1.1 A bill for an act
1.2 relating to education; providing building lease aid for charter schools; amending
1.3 Minnesota Statutes 2024, section 124E.22.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2024, section 124E.22, is amended to read:
1.6 124E.22 BUILDING LEASE AID.
1.7 (a) When a charter school finds it economically advantageous to rent or lease a building
1.8or land for any instructional purpose and it determines that the total operating capital revenue
1.9under section 126C.10, subdivision 13, is insufficient for this purpose, it may apply to the
1.10commissioner for building lease aid in the form and manner prescribed by the commissioner.
1.11The commissioner must review and either approve or deny a lease aid application using at
1.12least the following criteria:
1.13 (1) the reasonableness of the price based on current market values;
1.14 (2) the extent to which the lease conforms to applicable state laws and rules; and
1.15 (3) the appropriateness of the proposed lease in the context of the space needs and
1.16financial circumstances of the charter school. The commissioner must approve aid only for
1.17a facility lease that has (i) a sum certain annual cost and (ii) a closure clause to relieve the
1.18charter school of its lease obligations at the time the charter contract is terminated or not
1.19renewed. The closure clause under item (ii) must not be constructed or construed to relieve
1.20the charter school of its lease obligations in effect before the charter contract is terminated
1.21or not renewed.
1Section 1.
25-02317 as introduced01/15/25 REVISOR CR/LJ
SENATE
STATE OF MINNESOTA
S.F. No. 2576NINETY-FOURTH SESSION
(SENATE AUTHORS: PHA and Coleman)
OFFICIAL STATUSD-PGDATE
Introduction and first reading03/17/2025
Referred to Education Finance 2.1 (b) A charter school must not use the building lease aid it receives for custodial,
2.2maintenance service, utility, or other operating costs.
2.3 (c) The amount of annual building lease aid for a charter school shall not exceed the
2.4lesser of (1) 90 percent of the approved cost or (2) the product of the charter school building
2.5lease aid pupil units served for the current school year times $1,314 $1,606.
2.6 (d) The building lease aid amount defined in paragraph (c) for fiscal year 2026 and later
2.7must be rounded to the nearest whole dollar and increase by a percentage matched with
2.8increases in the formula allowance for the previous fiscal year calculated in section 126C.10,
2.9subdivision 2, paragraph (b).
2.10 (d) (e) A charter school's building lease aid pupil units equals the sum of the charter
2.11school pupil units under section 126C.05 and the pupil units for the portion of the day that
2.12the charter school's enrolled students are participating in the Postsecondary Enrollment
2.13Options Act under section 124D.09 and not otherwise included in the pupil count under
2.14section 126C.05.
2Section 1.
25-02317 as introduced01/15/25 REVISOR CR/LJ