1.1                          A bill for an act
  1.2             relating to taxation; requiring the state to impose a 
  1.3             future school facility charge; requiring revenue to be 
  1.4             held in trust; authorizing disbursal to local school 
  1.5             districts for school facility capital costs; proposing 
  1.6             coding for new law as Minnesota Statutes, chapter 281A.
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [281A.01] [SCHOOL FACILITY CHARGES.] 
  1.9      Subdivision 1.  [REVENUE DEPARTMENT.] The commissioner of 
  1.10  revenue shall administer the future school facilities fee 
  1.11  program. 
  1.12     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
  1.13  following terms have the meanings given them. 
  1.14     (1) "2020 MUSA" means the 2020 metropolitan urban service 
  1.15  area established in the local comprehensive plans that are 
  1.16  approved by the metropolitan council. 
  1.17     (2) "Qualifying area" means the land designated for urban 
  1.18  services in the 2020 MUSA but not that land included in the 
  1.19  metropolitan urban service area designated for urban services 
  1.20  contained in local comprehensive plans that were approved by the 
  1.21  metropolitan council on or before July 1, 1997. 
  1.22     Subd. 3.  [APPLICATION.] The future school facilities fee 
  1.23  applies to new residential construction in qualifying areas for 
  1.24  which residential zoning is approved after July 1, 1997. 
  1.25     Subd. 4.  [FUTURE SCHOOL FACILITY FEE AMOUNT.] A future 
  1.26  school facility fee of $1,000 per bedroom must be imposed 
  2.1   against each new residential unit constructed within the 
  2.2   qualifying area defined in subdivision 2.  The fee is payable to 
  2.3   the commissioner of revenue, and shall be due within 60 days 
  2.4   from the date the construction is substantially completed.  
  2.5      Subd. 5.  [EXEMPTION.] The future school facilities fee 
  2.6   does not apply to construction projects providing low-income 
  2.7   housing if the need for such housing has been identified in the 
  2.8   comprehensive plan of the municipality in which the residential 
  2.9   construction occurs. 
  2.10     Subd. 6.  [REVENUE RESERVED.] Fees collected by the 
  2.11  commissioner of revenue must be placed in a reserved account.  
  2.12  The commissioner may recover its costs associated with the 
  2.13  legal, administrative, and other expenses related to the future 
  2.14  school facilities fee.  The remainder must be placed in trust 
  2.15  and held for school facility construction projects that occur in 
  2.16  the attendance areas from which the fees were collected. 
  2.17     Subd. 7.  [DISTRIBUTION OF FEES TO SCHOOL DISTRICTS.] A 
  2.18  school district that is building a new school facility or making 
  2.19  capital improvements to a school building that is located within 
  2.20  the geographic region defined in subdivision 2 shall notify the 
  2.21  commissioner of revenue of its construction project.  The 
  2.22  commissioner shall transfer any revenue held in trust for a 
  2.23  school building project in that attendance area in the school 
  2.24  district to the school district. 
  2.25     Subd. 8.  [REVENUE USES.] Future school facilities fees 
  2.26  paid by the commissioner to a school district must be used only 
  2.27  for the costs associated with constructing a new school 
  2.28  facility, repaying the principal and interest on bonds issued 
  2.29  for the construction of a school facility, or capital 
  2.30  improvements to an existing school facility, located within that 
  2.31  attendance area. 
  2.32     Subd. 9.  [NOTICE; RECORDING.] A future school facility fee 
  2.33  constitutes a lien upon the property and must be recorded and a 
  2.34  purchaser of real property must be notified of any future school 
  2.35  facility fees due. 
  2.36     Sec. 2.  [EFFECTIVE DATE.] 
  3.1      Section 1 is effective July 1, 1997.