1.1.................... moves to amend the first committee engrossment to H. F. No. 2475
1.2as follows:
1.3Page 23, after line 14, insert:

1.4    "Sec. 24. Minnesota Statutes 2006, section 126C.05, subdivision 3, is amended to read:
1.5    Subd. 3. Compensation revenue pupil units. (a) Compensation revenue pupil units
1.6for fiscal year 1998 and thereafter must be computed according to this subdivision.
1.7    (a) The compensation revenue concentration percentage for each building in a
1.8district equals the product of 100 times the ratio of:
1.9    (1) the sum of the number of pupils enrolled in the building eligible to receive free
1.10lunch plus one-half of the pupils eligible to receive reduced priced lunch on October
1.111 of the previous fiscal year; to
1.12    (2) the number of pupils enrolled in the building on October 1 of the previous fiscal
1.13year.
1.14    (b) The compensation revenue pupil weighting factor for a building equals the
1.15lesser of one or the quotient obtained by dividing the building's compensation revenue
1.16concentration percentage by 80.0.
1.17    (c) The compensation revenue pupil units for a building equals the product of:
1.18    (1) the sum of the number of pupils enrolled in the building eligible to receive free
1.19lunch and one-half of the pupils eligible to receive reduced priced lunch on October 1
1.20of the previous fiscal year; times
1.21    (2) the compensation revenue pupil weighting factor for the building; times
1.22    (3) .60.
1.23    (d) (b) Notwithstanding paragraphs paragraph (a) to (c), for charter schools and
1.24contracted alternative programs in the first year of operation, compensation revenue pupil
1.25units shall be computed using data for the current fiscal year. If the charter school or
1.26contracted alternative program begins operation after October 1, compensatory revenue
1.27pupil units shall be computed based on pupils enrolled on an alternate date determined by
2.1the commissioner, and the compensation revenue pupil units shall be prorated based on
2.2the ratio of the number of days of student instruction to 170 days.
2.3    (e) The percentages in this subdivision must be based on the count of individual
2.4pupils and not on a building average or minimum.
2.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.

2.6    Sec. 25. Minnesota Statutes 2006, section 126C.10, subdivision 3, is amended to read:
2.7    Subd. 3. Compensatory education revenue. (a) The compensatory education
2.8revenue for each building in the district equals the formula allowance minus $415 $1,495
2.9times the compensation revenue pupil units computed according to section 126C.05,
2.10subdivision 3 . Revenue shall be paid to the district and must be allocated according to
2.11section 126C.15, subdivision 2.
2.12    (b) When the district contracting with an alternative program under section 124D.69
2.13changes prior to the start of a school year, the compensatory revenue generated by pupils
2.14attending the program shall be paid to the district contracting with the alternative program
2.15for the current school year, and shall not be paid to the district contracting with the
2.16alternative program for the prior school year.
2.17    (c) When the fiscal agent district for an area learning center changes prior to the start
2.18of a school year, the compensatory revenue shall be paid to the fiscal agent district for the
2.19current school year, and shall not be paid to the fiscal agent district for the prior school year.
2.20    (d) Notwithstanding paragraph (a), the compensatory revenue for a school district
2.21that has been adversely affected by a natural disaster and that has received by law a
2.22specific education aid payment to compensate the district for the disaster during fiscal
2.23year 2008, equals the greater of the revenue calculated under this subdivision, or the
2.24amount the district would have received under Minnesota Statutes 2006, sections 126C.05,
2.25subdivision 3, and 126C.10, subdivision 3.
2.26EFFECTIVE DATE.This section is effective July 1, 2008, for revenue for fiscal
2.27year 2009 and later."
2.28Renumber the sections in sequence and correct the internal references
2.29Amend the title accordingly