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SF 2201

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/23/2021 08:10am

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; expanding eligibility for enhanced debt service
equalization aid; authorizing a grant for a joint library facility; appropriating money;
amending Minnesota Statutes 2020, section 123B.535.

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

Section 1.

Minnesota Statutes 2020, section 123B.535, is amended to read:


123B.535 deleted text begin NATURAL DISASTERdeleted text end new text begin ENHANCEDnew text end DEBT SERVICE
EQUALIZATION.

Subdivision 1.

Definitions.

(a) For purposes of this section, the eligible deleted text begin natural disasterdeleted text end new text begin
enhanced
new text end debt service revenue of a district is defined as the amount needed to produce
between five and six percent in excess of the amount needed to meet when due the principal
and interest payments on the obligations of the district that would otherwise qualify under
section 123B.53 under deleted text begin the following conditions:deleted text end new text begin paragraph (b) or (c).
new text end

new text begin (b) A school district affected by a natural disaster qualifies if:
new text end

(1) the district was impacted by a natural disaster event or area occurring January 1,
2005, or later, as declared by the President of the United States of America, which is eligible
for Federal Emergency Management Agency payments;

(2) the natural disaster caused $500,000 or more in damages to school district buildings;
and

(3) the repair and replacement costs are not covered by insurance payments or Federal
Emergency Management Agency payments.

new text begin (c) A school district qualifies for enhanced debt service equalization if at the time of the
school district's review and comment:
new text end

new text begin (1) at least 45 percent of the pupils enrolled in the school district are eligible for free or
reduced-price meals;
new text end

new text begin (2) the average age of the school district's facility square footage exceeds 75 years; and
new text end

new text begin (3) the district has damage to its facilities' infrastructure resulting from mining or other
activities outside of the control of the school board.
new text end

deleted text begin (b)deleted text end new text begin (d)new text end For purposes of this section, the adjusted net tax capacity equalizing factor equals
the quotient derived by dividing the total adjusted net tax capacity of all school districts in
the state for the year before the year the levy is certified by the total number of adjusted
pupil units in the state for the year prior to the year the levy is certified.

deleted text begin (c)deleted text end new text begin (e)new text end For purposes of this section, the adjusted net tax capacity determined according
to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
generally exempted from ad valorem taxes under section 272.02, subdivision 64.

Subd. 2.

Notification.

A district eligible for deleted text begin natural disasterdeleted text end new text begin enhancednew text end debt service
equalization revenue under subdivision 1 must notify the commissioner of the amount of
its intended deleted text begin natural disasterdeleted text end new text begin enhancednew text end debt service revenue calculated under subdivision 1
for all bonds sold prior to the notification by July 1 of the calendar year the levy is certified.

Subd. 3.

deleted text begin Natural disasterdeleted text end new text begin Enhancednew text end debt service equalization revenue.

The debt
service equalization revenue of a district equals the greater of zero or the eligible debt service
revenue, minus the greater of zero or the difference between:

(1) the amount raised by a levy of ten percent times the adjusted net tax capacity of the
district; and

(2) the district's eligible debt service revenue under section 123B.53.

Subd. 4.

Equalized deleted text begin natural disasterdeleted text end new text begin enhancednew text end debt service levy.

A district's equalized
deleted text begin natural disasterdeleted text end new text begin enhancednew text end debt service levy equals the district's deleted text begin natural disasterdeleted text end new text begin enhancednew text end
debt service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for the
year before the year the levy is certified by the adjusted pupil units in the district for the
school year ending in the year prior to the year the levy is certified; to

(2) 300 percent of the statewide adjusted net tax capacity equalizing factor.

Subd. 5.

deleted text begin Natural disasterdeleted text end new text begin Enhancednew text end debt service equalization aid.

A district's deleted text begin natural
disaster
deleted text end new text begin enhancednew text end debt service equalization aid equals the difference between the district's
deleted text begin natural disasterdeleted text end new text begin enhancednew text end debt service equalization revenue and the district's equalized
deleted text begin natural disasterdeleted text end new text begin enhancednew text end debt service levy.

Subd. 6.

deleted text begin Natural disasterdeleted text end new text begin Enhancednew text end debt service equalization aid payment
schedule.

Debt service equalization aid must be paid according to section 127A.45,
subdivision 10
.

Sec. 2. new text begin APPROPRIATION; LIBRARY COLOCATION GRANT.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education in the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Colocation of library facilities. new text end

new text begin (a) For a facilities grant for Independent School
District No. 319, Nashwauk-Keewatin, for a new library facility serving as a jointly operated
public library and school library:
new text end

new text begin $
new text end
new text begin 3,000,000
new text end
new text begin .....
new text end
new text begin 2022
new text end
new text begin $
new text end
new text begin .......
new text end
new text begin .....
new text end
new text begin 2023
new text end

new text begin (b) The proposed colocated library facility must be approved by the Division of State
Library Services of the Minnesota Department of Education.
new text end

new text begin (c) This appropriation does not cancel but is available until June 30, 2024.
new text end