Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF489 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to education finance; modifying special education formulas; authorizing
3	3	1.3 a levy for certain special access costs at cooperative units; authorizing a levy for
4	4	1.4 special education facility costs; limiting special education tuition billing;
5	5	1.5 appropriating money; amending Minnesota Statutes 2022, sections 124E.21,
6	6	1.6 subdivision 1; 125A.21, subdivisions 1, 2; 125A.76, subdivision 2e; 125A.79, by
7	7	1.7 adding a subdivision; 126C.40, by adding a subdivision; 127A.47, subdivision 7.
8	8	1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
9	9	1.9 Section 1. Minnesota Statutes 2022, section 124E.21, subdivision 1, is amended to read:
10	10	1.10 Subdivision 1.Special education aid.(a) A charter school is eligible for special education
11	11	1.11aid if the charter school files an annual plan with its authorizer describing the charter school's
12	12	1.12procedure for implementing third party billing under section 125A.21. Except as provided
13	13	1.13in section 124E.23, special education aid, excluding cross subsidy reduction aid under
14	14	1.14section 125A.76, subdivision 2e, must be paid to a charter school according to section
15	15	1.15125A.76, as though it were a school district.
16	16	1.16 (b) For fiscal year 2020 and later, The special education aid paid to the charter school
17	17	1.17shall be adjusted as follows:
18	18	1.18 (1) if the charter school does not receive general education revenue on behalf of the
19	19	1.19student according to section 124E.20, the aid shall be adjusted as provided in section
20	20	1.20125A.11; or
21	21	1.21 (2) if the charter school receives general education revenue on behalf of the student
22	22	1.22according to section 124E.20, the aid shall be adjusted as provided in section 127A.47,
23	23	1.23subdivision 7, paragraphs (b) to (e), and if the tuition adjustment is computed under section
24	24	1.24127A.47, subdivision 7, paragraph (c), it shall also receive an adjustment equal to five
25	25	1Section 1.
26	26	23-01918 as introduced01/10/23 REVISOR CM/KA
27	27	SENATE
28	28	STATE OF MINNESOTA
29	29	S.F. No. 489NINETY-THIRD SESSION
30	30	(SENATE AUTHORS: GRUENHAGEN)
31	31	OFFICIAL STATUSD-PGDATE
32	32	Introduction and first reading01/19/2023
33	33	Referred to Education Finance 2.1percent for fiscal year 2020 or ten percent for fiscal year 2021 and later of the unreimbursed
34	34	2.2cost of providing special education and services for the student and the amount in paragraph
35	35	2.3(c).
36	36	2.4 (c) A charter school must receive special education tuition adjustment aid equal to the
37	37	2.5difference between the charter school's unreimbursed costs without a rate cap and the
38	38	2.6district's unreimbursed costs with the rate cap, times the adjustment factor for that year. For
39	39	2.7fiscal year 2024, the adjustment factor equals 75 percent. For fiscal year 2025, the adjustment
40	40	2.8factor equals 50 percent. For fiscal year 2026 and later, the adjustment factor equals 25
41	41	2.9percent.
42	42	2.10 EFFECTIVE DATE.This section is effective July 1, 2023.
43	43	2.11 Sec. 2. Minnesota Statutes 2022, section 125A.21, subdivision 1, is amended to read:
44	44	2.12 Subdivision 1.Obligation to pay.(a) Nothing in sections 125A.03 to 125A.24 and
45	45	2.13125A.65 relieves an insurer or similar third party from an otherwise valid obligation to pay,
46	46	2.14or changes the validity of an obligation to pay, for services rendered to a child with a
47	47	2.15disability, and the child's family.
48	48	2.16 (b) For purposes of this section, "school district" and "district" mean a school district,
49	49	2.17charter school, or cooperative unit defined under section 123A.24, subdivision 2, providing
50	50	2.18direct special education services to students.
51	51	2.19 (c) A school district shall pay the nonfederal share of medical assistance services provided
52	52	2.20according to section 256B.0625, subdivision 26. Eligible expenditures must not be made
53	53	2.21from federal funds or funds used to match other federal funds. Any federal disallowances
54	54	2.22are the responsibility of the school district. A school district may pay or reimburse
55	55	2.23co-payments, coinsurance, deductibles, and other enrollee cost-sharing amounts, on behalf
56	56	2.24of the student or family, in connection with health and related services provided under an
57	57	2.25individual educational plan or individualized family service plan.
58	58	2.26 Sec. 3. Minnesota Statutes 2022, section 125A.21, subdivision 2, is amended to read:
59	59	2.27 Subd. 2.Third-party reimbursement.(a) Beginning July 1, 2000, Districts shall seek
60	60	2.28reimbursement from insurers and similar third parties for the cost of services provided by
61	61	2.29the district whenever the services provided by the district are otherwise covered by the
62	62	2.30child's health coverage. Districts shall request, but may not require, the child's family to
63	63	2.31provide information about the child's health coverage when a child with a disability begins
64	64	2Sec. 3.
65	65	23-01918 as introduced01/10/23 REVISOR CM/KA 3.1to receive services from the district of a type that may be reimbursable, and shall request,
66	66	3.2but may not require, updated information after that as needed.
67	67	3.3 (b) For children enrolled in medical assistance under chapter 256B or MinnesotaCare
68	68	3.4under chapter 256L who have no other health coverage, a district shall provide an initial
69	69	3.5and annual written notice to the enrolled child's parent or legal representative of its intent
70	70	3.6to seek reimbursement from medical assistance or MinnesotaCare for:
71	71	3.7 (1) the evaluations required as part of the individualized education program process or
72	72	3.8individualized family service plan process; and
73	73	3.9 (2) health-related services provided by the district according to the individualized
74	74	3.10education program or individualized family service plan.
75	75	3.11The initial notice must give the child's parent or legal representative the right to request a
76	76	3.12copy of the child's education records on the health-related services that the district provided
77	77	3.13to the child and disclosed to a third-party payer.
78	78	3.14 (c) The district shall give the parent or legal representative annual written notice of:
79	79	3.15 (1) the district's intent to seek reimbursement from medical assistance or MinnesotaCare
80	80	3.16for evaluations required as part of the individualized education program process or
81	81	3.17individualized family service plan process, and for health-related services provided by the
82	82	3.18district according to the individualized education program or individualized family service
83	83	3.19plan;
84	84	3.20 (2) the right of the parent or legal representative to request a copy of all records
85	85	3.21concerning individualized education program or individualized family service plan
86	86	3.22health-related services disclosed by the district to any third party; and
87	87	3.23 (3) the right of the parent or legal representative to withdraw consent for disclosure of
88	88	3.24a child's records at any time without consequence.
89	89	3.25The written notice shall be provided as part of the written notice required by Code of Federal
90	90	3.26Regulations, title 34, section 300.504 or 303.520. The district must ensure that the parent
91	91	3.27of a child with a disability is given notice, in understandable language, of federal and state
92	92	3.28procedural safeguards available to the parent under this paragraph and paragraph (b).
93	93	3.29 (d) In order to access the private health care coverage of a child who is covered by private
94	94	3.30health care coverage in whole or in part, a district must:
95	95	3.31 (1) obtain annual written informed consent from the parent or legal representative, in
96	96	3.32compliance with subdivision 5; and
97	97	3Sec. 3.
98	98	23-01918 as introduced01/10/23 REVISOR CM/KA 4.1 (2) inform the parent or legal representative that a refusal to permit the district or state
99	99	4.2Medicaid agency to access their private health care coverage does not relieve the district of
100	100	4.3its responsibility to provide all services necessary to provide free and appropriate public
101	101	4.4education at no cost to the parent or legal representative.
102	102	4.5 (e) If the commissioner of human services obtains federal approval to exempt covered
103	103	4.6individualized education program or individualized family service plan health-related
104	104	4.7services from the requirement that private health care coverage refuse payment before
105	105	4.8medical assistance may be billed, paragraphs (b), (c), and (d) shall also apply to students
106	106	4.9with a combination of private health care coverage and health care coverage through medical
107	107	4.10assistance or MinnesotaCare.
108	108	4.11 (f) In the event that Congress or any federal agency or the Minnesota legislature or any
109	109	4.12state agency establishes lifetime limits, limits for any health care services, cost-sharing
110	110	4.13provisions, or otherwise provides that individualized education program or individualized
111	111	4.14family service plan health-related services impact benefits for persons enrolled in medical
112	112	4.15assistance or MinnesotaCare, the amendments to this subdivision adopted in 2002 are
113	113	4.16repealed on the effective date of any federal or state law or regulation that imposes the
114	114	4.17limits. In that event, districts must obtain informed consent consistent with this subdivision
115	115	4.18as it existed prior to the 2002 amendments and subdivision 5, before seeking reimbursement
116	116	4.19for children enrolled in medical assistance under chapter 256B or MinnesotaCare under
117	117	4.20chapter 256L who have no other health care coverage.
118	118	4.21 Sec. 4. Minnesota Statutes 2022, section 125A.76, subdivision 2e, is amended to read:
119	119	4.22 Subd. 2e.Cross subsidy reduction aid.(a) A school district's annual cross subsidy
120	120	4.23reduction aid equals the school district's initial special education cross subsidy for the
121	121	4.24previous fiscal year times the cross subsidy aid factor for that fiscal year.
122	122	4.25 (b) The cross subsidy aid factor equals 2.6 percent for fiscal year 2020 and, 6.43 percent
123	123	4.26for fiscal year 2021 and, 9.33 percent for fiscal year 2024, 12.11 percent for fiscal year
124	124	4.272025, and increases by three percentage points per year for fiscal year 2026 and later. The
125	125	4.28cross subsidy aid factor must not exceed 30 percent.
126	126	4.29 Sec. 5. Minnesota Statutes 2022, section 125A.79, is amended by adding a subdivision to
127	127	4.30read:
128	128	4.31 Subd. 9.Access fee levy.A school district may annually levy for the cost of any access
129	129	4.32fees charged by an intermediate school district or other school cooperative unit under section
130	130	4.33123A.24, subdivision 2, providing direct special education services to students.
131	131	4Sec. 5.
132	132	23-01918 as introduced01/10/23 REVISOR CM/KA 5.1 EFFECTIVE DATE.This section is effective for taxes payable in 2024 and later.
133	133	5.2 Sec. 6. Minnesota Statutes 2022, section 126C.40, is amended by adding a subdivision to
134	134	5.3read:
135	135	5.4 Subd. 3a.Lease and other facility costs for cooperative units serving special education
136	136	5.5pupils.(a) For purposes of this subdivision, "cooperative unit" means a cooperative under
137	137	5.6section 123A.24, subdivision 2, and "facility costs" means the annual costs of a lease or
138	138	5.7bond payments for a facility used primarily for special education students.
139	139	5.8 (b) The board of a cooperative unit may adopt a resolution authorizing the cooperative
140	140	5.9to assess facilities costs to its member districts.
141	141	5.10 (c) A district that is a member of a cooperative unit providing special education services
142	142	5.11may levy for its proportional share of facility costs assessed by the cooperative unit of which
143	143	5.12it is a member.
144	144	5.13 EFFECTIVE DATE.This section is effective for taxes payable in 2024 and later.
145	145	5.14 Sec. 7. Minnesota Statutes 2022, section 127A.47, subdivision 7, is amended to read:
146	146	5.15 Subd. 7.Alternative attendance programs.(a) The general education aid and special
147	147	5.16education aid for districts must be adjusted for each pupil attending a nonresident district
148	148	5.17under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments
149	149	5.18must be made according to this subdivision.
150	150	5.19 (b) For purposes of this subdivision, the "unreimbursed cost of providing special
151	151	5.20education and services" means the difference between: (1) the actual cost of providing
152	152	5.21special instruction and services, including special transportation and unreimbursed building
153	153	5.22lease and debt service costs for facilities used primarily for special education, for a pupil
154	154	5.23with a disability, as defined in section 125A.02, or a pupil, as defined in section 125A.51,
155	155	5.24who is enrolled in a program listed in this subdivision, including special transportation and
156	156	5.25unreimbursed building lease and debt service costs for facilities used primarily for special
157	157	5.26education, minus (2) if the pupil receives special instruction and services outside the regular
158	158	5.27classroom for more than 60 percent of the school day, the amount of general education
159	159	5.28revenue, if the pupil receives special instruction and services outside the regular classroom
160	160	5.29for more than 60 percent of the school day, excluding local optional revenue, plus local
161	161	5.30optional aid and referendum equalization aid as defined in section 125A.11, subdivision 1,
162	162	5.31paragraph (d), attributable to that pupil for the portion of time the pupil receives special
163	163	5.32instruction and services outside of the regular classroom, excluding portions attributable to
164	164	5Sec. 7.
165	165	23-01918 as introduced01/10/23 REVISOR CM/KA 6.1district and school administration, district support services, operations and maintenance,
166	166	6.2capital expenditures, and pupil transportation, minus (3) special education aid under section
167	167	6.3125A.76, excluding cross subsidy reduction aid under section 125A.76, subdivision 2e,
168	168	6.4attributable to that pupil, that is received by the district providing special instruction and
169	169	6.5services. For purposes of this paragraph, general education revenue and referendum
170	170	6.6equalization aid attributable to a pupil must be calculated using the serving district's average
171	171	6.7general education revenue and referendum equalization aid per adjusted pupil unit.
172	172	6.8 (c) For fiscal year 2020, special education aid paid to a resident district must be reduced
173	173	6.9by an amount equal to 85 percent of the unreimbursed cost of providing special education
174	174	6.10and services. For fiscal year 2021 and later, Special education aid paid to a resident district
175	175	6.11must be reduced by an amount equal to 80 percent of the unreimbursed cost of providing
176	176	6.12special education and services.
177	177	6.13 (d) Notwithstanding paragraph (c), special education aid paid to a resident district must
178	178	6.14be reduced by an amount equal to 100 percent of the unreimbursed cost of providing special
179	179	6.15education and services provided to students at an intermediate district, cooperative, or charter
180	180	6.16school where the percent of students eligible for special education services is at least 70
181	181	6.17percent of the charter school's total enrollment.
182	182	6.18 (e) Notwithstanding paragraph (c), special education aid paid to a resident district must
183	183	6.19be reduced under paragraph (d) for students at a charter school receiving special education
184	184	6.20aid under section 124E.21, subdivision 3, calculated as if the charter school received special
185	185	6.21education aid under section 124E.21, subdivision 1.
186	186	6.22 (f) Special education aid paid to the district or cooperative providing special instruction
187	187	6.23and services for the pupil, or to the fiscal agent district for a cooperative, must be increased
188	188	6.24by the amount of the reduction in the aid paid to the resident district under paragraphs (c)
189	189	6.25and (d). If the resident district's special education aid is insufficient to make the full
190	190	6.26adjustment under paragraphs (c), (d), and (e), the remaining adjustment shall be made to
191	191	6.27other state aids due to the district.
192	192	6.28 (g) Notwithstanding paragraph (a), general education aid paid to the resident district of
193	193	6.29a nonspecial education student for whom an eligible special education charter school receives
194	194	6.30general education aid under section 124E.20, subdivision 1, paragraph (c), must be reduced
195	195	6.31by an amount equal to the difference between the general education aid attributable to the
196	196	6.32student under section 124E.20, subdivision 1, paragraph (c), and the general education aid
197	197	6.33that the student would have generated for the charter school under section 124E.20,
198	198	6.34subdivision 1, paragraph (a). For purposes of this paragraph, "nonspecial education student"
199	199	6Sec. 7.
200	200	23-01918 as introduced01/10/23 REVISOR CM/KA 7.1means a student who does not meet the definition of pupil with a disability as defined in
201	201	7.2section 125A.02 or the definition of a pupil in section 125A.51.
202	202	7.3 (h) An area learning center operated by a service cooperative, intermediate district,
203	203	7.4education district, or a joint powers cooperative may elect through the action of the
204	204	7.5constituent boards to charge the resident district tuition for pupils rather than to have the
205	205	7.6general education revenue paid to a fiscal agent school district. Except as provided in
206	206	7.7paragraph (f), the district of residence must pay tuition equal to at least 90 and no more than
207	207	7.8100 percent of the district average general education revenue per pupil unit minus an amount
208	208	7.9equal to the product of the formula allowance according to section 126C.10, subdivision 2,
209	209	7.10times .0466, calculated without compensatory revenue, local optional revenue, and
210	210	7.11transportation sparsity revenue, times the number of pupil units for pupils attending the area
211	211	7.12learning center.
212	212	7.13 (i) Notwithstanding paragraph (b), unreimbursed tuition reimbursement amounts for a
213	213	7.14charter school, not including a charter school for which the tuition adjustment is calculated
214	214	7.15under paragraph (d) or (e), must be computed according to this paragraph. For purposes of
215	215	7.16this paragraph:
216	216	7.17 (1) "regular school year statewide district cap rate" means the unreimbursed regular
217	217	7.18school year cost per service hour, calculated statewide for all districts and averaged across
218	218	7.19the current year;
219	219	7.20 (2) "extended school year statewide district cap rate" means the unreimbursed extended
220	220	7.21school year cost per service hour, calculated statewide for all districts and averaged across
221	221	7.22the current year;
222	222	7.23 (3) "special education transportation statewide district cap rate" means the unreimbursed
223	223	7.24special education transportation cost per membership hour, calculated statewide for all
224	224	7.25districts and averaged across the current year;
225	225	7.26 (4) "special education one-to-one paraprofessional statewide district cap rate" means
226	226	7.27the unreimbursed special education one-to-one paraprofessional cost per hour, calculated
227	227	7.28statewide for all districts and averaged across the current year; and
228	228	7.29 (5) "unreimbursed cost of providing special education and services" means the lesser of
229	229	7.30(i) the amount calculated under paragraph (b), or (ii) the "regular school year statewide
230	230	7.31district cap rate" multiplied by the regular school year service hours, plus the "extended
231	231	7.32school year statewide district cap rate" multiplied by the extended school year service hours,
232	232	7.33plus the "special education transportation statewide district cap rate" multiplied by the
233	233	7Sec. 7.
234	234	23-01918 as introduced01/10/23 REVISOR CM/KA 8.1membership hours, plus the "special education one-to-one paraprofessional statewide district
235	235	8.2cap rate" times instructional hours.
236	236	8.3 (j) For purposes of paragraph (i), for each capped rate, the unreimbursed cap rate must
237	237	8.4not exceed 200 percent of the capped rate for fiscal year 2025, 175 percent of the capped
238	238	8.5rate for fiscal year 2026, 150 percent of the capped rate for fiscal year 2027, and 125 percent
239	239	8.6of the capped rate for fiscal year 2028 and later.
240	240	8.7 (k) Notwithstanding paragraph (b), the department may disallow tuition expenses for a
241	241	8.8charter school if the department determines that the charter school failed to pursue third-party
242	242	8.9billing for qualifying special education services.
243	243	8.10 EFFECTIVE DATE.This section is effective for fiscal year 2025 and later.
244	244	8.11 Sec. 8. APPROPRIATION; SPECIAL EDUCATION AID.
245	245	8.12 Subdivision 1.Department of Education.The sums indicated in this section are
246	246	8.13appropriated from the general fund to the Department of Education in the fiscal years
247	247	8.14designated.
248	248	8.15 Subd. 2.Special education aid.For special education aid under Minnesota Statutes,
249	249	8.16section 125A.76:
250	250	2024............8.17 $
251	251	2025............8.18 $
252	252	8Sec. 8.
253	253	23-01918 as introduced01/10/23 REVISOR CM/KA