SF 1971

as introduced - 87th Legislature (2011 - 2012) Posted on 03/14/2012 04:09pm

A bill for an act
relating to education finance; simplifying the approval process for food service
equipment purchased from the food service fund; amending Minnesota Statutes
2010, section 124D.111, subdivision 3.

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

Section 1.

Minnesota Statutes 2010, section 124D.111, subdivision 3, is amended to
read:

Subd. 3.

School food service fund.

(a) The expenses described in this subdivision
must be recorded as provided in this subdivision.

(b) In each district, the expenses for a school food service program for pupils must
be attributed to a school food service fund. Under a food service program, the school
food service may prepare or serve milk, meals, or snacks in connection with school or
community service activities.

(c) Revenues and expenditures for food service activities must be recorded in the
food service fund. The costs of processing applications, accounting for meals, preparing
and serving food, providing kitchen custodial services, and other expenses involving the
preparing of meals or the kitchen section of the lunchroom may be charged to the food
service fund or to the general fund of the district. The costs of lunchroom supervision,
lunchroom custodial services, lunchroom utilities, and other administrative costs of the
food service program must be charged to the general fund.

That portion of superintendent and fiscal manager costs that can be documented as
attributable to the food service program may be charged to the food service fund provided
that the school district does not employ or contract with a food service director or other
individual who manages the food service program, or food service management company.
If the cost of the superintendent or fiscal manager is charged to the food service fund,
the charge must be at a wage rate not to exceed the statewide average for food service
directors as determined by the department.

(d) Capital expenditures for the purchase of food service equipment must be made
from the general fund and not the food service fund, unless deleted text begin two conditions apply:
deleted text end

deleted text begin (1) deleted text end the unreserved balance in the food service fund at the end of the last fiscal year is
greater than the cost of the equipment to be purchased deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (2) the department has approved the purchase of the equipment.
deleted text end

(e) If the deleted text begin two conditions deleted text end new text begin condition new text end set out in paragraph (d) deleted text begin apply deleted text end new text begin applies new text end , the
equipment may be purchased from the food service fund.

(f) If a deficit in the food service fund exists at the end of a fiscal year, and the deficit
is not eliminated by revenues from food service operations in the next fiscal year, then the
deficit must be eliminated by a permanent fund transfer from the general fund at the end of
that second fiscal year. However, if a district contracts with a food service management
company during the period in which the deficit has accrued, the deficit must be eliminated
by a payment from the food service management company.

(g) Notwithstanding paragraph (f), a district may incur a deficit in the food service
fund for up to three years without making the permanent transfer if the district submits
to the commissioner by January 1 of the second fiscal year a plan for eliminating that
deficit at the end of the third fiscal year.

(h) If a surplus in the food service fund exists at the end of a fiscal year for three
successive years, a district may recode for that fiscal year the costs of lunchroom
supervision, lunchroom custodial services, lunchroom utilities, and other administrative
costs of the food service program charged to the general fund according to paragraph (c)
and charge those costs to the food service fund in a total amount not to exceed the amount
of surplus in the food service fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for food service equipment purchases
made on or after July 1, 2012.
new text end