1.1 	A bill for an act
1.2 	relating to education finance; creating the early graduation achievement 
1.3 	scholarship program; appropriating money;amending Minnesota Statutes 
1.4 	2010, sections 120B.07; 126C.126; 126C.20; proposing coding for new law 
1.5 	in Minnesota Statutes, chapter 120B.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2010, section 120B.07, is amended to read:
1.8 	120B.07 EARLY GRADUATION.
1.9 	(a) Notwithstanding any law to the contrary, any secondary school student who has 
1.10 	completed all required courses or standards may, with the approval of the student, the 
1.11 	student's parent or guardian, and local school officials, graduate before the completion 
1.12 	of the school year.
1.13 	(b) General education revenue attributable to the student must be paid as though the 
1.14 	student was in attendance for the entire year unless the student participates in the early 
1.15 	graduation achievement scholarship program under section 120B.08.

1.16 	EFFECTIVE DATE. This section is effective July 1, 2011.

1.17 	Sec. 2. [120B.08] EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP 
1.18 	PROGRAM.
1.19 		Subdivision 1.Participation. A student who qualifies for early graduation under 
1.20 	section 120B.07 is eligible to participate in the early graduation achievement scholarship 
1.21 	program.
1.22 		Subd. 2.Scholarship amounts. A student who participates in the early graduation 
1.23 	achievement scholarship program is eligible for a scholarship of $2,500 if the student 
2.1 	qualifies for graduation one semester or two trimesters early, $5,000 if the student qualifies 
2.2 	for graduation two semesters or three or four trimesters early, or $7,500 if the student 
2.3 	qualifies for graduation three or more semesters or five or more trimesters early.
2.4 		Subd. 3.Scholarship uses. An early graduation achievement scholarship may be 
2.5 	used at any accredited institution of higher education.
2.6 		Subd. 4.Application. A qualifying student may apply to the commissioner of 
2.7 	education for an early graduation achievement scholarship. The application must be in 
2.8 	the form and manner specified by the commissioner. Upon verification of the qualifying 
2.9 	student's course completion necessary for graduation, the department must issue the 
2.10 	student a certificate showing the student's scholarship amount.
2.11 		Subd. 5.Enrollment verification. A student who qualifies under this section 
2.12 	and enrolls in an accredited higher education institution must submit a form to the 
2.13 	commissioner verifying the student's enrollment in the higher education institution and the 
2.14 	tuition charges for that semester. Within 15 days of receipt of a student's enrollment and 
2.15 	tuition verification form, the commissioner must issue a scholarship check to the student in 
2.16 	the lesser of the tuition amount for that semester or the maximum amount of the student's 
2.17 	early graduation achievement scholarship. A student may continue to submit enrollment 
2.18 	verification forms to the commissioner until the student has used the full amount of the 
2.19 	student's graduation achievement scholarship.
2.20 		Subd. 6.General education money transferred. The commissioner must transfer 
2.21 	the amounts necessary to fund the early graduation achievement scholarships from the 
2.22 	general education aid appropriation for that year.

2.23 	EFFECTIVE DATE. This section is effective for fiscal years 2012 and later.

2.24 	Sec. 3. Minnesota Statutes 2010, section 126C.126, is amended to read:
2.25 	126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR 
2.26 	ALL-DAY KINDERGARTEN AND PREKINDERGARTEN.
2.27 	(a) In order to provide additional revenue for an optional all-day kindergarten 
2.28 	program, a district may reallocate general education revenue attributable to 12th grade 
2.29 	students who have graduated early under section 120B.07 and who do not participate in 
2.30 	the early graduation achievement scholarship program under section 120B.08. 
2.31 	(b) A school district may spend general education revenue on extended time 
2.32 	kindergarten and prekindergarten programs.

2.33 	EFFECTIVE DATE. This section is effective for fiscal years 2012 and later.

3.1 	Sec. 4. Minnesota Statutes 2010, section 126C.20, is amended to read:
3.2 	126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.
3.3 	There is annually appropriated from the general fund to the department the amount 
3.4 	necessary for general education aid under section 126C.13 and the early graduation 
3.5 	achievement scholarship program under section 120B.08. This amount must be reduced 
3.6 	by the amount of any money specifically appropriated for the same purpose in any year 
3.7 	from any state fund.

3.8 	EFFECTIVE DATE. This section is effective for fiscal years 2012 and later.