1078dc

_________________ moved that HB 1078 be amended as follows:

     On the printed bill, delete everything after the enacting clause and insert:

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     Section 1. That § 13-13-10.1 be amended to read as follows:

     13-13-10.1.   Terms used in this chapter mean:

             (1)      "General enrollment average daily membership," the average number of resident and nonresident kindergarten through twelfth grade pupils enrolled in all schools operated by the school district during the previous regular school year, minus average number of pupils for whom the district receives tuition, except pupils described in subdivision (1A) and pupils for whom tuition is being paid pursuant to §  13-28-42 and plus the average number of pupils for whom the district pays tuition, except pupils for whom the district pays tuition pursuant to §  13-28-42;

             (1A)      Nonresident students who are in the care and custody of the Department of Social Services, the Unified Judicial System, the Department of Corrections, or other state agencies and are attending a public school may be included in the average daily membership of the receiving district when enrolled in the receiving district. When counting a student who meets these criteria in its general enrollment average daily membership, the receiving district may begin the enrollment on the first day of attendance. The district of residence prior to the custodial transfer may not include students who meet these criteria in its general enrollment average daily membership after the student ceases to attend school in the resident district;

             (2)      "Adjusted average daily membership," calculated as follows:

             (a)      For districts with a general enrollment average daily membership of two hundred or less, multiply 1.2 times the general enrollment average daily membership;

             (b)      For districts with a general enrollment average daily membership of less than six hundred, but greater than two hundred, raise the general enrollment average daily membership to the 0.8293 power and multiply the result times 2.98;

             (c)      For districts with a general enrollment average daily membership of six hundred or more, multiply 1.0 times their general enrollment average daily membership;

             (3)      "Index factor," is the annual percentage change in the consumer price index for urban wage earners and clerical workers as computed by the Bureau of Labor Statistics of the United States Department of Labor for the year before the year immediately preceding the year of adjustment or three percent, whichever is less plus the

enrollment adjustment. However, the index factor may not be less than three percent;

             (3A)    "Enrollment adjustment," is the negative of the annual percent change in the statewide general enrollment average daily membership for the year before the year immediately preceding the year of adjustment. However, the enrollment adjustment may not be less than zero ;

             (4)      "Per student allocation," for the period January 1, 1997, to June 30, 1997, inclusive, is $1,675. For school fiscal year 1998, beginning on July 1, 1997, the per student allocation shall be $3,350 increased by the index factor. Each school fiscal year thereafter, the per student allocation shall be the previous fiscal year's per student allocation increased by the index factor;

             (5)      "Local need," the per student allocation multiplied by the adjusted average daily membership;

             (6)      "Local effort," the amount of ad valorem taxes generated in a school fiscal year by applying the levies established pursuant to §   10-12-42.

     Section 2. Any school district that receives revenue resulting from the enrollment adjustment shall use the resulting revenue to increase teachers' salaries. The Department of Education and Cultural Affairs shall certify to each school district the amount of revenue it will receive from general state aid to education resulting from the enrollment adjustment.

     Section 3. School districts shall certify to the Department of Education and Cultural Affairs that the revenue received resulting from the enrollment adjustment is used to increase teachers' salaries.

     Section 4. That § 13-37-35.1 be amended to read as follows:

     13-37-35.1.   Terms used in chapter 13-37 mean:

             (1)      "Level one disability," a mild disability;

             (2)      "Level two disability," a mental retardation or emotional disorder;

             (3)      "Level three disability," hearing impairment, deafness, visual impairment, deaf-blindness, orthopedic impairment, or traumatic brain injury;

             (4)      "Level four disability," autism;

             (5)      "Level five disability," multiple disabilities;

             (6)      "Index factor," is the annual percentage change in the consumer price index for urban wage earners and clerical workers as computed by the Bureau of Labor Statistics of the United States Department of Labor for the year before the year immediately preceding the year of adjustment or three percent, whichever is less . However, the index factor may not be less than three percent or greater than five percent ;

             (7)      "Local effort," is the amount of taxes payable each year, using a levy for the special

education fund of a school district of one dollar and thirty-five cents per thousand dollars of taxable valuation;

             (8)      "Allocation for a student with a level one disability," for the school fiscal year beginning July 1, 1999, is $3,504. For each school year thereafter, the allocation for a student with a level one disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent ;

             (9)      "Allocation for a student with a level two disability," for the school fiscal year beginning July 1, 1999, is $7,914. For each school year thereafter, the allocation for a student with a level two disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent ;

             (10)      "Allocation for a student with a level three disability," for the school fiscal year beginning July 1, 1999, is $10,116. For each school year thereafter, the allocation for a student with a level three disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent ;

             (11)      "Allocation for a student with a level four disability," for the school fiscal year beginning July 1, 1999, is $14,705. For each school year thereafter, the allocation for a student with a level four disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent ;

             (12)      "Allocation for a student with a level five disability," for the school fiscal year beginning July 1, 1999, is $15,808. For each school year thereafter, the allocation for a student with a level five disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent ;

             (13)      "Child count," is the number of students in need of special education or special education and related services according to criteria set forth in rules promulgated pursuant to § §  13-37-1.1 and 13-37-46 submitted to the Department of Education and Cultural Affairs in accordance with rules promulgated pursuant to §  13-37-1.1;

             (14)      "Resident average daily membership," the average number of resident kindergarten through twelfth grade pupils enrolled in all schools operated by the school district during the previous regular school year plus the average number of pupils for whom the district pays tuition and plus the average number of resident pupils enrolled in another school district under the provisions of §  13-28-40;

             (15)      "Nonpublic school," a sectarian organization or entity which is accredited by the secretary of education and cultural affairs for the purpose of instructing children of compulsory school age. This definition excludes any school that receives a majority of its revenues from public funds;

             (16)      "Nonpublic average daily membership," the average number of kindergarten through twelfth grade pupils enrolled during the previous regular school year in all nonpublic schools located within the boundaries of the public school district plus the average number of children under age sixteen who are approved for alternative instruction pursuant to §  13-27-2 during the previous school year;

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             (17)      "Special education average daily membership," resident average daily membership plus nonpublic average daily membership;

             (18)      "Local need," an amount to be determined as follows:

             (a)      Multiply the special education average daily membership by 0.089 and multiply the result by the allocation for a student with a level one disability;

             (b)      Multiply the number of students having a level two disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level two disability;

             (c)      Multiply the number of students having a level three disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level three disability;

             (d)      Multiply the number of students having a level four disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level four disability;

             (e)      Multiply the number of students having a level five disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level five disability;

             (f)      Sum the results of (a) through (e);

             (19)      "Effort factor," the school district's special education tax levy in dollars per thousand divided by $1.35. The maximum effort factor is 1.0.

     Section 5. There is hereby created the Excess General Fund Balance Oversight Board. The board shall consist of five members, appointed by the secretary of the Department of Education and Cultural Affairs.

     Section 6. That chapter 13-13 be amended by adding thereto a NEW SECTION to read as follows:

     Unless the Excess General Fund Balance Oversight Board grants a waiver from the provisions of this Act, beginning with the state aid to education distribution for the fiscal year ending June 30, 2002, a school district's entitlement for state aid provided for in this chapter shall be reduced by the amount by which the school district's ending general fund balance plus any general funds transferred to the capital outlay fund in excess of five percent of the previous year's general fund expenditures exceeds thirty percent of its general fund expenditures or two hundred fifty thousand dollars, whichever is greater, for the school fiscal year prior to the school fiscal year for which state aid to education is to be distributed.

    Section 7. Any school district anticipating that its ending general fund cash balance will be in excess of the amounts provided for in section 6 of this Act may apply to the Excess General Fund Balance Oversight Board for a waiver from all or part of the reduction in state aid to education provided for in section 6 of this Act. A school district applying for a waiver shall provide the Excess General Fund Balance Oversight Board with a detailed accounting and

reasons for anticipating that the school district's ending general fund cash balance will be in excess of the amount provided for in section 6 of this Act.

    Section 8. The Excess General Fund Balance Oversight Board may grant a waiver for all or part of the reduction in state aid to education provided for in section 6 of this Act. The board may request additional information from a school district and shall arrive at a decision within three weeks after receiving an application from a school district or any additional information requested by the board.

    Section 9. All decisions of the Excess General Fund Balance Oversight Board shall require a vote of at least three members of the board.

     Section 10. Any money that is reduced from a school district's entitlement as provided in section 6 of this Act shall be deposited into the education improvement fund which is hereby created as a special fund in the state treasury. The expenditure of any money out of the education improvement fund requires specific approval through an enactment of the Legislature. The Legislature may appropriate money out of the education improvement fund for the purpose of increasing teachers' salaries.

     Section 11. Any teacher who teaches in a public school in South Dakota and who has obtained certification by the National Board for Professional Teaching Standards shall receive a payment of one thousand dollars from the Department of Education and Cultural Affairs as partial reimbursement for costs incurred in completing the certification process. If the teacher does not remain a teacher in a South Dakota public school for at least three years following such certification, the teacher shall refund the payment.

    Section 12. In addition to the reimbursement provided pursuant to section 5 of this Act, any teacher who teaches in a public school in South Dakota and who has obtained certification by the National Board for Professional Teaching Standards shall receive a payment of two thousand dollars per year from the Department of Education and Cultural Affairs for the duration of the certification, not to exceed ten years. A teacher is eligible for payment under this section only if the teacher teaches in a public school in South Dakota.

    Section 13. Any teacher who teaches in a public school in South Dakota and who has obtained certification by the National Board for Professional Teaching Standards is exempt from any state certification renewal requirements and any other requirements for additional academic training for the duration of the national certification.

    Section 14. Sections 11, 12, and 13 of this Act are effective on July 1, 2001.

    Section 15. The Department of Education and Cultural Affairs may promulgate rules pursuant to chapter 1-26 to define general fund balances for the purposes for which the term is used in this Act and criteria for the Excess General Fund Oversight Board to grant waivers and to verify the certification by a school district that revenue resulting from the enrollment adjustment is used to increase teachers' salaries. "