Bill Text: MN SF1498 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Contracted pupil transportation expenses allocation across categories simplification
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2013-03-21 - Referred to Finance [SF1498 Detail]
Download: Minnesota-2013-SF1498-Introduced.html
1.2relating to education finance; simplifying the allocation of contracted pupil
1.3transportation expenses across categories;amending Minnesota Statutes 2012,
1.4section 123B.92, subdivision 5.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 123B.92, subdivision 5, is amended to read:
1.7 Subd. 5. District reports. (a) Each district must report data to the department as
1.8required by the department to account for transportation expenditures.
1.9(b) Salaries and fringe benefits of district employees whose primary duties are
1.10other than transportation, including central office administrators and staff, building
1.11administrators and staff, teachers, social workers, school nurses, and instructional aides,
1.12must not be included in a district's transportation expenditures, except that a district may
1.13include salaries and benefits according to paragraph (c) for (1) an employee designated
1.14as the district transportation director, (2) an employee providing direct support to the
1.15transportation director, or (3) an employee providing direct transportation services such as
1.16a bus driver or bus aide.
1.17(c) Salaries and fringe benefits of the district employees listed in paragraph (b),
1.18clauses (1), (2), and (3), who work part time in transportation and part time in other areas
1.19must not be included in a district's transportation expenditures unless the district maintains
1.20documentation of the employee's time spent on pupil transportation matters in the form
1.21and manner prescribed by the department.
1.22(d) A school district that contracts for transportation service may allocate
1.23transportation expense to transportation categories based upon contract rates. Districts
1.24may only allocate transportation expense to transportation categories based upon contract
2.1rates if contract rates are reasonably consistent on a cost-per-hour, cost-per-mile,
2.2cost-per-route, or cost-per-student basis. In order to allocate transportation expense based
2.3upon contract rates, a school district must be able to demonstrate that variances in the
2.4application of transportation cost basis rates are appropriate.
2.5(e) Pupil transportation expenditures, excluding expenditures for capital outlay,
2.6leased buses, student board and lodging, crossing guards, and aides on buses, must be
2.7allocated among transportation categories based on cost-per-mile or cost-per-student
2.8regardless of whether the transportation services are provided on district-owned or
2.9contractor-owned school buses. Expenditures for school bus driver salaries and fringe
2.10benefits may either be directly charged to the appropriate transportation category or may
2.11be allocated among transportation categories based on cost-per-mile or cost-per-student.
2.12Expenditures by private contractors or individuals who provide transportation exclusively
2.13in one transportation category must be charged directly to the appropriate transportation
2.14category. Transportation services provided by contractor-owned school bus companies
2.15incorporated under different names but owned by the same individual or group of
2.16individuals must be treated as the same company for cost allocation purposes.
2.17(e) Notwithstanding paragraph (d), districts contracting for transportation services
2.18are exempt from the standard cost allocation method for authorized and nonauthorized
2.19transportation categories if the district: (1) bids its contracts separately for authorized and
2.20nonauthorized transportation categories and for special transportation separate from regular
2.21and excess transportation; (2) receives bids or quotes from more than one vendor for these
2.22transportation categories; and (3) the district's cost-per-mile does not vary more than ten
2.23percent among categories, excluding salaries and fringe benefits of bus aides. If the costs
2.24reported by the district for contractor-owned operations vary by more than ten percent
2.25among categories, the department shall require the district to reallocate its transportation
2.26costs, excluding salaries and fringe benefits of bus aides, among all categories.
2.27(f) The department may reclassify a school district's transportation expense from
2.28based upon contract rates to based upon cost-per-mile or cost-per-student for state aid
2.29purposes if the school district transportation expense reporting is inconsistent with similar
2.30school districts and if the school district is not able to demonstrate that variances in the
2.31application of transportation cost basis rates are appropriate.
2.32EFFECTIVE DATE.This section is effective for revenue for fiscal years 2014
2.33and later.
1.3transportation expenses across categories;amending Minnesota Statutes 2012,
1.4section 123B.92, subdivision 5.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 123B.92, subdivision 5, is amended to read:
1.7 Subd. 5. District reports. (a) Each district must report data to the department as
1.8required by the department to account for transportation expenditures.
1.9(b) Salaries and fringe benefits of district employees whose primary duties are
1.10other than transportation, including central office administrators and staff, building
1.11administrators and staff, teachers, social workers, school nurses, and instructional aides,
1.12must not be included in a district's transportation expenditures, except that a district may
1.13include salaries and benefits according to paragraph (c) for (1) an employee designated
1.14as the district transportation director, (2) an employee providing direct support to the
1.15transportation director, or (3) an employee providing direct transportation services such as
1.16a bus driver or bus aide.
1.17(c) Salaries and fringe benefits of the district employees listed in paragraph (b),
1.18clauses (1), (2), and (3), who work part time in transportation and part time in other areas
1.19must not be included in a district's transportation expenditures unless the district maintains
1.20documentation of the employee's time spent on pupil transportation matters in the form
1.21and manner prescribed by the department.
1.22(d) A school district that contracts for transportation service may allocate
1.23transportation expense to transportation categories based upon contract rates. Districts
1.24may only allocate transportation expense to transportation categories based upon contract
2.1rates if contract rates are reasonably consistent on a cost-per-hour, cost-per-mile,
2.2cost-per-route, or cost-per-student basis. In order to allocate transportation expense based
2.3upon contract rates, a school district must be able to demonstrate that variances in the
2.4application of transportation cost basis rates are appropriate.
2.5(e) Pupil transportation expenditures, excluding expenditures for capital outlay,
2.6leased buses, student board and lodging, crossing guards, and aides on buses, must be
2.7allocated among transportation categories based on cost-per-mile or cost-per-student
2.8regardless of whether the transportation services are provided on district-owned or
2.9contractor-owned school buses. Expenditures for school bus driver salaries and fringe
2.10benefits may either be directly charged to the appropriate transportation category or may
2.11be allocated among transportation categories based on cost-per-mile or cost-per-student.
2.12Expenditures by private contractors or individuals who provide transportation exclusively
2.13in one transportation category must be charged directly to the appropriate transportation
2.14category. Transportation services provided by contractor-owned school bus companies
2.15incorporated under different names but owned by the same individual or group of
2.16individuals must be treated as the same company for cost allocation purposes.
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2.27(f) The department may reclassify a school district's transportation expense from
2.28based upon contract rates to based upon cost-per-mile or cost-per-student for state aid
2.29purposes if the school district transportation expense reporting is inconsistent with similar
2.30school districts and if the school district is not able to demonstrate that variances in the
2.31application of transportation cost basis rates are appropriate.
2.32EFFECTIVE DATE.This section is effective for revenue for fiscal years 2014
2.33and later.
