HF 2286

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education finance; modifying the distribution of taconite proceeds to
school districts; amending Minnesota Statutes 2006, section 298.28, subdivision
4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 298.28, subdivision 4, is amended to read:

Subd. 4.

School districts.

(a) 17.15 cents per taxable ton plus the increase provided
in paragraph (d) must be allocated to qualifying school districts to be distributed, based
upon the certification of the commissioner of revenue, under paragraphs (b) and (c),
except as otherwise provided in paragraph (f).

(b) 3.43 cents per taxable ton must be distributed to the school districts in which
the lands from which taconite was mined or quarried were located or within which the
concentrate was produced. The distribution must be based on the apportionment formula
prescribed in subdivision 2.

(c)(i) 13.72 cents per taxable ton, less any amount distributed under paragraph (e),
shall be distributed to a group of school districts comprised of those school districts which
qualify as a tax relief area under section 273.134, paragraph (b), or in which there is a
qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion
to school district indexes as follows: for each school district, its pupil units determined
under section 126C.05 for the prior school year shall be multiplied by the ratio of the
average adjusted net tax capacity per pupil unit for school districts receiving aid under
this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
Each district shall receive that portion of the distribution which its index bears to the sum
of the indices for all school districts that receive the distributions.

(ii) Notwithstanding clause (i), each school district that receives a distribution
under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this
clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on
severed mineral values after reduction for any portion distributed to cities and towns under
section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its levy
reduction under section 126C.48, subdivision 8, for the second year prior to the year of the
distribution shall receive a distribution equal to the difference; the amount necessary to
make this payment shall be derived from proportionate reductions in the initial distribution
to other school districts under clause (i).

(d) Any school district described in paragraph (c) where a levy increase pursuant to
section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 2001,
shall receive a distribution of 21.3 cents per ton. Each district shall receive deleted text begin $175 deleted text end new text begin $225 new text end
times the pupil units identified in section 126C.05, subdivision 1, enrolled in the second
previous year or the 1983-1984 school year, whichever is greater, less the product of deleted text begin 1.8 deleted text end new text begin
2.0 new text end percent times the district's taxable net tax capacity in the second previous year.

If the total amount provided by paragraph (d) is insufficient to make the payments
herein required then the entitlement of $175 per pupil unit shall be reduced uniformly
so as not to exceed the funds available. Any amounts received by a qualifying school
district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general
education aid which the district receives pursuant to section 126C.13 or the permissible
levies of the district. Any amount remaining after the payments provided in this paragraph
shall be paid to the commissioner of Iron Range resources and rehabilitation who shall
deposit the same in the taconite environmental protection fund and the Douglas J. Johnson
economic protection trust fund as provided in subdivision 11.

Each district receiving money according to this paragraph shall reserve the lesser of
the amount received under this paragraph or $25 times the number of pupil units served
in the district. It may use the money for early childhood programs or for outcome-based
learning programs that enhance the academic quality of the district's curriculum. The
outcome-based learning programs must be approved by the commissioner of education.

(e) There shall be distributed to any school district the amount which the school
district was entitled to receive under section 298.32 in 1975.

deleted text begin (f) Effective for the distribution in 2003 only, five percent of the distributions to
school districts under paragraphs (b), (c), and (e); subdivision 6, paragraph (c); subdivision
11; and section , shall be distributed to the general fund. The remainder less any
portion distributed to cities and towns under section deleted text begin 126C.48, subdivision 8 deleted text end , paragraph
(5), shall be distributed to the Douglas J. Johnson economic protection trust fund created
in section . Fifty percent of the amount distributed to the Douglas J. Johnson
economic protection trust fund shall be made available for expenditure under section
as governed by section . Effective in 2003 only, 100 percent of the
distributions to school districts under section less any portion distributed to
cities and towns under section deleted text begin 126C.48, subdivision 8 deleted text end , paragraph (5), shall be distributed
to the general fund.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2009.
new text end