| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to education finance; authorizing roof projects as part of the long-term |
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| 3 | 3 | | 1.3 facilities maintenance program; appropriating money; amending Minnesota Statutes |
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| 4 | 4 | | 1.4 2024, section 123B.595, subdivisions 1, 4, 8, 10. |
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| 5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 6 | 6 | | 1.6 Section 1. Minnesota Statutes 2024, section 123B.595, subdivision 1, is amended to read: |
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| 7 | 7 | | 1.7 Subdivision 1.Long-term facilities maintenance revenue.(a) Long-term facilities |
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| 8 | 8 | | 1.8maintenance revenue equals the greater of (1) the sum of (i) $380 times the district's adjusted |
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| 9 | 9 | | 1.9pupil units times the lesser of one or the ratio of the district's average building age to 35 |
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| 10 | 10 | | 1.10years, plus (ii) the cost approved by the commissioner for indoor air quality, fire alarm and |
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| 11 | 11 | | 1.11suppression, and asbestos abatement projects under section 123B.57, subdivision 6, and |
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| 12 | 12 | | 1.12roof repair and replacement with an estimated cost of $100,000 or more per site, plus (iii) |
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| 13 | 13 | | 1.13for a school district with an approved voluntary prekindergarten program under section |
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| 14 | 14 | | 1.14142D.08, the cost approved by the commissioner for remodeling existing instructional space |
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| 15 | 15 | | 1.15to accommodate prekindergarten instruction, or (2) the sum of (i) the amount the district |
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| 16 | 16 | | 1.16would have qualified for under Minnesota Statutes 2014, section 123B.57, Minnesota |
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| 17 | 17 | | 1.17Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591, and (ii) |
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| 18 | 18 | | 1.18for a school district with an approved voluntary prekindergarten program under section |
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| 19 | 19 | | 1.19142D.08, the cost approved by the commissioner for remodeling existing instructional space |
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| 20 | 20 | | 1.20to accommodate prekindergarten instruction. |
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| 21 | 21 | | 1.21 (b) Notwithstanding paragraph (a), a school district that qualified for eligibility under |
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| 22 | 22 | | 1.22Minnesota Statutes 2014, section 123B.59, subdivision 1, paragraph (a), for fiscal year 2010 |
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| 23 | 23 | | 1.23remains eligible for funding under this section as a district that would have qualified for |
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| 24 | 24 | | 1Section 1. |
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| 25 | 25 | | 25-02291 as introduced01/14/25 REVISOR CR/LJ |
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| 26 | 26 | | SENATE |
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| 27 | 27 | | STATE OF MINNESOTA |
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| 28 | 28 | | S.F. No. 1198NINETY-FOURTH SESSION |
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| 29 | 29 | | (SENATE AUTHORS: HAUSCHILD, Farnsworth, Kupec, Rarick and Eichorn) |
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| 30 | 30 | | OFFICIAL STATUSD-PGDATE |
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| 31 | 31 | | Introduction and first reading02/10/2025 |
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| 32 | 32 | | Referred to Education Finance 2.1eligibility under Minnesota Statutes 2014, section 123B.59, subdivision 1, paragraph (a), |
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| 33 | 33 | | 2.2for fiscal year 2017 and later. |
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| 34 | 34 | | 2.3 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2027 and later. |
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| 35 | 35 | | 2.4 Sec. 2. Minnesota Statutes 2024, section 123B.595, subdivision 4, is amended to read: |
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| 36 | 36 | | 2.5 Subd. 4.Facilities plans.(a) To qualify for revenue under this section, a school district |
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| 37 | 37 | | 2.6or intermediate district, not including a charter school, must have a ten-year facility plan |
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| 38 | 38 | | 2.7adopted by the school board and approved by the commissioner. The plan must include |
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| 39 | 39 | | 2.8provisions for implementing a health and safety program that complies with health, safety, |
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| 40 | 40 | | 2.9and environmental regulations and best practices, including indoor air quality management |
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| 41 | 41 | | 2.10and remediation of lead hazards. The plan must address the maintenance and repair schedule |
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| 42 | 42 | | 2.11for each school's roof for which funding is requested. For planning purposes, the plan must |
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| 43 | 43 | | 2.12also address provisions for providing a gender-neutral single-user restroom at each school |
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| 44 | 44 | | 2.13site. |
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| 45 | 45 | | 2.14 (b) The district must annually update the plan, submit the plan to the commissioner for |
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| 46 | 46 | | 2.15approval by July 31, and indicate whether the district will issue bonds to finance the plan |
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| 47 | 47 | | 2.16or levy for the costs. |
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| 48 | 48 | | 2.17 (c) For school districts issuing bonds to finance the plan, the plan must include a debt |
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| 49 | 49 | | 2.18service schedule demonstrating that the debt service revenue required to pay the principal |
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| 50 | 50 | | 2.19and interest on the bonds each year will not exceed the projected long-term facilities revenue |
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| 51 | 51 | | 2.20for that year. |
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| 52 | 52 | | 2.21 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2027 and later. |
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| 53 | 53 | | 2.22 Sec. 3. Minnesota Statutes 2024, section 123B.595, subdivision 8, is amended to read: |
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| 54 | 54 | | 2.23 Subd. 8.Long-term facilities maintenance equalized levy.(a) A district's long-term |
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| 55 | 55 | | 2.24facilities maintenance equalized levy equals the district's long-term facilities maintenance |
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| 56 | 56 | | 2.25equalization revenue minus the greater of: |
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| 57 | 57 | | 2.26 (1) the lesser of the district's long-term facilities maintenance equalization revenue or |
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| 58 | 58 | | 2.27the amount of aid the district received for fiscal year 2015 under Minnesota Statutes 2014, |
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| 59 | 59 | | 2.28section 123B.59, subdivision 6; or |
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| 60 | 60 | | 2.29 (2) the district's long-term facilities maintenance equalization revenue times the greater |
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| 61 | 61 | | 2.30of (i) zero, or (ii) one minus the ratio of its adjusted net tax capacity per adjusted pupil unit |
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| 62 | 62 | | 2.31in the year preceding the year the levy is certified to 123 ....... percent of the state average |
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| 63 | 63 | | 2Sec. 3. |
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| 64 | 64 | | 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 |
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| 65 | 65 | | 3.2the year the levy is certified. |
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| 66 | 66 | | 3.3 (b) For purposes of this subdivision, "adjusted net tax capacity" means the value described |
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| 67 | 67 | | 3.4in section 126C.01, subdivision 2, paragraph (b). |
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| 68 | 68 | | 3.5 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2027 and later. |
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| 69 | 69 | | 3.6 Sec. 4. Minnesota Statutes 2024, section 123B.595, subdivision 10, is amended to read: |
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| 70 | 70 | | 3.7 Subd. 10.Allowed uses for long-term facilities maintenance revenue.(a) A district |
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| 71 | 71 | | 3.8may use revenue under this section for any of the following: |
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| 72 | 72 | | 3.9 (1) deferred capital expenditures and maintenance projects necessary to prevent further |
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| 73 | 73 | | 3.10erosion of facilities, including repair and replacement of roofs; |
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| 74 | 74 | | 3.11 (2) increasing accessibility of school facilities; |
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| 75 | 75 | | 3.12 (3) health and safety capital projects under section 123B.57; |
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| 76 | 76 | | 3.13 (4) remodeling or constructing a gender-neutral single-user restroom at each school site; |
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| 77 | 77 | | 3.14or |
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| 78 | 78 | | 3.15 (5) by board resolution, to transfer money from the general fund reserve for long-term |
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| 79 | 79 | | 3.16facilities maintenance to the debt redemption fund to pay the amounts needed to meet, when |
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| 80 | 80 | | 3.17due, principal and interest on general obligation bonds issued under subdivision 5. |
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| 81 | 81 | | 3.18 (b) A charter school may use revenue under this section for any purpose related to the |
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| 82 | 82 | | 3.19school. |
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| 83 | 83 | | 3.20 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2027 and later. |
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| 84 | 84 | | 3.21 Sec. 5. APPROPRIATIONS. |
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| 85 | 85 | | 3.22 Subdivision 1.Department of Education.The sums indicated in this section are |
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| 86 | 86 | | 3.23appropriated from the general fund to the Department of Education for the fiscal years |
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| 87 | 87 | | 3.24designated. |
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| 88 | 88 | | 3.25 Subd. 2.Long-term facilities maintenance equalized aid.(a) For long-term facilities |
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| 89 | 89 | | 3.26maintenance equalized aid under Minnesota Statutes, section 123B.595, subdivision 9: |
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| 90 | 90 | | 2026............3.27 $ |
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| 91 | 91 | | 2027............3.28 $ |
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| 92 | 92 | | 3.29 (b) The 2026 appropriation includes $....... for 2025 and $....... for 2026. |
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| 93 | 93 | | 3Sec. 5. |
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| 94 | 94 | | 25-02291 as introduced01/14/25 REVISOR CR/LJ 4.1 (c) The 2027 appropriation includes $....... for 2026 and $....... for 2027. |
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| 95 | 95 | | 4Sec. 5. |
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| 96 | 96 | | 25-02291 as introduced01/14/25 REVISOR CR/LJ |
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