Bill Text: MN HF2792 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Lease levy expanded to include administrative space.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2012-04-02 - Committee report, to pass and re-refer to Education Finance [HF2792 Detail]
Download: Minnesota-2011-HF2792-Engrossed.html
1.2relating to education; expanding lease levy to include administrative space;
1.3amending Minnesota Statutes 2011 Supplement, section 126C.40, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2011 Supplement, section 126C.40, subdivision 1, is
1.6amended to read:
1.7 Subdivision 1. To lease building or land. (a) When an independent or a special
1.8school district or a group of independent or special school districts finds it economically
1.9advantageous to rent or lease a building or land for any instructional purposes or for
1.10school storage or furniture repair, and it determines that the operating capital revenue
1.11authorized under section126C.10, subdivision 13 , is insufficient for this purpose, it may
1.12apply to the commissioner for permission to make an additional capital expenditure levy
1.13for this purpose. An application for permission to levy under this subdivision must contain
1.14financial justification for the proposed levy, the terms and conditions of the proposed
1.15lease, and a description of the space to be leased and its proposed use.
1.16 (b) The criteria for approval of applications to levy under this subdivision must
1.17include: the reasonableness of the price, the appropriateness of the space to the proposed
1.18activity, the feasibility of transporting pupils to the leased building or land, conformity
1.19of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
1.20the proposed lease to the space needs and the financial condition of the district. The
1.21commissioner must not authorize a levy under this subdivision in an amount greater than
1.22the cost to the district of renting or leasing a building or land for approved purposes.
1.23The proceeds of this levy must not be used for custodial or other maintenance services.
2.1A district may not levy under this subdivision for the purpose of leasing or renting a
2.2district-owned building or site to itself.
2.3 (c) For agreements finalized after July 1, 1997, a district may not levy under this
2.4subdivision for the purpose of leasing: (1) a newly constructed building used primarily
2.5for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
2.6building addition or additions used primarily for regular kindergarten, elementary, or
2.7secondary instruction that contains more than 20 percent of the square footage of the
2.8previously existing building.
2.9 (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
2.10purpose of leasing or renting a district-owned building or site to itself only if the amount
2.11is needed by the district to make payments required by a lease purchase agreement,
2.12installment purchase agreement, or other deferred payments agreement authorized by law,
2.13and the levy meets the requirements of paragraph (c). A levy authorized for a district by
2.14the commissioner under this paragraph may be in the amount needed by the district to
2.15make payments required by a lease purchase agreement, installment purchase agreement,
2.16or other deferred payments agreement authorized by law, provided that any agreement
2.17include a provision giving the school districts the right to terminate the agreement
2.18annually without penalty.
2.19 (e) The total levy under this subdivision for a district for any year must not exceed
2.20$150 times the resident pupil units for the fiscal year to which the levy is attributable.
2.21 (f) For agreements for which a review and comment have been submitted to the
2.22Department of Education after April 1, 1998, the term "instructional purpose" as used in
2.23this subdivision excludes expenditures on stadiums.
2.24 (g) The commissioner of education may authorize a school district to exceed the
2.25limit in paragraph (e) if the school district petitions the commissioner for approval. The
2.26commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
2.27for not more than five years if the district meets the following criteria:
2.28 (1) the school district has been experiencing pupil enrollment growth in the
2.29preceding five years;
2.30 (2) the purpose of the increased levy is in the long-term public interest;
2.31 (3) the purpose of the increased levy promotes colocation of government services;
2.32and
2.33 (4) the purpose of the increased levy is in the long-term interest of the district by
2.34avoiding over construction of school facilities.
2.35 (h) A school district that is a member of an intermediate school district may include
2.36in its authority under this section the costs associated with leases of administrative and
3.1classroom space for intermediate school district programs. This authority must not exceed
3.2$43 times the adjusted marginal cost pupil units of the member districts. This authority is
3.3in addition to any other authority authorized under this section.
3.4 (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
3.52012, a district that is a member of the "Technology and Information Education Systems"
3.6data processing joint board, that finds it economically advantageous to enter into a lease
3.7agreement to finance improvements to a building for a group of school districts or special
3.8school districts for staff development purposes, may levy for its portion of lease costs
3.9attributed to the district within the total levy limit in paragraph (e). The total levy authority
3.10under this paragraph shall not exceed $632,000.
3.11(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the
3.12purpose of leasing administrative space if the district can demonstrate to the satisfaction of
3.13the commissioner that the lease cost for the administrative space is no greater than the
3.14lease cost for instructional space that the district would otherwise lease. The commissioner
3.15must deny this levy authority unless the district passes a resolution stating its intent to
3.16lease instructional space under this section if the commissioner does not grant authority
3.17under this paragraph. The resolution must also certify that the lease cost for administrative
3.18space under this paragraph is no greater than the lease cost for the district's proposed
3.19instructional lease.
1.3amending Minnesota Statutes 2011 Supplement, section 126C.40, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2011 Supplement, section 126C.40, subdivision 1, is
1.6amended to read:
1.7 Subdivision 1. To lease building or land. (a) When an independent or a special
1.8school district or a group of independent or special school districts finds it economically
1.9advantageous to rent or lease a building or land for any instructional purposes or for
1.10school storage or furniture repair, and it determines that the operating capital revenue
1.11authorized under section
1.12apply to the commissioner for permission to make an additional capital expenditure levy
1.13for this purpose. An application for permission to levy under this subdivision must contain
1.14financial justification for the proposed levy, the terms and conditions of the proposed
1.15lease, and a description of the space to be leased and its proposed use.
1.16 (b) The criteria for approval of applications to levy under this subdivision must
1.17include: the reasonableness of the price, the appropriateness of the space to the proposed
1.18activity, the feasibility of transporting pupils to the leased building or land, conformity
1.19of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
1.20the proposed lease to the space needs and the financial condition of the district. The
1.21commissioner must not authorize a levy under this subdivision in an amount greater than
1.22the cost to the district of renting or leasing a building or land for approved purposes.
1.23The proceeds of this levy must not be used for custodial or other maintenance services.
2.1A district may not levy under this subdivision for the purpose of leasing or renting a
2.2district-owned building or site to itself.
2.3 (c) For agreements finalized after July 1, 1997, a district may not levy under this
2.4subdivision for the purpose of leasing: (1) a newly constructed building used primarily
2.5for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
2.6building addition or additions used primarily for regular kindergarten, elementary, or
2.7secondary instruction that contains more than 20 percent of the square footage of the
2.8previously existing building.
2.9 (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
2.10purpose of leasing or renting a district-owned building or site to itself only if the amount
2.11is needed by the district to make payments required by a lease purchase agreement,
2.12installment purchase agreement, or other deferred payments agreement authorized by law,
2.13and the levy meets the requirements of paragraph (c). A levy authorized for a district by
2.14the commissioner under this paragraph may be in the amount needed by the district to
2.15make payments required by a lease purchase agreement, installment purchase agreement,
2.16or other deferred payments agreement authorized by law, provided that any agreement
2.17include a provision giving the school districts the right to terminate the agreement
2.18annually without penalty.
2.19 (e) The total levy under this subdivision for a district for any year must not exceed
2.20$150 times the resident pupil units for the fiscal year to which the levy is attributable.
2.21 (f) For agreements for which a review and comment have been submitted to the
2.22Department of Education after April 1, 1998, the term "instructional purpose" as used in
2.23this subdivision excludes expenditures on stadiums.
2.24 (g) The commissioner of education may authorize a school district to exceed the
2.25limit in paragraph (e) if the school district petitions the commissioner for approval. The
2.26commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
2.27for not more than five years if the district meets the following criteria:
2.28 (1) the school district has been experiencing pupil enrollment growth in the
2.29preceding five years;
2.30 (2) the purpose of the increased levy is in the long-term public interest;
2.31 (3) the purpose of the increased levy promotes colocation of government services;
2.32and
2.33 (4) the purpose of the increased levy is in the long-term interest of the district by
2.34avoiding over construction of school facilities.
2.35 (h) A school district that is a member of an intermediate school district may include
2.36in its authority under this section the costs associated with leases of administrative and
3.1classroom space for intermediate school district programs. This authority must not exceed
3.2$43 times the adjusted marginal cost pupil units of the member districts. This authority is
3.3in addition to any other authority authorized under this section.
3.4 (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
3.52012, a district that is a member of the "Technology and Information Education Systems"
3.6data processing joint board, that finds it economically advantageous to enter into a lease
3.7agreement to finance improvements to a building for a group of school districts or special
3.8school districts for staff development purposes, may levy for its portion of lease costs
3.9attributed to the district within the total levy limit in paragraph (e). The total levy authority
3.10under this paragraph shall not exceed $632,000.
3.11(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the
3.12purpose of leasing administrative space if the district can demonstrate to the satisfaction of
3.13the commissioner that the lease cost for the administrative space is no greater than the
3.14lease cost for instructional space that the district would otherwise lease. The commissioner
3.15must deny this levy authority unless the district passes a resolution stating its intent to
3.16lease instructional space under this section if the commissioner does not grant authority
3.17under this paragraph. The resolution must also certify that the lease cost for administrative
3.18space under this paragraph is no greater than the lease cost for the district's proposed
3.19instructional lease.
