SF 3270

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/22/2022 08:21am

A bill for an act
relating to education finance; modifying the calculation of long-term facilities
maintenance revenue; amending the allowed uses of long-term facilities
maintenance revenue; modifying the calculation of safe schools revenue; amending
the allowed uses of safe schools revenue; appropriating money; amending
Minnesota Statutes 2020, sections 123B.595, subdivisions 1, 4, 7, 8, 10, 11, by
adding a subdivision; 126C.44; Laws 2021, First Special Session chapter 13, article
7, section 2, subdivision 3.

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

Section 1.

Minnesota Statutes 2020, section 123B.595, subdivision 1, is amended to read:

Subdivision 1.

Long-term facilities maintenance revenue.

deleted text begin (a) For fiscal year 2017
only, long-term facilities maintenance revenue equals the greater of (1) the sum of (i) $193
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, plus the cost approved by the commissioner for indoor
air quality, fire alarm and suppression, and asbestos abatement projects under section
123B.57, subdivision 6, with an estimated cost of $100,000 or more per site, plus (ii) for a
school district with an approved voluntary prekindergarten program under section 124D.151,
the cost approved by the commissioner for remodeling existing instructional space to
accommodate prekindergarten instruction, or (2) the sum of (i) the amount the district would
have qualified for under Minnesota Statutes 2014, section 123B.57, Minnesota Statutes
2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591, and (ii) for a school
district with an approved voluntary prekindergarten program under section 124D.151, the
cost approved by the commissioner for remodeling existing instructional space to
accommodate prekindergarten instruction.
deleted text end

deleted text begin (b) For fiscal year 2018 only, long-term facilities maintenance revenue equals the greater
of (1) the sum of (i) $292 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, plus (ii) the cost approved by the
commissioner for indoor air quality, fire alarm and suppression, and asbestos abatement
projects under section 123B.57, subdivision 6, with an estimated cost of $100,000 or more
per site, plus (iii) for a school district with an approved voluntary prekindergarten program
under section 124D.151, the cost approved by the commissioner for remodeling existing
instructional space to accommodate prekindergarten instruction, or (2) the sum of (i) the
amount the district would have qualified for under Minnesota Statutes 2014, section 123B.57,
Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591,
and (ii) for a school district with an approved voluntary prekindergarten program under
section 124D.151, the cost approved by the commissioner for remodeling existing
instructional space to accommodate prekindergarten instruction.
deleted text end

deleted text begin (c) For fiscal year 2019 and later, deleted text end new text begin (a) new text end Long-term facilities maintenance revenue equals
the greater of (1) the sum of (i) deleted text begin $380 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 deleted text end new text begin the cost approved by the
commissioner for the facilities plan under subdivision 4 new text end , plus (ii) the cost approved by the
commissioner for indoor air quality, fire alarm and suppression, and asbestos abatement
projects under section 123B.57, subdivision 6, with an estimated cost of $100,000 or more
per site, plus (iii) for a school district with an approved voluntary prekindergarten program
under section 124D.151, the cost approved by the commissioner for remodeling existing
instructional space to accommodate prekindergarten instruction, or (2) the sum of (i) the
amount the district would have qualified for under Minnesota Statutes 2014, section 123B.57,
Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591,
and (ii) for a school district with an approved voluntary prekindergarten program under
section 124D.151, the cost approved by the commissioner for remodeling existing
instructional space to accommodate prekindergarten instruction.

deleted text begin (d) deleted text end new text begin (b) new text end Notwithstanding deleted text begin paragraphs deleted text end new text begin paragraph new text end (a), deleted text begin (b), and (c), deleted text end a school district that
qualified for eligibility under Minnesota Statutes 2014, section 123B.59, subdivision 1,
paragraph (a), for fiscal year 2010 remains eligible for funding under this section as a district
that would have qualified for eligibility under Minnesota Statutes 2014, section 123B.59,
subdivision 1, paragraph (a), for fiscal year 2017 and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2023 and later.
new text end

Sec. 2.

Minnesota Statutes 2020, section 123B.595, subdivision 4, is amended to read:

Subd. 4.

Facilities plans.

(a) To qualify for revenue under this section, a school district
or intermediate district, not including a charter school, 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
and remediation of lead hazards. new text begin The plan may include provisions for enhancing school
safety through physical modifications to school facilities as described in subdivision 4a.
new text end

(b) The district must annually update the plan, submit the plan to the commissioner for
approval by July 31, and indicate whether the district will issue bonds to finance the plan
or levy for the costs.

(c) For school districts issuing bonds to finance the plan, the plan must include a debt
service schedule demonstrating that the debt service revenue required to pay the principal
and interest on the bonds each year will not exceed the projected long-term facilities revenue
for that year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2023 and later.
new text end

Sec. 3.

Minnesota Statutes 2020, section 123B.595, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin School safety facility enhancements. new text end

new text begin A school district may include in its
facilities plan a school safety facilities plan. School safety projects may include remodeling
and new construction for school security enhancements; equipment and facility modifications
related to emergency communication devices, violence prevention, and facility security;
and purchasing, installing, and maintaining devices that detect vapor. An authorized project
may be included in the plan until the project is complete.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2023 and later.
new text end

Sec. 4.

Minnesota Statutes 2020, section 123B.595, subdivision 7, is amended to read:

Subd. 7.

Long-term facilities maintenance equalization revenue.

deleted text begin (a) For fiscal year
2017 only, a district's long-term facilities maintenance equalization revenue equals the lesser
of (1) $193 times the adjusted pupil units or (2) the district's revenue under subdivision 1.
deleted text end

deleted text begin (b) For fiscal year 2018 only, a district's long-term facilities maintenance equalization
revenue equals the lesser of (1) $292 times the adjusted pupil units or (2) the district's
revenue under subdivision 1.
deleted text end

deleted text begin (c) For fiscal year 2019 and later, deleted text end new text begin (a) new text end A district's long-term facilities maintenance
equalization revenue equals the lesser of (1) deleted text begin $380 deleted text end new text begin $....... new text end times the adjusted pupil units or
(2) the district's revenue under subdivision 1.

deleted text begin (d) deleted text end new text begin (b) new text end Notwithstanding deleted text begin paragraphs deleted text end new text begin paragraph new text end (a) deleted text begin to (c) deleted text end , a district's long-term facilities
maintenance equalization revenue must not be less than the lesser of the district's long-term
facilities maintenance revenue or the amount of aid the district received for fiscal year 2015
under new text begin Minnesota Statutes 2014, new text end section 123B.59, subdivision 6.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2023 and later.
new text end

Sec. 5.

Minnesota Statutes 2020, section 123B.595, subdivision 8, is amended to read:

Subd. 8.

Long-term facilities maintenance equalized levy.

(a) deleted text begin For fiscal year 2017
and later, deleted text end A district's long-term facilities maintenance equalized levy equals the district's
long-term facilities maintenance equalization revenue minus the greater of:

(1) the lesser of the district's long-term facilities maintenance equalization revenue or
the amount of aid the district received for fiscal year 2015 under Minnesota Statutes 2014,
section 123B.59, subdivision 6; or

(2) the district's long-term facilities maintenance equalization revenue times the greater
of (i) zero or (ii) one minus the ratio of its adjusted net tax capacity per adjusted pupil unit
in the year preceding the year the levy is certified to deleted text begin 123 deleted text end new text begin ... new text end percent of the state average
adjusted net tax capacity per adjusted pupil unit for all school districts in the year preceding
the year the levy is certified.

(b) For purposes of this subdivision, "adjusted net tax capacity" means the value described
in section 126C.01, subdivision 2, paragraph (b).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2023 and later.
new text end

Sec. 6.

Minnesota Statutes 2020, section 123B.595, subdivision 10, is amended to read:

Subd. 10.

Allowed uses for long-term facilities maintenance revenue.

(a) A district
may use revenue under this section for any of the following:

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

(2) increasing accessibility of school facilities;

(3) health and safety capital projects under section 123B.57; deleted text begin or
deleted text end

new text begin (4) school safety facility enhancements authorized under subdivision 4a;
new text end

new text begin (5) energy-efficient projects under section 123B.65, if the project is for a building or
property or part of a building or property used for elementary or secondary education,
administration, early education, or community education; or
new text end

deleted text begin (4) deleted text end new text begin (6) new text end by board resolution, to transfer money from the general fund reserve for long-term
facilities maintenance to the debt redemption fund to pay the amounts needed to meet, when
due, principal and interest on general obligation bonds issued under subdivision 5.

(b) A charter school may use revenue under this section for any purpose related to the
school.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2023 and later.
new text end

Sec. 7.

Minnesota Statutes 2020, section 123B.595, subdivision 11, is amended to read:

Subd. 11.

Restrictions on long-term facilities maintenance revenue.

Notwithstanding
subdivision 10, long-term facilities maintenance revenue may not be used:

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

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

(3) for energy-efficiency projects under section 123B.65, new text begin if the project is new text end for a building
or property or part of a building or property used for postsecondary instruction or
administration deleted text begin , or for a purpose unrelated to elementary and secondary education; or deleted text end new text begin .
new text end

deleted text begin (4) for violence prevention and facility security, ergonomics, or emergency
communication devices.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2023 and later.
new text end

Sec. 8.

Minnesota Statutes 2020, section 126C.44, is amended to read:

126C.44 SAFE SCHOOLS deleted text begin LEVY deleted text end new text begin REVENUE new text end .

new text begin Subdivision 1. new text end

new text begin Safe schools revenue. new text end

(a) deleted text begin Each district may make a levy on all taxable
property located within the district for the purposes specified in this section. The maximum
amount which may be levied for all costs under this section shall be equal to $36 multiplied
by deleted text end new text begin For fiscal year 2023 and later, safe schools revenue for a school district equals the greater
of $100 times new text end the district's adjusted pupil units for the school year new text begin or $100,000 new text end .

new text begin (b) For fiscal year 2023 and later, in addition to the amount in paragraph (a), safe schools
revenue for a district that is a member of a cooperative unit that serves pupils may be
increased by $41 times the district's adjusted pupil units for the school year. For purposes
of this section, "cooperative unit" has the meaning given under section 123A.24, subdivision
2. Revenue raised under this section on behalf of a cooperative unit must be transferred to
the cooperative unit to be used for safe schools activities authorized under subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Safe schools levy. new text end

new text begin (a) For fiscal year 2023 and later, a district's safe schools
levy equals $100 times the district's adjusted pupil units for the school year.
new text end

new text begin (b) For fiscal year 2023 and later, the safe schools levy for a district that is a member
of a cooperative unit according to subdivision 1, paragraph (b), may be increased by $41
times the district's adjusted pupil units for the school year.
new text end

new text begin (c) To obtain safe schools revenue for fiscal year 2023 and later, a district may levy an
amount not more than the product of its safe schools revenue for the fiscal year times the
lesser of one or the ratio of its adjusted net tax capacity per adjusted pupil unit to the safe
schools equalizing factor. For fiscal year 2023 and later, the safe schools equalizing factor
equals 387 percent of the state average net tax capacity per adjusted pupil unit for all school
districts.
new text end

new text begin Subd. 3. new text end

new text begin Safe schools aid. new text end

new text begin (a) A district's safe schools aid equals its safe schools revenue
minus its safe schools levy times the ratio of the actual amount levied to the permitted levy.
new text end

new text begin (b) A cooperative unit's safe schools aid equals its safe schools revenue minus its safe
schools levy times the ratio of the actual amount levied to the permitted levy.
new text end

new text begin Subd. 4. new text end

new text begin Uses of safe schools revenue. new text end

deleted text begin The proceeds of the levy deleted text end new text begin (a) For fiscal year 2023
and later, safe schools revenue new text end must be reserved and used for directly funding the following
purposes or for reimbursing the cities and counties who contract with the district for the
following purposes:

(1) to pay the costs incurred for the salaries, benefits, and transportation costs of peace
officers and sheriffs for liaison in services in the district's schools;

(2) to pay the costs for a drug abuse prevention program as defined in section 609.101,
subdivision 3, paragraph (e), in the elementary schools;

(3) to pay the costs for a gang resistance education training curriculum in the district's
schools;

(4) to pay the costs for security in the district's schools and on school property;

(5) to pay the costs for other crime prevention, drug abuse, student and staff safety,
voluntary opt-in suicide prevention tools, and violence prevention measures taken by the
school district;

(6) to pay costs for licensed school counselors, licensed school nurses, licensed school
social workers, licensed school psychologists, and licensed alcohol and chemical dependency
counselors to help provide early responses to problems;

(7) to pay for facility security enhancements including laminated glass, public
announcement systems, emergency communications devices, and equipment and facility
modifications related to violence prevention and facility security;

(8) to pay for costs associated with improving the school climate; deleted text begin or
deleted text end

(9) to pay costs for colocating and collaborating with mental health professionals who
are not district employees or contractors deleted text begin . deleted text end new text begin ; or
new text end

new text begin (10) to pay for the costs of enhancing cybersecurity in the district's information systems.
new text end

(b) For expenditures under paragraph (a), clause (1), the district must initially attempt
to contract for services to be provided by peace officers or sheriffs with the police department
of each city or the sheriff's department of the county within the district containing the school
receiving the services. If a local police department or a county sheriff's department does
not wish to provide the necessary services, the district may contract for these services with
any other police or sheriff's department located entirely or partially within the school district's
boundaries.

deleted text begin (c) A school district that is a member of an intermediate school district may include in
its authority under this section the costs associated with safe schools activities authorized
under paragraph (a) for intermediate school district programs. This authority must not exceed
$15 times the adjusted pupil units of the member districts. This authority is in addition to
any other authority authorized under this section. Revenue raised under this paragraph must
be transferred to the intermediate school district.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end

Sec. 9.

Laws 2021, First Special Session chapter 13, article 7, section 2, subdivision 3, is
amended to read:

Subd. 3.

Long-term facilities maintenance equalized aid.

For long-term facilities
maintenance equalized aid under Minnesota Statutes, section 123B.595, subdivision 9:

	$	108,582,000	.....	2022
	$	deleted text begin 111,077,000 deleted text end new text begin ....... new text end	.....	2023

The 2022 appropriation includes $10,660,000 for 2021 and $97,922,000 for 2022.

The 2023 appropriation includes $10,880,000 for 2022 and deleted text begin $100,197,000 deleted text end new text begin $....... new text end for
2023.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2023 and later.
new text end

Sec. 10. new text begin APPROPRIATIONS.
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 for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Safe schools aid. new text end

new text begin For safe schools aid under Minnesota Statutes, section
126C.44, subdivision 3:
new text end

	new text begin $ new text end	new text begin 0 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 75,405,000 new text end	new text begin ..... new text end	new text begin 2023 new text end

new text begin The 2023 appropriation includes $0 for 2022 and $75,405,000 for 2023.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end