HF 4037

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/07/2022 03:01pm

A bill for an act
relating to education finance; authorizing Independent School District No. 318,
Grand Rapids, to transfer levy authority from long-term facilities maintenance
revenue to the debt redemption fund; requiring a report; authorizing the sale and
issuance of state bonds.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. SCHOOL BUILDING EFFICIENCIES; GRAND RAPIDS SCHOOL
DISTRICT.

Subdivision 1.

Plan.

(a) Independent School District No. 318, Grand Rapids, must
develop a plan to reduce facility lease costs. The plan must document the current operating
costs of the facility and the expected maintenance costs for the facility over the next 20
years and describe the cost savings for moving programs and staff to Southwest Elementary
School.

(b) The plan must document potential building projects, which may include:

(1) constructing, remodeling, or adding new administrative space, including a board
room, training rooms, and other offices;

(2) constructing, remodeling, or adding a new area learning center; and

(3) constructing, remodeling, or adding a new early childhood program space.

(c) The plan must be submitted by the school board to the commissioner of education
after the hearing required in subdivision 2.

(d) The commissioner must examine the plan, and if the commissioner determines that
the plan will yield financial, student, and staff efficiencies for the district, must approve the
plan.

Subd. 2.

Public hearing.

At least 30 days prior to submitting for review and comment
the plan developed under subdivision 1 documenting potential building projects, the school
board must hold a public hearing on the plan and the building projects. The school board
must allow public testimony on the proposal.

Subd. 3.

Review and comment.

The district must submit the projects included in the
plan to the commissioner of education for review and comment under Minnesota Statutes,
section 123B.71.

Subd. 4.

Bond authorization.

(a) Independent School District No. 318, Grand Rapids,
may issue general obligation bonds in an amount not to exceed $5,000,000 under this section
to finance the school facility plan approved by the district and the commissioner of education
under subdivision 1. The district must comply with Minnesota Statutes, chapter 475, except
Minnesota Statutes, sections 475.58 and 475.59. The authority to issue bonds under this
section is in addition to any other bonding authority granted to the district.

(b) At least 20 days before the issuance of bonds or the final certification of levies under
this section, the district must publish notice of the intended projects, the amount of the bonds
to be issued, and the total amount of the district's debt.

(c) The debt service required by the bonds issued is debt service revenue under Minnesota
Statutes, section 123B.53.

Subd. 5.

Long-term facilities maintenance revenue.

The commissioner of education
must ensure that the district's long-term facilities maintenance plan under Minnesota Statutes,
section 123B.595, reflects the savings outlined in the plan developed in subdivision 1.

Subd. 6.

Report.

By February 15 of each even-numbered year, Independent School
District No. 318, Grand Rapids, must submit a report to the commissioner of education and
to the chairs and ranking minority members of the legislative committees having jurisdiction
over education finance detailing the outcomes and efficiencies achieved under this section.

EFFECTIVE DATE.

This section is effective the day following final enactment.