1.1 A bill for an act 1.2 relating to education finance; authorizing roof projects as part of the long-term 1.3 facilities maintenance program; appropriating money; amending Minnesota Statutes 1.4 2024, section 123B.595, subdivisions 1, 4, 8, 10. 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6 Section 1. Minnesota Statutes 2024, section 123B.595, subdivision 1, is amended to read: 1.7 Subdivision 1.Long-term facilities maintenance revenue.(a) Long-term facilities 1.8maintenance revenue equals the greater of (1) the sum of (i) $380 times the district's adjusted 1.9pupil units times the lesser of one or the ratio of the district's average building age to 35 1.10years, plus (ii) the cost approved by the commissioner for indoor air quality, fire alarm and 1.11suppression, and asbestos abatement projects under section 123B.57, subdivision 6, and 1.12roof repair and replacement with an estimated cost of $100,000 or more per site, plus (iii) 1.13for a school district with an approved voluntary prekindergarten program under section 1.14142D.08, the cost approved by the commissioner for remodeling existing instructional space 1.15to accommodate prekindergarten instruction, or (2) the sum of (i) the amount the district 1.16would have qualified for under Minnesota Statutes 2014, section 123B.57, Minnesota 1.17Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591, and (ii) 1.18for a school district with an approved voluntary prekindergarten program under section 1.19142D.08, the cost approved by the commissioner for remodeling existing instructional space 1.20to accommodate prekindergarten instruction. 1.21 (b) Notwithstanding paragraph (a), a school district that qualified for eligibility under 1.22Minnesota Statutes 2014, section 123B.59, subdivision 1, paragraph (a), for fiscal year 2010 1.23remains eligible for funding under this section as a district that would have qualified for 1Section 1. 25-02291 as introduced01/14/25 REVISOR CR/LJ SENATE STATE OF MINNESOTA S.F. No. 1198NINETY-FOURTH SESSION (SENATE AUTHORS: HAUSCHILD, Farnsworth, Kupec, Rarick and Eichorn) OFFICIAL STATUSD-PGDATE Introduction and first reading02/10/2025 Referred to Education Finance 2.1eligibility under Minnesota Statutes 2014, section 123B.59, subdivision 1, paragraph (a), 2.2for fiscal year 2017 and later. 2.3 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2027 and later. 2.4 Sec. 2. Minnesota Statutes 2024, section 123B.595, subdivision 4, is amended to read: 2.5 Subd. 4.Facilities plans.(a) To qualify for revenue under this section, a school district 2.6or intermediate district, not including a charter school, must have a ten-year facility plan 2.7adopted by the school board and approved by the commissioner. The plan must include 2.8provisions for implementing a health and safety program that complies with health, safety, 2.9and environmental regulations and best practices, including indoor air quality management 2.10and remediation of lead hazards. The plan must address the maintenance and repair schedule 2.11for each school's roof for which funding is requested. For planning purposes, the plan must 2.12also address provisions for providing a gender-neutral single-user restroom at each school 2.13site. 2.14 (b) The district must annually update the plan, submit the plan to the commissioner for 2.15approval by July 31, and indicate whether the district will issue bonds to finance the plan 2.16or levy for the costs. 2.17 (c) For school districts issuing bonds to finance the plan, the plan must include a debt 2.18service schedule demonstrating that the debt service revenue required to pay the principal 2.19and interest on the bonds each year will not exceed the projected long-term facilities revenue 2.20for that year. 2.21 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2027 and later. 2.22 Sec. 3. Minnesota Statutes 2024, section 123B.595, subdivision 8, is amended to read: 2.23 Subd. 8.Long-term facilities maintenance equalized levy.(a) A district's long-term 2.24facilities maintenance equalized levy equals the district's long-term facilities maintenance 2.25equalization revenue minus the greater of: 2.26 (1) the lesser of the district's long-term facilities maintenance equalization revenue or 2.27the amount of aid the district received for fiscal year 2015 under Minnesota Statutes 2014, 2.28section 123B.59, subdivision 6; or 2.29 (2) the district's long-term facilities maintenance equalization revenue times the greater 2.30of (i) zero, or (ii) one minus the ratio of its adjusted net tax capacity per adjusted pupil unit 2.31in the year preceding the year the levy is certified to 123 ....... percent of the state average 2Sec. 3. 25-02291 as introduced01/14/25 REVISOR CR/LJ 3.1adjusted net tax capacity per adjusted pupil unit for all school districts in the year preceding 3.2the year the levy is certified. 3.3 (b) For purposes of this subdivision, "adjusted net tax capacity" means the value described 3.4in section 126C.01, subdivision 2, paragraph (b). 3.5 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2027 and later. 3.6 Sec. 4. Minnesota Statutes 2024, section 123B.595, subdivision 10, is amended to read: 3.7 Subd. 10.Allowed uses for long-term facilities maintenance revenue.(a) A district 3.8may use revenue under this section for any of the following: 3.9 (1) deferred capital expenditures and maintenance projects necessary to prevent further 3.10erosion of facilities, including repair and replacement of roofs; 3.11 (2) increasing accessibility of school facilities; 3.12 (3) health and safety capital projects under section 123B.57; 3.13 (4) remodeling or constructing a gender-neutral single-user restroom at each school site; 3.14or 3.15 (5) by board resolution, to transfer money from the general fund reserve for long-term 3.16facilities maintenance to the debt redemption fund to pay the amounts needed to meet, when 3.17due, principal and interest on general obligation bonds issued under subdivision 5. 3.18 (b) A charter school may use revenue under this section for any purpose related to the 3.19school. 3.20 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2027 and later. 3.21 Sec. 5. APPROPRIATIONS. 3.22 Subdivision 1.Department of Education.The sums indicated in this section are 3.23appropriated from the general fund to the Department of Education for the fiscal years 3.24designated. 3.25 Subd. 2.Long-term facilities maintenance equalized aid.(a) For long-term facilities 3.26maintenance equalized aid under Minnesota Statutes, section 123B.595, subdivision 9: 2026............3.27 $ 2027............3.28 $ 3.29 (b) The 2026 appropriation includes $....... for 2025 and $....... for 2026. 3Sec. 5. 25-02291 as introduced01/14/25 REVISOR CR/LJ 4.1 (c) The 2027 appropriation includes $....... for 2026 and $....... for 2027. 4Sec. 5. 25-02291 as introduced01/14/25 REVISOR CR/LJ