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Minnesota Legislature

Office of the Revisor of Statutes

123A.443 GRANT APPLICATION PROCESS.
    Subdivision 1. Qualification. Any group of districts that meets the criteria required under
subdivision 2 may apply for an incentive grant for construction of a new secondary facility
or for remodeling and improving an existing secondary facility. A grant for new construction
must not exceed the lesser of $5,000,000 or 75 percent of the approved construction costs of a
cooperative secondary education facility. A grant for remodeling and improving an existing
facility must not exceed $200,000.
    Subd. 2. Review by commissioner. (a) A group of districts that submits an application for
a grant must submit a proposal to the commissioner for review and comment under section
123B.71. The commissioner shall prepare a review and comment on the proposed facility by
July 1 of an odd-numbered year, regardless of the amount of the capital expenditure required
to acquire, construct, remodel or improve the secondary facility. The commissioner shall not
approve an application for an incentive grant for any secondary facility unless the facility receives
a favorable review and comment under section 123B.71 and the following criteria are met:
(1) a minimum of two or more districts, with kindergarten to grade 12 enrollments in each
district of no more than 1,200 pupils, enter into a joint powers agreement;
(2) a joint powers board representing all participating districts is established under section
471.59 to govern the cooperative secondary facility;
(3) the planned secondary facility will result in the joint powers district meeting the
requirements of Minnesota Rules, parts 3500.2010 and 3500.2110;
(4) at least 198 pupils would be served in grades 10 to 12, 264 pupils would be served in
grades 9 to 12, or 396 pupils would be served in grades 7 to 12;
(5) no more than one superintendent is employed by the joint powers board as a result of
the cooperative secondary facility agreement;
(6) a statement of need is submitted, that may include reasons why the current secondary
facilities are inadequate, unsafe or inaccessible to persons with disabilities;
(7) an educational plan is prepared, that includes input from both community and
professional staff;
(8) a combined seniority list for all participating districts is developed by the joint powers
board;
(9) an education program is developed that provides for more learning opportunities and
course offerings, including the offering of advanced placement courses, for students than is
currently available in any single member district;
(10) a plan is developed for providing instruction of any resident students in other districts
when distance to the secondary education facility makes attendance at the facility unreasonably
difficult or impractical; and
(11) the joint powers board established under clause (2) discusses with technical colleges
located in the area how vocational education space in the cooperative secondary facility could be
jointly used for secondary and postsecondary purposes.
(b) To the extent possible, the joint powers board is encouraged to provide for severance
pay or for early retirement incentives under section 122A.48, for any teacher or administrator, as
defined under section 122A.40, subdivision 1, who is placed on unrequested leave as a result of
the cooperative secondary facility agreement.
(c) For the purpose of paragraph (a), clause (8), each district must be considered to have
started school each year on the same date.
(d) The districts may develop a plan that provides for the location of social service, health,
and other programs serving pupils and community residents within the cooperative secondary
facility. The commissioner shall consider this plan when preparing a review and comment on
the proposed facility.
(e) The districts must schedule and conduct a meeting on library services. The school
districts, in cooperation with the regional public library system and its appropriate member
libraries, must discuss the possibility of including jointly operated library services at the
cooperative secondary facility.
(f) The board of a district that has reorganized under section 123A.37 or 123A.48 and that
is applying for a grant for remodeling or improving an existing facility may act in the place of
a joint powers board to meet the criteria of this subdivision.
    Subd. 3. Reorganizing districts. A district that is a member of a joint powers board
established under subdivision 2 and that is planning to reorganize under section 123A.45,
123A.46, or 123A.48 must notify the joint powers board one year in advance of the effective
date of the reorganization. Notwithstanding section 471.59 or any other law to the contrary, the
board of a district that reorganizes under section 123A.45, 123A.46, or 123A.48 may appoint
representatives to the joint powers board who will serve on the joint powers board for two years
after the effective date of the reorganization if authorized in the agreement establishing the joint
powers board to govern the cooperative secondary facility. These representatives shall have the
same powers as representatives of any other school district under the joint powers agreement.
    Subd. 4. District procedures. A joint powers board of a secondary district established under
subdivision 2 or a school board of a reorganized district that intends to apply for a grant must
adopt a resolution stating the proposed costs of the project, the purpose for which the costs are
to be incurred, and an estimate of the dates when the facilities for which the grant is requested
will be contracted for and completed. Applications for the state grants must be accompanied by
(a) a copy of the resolution, (b) a certificate by the clerk and treasurer of the joint powers board
showing the current outstanding indebtedness of each member district, and (c) a certificate by
the county auditor of each county in which a portion of the joint powers district lies showing the
information in the auditor's official records that is required to be used in computing the debt
limit of the district under section 475.53, subdivision 4. The clerk's and treasurer's certificate
must show, as to each outstanding bond issue of each member district, the amount originally
issued, the purpose for which issued, the date of issue, the amount remaining unpaid as of the
date of the resolution, and the interest rates and due dates and amounts of principal thereon.
Applications and necessary data must be in the form prescribed by the commissioner and the rules
of the State Board of Education before December 31, 1999, and after December 30, 1999, in
the form prescribed by the commissioner. Applications must be received by the commissioner
by September 1 of an odd-numbered year. When an application is received, the commissioner
shall obtain from the commissioner of revenue, and from the Public Utilities Commission when
required, the information in their official records that is required to be used in computing the debt
limit of the joint powers district under section 475.53, subdivision 4.
    Subd. 5. Award of grants. By November 1 of the odd-numbered year, the commissioner
shall examine and consider all applications for grants, and if any district is found not qualified, the
commissioner shall promptly notify that board.
A grant award is subject to verification by the district as specified in subdivision 8. A
grant award for a new facility must not be made until the site of the secondary facility has
been determined. A grant award to remodel or improve an existing facility must not be made
until the districts have reorganized. If the total amount of the approved applications exceeds
the amount that is or can be made available, the commissioner shall allot the available amount
equally between the approved applicant districts. The commissioner shall promptly certify to each
qualified district the amount, if any, of the grant awarded to it.
    Subd. 6. Collocation grant. A group of districts that receives a grant for a new facility
under subdivision 4 is also eligible to receive an additional grant in the amount of $1,000,000.
To receive the additional grant, the group of districts must develop a plan under subdivision 2,
paragraph (d), that provides for the location of a significant number of noneducational student and
community service programs within the cooperative secondary facility.
    Subd. 7. Referendum; bond issue. Within 180 days after being awarded a grant for a new
facility under subdivision 5, the joint powers board must submit the question of authorizing
the borrowing of funds for the secondary facility to the voters of the joint powers district at a
special election, which may be held in conjunction with the annual election of the school board
members of the member districts. The question submitted must state the total amount of funding
needed from all sources. A majority of those voting in the affirmative on the question is sufficient
to authorize the joint powers board to accept the grant and to issue the bonds on public sale in
accordance with chapter 475. The clerk of the joint powers board must certify the vote of the
bond election to the commissioner. If the question is approved by the voters, the commissioner
shall notify the approved applicant districts that the grant amount certified under subdivision 5 is
available and appropriated for payment under this subdivision. If a majority of those voting on the
question do not vote in the affirmative, the grant must be canceled.
    Subd. 8. Contract. Each grant must be evidenced by a contract between the board and
the state acting through the commissioner. The contract obligates the state to pay to the board
an amount computed according to subdivision 5, and according to a schedule, and terms and
conditions acceptable to the commissioner of finance.
    Subd. 9. Consolidation. A group of districts that operates a cooperative secondary facility
that was acquired, constructed, remodeled, or improved under this section and implements
consolidation proceedings according to section 123A.48, may propose a temporary school board
structure in the petition or resolution required under section 123A.48, subdivision 2. The districts
may propose the number of existing school board members of each district to become members of
the board of the consolidated district and a method to gradually reduce the membership to six or
seven. The proposal must be approved, disapproved, or modified by the state board of education.
The election requirements of section 123A.48, subdivision 20, do not apply to a proposal
approved by the state board. Elections conducted after the effective date of the consolidation
are subject to the Minnesota Election Law.
History: 1987 c 400 s 36,59; 1988 c 718 art 8 s 13-15; 1989 c 300 art 2 s 2-4,13; 1989
c 329 art 6 s 38; 1990 c 562 art 6 s 27; 1992 c 409 s 2; 1992 c 499 art 5 s 10-12; 1993 c 224
art 5 s 18-20; 1994 c 643 s 55-61; 1Sp1995 c 2 art 1 s 32-34; 1Sp1995 c 3 art 16 s 13; 1998 c
397 art 7 s 68-73,164; art 11 s 3; 1999 c 241 art 4 s 29; 2000 c 464 art 3 s 9; 2000 c 489 art 5
s 19,27; 2004 c 294 art 5 s 4; 2005 c 56 s 1