1.1                          A bill for an act 
  1.2             relating to education finance; modifying the debt 
  1.3             service equalization aid program to encourage sound 
  1.4             historic preservation and cost-efficient remodeling 
  1.5             projects; modifying the review and comment process; 
  1.6             amending Minnesota Statutes 2002, sections 123B.02, 
  1.7             subdivision 8; 123B.53, subdivision 5; 123B.71, by 
  1.8             adding a subdivision; Minnesota Statutes 2003 
  1.9             Supplement, section 123B.71, subdivision 1; proposing 
  1.10            coding for new law in Minnesota Statutes, chapter 211B.
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 2002, section 123B.02, 
  1.13  subdivision 8, is amended to read: 
  1.14     Subd. 8.  [LEVY.] The board must provide by levy of tax 
  1.15  necessary funds for the conduct of schools, the payment of 
  1.16  indebtedness, and all proper expenses of the district, 
  1.17  consistent with section 211B.095. 
  1.18     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
  1.19     Sec. 2.  Minnesota Statutes 2002, section 123B.53, 
  1.20  subdivision 5, is amended to read: 
  1.21     Subd. 5.  [EQUALIZED DEBT SERVICE LEVY.] (a) The equalized 
  1.22  debt service levy of a district equals the sum of the first tier 
  1.23  equalized debt service levy and the second tier equalized debt 
  1.24  service levy. 
  1.25     (b) A district's first tier equalized debt service levy 
  1.26  equals the district's first tier debt service equalization 
  1.27  revenue times the lesser of one or the ratio of: 
  1.28     (1) the quotient derived by dividing the adjusted net tax 
  2.1   capacity of the district for the year before the year the levy 
  2.2   is certified by the adjusted pupil units in the district for the 
  2.3   school year ending in the year prior to the year the levy is 
  2.4   certified; to 
  2.5      (2) $3,200. 
  2.6      (c) A district's second tier equalized debt service levy 
  2.7   equals the district's second tier debt service equalization 
  2.8   revenue times the lesser of one or the ratio of: 
  2.9      (1) the quotient derived by dividing the adjusted net tax 
  2.10  capacity of the district for the year before the year the levy 
  2.11  is certified by the adjusted pupil units in the district for the 
  2.12  school year ending in the year prior to the year the levy is 
  2.13  certified; to 
  2.14     (2) $8,000. 
  2.15     (d) Notwithstanding paragraph (b), the first tier equalized 
  2.16  debt service levy for a school district that is remodeling an 
  2.17  existing facility and has demonstrated to the commissioner's 
  2.18  satisfaction under section 123B.71, subdivision 1, that the 
  2.19  overall project costs will be significantly less than the cost 
  2.20  of building a new facility equals the district's first tier debt 
  2.21  service equalization revenue times the lesser of one or the 
  2.22  ratio of: 
  2.23     (1) the quotient derived by dividing the adjusted net tax 
  2.24  capacity of the district for the year before the year the levy 
  2.25  is certified by the adjusted pupil units in the district for the 
  2.26  school year ending in the year prior to the year the levy is 
  2.27  certified; to 
  2.28     (2) $8,000. 
  2.29     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
  2.30  payable in 2005 and later. 
  2.31     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
  2.32  123B.71, subdivision 1, is amended to read: 
  2.33     Subdivision 1.  [CONSULTATION.] (a) A school district shall 
  2.34  consult with the commissioner of education before developing any 
  2.35  plans and specifications to construct, remodel, or improve the 
  2.36  building or site of an educational facility for which the 
  3.1   estimated cost exceeds $250,000.  This consultation shall occur 
  3.2   before a referendum for bonds, solicitation for bids, or use of 
  3.3   capital expenditure facilities revenue according to section 
  3.4   126C.10, subdivision 14, clause (2).  
  3.5      (b) The commissioner may examine and evaluate plans to 
  3.6   remodel a facility and compare the expected cost of remodeling 
  3.7   against the likely costs of new construction according to 
  3.8   subdivision 9a.  The costs of new construction must include 
  3.9   ancillary costs including the costs of new athletic fields, 
  3.10  playgrounds, and parking lots.  
  3.11     (c) The commissioner may require the district to 
  3.12  participate in a management assistance plan before conducting a 
  3.13  review and comment on the project. 
  3.14     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
  3.15     Sec. 4.  Minnesota Statutes 2002, section 123B.71, is 
  3.16  amended by adding a subdivision to read: 
  3.17     Subd. 9a.  [REMODELING A BUILDING SITE.] In evaluating the 
  3.18  information submitted under subdivision 9, the commissioner must 
  3.19  remain neutral on whether a school board should proceed with new 
  3.20  construction instead of remodeling an existing facility.  The 
  3.21  commissioner may help the school board examine costs and 
  3.22  benefits of each proposal using the best possible estimate of 
  3.23  construction costs for each project.  If the commissioner 
  3.24  determines through a cost benefit analysis that a remodeling 
  3.25  project is comparable to or superior to new construction, that 
  3.26  its overall costs are significantly less than the cost of new 
  3.27  construction, and that the projected state-aid costs for the 
  3.28  remodeling project at the enhanced level of debt service 
  3.29  equalization aid are less than those for new construction, the 
  3.30  commissioner may qualify the project for enhanced debt service 
  3.31  equalization aid according to section 123B.02, subdivision 8. 
  3.32     <b>[EFFECTIVE DATE.]</b> This section is effective for plans 
  3.33  submitted to the department on or after July 1, 2004. 
  3.34     Sec. 5.  [211B.095] [PROHIBITED USE OF PUBLIC FUNDS.] 
  3.35     The state or a political subdivision may not use public 
  3.36  funds to promote or defeat a ballot question.  Nothing in this 
  4.1   section prohibits the state or a political subdivision from 
  4.2   disseminating factual information or a description of the 
  4.3   alternatives presented in a ballot question, provided that the 
  4.4   disseminated material does not advocate a vote in favor of, or 
  4.5   opposition to, the ballot question. 
  4.6      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
  4.7      Sec. 6.  [211B.0951] [REMEDY.] 
  4.8      Subdivision 1.  [PERSONAL LIABILITY FOR $300 FINE.] A 
  4.9   person who intentionally violates section 211B.095 is subject to 
  4.10  personal liability in the form of a civil penalty in an amount 
  4.11  not to exceed $300 for a single occurrence, which may not be 
  4.12  paid by the public body.  
  4.13     Subd. 2.  [WHO MAY BRING ACTION; WHERE.] An action to 
  4.14  enforce the penalty in subdivision 1 may be brought by any 
  4.15  person in a court of competent jurisdiction where the 
  4.16  administrative office of the governing body is located. 
  4.17     Subd. 3.  [FORFEIT OFFICE IF THREE VIOLATIONS.] (a) If a 
  4.18  person has been found to have intentionally violated section 
  4.19  211B.095 in three or more actions brought under this chapter 
  4.20  involving the same governing body, the person shall forfeit any 
  4.21  further right to serve on the governing body or in any other 
  4.22  capacity with the public body for a period of time equal to the 
  4.23  term of office the person was then serving.  
  4.24     (b) The court determining the merits of an action in 
  4.25  connection with an alleged third violation shall receive 
  4.26  evidence in connection with the violation.  If the court finds 
  4.27  that the occurrence is a separate third violation, unrelated to 
  4.28  the previous violations, it must issue its order declaring the 
  4.29  position vacant and notify the appointing authority or clerk of 
  4.30  the governing body.  As soon as practicable, the appointing 
  4.31  authority or the governing body shall fill the position in the 
  4.32  same manner as any other vacancy. 
  4.33     Subd. 4.  [OTHER REMEDIES; REQUIREMENTS; LIMITS.] (a) In 
  4.34  addition to other remedies, the court may award reasonable 
  4.35  costs, disbursements, and attorney fees of up to $13,000 to any 
  4.36  party in an action under this section. 
  5.1      (b) The court may award costs and attorney fees to a 
  5.2   defendant only if the court finds that the action under section 
  5.3   211B.095 was frivolous and without merit. 
  5.4      (c) A public body may pay any costs, disbursements, or 
  5.5   attorney fees incurred by or awarded against any of its members 
  5.6   in an action under section 211B.095. 
  5.7      (d) No monetary penalties or attorney fees may be awarded 
  5.8   against a member of a public body unless the court finds that 
  5.9   there was a specific intent to violate this chapter. 
  5.10     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004.