Bill Text: MN SF289 | 2011-2012 | 87th Legislature | Introduced
Bill Title: School finance capital expenditure health and safety revenue program modifications; health and safety policy
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2011-02-10 - Referred to Education [SF289 Detail]
Download: Minnesota-2011-SF289-Introduced.html
1.2relating to education finance; streamlining the health and safety revenue program;
1.3amending Minnesota Statutes 2010, section 123B.57.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 123B.57, is amended to read:
1.6123B.57 CAPITAL EXPENDITURE; HEALTH AND SAFETY.
1.7 Subdivision 1. Health and safetyprogram revenue application. (a) To receive
1.8health and safety revenue for any fiscal year a district must submit to the commissioner
1.9an a capital expenditure health and safety revenue application for aid and levy by the
1.10date determined by the commissioner.The application may be for hazardous substance
1.11removal, fire and life safety code repairs, labor and industry regulated facility and
1.12equipment violations, and health, safety, and environmental management, including
1.13indoor air quality management. The application must include a health and safety program
1.14budget adopted and confirmed by the school district board as being consistent with the
1.15district's health and safety policy under subdivision 2. Theprogram budget must include
1.16the estimated cost, per building, of the program per Uniform Financial Accounting and
1.17Reporting Standards (UFARS) finance code by fiscal year. Upon approval through the
1.18adoption of a resolution by each of an intermediate district's member school district
1.19boards and the approval of the Department of Education, a school district may include
1.20its proportionate share of the costs of health and safety projects for an intermediate
1.21district in its application.
1.22(b) Health and safety projects with an estimated cost of $500,000 or more per
1.23site are not eligible for health and safety revenue. Health and safety projects with an
1.24estimated cost of $500,000 or more per site that meet all other requirements for health and
2.1safety funding, are eligible for alternative facilities bonding and levy revenue according
2.2to section123B.59 . A school board shall not separate portions of a single project into
2.3components to qualify for health and safety revenue, and shall not combine unrelated
2.4projects into a single project to qualify for alternative facilities bonding and levy revenue.
2.5(c) The commissioner of education shall not make eligibility for health and safety
2.6revenue contingent on a district's compliance status, level of program development, or
2.7training. The commissioner shall not mandate additional performance criteria such as
2.8training, certifications, or compliance evaluations as a prerequisite for levy approval.
2.9 Subd. 2.Contents of program Health and safety policy. To qualify for health
2.10and safety revenue, adistrict school board must adopt a health and safety program policy.
2.11Theprogram policy must include plans, where applicable, for hazardous substance
2.12removal, fire and life safety code repairs, regulated facility and equipment violations,
2.13and provisions for implementing a health and safety program that complies with health,
2.14safety, and environmentalmanagement, regulations and best practices, including indoor
2.15air quality management.
2.16(a) A hazardous substance plan must contain provisions for the removal or
2.17encapsulation of asbestos from school buildings or property, asbestos-related repairs,
2.18cleanup and disposal of polychlorinated biphenyls found in school buildings or property,
2.19and cleanup, removal, disposal, and repairs related to storing heating fuel or transportation
2.20fuels such as alcohol, gasoline, fuel, oil, and special fuel, as defined in section
296A.01.
2.21If a district has already developed a plan for the removal or encapsulation of asbestos as
2.22required by the federal Asbestos Hazard Emergency Response Act of 1986, the district
2.23may use a summary of that plan, which includes a description and schedule of response
2.24actions, for purposes of this section. The plan must also contain provisions to make
2.25modifications to existing facilities and equipment necessary to limit personal exposure
2.26to hazardous substances, as regulated by the federal Occupational Safety and Health
2.27Administration under Code of Federal Regulations, title 29, part 1910, subpart Z; or is
2.28determined by the commissioner to present a significant risk to district staff or student
2.29health and safety as a result of foreseeable use, handling, accidental spill, exposure, or
2.30contamination.
2.31(b) A fire and life safety plan must contain a description of the current fire and life
2.32safety code violations, a plan for the removal or repair of the fire and life safety hazard,
2.33and a description of safety preparation and awareness procedures to be followed until the
2.34hazard is fully corrected.
3.1(c) A facilities and equipment violation plan must contain provisions to correct
3.2health and safety hazards as provided in Department of Labor and Industry standards
3.3pursuant to section
182.655.
3.4(d) A health, safety, and environmental management plan must contain a description
3.5of training, record keeping, hazard assessment, and program management as defined
3.6in section
123B.56.
3.7(e) A plan to test for and mitigate radon produced hazards.
3.8(f) A plan to monitor and improve indoor air quality.
3.9 Subd. 3. Health and safety revenue. A district's health and safety revenue
3.10for a fiscal year equals the district's alternative facilities levy under section123B.59 ,
3.11subdivision 5, paragraph (b), plus the greater of zero or:
3.12 (1) the sum of (a) the total approved cost of the district's hazardous substance
3.13plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's
3.14health and safety program for fiscal year 1990 through the fiscal year to which the levy
3.15is attributable, excluding expenditures funded with bonds issued under section123B.59
3.16or
123B.62 , or chapter 475; certificates of indebtedness or capital notes under section
3.17123B.61
; levies under section
123B.58 ,
123B.59 ,
123B.63 , or
126C.40, subdivision 1 or
3.186; and other federal, state, or local revenues, minus
3.19 (2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years
3.201985 through 1989 under sections124.245 and
275.125, subdivision 11c , plus (b) the
3.21district's health and safety revenue under this subdivision, for years before the fiscal year
3.22to which the levy is attributable.
3.23 Subd. 4. Health and safety levy. To receive health and safety revenue, a district
3.24may levy an amount equal to the district's health and safety revenue as defined in
3.25subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by
3.26dividing the adjusted net tax capacity of the district for the year preceding the year the
3.27levy is certified by the adjusted marginal cost pupil units in the district for the school year
3.28to which the levy is attributable, to $2,935.
3.29 Subd. 5. Health and safety aid. A district's health and safety aid is the difference
3.30between its health and safety revenue and its health and safety levy. If a district does not
3.31levy the entire amount permitted, health and safety aid must be reduced in proportion to
3.32the actual amount levied. Health and safety aid may not be reduced as a result of reducing
3.33a district's health and safety levy according to section123B.79 .
3.34 Subd. 6. Uses of health and safety revenue.(a) Health and safety revenue may
3.35be used only for approved expenditures necessaryto correct for the correction of fire
3.36and life safety hazards, or for the; design, purchase, installation, maintenance, and
4.1inspection of fire protection and alarm equipment; purchase or construction of appropriate
4.2facilities for the storage of combustible and flammable materials; inventories and facility
4.3modifications not related to a remodeling project to comply with lab safety requirements
4.4under section 121A.31; inspection, testing, repair, removal or encapsulation, and disposal
4.5ofasbestos from school buildings or property owned or being acquired by the district,
4.6asbestos-related repairs, asbestos-containing building materials; cleanup and disposal
4.7of polychlorinated biphenylsfound in school buildings or property owned or being
4.8acquired by the district, or the; cleanup and disposal of hazardous and infectious wastes;
4.9cleanup, removal, disposal, and repairs related to storing heating fuel or transportation
4.10fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined in section296A.01 ,
4.11Minnesota; correction of occupational safety and health administration regulated facility
4.12and equipment hazards,; indoor air quality inspections, investigations, and testing; mold
4.13abatement,; upgrades or replacement of mechanical ventilation systems to meet American
4.14Society of Heating, Refrigerating and Air Conditioning Engineers standards and State
4.15Mechanical Code,; design, materials, and installation of local exhaust ventilation systems,
4.16including required make-up air for controlling regulated hazardous substances; correction
4.17of Department of Health Food Codeand violations; correction of swimming pool hazards
4.18excluding depth correction,; playground safety inspections and the installation of impact
4.19surfacing materials; bleacher repair or rebuilding to comply with the order of a building
4.20code inspector under section 326B.112; testing and mitigation of elevated radon hazards;
4.21lead in water, paint, soil, and toys testing; copper in water testing; cleanup after major
4.22weather-related disasters or flooding; reduction of excessive organic and inorganic levels
4.23in wells and well capping of abandoned wells; installation and testing of boiler backflow
4.24valves to prevent contamination of potable water; vaccinations, titers, and preventative
4.25supplies for bloodborne pathogen compliance; costs to comply with the Janet B. Johnson
4.26Parents' Right To Know Act; and health, safety, and environmental management costs
4.27associated with implementing the district's health and safety program, including costs
4.28to establish and operate safety committees, in school buildings or property owned or
4.29being acquired by the district. Testing and calibration activities are permitted for existing
4.30mechanical ventilation systems at intervals no less than every five years.Health and safety
4.31revenue must not be used to finance a lease purchase agreement, installment purchase
4.32agreement, or other deferred payments agreement. Health and safety revenue must not
4.33be used for the construction of new facilities or the purchase of portable classrooms,
4.34for interest or other financing expenses, or for energy efficiency projects under section
4.35123B.65. The revenue may not be used for a building or property or part of a building or
5.1property used for postsecondary instruction or administration or for a purpose unrelated
5.2to elementary and secondary education.
5.3 Subd. 6a. Restrictions on health and safety revenue.(b) Notwithstanding
5.4paragraph (a) subdivision 6, health and safety revenue must not be used : (1) to finance a
5.5lease purchase agreement, installment purchase agreement, or other deferred payments
5.6agreement; (2) for the construction of new facilities, remodeling of existing facilities, or
5.7the purchase of portable classrooms; (3) for interest or other financing expenses; (4) for
5.8energy efficiency projects under section 123B.65 for a building or property or part of a
5.9building or property used for postsecondary instruction or administration or for a purpose
5.10unrelated to elementary and secondary education; (5) for replacement of building materials
5.11or facilities including roof, walls, windows, internal fixtures and flooring, nonhealth and
5.12safety costs associated with demolition of facilities, structural repair or replacement of
5.13facilities due to unsafe conditions, violence prevention and facility security, ergonomics, ;
5.14or (6) for building and heating, ventilating and air conditioning supplies, maintenance, and
5.15cleaning activities. All assessments, investigations, inventories, and support equipment
5.16not leading to the engineering or construction of a project shall be included in the health,
5.17safety, and environmental management costs in subdivision 8, paragraph (a).
5.18 Subd. 6b. Health and safety projects. (a) Health and safety revenue applications
5.19defined in subdivision 1 must be accompanied by a description of each project for which
5.20funding is being requested. Project descriptions must provide enough detail for an auditor
5.21to determine if the work qualifies for revenue. For projects other than fire and life
5.22safety projects, playground projects, and health, safety, and environmental management
5.23activities, a project description does not need to include itemized details such as material
5.24types, room locations, square feet, names, or license numbers. The commissioner shall
5.25approve only projects that comply with subdivisions 6 and 8, as defined by the Department
5.26of Education.
5.27(b) Districts may request funding for allowable projects based on self-assessments,
5.28safety committee recommendations, insurance inspections, management assistance
5.29reports, fire marshal orders, or other mandates. Notwithstanding subdivision 1, paragraph
5.30(b), and subdivision 8, paragraph (b), for projects under $500,000, individual project
5.31size for projects authorized by this subdivision is not limited and may include related
5.32work in multiple facilities. Health and safety management costs from subdivision 8 may
5.33be reported as a single project.
5.34(c) All costs directly related to a project shall be reported in the appropriate Uniform
5.35Financial Accounting and Reporting Standards (UFARS) finance code.
6.1(d) For fire and life safety egress and all other projects exceeding $20,000 and cited
6.2under Minnesota Fire Code, a fire marshal plan review is required.
6.3(e) Districts shall update project estimates with actual expenditures for each
6.4fiscal year. If a project's final cost is significantly higher than originally approved, the
6.5commissioner may request additional supporting information.
6.6 Subd. 6c. Appeals process. In the event a district is denied funding approval for
6.7a project the district believes complies with subdivisions 6 and 8, and is not otherwise
6.8excluded, a district may appeal the decision. All such requests must be in writing. The
6.9commissioner shall respond in writing. A written request must contain project number,
6.10description and amount, reason for denial, unresolved questions for consideration, reasons
6.11for reconsideration, and a specific statement of what action the district is requesting.
6.12 Subd. 7. Proration. In the event that the health and safety aid available for any year
6.13is prorated, a district having its aid prorated may levy an additional amount equal to the
6.14amount not paid by the state due to proration.
6.15 Subd. 8. Health, safety, and environmental management cost. (a) "Health, safety,
6.16and environmental management" is defined in section 123B.56.
6.17(b) A district's cost for health, safety, and environmental management is limited to
6.18the lesser of:
6.19(1) actual cost to implement their plan; or
6.20(2) an amount determined by the commissioner, based on enrollment, building
6.21age, and size.
6.22(b) (c) The department may contract with regional service organizations, private
6.23contractors, Minnesota Safety Council, or state agencies to provide management
6.24assistance to school districts for health and safety capital projects. Management assistance
6.25is the development of written programs for the identification, recognition and control of
6.26hazards, and prioritization and scheduling of district health and safety capital projects.
6.27Thedepartment commissioner shall not mandate management assistance or exclude
6.28private contractors from the opportunity to provide any health and safety services to
6.29school districts.
6.30(c) Notwithstanding paragraph (b), the department may approve revenue, up to
6.31the limit defined in paragraph (a) for districts having an approved health, safety, and
6.32environmental management plan that uses district staff to accomplish coordination and
6.33provided services.
6.34EFFECTIVE DATE.This section is effective July 1, 2011.
6.35 Sec. 2. HEALTH AND SAFETY POLICY.
7.1Notwithstanding Minnesota Statutes, section 123B.57, subdivision 2, a school board
7.2that has not yet adopted a health and safety policy by September 30, 2011, may submit an
7.3application for health and safety revenue for taxes payable in 2012 in the form and manner
7.4specified by the commissioner of education.
7.5EFFECTIVE DATE.This section is effective the day following final enactment.
1.3amending Minnesota Statutes 2010, section 123B.57.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 123B.57, is amended to read:
1.6123B.57 CAPITAL EXPENDITURE; HEALTH AND SAFETY.
1.7 Subdivision 1. Health and safety
1.8health and safety revenue for any fiscal year a district must submit to the commissioner
1.9
1.10date determined by the commissioner.
1.11
1.12
1.13
1.14budget adopted and confirmed by the school district board as being consistent with the
1.15district's health and safety policy under subdivision 2. The
1.16the estimated cost
1.17Reporting Standards (UFARS) finance code by fiscal year. Upon approval through the
1.18adoption of a resolution by each of an intermediate district's member school district
1.19boards and the approval of the Department of Education, a school district may include
1.20its proportionate share of the costs of health and safety projects for an intermediate
1.21district in its application.
1.22(b) Health and safety projects with an estimated cost of $500,000 or more per
1.23site are not eligible for health and safety revenue. Health and safety projects with an
1.24estimated cost of $500,000 or more per site that meet all other requirements for health and
2.1safety funding, are eligible for alternative facilities bonding and levy revenue according
2.2to section
2.3components to qualify for health and safety revenue, and shall not combine unrelated
2.4projects into a single project to qualify for alternative facilities bonding and levy revenue.
2.5(c) The commissioner of education shall not make eligibility for health and safety
2.6revenue contingent on a district's compliance status, level of program development, or
2.7training. The commissioner shall not mandate additional performance criteria such as
2.8training, certifications, or compliance evaluations as a prerequisite for levy approval.
2.9 Subd. 2.
2.10and safety revenue, a
2.11The
2.12
2.13
2.14safety, and environmental
2.15air quality management.
2.16
2.17
2.18
2.19
2.20
2.21
2.22
2.23
2.24
2.25
2.26
2.27
2.28
2.29
2.30
2.31
2.32
2.33
2.34
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9 Subd. 3. Health and safety revenue. A district's health and safety revenue
3.10for a fiscal year equals the district's alternative facilities levy under section
3.11subdivision 5, paragraph (b), plus the greater of zero or:
3.12 (1) the sum of (a) the total approved cost of the district's hazardous substance
3.13plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's
3.14health and safety program for fiscal year 1990 through the fiscal year to which the levy
3.15is attributable, excluding expenditures funded with bonds issued under section
3.186; and other federal, state, or local revenues, minus
3.19 (2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years
3.201985 through 1989 under sections
3.21district's health and safety revenue under this subdivision, for years before the fiscal year
3.22to which the levy is attributable.
3.23 Subd. 4. Health and safety levy. To receive health and safety revenue, a district
3.24may levy an amount equal to the district's health and safety revenue as defined in
3.25subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by
3.26dividing the adjusted net tax capacity of the district for the year preceding the year the
3.27levy is certified by the adjusted marginal cost pupil units in the district for the school year
3.28to which the levy is attributable, to $2,935.
3.29 Subd. 5. Health and safety aid. A district's health and safety aid is the difference
3.30between its health and safety revenue and its health and safety levy. If a district does not
3.31levy the entire amount permitted, health and safety aid must be reduced in proportion to
3.32the actual amount levied. Health and safety aid may not be reduced as a result of reducing
3.33a district's health and safety levy according to section
3.34 Subd. 6. Uses of health and safety revenue.
3.35be used only for approved expenditures necessary
3.36and life safety hazards
4.1inspection of fire protection and alarm equipment; purchase or construction of appropriate
4.2facilities for the storage of combustible and flammable materials; inventories and facility
4.3modifications not related to a remodeling project to comply with lab safety requirements
4.4under section 121A.31; inspection, testing, repair, removal or encapsulation, and disposal
4.5of
4.6
4.7of polychlorinated biphenyls
4.8
4.9cleanup, removal, disposal, and repairs related to storing heating fuel or transportation
4.10fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined in section
4.11
4.12
4.13abatement
4.14Society of Heating, Refrigerating and Air Conditioning Engineers standards and State
4.15Mechanical Code
4.16including required make-up air for controlling regulated hazardous substances; correction
4.17of Department of Health Food Code
4.18excluding depth correction
4.19surfacing materials; bleacher repair or rebuilding to comply with the order of a building
4.20code inspector under section 326B.112; testing and mitigation of elevated radon hazards;
4.21lead in water, paint, soil, and toys testing; copper in water testing; cleanup after major
4.22weather-related disasters or flooding; reduction of excessive organic and inorganic levels
4.23in wells and well capping of abandoned wells; installation and testing of boiler backflow
4.24valves to prevent contamination of potable water; vaccinations, titers, and preventative
4.25supplies for bloodborne pathogen compliance; costs to comply with the Janet B. Johnson
4.26Parents' Right To Know Act; and health, safety, and environmental management costs
4.27associated with implementing the district's health and safety program, including costs
4.28to establish and operate safety committees, in school buildings or property owned or
4.29being acquired by the district. Testing and calibration activities are permitted for existing
4.30mechanical ventilation systems at intervals no less than every five years.
4.31
4.32
4.33
4.34
4.35
5.1
5.2
5.3 Subd. 6a. Restrictions on health and safety revenue.
5.4
5.5lease purchase agreement, installment purchase agreement, or other deferred payments
5.6agreement; (2) for the construction of new facilities, remodeling of existing facilities, or
5.7the purchase of portable classrooms; (3) for interest or other financing expenses; (4) for
5.8energy efficiency projects under section 123B.65 for a building or property or part of a
5.9building or property used for postsecondary instruction or administration or for a purpose
5.10unrelated to elementary and secondary education; (5) for replacement of building materials
5.11or facilities including roof, walls, windows, internal fixtures and flooring, nonhealth and
5.12safety costs associated with demolition of facilities, structural repair or replacement of
5.13facilities due to unsafe conditions, violence prevention and facility security, ergonomics
5.14or (6) for building and heating, ventilating and air conditioning supplies, maintenance, and
5.15cleaning activities. All assessments, investigations, inventories, and support equipment
5.16not leading to the engineering or construction of a project shall be included in the health,
5.17safety, and environmental management costs in subdivision 8, paragraph (a).
5.18 Subd. 6b. Health and safety projects. (a) Health and safety revenue applications
5.19defined in subdivision 1 must be accompanied by a description of each project for which
5.20funding is being requested. Project descriptions must provide enough detail for an auditor
5.21to determine if the work qualifies for revenue. For projects other than fire and life
5.22safety projects, playground projects, and health, safety, and environmental management
5.23activities, a project description does not need to include itemized details such as material
5.24types, room locations, square feet, names, or license numbers. The commissioner shall
5.25approve only projects that comply with subdivisions 6 and 8, as defined by the Department
5.26of Education.
5.27(b) Districts may request funding for allowable projects based on self-assessments,
5.28safety committee recommendations, insurance inspections, management assistance
5.29reports, fire marshal orders, or other mandates. Notwithstanding subdivision 1, paragraph
5.30(b), and subdivision 8, paragraph (b), for projects under $500,000, individual project
5.31size for projects authorized by this subdivision is not limited and may include related
5.32work in multiple facilities. Health and safety management costs from subdivision 8 may
5.33be reported as a single project.
5.34(c) All costs directly related to a project shall be reported in the appropriate Uniform
5.35Financial Accounting and Reporting Standards (UFARS) finance code.
6.1(d) For fire and life safety egress and all other projects exceeding $20,000 and cited
6.2under Minnesota Fire Code, a fire marshal plan review is required.
6.3(e) Districts shall update project estimates with actual expenditures for each
6.4fiscal year. If a project's final cost is significantly higher than originally approved, the
6.5commissioner may request additional supporting information.
6.6 Subd. 6c. Appeals process. In the event a district is denied funding approval for
6.7a project the district believes complies with subdivisions 6 and 8, and is not otherwise
6.8excluded, a district may appeal the decision. All such requests must be in writing. The
6.9commissioner shall respond in writing. A written request must contain project number,
6.10description and amount, reason for denial, unresolved questions for consideration, reasons
6.11for reconsideration, and a specific statement of what action the district is requesting.
6.12 Subd. 7. Proration. In the event that the health and safety aid available for any year
6.13is prorated, a district having its aid prorated may levy an additional amount equal to the
6.14amount not paid by the state due to proration.
6.15 Subd. 8. Health, safety, and environmental management cost. (a) "Health, safety,
6.16and environmental management" is defined in section 123B.56.
6.17(b) A district's cost for health, safety, and environmental management is limited to
6.18the lesser of:
6.19(1) actual cost to implement their plan; or
6.20(2) an amount determined by the commissioner, based on enrollment, building
6.21age, and size.
6.22
6.23contractors, Minnesota Safety Council, or state agencies to provide management
6.24assistance to school districts for health and safety capital projects. Management assistance
6.25is the development of written programs for the identification, recognition and control of
6.26hazards, and prioritization and scheduling of district health and safety capital projects.
6.27The
6.28private contractors from the opportunity to provide any health and safety services to
6.29school districts.
6.30
6.31
6.32
6.33
6.34EFFECTIVE DATE.This section is effective July 1, 2011.
6.35 Sec. 2. HEALTH AND SAFETY POLICY.
7.1Notwithstanding Minnesota Statutes, section 123B.57, subdivision 2, a school board
7.2that has not yet adopted a health and safety policy by September 30, 2011, may submit an
7.3application for health and safety revenue for taxes payable in 2012 in the form and manner
7.4specified by the commissioner of education.
7.5EFFECTIVE DATE.This section is effective the day following final enactment.
