SF 5121

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/21/2024 09:16am

A bill for an act
relating to education finance; amending the allowed uses of long-term facilities
maintenance revenue; amending Minnesota Statutes 2022, section 123B.595, by
adding a subdivision; Minnesota Statutes 2023 Supplement, section 123B.595,
subdivisions 4, 10, 11.

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

Section 1.

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 may include provisions for enhancing school
safety through physical modifications to school facilities as described in subdivision 4a. 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 in fiscal year 2025 and later.
new text end

Sec. 2.

Minnesota Statutes 2022, section 123B.595, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin School safety facility enhancements. new text end

new text begin A school district may include in its
facilities plan a school safety facilities plan. School safety projects may include remodeling
and new construction for school security enhancements and equipment and facility
modifications related to violence prevention and facility security. Projects authorized may
be included in the plan until the projects are complete.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

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;

(2) increasing accessibility of school facilities;

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

(4) new text begin school safety facility enhancements authorized under subdivision 4a;
new text end

new text begin (5) new text end remodeling or constructing a gender-neutral single-user restroom at each school site;
or

deleted text begin (5) deleted text end new text begin (6) new text end 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 in fiscal year 2025 and later.
new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 123B.595, subdivision 11, is amended
to read:

Subd. 11.

Restrictions on long-term facilities maintenance revenue.

Notwithstanding
subdivision 10, long-term facilities maintenance revenue may not be used:

(1) for the construction of new facilities, remodeling of existing facilities, or the purchase
of portable classrooms, except for the costs associated with constructing or remodeling
existing facilities to include at least one gender-neutral single-user restroom authorized
under subdivision 10;

(2) to finance a lease purchase agreement, installment purchase agreement, or other
deferred payments agreement;

(3) for energy-efficiency projects under section 123B.65, for a building or property or
part of a building or property used for postsecondary instruction or administration, or for a
purpose unrelated to elementary and secondary education; or

(4) for deleted text begin violence prevention and facility security, deleted text end ergonomics deleted text begin , deleted text end or emergency
communication devices.

new text begin EFFECTIVE DATE. new text end

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