1.1 	A bill for an act
1.2 	relating to education finance; expanding eligibility for the cooperative secondary 
1.3 	facilities program; authorizing the issuance of state bonds;amending Minnesota 
1.4 	Statutes 2004, sections 123A.44; 123A.441; 123A.442; 123A.443.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 123A.44, is amended to read:
1.7 	123A.44 CITATION.
1.8 	Sections  123A.441 to  123A.446 may be cited as the "Cooperative Secondary
1.9 	Facilities Grant Act." 

1.10 	EFFECTIVE DATE. This section is effective the day following final enactment. 

1.11 	Sec. 2. Minnesota Statutes 2004, section 123A.441, is amended to read:
1.12 	123A.441 POLICY AND PURPOSE.
1.13 	Because of the rates of decline in school-aged population, population shifts and 
1.14 	economic changes that the state has experienced in recent years and anticipates in future 
1.15 	years, and because in some instances local districts have not, and will not be able to 
1.16 	provide the required construction funds through local property taxes, the purpose of the 
1.17 	cooperative secondary facilities grant program is to provide an incentive to encourage 
1.18 	cooperation in making available to all secondary students those educational programs, 
1.19 	services and facilities that are most efficiently and effectively provided by a cooperative 
1.20 	effort of several school districts. The policy and purpose of sections  123A.442 to  
1.21 	123A.446 is to use the credit of the state, to a limited degree, to provide grants to 
2.1 	cooperating groups of districts to improve and expand the educational opportunities and 
2.2 	facilities available to their secondary students. 

2.3 	EFFECTIVE DATE. This section is effective the day following final enactment. 

2.4 	Sec. 3. Minnesota Statutes 2004, section 123A.442, is amended to read:
2.5 	123A.442 APPROVAL AUTHORITY; APPLICATION FORMS.
2.6 		Subdivision 1.Approval by commissioner. To the extent money is available, the 
2.7 	commissioner may approve projects from applications submitted under section  123A.443. 
2.8 	The grant money must be used only to acquire, construct, remodel or improve the building 
2.9 	or site of a cooperative secondary facility under contracts to be entered into within 15 
2.10 	months after the date on which each grant is awarded. 
2.11 		Subd. 2.Cooperation and combination. Districts that have not already 
2.12 	consolidated and receive a cooperative secondary facilities grant after May 1, 1991, shall:
2.13 	(1) submit a consolidation plan as set forth in section  123A.36 123A.48 for approval 
2.14 	by the State Board of Education before December 31, 1999, or Department of Education 
2.15 	after December 30, 1999; and 
2.16 	(2) hold a referendum on the question of combination consolidation no later than 
2.17 	four years after a grant is awarded under subdivision 1.
2.18 	The districts are eligible for cooperation and combination consolidation revenue 
2.19 	under section  123A.39, subdivision 3 123A.485. 
2.20 		Subd. 3.Consolidated districts. A school district that has consolidated with 
2.21 	another school district since July 1, 1980, is eligible for a cooperative facilities grant.

2.22 	EFFECTIVE DATE. This section is effective the day following final enactment. 

2.23 	Sec. 4. Minnesota Statutes 2004, section 123A.443, is amended to read:
2.24 	123A.443 GRANT APPLICATION PROCESS.
2.25 		Subdivision 1.Qualification. Any group of districts or a consolidated district 
2.26 	that meets the criteria required under subdivision 2 may apply for an incentive grant for 
2.27 	construction of a new secondary facility or for remodeling and improving an existing 
2.28 	secondary facility. A grant for new construction must not exceed the lesser of $5,000,000
2.29 	$10,000,000 or 75 percent of the approved construction costs of a cooperative secondary
2.30 	education facility. A grant for remodeling and improving an existing facility must not 
2.31 	exceed $200,000 $1,000,000.
2.32 		Subd. 2.Review by commissioner. (a) A group of districts or a consolidated district 
2.33 	that submits an application for a grant must submit a proposal to the commissioner for 
3.1 	review and comment under section  123B.71. The commissioner shall prepare a review 
3.2 	and comment on the proposed facility by July 1 of an odd-numbered year, regardless of 
3.3 	the amount of the capital expenditure required to acquire, construct, remodel or improve 
3.4 	the secondary facility. The commissioner shall not approve an application for an incentive 
3.5 	grant for any secondary facility unless the facility receives a favorable review and 
3.6 	comment under section  123B.71 and the following criteria are met: 
3.7 	(1) the applicant is a consolidated district or a minimum of two or more districts, 
3.8 	with kindergarten to grade 12 enrollments in each district of no more than 1,200 pupils, 
3.9 	enter that have entered into a joint powers agreement;
3.10 	(2) for a group of districts, a joint powers board representing all participating 
3.11 	districts is established under section  471.59 to govern the cooperative secondary facility; 
3.12 	(3) the planned secondary facility will result in the joint powers district meeting the 
3.13 	requirements of Minnesota Rules, parts 3500.2010 and 3500.2110;
3.14 	(4) at least 198 pupils would be served in grades 10 to 12, 264 pupils would be 
3.15 	served in grades 9 to 12, or 396 pupils would be served in grades 7 to 12;
3.16 	(5) for a group of districts, no more than one superintendent is employed by the joint 
3.17 	powers board as a result of the cooperative secondary facility agreement;
3.18 	(6) (4)  a statement of need is submitted, that may include reasons why the current 
3.19 	secondary facilities are inadequate, unsafe or inaccessible to the handicapped disabled;
3.20 	(7) (5)  an educational plan is prepared, that includes input from both community and 
3.21 	professional staff;
3.22 	(8) (6) for a group of districts, a combined seniority list for all participating districts 
3.23 	is developed by the joint powers board;
3.24 	(9) (7) for a group of districts, an education program is developed that provides for 
3.25 	more learning opportunities and course offerings, including the offering of advanced 
3.26 	placement courses, for students than is currently available in any single member district;
3.27 	(10) (8)  a plan is developed for providing instruction of any resident students in 
3.28 	other districts when distance to the secondary education facility makes attendance at the 
3.29 	facility unreasonably difficult or impractical; and
3.30 	(11) (9) for a secondary facility, the joint powers board established under clause (2) 
3.31 	discusses with technical colleges located in the area how vocational education space in 
3.32 	the cooperative secondary facility could be jointly used for secondary and postsecondary 
3.33 	purposes.
3.34 	(b) To the extent possible, the joint powers board is encouraged to provide for 
3.35 	severance pay or for early retirement incentives under section  122A.48, for any teacher 
4.1 	or administrator, as defined under section  122A.40, subdivision 1, who is placed on 
4.2 	unrequested leave as a result of the cooperative secondary facility agreement. 
4.3 	(c) For the purpose of paragraph (a), clause (8) (6), each district must be considered 
4.4 	to have started school each year on the same date.
4.5 	(d) The districts may develop a plan that provides for the location of social service, 
4.6 	health, and other programs serving pupils and community residents within the cooperative 
4.7 	secondary facility. The commissioner shall consider this plan when preparing a review 
4.8 	and comment on the proposed facility.
4.9 	(e) The districts must schedule and conduct a meeting on library services. The 
4.10 	school districts, in cooperation with the regional public library system and its appropriate 
4.11 	member libraries, must discuss the possibility of including jointly operated library services 
4.12 	at the cooperative secondary facility.
4.13 	(f) The board of a district that has reorganized under section  123A.37 or  123A.48
4.14 	and that is applying for a grant for remodeling or improving an existing facility may act in 
4.15 	the place of a joint powers board to meet the criteria of this subdivision. 
4.16 		Subd. 3.Reorganizing districts. A district that is a member of a joint powers 
4.17 	board established under subdivision 2 and that is planning to reorganize under section  
4.18 	123A.45,  123A.46, or  123A.48 must notify the joint powers board one year in advance of 
4.19 	the effective date of the reorganization. Notwithstanding section  471.59 or any other law 
4.20 	to the contrary, the board of a district that reorganizes under section  123A.45,  123A.46, or  
4.21 	123A.48 may appoint representatives to the joint powers board who will serve on the joint 
4.22 	powers board for two years after the effective date of the reorganization if authorized in 
4.23 	the agreement establishing the joint powers board to govern the cooperative secondary
4.24 	facility. These representatives shall have the same powers as representatives of any other 
4.25 	school district under the joint powers agreement. 
4.26 		Subd. 4.District procedures. A joint powers board of a secondary district 
4.27 	established under subdivision 2 or a school board of a reorganized district that intends 
4.28 	to apply for a grant must adopt a resolution stating the proposed costs of the project, 
4.29 	the purpose for which the costs are to be incurred, and an estimate of the dates when 
4.30 	the facilities for which the grant is requested will be contracted for and completed. 
4.31 	Applications for the state grants must be accompanied by (a) a copy of the resolution, (b) 
4.32 	a certificate by the clerk and treasurer of the joint powers board showing the current 
4.33 	outstanding indebtedness of each member district, and (c) a certificate by the county 
4.34 	auditor of each county in which a portion of the joint powers district lies showing the 
4.35 	information in the auditor's official records that is required to be used in computing the 
4.36 	debt limit of the district under section  475.53, subdivision 4. The clerk's and treasurer's 
5.1 	certificate must show, as to each outstanding bond issue of each member district, the 
5.2 	amount originally issued, the purpose for which issued, the date of issue, the amount 
5.3 	remaining unpaid as of the date of the resolution, and the interest rates and due dates 
5.4 	and amounts of principal thereon. Applications and necessary data must be in the 
5.5 	form prescribed by the commissioner and the rules of the State Board of Education 
5.6 	before December 31, 1999, and after December 30, 1999, in the form prescribed by the 
5.7 	commissioner. Applications must be received by the commissioner by September 1 of an 
5.8 	odd-numbered year. When an application is received, the commissioner shall obtain from 
5.9 	the commissioner of revenue, and from the Public Utilities Commission when required, 
5.10 	the information in their official records that is required to be used in computing the debt 
5.11 	limit of the joint powers district under section  475.53, subdivision 4. 
5.12 		Subd. 5.Award of grants. By November 1 of the odd-numbered year, the 
5.13 	commissioner shall examine and consider all applications for grants, and if any district is 
5.14 	found not qualified, the commissioner shall promptly notify that board.
5.15 	A grant award is subject to verification by the district as specified in subdivision 
5.16 	8. A grant award for a new facility must not be made until the site of the secondary
5.17 	facility has been determined. A grant award to remodel or improve an existing facility 
5.18 	must not be made until the districts have reorganized. If the total amount of the approved 
5.19 	applications exceeds the amount that is or can be made available, the commissioner 
5.20 	shall allot the available amount equally between the approved applicant districts. The 
5.21 	commissioner shall promptly certify to each qualified district the amount, if any, of the 
5.22 	grant awarded to it.
5.23 		Subd. 6.Collocation grant. A group of districts that receives a grant for a new 
5.24 	facility under subdivision 4 is also eligible to receive an additional grant in the amount of 
5.25 	$1,000,000. To receive the additional grant, the group of districts must develop a plan 
5.26 	under subdivision 2, paragraph (d), that provides for the location of a significant number 
5.27 	of noneducational student and community service programs within the cooperative 
5.28 	secondary facility.
5.29 		Subd. 7.Referendum; bond issue. Within 180 days after being awarded a grant 
5.30 	for a new facility under subdivision 5, the joint powers board must submit the question 
5.31 	of authorizing the borrowing of funds for the secondary facility to the voters of the joint 
5.32 	powers district at a special election, which may be held in conjunction with the annual 
5.33 	election of the school board members of the member districts. The question submitted 
5.34 	must state the total amount of funding needed from all sources. A majority of those voting 
5.35 	in the affirmative on the question is sufficient to authorize the joint powers board to accept 
5.36 	the grant and to issue the bonds on public sale in accordance with chapter 475. The clerk 
6.1 	of the joint powers board must certify the vote of the bond election to the commissioner. 
6.2 	If the question is approved by the voters, the commissioner shall notify the approved 
6.3 	applicant districts that the grant amount certified under subdivision 5 is available and 
6.4 	appropriated for payment under this subdivision. If a majority of those voting on the 
6.5 	question do not vote in the affirmative, the grant must be canceled.
6.6 		Subd. 8.Contract. Each grant must be evidenced by a contract between the board 
6.7 	and the state acting through the commissioner. The contract obligates the state to pay to 
6.8 	the board an amount computed according to subdivision 5, and according to a schedule, 
6.9 	and terms and conditions acceptable to the commissioner of finance.
6.10 		Subd. 9.Consolidation. A group of districts that operates a cooperative secondary
6.11 	facility that was acquired, constructed, remodeled, or improved under this section and 
6.12 	implements consolidation proceedings according to section  123A.48, may propose a 
6.13 	temporary school board structure in the petition or resolution required under section  
6.14 	123A.48, subdivision 2. The districts may propose the number of existing school board 
6.15 	members of each district to become members of the board of the consolidated district 
6.16 	and a method to gradually reduce the membership to six or seven. The proposal must 
6.17 	be approved, disapproved, or modified by the state board of education commissioner. 
6.18 	The election requirements of section  123A.48, subdivision 20, do not apply to a 
6.19 	proposal approved by the state board. Elections conducted after the effective date of the 
6.20 	consolidation are subject to the Minnesota Election Law. 

6.21 	EFFECTIVE DATE. This section is effective the day following final enactment. 

6.22 	Sec. 5. STATE BOND AUTHORIZATION.
 6.23 	To provide money for a cooperative facilities grant to the Lake Benton and Ivanhoe 
6.24 	school districts, and any other district that chooses to join, the commissioner of finance, 
6.25 	upon the request of the commissioner of education, shall issue and sell bonds of the state up 
6.26 	to the amount of $10,000,000 in the manner, upon the terms and with the effect prescribed 
6.27 	by sections 16A.631 to 16A.675 and the Minnesota Constitution, article XI, sections 4 to 7.

6.28 	EFFECTIVE DATE. This section is effective the day following final enactment. 

6.29 	Sec. 6. IVANHOE AND LAKE BENTON.
 6.30 	Notwithstanding the timelines in section 123A.443, Independent School Districts 
6.31 	Nos. 403, Ivanhoe, and 404, Lake Benton, and any other district that chooses to join, may 
6.32 	form a joint powers agreement and submit an application for a cooperative facilities grant 
7.1 	to the commissioner of education. The commissioner must either approve or reject the 
7.2 	application within 60 days of its receipt.

7.3 	EFFECTIVE DATE. This section is effective the day following final enactment.