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HF 3427

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/14/2022 01:58pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/14/2022

Current Version - as introduced

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A bill for an act
relating to education finance; authorizing an election to revoke a school district's
operating referendum authority and its local optional revenue authority; authorizing
recall of school board members; amending Minnesota Statutes 2020, sections
123B.09, subdivision 9; 126C.17, subdivision 9; 351.14, subdivision 5, by adding
a subdivision; 351.15; 351.16, subdivisions 1, 2, 4; 351.18; 351.19, subdivision
4; 351.20; 351.21; 351.22, subdivisions 1, 2; Minnesota Statutes 2021 Supplement,
section 126C.10, subdivision 2e; repealing Minnesota Statutes 2020, section
128D.14.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 123B.09, subdivision 9, is amended to read:


Subd. 9.

Removing board members.

deleted text begin Thedeleted text end new text begin Anew text end boardnew text begin membernew text end maynew text begin be removed in one of
two ways: (1) the board may
new text end remove, for proper cause, any member or officer of the board
deleted text begin and fill the vacancydeleted text end ; deleted text begin but suchdeleted text end new text begin or (2) a member may be removed from office in accordance
with the procedures established in sections 351.14 to 351.23. A
new text end removal new text begin by the board new text end must
be by a concurrent vote of at least deleted text begin fourdeleted text end new text begin a majority of the current boardnew text end members, at a meeting
of whose time, place, and object the charged member has been duly notified, with the reasons
for such proposed removal and after an opportunity to be heard in defense against the
removal.new text begin A board must fill a vacancy caused by a member being removed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2021 Supplement, section 126C.10, subdivision 2e, is amended
to read:


Subd. 2e.

Local optional revenue.

(a) For fiscal year 2021 and later, local optional
revenue for a school district equals the sum of the district's first tier local optional revenue
and second tier local optional revenue. A district's first tier local optional revenue equals
$300 times the adjusted pupil units of the district for that school year. A district's second
tier local optional revenue equals $424 times the adjusted pupil units of the district for that
school year.

(b) For fiscal year 2021 and later, a district's local optional levy equals the sum of the
first tier local optional levy and the second tier local optional levy.

(c) A district's first tier local optional levy equals the district's first tier local optional
revenue times the lesser of one or the ratio of the district's referendum market value per
resident pupil unit to $880,000.

(d) For fiscal year 2022, a district's second tier local optional levy equals the district's
second tier local optional revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to $510,000. For fiscal year 2023, a district's
second tier local optional levy equals the district's second tier local optional revenue times
the lesser of one or the ratio of the district's referendum market value per resident pupil unit
to $548,842. For fiscal year 2024 and later, a district's second tier local optional levy equals
the district's second tier local optional revenue times the lesser of one or the ratio of the
district's referendum market value per resident pupil unit to $510,000.

(e) The local optional levy must be spread on referendum market value. A district may
levy less than the permitted amount.

(f) A district's local optional aid equals its local optional revenue minus its local optional
levy. If a district's actual levy for first or second tier local optional revenue is less than its
maximum levy limit for that tier, its aid must be proportionately reduced.

new text begin (g) A school board's authority to exercise local optional revenue under this subdivision
is subject to a referendum to revoke or reduce the school district's local optional revenue.
A school district that receives a qualifying petition to revoke or reduce its local optional
revenue must hold an election to revoke or reduce its local optional revenue. A petition to
revoke local optional revenue is effective if signed by a number of qualified voters in excess
of 15 percent of the registered voters of the district on the day the petition is filed with the
board. The petition must state the per pupil unit amount of local optional revenue that is
intended to be reduced or revoked. The petition must be submitted to the school board no
later than June 1 of the year of the election and the election must be held on the November
election date if signed by a number of qualified voters in excess of 15 percent of the registered
voters of the district on the day the petition is filed with the board. The ballot must contain
a textual portion stating substantially the following:
new text end

new text begin "Shall the local optional revenue of ......., School District No. ..., be reduced to not more
than $....... per pupil?"
new text end

new text begin (h) A school board's local optional revenue that is revoked or reduced under paragraph
(g) cancels for the fiscal year following the fiscal year of the revocation election and remains
canceled for ten fiscal years following its reduction or revocation unless a successful
referendum is conducted under section 126C.17, in which case the authority approved under
that question is restored.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2020, section 126C.17, subdivision 9, is amended to read:


Subd. 9.

Referendum revenue.

(a) The revenue authorized by section 126C.10,
subdivision 1
, may be increased new text begin or revoked new text end in the amount approved by the voters of the
district at a referendum called for the purpose. The referendum may be called by the board.
new text begin A referendum to revoke authority must be called according to paragraph (c). new text end The referendum
must be conducted one or two calendar years before the increased levy authority, if approved,
first becomes payable. Only one election to approve an increase new text begin or revoke existing authority
new text end may be held in a calendar year. Unless the referendum is conducted by mail under subdivision
11, paragraph (a), the referendum must be held on the first Tuesday after the first Monday
in November. The ballot must state the maximum amount of the increased revenue per
adjusted pupil unitnew text begin or the amount of the proposed authority to revoke per adjusted pupil
unit
new text end . new text begin For referendum authority, new text end the ballot may state a schedule, determined by the board,
of increased revenue per adjusted pupil unit that differs from year to year over the number
of years for which the increased revenue is authorized or may state that the amount shall
increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the
annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may
state that existing referendum levy authority is expiring. In this case, the ballot may also
compare the proposed levy authority to the existing expiring levy authority, and express
the proposed increase as the amount, if any, over the expiring referendum levy authority.
The ballot must designate the specific number of years, not to exceed ten, for which the
referendum authorization applies. The ballot, including a ballot on the question to revoke
or reduce the increased revenue amount under paragraph (c), must abbreviate the term "per
adjusted pupil unit" as "per pupil." The notice required under section 275.60 may be modified
to read, in cases of renewing existing levies at the same amount per pupil as in the previous
year:

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING TO
EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS SCHEDULED
TO EXPIRE."

The ballot may contain a textual portion with the information required in this subdivision
and a question stating substantially the following:

"Shall the increasenew text begin (revocation)new text end in the revenue proposed by (petition to) the board of
......., School District No. .., be approved?"

If approved, an amount equal to the approved revenue per adjusted pupil unit times the
adjusted pupil units for the school year beginning in the year after the levy is certified shall
be authorized for certification for the number of years approved, if applicable, or until
revoked or reduced by the voters of the district at a subsequent referendum.

(b) The board must deliver by mail at least 15 days but no more than 45 days before the
day of the referendum to each taxpayer a notice of the referendum and the proposed revenue
increasenew text begin or decrease in the case of a revocation electionnew text end . The board need not mail more than
one notice to any taxpayer. For the purpose of giving mailed notice under this subdivision,
owners must be those shown to be owners on the records of the county auditor or, in any
county where tax statements are mailed by the county treasurer, on the records of the county
treasurer. Every property owner whose name does not appear on the records of the county
auditor or the county treasurer is deemed to have waived this mailed notice unless the owner
has requested in writing that the county auditor or county treasurer, as the case may be,
include the name on the records for this purpose. The notice must project the anticipated
amount of tax increasenew text begin or decreasenew text end in annual dollars for typical residential homesteads,
agricultural homesteads, apartments, and commercial-industrial property within the school
district.

The notice for a referendum may state that an existing referendum levy is expiring and
project the anticipated amount of increase over the existing referendum levy in the first
year, if any, in annual dollars for typical residential homesteads, agricultural homesteads,
apartments, and commercial-industrial property within the district.

new text begin In cases other than a revocation, new text end the notice must include the following statement: "Passage
of this referendum will result in an increase in your property taxes." However, in cases of
renewing existing levies, the notice may include the following statement: "Passage of this
referendum extends an existing operating referendum at the same amount per pupil as in
the previous year."

(c) A referendum on the question of revoking or reducing the increased revenue amount
authorized pursuant to paragraph (a) may be called by the boardnew text begin and must be called upon
receiving a qualifying petition under paragraph (d)
new text end . A referendum to revoke or reduce the
revenue amount must state the amount per adjusted pupil unit by which the authority is to
be reduced. Revenue authority approved by the voters of the district pursuant to paragraph
(a) must be available to the school district at least once before it is subject to a referendum
on its revocation or reduction for subsequent years. Only one revocation or reduction
referendum may be held to revoke or reduce referendum revenue for any specific year and
for years thereafter.

new text begin (d) A school district that receives a qualifying petition to revoke or reduce its local
optional revenue must hold an election to revoke or reduce its referendum revenue. A petition
to revoke referendum revenue is effective if signed by a number of qualified voters in excess
of 15 percent of the registered voters of the district on the day the petition is filed with the
board. The petition must state the per pupil unit amount of referendum revenue that is
intended to be reduced or revoked. The petition must be submitted to the school board no
later than June 1 of the year of the election and the election must be held on the November
election date if signed by a number of qualified voters in excess of 15 percent of the registered
voters of the district on the day the petition is filed with the board.
new text end

deleted text begin (d)deleted text end new text begin (e)new text end The approval of 50 percent plus one of those voting on the question is required
to pass new text begin or revoke new text end a referendum authorized by this subdivision.

deleted text begin (e)deleted text end new text begin (f)new text end At least 15 days before the day of the referendum, the district must submit a copy
of the notice required under paragraph (b) to the commissioner and to the county auditor
of each county in which the district is located. Within 15 days after the results of the
referendum have been certified by the board, or in the case of a recount, the certification of
the results of the recount by the canvassing board, the district must notify the commissioner
of the results of the referendum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2020, section 351.14, subdivision 5, is amended to read:


Subd. 5.

Elected countynew text begin or school districtnew text end official.

"Elected countynew text begin or school districtnew text end
official" meansnew text begin :
new text end

new text begin (1)new text end any public official who is elected to countywide office or appointed to an elective
countywide office, including county attorney, county sheriff, county auditor, county recorder,
county treasurer, and soil and water conservation supervisordeleted text begin . "Elected county official" also
means
deleted text end new text begin ;
new text end

new text begin (2)new text end a county commissioner elected or appointed from a commissioner district or a soil
and water conservation district supervisor elected or appointed from a supervisor district
established under section 103C.311, subdivision 2new text begin ; or
new text end

new text begin (3) a school board membernew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2020, section 351.14, is amended by adding a subdivision to
read:


new text begin Subd. 6. new text end

new text begin Filing official. new text end

new text begin "Filing official" means:
new text end

new text begin (1) the county auditor for county offices; or
new text end

new text begin (2) the school district clerk for school board members.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2020, section 351.15, is amended to read:


351.15 REMOVAL OF ELECTED COUNTYnew text begin OR SCHOOL DISTRICTnew text end OFFICIAL.

An elected countynew text begin or school districtnew text end official may be removed from office in accordance
with the procedures established in sections 351.14 to 351.23.new text begin A school board member may
also be removed by any other procedure provided under section 123B.09, subdivision 9.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2020, section 351.16, subdivision 1, is amended to read:


Subdivision 1.

Form of petition.

Any registered voter may petition the deleted text begin county auditordeleted text end new text begin
filing officer
new text end requesting a removal election and setting forth facts which allege with
specificity that an elected countynew text begin or school districtnew text end official committed malfeasance or
nonfeasance in the performance of official duties during the current or any previous term
in the office held by the elected countynew text begin or school districtnew text end official, except that a petition may
not be submitted during the 180 days immediately preceding a general election for the office
which is held by the countynew text begin or school districtnew text end official named in the petition. The petitioner
must attach to the petition documents which contain the signatures of supporters who are
registered voters totaling at least 25 percent of the number of persons who voted in the
preceding election for the office which is held by the countynew text begin or school districtnew text end official named
in the petition. Each page on which signatures are included must clearly identify the purpose
of the petition. new text begin In a removal election involving a countywide office, new text end the registered voters
must be residents of the county deleted text begin or,deleted text end new text begin .new text end In a removal election involving a county commissioner,
new text begin the registered voters must be residents new text end of the commissioner district which elected the named
county commissioner. new text begin In a removal election involving a school board member elected at
large, the registered voters must be residents of the school district or, in the case of a board
member elected to an election district, the voters must be residents of that election district.
new text end The signatures of supporters must be on forms provided by the county auditor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2020, section 351.16, subdivision 2, is amended to read:


Subd. 2.

deleted text begin County auditor'sdeleted text end new text begin Filing official'snew text end duties.

The deleted text begin county auditordeleted text end new text begin filing officialnew text end
shall examine the petition to determine whether it contains the requisite number of valid
signatures of registered voters. If so, the deleted text begin county auditordeleted text end new text begin filing officialnew text end shall forward the
petition, but not the signatures, to the clerk of appellate courts within 15 days of receipt of
the petition. If the deleted text begin county auditordeleted text end new text begin filing officialnew text end determines that the petition does not include
the requisite number of signatures, the deleted text begin county auditordeleted text end new text begin filing officialnew text end shall deny the petition
within 15 days of receipt of the petition.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2020, section 351.16, subdivision 4, is amended to read:


Subd. 4.

Limitation.

An elected countynew text begin or school districtnew text end official is not subject to a
removal election on the ground that misfeasance in the performance of official duties was
committed, or on the ground of disagreement with actions taken that were within the lawful
discretion of the elected countynew text begin or school districtnew text end official.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2020, section 351.18, is amended to read:


351.18 WAIVER.

An elected countynew text begin or school districtnew text end official who is the subject of a petition under section
351.16 may waive in writing the right to a public hearing. If the hearing is waived, the case
must be certified by order of the chief justice to the deleted text begin county auditordeleted text end new text begin filing officialnew text end for a
removal election to be held within 30 days of the receipt of the order.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Minnesota Statutes 2020, section 351.19, subdivision 4, is amended to read:


Subd. 4.

Legal counsel.

new text begin (a) In a removal election involving a county official, new text end the
petitioners and the elected county official shall be represented by legal counsel at their own
expense, and shall pay their costs associated with the hearing except that the county may
assume the legal costs incurred by the elected county official. The county shall pay all other
costs of the hearing.

new text begin (b) In a removal election involving a school board member, the petitioners and the school
board member shall be represented by legal counsel at their own expense, and shall pay
their costs associated with the hearing except that the school district may assume the legal
costs incurred by the school board member. The school district shall pay all other costs of
the hearing.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2020, section 351.20, is amended to read:


351.20 DECISION; CERTIFICATION.

If the special master determines that the elected countynew text begin or school districtnew text end official
committed malfeasance or nonfeasance in the performance of official duties, the case must
be certified to the deleted text begin county auditordeleted text end new text begin filing officialnew text end for a removal election on a date to be fixed
by the deleted text begin county auditordeleted text end new text begin filing officialnew text end and held within 30 days of the order of the special
master.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

Minnesota Statutes 2020, section 351.21, is amended to read:


351.21 APPEAL.

An elected countynew text begin or school districtnew text end official may appeal the decision of a special master
under section 351.20 to the supreme court within ten days. The removal election is stayed
until 20 days after the supreme court issues a decision on the appeal. The supreme court
shall grant an expedited appeal.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

Minnesota Statutes 2020, section 351.22, subdivision 1, is amended to read:


Subdivision 1.

Majority vote; form of question.

new text begin (a) new text end An elected county official new text begin or school
board member
new text end may be removed pursuant to sections 351.14 to 351.23 by majority vote.
deleted text begin The
deleted text end

new text begin (b) Anew text end removal election new text begin for a county official new text end is a special election conducted under
applicable provisions of section 375.20. The question submitted to the voters must be:

"Should .................................................. (Name) elected (appointed) to the office of
.............................................. (title) be removed from that office?

Yes .
No . "

Any resulting vacancy must be filled as provided by law.

new text begin (c) A removal election for a school board member is a special election conducted under
section 205A.05. The question submitted to the voters must be:
new text end

new text begin "Should .................................................. (name) elected (appointed) to the office of
.............................................. (title) be removed from that office?
new text end

new text begin Yes .
new text end
new text begin No .
new text end
new text begin "
new text end

new text begin Any resulting vacancy must be filled as provided by law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15.

Minnesota Statutes 2020, section 351.22, subdivision 2, is amended to read:


Subd. 2.

Disqualification.

A removed countynew text begin or school districtnew text end official may not thereafter
hold the same office for the remainder of the term to which the official was elected.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 16. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, section 128D.14, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: 22-05635

128D.14 BOARD MEMBER REMOVAL LAW DOES NOT APPLY.

The provisions of section 123B.09, subdivision 9, concerning the removal of a board member or officer of an independent school district, shall not be applicable to the special independent school district of Minneapolis, established under the provisions of this chapter.