Relating to financing and operation of state and local governmentARTICLE 1 � INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXExpressing the intent of the legislature relating to certain +individual income and corporate franchise tax increases; modifying certain income and +franchise tax provisions; modifying the characteristic to qualify as a foreign +operating corporation relating to assignment to locations of property and +payrolls; expanding and updating for inflation the individual income tax +brackets; eliminating the exclusion of certain wages from income not derived +from conduct of a trade or business; excluding certain dividends, interest, +royalties or capital gains of foreign operating corporations from deemed dividends+ under the unitary business principle ARTICLE 2 � PROPERTY TAXTemporarily increasing the commercial industrial property tax rate +and delaying the reduction in the tax rate for rental property under certain +conditions; modifying the market value homestead credit reimbursement; providing +temporary court administration cost aid to counties remaining without state +takeover of court costs, specifying certain appropriation limits; changing county+ homestead and agricultural aid (HACA) to county program aid to be payable by +the commissioner of revenue; increasing the state general levy for taxes +payable on commercial industrial property and setting the levy for seasonal +recreational property, requiring the commissioner to increase or decrease the +preliminary or final rate to account for certain errors and tax base changes; +eliminating the exclusion of electric generation attached machinery from the +definition commercial industrial tax capacity for state property tax purposes; +modifying the definition of city net tax capacity for aids payable in 2004 and + under certain conditions; modifying the population decline percentage for +certain larger cities; modifying the definition of city revenue need; +defining rental housing unit percentage, road accidents factor, metropolitan area +factor and population density for local government aids payment purposes; +modifying city formula aid and distribution and the LGA appropriation for 2004; +providing an option for payment of public defense services costs, authorizing +payment from county program aid; defining certain terms for property tax and LGA +payment purposes; providing for certain 2003 and 2004 aid payment reductions;+ repealing county criminal justice, family preservation, attached machinery, low+ income housing and rental housing tax base replacement aids, the county +homestead and agricultural credit aid formula and manufactured home HACA, the +definitions of city aid base and base reduction percentage for aid payment purposes, reimbursements to counties for certain child out of home placement +costs and certain additional money for city aid payment purposes ARTICLE 3 � PROPERTY TAX FREEZE"State/Local Fiscal Relations: Truth in Taxation Act", recognizing +the implications of addressing the state budget deficit without increases+ in local property tax rates in 2004 and 2005; freezing the levy for local +police and fire relief association pension liabilities and the benefit ratio for+ city apportionment of levies to rural service districts at the 2003 level; prohibiting local government units and special taxing districts from +incurring new debt by issuing obligations or authorizing installment or lease +purchase contracts or agreements after a certain date, exceptions; imposing +certain levy limits for taxes payable in 2004 and 2005; freezing local match and +fiscal disparities (revenue distribution) requirements in the metropolitan +and taconite tax relief areas and suspending local salary or budget +increase appeals authority and proposed property tax notice (truth in +taxation) and hearing requirements; requiring levy reductions or adjustments under +certain conditions; savings clauseARTICLE 4 � TOBACCO AND EXCISE TAXESSpecifying the intent of the legislature for the use of tobacco and +excise tax increase proceeds, requiring use to provide medical coverage for +pregnant women, newborns, individuals and families without access to health +care; redirecting the distribution of medical education funds to the +university of Minnesota to instructional costs of health professional programs at +the academic health center, authorizing the use of certain funds for +administrative expenses and requiring the annual transfer of a certain amount of the+ proceeds dedicated to the Minnesota future resources fund to the commissioner +of health for distribution to the academic health center; increasing and +eliminating the repeal of the accelerated June sales tax payment liability of certain retailers; increasing the tax rates on cigarettes and tobacco +products and eliminating the distributor stamp discount rate; requiring and +providing for accelerated payment of the estimated June tax liability by certain +cigarette and tobacco products distributors and liquor manufacturers and +wholesalers and redirecting certain portions of the proceeds to the academic health +center, the medical education and research costs and the tobacco use prevention +special revenue funds; imposing a fee on the distribution of cigarettes from manufacturers outside the tobacco settlement agreement; imposing a +floor stocks tax on cigarettes and tobacco products for deposit in the health care+ access fund ARTICLE 5 � ECONOMIC DEVELOPMENTExcluding income from biotechnology and health sciences industry +zones from the corporate franchise and alternative minimum (AMT) taxes and the +minimum fee; providing an income tax credit for investments in qualifying regional+ angel investment network funds and in international economic development +zones, including a jobs credit; providing an apportionment formula for +businesses in international economic development zones; providing sales tax +exemptions for purchases in and for international economic development and +biotechnology and health sciences industry zones; authorizing counties in the +metropolitan area to grant economic development authority powers to existing county +housing and redevelopment authorities; providing for greater Minnesota regional +center economic development infrastructure and initiative and regional +bridge economic recovery aids; providing for the designation of biotechnology and +health sciences industry tax free zones by the commissioner of trade and +economic development (DTED) and for the designation of international economic development zones, providing certain corporate franchise, sales and +property tax exemptions within the zones; granting the Anoka county HRA +certain expanded economic development authority, specifying certain limits ARTICLE 6 � MINERAL TAXATIONProviding for the taxation of mining and refining nonferrous ores, +metals and minerals; subjecting property used in mining or refining the ores to +the net proceeds tax and exempting associated property from property and +sales taxes and mining corporations from the franchise tax; modifying the +definition of municipality and defining taconite assistance area for property tax +purposes; requiring a levy reduction and providing for distribution to the iron+ range resources and rehabilitation board for revenue distribution (fiscal disparities) purposes; changing the term taconite tax relief area to +precious minerals tax relief area, defining the precious minerals tax relief +area; modifying the distribution of proceeds; requiring the segregation of +certain funds; imposing a royalty tax; expanding the grant and loan authority+ of the IRRRB commissioner relating to federal money; delaying the tax +increase; defining commercial production for temporary direct reduced ore tax +exemption purposes and extending the exemption to noncommercial production; +modifying the taxation of school districts; authorizing use of the Douglas J. +Johnson economic protection trust fund for loan guarantees or equity +investments; providing for redistribution of producer grants upon sale of taconite production facilities after cessation of operations; repealing +certain deductions from the production tax and a certain taconite tax credit ARTICLE 7 � GENERAL EDUCATION Making a technical correction from capital outlay to general fund in +a certain provision providing for the distribution of consolidated conservation+ areas account funds to counties; increasing the early recognition of +property tax revenue by school districts; modifying the schedule for the payment +of general education revenue to charter schools; eliminating the requirement for+ school districts to maintain separate record systems for students +participating in learning year programs; establishing a reserve account within the +community service fund; authorizing adult basic education consortia providing +approved adult basic education programs to serve as fiscal agent for the +consortia and entitling the consortia to state aid payments directly from the +commissioner; modifying the definition of pupil of limited English proficiency and +the revenue formula for LEP programs aid; accelerating the date for +counting children eligible for free or reduced price lunches as eligible in +the fall; modifying the referendum equalization revenue formula; making +referendum tax base replacement aid permanent for school districts, authorizing +renewal or approval of new referendum authority; eliminating the authority of +the department of children, families and learning (CFL) to grant school +districts in statutory operating debt extensions to file plans and to hold +referenda on an alternate date; authorizing and providing for low property wealth +equity aid; requiring certain education aid reductions and levy revenue +recognition adjustments; modifying certain school district aid payment +percentages, reducing certain other aid and payment formulas and providing +additional payments to school districts for certain later fiscal years; +eliminating the requirement for the commissioner of children, families and learning +(CFL) to report excess debt redemption fund balances to county auditors; +delaying implementation of the airport runway impact zone aid program for +independent school district #280, Richfield; reducing the amount of basic revenue+ for staff development for fiscal years 2004 and 2005 only; modifying the lease +rate for certain state land used as public campgrounds in Cook county, +requiring and providing for annual inflation adjustments; requiring the +commissioner to include certain items as part of the recommendations of the K-12 +education task force on school finance reform; appropriating money to the department+ for general education, referendum tax base replacement, abatement, +consolidation transition, nonpublic pupil and transportation and low property +wealth equity aids, for enrollment options transportation, for a grant to +independent school district #2190, Yellow Medicine East for tornado impact declining +enrollment aid and for declining pupil aid to independent school districts #241,+ Albert Lea, #2711, Mesabi East and #682, Roseau, for a grant to independent +school district #690, Warroad to operate the Angle Inlet school and for +grants to private contacted alternative uncommon schools located in independent+ school districts #273, Edina and #622 North St. Paul-Maplewood ARTICLE 8 � EDUCATIONAL EXCELLENCE AND OTHER POLICYSpecifying certain reporting requirements of school districts and sites participating in the alternative teacher compensation +program and clarifying the timing for payment of alternative compensation aid; +adjusting charter school building lease aid and eliminating integration aid +grant eligibility for the schools; clarifying the intended use of revenue for the transition system for +children with a disability and modifying compliance requirements, changing +transition programs to career and technical education programs, defining +essential personnel, requiring aid payments to comply with certain rules and +conditions; increasing the local share and reducing the state share of +integration revenue; providing for metropolitan magnet school direct receipt of special +education aid and granting the schools certain tuition charging authority; +authorizing school districts to levy for career and technical programs for 2004 +and 2005; requiring the commissioner of children, families and learning (CFL) +to include a career and technical education program plan as part of the +recommendations of the K-12 task force on school finance reform; authorizing school +districts to elect to charge transportation fees under certain conditions; +appropriating money to the commissioner for charter school building lease and start+ up aids and integration grants, for integration aid, for magnet school grants+ and start up aid, for interdistrict desegregation and integration +transportation grants, for American Indian success for the future, scholarships and teacher preparation grants, for tribal contact schools and early childhood +programs at the schools, for statewide testing support, for best practices +seminars, for advanced placement (AP) and international baccalaureate (IB) +examination fees and teacher training and support programs, for first grade +preparedness grants, for the youthworks program, for student organizations, for HIV/STI +education regional training sites, for collaborative urban educator recruitment+ and training programs grants and reading competency grants and for +integration programs; repealing a certain requirement for the commissioner to +contract with an independent school evaluation services contractor to evaluate and +report on the academic and financial performance of school districts, a certain+ reading competency requirement for the St. Croix education district and +charter school start up aid ARTICLE 9 � SPECIAL PROGRAMSRequiring first grade preparedness revenue to be placed in a reserve +account and restricting use of the revenue to the programs at qualifying +school sites; appropriating money to the commissioner of children, families and +learning (CFL) for special education, children with disabilities, travel for +home based services, special education excess costs and disabled students +transition aids, for court placed special education revenue and for special education +out of state tuition; repealing the reimbursement for special education +litigation costs ARTICLE 10 � EDUCATION REFORM; FACILITIES AND TECHNOLOGY; FUND +TRANSFERSProviding for a principled pay practices system to attract and retain+ high quality teachers and for the payment of principled pay practices aid;+ excluding alternative facilities levies from the second tier debt service +equalization revenue formula and certain large projects from health and safety +revenue eligibility, placing the projects under the alternative facilities +bonding and levy program and reducing the debt service appropriation; expanding +the authorized uses of health and safety revenue and prohibiting use for replacement of building materials or facilities; providing for +limited participation in the alternative facilities bonding and levy program +for certain school districts, specifying certain long term plan and +published notice requirements; granting school districts not issuing bonds +certain levy authority; providing for the temporary payment of deferred +maintenance revenue to school districts ineligible for the alternative facilities bonding+ and levy program; establishing a temporary education telecommunications fund +account and imposing a surcharge (access fee) on end user bills issued by +communications providers for customer wirelines or wireless access lines for voice +or data telecommunications services for deposit in the account to fund the +kindergarten through grade 12 schools and public library portions of the learning +network of Minnesota formerly funded through the department of children, +families and learning (CFL), specifying certain eligible expenditures and certain +duties of the Minnesota education telecommunications council (METC); +authorizing and providing for school districts or charter schools to establish online+ courses and establishing online course revenue; authorizing independent +school district #621, Mounds View to issue bonds for certain previously approved +projects; extending the disabled access levy authority of independent school +district #500, Southland; authorizing independent school district #806, +Elgin-Millville to levy for handicapped access and fire safety improvements to school buildings, specifying certain levy limits; authorizing independent +school district #740, Sartell to annually levy to lease a school bus storage+ facility; authorizing independent school district #15, St. Francis to redirect +the proceeds from the sale of certain school property for creation or +improvement of safe walking routes for students; authorizing certain permanent +fund transfers in independent school districts #695, Chisholm, #486, +Swanville and #277, Westonka; authorizing independent school district #914, +Ulen-Hitterdal to submit to the commissioner an application for the demolition of a +portion of the Ulen high school building to be included in health and safety +revenue for fiscal year 2005; appropriating money to the commissioner of +children, families and learning for health and safety, debt service equalization, +alternative facilities bonding and principled pay practices and for online course+ and deferred maintenance revenues; repealing the alternative teacher +compensation system and aid ARTICLE 11 � NUTRITION PROGRAMSAppropriating money to the department of children, families and +learning (CFL) for school and breakfast and summer school service replacement aids +and for the fast break to learning breakfast program ARTICLE 12 � LIBRARIESEstablishing the Minnesota state library board for libraries advocacy+ purposes, specifying certain membership requirements and powers and duties, +requiring and providing for board selection of a state librarian and transferring +certain responsibilities of the commissioner of children, families and +learning (CFL) to the board, transitional provision; expanding the authorized +projects under regional library basic system support grants to special services for +all non-English speaking persons and temporarily modifying grant +eligibility; appropriating money to the commissioner for basic support grants, for multicounty, multitype library systems and for the electronic +library; specifying certain terminology change instructions to the revisor of +statutes ARTICLE 13 � FAMILY AND EARLY CHILDHOOD EDUCATIONClarifying the coverage of head start programs and certain federal requirements, modifying the allocation of head start funds and +specifying certain work plan preparation and submittal requirements of head +start grantees; modifying the early childhood family education and school +readiness aid reserve account limits; appropriating money to the commissioner +of children, families and learning (CFL) for the school readiness, head +start and way to grow programs and for ECFE and health and developmental +screening aids ARTICLE 14 � PREVENTIONEstablishing a community education revenue reserve account limit for +school districts, providing for waiver of the limit by the commissioner of +children, families and learning (CFL) under certain conditions; appropriating +money to the commissioner for community education and adults with disabilities+ program aids, for hearing impaired adults programs, for violence prevention +education and after school enrichment grants and for school age child care +revenue ARTICLE 15 � SELF SUFFICIENCY AND LIFELONG LERNINGIncreasing the state total adult basic education aid amount, +modifying the formula and providing for aid adjustments; setting the adult basic +education program aid limit for fiscal year 2004 and later years; eliminating +certain program audit requirements; appropriating money to the commissioner +of children, families and learning (CFL) for adult basic education and +graduation aids, for GED tests and for lead abatement ARTICLE 16 - STATE AGENCIESSetting the fee for teachers and administrators licenses; eliminating+ the authority of the commissioner of children, families and learning +(CFL) to appoint a certain number of deputy commissioners; requesting the +legislative audit commission (LAC) to consider a program evaluation of projected +additional costs associated compliance with the federal no child left behind act+ of 2001 by the state and local school districts; appropriating money to the commissioner for the department for the Minnesota children's museum +and academy of science, the boards of teaching and of school administrators, for +the division of program finance, for implementation of new academic +standards, for the state library board and for the department name change, to the +Minnesota state academies and to the Perpich center for arts education ARTICLE 17 � ADMINISTRATIVE AMENDMENT AND REPEAL OF CERTAIN PROVISIONSClarifying the authority of the commissioner of children, families +and learning (CFL) to close schools relating to the state aid penalty; changing +the name of the Minnesota Indian scholarship committee to the American Indian +education committee; eliminating certain instructional hours requirements of +area learning centers and education districts; modifying the calculation +of referendum revenue for certain reorganized school districts; +expanding the authority of school boards to lease real property and changing +references to capital expenditure funds to operating capital accounts; reducing the+ health and safety and school age care levy limits; modifying the building +construction down payment program, providing for capital project referendum +accounts and levies; expanding the definitions of regular and excess +transportation relating to nonresident pupils for transportation aid entitlement purposes; +clarifying the responsibility of school districts enrolling nonresident pupils +in alternative attendance programs to provide transportation to the +pupils; clarifying certain provisions under the post-secondary enrollment +options (PSEO) program; modifying the formula for the payment of general +education revenue to charter schools relating to the transportation transition +allowance; transferring the authority for approval of school boards use of +nonlicensed community education directors from the commissioner to the Minnesota +board of school administrators; modifying the total community education levy +formula; regulating the payment of aid for access to the transition system for children with disabilities; expanding certain +budget approval requirements for the payment of integration revenue; +modifying the definition of high school relating to districts without secondary +schools for general education revenue purposes; eliminating the requirement for +reservation of a portion of the transition revenue adjustment under the basic +skills revenue reservation requirement; eliminating a certain referendum +levy assumption relating to the determination of referendum tax base +replacement aid and modifying certain requirements for referenda to revoke or reduce +increased revenue amounts; increasing the statutory operating debt levy +formula; modifying certain levy procedure adjustment requirements; modifying +certain provisions under the maximum effort school aid law relating to levies+ and expanding eligibility for capital loans; modifying area learning +center tuition charging requirements; modifying the formulas for determination of +certain aid adjustments; increasing the net debt limit for special school +district #1, Minneapolis; eliminating certain driver training course +responsibilities of the commissioner; modifying the determination of attached machinery aid +and the reservation requirement relating to the receipt of taconite tax +proceeds, eliminating the use of the funds for outcome based learning programs;+ modifying the treatment of certain surplus funds used to reduce certain levies +and state aids; increasing the net tax capacity rate for the severance levy by independent school district #625, St. Paul; specifying certain +reference change and codification instructions to the revisor of statutes; repealing +certain provisions relating to levy limits of reorganized districts, +intervention demonstration projects, regional clearinghouses for improving +education technology, general education levy equity, a certain uncodified +provision requiring certain commissioner school district formula adjustments +and certain rules relating to the teacher lunch period, pupil transportation, +services for the blind and physically disabled, disaster plans, civil defense +construction and the training and experience index ARTICLE 18 � TECHNICAL AMENDMENTSMaking technical corrections to certain provisions relating to child +care programs, teacher tenure, independent school district board +authority, school facilities, advertising on school buses, enrollment options programs,+ charter schools, the transition system for children with disabilities, +special education, general education revenue, state aid reduction for debt +repayment, administrative rules authority of the commissioner of children, +families and learning (CFL), the payment of aids to school districts and the +expired school bus safety advisory committee; repealing the Indian scholarship +committee, the aid reduction for debt repayment, a certain standing appropriation to+ the commissioner for the payment of certain adjustment aids, certain +amendatory language under certain provisions establishing the statewide school +district telecommunications network and extending the advisory committee to +the library for the blind and physically handicapped and the state multicultural +education advisory committeeARTICLE 19 � E-12 EDUCATION FORECAST ADJUSTMENTSAdjusting certain 2003 appropriations to the commissioner of +children, families and learning (CFL) for early childhood and family (ECFE) and K-12 +education programs to reflect the state budget forecast ARTICLE 20 � MOSQUITO CONTROL DISTRICTModifying certain provisions regulating the metropolitan mosquito +control district; expanding the authority of the district to spray +pesticides; expanding the area of the district and increasing the membership of +the commission, providing for inclusion of all of Carver county; +expanding the authority of the commission to enter private property; modifying +certain contract requirements and subjecting contracts to the uniform +municipal contracting law; prohibiting the payment of per diems to +commissioners and making expense reimbursements optional; providing for services to the additional part of Carver county until the availability of levy +proceeds; repealing a certain commissioner expense reimbursement provision ARTICLE 21 � MISCELLANEOUSModifying certain cash flow account balance requirements and the +allocation of unrestricted budgetary general fund balances; prohibiting state +agency procurement contracts with corporations reincorporated in tax haven countries and trading stock primarily in +the United States, defining tax haven country and requiring the commissioner of administration to require vendors submitting bids or entering into +contracts with state agencies to certify contract eligibility, authorizing +commissioner waiver of the restriction under certain compelling public interest determination conditions; authorizing the commissioner of revenue to accept payments of court +fines designated for tax law enforcement; requiring counties to remit a +certain percentage of the state portion of the June receipts of mortgage +registry and deed tax proceeds by a certain changed (accelerated) date; +eliminating the authority of the state fair to retain sales taxes collected on +admissions, exempting sales before a certain date; delaying interest payments on +sales tax refunds to certain taxpayers; providing a partial motor vehicle sales+ tax exemption for certain clean fuel motor vehicles; clarifying the +exemption for certain surcharges or fees from the solid waste management tax; +requiring a certain amount of sales tax revenues attributable to the extension of+ bar closing times to be annually added to local government aid (LGA) and +used for public safety; appropriating money to the commissioner of revenue for additional tax compliance activities and reducing the appropriation +for the -2005 operating budget of the department, prohibiting the + reduction of direct compliance activities in response to the reduction; repealing +the used motor oil and filters collection refund program(ra)