1.1                          A bill for an act 
  1.2             relating to education finance; allowing school boards 
  1.3             to elect to levy debt service against referendum 
  1.4             market value; amending Minnesota Statutes 2002, 
  1.5             sections 123B.53, by adding a subdivision; 123B.55; 
  1.6             123B.71, subdivision 9; Minnesota Statutes 2003 
  1.7             Supplement, section 123B.53, subdivision 4. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 123B.53, is 
  1.10  amended by adding a subdivision to read: 
  1.11     Subd. 1a.  [DEBT SERVICE LEVIES; CHOICE OF TAX BASE.] A 
  1.12  school board may by resolution elect to levy the debt service 
  1.13  for a bond issued after July 1, 2004, against the referendum 
  1.14  market value of the district, as defined under section 126C.01, 
  1.15  subdivision 3, rather than the net tax capacity of the 
  1.16  district.  A resolution to levy against referendum market value 
  1.17  must be passed at an open meeting of the board, at least 60 days 
  1.18  prior to the referendum election. 
  1.19     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  1.20  following final enactment.  
  1.21     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  1.22  123B.53, subdivision 4, is amended to read: 
  1.23     Subd. 4.  [DEBT SERVICE EQUALIZATION REVENUE.] (a) The debt 
  1.24  service equalization revenue of a district equals the sum of the 
  1.25  first tier debt service equalization revenue and the second tier 
  1.26  debt service equalization revenue. 
  2.1      (b) The first tier debt service equalization revenue of a 
  2.2   district equals the greater of zero or the eligible debt service 
  2.3   revenue minus the amount raised by a levy of 15 percent times 
  2.4   the adjusted net tax capacity of the district minus the second 
  2.5   tier debt service equalization revenue of the district. 
  2.6      (c) The second tier debt service equalization revenue of a 
  2.7   district equals the greater of zero or the eligible debt service 
  2.8   revenue, excluding alternative facilities levies under section 
  2.9   123B.59, subdivision 5, minus the amount raised by a levy of 25 
  2.10  percent times the adjusted net tax capacity of the district. 
  2.11     (d) Debt service equalization revenue is determined as 
  2.12  provided under this subdivision regardless of whether the debt 
  2.13  service is being levied against net tax capacity or referendum 
  2.14  market value. 
  2.15     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
  2.16     Sec. 3.  Minnesota Statutes 2002, section 123B.55, is 
  2.17  amended to read: 
  2.18     123B.55 [DEBT SERVICE LEVY.] 
  2.19     Subdivision 1.  [LEVY AMOUNT.] A district may levy the 
  2.20  amounts necessary to make payments for bonds issued and for 
  2.21  interest on them, including the bonds and interest on them, 
  2.22  issued as authorized by Minnesota Statutes 1974, section 
  2.23  275.125, subdivision 3, clause (7)(C); and the amounts necessary 
  2.24  for repayment of debt service loans and capital loans, minus the 
  2.25  amount of debt service equalization revenue of the district. 
  2.26     Subd. 2.  [AID APPORTIONMENT.] A district's debt service 
  2.27  equalization aid shall be apportioned between the next tax 
  2.28  capacity debt service levy and the referendum market value debt 
  2.29  service levy in the same proportions as eligible debt service 
  2.30  revenues resulting from bonds issued against net tax capacity 
  2.31  are to eligible debt service revenues resulting from bonds 
  2.32  issued against referendum market value. 
  2.33     Subd. 3.  [NET TAX CAPACITY DEBT SERVICE LEVY.] The levy 
  2.34  amount determined under subdivision 1, plus the eligible debt 
  2.35  service revenues resulting from bonds issued against net tax 
  2.36  capacity, minus the debt service equalization aid apportioned to 
  3.1   the net tax capacity debt service levy, must be levied against 
  3.2   the net tax capacity of the district as determined under section 
  3.3   273.13 and must be included with the other net tax capacity 
  3.4   levies certified to the county auditor under section 275.07. 
  3.5      Subd. 4.  [REFERENDUM MARKET VALUE DEBT SERVICE LEVY.] The 
  3.6   eligible debt service revenues resulting from bonds issued 
  3.7   against referendum market value, minus the debt service 
  3.8   equalization aid apportioned to the referendum market value debt 
  3.9   service levy, must be levied against the referendum market value 
  3.10  of the district as defined in section 126C.01, subdivision 3, 
  3.11  and must be separately certified to the county auditor under 
  3.12  section 275.07. 
  3.13     <b>[EFFECTIVE DATE.]</b> This section is effective beginning with 
  3.14  taxes payable in 2005. 
  3.15     Sec. 4.  Minnesota Statutes 2002, section 123B.71, 
  3.16  subdivision 9, is amended to read: 
  3.17     Subd. 9.  [INFORMATION REQUIRED.] A school board proposing 
  3.18  to construct a facility described in subdivision 8 shall submit 
  3.19  to the commissioner a proposal containing information including 
  3.20  at least the following: 
  3.21     (1) the geographic area and population to be served, 
  3.22  preschool through grade 12 student enrollments for the past five 
  3.23  years, and student enrollment projections for the next five 
  3.24  years; 
  3.25     (2) a list of existing facilities by year constructed, 
  3.26  their uses, and an assessment of the extent to which alternate 
  3.27  facilities are available within the school district boundaries 
  3.28  and in adjacent school districts; 
  3.29     (3) a list of the specific deficiencies of the facility 
  3.30  that demonstrate the need for a new or renovated facility to be 
  3.31  provided, and a list of the specific benefits that the new or 
  3.32  renovated facility will provide to the students, teachers, and 
  3.33  community users served by the facility; 
  3.34     (4) the relationship of the project to any priorities 
  3.35  established by the school district, educational cooperatives 
  3.36  that provide support services, or other public bodies in the 
  4.1   service area; 
  4.2      (5) a specification of how the project will increase 
  4.3   community use of the facility and whether and how the project 
  4.4   will increase collaboration with other governmental or nonprofit 
  4.5   entities; 
  4.6      (6) a description of the project, including the 
  4.7   specification of site and outdoor space acreage and square 
  4.8   footage allocations for classrooms, laboratories, and support 
  4.9   spaces; estimated expenditures for the major portions of the 
  4.10  project; and the dates the project will begin and be completed; 
  4.11     (7) a specification of the source of financing the project; 
  4.12  the scheduled date for a bond issue or school board action; a 
  4.13  schedule of payments, including debt service equalization aid; 
  4.14  whether the debt service will be levied against net tax capacity 
  4.15  or referendum market value; and the effect of a bond issue on 
  4.16  local property taxes by the property class and valuation; 
  4.17     (8) an analysis of how the proposed new or remodeled 
  4.18  facility will affect school district operational or 
  4.19  administrative staffing costs, and how the district's operating 
  4.20  budget will cover any increased operational or administrative 
  4.21  staffing costs; 
  4.22     (9) a description of the consultation with local or state 
  4.23  road and transportation officials on school site access and 
  4.24  safety issues, and the ways that the project will address those 
  4.25  issues; 
  4.26     (10) a description of how indoor air quality issues have 
  4.27  been considered and a certification that the architects and 
  4.28  engineers designing the facility will have professional 
  4.29  liability insurance; 
  4.30     (11) as required under section 123B.72, for buildings 
  4.31  coming into service after July 1, 2002, a certification that the 
  4.32  plans and designs for the extensively renovated or new 
  4.33  facility's heating, ventilation, and air conditioning systems 
  4.34  will meet or exceed code standards; will provide for the 
  4.35  monitoring of outdoor airflow and total airflow of ventilation 
  4.36  systems; and will provide an indoor air quality filtration 
  5.1   system that meets ASHRAE standard 52.1; 
  5.2      (12) a specification of any desegregation requirements that 
  5.3   cannot be met by any other reasonable means; and 
  5.4      (13) a specification, if applicable, of how the facility 
  5.5   will utilize environmentally sustainable school facility design 
  5.6   concepts. 
  5.7      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004.