Purpose

• Expand how total operating capital revenue can be used by Minnesota school districts, specifically adding the payment of utility service costs to the list of authorized uses.

Main Provisions (summary of what the bill does)

• Keeps existing authorized uses for total operating capital revenue, then adds a new use:
  • Pay utility service costs.
• Restates and enumerates many allowable uses already present in current law, including:
  • Acquiring land or constructing buildings for school purposes.
  • Renting, leasing, and related repair/improvement costs tied to lease agreements.
  • Improving and repairing school sites and buildings, including equipment and permanent fixtures.
  • Providing gender-neutral single-user restrooms and other privacy-focused spaces (e.g., privacy stalls, or other single-user facilities with privacy features).
  • Using funds for surplus school buildings used for public non-school purposes.
  • Eliminating barriers or increasing access for individuals with disabilities.
  • Bringing school buildings into compliance with the State Fire Code.
  • Removing asbestos, encapsulating asbestos, or performing asbestos-related repairs.
  • Cleaning up and disposing of polychlorinated biphenyls (PCBs) found in school buildings.
  • Cleaning up, removing, disposing of, and repairing issues related to storing heating and transportation fuels (e.g., alcohol, gasoline, fuel oil, special fuel).
  • Conducting energy audits and making building modifications if the modification cost can be recovered within ten years.
  • Improving buildings that are leased under certain lease provisions.
  • Paying special assessments on school property (but not service charges).
  • Paying principal and interest on state energy loans or other specified loan programs.
  • Purchasing or leasing interactive telecommunications equipment.
  • Transferring money to the debt redemption fund to cover principal and interest on certain debt, or debt service loans or capital loans.
  • Paying operating capital-related assessments of entities formed under cooperative district agreements.
  • Purchasing or leasing computers, software, licensing, copying machines, telecommunications equipment, and other non-instructional equipment.
  • Purchasing or leasing assistive technology or equipment for instructional programs.
  • Purchasing textbooks and library/media resources or technology.
  • Leasing or purchasing vehicles.
  • Purchasing or leasing telecommunications equipment and computers for integrated information management systems used to manage learner outcomes, student assessments, and other classroom information management needs.
  • Paying personnel costs directly related to the acquisition, operation, and maintenance of telecommunications systems, computers, related equipment, and network/software.
  • Covering costs associated with closing a school facility, including moving and storage costs.
  • Providing supplies and equipment to give students access to menstrual products at no charge in restrooms and as needed in facilities.
  • Paying costs related to opiate antagonists required by law.
  • Paying utility service costs (the newly added use).

Significant Changes to Existing Law

• Adds “pay utility service costs” as an explicit, authorized use of total operating capital revenue.
• Maintains a broad list of other uses, including energy efficiency, safety, building health (asbestos, PCBs), accessibility, instructional and non-instructional equipment, and facility operations.

Potential Implications

• School districts gain a new funding option to cover ongoing utility bills from operating capital funds, potentially freeing other resources for different needs.
• Could affect budgeting decisions by allowing utility costs to be funded alongside building repairs, equipment purchases, and other capital-valued projects.
• May influence long-term planning for energy efficiency and building modernization, given the inclusion of energy audits and related improvements.
• Emphasizes support for student health and safety (menstrual product access, opiate antagonists) as funded uses.

Note on Scope

• The bill amends Minnesota Statutes 2024 section 126C.10 subdivision 14, expanding and detailing uses of total operating capital revenue for school purposes.

Relevant Terms - total operating capital revenue - Minnesota Statutes 2024 section 126C.10 subdivision 14 - utility service costs - gender-neutral single-user restrooms - polychlorinated biphenyls (PCBs) - asbestos - State Fire Code - energy audits - debt redemption fund - interactive telecommunications equipment - integrated information management systems - results-oriented graduation rule - cooperative district agreements