SF 3063

3rd Engrossment - 86th Legislature (2009 - 2010) Posted on 05/13/2010 07:57am

A bill for an act
relating to education finance; permitting fund transfers for certain school
districts; limiting a levy; adjusting the alternative facilities bonding and levy
program to eliminate aid for certain districts; allowing Independent School
District No. 284, Wayzata, and Independent School District No. 2134, United
South Central, to participate in alternative facilities bonding and levy program in
fiscal year 2013 and later; amending Minnesota Statutes 2008, section 126C.40,
subdivision 1; Laws 1999, chapter 241, article 4, section 25.

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

Section 1.

Minnesota Statutes 2008, 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
$150 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
$43 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), new text begin for taxes payable in
2011 to 2021, new text end 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 deleted text begin purchase deleted text end agreement deleted text begin for deleted text end new text begin to finance improvements to new text end 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 The total levy authority under this paragraph shall not exceed $632,000 each year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2011 and later.
new text end

Sec. 2.

Laws 1999, chapter 241, article 4, section 25, is amended to read:

Sec. 25. ALTERNATIVE FACILITIES REVENUE PROGRAM.

Subdivision 1.

[INDEPENDENT SCHOOL DISTRICT NO. 622, NORTH ST.
PAUL-MAPLEWOOD-OAKDALE.]

Independent school district No. 622, North St.
Paul-Maplewood-Oakdale, is eligible for the alternative facilities revenue program under
Minnesota Statutes, section 123B.59, for the purposes of financing school facilities
in the district.

Subd. 2.

Stillwater.

Independent school district No. 834, Stillwater, is eligible for
the alternative facilities revenue program under Minnesota Statutes, section 123B.59, for
the purposes of financing school facilities in the district.

new text begin Subd. 3. new text end

new text begin Independent School District No. 284, Wayzata. new text end

new text begin Independent School
District No. 284, Wayzata, is eligible for the alternative facilities revenue program under
Minnesota Statutes, section 123B.59, for the purposes of financing school facilities
in the district.
new text end

new text begin Subd. 4. new text end

new text begin Independent School District No. 2134, United South Central.
new text end

new text begin Independent School District No. 2134, United South Central, is eligible for the alternative
facilities revenue program under Minnesota Statutes, section 123B.59, for the purposes of
financing school facilities in the district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2013
and later.
new text end

Sec. 3. new text begin FUND TRANSFERS.
new text end

new text begin Subdivision 1. new text end

new text begin Aitkin. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79;
123B.80; and 475.61, subdivision 4, on June 30, 2010, Independent School District No.
1, Aitkin, may permanently transfer up to $70,000 from its debt redemption fund to its
undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 2. new text end

new text begin Anoka-Hennepin. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79,
123B.80, and 475.61, subdivision 4, on June 30, 2010, Independent School District No.
11, Anoka-Hennepin, may permanently transfer up to $400,000 from its debt redemption
fund to its undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 3. new text end

new text begin Elk River. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79,
123B.80, and 475.61, subdivision 4, on June 30, 2010, Independent School District No.
728, Elk River, may permanently transfer up to $500,000 from its debt redemption fund to
its undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 4. new text end

new text begin Hayfield. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or
123B.80, on June 30, 2010, Independent School District No. 203, Hayfield, may
permanently transfer up to $75,000 from its reserved for operating capital account to its
undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 5. new text end

new text begin Kenyon-Wanamingo. new text end

new text begin Notwithstanding Minnesota Statutes, sections
123B.79, 123B.80, and 475.61, subdivision 4, on June 30, 2010, Independent School
District No. 2172, Kenyon-Wanamingo, may permanently transfer up to $55,000 from
its debt redemption fund to its undesignated general fund balance without making a levy
reduction.
new text end

new text begin Subd. 6. new text end

new text begin Madelia. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79, 123B.80,
and 475.61, subdivision 4, on June 30, 2010, Independent School District No. 837,
Madelia, may permanently transfer up to $350,000 from its debt redemption fund to its
reserved for operating capital account without making a levy reduction.
new text end

new text begin Subd. 7. new text end

new text begin Rochester. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79,
123B.80, and 475.61, subdivision 4, on June 30, 2010, Independent School District No.
535, Rochester, may permanently transfer up to $400,000 from its debt redemption fund to
its undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 8. new text end

new text begin St. Louis Park. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79,
123B.80, and 475.61, subdivision 4, on June 30, 2010, Independent School District
No. 283, St. Louis Park, may permanently transfer up to $225,000 from its reserved
for operating capital account to its undesignated general fund balance without making
a levy reduction. Any funds transferred under this subdivision must be used to pay for
the costs directly associated with closing the Cedar Manor Elementary School, including
moving and storage costs.
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