1.1                          A bill for an act 
  1.2             relating to education; providing for expanded 
  1.3             interdistrict open enrollment and post-secondary 
  1.4             enrollment options; amending Minnesota Statutes 1996, 
  1.5             sections 120.062, subdivisions 3, 6, 7, and 11; 
  1.6             124.17, subdivisions 1d, 1e, and by adding 
  1.7             subdivisions; and 124A.036, subdivisions 5 and 6. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 120.062, 
  1.10  subdivision 3, is amended to read: 
  1.11     Subd. 3.  [CLOSED DISTRICTS LIMITED ENROLLMENT OF 
  1.12  NONRESIDENT PUPILS.] (a) A school board may, by 
  1.13  resolution, determine that limit the enrollment of nonresident 
  1.14  pupils may not attend any of in its schools or programs 
  1.15  according to this section to a number not less than the lesser 
  1.16  of: 
  1.17     (1) one percent of the total enrollment at each grade level 
  1.18  in the district; or 
  1.19     (2) the number of district residents at that grade level 
  1.20  enrolled in a nonresident district according to this section.  
  1.21     (b) A district that limits enrollment of nonresident pupils 
  1.22  under paragraph (a) shall report to the commissioner by July 15 
  1.23  on the number of nonresident pupils denied admission due to the 
  1.24  limitations on the enrollment of nonresident pupils. 
  1.25     Sec. 2.  Minnesota Statutes 1996, section 120.062, 
  1.26  subdivision 6, is amended to read: 
  2.1      Subd. 6.  [NONRESIDENT DISTRICT PROCEDURES.] A district 
  2.2   that does not exclude nonresident pupils, according to 
  2.3   subdivision 3, shall notify the parent or guardian in writing by 
  2.4   February 15 whether the application has been accepted or 
  2.5   rejected.  If an application is rejected, the district must 
  2.6   state in the notification the reason for rejection.  The parent 
  2.7   or guardian shall notify the nonresident district by March 1 
  2.8   whether the pupil intends to enroll in the nonresident 
  2.9   district.  Notice of intent to enroll in the nonresident 
  2.10  district obligates the pupil to attend the nonresident district 
  2.11  during the following school year, unless the school boards of 
  2.12  the resident and the nonresident districts agree in writing to 
  2.13  allow the pupil to transfer back to the resident district, or 
  2.14  the pupil's parents or guardians change residence to another 
  2.15  district.  If a parent or guardian does not notify the 
  2.16  nonresident district, the pupil may not enroll in that 
  2.17  nonresident district during the following school year, unless 
  2.18  the school boards of the resident and nonresident district agree 
  2.19  otherwise.  The nonresident district shall notify the resident 
  2.20  district by March 15 of the pupil's intent to enroll in the 
  2.21  nonresident district.  The same procedures apply to a pupil who 
  2.22  applies to transfer from one participating nonresident district 
  2.23  to another participating nonresident district. 
  2.24     Sec. 3.  Minnesota Statutes 1996, section 120.062, 
  2.25  subdivision 7, is amended to read: 
  2.26     Subd. 7.  [BASIS FOR DECISIONS.] The school board must 
  2.27  adopt, by resolution, specific standards for acceptance and 
  2.28  rejection of applications.  Standards may include the capacity 
  2.29  of a program, class, grade level, or school building.  The 
  2.30  school board may not reject applications for enrollment in a 
  2.31  particular grade level if the nonresident enrollment at that 
  2.32  grade level does not exceed the limit set by the board under 
  2.33  subdivision 3.  Standards may not include previous academic 
  2.34  achievement, athletic or other extracurricular ability, 
  2.35  disabling conditions, proficiency in the English language, or 
  2.36  previous disciplinary proceedings, or the student's district of 
  3.1   residence.  
  3.2      Sec. 4.  Minnesota Statutes 1996, section 120.062, 
  3.3   subdivision 11, is amended to read: 
  3.4      Subd. 11.  [INFORMATION.] A district that does not exclude 
  3.5   nonresident pupils according to subdivision 3 shall make 
  3.6   information about the district, schools, programs, policies, and 
  3.7   procedures available to all interested people.  
  3.8      Sec. 5.  Minnesota Statutes 1996, section 124.17, 
  3.9   subdivision 1d, is amended to read: 
  3.10     Subd. 1d.  [FISCAL YEAR 1998 AFDC PUPIL UNITS.] AFDC pupil 
  3.11  units for fiscal year 1993 and thereafter 1998 must be computed 
  3.12  according to this subdivision.  
  3.13     (a) The AFDC concentration percentage for a district equals 
  3.14  the product of 100 times the ratio of:  
  3.15     (1) the number of pupils enrolled in the district from 
  3.16  families receiving aid to families with dependent children 
  3.17  according to subdivision 1e; to 
  3.18     (2) the number of pupils in average daily membership 
  3.19  according to subdivision 1e enrolled in the district. 
  3.20     (b) The AFDC pupil weighting factor for a district equals 
  3.21  the lesser of one or the quotient obtained by dividing the 
  3.22  district's AFDC concentration percentage by 11.5.  
  3.23     (c) The AFDC pupil units for a district for fiscal year 
  3.24  1993 and thereafter equals the product of:  
  3.25     (1) the number of pupils enrolled in the district from 
  3.26  families receiving aid to families with dependent children 
  3.27  according to subdivision 1e; times 
  3.28     (2) the AFDC pupil weighting factor for the district; times 
  3.29     (3) .67. 
  3.30     Sec. 6.  Minnesota Statutes 1996, section 124.17, 
  3.31  subdivision 1e, is amended to read: 
  3.32     Subd. 1e.  [FISCAL YEAR 1998 AFDC PUPIL COUNTS.] AFDC pupil 
  3.33  counts and average daily membership for subdivisions 1b 
  3.34  and subdivision 1d shall be determined according to this 
  3.35  subdivision: 
  3.36     (a) For districts where the number of pupils from families 
  4.1   receiving aid to families with dependent children has increased 
  4.2   over the preceding year for each of the two previous years, the 
  4.3   number of pupils enrolled in the district from families 
  4.4   receiving aid to families with dependent children shall be those 
  4.5   counted on October 1 of the previous school year.  The average 
  4.6   daily membership used shall be from the previous school year. 
  4.7      (b) For districts that do not meet the requirement of 
  4.8   paragraph (a), the number of pupils enrolled in the district 
  4.9   from families receiving aid to families with dependent children 
  4.10  shall be the average number of pupils on October 1 of the second 
  4.11  previous school year and October 1 of the previous school year.  
  4.12  The average daily membership used shall be the average number 
  4.13  enrolled in the previous school year and the second previous 
  4.14  school year. 
  4.15     (c) Notwithstanding paragraphs (a) and (b), for charter 
  4.16  schools in the first three years of operation, the number of 
  4.17  pupils enrolled from families receiving AFDC shall be those 
  4.18  counted on October 1 of the current school year.  The average 
  4.19  daily membership used shall be from the current school year.  
  4.20     Sec. 7.  Minnesota Statutes 1996, section 124.17, is 
  4.21  amended by adding a subdivision to read: 
  4.22     Subd. 1g.  [AFDC PUPIL UNITS.] AFDC pupil units for fiscal 
  4.23  year 1999 and thereafter must be computed according to this 
  4.24  subdivision. 
  4.25     (a) The AFDC concentration percentage for a district equals 
  4.26  the product of 100 times the ratio of: 
  4.27     (1) the number of pupils residing in the district from 
  4.28  families receiving aid to families with dependent children 
  4.29  according to subdivision 1h, paragraph (a); to 
  4.30     (2) the number of pupils in average daily membership 
  4.31  according to subdivision 1h, paragraph (a), residing in the 
  4.32  district. 
  4.33     (b) The AFDC pupil weighting factor for AFDC pupils 
  4.34  residing in a district equals the lesser of one or the quotient 
  4.35  obtained by dividing the district's AFDC concentration 
  4.36  percentage by 11.5. 
  5.1      (c) The AFDC pupil units for a district for fiscal year 
  5.2   1999 and thereafter for each pupil enrolled in the district from 
  5.3   a family receiving aid to families with dependent children 
  5.4   according to subdivision 1h, paragraph (b), equals the product 
  5.5   of: 
  5.6      (1) the AFDC pupil weighting factor for pupil's district of 
  5.7   residence; times 
  5.8      (2) .67. 
  5.9      Sec. 8.  Minnesota Statutes 1996, section 124.17, is 
  5.10  amended by adding a subdivision to read: 
  5.11     Subd. 1h.  [AFDC PUPIL COUNTS.] (a) AFDC pupil counts and 
  5.12  average daily membership for subdivision 1g, paragraph (a), 
  5.13  shall be determined according to this paragraph. 
  5.14     (i) For districts where the number of resident pupils from 
  5.15  families receiving aid to families with dependent children has 
  5.16  increased over the preceding year for each of the two previous 
  5.17  years, the number of pupils residing in the district from 
  5.18  families receiving aid to families with dependent children shall 
  5.19  be those counted on October 1 of the previous school year.  The 
  5.20  average daily membership used shall be from the previous school 
  5.21  year. 
  5.22     (ii) For districts that do not meet the requirement of 
  5.23  paragraph (i), the number of pupils residing in the district 
  5.24  from families receiving aid to families with dependent children 
  5.25  shall be the average number of pupils on October 1 of the second 
  5.26  previous school year and October 1 of the previous school year.  
  5.27     The average daily membership used shall be the average 
  5.28  number of pupils residing in the district in the previous school 
  5.29  year and the second previous school year. 
  5.30     (b) AFDC pupil counts for subdivision 1g, paragraph (c), 
  5.31  shall be determined according to this paragraph. 
  5.32     (i) For districts where the number of pupils from families 
  5.33  receiving aid to families with dependent children enrolled in 
  5.34  the district has increased over the preceding year for each of 
  5.35  the two previous years, the pupils enrolled in the district from 
  5.36  families receiving aid to families with dependent children shall 
  6.1   be those counted on October 1 of the previous school year. 
  6.2      (ii) For districts that do not meet the requirement of 
  6.3   paragraph (i), pupils enrolled in the district from families 
  6.4   receiving aid to families with dependent children shall be those 
  6.5   counted on October 1 of the previous school year times one-half, 
  6.6   plus those counted on October 1 of the second previous school 
  6.7   year times one-half.  
  6.8      Notwithstanding clauses (i) and (ii), for charter schools 
  6.9   in the first three years of operation, the number of pupils 
  6.10  enrolled from families receiving aid to families with dependent 
  6.11  children shall be those counted on October 1 of the current 
  6.12  school year. 
  6.13     Sec. 9.  Minnesota Statutes 1996, section 124A.036, 
  6.14  subdivision 5, is amended to read: 
  6.15     Subd. 5.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
  6.16  education aid for districts must be adjusted for each pupil 
  6.17  attending a nonresident district under sections 120.062, 
  6.18  120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22.  
  6.19  The adjustments must be made according to this subdivision. 
  6.20     (a) General education aid paid to a resident district must 
  6.21  be reduced by an amount equal to the sum of: 
  6.22     (1) the general education revenue exclusive of compensatory 
  6.23  basic skills revenue; and 
  6.24     (2) the referendum equalization revenue approved or renewed 
  6.25  after July 1, 1997, attributable to the pupil in the resident 
  6.26  district. 
  6.27     (b) General education aid paid to a district serving a 
  6.28  pupil in programs listed in this subdivision shall be increased 
  6.29  by an amount equal to the sum of: 
  6.30     (1) the general education revenue exclusive of compensatory 
  6.31  basic skills revenue; and 
  6.32     (2) the referendum equalization revenue approved or renewed 
  6.33  after July 1, 1997, attributable to the pupil in the nonresident 
  6.34  district.  
  6.35     (c) If the amount of the reduction to be made from the 
  6.36  general education aid of the resident district is greater than 
  7.1   the amount of general education aid otherwise due the district, 
  7.2   the excess reduction must be made from other state aids due the 
  7.3   district. 
  7.4      (d) The district of residence shall pay tuition to a 
  7.5   district or an area learning center, operated according to 
  7.6   paragraph (e), providing special instruction and services to a 
  7.7   pupil with a disability, as defined in section 120.03, or a 
  7.8   pupil, as defined in section 120.181, who is enrolled in a 
  7.9   program listed in this subdivision.  The tuition shall be equal 
  7.10  to (1) the actual cost of providing special instruction and 
  7.11  services to the pupil, including a proportionate amount for debt 
  7.12  service and for capital expenditure facilities and equipment, 
  7.13  and debt service but not including any amount for 
  7.14  transportation, minus (2) the amount of general education aid, 
  7.15  the amount of capital expenditure facilities aid and capital 
  7.16  expenditure equipment aid received under section 124.245, 
  7.17  subdivision 6, and special education aid, attributable to that 
  7.18  pupil, that is received by the district providing special 
  7.19  instruction and services. 
  7.20     (e) An area learning center operated by a service 
  7.21  cooperative, intermediate district, education district, or a 
  7.22  joint powers cooperative may elect through the action of the 
  7.23  constituent boards to charge tuition for pupils rather than to 
  7.24  calculate general education aid adjustments under paragraph (a), 
  7.25  (b), or (c).  The tuition must be equal to the greater of the 
  7.26  average general education revenue per pupil unit attributable to 
  7.27  the pupil, or the actual cost of providing the instruction, 
  7.28  excluding transportation costs, if the pupil meets the 
  7.29  requirements of section 120.03 or 120.181. 
  7.30     Sec. 10.  Minnesota Statutes 1996, section 124A.036, 
  7.31  subdivision 6, is amended to read: 
  7.32     Subd. 6.  [CHARTER SCHOOLS.] (a) The general education aid 
  7.33  for districts must be adjusted for each pupil attending a 
  7.34  charter school under section 120.064.  The adjustments must be 
  7.35  made according to this subdivision. 
  7.36     (b) General education aid paid to a resident district must 
  8.1   be reduced by an amount equal to the sum of: 
  8.2      (1) the general education revenue exclusive of compensatory 
  8.3   basic skills revenue; and 
  8.4      (2) the referendum equalization revenue approved or renewed 
  8.5   after July 1, 1997. 
  8.6      (c) General education aid paid to a district in which a 
  8.7   charter school not providing transportation according to section 
  8.8   120.064, subdivision 15, is located shall be increased by an 
  8.9   amount equal to the product of:  (1) the sum of $170, plus the 
  8.10  transportation sparsity allowance for the district, plus the 
  8.11  transportation transition allowance for the district; times (2) 
  8.12  the pupil units attributable to the pupil.  
  8.13     (d) If the amount of the reduction to be made from the 
  8.14  general education aid of the resident district is greater than 
  8.15  the amount of general education aid otherwise due the district, 
  8.16  the excess reduction must be made from other state aids due the 
  8.17  district.