| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to education finance; authorizing the board of a consolidated school district |
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| 3 | 3 | | 1.3 to renew an expiring referendum established pursuant to the consolidation; |
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| 4 | 4 | | 1.4 clarifying the requirements for school board renewal of an expiring referendum; |
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| 5 | 5 | | 1.5 amending Minnesota Statutes 2024, sections 123A.73, subdivisions 4, 5; 126C.17, |
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| 6 | 6 | | 1.6 subdivision 9b. |
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| 7 | 7 | | 1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 8 | 8 | | 1.8 Section 1. Minnesota Statutes 2024, section 123A.73, subdivision 4, is amended to read: |
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| 9 | 9 | | 1.9 Subd. 4.Consolidation; maximum authorized referendum revenues.(a) As of the |
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| 10 | 10 | | 1.10effective date of a consolidation pursuant to section 123A.48, if the plan for consolidation |
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| 11 | 11 | | 1.11so provides, or if the plan for consolidation makes no provision concerning referendum |
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| 12 | 12 | | 1.12revenues, the authorization for all referendum revenues previously approved by the voters |
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| 13 | 13 | | 1.13of all affected districts for those districts pursuant to section 126C.17, subdivision 9, or its |
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| 14 | 14 | | 1.14predecessor provision shall be recalculated as provided in this subdivision. The referendum |
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| 15 | 15 | | 1.15revenue authorization for the newly created district shall be the revenue per adjusted pupil |
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| 16 | 16 | | 1.16unit that would raise an amount equal to the combined dollar amount of the referendum |
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| 17 | 17 | | 1.17revenues authorized by each of the component districts for the year preceding the |
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| 18 | 18 | | 1.18consolidation, unless the referendum revenue authorization of the newly created district is |
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| 19 | 19 | | 1.19subsequently modified pursuant to section 126C.17, subdivision 9. |
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| 20 | 20 | | 1.20 (b) The referendum allowance for a consolidated district in the years following |
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| 21 | 21 | | 1.21consolidation equals the average of the consolidating districts' existing authorities for those |
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| 22 | 22 | | 1.22years, weighted by the districts' adjusted pupil units in the year preceding consolidation. |
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| 23 | 23 | | 1.23For purposes of this calculation, the referendum authorities used for individual districts |
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| 24 | 24 | | 1.24shall not decrease from year to year until such time as all existing authorities for all the |
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| 25 | 25 | | 1Section 1. |
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| 26 | 26 | | 25-05190 as introduced03/24/25 REVISOR CR/AC |
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| 27 | 27 | | SENATE |
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| 28 | 28 | | STATE OF MINNESOTA |
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| 29 | 29 | | S.F. No. 3163NINETY-FOURTH SESSION |
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| 30 | 30 | | (SENATE AUTHORS: FARNSWORTH) |
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| 31 | 31 | | OFFICIAL STATUSD-PGDATE |
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| 32 | 32 | | Introduction and first reading04/01/2025 |
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| 33 | 33 | | Referred to Education Finance 2.1consolidating districts have fully expired, but shall increase if they were originally approved |
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| 34 | 34 | | 2.2with consumer price index-based or other annual increases. |
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| 35 | 35 | | 2.3 (c) The referendum revenue authorization for the newly created district shall continue |
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| 36 | 36 | | 2.4for a period of time equal to the longest period authorized for any component district. The |
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| 37 | 37 | | 2.5referendum revenue authorization for the newly created district may be renewed by the |
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| 38 | 38 | | 2.6school board of the newly created district pursuant to section 126C.17, subdivision 9b, for |
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| 39 | 39 | | 2.7a term not to exceed ten years, without regard to the terms of the previous authorizations |
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| 40 | 40 | | 2.8prior to consolidation. |
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| 41 | 41 | | 2.9 EFFECTIVE DATE.This section is effective retroactively from June 16, 2024, and |
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| 42 | 42 | | 2.10applies to school board resolutions adopted on or after that date. |
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| 43 | 43 | | 2.11 Sec. 2. Minnesota Statutes 2024, section 123A.73, subdivision 5, is amended to read: |
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| 44 | 44 | | 2.12 Subd. 5.Alternative method.(a) As of the effective date of a consolidation pursuant |
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| 45 | 45 | | 2.13to section 123A.48, if the plan for consolidation so provides, the authorization for all |
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| 46 | 46 | | 2.14referendum revenues previously approved by the voters of all affected districts for those |
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| 47 | 47 | | 2.15districts pursuant to section 126C.17, subdivision 9, or its predecessor provision shall be |
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| 48 | 48 | | 2.16combined as provided in this subdivision. The referendum revenue authorization for the |
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| 49 | 49 | | 2.17newly created district may be any allowance per adjusted pupil unit provided in the plan |
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| 50 | 50 | | 2.18for consolidation, but may not exceed the allowance per adjusted pupil unit that would raise |
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| 51 | 51 | | 2.19an amount equal to the combined dollar amount of the referendum revenues authorized by |
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| 52 | 52 | | 2.20each of the component districts for the year preceding the consolidation. |
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| 53 | 53 | | 2.21 (b) The referendum allowance for a consolidated district in the years following |
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| 54 | 54 | | 2.22consolidation equals the average of the consolidating districts' existing authorities for those |
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| 55 | 55 | | 2.23years, weighted by the districts' adjusted pupil units in the year preceding consolidation. |
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| 56 | 56 | | 2.24For purposes of this calculation, the referendum authorities used for individual districts |
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| 57 | 57 | | 2.25shall not decrease from year to year until such time as all existing authorities for all the |
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| 58 | 58 | | 2.26consolidating districts have fully expired, but shall increase if they were originally approved |
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| 59 | 59 | | 2.27with consumer price index-based or other annual increases. |
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| 60 | 60 | | 2.28 (c) The referendum revenue authorization for the newly created district shall continue |
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| 61 | 61 | | 2.29for a period of time equal to the longest period authorized for any component district. The |
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| 62 | 62 | | 2.30referendum revenue authorization for the newly created district may be modified pursuant |
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| 63 | 63 | | 2.31to section 126C.17, subdivision 9. The referendum revenue authorization for the newly |
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| 64 | 64 | | 2.32created district may be renewed by the school board of the newly created district pursuant |
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| 65 | 65 | | 2.33to section 126C.17, subdivision 9b, for a term not to exceed ten years, without regard to the |
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| 66 | 66 | | 2.34terms of the previous authorizations prior to consolidation. |
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| 67 | 67 | | 2Sec. 2. |
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| 68 | 68 | | 25-05190 as introduced03/24/25 REVISOR CR/AC 3.1 EFFECTIVE DATE.This section is effective retroactively from June 16, 2024, and |
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| 69 | 69 | | 3.2applies to school board resolutions adopted on or after that date. |
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| 70 | 70 | | 3.3 Sec. 3. Minnesota Statutes 2024, section 126C.17, subdivision 9b, is amended to read: |
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| 71 | 71 | | 3.4 Subd. 9b.Renewal by school board.(a) Notwithstanding the election requirements of |
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| 72 | 72 | | 3.5subdivision 9, a school board may renew an expiring referendum, including an expiring |
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| 73 | 73 | | 3.6referendum that was approved or adopted under section 123A.73, subdivision 4 or 5, by |
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| 74 | 74 | | 3.7board action if: |
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| 75 | 75 | | 3.8 (1) the per pupil amount of the referendum is the same as the amount expiring, or for |
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| 76 | 76 | | 3.9an expiring referendum that was adjusted annually by the rate of inflation, the same as the |
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| 77 | 77 | | 3.10per pupil amount of the expiring referendum, adjusted annually for inflation in the same |
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| 78 | 78 | | 3.11manner as if the expiring referendum had continued; |
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| 79 | 79 | | 3.12 (2) the term of the renewed referendum is no longer than the initial term approved by |
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| 80 | 80 | | 3.13the voters, except as provided under section 123A.75, subdivision 4 or 5; |
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| 81 | 81 | | 3.14 (3) the school board, having taken a recorded vote, has adopted a written resolution |
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| 82 | 82 | | 3.15authorizing the renewal after holding a meeting and allowing public testimony on the |
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| 83 | 83 | | 3.16proposed renewal; and |
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| 84 | 84 | | 3.17 (4) the expiring referendum has not been previously renewed under this subdivision. |
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| 85 | 85 | | 3.18 (b) The resolution must be adopted by the school board by on or after July 1 of the |
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| 86 | 86 | | 3.19second fiscal year prior to the fiscal year in which the referendum expires, but no later than |
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| 87 | 87 | | 3.20June 15 of any calendar year and the fiscal year prior to the fiscal year in which the |
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| 88 | 88 | | 3.21referendum expires. The resolution becomes effective 60 days after its adoption. |
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| 89 | 89 | | 3.22 (c) A referendum expires in the last fiscal year in which the referendum generates revenue |
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| 90 | 90 | | 3.23for the school district. A school board may renew an expiring referendum under this |
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| 91 | 91 | | 3.24subdivision not more than two fiscal years before the referendum expires. |
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| 92 | 92 | | 3.25 (d) A district renewing an expiring referendum under this subdivision must submit a |
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| 93 | 93 | | 3.26copy of the adopted resolution to the commissioner and to the county auditor no later than |
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| 94 | 94 | | 3.27September 1 August 15 of the calendar year in which the written resolution is adopted fiscal |
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| 95 | 95 | | 3.28year in which the referendum expires. |
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| 96 | 96 | | 3.29 EFFECTIVE DATE.This section is effective retroactively from June 16, 2024, and |
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| 97 | 97 | | 3.30applies to school board resolutions adopted on or after that date. |
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| 98 | 98 | | 3Sec. 3. |
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| 99 | 99 | | 25-05190 as introduced03/24/25 REVISOR CR/AC |
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