1.1 	A bill for an act
1.2 	relating to education finance; clarifying the types of
1.3 	projects that are eligible for funding with the
1.4 	alternative facilities bonding and levying program;
1.5 	amending Minnesota Statutes 2004, section 123B.59,
1.6 	subdivision 2.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 123B.59,
1.9 	subdivision 2, is amended to read:
1.10 		Subd. 2.Facility plan.  (a) A district qualifying under
1.11 	subdivision 1, paragraph (a), must have a ten-year facility plan
1.12 	approved by the commissioner that includes an inventory of
1.13 	projects and costs that would be eligible for:
1.14 	(1) health and safety revenue, without restriction as to
1.15 	project size;
1.16 	(2) disabled access levy; ~~and~~ 
1.17 	(3) deferred capital expenditures and maintenance projects
1.18 	necessary to prevent further erosion of facilities. For the
1.19 	purposes of this clause, erosion means a condition of physical
1.20 	deterioration.  To be eligible under this clause, projects must
1.21 	be planned to:
1.22 	(i) eliminate the source of deterioration;
1.23 	(ii) provide protection from further deterioration; and 
1.24 	(iii) repair or replace the deteriorated component of the
1.25 	facility; and 
1.26 	(4) capital expenditures of a preventive nature that reduce
2.1 	the probability of equipment breakdown or failure, extend the
2.2 	useful life of the equipment or facility, or restore the
2.3 	appearance of facilities and equipment to "like new" status.
2.4 	(b) A district qualifying under subdivision 1, paragraph
2.5 	(b), must have a five-year plan approved by the commissioner
2.6 	that includes an inventory of projects and costs for health and
2.7 	safety projects with an estimated cost of $500,000 or more per
2.8 	site that would qualify for health and safety revenue except for
2.9 	the project size limitation in section 123B.57, subdivision 1,
2.10 	paragraph (b).
2.11 	(c) The school district must:
2.12 	(1) annually update the plans;
2.13 	(2) biennially submit a facility maintenance plan; and
2.14 	(3) indicate whether the district will issue bonds to
2.15 	finance the plan or levy for the costs.