1.1 	A bill for an act
1.2 	relating to education finance; incorporating the health and safety revenue 
1.3 	program into the deferred maintenance revenue program; setting a per pupil 
1.4 	formula allowance for the program;amending Minnesota Statutes 2012, sections 
1.5 	123B.57, subdivisions 2, 6; 123B.59, subdivisions 1, 4; 123B.591; repealing 
1.6 	Minnesota Statutes 2012, section 123B.57, subdivisions 1, 3, 4, 5, 6a, 6b, 6c, 7.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2012, section 123B.57, subdivision 2, is amended to read:
1.9 		Subd. 2.Health and safety policy. To qualify for health and safety facilities 
1.10 	maintenance revenue under section 123B.591, a school board must adopt a health and 
1.11 	safety policy. The policy must include provisions for implementing a health and safety 
1.12 	program that complies with health, safety, and environmental regulations and best 
1.13 	practices including indoor air quality management.

1.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
1.15 	and later.

1.16 	Sec. 2. Minnesota Statutes 2012, section 123B.57, subdivision 6, is amended to read:
1.17 		Subd. 6.Uses of health and safety revenue. Health and safetyFacilities 
1.18 	maintenance revenue under section 123B.591 may be used only for approved expenditures 
1.19 	necessary for the correction of fire and life safety hazards; design, purchase, installation, 
1.20 	maintenance, and inspection of fire protection and alarm equipment; purchase or 
1.21 	construction of appropriate facilities for the storage of combustible and flammable 
1.22 	materials; inventories and facility modifications not related to a remodeling project 
1.23 	to comply with lab safety requirements under section 121A.31; inspection, testing, 
1.24 	repair, removal or encapsulation, and disposal of asbestos-containing building materials; 
2.1 	cleanup and disposal of polychlorinated biphenyls; cleanup and disposal of hazardous and 
2.2 	infectious wastes; cleanup, removal, disposal, and repairs related to storing heating fuel 
2.3 	or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined in 
2.4 	section 296A.01; correction of occupational safety and health administration regulated 
2.5 	hazards; indoor air quality inspections, investigations, and testing; mold abatement; 
2.6 	upgrades or replacement of mechanical ventilation systems to meet American Society of 
2.7 	Heating, Refrigerating and Air Conditioning Engineers standards and State Mechanical 
2.8 	Code; design, materials, and installation of local exhaust ventilation systems, including 
2.9 	required make-up air for controlling regulated hazardous substances; correction of 
2.10 	Department of Health Food Code violations; correction of swimming pool hazards 
2.11 	excluding depth correction; playground safety inspections, repair of unsafe outdoor 
2.12 	playground equipment, and the installation of impact surfacing materials; bleacher 
2.13 	repair or rebuilding to comply with the order of a building code inspector under section 
2.14 	326B.112; testing and mitigation of elevated radon hazards; lead testing; copper in water 
2.15 	testing; cleanup after major weather-related disasters or flooding; reduction of excessive 
2.16 	organic and inorganic levels in wells and capping of abandoned wells; installation and 
2.17 	testing of boiler backflow valves to prevent contamination of potable water; vaccinations, 
2.18 	titers, and preventative supplies for bloodborne pathogen compliance; costs to comply 
2.19 	with the Janet B. Johnson Parents' Right to Know Act; automated external defibrillators 
2.20 	and other emergency plan equipment and supplies specific to the district's emergency 
2.21 	action plan; and health, safety, and environmental management costs associated with 
2.22 	implementing the district's health and safety program including costs to establish and 
2.23 	operate safety committees, in school buildings or property owned or being acquired by the 
2.24 	district. Testing and calibration activities are permitted for existing mechanical ventilation 
2.25 	systems at intervals no less than every five years.

2.26 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
2.27 	and later.

2.28 	Sec. 3. Minnesota Statutes 2012, section 123B.59, subdivision 1, is amended to read:
2.29 		Subdivision 1.To qualify. (a) An independent or special school district qualifies to 
2.30 	participate in the alternative facilities bonding and levy program if the district has:
2.31 	(1) more than 66 students per grade;
2.32 	(2) over 1,850,000 square feet of space and the average age of building space is 15 
2.33 	years or older or over 1,500,000 square feet and the average age of building space is 
2.34 	35 years or older;
3.1 	(3) insufficient funds from projected health and safety revenue and capital facilities 
3.2 	revenue to meet the requirements for deferred maintenance, to make accessibility 
3.3 	improvements, or to make fire, safety, or health repairs; and
3.4 	(4) a ten-year facility plan approved by the commissioner according to subdivision 2.
3.5 	(b) An independent or special school district not eligible to participate in the 
3.6 	alternative facilities bonding and levy program under paragraph (a) qualifies for limited 
3.7 	participation in the program if the district has:
3.8 	(1) one or more health and safety projects with an estimated cost of $500,000 or 
3.9 	more per site that would qualify for health and safety revenue except for the project size 
3.10 	limitation in section 123B.57, subdivision 1, paragraph (b); and
3.11 	(2) insufficient funds from capital facilities revenue to fund those projects.
3.12 	(c) Notwithstanding the square footage limitation in paragraph (a), clause (2), 
3.13 	a school district that qualified for eligibility under paragraph (a) as of July 1, 2007, 
3.14 	remains eligible for funding under this section as long as the district continues to meet the 
3.15 	requirements of paragraph (a), clauses (1), (3), and (4).

3.16 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
3.17 	and later.

3.18 	Sec. 4. Minnesota Statutes 2012, section 123B.59, subdivision 4, is amended to read:
3.19 		Subd. 4.Levy prohibited for capital projects. A district that participates in the 
3.20 	alternative facilities bonding and levy program is not eligible to levy and cannot receive 
3.21 	aid under sections 123B.57 and123B.58and 123B.591 for any capital projects funded 
3.22 	under this section. A district may levy and receive aid for health and safety environmental 
3.23 	management costs and health and safety regulatory, hazard assessment, record keeping, 
3.24 	and maintenance programs as defined in section 123A.443, subdivision 2 123B.56, and 
3.25 	approved by the commissioner.

3.26 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
3.27 	and later.

3.28 	Sec. 5. Minnesota Statutes 2012, section 123B.591, is amended to read:
3.29 	123B.591 DEFERRED FACILITIES MAINTENANCE REVENUE.
3.30 		Subdivision 1.Eligibility. An independent or special school district that has 
3.31 	adopted a health and safety policy under section 123B.57, subdivision 2, and that does not 
3.32 	qualify to participate in the alternative facilities bonding and levy under section 123B.59, 
3.33 	subdivision 1, paragraph (a), is eligible to receive deferred facilities maintenance revenue.
4.1 		Subd. 2.Deferred Facilities maintenance revenue. (a) The deferred facilities
4.2 	 maintenance revenue for an eligible school district equals the lesser of:
4.3 	(1) the district's average health and safety revenue for fiscal years 2009 to 2013; or
4.4 	(2) the product of $60 $230 times the adjusted marginal cost pupil units for the 
4.5 	school year times the lesser of one or the ratio of the district's average age of building 
4.6 	space to 35 years.
4.7 	(b) A school district that has a health and safety project meeting the criteria in 
4.8 	section 123B.57, subdivision 6, in excess of $500,000 at any site may, upon approval of 
4.9 	the commissioner of education, proceed with that project under section 123B.59.
4.10 	(c) A school district that is a member of an intermediate school district may include 
4.11 	in its revenue an additional amount not to exceed $75 per pupil unit for projects at the 
4.12 	intermediate school district which must be transferred to the intermediate school district.
4.13 		Subd. 3.Deferred Facilities maintenance levy. To obtain deferred facilities
4.14 	 maintenance revenue for fiscal year 2008 and later, a district may levy an amount not 
4.15 	more than the product of its deferred facilities maintenance revenue for the fiscal year 
4.16 	times the lesser of one or the ratio of its adjusted net tax capacity per adjusted marginal 
4.17 	cost pupil unit to $5,621.
4.18 		Subd. 4.Deferred Facilities maintenance aid. For fiscal year 2008 and later, A 
4.19 	district's deferred facilities maintenance aid equals its deferred facilities maintenance 
4.20 	revenue minus its deferred facilities maintenance levy times the ratio of the actual amount 
4.21 	levied to the permitted levy.
4.22 		Subd. 5.Reserve account. Deferred Facilities maintenance revenue must be 
4.23 	maintained in a reserve account within the general fund. Deferred Facilities maintenance 
4.24 	revenue may must be used only for facilities expenditures that would be eligible for 
4.25 	alternative facilities bonding and levy revenue under section 123B.59, subdivision 2, 
4.26 	paragraph (a), if the district qualified for that revenue under section 123B.59, subdivision 
4.27 	1, paragraph (a) including any health and safety expenditures authorized under section 
4.28 	123B.591.

4.29 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
4.30 	and later.

4.31 	Sec. 6.  REPEALER.
 4.32 	Minnesota Statutes 2012, section 123B.57, subdivisions 1, 3, 4, 5, 6a, 6b, 6c, and 
4.33 	7, are repealed.

5.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
5.2 	and later.