1.1                          A bill for an act
  1.2             relating to education; allowing the transfer of 
  1.3             certain capital expenditure revenue between accounts 
  1.4             in certain cases; amending Minnesota Statutes 1994, 
  1.5             sections 124.243, subdivisions 1, 7, and 8; and 
  1.6             124.244, subdivision 4. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 124.243, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  A school board annually shall, by 
  1.11  resolution adopted by a two-thirds vote of its governing body 
  1.12  and after notice and hearing, adopt a capital expenditure 
  1.13  facilities program.  The district shall publish notice of the 
  1.14  hearing in its official newspaper at least 20 days before the 
  1.15  hearing.  A school board may amend its capital expenditure 
  1.16  facilities program at any time.  The program shall include plans 
  1.17  for repair and restoration of existing district-owned facilities 
  1.18  and plans for new construction.  Plans for new construction and 
  1.19  plans for repairs and restoration funded through bond proceeds 
  1.20  must be included in the program before notice of the district's 
  1.21  intended debt service levy is given to the commissioner for the 
  1.22  project costs to be included in the district's required debt 
  1.23  service levy under section 124.95 for that year.  The program 
  1.24  shall include specific provisions to correct any existing health 
  1.25  and safety hazards.  The program must set forth the facilities 
  1.26  to be improved, a schedule of work not more than five years from 
  2.1   the adoption or amendment of the program, the estimated cost of 
  2.2   the improvements to be made, the estimated property tax effects 
  2.3   of the program for the next fiscal year, and the proposed 
  2.4   methods of financing the program.  The current program must also 
  2.5   list the amount of facilities or equipment revenue, if any, that 
  2.6   is scheduled to be transferred to the equipment or facilities 
  2.7   account respectively. 
  2.8      Sec. 2.  Minnesota Statutes 1994, section 124.243, 
  2.9   subdivision 7, is amended to read: 
  2.10     Subd. 7.  [SEPARATE ACCOUNT ACCOUNTS.] Capital expenditure 
  2.11  facilities revenue and capital expenditure equipment revenue 
  2.12  must be placed in a separate account accounts within the capital 
  2.13  expenditure fund. 
  2.14     Sec. 3.  Minnesota Statutes 1994, section 124.243, 
  2.15  subdivision 8, is amended to read: 
  2.16     Subd. 8.  [FUND TRANSFERS.] (a) Money in the account for 
  2.17  capital expenditure facilities revenue must not be transferred 
  2.18  into any other account or fund, except as specified in this 
  2.19  subdivision. 
  2.20     (b) The school board may, by resolution, transfer money 
  2.21  into the debt redemption fund to pay the amounts needed to meet, 
  2.22  when due, principal and interest payments on certain obligations 
  2.23  issued according to chapter 475. 
  2.24     (c) Each fiscal year, if a district does not have any 
  2.25  obligations outstanding under chapter 475, has not levied under 
  2.26  section 124.239, subdivision 3 or 5, and has not received 
  2.27  revenue under section 124.83, a school board may use up to 
  2.28  one-third of its capital expenditure facilities revenue for 
  2.29  equipment uses under section 124.244. 
  2.30     (d) Notwithstanding paragraph (c), A school board may 
  2.31  transfer all or a part of its capital expenditure facilities 
  2.32  revenue to its capital expenditure equipment account if: 
  2.33     (1) the district has only one facility and that facility is 
  2.34  less than ten years old; or 
  2.35     (2) the district receives approval from the commissioner to 
  2.36  make the transfer. 
  3.1      (e) In considering approval of a transfer under paragraph 
  3.2   (d), clause (2), the commissioner must consider the district's 
  3.3   facility needs the amount transferred is included for capital 
  3.4   equipment purposes in the district's current capital expenditure 
  3.5   program. 
  3.6      Sec. 4.  Minnesota Statutes 1994, section 124.244, 
  3.7   subdivision 4, is amended to read: 
  3.8      Subd. 4.  [USES OF REVENUE.] (a) Capital expenditure 
  3.9   equipment revenue may be used only for the following purposes:  
  3.10     (1) to pay capital expenditure equipment related 
  3.11  assessments of any entity formed under a cooperative agreement 
  3.12  between two or more districts; 
  3.13     (2) to purchase or lease computers and related materials, 
  3.14  copying machines, telecommunications equipment, and other 
  3.15  noninstructional equipment; 
  3.16     (3) to purchase or lease assistive technology or equipment 
  3.17  for instructional programs; 
  3.18     (4) to purchase textbooks; 
  3.19     (5) to purchase new and replacement library books; and 
  3.20     (6) to purchase vehicles except those for which a levy is 
  3.21  authorized under section 124.226, subdivision 6; and 
  3.22     (7) to make transfers to the capital facilities account as 
  3.23  provided in the district's current capital expenditure program 
  3.24  as required under section 124.243, subdivision 1. 
  3.25     (b) The reserved capital expenditure equipment revenue 
  3.26  shall only be used to purchase or lease telecommunications 
  3.27  equipment, computers, and related equipment for integrated 
  3.28  information management systems for: 
  3.29     (1) managing and reporting learner outcome information for 
  3.30  all students under a results-oriented graduation rule; 
  3.31     (2) managing student assessment, services, and achievement 
  3.32  information required for students with individual education 
  3.33  plans; and 
  3.34     (3) other classroom information management needs. 
  3.35     (c) The equipment obtained with reserved revenue shall be 
  3.36  utilized, to the greatest extent possible given available 
  4.1   funding, on a per instructor or per classroom basis.  A school 
  4.2   district may supplement its reserved revenue with other capital 
  4.3   expenditure equipment revenue, and cash and in-kind grants from 
  4.4   public and private sources. 
  4.5      Sec. 5.  [EFFECTIVE DATE.] 
  4.6      Sections 1 to 4 are effective July 1, 1995.