Opportunity Scholarship Program establishment and appropriation

A bill for an act

relating to education finance; creating the opportunity scholarship program;

appropriating money; amending Minnesota Statutes 2024, section 126C.05,

subdivision 8; proposing coding for new law in Minnesota Statutes, chapter 126C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 126C.05, subdivision 8, is amended to read:

Subd. 8.

Average daily membership.

(a) Membership for pupils in grades kindergarten

through 12 and for prekindergarten pupils with disabilities shall mean the number of pupils

on the current roll of the school, counted from the date of entry until withdrawal.
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For fiscal

year 2027 and later, membership includes pupils in kindergarten through grade 12

participating in the opportunity scholarship program under section 126C.105.
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The date of

withdrawal shall mean the day the pupil permanently leaves the school or the date it is

officially known that the pupil has left or has been legally excused. However, a pupil,

regardless of age, who has been absent from school for 15 consecutive school days during

the regular school year or for five consecutive school days during summer school or

intersession classes of flexible school year programs without receiving instruction in the

home or hospital shall be dropped from the roll and classified as withdrawn. Nothing in this

section shall be construed as waiving the compulsory attendance provisions cited in section

120A.22
. Average daily membership equals the sum for all pupils of the number of days

of the school year each pupil is enrolled in the district's schools divided by the number of

days the schools are in session or are providing e-learning days due to inclement weather.

Days of summer school or intersession classes of flexible school year programs are only

included in the computation of membership for pupils with a disability not appropriately

served primarily in the regular classroom. A student must not be counted as more than 1.2

pupils in average daily membership under this section and section
126C.10, subdivision 2a
,

paragraph (c). When the initial total average daily membership exceeds 1.2 for a pupil

enrolled in more than one school district during the fiscal year, each district's average daily

membership must be reduced proportionately.

(b) A student must not be counted as more than one pupil in average daily membership

except for purposes of section
126C.10, subdivision 2a
.

Sec. 2.

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[126C.105] OPPORTUNITY SCHOLARSHIP PROGRAM.

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Subdivision 1.

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Program established.

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The Minnesota opportunity scholarship program

is established.

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Subd. 2.

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Purpose.

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The purpose of the program is to enhance academic success for all

students.

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Subd. 3.

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Qualifying student.

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(a) A student enrolled in kindergarten through grade 12

who resides in Special School District No. 1, Minneapolis, or Independent School District

No. 625, St. Paul, is eligible to participate in the opportunity scholarship program. The

student must enroll in the resident school district and inform the school district that the

student intends to participate in the opportunity scholarship program.

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(b) A student receiving an opportunity scholarship may enroll in any qualifying

opportunity scholarship school.

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Subd. 4.

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Qualifying opportunity scholarship school.

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(a) For purposes of this section,

"nonpublic school" means a school located in Minnesota, excluding a public school as

defined in section 120A.22, subdivision 4, providing instruction in courses in compliance

with sections 120A.22 and 120A.24.

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(b) A qualifying nonpublic school must allow an opportunity scholarship student's parent

to pay for tuition on a monthly basis.

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(c) A qualifying nonpublic school must continue to enroll an opportunity scholarship

student for the period of time for which tuition has been paid for that student.

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Subd. 5.

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Eligible expenses.

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A qualifying student's eligible expenses under this section

include tuition from a qualifying opportunity scholarship school and eligible expenses under

section 290.0674, subdivision 1, except that the eligible expenses for personal computers

are not capped at $200 per family.

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Subd. 6.

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School district program administration.

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(a) A school district must annually

notify the families of the students enrolled in the school district of their option to participate

in the opportunity scholarship program.

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(b) The school district must continue to count a student participating in the opportunity

scholarship program as an enrolled pupil under section 126C.05 and continue to receive

revenue for that student.

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(c) On July 1 of each year, the Department of Education must calculate the average

general education revenue per pupil unit for that school year, post that amount on the

department's website, and notify each school district of the amount. By July 15 of each year,

each school district must notify the participating students' families of the per pupil revenue

amount for that year.

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(d) The amount calculated under paragraph (c) is the maximum amount that the school

district must transfer to the student's family for that school year.

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(e) The school district must establish a procedure to allow a student's family to submit

tuition receipts from a qualifying opportunity scholarship school and receipts for other

eligible expenditures for reimbursement. The receipts for tuition may be presented on a

monthly basis. The school district must pay the student's family the documented amounts

within 30 days of receiving the receipt for tuition expenses from the student's family.

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(f) Notwithstanding any law to the contrary, a school district is not required to provide

regular education services to any opportunity scholarship student for the period of time that

the student is receiving an opportunity scholarship.

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(g) At the conclusion of each school year, the school district must contribute the remaining

general education funds attributable to that student, if any, to the student's 529 account

according to the provisions of this subdivision.

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(h) The school district may retain any other funds attributable to a student participating

in the opportunity scholarship program.

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Subd. 7.

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529 contributions.

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(a) At the conclusion of each school year, at the request of

the student's family, the school district must contribute the remaining general education

funds attributable to that student, if any, to the student's family for deposit into a qualified

tuition plan that meets the requirements of section 529 of the Internal Revenue Code and

for which the student is a beneficiary.

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(b) Within 60 days of receiving funds under this subdivision, the student's family must

submit written documentation to the school district confirming the funds were contributed

to a qualified tuition plan. A family that does not submit documentation under this paragraph

must repay to the school district the amount received, plus the amount of interest accrued

at the rate established under section 270C.40, subdivision 5, within 90 days of receiving

the funds.

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(c) For a student whose family does not request a funds transfer under paragraph (a)

within 90 days of the conclusion of the school year, the school district must:

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(1) in consultation with the commissioner of higher education, establish a custodial

account for the student as part of the Minnesota college savings plan under chapter 136G;

and

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(2) deposit any remaining general education funds attributable to the student into a

custodial account established for the student under clause (1).

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Sec. 3.
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APPROPRIATION; ADDITIONAL STATE AID.
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Subdivision 1.

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Department of Education.

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The sum indicated in this section is

appropriated from the general fund to the Department of Education in the fiscal year

designated.

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Subd. 2.

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General education aid.

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(a) For additional general education aid and other

school aids:

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$

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.......

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.....

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2027

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(b) The appropriation in this section is added to the other appropriations for the programs

affected by Minnesota Statutes, section 126C.05, subdivision 8.

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