SF 709

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 02/23/2017 10:11am

A bill for an act
relating to education finance; authorizing aid payments to certain districts with
maximum effort loan interest payments between December 1, 1990, 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 For fiscal years 2018 through 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. 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:
new text end

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
new text end

new text begin (2) financing a defeasance of any future payments on outstanding bonded debt.
new text end

new text begin Aid under this section must be paid in fiscal years 2018 through 2022. An amount
sufficient to make aid payments under this section is annually appropriated from the general
fund to the commissioner of education.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2018 and thereafter.
new text end