1.1                          A bill for an act 
  1.2             relating to education finance; modifying the debt 
  1.3             service equalization aid program to encourage sound 
  1.4             historic preservation and cost-efficient remodeling 
  1.5             projects; amending Minnesota Statutes 2001 Supplement, 
  1.6             section 123B.53, subdivision 5. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.9   123B.53, subdivision 5, is amended to read: 
  1.10     Subd. 5.  [EQUALIZED DEBT SERVICE LEVY.] (a) The equalized 
  1.11  debt service levy of a district equals the sum of the first tier 
  1.12  equalized debt service levy and the second tier equalized debt 
  1.13  service levy. 
  1.14     (b) A district's first tier equalized debt service levy 
  1.15  equals the district's first tier debt service equalization 
  1.16  revenue times the lesser of one or the ratio of: 
  1.17     (1) the quotient derived by dividing the adjusted net tax 
  1.18  capacity of the district for the year before the year the levy 
  1.19  is certified by the adjusted pupil units in the district for the 
  1.20  school year ending in the year prior to the year the levy is 
  1.21  certified; to 
  1.22     (2) $3,200. 
  1.23     (c) A district's second tier equalized debt service levy 
  1.24  equals the district's second tier debt service equalization 
  1.25  revenue times the lesser of one or the ratio of: 
  1.26     (1) the quotient derived by dividing the adjusted net tax 
  2.1   capacity of the district for the year before the year the levy 
  2.2   is certified by the adjusted pupil units in the district for the 
  2.3   school year ending in the year prior to the year the levy is 
  2.4   certified; to 
  2.5      (2) $8,000. 
  2.6      (d) Notwithstanding paragraph (b), the first tier equalized 
  2.7   debt service levy for a school district that is remodeling an 
  2.8   existing facility and can demonstrate that the overall project 
  2.9   costs will be significantly less than the cost of building a new 
  2.10  facility equals the district's first tier debt service 
  2.11  equalization revenue times the lesser of one or the ratio of: 
  2.12     (1) the quotient derived by dividing the adjusted net tax 
  2.13  capacity of the district for the year before the year the levy 
  2.14  is certified by the adjusted pupil units in the district for the 
  2.15  school year ending in the year prior to the year the levy is 
  2.16  certified; to 
  2.17     (2) $8,000. 
  2.18     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
  2.19  payable in 2003 and later.