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HF 3308

as introduced - 86th Legislature (2009 - 2010) Posted on 03/03/2010 03:50pm

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

Bill Text Versions

Engrossments
Introduction Posted on 03/03/2010

Current Version - as introduced

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A bill for an act
relating to education finance; simplifying the capital expenditure health and
safety revenue program; amending Minnesota Statutes 2008, section 123B.57,
as amended.

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

Section 1.

Minnesota Statutes 2008, section 123B.57, as amended by Laws 2009
chapter 96, article 4, section 2, is amended to read:


123B.57 CAPITAL EXPENDITURE; HEALTH AND SAFETY.

Subdivision 1.

Health and safety deleted text beginprogramdeleted text endnew text begin levy applicationnew text end.

(a) To receive
health and safety revenue for any fiscal year a district must submit to the commissioner
deleted text begin andeleted text endnew text begin a capital expenditure health and safety revenuenew text end application deleted text beginfor aid and levydeleted text end by the
date determined by the commissioner. deleted text beginThe application may be for hazardous substance
removal, fire and life safety code repairs, labor and industry regulated facility and
equipment violations, and health, safety, and environmental management, including indoor
air quality management.
deleted text end The application must include a health and safety deleted text beginprogramdeleted text endnew text begin budgetnew text end
adopted by the school district board. The deleted text beginprogramdeleted text endnew text begin budgetnew text end must include the estimated costdeleted text begin,
per building,
deleted text end of the program new text beginper uniform financial accounting and reporting standards
(UFARS) finance code,
new text endby fiscal year. Upon approval through the adoption of a resolution
by each of an intermediate district's member school district boards and the approval of the
Department of Education, a school district may include its proportionate share of the costs
of health and safety projects for an intermediate district in its application.

(b) deleted text beginHealth and safety projects with an estimated cost of $500,000 or more per
site are not eligible for health and safety revenue.
deleted text end Health and safety projects with an
estimated cost of $500,000 or more per site that meet all other requirements for health and
safety funding, are eligible for alternative facilities bonding and levy revenue according
to section 123B.59. A school board shall not deleted text beginseparate portions of a single project into
components to qualify for health and safety revenue, and shall not
deleted text end combine unrelated
projects into a single project to qualify for alternative facilities bonding and levy revenue.

new text begin (c) The commissioner of education shall not make eligibility for health and safety
revenue contingent on a district's compliance status, level of program development, or
training. The commissioner shall not mandate additional performance criteria such as
training, certifications, inspections, or compliance evaluations as a prerequisite for levy
approval.
new text end

Subd. 2.

deleted text beginContents of programdeleted text endnew text begin Health and safety policynew text end.

new text begin(a) To qualify for health
and safety revenue,
new text enda new text beginschool new text enddistrict must adopt a health and safety deleted text beginprogramdeleted text endnew text begin policynew text end. The
deleted text begin programdeleted text endnew text begin policynew text end must include deleted text beginplans, where applicable, for hazardous substance removal,
fire and life safety code repairs, regulated facility and equipment violations, and
deleted text endnew text begin provisions
for implementing a health and safety program that complies with
new text end health, safety, and
environmental deleted text beginmanagement,deleted text endnew text begin regulations and best practicesnew text end including indoor air quality
management.new text begin In the absence of a health and safety policy, districts may submit to the
commissioner a board-approved copy of the Department of Education's Attachment 99
document.
new text end

new text begin (b) The commissioner shall provide districts with a model health and safety policy
by July 1, 2011. Once the commissioner has verified that a district's health and safety
policy meets the intent of paragraph (a), annual submission of Attachment 99 or other
health and safety program status reports is no longer required.
new text end

deleted text begin (a) A hazardous substance plan must contain provisions for the removal or
encapsulation of asbestos from school buildings or property, asbestos-related repairs,
cleanup and disposal of polychlorinated biphenyls found in school buildings or property,
and cleanup, removal, disposal, and repairs related to storing heating fuel or transportation
fuels such as alcohol, gasoline, fuel, oil, and special fuel, as defined in section 296A.01.
If a district has already developed a plan for the removal or encapsulation of asbestos as
required by the federal Asbestos Hazard Emergency Response Act of 1986, the district
may use a summary of that plan, which includes a description and schedule of response
actions, for purposes of this section. The plan must also contain provisions to make
modifications to existing facilities and equipment necessary to limit personal exposure
to hazardous substances, as regulated by the federal Occupational Safety and Health
Administration under Code of Federal Regulations, title 29, part 1910, subpart Z; or is
determined by the commissioner to present a significant risk to district staff or student
health and safety as a result of foreseeable use, handling, accidental spill, exposure, or
contamination.
deleted text end

deleted text begin (b) A fire and life safety plan must contain a description of the current fire and life
safety code violations, a plan for the removal or repair of the fire and life safety hazard,
and a description of safety preparation and awareness procedures to be followed until the
hazard is fully corrected.
deleted text end

deleted text begin (c) A facilities and equipment violation plan must contain provisions to correct
health and safety hazards as provided in Department of Labor and Industry standards
pursuant to section 182.655.
deleted text end

deleted text begin (d) A health, safety, and environmental management plan must contain a description
of training, record keeping, hazard assessment, and program management as defined
in section 123B.56.
deleted text end

deleted text begin (e) A plan to test for and mitigate radon produced hazards.
deleted text end

deleted text begin (f) A plan to monitor and improve indoor air quality.
deleted text end

Subd. 3.

Health and safety revenue.

A district's health and safety revenue
for a fiscal year equals the district's alternative facilities levy under section 123B.59,
subdivision 5, paragraph (b), plus the greater of zero or:

(1) deleted text beginthe sum of (a) the total approved cost of the district's hazardous substance
plan for fiscal years 1985 through 1989, plus (b)
deleted text end the total approved cost of the district's
health and safety program for fiscal year 1990 through the fiscal year to which the levy
is attributable, excluding expenditures funded with bonds issued under section 123B.59
or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section
123B.61; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or
6; and other federal, state, or local revenues, minus

(2) deleted text beginthe sum of (a) the district's total hazardous substance aid and levy for fiscal years
1985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b)
deleted text end the
district's health and safety revenue under this subdivision, for years before the fiscal year
to which the levy is attributable.

Subd. 4.

Health and safety levy.

To receive health and safety revenue, a district
may levy an amount equal to the district's health and safety revenue as defined in
subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by
dividing the adjusted net tax capacity of the district for the year preceding the year the
levy is certified by the adjusted marginal cost pupil units in the district for the school year
to which the levy is attributable, to $2,935.

Subd. 5.

Health and safety aid.

A district's health and safety aid is the difference
between its health and safety revenue and its health and safety levy. If a district does not
levy the entire amount permitted, health and safety aid must be reduced in proportion to
the actual amount levied. Health and safety aid may not be reduced as a result of reducing
a district's health and safety levy according to section 123B.79.

Subd. 6.

Uses of health and safety revenue.

deleted text begin(a)deleted text end Health and safety revenue may be
used only for approved expenditures necessary to correct fire and life safety hazards, deleted text beginor for
the
deleted text endnew text begin design, purchase, installation, maintenance and inspection of fire protection and alarm
equipment, purchase or construction of appropriate facilities for the storage of combustible
and flammable materials, inventories and facility modifications to comply with lab
safety requirements pursuant to section 121A.31, inspection, testing, repair,
new text end removal or
encapsulationnew text begin, and disposalnew text end of deleted text beginasbestos from school buildings or property owned or being
acquired by the district, asbestos-related repairs,
deleted text endnew text begin asbestos-containing building materials,new text end
cleanup and disposal of polychlorinated biphenyls deleted text beginfound in school buildings or property
owned or being acquired by the district, or the
deleted text endnew text begin, cleanup and disposal of hazardous and
infectious wastes,
new text end cleanup, removal, disposal, and repairs related to storing heating fuel
or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined in
section 296A.01, deleted text beginMinnesotadeleted text endnew text begin correction ofnew text end occupational safety and health administration
regulated deleted text beginfacility and equipmentdeleted text end hazards, indoor air quality new text begininspections, investigations and
testing,
new text endmold abatement, new text beginand new text endupgrades or replacement of mechanical ventilation systems
to meet American Society of Heating, Refrigerating and Air Conditioning Engineers
standards and State Mechanical Code, new text begindesign, materials, and installation of local exhaust
ventilation systems, including required make up air for controlling regulated hazardous
substances, correction of
new text endDepartment of Health Food Code deleted text beginanddeleted text endnew text begin violations, correction ofnew text end
swimming pool hazards excluding depth correction, new text beginplayground safety inspections and
the installation of impact surfacing materials, bleacher repair or rebuilding to comply
with section 16B.616, purchase and maintenance of equipment and supplies necessary
for operation of the district's emergency plan, testing and mitigation of elevated radon
hazards, lead in water, paint, soil and toys testing, copper in water testing, cleanup after
major weather-related disasters or flooding, reduction of excessive organic and inorganic
levels in wells and well capping of abandoned wells, installation and testing of boiler
backflow valves to prevent contamination of potable water, vaccinations, titers, and
preventative supplies for bloodborne pathogen compliance, costs to comply with the
Janet B. Johnson Parents' Right To Know Act,
new text endand health, safety, and environmental
managementnew text begin costs associated with implementing the district's health and safety program
including costs to establish and operate safety committees, in school buildings or property
owned or being acquired by the district
new text end. Testing and calibration activities are permitted
for existing mechanical ventilation systems at intervals no less than every five years.
deleted text begin Health and safety revenue must not be used to finance a lease purchase agreement,
installment purchase agreement, or other deferred payments agreement. Health and safety
revenue must not be used for the construction of new facilities or the purchase of portable
classrooms, for interest or other financing expenses, or for energy efficiency projects
under section 123B.65. The revenue may not be used 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.
deleted text end

new text begin Subd. 6a. new text end

new text begin Restrictions on health and safety revenue. new text end

deleted text begin(b)deleted text end Notwithstanding
deleted text begin paragraph (a)deleted text endnew text begin subdivision 6new text end, health and safety revenue must not be used new text beginto finance a
lease purchase agreement, installment purchase agreement, or other deferred payments
agreement, for the construction of new facilities or the purchase of portable classrooms,
for interest or other financing expenses, or 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,
new text endfor replacement of building materials or facilities including
roof, walls, windows, internal fixtures and flooring, nonhealth and safety costs associated
with demolition of facilities, structural repair or replacement of facilities due to unsafe
conditions, violence prevention and facility security, ergonomics, new text beginor for new text endbuilding and
heating, ventilating and air conditioning supplies, maintenance, and cleaning activities.
deleted text begin All assessments, investigations, inventories, and support equipment not leading to the
engineering or construction of a project shall be included in the health, safety, and
environmental management costs in subdivision 8, paragraph (a).
deleted text end

new text begin Subd. 6b. new text end

new text begin Health and safety projects. new text end

new text begin (a) Health and safety revenue applications
defined in subdivision 1 must be accompanied by a description of each project for which
funding is being requested. Project descriptions must provide enough detail for an auditor
to determine if the work qualifies for revenue. Project descriptions need not include
itemized details such as material types, room locations, square feet, names, or license
numbers. The commissioner shall approve only projects that comply with subdivisions 6
and 7, as defined by the Department of Education.
new text end

new text begin (b) Districts may request funding for projects based on self-assessments, safety
committee recommendations, insurance inspections, management assistance reports,
fire marshal orders, or other mandates. Notwithstanding subdivision 1, paragraph (b),
and subdivision 8, paragraph (b), individual project size for projects authorized by this
subdivision is not limited and may include related work in multiple facilities. Health and
safety management costs from subdivision 8 may be reported as a single project.
new text end

new text begin (c) The commissioner may approve projects based on projected health and safety
expenditures.
new text end

new text begin (d) All costs directly related to a project shall be reported in the appropriate Uniform
Financial Accounting and Reporting Standards (UFARS) finance code.
new text end

new text begin (e) Allowable costs associated with physical hazard management shall be reported
under finance code 347.
new text end

new text begin (f) Allowable costs associated with hazardous substance management shall be
reported under finance code 349.
new text end

new text begin (g) Allowable costs associated with health and safety management shall be reported
under finance code 352.
new text end

new text begin (h) Allowable costs associated with asbestos management shall be reported under
finance code 358.
new text end

new text begin (i) Allowable costs associated with fire/life safety shall be reported under finance
code 363. For projects exceeding $10,000, a fire marshal plan review is required.
new text end

new text begin (j) Allowable costs associated with indoor air quality (IAQ) management shall be
reported under finance code 366.
new text end

new text begin (k) Districts shall update project estimates with actual expenditures for each
fiscal year. If a project's final cost is significantly higher than originally approved, the
commissioner may request additional supporting information.
new text end

new text begin Subd. 6c. new text end

new text begin Appeals process. new text end

new text begin In the event a district is denied funding approval for
a project the district believes complies with subdivisions 6 and 7, and is not otherwise
excluded, a district may appeal the decision. All such requests must be in writing. The
commissioner shall respond in writing. The commissioner may request a report from a
qualified third-party evaluator for projects with a value exceeding $10,000. A written
request should contain the following: project number; description and amount; reason for
denial; unresolved questions for consideration; reasons for reconsideration; and a specific
statement of what action the district is requesting.
new text end

Subd. 7.

Proration.

In the event that the health and safety aid available for any year
is prorated, a district having its aid prorated may levy an additional amount equal to the
amount not paid by the state due to proration.

Subd. 8.

Health, safety, and environmental management cost.

(a) new text begin"Health, safety,
and environmental management" is defined in section 123B.56.
new text end

new text begin (b) new text endA district's cost for health, safety, and environmental management is limited to
the lesser of:

(1) actual cost to implement their plan; or

(2) an amount determined by the commissioner, based on enrollment, building
age, and size.

deleted text begin (b)deleted text endnew text begin (c)new text end The deleted text begindepartmentdeleted text endnew text begin commissionernew text end may deleted text begincontract with regional service
organizations, private contractors, Minnesota Safety Council, or state agencies to
deleted text end provide
management assistance to school districts for health and safety capital projectsnew text begin at a
district's request
new text end. Management assistance is the development of written programs for
the identification, recognition and control of hazards, and prioritization and scheduling
of district health and safety capital projects. The deleted text begindepartmentdeleted text endnew text begin commissionernew text end shall not
new text begin mandate management assistance or new text endexclude private contractors from the opportunity to
provide any health and safety services to school districts.

deleted text begin (c) Notwithstanding paragraph (b), the department may approve revenue, up to
the limit defined in paragraph (a) for districts having an approved health, safety, and
environmental management plan that uses district staff to accomplish coordination and
provided services.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end