1.1                          A bill for an act
  1.2             relating to school districts; providing for school 
  1.3             districts to opt out of certain state mandates; 
  1.4             proposing coding for new law as Minnesota Statutes, 
  1.5             chapter 471B. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [471B.01] [DEFINITIONS.] 
  1.8      Subdivision 1.  [SCOPE.] For the purposes of this chapter, 
  1.9   the terms defined in this section have the meanings given them. 
  1.10     Subd. 2.  [SCHOOL DISTRICT.] "School district" means a 
  1.11  common, independent, or special school district and excludes 
  1.12  charter schools. 
  1.13     Subd. 3.  [STATE MANDATE.] "State mandate" means a 
  1.14  requirement imposed upon a school district in state law or rule 
  1.15  that: 
  1.16     (1) if not complied with, results in civil liability, 
  1.17  criminal penalty, or administrative sanctions such as reduction 
  1.18  or loss of funding, whether the state provides funding to 
  1.19  accomplish the mandate or not; 
  1.20     (2) mandates a new program, eliminates an existing mandated 
  1.21  program, requires an increased level of service of an existing 
  1.22  program, or permits a decreased level of service in an existing 
  1.23  mandated program; 
  1.24     (3) implements or interprets federal law and, by its 
  1.25  implementation or interpretation, increases or decreases program 
  2.1   or service levels beyond the level required by the federal law; 
  2.2      (4) removes an option previously available to school 
  2.3   districts or adds an option previously unavailable to school 
  2.4   districts, thus requiring higher program or service levels or 
  2.5   permitting lower program or service levels, or prohibits a 
  2.6   specific activity and so forces school districts to use a more 
  2.7   costly alternative to provide a mandated program or service; 
  2.8      (5) requires that an existing program or service be 
  2.9   provided in a shorter time period and thus increases the cost of 
  2.10  the program or service, or permits an existing mandated program 
  2.11  or service to be provided in a longer time period, thus 
  2.12  permitting a decrease in the cost of the program or service; 
  2.13     (6) adds new requirements to an existing optional program 
  2.14  or service and thus increases the cost of the program or service 
  2.15  because the school districts have no reasonable alternative 
  2.16  other than to continue the optional program; 
  2.17     (7) requires costs previously incurred at local option that 
  2.18  have subsequently been mandated by the state; 
  2.19     (8) requires payment of a new fee or increases the amount 
  2.20  of an existing fee, or permits the elimination or decrease of an 
  2.21  existing fee mandated by the state; or 
  2.22     (9) is intended to achieve compliance with federal law or 
  2.23  court orders, but the federal law or court order is 
  2.24  discretionary. 
  2.25     Sec. 2.  [471B.02] [OPT OUT PROCEDURES.] 
  2.26     Subdivision 1.  [LOCAL PROCEDURE.] A school district may by 
  2.27  written resolution of the governing body after public notice and 
  2.28  hearing, determine that a state mandate imposed on all school 
  2.29  districts should not apply to it, except any state mandate 
  2.30  listed in section 471B.03.  A school district must adopt a 
  2.31  separate resolution for each mandate that it determines should 
  2.32  not apply to the district.  The resolution must specifically 
  2.33  cite the state law or rule that imposes the mandate on the 
  2.34  school district, the reasons the school district wants to opt 
  2.35  out of the state mandate, and how the school district will meet 
  2.36  the objectives of the mandate or why the objectives do not apply 
  3.1   to the school district.  Before adopting the resolution, there 
  3.2   must be adequate notice to the public of the proposal, including 
  3.3   information on whether any state or federal funding for the 
  3.4   school district might be adversely affected and on how a person 
  3.5   can participate in the discussion on the decision.  The school 
  3.6   board must hold at least one public hearing on the proposal with 
  3.7   opportunity for public testimony.  The proponent of making the 
  3.8   determination must identify at the hearing any potential loss of 
  3.9   state or federal revenue that might result from a determination 
  3.10  to opt out of the state mandate and any other policy issues or 
  3.11  effects that might arise from the determination.  The school 
  3.12  board must encourage teacher and parent participation to assist 
  3.13  in determining general support for the resolution.  A school 
  3.14  district that adopts a resolution must file the resolution with 
  3.15  the state auditor.  The school district must also pay the state 
  3.16  auditor a filing fee of $75 per resolution at the time the 
  3.17  school district files its resolution to cover costs incurred by 
  3.18  the state auditor in performing the duties assigned to the state 
  3.19  auditor in this chapter.  The fees collected under this section 
  3.20  must be deposited in the general fund and are appropriated to 
  3.21  the state auditor for the purposes of this section.  On July 1, 
  3.22  2003, and July 1 of each year thereafter, using the powers 
  3.23  granted under chapter 6, the auditor must determine the actual 
  3.24  cost of performing the duties assigned in this chapter and 
  3.25  adjust the amount of the fee so that it fully covers the 
  3.26  auditor's costs. 
  3.27     Subd. 2.  [STATE PROCEDURE.] (a) The state auditor must: 
  3.28     (1) keep on the state auditor's Web site a list of all 
  3.29  state mandates that have been named in a resolution filed with 
  3.30  the state auditor, identifying for each mandate the school 
  3.31  districts that have adopted and filed a resolution to opt out of 
  3.32  it, and whether the threshold for opt out has been met; 
  3.33     (2) keep a running total of the percent of school districts 
  3.34  that have approved the opt out; 
  3.35     (3) notify the legislature and the school districts that 
  3.36  have filed resolutions to opt out of the mandate with the state 
  4.1   auditor when the threshold for opt out has been met; and 
  4.2      (4) each year prior to publication of Minnesota Statutes or 
  4.3   Minnesota Statutes Supplement, at a time determined by the 
  4.4   revisor of statutes, the state auditor must provide to the 
  4.5   revisor of statutes a list of all state laws that do not apply 
  4.6   to any school districts because those school districts have 
  4.7   opted out as provided in this section.  
  4.8      (b) The revisor of statutes must: 
  4.9      (1) publish a list of the affected laws and school 
  4.10  districts; and 
  4.11     (2) provide appropriate finding aids or cross-references to 
  4.12  the list for users of the statutes. 
  4.13     Subd. 3.  [THRESHOLD FOR OPT OUT; CERTIFICATION; EFFECTIVE 
  4.14  DATE.] If the state auditor certifies to the legislature before 
  4.15  the first day of the regular annual session of the legislature 
  4.16  that at least ten percent of the number of school districts 
  4.17  filed with the state auditor resolutions to opt out of a state 
  4.18  mandate, as authorized in this chapter, and otherwise have met 
  4.19  the procedural requirements of this chapter, the state mandate 
  4.20  does not apply to those school districts effective the day 
  4.21  following adjournment of that session of the legislature. 
  4.22     Subd. 4.  [LATER OPT OUTS.] After an opt out is effective 
  4.23  under subdivision 3, any other school district may, following 
  4.24  the procedures in this section, opt out of the same mandate and 
  4.25  its opt out is effective upon filing with the state auditor the 
  4.26  resolution to opt out of the same state mandate and the law or 
  4.27  rule that is the subject of the resolution to opt out does not 
  4.28  apply to that school district thereafter. 
  4.29     Sec. 3.  [471B.03] [EXCEPTIONS.] 
  4.30     Subdivision 1.  [SCOPE.] The state laws listed in this 
  4.31  section are not subject to section 471B.02 and no school 
  4.32  district may opt out of complying with them. 
  4.33     Subd. 2.  [ELECTION LAW.] Minnesota Election Law, as 
  4.34  defined in section 200.01, and any other law governing elections.
  4.35     Subd. 3.  [GOVERNMENT DATA PRACTICES ACT.] Chapter 13 and 
  4.36  any other law classifying or governing treatment of government 
  5.1   data. 
  5.2      Subd. 4.  [MINNESOTA OPEN MEETING LAW.] Chapter 13D and any 
  5.3   other law governing meetings of local governments. 
  5.4      Subd. 5.  [ADMINISTRATION OF THE PROPERTY TAX SYSTEM.] Any 
  5.5   laws relating to administration of the property tax system, 
  5.6   including provisions in chapters 270, 272, 273, 274, 275, 276, 
  5.7   276A, 277, 278, and 473F. 
  5.8      Subd. 6.  [TRUTH IN TAXATION.] Section 275.065. 
  5.9      Subd. 7.  [ACCOUNTING, FINANCIAL MANAGEMENT PROCEDURES; 
  5.10  AUDIT REQUIREMENTS.] Any law relating to the accounting, 
  5.11  financial management, and audit requirements of school 
  5.12  districts, including the accounting, expenditures and budgeting 
  5.13  required under sections 123B.76 and 123B.77, except that no 
  5.14  account or fund restrictions imposed by state law apply to a 
  5.15  school district that has opted out of those state mandates. 
  5.16     Subd. 8.  [CONFLICTS OF INTEREST; GIFTS.] Any law relating 
  5.17  to conflicts of interest of school district officials or 
  5.18  employees, including sections 471.87, 471.88, 471.881, 471.89, 
  5.19  and 471.895. 
  5.20     Subd. 9.  [BUILDING CODE.] Section 16B.61, subdivision 1a, 
  5.21  relating to administration and enforcement of the state building 
  5.22  code. 
  5.23     Subd. 10.  [COMPULSORY ATTENDANCE LAWS.] Section 120A.22, 
  5.24  governing compulsory instruction and other law related to 
  5.25  student attendance. 
  5.26     Subd. 11.  [NONPUBLIC STUDENTS.] Sections 123B.40 to 
  5.27  123B.48 governing the rights of nonpublic school students and 
  5.28  other law related to nonpublic schools or students.