SF 3163

Introduction - 94th Legislature (2025 - 2026)

Posted on 07/09/2025 01:25 p.m.

A bill for an act
relating to education finance; authorizing the board of a consolidated school district
to renew an expiring referendum established pursuant to the consolidation;
clarifying the requirements for school board renewal of an expiring referendum;
amending Minnesota Statutes 2024, sections 123A.73, subdivisions 4, 5; 126C.17,
subdivision 9b.

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

Section 1.

Minnesota Statutes 2024, section 123A.73, subdivision 4, is amended to read:

Subd. 4.

Consolidation; maximum authorized referendum revenues.

(a) As of the
effective date of a consolidation pursuant to section 123A.48, if the plan for consolidation
so provides, or if the plan for consolidation makes no provision concerning referendum
revenues, the authorization for all referendum revenues previously approved by the voters
of all affected districts for those districts pursuant to section 126C.17, subdivision 9, or its
predecessor provision shall be recalculated as provided in this subdivision. The referendum
revenue authorization for the newly created district shall be the revenue per adjusted pupil
unit that would raise an amount equal to the combined dollar amount of the referendum
revenues authorized by each of the component districts for the year preceding the
consolidation, unless the referendum revenue authorization of the newly created district is
subsequently modified pursuant to section 126C.17, subdivision 9.

(b) The referendum allowance for a consolidated district in the years following
consolidation equals the average of the consolidating districts' existing authorities for those
years, weighted by the districts' adjusted pupil units in the year preceding consolidation.
For purposes of this calculation, the referendum authorities used for individual districts
shall not decrease from year to year until such time as all existing authorities for all the
consolidating districts have fully expired, but shall increase if they were originally approved
with consumer price index-based or other annual increases.

(c) The referendum revenue authorization for the newly created district shall continue
for a period of time equal to the longest period authorized for any component district. new text begin The
referendum revenue authorization for the newly created district may be renewed by the
school board of the newly created district pursuant to section 126C.17, subdivision 9b, for
a term not to exceed ten years, without regard to the terms of the previous authorizations
prior to consolidation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from June 16, 2024, and
applies to school board resolutions adopted on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2024, section 123A.73, subdivision 5, is amended to read:

Subd. 5.

Alternative method.

(a) As of the effective date of a consolidation pursuant
to section 123A.48, if the plan for consolidation so provides, the authorization for all
referendum revenues previously approved by the voters of all affected districts for those
districts pursuant to section 126C.17, subdivision 9, or its predecessor provision shall be
combined as provided in this subdivision. The referendum revenue authorization for the
newly created district may be any allowance per adjusted pupil unit provided in the plan
for consolidation, but may not exceed the allowance per adjusted pupil unit that would raise
an amount equal to the combined dollar amount of the referendum revenues authorized by
each of the component districts for the year preceding the consolidation.

(b) The referendum allowance for a consolidated district in the years following
consolidation equals the average of the consolidating districts' existing authorities for those
years, weighted by the districts' adjusted pupil units in the year preceding consolidation.
For purposes of this calculation, the referendum authorities used for individual districts
shall not decrease from year to year until such time as all existing authorities for all the
consolidating districts have fully expired, but shall increase if they were originally approved
with consumer price index-based or other annual increases.

(c) The referendum revenue authorization for the newly created district shall continue
for a period of time equal to the longest period authorized for any component district. The
referendum revenue authorization for the newly created district may be modified pursuant
to section 126C.17, subdivision 9. new text begin The referendum revenue authorization for the newly
created district may be renewed by the school board of the newly created district pursuant
to section 126C.17, subdivision 9b, for a term not to exceed ten years, without regard to the
terms of the previous authorizations prior to consolidation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from June 16, 2024, and
applies to school board resolutions adopted on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2024, section 126C.17, subdivision 9b, is amended to read:

Subd. 9b.

Renewal by school board.

(a) Notwithstanding the election requirements of
subdivision 9, a school board may renew an expiring referendum new text begin , including an expiring
referendum that was approved or adopted under section 123A.73, subdivision 4 or 5, new text end by
board action if:

(1) the per pupil amount of the referendum is the same as the amount expiring, or for
an expiring referendum that was adjusted annually by the rate of inflation, the same as the
per pupil amount of the expiring referendum, adjusted annually for inflation in the same
manner as if the expiring referendum had continued;

(2) the term of the renewed referendum is no longer than the initial term approved by
the voters new text begin , except as provided under section 123A.75, subdivision 4 or 5 new text end ;

(3) the school board, having taken a recorded vote, has adopted a written resolution
authorizing the renewal after holding a meeting and allowing public testimony on the
proposed renewal; and

(4) the expiring referendum has not been previously renewed under this subdivision.

(b) The resolution must be adopted by the school board deleted text begin by deleted text end new text begin on or after July 1 of the
second fiscal year prior to the fiscal year in which the referendum expires, but no later than new text end
June 15 of deleted text begin any calendar year and deleted text end new text begin the fiscal year prior to the fiscal year in which the
referendum expires. The resolution new text end becomes effective 60 days after its adoption.

(c) A referendum expires in the last fiscal year in which the referendum generates revenue
for the school district. deleted text begin A school board may renew an expiring referendum under this
subdivision not more than two fiscal years before the referendum expires.
deleted text end

(d) A district renewing an expiring referendum under this subdivision must submit a
copy of the adopted resolution to the commissioner and to the county auditor no later than
deleted text begin September 1 deleted text end new text begin August 15 new text end of the deleted text begin calendar year in which the written resolution is adopted deleted text end new text begin fiscal
year in which the referendum expires new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from June 16, 2024, and
applies to school board resolutions adopted on or after that date.
new text end