1.1                          A bill for an act
  1.2             relating to local government; providing for local 
  1.3             governments 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.  [LOCAL GOVERNMENT.] "Local government" means a 
  1.11  county, town, school district, or statutory or home rule charter 
  1.12  city. 
  1.13     Subd. 3.  [LOCAL GOVERNMENT OF THE SAME KIND.] "Local 
  1.14  government of the same kind" means any category of the 
  1.15  following:  all cities; all counties; all school districts; or 
  1.16  all towns. 
  1.17     Subd. 4.  [SAME CLASS.] "Same class" means all cities of 
  1.18  the same class. 
  1.19     Subd. 5.  [STATE MANDATE.] "State mandate" means a 
  1.20  requirement imposed upon a local government in state law that: 
  1.21     (1) if not complied with, results in civil liability, 
  1.22  criminal penalty, or administrative sanctions such as reduction 
  1.23  or loss of funding, whether the state provides funding to 
  1.24  accomplish the mandate or not; 
  1.25     (2) mandates a new program, eliminates an existing mandated 
  2.1   program, requires an increased level of service of an existing 
  2.2   program, or permits a decreased level of service in an existing 
  2.3   mandated program; 
  2.4      (3) implements or interprets federal law and, by its 
  2.5   implementation or interpretation, increases or decreases program 
  2.6   or service levels beyond the level required by the federal law; 
  2.7      (4) removes an option previously available to local 
  2.8   governments or adds an option previously unavailable to local 
  2.9   governments, thus requiring higher program or service levels or 
  2.10  permitting lower program or service levels, or prohibits a 
  2.11  specific activity and so forces local governments to use a more 
  2.12  costly alternative to provide a mandated program or service; 
  2.13     (5) requires that an existing program or service be 
  2.14  provided in a shorter time period and thus increases the cost of 
  2.15  the program or service, or permits an existing mandated program 
  2.16  or service to be provided in a longer time period, thus 
  2.17  permitting a decrease in the cost of the program or service; 
  2.18     (6) adds new requirements to an existing optional program 
  2.19  or service and thus increases the cost of the program or service 
  2.20  because the local governments have no reasonable alternative 
  2.21  other than to continue the optional program; 
  2.22     (7) requires costs previously incurred at local option that 
  2.23  have subsequently been mandated by the state; 
  2.24     (8) requires payment of a new fee or increases the amount 
  2.25  of an existing fee, or permits the elimination or decrease of an 
  2.26  existing fee mandated by the state; or 
  2.27     (9) is intended to achieve compliance with federal law or 
  2.28  court orders, but the federal law or court order is 
  2.29  discretionary. 
  2.30     Sec. 2.  [471B.02] [OPT OUT PROCEDURES.] 
  2.31     Subdivision 1.  [LOCAL PROCEDURE.] A local government may 
  2.32  by written resolution of the governing body after public notice 
  2.33  and hearing, determine that a state mandate imposed on all local 
  2.34  governments of the same kind or class should not apply to it, 
  2.35  except any state mandate listed in section 471B.03.  The 
  2.36  resolution must specifically cite the state law that imposes the 
  3.1   mandate on the local government.  Before adopting the 
  3.2   resolution, there must be adequate notice to the public of the 
  3.3   proposal, including information on whether any state or federal 
  3.4   funding for the local government might be adversely affected and 
  3.5   on how a person can participate in the discussion on the 
  3.6   decision.  The governing body of the local government must hold 
  3.7   at least one public hearing on the proposal with opportunity for 
  3.8   public testimony.  The proponent of making the determination 
  3.9   must identify at the hearing any potential loss of state or 
  3.10  federal revenue that might result from a determination to opt 
  3.11  out of the state mandate and any other policy issues or effects 
  3.12  that might arise from the determination.  A local government 
  3.13  that adopts a resolution must file the resolution with the state 
  3.14  auditor. 
  3.15     Subd. 2.  [STATE PROCEDURE.] For each state mandate 
  3.16  identified in a resolution filed with the state auditor, the 
  3.17  state auditor must determine whether the mandate is a mandate 
  3.18  that the local government may determine to opt out of.  The 
  3.19  state auditor must notify the local government whether the 
  3.20  resolution and mandate meet the requirements of this chapter.  
  3.21  For any resolution properly filed with the state auditor, the 
  3.22  auditor must: 
  3.23     (1) keep on the state auditor's Web site a list of all 
  3.24  state mandates that have been named in a resolution filed with 
  3.25  the state auditor, identifying for each mandate the local 
  3.26  governments that have adopted and filed a resolution to opt out 
  3.27  of it, and whether the threshold for opt out has been met; 
  3.28     (2) keep a running total of the percent of local 
  3.29  governments of the same kind or class that have approved the opt 
  3.30  out; 
  3.31     (3) notify the legislature and the local governments that 
  3.32  have filed resolutions to opt out of the mandate with the state 
  3.33  auditor when the threshold for opt out has been met; and 
  3.34     (4) each year prior to publication of Minnesota Statutes or 
  3.35  Minnesota Statutes Supplement, at a time determined by the 
  3.36  revisor of statutes, the state auditor must provide to the 
  4.1   revisor of statutes a list of all state laws that do not apply 
  4.2   to any local governments because those local governments have 
  4.3   opted out as provided in this section.  The revisor of statutes 
  4.4   must: 
  4.5      (1) list the affected laws and local governments as a note 
  4.6   to this chapter; and 
  4.7      (2) indicate as a note to each affected state law which 
  4.8   local governments have opted out. 
  4.9      Subd. 3.  [THRESHOLD FOR OPT OUT; EFFECTIVE DATE.] If at 
  4.10  least ten percent of the number of local governments of the same 
  4.11  kind or class file with the state auditor a copy of the 
  4.12  resolution adopted, as provided in subdivision 1, the state 
  4.13  mandate does not apply to those local governments effective the 
  4.14  day following adjournment sine die of the regular session of the 
  4.15  legislature that convenes after the minimum number of 
  4.16  resolutions have been filed. 
  4.17     Subd. 4.  [LATER OPT OUTS.] After an opt out is effective 
  4.18  under subdivision 3, any other local government of the same kind 
  4.19  or class may, following the procedures in this section, opt out 
  4.20  of the same mandate and its opt out is effective upon filing 
  4.21  with the state auditor the resolution to opt out of the same 
  4.22  state mandate. 
  4.23     Sec. 3.  [471B.03] [EXCEPTIONS.] 
  4.24     Subdivision 1.  [SCOPE.] The state laws listed in this 
  4.25  section are not subject to section 471B.02 and no local 
  4.26  government may opt out of complying with them. 
  4.27     Subd. 2.  [ELECTION LAW.] Minnesota Election Law, as 
  4.28  defined in section 200.01, and any other law governing elections.
  4.29     Subd. 3.  [GOVERNMENT DATA PRACTICES ACT.] Chapter 13 and 
  4.30  any other law classifying or governing treatment of government 
  4.31  data. 
  4.32     Subd. 4.  [MINNESOTA OPEN MEETING LAW.] Chapter 13D and any 
  4.33  other law governing meetings of local governments. 
  4.34     Subd. 5.  [ADMINISTRATION OF THE PROPERTY TAX SYSTEM.] Any 
  4.35  laws relating to administration of the property tax system, 
  4.36  including provisions in chapters 270, 272, 273, 274, 275, 276, 
  5.1   276A, 277, 278, and 473F. 
  5.2      Subd. 6.  [LEVY LIMITS.] Any law relating to levy limits, 
  5.3   including sections 275.70 to 275.74. 
  5.4      Subd. 7.  [TRUTH IN TAXATION.] Section 275.065. 
  5.5      Subd. 8.  [OPERATION AND ADMINISTRATION OF THE COURTS AND 
  5.6   CORRECTIONS SYSTEM.] Any law relating to the operation and 
  5.7   administration of the courts and corrections systems, including 
  5.8   chapters 242, 487, and 488A. 
  5.9      Subd. 9.  [ACCOUNTING, FINANCIAL MANAGEMENT PROCEDURES; 
  5.10  AUDIT REQUIREMENTS.] Any law relating to the accounting, 
  5.11  financial management, and audit requirements of local 
  5.12  governments, including, for school districts, the accounting, 
  5.13  expenditures and budgeting required under sections 123B.76 and 
  5.14  123B.77, except that no account or fund restrictions imposed by 
  5.15  state law apply to a school district that has opted out of those 
  5.16  state mandates. 
  5.17     Subd. 10.  [UNIFORM MUNICIPAL CONTRACTING.] Section 471.345 
  5.18  and any other law relating to contracts of local governments. 
  5.19     Subd. 11.  [CONFLICTS OF INTEREST; GIFTS.] Any law relating 
  5.20  to conflicts of interest of local government officials or 
  5.21  employees, including sections 471.87, 471.88, 471.881, 471.89, 
  5.22  and 471.895.