1.1 	A bill for an act
1.2 	relating to education finance; modifying certain education finance provisions; 
1.3 	amending Minnesota Statutes 2011 Supplement, sections 120B.07; 120B.08; 
1.4 	120B.09; 120B.12, subdivision 2; 124D.98, subdivisions 2, 3; 126C.126.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2011 Supplement, section 120B.07, is amended to read:
1.7 	120B.07 EARLY GRADUATION.
1.8 	(a) Notwithstanding any law to the contrary, any secondary school student who has 
1.9 	completed all required courses or standards may, with the approval of the student, the 
1.10 	student's parent or guardian, and local school officials, graduate before the completion 
1.11 	of the school year.
1.12 	(b) General education revenue attributable to the student must be paid as though 
1.13 	the student was in attendance for the entire year unless the student participates in the 
1.14 	early graduation achievement scholarship program under section 120B.08 or the early 
1.15 	graduation military service award program under section 120B.09.

1.16 	EFFECTIVE DATE. This section is effective for fiscal year 2012 and later.

1.17 	Sec. 2. Minnesota Statutes 2011 Supplement, section 120B.08, is amended to read:
1.18 	120B.08 EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP 
1.19 	PROGRAM.
1.20 		Subdivision 1.Participation. A student who qualifies for early graduation under 
1.21 	section 120B.07, who meets the criteria in subdivision 1a and who has not participated in 
2.1 	the early graduation military service award program under section 120B.09, is eligible to 
2.2 	participate in the early graduation achievement scholarship program.
2.3 		Subd. la.Eligible student. For purposes of this section, an eligible student is a 
2.4 	secondary student enrolled in a Minnesota public school who, at the time of graduation, 
2.5 	generated Minnesota general education revenue and who graduates prior to the end of the 
2.6 	fourth school year after first enrolling in ninth grade.
2.7 		Subd. 2.Scholarship amounts. A student who participates in the early graduation 
2.8 	achievement scholarship program is eligible for a scholarship of $2,500 if the student 
2.9 	qualifies for graduation graduates one semester or two trimesters early, $5,000 if the 
2.10 	student qualifies for graduation graduates two semesters or three or four trimesters early, 
2.11 	or $7,500 if the student qualifies for graduation graduates three or more semesters or five 
2.12 	or more trimesters early. Participation in the optional summer term, extended day sessions, 
2.13 	and intersessions of a state-approved learning year program under section 124D.128 are 
2.14 	considered a quarter for purposes of computing scholarship amounts.
2.15 		Subd. 3.Scholarship uses. An early graduation achievement scholarship may 
2.16 	be used at any accredited Minnesota institution of higher education accredited by an 
2.17 	accrediting agency recognized by the United States Department of Education.
2.18 		Subd. 4.Application. A qualifying student may apply to the commissioner of 
2.19 	education for an early graduation achievement scholarship. The application must be in the 
2.20 	form and manner specified by the commissioner and must be received at the department 
2.21 	within one calendar year of the date of graduation. Upon verification of the qualifying 
2.22 	student's course completion necessary for graduation, the department must issue the 
2.23 	student a certificate showing the student's scholarship amount.
2.24 		Subd. 5.Enrollment verification. A student who qualifies under this section and 
2.25 	enrolls in an accredited higher education institution located in Minnesota must submit 
2.26 	a form to the commissioner verifying the student's enrollment in the Minnesota higher 
2.27 	education institution and the tuition charges for that semester. Within 15 45 days of receipt 
2.28 	of a student's enrollment and tuition verification form, the commissioner must issue a 
2.29 	scholarship check to the student Minnesota higher education institution in the lesser of the 
2.30 	tuition amount for that semester or the maximum amount of the student's early graduation 
2.31 	achievement scholarship. A student may continue to submit enrollment verification forms 
2.32 	to the commissioner until the student has used the full amount of the student's graduation 
2.33 	achievement scholarship or four years from the date of the student's graduation, whichever 
2.34 	occurs first. The scholarship cannot be renewed.
3.1 		Subd. 6.General education money transferred. The commissioner must transfer 
3.2 	the amounts necessary to fund the early graduation achievement scholarships from the 
3.3 	general education aid appropriation for that year.

3.4 	EFFECTIVE DATE. This section is effective for fiscal year 2012 and later.

3.5 	Sec. 3. Minnesota Statutes 2011 Supplement, section 120B.09, is amended to read:
3.6 	120B.09 EARLY GRADUATION MILITARY SERVICE AWARD PROGRAM.
3.7 		Subdivision 1.Eligibility. For purposes of this section, "eligible person" means a 
3.8 	secondary student enrolled in any Minnesota public school who, at the time of graduation, 
3.9 	generated Minnesota general education revenue, who qualifies for early graduation under 
3.10 	section 120B.07, who graduated prior to the end of the fourth school year after first 
3.11 	enrolling in ninth grade, who has not participated in the early graduation achievement 
3.12 	scholarship program under section 120B.08, and who, before the end of the calendar 
3.13 	year of the student's graduation, enters into active service in either the active or reserve 
3.14 	component of the United States armed forces and deploys for 60 days or longer to a 
3.15 	military base or installation outside Minnesota for the purpose of attending basic military 
3.16 	training or military school and, if required by the military, performing other military duty. 
3.17 	The active service may be in accordance with United States Code, title 10 or title 32.
3.18 		Subd. 2.Application. An eligible person may apply to the commissioner of 
3.19 	education for an early graduation military service bonus. The application must be in the 
3.20 	form and manner specified by the commissioner and must be received at the department 
3.21 	within one calendar year of the date of graduation.
3.22 		Subd. 3.Verification and award. The request for payment must be received at the 
3.23 	department by the end of the fiscal year following the date of the student's graduation. 
3.24 	Upon verification of the qualifying student's course completion necessary for graduation 
3.25 	and eligibility for the military service bonus, the commissioner must issue payment to that 
3.26 	person. Payment amounts must be determined according to section 120B.08, subdivision 
3.27 	2. Once the original amount of the award has been paid, it cannot be renewed.

3.28 	EFFECTIVE DATE. This section is effective for fiscal year 2012 and later.

3.29 	Sec. 4. Minnesota Statutes 2011 Supplement, section 120B.12, subdivision 2, is 
3.30 	amended to read:
3.31 		Subd. 2.Identification; report. For the 2011-2012 school year and later, each 
3.32 	school district shall identify before the end of kindergarten, grade 1, and grade 2 students 
3.33 	who are not reading at grade level before the end of the current school year. Reading 
4.1 	assessments must identify and evaluate students' areas of academic need related to 
4.2 	literacy. The district must use a locally adopted assessment and annually report summary 
4.3 	assessment results to the commissioner by June July 1.

4.4 	Sec. 5. Minnesota Statutes 2011 Supplement, section 124D.98, subdivision 2, is 
4.5 	amended to read:
4.6 		Subd. 2.Proficiency aid. (a) In fiscal year 2013 and later, the proficiency aid for 
4.7 	each school district is equal to the product of the school's school district's proficiency 
4.8 	allowance times the number of pupils enrolled in kindergarten through grade four at the 
4.9 	school district on October 1 of the previous fiscal year. 
4.10 	(b) A school's school district's proficiency allowance is equal to the percentage of 
4.11 	students in each building the district that meet or exceed proficiency on the third grade 
4.12 	reading Minnesota Comprehensive Assessment, averaged across the previous three test 
4.13 	administrations, times $85 $101.30.

4.14 	Sec. 6. Minnesota Statutes 2011 Supplement, section 124D.98, subdivision 3, is 
4.15 	amended to read:
4.16 		Subd. 3.Growth aid. In fiscal year 2013 and later, the growth aid for each school 
4.17 	district is equal to the product of the school's school district's growth allowance times the 
4.18 	number of pupils enrolled in kindergarten through grade four at the school district on 
4.19 	October 1 of the previous fiscal year. A school's school district's growth allowance is equal 
4.20 	to the percentage of students at that school district making medium or high growth, under 
4.21 	section 120B.299, on the fourth grade reading Minnesota Comprehensive Assessment, 
4.22 	averaged across the previous three test administrations, times $85 $101.30.

4.23 	Sec. 7. Minnesota Statutes 2011 Supplement, section 126C.126, is amended to read:
4.24 	126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR 
4.25 	ALL-DAY KINDERGARTEN AND PREKINDERGARTEN.
4.26 	(a) In order to provide additional revenue for an optional all-day kindergarten 
4.27 	program, a district may reallocate general education revenue attributable to 12th grade 
4.28 	students who have graduated early under section 120B.07 and who do not participate in 
4.29 	the early graduation achievement scholarship program under section 120B.08 or the early 
4.30 	graduation military service award program under section 120B.09.
4.31 	(b) A school district may spend general education revenue on extended time 
4.32 	kindergarten and prekindergarten programs.