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Minnesota Legislature

Office of the Revisor of Statutes

SF 32

as introduced - 91st Legislature (2019 - 2020) Posted on 01/10/2019 03:49pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to education finance; authorizing school districts to use long-term facilities
maintenance revenue programs for physical modifications enhancing school facility
safety; modifying the calculation of long-term facilities maintenance revenue;
appropriating money; amending Minnesota Statutes 2018, section 123B.595,
subdivisions 1, 4, 10, 11, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2018, section 123B.595, subdivision 1, is amended to read:


Subdivision 1.

Long-term facilities maintenance revenue.

(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.

(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.

(c) For fiscal year 2019 and deleted text beginlaterdeleted text endnew text begin 2020 onlynew text end, long-term facilities maintenance revenue
equals the greater of (1) the sum of (i) $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, 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.

(d) Notwithstanding paragraphs (a), (b), and (c), 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 (e) For fiscal year 2021 and later, long-term facilities maintenance revenue equals an
amount approved by the board to finance the district's facilities plan under subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 2.

Minnesota Statutes 2018, 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 taxes payable in 2020.
new text end

Sec. 3.

Minnesota Statutes 2018, 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, public announcement systems,
emergency communications devices, and equipment and facility modifications related to
violence prevention and facility security.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2020.
new text end

Sec. 4.

Minnesota Statutes 2018, 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;

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

deleted text begin (4)deleted text endnew text begin (5)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
schoolnew text begin, including school safety facility enhancementsnew text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2020.
new text end

Sec. 5.

Minnesota Statutes 2018, section 123B.595, subdivision 11, is amended to read:


Subd. 11.

Restrictions on long-term facilities maintenance revenue.

Notwithstanding
subdivision 10, new text beginfor projects other than school safety facility enhancements, new text endlong-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;

(3) for energy-efficiency projects under section 123B.65, for a building or property or
part of a building or property used for postsecondary instruction or administration, or for a
purpose unrelated to elementary and secondary education; or

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2020.
new text end