SF 2965

Introduction - 94th Legislature (2025 - 2026)

Posted on 07/09/2025 01:55 p.m.

A bill for an act
relating to education finance; authorizing certain expenditures from the school
food service fund; amending Minnesota Statutes 2024, section 124D.111,
subdivision 3.

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

Section 1.

Minnesota Statutes 2024, section 124D.111, subdivision 3, is amended to read:

Subd. 3.

School food service fund.

(a) The expenses described in this subdivision must
be recorded as provided in this subdivision.

(b) In each district, the expenses for a school food service program for pupils must be
attributed to a school food service fund. Under a food service program, the school food
service may prepare or serve milk, meals, or snacks in connection with school or community
service activities.

(c) Revenues and expenditures for food service activities must be recorded in the food
service fund. The costs of processing applications, accounting for meals, preparing and
serving food, providing kitchen custodial services, new text begin waste management, new text end and other expenses
involving the preparing of meals or the kitchen deleted text begin section deleted text end new text begin or serving area sections new text end of the
lunchroom may be charged to the food service fund or to the general fund of the district.
new text begin For the purposes of this paragraph, the costs of serving food include the costs of technology
and systems related to serving line automation and meal tracking. new text end The costs of lunchroom
supervision, lunchroom custodial services, lunchroom utilities, lunchroom furniture, and
other administrative costs of the food service program must be charged to the general fund.

That portion of superintendent and fiscal manager costs that can be documented as
attributable to the food service program may be charged to the food service fund provided
that the school district does not employ or contract with a food service director or other
individual who manages the food service program, or food service management company.
If the cost of the superintendent or fiscal manager is charged to the food service fund, the
charge must be at a wage rate not to exceed the statewide average for food service directors
as determined by the department.

(d) Capital expenditures for the purchase of food service equipment must be made from
the general fund and not the food service fund, unless the restricted balance in the food
service fund at the end of the last fiscal year is greater than the cost of the equipment to be
purchased.

(e) If the condition set out in paragraph (d) applies, the equipment may be purchased
from the food service fund.

(f) If a deficit in the food service fund exists at the end of a fiscal year, and the deficit
is not eliminated by revenues from food service operations in the next fiscal year, then the
deficit must be eliminated by a permanent fund transfer from the general fund at the end of
that second fiscal year. However, if a district contracts with a food service management
company during the period in which the deficit has accrued, the deficit must be eliminated
by a payment from the food service management company.

(g) Notwithstanding paragraph (f), a district may incur a deficit in the food service fund
for up to three years without making the permanent transfer if the district submits to the
commissioner by January 1 of the second fiscal year a plan for eliminating that deficit at
the end of the third fiscal year.

(h) If a surplus in the food service fund exists at the end of a fiscal year for three
successive years, a district may recode for that fiscal year the costs of lunchroom supervision,
lunchroom custodial services, lunchroom utilities, lunchroom furniture, and other
administrative costs of the food service program charged to the general fund according to
paragraph (c) new text begin , or costs under paragraph (j), new text end and charge those costs to the food service fund
in a total amount not to exceed the amount of surplus in the food service fund.

(i) For purposes of this subdivision, "lunchroom furniture" means tables and chairs
regularly used by pupils in a lunchroom from which they may consume milk, meals, or
snacks in connection with school or community service activities.

new text begin (j) The costs of kitchen, serving area, lunchroom, and food storage remodeling or
reconfiguration may not be charged to the food service fund, except as provided under
paragraph (h). The costs of plumbing, electrical, air handling, ventilation, or other building
utility work necessary to operate equipment essential for food service activities or to
remediate food service-related health and safety hazards may not be charged to the food
service fund, except as provided under paragraph (h).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2026 and later.
new text end