HF 1407

as introduced - 88th Legislature (2013 - 2014) Posted on 03/11/2013 02:38pm

A bill for an act
relating to education finance; simplifying the allocation of contracted pupil
transportation expenses across categories; amending Minnesota Statutes 2012,
section 123B.92, subdivision 5.

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

Section 1.

Minnesota Statutes 2012, section 123B.92, subdivision 5, is amended to read:

Subd. 5.

District reports.

(a) Each district must report data to the department as
required by the department to account for transportation expenditures.

(b) Salaries and fringe benefits of district employees whose primary duties are
other than transportation, including central office administrators and staff, building
administrators and staff, teachers, social workers, school nurses, and instructional aides,
must not be included in a district's transportation expenditures, except that a district may
include salaries and benefits according to paragraph (c) for (1) an employee designated
as the district transportation director, (2) an employee providing direct support to the
transportation director, or (3) an employee providing direct transportation services such as
a bus driver or bus aide.

(c) Salaries and fringe benefits of the district employees listed in paragraph (b),
clauses (1), (2), and (3), who work part time in transportation and part time in other areas
must not be included in a district's transportation expenditures unless the district maintains
documentation of the employee's time spent on pupil transportation matters in the form
and manner prescribed by the department.

(d) new text begin A school district that contracts for transportation service may allocate
transportation expense to transportation categories based upon contract rates. Districts
may only allocate transportation expense to transportation categories based upon contract
rates if contract rates are reasonably consistent on a cost-per-hour, cost-per-mile,
cost-per-route, or cost-per-student basis. In order to allocate transportation expense based
upon contract rates, a school district must be able to demonstrate that variances in the
application of transportation cost basis rates are appropriate.
new text end

new text begin (e) new text end Pupil transportation expenditures, excluding expenditures for capital outlay,
leased buses, student board and lodging, crossing guards, and aides on buses, must be
allocated among transportation categories based on cost-per-mile or cost-per-student
regardless of whether the transportation services are provided on district-owned or
contractor-owned school buses. Expenditures for school bus driver salaries and fringe
benefits may either be directly charged to the appropriate transportation category or may
be allocated among transportation categories based on cost-per-mile or cost-per-student.
Expenditures by private contractors or individuals who provide transportation exclusively
in one transportation category must be charged directly to the appropriate transportation
category. Transportation services provided by contractor-owned school bus companies
incorporated under different names but owned by the same individual or group of
individuals must be treated as the same company for cost allocation purposes.

deleted text begin (e) Notwithstanding paragraph (d), districts contracting for transportation services
are exempt from the standard cost allocation method for authorized and nonauthorized
transportation categories if the district: (1) bids its contracts separately for authorized and
nonauthorized transportation categories and for special transportation separate from regular
and excess transportation; (2) receives bids or quotes from more than one vendor for these
transportation categories; and (3) the district's cost-per-mile does not vary more than ten
percent among categories, excluding salaries and fringe benefits of bus aides. If the costs
reported by the district for contractor-owned operations vary by more than ten percent
among categories, the department shall require the district to reallocate its transportation
costs, excluding salaries and fringe benefits of bus aides, among all categories.
deleted text end

new text begin (f) The department may reclassify a school district's transportation expense from
based upon contract rates to based upon cost-per-mile or cost-per-student for state aid
purposes if the school district transportation expense reporting is inconsistent with similar
school districts and if the school district is not able to demonstrate that variances in the
application of transportation cost basis rates are appropriate.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2014
and later.
new text end