1.1                          A bill for an act 
  1.2             relating to education; removing performance bond 
  1.3             requirement on contracts for the transportation of 
  1.4             school children; providing for a capital operating 
  1.5             account levy for school buses; amending Minnesota 
  1.6             Statutes 2002, section 123B.52, subdivision 3, by 
  1.7             adding a subdivision. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 123B.52, 
  1.10  subdivision 3, is amended to read: 
  1.11     Subd. 3.  [TRANSPORTATION; FUEL.] Notwithstanding the 
  1.12  provisions of subdivision 1 or section 471.345, a contract for 
  1.13  the transportation of school children, or a contract for the 
  1.14  purchase of petroleum heating fuel or fuel for vehicles may be 
  1.15  made by direct negotiation, by obtaining two or more written 
  1.16  quotations for the service when possible, or upon sealed bids.  
  1.17  At least 30 days before awarding a directly negotiated contract, 
  1.18  the district must, by published notice, request quotations for 
  1.19  the service to be provided.  All quotations obtained must be 
  1.20  kept on file for a period of at least one year after receipt.  
  1.21  If a contract is made by direct negotiation, all quotations must 
  1.22  be public information.  If a contract is made upon sealed bids, 
  1.23  the procedure for advertising and awarding bids shall conform to 
  1.24  the provisions of subdivision 1 except as otherwise provided in 
  1.25  this subdivision. 
  1.26     Notwithstanding the provisions of subdivision 1 or section 
  2.1   574.26, a performance bond must be required of a contractor on a 
  2.2   contract for the transportation of school children only when the 
  2.3   total cost of the contract exceeds $1,500,000 and is deemed 
  2.4   necessary by and at the discretion of the board.  Such a 
  2.5   performance bond must be in the amount determined by the 
  2.6   board but in no case more than 50 percent of the annual contract 
  2.7   cost. 
  2.8      Sec. 2.  Minnesota Statutes 2002, section 123B.52, is 
  2.9   amended by adding a subdivision to read: 
  2.10     Subd. 7.  [BUS PURCHASE LEVY.] (a) A district may create a 
  2.11  reserved account in its capital operating account.  Each year a 
  2.12  district must transfer an amount no less than ten percent of the 
  2.13  purchase price of school buses used for regular to and from 
  2.14  transportation.  The district must also transfer an amount no 
  2.15  less than 20 percent of the contracted cost of regular to and 
  2.16  from transportation. 
  2.17     (b) A district may levy for a bus purchase.  The levy must 
  2.18  not exceed 90 percent of the school bus capital equipment 
  2.19  transfer amount. 
  2.20     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
  2.21  payable in 2004 and thereafter.