SF 10

3rd Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:10am

A bill for an act
relating to education finance; requiring school districts to use shared services
and make purchases through the cooperative purchasing venture; requiring the
Department of Education to hire a consultant to work with districts to share
services; appropriating money; proposing coding for new law in Minnesota
Statutes, chapter 123B.

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

Section 1.

new text begin [123B.835] COOPERATIVE PURCHASING.
new text end

new text begin Subdivision 1. new text end

new text begin Purchasing requirement. new text end

new text begin (a) For fiscal years 2010, 2011, and 2012,
a school district or charter school is required to purchase goods and services, when price
competitive, from a regional service cooperative or a regional management information
center, or state contracts available through the cooperative purchasing venture under
section 16C.10, subdivision 4, and operated under the authority of the commissioner of
administration or a joint powers agreement or purchase of services agreement between
governmental units. The commissioner of administration will oversee the shared services
purchasing requirement under this subdivision.
new text end

new text begin (b) Any state contract or joint purchasing arrangement that would include school
districts and charter schools shall be reported to the commissioners of education and
administration. These state contracts or joint purchasing arrangements shall be published
on the Department of Administration's Web site, which the department shall maintain
and update as necessary. The Department of Education's Web site shall be linked to the
Department of Administration's Web site. For each state contract or joint purchasing
arrangement listed, the Web site shall list the goods or services covered, the duration
of the contract or arrangement, the governmental units covered by the contract or
arrangement and an explanation of how an eligible governmental unit may take advantage
of and participate in that state contract or joint purchasing arrangement. Each time a
new state contract or joint purchasing arrangement is added to the list, the Department
of Administration shall e-mail school districts and charter schools to inform them of
the availability of the new contract or arrangement. This requirement does not apply to
custodial, food, or transportation services.
new text end

new text begin Subd. 2. new text end

new text begin Exemption. new text end

new text begin Notwithstanding subdivision 1, a school district or charter
school is not required to purchase a good or business service according to subdivision 1
if the school district or charter school can document that:
new text end

new text begin (1) a lower price for comparable goods or business services is available from
another vendor;
new text end

new text begin (2) the available goods or business services fail to meet acceptable quality standards;
new text end

new text begin (3) the proximity of another vendor materially affects the delivery of a particular
good or business service;
new text end

new text begin (4) an urgent need justifies a purchase from another vendor; or
new text end

new text begin (5) a reasonable regional need justifies a purchase from another vendor.
new text end

new text begin If a school district or charter school purchases a particular good or business service
according to this subdivision, the district or charter school rationale must be documented.
The school district or charter school may use section 471.345 to satisfy this requirement.
A statement or notation on the invoice fulfills this requirement.
new text end

Sec. 2. new text begin SHARED SERVICES CONSULTATION SERVICES.
new text end

new text begin The commissioner of education shall enter into a three-year contract with a
consultant to study specific services or activities across school districts and charter schools
to make recommendations about combining services and activities in order to promote
improved service delivery, efficiency, and economy of operation. The commissioner of
education shall require the consultant to develop an implementation plan for all school
districts to participate in shared services. The consultant must work cooperatively with
school districts, charter schools, and their employees to develop and implement this plan.
The department must contract with a consultant that agrees to receive payment as a
percentage of shared services savings as measured under section 3, subdivision 2, of this
act. This percentage must not exceed five percent of the savings computed according to
section 3, subdivision 2, of this act in fiscal years 2010, 2011, and 2012.
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. 3. new text begin SHARED SERVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Shared services arrangement. new text end

new text begin School districts, charter schools,
and their employees must work with a shared services consultant and may work with an
intermediate school district, a regional service cooperative, or a regional management
information center to create and implement a plan that maximizes the benefits of shared
services.
new text end

new text begin Subd. 2. new text end

new text begin Savings measurement. new text end

new text begin School districts, charter schools, and their
employees must work with a shared services consultant to develop a method for measuring
school district or charter school savings as a result of utilizing shared services under
this section. This method must calculate savings for each individual district or charter
school. The savings must be allocated to classroom education in each school district or
charter school. Each school district and charter school must annually report the savings
calculated under this section to the commissioner of education by January 15, 2010;
January 15, 2011; and January 15, 2012.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The commissioner of education must annually report by February
15, 2010; February 15, 2011; and February 15, 2012, to the education finance committees
of the legislature on the savings that shared services generates for the state's school
districts and charter schools.
new text end

Sec. 4. new text begin SHARED SERVICES DEDUCTION.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 126C.13, subdivision 4, for fiscal
years 2010 , 2011, and 2012 only, a school district or charter school's general education aid
must equal the amount computed under Minnesota Statutes, section 126C.13, subdivision
4, minus five percent of the savings computed under section 3, subdivision 2, of this act.
new text end

new text begin (b) Notwithstanding paragraph (a), the deduction under this section shall be equal to
the contracted percentage under section 2 between the Department of Education and the
consultant. The department must reduce the deduction under this section if the department
and the consultant agree to a contract under section 2, in which the consultant is paid as a
percentage of savings that is less than five percent. The statewide total deduction for this
section must not exceed $2,500,000 each year for fiscal years 2010 and 2011.
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. 5. new text begin SAVINGS ALLOCATION.
new text end

new text begin Notwithstanding section 3 of this act, in fiscal years 2010, 2011, and 2012 only,
savings computed according to section 3, subdivision 2, of this act minus the contracted
percentage paid to the shared services consultant under section 2 must be allocated to
classroom education in each school district or charter school.
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. 6. new text begin APPROPRIATION; SHARED SERVICES CONSULTANT.
new text end

new text begin For fiscal years 2010 and 2011, the amount deducted from general education aid
under section 4 is appropriated to the Department of Education for the costs of the contract
associated with shared services consultation under section 2.
new text end