HF 579

as introduced - 91st Legislature (2019 - 2020) Posted on 03/04/2019 04:28pm

A bill for an act
relating to education finance; authorizing certain school facility safety projects
under the long-term facilities maintenance revenue program; expanding the safe
schools revenue program; appropriating money; amending Minnesota Statutes
2018, sections 123B.595; 123B.61; 126C.44.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 123B.595, is amended to read:

123B.595 LONG-TERM FACILITIES MAINTENANCE REVENUE.

Subdivision 1.

Long-term facilities maintenance revenue.

deleted text begin (a) For fiscal year 2017
only, long-term facilities maintenance revenue equals the greater of (1) the sum of (i) $193
times the district's adjusted pupil units times the lesser of one or the ratio of the district's
average building age to 35 years, plus the cost approved by the commissioner for indoor
air quality, fire alarm and suppression, and asbestos abatement projects under section
123B.57, subdivision 6, with an estimated cost of $100,000 or more per site, plus (ii) for a
school district with an approved voluntary prekindergarten program under section 124D.151,
the cost approved by the commissioner for remodeling existing instructional space to
accommodate prekindergarten instruction, or (2) the sum of (i) the amount the district would
have qualified for under Minnesota Statutes 2014, section 123B.57, Minnesota Statutes
2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591, and (ii) for a school
district with an approved voluntary prekindergarten program under section 124D.151, the
cost approved by the commissioner for remodeling existing instructional space to
accommodate prekindergarten instruction.
deleted text end

deleted text begin (b) For fiscal year 2018 only, long-term facilities maintenance revenue equals the greater
of (1) the sum of (i) $292 times the district's adjusted pupil units times the lesser of one or
the ratio of the district's average building age to 35 years, plus (ii) the cost approved by the
commissioner for indoor air quality, fire alarm and suppression, and asbestos abatement
projects under section 123B.57, subdivision 6, with an estimated cost of $100,000 or more
per site, plus (iii) for a school district with an approved voluntary prekindergarten program
under section 124D.151, the cost approved by the commissioner for remodeling existing
instructional space to accommodate prekindergarten instruction, or (2) the sum of deleted text end deleted text begin (i) the
amount the district would have qualified for under Minnesota Statutes 2014, section 123B.57,
Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591,
and (ii) for a school district with an approved voluntary prekindergarten program under
section 124D.151, the cost approved by the commissioner for remodeling existing
instructional space to accommodate prekindergarten instruction.
deleted text end

deleted text begin (c) deleted text end new text begin (a) new text end For fiscal year 2019 and later, long-term facilities maintenance revenue equals
the greater of (1) the sum of (i) $380 times the district's adjusted pupil units times the lesser
of one or the ratio of the district's average building age to 35 years, plus (ii) the cost approved
by the commissioner for indoor air quality, fire alarm and suppression, and asbestos
abatement projects under section 123B.57, subdivision 6, with an estimated cost of $100,000
or more per site, plus (iii) for a school district with an approved voluntary prekindergarten
program under section 124D.151, the cost approved by the commissioner for remodeling
existing instructional space to accommodate prekindergarten instruction, or (2) the sum of
(i) the amount the district would have qualified for under Minnesota Statutes 2014, section
123B.57, Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section
123B.591, and (ii) for a school district with an approved voluntary prekindergarten program
under section 124D.151, the cost approved by the commissioner for remodeling existing
instructional space to accommodate prekindergarten instruction.

deleted text begin (d) deleted text end new text begin (b) new text end Notwithstanding deleted text begin paragraphs deleted text end new text begin paragraph new text end (a), deleted text begin (b), and (c), deleted text end a school district that
qualified for eligibility under Minnesota Statutes 2014, section 123B.59, subdivision 1,
paragraph (a), for fiscal year 2010 remains eligible for funding under this section as a district
that would have qualified for eligibility under Minnesota Statutes 2014, section 123B.59,
subdivision 1, paragraph (a), for fiscal year 2017 and later.

Subd. 2.

Long-term facilities maintenance revenue for a charter school.

deleted text begin (a) For fiscal
year 2017 only, long-term facilities maintenance revenue for a charter school equals $34
times the adjusted pupil units.
deleted text end

deleted text begin (b) For fiscal year 2018 only, long-term facilities maintenance revenue for a charter
school equals $85 times the adjusted pupil units.
deleted text end

deleted text begin (c) deleted text end For fiscal year 2019 and later, long-term facilities maintenance revenue for a charter
school equals $132 times the adjusted pupil units.

Subd. 3.

Intermediate districts and other cooperative units.

Upon approval through
the adoption of a resolution by each member district school board of an intermediate district
or other cooperative units under section 123A.24, subdivision 2, and the approval of the
commissioner of education, a school district may include in its authority under this section
a proportionate share of the long-term maintenance costs of the intermediate district or
cooperative unit. The cooperative unit may issue bonds to finance the project costs or levy
for the costs, using long-term maintenance revenue transferred from member districts to
make debt service payments or pay project costs. Authority under this subdivision is in
addition to the authority for individual district projects under subdivision 1.

Subd. 4.

Facilities plans.

(a) To qualify for revenue under this section, a school district
or intermediate district, not including a charter school, must have a ten-year facility plan
adopted by the school board and approved by the commissioner. The plan must include
provisions for implementing a health and safety program that complies with health, safety,
and environmental regulations and best practices, including indoor air quality management
and remediation of lead hazards. new text begin The plan may include provisions for enhancing school
safety through physical modifications to school facilities authorized under subdivision 4a.
new text end

(b) The district must annually update the plan, submit the plan to the commissioner for
approval by July 31, and indicate whether the district will issue bonds to finance the plan
or levy for the costs.

(c) For school districts issuing bonds to finance the plan, the plan must include a debt
service schedule demonstrating that the debt service revenue required to pay the principal
and interest on the bonds each year will not exceed the projected long-term facilities revenue
for that year.

new text begin Subd. 4a. new text end

new text begin School safety facility enhancements. new text end

new text begin A school district may include in its
facilities plan a school safety facilities plan. School safety projects may include remodeling
or new construction for school security enhancements, public announcement systems,
emergency communications devices, or equipment and facility modifications related to
violence prevention and facility security.
new text end

Subd. 5.

Bond authorization.

(a) A school district may issue general obligation bonds
under this section to finance facilities plans approved by its board and the commissioner.
Chapter 475, except sections 475.58 and 475.59, must be complied with. The authority to
issue bonds under this section is in addition to any bonding authority authorized by this
chapter or other law. The amount of bonding authority authorized under this section must
be disregarded in calculating the bonding or net debt limits of this chapter, or any other law
other than section 475.53, subdivision 4.

(b) At least 20 days before the earliest of solicitation of bids, the issuance of bonds, or
the final certification of levies under subdivision 6, the district must publish notice of the
intended projects, the amount of the bond issue, and the total amount of district indebtedness.

(c) The portion of revenue under this section for bonded debt must be recognized in the
debt service fund.

Subd. 6.

Levy authorization.

A district may levy for costs related to an approved plan
under subdivision 4 as follows:

(1) if the district has indicated to the commissioner that bonds will be issued, the district
may levy for the principal and interest payments on outstanding bonds issued under
subdivision 5 after reduction for any aid receivable under subdivision 9;

(2) if the district has indicated to the commissioner that the plan will be funded through
levy, the district may levy according to the schedule approved in the plan after reduction
for any aid receivable under subdivision 9; or

(3) if the debt service revenue for a district required to pay the principal and interest on
bonds issued under subdivision 5 exceeds the district's long-term facilities maintenance
revenue for the same fiscal year, the district's general fund levy must be reduced by the
amount of the excess.

Subd. 7.

Long-term facilities maintenance equalization revenue.

deleted text begin (a) For fiscal year
2017 only, a district's long-term facilities maintenance equalization revenue equals the lesser
of (1) $193 times the adjusted pupil units or (2) the district's revenue under subdivision 1.
deleted text end

deleted text begin (b) For fiscal year 2018 only, a district's long-term facilities maintenance equalization
revenue equals the lesser of (1) $292 times the adjusted pupil units or (2) the district's
revenue under subdivision 1.
deleted text end

deleted text begin (c) deleted text end new text begin (a) new text end For fiscal year 2019 and later, a district's long-term facilities maintenance
equalization revenue equals the lesser of (1) $380 times the adjusted pupil units or (2) the
district's revenue under subdivision 1.

deleted text begin (d) deleted text end new text begin (b) new text end Notwithstanding deleted text begin paragraphs deleted text end new text begin paragraph new text end (a) deleted text begin to (c) deleted text end , a district's long-term facilities
maintenance equalization revenue must not be less than the lesser of the district's long-term
facilities maintenance revenue or the amount of aid the district received for fiscal year 2015
under new text begin Minnesota Statutes 2014, new text end section 123B.59, subdivision 6.

Subd. 8.

Long-term facilities maintenance equalized levy.

(a) deleted text begin For fiscal year 2017
and later, deleted text end A district's long-term facilities maintenance equalized levy equals the district's
long-term facilities maintenance equalization revenue minus the greater of:

(1) the lesser of the district's long-term facilities maintenance equalization revenue or
the amount of aid the district received for fiscal year 2015 under Minnesota Statutes 2014,
section 123B.59, subdivision 6; or

(2) the district's long-term facilities maintenance equalization revenue times the greater
of (i) zero or (ii) one minus the ratio of its adjusted net tax capacity per adjusted pupil unit
in the year preceding the year the levy is certified to 123 percent of the state average adjusted
net tax capacity per adjusted pupil unit for all school districts in the year preceding the year
the levy is certified.

(b) For purposes of this subdivision, "adjusted net tax capacity" means the value described
in section 126C.01, subdivision 2, paragraph (b).

Subd. 8a.

Long-term facilities maintenance unequalized levy.

deleted text begin For fiscal year 2017
and later, deleted text end A district's long-term facilities maintenance unequalized levy equals the difference
between the district's revenue under subdivision 1 and the district's equalization revenue
under subdivision 7.

Subd. 9.

Long-term facilities maintenance equalized aid.

deleted text begin For fiscal year 2017 and
later, deleted text end A district's long-term facilities maintenance equalized aid equals its long-term facilities
maintenance equalization revenue minus its long-term facilities maintenance equalized levy
times the ratio of the actual equalized amount levied to the permitted equalized levy.

Subd. 10.

Allowed uses for long-term facilities maintenance revenue.

(a) A district
may use revenue under this section for any of the following:

(1) deferred capital expenditures and maintenance projects necessary to prevent further
erosion of facilities;

(2) increasing accessibility of school facilities;

(3) health and safety capital projects under section 123B.57;

new text begin (4) school safety facility enhancements authorized under subdivision 4a; new text end or

deleted text begin (4) deleted text end new text begin (5) new text end by board resolution, to transfer money from the general fund reserve for long-term
facilities maintenance to the debt redemption fund to pay the amounts needed to meet, when
due, principal and interest on general obligation bonds issued under subdivision 5.

(b) A charter school may use revenue under this section for any purpose related to the
school new text begin , including school safety facility enhancements new text end .

Subd. 11.

Restrictions on long-term facilities maintenance revenue.

Notwithstanding
subdivision 10, new text begin for projects other than school safety facility enhancements, new text end long-term
facilities maintenance revenue may not be used:

(1) for the construction of new facilities, remodeling of existing facilities, or the purchase
of portable classrooms;

(2) to finance a lease purchase agreement, installment purchase agreement, or other
deferred payments agreement;

(3) for energy-efficiency projects under section 123B.65, for a building or property or
part of a building or property used for postsecondary instruction or administration, or for a
purpose unrelated to elementary and secondary education; or

(4) for deleted text begin violence prevention and facility security, deleted text end ergonomics deleted text begin , or emergency
communication devices deleted text end .

Subd. 12.

Reserve account.

The portion of long-term facilities maintenance revenue
not recognized under subdivision 5, paragraph (c), must be maintained in a reserve account
within the general fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2020 and later.
new text end

Sec. 2.

Minnesota Statutes 2018, section 123B.61, is amended to read:

123B.61 PURCHASE OF CERTAIN EQUIPMENT.

new text begin (a) new text end The board of a district may issue general obligation certificates of indebtedness or
capital notes subject to the district debt limits to:

deleted text begin (a) deleted text end new text begin (1) new text end purchase vehicles, computers, telephone systems, cable equipment, photocopy
and office equipment, technological equipment for instruction, new text begin public announcement systems,
emergency communications devices, other equipment related to violence prevention and
facility security, new text end and other capital equipment having an expected useful life at least as long
as the terms of the certificates or notes;

deleted text begin (b) deleted text end new text begin (2) new text end purchase computer hardware and software, without regard to its expected useful
life, whether bundled with machinery or equipment or unbundled, together with application
development services and training related to the use of the computer; and

deleted text begin (c) deleted text end new text begin (3) new text end prepay special assessments.

new text begin (b) new text end The certificates or notes must be payable in not more than ten years and must be
issued on the terms and in the manner determined by the board, except that certificates or
notes issued to prepay special assessments must be payable in not more than 20 years. The
certificates or notes may be issued by resolution and without the requirement for an election.
The certificates or notes are general obligation bonds for purposes of section 126C.55.

new text begin (c) new text end A tax levy must be made for the payment of the principal and interest on the
certificates or notes, in accordance with section 475.61, as in the case of bonds. The sum
of the tax levies under this section and section 123B.62 for each year must not exceed the
lesser new text begin of the sum new text end of the amount of the district's total operating capital revenue new text begin and safe
schools revenue new text end or the sum of the district's levy in the general and community service funds
excluding the adjustments under this section for the year preceding the year the initial debt
service levies are certified.

new text begin (d) new text end The district's general fund levy for each year must be reduced by the sum of new text begin :
new text end

(1) the amount of the tax levies for debt service certified for each year for payment of
the principal and interest on the certificates or notes issued under this section as required
by section 475.61 deleted text begin , deleted text end new text begin ;
new text end

(2) the amount of the tax levies for debt service certified for each year for payment of
the principal and interest on bonds issued under section 123B.62 deleted text begin , deleted text end new text begin ; new text end and

(3) any excess amount in the debt redemption fund used to retire bonds, certificates, or
notes issued under this section or section 123B.62 after April 1, 1997, other than amounts
used to pay capitalized interest.

new text begin (e) new text end If the district's general fund levy is less than the amount of the reduction, the balance
shall be deducted first from the district's community service fund levy, and next from the
district's general fund or community service fund levies for the following year.

new text begin (f) new text end A district using an excess amount in the debt redemption fund to retire the certificates
or notes shall report the amount used for this purpose to the commissioner by July 15 of the
following fiscal year. A district having an outstanding capital loan under section 126C.69
or an outstanding debt service loan under section 126C.68 must not use an excess amount
in the debt redemption fund to retire the certificates or notes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 3.

Minnesota Statutes 2018, section 126C.44, is amended to read:

126C.44 SAFE SCHOOLS deleted text begin LEVY deleted text end new text begin REVENUE new text end .

new text begin Subdivision 1. new text end

new text begin Safe schools revenue. new text end

new text begin (a) A school district's total safe schools revenue
equals the sum of:
new text end

new text begin (1) the greater of $30,000 or $54 per adjusted pupil unit;
new text end

new text begin (2) the amounts under subdivision 6; and
new text end

new text begin (3) for a district not accessing revenue under subdivision 6, the amount under subdivision
7.
new text end

new text begin (b) A school district's equalized safe schools revenue equals $36 times the district's
adjusted pupil units for that year.
new text end

new text begin (c) A charter school's safe schools revenue equals $18 times its adjusted pupil units for
that year. The revenue must be reserved and used only for costs associated with safe schools
activities authorized under subdivision 5, paragraph (a), clauses (1) to (9), or for building
lease expenses not funded by charter school building lease aid that are attributable to facility
security enhancements made by the landlord after March 1, 2019.
new text end

new text begin Subd. 2. new text end

new text begin Safe schools equalized levy. new text end

deleted text begin (a) Each district may make a levy on all taxable
property located within the district for the purposes specified in this section. The maximum
amount which may be levied for all costs under this section shall be equal to $36 multiplied
by the district's deleted text end new text begin A school district's safe school equalized levy equals the product of its
equalized safe schools revenue under subdivision 1 times the lesser of one or the ratio of
its adjusted net tax capacity per new text end adjusted pupil deleted text begin units for the school year deleted text end new text begin unit to 68.5 percent
of the statewide adjusted net tax capacity equalizing factor new text end .

new text begin Subd. 3. new text end

new text begin Safe schools aid. new text end

new text begin (a) A school district's safe schools aid equals the sum of:
new text end

new text begin (1) $18 times its adjusted pupil units for that year;
new text end

new text begin (2) its safe schools equalization aid equal to the difference between its safe schools
equalized revenue minus its safe schools equalized levy;
new text end

new text begin (3) its cooperative unit aid under subdivision 7; and
new text end

new text begin (4) for fiscal year 2020 only, $6.50 times its adjusted pupil units for that year for school
district members of intermediate school districts.
new text end

new text begin (b) A charter school's safe schools aid equals its safe schools revenue.
new text end

new text begin Subd. 4. new text end

new text begin Revenue reserved. new text end

deleted text begin The proceeds of the levy deleted text end new text begin A school district's safe schools
revenue new text end must be reserved and used for deleted text begin directly funding deleted text end the deleted text begin following deleted text end purposes deleted text begin or for
reimbursing the cities and counties who contract with the district for the following purposes: deleted text end new text begin
authorized in subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Revenue uses. new text end

new text begin (a) A school district must use its safe schools revenue for the
following:
new text end

(1) to pay the costs incurred for the salaries, benefits, and transportation costs of peace
officers and sheriffs for liaison in services in the district's schools new text begin , whether through contract
or reimbursement to the city or county employing authority new text end ;

(2) to pay the costs for a drug abuse prevention program as defined in section 609.101,
subdivision 3, paragraph (e), in the elementary schools;

(3) to pay the costs for a gang resistance education training curriculum in the district's
schools;

(4) to pay the costs for security in the district's schools and on school property;

(5) to pay the costs for other crime prevention, drug abuse, student and staff safety,
voluntary opt-in suicide prevention tools, and violence prevention measures taken by the
school district;

(6) to pay costs for licensed school counselors, licensed school nurses, licensed school
social workers, licensed school psychologists, and licensed alcohol and chemical dependency
counselors to help provide early responses to problems;

(7) to pay for facility security enhancements including laminated glass, public
announcement systems, emergency communications devices, and equipment and facility
modifications related to violence prevention and facility security;

(8) to pay for costs associated with improving the school climate; deleted text begin or
deleted text end

(9) to pay costs for colocating and collaborating with mental health professionals who
are not district employees or contractors deleted text begin . deleted text end new text begin ; or
new text end

new text begin (10) by board resolution, to transfer money into the debt redemption fund to pay the
amounts needed to meet, when due, principal and interest payments on obligations issued
under sections 123B.61 and 123B.62 for purposes included in clause (7).
new text end

(b) For expenditures under paragraph (a), clause (1), the district must initially attempt
to contract for services to be provided by peace officers or sheriffs with the police department
of each city or the sheriff's department of the county within the district containing the school
receiving the services. If a local police department or a county sheriff's department does
not wish to provide the necessary services, the district may contract for these services with
any other police or sheriff's department located entirely or partially within the school district's
boundaries.

new text begin Subd. 6. new text end

new text begin Intermediate school districts. new text end

deleted text begin (c) deleted text end A school district that is a member of an
intermediate school district may deleted text begin include in deleted text end new text begin add to new text end its new text begin levy new text end authority under this section the
costs associated with safe schools activities authorized under deleted text begin paragraph (a) deleted text end new text begin subdivision 5 new text end
for intermediate school district programs. This new text begin levy new text end authority must not exceed $15 times
the adjusted pupil units of the member districts. This new text begin levy new text end authority is in addition to any
other authority authorized under this section. Revenue raised under this deleted text begin paragraph deleted text end new text begin subdivision new text end
must be transferred to the intermediate school district.

new text begin Subd. 7. new text end

new text begin Other cooperative units. new text end

new text begin A school district that is a member of a cooperative
unit defined under section 123A.24, subdivision 2, other than a member of an intermediate
school district, is eligible for additional safe schools aid equal to $7.50 times its adjusted
pupil units for that year. Revenue raised under this subdivision must be transferred to the
cooperative unit.
new text end

new text begin Subd. 8. new text end

new text begin Reporting. new text end

new text begin A school district or charter school receiving revenue under this
section must annually report safe schools expenditures to the commissioner, in the form
and manner specified by the commissioner. The report must include spending by functional
area, any new staff positions hired, and revenue uses under subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2020 and later.
new text end

Sec. 4. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the specified purposes.
new text end

new text begin Subd. 2. new text end

new text begin Safe schools aid. new text end

new text begin (a) For safe schools aid under Minnesota Statutes, section
126C.44:
new text end

	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2020 new text end
	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2021 new text end

new text begin (b) For fiscal year 2020 only, each district's safe schools state aid equals its safe schools
revenue for fiscal year 2020 minus the safe schools levy certified by the school district for
taxes payable in 2019.
new text end

new text begin Subd. 3. new text end

new text begin Physical security audit grants for public schools. new text end

new text begin (a) For transfer to the
commissioner of public safety for grants to school districts and charter schools to reimburse
applicants up to 100 percent of the cost for an audit of the physical security of public school
campuses and crisis management policies adopted pursuant to Minnesota Statutes, section
121A.035, subdivision 2:
new text end

new text begin $ new text end

new text begin 2,000,000 new text end

new text begin ..... new text end

new text begin 2020 new text end

new text begin (b) The commissioner of public safety must establish specific eligibility and application
criteria including a requirement that audits be conducted by consultants holding professional
certification deemed acceptable by the commissioner, including but not limited to a Certified
Protection Professional certification from the American Society for Industrial Security.
new text end

new text begin (c) This is a onetime appropriation.
new text end

new text begin Subd. 4. new text end

new text begin School resource officer training grants. new text end

new text begin (a) For grants to reimburse school
districts and charter schools for up to one-half of the costs of school resource officer training:
new text end

new text begin $ new text end

new text begin 400,000 new text end

new text begin ..... new text end

new text begin 2020 new text end

new text begin (b) The commissioner and the director of the Minnesota School Safety Center are
encouraged to develop school resource officer training guidelines and provide school districts
and charter schools a list of approved school resource officer training programs.
new text end

new text begin (c) A district or charter school seeking a grant under this subdivision must submit an
application in the form and manner specified by the commissioner of education.
Reimbursement must not exceed $500 per officer. The commissioner must prorate grant
amounts if the appropriation is insufficient to fully fund the state's share of the training.
new text end

new text begin (d) A recipient school district or charter school and the local law enforcement agency
must enter into an agreement to pay for the remaining training costs for school resource
officer training. The school district or charter school and the law enforcement agency may
seek private funds to pay for the local share of the school resource officer training costs.
new text end

new text begin (e) This is a onetime appropriation.
new text end

new text begin Subd. 5. new text end

new text begin Suicide prevention training for teachers. new text end

new text begin (a) For a grant to a nationally
recognized organization to offer teachers evidence-based online training on suicide prevention
and engaging with students experiencing mental distress:
new text end

new text begin $ new text end

new text begin 273,000 new text end

new text begin ..... new text end

new text begin 2020 new text end

new text begin (b) This is a onetime appropriation.
new text end

new text begin (c) The recipient of the suicide prevention training grant under this subdivision must
make the training accessible to all Minnesota school districts; cooperative units defined
under Minnesota Statutes, section 123A.24, subdivision 2; tribal schools; and charter schools.
new text end