SF 1996

as introduced - 89th Legislature (2015 - 2016) Posted on 03/27/2015 09:13am

A bill for an act
relating to education finance; modifying certain facilities funding provisions;
creating a long-term facilities maintenance revenue program for certain
school districts and educational cooperatives; appropriating money; amending
Minnesota Statutes 2014, section 123B.57, subdivision 1; proposing coding for
new law in Minnesota Statutes, chapter 123B; repealing Minnesota Statutes
2014, section 123B.591.

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

Section 1.

Minnesota Statutes 2014, section 123B.57, subdivision 1, is amended to read:

Subdivision 1.

Health and safety revenue application.

(a) To receive health and
safety revenue for any fiscal year a district new text begin eligible under paragraph (d) new text end must submit to
the commissioner a capital expenditure health and safety revenue application by the date
determined by the commissioner. The application must include a health and safety budget
adopted and confirmed by the school district board as being consistent with the district's
health and safety policy under subdivision 2. The budget must include the estimated cost
of the program per Uniform Financial Accounting and Reporting Standards (UFARS)
finance code, by fiscal year. 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.

(b) Health and safety projects with an estimated cost of $500,000 or more per
site are not eligible for health and safety revenue. Health and safety projects with an
estimated cost of $500,000 or more per site 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.

(c) The commissioner of education shall not make eligibility for health and safety
revenue contingent on a district's compliance status, level of program development, or
training. The commissioner shall not mandate additional performance criteria such as
training, certifications, or compliance evaluations as a prerequisite for levy approval.

new text begin (d) For the 2016 fiscal year only, all school districts are eligible for health and safety
revenue under this section. For fiscal year 2017 and later, a school district is eligible for
health and safety revenue under this section only if the district qualifies for alternative
facilities revenue under section 123B.59.
new text end

Sec. 2.

new text begin [123B.595] LONG-TERM FACILITIES MAINTENANCE REVENUE.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin A school district is eligible to receive revenue under
this section if the district does not qualify for alternative facilities revenue under section
123B.59.
new text end

new text begin Subd. 2. new text end

new text begin Long-term facilities maintenance revenue. new text end

new text begin For fiscal year 2017 and
later, long-term facilities maintenance revenue equals the greater of (1) $470 times the
district's adjusted pupil units times the lesser of one or the ratio of the district's average
building age to 35 years, or (2) the sum of the amount the district would have qualified for
under Minnesota Statutes 2014, section 123B.57, and Minnesota Statutes 2014, section
123B.591, minus the amount attributable to bonds authorized under Minnesota Statutes
2014, section 123B.57, and Minnesota Statutes 2014, section 123B.591, that were retired
after January 1, 2016.
new text end

new text begin Subd. 3. new text end

new text begin Facilities plans. new text end

new text begin (a) To qualify for revenue under this section, a school
district must have a ten-year facility plan adopted by the school board and approved
by the commissioner. The plan must include provisions for implementing a health and
safety program that complies with health, safety, and environmental regulations and best
practices, including indoor air quality management.
new text end

new text begin (b) The district must annually update the plan, biennially submit a facility
maintenance plan to the commissioner, and indicate whether the district will issue bonds
to finance the plan or levy for the costs.
new text end

new text begin Subd. 4. new text end

new text begin Bond authorization. new text end

new text begin (a) A school district may issue general obligation
bonds under this section to finance facilities plans approved by its board and the
commissioner. Chapter 475, except sections 475.58 and 475.59, must be complied with.
The authority to issue bonds under this section is in addition to any bonding authority
authorized by this chapter or other law. The amount of bonding authority authorized
under this section must be disregarded in calculating the bonding or net debt limits of this
chapter, or any other law other than section 475.53, subdivision 4.
new text end

new text begin (b) At least 20 days before the earliest of solicitation of bids, the issuance of bonds,
or the final certification of levies under subdivision 5, the district must publish notice
of the intended projects, the amount of the bond issue, and the total amount of district
indebtedness.
new text end

new text begin (c) The portion of revenue under this section for bonded debt must be recognized
in the debt service fund.
new text end

new text begin Subd. 5. new text end

new text begin Levy authorization. new text end

new text begin A district may levy for costs related to an approved
plan under subdivision 3 as follows:
new text end

new text begin (1) if the district has indicated to the commissioner that bonds will be issued, the
district may levy for the principal and interest payments on outstanding bonds issued
under subdivision 4 after reduction for any aid receivable under subdivision 7; or
new text end

new text begin (2) if the district has indicated to the commissioner that the plan will be funded
through levy, the district may levy according to the schedule approved in the plan after
reduction for any aid receivable under subdivision 7.
new text end

new text begin Subd. 6. new text end

new text begin Long-term facilities maintenance equalization levy. new text end

new text begin (a) A district's
long-term facilities maintenance equalization levy equals its long-term facilities
maintenance revenue times the lesser of one or the ratio of its referendum market value
per adjusted pupil unit in the year preceding the year the levy is certified to the long-term
facilities maintenance equalizing factor.
new text end

new text begin (b) A district's long-term facilities maintenance equalizing factor equals $670,000
times the greater of one or the ratio of the district's seasonal recreational factor to 0.30.
new text end

new text begin (c) A district's seasonal recreational factor equals the ratio of the market value of
property in the district classified as 4(c)12 under section 273.13 to the district's total
taxable market value under section 273.13.
new text end

new text begin Subd. 7. new text end

new text begin Long-term facilities maintenance equalization aid. new text end

new text begin A district's long-term
facilities maintenance equalization aid equals the difference between its long-term
facilities maintenance revenue and its long-term facilities maintenance equalization levy.
new text end

new text begin Subd. 8. new text end

new text begin Allowed uses for long-term facilities maintenance revenue. new text end

new text begin A district
may use revenue under this section for any of the following:
new text end

new text begin (1) deferred capital expenditures and maintenance projects necessary to prevent
further erosion of facilities;
new text end

new text begin (2) increasing accessibility of school facilities; or
new text end

new text begin (3) allowable uses of health and safety revenue under section 123B.57, subdivision 6.
new text end

new text begin Subd. 9. new text end

new text begin Restrictions on long-term facilities maintenance revenue.
new text end

new text begin Notwithstanding subdivision 8, long-term facilities maintenance revenue may not be used:
new text end

new text begin (1) for the construction of new facilities, remodeling of existing facilities, or the
purchase of portable classrooms;
new text end

new text begin (2) to finance a lease purchase agreement, installment purchase agreement, or other
deferred payments agreement;
new text end

new text begin (3) for energy efficiency projects under section 123B.65, 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; or
new text end

new text begin (4) for violence prevention and facility security, ergonomics, or public announcement
systems and emergency communication devices.
new text end

new text begin Subd. 10. new text end

new text begin Reserve account. new text end

new text begin The portion of long-term facilities maintenance
revenue not recognized under subdivision 4, paragraph (c), must be maintained in a
reserve account within the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and
later.
new text end

Sec. 3.

new text begin [123B.596] COOPERATIVE FACILITIES MAINTENANCE AID.
new text end

new text begin (a) An education district under section 123A.15, or a special education cooperative
established pursuant to sections 125A.03 to 125A.24 and 125A.65 or section 471.59, is
eligible to receive cooperative facilities maintenance aid equal to $1 per square foot of
facilities owned or leased by the education district or special education cooperative.
new text end

new text begin (b) A service cooperative under section 123A.21 is eligible to receive cooperative
facilities maintenance aid equal to the product of (1) $1 per square foot of facilities owned
or leased by the education district or special education cooperative, and (2) the percent of
the service cooperative's members that are school districts.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2017
and later.
new text end

Sec. 4. new text begin MAINTENANCE OF LEVY AUTHORITY AND TAX BASE
TRANSITION.
new text end

new text begin (a) A school district eligible for long-term maintenance revenue beginning in
fiscal year 2017 may authorize levies under Minnesota Statutes, sections 123B.57 and
123B.591, through December 31, 2015.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 123B.595, subdivision 6, the
portion of the levy attributable to the payment of bonds authorized under Minnesota
Statutes 2014, sections 123B.57 and 123B.591, shall be levied on adjusted net tax capacity
and equalized under the applicable 2014 Minnesota Statutes. At the retirement of the
bond, that amount of levy authority shall be converted from adjusted net tax capacity to
referendum market value until the district's levy authority on referendum market value
under Minnesota Statutes, section 123B.595, reaches $470 per adjusted pupil unit.
new text end

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 123B.591, new text end new text begin is repealed for fiscal year 2017 and later.
new text end