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Minnesota Legislature

Office of the Revisor of Statutes

SF 1451

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

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; expanding eligibility for the cooperative secondary
facilities program; authorizing the issuance of state bonds; appropriating money;
amending Minnesota Statutes 2006, sections 123A.44; 123A.441; 123A.442;
123A.443.

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

Section 1.

Minnesota Statutes 2006, section 123A.44, is amended to read:


123A.44 CITATION.

Sections 123A.441 to 123A.446 may be cited as the "Cooperative deleted text beginSecondarydeleted text end
Facilities Grant Act."

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2006, section 123A.441, is amended to read:


123A.441 POLICY AND PURPOSE.

Because of the rates of decline in school-aged population, population shifts and
economic changes that the state has experienced in recent years and anticipates in future
years, and because in some instances local districts have not, and will not be able to
provide the required construction funds through local property taxes, the purpose of the
cooperative deleted text beginsecondarydeleted text end facilities grant program is to provide an incentive to encourage
cooperation in making available to all deleted text beginsecondarydeleted text end students those educational programs,
services and facilities that are most efficiently and effectively provided by a cooperative
effort of deleted text beginseveraldeleted text end school districts. The policy and purpose of sections 123A.442 to
123A.446 is to use the credit of the state, to a limited degree, to provide grants to
cooperating groups of districts to improve and expand the educational opportunities and
facilities available to their deleted text beginsecondarydeleted text end students.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2006, section 123A.442, is amended to read:


123A.442 APPROVAL AUTHORITY; APPLICATION FORMS.

Subdivision 1.

Approval by commissioner.

To the extent money is available, the
commissioner may approve projects from applications submitted under section 123A.443.
The grant money must be used only to acquire, construct, remodel or improve the building
or site of a cooperative deleted text beginsecondarydeleted text end facility under contracts to be entered into within 15
months after the date on which each grant is awarded.

Subd. 2.

Cooperation and combination.

Districts that new text beginhave not already
consolidated and
new text endreceive a cooperative deleted text beginsecondarydeleted text end facilities grant deleted text beginafter May 1, 1991,deleted text end shall:

(1) submit a new text beginconsolidation new text endplan deleted text beginas set forth indeleted text endnew text begin undernew text end section deleted text begin123A.36deleted text endnew text begin 123A.48new text end for
approval by the deleted text beginState Board of Education before December 31, 1999, ordeleted text end Department of
Education deleted text beginafter December 30, 1999deleted text end; and

(2) hold a referendum on the question of deleted text begincombinationdeleted text endnew text begin consolidationnew text end no later than
four years after a grant is awarded under subdivision 1.

The districts are eligible for deleted text begincooperation and combinationdeleted text endnew text begin consolidationnew text end revenue
under section deleted text begin123A.39, subdivision 3deleted text endnew text begin 123A.485new text end.

new text begin Subd. 3. new text end

new text begin Consolidated districts. new text end

new text begin A school district that has consolidated with
another school district since July 1, 1980, is eligible for a cooperative facilities grant.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2006, section 123A.443, is amended to read:


123A.443 GRANT APPLICATION PROCESS.

Subdivision 1.

Qualification.

Any group of districtsnew text begin or a consolidated districtnew text end
that meets the criteria required under subdivision 2 may apply for an incentive grant for
construction of a new deleted text beginsecondarydeleted text end facility or for remodeling and improving an existing
deleted text begin secondarydeleted text end facility. A grant for new construction must not exceed the lesser of deleted text begin$5,000,000deleted text endnew text begin
$20,000,000
new text end or 75 percent of the approved construction costs of a cooperative deleted text beginsecondarydeleted text end
education facility. A grant for remodeling and improving an existing facility must not
exceed deleted text begin$200,000deleted text endnew text begin the lesser of $10,000,000, or 75 percent of the approved remodeling
costs
new text end.

Subd. 2.

Review by commissioner.

(a) A group of districts new text beginor a consolidated district
new text endthat submits an application for a grant must submit a proposal to the commissioner for
review and comment under section 123B.71. The commissioner shall prepare a review
and comment on the proposed facility by July 1 of an odd-numbered year, regardless of
the amount of the capital expenditure required to acquire, construct, remodel or improve
the deleted text beginsecondarydeleted text end facility. The commissioner shall not approve an application for an incentive
grant for any deleted text beginsecondarydeleted text end facility unless the facility receives a favorable review and
comment under section 123B.71 and the following criteria are met:

(1) new text beginthe applicant is a consolidated district or new text enda minimum of two or more districtsdeleted text begin,
with kindergarten to grade 12 enrollments in each district of no more than 1,200 pupils,
enter
deleted text endnew text begin that have enterednew text end into a joint powers agreement;

(2) new text beginfor a group of districts, new text enda joint powers board representing all participating
districts is established under section 471.59 to govern the cooperative deleted text beginsecondarydeleted text end facility;

deleted text begin (3) the planned secondary facility will result in the joint powers district meeting the
requirements of Minnesota Rules, parts 3500.2010 and 3500.2110;
deleted text end

deleted text begin (4) at least 198 pupils would be served in grades 10 to 12, 264 pupils would be
served in grades 9 to 12, or 396 pupils would be served in grades 7 to 12;
deleted text end

deleted text begin (5)deleted text end new text begin(3) for a group of districts, new text endno more than one superintendent is employed by the
joint powers board as a result of the cooperative deleted text beginsecondarydeleted text end facility agreement;

deleted text begin (6)deleted text endnew text begin (4)new text end a statement of need is submitted, that may include reasons why the current
deleted text begin secondarydeleted text end facilities are inadequate, unsafe or inaccessible to persons with disabilities;

deleted text begin (7)deleted text endnew text begin (5)new text end an educational plan is prepared, that includes input from both community and
professional staff;

deleted text begin (8)deleted text endnew text begin (6) for a group of districts,new text end a combined seniority list for all participating districts
is developed by the joint powers board;

deleted text begin (9)deleted text endnew text begin (7) for a group of districts,new text end an education program is developed that provides for
more learning opportunities and course offerings, including the offering of advanced
placement courses, for students than is currently available in any single member district;

deleted text begin (10)deleted text endnew text begin (8)new text end a plan is developed for providing instruction of any resident students in
other districts when distance to the deleted text beginsecondarydeleted text end education facility makes attendance at the
facility unreasonably difficult or impractical; and

deleted text begin (11)deleted text endnew text begin (9) for a secondary facility,new text end the joint powers board established under clause (2)
discusses with technical colleges located in the area how vocational education space in
the cooperative deleted text beginsecondarydeleted text end facility could be jointly used for secondary and postsecondary
purposes.

(b) To the extent possible, the joint powers board is encouraged to provide for
severance pay or for early retirement incentives under section 122A.48, for any teacher
or administrator, as defined under section 122A.40, subdivision 1, who is placed on
unrequested leave as a result of the cooperative deleted text beginsecondarydeleted text end facility agreement.

(c) For the purpose of paragraph (a), clause deleted text begin(8)deleted text endnew text begin (6)new text end, each district must be considered
to have started school each year on the same date.

(d) The districts may develop a plan that provides for the location of social service,
health, and other programs serving pupils and community residents within the cooperative
deleted text begin secondarydeleted text end facility. The commissioner shall consider this plan when preparing a review
and comment on the proposed facility.

(e) The districts must schedule and conduct a meeting on library services. The
school districts, in cooperation with the regional public library system and its appropriate
member libraries, must discuss the possibility of including jointly operated library services
at the cooperative deleted text beginsecondarydeleted text end facility.

(f) The board of a district that has reorganized under section 123A.37 or 123A.48
and that is applying for a grant for remodeling or improving an existing facility may act in
the place of a joint powers board to meet the criteria of this subdivision.

Subd. 3.

Reorganizing districts.

A district that is a member of a joint powers
board established under subdivision 2 and that is planning to reorganize under section
123A.45, 123A.46, or 123A.48 must notify the joint powers board one year in advance of
the effective date of the reorganization. Notwithstanding section 471.59 or any other law
to the contrary, the board of a district that reorganizes under section 123A.45, 123A.46, or
123A.48 may appoint representatives to the joint powers board who will serve on the joint
powers board for two years after the effective date of the reorganization if authorized in
the agreement establishing the joint powers board to govern the cooperative deleted text beginsecondarydeleted text end
facility. These representatives shall have the same powers as representatives of any other
school district under the joint powers agreement.

Subd. 4.

District procedures.

A joint powers board of a deleted text beginsecondarydeleted text end district
established under subdivision 2 or a school board of a reorganized district that intends
to apply for a grant must adopt a resolution stating the proposed costs of the project,
the purpose for which the costs are to be incurred, and an estimate of the dates when
the facilities for which the grant is requested will be contracted for and completed.
Applications for the state grants must be accompanied by (a) a copy of the resolution, (b)
a certificate by the clerk and treasurer of the joint powers board showing the current
outstanding indebtedness of each member district, and (c) a certificate by the county
auditor of each county in which a portion of the joint powers district lies showing the
information in the auditor's official records that is required to be used in computing the
debt limit of the district under section 475.53, subdivision 4. The clerk's and treasurer's
certificate must show, as to each outstanding bond issue of each member district, the
amount originally issued, the purpose for which issued, the date of issue, the amount
remaining unpaid as of the date of the resolution, and the interest rates and due dates
and amounts of principal thereon. Applications and necessary data must be in the
form prescribed by the commissioner deleted text beginand the rules of the State Board of Education
before December 31, 1999, and after December 30, 1999, in the form prescribed by the
commissioner
deleted text end. Applications must be received by the commissioner by September 1 of an
odd-numbered year. When an application is received, the commissioner shall obtain from
the commissioner of revenue, and from the Public Utilities Commission when required,
the information in their official records that is required to be used in computing the debt
limit of the joint powers district under section 475.53, subdivision 4.

Subd. 5.

Award of grants.

By November 1 of the odd-numbered year, the
commissioner shall examine and consider all applications for grants, and if any district is
found not qualified, the commissioner shall promptly notify that board.

A grant award is subject to verification by the district as specified in subdivision
8. A grant award for a new facility must not be made until the site of the deleted text beginsecondarydeleted text end
facility has been determined. A grant award to remodel or improve an existing facility
must not be made until the districts have reorganized. If the total amount of the approved
applications exceeds the amount that is or can be made available, the commissioner shall
new text begin first award grants to districts that will close at least one existing school building, and then,
to the extent funds remain,
new text endallot the available amount equally between deleted text beginthedeleted text endnew text begin any othernew text end
approved applicant districts. The commissioner shall promptly certify to each qualified
district the amount, if any, of the grant awarded to it.

Subd. 6.

Collocation grant.

A group of districts that receives a grant for a new
facility under subdivision 4 is also eligible to receive an additional grant in the amount of
$1,000,000. To receive the additional grant, the group of districts must develop a plan
under subdivision 2, paragraph (d), that provides for the location of a significant number
of noneducational student and community service programs within the cooperative
deleted text begin secondarydeleted text end facility.

Subd. 7.

Referendum; bond issue.

Within 180 days after being awarded a grant
for a new facility under subdivision 5, the joint powers board must submit the question
of authorizing the borrowing of funds for the deleted text beginsecondarydeleted text end facility to the voters of the joint
powers district at a special election, which may be held in conjunction with the annual
election of the school board members of the member districts. The question submitted
must state the total amount of funding needed from all sources. A majority of those voting
in the affirmative on the question is sufficient to authorize the joint powers board to accept
the grant and to issue the bonds on public sale deleted text beginin accordance withdeleted text endnew text begin according tonew text end chapter
475. The clerk of the joint powers board must certify the vote of the bond election to the
commissioner. If the question is approved by the voters, the commissioner shall notify the
approved applicant districts that the grant amount certified under subdivision 5 is available
and appropriated for payment under this subdivision. If a majority of those voting on the
question do not vote in the affirmative, the grant must be canceled.

Subd. 8.

Contract.

Each grant must be evidenced by a contract between the board
and the state acting through the commissioner. The contract obligates the state to pay to
the board an amount computed according to subdivision 5, and according to a schedule,
and terms and conditions acceptable to the commissioner of finance.

Subd. 9.

Consolidation.

A group of districts that operates a cooperative deleted text beginsecondarydeleted text end
facility that was acquired, constructed, remodeled, or improved under this section and
implements consolidation proceedings according to section 123A.48, may propose a
temporary school board structure in the petition or resolution required under section
123A.48, subdivision 2. The districts may propose the number of existing school board
members of each district to become members of the board of the consolidated district
and a method to gradually reduce the membership to six or seven. The proposal must
be approved, disapproved, or modified by the deleted text beginstate board of educationdeleted text endnew text begin commissionernew text end.
The election requirements of section 123A.48, subdivision 20, do not apply to a
proposal approved by the state board. Elections conducted after the effective date of the
consolidation are subject to the Minnesota Election Law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5. new text beginSTATE BOND AUTHORIZATION.
new text end

new text begin To provide money for the cooperative facilities grant program, the commissioner
of finance, upon the request of the commissioner of education, shall issue and sell bonds
of the state up to the amount of $50,000,000 in the manner, upon the terms, and with the
effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and the Minnesota
Constitution, article XI, sections 4 to 7.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6. new text beginAPPROPRIATION.
new text end

new text begin $50,000,000 is appropriated in fiscal year 2008 from the bond proceeds fund to the
commissioner of education for cooperative facilities grants.
new text end