1.1 	A bill for an act
1.2 	relating to education; modifying district requirements
1.3 	for health and safety revenue; amending Minnesota
1.4 	Statutes 2004, section 123B.57, subdivisions 1, 2, 6,
1.5 	8, by adding a subdivision.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 123B.57,
1.8 	subdivision 1, is amended to read:
1.9 		Subdivision 1.Health and safety program budget.  (a) To
1.10 	receive health and safety revenue for any fiscal year a district
1.11 	must submit to the commissioner an application for aid and levy
1.12 	by the date determined by the commissioner. The application may
1.13 	be for hazardous substance removal, fire and life safety code
1.14 	repairs, labor and industry regulated facility and equipment
1.15 	violations, and health, safety, and environmental management,
1.16 	including indoor air quality management.The application must
1.17 	include a health and safety program budget adopted by the school
1.18 	district board.  The program budget must include the estimated
1.19 	cost, per building,of the program by fiscal year.using the
1.20 	following categories:
1.21 	(1) physical hazards;
1.22 	(2) hazardous substances;
1.23 	(3) environmental, health and safety management;
1.24 	(4) asbestos;
1.25 	(5) fire and life safety; and 
2.1 	(6) indoor air quality.
2.2 	(b) The health and safety budget may include contingency
2.3 	amounts determined by the local school board for each Uniform
2.4 	Financial Accounting and Reporting Standards project category.
2.5 	Contingency amounts shall be converted to qualifying projects by
2.6 	the date determined by the commissioner or the approval shall be
2.7 	rescinded.
2.8 	(c) Health and safety projects with an estimated cost of
2.9 	$10,000 or more per site shall be itemized within the health and
2.10 	safety budget and include the name of the facility.  Health and
2.11 	safety projects with an estimated cost of less than $10,000 per
2.12 	site, including multisite or districtwide projects where the
2.13 	total cost could exceed $10,000, may be reported as combined
2.14 	projects.
2.15 	(b) (d) Upon approval through the adoption of a resolution
2.16 	by each of an intermediate district's member school district
2.17 	boards and the approval of the Department of Education, a school
2.18 	district may include its proportionate share of the costs of
2.19 	health and safety projects for an intermediate district in its
2.20 	application.
2.21 	(c) (e) Health and safety projects with an estimated cost
2.22 	of $500,000 or more per site, approved after February 1, 2003,
2.23 	are not eligible for health and safety revenue.  Health and
2.24 	safety projects with an estimated cost of $500,000 or more per
2.25 	site, approved after February 1, 2003, that meet all other
2.26 	requirements for health and safety funding, are eligible for
2.27 	alternative facilities bonding and levy revenue according to
2.28 	section 123B.59.  A school board shall not separate portions of
2.29 	a single project into components to qualify for health and
2.30 	safety revenue, and shall not combine unrelated projects into a
2.31 	single project to qualify for alternative facilities bonding and
2.32 	levy revenue.

2.33 	Sec. 2. Minnesota Statutes 2004, section 123B.57,
2.34 	subdivision 2, is amended to read:
2.35 		Subd. 2.contents of health and safety program. (a) To
2.36 	qualify for health and safety revenue,a district must adopt a
3.1 	health and safety program.  The program must include written 
3.2 	plans, where applicable,for hazardous substance removal, fire
3.3 	and life safety code repairs, regulated facility and equipment
3.4 	violations, and compliance with applicable health, safety, and
3.5 	environmental management, including a plan to monitor and
3.6 	improve indoor air quality management. Evidence of program
3.7 	adoption by the school board is required for levy approval.
3.8 	(b) Written plans for environmental, health, and safety
3.9 	compliance must be made to the local authority having
3.10 	jurisdiction for review.  Approval of health and safety funding
3.11 	by the commissioner shall not be contingent on compliance
3.12 	status.  The commissioner may provide management assistance, as
3.13 	described in subdivision 8, but will not be responsible for the
3.14 	identification of hazards, choice of control options, evaluation
3.15 	of written plans, or district compliance with environmental,
3.16 	health, and safety regulations.
3.17 	(a) A hazardous substance plan must contain provisions for
3.18 	the removal or encapsulation of asbestos from school buildings
3.19 	or property, asbestos-related repairs, cleanup and disposal of
3.20 	polychlorinated biphenyls found in school buildings or property,
3.21 	and cleanup, removal, disposal, and repairs related to storing
3.22 	heating fuel or transportation fuels such as alcohol, gasoline,
3.23 	fuel, oil, and special fuel, as defined in section 296A.01.  If
3.24 	a district has already developed a plan for the removal or
3.25 	encapsulation of asbestos as required by the federal Asbestos
3.26 	Hazard Emergency Response Act of 1986, the district may use a
3.27 	summary of that plan, which includes a description and schedule
3.28 	of response actions, for purposes of this section.  The plan
3.29 	must also contain provisions to make modifications to existing
3.30 	facilities and equipment necessary to limit personal exposure to
3.31 	hazardous substances, as regulated by the federal Occupational
3.32 	Safety and Health Administration under Code of Federal
3.33 	Regulations, title 29, part 1910, subpart Z; or is determined by
3.34 	the commissioner to present a significant risk to district staff
3.35 	or student health and safety as a result of foreseeable use,
3.36 	handling, accidental spill, exposure, or contamination.
4.1 	(b) A fire and life safety plan must contain a description
4.2 	of the current fire and life safety code violations, a plan for
4.3 	the removal or repair of the fire and life safety hazard, and a
4.4 	description of safety preparation and awareness procedures to be
4.5 	followed until the hazard is fully corrected.
4.6 	(c) A facilities and equipment violation plan must contain
4.7 	provisions to correct health and safety hazards as provided in
4.8 	Department of Labor and Industry standards pursuant to section
4.9 	182.655.
4.10 	(d) A health, safety, and environmental management plan
4.11 	must contain a description of training, record keeping, hazard
4.12 	assessment, and program management as defined in section 123B.56.
4.13 	(e) A plan to test for and mitigate radon produced hazards.
4.14 	(f) A plan to monitor and improve indoor air quality.

4.15 	Sec. 3. Minnesota Statutes 2004, section 123B.57,
4.16 	subdivision 6, is amended to read:
4.17 		Subd. 6.Uses of health and safety revenue.  (a) Health
4.18 	and safety revenue may be used only for any allowable approved
4.19 	expenditures necessary to correct fire and life safety hazards,
4.20 	or for the removal or encapsulation of asbestos from school
4.21 	buildings or property owned or being acquired by the district,
4.22 	asbestos-related repairs, cleanup and disposal of
4.23 	polychlorinated biphenyls found in school buildings or property
4.24 	owned or being acquired by the district, or the cleanup,
4.25 	removal, disposal, and repairs related to storing heating fuel
4.26 	or transportation fuels such as alcohol, gasoline, fuel oil, and
4.27 	special fuel, as defined in section 296A.01, Minnesota
4.28 	occupational safety and health administration regulated facility
4.29 	and equipment hazards, indoor air quality mold abatement,
4.30 	upgrades or replacement of mechanical ventilation systems to
4.31 	meet American Society of Heating, Refrigerating and Air
4.32 	Conditioning Engineers standards and State Mechanical Code,
4.33 	Department of Health Food Code and swimming pool hazards
4.34 	excluding depth correction, and health, safety, and
4.35 	environmental management.  Health and safety revenue must not be
4.36 	used to finance a lease purchase agreement, installment purchase
5.1 	agreement, or other deferred payments agreement.  Health and
5.2 	safety revenue must not be used for the construction of new
5.3 	facilities or the purchase of portable classrooms, for interest
5.4 	or other financing expenses, or for energy efficiency projects
5.5 	under section 123B.65.  The revenue may not be used for a
5.6 	building or property or part of a building or property used for
5.7 	postsecondary instruction or administration or for a purpose
5.8 	unrelated to elementary and secondary education.
5.9 	(b) Notwithstanding paragraph (a), health and safety
5.10 	revenue must not be used for replacement of building materials
5.11 	or facilities including roof, walls, windows, internal fixtures
5.12 	and flooring, nonhealth and safety costs associated with
5.13 	demolition of facilities, structural repair or replacement of
5.14 	facilities due to unsafe conditions, violence prevention and
5.15 	facility security, ergonomics, building and heating, ventilating
5.16 	and air conditioning supplies, maintenance, cleaning, testing,
5.17 	and calibration activities.  All assessments, investigations,
5.18 	inventories, and support equipment not leading to the
5.19 	engineering or construction of a project shall be included in
5.20 	the health, safety, and environmental management costs in
5.21 	subdivision 8, paragraph (a).by the school district board.
5.22 	(b) Allowable expenditures include all reasonable costs to
5.23 	maintain safe and secure schools.  Health and safety revenue may
5.24 	be used to:
5.25 	(1) comply with applicable environmental, health and safety
5.26 	standards enforced by the following regulatory agencies:
5.27 	(i) United States Occupational Safety and Health
5.28 	Administration (OSHA);
5.29 	(ii) United States Environmental Protection Agency (EPA);
5.30 	(iii) Minnesota Department of Labor and Industry (MDOLI);
5.31 	(iv) Minnesota Occupational Safety and Health
5.32 	Administration (MNOSHA);
5.33 	(v) Minnesota Pollution Control Agency (MPCA);
5.34 	(vi) Minnesota Department of Health (MDH);
5.35 	(vii) Minnesota Department of Public Safety (MDPS);
5.36 	(viii) Minnesota Department of Transportation (MnDOT); and 
6.1 	(ix) Counties and Cities;
6.2 	(2) train staff on safe work practices, accident and injury
6.3 	prevention, and emergency procedures;
6.4 	(3) provide personal protective equipment to students and
6.5 	staff;
6.6 	(4) identify, assess, and control:
6.7 	(i) fire and life safety hazards;
6.8 	(ii) physical hazards;
6.9 	(iii) ergonomic hazards;
6.10 	(iv) hazardous materials and hazardous wastes;
6.11 	(v) hazardous infectious agents;
6.12 	(vi) asbestos hazards, including replacement of
6.13 	asbestos-containing building materials and affected nonasbestos
6.14 	components including, but not limited to, carpet, ceiling grid,
6.15 	lights, and diffusers;
6.16 	(vii) playground hazards, including repair and replacement
6.17 	of equipment and impact surfacing to comply with CPSC
6.18 	guidelines.  This evaluator does not have to be a district
6.19 	employee.  The cost to seal wooden play sets that might leach
6.20 	Chromate Copper Arsenate (CCA) is also allowable; and 
6.21 	(viii) security hazards, including access control systems
6.22 	and monitoring equipment;
6.23 	(5) manage aboveground and underground storage tanks used
6.24 	for storing heating fuel or transportation fuels such as
6.25 	alcohol, gasoline, fuel oil, used oil, or special fuel, as
6.26 	defined in section 296A.01, including tightness testing, cleanup
6.27 	of any petroleum product spills, and repair or replacement of
6.28 	the tank and piping;
6.29 	(6) monitor and improve indoor air quality, including
6.30 	assessments, testing, replacement of mold damaged building
6.31 	materials, balancing and commissioning of HVAC systems, duct
6.32 	cleaning, HVAC filter replacements, and upgrades or replacement
6.33 	of HVAC system components to comply with current standards
6.34 	established by the American Society of Heating, Refrigerating
6.35 	and Air Conditioning Engineers (ASHRAE) and State Mechanical
6.36 	Codes;
7.1 	(7) provide local or buildingwide humidification and
7.2 	dehumidification;
7.3 	(8) prepare for emergencies, including emergency
7.4 	communications equipment such as public address systems,
7.5 	cellular phones, walkie-talkies, repeaters, antennas, pagers,
7.6 	and parent notification systems; emergency response equipment
7.7 	such as AEDs, flashlights, first aid supplies; and communication
7.8 	of emergency procedures;
7.9 	(9) correct Department of Health food code violations;
7.10 	(10) correct Department of Health swimming pool violations,
7.11 	excluding depth correction.  Costs to bring swimming pools up to
7.12 	code per Minnesota Rules, chapter 4717, capital but not
7.13 	operational expenses are allowable; and 
7.14 	(11) establish safety committees, including hourly wages of
7.15 	employees and substitutes conducting the work.
7.16 	(c) When a district identifies a project where eligibility
7.17 	is unclear, the district may request that the project be given
7.18 	funding consideration.  The department may not approve costs
7.19 	that are specifically restricted in subdivision 7.  All other
7.20 	reasonable costs that have been approved by the school board and
7.21 	meet the intent of this subdivision must be allowed.
7.22 	(d) Project approval is not contingent on written orders
7.23 	from the local authority having jurisdiction.  Recognized health
7.24 	and safety hazards should be corrected as soon as possible to
7.25 	prevent injuries.
7.26 	(e) Any fire and life safety project that exceeds $10,000
7.27 	per site must be reviewed and approved by the state fire marshal
7.28 	school plan reviewer before beginning work.

7.29 	Sec. 4. Minnesota Statutes 2004, section 123B.57, is
7.30 	amended by adding a subdivision to read:
7.31 		Subd. 6a.Restrictions on health and safety
7.32 	revenue. Health and safety revenue may not be used for:
7.33 	(1) the finance of a lease purchase agreement, installment
7.34 	purchase agreement, or other deferred payments agreement;
7.35 	(2) interest or other financing expenses, or for energy
7.36 	efficiency projects under section 123B.65;
8.1 	(3) any work performed under an energy performance contract
8.2 	or with bond proceeds, including facilities and equipment bonds;
8.3 	(4) the construction of new facilities;
8.4 	(5) the purchase of portable classrooms;
8.5 	(6) energy efficiency projects under section 123B.65;
8.6 	(7) a building or property or part of a building or
8.7 	property used for postsecondary instruction or administration or
8.8 	for a purpose unrelated to elementary and secondary education;
8.9 	(8) repair or replacement of roofs, exterior walls, or
8.10 	windows;
8.11 	(9) nonhealth and safety costs associated with demolition
8.12 	of facilities;
8.13 	(10) structural repair or replacement of facilities due to
8.14 	unsafe conditions;
8.15 	(11) violence prevention programs;
8.16 	(12) Department of Health licenses or certification
8.17 	required for kitchen staff;
8.18 	(13) costs to air condition any portion of a building
8.19 	unless justified by extraordinary circumstances; and 
8.20 	(14) PPE used in extracurricular activities.

8.21 	Sec. 5. Minnesota Statutes 2004, section 123B.57,
8.22 	subdivision 8, is amended to read:
8.23 		Subd. 8.Health, safety, and environmental management
8.24 	cost.  (a) A district's cost for health, safety, and
8.25 	environmental management is limited to the lesser of:
8.26 	(1) actual cost to implement their plan; or 
8.27 	(2) an amount determined by the commissioner, based on
8.28 	enrollment, building age, and size includes any activities
8.29 	deemed necessary by the local school board to implement the
8.30 	district's health, safety, and environmental management
8.31 	programs.  These activities include, but are not limited to,
8.32 	hazard assessment, plan development, training, program
8.33 	management, and record keeping.
8.34 	(b) The department may contract with regional service
8.35 	organizations, private contractors, Minnesota Safety Council, or
8.36 	state agencies to shall provide management assistance to school
9.1 	districts for health and ,safety capital projects , and
9.2 	environmental compliance when requested.  Management
9.3 	assistance is includes the development of written programs 
9.4 	plans, policies, and procedures for the identification,
9.5 	recognition and control of hazards, and prioritization and
9.6 	scheduling of district health and safety capital projects.  The
9.7 	department shall not exclude private contractors from the
9.8 	opportunity to provide any health and safety services to school
9.9 	districts.
9.10 	(c) Notwithstanding paragraph (b), the department may
9.11 	approve revenue, up to the limit defined in paragraph (a) for
9.12 	districts having an approved health, safety, and environmental
9.13 	management plan that uses district staff to accomplish
9.14 	coordination and provided services.