Minnesota Legislature
HF 576
as introduced - 92nd Legislature (2021 - 2022) Posted on 02/01/2021 03:22pm
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 02/01/2021 |
Current Version - as introduced
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A bill for an act
relating to education finance; providing enhanced debt service equalization aid
for consolidating school districts facing unique circumstances; amending Minnesota
Statutes 2020, section 123B.535.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 123B.535, is amended to read:
123B.535 deleted text begin NATURAL DISASTERdeleted text end new text begin ENHANCEDnew text end DEBT SERVICE
EQUALIZATION.
Subdivision 1.
Definitionsnew text begin ; eligibilitynew text end .
(a) For purposes of this section, the eligible
deleted text begin natural disasterdeleted text end new text begin enhancednew text end debt service revenue of a district is defined as the amount needed
to produce between five and six percent in excess of the amount needed to meet when due
the principal and interest payments on the obligations of the district new text begin issued under paragraphs
(b) and (c) new text end that would otherwise qualify under section 123B.53 deleted text begin under the following
conditions:deleted text end new text begin .
new text end
new text begin
(b) A district that has been negatively affected by a natural disaster qualifies for enhanced
debt service equalization under this section if:
new text end
(1) the district was impacted by a natural disaster event or area occurring January 1,
2005, or later, as declared by the President of the United States of America, which is eligible
for Federal Emergency Management Agency payments;
(2) the natural disaster caused $500,000 or more in damages to school district buildings;
and
(3) the repair and replacement costs are not covered by insurance payments or Federal
Emergency Management Agency payments.
new text begin
(c) A district that consolidates on or after July 1, 2022, with an approved consolidation
plat and plan under section 123A.48, is eligible for enhanced debt service equalization under
this section if that plan identifies construction projects that have received a positive review
and comment.
new text end
deleted text begin (b)deleted text end new text begin (d)new text end For purposes of this section, the adjusted net tax capacity equalizing factor equals
the quotient derived by dividing the total adjusted net tax capacity of all school districts in
the state for the year before the year the levy is certified by the total number of adjusted
pupil units in the state for the year prior to the year the levy is certified.
deleted text begin (c)deleted text end new text begin (e)new text end For purposes of this section, the adjusted net tax capacity determined according
to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
generally exempted from ad valorem taxes under section 272.02, subdivision 64.
Subd. 2.
Notification.
A district eligible for deleted text begin natural disasterdeleted text end new text begin enhancednew text end debt service
equalization revenue under subdivision 1 must notify the commissioner of the amount of
its intended deleted text begin natural disasterdeleted text end new text begin enhancednew text end debt service revenue calculated under subdivision 1
for all bonds sold prior to the notification by July 1 of the calendar year the levy is certifiednew text begin ,
or for a district newly consolidated as of July 1 of the calendar year, by September 30 of
the calendar year the levy is certifiednew text end .
Subd. 3.
deleted text begin Natural disasterdeleted text end new text begin Enhancednew text end debt service equalization revenue.
The debt
service equalization revenue of a district equals the greater of zero or the eligible debt service
revenue, minus the greater of zero or the difference between:
(1) the amount raised by a levy of ten percent times the adjusted net tax capacity of the
district; and
(2) the district's eligible debt service revenue under section 123B.53.
Subd. 4.
Equalized deleted text begin natural disasterdeleted text end new text begin enhancednew text end debt service levy.
A district's equalized
deleted text begin natural disasterdeleted text end new text begin enhancednew text end debt service levy equals the district's deleted text begin natural disasterdeleted text end new text begin enhancednew text end
debt service equalization revenue times the lesser of one or the ratio of:
(1) the quotient derived by dividing the adjusted net tax capacity of the district for the
year before the year the levy is certified by the adjusted pupil units in the district for the
school year ending in the year prior to the year the levy is certified; to
(2) 300 percent of the statewide adjusted net tax capacity equalizing factor.
Subd. 5.
deleted text begin Natural disasterdeleted text end new text begin Enhancednew text end debt service equalization aid.
A district's deleted text begin natural
disasterdeleted text end new text begin enhancednew text end debt service equalization aid equals the difference between the district's
deleted text begin natural disasterdeleted text end new text begin enhancednew text end debt service equalization revenue and the district's equalized
deleted text begin natural disasterdeleted text end new text begin enhancednew text end debt service levy.
Subd. 6.
deleted text begin Natural disasterdeleted text end new text begin Enhancednew text end debt service equalization aid payment
schedule.
new text begin Enhanced new text end debt service equalization aid must be paid according to section 127A.45,
subdivision 10.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2021.
new text end