HF 25

as introduced - 82nd Legislature, 2001 1st Special Session (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the financing and operation of government 
  1.3             in this state; providing for payment of a sales tax 
  1.4             rebate; enhancing Minnesota's elementary and secondary 
  1.5             school system by providing all school district 
  1.6             operating funds through state aids; making changes to 
  1.7             income, sales and use, property, and special taxes; 
  1.8             abolishing certain health care provider taxes and 
  1.9             providing for deposit of certain tobacco settlement 
  1.10            and cigarette tax proceeds to the health care access 
  1.11            fund; providing for state takeover of certain county 
  1.12            costs; providing for taxation of minerals; providing 
  1.13            for taxation and incentive payments on forest lands; 
  1.14            changing certain provisions relating to biomass 
  1.15            facilities; providing for certain payments in lieu of 
  1.16            property taxes; providing special authority to certain 
  1.17            political subdivisions; changing certain local 
  1.18            government aids; providing disaster relief; 
  1.19            appropriating money; amending Minnesota Statutes 2000, 
  1.20            sections 62J.041, subdivision 1; 62Q.095, subdivision 
  1.21            6; 88.49, subdivisions 5, 9a; 88.491, subdivision 2; 
  1.22            97A.065, subdivision 2; 116J.424; 123A.39, subdivision 
  1.23            3; 123A.41, subdivision 4; 123A.444; 123A.485, 
  1.24            subdivisions 1, 3; 123A.67, subdivision 3; 123A.73, 
  1.25            subdivisions 9, 12; 123A.76; 123B.53, subdivisions 4, 
  1.26            5; 123B.54; 123B.57, subdivisions 1, 3, 5; 123B.59, 
  1.27            subdivisions 1, 2, 4, 6, 7; 123B.61; 123B.62; 123B.75, 
  1.28            by adding a subdivision; 124D.135, subdivisions 1, 6; 
  1.29            124D.20, subdivision 1; 124D.22, subdivision 2; 
  1.30            124D.56, subdivision 1; 124D.86, subdivision 5; 
  1.31            126C.13, subdivisions 1, 2, 3, 4; 126C.14; 126C.41, 
  1.32            subdivisions 1, 3, 4; 126C.42, subdivisions 1, 2, 3, 
  1.33            4; 126C.43, subdivisions 1, 2, 3, 4, 5, 6; 126C.44; 
  1.34            126C.45; 126C.48, subdivision 8; 179A.101, subdivision 
  1.35            1; 179A.102, subdivision 6; 179A.103, subdivision 1; 
  1.36            214.16, subdivisions 2, 3; 216B.2424, subdivision 5; 
  1.37            260.765, by adding a subdivision; 260.771, by adding a 
  1.38            subdivision; 270A.03, subdivision 7; 270B.01, 
  1.39            subdivision 8; 270B.14, subdivision 1; 272.02, by 
  1.40            adding subdivisions; 273.13, subdivision 25; 273.134; 
  1.41            273.135, subdivisions 1, 2; 273.136, subdivision 2; 
  1.42            273.1391, subdivisions 2, 3; 273.1398, subdivision 4a, 
  1.43            by adding subdivisions; 276A.01, subdivision 2; 
  1.44            290.01, subdivision 19b; 290.067, subdivision 1; 
  1.45            290.0674, subdivisions 1, 2; 297A.61, subdivision 12; 
  1.46            297A.62, subdivision 3; 297A.67, by adding a 
  2.1             subdivision; 297A.71, by adding subdivisions; 297A.75; 
  2.2             297B.03; 297E.02, subdivisions 1, 4, 6; 297F.10, 
  2.3             subdivision 1; 297H.06, by adding a subdivision; 
  2.4             298.018, subdivisions 1, 2; 298.17; 298.22, 
  2.5             subdivision 2, by adding a subdivision; 298.2211, 
  2.6             subdivision 2; 298.2213, subdivision 3; 298.2214, 
  2.7             subdivision 1; 298.223, subdivision 1; 298.225, 
  2.8             subdivision 1; 298.24, subdivision 1; 298.27; 298.28, 
  2.9             subdivisions 1, 3, 4, 6, 7, 9, 9a, 9b, 10, 11, 15; 
  2.10            298.282, subdivision 1; 298.292, subdivision 2; 
  2.11            298.293; 298.296, subdivision 2; 298.2961; 298.298; 
  2.12            298.75, subdivisions 1, 2, 7; 299D.03, subdivision 5; 
  2.13            357.021, subdivision 1a; 471.58; 477A.011, subdivision 
  2.14            36; 477A.0121, by adding a subdivision; 477A.0122, by 
  2.15            adding a subdivision; 477A.03, subdivision 2, by 
  2.16            adding a subdivision; 477A.12; 477A.14; 480.181, 
  2.17            subdivision 1; 487.33, subdivision 5; 574.34, 
  2.18            subdivision 1; Laws 1999, chapter 216, article 7, 
  2.19            section 46, subdivision 3; Laws 1999, chapter 243, 
  2.20            article 4, section 19; Laws 2000, chapter 490, article 
  2.21            8, section 17; proposing coding for new law in 
  2.22            Minnesota Statutes, chapters 12; 16A; 62Q; 126C; 127A; 
  2.23            144F; 245; 256L; 272; 471; 480; 484; proposing coding 
  2.24            for new law as Minnesota Statutes, chapter 290C; 
  2.25            repealing Minnesota Statutes 2000, sections 13.4967, 
  2.26            subdivision 3; 16A.76; 62T.10; 123B.57, subdivisions 
  2.27            4, 7; 123B.59, subdivision 5; 124D.135, subdivisions 
  2.28            3, 4; 124D.20, subdivisions 5, 6, 7; 124D.56, 
  2.29            subdivisions 2, 3; 124D.86, subdivision 4; 126C.10, 
  2.30            subdivisions 10, 11, 21, 22; 144.1484, subdivision 2; 
  2.31            256L.02, subdivision 3; 270.31; 270.32; 270.33; 
  2.32            270.34; 270.35; 270.36; 270.37; 270.38; 270.39; 
  2.33            273.1382; 275.08, subdivision 1e; 295.50; 295.51; 
  2.34            295.52; 295.53; 295.54; 295.55; 295.56; 295.57; 
  2.35            295.58; 295.582; 295.59. 
  2.36  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.37                             ARTICLE 1 
  2.38                         EDUCATION FINANCE 
  2.39     Section 1.  Minnesota Statutes 2000, section 123A.39, 
  2.40  subdivision 3, is amended to read: 
  2.41     Subd. 3.  [RETIREMENT AND SEVERANCE LEVY AID.] A 
  2.42  cooperating or combined district that levied under Minnesota 
  2.43  Statutes 1996, section 124.2725, subdivision 3, for taxes 
  2.44  payable in 1995 may levy is eligible for state aid for severance 
  2.45  pay or early retirement incentives for licensed and nonlicensed 
  2.46  employees who retire early as a result of the cooperation or 
  2.47  combination. 
  2.48     Sec. 2.  Minnesota Statutes 2000, section 123A.41, 
  2.49  subdivision 4, is amended to read: 
  2.50     Subd. 4.  [TRANSITIONAL LEVY AID.] The board of the 
  2.51  combined district, or the boards of combining districts that 
  2.52  have received voter approval for the combination under section 
  2.53  123A.37, subdivision 2, may levy for are eligible for state aid 
  3.1   equal to the expenses of negotiation, administrative expenses 
  3.2   directly related to the transition from cooperation to 
  3.3   combination, and the cost of necessary new athletic and music 
  3.4   uniforms.  The board or boards may levy this amount over three 
  3.5   or fewer years.  All expenses must be approved by the 
  3.6   commissioner of children, families, and learning.  
  3.7      Sec. 3.  Minnesota Statutes 2000, section 123A.444, is 
  3.8   amended to read: 
  3.9      123A.444 [LEVY STATE AID FOR SEVERANCE PAY.] 
  3.10     A joint powers board established under section 123A.443 may 
  3.11  make a levy is eligible for state aid to provide severance pay 
  3.12  and early retirement incentives under section 122A.48, for any 
  3.13  teacher as defined under section 122A.40, subdivision 1, who is 
  3.14  placed on unrequested leave as a result of the cooperative 
  3.15  secondary facility agreement.  A joint powers board making a 
  3.16  levy must certify to each participating district tax levies 
  3.17  sufficient to raise the amount necessary to provide the 
  3.18  district's portion of severance pay and early retirement 
  3.19  incentives.  The tax levy certified to each district must be 
  3.20  expressed as a local tax rate, that, when applied to the 
  3.21  adjusted net tax capacity of all of the participating districts 
  3.22  raises the amount necessary to provide severance pay and early 
  3.23  retirement incentives.  Each participating school district must 
  3.24  include the levy in the next tax roll which it shall certify to 
  3.25  the county auditor, and must remit the collections of the levy 
  3.26  to the joint powers board. 
  3.27     Sec. 4.  Minnesota Statutes 2000, section 123A.485, 
  3.28  subdivision 1, is amended to read: 
  3.29     Subdivision 1.  [ELIGIBILITY AND USE.] A district that has 
  3.30  been reorganized after June 30, 1994, under section 123A.48 is 
  3.31  eligible for consolidation transition revenue.  Revenue is equal 
  3.32  to the sum of aid under subdivision 2 and levy under subdivision 
  3.33  3 aid.  Consolidation transition revenue aid may only be used 
  3.34  according to this section.  Revenue Aid must be used for the 
  3.35  following purposes and may be distributed among these purposes 
  3.36  at the discretion of the district: 
  4.1      (1) to offer early retirement incentives as provided by 
  4.2   section 123A.48, subdivision 23; 
  4.3      (2) to reduce operating debt as defined in section 123B.82; 
  4.4      (3) to enhance learning opportunities for students in the 
  4.5   reorganized district; and 
  4.6      (4) for other costs incurred in the reorganization. 
  4.7      Revenue Aid received and utilized under clause (3) or (4) 
  4.8   may be expended for operating purposes, facilities, and/or 
  4.9   equipment.  
  4.10     Sec. 5.  Minnesota Statutes 2000, section 123A.485, 
  4.11  subdivision 3, is amended to read: 
  4.12     Subd. 3.  [LEVY ADDITIONAL AID.] If the aid available in 
  4.13  subdivision 2 is insufficient to cover the costs of the district 
  4.14  under section 123A.48, subdivision 23, the district may levy the 
  4.15  difference over a period of time not to exceed three years apply 
  4.16  to the commissioner of children, families, and learning for 
  4.17  state aid in an amount not to exceed the unreimbursed costs 
  4.18  incurred by the district.  
  4.19     Sec. 6.  Minnesota Statutes 2000, section 123A.67, 
  4.20  subdivision 3, is amended to read: 
  4.21     Subd. 3.  [REIMBURSEMENT; SPECIAL LEVY STATE AID.] (a) 
  4.22  Liabilities of a dissolved district existing at the time of the 
  4.23  attachment other than bonded debt within the purview of 
  4.24  subdivision 2 must be obligations of the consolidated district 
  4.25  after attachment (in the amount and kind determined by the 
  4.26  commissioner according to subdivision 1, where a dissolved 
  4.27  district is divided), for the payment of which the consolidated 
  4.28  district has a right to reimbursement by special levy or 
  4.29  levies state aid.  The amount of reimbursement will be equal to 
  4.30  the liabilities of the dissolved district for which the 
  4.31  consolidated district is obligated less the aggregate of the 
  4.32  following which has been or will be received by the consolidated 
  4.33  district at or after the time of attachment from or as a result 
  4.34  of the dissolution and attachment of the dissolved district: 
  4.35     (1) all taxes inuring to the consolidating district upon 
  4.36  levies made by the dissolved district; 
  5.1      (2) all cash, bank accounts, investments, and other current 
  5.2   assets; 
  5.3      (3) earned state aids of the dissolved districts; 
  5.4      (4) returns from the sale of property of the dissolved 
  5.5   district. 
  5.6      (b) The amount of such special levy so computed shall be 
  5.7   certified to the county auditor with the other tax requirements 
  5.8   of the consolidated district but separately stated and 
  5.9   identified.  The auditor shall add the amount of special levy so 
  5.10  certified to the school rate for the territory in the 
  5.11  consolidated district which came from the dissolved district and 
  5.12  include it in the levy on the taxable property in that 
  5.13  territory.  The county auditor shall not spread more of the 
  5.14  amount certified for special levy in any year than will amount 
  5.15  to 20 percent of the school levy without the special levy, 
  5.16  leaving the remaining part of the certified amount for levy in 
  5.17  successive years without further certification.  Any amount of 
  5.18  reimbursement to which it is entitled omitted by the 
  5.19  consolidated district from its initial certification for special 
  5.20  levy may be certified in a subsequent year for levy in the same 
  5.21  manner as the levy upon initial certification. 
  5.22     The levy authorized by this subdivision shall be in 
  5.23  addition to those otherwise authorized for a district the 
  5.24  special state aid shall be approved by the commissioner of 
  5.25  children, families, and learning.  
  5.26     Sec. 7.  Minnesota Statutes 2000, section 123A.73, 
  5.27  subdivision 9, is amended to read: 
  5.28     Subd. 9.  [REORGANIZATION OPERATING DEBT LEVIES.] (a) A 
  5.29  district that receives revenue under section 123A.39, 
  5.30  subdivision 3, for cooperation or has combined according to 
  5.31  sections 123A.35 to 123A.43 may levy is eligible for state aid 
  5.32  to eliminate reorganization operating debt as defined in section 
  5.33  123B.82, clause (1).  The amount of the debt must be certified 
  5.34  over a period of five years.  After the effective date of 
  5.35  combination according to sections 123A.35 to 123A.43, the levy 
  5.36  may be certified and spread either 
  6.1      (1) only on the property in the combined district that 
  6.2   would have been taxable in the preexisting district that 
  6.3   incurred the debt, or 
  6.4      (2) on all of the taxable property in the combined district.
  6.5      (b) A district that has reorganized according to section 
  6.6   123A.46 or 123A.48 may levy is eligible for state aid to 
  6.7   eliminate reorganization operating debt as defined in section 
  6.8   123B.82, clause (2).  The amount of debt must be certified over 
  6.9   a period not to exceed five years and may be spread either 
  6.10     (1) only on the property in the newly created or enlarged 
  6.11  district which was taxable in the preexisting district that 
  6.12  incurred the debt, or 
  6.13     (2) on all of the taxable property in the newly created or 
  6.14  enlarged district. 
  6.15     Sec. 8.  Minnesota Statutes 2000, section 123A.73, 
  6.16  subdivision 12, is amended to read: 
  6.17     Subd. 12.  [LEVY STATE AID FOR SEVERANCE PAY OR EARLY 
  6.18  RETIREMENT INCENTIVES.] The board of a newly created or enlarged 
  6.19  district to which part or all of a dissolved district was 
  6.20  attached according to section 123A.46 may levy is eligible for 
  6.21  state aid for severance pay or early retirement incentives for 
  6.22  licensed and nonlicensed employees who resign or retire early as 
  6.23  a result of the dissolution or consolidation, if the 
  6.24  commissioner approves the incentives and the amount to be 
  6.25  levied.  The amount may be levied over a period of up to five 
  6.26  years and must be spread in whole or in part on the property of 
  6.27  a preexisting district or the newly created or enlarged 
  6.28  district, as determined by the board of the newly created or 
  6.29  enlarged district of state aid. 
  6.30     Sec. 9.  Minnesota Statutes 2000, section 123A.76, is 
  6.31  amended to read: 
  6.32     123A.76 [EXPENSES OF TRANSITION.] 
  6.33     The board of a district to which a dissolved district is 
  6.34  attached pursuant to section 123A.46, may, for the purpose of 
  6.35  paying the expenses of negotiations and other administrative 
  6.36  expenses relating to the transition, enter into agreements with 
  7.1   banks or any person to take its orders at any rate of interest 
  7.2   not to exceed seven percent per annum.  These orders shall be 
  7.3   paid by the treasurer of the district from district funds after 
  7.4   the effective date of the dissolution and attachment.  
  7.5   Notwithstanding the provisions of sections 124D.22, 126C.40 to 
  7.6   126C.45, and 126C.48, the district may, in the year the 
  7.7   dissolution and attachment becomes effective, levy receive state 
  7.8   aid in an amount equal to the amount of the orders issued 
  7.9   pursuant to this subdivision and the interest on these orders.  
  7.10  No district shall issue orders for funds or make a levy pursuant 
  7.11  receive state aid according to this subdivision without the 
  7.12  commissioner's approval of the expenses to be paid with the 
  7.13  funds from the orders and levy state aid. 
  7.14     Sec. 10.  Minnesota Statutes 2000, section 123B.53, 
  7.15  subdivision 4, is amended to read: 
  7.16     Subd. 4.  [DEBT SERVICE EQUALIZATION REVENUE.] The debt 
  7.17  service equalization revenue of a district equals the eligible 
  7.18  debt service revenue minus the amount raised by a levy of 12 
  7.19  five percent times the adjusted net tax capacity of the district.
  7.20     Sec. 11.  Minnesota Statutes 2000, section 123B.53, 
  7.21  subdivision 5, is amended to read: 
  7.22     Subd. 5.  [EQUALIZED DEBT SERVICE LEVY.] To obtain debt 
  7.23  service equalization revenue, a district must levy an amount not 
  7.24  to exceed the district's debt service equalization revenue times 
  7.25  the lesser of one or the ratio of: 
  7.26     (1) the quotient derived by dividing the adjusted net tax 
  7.27  capacity of the district for the year before the year the levy 
  7.28  is certified by the adjusted pupil units in the district for the 
  7.29  school year ending in the year prior to the year the levy is 
  7.30  certified; to 
  7.31     (2) $4,000 $10,000. 
  7.32     Sec. 12.  Minnesota Statutes 2000, section 123B.54, is 
  7.33  amended to read: 
  7.34     123B.54 [DEBT SERVICE APPROPRIATION.] 
  7.35     (a) $33,141,000 in fiscal year 2000, $29,400,000 in fiscal 
  7.36  year 2001, $26,934,000 in fiscal year 2002, and 
  8.1   $24,540,000 $161,540,000 in fiscal year 2003 and each year 
  8.2   thereafter is appropriated from the general fund to the 
  8.3   commissioner of children, families, and learning for payment of 
  8.4   debt service equalization aid under section 123B.53.  
  8.5      (b) The appropriations in paragraph (a) must be reduced by 
  8.6   the amount of any money specifically appropriated for the same 
  8.7   purpose in any year from any state fund. 
  8.8      Sec. 13.  Minnesota Statutes 2000, section 123B.57, 
  8.9   subdivision 1, is amended to read: 
  8.10     Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] To receive 
  8.11  health and safety revenue for any fiscal year a district must 
  8.12  submit to the commissioner an application for aid and levy by 
  8.13  the date determined by the commissioner.  The application may be 
  8.14  for hazardous substance removal, fire and life safety code 
  8.15  repairs, labor and industry regulated facility and equipment 
  8.16  violations, and health, safety, and environmental management, 
  8.17  including indoor air quality management.  The application must 
  8.18  include a health and safety program adopted by the school 
  8.19  district board.  The program must include the estimated cost, 
  8.20  per building, of the program by fiscal year.  Upon approval 
  8.21  through the adoption of a resolution by each of an intermediate 
  8.22  district's member school district boards and the approval of the 
  8.23  department of children, families, and learning, a school 
  8.24  district may include its proportionate share of the costs of 
  8.25  health and safety projects for an intermediate district in its 
  8.26  application. 
  8.27     Sec. 14.  Minnesota Statutes 2000, section 123B.57, 
  8.28  subdivision 3, is amended to read: 
  8.29     Subd. 3.  [HEALTH AND SAFETY REVENUE.] A district's health 
  8.30  and safety revenue for a fiscal year equals: 
  8.31     (1) the sum of (a) the total approved cost of the 
  8.32  district's hazardous substance plan for fiscal years 1985 
  8.33  through 1989, plus (b) the total approved cost of the district's 
  8.34  health and safety program for fiscal year 1990 through the 
  8.35  current fiscal year to which the levy is attributable, minus 
  8.36     (2) the sum of (a) the district's total hazardous substance 
  9.1   aid and levy for fiscal years 1985 through 1989 under sections 
  9.2   124.245 and 275.125, subdivision 11c, plus (b) the district's 
  9.3   health and safety revenue under this subdivision, for years 
  9.4   before the current fiscal year to which the levy is 
  9.5   attributable, plus (c) the amount of other federal, state, or 
  9.6   local receipts for the district's hazardous substance or health 
  9.7   and safety programs for fiscal year 1985 through the current 
  9.8   fiscal year to which the levy is attributable. 
  9.9      Sec. 15.  Minnesota Statutes 2000, section 123B.57, 
  9.10  subdivision 5, is amended to read: 
  9.11     Subd. 5.  [HEALTH AND SAFETY AID.] A district's health and 
  9.12  safety revenue is provided entirely through state aid is the 
  9.13  difference between its health and safety revenue and its health 
  9.14  and safety levy.  If a district does not levy the entire amount 
  9.15  permitted, health and safety aid must be reduced in proportion 
  9.16  to the actual amount levied.  Health and safety aid may not be 
  9.17  reduced as a result of reducing a district's health and safety 
  9.18  levy according to section 123B.79.  
  9.19     Sec. 16.  Minnesota Statutes 2000, section 123B.59, 
  9.20  subdivision 1, is amended to read: 
  9.21     Subdivision 1.  [TO QUALIFY.] An independent or special 
  9.22  school district qualifies to participate in the alternative 
  9.23  facilities bonding and levy program if the district has: 
  9.24     (1) more than 66 students per grade; 
  9.25     (2) over 1,850,000 square feet of space; 
  9.26     (3) average age of building space is 15 years or older; 
  9.27     (4) insufficient funds from projected health and safety 
  9.28  revenue and capital facilities revenue to meet the requirements 
  9.29  for deferred maintenance, to make accessibility improvements, or 
  9.30  to make fire, safety, or health repairs; and 
  9.31     (5) a ten-year facility plan approved by the commissioner 
  9.32  according to subdivision 2. 
  9.33     Sec. 17.  Minnesota Statutes 2000, section 123B.59, 
  9.34  subdivision 2, is amended to read: 
  9.35     Subd. 2.  [TEN-YEAR PLAN.] (a) A qualifying district must 
  9.36  have a ten-year facility plan approved by the commissioner prior 
 10.1   to January 1, 2001, that includes an inventory of projects and 
 10.2   costs that would be eligible for: 
 10.3      (1) health and safety revenue; 
 10.4      (2) disabled access levy; and 
 10.5      (3) deferred capital expenditures and maintenance projects 
 10.6   necessary to prevent further erosion of facilities. 
 10.7      (b) The school district must: 
 10.8      (1) annually update the plan but no projects may be added 
 10.9   to the plan after January 1, 2001; 
 10.10     (2) biennially submit a facility maintenance plan; and 
 10.11     (3) indicate whether or not the district will issue bonds 
 10.12  to finance the plan or levy for the costs. 
 10.13     Sec. 18.  Minnesota Statutes 2000, section 123B.59, 
 10.14  subdivision 4, is amended to read: 
 10.15     Subd. 4.  [LEVY PROHIBITED FOR CAPITAL PROJECTS LIMITS ON 
 10.16  PARTICIPATION.] A district that participates in the alternative 
 10.17  facilities bonding and levy program is not eligible to levy and 
 10.18  cannot receive aid under sections 123B.57 and 123B.58 for any 
 10.19  capital projects funded under this section.  A district may levy 
 10.20  and receive aid for health and safety environmental management 
 10.21  costs and health and safety regulatory, hazard assessment, 
 10.22  record keeping, and maintenance programs as defined in section 
 10.23  123A.443, subdivision 2, and approved by the commissioner. 
 10.24     Sec. 19.  Minnesota Statutes 2000, section 123B.59, 
 10.25  subdivision 6, is amended to read: 
 10.26     Subd. 6.  [ALTERNATIVE FACILITIES AID.] A district's 
 10.27  alternative facilities aid is the amount equal to the district's 
 10.28  annual debt service costs, provided that the amount does not 
 10.29  exceed the amount certified to be levied for those purposes for 
 10.30  taxes payable in 1997, or for a district that made a levy under 
 10.31  subdivision 5, paragraph (b), the lesser of the district's 
 10.32  annual levy amount, or one-sixth of the amount of levy that it 
 10.33  certified for that purpose for taxes payable in 1998 approved 
 10.34  alternative facilities revenue. 
 10.35     Sec. 20.  Minnesota Statutes 2000, section 123B.59, 
 10.36  subdivision 7, is amended to read: 
 11.1      Subd. 7.  [ALTERNATIVE FACILITIES APPROPRIATION.] (a) An 
 11.2   amount not to exceed $19,700,000 for fiscal year 2000 and 
 11.3   $20,000,000 $40,000,000 for fiscal year 2001 and each year 
 11.4   thereafter is appropriated from the general fund to the 
 11.5   commissioner of children, families, and learning for payment of 
 11.6   alternative facilities aid under subdivision 6.  
 11.7      (b) The appropriation in paragraph (a) must be reduced by 
 11.8   the amount of any money specifically appropriated for the same 
 11.9   purpose in any year from any state fund. 
 11.10     Sec. 21.  Minnesota Statutes 2000, section 123B.61, is 
 11.11  amended to read: 
 11.12     123B.61 [PURCHASE OF CERTAIN EQUIPMENT.] 
 11.13     The board of a district may issue general obligation 
 11.14  certificates of indebtedness or capital notes subject to the 
 11.15  district debt limits to:  (a) purchase vehicles, computers, 
 11.16  telephone systems, cable equipment, photocopy and office 
 11.17  equipment, technological equipment for instruction, and other 
 11.18  capital equipment having an expected useful life at least as 
 11.19  long as the terms of the certificates or notes; (b) purchase 
 11.20  computer hardware and software, without regard to its expected 
 11.21  useful life, whether bundled with machinery or equipment or 
 11.22  unbundled, together with application development services and 
 11.23  training related to the use of the computer; and (c) prepay 
 11.24  special assessments.  The certificates or notes must be payable 
 11.25  in not more than five years and must be issued on the terms and 
 11.26  in the manner determined by the board, except that certificates 
 11.27  or notes issued to prepay special assessments must be payable in 
 11.28  not more than 20 years.  The certificates or notes may be issued 
 11.29  by resolution and without the requirement for an election.  The 
 11.30  certificates or notes are general obligation bonds for purposes 
 11.31  of section 126C.55.  A tax levy must be made for the payment of 
 11.32  the principal and interest on the certificates or notes, in 
 11.33  accordance with section 475.61, as in the case of bonds.  The 
 11.34  sum of the tax levies under this section and section 123B.62 for 
 11.35  each year must not exceed the amount of the district's total 
 11.36  operating capital revenue for the year the initial debt service 
 12.1   levies are certified.  The district's general education levy for 
 12.2   each year must be reduced by the sum of (1) the amount of the 
 12.3   tax levies for debt service certified for each year for payment 
 12.4   of the principal and interest on the certificates or notes as 
 12.5   required by section 475.61, and (2) any excess amount in the 
 12.6   debt redemption fund used to retire certificates or notes issued 
 12.7   after April 1, 1997, other than amounts used to pay capitalized 
 12.8   interest.  A district using an excess amount in the debt 
 12.9   redemption fund to retire the certificates or notes shall report 
 12.10  the amount used for this purpose to the commissioner by July 15 
 12.11  of the following fiscal year.  A district having an outstanding 
 12.12  capital loan under section 126C.69 or an outstanding debt 
 12.13  service loan under section 126C.68 must not use an excess amount 
 12.14  in the debt redemption fund to retire the certificates or notes. 
 12.15  The district must annually transfer the amount necessary to 
 12.16  repay these certificates or notes from its unreserved general 
 12.17  fund to a reserved account for this purpose. 
 12.18     Sec. 22.  Minnesota Statutes 2000, section 123B.62, is 
 12.19  amended to read: 
 12.20     123B.62 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 
 12.21     (a) In addition to other bonding authority, with approval 
 12.22  of the commissioner, a district may issue general obligation 
 12.23  bonds for certain capital projects under this section.  The 
 12.24  bonds must be used only to make capital improvements including: 
 12.25     (1) under section 126C.10, subdivision 14, total operating 
 12.26  capital revenue uses specified in clauses (4), (6), (7), (8), 
 12.27  (9), and (10); 
 12.28     (2) the cost of energy modifications; 
 12.29     (3) improving handicap accessibility to school buildings; 
 12.30  and 
 12.31     (4) bringing school buildings into compliance with life and 
 12.32  safety codes and fire codes.  
 12.33     (b) Before a district issues bonds under this subdivision, 
 12.34  it must publish notice of the intended projects, the amount of 
 12.35  the bond issue, and the total amount of district indebtedness.  
 12.36     (c) A bond issue tentatively authorized by the board under 
 13.1   this subdivision becomes finally authorized unless a petition 
 13.2   signed by more than 15 percent of the registered voters of the 
 13.3   district is filed with the school board within 30 days of the 
 13.4   board's adoption of a resolution stating the board's intention 
 13.5   to issue bonds.  The percentage is to be determined with 
 13.6   reference to the number of registered voters in the district on 
 13.7   the last day before the petition is filed with the board.  The 
 13.8   petition must call for a referendum on the question of whether 
 13.9   to issue the bonds for the projects under this section.  The 
 13.10  approval of 50 percent plus one of those voting on the question 
 13.11  is required to pass a referendum authorized by this section. 
 13.12     (d) The bonds must be paid off within ten years of 
 13.13  issuance.  The bonds must be issued in compliance with chapter 
 13.14  475, except as otherwise provided in this section.  A tax levy 
 13.15  must be made for the payment of principal and interest on the 
 13.16  bonds in accordance with section 475.61.  The sum of the tax 
 13.17  levies under this section for each year must not exceed the 
 13.18  amount of the district's total operating capital revenue for the 
 13.19  year the initial debt service levies are certified.  The 
 13.20  district's general education levy for each year must be reduced 
 13.21  by the sum of (1) the amount of the tax levies for debt service 
 13.22  certified for each year for payment of the principal and 
 13.23  interest on the bonds, and (2) any excess amount in the debt 
 13.24  redemption fund used to retire bonds issued after April 1, 1997, 
 13.25  other than amounts used to pay capitalized interest.  A district 
 13.26  using an excess amount in the debt redemption fund to retire the 
 13.27  bonds shall report the amount used for this purpose to the 
 13.28  commissioner by July 15 of the following fiscal year.  A 
 13.29  district having an outstanding capital loan under section 
 13.30  126C.69 or an outstanding debt service loan under section 
 13.31  126C.68 must not use an excess amount in the debt redemption 
 13.32  fund to retire the bonds.  The district must annually transfer 
 13.33  the amount necessary to repay these bonds from its unreserved 
 13.34  general fund to a reserved account for this purpose. 
 13.35     (e) Notwithstanding paragraph (d), bonds issued by a 
 13.36  district within the first five years following voter approval of 
 14.1   a combination according to section 123A.37, subdivision 2, must 
 14.2   be paid off within 20 years of issuance.  All the other 
 14.3   provisions and limitation of paragraph (d) apply. 
 14.4      Sec. 23.  Minnesota Statutes 2000, section 124D.135, 
 14.5   subdivision 1, is amended to read: 
 14.6      Subdivision 1.  [REVENUE.] The revenue for early childhood 
 14.7   family education programs for a school district equals $113.50 
 14.8   for fiscal years 2000 and 2001 and $120 for 2002 and later 
 14.9   fiscal years times the greater of: 
 14.10     (1) 150; or 
 14.11     (2) the number of people under five years of age residing 
 14.12  in the district on October 1 of the previous school year. 
 14.13     Early childhood family education revenue is provided 
 14.14  entirely through state aid. 
 14.15     Sec. 24.  Minnesota Statutes 2000, section 124D.135, 
 14.16  subdivision 6, is amended to read: 
 14.17     Subd. 6.  [HOME VISITING LEVY AID.] A district that enters 
 14.18  into a collaborative agreement to provide education services and 
 14.19  social services to families with young children may levy is 
 14.20  eligible for state aid in an amount equal to $1.60 times the 
 14.21  number of people under five years of age residing in the 
 14.22  district on September 1 of the last school year.  Levy revenue 
 14.23  under this subdivision must not be included as revenue under 
 14.24  subdivision 1.  The revenue must be used for home visiting 
 14.25  programs under section 124D.13, subdivision 4.  
 14.26     Sec. 25.  Minnesota Statutes 2000, section 124D.20, 
 14.27  subdivision 1, is amended to read: 
 14.28     Subdivision 1.  [TOTAL COMMUNITY EDUCATION REVENUE.] 
 14.29  Community education revenue equals the sum of a district's 
 14.30  general community education revenue and youth service program 
 14.31  revenue.  Community education revenue is provided entirely 
 14.32  through state aid. 
 14.33     Sec. 26.  Minnesota Statutes 2000, section 124D.22, 
 14.34  subdivision 2, is amended to read: 
 14.35     Subd. 2.  [SCHOOL-AGE CARE REVENUE.] The school-age care 
 14.36  revenue for an eligible district equals the approved additional 
 15.1   cost of providing services to children with disabilities or 
 15.2   children experiencing family or related problems of a temporary 
 15.3   nature who participate in the school-age care program.  Extended 
 15.4   revenue is provided entirely through state aid.  
 15.5      Sec. 27.  Minnesota Statutes 2000, section 124D.56, 
 15.6   subdivision 1, is amended to read: 
 15.7      Subdivision 1.  [REVENUE AMOUNT.] A district that is 
 15.8   eligible according to section 124D.20, subdivision 2, may 
 15.9   receive revenue for a program for adults with disabilities.  
 15.10  Revenue for the program for adults with disabilities for a 
 15.11  district or a group of districts equals the lesser of:  
 15.12     (1) the actual expenditures for approved programs and 
 15.13  budgets; or 
 15.14     (2) $60,000.  
 15.15     Revenue for the adults with disabilities program is 
 15.16  provided entirely through state aid.  
 15.17     Sec. 28.  Minnesota Statutes 2000, section 124D.86, 
 15.18  subdivision 5, is amended to read: 
 15.19     Subd. 5.  [INTEGRATION AID.] A district's integration aid 
 15.20  equals 67 percent for fiscal year 2000 and 78 100 percent for 
 15.21  fiscal year 2001 2003 and thereafter of the district's 
 15.22  integration revenue as defined in subdivision 3. 
 15.23     Sec. 29.  Minnesota Statutes 2000, section 126C.13, 
 15.24  subdivision 1, is amended to read: 
 15.25     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 15.26  commissioner must establish the general education tax rate by 
 15.27  July 1 of each year for levies payable in the following year.  
 15.28  The general education tax capacity rate must be a rate, rounded 
 15.29  up to the nearest hundredth of a percent, that, when applied to 
 15.30  the adjusted net tax capacity school tax base for all districts, 
 15.31  raises the amount specified in this subdivision.  The general 
 15.32  education tax rate must be the rate that raises 
 15.33  $1,330,000,000 $590,000,000 for fiscal year 2001 2003, and later 
 15.34  fiscal years.  The general education tax rate may not be changed 
 15.35  due to changes or corrections made to a district's adjusted net 
 15.36  tax capacity school tax base after the tax rate has been 
 16.1   established.  
 16.2      Sec. 30.  Minnesota Statutes 2000, section 126C.13, 
 16.3   subdivision 2, is amended to read: 
 16.4      Subd. 2.  [GENERAL EDUCATION LEVY.] To obtain general 
 16.5   education revenue, excluding transition revenue and supplemental 
 16.6   revenue, a district may levy an amount not to exceed the general 
 16.7   education tax rate times the adjusted net tax capacity school 
 16.8   tax base of the district for the preceding year.  If the amount 
 16.9   of the general education levy would exceed the general education 
 16.10  revenue, excluding transition revenue and supplemental revenue, 
 16.11  the general education levy must be determined according to 
 16.12  subdivision 3.  
 16.13     Sec. 31.  Minnesota Statutes 2000, section 126C.13, 
 16.14  subdivision 3, is amended to read: 
 16.15     Subd. 3.  [GENERAL EDUCATION LEVY; DISTRICTS OFF THE 
 16.16  FORMULA.] If the amount of the general education levy for a 
 16.17  district exceeds the district's general education revenue, 
 16.18  excluding transition revenue and supplemental revenue, the 
 16.19  amount of the general education levy must be limited to the 
 16.20  following: 
 16.21     (1) the district's general education revenue, excluding 
 16.22  transition revenue and supplemental revenue; plus 
 16.23     (2) the amount of the aid reduction for the same school 
 16.24  year according to section 126C.14; minus 
 16.25     (3) payments made for the same school year according to 
 16.26  section 126C.21, subdivision 3. 
 16.27     For purposes of statutory cross-reference, a levy made 
 16.28  according to this subdivision shall be construed to be the levy 
 16.29  made according to subdivision 2. 
 16.30     Sec. 32.  Minnesota Statutes 2000, section 126C.13, 
 16.31  subdivision 4, is amended to read: 
 16.32     Subd. 4.  [GENERAL EDUCATION AID.] A district's general 
 16.33  education aid is the sum of the following amounts:  
 16.34     (1) the product of (i) the difference between the general 
 16.35  education revenue, excluding transition revenue and supplemental 
 16.36  revenue, and the general education levy, times (ii) the ratio of 
 17.1   the actual amount levied to the permitted levy; 
 17.2      (2) transition aid according to section 126C.10, 
 17.3   subdivision 22; 
 17.4      (3) supplemental aid according to section 127A.49; 
 17.5      (4) shared time aid according to section 126C.01, 
 17.6   subdivision 7; and 
 17.7      (5) (3) referendum aid according to section 126C.17. 
 17.8      Sec. 33.  Minnesota Statutes 2000, section 126C.14, is 
 17.9   amended to read: 
 17.10     126C.14 [GENERAL EDUCATION LEVY EQUITY.] 
 17.11     If a district's general education levy is determined 
 17.12  according to section 126C.13, subdivision 3, an amount must be 
 17.13  deducted from state aid authorized in this chapter and chapters 
 17.14  120B, 122A, 123A, 123B, 124D, 125A, and 127A, receivable for the 
 17.15  same school year, and from other state payments receivable for 
 17.16  the same school year authorized in chapter 273.  The aid in 
 17.17  section 124D.111 must not be reduced. 
 17.18     The amount of the deduction equals the difference between: 
 17.19     (1) the general education tax rate, according to section 
 17.20  126C.13, times the district's adjusted net tax capacity general 
 17.21  education tax base used to determine the general education aid 
 17.22  for the same school year; and 
 17.23     (2) the district's general education revenue, excluding 
 17.24  transition revenue and supplemental revenue, for the same school 
 17.25  year, according to section 126C.10. 
 17.26     Sec. 34.  Minnesota Statutes 2000, section 126C.41, 
 17.27  subdivision 1, is amended to read: 
 17.28     Subdivision 1.  [HEALTH INSURANCE.] (a) A district may levy 
 17.29  is eligible for state aid equal to the amount necessary to make 
 17.30  employer contributions for insurance for retired employees under 
 17.31  this subdivision.  
 17.32     (b) The school board of a joint vocational technical 
 17.33  district formed under the provisions formerly codified as 
 17.34  sections 136C.60 to 136C.69 and the school board of a school 
 17.35  district may provide employer-paid hospital, medical, and dental 
 17.36  benefits to a person who: 
 18.1      (1) is eligible for employer-paid insurance under 
 18.2   collective bargaining agreements or personnel plans in effect on 
 18.3   June 30, 1992; 
 18.4      (2) has at least 25 years of service credit in the public 
 18.5   pension plan of which the person is a member on the day before 
 18.6   retirement or, in the case of a teacher, has a total of at least 
 18.7   25 years of service credit in the teachers retirement 
 18.8   association, a first-class city teacher retirement fund, or any 
 18.9   combination of these; 
 18.10     (3) upon retirement is immediately eligible for a 
 18.11  retirement annuity; 
 18.12     (4) is at least 55 and not yet 65 years of age; and 
 18.13     (5) retires on or after May 15, 1992, and before July 21, 
 18.14  1992. 
 18.15     A school board paying insurance under this subdivision may 
 18.16  not exclude any eligible employees. 
 18.17     (c) An employee who is eligible both for the health 
 18.18  insurance benefit under this subdivision and for an early 
 18.19  retirement incentive under a collective bargaining agreement or 
 18.20  personnel plan established by the employer must select either 
 18.21  the early retirement incentive provided under the collective 
 18.22  bargaining agreement personnel plan or the incentive provided 
 18.23  under this subdivision, but may not receive both.  For purposes 
 18.24  of this subdivision, a person retires when the person terminates 
 18.25  active employment and applies for retirement benefits.  The 
 18.26  retired employee is eligible for single and dependent coverages 
 18.27  and employer payments to which the person was entitled 
 18.28  immediately before retirement, subject to any changes in 
 18.29  coverage and employer and employee payments through collective 
 18.30  bargaining or personnel plans, for employees in positions 
 18.31  equivalent to the position from which the employee retired.  The 
 18.32  retired employee is not eligible for employer-paid life 
 18.33  insurance.  Eligibility ceases when the retired employee attains 
 18.34  the age of 65, or when the employee chooses not to receive the 
 18.35  retirement benefits for which the employee has applied, or when 
 18.36  the employee is eligible for employer-paid health insurance from 
 19.1   a new employer.  Coverages must be coordinated with relevant 
 19.2   health insurance benefits provided through the federally 
 19.3   sponsored Medicare program.  
 19.4      (d) Unilateral implementation of this section by a public 
 19.5   employer is not an unfair labor practice for purposes of chapter 
 19.6   179A.  The authority provided in this subdivision for an 
 19.7   employer to pay health insurance costs for certain retired 
 19.8   employees is not subject to the limits in section 179A.20, 
 19.9   subdivision 2a. 
 19.10     (e) If a school district levies receives state aid 
 19.11  according to this subdivision, it may not also levy receive 
 19.12  state aid according to section 123A.73, subdivision 12, for 
 19.13  eligible employees. 
 19.14     Sec. 35.  Minnesota Statutes 2000, section 126C.41, 
 19.15  subdivision 3, is amended to read: 
 19.16     Subd. 3.  [RETIREMENT LEVIES AID.] (1) In addition to the 
 19.17  excess levy authorized in 1976 any district within a city of the 
 19.18  first class which was authorized in 1975 to make a retirement 
 19.19  levy under Minnesota Statutes 1974, section 275.127 and chapter 
 19.20  422A may levy is eligible for state aid in an amount per pupil 
 19.21  unit which is equal to the amount levied in 1975 payable 1976, 
 19.22  under Minnesota Statutes 1974, section 275.127 and chapter 422A, 
 19.23  divided by the number of pupil units in the district in 
 19.24  1976-1977. 
 19.25     (2) In 1979 and each year thereafter, any district which 
 19.26  qualified in 1976 for an extra levy under paragraph (1) shall be 
 19.27  allowed to levy is eligible for state aid in the same amount as 
 19.28  levied for retirement in 1978 under this clause reduced each 
 19.29  year by ten percent of the difference between the amount levied 
 19.30  for retirement in 1971 under Minnesota Statutes 1971, sections 
 19.31  275.127 and 422.01 to 422.54 and the amount levied for 
 19.32  retirement in 1975 under Minnesota Statutes 1974, section 
 19.33  275.127 and chapter 422A. 
 19.34     (3) In 1991 and each year thereafter, a district to which 
 19.35  this subdivision applies may levy is eligible for state aid in 
 19.36  an additional amount required for contributions to the 
 20.1   Minneapolis employees retirement fund as a result of the maximum 
 20.2   dollar amount limitation on state contributions to the fund 
 20.3   imposed under section 422A.101, subdivision 3.  The 
 20.4   additional levy state aid must not exceed the most recent amount 
 20.5   certified by the board of the Minneapolis employees retirement 
 20.6   fund as the district's share of the contribution requirement in 
 20.7   excess of the maximum state contribution under section 422A.101, 
 20.8   subdivision 3.  
 20.9      (4) For taxes payable in 1994 and thereafter, special 
 20.10  school district No. 1, Minneapolis, and independent school 
 20.11  district No. 625, St. Paul, may levy for are eligible for state 
 20.12  aid equal to the increase in the employer retirement fund 
 20.13  contributions, under Laws 1992, chapter 598, article 5, section 
 20.14  1.  
 20.15     (5) If the employer retirement fund contributions under 
 20.16  section 354A.12, subdivision 2a, are increased for fiscal year 
 20.17  1994 or later fiscal years, special school district No. 1, 
 20.18  Minneapolis, and independent school district No. 625, St. Paul, 
 20.19  may levy in payable 1994 or later are eligible for state aid in 
 20.20  an amount equal to the amount derived by applying the net 
 20.21  increase in the employer retirement fund contribution rate of 
 20.22  the respective teacher retirement fund association between 
 20.23  fiscal year 1993 and the fiscal year beginning in the year after 
 20.24  the levy is certified to the total covered payroll of the 
 20.25  applicable teacher retirement fund association.  If an 
 20.26  applicable school district levies receives aid under this 
 20.27  paragraph, they may not levy the district is not eligible for 
 20.28  state aid under paragraph (4). 
 20.29     (6) In addition to the levy state aid authorized under 
 20.30  paragraph (5), special school district No. 1, Minneapolis, may 
 20.31  also levy payable in 1997 or later is also eligible for state 
 20.32  aid in an amount equal to the contributions under section 
 20.33  423A.02, subdivision 3, and may also levy in payable 1994 or 
 20.34  later receive state aid in an amount equal to the state aid 
 20.35  contribution under section 354A.12, subdivision 3b.  Independent 
 20.36  school district No. 625, St. Paul, may levy payable in 1997 or 
 21.1   later is eligible for additional state aid in an amount equal to 
 21.2   the supplemental contributions under section 423A.02, 
 21.3   subdivision 3.  
 21.4      Sec. 36.  Minnesota Statutes 2000, section 126C.41, 
 21.5   subdivision 4, is amended to read: 
 21.6      Subd. 4.  [MINNEAPOLIS HEALTH INSURANCE SUBSIDY.] Each year 
 21.7   special school district No. 1, Minneapolis, may make an 
 21.8   additional levy is eligible for state aid in an amount not to 
 21.9   exceed the amount raised by a net tax rate of .10 percent times 
 21.10  the adjusted net tax capacity for taxes payable in 1991 and 
 21.11  thereafter of the property in the district for the preceding 
 21.12  year.  The proceeds state aid may be used only to subsidize 
 21.13  health insurance costs for eligible teachers as provided in this 
 21.14  section.  
 21.15     "Eligible teacher" means a retired teacher who was a basic 
 21.16  member of the Minneapolis teachers retirement fund association, 
 21.17  who retired before May 1, 1974, or who had 20 or more years of 
 21.18  basic member service in the Minneapolis teacher retirement fund 
 21.19  association and retired before June 30, 1983, and who is not 
 21.20  eligible to receive the hospital insurance benefits of the 
 21.21  federal Medicare program of the Social Security Act without 
 21.22  payment of a monthly premium.  The district must notify eligible 
 21.23  teachers that a subsidy is available.  To obtain a subsidy, an 
 21.24  eligible teacher must submit to the school district a copy of 
 21.25  receipts for health insurance premiums paid.  The district must 
 21.26  disburse the health insurance premium subsidy to each eligible 
 21.27  teacher according to a schedule determined by the district, but 
 21.28  at least annually.  An eligible teacher may receive a subsidy up 
 21.29  to an amount equal to the lesser of 90 percent of the cost of 
 21.30  the eligible teacher's health insurance or up to 90 percent of 
 21.31  the cost of the number two qualified plan of health coverage for 
 21.32  individual policies made available by the Minnesota 
 21.33  comprehensive health association under chapter 62E.  
 21.34     If funds remaining from the previous year's health 
 21.35  insurance subsidy levy revenue, minus the previous year's 
 21.36  required subsidy amount, are sufficient to pay the estimated 
 22.1   current year subsidy, the levy state aid must be discontinued 
 22.2   until the remaining funds are estimated by the school board to 
 22.3   be insufficient to pay the subsidy. 
 22.4      This subdivision does not extend benefits to teachers who 
 22.5   retire after June 30, 1983, and does not create a contractual 
 22.6   right or claim for altering the benefits in this subdivision.  
 22.7   This subdivision does not restrict the district's right to 
 22.8   modify or terminate coverage under this subdivision. 
 22.9      Sec. 37.  Minnesota Statutes 2000, section 126C.42, 
 22.10  subdivision 1, is amended to read: 
 22.11     Subdivision 1.  [1977 STATUTORY OPERATING DEBT.] (a) In 
 22.12  each year in which so required by this subdivision, a district 
 22.13  must make an additional levy is eligible for state aid to 
 22.14  eliminate its statutory operating debt, determined as of June 
 22.15  30, 1977, and certified and adjusted by the commissioner.  This 
 22.16  levy for years prior to taxes payable in 2001 and the subsequent 
 22.17  state aid shall not be made in received for more than 30 
 22.18  successive years and each year before it is made received, it 
 22.19  must be approved by the commissioner and the approval shall 
 22.20  specify its amount.  This levy state aid shall be an amount 
 22.21  which is equal to the amount raised by a levy of a net tax rate 
 22.22  of 1.98 percent times the adjusted net tax capacity of the 
 22.23  district for the preceding year for taxes payable in 2000 and 
 22.24  thereafter; provided that in the last year in which the district 
 22.25  is required to make this levy, it must levy an amount not to 
 22.26  exceed the amount raised by a levy of a net tax rate of 1.98 
 22.27  percent times the adjusted net tax capacity of the district for 
 22.28  the preceding year for taxes payable in 2000 and thereafter.  
 22.29  When the sum of the cumulative levies made pursuant to this 
 22.30  subdivision, state aid received under this subdivision, and 
 22.31  transfers made according to section 123B.79, subdivision 6, 
 22.32  equals an amount equal to the statutory operating debt of the 
 22.33  district, the levy state aid shall be discontinued. 
 22.34     (b) The district must establish a special account in the 
 22.35  general fund which shall be designated "appropriated fund 
 22.36  balance reserve account for purposes of reducing statutory 
 23.1   operating debt" on its books and records.  This account shall 
 23.2   reflect the levy and state aid authorized pursuant to this 
 23.3   subdivision.  The proceeds of this levy and the state aid must 
 23.4   be used only for cash flow requirements and must not be used to 
 23.5   supplement district revenues or income for the purposes of 
 23.6   increasing the district's expenditures or budgets. 
 23.7      (c) Any district which is required to levy pursuant to that 
 23.8   receives state aid under this subdivision must certify the 
 23.9   maximum levy allowable under section 126C.13, subdivision 2, in 
 23.10  that same year. 
 23.11     (d) Each district shall make permanent fund balance 
 23.12  transfers so that the total statutory operating debt of the 
 23.13  district is reflected in the general fund as of June 30, 1977. 
 23.14     Sec. 38.  Minnesota Statutes 2000, section 126C.42, 
 23.15  subdivision 2, is amended to read: 
 23.16     Subd. 2.  [1983 OPERATING DEBT.] (1) Each year, a 
 23.17  district may make an additional levy is eligible for state aid 
 23.18  under this subdivision to eliminate a deficit in the net 
 23.19  unappropriated operating funds of the district, determined as of 
 23.20  June 30, 1983, and certified and adjusted by the commissioner.  
 23.21  This levy may in each year be an amount not to exceed state aid 
 23.22  equals the amount raised by a levy of a net tax rate of 2.2 
 23.23  percent times the adjusted net tax capacity for taxes payable in 
 23.24  2000 and thereafter of the district for the preceding year as 
 23.25  determined by the commissioner.  However, the total amount of 
 23.26  this levy for all years it is made and the state aid received 
 23.27  under this subdivision must not exceed the lesser of (a) the 
 23.28  amount of the deficit in the net unappropriated operating funds 
 23.29  of the district as of June 30, 1983, or (b) the amount of the 
 23.30  aid reduction, according to Laws 1981, Third Special Session 
 23.31  chapter 2, article 2, section 2, but excluding clauses (l), (m), 
 23.32  (n), (o), and (p), and Laws 1982, Third Special Session chapter 
 23.33  1, article 3, section 6, to the district in fiscal year 1983.  
 23.34  When the cumulative levies made and state aid received pursuant 
 23.35  to this subdivision equal the total amount permitted by this 
 23.36  subdivision, the levy state aid must be discontinued.  
 24.1      (2) The proceeds of this levy state aid must be used only 
 24.2   for cash flow requirements and must not be used to supplement 
 24.3   district revenues or income for the purposes of increasing the 
 24.4   district's expenditures or budgets.  
 24.5      (3) A district that levies pursuant to receives state aid 
 24.6   under this subdivision must certify the maximum levy allowable 
 24.7   under section 126C.13, subdivision 2, in that same year. 
 24.8      Sec. 39.  Minnesota Statutes 2000, section 126C.42, 
 24.9   subdivision 3, is amended to read: 
 24.10     Subd. 3.  [1985 OPERATING DEBT.] (1) Each year, a 
 24.11  district may levy is eligible for state aid under this 
 24.12  subdivision to eliminate a deficit in the net unappropriated 
 24.13  balance in the general fund of the district, determined as of 
 24.14  June 30, 1985, and certified and adjusted by the commissioner.  
 24.15  Each year this levy may be an amount not to exceed state aid 
 24.16  equals the amount raised by a levy of a net tax rate of 1.85 
 24.17  percent times the adjusted net tax capacity for taxes payable in 
 24.18  1991 and thereafter of the district for the preceding year.  
 24.19  However, the total amount of this levy made and state aid 
 24.20  received under this subdivision for all years it is made must 
 24.21  not exceed the amount of the deficit in the net unappropriated 
 24.22  balance in the general fund of the district as of June 30, 
 24.23  1985.  When the cumulative levies made pursuant to this 
 24.24  subdivision and the state aid received under this subdivision 
 24.25  equal the total amount permitted by this subdivision, the levy 
 24.26  state aid shall be discontinued.  
 24.27     (2) A district, if eligible, may levy receive revenue under 
 24.28  this subdivision or subdivision 2 but not both. 
 24.29     (3) The proceeds of this levy and state aid must be used 
 24.30  only for cash flow requirements and must not be used to 
 24.31  supplement district revenues or income for the purposes of 
 24.32  increasing the district's expenditures or budgets.  
 24.33     (4) A district that levies receives state aid pursuant to 
 24.34  this subdivision must certify the maximum levy allowable under 
 24.35  section 126C.13, subdivision 2, in that same year. 
 24.36     Sec. 40.  Minnesota Statutes 2000, section 126C.42, 
 25.1   subdivision 4, is amended to read: 
 25.2      Subd. 4.  [1992 OPERATING DEBT.] (a) For taxes payable for 
 25.3   calendar year 2003 fiscal year 2004 and earlier, a district that 
 25.4   has filed a plan pursuant to section 123B.83, subdivision 4, may 
 25.5   levy receive state aid, with the approval of the commissioner, 
 25.6   to eliminate a deficit in the net unappropriated balance in the 
 25.7   operating funds of the district, determined as of June 30, 1992, 
 25.8   and certified and adjusted by the commissioner.  Each year 
 25.9   this levy may state aid must be an amount not to exceed the 
 25.10  lesser of: 
 25.11     (1) an amount raised by a levy of a net tax rate of one 
 25.12  percent times the adjusted net tax capacity of the school 
 25.13  district; or 
 25.14     (2) $100,000. 
 25.15  This amount must be reduced by referendum revenue authorized 
 25.16  under section 126C.17 pursuant to the plan filed under section 
 25.17  123B.83.  However, the total amount of this levy for all years 
 25.18  it is made and the state aid received under this subdivision 
 25.19  must not exceed the amount of the deficit in the net 
 25.20  unappropriated balance in the operating funds of the district as 
 25.21  of June 30, 1992.  When the cumulative levies made pursuant to 
 25.22  this subdivision and state aid received under this subdivision 
 25.23  equal the total amount permitted by this subdivision, the levy 
 25.24  state aid must be discontinued.  
 25.25     (b) A district, if eligible, may levy receive state aid 
 25.26  under this subdivision or subdivision 2 or 3, or under section 
 25.27  123A.73, subdivision 9, or Laws 1992, chapter 499, article 7, 
 25.28  sections 16 or 17, but not under more than one. 
 25.29     (c) The proceeds of this levy and state aid must be used 
 25.30  only for cash flow requirements and must not be used to 
 25.31  supplement district revenues or income for the purposes of 
 25.32  increasing the district's expenditures or budgets.  
 25.33     (d) Any district that levies receives state aid pursuant to 
 25.34  this subdivision must certify the maximum levy allowable under 
 25.35  section 126C.13, subdivision 2, in that same year. 
 25.36     Sec. 41.  Minnesota Statutes 2000, section 126C.43, 
 26.1   subdivision 1, is amended to read: 
 26.2      Subdivision 1.  [ALLOCATION OF ASSETS AND LIABILITIES.] 
 26.3   Upon approval of the commissioner, a district may levy is 
 26.4   eligible for state aid in the amount authorized for liabilities 
 26.5   of dissolved districts pursuant to section 123A.67. 
 26.6      Sec. 42.  Minnesota Statutes 2000, section 126C.43, 
 26.7   subdivision 2, is amended to read: 
 26.8      Subd. 2.  [PAYMENT TO UNEMPLOYMENT INSURANCE PROGRAM TRUST 
 26.9   FUND BY STATE AND POLITICAL SUBDIVISIONS.] Upon approval of the 
 26.10  commissioner, a district may levy is eligible for state aid 
 26.11  equal to the amounts necessary to pay the district's obligations 
 26.12  under section 268.052, subdivision 1, and the amounts necessary 
 26.13  to pay for job placement services offered to employees who may 
 26.14  become eligible for benefits pursuant to section 268.085 for the 
 26.15  previous fiscal year the levy is certified. 
 26.16     Sec. 43.  Minnesota Statutes 2000, section 126C.43, 
 26.17  subdivision 3, is amended to read: 
 26.18     Subd. 3.  [TAX LEVY FOR UNPAID JUDGMENT.] Upon approval of 
 26.19  the commissioner, a district may levy is eligible for state aid 
 26.20  in the amounts necessary to pay the district's obligations under 
 26.21  section 126C.47. 
 26.22     Sec. 44.  Minnesota Statutes 2000, section 126C.43, 
 26.23  subdivision 4, is amended to read: 
 26.24     Subd. 4.  [LEVY LIMITATIONS OF REORGANIZED DISTRICTS 
 26.25  DISTRICT AID.] Upon approval of the commissioner, a district may 
 26.26  levy is eligible for state aid in the amounts authorized by 
 26.27  section 123A.73. 
 26.28     Sec. 45.  Minnesota Statutes 2000, section 126C.43, 
 26.29  subdivision 5, is amended to read: 
 26.30     Subd. 5.  [EXPENSES OF TRANSITION; DISSOLVED DISTRICT.] A 
 26.31  district may levy the amounts is eligible for state aid in the 
 26.32  amount necessary to pay the district's obligations under section 
 26.33  123A.76. 
 26.34     Sec. 46.  Minnesota Statutes 2000, section 126C.43, 
 26.35  subdivision 6, is amended to read: 
 26.36     Subd. 6.  [TEACHER SEVERANCE PAY.] Upon approval of the 
 27.1   commissioner, a district may levy is eligible for state aid for 
 27.2   severance pay required by sections 124D.05, subdivision 3, and 
 27.3   123A.30, subdivision 6. 
 27.4      Sec. 47.  Minnesota Statutes 2000, section 126C.44, is 
 27.5   amended to read: 
 27.6      126C.44 [CRIME-RELATED COSTS LEVY.] 
 27.7      Each district may make a levy on all taxable property 
 27.8   located within the district for the purposes specified in this 
 27.9   section.  The maximum amount which may be levied for all costs 
 27.10  under this section shall be A district is eligible for state aid 
 27.11  for crime-related costs equal to $11 multiplied by the 
 27.12  district's adjusted marginal cost pupil units for the school 
 27.13  year.  The proceeds of the levy state aid must be used for 
 27.14  directly funding the following purposes or for reimbursing the 
 27.15  cities and counties who contract with the district for the 
 27.16  following purposes:  (1) to pay the costs incurred for the 
 27.17  salaries, benefits, and transportation costs of peace officers 
 27.18  and sheriffs for liaison in services in the district's schools; 
 27.19  (2) to pay the costs for a drug abuse prevention program as 
 27.20  defined in section 609.101, subdivision 3, paragraph (e), in the 
 27.21  elementary schools; (3) to pay the costs for a gang resistance 
 27.22  education training curriculum in the district's schools; (4) to 
 27.23  pay the costs for security in the district's schools and on 
 27.24  school property; or (5) to pay the costs for other crime 
 27.25  prevention, drug abuse, student and staff safety, and violence 
 27.26  prevention measures taken by the school district.  The district 
 27.27  must initially attempt to contract for services to be provided 
 27.28  by peace officers or sheriffs with the police department of each 
 27.29  city or the sheriff's department of the county within the 
 27.30  district containing the school receiving the services.  If a 
 27.31  local police department or a county sheriff's department does 
 27.32  not wish to provide the necessary services, the district may 
 27.33  contract for these services with any other police or sheriff's 
 27.34  department located entirely or partially within the school 
 27.35  district's boundaries.  The levy authorized under this section 
 27.36  is not included in determining the school district's levy 
 28.1   limitations. 
 28.2      Sec. 48.  Minnesota Statutes 2000, section 126C.45, is 
 28.3   amended to read: 
 28.4      126C.45 [ICE ARENA LEVY.] 
 28.5      (a) Each year, upon approval of the commissioner, an 
 28.6   independent school district operating and maintaining an ice 
 28.7   arena, may levy for is eligible for state aid in an amount equal 
 28.8   to the net operational costs of the ice arena.  The levy may 
 28.9   state aid must not exceed the net actual costs of operation of 
 28.10  the arena for the previous year.  Net actual costs are defined 
 28.11  as operating costs less any operating revenues. 
 28.12     (b) Any district operating and maintaining an ice arena 
 28.13  must demonstrate to the satisfaction of the office of monitoring 
 28.14  in the department that the district will offer equal sports 
 28.15  opportunities for male and female students to use its ice arena, 
 28.16  particularly in areas of access to prime practice time, team 
 28.17  support, and providing junior varsity and younger level teams 
 28.18  for girls' ice sports and ice sports offerings. 
 28.19     Sec. 49.  [127A.485] [ADJUSTED SCHOOL TAX BASE.] 
 28.20     Subdivision 1.  [SCHOOL TAX BASE.] "School tax base" means 
 28.21  the net tax capacity of the taxable property of the district for 
 28.22  all class 3, 4, and 5 property defined under section 273.13. 
 28.23     Subd. 2.  [ADJUSTED SCHOOL TAX BASE.] A district's adjusted 
 28.24  school tax base equals its school tax base computed under 
 28.25  subdivision 1 divided by its sales ratio for those classes of 
 28.26  property computed under section 127A.48.  
 28.27     Subd. 3.  [NET TAX CAPACITY LEVIES.] For all school 
 28.28  district levies calculated under chapters 120A to 128D, except 
 28.29  for the debt service levy under sections 123B.53 and 123B.55, 
 28.30  school tax base and adjusted school tax base must be used 
 28.31  instead of net tax capacity and adjusted net tax capacity. 
 28.32     Sec. 50.  [OPERATING REFERENDUM REVENUE TASK FORCE.] 
 28.33     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A task force on 
 28.34  elementary and secondary education funding is established to 
 28.35  recommend replacement revenue for the funds now generated by the 
 28.36  operating referendum revenue authorized under Minnesota 
 29.1   Statutes, section 126C.17.  The task force must evaluate and 
 29.2   propose an alternative source of funding that is both flexible 
 29.3   and equitable. 
 29.4      Subd. 2.  [MEMBERSHIP.] The task force is composed of five 
 29.5   persons appointed by the governor, five persons appointed by the 
 29.6   speaker of the house of representatives, five persons appointed 
 29.7   by the subcommittee on committees of the senate committee on 
 29.8   rules and administration, and one representative from each of 
 29.9   the following organizations:  the Minnesota School Boards 
 29.10  Association; the Association of Metropolitan School Districts; 
 29.11  the Minnesota Rural Education Association; Schools for Equity in 
 29.12  Education; the Minnesota Association of School Administrators; 
 29.13  the Minnesota Association of School Business Officials; and 
 29.14  Education Minnesota. 
 29.15     Subd. 3.  [DUTIES.] The task force must examine Minnesota's 
 29.16  current referendum revenue and evaluate alternative forms of 
 29.17  discretionary revenue for Minnesota's elementary and secondary 
 29.18  education system.  The task force may utilize staff of the 
 29.19  department of children, families, and learning, as necessary. 
 29.20     Subd. 4.  [REPORT.] The task force must submit a report of 
 29.21  its findings and recommend the proposed alternative to the 
 29.22  education committees of the house and senate by December 15, 
 29.23  2002. 
 29.24     Sec. 51.  [REPEALER.] 
 29.25     Subdivision 1.  [REVENUE FOR FISCAL YEAR 2003.] Minnesota 
 29.26  Statutes 2000, sections 123B.57, subdivisions 4 and 7; 123B.59, 
 29.27  subdivision 5; 124D.135, subdivisions 3 and 4; 124D.20, 
 29.28  subdivisions 5, 6, and 7; 124D.56, subdivisions 2 and 3; 
 29.29  124D.86, subdivision 4; 126C.10, subdivisions 10, 11, 21, and 
 29.30  22, are repealed for revenue for fiscal years 2003 and later. 
 29.31     Subd. 2.  [TAXES PAYABLE IN 2002.] Minnesota Statutes 2000, 
 29.32  sections 273.1382; and 275.08, subdivision 1e, are repealed.  
 29.33     Sec. 52.  [EFFECTIVE DATE.] 
 29.34     Sections 1 to 49 are effective for revenue for fiscal years 
 29.35  2003 and later. 
 29.36                             ARTICLE 2 
 30.1                           SALES TAX REBATE 
 30.2      Section 1.  [STATEMENT OF PURPOSE.] 
 30.3      (a) The state of Minnesota derives revenues from a variety 
 30.4   of taxes, fees, and other sources, including the state sales tax.
 30.5      (b) It is fair and reasonable to refund the existing state 
 30.6   budget surplus in the form of a rebate of nonbusiness consumer 
 30.7   sales taxes paid by individuals in calendar year 1999. 
 30.8      (c) Information concerning the amount of sales tax paid at 
 30.9   various income levels is contained in the Minnesota tax 
 30.10  incidence report, which is written by the commissioner of 
 30.11  revenue and presented to the legislature according to Minnesota 
 30.12  Statutes, section 270.0682. 
 30.13     (d) It is fair and reasonable to use information contained 
 30.14  in the Minnesota tax incidence report to determine the 
 30.15  proportionate share of the sales tax rebate due each eligible 
 30.16  taxpayer since no effective or practical mechanism exists for 
 30.17  determining the amount of actual sales tax paid by each eligible 
 30.18  individual. 
 30.19     Sec. 2.  [SALES TAX REBATE.] 
 30.20     Subdivision 1.  [ELIGIBILITY; REBATE BASED ON INCOME.] An 
 30.21  individual who was a resident of Minnesota for any part of 1999, 
 30.22  and filed a 1999 Minnesota income tax return on or before 
 30.23  November 30, 2001, and had a tax liability before refundable 
 30.24  credits on that return of at least $1 and who was not allowed to 
 30.25  be claimed as a dependent on a 1999 federal income tax return 
 30.26  filed by another person is eligible for a sales tax rebate based 
 30.27  on income under either subdivision 2 or 3. 
 30.28     Subd. 2.  [MARRIED JOINT AND HEAD OF HOUSEHOLD FILERS.] The 
 30.29  sales tax rebate for taxpayers who qualify under subdivision 1 
 30.30  and are married filing joint or head of household filers is 
 30.31  computed according to the following schedule: 
 30.32       Income                                Sales Tax Rebate
 30.33   less than $2,500                                $237
 30.34   at least $2,500 but less than $5,000            $295
 30.35   at least $5,000 but less than $10,000           $309
 30.36   at least $10,000 but less than $15,000          $341
 31.1    at least $15,000 but less than $20,000          $386
 31.2    at least $20,000 but less than $25,000          $417
 31.3    at least $25,000 but less than $30,000          $445
 31.4    at least $30,000 but less than $35,000          $483
 31.5    at least $35,000 but less than $40,000          $526
 31.6    at least $40,000 but less than $45,000          $571
 31.7    at least $45,000 but less than $50,000          $606
 31.8    at least $50,000 but less than $60,000          $621
 31.9    at least $60,000 but less than $70,000          $648
 31.10   at least $70,000 but less than $80,000          $706
 31.11   at least $80,000 but less than $90,000          $762
 31.12   at least $90,000 but less than $100,000         $825
 31.13   at least $100,000 but less than $120,000        $894
 31.14   at least $120,000 but less than $140,000        $979
 31.15   at least $140,000 but less than $160,000      $1,058
 31.16   at least $160,000 but less than $180,000      $1,133
 31.17   at least $180,000 but less than $200,000      $1,204
 31.18   at least $200,000 but less than $400,000      $1,540
 31.19   at least $400,000 but less than $600,000      $2,026
 31.20   at least $600,000 but less than $800,000      $2,431
 31.21   at least $800,000 but less than $1,000,000    $2,787
 31.22   $1,000,000 and over                           $3,250
 31.23     Subd. 3.  [SINGLE AND MARRIED SEPARATE FILERS.] The sales 
 31.24  tax rebate for individuals who qualify under subdivision 1 as 
 31.25  single or married filing separately is computed according to the 
 31.26  following schedule: 
 31.27       Income                                Sales Tax Rebate
 31.28   less than $2,500                                $120
 31.29   at least $2,500 but less than $5,000            $126
 31.30   at least $5,000 but less than $10,000           $168
 31.31   at least $10,000 but less than $15,000          $200
 31.32   at least $15,000 but less than $20,000          $231
 31.33   at least $20,000 but less than $25,000          $258
 31.34   at least $25,000 but less than $30,000          $311
 31.35   at least $30,000 but less than $40,000          $335
 31.36   at least $40,000 but less than $50,000          $370
 32.1    at least $50,000 but less than $70,000          $474
 32.2    at least $70,000 but less than $100,000         $657
 32.3    at least $100,000 but less than $140,000        $792
 32.4    at least $140,000 but less than $200,000        $956
 32.5    at least $200,000 but less than $400,000      $1,295
 32.6    at least $400,000 but less than $600,000      $1,625
 32.7    $600,000 and over                             $1,625
 32.8      Subd. 4.  [NONRESIDENTS.] Individuals who were not 
 32.9   residents of Minnesota for any part of 1999 and who paid more 
 32.10  than $10 in Minnesota sales tax under Minnesota Statutes, 
 32.11  chapter 297A on nonbusiness consumer purchases in that year 
 32.12  qualify for a rebate under this subdivision only.  Qualifying 
 32.13  nonresidents must file a claim for rebate on a form prescribed 
 32.14  by the commissioner by November 30, 2001.  The claim must 
 32.15  include receipts showing the Minnesota sales tax paid and the 
 32.16  date of the sale.  Taxes paid on purchases allowed in the 
 32.17  computation of federal taxable income or reimbursed by an 
 32.18  employer are not eligible for the rebate.  The commissioner 
 32.19  shall determine the qualifying taxes paid and rebate the lesser 
 32.20  of: 
 32.21     (1) 41.25 percent of that amount; or 
 32.22     (2) the maximum amount for which the claimant would have 
 32.23  been eligible as determined under subdivision 2 if the taxpayer 
 32.24  filed the 1999 federal income tax return as a married taxpayer 
 32.25  filing jointly or head of household, or as determined under 
 32.26  subdivision 3 for other taxpayers. 
 32.27     Subd. 5.  [DEFINITION OF INCOME.] "Income," for purposes of 
 32.28  this section other than subdivision 4, is taxable income as 
 32.29  defined in section 63 of the Internal Revenue Code of 1986, as 
 32.30  amended through December 31, 1998, plus the sum of any additions 
 32.31  to federal taxable income for the taxpayer under Minnesota 
 32.32  Statutes, section 290.01, subdivision 19a, and reported on the 
 32.33  original 1999 income tax return, including subsequent 
 32.34  adjustments to that return made within the time limits specified 
 32.35  in subdivision 12.  For an individual who was a resident of 
 32.36  Minnesota for less than the entire year, the sales tax rebate 
 33.1   equals the sales tax rebate calculated under subdivision 2 or 3 
 33.2   multiplied by the percentage determined pursuant to Minnesota 
 33.3   Statutes, section 290.06, subdivision 2c, paragraph (e), as 
 33.4   calculated on the original 1999 income tax return, including 
 33.5   subsequent adjustments to that return made within the time 
 33.6   limits specified in subdivision 12.  For purposes of subdivision 
 33.7   4, "income" is taxable income as defined in section 63 of the 
 33.8   Internal Revenue Code of 1986, as amended through December 31, 
 33.9   1998, and reported on the taxpayer's original federal tax return 
 33.10  for the first taxable year beginning after December 31, 1998. 
 33.11     Subd. 6.  [SOCIAL SECURITY AND PUBLIC PENSION 
 33.12  RECIPIENTS.] (a) An individual qualifies for a rebate of $120 
 33.13  under this subdivision if the individual: 
 33.14     (1) was a resident of Minnesota for all of calendar year 
 33.15  1999; 
 33.16     (2) is not eligible for a rebate under subdivision 9; 
 33.17     (3) attained the age of 18 on or before December 31, 1999; 
 33.18  and 
 33.19     (4)(i) received social security benefits as defined in 
 33.20  section 86(d)(1) of the Internal Revenue Code of 1986, as 
 33.21  amended through December 31, 2000, in calendar year 1999; or 
 33.22     (ii) received federal, state, or local public pension or 
 33.23  disability benefits in calendar year 1999.  
 33.24     (b) An individual or married couple who qualifies for a 
 33.25  rebate under both this subdivision and subdivision 1 is eligible 
 33.26  for the rebate under whichever subdivision provides a larger 
 33.27  amount. 
 33.28     (c) If the Social Security Administration, Railroad 
 33.29  Retirement Board, or the administrator of a public pension is 
 33.30  paying benefits to a recipient by electronic funds transfers in 
 33.31  calendar year 2001, the commissioner may pay the rebate under 
 33.32  this subdivision through electronic funds transfer to the same 
 33.33  financial institution and into the same account into which those 
 33.34  benefits are transferred in calendar year 2001. 
 33.35     (d) For purposes of this subdivision, "public pension plan 
 33.36  administrator" means (1) a state and local public pension 
 34.1   administrator, (2) the federal Civil Service Retirement System, 
 34.2   (3) the United States Department of Defense for the military 
 34.3   retirement and survivors benefit programs, and (4) the Federal 
 34.4   Employees Retirement System. 
 34.5      (e) A state and local public pension administrator is an 
 34.6   entity paying benefits under a pension plan enumerated in 
 34.7   Minnesota Statutes, section 356.20, subdivision 2.  Each state 
 34.8   and local public pension administrator shall provide to the 
 34.9   commissioner of revenue, in a form the commissioner prescribes, 
 34.10  a list of individuals to whom it pays benefits that meet the 
 34.11  requirements of paragraph (a), clauses (1) and (3). 
 34.12     Subd. 7.  [DEPENDENTS.] An individual who: 
 34.13     (1) was allowed to be claimed as a dependent on a 1999 
 34.14  federal income tax return filed by another person; 
 34.15     (2) would have otherwise been eligible for a rebate under 
 34.16  subdivision 1; and 
 34.17     (3) reported earned income as defined in section 
 34.18  32(c)(2)(A)(i) of the Internal Revenue Code, 
 34.19  is eligible for a rebate under this subdivision only.  The 
 34.20  rebate under this subdivision equals 35 percent of the amount 
 34.21  allowed under the schedule in subdivision 3 based on the 
 34.22  individual's income.  For an individual who was a resident of 
 34.23  Minnesota for less than the entire year, the sales tax rebate 
 34.24  equals the rebate calculated under this subdivision multiplied 
 34.25  by the percentage determined pursuant to Minnesota Statutes, 
 34.26  section 290.06, subdivision 2c, paragraph (e), as calculated on 
 34.27  the original 1999 income tax return. 
 34.28     Subd. 8.  [CREDIT RECIPIENTS.] An individual who 
 34.29     (1) was a resident of Minnesota for any part of 1999; 
 34.30     (2) was not eligible for a rebate under subdivision 1, 6, 
 34.31  or 9; 
 34.32     (3) was not allowed to be claimed as a dependent on a 1999 
 34.33  federal income tax return by another person; and 
 34.34     (4)(i) claimed and was eligible for a refund under 
 34.35  Minnesota Statutes, chapter 290A, for property taxes paid in 
 34.36  2000 or rent constituting property taxes paid in 1999 before 
 35.1   November 30, 2001; or 
 35.2      (ii) filed a 1999 Minnesota income tax return before 
 35.3   November 30, 2001, in order to 
 35.4      (A) claim a credit under Minnesota Statutes, section 
 35.5   290.067, 290.0671, or 290.0674; 
 35.6      (B) claim a refund of withheld taxes; or 
 35.7      (C) claim a refund of estimated taxes, 
 35.8   is eligible for a rebate under this subdivision only.  For 
 35.9   married couples filing joint returns and heads of households, 
 35.10  the rebate equals the minimum amount in subdivision 2.  For 
 35.11  single filers and married individuals filing separate returns 
 35.12  and for rebates based on refunds under Minnesota Statutes, 
 35.13  chapter 290A, the rebate equals the minimum amount in 
 35.14  subdivision 3.  For an individual who was a resident of 
 35.15  Minnesota for less than the entire year, the sales tax rebate 
 35.16  equals the rebate calculated under this subdivision multiplied 
 35.17  by the percentage determined under Minnesota Statutes, section 
 35.18  290.06, subdivision 2c, paragraph (e), as calculated on the 
 35.19  original 1999 income tax return.  Notwithstanding the provisions 
 35.20  of Minnesota Statutes 2000, section 289A.60, subdivision 12, an 
 35.21  individual who files a property tax refund claim for property 
 35.22  taxes paid in 2000 or rent constituting property taxes paid in 
 35.23  1999 after August 15, 2001, and before November 30, 2001, is 
 35.24  eligible for a refund under Minnesota Statutes, chapter 290A, 
 35.25  and a rebate under this subdivision.  
 35.26     Subd. 9.  [CLAIMS BASED ON FEDERAL LIABILITIES.] An 
 35.27  individual who: 
 35.28     (1) was a resident of Minnesota for any part of 1999; 
 35.29     (2) filed a 1999 federal income tax return on or before 
 35.30  November 30, 2001; 
 35.31     (3) had a federal taxable income of at least $1; and 
 35.32     (4) does not qualify for a rebate under subdivision 1 or 7, 
 35.33  is eligible for a rebate under this subdivision only. 
 35.34  Qualifying individuals must file a claim for rebate on a form 
 35.35  prescribed by the commissioner by December 31, 2001.  The claim 
 35.36  must include a copy of the individual's 1999 federal income tax 
 36.1   return and a copy of the individual's 1999 Minnesota income tax 
 36.2   return.  An individual who was allowed to be claimed as a 
 36.3   dependent on a 1999 federal income tax return filed by another 
 36.4   person is eligible for a rebate under this subdivision only if 
 36.5   the individual had in 1999 earned income as defined in section 
 36.6   32(c)(2)(A)(i) of the Internal Revenue Code; the rebate of a 
 36.7   dependent eligible for a rebate under this subdivision equals 35 
 36.8   percent of the amount allowed under the schedule in subdivision 
 36.9   3 based on the individual's income.  For all other individuals 
 36.10  who qualify under this subdivision, the rebate equals the amount 
 36.11  allowed based on the individual's income under the schedule in 
 36.12  subdivision 2 for married couples filing joint returns and heads 
 36.13  of household and the amount allowed based on the individual's 
 36.14  income under the schedule in subdivision 3 for single filers and 
 36.15  married filing separately, provided, however, that any rebate 
 36.16  payable under this subdivision to an individual who was a 
 36.17  part-year resident of Minnesota in 1999 must be prorated 
 36.18  according to the formula applicable to part-year residents in 
 36.19  subdivision 5. 
 36.20     Subd. 10.  [FISCAL YEAR TAXPAYERS.] For a fiscal year 
 36.21  taxpayer, the dates in subdivisions 1 through 4 are extended one 
 36.22  month for each month in calendar year 1999 that occurred prior 
 36.23  to the start of the individual's 1999 fiscal tax year. 
 36.24     Subd. 11.  [PAYMENT DATES; INTEREST.] The commissioner of 
 36.25  revenue shall begin paying sales tax rebates by 90 days after 
 36.26  final enactment of this act.  Sales tax rebates not paid by 
 36.27  January 1, 2002, bear interest at the rate specified in 
 36.28  Minnesota Statutes, section 270.75. 
 36.29     Subd. 12.  [NO ADJUSTMENTS AFTER PROCESSING.] A sales tax 
 36.30  rebate may not be adjusted based on changes to a 1999 income tax 
 36.31  return that are made by order of assessment after the date the 
 36.32  rebate is processed, or made by the taxpayer that are filed with 
 36.33  the commissioner of revenue after that date. 
 36.34     Subd. 13.  [JOINT REBATE RULES.] Individuals who filed a 
 36.35  joint income tax return for 1999 must receive a joint sales tax 
 36.36  rebate.  After the sales tax rebate has been issued, but before 
 37.1   the check has been cashed, either joint claimant may request a 
 37.2   separate check for one-half of the joint sales tax rebate.  
 37.3   Notwithstanding anything in this section to the contrary, if 
 37.4   prior to payment, the commissioner has been notified that 
 37.5   persons who filed a joint 1999 income tax return are living at 
 37.6   separate addresses, as indicated on their 2000 income tax return 
 37.7   or otherwise, the commissioner may issue separate checks to each 
 37.8   person.  The amount payable to each person is one-half of the 
 37.9   total joint rebate. 
 37.10     Subd. 14.  [DECEASED INDIVIDUALS.] If a rebate is received 
 37.11  by the estate of a deceased individual after the probate estate 
 37.12  has been closed, and if the original rebate check is returned to 
 37.13  the commissioner with a copy of the decree of descent or final 
 37.14  account of the estate, social security numbers, and addresses of 
 37.15  the beneficiaries, the commissioner may issue separate checks in 
 37.16  proportion to their share in the residuary estate in the names 
 37.17  of the residuary beneficiaries of the estate. 
 37.18     Subd. 15.  [APPLICATION OF OTHER LAW.] (a) The sales tax 
 37.19  rebate is a "Minnesota tax law" for purposes of Minnesota 
 37.20  Statutes, section 270B.01, subdivision 8. 
 37.21     (b) The sales tax rebate is "an overpayment of any tax 
 37.22  collected by the commissioner" for purposes of Minnesota 
 37.23  Statutes, section 270.07, subdivision 5.  For purposes of this 
 37.24  subdivision, a joint sales tax rebate is payable to each spouse 
 37.25  equally. 
 37.26     (c) The sales tax rebate is a refund subject to revenue 
 37.27  recapture under Minnesota Statutes, chapter 270A.  The 
 37.28  commissioner of revenue shall remit the entire refund to the 
 37.29  claimant agency, which shall, upon the request of the spouse who 
 37.30  does not owe the debt, refund one-half of the joint sales tax 
 37.31  rebate to the spouse who does not owe the debt. 
 37.32     Subd. 16.  [LAPSE OF ENTITLEMENT.] If the commissioner of 
 37.33  revenue cannot locate an individual entitled to a sales tax 
 37.34  rebate by July 1, 2003, or if an individual to whom a sales tax 
 37.35  rebate was issued has not cashed the check by July 1, 2003, the 
 37.36  right to the sales tax rebate lapses and the check must be 
 38.1   deposited in the general fund. 
 38.2      Subd. 17.  [CLAIMS FOR UNPAID REBATES.] Individuals 
 38.3   entitled to a sales tax rebate pursuant to subdivision 1, 6, 7, 
 38.4   8, or 9 but who did not receive one, and individuals who receive 
 38.5   a sales tax rebate that was not correctly computed, must file a 
 38.6   claim with the commissioner before July 1, 2002, in a form 
 38.7   prescribed by the commissioner.  These claims must be treated as 
 38.8   if they are a claim for refund under Minnesota Statutes, section 
 38.9   289A.50, subdivisions 4 and 7. 
 38.10     Subd. 18.  [APPROPRIATION.] The rebate is a reduction of 
 38.11  fiscal year 2001 sales tax revenues.  The amount necessary to 
 38.12  make the sales tax rebates and interest provided in this section 
 38.13  is appropriated from the general fund to the commissioner of 
 38.14  revenue in fiscal year 2001 and is available until June 30, 2003.
 38.15     Subd. 19.  [ILLEGALLY CASHED CHECKS.] If a sales tax rebate 
 38.16  check is cashed by someone other than the payee or payees of the 
 38.17  check, and the commissioner of revenue determines that the check 
 38.18  has been forged or improperly endorsed or the commissioner 
 38.19  determines that a rebate was overstated or erroneously issued, 
 38.20  the commissioner may issue an order of assessment for the amount 
 38.21  of the check or the amount the check is overstated against the 
 38.22  person or persons cashing it.  The assessment must be made 
 38.23  within two years after the check is cashed, but if cashing the 
 38.24  check constitutes theft under Minnesota Statutes, section 
 38.25  609.52, or forgery under Minnesota Statutes, section 609.631, 
 38.26  the assessment can be made at any time.  The assessment may be 
 38.27  appealed administratively and judicially.  The commissioner may 
 38.28  take action to collect the assessment in the same manner as 
 38.29  provided by Minnesota Statutes, chapter 289A, for any other 
 38.30  order of the commissioner assessing tax. 
 38.31     Subd. 20.  [AUTHORITY TO CONTRACT WITH VENDOR.] 
 38.32  Notwithstanding Minnesota Statutes, sections 9.031, 16A.40, 
 38.33  16B.49, 16B.50, and any other law to the contrary, the 
 38.34  commissioner of revenue may take whatever actions the 
 38.35  commissioner deems necessary to pay the rebates required by this 
 38.36  section, and may, in consultation with the commissioner of 
 39.1   finance and the state treasurer, contract with a private vendor 
 39.2   or vendors to process, print, and mail the rebate checks or 
 39.3   warrants required under this section and receive and disburse 
 39.4   state funds to pay those checks or warrants. 
 39.5      Subd. 21.  [ELECTRONIC PAYMENT.] The commissioner may pay 
 39.6   rebates required by this section by electronic funds transfer to 
 39.7   individuals who requested that their 2000 individual income tax 
 39.8   refund be paid through electronic funds transfer.  The 
 39.9   commissioner may make the electronic funds transfer payments to 
 39.10  the same financial institution and into the same account as the 
 39.11  2000 individual income tax refund. 
 39.12     Subd. 22.  [ADJUSTMENTS.] A sales tax rebate of 
 39.13  $852,080,000 is authorized for fiscal year 2001.  Before 
 39.14  payment, the commissioner of revenue shall adjust the rebate as 
 39.15  follows: 
 39.16     (1) The rebates calculated in subdivisions 2, 3, 4, 6, 7, 
 39.17  8, and 9 must be proportionately reduced to account for 1999 
 39.18  income tax returns and qualifying property tax refund claims 
 39.19  that are filed on or after January 1, 2001, but before June 30, 
 39.20  2001, so that the estimated amount of sales tax rebate payable 
 39.21  under subdivisions 2, 3, 4, 6, 7, 8, and 9 on the date the 
 39.22  rebate is processed does not exceed the total amount available 
 39.23  for the rebate. 
 39.24     (2) The commissioner of finance shall certify by July 15, 
 39.25  2001, the preliminary fiscal year 2001 general fund net 
 39.26  nondedicated revenues.  The certification shall exclude the 
 39.27  impact of any legislation enacted during the 2001 regular 
 39.28  session and First Special Session.  If certified net 
 39.29  nondedicated revenues are less than the amount forecast in 
 39.30  February 2001, the commissioner of revenue shall proportionately 
 39.31  decrease all rebates under this section. 
 39.32     The adjustments under this subdivision are not a rule 
 39.33  subject to Minnesota Statutes, chapter 14. 
 39.34     Sec. 3.  [APPROPRIATIONS.] 
 39.35     (a) $500,000 for fiscal year 2001 and $800,000 for fiscal 
 39.36  year 2002 is appropriated from the general fund to the 
 40.1   commissioner of revenue to administer the sales tax rebate in 
 40.2   this act.  Any unencumbered balance remaining on June 30, 2001, 
 40.3   does not cancel but is available for expenditure by the 
 40.4   commissioner of revenue until June 30, 2002.  Notwithstanding 
 40.5   Minnesota Statutes, section 16A.285, the commissioner of revenue 
 40.6   may not use this appropriation for any purpose other than 
 40.7   administering the sales tax rebate.  This is a one-time 
 40.8   appropriation and may not be added to the agency's budget base. 
 40.9      (b) $278,000 for fiscal year 2001, and $123,000 for fiscal 
 40.10  year 2002 are appropriated from the general fund to the state 
 40.11  treasurer to pay the cost of clearing sales tax rebate checks 
 40.12  through commercial banks.  This is a one-time appropriation and 
 40.13  may not be added to the budget base.  
 40.14     Sec. 4.  [EFFECTIVE DATE.] 
 40.15     Sections 1 to 3 are effective the day following final 
 40.16                             ARTICLE 3 
 40.17                 STATE TAKEOVER OF COUNTY SERVICES 
 40.18     Section 1.  Minnesota Statutes 2000, section 97A.065, 
 40.19  subdivision 2, is amended to read: 
 40.20     Subd. 2.  [FINES AND FORFEITED BAIL.] (a) Fines and 
 40.21  forfeited bail collected from prosecutions of violations of:  
 40.22  the game and fish laws; sections 84.091 to 84.15; sections 84.81 
 40.23  to 84.91; section 169A.20, when the violation involved an 
 40.24  off-road recreational vehicle as defined in section 169A.03, 
 40.25  subdivision 16; chapter 348; and any other law relating to wild 
 40.26  animals or aquatic vegetation, must be paid to the treasurer of 
 40.27  the county where the violation is prosecuted.  The county 
 40.28  treasurer shall submit one-half of the receipts to the 
 40.29  commissioner and credit the balance to the county general 
 40.30  revenue fund except as provided in paragraphs (b), (c), and 
 40.31  (d).  In a county in a judicial district under section 480.181, 
 40.32  subdivision 1, paragraph (b), as added in Laws 1999, chapter 
 40.33  216, article 7, section 26, the share that would otherwise go to 
 40.34  the county under this paragraph must be submitted to the state 
 40.35  treasurer for deposit in the state treasury and credited to the 
 40.36  general fund. 
 41.1      (b) The commissioner must reimburse a county, from the game 
 41.2   and fish fund, for the cost of keeping prisoners prosecuted for 
 41.3   violations under this section if the county board, by 
 41.4   resolution, directs:  (1) the county treasurer to submit all 
 41.5   fines and forfeited bail to the commissioner; and (2) the county 
 41.6   auditor to certify and submit monthly itemized statements to the 
 41.7   commissioner.  
 41.8      (c) The county treasurer shall submit one-half of the 
 41.9   receipts collected under paragraph (a) from prosecutions of 
 41.10  violations of sections 84.81 to 84.91, and 169A.20, except 
 41.11  receipts that are surcharges imposed under section 357.021, 
 41.12  subdivision 6, to the commissioner and credit the balance to the 
 41.13  county general fund.  The commissioner shall credit these 
 41.14  receipts to the snowmobile trails and enforcement account in the 
 41.15  natural resources fund. 
 41.16     (d) The county treasurer shall indicate the amount of the 
 41.17  receipts that are surcharges imposed under section 357.021, 
 41.18  subdivision 6, and shall submit all of those receipts to the 
 41.19  state treasurer. 
 41.20     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 41.21  in the first and fourth districts; July 1, 2004, in the third 
 41.22  and sixth districts; and July 1, 2005, in the second and tenth 
 41.23  districts. 
 41.24     Sec. 2.  Minnesota Statutes 2000, section 179A.101, 
 41.25  subdivision 1, is amended to read: 
 41.26     Subdivision 1.  [COURT EMPLOYEE UNITS.] (a) The state court 
 41.27  administrator shall meet and negotiate with the exclusive 
 41.28  representative of each of the units specified in this section.  
 41.29  The units provided in this section are the only appropriate 
 41.30  units for court employees.  Court employees, unless otherwise 
 41.31  excluded, are included within the units which include the 
 41.32  classifications to which they are assigned for purposes of 
 41.33  compensation.  Initial assignment of classifications to 
 41.34  bargaining units shall be made by the state court administrator 
 41.35  by August 15, 1999 of the year preceding the year in which the 
 41.36  state assumes the cost of court administration in the judicial 
 42.1   district in which the bargaining unit is located.  An exclusive 
 42.2   representative may appeal the initial assignment decision of the 
 42.3   state court administrator by filing a petition with the 
 42.4   commissioner within 45 days of being certified as the exclusive 
 42.5   representative for a judicial district.  The units in this 
 42.6   subdivision are the appropriate units of court employees. 
 42.7      (b) The judicial district unit consists of clerical, 
 42.8   administrative, and technical employees of a judicial district 
 42.9   under section 480.181, subdivision 1, paragraph (b), or of two 
 42.10  or more of these districts that are represented by the same 
 42.11  employee organization or one or more subordinate bodies of the 
 42.12  same employee organization.  The judicial district unit includes 
 42.13  individuals, not otherwise excluded, whose work is typically 
 42.14  clerical or secretarial in nature, including nontechnical data 
 42.15  recording and retrieval and general office work, and 
 42.16  individuals, not otherwise excluded, whose work is not typically 
 42.17  manual and which requires specialized knowledge or skills 
 42.18  acquired through two-year academic programs or equivalent 
 42.19  experience or on-the-job training. 
 42.20     (c) The appellate courts unit consists of clerical, 
 42.21  administrative, and technical employees of the court of appeals 
 42.22  and clerical, administrative, and technical employees of the 
 42.23  supreme court.  The appellate courts unit includes individuals, 
 42.24  not otherwise excluded, whose work is typically clerical or 
 42.25  secretarial in nature, including nontechnical data recording and 
 42.26  retrieval and general office work, and individuals, not 
 42.27  otherwise excluded, whose work is not typically manual and which 
 42.28  requires specialized knowledge or skills acquired through 
 42.29  two-year academic programs or equivalent experience or 
 42.30  on-the-job training. 
 42.31     (d) The court employees professional employee unit consists 
 42.32  of professional employees, not otherwise excluded, that are 
 42.33  employed by the supreme court, the court of appeals, or a 
 42.34  judicial district under section 480.181, subdivision 1, 
 42.35  paragraph (b). 
 42.36     (e) The court employees court reporter unit consists of 
 43.1   court reporters not otherwise excluded who are employed by a 
 43.2   judicial district under section 480.181, subdivision 1, 
 43.3   paragraph (a). 
 43.4      (f) Notwithstanding any provision of this chapter or any 
 43.5   other law to the contrary, judges may appoint and remove court 
 43.6   reporters at their pleasure. 
 43.7      (g) Copies of collective bargaining agreements entered into 
 43.8   under this section must be submitted to the legislative 
 43.9   coordinating commission for the commission's information. 
 43.10     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 43.11  in the first and fourth districts; July 1, 2004, in the third 
 43.12  and sixth districts; and July 1, 2005, in the second and tenth 
 43.13  districts. 
 43.14     Sec. 3.  Minnesota Statutes 2000, section 179A.102, 
 43.15  subdivision 6, is amended to read: 
 43.16     Subd. 6.  [CONTRACT AND REPRESENTATION RESPONSIBILITIES.] 
 43.17  (a) Notwithstanding the provisions of section 179A.101, the 
 43.18  exclusive representatives of units of court employees certified 
 43.19  prior to the effective date of the judicial district coming 
 43.20  under section 480.181, subdivision 1, paragraph (b), remain 
 43.21  responsible for administration of their contracts and for other 
 43.22  contractual duties and have the right to dues and fair share fee 
 43.23  deduction and other contractual privileges and rights until a 
 43.24  contract is agreed upon with the state court administrator for a 
 43.25  new unit established under section 179A.101 or until June 30, 
 43.26  2001, whichever is earlier.  Exclusive representatives of court 
 43.27  employees certified after the effective date of this section in 
 43.28  the judicial district are immediately upon certification 
 43.29  responsible for bargaining on behalf of employees within the 
 43.30  unit.  They are also responsible for administering grievances 
 43.31  arising under previous contracts covering employees included 
 43.32  within the unit which remain unresolved on June 30, 2001, or 
 43.33  upon agreement with the state court administrator on a contract 
 43.34  for a new unit established under section 179A.101, whichever is 
 43.35  earlier.  Where the employer does not object, these 
 43.36  responsibilities may be varied by agreement between the outgoing 
 44.1   and incoming exclusive representatives.  All other rights and 
 44.2   duties of representation begin on July 1, 2001 of the year in 
 44.3   which the state assumes the funding of court administration in 
 44.4   the judicial district, except that exclusive representatives 
 44.5   certified after the effective date of this section shall 
 44.6   immediately, upon certification, have the right to all employer 
 44.7   information and all forms of access to employees within the 
 44.8   bargaining unit which would be permitted to the current contract 
 44.9   holder, including the rights in section 179A.07, subdivision 6.  
 44.10  This section does not affect an existing collective bargaining 
 44.11  contract.  Incoming exclusive representatives of court employees 
 44.12  from judicial districts that come under section 480.181, 
 44.13  subdivision 1, paragraph (b), are immediately, upon 
 44.14  certification, responsible for bargaining on behalf of all 
 44.15  previously unrepresented employees assigned to their units.  All 
 44.16  other rights and duties of exclusive representatives begin on 
 44.17  July 1, 2001 of the year in which the state assumes the funding 
 44.18  of court administration in the judicial district. 
 44.19     (b) Nothing in this act or Laws 1999, chapter 216, article 
 44.20  7, sections 3 to 15, prevents an exclusive representative 
 44.21  certified after the effective date of sections 3 to 15 dates of 
 44.22  those provisions from assessing fair share or dues deductions 
 44.23  immediately upon certification for employees in a unit 
 44.24  established under section 179A.101 if the employees were 
 44.25  unrepresented for collective bargaining purposes before that 
 44.26  certification. 
 44.27     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 44.28  in the first and fourth districts; July 1, 2004, in the third 
 44.29  and sixth districts; and July 1, 2005, in the second and tenth 
 44.30  districts. 
 44.31     Sec. 4.  Minnesota Statutes 2000, section 179A.103, 
 44.32  subdivision 1, is amended to read: 
 44.33     Subdivision 1.  [CONTRACTS.] Contracts for the period 
 44.34  commencing July 1, 2000, of the year in which the state assumes 
 44.35  the cost of court administration in the judicial district for 
 44.36  the judicial district court employees of judicial districts that 
 45.1   are under section 480.181, subdivision 1, paragraph (b), must be 
 45.2   negotiated with the state court administrator.  Negotiations for 
 45.3   those contracts may begin any time after July 1, 1999 of the 
 45.4   year before the state assumes the cost, and may be initiated by 
 45.5   either party notifying the other of the desire to begin the 
 45.6   negotiating process.  Negotiations are subject to this chapter. 
 45.7      [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 45.8   in the first and fourth districts; July 1, 2004, in the third 
 45.9   and sixth districts; and July 1, 2005, in the second and tenth 
 45.10  districts. 
 45.11     Sec. 5.  [245.775] [REIMBURSEMENT OF COUNTY FOR CERTAIN 
 45.12  OUT-OF-HOME PLACEMENTS.] 
 45.13     (a) The commissioner shall reimburse a county for 30 
 45.14  percent of the nonfederal share of the cost of out-of-home 
 45.15  placement.  For purposes of this section, "out-of-home 
 45.16  placement" means the placement of a child in a child caring 
 45.17  institution or shelter licensed under Minnesota Rules, parts 
 45.18  9545.0905 to 9545.1125, in a group home licensed under Minnesota 
 45.19  Rules, parts 9545.1400 to 9545.1500, in family foster care or 
 45.20  group family foster care licensed under Minnesota Rules, parts 
 45.21  9545.0010 to 9545.0260, or a correctional facility pursuant to a 
 45.22  court order when a county social services agency is assigned 
 45.23  financial responsibility for the placement.  For purposes of 
 45.24  this section, "out-of-home placement" includes voluntary and 
 45.25  tribal court-ordered placement of an Indian child under sections 
 45.26  260.765 and 260.771.  For purposes of this section, 
 45.27  "commissioner" means the commissioner of revenue.  
 45.28     (b) The manner for making the reimbursement for costs under 
 45.29  paragraph (a) to the county is as follows: 
 45.30     (1) beginning in July 2002, and annually thereafter, the 
 45.31  commissioner will forecast out-of-home placements for each 
 45.32  calendar year and make payments as follows: 
 45.33     (i) in July of each year, the commissioner will make a 
 45.34  payment to a county to cover 12 percent of the county's 
 45.35  anticipated nonfederal costs of out-of-home placements for that 
 45.36  calendar year; 
 46.1      (ii) in September of each year, the commissioner will make 
 46.2   an additional payment, if necessary, to a county so that this 
 46.3   payment and the payment in item (i) reflect 30 percent of the 
 46.4   actual expenditures by the county of the nonfederal costs of 
 46.5   out-of-home placements for that county for the period January 
 46.6   through June of that calendar year; 
 46.7      (iii) in December of each year, the commissioner will make 
 46.8   a payment to a county which, when added to the payments in items 
 46.9   (i) and (ii), reflects 27 percent of the county's anticipated 
 46.10  nonfederal costs of out-of-home placements for that calendar 
 46.11  year; and 
 46.12     (iv) in March of the calendar year following the payments 
 46.13  made in items (i) to (iii), the commissioner will settle up with 
 46.14  each county by making an additional payment to or recovering 
 46.15  money from the county as necessary to reconcile the net amount 
 46.16  of the payments received by the county under items (i) to (iii) 
 46.17  with the total reimbursement to be made to the county under 
 46.18  paragraph (c). 
 46.19     (c) The total reimbursement to the county under paragraph 
 46.20  (b) shall be the lesser of: 
 46.21     (1) 30 percent; or 
 46.22     (2) a lesser percentage, so that total payments under this 
 46.23  section and sections 260.765, subdivision 2a, and 260.771, 
 46.24  subdivision 4a, equal the maximum appropriation allowed under 
 46.25  section 245.776, 
 46.26  of the actual expenditures by the county of the nonfederal costs 
 46.27  of out-of-home placements for the calendar year. 
 46.28     [EFFECTIVE DATE.] This section is effective beginning with 
 46.29  out-of-home placement costs incurred in calendar year 2002. 
 46.30     Sec. 6.  [245.776] [ANNUAL APPROPRIATION.] 
 46.31     A sum sufficient to discharge the duties imposed by 
 46.32  sections 245.775; 260.765, subdivision 2a; and 260.771, 
 46.33  subdivision 4a, is annually appropriated from the general fund 
 46.34  to the commissioner of human services.  The payments under these 
 46.35  sections are limited to $49,400,000 in fiscal year 2003.  The 
 46.36  payments under these sections in fiscal year 2004 and thereafter 
 47.1   are limited to an amount equal to: 
 47.2      (1) the maximum allowed appropriation under this section in 
 47.3   the previous calendar year, multiplied by 
 47.4      (2) one plus the percentage increase in the implicit price 
 47.5   deflator for government consumption expenditures and gross 
 47.6   investment for state and local governments prepared by the 
 47.7   Bureau of Economic Analysis of the United States Department of 
 47.8   Commerce for the 12-month period ending March 31 of the previous 
 47.9   year. 
 47.10     Sec. 7.  Minnesota Statutes 2000, section 260.765, is 
 47.11  amended by adding a subdivision to read: 
 47.12     Subd. 2a.  [REIMBURSEMENT FOR A PORTION OF COSTS.] When an 
 47.13  Indian child is voluntarily placed in foster care by a tribal 
 47.14  social services agency, the commissioner shall reimburse 30 
 47.15  percent of the nonfederal share of the costs of the placement.  
 47.16  The mechanism for reimbursement must be the same used for county 
 47.17  reimbursement of out-of-home placement costs under section 
 47.18  245.775. 
 47.19     [EFFECTIVE DATE.] This section is effective beginning with 
 47.20  foster care costs incurred after January 1, 2002. 
 47.21     Sec. 8.  Minnesota Statutes 2000, section 260.771, is 
 47.22  amended by adding a subdivision to read: 
 47.23     Subd. 4a.  [REIMBURSEMENT FOR A PORTION OF COSTS.] When an 
 47.24  Indian child is placed by a tribal social services agency 
 47.25  according to tribal court order, the commissioner shall 
 47.26  reimburse 30 percent of the nonfederal share of the costs of the 
 47.27  placement.  The mechanism for reimbursement must be the same 
 47.28  used for county reimbursement of out-of-home placement costs 
 47.29  under section 245.775. 
 47.30     [EFFECTIVE DATE.] This section is effective beginning with 
 47.31  out-of-home placement costs incurred after January 1, 2002. 
 47.32     Sec. 9.  Minnesota Statutes 2000, section 273.1398, 
 47.33  subdivision 4a, is amended to read: 
 47.34     Subd. 4a.  [AID OFFSET FOR COURT COSTS.] (a) By July 15, 
 47.35  1999 of the year preceding the year in which the state assumes 
 47.36  the cost of court administration in the judicial district as 
 48.1   specified under section 480.183, the supreme court shall 
 48.2   determine and certify to the commissioner of revenue for each 
 48.3   county, other than counties located in the eighth judicial 
 48.4   district, the county's share of the costs assumed in the 
 48.5   judicial districts specified under Laws 1999, chapter 216, 
 48.6   article 7, section 480.183, subdivision 1, during the succeeding 
 48.7   fiscal year beginning July 1, 2000,. 
 48.8      (b) The amount certified in paragraph (a) shall be equal to 
 48.9   the following: 
 48.10     (i) 103 percent of the required court administration 
 48.11  expenditures as defined under section 480.183, subdivision 3, 
 48.12  for calendar year 2003, as determined under subdivision 4b, 
 48.13  paragraph (a); plus 
 48.14     (ii) the required mandated court services expenditures as 
 48.15  defined under section 480.183, subdivision 4, for the calendar 
 48.16  year in which the court transfer will occur, as determined under 
 48.17  subdivision 4b, paragraph (b); plus 
 48.18     (iii) an adjustment for any cumulative percentage increase 
 48.19  in salary expenditures as defined under section 480.183, 
 48.20  subdivision 2, in excess of the maintenance of effort percentage 
 48.21  for the county, as determined under subdivision 4b, paragraph 
 48.22  (d); less 
 48.23     (iv) an amount equal to the county's share of transferred 
 48.24  fines collected by the district courts in the county during the 
 48.25  calendar year 1998 2003.  
 48.26     The court and the county may, if both parties agree, 
 48.27  negotiate and certify an amount higher than the amount 
 48.28  calculated under this paragraph. 
 48.29     (c) For purposes of this subdivision, the adjustment in 
 48.30  paragraph (b), clause (iii), shall be equal to: 
 48.31     (1) the sum of the court administration expenditures as 
 48.32  defined under section 480.183, subdivision 3, required under 
 48.33  subdivision 4b, paragraph (a), plus the temporary aid payment 
 48.34  under subdivision 4c; multiplied by 
 48.35     (2) the difference between (i) the cumulative percentage 
 48.36  increase in actual and anticipated salary settlements for court 
 49.1   employees from July 1, 2001, until the date of the court 
 49.2   transfer and (ii) the maintenance of effort percent of the 
 49.3   county for the year in which the court transfer occurs, as 
 49.4   determined under subdivision 4b, paragraph (d).  
 49.5      (b) (d) Payments to a county under subdivision 2 or section 
 49.6   273.166 for the calendar year 2000 in which the state assumes 
 49.7   the cost of court administration and mandated services as 
 49.8   defined under section 480.183, subdivisions 4 and 5, in the 
 49.9   judicial district must be permanently reduced by an amount equal 
 49.10  to 75 percent of the net cost to the state for assumption of 
 49.11  district court costs as certified in paragraph (a). 
 49.12     (c) (e) Payments to a county under subdivision 2 or section 
 49.13  273.166 for the calendar year 2001 after the calendar year in 
 49.14  which the state assumes the cost of court administration and 
 49.15  mandated services as defined under section 480.183, subdivisions 
 49.16  4 and 5, in the judicial district must be permanently reduced by 
 49.17  an amount equal to 25 percent of the net cost to the state for 
 49.18  assumption of district court costs as certified in paragraph (a).
 49.19     (d) (f) Payments to a county under subdivision 2 for 
 49.20  calendar year 2001 are permanently increased by an amount equal 
 49.21  to 7.5 percent of the county's share of transferred fines 
 49.22  collected by the district courts in the county during calendar 
 49.23  year 1998, as determined under paragraph (a).  If the amount 
 49.24  determined in paragraph (a) exceeds the amount of aid a county 
 49.25  is scheduled to be paid under subdivision 2 in 2000, then the 
 49.26  county shall not receive an aid increase under this paragraph. 
 49.27     [EFFECTIVE DATE.] This section is effective the day 
 49.28  following final enactment. 
 49.29     Sec. 10.  Minnesota Statutes 2000, section 273.1398, is 
 49.30  amended by adding a subdivision to read: 
 49.31     Subd. 4b.  [COURT EXPENDITURES; MAINTENANCE OF EFFORT.] (a) 
 49.32  Until the costs of court administration as defined under section 
 49.33  480.183, subdivision 3, in a county have been transferred to the 
 49.34  state, each county in a judicial district transferring court 
 49.35  administration costs to state funding after July 1, 2001, shall 
 49.36  budget for the funding of these costs an amount at least equal 
 50.1   to the certified budget amount for calendar year 2001 multiplied 
 50.2   by the maintenance of effort percent for each year from 2001 to 
 50.3   2003.  The county shall budget, fund, and authorize expenditures 
 50.4   not less than the amount calculated under this paragraph plus 
 50.5   the temporary aid amount under subdivision 4c for maintenance of 
 50.6   effort of administrative costs. 
 50.7      (b) Until the costs of mandated court services as defined 
 50.8   under section 480.183, subdivision 4, in a county have been 
 50.9   transferred to the state, each county in a judicial district 
 50.10  transferring the costs of mandated court services to state 
 50.11  funding after July 1, 2001, shall budget for the funding of 
 50.12  these costs an amount at least equal to the certified budgeted 
 50.13  amount for calendar year 2001 multiplied by the maintenance of 
 50.14  effort percent from 2001 to the year of the transfer.  The 
 50.15  county shall budget, fund, and authorize expenditures not less 
 50.16  than the amount calculated under this paragraph for maintenance 
 50.17  of effort of mandated services.  
 50.18     (c) By July 1, 2001, the court shall certify to each county 
 50.19  in the judicial district its cost of court administration and 
 50.20  its cost of mandated services as defined under section 480.183, 
 50.21  subdivisions 3 and 4, based on 2001 budgets.  In making that 
 50.22  determination, the court shall exclude the budget costs of the 
 50.23  county for the following categories: 
 50.24     (1) rent; 
 50.25     (2) examiner of titles; 
 50.26     (3) civil court appointed attorneys for civil matters; and 
 50.27     (4) hospitalization costs. 
 50.28     (d) For purposes of this subdivision, a county's 
 50.29  "maintenance of effort percent" is equal to one plus the average 
 50.30  annual percent increase in court operating expenditures for all 
 50.31  counties in that judicial district for the period from 1996 to 
 50.32  1999, as reported in the annual state auditor reports on 
 50.33  revenues, expenditures, and debt for Minnesota counties, raised 
 50.34  to a power equal to the difference between the budget year and 
 50.35  2001.  The annual percentage under this paragraph must be 
 50.36  rounded to the nearest one-tenth of one percent. 
 51.1      [EFFECTIVE DATE.] This section is effective the day 
 51.2   following final enactment. 
 51.3      Sec. 11.  Minnesota Statutes 2000, section 273.1398, is 
 51.4   amended by adding a subdivision to read: 
 51.5      Subd. 4c.  [TEMPORARY AID; COURT ADMINISTRATION COSTS.] For 
 51.6   calendar years 2004 and 2005, each county in a judicial district 
 51.7   that has not been transferred to the state by January 1 of that 
 51.8   year shall receive additional homestead and agricultural credit 
 51.9   aid.  This amount is in addition to the amount calculated under 
 51.10  subdivision 2 and must not be included in the definition of 
 51.11  homestead and agricultural credit base under subdivision 1, 
 51.12  paragraph (j).  The amount of additional aid is equal to the 
 51.13  difference between (1) the amount budgeted for court 
 51.14  administration costs in 2001 as determined under subdivision 4b, 
 51.15  paragraph (c), multiplied by the maintenance of effort percent 
 51.16  for the calendar year as determined under subdivision 4b, 
 51.17  paragraph (d), and (2) the amount calculated under subdivision 
 51.18  4b, paragraph (a), for calendar year 2003.  This additional aid 
 51.19  must be used only to fund court administration expenditures as 
 51.20  defined in section 480.183, subdivision 3.  This amount must be 
 51.21  added to the state court's base budget in the year when the 
 51.22  court in that judicial district in which the county is located 
 51.23  is transferred to the state. 
 51.24     [EFFECTIVE DATE.] This section is effective the day 
 51.25  following final enactment.  
 51.26     Sec. 12.  Minnesota Statutes 2000, section 273.1398, is 
 51.27  amended by adding a subdivision to read: 
 51.28     Subd. 4d.  [JUDICIAL DISTRICT MANDATED COURT SERVICES 
 51.29  AID.] (a) Mandated court services aid as provided in section 
 51.30  477A.0121, subdivision 4a, must be used to assist judicial 
 51.31  districts in the transition from the property tax funding to the 
 51.32  state funding of mandated court services as defined in section 
 51.33  480.183, subdivision 3, for the remaining judicial districts. 
 51.34     (b) The mandated court services aid shall be provided only 
 51.35  for aids payable in calendar years 2001 to 2004 to the court for 
 51.36  those judicial districts that have not been transferred to the 
 52.1   state by January 1 of those calendar years.  The mandated court 
 52.2   services aid will be as follows: 
 52.3      (1) for the first judicial district, $372,757 for fiscal 
 52.4   year 2002 and $590,970 for fiscal year 2003; 
 52.5      (2) for the fourth judicial district, $674,264 for fiscal 
 52.6   year 2002 and $1,068,975 for fiscal year 2003; 
 52.7      (3) for the third judicial district, $473,562 for fiscal 
 52.8   year 2002 and $750,785 in each year for fiscal years 2003 and 
 52.9   2004; 
 52.10     (4) for the sixth judicial district, $121,287 for fiscal 
 52.11  year 2002 and $192,288 in each year for fiscal years 2003 and 
 52.12  2004; 
 52.13     (5) for the second judicial district, $277,237 for fiscal 
 52.14  year 2002 and $439,530 in each year for fiscal years 2003 to 
 52.15  2005; and 
 52.16     (6) for the tenth judicial district, $422,891 for fiscal 
 52.17  year 2002 and $670,453 in each year for fiscal years 2003 to 
 52.18  2005. 
 52.19     (c) The mandated court services aid as contained in 
 52.20  paragraph (b) must be added to the state court's base budget for 
 52.21  subsequent fiscal years. 
 52.22     [EFFECTIVE DATE.] This section is effective the day 
 52.23  following final enactment. 
 52.24     Sec. 13.  Minnesota Statutes 2000, section 273.1398, is 
 52.25  amended by adding a subdivision to read: 
 52.26     Subd. 4e.  [JUDICIAL DISTRICT STATE TAKEOVER TRANSITION 
 52.27  AID.] (a) Judicial district state takeover transition aid as 
 52.28  provided in section 477A.0121, subdivision 4a, must be used to 
 52.29  assist in the transition from the property tax funding to the 
 52.30  state funding of district court administration costs for the 
 52.31  remaining judicial districts.  This aid is temporary and is 
 52.32  intended to finance those costs for accounting and human 
 52.33  resources which are necessary for the state court to expend to 
 52.34  prepare for the transfer of districts to the state. 
 52.35     (b) The transition aid must be provided only for the two 
 52.36  years prior to the scheduled state takeover under section 
 53.1   480.183, subdivision 1.  The transition aid will be as follows: 
 53.2      (1) $152,000 for fiscal year 2002; 
 53.3      (2) $442,000 for fiscal year 2003; 
 53.4      (3) $428,000 for fiscal year 2004; and 
 53.5      (4) $276,000 for fiscal year 2005. 
 53.6      (c) The transition aid in paragraph (b) must not be added 
 53.7   to the state court's base budget for any subsequent fiscal years.
 53.8      [EFFECTIVE DATE.] This section is effective the day 
 53.9   following final enactment. 
 53.10     Sec. 14.  Minnesota Statutes 2000, section 273.1398, is 
 53.11  amended by adding a subdivision to read: 
 53.12     Subd. 4f.  [AID OFFSET FOR OUT-OF-HOME PLACEMENT 
 53.13  COSTS.] For aid payable in 2002, each county's aid under 
 53.14  subdivision 2 must be permanently reduced by an amount equal to 
 53.15  30 percent of the county's estimated 2002 nonfederal 
 53.16  expenditures for out-of-home placements, as defined in section 
 53.17  245.775.  The counties shall provide all information requested 
 53.18  by the commissioner of human services necessary to allow the 
 53.19  commissioner to estimate and certify these nonfederal costs to 
 53.20  the commissioner of revenue by September 1, 2001.  The aid 
 53.21  reduction under this subdivision must be made prior to any aid 
 53.22  reductions for the state takeover of courts contained in this 
 53.23  article. 
 53.24     [EFFECTIVE DATE.] This section is effective the day after 
 53.25  final enactment, for aids payable beginning in 2002. 
 53.26     Sec. 15.  Minnesota Statutes 2000, section 299D.03, 
 53.27  subdivision 5, is amended to read: 
 53.28     Subd. 5.  [FINES AND FORFEITED BAIL MONEY.] (a) All fines 
 53.29  and forfeited bail money, from traffic and motor vehicle law 
 53.30  violations, collected from persons apprehended or arrested by 
 53.31  officers of the state patrol, shall be paid by the person or 
 53.32  officer collecting the fines, forfeited bail money or 
 53.33  installments thereof, on or before the tenth day after the last 
 53.34  day of the month in which these moneys were collected, to the 
 53.35  county treasurer of the county where the violation occurred.  
 53.36  Three-eighths of these receipts shall be credited to the general 
 54.1   revenue fund of the county, except that in a county in a 
 54.2   judicial district under section 480.181, subdivision 1, 
 54.3   paragraph (b), as added in Laws 1999, chapter 216, article 7, 
 54.4   section 26, this three-eighths share must be transmitted to the 
 54.5   state treasurer for deposit in the state treasury and credited 
 54.6   to the general fund.  The other five-eighths of these receipts 
 54.7   shall be transmitted by that officer to the state treasurer 
 54.8   and shall be credited as follows: 
 54.9      (1) In the fiscal year ending June 30, 1991, the first 
 54.10  $275,000 in money received by the state treasurer after June 4, 
 54.11  1991, must be credited to the transportation services fund, and 
 54.12  the remainder in the fiscal year credited to the trunk highway 
 54.13  fund. 
 54.14     (2) In fiscal year 1992, the first $215,000 in money 
 54.15  received by the state treasurer in the fiscal year must be 
 54.16  credited to the transportation services fund, and the remainder 
 54.17  credited to the trunk highway fund. 
 54.18     (3) In fiscal year 1993 and subsequent years, the entire 
 54.19  amount received by the state treasurer must be credited to the 
 54.20  trunk highway fund.  If, however, the violation occurs within a 
 54.21  municipality and the city attorney prosecutes the offense, and a 
 54.22  plea of not guilty is entered, one-third of the receipts shall 
 54.23  be credited to the general revenue fund of the county, one-third 
 54.24  of the receipts shall be paid to the municipality prosecuting 
 54.25  the offense, and one-third shall be transmitted to the state 
 54.26  treasurer as provided in this subdivision.  All costs of 
 54.27  participation in a nationwide police communication system 
 54.28  chargeable to the state of Minnesota shall be paid from 
 54.29  appropriations for that purpose. 
 54.30     (b) Notwithstanding any other provisions of law, all fines 
 54.31  and forfeited bail money from violations of statutes governing 
 54.32  the maximum weight of motor vehicles, collected from persons 
 54.33  apprehended or arrested by employees of the state of Minnesota, 
 54.34  by means of stationary or portable scales operated by these 
 54.35  employees, shall be paid by the person or officer collecting the 
 54.36  fines or forfeited bail money, on or before the tenth day after 
 55.1   the last day of the month in which the collections were made, to 
 55.2   the county treasurer of the county where the violation 
 55.3   occurred.  Five-eighths of these receipts shall be transmitted 
 55.4   by that officer to the state treasurer and shall be credited to 
 55.5   the highway user tax distribution fund.  Three-eighths of these 
 55.6   receipts shall be credited to the general revenue fund of the 
 55.7   county, except that in a county in a judicial district under 
 55.8   section 480.181, subdivision 1, paragraph (b), as added in Laws 
 55.9   1999, chapter 216, article 7, section 26, this three-eighths 
 55.10  share must be transmitted to the state treasurer for deposit in 
 55.11  the state treasury and credited to the general fund. 
 55.12     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 55.13  in the first and fourth districts; July 1, 2004, in the third 
 55.14  and sixth districts; and July 1, 2005, in the second and tenth 
 55.15  districts. 
 55.16     Sec. 16.  Minnesota Statutes 2000, section 357.021, 
 55.17  subdivision 1a, is amended to read: 
 55.18     Subd. 1a.  [TRANSMITTAL OF FEES TO STATE TREASURER.] (a) 
 55.19  Every person, including the state of Minnesota and all bodies 
 55.20  politic and corporate, who shall transact any business in the 
 55.21  district court, shall pay to the court administrator of said 
 55.22  court the sundry fees prescribed in subdivision 2.  Except as 
 55.23  provided in paragraph (d), the court administrator shall 
 55.24  transmit the fees monthly to the state treasurer for deposit in 
 55.25  the state treasury and credit to the general fund.  
 55.26     (b) In a county which has a screener-collector position, 
 55.27  fees paid by a county pursuant to this subdivision shall be 
 55.28  transmitted monthly to the county treasurer, who shall apply the 
 55.29  fees first to reimburse the county for the amount of the salary 
 55.30  paid for the screener-collector position.  The balance of the 
 55.31  fees collected shall then be forwarded to the state treasurer 
 55.32  for deposit in the state treasury and credited to the general 
 55.33  fund.  In a county in a judicial district under section 480.181, 
 55.34  subdivision 1, paragraph (b), as added in Laws 1999, chapter 
 55.35  216, article 7, section 26, which has a screener-collector 
 55.36  position, the fees paid by a county shall be transmitted monthly 
 56.1   to the state treasurer for deposit in the state treasury and 
 56.2   credited to the general fund.  A screener-collector position for 
 56.3   purposes of this paragraph is an employee whose function is to 
 56.4   increase the collection of fines and to review the incomes of 
 56.5   potential clients of the public defender, in order to verify 
 56.6   eligibility for that service. 
 56.7      (c) No fee is required under this section from the public 
 56.8   authority or the party the public authority represents in an 
 56.9   action for: 
 56.10     (1) child support enforcement or modification, medical 
 56.11  assistance enforcement, or establishment of parentage in the 
 56.12  district court, or in a proceeding under section 484.702; 
 56.13     (2) civil commitment under chapter 253B; 
 56.14     (3) the appointment of a public conservator or public 
 56.15  guardian or any other action under chapters 252A and 525; 
 56.16     (4) wrongfully obtaining public assistance under section 
 56.17  256.98 or 256D.07, or recovery of overpayments of public 
 56.18  assistance; 
 56.19     (5) court relief under chapter 260; 
 56.20     (6) forfeiture of property under sections 169A.63 and 
 56.21  609.531 to 609.5317; 
 56.22     (7) recovery of amounts issued by political subdivisions or 
 56.23  public institutions under sections 246.52, 252.27, 256.045, 
 56.24  256.25, 256.87, 256B.042, 256B.14, 256B.15, 256B.37, 260B.331, 
 56.25  and 260C.331, or other sections referring to other forms of 
 56.26  public assistance; 
 56.27     (8) restitution under section 611A.04; or 
 56.28     (9) actions seeking monetary relief in favor of the state 
 56.29  pursuant to section 16D.14, subdivision 5. 
 56.30     (d) The fees collected for child support modifications 
 56.31  under subdivision 2, clause (13), must be transmitted to the 
 56.32  county treasurer for deposit in the county general fund.  The 
 56.33  fees must be used by the county to pay for child support 
 56.34  enforcement efforts by county attorneys. 
 56.35     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 56.36  in the first and fourth districts; July 1, 2004, in the third 
 57.1   and sixth districts; and July 1, 2005, in the second and tenth 
 57.2   districts. 
 57.3      Sec. 17.  Minnesota Statutes 2000, section 477A.0121, is 
 57.4   amended by adding a subdivision to read: 
 57.5      Subd. 4a.  [COURT TAKEOVER; MANDATED SERVICES AND 
 57.6   TRANSITION COSTS.] For calendar years 2001 to 2004, an amount 
 57.7   equal to the sum of the additional aid in section 477A.03, 
 57.8   subdivision 6, shall be retained by the commissioner of revenue 
 57.9   and transferred to the state court system to fund the mandated 
 57.10  court services aid in section 273.1398, subdivision 4d, and the 
 57.11  judicial district state takeover transition aid in section 
 57.12  273.1398, subdivision 4e. 
 57.13     [EFFECTIVE DATE.] This section is effective for aids 
 57.14  payable in calendar years 2001 to 2004. 
 57.15     Sec. 18.  Minnesota Statutes 2000, section 477A.0122, is 
 57.16  amended by adding a subdivision to read: 
 57.17     Subd. 4a.  [REDUCTIONS FOR INSUFFICIENT HOMESTEAD AND 
 57.18  AGRICULTURAL CREDIT AID.] If the reductions to a county's aid 
 57.19  under section 273.1398, subdivisions 4a and 4f, exceed the 
 57.20  amount of homestead and agricultural credit aid payable to the 
 57.21  county under section 273.1398, subdivision 2, for the year of 
 57.22  the reduction, the county's aid under subdivision 4 must be 
 57.23  permanently reduced by the excess reduction amount in the year 
 57.24  of the reduction.  The aid a county receives under this section 
 57.25  may not be less than zero. 
 57.26     [EFFECTIVE DATE.] This section is effective for aids 
 57.27  payable in 2002 and thereafter. 
 57.28     Sec. 19.  Minnesota Statutes 2000, section 477A.03, 
 57.29  subdivision 2, is amended to read: 
 57.30     Subd. 2.  [ANNUAL APPROPRIATION.] (a) A sum sufficient to 
 57.31  discharge the duties imposed by sections 477A.011 to 477A.014 is 
 57.32  annually appropriated from the general fund to the commissioner 
 57.33  of revenue.  
 57.34     (b) Aid payments to counties under section 477A.0121 are 
 57.35  limited to $20,265,000 in 1996.  Aid payments to counties under 
 57.36  section 477A.0121 are limited to $27,571,625 in 1997.  For aid 
 58.1   payable in 1998 and thereafter, the total aids paid under 
 58.2   section 477A.0121 are the amounts certified to be paid in the 
 58.3   previous year, adjusted for inflation as provided under 
 58.4   subdivision 3.  The additional amount authorized under 
 58.5   subdivision 6 is not included when calculating the appropriation 
 58.6   limits under this paragraph. 
 58.7      (c)(i) For aids payable in 1998 2002 and thereafter, the 
 58.8   total aids paid to counties under section 477A.0122 are the 
 58.9   amounts certified to be paid in the previous year, adjusted for 
 58.10  inflation as provided under subdivision 3, and less any 
 58.11  reduction required under section 477A.0122, subdivision 4a, in 
 58.12  the current year. 
 58.13     (ii) Aid payments to counties under section 477A.0122 in 
 58.14  2000 are further increased by an additional $20,000,000 in 2000. 
 58.15     (d) Aid payments to cities in 1999 under section 477A.013, 
 58.16  subdivision 9, are limited to $380,565,489.  For aids payable in 
 58.17  2000, the total aids paid under section 477A.013, subdivision 9, 
 58.18  are the amounts certified to be paid in the previous year, 
 58.19  adjusted for inflation as provided in subdivision 3, and 
 58.20  increased by the amount necessary to effectuate Laws 1999, 
 58.21  chapter 243, article 5, section 48, paragraph (b).  For aids 
 58.22  payable in 2001 through 2003, the total aids paid under section 
 58.23  477A.013, subdivision 9, are the amounts certified to be paid in 
 58.24  the previous year, adjusted for inflation as provided under 
 58.25  subdivision 3.  For aids payable in 2004, the total aids paid 
 58.26  under section 477A.013, subdivision 9, are the amounts certified 
 58.27  to be paid in the previous year, adjusted for inflation as 
 58.28  provided under subdivision 3, and increased by the amount 
 58.29  certified to be paid in 2003 under section 477A.06.  For aids 
 58.30  payable in 2005 and thereafter, the total aids paid under 
 58.31  section 477A.013, subdivision 9, are the amounts certified to be 
 58.32  paid in the previous year, adjusted for inflation as provided 
 58.33  under subdivision 3.  The additional amount authorized under 
 58.34  subdivision 4 is not included when calculating the appropriation 
 58.35  limits under this paragraph. 
 58.36     [EFFECTIVE DATE.] Paragraph (b) is effective for aids 
 59.1   payable in calendar years 2001 to 2004.  Paragraph (c) is 
 59.2   effective for aids payable in 2002 and thereafter. 
 59.3      Sec. 20.  Minnesota Statutes 2000, section 477A.03, is 
 59.4   amended by adding a subdivision to read: 
 59.5      Subd. 6.  [ADDITIONAL MONEY FOR COUNTY CRIMINAL JUSTICE 
 59.6   AID.] For the calendar years 2001 to 2004, the limit on the 
 59.7   appropriation for aids paid under section 477A.0121, as 
 59.8   determined in subdivision 2, paragraph (b), is increased by: 
 59.9      (1) $2,494,000 in calendar year 2001; 
 59.10     (2) $4,155,000 in calendar year 2002; 
 59.11     (3) $2,481,000 in calendar year 2003; and 
 59.12     (4) $1,386,000 in calendar year 2004. 
 59.13     [EFFECTIVE DATE.] This section is effective for aids 
 59.14  payable in calendar years 2001 to 2004. 
 59.15     Sec. 21.  Minnesota Statutes 2000, section 480.181, 
 59.16  subdivision 1, is amended to read: 
 59.17     Subdivision 1.  [STATE EMPLOYEES; COMPENSATION.] (a) 
 59.18  District court referees, judicial officers, court reporters, law 
 59.19  clerks, district administration staff, other than district 
 59.20  administration staff in the second and fourth judicial 
 59.21  districts, guardian ad litem program coordinators and staff, and 
 59.22  other court employees under paragraph (b), are state employees 
 59.23  and are governed by the judicial branch personnel rules adopted 
 59.24  by the supreme court.  The supreme court, in consultation with 
 59.25  the conference of chief judges, shall establish the salary range 
 59.26  of these employees under the judicial branch personnel rules.  
 59.27  In establishing the salary ranges, the supreme court shall 
 59.28  consider differences in the cost of living in different areas of 
 59.29  the state. 
 59.30     (b) The court administrator and employees of the court 
 59.31  administrator who are in the fifth, seventh, eighth, or ninth 
 59.32  judicial district are state employees.  The court administrator 
 59.33  and employees of the court administrator in the remaining 
 59.34  judicial districts become state employees as follows: 
 59.35     (1) effective July 1, 2003, for the first and fourth 
 59.36  judicial districts; 
 60.1      (2) effective July 1, 2004, for the third and sixth 
 60.2   judicial districts; and 
 60.3      (3) effective July 1, 2005, for the second and tenth 
 60.4   judicial districts. 
 60.5      Sec. 22.  [480.1811] [POST-RETIREMENT BENEFIT COSTS.] 
 60.6      Where court administration, guardian ad litem, or 
 60.7   interpreter employees elect to retain county insurance benefits 
 60.8   under section 480.181 after July 1, 2001, and the county 
 60.9   provides those employees post-retirement insurance benefits 
 60.10  prior to July 1, 2001, the county shall pay the post-retirement 
 60.11  cost of those benefits. 
 60.12     [EFFECTIVE DATE.] This section is effective the day 
 60.13  following final enactment. 
 60.14     Sec. 23.  [480.183] [JUDICIAL DISTRICTS; SCHEDULED DATES OF 
 60.15  STATE TRANSFER; DEFINITION OF SERVICES.] 
 60.16     Subdivision 1.  [DATE OF STATE TRANSFER.] The mandated 
 60.17  court services and court administration expenditures as defined 
 60.18  in this section for the remaining judicial districts shall be 
 60.19  transferred to the state according to the following schedule: 
 60.20     (1) effective July 1, 2003, the first and fourth judicial 
 60.21  districts; 
 60.22     (2) effective July 1, 2004, the third and sixth judicial 
 60.23  districts; and 
 60.24     (3) effective July 1, 2005, the second and tenth judicial 
 60.25  districts. 
 60.26     Subd. 2.  [DEFINITION; SALARY EXPENDITURES.] "Salary 
 60.27  expenditures" means the salary of court administration 
 60.28  employees, including salaries, related fringe benefits, and 
 60.29  insurance, granted to court and other county employees in 
 60.30  collective bargaining or county pay plans. 
 60.31     Subd. 3.  [DEFINITION; COURT ADMINISTRATION 
 60.32  EXPENDITURES.] "Court administration expenditures" means the 
 60.33  total expenditures of (1) salary expenditures as defined under 
 60.34  subdivision 2 and (2) other related administrative operating 
 60.35  expenditures. 
 60.36     Subd. 4.  [DEFINITION; MANDATED COURT SERVICES.] "Mandated 
 61.1   court services" means services for: 
 61.2      (1) guardian ad litem; 
 61.3      (2) interpreter; 
 61.4      (3) Minnesota Rules, parts 9525.0900 to 9525.1020 (rule 
 61.5   20); 
 61.6      (4) civil commitment examination, not including 
 61.7   hospitalization or treatment costs, for mental commitments and 
 61.8   related proceedings under chapter 253B; and 
 61.9      (5) in forma pauperis costs. 
 61.10     [EFFECTIVE DATE.] This section is effective the day 
 61.11  following final enactment. 
 61.12     Sec. 24.  [484.77] [FACILITIES.] 
 61.13     The county board in each county shall provide suitable 
 61.14  facilities for court purposes at the county seat, or at other 
 61.15  locations agreed upon by the district court and the county.  The 
 61.16  county shall also be responsible for the costs of renting, 
 61.17  maintaining, operating, remodeling, insuring, and renovating 
 61.18  those facilities occupied by the court. 
 61.19     [EFFECTIVE DATE.] This section is effective the day 
 61.20  following final enactment. 
 61.21     Sec. 25.  Minnesota Statutes 2000, section 487.33, 
 61.22  subdivision 5, is amended to read: 
 61.23     Subd. 5.  [ALLOCATION.] The court administrator shall 
 61.24  provide the county treasurer with the name of the municipality 
 61.25  or other subdivision of government where the offense was 
 61.26  committed which employed or provided by contract the arresting 
 61.27  or apprehending officer and the name of the municipality or 
 61.28  other subdivision of government which employed the prosecuting 
 61.29  attorney or otherwise provided for prosecution of the offense 
 61.30  for each fine or penalty and the total amount of fines or 
 61.31  penalties collected for each municipality or other subdivision 
 61.32  of government.  On or before the last day of each month, the 
 61.33  county treasurer shall pay over to the treasurer of each 
 61.34  municipality or subdivision of government within the county all 
 61.35  fines or penalties for parking violations for which complaints 
 61.36  and warrants have not been issued and one-third of all fines or 
 62.1   penalties collected during the previous month for offenses 
 62.2   committed within the municipality or subdivision of government 
 62.3   from persons arrested or issued citations by officers employed 
 62.4   by the municipality or subdivision or provided by the 
 62.5   municipality or subdivision by contract.  An additional 
 62.6   one-third of all fines or penalties shall be paid to the 
 62.7   municipality or subdivision of government providing prosecution 
 62.8   of offenses of the type for which the fine or penalty is 
 62.9   collected occurring within the municipality or subdivision, 
 62.10  imposed for violations of state statute or of an ordinance, 
 62.11  charter provision, rule or regulation of a city whether or not a 
 62.12  guilty plea is entered or bail is forfeited.  Except as provided 
 62.13  in section 299D.03, subdivision 5, or as otherwise provided by 
 62.14  law, all other fines and forfeitures and all fees and statutory 
 62.15  court costs collected by the court administrator shall be paid 
 62.16  to the county treasurer of the county in which the funds were 
 62.17  collected who shall dispense them as provided by law.  In a 
 62.18  county in a judicial district under section 480.181, subdivision 
 62.19  1, paragraph (b), as added in Laws 1999, chapter 216, article 7, 
 62.20  section 26, all other fines, forfeitures, fees, and statutory 
 62.21  court costs must be paid to the state treasurer for deposit in 
 62.22  the state treasury and credited to the general fund. 
 62.23     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 62.24  in the first and fourth districts; July 1, 2004, in the third 
 62.25  and sixth districts; and July 1, 2005, in the second and tenth 
 62.26  districts. 
 62.27     Sec. 26.  Minnesota Statutes 2000, section 574.34, 
 62.28  subdivision 1, is amended to read: 
 62.29     Subdivision 1.  [GENERAL.] Fines and forfeitures not 
 62.30  specially granted or appropriated by law shall be paid into the 
 62.31  treasury of the county where they are incurred, except in a 
 62.32  county in a judicial district under section 480.181, subdivision 
 62.33  1, paragraph (b), as added in Laws 1999, chapter 216, article 7, 
 62.34  section 26, or section 480.181, subdivision 1, the fines and 
 62.35  forfeitures must be deposited in the state treasury and credited 
 62.36  to the general fund. 
 63.1      [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 63.2   in the first and fourth districts; July 1, 2004, in the third 
 63.3   and sixth districts; and July 1, 2005, in the second and tenth 
 63.4   districts. 
 63.5      Sec. 27.  Laws 1999, chapter 216, article 7, section 46, 
 63.6   subdivision 3, is amended to read: 
 63.7      Subd. 3.  [MISCELLANEOUS COST.] The provisions of sections 
 63.8   1, 2, and 18 to 45, relating to the state takeover of court 
 63.9   interpreter costs, guardian ad litem costs, rule 20 and mental 
 63.10  commitment examination costs, and in forma pauperis costs are 
 63.11  effective January 1, 2000, in the eighth judicial district; July 
 63.12  1, 2000, in the fifth, seventh, and ninth judicial districts; 
 63.13  and July 1, 2001, on the date court administration expenditures 
 63.14  and costs of mandated court services as defined under Minnesota 
 63.15  Statutes, section 480.183, subdivisions 4 and 5, are transferred 
 63.16  to the state under Minnesota Statutes, section 480.183, 
 63.17  subdivision 1, in the remaining judicial districts. 
 63.18     [EFFECTIVE DATE.] This section is effective the day 
 63.19  following final enactment. 
 63.20     Sec. 28.  [TRANSITIONAL PROVISIONS.] 
 63.21     Subdivision 1.  [TRANSFER OF PROPERTY.] The title to 
 63.22  personal property that is used by employees being transferred to 
 63.23  state employment under this article in the scope of their 
 63.24  employment is transferred to the state when they become state 
 63.25  employees.  
 63.26     Subd. 2.  [RULES.] The supreme court, in consultation with 
 63.27  the conference of chief judges, may adopt rules to implement 
 63.28  this article.  
 63.29     Subd. 3.  [BUDGETS.] Notwithstanding any law to the 
 63.30  contrary, the fiscal year budgets for the year in which the 
 63.31  state assumes the cost of court administration in the judicial 
 63.32  district for the court administrators' offices being transferred 
 63.33  to state employment under this article, including the number of 
 63.34  complement positions and salaries, must be submitted by the 
 63.35  court administrators to the supreme court.  The budgets must 
 63.36  include the current levels of funding and positions at the time 
 64.1   of submission as well as any requests for increases in funding 
 64.2   and positions. 
 64.3      [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 64.4   in the first and fourth districts; July 1, 2004, in the third 
 64.5   and sixth districts; and July 1, 2005, in the second and tenth 
 64.6   districts. 
 64.7      Sec. 29.  [APPROPRIATION.] 
 64.8      The supreme court general fund appropriation base is 
 64.9   increased by $48,040,000 in fiscal year 2004 and by an 
 64.10  additional $19,452,000 in fiscal year 2005.  In fiscal years 
 64.11  2006 and 2007 the supreme court may request additional base 
 64.12  adjustments to reflect the transfer of the remaining judicial 
 64.13  districts. 
 64.14                             ARTICLE 4
 64.15                           PROPERTY TAXES
 64.16     Section 1.  [126C.455] [SWIMMING POOL LEVY.] 
 64.17     Each year, a school district with its home office located 
 64.18  in a county that has (i) a population density of ten or fewer 
 64.19  persons per square mile according to the 2000 census of 
 64.20  population; (ii) an international border; and (iii) more than 
 64.21  one school district within its boundaries, may levy for the net 
 64.22  operational costs of a swimming pool.  The levy may not exceed 
 64.23  the net actual costs of operation of the swimming pool for the 
 64.24  previous year.  Net actual costs are defined as operating costs 
 64.25  less any operating revenues and less any payments from other 
 64.26  local governmental units. 
 64.27     [EFFECTIVE DATE.] This section is effective for taxes 
 64.28  payable in 2002 and later. 
 64.29     Sec. 2.  [144F.01] [EMERGENCY MEDICAL SERVICES SPECIAL 
 64.30  TAXING DISTRICTS.] 
 64.31     Subdivision 1.  [POLITICAL SUBDIVISION DEFINED.] In this 
 64.32  section, "political subdivision" means a county, a statutory or 
 64.33  home rule charter city, or a township organized to provide town 
 64.34  government. 
 64.35     Subd. 2.  [WHO MAY ESTABLISH.] Two or more political 
 64.36  subdivisions, or parts of them, may establish by resolution of 
 65.1   their governing bodies a special taxing district for emergency 
 65.2   medical services.  The participating territory of a 
 65.3   participating political subdivision need not abut any other 
 65.4   participating territory to be in the special taxing district. 
 65.5      Subd. 3.  [BOARD.] The special taxing district under this 
 65.6   section is governed by a board made up initially of 
 65.7   representatives of each participating political subdivision in 
 65.8   the proportions set out in the establishing resolution, subject 
 65.9   to change as provided in the district's charter, if any, or in 
 65.10  the district's bylaws.  Each participant's representative serves 
 65.11  at the pleasure of that participant's governing body. 
 65.12     Subd. 4.  [PROPERTY TAX LEVY AUTHORITY.] The district's 
 65.13  board may levy a tax on the taxable real and personal property 
 65.14  in the district.  The ad valorem tax levy may not exceed 0.048 
 65.15  percent of the taxable market value of the district or $250,000, 
 65.16  whichever is less.  The proceeds of the levy must be used as 
 65.17  provided in subdivision 5.  The board shall certify the levy at 
 65.18  the times as provided under section 275.07.  The board shall 
 65.19  provide the county with whatever information is necessary to 
 65.20  identify the property that is located within the district.  If 
 65.21  the boundaries include a part of a parcel, the entire parcel 
 65.22  shall be included in the district.  The county auditors must 
 65.23  spread, collect, and distribute the proceeds of the tax at the 
 65.24  same time and in the same manner as provided by law for all 
 65.25  other property taxes. 
 65.26     Subd. 5.  [USE OF LEVY PROCEEDS.] The proceeds of property 
 65.27  taxes levied under this section must be used to support the 
 65.28  providing of out-of-hospital emergency medical services 
 65.29  including, but not limited to, first responder or rescue squads 
 65.30  recognized by the district, ambulance services licensed under 
 65.31  chapter 144E and recognized by the district, medical control 
 65.32  functions set out in chapter 144E, communications equipment and 
 65.33  systems, and programs of regional emergency medical services 
 65.34  authorized by regional boards described in section 144E.52. 
 65.35     Subd. 6.  [ADVISORY COMMITTEE.] A special taxing district 
 65.36  board under this section must have an advisory committee to 
 66.1   advise the board on issues involving emergency medical services 
 66.2   and EMS communications.  The committee's membership must be 
 66.3   comprised of representatives of first responders, ambulance 
 66.4   services, ambulance medical directors, and EMS communication 
 66.5   experts.  The advisory committee members serve at the pleasure 
 66.6   of the appointing board. 
 66.7      Subd. 7.  [POWERS.] (a) In addition to authority expressly 
 66.8   granted in this section, a special taxing district under this 
 66.9   section may exercise any power that may be exercised by any of 
 66.10  its participating political subdivisions, except that the board 
 66.11  may not incur debt.  The special taxing district may only use 
 66.12  the power to do what is necessary or reasonable to support the 
 66.13  services set out in subdivision 5. 
 66.14     (b) Notwithstanding paragraph (a), the district may only 
 66.15  levy the taxes authorized in this section. 
 66.16     Subd. 8.  [ADDITIONS AND WITHDRAWALS.] (a) Additional 
 66.17  eligible political subdivisions may be added to a special taxing 
 66.18  district under this section as provided by the board of the 
 66.19  district and agreed to in a resolution of the governing body of 
 66.20  the political subdivision proposed to be added. 
 66.21     (b) A political subdivision may withdraw from a special 
 66.22  taxing district under this section by resolution of its 
 66.23  governing body.  The political subdivision must notify the board 
 66.24  of the special taxing district of the withdrawal by providing a 
 66.25  copy of the resolution at least one year in advance of the 
 66.26  proposed withdrawal.  The taxable property of the withdrawing 
 66.27  member is subject to the property tax levy under subdivision 4 
 66.28  for the taxes payable year following the notice of the 
 66.29  withdrawal, unless the board and the withdrawing member agree 
 66.30  otherwise by action of their governing bodies. 
 66.31     (c) Notwithstanding subdivision 2, if the district is 
 66.32  comprised of only two political subdivisions and one of the 
 66.33  political subdivisions withdraws, the district can continue to 
 66.34  exist. 
 66.35     Subd. 9.  [DISSOLUTION.] If the special taxing district is 
 66.36  dissolved, the assets and liabilities may be assigned to a 
 67.1   successor entity, if any, or otherwise disposed of for public 
 67.2   purposes as provided by law.  
 67.3      [EFFECTIVE DATE.] This section is effective for taxes 
 67.4   levied in 2002, payable in 2003, through taxes levied in 2007, 
 67.5   payable in 2008. 
 67.6      Sec. 3.  Minnesota Statutes 2000, section 216B.2424, 
 67.7   subdivision 5, is amended to read: 
 67.8      Subd. 5.  [MANDATE.] (a) A public utility, as defined in 
 67.9   section 216B.02, subdivision 4, that operates a nuclear-powered 
 67.10  electric generating plant within this state must construct and 
 67.11  operate, purchase, or contract to construct and operate (1) by 
 67.12  December 31, 1998, 50 megawatts of electric energy installed 
 67.13  capacity generated by farm-grown closed-loop biomass scheduled 
 67.14  to be operational by December 31, 2001; and (2) by December 31, 
 67.15  1998, an additional 75 megawatts of installed capacity so 
 67.16  generated scheduled to be operational by December 31, 2002.  
 67.17     (b) Of the 125 megawatts of biomass electricity installed 
 67.18  capacity required under this subdivision, no more than 50 
 67.19  megawatts of this capacity may be provided by a facility that 
 67.20  uses poultry litter as its primary fuel source and any such 
 67.21  facility:  
 67.22     (1) need not use biomass that complies with the definition 
 67.23  in subdivision 1; 
 67.24     (2) must enter into a contract with the public utility for 
 67.25  such capacity, that has an average purchase price per megawatt 
 67.26  hour over the life of the contract that is equal to or less than 
 67.27  the average purchase price per megawatt hour over the life of 
 67.28  the contract in contracts approved by the public utilities 
 67.29  commission before April 1, 2000, to satisfy the mandate of this 
 67.30  section, and file that contract with the public utilities 
 67.31  commission prior to September 1, 2000; and 
 67.32     (3) such capacity must be scheduled to be operational by 
 67.33  December 31, 2002.  
 67.34     (c) Of the total 125 megawatts of biomass electric energy 
 67.35  installed capacity required under this section, no more than 75 
 67.36  megawatts may be provided by a single project.  
 68.1      (d) Of the 75 megawatts of biomass electric energy 
 68.2   installed capacity required under paragraph (a), clause (2), no 
 68.3   more than 25 megawatts of this capacity may be provided by a St. 
 68.4   Paul district heating and cooling system cogeneration facility 
 68.5   utilizing waste wood as a primary fuel source.  The St. Paul 
 68.6   district heating and cooling system cogeneration facility need 
 68.7   not use biomass that complies with the definition in subdivision 
 68.8   1.  
 68.9      (e) The public utility must accept and consider on an equal 
 68.10  basis with other biomass proposals: 
 68.11     (1) a proposal to satisfy the requirements of this section 
 68.12  that includes a project that exceeds the megawatt capacity 
 68.13  requirements of either paragraph (a), clause (1) or (2), and 
 68.14  that proposes to sell the excess capacity to the public utility 
 68.15  or to other purchasers; and 
 68.16     (2) a proposal for a new facility to satisfy more than ten 
 68.17  but not more than 20 megawatts of the electrical generation 
 68.18  requirements by a small business-sponsored independent power 
 68.19  producer facility to be located within the northern quarter of 
 68.20  the state, which means the area located north of Constitutional 
 68.21  Route No. 8 as described in section 161.114, subdivision 2, and 
 68.22  that utilizes biomass residue wood, sawdust, bark, chipped wood, 
 68.23  or brush to generate electricity.  A facility described in this 
 68.24  clause is not required to utilize biomass complying with the 
 68.25  definition in subdivision 1, but must have the capacity required 
 68.26  by this clause operational by December 31, 2002. 
 68.27     (e) (f) If a public utility files a contract with the 
 68.28  commission for electric energy installed capacity that uses 
 68.29  poultry litter as its primary fuel source, the commission must 
 68.30  do a preliminary review of the contract to determine if it meets 
 68.31  the purchase price criteria provided in paragraph (b), clause 
 68.32  (2), of this subdivision.  The commission shall perform its 
 68.33  review and advise the parties of its determination within 30 
 68.34  days of filing of such a contract by a public utility.  A public 
 68.35  utility may submit by September 1, 2000, a revised contract to 
 68.36  address the commission's preliminary determination.  
 69.1      (f) (g) The commission shall finally approve, modify, or 
 69.2   disapprove no later than July 1, 2001, all contracts submitted 
 69.3   by a public utility as of September 1, 2000, to meet the mandate 
 69.4   set forth in this subdivision.  
 69.5      (g) (h) If a public utility subject to this section 
 69.6   exercises an option to increase the generating capacity of a 
 69.7   project in a contract approved by the commission prior to April 
 69.8   25, 2000, to satisfy the mandate in this subdivision, the public 
 69.9   utility must notify the commission by September 1, 2000, that it 
 69.10  has exercised the option and include in the notice the amount of 
 69.11  additional megawatts to be generated under the option 
 69.12  exercised.  Any review by the commission of the project after 
 69.13  exercise of such an option shall be based on the same criteria 
 69.14  used to review the existing contract. 
 69.15     (i) A facility specified in this subdivision qualifies for 
 69.16  exemption from property taxation under section 272.02, 
 69.17  subdivision 43. 
 69.18     [EFFECTIVE DATE.] This section is effective the day 
 69.19  following final enactment. 
 69.20     Sec. 4.  Minnesota Statutes 2000, section 272.02, is 
 69.21  amended by adding a subdivision to read: 
 69.22     Subd. 47.  [POULTRY LITTER BIOMASS GENERATION FACILITY; 
 69.23  PERSONAL PROPERTY.] Notwithstanding subdivision 9, clause (a), 
 69.24  attached machinery and other personal property which is part of 
 69.25  an electrical generating facility that meets the requirements of 
 69.26  this subdivision is exempt.  At the time of construction, the 
 69.27  facility must: 
 69.28     (1) be designed to utilize poultry litter as a primary fuel 
 69.29  source; and 
 69.30     (2) be constructed for the purpose of generating power at 
 69.31  the facility that will be sold pursuant to a contract approved 
 69.32  by the public utilities commission in accordance with the 
 69.33  biomass mandate imposed under section 216B.2424. 
 69.34     Construction of the facility must be commenced after 
 69.35  January 1, 2000, and before December 31, 2002.  Property 
 69.36  eligible for this exemption does not include electric 
 70.1   transmission lines and interconnections or gas pipelines and 
 70.2   interconnections appurtenant to the property or the facility. 
 70.3      [EFFECTIVE DATE.] This section is effective for assessment 
 70.4   year 2001 and thereafter. 
 70.5      Sec. 5.  Minnesota Statutes 2000, section 272.02, is 
 70.6   amended by adding a subdivision to read: 
 70.7      Subd. 48.  [WASTE TIRE COGENERATION FACILITY; PERSONAL 
 70.8   PROPERTY.] Notwithstanding subdivision 9, clause (a), attached 
 70.9   machinery and other personal property which is part of an 
 70.10  electric generating facility that meets the requirements of this 
 70.11  subdivision is exempt.  At the time of construction, the 
 70.12  facility must: 
 70.13     (1) be designed to utilize waste tires as a primary fuel 
 70.14  source; and 
 70.15     (2) be a cogeneration electric generating facility of 15 to 
 70.16  25 megawatts of installed capacity. 
 70.17     Construction of the facility must be commenced after 
 70.18  January 1, 2000, and before January 1, 2004.  Property eligible 
 70.19  for this exemption does not include electric transmission lines 
 70.20  and interconnections or gas pipelines and interconnections 
 70.21  appurtenant to the property or the facility. 
 70.22     [EFFECTIVE DATE.] This section is effective for assessment 
 70.23  year 2001 and thereafter. 
 70.24     Sec. 6.  Minnesota Statutes 2000, section 272.02, is 
 70.25  amended by adding a subdivision to read: 
 70.26     Subd. 49.  [BIOMASS ELECTRICAL GENERATION FACILITY; 
 70.27  PERSONAL PROPERTY.] Notwithstanding subdivision 9, clause (a), 
 70.28  attached machinery and other personal property which is part of 
 70.29  an electrical generating facility that meets the requirements of 
 70.30  this subdivision is exempt.  At the time of construction, the 
 70.31  facility must: 
 70.32     (1) be designed to utilize biomass as established in 
 70.33  section 216B.2424 as a primary fuel source; and 
 70.34     (2) be constructed for the purpose of generating power at 
 70.35  the facility that will be sold pursuant to a contract approved 
 70.36  by the public utilities commission in accordance with the 
 71.1   biomass mandate imposed under section 216B.2424.  
 71.2      Construction of the facility must be commenced after 
 71.3   January 1, 2000, and before December 31, 2002.  Property 
 71.4   eligible for this exemption does not include electric 
 71.5   transmission lines and interconnections or gas pipelines and 
 71.6   interconnections appurtenant to the property or facility.  
 71.7      [EFFECTIVE DATE.] This section is effective for assessment 
 71.8   year 2001 and thereafter. 
 71.9      Sec. 7.  [272.028] [PERSONAL PROPERTY USED TO GENERATE 
 71.10  ELECTRICITY.] 
 71.11     Subdivision 1.  [NEW PLANT CONSTRUCTION AFTER JANUARY 1, 
 71.12  2001.] For a new generating plant or a new natural gas peaking 
 71.13  storage facility built and placed in service after January 1, 
 71.14  2001, personal property used to generate electric power or used 
 71.15  to store natural gas or similar fuels is exempt if an exemption 
 71.16  of generation personal property form, with an attached siting 
 71.17  agreement, signed by the utility and the host taxing authorities 
 71.18  is filed with the department of revenue.  The siting agreement 
 71.19  may include a plan to provide fees or compensation to the host 
 71.20  jurisdictions.  
 71.21     Subd. 2.  [EXISTING PLANT; INCREASE IN NAMEPLATE CAPACITY.] 
 71.22  For a plant existing or under construction on the day of final 
 71.23  enactment of this act, a partial exemption applies if (1) an 
 71.24  exemption of generation personal property form, with an attached 
 71.25  siting agreement, signed by the utility and the host taxing 
 71.26  authorities is filed with the department of revenue; (2) the 
 71.27  nameplate capacity of the plant is increased from that existing 
 71.28  on the day of final enactment of this act; and (3) the 
 71.29  construction has the effect of increasing the facility's 
 71.30  compliance with the new source performance standards and maximum 
 71.31  achievable control technology standards of the federal Clean Air 
 71.32  Act, title 42, United States Code, section 7401 et seq.  The 
 71.33  siting agreement may include a plan to provide fees or 
 71.34  compensation to the host jurisdictions.  This partial exemption 
 71.35  must be computed by taking the increase in megawatts over the 
 71.36  total megawatt nameplate capacity after construction is 
 72.1   complete, multiplied by the market value of all taxable tools, 
 72.2   implements, and machinery of the generating plant as determined 
 72.3   by the commissioner of revenue.  The resulting exemption is 
 72.4   effective beginning in the next assessment year. 
 72.5      Subd. 3.  [DEFINITION; APPLICABILITY.] For purposes of this 
 72.6   section, "personal property" means tools, implements, and 
 72.7   machinery of the generating plant.  The exemption under this 
 72.8   section does not apply to transformers, transmission lines, 
 72.9   distribution lines, or any other tools, implements, and 
 72.10  machinery that are part of an electric substation, wherever 
 72.11  located. 
 72.12     [EFFECTIVE DATE.] This section is effective the day 
 72.13  following final enactment. 
 72.14     Sec. 8.  Minnesota Statutes 2000, section 273.13, 
 72.15  subdivision 25, is amended to read: 
 72.16     Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
 72.17  estate containing four or more units and used or held for use by 
 72.18  the owner or by the tenants or lessees of the owner as a 
 72.19  residence for rental periods of 30 days or more.  Class 4a also 
 72.20  includes hospitals licensed under sections 144.50 to 144.56, 
 72.21  other than hospitals exempt under section 272.02, and contiguous 
 72.22  property used for hospital purposes, without regard to whether 
 72.23  the property has been platted or subdivided.  Class 4a property 
 72.24  in a city with a population of 5,000 or less, that is (1) 
 72.25  located outside of the metropolitan area, as defined in section 
 72.26  473.121, subdivision 2, or outside any county contiguous to the 
 72.27  metropolitan area, and (2) whose city boundary is at least 15 
 72.28  miles from the boundary of any city with a population greater 
 72.29  than 5,000 has a class rate of 2.15 percent of market value.  
 72.30  All other class 4a property has a class rate of 2.4 percent of 
 72.31  market value.  For purposes of this paragraph, population has 
 72.32  the same meaning given in section 477A.011, subdivision 3. 
 72.33     (b) Class 4b includes: 
 72.34     (1) residential real estate containing less than four units 
 72.35  that does not qualify as class 4bb, other than seasonal 
 72.36  residential, and recreational; 
 73.1      (2) manufactured homes not classified under any other 
 73.2   provision; 
 73.3      (3) a dwelling, garage, and surrounding one acre of 
 73.4   property on a nonhomestead farm classified under subdivision 23, 
 73.5   paragraph (b) containing two or three units; 
 73.6      (4) unimproved property that is classified residential as 
 73.7   determined under subdivision 33.  
 73.8      Class 4b property has a class rate of 1.65 percent of 
 73.9   market value.  
 73.10     (c) Class 4bb includes: 
 73.11     (1) nonhomestead residential real estate containing one 
 73.12  unit, other than seasonal residential, and recreational; and 
 73.13     (2) a single family dwelling, garage, and surrounding one 
 73.14  acre of property on a nonhomestead farm classified under 
 73.15  subdivision 23, paragraph (b). 
 73.16     Class 4bb has a class rate of 1.2 percent on the first 
 73.17  $76,000 of market value and a class rate of 1.65 percent of its 
 73.18  market value that exceeds $76,000. 
 73.19     Property that has been classified as seasonal recreational 
 73.20  residential property at any time during which it has been owned 
 73.21  by the current owner or spouse of the current owner does not 
 73.22  qualify for class 4bb. 
 73.23     (d) Class 4c property includes: 
 73.24     (1) except as provided in subdivision 22, paragraph (c), 
 73.25  real property devoted to temporary and seasonal residential 
 73.26  occupancy for recreation purposes, including real property 
 73.27  devoted to temporary and seasonal residential occupancy for 
 73.28  recreation purposes and not devoted to commercial purposes for 
 73.29  more than 250 days in the year preceding the year of 
 73.30  assessment.  For purposes of this clause, property is devoted to 
 73.31  a commercial purpose on a specific day if any portion of the 
 73.32  property is used for residential occupancy, and a fee is charged 
 73.33  for residential occupancy.  In order for a property to be 
 73.34  classified as class 4c, seasonal recreational residential for 
 73.35  commercial purposes, at least 40 percent of the annual gross 
 73.36  lodging receipts related to the property must be from business 
 74.1   conducted during 90 consecutive days and either (i) at least 60 
 74.2   percent of all paid bookings by lodging guests during the year 
 74.3   must be for periods of at least two consecutive nights; or (ii) 
 74.4   at least 20 percent of the annual gross receipts must be from 
 74.5   charges for rental of fish houses, boats and motors, 
 74.6   snowmobiles, downhill or cross-country ski equipment, or charges 
 74.7   for marina services, launch services, and guide services, or the 
 74.8   sale of bait and fishing tackle.  For purposes of this 
 74.9   determination, a paid booking of five or more nights shall be 
 74.10  counted as two bookings.  Class 4c also includes commercial use 
 74.11  real property used exclusively for recreational purposes in 
 74.12  conjunction with class 4c property devoted to temporary and 
 74.13  seasonal residential occupancy for recreational purposes, up to 
 74.14  a total of two acres, provided the property is not devoted to 
 74.15  commercial recreational use for more than 250 days in the year 
 74.16  preceding the year of assessment and is located within two miles 
 74.17  of the class 4c property with which it is used.  Class 4c 
 74.18  property classified in this clause also includes the remainder 
 74.19  of class 1c resorts provided that the entire property including 
 74.20  that portion of the property classified as class 1c also meets 
 74.21  the requirements for class 4c under this clause; otherwise the 
 74.22  entire property is classified as class 3.  Owners of real 
 74.23  property devoted to temporary and seasonal residential occupancy 
 74.24  for recreation purposes and all or a portion of which was 
 74.25  devoted to commercial purposes for not more than 250 days in the 
 74.26  year preceding the year of assessment desiring classification as 
 74.27  class 1c or 4c, must submit a declaration to the assessor 
 74.28  designating the cabins or units occupied for 250 days or less in 
 74.29  the year preceding the year of assessment by January 15 of the 
 74.30  assessment year.  Those cabins or units and a proportionate 
 74.31  share of the land on which they are located will be designated 
 74.32  class 1c or 4c as otherwise provided.  The remainder of the 
 74.33  cabins or units and a proportionate share of the land on which 
 74.34  they are located will be designated as class 3a.  The owner of 
 74.35  property desiring designation as class 1c or 4c property must 
 74.36  provide guest registers or other records demonstrating that the 
 75.1   units for which class 1c or 4c designation is sought were not 
 75.2   occupied for more than 250 days in the year preceding the 
 75.3   assessment if so requested.  The portion of a property operated 
 75.4   as a (1) restaurant, (2) bar, (3) gift shop, and (4) other 
 75.5   nonresidential facility operated on a commercial basis not 
 75.6   directly related to temporary and seasonal residential occupancy 
 75.7   for recreation purposes shall not qualify for class 1c or 4c; 
 75.8      (2) qualified property used as a golf course if: 
 75.9      (i) it is open to the public on a daily fee basis.  It may 
 75.10  charge membership fees or dues, but a membership fee may not be 
 75.11  required in order to use the property for golfing, and its green 
 75.12  fees for golfing must be comparable to green fees typically 
 75.13  charged by municipal courses; and 
 75.14     (ii) it meets the requirements of section 273.112, 
 75.15  subdivision 3, paragraph (d). 
 75.16     A structure used as a clubhouse, restaurant, or place of 
 75.17  refreshment in conjunction with the golf course is classified as 
 75.18  class 3a property; 
 75.19     (3) real property up to a maximum of one acre of land owned 
 75.20  by a nonprofit community service oriented organization; provided 
 75.21  that the property is not used for a revenue-producing activity 
 75.22  for more than six days in the calendar year preceding the year 
 75.23  of assessment and the property is not used for residential 
 75.24  purposes on either a temporary or permanent basis.  For purposes 
 75.25  of this clause, a "nonprofit community service oriented 
 75.26  organization" means any corporation, society, association, 
 75.27  foundation, or institution organized and operated exclusively 
 75.28  for charitable, religious, fraternal, civic, or educational 
 75.29  purposes, and which is exempt from federal income taxation 
 75.30  pursuant to section 501(c)(3), (10), or (19) of the Internal 
 75.31  Revenue Code of 1986, as amended through December 31, 1990.  For 
 75.32  purposes of this clause, "revenue-producing activities" shall 
 75.33  include but not be limited to property or that portion of the 
 75.34  property that is used as an on-sale intoxicating liquor or 3.2 
 75.35  percent malt liquor establishment licensed under chapter 340A, a 
 75.36  restaurant open to the public, bowling alley, a retail store, 
 76.1   gambling conducted by organizations licensed under chapter 349, 
 76.2   an insurance business, or office or other space leased or rented 
 76.3   to a lessee who conducts a for-profit enterprise on the 
 76.4   premises.  Any portion of the property which is used for 
 76.5   revenue-producing activities for more than six days in the 
 76.6   calendar year preceding the year of assessment shall be assessed 
 76.7   as class 3a.  The use of the property for social events open 
 76.8   exclusively to members and their guests for periods of less than 
 76.9   24 hours, when an admission is not charged nor any revenues are 
 76.10  received by the organization shall not be considered a 
 76.11  revenue-producing activity; 
 76.12     (4) post-secondary student housing of not more than one 
 76.13  acre of land that is owned by a nonprofit corporation organized 
 76.14  under chapter 317A and is used exclusively by a student 
 76.15  cooperative, sorority, or fraternity for on-campus housing or 
 76.16  housing located within two miles of the border of a college 
 76.17  campus; 
 76.18     (5) manufactured home parks as defined in section 327.14, 
 76.19  subdivision 3; 
 76.20     (6) real property that is actively and exclusively devoted 
 76.21  to indoor fitness, health, social, recreational, and related 
 76.22  uses, is owned and operated by a not-for-profit corporation, and 
 76.23  is located within the metropolitan area as defined in section 
 76.24  473.121, subdivision 2; and 
 76.25     (7) a leased or privately owned noncommercial aircraft 
 76.26  storage hangar not exempt under section 272.01, subdivision 2, 
 76.27  and the land on which it is located, provided that: 
 76.28     (i) the land is on an airport owned or operated by a city, 
 76.29  town, county, metropolitan airports commission, or group 
 76.30  thereof; and 
 76.31     (ii) the land lease, or any ordinance or signed agreement 
 76.32  restricting the use of the leased premise, prohibits commercial 
 76.33  activity performed at the hangar. 
 76.34     If a hangar classified under this clause is sold after June 
 76.35  30, 2000, a bill of sale must be filed by the new owner with the 
 76.36  assessor of the county where the property is located within 60 
 77.1   days of the sale; and 
 77.2      (8) property or a portion of a property that is being used 
 77.3   exclusively as a licensed child care provider facility under 
 77.4   Minnesota Rules, parts 9503.0005 to 9503.0170 (Rule 3). 
 77.5      Class 4c property has a class rate of 1.65 percent of 
 77.6   market value, except that (i) each parcel of seasonal 
 77.7   residential recreational property not used for commercial 
 77.8   purposes has the same class rates as class 4bb property, (ii) 
 77.9   manufactured home parks assessed under clause (5) have the same 
 77.10  class rate as class 4b property, and (iii) property described in 
 77.11  paragraph (d), clause (4), has the same class rate as the rate 
 77.12  applicable to the first tier of class 4bb nonhomestead 
 77.13  residential real estate under paragraph (c).  
 77.14     (e) Class 4d property is qualifying low-income rental 
 77.15  housing certified to the assessor by the housing finance agency 
 77.16  under sections 273.126 and 462A.071.  Class 4d includes land in 
 77.17  proportion to the total market value of the building that is 
 77.18  qualifying low-income rental housing.  For all properties 
 77.19  qualifying as class 4d, the market value determined by the 
 77.20  assessor must be based on the normal approach to value using 
 77.21  normal unrestricted rents. 
 77.22     Class 4d property has a class rate of one percent of market 
 77.23  value.  
 77.24     [EFFECTIVE DATE.] This section is effective for taxes 
 77.25  payable in 2002 and thereafter. 
 77.26     Sec. 9.  Minnesota Statutes 2000, section 477A.011, 
 77.27  subdivision 36, is amended to read: 
 77.28     Subd. 36.  [CITY AID BASE.] (a) Except as provided in 
 77.29  paragraphs (b) to (n) (o), "city aid base" means, for each city, 
 77.30  the sum of the local government aid and equalization aid it was 
 77.31  originally certified to receive in calendar year 1993 under 
 77.32  Minnesota Statutes 1992, section 477A.013, subdivisions 3 and 5, 
 77.33  and the amount of disparity reduction aid it received in 
 77.34  calendar year 1993 under Minnesota Statutes 1992, section 
 77.35  273.1398, subdivision 3. 
 77.36     (b) For aids payable in 1996 and thereafter, a city that in 
 78.1   1992 or 1993 transferred an amount from governmental funds to 
 78.2   its sewer and water fund, which amount exceeded its net levy for 
 78.3   taxes payable in the year in which the transfer occurred, has a 
 78.4   "city aid base" equal to the sum of (i) its city aid base, as 
 78.5   calculated under paragraph (a), and (ii) one-half of the 
 78.6   difference between its city aid distribution under section 
 78.7   477A.013, subdivision 9, for aids payable in 1995 and its city 
 78.8   aid base for aids payable in 1995. 
 78.9      (c) The city aid base for any city with a population less 
 78.10  than 500 is increased by $40,000 for aids payable in calendar 
 78.11  year 1995 and thereafter, and the maximum amount of total aid it 
 78.12  may receive under section 477A.013, subdivision 9, paragraph 
 78.13  (c), is also increased by $40,000 for aids payable in calendar 
 78.14  year 1995 only, provided that: 
 78.15     (i) the average total tax capacity rate for taxes payable 
 78.16  in 1995 exceeds 200 percent; 
 78.17     (ii) the city portion of the tax capacity rate exceeds 100 
 78.18  percent; and 
 78.19     (iii) its city aid base is less than $60 per capita. 
 78.20     (d) The city aid base for a city is increased by $20,000 in 
 78.21  1998 and thereafter and the maximum amount of total aid it may 
 78.22  receive under section 477A.013, subdivision 9, paragraph (c), is 
 78.23  also increased by $20,000 in calendar year 1998 only, provided 
 78.24  that: 
 78.25     (i) the city has a population in 1994 of 2,500 or more; 
 78.26     (ii) the city is located in a county, outside of the 
 78.27  metropolitan area, which contains a city of the first class; 
 78.28     (iii) the city's net tax capacity used in calculating its 
 78.29  1996 aid under section 477A.013 is less than $400 per capita; 
 78.30  and 
 78.31     (iv) at least four percent of the total net tax capacity, 
 78.32  for taxes payable in 1996, of property located in the city is 
 78.33  classified as railroad property. 
 78.34     (e) The city aid base for a city is increased by $200,000 
 78.35  in 1999 and thereafter and the maximum amount of total aid it 
 78.36  may receive under section 477A.013, subdivision 9, paragraph 
 79.1   (c), is also increased by $200,000 in calendar year 1999 only, 
 79.2   provided that: 
 79.3      (i) the city was incorporated as a statutory city after 
 79.4   December 1, 1993; 
 79.5      (ii) its city aid base does not exceed $5,600; and 
 79.6      (iii) the city had a population in 1996 of 5,000 or more. 
 79.7      (f) The city aid base for a city is increased by $450,000 
 79.8   in 1999 to 2008 and the maximum amount of total aid it may 
 79.9   receive under section 477A.013, subdivision 9, paragraph (c), is 
 79.10  also increased by $450,000 in calendar year 1999 only, provided 
 79.11  that: 
 79.12     (i) the city had a population in 1996 of at least 50,000; 
 79.13     (ii) its population had increased by at least 40 percent in 
 79.14  the ten-year period ending in 1996; and 
 79.15     (iii) its city's net tax capacity for aids payable in 1998 
 79.16  is less than $700 per capita. 
 79.17     (g) Beginning in 2002 2004, the city aid base for a city is 
 79.18  equal to the sum of its city aid base in 2001 2003 and the 
 79.19  amount of additional aid it was certified to receive under 
 79.20  section 477A.06 in 2001 2003.  For 2002 2004 only, the maximum 
 79.21  amount of total aid a city may receive under section 477A.013, 
 79.22  subdivision 9, paragraph (c), is also increased by the amount it 
 79.23  was certified to receive under section 477A.06 in 2001 2003. 
 79.24     (h) The city aid base for a city is increased by $150,000 
 79.25  for aids payable in 2000 and thereafter, and the maximum amount 
 79.26  of total aid it may receive under section 477A.013, subdivision 
 79.27  9, paragraph (c), is also increased by $150,000 in calendar year 
 79.28  2000 only, provided that: 
 79.29     (1) the city has a population that is greater than 1,000 
 79.30  and less than 2,500; 
 79.31     (2) its commercial and industrial percentage for aids 
 79.32  payable in 1999 is greater than 45 percent; and 
 79.33     (3) the total market value of all commercial and industrial 
 79.34  property in the city for assessment year 1999 is at least 15 
 79.35  percent less than the total market value of all commercial and 
 79.36  industrial property in the city for assessment year 1998. 
 80.1      (i) The city aid base for a city is increased by $200,000 
 80.2   in 2000 and thereafter, and the maximum amount of total aid it 
 80.3   may receive under section 477A.013, subdivision 9, paragraph 
 80.4   (c), is also increased by $200,000 in calendar year 2000 only, 
 80.5   provided that: 
 80.6      (1) the city had a population in 1997 of 2,500 or more; 
 80.7      (2) the net tax capacity of the city used in calculating 
 80.8   its 1999 aid under section 477A.013 is less than $650 per 
 80.9   capita; 
 80.10     (3) the pre-1940 housing percentage of the city used in 
 80.11  calculating 1999 aid under section 477A.013 is greater than 12 
 80.12  percent; 
 80.13     (4) the 1999 local government aid of the city under section 
 80.14  477A.013 is less than 20 percent of the amount that the formula 
 80.15  aid of the city would have been if the need increase percentage 
 80.16  was 100 percent; and 
 80.17     (5) the city aid base of the city used in calculating aid 
 80.18  under section 477A.013 is less than $7 per capita. 
 80.19     (j) The city aid base for a city is increased by $225,000 
 80.20  in calendar years 2000 to 2002 and the maximum amount of total 
 80.21  aid it may receive under section 477A.013, subdivision 9, 
 80.22  paragraph (c), is also increased by $225,000 in calendar year 
 80.23  2000 only, provided that: 
 80.24     (1) the city had a population of at least 5,000; 
 80.25     (2) its population had increased by at least 50 percent in 
 80.26  the ten-year period ending in 1997; 
 80.27     (3) the city is located outside of the Minneapolis-St. Paul 
 80.28  metropolitan statistical area as defined by the United States 
 80.29  Bureau of the Census; and 
 80.30     (4) the city received less than $30 per capita in aid under 
 80.31  section 477A.013, subdivision 9, for aids payable in 1999. 
 80.32     (k) The city aid base for a city is increased by $102,000 
 80.33  in 2000 and thereafter, and the maximum amount of total aid it 
 80.34  may receive under section 477A.013, subdivision 9, paragraph 
 80.35  (c), is also increased by $102,000 in calendar year 2000 only, 
 80.36  provided that: 
 81.1      (1) the city has a population in 1997 of 2,000 or more; 
 81.2      (2) the net tax capacity of the city used in calculating 
 81.3   its 1999 aid under section 477A.013 is less than $455 per 
 81.4   capita; 
 81.5      (3) the net levy of the city used in calculating 1999 aid 
 81.6   under section 477A.013 is greater than $195 per capita; and 
 81.7      (4) the 1999 local government aid of the city under section 
 81.8   477A.013 is less than 38 percent of the amount that the formula 
 81.9   aid of the city would have been if the need increase percentage 
 81.10  was 100 percent. 
 81.11     (l) The city aid base for a city is increased by $32,000 in 
 81.12  2001 and thereafter, and the maximum amount of total aid it may 
 81.13  receive under section 477A.013, subdivision 9, paragraph (c), is 
 81.14  also increased by $32,000 in calendar year 2001 only, provided 
 81.15  that: 
 81.16     (1) the city has a population in 1998 that is greater than 
 81.17  200 but less than 500; 
 81.18     (2) the city's revenue need used in calculating aids 
 81.19  payable in 2000 was greater than $200 per capita; 
 81.20     (3) the city net tax capacity for the city used in 
 81.21  calculating aids available in 2000 was equal to or less than 
 81.22  $200 per capita; 
 81.23     (4) the city aid base of the city used in calculating aid 
 81.24  under section 477A.013 is less than $65 per capita; and 
 81.25     (5) the city's formula aid for aids payable in 2000 was 
 81.26  greater than zero. 
 81.27     (m) The city aid base for a city is increased by $7,200 in 
 81.28  2001 and thereafter, and the maximum amount of total aid it may 
 81.29  receive under section 477A.013, subdivision 9, paragraph (c), is 
 81.30  also increased by $7,200 in calendar year 2001 only, provided 
 81.31  that: 
 81.32     (1) the city had a population in 1998 that is greater than 
 81.33  200 but less than 500; 
 81.34     (2) the city's commercial industrial percentage used in 
 81.35  calculating aids payable in 2000 was less than ten percent; 
 81.36     (3) more than 25 percent of the city's population was 60 
 82.1   years old or older according to the 1990 census; 
 82.2      (4) the city aid base of the city used in calculating aid 
 82.3   under section 477A.013 is less than $15 per capita; and 
 82.4      (5) the city's formula aid for aids payable in 2000 was 
 82.5   greater than zero. 
 82.6      (n) The city aid base for a city is increased by $45,000 in 
 82.7   2001 and thereafter, and the maximum amount of total aid it may 
 82.8   receive under section 477A.013, subdivision 9, paragraph (c), is 
 82.9   also increased by $45,000 in calendar year 2001 only, provided 
 82.10  that: 
 82.11     (1) the net tax capacity of the city used in calculating 
 82.12  its 2000 aid under section 477A.013 is less than $810 per 
 82.13  capita; 
 82.14     (2) the population of the city declined more than two 
 82.15  percent between 1988 and 1998; 
 82.16     (3) the net levy of the city used in calculating 2000 aid 
 82.17  under section 477A.013 is greater than $240 per capita; and 
 82.18     (4) the city received less than $36 per capita in aid under 
 82.19  section 477A.013, subdivision 9, for aids payable in 2000. 
 82.20     (o) The city aid base for a city is increased by $150,000 
 82.21  in calendar years 2002 to 2011 and the maximum amount of total 
 82.22  aid it may receive under section 477A.013, subdivision 9, 
 82.23  paragraph (c), is also increased by $150,000 in calendar year 
 82.24  2002 only, provided that: 
 82.25     (1) the city had a population of at least 3,000 but no more 
 82.26  than 4,000 in 1999; 
 82.27     (2) its home county is located within the seven-county 
 82.28  metropolitan area; 
 82.29     (3) its pre-1940 housing percentage is less than 15 
 82.30  percent; and 
 82.31     (4) its city net tax capacity per capita for taxes payable 
 82.32  in 2000 is less than $900 per capita. 
 82.33     [EFFECTIVE DATE.] This section is effective beginning with 
 82.34  aids payable in 2002. 
 82.35     Sec. 10.  Minnesota Statutes 2000, section 477A.12, is 
 82.36  amended to read: 
 83.1      477A.12 [ANNUAL APPROPRIATIONS; LANDS ELIGIBLE; 
 83.2   CERTIFICATION OF ACREAGE.] 
 83.3      Subdivision 1.  [TYPES OF LAND; PAYMENTS.] (a) As an offset 
 83.4   for expenses incurred by counties and towns in support of 
 83.5   natural resources lands, the following amounts are annually 
 83.6   appropriated to the commissioner of natural resources from the 
 83.7   general fund for transfer to the commissioner of revenue.  The 
 83.8   commissioner of revenue shall pay the transferred funds to 
 83.9   counties as required by sections 477A.11 to 477A.145.  The 
 83.10  amounts are: 
 83.11     (1) for acquired natural resources land, $3, as adjusted 
 83.12  for inflation under section 477A.145, multiplied by the total 
 83.13  number of acres of acquired natural resources land or, at the 
 83.14  county's option three-fourths of one percent of the appraised 
 83.15  value of all acquired natural resources land in the county, 
 83.16  whichever is greater; 
 83.17     (2) 75 cents, as adjusted for inflation under section 
 83.18  477A.145, multiplied by the number of acres of 
 83.19  county-administered other natural resources land; and 
 83.20     (3) 37.5 cents, as adjusted for inflation under section 
 83.21  477A.145, multiplied by the number of acres of 
 83.22  commissioner-administered other natural resources land located 
 83.23  in each county as of July 1 of each year prior to the payment 
 83.24  year. 
 83.25     (b) The amount determined under paragraph (a), clause (1), 
 83.26  is payable for land that is acquired from a private owner and 
 83.27  owned by the department of transportation for the purpose of 
 83.28  replacing wetland losses caused by transportation projects, but 
 83.29  only if the county contains more than 500 acres of such land at 
 83.30  the time the certification is made under subdivision 2. 
 83.31     Subd. 2.  [PROCEDURE.] Lands for which payments in lieu are 
 83.32  made pursuant to section 97A.061, subdivision 3, and Laws 1973, 
 83.33  chapter 567, shall not be eligible for payments under this 
 83.34  section.  Each county auditor shall certify to the department of 
 83.35  natural resources during July of each year prior to the payment 
 83.36  year the number of acres of county-administered other natural 
 84.1   resources land within the county.  The department of natural 
 84.2   resources may, in addition to the certification of acreage, 
 84.3   require descriptive lists of land so certified.  The 
 84.4   commissioner of natural resources shall determine and certify to 
 84.5   the commissioner of revenue by March 1 of the payment year:  
 84.6      (1) the number of acres and most recent appraised value of 
 84.7   acquired natural resources land within each county; 
 84.8      (2) the number of acres of commissioner-administered 
 84.9   natural resources land within each county; and 
 84.10     (3) the number of acres of county-administered other 
 84.11  natural resources land within each county, based on the reports 
 84.12  filed by each county auditor with the commissioner of natural 
 84.13  resources. 
 84.14     The commissioner of transportation shall determine and 
 84.15  certify to the commissioner of revenue by March 1 of the payment 
 84.16  year the number of acres of land and the appraised value of the 
 84.17  land described in subdivision 1, paragraph (b), but only if it 
 84.18  exceeds 500 acres. 
 84.19     The commissioner of revenue shall determine the 
 84.20  distributions provided for in this section using the number of 
 84.21  acres and appraised values certified by the commissioner of 
 84.22  natural resources and the commissioner of transportation by 
 84.23  March 1 of the payment year. 
 84.24     (c) Subd 3.  [DETERMINATION OF APPRAISED VALUE.] For the 
 84.25  purposes of this section, the appraised value of acquired 
 84.26  natural resources land is the purchase price for the first five 
 84.27  years after acquisition.  The appraised value of acquired 
 84.28  natural resources land received as a donation is the value 
 84.29  determined for the commissioner of natural resources by a 
 84.30  licensed appraiser, or the county assessor's estimated market 
 84.31  value if no appraisal is done.  The appraised value must be 
 84.32  determined by the county assessor every five years after the 
 84.33  land is acquired. 
 84.34     [EFFECTIVE DATE.] This section is effective for payments in 
 84.35  2002 and thereafter. 
 84.36     Sec. 11.  Minnesota Statutes 2000, section 477A.14, is 
 85.1   amended to read: 
 85.2      477A.14 [USE OF FUNDS.] 
 85.3      Except as provided in section 97A.061, subdivision 5, 40 
 85.4   percent of the total payment to the county shall be deposited in 
 85.5   the county general revenue fund to be used to provide property 
 85.6   tax levy reduction.  The remainder shall be distributed by the 
 85.7   county in the following priority:  
 85.8      (a) 37.5 cents, as adjusted for inflation under section 
 85.9   477A.145, for each acre of county-administered other natural 
 85.10  resources land shall be deposited in a resource development fund 
 85.11  to be created within the county treasury for use in resource 
 85.12  development, forest management, game and fish habitat 
 85.13  improvement, and recreational development and maintenance of 
 85.14  county-administered other natural resources land.  Any county 
 85.15  receiving less than $5,000 annually for the resource development 
 85.16  fund may elect to deposit that amount in the county general 
 85.17  revenue fund; 
 85.18     (b) From the funds remaining, within 30 days of receipt of 
 85.19  the payment to the county, the county treasurer shall pay each 
 85.20  organized township 30 cents, as adjusted for inflation under 
 85.21  section 477A.145, for each acre of acquired natural resources 
 85.22  land and each acre of land described in section 477A.12, 
 85.23  subdivision 1, paragraph (b), and 7.5 cents, as adjusted for 
 85.24  inflation under section 477A.145, for each acre of other natural 
 85.25  resources land located within its boundaries.  Payments for 
 85.26  natural resources lands not located in an organized township 
 85.27  shall be deposited in the county general revenue fund.  Payments 
 85.28  to counties and townships pursuant to this paragraph shall be 
 85.29  used to provide property tax levy reduction, except that of the 
 85.30  payments for natural resources lands not located in an organized 
 85.31  township, the county may allocate the amount determined to be 
 85.32  necessary for maintenance of roads in unorganized townships.  
 85.33  Provided that, if the total payment to the county pursuant to 
 85.34  section 477A.12 is not sufficient to fully fund the distribution 
 85.35  provided for in this clause, the amount available shall be 
 85.36  distributed to each township and the county general revenue fund 
 86.1   on a pro rata basis; and 
 86.2      (c) Any remaining funds shall be deposited in the county 
 86.3   general revenue fund.  Provided that, if the distribution to the 
 86.4   county general revenue fund exceeds $35,000, the excess shall be 
 86.5   used to provide property tax levy reduction. 
 86.6      [EFFECTIVE DATE.] This section is effective for payments in 
 86.7   2002 and thereafter. 
 86.8      Sec. 12.  [CONVEYANCE OF TAX-FORFEITED LAND; DAKOTA 
 86.9   COUNTY.] 
 86.10     (a) If special school district No. 6 conveys the land 
 86.11  described in paragraph (c) to the state according to Minnesota 
 86.12  Statutes, section 282.01, subdivision 1d, then, notwithstanding 
 86.13  any other provision of Minnesota Statutes, chapter 282, the 
 86.14  commissioner of revenue shall reconvey the land described in 
 86.15  paragraph (c) to special school district No. 6 for no 
 86.16  consideration.  
 86.17     (b) The conveyance must be in a form approved by the 
 86.18  attorney general.  Notwithstanding Minnesota Statutes, chapter 
 86.19  282, or other law to the contrary, special school district No. 6 
 86.20  may use or sell the land for other than a public use.  
 86.21  Notwithstanding Minnesota Statutes, chapter 282, or other law to 
 86.22  the contrary, the state shall not retain a reversionary interest 
 86.23  and shall convey the land free of the trust in favor of the 
 86.24  taxing district. 
 86.25     (c) The land to be conveyed is in the city of South St. 
 86.26  Paul, Dakota county, and is described as:  
 86.27     (1) Lots 4, 5, 6, and 7, Block 1, Lookout Park Addition; 
 86.28     (2) Lots 25 and 26, Block 1, Lookout Park Addition; 
 86.29     (3) Lots 11, 12, 13, 14, 15, 16, 17, 18, 19, and 20, Block 
 86.30  2, Lookout Park Addition; 
 86.31     (4) Lots 1, 2, 3, 4, and 5, Block 1, Bryants First Addition 
 86.32  to the city of South St. Paul; and 
 86.33     (5) Lot 21, Block 1, Bryants First Addition to the city of 
 86.34  South St. Paul, together with that part of the vacated alley and 
 86.35  vacated Stanley Place accruing thereto. 
 86.36     [EFFECTIVE DATE.] This section is effective the day 
 87.1   following final enactment. 
 87.2      Sec. 13.  [INDEPENDENT SCHOOL DISTRICT NO. 319, 
 87.3   NASHWAUK-KEEWATIN, ADDITIONAL LEVY.] 
 87.4      In addition to other levies, independent school district 
 87.5   No. 319, Nashwauk-Keewatin, may levy an amount up to $25,000 
 87.6   each year to finance the Nashwauk School-Community Library and 
 87.7   Community Service Project. 
 87.8      [EFFECTIVE DATE.] This section is effective July 1, 2001. 
 87.9      Sec. 14.  [PROPERTY TAX ABATEMENTS; PROPERTY DAMAGED BY 
 87.10  TORNADO; YELLOW MEDICINE AND CHIPPEWA COUNTIES.] 
 87.11     Subdivision 1.  [AUTHORIZATION.] Notwithstanding the 
 87.12  requirements of Minnesota Statutes, section 375.192, a city 
 87.13  council by resolution may request the county board of a 
 87.14  qualified county to grant abatements on eligible property for 
 87.15  taxes payable in 2001 as provided in this section.  Up to 50 
 87.16  percent of the taxes payable in 2001 on an eligible property 
 87.17  that does not qualify for reimbursement under Minnesota 
 87.18  Statutes, section 273.123, subdivision 4, may be abated.  The 
 87.19  owner of the eligible property is not required to apply for the 
 87.20  abatement. 
 87.21     Subd. 2.  [DEFINITIONS.] (a) As used in this section, the 
 87.22  terms defined in this subdivision have the meanings given them. 
 87.23     (b) "Qualified county" means any county in the area added 
 87.24  to the Presidential Declaration of Major Disaster, DR1333, by 
 87.25  amendment number 5 dated July 28, 2000, and amendment number 6 
 87.26  dated August 14, 2000. 
 87.27     (c) "Eligible property" means a parcel of taxable property 
 87.28  located in a qualified county that contains a structure that has 
 87.29  been determined by the assessor to have lost over 50 percent of 
 87.30  its estimated market value due to wind damage.  In the case of 
 87.31  agricultural property, the abatement is limited to the taxes on 
 87.32  the parcel attributable to the value of the house, garage, and 
 87.33  surrounding one acre, if the house has lost over 50 percent of 
 87.34  its estimated market value; and the tax attributable to the 
 87.35  value of any farm buildings and structures that have lost over 
 87.36  50 percent of their estimated market value. 
 88.1      Subd. 3.  [ASSESSORS' DUTIES.] As soon as practicable, 
 88.2   local and county assessors in qualified counties shall notify 
 88.3   the county board and property owners of parcels of eligible 
 88.4   property. 
 88.5      Subd. 4.  [APPROPRIATION.] $100,000 is appropriated to the 
 88.6   commissioner of revenue for fiscal year 2002 to be apportioned 
 88.7   among the counties in amendment number 5 and amendment number 6 
 88.8   to the Presidential Declaration of Major Disaster, DR1333, to 
 88.9   provide reimbursement for abatements granted under this section 
 88.10  for taxes payable in 2001 to properties damaged from tornadoes 
 88.11  on July 25, 2000.  The apportionment shall be based upon the 
 88.12  amount of disaster-related market value loss in each county.  
 88.13  Counties must be reimbursed only for property taxes that were 
 88.14  actually abated, not to exceed each county's apportioned amount. 
 88.15                             ARTICLE 5  
 88.16                            INCOME TAXES 
 88.17     Section 1.  Minnesota Statutes 2000, section 290.01, 
 88.18  subdivision 19b, is amended to read: 
 88.19     Subd. 19b.  [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For 
 88.20  individuals, estates, and trusts, there shall be subtracted from 
 88.21  federal taxable income: 
 88.22     (1) interest income on obligations of any authority, 
 88.23  commission, or instrumentality of the United States to the 
 88.24  extent includable in taxable income for federal income tax 
 88.25  purposes but exempt from state income tax under the laws of the 
 88.26  United States; 
 88.27     (2) if included in federal taxable income, the amount of 
 88.28  any overpayment of income tax to Minnesota or to any other 
 88.29  state, for any previous taxable year, whether the amount is 
 88.30  received as a refund or as a credit to another taxable year's 
 88.31  income tax liability; 
 88.32     (3) the amount paid to others, less the credit allowed 
 88.33  under section 290.0674, not to exceed $1,625 for each qualifying 
 88.34  child in grades kindergarten to 6 and $2,500 for each qualifying 
 88.35  child in grades 7 to 12, for tuition, textbooks, and 
 88.36  transportation of each qualifying child in attending an 
 89.1   elementary or secondary school situated in Minnesota, North 
 89.2   Dakota, South Dakota, Iowa, or Wisconsin, wherein a resident of 
 89.3   this state may legally fulfill the state's compulsory attendance 
 89.4   laws, which is not operated for profit, and which adheres to the 
 89.5   provisions of the Civil Rights Act of 1964 and chapter 363.  For 
 89.6   the purposes of this clause, "tuition" includes fees or tuition 
 89.7   as defined in section 290.0674, subdivision 1, clause (1).  As 
 89.8   used in this clause, "textbooks" includes books and other 
 89.9   instructional materials and equipment used in elementary and 
 89.10  secondary schools in teaching only those subjects legally and 
 89.11  commonly taught in public elementary and secondary schools in 
 89.12  this state.  Equipment expenses qualifying for deduction 
 89.13  includes expenses as defined and limited in section 290.0674, 
 89.14  subdivision 1, clause (3).  "Textbooks" does not include 
 89.15  instructional books and materials used in the teaching of 
 89.16  religious tenets, doctrines, or worship, the purpose of which is 
 89.17  to instill such tenets, doctrines, or worship, nor does it 
 89.18  include books or materials for, or transportation to, 
 89.19  extracurricular activities including sporting events, musical or 
 89.20  dramatic events, speech activities, driver's education, or 
 89.21  similar programs.  For purposes of the subtraction provided by 
 89.22  this clause, "qualifying child" has the meaning given in section 
 89.23  32(c)(3) of the Internal Revenue Code; 
 89.24     (4) contributions made in taxable years beginning after 
 89.25  December 31, 1981, and before January 1, 1985, to a qualified 
 89.26  governmental pension plan, an individual retirement account, 
 89.27  simplified employee pension, or qualified plan covering a 
 89.28  self-employed person that were included in Minnesota gross 
 89.29  income in the taxable year for which the contributions were made 
 89.30  but were deducted or were not included in the computation of 
 89.31  federal adjusted gross income, less any amount allowed to be 
 89.32  subtracted as a distribution under this subdivision or a 
 89.33  predecessor provision in taxable years that began before January 
 89.34  1, 2000.  This subtraction applies only for taxable years 
 89.35  beginning after December 31, 1999, and before January 1, 2001.  
 89.36  If an individual's subtraction under this clause exceeds the 
 90.1   individual's taxable income, the excess may be carried forward 
 90.2   to taxable years beginning after December 31, 2000, and before 
 90.3   January 1, 2002; 
 90.4      (5) income as provided under section 290.0802; 
 90.5      (6) the amount of unrecovered accelerated cost recovery 
 90.6   system deductions allowed under subdivision 19g; 
 90.7      (7) to the extent included in federal adjusted gross 
 90.8   income, income realized on disposition of property exempt from 
 90.9   tax under section 290.491; 
 90.10     (8) to the extent not deducted in determining federal 
 90.11  taxable income or used to claim the long-term care insurance 
 90.12  credit under section 290.0672, the amount paid for health 
 90.13  insurance of self-employed individuals as determined under 
 90.14  section 162(l) of the Internal Revenue Code, except that the 
 90.15  percent limit does not apply.  If the individual deducted 
 90.16  insurance payments under section 213 of the Internal Revenue 
 90.17  Code of 1986, the subtraction under this clause must be reduced 
 90.18  by the lesser of: 
 90.19     (i) the total itemized deductions allowed under section 
 90.20  63(d) of the Internal Revenue Code, less state, local, and 
 90.21  foreign income taxes deductible under section 164 of the 
 90.22  Internal Revenue Code and the standard deduction under section 
 90.23  63(c) of the Internal Revenue Code; or 
 90.24     (ii) the lesser of (A) the amount of insurance qualifying 
 90.25  as "medical care" under section 213(d) of the Internal Revenue 
 90.26  Code to the extent not deducted under section 162(1) of the 
 90.27  Internal Revenue Code or excluded from income or (B) the total 
 90.28  amount deductible for medical care under section 213(a); 
 90.29     (9) the exemption amount allowed under Laws 1995, chapter 
 90.30  255, article 3, section 2, subdivision 3; 
 90.31     (10) to the extent included in federal taxable income, 
 90.32  postservice benefits for youth community service under section 
 90.33  124D.42 for volunteer service under United States Code, title 
 90.34  42, sections 12601 to 12604; 
 90.35     (11) to the extent not deducted in determining federal 
 90.36  taxable income by an individual who does not itemize deductions 
 91.1   for federal income tax purposes for the taxable year, an amount 
 91.2   equal to 50 percent of the excess of charitable contributions 
 91.3   allowable as a deduction for the taxable year under section 
 91.4   170(a) of the Internal Revenue Code over $500; 
 91.5      (12) to the extent included in federal taxable income, 
 91.6   holocaust victims' settlement payments for any injury incurred 
 91.7   as a result of the holocaust, if received by an individual who 
 91.8   was persecuted for racial or religious reasons by Nazi Germany 
 91.9   or any other Axis regime or an heir of such a person; and 
 91.10     (13) for taxable years beginning before January 1, 2008, 
 91.11  the amount of the federal small ethanol producer credit allowed 
 91.12  under section 40(a)(3) of the Internal Revenue Code which is 
 91.13  included in gross income under section 87 of the Internal 
 91.14  Revenue Code.; and 
 91.15     (12) to the extent included in federal taxable income, the 
 91.16  compensation received for active duty in the armed forces of the 
 91.17  United States or the United Nations for personal services wholly 
 91.18  performed outside of the state of Minnesota.  
 91.19     [EFFECTIVE DATE.] This section is effective for taxable 
 91.20  years beginning after December 31, 2000. 
 91.21     Sec. 2.  Minnesota Statutes 2000, section 290.067, 
 91.22  subdivision 1, is amended to read: 
 91.23     Subdivision 1.  [AMOUNT OF CREDIT.] (a) A taxpayer may take 
 91.24  as a credit against the tax due from the taxpayer and a spouse, 
 91.25  if any, under this chapter an amount equal to the dependent care 
 91.26  credit for which the taxpayer is eligible pursuant to the 
 91.27  provisions of section 21 of the Internal Revenue Code subject to 
 91.28  the limitations provided in subdivision 2 except that in 
 91.29  determining whether the child qualified as a dependent, income 
 91.30  received as a Minnesota family investment program grant or 
 91.31  allowance to or on behalf of the child must not be taken into 
 91.32  account in determining whether the child received more than half 
 91.33  of the child's support from the taxpayer, and the provisions of 
 91.34  section 32(b)(1)(D) of the Internal Revenue Code do not apply. 
 91.35     (b) If a child who has not attained the age of six years at 
 91.36  the close of the taxable year is cared for at a licensed family 
 92.1   day care home operated by the child's parent, the taxpayer is 
 92.2   deemed to have paid employment-related expenses.  If the child 
 92.3   is 16 months old or younger at the close of the taxable year, 
 92.4   the amount of expenses deemed to have been paid equals the 
 92.5   maximum limit for one qualified individual under section 21(c) 
 92.6   and (d) of the Internal Revenue Code.  If the child is older 
 92.7   than 16 months of age but has not attained the age of six years 
 92.8   at the close of the taxable year, the amount of expenses deemed 
 92.9   to have been paid equals the amount the licensee would charge 
 92.10  for the care of a child of the same age for the same number of 
 92.11  hours of care.  
 92.12     (c) If a married couple: 
 92.13     (1) has a child who has not attained the age of one year at 
 92.14  the close of the taxable year; 
 92.15     (2) files a joint tax return for the taxable year; and 
 92.16     (3) does not participate in a dependent care assistance 
 92.17  program as defined in section 129 of the Internal Revenue Code, 
 92.18  in lieu of the actual employment related expenses paid for that 
 92.19  child under paragraph (a) or the deemed amount under paragraph 
 92.20  (b), the lesser of (i) the combined earned income of the couple 
 92.21  or (ii) $2,400 will be deemed to be the employment related 
 92.22  expense paid for that child.  The earned income limitation of 
 92.23  section 21(d) of the Internal Revenue Code shall not apply to 
 92.24  this deemed amount.  These deemed amounts apply regardless of 
 92.25  whether any employment-related expenses have been paid.  
 92.26     (d) An individual who: 
 92.27     (1) incurs employment-related expenses for the care of one 
 92.28  or more dependents who have attained the age of 13 years but not 
 92.29  attained the age of 15 years at the close of the taxable year; 
 92.30  and 
 92.31     (2) is not eligible for a credit under section 21 of the 
 92.32  Internal Revenue Code for the employment-related expenses 
 92.33  incurred after the dependent or dependents attained the age of 
 92.34  13 years; 
 92.35  is eligible for a credit under this paragraph only. 
 92.36  The credit under this paragraph equals the credit that would 
 93.1   have been allowed under this section if the dependent or 
 93.2   dependents had not attained the age of 13 years at the close of 
 93.3   the taxable year.  The credit under this paragraph in 
 93.4   combination with any other credits allowed under this section is 
 93.5   subject to the limitations in subdivision 2. 
 93.6      (d) (e) If the taxpayer is not required and does not file a 
 93.7   federal individual income tax return for the tax year, no credit 
 93.8   is allowed for any amount paid to any person unless: 
 93.9      (1) the name, address, and taxpayer identification number 
 93.10  of the person are included on the return claiming the credit; or 
 93.11     (2) if the person is an organization described in section 
 93.12  501(c)(3) of the Internal Revenue Code and exempt from tax under 
 93.13  section 501(a) of the Internal Revenue Code, the name and 
 93.14  address of the person are included on the return claiming the 
 93.15  credit.  
 93.16  In the case of a failure to provide the information required 
 93.17  under the preceding sentence, the preceding sentence does not 
 93.18  apply if it is shown that the taxpayer exercised due diligence 
 93.19  in attempting to provide the information required. 
 93.20     In the case of a nonresident, part-year resident, or a 
 93.21  person who has earned income not subject to tax under this 
 93.22  chapter, the credit determined under section 21 of the Internal 
 93.23  Revenue Code must be allocated based on the ratio by which the 
 93.24  earned income of the claimant and the claimant's spouse from 
 93.25  Minnesota sources bears to the total earned income of the 
 93.26  claimant and the claimant's spouse. 
 93.27     [EFFECTIVE DATE.] This section is effective for taxable 
 93.28  years beginning after December 31, 2000. 
 93.29     Sec. 3.  Minnesota Statutes 2000, section 290.0674, 
 93.30  subdivision 1, is amended to read: 
 93.31     Subdivision 1.  [CREDIT ALLOWED.] An individual is allowed 
 93.32  a credit against the tax imposed by this chapter in an amount 
 93.33  equal to the amount paid for education-related expenses for a 
 93.34  qualifying child in kindergarten through grade 12.  For purposes 
 93.35  of this section, "education-related expenses" means: 
 93.36     (1) fees or tuition for instruction by an instructor under 
 94.1   section 120A.22, subdivision 10, clause (1), (2), (3), (4), or 
 94.2   (5), or by a member of the Minnesota music teachers association, 
 94.3   for instruction outside the regular school day or school year, 
 94.4   including tutoring, driver's education offered as part of school 
 94.5   curriculum, regardless of whether it is taken from a public or 
 94.6   private entity or summer camps, in grade or age appropriate 
 94.7   curricula that supplement curricula and instruction available 
 94.8   during the regular school year, that assists a dependent to 
 94.9   improve knowledge of core curriculum areas or to expand 
 94.10  knowledge and skills under the graduation rule under section 
 94.11  120B.02 and that do not include the teaching of religious 
 94.12  tenets, doctrines, or worship, the purpose of which is to 
 94.13  instill such tenets, doctrines, or worship; 
 94.14     (2) expenses for textbooks, including books and other 
 94.15  instructional materials and equipment used in elementary and 
 94.16  secondary schools in teaching only those subjects legally and 
 94.17  commonly taught in public elementary and secondary schools in 
 94.18  this state.  "Textbooks" does not include instructional books 
 94.19  and materials used in the teaching of religious tenets, 
 94.20  doctrines, or worship, the purpose of which is to instill such 
 94.21  tenets, doctrines, or worship, nor does it include books or 
 94.22  materials for extracurricular activities including sporting 
 94.23  events, musical or dramatic events, speech activities, driver's 
 94.24  education, or similar programs; 
 94.25     (3) a maximum expense of $200 per family for personal 
 94.26  computer hardware, excluding single purpose processors, and 
 94.27  educational software that assists a dependent to improve 
 94.28  knowledge of core curriculum areas or to expand knowledge and 
 94.29  skills under the graduation rule under section 120B.02 purchased 
 94.30  for use in the taxpayer's home and not used in a trade or 
 94.31  business regardless of whether the computer is required by the 
 94.32  dependent's school; and 
 94.33     (4) the amount paid to others for transportation of a 
 94.34  qualifying child attending an elementary or secondary school 
 94.35  situated in Minnesota, North Dakota, South Dakota, Iowa, or 
 94.36  Wisconsin, wherein a resident of this state may legally fulfill 
 95.1   the state's compulsory attendance laws, which is not operated 
 95.2   for profit, and which adheres to the provisions of the Civil 
 95.3   Rights Act of 1964 and chapter 363.; 
 95.4      (5) the amount paid to a public school for participation in 
 95.5   extracurricular activities for which fees are authorized under 
 95.6   section 123B.36, subdivision 1, paragraph (b), clauses (2), (7), 
 95.7   and (10); and 
 95.8      (6) the amount paid to a nonpublic school for participation 
 95.9   in activities listed in section 123B.36, subdivision 1, 
 95.10  paragraph (b), clauses (2), (7), and (10). 
 95.11     For purposes of this section, "qualifying child" has the 
 95.12  meaning given in section 32(c)(3) of the Internal Revenue Code. 
 95.13     [EFFECTIVE DATE.] This section is effective for taxable 
 95.14  years beginning after December 31, 2000. 
 95.15     Sec. 4.  Minnesota Statutes 2000, section 290.0674, 
 95.16  subdivision 2, is amended to read: 
 95.17     Subd. 2.  [LIMITATIONS.] (a) For claimants with income not 
 95.18  greater than $33,500, the maximum credit allowed is $1,000 per 
 95.19  qualifying child and $2,000 per family.  No credit is allowed 
 95.20  for education-related expenses for claimants with income greater 
 95.21  than $37,500.  The maximum credit for each claimant is $1,000 
 95.22  multiplied by the number of qualifying children for whom the 
 95.23  individual claims the credit.  The maximum credit per child for 
 95.24  a claimant is reduced by $1 for each $4 of household income over 
 95.25  $33,500, and the maximum credit per family is reduced by $2 for 
 95.26  each $4 of household income over $33,500 for claimants with one 
 95.27  qualifying child, and by $1 for each $3 of household income over 
 95.28  $33,500 for all other claimants, but in no case is the credit 
 95.29  less than zero. 
 95.30     For purposes of this section "income" has the meaning given 
 95.31  in section 290.067, subdivision 2a.  In the case of a married 
 95.32  claimant, a credit is not allowed unless a joint income tax 
 95.33  return is filed. 
 95.34     (b) For a nonresident or part-year resident, the credit 
 95.35  determined under subdivision 1 and the maximum credit amount in 
 95.36  paragraph (a) must be allocated using the percentage calculated 
 96.1   in section 290.06, subdivision 2c, paragraph (e). 
 96.2      [EFFECTIVE DATE.] This section is effective for taxable 
 96.3   years beginning after December 31, 2000. 
 96.4                              ARTICLE 6 
 96.5                             SALES TAXES 
 96.6      Section 1.  Minnesota Statutes 2000, section 297A.61, 
 96.7   subdivision 12, is amended to read: 
 96.8      Subd. 12.  [FARM MACHINERY.] (a) "Farm machinery" means new 
 96.9   or used machinery, equipment, implements, accessories, and 
 96.10  contrivances used directly and principally in the production for 
 96.11  sale, but not including the processing, of livestock, dairy 
 96.12  animals, dairy products, poultry and poultry products, fruits, 
 96.13  vegetables, trees and shrubs, plants, forage, grains, and bees 
 96.14  and apiary products.  
 96.15     (b) Farm machinery includes: 
 96.16     (1) machinery for the preparation, seeding, or cultivation 
 96.17  of soil for growing agricultural crops and sod, for the 
 96.18  harvesting and threshing of agricultural products, or for the 
 96.19  harvesting or mowing of sod; 
 96.20     (2) barn cleaners, milking systems, grain dryers, automatic 
 96.21  feeding systems including stationary feed bunks, and similar 
 96.22  installations, whether or not the equipment is installed by the 
 96.23  seller and becomes part of the real property; 
 96.24     (3) irrigation equipment sold for exclusively agricultural 
 96.25  use, including pumps, pipe fittings, valves, sprinklers, and 
 96.26  other equipment necessary to the operation of an irrigation 
 96.27  system when sold as part of an irrigation system, whether or not 
 96.28  the equipment is installed by the seller and becomes part of the 
 96.29  real property; 
 96.30     (4) logging equipment, including chain saws used for 
 96.31  commercial logging; 
 96.32     (5) fencing used for the containment of farmed cervidae, as 
 96.33  defined in section 17.451, subdivision 2; 
 96.34     (6) primary and backup generator units used to generate 
 96.35  electricity for the purpose of operating farm machinery, as 
 96.36  defined in this subdivision, or providing light or space heating 
 97.1   necessary for the production of livestock, dairy animals, dairy 
 97.2   products, or poultry and poultry products; 
 97.3      (7) aquaculture production equipment as defined in 
 97.4   subdivision 13; and 
 97.5      (8) equipment used for maple syrup harvesting.  
 97.6      (c) Farm machinery does not include: 
 97.7      (1) repair or replacement parts; 
 97.8      (2) tools, shop equipment, grain bins, feed bunks, fencing 
 97.9   material except fencing material covered by paragraph (b), 
 97.10  clause (5), communication equipment, and other farm supplies; 
 97.11     (3) motor vehicles taxed under chapter 297B; 
 97.12     (4) snowmobiles or snow blowers; or 
 97.13     (5) lawn mowers except those used in the production of sod 
 97.14  for sale, or garden-type tractors or garden tillers. 
 97.15     [EFFECTIVE DATE.] This section is effective for sales and 
 97.16  purchases made after July 31, 2001. 
 97.17     Sec. 2.  Minnesota Statutes 2000, section 297A.62, 
 97.18  subdivision 3, is amended to read: 
 97.19     Subd. 3.  [MANUFACTURED HOUSING AND; PARK TRAILERS; 
 97.20  PREFABRICATED HOMES.] (a) For retail sales of manufactured homes 
 97.21  as defined in section 327.31, subdivision 6, for residential 
 97.22  uses, the sales tax under subdivision 1 is imposed on 65 percent 
 97.23  of the dealer's cost of the manufactured home.  
 97.24     (b) For retail sales of new or used park trailers, as 
 97.25  defined in section 168.011, subdivision 8, paragraph (b), the 
 97.26  sales tax under subdivision 1 is imposed on 65 percent of the 
 97.27  sales price of the park trailer.  
 97.28     (c) For retail sales of prefabricated homes, the sales tax 
 97.29  under subdivision 1 is imposed on 65 percent of the 
 97.30  manufacturer's wholesale list price of the prefabricated home 
 97.31  for sales to dealers.  As used in this paragraph, a 
 97.32  "prefabricated home" is a prefabricated building subject to 
 97.33  Minnesota Rules, chapter 1360 or 1361, that is intended for use 
 97.34  as a single-family or multifamily dwelling. 
 97.35     [EFFECTIVE DATE.] This section is effective for sales made 
 97.36  after July 31, 2001. 
 97.37     Sec. 3.  Minnesota Statutes 2000, section 297A.67, is 
 98.1   amended by adding a subdivision to read: 
 98.2      Subd. 27.  [ENERGY EFFICIENT PRODUCTS.] (a) A residential 
 98.3   lighting fixture or a compact fluorescent bulb is exempt if it 
 98.4   has an energy star label. 
 98.5      (b) The following products are exempt if they have an 
 98.6   energyguide label that indicates that the product meets or 
 98.7   exceeds the standards listed below: 
 98.8      (1) an electric heat pump hot water heater with an energy 
 98.9   factor of at least 1.9; 
 98.10     (2) a natural gas water heater with an energy factor of at 
 98.11  least 0.62; 
 98.12     (3) a window air conditioner with an energy efficiency 
 98.13  rating greater than 11.0; 
 98.14     (4) a clothes washer that uses less than 250 kilowatt-hours 
 98.15  per year or any horizontal axis washer; 
 98.16     (5) a central air conditioner with a seasonal energy 
 98.17  efficiency rating greater than 14.0; and 
 98.18     (6) a natural gas furnace with an annual fuel utilization 
 98.19  efficiency greater than 92 percent. 
 98.20     (c) For purposes of this subdivision, "energy star label" 
 98.21  means the label granted to certain products that meet United 
 98.22  States Environmental Protection Agency and United States 
 98.23  Department of Energy criteria for energy efficiency.  For 
 98.24  purposes of this subdivision, "energyguide label" means the 
 98.25  label that the United State Federal Trade Commissioner requires 
 98.26  manufacturers to apply to certain appliances under United States 
 98.27  Code, title 16, part 305. 
 98.28     [EFFECTIVE DATE.] This section is effective for sales and 
 98.29  purchases made after July 31, 2001, and before July 1, 2005. 
 98.30     Sec. 4.  Minnesota Statutes 2000, section 297A.71, is 
 98.31  amended by adding a subdivision to read: 
 98.32     Subd. 23.  [CONSTRUCTION MATERIALS AND EQUIPMENT; 
 98.33  AGRICULTURAL PROCESSING MATERIALS.] Materials and supplies used 
 98.34  or consumed in, and machinery and equipment incorporated into 
 98.35  the construction, improvement, or expansion of an agricultural 
 98.36  processing facility are exempt if: 
 99.1      (1) the facility is owned and operated by a cooperative 
 99.2   organized under chapter 308A; and 
 99.3      (2) the total capital investment in the processing facility 
 99.4   is at least $1,000,000 but no more than $100,000,000. 
 99.5      The tax must be imposed and collected as if the rate under 
 99.6   section 297A.62, subdivision 1, applied, and then refunded in 
 99.7   the manner provided in section 297A.75. 
 99.8      [EFFECTIVE DATE.] This section is effective for sales and 
 99.9   purchases made after June 30, 2001. 
 99.10     Sec. 5.  Minnesota Statutes 2000, section 297A.71, is 
 99.11  amended by adding a subdivision to read: 
 99.12     Subd. 24.  [CONSTRUCTION MATERIALS; YELLOW MEDICINE COUNTY 
 99.13  LAW ENFORCEMENT AND FAMILY SERVICE CENTER.] Materials and 
 99.14  supplies used or consumed in, and fixtures, furnishings, and 
 99.15  equipment incorporated into, the construction, improvement, or 
 99.16  expansion of the Yellow Medicine county law enforcement and 
 99.17  family service center are exempt.  The tax must be imposed and 
 99.18  collected as if the rate under section 297A.62, subdivision 1, 
 99.19  applied and then refunded in the manner prescribed for refunds 
 99.20  in section 297A.75. 
 99.21     [EFFECTIVE DATE.] This section is effective for sales and 
 99.22  purchases made after June 30, 2000, and before January 1, 2003. 
 99.23     Sec. 6.  Minnesota Statutes 2000, section 297A.71, is 
 99.24  amended by adding a subdivision to read: 
 99.25     Subd. 25.  [POULTRY LITTER BIOMASS GENERATION FACILITY 
 99.26  CONSTRUCTION MATERIALS AND EQUIPMENT.] Materials and supplies 
 99.27  used or consumed in, and equipment incorporated into, the 
 99.28  construction, improvement, or expansion of a facility using 
 99.29  biomass to generate electricity are exempt if: 
 99.30     (1) the facility is designed to utilize poultry litter 
 99.31  biomass as a primary fuel source; and 
 99.32     (2) the facility generates power under a contract approved 
 99.33  by the public utilities commission in accordance with the 
 99.34  biomass mandate imposed under section 216B.2424. 
 99.35     [EFFECTIVE DATE.] This section is effective for purchases 
 99.36  and sales after June 30, 2001, and before January 1, 2003. 
100.1      Sec. 7.  Minnesota Statutes 2000, section 297A.71, is 
100.2   amended by adding a subdivision to read: 
100.3      Subd. 26.  [CONSTRUCTION MATERIALS AND EQUIPMENT; WASTE 
100.4   TIRES COGENERATION ELECTRIC GENERATING FACILITY.] Materials and 
100.5   supplies used or consumed in, and equipment incorporated into, 
100.6   the construction, improvement, or expansion of a facility using 
100.7   waste tires to generate electricity are exempt if: 
100.8      (1) the facility utilizes waste tires as a primary fuel in 
100.9   generating electricity; 
100.10     (2) the facility is a cogeneration facility; and 
100.11     (3) the installed capacity of the facility is 1 to 25 
100.12  megawatts. 
100.13     [EFFECTIVE DATE.] This section is effective for purchases 
100.14  and sales made on or after June 1, 2001. 
100.15     Sec. 8.  Minnesota Statutes 2000, section 297A.71, is 
100.16  amended by adding a subdivision to read: 
100.17     Subd. 27.  [CONSTRUCTION MATERIALS FOR QUALIFIED LOW-INCOME 
100.18  HOUSING PROJECTS.] (a) Purchases of materials and supplies used 
100.19  or consumed in and equipment incorporated into the construction, 
100.20  improvement, or expansion of qualified low-income housing 
100.21  projects are exempt from the tax imposed under this chapter if 
100.22  the owner of the qualified low-income housing project is: 
100.23     (1) the public housing agency or housing and redevelopment 
100.24  authority of a political subdivision; 
100.25     (2) an entity exercising the powers of a housing and 
100.26  redevelopment authority within a political subdivision; 
100.27     (3) a limited partnership in which the sole general partner 
100.28  is an authority under clause (1) or an entity under clause (2); 
100.29  or 
100.30     (4) a nonprofit corporation subject to the provisions of 
100.31  chapter 317A, and qualifying under section 501(c)(3) or 
100.32  501(c)(4) of the Internal Revenue Code of 1986, as amended. 
100.33     This exemption applies regardless of whether the purchases 
100.34  are made by the owner of the facility or a contractor.  
100.35     (b) For purposes of this exemption, "qualified low-income 
100.36  housing project" means: 
101.1      (1) a housing or mixed use project in which at least 20 
101.2   percent of the residential units are qualifying low-income 
101.3   rental housing units as defined in section 273.126; 
101.4      (2) a federally assisted low-income housing project 
101.5   financed by a mortgage insured or held by the United States 
101.6   Department of Housing and Urban Development under United States 
101.7   Code, title 12, section 1701s, 1715l(d)(3), 1715l(d)(4), or 
101.8   1715z-1; United States Code, title 42, section 1437f; the Native 
101.9   American Housing Assistance and Self-Determination Act, United 
101.10  States Code, title 25, section 4101 et seq.; or any similar 
101.11  successor federal low-income housing program; 
101.12     (3) a qualified low-income housing project as defined in 
101.13  United States Code, title 26, section 42(g), meeting all of the 
101.14  requirements for a low-income housing credit under section 42 of 
101.15  the Internal Revenue Code regardless of whether the project 
101.16  actually applies for or receives a low-income housing credit; or 
101.17     (4) a project that will be operated in compliance with 
101.18  Internal Revenue Service revenue procedure 96-32. 
101.19     [EFFECTIVE DATE.] This section is effective for sales and 
101.20  purchases occurring after June 30, 2001. 
101.21     Sec. 9.  Minnesota Statutes 2000, section 297A.75, is 
101.22  amended to read: 
101.23     297A.75 [REFUND; APPROPRIATION.] 
101.24     Subdivision 1.  [TAX COLLECTED.] The tax on the gross 
101.25  receipts from the sale of the following exempt items must be 
101.26  imposed and collected as if the sale were taxable and the rate 
101.27  under section 297A.62, subdivision 1, applied.  The exempt items 
101.28  include: 
101.29     (1) capital equipment exempt under section 297A.68, 
101.30  subdivision 5; 
101.31     (2) building materials for an agricultural processing 
101.32  facility exempt under section 297A.71, subdivision 13; 
101.33     (3) building materials for mineral production facilities 
101.34  exempt under section 297A.71, subdivision 14; 
101.35     (4) building materials for correctional facilities under 
101.36  section 297A.71, subdivision 3; 
102.1      (5) building materials used in a residence for disabled 
102.2   veterans exempt under section 297A.71, subdivision 11; and 
102.3      (6) chair lifts, ramps, elevators, and associated building 
102.4   materials exempt under section 297A.71, subdivision 12; 
102.5      (7) building materials, supplies, machinery, and equipment 
102.6   for an agricultural processing facility under section 297A.71, 
102.7   subdivision 23; and 
102.8      (8) materials, supplies, fixtures, furnishings, and 
102.9   equipment for a county law enforcement and family service center 
102.10  under section 297A.71, subdivision 24. 
102.11     Subd. 2.  [REFUND; ELIGIBLE PERSONS.] Upon application on 
102.12  forms prescribed by the commissioner, a refund equal to the tax 
102.13  paid on the gross receipts of the exempt items must be paid to 
102.14  the applicant.  Only the following persons may apply for the 
102.15  refund: 
102.16     (1) for subdivision 1, clauses (1) to (3), the applicant 
102.17  must be the purchaser; 
102.18     (2) for subdivision 1, clause clauses (4) and (8), the 
102.19  applicant must be the governmental subdivision; 
102.20     (3) for subdivision 1, clause (5), the applicant must be 
102.21  the recipient of the benefits provided in United States Code, 
102.22  title 38, chapter 21; and 
102.23     (4) for subdivision 1, clause (6), the applicant must be 
102.24  the owner of the homestead property; and 
102.25     (5) for subdivision 1, clause (7), the applicant must be 
102.26  the owner of the agricultural processing facility. 
102.27     Subd. 3.  [APPLICATION.] (a) The application must include 
102.28  sufficient information to permit the commissioner to verify the 
102.29  tax paid.  If the tax was paid by a contractor, subcontractor, 
102.30  or builder, under subdivision 1, clause (4), (5), or (6), (7), 
102.31  or (8), the contractor, subcontractor, or builder must furnish 
102.32  to the refund applicant a statement including the cost of the 
102.33  exempt items and the taxes paid on the items unless otherwise 
102.34  specifically provided by this subdivision.  The provisions of 
102.35  sections 289A.40 and 289A.50 apply to refunds under this section.
102.36     (b) An applicant may not file more than two applications 
103.1   per calendar year for refunds for taxes paid on capital 
103.2   equipment exempt under section 297A.68, subdivision 5.  
103.3      Subd. 4.  [INTEREST.] Interest must be paid on the refund 
103.4   at the rate in section 270.76 from the date the refund claim is 
103.5   filed for taxes paid under subdivision 1, clauses (1) to, 
103.6   (3), and (5), and (7), and from 60 days after the date the 
103.7   refund claim is filed with the commissioner for claims filed 
103.8   under subdivision 1, clauses (4) and (6), and (8). 
103.9      Subd. 5.  [APPROPRIATION.] The amount required to make the 
103.10  refunds is annually appropriated to the commissioner. 
103.11     [EFFECTIVE DATE.] This section is effective for sales and 
103.12  purchases made after June 30, 2001, except that clause (8) and 
103.13  references to clause (8) are effective June 30, 2001, for 
103.14  purchases made after June 30, 2000, and before January 1, 2003. 
103.15     Sec. 10.  Minnesota Statutes 2000, section 297B.03, is 
103.16  amended to read: 
103.17     297B.03 [EXEMPTIONS.] 
103.18     There is specifically exempted from the provisions of this 
103.19  chapter and from computation of the amount of tax imposed by it 
103.20  the following:  
103.21     (1) purchase or use, including use under a lease purchase 
103.22  agreement or installment sales contract made pursuant to section 
103.23  465.71, of any motor vehicle by the United States and its 
103.24  agencies and instrumentalities and by any person described in 
103.25  and subject to the conditions provided in section 297A.25, 
103.26  subdivision 18; 
103.27     (2) purchase or use of any motor vehicle by any person who 
103.28  was a resident of another state at the time of the purchase and 
103.29  who subsequently becomes a resident of Minnesota, provided the 
103.30  purchase occurred more than 60 days prior to the date such 
103.31  person began residing in the state of Minnesota; 
103.32     (3) purchase or use of any motor vehicle by any person 
103.33  making a valid election to be taxed under the provisions of 
103.34  section 297A.211; 
103.35     (4) purchase or use of any motor vehicle previously 
103.36  registered in the state of Minnesota when such transfer 
104.1   constitutes a transfer within the meaning of section 118, 331, 
104.2   332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 
104.3   1563(a) of the Internal Revenue Code of 1986, as amended through 
104.4   December 31, 1999; 
104.5      (5) purchase or use of any vehicle owned by a resident of 
104.6   another state and leased to a Minnesota based private or for 
104.7   hire carrier for regular use in the transportation of persons or 
104.8   property in interstate commerce provided the vehicle is titled 
104.9   in the state of the owner or secured party, and that state does 
104.10  not impose a sales tax or sales tax on motor vehicles used in 
104.11  interstate commerce; 
104.12     (6) purchase or use of a motor vehicle by a private 
104.13  nonprofit or public educational institution for use as an 
104.14  instructional aid in automotive training programs operated by 
104.15  the institution.  "Automotive training programs" includes motor 
104.16  vehicle body and mechanical repair courses but does not include 
104.17  driver education programs; 
104.18     (7) purchase of a motor vehicle for use as an ambulance by 
104.19  an ambulance service licensed under section 144E.10; 
104.20     (8) purchase of a motor vehicle by or for a public library, 
104.21  as defined in section 134.001, subdivision 2, as a bookmobile or 
104.22  library delivery vehicle; 
104.23     (9) purchase of a ready-mixed concrete truck; 
104.24     (10) purchase or use of a motor vehicle by a town for use 
104.25  exclusively for road maintenance, including snowplows and dump 
104.26  trucks, but not including automobiles, vans, or pickup trucks; 
104.27     (11) purchase or use of a motor vehicle by a corporation, 
104.28  society, association, foundation, or institution organized and 
104.29  operated exclusively for charitable, religious, or educational 
104.30  purposes, but only if the vehicle is: 
104.31     (i) a truck, as defined in section 168.011, a bus, as 
104.32  defined in section 168.011, or a passenger automobile, as 
104.33  defined in section 168.011, if the automobile is designed and 
104.34  used for carrying more than nine persons including the driver; 
104.35  and 
104.36     (ii) intended to be used primarily to transport tangible 
105.1   personal property or individuals, other than employees, to whom 
105.2   the organization provides service in performing its charitable, 
105.3   religious, or educational purpose.; and 
105.4      (12) a purchase or use of a motor vehicle that draws its 
105.5   propulsion energy either: 
105.6      (i) solely from an alternative fuel source; or 
105.7      (ii) from a rechargeable energy storage system and either 
105.8   unleaded gasoline, diesel fuel, or an alternative fuel or a 
105.9   mixture of two or more of these fuels. 
105.10     For purposes of this clause, "alternative fuel source" 
105.11  means a fuel that the United States Department of Energy 
105.12  recognizes and classifies as an alternative fuel, including, but 
105.13  not limited to: 
105.14     (1) alcohol fuels where the fuel mixture consists of at 
105.15  least 70 percent by volume of an alcohol product such as 
105.16  methanol or denatured alcohol; 
105.17     (2) natural gas, whether compressed or liquefied; 
105.18     (3) liquefied petroleum gas; 
105.19     (4) hydrogen; 
105.20     (5) coal-derived liquid fuels; 
105.21     (6) fuels derived from biological materials; and 
105.22     (7) electricity, including solar power. 
105.23     [EFFECTIVE DATE.] This section is effective for sales and 
105.24  purchases made after July 31, 2001, and before January 1, 2005. 
105.25     Sec. 11.  Laws 1999, chapter 243, article 4, section 19, is 
105.26  amended to read: 
105.27     Sec. 19.  [EFFECTIVE DATES.] 
105.28     Sections 1, 2, 5, 7, 9, and 11 are effective for sales and 
105.29  purchases made after June 30, 1999.  
105.30     Section 3 is effective for amended returns and refund 
105.31  claims filed on or after July 1, 1999. 
105.32     Section 4 is effective the day following final enactment 
105.33  and applies retroactively to all open tax years and to 
105.34  assessments and appeals under Minnesota Statutes, sections 
105.35  289A.38 and 289A.65, for which the time limits have not expired 
105.36  on the date of final enactment of this act.  The provisions of 
106.1   Minnesota Statutes, section 289A.50, apply to refunds claimed 
106.2   under section 4.  Refunds claimed under section 4 must be filed 
106.3   by the later of December 31, 1999, or the time limit under 
106.4   Minnesota Statutes, section 289A.40, subdivision 1. 
106.5      Section 6 is effective retroactively for sales and 
106.6   purchases made after June 30, 1998. 
106.7      Section 8 is effective for purchases and sales made after 
106.8   the date of final enactment.  
106.9      Section 10 is effective for purchases made after the date 
106.10  of final enactment and before July 1, 2001 2003. 
106.11     Section 12 is effective the day after final enactment.  
106.12  Section 12, paragraphs (a) to (c), apply to all local sales 
106.13  taxes enacted after July 1, 1999.  Section 12, paragraph (d), 
106.14  applies to all local sales taxes in effect at the time of, or 
106.15  imposed after the day of, the enactment of this section. 
106.16     Section 13 is effective the day following final enactment. 
106.17     [EFFECTIVE DATE.] This section is effective the day after 
106.18  final enactment. 
106.19     Sec. 12.  Laws 2000, chapter 490, article 8, section 17, 
106.20  the effective date, is amended to read: 
106.21     EFFECTIVE DATE: This section is effective for sales and 
106.22  purchases made after January 1, 2000, and before December 
106.23  31, 2000 2001. 
106.24     [EFFECTIVE DATE.] This section is effective the day 
106.25  following final enactment and applies retroactively to sales and 
106.26  purchases made on or after December 31, 2000. 
106.27                             ARTICLE 7
106.28                         HEALTH CARE TAXES 
106.29     Section 1.  [16A.78] [HEALTH CARE ACCESS FUND RESERVE.] 
106.30     Subdivision 1.  [ESTABLISH RESERVE.] A reserve is 
106.31  established within the health care access fund for uses 
106.32  necessary to preserve access to basic health care services. 
106.33     Subd. 2.  [RESERVE FINANCING.] The funds in the reserve are 
106.34  equal to 15 percent of the expenditures for the MinnesotaCare 
106.35  program in the immediately prior fiscal year. 
106.36     Subd. 3.  [RESERVE USE.] The reserve is established to 
107.1   protect access to basic health care services that are publicly 
107.2   funded. 
107.3      [EFFECTIVE DATE.] This section is effective July 1, 2001. 
107.4      Sec. 2.  Minnesota Statutes 2000, section 62J.041, 
107.5   subdivision 1, is amended to read: 
107.6      Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
107.7   section, the following definitions apply. 
107.8      (b) "Health plan company" has the definition provided in 
107.9   section 62Q.01. 
107.10     (c) "Total expenditures" means incurred claims or 
107.11  expenditures on health care services, administrative expenses, 
107.12  charitable contributions, and all other payments made by health 
107.13  plan companies out of premium revenues. 
107.14     (d) "Net expenditures" means total expenditures minus 
107.15  exempted taxes and assessments and payments or allocations made 
107.16  to establish or maintain reserves.  
107.17     (e) "Exempted taxes and assessments" means direct payments 
107.18  for taxes to government agencies, contributions to the Minnesota 
107.19  comprehensive health association, the medical assistance 
107.20  provider's surcharge under section 256.9657, the MinnesotaCare 
107.21  provider tax under Minnesota Statutes 2000, section 295.52, 
107.22  assessments by the health coverage reinsurance association, 
107.23  assessments by the Minnesota life and health insurance guaranty 
107.24  association, assessments by the Minnesota risk adjustment 
107.25  association, and any new assessments imposed by federal or state 
107.26  law. 
107.27     (f) "Consumer cost-sharing or subscriber liability" means 
107.28  enrollee coinsurance, copayment, deductible payments, and 
107.29  amounts in excess of benefit plan maximums. 
107.30     [EFFECTIVE DATE.] This section is effective January 1, 2002.
107.31     Sec. 3.  Minnesota Statutes 2000, section 62Q.095, 
107.32  subdivision 6, is amended to read: 
107.33     Subd. 6.  [EXEMPTION.] A health plan company, to the extent 
107.34  that it operates as a staff model health plan company as defined 
107.35  in section 295.50, subdivision 12b, by employing allied 
107.36  independent health care providers to deliver health care 
108.1   services to enrollees, is exempt from this section.  For 
108.2   purposes of this subdivision, "staff model health plan company" 
108.3   means a health plan company as defined in section 62Q.01, 
108.4   subdivision 4, that employs one or more types of health care 
108.5   provider to deliver health care services to the health plan 
108.6   company's enrollees. 
108.7      [EFFECTIVE DATE.] This section is effective January 1, 2002.
108.8      Sec. 4.  [62Q.671] [PASS-THROUGH OF SAVINGS TO CONSUMERS.] 
108.9      Subdivision 1.  [REDUCED PREMIUMS.] All health plan 
108.10  companies must pass on to consumers, in the form of reduced 
108.11  premium rates, all savings resulting from: 
108.12     (1) the repeal of the MinnesotaCare provider taxes imposed 
108.13  under Minnesota Statutes 2000, section 295.52, and the resulting 
108.14  reduction in the transfer of additional expenses generated by 
108.15  Minnesota Statutes 2000, section 295.52, obligations to 
108.16  third-party contracts under Minnesota Statutes 2000, section 
108.17  295.582; and 
108.18     (2) the repeal of the one percent premium tax for health 
108.19  maintenance organizations, nonprofit health service plan 
108.20  corporations, and community integrated service networks imposed 
108.21  under Minnesota Statutes 2000, section 297I.05, subdivision 5. 
108.22     Subd. 2.  [DOCUMENTING COMPLIANCE.] Each health plan 
108.23  company must include with its annual renewal for certification 
108.24  of authority or licensure documentation indicating compliance 
108.25  with subdivision 1. 
108.26     Subd. 3.  [ENFORCEMENT.] If the appropriate commissioner 
108.27  finds that a health plan company has not complied with 
108.28  subdivision 1, the commissioner may take enforcement action 
108.29  against that health plan company.  The commissioner may, by 
108.30  order, fine, or censure the health plan company or revoke or 
108.31  suspend the certificate of authority or license of the health 
108.32  plan company to do business in this state if the commissioner 
108.33  finds that the health plan company has not complied with this 
108.34  section.  The health plan company may appeal the commissioner's 
108.35  order through a contested case hearing in accordance with 
108.36  chapter 14. 
109.1      [EFFECTIVE DATE.] This section is effective January 1, 
109.2   2002, and applies to premium rates for health plans issued or 
109.3   renewed after that date. 
109.4      Sec. 5.  Minnesota Statutes 2000, section 214.16, 
109.5   subdivision 2, is amended to read: 
109.6      Subd. 2.  [BOARD COOPERATION REQUIRED.] The board shall 
109.7   assist the commissioner of health in data collection activities 
109.8   required under Laws 1992, chapter 549, article 7, and shall 
109.9   assist the commissioner of revenue in activities related to 
109.10  collection of the health care provider tax required under Laws 
109.11  1992, chapter 549, article 9.  Upon the request of the 
109.12  commissioner or the commissioner of revenue, the board shall 
109.13  make available names and addresses of current licensees and 
109.14  provide other information or assistance as needed. 
109.15     [EFFECTIVE DATE.] This section is effective January 1, 2002.
109.16     Sec. 6.  Minnesota Statutes 2000, section 214.16, 
109.17  subdivision 3, is amended to read: 
109.18     Subd. 3.  [GROUNDS FOR DISCIPLINARY ACTION.] The board 
109.19  shall take disciplinary action, which may include license 
109.20  revocation, against a regulated person for: 
109.21     (1) intentional failure to provide the commissioner of 
109.22  health with the data required under chapter 62J; and 
109.23     (2) intentional failure to provide the commissioner of 
109.24  revenue with data on gross revenue and other information 
109.25  required for the commissioner to implement sections 295.50 to 
109.26  295.58; 
109.27     (3) intentional failure to pay the health care provider tax 
109.28  required under section 295.52; and 
109.29     (4) entering into a contract or arrangement that is 
109.30  prohibited under sections 62J.70 to 62J.73. 
109.31     [EFFECTIVE DATE.] This section is effective January 1, 2002.
109.32     Sec. 7.  [256L.021] [USE OF TOBACCO SETTLEMENT PROCEEDS.] 
109.33     (a) The commissioner of finance shall deposit the following 
109.34  amounts of the annual payments due under the terms of the 
109.35  tobacco settlement on December 31 of each year into the health 
109.36  care access fund established under section 16A.724: 
110.1      (1) the first $132,000,000 of the payment due December 31, 
110.2   2001; 
110.3      (2) the first $119,500,000 of the payment due December 31, 
110.4   2003; and 
110.5      (3) all payments due after January 1, 2004. 
110.6      (b) The commissioner of finance shall credit to the health 
110.7   care access fund the one-time tobacco settlement payment due on 
110.8   January 2, 2002. 
110.9      (c) For purposes of this section, "tobacco settlement" 
110.10  means the consent judgment entered in the case of State v. 
110.11  Philip Morris Inc., No. C1-94-8565 (Minnesota District Court, 
110.12  Second Judicial District). 
110.13     [EFFECTIVE DATE.] This section is effective the day 
110.14  following final enactment. 
110.15     Sec. 8.  Minnesota Statutes 2000, section 270B.01, 
110.16  subdivision 8, is amended to read: 
110.17     Subd. 8.  [MINNESOTA TAX LAWS.] For purposes of this 
110.18  chapter only, unless expressly stated otherwise, "Minnesota tax 
110.19  laws" means the taxes, refunds, and fees administered by or paid 
110.20  to the commissioner under chapters 115B (except taxes imposed 
110.21  under sections 115B.21 to 115B.24), 289A (except taxes imposed 
110.22  under sections 298.01, 298.015, and 298.24), 290, 290A, 291, 
110.23  297A, and 297H and sections 295.50 to 295.59, or any similar 
110.24  Indian tribal tax administered by the commissioner pursuant to 
110.25  any tax agreement between the state and the Indian tribal 
110.26  government, and includes any laws for the assessment, 
110.27  collection, and enforcement of those taxes, refunds, and fees. 
110.28     [EFFECTIVE DATE.] This section is effective January 1, 2002.
110.29     Sec. 9.  Minnesota Statutes 2000, section 270B.14, 
110.30  subdivision 1, is amended to read: 
110.31     Subdivision 1.  [DISCLOSURE TO COMMISSIONER OF HUMAN 
110.32  SERVICES.] (a) On the request of the commissioner of human 
110.33  services, the commissioner shall disclose return information 
110.34  regarding taxes imposed by chapter 290, and claims for refunds 
110.35  under chapter 290A, to the extent provided in paragraph (b) and 
110.36  for the purposes set forth in paragraph (c). 
111.1      (b) Data that may be disclosed are limited to data relating 
111.2   to the identity, whereabouts, employment, income, and property 
111.3   of a person owing or alleged to be owing an obligation of child 
111.4   support. 
111.5      (c) The commissioner of human services may request data 
111.6   only for the purposes of carrying out the child support 
111.7   enforcement program and to assist in the location of parents who 
111.8   have, or appear to have, deserted their children.  Data received 
111.9   may be used only as set forth in section 256.978. 
111.10     (d) The commissioner shall provide the records and 
111.11  information necessary to administer the supplemental housing 
111.12  allowance to the commissioner of human services.  
111.13     (e) At the request of the commissioner of human services, 
111.14  the commissioner of revenue shall electronically match the 
111.15  social security numbers and names of participants in the 
111.16  telephone assistance plan operated under sections 237.69 to 
111.17  237.711, with those of property tax refund filers, and determine 
111.18  whether each participant's household income is within the 
111.19  eligibility standards for the telephone assistance plan. 
111.20     (f) The commissioner may provide records and information 
111.21  collected under Minnesota Statutes 2000, sections 295.50 to 
111.22  295.59 to the commissioner of human services for purposes of the 
111.23  Medicaid Voluntary Contribution and Provider-Specific Tax 
111.24  Amendments of 1991, Public Law Number 102-234.  Upon the written 
111.25  agreement by the United States Department of Health and Human 
111.26  Services to maintain the confidentiality of the data, the 
111.27  commissioner may provide records and information collected under 
111.28  Minnesota Statutes 2000, sections 295.50 to 295.59 to the Health 
111.29  Care Financing Administration section of the United States 
111.30  Department of Health and Human Services for purposes of meeting 
111.31  federal reporting requirements.  
111.32     (g) The commissioner may provide records and information to 
111.33  the commissioner of human services as necessary to administer 
111.34  the early refund of refundable tax credits. 
111.35     (h) The commissioner may disclose information to the 
111.36  commissioner of human services necessary to verify income for 
112.1   eligibility and premium payment under the MinnesotaCare program, 
112.2   under section 256L.05, subdivision 2. 
112.3      (i) The commissioner may disclose information to the 
112.4   commissioner of human services necessary to verify whether 
112.5   applicants or recipients for the Minnesota family investment 
112.6   program, general assistance, food stamps, and Minnesota 
112.7   supplemental aid program have claimed refundable tax credits 
112.8   under chapter 290 and the property tax refund under chapter 
112.9   290A, and the amounts of the credits. 
112.10     [EFFECTIVE DATE.] This section is effective January 1, 2002.
112.11     Sec. 10.  Minnesota Statutes 2000, section 297F.10, 
112.12  subdivision 1, is amended to read: 
112.13     Subdivision 1.  [TAX AND USE TAX ON CIGARETTES.] Revenue 
112.14  received from cigarette taxes, as well as related penalties, 
112.15  interest, license fees, and miscellaneous sources of revenue 
112.16  shall be deposited by the commissioner in the state treasury and 
112.17  credited as follows: 
112.18     (a) first to the general obligation special tax bond debt 
112.19  service account in each fiscal year the amount required to 
112.20  increase the balance on hand in the account on each December 1 
112.21  to an amount equal to the full amount of principal and interest 
112.22  to come due on all outstanding bonds whose debt service is 
112.23  payable primarily from the proceeds of the tax to and including 
112.24  the second following July 1; and 
112.25     (b) after the requirements of paragraph (a) have been met: 
112.26     (1) the revenue produced by one mill of the tax on 
112.27  cigarettes weighing not more than three pounds a thousand and 
112.28  two mills of the tax on cigarettes weighing more than three 
112.29  pounds a thousand must be credited to the Minnesota future 
112.30  resources fund; and 
112.31     (2) the amount of revenue specified under paragraph (c) 
112.32  must be credited to the health care access fund; and 
112.33     (3) the balance of the revenues derived from taxes, 
112.34  penalties, and interest (under this chapter) and from license 
112.35  fees and miscellaneous sources of revenue shall be credited to 
112.36  the general fund. 
113.1      (c) For fiscal year 2005, $112,000,000 of the revenue under 
113.2   paragraph (b) must be credited to the health care access fund.  
113.3   For each fiscal year after 2005, the amount credited to the 
113.4   health care access fund equals: 
113.5      (1) the amount certified to be paid in the previous year, 
113.6   plus 
113.7      (2) the percentage increase in the medical care of personal 
113.8   consumption expenditures, published by the Bureau of Economic 
113.9   Affairs of the United States Department of Commerce, for the 
113.10  most recent 12-month period available May 31 of the previous 
113.11  fiscal year multiplied by the sum of the amount under clause (1) 
113.12  and the amount of the ongoing tobacco settlement payments 
113.13  deposited in the health care access fund under section 256L.021, 
113.14  paragraph (a), clause (3), for the previous fiscal year. 
113.15     [EFFECTIVE DATE.] This section is effective beginning with 
113.16  fiscal year 2004. 
113.17     Sec. 11.  [REPEALER.] 
113.18     Subdivision 1.  [MINNESOTACARE PROVIDER TAX.] Minnesota 
113.19  Statutes 2000, sections 295.50; 295.51; 295.52; 295.53; 295.54; 
113.20  295.55; 295.56; 295.57; 295.58; 295.582; and 295.59, are 
113.21  repealed. 
113.22     Subd. 2.  [FEDERAL RESERVE; FINANCIAL MANAGEMENT.] 
113.23  Minnesota Statutes 2000, sections 16A.76; and 256L.02, 
113.24  subdivision 3, are repealed. 
113.25     Subd. 3.  [CONFORMING PROVISIONS.] Minnesota Statutes 2000, 
113.26  sections 13.4967, subdivision 3; 62T.10; and 144.1484, 
113.27  subdivision 2, are repealed. 
113.28     [EFFECTIVE DATE.] This section is effective January 1, 
113.29  2002, and applies to tax years beginning on or after that date. 
113.30                             ARTICLE 8
113.31                         MINERALS TAXATION
113.32     Section 1.  Minnesota Statutes 2000, section 116J.424, is 
113.33  amended to read: 
113.34     116J.424 [IRRRB CONTRIBUTION.] 
113.35     The commissioner of the iron range resources and 
113.36  rehabilitation board with approval of the board shall provide an 
114.1   equal match for any loan or equity investment made for a 
114.2   facility located in the tax relief area defined in section 
114.3   273.134, paragraph (b), by the Minnesota minerals 21st century 
114.4   fund created by section 116J.423.  The match may be in the form 
114.5   of a loan or equity investment, notwithstanding whether the fund 
114.6   makes a loan or equity investment.  The state shall not acquire 
114.7   an equity interest because of an equity investment or loan by 
114.8   the board and the board at its sole discretion shall decide what 
114.9   interest it acquires in a project.  The commissioner of trade 
114.10  and economic development may require a commitment from the board 
114.11  to make the match prior to disbursing money from the fund. 
114.12     Sec. 2.  Minnesota Statutes 2000, section 123B.75, is 
114.13  amended by adding a subdivision to read: 
114.14     Subd. 6b.  [TACONITE PRODUCTION TAX AID.] Taconite 
114.15  production tax aid received under section 298.28 must be 
114.16  recognized as revenue in the fiscal year preceding its 
114.17  distribution. 
114.18     [EFFECTIVE DATE.] This section is effective for 
114.19  distributions in 2002 and thereafter. 
114.20     Sec. 3.  Minnesota Statutes 2000, section 126C.48, 
114.21  subdivision 8, is amended to read: 
114.22     Subd. 8.  [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 
114.23  Reductions in levies pursuant to sections 126C.48, subdivision 
114.24  1, and 273.138, must be made prior to the reductions in clause 
114.25  (2). 
114.26     (2) Notwithstanding any other law to the contrary, 
114.27  districts which received payments pursuant to sections 298.018; 
114.28  298.24 to 298.28, except an amount distributed under section 
114.29  298.28, subdivision 4, paragraph (c), clause (ii); 298.34 to 
114.30  298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 
114.31  upon severed mineral values, or recognized revenue pursuant to 
114.32  section 477A.15 or section 44; must not include a portion of 
114.33  these aids in their permissible levies pursuant to those 
114.34  sections, but instead must reduce the permissible levies 
114.35  authorized by this chapter and chapters 120B, 122A, 123A, 123B, 
114.36  124A, 124D, 125A, and 127A by the greater of the following: 
115.1      (a) an amount equal to 50 percent of the total dollar 
115.2   amount of the payments received pursuant to those sections or 
115.3   revenue recognized pursuant to section 477A.15 or section 44 in 
115.4   the previous fiscal year; or 
115.5      (b) an amount equal to the total dollar amount of the 
115.6   payments received pursuant to those sections or revenue 
115.7   recognized pursuant to section 477A.15 in the previous fiscal 
115.8   year less the product of the same dollar amount of payments or 
115.9   revenue times five percent. 
115.10     (3) No reduction pursuant to this subdivision shall reduce 
115.11  the levy made by the district pursuant to section 126C.13, to an 
115.12  amount less than the amount raised by a levy of a net tax rate 
115.13  of 6.82 percent times the adjusted net tax capacity for taxes 
115.14  payable in 1990 and thereafter of that district for the 
115.15  preceding year as determined by the commissioner.  The amount of 
115.16  any increased levy authorized by referendum pursuant to section 
115.17  126C.17, subdivision 9, shall not be reduced pursuant to this 
115.18  subdivision.  The amount of any levy authorized by section 
115.19  126C.43, to make payments for bonds issued and for interest 
115.20  thereon, shall not be reduced pursuant to this subdivision.  
115.21     (4) Before computing the reduction pursuant to this 
115.22  subdivision of the health and safety levy authorized by sections 
115.23  123B.57 and 126C.40, subdivision 5, the commissioner shall 
115.24  ascertain from each affected school district the amount it 
115.25  proposes to levy under each section or subdivision.  The 
115.26  reduction shall be computed on the basis of the amount so 
115.27  ascertained. 
115.28     (5) Notwithstanding any law to the contrary, any amounts 
115.29  received by districts in any fiscal year pursuant to sections 
115.30  298.018; 298.24 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 
115.31  298.405; or any law imposing a tax on severed mineral values; 
115.32  and not deducted from general education aid pursuant to section 
115.33  126C.21, subdivision 4, clause (2), and not applied to reduce 
115.34  levies pursuant to this subdivision shall be paid by the 
115.35  district to the St. Louis county auditor in the following amount 
115.36  by March 15 of each year, the amount required to be subtracted 
116.1   from the previous fiscal year's general education aid pursuant 
116.2   to section 126C.21, subdivision 4, which is in excess of the 
116.3   general education aid earned for that fiscal year.  The county 
116.4   auditor shall deposit any amounts received pursuant to this 
116.5   clause in the St. Louis county treasury for purposes of paying 
116.6   the taconite homestead credit as provided in section 273.135. 
116.7      Sec. 4.  Minnesota Statutes 2000, section 273.134, is 
116.8   amended to read: 
116.9      273.134 [TACONITE AND IRON ORE AREAS; TAX RELIEF AREA; 
116.10  DEFINITIONS.] 
116.11     (a) For purposes of this section and section 273.135, 
116.12  "municipality" means any city, however organized, or town, and 
116.13  the applicable assessment date is the date as of which property 
116.14  is listed and assessed for the tax in question. 
116.15     For the purposes of section 273.135, "tax relief area" 
116.16  means the geographic area contained, within the boundaries of a 
116.17  school district on January 2, 2000, which contains a 
116.18  municipality which meets the following qualifications: 
116.19     (1) it is a municipality in which the assessed valuation of 
116.20  unmined iron ore on May 1, 1941, was not less than 40 percent of 
116.21  the assessed valuation of all real property; or 
116.22     (2) it is a municipality in which, on January 1, 1977 or 
116.23  the applicable assessment date, there is a taconite 
116.24  concentrating plant or where taconite is mined or quarried or 
116.25  where there is located an electric generating plant which 
116.26  qualifies as a taconite facility. 
116.27     For purposes of this paragraph, a "tax relief area" does 
116.28  not include a school district whose boundaries are more than 20 
116.29  miles from a taconite mine or plant or in which the assessed 
116.30  valuation of unmined iron ore on May 1, 1941, was less than 40 
116.31  percent of the assessed valuation of all real property. 
116.32     (b) For purposes of section 273.1391, subdivision 2, 
116.33  paragraph (c), and chapter 298, "tax relief area" means the 
116.34  geographic area contained within the boundaries of a school 
116.35  district which contains a municipality that meets the following 
116.36  qualifications: 
117.1      (1) it is a municipality in which the assessed valuation of 
117.2   unmined iron ore on May 1, 1941, was not less than 40 percent of 
117.3   the assessed valuation of all real property; or 
117.4      (2) it is a municipality in which, on January 1, 1977, or 
117.5   the applicable assessment date, there is a taconite 
117.6   concentrating plant or where taconite is mined or quarried or 
117.7   where there is located an electric generating plant which 
117.8   qualifies as a taconite facility. 
117.9      [EFFECTIVE DATE.] This section is effective for taxes and 
117.10  aids payable and expenditures authorized in 2002 and thereafter. 
117.11     Sec. 5.  Minnesota Statutes 2000, section 273.135, 
117.12  subdivision 1, is amended to read: 
117.13     Subdivision 1.  The property tax to be paid in respect to 
117.14  property taxable within a tax relief area as defined in section 
117.15  273.134, paragraph (a), on homestead property, as otherwise 
117.16  determined by law and regardless of the market value of the 
117.17  property, for all purposes shall be reduced in the amount 
117.18  prescribed by subdivision 2, subject to the limitations 
117.19  contained therein. 
117.20     [EFFECTIVE DATE.] This section is effective for taxes 
117.21  payable in 2002 and thereafter. 
117.22     Sec. 6.  Minnesota Statutes 2000, section 273.135, 
117.23  subdivision 2, is amended to read: 
117.24     Subd. 2.  The amount of the reduction authorized by 
117.25  subdivision 1 shall be: 
117.26     (a) In the case of property located within a tax relief 
117.27  area as defined under section 273.134, paragraph (a), that is 
117.28  within the boundaries of a municipality which meets the 
117.29  qualifications prescribed in section 273.134, paragraph (a), 66 
117.30  percent of the tax, provided that the reduction shall not exceed 
117.31  the maximum amounts specified in clause paragraph (c).  
117.32     (b) In the case of property located within the boundaries 
117.33  of a school district which qualifies as a tax relief area under 
117.34  section 273.134, paragraph (a), but which is outside the 
117.35  boundaries of a municipality which meets the qualifications 
117.36  prescribed in section 273.134, paragraph (a), 57 percent of the 
118.1   tax, provided that the reduction shall not exceed the maximum 
118.2   amounts specified in clause paragraph (c).  
118.3      (c) The maximum reduction of the tax is $315.10 on property 
118.4   described in clause paragraph (a) and $289.80 on property 
118.5   described in clause paragraph (b). 
118.6      [EFFECTIVE DATE.] This section is effective for taxes 
118.7   payable in 2002 and thereafter. 
118.8      Sec. 7.  Minnesota Statutes 2000, section 273.136, 
118.9   subdivision 2, is amended to read: 
118.10     Subd. 2.  The commissioner of revenue shall determine, not 
118.11  later than April 1 of each year, the amount of reduction 
118.12  resulting from section 273.135 in each county containing a tax 
118.13  relief area as defined by section 273.134, paragraph (b), basing 
118.14  determinations on a review of abstracts of tax lists submitted 
118.15  by the county auditors pursuant to section 275.29.  The 
118.16  commissioner may make changes in the abstracts of tax lists as 
118.17  deemed necessary.  The commissioner of revenue, after such 
118.18  review, shall submit to the St. Louis county auditor, on or 
118.19  before April 15, the amount of the first half payment payable 
118.20  hereunder and on or before September 15 the amount of the second 
118.21  half payment.  
118.22     [EFFECTIVE DATE.] This section is effective for taxes 
118.23  payable in 2002 and thereafter. 
118.24     Sec. 8.  Minnesota Statutes 2000, section 273.1391, 
118.25  subdivision 2, is amended to read: 
118.26     Subd. 2.  The amount of the reduction authorized by 
118.27  subdivision 1 shall be: 
118.28     (a) In the case of property located within a school 
118.29  district which does not meet the qualifications of section 
118.30  273.134 as a tax relief area, but which is located in a county 
118.31  with a population of less than 100,000 in which taconite is 
118.32  mined or quarried and wherein a school district is located which 
118.33  does meet the qualifications of a tax relief area, and provided 
118.34  that at least 90 percent of the area of the school district 
118.35  which does not meet the qualifications of section 273.134 lies 
118.36  within such county, 57 percent of the tax on qualified property 
119.1   located in the school district that does not meet the 
119.2   qualifications of section 273.134, provided that the amount of 
119.3   said reduction shall not exceed the maximum amounts specified in 
119.4   clause (c) paragraph (d).  The reduction provided by this clause 
119.5   shall only be applicable to property located within the 
119.6   boundaries of the county described therein.  
119.7      (b) In the case of property located within a school 
119.8   district which does not meet the qualifications of section 
119.9   273.134 as a tax relief area, but which is located in a school 
119.10  district in a county containing a city of the first class and a 
119.11  qualifying municipality, but not in a school district containing 
119.12  a city of the first class or adjacent to a school district 
119.13  containing a city of the first class unless the school district 
119.14  so adjacent contains a qualifying municipality, 57 percent of 
119.15  the tax, but not to exceed the maximums specified in clause 
119.16  (c) paragraph (d). 
119.17     (c) In the case of property located within the boundaries 
119.18  of a municipality that meets the qualifications in section 
119.19  273.134, paragraph (b), but not the qualifications in section 
119.20  273.134, paragraph (a), 66 percent of the tax, provided that the 
119.21  reduction shall not exceed $315.10.  In the case of property 
119.22  located within the boundaries of a school district which 
119.23  qualifies as a tax relief area under section 273.134, paragraph 
119.24  (b), but does not qualify as a tax relief area under section 
119.25  273.134, paragraph (a), but which is outside the boundaries of a 
119.26  municipality which meets the qualifications of the preceding 
119.27  sentence, 57 percent of the tax, provided that the reduction 
119.28  shall not exceed the maximum amounts specified in paragraph (d). 
119.29     (d) Except as otherwise provided in this section, the 
119.30  maximum reduction of the tax is $289.80.  
119.31     [EFFECTIVE DATE.] This section is effective for taxes 
119.32  payable in 2002 and thereafter. 
119.33     Sec. 9.  Minnesota Statutes 2000, section 273.1391, 
119.34  subdivision 3, is amended to read: 
119.35     Subd. 3.  Not later than December 1, each county auditor 
119.36  having jurisdiction over one or more tax relief areas defined in 
120.1   subdivision 2 shall certify to the commissioner of revenue an 
120.2   estimate of the total amount of the reduction, determined under 
120.3   subdivision 2, in taxes payable the next succeeding year with 
120.4   respect to all tax relief areas in the auditor's county.  The 
120.5   commissioner shall make payments to the county by May 15 and 
120.6   October 15 annually at the times provided in section 477A.015.  
120.7   The county treasurer shall distribute as part of the May and 
120.8   October settlements the funds received from the commissioner. 
120.9      [EFFECTIVE DATE.] This section is effective for payments in 
120.10  2002 and thereafter. 
120.11     Sec. 10.  Minnesota Statutes 2000, section 276A.01, 
120.12  subdivision 2, is amended to read: 
120.13     Subd. 2.  [AREA.] "Area" means the territory included 
120.14  within all tax relief areas defined in section 273.134, 
120.15  paragraph (b). 
120.16     [EFFECTIVE DATE.] This section is effective for taxes 
120.17  payable in 2002 and thereafter. 
120.18     Sec. 11.  Minnesota Statutes 2000, section 298.018, 
120.19  subdivision 1, is amended to read: 
120.20     Subdivision 1.  [WITHIN TACONITE TAX RELIEF AREA.] The 
120.21  proceeds of the tax paid under sections 298.015 to 298.017 on 
120.22  minerals and energy resources mined or extracted within the 
120.23  taconite tax relief area defined in section 273.134, paragraph 
120.24  (b), shall be allocated as follows: 
120.25     (1) five percent to the city or town within which the 
120.26  minerals or energy resources are mined or extracted; 
120.27     (2) ten percent to the taconite municipal aid account to be 
120.28  distributed as provided in section 298.282; 
120.29     (3) ten percent to the school district within which the 
120.30  minerals or energy resources are mined or extracted; 
120.31     (4) 20 percent to a group of school districts comprised of 
120.32  those school districts wherein the mineral or energy resource 
120.33  was mined or extracted or in which there is a qualifying 
120.34  municipality as defined by section 273.134, paragraph (b), in 
120.35  direct proportion to school district indexes as follows:  for 
120.36  each school district, its pupil units determined under section 
121.1   126C.05 for the prior school year shall be multiplied by the 
121.2   ratio of the average adjusted net tax capacity per pupil unit 
121.3   for school districts receiving aid under this clause as 
121.4   calculated pursuant to chapters 122A, 126C, and 127A for the 
121.5   school year ending prior to distribution to the adjusted net tax 
121.6   capacity per pupil unit of the district.  Each district shall 
121.7   receive that portion of the distribution which its index bears 
121.8   to the sum of the indices for all school districts that receive 
121.9   the distributions; 
121.10     (5) 20 percent to the county within which the minerals or 
121.11  energy resources are mined or extracted; 
121.12     (6) 20 percent to St. Louis county acting as the counties' 
121.13  fiscal agent to be distributed as provided in sections 273.134 
121.14  to 273.136; 
121.15     (7) five percent to the iron range resources and 
121.16  rehabilitation board for the purposes of section 298.22; 
121.17     (8) five percent to the northeast Minnesota economic 
121.18  protection trust fund; and 
121.19     (9) five percent to the taconite environmental protection 
121.20  fund. 
121.21     The proceeds of the tax shall be distributed on July 15 
121.22  each year.  
121.23     Sec. 12.  Minnesota Statutes 2000, section 298.018, 
121.24  subdivision 2, is amended to read: 
121.25     Subd. 2.  [OUTSIDE TACONITE TAX RELIEF AREA.] The proceeds 
121.26  of the tax paid under sections 298.015 to 298.017 on minerals 
121.27  and energy resources mined or extracted outside of the taconite 
121.28  tax relief area defined in section 273.134, paragraph (b), shall 
121.29  be deposited in the general fund. 
121.30     Sec. 13.  Minnesota Statutes 2000, section 298.17, is 
121.31  amended to read: 
121.32     298.17 [OCCUPATION TAXES TO BE APPORTIONED.] 
121.33     All occupation taxes paid by persons, copartnerships, 
121.34  companies, joint stock companies, corporations, and 
121.35  associations, however or for whatever purpose organized, engaged 
121.36  in the business of mining or producing iron ore or other ores, 
122.1   when collected shall be apportioned and distributed in 
122.2   accordance with the Constitution of the state of Minnesota, 
122.3   article X, section 3, in the manner following:  90 percent shall 
122.4   be deposited in the state treasury and credited to the general 
122.5   fund of which four-ninths shall be used for the support of 
122.6   elementary and secondary schools; and ten percent of the 
122.7   proceeds of the tax imposed by this section shall be deposited 
122.8   in the state treasury and credited to the general fund for the 
122.9   general support of the university.  Of the moneys apportioned to 
122.10  the general fund by this section there is annually appropriated 
122.11  and credited to the iron range resources and rehabilitation 
122.12  board account in the special revenue fund an amount equal to 
122.13  that which would have been generated by a 1.5 cent tax imposed 
122.14  by section 298.24 on each taxable ton produced in the preceding 
122.15  calendar year, to be expended for the purposes of section 
122.16  298.22.  The money appropriated pursuant to this section shall 
122.17  be used (1) to provide environmental development grants to local 
122.18  governments located within any county in region 3 as defined in 
122.19  governor's executive order number 60, issued on June 12, 1970, 
122.20  which does not contain a municipality qualifying pursuant to 
122.21  section 273.134, paragraph (b), or (2) to provide economic 
122.22  development loans or grants to businesses located within any 
122.23  such county, provided that the county board or an advisory group 
122.24  appointed by the county board to provide recommendations on 
122.25  economic development shall make recommendations to the iron 
122.26  range resources and rehabilitation board regarding the loans.  
122.27  Payment to the iron range resources and rehabilitation board 
122.28  account shall be made by May 15 annually. 
122.29     Of the money allocated to Koochiching county, one-third 
122.30  must be paid to the Koochiching county economic development 
122.31  commission. 
122.32     Sec. 14.  Minnesota Statutes 2000, section 298.22, 
122.33  subdivision 2, is amended to read: 
122.34     Subd. 2.  [IRON RANGE RESOURCES AND REHABILITATION BOARD.] 
122.35  There is hereby created the iron range resources and 
122.36  rehabilitation board, consisting of 13 members, five of whom are 
123.1   state senators appointed by the subcommittee on committees of 
123.2   the rules committee of the senate, and five of whom are 
123.3   representatives, appointed by the speaker of the house of 
123.4   representatives.  The remaining members shall be appointed one 
123.5   each by the senate majority leader, the speaker of the house of 
123.6   representatives, and the governor and must be nonlegislators who 
123.7   reside in a tax relief area as defined in section 273.134, 
123.8   paragraph (b).  The members shall be appointed in January of 
123.9   every odd-numbered year, except that the initial nonlegislator 
123.10  members shall be appointed by July 1, 1999, and shall serve 
123.11  until January of the next odd-numbered year.  Vacancies on the 
123.12  board shall be filled in the same manner as the original members 
123.13  were chosen.  At least a majority of the legislative members of 
123.14  the board shall be elected from state senatorial or legislative 
123.15  districts in which over 50 percent of the residents reside 
123.16  within a tax relief area as defined in section 273.134, 
123.17  paragraph (b).  All expenditures and projects made by the 
123.18  commissioner of iron range resources and rehabilitation shall be 
123.19  consistent with the priorities established in subdivision 8 and 
123.20  shall first be submitted to the iron range resources and 
123.21  rehabilitation board for approval by a majority of the board of 
123.22  expenditures and projects for rehabilitation purposes as 
123.23  provided by this section, and the method, manner, and time of 
123.24  payment of all funds proposed to be disbursed shall be first 
123.25  approved or disapproved by the board.  The board shall 
123.26  biennially make its report to the governor and the legislature 
123.27  on or before November 15 of each even-numbered year.  The 
123.28  expenses of the board shall be paid by the state from the funds 
123.29  raised pursuant to this section. 
123.30     Sec. 15.  Minnesota Statutes 2000, section 298.22, is 
123.31  amended by adding a subdivision to read: 
123.32     Subd. 8.  [SPENDING PRIORITY.] In making or approving any 
123.33  expenditures on programs or projects, the commissioner and the 
123.34  board shall give the highest priority to programs and projects 
123.35  that target relief to those areas of the taconite tax relief 
123.36  area as defined in section 273.134, paragraph (b), that have the 
124.1   largest percentages of job losses and population losses directly 
124.2   attributable to the economic downturn in the taconite industry 
124.3   since the 1980's.  The commissioner and the board shall compare 
124.4   the 1980 population and employment figures with the 2000 
124.5   population and employment figures, and shall specifically 
124.6   consider the job losses in 2000 and 2001 resulting from the 
124.7   closure of LTV Steel Mining Company, in making or approving 
124.8   expenditures consistent with this subdivision, as well as the 
124.9   areas of residence of persons who suffered job loss for which 
124.10  relief is to be targeted under this subdivision.  This 
124.11  subdivision supersedes any other conflicting provisions of law, 
124.12  and does not preclude the commissioner and the board from making 
124.13  expenditures for programs and projects in other areas. 
124.14     Sec. 16.  Minnesota Statutes 2000, section 298.2211, 
124.15  subdivision 2, is amended to read: 
124.16     Subd. 2.  [AREA OF OPERATION.] Projects undertaken, 
124.17  developed, or financed pursuant to this section shall be located 
124.18  within the tax relief area defined in section 273.134, paragraph 
124.19  (b). 
124.20     Sec. 17.  Minnesota Statutes 2000, section 298.2213, 
124.21  subdivision 3, is amended to read: 
124.22     Subd. 3.  [USE OF MONEY.] The money appropriated under this 
124.23  section may be used to provide loans, loan guarantees, interest 
124.24  buy-downs, and other forms of participation with private sources 
124.25  of financing, provided that a loan to a private enterprise must 
124.26  be for a principal amount not to exceed one-half of the cost of 
124.27  the project for which financing is sought, and the rate of 
124.28  interest on a loan must be no less than the lesser of eight 
124.29  percent or the rate of interest that is three percentage points 
124.30  less than a full faith and credit obligation of the United 
124.31  States government of comparable maturity, at the time that the 
124.32  loan is approved.  
124.33     Money appropriated in this section must be expended only in 
124.34  or for the benefit of the tax relief area defined in section 
124.35  273.134, paragraph (b), and as otherwise provided in this 
124.36  section. 
125.1      Sec. 18.  Minnesota Statutes 2000, section 298.2214, 
125.2   subdivision 1, is amended to read: 
125.3      Subdivision 1.  [CREATION OF COMMITTEE; PURPOSE.] A 
125.4   committee is created to advise the commissioner of iron range 
125.5   resources and rehabilitation on providing higher education 
125.6   programs in the taconite tax relief area defined in section 
125.7   273.134, paragraph (b).  The committee is subject to section 
125.8   15.059. 
125.9      Sec. 19.  Minnesota Statutes 2000, section 298.223, 
125.10  subdivision 1, is amended to read: 
125.11     Subdivision 1.  [CREATION; PURPOSES.] A fund called the 
125.12  taconite environmental protection fund is created for the 
125.13  purpose of reclaiming, restoring and enhancing those areas of 
125.14  northeast Minnesota located within a tax relief area defined in 
125.15  section 273.134, paragraph (b), that are adversely affected by 
125.16  the environmentally damaging operations involved in mining 
125.17  taconite and iron ore and producing iron ore concentrate and for 
125.18  the purpose of promoting the economic development of northeast 
125.19  Minnesota.  The taconite environmental protection fund shall be 
125.20  used for the following purposes: 
125.21     (a) to initiate investigations into matters the iron range 
125.22  resources and rehabilitation board determines are in need of 
125.23  study and which will determine the environmental problems 
125.24  requiring remedial action; 
125.25     (b) reclamation, restoration, or reforestation of minelands 
125.26  not otherwise provided for by state law; 
125.27     (c) local economic development projects including 
125.28  construction of sewer and water systems, and other public works 
125.29  located within a tax relief area defined in section 273.134, 
125.30  paragraph (b); 
125.31     (d) monitoring of mineral industry related health problems 
125.32  among mining employees. 
125.33     Sec. 20.  Minnesota Statutes 2000, section 298.225, 
125.34  subdivision 1, is amended to read: 
125.35     Subdivision 1.  (a) The distribution of the taconite 
125.36  production tax as provided in section 298.28, subdivisions 2 3 
126.1   to 5, 6, paragraph (b), 7, and 8, shall equal the lesser of the 
126.2   following amounts:  
126.3      (1) the amount distributed pursuant to this section and 
126.4   section 298.28, with respect to 1983 production if the 
126.5   production for the year prior to the distribution year is no 
126.6   less than 42,000,000 35,000,000 taxable tons.  If the production 
126.7   is less than 42,000,000 35,000,000 taxable tons, the amount of 
126.8   the distributions shall be reduced proportionately at the rate 
126.9   of two 2.4 percent for each 1,000,000 tons, or part of 1,000,000 
126.10  tons by which the production is less than 42,000,000 35,000,000 
126.11  tons; or 
126.12     (2)(i) for the distributions made pursuant to section 
126.13  298.28, subdivisions 4, paragraphs (b) and (c), and 6, paragraph 
126.14  (c), 40.5 percent of the amount distributed pursuant to this 
126.15  section and section 298.28, with respect to 1983 production; 
126.16     (ii) for the distributions made pursuant to section 298.28, 
126.17  subdivision 5, paragraphs (b) and (d), 75 percent of the amount 
126.18  distributed pursuant to this section and section 298.28, with 
126.19  respect to 1983 production.  
126.20     (b) The distribution of the taconite production tax as 
126.21  provided in section 298.28, subdivision 2, shall equal the 
126.22  following amount: 
126.23     (1) if the production for the year prior to the 
126.24  distribution year is at least 35,000,000 taxable tons, the 
126.25  amount distributed pursuant to this section and section 298.28, 
126.26  with respect to 1999 production; or 
126.27     (2) if the production for the year prior to the 
126.28  distribution year is less than 35,000,000 taxable tons, the 
126.29  amount distributed pursuant to this section and section 298.28 
126.30  with respect to 1999 production, reduced proportionately at the 
126.31  rate of 2.4 percent for each 1,000,000 tons or part of 1,000,000 
126.32  tons by which the production is less than 35,000,000 tons. 
126.33     [EFFECTIVE DATE; RETROACTIVE APPLICATION.] This section is 
126.34  effective for distributions in 2001 and thereafter.  For the 
126.35  distribution paid in February 2001 only, as soon as practicable 
126.36  after the date of final enactment of this act, the commissioner 
127.1   of iron range resources and rehabilitation shall pay two-thirds 
127.2   of any additional amounts required under this section from the 
127.3   taconite environmental protection fund and one-third of any 
127.4   additional amounts required under this section from the 
127.5   northeast Minnesota economic protection trust fund, as directed 
127.6   by the commissioner of revenue. 
127.7      Sec. 21.  Minnesota Statutes 2000, section 298.24, 
127.8   subdivision 1, is amended to read: 
127.9      Subdivision 1.  (a) For concentrate produced in 1999 2001, 
127.10  2002, and 2003, there is imposed upon taconite and iron 
127.11  sulphides, and upon the mining and quarrying thereof, and upon 
127.12  the production of iron ore concentrate therefrom, and upon the 
127.13  concentrate so produced, a tax of $2.141 $2.173 per gross ton of 
127.14  merchantable iron ore concentrate produced therefrom.  
127.15     (b) For concentrates produced in 2000 2004 and subsequent 
127.16  years, the tax rate shall be equal to the preceding year's tax 
127.17  rate plus an amount equal to the preceding year's tax rate 
127.18  multiplied by the percentage increase in the implicit price 
127.19  deflator from the fourth quarter of the second preceding year to 
127.20  the fourth quarter of the preceding year.  "Implicit price 
127.21  deflator" means the implicit price deflator for the gross 
127.22  domestic product prepared by the bureau of economic analysis of 
127.23  the United States Department of Commerce.  
127.24     (c) On concentrates produced in 1997 and thereafter, an 
127.25  additional tax is imposed equal to three cents per gross ton of 
127.26  merchantable iron ore concentrate for each one percent that the 
127.27  iron content of the product exceeds 72 percent, when dried at 
127.28  212 degrees Fahrenheit. 
127.29     (d) The tax shall be imposed on the average of the 
127.30  production for the current year and the previous two years.  The 
127.31  rate of the tax imposed will be the current year's tax rate.  
127.32  This clause shall not apply in the case of the closing of a 
127.33  taconite facility if the property taxes on the facility would be 
127.34  higher if this clause and section 298.25 were not applicable.  
127.35     (e) If the tax or any part of the tax imposed by this 
127.36  subdivision is held to be unconstitutional, a tax 
128.1   of $2.141 $2.173 per gross ton of merchantable iron ore 
128.2   concentrate produced shall be imposed.  
128.3      (f) Consistent with the intent of this subdivision to 
128.4   impose a tax based upon the weight of merchantable iron ore 
128.5   concentrate, the commissioner of revenue may indirectly 
128.6   determine the weight of merchantable iron ore concentrate 
128.7   included in fluxed pellets by subtracting the weight of the 
128.8   limestone, dolomite, or olivine derivatives or other basic flux 
128.9   additives included in the pellets from the weight of the 
128.10  pellets.  For purposes of this paragraph, "fluxed pellets" are 
128.11  pellets produced in a process in which limestone, dolomite, 
128.12  olivine, or other basic flux additives are combined with 
128.13  merchantable iron ore concentrate.  No subtraction from the 
128.14  weight of the pellets shall be allowed for binders, mineral and 
128.15  chemical additives other than basic flux additives, or moisture. 
128.16     (g)(1) Notwithstanding any other provision of this 
128.17  subdivision, for the first two years of a plant's production of 
128.18  direct reduced ore, no tax is imposed under this section.  As 
128.19  used in this paragraph, "direct reduced ore" is ore that results 
128.20  in a product that has an iron content of at least 75 percent.  
128.21  For the third year of a plant's production of direct reduced 
128.22  ore, the rate to be applied to direct reduced ore is 25 percent 
128.23  of the rate otherwise determined under this subdivision.  For 
128.24  the fourth such production year, the rate is 50 percent of the 
128.25  rate otherwise determined under this subdivision; for the fifth 
128.26  such production year, the rate is 75 percent of the rate 
128.27  otherwise determined under this subdivision; and for all 
128.28  subsequent production years, the full rate is imposed. 
128.29     (2) Subject to clause (1), production of direct reduced ore 
128.30  in this state is subject to the tax imposed by this section, but 
128.31  if that production is not produced by a producer of taconite or 
128.32  iron sulfides, the production of taconite or iron sulfides 
128.33  consumed in the production of direct reduced iron in this state 
128.34  is not subject to the tax imposed by this section on taconite or 
128.35  iron sulfides. 
128.36     Sec. 22.  Minnesota Statutes 2000, section 298.27, is 
129.1   amended to read: 
129.2      298.27 [COLLECTION AND PAYMENT OF TAX.] 
129.3      The taxes provided by section 298.24 shall be paid directly 
129.4   to each eligible county and the iron range resources and 
129.5   rehabilitation board.  The commissioner of revenue shall notify 
129.6   each producer of the amount to be paid each recipient prior to 
129.7   February 15.  Every person subject to taxes imposed by section 
129.8   298.24 shall file a correct report covering the preceding year.  
129.9   The report must contain the information required by the 
129.10  commissioner.  The report shall be filed on or before February 
129.11  1.  A remittance equal to 100 percent of the total tax required 
129.12  to be paid hereunder shall be paid on or before February 24.  On 
129.13  or before February 25, except as otherwise provided in section 
129.14  298.28, the county auditor shall make distribution of the 
129.15  payment received by the county in the manner provided by section 
129.16  298.28.  Reports shall be made and hearings held upon the 
129.17  determination of the tax in accordance with procedures 
129.18  established by the commissioner of revenue.  The commissioner of 
129.19  revenue shall have authority to make reasonable rules as to the 
129.20  form and manner of filing reports necessary for the 
129.21  determination of the tax hereunder, and by such rules may 
129.22  require the production of such information as may be reasonably 
129.23  necessary or convenient for the determination and apportionment 
129.24  of the tax.  All the provisions of the occupation tax law with 
129.25  reference to the assessment and determination of the occupation 
129.26  tax, including all provisions for appeals from or review of the 
129.27  orders of the commissioner of revenue relative thereto, but not 
129.28  including provisions for refunds, are applicable to the taxes 
129.29  imposed by section 298.24 except in so far as inconsistent 
129.30  herewith.  If any person subject to section 298.24 shall fail to 
129.31  make the report provided for in this section at the time and in 
129.32  the manner herein provided, the commissioner of revenue shall in 
129.33  such case, upon information possessed or obtained, ascertain the 
129.34  kind and amount of ore mined or produced and thereon find and 
129.35  determine the amount of the tax due from such person.  There 
129.36  shall be added to the amount of tax due a penalty for failure to 
130.1   report on or before February 1, which penalty shall equal ten 
130.2   percent of the tax imposed and be treated as a part thereof. 
130.3      If any person responsible for making a tax payment at the 
130.4   time and in the manner herein provided fails to do so, there 
130.5   shall be imposed a penalty equal to ten percent of the amount so 
130.6   due, which penalty shall be treated as part of the tax due. 
130.7      In the case of any underpayment of the tax payment required 
130.8   herein, there may be added and be treated as part of the tax due 
130.9   a penalty equal to ten percent of the amount so underpaid. 
130.10     A person having a liability of $120,000 or more during a 
130.11  calendar year must remit all liabilities by means of a funds 
130.12  transfer as defined in section 336.4A-104, paragraph (a).  The 
130.13  funds transfer payment date, as defined in section 336.4A-401, 
130.14  must be on or before the date the tax is due.  If the date the 
130.15  tax is due is not a funds transfer business day, as defined in 
130.16  section 336.4A-105, paragraph (a), clause (4), the payment date 
130.17  must be on or before the funds transfer business day next 
130.18  following the date the tax is due. 
130.19     Sec. 23.  Minnesota Statutes 2000, section 298.28, 
130.20  subdivision 1, is amended to read: 
130.21     Subdivision 1.  [DISTRIBUTION.] The proceeds of the taxes 
130.22  collected under section 298.24, except the tax collected under 
130.23  section 298.24, subdivision 2, shall, upon certification of the 
130.24  commissioner of revenue, be allocated under subdivisions 2 to 
130.25  12, except as otherwise provided in subdivision 4, paragraph 
130.26  (f), subdivision 6, paragraph (e), and subdivision 11, paragraph 
130.27  (d). 
130.28     Sec. 24.  Minnesota Statutes 2000, section 298.28, 
130.29  subdivision 3, is amended to read: 
130.30     Subd. 3.  [CITIES; TOWNS.] (a) 12.5 cents per taxable ton, 
130.31  less any amount distributed under subdivision 8, and paragraph 
130.32  (b), must be allocated to the taconite municipal aid account to 
130.33  be distributed as provided in section 298.282. 
130.34     (b) An amount must be allocated to towns or cities that is 
130.35  annually certified by the county auditor of a county containing 
130.36  a taconite tax relief area as defined in section 273.134, 
131.1   paragraph (b), within which there is (1) an organized township 
131.2   if, as of January 2, 1982, more than 75 percent of the assessed 
131.3   valuation of the township consists of iron ore or (2) a city if, 
131.4   as of January 2, 1980, more than 75 percent of the assessed 
131.5   valuation of the city consists of iron ore.  
131.6      (c) The amount allocated under paragraph (b) will be the 
131.7   portion of a township's or city's certified levy equal to the 
131.8   proportion of (1) the difference between 50 percent of January 
131.9   2, 1982, assessed value in the case of a township and 50 percent 
131.10  of the January 2, 1980, assessed value in the case of a city and 
131.11  its current assessed value to (2) the sum of its current 
131.12  assessed value plus the difference determined in (1), provided 
131.13  that the amount distributed shall not exceed $55 per capita in 
131.14  the case of a township or $75 per capita in the case of a city.  
131.15  For purposes of this limitation, population will be determined 
131.16  according to the 1980 decennial census conducted by the United 
131.17  States Bureau of the Census.  If the current assessed value of 
131.18  the township exceeds 50 percent of the township's January 2, 
131.19  1982, assessed value, or if the current assessed value of the 
131.20  city exceeds 50 percent of the city's January 2, 1980, assessed 
131.21  value, this paragraph shall not apply.  For purposes of this 
131.22  paragraph, "assessed value," when used in reference to years 
131.23  other than 1980 or 1982, means the appropriate net tax 
131.24  capacities multiplied by 10.2. 
131.25     Sec. 25.  Minnesota Statutes 2000, section 298.28, 
131.26  subdivision 4, is amended to read: 
131.27     Subd. 4.  [SCHOOL DISTRICTS.] (a) 22.28 cents per taxable 
131.28  ton plus the increase provided in paragraph (d) must be 
131.29  allocated to qualifying school districts to be distributed, 
131.30  based upon the certification of the commissioner of revenue, 
131.31  under paragraphs (b) and (c), except as otherwise provided in 
131.32  paragraph (f). 
131.33     (b) 4.46 cents per taxable ton must be distributed to the 
131.34  school districts in which the lands from which taconite was 
131.35  mined or quarried were located or within which the concentrate 
131.36  was produced.  The distribution must be based on the 
132.1   apportionment formula prescribed in subdivision 2. 
132.2      (c)(i) 17.82 cents per taxable ton, less any amount 
132.3   distributed under paragraph (e), shall be distributed to a group 
132.4   of school districts comprised of those school districts in which 
132.5   the taconite was mined or quarried or the concentrate produced 
132.6   or in which there is a qualifying municipality as defined by 
132.7   section 273.134, paragraph (b), in direct proportion to school 
132.8   district indexes as follows:  for each school district, its 
132.9   pupil units determined under section 126C.05 for the prior 
132.10  school year shall be multiplied by the ratio of the average 
132.11  adjusted net tax capacity per pupil unit for school districts 
132.12  receiving aid under this clause as calculated pursuant to 
132.13  chapters 122A, 126C, and 127A for the school year ending prior 
132.14  to distribution to the adjusted net tax capacity per pupil unit 
132.15  of the district.  Each district shall receive that portion of 
132.16  the distribution which its index bears to the sum of the indices 
132.17  for all school districts that receive the distributions.  
132.18     (ii) Notwithstanding clause (i), each school district that 
132.19  receives a distribution under sections 298.018; 298.23 to 
132.20  298.28, exclusive of any amount received under this clause; 
132.21  298.34 to 298.39; 298.391 to 298.396; 298.405; or any law 
132.22  imposing a tax on severed mineral values that is less than the 
132.23  amount of its levy reduction under section 126C.48, subdivision 
132.24  8, for the second year prior to the year of the distribution 
132.25  shall receive a distribution equal to the difference; the amount 
132.26  necessary to make this payment shall be derived from 
132.27  proportionate reductions in the initial distribution to other 
132.28  school districts under clause (i).  
132.29     (d) Any school district described in paragraph (c) where a 
132.30  levy increase pursuant to section 126C.17, subdivision 9, is 
132.31  authorized by referendum, shall receive a distribution from a 
132.32  fund that receives a distribution in 1998 of 21.3 cents per 
132.33  ton.  On July 15 of 1999, and each year thereafter, the increase 
132.34  over the amount established for the prior year shall be 
132.35  determined according to the increase in the implicit price 
132.36  deflator as provided in section 298.24, subdivision 1.  Each 
133.1   district shall receive the product of: 
133.2      (i) $175 times the pupil units identified in section 
133.3   126C.05, subdivision 1, enrolled in the second previous year or 
133.4   the 1983-1984 school year, whichever is greater, less the 
133.5   product of 1.8 percent times the district's taxable net tax 
133.6   capacity in the second previous year; times 
133.7      (ii) the lesser of: 
133.8      (A) one, or 
133.9      (B) the ratio of the sum of the amount certified pursuant 
133.10  to section 126C.17, subdivision 6, in the previous year, plus 
133.11  the amount certified pursuant to section 126C.17, subdivision 8, 
133.12  in the previous year, plus the referendum aid according to 
133.13  section 126C.17, subdivision 7, for the current year, plus an 
133.14  amount equal to the reduction under section 126C.17, subdivision 
133.15  12, to the product of 1.8 percent times the district's taxable 
133.16  net tax capacity in the second previous year. 
133.17     If the total amount provided by paragraph (d) is 
133.18  insufficient to make the payments herein required then the 
133.19  entitlement of $175 per pupil unit shall be reduced uniformly so 
133.20  as not to exceed the funds available.  Any amounts received by a 
133.21  qualifying school district in any fiscal year pursuant to 
133.22  paragraph (d) shall not be applied to reduce general education 
133.23  aid which the district receives pursuant to section 126C.13 or 
133.24  the permissible levies of the district.  Any amount remaining 
133.25  after the payments provided in this paragraph shall be paid to 
133.26  the commissioner of iron range resources and rehabilitation who 
133.27  shall deposit the same in the taconite environmental protection 
133.28  fund and the northeast Minnesota economic protection trust fund 
133.29  as provided in subdivision 11. 
133.30     Each district receiving money according to this paragraph 
133.31  shall reserve $25 times the number of pupil units in the 
133.32  district.  It may use the money for early childhood programs or 
133.33  for outcome-based learning programs that enhance the academic 
133.34  quality of the district's curriculum.  The outcome-based 
133.35  learning programs must be approved by the commissioner of 
133.36  children, families, and learning. 
134.1      (e) There shall be distributed to any school district the 
134.2   amount which the school district was entitled to receive under 
134.3   section 298.32 in 1975. 
134.4      (f) Notwithstanding anything to the contrary in this 
134.5   subdivision, beginning with the year 2002 distribution, the 
134.6   amount necessary for distributions to school districts under 
134.7   paragraphs (b), (c), and (e) and section 298.225 is annually 
134.8   appropriated, upon certification by the commissioner of revenue, 
134.9   to the commissioner of children, families, and learning from the 
134.10  general fund.  On July 1, the commissioner of children, 
134.11  families, and learning shall distribute the appropriation in the 
134.12  manner provided by section 298.27. 
134.13     Sec. 26.  Minnesota Statutes 2000, section 298.28, 
134.14  subdivision 6, is amended to read: 
134.15     Subd. 6.  [PROPERTY TAX RELIEF.] (a) In 1999, 38.81 2002, 
134.16  35.9 cents per taxable ton, less any amount required to be 
134.17  distributed under paragraphs (b) and (c), and less any amount 
134.18  required to be deducted under paragraph (d), must be allocated 
134.19  to St. Louis county acting as the counties' fiscal agent, to be 
134.20  distributed as provided in sections 273.134 to 273.136. 
134.21     (b) If an electric power plant owned by and providing the 
134.22  primary source of power for a taxpayer mining and concentrating 
134.23  taconite is located in a county other than the county in which 
134.24  the mining and the concentrating processes are conducted, .1875 
134.25  cent per taxable ton of the tax imposed and collected from such 
134.26  taxpayer shall be paid to the county. 
134.27     (c) If an electric power plant owned by and providing the 
134.28  primary source of power for a taxpayer mining and concentrating 
134.29  taconite is located in a school district other than a school 
134.30  district in which the mining and concentrating processes are 
134.31  conducted, .7282 cent per taxable ton of the tax imposed and 
134.32  collected from the taxpayer shall be paid to the school district.
134.33     (d) Two cents per taxable ton must be deducted from the 
134.34  amount allocated to the St. Louis county auditor under paragraph 
134.35  (a). 
134.36     (e) Notwithstanding anything to the contrary in this 
135.1   subdivision, beginning with the year 2002 distribution, the 
135.2   amount necessary for distributions to school districts under 
135.3   paragraph (c) is annually appropriated, upon certification by 
135.4   the commissioner of revenue, to the commissioner of children, 
135.5   families, and learning from the general fund.  On July 1, the 
135.6   commissioner of children, families, and learning shall 
135.7   distribute the appropriation in the manner provided by section 
135.8   298.27. 
135.9      [EFFECTIVE DATE.] This section is effective for 
135.10  distributions in 2002 and thereafter. 
135.11     Sec. 27.  Minnesota Statutes 2000, section 298.28, 
135.12  subdivision 7, is amended to read: 
135.13     Subd. 7.  [IRON RANGE RESOURCES AND REHABILITATION BOARD.] 
135.14  For the 1998 distribution, 6.5 cents per taxable ton shall be 
135.15  paid to the iron range resources and rehabilitation board for 
135.16  the purposes of section 298.22.  That amount shall be increased 
135.17  in 1999 and subsequent years in the same proportion as the 
135.18  increase in the implicit price deflator as provided in section 
135.19  298.24, subdivision 1.  The amount distributed pursuant to this 
135.20  subdivision shall be expended within or for the benefit of a tax 
135.21  relief area defined in section 273.134, paragraph (b).  No part 
135.22  of the fund provided in this subdivision may be used to provide 
135.23  loans for the operation of private business unless the loan is 
135.24  approved by the governor. 
135.25     Sec. 28.  Minnesota Statutes 2000, section 298.28, 
135.26  subdivision 9, is amended to read: 
135.27     Subd. 9.  [MINNESOTA ECONOMIC PROTECTION TRUST FUND.] In 
135.28  1999 and subsequent years, 3.35 cents per taxable ton shall be 
135.29  paid to the northeast Minnesota economic protection trust fund.  
135.30     Sec. 29.  Minnesota Statutes 2000, section 298.28, 
135.31  subdivision 9a, is amended to read: 
135.32     Subd. 9a.  [TACONITE ECONOMIC DEVELOPMENT FUND.] (a) 15.4 
135.33  cents per ton for distributions in 1999, 2000, 2001, and 2002 
135.34  through 2004 must be paid to the taconite economic development 
135.35  fund.  No distribution shall be made under this paragraph in any 
135.36  year in which total industry production falls below 30 million 
136.1   tons. 
136.2      (b) An amount equal to 50 percent of the tax under section 
136.3   298.24 for concentrate sold in the form of pellet chips and 
136.4   fines not exceeding 5/16 inch in size and not including crushed 
136.5   pellets shall be paid to the taconite economic development 
136.6   fund.  The amount paid shall not exceed $700,000 annually for 
136.7   all companies.  If the initial amount to be paid to the fund 
136.8   exceeds this amount, each company's payment shall be prorated so 
136.9   the total does not exceed $700,000. 
136.10     Sec. 30.  Minnesota Statutes 2000, section 298.28, 
136.11  subdivision 9b, is amended to read: 
136.12     Subd. 9b.  [TACONITE ENVIRONMENTAL FUND.] Five Fifteen 
136.13  cents per ton for distributions in 1999, 2000, 2001, and 2002 
136.14  through 2004 must be paid to the taconite environmental fund for 
136.15  use under section 298.2961.  No distribution may be made under 
136.16  this paragraph in any year in which total industry production 
136.17  falls below 30,000,000 tons. 
136.18     Sec. 31.  Minnesota Statutes 2000, section 298.28, 
136.19  subdivision 10, is amended to read: 
136.20     Subd. 10.  [INCREASE.] Beginning with distributions in 
136.21  2000, the amounts amount determined under subdivisions 6, 
136.22  paragraph (a), and subdivision 9 shall be increased in the same 
136.23  proportion as the increase in the implicit price deflator as 
136.24  provided in section 298.24, subdivision 1.  Beginning with 
136.25  distributions in 2003, the amount determined under subdivision 
136.26  6, paragraph (a), shall be increased in the same proportion as 
136.27  the increase in the implicit price deflator as provided in 
136.28  section 298.24, subdivision 1.  
136.29     The distributions per ton determined under subdivisions 5, 
136.30  paragraphs (b) and (d), and 6, paragraph (b), for distribution 
136.31  in 1988 and subsequent years shall be the distribution per ton 
136.32  determined for distribution in 1987.  The distribution per ton 
136.33  under subdivision 6, paragraph (c), for distribution in 2000 and 
136.34  subsequent years shall be 81 percent of the distribution per ton 
136.35  determined for distribution in 1987. 
136.36     [EFFECTIVE DATE.] This section is effective for 
137.1   distributions in 2002 and thereafter. 
137.2      Sec. 32.  Minnesota Statutes 2000, section 298.28, 
137.3   subdivision 11, is amended to read: 
137.4      Subd. 11.  [REMAINDER.] (a) The proceeds of the tax imposed 
137.5   by section 298.24 which remain after the distributions and 
137.6   payments in subdivisions 2 to 10a, as certified by the 
137.7   commissioner of revenue, and paragraphs (b), (c), and (d) have 
137.8   been made, together with interest earned on all money 
137.9   distributed under this section prior to distribution, shall be 
137.10  divided between the taconite environmental protection fund 
137.11  created in section 298.223 and the northeast Minnesota economic 
137.12  protection trust fund created in section 298.292 as follows:  
137.13  Two-thirds to the taconite environmental protection fund and 
137.14  one-third to the northeast Minnesota economic protection trust 
137.15  fund.  The proceeds shall be placed in the respective special 
137.16  accounts.  In this paragraph, the terms "distributions and 
137.17  payments" and "all money distributed under this section" do not 
137.18  mean distributions from general fund appropriations. 
137.19     (b) There shall be distributed to each city, town, and 
137.20  county the amount that it received under section 294.26 in 
137.21  calendar year 1977; provided, however, that the amount 
137.22  distributed in 1981 to the unorganized territory number 2 of 
137.23  Lake county and the town of Beaver Bay based on the 
137.24  between-terminal trackage of Erie Mining Company will be 
137.25  distributed in 1982 and subsequent years to the unorganized 
137.26  territory number 2 of Lake county and the towns of Beaver Bay 
137.27  and Stony River based on the miles of track of Erie Mining 
137.28  Company in each taxing district. 
137.29     (c) There shall be distributed to the iron range resources 
137.30  and rehabilitation board the amounts it received in 1977 under 
137.31  section 298.22.  The amount distributed under this paragraph 
137.32  shall be expended within or for the benefit of the tax relief 
137.33  area defined in section 273.134, paragraph (b). 
137.34     (d) There shall be distributed to each school district 81 
137.35  percent of the amount that it received under section 294.26 in 
137.36  calendar year 1977, except that, beginning with the year 2002 
138.1   distribution, the amount necessary for distributions to school 
138.2   districts is annually appropriated, upon certification by the 
138.3   commissioner of revenue, to the commissioner of children, 
138.4   families, and learning from the general fund.  On July 1, the 
138.5   commissioner of children, families, and learning shall 
138.6   distribute the appropriation as provided in this paragraph. 
138.7      Sec. 33.  Minnesota Statutes 2000, section 298.28, 
138.8   subdivision 15, is amended to read: 
138.9      Subd. 15.  [DISTRIBUTION OF DELAYED PAYMENTS.] 
138.10  Notwithstanding any other provision of this section or any other 
138.11  law, if payment of taxes collected under section 298.24 is 
138.12  delayed past the due date because the taxpayer is a debtor in a 
138.13  pending bankruptcy proceeding, the amount paid shall be 
138.14  distributed as follows when received:  
138.15     (1) 50 percent to St. Louis county acting as the counties' 
138.16  fiscal agent, to be distributed as provided in sections 273.134 
138.17  to 273.136; 
138.18     (2) 25 percent to the northeast Minnesota economic 
138.19  protection trust fund; and 
138.20     (3) 25 percent to the taconite environmental protection 
138.21  fund; 
138.22  except that for payments of taxes relating to production year 
138.23  2000 only, the amount paid shall be deposited in the general 
138.24  fund.  
138.25     Sec. 34.  Minnesota Statutes 2000, section 298.282, 
138.26  subdivision 1, is amended to read: 
138.27     Subdivision 1.  The amount deposited with the county as 
138.28  provided in section 298.28, subdivision 3, shall must be 
138.29  distributed as provided by this section, among the 
138.30  municipalities comprising a tax relief area under section 
138.31  273.134, paragraph (b), as amended hereby, each being herein 
138.32  referred to in this section as a qualifying municipality. 
138.33     Sec. 35.  Minnesota Statutes 2000, section 298.292, 
138.34  subdivision 2, is amended to read: 
138.35     Subd. 2.  [USE OF MONEY.] Money in the northeast Minnesota 
138.36  economic protection trust fund may be used for the following 
139.1   purposes:  
139.2      (1) to provide loans, loan guarantees, interest buy-downs 
139.3   and other forms of participation with private sources of 
139.4   financing, but a loan to a private enterprise shall be for a 
139.5   principal amount not to exceed one-half of the cost of the 
139.6   project for which financing is sought, and the rate of interest 
139.7   on a loan shall be no less than the lesser of eight percent or 
139.8   an interest rate three percentage points less than a full faith 
139.9   and credit obligation of the United States government of 
139.10  comparable maturity, at the time that the loan is approved; 
139.11     (2) to fund reserve accounts established to secure the 
139.12  payment when due of the principal of and interest on bonds 
139.13  issued pursuant to section 298.2211; 
139.14     (3) to pay in periodic payments or in a lump sum payment 
139.15  any or all of the interest on bonds issued pursuant to chapter 
139.16  474 for the purpose of constructing, converting, or retrofitting 
139.17  heating facilities in connection with district heating systems 
139.18  or systems utilizing alternative energy sources; and 
139.19     (4) to invest in a venture capital fund or enterprise that 
139.20  will provide capital to other entities that are engaging in, or 
139.21  that will engage in, projects or programs that have the purposes 
139.22  set forth in subdivision 1.  No investments may be made in a 
139.23  venture capital fund or enterprise unless at least two other 
139.24  unrelated investors make investments of at least $500,000 in the 
139.25  venture capital fund or enterprise, and the investment by the 
139.26  northeast Minnesota economic protection trust fund may not 
139.27  exceed the amount of the largest investment by an unrelated 
139.28  investor in the venture capital fund or enterprise.  For 
139.29  purposes of this subdivision, an "unrelated investor" is a 
139.30  person or entity that is not related to the entity in which the 
139.31  investment is made or to any individual who owns more than 40 
139.32  percent of the value of the entity, in any of the following 
139.33  relationships:  spouse, parent, child, sibling, employee, or 
139.34  owner of an interest in the entity that exceeds ten percent of 
139.35  the value of all interests in it.  For purposes of determining 
139.36  the limitations under this clause, the amount of investments 
140.1   made by an investor other than the northeast Minnesota economic 
140.2   protection trust fund is the sum of all investments made in the 
140.3   venture capital fund or enterprise during the period beginning 
140.4   one year before the date of the investment by the northeast 
140.5   Minnesota economic protection trust fund.  
140.6      Money from the trust fund shall be expended only in or for 
140.7   the benefit of the tax relief area defined in section 273.134, 
140.8   paragraph (b). 
140.9      Sec. 36.  Minnesota Statutes 2000, section 298.293, is 
140.10  amended to read: 
140.11     298.293 [EXPENDING FUNDS.] 
140.12     The funds provided by section 298.28, subdivision 11, 
140.13  relating to the northeast Minnesota economic protection trust 
140.14  fund, except money expended pursuant to Laws 1982, Second 
140.15  Special Session, chapter 2, sections 8 to 14, shall be expended 
140.16  only in an amount that does not exceed the sum of the net 
140.17  interest, dividends, and earnings arising from the investment of 
140.18  the trust for the preceding 12 calendar months from the date of 
140.19  the authorization plus, for fiscal year 1983, $10,000,000 from 
140.20  the corpus of the fund.  The funds may be spent only in or for 
140.21  the benefit of those areas that are tax relief areas as defined 
140.22  in section 273.134, paragraph (b).  If during any year the 
140.23  taconite property tax account under sections 273.134 to 273.136 
140.24  does not contain sufficient funds to pay the property tax relief 
140.25  specified in Laws 1977, chapter 423, article X, section 4, there 
140.26  is appropriated from this trust fund to the relief account 
140.27  sufficient funds to pay the relief specified in Laws 1977, 
140.28  chapter 423, article X, section 4. 
140.29     Sec. 37.  Minnesota Statutes 2000, section 298.296, 
140.30  subdivision 2, is amended to read: 
140.31     Subd. 2.  [EXPENDITURE OF FUNDS.] Before January 1, 
140.32  2002 2020, funds may be expended on projects and for 
140.33  administration of the trust fund only from the net interest, 
140.34  earnings, and dividends arising from the investment of the trust 
140.35  at any time, including net interest, earnings, and dividends 
140.36  that have arisen prior to July 13, 1982, plus $10,000,000 made 
141.1   available for use in fiscal year 1983, except that any amount 
141.2   required to be paid out of the trust fund to provide the 
141.3   property tax relief specified in Laws 1977, chapter 423, article 
141.4   X, section 4, and to make school bond payments and payments to 
141.5   recipients of taconite production tax proceeds pursuant to 
141.6   section 298.225, may be taken from the corpus of the trust.  
141.7   Additionally, upon recommendation by the board, up to 
141.8   $13,000,000 from the corpus of the trust may be made available 
141.9   for use as provided in subdivision 4, and up to $10,000,000 from 
141.10  the corpus of the trust may be made available for use as 
141.11  provided in section 298.2961.  On and after January 1, 2002 
141.12  2020, funds may be expended on projects and for administration 
141.13  from any assets of the trust.  Annual administrative costs, not 
141.14  including detailed engineering expenses for the projects, shall 
141.15  not exceed five percent of the net interest, dividends, and 
141.16  earnings arising from the trust in the preceding fiscal year.  
141.17     Principal and interest received in repayment of loans made 
141.18  pursuant to this section, and earnings on other investments made 
141.19  under section 298.292, subdivision 2, clause (4), shall be 
141.20  deposited in the state treasury and credited to the trust.  
141.21  These receipts are appropriated to the board for the purposes of 
141.22  sections 298.291 to 298.298. 
141.23     Sec. 38.  Minnesota Statutes 2000, section 298.2961, is 
141.24  amended to read: 
141.25     298.2961 [PRODUCER GRANTS.] 
141.26     Subdivision 1.  [APPROPRIATION.] (a) $10,000,000 is 
141.27  appropriated from the northeast Minnesota economic protection 
141.28  trust fund to a special account in the taconite area 
141.29  environmental protection fund for grants or loans to producers 
141.30  on a project-by-project basis as provided in this section. 
141.31     (b) The proceeds of the tax designated under section 
141.32  298.28, subdivision 9b, are appropriated for grants and loans to 
141.33  producers on a project-by-project basis as provided in this 
141.34  section. 
141.35     Subd. 2.  [PROJECTS; APPROVAL.] (a) Projects funded must be 
141.36  for: 
142.1      (1) environmentally unique reclamation projects; or 
142.2      (2) pit or plant maintenance, repairs, expansions, or 
142.3   modernizations other than for a value added iron products 
142.4   plant that extend the life of the plant. 
142.5      (b) To be proposed by the board, a project must be approved 
142.6   by at least eight iron range resources and rehabilitation board 
142.7   members.  The money for a project may be spent only upon 
142.8   approval of the project by the governor.  The board may submit 
142.9   supplemental projects for approval at any time. 
142.10     (c) The board may require that it receive an equity 
142.11  percentage in any project to which it contributes under this 
142.12  section.  
142.13     Sec. 39.  Minnesota Statutes 2000, section 298.298, is 
142.14  amended to read: 
142.15     298.298 [LONG-RANGE PLAN.] 
142.16     Consistent with the policy established in sections 298.291 
142.17  to 298.298, the iron range resources and rehabilitation board 
142.18  shall prepare and present to the governor and the legislature by 
142.19  January 1, 1984 a long-range plan for the use of the northeast 
142.20  Minnesota economic protection trust fund for the economic 
142.21  development and diversification of the tax relief area defined 
142.22  in section 273.134, paragraph (b).  The iron range resources and 
142.23  rehabilitation board shall, before November 15 of each even 
142.24  numbered year, prepare a report to the governor and legislature 
142.25  updating and revising this long-range plan and reporting on the 
142.26  iron range resources and rehabilitation board's progress on 
142.27  those matters assigned to it by law.  After January 1, 1984, no 
142.28  project shall be approved by the iron range resources and 
142.29  rehabilitation board which is not consistent with the goals and 
142.30  objectives established in the long-range plan. 
142.31     Sec. 40.  Minnesota Statutes 2000, section 298.75, 
142.32  subdivision 1, is amended to read: 
142.33     Subdivision 1.  [DEFINITIONS.] Except as may otherwise be 
142.34  provided, the following words, when used in this section, shall 
142.35  have the meanings herein ascribed to them.  
142.36     (1) "Aggregate material" shall mean nonmetallic natural 
143.1   mineral aggregate including, but not limited to sand, silica 
143.2   sand, gravel, building stone, crushed rock, limestone, and 
143.3   granite, and borrow, but only if the borrow is transported on a 
143.4   public road, street, or highway.  Aggregate material shall not 
143.5   include dimension stone and dimension granite.  Aggregate 
143.6   material must be measured or weighed after it has been extracted 
143.7   from the pit, quarry, or deposit.  
143.8      (2) "Person" shall mean any individual, firm, partnership, 
143.9   corporation, organization, trustee, association, or other entity.
143.10     (3) "Operator" shall mean any person engaged in the 
143.11  business of removing aggregate material from the surface or 
143.12  subsurface of the soil, for the purpose of sale, either directly 
143.13  or indirectly, through the use of the aggregate material in a 
143.14  marketable product or service.  
143.15     (4) "Extraction site" shall mean a pit, quarry, or deposit 
143.16  containing aggregate material and any contiguous property to the 
143.17  pit, quarry, or deposit which is used by the operator for 
143.18  stockpiling the aggregate material.  
143.19     (5) "Importer" shall mean any person who buys aggregate 
143.20  material produced from a county not listed in paragraph (6) or 
143.21  another state and causes the aggregate material to be imported 
143.22  into a county in this state which imposes a tax on aggregate 
143.23  material.  
143.24     (6) "County" shall mean the counties of Pope, Stearns, 
143.25  Benton, Sherburne, Carver, Scott, Dakota, Le Sueur, Kittson, 
143.26  Marshall, Pennington, Red Lake, Polk, Norman, Mahnomen, Clay, 
143.27  Becker, Carlton, St. Louis, Rock, Murray, Wilkin, Big Stone, 
143.28  Sibley, Hennepin, Washington, Chisago, and Ramsey.  County also 
143.29  means any other county whose board has voted after public 
143.30  hearing to impose the tax required under this section and has 
143.31  registered with the commissioner to impose the tax. 
143.32     [EFFECTIVE DATE.] This section is effective the day 
143.33  following final enactment. 
143.34     Sec. 41.  Minnesota Statutes 2000, section 298.75, 
143.35  subdivision 2, is amended to read: 
143.36     Subd. 2.  A county shall impose upon every importer and 
144.1   operator a production tax equal to ten 21 cents per cubic yard 
144.2   or seven 15 cents per ton of aggregate material removed except 
144.3   that the county board may decide not to impose this tax if it 
144.4   determines that in the previous year operators removed less than 
144.5   20,000 tons or 14,000 cubic yards of aggregate material from 
144.6   that county.  The tax shall be imposed on aggregate material 
144.7   produced in the county when the aggregate material is 
144.8   transported from the extraction site or sold.  When aggregate 
144.9   material is stored in a stockpile within the state of Minnesota 
144.10  and a public highway, road or street is not used for 
144.11  transporting the aggregate material, the tax shall be imposed 
144.12  either when the aggregate material is sold, or when it is 
144.13  transported from the stockpile site, or when it is used from the 
144.14  stockpile, whichever occurs first.  The tax shall be imposed on 
144.15  an importer when the aggregate material is imported into the 
144.16  county that imposes the tax.  
144.17     If the aggregate material is transported directly from the 
144.18  extraction site to a waterway, railway, or another mode of 
144.19  transportation other than a highway, road or street, the tax 
144.20  imposed by this section shall be apportioned equally between the 
144.21  county where the aggregate material is extracted and the county 
144.22  to which the aggregate material is originally transported.  If 
144.23  that destination is not located in Minnesota, then the county 
144.24  where the aggregate material was extracted shall receive all of 
144.25  the proceeds of the tax.  
144.26     [EFFECTIVE DATE.] This section is effective for aggregate 
144.27  material sold, imported, transported, or used from a stockpile 
144.28  after June 30, 2002. 
144.29     Sec. 42.  Minnesota Statutes 2000, section 298.75, 
144.30  subdivision 7, is amended to read: 
144.31     Subd. 7.  (a) All money collected as taxes under this 
144.32  section shall be deposited in the county treasury and 
144.33  credited as follows, for expenditure by the county 
144.34  board: according to this subdivision. 
144.35     (b) The county auditor may retain an annual administrative 
144.36  fee of up to five percent of the total taxes collected in any 
145.1   year. 
145.2      (c) The balance of the taxes, after any deduction under 
145.3   paragraph (b), shall be credited as follows: 
145.4      (a) Sixty (1) 57.5 percent to the county road and bridge 
145.5   fund for expenditure for the maintenance, construction and 
145.6   reconstruction of roads, highways and bridges; 
145.7      (b) Thirty (2) 27.5 percent to the road and bridge fund of 
145.8   those towns as determined by the county board and to the general 
145.9   fund or other designated fund of those cities as determined by 
145.10  the county board city or town in which the mine is located, or 
145.11  to the county if unorganized, to be expended for maintenance, 
145.12  construction and reconstruction of roads, highways and bridges; 
145.13  and 
145.14     (c) Ten (3) 15 percent to a special reserve fund which is 
145.15  hereby established, for expenditure for the restoration 
145.16  reclamation of abandoned pits, quarries, or deposits located 
145.17  upon public and tax forfeited lands within the county. 
145.18     If there are no abandoned pits, quarries, or deposits 
145.19  located upon public or tax forfeited lands within the county, 
145.20  this portion of the tax shall may be deposited in the county 
145.21  road and bridge fund for expenditure for the maintenance, 
145.22  construction, and reconstruction of roads, highways, and bridges 
145.23  or may be used for any other unmet reclamation need.  
145.24  Reclamation shall be prioritized as follows:  reclamation of 
145.25  pits and quarries on public or tax-forfeited land, reclamation 
145.26  of abandoned pits or quarries on private land, and reclamation 
145.27  of active pits and quarries on private land. 
145.28     [EFFECTIVE DATE.] This section is effective July 1, 2002. 
145.29     Sec. 43.  Minnesota Statutes 2000, section 471.58, is 
145.30  amended to read: 
145.31     471.58 [RANGE ASSOCIATION OF MUNICIPALITIES AND SCHOOLS; 
145.32  MEMBERSHIP.] 
145.33     For the purpose of providing an areawide approach to 
145.34  problems which demand coordinated and cooperative actions and 
145.35  which are common to those areas of northeast Minnesota affected 
145.36  by operations involved in mining iron ore and taconite and 
146.1   producing concentrate therefrom, and for the purpose of 
146.2   promoting the general welfare and economic development of the 
146.3   cities, towns and school districts within the iron ranges area 
146.4   of northeast Minnesota, any city, town or school district in 
146.5   which the net tax capacity consists in part of iron ore, or 
146.6   lands containing taconite or semitaconite or which is located in 
146.7   whole or part in the tax relief area defined by section 273.134, 
146.8   paragraph (b), may pay annual dues in the range association of 
146.9   municipalities and schools.  The association may sue, be sued, 
146.10  intervene and act in a civil action in which the outcome of the 
146.11  action will have an effect upon the interest of any of its 
146.12  members. 
146.13     Sec. 44.  [STATE AID.] 
146.14     Notwithstanding Minnesota Statutes, chapter 298, or any 
146.15  other law to the contrary, a city, township, county, school 
146.16  district, the taconite property tax relief fund, the iron range 
146.17  resources and rehabilitation board, the range association of 
146.18  municipalities and schools, the taconite environmental 
146.19  protection fund, and the northeast Minnesota economic protection 
146.20  trust receiving distributions under Minnesota Statutes, sections 
146.21  298.225, 298.28, and 298.282, shall each receive aid in 2001 
146.22  equal to the difference between the distributions it receives 
146.23  under Minnesota Statutes, sections 298.225, 298.28, and 298.282, 
146.24  and the distributions it would have received in 2001 under 
146.25  Minnesota Statutes 2000, sections 298.225, 298.28, and 298.282, 
146.26  if those distributions had been based on the average of the 
146.27  production for 1998, 1999, and 2000 and disregarded the 
146.28  bankruptcy of one of the taxpayers.  A sum sufficient to make 
146.29  distributions of aid under this section is appropriated from the 
146.30  general fund to the commissioner of revenue, who must make the 
146.31  distributions of this aid on or before July 1, 2001. 
146.32                             ARTICLE 9
146.33                  SUSTAINABLE FOREST INCENTIVE ACT
146.34     Section 1.  Minnesota Statutes 2000, section 88.49, 
146.35  subdivision 5, is amended to read: 
146.36     Subd. 5.  [CANCELLATION.] Upon the failure of the owner 
147.1   faithfully to fulfill and perform such contract or any provision 
147.2   thereof, or any requirement of sections 88.47 to 88.53, or any 
147.3   rule adopted by the commissioner thereunder, the commissioner 
147.4   may cancel the contract in the manner herein provided.  The 
147.5   commissioner shall give to the owner, in the manner prescribed 
147.6   in section 88.48, subdivision 4, 60 days' notice of a hearing 
147.7   thereon at which the owner may appear and show cause, if any, 
147.8   why the contract should not be canceled.  The commissioner shall 
147.9   thereupon determine whether the contract should be canceled and 
147.10  make an order to that effect.  Notice of the commissioner's 
147.11  determination and the making of the order shall be given to the 
147.12  owner in the manner provided in section 88.48, subdivision 4.  
147.13  On determining that the contract should be canceled and no 
147.14  appeal therefrom be taken, the commissioner shall send notice 
147.15  thereof to the auditor of the county and to the town clerk of 
147.16  the town affected and file with the recorder a certified copy of 
147.17  the order, who shall forthwith note the cancellation upon the 
147.18  record thereof, and thereupon the land therein described shall 
147.19  cease to be an auxiliary forest and, together with the timber 
147.20  thereon, become liable to all taxes and assessments that 
147.21  otherwise would have been levied against it had it never been an 
147.22  auxiliary forest from the time of the making of the contract, 
147.23  any provisions of the statutes of limitation to the contrary 
147.24  notwithstanding, less the amount of taxes paid under the 
147.25  provisions of section 88.51, subdivision 1, together with 
147.26  interest on such taxes and assessments at six percent per annum, 
147.27  but without penalties. 
147.28     The commissioner may in like manner and with like effect 
147.29  cancel the contract upon written application of the owner. 
147.30     The commissioner shall cancel any contract if the owner has 
147.31  made successful application under sections 270.31 to 270.39 
147.32  inclusive 290C.01 to 290C.11, the Minnesota Tree Growth Tax Law 
147.33  Sustainable Forest Incentive Act, and has paid to the county 
147.34  treasurer the difference between the amount which would have 
147.35  been paid had the land under contract been subject to the 
147.36  Minnesota Tree Growth Tax Law and the Sustainable Forest 
148.1   Incentive Act from the date of the filing of the contract and 
148.2   the amount actually paid under section 88.51, subdivisions 1 and 
148.3   2.  This tax difference must be calculated based on the years 
148.4   the lands would have been taxed under the Tree Growth Tax Law 
148.5   and the Sustainable Forest Incentive Act.  The sustainable 
148.6   forest tax difference is net of the incentive payment of section 
148.7   290C.07.  If the amount which would have been paid, had the land 
148.8   under contract been under the Minnesota Tree Growth Tax Law and 
148.9   the Sustainable Forest Incentive Act from the date of the filing 
148.10  of the contract, is less than the amount actually paid under the 
148.11  contract, the cancellation shall be made without further payment 
148.12  by the owner. 
148.13     When the execution of any contract creating an auxiliary 
148.14  forest shall have been procured through fraud or deception 
148.15  practiced upon the county board or the commissioner or any other 
148.16  person or body representing the state, it may be canceled upon 
148.17  suit brought by the attorney general at the direction of the 
148.18  commissioner.  This cancellation shall have the same effect as 
148.19  the cancellation of a contract by the commissioner. 
148.20     Sec. 2.  Minnesota Statutes 2000, section 88.49, 
148.21  subdivision 9a, is amended to read: 
148.22     Subd. 9a.  [LAND TRADES WITH GOVERNMENTAL UNITS.] 
148.23  Notwithstanding subdivisions 6 and 9, or section 88.491, 
148.24  subdivision 2, if an owner trades land under auxiliary forest 
148.25  contract for land owned by a governmental unit and the owner 
148.26  agrees to use the land received in trade from the governmental 
148.27  unit for the production of forest products, upon resolution of 
148.28  the county board, no taxes and assessments shall be levied 
148.29  against the land traded, except that any current or delinquent 
148.30  annual taxes or yield taxes due on that land while it was under 
148.31  the auxiliary forest provision must be paid prior to the land 
148.32  exchange.  The land received from the governmental unit in the 
148.33  land trade automatically qualifies for inclusion in the Tree 
148.34  Growth Tax Law Sustainable Forest Incentive Act. 
148.35     Sec. 3.  Minnesota Statutes 2000, section 88.491, 
148.36  subdivision 2, is amended to read: 
149.1      Subd. 2.  [EFFECT OF EXPIRED CONTRACT.] When auxiliary 
149.2   forest contracts expire, or prior to expiration by mutual 
149.3   agreement between the land owner and the appropriate county 
149.4   office, the lands previously covered by an auxiliary forest 
149.5   contract automatically qualify for inclusion in the Tree Growth 
149.6   Tax Law under the provisions of the Sustainable Forest Incentive 
149.7   Act; provided that when such lands are included in the Tree 
149.8   Growth Tax Law Sustainable Forest Incentive Act prior to 
149.9   expiration of the auxiliary forest contract they will be 
149.10  transferred and a tax paid as provided in accordance with the 
149.11  provisions of section 88.49, subdivision 5, upon application and 
149.12  inclusion in the sustainable forest incentive program.  The land 
149.13  owner shall pay taxes in an amount equal to the difference 
149.14  between: 
149.15     (1) the sum of: 
149.16     (i) the amount which would have been paid from the date of 
149.17  the filing of the contract had the land under contract been 
149.18  subject to the Minnesota Tree Growth Tax Law from the date of 
149.19  the filing of the contract and; plus 
149.20     (ii) beginning with taxes payable in 2003, the taxes that 
149.21  would have been paid if the land had been enrolled in the 
149.22  sustainable forest incentive program; and 
149.23     (2) the amount actually paid under section 88.51, 
149.24  subdivisions 1 and 2. 
149.25     Sec. 4.  Minnesota Statutes 2000, section 270A.03, 
149.26  subdivision 7, is amended to read: 
149.27     Subd. 7.  [REFUND.] "Refund" means an individual income tax 
149.28  refund or political contribution refund, pursuant to chapter 
149.29  290, or a property tax credit or refund, pursuant to chapter 
149.30  290A, or a sustainable forest tax payment to a claimant under 
149.31  chapter 290C.  
149.32     For purposes of this chapter, lottery prizes, as set forth 
149.33  in section 349A.08, subdivision 8, and amounts granted to 
149.34  persons by the legislature on the recommendation of the joint 
149.35  senate-house of representatives subcommittee on claims shall be 
149.36  treated as refunds. 
150.1      In the case of a joint property tax refund payable to 
150.2   spouses under chapter 290A, the refund shall be considered as 
150.3   belonging to each spouse in the proportion of the total refund 
150.4   that equals each spouse's proportion of the total income 
150.5   determined under section 290A.03, subdivision 3.  In the case of 
150.6   a joint income tax refund under chapter 289A, the refund shall 
150.7   be considered as belonging to each spouse in the proportion of 
150.8   the total refund that equals each spouse's proportion of the 
150.9   total taxable income determined under section 290.01, 
150.10  subdivision 29.  The commissioner shall remit the entire refund 
150.11  to the claimant agency, which shall, upon the request of the 
150.12  spouse who does not owe the debt, determine the amount of the 
150.13  refund belonging to that spouse and refund the amount to that 
150.14  spouse.  For court fines, fees, and surcharges and court-ordered 
150.15  restitution under section 611A.04, subdivision 2, the notice 
150.16  provided by the commissioner of revenue under section 270A.07, 
150.17  subdivision 2, paragraph (b), serves as the appropriate legal 
150.18  notice to the spouse who does not owe the debt. 
150.19     [EFFECTIVE DATE.] This section is effective for refunds in 
150.20  2003 and thereafter. 
150.21     Sec. 5.  [290C.01] [PURPOSE.] 
150.22     It is the policy of this state to promote sustainable 
150.23  forest resource management on the state's public and private 
150.24  lands.  Recognizing that private forests comprise approximately 
150.25  one-half of the state forest land resources, that healthy and 
150.26  robust forest land provides significant benefits to the state of 
150.27  Minnesota, and that ad valorem property taxes represent a 
150.28  significant annual cost that can discourage long-term forest 
150.29  management investments, this chapter, hereafter referred to as 
150.30  the "Sustainable Forest Incentive Act," is enacted to encourage 
150.31  the state's private forest landowners to make a long-term 
150.32  commitment to sustainable forest management. 
150.33     [EFFECTIVE DATE.] This section is effective for taxes 
150.34  levied in 2002, payable in 2003, and thereafter. 
150.35     Sec. 6.  [290C.02] [DEFINITIONS.] 
150.36     Subdivision 1.  [APPLICATION.] When used in sections 
151.1   290C.01 to 290C.11, the terms in this section have the meanings 
151.2   given them. 
151.3      Subd. 2.  [APPROVED PLAN WRITERS.] "Approved plan writers" 
151.4   are natural resource professionals who are self-employed, 
151.5   employed by private companies or individuals, nonprofit 
151.6   organizations, local units of government, or public agencies, 
151.7   and who are approved by the commissioner of natural resources.  
151.8   Persons determined to be certified foresters by the Society of 
151.9   American Foresters shall be deemed to meet the standards 
151.10  required under this subdivision.  The commissioner of natural 
151.11  resources shall issue a unique identification number to each 
151.12  approved planner. 
151.13     Subd. 3.  [CLAIMANT.] "Claimant" means a person, as that 
151.14  term is defined in section 290.01, subdivision 2, who owns 
151.15  forest land in Minnesota and files an application authorized by 
151.16  the Sustainable Forest Incentive Act.  No more than one claimant 
151.17  is entitled to a payment under this chapter with respect to any 
151.18  tract, parcel, or piece of land enrolled under this chapter.  
151.19  When enrolled forest land is owned by two or more persons, the 
151.20  owners must determine between them which person may claim the 
151.21  payments provided under sections 290C.01 to 290C.11. 
151.22     Subd. 4.  [COMMISSIONER.] "Commissioner" means the 
151.23  commissioner of revenue. 
151.24     Subd. 5.  [CURRENT USE VALUE.] "Current use value" means 
151.25  the statewide average annual income per acre, multiplied by 90 
151.26  percent and divided by the capitalization rate determined under 
151.27  subdivision 9.  The statewide net annual income shall be a 
151.28  weighted average based on the most recent data as of July 1 of 
151.29  the computation year on stumpage prices and annual tree growth 
151.30  rates and acreage by cover type provided by the department of 
151.31  natural resources and the United States Department of 
151.32  Agriculture Forest Service North Central Research Station. 
151.33     Subd. 6.  [FOREST LAND.] "Forest land" means land 
151.34  containing a minimum of 20 contiguous acres for which the owner 
151.35  has implemented a forest management plan that was prepared or 
151.36  updated within the past ten years by an approved plan writer.  
152.1   For purposes of this subdivision, acres are considered to be 
152.2   contiguous even if they are separated by a road, waterway, 
152.3   railroad track, or other similar intervening property.  At least 
152.4   50 percent of the contiguous acreage must meet the definition of 
152.5   forest land in section 88.01, subdivision 7.  For the purposes 
152.6   of sections 290C.01 to 209C.11, forest land does not include (i) 
152.7   land used for residential or agricultural purposes, (ii) land 
152.8   enrolled in the reinvest in Minnesota program, a state or 
152.9   federal conservation reserve or easement reserve program under 
152.10  sections 103F.501 to 103F.531, the Minnesota agricultural 
152.11  property tax law under section 273.111, or land subject to 
152.12  agricultural land preservation controls or restrictions as 
152.13  defined in section 40A.02 or under the Metropolitan Agricultural 
152.14  Preserves Act under chapter 473H, or (iii) land improved with a 
152.15  structure, pavement, sewer, campsite, or any road, other than a 
152.16  township road, used for purposes not prescribed in the forest 
152.17  management plan. 
152.18     Subd. 7.  [FOREST MANAGEMENT PLAN.] "Forest management plan"
152.19  means a written document providing a framework for site-specific 
152.20  healthy, productive, and sustainable forest resources.  A forest 
152.21  management plan must include at least the following:  (i) 
152.22  owner-specific forest management goals for the property 
152.23  including, when available, goals for individual cover types; 
152.24  (ii) a reliable field inventory of the individual forest cover 
152.25  types, their age, and density; (iii) a description of the soil 
152.26  type and quality; (iv) an aerial photo and/or map of the 
152.27  vegetation and other natural features of the property clearly 
152.28  indicating the boundaries of the property and of the forest 
152.29  land; (v) the proposed future conditions of the property; (vi) 
152.30  prescriptions to meet proposed future conditions of the 
152.31  property; (vii) a recommended timetable for implementing the 
152.32  prescribed activities; and (viii) a legal description of the 
152.33  parcels encompassing the parcels included in the plan.  All 
152.34  management activities prescribed in a plan must be in accordance 
152.35  with the recommended timber harvesting and forest management 
152.36  guidelines.  The commissioner of natural resources shall provide 
153.1   a framework for plan content and updating and revising plans. 
153.2      Subd. 8.  [TIMBER HARVESTING AND FOREST MANAGEMENT 
153.3   GUIDELINES.] "Timber harvesting and forest management guidelines"
153.4   means guidelines developed under section 89A.05 and adopted by 
153.5   the Minnesota forest resources council in 1998. 
153.6      Subd. 9.  [CAPITALIZATION RATE.] By July 1 of each year, 
153.7   the commissioner shall determine a statewide capitalization rate 
153.8   for use under this chapter.  The rate shall be the average 
153.9   annual effective interest rate for St. Paul on new loans under 
153.10  the Farm Credit Bank system calculated under section 
153.11  2032A(e)(7)(A) of the Internal Revenue Code. 
153.12     [EFFECTIVE DATE.] This section is effective for taxes 
153.13  levied in 2002, payable in 2003, and thereafter. 
153.14     Sec. 7.  [290C.03] [ELIGIBILITY REQUIREMENTS.] 
153.15     (a) Property may be enrolled in the sustainable forest 
153.16  incentive program under this chapter if all of the following 
153.17  conditions are met: 
153.18     (1) property consists of at least 20 contiguous acres and 
153.19  at least 50 percent of the land must meet the definition of 
153.20  forest land in section 88.01, subdivision 7, during the 
153.21  enrollment; 
153.22     (2) a forest management plan for the property must be 
153.23  prepared by an approved plan writer and implemented during the 
153.24  period in which the land is enrolled; 
153.25     (3) timber harvesting and forest management guidelines must 
153.26  be used in conjunction with any timber harvesting or forest 
153.27  management activities conducted on the land during the period in 
153.28  which the land is enrolled; 
153.29     (4) the property must be enrolled for a minimum of eight 
153.30  years; 
153.31     (5) there are no delinquent property taxes on the property; 
153.32  and 
153.33     (6) claimants enrolling more than 1,920 acres in the 
153.34  sustainable forest incentive program must allow year-round, 
153.35  nonmotorized access to fish and wildlife resources on enrolled 
153.36  land except within one-fourth mile of a permanent dwelling or 
154.1   during periods of high fire hazard as determined by the 
154.2   commissioner of natural resources. 
154.3      (b) Claimants required to allow access under paragraph (a), 
154.4   clause (6), do not by that action: 
154.5      (1) extend any assurance that the land is safe for any 
154.6   purpose; 
154.7      (2) confer upon the person the legal status of an invitee 
154.8   or licensee to whom a duty of care is owed; or 
154.9      (3) assume responsibility for or incur liability for any 
154.10  injury to the person or property caused by an act or omission of 
154.11  the person. 
154.12     [EFFECTIVE DATE.] This section is effective for taxes 
154.13  levied in 2002, payable in 2003, and thereafter. 
154.14     Sec. 8.  [290C.04] [APPLICATIONS.] 
154.15     (a) A landowner may apply to enroll forest land for the 
154.16  sustainable forest incentive program under this chapter.  The 
154.17  claimant must complete, sign, and submit an application to the 
154.18  commissioner by September 30 in order for the land to become 
154.19  eligible beginning in the next year.  The application shall be 
154.20  on a form prescribed by the commissioner and must include the 
154.21  information the commissioner deems necessary.  At a minimum, the 
154.22  application must show the following information for the land and 
154.23  the claimant:  (i) the claimant's social security number or 
154.24  state or federal business tax registration number and date of 
154.25  birth, (ii) the claimant's address, (iii) the claimant's 
154.26  signature, (iv) the county's parcel identification numbers for 
154.27  the tax parcels that completely contain the claimant's forest 
154.28  land that is sought to be enrolled, (v) the number of acres 
154.29  eligible for enrollment in the program, (vi) the approved plan 
154.30  writer's signature and identification number, and (vii) proof, 
154.31  in a form specified by the commissioner, that the claimant has 
154.32  executed and acknowledged in the manner required by law for a 
154.33  deed, and recorded, a covenant that the land is not and shall 
154.34  not be developed in a manner inconsistent with the requirements 
154.35  and conditions of this chapter.  The covenant shall state in 
154.36  writing that the covenant is binding on the claimant and the 
155.1   claimant's successor or assignee, and that it runs with the land 
155.2   for a period of not less than eight years.  The commissioner 
155.3   shall specify the form of the covenant and provide copies upon 
155.4   request.  The covenant must include a legal description that 
155.5   encompasses all the forest land that the claimant wishes to 
155.6   enroll under this section or the certificate of title number for 
155.7   that land if it is registered land. 
155.8      (b) In all cases, the commissioner shall notify the 
155.9   claimant within 90 days after receipt of a completed application 
155.10  that either the land has or has not been approved for enrollment.
155.11  The claimant for which the application is denied may, within 60 
155.12  days of receipt of a notice of denial, appeal the denial to the 
155.13  commissioner. 
155.14     (c) Within 45 days after the denial of an application, or 
155.15  within 45 days after the denial of an appeal, the commissioner 
155.16  shall execute and acknowledge a document releasing the land from 
155.17  the covenant required under this chapter.  The document must be 
155.18  mailed to the claimant and is entitled to be recorded. 
155.19     (d) The social security numbers collected from individuals 
155.20  under this section are private data as provided in section 13.49.
155.21  The state or federal business tax registration number and date 
155.22  of birth data collected under this section are also private data 
155.23  but may be shared with county assessors for purposes of tax 
155.24  administration and with county treasurers for purposes of the 
155.25  revenue recapture under chapter 270A. 
155.26     [EFFECTIVE DATE.] This section is effective for taxes 
155.27  levied in 2002, payable in 2003, and thereafter. 
155.28     Sec. 9.  [290C.05] [ANNUAL CERTIFICATION.] 
155.29     On or before July 1 of each year, beginning with the year 
155.30  after the claimant has received an approved application, the 
155.31  commissioner shall send each claimant enrolled under the 
155.32  sustainable forest incentive program a certification form.  The 
155.33  claimant must sign the certification, attesting that the 
155.34  requirements and conditions for continued enrollment in the 
155.35  program are currently being met, and must return the signed 
155.36  certification form to the commissioner by August 15 of that same 
156.1   year.  Failure to return an annual certification form by the due 
156.2   date shall result in removal of the lands from the provisions of 
156.3   the sustainable forest incentive program, and the imposition of 
156.4   any applicable removal penalty.  The claimant may appeal the 
156.5   removal and any associated penalty according to the procedures 
156.6   and within the time allowed under this chapter. 
156.7      [EFFECTIVE DATE.] This section is effective for taxes 
156.8   levied in 2002, payable in 2003, and thereafter. 
156.9      Sec. 10.  [290C.06] [CALCULATION OF AVERAGE ESTIMATED 
156.10  MARKET VALUE; TIMBERLAND.] 
156.11     The commissioner shall annually calculate a statewide 
156.12  average estimated market value per acre for class 2b timberland 
156.13  under section 273.13, subdivision 23, paragraph (b). 
156.14     [EFFECTIVE DATE.] This section is effective for taxes 
156.15  levied in 2002, payable in 2003, and thereafter. 
156.16     Sec. 11.  [290C.07] [CALCULATION OF INCENTIVE PAYMENT.] 
156.17     An approved claimant under the sustainable forest incentive 
156.18  program is eligible to receive an annual payment.  The payment 
156.19  shall equal the greater of: 
156.20     (1) the difference between the property tax that would be 
156.21  paid on the property using the previous year's statewide average 
156.22  total township tax rate and the class rate for class 2b 
156.23  timberland under section 273.13, subdivision 23, paragraph (b), 
156.24  if the property were valued at (i) the average statewide 
156.25  timberland market value per acre calculated under section 
156.26  290C.06, and (ii) the average statewide timberland current use 
156.27  value per acre calculated under section 290C.02, subdivision 5; 
156.28     (2) two-thirds of the property tax amount determined by 
156.29  using the previous year's statewide average total township tax 
156.30  rate, the estimated market value per acre as calculated in 
156.31  section 290C.06, and the class rate for 2b timberland under 
156.32  section 273.13, subdivision 23, paragraph (b); or 
156.33     (3) $1.50 per acre for each acre enrolled in the 
156.34  sustainable forest incentive program. 
156.35     [EFFECTIVE DATE.] This section is effective for taxes 
156.36  levied in 2002, payable in 2003, and thereafter. 
157.1      Sec. 12.  [290C.08] [ANNUAL INCENTIVE PAYMENT; 
157.2   APPROPRIATION.] 
157.3      Subdivision 1.  [ANNUAL PAYMENT.] An incentive payment for 
157.4   each acre of enrolled land will be made annually to each 
157.5   claimant in the amount determined under section 290C.07.  The 
157.6   incentive payment shall be paid on or before October 1 each year 
157.7   based on the certifications due August 15 of that year.  
157.8   Interest at the annual rate determined under section 270.75 
157.9   shall be included with any incentive payment not paid by the 
157.10  later of October 1 of the year the certification was due, or 45 
157.11  days after the completed certification was returned or filed if 
157.12  the commissioner accepts a certification filed after August 15 
157.13  of the taxes payable year as the resolution of an appeal. 
157.14     Subd. 2.  [APPROPRIATION.] The amount necessary to make the 
157.15  payments under this section is annually appropriated to the 
157.16  commissioner from the general fund. 
157.17     [EFFECTIVE DATE.] This section is effective for taxes 
157.18  levied in 2002, payable in 2003, and thereafter. 
157.19     Sec. 13.  [290C.09] [REMOVAL FOR PROPERTY TAX DELINQUENCY.] 
157.20     The commissioner shall immediately remove any property 
157.21  enrolled in the sustainable forest incentive program for which 
157.22  taxes are determined to be delinquent as provided in chapter 279 
157.23  and shall notify the claimant of such action.  Lands terminated 
157.24  from the sustainable forest incentive program under this section 
157.25  are not entitled to any payments provided in this chapter and 
157.26  are subject to removal penalties prescribed in section 290C.11.  
157.27  The claimant has 90 days from the receipt of notice from the 
157.28  commissioner under this section to pay the delinquent taxes.  If 
157.29  the delinquent taxes are paid within this 90-day period, the 
157.30  lands shall be reinstated in the program as if they had not been 
157.31  withdrawn and without the payment of a penalty. 
157.32     [EFFECTIVE DATE.] This section is effective for taxes 
157.33  levied in 2002, payable in 2003, and thereafter. 
157.34     Sec. 14.  [290C.10] [WITHDRAWAL PROCEDURES.] 
157.35     An approved claimant under the sustainable forest incentive 
157.36  program for a minimum of four years may notify the commissioner 
158.1   of the intent to terminate enrollment.  Within 90 days of 
158.2   receipt of notice to terminate enrollment, the commissioner 
158.3   shall inform the claimant in writing, acknowledging receipt of 
158.4   this notice and indicating the effective date of termination 
158.5   from the sustainable forest incentive program.  Termination of 
158.6   enrollment in the sustainable forest incentive program occurs on 
158.7   January 1 of the fifth calendar year that begins after receipt 
158.8   by the commissioner of the termination notice.  After the 
158.9   commissioner issues an effective date of termination, a claimant 
158.10  wishing to continue the property's enrollment in the sustainable 
158.11  forest incentive program beyond the termination date must apply 
158.12  for enrollment as prescribed in section 290C.04.  A claimant who 
158.13  withdraws a parcel of land from this program may not reenroll 
158.14  the parcel for a period of three years.  Within 45 days after 
158.15  the termination date, the commissioner shall execute and 
158.16  acknowledge a document releasing the land from the covenant 
158.17  required under this chapter.  The document must be mailed to the 
158.18  claimant and is entitled to be recorded.  The commissioner may 
158.19  allow early withdrawal from the Sustainable Forest Incentive Act 
158.20  without penalty in cases of condemnation for a public purpose 
158.21  notwithstanding the provisions of this section. 
158.22     [EFFECTIVE DATE.] This section is effective for taxes 
158.23  levied in 2002, payable in 2003, and thereafter. 
158.24     Sec. 15.  [290C.11] [PENALTIES FOR REMOVAL.] 
158.25     (a) If the commissioner determines that property enrolled 
158.26  in the sustainable forest incentive program is in violation of 
158.27  the conditions for enrollment as specified in section 290C.03, 
158.28  the commissioner shall notify the claimant of the intent to 
158.29  remove all enrolled land from the sustainable forest incentive 
158.30  program.  The claimant has 90 days to appeal this determination. 
158.31  The appeal must be made in writing to the commissioner, who 
158.32  shall, within 60 days, notify the claimant as to the outcome of 
158.33  the appeal.  Within 60 days after the commissioner denies an 
158.34  appeal, or within 120 days after the commissioner received a 
158.35  written appeal if the commissioner has not made a determination 
158.36  in that time, the owner may appeal to tax court under chapter 
159.1   271 as if the appeal is from an order of the commissioner. 
159.2      (b) If the commissioner determines the property is to be 
159.3   removed from the sustainable forest incentive program, the 
159.4   claimant is liable for payment to the commissioner in the amount 
159.5   equal to the payments received under this chapter for the 
159.6   previous four-year period, plus interest.  The claimant has 90 
159.7   days to satisfy the payment for removal of land from the 
159.8   sustainable forest incentive program under this section.  If the 
159.9   penalty is not paid within the 90-day period under paragraph 
159.10  (a), the commissioner shall certify the amount to the county 
159.11  auditor for collection as a part of the general ad valorem real 
159.12  property taxes on the land in the following taxes payable year.  
159.13     [EFFECTIVE DATE.] This section is effective for taxes 
159.14  levied in 2002, payable in 2003, and thereafter. 
159.15     Sec. 16.  [REPEALER.] 
159.16     Minnesota Statutes 2000, sections 270.31; 270.32; 270.33; 
159.17  270.34; 270.35; 270.36; 270.37; 270.38; and 270.39, are repealed.
159.18     [EFFECTIVE DATE.] This section is effective for taxes 
159.19  levied in 2002, payable in 2003, and thereafter. 
159.20                             ARTICLE 10
159.21                           MISCELLANEOUS 
159.22     Section 1.  [12.38] [STATE AGENCIES; TEMPORARY WAIVER OF 
159.23  FEES.] 
159.24     Notwithstanding any law to the contrary, a state agency as 
159.25  defined in section 16B.01, subdivision 2, with the approval of 
159.26  the governor, may waive fees that would otherwise be charged for 
159.27  agency services.  The waiver of fees must be confined to 
159.28  geographic areas within a disaster or emergency area as defined 
159.29  in section 273.123, subdivision 1, and to the minimum periods of 
159.30  time necessary to deal with the emergency situation.  The 
159.31  requirements of section 14.05, subdivision 4, do not apply to a 
159.32  waiver made under this section.  The agency must promptly report 
159.33  the reasons for and the impact of any suspended fees to the 
159.34  chairs of the legislative committees that oversee the policy and 
159.35  budgetary affairs of the agency.  
159.36     [EFFECTIVE DATE.] This section is effective the day 
160.1   following final enactment and applies to disasters or 
160.2   emergencies as defined in Minnesota Statutes, section 273.123, 
160.3   subdivision 1, that occur after March 30, 2001. 
160.4      Sec. 2.  Minnesota Statutes 2000, section 297E.02, 
160.5   subdivision 1, is amended to read: 
160.6      Subdivision 1.  [IMPOSITION.] A tax is imposed on all 
160.7   lawful gambling other than (1) pull-tab deals or games; (2) 
160.8   tipboard deals or games; and (3) items listed in section 
160.9   297E.01, subdivision 8, clauses (4) and (5), at the rate of 8.5 
160.10  7.5 percent on the gross receipts as defined in section 297E.01, 
160.11  subdivision 8, less prizes actually paid.  The tax imposed by 
160.12  this subdivision is in lieu of the tax imposed by section 
160.13  297A.02 and all local taxes and license fees except a fee 
160.14  authorized under section 349.16, subdivision 8, or a tax 
160.15  authorized under subdivision 5.  
160.16     The tax imposed under this subdivision is payable by the 
160.17  organization or party conducting, directly or indirectly, the 
160.18  gambling.  
160.19     [EFFECTIVE DATE.] This section is effective July 1, 2001. 
160.20     Sec. 3.  Minnesota Statutes 2000, section 297E.02, 
160.21  subdivision 4, is amended to read: 
160.22     Subd. 4.  [PULL-TAB AND TIPBOARD TAX.] (a) A tax is imposed 
160.23  on the sale of each deal of pull-tabs and tipboards sold by a 
160.24  distributor.  The rate of the tax is 1.7 1.5 percent of the 
160.25  ideal gross of the pull-tab or tipboard deal.  The sales tax 
160.26  imposed by chapter 297A on the sale of the pull-tabs and 
160.27  tipboards by the distributor is imposed on the retail sales 
160.28  price less the tax imposed by this subdivision.  The retail sale 
160.29  of pull-tabs or tipboards by the organization is exempt from 
160.30  taxes imposed by chapter 297A and is exempt from all local taxes 
160.31  and license fees except a fee authorized under section 349.16, 
160.32  subdivision 8.  
160.33     (b) The liability for the tax imposed by this section is 
160.34  incurred when the pull-tabs and tipboards are delivered by the 
160.35  distributor to the customer or to a common or contract carrier 
160.36  for delivery to the customer, or when received by the customer's 
161.1   authorized representative at the distributor's place of 
161.2   business, regardless of the distributor's method of accounting 
161.3   or the terms of the sale.  
161.4      The tax imposed by this subdivision is imposed on all sales 
161.5   of pull-tabs and tipboards, except the following:  
161.6      (1) sales to the governing body of an Indian tribal 
161.7   organization for use on an Indian reservation; 
161.8      (2) sales to distributors licensed under the laws of 
161.9   another state or of a province of Canada, as long as all 
161.10  statutory and regulatory requirements are met in the other state 
161.11  or province; 
161.12     (3) sales of promotional tickets as defined in section 
161.13  349.12; and 
161.14     (4) pull-tabs and tipboards sold to an organization that 
161.15  sells pull-tabs and tipboards under the exemption from licensing 
161.16  in section 349.166, subdivision 2.  A distributor shall require 
161.17  an organization conducting exempt gambling to show proof of its 
161.18  exempt status before making a tax-exempt sale of pull-tabs or 
161.19  tipboards to the organization.  A distributor shall identify, on 
161.20  all reports submitted to the commissioner, all sales of 
161.21  pull-tabs and tipboards that are exempt from tax under this 
161.22  subdivision.  
161.23     (c) A distributor having a liability of $120,000 or more 
161.24  during a fiscal year ending June 30 must remit all liabilities 
161.25  in the subsequent calendar year by a funds transfer as defined 
161.26  in section 336.4A-104, paragraph (a).  The funds transfer 
161.27  payment date, as defined in section 336.4A-401, must be on or 
161.28  before the date the tax is due.  If the date the tax is due is 
161.29  not a funds transfer business day, as defined in section 
161.30  336.4A-105, paragraph (a), clause (4), the payment date must be 
161.31  on or before the funds transfer business day next following the 
161.32  date the tax is due. 
161.33     (d) Any customer who purchases deals of pull-tabs or 
161.34  tipboards from a distributor may file an annual claim for a 
161.35  refund or credit of taxes paid pursuant to this subdivision for 
161.36  unsold pull-tab and tipboard tickets.  The claim must be filed 
162.1   with the commissioner on a form prescribed by the commissioner 
162.2   by March 20 of the year following the calendar year for which 
162.3   the refund is claimed.  The refund must be filed as part of the 
162.4   customer's February monthly return.  The refund or credit is 
162.5   equal to 1.7 1.5 percent of the face value of the unsold 
162.6   pull-tab or tipboard tickets, provided that the refund or credit 
162.7   will be 1.75 1.6 percent of the face value of the unsold 
162.8   pull-tab or tipboard tickets for claims for a refund or credit 
162.9   of taxes filed on the February 2001 2002 monthly return.  The 
162.10  refund claimed will be applied as a credit against tax owing 
162.11  under this chapter on the February monthly return.  If the 
162.12  refund claimed exceeds the tax owing on the February monthly 
162.13  return, that amount will be refunded.  The amount refunded will 
162.14  bear interest pursuant to section 270.76 from 90 days after the 
162.15  claim is filed.  
162.16     [EFFECTIVE DATE.] This section is effective July 1, 2001. 
162.17     Sec. 4.  Minnesota Statutes 2000, section 297E.02, 
162.18  subdivision 6, is amended to read: 
162.19     Subd. 6.  [COMBINED RECEIPTS TAX.] In addition to the taxes 
162.20  imposed under subdivisions 1 and 4, a tax is imposed on the 
162.21  combined receipts of the organization.  As used in this section, 
162.22  "combined receipts" is the sum of the organization's gross 
162.23  receipts from lawful gambling less gross receipts directly 
162.24  derived from the conduct of bingo, raffles, and paddlewheels, as 
162.25  defined in section 297E.01, subdivision 8, for the fiscal year.  
162.26  The combined receipts of an organization are subject to a tax 
162.27  computed according to the following schedule: 
162.28     If the combined receipts for the          The tax is:
162.29     fiscal year are:
162.30     Not over $500,000                   zero
162.31     Over $500,000, but not over
162.32     $700,000                            1.7 1.5 percent of the 
162.33                                         amount over $500,000, but 
162.34                                         not over $700,000
162.35     Over $700,000, but not over
162.36     $900,000                            $3,400 $3,000 plus 3.4 3.0
163.1                                          percent of the amount 
163.2                                          over $700,000, but 
163.3                                          not over $900,000
163.4      Over $900,000                       $10,200 $9,000 plus 5.1 
163.5                                          4.5 percent of the amount 
163.6                                          over $900,000
163.7      [EFFECTIVE DATE.] This section is effective July 1, 2001. 
163.8      Sec. 5.  Minnesota Statutes 2000, section 297H.06, is 
163.9   amended by adding a subdivision to read: 
163.10     Subd. 3.  [CONSTRUCTION DEBRIS IN A DISASTER AREA.] The tax 
163.11  is not imposed on construction debris generated from repair and 
163.12  demolition activities caused by a disaster occurring in a 
163.13  presidentially declared disaster area, provided that the 
163.14  construction debris is disposed of in a waste management 
163.15  facility designated by the commissioner of the pollution control 
163.16  agency.  To be exempt, the debris must be disposed of within 18 
163.17  months following the presidential declaration. 
163.18     [EFFECTIVE DATE.] This section is effective for disaster 
163.19  areas declarations made after April 15, 2001. 
163.20     Sec. 6.  [471.699] [EXTENSION OF FINANCIAL REPORT FILING 
163.21  TIME LIMITS; DISASTER AREAS.] 
163.22     The time limit by which financial reports are required to 
163.23  be filed under section 471.697 or 471.698, is extended by 90 
163.24  days for any city or town located in whole or in part within a 
163.25  disaster or emergency area as defined in section 273.123, 
163.26  subdivision 1, if the time period for which the area is so 
163.27  designated includes at least one of the 30 days immediately 
163.28  preceding the time limit. 
163.29     [EFFECTIVE DATE.] This section is effective the day 
163.30  following final enactment. 
163.31     Sec. 7.  [APPROPRIATION; TAXPAYER ASSISTANCE.] 
163.32     (a) $150,000 is appropriated for fiscal year 2002 from the 
163.33  general fund to the commissioner of revenue to make grants to 
163.34  one or more nonprofit organizations, qualifying under section 
163.35  501(c)(3) of the Internal Revenue Code of 1986, to coordinate, 
163.36  facilitate, encourage, and aid in the provision of taxpayer 
164.1   assistance services.  This appropriation is available for fiscal 
164.2   years 2002 and 2003 and does not become a part of the base.  
164.3      (b) For purposes of this section, "taxpayer assistance 
164.4   services" means accounting and tax preparation services provided 
164.5   by volunteers to low-income and disadvantaged Minnesota 
164.6   residents to help them file federal and state income tax returns 
164.7   and Minnesota property tax refund claims and to provide personal 
164.8   representation before the department of revenue and Internal 
164.9   Revenue Service.