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SF 886

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:17am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to education finance; clarifying the health and safety revenue program;
amending Minnesota Statutes 2008, section 123B.57.

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

Section 1.

Minnesota Statutes 2008, section 123B.57, is amended to read:


123B.57 deleted text begin CAPITAL EXPENDITURE;deleted text end HEALTH AND SAFETY.

Subdivision 1.

Health and safety deleted text begin programdeleted text end new text begin budgetnew text end .

(a) To receive health and safety
revenue for any fiscal year a district must submit to the commissioner an application for
aid and levy by the date determined by the commissioner. deleted text begin The application may be for
hazardous substance removal, fire and life safety code repairs, labor and industry regulated
facility and equipment violations, and health, safety, and environmental management,
including indoor air quality management.
deleted text end The application must include a health and
safety deleted text begin programdeleted text end new text begin budgetnew text end adopted by the school district board. The deleted text begin programdeleted text end new text begin budget new text end must
include the estimated costdeleted text begin , per building,deleted text end of the program by fiscal yeardeleted text begin .deleted text end new text begin separated into
the following categories:
new text end

new text begin (1) physical hazards;
new text end

new text begin (2) hazardous substances;
new text end

new text begin (3) health, safety, and environmental management;
new text end

new text begin (4) asbestos;
new text end

new text begin (5) fire and life safety; and
new text end

new text begin (6) indoor air quality.
new text end

new text begin (b) The health and safety budget may include contingency amounts determined by
the local school board for each uniform financial accounting and reporting standards
(UFARS) category. The authority for a contingency amount cancels unless that amount
has been converted to a qualifying project by the date determined by the commissioner
when the contingency amount was first approved.
new text end

new text begin (c)new text end Upon approval through the adoption of a resolution by each of an intermediate
district's member school district boards and the approval of the Department of Education,
a school district may include its proportionate share of the costs of health and safety
projects for an intermediate district in its application.

deleted text begin (b)deleted text end new text begin (d)new text end Health and safety projects with an estimated cost of $500,000 or more per
sitedeleted text begin , approved after February 1, 2003,deleted text end new text begin that new text end are not eligible for health and safety revenuedeleted text begin .
Health and safety projects with an estimated cost of $500,000 or more per site, approved
after February 1, 2003,
deleted text end new text begin butnew text end that meet all other requirements for health and safety funding,
are eligible for alternative facilities bonding and levy revenue according to section
123B.59. A school board shall not separate portions of a single project into components
to qualify for health and safety revenue, and shall not combine unrelated projects into a
single project to qualify for alternative facilities bonding and levy revenue.

Subd. 2.

deleted text begin Contents ofdeleted text end new text begin Health and safety new text end program.

new text begin To qualify for health and safety
revenue,
new text end a district must deleted text begin adoptdeleted text end new text begin havenew text end a new text begin board-approved new text end health and safety deleted text begin programdeleted text end new text begin policynew text end .
The deleted text begin programdeleted text end new text begin policynew text end must include new text begin written new text end plans, where applicable, for deleted text begin hazardous substance
removal, fire and life safety code repairs, regulated facility and equipment violations, and
deleted text end new text begin
compliance with federal, state, and local
new text end health, safety, and environmental deleted text begin managementdeleted text end new text begin
regulations
new text end , including new text begin nonregulated best practices such as playground safety, ergonomics,
and
new text end indoor air quality management.

deleted text begin (a) A hazardous substance plan must contain provisions for the removal or
encapsulation of asbestos from school buildings or property, asbestos-related repairs,
cleanup and disposal of polychlorinated biphenyls found in school buildings or property,
and cleanup, removal, disposal, and repairs related to storing heating fuel or transportation
fuels such as alcohol, gasoline, fuel, oil, and special fuel, as defined in section 296A.01.
If a district has already developed a plan for the removal or encapsulation of asbestos as
required by the federal Asbestos Hazard Emergency Response Act of 1986, the district
may use a summary of that plan, which includes a description and schedule of response
actions, for purposes of this section. The plan must also contain provisions to make
modifications to existing facilities and equipment necessary to limit personal exposure
to hazardous substances, as regulated by the federal Occupational Safety and Health
Administration under Code of Federal Regulations, title 29, part 1910, subpart Z; or is
determined by the commissioner to present a significant risk to district staff or student
health and safety as a result of foreseeable use, handling, accidental spill, exposure, or
contamination.
deleted text end

deleted text begin (b) A fire and life safety plan must contain a description of the current fire and life
safety code violations, a plan for the removal or repair of the fire and life safety hazard,
and a description of safety preparation and awareness procedures to be followed until the
hazard is fully corrected.
deleted text end

deleted text begin (c) A facilities and equipment violation plan must contain provisions to correct
health and safety hazards as provided in Department of Labor and Industry standards
pursuant to section 182.655.
deleted text end

deleted text begin (d) A health, safety, and environmental management plan must contain a description
of training, record keeping, hazard assessment, and program management as defined
in section 123B.56.
deleted text end

deleted text begin (e) A plan to test for and mitigate radon produced hazards.
deleted text end

deleted text begin (f) A plan to monitor and improve indoor air quality.
deleted text end

Subd. 3.

Health and safety revenue.

A district's health and safety revenue
for a fiscal year equals the district's alternative facilities levy under section 123B.59,
subdivision 5, paragraph (b), plus the greater of zero or:

(1) the sum of (a) the total approved cost of the district's hazardous substance
plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's
health and safety program for fiscal year 1990 through the fiscal year to which the levy
is attributable, excluding expenditures funded with bonds issued under section 123B.59
or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section
123B.61; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or
6; and other federal, state, or local revenues, minus

(2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years
1985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the
district's health and safety revenue under this subdivision, for years before the fiscal year
to which the levy is attributable.

Subd. 4.

Health and safety levy.

To receive health and safety revenue, a district
may levy an amount equal to the district's health and safety revenue as defined in
subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by
dividing the adjusted net tax capacity of the district for the year preceding the year the
levy is certified by the adjusted marginal cost pupil units in the district for the school year
to which the levy is attributable, to $2,935.

Subd. 5.

Health and safety aid.

A district's health and safety aid is the difference
between its health and safety revenue and its health and safety levy. If a district does not
levy the entire amount permitted, health and safety aid must be reduced in proportion to
the actual amount levied. Health and safety aid may not be reduced as a result of reducing
a district's health and safety levy according to section 123B.79.

Subd. 6.

Uses of health and safety revenue.

(a) Health and safety revenue may
be used deleted text begin onlydeleted text end for deleted text begin approved expenditures necessary to correct fire and life safety hazards,
or for the removal or encapsulation of asbestos from school buildings or property
owned or being acquired by the district, asbestos-related repairs, cleanup and disposal
of polychlorinated biphenyls found in school buildings or property owned or being
acquired by the district, or the cleanup, removal, disposal, and repairs related to storing
heating fuel or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel,
as defined in section 296A.01, Minnesota occupational safety and health administration
regulated facility and equipment hazards, indoor air quality mold abatement, upgrades
or replacement of mechanical ventilation systems to meet American Society of Heating,
Refrigerating and Air Conditioning Engineers standards and State Mechanical Code,
Department of Health Food Code and swimming pool hazards excluding depth correction,
and health, safety, and environmental management. Testing and calibration activities are
permitted for existing mechanical ventilation systems at intervals no less than every five
years. Health and safety revenue must not be used to finance a lease purchase agreement,
installment purchase agreement, or other deferred payments agreement. Health and safety
revenue must not be used for the construction of new facilities or the purchase of portable
classrooms, for interest or other financing expenses, or for energy efficiency projects
under section 123B.65. The revenue may not be used 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
deleted text end new text begin any allowable expenditures
approved by the school board
new text end .

deleted text begin (b) Notwithstanding paragraph (a), health and safety revenue must not be used for
replacement of building materials or facilities including roof, walls, windows, internal
fixtures and flooring, nonhealth and safety costs associated with demolition of facilities,
structural repair or replacement of facilities due to unsafe conditions, violence prevention
and facility security, ergonomics, building and heating, ventilating and air conditioning
supplies, maintenance, and cleaning activities. All assessments, investigations,
inventories, and support equipment not leading to the engineering or construction of a
project shall be included in the health, safety, and environmental management costs in
subdivision 8, paragraph (a).
deleted text end

new text begin (b) A school board may proceed with an allowable health and safety project whether
or not a written order to correct the violation has been received from the local authority
responsible for enforcing the health and safety standard.
new text end

new text begin (c) Notwithstanding paragraph (b), a school board must not proceed with any fire
or life safety repair with a cost of more than $10,000 per site without first receiving
approval from the fire marshal.
new text end

new text begin Subd. 6a. new text end

new text begin Prohibited uses. new text end

new text begin Health and safety revenue may not be spent on the
following:
new text end

new text begin (1) to finance a lease purchase agreement, installment purchase agreement, or other
deferred payments agreement;
new text end

new text begin (2) for interest payments or other financing expenses;
new text end

new text begin (3) for any work performed under an energy performance contract or financed
through facility or equipment bond proceeds;
new text end

new text begin (4) for the construction of new facilities;
new text end

new text begin (5) for the purchase of portable classrooms;
new text end

new text begin (6) for energy efficiency projects under section 123B.65;
new text end

new text begin (7) for a building or property, or part of a building or property, used for postsecondary
instruction, postsecondary administration, or other purpose unrelated to K-12 education;
new text end

new text begin (8) for repair or replacement of roofs, exterior walls, or windows;
new text end

new text begin (9) for demolition costs unrelated to health and safety purposes;
new text end

new text begin (10) for structural repair or replacement of facilities due to unsafe conditions;
new text end

new text begin (11) for violence prevention or facility security programs;
new text end

new text begin (12) for Department of Health licenses or certification required for kitchen staff;
new text end

new text begin (13) for air conditioning costs; or
new text end

new text begin (14) for personal protective equipment used in extracurricular activities.
new text end

Subd. 7.

Proration.

In the event that the health and safety aid available for any year
is prorated, a district having its aid prorated may levy an additional amount equal to the
amount not paid by the state due to proration.

Subd. 8.

Health, safety, and environmental management cost.

deleted text begin (a)deleted text end A district's cost
for health, safety, and environmental management is limited to the lesser of:

(1) actual cost to implement their plan; or

(2) an amount determined by the commissioner, based on enrollment, building
age, and size.

deleted text begin (b) The department may contract with regional service organizations, private
contractors, Minnesota Safety Council, or state agencies to provide management
assistance to school districts for health and safety capital projects. Management assistance
is the development of written programs for the identification, recognition and control of
hazards, and prioritization and scheduling of district health and safety capital projects.
The department shall not exclude private contractors from the opportunity to provide any
health and safety services to school districts.
deleted text end

deleted text begin (c) Notwithstanding paragraph (b), the department may approve revenue, up to
the limit defined in paragraph (a) for districts having an approved health, safety, and
environmental management plan that uses district staff to accomplish coordination and
provided services.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2011
and later.
new text end