STATE OF
MINNESOTA
EIGHTY-NINTH
SESSION - 2015
_____________________
FORTY-FIFTH
DAY
Saint Paul, Minnesota, Thursday, April 23, 2015
The House of Representatives convened at 11:00
a.m. and was called to order by Kurt Daudt, Speaker of the House.
Prayer was offered by the Reverend Ralph
Olsen, St. Philip's Lutheran Church, Hastings, Minnesota.
The members of the House gave the pledge
of allegiance to the flag of the United States of America.
The roll was called and the following
members were present:
Albright
Allen
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Applebaum
Atkins
Backer
Baker
Barrett
Bernardy
Bly
Carlson
Christensen
Clark
Considine
Cornish
Daniels
Davids
Davnie
Dean, M.
Dehn, R.
Dettmer
Dill
Drazkowski
Erhardt
Erickson
Fabian
Fenton
Fischer
Franson
Freiberg
Green
Gruenhagen
Gunther
Hackbarth
Hamilton
Hancock
Hansen
Hausman
Heintzeman
Hertaus
Hilstrom
Hoppe
Hornstein
Hortman
Howe
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kahn
Kelly
Kiel
Knoblach
Koznick
Kresha
Laine
Lenczewski
Lesch
Liebling
Lien
Lillie
Loeffler
Lohmer
Loon
Loonan
Lucero
Lueck
Mack
Mahoney
Marquart
Masin
McDonald
McNamara
Metsa
Miller
Moran
Mullery
Murphy, E.
Murphy, M.
Nash
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Pelowski
Peppin
Petersburg
Peterson
Pierson
Pinto
Poppe
Pugh
Quam
Rarick
Rosenthal
Runbeck
Sanders
Schoen
Schomacker
Schultz
Scott
Selcer
Simonson
Slocum
Smith
Sundin
Swedzinski
Theis
Thissen
Torkelson
Uglem
Urdahl
Vogel
Wagenius
Ward
Whelan
Wills
Winkler
Yarusso
Youakim
Zerwas
Spk. Daudt
A quorum was present.
Bennett, Garofalo, Halverson, Melin and
Persell were excused.
Mariani was excused until 11:45 a.m.
The Chief Clerk proceeded to read the
Journal of the preceding day. There
being no objection, further reading of the Journal was dispensed with and the
Journal was approved as corrected by the Chief Clerk.
REPORTS
OF CHIEF CLERK
S. F. No. 5 and
H. F. No. 845, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical with certain exceptions.
Nornes moved that
S. F. No. 5 be substituted for H. F. No. 845 and
that the House File be indefinitely postponed.
The motion prevailed.
S. F. No. 100 and
H. F. No. 236, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical with certain exceptions.
Zerwas moved that
S. F. No. 100 be substituted for H. F. No. 236
and that the House File be indefinitely postponed. The motion prevailed.
S. F. No. 495 and
H. F. No. 513, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical.
Zerwas moved that
S. F. No. 495 be substituted for H. F. No. 513
and that the House File be indefinitely postponed. The motion prevailed.
S. F. No. 997 and
H. F. No. 954, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical with certain exceptions.
Schomacker moved that
S. F. No. 997 be substituted for H. F. No. 954
and that the House File be indefinitely postponed. The motion prevailed.
S. F. No. 1406 and
H. F. No. 1429, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical with certain exceptions.
Dill moved that
S. F. No. 1406 be substituted for H. F. No. 1429
and that the House File be indefinitely postponed. The motion prevailed.
S. F. No. 1455 and
H. F. No. 1673, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical.
Newton moved that
S. F. No. 1455 be substituted for H. F. No. 1673
and that the House File be indefinitely postponed. The motion prevailed.
S. F. No. 1535 and
H. F. No. 1658, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical.
Nornes moved that
S. F. No. 1535 be substituted for H. F. No. 1658
and that the House File be indefinitely postponed. The motion prevailed.
CALL OF THE HOUSE
On the motion of Thissen and on the demand of 10 members, a call of the House was ordered. The following members answered to their names:
Albright
Allen
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Applebaum
Atkins
Backer
Baker
Barrett
Bernardy
Bly
Carlson
Christensen
Clark
Considine
Cornish
Daniels
Davids
Davnie
Dean, M.
Dehn, R.
Dettmer
Dill
Drazkowski
Erhardt
Erickson
Fabian
Fenton
Fischer
Franson
Freiberg
Green
Gruenhagen
Gunther
Hackbarth
Hamilton
Hancock
Hansen
Hausman
Heintzeman
Hertaus
Hilstrom
Hoppe
Hornstein
Hortman
Howe
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kahn
Kelly
Kiel
Knoblach
Koznick
Kresha
Laine
Lenczewski
Lesch
Liebling
Lien
Lillie
Loeffler
Lohmer
Loon
Loonan
Lucero
Lueck
Mack
Mahoney
Marquart
Masin
McDonald
McNamara
Metsa
Miller
Moran
Mullery
Murphy, E.
Murphy, M.
Nash
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Pelowski
Peppin
Petersburg
Peterson
Pierson
Pinto
Poppe
Pugh
Quam
Rarick
Rosenthal
Runbeck
Sanders
Schoen
Schomacker
Schultz
Scott
Selcer
Simonson
Slocum
Smith
Sundin
Swedzinski
Theis
Thissen
Torkelson
Uglem
Urdahl
Vogel
Wagenius
Ward
Whelan
Wills
Winkler
Yarusso
Youakim
Zerwas
Spk. Daudt
All members answered to the call and it was so ordered.
Peppin moved that the House recess subject to the call of the Chair. The motion prevailed.
RECESS
RECONVENED
The House reconvened and was called to order by Speaker pro tempore Davids.
CALL OF THE HOUSE LIFTED
Peppin moved that the call of the House be lifted. The motion prevailed and it was so ordered.
Daudt was excused for the remainder of today's session.
REPORTS OF STANDING COMMITTEES AND DIVISIONS
Davids from the Committee on Taxes to which was referred:
H. F. No. 303, A bill for an act relating to state government; appropriating money from the outdoor heritage fund, clean water fund, parks and trails fund, and arts and cultural heritage fund; establishing policy on milkweed; modifying provisions of Lessard-Sams Outdoor Heritage Council and Clean Water Council; modifying Water Law;
modifying use of legacy funds; modifying previous appropriations; modifying certain grant eligibility; requiring a report; amending Minnesota Statutes 2014, sections 16B.24, by adding a subdivision; 85.53, subdivision 2; 97A.056, subdivisions 2, 8, 11, by adding subdivisions; 103A.206; 103B.101, by adding a subdivision; 103C.101, by adding a subdivision; 103C.401, subdivision 1; 103C.501, subdivision 5; 114D.30, subdivision 2; 114D.50, subdivision 4; 129D.17, subdivision 2; Laws 2012, chapter 264, article 1, section 2, subdivision 5; Laws 2013, chapter 137, article 2, section 6; article 3, section 4; Laws 2014, chapter 256, article 1, section 2, subdivision 5; Laws 2014, chapter 295, section 10, subdivision 12; proposing coding for new law in Minnesota Statutes, chapters 84; 103B.
Reported the same back with the following amendments:
Page 78, line 14, delete "61,192,000" and insert "61,292,000" and delete "62,823,000" and insert "62,923,000"
With the recommendation that when so amended the bill be re-referred to the Committee on Ways and Means.
The report was adopted.
Knoblach from the Committee on Ways and Means to which was referred:
H. F. No. 844, A bill for an act relating to education; providing for funding and policy in early childhood, kindergarten through grade 12, and adult education, including general education, education excellence, standards and assessments, charter schools, special education, facilities and technology, nutrition and accounting, libraries, early childhood education, prevention, self-sufficiency and lifelong learning, state agencies, and forecast adjustments; requiring rulemaking; appropriating money; amending Minnesota Statutes 2014, sections 5A.03; 16A.103, subdivision 1c; 120A.41; 120B.02, subdivision 2; 120B.021, subdivision 4; 120B.022, subdivisions 1, 1a, 1b; 120B.024, subdivision 2; 120B.11, subdivision 1a; 120B.12, subdivision 4a; 120B.125; 120B.13, subdivision 4; 120B.30, subdivisions 1, 1a, 3; 120B.31, subdivision 4; 120B.36, subdivision 1; 121A.17, subdivision 5; 122A.09, subdivision 4, by adding subdivisions; 122A.14, subdivisions 3, 9, by adding a subdivision; 122A.18, subdivisions 2, 7c, 8; 122A.20, subdivision 1; 122A.21, subdivisions 1, 2; 122A.23; 122A.245, subdivisions 1, 3, 7; 122A.25; 122A.30; 122A.31, subdivisions 1, 2; 122A.40, subdivisions 5, 8, 10, 11, 13; 122A.41, subdivisions 2, 5, 6, 14; 122A.414, subdivision 2; 122A.60; 122A.61, subdivision 1; 122A.69; 122A.70, subdivision 1; 123A.24, subdivision 1; 123A.75, subdivision 1; 123B.045; 123B.59, subdivisions 6, 7; 123B.77, subdivision 3; 123B.88, subdivision 1, by adding a subdivision; 124D.041, subdivisions 1, 2; 124D.09, subdivisions 5, 5a, 8, 9, 12; 124D.091, subdivision 1; 124D.10, subdivisions 1, 3, 4, 8, 9, 12, 14, 16, 23, by adding a subdivision; 124D.11, subdivisions 1, 9; 124D.121; 124D.122; 124D.126, subdivision 1; 124D.127; 124D.128, subdivision 1; 124D.13; 124D.135; 124D.16; 124D.165; 124D.531, subdivisions 1, 2, 3; 124D.73, subdivisions 3, 4; 124D.74, subdivisions 1, 3, 6; 124D.75, subdivisions 1, 3, 9; 124D.76; 124D.78; 124D.79, subdivisions 1, 2; 124D.791, subdivision 4; 124D.861; 124D.862; 125A.01; 125A.023, subdivisions 3, 4; 125A.027; 125A.03; 125A.08; 125A.085; 125A.0942, subdivision 3; 125A.21; 125A.28; 125A.63, subdivisions 2, 3, 4, 5; 125A.75, subdivision 9; 125A.76, subdivisions 1, 2c; 125B.26, subdivision 2; 126C.10, subdivisions 1, 2, 2a, 2e, 3, 13a, 18, 24; 126C.13, subdivision 4; 126C.15, subdivisions 1, 2, 3; 126C.17, subdivisions 1, 2; 127A.05, subdivision 6; 127A.49, subdivision 1; 134.355, subdivisions 8, 9, 10; 135A.101, by adding a subdivision; 179A.20, by adding a subdivision; Laws 2013, chapter 116, article 1, section 58, subdivisions 2, as amended, 3, as amended, 4, as amended, 5, as amended, 6, as amended, 7, as amended, 11, as amended; article 3, section 37, subdivisions 3, as amended, 4, as amended, 5, as amended, 20, as amended; article 4, section 9, subdivision 2, as amended; article 5, section 31, subdivisions 2, as amended, 3, as amended, 4, as amended; article 6, section 12, subdivisions 2, as amended, 6, as amended; article 7, sections 19; 21, subdivisions 2, as amended, 3, as amended, 4, as amended; article 8, section 5, subdivisions 3, as amended, 4, as amended, 14, as
amended; Laws 2014, chapter 312, article 16, section 15; proposing coding for new law in Minnesota Statutes, chapters 119A; 122A; 124D; 125A; repealing Minnesota Statutes 2014, sections 120B.128; 122A.40, subdivision 11; 125A.63, subdivision 1; 126C.12, subdivision 6; 126C.13, subdivisions 3a, 3b, 3c; 126C.41, subdivision 1; Minnesota Rules, part 3500.1000.
Reported the same back with the recommendation that the bill be placed on the General Register.
MINORITY REPORT
April 22, 2015
We, the undersigned, being a minority of the Committee on Ways and Means, recommend that H. F. No. 844 be amended as follows and placed on the General Register.
Delete everything after the enacting clause and insert:
"ARTICLE 1
GENERAL EDUCATION
Section 1. Minnesota Statutes 2014, section 120A.41, is amended to read:
120A.41
LENGTH OF SCHOOL YEAR; HOURS OF INSTRUCTION.
A school board's annual school calendar must include at least 425 hours of instruction for a kindergarten student without a disability, 935 hours of instruction for a student in grades 1 though 6, and 1,020 hours of instruction for a student in grades 7 though 12, not including summer school. The school calendar for all-day kindergarten must include at least 850 hours of instruction for the school year. The school calendar for prekindergarten, if offered by the district, must include at least 850 hours of instruction for the school year and at least 200 hours of instruction for the summer. A school board's annual calendar must include at least 165 days of instruction for a student in grades 1 through 11 unless a four-day week schedule has been approved by the commissioner under section 124D.126.
EFFECTIVE
DATE. This section is
effective for the 2016-2017 school year and later.
Sec. 2. Minnesota Statutes 2014, section 122A.415, subdivision 1, is amended to read:
Subdivision 1. Revenue amount. (a) A school district, intermediate school district, school site, or charter school that meets the conditions of section 122A.414 and submits an application approved by the commissioner is eligible for alternative teacher compensation revenue.
(b) For school district and intermediate school district applications, the commissioner must consider only those applications to participate that are submitted jointly by a district and the exclusive representative of the teachers. The application must contain an alternative teacher professional pay system agreement that:
(1) implements an alternative teacher professional pay system consistent with section 122A.414; and
(2) is negotiated and adopted according to the Public Employment Labor Relations Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a district may enter into a contract for a term of two or four years.
Alternative teacher compensation revenue
for a qualifying school district or site in which the school board and the
exclusive representative of the teachers agree to place teachers in the
district or at the site on the alternative teacher professional pay system
equals $260 the alternative teacher compensation allowance times
the number of pupils enrolled at the district or site on October 1 of the
previous fiscal year. The alternative
teacher compensation allowance equals $260 for fiscal years 2015 through 2017,
$246 for fiscal year 2018, and $244 for fiscal year 2019 and later. Alternative teacher compensation revenue for
a qualifying intermediate school district must be calculated under subdivision
4, paragraph (a).
(c) For a newly combined or consolidated district, the revenue shall be computed using the sum of pupils enrolled on October 1 of the previous year in the districts entering into the combination or consolidation. The commissioner may adjust the revenue computed for a site using prior year data to reflect changes attributable to school closings, school openings, or grade level reconfigurations between the prior year and the current year.
(d) The revenue is available only to school districts, intermediate school districts, school sites, and charter schools that fully implement an alternative teacher professional pay system by October 1 of the current school year.
Sec. 3. Minnesota Statutes 2014, section 124D.11, subdivision 1, is amended to read:
Subdivision 1. General
education revenue. (a) General
education revenue must be paid to a charter school as though it were a district. The general education revenue for each
adjusted pupil unit is the state average general education revenue per pupil
unit, plus the referendum equalization aid allowance in the pupil's district of
residence, minus an amount equal to the product of the formula allowance
according to section 126C.10, subdivision 2, times .0466, calculated without
declining enrollment revenue, local optional revenue, basic skills revenue,
extended time support revenue, pension adjustment revenue,
transition revenue, and transportation sparsity revenue, plus declining
enrollment revenue, basic skills revenue, extended time support
revenue, pension adjustment revenue, and transition revenue as though the
school were a school district.
(b) For a charter school operating an
extended day, extended week, or summer program, the general education revenue for each extended time pupil unit
equals $4,794 in paragraph (a) is increased by an amount equal to 25
percent of the statewide average extended support revenue per pupil unit.
EFFECTIVE
DATE. This section is
effective for fiscal year 2016 and later.
Sec. 4. [124D.171]
PREKINDERGARTEN PROGRAM.
Subdivision 1. Programs
authorized. A school district
may offer a voluntary prekindergarten program for all four-year-old children.
Subd. 2. Program
characteristics. (a)
High-quality, state-funded prekindergarten must prepare children for kindergarten
and meet the state prekindergarten program criteria which include the
following:
(1) compensatory instruction that
accelerates children's language and literacy skills, mathematical thinking, and
social skills;
(2) instructional content and activities
that are of sufficient length and intensity to address learning needs;
(3)
measurement of each child's cognitive and social skills using a formative
measure when the child enters and again before the child leaves the program,
screening measures such as literacy, and others from the state-approved menu of
kindergarten entrance measures;
(4) class size of 20 or fewer children
and child-staff ratios of ten-to-one or less;
(5) an individualized learning plan for
each child created by the family and teacher, which includes a transition plan
to kindergarten;
(6) a lead classroom teacher that is an
appropriately licensed teacher trained in child development, language and
literacy development, early education instruction, and native and English
language development;
(7) prekindergarten instructional staff
salaries comparable to the salaries of local kindergarten through grade 12
instructional staff;
(8) community collaboration and
planning, including community health and social service agencies to ensure
children have access to comprehensive services;
(9) coordination with all relevant
school district programs and services, for example, special education,
homeless, and English learners;
(10) parent engagement strategies that
include culturally and linguistically responsive activities in prekindergarten
through third grade;
(11) development and implementation of
curriculum, assessment, and instructional strategies aligned with the state's
early learning guidelines and academic standards, prekindergarten through third
grade;
(12) inclusion of children with
disabilities in the prekindergarten program;
(13) coordinated professional
development and training for both school district and community-based early
learning providers that is informed by a measure of adult-child interactions;
and
(14) a plan for mixed delivery that may
include partnerships with child care centers, family child care programs
licensed under section 245A.03 and Head Start programs that comply with the
state prekindergarten program requirements.
Plan components include strategies for recruitment, contracting, and
monitoring of fiscal compliance and program quality.
(b) Districts must include their
strategy for implementing and measuring the impact of their state-funded
prekindergarten program in their World's Best Workforce Plan.
(c) Notwithstanding paragraph (a),
clause (6), for fiscal year 2017, every district receiving prekindergarten
funding under Minnesota Statutes, section 126C.05, subdivision 1, must ensure
at least 25 percent of classroom teachers have the required license or special
permission, 50 percent for fiscal year 2018, 75 percent for fiscal year 2019,
and 100 percent for each classroom by fiscal year 2020 and thereafter.
Subd. 3. Child
eligibility. A child may participate
in a prekindergarten program if the child:
(1) is not yet in kindergarten and is
four years old on September 1 of that school year;
(2) has completed the early childhood health and development screening under sections 121A.16 to 121A.19 within 45 days of enrollment; and
(3) provides documentation of required
immunizations under section 121A.15.
Subd. 4. Hours
of instruction. A school
board's annual school calendar for prekindergarten must meet the minimum hours
requirement in section 120A.41.
Subd. 5. Phase-in. For fiscal years 2017 and 2018, if
more students apply for admission to a prekindergarten program operated under
this section than for whom funding is available, a school district must grant
priority to students from low income families.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 5. Minnesota Statutes 2014, section 124D.59, subdivision 2, is amended to read:
Subd. 2. English
learner. (a) "English
learner" means a pupil in kindergarten prekindergarten
through grade 12 who meets the requirements under subdivision 2a or the
following requirements:
(1) the pupil, as declared by a parent or guardian first learned a language other than English, comes from a home where the language usually spoken is other than English, or usually speaks a language other than English; and
(2) the pupil is determined by a valid assessment measuring the pupil's English language proficiency and by developmentally appropriate measures, which might include observations, teacher judgment, parent recommendations, or developmentally appropriate assessment instruments, to lack the necessary English skills to participate fully in academic classes taught in English.
(b) A pupil enrolled in a Minnesota public school in any grade 4 through 12 who in the previous school year took a commissioner-provided assessment measuring the pupil's emerging academic English, shall be counted as an English learner in calculating English learner pupil units under section 126C.05, subdivision 17, and shall generate state English learner aid under section 124D.65, subdivision 5, if the pupil scored below the state cutoff score or is otherwise counted as a nonproficient participant on the assessment measuring the pupil's emerging academic English, or, in the judgment of the pupil's classroom teachers, consistent with section 124D.61, clause (1), the pupil is unable to demonstrate academic language proficiency in English, including oral academic language, sufficient to successfully and fully participate in the general core curriculum in the regular classroom.
(c) Notwithstanding paragraphs (a) and (b),
a pupil in kindergarten prekindergarten through grade 12 shall
not be counted as an English learner in calculating English learner pupil units
under section 126C.05, subdivision 17, and shall not generate state English
learner aid under section 124D.65, subdivision 5, if:
(1) the pupil is not enrolled during the current fiscal year in an educational program for English learners under sections 124D.58 to 124D.64; or
(2) the pupil has generated six seven
or more years of average daily membership in Minnesota public schools since
July 1, 1996.
EFFECTIVE
DATE. This section is
effective for revenue for fiscal year 2017 and later, except that the amendment
to paragraph (c), clause (2), is effective for fiscal year 2016 and later.
Sec. 6. Minnesota Statutes 2014, section 126C.05, subdivision 1, is amended to read:
Subdivision 1. Pupil unit. Pupil units for each Minnesota resident pupil under the age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c), in average daily membership enrolled in the district of residence, in another district under sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under section 124D.10; or for whom the resident district pays tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this subdivision.
(a) A prekindergarten pupil with a disability who is enrolled in a program approved by the commissioner and has an individualized education program is counted as the ratio of the number of hours of assessment and education service to 825 times 1.0 with a minimum average daily membership of 0.28, but not more than 1.0 pupil unit.
(b) A prekindergarten pupil who is assessed but determined not to be disabled is counted as the ratio of the number of hours of assessment service to 825 times 1.0.
(c) A kindergarten pupil with a disability who is enrolled in a program approved by the commissioner is counted as the ratio of the number of hours of assessment and education services required in the fiscal year by the pupil's individualized education program to 875, but not more than one.
(d) A prekindergarten pupil who is not
included in paragraph (a) or (b) is counted as 1.0 pupil unit if the pupil is
enrolled in a free all-day, every day prekindergarten program available to all
prekindergarten pupils at the pupil's school that meets the minimum hours
requirement in section 120A.41 and meets the requirements in section 124D.171. For fiscal year 2017 only, a district's
prekindergarten pupil count under this paragraph must not exceed the lesser of
the number of students served, or a number equal to 25 percent of the
kindergarten pupils served during the previous fiscal year. For fiscal year 2018 only, a district's
prekindergarten pupil count under this paragraph must not exceed the lesser of
the number of students served, or a number equal to 60 percent of the
kindergarten pupils served during the previous fiscal year.
(d) (e) A kindergarten pupil
who is not included in paragraph (c) is counted as 1.0 pupil unit if the pupil
is enrolled in a free all-day, every day kindergarten program available to all
kindergarten pupils at the pupil's school that meets the minimum hours
requirement in section 120A.41, or is counted as .55 pupil unit, if the pupil
is not enrolled in a free all-day, every day kindergarten program available to
all kindergarten pupils at the pupil's school.
(e) (f) A pupil who is in any
of grades 1 to 6 is counted as 1.0 pupil unit.
(f) (g) A pupil who is in any
of grades 7 to 12 is counted as 1.2 pupil units.
(g) (h) A pupil who is in the
postsecondary enrollment options program is counted as 1.2 pupil units.
EFFECTIVE
DATE. This section is
effective for revenue for fiscal year 2017 and later.
Sec. 7. Minnesota Statutes 2014, section 126C.10, subdivision 1, is amended to read:
Subdivision 1. General
education revenue. (a) For fiscal
years 2013 and 2014, the general education revenue for each district equals the
sum of the district's basic revenue, extended time revenue, gifted and talented
revenue, small schools revenue, basic skills revenue, secondary sparsity
revenue, elementary sparsity revenue, transportation sparsity revenue, total
operating capital revenue, equity revenue, alternative teacher compensation
revenue, and transition revenue.
(b) For fiscal year 2015 and later,
the general education revenue for each district equals the sum of the
district's basic revenue, extended time support revenue, gifted
and talented revenue, declining enrollment revenue, local optional revenue,
small schools revenue, basic skills revenue, secondary sparsity revenue,
elementary sparsity revenue, transportation sparsity revenue, total operating
capital revenue, equity revenue, pension adjustment revenue, and transition
revenue.
Sec. 8. Minnesota Statutes 2014, section 126C.10, subdivision 2, is amended to read:
Subd. 2.
Basic revenue. For fiscal year 2014, the basic
revenue for each district equals the formula allowance times the adjusted
marginal cost pupil units for the school year. For fiscal year 2015 and later, the basic
revenue for each district equals the formula allowance times the adjusted pupil
units for the school year. The
formula allowance
for
fiscal year 2013 is $5,224. The formula
allowance for fiscal year 2014 is $5,302.
The formula allowance for fiscal year 2015 and later is $5,831. The formula allowance for fiscal year 2016
is $5,948. The formula allowance for
fiscal year 2017 and later is $6,065.
Sec. 9. Minnesota Statutes 2014, section 126C.10, subdivision 2a, is amended to read:
Subd. 2a. Extended
time support revenue. (a)
A school district's extended time revenue for fiscal year 2014 is equal to
the product of $4,601 and the sum of the adjusted marginal cost pupil units of
the district for each pupil in average daily membership in excess of 1.0 and
less than 1.2 according to section 126C.05, subdivision 8. A school district's extended time support
revenue for fiscal year 2015 and later is equal to the product of $5,017
$5,117 and the sum of the adjusted pupil units of the district for each
pupil in average daily membership in excess of 1.0 and less than 1.2 according
to section 126C.05, subdivision 8.
(b) A school district's extended time
support revenue may be used for extended day programs, extended week
programs, summer school, vacation break academies such as spring break
academies and summer term academies, and other programming authorized under
the learning year program. Extended
support revenue may also be used by alternative learning centers serving high
school students for academic purposes during the school day.
EFFECTIVE
DATE. This section is
effective for fiscal year 2016 and later.
Sec. 10. Minnesota Statutes 2014, section 126C.10, subdivision 2d, is amended to read:
Subd. 2d. Declining enrollment revenue. (a) A school district's declining enrollment revenue equals the greater of zero or the product of: (1) 28 percent of the formula allowance for that year and (2) the difference between the adjusted pupil units for the preceding year and the adjusted pupil units for the current year.
(b) Notwithstanding paragraph (a), for fiscal years 2015, 2016, and 2017 only, a pupil enrolled at the Crosswinds school shall not generate declining enrollment revenue for the district or charter school in which the pupil was last counted in average daily membership.
(c) Notwithstanding paragraph (a), for
fiscal years 2017, 2018, and 2019 only, prekindergarten pupil units under
section 126C.05, subdivision 1, paragraph (d), must be excluded from the
calculation of declining enrollment revenue.
Sec. 11. Minnesota Statutes 2014, section 126C.10, subdivision 2e, is amended to read:
Subd. 2e. Local optional revenue. (a) Local optional revenue for a school district equals $424 times the adjusted pupil units of the district for that school year.
(b) A district's local optional levy equals
its local optional revenue times the lesser of one or the ratio of its
referendum market value per resident pupil unit to $510,000 the local
optional equalizing factor. The
local optional revenue levy must be spread on referendum market value. A district may levy less than the permitted
amount.
(c) A district's local optional aid equals its local optional revenue less its local optional levy, times the ratio of the actual amount levied to the permitted levy.
(d) A district's local optional
equalizing factor equals $510,000 times the greater of one or the ratio of the
district's seasonal recreational factor to 0.30.
(e) A district's seasonal recreational
factor equals the ratio of the market value of property in the district
classified as 4(c)12 under section 273.13 to the district's total taxable
market value under section 273.13.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2016 and later.
Sec. 12. Minnesota Statutes 2014, section 126C.10, subdivision 13a, is amended to read:
Subd. 13a. Operating capital levy. To obtain operating capital revenue for fiscal year 2015 and later, a district may levy an amount not more than the product of its operating capital revenue for the fiscal year times the lesser of one or the ratio of its adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital equalizing factor. The operating capital equalizing factor equals $14,500 for fiscal years 2015 and 2016, $38,650 for fiscal year 2017, $47,700 for fiscal year 2018, and $50,550 for fiscal year 2019 and later.
Sec. 13. Minnesota Statutes 2014, section 126C.10, subdivision 18, is amended to read:
Subd. 18. Transportation sparsity revenue allowance. (a) A district's transportation sparsity allowance equals the greater of zero or the result of the following computation:
(i) Multiply the formula allowance according to subdivision 2, by .141.
(ii) Multiply the result in clause (i) by the district's sparsity index raised to the 26/100 power.
(iii) Multiply the result in clause (ii) by the district's density index raised to the 13/100 power.
(iv) Multiply the formula allowance according to subdivision 2, by .0466.
(v) Subtract the result in clause (iv) from the result in clause (iii).
(vi) Multiply the result in clause (v)
by the greater of (1) one or (2) the ratio of the square mile area of the
district to 3,000.
(vii) For a district that does not
qualify for secondary sparsity revenue under subdivision 7 or elementary
sparsity revenue under subdivision 8, multiply the result in clause (vi) by the
greater of (1) one or (2) the ratio of the square mile area of the district to
525.
(b) Transportation sparsity revenue is equal to the transportation sparsity allowance times the adjusted pupil units.
EFFECTIVE
DATE. This section is
effective for revenue in fiscal year 2016 and later.
Sec. 14. RECIPROCITY
AGREEMENT EXEMPTION; HENDRICKS.
Notwithstanding Minnesota Statutes,
sections 124D.04, subdivision 6, paragraph (b); 124D.041, subdivision 3,
paragraph (b); and 124D.05, subdivision 2a, the provisions of Minnesota
Statutes, section 124D.041 and the agreement shall not apply to Independent
School District No. 402, Hendricks.
EFFECTIVE
DATE. This section is
effective for the 2015-2016 school year and later.
Sec. 15. APPROPRIATIONS.
Subdivision 1. Department
of Education. The sums
indicated in this section are appropriated from the general fund to the
Department of Education for the fiscal years designated.
Subd. 2. General
education aid. For general
education aid under Minnesota Statutes, section 126C.13, subdivision 4:
|
|
$6,624,575,000
|
.
. . . . |
2016
|
|
|
$6,871,717,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$622,907,000 for 2015 and $6,001,523,000 for 2016.
The 2017 appropriation includes
$638,816,000 for 2016 and $6,232,902,000 for 2017.
Subd. 3. Enrollment
options transportation. For
transportation of pupils attending postsecondary institutions under Minnesota
Statutes, section 124D.09, or for transportation of pupils attending
nonresident districts under Minnesota Statutes, section 124D.03:
|
|
$39,000
|
.
. . . . |
2016
|
|
|
$42,000
|
.
. . . . |
2017
|
Subd. 4. Abatement
revenue. For abatement aid
under Minnesota Statutes, section 127A.49:
|
|
$2,740,000
|
.
. . . . |
2016
|
|
|
$2,932,000
|
.
. . . . |
2017
|
The 2016 appropriation includes $278,000
for 2015 and $2,462,000 for 2016.
The 2017 appropriation includes $273,000
for 2016 and $2,659,000 for 2017.
Subd. 5. Consolidation
transition. For districts
consolidating under Minnesota Statutes, section 123A.485:
|
|
$292,000
|
.
. . . . |
2016
|
|
|
$165,000
|
.
. . . . |
2017
|
The 2016 appropriation includes $22,000
for 2015 and $270,000 for 2016.
The 2017 appropriation includes $30,000
for 2016 and $135,000 for 2017.
Subd. 6. Nonpublic
pupil education aid. For
nonpublic pupil education aid under Minnesota Statutes, sections 123B.40 to
123B.43 and 123B.87:
|
|
$16,756,000
|
.
. . . . |
2016
|
|
|
$17,527,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$1,575,000 for 2015 and $15,181,000 for 2016.
The 2017 appropriation includes
$1,686,000 for 2016 and $15,841,000 for 2017.
Subd. 7. Nonpublic
pupil transportation. For
nonpublic pupil transportation aid under Minnesota Statutes, section 123B.92,
subdivision 9:
|
|
$17,322,000
|
.
. . . . |
2016
|
|
|
$17,444,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$1,816,000 for 2015 and $15,506,000 for 2016.
The 2017 appropriation includes
$1,722,000 for 2016 and $15,722,000 for 2017.
Subd. 8. One-room
schoolhouse. For a grant to
Independent School District No. 690, Warroad, to operate the Angle Inlet
School:
|
|
$65,000
|
.
. . . . |
2016
|
|
|
$65,000
|
.
. . . . |
2017
|
Subd. 9. Compensatory
revenue pilot project. For
grants for participation in the compensatory revenue pilot program under Laws
2005, First Special Session chapter 5, article 1, section 50:
|
|
$7,325,000
|
.
. . . . |
2016
|
|
|
$7,325,000
|
.
. . . . |
2017
|
Of this amount, $4,730,000 in each year
is for a grant to Independent School District No. 11, Anoka-Hennepin;
$240,000 in each year is for a grant to Independent School District No. 286,
Brooklyn Center; $660,000 in each year is for a grant to Independent School
District No. 279, Osseo; $500,000 in each year is for a grant to
Independent School District No. 281, Robbinsdale; $520,000 in each year is
for a grant to Independent School District No. 535, Rochester; $205,000 in
each year is for a grant to Independent School District No. 833, South
Washington; and $470,000 in each year is for a grant to Independent School
District No. 241, Albert Lea.
If a grant to a specific school
district is not awarded, the commissioner may increase the aid amounts to any
of the remaining participating school districts.
Subd. 10. Career
and technical aid. For career
and technical aid under Minnesota Statutes, section 124D.4531, subdivision 1b:
|
|
$5,420,000
|
.
. . . . |
2016
|
|
|
$4,405,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$574,000 for 2015 and $4,846,000 for 2016.
The 2017 appropriation includes
$538,000 for 2016 and $3,867,000 for 2017.
ARTICLE 2
EDUCATION EXCELLENCE
Section 1. Minnesota Statutes 2014, section 5A.03, is amended to read:
5A.03
ORGANIZATION APPLICATION FOR REGISTRATION.
Subdivision 1. Placing high school students in Minnesota. (a) An application for registration as an international student exchange visitor placement organization must be submitted in the form prescribed by the secretary of state. The application must include:
(1) evidence that the organization meets the standards established by the secretary of state by rule;
(2) the name, address, and telephone number of the organization, its chief executive officer, and the person within the organization who has primary responsibility for supervising placements within the state;
(3) the organization's unified business identification number, if any;
(4) the organization's Office of Exchange Coordination and Designation, United States Department of State number, if any;
(5) evidence of Council on Standards for International Educational Travel listing, if any;
(6) whether the organization is exempt from federal income tax; and
(7) a list of the organization's placements in Minnesota for the previous academic year including the number of students placed, their home countries, the school districts in which they were placed, and the length of their placements.
(b) The application must be signed by the chief executive officer of the organization and the person within the organization who has primary responsibility for supervising placements within Minnesota. If the secretary of state determines that the application is complete, the secretary of state shall file the application and the applicant is registered.
(c) Organizations that have registered shall inform the secretary of state of any changes in the information required under paragraph (a), clause (1), within 30 days of the change. There is no fee to amend a registration.
(d) Registration under this chapter is valid for one year. The registration may be renewed annually. The fee to renew a registration is $50 per year.
(e) Organizations registering for the first time in Minnesota must pay an initial registration fee of $150.
(f) Fees collected by the secretary of state under this section must be deposited in the state treasury and credited to the general fund.
Subd. 2. Placing
Minnesota students in travel abroad programs. (a) A school district or charter
school with enrolled students who participate in a foreign exchange or study or
other travel abroad program under a written agreement between the district or
charter school and the program provider must use a form developed by the
Department of Education to annually report to the department by November 1 the
following data from the previous school year:
(1) the number of Minnesota student
deaths that occurred while Minnesota students were participating in the foreign
exchange or study or other travel abroad program and that resulted from
Minnesota students participating in the program;
(2) the number of Minnesota students
hospitalized due to accidents and the illnesses that occurred while Minnesota
students were participating in the foreign exchange or study or other travel
abroad program and that resulted from Minnesota students participating in the
program; and
(3) the name and type of the foreign
exchange or study or other travel abroad program and the city or region where
the reported death, hospitalization due to accident, or the illness occurred.
(b) School districts and charter
schools must ask but must not require enrolled eligible students and the
parents or guardians of other enrolled students who complete a foreign exchange
or study or other travel abroad program to disclose the information under
paragraph (a).
(c) When reporting the data under
paragraph (a), a school district or charter school may supplement the data with
a brief explanatory statement. The
Department of Education annually must aggregate and publish the reported data
on the department Web site in a format that facilitates public access to the
aggregated data and include links to both
the
United States Department of State's Consular Information Program that informs
the public of conditions abroad that may affect students' safety and security
and the publicly available reports on sexual assaults and other criminal acts
affecting students participating in a foreign exchange or study or other travel
abroad program.
(d) School districts and charter schools
with enrolled students who participate in foreign exchange or study or other
travel abroad programs under a written agreement between the district or
charter school and the program provider are encouraged to adopt policies
supporting the programs and to include program standards in their policies to
ensure students' health and safety.
(e) To be eligible under this subdivision
to provide a foreign exchange or study or other travel abroad program to
Minnesota students enrolled in a school district or charter school, a program
provider annually must register with the secretary of state and provide the
following information on a form developed by the secretary of state: the name, address, and telephone number of
the program provider, its chief executive officer, and the person within the
provider's organization who is primarily responsible for supervising programs
within the state; the program provider's unified business identification
number, if any; evidence of Council on Standards for International Educational
Travel listing, if any; whether the program provider is exempt from federal
income tax; a list of the program provider's placements in foreign countries
for the previous school year including the number of Minnesota students placed,
where Minnesota students were placed, and the length of their placement; the
terms and limits of the medical and accident insurance available to cover
participating students and the process for filing a claim; and the signatures
of the program provider's chief executive officer and the person primarily
responsible for supervising Minnesota students' placements in foreign countries. If the secretary of state determines the
registration is complete, the secretary of state shall file the registration
and the program provider is registered. Registration
with the secretary of state must not be considered or represented as an
endorsement of the program provider by the secretary of state. The secretary of state annually must publish
on its Web site aggregated data under paragraph (c) received from the
Department of Education.
(f)
Program providers, annually by August 1, must provide the data required under
paragraph (a), clauses (1) to (3), to the districts and charter schools
with enrolled students participating in the provider's program.
(g) The school district, the charter
school, the Department of Education, and their respective employees, when
acting in their official capacity, are immune from civil and criminal liability
with respect to all activities related to implementing this subdivision.
EFFECTIVE
DATE. This section is
effective for the 2015-2016 school year and later.
Sec. 2. Minnesota Statutes 2014, section 119B.011, subdivision 15, is amended to read:
Subd. 15. Income. "Income" means earned or
unearned income received by all family members, including public assistance
cash benefits and at-home infant child care subsidy payments, unless
specifically excluded and child support and maintenance distributed to the
family under section 256.741, subdivision 15.
The following are excluded from income:
funds used to pay for health insurance premiums for family members,
Supplemental Security Income, scholarships, work-study income, and
grants, and other financial assistance, including loan forgiveness, that
cover costs or reimbursement for tuition, fees, books, and educational
supplies; student loans for tuition, fees, books, supplies, and living
expenses; state and federal earned income tax credits; assistance specifically
excluded as income by law; in-kind income such as food support, energy
assistance, foster care assistance, medical assistance, child care assistance,
and housing subsidies; earned income of full-time or part-time students up to
the age of 19, who have not earned a high school diploma or GED high school
equivalency diploma including earnings from summer employment; grant awards
under the family subsidy program; nonrecurring lump-sum income only to the
extent that it is earmarked and used for the purpose for which it is paid; and
any income assigned to the public authority according to section 256.741.
Sec. 3. Minnesota Statutes 2014, section 122A.63, subdivision 4, is amended to read:
Subd. 4. Grant
amount. The commissioner may award a
joint grant in the amount it determines to be appropriate. The grant shall include money for the
postsecondary institution, school district, and student scholarships,
and student loans. The
commissioner may reallocate any unspent funds to one or more of the four joint
grant recipients identified in subdivision 1.
Sec. 4. Minnesota Statutes 2014, section 122A.63, subdivision 5, is amended to read:
Subd. 5. Information
to student applicants. At the time a
student applies for a scholarship and loan, the student shall be
provided information about the fields of licensure needed by school districts
in the part of the state within which the district receiving the joint grant is
located. The information shall be
acquired and periodically updated by the recipients of the joint grant. Information provided to students shall
clearly state that scholarship and loan decisions are not based upon the
field of licensure selected by the student.
Sec. 5. Minnesota Statutes 2014, section 122A.63, subdivision 6, is amended to read:
Subd. 6. Eligibility
for scholarships and loans. The
following American Indian people are eligible for scholarships:
(1) a student, including a teacher aide employed by a district receiving a joint grant, who intends to become a teacher and who is enrolled in a postsecondary institution receiving a joint grant;
(2) a
licensed employee of a district receiving a joint grant, who is enrolled in a
master of education program; and
(3) a student who, after applying for
federal and state financial aid and an the Minnesota Indian
scholarship according to section 136A.126, has financial needs that remain
unmet. financial need shall be
determined according to the congressional
methodology for needs determination or as otherwise set in federal law as defined by section 136A.101.
A person who has actual living expenses
in addition to those addressed by the congressional methodology for needs
determination, or as otherwise set in federal law, may receive a loan according
to criteria established by the commissioner.
A contract shall be executed between the state and the student for the
amount and terms of the loan.
Sec. 6. [122A.80]
TEACHMN.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given.
(b) "High needs area" means a
high needs area as defined in the Department of Education biannual teacher
supply and demand report under section 127A.05, subdivision 6, or other surveys
conducted by the Department of Education that provide indicators for teacher
supply and demand needs not captured by the teacher supply and demand report.
(c) "High needs school" means
a school that:
(1) is a focus or priority school under
the multiple measurement rating;
(2) has a concentration of students
above the state average for free and reduced-price lunch; or
(3) is geographically isolated and
experiencing a teacher shortage.
(d)
"Qualified candidate" means a teacher candidate enrolled in a
Minnesota teacher licensure program who meets the program eligibility
requirements in subdivision 3 and in rules or procedures adopted under
subdivision 7.
Subd. 2. Account. An account is created within the
Office of Higher Education to disburse fixed-rate forgivable loans to qualified
candidates under this section. Unused
funds appropriated to the Department of Education and transferred to the Office
of Higher Education in a given fiscal year will be carried over for loans and
program administrative costs in future years.
Principal and interest payments on unforgiven loans shall be credited to
the account and shall be carried over and do not cancel and may be used for
administrative program costs not covered by the appropriated amount and for
issuing new loans.
Subd. 3. Eligibility. A candidate may apply to the commissioner
of the Office of Higher Education to receive a forgivable loan under this
section. The commissioner must award
loans to candidates enrolling in programs in high needs areas and to candidates
expressing interest in teaching in high needs schools based on shortages and
geographical distribution, and must take into consideration diversifying the
teacher workforce. The application must
include a letter of support or character reference from a professional
supervisor or colleague or academic professor who is not related to the
applicant.
Subd. 4. Loan
requirements. Interest
accrues both during and after a borrower's postsecondary enrollment and is
capitalized at the time of repayment. At
the time of receiving the loan, a candidate must commit to seeking a qualified
position in a Minnesota school district for four years upon completion of
teacher preparation as a full-time teacher as verified through the Staff
Automated Reporting (STAR) system. Candidates
who do not complete the four-year service commitment may be required to repay
the loan.
Subd. 5. Usage. The loan may only be used for tuition and related living and miscellaneous expenses required to complete teacher preparation and attain licensure.
Subd. 6. Forgiveness
and repayment. (a) If a
borrower's eligibility for the loan is based on the candidate's enrollment in a
program in a high needs area, the borrower's student loan payment shall be
deferred if the candidate completed the program and obtains a full-time
position in that discipline. Upon
completing four years of teaching in that discipline, the loan obligation shall
be forgiven in the full amount of principal plus accrued interest. Except as allowed under paragraph (c), a
student borrower has up to five years from graduation or school termination to
fulfill the teaching obligation.
(b) If a borrower's eligibility for the
loan is based on the candidate's employment in a high needs school, the
borrower's student loan payment shall be deferred if the candidate obtains a
full-time position in a high needs school at the time of hire. Upon completing four years of teaching at
that school or another high needs school at the time of hire, the loan
obligation shall be forgiven in the full amount of principal plus accrued
interest. Except as allowed under
paragraph (c), a student borrower has up to five years from graduation or
school termination to fulfill the teaching obligation.
(c) An appeals process shall be
established for special circumstances, such as a temporary medical leave of
absence or layoff, which may allow the qualifying term to be extended.
(d) For loans not in deferral under
paragraph (a) or (b), loan payments are deferred for up to 12 months or until
the borrower obtains employment in a nonqualified position, whichever is first. At that time, monthly loan payments will be required from the borrower until
the loan is paid in full or the loan is deferred under paragraph (a) or (b).
Subd. 7. Rulemaking. The commissioner of education shall
adopt rules or procedures, in consultation with the Office of Higher Education,
to implement this section, including:
(1) additional eligibility and renewal
criteria;
(2) annual and lifetime maximum awards
per student;
(3) how the loan funds will be
disbursed;
(4) the interest rate for the loans;
(5) service fulfillment and repayment
criteria; and
(6) an appeals process consistent with
subdivision 6.
Sec. 7. [122A.81]
STEPPING UP FOR KIDS; FINANCIAL ASSISTANCE.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given.
(b) "High needs area" means a
high needs area as defined in the Department of Education biannual teacher
supply and demand report under section 127A.05, subdivision 6, or other surveys
conducted by the Department of Education that provide indicators for teacher
supply and demand needs not captured by the teacher supply and demand report.
(c) "High needs school" means
a school that:
(1) is a focus or priority school under
the multiple measurement rating;
(2) has a concentration of students
above the state average for free and reduced-price lunch; or
(3) is geographically isolated and
experiencing a teacher shortage.
(d) "Qualified candidate"
means a paraprofessional currently employed in a Minnesota school who has been
admitted to a Minnesota teacher licensure program and meets the program
eligibility requirements in subdivision 3 and in rules adopted under
subdivision 5.
Subd. 2. Account. An account is created within the
Office of Higher Education to disburse financial assistance for
paraprofessionals when enrolled in a program in Minnesota leading to teacher
licensure. Unused funds appropriated to
the Department of Education in a given fiscal year shall be transferred to the
Office of Higher Education and carried over for stepping up for kids financial
assistance and program and administrative costs in future years.
Subd. 3. Eligibility. (a) A qualified candidate may apply to
the commissioner of the Office of Higher Education to receive financial assistance
under this section. The commissioner of
the Office of Higher Education shall award financial assistance in high needs
areas and high needs schools based on shortages, geographical distribution, or
other surveys conducted by the Department of Education and must take into
consideration diversifying the teacher workforce. The application must include a letter of
support from the school district administrator where the paraprofessional is
employed.
(b)
Candidates must commit to remain employed in a Minnesota school district for
four years upon completion of teacher preparation as verified through the Staff
Automated Reporting (STAR) system. Candidates
who do not complete the four-year service commitment may be required to repay
the financial assistance.
Subd. 4. Usage. The financial assistance may only be
used for tuition and related living and miscellaneous expenses required to
complete teacher preparation and attain licensure.
Subd. 5. Rulemaking. The commissioner of education shall
adopt rules or procedures, in consultation with the Office of Higher Education,
to implement this section, including:
(1) additional eligibility and renewal
criteria;
(2) annual and lifetime maximum awards
per student; and
(3) service fulfillment and repayment criteria.
Sec. 8. [124D.231]
FULL-SERVICE COMMUNITY SCHOOLS.
Subdivision 1. Definitions. For the purposes of this section, the
following terms have the meanings given them.
(a) "Community organization"
means a nonprofit organization that has been in existence for three years or
more and serves persons within the community surrounding the covered school
site on education and other issues.
(b) "Community school
consortium" means a group of schools and community organizations that
propose to work together to plan and implement community school programming.
(c)
"Community school programming" means services, activities, and
opportunities described under subdivision 2, paragraph (g).
(d) "High-quality child care or
early childhood education programming" means educational programming for
preschool-aged children that is grounded in research, consistent with best
practices in the field, and provided by licensed teachers.
(e) "School site" means a
school site at which an applicant has proposed or has been funded to provide
community school programming.
(f) "Site coordinator" is an
individual who is responsible for aligning programming with the needs of the
school community identified in the baseline analysis.
Subd. 2. Full-service
community school program. (a)
The commissioner shall provide funding to eligible school sites to plan,
implement, and improve full-service community schools. Eligible school sites must meet one of the
following criteria:
(1) the school is on a development plan
for continuous improvement under section 120B.35, subdivision 2; or
(2) the school is in a district that
has an achievement and integration plan approved by the commissioner of
education under sections 124D.861 and 124D.862.
(b) An eligible school site may receive
up to $100,000 annually. School sites
receiving funding under this section shall hire or contract with a partner
agency to hire a site coordinator to coordinate services at each covered school
site.
(c)
Implementation funding of up to $20,000 must be available for up to one year
for planning for school sites. At the
end of this period, the school must submit a full-service community school
plan, pursuant to paragraph (g).
(d) The commissioner shall dispense the
funds to schools with significant populations of students receiving free or
reduced-price lunches. Schools with
significant homeless and highly mobile students shall also be a priority. The commissioner must also dispense the funds
in a manner to ensure equity among urban, suburban, and greater Minnesota
schools.
(e) A school site must establish a
school leadership team responsible for developing school-specific programming
goals, assessing program needs, and overseeing the process of implementing
expanded programming at each covered site.
The school leadership team shall have between 12 to 15 members and shall
meet the following requirements:
(1) at least 30 percent of the members
are parents and 30 percent of the members are teachers at the school site and
must include the school principal and representatives from partner agencies;
and
(2) the school leadership team must be
responsible for overseeing the baseline analyses under paragraph (f). A school leadership team must have ongoing
responsibility for monitoring the development and implementation of full
service community school operations and programming at the school site and
shall issue recommendations to schools on a regular basis and summarized in an
annual report. These reports shall also
be made available to the public at the school site and on school and district
Web sites.
(f) School sites must complete a
baseline analysis prior to beginning programming as a full-service community
school. The analysis shall include:
(1) a baseline analysis of needs at the
school site, led by the school leadership team, which shall include the
following elements:
(i) identification of challenges facing
the school;
(ii) analysis of the student body,
including:
(A) number and percentage of students
with disabilities and needs of these students;
(B) number and percentage of students
who are English learners and the needs of these students;
(C) number of students who are homeless or highly mobile; and
(D) number and percentage of students
receiving free or reduced-price lunch and the needs of these students; and
(iii) analysis of enrollment and
retention rates for students with disabilities, English learners, homeless and
highly mobile students, and students receiving free or reduced-price lunch;
(iv) analysis of suspension and
expulsion data, including the justification for such disciplinary actions and
the degree to which particular populations, including, but not limited to,
students of color, students with disabilities, students who are English
learners, and students receiving free or reduced-price lunch are represented
among students subject to such actions;
(v) analysis of school achievement data
disaggregated by major demographic categories, including, but not limited to,
race, ethnicity, English learner status, disability status, and free or
reduced-price lunch status;
(vi)
analysis of current parent engagement strategies and their success; and
(vii) evaluation of the need for and
availability of wraparound services, including, but not limited to:
(A) mechanisms for meeting students'
social, emotional, and physical health needs, which may include coordination of
existing services as well as the development of new services based on student
needs; and
(B) strategies to create a safe and
secure school environment and improve school climate and discipline, such as
implementing a system of positive behavioral supports, and taking additional
steps to eliminate bullying;
(2) a baseline analysis of community
assets and a strategic plan for utilizing and aligning identified assets. This analysis should include, but is not
limited to, a documentation of individuals in the community, faith-based
organizations, community and neighborhood associations, colleges, hospitals,
libraries, businesses, and social service agencies who may be able to provide support
and resources; and
(3) a baseline analysis of needs in the
community surrounding the school, led by the school leadership team, including,
but not limited to:
(i) the need for high-quality, full-day
child care and early childhood education programs;
(ii) the need for physical and mental
health care services for children and adults; and
(iii) the need for job training and
other adult education programming.
(g) Each school site receiving funding
under this section must establish at least two of the following types of
programming:
(1) early childhood:
(i) early childhood education; and
(ii) child care services;
(2) academic:
(i) academic support and enrichment
activities, including expanded learning time;
(ii) summer or after-school enrichment and
learning experiences;
(iii) job training, internship
opportunities, and career counseling services;
(iv) programs that provide assistance
to students who have been truant, suspended, or expelled; and
(v) specialized instructional support
services;
(3) parental involvement:
(i) programs that promote parental
involvement and family literacy, including the Reading First and Early Reading
First programs authorized under part B of title I of the Elementary and
Secondary Education Act of 1965, United States Code, title 20, section 6361, et
seq.;
(ii)
parent leadership development activities; and
(iii) parenting education activities;
(4) mental and physical health:
(i) mentoring and other youth
development programs, including peer mentoring and conflict mediation;
(ii) juvenile crime prevention and
rehabilitation programs;
(iii) home visitation services by
teachers and other professionals;
(iv) developmentally appropriate
physical education;
(v) nutrition services;
(vi) primary health and dental care; and
(vii) mental health counseling services;
(5) community involvement:
(i) service and service-learning
opportunities;
(ii) adult education, including
instruction in English as a second language; and
(iii) homeless prevention services;
(6) positive discipline practices; and
(7) other programming designed to meet
school and community needs identified in the baseline analysis and reflected in
the full-service community school plan.
(h) The school leadership team at each
school site must develop a full-service community school plan detailing the
steps the school leadership team will take, including:
(1) timely establishment and consistent
operation of the school leadership team;
(2) maintenance of attendance records in
all programming components;
(3) maintenance of measurable data
showing annual participation and the impact of programming on the participating
children and adults;
(4) documentation of meaningful and
sustained collaboration between the school and community stakeholders, including
local governmental units, civic engagement organizations, businesses, and
social service providers;
(5) establishment and maintenance of
partnerships with institutions, such as universities, hospitals, museums, or
not-for-profit community organizations to further the development and
implementation of community school programming;
(6) ensuring compliance with the
district nondiscrimination policy; and
(7) plan for school leadership team
development.
Subd. 3. Full-service
community school review. (a)
Every three years, a full-service community school site must submit to the
commissioner, and make available at the school site and online, a report
describing efforts to integrate community school programming at each covered
school site and the effect of the transition to a full-service community school
on participating children and adults. This
report shall include, but is not limited to, the following:
(1)
an assessment of the effectiveness of the school site in development or
implementing the community school plan;
(2) problems encountered in the design
and execution of the community school plan, including identification of any
federal, state, or local statute or regulation impeding program implementation;
(3) the operation of the school
leadership team and its contribution to successful execution of the community
school plan;
(4) recommendations for improving
delivery of community school programming to students and families;
(5) the number and percentage of
students receiving community school programming who had not previously been
served;
(6) the number and percentage of
nonstudent community members receiving community school programming who had not
previously been served;
(7) improvement in retention among
students who receive community school programming;
(8) improvement in academic achievement
among students who receive community school programming;
(9) changes in student's readiness to
enter school, active involvement in learning and in their community, physical,
social and emotional health, and student's relationship with the school and
community environment;
(10) an accounting of anticipated local
budget savings, if any, resulting from the implementation of the program;
(11) improvements to the frequency or
depth of families' involvement with their children's education;
(12) assessment of community
stakeholder satisfaction;
(13) assessment of institutional
partner satisfaction;
(14) the ability, or anticipated
ability, of the school site and partners to continue to provide services in the
absence of future funding under this section;
(15) increases in access to services
for students and their families; and
(16) the degree of increased
collaboration among participating agencies and private partners.
(b) Reports submitted under this section
shall be evaluated by the commissioner with respect to the following criteria:
(1) the effectiveness of the school or
the community school consortium in implementing the full-service community
school plan, including the degree to which the school site navigated
difficulties encountered in the design and operation of the full-service
community school plan, including identification of any federal, state, or local
statute or regulation impeding program implementation;
(2)
the extent to which the project has produced lessons about ways to improve
delivery of community school programming to students;
(3) the degree to which there has been
an increase in the number or percentage of students and nonstudents receiving
community school programming;
(4) the degree to which there has been
an improvement in retention of students and improvement in academic achievement
among students receiving community school programming;
(5) local budget savings, if any,
resulting from the implementation of the program;
(6) the degree of community stakeholder
and institutional partner engagement;
(7) the ability, or anticipated ability,
of the school site and partners to continue to provide services in the absence
of future funding under this section;
(8) increases in access to services for
students and their families; and
(9) the degree of increased
collaboration among participating agencies and private partners.
Sec. 9. Minnesota Statutes 2014, section 124D.42, subdivision 8, is amended to read:
Subd. 8. Minnesota
reading corps program. (a) A
Minnesota reading corps program is established to provide ServeMinnesota
AmeriCorps members with a data-based problem-solving model of literacy
instruction to use in helping to train local Head Start program providers,
other prekindergarten program providers, and staff in schools with students in
kindergarten through grade 3 to evaluate and teach early literacy skills,
including comprehensive, scientifically based reading instruction under section
122A.06, subdivision 4, to children age 3 to grade 3. Priority shall be given to placing
AmeriCorps members in prekindergarten, kindergarten, and first grade programs
in any of the following: (1)
"Focus" or "Priority" schools under the multiple
measurements rating; or (2) federal School Improvement Grant recipients.
(b) Literacy programs under this subdivision must comply with the provisions governing literacy program goals and data use under section 119A.50, subdivision 3, paragraph (b).
(c) The commission must submit a biennial report to the committees of the legislature with jurisdiction over kindergarten through grade 12 education that records and evaluates program data to determine the efficacy of the programs under this subdivision.
Sec. 10. Minnesota Statutes 2014, section 124D.81, is amended to read:
124D.81
CONTINUATION OF AMERICAN INDIAN EDUCATION GRANTS AID.
Subdivision 1. Grants;
Procedures. Each fiscal year the
commissioner of education must make grants to no fewer than six American Indian
education programs. At least three
programs must be in urban areas and at least three must be on or near
reservations. The board of a local
district, a participating school or a group of boards may develop a proposal
for grants in support of American Indian education programs. Proposals (a) A school district,
charter school, or American Indian-controlled tribal contract or grant school
enrolling at least 20 American Indian students on October 1 of the previous
school year and operating an American Indian education program according to
section 124D.74 is eligible for Indian education aid if it meets the
requirements of this section. Programs
may provide for contracts for the provision of program components by
nonsectarian nonpublic, community, tribal, charter,
or alternative schools. The commissioner
shall prescribe the form and manner of application for grants aids,
and no grant aid shall be made for a proposal program
not complying with the requirements of sections 124D.71 to 124D.82.
Subd. 2. Plans. Each To qualify for aid, an
eligible district, charter school, or participating tribal
contract school submitting a proposal under subdivision 1 must
develop and submit with the proposal a plan for approval by the
Indian education director which that shall:
(a) Identify the measures to be used to meet the requirements of sections 124D.71 to 124D.82;
(b) Identify the activities, methods and programs to meet the identified educational needs of the children to be enrolled in the program;
(c) Describe how district goals and objectives as well as the objectives of sections 124D.71 to 124D.82 are to be achieved;
(d) Demonstrate that required and elective courses as structured do not have a discriminatory effect within the meaning of section 124D.74, subdivision 5;
(e) Describe how each school program will be organized, staffed, coordinated, and monitored; and
(f) Project expenditures for programs under sections 124D.71 to 124D.82.
Subd. 2a. American
Indian education aid. (a) The
American Indian education aid for an eligible district or tribal contract
school equals the greater of (1) the sum of $20,000 plus the product of $405
times the difference between the number of
American Indian students enrolled on October 1 of the previous school year and
20; or (2) if the district or school received a grant under this section for
fiscal year 2015, the amount of the grant for fiscal year 2015.
(b) Notwithstanding paragraph (a), the
American Indian education aid must not exceed the district or tribal contract
school's actual expenditure according to the approved plan under subdivision 2.
Subd. 3. Additional
requirements. Each district
receiving a grant aid under this section must each year conduct a
count of American Indian children in the schools of the district; test for
achievement; identify the extent of other educational needs of the children to
be enrolled in the American Indian education program; and classify the American
Indian children by grade, level of educational attainment, age and achievement. Participating schools must maintain records
concerning the needs and achievements of American Indian children served.
Subd. 4. Nondiscrimination; testing. In accordance with recognized professional standards, all testing and evaluation materials and procedures utilized for the identification, testing, assessment, and classification of American Indian children must be selected and administered so as not to be racially or culturally discriminatory and must be valid for the purpose of identifying, testing, assessing, and classifying American Indian children.
Subd. 5. Records. Participating schools and districts must keep records and afford access to them as the commissioner finds necessary to ensure that American Indian education programs are implemented in conformity with sections 124D.71 to 124D.82. Each school district or participating school must keep accurate, detailed, and separate revenue and expenditure accounts for pilot American Indian education programs funded under this section.
Subd. 6. Money from other sources. A district or participating school providing American Indian education programs shall be eligible to receive moneys for these programs from other government agencies and from private sources when the moneys are available.
Subd. 7. Exceptions. Nothing in sections 124D.71 to 124D.82 shall be construed as prohibiting a district or school from implementing an American Indian education program which is not in compliance with sections 124D.71 to 124D.82 if the proposal and plan for that program is not funded pursuant to this section.
EFFECTIVE
DATE. This section is
effective for revenue for fiscal year 2016 and later.
Sec. 11. Minnesota Statutes 2014, section 124D.83, subdivision 2, is amended to read:
Subd. 2. Revenue amount. An American Indian-controlled tribal contract or grant school that is located on a reservation within the state and that complies with the requirements in subdivision 1 is eligible to receive tribal contract or grant school aid. The amount of aid is derived by:
(1) multiplying the formula allowance under section 126C.10, subdivision 2, less $170, times the difference between (i) the resident pupil units as defined in section 126C.05, subdivision 6, in average daily membership, excluding section 126C.05, subdivision 13, and (ii) the number of pupils for the current school year, weighted according to section 126C.05, subdivision 1, receiving benefits under section 123B.42 or 123B.44 or for which the school is receiving reimbursement under section 124D.69;
(2) adding to the result in clause (1) an amount equal to the product of the formula allowance under section 126C.10, subdivision 2, less $300 times the tribal contract compensation revenue pupil units;
(3) subtracting from the result in clause (2) the amount of money allotted to the school by the federal government through Indian School Equalization Program of the Bureau of Indian Affairs, according to Code of Federal Regulations, title 25, part 39, subparts A to E, for the basic program as defined by section 39.11, paragraph (b), for the base rate as applied to kindergarten through twelfth grade, excluding small school adjustments and additional weighting, but not money allotted through subparts F to L for contingency funds, school board training, student training, interim maintenance and minor repair, interim administration cost, prekindergarten, and operation and maintenance, and the amount of money that is received according to section 124D.69;
(4) dividing the result in clause (3) by the sum of the resident pupil units in average daily membership, excluding section 126C.05, subdivision 13, plus the tribal contract compensation revenue pupil units; and
(5) multiplying the sum of the resident
pupil units, including section 126C.05, subdivision 13, in average daily membership plus the tribal contract compensation
revenue pupil units by the lesser of $1,500 or the result in clause (4).
EFFECTIVE
DATE. This section is
effective for revenue in fiscal year 2016 and later.
Sec. 12. Minnesota Statutes 2014, section 136A.162, is amended to read:
136A.162
CLASSIFICATION OF DATA.
(a) Except as provided in paragraphs (b) and (c), data on applicants for financial assistance collected and used by the office for student financial aid programs administered by that office, including the programs under sections 122A.80 and 122A.81, are private data on individuals as defined in section 13.02, subdivision 12.
(b) Data on applicants may be disclosed to the commissioner of human services to the extent necessary to determine eligibility under section 136A.121, subdivision 2, clause (5).
(c) The following data collected in the Minnesota supplemental loan program under section 136A.1701 may be disclosed to a consumer credit reporting agency only if the borrower and the cosigner give informed consent, according to section 13.05, subdivision 4, at the time of application for a loan:
(1) the lender-assigned borrower identification number;
(2) the name and address of borrower;
(3) the name and address of cosigner;
(4) the date the account is opened;
(5) the outstanding account balance;
(6) the dollar amount past due;
(7) the number of payments past due;
(8) the number of late payments in previous 12 months;
(9) the type of account;
(10) the responsibility for the account; and
(11) the status or remarks code.
Sec. 13. Minnesota Statutes 2014, section 256J.21, subdivision 2, is amended to read:
Subd. 2. Income exclusions. The following must be excluded in determining a family's available income:
(1) payments for basic care, difficulty of care, and clothing allowances received for providing family foster care to children or adults under Minnesota Rules, parts 9555.5050 to 9555.6265, 9560.0521, and 9560.0650 to 9560.0655, payments for family foster care for children under section 260C.4411 or chapter 256N, and payments received and used for care and maintenance of a third-party beneficiary who is not a household member;
(2) reimbursements for employment training received through the Workforce Investment Act of 1998, United States Code, title 20, chapter 73, section 9201;
(3) reimbursement for out-of-pocket expenses incurred while performing volunteer services, jury duty, employment, or informal carpooling arrangements directly related to employment;
(4) all educational assistance, including loan forgiveness, except the county agency must count graduate student teaching assistantships, fellowships, and other similar paid work as earned income and, after allowing deductions for any unmet and necessary educational expenses, shall count scholarships or grants awarded to graduate students that do not require teaching or research as unearned income;
(5) loans, regardless of purpose, from public or private lending institutions, governmental lending institutions, or governmental agencies;
(6) loans from private individuals, regardless of purpose, provided an applicant or participant documents that the lender expects repayment;
(7)(i) state income tax refunds; and
(ii) federal income tax refunds;
(8)(i) federal earned income credits;
(ii) Minnesota working family credits;
(iii) state homeowners and renters credits under chapter 290A; and
(iv) federal or state tax rebates;
(9) funds received for reimbursement, replacement, or rebate of personal or real property when these payments are made by public agencies, awarded by a court, solicited through public appeal, or made as a grant by a federal agency, state or local government, or disaster assistance organizations, subsequent to a presidential declaration of disaster;
(10) the portion of an insurance settlement that is used to pay medical, funeral, and burial expenses, or to repair or replace insured property;
(11) reimbursements for medical expenses that cannot be paid by medical assistance;
(12) payments by a vocational rehabilitation program administered by the state under chapter 268A, except those payments that are for current living expenses;
(13) in-kind income, including any payments directly made by a third party to a provider of goods and services;
(14) assistance payments to correct underpayments, but only for the month in which the payment is received;
(15) payments for short-term emergency needs under section 256J.626, subdivision 2;
(16) funeral and cemetery payments as provided by section 256.935;
(17) nonrecurring cash gifts of $30 or less, not exceeding $30 per participant in a calendar month;
(18) any form of energy assistance payment made through Public Law 97-35, Low-Income Home Energy Assistance Act of 1981, payments made directly to energy providers by other public and private agencies, and any form of credit or rebate payment issued by energy providers;
(19) Supplemental Security Income (SSI), including retroactive SSI payments and other income of an SSI recipient, except as described in section 256J.37, subdivision 3b;
(20) Minnesota supplemental aid, including retroactive payments;
(21) proceeds from the sale of real or personal property;
(22) adoption or kinship assistance payments under chapter 256N or 259A;
(23) state-funded family subsidy program payments made under section 252.32 to help families care for children with developmental disabilities, consumer support grant funds under section 256.476, and resources and services for a disabled household member under one of the home and community-based waiver services programs under chapter 256B;
(24) interest payments and dividends from property that is not excluded from and that does not exceed the asset limit;
(25) rent rebates;
(26) income earned by a minor caregiver, minor child through age 6, or a minor child who is at least a half-time student in an approved elementary or secondary education program;
(27) income earned by a caregiver under age 20 who is at least a half-time student in an approved elementary or secondary education program;
(28) MFIP child care payments under section 119B.05;
(29) all other payments made through MFIP to support a caregiver's pursuit of greater economic stability;
(30) income a participant receives related to shared living expenses;
(31) reverse mortgages;
(32) benefits provided by the Child Nutrition Act of 1966, United States Code, title 42, chapter 13A, sections 1771 to 1790;
(33) benefits provided by the women, infants, and children (WIC) nutrition program, United States Code, title 42, chapter 13A, section 1786;
(34) benefits from the National School Lunch Act, United States Code, title 42, chapter 13, sections 1751 to 1769e;
(35) relocation assistance for displaced persons under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, United States Code, title 42, chapter 61, subchapter II, section 4636, or the National Housing Act, United States Code, title 12, chapter 13, sections 1701 to 1750jj;
(36) benefits from the Trade Act of 1974, United States Code, title 19, chapter 12, part 2, sections 2271 to 2322;
(37) war reparations payments to Japanese Americans and Aleuts under United States Code, title 50, sections 1989 to 1989d;
(38) payments to veterans or their dependents as a result of legal settlements regarding Agent Orange or other chemical exposure under Public Law 101-239, section 10405, paragraph (a)(2)(E);
(39) income that is otherwise specifically excluded from MFIP consideration in federal law, state law, or federal regulation;
(40) security and utility deposit refunds;
(41) American Indian tribal land settlements excluded under Public Laws 98-123, 98-124, and 99-377 to the Mississippi Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs reservations and payments to members of the White Earth Band, under United States Code, title 25, chapter 9, section 331, and chapter 16, section 1407;
(42) all income of the minor parent's parents and stepparents when determining the grant for the minor parent in households that include a minor parent living with parents or stepparents on MFIP with other children;
(43) income of the minor parent's parents and stepparents equal to 200 percent of the federal poverty guideline for a family size not including the minor parent and the minor parent's child in households that include a minor parent living with parents or stepparents not on MFIP when determining the grant for the minor parent. The remainder of income is deemed as specified in section 256J.37, subdivision 1b;
(44) payments made to children eligible for relative custody assistance under section 257.85;
(45) vendor payments for goods and services made on behalf of a client unless the client has the option of receiving the payment in cash;
(46) the principal portion of a contract for deed payment;
(47) cash payments to individuals enrolled for full-time service as a volunteer under AmeriCorps programs including AmeriCorps VISTA, AmeriCorps State, AmeriCorps National, and AmeriCorps NCCC; and
(48) housing assistance grants under section 256J.35, paragraph (a).
Sec. 14. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:
Subd. 19b. Subtractions from federal taxable income. For individuals, estates, and trusts, there shall be subtracted from federal taxable income:
(1) net interest income on obligations of any authority, commission, or instrumentality of the United States to the extent includable in taxable income for federal income tax purposes but exempt from state income tax under the laws of the United States;
(2) if included in federal taxable income, the amount of any overpayment of income tax to Minnesota or to any other state, for any previous taxable year, whether the amount is received as a refund or as a credit to another taxable year's income tax liability;
(3) the amount paid to others, less the amount used to claim the credit allowed under section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and transportation of each qualifying child in attending an elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory attendance laws, which is not operated for profit, and which adheres to the provisions of the Civil Rights Act of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, "textbooks" includes books and other instructional materials and equipment purchased or leased for use in elementary and secondary schools in teaching only those subjects legally and commonly taught in public elementary and secondary schools in this state. Equipment expenses qualifying for deduction includes expenses as defined and limited in section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional books and materials used in the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship, nor does it include books or materials for, or transportation to, extracurricular activities including sporting events, musical or dramatic events, speech activities, driver's education, or similar programs. No deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicle to provide such transportation for a qualifying child. For purposes of the subtraction provided by this clause, "qualifying child" has the meaning given in section 32(c)(3) of the Internal Revenue Code;
(4) income as provided under section 290.0802;
(5) to the extent included in federal adjusted gross income, income realized on disposition of property exempt from tax under section 290.491;
(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) of the Internal Revenue Code in determining federal taxable income by an individual who does not itemize deductions for federal income tax purposes for the taxable year, an amount equal to 50 percent of the excess of charitable contributions over $500 allowable as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, under the provisions of Public Law 109-1 and Public Law 111-126;
(7) for individuals who are allowed a federal foreign tax credit for taxes that do not qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover of subnational foreign taxes for the taxable year, but not to exceed the total subnational foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, "federal foreign tax credit" means the credit allowed under section 27 of the Internal Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed under section 904(c) of the Internal Revenue Code minus national level foreign taxes to the extent they exceed the federal foreign tax credit;
(8) in each of the five tax years immediately following the tax year in which an addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, clause (12), in the case of a shareholder of an S corporation, minus the positive value of any net operating loss under section 172 of the Internal Revenue Code generated for the tax year of the addition. The resulting delayed depreciation cannot be less than zero;
(9) job opportunity building zone income as provided under section 469.316;
(10) to the extent included in federal taxable income, the amount of compensation paid to members of the Minnesota National Guard or other reserve components of the United States military for active service, including compensation for services performed under the Active Guard Reserve (AGR) program. For purposes of this clause, "active service" means (i) state active service as defined in section 190.05, subdivision 5a, clause (1); or (ii) federally funded state active service as defined in section 190.05, subdivision 5b, and "active service" includes service performed in accordance with section 190.08, subdivision 3;
(11) to the extent included in federal taxable income, the amount of compensation paid to Minnesota residents who are members of the armed forces of the United States or United Nations for active duty performed under United States Code, title 10; or the authority of the United Nations;
(12) an amount, not to exceed $10,000, equal to qualified expenses related to a qualified donor's donation, while living, of one or more of the qualified donor's organs to another person for human organ transplantation. For purposes of this clause, "organ" means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; "human organ transplantation" means the medical procedure by which transfer of a human organ is made from the body of one person to the body of another person; "qualified expenses" means unreimbursed expenses for both the individual and the qualified donor for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses may be subtracted under this clause only once; and "qualified donor" means the individual or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An individual may claim the subtraction in this clause for each instance of organ donation for transplantation during the taxable year in which the qualified expenses occur;
(13) in each of the five tax years immediately following the tax year in which an addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the case of a shareholder of a corporation that is an S corporation, minus the positive value of any net operating loss under section 172 of the Internal Revenue Code generated for the tax year of the addition. If the net operating loss exceeds the addition for the tax year, a subtraction is not allowed under this clause;
(14) to the extent included in the federal taxable income of a nonresident of Minnesota, compensation paid to a service member as defined in United States Code, title 10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);
(15) to the extent included in federal taxable income, the amount of national service educational awards received from the National Service Trust under United States Code, title 42, sections 12601 to 12604, for service in an approved Americorps National Service program;
(16) to the extent included in federal taxable income, discharge of indebtedness income resulting from reacquisition of business indebtedness included in federal taxable income under section 108(i) of the Internal Revenue Code. This subtraction applies only to the extent that the income was included in net income in a prior year as a result of the addition under subdivision 19a, clause (13);
(17) the amount of the net operating loss allowed under section 290.095, subdivision 11, paragraph (c);
(18) the amount of expenses not allowed for federal income tax purposes due to claiming the railroad track maintenance credit under section 45G(a) of the Internal Revenue Code;
(19) the amount of the limitation on itemized deductions under section 68(b) of the Internal Revenue Code;
(20) the amount of the phaseout of
personal exemptions under section 151(d) of the Internal Revenue Code; and
(21) to the extent included in federal
taxable income, the amount of qualified transportation fringe benefits
described in section 132(f)(1)(A) and (B) of the Internal Revenue Code. The subtraction is limited to the lesser of
the amount of qualified transportation fringe benefits received in excess of
the limitations under section 132(f)(2)(A) of the Internal Revenue Code for the
year or the difference between the maximum qualified parking benefits
excludable under section 132(f)(2)(B) of the Internal Revenue Code minus the
amount of transit benefits excludable under section 132(f)(2)(A) of the
Internal Revenue Code;
(22) to the extent included in federal
taxable income, the amount of any loan forgiveness under section 122A.80 for
the TeachMN program; and
(23) to the extent included in federal taxable income, the amount of any financial assistance paid under section 122A.81 for the stepping up for kids program.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 15. APPROPRIATIONS.
Subdivision 1. Department. The sums indicated in this section are
appropriated from the general fund to the Department of Education for the
fiscal years designated.
Subd. 2. Charter school building lease aid. For building lease aid under Minnesota Statutes, section 124D.11, subdivision 4:
|
|
$66,787,000
|
.
. . . . |
2016
|
|
|
$77,148,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$6,032,000 for 2015 and $60,755,000 for 2016.
The 2017 appropriation includes
$6,750,000 for 2016 and $70,398,000 for 2017.
Subd. 3. Achievement
and integration aid. For
integration aid under Minnesota Statutes, section 124D.862:
|
|
$65,539,000
|
.
. . . . |
2016
|
|
|
$71,464,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$6,382,000 for 2015 and $59,157,000 for 2016.
The 2017 appropriation includes
$6,573,000 for 2016 and $64,891,000 for 2017.
Subd. 4. Literacy
incentive aid. For literacy
incentive aid under Minnesota Statutes, section 124D.98:
|
|
$44,552,000
|
.
. . . . |
2016
|
|
|
$45,508,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$4,683,000 for 2015 and $39,869,000 for 2016.
The 2017 appropriation includes
$4,429,000 for 2016 and $41,079,000 for 2017.
Subd. 5. Interdistrict
desegregation or integration transportation grants. For interdistrict desegregation or
integration transportation grants under Minnesota Statutes, section 124D.87:
|
|
$15,023,000
|
.
. . . . |
2016
|
|
|
$15,825,000
|
.
. . . . |
2017
|
Subd. 6. Success
for the future. For American
Indian success for the future grants under Minnesota Statutes, section 124D.81:
|
|
$213,000
|
.
. . . . |
2016
|
The 2016 appropriation includes
$213,000 for 2015 and $0 for 2016.
Subd. 7. American
Indian education aid. For
American Indian education aid under Minnesota Statutes, section 124D.81,
subdivision 2a:
|
|
$9,281,000
|
.
. . . . |
2016
|
|
|
$9,665,000
|
.
. . . . |
2017
|
Subd. 8. American
Indian teacher preparation grants. For
joint grants to assist American Indian people to become teachers under
Minnesota Statutes, section 122A.63:
|
|
$280,000
|
.
. . . . |
2016
|
|
|
$280,000
|
.
. . . . |
2017
|
Subd. 9. Tribal
contract schools. For tribal
contract school aid under Minnesota Statutes, section 124D.83:
|
|
$4,457,000
|
.
. . . . |
2016
|
|
|
$5,201,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$204,000 for 2015 and $4,253,000 for 2016.
The 2017 appropriation includes
$688,000 for 2016 and $4,513,000 for 2017.
Subd. 10. Early
childhood programs at tribal schools.
For early childhood family education programs at tribal contract
schools under Minnesota Statutes, section 124D.83, subdivision 4:
|
|
$68,000
|
.
. . . . |
2016
|
|
|
$68,000
|
. . . . . |
2017 |
Subd. 11. Statewide
testing and reporting system. For
the statewide testing and reporting system under Minnesota Statutes, section
120B.30:
|
|
$21,001,000
|
.
. . . . |
2016
|
|
|
$21,001,000
|
.
. . . . |
2017
|
Any balance in the first year does not
cancel but is available in the second year.
Subd. 12. Examination
fees; teacher training and support programs. (a) For students' advanced placement
and international baccalaureate examination fees under Minnesota Statutes,
section 120B.13, subdivision 3, and the training and related costs for teachers
and other interested educators under Minnesota Statutes, section 120B.13,
subdivision 1:
|
|
$4,500,000
|
.
. . . . |
2016
|
|
|
$4,500,000
|
.
. . . . |
2017
|
(b) The advanced placement program
shall receive 75 percent of the appropriation each year and the international
baccalaureate program shall receive 25 percent of the appropriation each year. The department, in consultation with
representatives of the advanced placement and international baccalaureate
programs selected by the Advanced Placement Advisory Council and IBMN,
respectively, shall determine the amounts of the expenditures each year for
examination fees and training and support programs for each program.
(c) Notwithstanding Minnesota Statutes,
section 120B.13, subdivision 1, at least $500,000 each year is for teachers to
attend subject matter summer training programs and follow-up support workshops
approved by the advanced placement or international baccalaureate programs. The amount of the subsidy for each teacher
attending an advanced placement or international baccalaureate summer training
program or workshop shall be the same. The
commissioner shall determine the payment process and the amount of the subsidy.
(d) The commissioner shall pay all
examination fees for all students of low-income families under Minnesota
Statutes, section 120B.13, subdivision 3, and to the extent of available
appropriations shall also pay examination fees for students sitting for an
advanced placement examination, international baccalaureate examination, or
both.
Any balance in the first year does not
cancel but is available in the second year.
Subd. 13. Concurrent
enrollment programs. For
concurrent enrollment programs under Minnesota Statutes, section 124D.091:
|
|
$5,000,000
|
.
. . . . |
2016
|
|
|
$8,000,000
|
.
. . . . |
2017
|
If the appropriation is insufficient,
the commissioner must proportionately reduce the aid payment to each district.
Any balance in the first year does not
cancel but is available in the second year.
Subd. 14. Collaborative
urban educator. For the
collaborative urban educator grant program:
|
|
$780,000
|
.
. . . . |
2016
|
|
|
$780,000
|
. . . . . |
2017 |
$195,000
each year is for the Southeast Asian teacher program at Concordia University, St. Paul;
$175,000 each year is for the collaborative urban educator program at the
University of St. Thomas; $195,000 each year is for the Center for
Excellence in Urban Teaching at Hamline University; and $195,000 each year is
for the East Africa Student to Teacher program at Augsburg College.
Any balance in the first year does not
cancel but is available in the second year.
Each institution shall prepare for the
legislature, by January 15 of each year, a detailed report regarding the funds
used. The report must include the number
of teachers prepared as well as the diversity for each cohort of teachers
produced.
Subd. 15. ServeMinnesota
program. For funding
ServeMinnesota programs under Minnesota Statutes, sections 124D.37 to 124D.45:
|
|
$900,000
|
.
. . . . |
2016
|
|
|
$900,000
|
.
. . . . |
2017
|
A grantee organization may provide
health and child care coverage to the dependents of each participant enrolled
in a full-time ServeMinnesota program to the extent such coverage is not
otherwise available.
Subd. 16. Student
organizations. For student
organizations:
|
|
$725,000
|
.
. . . . |
2016
|
|
|
$725,000
|
.
. . . . |
2017
|
$96,000 each year is for student
organizations serving health occupations.
$43,000 each year is for student
organizations serving service occupations.
$100,000 each year is for student
organizations serving trade and industry occupations.
$95,000 each year is for student
organizations serving business occupations.
$150,000 each year is for student
organizations serving agriculture occupations.
$142,000 each year is for student
organizations serving family and consumer science occupations.
$109,000 each year is for student
organizations serving marketing occupations.
$40,000 each year is for the Minnesota
Foundation for Student Organizations.
Any balance in the first year does not
cancel but is available in the second year.
Subd. 17. Early
childhood literacy programs. For
early childhood literacy programs under Minnesota Statutes, section 119A.50,
subdivision 3:
|
|
$9,375,000
|
.
. . . . |
2016
|
|
|
$9,375,000
|
.
. . . . |
2017
|
Any balance in the first year does not cancel
but is available in the second year.
Subd. 18. Minnesota
math corps program. For the
Minnesota math corps program under Minnesota Statutes, section 124D.42,
subdivision 9:
|
|
$250,000
|
.
. . . . |
2016
|
|
|
$250,000
|
.
. . . . |
2017
|
Any unexpended balance in the first
year does not cancel but is available in the second year.
Subd. 19. Alternative
compensation. For alternative
teacher compensation aid under Minnesota Statutes, section 122A.415,
subdivision 4:
|
|
$78,331,000
|
.
. . . . |
2016
|
|
|
$77,647,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$7,766,000 for 2015 and $70,565,000 for 2016.
The 2017 appropriation includes
$7,840,000 for 2016 and $69,807,000 for 2017.
Subd. 20. Starbase
MN. For a grant to Starbase
MN for rigorous science, technology, engineering, and math (STEM) program
providing students in grades 4 to 6 with a multisensory learning experience and
a hands-on curriculum in an aerospace environment using state-of-the-art
technology:
|
|
$500,000
|
.
. . . . |
2016
|
|
|
$500,000
|
.
. . . . |
2017
|
Any balance in the first year does not
cancel and is available in the second year.
Subd. 21. Civic
education grants. For grants
to the Minnesota Civic Education Coalition:
Kids Voting St. Paul, Learning Law and Democracy Foundation, and
YMCA Youth in Government to provide civic education programs for Minnesota
youth age 18 and younger. Civic
education is the study of constitutional principles and the democratic
foundation of our national, state, and local institutions and the study of
political processes and structures of government, grounded in the understanding
of constitutional government under the rule of law:
|
|
$125,000
|
.
. . . . |
2016
|
|
|
$125,000
|
.
. . . . |
2017
|
Any balance in the first year does not
cancel and is available in the second year.
Subd. 22. Teacher
development and evaluation. For
teacher development and evaluation revenue under Laws 2014, chapter 312,
article 16, section 16, subdivision 7:
|
|
$10,000,000
|
.
. . . . |
2016
|
|
|
$10,000,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$1,000,000 for 2015 and $9,000,000 for 2016.
The 2017 appropriation includes
$1,000,000 for 2016 and $9,000,000 for 2017.
Subd. 23.
|
|
$500,000
|
.
. . . . |
2016
|
|
|
$500,000
|
.
. . . . |
2017
|
Any balance in the first year does not
cancel and is available in the second year.
Subd. 24. TeachMN. For the TeachMN account under
Minnesota Statutes, section 122A.80, subdivision 2:
|
|
$10,000,000
|
.
. . . . |
2016
|
|
|
$10,000,000
|
.
. . . . |
2017
|
Up to six percent of the amount each
year may be used for administrative costs of the Department of Education and
the Office of Higher Education for administering the TeachMN loan program.
$9,827,000 in fiscal year 2016 and
$9,867,000 in fiscal year 2017 are for a transfer to the Office of Higher
Education for loan disbursement and administrative costs.
Unused funds appropriated to the
Department of Education and transferred to the Office of Higher Education in a
given fiscal year are carried over for the TeachMN loan program and program and
administrative costs in future years.
Subd. 25. Stepping
up for kids. For a transfer
to the Office of Higher Education for the stepping up for kids financial
assistance account under Minnesota Statutes, section 122A.81, subdivision 2:
|
|
$2,000,000
|
.
. . . . |
2016
|
|
|
$2,000,000
|
.
. . . . |
2017
|
Up to six percent of the amount each
year may be used for administrative costs of the Office of Higher Education to
administer the stepping up for kids financial assistance program.
Unused funds appropriated to the
Department of Education and transferred to the Office of Higher Education in a
given fiscal year are carried over for stepping up for kids financial
assistance and program and administrative costs in future years.
Subd. 26. STEM
grants. For school districts
to provide STEM-based courses:
|
|
$1,000,000
|
.
. . . . |
2016
|
|
|
$1,000,000
|
.
. . . . |
2017
|
The commissioner must determine the form
and manner of application and award criteria.
Grant awards are limited to $50,000 per course. Any balance in the first year does not cancel
but is available in the second year of the biennium.
This is a onetime appropriation.
Subd. 27. Teacher-powered
school grants. For grants to
teacher-powered schools under Minnesota Statutes, section 123B.045, subdivision
7:
|
|
$1,000,000
|
.
. . . . |
2016
|
|
|
$1,000,000
|
.
. . . . |
2017
|
The base appropriation in fiscal year 2018
is $0. Any balance in the first year
does not cancel but is available in the second year.
Subd. 28. Full-service
community schools. For
full-service community schools under Minnesota Statutes, section 124D.231:
|
|
$2,000,000
|
.
. . . . |
2016
|
|
|
$2,000,000
|
.
. . . . |
2017
|
This is a onetime appropriation. Any balance in the first year does not cancel
but is available in the second year.
Subd. 29. Northwestern
Online College in the High School program.
For the Northwestern Online College in the High School program:
|
|
$50,000
|
.
. . . . |
2016
|
|
|
$50,000
|
.
. . . . |
2017
|
This is a onetime appropriation. Any balance from the first year may carry
forward into the second year.
Subd. 30. School
counselors. For school
counseling aid:
|
|
$8,000,000
|
.
. . . . |
2017
|
Beginning fiscal year 2017, a school
district is eligible for school counseling aid equal to $8,000,000 times the
ratio of its number of full-time equivalent licensed school counselors employed
or under contract to the school district to the number of full-time equivalent
licensed school counselors employed or under contract by school districts in
the state.
Sec. 16. REPEALER.
Minnesota Statutes 2014, section
122A.63, subdivisions 3, 7, and 8, are repealed for fiscal year 2016 and later.
ARTICLE 3
SPECIAL EDUCATION
Section 1. Minnesota Statutes 2014, section 125A.0942, subdivision 3, is amended to read:
Subd. 3. Physical holding or seclusion. (a) Physical holding or seclusion may be used only in an emergency. A school that uses physical holding or seclusion shall meet the following requirements:
(1) physical holding or seclusion is the least intrusive intervention that effectively responds to the emergency;
(2) physical holding or seclusion is not used to discipline a noncompliant child;
(3) physical holding or seclusion ends when the threat of harm ends and the staff determines the child can safely return to the classroom or activity;
(4) staff directly observes the child while physical holding or seclusion is being used;
(5) each time physical holding or seclusion is used, the staff person who implements or oversees the physical holding or seclusion documents, as soon as possible after the incident concludes, the following information:
(i) a description of the incident that led to the physical holding or seclusion;
(ii) why a less restrictive measure failed or was determined by staff to be inappropriate or impractical;
(iii) the time the physical holding or seclusion began and the time the child was released; and
(iv) a brief record of the child's behavioral and physical status;
(6) the room used for seclusion must:
(i) be at least six feet by five feet;
(ii) be well lit, well ventilated, adequately heated, and clean;
(iii) have a window that allows staff to directly observe a child in seclusion;
(iv) have tamperproof fixtures, electrical switches located immediately outside the door, and secure ceilings;
(v) have doors that open out and are unlocked, locked with keyless locks that have immediate release mechanisms, or locked with locks that have immediate release mechanisms connected with a fire and emergency system; and
(vi) not contain objects that a child may use to injure the child or others;
(7) before using a room for seclusion, a school must:
(i) receive written notice from local authorities that the room and the locking mechanisms comply with applicable building, fire, and safety codes; and
(ii) register the room with the commissioner, who may view that room; and
(8) until August 1, 2015, a school district may use prone restraints with children age five or older if:
(i) the district has provided to the department a list of staff who have had specific training on the use of prone restraints;
(ii) the district provides information on the type of training that was provided and by whom;
(iii) only staff who received specific training use prone restraints;
(iv) each incident of the use of prone restraints is reported to the department within five working days on a form provided by the department; and
(v) the district, before using prone restraints, must review any known medical or psychological limitations that contraindicate the use of prone restraints.
The department must collect data on districts' use of prone restraints and publish the data in a readily accessible format on the department's Web site on a quarterly basis.
(b) By February 1, 2015, and annually
thereafter, stakeholders must may, as necessary, recommend to the
commissioner specific and measurable implementation and outcome goals for
reducing the use of restrictive procedures and the commissioner must submit to
the legislature a report on districts' progress in reducing the use of
restrictive procedures that recommends how to further reduce these procedures
and eliminate the use of prone
restraints. The statewide plan includes the following components: measurable goals; the resources, training, technical assistance, mental health services, and collaborative efforts needed to significantly reduce districts' use of prone restraints; and recommendations to clarify and improve the law governing districts' use of restrictive procedures. The commissioner must consult with interested stakeholders when preparing the report, including representatives of advocacy organizations, special education directors, teachers, paraprofessionals, intermediate school districts, school boards, day treatment providers, county social services, state human services department staff, mental health professionals, and autism experts. By June 30 each year, districts must report summary data on their use of restrictive procedures to the department, in a form and manner determined by the commissioner. The summary data must include information about the use of restrictive procedures, including use of reasonable force under section 121A.582.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 125A.76, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For the purposes of this section and section 125A.79, the definitions in this subdivision apply.
(b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. For the purposes of computing basic revenue pursuant to this section, each child with a disability shall be counted as prescribed in section 126C.05, subdivision 1.
(c) "Essential personnel" means teachers, cultural liaisons, related services, and support services staff providing services to students. Essential personnel may also include special education paraprofessionals or clericals providing support to teachers and students by preparing paperwork and making arrangements related to special education compliance requirements, including parent meetings and individualized education programs. Essential personnel does not include administrators and supervisors.
(d) "Average daily membership" has the meaning given it in section 126C.05.
(e) "Program growth factor" means 1.046 for fiscal years 2012 through 2015, 1.0 for fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the program growth factor for the previous year for fiscal year 2018 and later.
(f) "Nonfederal special education expenditure" means all direct expenditures that are necessary and essential to meet the district's obligation to provide special instruction and services to children with a disability according to sections 124D.454, 125A.03 to 125A.24, 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by the department under section 125A.75, subdivision 4, excluding expenditures:
(1) reimbursed with federal funds;
(2) reimbursed with other state aids under this chapter;
(3) for general education costs of serving students with a disability;
(4) for facilities;
(5) for pupil transportation; and
(6) for postemployment benefits.
(g) "Old formula special education expenditures" means expenditures eligible for revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.
(h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy for the Blind, expenditures under paragraphs (f) and (g) are limited to the salary and fringe benefits of one-to-one instructional and behavior management aides and one-to-one licensed, certified professionals assigned to a child attending the academy, if the aides or professionals are required by the child's individualized education program.
(i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year 2014 and 2.27 percent for fiscal year 2015.
(j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48 for fiscal year 2015.
(k) "Special education aid increase
limit" means $80 for fiscal year 2016, $100 $160 for fiscal
year 2017, $204 for fiscal year 2018 and, for fiscal year 2018 2019
and later, the sum of the special education aid increase limit for the previous
fiscal year and $40 $44.
Sec. 3. Minnesota Statutes 2014, section 125A.76, subdivision 2a, is amended to read:
Subd. 2a. Special
education initial aid. For fiscal
year 2016 and later, A district's special education initial aid equals the
sum of:
(1) the least of 62 percent for fiscal year 2016 or 70 percent for fiscal year 2017 and later of the district's old formula special education expenditures for the prior fiscal year, excluding pupil transportation expenditures, 50 percent for fiscal year 2016 or 54 percent for fiscal year 2017 and later of the district's nonfederal special education expenditures for the prior year, excluding pupil transportation expenditures, or 56 percent for fiscal year 2016 or 60 percent for fiscal year 2017 and later of the product of the sum of the following amounts, computed using prior fiscal year data, and the program growth factor:
(i) the product of the district's average daily membership served and the sum of:
(A) $450; plus
(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1 who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
(C) .008 times the district's average daily membership served; plus
(ii) $10,400 times the December 1 child count for the primary disability areas of autism spectrum disorders, developmental delay, and severely multiply impaired; plus
(iii) $18,000 times the December 1 child count for the primary disability areas of deaf and hard-of-hearing and emotional or behavioral disorders; plus
(iv) $27,000 times the December 1 child count for the primary disability areas of developmentally cognitive mild-moderate, developmentally cognitive severe-profound, physically impaired, visually impaired, and deafblind; plus
(2) the cost of providing transportation services for children with disabilities under section 123B.92, subdivision 1, paragraph (b), clause (4).
Sec. 4. Minnesota Statutes 2014, section 125A.79, subdivision 1, is amended to read:
Subdivision 1. Definitions. For the purposes of this section, the definitions in this subdivision apply.
(a) "Unreimbursed old formula special education expenditures" means:
(1) old formula special education expenditures for the prior fiscal year; minus
(2) for fiscal years 2014 and 2015, the sum of the special education aid under section 125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education initial aid under section 125A.76, subdivision 2a; minus
(3) for fiscal year 2016 and later, the amount of general education revenue, excluding local optional revenue, plus local optional aid and referendum equalization aid for the prior fiscal year attributable to pupils receiving special instruction and services outside the regular classroom for more than 60 percent of the school day for the portion of time the pupils receive special instruction and services outside the regular classroom, excluding portions attributable to district and school administration, district support services, operations and maintenance, capital expenditures, and pupil transportation.
(b) "Unreimbursed nonfederal special education expenditures" means:
(1) nonfederal special education expenditures for the prior fiscal year; minus
(2) special education initial aid under section 125A.76, subdivision 2a; minus
(3) the amount of general education revenue and referendum equalization aid for the prior fiscal year attributable to pupils receiving special instruction and services outside the regular classroom for more than 60 percent of the school day for the portion of time the pupils receive special instruction and services outside of the regular classroom, excluding portions attributable to district and school administration, district support services, operations and maintenance, capital expenditures, and pupil transportation.
(c) "General revenue" for a school district means the sum of the general education revenue according to section 126C.10, subdivision 1, excluding transportation sparsity revenue, local optional revenue, and total operating capital revenue. "General revenue" for a charter school means the sum of the general education revenue according to section 124D.11, subdivision 1, and transportation revenue according to section 124D.11, subdivision 2, excluding referendum equalization aid, transportation sparsity revenue, and operating capital revenue.
Sec. 5. Minnesota Statutes 2014, section 125A.79, subdivision 5, is amended to read:
Subd. 5. Excess
cost aid. (a) For fiscal year
2016 and later, a district's excess cost aid equals the greater of:
(1) 56 percent of the difference between (i) the district's unreimbursed nonfederal special education expenditures and (ii) 7.0 percent of the district's general revenue;
(2) 62 percent of the difference between (i) the district's unreimbursed old formula special education expenditures and (ii) 2.5 percent of the district's general revenue; or
(3) zero.
(b)
For fiscal year 2017 and later, a district's excess cost aid equals the greater
of:
(1) 60 percent of the difference between
(i) the district's unreimbursed nonfederal special education expenditures and
(ii) 7.0 percent of the district's general revenue for fiscal year 2017 or 6.8
percent for fiscal year 2018 and later;
(2) 70 percent for fiscal year 2017, 71
percent for fiscal year 2018, and 72 percent for fiscal year 2019 and later of
the difference between (i) the district's unreimbursed old formula special
education expenditures and (ii) 2.23 percent for fiscal year 2017 and two
percent for fiscal year 2018 and later of the district's general revenue; or
(3) zero.
Sec. 6. APPROPRIATIONS.
Subdivision 1. Department
of Education. The sums
indicated in this section are appropriated from the general fund to the
Department of Education for the fiscal years designated.
Subd. 2. Special
education; regular. For
special education aid under Minnesota Statutes, section 125A.75:
|
|
$1,170,508,000
|
.
. . . . |
2016
|
|
|
$1,269,172,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$137,932,000 for 2015 and $1,032,576,000 for 2016.
The 2017 appropriation includes
$145,356,000 for 2016 and $1,123,816,000 for 2017.
Subd. 3. Aid
for children with disabilities. For
aid under Minnesota Statutes, section 125A.75, subdivision 3, for children with
disabilities placed in residential facilities within the district boundaries
for whom no district of residence can be determined:
|
|
$1,406,000
|
.
. . . . |
2016
|
|
|
$1,629,000
|
.
. . . . |
2017
|
If the appropriation for either year is
insufficient, the appropriation for the other year is available.
Subd. 4. Travel
for home-based services. For
aid for teacher travel for home-based services under Minnesota Statutes,
section 125A.75, subdivision 1:
|
|
$361,000
|
.
. . . . |
2016
|
|
|
$371,000
|
.
. . . . |
2017
|
The 2016 appropriation includes $35,000
for 2015 and $326,000 for 2016.
The 2017 appropriation includes $36,000
for 2016 and $335,000 for 2017.
Subd. 5. Court-placed
special education revenue. For
reimbursing serving school districts for unreimbursed eligible expenditures
attributable to children placed in the serving school district by court action
under Minnesota Statutes, section 125A.79, subdivision 4:
|
|
$56,000
|
.
. . . . |
2016
|
|
|
$57,000 |
. . . . . |
2017 |
Subd. 6. Special
education out-of-state tuition. For
special education out-of-state tuition according to Minnesota Statutes, section
125A.79, subdivision 8:
|
|
$250,000
|
.
. . . . |
2016
|
|
|
$250,000
|
.
. . . . |
2017
|
Subd. 7. Positive
Behavioral Interventions and Supports (PBIS). For implementation of schoolwide
Positive Behavioral Interventions and Supports (PBIS) in schools and districts
throughout Minnesota:
|
|
$2,300,000
|
.
. . . . |
2016
|
|
|
$2,300,000
|
.
. . . . |
2017
|
Any balance in the first year does not
cancel and is available in the second year.
Subd. 8. Training
and technical assistance to reduce district use of seclusion and restraint. (a) For providing school districts
with training and technical assistance to reduce district use of seclusion and
restraint on students with complex needs:
|
|
$750,000
|
.
. . . . |
2016
|
(b) Of this appropriation, $500,000 is
available to the commissioner to reimburse school districts for the cost of hiring experts to provide staff training in
reducing district use of seclusion and restraint on students with complex needs.
(c) Of this appropriation, $250,000 is
available to the commissioner for the costs of providing specialized training
and assistance to school districts with a high use of seclusion and restraint
on students with complex needs.
(d) The commissioner may contract with
experts from intermediate school district teams or level four programs to
provide the specialized training and technical assistance.
(e) Any funds unexpended in fiscal year
2016 do not cancel but carry forward into the next fiscal year.
ARTICLE 4
FACILITIES AND TECHNOLOGY
Section 1. Minnesota Statutes 2014, section 123A.482, is amended to read:
123A.482
JOINT POWERS COOPERATIVE FACILITY PROGRAM.
Subdivision 1. Schools may be jointly operated. Two or more member school districts of Education Innovation Partners Cooperative Center No. 6091 may agree to jointly operate a secondary facility, or otherwise agree to a qualifying cooperative program under subdivision 1a. The districts may choose to operate the facility according to a joint powers agreement under section 123A.78 or 471.59.
Subd. 1a. Qualifying
cooperative program. A
"qualifying cooperative program" means a program operated through a
joint powers agreement that utilizes technology and other options to increase
the availability and number of curriculum offerings for students.
Subd. 2. Expanded program offerings. A qualifying cooperative program under subdivision 1a, or a jointly operated secondary program seeking funding under section 123A.485 must demonstrate to the commissioner's satisfaction that the jointly operated program provides enhanced learning opportunities and broader curriculum offerings to the students attending that program. The commissioner must approve or disapprove a cooperative secondary program or qualifying cooperative program within 60 days of receipt of an application.
Subd. 3. Transfer of employees. If an employee is transferred between two employer members of the joint powers agreement under this section, the employee's length of service under section 122A.40, subdivision 5, remains uninterrupted. The employee shall receive credit on the receiving district's salary schedule for the employee's educational attainment and years of continuous service in the sending district, or shall receive a comparable salary, whichever is greater. The employee shall receive credit for accrued sick leave and rights to severance benefits as if the employee had been employed by the receiving district during the employee's years of employment in the sending district.
Subd. 4. Revenue. An approved program that is jointly
operated under this section is eligible for aid under section 123A.485 and
qualifies for a facilities grant under sections 123A.44 to 123A.446.
Subd. 5. Duty to maintain elementary and secondary schools met. A school district operating a qualifying cooperative program or a joint facility under this section meets the requirements of section 123A.64.
Subd. 6. Estimated market value limit exclusion. Bonds for a cooperative facility operated under this section or a qualifying cooperative program approved under this section issued by a member school district are not subject to the net debt limit under section 475.53, subdivision 4.
Subd. 7. Allocation of levy authority for joint facility. For purposes of determining each member district's school levy, a qualifying cooperative program or a jointly operated secondary program may allocate program costs to each member district according to the joint powers agreement and each member district may include those costs in its tax levy. The joint powers agreement may choose to allocate costs on any basis adopted as part of the joint powers agreement.
Subd. 8. Effect of consolidation. The joint powers agreement may allow member school districts that choose to consolidate to continue to certify levies separately based on each component district's characteristics.
Subd. 9. Bonds. A joint powers district formed under this
section may issue bonds according to section 123A.78 or its member districts
may issue bonds individually after complying with this subdivision. The joint powers board must submit the
project for review and comment under section 123B.71. The joint powers board must hold a hearing on
the proposal. If the bonds are not
issued under section 123A.78, each member district of the joint powers district
must submit the question of authorizing borrowing of funds for the project to
the voters of the district at a special election. The question submitted shall state the total
amount of funding needed from that district.
The member district may issue the bonds according to chapter 475 and certify
the levy required by section 475.61 only if a majority of those voting on the
question in that district vote in the affirmative and only after the board has
adopted a resolution pledging the full faith and credit of that unit. The resolution must irrevocably commit that
unit to pay an agreed-upon share of any debt levy shortages that, together with
other funds available, would allow the member school board to pay the principal
and interest on the obligations. The
clerk of the joint powers board must certify the vote of any bond elections to
the commissioner. Bonds issued under
this section first qualify for debt service equalization aid in fiscal year 2018
2020.
Subd. 10. Election. A district entering into a joint powers agreement under this section may conduct a referendum seeking approval for a new facility. This election may be held separately or at the same time as a bond election under subdivision 9. If the election is held at the same time, the questions may be asked separately or as a conjunctive question. The question must be approved by a majority of those voting on the question. If asked separately and the question fails, a district may not proceed with the sale of bonds according to subdivision 9.
EFFECTIVE
DATE. This section is effective
July 1, 2015.
Sec. 2. Minnesota Statutes 2014, section 123B.57, is amended to read:
123B.57
CAPITAL EXPENDITURE; HEALTH AND SAFETY.
Subdivision 1. Health
and safety revenue application. (a)
To receive health and safety revenue for any fiscal year a district must submit
to the commissioner a capital expenditure health and safety revenue application
by the date determined by the commissioner.
The application must include a health and safety budget adopted and
confirmed by the school district board as being consistent with the district's
health and safety policy under subdivision 2.
The budget must include the estimated cost of the program per Uniform
Financial Accounting and Reporting Standards (UFARS) finance code, by fiscal
year. Upon approval through the adoption
of a resolution by each of an intermediate district's member school district
boards and the approval of the Department of Education, a school district may
include its proportionate share of the costs of health and safety projects for
an intermediate district in its application.
(b) Health and safety projects with an
estimated cost of $500,000 or more per site are not eligible for health and
safety revenue. Health and safety
projects with an estimated cost of $500,000 or more per site that meet all
other requirements for health and safety funding, are eligible for alternative
facilities bonding and levy revenue according to section 123B.59. A school board shall not separate portions of
a single project into components to qualify for health and safety revenue, and
shall not combine unrelated projects into a single project to qualify for
alternative facilities bonding and levy revenue.
(c) The commissioner of education shall
not make eligibility for health and safety revenue contingent on a district's
compliance status, level of program development, or training. The commissioner shall not mandate additional
performance criteria such as training, certifications, or compliance
evaluations as a prerequisite for levy approval.
Subd. 2. Health
and safety policy. To qualify
for health and safety revenue, a school board must adopt a health and safety
policy. The policy must include
provisions for implementing a health and safety program that complies with
health, safety, and environmental regulations and best practices including
indoor air quality management.
Subd. 3. Health
and safety revenue. A
district's health and safety revenue for a fiscal year equals the district's
alternative facilities levy under section 123B.59, subdivision 5, paragraph
(b), plus the greater of zero or:
(1) the sum of (a) the total approved cost
of the district's hazardous substance plan for fiscal years 1985 through 1989,
plus (b) the total approved cost of the district's health and safety program
for fiscal year 1990 through the fiscal year to which the levy is attributable,
excluding expenditures funded with bonds issued under section 123B.59 or
123B.62, or chapter 475; certificates of indebtedness or capital notes under
section 123B.61; levies under section 123B.58, 123B.59, 123B.63, or 126C.40,
subdivision 1 or 6; and other federal, state, or local revenues, minus
(2) the sum of (a) the district's total
hazardous substance aid and levy for fiscal years 1985 through 1989 under
sections 124.245 and 275.125, subdivision 11c, plus (b) the district's health
and safety revenue under this subdivision, for years before the fiscal year to
which the levy is attributable.
Subd. 4. Health
and safety levy. To receive
health and safety revenue, a district may levy an amount equal to the
district's health and safety revenue as defined in subdivision 3 multiplied by
the lesser of one, or the ratio of the quotient derived by dividing the
adjusted net tax capacity of the district for the year preceding the year the
levy is certified by the adjusted pupil units in the district for the school
year to which the levy is attributable, to $3,165.
Subd. 5. Health
and safety aid. A district's
health and safety aid is the difference between its health and safety revenue
and its health and safety levy. If a
district does not levy the entire amount permitted, health and safety aid must
be reduced in proportion to the actual amount levied. Health and safety aid may not be reduced as a
result of reducing a district's health and safety levy according to section
123B.79.
Subd. 6. Uses
of Health and safety revenue capital projects. (a) Health and safety revenue may be
used only for approved capital projects may include expenditures
necessary for the correction of fire and life safety hazards; design, purchase,
installation, maintenance, and inspection of fire protection and alarm
equipment; purchase or construction of appropriate facilities for the storage
of combustible and flammable materials; inventories and facility modifications
not related to a remodeling project to comply with lab safety requirements
under section 121A.31; inspection, testing, repair, removal or encapsulation,
and disposal of asbestos-containing building materials; cleanup and disposal of
polychlorinated biphenyls; cleanup and disposal of hazardous and infectious
wastes; cleanup, removal, disposal, and repairs related to storing heating fuel
or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel,
as defined in section 296A.01; correction of occupational safety and health
administration regulated hazards; indoor air quality inspections,
investigations, and testing; mold abatement; upgrades or replacement of
mechanical ventilation systems to meet American Society of Heating,
Refrigerating and Air Conditioning Engineers standards and State Mechanical
Code; design, materials, and installation of local exhaust ventilation systems,
including required make-up air for controlling regulated hazardous substances;
correction of Department of Health Food Code violations; correction of swimming
pool hazards excluding depth correction; playground safety inspections, repair
of unsafe outdoor playground equipment, and the installation of impact
surfacing materials; bleacher repair or rebuilding to comply with the order of
a building code inspector under section 326B.112; testing and mitigation of
elevated radon hazards; lead testing; copper in water testing; cleanup after
major weather-related disasters or flooding; reduction of excessive organic and
inorganic levels in wells and capping of abandoned wells; installation and
testing of boiler backflow valves to prevent contamination of potable water;
vaccinations, titers, and preventative supplies for bloodborne pathogen
compliance; costs to comply with the Janet B. Johnson Parents' Right to Know
Act; automated external defibrillators and other emergency plan equipment and
supplies specific to the district's emergency action plan; compliance with the
National Emission Standards for Hazardous Air Pollutants for school generators
established by the United States Environmental Protection Agency; and health,
safety, and environmental management costs associated with implementing the
district's health and safety program including costs to establish and operate
safety committees, in school buildings or property owned or being acquired by
the district. Testing and calibration
activities are permitted for existing mechanical ventilation systems at
intervals no less than every five years.
(b) For fiscal years 2014 through 2017, a
school district must not include expenses related to emission compliance
projects for school generators in its health and safety revenue capital
projects unless it reduces its approved spending on other qualified health
and safety projects by the same amount.
Subd. 6a. Restrictions
on health and safety revenue. Notwithstanding
subdivision 6, health and safety revenue must not be used:
(1) to finance a lease purchase
agreement, installment purchase agreement, or other deferred payments
agreement;
(2) for the construction of new
facilities, remodeling of existing facilities, or the purchase of portable
classrooms;
(3) for interest or other financing
expenses;
(4) for energy-efficiency projects
under section 123B.65, for a building or property or part of a building or
property used for postsecondary instruction or administration or for a purpose
unrelated to elementary and secondary education;
(5) for replacement of building materials
or facilities including roof, walls, windows, internal fixtures and flooring,
nonhealth and safety costs associated with demolition of facilities, structural
repair or replacement of facilities due to unsafe conditions, violence
prevention and facility security, ergonomics, or public announcement systems
and emergency communication devices; or
(6)
for building and heating, ventilating and air conditioning supplies,
maintenance, and cleaning activities. All
assessments, investigations, inventories, and support equipment not leading to
the engineering or construction of a project shall be included in the health,
safety, and environmental management costs in subdivision 8, paragraph (a).
Subd. 6b. Health
and safety projects. (a)
Health and safety revenue applications defined in subdivision 1 must be
accompanied by a description of each project for which funding is being
requested. Project descriptions must
provide enough detail for an auditor to determine if the work qualifies for
revenue. For projects other than fire
and life safety projects, playground projects, and health, safety, and
environmental management activities, a project description does not need to
include itemized details such as material types, room locations, square feet,
names, or license numbers. The
commissioner may request supporting information and shall approve only projects
that comply with subdivisions 6 and 8, as defined by the Department of
Education.
(b) Districts may request funding for
allowable projects based on self-assessments, safety committee recommendations,
insurance inspections, management assistance reports, fire marshal orders, or
other mandates. Notwithstanding
subdivision 1, paragraph (b), and subdivision 8, paragraph (b), for projects
under $500,000, individual project size for projects authorized by this
subdivision is not limited and may include related work in multiple facilities. Health and safety management costs from
subdivision 8 may be reported as a single project.
(c) All costs directly related to a
project shall be reported in the appropriate Uniform Financial Accounting and
Reporting Standards (UFARS) finance code.
(d) For fire and life safety egress and
all other projects exceeding $20,000, cited under the Minnesota Fire Code, a
fire marshal plan review is required.
(e) Districts shall update project
estimates with actual expenditures for each fiscal year. If a project's final cost is significantly
higher than originally approved, the commissioner may request additional
supporting information.
Subd. 6c. Appeals
process. In the event a
district is denied funding approval for a project the district believes
complies with subdivisions 6 and 8, and is not otherwise excluded, a district
may appeal the decision. All such
requests must be in writing. The
commissioner shall respond in writing. A
written request must contain the following:
project number; description and amount; reason for denial; unresolved
questions for consideration; reasons for reconsideration; and a specific
statement of what action the district is requesting.
Subd. 7. Proration. In the event that the health and
safety aid available for any year is prorated, a district having its aid
prorated may levy an additional amount equal to the amount not paid by the
state due to proration.
Subd. 8. Health,
safety, and environmental management cost. (a) "Health, safety, and
environmental management" is defined in section 123B.56.
(b) A district's cost for health,
safety, and environmental management is limited to the lesser of:
(1) actual cost to implement their plan;
or
(2) an amount determined by the
commissioner, based on enrollment, building age, and size.
(c) The department may contract with
regional service organizations, private contractors, Minnesota Safety Council,
or state agencies to provide management assistance to school districts for
health and safety capital projects. Management
assistance is the development of written programs for the identification,
recognition and control of hazards, and prioritization and scheduling of
district health and safety capital projects.
The commissioner shall not mandate management assistance or exclude
private contractors from the opportunity to provide any health and safety
services to school districts.
EFFECTIVE
DATE. This section is
effective for revenue in fiscal year 2017 and later.
Sec. 3. [123B.595]
LONG-TERM FACILITIES MAINTENANCE REVENUE.
Subdivision 1. Long-term
facilities maintenance revenue. For
fiscal year 2017 and later, long-term facilities maintenance revenue equals the
greater of (1) $200 times the district's adjusted pupil units times the lesser
of one or the ratio of the district's average building age to 35 years, plus
the cost approved by the commissioner for indoor air quality, fire alarm and
suppression, and asbestos abatement projects under section 123B.57, subdivision
6, with an estimated cost of $100,000 or more per site or (2) the sum of the
amount the district would have qualified for under Minnesota Statutes 2014,
section 123B.57, Minnesota Statutes 2014, section 123B.59, and Minnesota
Statutes 2014, section 123B.591.
Subd. 2. Long-term
facilities maintenance revenue for a charter school. For fiscal year 2017 and later, long‑term
facilities maintenance revenue for a charter school equals $38 times the
adjusted pupil units.
Subd. 3. Intermediate
districts and other cooperative units.
Upon approval through the adoption of a resolution by each member
district school board of an intermediate district or other cooperative units
under section 123A.24, subdivision 2, and the approval of the commissioner of
education, a school district may include in its authority under this section a
proportionate share of the long-term maintenance costs of the intermediate
district or cooperative unit. The
cooperative unit may issue bonds to finance the project costs or levy for the
costs, using long‑term maintenance revenue transferred from member
districts to make debt service payments or pay project costs. Authority under this subdivision is in
addition to the authority for individual district projects under subdivision 1.
Subd. 4. Facilities
plans. (a) To qualify for
revenue under this section, a school district or intermediate district, not
including a charter school, must have a ten-year facility plan adopted by the
school board and approved by the commissioner.
The plan must include provisions for implementing a health and safety
program that complies with health, safety, and environmental regulations and
best practices, including indoor air quality management.
(b) The district must annually update
the plan, biennially submit a facility maintenance plan to the commissioner,
and indicate whether the district will issue bonds to finance the plan or levy
for the costs.
Subd. 5. Bond
authorization. (a) A school
district may issue general obligation bonds under this section to finance
facilities plans approved by its board and the commissioner. Chapter 475, except sections 475.58 and
475.59, must be complied with. The
authority to issue bonds under this section is in addition to any bonding
authority authorized by this chapter or other law. The amount of bonding authority authorized
under this section must be disregarded in calculating the bonding or net debt
limits of this chapter, or any other law other than section 475.53, subdivision
4.
(b) At least 20 days before the
earliest of solicitation of bids, the issuance of bonds, or the final
certification of levies under subdivision 6, the district must publish notice
of the intended projects, the amount of the bond issue, and the total amount of
district indebtedness.
(c) The portion of revenue under this
section for bonded debt must be recognized in the debt service fund.
Subd. 6. Levy
authorization. A district may
levy for costs related to an approved plan under subdivision 4 as follows:
(1) if the district has indicated to
the commissioner that bonds will be issued, the district may levy for the
principal and interest payments on outstanding bonds issued under subdivision 5
after reduction for any aid receivable under subdivision 9; or
(2)
if the district has indicated to the commissioner that the plan will be funded
through levy, the district may levy according to the schedule approved in the
plan after reduction for any aid receivable under subdivision 9.
Subd. 7. Long-term
facilities maintenance equalization revenue. For fiscal year 2017 and later, a
district's long-term facilities maintenance equalization revenue equals the
lesser of (1) $200 times the adjusted pupil units or (2) the district's revenue
under subdivision 1.
Subd. 8. Long-term
facilities maintenance equalization levy.
For fiscal year 2017 and later, a district's long‑term
facilities maintenance equalization levy equals the lesser of (1) its long-term
facilities maintenance equalization revenue times the lesser of one or the
ratio of its adjusted net tax capacity per adjusted pupil unit in the year
preceding the year the levy is certified to 125 percent of the state average
adjusted net tax capacity per adjusted pupil unit in the year preceding the
year the levy is certified or (2) the greater of zero or the district's
long-term facilities maintenance equalization revenue minus the amount of aid
the district received for fiscal year 2015 under Minnesota Statutes 2014,
section 123B.59, subdivision 6.
Subd. 9. Long-term
facilities maintenance equalization aid.
A district's long-term facilities maintenance equalization aid
equals the difference between its long-term facilities maintenance equalization
revenue and its long‑term facilities maintenance equalization levy.
Subd. 10. Long-term
facilities maintenance unequalized levy.
Each year, a district may levy an amount equal to the difference
between its total long-term facilities maintenance revenue under subdivision 1
and its long-term facilities maintenance equalization revenue.
Subd. 11. Allowed
uses for long-term facilities maintenance revenue. (a) A district may use revenue under
this section for any of the following:
(1) deferred capital expenditures and
maintenance projects necessary to prevent further erosion of facilities;
(2) increasing accessibility of school
facilities; or
(3) health and safety capital projects
under section 123B.57.
(b) A charter school may use revenue
under this section for any purpose related to the school.
Subd. 12. Restrictions
on long-term facilities maintenance revenue. Notwithstanding subdivision 11, long‑term
facilities maintenance revenue may not be used:
(1) for the construction of new
facilities, remodeling of existing facilities, or the purchase of portable
classrooms;
(2) to finance a lease purchase
agreement, installment purchase agreement, or other deferred payments
agreement;
(3) for energy-efficiency projects
under section 123B.65, for a building or property or part of a building or
property used for postsecondary instruction or administration or for a purpose
unrelated to elementary and secondary education; or
(4) for violence prevention and
facility security, ergonomics, or public announcement systems and emergency
communication devices.
Subd. 13. Reserve
account. The portion of
long-term facilities maintenance revenue not recognized under subdivision 5,
paragraph (c), must be maintained in a reserve account within the general fund.
EFFECTIVE
DATE. This section is effective
for revenue in fiscal year 2017 and later.
Sec. 4. Minnesota Statutes 2014, section 126C.01, subdivision 2, is amended to read:
Subd. 2. Adjusted net tax capacity. (a) Except as provided in paragraph (b), "adjusted net tax capacity" means the net tax capacity of the taxable property of the district as adjusted by the commissioner of revenue under sections 127A.48 and 273.1325. The adjusted net tax capacity for any given calendar year must be used to compute levy limitations for levies certified in the succeeding calendar year and aid for the school year beginning in the second succeeding calendar year.
(b) For purposes of the long-term
maintenance facilities equalization levy under section 123B.595, subdivision 8,
"adjusted net tax capacity" means the value described in paragraph
(a) reduced by 50 percent of the value of class 2a agricultural land determined
under that paragraph before the application of the growth limit under section
127A.48, subdivision 7.
EFFECTIVE
DATE. This section is effective
for taxes payable in 2016 and later.
Sec. 5. Minnesota Statutes 2014, section 127A.33, is amended to read:
127A.33
SCHOOL ENDOWMENT FUND; APPORTIONMENT.
(a) The commissioner shall apportion the school endowment fund semiannually on the first Monday in March and September in each year, to districts whose schools have been in session at least nine months. The apportionment shall be in proportion to each district's adjusted average daily membership during the preceding year. The apportionment shall not be paid to a district for pupils for whom tuition is received by the district.
(b) For fiscal year 2016 and later, a
district must reserve for school technology and telecommunications
infrastructure, programs, and training an amount equal to the greater of (1)
zero or (2) the total fiscal year apportionment per prior year pupil in
adjusted average daily membership minus $31.62.
EFFECTIVE
DATE. This section is effective
July 1, 2015.
Sec. 6. COMMISSIONER
OF EDUCATION; 1:1 DEVICE PROGRAM GUIDELINES.
The commissioner of education must
research existing 1:1 device programs in Minnesota and across the country to
determine best practices for Minnesota schools implementing 1:1 device programs. By February 15, 2016, the commissioner must
develop and publish guidelines to ensure maximum effectiveness of 1:1 device
programs and make a report on the research findings to the committees of the
legislature with jurisdiction over kindergarten through grade 12 education.
Sec. 7. FAIR
SCHOOL CRYSTAL TRANSITION.
Subdivision 1. Student
enrollment. A student
enrolled in the FAIR School Crystal during the 2014-2015 school year and a
student accepted for enrollment during the 2015-2016 school year may continue
to enroll in the FAIR School Crystal in any year through the 2019-2020 school
year. For the 2015-2016 school year and
later, other students may apply for enrollment under Minnesota Statutes,
section 124D.03.
Subd. 2. Compensatory
revenue; literacy aid; alternative compensation revenue. For the 2015-2016 school year only,
the Department of Education must calculate compensatory revenue, literacy aid,
and alternative compensation revenue for the FAIR School Crystal based on the
October 1, 2014, enrollment counts.
Subd. 3. Pupil
transportation. The district
may transport a pupil enrolled in the 2014-2015 school year and a pupil
accepted for enrollment during the 2015-2016 school year to and from the FAIR
School Crystal in succeeding school years regardless of the pupil's district of
residence. Pupil transportation expenses
under this section are reimbursable under Minnesota Statutes, section 124D.87.
EFFECTIVE
DATE. This section is
effective the day following the date on which the real and personal property of
the FAIR School Crystal in Crystal is conveyed to Independent School District No. 281,
Robbinsdale.
Sec. 8. FAIR
SCHOOL DOWNTOWN TRANSITION.
Subdivision 1. Student
enrollment. A student
enrolled in the FAIR School downtown during the 2014-2015 school year and a
student accepted for enrollment during the 2015-2016 school year may continue
to enroll in the FAIR School downtown in any year through the 2018-2019 school
year. For the 2015-2016 school year and
later, other students may apply for enrollment under Minnesota Statutes,
section 124D.03.
Subd. 2. Compensatory
revenue; literacy aid; alternative compensation revenue. For the 2015-2016 school year only,
the Department of Education must calculate compensatory revenue, literacy aid,
and alternative compensation revenue for the FAIR School downtown based on the
October 1, 2014, enrollment counts.
Subd. 3. Pupil
transportation. The district
may transport a pupil enrolled in the 2014-2015 school year and a pupil
accepted for enrollment during the 2015-2016 school year to and from the FAIR
School downtown in succeeding school years regardless of the pupil's district
of residence. Pupil transportation
expenses under this section are reimbursable under Minnesota Statutes, section
124D.87.
EFFECTIVE
DATE. This section is
effective the day following the date on which the real and personal property of
the FAIR School downtown in Minneapolis is conveyed to Special School District No. 1,
Minneapolis.
Sec. 9. INFORMATION
TECHNOLOGY CERTIFICATION PARTNERSHIP.
Subdivision 1. Request
for proposals. The
commissioner of education shall issue a request for proposals no later than
July 1, 2015, and award a contract no later than September 1, 2015, to a
provider for the program under subdivision 3.
Subd. 2. Eligible schools. A school district, intermediate district, or charter school is eligible to participate in the program under this section, as long as funds are available.
Subd. 3. Program description; provider duties. (a) The provider must partner with eligible schools to make available a program to teach information technology skills and competencies that are essential for career and college readiness. By December 1, 2015, the provider must contact each eligible school and indicate how the school can access program services under this section.
(b) The provider shall recruit up to
200 schools to participate in the program as long as funds are available. The provider must engage schools on a
first-come, first-served basis, except that no more than half of the total
funds available may be used to deliver the program to schools located in the
seven-county metropolitan area.
(c)
The provider shall deliver to each participating school:
(1) a research-based information
technology curriculum;
(2) online access to the curriculum;
(3) instructional software for classroom
and student use;
(4) training for teachers who will be
using the curriculum or instructional software;
(5) industry-recognized certification of
skills and competencies in a broad array of information technology‑related
skill areas; and
(6) project management, deployment, and
program support, including, but not limited to, integration with academic
standards under Minnesota Statutes, section 120B.021 or 120B.022.
Subd. 4. Department
support. The Department of
Education must make support available to the provider, including acting as the
primary liaison between schools and the provider and providing direction and
oversight, consistent with the purposes of this section.
Subd. 5. Report
required. By February 1,
2018, the provider and commissioner must jointly develop and deliver to the
committees of the legislature with jurisdiction over kindergarten through grade
12 education, a summary report on program activities and outcomes, including a
description of the number and location of participating schools and students,
and the number and type of certifications earned by students.
Sec. 10. CANCELLATION
OF PREVIOUS BIENNIUM APPROPRIATION.
The appropriation made by Laws 2014,
chapter 312, article 16, section 16, subdivision 5, is canceled.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. APPROPRIATIONS.
Subdivision 1. Department
of Education. The sums
indicated in this section are appropriated from the general fund to the
Department of Education for the fiscal years designated.
Subd. 2. Long-term
maintenance equalization aid. For
long-term maintenance equalization aid under Minnesota Statutes, section
123B.595:
|
|
$0
|
.
. . . . |
2016
|
|
|
$63,440,000
|
.
. . . . |
2017
|
The 2017 appropriation includes $0 for
2016 and $63,440,000 for 2017.
Subd. 3. Debt
service equalization. For
debt service aid according to Minnesota Statutes, section 123B.53, subdivision
6:
|
|
$20,349,000
|
.
. . . . |
2016
|
|
|
$22,171,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$2,295,000 for 2015 and $18,054,000 for 2016.
The 2017 appropriation includes
$2,005,000 for 2016 and $20,166,000 for 2017.
Subd. 4. Alternative
facilities bonding aid. For
alternative facilities bonding aid, according to Minnesota Statutes, section
123B.59, subdivision 1:
|
|
$19,287,000
|
.
. . . . |
2016
|
|
|
$1,928,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$1,928,000 for 2015 and $17,359,000 for 2016.
The 2017 appropriation includes
$1,928,000 for 2016 and $0 for 2017.
Subd. 5. Equity
in telecommunications access. For
equity in telecommunications access:
|
|
$5,250,000
|
.
. . . . |
2016
|
|
|
$5,250,000
|
.
. . . . |
2017
|
If the appropriation amount is
insufficient, the commissioner shall reduce the reimbursement rate in Minnesota
Statutes, section 125B.26, subdivisions 4 and 5, and the revenue for fiscal
years 2016 and 2017 shall be prorated.
Any balance in the first year does not
cancel but is available in the second year.
Subd. 6. Deferred
maintenance aid. For deferred
maintenance aid, according to Minnesota Statutes, section 123B.591, subdivision
4:
|
|
$3,520,000
|
.
. . . . |
2016
|
|
|
$345,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$409,000 for 2015 and $3,111,000 for 2016.
The 2017 appropriation includes
$345,000 for 2016 and $0 for 2017.
Subd. 7. Health
and safety revenue. For
health and safety aid according to Minnesota Statutes, section 123B.57,
subdivision 5:
|
|
$501,000
|
.
. . . . |
2016
|
|
|
$48,000
|
.
. . . . |
2017
|
The 2016 appropriation includes $66,000
for 2015 and $435,000 for 2016.
The 2017 appropriation includes $48,000
for 2016 and $0 for 2017.
Subd. 8. Information
technology certification partnership.
For an information technology certification partnership:
|
|
$500,000
|
.
. . . . |
2016
|
|
|
$0
|
.
. . . . |
2017
|
This is a onetime appropriation. Any balance in the first year does not cancel
but is available in the second year. Of
this appropriation, five percent is for departmental costs related to providing
support for the information technology certification partnership.
Subd. 9. Northwest
mobile manufacturing lab. For
a grant to the Pine to Prairie Cooperative Center:
|
|
$100,000
|
.
. . . . |
2016
|
|
|
$100,000
|
.
. . . . |
2017
|
The grant must be used to establish a
northwest mobile manufacturing lab program, containing two manufacturing labs
and two welding labs, operated by Pine to Prairie Cooperative Center in
collaboration with Northland Community and Technical College.
Any balance in the first year does not
cancel but is available in the second year.
The base for this program in fiscal year 2018 is $0.
Subd. 10. Anoka-Hennepin
School District fabrication lab. For
a grant to Independent School District No. 11, Anoka-Hennepin, to purchase
equipment and software for a fabrication lab at its Secondary Technical
Education Program in collaboration with Anoka Technical College and private program
partners.
|
|
$100,000
|
.
. . . . |
2016
|
This is a onetime appropriation.
Subd. 11. Cancellation;
IT certificates. All unspent
funds, estimated at $299,000 for the information technology certificate
partnership appropriation under Laws 2014, chapter 312, article 16, section 16,
subdivision 5, are canceled to the general fund on June 30, 2015.
Sec. 12. REPEALER.
Minnesota Statutes 2014, sections
123B.59; and 123B.591, are repealed.
EFFECTIVE
DATE. This section is
effective for revenue in fiscal year 2017 and later.
ARTICLE 5
NUTRITION AND ACCOUNTING
Section 1. Minnesota Statutes 2014, section 124D.1158, subdivision 3, is amended to read:
Subd. 3. Program
reimbursement. Each school year, the
state must reimburse each participating school
30 cents for each reduced-price breakfast, 55 cents for each fully paid
breakfast served to students in grades 1 to
4 through 12, and $1.30 for each fully paid breakfast served to a kindergarten
student students in prekindergarten through grade 3. A final claim for reimbursement shall be
submitted to the commissioner not later than 60 days following the last day of
the full month covered by the claim. Claims
not submitted within 60 days following the last day of the full month covered
by the claim shall not be eligible for reimbursement, unless otherwise
authorized by the commissioner.
Sec. 2. Minnesota Statutes 2014, section 127A.41, subdivision 8, is amended to read:
Subd. 8. Appropriation
transfers. (a) If a direct
appropriation from the general fund to the department for any education aid or
grant authorized in this chapter and chapters 122A, 123A, 123B, 124D, 125A,
126C, and 134, excluding appropriations under sections 124D.135, 124D.16,
124D.20, 124D.22, 124D.52, 124D.531, 124D.55, and 124D.56, exceeds the amount
required, the commissioner may transfer the excess to any education aid or
grant appropriation that is insufficient.
However, section 126C.20 applies to a deficiency in the direct
appropriation for general education aid.
Excess appropriations must be allocated proportionately among aids or
grants that have
insufficient appropriations. The commissioner of management and budget shall make the necessary transfers among appropriations according to the determinations of the commissioner. If the amount of the direct appropriation for the aid or grant plus the amount transferred according to this subdivision is insufficient, the commissioner shall prorate the available amount among eligible districts. The state is not obligated for any additional amounts.
(b) Transfers for aids paid under section 127A.45, subdivisions 12, paragraph (a), 12a, paragraph (a), and 13, shall be made during the fiscal year after the fiscal year of the entitlement. Transfers for aids paid under section 127A.45, subdivisions 11, 12, paragraph (b), and 12a, paragraph (b), shall be made during the fiscal year of the appropriation.
EFFECTIVE
DATE. This section is
effective for fiscal year 2017 and later.
Sec. 3. Minnesota Statutes 2014, section 127A.41, subdivision 9, is amended to read:
Subd. 9. Appropriation
transfers for community education programs.
If a direct appropriation from the general fund to the Department of
Education for an education aid or grant authorized under section 124D.135, 124D.16,
124D.20, 124D.22, 124D.52, 124D.531, 124D.55, or 124D.56 exceeds the amount
required, the commissioner of education may transfer the excess to any
education aid or grant appropriation that is insufficiently funded under these
sections. Excess appropriations shall be
allocated proportionately among aids or grants that have insufficient
appropriations. The commissioner of
management and budget shall make the necessary transfers among appropriations
according to the determinations of the commissioner of education. If the amount of the direct appropriation for
the aid or grant plus the amount transferred according to this subdivision is
insufficient, the commissioner shall prorate the available amount among
eligible districts. The state is not
obligated for any additional amounts.
EFFECTIVE
DATE. This section is
effective for fiscal year 2017 and later.
Sec. 4. APPROPRIATIONS.
Subdivision 1. Department
of Education. The sums
indicated in this section are appropriated from the general fund to the Department
of Education for the fiscal years designated.
Subd. 2. School
lunch. For school lunch aid
according to Minnesota Statutes, section 124D.111, and Code of Federal
Regulations, title 7, section 210.17:
|
|
$15,661,000
|
.
. . . . |
2016
|
|
|
$16,791,000
|
.
. . . . |
2017
|
Subd. 3. School
breakfast. For traditional
school breakfast aid under Minnesota Statutes, section 124D.1158:
|
|
$22,646,000
|
.
. . . . |
2016
|
|
|
$26,340,000
|
.
. . . . |
2017
|
Subd. 4. Kindergarten
milk. For kindergarten milk
aid under Minnesota Statutes, section 124D.118:
|
|
$942,000
|
.
. . . . |
2016
|
|
|
$942,000
|
. . . . . |
2017 |
Subd. 5. Summer
school service replacement aid. For
summer food service replacement aid under Minnesota Statutes, section 124D.119:
|
|
$150,000
|
.
. . . . |
2016
|
|
|
$150,000
|
.
. . . . |
2017
|
ARTICLE 6
LIBRARIES
Section 1. Minnesota Statutes 2014, section 134.355, subdivision 5, is amended to read:
Subd. 5. Base
aid distribution. Five Thirteen
percent of the available aid funds shall be paid to each system as base aid for
basic system services.
EFFECTIVE
DATE. This section is
effective July 1, 2015.
Sec. 2. Minnesota Statutes 2014, section 134.355, subdivision 8, is amended to read:
Subd. 8. Eligibility. A regional public library system may
apply for regional library telecommunications aid on behalf of itself and
member public libraries. The aid
must be used for data and video access maintenance, equipment, or
installation of telecommunication lines.
connections and other eligible nonvoice related e-rate program
category 1 services. Aid may be used for
e-rate program category 2 services, if sufficient funds remain once category 1
needs are met in each funding year.
To be eligible, a regional public library system must be officially
designated by the commissioner of education as a regional public library system
as defined in section 134.34, subdivision 3, and each of its participating
cities and counties must meet local support levels defined in section 134.34,
subdivision 1. A public library building
that receives aid under this section must be open a minimum of 20 hours per
week. Exceptions to the minimum open
hours requirement may be granted by the Department of Education on request of
the regional public library system for the following circumstances: short‑term closing for emergency
maintenance and repairs following a natural disaster; in response to
exceptional economic circumstances; building repair or maintenance that
requires public services areas to be closed; or to adjust hours of public
service to respond to documented seasonal use patterns.
Sec. 3. Minnesota Statutes 2014, section 134.355, subdivision 9, is amended to read:
Subd. 9. Telecommunications aid. An application for regional library telecommunications aid must, at a minimum, contain information to document the following:
(1) the connections are adequate and employ an open network architecture that will ensure interconnectivity and interoperability with school districts, postsecondary education, or other governmental agencies;
(2) that the connection is established through the most cost-effective means and that the regional library has explored and coordinated connections through school districts, postsecondary education, or other governmental agencies;
(3) that the regional library system has
and all member libraries included in the application have filed an
e-rate application; and
(4) other information, as determined by the commissioner of education, to ensure that connections are coordinated, efficient, and cost-effective, take advantage of discounts, and meet applicable state standards.
The library system may include costs associated with cooperative arrangements with postsecondary institutions, school districts, and other governmental agencies.
Sec. 4. Minnesota Statutes 2014, section 134.355, subdivision 10, is amended to read:
Subd. 10. Award
of funds. The commissioner of
education shall develop an application and a reporting form and procedures for regional
library telecommunications aid. Aid
shall be based on actual costs of including, but not limited to, connections
as documented in e-rate funding commitment decision letters and funds
available for this purpose. The
commissioner shall make payments directly to the regional public library
system.
Sec. 5. DEPARTMENT
OF EDUCATION; LIBRARY APPROPRIATIONS.
Subdivision 1. Department
of Education. The sums
indicated in this section are appropriated from the general fund to the
Department of Education for the fiscal years designated.
Subd. 2. Regional
library basic system support. For
regional library basic system support aid under Minnesota Statutes, section
134.355:
|
|
$14,920,000
|
.
. . . . |
2016
|
|
|
$15,070,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$1,357,000 for 2015 and $13,563,000 for 2016.
The 2017 appropriation includes
$1,507,000 for 2016 and $13,563,000 for 2017.
Subd. 3. Multicounty,
multitype library systems. For
aid under Minnesota Statutes, sections 134.353 and 134.354, to multicounty,
multitype library systems:
|
|
$1,300,000
|
.
. . . . |
2016
|
|
|
$1,300,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$130,000 for 2015 and $1,170,000 for 2016.
The 2017 appropriation includes
$130,000 for 2016 and $1,170,000 for 2017.
Subd. 4. Electronic
library for Minnesota. For
statewide licenses to online databases selected in cooperation with the
Minnesota Office of Higher Education for school media centers, public
libraries, state government agency libraries, and public or private college or
university libraries:
|
|
$900,000
|
.
. . . . |
2016
|
|
|
$900,000
|
.
. . . . |
2017
|
Any balance in the first year does not
cancel but is available in the second year.
Subd. 5. Regional
library telecommunications aid. For
regional library telecommunications aid under Minnesota Statutes, section
134.355:
|
|
$2,300,000
|
.
. . . . |
2016
|
|
|
$2,300,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$230,000 for 2015 and $2,070,000 for 2016.
The 2017 appropriation includes $230,000
for 2016 and $2,070,000 for 2017.
ARTICLE 7
EARLY CHILDHOOD EDUCATION
Section 1. Minnesota Statutes 2014, section 124D.162, is amended to read:
124D.162
KINDERGARTEN READINESS ASSESSMENT.
The commissioner of education may
implement a kindergarten readiness assessment representative of incoming
kindergartners. The assessment must be
based on the Department of Education Kindergarten Readiness Assessment at
kindergarten entrance study. The
commissioner of education must provide a process for measuring the kindergarten
readiness of incoming kindergartners. Districts
must choose from a menu of valid and reliable measurement instruments provided
by the Department of Education that are aligned to the state early childhood
indicators of progress and kindergarten standards that are based on the
Department of Education Kindergarten Readiness Study and meet the World's Best
Workforce goal of measuring school readiness.
Sec. 2. Minnesota Statutes 2014, section 124D.165, subdivision 2, is amended to read:
Subd. 2. Family eligibility. (a) For a family to receive an early learning scholarship, parents or guardians must meet the following eligibility requirements:
(1) have a child three or four under
the age of five years of age old on September 1 of the
current school year, who has not yet started kindergarten and is not
currently enrolled in a prekindergarten program under section 124D.171; and
(2) have income equal to or less than 185 percent of federal poverty level income in the current calendar year, or be able to document their child's current participation in the free and reduced-price lunch program or child and adult care food program, National School Lunch Act, United States Code, title 42, sections 1751 and 1766; the Food Distribution Program on Indian Reservations, Food and Nutrition Act, United States Code, title 7, sections 2011‑2036; Head Start under the federal Improving Head Start for School Readiness Act of 2007; Minnesota family investment program under chapter 256J; child care assistance programs under chapter 119B; the supplemental nutrition assistance program; or placement in foster care under section 260C.212.
(b) Notwithstanding the other provisions of this section, a parent under age 21 who is pursuing a high school or general education equivalency diploma is eligible for an early learning scholarship if the parent has a child age zero to five years old and meets the income eligibility guidelines in this subdivision.
(c) Any siblings between the ages zero to five years old of a child who has been awarded a scholarship under this section must be awarded a scholarship upon request, provided the sibling attends the same program as long as funds are available.
(d) A child who has received a scholarship under this section must continue to receive a scholarship each year until that child is eligible for kindergarten under section 120A.20 and as long as funds are available.
(e) Early learning scholarships may not be counted as earned income for the purposes of medical assistance under chapter 256B, MinnesotaCare under chapter 256L, Minnesota family investment program under chapter 256J, child care assistance programs under chapter 119B, or Head Start under the federal Improving Head Start for School Readiness Act of 2007.
EFFECTIVE
DATE. This section is
effective for fiscal year 2017 and later.
Sec. 3. [124D.173]
HELP ME GROW.
Subdivision 1. Purpose. The purpose of this section is to
develop and implement a comprehensive, collaborative resource and referral
system for children, prenatal through age eight, and their families.
Subd. 2. Establishment
and administration. The
commissioner of education shall provide funding and shall work collaboratively
through interagency agreement with the commissioners of human services and health
to implement this section and maintain annual affiliate status with the Help Me
Grow National Center.
Subd. 3. Duties. (a) The Help Me Grow program shall
facilitate collaboration across sectors, including child health, early learning
and education, and family supports by:
(1) providing child health care
provider outreach to support early detection, intervention, and knowledge about
local resources;
(2) identifying and providing access to
detection tools used to identify young children at risk for developmental and
behavioral problems; and
(3) linking children and families to
appropriate community-based services.
(b) The Help Me Grow program shall provide community outreach that includes support for, and participation in, the Help Me Grow system, including disseminating information on the system and compiling and maintaining a resource directory that includes, but is not limited to:
(1) primary and specialty medical care
providers;
(2) early childhood education and child
care programs;
(3) developmental disabilities
assessment and intervention programs;
(4) mental health services;
(5) family and social support programs;
(6) child advocacy and legal services;
(7) public health services and
resources; and
(8) other appropriate early childhood
information.
(c) The Help Me Grow program shall
develop a centralized access point for parents and professionals to obtain
information, resources, and other support services.
(d) The Help Me Grow program shall
collect data to increase understanding of all aspects of the current and
ongoing system under this section, including identification of gaps in service,
barriers to finding and receiving appropriate service, and lack of resources.
Subd. 4. Review. The Department of Education shall
annually review the following:
(1) outcomes achieved by this system;
(2)
alignment with overall early childhood goals and objectives; and
(3) impacts on young children.
Sec. 4. APPROPRIATIONS.
Subdivision 1. Department
of Education. The sums
indicated in this section are appropriated from the general fund to the
Department of Education for the fiscal years designated.
Subd. 2. School
readiness. For revenue for
school readiness programs under Minnesota Statutes, sections 124D.15 and
124D.16:
|
|
$12,170,000
|
.
. . . . |
2016
|
|
|
$12,170,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$1,217,000 for 2015 and $10,953,000 for 2016.
The 2017 appropriation includes
$1,217,000 for 2016 and $10,953,000 for 2017.
Subd. 3. Early
childhood family education aid. For
early childhood family education aid under Minnesota Statutes, section
124D.135:
|
|
$28,046,000
|
.
. . . . |
2016
|
|
|
$29,095,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$2,713,000 for 2015 and $25,333,000 for 2016.
The 2017 appropriation includes
$2,814,000 for 2016 and $26,281,000 for 2017.
Subd. 4. Developmental
screening aid. For
developmental screening aid under Minnesota Statutes, sections 121A.17 and
121A.19:
|
|
$3,363,000
|
.
. . . . |
2016
|
|
|
$3,369,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$337,000 for 2015 and $3,021,000 for 2016.
The 2017 appropriation includes
$335,000 for 2016 and $3,017,000 for 2017.
Subd. 5. Head
Start program. For Head Start
programs under Minnesota Statutes, section 119A.52:
|
|
$20,100,000
|
.
. . . . |
2016
|
|
|
$39,542,000
|
.
. . . . |
2017
|
Subd. 6. Educate
parents partnership. For the
educate parents partnership under Minnesota Statutes, section 124D.129:
|
|
$49,000
|
.
. . . . |
2016
|
|
|
$49,000
|
. . . . . |
2017 |
Subd. 7. Kindergarten
entrance assessment initiative and intervention program. For the kindergarten entrance
assessment initiative and intervention program under Minnesota Statutes,
section 124D.162:
|
|
$1,881,000
|
.
. . . . |
2016
|
|
|
$1,881,000
|
.
. . . . |
2017
|
Subd. 8. Early
learning scholarships. For
the early learning scholarship program under Minnesota Statutes, section
124D.165:
|
|
$40,384,000
|
.
. . . . |
2016
|
|
|
$50,384,000
|
.
. . . . |
2017
|
Up to $950,000 each year is for
administration of this program.
Any balance in the first year does not
cancel but is available in the second year.
Subd. 9. Parent-child
home program. For a grant to
the parent-child home program:
|
|
$350,000
|
.
. . . . |
2016
|
|
|
$350,000
|
.
. . . . |
2017
|
The grant must be used for an evidence-based and
research-validated early childhood literacy and school readiness program for
children ages 16 months to four years at its existing suburban program
location.
Subd. 10. Northside
Achievement Zone. For a grant
to the Northside Achievement Zone.
|
|
$1,200,000
|
.
. . . . |
2016
|
|
|
$1,200,000
|
.
. . . . |
2017
|
Funds appropriated in this section are
to reduce multigenerational poverty and the educational achievement gap through
increased enrollment of families within the zone, and may be used for Northside
Achievement Zone programming and services consistent with federal Promise
Neighborhood program agreements and requirements.
Subd. 11. St. Paul Promise Neighborhood. For a grant to the St. Paul Promise Neighborhood.
|
|
$1,200,000
|
.
. . . . |
2016
|
|
|
$1,200,000
|
.
. . . . |
2017
|
Funds appropriated in this section are
to reduce multigenerational poverty and the educational achievement gap through
increased enrollment of families within the zone, and may be used for St. Paul
Promise Neighborhood programming and services consistent with federal Promise
Neighborhood program agreements and requirements.
ARTICLE 8
PREVENTION
Section 1.
APPROPRIATION.
Subdivision 1. Department
of Education. The sums
indicated in this section are appropriated from the general fund to the
Department of Education for the fiscal years designated.
Subd. 2. Community
education aid. For community
education aid under Minnesota Statutes, section 124D.20:
|
|
$788,000
|
.
. . . . |
2016
|
|
|
$554,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$107,000 for 2015 and $681,000 for 2016.
The 2017 appropriation includes $75,000
for 2016 and $479,000 for 2017.
Subd. 3. Adults
with disabilities program aid. For
adults with disabilities programs under Minnesota Statutes, section 124D.56:
|
|
$710,000
|
.
. . . . |
2016
|
|
|
$710,000
|
.
. . . . |
2017
|
The 2016 appropriation includes $71,000
for 2015 and $639,000 for 2016.
The 2017 appropriation includes $71,000
for 2016 and $639,000 for 2017.
Subd. 4. Hearing-impaired
adults. For programs for
hearing-impaired adults under Minnesota Statutes, section 124D.57:
|
|
$70,000
|
.
. . . . |
2016
|
|
|
$70,000
|
.
. . . . |
2017
|
Subd. 5. School-age
care revenue. For extended
day aid under Minnesota Statutes, section 124D.22:
|
|
$1,000
|
.
. . . . |
2016
|
|
|
$1,000
|
.
. . . . |
2017
|
The 2016 appropriation includes $0 for
2015 and $1,000 for 2016.
The 2017 appropriation includes $0 for
2016 and $1,000 for 2017.
ARTICLE 9
SELF-SUFFICIENCY AND LIFELONG LEARNING
Section 1.
APPROPRIATIONS.
Subdivision 1. Department
of Education. The sums
indicated in this section are appropriated from the general fund to the
Department of Education for the fiscal years designated.
Subd. 2. Adult
basic education aid. For adult
basic education aid under Minnesota Statutes, section 124D.531:
|
|
$49,118,000
|
.
. . . . |
2016
|
|
|
$50,592,000
|
.
. . . . |
2017
|
The 2016 appropriation includes
$4,782,000 for 2015 and $44,336,000 for 2016.
The 2017 appropriation includes $4,926,000
for 2016 and $45,666,000 for 2017.
Subd. 3. GED
tests. For payment of 60
percent of the costs of GED tests under Minnesota Statutes, section 124D.55:
|
|
$125,000
|
.
. . . . |
2016
|
|
|
$125,000
|
.
. . . . |
2017
|
ARTICLE 10
STATE AGENCIES
Section 1. Minnesota Statutes 2014, section 122A.18, subdivision 8, is amended to read:
Subd. 8. Background checks. (a) The Board of Teaching and the commissioner of education must request a criminal history background check from the superintendent of the Bureau of Criminal Apprehension on all applicants for initial licenses under their jurisdiction. An application for a license under this section must be accompanied by:
(1) an executed criminal history consent form, including fingerprints; and
(2) a money order or cashier's check
payable to the Bureau of Criminal Apprehension for the fee for conducting the
payment to conduct a criminal history background check. Proceeds from this fee are annually
appropriated to the commissioner for costs associated with processing licensure
applications.
(b) The superintendent of the Bureau of Criminal Apprehension shall perform the background check required under paragraph (a) by retrieving criminal history data as defined in section 13.87 and shall also conduct a search of the national criminal records repository. The superintendent is authorized to exchange fingerprints with the Federal Bureau of Investigation for purposes of the criminal history check. The superintendent shall recover the cost to the bureau of a background check through the fee charged to the applicant under paragraph (a).
(c) The Board of Teaching or the commissioner of education may issue a license pending completion of a background check under this subdivision, but must notify the individual that the individual's license may be revoked based on the result of the background check.
Sec. 2. RULEMAKING
AUTHORITY.
(a) The Board of Teaching shall adopt
rules for a process for approving certificates of advanced professional study. A certificate of advanced professional study
is a credential available only to a teacher with a full license in at least one
discipline that allows for teaching without further waiver or variance when a
licensure program in the discipline does not exist or when a teacher with a
full license in the discipline cannot be found.
The certificate of advanced professional study must:
(1) have fewer requirements than the
full license in the discipline;
(2) set the specific qualifications
required to attain it; and
(3) maintain professional standards for
teaching in that discipline.
(b) The rules adopted under paragraph
(a) must limit certificates of advanced professional study to:
(1) disciplines in which at least one
geographic area of the state has a demonstrated shortage of fully licensed
teachers; and
(2) emerging disciplines where full
licenses or licensure programs do not exist.
Sec. 3. APPROPRIATIONS;
DEPARTMENT OF EDUCATION.
Subdivision 1. Department
of Education. Unless
otherwise indicated, the sums indicated in this section are appropriated from
the general fund to the Department of Education for the fiscal years
designated.
Subd. 2. Department. (a) For the Department of Education:
|
|
$31,294,000
|
.
. . . . |
2016
|
|
|
$31,121,000
|
.
. . . . |
2017
|
Of these amounts:
(1) $260,000 each year is for the
Minnesota Children's Museum;
(2) $41,000 each year is for the
Minnesota Academy of Science;
(3) $50,000 each year is for the Duluth
Children's Museum;
(4) $1,020,000 in fiscal year 2016 and
$718,000 in fiscal year 2017 are for the Board of Teaching;
(5) $228,000 in fiscal year 2016 and
$231,000 in fiscal year 2017 are for the Board of School Administrators;
(6) $25,000 each year is for
administration of the Innovative Education Pilot under Laws 2012, chapter 263,
section 1;
(7) $7,000,000 each year is for
Regional Centers of Excellence under Minnesota Statutes, section 120B.115;
(8) $500,000 each year is for the
School Safety Technical Assistance Center under Minnesota Statutes, section
127A.052;
(9) $1,000,000 each year is for
activities related to the statewide Help Me Grow program under Minnesota
Statutes, section 124D.173;
(10) $250,000 each year is for the
School Finance Division to enhance financial data analysis; and
(11) $23,000 each year is for
collecting data on the number of deaths and hospitalizations for students who
participate in travel abroad programs.
(b) Any balance in the first year does not cancel but is available in the second year.
(c) None of the amounts appropriated
under this subdivision may be used for Minnesota's Washington, D.C. office.
(d) The expenditures of federal grants
and aids as shown in the biennial budget document and its supplements are
approved and appropriated and shall be spent as indicated.
(e) This appropriation includes funds
for information technology project services and support subject to the
provisions of Minnesota Statutes, section 16E.0466. Any ongoing information technology costs will
be incorporated into the service level agreement and will be paid to the Office
of MN.IT Services by the Department of Education under the rates and mechanism
specified in that agreement.
Sec. 4. APPROPRIATIONS;
MINNESOTA STATE ACADEMIES.
The sums indicated in this section are
appropriated from the general fund to the Minnesota State Academies for the
Deaf and the Blind for the fiscal years designated:
|
|
$12,853,000
|
.
. . . . |
2016
|
|
|
$12,819,000
|
.
. . . . |
2017
|
Of the amount appropriated, $708,000 in
fiscal year 2016 and $490,000 in fiscal year 2017 are for technology
enhancements and may be used for: (1)
computer hardware; (2) computer software; (3) connectivity, communications, and
infrastructure; (4) assistive technology; (5) access to electronic books and
other online materials, licenses, and subscriptions; and (6) technology staff
and training costs.
Any balance in the first year does not
cancel, but is available in the second year.
The base appropriation for the
Minnesota State Academies for the Deaf and Blind in fiscal year 2018 and later
is $12,804,000.
Sec. 5. APPROPRIATIONS;
PERPICH CENTER FOR ARTS EDUCATION.
The sums in this section are
appropriated from the general fund to the Perpich Center for Arts Education for
the fiscal years designated:
|
|
$7,422,000
|
.
. . . . |
2016
|
|
|
$7,523,000
|
.
. . . . |
2017
|
Of the amount appropriated, $500,000 in
fiscal year 2016 and $500,000 in fiscal year 2017 are for upgrading classrooms,
public spaces, and performance areas within the high school and the
professional development center on the Golden Valley campus.
Any balance in the first year does not
cancel but is available in the second year.
The base appropriation for the Perpich Center for Arts Education in fiscal year 2018 and later is $7,123,000."
Amend the title as follows:
Page 1, line 4, delete "standards and assessments, charter schools,"
Correct the title numbers accordingly
Signed: |
Mary
Murphy
Lyndon Carlson
Murphy, M., moved that the Minority Report from the Committee on Ways and Means relating to H. F. No. 844 be substituted for the Majority Report and that the Minority Report be now adopted.
A roll call was requested and properly seconded.
LAY ON THE TABLE
Peppin moved that the Minority Report from the Committee on Ways and Means relating to H. F. No. 844 be laid on the table.
A roll call was requested and properly seconded.
The question was taken on the Peppin motion and the roll was called. There were 69 yeas and 59 nays as follows:
Those who voted in the affirmative were:
Albright
Anderson, M.
Anderson, P.
Anderson, S.
Backer
Baker
Barrett
Christensen
Cornish
Daniels
Davids
Dean, M.
Dettmer
Drazkowski
Erickson
Fabian
Fenton
Franson
Green
Gruenhagen
Gunther
Hackbarth
Hamilton
Hancock
Heintzeman
Hertaus
Hoppe
Howe
Johnson, B.
Kelly
Kiel
Knoblach
Koznick
Kresha
Lohmer
Loon
Loonan
Lucero
Lueck
Mack
McDonald
McNamara
Miller
Nash
Newberger
Nornes
O'Driscoll
O'Neill
Peppin
Petersburg
Peterson
Pierson
Pugh
Quam
Rarick
Runbeck
Sanders
Schomacker
Scott
Smith
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Vogel
Whelan
Wills
Zerwas
Those who voted in the negative were:
Allen
Anzelc
Applebaum
Atkins
Bernardy
Bly
Carlson
Clark
Considine
Davnie
Dehn, R.
Dill
Erhardt
Fischer
Freiberg
Hansen
Hausman
Hilstrom
Hornstein
Hortman
Isaacson
Johnson, C.
Johnson, S.
Kahn
Laine
Lenczewski
Lesch
Liebling
Lien
Lillie
Loeffler
Mahoney
Mariani
Marquart
Masin
Metsa
Moran
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Norton
Pelowski
Pinto
Poppe
Rosenthal
Schoen
Schultz
Selcer
Simonson
Slocum
Sundin
Thissen
Wagenius
Ward
Winkler
Yarusso
Youakim
The motion prevailed and the Minority Report from the Committee on Ways and Means relating to H. F. No. 844 was laid on the table.
The question recurred on the adoption of the Majority Report from the Committee on Ways and Means relating to H. F. No. 844.
A roll call was requested and properly seconded.
The question was taken on the adoption of the Majority Report from the Committee on Ways and Means relating to H. F. No. 844 and the roll was called. There were 69 yeas and 59 nays as follows:
Those who voted in the affirmative were:
Albright
Anderson, M.
Anderson, P.
Anderson, S.
Backer
Baker
Barrett
Christensen
Cornish
Daniels
Davids
Dean, M.
Dettmer
Drazkowski
Erickson
Fabian
Fenton
Franson
Green
Gruenhagen
Gunther
Hackbarth
Hamilton
Hancock
Heintzeman
Hertaus
Hoppe
Howe
Johnson, B.
Kelly
Kiel
Knoblach
Koznick
Kresha
Lohmer
Loon
Loonan
Lucero
Lueck
Mack
McDonald
McNamara
Miller
Nash
Newberger
Nornes
O'Driscoll
O'Neill
Peppin
Petersburg
Peterson
Pierson
Pugh
Quam
Rarick
Runbeck
Sanders
Schomacker
Scott
Smith
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Vogel
Whelan
Wills
Zerwas
Those who voted in the negative were:
Allen
Anzelc
Applebaum
Atkins
Bernardy
Bly
Carlson
Clark
Considine
Davnie
Dehn, R.
Dill
Erhardt
Fischer
Freiberg
Hansen
Hausman
Hilstrom
Hornstein
Hortman
Isaacson
Johnson, C.
Johnson, S.
Kahn
Laine
Lenczewski
Lesch
Liebling
Lien
Lillie
Loeffler
Mahoney
Mariani
Marquart
Masin
Metsa
Moran
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Norton
Pelowski
Pinto
Poppe
Rosenthal
Schoen
Schultz
Selcer
Simonson
Slocum
Sundin
Thissen
Wagenius
Ward
Winkler
Yarusso
Youakim
The Majority Report from the Committee on Ways and Means relating to H. F. No. 844 was adopted.
Davids from the Committee on Taxes to which was referred:
H. F. No. 848, A bill for an act relating to taxation; providing for tax reductions to middle class families; closing loopholes; providing tax fairness; appropriating money; amending Minnesota Statutes 2014, sections 16D.08, subdivision 2; 270.80, subdivisions 1, 2, 3, 4, by adding subdivisions; 270.81, subdivisions 1, 3, by adding a subdivision; 270.82; 270.83, subdivisions 1, 2; 270.84; 270.86; 270.87; 270C.03, subdivision 1; 270C.33, subdivision 6; 272.02, subdivision 9; 275.025, subdivisions 1, 4; 289A.60, by adding a subdivision; 290.01, subdivision 4a, by adding a subdivision; 290.067, subdivisions 1, 2, 2b, 3; 290.0671, subdivision 1; 290.0674, subdivision 2, by adding a subdivision; 290.068, subdivision 2; 290.17, subdivision 4; 290.191, subdivision 5; 290.21, subdivision 4; 290A.03, subdivision 13; 290B.03, subdivision 1; 290B.04, subdivision 1; 291.03, by adding a subdivision; 296A.01, subdivision 12; 296A.08, subdivision 2; 297A.815, subdivision 3; 297A.94; 297H.04, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 270C; repealing Minnesota Statutes 2014, sections 270.81, subdivision 4; 270.83, subdivision 3; 290.067, subdivision 2a; Minnesota Rules, parts 8106.0100, subparts 1, 2, 3, 4, 5, 6, 7, 8, 10, 12, 13, 14, 17, 17a, 18, 19, 20, 21; 8106.0300, subparts 1, 3; 8106.0400; 8106.0500; 8106.0600; 8106.0700; 8106.0800; 8106.9900.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"ARTICLE 1
INCOME AND FRANCHISE TAXES
Section 1.
[16A.728] LONG-TERM CARE
SAVINGS PLAN.
Subdivision 1. Definitions. (a) For purposes of this section, the following
terms have the meanings given.
(b) "Long-term care expense"
means the cost of long-term care in a long-term care facility and the cost of
care provided in a person's home when the person receiving the care is unable
to perform multiple basic life functions independently.
(c) "Long-term care insurance
premiums" means premiums paid for a long-term care insurance policy, as
defined in section 290.0672.
(d) "Participant" means an
individual who has entered into a participation agreement or established an
account under the plan with a financial institution with which the commissioner
has an agreement under subdivision 2, paragraph (a).
(e) "Qualified individual"
means a person who:
(1) incurred long-term care expenses
during the taxable year; or
(2) turned 50 years of age or older
during the taxable year and who made payments for long-term care insurance
premiums during the taxable year.
Subd. 2. Commissioner
duties; participation agreement. (a)
The Minnesota long-term care savings plan is created. The commissioner shall select the
administrator of the plan. If the
commissioner receives no acceptable responses to a request for proposals for an
administrator for the plan by November 1, 2015, the commissioner may enter into
agreements with state chartered or federally chartered banks, savings banks,
savings associations, trust companies, or credit unions, or a subsidiary of
such an entity, to receive contributions in the form of account deposits. The commissioner may adopt and promulgate
rules and regulations to carry out the duties under this subdivision.
(b) If an administrator is selected,
participants must enter into participation agreements with the commissioner,
and if an administrator is not selected, participants may make contributions to
an account with a financial institution with which the commissioner has an
agreement under paragraph (a). A
lifetime maximum of $200,000 may be contributed by a participant. The commissioner must adjust the dollar
limitation annually for inflation as provided in section 151 of the Internal
Revenue Code of 1986, as amended.
(c) Each participation agreement must
provide that the agreement may be canceled or transferred to a spouse upon the
terms and conditions set by the commissioner.
If the participation agreement is canceled or the Minnesota long-term
care savings plan is terminated, a participant may receive the principal amount
of all contributions made by the participant or on behalf of the participant
plus the actual investment earnings on the contributions, less any losses
incurred on the contributions. A
participant must not receive more than the fair market value of the account
under the participation agreement on the applicable liquidation date.
(d) A participant retains ownership of
all contributions up to the date of use.
(e) State income tax treatment of
contributions and investment earnings is as provided in section 290.01,
subdivisions 19a and 19b.
Subd. 3. Long-term
care savings plan trust. If
an administrator for the Minnesota long-term care savings plan is selected
under subdivision 2, the Minnesota long-term care savings plan trust is created. The commissioner is the trustee of the trust
and is responsible for the administration, operation, and maintenance of the
plan and has all the powers necessary to carry out and effectuate the purposes,
objectives, and provisions of the Minnesota long-term care savings plan for the
administration, operation, and maintenance of the trust, except that the
investment officer has fiduciary responsibility to make all decisions regarding
the investment of the money in the trust, including the selection of all
investment options and the approval of all fees and other costs charged to
trust assets, except costs for administration, operation, and maintenance of
the trust, under the directions, guidelines, and policies established by the
State Board of Investment. The
commissioner may adopt and promulgate rules for the efficient administration,
operation, and maintenance of the trust.
The commissioner must not adopt and promulgate rules and regulations
that in any way interfere with the fiduciary responsibility of the state
investment officer to make all decisions regarding the investment of money in
the trust. The State Board of Investment
may adopt and promulgate rules and regulations to provide for the prudent
investment of the assets of the trust. The
State Board of Investment or its designee may select and enter into agreements
with individuals and entities to provide investment advice and management of
the assets held by the trust, establish investment guidelines, objectives, and
performance standards for the assets held by the trust, and approve any fees,
commissions, and expenses which directly or indirectly affect the return on
assets.
Subd. 4. Authorized
withdrawals. A qualified
individual may make withdrawals as a participant in the Minnesota long-term
care savings plan to pay or reimburse long-term care expenses or long-term care
insurance premiums. Any participant who
is not a qualified individual or who makes a withdrawal for any reason other
than a transfer of funds to a spouse, payment of long-term care expenses or
long-term care insurance premiums, or the death of the participant is subject
to a ten percent penalty on the amount withdrawn. The commissioner shall collect the penalty.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 62V.05, subdivision 5, is amended to read:
Subd. 5. Health carrier and health plan requirements; participation. (a) Beginning January 1, 2015, the board may establish certification requirements for health carriers and health plans to be offered through MNsure that satisfy federal requirements under section 1311(c)(1) of the Affordable Care Act, Public Law 111-148.
(b) Paragraph (a) does not apply if by June 1, 2013, the legislature enacts regulatory requirements that:
(1) apply uniformly to all health carriers and health plans in the individual market;
(2) apply uniformly to all health carriers and health plans in the small group market; and
(3) satisfy minimum federal certification requirements under section 1311(c)(1) of the Affordable Care Act, Public Law 111-148.
(c) In accordance with section 1311(e) of the Affordable Care Act, Public Law 111-148, the board shall establish policies and procedures for certification and selection of health plans to be offered as qualified health plans through MNsure. The board shall certify and select a health plan as a qualified health plan to be offered through MNsure, if:
(1) the health plan meets the minimum certification requirements established in paragraph (a) or the market regulatory requirements in paragraph (b);
(2) the board determines that making the health plan available through MNsure is in the interest of qualified individuals and qualified employers;
(3) the health carrier applying to offer the health plan through MNsure also applies to offer health plans at each actuarial value level and service area that the health carrier currently offers in the individual and small group markets; and
(4) the health carrier does not apply to offer health plans in the individual and small group markets through MNsure under a separate license of a parent organization or holding company under section 60D.15, that is different from what the health carrier offers in the individual and small group markets outside MNsure.
(d) In determining the interests of qualified individuals and employers under paragraph (c), clause (2), the board may not exclude a health plan for any reason specified under section 1311(e)(1)(B) of the Affordable Care Act, Public Law 111-148. The board may consider:
(1) affordability;
(2) quality and value of health plans;
(3) promotion of prevention and wellness;
(4) promotion of initiatives to reduce health disparities;
(5) market stability and adverse selection;
(6) meaningful choices and access;
(7) alignment and coordination with state agency and private sector purchasing strategies and payment reform efforts; and
(8) other criteria that the board determines appropriate.
(e) For qualified health plans offered through MNsure on or after January 1, 2015, the board shall establish policies and procedures under paragraphs (c) and (d) for selection of health plans to be offered as qualified health plans through MNsure by February 1 of each year, beginning February 1, 2014. The board shall consistently and uniformly apply all policies and procedures and any requirements, standards, or criteria to all health carriers and health plans. For any policies, procedures, requirements, standards, or criteria that are defined as rules under section 14.02, subdivision 4, the board may use the process described in subdivision 9.
(f) For 2014, the board shall not have the power to select health carriers and health plans for participation in MNsure. The board shall permit all health plans that meet the certification requirements under section 1311(c)(1) of the Affordable Care Act, Public Law 111-148, to be offered through MNsure.
(g) Under this subdivision, the board shall have the power to verify that health carriers and health plans are properly certified to be eligible for participation in MNsure.
(h) The board has the authority to decertify health carriers and health plans that fail to maintain compliance with section 1311(c)(1) of the Affordable Care Act, Public Law 111-148.
(i) For qualified health plans offered through MNsure beginning January 1, 2015, health carriers must use the most current addendum for Indian health care providers approved by the Centers for Medicare and Medicaid Services and the tribes as part of their contracts with Indian health care providers. MNsure shall comply with all future changes in federal law with regard to health coverage for the tribes.
(j) Health carriers offering coverage through MNsure shall provide a premium advance to qualified individuals eligible for a state tax credit under section 290.0661, equal to the amount of the tax credit calculated under that section. Individuals receiving a premium advance under this paragraph must pay to the health carrier the full amount of the premium advance by April 15 of the year following the coverage year for which the premium advance was provided. The MNsure eligibility system must automatically notify health carriers:
(1) if an enrollee is eligible for a state tax credit under section 290.0661; and
(2) the amount of the applicable state
tax credit.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 3. Minnesota Statutes 2014, section 116J.8737, subdivision 5, is amended to read:
Subd. 5. Credit
allowed. (a)(1) A qualified investor
or qualified fund is eligible for a credit equal to 25 percent of the qualified
investment in a qualified small business.
Investments made by a pass-through entity qualify for a credit only if
the entity is a qualified fund. The
commissioner must not allocate more than $15,000,000 in credits to qualified
investors or qualified funds for taxable years beginning after December 31,
2013, and before January 1, 2017 2015, and must not allocate more
than $18,000,000 in credits to qualified investors or qualified funds for
taxable years beginning after December 31, 2014, and before January 1, 2019;
and
(2) for taxable years beginning after
December 31, 2014, and before January 1, 2017, $7,500,000 50 percent
of the amount available for the taxable year must be allocated to credits
for qualifying investments in qualified greater Minnesota businesses and minority-
or women-owned qualified small businesses in Minnesota. Any portion of a taxable year's credits that
is reserved for qualifying investments in greater Minnesota businesses and
minority- or women-owned qualified small businesses in Minnesota that is not
allocated by September 30 of the taxable year is available for allocation to
other credit applications beginning on October 1. Any portion of a taxable year's credits that
is not allocated by the commissioner does not cancel and may be carried forward
to subsequent taxable years until all credits have been allocated.
(b) The commissioner may not allocate more than a total maximum amount in credits for a taxable year to a qualified investor for the investor's cumulative qualified investments as an individual qualified investor and as an investor in a qualified fund; for married couples filing joint returns the maximum is $250,000, and for all other filers the maximum is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits over all taxable years for qualified investments in any one qualified small business.
(c) The commissioner may not allocate a credit to a qualified investor either as an individual qualified investor or as an investor in a qualified fund if, at the time the investment is proposed:
(1) the investor is an officer or principal of the qualified small business; or
(2) the investor, either individually or in combination with one or more members of the investor's family, owns, controls, or holds the power to vote 20 percent or more of the outstanding securities of the qualified small business.
A member of the family of an individual disqualified by this paragraph is not eligible for a credit under this section. For a married couple filing a joint return, the limitations in this paragraph apply collectively to the investor and spouse. For purposes of determining the ownership interest of an investor under this paragraph, the rules under section 267(c) and 267(e) of the Internal Revenue Code apply.
(d) Applications for tax credits for 2010 must be made available on the department's Web site by September 1, 2010, and the department must begin accepting applications by September 1, 2010. Applications for subsequent years must be made available by November 1 of the preceding year.
(e) Qualified investors and qualified funds must apply to the commissioner for tax credits. Tax credits must be allocated to qualified investors or qualified funds in the order that the tax credit request applications are filed with the department. The commissioner must approve or reject tax credit request applications within 15 days of receiving the application. The investment specified in the application must be made within 60 days of the allocation of the credits. If the investment is not made within 60 days, the credit allocation is canceled and available for reallocation. A qualified investor or qualified fund that fails to invest as specified in the application, within 60 days of allocation of the credits, must notify the commissioner of the failure to invest within five business days of the expiration of the 60-day investment period.
(f) All tax credit request applications filed with the department on the same day must be treated as having been filed contemporaneously. If two or more qualified investors or qualified funds file tax credit request applications on the same day, and the aggregate amount of credit allocation claims exceeds the aggregate limit of credits under this section or the lesser amount of credits that remain unallocated on that day, then the credits must be allocated among the qualified investors or qualified funds who filed on that day on a pro rata basis with respect to the amounts claimed. The pro rata allocation for any one qualified investor or qualified fund is the product obtained by multiplying a fraction, the numerator of which is the amount of the credit allocation claim filed on behalf of a qualified investor and the denominator of which is the total of all credit allocation claims filed on behalf of all applicants on that day, by the amount of credits that remain unallocated on that day for the taxable year.
(g) A qualified investor or qualified fund, or a qualified small business acting on their behalf, must notify the commissioner when an investment for which credits were allocated has been made, and the taxable year in which the investment was made. A qualified fund must also provide the commissioner with a statement indicating the amount invested by each investor in the qualified fund based on each investor's share of the assets of the qualified fund at the time of the qualified investment. After receiving notification that the investment was made, the commissioner must issue credit certificates for the taxable year in which the investment was made to the qualified investor or, for an investment made by a qualified fund, to each qualified investor who is an investor in the fund. The certificate must state that the credit is subject to revocation if the qualified investor or qualified fund does not hold the investment in the qualified small business for at least three years, consisting of the calendar year in which the investment was made and the two following years. The three-year holding period does not apply if:
(1) the investment by the qualified investor or qualified fund becomes worthless before the end of the three-year period;
(2) 80 percent or more of the assets of the qualified small business is sold before the end of the three-year period;
(3) the qualified small business is sold before the end of the three-year period;
(4) the qualified small business's common stock begins trading on a public exchange before the end of the three‑year period; or
(5) the qualified investor dies before the end of the three-year period.
(h) The commissioner must notify the commissioner of revenue of credit certificates issued under this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment for taxable years beginning after
December 31, 2014.
Sec. 4. Minnesota Statutes 2014, section 116J.8737, subdivision 12, is amended to read:
Subd. 12. Sunset. This section expires for taxable years
beginning after December 31, 2016 2018, except that reporting
requirements under subdivision 6 and revocation of credits under subdivision 7
remain in effect through 2018 2020 for qualified investors and
qualified funds, and through 2020 2022 for qualified small
businesses, reporting requirements under
subdivision 9 remain in effect through 2021 2023, and the
appropriation in subdivision 11 remains in effect through 2020 2022.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. [116J.8739]
TECHNOLOGY CORPORATE TAX BENEFIT REFUND PROGRAM.
Subdivision 1. Program
established. The commissioner
shall establish a corporate tax benefit refund program to allow new or
expanding technology and biotechnology companies in this state with unused net
operating loss carryovers under section 290.095 to surrender those tax benefits
for refunds. The refunds must be used to
assist in the funding of costs incurred by the new or expanding technology and
biotechnology company.
Subd. 2. Definitions. (a) For purposes of this section, the
following terms have the meanings given.
(b) "Biotechnology" means the
continually expanding body of fundamental knowledge about the functioning of
biological systems from the macro level to the molecular and subatomic levels,
as well as novel products, services, technologies, and subtechnologies
developed as a result of insights gained from research advances that add to
that body of fundamental knowledge.
(c) "Biotechnology company" means an corporation that:
(1) has its headquarters or base of
operations in this state;
(2) owns, has filed for, or has a valid
license to use protected, proprietary intellectual property; and
(3) is engaged in the research,
development, production, or provision of biotechnology to develop or provide products
or processes for specific commercial or public purposes including, but not
limited to, medical, pharmaceutical, nutritional, and other health-related
purposes, agricultural purposes, and environmental purposes.
(d) "Full-time employee"
means a person employed by a new or expanding technology or biotechnology
company for consideration for at least 35 hours per week, or who renders any
other standard of service generally accepted by custom or practice as full-time
employment and whose wages are subject to withholding under section 290.92; or
who is a partner of a new or expanding technology or biotechnology company who
works for the partnership for at least 35 hours per week, or who renders any
other standard of service generally accepted by custom or practice as full-time
employment, and whose distributive share of income, gain, loss, or deduction,
or whose guaranteed payments, or any combination of them, is subject to the
payment of estimated taxes, under section 289A.25. To qualify as a full-time employee, an
employee must also receive from the new or expanding technology or biotechnology company group health benefits
under a health plan as defined under section 62A.011, subdivision 3, or
under a self-insured employee welfare benefit plan as defined in United States
Code, title 29, section 1002. Full‑time
employee excludes any person who works as an independent contractor or on a
consulting basis for the new or expanding technology or biotechnology company.
(e)
"New or expanding" means a technology or biotechnology company that:
(1) on June 30 of the year in which the
corporation files an application for surrender of tax benefits under this
section and on the date of the grant of the corporate tax benefit certificate,
has fewer than 250 employees in the United States;
(2) on June 30 of the year in which the
corporation files the application, has at least one full-time employee working
in this state if the company has been incorporated for less than three years,
has at least five full-time employees working in this state if the company has
been incorporated for more than three years but fewer than five years, and has
at least ten full-time employees working in this state if the company has been
incorporated for more than five years; and
(3) on the date of the grant of the
corporate tax benefit certificate, the corporation has the number of full-time
employees in this state required by clause (2).
(f) "Technology company"
means a corporation that:
(1) has its headquarters or base of
operations in this state;
(2) owns, has filed for, or has a valid
license to use protected, proprietary intellectual property; and
(3) employs some combination of the
following: highly educated or trained
managers and workers, or both, employed in this state who use sophisticated
scientific research service or production equipment, processes, or knowledge to
discover, develop, test, transfer, or manufacture a product or service.
Subd. 3. Allocation
of tax benefits; annual limit. (a)
The commissioner, in cooperation with the commissioner of revenue, shall review
and approve applications by new or expanding technology and biotechnology
companies with unused but otherwise allowable net operating loss carryovers
under section 290.095 to surrender those tax benefits for the grant of a refund. The amount of the qualifying tax benefit is
the amount of the net operating loss carryover multiplied by the new or
expanding technology or biotechnology company's anticipated apportionment
percentage, as determined under section 290.191, for the taxable year in which
the benefit is surrendered and then multiplied by the corporate franchise tax
rate under section 290.06, subdivision 1.
(b) The commissioner must approve the
grant of no more than $15,000,000 of tax benefit refunds in each fiscal year. If the total amount of tax benefits requested
to be surrendered by approved applicants exceeds $15,000,000 for a fiscal year,
the commissioner, in cooperation with the commissioner of revenue, must not
approve the grant of more than $15,000,000 of tax benefits for that fiscal year
and shall allocate the grant of tax benefit refunds by approved corporations
using the following method:
(1) an eligible applicant with $250,000
or less of qualifying tax benefits may surrender the entire amount of its tax
benefits;
(2) an eligible applicant with more
than $250,000 of qualifying tax benefits may surrender a minimum of $250,000 of
its tax benefits; and
(3) an eligible applicant with more
than $250,000 of qualifying tax benefits may surrender additional tax benefits
determined by multiplying the applicant's tax benefits, less the minimum tax
benefits that corporation is authorized to surrender under clause (2), by a
fraction, the numerator of which is the total amount of tax benefit grants that
the commissioner is authorized to approve less the total amount of tax benefits
approved under clauses (1) and (2), and the denominator of which is the total
amount of tax benefits requested to be surrendered by all eligible applicants
less the total amount of tax benefit grants approved under clauses (1) and (2).
(c)
If the total amount of tax benefit grants that would be authorized using the
method under paragraph (b) exceeds $15,000,000 for a fiscal year, then the
commissioner, in cooperation with the commissioner of revenue, shall limit the
total amount of tax benefit grants authorized to $15,000,000 by applying the
above method on an apportioned basis.
Subd. 4. Qualifying
tax benefits and corporations. (a)
For purposes of this section, qualifying tax benefits include an eligible
applicant's unused but otherwise allowable carryover of net operating losses
multiplied by the applicant's anticipated allocation factor as determined under
section 290.191 for the taxable year in which the benefit is surrendered and
subsequently multiplied by the corporation franchise tax rate under section
290.06, subdivision 1. An eligible
applicant's qualifying tax benefits are limited to net operating losses that
the applicant requests to surrender in its application to the authority and
must not, in total, exceed the maximum amount of tax benefits that the
applicant is eligible to surrender. No
application for a corporate tax benefit certificate must be approved in which
the new or expanding technology or biotechnology company:
(1) has demonstrated positive net
operating income in any of the two previous full years of ongoing operations as
determined on its financial statements issued according to generally accepted
accounting standards endorsed by the Financial Accounting Standards Board; or
(2) is directly or indirectly at least
50 percent owned or controlled by another corporation that has demonstrated
positive net operating income in any of the two previous full years of ongoing
operations as determined on its financial statements issued according to
generally accepted accounting standards endorsed by the Financial Accounting
Standards Board or is part of a consolidated group of affiliated corporations,
as filed for federal income tax purposes, that in the aggregate has demonstrated
positive net operating income in any of the two previous full years of ongoing
operations as determined on its combined financial statements issued according
to generally accepted accounting standards endorsed by the Financial Accounting
Standards Board.
(b) The maximum lifetime value of
surrendered tax benefits that a corporation may surrender under the program is
$5,000,000.
Subd. 5. Recapture
of tax benefits. The
commissioner, in consultation with the commissioner of revenue, shall establish
procedures for the recapture of all of, or a portion of, the amount of a grant
of a corporate tax benefit certificate from the new or expanding technology or
biotechnology company receiving a grant for a refund of surrendered tax
benefits under this section if the taxpayer fails to use the refund as required
by this section or fails to maintain a headquarters or a base of operation in
this state during the five years following receipt of the refund, except if the
failure to maintain a headquarters or a base of operation in this state is due
to the liquidation of the new or expanding technology or biotechnology company.
Subd. 6. Approval
of acquisition of tax benefits; purposes; required agreement. (a) The commissioner must not issue a
corporate tax benefit certificate unless the applicant certifies that as of the
date of the grant of the certificate that it is operating as a new or expanding
technology or biotechnology company in this state and does not intend to cease
operating as a new or expanding technology or biotechnology company in this
state.
(b) The recipient of a grant under this
section must use the refund to pay expenses incurred for the operation of the
new or expanding technology or biotechnology company in this state including,
but not limited to, the expenses of fixed assets, such as the construction and
acquisition and development of real estate, materials, start-up, tenant fit‑out,
working capital, salaries, research and development expenditures, and any other
expenses determined by the commissioner to be necessary to carry out technology
or biotechnology company operations in this state.
(c)
The commissioner shall enter into a written agreement with the new or expanding
technology or biotechnology company specifying the terms and conditions of the
grant of the certificate of tax benefits.
The written agreement may require the maintenance by the new or
expanding technology or biotechnology company of a headquarters or a base of
operation in this state.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to taxable years
beginning after December 31, 2015.
Sec. 6. Minnesota Statutes 2014, section 289A.02, subdivision 7, as amended by Laws 2015, chapter 1, section 1, is amended to read:
Subd. 7. Internal
Revenue Code. Unless specifically
defined otherwise, "Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through December 31, 2014 April 1, 2015.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. Minnesota Statutes 2014, section 289A.12, is amended by adding a subdivision to read:
Subd. 19. Charity
health care services. (a) A
medical professional, dentist, or chiropractor claiming the subtraction under
section 290.01, subdivision 19b, clause (23), must file an informational report
with the commissioner documenting the value of charity health care services
that the individual provided during the taxable year. A business that employs a medical
professional, dentist, or chiropractor may also file an informational report
with the commissioner documenting the value of charity health care services its
employees provided during the taxable year.
The charity health care services reported to the commissioner must be
limited to those services covered under medical assistance and for which a
federal Medicaid match is available and must be calculated at the reimbursement
rates provided in section 256B.76.
(b) For purposes of this subdivision,
the following terms have the meanings given:
(1) "chiropractor" means an
individual licensed under chapter 148;
(2) "dentist" means an
individual licensed under chapter 150A; and
(3) "medical professional"
means an individual licensed under chapter 147, an individual licensed under
chapter 147B, and a mental health professional as defined under section
245.462, subdivision 18, or section 245.4871, subdivision 27.
(c) The commissioner shall define
charity health care services for purposes of this subdivision. In developing this definition, the
commissioner shall consider the criteria specified in Minnesota Rules, part
4650.0115, subpart 2.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 8. Minnesota Statutes 2014, section 290.01, subdivision 7, is amended to read:
Subd. 7. Resident. (a) The term "resident" means any individual domiciled in Minnesota, except that an individual is not a "resident" for the period of time that the individual is a "qualified individual" as defined in section 911(d)(1) of the Internal Revenue Code, if the qualified individual notifies the county within three months of moving out of the country that homestead status be revoked for the Minnesota residence of the qualified individual, and the property is not classified as a homestead while the individual remains a qualified individual.
(b) "Resident" also means any individual domiciled outside the state who maintains a place of abode in the state and spends in the aggregate more than one-half of the tax year in Minnesota, unless:
(1) the individual or the spouse of the individual is in the armed forces of the United States; or
(2) the individual is covered under the reciprocity provisions in section 290.081.
For purposes of this subdivision, presence within the state for any part of a calendar day constitutes a day spent in the state, except that a day spent in Minnesota for the primary purpose of receiving medical treatment by the taxpayer, or the spouse, child, or parent of the taxpayer, is not treated as a day spent in Minnesota. "Medical treatment" means treatment as defined in section 213(d)(1)(A) of the Internal Revenue Code. Individuals shall keep adequate records to substantiate the days spent outside the state.
The term "abode" means a dwelling maintained by an individual, whether or not owned by the individual and whether or not occupied by the individual, and includes a dwelling place owned or leased by the individual's spouse.
(c) In determining where an individual is domiciled, neither the commissioner nor any court shall consider:
(1) charitable contributions made
by an the individual within or without the state in
determining if the individual is domiciled in Minnesota.;
(2) the location of the individual's
attorney, certified public accountant, or financial adviser; or
(3) the place of business of a
financial institution at which the individual applies for any new type of
credit or at which the individual opens or maintains any type of account.
(d) For purposes of this subdivision,
the following terms have the meanings given them:
(1) "financial adviser" means
a financial institution or an individual engaged in business as a certified
financial planner, registered investment adviser, licensed insurance agent, or
securities broker-dealer; and
(2) "financial institution"
means a financial institution as defined in section 47.015, subdivision 1; a
state or nationally chartered credit union; or a registered broker-dealer under
the Securities and Exchange Act of 1934.
EFFECTIVE
DATE. This section is effective
for taxable years beginning after December 31, 2014.
Sec. 9. Minnesota Statutes 2014, section 290.01, subdivision 19, as amended by Laws 2015, chapter 1, section 2, is amended to read:
Subd. 19. Net income. The term "net income" means the federal taxable income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through the date named in this subdivision, incorporating the federal effective dates of changes to the Internal Revenue Code and any elections made by the taxpayer in accordance with the Internal Revenue Code in determining federal taxable income for federal income tax purposes, and with the modifications provided in subdivisions 19a to 19f.
In the case of a regulated investment company or a fund thereof, as defined in section 851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, except that:
(1) the
exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;
(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue Code must be applied by allowing a deduction for capital gain dividends and exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code; and
(3) the deduction for dividends paid must also be applied in the amount of any undistributed capital gains which the regulated investment company elects to have treated as provided in section 852(b)(3)(D) of the Internal Revenue Code.
The net income of a real estate investment trust as defined and limited by section 856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
The net income of a designated settlement fund as defined in section 468B(d) of the Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal Revenue Code.
The Internal Revenue Code of 1986, as
amended through December 31, 2014 April 1, 2015, shall be in
effect for taxable years beginning after December 31, 1996.
Except as otherwise provided, references to the Internal Revenue Code in subdivisions 19 to 19f mean the code in effect for purposes of determining net income for the applicable year.
EFFECTIVE DATE. This section is effective retroactively for
taxable years beginning after December 31, 2013.
Sec. 10. Minnesota Statutes 2014, section 290.01, subdivision 19a, is amended to read:
Subd. 19a. Additions to federal taxable income. For individuals, estates, and trusts, there shall be added to federal taxable income:
(1)(i) interest income on obligations of any state other than Minnesota or a political or governmental subdivision, municipality, or governmental agency or instrumentality of any state other than Minnesota exempt from federal income taxes under the Internal Revenue Code or any other federal statute; and
(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue Code, except:
(A) the
portion of the exempt-interest dividends exempt from state taxation under the
laws of the United States; and
(B) the portion of the exempt-interest dividends derived from interest income on obligations of the state of Minnesota or its political or governmental subdivisions, municipalities, governmental agencies or instrumentalities, but only if the portion of the exempt-interest dividends from such Minnesota sources paid to all shareholders represents 95 percent or more of the exempt-interest dividends, including any dividends exempt under subitem (A), that are paid by the regulated investment company as defined in section 851(a) of the Internal Revenue Code, or the fund of the regulated investment company as defined in section 851(g) of the Internal Revenue Code, making the payment; and
(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal government described in section 7871(c) of the Internal Revenue Code shall be treated as interest income on obligations of the state in which the tribe is located;
(2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or accrued within the taxable year under this chapter and the amount of taxes based on net income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state or to any province or territory of Canada, to the extent allowed as a deduction under section 63(d) of the Internal Revenue Code, but the addition may not be more than the amount by which the
state itemized deduction exceeds the amount of the standard deduction as defined in section 63(c) of the Internal Revenue Code, minus any addition that would have been required under clause (17) if the taxpayer had claimed the standard deduction. For the purpose of this clause, income, sales and use, motor vehicle sales, or excise taxes are the last itemized deductions disallowed under clause (15);
(3) the capital gain amount of a lump-sum distribution to which the special tax under section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
(4) the amount of income taxes paid or accrued within the taxable year under this chapter and taxes based on net income paid to any other state or any province or territory of Canada, to the extent allowed as a deduction in determining federal adjusted gross income. For the purpose of this paragraph, income taxes do not include the taxes imposed by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;
(5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10 other than expenses or interest used in computing net interest income for the subtraction allowed under subdivision 19b, clause (1);
(6) the amount of a partner's pro rata share of net income which does not flow through to the partner because the partnership elected to pay the tax on the income under section 6242(a)(2) of the Internal Revenue Code;
(7) 80 percent of the depreciation deduction allowed under section 168(k) of the Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that in the taxable year generates a deduction for depreciation under section 168(k) and the activity generates a loss for the taxable year that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is limited to excess of the depreciation claimed by the activity under section 168(k) over the amount of the loss from the activity that is not allowed in the taxable year. In succeeding taxable years when the losses not allowed in the taxable year are allowed, the depreciation under section 168(k) is allowed;
(8) 80 percent of the amount by which the deduction allowed by section 179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003;
(9) to the extent deducted in computing federal taxable income, the amount of the deduction allowable under section 199 of the Internal Revenue Code;
(10) the amount of expenses disallowed under section 290.10, subdivision 2;
(11) for taxable years beginning before January 1, 2010, the amount deducted for qualified tuition and related expenses under section 222 of the Internal Revenue Code, to the extent deducted from gross income;
(12) for taxable years beginning before January 1, 2010, the amount deducted for certain expenses of elementary and secondary school teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted from gross income;
(13) discharge of indebtedness income resulting from reacquisition of business indebtedness and deferred under section 108(i) of the Internal Revenue Code;
(14) changes to federal taxable income attributable to a net operating loss that the taxpayer elected to carry back for more than two years for federal purposes but for which the losses can be carried back for only two years under section 290.095, subdivision 11, paragraph (c);
(15) the amount of disallowed itemized deductions, but the amount of disallowed itemized deductions plus the addition required under clause (2) may not be more than the amount by which the itemized deductions as allowed under section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of the Internal Revenue Code, and reduced by any addition that would have been required under clause (17) if the taxpayer had claimed the standard deduction:
(i) the amount of disallowed itemized deductions is equal to the lesser of:
(A) three percent of the excess of the taxpayer's federal adjusted gross income over the applicable amount; or
(B) 80 percent of the amount of the itemized deductions otherwise allowable to the taxpayer under the Internal Revenue Code for the taxable year;
(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a married individual filing a separate return. Each dollar amount shall be increased by an amount equal to:
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue Code for the calendar year in which the taxable year begins, by substituting "calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;
(iii) the term "itemized deductions" does not include:
(A) the deduction for medical expenses under section 213 of the Internal Revenue Code;
(B) any deduction for investment interest as defined in section 163(d) of the Internal Revenue Code; and
(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue Code or for losses described in section 165(d) of the Internal Revenue Code;
(16) the amount of disallowed personal exemptions for taxpayers with federal adjusted gross income over the threshold amount:
(i) the disallowed personal exemption amount is equal to the number of personal exemptions allowed under section 151(b) and (c) of the Internal Revenue Code multiplied by the dollar amount for personal exemptions under section 151(d)(1) and (2) of the Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal Revenue Code, and by the applicable percentage;
(ii) "applicable percentage" means two percentage points for each $2,500 (or fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable year exceeds the threshold amount. In the case of a married individual filing a separate return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In no event shall the applicable percentage exceed 100 percent;
(iii) the term "threshold amount" means:
(A) $150,000 in the case of a joint return or a surviving spouse;
(B) $125,000 in the case of a head of a household;
(C) $100,000 in the case of an individual who is not married and who is not a surviving spouse or head of a household; and
(D) $75,000 in the case of a married individual filing a separate return; and
(iv) the thresholds shall be increased by an amount equal to:
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment
determined under section 1(f)(3) of the Internal Revenue Code for the calendar
year in which the taxable year begins, by substituting "calendar year
1990" for "calendar year 1992" in subparagraph (B) thereof; and
(17) to the extent deducted in the
computation of federal taxable income, for taxable years beginning after
December 31, 2010, and before January 1, 2014, the difference between the
standard deduction allowed under section 63(c) of the Internal Revenue Code and
the standard deduction allowed for 2011, 2012, and 2013 under the Internal
Revenue Code as amended through December 1, 2010.; and
(18) the amount withdrawn by a
participant in the Minnesota long-term care savings plan under section 16A.128
by a person who is not a qualified individual or for any reason other than a
transfer of funds to a spouse, payment of long-term care expenses or long-term
care insurance premiums, or the death of the participant, including withdrawals
made by reason of cancellation of the participation agreement or termination of
the plan.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 11. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:
Subd. 19b. Subtractions from federal taxable income. For individuals, estates, and trusts, there shall be subtracted from federal taxable income:
(1) net interest income on obligations of any authority, commission, or instrumentality of the United States to the extent includable in taxable income for federal income tax purposes but exempt from state income tax under the laws of the United States;
(2) if included in federal taxable income, the amount of any overpayment of income tax to Minnesota or to any other state, for any previous taxable year, whether the amount is received as a refund or as a credit to another taxable year's income tax liability;
(3) the amount paid to others, less the
amount used to claim the credit allowed under section 290.0674, and amounts
used to claim the credit under section 290.067, not to exceed $1,625
$2,500 for each qualifying child in grades a prekindergarten
educational program or in kindergarten to through grade 6 and
$2,500 $3,750 for each qualifying child in grades 7 to through
12, for tuition, textbooks, and transportation of each qualifying child in
attending an elementary or secondary school situated in Minnesota, North
Dakota, South Dakota, Iowa, or Wisconsin, wherein a resident of this state may
legally fulfill the state's compulsory attendance laws, which is not operated
for profit, and which adheres to the provisions of the Civil Rights Act of 1964
and chapter 363A. For the purposes of
this clause, "tuition" includes fees or tuition as defined in section
290.0674, subdivision 1, clause (1). As
used in this clause, "textbooks" includes books and other
instructional materials and equipment purchased or leased for use in elementary
and secondary schools in teaching only those subjects legally and commonly
taught in public elementary and secondary schools in this state. Equipment expenses qualifying for deduction
includes expenses as defined and limited in section 290.0674, subdivision 1,
clause (3). "Textbooks" does
not include instructional books and materials used in the teaching of religious
tenets, doctrines, or worship, the purpose of which
is
to instill such tenets, doctrines, or worship, nor does it include books or
materials for, or transportation to, extracurricular activities including
sporting events, musical or dramatic events, speech activities, driver's
education, or similar programs. No
deduction is permitted for any expense the taxpayer incurred in using the
taxpayer's or the qualifying child's vehicle to provide such transportation for
a qualifying child education-related expenses, as defined in section
290.0674, subdivision 1. For
purposes of the subtraction provided by this clause, "qualifying
child" has the meaning given in section 32(c)(3) of the Internal Revenue
Code; and "prekindergarten educational program" has the meaning
given in section 290.0674, subdivision 1.
The maximum amounts allowed for each qualifying child under this clause
must be adjusted for inflation. The
commissioner shall adjust the maximum amount by the percentage determined under
the provisions of section 1(f) of the Internal Revenue Code, except that in
section 1(f)(3)(B) the word "2014" is substituted for the word
"1992." For 2016, the
commissioner shall then determine the percent change from the 12 months ending
on August 31, 2014, to the 12 months ending on August 31, 2015, and in each
subsequent year, from the 12 months ending August 31, 2014, to the 12 months
ending on August 31 of the year preceding the taxable year. The amounts as adjusted for inflation must be
rounded to the nearest $10 amount. If
the amount ends in $5, the amount is rounded up to the nearest $10 amount. The determination of the commissioner under
this subdivision is not a rule subject to the Administrative Procedure Act in
chapter 14, including section 14.386;
(4) income as provided under section 290.0802;
(5) to the extent included in federal adjusted gross income, income realized on disposition of property exempt from tax under section 290.491;
(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) of the Internal Revenue Code in determining federal taxable income by an individual who does not itemize deductions for federal income tax purposes for the taxable year, an amount equal to 50 percent of the excess of charitable contributions over $500 allowable as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, under the provisions of Public Law 109-1 and Public Law 111-126;
(7) for individuals who are allowed a federal foreign tax credit for taxes that do not qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover of subnational foreign taxes for the taxable year, but not to exceed the total subnational foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, "federal foreign tax credit" means the credit allowed under section 27 of the Internal Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed under section 904(c) of the Internal Revenue Code minus national level foreign taxes to the extent they exceed the federal foreign tax credit;
(8) in each of the five tax years immediately following the tax year in which an addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, clause (12), in the case of a shareholder of an S corporation, minus the positive value of any net operating loss under section 172 of the Internal Revenue Code generated for the tax year of the addition. The resulting delayed depreciation cannot be less than zero;
(9) job opportunity building zone income as provided under section 469.316;
(10) to the extent included in federal taxable income, the amount of compensation paid to members of the Minnesota National Guard or other reserve components of the United States military for active service, including compensation for services performed under the Active Guard Reserve (AGR) program. For purposes of this clause, "active service" means (i) state active service as defined in section 190.05, subdivision 5a, clause (1); or (ii) federally funded state active service as defined in section 190.05, subdivision 5b, and "active service" includes service performed in accordance with section 190.08, subdivision 3;
(11) to the extent included in federal taxable income, the amount of compensation paid to Minnesota residents who are members of the armed forces of the United States or United Nations for active duty performed under United States Code, title 10; or the authority of the United Nations;
(12) an amount, not to exceed $10,000, equal to qualified expenses related to a qualified donor's donation, while living, of one or more of the qualified donor's organs to another person for human organ transplantation. For purposes of this clause, "organ" means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; "human organ transplantation" means the medical procedure by which transfer of a human organ is made from the body of one person to the body of another person; "qualified expenses" means unreimbursed expenses for both the individual and the qualified donor for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses may be subtracted under this clause only once; and "qualified donor" means the individual or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An individual may claim the subtraction in this clause for each instance of organ donation for transplantation during the taxable year in which the qualified expenses occur;
(13) in each of the five tax years
immediately following the tax year in which an addition is required under
subdivision 19a, clause (8), or 19c, clause (13), in the case of a shareholder
of a corporation that is an S corporation, an amount equal to one-fifth of
the addition made by the taxpayer under subdivision 19a, clause (8), or 19c,
clause (13), in the case of a shareholder of a corporation that is an S corporation,
minus the positive value of any net operating loss under section 172 of the
Internal Revenue Code generated for the tax year of the addition. If the net operating loss exceeds the
addition for the tax year, a subtraction is not allowed under this clause the
section 179 expensing subtraction as provided under section 290.0803,
subdivision 3;
(14) to the extent included in the federal taxable income of a nonresident of Minnesota, compensation paid to a service member as defined in United States Code, title 10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);
(15) to the extent included in federal taxable income, the amount of national service educational awards received from the National Service Trust under United States Code, title 42, sections 12601 to 12604, for service in an approved Americorps National Service program;
(16) to the extent included in federal taxable income, discharge of indebtedness income resulting from reacquisition of business indebtedness included in federal taxable income under section 108(i) of the Internal Revenue Code. This subtraction applies only to the extent that the income was included in net income in a prior year as a result of the addition under subdivision 19a, clause (13);
(17) the amount of the net operating loss allowed under section 290.095, subdivision 11, paragraph (c);
(18) the amount of expenses not allowed for federal income tax purposes due to claiming the railroad track maintenance credit under section 45G(a) of the Internal Revenue Code;
(19) the amount of the limitation on itemized deductions under section 68(b) of the Internal Revenue Code;
(20) the amount of the phaseout of
personal exemptions under section 151(d) of the Internal Revenue Code; and
(21) to the extent included in federal
taxable income, the amount of qualified transportation fringe benefits
described in section 132(f)(1)(A) and (B) of the Internal Revenue Code. The subtraction is limited to the lesser of
the amount of qualified transportation fringe benefits received in excess of
the limitations under section 132(f)(2)(A) of the Internal Revenue Code for the
year or the difference between the maximum qualified parking benefits
excludable under section 132(f)(2)(B) of the Internal Revenue Code minus the
amount of transit benefits excludable under section 132(f)(2)(A) of the
Internal Revenue Code.;
(22)
to the extent included in federal taxable income, an amount not to exceed $40
per employee per calendar month, provided that:
(i) for an individual, the subtraction
equals the value of the use of an on-premises fitness facility provided by an
employer to the individual, or the value of any fees, dues, or membership
expenses paid by an employer on behalf of the individual to a fitness facility;
(ii) for an S corporation, sole
proprietor, or partnership, the subtraction equals the value of any fees, dues,
or membership expenses paid on behalf of its employees to a fitness facility;
(iii) the subtraction under this clause
applies only if the use of on-premises fitness facilities or the payment of
fees, dues, or membership expenses to a fitness facility are available on substantially
the same terms to each member of a group of employees defined under a
reasonable classification by the employer, but no classification may include
only highly compensated employees, as defined under section 414(q) of the
Internal Revenue Code, or any other group that includes only executives,
directors, or other managerial employees;
(iv) the subtraction under this clause
is only allowed to employers and employees for months in which the employee
uses the fitness facility for the preservation, maintenance, encouragement, or
development of physical fitness on at least eight days; and
(v) for purposes of this clause,
"fitness facility" means a facility located in the state:
(A) that provides instruction in a
program of physical exercise; offers facilities for the preservation,
maintenance, encouragement, or development of physical fitness; or is the site
of such a program of a state or local government;
(B) that is not a private club owned
and operated by its members;
(C) that does not offer golf, hunting,
sailing, or horseback riding facilities;
(D) whose fitness facility is not
incidental to its overall function and purpose; and
(E)
that is compliant with antidiscrimination laws under chapter 363A and
applicable federal antidiscrimination laws;
(23) to the extent not deducted in
computing federal taxable income, the value of charity health care services
provided by a medical professional as defined under section 289A.12,
subdivision 19, paragraph (b), clause (3), a dentist licensed under chapter
150A, or a chiropractor licensed under chapter 148, and acting within the scope
of the individual's license. For the
purposes of this clause, the value of charity health care services must be
calculated at the applicable reimbursement rate provided under section 256B.76
for the medical professional, dentist, or chiropractor for services for which a
federal Medicaid match is available;
(24) for an individual who does not claim the credit under section 290.0677, subdivision 1a, and receives compensation from a pension or other retirement pay from the federal government for service in the military, as computed under United States Code, title 10, sections 1401 to 1414, 1447 to 1455, or 12732 to 12733, $1,000 for each year or portion of a year of military service, up to a maximum of 20 years of military service and a maximum subtraction of $20,000. In the case of a married couple filing jointly, each spouse is eligible for this subtraction. The subtraction under this clause is not limited to the amount of compensation received from a pension or other retirement pay;
(25) to the extent included in federal taxable income, a percentage of Social Security benefits. For purposes of this clause, for the taxable year beginning after December 31, 2014, and before January 1, 2016, the percentage is 20 percent, and the percentage increases by 20 percentage points in each taxable year thereafter until the percentage of Social Security benefits allowed as a subtraction under this clause is 100 percent;
(26) the amount equal to the
contributions made during the taxable year to a college savings plan account
qualifying under section 529 of the Internal Revenue Code, not including
amounts rolled over from other college savings plan accounts, and not to exceed
$3,000 for married couples filing joint returns and $1,500 for all other filers. The subtraction must not include any amount
used to claim the credit allowed under section 290.0684;
(27) to the extent not deducted in
determining federal taxable income, an amount equal to contributions made to
the Minnesota long-term care savings plan under section 16A.728, up to a
maximum of $2,000 for married individuals filing joint returns and $1,000 for
any other individual, and any investment earnings made as a participant in the
Minnesota long-term care savings plan; and
(28) for an individual who is a first
responder, an amount equal to the sum of:
(i) $7.50 per day of deemed meal expenses
for two days in each week during the taxable year that the eligible individual
was on call for fewer than 21 hours; plus
(ii) $7.50 per day of deemed meal
expenses for four days in each week during the taxable year that the eligible
individual was on call for 21 or more hours.
For purposes of this clause, "first responder" means an individual who meets the definition of:
(A) ambulance service personnel in
section 144E.001, subdivision 3a;
(B) an emergency medical responder in section 144E.001, subdivision 6;
(C) a volunteer ambulance attendant in section 144E.001, subdivision 15;
(D) a full-time firefighter in section
299N.03, subdivision 5; or
(E) a volunteer firefighter in section
299N.03, subdivision 7.