HF 655

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to education; modifying definition of maximum 
  1.3             effort debt service levy; modifying loan repayment 
  1.4             account; amending Minnesota Statutes 1998, sections 
  1.5             126C.63, subdivision 8; and 126C.65, subdivisions 4 
  1.6             and 5. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 126C.63, 
  1.9   subdivision 8, is amended to read: 
  1.10     Subd. 8.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 
  1.11  effort debt service levy" means the lesser of: 
  1.12     (1) a levy in whichever of the following amounts is 
  1.13  applicable: 
  1.14     (a) in any district receiving a debt service loan without 
  1.15  an outstanding capital loan, for a debt service levy payable in 
  1.16  2000 and thereafter, a levy in a total dollar amount computed at 
  1.17  a rate of 20 percent, not adjusted by Laws 1997, First Special 
  1.18  Session chapter 4, article 1, section 61, subdivision 2, of 
  1.19  adjusted net tax capacity for taxes payable in 2000 and 
  1.20  thereafter; 
  1.21     (b) in any district receiving a debt service loan for a 
  1.22  debt service levy payable in 1991 and thereafter, or granted a 
  1.23  capital loan after January 1, 1990, a levy in a total dollar 
  1.24  amount computed at a rate of 20 percent of adjusted net tax 
  1.25  capacity for taxes payable in 1991 and thereafter; 
  1.26     (b) (c) in any district granted a debt service loan after 
  2.1   July 31, 1981, or granted a capital loan which is approved after 
  2.2   July 31, 1981, a levy in a total dollar amount computed as a tax 
  2.3   rate of 13.08 percent on the adjusted gross tax capacity for 
  2.4   taxes payable in 1990 or a tax rate of 18.42 percent on the 
  2.5   adjusted net tax capacity for taxes payable in 1991 and 
  2.6   thereafter; 
  2.7      (c) (d) in any district granted a debt service loan before 
  2.8   August 1, 1981, or granted a capital loan which was approved 
  2.9   before August 1, 1981, a levy in a total dollar amount computed 
  2.10  as a tax rate of 12.26 percent on the adjusted gross tax 
  2.11  capacity for taxes payable in 1990 or a tax rate of 17.17 
  2.12  percent on the adjusted net tax capacity for taxes payable in 
  2.13  1991 and thereafter, until and unless the district receives an 
  2.14  additional loan; or 
  2.15     (2) a levy in whichever of the following amounts is 
  2.16  applicable: 
  2.17     (a) in any district which received a debt service or 
  2.18  capital loan from the state before January 1, 1965, a levy in a 
  2.19  total dollar amount computed as 4.10 mills on the market value 
  2.20  in each year, unless the district applies or has applied for an 
  2.21  additional loan subsequent to January 1, 1965, or issues or has 
  2.22  issued bonds on the public market, other than bonds refunding 
  2.23  state loans, subsequent to January 1, 1967; 
  2.24     (b) in any district granted a debt service or capital loan 
  2.25  between January 1, 1965, and July 1, 1969, a levy in a total 
  2.26  dollar amount computed as 5-1/2 mills on the market value in 
  2.27  each year, until and unless the district receives an additional 
  2.28  loan; 
  2.29     (c) in any district granted a debt service or capital loan 
  2.30  between July 1, 1969, and July 1, 1975, a levy in a total dollar 
  2.31  amount computed as 6.3 mills on market value in each year until 
  2.32  and unless the district has received an additional loan; 
  2.33     (d) in any district for which a capital loan was approved 
  2.34  prior to August 1, 1981, a levy in a total dollar amount equal 
  2.35  to the sum of the amount of the required debt service levy and 
  2.36  an amount which when levied annually will in the opinion of the 
  3.1   commissioner be sufficient to retire the remaining interest and 
  3.2   principal on any outstanding loans from the state within 30 
  3.3   years of the original date when the capital loan was granted.  
  3.4   The board in any district affected by the provisions of clause 
  3.5   (2)(d) may elect instead to determine the amount of its levy 
  3.6   according to the provisions of clause (1).  If a district's 
  3.7   capital loan is not paid within 30 years because it elects to 
  3.8   determine the amount of its levy according to the provisions of 
  3.9   clause (2)(d), the liability of the district for the amount of 
  3.10  the difference between the amount it levied under clause (2)(d) 
  3.11  and the amount it would have levied under clause (1), and for 
  3.12  interest on the amount of that difference, must not be satisfied 
  3.13  and discharged pursuant to Minnesota Statutes 1988, or an 
  3.14  earlier edition of Minnesota Statutes if applicable, section 
  3.15  124.43, subdivision 4. 
  3.16     Sec. 2.  Minnesota Statutes 1998, section 126C.65, 
  3.17  subdivision 4, is amended to read: 
  3.18     Subd. 4.  [LOAN REPAYMENT ACCOUNT.] A loan repayment 
  3.19  account must be maintained.  All principal and interest paid by 
  3.20  districts on debt service loans and capital loans made under 
  3.21  section 126C.68 or 126C.69 must be paid into the account.  The 
  3.22  state's cost of administering the Maximum Effort School Aid Law 
  3.23  must be paid out of this account, to an amount not exceeding 
  3.24  $10,000 in any year.  As soon as possible in each year after the 
  3.25  committee has determined the ratio existing between the correct 
  3.26  market value of all taxable property in each school district in 
  3.27  the state and the "market value in money" of such property as 
  3.28  recorded in accordance with section 270.13, the commissioner of 
  3.29  revenue shall prepare a list of all such ratios.  The clerical 
  3.30  costs of preparing the list must be paid as a cost of 
  3.31  administration of the Maximum Effort School Aid Law.  The 
  3.32  documents division of the department of administration may 
  3.33  publish and sell copies of the list.  The sums required to pay 
  3.34  the principal of and interest on all school loan bonds as 
  3.35  provided in section 126C.72 must be transferred out of the loan 
  3.36  repayment account to the state bond fund.  On December 1 of each 
  4.1   year, there shall be transferred out of the loan repayment 
  4.2   account to the state bond fund, the sums required to pay the 
  4.3   principal of and interest on all school loan bonds as provided 
  4.4   in section 126C.72.  If the school loan bonds have been retired, 
  4.5   then on December 1, any balance in the loan repayment account 
  4.6   shall be transferred to the state bond fund. 
  4.7      Sec. 3.  Minnesota Statutes 1998, section 126C.65, 
  4.8   subdivision 5, is amended to read: 
  4.9      Subd. 5.  [EXCESS MONEY IN LOAN REPAYMENT ACCOUNT.] The 
  4.10  commissioner shall transfer from the loan repayment account to 
  4.11  the credit of the debt service loan account on November 1 of 
  4.12  each year all money deposited to the credit of the loan 
  4.13  repayment account that is not required for the payment of 
  4.14  principal and interest and costs as prescribed in subdivision 4 
  4.15  but that is needed for debt service loans in the, any additional 
  4.16  amount needed for debt service loans then agreed to be made in 
  4.17  the next fiscal year beginning July 1, and those moneys are 
  4.18  annually appropriated to that account for the purposes 
  4.19  prescribed by the Maximum Effort School Aid Law.  Money 
  4.20  deposited to the credit of the loan repayment account and not 
  4.21  required for the transfers or for the payment of principal and 
  4.22  interest due on school loan bonds may be invested and reinvested 
  4.23  in securities which are general obligations of the United States 
  4.24  or the state of Minnesota.  When all school loan bonds have been 
  4.25  fully paid with interest accrued thereon, the balance remaining 
  4.26  in the account must be transferred to the state bond fund.