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New law caps school facility rental fees at actual costs starting July 1, 2026
Summary
The Legislature enacted Senate File 90 (Chapter 65), which requires school districts to set rental fees for use of district property at no more than the hourly personnel, equipment, utility and supply costs actually incurred; the law does not alter existing contracts and takes effect July 1, 2026.
The Select Committee on School Facilities received a briefing on a new law, Senate File 90 (Chapter 65), that limits the fees districts may charge for renting school property. "This bill provides that rental fees for any school district for the use of school district property cannot exceed the hourly rate of personnel, equipment, utility, and supply costs actually incurred by the district for the use of the property," said Matt Wilmot of the Legislative Service Office as he summarized the enacted provision.
LSO emphasized that the law becomes effective July 1, 2026, and explicitly does not alter contracts or agreements already in effect before that date. Committee members said they expected districts to raise questions about implementation and particularly about how to calculate hourly cost allocations for equipment and utilities; staff suggested districts be prepared to document cost categories.
Why it matters: school districts that routinely rent gymnasiums, auditoriums, fields and classrooms to community groups will need to align rental schedules and fee worksheets to a narrower statutory standard. Several committee members said they look forward to hearing practical implementation questions from districts during the interim.
Next steps: the State Construction Department and LSO will make guidance and templates available to districts as questions arise and local offices pilot new fee approaches.
