HF 3558

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/12/2024 12:05am

A bill for an act
relating to education finance; authorizing roof projects as part of the long-term
facilities maintenance program; appropriating money; amending Minnesota Statutes
2023 Supplement, section 123B.595, subdivisions 1, 4, 8, 10; Laws 2023, chapter
55, article 8, section 19, subdivision 6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2023 Supplement, section 123B.595, subdivision 1, is
amended to read:

Subdivision 1.

Long-term facilities maintenance revenue.

(a) Long-term facilities
maintenance revenue equals the greater of (1) the sum of (i) $380 times the district's adjusted
pupil units times the lesser of one or the ratio of the district's average building age to 35
years, plus (ii) the cost approved by the commissioner for indoor air quality, fire alarm and
suppression, and asbestos abatement projects under section 123B.57, subdivision 6, with
an estimated cost of $100,000 or more per site, plus (iii) for a school district with an approved
voluntary prekindergarten program under section 124D.151, the cost approved by the
commissioner for remodeling existing instructional space to accommodate prekindergarten
instruction new text begin , plus (iv) the cost approved by the commissioner for roof repair and replacement new text end ,
or (2) the sum of (i) the amount the district would have qualified for under Minnesota
Statutes 2014, section 123B.57, Minnesota Statutes 2014, section 123B.59, and Minnesota
Statutes 2014, section 123B.591, and (ii) for a school district with an approved voluntary
prekindergarten program under section 124D.151, the cost approved by the commissioner
for remodeling existing instructional space to accommodate prekindergarten instruction.

(b) Notwithstanding paragraph (a), a school district that qualified for eligibility under
Minnesota Statutes 2014, section 123B.59, subdivision 1, paragraph (a), for fiscal year 2010
remains eligible for funding under this section as a district that would have qualified for
eligibility under Minnesota Statutes 2014, section 123B.59, subdivision 1, paragraph (a),
for fiscal year 2017 and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2025 and later.
new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 123B.595, subdivision 4, is amended
to read:

Subd. 4.

Facilities plans.

(a) To qualify for revenue under this section, a school district
or intermediate district, not including a charter school, must have a ten-year facility plan
adopted by the school board and approved by the commissioner. The plan must include
provisions for implementing a health and safety program that complies with health, safety,
and environmental regulations and best practices, including indoor air quality management
and remediation of lead hazards. new text begin The plan must address the maintenance and repair schedule
for each school's roof for which funding is requested. new text end For planning purposes, the plan must
also address provisions for providing a gender-neutral single-user restroom at each school
site.

(b) The district must annually update the plan, submit the plan to the commissioner for
approval by July 31, and indicate whether the district will issue bonds to finance the plan
or levy for the costs.

(c) For school districts issuing bonds to finance the plan, the plan must include a debt
service schedule demonstrating that the debt service revenue required to pay the principal
and interest on the bonds each year will not exceed the projected long-term facilities revenue
for that year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2025 and later.
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 123B.595, subdivision 8, is amended
to read:

Subd. 8.

Long-term facilities maintenance equalized levy.

(a) A district's long-term
facilities maintenance equalized levy equals the district's long-term facilities maintenance
equalization revenue minus the greater of:

(1) the lesser of the district's long-term facilities maintenance equalization revenue or
the amount of aid the district received for fiscal year 2015 under Minnesota Statutes 2014,
section 123B.59, subdivision 6; or

(2) the district's long-term facilities maintenance equalization revenue times the greater
of (i) zero, or (ii) one minus the ratio of its adjusted net tax capacity per adjusted pupil unit
in the year preceding the year the levy is certified to deleted text begin 123 deleted text end new text begin ....... new text end percent of the state average
adjusted net tax capacity per adjusted pupil unit for all school districts in the year preceding
the year the levy is certified.

(b) For purposes of this subdivision, "adjusted net tax capacity" means the value described
in section 126C.01, subdivision 2, paragraph (b).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2025 and later.
new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 123B.595, subdivision 10, is amended
to read:

Subd. 10.

Allowed uses for long-term facilities maintenance revenue.

(a) A district
may use revenue under this section for any of the following:

(1) deferred capital expenditures and maintenance projects necessary to prevent further
erosion of facilities new text begin , including repair and replacement of roofs new text end ;

(2) increasing accessibility of school facilities;

(3) health and safety capital projects under section 123B.57;

(4) remodeling or constructing a gender-neutral single-user restroom at each school site;
or

(5) by board resolution, to transfer money from the general fund reserve for long-term
facilities maintenance to the debt redemption fund to pay the amounts needed to meet, when
due, principal and interest on general obligation bonds issued under subdivision 5.

(b) A charter school may use revenue under this section for any purpose related to the
school.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2025 and later.
new text end

Sec. 5.

Laws 2023, chapter 55, article 8, section 19, subdivision 6, is amended to read:

Subd. 6.

Long-term facilities maintenance equalized aid.

(a) For long-term facilities
maintenance equalized aid under Minnesota Statutes, section 123B.595, subdivision 9:

	$	108,045,000	.....	2024
	$	deleted text begin 107,894,000 deleted text end new text begin ....... new text end	.....	2025

(b) The 2024 appropriation includes $10,821,000 for 2023 and $97,224,000 for 2024.

(c) The 2025 appropriation includes $10,803,000 for 2024 and deleted text begin $97,091,000 deleted text end new text begin ....... new text end for
2025.