HF 5326

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/08/2024 02:16pm

A bill for an act
relating to education finance; authorizing certain lunchroom furniture costs in the
school food service fund; amending Minnesota Statutes 2023 Supplement, section
124D.111, subdivision 3.

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

Section 1.

Minnesota Statutes 2023 Supplement, 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, and other expenses involving the preparing
of meals or the kitchen section of the lunchroom may be charged to the food service fund
or to the general fund of the district. The costs of lunchroom supervision, lunchroom custodial
services, lunchroom utilities, new text begin lunchroom furniture, new text end 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, new text begin lunchroom furniture, new text end and other
administrative costs of the food service program charged to the general fund according to
paragraph (c) 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.

new text begin (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 end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2024 and later.
new text end