Purpose

This bill amends the law governing total operating capital revenue to expand what districts can spend those funds on. The central change adds paying utility service costs as an authorized use, alongside a long list of other facility, safety, technology, and program needs. The goal is to help school districts maintain, improve, and operate school facilities more effectively while complying with safety and accessibility standards.

Main provisions

• Core change: Adds a new authorized use for total operating capital revenue—“to pay utility service costs.”
• Existing uses retained and specified (examples include):
  • Buying land or constructing buildings for school purposes
  • Renting or leasing buildings and paying related repair or improvement costs in leases
  • Improving, repairing, and equipping school sites and buildings, including permanent fixtures and spaces with privacy features (e.g., library media centers, gender-neutral single-user restrooms, privacy stalls, or other single-user facilities)
  • Using funds for accessibility improvements for individuals with disabilities and for Fire Code compliance
  • Removing asbestos, encapsulating asbestos, and other asbestos-related repairs
  • Cleaning up PCBs in school buildings
  • Managing fuels and fuel storage cleanup (heating, transportation fuels)
  • Conducting energy audits and implementing building modifications that can be repaid within ten years
  • Improvements to leased buildings and paying special assessments on school property
  • Paying principal and interest on certain energy-related loans and state loans, and other debt-related arrangements
  • Purchasing or leasing interactive telecommunications equipment
  • Transferring funds for debt redemption, or to meet principal/interest on debt service loans or capital loans
  • Paying operating capital-related assessments for mult-district cooperatives
  • Purchasing or leasing computers, related hardware/software/licensing, copiers, telecom equipment, and other noninstructional equipment
  • Purchasing or leasing assistive technology for instructional programs
  • Purchasing textbooks and library media resources or technology
  • Leasing or purchasing vehicles
  • Purchasing telecommunications equipment and related equipment for integrated information management systems
  • Paying personnel costs directly tied to the acquisition, operation, and maintenance of telecommunications systems, computers, network, and software
  • Costs associated with closing a school facility (moving and storage)
  • Providing access to menstrual products in restrooms and school facilities
  • Paying costs of opiate antagonists required under state law (section 121A.224)

Significant changes to existing law

• Primary change: Adds “to pay utility service costs” as an authorized use of total operating capital revenue, expanding the range of operating costs districts may cover with these funds.
• Other listed uses remain as previously authorized, including extensive facility, safety, energy, technology, and instructional support needs, as well as debt and loan-related uses and certain health/safety provisions.

Practical implications and who is affected

• Who is affected: School districts and other districts that receive operating capital revenue.
• What changes may look like in practice:
  • Districts can apply operating capital funds toward utility bills (electric, water, heating, etc.) for school facilities, helping with ongoing operating costs and facility maintenance.
  • Districts may re-prioritize projects or finance plans to include utility costs alongside capital improvements, energy upgrades, and safety/accessibility work.
  • Ongoing costs related to chemicals, safety equipment, and health provisions (like menstrual product access and opiate antagonist availability) remain eligible uses, reflecting broad facility and student-support goals.
  • Budgeting and procurement decisions may increasingly integrate debt management and long-term planning for energy and information management systems.

Notable details to watch

• The bill keeps a wide array of uses for operating capital revenue, indicating a broad, flexible approach to district facility and operational needs.
• Some items refer to compliance with state codes and standards (e.g., State Fire Code) and to state laws (e.g., opiate antagonists under section 121A.224).

Relevant Terms - total operating capital revenue - utility service costs - Minnesota Statutes 2024 section 126C.10 subdivision 14 - land for school purposes - acquire/buildings for school purposes - rent or lease buildings - library media centers - gender-neutral single-user restrooms - privacy stalls - accessibility for individuals with a disability - State Fire Code - asbestos removal/repair - polychlorinated biphenyls (PCBs) - energy audits - energy conservation - leased buildings (section 123B.51) - special assessments - debt redemption fund - principal and interest on loans (energy conservation, debt service) - interactive telecommunications equipment - computers and related hardware/software/licensing - assistive technology - textbooks - library media resources/technology - vehicles - integrated information management systems - personnel costs for telecommunications systems and related software - closing a school facility (moving and storage) - access to menstrual products in schools - opiate antagonists (section 121A.224)