1.1                          A bill for an act 
  1.2             relating to education; reducing the average per pupil 
  1.3             requirement for debt service equalization; amending 
  1.4             Minnesota Statutes 1998, section 123B.53, subdivision 
  1.5             2. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 123B.53, 
  1.8   subdivision 2, is amended to read: 
  1.9      Subd. 2.  [ELIGIBILITY.] (a) The following portions of a 
  1.10  district's debt service levy qualify for debt service 
  1.11  equalization: 
  1.12     (1) debt service for repayment of principal and interest on 
  1.13  bonds issued before July 2, 1992; 
  1.14     (2) debt service for bonds refinanced after July 1, 1992, 
  1.15  if the bond schedule has been approved by the commissioner and, 
  1.16  if necessary, adjusted to reflect a 20-year maturity schedule; 
  1.17  and 
  1.18     (3) debt service for bonds issued after July 1, 1992, for 
  1.19  construction projects that have received a positive review and 
  1.20  comment according to section 123B.71, if the commissioner has 
  1.21  determined that the district has met the criteria under section 
  1.22  126C.69, subdivision 3, and if the bond schedule has been 
  1.23  approved by the commissioner and, if necessary, adjusted to 
  1.24  reflect a 20-year maturity schedule.  
  1.25     (b) The criterion in section 126C.69, subdivision 3, 
  2.1   paragraph (a), clause (2), shall be considered to have been met 
  2.2   if the district in the fiscal year in which the bonds are 
  2.3   authorized at an election conducted under chapter 475: 
  2.4      (i) if grades 9 through 12 are to be served by the 
  2.5   facility, and an average of at least ~~66~~ 40 pupils per grade in 
  2.6   these grades are served; or 
  2.7      (ii) is eligible for elementary or secondary sparsity 
  2.8   revenue. 
  2.9      (c) The criterion in section 126C.69, subdivision 3, 
  2.10  paragraph (a), clause (2), shall also be considered to have been 
  2.11  met if the construction project under review serves students in 
  2.12  kindergarten to grade 8.  Only the debt service levy for that 
  2.13  portion of the facility serving students in prekindergarten to 
  2.14  grade 8, as determined by the commissioner, shall be eligible 
  2.15  for debt service equalization under this paragraph. 
  2.16     (d) The criterion described in section 126C.69, subdivision 
  2.17  3, paragraph (a), clause (9), does not apply to bonds authorized 
  2.18  by elections held before July 1, 1992. 
  2.19     (e) For the purpose of this subdivision the department 
  2.20  shall determine the eligibility for sparsity at the location of 
  2.21  the new facility, or the site of the new facility closest to the 
  2.22  nearest operating school if there is more than one new facility. 
  2.23     (f) Notwithstanding paragraphs (a) to (e), debt service for 
  2.24  repayment of principal and interest on bonds issued after July 
  2.25  1, 1997, does not qualify for debt service equalization aid 
  2.26  unless the primary purpose of the facility is to serve students 
  2.27  in kindergarten through grade 12.