Purpose of the Bill

This bill aims to prohibit outgoing elected or appointed officials from voting on new municipal debt obligations. It targets the decision-making powers of officials who are still in office after their successor has been elected or appointed.

Main Provisions

• Definition of Outgoing Official: The bill defines an "outgoing official" as a person completing their term in an elected or appointed position after their successor has been chosen.
• Voting Prohibition: Outgoing officials are required to abstain from any votes concerning the issuance of new municipal debt obligations. If such a vote occurs, the vote of an outgoing official will not be counted.
• Exception Clause: The restriction on outgoing officials does not apply if the municipal debt obligation must be approved by a majority of voters, according to section 475.58.

Significant Changes to Existing Law

• The bill introduces new subdivisions to Minnesota Statutes 2024 sections 475.51 and 475.52. These additions establish the definition of outgoing officials and set forth specific voting restrictions to prevent these officials from participating in decisions on municipal debt obligations, except in cases where voter approval is required.

Relevant Terms

outgoing official, municipal debt obligations, voting prohibition, municipal governing body, voter approval, local government, elected position, appointed position