Bill Text: MN SF1971 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Food service equipment purchased from food service fund approval process simplification
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2012-03-13 - HF substituted in committee HF2376 [SF1971 Detail]
Download: Minnesota-2011-SF1971-Introduced.html
1.2relating to education finance; simplifying the approval process for food service
1.3equipment purchased from the food service fund;amending Minnesota Statutes
1.42010, section 124D.111, subdivision 3.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 124D.111, subdivision 3, is amended to
1.7read:
1.8 Subd. 3. School food service fund. (a) The expenses described in this subdivision
1.9must be recorded as provided in this subdivision.
1.10(b) In each district, the expenses for a school food service program for pupils must
1.11be attributed to a school food service fund. Under a food service program, the school
1.12food service may prepare or serve milk, meals, or snacks in connection with school or
1.13community service activities.
1.14(c) Revenues and expenditures for food service activities must be recorded in the
1.15food service fund. The costs of processing applications, accounting for meals, preparing
1.16and serving food, providing kitchen custodial services, and other expenses involving the
1.17preparing of meals or the kitchen section of the lunchroom may be charged to the food
1.18service fund or to the general fund of the district. The costs of lunchroom supervision,
1.19lunchroom custodial services, lunchroom utilities, and other administrative costs of the
1.20food service program must be charged to the general fund.
1.21That portion of superintendent and fiscal manager costs that can be documented as
1.22attributable to the food service program may be charged to the food service fund provided
1.23that the school district does not employ or contract with a food service director or other
1.24individual who manages the food service program, or food service management company.
2.1If the cost of the superintendent or fiscal manager is charged to the food service fund,
2.2the charge must be at a wage rate not to exceed the statewide average for food service
2.3directors as determined by the department.
2.4(d) Capital expenditures for the purchase of food service equipment must be made
2.5from the general fund and not the food service fund, unlesstwo conditions apply:
2.6(1) the unreserved balance in the food service fund at the end of the last fiscal year is
2.7greater than the cost of the equipment to be purchased; and.
2.8(2) the department has approved the purchase of the equipment.
2.9(e) If thetwo conditions condition set out in paragraph (d) apply applies, the
2.10equipment may be purchased from the food service fund.
2.11(f) If a deficit in the food service fund exists at the end of a fiscal year, and the deficit
2.12is not eliminated by revenues from food service operations in the next fiscal year, then the
2.13deficit must be eliminated by a permanent fund transfer from the general fund at the end of
2.14that second fiscal year. However, if a district contracts with a food service management
2.15company during the period in which the deficit has accrued, the deficit must be eliminated
2.16by a payment from the food service management company.
2.17(g) Notwithstanding paragraph (f), a district may incur a deficit in the food service
2.18fund for up to three years without making the permanent transfer if the district submits
2.19to the commissioner by January 1 of the second fiscal year a plan for eliminating that
2.20deficit at the end of the third fiscal year.
2.21(h) If a surplus in the food service fund exists at the end of a fiscal year for three
2.22successive years, a district may recode for that fiscal year the costs of lunchroom
2.23supervision, lunchroom custodial services, lunchroom utilities, and other administrative
2.24costs of the food service program charged to the general fund according to paragraph (c)
2.25and charge those costs to the food service fund in a total amount not to exceed the amount
2.26of surplus in the food service fund.
2.27EFFECTIVE DATE.This section is effective for food service equipment purchases
2.28made on or after July 1, 2012.
1.3equipment purchased from the food service fund;amending Minnesota Statutes
1.42010, section 124D.111, subdivision 3.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 124D.111, subdivision 3, is amended to
1.7read:
1.8 Subd. 3. School food service fund. (a) The expenses described in this subdivision
1.9must be recorded as provided in this subdivision.
1.10(b) In each district, the expenses for a school food service program for pupils must
1.11be attributed to a school food service fund. Under a food service program, the school
1.12food service may prepare or serve milk, meals, or snacks in connection with school or
1.13community service activities.
1.14(c) Revenues and expenditures for food service activities must be recorded in the
1.15food service fund. The costs of processing applications, accounting for meals, preparing
1.16and serving food, providing kitchen custodial services, and other expenses involving the
1.17preparing of meals or the kitchen section of the lunchroom may be charged to the food
1.18service fund or to the general fund of the district. The costs of lunchroom supervision,
1.19lunchroom custodial services, lunchroom utilities, and other administrative costs of the
1.20food service program must be charged to the general fund.
1.21That portion of superintendent and fiscal manager costs that can be documented as
1.22attributable to the food service program may be charged to the food service fund provided
1.23that the school district does not employ or contract with a food service director or other
1.24individual who manages the food service program, or food service management company.
2.1If the cost of the superintendent or fiscal manager is charged to the food service fund,
2.2the charge must be at a wage rate not to exceed the statewide average for food service
2.3directors as determined by the department.
2.4(d) Capital expenditures for the purchase of food service equipment must be made
2.5from the general fund and not the food service fund, unless
2.6
2.7greater than the cost of the equipment to be purchased
2.8
2.9(e) If the
2.10equipment may be purchased from the food service fund.
2.11(f) If a deficit in the food service fund exists at the end of a fiscal year, and the deficit
2.12is not eliminated by revenues from food service operations in the next fiscal year, then the
2.13deficit must be eliminated by a permanent fund transfer from the general fund at the end of
2.14that second fiscal year. However, if a district contracts with a food service management
2.15company during the period in which the deficit has accrued, the deficit must be eliminated
2.16by a payment from the food service management company.
2.17(g) Notwithstanding paragraph (f), a district may incur a deficit in the food service
2.18fund for up to three years without making the permanent transfer if the district submits
2.19to the commissioner by January 1 of the second fiscal year a plan for eliminating that
2.20deficit at the end of the third fiscal year.
2.21(h) If a surplus in the food service fund exists at the end of a fiscal year for three
2.22successive years, a district may recode for that fiscal year the costs of lunchroom
2.23supervision, lunchroom custodial services, lunchroom utilities, and other administrative
2.24costs of the food service program charged to the general fund according to paragraph (c)
2.25and charge those costs to the food service fund in a total amount not to exceed the amount
2.26of surplus in the food service fund.
2.27EFFECTIVE DATE.This section is effective for food service equipment purchases
2.28made on or after July 1, 2012.
