HF 2850

as introduced - 86th Legislature (2009 - 2010) Posted on 02/10/2010 03:17pm

A bill for an act
relating to education finance; providing additional flexibility for school districts
that sell or exchange school buildings; amending Minnesota Statutes 2008,
section 123B.51, subdivision 6.

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

Section 1.

Minnesota Statutes 2008, section 123B.51, subdivision 6, is amended to read:

Subd. 6.

Proceeds of sale or exchange.

(a) Proceeds of the sale or exchange
of school buildings or real property of the district must be used as provided in this
subdivision.

(b) In districts with outstanding bonds, the proceeds of the sale or exchange shall
first be deposited in the debt retirement fund of the district in an amount sufficient to
meet when due that percentage of the principal and interest payments for outstanding
bonds which is ascribable to the payment of expenses necessary and incidental to the
construction or purchase of the particular building or property which is sold.

(c) After satisfying the requirements of paragraph (b), a district with outstanding
bonds may deposit proceeds of the sale or exchange in its new text begin undesignated new text end general fund
deleted text begin reserved for operating capital account if the amount deposited is used for the following: deleted text end new text begin .
new text end

deleted text begin (1) for expenditures for the cleanup of polychlorinated biphenyls, if the method for
cleanup is approved by the department;
deleted text end

deleted text begin (2) for capital expenditures for the betterment, as defined in section 475.51,
subdivision 8, of district-owned school buildings; or
deleted text end

deleted text begin (3) to replace the building or property sold.
deleted text end

deleted text begin (d) In a district with outstanding bonds, the amount of the proceeds of the sale or
exchange remaining after the application of paragraphs (b) and (c), which is sufficient
to meet when due that percentage of the principal and interest payments for the district's
outstanding bonds which is not governed by paragraph (b), shall be deposited in the
debt retirement fund.
deleted text end

deleted text begin (e) Any proceeds of the sale or exchange remaining in districts with outstanding
bonds after the application of paragraphs (b), (c), and (d), and all proceeds of the sale or
exchange in districts without outstanding bonds shall be deposited in the general fund
reserved for operating capital account of the district.
deleted text end

deleted text begin (f) Notwithstanding paragraphs (c) and (d), a district with outstanding bonds
may deposit in its general fund reserved for operating capital account and use for any
lawful operating capital expenditure without the reduction of any levy limitation the
same percentage of the proceeds of the sale or exchange of a building or property as the
percentage of the initial cost of purchasing or constructing the building or property which
was paid using revenue from the general fund reserved for operating capital account.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for buildings sold or exchanged
on or after July 1, 2010.
new text end