The act makes optional an appropriation to comply with matching requirements under the federal 'Richard B. Russell National School Lunch Act' and allows the amount to be appropriated from the healthy school meals for all program cash fund. The act allows money for administration of the summer electronic benefits transfer for children program to be appropriated from the healthy school meals for all program cash fund. The act makes an appropriation for the start smart nutrition program optional, repeals the start smart nutrition program cash fund, transfers the start smart nutrition program cash fund balance to the general fund, and allows an appropriation for the start smart nutrition program to be made from the healthy school meals for all program cash fund. The act makes an appropriation for the child nutrition school lunch protection program optional and allows an appropriation for the child nutrition school lunch protection program to be made from the healthy school meals for all program cash fund. Under current law, the department of education administers a local school food purchasing program and a local school food purchasing technical assistance and education grant program (legacy local school food programs) that are distinct from the local school food purchasing program and technical assistance and education grant programs within the 'Healthy School Meals for All Act' (HSMA local school food programs). The act permits the general assembly to appropriate money for the legacy local school food programs if the healthy school meals for all program cash fund does not fully fund the HSMA local school food programs. The act appropriates $3,001,741 from the healthy school meals for all program cash fund to the department of education for the affected programs. The act reduces appropriations for the 2026-27 state fiscal year to the department of education for the affected programs by $3,839,685, of which $229,097 is from the general fund and the remainder from various cash funds.(Note: This summary applies to this bill as enacted.)
Under existing law, the department of personnel administers the 'state procurement equity program', which includes a bond assistance program to help historically underutilized businesses that are small businesses offset the costs of obtaining a surety bond that is required for a solicitation for a state procurement opportunity. The bond assistance program is funded through the bond assistance program cash fund. The act transfers the unexpended and unencumbered balance of the bond assistance program cash fund to the general fund on June 30, 2026. The department must use any encumbered balance that remains in the fund after the transfer only to fulfill the obligations encumbering the balance of the fund. The act repeals the bond assistance program, effective December 1, 2027.(Note: This summary applies to this bill as enacted.)
Section 4 of the bill creates the 'Building Excellent Teacher and Employee Residences Act' (BETER). BETER creates a new school district financing opportunity for the development of housing for teachers and other school district and public school staff (workforce housing). The bill creates an application process by which a school district (applicant) may apply to the workforce housing assistance board (board) for financial assistance in connection with developing a workforce housing project. The division of public school capital construction assistance within the department of education (division of public school capital construction assistance) and the division of housing within the department of local affairs (division of housing) shall assist applicants in identifying workforce housing needs and in submitting applications to the board. No later than June 1, the board, with the support of the division of housing and division of public school capital construction assistance, shall review these applications according to guidelines that the board establishes and creates an initial prioritized list of workforce housing projects to award financial assistance. The board shall submit this initial prioritized list to the state board of education and the state housing board for comment. No later than July 15, the board shall determine a final prioritized list of projects for which the board will provide financial assistance. The board may only award financial assistance to an applicant for a workforce housing project if:The board determines that the project complies with affordability, tenancy, and environmental and building requirements established by the board; andUnless the board grants an exemption, the applicant provides matching money in an amount at least equal to the portion of the total development cost of the workforce housing project that can be financed with and supported by net operating income generated from the project.The board may only provide an amount of financial assistance to an applicant for a workforce housing project that is equal to or less than the portion of the amount of the workforce housing project's total development cost that exceeds the amount that the applicant can finance and support with the workforce housing project's net operating income. The board may provide financial assistance to an applicant for a workforce housing project by awarding matching grants that are paid out of the workforce housing assistance fund (fund) or by instructing the state treasurer to enter into a financed purchase of an asset or certificate of participation agreement. In this context, the financed purchase of an asset or certificate of participation agreement means a lease-purchase agreement between the state treasurer and a trustee pursuant to which:The state makes rental payments that include principal and interest components; andThe trustee, pursuant to an indenture of trust, creates certificates of participation evidencing undivided interests in the payments made by the state under the lease-purchase agreement. Any payment obligation of the state as part of a financed purchase of an asset or certificate of participation agreement is subject to annual appropriation and does not create an indebtedness or multiple fiscal year financial obligation of the state within the meaning of any provision of the state constitution or state statute. If the state treasurer enters into a financed purchase of an asset or certificate of participation agreement, the board shall enter into a sub-financed purchase of an asset or certificate of participation agreement for the workforce housing project with the applicant that will use the workforce housing. The sub-financed purchase of an asset or certificate of participation agreement must:Require the applicant to perform for the state all duties of the state to maintain and operate the workforce housing project and to make periodic rental payments to the state or otherwise make a payment to the state in the amount of the matching money required for the award of financial assistance; andProvide for the transfer of ownership of the workforce housing from the state to the applicant upon the fulfillment of both the state's obligations under the financed purchase of an asset or certificate of participation agreement and the applicant's obligations under the sub-financed purchase of an asset or certificate of participation agreement. The board is required to present an annual written report to the education and finance committees of the house of representatives and the senate regarding the provision of financial assistance to applicants. The board is also required to post a similar report on the department of education's website. Sections 5, 6, 7, and 8 establish the funding mechanism for the fund. The state constitution restricts the use of the principal of the public school fund and only allows for the use of public school fund interest and income. Sections 6 and 7 clarify that public school fund interest and income includes realized and unrealized gains and directs the transfer of the lesser of an amount of interest and income equal to 2.5% of the total value of the public school fund after making currently required interest and income distributions from the public school fund or $40 million to the state public school fund. Section 5 creates the public school fund income stabilization account within the public school fund and directs the treasurer to credit the difference between the amount transferred from the public school fund to the state public school fund as described in section 6 and $40 million to the account. The uses of the account are limited to supplementing payment from or the principal of the public school fund. Section 8 directs the state treasurer to annually transfer an amount equal to the amount transferred from the public school fund to the state public school fund pursuant to section 6 from the state education fund to the fund. Section 1 expands school district powers concerning the development and financing of workforce housing. Specifically, section 1 allows for school districts to:Acquire, construct, improve, own, operate, lease, and lease-purchase workforce housing;Issue bonds to finance workforce housing;Enter into contracts with public entities and private parties to finance workforce housing; andCreate enterprises for the acquisition, construction, improvement, ownership, operation, leasing, and lease-purchasing of workforce housing.Section 1 also describes the characteristics of bonds issued by school district-created enterprises for the purpose of financing workforce housing. Section 2 adds certain school district and school district enterprise lease agreements, lease-purchase agreements, and revenue bonds entered into or issued in connection with financing workforce housing to the state intercept program. Sections 3, 9, and 10 grant the division of public school capital construction assistance, the state treasurer, and the division of housing the powers necessary to implement the bill.(Note: This summary applies to this bill as introduced.)
The act authorizes the clean fleet enterprise (enterprise) to incentivize, support, and accelerate the replacement of a truck that is part of a fleet and that is powered by a diesel-fueled internal combustion engine, is a model year of 2009 or earlier, and is registered, operable, and capable of independent roadway operation (aging diesel truck) with a diesel truck that is a model year of 2018 or later (new diesel truck) until December 31, 2031. The act also allows the enterprise to provide funding or financing through grant programs, rebate programs, revolving loan funds, or other strategies to help owners and operators of aging diesel truck fleets finance the replacement of aging diesel trucks with new diesel trucks to reduce the up-front costs of acquiring new diesel trucks until December 31, 2031. The enterprise may use the clean fleet enterprise fund to provide money to support the replacement of aging diesel trucks with new diesel trucks, but the enterprise is required to ensure that it does not expend more than 20% of the fund's income during a state fiscal year for the support. To qualify for any money provided by the enterprise for the replacement of aging diesel trucks with new diesel trucks, the act requires a purchaser of the new diesel truck to surrender an aging diesel truck to the seller of the new truck. The seller of the new diesel truck must decommission the aging diesel truck by drilling a hole in the engine's block and cutting the chassis rails in half. The seller must be an authorized dealer of new diesel trucks who must certify that the new diesel truck meets all state and federal emissions and safety standards for its model year. The enterprise must prioritize applications to replace aging diesel trucks from businesses that are privately owned, independently owned, or have limited access to capital. The enterprise is not allowed to accept an application from the owner or operator of a motor vehicle fleet that owns, leases, or operates more than 50 heavy-duty motor vehicles or from a business entity with annual gross revenue exceeding $100 million. The enterprise is required to prioritize the replacement of an aging diesel truck that has a model year of no later than 2006. The act expands the business purpose of the enterprise to include providing incentives and support for refrigerated transport units powered by zero emission technology. The act allows the enterprise to exercise its rights and powers without regard to the state 'Procurement Code'. The act requires the enterprise to annually prepare a report that includes the estimated pollution reduction benefits of the enterprise. The enterprise must seek to ensure that all projects funded by the enterprise achieve measurable results and outcomes.(Note: This summary applies to this bill as enacted.)
