HF 786

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/09/2017 10:50am

A bill for an act
relating to education finance; authorizing aid payments to certain districts with
maximum effort loan interest payments between December 1, 1997, and June 30,
2016; proposing coding for new law in Minnesota Statutes, chapter 477A.

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

Section 1.

new text begin [477A.09] MAXIMUM EFFORT LOAN AID.
new text end

new text begin (a) For fiscal years 2018 to 2022, each school district with a maximum effort loan under
sections 126C.61 to 126C.72, outstanding as of June 30, 2016, is eligible for an aid payment
equal to one-fifth of the amount of interest that was paid on the loan between December 1,
1990, and June 30, 2016. A school district with a maximum effort capital loan outstanding
as of June 30, 2017, is eligible for an annual aid payment equal to one-fifth of the estimated
amount of interest that will be paid by the district on the loan between June 30, 2017, and
June 30, 2021. Aid payments under this section must be used to reduce current year property
taxes levied on net tax capacity within the district or to reduce future years' tax levies by:
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new text begin (1) retaining payments made under this section in the district's debt redemption fund for
up to 20 years, notwithstanding the two-year limit under section 475.61, subdivision 3; or
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new text begin (2) financing a defeasance of any future payments on outstanding bonded debt.
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new text begin (b) Aid under this section must be paid in fiscal years 2018 to 2022. An amount sufficient
to make aid payments under this section is annually appropriated from the general fund to
the commissioner of education.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal years 2018 to 2022.
new text end