Amendment sch1143a-3

sch1143a-3 sch1143a-3

1.1Senator Rarick moved to amend H.F. No. 1143 as follows (...):
1.2Delete everything after the enacting clause and insert:

1.3"ARTICLE 1
1.4GENERAL EDUCATION

1.5    Section 1. Minnesota Statutes 2024, section 123A.485, subdivision 2, is amended to read:
1.6    Subd. 2. Aid. (a) Consolidation transition aid is equal to $200 $424 times the number
1.7of resident pupil units in the newly created district in the year of consolidation and $100
1.8$212 times the number of resident pupil units in the first year following the year of
1.9consolidation. The number of pupil units used to calculate aid in either year shall not exceed
1.101,000 for districts consolidating July 1, 1994, and 1,500 for districts consolidating July 1,
1.111995, and thereafter.
1.12(b) If the total appropriation for consolidation transition aid for any fiscal year, plus any
1.13amount transferred under section 127A.41, subdivision 8, is insufficient to pay all districts
1.14the full amount of aid earned, the department must first pay the districts in the first year
1.15following the year of consolidation the full amount of aid earned and distribute any remaining
1.16funds to the newly created districts in the first year of consolidation.

1.17    Sec. 2. Minnesota Statutes 2024, section 124D.995, subdivision 6, is amended to read:
1.18    Subd. 6. Expiration. This section expires on June 30, 2027 2028, and any balance
1.19remaining in the account is canceled to the general fund.

1.20    Sec. 3. Minnesota Statutes 2024, section 124E.20, subdivision 1, is amended to read:
1.21    Subdivision 1. Revenue calculation. (a) General education revenue must be paid to a
1.22charter school as though it were a district. The general education revenue for each adjusted
1.23pupil unit is the state average general education revenue per pupil unit, plus the referendum
1.24equalization aid allowance and the first and second tier local optional basic supplemental
1.25aid allowance allowances in the pupil's district of residence, minus an amount equal to the
1.26product of the formula allowance according to section 126C.10, subdivision 2, times .0466,
1.27calculated without declining enrollment revenue, local optional basic supplemental revenue,
1.28basic skills revenue, extended time revenue, pension adjustment revenue, transition revenue,
1.29and transportation sparsity revenue, plus declining enrollment revenue, basic skills revenue,
1.30pension adjustment revenue, and transition revenue as though the school were a school
1.31district.
2.1(b) For a charter school operating an extended day, extended week, or summer program,
2.2the general education revenue in paragraph (a) is increased by an amount equal to 25 percent
2.3of the statewide average extended time revenue per adjusted pupil unit.
2.4(c) Notwithstanding paragraph (a), the general education revenue for an eligible special
2.5education charter school as defined in section 124E.21, subdivision 2, equals the sum of
2.6the amount determined under paragraph (a) and the school's unreimbursed cost as defined
2.7in section 124E.21, subdivision 2, for educating students not eligible for special education
2.8services.
2.9EFFECTIVE DATE.This section is effective for revenue for fiscal year 2026 and later.

2.10    Sec. 4. Minnesota Statutes 2024, section 126C.10, subdivision 1, is amended to read:
2.11    Subdivision 1. General education revenue. The general education revenue for each
2.12district equals the sum of the district's basic revenue, extended time revenue, gifted and
2.13talented revenue, declining enrollment revenue, local optional basic supplemental revenue,
2.14small schools revenue, basic skills revenue, secondary sparsity revenue, elementary sparsity
2.15revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
2.16pension adjustment revenue, and transition revenue.
2.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2026 and later.

2.18    Sec. 5. Minnesota Statutes 2024, section 126C.10, subdivision 2, is amended to read:
2.19    Subd. 2. Basic revenue. (a) The basic revenue for each district equals the formula
2.20allowance times the adjusted pupil units for the school year. The formula allowance for
2.21fiscal year 2023 is $6,863. The formula allowance for fiscal year 2024 is $7,138. The formula
2.22allowance for fiscal year 2025 is $7,281. The formula allowance for fiscal year 2026 is
2.23$7,481. The formula allowance for fiscal years 2027, 2028, and 2029 is $7,705.
2.24(b) The formula allowance for fiscal year 2026 2030 and later must be rounded to the
2.25nearest whole dollar and equals the formula allowance for the previous fiscal year times
2.26the greater of:
2.27(1) 1.02; or
2.28(2) one plus the rate of change in inflation calculated in paragraph (c) but not to exceed
2.291.03.
2.30(c) In January of the calendar year in which the formula allowance begins, the
2.31commissioner of education must calculate the rate of change in inflation equal to the change
3.1in the Consumer Price Index for all urban consumers as published by the Bureau of Labor
3.2Statistics of the Department of Labor for the average of the fourth calendar quarter of the
3.3second prior fiscal year compared to the average of the fourth calendar quarter of the
3.4immediately prior fiscal year.
3.5(d) The commissioner must publish the formula allowance by the end of February of
3.6each year.
3.7(e) It is the policy and purpose of the legislature to fund its public schools consistent
3.8with its constitutional obligations. To this purpose, the legislature may enact additional
3.9increases in the general education basic formula allowance.

3.10    Sec. 6. Minnesota Statutes 2024, section 126C.10, subdivision 2e, is amended to read:
3.11    Subd. 2e. Local optional Basic supplemental revenue. (a) Local optional Basic
3.12supplemental revenue for a school district equals the sum of the district's first tier local
3.13optional basic supplemental revenue and, second tier local optional basic supplemental
3.14revenue, and third tier basic supplemental revenue.
3.15(b) A district's first tier local optional basic supplemental revenue equals the first tier
3.16basic supplemental allowance times the adjusted pupil units of the district for that school
3.17year. The first tier basic supplemental allowance equals $40.34 for fiscal year 2026, $40.45
3.18for fiscal year 2027, and $147.76 for fiscal year 2028 and later.
3.19(c) A district's second tier basic supplemental revenue equals $300 times the adjusted
3.20pupil units of the district for that school year.
3.21(d) A district's second third tier local optional basic supplemental revenue equals $424
3.22times the adjusted pupil units of the district for that school year.
3.23(b) (e) A district's local optional basic supplemental levy equals the sum of the first
3.24second tier local optional basic supplemental levy and the second third tier local optional
3.25basic supplemental levy.
3.26(c) (f) A district's first second tier local optional basic supplemental levy equals the
3.27district's first second tier local optional basic supplemental revenue times the lesser of one
3.28or the ratio of the district's referendum market value per resident pupil unit to $880,000.
3.29(d) (g) For fiscal year 2023, a district's second tier local optional levy equals the district's
3.30second tier local optional revenue times the lesser of one or the ratio of the district's
3.31referendum market value per resident pupil unit to $548,842. For fiscal year 2024, a district's
3.32second tier local optional levy equals the district's second tier local optional revenue times
4.1the lesser of one or the ratio of the district's referendum market value per resident pupil unit
4.2to $510,000. For fiscal year 2025, a district's second third tier local optional basic
4.3supplemental levy equals the district's second third tier local optional basic supplemental
4.4revenue times the lesser of one or the ratio of the district's referendum market value per
4.5resident pupil unit to $626,450. For fiscal year 2026, a district's second third tier local
4.6optional basic supplemental levy equals the district's second third tier local optional basic
4.7supplemental revenue times the lesser of one or the ratio of the district's referendum market
4.8value per resident pupil unit to $642,038. For fiscal year 2027 and later, a district's second
4.9third tier local optional basic supplemental levy equals the district's second third tier local
4.10optional basic supplemental revenue times the lesser of one or the ratio of the district's
4.11referendum market value per resident pupil unit to $671,345.
4.12(e) (h) The local optional basic supplemental levy must be spread on referendum market
4.13value. A district may levy less than the permitted amount.
4.14(f) (i) A district's local optional basic supplemental aid equals its local optional basic
4.15supplemental revenue minus its local optional basic supplemental levy. If a district's actual
4.16levy for first or second tier local optional or third tier basic supplemental revenue is less
4.17than its maximum levy limit for that tier, its aid must be proportionately reduced.
4.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2026 and later.

4.19    Sec. 7. Minnesota Statutes 2024, section 126C.13, subdivision 4, is amended to read:
4.20    Subd. 4. General education aid. For fiscal year 2015 and later, A district's general
4.21education aid equals:
4.22(1) general education revenue, excluding operating capital revenue, equity revenue, local
4.23optional basic supplemental revenue, and transition revenue; plus
4.24(2) operating capital aid under section 126C.10, subdivision 13b;
4.25(3) equity aid under section 126C.10, subdivision 30; plus
4.26(4) transition aid under section 126C.10, subdivision 33; plus
4.27(5) shared time aid under section 126C.01, subdivision 7; plus
4.28(6) referendum aid under section 126C.17, subdivisions 7 and 7a; plus
4.29(7) online learning aid under section 124D.096; plus
4.30(8) local optional basic supplemental aid according to section 126C.10, subdivision 2e,
4.31paragraph (f).
5.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2026 and later.

5.2    Sec. 8. Minnesota Statutes 2024, section 126C.15, subdivision 2, is amended to read:
5.3    Subd. 2. Building allocation. (a) A district or cooperative must allocate at least 80
5.4percent of its compensatory revenue to each school building in the district or cooperative
5.5where the children who have generated the revenue are served unless the school district or
5.6cooperative has received permission under Laws 2005, First Special Session chapter 5,
5.7article 1, section 50, to allocate compensatory revenue according to student performance
5.8measures developed by the school board.
5.9    (b) A district or cooperative may allocate no more than 20 percent of the amount of
5.10compensatory revenue that the district receives to school sites according to a plan adopted
5.11by the school board. The money reallocated under this paragraph must be spent for the
5.12purposes listed in subdivision 1, but may be spent on students in any grade, including
5.13students attending school readiness or other prekindergarten programs.
5.14    (c) For the purposes of this section and section 126C.05, subdivision 3, "building" means
5.15education site as defined in section 123B.04, subdivision 1.
5.16    (d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue generated
5.17by students served at a cooperative unit shall be paid to the cooperative unit.
5.18    (e) A district or cooperative with school building openings, school building closings,
5.19changes in attendance area boundaries, or other changes in programs or student demographics
5.20between the prior year and the current year may reallocate compensatory revenue among
5.21sites to reflect these changes. A district or cooperative must report to the department any
5.22adjustments it makes according to this paragraph and the department must use the adjusted
5.23compensatory revenue allocations in preparing the report required under section 123B.76,
5.24subdivision 3
, paragraph (c).
5.25(f) For fiscal years 2026 and 2027 only, notwithstanding the percentages specified in
5.26paragraphs (a) and (b), a district may allocate up to 40 percent of the amount of compensatory
5.27revenue that the district receives to school sites according to a plan adopted by the school
5.28board, consistent with the purposes listed in subdivision 1.

5.29    Sec. 9. Minnesota Statutes 2024, section 126C.17, subdivision 7a, is amended to read:
5.30    Subd. 7a. Referendum tax base replacement aid. For each school district that had a
5.31referendum allowance for fiscal year 2002 exceeding $415, for each separately authorized
5.32referendum levy, the commissioner of revenue, in consultation with the commissioner of
6.1education, shall certify the amount of the referendum levy in taxes payable year 2001
6.2attributable to the portion of the referendum allowance exceeding $415 levied against
6.3property classified as class 2, noncommercial 4c(1), or 4c(4), under section 273.13, excluding
6.4the portion of the tax paid by the portion of class 2a property consisting of the house, garage,
6.5and surrounding one acre of land. The resulting amount must be used to reduce the district's
6.6referendum levy or first second tier local optional basic supplemental levy amount otherwise
6.7determined, and must be paid to the district each year that the referendum or first second
6.8tier local optional basic supplemental authority remains in effect, is renewed, or new
6.9referendum authority is approved. The aid payable under this subdivision must be subtracted
6.10from the district's referendum equalization aid under subdivision 7. The referendum
6.11equalization aid and the first second tier local optional basic supplemental aid after the
6.12subtraction must not be less than zero.
6.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2026 and later.

6.14    Sec. 10. Minnesota Statutes 2024, section 126C.17, subdivision 7b, is amended to read:
6.15    Subd. 7b. Referendum aid guarantee. (a) Notwithstanding subdivision 7, the sum of
6.16a district's referendum equalization aid and local optional aid under section 126C.10,
6.17subdivision 2e, for fiscal year 2015 must not be less than the sum of the referendum
6.18equalization aid the district would have received for fiscal year 2015 under Minnesota
6.19Statutes 2012, section 126C.17, subdivision 7, and the adjustment the district would have
6.20received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a),
6.21(b), and (c).
6.22(b) Notwithstanding subdivision 7, the sum of referendum equalization aid and local
6.23optional basic supplemental aid under section 126C.10, subdivision 2e, for fiscal year 2016
6.24and later, for a district qualifying for additional aid under Minnesota Statutes 2014, section
6.25126C.10, subdivision 2e, paragraph (a), for fiscal year 2015, must not be less than the product
6.26of (1) the sum of the district's referendum equalization aid and local optional aid under
6.27Minnesota Statutes 2014, section 126C.10, subdivision 2e, for fiscal year 2015, times (2)
6.28the lesser of one or the ratio of the sum of the district's referendum revenue and local optional
6.29basic supplemental revenue for that school year to the sum of the district's referendum
6.30revenue and local optional revenue for fiscal year 2015, times (3) the lesser of one or the
6.31ratio of the district's referendum market value used for fiscal year 2015 referendum
6.32equalization calculations to the district's referendum market value used for that year's
6.33referendum equalization calculations.
6.34EFFECTIVE DATE.This section is effective for revenue for fiscal year 2026 and later.

7.1    Sec. 11. Minnesota Statutes 2024, section 126C.43, subdivision 2, is amended to read:
7.2    Subd. 2. Payment to unemployment insurance program trust fund by state and
7.3political subdivisions. (a) A district may levy the amount necessary (1) to pay the district's
7.4obligations under section 268.052, subdivision 1, and (2) to pay for job placement services
7.5offered to employees who may become eligible for benefits pursuant to section 268.085 for
7.6the fiscal year the levy is certified.
7.7(b) Districts with a balance remaining in their reserve for reemployment as of June 30,
7.82003, may not expend the reserved funds for future reemployment expenditures. Each year
7.9a levy reduction must be made to return these funds to taxpayers. The amount of the levy
7.10reduction must be equal to the lesser of: (1) the remaining reserved balance for reemployment;
7.11or (2) the amount of the district's current levy under paragraph (a).
7.12(c) The amount in paragraph (a) must not include the amounts for hourly school
7.13employees during the period of the summer term prior to September 10, 2028.
7.14(d) Beginning September 10, 2028, the amount in paragraph (a) must not include any
7.15amounts for hourly school employees whose unemployment costs are included in special
7.16education costs eligible for aid under section 125A.76.

7.17    Sec. 12. Minnesota Statutes 2024, section 127A.47, subdivision 7, is amended to read:
7.18    Subd. 7. Alternative attendance programs. (a) The general education aid and special
7.19education aid for districts must be adjusted for each pupil attending a nonresident district
7.20under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments
7.21must be made according to this subdivision.
7.22    (b) For purposes of this subdivision, the "unreimbursed cost of providing special
7.23education and services" means the difference between: (1) the actual cost of providing
7.24special instruction and services, including special transportation and unreimbursed building
7.25lease and debt service costs for facilities used primarily for special education, for a pupil
7.26with a disability, as defined in section 125A.02, or a pupil, as defined in section 125A.51,
7.27who is enrolled in a program listed in this subdivision, minus (2) if the pupil receives special
7.28instruction and services outside the regular classroom for more than 60 percent of the school
7.29day, the amount of general education revenue, excluding local optional revenue, plus local
7.30optional aid and referendum equalization aid as defined in section 125A.11, subdivision 1,
7.31paragraph (d), attributable to that pupil for the portion of time the pupil receives special
7.32instruction and services outside of the regular classroom, excluding portions attributable to
7.33district and school administration, district support services, operations and maintenance,
8.1capital expenditures, and pupil transportation, minus (3) special education aid under section
8.2125A.76, excluding cross subsidy reduction aid under section 125A.76, subdivision 2e,
8.3attributable to that pupil, that is received by the district providing special instruction and
8.4services. For purposes of this paragraph, general education revenue and referendum
8.5equalization aid attributable to a pupil must be calculated using the serving district's average
8.6general education revenue and referendum equalization aid per adjusted pupil unit.
8.7(c) For fiscal year 2020, special education aid paid to a resident district must be reduced
8.8by an amount equal to 85 percent of the unreimbursed cost of providing special education
8.9and services. For fiscal year 2021 and later, special education aid paid to a resident district
8.10must be reduced by an amount equal to 80 percent of the unreimbursed cost of providing
8.11special education and services.
8.12(d) Notwithstanding paragraph (c), special education aid paid to a resident district must
8.13be reduced by an amount equal to 100 percent of the unreimbursed cost of special education
8.14and services provided to students at an intermediate district, cooperative, or charter school
8.15where the percent of students eligible for special education services is at least 70 percent
8.16of the charter school's total enrollment.
8.17(e) Notwithstanding paragraph (c), special education aid paid to a resident district must
8.18be reduced under paragraph (d) for students at a charter school receiving special education
8.19aid under section 124E.21, subdivision 3, calculated as if the charter school received special
8.20education aid under section 124E.21, subdivision 1.
8.21    (f) Special education aid paid to the district or cooperative providing special instruction
8.22and services for the pupil, or to the fiscal agent district for a cooperative, must be increased
8.23by the amount of the reduction in the aid paid to the resident district under paragraphs (c)
8.24and (d). If the resident district's special education aid is insufficient to make the full
8.25adjustment under paragraphs (c), (d), and (e), the remaining adjustment shall be made to
8.26other state aids due to the district.
8.27(g) Notwithstanding paragraph (a), general education aid paid to the resident district of
8.28a nonspecial education student for whom an eligible special education charter school receives
8.29general education aid under section 124E.20, subdivision 1, paragraph (c), must be reduced
8.30by an amount equal to the difference between the general education aid attributable to the
8.31student under section 124E.20, subdivision 1, paragraph (c), and the general education aid
8.32that the student would have generated for the charter school under section 124E.20,
8.33subdivision 1
, paragraph (a). For purposes of this paragraph, "nonspecial education student"
9.1means a student who does not meet the definition of pupil with a disability as defined in
9.2section 125A.02 or the definition of a pupil in section 125A.51.
9.3    (h) An area learning center operated by a service cooperative, intermediate district,
9.4education district, or a joint powers cooperative may elect through the action of the
9.5constituent boards to charge the resident district tuition for pupils rather than to have the
9.6general education revenue paid to a fiscal agent school district. Except as provided in
9.7paragraph (f), the district of residence must pay tuition equal to at least 90 and no more than
9.8100 percent of the district average general education revenue per pupil unit minus an amount
9.9equal to the product of the formula allowance according to section 126C.10, subdivision 2,
9.10times .0466, calculated without compensatory revenue, local optional revenue, and
9.11transportation sparsity revenue, times the number of pupil units for pupils attending the area
9.12learning center.
9.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2026 and later.

9.14    Sec. 13. Minnesota Statutes 2024, section 268.085, subdivision 7, is amended to read:
9.15    Subd. 7. School employees; between terms denial. (a) Wage credits from employment
9.16with an educational institution or institutions may not be used for unemployment benefit
9.17purposes for any week during the period between two successive academic years or terms
9.18if:
9.19    (1) the applicant had employment for an educational institution or institutions in the
9.20prior academic year or term; and
9.21    (2) there is a reasonable assurance that the applicant will have employment for an
9.22educational institution or institutions in the following academic year or term.
9.23    This paragraph applies to the period between two regular but not successive terms if
9.24there is an agreement for that schedule between the applicant and the educational institution.
9.25    This paragraph does not apply if the subsequent employment is substantially less
9.26favorable than the employment of the prior academic year or term, or the employment prior
9.27to the vacation period or holiday recess.
9.28    (b) Paragraph (a) does not apply to any week during the period between two successive
9.29academic years or terms if an applicant worked in a capacity other than instructional, research,
9.30or principal administrative capacity.
9.31    (c) Paragraph (a) applies to a vacation period or holiday recess if the applicant was
9.32employed immediately before the vacation period or holiday recess, and there is a reasonable
10.1assurance that the applicant will be employed immediately following the vacation period
10.2or holiday recess, including applicants who worked in a capacity other than instructional,
10.3research, or principal administrative capacity.
10.4    (d) This subdivision applies to employment with an educational service agency if the
10.5applicant performed the services at an educational institution or institutions. "Educational
10.6service agency" means a governmental entity established and operated for the purpose of
10.7providing services to one or more educational institutions.
10.8    (e) This subdivision applies to employment with Minnesota, a political subdivision, or
10.9a nonprofit organization, if the services are provided to or on behalf of an educational
10.10institution or institutions.
10.11    (f) Paragraph (a) applies beginning the Sunday of the week that there is a reasonable
10.12assurance of employment.
10.13    (g) Employment and a reasonable assurance with multiple education institutions must
10.14be aggregated for purposes of application of this subdivision.
10.15    (h) If all of the applicant's employment with any educational institution or institutions
10.16during the prior academic year or term consisted of on-call employment, and the applicant
10.17has a reasonable assurance of any on-call employment with any educational institution or
10.18institutions for the following academic year or term, it is not considered substantially less
10.19favorable employment.
10.20    (i) A "reasonable assurance" may be written, oral, implied, or established by custom or
10.21practice.
10.22    (j) An "educational institution" is a school, college, university, or other educational entity
10.23operated by Minnesota, a political subdivision or instrumentality thereof, or a nonprofit
10.24organization.
10.25    (k) An "instructional, research, or principal administrative capacity" does not include
10.26an educational assistant.
10.27(l) This subdivision expires September 9, 2028.

10.28    Sec. 14. Minnesota Statutes 2024, section 268.085, is amended by adding a subdivision
10.29to read:
10.30    Subd. 7a. Higher education employees; between terms. (a) Starting September 10,
10.312028, this subdivision governs unemployment benefits of employees of higher education
10.32institutions between academic years or terms.
11.1(b) Wage credits from employment with an educational institution or institutions may
11.2not be used for unemployment benefit purposes for any week during the period between
11.3two successive academic years or terms if:
11.4(1) the applicant had employment for an educational institution or institutions in the
11.5prior academic year or term; and
11.6(2) there is a reasonable assurance that the applicant will have employment for an
11.7educational institution or institutions in the following academic year or term.
11.8This paragraph applies to the period between two regular but not successive terms if there
11.9is an agreement for that schedule between the applicant and the educational institution.
11.10This paragraph does not apply if the subsequent employment is substantially less favorable
11.11than the employment of the prior academic year or term, or the employment prior to the
11.12vacation period or holiday recess.
11.13(c) Paragraph (b) does not apply to any week during the period between two successive
11.14academic years or terms if an applicant worked in a capacity other than instructional, research,
11.15or principal administrative capacity.
11.16(d) Paragraph (b) applies to a vacation period or holiday recess if the applicant was
11.17employed immediately before the vacation period or holiday recess, and there is a reasonable
11.18assurance that the applicant will be employed immediately following the vacation period
11.19or holiday recess, including applicants who worked in a capacity other than instructional,
11.20research, or principal administrative capacity.
11.21(e) This subdivision applies to employment with an educational service agency if the
11.22applicant performed the services at an educational institution or institutions. "Educational
11.23service agency" means a governmental entity established and operated for the purpose of
11.24providing services to one or more educational institutions.
11.25(f) This subdivision applies to employment with Minnesota, a political subdivision, or
11.26a nonprofit organization, if the services are provided to or on behalf of an educational
11.27institution or institutions.
11.28(g) Paragraph (b) applies beginning the Sunday of the week that there is a reasonable
11.29assurance of employment.
11.30(h) Employment and a reasonable assurance with multiple education institutions must
11.31be aggregated for purposes of application of this subdivision.
12.1(i) If all of the applicant's employment with any educational institution or institutions
12.2during the prior academic year or term consisted of on-call employment, and the applicant
12.3has a reasonable assurance of any on-call employment with any educational institution or
12.4institutions for the following academic year or term, it is not considered substantially less
12.5favorable employment.
12.6(j) A "reasonable assurance" may be written, oral, implied, or established by custom or
12.7practice.
12.8(k) For purposes of this subdivision, an "educational institution" is a college or university
12.9operated by Minnesota, a political subdivision or instrumentality thereof, or a nonprofit
12.10organization.
12.11(l) An "instructional, research, or principal administrative capacity" does not include an
12.12educational assistant.

12.13    Sec. 15. Minnesota Statutes 2024, section 268.085, is amended by adding a subdivision
12.14to read:
12.15    Subd. 7b. School employees; between terms. (a) Starting September 10, 2028, this
12.16subdivision governs unemployment benefits of school employees between academic years
12.17or terms.
12.18(b) Wage credits from employment with an educational institution or institutions may
12.19not be used for unemployment benefit purposes for any week during the period between
12.20two successive academic years or terms if:
12.21(1) the applicant had employment for an educational institution or institutions in the
12.22prior academic year or term; and
12.23(2) there is a reasonable assurance that the applicant will have employment for an
12.24educational institution or institutions in the following academic year or term.
12.25This paragraph applies to a vacation period or holiday recess if the applicant was employed
12.26immediately before the vacation period or holiday recess, and there is a reasonable assurance
12.27that the applicant will be employed immediately following the vacation period or holiday
12.28recess. This paragraph also applies to the period between two regular but not successive
12.29terms if there is an agreement for that schedule between the applicant and the educational
12.30institution.
13.1This paragraph does not apply if the subsequent employment is substantially less favorable
13.2than the employment of the prior academic year or term, or the employment prior to the
13.3vacation period or holiday recess.
13.4(c) Paragraph (b) does not apply to an applicant who, at the end of the prior academic
13.5year or term, had an agreement for a definite period of employment between academic years
13.6or terms in other than an instructional, research, or principal administrative capacity and
13.7the educational institution or institutions failed to provide that employment.
13.8(d) If unemployment benefits are denied to any applicant under paragraph (b) who was
13.9employed in the prior academic year or term in other than an instructional, research, or
13.10principal administrative capacity and who was not offered an opportunity to perform the
13.11employment in the following academic year or term, the applicant is entitled to retroactive
13.12unemployment benefits for each week during the period between academic years or terms
13.13that the applicant filed a timely continued request for unemployment benefits, but
13.14unemployment benefits were denied solely because of paragraph (b).
13.15(e) This subdivision applies to employment with an educational service agency if the
13.16applicant performed the services at an educational institution or institutions. "Educational
13.17service agency" means a governmental entity established and operated for the purpose of
13.18providing services to one or more educational institutions.
13.19(f) This subdivision applies to employment with Minnesota, a political subdivision, or
13.20a nonprofit organization, if the services are provided to or on behalf of an educational
13.21institution or institutions.
13.22(g) Paragraph (b) applies beginning the Sunday of the week that there is a reasonable
13.23assurance of employment.
13.24(h) Employment and a reasonable assurance with multiple education institutions must
13.25be aggregated for purposes of application of this subdivision.
13.26(i) If all of the applicant's employment with any educational institution or institutions
13.27during the prior academic year or term consisted of on-call employment, and the applicant
13.28has a reasonable assurance of any on-call employment with any educational institution or
13.29institutions for the following academic year or term, it is not considered substantially less
13.30favorable employment.
13.31(j) A "reasonable assurance" may be written, oral, implied, or established by custom or
13.32practice.
14.1(k) For purposes of this subdivision, an "educational institution" is a school or other
14.2educational entity operated by Minnesota, a political subdivision or instrumentality thereof,
14.3or a nonprofit organization.
14.4(l) An "instructional, research, or principal administrative capacity" does not include an
14.5educational assistant.

14.6    Sec. 16. Minnesota Statutes 2024, section 268.085, is amended by adding a subdivision
14.7to read:
14.8    Subd. 8a. Services for school contractors. (a) Starting September 10, 2028, wage credits
14.9from an employer are subject to subdivision 7b, if:
14.10(1) the employment was provided under a contract between the employer and an
14.11elementary or secondary school; and
14.12(2) the contract was for services that the elementary or secondary school could have had
14.13performed by its employees.
14.14(b) Wage credits from an employer are not subject to subdivision 7b if:
14.15(1) those wage credits were earned by an employee of a private employer performing
14.16work under a contract between the employer and an elementary or secondary school; and
14.17(2) the employment was related to food services provided to the school by the employer.

14.18    Sec. 17. Laws 2023, chapter 55, article 1, section 36, subdivision 12, is amended to read:
14.19    Subd. 12. Career and technical program expansion; aeronautics pilot program. (a)
14.20For Independent School District No. 482, Little Falls, for an aeronautics and commercial
14.21over-the-road technical program:
14.22
$
450,000
.....
2024
14.23(b) The funds must be used to help support the district's aeronautics and commercial
14.24over-the-road technical pilot program. The funds may be used for equipment, staffing costs,
14.25travel costs, and contracted services.
14.26(c) By February 1, 2027, the district must report to the chairs and ranking minority
14.27members of the legislative committees with jurisdiction over kindergarten through grade
14.2812 education on the activities funded by this appropriation. The report must include but is
14.29not limited to information about program participation and demographic information about
14.30the students served in the program, a description of the type of activities offered by each
14.31program during the year, partnerships with higher education and private providers of
15.1aeronautic and commercial over-the-road services, and recommendations for state actions
15.2that could improve aeronautics and commercial over-the-road programming for all school
15.3districts. The report must also describe how the district's early expenditures for the program
15.4were successful in providing the aeronautics and commercial over-the-road technical program
15.5in a more timely manner to the district's participating students.
15.6(d) The school district's program expenditures for this program occurring after May 24,
15.72023, and prior to the Department of Education officially awarding this grant to the school
15.8district, qualify as eligible program expenditures and are reimbursable from the grant amount
15.9in paragraph (a).
15.10(d) (e) This appropriation is available until June 30, 2026. This is a onetime appropriation.
15.11EFFECTIVE DATE.This section is effective retroactively from May 24, 2023.

15.12    Sec. 18. COMPENSATORY REVENUE TASK FORCE.
15.13    Subdivision 1. Task force established. A task force is established to analyze the general
15.14education compensatory revenue formula, including the purpose of the program, the revenue
15.15levels of the program, the distribution formula for the revenue, the uses of compensatory
15.16revenue, and methods to evaluate the outcomes of compensatory revenue spending.
15.17    Subd. 2. Membership. The Compensatory Revenue Task Force consists of the
15.18commissioner of education or the commissioner's designee and 15 other members who must
15.19be appointed by August 15, 2025, as follows:
15.20(1) two members appointed by the majority leader of the senate;
15.21(2) two members appointed by the minority leader of the senate;
15.22(3) two members appointed by the speaker of the house;
15.23(4) two members appointed by the speaker emerita of the house;
15.24(5) three school administrators appointed by the commissioner, one representing each
15.25of the following: a rural school district or charter school, a metropolitan area school district
15.26or charter school, and a racially and economically diverse school district or charter school;
15.27(6) two teachers appointed by the commissioner of education, including a teacher from
15.28the metropolitan area and a teacher from greater Minnesota; and
15.29(7) two members appointed by the commissioner who represent community organizations.
15.30    Subd. 3. Consultation and advice. The commissioner of education and the task force
15.31must request expert advice as necessary, including advice and technical assistance from
16.1representatives of the Department of Revenue regarding pupil identification methods
16.2voluntarily linked to certain state income tax data and the state demographer's office regarding
16.3census information that may inform the compensatory revenue formula, and general school
16.4district accounting and business practices advice from representatives suggested by the
16.5Minnesota Association of School Business Officials.
16.6    Subd. 4. Duties. The task force must:
16.7(1) evaluate which students currently generate compensatory revenue, examine whether
16.8this student count aligns with students who are under-prepared to learn or otherwise not
16.9meeting academic standards, and determine the best student population to target with
16.10compensatory revenue;
16.11(2) examine and determine the best proxy and demographic variables to identify students,
16.12sites, and districts in need of assistance to help students better meet academic standards and
16.13prepare to learn;
16.14(3) examine potential input data elements for determining compensatory revenue,
16.15including income tax data, census information, and federal school meals eligibility, whether
16.16identified through direct certification of income from public assistance program participation
16.17or through the application for educational benefits;
16.18(4) determine whether compensatory revenue should be generated at the school district
16.19or school site level;
16.20(5) evaluate whether the compensatory revenue formula should contain a concentration
16.21formula;
16.22(6) examine the interrelationships between the compensatory revenue program and
16.23extended time revenue program, including summer school, and propose methods to better
16.24integrate compensatory revenue and extended time revenue;
16.25(7) evaluate the best uses of compensatory revenue; and
16.26(8) evaluate potential ways to examine the effectiveness of compensatory revenue,
16.27including measures of absolute levels and growth in student attendance, graduation rates,
16.28assessment results, student behavior, and disciplinary events.
16.29    Subd. 5. Compensation. Minnesota Statutes, section 15.059, subdivision 3, governs
16.30compensation of the members of the task force.
16.31    Subd. 6. Meetings and administrative support. (a) The commissioner of education or
16.32the commissioner's designee must convene the first meeting of the task force no later than
17.1September 15, 2025. The task force must establish a schedule for meetings and meet as
17.2necessary to accomplish the duties under this section. Meetings are subject to Minnesota
17.3Statutes, chapter 13D. The task force may meet by telephone or interactive technology
17.4consistent with Minnesota Statutes, section 13D.015.
17.5(b) The Department of Education must provide administrative support to assist the task
17.6force in its work, including providing information, data, and technical support, and the
17.7department must assist in the creation of the task force reports.
17.8    Subd. 7. Reporting. The task force must issue a preliminary report to the legislature by
17.9February 15, 2026, and a final report to the legislature by September 15, 2026. The reports
17.10must be prepared and filed consistent with the requirements of Minnesota Statutes, section
17.113.195, and submitted to the chairs and ranking minority members of the legislative
17.12committees with jurisdiction over education finance and policy.
17.13    Subd. 8. Expiration. The task force expires September 15, 2026.

17.14    Sec. 19. APPROPRIATIONS.
17.15    Subdivision 1. Department of Education. The sums indicated in this section are
17.16appropriated from the general fund to the Department of Education for the fiscal years
17.17designated.
17.18    Subd. 2. General education aid. (a) For general education aid under Minnesota Statutes,
17.19section 126C.13, subdivision 4:
17.20
$
8,483,842,000
.....
2026
17.21
$
8,786,840,000
.....
2027
17.22(b) The 2026 appropriation includes $783,251,000 for 2025 and $7,700,591,000 for
17.232026.
17.24(c) The 2027 appropriation includes $804,270,000 for 2026 and $7,982,570,000 for
17.252027.
17.26    Subd. 3. Enrollment options transportation. For transportation of pupils attending
17.27postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
17.28of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:
17.29
$
25,000
.....
2026
17.30
$
27,000
.....
2027
17.31    Subd. 4. Abatement aid. (a) For abatement aid under Minnesota Statutes, section
17.32127A.49:
18.1
$
1,929,000
.....
2026
18.2
$
2,340,000
.....
2027
18.3(b) The 2026 appropriation includes $140,000 for 2025 and $1,789,000 for 2026.
18.4(c) The 2027 appropriation includes $198,000 for 2026 and $2,142,000 for 2027.
18.5    Subd. 5. Consolidation transition aid. (a) For districts consolidating under Minnesota
18.6Statutes, section 123A.485:
18.7
$
572,000
.....
2026
18.8
$
350,000
.....
2027
18.9(b) The 2026 appropriation includes $0 for 2025 and $572,000 for 2026.
18.10(c) The 2027 appropriation includes $64,000 for 2026 and $286,000 for 2027.
18.11    Subd. 6. Nonpublic pupil education aid. (a) For nonpublic pupil education aid under
18.12Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:
18.13
$
25,349,000
.....
2026
18.14
$
27,160,000
.....
2027
18.15(b) The 2026 appropriation includes $2,355,000 for 2025 and $22,994,000 for 2026.
18.16(c) The 2027 appropriation includes $2,554,000 for 2026 and $24,606,000 for 2027.
18.17    Subd. 7. Nonpublic pupil transportation. (a) For nonpublic pupil transportation aid
18.18under Minnesota Statutes, section 123B.92, subdivision 9:
18.19
$
28,123,000
.....
2026
18.20
$
29,359,000
.....
2027
18.21(b) The 2026 appropriation includes $2,609,000 for 2025 and $25,514,000 for 2026.
18.22(c) The 2027 appropriation includes $2,834,000 for 2026 and $26,525,000 for 2027.
18.23    Subd. 8. One-room schoolhouse. (a) For aid to Independent School District No. 690,
18.24Warroad, to operate the Angle Inlet School:
18.25
$
65,000
.....
2026
18.26
$
65,000
.....
2027
18.27(b) This aid is 100 percent payable in the current year.
18.28    Subd. 9. Career and technical aid. (a) For career and technical aid under Minnesota
18.29Statutes, section 124D.4531, subdivision 1b:
19.1
$
451,000
.....
2026
19.2
$
350,000
.....
2027
19.3(b) The 2026 appropriation includes $85,000 for 2025 and $366,000 for 2026.
19.4(c) The 2027 appropriation includes $40,000 for 2026 and $310,000 for 2027.
19.5    Subd. 10. Pregnant and parenting pupil transportation reimbursement. (a) To
19.6reimburse districts for transporting pregnant or parenting pupils under Minnesota Statutes,
19.7section 123B.92, subdivision 1, paragraph (b), clause (1), item (vi):
19.8
$
55,000
.....
2026
19.9
$
55,000
.....
2027
19.10(b) To receive reimbursement, districts must apply in the form and manner prescribed
19.11by the commissioner. If the appropriation is insufficient, the commissioner must prorate
19.12the amount paid to districts seeking reimbursement.
19.13(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
19.14    Subd. 11. Career and technical education consortium. (a) To the Minnesota Service
19.15Cooperatives for career and technical education consortium grants under Minnesota Statutes,
19.16section 124D.4536:
19.17
$
5,000,000
.....
2026
19.18
$
5,000,000
.....
2027
19.19(b) If the appropriation in fiscal year 2026 is insufficient, the appropriation in fiscal year
19.202027 is available.
19.21(c) Up to three percent of the appropriation is available for grant administration.
19.22(d) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
19.23    Subd. 12. Emergency medical training. (a) For grants to offer high school students
19.24courses in emergency medical services:
19.25
$
500,000
.....
2026
19.26
$
500,000
.....
2027
19.27(b) A school district, charter school, Tribal contract school, or cooperative unit under
19.28Minnesota Statutes, section 123A.24, subdivision 2, may apply for a grant under this section
19.29to offer enrolled students emergency medical services courses approved by the Minnesota
19.30Emergency Medical Services Regulatory Board to prepare students to take the emergency
19.31medical technician certification test, including an emergency medical services course that
19.32is a prerequisite to an emergency medical technician course.
20.1(c) A grant recipient may use grant funds to partner with a district, charter school,
20.2cooperative unit, postsecondary institution, political subdivision, or entity with expertise in
20.3emergency medical services, including health systems, hospitals, ambulance services, and
20.4health care providers to offer an emergency medical services course.
20.5(d) Eligible uses of grant funds include teacher salaries, transportation, equipment costs,
20.6emergency medical technician certification test fees, and student background checks.
20.7(e) To the extent practicable, the commissioner must award at least half of the grant
20.8funds to applicants outside of the seven-county metropolitan area, and at least 30 percent
20.9of the grant funds to applicants with high concentrations of students of color.
20.10(f) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
20.11    Subd. 13. Area learning center transportation aid. (a) For area learning center
20.12transportation aid under Minnesota Statutes, section 123B.92, subdivision 11:
20.13
$
1,000,000
.....
2026
20.14
$
1,000,000
.....
2027
20.15(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
20.16(c) This aid is 100 percent payable in the current year.
20.17    Subd. 14. Unemployment aid for hourly workers over the summer term. (a) For
20.18unemployment aid under Minnesota Statutes, section 124D.995:
20.19
$
100,000,000
.....
2026
20.20(b) This appropriation is subject to the requirements of Minnesota Statutes, section
20.21124D.995.
20.22(c) This is a onetime appropriation.
20.23    Subd. 15. Compensatory Revenue Task Force. For the Compensatory Revenue Task
20.24Force under section 16:
20.25
$
110,000
.....
2026
20.26(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
20.27(c) This is a onetime appropriation.

21.1    Sec. 20. REVISOR INSTRUCTION.
21.2The revisor of statutes shall replace "local optional revenue," "local optional aid," and
21.3"local optional levy" with "basic supplemental revenue," "basic supplemental aid," and
21.4"basic supplemental levy" and correct all cross-references.

21.5ARTICLE 2
21.6EDUCATION EXCELLENCE

21.7    Section 1. Minnesota Statutes 2024, section 124D.42, subdivision 9, is amended to read:
21.8    Subd. 9. Minnesota math corps program. (a) A Minnesota math corps program is
21.9established to give provide ServeMinnesota AmeriCorps members with a data-based
21.10problem-solving model of mathematics instruction useful for to use in providing elementary
21.11and middle school students and their teachers with instructional support. Minnesota math
21.12corps must use evidence-based instructional support to evaluate and accelerate student
21.13learning on foundational mathematics skills that enable students to meet state academic
21.14standards in mathematics and long-term proficiency expectations for the workforce.
21.15(b) The commission must submit a biennial report to the committees of the legislature
21.16with jurisdiction over kindergarten through grade 12 education that records and evaluates
21.17program data to determine the efficacy of the programs under this subdivision.
21.18(c) For purposes of this subdivision, "evidence-based" means the instruction or curriculum
21.19is based on reliable, trustworthy, and valid evidence and has demonstrated a record of
21.20success in increasing student competency and proficiency in mathematics and numeracy.
21.21EFFECTIVE DATE.This section is effective July 1, 2025.

21.22    Sec. 2. Laws 2023, chapter 55, article 2, section 64, subdivision 16, as amended by Laws
21.232024, chapter 115, article 2, section 16, is amended to read:
21.24    Subd. 16. Full-service community schools. (a) For grants to plan or expand the
21.25full-service community schools program under Minnesota Statutes, section 124D.231:
21.26
$
7,500,000
.....
2024
21.27
$
7,500,000
.....
2025
21.28(b) Of this amount, priority must be given to programs in the following order:
21.29(1) current grant recipients issued under Minnesota Statutes, section 124D.231;
21.30(2) schools identified as low-performing under the federal Every Student Succeeds Act;
21.31and
22.1(3) any other applicants.
22.2(c) Up to two percent of the appropriation is available for grant administration.
22.3(d) The base for fiscal year 2026 and later is $5,000,000.
22.4(e) Any balance in the first year does not cancel but is available in the second year. This
22.5appropriation is available until June 30, 2027.
22.6EFFECTIVE DATE.This section is effective the day following final enactment.

22.7    Sec. 3. APPROPRIATIONS.
22.8    Subdivision 1. Department of Education. The sums indicated in this section are
22.9appropriated from the general fund to the Department of Education for the fiscal years
22.10designated.
22.11    Subd. 2. Achievement and integration aid. (a) For achievement and integration aid
22.12under Minnesota Statutes, section 124D.862:
22.13
$
85,619,000
.....
2026
22.14
$
85,222,000
.....
2027
22.15(b) The 2026 appropriation includes $8,446,000 for 2025 and $77,173,000 for 2026.
22.16(c) The 2027 appropriation includes $8,575,000 for 2026 and $76,647,000 for 2027.
22.17    Subd. 3. Alternative programs. (a) For a grant to the Minnesota Association of
22.18Alternative Programs STARS (Success, Teamwork, Achievement, Recognition, and
22.19Self-esteem) program to help students in alternative programs develop employment,
22.20academic, and social skills and to support student participation in trainings and conferences:
22.21
$
55,000
.....
2026
22.22
$
55,000
.....
2027
22.23(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
22.24(c) This is a onetime appropriation.
22.25    Subd. 4. Charter school building lease aid. (a) For building lease aid under Minnesota
22.26Statutes, section 124E.22:
22.27
$
96,453,000
.....
2026
22.28
$
99,135,000
.....
2027
22.29(b) The 2026 appropriation includes $9,391,000 for 2025 and $87,062,000 for 2026.
22.30(c) The 2027 appropriation includes $9,673,000 for 2026 and $89,462,000 for 2027.
23.1    Subd. 5. College entrance examination reimbursement. (a) To reimburse districts for
23.2the costs of college entrance examination fees for students who are eligible for free or
23.3reduced-price meals who take the ACT or SAT test under Minnesota Statutes, section
23.4120B.30, subdivision 16:
23.5
$
1,011,000
.....
2026
23.6
$
1,011,000
.....
2027
23.7(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
23.8    Subd. 6. COMPASS and MTSS. (a) To support the development and implementation
23.9of the MTSS framework and the Collaborative Minnesota Partnerships to Advance Student
23.10Success (COMPASS) school improvement model:
23.11
$
13,500,000
.....
2026
23.12
$
13,500,000
.....
2027
23.13(b) Of this amount, $5,000,000 each year is to support implementation of MTSS and
23.14COMPASS. Funds must be used to support increased capacity at the Department of Education
23.15and the Minnesota service cooperatives for implementation supports.
23.16(c) Of this amount, $5,000,000 each year is reserved for grants to school districts, charter
23.17schools, Tribal contract schools, and cooperative units as defined in Minnesota Statutes,
23.18section 123A.24, subdivision 2, for implementation of MTSS, including: hiring local MTSS
23.19coordinators; deferring costs for personnel to participate in cohort activities and professional
23.20learning; and piloting the Department of Education One Plan, the consolidation of multiple
23.21reporting structures to streamline various applications, reports, and submissions by school
23.22districts and charter schools. Up to five percent of this amount is available for program and
23.23grant administration.
23.24(d) Of this amount, $3,000,000 each year must be used to develop a regional network
23.25focusing on mathematics to provide dedicated mathematics trainers and coaches to train
23.26regional support staff from the Minnesota service cooperatives and to support school leaders
23.27and teachers to implement evidence-based instructional strategies in mathematics. Funds
23.28may also be used to host an annual mathematics standards-based instructional institute.
23.29(e) Of this amount, $500,000 each year is for the University of Minnesota Center for
23.30Applied Research and Educational Improvement to support implementation and evaluation
23.31of the MTSS framework.
23.32(f) Support for school districts, charter schools, and cooperative units under this
23.33subdivision may include but is not limited to:
24.1(1) partnering with the Minnesota Service Cooperatives to support districts in
24.2implementing COMPASS to support schools in the areas of literacy, math, social-emotional
24.3learning, and mental health using the MTSS framework;
24.4(2) providing support to districts and charter schools identified under Minnesota Statutes,
24.5section 120B.11;
24.6(3) providing support to districts and charter schools to streamline various applications,
24.7reports, and submissions to the Department of Education through One Plan;
24.8(4) providing training, guidance, and implementation resources for MTSS, including a
24.9universal screening process approved by the Department of Education to identify students
24.10who may be at risk of experiencing academic, behavioral, and social-emotional development
24.11difficulties;
24.12(5) providing guidance to convene school-based teams to analyze data provided by
24.13screenings and resources for related identification, instruction, and intervention methods;
24.14(6) dyslexia screening and interventions that are evidence-based;
24.15(7) requiring school districts and charter schools to provide parents of students identified
24.16in screenings with notice of screening findings and related support information;
24.17(8) requiring districts and charter schools to provide at-risk students with interventions
24.18and to monitor the effectiveness of these interventions and student progress; and
24.19(9) developing and annually reporting findings regarding the implementation of MTSS.
24.20(g) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
24.21    Subd. 7. Computer science education advancement. (a) For computer science
24.22advancement:
24.23
$
500,000
.....
2026
24.24
$
500,000
.....
2027
24.25(b) Of this amount, $150,000 is for the computer science supervisor.
24.26(c) Eligible uses of the appropriation include expenses related to the implementation of
24.27Laws 2023, chapter 55, article 2, section 61, and expenses related to the development,
24.28advancement, and promotion of kindergarten through grade 12 computer science education.
24.29(d) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
24.30    Subd. 8. Concurrent enrollment aid. (a) For concurrent enrollment aid under Minnesota
24.31Statutes, section 124D.091:
25.1
$
4,000,000
.....
2026
25.2
$
4,000,000
.....
2027
25.3(b) If the appropriation is insufficient, the commissioner must proportionately reduce
25.4the aid payment to each school district.
25.5(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
25.6    Subd. 9. Ethnic studies community consultation. (a) To consult with community
25.7members throughout Minnesota on the development of ethnic studies curricula, resources,
25.8and implementation support:
25.9
$
150,000
.....
2026
25.10
$
150,000
.....
2027
25.11(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
25.12    Subd. 10. Ethnic studies school grants. (a) For competitive grants to school districts,
25.13charter schools, and Tribal contract schools to develop, evaluate, and implement ethnic
25.14studies courses:
25.15
$
700,000
.....
2026
25.16
$
700,000
.....
2027
25.17(b) The commissioner must consult with the Ethnic Studies Working Group to develop
25.18criteria for the grants.
25.19(c) Up to five percent of the appropriation is available for grant administration.
25.20(d) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
25.21    Subd. 11. Examination fees; teacher training and support programs. (a) For students'
25.22advanced placement and international baccalaureate examination fees under Minnesota
25.23Statutes, section 120B.13, subdivision 3, and for training and related costs for teachers and
25.24other interested educators under Minnesota Statutes, section 120B.13, subdivision 1:
25.25
$
4,500,000
.....
2026
25.26
$
4,500,000
.....
2027
25.27(b) The advanced placement program shall receive 75 percent of the appropriation each
25.28year and the international baccalaureate program shall receive 25 percent of the appropriation
25.29each year. The department, in consultation with representatives of the advanced placement
25.30and international baccalaureate programs selected by the Advanced Placement Advisory
25.31Council and International Baccalaureate Minnesota, respectively, shall determine the amounts
26.1of the expenditures each year for examination fees, training, and support programs for each
26.2program.
26.3(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least $500,000
26.4each year is for teachers to attend subject matter summer training programs and follow-up
26.5support workshops approved by the advanced placement or international baccalaureate
26.6programs. The amount of the subsidy for each teacher attending an advanced placement or
26.7international baccalaureate summer training program or workshop shall be the same. The
26.8commissioner shall determine the payment process and the amount of the subsidy.
26.9(d) The commissioner shall pay all examination fees for all students of low-income
26.10families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent funds
26.11are available, shall also pay examination fees for students sitting for an advanced placement
26.12examination, international baccalaureate examination, or both.
26.13(e) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
26.14    Subd. 12. Full-service community schools. (a) For grants to plan or expand the
26.15full-service community schools program under Minnesota Statutes, section 124D.231:
26.16
$
5,000,000
.....
2026
26.17
$
5,000,000
.....
2027
26.18(b) Of this amount, priority must be given to programs in the following order:
26.19(1) current grant recipients under Minnesota Statutes, section 124D.231;
26.20(2) schools identified as low-performing under the federal Every Student Succeeds Act;
26.21and
26.22(3) any other applicants.
26.23(c) Up to two percent of the appropriation is available for grant administration.
26.24(d) The fiscal year 2026 appropriation is available until June 30, 2029. The fiscal year
26.252027 appropriation is available June 30, 2030.
26.26    Subd. 13. Grants to increase science, technology, engineering, and math course
26.27offerings. (a) For grants to schools to encourage low-income and other underserved students
26.28to participate in advanced placement and international baccalaureate programs according
26.29to Minnesota Statutes, section 120B.132:
26.30
$
250,000
.....
2026
26.31
$
250,000
.....
2027
27.1(b) To the extent practicable, the commissioner must distribute grant funds equitably
27.2among geographic areas in the state, including to schools located in greater Minnesota and
27.3in the seven-county metropolitan area.
27.4(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
27.5    Subd. 14. Implementation of education on the Holocaust, genocide of Indigenous
27.6Peoples, and other genocides. (a) For implementation of requirements for education on
27.7the Holocaust, genocide of Indigenous Peoples, and other genocides under Minnesota
27.8Statutes, section 120B.252:
27.9
$
75,000
.....
2026
27.10
$
75,000
.....
2027
27.11(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
27.12    Subd. 15. Interdistrict desegregation or integration transportation grants. For
27.13interdistrict desegregation or integration transportation grants under Minnesota Statutes,
27.14section 124D.87:
27.15
$
16,396,000
.....
2026
27.16
$
18,157,000
.....
2027
27.17    Subd. 16. Literacy incentive aid. (a) For literacy incentive aid under Minnesota Statutes,
27.18section 124D.98:
27.19
$
40,686,000
.....
2026
27.20
$
40,897,000
.....
2027
27.21(b) The 2026 appropriation includes $4,057,000 for 2025 and $36,629,000 for 2026.
27.22(c) The 2027 appropriation includes $4,069,000 for 2026 and $36,828,000 for 2027.
27.23    Subd. 17. Minnesota Center for the Book programming. (a) For grants to the entity
27.24designated by the Library of Congress as the Minnesota Center for the Book to provide
27.25statewide programming related to the Minnesota Book Awards and for additional
27.26programming throughout the state related to the Center for the Book designation:
27.27
$
200,000
.....
2026
27.28
$
200,000
.....
2027
27.29(b) Up to three percent of the appropriation is available for grant administration.
27.30(c) This is a onetime appropriation.
27.31(d) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
28.1    Subd. 18. Minnesota Independence College and Community. (a) For transfer to the
28.2Office of Higher Education for grants to Minnesota Independence College and Community
28.3for tuition reduction and institutional support:
28.4
$
625,000
.....
2026
28.5
$
625,000
.....
2027
28.6(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
28.7(c) By January 15 of each year, Minnesota Independence College and Community must
28.8submit a report detailing expenditures, activities, and outcomes to the commissioner and
28.9the chairs and ranking minority members of the legislative committees with jurisdiction
28.10over kindergarten through grade 12 education.
28.11    Subd. 19. Minnesota math corps. (a) For the Minnesota math corps program under
28.12Minnesota Statutes, section 124D.42, subdivision 9:
28.13
$
2,000,000
.....
2026
28.14
$
1,000,000
.....
2027
28.15(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
28.16(c) The base for fiscal year 2028 and later is $1,000,000.
28.17    Subd. 20. Minnesota Principals Academy. (a) For grants to the University of Minnesota
28.18College of Education and Human Development for the operation of the Minnesota Principals
28.19Academy:
28.20
$
200,000
.....
2026
28.21
$
200,000
.....
2027
28.22(b) Of these amounts, $50,000 must be used to pay the costs of attendance for principals
28.23and school leaders from schools identified for intervention under the state's accountability
28.24system as implemented to comply with the federal Every Student Succeeds Act. To the
28.25extent funds are available, the Department of Education is encouraged to use up to $200,000
28.26of federal Title II funds to support additional participation in the Principals Academy by
28.27principals and school leaders from schools identified for intervention under the state's
28.28accountability system as implemented to comply with the federal Every Student Succeeds
28.29Act.
28.30(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
28.31    Subd. 21. Minnesota Youth Council. (a) For grants to the Minnesota Alliance With
28.32Youth for the activities of the Minnesota Youth Council:
29.1
$
375,000
.....
2026
29.2
$
375,000
.....
2027
29.3(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
29.4(c) This is a onetime appropriation.
29.5    Subd. 22. Museums and education centers. (a) For grants to museums and education
29.6centers:
29.7
$
1,791,000
.....
2026
29.8
$
1,791,000
.....
2027
29.9(b) $500,000 each year is for the Minnesota Children's Museum.
29.10(c) $50,000 each year is for the Children's Museum of Rochester.
29.11(d) $41,000 each year is for the Minnesota Academy of Science.
29.12(e) $100,000 each year is for The Bakken Museum, Minneapolis.
29.13(f) $60,000 each year is for the Headwaters Science Center.
29.14(g) $100,000 each year is for The Works Museum, Bloomington.
29.15(h) $100,000 each year is for the WonderTrek Children's Museum, Brainerd-Baxter.
29.16(i) $100,000 each year is for the Otter Cove Children's Museum, Fergus Falls.
29.17(j) $100,000 each year is for the Children's Discovery Museum, Grand Rapids.
29.18(k) $100,000 each year is for the Wheel and Cog Children's Museum, Hutchinson.
29.19(l) $100,000 each year is for the Village Children's Museum, Willmar.
29.20(m) $110,000 each year is for the Duluth Children's Museum, Duluth.
29.21(n) $110,000 each year is for the Children's Museum of Southern Minnesota, Mankato.
29.22(o) $110,000 each year is for the Great River Children's Museum, St. Cloud.
29.23(p) $110,000 each year is for the Children's Discovery Museum, Breckenridge.
29.24(q) A recipient of a grant under this subdivision must use the funds to encourage and
29.25increase access for historically underserved communities.
29.26(r) Up to three percent of the appropriation is available for grant administration.
29.27(s) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
29.28    Subd. 23. Nonexclusionary discipline. (a) For grants to school districts and charter
29.29schools to provide training for school staff on nonexclusionary disciplinary practices:
30.1
$
1,750,000
.....
2026
30.2
$
1,750,000
.....
2027
30.3(b) Grants must be used to develop training and to work with schools to train staff on
30.4nonexclusionary disciplinary practices that maintain the respect, trust, and attention of
30.5students and help keep students in classrooms. These funds may also be used for grant
30.6administration.
30.7(c) Eligible grantees include school districts, charter schools, Tribal charter schools,
30.8intermediate school districts, and cooperative units as defined in Minnesota Statutes, section
30.9123A.24, subdivision 2.
30.10(d) Up to five percent of the appropriation is available for grant administration.
30.11(e) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
30.12    Subd. 24. P-TECH schools. (a) For P-TECH implementation grants under Minnesota
30.13Statutes, section 124D.093, subdivision 5:
30.14
$
791,000
.....
2026
30.15
$
791,000
.....
2027
30.16(b) The amount in paragraph (a) is for a grant to a public-private partnership that includes
30.17Independent School District No. 535, Rochester.
30.18(c) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the department
30.19may retain money from this appropriation for administrative costs under Minnesota Statutes,
30.20section 124D.093, subdivision 5.
30.21(d) This appropriation is available until June 30, 2029.
30.22(e) The department may award start-up and mentoring and technical assistance grants
30.23beginning in fiscal year 2026. Of the amount in fiscal year 2026, at least $500,000 is for a
30.24support grant to a public-private partnership that includes Independent School District No.
30.25535, Rochester. Of the amount in fiscal year 2027, at least $250,000 is for a support grant
30.26to a public-private partnership that includes Independent School District No. 535, Rochester.
30.27    Subd. 25. Paraprofessional training. (a) For compensation associated with paid
30.28orientation and professional development for paraprofessionals under Minnesota Statutes,
30.29section 121A.642:
30.30
$
4,721,000
.....
2026
30.31
$
5,000,000
.....
2027
30.32(b) The 2026 appropriation includes $221,000 for 2025 and $4,500,000 for 2026.
31.1(c) The 2027 appropriation includes $500,000 for 2026 and $4,500,000 for 2027.
31.2    Subd. 26. Recovery program grants. (a) For recovery program grants under Minnesota
31.3Statutes, section 124D.695:
31.4
$
750,000
.....
2026
31.5
$
750,000
.....
2027
31.6(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
31.7    Subd. 27. Sanneh Foundation. (a) For grants to the Sanneh Foundation:
31.8
$
1,500,000
.....
2026
31.9
$
750,000
.....
2027
31.10(b) Up to three percent of the appropriation is available for grant administration.
31.11(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
31.12(d) This is a onetime appropriation.
31.13    Subd. 28. ServeMinnesota program. (a) For funding ServeMinnesota programs under
31.14Minnesota Statutes, sections 124D.37 to 124D.45:
31.15
$
900,000
.....
2026
31.16
$
900,000
.....
2027
31.17(b) A grantee organization may provide health and child care coverage to the dependents
31.18of each participant enrolled in a full-time ServeMinnesota program to the extent such
31.19coverage is not otherwise available.
31.20(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
31.21    Subd. 29. Starbase MN. (a) For a grant to Starbase MN for a rigorous science,
31.22technology, engineering, and math program providing students in grades 4 through 6 with
31.23a multisensory learning experience and a hands-on curriculum in an aerospace environment
31.24using state-of-the-art technology:
31.25
$
500,000
.....
2026
31.26
$
500,000
.....
2027
31.27(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
31.28(c) This is a onetime appropriation.
31.29    Subd. 30. Statewide testing and reporting system. (a) For the statewide testing and
31.30reporting system under Minnesota Statutes, sections 120B.302 and 120B.305:
32.1
$
10,892,000
.....
2026
32.2
$
10,892,000
.....
2027
32.3(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
32.4    Subd. 31. Student organizations. (a) For student organizations:
32.5
$
1,084,000
.....
2026
32.6
$
1,084,000
.....
2027
32.7(b) $68,000 each year is for student organizations serving health occupations (HOSA).
32.8(c) $100,000 each year is for student organizations serving trade and industry occupations
32.9(Skills USA, secondary and postsecondary).
32.10(d) $122,000 each year is for student organizations serving business occupations (BPA,
32.11secondary and postsecondary).
32.12(e) $322,000 each year is for student organizations serving agriculture occupations (FFA,
32.13PAS).
32.14(f) $185,000 each year is for student organizations serving family and consumer science
32.15occupations (FCCLA). Notwithstanding Minnesota Rules, part 3505.1000, subparts 28 and
32.1631, the student organizations serving FCCLA shall continue to serve students younger than
32.17grade 9.
32.18(g) $202,000 each year is for student organizations serving marketing occupations (DECA
32.19and DECA collegiate).
32.20(h) $85,000 each year is for the Minnesota Foundation for Student Organizations. Of
32.21this amount, $30,000 each year must be used for direct support of underserved and special
32.22student populations.
32.23(i) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.

32.24ARTICLE 3
32.25TEACHERS

32.26    Section 1. Minnesota Statutes 2024, section 124D.901, is amended to read:
32.27124D.901 STUDENT SUPPORT PERSONNEL AID.
32.28    Subdivision 1. Definitions. For the purposes of this section, the following terms have
32.29the meanings given:
33.1(1) "new position" means a student support services personnel full-time or part-time
33.2position not under contract by a school district, charter school, or cooperative unit at the
33.3start of the 2022-2023 school year;
33.4(2) "part-time position" means a student support services personnel position less than
33.51.0 full-time equivalent at the start of the 2022-2023 school year; and
33.6(3) "American Rescue Plan Act" means the federal American Rescue Plan Act of 2021,
33.7Public Law 117-2, that awarded funds; and
33.8(4) (3) "student support services personnel" means an individual licensed to serve as a
33.9school counselor, school psychologist, school social worker, school nurse, or chemical
33.10dependency counselor in Minnesota.
33.11    Subd. 2. Purpose. The purpose of student support personnel aid is to:
33.12(1) address shortages of student support services personnel within Minnesota schools;
33.13(2) decrease caseloads for existing student support services personnel to ensure effective
33.14services;
33.15(3) ensure that students receive effective student support services and integrated and
33.16comprehensive services to improve prekindergarten through grade 12 academic, physical,
33.17social, and emotional outcomes supporting career and college readiness and effective school
33.18mental health services;
33.19(4) ensure that student support services personnel serve within the scope and practice
33.20of their training and licensure;
33.21(5) (4) fully integrate learning supports, instruction, assessment, data-based decision
33.22making, and family and community engagement within a comprehensive approach that
33.23facilitates interdisciplinary collaboration; and
33.24(6) (5) improve student health, school safety, and school climate to support academic
33.25success and career and college readiness.
33.26    Subd. 3. Student support personnel aid. (a) The initial student support personnel aid
33.27for a school district equals the greater of the student support personnel allowance times the
33.28adjusted pupil units at the district for the current fiscal year or $40,000. The initial student
33.29support personnel aid for a charter school equals the greater of the student support personnel
33.30allowance times the adjusted pupil units at the charter school for the current fiscal year or
33.31$20,000. Aid under this paragraph must be reserved in a fund balance that, beginning in
34.1fiscal year 2025, may not exceed the greater of the aid entitlement in the prior fiscal year
34.2or the fund balance in the prior fiscal year.
34.3(b) The cooperative student support personnel aid for a school district that is a member
34.4of an intermediate school district or other cooperative unit that serves students equals the
34.5greater of the cooperative student support allowance times the adjusted pupil units at the
34.6district for the current fiscal year or $40,000. If a district is a member of more than one
34.7cooperative unit that serves students, the revenue must be allocated among the cooperative
34.8units. Aid under this paragraph must not exceed actual expenditures.
34.9(c) The student support personnel allowance equals $11.94 for fiscal year 2024, $17.08
34.10for fiscal year 2025, and $48.73 $40 for fiscal year years 2026 and 2027, and $42 for fiscal
34.11year 2028 and later.
34.12(d) The cooperative student support allowance equals $0.60 for fiscal year 2024, $0.85
34.13for fiscal year 2025, and $2.44 for fiscal year 2026 and later.
34.14    Subd. 4. Allowed uses. (a) Aid under this section must be used to hire enhance student
34.15support services, including but not limited to:
34.16(1) increasing new positions for student support services personnel or increase positions;
34.17(2) increasing a current student support services personnel position that is less than 1.0
34.18full-time equivalent to a greater number of service hours or make; or
34.19(3) making permanent a student support services personnel position hired using onetime
34.20resources awarded through the federal Coronavirus Aid Relief and Economic Security Act,
34.21the federal Consolidated Appropriations Act, the federal Division M-Coronavirus Response
34.22and Relief Supplemental Appropriations Act, or the federal American Rescue Plan Act, or
34.23to maintain a position that would otherwise be eliminated.
34.24(b) Cooperative student support personnel aid must be transferred to the intermediate
34.25district or other cooperative unit of which the district is a member and used to hire new
34.26positions for student support services personnel or increase a current position that is less
34.27than 1.0 full-time equivalent to a greater number of service hours or make permanent a
34.28position hired using onetime resources awarded through the American Rescue Plan Act at
34.29the intermediate district or cooperative unit.
34.30(c) If a school district, charter school, or cooperative unit does not receive at least two
34.31applications and is not able to hire a new full-time equivalent position with student support
34.32personnel aid or use the aid as otherwise provided under subdivision 4a, the aid may be
34.33used for contracted services from individuals licensed to serve as a school counselor, school
35.1psychologist, school social worker, school nurse, or chemical dependency counselor in
35.2Minnesota.
35.3(d) In addition to the personnel uses authorized under paragraphs (a) and (c) and
35.4subdivision 4a, a district, charter school, or cooperative unit may use up to $5,000 of student
35.5support personnel aid each year for the following purposes:
35.6(1) to cover the costs of providing training or job-embedded coaching; or
35.7(2) to cover the costs of student support personnel travel among school sites operated
35.8by a single district, charter school, or cooperative unit, or among school sites operated by
35.9a cooperative unit's member districts or a group of charter schools.
35.10    Subd. 4a. Additional uses for a school with declining enrollment upon board
35.11approval. (a) If a school district, charter school, or cooperative unit has declining enrollment
35.12revenue in fiscal year 2025 or a later fiscal year, and is unable to use student support
35.13personnel aid in accordance with subdivision 4, the district, charter school, or cooperative
35.14unit may use student support personnel aid to maintain a student support services personnel
35.15position if the position would otherwise be eliminated due to budgetary concerns.
35.16(b) For purposes of this subdivision, a school district, charter school, or cooperative unit
35.17has declining enrollment for that fiscal year if the school district, charter school, or
35.18cooperative unit reports fewer students on its previous year's fall enrollment report than for
35.19the second previous year's fall enrollment report.
35.20(c) Before a school board may exercise its authority under this subdivision, the school
35.21board must allow for public testimony on the proposal at a regularly scheduled school board
35.22meeting before approving a resolution approving the usage of the student support personnel
35.23aid for this purpose.
35.24    Subd. 5. Report required. By February 1 following any fiscal year in which student
35.25support personnel aid was received, a school district, charter school, or cooperative unit
35.26must submit a written report to the commissioner indicating how the new position affected
35.27two or more of the following measures:
35.28(1) school climate;
35.29(2) student health;
35.30(3) attendance rates;
35.31(4) academic achievement;
35.32(5) career and college readiness; and
36.1(6) postsecondary completion rates.
36.2EFFECTIVE DATE.This section is effective July 1, 2025.

36.3    Sec. 2. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
36.4    Subdivision 1. Department of Education. The sums indicated in this section are
36.5appropriated from the general fund to the Department of Education for the fiscal years
36.6designated.
36.7    Subd. 2. Agricultural educator grants. (a) For agricultural educator grants under Laws
36.82017, First Special Session chapter 5, article 2, section 51:
36.9
$
250,000
.....
2026
36.10
$
250,000
.....
2027
36.11(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
36.12    Subd. 3. Alternative teacher compensation aid. (a) For alternative teacher compensation
36.13aid under Minnesota Statutes, section 122A.415, subdivision 4:
36.14
$
88,717,000
.....
2026
36.15
$
87,942,000
.....
2027
36.16(b) The 2026 appropriation includes $8,814,000 for fiscal year 2025 and $79,903,000
36.17for fiscal year 2026.
36.18(c) The 2027 appropriation includes $8,878,000 for fiscal year 2026 and $79,064,000
36.19for fiscal year 2027.
36.20    Subd. 4. Black Men Teach Twin Cities. (a) For a grant to Black Men Teach Twin Cities
36.21for the purposes listed in paragraph (c):
36.22
$
500,000
.....
2026
36.23
$
500,000
.....
2027
36.24(b) Black Men Teach Twin Cities must use the grant to establish partnerships with public
36.25elementary schools with a goal of increasing the number of black male teachers to 20 percent
36.26of the teachers at each school site. To the extent possible, Black Men Teach Twin Cities
36.27must include sites in greater Minnesota, suburban areas, and urban settings.
36.28(c) The grant money may be used for:
36.29(1) scholarships for aspiring teachers;
36.30(2) student teacher stipends;
37.1(3) mentoring activities;
37.2(4) professional development, with an emphasis on early literacy training, including best
37.3practices associated with the science of reading; and
37.4(5) stipends for housing to allow a teacher to live closer to the teacher's school.
37.5(d) Black Men Teach Twin Cities must provide a detailed report to the chairs and ranking
37.6minority members of the legislative committees with jurisdiction over kindergarten through
37.7grade 12 education and higher education by January 15 of each year following the year of
37.8a grant award describing how the grant money was used. The report must describe the
37.9progress made toward the goal of increasing the number of Black male teachers at each
37.10school site, identify the strategies used to recruit Black teachers, and describe barriers Black
37.11men face in the teaching profession. The report must be filed in accordance with Minnesota
37.12Statutes, section 3.195.
37.13(e) Up to three percent of the appropriation is available for grant administration.
37.14(f) This is a onetime appropriation.
37.15(g) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
37.16    Subd. 5. Coalition to Increase Teachers of Color and American Indian Teachers. (a)
37.17For the Board of Directors of the Minnesota Humanities Center for a grant to the Coalition
37.18to Increase Teachers of Color and American Indian Teachers in Minnesota for nonlobbying
37.19activities and general operating expenses that support the recruitment and retention of
37.20racially and ethnically diverse teachers underrepresented in the state's workforce:
37.21
$
100,000
.....
2026
37.22
$
100,000
.....
2027
37.23(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
37.24(c) This is a onetime appropriation.
37.25    Subd. 6. Come Teach in Minnesota hiring bonuses. (a) For the Come Teach in
37.26Minnesota hiring bonuses program under Minnesota Statutes, section 122A.59:
37.27
$
400,000
.....
2026
37.28
$
400,000
.....
2027
37.29(b) This appropriation is subject to the requirements under Minnesota Statutes, section
37.30122A.59, subdivision 5.
37.31(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
38.1    Subd. 7. Concurrent enrollment teacher training program. (a) For the concurrent
38.2enrollment teacher partnership under Minnesota Statutes, section 122A.76:
38.3
$
375,000
.....
2026
38.4
$
375,000
.....
2027
38.5(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
38.6    Subd. 8. Expanded concurrent enrollment grants. (a) For grants to institutions offering
38.7"Introduction to Teaching" or "Introduction to Education" courses under Minnesota Statutes,
38.8section 124D.09, subdivision 10, paragraph (b):
38.9
$
500,000
.....
2026
38.10
$
500,000
.....
2027
38.11(b) Up to five percent of the grant amount is available for grant administration and
38.12monitoring.
38.13(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
38.14    Subd. 9. Grow Your Own pathways to teacher licensure grants. (a) For grants to
38.15develop, continue, or expand Grow Your Own new teacher programs under Minnesota
38.16Statutes, section 122A.73, to develop a teaching workforce that more closely reflects the
38.17state's increasingly diverse student population and ensure all students have equitable access
38.18to effective and diverse teachers:
38.19
$
31,954,000
.....
2026
38.20
$
31,954,000
.....
2027
38.21(b) This appropriation is subject to the requirements under Minnesota Statutes, section
38.22122A.73, subdivision 5.
38.23    Subd. 10. Special education apprenticeship programs. (a) For grants to intermediate
38.24school districts for registered special education apprenticeship programs:
38.25
$
3,000,000
.....
2026
38.26
$
3,000,000
.....
2027
38.27(b) In each year, the department must award grants of $740,000 each to Intermediate
38.28School Districts Nos. 287, 288, 916, and 917. Grant recipients must use grant money for
38.29registered special education apprenticeship programs. Grant money may be used for:
38.30(1) program oversight and administrative costs incurred by an intermediate school district
38.31and its partner higher education institution;
38.32(2) stipends and tuition, fees, and other direct program costs incurred by apprentices;
39.1(3) stipends for teachers serving as mentors; and
39.2(4) the cost of substitute teachers.
39.3(c) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, up to $40,000
39.4of the appropriation is available for grant administration.
39.5(d) This is a onetime appropriation.
39.6(e) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
39.7    Subd. 11. Special education teacher pathway program. (a) For grants to develop
39.8special education teacher pathways across Minnesota under Minnesota Statutes, section
39.9122A.77:
39.10
$
0
.....
2026
39.11
$
10,000,000
.....
2027
39.12(b) This appropriation is subject to the requirements under Minnesota Statutes, section
39.13122A.77, subdivision 5.
39.14(c) The base for fiscal year 2028 and later is $10,000,000.
39.15(d) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
39.16    Subd. 12. Student support personnel aid. (a) For aid to support schools in addressing
39.17students' social, emotional, and physical health under Minnesota Statutes, section 124D.901:
39.18
$
52,100,000
.....
2026
39.19
$
53,670,000
.....
2027
39.20(b) The 2026 appropriation includes $3,655,000 for fiscal year 2025 and $48,445,000
39.21for fiscal year 2026.
39.22(c) The 2027 appropriation includes $5,382,000 for fiscal year 2026 and $48,288,000
39.23for fiscal year 2027.
39.24    Subd. 13. Student support personnel workforce pathway. (a) For a grant program to
39.25develop a student support personnel workforce pathway focused on increasing school
39.26psychologists, school nurses, school counselors, and school social workers of color and
39.27Indigenous providers, professional respecialization, recruitment, and retention:
39.28
$
5,000,000
.....
2026
39.29
$
5,000,000
.....
2027
39.30(b) Of the amount in paragraph (a), $150,000 each year is for providing support to school
39.31nurses across the state.
40.1(c) To the extent practicable, the pathway grants must be used to support equal numbers
40.2of students pursuing careers as school psychologists, school nurses, school counselors, and
40.3school social workers.
40.4(d) For grants awarded to school psychologists under this subdivision, the following
40.5terms have the meanings given:
40.6(1) "eligible designated trainee" means an individual enrolled in a National Association
40.7of School Psychologists approved or American Psychological Association accredited school
40.8psychology program granting educational specialist certificates or doctoral degrees in school
40.9psychology;
40.10(2) "eligible employment" means a paid position within a school or local education
40.11agency directly related to a training program providing direct or indirect school psychology
40.12services. Direct services include assessment, intervention, prevention, or consultation services
40.13to students or their family members and educational staff. Indirect services include
40.14supervision, research and evaluation, administration, program development, technical
40.15assistance, or professional learning to support direct services; and
40.16(3) "practica" means an educational experience administered and evaluated by a graduate
40.17training program, with university and site supervision provided by appropriately credentialed
40.18school psychologists, to develop trainees' competencies to provide school psychological
40.19services based on the graduate training program's goals and competencies relative to
40.20accreditation and licensure requirements.
40.21(e) Grants awarded to school psychologists must be used for:
40.22(1) providing paid, supervised, and educationally meaningful practica in a public school
40.23setting for an eligible designated trainee enrolled in a qualifying program within the grantee's
40.24institution;
40.25(2) supporting student recruitment and retention to enroll and hire an eligible designated
40.26trainee for paid practica in public school settings; and
40.27(3) oversight of trainee practica and professional development by a qualifying program
40.28to ensure the qualifications and conduct by an eligible designated trainee meet requirements
40.29set forth by the state and accrediting agencies.
40.30(f) Upon successful completion of the graduate training program, grants awarded to
40.31school psychologists must maintain eligible employment within Minnesota for a minimum
40.32period of one-year full-time equivalent for each academic year of paid training under the
40.33grant program.
41.1(g) Up to $150,000 of the appropriation is available for grant administration.
41.2(h) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
41.3    Subd. 14. Teacher residency program. (a) For a teacher residency program that meets
41.4the requirements of Minnesota Rules, part 8705.2100, subpart 2, item D, subitem (5), unit
41.5(g):
41.6
$
3,000,000
.....
2026
41.7
$
3,000,000
.....
2027
41.8(b) Up to three percent of the appropriation is available for grant administration.
41.9(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.

41.10    Sec. 3. APPROPRIATIONS; PROFESSIONAL EDUCATOR LICENSING AND
41.11STANDARDS BOARD.
41.12    Subdivision 1. Professional Educator Licensing and Standards Board. The sums
41.13indicated in this section are appropriated from the general fund to the Professional Educator
41.14Licensing and Standards Board for the fiscal years designated.
41.15    Subd. 2. Alternative pathways support position. (a) To fund a position at the
41.16Professional Educator Licensing and Standards Board to support candidates through
41.17alternative pathway programs, including the licensure via portfolio process, and to support
41.18districts, charter schools, and educational cooperatives to become alternative preparation
41.19providers:
41.20
$
150,000
.....
2026
41.21
$
150,000
.....
2027
41.22(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
41.23    Subd. 3. Educator tuition assistance program. (a) For the educator tuition assistance
41.24program under Minnesota Statutes, section 122A.635:
41.25
$
5,440,000
.....
2026
41.26
$
5,440,000
.....
2027
41.27(b) The board may retain up to $100,000 of the appropriation to monitor and administer
41.28the grant program.
41.29(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
41.30    Subd. 4. Heritage language and culture teachers. (a) To support an additional licensure
41.31pathway program for heritage language and culture teachers under Minnesota Statutes,
42.1section 122A.631, including funding for a portfolio liaison and funding for substitute teachers
42.2on meeting days, portfolio fees, licensure fees, and licensure exam fees for 50 program
42.3participants:
42.4
$
208,000
.....
2026
42.5
$
208,000
.....
2027
42.6(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
42.7    Subd. 5. Licensure via portfolio online platform. (a) To complete the licensure via
42.8portfolio online platform to streamline the portfolio submission and review process:
42.9
$
150,000
.....
2026
42.10
$
150,000
.....
2027
42.11(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
42.12    Subd. 6. Mentoring, induction, and retention incentive program grants for teachers
42.13of color. (a) To develop and expand mentoring, induction, and retention programs designed
42.14for teachers of color or American Indian teachers under Minnesota Statutes, section 122A.70:
42.15
$
4,500,000
.....
2026
42.16
$
4,500,000
.....
2027
42.17(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
42.18(c) Of the amounts in paragraph (a), at least $3,500,000 each fiscal year is for grants to
42.19develop and expand mentoring, induction, and retention programs designed for teachers of
42.20color or American Indian teachers.
42.21(d) The board may retain up to three percent of the appropriation amount to monitor and
42.22administer the grant program.
42.23    Subd. 7. Pathway preparation grants. (a) For grants to support teachers holding a Tier
42.241 or Tier 2 license who are seeking a Tier 3 or Tier 4 license:
42.25
$
400,000
.....
2026
42.26
$
400,000
.....
2027
42.27(b) The following are eligible for grants under this subdivision:
42.28(1) school districts;
42.29(2) charter schools;
42.30(3) service cooperatives; and
43.1(4) partnerships between one or more teacher preparation providers, school districts, or
43.2charter schools.
43.3(c) Grant funds must be used to support teachers holding a Tier 1 or Tier 2 license and
43.4seeking a Tier 3 or Tier 4 license through completion of a teacher preparation program or
43.5the licensure via portfolio process. A grant recipient must provide teachers holding a Tier
43.61 or Tier 2 license with professional development, mentorship, and coursework aligned to
43.7state standards for teacher licensure.
43.8(d) The Professional Educator Licensing and Standards Board may collaborate with the
43.9Department of Education and the Office of Higher Education to administer the grant program.
43.10(e) The board may retain up to three percent of the appropriation amount to monitor and
43.11administer the grant.
43.12(f) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
43.13    Subd. 8. Teacher recruitment marketing campaign. (a) To develop two contracts to
43.14develop and implement an outreach and marketing campaign under this subdivision:
43.15
$
500,000
.....
2026
43.16
$
500,000
.....
2027
43.17(b) The Professional Educator Licensing and Standards Board must issue a request for
43.18proposals to develop and implement an outreach and marketing campaign to elevate the
43.19profession and recruit teachers, especially teachers of color and American Indian teachers.
43.20Outreach efforts may include and support current and former Teacher of the Year finalists
43.21interested in being recruitment fellows to encourage prospective educators throughout the
43.22state. The board may renew a grant contract with a prior recipient if it determines sufficient
43.23deliverables were achieved and the plans of the firm or organization are more promising
43.24than proposals from other entities.
43.25(c) The outreach and marketing campaign must focus on increasing interest in teaching
43.26in Minnesota public schools for the following individuals:
43.27(1) high school and college students of color or American Indian students who have not
43.28chosen a career path; or
43.29(2) adults from racial or ethnic groups underrepresented in the teacher workforce who
43.30may be seeking to change careers.
43.31(d) The board must award two $250,000 grants each year to firms or organizations that
43.32demonstrate capacity to reach wide and varied audiences of prospective teachers based on
44.1a work plan with quarterly deliverables. Preferences may be given to firms or organizations
44.2that are led by people of color and that have people of color working on the campaign with
44.3a proven record of success. The grant recipients must recognize current pathways or programs
44.4to become a teacher and must partner with educators, schools, institutions, and racially
44.5diverse communities. The grant recipients are encouraged to provide in-kind contributions
44.6or seek funds from nonstate sources to supplement the grant award.
44.7(e) The board may use no more than three percent of the appropriation amount to
44.8administer the program under this subdivision, and may have an interagency agreement
44.9with the Department of Education including transfer of funds to help administer the program.
44.10(f) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.

44.11    Sec. 4. REVISOR INSTRUCTION.
44.12(a) The revisor of statutes must change the term "pipeline" to "pathway" wherever it
44.13appears in Minnesota Statutes, section 122A.77.
44.14(b) The revisor of statutes must change the term "collaborative urban and greater
44.15Minnesota educators of color grant program" to "educator tuition assistance program"
44.16wherever it appears in Minnesota Statutes, section 122A.635.

44.17ARTICLE 4
44.18AMERICAN INDIAN EDUCATION

44.19    Section 1. Minnesota Statutes 2024, section 121A.041, subdivision 3, is amended to read:
44.20    Subd. 3. Exemption. A public school may seek an exemption to subdivision 2 by
44.21submitting a request in writing to all 11 federally recognized Tribal Nations in Minnesota
44.22and to the Tribal Nations Education Committee by September 1, 2023. The exemption is
44.23denied if any of the 11 Tribal Nations or the Tribal Nations Education Committee oppose
44.24the exemption by December 15, 2023 requesting a letter of consent from the federally
44.25recognized Tribal Nation in Minnesota that is located nearest to the public school. A public
44.26school whose request for an exemption consent from a Tribal Nation is denied must comply
44.27with subdivision 2 by September 1, 2026.
44.28EFFECTIVE DATE.This section is effective the day following final enactment.

44.29    Sec. 2. Minnesota Statutes 2024, section 122A.63, subdivision 9, is amended to read:
44.30    Subd. 9. Eligible programming. (a) The grantee institutions may provide scholarships
44.31to eligible students progressing toward educational goals in a prekindergarten through grade
45.112 educational setting in any area of teacher licensure, including an associate's, bachelor's,
45.2master's, or doctoral degree in the following:
45.3(1) any educational certification necessary for employment;
45.4(2) early childhood family education or prekindergarten licensure;
45.5(3) elementary and secondary education;
45.6(4) school administration; or
45.7(5) any educational program that provides services to American Indian students in
45.8prekindergarten through grade 12.
45.9(b) Scholarships may be used to cover an eligible student's cost of attendance under
45.10section 136A.126, subdivision 3.
45.11(c) For purposes of recruitment, the grantees or their contracted partner institutions must
45.12agree to work with their respective organizations to hire an American Indian work-study
45.13student or other American Indian staff to conduct initial information queries and to contact
45.14persons working in schools to provide programming regarding education professions to
45.15high school students who may be interested in education as a profession.
45.16(d) At least 80 percent of the grants awarded under this section must be used for student
45.17scholarships. No more than 20 percent of the grants awarded under this section may be used
45.18for recruitment or administration of the student scholarships.

45.19    Sec. 3. APPROPRIATIONS.
45.20    Subdivision 1. Department of Education. The sums indicated in this section are
45.21appropriated from the general fund to the Department of Education for the fiscal years
45.22designated.
45.23    Subd. 2. American Indian education aid. (a) For American Indian education aid under
45.24Minnesota Statutes, section 124D.81, subdivision 2a:
45.25
$
20,646,000
.....
2026
45.26
$
21,548,000
.....
2027
45.27(b) The 2026 appropriation includes $1,973,000 for 2025 and $18,673,000 for 2026.
45.28(c) The 2027 appropriation includes $2,074,000 for 2026 and $19,474,000 for 2027.
45.29    Subd. 3. Minnesota Indian teacher training program grants. (a) For joint grants to
45.30assist people who are American Indian to become teachers under Minnesota Statutes, section
45.31122A.63:
46.1
$
600,000
.....
2026
46.2
$
600,000
.....
2027
46.3(b) This appropriation is subject to the requirements under Minnesota Statutes, section
46.4122A.63, subdivision 10.
46.5    Subd. 4. Native language revitalization grants to schools. (a) For grants to school
46.6districts, charter schools, and Tribal contract schools to offer language instruction in Dakota
46.7and Anishinaabe languages or another language indigenous to the United States or Canada:
46.8
$
7,500,000
.....
2026
46.9
$
7,500,000
.....
2027
46.10(b) Grant amounts are to be determined based upon the number of schools within a
46.11district implementing language courses. Eligible expenses include costs for teachers, program
46.12supplies, and curricular resources.
46.13(c) Up to five percent of the grant amount is available for grant administration and
46.14monitoring.
46.15(d) Up to $300,000 each year is for administrative and programmatic capacity at the
46.16Department of Education.
46.17(e) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
46.18    Subd. 5. Tribal contract school aid. (a) For Tribal contract school aid under Minnesota
46.19Statutes, section 124D.83:
46.20
$
2,313,000
.....
2026
46.21
$
2,554,000
.....
2027
46.22(b) The 2026 appropriation includes $221,000 for 2025 and $2,092,000 for 2026.
46.23(c) The 2027 appropriation includes $232,000 for 2026 and $2,322,000 for 2027.
46.24    Subd. 6. Early childhood programs at Tribal contract schools. (a) For early childhood
46.25family education programs at Tribal contract schools under Minnesota Statutes, section
46.26124D.83, subdivision 4:
46.27
$
68,000
.....
2026
46.28
$
68,000
.....
2027
46.29(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
46.30    Subd. 7. Mascot replacement assistance. (a) For assistance to public schools seeking
46.31to comply with Minnesota Statutes, section 121A.041:
47.1
$
2,000,000
.....
2026
47.2(b) A public school may apply in the form and manner determined by the commissioner
47.3for reimbursement of costs incurred to meet the requirements of Minnesota Statutes, section
47.4121A.041, subdivision 2, including the costs of replacing a prohibited name, symbol, or
47.5image on uniforms, signs, paintings, equipment, gym floors, websites, and other school
47.6property, including supplies and other building surfaces.
47.7(c) The commissioner must establish procedures to allow for reimbursement of costs
47.8incurred by a public school after June 30, 2024. Subject to the availability of funding, the
47.9commissioner may reimburse up to 100 percent of the costs under this paragraph.
47.10(d) The commissioner must establish procedures to ensure that any costs reimbursed
47.11under this subdivision are excluded from other school revenue calculations.
47.12(e) Any balance in fiscal year 2026 is available in fiscal year 2027.
47.13(f) The base for fiscal year 2028 is $2,000,000. The base for fiscal year 2029 is $0.

47.14ARTICLE 5
47.15SPECIAL EDUCATION

47.16    Section 1. Minnesota Statutes 2024, section 123B.92, subdivision 1, is amended to read:
47.17    Subdivision 1. Definitions. For purposes of this section and section 125A.76, the terms
47.18defined in this subdivision have the meanings given to them.
47.19    (a) "Actual expenditure per pupil transported in the regular and excess transportation
47.20categories" means the quotient obtained by dividing:
47.21    (1) the sum of:
47.22    (i) all expenditures for transportation in the regular category, as defined in paragraph
47.23(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
47.24    (ii) an amount equal to one year's depreciation on the district's school bus fleet and
47.25mobile units computed on a straight line basis at the rate of 15 percent per year for districts
47.26operating a program under section 124D.128 for grades 1 to 12 for all students in the district
47.27and 12-1/2 percent per year for other districts of the cost of the fleet, plus
47.28    (iii) an amount equal to one year's depreciation on the district's type III vehicles, as
47.29defined in section 169.011, subdivision 71, which must be used a majority of the time for
47.30pupil transportation purposes, computed on a straight line basis at the rate of 20 percent per
47.31year of the cost of the type three school buses by:
48.1    (2) the number of pupils eligible for transportation in the regular category, as defined
48.2in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause
48.3(2).
48.4    (b) "Transportation category" means a category of transportation service provided to
48.5pupils as follows:
48.6    (1) "Regular transportation" is:
48.7    (i) transportation to and from school during the regular school year for resident elementary
48.8pupils residing one mile or more from the public or nonpublic school they attend, and
48.9resident secondary pupils residing two miles or more from the public or nonpublic school
48.10they attend, excluding desegregation transportation and noon kindergarten transportation;
48.11but with respect to transportation of pupils to and from nonpublic schools, only to the extent
48.12permitted by sections 123B.84 to 123B.87;
48.13    (ii) transportation of resident pupils to and from language immersion programs;
48.14    (iii) transportation of a pupil who is a custodial parent and that pupil's child between the
48.15pupil's home and the child care provider and between the provider and the school, if the
48.16home and provider are within the attendance area of the school;
48.17    (iv) transportation to and from or board and lodging in another district, of resident pupils
48.18of a district without a secondary school;
48.19    (v) transportation to and from school during the regular school year required under
48.20subdivision 3 for nonresident elementary pupils when the distance from the attendance area
48.21border to the public school is one mile or more, and for nonresident secondary pupils when
48.22the distance from the attendance area border to the public school is two miles or more,
48.23excluding desegregation transportation and noon kindergarten transportation; and
48.24(vi) transportation of pregnant or parenting pupils to and from a program that was
48.25established on or before January 1, 2018, or that is in operation on or after July 1, 2021,
48.26that provides:
48.27(A) academic instruction;
48.28(B) at least four hours per week of parenting instruction; and
48.29    (C) high-quality child care on site during the education day with the capacity to serve
48.30all children of enrolled pupils.
48.31    For the purposes of this paragraph, a district may designate a licensed day care facility,
48.32school day care facility, respite care facility, the residence of a relative, or the residence of
49.1a person or other location chosen by the pupil's parent or guardian, or an after-school program
49.2for children operated by a political subdivision of the state, as the home of a pupil for part
49.3or all of the day, if requested by the pupil's parent or guardian, and if that facility, residence,
49.4or program is within the attendance area of the school the pupil attends.
49.5    (2) "Excess transportation" is:
49.6    (i) transportation to and from school during the regular school year for resident secondary
49.7pupils residing at least one mile but less than two miles from the public or nonpublic school
49.8they attend, and transportation to and from school for resident pupils residing less than one
49.9mile from school who are transported because of full-service school zones, extraordinary
49.10traffic, drug, or crime hazards; and
49.11    (ii) transportation to and from school during the regular school year required under
49.12subdivision 3 for nonresident secondary pupils when the distance from the attendance area
49.13border to the school is at least one mile but less than two miles from the public school they
49.14attend, and for nonresident pupils when the distance from the attendance area border to the
49.15school is less than one mile from the school and who are transported because of full-service
49.16school zones, extraordinary traffic, drug, or crime hazards.
49.17    (3) "Desegregation transportation" is transportation within and outside of the district
49.18during the regular school year of pupils to and from schools located outside their normal
49.19attendance areas under a plan for desegregation mandated by the commissioner or under
49.20court order.
49.21    (4) "Transportation services for pupils with disabilities" is:
49.22    (i) transportation of pupils with disabilities who cannot be transported on a regular school
49.23bus between home or a respite care facility and school;
49.24    (ii) necessary transportation of pupils with disabilities from home or from school to
49.25other buildings, including centers such as developmental achievement centers, hospitals,
49.26and treatment centers where special instruction or services required by sections 125A.03 to
49.27125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district
49.28where services are provided;
49.29    (iii) necessary transportation for resident pupils with disabilities required by sections
49.30125A.12, and 125A.26 to 125A.48;
49.31    (iv) board and lodging for pupils with disabilities in a district maintaining special classes;
49.32    (v) transportation from one educational facility to another within the district for resident
49.33pupils enrolled on a shared-time basis in educational programs, and necessary transportation
50.1required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils with disabilities
50.2who are provided special instruction and services on a shared-time basis or if resident pupils
50.3are not transported, the costs of necessary travel between public and private schools or
50.4neutral instructional sites by essential personnel employed by the district's program for
50.5children with a disability;
50.6    (vi) transportation for resident pupils with disabilities to and from board and lodging
50.7facilities when the pupil is boarded and lodged for educational purposes;
50.8(vii) transportation of pupils for a curricular field trip activity on a school bus equipped
50.9with a power lift when the power lift is required by a student's disability or section 504 plan;
50.10and
50.11(viii) services described in items (i) to (vii), when provided for pupils with disabilities
50.12in conjunction with a summer instructional program that relates to the pupil's individualized
50.13education program or in conjunction with a learning year program established under section
50.14124D.128; and
50.15(ix) the amounts described in paragraph (d).
50.16    For purposes of computing special education initial aid under section 125A.76, the cost
50.17of providing transportation for children with disabilities includes (A) the additional cost of
50.18transporting a student in a shelter care facility as defined in section 260C.007, subdivision
50.1930, a student placed in a family foster home as defined in section 260C.007, subdivision
50.2016b, a homeless student in another district to the school of origin, or a formerly homeless
50.21student from a permanent home in another district to the school of origin but only through
50.22the end of the academic year; and (B) depreciation on district-owned school buses purchased
50.23after July 1, 2005, and used primarily for transportation of pupils with disabilities, calculated
50.24according to paragraph (a), items (ii) and (iii). Depreciation costs included in the disabled
50.25transportation category must be excluded in calculating the actual expenditure per pupil
50.26transported in the regular and excess transportation categories according to paragraph (a).
50.27For purposes of subitem (A), a school district may transport a child who does not have a
50.28school of origin to the same school attended by that child's sibling, if the siblings are homeless
50.29or in a shelter care facility.
50.30    (5) "Nonpublic nonregular transportation" is:
50.31    (i) transportation from one educational facility to another within the district for resident
50.32pupils enrolled on a shared-time basis in educational programs, excluding transportation
50.33for nonpublic pupils with disabilities under clause (4);
51.1    (ii) transportation within district boundaries between a nonpublic school and a public
51.2school or a neutral site for nonpublic school pupils who are provided pupil support services
51.3pursuant to section 123B.44; and
51.4    (iii) late transportation home from school or between schools within a district for
51.5nonpublic school pupils involved in after-school activities.
51.6    (c) "Mobile unit" means a vehicle or trailer designed to provide facilities for educational
51.7programs and services, including diagnostic testing, guidance and counseling services, and
51.8health services. A mobile unit located off nonpublic school premises is a neutral site as
51.9defined in section 123B.41, subdivision 13.
51.10(d) For purposes of computing special education initial aid under section 125A.76, the
51.11cost of providing transportation for children with disabilities includes:
51.12(1) the additional cost of transporting:
51.13(i) a student in a shelter care facility as defined in section 260C.007, subdivision 30;
51.14(ii) a student placed in a family foster home as defined in section 260C.007, subdivision
51.1516b;
51.16(iii) a homeless student in another district to the school of origin; or
51.17(iv) a formerly homeless student from a permanent home in another district to the school
51.18of origin but only through the end of the academic year; and
51.19(2) depreciation on district-owned school buses purchased after July 1, 2005, and used
51.20primarily for transportation of pupils with disabilities, calculated according to paragraph
51.21(a), clause (1), items (ii) and (iii). Depreciation costs included in the disabled transportation
51.22category must be excluded in calculating the actual expenditure per pupil transported in the
51.23regular and excess transportation categories according to paragraph (a).
51.24For purposes of clause (1), a school district may transport a child who does not have a school
51.25of origin to the same school attended by that child's sibling, if the siblings are homeless or
51.26in a shelter care facility.
51.27EFFECTIVE DATE.This section is effective for fiscal year 2026 and later.

51.28    Sec. 2. Minnesota Statutes 2024, section 125A.76, subdivision 2a, is amended to read:
51.29    Subd. 2a. Special education initial aid. For fiscal year 2021 and later, a district's special
51.30education initial aid equals the sum of:
52.1(1) the least of 62 percent of the district's old formula special education expenditures
52.2for the prior fiscal year, excluding pupil transportation expenditures, 50 percent of the
52.3district's nonfederal special education expenditures for the prior year, excluding pupil
52.4transportation expenditures, or 56 percent of the product of the sum of the following amounts,
52.5computed using prior fiscal year data, and the program growth factor:
52.6(i) the product of the district's average daily membership served and the sum of:
52.7(A) $460; plus
52.8(B) $405 times the ratio of the sum of the number of pupils enrolled on October 1 who
52.9are eligible to receive free meals plus one-half of the pupils enrolled on October 1 who are
52.10eligible to receive reduced-price meals to the total October 1 enrollment; plus
52.11(C) .008 times the district's average daily membership served; plus
52.12(ii) $13,300 times the December 1 child count for the primary disability areas of autism
52.13spectrum disorders, developmental delay, and severely multiply impaired; plus
52.14(iii) $19,200 times the December 1 child count for the primary disability areas of deaf
52.15and hard-of-hearing and emotional or behavioral disorders; plus
52.16(iv) $25,200 times the December 1 child count for the primary disability areas of
52.17developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
52.18physically impaired, visually impaired, and deafblind; plus
52.19(2) the cost of providing transportation services for children with disabilities under
52.20section 123B.92, subdivision 1, paragraph (b), clause (4), items (i) to (viii), reimbursed at
52.2195 percent for fiscal year 2026 and later; and
52.22(3) the cost of providing transportation services for children with disabilities under
52.23section 123B.92, subdivision 1, paragraph (b), clause (4), item (ix), reimbursed at 100
52.24percent for fiscal year 2026 and later.
52.25EFFECTIVE DATE.This section is effective for revenue for fiscal year 2026 and later.

52.26    Sec. 3. SPECIAL EDUCATION CROSS SUBSIDY REDUCTION AID FACTOR
52.27ADJUSTMENT.
52.28(a) Notwithstanding any law to the contrary, the appropriations in section 4, subdivision
52.294 must not be reduced for savings attributable to the interaction with the school
52.30unemployment aid under this act.
53.1(b) The commissioner of education must distribute any amounts identified under
53.2paragraph (a) by increasing the special education cross subsidy aid factor under Minnesota
53.3Statutes, section 125A.76, subdivision 2e, paragraph (b) as necessary for fiscal years 2026,
53.42027, and 2028.

53.5    Sec. 4. APPROPRIATIONS.
53.6    Subdivision 1. Department of Education. The sums indicated in this section are
53.7appropriated from the general fund to the Department of Education for the fiscal years
53.8designated.
53.9    Subd. 2. Aid for children with disabilities. (a) For aid under Minnesota Statutes, section
53.10125A.75, subdivision 3, for children with disabilities placed in residential facilities within
53.11district boundaries for whom no district of residence can be determined:
53.12
$
2,240,000
.....
2026
53.13
$
2,570,000
.....
2027
53.14(b) If the appropriation for either year is insufficient, the appropriation for the other year
53.15is available.
53.16    Subd. 3. Court-placed special education revenue. For reimbursing serving school
53.17districts for unreimbursed eligible expenditures attributable to children placed in the serving
53.18school district by court action under Minnesota Statutes, section 125A.79, subdivision 4:
53.19
$
41,000
.....
2026
53.20
$
42,000
.....
2027
53.21    Subd. 4. Special education; regular. (a) For special education aid under Minnesota
53.22Statutes, section 125A.76:
53.23
$
2,775,492,000
.....
2026
53.24
$
3,031,424,000
.....
2027
53.25(b) The 2026 appropriation includes $322,670,000 for 2025 and $2,452,822,000 for
53.262026.
53.27(c) The 2027 appropriation includes $345,733,000 for 2026 and $2,685,691,000 for
53.282027.
53.29    Subd. 5. Special education out-of-state tuition. For special education out-of-state
53.30tuition under Minnesota Statutes, section 125A.79, subdivision 8:
53.31
$
250,000
.....
2026
53.32
$
250,000
.....
2027
54.1    Subd. 6. Special education separate sites and programs. (a) For aid for special
54.2education separate sites and programs under Minnesota Statutes, section 125A.81, subdivision
54.34:
54.4
$
4,470,000
.....
2026
54.5
$
4,695,000
.....
2027
54.6(b) The 2026 appropriation includes $427,000 for 2025 and $4,043,000 for 2026.
54.7(c) The 2027 appropriation includes $449,000 for 2026 and $4,246,000 for 2027.
54.8    Subd. 7. Travel for home-based services. (a) For aid for teacher travel for home-based
54.9services under Minnesota Statutes, section 125A.75, subdivision 1:
54.10
$
488,000
.....
2026
54.11
$
538,000
.....
2027
54.12(b) The 2026 appropriation includes $44,000 for 2025 and $444,000 for 2026.
54.13(c) The 2027 appropriation includes $49,000 for 2026 and $489,000 for 2027.

54.14ARTICLE 6
54.15FACILITIES

54.16    Section 1. Minnesota Statutes 2024, section 123B.595, subdivision 1, is amended to read:
54.17    Subdivision 1. Long-term facilities maintenance revenue. (a) Long-term facilities
54.18maintenance revenue equals the greater of (1) the sum of (i) $380 times the district's adjusted
54.19pupil units times the lesser of one or the ratio of the district's average building age to 35
54.20years, plus (ii) the cost approved by the commissioner for indoor air quality, fire alarm and
54.21suppression, and asbestos abatement projects under section 123B.57, subdivision 6, with
54.22an estimated cost of $100,000 or more per site and, beginning in fiscal year 2028, roof repair
54.23and replacement with an estimated cost of $100,000 or more per site, plus (iii) for a school
54.24district with an approved voluntary prekindergarten program under section 142D.08, the
54.25cost approved by the commissioner for remodeling existing instructional space to
54.26accommodate prekindergarten instruction, or (2) the sum of (i) the amount the district would
54.27have qualified for under Minnesota Statutes 2014, section 123B.57, Minnesota Statutes
54.282014, section 123B.59, and Minnesota Statutes 2014, section 123B.591, and (ii) for a school
54.29district with an approved voluntary prekindergarten program under section 142D.08, the
54.30cost approved by the commissioner for remodeling existing instructional space to
54.31accommodate prekindergarten instruction.
55.1(b) Notwithstanding paragraph (a), a school district that qualified for eligibility under
55.2Minnesota Statutes 2014, section 123B.59, subdivision 1, paragraph (a), for fiscal year 2010
55.3remains eligible for funding under this section as a district that would have qualified for
55.4eligibility under Minnesota Statutes 2014, section 123B.59, subdivision 1, paragraph (a),
55.5for fiscal year 2017 and later.

55.6    Sec. 2. Minnesota Statutes 2024, section 123B.595, subdivision 4, is amended to read:
55.7    Subd. 4. Facilities plans. (a) To qualify for revenue under this section, a school district
55.8or intermediate district, not including a charter school, must have a ten-year facility plan
55.9adopted by the school board and approved by the commissioner. The plan must include
55.10provisions for implementing a health and safety program that complies with health, safety,
55.11and environmental regulations and best practices, including indoor air quality management
55.12and remediation of lead hazards. For fiscal year 2028 and later, the plan must address the
55.13maintenance and repair schedule for each school's roof for which funding is requested. For
55.14planning purposes, the plan must also address provisions for providing a gender-neutral
55.15single-user restroom at each school site.
55.16(b) The district must annually update the plan, submit the plan to the commissioner for
55.17approval by July 31, and indicate whether the district will issue bonds to finance the plan
55.18or levy for the costs.
55.19    (c) For school districts issuing bonds to finance the plan, the plan must include a debt
55.20service schedule demonstrating that the debt service revenue required to pay the principal
55.21and interest on the bonds each year will not exceed the projected long-term facilities revenue
55.22for that year.

55.23    Sec. 3. Minnesota Statutes 2024, section 123B.595, subdivision 8, is amended to read:
55.24    Subd. 8. Long-term facilities maintenance equalized levy. (a) A district's long-term
55.25facilities maintenance equalized levy equals the district's long-term facilities maintenance
55.26equalization revenue minus the greater of:
55.27(1) the lesser of the district's long-term facilities maintenance equalization revenue or
55.28the amount of aid the district received for fiscal year 2015 under Minnesota Statutes 2014,
55.29section 123B.59, subdivision 6; or
55.30(2) the district's long-term facilities maintenance equalization revenue times the greater
55.31of (i) zero, or (ii) one minus the ratio of its adjusted net tax capacity per adjusted pupil unit
55.32in the year preceding the year the levy is certified to 123 percent of the product of the
56.1equalizing factor and the state average adjusted net tax capacity per adjusted pupil unit for
56.2all school districts in the year preceding the year the levy is certified. The equalizing factor
56.3equals 123 percent for fiscal years 2026 and 2027, and 127 percent for fiscal year 2028 and
56.4later.
56.5(b) For purposes of this subdivision, "adjusted net tax capacity" means the value described
56.6in section 126C.01, subdivision 2, paragraph (b).

56.7    Sec. 4. Minnesota Statutes 2024, section 123B.595, subdivision 10, is amended to read:
56.8    Subd. 10. Allowed uses for long-term facilities maintenance revenue. (a) A district
56.9may use revenue under this section for any of the following:
56.10(1) deferred capital expenditures and maintenance projects necessary to prevent further
56.11erosion of facilities and, beginning in fiscal year 2028, repair and replacement of roofs;
56.12(2) increasing accessibility of school facilities;
56.13(3) health and safety capital projects under section 123B.57;
56.14(4) remodeling or constructing a gender-neutral single-user restroom at each school site;
56.15or
56.16(5) by board resolution, to transfer money from the general fund reserve for long-term
56.17facilities maintenance to the debt redemption fund to pay the amounts needed to meet, when
56.18due, principal and interest on general obligation bonds issued under subdivision 5.
56.19(b) A charter school may use revenue under this section for any purpose related to the
56.20school.

56.21    Sec. 5. Minnesota Statutes 2024, section 123B.71, subdivision 8, is amended to read:
56.22    Subd. 8. Review and comment. A school district, a special education cooperative, or
56.23a cooperative unit of government, as defined in section 123A.24, subdivision 2, must not
56.24enter into an installment contract for purchase or a lease agreement, hold a referendum for
56.25bonds, nor solicit bids for new construction, expansion, or remodeling of an educational
56.26facility that requires an expenditure in excess of $500,000 per school site if it has a capital
56.27loan outstanding, or $2,000,000 per school site if it does not have a capital loan outstanding,
56.28prior to review and comment by the commissioner. New construction, expansion, or
56.29remodeling of an educational facility funded only with general education revenue, lease
56.30levy proceeds from an additional capital expenditure levy under section 126C.40, subdivision
56.311
, capital facilities bond proceeds, or long-term facilities maintenance revenue is exempt
57.1from this provision. A capital project under section 123B.63 addressing only technology is
57.2exempt from this provision if the district submits a school board resolution stating that funds
57.3approved by the voters will be used only as authorized in section 126C.10, subdivision 14.
57.4A school board shall not separate portions of a single project into components to avoid the
57.5requirements of this subdivision.
57.6EFFECTIVE DATE.This section is effective for taxes payable in 2026 and later.

57.7    Sec. 6. Minnesota Statutes 2024, section 126C.40, subdivision 1, is amended to read:
57.8    Subdivision 1. To lease building or land. (a) When an independent or a special school
57.9district or a group of independent or special school districts finds it economically
57.10advantageous to rent or lease a building or land for any instructional purposes or for school
57.11storage or furniture repair, and it determines that the operating capital revenue authorized
57.12under section 126C.10, subdivision 13, is insufficient for this purpose, it may apply to the
57.13commissioner for permission to make an additional capital expenditure levy for this purpose.
57.14An application for permission to levy under this subdivision must contain financial
57.15justification for the proposed levy, the terms and conditions of the proposed lease, and a
57.16description of the space to be leased and its proposed use. Projects funded under this
57.17subdivision that require an expenditure in excess of $500,000 per school site if the school
57.18district has a capital loan outstanding, or $2,000,000 per school site if the school district
57.19does not have a capital loan outstanding, are subject to review and comment under section
57.20123B.71, subdivision 8, in the form and manner prescribed by the commissioner.
57.21    (b) The criteria for approval of applications to levy under this subdivision must be
57.22annually prescribed by the commissioner, and must include but are not limited to: the
57.23reasonableness of the price, the appropriateness of the space to the proposed activity, the
57.24feasibility of transporting pupils to the leased building or land, conformity of the lease to
57.25the laws and rules of the state of Minnesota, and the appropriateness of the proposed lease
57.26to the space needs and of the district, the financial condition of the district, and a review of
57.27the statutory operating debt percentage applicable to the district. The commissioner must
57.28not authorize a levy under this subdivision in an amount greater than the cost to the district
57.29of renting or leasing a building or land for approved purposes. The proceeds of this levy
57.30must not be used for custodial or other maintenance services operating costs. A district may
57.31not levy under this subdivision for the purpose of leasing or renting a district-owned building
57.32or site to itself.
57.33    (c) For agreements finalized after July 1, 1997, a district may not levy under this
57.34subdivision for the purpose of leasing: (1) a newly constructed building used primarily for
58.1regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
58.2building addition or additions used primarily for regular kindergarten, elementary, or
58.3secondary instruction that contains more than 20 percent of the square footage of the
58.4previously existing building.
58.5    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
58.6purpose of leasing or renting a district-owned building or site to itself only if the amount is
58.7needed by the district to make payments required by a lease purchase agreement, installment
58.8purchase agreement, or other deferred payments agreement authorized by law, and the levy
58.9meets the requirements of paragraph (c). A levy authorized for a district by the commissioner
58.10under this paragraph may be in the amount needed by the district to make payments required
58.11by a lease purchase agreement, installment purchase agreement, or other deferred payments
58.12agreement authorized by law, provided that any agreement include a provision giving the
58.13school districts the right to terminate the agreement annually without penalty.
58.14    (e) The total levy under this subdivision for a district for any year must not exceed $212
58.15times the adjusted pupil units for the fiscal year to which the levy is attributable.
58.16    (f) For agreements for which a review and comment under section 123B.71, subdivision
58.178, have been submitted to the Department of Education after April 1, 1998, the term
58.18"instructional purpose" as used in this subdivision excludes expenditures on stadiums.
58.19    (g) The commissioner of education may authorize a school district to exceed the limit
58.20in paragraph (e) if the school district petitions the commissioner for approval. The
58.21commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
58.22for not more than five years if the district meets the following criteria:
58.23    (1) the school district has been experiencing pupil enrollment growth in the preceding
58.24five years;
58.25    (2) the purpose of the increased levy is in the long-term public interest;
58.26    (3) the purpose of the increased levy promotes colocation of government services; and
58.27    (4) the purpose of the increased levy is in the long-term interest of the district by avoiding
58.28over construction of school facilities.
58.29    (h) A school district that is a member of an intermediate school district or other
58.30cooperative unit under section 123A.24, subdivision 2, or a joint powers district under
58.31section 471.59 may include in its authority under this section the costs associated with leases
58.32of administrative and classroom space for programs of the intermediate school district or
58.33other cooperative unit under section 123A.24, subdivision 2, or joint powers district under
59.1section 471.59. This authority must not exceed $65 times the adjusted pupil units of the
59.2member districts. This authority is in addition to any other authority authorized under this
59.3section. The intermediate school district, other cooperative unit, or joint powers district may
59.4specify which member districts will levy for lease costs under this paragraph.
59.5(i) Notwithstanding paragraph (a), a district may levy under this subdivision for the
59.6purpose of leasing administrative space if the district can demonstrate to the satisfaction of
59.7the commissioner that the lease cost for the administrative space is no greater than the lease
59.8cost for instructional space that the district would otherwise lease. The commissioner must
59.9deny this levy authority unless the district passes a resolution stating its intent to lease
59.10instructional space under this section if the commissioner does not grant authority under
59.11this paragraph. The resolution must also certify that the lease cost for administrative space
59.12under this paragraph is no greater than the lease cost for the district's proposed instructional
59.13lease.
59.14(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the
59.15district's proportionate share of deferred maintenance expenditures for a district-owned
59.16building or site leased to a cooperative unit under section 123A.24, subdivision 2, or a joint
59.17powers district under section 471.59 for any instructional purposes or for school storage.
59.18EFFECTIVE DATE.This section is effective for taxes payable in 2026 and later.

59.19    Sec. 7. Minnesota Statutes 2024, section 126C.40, is amended by adding a subdivision to
59.20read:
59.21    Subd. 1a. Definitions. (a) For the purposes of this section, the following terms have the
59.22meanings given.
59.23(b) "Capital lease" means an agreement to use, construct, or remodel a site that results
59.24in ownership of the site by the district.
59.25(c) "Instructional purposes" means that the use of a building or land being leased leads
59.26to education-related outcomes identified in law or state program policy.
59.27(d) "Joint powers lease" means a capital lease or operational lease under which two or
59.28more districts agree to contribute to the annual lease costs. Under a joint powers lease, the
59.29host district or joint powers district has the authority to allocate lease costs to member
59.30districts for leases approved by the commissioner.
59.31(e) "Operating costs" means the costs of regular maintenance or custodial supplies and
59.32services.
60.1(f) "Operational lease" means an agreement to use buildings or land that does not result
60.2in ownership of the property by the district.
60.3EFFECTIVE DATE.This section is effective for taxes payable in 2026 and later.

60.4    Sec. 8. Minnesota Statutes 2024, section 126C.45, is amended to read:
60.5126C.45 ICE ARENA LEVY.
60.6    (a) Each year, an independent school district operating and maintaining an ice arena,
60.7may levy for the net operational costs of the ice arena. The levy may not exceed the net
60.8actual costs of operation of the arena for the previous year. Net actual costs are defined as
60.9operating costs less any operating revenues.
60.10(b) Two or more school districts may enter into a cooperation agreement to operate and
60.11maintain an ice arena. A district with a cooperation agreement must apportion the qualifying
60.12costs and annual levy amount among each cooperating district as specified in the cooperation
60.13agreement. Cooperating districts must report the apportionment of the costs and levy to the
60.14Department of Education in the form and manner specified by the commissioner.
60.15    (b) (c) Any district operating and maintaining an ice arena must demonstrate to the
60.16satisfaction of the Office of Monitoring in the department that the district will offer equal
60.17sports opportunities for male and female students to use its ice arena, particularly in areas
60.18of access to prime practice time, team support, and providing junior varsity and younger
60.19level teams for girls' ice sports and ice sports offerings.
60.20EFFECTIVE DATE.This section is effective for taxes payable in 2026 and later.

60.21    Sec. 9. APPROPRIATIONS.
60.22    Subdivision 1. Department of Education. The sums indicated in this section are
60.23appropriated from the general fund to the Department of Education for the fiscal years
60.24designated.
60.25    Subd. 2. Debt service equalization aid. (a) For debt service equalization aid under
60.26Minnesota Statutes, section 123B.53, subdivision 6:
60.27
$
16,218,000
.....
2026
60.28
$
14,327,000
.....
2027
60.29(b) The 2026 appropriation includes $1,986,000 for 2025 and $14,232,000 for 2026.
60.30(c) The 2027 appropriation includes $1,581,000 for 2026 and $12,746,000 for 2027.
61.1    Subd. 3. Equity in telecommunications access. (a) For equity in telecommunications
61.2access:
61.3
$
3,750,000
.....
2026
61.4
$
3,750,000
.....
2027
61.5(b) If the appropriation amount is insufficient, the commissioner must reduce the
61.6reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
61.7revenue for fiscal years 2026 and 2027 must be prorated.
61.8(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
61.9    Subd. 4. Grants for gender-neutral single-user restrooms. (a) For grants to school
61.10districts for remodeling, constructing, or repurposing space for gender-neutral single-user
61.11restrooms:
61.12
$
1,000,000
.....
2026
61.13
$
1,000,000
.....
2027
61.14(b) A school district or a cooperative unit under Minnesota Statutes, section 123A.24,
61.15subdivision 2, may apply for a grant of not more than $75,000 per site under this subdivision
61.16in the form and manner specified by the commissioner.
61.17(c) The commissioner must ensure that grants are awarded to schools to reflect the
61.18geographic diversity of the state.
61.19(d) Up to $75,000 each year is available for grant administration and monitoring.
61.20(e) By February 1 of each year, the commissioner must annually report to the legislative
61.21committees with jurisdiction over kindergarten through grade 12 education on the number
61.22of grants that were awarded each year and the number of grant applications that were
61.23unfunded each year.
61.24(f) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
61.25    Subd. 5. Long-term facilities maintenance equalized aid. (a) For long-term facilities
61.26maintenance equalized aid under Minnesota Statutes, section 123B.595, subdivision 9:
61.27
$
106,451,000
.....
2026
61.28
$
105,587,000
.....
2027
61.29(b) The 2026 appropriation includes $10,719,000 for 2025 and $95,732,000 for 2026.
61.30(c) The 2027 appropriation includes $10,636,000 for 2026 and $94,951,000 for 2027.

62.1ARTICLE 7
62.2SCHOOL NUTRITION AND LIBRARIES

62.3    Section 1. Minnesota Statutes 2024, section 124D.111, subdivision 3, is amended to read:
62.4    Subd. 3. School food service fund. (a) The expenses described in this subdivision must
62.5be recorded as provided in this subdivision. To the extent possible, the Department of
62.6Education must not limit eligible expenditures from the food service fund to a level below
62.7that allowed by federal law.
62.8(b) In each district, the expenses for a school food service program for pupils must be
62.9attributed to a school food service fund. Under a food service program, the school food
62.10service may prepare or serve milk, meals, or snacks in connection with school or community
62.11service activities.
62.12(c) Revenues and expenditures for food service activities must be recorded in the food
62.13service fund. The costs of processing applications, accounting for meals, preparing and
62.14serving food, providing kitchen custodial services, and other expenses involving the preparing
62.15of meals or the kitchen section or serving area sections of the lunchroom may be charged
62.16to the food service fund or to the general fund of the district. For the purposes of this
62.17paragraph, the costs of serving food include the costs of technology and systems related to
62.18serving line automation and meal tracking. The costs of lunchroom supervision, lunchroom
62.19custodial services, lunchroom utilities, lunchroom furniture, and other administrative costs
62.20of the food service program must be charged to the general fund.
62.21That portion of superintendent and fiscal manager costs that can be documented as
62.22attributable to the food service program may be charged to the food service fund provided
62.23that the school district does not employ or contract with a food service director or other
62.24individual who manages the food service program, or food service management company.
62.25If the cost of the superintendent or fiscal manager is charged to the food service fund, the
62.26charge must be at a wage rate not to exceed the statewide average for food service directors
62.27as determined by the department.
62.28Staff whose primary responsibility is financial or program management of food service
62.29operations may charge time spent managing the program to the food service program.
62.30(d) Capital expenditures for the purchase of food service equipment must be made from
62.31the general fund and not the food service fund, unless the restricted balance in the food
62.32service fund at the end of the last fiscal year is greater than the cost of the equipment to be
62.33purchased.
63.1(e) If the condition set out in paragraph (d) applies, the equipment may be purchased
63.2from the food service fund.
63.3(f) If a deficit in the food service fund exists at the end of a fiscal year, and the deficit
63.4is not eliminated by revenues from food service operations in the next fiscal year, then the
63.5deficit must be eliminated by a permanent fund transfer from the general fund at the end of
63.6that second fiscal year. However, if a district contracts with a food service management
63.7company during the period in which the deficit has accrued, the deficit must be eliminated
63.8by a payment from the food service management company.
63.9(g) Notwithstanding paragraph (f), a district may incur a deficit in the food service fund
63.10for up to three years without making the permanent transfer if the district submits to the
63.11commissioner by January 1 of the second fiscal year a plan for eliminating that deficit at
63.12the end of the third fiscal year.
63.13(h) If a surplus in the food service fund exists at the end of a fiscal year for three
63.14successive years, a district may recode for that fiscal year the documented costs of lunchroom
63.15supervision, lunchroom custodial services, lunchroom utilities, lunchroom furniture, and
63.16other administrative costs of the food service program charged to the general fund according
63.17to paragraph (c), or costs under paragraph (j), and charge those costs to the food service
63.18fund identified by the commissioner in a total amount not to exceed the amount of surplus
63.19in the food service fund.
63.20(i) For purposes of this subdivision, "lunchroom furniture" means tables and chairs
63.21regularly used by pupils in a lunchroom from which they may consume milk, meals, or
63.22snacks in connection with school or community service activities.
63.23(j) In addition to the uses authorized in paragraph (h) and subject to the same surplus
63.24fund balance limitations in paragraph (h), a district may spend the excess funds on expenses
63.25that improve the school food service, including the costs of plumbing, electrical, air handling,
63.26ventilation, or other building utility work necessary to operate equipment essential for food
63.27service activities or to remediate food service-related health and safety hazards.
63.28EFFECTIVE DATE.This section is effective for fiscal year 2027 and later.

63.29    Sec. 2. Minnesota Statutes 2024, section 124D.119, subdivision 1, is amended to read:
63.30    Subdivision 1. Summer Food Service Electronic Benefit Transfer Program
63.31replacement aid. State funds are available to compensate department-approved school food
63.32authorities who gather student data for the Summer Food Service Electronic Benefit Transfer
63.33Program sponsors. Reimbursement shall be made on by December 15 based on total meals
64.1served by each sponsor from the end of the school year to the beginning of the next school
64.2year the number of pupil units eligible during the Summer Electronic Benefit Transfer
64.3Program eligibility year on a pro rata basis.

64.4    Sec. 3. APPROPRIATIONS.
64.5    Subdivision 1. Department of Education. The sums indicated in this section are
64.6appropriated from the general fund to the Department of Education for the fiscal years
64.7designated. Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
64.8    Subd. 2. Basic system support. (a) For basic system support aid under Minnesota
64.9Statutes, section 134.355:
64.10
$
17,995,000
.....
2026
64.11
$
18,372,000
.....
2027
64.12(b) The 2026 appropriation includes $1,752,000 for 2025 and $16,243,000 for 2026.
64.13(c) The 2027 appropriation includes $1,804,000 for 2026 and $16,568,000 for 2027.
64.14    Subd. 3. Electronic library for Minnesota. For statewide licenses to online databases
64.15selected in cooperation with the Minnesota Office of Higher Education for school media
64.16centers, public libraries, state government agency libraries, and public or private college or
64.17university libraries:
64.18
$
900,000
.....
2026
64.19
$
900,000
.....
2027
64.20    Subd. 4. School lunch. For school lunch aid under Minnesota Statutes, section 124D.111,
64.21including the amounts for the free school meals program:
64.22
$
264,162,000
.....
2026
64.23
$
276,392,000
.....
2027
64.24    Subd. 5. School breakfast. For school breakfast aid under Minnesota Statutes, section
64.25124D.1158:
64.26
$
57,642,000
.....
2026
64.27
$
60,413,000
.....
2027
64.28    Subd. 6. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
64.29section 124D.118:
64.30
$
387,000
.....
2026
64.31
$
387,000
.....
2027
65.1    Subd. 7. Multicounty, multitype library systems. (a) For aid under Minnesota Statutes,
65.2sections 134.353 and 134.354, to multicounty, multitype library systems:
65.3
$
2,000,000
.....
2026
65.4
$
2,000,000
.....
2027
65.5(b) The 2026 appropriation includes $200,000 for 2025 and $1,800,000 for 2026.
65.6(c) The 2027 appropriation includes $200,000 for 2026 and $1,800,000 for 2027.
65.7    Subd. 8. Regional library telecommunications. (a) For regional library
65.8telecommunications aid under Minnesota Statutes, section 134.355:
65.9
$
2,300,000
.....
2026
65.10
$
2,300,000
.....
2027
65.11(b) The 2026 appropriation includes $230,000 for 2025 and $2,070,000 for 2026.
65.12(c) The 2027 appropriation includes $230,000 for 2026 and $2,070,000 for 2027.
65.13    Subd. 9. School library aid. (a) For school library aid under Minnesota Statutes 2024,
65.14section 124D.992:
65.15
$
2,376,000
.....
2026
65.16(b) The 2026 appropriation includes $2,376,000 for 2025.
65.17    Subd. 10. Summer Electronic Benefit Transfer Program. To support local education
65.18agencies uploading data for and administering the Summer Electronic Benefit Transfer
65.19Program:
65.20
$
150,000
.....
2026
65.21
$
150,000
.....
2027

65.22    Sec. 4. REPEALER.
65.23Minnesota Statutes 2024, section 124D.992, is repealed July 1, 2025.

65.24ARTICLE 8
65.25EARLY CHILDHOOD EDUCATION

65.26    Section 1. APPROPRIATIONS.
65.27    Subdivision 1. Department of Education. The sums indicated in this section are
65.28appropriated from the general fund to the Department of Education in the fiscal years
65.29designated.
66.1    Subd. 2. Kindergarten entry assessment. (a) For the kindergarten entry assessment
66.2under Minnesota Statutes, section 124D.162:
66.3
$
2,357,000
.....
2026
66.4
$
1,743,000
.....
2027
66.5(b) The base for fiscal year 2028 and later is $1,743,000.

66.6    Sec. 2. APPROPRIATION; DEPARTMENT OF CHILDREN, YOUTH, AND
66.7FAMILIES.
66.8    Subdivision 1. Department of Children, Youth, and Families. The sums indicated in
66.9this section are appropriated from the general fund to the Department of Children, Youth,
66.10and Families in the fiscal years designated.
66.11    Subd. 2. Administration. (a) For central office administrative funds for the Department
66.12of Children, Youth, and Families:
66.13
$
1,143,000
.....
2026
66.14
$
1,143,000
.....
2027
66.15(b) The base for this program is $1,143,000 for fiscal year 2028 and later.
66.16    Subd. 3. Early childhood family education. (a) For early childhood family education
66.17under Minnesota Statutes, section 142D.11:
66.18
$
39,365,000
.....
2026
66.19
$
41,300,000
.....
2027
66.20(b) The 2026 appropriation includes $3,792,000 for 2025 and $35,573,000 for 2026.
66.21(c) The 2027 appropriation includes $3,952,000 for 2026 and $37,348,000 for 2027.
66.22    Subd. 4. Home visiting aid. (a) For home visiting aid under Minnesota Statutes, section
66.23142D.11:
66.24
$
245,000
.....
2026
66.25
$
222,000
.....
2027
66.26(b) The 2026 appropriation includes $28,000 for 2025 and $217,000 for 2026.
66.27(c) The 2027 appropriation includes $24,000 for 2026 and $198,000 for 2027.
66.28    Subd. 5. Developmental screening aid. (a) For developmental screening aid under
66.29Minnesota Statutes, section 142D.093:
67.1
$
4,127,000
.....
2026
67.2
$
4,083,000
.....
2027
67.3(b) The 2026 appropriation includes $414,000 for 2025 and $3,713,000 for 2026.
67.4(c) The 2027 appropriation includes $412,000 for 2026 and $3,671,000 for 2027.
67.5    Subd. 6. School readiness aid. (a) For school readiness aid under Minnesota Statutes,
67.6section 142D.06:
67.7
$
33,683,000
.....
2026
67.8
$
33,683,000
.....
2027
67.9(b) The 2026 appropriation includes $3,368,000 for 2025 and $30,315,000 for 2026.
67.10(c) The 2027 appropriation includes $3,368,000 for 2026 and $30,315,000 for 2027.

67.11    Sec. 3. APPROPRIATION; OFFICE OF HIGHER EDUCATION.
67.12    Subdivision 1. Office of Higher Education. The sums indicated in this section are
67.13appropriated from the general fund to the Office of Higher Education in the fiscal years
67.14designated.
67.15    Subd. 2. Early childhood and family education teacher shortage. (a) For grants to
67.16Minnesota institutions of higher education to address the early childhood and family
67.17education teacher shortage:
67.18
$
500,000
.....
2026
67.19
$
500,000
.....
2027
67.20(b) Grant funds may be used to provide tuition and other supports to students.
67.21(c) Up to five percent of the grant amount is available for grant administration and
67.22monitoring.
67.23(d) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.

67.24ARTICLE 9
67.25COMMUNITY EDUCATION AND LIFELONG LEARNING

67.26    Section 1. APPROPRIATIONS.
67.27    Subdivision 1. Department of Education. The sums indicated in this section are
67.28appropriated from the general fund to the Department of Education for the fiscal years
67.29designated. Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
68.1    Subd. 2. Adult basic education aid. (a) For adult basic education aid under Minnesota
68.2Statutes, section 124D.531:
68.3
$
55,281,000
.....
2026
68.4
$
56,919,000
.....
2027
68.5(b) The 2026 appropriation includes $5,401,000 for 2025 and $49,880,000 for 2026.
68.6(c) The 2027 appropriation includes $5,542,000 for 2026 and $51,377,000 for 2027.
68.7    Subd. 3. Adults with disabilities program aid. (a) For adults with disabilities programs
68.8under Minnesota Statutes, section 124D.56:
68.9
$
1,560,000
.....
2026
68.10
$
1,580,000
.....
2027
68.11(b) The 2026 appropriation includes $151,000 for 2025 and $1,409,000 for 2026.
68.12(c) The 2027 appropriation includes $156,000 for 2026 and $1,424,000 for 2027.
68.13    Subd. 4. Community education aid. (a) For community education aid under Minnesota
68.14Statutes, section 124D.20:
68.15
$
10,080,000
.....
2026
68.16
$
11,815,000
.....
2027
68.17(b) The 2026 appropriation includes $871,000 for 2025 and $9,209,000 for 2026.
68.18(c) The 2027 appropriation includes $1,023,000 for 2026 and $10,792,000 for 2027.
68.19    Subd. 5. Deaf, deafblind, and hard-of-hearing adults. For programs for deaf, deafblind,
68.20and hard-of-hearing adults under Minnesota Statutes, section 124D.57:
68.21
$
70,000
.....
2026
68.22
$
70,000
.....
2027
68.23    Subd. 6. High school equivalency tests. For payment of the costs of the
68.24commissioner-selected high school equivalency tests under Minnesota Statutes, section
68.25124D.55:
68.26
$
125,000
.....
2026
68.27
$
125,000
.....
2027
68.28    Subd. 7. Neighborhood partnership grants. (a) For neighborhood partnership grants
68.29under Minnesota Statutes, section 124D.99:
68.30
$
2,600,000
.....
2026
68.31
$
2,600,000
.....
2027
69.1(b) Of the amounts in paragraph (a), $1,300,000 each year is for the Northside
69.2Achievement Zone and $1,300,000 each year is for the St. Paul Promise Neighborhood.
69.3    Subd. 8. Regional neighborhood partnership grants. (a) For regional neighborhood
69.4partnership grants under Minnesota Statutes, section 124D.99:
69.5
$
1,400,000
.....
2026
69.6
$
1,400,000
.....
2027
69.7(b) Of the amounts in paragraph (a), $200,000 each year is for the following programs:
69.8(1) Northfield Healthy Community Initiative in Northfield;
69.9(2) Red Wing Youth Outreach Program in Red Wing;
69.10(3) United Way of Central Minnesota in St. Cloud;
69.11(4) Austin Aspires in Austin;
69.12(5) Rochester Area Foundation in Rochester;
69.13(6) Greater Twin Cities United Way for Generation Next; and
69.14(7) Children First and Partnership for Success in St. Louis Park.
69.15    Subd. 9. School-age care aid. (a) For school-age care aid under Minnesota Statutes,
69.16section 124D.22:
69.17
$
1,000
.....
2026
69.18
$
1,000
.....
2027
69.19(b) The 2026 appropriation includes $0 for 2025 and $1,000 for 2026.
69.20(c) The 2027 appropriation includes $0 for 2026 and $1,000 for 2027.

69.21ARTICLE 10
69.22STATE AGENCIES

69.23    Section 1. [127A.205] EDUCATION GRANT TERMINATION.
69.24(a) The commissioner of education must not enter into a grant agreement, or must
69.25terminate a grant agreement, if any of the following conditions apply:
69.26(1) the recipient is a nonprofit organization that is required to file a Form 990 or Form
69.27990-EZ with the Internal Revenue Service, but has failed to do so. If the organization has
69.28not been in existence long enough or is not required to file Form 990 or Form 990-EZ, the
69.29organization must provide the department its most recent financial statements or an audit
69.30approved within the previous 12 months;
70.1(2) the recipient is required to file a report under section 309.53 and has not filed the
70.2report;
70.3(3) the recipient fails to file an annual renewal and is administratively dissolved by the
70.4secretary of state; or
70.5(4) the recipient fails to maintain tax-exempt status under state or federal law.
70.6(b) This section does not apply to a grant to a political subdivision, including a school
70.7district, a cooperative unit under section 123A.24, subdivision 2, or a charter school.
70.8EFFECTIVE DATE.This section is effective the day following final enactment.

70.9    Sec. 2. CANCELLATION; PASSENGER RAIL PROJECT.
70.10$109,000,000 of the appropriation in Laws 2023, chapter 68, article 1, section 2,
70.11subdivision 2, paragraph (d), for capital improvements and betterments for the
70.12Minneapolis-Duluth Northern Lights Express intercity passenger rail project is canceled on
70.13the effective date of this section.

70.14    Sec. 3. CANCELLATION; MINNESOTA DEPARTMENT OF EDUCATION
70.15APPROPRIATIONS.
70.16    Subdivision 1. Office of Inspector General. $1,500,000 from the appropriation in Laws
70.172023, chapter 55, article 12, section 17, subdivision 2, as amended by Laws 2024, chapter
70.18115, article 10, section 3, for the Office of Inspector General is canceled on the effective
70.19date of this section.
70.20    Subd. 2. Specific Learning Disability. $500,000 from the appropriation in Laws 2023,
70.21chapter 55, article 12, section 17, subdivision 2, as amended by Laws 2024, chapter 115,
70.22article 10, section 3, for the engagement and rulemaking related to Specific Learning
70.23Disability is canceled on the effective date of this section.
70.24EFFECTIVE DATE.This section is effective the day following final enactment.

70.25    Sec. 4. APPROPRIATIONS; PROFESSIONAL EDUCATOR LICENSING AND
70.26STANDARDS BOARD.
70.27    Subdivision 1. Professional Educator Licensing and Standards Board. The sums
70.28indicated in this section are appropriated from the general fund to the Professional Educator
70.29Licensing and Standards Board in the fiscal years designated. Any balance remaining in
70.30fiscal 2026 is available in fiscal year 2027.
71.1    Subd. 2. Professional Educator Licensing and Standards Board. For the Professional
71.2Educator Licensing and Standards Board:
71.3
$
3,703,000
.....
2026
71.4
$
3,776,000
.....
2027

71.5    Sec. 5. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
71.6    Subdivision 1. Department of Education. The sums indicated in this section are
71.7appropriated from the general fund to the Department of Education for the fiscal years
71.8designated. Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
71.9    Subd. 2. Department. (a) For the Department of Education:
71.10
$
44,078,000
.....
2026
71.11
$
40,766,000
.....
2027
71.12Of these amounts:
71.13(1) $405,000 each year is for the Board of School Administrators;
71.14(2) $1,000,000 each year is for regional centers of excellence under Minnesota Statutes,
71.15section 120B.115;
71.16(3) $720,000 each year is for implementing Minnesota's Learning for English Academic
71.17Proficiency and Success Act (LEAPS) under Laws 2014, chapter 272, article 1, as amended;
71.18(4) $480,000 each year is for the Department of Education's mainframe update;
71.19(5) $4,000,000 in fiscal year 2026 only is for legal fees and costs associated with litigation
71.20against the department relating to constitutional challenges to the state's education system;
71.21(6) $2,359,000 each year is for modernizing district data submissions;
71.22(7) $573,000 each year is for engagement and rulemaking related to Specific Learning
71.23Disability;
71.24(8) $150,000 each year is for an ethnic studies specialist in the academic standards
71.25division to provide support to the ethnic studies working group and to school districts seeking
71.26to establish or strengthen ethnic studies courses;
71.27(9) $150,000 each year is for the comprehensive school mental health services lead under
71.28Minnesota Statutes, section 127A.215;
71.29(10) $150,000 each year is for a school health services specialist under Minnesota
71.30Statutes, section 121A.20;
72.1(11) $2,000,000 each year is for the Office of the Inspector General established under
72.2Minnesota Statutes, section 127A.21;
72.3(12) $800,000 each year is for audit and internal control resources;
72.4(13) $175,000 each year is for administrative expenses for unemployment aid;
72.5(14) $120,000 each year is to support schools and districts in accessing resources on
72.6cannabis use and substance use; and
72.7(15) $572,000 each year is for administration of the Summer Electronic Benefits Transfer
72.8Program.
72.9(b) None of the amounts appropriated under this subdivision may be used for Minnesota's
72.10Washington, D.C., office.
72.11(c) The expenditures of federal grants and aids as shown in the biennial budget document
72.12and its supplements are approved and appropriated and must be spent as indicated.

72.13    Sec. 6. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
72.14(a) The sums indicated in this section are appropriated from the general fund to the
72.15Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:
72.16
$
17,838,000
.....
2026
72.17
$
17,937,000
.....
2027
72.18(b) Of these amounts, $321,000 each year is for unemployment costs.
72.19(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.

72.20    Sec. 7. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
72.21(a) The sums indicated in this section are appropriated from the general fund to the
72.22Perpich Center for Arts Education for the fiscal years designated:
72.23
$
8,637,000
.....
2026
72.24
$
8,818,000
.....
2027
72.25    (b) Of these amounts, $24,000 each year is for unemployment costs.
72.26(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.

73.1ARTICLE 11
73.2THE READ ACT

73.3    Section 1. Minnesota Statutes 2024, section 120B.118, is amended to read:
73.4120B.118 TITLE; THE READ ACT.
73.5    Subdivision 1. Title. Sections 120B.118 to 120B.124 may be cited as the "Reading to
73.6Ensure Academic Development Act" or the "Read Act."
73.7    Subd. 2. Policy. It is the intent of the legislature that public schools promote foundational
73.8literacy and grade-level reading proficiency through the use of curricula, textbooks,
73.9instructional materials, instructional practices, interventions, and teacher development and
73.10training based solely on the science of reading.
73.11EFFECTIVE DATE.This section is effective July 1, 2025.

73.12    Sec. 2. Minnesota Statutes 2024, section 120B.119, subdivision 2a, is amended to read:
73.13    Subd. 2a. Certified trained facilitator. "Certified trained facilitator" means a person
73.14employed by a district or regional literacy network Minnesota service cooperative who has
73.15completed professional development approved by the Department of Education in structured
73.16literacy, completed the vendor's certification prerequisites and facilitator training
73.17requirements, completed the vendor's annual recertification requirements, remains in good
73.18standing with the sponsoring agency and vendor, uses the vendor's training materials with
73.19fidelity, and participates in mentoring or coaching provided by CAREI and the Department
73.20of Education on facilitating literacy training. A literacy lead who meets the requirements
73.21under this subdivision may be a certified trained facilitator.
73.22EFFECTIVE DATE.This section is effective July 1, 2025.

73.23    Sec. 3. Minnesota Statutes 2024, section 120B.119, subdivision 4, is amended to read:
73.24    Subd. 4. Evidence-based. Evidence-based literacy instruction and literacy materials are
73.25based on the science of reading. "Evidence-based" means the instruction or item described
73.26is based on reliable, trustworthy, and valid evidence and science-based reading research,
73.27and has demonstrated a record of success in increasing students' reading competency in the
73.28areas of phonological and phonemic awareness, phonics, vocabulary development, reading
73.29fluency, and reading comprehension. Evidence-based literacy instruction is explicit,
73.30systematic, and includes phonological and phonemic awareness, phonics and decoding,
73.31spelling, fluency, vocabulary, oral language, and comprehension that can be differentiated
74.1to meet the needs of individual students. Evidence-based instruction does not include the
74.2three-cueing system, as defined in subdivision 16.

74.3    Sec. 4. Minnesota Statutes 2024, section 120B.119, subdivision 10, is amended to read:
74.4    Subd. 10. Oral language. "Oral language," also called "spoken expressive language"
74.5or "receptive language," includes speaking and listening, and consists of five components:
74.6phonology, morphology, syntax, semantics, and pragmatics. Oral language also includes
74.7sign language, in which speaking and listening skills are defined as expressive and receptive
74.8skills, and consists of phonology, including sign language phonological awareness,
74.9morphology, syntax, semantics, and pragmatics.
74.10EFFECTIVE DATE.This section is effective July 1, 2025.

74.11    Sec. 5. Minnesota Statutes 2024, section 120B.119, is amended by adding a subdivision
74.12to read:
74.13    Subd. 14a. Science-based reading research. "Science-based reading research" means
74.14research that:
74.15(1) applies rigorous, systematic, and objective observational or experimental procedures
74.16to obtain knowledge relevant to reading development, reading instruction, and reading and
74.17writing difficulties; and
74.18(2) explains how proficient reading and writing develop, why some children have
74.19difficulties developing key literacy skills, and how schools can best assess and instruct early
74.20literacy, including the use of evidence-based literacy instruction practices to promote reading
74.21and writing achievement.
74.22EFFECTIVE DATE.This section is effective July 1, 2025.

74.23    Sec. 6. Minnesota Statutes 2024, section 120B.119, subdivision 15, is amended to read:
74.24    Subd. 15. Structured literacy. "Structured literacy" means an approach to reading
74.25instruction based on the science of reading in which teachers carefully structure important
74.26literacy skills, concepts, and the sequence of instruction to facilitate children's literacy
74.27learning and progress. Structured literacy is characterized by the provision of systematic,
74.28explicit, sequential, and diagnostic instruction in phonemic awareness, phonics, fluency,
74.29vocabulary and oral language development, and reading comprehension.

75.1    Sec. 7. Minnesota Statutes 2024, section 120B.12, subdivision 2, is amended to read:
75.2    Subd. 2. Identification; report. (a) Each school district must screen every student
75.3enrolled in kindergarten, grade 1, grade 2, and grade 3 using a screening tool approved by
75.4the Department of Education three times each school year: (1) within the first six weeks of
75.5the school year; (2) by February 15 each year; and (3) within the last six weeks of the school
75.6year. Students enrolled in kindergarten, grade 1, grade 2, and grade 3, including multilingual
75.7learners and students receiving special education services, must be universally screened for
75.8mastery of foundational reading skills, including phonemic awareness, phonics, decoding,
75.9fluency, oral language, and for characteristics of dyslexia as measured by a screening tool
75.10approved by the Department of Education. The screening for characteristics of dyslexia
75.11may be integrated with universal screening for mastery of foundational skills and oral
75.12expressive-receptive language mastery. The screening tool used must be a valid and reliable
75.13universal screener that is highly correlated with foundational reading skills. For students
75.14reading at grade level, beginning in the winter of grade 2, the oral reading fluency screener
75.15may be used to assess reading difficulties, including characteristics of dyslexia, without
75.16requiring a separate screening of each subcomponent of foundational reading skills.
75.17    (b) A district must submit data on student performance in kindergarten, grade 1, grade
75.182, and grade 3 on foundational reading skills, including phonemic awareness, phonics,
75.19decoding, fluency, and oral language to the Department of Education in the annual local
75.20literacy plan submission due on June 15.
75.21    (b) (c) Students in grades 4 and above, including multilingual learners and students
75.22receiving special education services, who do not demonstrate mastery of foundational
75.23reading skills, including phonemic awareness, phonics, decoding, fluency, and oral language,
75.24are not reading at grade level must be screened for reading difficulties, including
75.25characteristics of dyslexia, using a screening tool approved by the Department of Education
75.26for characteristics of dyslexia, and must continue to receive evidence-based instruction,
75.27interventions, and progress monitoring until the students achieve grade-level proficiency.
75.28A parent, in consultation with a teacher, may opt a student out of the literacy screener if the
75.29parent and teacher decide that continuing to screen would not be beneficial to the student.
75.30In such limited cases, the student must continue to receive progress monitoring and literacy
75.31interventions.
75.32    (c) (d) Reading screeners in English, and in the predominant languages of district students
75.33where practicable, must identify and evaluate students' areas of academic need related to
75.34literacy. The district also must monitor the progress and provide reading instruction
75.35appropriate to the specific needs of multilingual learners. The district must use an approved,
76.1developmentally appropriate, and culturally responsive screener and annually report summary
76.2screener results to the commissioner by June 15 in the form and manner determined by the
76.3commissioner.
76.4    (d) (e) The district also must include in its local literacy plan under subdivision 4a, a
76.5summary of the district's efforts to screen, identify, and provide interventions to students
76.6who demonstrate characteristics of dyslexia as measured by a screening tool approved by
76.7the Department of Education. Districts are strongly encouraged to use a MTSS framework.
76.8With respect to students screened or identified under paragraph (a), the report must include:
76.9    (1) a summary of the district's efforts to screen for reading difficulties, including dyslexia;
76.10    (2) the number of students universally screened for that reporting year;
76.11    (3) the number of students demonstrating characteristics of dyslexia for that year; and
76.12(4) an explanation of how students identified under this subdivision are provided with
76.13alternate instruction and interventions under section 125A.56, subdivision 1.
76.14EFFECTIVE DATE.This section is effective July 1, 2025.

76.15    Sec. 8. Minnesota Statutes 2024, section 120B.12, subdivision 3, is amended to read:
76.16    Subd. 3. Intervention. (a) For each student identified under subdivision 2, the district
76.17shall provide reading intervention to accelerate student growth and reach the goal of reading
76.18at or above grade level by the end of the current grade and school year. A district is
76.19encouraged to provide reading intervention through a MTSS framework. If a student does
76.20not read at or above grade level by the end of the current school year, the district must
76.21continue to provide reading intervention until the student reads at grade level. District
76.22intervention methods shall encourage family engagement and, where possible, collaboration
76.23with appropriate school and community programs that specialize in evidence-based
76.24instructional practices and measure mastery of foundational reading skills, including
76.25phonemic awareness, phonics, decoding, fluency, and oral language. Intervention may
76.26include but is not limited to requiring student attendance in summer school, intensified
76.27reading instruction that may require that the student be removed from the regular classroom
76.28for part of the school day, extended-day programs, or programs that strengthen students'
76.29cultural connections.
76.30(b) A district or charter school is strongly encouraged to provide a personal learning
76.31plan for a student who is unable to demonstrate grade-level proficiency, as measured by the
76.32statewide reading assessment in grade 3 or a screener identified by the Department of
76.33Education under section 120B.123. The district or charter school must determine the format
77.1of the personal learning plan in collaboration with the student's educators and other
77.2appropriate professionals. The school must develop the learning plan in consultation with
77.3the student's parent or guardian. The personal learning plan must include targeted instruction
77.4that is evidence-based and ongoing progress monitoring, and address knowledge gaps and
77.5skill deficiencies through strategies such as specific exercises and practices during and
77.6outside of the regular school day, group interventions, periodic assessments or screeners,
77.7and reasonable timelines. The personal learning plan may include grade retention, if it is in
77.8the student's best interest; a student may not be retained solely due to delays in literacy or
77.9not demonstrating grade-level proficiency. A school must maintain and regularly update
77.10and modify the personal learning plan until the student reads at grade level. This paragraph
77.11does not apply to a student under an individualized education program.
77.12(c) Starting in the 2025-2026 2026-2027 school year, a district must use only
77.13evidence-based literacy interventions. Districts are strongly encouraged to use intervention
77.14materials approved by the Department of Education under the Read Act.
77.15(d) Starting in the 2026-2027 school year, to provide a Tier 2 literacy intervention, a
77.16paraprofessional or other unlicensed person, including a volunteer, must be supervised by
77.17a licensed teacher who has completed training in evidence-based reading instruction approved
77.18by the Department of Education, and has completed evidence-based training developed
77.19under the Read Act by CAREI or the regional literacy networks under section 120B.124,
77.20subdivision 4, or a training that the department has determined meets or exceeds the
77.21requirements of section 120B.124, subdivision 4.
77.22EFFECTIVE DATE.This section is effective July 1, 2025.

77.23    Sec. 9. Minnesota Statutes 2024, section 120B.12, subdivision 4, is amended to read:
77.24    Subd. 4. Staff development. (a) A district must provide training on evidence-based
77.25structured literacy instruction to teachers and instructional staff in accordance with
77.26subdivision 1, paragraphs (b) and (c). The training must include teaching in the areas of
77.27phonemic awareness, phonics, vocabulary development, reading fluency, reading
77.28comprehension, and culturally and linguistically responsive pedagogy.
77.29(b) Each district shall use the data under subdivision 2 to identify the staff development
77.30needs so that:
77.31(1) elementary teachers are able to implement explicit, systematic, evidence-based
77.32instruction in the five reading areas of phonemic awareness, phonics, fluency, vocabulary,
77.33and comprehension with emphasis on mastery of foundational reading skills as defined in
78.1section 120B.119 and other literacy-related areas including writing until the student achieves
78.2grade-level reading and writing proficiency;
78.3(2) elementary teachers receive training to provide students with evidence-based reading
78.4and oral language instruction that meets students' developmental, linguistic, and literacy
78.5needs using the intervention methods or programs selected by the district for the identified
78.6students;
78.7(3) licensed teachers employed by the district have opportunities to improve reading
78.8and writing instruction through approved professional development identified in the local
78.9literacy plan;
78.10(4) licensed teachers recognize students' diverse needs in cross-cultural settings and are
78.11able to serve the oral language and linguistic needs of students who are multilingual learners
78.12by maximizing strengths in their native languages in order to cultivate students' English
78.13language development, including oral academic language development, and build academic
78.14literacy; and
78.15(5) licensed teachers are trained in culturally responsive pedagogy that enables students
78.16to master content, develop skills to access content, and build relationships.
78.17(c) A district that offers early childhood programs, including voluntary prekindergarten
78.18for eligible four-year-old children, early childhood special education, and school readiness
78.19programs, must provide classroom teachers in early childhood programs training approved
78.20by the Department of Education to provide children in early childhood programs with
78.21explicit, systematic instruction in phonological and phonemic awareness; oral language,
78.22including listening comprehension; vocabulary; and letter-sound correspondence.
78.23EFFECTIVE DATE.This section is effective July 1, 2025.

78.24    Sec. 10. Minnesota Statutes 2024, section 120B.12, subdivision 4a, is amended to read:
78.25    Subd. 4a. Local literacy plan. (a) Consistent with this section, a school district must
78.26adopt a local literacy plan to have every child reading at or above grade level every year
78.27beginning in kindergarten and to support multilingual learners and students receiving special
78.28education services in achieving their individualized reading goals. A district must update
78.29and submit the plan to the commissioner by June 15 each year. The plan must be consistent
78.30with the Read Act, and include the following:
78.31(1) a process to assess students' foundational reading skills, oral language, and level of
78.32reading proficiency and the approved screeners used, by school site and grade level, under
78.33section 120B.123;
79.1(2) a process to notify and involve parents;
79.2(3) a description of how schools in the district will determine the targeted reading
79.3instruction that is evidence-based and includes an intervention strategy for a student and
79.4the process for intensifying or modifying the reading strategy in order to obtain measurable
79.5reading progress;
79.6(4) evidence-based intervention methods for students who are not reading at or above
79.7grade level and progress monitoring to provide information on the effectiveness of the
79.8intervention;
79.9(5) identification of staff development needs, including a plan to meet those needs;
79.10(6) the curricula used by school site and grade level and, if applicable, the district plan
79.11and timeline for adopting approved evidence-based curricula and materials starting in the
79.122025-2026 school year;
79.13(7) a statement of whether the district has adopted a MTSS framework;
79.14(8) student data using the measures of foundational literacy skills and mastery identified
79.15by the Department of Education for the following students:
79.16(i) students in kindergarten through grade 3;
79.17(ii) students who demonstrate characteristics of dyslexia; and
79.18(iii) students in grades 4 to 12 who are identified as not reading at grade level;
79.19(9) the number of teachers and other staff who have completed training approved by the
79.20department;
79.21(10) the number of teachers and other staff proposed for training in structured literacy;
79.22and
79.23(11) how the district used funding provided under the Read Act to implement the
79.24requirements of the Read Act.
79.25(b) The district must post its literacy plan on the official school district website and
79.26submit it to the commissioner of education using the template developed by the commissioner
79.27of education annually beginning June 15, 2024.
79.28(c) By March 1, 2024, the commissioner of education must develop Districts must use
79.29a streamlined template developed by the commissioner of education for local literacy plans
79.30that meets the requirements of this subdivision and requires all reading instruction and
79.31teacher training in reading instruction to be evidence-based. The template must require a
80.1district to report information using the student categories required in the commissioner's
80.2report under paragraph (d). The template must focus district resources on improving students'
80.3foundational reading skills while reducing paperwork requirements for teachers.
80.4(d) By December 1, 2025, the commissioner of education must submit a report to the
80.5legislative committees with jurisdiction over prekindergarten through grade 12 education
80.6summarizing the local literacy plans submitted to the commissioner. The summary must
80.7include the following information:
80.8(1) the number of teachers and other staff, by grade level, who have completed training
80.9approved by the Department of Education;
80.10(2) the number of teachers and other staff, by grade level, required to complete the
80.11training under section 120B.123, subdivision 5, who have not completed the training;
80.12(3) the number of teachers exempt under section 120B.123, subdivision 5, from
80.13completing training approved by the Department of Education;
80.14(4) by school site and grade, the approved screeners and the reading curriculum used;
80.15and
80.16(5) by school site and grade, using the measurements of foundational literacy skills and
80.17mastery identified by the department, both aggregated data and disaggregated data on student
80.18performance on the approved screeners using the student categories under section 120B.35,
80.19subdivision 3
, paragraph (a), clause (2).
80.20(e) By December 1, 2026, and December 1, 2027, the commissioner of education must
80.21submit updated reports containing the information required under paragraph (d) to the
80.22legislative committees with jurisdiction over prekindergarten through grade 12 education.
80.23EFFECTIVE DATE.This section is effective July 1, 2025.

80.24    Sec. 11. Minnesota Statutes 2024, section 120B.12, is amended by adding a subdivision
80.25to read:
80.26    Subd. 6. Dual language immersion programs. (a) A district dual language immersion
80.27program selecting evidence-based screening tools, training, curriculum, or literacy
80.28intervention materials after July 1, 2025, must establish an advisory committee to identify
80.29literacy screening tools, training for teachers and staff, and curriculum and literacy
80.30intervention materials in the target language. Upon request, the Department of Education
80.31and regional literacy networks must provide technical assistance to the advisory committee.
80.32The committee must:
81.1(1) include members whose first language is the target language, families of enrolled
81.2students, a member with expertise in special education, and teachers and other instructional
81.3staff;
81.4(2) use a rubric or other instrument to evaluate the alignment of the screening tools,
81.5training, and curriculum and literacy intervention materials to the science of reading; and
81.6(3) recommend strategies to support the transfer of literacy skills from the target language
81.7to English.
81.8(b) A district dual language immersion program is not required to comply with the
81.9requirements under the Read Act except as provided under this subdivision. A district dual
81.10language immersion program must:
81.11(1) provide training in accordance with section 120B.123, subdivision 5, to teachers and
81.12staff that provide instruction in foundational reading skills in English or assist in providing
81.13literacy interventions in English;
81.14(2) administer an approved screener in English in accordance with subdivision 2 in a
81.15grade in which the program provides instruction in foundational reading skills in English;
81.16and
81.17(3) use evidence-based curriculum and literacy intervention materials aligned to the
81.18science of reading when providing instruction in foundational reading skills in English.
81.19(c) The commissioner must provide a district dual language immersion program with a
81.20local literacy plan template that the district must use to report:
81.21(1) how the district assesses students' foundational reading skills, oral language, and
81.22level of reading proficiency in the target language;
81.23(2) the district's process to notify families with timely information about students' reading
81.24proficiency, including how the student's reading proficiency is assessed, any reading-related
81.25services or supports provided to the student and the student's progress, and strategies for
81.26families to use at home in helping students succeed in become grade-level proficient in
81.27reading in English or in the target language;
81.28(3) a description of how the district will determine and provide targeted reading
81.29instruction in the target language of instruction and supports to students identified as needing
81.30additional support in developing mastery of foundational reading skills;
81.31(4) how the district will identify staff development needs related to literacy instruction
81.32and a plan to meet the identified needs;
82.1(5) the reading curricula used by grade level; and
82.2(6) district efforts used to support the transfer of literacy skills from the target language
82.3to English.
82.4(d) A district dual language immersion program must post and submit its local literacy
82.5plan in accordance with subdivision 4a, but the plan is only required to include the
82.6information required under this subdivision.
82.7(e) Notwithstanding paragraph (b), for the 2025-2026 and 2026-2027 school years only,
82.8a district dual language immersion program is not required to:
82.9(1) use an approved screening tool, unless the screening tool uses the program's target
82.10language;
82.11(2) provide teachers and other staff approved training on literacy instruction unless the
82.12training is in the target language; or
82.13(3) use approved curriculum or literacy intervention materials that are not in the target
82.14language.

82.15    Sec. 12. Minnesota Statutes 2024, section 120B.123, subdivision 1, is amended to read:
82.16    Subdivision 1. Approved screeners. (a) A district must administer an approved
82.17evidence-based reading screener to students in kindergarten through grade 3 within the first
82.18six weeks of the school year, by February 15 each year, and again within the last six weeks
82.19of the school year. The screener must be one of the screening tools approved by the
82.20Department of Education. A district must identify any screener it uses in the district's annual
82.21literacy plan, and submit screening data with the annual literacy plan by June 15.
82.22(b) Starting in the 2024-2025 school year, district staff, contractors, and volunteers
82.23external partners offering literacy supports in schools may only use screeners that have been
82.24approved by the Department of Education.
82.25EFFECTIVE DATE.This section is effective July 1, 2025.

82.26    Sec. 13. Minnesota Statutes 2024, section 120B.123, subdivision 5, is amended to read:
82.27    Subd. 5. Professional development. (a) A district must provide training from a menu
82.28of approved evidence-based training programs to the following teachers and staff by July
82.291, 2026:
82.30(1) reading intervention teachers working with students in kindergarten through grade
82.3112;
83.1(2) all classroom teachers of students in kindergarten through grade 3 and children in
83.2prekindergarten programs;
83.3(3) kindergarten through grade 12 special education teachers responsible for foundational
83.4reading skills instruction;
83.5(4) curriculum directors;
83.6(5) instructional support staff, contractors, and volunteers who assist in providing Tier
83.72 interventions;
83.8(6) employees who select literacy instructional materials for a district; and
83.9(7) teachers licensed to teach English to multilingual learners.
83.10(b) A district must provide training from a menu of approved evidence-based training
83.11programs to the following teachers by July 1, 2027:
83.12(1) teachers who provide reading instruction to students in grades 4 to 12; and
83.13(2) teachers who provide instruction to students in a state-approved alternative program.
83.14(c) The commissioner of education may grant a district an extension to the deadlines in
83.15this subdivision.
83.16(d) Training provided by a department-approved certified trained facilitator the following
83.17may satisfy the professional development requirements under this subdivision.:
83.18(1) a certified trained facilitator; or
83.19(2) a training program that the department has determined meets the professional
83.20development requirements under the Read Act.
83.21(e) For the 2024-2025 and 2025-2026 school year years only, the hours of instruction
83.22requirement under section 120A.41 for students in an elementary and secondary school, as
83.23defined in section 120A.05, subdivision subdivisions 9 and 13, is reduced by 5-1/2 hours
83.24for a district that enters into an agreement with the exclusive representative of the teachers
83.25that requires teachers to receive at least 5-1/2 hours of approved evidence-based training
83.26required under this subdivision, on a day when other students in the district receive
83.27instruction. If a charter school's teachers are not represented by an exclusive representative,
83.28the charter school may reduce the number of instructional hours for students in an elementary
83.29and secondary school, as defined in section 120A.05, subdivision subdivisions 9 and 13,
83.30by 5-1/2 hours after consulting with its teachers in order to provide teachers with at least
83.315-1/2 hours of evidence-based training required under this subdivision on a day when other
84.1students receive instruction. The hours of instruction reduction for secondary school students
84.2is applicable only for the 2025-2026 school year.

84.3    Sec. 14. Minnesota Statutes 2024, section 120B.123, subdivision 7, is amended to read:
84.4    Subd. 7. Department of Education. (a) By July 1, 2023, the department must make
84.5available to districts a list of approved evidence-based screeners in accordance with section
84.6120B.12. A district must use an approved screener to assess students' mastery of foundational
84.7reading skills in accordance with section 120B.12.
84.8(b) The Department of Education must partner with CAREI as required under section
84.9120B.124 to approve professional development programs, subject to final determination by
84.10the department. After the implementation partnership under section 120B.124 ends, the
84.11department must continue to regularly provide districts with information about professional
84.12development opportunities available throughout the state on reading instruction that is
84.13evidence-based.
84.14(c) The department and CAREI must identify training required for a literacy lead and
84.15literacy specialist employed by a district or Minnesota service cooperatives.
84.16(d) The department must employ one or more literacy specialists to provide support to
84.17districts implementing the Read Act and coordinate duties assigned to the department under
84.18the Read Act. The literacy specialist must work on state efforts to improve literacy tracking
84.19and implementation.
84.20(e) The department must develop a template for a local literacy plan in accordance with
84.21section 120B.12, subdivision 4a.
84.22(f) The department must partner with CAREI as required under section 120B.124 to
84.23approve literacy intervention models by June 30, 2025, subject to final determination by
84.24the department. The department must make a list of the 15 approved evidence-based
84.25intervention models available to districts as they are approved by CAREI, starting November
84.261, 2025. Upon approval of the evidence-based intervention models, the department must
84.27ensure the models are reviewed by a contracted third party for culturally responsive guidance
84.28and materials, and make those findings available to districts once the review process is
84.29complete. The department must notify districts of the two-step review process for all materials
84.30approved under the Read Act for effectiveness as evidence-based structured literacy, and
84.31for cultural responsiveness. The department may identify additional literacy intervention
84.32models after the partnership with CAREI has ended.
85.1(g) The department and CAREI must provide ongoing coaching, mentoring, and support
85.2to certified trained facilitators.
85.3(h) CAREI must complete all requirements under paragraphs (a) to (g) by June 30, 2025.
85.4Starting July 1, 2025, the department must complete any ongoing activities required under
85.5this subdivision without assistance from CAREI.
85.6EFFECTIVE DATE.This section is effective the day following final enactment.

85.7    Sec. 15. Minnesota Statutes 2024, section 120B.123, is amended by adding a subdivision
85.8to read:
85.9    Subd. 8. Dual language immersion programs. (a) The Department of Education must:
85.10(1) develop and issue guidance to district language immersion programs on screeners;
85.11(2) identify materials available in programs' target languages to provide instruction in
85.12foundational reading skills and an instrument for evaluating alignment to the science of
85.13reading;
85.14(3) identify professional development opportunities in programs' target languages on
85.15providing instruction in foundational reading skills aligned to the science of reading; and
85.16(4) make recommendations on how districts can support the transfer of literacy skills
85.17from the target language to English.
85.18(b) The department must post the guidance, list of materials and professional development
85.19opportunities, and recommendations on its website.

85.20    Sec. 16. Minnesota Statutes 2024, section 120B.124, subdivision 1, is amended to read:
85.21    Subdivision 1. Resources. (a) The Department of Education must partner with CAREI
85.22for two years beginning July 1, 2023, until August June 30, 2025, to support implementation
85.23of the Read Act. The department and CAREI must jointly:
85.24(1) identify at least five literacy curricula and supporting materials that are evidence-based
85.25or focused on structured literacy by January 1, 2024, and post a list of the curricula on the
85.26department website. The list must include curricula that use culturally and linguistically
85.27responsive materials that reflect diverse populations and curricula that reflect the experiences
85.28of students from diverse backgrounds, including multilingual learners, biliterate students,
85.29and students who are Black, Indigenous, and People of Color. A district that purchases an
85.30approved curriculum before the cultural responsiveness review is completed is encouraged
85.31to work with the curriculum's publisher to obtain updated materials that are culturally and
86.1linguistically responsive and reflect diverse populations. A district is not required to use an
86.2approved curriculum;
86.3(2) identify at least three professional development programs that focus on the five pillars
86.4of literacy and the components of structured literacy by August 15, 2023, subject to final
86.5approval by the department. The department must post a list of the programs on the
86.6department website. The programs may include a program offered by CAREI. The
86.7requirements of section 16C.08 do not apply to the selection of a provider under this section;
86.8(3) identify evidence-based literacy intervention materials for students in kindergarten
86.9through grade 12;
86.10(4) develop an evidence-based literacy lead training and coaching program that trains
86.11and supports literacy specialists throughout Minnesota to support schools' efforts in screening,
86.12measuring growth, monitoring progress, and implementing interventions in accordance with
86.13subdivision 1. Literacy lead training must include instruction on how to train
86.14paraprofessionals and volunteers that provide Tier 2 interventions on evidence-based literacy
86.15intervention;
86.16(5) identify measures of foundational literacy skills and mastery that a district must
86.17report on a local literacy plan;
86.18(6) provide guidance to districts about best practices in literacy instruction, and practices
86.19that are not evidence-based;
86.20(7) develop MTSS model plans that districts may adopt to support efforts to screen,
86.21identify, intervene, and monitor the progress of students not reading at grade level;
86.22(8) ensure that teacher professional development options and MTSS framework trainings
86.23are geographically equitable by supporting trainings through the regional service
86.24cooperatives;
86.25(9) develop a coaching and mentorship program for certified trained facilitators based
86.26on the previously approved trainings; and
86.27(10) identify at least 15 evidence-based literacy intervention models by November 1
86.28June 30, 2025, and post a list of the interventions on the department website. A district is
86.29not required to use an approved intervention model.
86.30(b) The department must contract with a third party to develop culturally and linguistically
86.31responsive supplemental materials and guidance for the approved literacy curricula to meet
86.32the culturally and linguistically responsive standards under paragraph (a), clause (1).
87.1(c) The department must post on its website the rubric used to evaluate curriculum under
87.2this subdivision and how each curriculum reviewed was evaluated under the rubric. The
87.3department must also identify any curriculum that was not approved based on any criteria
87.4other than alignment to evidence-based structured literacy practices.
87.5EFFECTIVE DATE.This section is effective the day following final enactment.

87.6    Sec. 17. Minnesota Statutes 2024, section 120B.124, subdivision 5, is amended to read:
87.7    Subd. 5. Ongoing review of literacy materials. The department may partner with one
87.8or more institutions of higher education to conduct independent and objective reviews of
87.9curriculum and intervention materials. The department must determine whether it will
87.10partner with an institution of higher education to conduct ongoing reviews of literacy
87.11materials by June 1, 2026. A publisher may submit curriculum or intervention materials for
87.12review. The publisher is responsible for paying the cost of the review directly to the institution
87.13of higher education. The review must use the rubric used a rubric based on the science of
87.14reading to approve curriculum under subdivision 1 and post the rubric on the department
87.15website. The department and institution of higher education may approve the curriculum
87.16or intervention materials if they determine that the curriculum or intervention materials are
87.17evidence-based, focused on structured literacy, culturally and linguistically responsive, and
87.18reflect diverse populations. The department must add the approved curriculum or intervention
87.19materials to the list of curricula and materials approved under the Read Act.
87.20EFFECTIVE DATE.This section is effective July 1, 2025.

87.21    Sec. 18. Minnesota Statutes 2024, section 120B.124, subdivision 6, is amended to read:
87.22    Subd. 6. Comprehensive review of literacy materials. Starting in 2033, the department
87.23and an institution of higher education may partner to conduct a comprehensive review of
87.24curriculum and intervention materials to identify literacy curriculum and, supporting
87.25materials, and intervention materials that are evidence-based, focused on structured literacy,
87.26based on the science of reading, culturally and linguistically responsive, and reflect diverse
87.27populations. The department must post on its website the rubrics used to evaluate curriculum
87.28and intervention materials. The department must revise the list of approved curriculum and
87.29supporting materials, and intervention materials based on the findings of the review.
87.30EFFECTIVE DATE.This section is effective July 1, 2025.

88.1    Sec. 19. Minnesota Statutes 2024, section 120B.124, is amended by adding a subdivision
88.2to read:
88.3    Subd. 7. Partnership expiration. The partnership between the department and CAREI
88.4expires June 30, 2025. Starting July 1, 2025, the department must complete any duties
88.5provided under this section without participation by CAREI.
88.6EFFECTIVE DATE.This section is effective the day following final enactment.

88.7    Sec. 20. Minnesota Statutes 2024, section 122A.091, subdivision 1, is amended to read:
88.8    Subdivision 1. Teacher and administrator preparation and performance data;
88.9report. (a) The Professional Educator Licensing and Standards Board and the Board of
88.10School Administrators, in cooperation with board-approved teacher or administrator
88.11preparation programs, annually must collect and report summary data on teacher and
88.12administrator preparation and performance outcomes, consistent with this subdivision. The
88.13Professional Educator Licensing and Standards Board and the Board of School Administrators
88.14annually by July 1 must update and post the reported summary preparation and performance
88.15data on teachers and administrators from the preceding school years on their respective
88.16websites.
88.17(b) Publicly reported summary data on teacher preparation providers must include:
88.18(1) summary data on teacher educator qualifications and their years of experience either
88.19as birth through grade 12 classroom teachers or school administrators;
88.20(2) the current number and percentage of enrolled candidates who entered the program
88.21through a transfer pathway disaggregated by race, except when disaggregation would not
88.22yield statistically reliable results or would reveal personally identifiable information about
88.23an individual;
88.24(3) the current number and percentage of program completers by program who received
88.25a Tier 3 or Tier 4 license disaggregated by race, except when disaggregation would not
88.26yield statistically reliable results or would reveal personally identifiable information about
88.27an individual;
88.28(4) the current number and percentage of program completers who entered the program
88.29through a transfer pathway and received a Tier 3 or Tier 4 license disaggregated by race,
88.30except when disaggregation would not yield statistically reliable results or would reveal
88.31personally identifiable information about an individual;
89.1(5) the current number and percentage of program completers who were hired to teach
89.2full time in their licensure field in a Minnesota district or school in the preceding year
89.3disaggregated by race, except when disaggregation would not yield statistically reliable
89.4results or would reveal personally identifiable information about an individual;
89.5(6) the current number and percentage of program completers who entered the program
89.6through a transfer pathway and who were hired to teach full time in their licensure field in
89.7a Minnesota district or school in the preceding year disaggregated by race, except when
89.8disaggregation would not yield statistically reliable results or would reveal personally
89.9identifiable information about an individual;
89.10(7) board-adopted survey results measuring initial licensure program quality and structure
89.11in the preceding school year disaggregated by race, except when disaggregation would not
89.12yield statistically reliable results or would reveal personally identifiable information about
89.13an individual;
89.14(8) board-adopted survey results from school principals or supervisors on initial licensure
89.15program quality and structure; and
89.16(9) the number and percentage of program completers who met or exceeded the state
89.17threshold score on the board-adopted teacher performance assessment required under section
89.18122A.185.
89.19Program reporting must be consistent with subdivision 2.
89.20(c) Publicly reported summary data on administrator preparation programs approved by
89.21the Board of School Administrators must include:
89.22(1) summary data on faculty qualifications, including at least the content areas of faculty
89.23undergraduate and graduate degrees and the years of experience either as kindergarten
89.24through grade 12 classroom teachers or school administrators;
89.25(2) the average time program graduates in the preceding year needed to complete the
89.26program;
89.27(3) the current number and percentage of students who graduated, received a standard
89.28Minnesota administrator license, and were employed as an administrator in a Minnesota
89.29school district or school in the preceding year disaggregated by race, except when
89.30disaggregation would not yield statistically reliable results or would reveal personally
89.31identifiable information about an individual;
89.32(4) the number of credits by graduate program that students in the preceding school year
89.33needed to complete to graduate;
90.1(5) survey results measuring student, graduate, and employer satisfaction with the
90.2program in the preceding school year disaggregated by race, except when disaggregation
90.3would not yield statistically reliable results or would reveal personally identifiable
90.4information about an individual; and
90.5(6) information under subdivision 3, paragraphs (c) and (d).
90.6Program reporting must be consistent with section 122A.14, subdivision 10.
90.7EFFECTIVE DATE.This section is effective July 1, 2025.

90.8    Sec. 21. Minnesota Statutes 2024, section 122A.092, subdivision 5, is amended to read:
90.9    Subd. 5. Reading strategies. (a) A teacher preparation provider approved by the
90.10Professional Educator Licensing and Standards Board to prepare persons for classroom
90.11teacher licensure must include in its teacher preparation programs evidence-based best
90.12practices in reading focused on the science of reading, consistent with sections 120B.118
90.13to 120B.124, including instruction on phonemic awareness, phonics, vocabulary development,
90.14reading fluency, and reading comprehension. Instruction on reading must enable the licensure
90.15candidate to teach reading in the candidate's content areas. Teacher candidates must be
90.16instructed in using students' native languages as a resource in creating effective differentiated
90.17instructional strategies for English learners developing literacy skills. A teacher preparation
90.18provider also must prepare early childhood and elementary teacher candidates for Tier 3
90.19and Tier 4 teaching licenses under sections 122A.183 and 122A.184, respectively.
90.20(b) Board-approved teacher preparation programs for teachers of elementary education
90.21must require instruction in applying evidence-based, structured literacy reading instruction
90.22programs based on the science of reading that:
90.23(1) teach students to read using foundational knowledge, practices, and strategies
90.24consistent with sections 120B.118 to 120B.124, with emphasis on mastery of foundational
90.25reading skills so that students achieve continuous progress in reading; and
90.26(2) teach specialized instruction in reading strategies, interventions, and remediations
90.27that enable students of all ages and proficiency levels, including multilingual learners and
90.28students demonstrating characteristics of dyslexia, to become proficient readers.
90.29(c) Board-approved teacher preparation programs for teachers of elementary education,
90.30early childhood education, special education, and reading intervention must include
90.31instruction on dyslexia, as defined in section 125A.01, subdivision 2. Teacher preparation
90.32programs may consult with the Department of Education, including the dyslexia specialist
90.33under section 120B.122, to develop instruction under this paragraph. Instruction on dyslexia
91.1must be modeled on practice standards of the International Dyslexia Association, and must
91.2address:
91.3(1) the nature and symptoms of dyslexia;
91.4(2) resources available for students who show characteristics of dyslexia;
91.5(3) evidence-based instructional strategies for students who show characteristics of
91.6dyslexia, including the structured literacy approach; and
91.7(4) outcomes of intervention and lack of intervention for students who show
91.8characteristics of dyslexia.
91.9(d) Nothing in this section limits the authority of a school district to select a school's
91.10reading program or curriculum.
91.11(e) The board must post on its website the rubric or other instrument it uses to evaluate
91.12whether a teacher preparation program includes reading instruction that complies with this
91.13subdivision and is consistent with sections 120B.118 to 120B.124.

91.14    Sec. 22. Minnesota Statutes 2024, section 122A.185, subdivision 1, is amended to read:
91.15    Subdivision 1. Tests. (a) The board must adopt rules requiring applicants for Tier 3 and
91.16Tier 4 licenses to pass an examination or performance assessment of general pedagogical
91.17knowledge and examinations or assessments of licensure field specific content. An applicant
91.18is exempt from the examination requirements if the applicant:
91.19(1) completed a board-approved teacher preparation program;
91.20(2) completed licensure via portfolio pursuant to section 122A.18, subdivision 10, and
91.21the portfolio has been recommended;
91.22(3) obtained national board certification from the National Board for Professional
91.23Teaching Standards; or
91.24(4) completed a state-approved teacher preparation program in another state and passed
91.25licensure examinations in that state, if applicable. The content examination requirement
91.26does not apply if no relevant content exam exists.
91.27(b) The board must adopt rules requiring an applicant for a Tier 3 or Tier 4 license in
91.28elementary education to demonstrate the knowledge, skill, and ability to provide instruction
91.29in foundational reading skills based on the science of reading. An applicant may satisfy this
91.30requirement through one of the following:
91.31(1) a performance assessment;
92.1(2) satisfactory completion of training from a department-approved certified trained
92.2facilitator; or
92.3(3) satisfactory completion of other training that satisfies the professional development
92.4requirements under the Read Act.
92.5(b) (c) All testing centers in the state must provide monthly opportunities for untimed
92.6content and pedagogy examinations. These opportunities must be advertised on the test
92.7registration website. The board must require the exam vendor to provide other equitable
92.8opportunities to pass exams, including: (1) waiving testing fees for test takers who qualify
92.9for federal grants; (2) providing free, multiple, full-length practice tests for each exam and
92.10free, comprehensive study guides on the test registration website; (3) making content and
92.11pedagogy exams available in languages other than English for teachers seeking licensure
92.12to teach in language immersion programs; and (4) providing free, detailed exam results
92.13analysis by test objective to assist applicants who do not pass an exam in identifying areas
92.14for improvement. Any applicant who has not passed a required exam after two attempts
92.15must be allowed to retake the exam, including new versions of the exam, without being
92.16charged an additional fee.

92.17    Sec. 23. Minnesota Statutes 2024, section 124D.42, subdivision 8, is amended to read:
92.18    Subd. 8. Minnesota reading corps program. (a) A Minnesota reading corps program
92.19is established to provide ServeMinnesota AmeriCorps members with a data-based
92.20problem-solving model of literacy instruction to use in helping to train local Head Start
92.21program providers, other prekindergarten program providers, and staff in schools with
92.22students in kindergarten through grade 3 to evaluate and teach early literacy skills, including
92.23evidence-based literacy instruction under sections 120B.118 to 120B.124, to children age
92.243 to grade 3 and interventions for children in kindergarten to grade 3.
92.25(b) Literacy programs under this subdivision must comply with the provisions governing
92.26literacy program goals and data use under section 142D.12, subdivision 3, paragraph (b).
92.27(c) Literacy programs under this subdivision must use a department-approved screener,
92.28evidence-based reading instruction, and interventions focused on structured literacy.
92.29ServeMinnesota must demonstrate to the department that the training AmeriCorps members
92.30receive meets or exceeds the requirements of section 120B.124, subdivision 4, for volunteers.
92.31Minnesota Reading Corps AmeriCorps members are not required to complete the training
92.32under section 120B.24 120B.124, subdivision 4.
93.1(d) The commission must submit a biennial report to the committees of the legislature
93.2with jurisdiction over kindergarten through grade 12 education that records and evaluates
93.3program data to determine the efficacy of the programs under this subdivision.
93.4EFFECTIVE DATE.This section is effective July 1, 2025.

93.5    Sec. 24. Laws 2023, chapter 55, article 3, section 11, subdivision 2, is amended to read:
93.6    Subd. 2. CAREI. (a) To contract with the Center for Applied Research and Educational
93.7Improvement at the University of Minnesota for the Read Act implementation partnership
93.8under section 120B.124:
93.9
$
4,200,000
.....
2024
93.10
$
0
.....
2025
93.11(b) This appropriation is available until June 30, 2026 2025.
93.12(c) The base for fiscal year 2026 and later is $0.
93.13EFFECTIVE DATE.This section is effective the day following final enactment.

93.14    Sec. 25. Laws 2024, chapter 109, article 4, section 19, is amended to read:
93.15    Sec. 19. PROFESSIONAL EDUCATOR LICENSING AND STANDARDS BOARD
93.16READING AUDIT REPORT.
93.17(a) The Professional Educator Licensing and Standards Board must conduct an audit
93.18that evaluates whether and how approved teacher training programs for candidates for the
93.19following licensure areas meet subject matter standards for reading:
93.20(1) early childhood education in accordance with Minnesota Rules, part 8710.3000;
93.21(2) elementary education in accordance with Minnesota Rules, part 8710.3200; and
93.22(3) special education in accordance with Minnesota Rules, part 8710.5000.
93.23(b) The board must submit an initial report with its findings to the legislative committees
93.24with jurisdiction over kindergarten through grade 12 and higher education by January 15,
93.252025, and a final report by August 1, 2026. Each report must:
93.26(1) identify the reading standards for each licensure area; identify how they are aligned
93.27to the requirements of the Read Act, including requirements on evidence-based instruction,
93.28phonemic awareness, phonics, vocabulary development, reading fluency, and reading
93.29comprehension; and identify how they are aligned to the requirements of Minnesota Statutes,
93.30section 122A.092, subdivision 5;
94.1(2) describe how the board conducted the audit;
94.2(3) identify the results of the audit; and
94.3(4) summarize the program effectiveness reports for continuing approval related to
94.4reading standards reviewed by the board, including the board determinations under Minnesota
94.5Rules, part 8705.2200.
94.6(c) The final report must include the rubric or other instrument used to conduct the audit
94.7and evaluate program alignment with the science of reading.

94.8    Sec. 26. Laws 2024, chapter 115, article 3, section 8, subdivision 5, is amended to read:
94.9    Subd. 5. CAREI paraprofessional and volunteer training. (a) For CAREI to develop
94.10training for paraprofessionals and volunteers that regularly provide Tier 2 literacy
94.11interventions to students in accordance with Minnesota Statutes, section 120B.124,
94.12subdivision 4
:
94.13
$
375,000
.....
2025
94.14(b) This is a onetime appropriation and is available until June 30, 2027 2025.
94.15EFFECTIVE DATE.This section is effective the day following final enactment.

94.16    Sec. 27. APPROPRIATIONS.
94.17    Subdivision 1. Department of Education. The sums indicated in this section are
94.18appropriated from the general fund to the Department of Education for the fiscal years
94.19designated.
94.20    Subd. 2. Department literacy specialist. (a) For a full-time literacy specialist at the
94.21Department of Education:
94.22
$
250,000
.....
2026
94.23
$
250,000
.....
2027
94.24(b) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
94.25    Subd. 3. Read Act implementation. (a) For costs related to Read Act implementation
94.26and the termination of the partnership with the Center for Applied Research and Educational
94.27Improvement at the University of Minnesota:
94.28
$
700,000
.....
2026
94.29
$
175,000
.....
2027
94.30(b) The base for fiscal year 2028 and later is $175,000.
95.1(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.
95.2    Subd. 4. Read Act professional development. (a) For evidence-based training on
95.3structured literacy for teachers working in school districts, charter schools, and service
95.4cooperatives:
95.5
$
7,750,000
.....
2026
95.6
$
7,750,000
.....
2027
95.7(b) Of the amounts in paragraph (a), $6,500,000 each year is for the regional literacy
95.8networks and $1,250,000 each year is for statewide training. The department must use the
95.9funding to develop a data collection system to: (1) collect and analyze the submission of
95.10the local literacy plans and student-level universal screening data; (2) establish the regional
95.11literacy networks as a partnership between the department and the Minnesota service
95.12cooperatives; and (3) administer statewide training based in structured literacy to be offered
95.13free to school districts and charter schools and facilitated by the regional literacy networks
95.14and the department. The regional literacy networks must focus on implementing
95.15comprehensive literacy reform efforts based on structured literacy. Each regional literacy
95.16network must maintain a literacy lead position and maintain a team of trained literacy
95.17coaches to facilitate evidence-based structured literacy training opportunities and ongoing
95.18supports to school districts and charter schools in each region. Funds may be used to provide
95.19training in structured literacy to grade 4 and 5 classroom teachers and literacy professors
95.20from Minnesota institutions of higher education.
95.21(c) The commissioner must report to the legislative committees with jurisdiction over
95.22kindergarten through grade 12 education the number of teachers from each district who
95.23received approved structured literacy training using funds under this subdivision, and the
95.24amounts awarded to districts, charter schools, or service cooperatives.
95.25(d) The regional literacy networks and staff from the Department of Education must
95.26provide ongoing support to school districts, charter schools, and service cooperatives
95.27implementing evidence-based literacy instruction.
95.28(e) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.

96.1ARTICLE 12
96.2OFFICE OF THE INSPECTOR GENERAL

96.3    Section 1. Minnesota Statutes 2024, section 3.971, is amended by adding a subdivision
96.4to read:
96.5    Subd. 3b. Public reports of fraud and misuse. Notwithstanding the classification of
96.6data as not public, the legislative auditor must refer all reports from the public about potential
96.7fraud or misuse, as those terms are defined in chapter 15D, to the inspector general. The
96.8legislative auditor may coordinate reviews and investigations with the inspector general
96.9when coordination conserves resources and does not compromise the reviews or
96.10investigations.

96.11    Sec. 2. Minnesota Statutes 2024, section 15A.0815, subdivision 2, is amended to read:
96.12    Subd. 2. Agency head salaries. The salary for a position listed in this subdivision shall
96.13be determined by the Compensation Council under section 15A.082. The commissioner of
96.14management and budget must publish the salaries on the department's website. This
96.15subdivision applies to the following positions:
96.16    Commissioner of administration;
96.17    Commissioner of agriculture;
96.18    Commissioner of education;
96.19    Commissioner of children, youth, and families;
96.20    Commissioner of commerce;
96.21    Commissioner of corrections;
96.22    Commissioner of health;
96.23    Commissioner, Minnesota Office of Higher Education;
96.24    Commissioner, Minnesota IT Services;
96.25    Commissioner, Housing Finance Agency;
96.26    Commissioner of human rights;
96.27    Commissioner of human services;
96.28    Commissioner of labor and industry;
96.29Commissioner of management and budget;
97.1    Commissioner of natural resources;
97.2    Commissioner, Pollution Control Agency;
97.3    Commissioner of public safety;
97.4    Commissioner of revenue;
97.5    Commissioner of employment and economic development;
97.6    Commissioner of transportation;
97.7    Commissioner of veterans affairs;
97.8    Executive director of the Gambling Control Board;
97.9Executive director of the Minnesota State Lottery;
97.10Executive director of the Office of Cannabis Management;
97.11Inspector general;
97.12    Commissioner of Iron Range resources and rehabilitation;
97.13    Commissioner, Bureau of Mediation Services;
97.14    Ombudsman for mental health and developmental disabilities;
97.15Ombudsperson for corrections;
97.16    Chair, Metropolitan Council;
97.17    Chair, Metropolitan Airports Commission;
97.18    School trust lands director;
97.19    Executive director of pari-mutuel racing;
97.20    Commissioner, Public Utilities Commission;
97.21Chief Executive Officer, Direct Care and Treatment; and
97.22Director of the Office of Emergency Medical Services.

97.23    Sec. 3. [15D.01] OFFICE OF THE INSPECTOR GENERAL.
97.24(a) The inspector general serves as an independent entity responsible for ensuring
97.25accountability, transparency, and integrity in the operations of state agencies and programs.
97.26(b) In exercising the inspector general's powers and duties, the inspector general is in
97.27the executive branch and must operate independently of all state executive branch agencies
98.1and report directly to the governor. The inspector general must not be subject to direction
98.2or interference from any executive or legislative authority.
98.3(c) The inspector general shall direct an Office of the Inspector General.
98.4(d) The inspector general serves in the unclassified service.
98.5EFFECTIVE DATE.This section is effective January 1, 2026.

98.6    Sec. 4. [15D.02] DEFINITIONS.
98.7For the purposes of this chapter, the following terms have the meanings given:
98.8(1) "agency program" means a program funded or administered by a state agency,
98.9including grants and contracts;
98.10(2) "fraud" means an intentional or deceptive act or failure to act to gain an unlawful
98.11benefit;
98.12(3) "investigation" means an audit, review, or inquiry conducted by the inspector general
98.13to detect or prevent fraud or misuse;
98.14(4) "misuse" means improper use of authority or position for personal gain or to cause
98.15harm to others, including the improper use of public resources or programs contrary to their
98.16intended purpose; and
98.17(5) "personal gain" means a benefit to a person; to a person's spouse, parent, child, or
98.18other legal dependent; or to an in-law of the person or the person's child.
98.19EFFECTIVE DATE.This section is effective January 1, 2026.

98.20    Sec. 5. [15D.03] INSPECTOR GENERAL.
98.21    Subdivision 1. Minimum qualifications. (a) To be eligible to be appointed as inspector
98.22general, a candidate must:
98.23(1) have a bachelor's or higher degree in criminal justice, public administration, law, or
98.24a related field;
98.25(2) have at least ten years of professional experience in auditing, investigations, law
98.26enforcement, or a related area;
98.27(3) hold a professional certificate from the Association of Inspectors General, including
98.28Certified Inspector General or Certified Inspector General Investigator; and
99.1(4) demonstrate a commitment to safeguarding the mission of public service and provide
99.2a public disclosure of prior professional opinions, positions, or actions that may influence
99.3the candidate's approach to the role.
99.4(b) Current or former commissioners, agency heads, deputy agency heads, governors,
99.5or legislators are not eligible to serve as inspector general within five years of their service
99.6in those roles. A person elected to an office other than the governor or legislature is not
99.7eligible until ten years after the end of service in an elected position.
99.8    Subd. 2. Appointment. The Legislative Inspector General Advisory Commission will
99.9recommend candidates for inspector general after a competitive process from among eligible
99.10applicants for the position of inspector general. To be recommended by the commission, a
99.11candidate must be approved for recommendation by five of the eight members of the
99.12commission. The commission must assess eligible candidates based on qualifications,
99.13including experience in auditing, financial analysis, public administration, law enforcement,
99.14or related fields. The inspector general is appointed by the governor, after consideration of
99.15recommendations from the Legislative Inspector General Advisory Commission, with
99.16confirmation by a vote of three-fifths of the senate. Section 15.066, subdivision 3, does not
99.17apply.
99.18    Subd. 3. Term. The inspector general serves a five-year term and may be appointed to
99.19unlimited additional terms. An appointment to an additional term must be confirmed by a
99.20vote of three-fifths of the senate.
99.21    Subd. 4. Vacancy. The Legislative Inspector General Advisory Commission must provide
99.22recommendations to the governor for appointment to fill a vacancy in the position of the
99.23inspector general within 90 days of a vacancy occurring or within 60 days of being advised
99.24by the inspector general that a vacancy is expected to occur. The governor must appoint an
99.25inspector general within 30 days of receiving recommendations from the Legislative Inspector
99.26General Advisory Commission or within 45 days of a vacancy occurring if the advisory
99.27commission does not provide recommendations within the time allotted for recommendations
99.28under this subdivision.
99.29    Subd. 5. Disclosure. A candidate considered by the Legislative Inspector General
99.30Oversight Commission or selected for appointment by the governor must disclose all political
99.31affiliations, appointments, campaign work, or partisan activities prior to confirmation.
99.32    Subd. 6. Nonpartisanship. The inspector general, and all employees of the office, must
99.33perform duties of the office without regard to partisan preferences or influences. While
99.34serving, the inspector general, and all employees of the office, may not engage in partisan
100.1activities, campaign work, or public political speech, unless protected by the state or United
100.2States Constitution.
100.3    Subd. 7. Conflict of interest; code of ethics. The inspector general and all employees
100.4of the office are public officials for purposes of the conflict of interest and statement of
100.5economic interest requirements in chapter 10A, and are subject to the code of ethics in
100.6section 43A.38, where applicable.
100.7    Subd. 8. Removal. The inspector general may only be removed by the governor before
100.8the expiration of the term for cause after a public hearing conducted by the governor and
100.9with approval of both the senate and the house of representatives.
100.10EFFECTIVE DATE.This section is effective January 1, 2026.

100.11    Sec. 6. [15D.04] POWERS AND DUTIES.
100.12    Subdivision 1. Authorized powers and responsibilities. The inspector general is
100.13authorized and responsible to:
100.14(1) conduct inspections, evaluations, and investigations of state executive branch agencies
100.15and programs according to professional auditing standards to: (i) identify fraud and misuse;
100.16(ii) make recommendations for changes to programs to prevent fraud and misuse; and (iii)
100.17protect the integrity of the use of public funds, data, and systems;
100.18(2) refer matters for civil, criminal, or administrative action to the Office of the Inspector
100.19General Anti-Fraud and Waste Bureau under section 15D.041, the Bureau of Criminal
100.20Apprehension, the attorney general's office, or other appropriate authorities;
100.21(3) recommend legislative or policy changes to improve program efficiency and
100.22effectiveness;
100.23(4) publish reports on completion of an audit or investigation summarizing findings,
100.24recommendations, and outcomes of the inspector general's activities;
100.25(5) investigate any public or private entity that receives public funds to ensure compliance
100.26with applicable laws, proper use of funds, and adherence to program requirements;
100.27(6) submit an annual report summarizing the work of the office to the Legislative
100.28Inspector General Advisory Commission and make the report publicly available by posting
100.29the report on the inspector general's website;
100.30(7) alert relevant commissioners or heads of agencies when the inspector general has a
100.31reasonable suspicion that fraud or misuse is being committed, whether or not the inspector
100.32general is conducting an investigation, as provided in subdivision 3; and
101.1(8) establish and maintain a current exclusion list in a format readily accessible to
101.2agencies that identifies each program and individual for which the inspector general has
101.3obtained a court order to freeze or cease distribution of funds or made a recommendation
101.4under clause (7) to freeze or cease distribution of funds.
101.5    Subd. 2. Relationship to powers and duties of other agencies. (a) The inspector general
101.6has authority to investigate fraud and misuse of public funds across all programs administered
101.7by state agencies.
101.8(b) The inspector general may perform the inspector general's duties and apply the
101.9inspector general's authority without obtaining approval from another agency.
101.10(c) The Department of Human Services has primary responsibility to investigate fraud
101.11in the Medicaid program, but the inspector general has authority to conduct independent
101.12investigations related to the Medicaid program as necessary.
101.13(d) The Department of Children, Youth, and Families has primary responsibility to
101.14investigate fraud in the child care assistance program, but the inspector general has authority
101.15to conduct independent investigations related to the child care assistance program.
101.16(e) The Department of Health has primary responsibility to investigate fraud related to
101.17women, infants, and children (WIC) and food support programs, but the inspector general
101.18has authority to conduct independent investigations related to WIC and food support
101.19programs.
101.20(f) The inspector general has concurrent authority over general compliance reviews,
101.21information technology security audits, or administrative program integrity assessments
101.22that are related to fraud or misuse.
101.23(g) The inspector general must refer all reports from the public about potential fraud or
101.24misuse to the legislative auditor, and to the commissioner of human services for reports
101.25related to Medicaid. The inspector general may coordinate investigations with the legislative
101.26auditor, and the commissioner of human services for investigations related to Medicaid,
101.27when coordination conserves resources and does not compromise an investigation.
101.28(h) The Department of Information Technology Services shall provide services to the
101.29Office of the Inspector General, under a managed services contract, according to section
101.3016E.016.
101.31    Subd. 3. Alerting agency of issue; seeking a court order to freeze funds. (a) If the
101.32agency does not have primary investigative authority under subdivision 2, the inspector
101.33general shall investigate and, if the inspector general has a reasonable suspicion that fraud
102.1or misuse is occurring, then the inspector general may, at the inspector general's discretion,
102.2alert the commissioner and seek a court order to freeze or stop distribution of public funds,
102.3including any applicable due process and appeal rights, working in cooperation with the
102.4agency where practical and where it would not jeopardize an investigation.
102.5(b) If the agency has primary investigative authority under subdivision 2 but the inspector
102.6general is not satisfied that the agency's internal investigation is adequate or proceeding
102.7quickly enough, the inspector general may independently investigate and, if the inspector
102.8general has a reasonable suspicion that fraud or misuse is being committed, may make a
102.9recommendation to the agency to freeze or cease distribution of funds and notify the
102.10appropriate law enforcement agencies.
102.11(c) If a commissioner or head of an agency does not act on a recommendation to freeze
102.12or cease distribution of funds as requested, after reasonable notice and consistent with any
102.13applicable interagency agreements under section 18, unless prohibited by federal
102.14requirements, the inspector general may, at the inspector general's discretion, seek a court
102.15order to freeze or stop distribution of public funds, consistent with applicable due process
102.16and appeal rights.
102.17(d) If public funds are stopped or frozen pursuant to this subdivision, the inspector
102.18general, working with and through the applicable state agency, must ensure that any person
102.19whose public funds are interrupted and who is not implicated in the suspected fraud or
102.20misuse receive notice of their rights related to continued receipt of the public funds, services,
102.21or programs for which they are eligible.
102.22    Subd. 4. Exceptions for federal funding. The inspector general must not comply with
102.23any provision under this section if compliance with the provision would prevent the state
102.24from receiving federal financial participation for the medical assistance program or result
102.25in a lower level of coverage or reduced access to coverage for medical assistance enrollees.
102.26EFFECTIVE DATE.Subdivision 2, paragraph (c), and subdivision 3, paragraphs (b)
102.27and (c), are effective January 1, 2026, or upon federal approval from the Centers for Medicare
102.28and Medicaid Services, whichever is later. The commissioner of human services must notify
102.29the revisor of statutes when the Centers for Medicare and Medicaid Services approve or
102.30deny this section. The remainder of this section is effective January 1, 2026.

102.31    Sec. 7. [15D.041] LAW ENFORCEMENT POWERS.
102.32    Subdivision 1. Authorization. (a) The inspector general may appoint peace officers, as
102.33defined in section 626.84, subdivision 1, paragraph (c), and establish a law enforcement
103.1agency, as defined in section 626.84, subdivision 1, paragraph (f), known as the Office of
103.2the Inspector General Anti-Fraud and Waste Bureau, to conduct statewide investigations,
103.3and to make statewide arrests under sections 629.30 and 629.34. The primary jurisdiction
103.4of the agency is limited to offenses involving fraud, abuse, and any other criminal conduct
103.5within the jurisdiction of the Office of the Inspector General as described in this chapter.
103.6(b) Upon request and at the inspector general's discretion, the bureau may respond to a
103.7law enforcement agency's request to exercise law enforcement duties in cooperation with
103.8the law enforcement agency that has jurisdiction over the particular matter.
103.9    Subd. 2. Arrests and investigations. The initial processing of a person arrested by the
103.10bureau for an offense within its jurisdiction is the responsibility of the bureau unless otherwise
103.11directed by the law enforcement agency with primary jurisdiction. Subsequent investigation
103.12is the responsibility of the bureau unless otherwise directed by the law enforcement agency
103.13with primary jurisdiction. At the request of the primary jurisdiction, the bureau may assist
103.14in a subsequent investigation being carried out by the primary jurisdiction.
103.15    Subd. 3. Policy for notice of investigations. The bureau must develop a policy for
103.16notifying the law enforcement agency with primary jurisdiction when it has initiated
103.17investigation of any person within the jurisdiction of that agency.
103.18    Subd. 4. Chief law enforcement officer. If the inspector general establishes a law
103.19enforcement agency under this section, the inspector general shall appoint a peace officer
103.20employed full time to be the chief law enforcement officer and to be responsible for the
103.21management of the bureau. The chief law enforcement officer shall possess the necessary
103.22police and management experience to manage a law enforcement agency. The chief law
103.23enforcement officer may appoint, discipline, and discharge all employees of the bureau. All
103.24police managerial and supervisory personnel must be full-time employees of the bureau.
103.25Supervisory personnel must be on duty and available any time peace officers of the bureau
103.26are on duty.
103.27    Subd. 5. Compliance; powers and duties. (a) Except as otherwise provided in this
103.28section, the bureau shall comply with all statutes and administrative rules relating to the
103.29operation and management of a law enforcement agency.
103.30(b) The bureau has the powers and duties of a law enforcement agency as provided by
103.31law, including this section. Other powers and duties provided to the inspector general or
103.32the Office of the Inspector General under this chapter do not apply to the bureau.
103.33    Subd. 6. Evidence, documentation, and related materials. If the bureau seeks evidence,
103.34documentation, and related materials pertinent to an investigation, and the matter is located
104.1outside of this state, the bureau may designate representatives, including officials of the
104.2state where the matter is located, to secure the matter or inspect the matter on its behalf.
104.3    Subd. 7. Annual report on activities and cost-effectiveness. The bureau shall maintain
104.4records and information in order to produce an annual report of its activities as may be
104.5prescribed by the inspector general. The inspector general shall report annually to the chairs
104.6and ranking minority members of the house of representatives and senate committees with
104.7jurisdiction over the inspector general as to the activities and the cost-effectiveness of the
104.8bureau.
104.9    Subd. 8. Assignment of peace officers. Regardless of whether a law enforcement agency
104.10is established under this section, the inspector general may enter into memorandums of
104.11understanding with chief law enforcement officers of state and local law enforcement
104.12agencies to allow peace officers from those agencies to be assigned with the Office of the
104.13Inspector General to enforce criminal laws and investigate matters within the jurisdiction
104.14of the office. A peace officer assigned under this subdivision must be a licensed peace
104.15officer as defined in section 626.84, subdivision 1, paragraph (c). Participating officers
104.16remain employees of the same entity that employed them before being assigned under this
104.17subdivision. Participating officers are subject to annual performance reviews conducted by
104.18the entity's operational supervisor. Peace officers assigned under this subdivision have
104.19statewide jurisdiction to conduct criminal investigations and have the same powers of arrest
104.20as those possessed by a sheriff.
104.21    Subd. 9. Data practices. The Office of the Inspector General Anti-Fraud and Waste
104.22Bureau is subject to chapter 13.
104.23EFFECTIVE DATE.This section is effective January 1, 2026.

104.24    Sec. 8. [15D.042] AUXILIARY POWERS.
104.25    Subdivision 1. Subpoena power. In all matters relating to official duties, the inspector
104.26general has the powers possessed by courts of law to issue and have subpoenas served.
104.27    Subd. 2. Inquiry and inspection power; duty to aid inspector general. All public
104.28officials and their deputies and employees, and all corporations, firms, and individuals
104.29having business involving the receipt, disbursement, or custody of public funds shall at all
104.30times:
104.31(1) afford reasonable facilities for examinations by the inspector general;
104.32(2) provide returns and reports required by the inspector general;
105.1(3) attend and answer under oath the inspector general's lawful inquiries;
105.2(4) produce and exhibit all books, accounts, documents, data of any classification, and
105.3property that the inspector general requests to inspect; and
105.4(5) in all things cooperate with the inspector general.
105.5    Subd. 3. Penalties. (a) If a person refuses or neglects to obey any lawful direction of
105.6the inspector general, a deputy or assistant, or withholds any information, book, record,
105.7paper or other document called for by the inspector general for the purpose of examination,
105.8after having been lawfully required by order or subpoena, upon application by the inspector
105.9general, a judge of the district court in the county where the order or subpoena was made
105.10returnable shall compel obedience or punish disobedience as for contempt, as in the case
105.11of a similar order or subpoena issued by the court.
105.12(b) A person who swears falsely concerning any matter stated under oath is guilty of a
105.13gross misdemeanor.

105.14    Sec. 9. [15D.043] IDENTIFICATION OF FRAUD REPORTING TOOL.
105.15(a) The commissioner or other chief executive officer of each agency must prominently
105.16highlight on the agency's website the fraud reporting tools administered by the Office of
105.17the Inspector General and the Office of the Legislative Auditor under chapter 3.
105.18(b) As part of any grant agreement between the state and a nonprofit organization, the
105.19agreement must require the nonprofit organization to prominently highlight on the
105.20organization's website the fraud reporting tools administered by the Office of the Inspector
105.21General, under chapter 15, and the Office of the Legislative Auditor, under chapter 3. The
105.22state agency administering the grant must regularly confirm and document the organization's
105.23compliance with the requirement under this paragraph for the life of the grant agreement.

105.24    Sec. 10. [15D.046] DATA PRACTICES.
105.25    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
105.26the meanings given.
105.27(b) "Confidential data on individuals" has the meaning given in section 13.02, subdivision
105.283.
105.29(c) "Government entity" has the meaning given in section 13.02, subdivision 7a.
105.30(d) "Nonpublic data" has the meaning given in section 13.02, subdivision 9.
105.31(e) "Not public data" has the meaning given in section 13.02, subdivision 8a.
106.1(f) "Private data on individuals" has the meaning given in section 13.02, subdivision 12.
106.2(g) "Protected nonpublic data" has the meaning given in section 13.02, subdivision 13.
106.3    Subd. 2. Government Data Practices Act. The inspector general is a government entity
106.4and is subject to the Government Data Practices Act, chapter 13.
106.5    Subd. 3. Access. In order to perform the duties authorized by this chapter, the inspector
106.6general shall have access to data of any classification, including data classified as not public
106.7data. It is not a violation of chapter 13 or any other statute classifying government data as
106.8not public data if a government entity provides data pursuant to a subpoena issued under
106.9this chapter.
106.10    Subd. 4. Dissemination. The inspector general may disseminate data of any classification,
106.11including not public data, to:
106.12(1) a government entity, other than a law enforcement agency or prosecuting authority,
106.13if the dissemination of the data aids a pending investigation or administrative action;
106.14(2) a law enforcement agency or prosecuting authority if there is reason to believe that
106.15the data are evidence of criminal activity within the agency's or authority's jurisdiction; or
106.16(3) the legislative auditor or commissioner of human services as provided in section
106.1715D.04, subdivision 2, paragraph (g).
106.18    Subd. 5. Data classifications; civil investigations. (a) Notwithstanding any other law,
106.19data relating to a civil investigation conducted under this chapter are confidential data on
106.20individuals or protected nonpublic data while the investigation is active. Whether a civil
106.21investigation is active shall be determined by the inspector general.
106.22(b) Data relating to a civil investigation conducted under this chapter become public
106.23data upon the inspector general's completion of the investigation, unless:
106.24(1) the release of the data would jeopardize another active investigation by the inspector
106.25general or another government entity;
106.26(2) the inspector general reasonably believes the data will be used in litigation related
106.27to any civil, criminal, or administrative actions, including reconsideration or appeal of any
106.28such action; or
106.29(3) the data are classified as not public under another statute or paragraph (e).
106.30(c) Data subject to paragraph (b), clause (2), are confidential data on individuals or
106.31protected nonpublic data and become public when the litigation has been completed or the
106.32time period to appeal has expired, or the litigation is no longer being actively pursued.
107.1(d) Unless the data are subject to a more restrictive classification, upon the inspector
107.2general's decision to no longer actively pursue a civil investigation under this chapter, data
107.3relating to a civil investigation are private data on individuals or nonpublic data except the
107.4following data are public:
107.5(1) data relating to the investigation's general description, existence, status, and
107.6disposition; and
107.7(2) data that document the inspector general's work.
107.8(e) Inactive civil investigative data on an individual supplying information for an
107.9investigation that could reasonably be used to determine the individual's identity are private
107.10data on individuals if the information supplied was needed for the investigation and would
107.11not have been provided to the inspector general without an assurance to the individual that
107.12the individual's identity would remain private.
107.13(f) Data relating to a civil investigation conducted under this chapter that are obtained
107.14from an entity that is not a government entity have the same classification that the data
107.15would have if obtained from a government entity.
107.16    Subd. 6. Privileges. Nothing in this section or section 15D.042 requires the disclosure
107.17of documents or information that is legally privileged under statute or other law, including
107.18documents or information subject to section 13.393 or 595.02.
107.19    Subd. 7. Criminal investigations. This section does not apply to criminal investigations
107.20conducted by the Office of the Inspector General Anti-Fraud and Waste Bureau under
107.21section 15D.041.

107.22    Sec. 11. [15D.05] RESOURCES.
107.23    Subdivision 1. Staff. (a) The inspector general may hire and manage staff as necessary
107.24and in accordance with chapter 43A. The inspector general must employ and manage at
107.25least one attorney to serve as legal counsel for the office and to advise the inspector general
107.26on all legal matters relating to the office. Except for the inspector general, the staff in the
107.27Office of the Inspector General shall serve in the classified civil service. Except as provided
107.28in paragraph (b), compensation for employees of the inspector general in the classified
107.29service who are represented by an exclusive representative shall be governed by a collective
107.30bargaining agreement negotiated between the commissioner of management and budget
107.31and the exclusive representative. Compensation for employees of the inspector general in
107.32the classified service who are not represented by an exclusive representative shall be as
107.33provided in the commissioner's plan under section 43A.18, subdivision 2, or by the
108.1managerial plan under section 43A.18, subdivision 3, depending on the employee's job
108.2classification.
108.3(b) Section 15.039, subdivision 7, applies to employees transferred into the Office of
108.4the Inspector General from other offices of inspectors general within the first year following
108.5enactment of chapter 15D.
108.6    Subd. 2. Contracting. The inspector general may contract with external experts to
108.7support the work of the office, subject to section 16C.08.
108.8EFFECTIVE DATE.This section is effective January 1, 2026.

108.9    Sec. 12. [15D.06] REPORTING AND TRANSPARENCY.
108.10    Subdivision 1. Reports. The inspector general must issue public reports detailing
108.11completed audits, investigations, and corrective actions taken.
108.12    Subd. 2. Public tips. The inspector general must maintain a phone line and website for
108.13reporting fraud and misuse that allows the person making the report to remain anonymous.
108.14    Subd. 3. Report; inactive investigations. By December 1, 2026, and each December
108.151 thereafter, the inspector general must submit a report to the legislative auditor and the
108.16chairs and ranking minority members of the legislative committees with jurisdiction over
108.17state government and data practices regarding all investigations the inspector general did
108.18not open after receiving a tip or complaint or decided to no longer actively pursue for the
108.19preceding calendar year. The report must include, at a minimum, summary data as defined
108.20in section 13.02, subdivision 19, for:
108.21(1) all complaints or tips received;
108.22(2) the type of allegation;
108.23(3) if the complaint or tip was not frivolous, the reason that the inspector general did
108.24not open an investigation or decided to no longer pursue the investigation; and
108.25(4) referrals to other agencies or the legislative auditor.
108.26EFFECTIVE DATE.This section is effective January 1, 2026.

108.27    Sec. 13. [15D.07] PROFESSIONAL STANDARDS AND REVIEW.
108.28(a) The inspector general's activities must adhere to professional standards as promulgated
108.29by the Association of Inspectors General or other recognized bodies.
109.1(b) The governor may contract for an external quality assurance review of the inspector
109.2general every three years and must make findings from the review public.
109.3EFFECTIVE DATE.This section is effective January 1, 2026.

109.4    Sec. 14. [15D.08] LEGISLATIVE INSPECTOR GENERAL ADVISORY
109.5COMMISSION.
109.6    Subdivision 1. Membership. The Legislative Inspector General Advisory Commission
109.7is comprised of:
109.8(1) two senators appointed by the majority leader of the senate;
109.9(2) two senators appointed by the minority leader of the senate;
109.10(3) two members of the house of representatives appointed by the speaker of the house
109.11of representatives; and
109.12(4) two members of the house of representatives appointed by the minority leader of the
109.13house of representatives.
109.14    Subd. 2. Terms. Members serve at the pleasure of their appointing authorities and each
109.15member serves until a replacement is appointed.
109.16    Subd. 3. Chair. The commission must select a chair after consideration of its members
109.17by January 31 of each odd-numbered year. The chair shall serve until a successor is elected.
109.18The chair must alternate biennially between the senate and the house of representatives.
109.19    Subd. 4. Duties. (a) The Legislative Inspector General Advisory Commission must:
109.20(1) consider applicants for and make recommendations to the governor for the position
109.21of inspector general; and
109.22(2) may conduct hearings to review the work of the inspector general to ensure
109.23impartiality, independence, and effectiveness.
109.24(b) By January 1, 2026, the commission must conduct at least one hearing on, and provide
109.25recommendations to the chairs and ranking minority members of the committees in the
109.26senate and the house of representatives with jurisdiction over commerce and public safety
109.27on, merging the Financial Crimes and Fraud Section of the Department of Public Safety
109.28into the Office of the Inspector General. The recommendations should include proposed
109.29legislation to effectuate the merger.
110.1    Subd. 5. Per diem; expense reimbursement. Members may be compensated for time
110.2spent on commission duties and may be reimbursed for expenses according to the rules of
110.3their respective bodies.
110.4    Subd. 6. Meeting space; staff. The Legislative Coordinating Commission must provide
110.5meeting space and staff to assist the commission in performing its duties.
110.6    Subd. 7. Open meetings. The Legislative Inspector General Advisory Commission is
110.7subject to the requirements in section 3.055.
110.8EFFECTIVE DATE.This section is effective the day following final enactment. The
110.9commission must submit recommendations for an inspector general by January 1, 2026.

110.10    Sec. 15. Minnesota Statutes 2024, section 609.456, subdivision 2, is amended to read:
110.11    Subd. 2. Legislative auditor and inspector general. Whenever an employee or officer
110.12of the state, University of Minnesota, or other organization listed in section 3.971, subdivision
110.136
, discovers evidence of fraud, theft, embezzlement, or other unlawful use of public funds
110.14or property, the employee or officer shall, except when to do so would knowingly impede
110.15or otherwise interfere with an ongoing criminal investigation, promptly report in writing to
110.16the legislative auditor or inspector general a detailed description of the alleged incident or
110.17incidents.

110.18    Sec. 16. OFFICE OF THE INSPECTOR GENERAL ESTABLISHMENT AND
110.19TRANSITION.
110.20    Subdivision 1. Appointment. Notwithstanding Minnesota Statutes, section 15D.03,
110.21subdivision 4, by January 1, 2026, the Legislative Inspector General Advisory Commission
110.22must make recommendations for appointment of an inspector general under Minnesota
110.23Statutes, section 15D.03. By February 1, 2026, the governor must appoint an inspector
110.24general from among the recommended candidates.
110.25    Subd. 2. Operational. By September 1, 2026, the Office of the Inspector General must
110.26be fully operational.
110.27    Subd. 3. Transition of employees. (a) Before September 1, 2026, all officers and
110.28employees employed in an office of inspector general for a state agency shall transition to
110.29employment under the Office of the Inspector General under Minnesota Statutes, chapter
110.3015D, except as specified in subdivision 6.
110.31(b) The following protections shall apply to employees who are transferred to the Office
110.32of the Inspector General under Minnesota Statutes, chapter 15D, from state agencies:
111.1(1) no transferred employee shall have their employment status and job classification
111.2altered as a result of the transfer;
111.3(2) transferred employees who were represented by an exclusive representative prior to
111.4the transfer shall continue to be represented by the same exclusive representative after the
111.5transfer;
111.6(3) any applicable collective bargaining agreements with exclusive representatives shall
111.7continue in full force and effect for transferred employees after the transfer while the
111.8agreement remains in effect;
111.9(4) when an employee in a temporary unclassified position is transferred to the Office
111.10of the Inspector General, the total length of time that the employee has served in the
111.11appointment must include all time served in the appointment at the transferring agency and
111.12the time served in the appointment at the Office of the Inspector General. An employee in
111.13a temporary unclassified position who was hired by a transferring agency through an open
111.14competitive selection process under a policy enacted by the commissioner of management
111.15and budget is considered to have been hired through a competitive selection process after
111.16the transfer;
111.17(5) the state must meet and negotiate with the exclusive representatives of the transferred
111.18employees about proposed changes to the transferred employees' terms and conditions of
111.19employment to the extent that the proposed changes are not addressed in the applicable
111.20collective bargaining agreement; and
111.21(6) if the state transfers ownership or control of any facilities, services, or operations of
111.22the Office of the Inspector General to another private or public entity by subcontracting,
111.23sale, assignment, lease, or other transfer, the state must require as a written condition of the
111.24transfer of ownership or control the following:
111.25(i) employees who perform work in the facilities, services, or operations must be offered
111.26employment with the entity acquiring ownership or control before the entity offers
111.27employment to any individual who was not employed by the transferring agency at the time
111.28of the transfer; and
111.29(ii) the wage and benefit standards of the transferred employees must not be reduced by
111.30the entity acquiring ownership or control through the expiration of the collective bargaining
111.31agreement in effect at the time of the transfer or for a period of two years after the transfer,
111.32whichever is longer.
112.1There is no liability on the part of, and no cause of action arises against, the state of
112.2Minnesota or its officers or agents for any action or inaction of any entity acquiring ownership
112.3or control of any facilities, services, or operations of the department.
112.4    Subd. 4. Assets. Before September 1, 2026, assets and unused appropriations for existing
112.5offices of inspectors general shall be transferred to the Office of the Inspector General under
112.6Minnesota Statutes, chapter 15D, except as specified in subdivision 6.
112.7    Subd. 5. Office space. The commissioner of administration must provide office space
112.8on the Capitol Mall complex for the Office of the Inspector General under Minnesota
112.9Statutes, chapter 15D, under a rental agreement.
112.10    Subd. 6. Exceptions. (a) Positions, and assets and unused appropriations related to these
112.11positions, in the Department of Human Services will not transfer to the Office of the Inspector
112.12General.
112.13(b) No employees or positions in the Department of Corrections are transferred under
112.14this section.
112.15(c) No employees or positions in the student maltreatment program of the Department
112.16of Education or other Department of Education employees or positions dedicated to student
112.17maltreatment investigations under Minnesota Statutes, chapter 260E, are transferred under
112.18this section.
112.19(d) No employees or positions in the Department of Children, Youth, and Families will
112.20transfer to the Office of the Inspector General.
112.21EFFECTIVE DATE.This section is effective January 1, 2026.

112.22    Sec. 17. LEGISLATIVE INSPECTOR GENERAL ADVISORY COMMISSION;
112.23INITIAL APPOINTMENTS AND FIRST MEETING.
112.24    Subdivision 1. Initial appointments. Appointing authorities must make appointments
112.25to the Legislative Inspector General Advisory Commission by August 1, 2025.
112.26    Subd. 2. First meeting. The senate majority leader must designate one member of the
112.27Legislative Inspector General Advisory Commission to convene the first meeting of the
112.28Legislative Inspector General Advisory Commission by September 15, 2025.
112.29    Subd. 3. Chair. The Legislative Inspector General Advisory Commission must elect a
112.30chair from among its senate members at its first meeting. The first chair shall serve until a
112.31successor is selected at the start of the next biennium as provided in Minnesota Statutes,
112.32section 15D.08, subdivision 3.

113.1    Sec. 18. INTERAGENCY AGREEMENTS.
113.2(a) By December 31, 2026, the Office of the Inspector General must enter into an
113.3interagency agreement with the Department of Human Services. The agreement must not
113.4preclude the agency from performing, or give the inspector general authority to take actions
113.5that would interfere with the agency's ability to perform, duties required as a condition for
113.6securing or maintaining federal funding. The interagency agreement must include a clause
113.7on cost-sharing for investigations that may require multiagency coordination and a clause
113.8that details what process will be followed if a joint investigation is required. The interagency
113.9agreement must not limit the inspector general's authority or authorized powers and
113.10responsibilities. The agency and the inspector general may coordinate investigative efforts
113.11as necessary or practical, but an interagency agreement must not diminish, delay, or restrict
113.12the inspector general's ability to investigate fraud and misuse when an independent
113.13investigation is pursued.
113.14(b) By December 31, 2026, the Office of the Inspector General must enter into an
113.15interagency agreement with the Department of Children, Youth, and Families. The
113.16interagency agreement must include a clause on cost-sharing for investigations that may
113.17require multiagency coordination and a clause that details what process will be followed if
113.18a joint investigation is required. The interagency agreement must not limit the inspector
113.19general's authority or authorized powers and responsibilities. The agency and the inspector
113.20general may coordinate investigative efforts as necessary or practical, but an interagency
113.21agreement must not diminish, delay, or restrict the inspector general's ability to investigate
113.22fraud and misuse when an independent investigation is pursued.
113.23(c) By December 31, 2026, the Office of the Inspector General must enter into an
113.24interagency agreement with the Department of Health. The interagency agreement must
113.25include a clause on cost-sharing for investigations that may require multiagency coordination
113.26and a clause that details what process will be followed if a joint investigation is required.
113.27The interagency agreement must not limit the inspector general's authority or authorized
113.28powers and responsibilities. The agency and the inspector general may coordinate
113.29investigative efforts as necessary or practical, but an interagency agreement must not
113.30diminish, delay, or restrict the inspector general's ability to investigate fraud and misuse
113.31when an independent investigation is pursued.
113.32(d) As soon as practicable after January 1, 2026, the Office of the Inspector General
113.33must enter into an interagency agreement with the Department of Education. The interagency
113.34agreement must not limit the inspector general's authority or authorized powers and
113.35responsibilities. Effective immediately, nothing in Minnesota Statutes, chapter 15D,
114.1authorizes any sanction by the commissioner or inspector general that reduces, pauses, or
114.2otherwise interrupts state or federal aid to a school district; charter school; cooperative unit
114.3as defined by Minnesota Statutes, section 123A.24, subdivision 2; or any library, library
114.4system, or library district defined in Minnesota Statutes, section 134.001.
114.5EFFECTIVE DATE.Paragraph (a) is effective January 1, 2026, or upon federal approval
114.6from the Centers for Medicare and Medicaid Services, whichever is later. The commissioner
114.7of human services must notify the revisor of statutes when the Centers for Medicare and
114.8Medicaid Services approve or deny this section. The remainder of this section is effective
114.9January 1, 2026.

114.10    Sec. 19. APPROPRIATIONS.
114.11(a) $644,000 in fiscal year 2026 and $430,000 in fiscal year 2027 are appropriated from
114.12the general fund to the commissioner of administration to establish the Office of the Inspector
114.13General. This is a onetime appropriation.
114.14(b) $3,034,000 in fiscal year 2026 and $4,432,000 in fiscal year 2027 are appropriated
114.15from the general fund to the Office of the Inspector General for purposes of this act. The
114.16base for this appropriation is $4,439,000 in fiscal year 2028 and $4,474,000 in fiscal year
114.172029 and each fiscal year thereafter. The commissioner of administration, in consultation
114.18with the commissioner of management and budget, may transfer amounts in fiscal year
114.192026 and fiscal year 2027 to the commissioner of administration for office build out, cost
114.20of space, office equipment, and other costs directly related to the establishment of the office.

114.21ARTICLE 13
114.22CONFORMING ITEMS AND REPEALERS

114.23    Section 1. Minnesota Statutes 2024, section 13.82, subdivision 1, is amended to read:
114.24    Subdivision 1. Application. This section shall apply to agencies which carry on a law
114.25enforcement function, including but not limited to municipal police departments, county
114.26sheriff departments, fire departments, the Bureau of Criminal Apprehension, the Minnesota
114.27State Patrol, the Board of Peace Officer Standards and Training, the Department of
114.28Commerce, the Office of the Inspector General Anti-Fraud and Waste Bureau, and county
114.29human service agency client and provider fraud investigation, prevention, and control units
114.30operated or supervised by the Department of Human Services.
114.31EFFECTIVE DATE.This section is effective January 1, 2026.

115.1    Sec. 2. Minnesota Statutes 2024, section 127A.21, subdivision 1a, is amended to read:
115.2    Subd. 1a. Definitions. (a) For purposes of this section, the following terms have the
115.3meanings given.
115.4(b) "Abuse" means actions that may, directly or indirectly, result in unnecessary costs
115.5to department programs. Abuse may involve paying for items or services when there is no
115.6legal entitlement to that payment.
115.7(c) (b) "Department program" means a program funded by the Department of Education
115.8that involves the transfer or disbursement of public funds or other resources to a program
115.9participant. "Department program" includes state and federal aids or grants received by a
115.10school district or charter school or other program participant.
115.11(c) "Inspector general" refers to the inspector general as defined in section 15D.01.
115.12(d) "Fraud" means an intentional or deliberate act to deprive another of property or
115.13money or to acquire property or money by deception or other unfair means. Fraud includes
115.14intentionally submitting false information to the department for the purpose of obtaining a
115.15greater compensation or benefit than that to which the person is legally entitled. Fraud also
115.16includes failure to correct errors in the maintenance of records in a timely manner after a
115.17request by the department.
115.18(e) "Investigation" means an audit, investigation, proceeding, or inquiry by the Office
115.19of the Inspector General related to a program participant in a department program.
115.20(f) (d) "Program participant" means any entity or person, including associated persons,
115.21that receives, disburses, or has custody of funds or other resources transferred or disbursed
115.22under a department program.
115.23(g) "Waste" means practices that, directly or indirectly, result in unnecessary costs to
115.24department programs, such as misusing resources.
115.25(h) For purposes of this section, neither "fraud," "waste," nor "abuse" includes decisions
115.26on instruction, curriculum, personnel, or other discretionary policy decisions made by a
115.27school district, charter school, cooperative unit as defined by section 123A.24, subdivision
115.282, or any library, library system, or library district defined in section 134.001.

115.29    Sec. 3. Minnesota Statutes 2024, section 127A.21, subdivision 5, is amended to read:
115.30    Subd. 5. Sanctions; appeal. (a) This subdivision does not authorize any sanction that
115.31reduces, pauses, or otherwise interrupts state or federal aid to a school district, charter school,
116.1cooperative unit as defined by section 123A.24, subdivision 2, or any library, library system,
116.2or library district defined in section 134.001.
116.3(b) The inspector general may recommend that the commissioner impose appropriate
116.4temporary sanctions, including withholding of payments under the department program, on
116.5a program participant pending an investigation by the Office of the Inspector General if:
116.6(1) during the course of an investigation, the Office of the Inspector General finds credible
116.7indicia of fraud, waste, or abuse by the program participant;
116.8(2) (1) there has been a criminal, civil, or administrative adjudication of fraud, waste,
116.9or abuse or misuse against the program participant in Minnesota or in another state or
116.10jurisdiction; or
116.11(3) the program participant was receiving funds under any contract or registered in any
116.12program administered by another Minnesota state agency, a government agency in another
116.13state, or a federal agency, and was excluded from that contract or program for reasons
116.14credibly indicating fraud, waste, or abuse by the program participant; or
116.15(4) (2) the program participant has a pattern of noncompliance with an investigation.
116.16(c) If an investigation finds, by a preponderance of the evidence, fraud, waste, or abuse
116.17misuse by a program participant, the inspector general may, after reviewing all facts and
116.18evidence and when acting judiciously on a case-by-case basis, recommend that the
116.19commissioner impose appropriate sanctions on the program participant.
116.20(d) Unless prohibited by law, the commissioner has the authority to implement
116.21recommendations by the inspector general, including imposing appropriate sanctions,
116.22temporarily or otherwise, on a program participant. Sanctions may include ending program
116.23participation, stopping disbursement of funds or resources, monetary recovery, and
116.24termination of department contracts with the participant for any current or future department
116.25program or contract. A sanction may be imposed for up to the longest period permitted by
116.26state or federal law. Sanctions authorized under this subdivision are in addition to other
116.27remedies and penalties available under law.
116.28(e) If the commissioner imposes sanctions on a program participant under this subdivision,
116.29the commissioner must notify the participant in writing within seven business days of
116.30imposing the sanction, unless requested in writing by a law enforcement agency to
116.31temporarily delay issuing the notice to prevent disruption of an ongoing law enforcement
116.32agency investigation. A notice of sanction must state:
116.33(1) the sanction being imposed;
117.1(2) the general allegations that form the basis for the sanction;
117.2(3) the duration of the sanction;
117.3(4) the department programs to which the sanction applies; and
117.4(5) how the program participant may appeal the sanction pursuant to paragraph (f) (e).
117.5(f) A program participant sanctioned under this subdivision may, within 30 days after
117.6the date the notice of sanction was mailed to the participant, appeal the determination by
117.7requesting in writing that the commissioner initiate a contested case proceeding under
117.8chapter 14. The scope of any contested case hearing is limited to the sanction imposed under
117.9this subdivision. An appeal request must specify with particularity each disputed item, the
117.10reason for the dispute, and must include the name and contact information of the person or
117.11entity that may be contacted regarding the appeal.
117.12(g) The commissioner shall lift sanctions imposed under this subdivision if the Office
117.13of the Inspector General notifies the commissioner that it determines there is insufficient
117.14evidence of fraud, waste, or abuse misuse by the program participant. The commissioner
117.15must notify the participant in writing within seven business days of lifting the sanction.

117.16    Sec. 4. Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision to
117.17read:
117.18    Subd. 8. Limits on receiving public funds; prohibition. (a) This subdivision does not
117.19authorize any action that reduces, pauses, or otherwise interrupts state or federal aid to a
117.20school district; charter school; cooperative unit as defined in section 123A.24, subdivision
117.212; or any library, library system, or library district defined in section 134.001.
117.22(b) For purposes of this subdivision, "program participant" includes individuals or persons
117.23who have an ownership interest in, control of, or the ability to control a program participant
117.24in a department program.
117.25(c) If a program participant is excluded from a department program, the commissioner
117.26may:
117.27(1) prohibit the excluded program participant from enrolling in, receiving grant money
117.28from, or registering in any other program administered by the commissioner; and
117.29(2) disenroll or disqualify the excluded program participant from any other program
117.30administered by the commissioner.
118.1(d) If a program participant enrolled, licensed, or receiving funds under any contract or
118.2program administered by a Minnesota state agency or federal agency is excluded from that
118.3program, the inspector general shall notify the commissioner, who may:
118.4(1) prohibit the excluded program participant from enrolling in, becoming licensed,
118.5receiving grant money from, or registering in any other program administered by the
118.6commissioner; and
118.7(2) disenroll or disqualify the excluded program participant from any other program
118.8administered by the commissioner.
118.9(e) The duration of a prohibition, disenrollment, revocation, suspension, or
118.10disqualification under paragraph (c) must last for the longest applicable sanction or
118.11disqualifying period in effect for the program participant permitted by state or federal law.
118.12The duration of a prohibition, disenrollment, revocation, suspension, or disqualification
118.13under paragraph (d) may last up until the longest applicable sanction or disqualifying period
118.14in effect for the program participant as permitted by state or federal law.

118.15    Sec. 5. Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision to
118.16read:
118.17    Subd. 9. Notice. Within five days of taking an action against a program participant under
118.18subdivision 8, paragraph (c) or (d), the commissioner must send notice of the action to the
118.19program participant. The notice must state the:
118.20(1) basis for the action;
118.21(2) effective date of the action;
118.22(3) right to appeal the action; and
118.23(4) requirements and procedures for reinstatement.

118.24    Sec. 6. Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision to
118.25read:
118.26    Subd. 10. Appeal. (a) Upon receipt of a notice under subdivision 9, a program participant
118.27may request a contested case hearing, as defined in section 14.02, subdivision 3, by filing
118.28with the commissioner a written request of appeal. The appeal request must be received by
118.29the commissioner no later than 30 days after the date the notification was mailed to the
118.30program participant.
118.31(b) The appeal request must specify:
119.1(1) each disputed item and the reason for the dispute;
119.2(2) the authority in statute or rule upon which the program participant relies for each
119.3disputed item;
119.4(3) the name and address of the person or entity with whom contacts may be made
119.5regarding the appeal; and
119.6(4) other information required by the commissioner.
119.7(c) Unless a timely and proper appeal is received by the commissioner, the action of the
119.8commissioner shall be considered final and binding on the effective date of the action as
119.9stated in the notice under subdivision 9, clause (2).

119.10    Sec. 7. Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision to
119.11read:
119.12    Subd. 11. Withholding of payments. (a) This subdivision does not authorize withholding
119.13of payments that reduces, pauses, or otherwise interrupts state or federal aid to a school
119.14district; charter school; cooperative unit as defined in section 123A.24, subdivision 2; or
119.15any library, library system, or library district defined in section 134.001.
119.16(b) Except as otherwise provided by state or federal law, the inspector general shall
119.17notify and recommend to the commissioner to withhold payments to a program participant
119.18in any program administered by the commissioner, who shall have the authority to withhold
119.19such payments to the extent permitted under federal law, if the inspector general determines
119.20there is a credible allegation of fraud or misuse for which an investigation is pending for a
119.21program administered by the department, a Minnesota state agency, or a federal agency.
119.22(c) Allegations are considered credible when they have indicia of reliability and the
119.23inspector general has reviewed the evidence and acts on a case-by-case basis. A credible
119.24allegation of fraud is an allegation that has been verified by the commissioner from any
119.25source, including but not limited to:
119.26(1) fraud hotline complaints;
119.27(2) claims data mining; and
119.28(3) patterns identified through provider audits, civil false claims cases, and investigations.
119.29(d) The commissioner must send notice of the withholding of payments within five days
119.30of taking such action. The notice must:
119.31(1) state that payments are being withheld according to this paragraph;
120.1(2) set forth the general allegations as to the reasons for the withholding action, but need
120.2not disclose any specific information concerning an ongoing investigation;
120.3(3) state that the withholding is for a temporary period and cite the circumstances under
120.4which withholding will be terminated; and
120.5(4) inform the program participant of the right to submit written evidence for
120.6consideration by the commissioner.
120.7(e) The withholding of payments shall not continue after the inspector general determines
120.8there is insufficient evidence of fraud by the program participant or after legal proceedings
120.9relating to the alleged fraud are completed, unless the commissioner has sent notice under
120.10subdivision 5 of the intention to take an additional action related to the program participant's
120.11participation in a program administered by the commissioner. If the inspector general
120.12determines there is insufficient evidence of fraud by the program participant or after legal
120.13proceedings relating to the alleged fraud are completed, the inspector general shall notify
120.14the commissioner within ten days of the determination.
120.15(f) The withholding of payments is a temporary action and shall not be subject to appeal
120.16under this subdivision or chapter 14.

120.17    Sec. 8. Minnesota Statutes 2024, section 142A.03, is amended by adding a subdivision to
120.18read:
120.19    Subd. 35. Office of the Inspector General; reports. The commissioner must submit
120.20final investigative reports to the inspector general, serving under section 15D.01, for any
120.21investigation conducted by the commissioner into fraud or misuse, as defined in section
120.2215D.02, within the child care assistance program.

120.23    Sec. 9. Minnesota Statutes 2024, section 142A.12, subdivision 5, is amended to read:
120.24    Subd. 5. Withholding of payments. (a) Except as otherwise provided by state or federal
120.25law, the commissioner may withhold payments to a provider, vendor, individual, associated
120.26individual, or associated entity in any program administered by the commissioner if the
120.27commissioner determines there is a credible allegation of fraud for which an investigation
120.28is pending for a program administered by a Minnesota state or federal agency.
120.29(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation
120.30that has been verified by the commissioner from any source, including but not limited to:
120.31(1) fraud hotline complaints;
121.1(2) claims data mining;
121.2(3) patterns identified through provider audits, civil false claims cases, and law
121.3enforcement investigations; and
121.4(4) court filings and other legal documents, including but not limited to police reports,
121.5complaints, indictments, informations, affidavits, declarations, and search warrants; and
121.6(5) information from the inspector general, including information listed on the inspector
121.7general's exclusion list under section 15D.04, subdivision 1, clause (8).
121.8(c) The commissioner must send notice of the withholding of payments within five days
121.9of taking such action. The notice must:
121.10(1) state that payments are being withheld according to this subdivision;
121.11(2) set forth the general allegations related to the withholding action, except the notice
121.12need not disclose specific information concerning an ongoing investigation;
121.13(3) state that the withholding is for a temporary period and cite the circumstances under
121.14which the withholding will be terminated; and
121.15(4) inform the provider, vendor, individual, associated individual, or associated entity
121.16of the right to submit written evidence to contest the withholding action for consideration
121.17by the commissioner.
121.18(d) If the commissioner withholds payments under this subdivision, the provider, vendor,
121.19individual, associated individual, or associated entity has a right to request administrative
121.20reconsideration. A request for administrative reconsideration must be made in writing, state
121.21with specificity the reasons the payment withholding decision is in error, and include
121.22documents to support the request. Within 60 days from receipt of the request, the
121.23commissioner shall judiciously review allegations, facts, evidence available to the
121.24commissioner, and information submitted by the provider, vendor, individual, associated
121.25individual, or associated entity to determine whether the payment withholding should remain
121.26in place.
121.27(e) The commissioner shall stop withholding payments if the commissioner determines
121.28there is insufficient evidence of fraud by the provider, vendor, individual, associated
121.29individual, or associated entity or when legal proceedings relating to the alleged fraud are
121.30completed, unless the commissioner has sent notice under subdivision 3 to the provider,
121.31vendor, individual, associated individual, or associated entity.
122.1(f) The withholding of payments is a temporary action and is not subject to appeal under
122.2section 256.0451 or chapter 14.

122.3    Sec. 10. Minnesota Statutes 2024, section 144.05, is amended by adding a subdivision to
122.4read:
122.5    Subd. 9. Office of the Inspector General; reports. The commissioner must submit
122.6final investigative reports to the inspector general serving under section 15D.01 for any
122.7investigation conducted by the commissioner into fraud or misuse, as defined in section
122.815D.02, within the special supplemental nutrition program for women, infants, and children.

122.9    Sec. 11. Minnesota Statutes 2024, section 181.932, subdivision 1, is amended to read:
122.10    Subdivision 1. Prohibited action. An employer shall not discharge, discipline, penalize,
122.11interfere with, threaten, restrain, coerce, or otherwise retaliate or discriminate against an
122.12employee regarding the employee's compensation, terms, conditions, location, or privileges
122.13of employment because:
122.14    (1) the employee, or a person acting on behalf of an employee, in good faith, reports a
122.15violation, suspected violation, or planned violation of any federal or state law or common
122.16law or rule adopted pursuant to law to an employer or to any governmental body or law
122.17enforcement official;
122.18    (2) the employee is requested by a public body or office to participate in an investigation,
122.19hearing, inquiry;
122.20    (3) the employee refuses an employer's order to perform an action that the employee
122.21has an objective basis in fact to believe violates any state or federal law or rule or regulation
122.22adopted pursuant to law, and the employee informs the employer that the order is being
122.23refused for that reason;
122.24    (4) the employee, in good faith, reports a situation in which the quality of health care
122.25services provided by a health care facility, organization, or health care provider violates a
122.26standard established by federal or state law or a professionally recognized national clinical
122.27or ethical standard and potentially places the public at risk of harm;
122.28    (5) a public employee communicates the findings of a scientific or technical study that
122.29the employee, in good faith, believes to be truthful and accurate, including reports to a
122.30governmental body or law enforcement official; or
123.1(6) an a public employee in the classified service of state government communicates
123.2information that the public employee, in good faith, believes to be truthful and accurate,
123.3and that relates to state public services, including the financing of state public services, to:
123.4(i) a legislator or the legislative auditor; or
123.5(ii) a constitutional officer.; or
123.6(7) a public employee, in good faith, reports fraud or misuse in programs of a state
123.7agency or political subdivision to the employer, any governmental body, a law enforcement
123.8official, the legislative auditor, a member of the legislature, or a constitutional officer.
123.9The disclosures protected pursuant to this section do not authorize the disclosure of data
123.10otherwise protected by law.

123.11    Sec. 12. Minnesota Statutes 2024, section 245.095, subdivision 5, is amended to read:
123.12    Subd. 5. Withholding of payments. (a) Except as otherwise provided by state or federal
123.13law, the commissioner may withhold payments to a provider, vendor, individual, associated
123.14individual, or associated entity in any program administered by the commissioner if the
123.15commissioner determines there is a credible allegation of fraud for which an investigation
123.16is pending for a program administered by a Minnesota state or federal agency.
123.17(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation
123.18that has been verified by the commissioner from any source, including but not limited to:
123.19(1) fraud hotline complaints;
123.20(2) claims data mining;
123.21(3) patterns identified through provider audits, civil false claims cases, and law
123.22enforcement investigations; and
123.23(4) court filings and other legal documents, including but not limited to police reports,
123.24complaints, indictments, informations, affidavits, declarations, and search warrants; and
123.25(5) information from the inspector general, including information listed on the inspector
123.26general's exclusion list under section 15D.04, subdivision 1, clause (8).
123.27(c) The commissioner must send notice of the withholding of payments within five days
123.28of taking such action. The notice must:
123.29(1) state that payments are being withheld according to this subdivision;
123.30(2) set forth the general allegations related to the withholding action, except the notice
123.31need not disclose specific information concerning an ongoing investigation;
124.1(3) state that the withholding is for a temporary period and cite the circumstances under
124.2which the withholding will be terminated; and
124.3(4) inform the provider, vendor, individual, associated individual, or associated entity
124.4of the right to submit written evidence to contest the withholding action for consideration
124.5by the commissioner.
124.6(d) If the commissioner withholds payments under this subdivision, the provider, vendor,
124.7individual, associated individual, or associated entity has a right to request administrative
124.8reconsideration. A request for administrative reconsideration must be made in writing, state
124.9with specificity the reasons the payment withholding decision is in error, and include
124.10documents to support the request. Within 60 days from receipt of the request, the
124.11commissioner shall judiciously review allegations, facts, evidence available to the
124.12commissioner, and information submitted by the provider, vendor, individual, associated
124.13individual, or associated entity to determine whether the payment withholding should remain
124.14in place.
124.15(e) The commissioner shall stop withholding payments if the commissioner determines
124.16there is insufficient evidence of fraud by the provider, vendor, individual, associated
124.17individual, or associated entity or when legal proceedings relating to the alleged fraud are
124.18completed, unless the commissioner has sent notice under subdivision 3 to the provider,
124.19vendor, individual, associated individual, or associated entity.
124.20(f) The withholding of payments is a temporary action and is not subject to appeal under
124.21section 256.045 or chapter 14.

124.22    Sec. 13. Minnesota Statutes 2024, section 256.01, is amended by adding a subdivision to
124.23read:
124.24    Subd. 44. Office of the Inspector General; reports. The commissioner must submit
124.25final investigative reports to the inspector general, serving under section 15D.01, for any
124.26investigation conducted by the commissioner into fraud or misuse, as defined in section
124.2715D.02, within the Medicaid program.

124.28    Sec. 14. Minnesota Statutes 2024, section 626.84, subdivision 1, is amended to read:
124.29    Subdivision 1. Definitions. For purposes of sections 626.84 to 626.863, the following
124.30terms have the meanings given them:
124.31    (a) "Board" means the Board of Peace Officer Standards and Training.
124.32    (b) "Director" means the executive director of the board.
125.1    (c) "Peace officer" means:
125.2    (1) an employee or an elected or appointed official of a political subdivision or law
125.3enforcement agency who is licensed by the board, charged with the prevention and detection
125.4of crime and the enforcement of the general criminal laws of the state and who has the full
125.5power of arrest, and shall also include the Minnesota State Patrol, agents of the Division of
125.6Alcohol and Gambling Enforcement, state conservation officers, Metropolitan Transit police
125.7officers, Department of Corrections Fugitive Apprehension Unit officers, Department of
125.8Commerce Fraud Bureau Unit officers, Office of the Inspector General Anti-Fraud and
125.9Waste Bureau officers, the statewide coordinator of the Violent Crime Coordinating Council,
125.10and railroad peace officers as authorized by section 219.995 and United States Code, title
125.1149, section 28101; and
125.12    (2) a peace officer who is employed by a law enforcement agency of a federally
125.13recognized tribe, as defined in United States Code, title 25, section 450b(e), and who is
125.14licensed by the board.
125.15    (d) "Part-time peace officer" means an individual licensed by the board whose services
125.16are utilized by law enforcement agencies no more than an average of 20 hours per week,
125.17not including time spent on call when no call to active duty is received, calculated on an
125.18annual basis, who has either full powers of arrest or authorization to carry a firearm while
125.19on active duty. The term shall apply even though the individual receives no compensation
125.20for time spent on active duty, and shall apply irrespective of the title conferred upon the
125.21individual by any law enforcement agency.
125.22    (e) "Reserve officer" means an individual whose services are utilized by a law
125.23enforcement agency to provide supplementary assistance at special events, traffic or crowd
125.24control, and administrative or clerical assistance, and shall include reserve deputies, special
125.25deputies, mounted or unmounted patrols, and all other employees or volunteers performing
125.26reserve officer functions. A reserve officer's duties do not include enforcement of the general
125.27criminal laws of the state, and the officer does not have full powers of arrest or authorization
125.28to carry a firearm on duty.
125.29    (f) "Law enforcement agency" means:
125.30    (1) a unit of state or local government that is authorized by law to grant full powers of
125.31arrest and to charge a person with the duties of preventing and detecting crime and enforcing
125.32the general criminal laws of the state;
125.33    (2) subject to the limitations in section 626.93, a law enforcement agency of a federally
125.34recognized tribe, as defined in United States Code, title 25, section 450b(e); and
126.1    (3) subject to the limitation of section 219.995, a railroad company.
126.2    (g) "Professional peace officer education" means a postsecondary degree program, or a
126.3nondegree program for persons who already have a college degree, that is offered by a
126.4college or university in Minnesota, designed for persons seeking licensure as a peace officer,
126.5and approved by the board.
126.6    (h) "Railroad peace officer" means an individual as authorized under United States Code,
126.7title 49, section 28101:
126.8    (1) employed by a railroad for the purpose of aiding and supplementing law enforcement
126.9agencies in the protection of property owned by or in the care, custody, or control of a
126.10railroad and to protect the persons and property of railroad passengers and employees; and
126.11    (2) licensed by the board.
126.12EFFECTIVE DATE.This section is effective January 1, 2026.

126.13    Sec. 15. EXISTING DUTIES ABOLISHED; TRANSFERS PROVIDED.
126.14    Subdivision 1. Duties abolished. Except as exempted in article 1, section 16, subdivision
126.156, and Minnesota Statutes, section 15D.04, subdivision 2, duties pertaining to the
126.16investigation of fraud, misuse, and other unlawful use of public funds in the Office of the
126.17Inspector General in the Department of Education are abolished effective the day after the
126.18inspector general under Minnesota Statutes, section 15D.01, certifies in writing to the
126.19commissioner of the respective department and the commissioner of management and budget
126.20that the inspector general has assumed responsibility for these duties.
126.21    Subd. 2. Inspector general transfers. Pursuant to Minnesota Statutes, section 15.039,
126.22all active investigations, obligations, court actions, contracts, and records shall transfer from
126.23the department in subdivision 1 to the inspector general under Minnesota Statutes, section
126.2415D.01, except as provided by the inspector general and as provided in article 1, section
126.2516, subdivision 6, and Minnesota Statutes, section 15D.04, subdivision 2.
126.26EFFECTIVE DATE.This section is effective July 1, 2025.

126.27    Sec. 16. REPEALER.
126.28Minnesota Statutes 2024, sections 13.321, subdivision 12; and 127A.21, subdivisions
126.291, 2, 3, 4, 6, and 7, are repealed.
126.30EFFECTIVE DATE.This section is effective the day after the inspector general under
126.31Minnesota Statutes, section 15D.01, notifies the revisor of statutes that the Office of the
127.1Inspector General under Minnesota Statutes, section 15D.01, has assumed responsibility
127.2for identifying and investigating fraud, misuse, and other unlawful use of public funds in
127.3the Department of Education.

127.4ARTICLE 14
127.5FORECAST
127.6A. GENERAL EDUCATION

127.7    Section 1. Laws 2023, chapter 55, article 1, section 36, subdivision 2, as amended by Laws
127.82024, chapter 81, section 1, and Laws 2024, chapter 115, article 1, section 15, is amended
127.9to read:
127.10    Subd. 2. General education aid. (a) For general education aid under Minnesota Statutes,
127.11section 126C.13, subdivision 4:
127.12
$
8,103,909,000
.....
2024
127.13
127.14
$
8,333,843,000
8,280,528,000
.....
2025
127.15(b) The 2024 appropriation includes $707,254,000 for 2023 and $7,396,655,000 for
127.162024.
127.17(c) The 2025 appropriation includes $771,421,000 for 2024 and $7,562,422,000
127.18$7,509,107,000 for 2025.

127.19    Sec. 2. Laws 2023, chapter 55, article 1, section 36, subdivision 3, as amended by Laws
127.202024, chapter 81, section 2, is amended to read:
127.21    Subd. 3. Enrollment options transportation. For transportation of pupils attending
127.22postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
127.23of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:
127.24
$
23,000
.....
2024
127.25
127.26
$
25,000
23,000
.....
2025

127.27    Sec. 3. Laws 2023, chapter 55, article 1, section 36, subdivision 4, as amended by Laws
127.282024, chapter 81, section 3, is amended to read:
127.29    Subd. 4. Abatement aid. (a) For abatement aid under Minnesota Statutes, section
127.30127A.49:
128.1
$
2,318,000
.....
2024
128.2
128.3
$
2,516,000
1,503,000
.....
2025
128.4(b) The 2024 appropriation includes $126,000 for 2023 and $2,192,000 for 2024.
128.5(c) The 2025 appropriation includes $243,000 for 2024 and $2,273,000 $1,260,000 for
128.62025.

128.7    Sec. 4. Laws 2023, chapter 55, article 1, section 36, subdivision 5, as amended by Laws
128.82024, chapter 81, section 4, is amended to read:
128.9    Subd. 5. Consolidation transition aid. (a) For districts consolidating under Minnesota
128.10Statutes, section 123A.485:
128.11
$
7,000
.....
2024
128.12
128.13
$
180,000
0
.....
2025
128.14(b) The 2024 appropriation includes $7,000 for 2023 and $0 for 2024.
128.15(c) The 2025 appropriation includes $0 for 2024 and $180,000 $0 for 2025.

128.16    Sec. 5. Laws 2023, chapter 55, article 1, section 36, subdivision 6, as amended by Laws
128.172024, chapter 81, section 5, is amended to read:
128.18    Subd. 6. Nonpublic pupil education aid. (a) For nonpublic pupil education aid under
128.19Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:
128.20
$
21,176,000
.....
2024
128.21
128.22
$
24,478,000
23,337,000
.....
2025
128.23(b) The 2024 appropriation includes $1,925,000 for 2023 and $19,251,000 for 2024.
128.24(c) The 2025 appropriation includes $2,138,000 for 2024 and $22,340,000 $21,199,000
128.25for 2025.

128.26    Sec. 6. Laws 2023, chapter 55, article 1, section 36, subdivision 7, as amended by Laws
128.272024, chapter 81, section 6, is amended to read:
128.28    Subd. 7. Nonpublic pupil transportation. (a) For nonpublic pupil transportation aid
128.29under Minnesota Statutes, section 123B.92, subdivision 9:
129.1
$
22,979,000
.....
2024
129.2
129.3
$
27,177,000
25,802,000
.....
2025
129.4(b) The 2024 appropriation includes $2,115,000 for 2023 and $20,864,000 for 2024.
129.5(c) The 2025 appropriation includes $2,318,000 for 2024 and $24,859,000 $23,484,000
129.6for 2025.

129.7    Sec. 7. Laws 2023, chapter 55, article 1, section 36, subdivision 9, as amended by Laws
129.82024, chapter 81, section 7, is amended to read:
129.9    Subd. 9. Career and technical aid. (a) For career and technical aid under Minnesota
129.10Statutes, section 124D.4531, subdivision 1b:
129.11
$
1,664,000
.....
2024
129.12
129.13
$
874,000
937,000
.....
2025
129.14(b) The 2024 appropriation includes $183,000 for 2023 and $1,481,000 for 2024.
129.15(c) The 2025 appropriation includes $164,000 for 2024 and $710,000 $773,000 for 2025.
129.16B. EDUCATION EXCELLENCE

129.17    Sec. 8. Laws 2023, chapter 55, article 2, section 64, subdivision 2, as amended by Laws
129.182024, chapter 81, section 8, and Laws 2024, chapter 115, article 2, section 13, is amended
129.19to read:
129.20    Subd. 2. Achievement and integration aid. (a) For achievement and integration aid
129.21under Minnesota Statutes, section 124D.862:
129.22
$
82,818,000
.....
2024
129.23
129.24
$
85,043,000
84,300,000
.....
2025
129.25(b) The 2024 appropriation includes $8,172,000 for 2023 and $74,646,000 for 2024.
129.26(c) The 2025 appropriation includes $8,294,000 for 2024 and $76,749,000 $76,006,000
129.27for 2025.

130.1    Sec. 9. Laws 2023, chapter 55, article 2, section 64, subdivision 6, as amended by Laws
130.22024, chapter 81, section 9, and Laws 2024, chapter 115, article 6, section 3, is amended
130.3to read:
130.4    Subd. 6. Charter school building lease aid. (a) For building lease aid under Minnesota
130.5Statutes, section 124E.22:
130.6
$
91,457,000
.....
2024
130.7
130.8
$
94,906,000
93,684,000
.....
2025
130.9(b) The 2024 appropriation includes $9,047,000 for 2023 and $82,410,000 for 2024.
130.10(c) The 2025 appropriation includes $9,156,000 for 2024 and $85,750,000 $84,528,000
130.11for 2025.

130.12    Sec. 10. Laws 2023, chapter 55, article 2, section 64, subdivision 21, as amended by Laws
130.132024, chapter 81, section 10, is amended to read:
130.14    Subd. 21. Interdistrict desegregation or integration transportation grants. For
130.15interdistrict desegregation or integration transportation grants under Minnesota Statutes,
130.16section 124D.87:
130.17
$
14,828,000
.....
2024
130.18
130.19
$
16,413,000
14,799,000
.....
2025

130.20    Sec. 11. Laws 2023, chapter 55, article 2, section 64, subdivision 23, as amended by Laws
130.212024, chapter 81, section 11, is amended to read:
130.22    Subd. 23. Literacy incentive aid. (a) For literacy incentive aid under Minnesota Statutes,
130.23section 124D.98:
130.24
$
41,071,000
.....
2024
130.25
130.26
$
41,588,000
40,570,000
.....
2025
130.27(b) The 2024 appropriation includes $4,606,000 for 2023 and $36,465,000 for 2024.
130.28(c) The 2025 appropriation includes $4,051,000 for 2024 and $37,537,000 $36,519,000
130.29for 2025.

131.1    Sec. 12. Laws 2023, chapter 55, article 2, section 64, subdivision 34, is amended to read:
131.2    Subd. 34. Paraprofessional training. (a) For compensation associated with paid
131.3orientation and professional development for paraprofessionals under Minnesota Statutes,
131.4section 121A.642:
131.5
$
0
.....
2024
131.6
131.7
$
7,230,000
1,997,000
.....
2025
131.8(b) The 2025 appropriation includes $0 for 2024 and $7,230,000 $1,997,000 for 2025.

131.9    Sec. 13. Laws 2023, chapter 55, article 4, section 21, subdivision 2, as amended by Laws
131.102024, chapter 81, section 12, is amended to read:
131.11    Subd. 2. American Indian education aid. (a) For American Indian education aid under
131.12Minnesota Statutes, section 124D.81, subdivision 2a:
131.13
$
18,131,000
.....
2024
131.14
131.15
$
19,672,000
19,649,000
.....
2025
131.16(b) The 2024 appropriation includes $1,159,000 for 2023 and $16,972,000 for 2024.
131.17(c) The 2025 appropriation includes $1,885,000 for 2024 and $17,787,000 $17,764,000
131.18for 2025.

131.19    Sec. 14. Laws 2023, chapter 55, article 4, section 21, subdivision 5, as amended by Laws
131.202024, chapter 81, section 13, is amended to read:
131.21    Subd. 5. Tribal contract school aid. (a) For Tribal contract school aid under Minnesota
131.22Statutes, section 124D.83:
131.23
$
1,673,000
.....
2024
131.24
131.25
$
2,131,000
2,153,000
.....
2025
131.26(b) The 2024 appropriation includes $255,000 for 2023 and $1,418,000 for 2024.
131.27(c) The 2025 appropriation includes $157,000 for 2024 and $1,974,000 $1,996,000 for
131.282025.
132.1C. TEACHERS

132.2    Sec. 15. Laws 2023, chapter 55, article 5, section 64, subdivision 3, as amended by Laws
132.32024, chapter 81, section 14, and Laws 2024, chapter 115, article 5, section 11, is amended
132.4to read:
132.5    Subd. 3. Alternative teacher compensation aid. (a) For alternative teacher compensation
132.6aid under Minnesota Statutes, section 122A.415, subdivision 4:
132.7
$
88,706,000
.....
2024
132.8
132.9
$
89,012,000
88,206,000
.....
2025
132.10(b) The 2024 appropriation includes $8,824,000 for fiscal year 2023 and $79,882,000
132.11for fiscal year 2024.
132.12(c) The 2025 appropriation includes $8,875,000 for fiscal year 2024 and $80,137,000
132.13$79,331,000 for fiscal year 2025.

132.14    Sec. 16. Laws 2023, chapter 55, article 5, section 64, subdivision 14, as amended by Laws
132.152024, chapter 81, section 15, is amended to read:
132.16    Subd. 14. Student support personnel aid. (a) For aid to support schools in addressing
132.17students' social, emotional, and physical health under Minnesota Statutes, section 124D.901:
132.18
$
30,255,000
.....
2024
132.19
132.20
$
36,498,000
36,259,000
.....
2025
132.21(b) The 2024 appropriation includes $0 for fiscal year 2023 and $30,255,000 for fiscal
132.22year 2024.
132.23(c) The 2025 appropriation includes $3,361,000 for fiscal year 2024 and $33,137,000
132.24$32,898,000 for fiscal year 2025.
132.25D. SPECIAL EDUCATION

132.26    Sec. 17. Laws 2023, chapter 55, article 7, section 18, subdivision 2, as amended by Laws
132.272024, chapter 81, section 16, is amended to read:
132.28    Subd. 2. Aid for children with disabilities. (a) For aid under Minnesota Statutes, section
132.29125A.75, subdivision 3, for children with disabilities placed in residential facilities within
132.30the district boundaries for whom no district of residence can be determined:
133.1
$
1,597,000
.....
2024
133.2
133.3
$
1,844,000
1,952,000
.....
2025
133.4(b) If the appropriation for either year is insufficient, the appropriation for the other year
133.5is available.

133.6    Sec. 18. Laws 2023, chapter 55, article 7, section 18, subdivision 3, as amended by Laws
133.72024, chapter 81, section 17, is amended to read:
133.8    Subd. 3. Court-placed special education revenue. For reimbursing serving school
133.9districts for unreimbursed eligible expenditures attributable to children placed in the serving
133.10school district by court action under Minnesota Statutes, section 125A.79, subdivision 4:
133.11
$
39,000
.....
2024
133.12
133.13
$
40,000
0
.....
2025

133.14    Sec. 19. Laws 2023, chapter 55, article 7, section 18, subdivision 4, as amended by Laws
133.152024, chapter 81, section 18, and Laws 2024, chapter 115, article 7, section 4, is amended
133.16to read:
133.17    Subd. 4. Special education; regular. (a) For special education aid under Minnesota
133.18Statutes, section 125A.75:
133.19
$
2,288,826,000
.....
2024
133.20
133.21
$
2,486,181,000
2,582,007,000
.....
2025
133.22(b) The 2024 appropriation includes $229,860,000 for 2023 and $2,058,966,000 for
133.232024.
133.24(c) The 2025 appropriation includes $289,842,000 for 2024 and $2,196,339,000
133.25$2,292,165,000 for 2025.

133.26    Sec. 20. Laws 2023, chapter 55, article 7, section 18, subdivision 6, as amended by Laws
133.272024, chapter 81, section 19, is amended to read:
133.28    Subd. 6. Special education separate sites and programs. (a) For aid for special
133.29education separate sites and programs under Minnesota Statutes, section 125A.81, subdivision
133.304
:
134.1
$
3,880,000
.....
2024
134.2
134.3
$
4,505,000
4,282,000
.....
2025
134.4(b) The 2024 appropriation includes $0 for 2023 and $3,880,000 for 2024.
134.5(c) The 2025 appropriation includes $431,000 for 2024 and $4,074,000 $3,851,000 for
134.62025.

134.7    Sec. 21. Laws 2023, chapter 55, article 7, section 18, subdivision 7, as amended by Laws
134.82024, chapter 81, section 20, is amended to read:
134.9    Subd. 7. Travel for home-based services. (a) For aid for teacher travel for home-based
134.10services under Minnesota Statutes, section 125A.75, subdivision 1:
134.11
$
425,000
.....
2024
134.12
134.13
$
475,000
440,000
.....
2025
134.14(b) The 2024 appropriation includes $32,000 for 2023 and $393,000 for 2024.
134.15(c) The 2025 appropriation includes $43,000 for 2024 and $432,000 $397,000 for 2025.
134.16E. FACILITIES

134.17    Sec. 22. Laws 2023, chapter 55, article 8, section 19, subdivision 6, as amended by Laws
134.182024, chapter 81, section 22, and Laws 2024, chapter 115, article 8, section 5, is amended
134.19to read:
134.20    Subd. 6. Long-term facilities maintenance equalized aid. (a) For long-term facilities
134.21maintenance equalized aid under Minnesota Statutes, section 123B.595, subdivision 9:
134.22
$
107,905,000
.....
2024
134.23
134.24
$
107,865,000
107,262,000
.....
2025
134.25(b) The 2024 appropriation includes $10,821,000 for 2023 and $97,084,000 for 2024.
134.26(c) The 2025 appropriation includes $10,787,000 for 2024 and $97,078,000 $96,475,000
134.27for 2025.
135.1F. NUTRITION

135.2    Sec. 23. Laws 2023, chapter 18, section 4, subdivision 2, as amended by Laws 2023,
135.3chapter 55, article 9, section 16, Laws 2024, chapter 81, section 23, and Laws 2024, chapter
135.4115, article 9, section 8, is amended to read:
135.5    Subd. 2. School lunch. For school lunch aid under Minnesota Statutes, section 124D.111,
135.6including the amounts for the free school meals program:
135.7
$
218,801,000
.....
2024
135.8
135.9
$
239,686,000
251,667,000
.....
2025

135.10    Sec. 24. Laws 2023, chapter 18, section 4, subdivision 3, as amended by Laws 2023,
135.11chapter 55, article 9, section 17, Laws 2024, chapter 81, section 24, and Laws 2024, chapter
135.12115, article 9, section 9, is amended to read:
135.13    Subd. 3. School breakfast. For school breakfast aid under Minnesota Statutes, section
135.14124D.1158:
135.15
$
44,178,000
.....
2024
135.16
135.17
$
48,747,000
54,835,000
.....
2025

135.18    Sec. 25. Laws 2023, chapter 55, article 9, section 18, subdivision 4, as amended by Laws
135.192024, chapter 81, section 25, is amended to read:
135.20    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
135.21section 124D.118:
135.22
$
428,000
.....
2024
135.23
135.24
$
428,000
387,000
.....
2025

135.25    Sec. 26. Laws 2023, chapter 55, article 9, section 18, subdivision 8, as amended by Laws
135.262024, chapter 81, section 26, is amended to read:
135.27    Subd. 8. School library aid. (a) For school library aid under Minnesota Statutes, section
135.28134.356 124D.992:
135.29
$
21,586,000
.....
2024
135.30
135.31
$
23,903,000
23,791,000
.....
2025
135.32(b) The 2024 appropriation includes $0 for 2023 and $21,586,000 for 2024.
136.1(c) The 2025 appropriation includes $2,398,000 for 2024 and $21,505,000 $21,393,000
136.2for 2025.
136.3G. EARLY EDUCATION

136.4    Sec. 27. Laws 2023, chapter 54, section 20, subdivision 7, as amended by Laws 2024,
136.5chapter 81, section 27, is amended to read:
136.6    Subd. 7. Early childhood family education aid. (a) For early childhood family education
136.7aid under Minnesota Statutes, section 124D.135 142D.11:
136.8
$
37,209,000
.....
2024
136.9
136.10
$
38,985,000
37,874,000
.....
2025
136.11(b) The 2024 appropriation includes $3,518,000 for 2023 and $33,691,000 for 2024.
136.12(c) The 2025 appropriation includes $3,743,000 for 2024 and $35,242,000 $34,131,000
136.13for 2025.

136.14    Sec. 28. Laws 2023, chapter 54, section 20, subdivision 9, as amended by Laws 2024,
136.15chapter 81, section 28, is amended to read:
136.16    Subd. 9. Developmental screening aid. (a) For developmental screening aid under
136.17Minnesota Statutes, sections 121A.17 142D.091 and 121A.19 142D.093:
136.18
$
4,148,000
.....
2024
136.19
136.20
$
4,151,000
4,156,000
.....
2025
136.21(b) The 2024 appropriation includes $349,000 for 2023 and $3,799,000 for 2024.
136.22(c) The 2025 appropriation includes $422,000 for 2024 and $3,729,000 $3,734,000 for
136.232025.

136.24    Sec. 29. Laws 2023, chapter 54, section 20, subdivision 17, as amended by Laws 2024,
136.25chapter 81, section 29, is amended to read:
136.26    Subd. 17. Home visiting aid. (a) For home visiting aid under Minnesota Statutes, section
136.27124D.135 142D.11:
136.28
$
382,000
.....
2024
136.29
136.30
$
300,000
290,000
.....
2025
136.31(b) The 2024 appropriation includes $41,000 for 2023 and $341,000 for 2024.
137.1(c) The 2025 appropriation includes $37,000 for 2024 and $263,000 $253,000 for 2025.
137.2H. COMMUNITY EDUCATION AND LIFELONG LEARNING

137.3    Sec. 30. Laws 2023, chapter 55, article 11, section 11, subdivision 2, as amended by Laws
137.42024, chapter 81, section 30, is amended to read:
137.5    Subd. 2. Adult basic education aid. (a) For adult basic education aid under Minnesota
137.6Statutes, section 124D.531:
137.7
$
52,566,000
.....
2024
137.8
137.9
$
53,684,000
53,880,000
.....
2025
137.10(b) The 2024 appropriation includes $5,179,000 for 2023 and $47,387,000 for 2024.
137.11(c) The 2025 appropriation includes $5,265,000 for 2024 and $48,419,000 $48,615,000
137.12for 2025.

137.13    Sec. 31. Laws 2023, chapter 55, article 11, section 11, subdivision 3, as amended by Laws
137.142024, chapter 81, section 31, is amended to read:
137.15    Subd. 3. Adults with disabilities program aid. (a) For adults with disabilities programs
137.16under Minnesota Statutes, section 124D.56:
137.17
$
710,000
.....
2024
137.18
137.19
$
1,520,000
1,433,000
.....
2025
137.20(b) The 2024 appropriation includes $71,000 for 2023 and $639,000 for 2024.
137.21(c) The 2025 appropriation includes $71,000 for 2024 and $1,449,000 $1,362,000 for
137.222025.

137.23    Sec. 32. Laws 2023, chapter 55, article 11, section 11, subdivision 10, as amended by
137.24Laws 2024, chapter 81, section 33, is amended to read:
137.25    Subd. 10. School-age care aid. (a) For school-age care aid under Minnesota Statutes,
137.26section 124D.22:
137.27
$
0
.....
2024
137.28
137.29
$
1,000
0
.....
2025
137.30(b) The 2024 appropriation includes $0 for 2023 and $0 for 2024.
137.31(c) The 2025 appropriation includes $0 for 2024 and $1,000 $0 for 2025.

138.1    Sec. 33. EFFECTIVE DATE.
138.2Sections 1 to 32 are effective the day following final enactment."
138.3Amend the title accordingly
138.4The motion prevailed. #did not prevail. So the amendment was #not adopted.