SF 2576

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/21/2025 09:05 a.m.

A bill for an act
relating to education; providing building lease aid for charter schools; amending
Minnesota Statutes 2024, section 124E.22.

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

Section 1.

Minnesota Statutes 2024, section 124E.22, is amended to read:

124E.22 BUILDING LEASE AID.

(a) When a charter school finds it economically advantageous to rent or lease a building
or land for any instructional purpose and it determines that the total operating capital revenue
under section 126C.10, subdivision 13, is insufficient for this purpose, it may apply to the
commissioner for building lease aid in the form and manner prescribed by the commissioner.
The commissioner must review and either approve or deny a lease aid application using at
least the following criteria:

(1) the reasonableness of the price based on current market values;

(2) the extent to which the lease conforms to applicable state laws and rules; and

(3) the appropriateness of the proposed lease in the context of the space needs and
financial circumstances of the charter school. The commissioner must approve aid only for
a facility lease that has (i) a sum certain annual cost and (ii) a closure clause to relieve the
charter school of its lease obligations at the time the charter contract is terminated or not
renewed. The closure clause under item (ii) must not be constructed or construed to relieve
the charter school of its lease obligations in effect before the charter contract is terminated
or not renewed.

(b) A charter school must not use the building lease aid it receives for custodial,
maintenance service, utility, or other operating costs.

(c) The amount of annual building lease aid for a charter school shall not exceed the
lesser of (1) 90 percent of the approved cost or (2) the product of the charter school building
lease aid pupil units served for the current school year times deleted text begin $1,314 deleted text end new text begin $1,606 new text end .

new text begin (d) The building lease aid amount defined in paragraph (c) for fiscal year 2026 and later
must be rounded to the nearest whole dollar and increase by a percentage matched with
increases in the formula allowance for the previous fiscal year calculated in section 126C.10,
subdivision 2, paragraph (b).
new text end

deleted text begin (d) deleted text end new text begin (e) new text end A charter school's building lease aid pupil units equals the sum of the charter
school pupil units under section 126C.05 and the pupil units for the portion of the day that
the charter school's enrolled students are participating in the Postsecondary Enrollment
Options Act under section 124D.09 and not otherwise included in the pupil count under
section 126C.05.