1.1 	A bill for an act
1.2 	relating to education finance; modifying school debt provisions;amending 
1.3 	Minnesota Statutes 2006, section 123B.81, subdivisions 3, 5.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2006, section 123B.81, subdivision 3, is amended to read:
1.6 		Subd. 3.Debt verification. The commissioner shall establish a uniform auditing or 
1.7 	other verification procedure for districts to determine whether a statutory operating debt 
1.8 	exists in any Minnesota school district as of June 30, 1977. This procedure must identify 
1.9 	all interfund transfers made during fiscal year 1977 from a fund included in computing 
1.10 	statutory operating debt to a fund not included in computing statutory operating debt. 
1.11 	The standards for this uniform auditing or verification procedure must be promulgated 
1.12 	by the state board pursuant to chapter 14. If a district applies to the commissioner for 
1.13 	a statutory operating debt verification or if the unaudited financial statement for the 
1.14 	school year ending June 30, 1977 reveals that a statutory operating debt might exist, the 
1.15 	commissioner shall require a verification of the amount of the statutory operating debt 
1.16 	which actually does exist.

1.17 	Sec. 2. Minnesota Statutes 2006, section 123B.81, subdivision 5, is amended to read:
1.18 		Subd. 5.Certification of debt. The commissioner shall certify the amount of 
1.19 	statutory operating debt for each district. Prior to June 30, 1979, the commissioner may, 
1.20 	on the basis of corrected figures, adjust the total amount of statutory operating debt 
1.21 	certified for any district.