SF3571

Purpose

• Clarify referendum ballot language by correcting an obsolete reference to a school district referendum by petition.
• Ensure the process for increasing or renewing revenue for school districts is clear to voters and aligned with current law, specifically relating to Minnesota Statutes 2024 section 126C.17 subdivision 9.

Main provisions

• Referendum revenue authority: Revenue authorized by section 126C.10 subdivision 1 may be increased if approved by voters in a district-wide referendum called for that purpose. The referendum may be held one or two calendar years before the increased levy becomes payable, and only one election to approve the increase may occur in a calendar year.
• Timing and ballot details: If not conducted by mail, the election must be held on the first Tuesday after the first Monday in November. The ballot must state the maximum amount of increased revenue per adjusted pupil unit, and may set a schedule or allow inflation-based increases. The ballot may also compare the proposed increase to any expiring referendum levy and indicate the number of years (up to 10) for which the authority applies.
• Abbreviations and wording: The ballot must abbreviate “per adjusted pupil unit” as “per pupil.”
• Notices and tax impacts: The school board must mail notice to each taxpayer 15 to 45 days before the referendum, using property owner records. Notices must project the anticipated tax increase for typical residential, agricultural, apartment, and commercial/industrial properties. Notices may also explain if an existing levy is expiring and show the first-year impact of the renewal.
• Voter question and results: The ballot may present a textual explanation and a question asking if the proposed increase should be approved. If approved, the designated revenue per adjusted pupil unit applies for the specified number of years and may be renewed or adjusted in future referenda.
• Revocation or reduction: There is a separate referendum to revoke or reduce the increased revenue amount, which must state the amount per adjusted pupil unit by which authority would be reduced. Such revocation or reduction requires a 50% plus one majority and may occur only after the initial authority has been in place at least once.
• Reporting and compliance: Before the referendum, districts must share a copy of the notice with the commissioner and the county auditor in each county where the district is located. After results are certified, districts must notify the commissioner.

Key changes to existing law

• Updates to ballot language and terminology, notably replacing unclear or obsolete references and standardizing the term “per pupil” instead of “per adjusted pupil unit” on ballots.
• Adds or clarifies specific notice requirements and tax impact disclosures to help voters understand financial implications.
• Clarifies that ballot timing is linked to when revenue becomes payable and confirms restrictions on having more than one increase vote in a single year.
• Establishes a formal process for revocation or reduction of approved revenue, including required majorities and a minimum waiting period.

Administrative and procedural details

• Election timing: Referendum can occur one or two years before revenue becomes payable; if not by mail, the election occurs on the standard November date (first Tuesday after the first Monday).
• Notice and disclosure: Mandatory mailed notices to taxpayers 15–45 days before the referendum, with projected tax impact by property type.
• Abbreviations and language: Ballots must use the abbreviation “per pupil” for readability and consistency.
• Oversight and reporting: Districts must inform the commissioner and county auditors of notices and referendum outcomes; revocation or reduction processes require specific majorities and are subject to future referenda rules.

Impact and intent

• Improves transparency by standardizing ballot language and including clear tax impact information for voters.
• Reduces potential confusion from outdated terminology and references.
• Provides a clear framework for approving, renewing, renewing with inflation, and potentially revoking school district revenue authority.

Relevant Terms - referendum revenue - per adjusted pupil unit (per pupil) - adjusted pupil units - inflationary increase - expiring referendum levy - ballot - board (school district) - district - tax statements - property taxes - commissioner - county auditor - notice of referendum - mailed notice - majority (50 percent plus one) - revocation - reduction - first Tuesday after the first Monday in November - petition (referendum by petition; context of obsolete reference)