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A bill for an act
relating to education finance; modifying the operating referendum ballot notice;
eliminating the authority for the school board to renew a referendum without
seeking voter approval unless notice requirements are met; amending Minnesota
Statutes 2024, section 126C.17, subdivision 9, by adding a subdivision; Minnesota
Statutes 2025 Supplement, section 126C.17, subdivision 9b.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 126C.17, subdivision 9, is amended to read:
Subd. 9.
Referendum revenue.
(a) The revenue authorized by section
126C.10,
subdivision 1
, may be increased in the amount approved by the voters of the district at a
referendum called for the purpose. The referendum may be called by the board. The
referendum must be conducted one or two calendar years before the increased levy authority,
if approved, first becomes payable. Only one election to approve an increase may be held
in a calendar year. Unless the referendum is conducted by mail under subdivision 11,
paragraph (a), the referendum must be held on the first Tuesday after the first Monday in
November. The ballot must state the maximum amount of the increased revenue per adjusted
pupil unit. The ballot may state a schedule, determined by the board, of increased revenue
per adjusted pupil unit that differs from year to year over the number of years for which the
increased revenue is authorized or may state that the amount shall increase annually by the
rate of inflation. For this purpose, the rate of inflation shall be the annual inflationary increase
calculated under subdivision 2, paragraph (b). The ballot may state that existing referendum
levy authority is expiring. In this case, the ballot may also compare the proposed levy
authority to the existing expiring levy authority, and express the proposed increase as the
amount, if any, over the expiring referendum levy authority. The ballot must designate the
specific number of years, not to exceed ten, for which the referendum authorization applies.
The ballot, including a ballot on the question to revoke or reduce the increased revenue
amount under paragraph (c), must abbreviate the term "per adjusted pupil unit" as "per
pupil." The notice required under section
275.60
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may be modified to read, in cases of
renewing existing levies at the same amount per pupil as in the previous year:
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must conform
to the requirements of subdivision 9c.
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"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING TO
EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS SCHEDULED
TO EXPIRE."
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The ballot may contain a textual portion with the information required in this subdivision
and a question stating substantially the following:
"Shall the increase in the revenue proposed by (petition to) the board of ......., School
District No. .., be approved?"
If approved, an amount equal to the approved revenue per adjusted pupil unit times the
adjusted pupil units for the school year beginning in the year after the levy is certified shall
be authorized for certification for the number of years approved, if applicable, or until
revoked or reduced by the voters of the district at a subsequent referendum.
(b) The board must deliver by mail at least 15 days but no more than 45 days before the
day of the referendum to each taxpayer a notice of the referendum and the proposed revenue
increase. The board need not mail more than one notice to any taxpayer. For the purpose
of giving mailed notice under this subdivision, owners must be those shown to be owners
on the records of the county auditor or, in any county where tax statements are mailed by
the county treasurer, on the records of the county treasurer. Every property owner whose
name does not appear on the records of the county auditor or the county treasurer is deemed
to have waived this mailed notice unless the owner has requested in writing that the county
auditor or county treasurer, as the case may be, include the name on the records for this
purpose. The notice must project the anticipated amount of tax increase in annual dollars
for typical residential homesteads, agricultural homesteads, apartments, and
commercial-industrial property within the school district.
The notice for a referendum may state that an existing referendum levy is expiring and
project the anticipated amount of increase over the existing referendum levy in the first
year, if any, in annual dollars for typical residential homesteads, agricultural homesteads,
apartments, and commercial-industrial property within the district.
The notice must include the following statement: "Passage of this referendum will result
in an increase in your property taxes." However, in cases of renewing existing levies, the
notice may include the following statement: "Passage of this referendum extends an existing
operating referendum at the same amount per pupil as in the previous year."
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The notice
must also include the following statement: "This referendum may be renewed once for an
additional term by vote of the school board."
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(c) A referendum on the question of revoking or reducing the increased revenue amount
authorized pursuant to paragraph (a) may be called by the board. A referendum to revoke
or reduce the revenue amount must state the amount per adjusted pupil unit by which the
authority is to be reduced. Revenue authority approved by the voters of the district pursuant
to paragraph (a) must be available to the school district at least once before it is subject to
a referendum on its revocation or reduction for subsequent years. Only one revocation or
reduction referendum may be held to revoke or reduce referendum revenue for any specific
year and for years thereafter.
(d) The approval of 50 percent plus one of those voting on the question is required to
pass a referendum authorized by this subdivision.
(e) At least 15 days before the day of the referendum, the district must submit a copy of
the notice required under paragraph (b) to the commissioner and to the county auditor of
each county in which the district is located. Within 15 days after the results of the referendum
have been certified by the board, or in the case of a recount, the certification of the results
of the recount by the canvassing board, the district must notify the commissioner of the
results of the referendum.
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EFFECTIVE DATE.
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This section is effective for referenda conducted on or after July
1, 2026.
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Sec. 2.
Minnesota Statutes 2025 Supplement, 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, including an expiring
referendum that was approved or adopted under section
123A.73, subdivision 4
or 5, by
board action
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only if the initial referendum approved by the voters under subdivision 9
contained in its notice the statement "This referendum may be renewed once for an additional
term by vote of the school board." and,
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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, except as provided under section
123A.73, subdivision 4
or 5;
(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 on or after July 1 of the second
fiscal year prior to the fiscal year in which the referendum expires, but no later than June
15 of the fiscal year prior to the fiscal year in which the referendum expires. The resolution
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.
(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
August 15 of the fiscal year in which the referendum expires.
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EFFECTIVE DATE.
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This section is effective for referenda conducted on or after July
1, 2026.
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Sec. 3.
Minnesota Statutes 2024, section 126C.17, is amended by adding a subdivision to
read:
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Subd. 9c.
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Ballot to state taxpayer impact.
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(a) A school district must include on the
ballot the notice required under section 275.60 except as provided in paragraphs (b) and
(c).
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(b) For an operating referendum enacted after July 1, 2026, a school board must not
renew the referendum by board action under subdivision 9b unless the ballot notice states
the following:
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"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING FOR A
PROPERTY TAX INCREASE. THIS REFERENDUM MAY BE RENEWED ONCE FOR
AN ADDITIONAL TERM BY VOTE OF THE SCHOOL BOARD."
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(c) Beginning July 1, 2026, for an operating referendum renewing an existing operating
levy at the same amount per pupil as in the previous year, the notice under section 275.60
may be modified to read:
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"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING TO
EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS SCHEDULED
TO EXPIRE. THIS REFERENDUM MAY BE RENEWED ONCE FOR AN ADDITIONAL
TERM BY VOTE OF THE SCHOOL BOARD."
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EFFECTIVE DATE.
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This section is effective for referenda conducted on or after July
1, 2026.
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