Minnesota Legislature
SF 489
as introduced - 89th Legislature (2015 - 2016) Posted on 02/03/2015 08:34am
1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 3.1 3.2 3.3 3.4 3.5
3.6 3.7
3.8 3.9 3.10
A bill for an act
relating to education finance; providing enhanced debt service equalization
for school districts in certain unique situations; amending Minnesota Statutes
2014, section 123B.535; repealing Minnesota Statutes 2014, sections 123A.44;
123A.441; 123A.442; 123A.443.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, 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 enhancednew 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 new text begin at least one of new text end the following conditions:
(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;
deleted text begin (2)deleted text end the natural disaster caused $500,000 or more in damages to school district
buildings; and
deleted text begin (3)deleted text end the repair and replacement costs are not covered by insurance payments or
Federal Emergency Management Agency paymentsnew text begin ;
new text end
new text begin
(2) the district has consolidated after June 30, 2014, and its consolidation plan under
section 123A.48 includes building or remodeling school facilities; or
new text end
new text begin (3) the district has a debt service tax rate that, after equalization under section
123B.53, exceeds 30 percent of its total adjusted net tax capacitynew text end .
(b) 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.
(c) 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
deleted text begin equalizationdeleted text end 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.
new text begin (a) new text end The
new text begin enhanced new text end debt service equalization revenue of a district new text begin that qualifies under subdivision
1, paragraph (a), clause (1) or (2), new text end equals the greater of zero or the eligible debt service
revenue, minus deleted text begin the greater of zero or the difference between:
deleted text end
deleted text begin (1)deleted text end the amount raised by a levy of ten percent times the adjusted net tax capacity
of the districtdeleted text begin ; and
deleted text end
deleted text begin (2) the district's eligible debt service revenue under section 123B.53deleted text end .
new text begin
(b) The enhanced debt service equalization revenue of a district that qualifies under
subdivision 1, paragraph (a), clause (3), equals the greater of zero or the eligible debt
service revenue, minus:
new text end
new text begin
(1) the amount raised by a levy of 30 percent times the adjusted net tax capacity
of the district; and
new text end
new text begin
(2) the district's debt service aid under section 123B.53.
new text end
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 disasterdeleted 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.
new text begin Enhanced new text end debt service equalization aid must be paid according to section
127A.45, subdivision 10.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue in fiscal year 2017 and
later.
new text end
Sec. 2. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2014, sections 123A.44; 123A.441; 123A.442; and 123A.443,
new text end
new text begin
are repealed.
new text end