1.1                          A bill for an act 
  1.2             relating to education finance; authorizing special 
  1.3             education revenue for a metropolitan magnet school; 
  1.4             making metropolitan magnet schools eligible for 
  1.5             certain levies; amending Minnesota Statutes 2002, 
  1.6             sections 123B.57, subdivision 1; 124D.88, by adding a 
  1.7             subdivision; 126C.40, subdivision 1; 126C.43, 
  1.8             subdivisions 2, 3. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2002, section 123B.57, 
  1.11  subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] (a) To receive 
  1.13  health and safety revenue for any fiscal year a district must 
  1.14  submit to the commissioner an application for aid and levy by 
  1.15  the date determined by the commissioner.  The application may be 
  1.16  for hazardous substance removal, fire and life safety code 
  1.17  repairs, labor and industry regulated facility and equipment 
  1.18  violations, and health, safety, and environmental management, 
  1.19  including indoor air quality management.  The application must 
  1.20  include a health and safety program adopted by the school 
  1.21  district board.  The program must include the estimated cost, 
  1.22  per building, of the program by fiscal year.  
  1.23     (b) Upon approval through the adoption of a resolution by 
  1.24  each of an intermediate district's member school district boards 
  1.25  and the approval of the department of children, families, and 
  1.26  learning, a school district may include its proportionate share 
  1.27  of the costs of health and safety projects for an intermediate 
  2.1   district in its application. 
  2.2      (c) Upon approval through the adoption of a resolution by 
  2.3   each of a metropolitan magnet school's member school district 
  2.4   boards and the approval of the department of children, families, 
  2.5   and learning, a school district may include its proportionate 
  2.6   share of the costs of health and safety projects for a 
  2.7   metropolitan magnet school in its application. 
  2.8      <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
  2.9   payable in 2004. 
  2.10     Sec. 2.  Minnesota Statutes 2002, section 124D.88, is 
  2.11  amended by adding a subdivision to read: 
  2.12     Subd. 5.  [SPECIAL EDUCATION FUNDING.] Notwithstanding 
  2.13  section 125A.75, subdivision 7, or 125A.76, subdivision 7, upon 
  2.14  approval of each school board that is a member of a joint powers 
  2.15  agreement operating a metropolitan magnet school, the magnet 
  2.16  school is eligible for direct receipt of special education aid 
  2.17  paid to the metropolitan magnet school according to section 
  2.18  125A.76 as though it were a school district.  The metropolitan 
  2.19  magnet school may charge tuition to the district of residence as 
  2.20  provided in section 125A.11. 
  2.21     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.22  fiscal year 2005. 
  2.23     Sec. 3.  Minnesota Statutes 2002, section 126C.40, 
  2.24  subdivision 1, is amended to read: 
  2.25     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When an 
  2.26  independent or a special school district or a group of 
  2.27  independent or special school districts finds it economically 
  2.28  advantageous to rent or lease a building or land for any 
  2.29  instructional purposes or for school storage or furniture 
  2.30  repair, and it determines that the operating capital revenue 
  2.31  authorized under section 126C.10, subdivision 13, is 
  2.32  insufficient for this purpose, it may apply to the commissioner 
  2.33  for permission to make an additional capital expenditure levy 
  2.34  for this purpose.  An application for permission to levy under 
  2.35  this subdivision must contain financial justification for the 
  2.36  proposed levy, the terms and conditions of the proposed lease, 
  3.1   and a description of the space to be leased and its proposed use.
  3.2      (b) The criteria for approval of applications to levy under 
  3.3   this subdivision must include:  the reasonableness of the price, 
  3.4   the appropriateness of the space to the proposed activity, the 
  3.5   feasibility of transporting pupils to the leased building or 
  3.6   land, conformity of the lease to the laws and rules of the state 
  3.7   of Minnesota, and the appropriateness of the proposed lease to 
  3.8   the space needs and the financial condition of the district.  
  3.9   The commissioner must not authorize a levy under this 
  3.10  subdivision in an amount greater than the cost to the district 
  3.11  of renting or leasing a building or land for approved purposes.  
  3.12  The proceeds of this levy must not be used for custodial or 
  3.13  other maintenance services.  A district may not levy under this 
  3.14  subdivision for the purpose of leasing or renting a 
  3.15  district-owned building or site to itself. 
  3.16     (c) For agreements finalized after July 1, 1997, a district 
  3.17  may not levy under this subdivision for the purpose of leasing:  
  3.18  (1) a newly constructed building used primarily for regular 
  3.19  kindergarten, elementary, or secondary instruction; or (2) a 
  3.20  newly constructed building addition or additions used primarily 
  3.21  for regular kindergarten, elementary, or secondary instruction 
  3.22  that contains more than 20 percent of the square footage of the 
  3.23  previously existing building. 
  3.24     (d) Notwithstanding paragraph (b), a district may levy 
  3.25  under this subdivision for the purpose of leasing or renting a 
  3.26  district-owned building or site to itself only if the amount is 
  3.27  needed by the district to make payments required by a lease 
  3.28  purchase agreement, installment purchase agreement, or other 
  3.29  deferred payments agreement authorized by law, and the levy 
  3.30  meets the requirements of paragraph (c).  A levy authorized for 
  3.31  a district by the commissioner under this paragraph may be in 
  3.32  the amount needed by the district to make payments required by a 
  3.33  lease purchase agreement, installment purchase agreement, or 
  3.34  other deferred payments agreement authorized by law, provided 
  3.35  that any agreement include a provision giving the school 
  3.36  districts the right to terminate the agreement annually without 
  4.1   penalty. 
  4.2      (e) The total levy under this subdivision for a district 
  4.3   for any year must not exceed $100 times the resident pupil units 
  4.4   for the fiscal year to which the levy is attributable. 
  4.5      (f) For agreements for which a review and comment have been 
  4.6   submitted to the department of children, families, and learning 
  4.7   after April 1, 1998, the term "instructional purpose" as used in 
  4.8   this subdivision excludes expenditures on stadiums. 
  4.9      (g) The commissioner of children, families, and learning 
  4.10  may authorize a school district to exceed the limit in paragraph 
  4.11  (e) if the school district petitions the commissioner for 
  4.12  approval.  The commissioner shall grant approval to a school 
  4.13  district to exceed the limit in paragraph (e) for not more than 
  4.14  five years if the district meets the following criteria: 
  4.15     (1) the school district has been experiencing pupil 
  4.16  enrollment growth in the preceding five years; 
  4.17     (2) the purpose of the increased levy is in the long-term 
  4.18  public interest; 
  4.19     (3) the purpose of the increased levy promotes colocation 
  4.20  of government services; and 
  4.21     (4) the purpose of the increased levy is in the long-term 
  4.22  interest of the district by avoiding over construction of school 
  4.23  facilities. 
  4.24     (h) A school district that is a member of an intermediate 
  4.25  school district may include in its authority under this section 
  4.26  the costs associated with leases of administrative and classroom 
  4.27  space for intermediate school district programs.  This authority 
  4.28  must not exceed $25 times the adjusted marginal cost pupil units 
  4.29  of the member districts.  This authority is in addition to any 
  4.30  other authority authorized under this section. 
  4.31     (i) In addition to the allowable capital levies in 
  4.32  paragraph (a), a district that is a member of the "Technology 
  4.33  and Information Education Systems" data processing joint board, 
  4.34  that finds it economically advantageous to enter into a lease 
  4.35  purchase agreement for a building for a group of school 
  4.36  districts or special school districts for staff development 
  5.1   purposes, may levy for its portion of lease costs attributed to 
  5.2   the district within the total levy limit in paragraph (e). 
  5.3      (j) A school district that is a member of a joint powers 
  5.4   agreement formed for the purpose of operating a metropolitan 
  5.5   magnet school may include in its authority under this section 
  5.6   the costs associated with leases of administrative and classroom 
  5.7   space for metropolitan magnet school programs.  This authority 
  5.8   must not exceed $25 times the adjusted marginal cost pupil units 
  5.9   of the member districts.  This authority is in addition to any 
  5.10  other authority authorized under this section. 
  5.11     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
  5.12  payable in 2004. 
  5.13     Sec. 4.  Minnesota Statutes 2002, section 126C.43, 
  5.14  subdivision 2, is amended to read: 
  5.15     Subd. 2.  [PAYMENT TO UNEMPLOYMENT INSURANCE PROGRAM TRUST 
  5.16  FUND BY STATE AND POLITICAL SUBDIVISIONS.] (a) A district may 
  5.17  levy the amounts necessary to pay the district's obligations 
  5.18  under section 268.052, subdivision 1, and the amounts necessary 
  5.19  to pay for job placement services offered to employees who may 
  5.20  become eligible for benefits pursuant to section 268.085 for the 
  5.21  fiscal year the levy is certified. 
  5.22     (b) A school district that is a member of a joint powers 
  5.23  agreement formed for the purpose of operating a metropolitan 
  5.24  magnet school may include in its levy authority under this 
  5.25  section the proportionate share of the metropolitan magnet 
  5.26  school's costs under paragraph (a). 
  5.27     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
  5.28  payable in 2004. 
  5.29     Sec. 5.  Minnesota Statutes 2002, section 126C.43, 
  5.30  subdivision 3, is amended to read: 
  5.31     Subd. 3.  [TAX LEVY FOR JUDGMENT.] (a) A district may levy 
  5.32  the amounts necessary to pay judgments against the district 
  5.33  under section 123B.25 that became final after the date the 
  5.34  district certified its proposed levy in the previous year.  With 
  5.35  the approval of the commissioner, a district may spread this 
  5.36  levy over a period not to exceed three years.  
  6.1      (b) Upon approval through the adoption of a resolution by 
  6.2   each of an intermediate district's member school district 
  6.3   boards, a member school district may include its proportionate 
  6.4   share of the costs of a judgment against an intermediate school 
  6.5   district that became final under section 123B.25 after the date 
  6.6   that the earliest member school district certified its proposed 
  6.7   levy in the previous year.  With the approval of the 
  6.8   commissioner, an intermediate school district member school 
  6.9   district may spread this levy over a period not to exceed three 
  6.10  years. 
  6.11     (c) Upon approval through the adoption of a resolution by 
  6.12  each of a metropolitan magnet school district's member school 
  6.13  boards, a member school district may include its proportionate 
  6.14  share of the costs of a judgment against a metropolitan magnet 
  6.15  school that became final under section 123B.25 after the date 
  6.16  that the earliest member school district certified its proposed 
  6.17  levy in the previous year.  With the approval of the 
  6.18  commissioner, a metropolitan magnet school member school 
  6.19  district may spread this levy over a period not to exceed three 
  6.20  years. 
  6.21     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
  6.22  payable in 2004.