1.1                          A bill for an act
  1.2             relating to education finance; authorizing an aid for 
  1.3             certain expenditures for retired employees; proposing 
  1.4             coding for new law in Minnesota Statutes, chapter 126C.
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [126C.195] [RETIRED EMPLOYEE AID.] 
  1.7      Subdivision 1.  [ELIGIBILITY.] A district that has 
  1.8   declining enrollment, as measured by the district's average 
  1.9   daily membership served in the previous year to the district's 
  1.10  average daily membership served in the second preceding year, is 
  1.11  eligible for aid for retired employee benefits. 
  1.12     Subd. 2.  [DEFINITIONS.] For purposes of this section, an 
  1.13  eligible retired employee is a licensed employee who, at the 
  1.14  time of withdrawal from active service, has met the age and 
  1.15  service requirements necessary to receive an annuity from a 
  1.16  Minnesota teacher retirement plan. 
  1.17     Subd. 3.  [AID AMOUNT.] A district that qualifies for aid 
  1.18  under this section is eligible for aid equal to the amount the 
  1.19  district is required by the collective bargaining agreement in 
  1.20  effect on March 30, 2004, to pay for employee retirement costs, 
  1.21  including health care costs, for eligible retired employees.  
  1.22  The aid amount in this section is reduced by any other revenue 
  1.23  the district receives for this purpose.  
  1.24     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  1.25  fiscal year 2005.