HF 3542

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

  1.1                          A bill for an act 
  1.2             relating to education funding; providing property tax 
  1.3             equity for school districts; appropriating money; 
  1.4             amending Minnesota Statutes 1998, sections 123B.59, 
  1.5             subdivision 6, and by adding a subdivision; 126C.17, 
  1.6             subdivision 11; 126C.40, subdivision 1; Minnesota 
  1.7             Statutes 1999 Supplement, sections 123B.53, 
  1.8             subdivisions 4 and 5; 123B.54; 123B.57, subdivision 4; 
  1.9             and 126C.17, subdivisions 5 and 6. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.12  123B.53, subdivision 4, is amended to read: 
  1.13     Subd. 4.  [DEBT SERVICE EQUALIZATION REVENUE.] The debt 
  1.14  service equalization revenue of a district equals the eligible 
  1.15  debt service revenue minus the amount raised by a levy of 12 .. 
  1.16  percent times the adjusted net tax capacity of the district. 
  1.17     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  1.18  123B.53, subdivision 5, is amended to read: 
  1.19     Subd. 5.  [EQUALIZED DEBT SERVICE LEVY.] To obtain debt 
  1.20  service equalization revenue, a district must levy an amount not 
  1.21  to exceed the district's debt service equalization revenue times 
  1.22  the lesser of one or the ratio of: 
  1.23     (1) the quotient derived by dividing the adjusted net tax 
  1.24  capacity of the district for the year before the year the levy 
  1.25  is certified by the adjusted pupil units in the district for the 
  1.26  school year ending in the year prior to the year the levy is 
  1.27  certified; to 
  2.1      (2) $4,000 $........ 
  2.2      Sec. 3.  Minnesota Statutes 1999 Supplement, section 
  2.3   123B.54, is amended to read: 
  2.4      123B.54 [DEBT SERVICE APPROPRIATION.] 
  2.5      (a) $33,165,000 in fiscal year 2000, $32,057,000 in fiscal 
  2.6   year 2001, and $31,280,000 In fiscal year 2002 and each year 
  2.7   thereafter, there is annually appropriated from the general fund 
  2.8   to the commissioner of children, families, and learning the 
  2.9   amounts necessary for payment of debt service equalization aid 
  2.10  under section 123B.53.  The 2002 appropriation includes 
  2.11  $3,201,000 for 2001 and $29,079,000 for 2002. 
  2.12     (b) The appropriations in paragraph (a) must be reduced by 
  2.13  the amount of any money specifically appropriated for the same 
  2.14  purpose in any year from any state fund. 
  2.15     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
  2.16  123B.57, subdivision 4, is amended to read: 
  2.17     Subd. 4.  [HEALTH AND SAFETY LEVY.] To receive health and 
  2.18  safety revenue, a district may levy an amount equal to the 
  2.19  district's health and safety revenue as defined in subdivision 3 
  2.20  multiplied by the lesser of one, or the ratio of the quotient 
  2.21  derived by dividing the adjusted net tax capacity of the 
  2.22  district for the year preceding the year the levy is certified 
  2.23  by the adjusted marginal cost pupil units in the district for 
  2.24  the school year to which the levy is attributable, 
  2.25  to $3,956 $........ 
  2.26     Sec. 5.  Minnesota Statutes 1998, section 123B.59, 
  2.27  subdivision 6, is amended to read: 
  2.28     Subd. 6.  [ALTERNATIVE FACILITIES AID.] A district's 
  2.29  alternative facilities aid is the amount equal to the greater of:
  2.30     (1) district's annual debt service costs, provided that the 
  2.31  amount does not exceed the amount certified to be levied for 
  2.32  those purposes for taxes payable in 1997, or for a district that 
  2.33  made a levy under subdivision 5, paragraph (b), the lesser of 
  2.34  the district's annual levy amount, or one-sixth of the amount of 
  2.35  levy that it certified for that purpose for taxes payable in 
  2.36  1998; or 
  3.1      (2) the district's total alternative facilities revenue 
  3.2   times the greater of zero or the difference of one minus the 
  3.3   ratio of the district's adjusted net tax capacity per adjusted 
  3.4   marginal cost pupil unit. 
  3.5      Sec. 6.  Minnesota Statutes 1998, section 123B.59, is 
  3.6   amended by adding a subdivision to read: 
  3.7      Subd. 7a.  [ALTERNATIVE FACILITIES APPROPRIATION.] (a) 
  3.8   There is annually appropriated from the state general fund to 
  3.9   the commissioner of children, families, and learning the amount 
  3.10  necessary for payment of alternative facilities aid under 
  3.11  subdivision 6. 
  3.12     (b) The appropriation in paragraph (a) must be reduced by 
  3.13  the amount of any money specifically appropriated for the same 
  3.14  purposes in any year from any state fund. 
  3.15     Sec. 7.  Minnesota Statutes 1999 Supplement, section 
  3.16  126C.17, subdivision 5, is amended to read: 
  3.17     Subd. 5.  [REFERENDUM EQUALIZATION REVENUE.] (a) A 
  3.18  district's referendum equalization revenue equals the referendum 
  3.19  equalization allowance times the district's resident marginal 
  3.20  cost pupil units for that year.  
  3.21     (b) The referendum equalization allowance equals $350 for 
  3.22  fiscal year 2000 and $415 for fiscal year 2001 and $....... for 
  3.23  fiscal year 2002 and later. 
  3.24     (c) Referendum equalization revenue must not exceed a 
  3.25  district's total referendum revenue for that year. 
  3.26     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
  3.27  126C.17, subdivision 6, is amended to read: 
  3.28     Subd. 6.  [REFERENDUM EQUALIZATION LEVY.] (a) A district's 
  3.29  referendum equalization levy for a referendum levied against the 
  3.30  referendum market value of all taxable property as defined in 
  3.31  section 126C.01, subdivision 3, equals the district's referendum 
  3.32  equalization revenue times the lesser of one or the ratio of the 
  3.33  district's referendum market value per resident marginal cost 
  3.34  pupil unit to $476,000 $........ 
  3.35     (b) A district's referendum equalization levy for a 
  3.36  referendum levied against the net tax capacity of all taxable 
  4.1   property equals the district's referendum equalization revenue 
  4.2   times the lesser of one or the ratio of the district's adjusted 
  4.3   net tax capacity per resident marginal cost pupil unit to 
  4.4   $8,404 $........ 
  4.5      Sec. 9.  Minnesota Statutes 1998, section 126C.17, 
  4.6   subdivision 11, is amended to read: 
  4.7      Subd. 11.  [REFERENDUM DATE.] In addition to the referenda 
  4.8   allowed in subdivision 9, clause (a), the commissioner may 
  4.9   authorize a referendum for a different day.  
  4.10     (a) The commissioner may grant authority to a district to 
  4.11  hold a referendum on a different day if the district is in 
  4.12  statutory operating debt and has an approved plan or has 
  4.13  received an extension from the department to file a plan to 
  4.14  eliminate the statutory operating debt.  
  4.15     (b) The commissioner may grant authority for a district to 
  4.16  hold a referendum on a different day if:  (1) the district will 
  4.17  conduct a bond election under chapter 475 on that same day; and 
  4.18  (2) the proceeds of the referendum will provide only additional 
  4.19  operating revenue complementing the purpose for which bonding 
  4.20  authority is sought.  The commissioner may only grant authority 
  4.21  under this paragraph if the district demonstrates to the 
  4.22  commissioner's satisfaction that the district's ability to 
  4.23  operate the new facility or achieve efficiencies with the 
  4.24  purchases connected to the proceeds of the bond sale will be 
  4.25  significantly affected if the operating referendum is not 
  4.26  conducted until the November general election.  Authority under 
  4.27  this paragraph expires November 30, 1998.  
  4.28     (c) The commissioner must approve, deny, or modify each 
  4.29  district's request for a referendum levy on a different day 
  4.30  within 60 days of receiving the request from a district. 
  4.31     Sec. 10.  Minnesota Statutes 1998, section 126C.40, 
  4.32  subdivision 1, is amended to read: 
  4.33     Subdivision 1.  [TO LEASE BUILDING OR LAND BUILDING LEASE 
  4.34  REVENUE.] (a) When a district finds it economically advantageous 
  4.35  to rent or lease a building or land for any instructional 
  4.36  purposes or for school storage or furniture repair, and it 
  5.1   determines that the operating capital revenue authorized under 
  5.2   section 126C.10, subdivision 13, is insufficient for this 
  5.3   purpose, it may apply to the commissioner for permission to make 
  5.4   an receive additional capital expenditure levy revenue for this 
  5.5   purpose.  An application for permission to levy revenue under 
  5.6   this subdivision must contain financial justification for 
  5.7   the proposed levy revenue, the terms and conditions of the 
  5.8   proposed lease, and a description of the space to be leased and 
  5.9   its proposed use.  
  5.10     (b) The criteria for approval of applications to levy under 
  5.11  this subdivision must include:  the reasonableness of the price, 
  5.12  the appropriateness of the space to the proposed activity, the 
  5.13  feasibility of transporting pupils to the leased building or 
  5.14  land, conformity of the lease to the laws and rules of the state 
  5.15  of Minnesota, and the appropriateness of the proposed lease to 
  5.16  the space needs and the financial condition of the district.  
  5.17  The commissioner must not authorize a levy revenue under this 
  5.18  subdivision in an amount greater than the cost to the district 
  5.19  of renting or leasing a building or land for approved purposes.  
  5.20  The proceeds of this levy This revenue must not be used for 
  5.21  custodial or other maintenance services.  A district may 
  5.22  not levy receive revenue under this subdivision for the purpose 
  5.23  of leasing or renting a district-owned building or site to 
  5.24  itself. 
  5.25     (c) For agreements finalized after July 1, 1997, a district 
  5.26  may not levy receive revenue under this subdivision for the 
  5.27  purpose of leasing:  (1) a newly constructed building used 
  5.28  primarily for regular kindergarten, elementary, or secondary 
  5.29  instruction; or (2) a newly constructed building addition or 
  5.30  additions used primarily for regular kindergarten, elementary, 
  5.31  or secondary instruction that contains more than 20 percent of 
  5.32  the square footage of the previously existing building. 
  5.33     (d) The total levy revenue under this subdivision for a 
  5.34  district for any year must not exceed $100 times the resident 
  5.35  adjusted marginal cost pupil units for the fiscal year to which 
  5.36  the levy is attributable. 
  6.1      (e) For agreements for which a review and comment have been 
  6.2   submitted to the department of children, families, and learning 
  6.3   after April 1, 1998, the term "instructional purpose" as used in 
  6.4   this subdivision excludes expenditures on stadiums. 
  6.5      (f) A district's equalized building lease levy equals the 
  6.6   product of the district's approved building lease revenue times 
  6.7   the lesser of one, or the ratio of the district's adjusted net 
  6.8   tax capacity per adjusted marginal cost pupil unit to $10,000. 
  6.9      (g) A district's equalized building lease aid equals the 
  6.10  difference between its approved building lease revenue and its 
  6.11  equalized building lease levy. 
  6.12     Sec. 11.  [EFFECTIVE DATE.] 
  6.13     Sections 1 to 8 and 10 are effective for revenue for fiscal 
  6.14  year 2002 and later.