SF 1775

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to local government; providing for local
governments to opt out of state mandates; proposing
coding for new law as Minnesota Statutes, chapter 471B.

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

Section 1.

new text begin [471B.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of this chapter,
the terms defined in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Local government. new text end

new text begin "Local government" means a
county, town, school district, or statutory or home rule charter
city.
new text end

new text begin Subd. 3. new text end

new text begin Local government of the same kind. new text end

new text begin "Local
government of the same kind" means any category of the
following: all cities, all counties, all school districts, or
all towns.
new text end

new text begin Subd. 4. new text end

new text begin Same class. new text end

new text begin "Same class" means all cities of
the same class.
new text end

new text begin Subd. 5. new text end

new text begin School district. new text end

new text begin "School district" means a
common, independent, or special school district and excludes
charter schools.
new text end

new text begin Subd. 6. new text end

new text begin State mandate. new text end

new text begin "State mandate" means a state
law or rule specifically directed at or related to local
government structure, operation, services, programs, or
financing that:
new text end

new text begin (1) imposes a cost on a local government, whether or not
the state appropriates money for the local government to cover
the costs, or authorizes the local government to impose a tax or
fee to cover the costs;
new text end

new text begin (2) decreases revenue available to a local government
without a commensurate decrease in services and programs
required by the law or rule;
new text end

new text begin (3) makes a local government, or its officers or employees,
civilly or criminally liable for failure to follow or enforce
the law or rule;
new text end

new text begin (4) restricts the ability of a local government to
establish services, programs, policies, plans, or goals, or
restricts its ability to raise revenue or finance its services,
programs, policies, plans, or goals; or
new text end

new text begin (5) implements or interprets federal law and, by its
implementation or interpretation, increases or decreases program
or service or funding levels.
new text end

Sec. 2.

new text begin [471B.02] OPT OUT RESOLUTION AND PROCEDURES.
new text end

new text begin Subdivision 1. new text end

new text begin Local procedure. new text end

new text begin (a) A local government
may, by written resolution of the governing body after public
notice and hearing, propose that a state mandate imposed on all
local governments of the same kind or class, except a state
mandate under section 471B.03, should not apply to it. A local
government also may include in a resolution recommendations for
reforming a mandate. A local government must adopt a separate
resolution for each mandate that it proposes should not apply to
it. The resolution must:
new text end

new text begin (1) specifically cite the state law or rule that imposes
the mandate on the local government;
new text end

new text begin (2) identify any costs of complying with the mandate and
the total amount of federal and state funds available for
complying with the mandate;
new text end

new text begin (3) state the reasons the local government needs to opt out
of the state mandate and recommend mandate reforms to achieve
greater efficiencies; and
new text end

new text begin (4) indicate how the local government will otherwise meet
the objectives of the mandate or why the objectives do not apply
to the local government.
new text end

new text begin (b) Before voting on the resolution, the governing body
must give adequate public notice of the proposed resolution,
including information on whether state or federal funding for
the local government might be adversely affected. The governing
body must hold at least one public hearing on the proposed
resolution and afford the public opportunity for comment. The
governing body must encourage public participation in the
hearing in order to determine the extent of public support for
the proposed resolution.
new text end

new text begin (c) The proponent of the proposed resolution at least must
identify at the hearing:
new text end

new text begin (1) the costs of complying with the mandate that exceed the
state and federal funds allocated to the district for purposes
of the mandate and recommend reforms for achieving greater
efficiencies;
new text end

new text begin (2) any potential loss of state or federal revenue that
might result from opting out of the state mandate;
new text end

new text begin (3) other policy issues or effects that might result;
new text end

new text begin (4) the purposes for which the mandate was imposed;
new text end

new text begin (5) those persons and categories of person who will be
adversely affected if the mandate is not complied with; and
new text end

new text begin (6) the costs and benefits of the mandate compared to the
costs and benefits of inaction.
new text end

new text begin (d) A local government that adopts a resolution must file
the resolution with the state auditor. At the time of filing,
the local government must pay the state auditor a fee to cover
actual costs the state auditor incurs in performing the duties
under this section. The amount of the fee is as follows:
new text end

new text begin (1) for each resolution filed by a local government with a
population over 100,000, $500;
new text end

new text begin (2) for each resolution filed by a local government with a
population over 20,000 and not more than 100,000, $350;
new text end

new text begin (3) for each resolution filed by a local government with a
population over 10,000 and not more than 20,000, $200; and
new text end

new text begin (4) for each resolution filed by a local government with a
population of not more than 10,000, $50.
new text end

new text begin All fees collected under this section are appropriated to the
state auditor for the purposes of this section. On July 1,
2005, and each July 1 thereafter, using the powers granted under
chapter 6, the auditor must determine the actual cost of
performing the duties under this section and adjust the amount
of the fee to reflect the auditor's actual costs.
new text end

new text begin Subd. 2. new text end

new text begin State procedure. new text end

new text begin (a) The state auditor must:
new text end

new text begin (1) list on the state auditor's Web site all state mandates
cited in a resolution filed with the state auditor, identifying
for each mandate the local governments that adopted and filed a
resolution to opt out of a mandate, and whether the threshold
under subdivision 3 for opting out is met;
new text end

new text begin (2) keep a running total of the number and percent of local
governments of the same kind and, if applicable, same class,
that have filed a resolution to opt out;
new text end

new text begin (3) notify the legislature when the threshold under
subdivision 3 for opting out is met; and
new text end

new text begin (4) each year before the Minnesota Statutes or Minnesota
Statutes Supplement is published, at a time determined by the
revisor of statutes, provide to the revisor of statutes and the
local governments that filed resolutions to opt out of a mandate
a list of all laws and rules from which local governments may
opt out, consistent with legislative action under subdivision 3.
new text end

new text begin (b) The revisor of statutes must:
new text end

new text begin (1) publish a list of the affected laws, rules, and local
governments; and
new text end

new text begin (2) provide appropriate means, including cross-references,
for the public reasonably to use the statutes and rules in the
context of the list in clause (1).
new text end

new text begin Subd. 3. new text end

new text begin Threshold and certification for opting out;
legislative oversight. new text end

new text begin (a) The state auditor must notify the
house of representatives and senate when the auditor certifies
that the minimum number of local governments of the same kind,
and, if applicable, same class, file resolutions under the
requirements of this chapter. The minimum number is set in
paragraph (c). The legislature must consider the opt out
resolutions included in a notice the auditor delivered to the
legislature before the regular session convenes in any year.
The resolutions are accepted for implementation if approved by
the legislature under this subdivision.
new text end

new text begin (b) The house of representatives and senate must adopt
rules ensuring that bills to forbid implementing of the
resolutions or amending the mandates to which they refer are
given a priority status and presented to the house and senate
for consideration and action by that body in a timely manner
during the regular session that year.
new text end

new text begin (c) The minimum number of local governments of the same
kind or class are:
new text end

new text begin (1) six counties;
new text end

new text begin (2) ... cities, if all cities;
new text end

new text begin (3) ... home rule charter cities;
new text end

new text begin (4) ... statutory cities;
new text end

new text begin (5) two cities of the first class;
new text end

new text begin (6) 14 cities of the second class;
new text end

new text begin (7) 11 cities of the third class;
new text end

new text begin (8) 38 cities of the fourth class;
new text end

new text begin (9) 45 towns; and
new text end

new text begin (10) 24 school districts.
new text end

new text begin Subd. 4. new text end

new text begin Opt out implementation and later opting
out. new text end

new text begin After initial opt out resolutions are approved by the
legislature and take effect, other local governments of the same
kind and, if applicable, same class, may file resolutions to opt
out of the same mandate. The later-filed resolutions must be
consistent with the law enacted in response to the initial opt
out resolutions and later-filed resolutions are only effective
to the extent authorized by that law. Each of these takes
effect 30 days after the auditor accepts the filing.
new text end

Sec. 3.

new text begin [471B.03] EXCEPTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The state laws listed in this
section are not subject to section 471B.02 and the state auditor
must not accept resolutions to address concerns related to these
laws.
new text end

new text begin Subd. 2. new text end

new text begin Election law. new text end

new text begin A local government may not opt
out of Minnesota election law, as defined in section 200.01, and
any other law governing elections.
new text end

new text begin Subd. 3. new text end

new text begin Property tax laws. new text end

new text begin A local government may not
opt out of any laws related to the property tax system under
chapters 270, 272, 273, 274, 275, 276, 276A, 277, 278, and 473F,
and any other property tax-related provisions in law.
new text end

new text begin Subd. 4. new text end

new text begin Accounting, financial management procedures;
audit requirements. new text end

new text begin A local government may not opt out of any
law governing the accounting, financial management, and audit
requirements of local governments, including for school
districts, the accounting, expenditures, and budgeting required
under sections 123B.76 and 123B.77. However, a school district
may opt out of a state-mandated account or fund restriction
consistent with the requirements of this section.
new text end

new text begin Subd. 5. new text end

new text begin Nonpublic students. new text end

new text begin A school district may not
opt out of sections 123B.40 to 123B.48 governing the rights of
nonpublic school students and other law related to nonpublic
schools or students.
new text end

new text begin Subd. 6. new text end

new text begin State auditor. new text end

new text begin A local government may not opt
out of any provision of chapter 6 or any other law that gives
the state auditor authority to require or receive information
from a local government.
new text end