1.1 	A bill for an act
1.2 	relating to education finance; placing a one-year moratorium on certain school 
1.3 	district building projects for school districts serving fewer than 500 pupils.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. ONE-YEAR MORATORIUM; SMALL SCHOOL BUILDING 
1.6 	PROJECTS.
 1.7 		Subdivision 1.Review and comment. For purposes of this section, a "small 
1.8 	school district" means a school district that served fewer than 500 pupils in average 
1.9 	daily membership in fiscal year 2005. Notwithstanding any law to the contrary, 
1.10 	the commissioner of education must not issue a positive review and comment or 
1.11 	an unfavorable review and comment to a small school district for a school district 
1.12 	construction project under Minnesota Statutes, section 123B.70, for one year following 
1.13 	the effective date of this section.
1.14 		Subd. 2. Sale and issuance of bonds prohibited. A small school district must not 
1.15 	sell or issue bonds for school facilities purposes under Minnesota Statutes, chapter 475, 
1.16 	for one year following the effective date of this section.
1.17 		Subd. 3.Exemption from prohibition. A small school district that receives a grant 
1.18 	from the state's bond proceeds fund according to a law passed in calendar year 2006 is not 
1.19 	subject to the provisions of subdivision 1 or 2.
1.20 		Subd. 4.Study and report. The commissioner of education must examine the 
1.21 	condition of school buildings in small school districts and evaluate the opportunities 
1.22 	and impediments to small school districts efficiently providing school facilities to their 
1.23 	students. The study must also examine the current state incentives for school district 
1.24 	consolidation and school building projects. The study must also investigate the link 
2.1 	between newer school district facilities and student performance. The commissioner must 
2.2 	report the results of the study by January 15, 2007, to the house of representatives and 
2.3 	senate committees having jurisdiction over kindergarten through grade 12 education.

2.4 	EFFECTIVE DATE. This section is effective the day following final enactment.