HF 3478

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 03/11/2010 10:44am

A bill for an act
relating to education finance; reducing school district mandates; allowing
additional flexibility; authorizing certain fund transfers; amending Minnesota
Statutes 2008, sections 120A.41; 123A.15, subdivision 5; 123A.32, subdivision
5; 123B.12; 123B.29; 123B.38; 123B.51, subdivision 5; 123B.52, subdivisions
1, 1a; 123B.79, by adding a subdivision; 123B.80, subdivision 3; 126C.54;
205A.07; 645.13; Minnesota Statutes 2009 Supplement, sections 120A.40;
123B.71, subdivision 12; 126C.44; Laws 2009, chapter 96, article 2, section 64.

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

Section 1.

Minnesota Statutes 2009 Supplement, section 120A.40, is amended to read:

120A.40 SCHOOL CALENDAR.

deleted text begin (a) Except for learning programs during summer, flexible learning year programs
authorized under sections 124D.12 to 124D.127, and learning year programs under section
124D.128, deleted text end A district deleted text begin must not deleted text end new text begin may new text end commence an elementary or secondary school year
before Labor Day, except deleted text begin as provided under paragraph (b) deleted text end new text begin a district must not schedule
a student instruction day on the Thursday or Friday immediately preceding Labor Day new text end .
Days devoted to teachers' workshops may be held new text begin on the Thursday or Friday new text end before
Labor Day. Districts that enter into cooperative agreements are encouraged to adopt
similar school calendars.

deleted text begin (b) A district may begin the school year on any day before Labor Day:
deleted text end

deleted text begin (1) to accommodate a construction or remodeling project of $400,000 or more
affecting a district school facility;
deleted text end

deleted text begin (2) if the district has an agreement under section 123A.30, 123A.32, or 123A.35
with a district that qualifies under clause (1); or
deleted text end

deleted text begin (3) if the district agrees to the same schedule with a school district in an adjoining
state.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2010-2011 school year and
later.
new text end

Sec. 2.

Minnesota Statutes 2008, section 120A.41, is amended to read:

120A.41 LENGTH OF SCHOOL YEAR; DAYS OF INSTRUCTION.

new text begin (a) new text end A school board's annual school calendar must include at least the number of days
of student instruction the board formally adopted as its school calendar at the beginning of
the 1996-1997 school year.

new text begin (b) Notwithstanding paragraph (a), any school district that operated for at least 178
instructional or professional development days during the 2008-2009 school year may
reduce its calendar to not less than 178 calendar days, provided that the total number of
student contact hours is not reduced below the total number of student contact hours
for the 2008-2009 school year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2010-2011 school year and
later.
new text end

Sec. 3.

Minnesota Statutes 2008, section 123A.15, subdivision 5, is amended to read:

Subd. 5.

Notice and public hearing on proposed agreement.

new text begin (a) new text end Before entering
into an agreement, the board of each member district must publish new text begin :
new text end

new text begin (1) new text end a summary of the proposed agreement and its effect upon the district at least
once in a newspaper of general circulation in the district new text begin ; or
new text end

new text begin (2) publish a notice of the summary under clause (1) at least once in a newspaper of
general circulation in the district and publish the summary of the proposed agreement and
its effect upon the district on the district's official Web site new text end .

new text begin (b) new text end The board must conduct a public hearing on the proposed agreement not more
than ten days after the notice and at least 30 days before entering into an agreement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2008, section 123A.32, subdivision 5, is amended to read:

Subd. 5.

Notice; informational meeting.

deleted text begin Prior to deleted text end new text begin Before new text end entering into an
agreement, the board shall consult with the community at an informational meeting. The
board must publish notice of the meeting in the official newspaper of the district new text begin or on
the district's official Web site new text end and may send written new text begin or electronic new text end notice of the meeting to
parents of pupils who would be affected.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2008, section 123B.12, is amended to read:

123B.12 INSUFFICIENT FUNDS TO PAY ORDERS.

(a) In the event that a district or a cooperative unit defined in section 123A.24,
subdivision 2, has insufficient funds to pay its usual lawful current obligations, subject to
section 471.69, the board may enter into agreements with banks or any person to take its
orders. Any order drawn, after having been presented to the treasurer for payment and not
paid for want of funds shall be endorsed by the treasurer by putting on the back thereof
the words "not paid for want of funds," giving the date of endorsement and signed by the
treasurer. A record of such presentment, nonpayment and endorsement shall be made by
the treasurer. The treasurer shall serve a written notice upon the payee or the payee's
assignee, personally, or by mail, when the treasurer is prepared to pay such orders. The
notice may be directed to the payee or the payee's assignee at the address given in writing
by such payee or assignee to such treasurer, at any time prior to the service of such notice.
No order shall draw any interest if such address is not given when the same is unknown to
the treasurer, and no order shall draw any interest after the service of such notice.

(b) A district may enter, subject to section 471.69, into a line of credit agreement with
a financial institution. The amount of credit available must not exceed deleted text begin 95 deleted text end new text begin 380 new text end percent of
average expenditure per month of operating expenditures in the previous fiscal year. Any
amount advanced must be repaid no later than deleted text begin 45 deleted text end new text begin 120 new text end days after the day of advancement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2008, section 123B.29, is amended to read:

123B.29 SALE AT AUCTION.

Notwithstanding sections 123B.52, subdivision 1, 471.345 or any other law, the
board of a school district or of a cooperative center for vocational education may, in lieu
of advertising for bids, sell at public auction to the highest responsible bidder a building
constructed or to be constructed by a secondary or postsecondary school student or class
as a school assignment. A board shall publish notice of a sale at least two weeks before
the sale in the official newspaper of the district, or in the case of a cooperative center, in
the official deleted text begin newspapers deleted text end new text begin newspaper new text end of each deleted text begin of the deleted text end member deleted text begin districts deleted text end new text begin district new text end , and may, at
its discretion, publish additional notice in the official paper or elsewhere new text begin , including an
official board or district Web site new text end . A building may be withdrawn from sale deleted text begin prior to the
completion of deleted text end new text begin before completing new text end the sale unless the auction has been announced to be
without reserve. If the sale is made at public auction, a duly licensed auctioneer must be
retained to conduct the sale. The auctioneer shall be paid from the proceeds of the sale or
from any funds available to the board which are not otherwise restricted or encumbered.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2008, section 123B.38, is amended to read:

123B.38 HEARING.

Before deleted text begin the initiation of deleted text end new text begin initiating new text end any fee not authorized or prohibited by sections
123B.36 and 123B.37, the local board must hold a public hearing within the district upon
three weeks published notice in the district's official newspaper new text begin or on the district's official
Web site new text end , or such notice as is otherwise required for a regular board meeting given three
weeks before the hearing on deleted text begin the proposed adoption of the deleted text end new text begin a proposal to adopt a new text end policy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2008, section 123B.51, subdivision 5, is amended to read:

Subd. 5.

Schoolhouse closing.

The board may close a schoolhouse only after a
public hearing on the question of the necessity and practicability of the proposed closing.
Published notice of the hearing shall be given for two weeks in the official newspaper of
the district. The new text begin district may specify the new text end time and place of the meeting, the description
and location of the schoolhouse, and a statement of the reasons for the closing deleted text begin must
be specified in the notice deleted text end new text begin on the district's official Web site new text end . Parties requesting to give
testimony for and against the proposal shall be heard by the board before it makes a final
decision to close or not to close the schoolhouse.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2008, section 123B.52, subdivision 1, is amended to read:

Subdivision 1.

Contracts.

A contract for work or labor, or for the purchase of
furniture, fixtures, or other property, except books registered under the copyright laws, or
for the construction or repair of school houses, the estimated cost or value of which shall
exceed that specified in section 471.345, subdivision 3, must not be made by the school
board without first advertising for bids or proposals by two weeks' published notice in the
official newspaper. deleted text begin This deleted text end new text begin That portion of the new text end notice deleted text begin must state deleted text end new text begin stating new text end the time and place
deleted text begin of deleted text end new text begin for new text end receiving bids and deleted text begin contain a brief description of deleted text end new text begin describing new text end the subject matter new text begin of the
bids must be published in the official district newspaper or on the district's official Web site new text end .

Additional publication in the official newspaper or elsewhere new text begin , including a district's
official Web site, new text end may be made as the board shall deem necessary.

After taking into consideration conformity with the specifications, terms of delivery,
and other conditions imposed in the call for bids, every such contract for which a call for
bids has been issued must be awarded to the lowest responsible bidder, be duly executed
in writing, and be otherwise conditioned as required by law. The person to whom the
contract is awarded shall give a sufficient bond to the board for its faithful performance.
Notwithstanding section 574.26 or any other law to the contrary, on a contract limited
to the purchase of a finished tangible product, a board may require, at its discretion, a
performance bond of a contractor in the amount the board considers necessary. A record
must be kept of all bids, with names of bidders and amount of bids, and with the successful
bid indicated thereon. A bid containing an alteration or erasure of any price contained in
the bid which is used in determining the lowest responsible bid must be rejected unless the
alteration or erasure is corrected as provided in this section. An alteration or erasure may
be crossed out and the correction thereof printed in ink or typewritten adjacent thereto and
initialed in ink by the person signing the bid. In the case of identical low bids from two or
more bidders, the board may, at its discretion, utilize negotiated procurement methods
with the tied low bidders for that particular transaction, so long as the price paid does not
exceed the low tied bid price. In the case where only a single bid is received, the board
may, at its discretion, negotiate a mutually agreeable contract with the bidder so long as
the price paid does not exceed the original bid. If no satisfactory bid is received, the
board may readvertise. Standard requirement price contracts established for supplies or
services to be purchased by the district must be established by competitive bids. Such
standard requirement price contracts may contain escalation clauses and may provide for a
negotiated price increase or decrease based upon a demonstrable industrywide or regional
increase or decrease in the vendor's costs. Either party to the contract may request that the
other party demonstrate such increase or decrease. The term of such contracts must not
exceed two years with an option on the part of the district to renew for an additional two
years. Contracts for deleted text begin the purchase of deleted text end new text begin purchasing new text end perishable food items, except milk for
school lunches and vocational training programs, in any amount may be made by direct
negotiation by obtaining two or more written quotations for the purchase or sale, when
possible, without advertising for bids or otherwise complying with the requirements of
this section or section 471.345, subdivision 3. All quotations obtained shall be kept on file
for a period of at least one year after receipt.

Every contract made without deleted text begin compliance deleted text end new text begin complying new text end with the provisions of this
section deleted text begin shall be deleted text end new text begin are new text end void. Except in the case of the destruction of buildings or injury
thereto, where the public interest would suffer by delay, contracts for repairs may be
made without advertising for bids.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2008, section 123B.52, subdivision 1a, is amended to read:

Subd. 1a.

Construction contracts.

A project labor agreement is a hiring agreement
that establishes wages, uniform work schedules, and rules for dispute resolution to manage
construction projects that generally require, among other things, payment of union dues
or fees to a labor organization or membership in or affiliation with a labor organization.
A school board must adopt at a public meeting a written resolution authorizing a project
labor agreement to construct or repair a facility through a contract or bid. The board must
publish in the official newspaper of the district new text begin and may publish on the official Web site of
the district new text end notice of the meeting at least 30 days in advance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Minnesota Statutes 2009 Supplement, section 123B.71, subdivision 12,
is amended to read:

Subd. 12.

Publication.

(a) At least 20 days but not more than 60 days before a
referendum for bonds or solicitation of bids for a project that has received a positive or
unfavorable review and comment under section 123B.70, the school board shall publish a
summary of the commissioner's review and comment of that project in the legal newspaper
of the district new text begin ; the district may publish the substance of the summary on the district's
official Web site new text end . Supplementary information new text begin in an electronic format or another format
new text end shall be available to the public.

(b) The publication requirement in paragraph (a) does not apply to alternative
facilities projects approved under section 123B.59.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2008, section 123B.79, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Account transfers. new text end

new text begin Notwithstanding any law to the contrary, on June 30
of any year, a school district may transfer funds from any account to another account within
that fund with the exception of the debt redemption fund, provided the account transfer
does not either increase a state aid obligation or grant the district additional levy authority.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

Minnesota Statutes 2008, section 123B.80, subdivision 3, is amended to read:

Subd. 3.

Approval standard.

The commissioner deleted text begin may deleted text end new text begin must new text end approve a request deleted text begin only
when an event has occurred in a district that could not have been foreseen by the district.
The event must relate directly to the fund or account involved and to the amount to be
transferred deleted text end new text begin for a fund transfer if the transfer does not increase state aid obligations to the
district or result in additional property tax authority for the district new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

Minnesota Statutes 2009 Supplement, section 126C.44, is amended to read:

126C.44 SAFE SCHOOLS LEVY.

(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 $30 multiplied by the district's adjusted
marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
used for directly funding the following purposes or for reimbursing the cities and counties
who contract with the district for the following purposes: (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; (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; or (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. For expenditures
under 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.

(b) A school district that is a member of an intermediate school district may
include in its authority under this section the costs associated with safe schools activities
authorized under paragraph (a) for intermediate school district programs. This authority
must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
This authority is in addition to any other authority authorized under this section. Revenue
raised under this paragraph must be transferred to the intermediate school district.

(c) A school district must set aside at least $3 per adjusted marginal cost pupil
unit of the safe schools levy proceeds for the purposes authorized under paragraph (a),
clause (6). deleted text begin The district must annually certify either that: (1) its total spending on services
provided by the employees listed in paragraph (a), clause (6), is not less than the sum of
its expenditures for these purposes, excluding amounts spent under this section, in the
previous year plus the amount spent under this section; or (2) that the district's full-time
equivalent number of employees listed in paragraph (a), clause (6), is not less than the
number for the previous year.
deleted text end

Sec. 15.

Minnesota Statutes 2008, section 126C.54, is amended to read:

126C.54 REPAYMENT; MATURITY DATE OF CERTIFICATES; INTEREST.

new text begin (a) new text end The proceeds of the current tax levies and future state aid receipts or other school
funds which may become available must be applied to the extent necessary to repay
such certificates and the full faith and credit of the district shall be pledged to payment
of the certificates. Certificates issued in anticipation of receipt of aids shall mature not
later than the anticipated date of receipt of the aids as estimated by the commissioner, but
in no event later than three months after the close of the school year in which issued.
Certificates issued in anticipation of receipt of taxes shall mature not later than the
anticipated date of receipt in full of the taxes, but in no event later than three months after
the close of the calendar year in which issued. The certificates must be sold at not less
than par. The certificates must bear interest after maturity until paid at the rate they bore
before maturity and any interest accruing before or after maturity must be paid from
any available school funds.

new text begin (b) Notwithstanding any contrary provision in paragraph (a), if the certificates are
issued as taxable obligations on which the interest is includable in gross income for federal
income tax purposes, certificates issued in anticipation of receipt of aids shall mature not
later than 12 months after the close of the school year in which issued and certificates
issued in anticipation of receipt of taxes shall mature not later than 12 months after the
close of the calendar year in which issued.
new text end

Sec. 16.

Minnesota Statutes 2008, section 205A.07, is amended to read:

205A.07 NOTICE.

Subdivision 1.

Publication and posting.

The clerk of a school district shall give
two weeks' published notice and give ten days' posted notice of a school district primary,
general, or special election, stating the time of the election, the location of each polling
place, the offices to be filled, and all propositions or questions to be voted upon at the
primary, general, or special election. The notice shall be posted in the administrative
offices of the school district for public inspection. new text begin In addition, the district clerk may post
the notice of an election on the district's official Web site.
new text end

Subd. 2.

Sample ballot, posting.

For every school district primary, general, or
special election, the school district clerk shall at least four days before the primary, general,
or special election, post a sample ballot in the administrative offices of the school district
for public inspection, and shall post a sample ballot in each polling place on election day. new text begin
In addition, the district clerk may post a sample ballot on the district's official Web site.
new text end

Subd. 3.

Notice to auditor.

At least 53 days deleted text begin prior to deleted text end new text begin before new text end every school district
election, the school district clerk shall provide deleted text begin a deleted text end written new text begin or electronic new text end notice to the county
auditor of each county in which the school district is located. The notice must include the
date of the election, the offices to be voted on at the election, and the title and language
for each ballot question to be voted on at the election. For the purposes of meeting the
timelines of this section, in a bond election, a notice, including a proposed question,
may be provided to the county auditor deleted text begin prior to receipt of deleted text end new text begin before receiving new text end a review and
comment from the commissioner of education and deleted text begin prior to actual initiation of deleted text end new text begin before
actually initiating new text end the election. Not less than 46 days before the election, the school district
clerk must provide written new text begin or electronic new text end notice to the county auditor of any special election
canceled under section 205A.05, subdivision 3.

Subd. 3a.

Notice to commissioner of education.

At least 49 days deleted text begin prior to deleted text end new text begin before new text end
every school district election, under section 123B.62, 123B.63, 126C.17, 126C.69,
or 475.58, the school district clerk shall provide deleted text begin a deleted text end written new text begin or electronic new text end notice to the
commissioner of education. The notice must include the date of the election and the title
and language for each ballot question to be voted on at the election. Not less than 46 days
before the election, the school district clerk must provide deleted text begin a deleted text end written new text begin or electronic new text end notice to
the commissioner of education of any special election canceled under section 205A.05,
subdivision 3. The certified vote totals for each ballot question shall be provided in a
written new text begin or electronic new text end notice to the commissioner in a timely manner.

Subd. 3b.

Notice to secretary of state.

At least 46 days deleted text begin prior to deleted text end new text begin before new text end every school
district election for which a notice is provided to the county auditor under subdivision
3, the county auditor shall provide a notice of the election to the secretary of state, in a
manner and including information prescribed by the secretary of state.

Subd. 4.

No additional posting requirements.

A school district is only required to
comply with the election posting requirements specified in the Minnesota Election Law
and the education code and is not required to comply with additional posting requirements
specified in any other law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 17.

Minnesota Statutes 2008, section 645.13, is amended to read:

645.13 TIME; PUBLICATION FOR SUCCESSIVE WEEKS.

When the term "successive weeks" is used in any law providing for the publishing of
notices, the word "weeks" shall be construed as calendar weeks. The publication upon any
day of such weeks shall be sufficient publication for that week, but at least five days shall
elapse between each publication. At least the number of weeks specified in "successive
weeks" shall elapse between the first publication and the day for the happening of the
event for which the publication is made. new text begin Where notice is published using an electronic
format, the term "successive weeks" must be construed consistent with the parameters
of that format.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18.

Laws 2009, chapter 96, article 2, section 64, is amended to read:

Sec. 64. RESERVED REVENUE FOR STAFF DEVELOPMENT;
TEMPORARY SUSPENSION.

new text begin (a) new text end Notwithstanding Minnesota Statutes, section 122A.61, subdivision 1, for fiscal
years 2010 deleted text begin and 2011 deleted text end new text begin through 2014 new text end only, a school district or charter school may use revenue
reserved for staff development under Minnesota Statutes, section 122A.61, subdivision 1,
according to the requirements of general education revenue under Minnesota Statutes,
section 126C.13, subdivision 5.

new text begin (b) On June 30, 2010, a school district may permanently transfer any balance from
the reserved account for staff development to the undesignated general fund balance.
new text end