SF 3405

as introduced - 86th Legislature (2009 - 2010) Posted on 05/03/2010 08:02pm

A bill for an act
relating to taxation; increasing revenue for certain education finance and early
education programs; amending Minnesota Statutes 2008, sections 124D.135,
subdivision 1; 124D.4531, subdivision 1; 126C.40, subdivision 1; Minnesota
Statutes 2009 Supplement, sections 124D.135, subdivision 3; 126C.41,
subdivision 2; 126C.44.

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

Section 1.

Minnesota Statutes 2008, section 124D.135, subdivision 1, is amended to
read:

Subdivision 1.

Revenue.

The revenue for early childhood family education
programs for a school district equals deleted text begin $112 for fiscal year 2007 and deleted text end $120 for fiscal deleted text begin year
2008 deleted text end new text begin years 2010 and 2011 and $134 for fiscal year 2012 new text end and later, times the greater of:

(1) 150; or

(2) the number of people under five years of age residing in the district on October 1
of the previous school year.

Sec. 2.

Minnesota Statutes 2009 Supplement, section 124D.135, subdivision 3, is
amended to read:

Subd. 3.

Early childhood family education levy.

(a) By September 30 of each
year, the commissioner shall establish a tax rate for early childhood family education
revenue that raises $22,135,000 in deleted text begin each deleted text end fiscal deleted text begin year deleted text end new text begin years 2010 and 2011 new text end . If the amount
of the early childhood family education levy would exceed the early childhood family
education revenue, the early childhood family education levy must equal the early
childhood family education revenue. A district may not certify an early childhood family
education levy unless it has met the annual program data reporting requirements under
section 124D.13, subdivision 13.

(b) Notwithstanding paragraph (a), for fiscal year deleted text begin 2009 deleted text end new text begin 2012 new text end only, the commissioner
shall establish a tax rate for early education revenue that raises deleted text begin $13,565,000 deleted text end new text begin $27,376,000 new text end .

new text begin (c) Notwithstanding paragraph (a), for fiscal years 2013 and later, the commissioner
shall establish a tax rate for early education revenue that raises $27,427,000.
new text end

Sec. 3.

Minnesota Statutes 2008, section 124D.4531, subdivision 1, is amended to read:

Subdivision 1.

Career and technical levy.

(a) A district with a career and technical
program approved under this section for the fiscal year in which the levy is certified may
levy an amount equal to the deleted text begin lesser deleted text end new text begin greater new text end of:

(1) $80 times the district's average daily membership in grades 10 through 12 for the
fiscal year in which the levy is certified; or

(2) 25 percent of approved expenditures in the fiscal year in which the levy is
certified for the following:

(i) salaries paid to essential, licensed personnel providing direct instructional
services to students in that fiscal year for services rendered in the district's approved
career and technical education programs;

(ii) contracted services provided by a public or private agency other than a Minnesota
school district or cooperative center under subdivision 7;

(iii) necessary travel between instructional sites by licensed career and technical
education personnel;

(iv) necessary travel by licensed career and technical education personnel for
vocational student organization activities held within the state for instructional purposes;

(v) curriculum development activities that are part of a five-year plan for
improvement based on program assessment;

(vi) necessary travel by licensed career and technical education personnel for
noncollegiate credit-bearing professional development; and

(vii) specialized vocational instructional supplies.

(b) Up to ten percent of a district's career and technical levy may be spent on
equipment purchases. Districts using the career and technical levy for equipment
purchases must report to the department on the improved learning opportunities for
students that result from the investment in equipment.

(c) The district must recognize the full amount of this levy as revenue for the fiscal
year in which it is certified.

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. 4.

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 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 The total levy authority under
this paragraph shall not exceed $632,000.
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. 5.

Minnesota Statutes 2009 Supplement, section 126C.41, subdivision 2, is
amended to read:

Subd. 2.

Retired employee health benefits.

(a) A district may levy an amount up
to the amount the district is required by the collective bargaining agreement in effect
on March 30, 1992, to pay for health insurance or unreimbursed medical expenses for
licensed and nonlicensed employees who have terminated services in the employing
district and withdrawn from active teaching service or other active service, as applicable,
before July 1, 1992, and to pay for health insurance or unreimbursed medical expenses
for licensed and nonlicensed employees who have terminated services in the employing
district and withdrawn from active teaching service or other active service, as applicable
before July 1, 1998, only if a sunset clause is in effect for the current collective bargaining
agreement. The total amount of the levy each year may not exceed $600,000.

(b) In addition to the levy authority granted under paragraph (a), a school district
may levy for other postemployment benefits expenses new text begin actually paid during the previous
fiscal year new text end . For purposes of this subdivision, "postemployment benefits" means benefits
giving rise to a liability under Statement No. 45 of the Government Accounting Standards
Board. A district seeking levy authority under this subdivision must:

(1) create or have created an actuarial liability to pay postemployment benefits to
employees or officers after their termination of service;

(2) have a sunset clause in effect for the current collective bargaining agreement as
required by paragraph (a); and

(3) apply for the authority in the form and manner required by the commissioner
of education.

If the total levy authority requested under this paragraph exceeds the amount established
in paragraph (c), the commissioner must proportionately reduce each district's maximum
levy authority under this subdivision. new text begin The commissioner may subsequently adjust each
district's levy authority under this subdivision so long as the total levy authority does not
exceed the maximum levy authority for that year.
new text end

(c) The maximum levy authority under paragraph (b) must not exceed the following
amounts:

(1) $9,242,000 for taxes payable in 2010;

(2) $29,863,000 for taxes payable in 2011; and

(3) for taxes payable in 2012 and later, the maximum levy authority must not exceed
the sum of the previous year's authority and $14,000,000.

Sec. 6.

Minnesota Statutes 2009 Supplement, section 126C.44, is amended to read:

126C.44 SAFE SCHOOLS LEVY.

(a) 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 deleted text begin $30 deleted text end new text begin $40 new text end multiplied by the district's adjusted
marginal cost pupil units for the school year. The proceeds of the levy 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; or (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. For expenditures
under 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.

(b) 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 $10 times the adjusted marginal cost 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.

(c) A school district must set aside at least $3 per adjusted marginal cost pupil unit
of the safe schools levy proceeds for the purposes authorized under paragraph (a), clause
(6). The district must annually certify either that: (1) its total spending new text begin from revenue
generated under this subdivision spent new text end on services provided by the employees listed in
paragraph (a), clause (6), is not less than the sum of its expenditures for these purposes,
excluding amounts spent under this section, in the previous year plus the amount spent
under this section; or (2) that the district's full-time equivalent number of employees listed
in paragraph (a), clause (6) new text begin , funded by revenue generated under this subdivision new text end , is not
less than the number for the previous year.