1.1                          A bill for an act 
  1.2             relating to education; increasing the annual operating 
  1.3             capital funds; reducing the debt service threshold 
  1.4             rate; increasing the debt service equalizing factor; 
  1.5             consolidating facilities levies; reducing the 
  1.6             alternative bonding and levy program square footage 
  1.7             requirement; providing for a sunset of the disabled 
  1.8             access levy; providing authority for school districts 
  1.9             to lease new school buildings; appropriating money; 
  1.10            amending Minnesota Statutes 1998, sections 123B.53; 
  1.11            123B.58, subdivisions 3 and 4; 123B.59; 123B.63, 
  1.12            subdivisions 3 and 4; 126C.10, subdivision 13; and 
  1.13            126C.40, subdivisions 1, 2, 3, and 6; repealing 
  1.14            Minnesota Statutes 1998, sections 123A.44; 123A.441; 
  1.15            123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 
  1.16            123B.57, subdivisions 4, 5, and 7; 123B.58; 123B.63, 
  1.17            subdivisions 1 and 2; 123B.64; 123B.66; 123B.67; 
  1.18            123B.68; and 123B.69. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20     Section 1.  Minnesota Statutes 1998, section 123B.53, is 
  1.21  amended to read: 
  1.22     123B.53 [~~DEBT SERVICE~~ FACILITIES EQUALIZATION PROGRAM.] 
  1.23     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  1.24  section, the eligible ~~debt service~~ facilities revenue of a 
  1.25  district is defined as follows: 
  1.26     (1) the amount needed to produce between five and six 
  1.27  percent in excess of the amount needed to meet when due the 
  1.28  principal and interest payments on the obligations of the 
  1.29  district for eligible projects according to subdivision 2, 
  1.30  including the amounts necessary for repayment of energy loans 
  1.31  according to section ~~216C.37 or sections 298.292 to 298.298~~ 
  1.32  126C.40, subdivision 5, debt service loans and capital loans, 
  2.1   lease purchase payments under section 126C.40, subdivision 2, 
  2.2   alternative facilities ~~levies~~ revenue under section 123B.59, 
  2.3   subdivision 5, historic building revenue, under section 123B.64, 
  2.4   subdivision 2; health and safety revenue, under section 123B.57, 
  2.5   subdivision 3; handicapped access and fire safety revenue, under 
  2.6   section 123B.58, subdivision 3; building construction and lease 
  2.7   program, under section 123B.63; building lease revenue, under 
  2.8   section 126C.40, subdivision 1; and cooperative building repair 
  2.9   revenue, under section 126C.40, subdivision 3, minus 
  2.10     (2) the amount of debt service excess levy reduction for 
  2.11  that school year calculated according to the procedure 
  2.12  established by the commissioner. 
  2.13     (b) The obligations in this paragraph are excluded from 
  2.14  eligible ~~debt service~~ facilities revenue: 
  2.15     (1) obligations under section 123B.61; 
  2.16     (2) the part of debt service principal and interest paid 
  2.17  from the taconite environmental protection fund or northeast 
  2.18  Minnesota economic protection trust; 
  2.19     (3) obligations issued under Laws 1991, chapter 265, 
  2.20  article 5, section 18, as amended by Laws 1992, chapter 499, 
  2.21  article 5, section 24; and 
  2.22     (4) obligations under section 123B.62. 
  2.23     (c) For purposes of this section, if a preexisting school 
  2.24  district reorganized under sections 123A.35 to 123A.43, 123A.46, 
  2.25  and 123A.48 is solely responsible for retirement of the 
  2.26  preexisting district's bonded indebtedness, capital loans or 
  2.27  debt service loans, ~~debt service~~ facilities equalization aid 
  2.28  must be computed separately for each of the preexisting 
  2.29  districts. 
  2.30     Subd. 2.  [ELIGIBILITY.] (a) The following portions of a 
  2.31  district's ~~debt service levy~~ facilities revenue qualify for ~~debt~~ 
  2.32  ~~service~~ facilities equalization: 
  2.33     (1) debt service for repayment of principal and interest on 
  2.34  bonds issued before July 2, 1992; 
  2.35     (2) debt service for bonds refinanced after July 1, 1992, 
  2.36  if the bond schedule has been approved by the commissioner and, 
  3.1   if necessary, adjusted to reflect a 20-year maturity schedule; 
  3.2   ~~and~~ 
  3.3      (3) debt service for bonds issued after July 1, 1992, for 
  3.4   construction projects that have received a positive review and 
  3.5   comment according to section 123B.71, if the commissioner has 
  3.6   determined that the district has met the criteria under section 
  3.7   126C.69, subdivision 3, and if the bond schedule has been 
  3.8   approved by the commissioner and, if necessary, adjusted to 
  3.9   reflect a 20-year maturity schedule~~.~~; 
  3.10     (4) alternative facilities revenue, according to section 
  3.11  123B.59, subdivision 5; 
  3.12     (5) historic building revenue, according to section 
  3.13  123B.64, subdivision 2; 
  3.14     (6) health and safety revenue, according to section 
  3.15  123B.57, subdivision 3; 
  3.16     (7) handicapped access and fire safety revenue, according 
  3.17  to section 123B.58, subdivision 3; 
  3.18     (8) building construction and lease revenue, according to 
  3.19  section 123B.63, subdivision 3; 
  3.20     (9) building lease revenue, according to section 126C.40, 
  3.21  subdivision 1; and 
  3.22     (10) cooperative building repair revenue, according to 
  3.23  section 126C.40, subdivision 3.  
  3.24     (b) The criterion in section 126C.69, subdivision 3, 
  3.25  paragraph (a), clause (2), shall be considered to have been met 
  3.26  if the district in the fiscal year in which the bonds are 
  3.27  authorized at an election conducted under chapter 475: 
  3.28     (i) if grades 9 through 12 are to be served by the 
  3.29  facility, and an average of at least 66 pupils per grade in 
  3.30  these grades are served; or 
  3.31     (ii) is eligible for elementary or secondary sparsity 
  3.32  revenue. 
  3.33     (c) The criterion in section 126C.69, subdivision 3, 
  3.34  paragraph (a), clause (2), shall also be considered to have been 
  3.35  met if the construction project under review serves students in 
  3.36  kindergarten to grade 8.  Only the debt service levy for that 
  4.1   portion of the facility serving students in prekindergarten to 
  4.2   grade 8, as determined by the commissioner, shall be eligible 
  4.3   for debt service equalization under this paragraph. 
  4.4      (d) The criterion described in section 126C.69, subdivision 
  4.5   3, paragraph (a), clause (9), does not apply to bonds authorized 
  4.6   by elections held before July 1, 1992. 
  4.7      (e) For the purpose of this subdivision the department 
  4.8   shall determine the eligibility for sparsity at the location of 
  4.9   the new facility, or the site of the new facility closest to the 
  4.10  nearest operating school if there is more than one new facility. 
  4.11     (f) Notwithstanding paragraphs (a) to (e), debt service for 
  4.12  repayment of principal and interest on bonds issued after July 
  4.13  1, 1997, does not qualify for ~~debt service~~ facilities 
  4.14  equalization aid unless the primary purpose of the facility is 
  4.15  to serve students in kindergarten through grade 12. 
  4.16     Subd. 3.  [NOTIFICATION.] A district eligible for ~~debt~~ 
  4.17  ~~service~~ facilities equalization revenue under subdivision 2 must 
  4.18  notify the commissioner of the amount of its intended ~~debt~~ 
  4.19  ~~service~~ facilities equalization revenue calculated under 
  4.20  subdivision 1 for all bonds sold prior to the notification by 
  4.21  July 1 of the calendar year the levy is certified. 
  4.22     Subd. 4.  [~~DEBT SERVICE~~ FACILITIES EQUALIZATION REVENUE.] 
  4.23  ~~(a) For fiscal years 1995 and later,~~ The ~~debt service~~ facilities 
  4.24  equalization revenue of a district equals the eligible ~~debt~~ 
  4.25  ~~service~~ facilities equalization revenue minus the amount raised 
  4.26  by a levy of ten percent times the adjusted net tax capacity of 
  4.27  the district. 
  4.28     ~~(b) For fiscal year 1993, debt service equalization revenue~~ 
  4.29  ~~equals one-third of the amount calculated in paragraph (a).~~ 
  4.30     ~~(c) For fiscal year 1994, debt service equalization revenue~~ 
  4.31  ~~equals two-thirds of the amount calculated in paragraph (a).~~ 
  4.32     Subd. 5.  [EQUALIZED ~~DEBT SERVICE~~ FACILITIES LEVY.] To 
  4.33  obtain ~~debt service~~ facilities equalization revenue, a district 
  4.34  must levy an amount not to exceed the district's ~~debt service~~ 
  4.35  facilities equalization revenue times the lesser of one or the 
  4.36  ratio of: 
  5.1      (1) the quotient derived by dividing the adjusted net tax 
  5.2   capacity of the district for the year before the year the levy 
  5.3   is certified by the resident pupil units in the district for the 
  5.4   school year ending in the year prior to the year the levy is 
  5.5   certified; to 
  5.6      (2) ~~$4,707.50~~ $4,500. 
  5.7      Subd. 6.  [~~DEBT SERVICE~~ FACILITIES EQUALIZATION AID.] A 
  5.8   district's ~~debt service~~ facilities equalization aid is the 
  5.9   difference between the ~~debt service~~ facilities equalization 
  5.10  revenue and the equalized ~~debt service~~ facilities levy.  If the 
  5.11  amount of ~~debt service~~ facilities equalization aid actually 
  5.12  appropriated for the fiscal year in which this calculation is 
  5.13  made is insufficient to fully fund ~~debt service~~ facilities 
  5.14  equalization aid, the commissioner shall prorate the amount of 
  5.15  aid across all eligible districts. 
  5.16     Subd. 7.  [~~DEBT SERVICE~~ FACILITIES EQUALIZATION AID PAYMENT 
  5.17  SCHEDULE.] ~~Debt service~~ Facilities equalization aid must be paid 
  5.18  ~~as follows:  30 percent before September 15, 30 percent before~~ 
  5.19  ~~December 15, 30 percent before March 15, and a final payment of~~ 
  5.20  ~~ten percent by July 15 of the subsequent fiscal year~~ according 
  5.21  to section 127A.45, subdivision 10. 
  5.22     Subd. 8.  [DEBT SERVICE PRIORITY.] Of the amount paid under 
  5.23  this section, the district must first allocate the amount 
  5.24  attributable to obligations under chapter 475.  Remaining aid 
  5.25  may be used for the other purposes of this section. 
  5.26     Sec. 2.  Minnesota Statutes 1998, section 123B.58, 
  5.27  subdivision 3, is amended to read: 
  5.28     Subd. 3.  [~~LEVY AUTHORITY~~ REVENUE.] The district ~~may levy~~ 
  5.29  is eligible for revenue up to $300,000 under this section, as 
  5.30  approved by the commissioner.  The approved amount may be ~~levied~~ 
  5.31  over ~~eight~~ five or fewer years. 
  5.32     Sec. 3.  Minnesota Statutes 1998, section 123B.58, 
  5.33  subdivision 4, is amended to read: 
  5.34     Subd. 4.  [~~LEVY AUTHORITY~~ REVENUE IN COMBINED DISTRICTS.] 
  5.35  Notwithstanding subdivision 3, a district that has combined or 
  5.36  consolidated may ~~levy~~ receive revenue up to 50 percent times 
  6.1   $300,000 times the number of former districts that operated on 
  6.2   June 30, 1991, in the area that now makes up the combined or 
  6.3   consolidated district.  The approved amount is reduced by any 
  6.4   amount levied under subdivision 3 in the consolidated or 
  6.5   combined district or in the former districts that make up the 
  6.6   consolidated or combined district.  Levy authority under this 
  6.7   subdivision expires at the same time as levy authority under 
  6.8   subdivision 3. 
  6.9      Sec. 4.  Minnesota Statutes 1998, section 123B.59, is 
  6.10  amended to read: 
  6.11     123B.59 [ALTERNATIVE FACILITIES ~~BONDING AND LEVY~~ REVENUE 
  6.12  PROGRAM.] 
  6.13     Subdivision 1.  [TO QUALIFY.] An independent or special 
  6.14  school district qualifies to participate in the alternative 
  6.15  facilities ~~bonding and levy~~ revenue program if the district has: 
  6.16     (1) more than 66 students per grade; 
  6.17     (2) over ~~1,850,000~~ 1,200,000 square feet of space; 
  6.18     (3) average age of building space is 20 years or older; 
  6.19     (4) insufficient funds from projected health and safety 
  6.20  revenue and capital facilities revenue to meet the requirements 
  6.21  for deferred maintenance, to make accessibility improvements, or 
  6.22  to make fire, safety, or health repairs; and 
  6.23     (5) a ten-year facility plan approved by the commissioner 
  6.24  according to subdivision 2. 
  6.25     Subd. 2.  [TEN-YEAR PLAN.] (a) A qualifying district must 
  6.26  have a ten-year facility plan approved by the commissioner that 
  6.27  includes an inventory of projects and costs that would be 
  6.28  eligible for: 
  6.29     (1) health and safety revenue; 
  6.30     (2) disabled access levy; and 
  6.31     (3) deferred capital expenditures and maintenance projects 
  6.32  necessary to prevent further erosion of facilities. 
  6.33     (b) The school district must: 
  6.34     (1) annually update the plan; 
  6.35     (2) biennially submit a facility maintenance plan; and 
  6.36     (3) indicate whether the district will issue bonds to 
  7.1   finance the plan or ~~levy~~ annually include program revenue under 
  7.2   the facilities equalization program, under section 123B.53, for 
  7.3   the costs. 
  7.4      Subd. 3.  [BOND AUTHORIZATION.] A school district, upon 
  7.5   approval of its board and the commissioner, may issue general 
  7.6   obligation bonds under this section to finance approved 
  7.7   facilities plans.  Chapter 475, except sections 475.58 and 
  7.8   475.59, must be complied with.  ~~The district may levy under~~ 
  7.9   ~~subdivision 5 for the debt service revenue.~~  The authority to 
  7.10  issue bonds under this section is in addition to any bonding 
  7.11  authority authorized by this chapter, or other law.  The amount 
  7.12  of bonding authority authorized under this section must be 
  7.13  disregarded in calculating the bonding or net debt limits of 
  7.14  this chapter, or any other law other than section 475.53, 
  7.15  subdivision 4. 
  7.16     Subd. 4.  [~~LEVY~~ REVENUE PROHIBITED FOR CAPITAL PROJECTS.] A 
  7.17  district that participates in the alternative facilities ~~bonding~~ 
  7.18  ~~and levy~~ revenue program is not eligible ~~to levy and cannot~~ 
  7.19  ~~receive aid~~ for revenue under sections 123B.57 and 123B.58 for 
  7.20  any capital projects funded under this section.  A district 
  7.21  may ~~levy and receive aid for health and safety~~ receive revenue 
  7.22  for environmental management costs and health and safety 
  7.23  regulatory, hazard assessment, record keeping, and maintenance 
  7.24  programs as defined in section ~~123A.443~~ 123B.57, subdivision 2, 
  7.25  and approved by the commissioner. 
  7.26     Subd. 5.  [~~LEVY~~ REVENUE AUTHORIZED.] A district, after 
  7.27  local board approval, may ~~levy~~ receive revenue for costs related 
  7.28  to an approved facility plan as follows:  
  7.29     (a) if the district has indicated to the commissioner that 
  7.30  bonds will be issued, the district may ~~levy~~ receive revenue for 
  7.31  the principal and interest payments on outstanding bonds issued 
  7.32  according to subdivision 3 after reduction for any alternative 
  7.33  facilities aid receivable under subdivision 6; or 
  7.34     (b) if the district has indicated to the commissioner that 
  7.35  the plan will be funded through levy authorized under section 
  7.36  123B.53, subdivision 5, the district may levy according to the 
  8.1   schedule approved in the plan after reduction for any 
  8.2   alternative facilities aid receivable under subdivision 6. 
  8.3      Subd. 6.  [ALTERNATIVE FACILITIES AID.] A district's 
  8.4   alternative facilities aid is the amount equal to the district's 
  8.5   annual debt service costs, provided that the amount does not 
  8.6   exceed the amount certified to be levied for those purposes for 
  8.7   taxes payable in 1997, or for a district that made a levy under 
  8.8   subdivision 5, paragraph (b), the lesser of the district's 
  8.9   annual levy amount, or one-sixth of the amount of levy that it 
  8.10  certified for that purpose for taxes payable in 1998. 
  8.11     Subd. 7.  [ALTERNATIVE FACILITIES APPROPRIATION.] (a) An 
  8.12  amount not to exceed $19,700,000 for fiscal year 2000 and 
  8.13  $20,000,000 for fiscal year 2001 and each year thereafter is 
  8.14  appropriated from the general fund to the commissioner of 
  8.15  children, families, and learning for payment of alternative 
  8.16  facilities aid under subdivision 6.  
  8.17     (b) The appropriation in paragraph (a) must be reduced by 
  8.18  the amount of any money specifically appropriated for the same 
  8.19  purpose in any year from any state fund. 
  8.20     Subd. 8.  [SEPARATE ACCOUNT.] A district must establish a 
  8.21  separate account under the uniform financial accounting and 
  8.22  reporting standards (UFARS) for this program.  If the district's 
  8.23  ~~levy~~ revenue exceeds the necessary interest and principal 
  8.24  payments and noncapital health and safety costs, the district 
  8.25  must reserve the revenue to replace future bonding authority, 
  8.26  prepay bonds authorized under this program, or make payments on 
  8.27  principal and interest. 
  8.28     Sec. 5.  Minnesota Statutes 1998, section 123B.63, 
  8.29  subdivision 3, is amended to read: 
  8.30     Subd. 3.  [FACILITIES ~~DOWN PAYMENT LEVY~~ REVENUE 
  8.31  REFERENDUM.] A district may ~~levy the local tax rate~~ receive 
  8.32  revenue under the facilities equalization program for the 
  8.33  purposes of financing a down payment on a new school building or 
  8.34  to pay for the lease on a new school building used primarily for 
  8.35  regular kindergarten, elementary, or secondary instruction if 
  8.36  authorization is approved by a majority of the electors voting 
  9.1   on the question to provide funds for ~~a down payment for~~ an 
  9.2   approved project.  The election must take place no more than 
  9.3   five years before the estimated date of commencement of the 
  9.4   project.  The referendum must be held on a date set by the 
  9.5   board.  A referendum for a project not receiving a positive 
  9.6   review and comment by the commissioner under section 123B.71 
  9.7   must be approved by at least 60 percent of the voters at the 
  9.8   election.  The referendum may be called by the school board and 
  9.9   may be held: 
  9.10     (1) separately, before an election for the issuance of 
  9.11  obligations for the project under chapter 475; or 
  9.12     (2) in conjunction with an election for the issuance of 
  9.13  obligations for the project under chapter 475; or 
  9.14     (3) notwithstanding section 475.59, as a conjunctive 
  9.15  question authorizing both the ~~down payment levy~~ revenue and the 
  9.16  issuance of obligations for the project under chapter 475.  Any 
  9.17  obligations authorized for a project may be issued within five 
  9.18  years of the date of the election. 
  9.19     The ballot must provide a general description of the 
  9.20  proposed project, state the estimated total cost of the project, 
  9.21  state whether the project has received a positive or negative 
  9.22  review and comment from the commissioner, state the maximum 
  9.23  amount of the ~~down payment~~ equalized facility levy as a 
  9.24  percentage of net tax capacity, state the amount that will be 
  9.25  raised by that local tax rate in the first year it is to be 
  9.26  levied, and state the maximum number of years that the levy 
  9.27  authorization will apply. 
  9.28     The ballot must contain a textual portion with the 
  9.29  information required in this section and a question stating 
  9.30  substantially the following: 
  9.31     "Shall the ~~down payment~~ equalized facility levy proposed by 
  9.32  the board of .......... School District No. .......... be 
  9.33  approved?" 
  9.34     If approved, the amount provided by the approved local tax 
  9.35  rate applied to the net tax capacity for the year preceding the 
  9.36  year the levy is certified may be certified for the number of 
 10.1   years approved. 
 10.2      In the event a conjunctive question proposes to authorize 
 10.3   both the ~~down payment~~ equalized facilities levy, under section 
 10.4   123B.53, and the issuance of obligations for the project, 
 10.5   appropriate language authorizing the issuance of obligations 
 10.6   must also be included in the question.  
 10.7      The district must notify the commissioner of the results of 
 10.8   the referendum. 
 10.9      Sec. 6.  Minnesota Statutes 1998, section 123B.63, 
 10.10  subdivision 4, is amended to read: 
 10.11     Subd. 4.  [EXCESS BUILDING CONSTRUCTION FUND LEVY 
 10.12  PROCEEDS.] (a) For the purpose of a down payment, any funds 
 10.13  ~~remaining in the down payment account~~ that are not applied to 
 10.14  the payment of the costs of the approved project before its 
 10.15  final completion must be transferred to the district's debt 
 10.16  redemption fund.  
 10.17     (b) For the purpose of a leased building, any funds that 
 10.18  are not applied to the payment of the lease at the termination 
 10.19  of the lease must be transferred to the district's debt 
 10.20  redemption fund. 
 10.21     Sec. 7.  Minnesota Statutes 1998, section 126C.10, 
 10.22  subdivision 13, is amended to read: 
 10.23     Subd. 13.  [TOTAL OPERATING CAPITAL REVENUE.] (a) ~~For~~ 
 10.24  ~~fiscal year 1999 and thereafter,~~ Total operating capital revenue 
 10.25  for a district equals the amount determined under paragraph (b) 
 10.26  or (c), plus $68 times the resident pupil units for the school 
 10.27  year.  The revenue must be placed in a reserved account in the 
 10.28  general fund and may only be used according to subdivision 14. 
 10.29     (b) For fiscal years ~~1999~~ 2000 and later, capital revenue 
 10.30  for a district equals ~~$100~~ $150 times the district's maintenance 
 10.31  cost index times its resident pupil units for the school year. 
 10.32     (c) ~~For 1996 and later fiscal years, the previous formula~~ 
 10.33  ~~revenue for a district equals $128 times its resident pupil~~ 
 10.34  ~~units for the school year.~~ 
 10.35     ~~(d) For fiscal years 1998 and later,~~ The revenue for a 
 10.36  district that operates a program under section 124D.128, is 
 11.1   increased by an amount equal to $30 times the number of resident 
 11.2   pupil units at the site where the program is implemented. 
 11.3      Sec. 8.  Minnesota Statutes 1998, section 126C.40, 
 11.4   subdivision 1, is amended to read: 
 11.5      Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
 11.6   district finds it economically advantageous to rent or lease a 
 11.7   building or land for any instructional purposes or for school 
 11.8   storage or furniture repair, and it determines that the 
 11.9   operating capital revenue authorized under section 126C.10, 
 11.10  subdivision 13, is insufficient for this purpose, it may apply 
 11.11  to the commissioner for permission to ~~make an additional capital~~ 
 11.12  ~~expenditure levy~~ increase its equalized facilities revenue under 
 11.13  section 123B.53, subdivision 5, for this purpose.  An 
 11.14  application for permission to ~~levy under this subdivision~~ 
 11.15  increase the equalized facilities revenue must contain financial 
 11.16  justification for the proposed ~~levy~~ increase, the terms and 
 11.17  conditions of the proposed lease, and a description of the space 
 11.18  to be leased and its proposed use.  
 11.19     (b) The criteria for approval of applications to levy under 
 11.20  this subdivision must include:  the reasonableness of the price, 
 11.21  the appropriateness of the space to the proposed activity, the 
 11.22  feasibility of transporting pupils to the leased building or 
 11.23  land, conformity of the lease to the laws and rules of the state 
 11.24  of Minnesota, and the appropriateness of the proposed lease to 
 11.25  the space needs and the financial condition of the district.  
 11.26  The commissioner must not authorize ~~a levy~~ revenue under this 
 11.27  subdivision in an amount greater than the cost to the district 
 11.28  of renting or leasing a building or land for approved purposes.  
 11.29  The proceeds of this levy must not be used for custodial or 
 11.30  other maintenance services.  A district may not ~~levy~~ receive 
 11.31  revenue under this subdivision for the purpose of leasing or 
 11.32  renting a district-owned building or site to itself. 
 11.33     (c) For agreements finalized after July 1, 1997, a district 
 11.34  may not ~~levy~~ receive revenue under this subdivision for the 
 11.35  purpose of leasing:  (1) a newly constructed building used 
 11.36  primarily for regular kindergarten, elementary, or secondary 
 12.1   instruction; or (2) a newly constructed building addition or 
 12.2   additions used primarily for regular kindergarten, elementary, 
 12.3   or secondary instruction that contains more than 20 percent of 
 12.4   the square footage of the previously existing building. 
 12.5      (d) The total ~~levy~~ revenue under this subdivision for a 
 12.6   district for any year must not exceed $100 times the resident 
 12.7   pupil units for the fiscal year to which the levy is 
 12.8   attributable. 
 12.9      (e) For agreements for which a review and comment have been 
 12.10  submitted to the department of children, families, and learning 
 12.11  after April 1, 1998, the term "instructional purpose" as used in 
 12.12  this subdivision excludes expenditures on stadiums. 
 12.13     Sec. 9.  Minnesota Statutes 1998, section 126C.40, 
 12.14  subdivision 2, is amended to read: 
 12.15     Subd. 2.  [PRE-JULY 1990 LEASE PURCHASE, INSTALLMENT BUYS.] 
 12.16  A district may ~~annually levy~~ increase the amount of its 
 12.17  equalized facilities revenue needed to make payments required by 
 12.18  a lease purchase agreement, installment purchase agreement, or 
 12.19  other deferred payment agreement authorized by Minnesota 
 12.20  Statutes 1989 Supplement, section 465.71, if:  
 12.21     (1) the agreement was approved by the commissioner before 
 12.22  July 1, 1990, according to Minnesota Statutes 1989 Supplement, 
 12.23  section 275.125, subdivision 11d; or 
 12.24     (2) the district levied in 1989 for the payments. 
 12.25     Sec. 10.  Minnesota Statutes 1998, section 126C.40, 
 12.26  subdivision 3, is amended to read: 
 12.27     Subd. 3.  [COOPERATING DISTRICTS.] A district that has an 
 12.28  agreement according to section 123A.30 or 123A.32 may ~~levy~~ 
 12.29  increase its equalized facilities revenue under section 123B.53, 
 12.30  subdivision 5, for the repair costs, as approved by the 
 12.31  department of a building located in another district that is a 
 12.32  party to the agreement. 
 12.33     Sec. 11.  Minnesota Statutes 1998, section 126C.40, 
 12.34  subdivision 6, is amended to read: 
 12.35     Subd. 6.  [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 
 12.36  application to, and approval by, the commissioner in accordance 
 13.1   with the procedures and limits in subdivision 1, paragraphs (a) 
 13.2   and (b), a district, as defined in this subdivision, may: 
 13.3      (1) purchase real or personal property under an installment 
 13.4   contract or may lease real or personal property with an option 
 13.5   to purchase under a lease purchase agreement, by which 
 13.6   installment contract or lease purchase agreement title is kept 
 13.7   by the seller or vendor or assigned to a third party as security 
 13.8   for the purchase price, including interest, if any; and 
 13.9      (2) annually ~~levy~~ increase its equalized facilities revenue 
 13.10  under section 123B.53, subdivision 5, by the amounts necessary 
 13.11  to pay the district's obligations under the installment contract 
 13.12  or lease purchase agreement. 
 13.13     (b) The obligation created by the installment contract or 
 13.14  the lease purchase agreement must not be included in the 
 13.15  calculation of net debt for purposes of section 475.53, and does 
 13.16  not constitute debt under other law.  An election is not 
 13.17  required in connection with the execution of the installment 
 13.18  contract or the lease purchase agreement. 
 13.19     (c) The proceeds of the ~~levy~~ equalized facilities revenue 
 13.20  increase authorized by this subdivision must not be used to 
 13.21  acquire a facility to be primarily used for athletic or school 
 13.22  administration purposes. 
 13.23     (d) For the purposes of this subdivision, "district" means: 
 13.24     (1) a school district required to have a comprehensive plan 
 13.25  for the elimination of segregation whose plan has been 
 13.26  determined by the commissioner to be in compliance with the 
 13.27  state board of education rules relating to equality of 
 13.28  educational opportunity and school desegregation; or 
 13.29     (2) a school district that participates in a joint program 
 13.30  for interdistrict desegregation with a district defined in 
 13.31  clause (1) if the facility acquired under this subdivision is to 
 13.32  be primarily used for the joint program. 
 13.33     (e) Notwithstanding subdivision 1, the prohibition against 
 13.34  ~~a levy by~~ a district ~~to lease~~ receiving revenue for the purpose 
 13.35  of leasing or ~~rent~~ renting a district-owned building to itself 
 13.36  does not apply to ~~levies~~ revenues otherwise authorized by this 
 14.1   subdivision. 
 14.2      (f) For the purposes of this subdivision, any references in 
 14.3   subdivision 1 to building or land shall include personal 
 14.4   property. 
 14.5      Sec. 12.  [REPEALER.] 
 14.6      (a) Minnesota Statutes 1998, sections 123A.44; 123A.441; 
 14.7   123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 123B.57, 
 14.8   subdivisions 4, 5, and 7; 123B.63, subdivisions 1 and 2; 
 14.9   123B.64; 123B.66; 123B.67; 123B.68; and 123B.69, are repealed. 
 14.10     (b) Minnesota Statutes 1998, section 123B.58, is repealed. 
 14.11     Sec. 13.  [EFFECTIVE DATE.] 
 14.12     (a) Sections 1 to 11, and section 12, paragraph (a), are 
 14.13  effective the day following final enactment. 
 14.14     (b) Section 12, paragraph (b), is effective July 1, 2003.