The bill aims to provide mandate relief for school districts in Minnesota by allowing certain fund transfers and enabling school boards to opt out of compliance with specific state laws and rules. For the fiscal years 2025 through 2029, school districts, charter schools, or cooperative units are permitted to transfer unassigned or unencumbered funds from any operating account to the undesignated balance in another operating account, provided that such transfers do not increase state aid obligations or property tax authority. School boards must adopt a written resolution detailing the purpose and amount of the transfer, which must be posted on their website and communicated to the commissioner.

Additionally, the bill allows school districts and charter schools to adopt resolutions to opt out of compliance with new state education laws or rules for the school years 2025-2026 through 2028-2029. This applies to laws enacted after July 1, 2023, and includes specific laws from the 2023 and 2024 legislative sessions. School boards that choose to opt out must document their decisions and make them publicly available on their websites while notifying the commissioner. Both sections of the bill become effective the day following final enactment.