SF 2813

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education finance; modifying school facilities formulas; qualifying
additional districts for alternative facilities revenue; increasing deferred
maintenance revenue; increasing the leased facilities levy; amending Minnesota
Statutes 2006, sections 123B.59, subdivision 1; 123B.591, subdivision 2;
126C.40, subdivision 1.

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

Section 1.

Minnesota Statutes 2006, section 123B.59, subdivision 1, is amended to read:

Subdivision 1.

To qualify.

(a) An independent or special school district qualifies to
participate in the alternative facilities bonding and levy program if the district has:

(1) more than 66 students per grade;

(2) deleted text begin over 1,850,000 square feet of space and the average age of deleted text end building space deleted text begin is deleted text end deleted text begin 15
years or older or over 1,500,000 square feet and the average age of building space is 35 deleted text end new text begin
with an average age of 25 new text end years or older;

(3) insufficient funds from projected health and safety revenue and capital facilities
revenue to meet the requirements for deferred maintenance, to make accessibility
improvements, or to make fire, safety, or health repairs; and

(4) a ten-year facility plan approved by the commissioner according to subdivision 2.

(b) An independent or special school district not eligible to participate in the
alternative facilities bonding and levy program under paragraph (a) qualifies for limited
participation in the program if the district has:

(1) one or more health and safety projects with an estimated cost of $500,000 or
more per site that would qualify for health and safety revenue except for the project size
limitation in section 123B.57, subdivision 1, paragraph (b); and

(2) insufficient funds from capital facilities revenue to fund those projects.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010.
new text end

Sec. 2.

Minnesota Statutes 2006, section 123B.591, subdivision 2, is amended to read:

Subd. 2.

Deferred maintenance revenue.

The deferred maintenance revenue for an
eligible school district equals the product of deleted text begin $60 deleted text end new text begin $100 new text end times the adjusted marginal cost
pupil units for the school year times the lesser of one or the ratio of the district's average
age of building space to 35 years.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010.
new text end

Sec. 3.

Minnesota Statutes 2006, section 126C.40, subdivision 1, is amended to read:

Subdivision 1.

To lease building or land.

(a) When an independent or a special
school district or a group of independent or special school districts finds it economically
advantageous to rent or lease a building or land for any instructional purposes or for
school storage or furniture repair, and it determines that the operating capital revenue
authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may
apply to the commissioner for permission to make an additional capital expenditure levy
for this purpose. An application for permission to levy under this subdivision must contain
financial justification for the proposed levy, the terms and conditions of the proposed
lease, and a description of the space to be leased and its proposed use.

(b) The criteria for approval of applications to levy under this subdivision must
include: the reasonableness of the price, the appropriateness of the space to the proposed
activity, the feasibility of transporting pupils to the leased building or land, conformity
of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
the proposed lease to the space needs and the financial condition of the district. The
commissioner must not authorize a levy under this subdivision in an amount greater than
the cost to the district of renting or leasing a building or land for approved purposes.
The proceeds of this levy must not be used for custodial or other maintenance services.
A district may not levy under this subdivision for the purpose of leasing or renting a
district-owned building or site to itself.

(c) For agreements finalized after July 1, 1997, a district may not levy under this
subdivision for the purpose of leasing: (1) a newly constructed building used primarily
for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
building addition or additions used primarily for regular kindergarten, elementary, or
secondary instruction that contains more than 20 percent of the square footage of the
previously existing building.

(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
purpose of leasing or renting a district-owned building or site to itself only if the amount
is needed by the district to make payments required by a lease purchase agreement,
installment purchase agreement, or other deferred payments agreement authorized by law,
and the levy meets the requirements of paragraph (c). A levy authorized for a district by
the commissioner under this paragraph may be in the amount needed by the district to
make payments required by a lease purchase agreement, installment purchase agreement,
or other deferred payments agreement authorized by law, provided that any agreement
include a provision giving the school districts the right to terminate the agreement
annually without penalty.

(e) The total levy under this subdivision for a district for any year must not exceed
deleted text begin $100 deleted text end new text begin $150 new text end times the resident pupil units for the fiscal year to which the levy is attributable.

(f) For agreements for which a review and comment have been submitted to the
Department of Education after April 1, 1998, the term "instructional purpose" as used in
this subdivision excludes expenditures on stadiums.

(g) The commissioner of education may authorize a school district to exceed the
limit in paragraph (e) if the school district petitions the commissioner for approval. The
commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
for not more than five years if the district meets the following criteria:

(1) the school district has been experiencing pupil enrollment growth in the
preceding five years;

(2) the purpose of the increased levy is in the long-term public interest;

(3) the purpose of the increased levy promotes colocation of government services;
and

(4) the purpose of the increased levy is in the long-term interest of the district by
avoiding over construction of school facilities.

(h) A school district that is a member of an intermediate school district may include
in its authority under this section the costs associated with leases of administrative and
classroom space for intermediate school district programs. This authority must not
exceed deleted text begin $25 deleted text end new text begin $50 new text end times the adjusted marginal cost pupil units of the member districts. This
authority is in addition to any other authority authorized under this section.

(i) In addition to the allowable capital levies in paragraph (a), a district that is a
member of the "Technology and Information Education Systems" data processing joint
board, that finds it economically advantageous to enter into a lease purchase agreement for
a building for a group of school districts or special school districts for staff development
purposes, may levy for its portion of lease costs attributed to the district within the total
levy limit in paragraph (e).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010.
new text end