Bill Text: MN HF1040 | 2011-2012 | 87th Legislature | Introduced
Bill Title: School district lease levy authority amended.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2011-03-10 - Introduction and first reading, referred to Education Finance [HF1040 Detail]
Download: Minnesota-2011-HF1040-Introduced.html
1.2relating to education finance; amending lease levy authority;amending
1.3Minnesota Statutes 2010, section 126C.40, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 126C.40, subdivision 1, is amended to read:
1.6 Subdivision 1. To lease building or land. (a) When an independent or a special
1.7school district or a group of independent or special school districts finds it economically
1.8advantageous to rent or lease a building or land for any instructional purposes or for
1.9school storage or furniture repair, and it determines that the operating capital revenue
1.10authorized under section126C.10, subdivision 13 , is insufficient for this purpose, it may
1.11apply to the commissioner for permission to make an additional capital expenditure levy
1.12for this purpose. An application for permission to levy under this subdivision must contain
1.13financial justification for the proposed levy, the terms and conditions of the proposed
1.14lease, and a description of the space to be leased and its proposed use.
1.15 (b) The criteria for approval of applications to levy under this subdivision must
1.16include: the reasonableness of the price, the appropriateness of the space to the proposed
1.17activity, the feasibility of transporting pupils to the leased building or land, conformity
1.18of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
1.19the proposed lease to the space needs and the financial condition of the district. The
1.20commissioner must not authorize a levy under this subdivision in an amount greater than
1.21the cost to the district of renting or leasing a building or land for approved purposes.
1.22The proceeds of this levy must not be used for custodial or other maintenance services.
1.23A district may not levy under this subdivision for the purpose of leasing or renting a
1.24district-owned building or site to itself.
2.1 (c) For agreements finalized after July 1, 1997, a district may not levy under this
2.2subdivision for the purpose of leasing: (1) a newly constructed building used primarily
2.3for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
2.4building addition or additions used primarily for regular kindergarten, elementary, or
2.5secondary instruction that contains more than 20 percent of the square footage of the
2.6previously existing building.
2.7 (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
2.8purpose of leasing or renting a district-owned building or site to itself only if the amount
2.9is needed by the district to make payments required by a lease purchase agreement,
2.10installment purchase agreement, or other deferred payments agreement authorized by law,
2.11and the levy meets the requirements of paragraph (c). A levy authorized for a district by
2.12the commissioner under this paragraph may be in the amount needed by the district to
2.13make payments required by a lease purchase agreement, installment purchase agreement,
2.14or other deferred payments agreement authorized by law, provided that any agreement
2.15include a provision giving the school districts the right to terminate the agreement
2.16annually without penalty.
2.17 (e) The total levy under this subdivision for a district for any year must not exceed
2.18$150 times the resident pupil units for the fiscal year to which the levy is attributable.
2.19 (f) For agreements for which a review and comment have been submitted to the
2.20Department of Education after April 1, 1998, the term "instructional purpose" as used in
2.21this subdivision excludes expenditures on stadiums.
2.22 (g) The commissioner of education may authorize a school district to exceed the
2.23limit in paragraph (e) if the school district petitions the commissioner for approval. The
2.24commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
2.25for not more than five years if the district meets the following criteria:
2.26 (1) the school district has been experiencing pupil enrollment growth in the
2.27preceding five years;
2.28 (2) the purpose of the increased levy is in the long-term public interest;
2.29 (3) the purpose of the increased levy promotes colocation of government services;
2.30and
2.31 (4) the purpose of the increased levy is in the long-term interest of the district by
2.32avoiding over construction of school facilities.
2.33 (h) A school district that is a member of an intermediate school district may include
2.34in its authority under this section the costs associated with leases of administrative and
2.35classroom space for intermediate school district programs. This authority must not exceed
3.1$43 times the adjusted marginal cost pupil units of the member districts. This authority is
3.2in addition to any other authority authorized under this section.
3.3 (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
3.42012 to 2022, a district that is a member of the "Technology and Information Education
3.5Systems" data processing joint board, that finds it economically advantageous to enter
3.6into a leasepurchase agreement for to finance improvements to a building for a group of
3.7school districts or special school districts for staff development purposes, may levy for
3.8its portion of lease costs attributed to the district within the total levy limit in paragraph
3.9(e). The total levy authority under this paragraph shall not exceed $632,000 each year.
3.10EFFECTIVE DATE.This section is effective for taxes payable in 2012 and later.
1.3Minnesota Statutes 2010, section 126C.40, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 126C.40, subdivision 1, is amended to read:
1.6 Subdivision 1. To lease building or land. (a) When an independent or a special
1.7school district or a group of independent or special school districts finds it economically
1.8advantageous to rent or lease a building or land for any instructional purposes or for
1.9school storage or furniture repair, and it determines that the operating capital revenue
1.10authorized under section
1.11apply to the commissioner for permission to make an additional capital expenditure levy
1.12for this purpose. An application for permission to levy under this subdivision must contain
1.13financial justification for the proposed levy, the terms and conditions of the proposed
1.14lease, and a description of the space to be leased and its proposed use.
1.15 (b) The criteria for approval of applications to levy under this subdivision must
1.16include: the reasonableness of the price, the appropriateness of the space to the proposed
1.17activity, the feasibility of transporting pupils to the leased building or land, conformity
1.18of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
1.19the proposed lease to the space needs and the financial condition of the district. The
1.20commissioner must not authorize a levy under this subdivision in an amount greater than
1.21the cost to the district of renting or leasing a building or land for approved purposes.
1.22The proceeds of this levy must not be used for custodial or other maintenance services.
1.23A district may not levy under this subdivision for the purpose of leasing or renting a
1.24district-owned building or site to itself.
2.1 (c) For agreements finalized after July 1, 1997, a district may not levy under this
2.2subdivision for the purpose of leasing: (1) a newly constructed building used primarily
2.3for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
2.4building addition or additions used primarily for regular kindergarten, elementary, or
2.5secondary instruction that contains more than 20 percent of the square footage of the
2.6previously existing building.
2.7 (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
2.8purpose of leasing or renting a district-owned building or site to itself only if the amount
2.9is needed by the district to make payments required by a lease purchase agreement,
2.10installment purchase agreement, or other deferred payments agreement authorized by law,
2.11and the levy meets the requirements of paragraph (c). A levy authorized for a district by
2.12the commissioner under this paragraph may be in the amount needed by the district to
2.13make payments required by a lease purchase agreement, installment purchase agreement,
2.14or other deferred payments agreement authorized by law, provided that any agreement
2.15include a provision giving the school districts the right to terminate the agreement
2.16annually without penalty.
2.17 (e) The total levy under this subdivision for a district for any year must not exceed
2.18$150 times the resident pupil units for the fiscal year to which the levy is attributable.
2.19 (f) For agreements for which a review and comment have been submitted to the
2.20Department of Education after April 1, 1998, the term "instructional purpose" as used in
2.21this subdivision excludes expenditures on stadiums.
2.22 (g) The commissioner of education may authorize a school district to exceed the
2.23limit in paragraph (e) if the school district petitions the commissioner for approval. The
2.24commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
2.25for not more than five years if the district meets the following criteria:
2.26 (1) the school district has been experiencing pupil enrollment growth in the
2.27preceding five years;
2.28 (2) the purpose of the increased levy is in the long-term public interest;
2.29 (3) the purpose of the increased levy promotes colocation of government services;
2.30and
2.31 (4) the purpose of the increased levy is in the long-term interest of the district by
2.32avoiding over construction of school facilities.
2.33 (h) A school district that is a member of an intermediate school district may include
2.34in its authority under this section the costs associated with leases of administrative and
2.35classroom space for intermediate school district programs. This authority must not exceed
3.1$43 times the adjusted marginal cost pupil units of the member districts. This authority is
3.2in addition to any other authority authorized under this section.
3.3 (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
3.42012 to 2022, a district that is a member of the "Technology and Information Education
3.5Systems" data processing joint board, that finds it economically advantageous to enter
3.6into a lease
3.7school districts or special school districts for staff development purposes, may levy for
3.8its portion of lease costs attributed to the district within the total levy limit in paragraph
3.9(e). The total levy authority under this paragraph shall not exceed $632,000 each year.
3.10EFFECTIVE DATE.This section is effective for taxes payable in 2012 and later.
