1.1                          A bill for an act
  1.2             relating to education; authorizing direct payments to 
  1.3             cooperative units in certain circumstances; amending 
  1.4             Minnesota Statutes 1996, sections 124.193; and 
  1.5             124.195, by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 124.193, is 
  1.8   amended to read: 
  1.9      124.193 [PROHIBITED AID AND LEVIES.] 
  1.10     Subdivision 1.  [GENERAL PROHIBITION.] Unless specifically 
  1.11  permitted in the provision authorizing an aid or a levy, 
  1.12  cooperative units of government defined in section 123.35, 
  1.13  subdivision 19b, paragraph (d), are prohibited from making a 
  1.14  property tax levy or qualifying for or receiving any form of 
  1.15  state aid except that a cooperative unit may apply for and 
  1.16  receive a grant on behalf of its members as provided in 
  1.17  subdivisions 2 and 3. 
  1.18     Subd. 2.  [GRANTS.] A cooperative unit may apply for and 
  1.19  receive a grant on behalf of its members. 
  1.20     Subd. 3.  [ALLOCATION FROM MEMBERS.] By July 1 of each 
  1.21  year, a school district may, by board resolution, allocate to 
  1.22  cooperative units of which it is a member an amount not to 
  1.23  exceed the lesser of (a) the district's general education aid 
  1.24  for the fiscal year beginning July 1, according to sections 
  1.25  124A.036, subdivision 5, and 124A.23, subdivision 4, or (b) an 
  2.1   amount equal to $67 times the fund balance pupil units for the 
  2.2   fiscal year beginning July 1.  By July 15 of each year, the 
  2.3   school district must report to the commissioner the amount 
  2.4   allocated.  The amount allocated to cooperative units shall be 
  2.5   paid to cooperative units according to section 124.195, 
  2.6   subdivision 15.  Amounts allocated to cooperative units under 
  2.7   this subdivision shall be recognized and reported as revenues 
  2.8   and expenditures on the school district's books of account under 
  2.9   sections 121.904 and 121.906. 
  2.10     Sec. 2.  Minnesota Statutes 1996, section 124.195, is 
  2.11  amended by adding a subdivision to read: 
  2.12     Subd. 15.  [PAYMENTS TO COOPERATIVES.] Notwithstanding 
  2.13  subdivision 3, 90 percent of the amounts allocated to 
  2.14  cooperative units under section 124.193, subdivision 3, shall be 
  2.15  paid in equal installments on August 30, December 30, and March 
  2.16  30, with a ten percent final adjustment payment on October 30 of 
  2.17  the next fiscal year. 
  2.18     Sec. 3.  [EFFECTIVE DATE.] 
  2.19     Sections 1 and 2 are effective July 1, 1997, for revenue 
  2.20  for fiscal years 1998 and later.