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S.F. No. 1362 - School District Bond Proceeds Use Clarification
 
Author: Senator Karin Housley
 
Prepared By: Jenna Larson, Senate Fiscal Analyst (651/296-5259)
 
Date: March 9, 2017



 

Section 1.  Uses of revenue.  Prohibits a school board from using operating capital levy funds to increase the district’s net instructional space within five years of the board’s final decision to close a schoolhouse.  Provides an exception to districts that receive approval from a majority of voters at a public referendum.  

Section 2.  Referendum required after schoolhouse closure.  Prohibits a school board from using lease levy funds to increase the district’s net instructional space within five years of the board’s final decision to close a schoolhouse.  Provides an exception to districts that receive approval from a majority of voters at a public referendum.   

Section 3.  Definitions.  Modifies the state’s ability to make payments on a school district’s defaulted debt obligation for a project that required review and comment under Minnesota Statutes, section 123B.71. The state may only make debt payments under section 126C.55 if the funds were used in a manner consistent with the project proposal submitted for review and comment. 

Section 4. Proper use of bond proceeds. Establishes that proceeds from debt obligations must be spent in a manner that aligns with the project proposal submitted for review and comment under section 123B.71

Effective date. All sections effective July 1, 2017. 

JL/syl

 
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