SF 857

01/02/25  REVISOR  CR/MI  25-01705  as introduced
  SENATE
  STATE OF MINNESOTA
  NINETY-FOURTH SESSION  S.F. No. 857
  (SENATE AUTHORS: FARNSWORTH)
  DATE       D-PG  OFFICIAL STATUS
  02/03/2025       246 Introduction and first reading
  Referred to Education Finance
  See See First Special Session, HF5
1.1A bill for an act
1.2relating to education finance; authorizing additional long-term facilities maintenance
1.3revenue and revenue uses for school districts with facilities on the National Register
1.4of Historic Places; appropriating money; amending Minnesota Statutes 2024,
1.5section 123B.595, subdivisions 1, 10, 11.
1.6    BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7Section 1. Minnesota Statutes 2024, section 123B.595, subdivision 1, is amended to read:
1.8Subdivision 1. Long-term facilities maintenance revenue. (a) Long-term facilities
1.9    maintenance revenue equals the greater of (1) the sum of (i) $380 times the district's adjusted
1.10   pupil units times the lesser of one or the ratio of the district's average building age to 35
1.11   years, plus (ii) the cost approved by the commissioner for indoor air quality, fire alarm and
1.12   suppression, and asbestos abatement projects under section 123B.57, subdivision 6, with
1.13   an estimated cost of $100,000 or more per site, plus (iii) for a school district with an approved
1.14   voluntary prekindergarten program under section 142D.08, the cost approved by the
1.15   commissioner for remodeling existing instructional space to accommodate prekindergarten
1.16   instruction, or (2) the sum of (i) the amount the district would have qualified for under
1.17   Minnesota Statutes 2014, section 123B.57, Minnesota Statutes 2014, section 123B.59, and
1.18   Minnesota Statutes 2014, section 123B.591, and (ii) for a school district with an approved
1.19   voluntary prekindergarten program under section 142D.08, the cost approved by the
1.20   commissioner for remodeling existing instructional space to accommodate prekindergarten
1.21   instruction.
1.22(b) In addition to the revenue authorized in paragraph (a), a school district operating and
1.23   enrolling students in a school building listed on the National Register is eligible for additional
Section 1.  1
 01/02/25  REVISOR  CR/MI  25-01705  as introduced
2.1  long-term facilities maintenance revenue equal to $....... times the district's adjusted pupil
2.2  units for that year.
2.3(b) (c) Notwithstanding paragraph paragraphs (a) and (b), a school district that qualified
2.4  for eligibility under Minnesota Statutes 2014, section 123B.59, subdivision 1, paragraph
2.5  (a), for fiscal year 2010 remains eligible for funding under this section as a district that
2.6  would have qualified for eligibility under Minnesota Statutes 2014, section 123B.59,
2.7  subdivision 1, paragraph (a), for fiscal year 2017 and later.
2.8EFFECTIVE DATE. This section is effective for revenue for fiscal year 2026 and later.
2.9    Sec. 2. Minnesota Statutes 2024, section 123B.595, subdivision 10, is amended to read:
2.10Subd. 10. Allowed uses for long-term facilities maintenance revenue. (a) A district
2.11 may use revenue under this section for any of the following:
2.12(1) deferred capital expenditures and maintenance projects necessary to prevent further
2.13 erosion of facilities;
2.14(2) increasing accessibility of school facilities;
2.15(3) health and safety capital projects under section 123B.57;
2.16(4) remodeling or constructing a gender-neutral single-user restroom at each school site;
2.17 or
2.18(5) for a facility on the National Register of Historic Places, all heating, ventilation, and
2.19 air conditioning projects, and any other remodeling projects specifically related to maintaining
2.20 the historic nature of the facility; or
2.21(5) (6) by board resolution, to transfer money from the general fund reserve for long-term
2.22 facilities maintenance to the debt redemption fund to pay the amounts needed to meet, when
2.23 due, principal and interest on general obligation bonds issued under subdivision 5.
2.24(b) A charter school may use revenue under this section for any purpose related to the
2.25 school.
2.26EFFECTIVE DATE. This section is effective for revenue for fiscal year 2026 and later.
2.27   Sec. 3. Minnesota Statutes 2024, section 123B.595, subdivision 11, is amended to read:
2.28Subd. 11. Restrictions on long-term facilities maintenance revenue. Notwithstanding
2.29 subdivision 10, long-term facilities maintenance revenue may not be used:
2.30(1) for:
 Sec. 3.  2
 01/02/25  REVISOR  CR/MI  25-01705  as introduced
3.1      (i) the construction of new facilities,;
3.2      (ii) remodeling of existing facilities, except as allowed for facilities on the National
3.3  Register of Historic Places under subdivision 10, paragraph (a), clause (5); or
3.4      (iii) the purchase of portable classrooms, except for the costs associated with constructing
3.5  or remodeling existing facilities to include at least one gender-neutral single-user restroom
3.6  authorized under subdivision 10;
3.7      (2) to finance a lease purchase agreement, installment purchase agreement, or other
3.8  deferred payments agreement;
3.9      (3) for energy-efficiency projects under section 123B.65, for a building or property or
3.10 part of a building or property used for postsecondary instruction or administration, or for a
3.11 purpose unrelated to elementary and secondary education; or
3.12     (4) for violence prevention and facility security, ergonomics, or emergency
3.13 communication devices.
3.14     EFFECTIVE DATE. This section is effective for revenue for fiscal year 2026 and later.
3.15   Sec. 4. APPROPRIATION; LONG-TERM FACILITIES MAINTENANCE
3.16 REVENUE.
3.17     Subdivision 1. Department of Education. The sums indicated in this section are
3.18 appropriated from the general fund to the Department of Education in the fiscal years
3.19 designated.
3.20     Subd. 2. Long-term facilities maintenance revenue. For additional long-term facilities
3.21 maintenance revenue required under this act:
3.22$  .......   ..... 2026
3.23$  .......   ..... 2027
 Sec. 4.  3