HF3729

Purpose

This bill aims to clarify and simplify how school districts present and process voter referendums to increase revenue (funding) through property taxes. It also fixes an outdated reference to a school district referendum by petition.

Main Provisions

• Increases in revenue: If voters approve, a school district can increase revenue per adjusted pupil unit (per pupil) up to a maximum amount set on the ballot. The increase can be scheduled for multiple years and may rise each year or be tied to the inflation rate.
• Timing and elections: The referendum must occur one or two calendar years before the increased levy becomes payable, and only one election to approve an increase may be held in a calendar year. Elections are typically on the first Tuesday after the first Monday in November, unless conducted by mail.
• Ballot details: The ballot must show the maximum revenue per adjusted pupil unit and may show a year-by-year schedule or an annual inflation-based increase. It may also indicate that existing referendum authority is expiring and compare the proposed increase to the expiring levy. The ballot must designate the number of years the authorization applies (up to ten) and abbreviate “per adjusted pupil unit” as “per pupil.”
• Notice and information to taxpayers: The district must mail notice to taxpayers 15 to 45 days before the referendum, using county records to identify owners. Notices must project the anticipated tax increase per year for typical property types (e.g., residential, agricultural, apartments, commercial/industrial) and may explain how renewal of an existing levy would affect taxes.
• Text on renewal ballots: For renewals, the notice may state that the referendum extends an existing operating levy at the same per-pupil amount as the previous year.
• Revocation or reduction: A separate referendum can be held to revoke or reduce the increased revenue amount. The new per-pupil amount to be reduced must be stated. The approved revenue authority must be available for at least one year before it can be revoked or reduced in a later referendum. Only one revocation or reduction referendum can be held for any given year and years thereafter. A simple majority (50% plus one) is needed to pass.
• Post-referendum procedures: At least 15 days before the referendum, the district must provide a copy of the notice to the state commissioner and to the county auditor of each county where the district is located. Within 15 days after results are certified (or after a recount), the district must notify the commissioner of the results.

How Referendum Works (Process)

• The board calls the referendum and sets the terms on the ballot, including the maximum amount per pupil and the number of years the authority would apply.
• The ballot may express that the increase is to be extended if it’s a renewal.
• If voters approve, revenue becomes available for the years specified, subject to revocation or reduction later by a new referendum.
• The district must follow notice requirements and report results to state and local authorities.

Notice and Ballot Language Details

• Ballot wording includes a question like: “Shall the increase in the revenue proposed by petition to the board of School District No. … be approved?” and a statement about the effect on property taxes.
• A specific notice statement for renewals may say the referendum extends the existing operating referendum at the same per-pupil amount as the previous year.
• The notice must project tax increases for common property types and may compare the proposed levy to an expiring levy.

Significant Changes to Existing Law

• Clarifies and modernizes how ballot language is presented to voters, including explicit references to per pupil per adjusted pupil unit, schedules, and inflation indexing.
• Replaces an obsolete reference to “ref referendum by petition” with clearer language about how increases are approved and may be renewed.
• Adds formal notice and reporting requirements to ensure taxpayers are informed about tax impacts and to involve the commissioner and county authorities in the process.
• Establishes a defined revocation/reduction mechanism with a clear threshold (50%+1) and limits on how often revocation can occur.

Terminology and Public Language

• Key terms used in this bill include: referendum, revenue, increased revenue, referendum by petition, per adjusted pupil unit, per pupil, adjusted pupil unit, inflation, inflationary increase, expiring levy, renewal, operating referendum, notice, commissioner, county auditor, and county treasurer.

Summary of Intent

• The bill seeks to ensure voters understand what they are approving when school districts seek more funding, provide clear timing and notice requirements, specify how increases may be structured and indexed, and create a straightforward process for revoking or reducing approved revenue in a controlled way.

Relevant Terms - referendum - revenue - per adjusted pupil unit (per pupil) - adjusted pupil unit - inflation / inflationary increase - expiring levy - renewal - operating referendum - notice (section 275.60) - commissioner (state) - county auditor - county treasurer - first Tuesday after the first Monday in November - vote threshold (50% plus one) - petition (referendum by petition) - board (school district)