1.1 	A bill for an act
1.2 	relating to capital investment; appropriating money for school facility renovation 
1.3 	projects; authorizing the sale and issuance of state bonds.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. SCHOOL FACILITY RENOVATION REFERENDUM INSUFFICIENCY 
1.6 	GRANTS.
 1.7 		Subdivision 1.Grant program. The commissioner of education may make grants to 
1.8 	school districts to provide money to cover a deficiency in funding for school renovation 
1.9 	projects that were the subject of a referendum passed between January 1, 2021, and March 
1.10 	1, 2022.
1.11 		Subd. 2.Eligible applicants, projects, expenses, and amount. A school district may 
1.12 	apply to receive a grant to cover qualifying capital expenses to be incurred for a capital 
1.13 	project for which a referendum was passed between January 1, 2021, and March 1, 2022, 
1.14 	to fund the project. The eligible amount of the grant is the difference between the amount 
1.15 	allowed under the referendum and the amount required for the project as determined by 
1.16 	bids obtained after the referendum was placed on the ballot and prior to the submission of 
1.17 	the application for a grant under this section. Qualifying capital expenses are expenses 
1.18 	eligible for payment from the proceeds of general obligation bonds.
1.19 		Subd. 3.Application. The commissioner of education must establish a process for 
1.20 	notifying school districts of the availability of this funding, and an application and application 
1.21 	process for school districts to request funding. An applicant must provide documentation 
1.22 	supporting their eligibility for funding under this section, including the enacted referendum 
1.23 	and bids obtained for the project after the measure was submitted for the referendum. A 
2.1 	school district must apply for funding under this program by a date set by the commissioner 
2.2 	of education, not later than September 1, 2023.
2.3 		Subd. 4.Pro rata. If the amount requested by eligible applicants for eligible expenses 
2.4 	exceeds the amount of money appropriated in 2023 for this purpose, the commissioner shall 
2.5 	award grants in pro rata shares.
2.6 		Subd. 5.Appropriation. $125,000,000 is appropriated from the bond proceeds fund to 
2.7 	the commissioner of education for grants under this section.
2.8 		Subd. 6.Bond sale. To provide the money appropriated in this section from the bond 
2.9 	proceeds fund, the commissioner of management and budget shall sell and issue bonds of 
2.10 	the state in an amount up to $125,000,000 in the manner, upon the terms, and with the effect 
2.11 	prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
2.12 	Constitution, article XI, sections 4 to 7.

2.13 	EFFECTIVE DATE. This section is effective the day following final enactment.