<a id="pl.1.3"></a><var>1.3</var>local sales tax; eliminating certain existing local sales taxes; adjusting county <br/>
<a id="pl.1.4"></a><var>1.4</var>program aid; modifying levy limits; providing flexibility and mandate reduction <br/>
<a id="pl.1.5"></a><var>1.5</var>provisions; making changes to various property tax and local government <br/>
<a id="pl.1.6"></a><var>1.6</var>aid-related provisions; providing temporary suspension of new or increased <br/>
<a id="pl.1.7"></a><var>1.7</var>maintenance of effort and matching fund requirements; modifying county <br/>
<a id="pl.1.8"></a><var>1.8</var>support of libraries; establishing the Council on Local Results and Innovation; <br/>
<a id="pl.1.9"></a><var>1.9</var>providing property tax system benchmarks, critical indicators, and principles; <br/>
<a id="pl.1.10"></a><var>1.10</var>establishing a property tax work group; creating the Legislative Commission <br/>
<a id="pl.1.11"></a><var>1.11</var>on Mandate Reform; making changes to certain administrative procedures; <br/>
<a id="pl.1.12"></a><var>1.12</var>modifying truth in taxation provisions; providing clarification for eligibility for <br/>
<a id="pl.1.13"></a><var>1.13</var>property tax exemption for institutions of purely public charity; making changes <br/>
<a id="pl.1.14"></a><var>1.14</var>to property tax refund, sustainable forest incentive, and senior citizen property <br/>
<a id="pl.1.15"></a><var>1.15</var>tax deferral programs; extending time for establishment of special service <br/>
<a id="pl.1.16"></a><var>1.16</var>district; requiring a fiscal disparity study; extending emergency medical service <br/>
<a id="pl.1.17"></a><var>1.17</var>special taxing district; providing emergency debt certificates; providing and <br/>
<a id="pl.1.18"></a><var>1.18</var>modifying local taxes; providing appointments; requiring reports; appropriating <br/>
<a id="pl.1.19"></a><var>1.19</var>money;amending Minnesota Statutes 2008, sections 3.842, subdivision 4a; <br/>
<a id="pl.1.20"></a><var>1.20</var>3.843; 16C.28, subdivision 1a; 123B.10, subdivision 1; 134.34, subdivisions <br/>
<a id="pl.1.21"></a><var>1.21</var>1, 4; 272.02, subdivision 7, by adding a subdivision; 273.1231, subdivision <br/>
<a id="pl.1.22"></a><var>1.22</var>1; 273.1232, subdivision 1; 273.124, subdivision 1; 273.13, subdivisions 25, <br/>
<a id="pl.1.23"></a><var>1.23</var>34; 273.1384, subdivisions 1, 4; 275.065, subdivisions 1, 1a, 1c, 3, 6; 275.07, <br/>
<a id="pl.1.24"></a><var>1.24</var>subdivisions 1, 4, by adding a subdivision; 275.08, subdivision 1d; 275.70, <br/>
<a id="pl.1.25"></a><var>1.25</var>subdivisions 3, 5; 275.71, subdivisions 2, 4, 5; 276.04, subdivision 2; 282.08; <br/>
<a id="pl.1.26"></a><var>1.26</var>290A.04, subdivision 2; 290B.03, subdivision 1; 290B.04, subdivisions 3, 4; <br/>
<a id="pl.1.27"></a><var>1.27</var>290B.05, subdivision 1; 290B.07; 290C.07; 297A.99, subdivision 1; 306.243, <br/>
<a id="pl.1.28"></a><var>1.28</var>by adding a subdivision; 344.18; 365.28; 373.052, subdivision 1; 375.194, <br/>
<a id="pl.1.29"></a><var>1.29</var>subdivision 5; 383A.75, subdivision 3; 428A.21; 429.041, subdivisions 1, 2; <br/>
<a id="pl.1.30"></a><var>1.30</var>446A.086, subdivision 8; 465.719, subdivision 9; 469.015; 473.13, subdivision <br/>
<a id="pl.1.31"></a><var>1.31</var>1; 477A.011, subdivision 36; 477A.0124, by adding a subdivision; 477A.013, <br/>
<a id="pl.1.32"></a><var>1.32</var>subdivision 9, by adding a subdivision; 477A.03, subdivisions 2a, 2b; 641.12, <br/>
<a id="pl.1.33"></a><var>1.33</var>subdivision 1; Laws 1986, chapter 400, section 44, as amended; Laws 1991, <br/>
<a id="pl.1.34"></a><var>1.34</var>chapter 291, article 8, section 27, subdivision 3, as amended; Laws 2001, <br/>
<a id="pl.1.35"></a><var>1.35</var>First Special Session chapter 5, article 3, section 8, as amended; Laws 2002, <br/>
<a id="pl.1.36"></a><var>1.36</var>chapter 377, article 3, section 25; Laws 2006, chapter 259, article 3, section <br/>
<a id="pl.1.37"></a><var>1.37</var>12, subdivision 3; Laws 2008, chapter 366, article 6, sections 9; 10; article 7, <br/>
<a id="pl.1.38"></a><var>1.38</var>section 16, subdivision 3; proposing coding for new law in Minnesota Statutes, <br/>
<a id="pl.1.39"></a><var>1.39</var>chapters 3; 6; 14; 270C; 273; 275; 297A; 475; 477A; proposing coding for new <br/>
<a id="pl.2.1"></a><var>2.1</var>law as Minnesota Statutes, chapter 290D; repealing Minnesota Statutes 2008, <br/>
<a id="pl.2.2"></a><var>2.2</var>sections 275.065, subdivisions 5a, 6b, 6c, 8, 9, 10; 477A.0124, subdivisions 3, 4, <br/>
<a id="pl.2.3"></a><var>2.3</var>5; 477A.03, subdivision 5; Laws 2008, chapter 366, article 7, section 18.<br/>
<a id="pl.2.4"></a><var>2.4</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.2.7"></a><var>2.7</var>    Section 1. Minnesota Statutes 2008, section 275.70, subdivision 3, is amended to read:<br/>
<a id="pl.2.8"></a><var>2.8</var>    Subd. 3. <b>Local governmental unit.</b> "Local governmental unit" means a county, or a <br/>
<a id="pl.2.9"></a><var>2.9</var>statutory or home rule charter city with a population greater than 2,500.<br/>
<a id="pl.2.10"></a><var>2.10</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in calendar year <br/>
<a id="pl.2.11"></a><var>2.11</var>2009, payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.2.12"></a><var>2.12</var>    Sec. 2. Minnesota Statutes 2008, section 275.71, subdivision 2, is amended to read:<br/>
<a id="pl.2.13"></a><var>2.13</var>    Subd. 2. <b>Levy limit base.</b> (a) The levy limit base for a local governmental unit for <br/>
<a id="pl.2.14"></a><var>2.14</var>taxes levied in 2008 is its levy aid base from the previous year, subject to any adjustments <br/>
<a id="pl.2.15"></a><var>2.15</var>under section 
         <statute_ref>275.72</statute_ref>. For taxes levied in 2009 and 2010, the levy limit base for a local <br/>
<a id="pl.2.16"></a><var>2.16</var>governmental unit is its adjusted levy limit base in the previous year, subject to any <br/>
<a id="pl.2.17"></a><var>2.17</var>adjustments under section 
         <statute_ref>275.72</statute_ref>.<br/>
<a id="pl.2.18"></a><var>2.18</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in calendar year <br/>
<a id="pl.2.19"></a><var>2.19</var>2009, payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.2.20"></a><var>2.20</var>    Sec. 3. Minnesota Statutes 2008, section 275.71, subdivision 4, is amended to read:<br/>
<a id="pl.2.21"></a><var>2.21</var>    Subd. 4. <b>Adjusted levy limit base.</b>  For taxes levied in 2008 through 2010 and 2009, <br/>
<a id="pl.2.22"></a><var>2.22</var>the adjusted levy limit base is equal to the levy limit base computed under subdivision 2 <br/>
<a id="pl.2.23"></a><var>2.23</var>or section 
         <statute_ref>275.72</statute_ref>, multiplied by:<br/>
<a id="pl.2.24"></a><var>2.24</var>    (1) one plus the lesser of 3.9 percent or the percentage growth in the implicit price <br/>
<a id="pl.2.25"></a><var>2.25</var>deflator but not less than two percent;<br/>
<a id="pl.2.26"></a><var>2.26</var>    (2) one plus a percentage equal to 50 percent of the percentage increase in the number <br/>
<a id="pl.2.27"></a><var>2.27</var>of households, if any, for the most recent 12-month period for which data is available; and<br/>
<a id="pl.2.28"></a><var>2.28</var>    (3) one plus a percentage equal to 50 percent of the percentage increase in the <br/>
<a id="pl.2.29"></a><var>2.29</var>taxable market value of the jurisdiction due to new construction of class 3 property, as <br/>
<a id="pl.2.30"></a><var>2.30</var>defined in section 
         <statute_ref>273.13, subdivision 4</statute_ref>, except for state-assessed utility and railroad <br/>
<a id="pl.2.31"></a><var>2.31</var>property, for the most recent year for which data is available.<br/>
<a id="pl.3.1"></a><var>3.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in calendar year <br/>
<a id="pl.3.2"></a><var>3.2</var>2009, payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.3.3"></a><var>3.3</var>    Sec. 4. Minnesota Statutes 2008, section 275.71, subdivision 5, is amended to read:<br/>
<a id="pl.3.4"></a><var>3.4</var>    Subd. 5. <b>Property tax levy limit.</b> For taxes levied in 2008 through 2010 2009, the <br/>
<a id="pl.3.5"></a><var>3.5</var>property tax levy limit for a local governmental unit is equal to its adjusted levy limit <br/>
<a id="pl.3.6"></a><var>3.6</var>base determined under subdivision 4 plus any additional levy authorized under section <br/>
<statute_ref><a id="pl.3.7"></a><var>3.7</var>275.73
         </statute_ref>, which is levied against net tax capacity, reduced by the sum of (i) the total amount <br/>
<a id="pl.3.8"></a><var>3.8</var>of aids and reimbursements that the local governmental unit is certified to receive under <br/>
<a id="pl.3.9"></a><var>3.9</var>sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.014</statute_ref>, (ii) the amount of aid reduction under section 477A.0124, <br/>
<a id="pl.3.10"></a><var>3.10</var>subdivision (6), paragraph (c), (iii) taconite aids under sections 
         <statute_ref>298.28</statute_ref> and 
         <statute_ref>298.282</statute_ref> <br/>
<a id="pl.3.11"></a><var>3.11</var>including any aid which was required to be placed in a special fund for expenditure in the <br/>
<a id="pl.3.12"></a><var>3.12</var>next succeeding year, (iii) (iv) estimated payments to the local governmental unit under <br/>
<a id="pl.3.13"></a><var>3.13</var>section 
         <statute_ref>272.029</statute_ref>, adjusted for any error in estimation in the preceding year, and (iv) (v) <br/>
<a id="pl.3.14"></a><var>3.14</var>aids under section 
         <statute_ref>477A.16</statute_ref>. <br/>
<a id="pl.3.15"></a><var>3.15</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in calendar year <br/>
<a id="pl.3.16"></a><var>3.16</var>2009, payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.3.17"></a><var>3.17</var>    Sec. 5. Minnesota Statutes 2008, section 297A.99, subdivision 1, is amended to read:<br/>
<a id="pl.3.18"></a><var>3.18</var>    Subdivision 1.  <b>Authorization; scope.</b> (a) A political subdivision of this state may <br/>
<a id="pl.3.19"></a><var>3.19</var>impose a general sales tax (1) under section 
         <statute_ref>297A.992</statute_ref>, (2) under section 
         <statute_ref>297A.993</statute_ref>, (3) <br/>
<a id="pl.3.20"></a><var>3.20</var>under section 297A.994, (4) if permitted by special law enacted prior to May 20, 2008, or <br/>
<a id="pl.3.21"></a><var>3.21</var>(4) (5) if the political subdivision enacted and imposed the tax before January 1, 1982, and <br/>
<a id="pl.3.22"></a><var>3.22</var>its predecessor provision. <br/>
<a id="pl.3.23"></a><var>3.23</var>    (b) This section governs the imposition of a general sales tax by the political <br/>
<a id="pl.3.24"></a><var>3.24</var>subdivision. The provisions of this section preempt the provisions of any special law: <br/>
<a id="pl.3.25"></a><var>3.25</var>    (1) enacted before June 2, 1997, or <br/>
<a id="pl.3.26"></a><var>3.26</var>    (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law <br/>
<a id="pl.3.27"></a><var>3.27</var>provision from this section's rules by reference. <br/>
<a id="pl.3.28"></a><var>3.28</var>    (c) This section does not apply to or preempt a sales tax on motor vehicles or a <br/>
<a id="pl.3.29"></a><var>3.29</var>special excise tax on motor vehicles.<br/>
<a id="pl.3.30"></a><var>3.30</var>    (d) Until after May 31, 2010, a political subdivision may not advertise, promote, <br/>
<a id="pl.3.31"></a><var>3.31</var>expend funds, or hold a referendum to support imposing a local option sales tax unless <br/>
<a id="pl.3.32"></a><var>3.32</var>it is for extension of an existing tax or the tax was authorized by a special law enacted <br/>
<a id="pl.3.33"></a><var>3.33</var>prior to May 20, 2008.<br/>
<a id="pl.4.1"></a><var>4.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.4.2"></a><var>4.2</var>    Sec. 6. <b>[297A.994] COUNTY LOCAL OPTION SALES TAX.</b><br/>
<a id="pl.4.3"></a><var>4.3</var>    Subdivision 1. <b>Authorization; rates.</b> Notwithstanding section 297A.99, <br/>
<a id="pl.4.4"></a><var>4.4</var>subdivisions 2, 3, and 5, or 477A.016, or any other law, a county board may, by resolution, <br/>
<a id="pl.4.5"></a><var>4.5</var>impose a general sales tax of one-half of one percent on sales and uses taxable under this <br/>
<a id="pl.4.6"></a><var>4.6</var>chapter. In addition, an excise tax of $20 per motor vehicle is imposed on motor vehicles, <br/>
<a id="pl.4.7"></a><var>4.7</var>purchased or acquired from any person engaged within the county in the business of selling <br/>
<a id="pl.4.8"></a><var>4.8</var>motor vehicles at retail if a county imposes a local sales and use tax under this section.<br/>
<a id="pl.4.9"></a><var>4.9</var>    Subd. 2. <b>Application of election requirement.</b> (a) Imposition of the tax under this <br/>
<a id="pl.4.10"></a><var>4.10</var>section is not subject to the requirements of section 297A.99, subdivision 3.<br/>
<a id="pl.4.11"></a><var>4.11</var>(b) Before imposing the tax under this section, the county must publish a notice of <br/>
<a id="pl.4.12"></a><var>4.12</var>its intention to impose the tax and the date and time of a hearing to obtain public comment <br/>
<a id="pl.4.13"></a><var>4.13</var>on the matter. The notice must be published in the official newspaper of the county, or <br/>
<a id="pl.4.14"></a><var>4.14</var>in a newspaper of general circulation in the county. The notice must be published at <br/>
<a id="pl.4.15"></a><var>4.15</var>least 14 days before the date of the hearing, but not more than 28 days. Following the <br/>
<a id="pl.4.16"></a><var>4.16</var>public hearing the county board may determine to take no further action, or may adopt a <br/>
<a id="pl.4.17"></a><var>4.17</var>resolution imposing the tax.<br/>
<a id="pl.4.18"></a><var>4.18</var>(c) A county may impose the tax only upon obtaining the approval of the majority <br/>
<a id="pl.4.19"></a><var>4.19</var>of voters voting on the question of imposing the tax, if a petition requesting a vote on <br/>
<a id="pl.4.20"></a><var>4.20</var>imposition of the tax is signed by voters equal to the greater of (1) 500, or (2) ten percent <br/>
<a id="pl.4.21"></a><var>4.21</var>of the votes cast in the county at the last general election is filed with the county auditor <br/>
<a id="pl.4.22"></a><var>4.22</var>within 30 days after the public hearing. The vote on the tax may be held at a general or <br/>
<a id="pl.4.23"></a><var>4.23</var>special election. The commissioner of revenue shall prepare a suggested form of the <br/>
<a id="pl.4.24"></a><var>4.24</var>question to be presented at the election.<br/>
<a id="pl.4.25"></a><var>4.25</var>    Subd. 3. <b>Use of revenues.</b> Revenues from the tax imposed under this section <br/>
<a id="pl.4.26"></a><var>4.26</var>must first be used to fund obligations under section 297A.9945. Remaining revenues <br/>
<a id="pl.4.27"></a><var>4.27</var>are deposited in the county general fund.<br/>
<a id="pl.4.28"></a><var>4.28</var>    Subd. 4. <b>Administration, collection, and enforcement.</b> The administration, <br/>
<a id="pl.4.29"></a><var>4.29</var>collection, and enforcement of the provisions in section 297A.99, subdivisions 4 and 6 to <br/>
<a id="pl.4.30"></a><var>4.30</var>12, apply to a tax imposed under this section.<br/>
<a id="pl.4.31"></a><var>4.31</var>    Subd. 5. <b>Termination.</b> A county may terminate a tax imposed under this section <br/>
<a id="pl.4.32"></a><var>4.32</var>upon resolution of the county board and notification to the commissioner of revenue, if <br/>
<a id="pl.4.33"></a><var>4.33</var>all obligations under section 297A.9945 have been paid.<br/>
<a id="pl.4.34"></a><var>4.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.5.1"></a><var>5.1</var>    Sec. 7. <b>[297A.9945] EFFECT ON EXISTING LOCAL SALES TAXES; </b><br/>
<a id="pl.5.2"></a><var>5.2</var><b>SATISFACTION OF PREEXISTING OBLIGATIONS.</b><br/>
<a id="pl.5.3"></a><var>5.3</var>    Subdivision 1. <b>Preemption of preexisting local sales taxes.</b> (a) Notwithstanding <br/>
<a id="pl.5.4"></a><var>5.4</var>section 297A.99 or any other law or local ordinance to the contrary, all general local <br/>
<a id="pl.5.5"></a><var>5.5</var>sales and use taxes in a county or a part of a county is preempted on the day that a <br/>
<a id="pl.5.6"></a><var>5.6</var>county local sales tax under section 297A.994 takes effect, except the following taxes <br/>
<a id="pl.5.7"></a><var>5.7</var>are not preempted:<br/>
<a id="pl.5.8"></a><var>5.8</var>(1) a local tax imposed under section 297A.992 or 297A.993; and<br/>
<a id="pl.5.9"></a><var>5.9</var>(2) a local sales tax authorized by special law in a city of the first class.<br/>
<a id="pl.5.10"></a><var>5.10</var>(b) A local sales tax that is imposed by a city located in two or more counties is <br/>
<a id="pl.5.11"></a><var>5.11</var>preempted if one or more counties in which the city is located impose the county tax. A <br/>
<a id="pl.5.12"></a><var>5.12</var>replacement tax must be imposed under subdivision 6 in any portion of the city located in <br/>
<a id="pl.5.13"></a><var>5.13</var>a county that has not imposed the tax under section 297A.994.<br/>
<a id="pl.5.14"></a><var>5.14</var>    Subd. 2. <b>County payment to cities; forgone sales tax revenue.</b> (a) If a local <br/>
<a id="pl.5.15"></a><var>5.15</var>sales tax imposed in a city located partially or totally within a county is preempted under <br/>
<a id="pl.5.16"></a><var>5.16</var>subdivision 1, the county shall pay a portion of its local sales tax revenues, as provided <br/>
<a id="pl.5.17"></a><var>5.17</var>under subdivision 4 or 5, to the city to fund obligations allowed under the law authorizing <br/>
<a id="pl.5.18"></a><var>5.18</var>the city tax. The county must make these payments to the city within five business days <br/>
<a id="pl.5.19"></a><var>5.19</var>after it receives the revenues from the commissioner.<br/>
<a id="pl.5.20"></a><var>5.20</var>(b) If the local sales tax was imposed under a joint powers agreement in cities <br/>
<a id="pl.5.21"></a><var>5.21</var>located in more than one county, the share of the obligation to be funded by the county <br/>
<a id="pl.5.22"></a><var>5.22</var>must be determined under subdivision 5.<br/>
<a id="pl.5.23"></a><var>5.23</var>(c) The requirement to make these payments ceases on the earliest of the following:<br/>
<a id="pl.5.24"></a><var>5.24</var>(1) the date on which the city tax was required to expire under the special law <br/>
<a id="pl.5.25"></a><var>5.25</var>authorizing it;<br/>
<a id="pl.5.26"></a><var>5.26</var>(2) when the city has received sufficient revenues from its tax and from payments <br/>
<a id="pl.5.27"></a><var>5.27</var>under this section to pay in full or to defease debt obligations issued by the city under the <br/>
<a id="pl.5.28"></a><var>5.28</var>law authorizing the city sales tax and to pay any additional spending obligations allowed <br/>
<a id="pl.5.29"></a><var>5.29</var>under the special law and not funded by the issuance of debt obligations; or <br/>
<a id="pl.5.30"></a><var>5.30</var>(3) the city becomes a city of the first class and imposes a city sales tax.<br/>
<a id="pl.5.31"></a><var>5.31</var>    Subd. 3. <b>Dedication of tax to fund county projects.</b> If a county imposed local <br/>
<a id="pl.5.32"></a><var>5.32</var>sales tax is preempted under subdivision 1, the revenues from the tax imposed under <br/>
<a id="pl.5.33"></a><var>5.33</var>section 297A.994 are pledged first to pay and secure the bond obligations secured by and <br/>
<a id="pl.5.34"></a><var>5.34</var>to be paid with the revenues from the preempted county sales tax. <br/>
<a id="pl.6.1"></a><var>6.1</var>    Subd. 4. <b>Calculation of forgone revenue in cities located entirely within a </b><br/>
<a id="pl.6.2"></a><var>6.2</var><b>county.</b> For purposes of subdivision 2, the forgone revenue to be paid to the city located <br/>
<a id="pl.6.3"></a><var>6.3</var>entirely in a county imposing a tax under section 297A.994 is calculated as follows:<br/>
<a id="pl.6.4"></a><var>6.4</var>(1) in the first 12 months after the tax is preempted, the county shall make quarterly <br/>
<a id="pl.6.5"></a><var>6.5</var>payments to a city entirely located within the county equal to the amount that the city <br/>
<a id="pl.6.6"></a><var>6.6</var>received from the commissioner of revenue from the preempted tax in the corresponding <br/>
<a id="pl.6.7"></a><var>6.7</var>quarter in the previous year, multiplied by a percentage equal to the percentage change in <br/>
<a id="pl.6.8"></a><var>6.8</var>total state sales tax revenue in the previous quarter compared to the total state sales tax <br/>
<a id="pl.6.9"></a><var>6.9</var>revenue for the fifth preceding quarter; and<br/>
<a id="pl.6.10"></a><var>6.10</var>(2) in subsequent years, the county shall make quarterly payments to the city equal <br/>
<a id="pl.6.11"></a><var>6.11</var>to the payment made in the corresponding quarter in the previous year, multiplied by the <br/>
<a id="pl.6.12"></a><var>6.12</var>ratio of the total quarterly remittance to the county in the current year compared to the <br/>
<a id="pl.6.13"></a><var>6.13</var>total quarterly remittance to the county in the previous year.<br/>
<a id="pl.6.14"></a><var>6.14</var>    Subd. 5. <b>Calculation of forgone revenue in cities located partially within a </b><br/>
<a id="pl.6.15"></a><var>6.15</var><b>county.</b> (a) For purposes of subdivision 2, the forgone revenue to be paid to the city <br/>
<a id="pl.6.16"></a><var>6.16</var>located partially in a county imposing a tax under section 297A.994 is calculated as <br/>
<a id="pl.6.17"></a><var>6.17</var>provided in this subdivision.<br/>
<a id="pl.6.18"></a><var>6.18</var>(b) The commissioner of revenue shall determine the percentage of the city's local <br/>
<a id="pl.6.19"></a><var>6.19</var>sales tax revenue attributable to transactions located in the county. The commissioner <br/>
<a id="pl.6.20"></a><var>6.20</var>may consult with the county and the city to determine a reasonable percentage, or the <br/>
<a id="pl.6.21"></a><var>6.21</var>commissioner may set the percentage equal to the percentage of the city's market value <br/>
<a id="pl.6.22"></a><var>6.22</var>for the most recently available assessment year of class 3 property, except utility real and <br/>
<a id="pl.6.23"></a><var>6.23</var>personal property located in the county. The sum of the percentage of a city's local sales <br/>
<a id="pl.6.24"></a><var>6.24</var>tax revenue attributable to each county in which the city is located must equal 100 percent. <br/>
<a id="pl.6.25"></a><var>6.25</var>The determination of the commissioner is final.<br/>
<a id="pl.6.26"></a><var>6.26</var>(c) In the first 12 months after the tax is preempted, the county shall make quarterly <br/>
<a id="pl.6.27"></a><var>6.27</var>payments to a city partially located within the county equal to the amount that the city <br/>
<a id="pl.6.28"></a><var>6.28</var>received from the commissioner from the preempted tax in the corresponding quarter in <br/>
<a id="pl.6.29"></a><var>6.29</var>the previous year, multiplied by (1) a percentage equal to one plus the percentage change <br/>
<a id="pl.6.30"></a><var>6.30</var>in total state sales tax revenue in the previous quarter compared to the total state sales tax <br/>
<a id="pl.6.31"></a><var>6.31</var>revenue for the fifth preceding quarter, and (2) one plus the percentage calculated in <br/>
<a id="pl.6.32"></a><var>6.32</var>paragraph (b).<br/>
<a id="pl.6.33"></a><var>6.33</var>(d) In subsequent years, the county shall make quarterly payments to the city equal <br/>
<a id="pl.6.34"></a><var>6.34</var>to the payment made in the corresponding quarter in the previous year multiplied by the <br/>
<a id="pl.6.35"></a><var>6.35</var>ratio of the total quarterly remittance to the county in the current year compared to the <br/>
<a id="pl.6.36"></a><var>6.36</var>total quarterly remittance to the county in the previous year. <br/>
<a id="pl.7.1"></a><var>7.1</var>(e) A county's share of a city's obligations from the special law authorizing the city's <br/>
<a id="pl.7.2"></a><var>7.2</var>sales tax is equal to the total obligation under the special law multiplied by one plus the <br/>
<a id="pl.7.3"></a><var>7.3</var>percentage determined under paragraph (b).<br/>
<a id="pl.7.4"></a><var>7.4</var>    Subd. 6. <b>Establishment of special sales tax districts within certain cities.</b> (a) <br/>
<a id="pl.7.5"></a><var>7.5</var>For any city located in two or more counties, if at least one county imposes a county <br/>
<a id="pl.7.6"></a><var>7.6</var>sales tax under subdivision 1, and at least one county does not impose a county sales tax, <br/>
<a id="pl.7.7"></a><var>7.7</var>a special sales tax district is established in the portion of the city that is not subject to <br/>
<a id="pl.7.8"></a><var>7.8</var>a county sales tax.<br/>
<a id="pl.7.9"></a><var>7.9</var>(b) The governing body of the city is the governing body of the special taxing district <br/>
<a id="pl.7.10"></a><var>7.10</var>and the special taxing district shall impose a replacement local sales tax by resolution <br/>
<a id="pl.7.11"></a><var>7.11</var>to take effect upon the preemption of the city's sales tax under subdivision 1. The <br/>
<a id="pl.7.12"></a><var>7.12</var>replacement tax must be imposed at the same rate as the city tax it replaces. Revenues <br/>
<a id="pl.7.13"></a><var>7.13</var>from the replacement tax are pledged to and may only be used for the purposes permitted <br/>
<a id="pl.7.14"></a><var>7.14</var>by law for the city sales tax, which it replaces. The authority to impose this tax expires <br/>
<a id="pl.7.15"></a><var>7.15</var>upon the city's receipt of sufficient revenues to pay the obligations to which the city sales <br/>
<a id="pl.7.16"></a><var>7.16</var>tax was pledged and other spending permitted by the law authorizing imposition of the <br/>
<a id="pl.7.17"></a><var>7.17</var>city sales tax from the sum of the following:<br/>
<a id="pl.7.18"></a><var>7.18</var>(1) the city sales tax;<br/>
<a id="pl.7.19"></a><var>7.19</var>(2) county payments of forgone sales tax revenues under this section; and<br/>
<a id="pl.7.20"></a><var>7.20</var>(3) the special taxing district sales tax.<br/>
<a id="pl.7.21"></a><var>7.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.7.22"></a><var>7.22</var>    Sec. 8. Minnesota Statutes 2008, section 477A.0124, is amended by adding a <br/>
<a id="pl.7.23"></a><var>7.23</var>subdivision to read:<br/>
<a id="pl.7.24"></a><var>7.24</var>    Subd. 6. <b>County program aid.</b> (a) For calendar year 2010 and thereafter, a county's <br/>
<a id="pl.7.25"></a><var>7.25</var>program aid under this section is equal to (1) its county program aid amount certified for <br/>
<a id="pl.7.26"></a><var>7.26</var>aids payable in 2009 under this section, minus (2) an amount determined under paragraph <br/>
<a id="pl.7.27"></a><var>7.27</var>(b) or (c). A county's program aid shall not be less than zero.<br/>
<a id="pl.7.28"></a><var>7.28</var>(b) For a county that does not impose a tax under section 297A.994, the amount <br/>
<a id="pl.7.29"></a><var>7.29</var>subtracted under paragraph (a) is equal to 3.58 percent of the county's 2009 levy plus aid <br/>
<a id="pl.7.30"></a><var>7.30</var>revenue base. The "2009 levy plus aid revenue base" for a county is equal to the sum of <br/>
<a id="pl.7.31"></a><var>7.31</var>the county's certified property tax levy for taxes payable in 2009 plus the amount the <br/>
<a id="pl.7.32"></a><var>7.32</var>county was certified to receive in county program aid in 2009 under this section and <br/>
<a id="pl.7.33"></a><var>7.33</var>the amount the county was certified to receive in taconite aids in 2009 under sections <br/>
<a id="pl.7.34"></a><var>7.34</var>298.28 and 292.282, including any aid that was required to be placed in a special fund for <br/>
<a id="pl.7.35"></a><var>7.35</var>expenditure in the next succeeding year.<br/>
<a id="pl.8.1"></a><var>8.1</var>(c) For a county that imposes a tax under section 297A.994, the amount subtracted <br/>
<a id="pl.8.2"></a><var>8.2</var>under paragraph (a) is equal to (1) 50 percent of its net sales tax revenue for the preceding <br/>
<a id="pl.8.3"></a><var>8.3</var>12-month period in excess of $7 per capita, plus (2) 25 percent of its net sales tax revenue <br/>
<a id="pl.8.4"></a><var>8.4</var>for the preceding 12-month period in excess of $17 per capita.<br/>
<a id="pl.8.5"></a><var>8.5</var>(d) For purposes of this subdivision, "net sales tax revenue for the preceding <br/>
<a id="pl.8.6"></a><var>8.6</var>12-month period" means the sales tax revenue for the county for the 12-month period <br/>
<a id="pl.8.7"></a><var>8.7</var>ending July 1 of the year in which the aid under this section is certified minus its estimated <br/>
<a id="pl.8.8"></a><var>8.8</var>existing obligations under section 297A.9945 for the year in which the aid is paid. For <br/>
<a id="pl.8.9"></a><var>8.9</var>the first two years in which the aid is offset under this paragraph, the commissioner of <br/>
<a id="pl.8.10"></a><var>8.10</var>revenue shall estimate the offset based on available data regarding sales tax collections in <br/>
<a id="pl.8.11"></a><var>8.11</var>the county. Beginning with the third year in which the aid is offset under this paragraph, <br/>
<a id="pl.8.12"></a><var>8.12</var>the offset will be based on actual sales tax collections in the county in the 12-month period <br/>
<a id="pl.8.13"></a><var>8.13</var>ending July 1 of the year in which the aid is certified.<br/>
<a id="pl.8.14"></a><var>8.14</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.8.15"></a><var>8.15</var>2010 and thereafter.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.8.16"></a><var>8.16</var>    Sec. 9. Minnesota Statutes 2008, section 477A.03, subdivision 2b, is amended to read:<br/>
<a id="pl.8.17"></a><var>8.17</var>    Subd. 2b. <b>Counties.</b> (a) For aids payable in 2009 2010 and thereafter, in addition <br/>
<a id="pl.8.18"></a><var>8.18</var>to the total aid payable under section 
         <statute_ref>477A.0124, subdivision 3</statute_ref>, is $111,500,000 minus <br/>
<a id="pl.8.19"></a><var>8.19</var>one-half of the total aid amount determined under section 
<statute_ref>477A.0124, subdivision 5</statute_ref>, <br/>
<a id="pl.8.20"></a><var>8.20</var>paragraph (b), subject to adjustment in subdivision 5. Each calendar year, 477A.0124, <br/>
<a id="pl.8.21"></a><var>8.21</var> $500,000 shall be retained by is appropriated to the commissioner of revenue to make <br/>
<a id="pl.8.22"></a><var>8.22</var>reimbursements to the commissioner of finance for payments made under section 
         <statute_ref>611.27</statute_ref>, <br/>
<a id="pl.8.23"></a><var>8.23</var>$207,000 is appropriated to the commissioner of revenue to make reimbursements to <br/>
<a id="pl.8.24"></a><var>8.24</var>the commissioner of finance for the preparation of local impact notes, and $7,000 is <br/>
<a id="pl.8.25"></a><var>8.25</var>appropriated to the commissioner of revenue to reimburse the commissioner of education <br/>
<a id="pl.8.26"></a><var>8.26</var>for the preparation of local impact notes for school districts. For calendar year 2004, <br/>
<a id="pl.8.27"></a><var>8.27</var>the amount shall be in addition to the payments authorized under section 
<statute_ref>477A.0124, <br/>
<a id="pl.8.28"></a><var>8.28</var>subdivision 1
</statute_ref>. For calendar year 2005 and subsequent years, the amount shall be deducted <br/>
<a id="pl.8.29"></a><var>8.29</var>from the appropriation under this paragraph. The reimbursements shall be to defray the <br/>
<a id="pl.8.30"></a><var>8.30</var>additional costs associated with court-ordered counsel under section 
<statute_ref>611.27</statute_ref>. Any retained <br/>
<a id="pl.8.31"></a><var>8.31</var>appropriated amounts not used for reimbursement in a year shall be included in the next <br/>
<a id="pl.8.32"></a><var>8.32</var>distribution of county need aid that is certified to the county auditors for the purpose <br/>
<a id="pl.8.33"></a><var>8.33</var>of property tax reduction for the next taxes payable year. under this subdivision shall <br/>
<a id="pl.8.34"></a><var>8.34</var>be returned to the general fund.<br/>
<a id="pl.9.1"></a><var>9.1</var>    (b) For aids payable in 2009 and thereafter, the total aid under section 
<statute_ref>477A.0124, <br/>
<a id="pl.9.2"></a><var>9.2</var>subdivision 4
</statute_ref>, is $116,132,923 minus one-half of the total aid amount determined under <br/>
<a id="pl.9.3"></a><var>9.3</var>section 
<statute_ref>477A.0124, subdivision 5</statute_ref>, paragraph (b), subject to adjustment in subdivision <br/>
<a id="pl.9.4"></a><var>9.4</var>5. The commissioner of finance shall bill the commissioner of revenue for the cost of <br/>
<a id="pl.9.5"></a><var>9.5</var>preparation of local impact notes as required by section 
<statute_ref>3.987</statute_ref>, not to exceed $207,000 in <br/>
<a id="pl.9.6"></a><var>9.6</var>fiscal year 2004 and thereafter. The commissioner of education shall bill the commissioner <br/>
<a id="pl.9.7"></a><var>9.7</var>of revenue for the cost of preparation of local impact notes for school districts as required <br/>
<a id="pl.9.8"></a><var>9.8</var>by section 
<statute_ref>3.987</statute_ref>, not to exceed $7,000 in fiscal year 2004 and thereafter. The commissioner <br/>
<a id="pl.9.9"></a><var>9.9</var>of revenue shall deduct the amounts billed under this paragraph from the appropriation <br/>
<a id="pl.9.10"></a><var>9.10</var>under this paragraph. The amounts deducted are appropriated to the commissioner of <br/>
<a id="pl.9.11"></a><var>9.11</var>finance and the commissioner of education for the preparation of local impact notes.<br/>
<a id="pl.9.12"></a><var>9.12</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.9.13"></a><var>9.13</var>2010 and thereafter.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.9.14"></a><var>9.14</var>    Sec. 10. <b> REPEALER.</b><br/>
<a id="pl.9.15"></a><var>9.15</var>(a) Minnesota Statutes 2008, section 477A.0124, subdivisions 3, 4, and 5, are <br/>
<a id="pl.9.16"></a><var>9.16</var>repealed.<br/>
<a id="pl.9.17"></a><var>9.17</var>(b) Laws 2008, chapter 366, article 7, section 18, is repealed.<br/>
<a id="pl.9.18"></a><var>9.18</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective for aids payable in calendar year <br/>
<a id="pl.9.19"></a><var>9.19</var>2010 and thereafter. Paragraph (b) is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="pl.9.22"></a><var>9.22</var><b>EFFICIENCY PROVISIONS</b><br/>

<a id="bill.2.1.0"></a><a id="pl.9.23"></a><var>9.23</var>    Section 1. <b>[6.90] COUNCIL ON LOCAL RESULTS AND INNOVATION.</b><br/>
<a id="pl.9.24"></a><var>9.24</var>    Subdivision 1. <b>Creation.</b> The Council on Local Results and Innovation consists of <br/>
<a id="pl.9.25"></a><var>9.25</var>11 members, as follows:<br/>
<a id="pl.9.26"></a><var>9.26</var>(1) the state auditor;<br/>
<a id="pl.9.27"></a><var>9.27</var>(2) two persons who are not members of the legislature, appointed by the chair of the <br/>
<a id="pl.9.28"></a><var>9.28</var>Property and Local Sales Tax Division of the house of representatives Taxes Committee;<br/>
<a id="pl.9.29"></a><var>9.29</var>(3) two persons who are not members of the legislature, appointed by the designated <br/>
<a id="pl.9.30"></a><var>9.30</var>lead minority member of the Property and Local Sales Tax Division of the house of <br/>
<a id="pl.9.31"></a><var>9.31</var>representatives Taxes Committee;<br/>
<a id="pl.9.32"></a><var>9.32</var>(4) two persons who are not members of the legislature, appointed by the chair of <br/>
<a id="pl.9.33"></a><var>9.33</var>the Taxes Division on Property Taxes of the senate Taxes Committee;<br/>
<a id="pl.10.1"></a><var>10.1</var>(5) two persons who are not members of the legislature, appointed by the designated <br/>
<a id="pl.10.2"></a><var>10.2</var>lead minority member of the Taxes Division on Property Taxes of the senate Taxes <br/>
<a id="pl.10.3"></a><var>10.3</var>Committee;<br/>
<a id="pl.10.4"></a><var>10.4</var>(6) one person who is not a member of the legislature, appointed by the Association <br/>
<a id="pl.10.5"></a><var>10.5</var>of Minnesota Counties; and<br/>
<a id="pl.10.6"></a><var>10.6</var>(7) one person who is not a member of the legislature, appointed by the League <br/>
<a id="pl.10.7"></a><var>10.7</var>of Minnesota Cities.<br/>
<a id="pl.10.8"></a><var>10.8</var>Each appointment under clauses (2) to (5) must include one person with expertise <br/>
<a id="pl.10.9"></a><var>10.9</var>or interest in county government and one person with expertise or interest in city <br/>
<a id="pl.10.10"></a><var>10.10</var>government. The appointing authorities must use their best efforts to ensure that a majority <br/>
<a id="pl.10.11"></a><var>10.11</var>of council members have experience with local performance measurement systems. The <br/>
<a id="pl.10.12"></a><var>10.12</var>membership of the council must include geographically balanced representation as well as <br/>
<a id="pl.10.13"></a><var>10.13</var>representation balanced between large and small jurisdictions. The appointments under <br/>
<a id="pl.10.14"></a><var>10.14</var>clauses (2) to (7) must be made within two months of the date of enactment.<br/>
<a id="pl.10.15"></a><var>10.15</var>Appointees to the council under clauses (2) to (5) serve terms of four years, except <br/>
<a id="pl.10.16"></a><var>10.16</var>that one of each of the initial appointments under clauses (2) to (5) shall serve a term of <br/>
<a id="pl.10.17"></a><var>10.17</var>two years; each appointing agent must designate which appointee is serving the two-year <br/>
<a id="pl.10.18"></a><var>10.18</var>term. Subsequent appointments for members appointed under clauses (2) to (5) must <br/>
<a id="pl.10.19"></a><var>10.19</var>be made by the council, including appointments to replace any appointees who might <br/>
<a id="pl.10.20"></a><var>10.20</var>resign from the council prior to completion of their term. Appointees under clauses (2) to <br/>
<a id="pl.10.21"></a><var>10.21</var>(5) are not eligible to vote on appointing their successor, nor on the successors of other <br/>
<a id="pl.10.22"></a><var>10.22</var>appointees whose terms are expiring contemporaneously. In making appointments, the <br/>
<a id="pl.10.23"></a><var>10.23</var>council shall make all possible efforts to reflect the geographical distribution and meet the <br/>
<a id="pl.10.24"></a><var>10.24</var>qualifications of appointees required of the initial appointees. Subsequent appointments <br/>
<a id="pl.10.25"></a><var>10.25</var>for members appointed under clauses (6) and (7) must be made by the original appointing <br/>
<a id="pl.10.26"></a><var>10.26</var>authority. Appointees to the council under clauses (2) to (7) may serve no more than two <br/>
<a id="pl.10.27"></a><var>10.27</var>consecutive terms.<br/>
<a id="pl.10.28"></a><var>10.28</var>    Subd. 2. <b>Duties.</b> (a) By February 15, 2010, the council shall develop a standard set <br/>
<a id="pl.10.29"></a><var>10.29</var>of approximately ten performance measures for counties and ten performance measures <br/>
<a id="pl.10.30"></a><var>10.30</var>for cities that aid residents, taxpayers, and state and local elected officials in determining <br/>
<a id="pl.10.31"></a><var>10.31</var>the efficacy of counties and cities in providing services, and measure residents' opinions <br/>
<a id="pl.10.32"></a><var>10.32</var>of those services. In developing its measures, the council must solicit input from private <br/>
<a id="pl.10.33"></a><var>10.33</var>citizens. Counties and cities that elect to participate in the standard measures system <br/>
<a id="pl.10.34"></a><var>10.34</var>shall report their results to the state auditor under section 6.91, who shall then compile <br/>
<a id="pl.10.35"></a><var>10.35</var>the results and make them available to all interested parties by publishing them on the <br/>
<a id="pl.10.36"></a><var>10.36</var>auditor's Web site and reporting them to the legislative tax committees. Each year after the <br/>
<a id="pl.11.1"></a><var>11.1</var>initial designation of performance measures, the council shall evaluate the usefulness of <br/>
<a id="pl.11.2"></a><var>11.2</var>the standard set of performance measures and may revise the set by adding or removing <br/>
<a id="pl.11.3"></a><var>11.3</var>measures as it deems appropriate.<br/>
<a id="pl.11.4"></a><var>11.4</var>(b) By February 15, 2011, the council shall develop minimum standards for <br/>
<a id="pl.11.5"></a><var>11.5</var>comprehensive performance measurement systems, which may vary by size and type <br/>
<a id="pl.11.6"></a><var>11.6</var>of governing jurisdiction.<br/>
<a id="pl.11.7"></a><var>11.7</var>(c) In addition to its specific duties under paragraphs (a) and (b), the council <br/>
<a id="pl.11.8"></a><var>11.8</var>shall generally promote the use of performance measurement for governmental entities <br/>
<a id="pl.11.9"></a><var>11.9</var>across the state and shall serve as a resource for all governmental entities seeking to <br/>
<a id="pl.11.10"></a><var>11.10</var>implement a system of local performance measurement. The council may highlight and <br/>
<a id="pl.11.11"></a><var>11.11</var>promote systems that are innovative, or are ones that it deems to be best practices of local <br/>
<a id="pl.11.12"></a><var>11.12</var>performance measurement systems across the state and nation. The council should give <br/>
<a id="pl.11.13"></a><var>11.13</var>preference in its recommendations to systems that are results-oriented. The council may, <br/>
<a id="pl.11.14"></a><var>11.14</var>with the cooperation of the state auditor, establish and foster a collaborative network <br/>
<a id="pl.11.15"></a><var>11.15</var>of practitioners of local performance measurement systems. The council may support <br/>
<a id="pl.11.16"></a><var>11.16</var>the Association of Minnesota Counties and the League of Minnesota Cities to seek and <br/>
<a id="pl.11.17"></a><var>11.17</var>receive private funding to provide expert technical assistance to local governments for <br/>
<a id="pl.11.18"></a><var>11.18</var>the purposes of replicating best practices.<br/>
<a id="pl.11.19"></a><var>11.19</var>    Subd. 3. <b>Reports.</b> (a) The council shall report its initial set of standard performance <br/>
<a id="pl.11.20"></a><var>11.20</var>measures to the Property and Local Sales Tax Division of the house of representatives <br/>
<a id="pl.11.21"></a><var>11.21</var>Taxes Committee and the Taxes Division on Property Taxes of the senate Taxes Committee <br/>
<a id="pl.11.22"></a><var>11.22</var>by February 28, 2010. <br/>
<a id="pl.11.23"></a><var>11.23</var>(b) By February 1 of each subsequent year, the council shall report to the committees <br/>
<a id="pl.11.24"></a><var>11.24</var>with jurisdiction over taxes in the house of representatives and the senate on participation <br/>
<a id="pl.11.25"></a><var>11.25</var>in and results of the performance measurement system, along with any revisions in the <br/>
<a id="pl.11.26"></a><var>11.26</var>standard set of performance measures for the upcoming year. These reports may be made <br/>
<a id="pl.11.27"></a><var>11.27</var>by the state auditor in lieu of the council if agreed to by the auditor and the council.<br/>
<a id="pl.11.28"></a><var>11.28</var>    Subd. 4. <b>Operation of council.</b> (a) The state auditor shall convene the initial <br/>
<a id="pl.11.29"></a><var>11.29</var>meeting of the council.<br/>
<a id="pl.11.30"></a><var>11.30</var>(b) The chair of the council shall be elected by the members. Once elected, a chair <br/>
<a id="pl.11.31"></a><var>11.31</var>shall serve a term of two years.<br/>
<a id="pl.11.32"></a><var>11.32</var>(c) Members of the council serve without compensation.<br/>
<a id="pl.11.33"></a><var>11.33</var>(d) Council members shall share and rotate responsibilities for administrative <br/>
<a id="pl.11.34"></a><var>11.34</var>support of the council.<br/>
<a id="pl.11.35"></a><var>11.35</var>(e) Chapter 13D does not apply to meetings of the council. Meetings of the council <br/>
<a id="pl.11.36"></a><var>11.36</var>must be open to the public and the council must provide notice of a meeting on the state <br/>
<a id="pl.12.1"></a><var>12.1</var>auditor's Web site at least seven days before the meeting. A meeting of the council occurs <br/>
<a id="pl.12.2"></a><var>12.2</var>when a quorum is present.<br/>
<a id="pl.12.3"></a><var>12.3</var>(f) The council must meet at least two times prior to the initial release of the standard <br/>
<a id="pl.12.4"></a><var>12.4</var>set of measurements. After the initial set has been developed, the council must meet a <br/>
<a id="pl.12.5"></a><var>12.5</var>minimum of once per year.<br/>
<a id="pl.12.6"></a><var>12.6</var>    Subd. 5. <b>Termination.</b> The council expires on January 1, 2019.<br/>
<a id="pl.12.7"></a><var>12.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.12.8"></a><var>12.8</var>    Sec. 2. <b>[6.91] LOCAL PERFORMANCE MEASUREMENT AND REPORTING.</b><br/>
<a id="pl.12.9"></a><var>12.9</var>    Subdivision 1. <b>Reports of local performance measures.</b> (a) A county or city that <br/>
<a id="pl.12.10"></a><var>12.10</var>elects to participate in the standard measures program must report its results to its citizens <br/>
<a id="pl.12.11"></a><var>12.11</var>annually through publication, direct mailing, posting on the jurisdiction's Web site, or <br/>
<a id="pl.12.12"></a><var>12.12</var>through a presentation at the jurisdiction's truth-in-taxation hearing under section 275.065.<br/>
<a id="pl.12.13"></a><var>12.13</var>(b) Each year, jurisdictions participating in the local performance measurement <br/>
<a id="pl.12.14"></a><var>12.14</var>and improvement program must file a report with the state auditor by July 1 in a form <br/>
<a id="pl.12.15"></a><var>12.15</var>prescribed by the auditor. All reports must include a declaration that the jurisdiction has <br/>
<a id="pl.12.16"></a><var>12.16</var>complied with, or will have complied with by the end of the year, the requirement in <br/>
<a id="pl.12.17"></a><var>12.17</var>paragraph (a). For jurisdictions participating in the standard measures program, the report <br/>
<a id="pl.12.18"></a><var>12.18</var>shall consist of the jurisdiction's results for the standard set of performance measures <br/>
<a id="pl.12.19"></a><var>12.19</var>under section 6.90, subdivision 2, paragraph (a). In 2011, jurisdictions participating in the <br/>
<a id="pl.12.20"></a><var>12.20</var>comprehensive performance measurement program must submit a resolution approved by <br/>
<a id="pl.12.21"></a><var>12.21</var>its local governing body indicating that it either has implemented or is in the process of <br/>
<a id="pl.12.22"></a><var>12.22</var>implementing a local performance measurement system that meets the minimum standards <br/>
<a id="pl.12.23"></a><var>12.23</var>specified by the council under section 6.90, subdivision 2, paragraph (b). In 2012 and <br/>
<a id="pl.12.24"></a><var>12.24</var>thereafter, jurisdictions participating in the comprehensive performance measurement <br/>
<a id="pl.12.25"></a><var>12.25</var>program must submit a statement approved by its local governing body affirming that <br/>
<a id="pl.12.26"></a><var>12.26</var>it has implemented a local performance measurement system that meets the minimum <br/>
<a id="pl.12.27"></a><var>12.27</var>standards specified by the council under section 6.90, subdivision 2, paragraph (b).<br/>
<a id="pl.12.28"></a><var>12.28</var>    Subd. 2. <b>Benefits of participation.</b> (a) A county or city that elects to participate in <br/>
<a id="pl.12.29"></a><var>12.29</var>the standard measures program for 2010 is:<br/>
<a id="pl.12.30"></a><var>12.30</var>(1) eligible for per capita reimbursement of $0.25 per capita, but not to exceed <br/>
<a id="pl.12.31"></a><var>12.31</var>$25,000 for any government entity;<br/>
<a id="pl.12.32"></a><var>12.32</var>(2) exempt from levy limits under sections 275.70 to 275.74 for taxes payable in <br/>
<a id="pl.12.33"></a><var>12.33</var>2011, if levy limits are in effect; and<br/>
<a id="pl.12.34"></a><var>12.34</var>(3) exempt from the truth-in-taxation public hearing requirement under section <br/>
<a id="pl.12.35"></a><var>12.35</var>275.065, subdivision 6, for taxes payable in 2011, if the hearing requirement is in effect.<br/>
<a id="pl.13.1"></a><var>13.1</var>(b) Any county or city that elects to participate in the standard measures program <br/>
<a id="pl.13.2"></a><var>13.2</var>for 2011 is eligible for per capita reimbursement of $0.25 per capita, but not to exceed <br/>
<a id="pl.13.3"></a><var>13.3</var>$25,000 for any government entity. Any jurisdiction participating in the comprehensive <br/>
<a id="pl.13.4"></a><var>13.4</var>performance measurement program is exempt from levy limits under sections 275.70 <br/>
<a id="pl.13.5"></a><var>13.5</var>to 275.74 for taxes payable in 2012 if levy limits are in effect, and is exempt from the <br/>
<a id="pl.13.6"></a><var>13.6</var>truth-in-taxation public hearing requirement under section 275.065, subdivision 6, for <br/>
<a id="pl.13.7"></a><var>13.7</var>taxes payable in 2012, if the hearing requirement is in effect.<br/>
<a id="pl.13.8"></a><var>13.8</var>(c) Any county or city that elects to participate in the standard measures program for <br/>
<a id="pl.13.9"></a><var>13.9</var>2012 or any year thereafter is eligible for per capita reimbursement of $0.25 per capita, <br/>
<a id="pl.13.10"></a><var>13.10</var>but not to exceed $25,000 for any government entity. Any jurisdiction participating in <br/>
<a id="pl.13.11"></a><var>13.11</var>the comprehensive performance measurement program for 2012 or any year thereafter is <br/>
<a id="pl.13.12"></a><var>13.12</var>exempt from levy limits under sections 275.70 to 275.74 for taxes payable in the following <br/>
<a id="pl.13.13"></a><var>13.13</var>year, if levy limits are in effect, and is exempt from the truth-in-taxation public hearing <br/>
<a id="pl.13.14"></a><var>13.14</var>requirement under section 275.065, subdivision 6, for taxes payable in the following <br/>
<a id="pl.13.15"></a><var>13.15</var>year, if the hearing requirement is in effect.<br/>
<a id="pl.13.16"></a><var>13.16</var>    Subd. 3. <b>Certification of participation.</b> (a) The state auditor shall certify to <br/>
<a id="pl.13.17"></a><var>13.17</var>the commissioner of revenue by August 1 of each year the counties and cities that are <br/>
<a id="pl.13.18"></a><var>13.18</var>participating in the standard measures program and the comprehensive performance <br/>
<a id="pl.13.19"></a><var>13.19</var>measurement program.<br/>
<a id="pl.13.20"></a><var>13.20</var>(b) The commissioner of revenue shall make per capita aid payments under this <br/>
<a id="pl.13.21"></a><var>13.21</var>section on the second payment date specified in section 477A.015, in the same year that <br/>
<a id="pl.13.22"></a><var>13.22</var>the measurements were reported.<br/>
<a id="pl.13.23"></a><var>13.23</var>(c) The commissioner of revenue shall notify each county and city that is entitled to <br/>
<a id="pl.13.24"></a><var>13.24</var>exemption from levy limits by August 10 of each levy year. <br/>
<a id="pl.13.25"></a><var>13.25</var>    Subd. 4. <b>Appropriation.</b> A sum sufficient to meet the requirements of this section <br/>
<a id="pl.13.26"></a><var>13.26</var>is annually appropriated from the general fund to the commissioner of revenue.<br/>
<a id="pl.13.27"></a><var>13.27</var><b>EFFECTIVE DATE.</b>This section is effective December 31, 2009.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.13.28"></a><var>13.28</var>    Sec. 3. Minnesota Statutes 2008, section 134.34, subdivision 1, is amended to read:<br/>
<a id="pl.13.29"></a><var>13.29</var>    Subdivision 1. <b>Local support levels.</b> (a) A regional library basic system support <br/>
<a id="pl.13.30"></a><var>13.30</var>grant shall be made to any regional public library system where there are at least three <br/>
<a id="pl.13.31"></a><var>13.31</var>participating counties and where each participating city and county is providing for <br/>
<a id="pl.13.32"></a><var>13.32</var>public library service support the lesser of (a) (1) an amount equivalent to .82 percent <br/>
<a id="pl.13.33"></a><var>13.33</var>of the average of the adjusted net tax capacity of the taxable property of that city or <br/>
<a id="pl.13.34"></a><var>13.34</var>county, as determined by the commissioner of revenue for the second, third, and fourth <br/>
<a id="pl.13.35"></a><var>13.35</var>year preceding that calendar year in 1991 and later years or (b) (2) a per capita amount <br/>
<a id="pl.14.1"></a><var>14.1</var>calculated under the provisions of this subdivision. The per capita amount is established <br/>
<a id="pl.14.2"></a><var>14.2</var>for calendar year 1993 as $7.62. In succeeding calendar years, the per capita amount shall <br/>
<a id="pl.14.3"></a><var>14.3</var>be increased by a percentage equal to one-half of the percentage by which the total state <br/>
<a id="pl.14.4"></a><var>14.4</var>adjusted net tax capacity of property as determined by the commissioner of revenue for <br/>
<a id="pl.14.5"></a><var>14.5</var>the second year preceding that calendar year increases over that total adjusted net tax <br/>
<a id="pl.14.6"></a><var>14.6</var>capacity for the third year preceding that calendar year. <br/>
<a id="pl.14.7"></a><var>14.7</var>(b) The minimum level of support specified under this subdivision or subdivision 4 <br/>
<a id="pl.14.8"></a><var>14.8</var>shall be certified annually to the participating cities and counties by the Department of <br/>
<a id="pl.14.9"></a><var>14.9</var>Education. If a city or county chooses to reduce its local support in accordance with <br/>
<a id="pl.14.10"></a><var>14.10</var>subdivision 4, paragraph (b) or (c), it shall notify its regional public library system. The <br/>
<a id="pl.14.11"></a><var>14.11</var>regional public library system shall notify the Department of Education that a revised <br/>
<a id="pl.14.12"></a><var>14.12</var>certification is required. The revised minimum level of support shall be certified to the <br/>
<a id="pl.14.13"></a><var>14.13</var>city or county by the Department of Education. <br/>
<a id="pl.14.14"></a><var>14.14</var>(c) A city which is a part of a regional public library system shall not be required to <br/>
<a id="pl.14.15"></a><var>14.15</var>provide this level of support if the property of that city is already taxable by the county <br/>
<a id="pl.14.16"></a><var>14.16</var>for the support of that regional public library system. In no event shall the Department <br/>
<a id="pl.14.17"></a><var>14.17</var>of Education require any city or county to provide a higher level of support than the <br/>
<a id="pl.14.18"></a><var>14.18</var>level of support specified in this section in order for a system to qualify for a regional <br/>
<a id="pl.14.19"></a><var>14.19</var>library basic system support grant. This section shall not be construed to prohibit a city <br/>
<a id="pl.14.20"></a><var>14.20</var>or county from providing a higher level of support for public libraries than the level of <br/>
<a id="pl.14.21"></a><var>14.21</var>support specified in this section.<br/>
<a id="pl.14.22"></a><var>14.22</var><b>EFFECTIVE DATE.</b>This section is effective for calendar years 2009 and <br/>
<a id="pl.14.23"></a><var>14.23</var>thereafter, except that the change in paragraph (a) is effective for calendar years 2011 <br/>
<a id="pl.14.24"></a><var>14.24</var>and thereafter.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.14.25"></a><var>14.25</var>    Sec. 4. Minnesota Statutes 2008, section 134.34, subdivision 4, is amended to read:<br/>
<a id="pl.14.26"></a><var>14.26</var>    Subd. 4. <b>Limitation.</b> (a) A regional library basic system support grant shall not be <br/>
<a id="pl.14.27"></a><var>14.27</var>made to a regional public library system for a participating city or county which decreases <br/>
<a id="pl.14.28"></a><var>14.28</var>the dollar amount provided for support for operating purposes of public library service <br/>
<a id="pl.14.29"></a><var>14.29</var>below the amount provided by it for the second or third preceding year, whichever is less. <br/>
<a id="pl.14.30"></a><var>14.30</var>For purposes of this subdivision and subdivision 1, any funds provided under section <br/>
<statute_ref><a id="pl.14.31"></a><var>14.31</var>473.757, subdivision 2
         </statute_ref>, for extending library hours of operation shall not be considered <br/>
<a id="pl.14.32"></a><var>14.32</var>amounts provided by a city or county for support for operating purposes of public library <br/>
<a id="pl.14.33"></a><var>14.33</var>service. This subdivision shall not apply to participating cities or counties where the <br/>
<a id="pl.14.34"></a><var>14.34</var>adjusted net tax capacity of that city or county has decreased, if the dollar amount of the <br/>
<a id="pl.14.35"></a><var>14.35</var>reduction in support is not greater than the dollar amount by which support would be <br/>
<a id="pl.15.1"></a><var>15.1</var>decreased if the reduction in support were made in direct proportion to the decrease in <br/>
<a id="pl.15.2"></a><var>15.2</var>adjusted net tax capacity.<br/>
<a id="pl.15.3"></a><var>15.3</var>(b) In addition, in any calendar year in which a city's or county's aid under sections <br/>
<a id="pl.15.4"></a><var>15.4</var>477A.011 to 477A.014 or credits under section 273.1384 are reduced after the city or <br/>
<a id="pl.15.5"></a><var>15.5</var>county has certified its levy payable in that year, it may reduce its local support by the <br/>
<a id="pl.15.6"></a><var>15.6</var>lesser of (1) ten percent, or (2) a percent equal to the percent the aid or credit reduction is <br/>
<a id="pl.15.7"></a><var>15.7</var>of the city's or county's revenue base as defined in paragraph (e), based on aids certified for <br/>
<a id="pl.15.8"></a><var>15.8</var>the current calendar year. For calendar year 2009 only, the reduction under this paragraph <br/>
<a id="pl.15.9"></a><var>15.9</var>shall be based on 2008 aid and credit reductions under the December 2008 unallotment, as <br/>
<a id="pl.15.10"></a><var>15.10</var>well as any aid and credit reductions in calendar year 2009. For calendar year 2009 only, <br/>
<a id="pl.15.11"></a><var>15.11</var>the commissioner of revenue will calculate the reductions under this paragraph and certify <br/>
<a id="pl.15.12"></a><var>15.12</var>them to the commissioner of education within 15 days of this provision becoming law.<br/>
<a id="pl.15.13"></a><var>15.13</var>(c) In addition, in any payable year in which the total amounts certified for city <br/>
<a id="pl.15.14"></a><var>15.14</var>or county aids under sections 477A.011 to 477A.014 are less than the total amounts <br/>
<a id="pl.15.15"></a><var>15.15</var>paid under those sections in the previous calendar year, a city or county may reduce its <br/>
<a id="pl.15.16"></a><var>15.16</var>local support by the lesser of (1) ten percent, or (2) a percent equal to the ratio of (i) the <br/>
<a id="pl.15.17"></a><var>15.17</var>difference between the sum of the aid it was paid under sections 477A.011 to 477A.014 <br/>
<a id="pl.15.18"></a><var>15.18</var>and the credit reimbursements it received under section 273.1384 in the previous calendar <br/>
<a id="pl.15.19"></a><var>15.19</var>year and the aid it is certified to be paid in the current calendar year under sections <br/>
<a id="pl.15.20"></a><var>15.20</var>477A.011 to 477A.014 and the credits estimated to be paid under section 273.1384, to (ii) <br/>
<a id="pl.15.21"></a><var>15.21</var>its revenue base for the previous year, based on aids actually paid in the previous calendar <br/>
<a id="pl.15.22"></a><var>15.22</var>year. The commissioner of revenue shall calculate the percent aid cut for each county and <br/>
<a id="pl.15.23"></a><var>15.23</var>city under this paragraph and certify the percentage cuts to the commissioner of education <br/>
<a id="pl.15.24"></a><var>15.24</var>by August 1 of the year prior to the year in which the reduced aids and credits are to be <br/>
<a id="pl.15.25"></a><var>15.25</var>paid. The percentage of reduction related to reductions to credit reimbursements under <br/>
<a id="pl.15.26"></a><var>15.26</var>section 273.1384 shall be based on the best estimation available as of July 30.<br/>
<a id="pl.15.27"></a><var>15.27</var>(d) Notwithstanding paragraph (a), (b), or (c), no city or county shall reduce its <br/>
<a id="pl.15.28"></a><var>15.28</var>support for public libraries below the minimum level specified in subdivision 1. No county <br/>
<a id="pl.15.29"></a><var>15.29</var>may make a reduction under paragraph (b) or (c) in a year in which it is receiving local <br/>
<a id="pl.15.30"></a><var>15.30</var>sales tax revenue under section 297A.994.<br/>
<a id="pl.15.31"></a><var>15.31</var>(e) For purposes of this subdivision, "revenue base" means the sum of:<br/>
<a id="pl.15.32"></a><var>15.32</var>(1) its levy for taxes payable in the current calendar year, including the levy on <br/>
<a id="pl.15.33"></a><var>15.33</var>the fiscal disparities distribution under section 276A.06, subdivision 3, paragraph (a), <br/>
<a id="pl.15.34"></a><var>15.34</var>or 473F.08, subdivision 3, paragraph (a);<br/>
<a id="pl.15.35"></a><var>15.35</var>(2) its aid under sections 477A.011 to 477A.014 in the current calendar year; and<br/>
<a id="pl.15.36"></a><var>15.36</var>(3) its taconite aid in the current calendar year under sections 298.28 and 298.282.<br/>
<a id="pl.16.1"></a><var>16.1</var><b>EFFECTIVE DATE.</b>This section is effective for support in calendar year 2009 and <br/>
<a id="pl.16.2"></a><var>16.2</var>thereafter for library grants paid in fiscal year 2010 and thereafter, except that the changes <br/>
<a id="pl.16.3"></a><var>16.3</var>in paragraph (a) are effective for support in calendar year 2010 and thereafter.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.16.4"></a><var>16.4</var>    Sec. 5. <b>[270C.991] PROPERTY TAX SYSTEM BENCHMARKS AND </b><br/>
<a id="pl.16.5"></a><var>16.5</var><b>CRITICAL INDICATORS.</b><br/>
<a id="pl.16.6"></a><var>16.6</var>    Subdivision 1. <b>Purpose.</b> State policy makers should be provided with the tools to <br/>
<a id="pl.16.7"></a><var>16.7</var>create a more accountable and efficient property tax system. This section provides the <br/>
<a id="pl.16.8"></a><var>16.8</var>principles and available tools necessary to work toward achieving that goal.<br/>
<a id="pl.16.9"></a><var>16.9</var>    Subd. 2. <b>Property tax principles.</b> To better evaluate the various property tax <br/>
<a id="pl.16.10"></a><var>16.10</var>proposals that come before the legislature, the following basic property tax principles <br/>
<a id="pl.16.11"></a><var>16.11</var>should be taken into consideration:<br/>
<a id="pl.16.12"></a><var>16.12</var>(1) transparent and understandable;<br/>
<a id="pl.16.13"></a><var>16.13</var>(2) simple and efficient;<br/>
<a id="pl.16.14"></a><var>16.14</var>(3) equitable;<br/>
<a id="pl.16.15"></a><var>16.15</var>(4) stable and predictable;<br/>
<a id="pl.16.16"></a><var>16.16</var>(5) compliance and accountability;<br/>
<a id="pl.16.17"></a><var>16.17</var>(6) competitive, both nationally and globally; and<br/>
<a id="pl.16.18"></a><var>16.18</var>(7) responsive to economic conditions.<br/>
<a id="pl.16.19"></a><var>16.19</var>    Subd. 3. <b>Major indicators.</b> There are many different types of indicators available to <br/>
<a id="pl.16.20"></a><var>16.20</var>legislators to evaluate tax legislation. Indicators are useful to have available as benchmarks <br/>
<a id="pl.16.21"></a><var>16.21</var>when legislators are contemplating changes. Each tool has its own limitation and no one <br/>
<a id="pl.16.22"></a><var>16.22</var>tool is perfect or should be used independently. Some of the tools measure the global <br/>
<a id="pl.16.23"></a><var>16.23</var>characteristics of the entire tax system, while others are only a measure of the property tax <br/>
<a id="pl.16.24"></a><var>16.24</var>impacts and its administration. The following is a list of the available major indicators:<br/>
<a id="pl.16.25"></a><var>16.25</var>(1) property tax principles scale, the components of which are listed in subdivision <br/>
<a id="pl.16.26"></a><var>16.26</var>2, as they relate to the various features of the property tax system;<br/>
<a id="pl.16.27"></a><var>16.27</var>(2) price of government report, as required under section 16A.102;<br/>
<a id="pl.16.28"></a><var>16.28</var>(3) tax incidence report, as required under section 270C.13;<br/>
<a id="pl.16.29"></a><var>16.29</var>(4) tax expenditure budget and report, as required under section 270C.11;<br/>
<a id="pl.16.30"></a><var>16.30</var>(5) state tax rankings;<br/>
<a id="pl.16.31"></a><var>16.31</var>(6) property tax levy plus aid data, and market value and net tax capacity data, by <br/>
<a id="pl.16.32"></a><var>16.32</var>taxing district for current and past years;<br/>
<a id="pl.16.33"></a><var>16.33</var>(7) effective tax rate (tax as a percent of market value) and the equalized effective <br/>
<a id="pl.16.34"></a><var>16.34</var>tax rate (effective tax rate adjusted for assessment differences);<br/>
<a id="pl.16.35"></a><var>16.35</var>(8) assessment sales ratio study, as required under section 127A.48;<br/>
<a id="pl.17.1"></a><var>17.1</var>(9) "Voss" database, which matches homeowner property taxes and household <br/>
<a id="pl.17.2"></a><var>17.2</var>income;<br/>
<a id="pl.17.3"></a><var>17.3</var>(10) revenue estimates under section 270C.11, subdivision 5, and state fiscal notes <br/>
<a id="pl.17.4"></a><var>17.4</var>under section 477A.03, subdivision 2b; and<br/>
<a id="pl.17.5"></a><var>17.5</var>(11) local impact notes, with improved local analysis as described in subdivision 7.<br/>
<a id="pl.17.6"></a><var>17.6</var>    Subd. 4. <b>Property tax working group.</b> (a) A property tax working group is <br/>
<a id="pl.17.7"></a><var>17.7</var>established as provided in this subdivision. The goals of the working group are:<br/>
<a id="pl.17.8"></a><var>17.8</var>(1) to investigate ways to simplify the property tax system and make advisory <br/>
<a id="pl.17.9"></a><var>17.9</var>recommendations on ways to make the system more understandable;<br/>
<a id="pl.17.10"></a><var>17.10</var>(2) to reexamine the property tax calendar to determine what changes could be made <br/>
<a id="pl.17.11"></a><var>17.11</var>to shorten the two-year cycle from assessment through property tax collection; and<br/>
<a id="pl.17.12"></a><var>17.12</var>(3) to determine the cost versus the benefits of the various property tax components, <br/>
<a id="pl.17.13"></a><var>17.13</var>including property classifications, credits, aids, exclusions, exemptions, and abatements, <br/>
<a id="pl.17.14"></a><var>17.14</var>and to suggest ways to achieve some of the goals in simpler and more cost-efficient ways.<br/>
<a id="pl.17.15"></a><var>17.15</var>(b) The 12-member working group shall consist of the following members:<br/>
<a id="pl.17.16"></a><var>17.16</var>(1) two state representatives, both appointed by the chair of the house of <br/>
<a id="pl.17.17"></a><var>17.17</var>representatives Tax Committee, one from the majority party and one from the minority <br/>
<a id="pl.17.18"></a><var>17.18</var>party; <br/>
<a id="pl.17.19"></a><var>17.19</var>(2) two senators, both appointed by the chair of the senate Tax Committee, one from <br/>
<a id="pl.17.20"></a><var>17.20</var>the majority party and one from the minority party; <br/>
<a id="pl.17.21"></a><var>17.21</var>(3) the commissioner of revenue, or designee; <br/>
<a id="pl.17.22"></a><var>17.22</var>(4) one person, appointed by the Association of Minnesota Counties;<br/>
<a id="pl.17.23"></a><var>17.23</var>(5) one person, appointed by the League of Minnesota Cities; <br/>
<a id="pl.17.24"></a><var>17.24</var>(6) one person, appointed by the Minnesota Association of Townships; <br/>
<a id="pl.17.25"></a><var>17.25</var>(7) one person, appointed by the Minnesota Chamber of Commerce;<br/>
<a id="pl.17.26"></a><var>17.26</var>(8) one person, appointed by the Minnesota Association of Assessing Officers; and<br/>
<a id="pl.17.27"></a><var>17.27</var>(9) two homeowners, one who is under 65 years of age, and one who is 65 years of <br/>
<a id="pl.17.28"></a><var>17.28</var>age or older, both appointed by the commissioner of revenue.<br/>
<a id="pl.17.29"></a><var>17.29</var>The commissioner of revenue shall chair the initial meeting, and the working group <br/>
<a id="pl.17.30"></a><var>17.30</var>shall elect a chair at that initial meeting. The working group meets at the call of the chair. <br/>
<a id="pl.17.31"></a><var>17.31</var>Members of the working group shall serve without compensation. The commissioner of <br/>
<a id="pl.17.32"></a><var>17.32</var>revenue must provide administrative support to the working group. Chapter 13D does <br/>
<a id="pl.17.33"></a><var>17.33</var>not apply to meetings of the working group. Meetings of the working group must be <br/>
<a id="pl.17.34"></a><var>17.34</var>open to the public and the working group must provide notice of a meeting to potentially <br/>
<a id="pl.17.35"></a><var>17.35</var>interested persons at least seven days before the meeting. A "meeting" of the council <br/>
<a id="pl.17.36"></a><var>17.36</var>occurs when a quorum is present.<br/>
<a id="pl.18.1"></a><var>18.1</var>(c) The working group shall make its advisory recommendations to the chairs of <br/>
<a id="pl.18.2"></a><var>18.2</var>the house of representatives and senate tax committees on or before February 1, 2011, <br/>
<a id="pl.18.3"></a><var>18.3</var>at which time the working group is finished and this subdivision expires. The advisory <br/>
<a id="pl.18.4"></a><var>18.4</var>recommendations should be reviewed by the tax committee under subdivision 5.<br/>
<a id="pl.18.5"></a><var>18.5</var>    Subd. 5. <b>Tax committee review and resolution.</b> On or before March 1, 2011, and <br/>
<a id="pl.18.6"></a><var>18.6</var>every two years thereafter, the house of representatives and senate tax committees must <br/>
<a id="pl.18.7"></a><var>18.7</var>review the major indicators as contained in subdivision 3, and ascertain the accountability <br/>
<a id="pl.18.8"></a><var>18.8</var>and efficiency of the property tax system. The house of representatives and senate tax <br/>
<a id="pl.18.9"></a><var>18.9</var>committees shall prepare a resolution on targets and benchmarks for use during the <br/>
<a id="pl.18.10"></a><var>18.10</var>current biennium.<br/>
<a id="pl.18.11"></a><var>18.11</var>    Subd. 6. <b>Department of Revenue; revenue estimates.</b> As provided under <br/>
<a id="pl.18.12"></a><var>18.12</var>section 270C.11, subdivision 5, the Department of Revenue is required to prepare an <br/>
<a id="pl.18.13"></a><var>18.13</var>estimate of the effect on the state's tax revenues which result from the passage of a <br/>
<a id="pl.18.14"></a><var>18.14</var>legislative bill establishing, extending, or restricting a tax expenditure. Beginning with <br/>
<a id="pl.18.15"></a><var>18.15</var>the 2010 legislative session, those revenue estimates must also identify how the property <br/>
<a id="pl.18.16"></a><var>18.16</var>tax principles, contained in subdivision 2, apply to the proposed tax changes. The <br/>
<a id="pl.18.17"></a><var>18.17</var>commissioner of revenue shall develop a scale for measuring the appropriate principles <br/>
<a id="pl.18.18"></a><var>18.18</var>for each proposed change. The department shall quantify the effects, if possible, or at a <br/>
<a id="pl.18.19"></a><var>18.19</var>minimum, shall identify the relevant factors so that legislators are aware of possible <br/>
<a id="pl.18.20"></a><var>18.20</var>outcomes, including administrative difficulties and cost. The interaction of property tax <br/>
<a id="pl.18.21"></a><var>18.21</var>shifting should be identified and quantified to the degree possible.<br/>
<a id="pl.18.22"></a><var>18.22</var>    Subd. 7. <b>Local impact notes.</b> Local impact notes are statements that provide <br/>
<a id="pl.18.23"></a><var>18.23</var>information about changes in local government responsibility, administration, and cost due <br/>
<a id="pl.18.24"></a><var>18.24</var>to changes in state law. The local impact note process seeks the participation of political <br/>
<a id="pl.18.25"></a><var>18.25</var>subdivisions to gather information as needed by the legislature. The local impact network <br/>
<a id="pl.18.26"></a><var>18.26</var>of political subdivisions shall consist of representation from associations from Minnesota <br/>
<a id="pl.18.27"></a><var>18.27</var>counties, cities, towns, and school districts, and other members as needed. They shall, <br/>
<a id="pl.18.28"></a><var>18.28</var>among other things, work with the legislature and the commissioner of finance to analyze:<br/>
<a id="pl.18.29"></a><var>18.29</var>(1) changes in tax revenues for local governments;<br/>
<a id="pl.18.30"></a><var>18.30</var>(2) changes in expenditures for local governments, including program and <br/>
<a id="pl.18.31"></a><var>18.31</var>administration costs; and<br/>
<a id="pl.18.32"></a><var>18.32</var>(3) incidences of tax shifting, including identifying the target audience (taxpayers <br/>
<a id="pl.18.33"></a><var>18.33</var>who benefit from the tax shift) and the impact audience (taxpayers who bear the burden of <br/>
<a id="pl.18.34"></a><var>18.34</var>the tax shift).<br/>
<a id="pl.18.35"></a><var>18.35</var>For tax bills, the local impact network of political subdivisions shall rate the impact <br/>
<a id="pl.18.36"></a><var>18.36</var>on Minnesota's tax system using the tax principles contained in subdivision 2.<br/>
<a id="pl.19.1"></a><var>19.1</var>Some of the cost for preparing this information is distributed to the local impact <br/>
<a id="pl.19.2"></a><var>19.2</var>network as provided under section 477A.03, subdivision 2b, paragraph (b).<br/>
<a id="pl.19.3"></a><var>19.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.19.4"></a><var>19.4</var>    Sec. 6. <b>[275.77] TEMPORARY SUSPENSION OF NEW OR INCREASED </b><br/>
<a id="pl.19.5"></a><var>19.5</var><b>MAINTENANCE OF EFFORT AND MATCHING FUND REQUIREMENTS.</b><br/>
<a id="pl.19.6"></a><var>19.6</var>    Subdivision 1. <b>Definitions.</b> For purposes of this section, the following terms have <br/>
<a id="pl.19.7"></a><var>19.7</var>the meanings given them:<br/>
<a id="pl.19.8"></a><var>19.8</var>(1) "maintenance of effort" means a requirement imposed on a political subdivision <br/>
<a id="pl.19.9"></a><var>19.9</var>by state law to continue providing funding of a service or program at a given or increasing <br/>
<a id="pl.19.10"></a><var>19.10</var>level based on its funding of the service and program in prior years; <br/>
<a id="pl.19.11"></a><var>19.11</var>(2) "matching fund requirements" means a requirement imposed on a political <br/>
<a id="pl.19.12"></a><var>19.12</var>subdivision by state law to fund a portion of a program or service but does not mean <br/>
<a id="pl.19.13"></a><var>19.13</var>required nonstate contributions to state capital funded projects or other nonstate <br/>
<a id="pl.19.14"></a><var>19.14</var>contributions required in order to receive a grant or loan the political subdivision has <br/>
<a id="pl.19.15"></a><var>19.15</var>requested or applied for; and<br/>
<a id="pl.19.16"></a><var>19.16</var>(3) "political subdivision" means a county, town, or statutory or home rule charter <br/>
<a id="pl.19.17"></a><var>19.17</var>city.<br/>
<a id="pl.19.18"></a><var>19.18</var>    Subd. 2. <b>Temporary suspension.</b> (a) Notwithstanding any other provision of law <br/>
<a id="pl.19.19"></a><var>19.19</var>to the contrary, any new maintenance of effort or matching fund requirement enacted <br/>
<a id="pl.19.20"></a><var>19.20</var>after January 1, 2009, that will require spending by a political subdivision shall not be <br/>
<a id="pl.19.21"></a><var>19.21</var>effective until January 1, 2012.<br/>
<a id="pl.19.22"></a><var>19.22</var>(b) Notwithstanding any other provision of law to the contrary, any changes to <br/>
<a id="pl.19.23"></a><var>19.23</var>existing maintenance of effort or matching fund requirement enacted after January 1, <br/>
<a id="pl.19.24"></a><var>19.24</var>2009, that will require new spending by a political subdivision shall not be effective <br/>
<a id="pl.19.25"></a><var>19.25</var>until January 1, 2012.<br/>
<a id="pl.19.26"></a><var>19.26</var>(c) The suspension of changes to existing maintenance of effort and matching fund <br/>
<a id="pl.19.27"></a><var>19.27</var>requirements under paragraph (b) does not apply if the spending is required by federal law <br/>
<a id="pl.19.28"></a><var>19.28</var>and there would be a cost to the state budget without the change.<br/>
<a id="pl.19.29"></a><var>19.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.19.30"></a><var>19.30</var>    Sec. 7. Minnesota Statutes 2008, section 477A.03, subdivision 2b, is amended to read:<br/>
<a id="pl.19.31"></a><var>19.31</var>    Subd. 2b. <b>Counties.</b> (a) For aids payable in 2009 and thereafter, the total aid <br/>
<a id="pl.19.32"></a><var>19.32</var>payable under section 
         <statute_ref>477A.0124, subdivision 3</statute_ref>, is $111,500,000 minus one-half of the <br/>
<a id="pl.19.33"></a><var>19.33</var>total aid amount determined under section 
         <statute_ref>477A.0124, subdivision 5</statute_ref>, paragraph (b), <br/>
<a id="pl.20.1"></a><var>20.1</var>subject to adjustment in subdivision 5. Each calendar year, $500,000 shall be retained <br/>
<a id="pl.20.2"></a><var>20.2</var>by the commissioner of revenue to make reimbursements to the commissioner of finance <br/>
<a id="pl.20.3"></a><var>20.3</var>for payments made under section 
         <statute_ref>611.27</statute_ref>. For calendar year 2004, the amount shall <br/>
<a id="pl.20.4"></a><var>20.4</var>be in addition to the payments authorized under section 
         <statute_ref>477A.0124, subdivision 1</statute_ref>. <br/>
<a id="pl.20.5"></a><var>20.5</var>For calendar year 2005 and subsequent years, the amount shall be deducted from the <br/>
<a id="pl.20.6"></a><var>20.6</var>appropriation under this paragraph. The reimbursements shall be to defray the additional <br/>
<a id="pl.20.7"></a><var>20.7</var>costs associated with court-ordered counsel under section 
         <statute_ref>611.27</statute_ref>. Any retained amounts <br/>
<a id="pl.20.8"></a><var>20.8</var>not used for reimbursement in a year shall be included in the next distribution of county <br/>
<a id="pl.20.9"></a><var>20.9</var>need aid that is certified to the county auditors for the purpose of property tax reduction <br/>
<a id="pl.20.10"></a><var>20.10</var>for the next taxes payable year.<br/>
<a id="pl.20.11"></a><var>20.11</var>    (b) For aids payable in 2009 and thereafter, the total aid under section 
         <statute_ref>477A.0124, <br/>
<a id="pl.20.12"></a><var>20.12</var>subdivision 4
         </statute_ref>, is $116,132,923 minus one-half of the total aid amount determined under <br/>
<a id="pl.20.13"></a><var>20.13</var>section 
         <statute_ref>477A.0124, subdivision 5</statute_ref>, paragraph (b), subject to adjustment in subdivision <br/>
<a id="pl.20.14"></a><var>20.14</var>5. The commissioner of finance shall bill the commissioner of revenue for the cost of <br/>
<a id="pl.20.15"></a><var>20.15</var>preparation of local impact notes as required by section 
         <statute_ref>3.987</statute_ref>, not to exceed $207,000 in <br/>
<a id="pl.20.16"></a><var>20.16</var>fiscal year 2004 and thereafter. The commissioner of education shall bill the commissioner <br/>
<a id="pl.20.17"></a><var>20.17</var>of revenue for the cost of preparation of local impact notes for school districts as <br/>
<a id="pl.20.18"></a><var>20.18</var>required by section 
         <statute_ref>3.987</statute_ref>, not to exceed $7,000 in fiscal year 2004 and thereafter. The <br/>
<a id="pl.20.19"></a><var>20.19</var>commissioner of revenue shall deduct the amounts billed under this paragraph from <br/>
<a id="pl.20.20"></a><var>20.20</var>the appropriation under this paragraph. The amounts deducted are appropriated to the <br/>
<a id="pl.20.21"></a><var>20.21</var>commissioner of finance and the commissioner of education for the preparation of local <br/>
<a id="pl.20.22"></a><var>20.22</var>impact notes. The commissioner of finance shall annually use at least $150,000 of the <br/>
<a id="pl.20.23"></a><var>20.23</var>$207,000 appropriation to contract with the representative associations for counties, cities, <br/>
<a id="pl.20.24"></a><var>20.24</var>towns, and school districts to establish a local impact network of political subdivisions <br/>
<a id="pl.20.25"></a><var>20.25</var>for preparing local impact notes that provide information to the legislature as provided in <br/>
<a id="pl.20.26"></a><var>20.26</var>section 270C.991, subdivision 7.<br/>
<a id="pl.20.27"></a><var>20.27</var><b>EFFECTIVE DATE.</b>This section is effective for fiscal year 2010 and thereafter.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="pl.20.30"></a><var>20.30</var><b>REDUCTION PROVISIONS</b><br/>

<a id="bill.3.1.0"></a><a id="pl.20.31"></a><var>20.31</var>    Section 1. Minnesota Statutes 2008, section 3.842, subdivision 4a, is amended to read:<br/>
<a id="pl.20.32"></a><var>20.32</var>    Subd. 4a. <b>Objections to rules.</b> (a) For purposes of this subdivision, "committee" <br/>
<a id="pl.20.33"></a><var>20.33</var>means the house of representatives policy committee or senate policy committee with <br/>
<a id="pl.20.34"></a><var>20.34</var>primary jurisdiction over state governmental operations. The commission, the Legislative <br/>
<a id="pl.20.35"></a><var>20.35</var>Commission on Mandate Reform, or a committee may object to a rule as provided in <br/>
<a id="pl.21.1"></a><var>21.1</var>this subdivision. If the commission, the Legislative Commission on Mandate Reform, <br/>
<a id="pl.21.2"></a><var>21.2</var>or a committee objects to all or some portion of a rule because the commission, the <br/>
<a id="pl.21.3"></a><var>21.3</var>Legislative Commission on Mandate Reform, or a committee considers it to be beyond <br/>
<a id="pl.21.4"></a><var>21.4</var>the procedural or substantive authority delegated to the agency, including a proposed rule <br/>
<a id="pl.21.5"></a><var>21.5</var>submitted under section 
         <statute_ref>14.15, subdivision 4</statute_ref>, or 
         <statute_ref>14.26, subdivision 3</statute_ref>, paragraph (c), the <br/>
<a id="pl.21.6"></a><var>21.6</var>commission, the Legislative Commission on Mandate Reform, or a committee may file <br/>
<a id="pl.21.7"></a><var>21.7</var>that objection in the Office of the Secretary of State. The filed objection must contain a <br/>
<a id="pl.21.8"></a><var>21.8</var>concise statement of the commission's, the Legislative Commission on Mandate Reform, <br/>
<a id="pl.21.9"></a><var>21.9</var>or a committee's reasons for its action. An objection to a proposed rule submitted by the <br/>
<a id="pl.21.10"></a><var>21.10</var>commission, the Legislative Commission on Mandate Reform, or a committee under <br/>
<a id="pl.21.11"></a><var>21.11</var>section 
         <statute_ref>14.15, subdivision 4</statute_ref>, or 
         <statute_ref>14.26, subdivision 3</statute_ref>, paragraph (c), may not be filed <br/>
<a id="pl.21.12"></a><var>21.12</var>before the rule is adopted.  <br/>
<a id="pl.21.13"></a><var>21.13</var>(b) The secretary of state shall affix to each objection a certification of the date and <br/>
<a id="pl.21.14"></a><var>21.14</var>time of its filing and as soon after the objection is filed as practicable shall transmit a <br/>
<a id="pl.21.15"></a><var>21.15</var>certified copy of it to the agency issuing the rule in question and to the revisor of statutes. <br/>
<a id="pl.21.16"></a><var>21.16</var>The secretary of state shall also maintain a permanent register open to public inspection of <br/>
<a id="pl.21.17"></a><var>21.17</var>all objections by the commission, the Legislative Commission on Mandate Reform, or <br/>
<a id="pl.21.18"></a><var>21.18</var>a committee.<br/>
<a id="pl.21.19"></a><var>21.19</var>(c) The commission, the Legislative Commission on Mandate Reform, or a <br/>
<a id="pl.21.20"></a><var>21.20</var>committee shall publish and index an objection filed under this section in the next issue <br/>
<a id="pl.21.21"></a><var>21.21</var>of the State Register. The revisor of statutes shall indicate the existence of the objection <br/>
<a id="pl.21.22"></a><var>21.22</var>adjacent to the rule in question when that rule is published in Minnesota Rules.<br/>
<a id="pl.21.23"></a><var>21.23</var>(d) Within 14 days after the filing of an objection by the commission, the Legislative <br/>
<a id="pl.21.24"></a><var>21.24</var>Commission on Mandate Reform, or a committee to a rule, the issuing agency shall <br/>
<a id="pl.21.25"></a><var>21.25</var>respond in writing to the objecting entity. After receipt of the response, the commission, <br/>
<a id="pl.21.26"></a><var>21.26</var>the Legislative Commission on Mandate Reform, or a committee may withdraw or modify <br/>
<a id="pl.21.27"></a><var>21.27</var>its objection.<br/>
<a id="pl.21.28"></a><var>21.28</var>(e) After the filing of an objection by the commission, the Legislative Commission <br/>
<a id="pl.21.29"></a><var>21.29</var>on Mandate Reform, or a committee that is not subsequently withdrawn, the burden is <br/>
<a id="pl.21.30"></a><var>21.30</var>upon the agency in any proceeding for judicial review or for enforcement of the rule to <br/>
<a id="pl.21.31"></a><var>21.31</var>establish that the whole or portion of the rule objected to is valid.<br/>
<a id="pl.21.32"></a><var>21.32</var>(f) The failure of the commission, the Legislative Commission on Mandate Reform, <br/>
<a id="pl.21.33"></a><var>21.33</var>or a committee to object to a rule is not an implied legislative authorization of its validity.<br/>
<a id="pl.21.34"></a><var>21.34</var>(g) In accordance with sections 
         <statute_ref>14.44</statute_ref> and 
         <statute_ref>14.45</statute_ref>, the commission, the Legislative <br/>
<a id="pl.21.35"></a><var>21.35</var>Commission on Mandate Reform, or a committee may petition for a declaratory judgment <br/>
<a id="pl.21.36"></a><var>21.36</var>to determine the validity of a rule objected to by the commission, the Legislative <br/>
<a id="pl.22.1"></a><var>22.1</var>Commission on Mandate Reform, or a committee. The action must be started within two <br/>
<a id="pl.22.2"></a><var>22.2</var>years after an objection is filed in the Office of the Secretary of State.  <br/>
<a id="pl.22.3"></a><var>22.3</var>(h) The commission, the Legislative Commission on Mandate Reform, or a <br/>
<a id="pl.22.4"></a><var>22.4</var>committee may intervene in litigation arising from agency action. For purposes of this <br/>
<a id="pl.22.5"></a><var>22.5</var>paragraph, agency action means the whole or part of a rule, or the failure to issue a rule.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.22.6"></a><var>22.6</var>    Sec. 2. Minnesota Statutes 2008, section 3.843, is amended to read:<br/>
<a id="pl.22.7"></a><var>22.7</var><b>3.843 PUBLIC HEARINGS BY STATE AGENCIES.</b><br/>
<a id="pl.22.8"></a><var>22.8</var>By a vote of a majority of its members, the commission or the Legislative <br/>
<a id="pl.22.9"></a><var>22.9</var>Commission on Mandate Reform may request any agency issuing rules to hold a <br/>
<a id="pl.22.10"></a><var>22.10</var>public hearing in respect to recommendations made under section 
         <statute_ref>3.842</statute_ref>, including <br/>
<a id="pl.22.11"></a><var>22.11</var>recommendations made by the commission or the Legislative Commission on Mandate <br/>
<a id="pl.22.12"></a><var>22.12</var>Reform to promote adequate and proper rules by that agency and recommendations <br/>
<a id="pl.22.13"></a><var>22.13</var>contained in the commission's biennial report. The agency shall give notice as provided in <br/>
<a id="pl.22.14"></a><var>22.14</var>section 
         <statute_ref>14.14, subdivision 1</statute_ref>, of a hearing under this section, to be conducted in accordance <br/>
<a id="pl.22.15"></a><var>22.15</var>with sections 
         <statute_ref>14.05</statute_ref> to 
         <statute_ref>14.28</statute_ref>. The hearing must be held not more than 60 days after receipt <br/>
<a id="pl.22.16"></a><var>22.16</var>of the request or within any other longer time period specified by the commission or the <br/>
<a id="pl.22.17"></a><var>22.17</var>Legislative Commission on Mandate Reform in the request.  <br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.22.18"></a><var>22.18</var>    Sec. 3. <b>[3.99] LEGISLATIVE COMMISSION ON MANDATE REFORM; </b><br/>
<a id="pl.22.19"></a><var>22.19</var><b>ESTABLISHED.</b><br/>
<a id="pl.22.20"></a><var>22.20</var>    Subdivision 1. <b>Established.</b> The Legislative Commission on Mandate Reform is <br/>
<a id="pl.22.21"></a><var>22.21</var>established as provided in this section, with the powers and duties given it in sections <br/>
<a id="pl.22.22"></a><var>22.22</var>3.842, subdivision 4a; 3.843; and 3.99 to 3.992.<br/>
<a id="pl.22.23"></a><var>22.23</var>    Subd. 2. <b>Membership.</b> The commission consists of four senators appointed by the <br/>
<a id="pl.22.24"></a><var>22.24</var>senate Subcommittee on Committees of the Committee on Rules and Administration, <br/>
<a id="pl.22.25"></a><var>22.25</var>three senators appointed by the senate minority leader, four state representatives appointed <br/>
<a id="pl.22.26"></a><var>22.26</var>by the speaker of the house, and three state representatives appointed by the house <br/>
<a id="pl.22.27"></a><var>22.27</var>of representatives minority leader. The appointing authorities must ensure balanced <br/>
<a id="pl.22.28"></a><var>22.28</var>geographic representation. Each appointing authority must make appointments as soon as <br/>
<a id="pl.22.29"></a><var>22.29</var>possible.<br/>
<a id="pl.22.30"></a><var>22.30</var>    Subd. 3. <b>Terms; vacancies.</b> Members of the commission serve for a two-year term <br/>
<a id="pl.22.31"></a><var>22.31</var>beginning upon appointment and expiring upon appointment of a successor after the <br/>
<a id="pl.22.32"></a><var>22.32</var>opening of the next regular session of the legislature in the odd-numbered year. A vacancy <br/>
<a id="pl.22.33"></a><var>22.33</var>in the membership of the commission must be filled for the unexpired term in a manner <br/>
<a id="pl.22.34"></a><var>22.34</var>that preserves the representation established by this section.<br/>
<a id="pl.23.1"></a><var>23.1</var>    Subd. 4. <b>Chair.</b> The commission must meet as soon as practicable after members <br/>
<a id="pl.23.2"></a><var>23.2</var>are appointed in each odd-numbered year to elect its chair and other officers as it may <br/>
<a id="pl.23.3"></a><var>23.3</var>determine necessary. A chair serves a two-year term, expiring in the odd-numbered year <br/>
<a id="pl.23.4"></a><var>23.4</var>after a successor is elected. The chair must alternate biennially between the senate and the <br/>
<a id="pl.23.5"></a><var>23.5</var>house of representatives.<br/>
<a id="pl.23.6"></a><var>23.6</var>    Subd. 5. <b>Compensation.</b> Members may be reimbursed for their reasonable <br/>
<a id="pl.23.7"></a><var>23.7</var>expenses as members of the legislature.<br/>
<a id="pl.23.8"></a><var>23.8</var>    Subd. 6. <b>Staff.</b> The Legislative Coordinating Commission must provide <br/>
<a id="pl.23.9"></a><var>23.9</var>administrative support to the commission, including secretarial services, record keeping, <br/>
<a id="pl.23.10"></a><var>23.10</var>and grants administration.<br/>
<a id="pl.23.11"></a><var>23.11</var>    Subd. 7. <b>Meetings; procedures; tie votes.</b> The first meeting of the biennium must <br/>
<a id="pl.23.12"></a><var>23.12</var>be convened by the member designated by the senate majority leader if a senator is to chair <br/>
<a id="pl.23.13"></a><var>23.13</var>the commission for the biennium, or by the speaker of the house if a state representative <br/>
<a id="pl.23.14"></a><var>23.14</var>is to chair the commission for the biennium. The commission meets at the call of the <br/>
<a id="pl.23.15"></a><var>23.15</var>chair. Commission action requires a positive vote of at least four house of representatives <br/>
<a id="pl.23.16"></a><var>23.16</var>members and at least four senate members.<br/>
<a id="pl.23.17"></a><var>23.17</var>    Subd. 8. <b>Funding.</b> The Legislative Coordinating Commission shall annually bill the <br/>
<a id="pl.23.18"></a><var>23.18</var>commissioner of revenue for costs incurred by the Legislative Coordinating Commission <br/>
<a id="pl.23.19"></a><var>23.19</var>in providing administrative support and to make the grants authorized by the legislative <br/>
<a id="pl.23.20"></a><var>23.20</var>commission on unnecessary mandates, in an amount not to exceed $100,000 per year. The <br/>
<a id="pl.23.21"></a><var>23.21</var>commissioner of revenue shall deduct one-half of the certified costs from payments to <br/>
<a id="pl.23.22"></a><var>23.22</var>counties under section 477A.03, subdivision 2b, and one-half of the certified costs from <br/>
<a id="pl.23.23"></a><var>23.23</var>payments to cities under section 477A.03, subdivision 2a.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.23.24"></a><var>23.24</var>    Sec. 4. <b>[3.991] LEGISLATIVE COMMISSION ON MANDATE REFORM; </b><br/>
<a id="pl.23.25"></a><var>23.25</var><b>REVIEW AND RECOMMENDATIONS TO LEGISLATURE.</b><br/>
<a id="pl.23.26"></a><var>23.26</var>The Legislative Commission on Mandate Reform must solicit from local <br/>
<a id="pl.23.27"></a><var>23.27</var>governments information on state laws and rules that local governments consider to be <br/>
<a id="pl.23.28"></a><var>23.28</var>problematic mandates. The commission must review the mandates identified and consider <br/>
<a id="pl.23.29"></a><var>23.29</var>why each mandate was enacted or adopted, whether the reason for it still exists, the costs <br/>
<a id="pl.23.30"></a><var>23.30</var>to local governments to comply with the mandate, and whether repeal or modification <br/>
<a id="pl.23.31"></a><var>23.31</var>of the mandate is appropriate. Before the beginning of each legislative session, the <br/>
<a id="pl.23.32"></a><var>23.32</var>commission must prepare for introduction a bill to repeal or modify those laws or rules the <br/>
<a id="pl.23.33"></a><var>23.33</var>commission determines are unnecessary.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.24.1"></a><var>24.1</var>    Sec. 5. <b>[3.992] LEGISLATIVE COMMISSION ON MANDATE REFORM; </b><br/>
<a id="pl.24.2"></a><var>24.2</var><b>GRANTS.</b><br/>
<a id="pl.24.3"></a><var>24.3</var>Upon recommendation of the Legislative Commission on Mandate Reform, <br/>
<a id="pl.24.4"></a><var>24.4</var>the commissioner of revenue may make grants to the League of Minnesota Cities, <br/>
<a id="pl.24.5"></a><var>24.5</var>the Association of Minnesota Counties, Minnesota Association of Townships, other <br/>
<a id="pl.24.6"></a><var>24.6</var>organizations representing local governments, the Board of Regents of the University of <br/>
<a id="pl.24.7"></a><var>24.7</var>Minnesota, the Board of Trustees of Minnesota State Colleges and Universities, or other <br/>
<a id="pl.24.8"></a><var>24.8</var>accredited postsecondary institutions to research and make recommendations on mandate <br/>
<a id="pl.24.9"></a><var>24.9</var>reform. A grant may be in any amount up to $........ The commissioner must specify the <br/>
<a id="pl.24.10"></a><var>24.10</var>work to be done, the completion date, and the maximum grant amount, and may specify <br/>
<a id="pl.24.11"></a><var>24.11</var>any other conditions the commissioner deems necessary or useful.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.24.12"></a><var>24.12</var>    Sec. 6. <b>[3.993] EXPIRATION.</b><br/>
<a id="pl.24.13"></a><var>24.13</var>Sections 3.99 to 3.992 expire June 30, 2013.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.24.14"></a><var>24.14</var>    Sec. 7. <b>[14.128] EFFECTIVE DATE FOR RULES REQUIRING LOCAL </b><br/>
<a id="pl.24.15"></a><var>24.15</var><b>IMPLEMENTATION.</b><br/>
<a id="pl.24.16"></a><var>24.16</var>    Subdivision 1. <b>Determination.</b> An agency must determine if a local government is <br/>
<a id="pl.24.17"></a><var>24.17</var>required to adopt or amend an ordinance or other regulation to comply with a proposed <br/>
<a id="pl.24.18"></a><var>24.18</var>agency rule.  An agency must make this determination before the close of the hearing <br/>
<a id="pl.24.19"></a><var>24.19</var>record or before the agency submits the record to the administrative law judge if there <br/>
<a id="pl.24.20"></a><var>24.20</var>is no hearing.  The administrative law judge must review and approve or disapprove <br/>
<a id="pl.24.21"></a><var>24.21</var>the agency's determination. "Local government" means a town, county, or home rule <br/>
<a id="pl.24.22"></a><var>24.22</var>charter or statutory city.<br/>
<a id="pl.24.23"></a><var>24.23</var>    Subd. 2. <b>Effective dates.</b>  If the agency determines that the proposed rule requires <br/>
<a id="pl.24.24"></a><var>24.24</var>adoption or amendment of an ordinance or other regulation, or if the administrative law <br/>
<a id="pl.24.25"></a><var>24.25</var>judge disapproves the agency's determination that the rule does not have this effect, the <br/>
<a id="pl.24.26"></a><var>24.26</var>rule may not become effective until:<br/>
<a id="pl.24.27"></a><var>24.27</var>(1) the next  July 1 or January 1 after notice of final adoption is published in the <br/>
<a id="pl.24.28"></a><var>24.28</var>State Register; or<br/>
<a id="pl.24.29"></a><var>24.29</var>(2) a later date provided by law or specified in the proposed rule.<br/>
<a id="pl.24.30"></a><var>24.30</var>    Subd. 3. <b>Exceptions.</b> Subdivision 2 does not apply:<br/>
<a id="pl.24.31"></a><var>24.31</var>(1) to a rule adopted under section 14.388, 14.389, or 14.3895, or under another law <br/>
<a id="pl.24.32"></a><var>24.32</var>specifying that the rulemaking procedures of this chapter do not apply;<br/>
<a id="pl.25.1"></a><var>25.1</var>(2)  if the administrative law judge approves an agency's determination that the rule <br/>
<a id="pl.25.2"></a><var>25.2</var>has been proposed pursuant to a specific federal statutory or regulatory mandate that <br/>
<a id="pl.25.3"></a><var>25.3</var>requires the rule to take effect before the date specified in subdivision 1; or<br/>
<a id="pl.25.4"></a><var>25.4</var>(3) if the governor waives application of subdivision 2.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.25.5"></a><var>25.5</var>    Sec. 8. Minnesota Statutes 2008, section 16C.28, subdivision 1a, is amended to read:<br/>
<a id="pl.25.6"></a><var>25.6</var>    Subd. 1a. <b>Establishment and purpose.</b> (a) The state recognizes the importance of <br/>
<a id="pl.25.7"></a><var>25.7</var>the inclusion of a best value contracting system for construction as an alternative to the <br/>
<a id="pl.25.8"></a><var>25.8</var>current low-bid system of procurement. In order to accomplish that goal, state and local <br/>
<a id="pl.25.9"></a><var>25.9</var>governmental entities shall be able to choose the best value system in different phases.<br/>
<a id="pl.25.10"></a><var>25.10</var>    (b) "Best value" means the procurement method defined in section 
         <statute_ref>16C.02</statute_ref>, <br/>
<a id="pl.25.11"></a><var>25.11</var>subdivision 4a.<br/>
<a id="pl.25.12"></a><var>25.12</var>    (c) The following entities are eligible to participate in phase I:  <br/>
<a id="pl.25.13"></a><var>25.13</var>    (1) state agencies; <br/>
<a id="pl.25.14"></a><var>25.14</var>    (2) counties;<br/>
<a id="pl.25.15"></a><var>25.15</var>    (3) cities; and<br/>
<a id="pl.25.16"></a><var>25.16</var>    (4) school districts with the highest 25 percent enrollment of students in the state.<br/>
<a id="pl.25.17"></a><var>25.17</var>Phase I begins on July 1, 2007.<br/>
<a id="pl.25.18"></a><var>25.18</var>    (d) The following entities are eligible to participate in phase II:<br/>
<a id="pl.25.19"></a><var>25.19</var>    (1)  those entities included in phase I; and <br/>
<a id="pl.25.20"></a><var>25.20</var>    (2)  school districts with the highest 50 percent enrollment of students in the state. <br/>
<a id="pl.25.21"></a><var>25.21</var>Phase II begins two years from July 1, 2007.<br/>
<a id="pl.25.22"></a><var>25.22</var>    (e) The following entities are eligible to participate in phase III: <br/>
<a id="pl.25.23"></a><var>25.23</var>    (1)  all entities included in phases I and II; and <br/>
<a id="pl.25.24"></a><var>25.24</var>    (2)  all other townships, school districts, and political subdivisions in the state. <br/>
<a id="pl.25.25"></a><var>25.25</var>Phase III begins three years from July 1, 2007.<br/>
<a id="pl.25.26"></a><var>25.26</var>    (f) The commissioner or any agency for which competitive bids or proposals are <br/>
<a id="pl.25.27"></a><var>25.27</var>required may not use best value contracting as defined in section 
<statute_ref>16C.02, subdivision 4a</statute_ref>, <br/>
<a id="pl.25.28"></a><var>25.28</var>for more than one project annually, or 20 percent of its projects, whichever is greater, in <br/>
<a id="pl.25.29"></a><var>25.29</var>each of the first three fiscal years in which best value construction contracting is used.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.25.30"></a><var>25.30</var>    Sec. 9. Minnesota Statutes 2008, section 306.243, is amended by adding a subdivision <br/>
<a id="pl.25.31"></a><var>25.31</var>to read:<br/>
<a id="pl.26.1"></a><var>26.1</var>    Subd. 6. <b>Abandonment; end of operation as cemetery.</b> A county that has accepted <br/>
<a id="pl.26.2"></a><var>26.2</var>responsibility for an abandoned cemetery may prohibit further burials in the abandoned <br/>
<a id="pl.26.3"></a><var>26.3</var>cemetery, and may cease all acceptance of responsibility for new burials.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.26.4"></a><var>26.4</var>    Sec. 10. Minnesota Statutes 2008, section 344.18, is amended to read:<br/>
<a id="pl.26.5"></a><var>26.5</var><b>344.18 COMPENSATION OF VIEWERS.</b><br/>
<a id="pl.26.6"></a><var>26.6</var>Fence viewers must be paid for their services by the person employing them at the <br/>
<a id="pl.26.7"></a><var>26.7</var>rate of $15 each for each day's employment. $60 must be deposited with the town or city <br/>
<a id="pl.26.8"></a><var>26.8</var>treasurer before the service is performed. Upon completion of the service, any of the $60 <br/>
<a id="pl.26.9"></a><var>26.9</var>not spent to compensate the fence viewers must be returned to the depositor. The town <br/>
<a id="pl.26.10"></a><var>26.10</var>board may by resolution require the person employing the fence viewers to post a bond or <br/>
<a id="pl.26.11"></a><var>26.11</var>other security acceptable to the board for the total estimated costs before the viewing takes <br/>
<a id="pl.26.12"></a><var>26.12</var>place. The total estimated costs may include the cost of professional and other services, <br/>
<a id="pl.26.13"></a><var>26.13</var>hearing costs, administrative costs, recording costs, and other costs and expenses which <br/>
<a id="pl.26.14"></a><var>26.14</var>the town may incur in connection with the viewing.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.26.15"></a><var>26.15</var>    Sec. 11. Minnesota Statutes 2008, section 365.28, is amended to read:<br/>
<a id="pl.26.16"></a><var>26.16</var><b>365.28 PUBLIC BURIAL GROUND IS TOWN'S AFTER TEN YEARS.</b><br/>
<a id="pl.26.17"></a><var>26.17</var>A tract of land in a town becomes town property after it has been used as a public <br/>
<a id="pl.26.18"></a><var>26.18</var>burial ground for ten years if the tract is not owned by a cemetery association. The town <br/>
<a id="pl.26.19"></a><var>26.19</var>board shall control the burial ground as it controls other town cemeteries. A town that has <br/>
<a id="pl.26.20"></a><var>26.20</var>assumed ownership of a cemetery may prohibit further burials in it.<br/>
<br/>
<a id="bill.3.12.0"></a><a id="pl.26.21"></a><var>26.21</var>    Sec. 12. Minnesota Statutes 2008, section 373.052, subdivision 1, is amended to read:<br/>
<a id="pl.26.22"></a><var>26.22</var>    Subdivision 1. <b>Business days.</b> County offices shall be open for public business on <br/>
<a id="pl.26.23"></a><var>26.23</var>all at least four business days per week except (a) legal holidays, (b) holidays established <br/>
<a id="pl.26.24"></a><var>26.24</var>by the county board pursuant to contract with certified employee bargaining units, and <br/>
<a id="pl.26.25"></a><var>26.25</var>(c) emergency situations. For purposes of this section "business day" means Monday, <br/>
<a id="pl.26.26"></a><var>26.26</var>Tuesday, Wednesday, Thursday, and Friday.<br/>
<br/>
<a id="bill.3.13.0"></a><a id="pl.26.27"></a><var>26.27</var>    Sec. 13. Minnesota Statutes 2008, section 429.041, subdivision 1, is amended to read:<br/>
<a id="pl.26.28"></a><var>26.28</var>    Subdivision 1. <b>Plans and specifications, advertisement for bids.</b> When the <br/>
<a id="pl.26.29"></a><var>26.29</var>council determines to make any improvement, it shall let the contract for all or part of <br/>
<a id="pl.26.30"></a><var>26.30</var>the work, or order all or part of the work done by day labor or otherwise as authorized by <br/>
<a id="pl.26.31"></a><var>26.31</var>subdivision 2, no later than one year after the adoption of the resolution ordering such <br/>
<a id="pl.26.32"></a><var>26.32</var>improvement, unless a different time limit is specifically stated in the resolution ordering <br/>
<a id="pl.27.1"></a><var>27.1</var>the improvement. The council shall cause plans and specifications of the improvement <br/>
<a id="pl.27.2"></a><var>27.2</var>to be made, or if previously made, to be modified, if necessary, and to be approved and <br/>
<a id="pl.27.3"></a><var>27.3</var>filed with the clerk, and if the estimated cost exceeds $50,000 the amount in section <br/>
<a id="pl.27.4"></a><var>27.4</var>471.345, subdivision 3, shall advertise for bids for the improvement in the newspaper and <br/>
<a id="pl.27.5"></a><var>27.5</var>such other papers and for such length of time as it may deem advisable. If the estimated <br/>
<a id="pl.27.6"></a><var>27.6</var>cost exceeds $100,000 twice the amount in section 471.345, subdivision 3, publication <br/>
<a id="pl.27.7"></a><var>27.7</var>shall be made no less than three weeks before the last day for submission of bids once <br/>
<a id="pl.27.8"></a><var>27.8</var>in the newspaper and at least once in either a newspaper published in a city of the first <br/>
<a id="pl.27.9"></a><var>27.9</var>class or a trade paper. To be eligible as such a trade paper, a publication shall have all <br/>
<a id="pl.27.10"></a><var>27.10</var>the qualifications of a legal newspaper except that instead of the requirement that it shall <br/>
<a id="pl.27.11"></a><var>27.11</var>contain general and local news, such trade paper shall contain building and construction <br/>
<a id="pl.27.12"></a><var>27.12</var>news of interest to contractors in this state, among whom it shall have a general circulation. <br/>
<a id="pl.27.13"></a><var>27.13</var>The advertisement shall specify the work to be done, shall state the time when the bids <br/>
<a id="pl.27.14"></a><var>27.14</var>will be publicly opened for consideration by the council, which shall be not less than ten <br/>
<a id="pl.27.15"></a><var>27.15</var>days after the first publication of the advertisement when the estimated cost is less than <br/>
<a id="pl.27.16"></a><var>27.16</var>$100,000 twice the amount in section 471.345, subdivision 3, and not less than three <br/>
<a id="pl.27.17"></a><var>27.17</var>weeks after such publication in other cases, and shall state that no bids will be considered <br/>
<a id="pl.27.18"></a><var>27.18</var>unless sealed and filed with the clerk and accompanied by a cash deposit, cashier's check, <br/>
<a id="pl.27.19"></a><var>27.19</var>bid bond, or certified check payable to the clerk, for such percentage of the amount of the <br/>
<a id="pl.27.20"></a><var>27.20</var>bid as the council may specify. In providing for the advertisement for bids the council <br/>
<a id="pl.27.21"></a><var>27.21</var>may direct that the bids shall be opened publicly by two or more designated officers or <br/>
<a id="pl.27.22"></a><var>27.22</var>agents of the municipality and tabulated in advance of the meeting at which they are to <br/>
<a id="pl.27.23"></a><var>27.23</var>be considered by the council. Nothing herein shall prevent the council from advertising <br/>
<a id="pl.27.24"></a><var>27.24</var>separately for various portions of the work involved in an improvement, or from itself, <br/>
<a id="pl.27.25"></a><var>27.25</var>supplying by such means as may be otherwise authorized by law, all or any part of the <br/>
<a id="pl.27.26"></a><var>27.26</var>materials, supplies, or equipment to be used in the improvement or from combining two or <br/>
<a id="pl.27.27"></a><var>27.27</var>more improvements in a single set of plans and specifications or a single contract.<br/>
<br/>
<a id="bill.3.14.0"></a><a id="pl.27.28"></a><var>27.28</var>    Sec. 14. Minnesota Statutes 2008, section 429.041, subdivision 2, is amended to read:<br/>
<a id="pl.27.29"></a><var>27.29</var>    Subd. 2. <b>Contracts; day labor.</b> In contracting for an improvement, the council shall <br/>
<a id="pl.27.30"></a><var>27.30</var>require the execution of one or more written contracts and bonds, conditioned as required <br/>
<a id="pl.27.31"></a><var>27.31</var>by law. The council shall award the contract to the lowest responsible bidder or it may <br/>
<a id="pl.27.32"></a><var>27.32</var>reject all bids. If any bidder to whom a contract is awarded fails to enter promptly into <br/>
<a id="pl.27.33"></a><var>27.33</var>a written contract and to furnish the required bond, the defaulting bidder shall forfeit to <br/>
<a id="pl.27.34"></a><var>27.34</var>the municipality the amount of the defaulter's cash deposit, cashier's check, bid bond, or <br/>
<a id="pl.27.35"></a><var>27.35</var>certified check, and the council may thereupon award the contract to the next lowest <br/>
<a id="pl.28.1"></a><var>28.1</var>responsible bidder. When it appears to the council that the cost of the entire work projected <br/>
<a id="pl.28.2"></a><var>28.2</var>will be less than $50,000 the amount in section 471.345, subdivision 3, or whenever no <br/>
<a id="pl.28.3"></a><var>28.3</var>bid is submitted after proper advertisement or the only bids submitted are higher than <br/>
<a id="pl.28.4"></a><var>28.4</var>the engineer's estimate, the council may advertise for new bids or, without advertising <br/>
<a id="pl.28.5"></a><var>28.5</var>for bids, directly purchase the materials for the work and do it by the employment of day <br/>
<a id="pl.28.6"></a><var>28.6</var>labor or in any other manner the council considers proper. The council may have the <br/>
<a id="pl.28.7"></a><var>28.7</var>work supervised by the city engineer or other qualified person but shall have the work <br/>
<a id="pl.28.8"></a><var>28.8</var>supervised by a registered engineer if done by day labor and it appears to the council that <br/>
<a id="pl.28.9"></a><var>28.9</var>the entire cost of all work and materials for the improvement will be more than $25,000 <br/>
<a id="pl.28.10"></a><var>28.10</var>the lowest amount in section 471.345, subdivision 4. In case of improper construction <br/>
<a id="pl.28.11"></a><var>28.11</var>or unreasonable delay in the prosecution of the work by the contractor, the council may <br/>
<a id="pl.28.12"></a><var>28.12</var>order and cause the suspension of the work at any time and relet the contract, or order <br/>
<a id="pl.28.13"></a><var>28.13</var>a reconstruction of any portion of the work improperly done, and where the cost of <br/>
<a id="pl.28.14"></a><var>28.14</var>completion or reconstruction necessary will be less than $50,000 the amount in section <br/>
<a id="pl.28.15"></a><var>28.15</var>471.345, subdivision 3, the council may do it by the employment of day labor.<br/>
<br/>
<a id="bill.3.15.0"></a><a id="pl.28.16"></a><var>28.16</var>    Sec. 15. Minnesota Statutes 2008, section 469.015, is amended to read:<br/>
<a id="pl.28.17"></a><var>28.17</var><b>469.015 LETTING OF CONTRACTS; PERFORMANCE BONDS.</b><br/>
<a id="pl.28.18"></a><var>28.18</var>    Subdivision 1. <b>Bids; notice.</b> All construction work, and work of demolition or <br/>
<a id="pl.28.19"></a><var>28.19</var>clearing, and every purchase of equipment, supplies, or materials, necessary in carrying <br/>
<a id="pl.28.20"></a><var>28.20</var>out the purposes of sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>, that involve expenditure of $50,000 the <br/>
<a id="pl.28.21"></a><var>28.21</var>amount in section 471.345, subdivision 3, or more shall be awarded by contract. Before <br/>
<a id="pl.28.22"></a><var>28.22</var>receiving bids the authority shall publish, once a week for two consecutive weeks in an <br/>
<a id="pl.28.23"></a><var>28.23</var>official newspaper of general circulation in the community a notice that bids will be <br/>
<a id="pl.28.24"></a><var>28.24</var>received for that construction work, or that purchase of equipment, supplies, or materials. <br/>
<a id="pl.28.25"></a><var>28.25</var>The notice shall state the nature of the work and the terms and conditions upon which the <br/>
<a id="pl.28.26"></a><var>28.26</var>contract is to be let, naming a time and place where bids will be received, opened and read <br/>
<a id="pl.28.27"></a><var>28.27</var>publicly, which time shall be not less than seven days after the date of the last publication. <br/>
<a id="pl.28.28"></a><var>28.28</var>After the bids have been received, opened and read publicly and recorded, the authority <br/>
<a id="pl.28.29"></a><var>28.29</var>shall award the contract to the lowest responsible bidder, provided that the authority <br/>
<a id="pl.28.30"></a><var>28.30</var>reserves the right to reject any or all bids. Each contract shall be executed in writing, and <br/>
<a id="pl.28.31"></a><var>28.31</var>the person to whom the contract is awarded shall give sufficient bond to the authority for its <br/>
<a id="pl.28.32"></a><var>28.32</var>faithful performance. If no satisfactory bid is received, the authority may readvertise. The <br/>
<a id="pl.28.33"></a><var>28.33</var>authority may establish reasonable qualifications to determine the fitness and responsibility <br/>
<a id="pl.28.34"></a><var>28.34</var>of bidders and to require bidders to meet the qualifications before bids are accepted.  <br/>
<a id="pl.29.1"></a><var>29.1</var>    Subd. 1a. <b>Best value alternative.</b> As an alternative to the procurement method <br/>
<a id="pl.29.2"></a><var>29.2</var>described in subdivision 1, the authority may issue a request for proposals and award the <br/>
<a id="pl.29.3"></a><var>29.3</var>contract to the vendor or contractor offering the best value under a request for proposals as <br/>
<a id="pl.29.4"></a><var>29.4</var>described in section 
         <statute_ref>16C.28, subdivision 1</statute_ref>, paragraph (a), clause (2), and paragraph (c).<br/>
<a id="pl.29.5"></a><var>29.5</var>    Subd. 2. <b>Exception; emergency.</b> If the authority by a vote of four-fifths of its <br/>
<a id="pl.29.6"></a><var>29.6</var>members shall declare that an emergency exists requiring the immediate purchase of any <br/>
<a id="pl.29.7"></a><var>29.7</var>equipment or material or supplies at a cost in excess of $50,000 the amount in section <br/>
<a id="pl.29.8"></a><var>29.8</var>471.345, subdivision 3, but not exceeding $75,000 half again as much as the amount in <br/>
<a id="pl.29.9"></a><var>29.9</var>section 471.345, subdivision 3, or making of emergency repairs, it shall not be necessary <br/>
<a id="pl.29.10"></a><var>29.10</var>to advertise for bids, but the material, equipment, or supplies may be purchased in the <br/>
<a id="pl.29.11"></a><var>29.11</var>open market at the lowest price obtainable, or the emergency repairs may be contracted for <br/>
<a id="pl.29.12"></a><var>29.12</var>or performed without securing formal competitive bids. An emergency, for purposes of <br/>
<a id="pl.29.13"></a><var>29.13</var>this subdivision, shall be understood to be unforeseen circumstances or conditions which <br/>
<a id="pl.29.14"></a><var>29.14</var>result in the placing in jeopardy of human life or property.<br/>
<a id="pl.29.15"></a><var>29.15</var>    Subd. 3. <b>Performance and payment bonds.</b> Performance and payment bonds shall <br/>
<a id="pl.29.16"></a><var>29.16</var>be required from contractors for any works of construction as provided in and subject <br/>
<a id="pl.29.17"></a><var>29.17</var>to all the provisions of sections 
         <statute_ref>574.26</statute_ref> to 
         <statute_ref>574.31</statute_ref> except for contracts entered into by <br/>
<a id="pl.29.18"></a><var>29.18</var>an authority for an expenditure of less than $50,000 the minimum threshold amount in <br/>
<a id="pl.29.19"></a><var>29.19</var>section 471.345, subdivision 3.  <br/>
<a id="pl.29.20"></a><var>29.20</var>    Subd. 4. <b>Exceptions.</b> (a) An authority need not require competitive bidding in the <br/>
<a id="pl.29.21"></a><var>29.21</var>following circumstances:<br/>
<a id="pl.29.22"></a><var>29.22</var>(1) in the case of a contract for the acquisition of a low-rent housing project:<br/>
<a id="pl.29.23"></a><var>29.23</var>(i) for which financial assistance is provided by the federal government;<br/>
<a id="pl.29.24"></a><var>29.24</var>(ii) which does not require any direct loan or grant of money from the municipality <br/>
<a id="pl.29.25"></a><var>29.25</var>as a condition of the federal financial assistance; and<br/>
<a id="pl.29.26"></a><var>29.26</var>(iii) for which the contract provides for the construction of the project upon land that <br/>
<a id="pl.29.27"></a><var>29.27</var>is either owned by the authority for redevelopment purposes or not owned by the authority <br/>
<a id="pl.29.28"></a><var>29.28</var>at the time of the contract but the contract provides for the conveyance or lease to the <br/>
<a id="pl.29.29"></a><var>29.29</var>authority of the project or improvements upon completion of construction;<br/>
<a id="pl.29.30"></a><var>29.30</var>(2) with respect to a structured parking facility:<br/>
<a id="pl.29.31"></a><var>29.31</var>(i) constructed in conjunction with, and directly above or below, a development; and<br/>
<a id="pl.29.32"></a><var>29.32</var>(ii) financed with the proceeds of tax increment or parking ramp general obligation <br/>
<a id="pl.29.33"></a><var>29.33</var>or revenue bonds;<br/>
<a id="pl.29.34"></a><var>29.34</var>(3) until August 1, 2009, with respect to a facility built for the purpose of facilitating <br/>
<a id="pl.29.35"></a><var>29.35</var>the operation of public transit or encouraging its use:<br/>
<a id="pl.29.36"></a><var>29.36</var>(i) constructed in conjunction with, and directly above or below, a development; and<br/>
<a id="pl.30.1"></a><var>30.1</var>(ii) financed with the proceeds of parking ramp general obligation or revenue bonds <br/>
<a id="pl.30.2"></a><var>30.2</var>or with at least 60 percent of the construction cost being financed with funding provided <br/>
<a id="pl.30.3"></a><var>30.3</var>by the federal government; and<br/>
<a id="pl.30.4"></a><var>30.4</var>(4) in the case of any building in which at least 75 percent of the usable square <br/>
<a id="pl.30.5"></a><var>30.5</var>footage constitutes a housing development project if:<br/>
<a id="pl.30.6"></a><var>30.6</var>(i) the project is financed with the proceeds of bonds issued under section 
         <statute_ref>469.034</statute_ref> or <br/>
<a id="pl.30.7"></a><var>30.7</var>from nongovernmental sources;<br/>
<a id="pl.30.8"></a><var>30.8</var>(ii) the project is either located on land that is owned or is being acquired by the <br/>
<a id="pl.30.9"></a><var>30.9</var>authority only for development purposes, or is not owned by the authority at the time the <br/>
<a id="pl.30.10"></a><var>30.10</var>contract is entered into but the contract provides for conveyance or lease to the authority <br/>
<a id="pl.30.11"></a><var>30.11</var>of the project or improvements upon completion of construction; and<br/>
<a id="pl.30.12"></a><var>30.12</var>(iii) the authority finds and determines that elimination of the public bidding <br/>
<a id="pl.30.13"></a><var>30.13</var>requirements is necessary in order for the housing development project to be economical <br/>
<a id="pl.30.14"></a><var>30.14</var>and feasible.<br/>
<a id="pl.30.15"></a><var>30.15</var>(b) An authority need not require a performance bond for the following projects:<br/>
<a id="pl.30.16"></a><var>30.16</var>(1) a contract described in paragraph (a), clause (1);<br/>
<a id="pl.30.17"></a><var>30.17</var>(2) a construction change order for a housing project in which 30 percent of the <br/>
<a id="pl.30.18"></a><var>30.18</var>construction has been completed;<br/>
<a id="pl.30.19"></a><var>30.19</var>(3) a construction contract for a single-family housing project in which the authority <br/>
<a id="pl.30.20"></a><var>30.20</var>acts as the general construction contractor; or<br/>
<a id="pl.30.21"></a><var>30.21</var>(4) a services or materials contract for a housing project.<br/>
<a id="pl.30.22"></a><var>30.22</var>For purposes of this paragraph, "services or materials contract" does not include <br/>
<a id="pl.30.23"></a><var>30.23</var>construction contracts.<br/>
<a id="pl.30.24"></a><var>30.24</var>    Subd. 5. <b>Security in lieu of bond.</b> The authority may accept a certified check or <br/>
<a id="pl.30.25"></a><var>30.25</var>cashier's check in the same amount as required for a bond in lieu of a performance bond <br/>
<a id="pl.30.26"></a><var>30.26</var>for contracts entered into by an authority for an expenditure of less than $50,000 the <br/>
<a id="pl.30.27"></a><var>30.27</var>minimum threshold amount in section 471.345, subdivision 3. The check must be held by <br/>
<a id="pl.30.28"></a><var>30.28</var>the authority for 90 days after the contract has been completed. If no suit is brought within <br/>
<a id="pl.30.29"></a><var>30.29</var>the 90 days, the authority must return the amount of the check to the person making it. If a <br/>
<a id="pl.30.30"></a><var>30.30</var>suit is brought within the 90-day period, the authority must disburse the amount of the <br/>
<a id="pl.30.31"></a><var>30.31</var>check pursuant to the order of the court.<br/>
<br/>
<a id="bill.3.16.0"></a><a id="pl.30.32"></a><var>30.32</var>    Sec. 16. Minnesota Statutes 2008, section 641.12, subdivision 1, is amended to read:<br/>
<a id="pl.30.33"></a><var>30.33</var>    Subdivision 1. <b>Fee.</b> A county board may require that each person who is booked for <br/>
<a id="pl.30.34"></a><var>30.34</var>confinement at a county or regional jail, and not released upon completion of the booking <br/>
<a id="pl.30.35"></a><var>30.35</var>process, pay a fee of up to $10 to the sheriff's department of the county in which the jail <br/>
<a id="pl.31.1"></a><var>31.1</var>is located to cover costs incurred by the county in the booking of that person. The fee <br/>
<a id="pl.31.2"></a><var>31.2</var>is payable immediately from any money then possessed by the person being booked, or <br/>
<a id="pl.31.3"></a><var>31.3</var>any money deposited with the sheriff's department on the person's behalf. If the person <br/>
<a id="pl.31.4"></a><var>31.4</var>has no funds at the time of booking or during the period of any incarceration, the sheriff <br/>
<a id="pl.31.5"></a><var>31.5</var>shall notify the district court in the county where the charges related to the booking are <br/>
<a id="pl.31.6"></a><var>31.6</var>pending, and shall request the assessment of the fee. Notwithstanding section 
         <statute_ref>609.10</statute_ref> or <br/>
<statute_ref><a id="pl.31.7"></a><var>31.7</var>609.125
         </statute_ref>, upon notification from the sheriff, the district court must order the fee paid to the <br/>
<a id="pl.31.8"></a><var>31.8</var>sheriff's department as part of any sentence or disposition imposed. If the person is not <br/>
<a id="pl.31.9"></a><var>31.9</var>charged, is acquitted, or if the charges are dismissed, the sheriff shall return the fee to the <br/>
<a id="pl.31.10"></a><var>31.10</var>person at the last known address listed in the booking records.  <br/>
<br/>
<a id="bill.3.17.0"></a><a id="pl.31.11"></a><var>31.11</var>    Sec. 17. <b>FIRST MEETING AFTER EFFECTIVE DATE OF ACT.</b><br/>
<a id="pl.31.12"></a><var>31.12</var>The first meeting of the Legislative Commission on Mandate Reform must be held <br/>
<a id="pl.31.13"></a><var>31.13</var>as soon as practicable after all appointments are made. The speaker of the house must <br/>
<a id="pl.31.14"></a><var>31.14</var>designate a commission member to convene the first meeting. The first commission serves <br/>
<a id="pl.31.15"></a><var>31.15</var>until a new commission is appointed at the beginning of the next biennium.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.31.18"></a><var>31.18</var>    Section 1. Minnesota Statutes 2008, section 123B.10, subdivision 1, is amended to read:<br/>
<a id="pl.31.19"></a><var>31.19</var>    Subdivision 1. <b>Budgets; form of notification.</b> (a) Every board must publish revenue <br/>
<a id="pl.31.20"></a><var>31.20</var>and expenditure budgets for the current year and the actual revenues, expenditures, fund <br/>
<a id="pl.31.21"></a><var>31.21</var>balances for the prior year and projected fund balances for the current year in a form <br/>
<a id="pl.31.22"></a><var>31.22</var>prescribed by the commissioner within one week of the acceptance of the final audit by <br/>
<a id="pl.31.23"></a><var>31.23</var>the board, or November 30, whichever is earlier. The forms prescribed must be designed <br/>
<a id="pl.31.24"></a><var>31.24</var>so that year to year comparisons of revenue, expenditures and fund balances can be made. <br/>
<a id="pl.31.25"></a><var>31.25</var>    (b) A school board annually must notify the public of its revenue, expenditures, fund <br/>
<a id="pl.31.26"></a><var>31.26</var>balances, and other relevant budget information. The board must include the budget <br/>
<a id="pl.31.27"></a><var>31.27</var>information required by this section in the materials provided as a part of its truth in <br/>
<a id="pl.31.28"></a><var>31.28</var>taxation hearing, post the materials in a conspicuous place on the district's official Web <br/>
<a id="pl.31.29"></a><var>31.29</var>site, including a link to the district's school report card on the Department of Education's <br/>
<a id="pl.31.30"></a><var>31.30</var>Web site, and publish the information in a qualified newspaper of general circulation <br/>
<a id="pl.31.31"></a><var>31.31</var>in the district.<br/>
<a id="pl.31.32"></a><var>31.32</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.31.33"></a><var>31.33</var>thereafter.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.32.1"></a><var>32.1</var>    Sec. 2. Minnesota Statutes 2008, section 275.065, subdivision 1, is amended to read:<br/>
<a id="pl.32.2"></a><var>32.2</var>    Subdivision 1. <b>Proposed levy.</b> (a) Notwithstanding any law or charter to the <br/>
<a id="pl.32.3"></a><var>32.3</var>contrary, on or before September 15 5, each taxing authority, other than a school district, <br/>
<a id="pl.32.4"></a><var>32.4</var>shall adopt a proposed budget and shall certify to the county auditor the proposed or, in <br/>
<a id="pl.32.5"></a><var>32.5</var>the case of a town, the final property tax levy for taxes payable in the following year.<br/>
<a id="pl.32.6"></a><var>32.6</var>    (b) On or before September 30 20, each school district that has not mutually agreed <br/>
<a id="pl.32.7"></a><var>32.7</var>with its home county to extend this date shall certify to the county auditor the proposed <br/>
<a id="pl.32.8"></a><var>32.8</var>property tax levy for taxes payable in the following year. Each school district that has <br/>
<a id="pl.32.9"></a><var>32.9</var>agreed with its home county to delay the certification of its proposed property tax levy <br/>
<a id="pl.32.10"></a><var>32.10</var>must certify its proposed property tax levy for the following year no later than October 7 <br/>
<a id="pl.32.11"></a><var>32.11</var>September 28. The school district shall certify the proposed levy as:<br/>
<a id="pl.32.12"></a><var>32.12</var>    (1) a specific dollar amount by school district fund, broken down between <br/>
<a id="pl.32.13"></a><var>32.13</var>voter-approved and non-voter-approved levies and between referendum market value <br/>
<a id="pl.32.14"></a><var>32.14</var>and tax capacity levies; or<br/>
<a id="pl.32.15"></a><var>32.15</var>    (2) the maximum levy limitation certified by the commissioner of education <br/>
<a id="pl.32.16"></a><var>32.16</var>according to section 
         <statute_ref>126C.48, subdivision 1</statute_ref>.<br/>
<a id="pl.32.17"></a><var>32.17</var>    (c) If the board of estimate and taxation or any similar board that establishes <br/>
<a id="pl.32.18"></a><var>32.18</var>maximum tax levies for taxing jurisdictions within a first class city certifies the maximum <br/>
<a id="pl.32.19"></a><var>32.19</var>property tax levies for funds under its jurisdiction by charter to the county auditor by <br/>
<a id="pl.32.20"></a><var>32.20</var>September 15 1, the city shall be deemed to have certified its levies for those taxing <br/>
<a id="pl.32.21"></a><var>32.21</var>jurisdictions.<br/>
<a id="pl.32.22"></a><var>32.22</var>    (d) For purposes of this section, "taxing authority" includes all home rule and <br/>
<a id="pl.32.23"></a><var>32.23</var>statutory cities, towns, counties, school districts, and special taxing districts as defined <br/>
<a id="pl.32.24"></a><var>32.24</var>in section 
         <statute_ref>275.066</statute_ref>. Intermediate school districts that levy a tax under chapter 124 or <br/>
<a id="pl.32.25"></a><var>32.25</var>136D, joint powers boards established under sections 
         <statute_ref>123A.44</statute_ref> to 
         <statute_ref>123A.446</statute_ref>, and Common <br/>
<a id="pl.32.26"></a><var>32.26</var>School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing <br/>
<a id="pl.32.27"></a><var>32.27</var>districts for purposes of this section.<br/>
<a id="pl.32.28"></a><var>32.28</var>(e) At the meeting where the taxing authority adopts its proposed tax levy under <br/>
<a id="pl.32.29"></a><var>32.29</var>paragraph (a) or (b), the taxing authority shall announce the time and place of its <br/>
<a id="pl.32.30"></a><var>32.30</var>subsequent regularly scheduled meetings at which the budget levy will be discussed and at <br/>
<a id="pl.32.31"></a><var>32.31</var>which the public will be allowed to speak. The time and place of those meetings must <br/>
<a id="pl.32.32"></a><var>32.32</var>be included in the proceedings or summary of the proceedings published in the official <br/>
<a id="pl.32.33"></a><var>32.33</var>newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.<br/>
<a id="pl.32.34"></a><var>32.34</var><b>EFFECTIVE DATE.</b>This section is effective for proposed notices prepared in 2010 <br/>
<a id="pl.32.35"></a><var>32.35</var>and thereafter, for property taxes payable in 2011 and thereafter, except that paragraph <br/>
<a id="pl.32.36"></a><var>32.36</var>(e) is effective for taxes payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.33.1"></a><var>33.1</var>    Sec. 3. Minnesota Statutes 2008, section 275.065, subdivision 1a, is amended to read:<br/>
<a id="pl.33.2"></a><var>33.2</var>    Subd. 1a. <b>Overlapping jurisdictions.</b> In the case of a taxing authority lying in two <br/>
<a id="pl.33.3"></a><var>33.3</var>or more counties, the home county auditor shall certify the proposed levy and the proposed <br/>
<a id="pl.33.4"></a><var>33.4</var>local tax rate to the other county auditor by October 5 September 20, unless the home <br/>
<a id="pl.33.5"></a><var>33.5</var>county has agreed to delay the certification of its proposed property tax levy, in which case <br/>
<a id="pl.33.6"></a><var>33.6</var>the home county auditor shall certify the proposed levy and the proposed local tax rate <br/>
<a id="pl.33.7"></a><var>33.7</var>to the other county auditor by October 10 September 25. The home county auditor must <br/>
<a id="pl.33.8"></a><var>33.8</var>estimate the levy or rate in preparing the notices required in subdivision 3, if the other <br/>
<a id="pl.33.9"></a><var>33.9</var>county has not certified the appropriate information. If requested by the home county <br/>
<a id="pl.33.10"></a><var>33.10</var>auditor, the other county auditor must furnish an estimate to the home county auditor.<br/>
<a id="pl.33.11"></a><var>33.11</var><b>EFFECTIVE DATE.</b>This section is effective for proposed notices prepared in <br/>
<a id="pl.33.12"></a><var>33.12</var>2010 and thereafter, for property taxes payable in 2011 and thereafter.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.33.13"></a><var>33.13</var>    Sec. 4. Minnesota Statutes 2008, section 275.065, subdivision 1c, is amended to read:<br/>
<a id="pl.33.14"></a><var>33.14</var>    Subd. 1c. <b>Levy; shared, merged, consolidated services.</b> If two or more taxing <br/>
<a id="pl.33.15"></a><var>33.15</var>authorities are in the process of negotiating an agreement for sharing, merging, or <br/>
<a id="pl.33.16"></a><var>33.16</var>consolidating services between those taxing authorities at the time the proposed levy is to <br/>
<a id="pl.33.17"></a><var>33.17</var>be certified under subdivision 1, each taxing authority involved in the negotiation shall <br/>
<a id="pl.33.18"></a><var>33.18</var>certify its total proposed levy as provided in that subdivision, including a notification to the <br/>
<a id="pl.33.19"></a><var>33.19</var>county auditor of the specific service involved in the agreement which is not yet finalized. <br/>
<a id="pl.33.20"></a><var>33.20</var>The affected taxing authorities may amend their proposed levies under subdivision 1 until <br/>
<a id="pl.33.21"></a><var>33.21</var>October 10 September 25 for levy amounts relating only to the specific service involved.<br/>
<a id="pl.33.22"></a><var>33.22</var><b>EFFECTIVE DATE.</b>This section is effective for proposed notices prepared in <br/>
<a id="pl.33.23"></a><var>33.23</var>2010 and thereafter, for property taxes payable in 2011 and thereafter.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.33.24"></a><var>33.24</var>    Sec. 5. Minnesota Statutes 2008, section 275.065, subdivision 3, is amended to read:<br/>
<a id="pl.33.25"></a><var>33.25</var>    Subd. 3. <b>Notice of proposed property taxes.</b> (a) The county auditor shall prepare <br/>
<a id="pl.33.26"></a><var>33.26</var>and the county treasurer shall deliver after November 10 October 15 and on or before <br/>
<a id="pl.33.27"></a><var>33.27</var>November October 24 each year, by first class mail to each taxpayer at the address listed <br/>
<a id="pl.33.28"></a><var>33.28</var>on the county's current year's assessment roll, a notice of proposed property taxes. Upon <br/>
<a id="pl.33.29"></a><var>33.29</var>written request by the taxpayer, the treasurer may send the notice in electronic form or by <br/>
<a id="pl.33.30"></a><var>33.30</var>electronic mail instead of on paper or by ordinary mail.<br/>
<a id="pl.33.31"></a><var>33.31</var>    (b) The commissioner of revenue shall prescribe the form of the notice.<br/>
<a id="pl.33.32"></a><var>33.32</var>    (c) The notice must inform taxpayers that it contains the amount of property taxes <br/>
<a id="pl.33.33"></a><var>33.33</var>each taxing authority proposes to collect for taxes payable the following year. In the <br/>
<a id="pl.34.1"></a><var>34.1</var>case of a town, or in the case of the state general tax, the final tax amount will be its <br/>
<a id="pl.34.2"></a><var>34.2</var>proposed tax. In the case of taxing authorities required to hold a public meeting under <br/>
<a id="pl.34.3"></a><var>34.3</var>subdivision 6, the notice must clearly state that each taxing authority, including regional <br/>
<a id="pl.34.4"></a><var>34.4</var>library districts established under section 
<statute_ref>134.201</statute_ref>, and including the metropolitan taxing <br/>
<a id="pl.34.5"></a><var>34.5</var>districts as defined in paragraph (i), but excluding all other special taxing districts and <br/>
<a id="pl.34.6"></a><var>34.6</var>towns, will hold a public meeting to receive public testimony on the proposed budget and <br/>
<a id="pl.34.7"></a><var>34.7</var>proposed or final property tax levy, or, in case of a school district, on the current budget <br/>
<a id="pl.34.8"></a><var>34.8</var>and proposed property tax levy. The notice must clearly state for each city, county, school <br/>
<a id="pl.34.9"></a><var>34.9</var>district, regional library authority established under section 134.201, and metropolitan <br/>
<a id="pl.34.10"></a><var>34.10</var>taxing districts as defined in paragraph (i), the time and place of the taxing authorities <br/>
<a id="pl.34.11"></a><var>34.11</var>regularly scheduled meetings occurring after October 24 at which the budget and levy will <br/>
<a id="pl.34.12"></a><var>34.12</var>be discussed. The taxing authorities must provide the county auditor with the information <br/>
<a id="pl.34.13"></a><var>34.13</var>to be included in the notice on or before the time it certifies its proposed levy under <br/>
<a id="pl.34.14"></a><var>34.14</var>subdivision 1. The public shall be allowed to speak at that meeting. It must clearly state <br/>
<a id="pl.34.15"></a><var>34.15</var>the time and place of each taxing authority's meeting, provide a telephone number for the <br/>
<a id="pl.34.16"></a><var>34.16</var>taxing authority that taxpayers may call if they have questions related to the notice, and an <br/>
<a id="pl.34.17"></a><var>34.17</var>address where comments will be received by mail.<br/>
<a id="pl.34.18"></a><var>34.18</var>    (d) The notice must state for each parcel:<br/>
<a id="pl.34.19"></a><var>34.19</var>    (1) the market value of the property as determined under section 
         <statute_ref>273.11</statute_ref>, and used <br/>
<a id="pl.34.20"></a><var>34.20</var>for computing property taxes payable in the following year and for taxes payable in the <br/>
<a id="pl.34.21"></a><var>34.21</var>current year as each appears in the records of the county assessor on November October <br/>
<a id="pl.34.22"></a><var>34.22</var>1 of the current year; and, in the case of residential property, whether the property is <br/>
<a id="pl.34.23"></a><var>34.23</var>classified as homestead or nonhomestead. The notice must clearly inform taxpayers of the <br/>
<a id="pl.34.24"></a><var>34.24</var>years to which the market values apply and that the values are final values;<br/>
<a id="pl.34.25"></a><var>34.25</var>    (2) the items listed below, shown separately by county, city or town, and state general <br/>
<a id="pl.34.26"></a><var>34.26</var>tax, net of the residential and agricultural homestead credit under section 
         <statute_ref>273.1384</statute_ref>, voter <br/>
<a id="pl.34.27"></a><var>34.27</var>approved school levy, other local school levy, and the sum of the special taxing districts, <br/>
<a id="pl.34.28"></a><var>34.28</var>and as a total of all taxing authorities:<br/>
<a id="pl.34.29"></a><var>34.29</var>    (i) the actual tax for taxes payable in the current year; and<br/>
<a id="pl.34.30"></a><var>34.30</var>    (ii) the proposed tax amount.<br/>
<a id="pl.34.31"></a><var>34.31</var>    If the county levy under clause (2) includes an amount for a lake improvement <br/>
<a id="pl.34.32"></a><var>34.32</var>district as defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that <br/>
<a id="pl.34.33"></a><var>34.33</var>purpose must be separately stated from the remaining county levy amount.<br/>
<a id="pl.34.34"></a><var>34.34</var>    In the case of a town or the state general tax, the final tax shall also be its proposed <br/>
<a id="pl.34.35"></a><var>34.35</var>tax unless the town changes its levy at a special town meeting under section 
         <statute_ref>365.52</statute_ref>. If a <br/>
<a id="pl.34.36"></a><var>34.36</var>school district has certified under section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, that a referendum will <br/>
<a id="pl.35.1"></a><var>35.1</var>be held in the school district at the November general election, the county auditor must <br/>
<a id="pl.35.2"></a><var>35.2</var>note next to the school district's proposed amount that a referendum is pending and that, if <br/>
<a id="pl.35.3"></a><var>35.3</var>approved by the voters, the tax amount may be higher than shown on the notice. In the <br/>
<a id="pl.35.4"></a><var>35.4</var>case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be <br/>
<a id="pl.35.5"></a><var>35.5</var>listed separately from the remaining amount of the city's levy. In the case of the city of <br/>
<a id="pl.35.6"></a><var>35.6</var>St. Paul, the levy for the St. Paul Library Agency must be listed separately from the <br/>
<a id="pl.35.7"></a><var>35.7</var>remaining amount of the city's levy. In the case of Ramsey County, any amount levied <br/>
<a id="pl.35.8"></a><var>35.8</var>under section 
         <statute_ref>134.07</statute_ref> may be listed separately from the remaining amount of the county's <br/>
<a id="pl.35.9"></a><var>35.9</var>levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax <br/>
<a id="pl.35.10"></a><var>35.10</var>under chapter 276A or 473F applies, the proposed tax levy on the captured value or the <br/>
<a id="pl.35.11"></a><var>35.11</var>proposed tax levy on the tax capacity subject to the areawide tax must each be stated <br/>
<a id="pl.35.12"></a><var>35.12</var>separately and not included in the sum of the special taxing districts; and<br/>
<a id="pl.35.13"></a><var>35.13</var>    (3) the increase or decrease between the total taxes payable in the current year and <br/>
<a id="pl.35.14"></a><var>35.14</var>the total proposed taxes, expressed as a percentage.<br/>
<a id="pl.35.15"></a><var>35.15</var>    For purposes of this section, the amount of the tax on homesteads qualifying under <br/>
<a id="pl.35.16"></a><var>35.16</var>the senior citizens' property tax deferral program under chapter 290B is the total amount <br/>
<a id="pl.35.17"></a><var>35.17</var>of property tax before subtraction of the deferred property tax amount.<br/>
<a id="pl.35.18"></a><var>35.18</var>    (e) The notice must clearly state that the proposed or final taxes do not include <br/>
<a id="pl.35.19"></a><var>35.19</var>the following:<br/>
<a id="pl.35.20"></a><var>35.20</var>    (1) special assessments;<br/>
<a id="pl.35.21"></a><var>35.21</var>    (2) levies approved by the voters after the date the proposed taxes are certified, <br/>
<a id="pl.35.22"></a><var>35.22</var>including bond referenda and school district levy referenda;<br/>
<a id="pl.35.23"></a><var>35.23</var>    (3) a levy limit increase approved by the voters by the first Tuesday after the first <br/>
<a id="pl.35.24"></a><var>35.24</var>Monday in November of the levy year as provided under section 
         <statute_ref>275.73</statute_ref>;<br/>
<a id="pl.35.25"></a><var>35.25</var>    (4) amounts necessary to pay cleanup or other costs due to a natural disaster <br/>
<a id="pl.35.26"></a><var>35.26</var>occurring after the date the proposed taxes are certified;<br/>
<a id="pl.35.27"></a><var>35.27</var>    (5) amounts necessary to pay tort judgments against the taxing authority that become <br/>
<a id="pl.35.28"></a><var>35.28</var>final after the date the proposed taxes are certified; and<br/>
<a id="pl.35.29"></a><var>35.29</var>    (6) the contamination tax imposed on properties which received market value <br/>
<a id="pl.35.30"></a><var>35.30</var>reductions for contamination.<br/>
<a id="pl.35.31"></a><var>35.31</var>    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or <br/>
<a id="pl.35.32"></a><var>35.32</var>the county treasurer to deliver the notice as required in this section does not invalidate the <br/>
<a id="pl.35.33"></a><var>35.33</var>proposed or final tax levy or the taxes payable pursuant to the tax levy.<br/>
<a id="pl.35.34"></a><var>35.34</var>    (g) If the notice the taxpayer receives under this section lists the property as <br/>
<a id="pl.35.35"></a><var>35.35</var>nonhomestead, and satisfactory documentation is provided to the county assessor by the <br/>
<a id="pl.35.36"></a><var>35.36</var>applicable deadline, and the property qualifies for the homestead classification in that <br/>
<a id="pl.36.1"></a><var>36.1</var>assessment year, the assessor shall reclassify the property to homestead for taxes payable <br/>
<a id="pl.36.2"></a><var>36.2</var>in the following year.<br/>
<a id="pl.36.3"></a><var>36.3</var>    (h) In the case of class 4 residential property used as a residence for lease or rental <br/>
<a id="pl.36.4"></a><var>36.4</var>periods of 30 days or more, the taxpayer must either:<br/>
<a id="pl.36.5"></a><var>36.5</var>    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, <br/>
<a id="pl.36.6"></a><var>36.6</var>renter, or lessee; or<br/>
<a id="pl.36.7"></a><var>36.7</var>    (2) post a copy of the notice in a conspicuous place on the premises of the property.<br/>
<a id="pl.36.8"></a><var>36.8</var>    The notice must be mailed or posted by the taxpayer by November October 27 or <br/>
<a id="pl.36.9"></a><var>36.9</var>within three days of receipt of the notice, whichever is later. A taxpayer may notify the <br/>
<a id="pl.36.10"></a><var>36.10</var>county treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises <br/>
<a id="pl.36.11"></a><var>36.11</var>to which the notice must be mailed in order to fulfill the requirements of this paragraph.<br/>
<a id="pl.36.12"></a><var>36.12</var>    (i) For purposes of this subdivision, subdivisions and subdivision 5a and 6, <br/>
<a id="pl.36.13"></a><var>36.13</var>"metropolitan special taxing districts" means the following taxing districts in the <br/>
<a id="pl.36.14"></a><var>36.14</var>seven-county metropolitan area that levy a property tax for any of the specified purposes <br/>
<a id="pl.36.15"></a><var>36.15</var>listed below:<br/>
<a id="pl.36.16"></a><var>36.16</var>    (1) Metropolitan Council under section 
         <statute_ref>473.132</statute_ref>, 
         <statute_ref>473.167</statute_ref>, 
         <statute_ref>473.249</statute_ref>, 
         <statute_ref>473.325</statute_ref>, <br/>
<statute_ref><a id="pl.36.17"></a><var>36.17</var>473.446
         </statute_ref>, 
         <statute_ref>473.521</statute_ref>, 
         <statute_ref>473.547</statute_ref>, or 
         <statute_ref>473.834</statute_ref>;<br/>
<a id="pl.36.18"></a><var>36.18</var>    (2) Metropolitan Airports Commission under section 
         <statute_ref>473.667</statute_ref>, 
         <statute_ref>473.671</statute_ref>, or 
         <statute_ref>473.672</statute_ref>; <br/>
<a id="pl.36.19"></a><var>36.19</var>and <br/>
<a id="pl.36.20"></a><var>36.20</var>    (3) Metropolitan Mosquito Control Commission under section 
         <statute_ref>473.711</statute_ref>.<br/>
<a id="pl.36.21"></a><var>36.21</var>    For purposes of this section, any levies made by the regional rail authorities in the <br/>
<a id="pl.36.22"></a><var>36.22</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter <br/>
<a id="pl.36.23"></a><var>36.23</var>398A shall be included with the appropriate county's levy and shall be discussed at that <br/>
<a id="pl.36.24"></a><var>36.24</var>county's public hearing.<br/>
<a id="pl.36.25"></a><var>36.25</var>    (j) The governing body of a county, city, or school district may, with the consent <br/>
<a id="pl.36.26"></a><var>36.26</var>of the county board, include supplemental information with the statement of proposed <br/>
<a id="pl.36.27"></a><var>36.27</var>property taxes about the impact of state aid increases or decreases on property tax <br/>
<a id="pl.36.28"></a><var>36.28</var>increases or decreases and on the level of services provided in the affected jurisdiction. <br/>
<a id="pl.36.29"></a><var>36.29</var>This supplemental information may include information for the following year, the current <br/>
<a id="pl.36.30"></a><var>36.30</var>year, and for as many consecutive preceding years as deemed appropriate by the governing <br/>
<a id="pl.36.31"></a><var>36.31</var>body of the county, city, or school district. It may include only information regarding:<br/>
<a id="pl.36.32"></a><var>36.32</var>    (1) the impact of inflation as measured by the implicit price deflator for state and <br/>
<a id="pl.36.33"></a><var>36.33</var>local government purchases;<br/>
<a id="pl.36.34"></a><var>36.34</var>    (2) population growth and decline;<br/>
<a id="pl.36.35"></a><var>36.35</var>    (3) state or federal government action; and<br/>
<a id="pl.37.1"></a><var>37.1</var>    (4) other financial factors that affect the level of property taxation and local services <br/>
<a id="pl.37.2"></a><var>37.2</var>that the governing body of the county, city, or school district may deem appropriate to <br/>
<a id="pl.37.3"></a><var>37.3</var>include.<br/>
<a id="pl.37.4"></a><var>37.4</var>    The information may be presented using tables, written narrative, and graphic <br/>
<a id="pl.37.5"></a><var>37.5</var>representations and may contain instruction toward further sources of information or <br/>
<a id="pl.37.6"></a><var>37.6</var>opportunity for comment.<br/>
<a id="pl.37.7"></a><var>37.7</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.37.8"></a><var>37.8</var>thereafter, except that the changes advancing the dates for preparing and mailing the <br/>
<a id="pl.37.9"></a><var>37.9</var>notices are effective for proposed notices in 2010, for taxes payable in 2011 and thereafter.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.37.10"></a><var>37.10</var>    Sec. 6. Minnesota Statutes 2008, section 275.065, subdivision 6, is amended to read:<br/>
<a id="pl.37.11"></a><var>37.11</var>    Subd. 6. <b>Public hearing;</b><b> Adoption of budget and levy.</b> (a) For purposes of this <br/>
<a id="pl.37.12"></a><var>37.12</var>section, the following terms shall have the meanings given:<br/>
<a id="pl.37.13"></a><var>37.13</var>(1) "Initial hearing" means the first and primary hearing held to discuss the taxing <br/>
<a id="pl.37.14"></a><var>37.14</var>authority's proposed budget and proposed property tax levy for taxes payable in the <br/>
<a id="pl.37.15"></a><var>37.15</var>following year, or, for school districts, the current budget and the proposed property tax <br/>
<a id="pl.37.16"></a><var>37.16</var>levy for taxes payable in the following year.<br/>
<a id="pl.37.17"></a><var>37.17</var>(2) "Continuation hearing" means a hearing held to complete the initial hearing, if <br/>
<a id="pl.37.18"></a><var>37.18</var>the initial hearing is not completed on its scheduled date.<br/>
<a id="pl.37.19"></a><var>37.19</var>(3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final <br/>
<a id="pl.37.20"></a><var>37.20</var>property tax levy, and, in the case of taxing authorities other than school districts, the final <br/>
<a id="pl.37.21"></a><var>37.21</var>budget, for taxes payable in the following year.<br/>
<a id="pl.37.22"></a><var>37.22</var>(b) Between November 29 and December 20, the governing bodies of a city that has a <br/>
<a id="pl.37.23"></a><var>37.23</var>population over 500, county, metropolitan special taxing districts as defined in subdivision <br/>
<a id="pl.37.24"></a><var>37.24</var>3, paragraph (i), and regional library districts shall each hold an initial public hearing <br/>
<a id="pl.37.25"></a><var>37.25</var>to discuss and seek public comment on its final budget and property tax levy for taxes <br/>
<a id="pl.37.26"></a><var>37.26</var>payable in the following year, and the governing body of the school district shall hold an <br/>
<a id="pl.37.27"></a><var>37.27</var>initial public hearing to review its current budget and proposed property tax levy for taxes <br/>
<a id="pl.37.28"></a><var>37.28</var>payable in the following year. The metropolitan special taxing districts shall be required to <br/>
<a id="pl.37.29"></a><var>37.29</var>hold only a single joint initial public hearing, the location of which will be determined by <br/>
<a id="pl.37.30"></a><var>37.30</var>the affected metropolitan agencies. A city, county, metropolitan special taxing district as <br/>
<a id="pl.37.31"></a><var>37.31</var>defined in subdivision 3, paragraph (i), regional library district established under section <br/>
<a id="pl.37.32"></a><var>37.32</var><statute_ref>134.201</statute_ref>, or school district is not required to hold a public hearing under this subdivision <br/>
<a id="pl.37.33"></a><var>37.33</var>unless its proposed property tax levy for taxes payable in the following year, as certified <br/>
<a id="pl.37.34"></a><var>37.34</var>under subdivision 1, has increased over its final property tax levy for taxes payable in the <br/>
<a id="pl.37.35"></a><var>37.35</var>current year by a percentage that is greater than the percentage increase in the implicit <br/>
<a id="pl.38.1"></a><var>38.1</var>price deflator for government consumption expenditures and gross investment for state <br/>
<a id="pl.38.2"></a><var>38.2</var>and local governments prepared by the Bureau of Economic Analysts of the United States <br/>
<a id="pl.38.3"></a><var>38.3</var>Department of Commerce for the 12-month period ending March 31 of the current year.<br/>
<a id="pl.38.4"></a><var>38.4</var>(c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than <br/>
<a id="pl.38.5"></a><var>38.5</var>Saturday. No initial hearing may be held on a Sunday.<br/>
<a id="pl.38.6"></a><var>38.6</var>(d) At the initial hearing under this subdivision, the percentage increase in property <br/>
<a id="pl.38.7"></a><var>38.7</var>taxes proposed by the taxing authority, if any, and the specific purposes for which property <br/>
<a id="pl.38.8"></a><var>38.8</var>tax revenues are being increased must be discussed. During the discussion, the governing <br/>
<a id="pl.38.9"></a><var>38.9</var>body shall hear comments regarding a proposed increase and explain the reasons for the <br/>
<a id="pl.38.10"></a><var>38.10</var>proposed increase. The public shall be allowed to speak and to ask questions. At the public <br/>
<a id="pl.38.11"></a><var>38.11</var>hearing, the school district must also provide and discuss information on the distribution <br/>
<a id="pl.38.12"></a><var>38.12</var>of its revenues by revenue source, and the distribution of its spending by program area.<br/>
<a id="pl.38.13"></a><var>38.13</var>(e) If the initial hearing is not completed on its scheduled date, the taxing authority <br/>
<a id="pl.38.14"></a><var>38.14</var>must announce, prior to adjournment of the hearing, the date, time, and place for the <br/>
<a id="pl.38.15"></a><var>38.15</var>continuation of the hearing. The continuation hearing must be held at least five business <br/>
<a id="pl.38.16"></a><var>38.16</var>days but no more than 14 business days after the initial hearing. A continuation hearing <br/>
<a id="pl.38.17"></a><var>38.17</var>may not be held later than December 20 except as provided in paragraphs (f) and (g). <br/>
<a id="pl.38.18"></a><var>38.18</var>A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than <br/>
<a id="pl.38.19"></a><var>38.19</var>Saturday. No continuation hearing may be held on a Sunday.<br/>
<a id="pl.38.20"></a><var>38.20</var>(f) The governing body of a county shall hold its initial hearing on the first Thursday <br/>
<a id="pl.38.21"></a><var>38.21</var>in December each year, and may hold additional initial hearings on other dates before <br/>
<a id="pl.38.22"></a><var>38.22</var>December 20 if necessary for the convenience of county residents. If the county needs a <br/>
<a id="pl.38.23"></a><var>38.23</var>continuation of its hearing, the continuation hearing shall be held on the third Tuesday <br/>
<a id="pl.38.24"></a><var>38.24</var>in December. If the third Tuesday in December falls on December 21, the county's <br/>
<a id="pl.38.25"></a><var>38.25</var>continuation hearing shall be held on Monday, December 20.<br/>
<a id="pl.38.26"></a><var>38.26</var>(g) The metropolitan special taxing districts shall hold a joint initial public hearing <br/>
<a id="pl.38.27"></a><var>38.27</var>on the first Wednesday of December. A continuation hearing, if necessary, shall be held on <br/>
<a id="pl.38.28"></a><var>38.28</var>the second Wednesday of December even if that second Wednesday is after December 10.<br/>
<a id="pl.38.29"></a><var>38.29</var>(h) The county auditor shall provide for the coordination of initial and continuation <br/>
<a id="pl.38.30"></a><var>38.30</var>hearing dates for all school districts and cities within the county to prevent conflicts under <br/>
<a id="pl.38.31"></a><var>38.31</var>clauses (i) and (j).<br/>
<a id="pl.38.32"></a><var>38.32</var>(i) By August 10, each school board and the board of the regional library district <br/>
<a id="pl.38.33"></a><var>38.33</var>shall certify to the county auditors of the counties in which the school district or regional <br/>
<a id="pl.38.34"></a><var>38.34</var>library district is located the dates on which it elects to hold its initial hearing and any <br/>
<a id="pl.38.35"></a><var>38.35</var>continuation hearing. If a school board or regional library district does not certify these <br/>
<a id="pl.38.36"></a><var>38.36</var>dates by August 10, the auditor will assign the initial and continuation hearing dates. The <br/>
<a id="pl.39.1"></a><var>39.1</var>dates elected or assigned must not conflict with the initial and continuation hearing dates <br/>
<a id="pl.39.2"></a><var>39.2</var>of the county or the metropolitan special taxing districts.<br/>
<a id="pl.39.3"></a><var>39.3</var>(j) By August 20, the county auditor shall notify the clerks of the cities within the <br/>
<a id="pl.39.4"></a><var>39.4</var>county of the dates on which school districts and regional library districts have elected to <br/>
<a id="pl.39.5"></a><var>39.5</var>hold their initial and continuation hearings. At the time a city certifies its proposed levy <br/>
<a id="pl.39.6"></a><var>39.6</var>under subdivision 1 it shall certify the dates on which it elects to hold its initial hearing and <br/>
<a id="pl.39.7"></a><var>39.7</var>any continuation hearing. Until September 15, the first and second Mondays of December <br/>
<a id="pl.39.8"></a><var>39.8</var>are reserved for the use of the cities. If a city does not certify its hearing dates by <br/>
<a id="pl.39.9"></a><var>39.9</var>September 15, the auditor shall assign the initial and continuation hearing dates. The dates <br/>
<a id="pl.39.10"></a><var>39.10</var>elected or assigned for the initial hearing must not conflict with the initial hearing dates <br/>
<a id="pl.39.11"></a><var>39.11</var>of the county, metropolitan special taxing districts, regional library districts, or school <br/>
<a id="pl.39.12"></a><var>39.12</var>districts within which the city is located. To the extent possible, the dates of the city's <br/>
<a id="pl.39.13"></a><var>39.13</var>continuation hearing should not conflict with the continuation hearing dates of the county, <br/>
<a id="pl.39.14"></a><var>39.14</var>metropolitan special taxing districts, regional library districts, or school districts within <br/>
<a id="pl.39.15"></a><var>39.15</var>which the city is located. This paragraph does not apply to cities of 500 population or less.<br/>
<a id="pl.39.16"></a><var>39.16</var>(k) The county initial hearing date and the city, metropolitan special taxing district, <br/>
<a id="pl.39.17"></a><var>39.17</var>regional library district, and school district initial hearing dates must be designated on <br/>
<a id="pl.39.18"></a><var>39.18</var>the notices required under subdivision 3. The continuation hearing dates need not be <br/>
<a id="pl.39.19"></a><var>39.19</var>stated on the notices.<br/>
<a id="pl.39.20"></a><var>39.20</var>(l) At a subsequent hearing, each county, school district, city over 500 population, <br/>
<a id="pl.39.21"></a><var>39.21</var>and metropolitan special taxing district may amend its proposed property tax levy <br/>
<a id="pl.39.22"></a><var>39.22</var>and must adopt a final property tax levy. Each county, city over 500 population, and <br/>
<a id="pl.39.23"></a><var>39.23</var>metropolitan special taxing district may also amend its proposed budget and must adopt a <br/>
<a id="pl.39.24"></a><var>39.24</var>final budget at the subsequent hearing. The final property tax levy must be adopted prior <br/>
<a id="pl.39.25"></a><var>39.25</var>to adopting the final budget. A school district is not required to adopt its final budget at the <br/>
<a id="pl.39.26"></a><var>39.26</var>subsequent hearing. The subsequent hearing of a taxing authority must be held on a date <br/>
<a id="pl.39.27"></a><var>39.27</var>subsequent to the date of the taxing authority's initial public hearing. If a continuation <br/>
<a id="pl.39.28"></a><var>39.28</var>hearing is held, the subsequent hearing must be held either immediately following the <br/>
<a id="pl.39.29"></a><var>39.29</var>continuation hearing or on a date subsequent to the continuation hearing. The subsequent <br/>
<a id="pl.39.30"></a><var>39.30</var>hearing may be held at a regularly scheduled board or council meeting or at a special <br/>
<a id="pl.39.31"></a><var>39.31</var>meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing <br/>
<a id="pl.39.32"></a><var>39.32</var>of a taxing authority does not have to be coordinated by the county auditor to prevent a <br/>
<a id="pl.39.33"></a><var>39.33</var>conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any <br/>
<a id="pl.39.34"></a><var>39.34</var>other taxing authority. All subsequent hearings must be held prior to five working days <br/>
<a id="pl.39.35"></a><var>39.35</var>after December 20 of the levy year. The date, time, and place of the subsequent hearing <br/>
<a id="pl.39.36"></a><var>39.36</var>must be announced at the initial public hearing or at the continuation hearing.<br/>
<a id="pl.40.1"></a><var>40.1</var>(m) (a) The property tax levy certified under section 
         <statute_ref>275.07</statute_ref> by a city of any <br/>
<a id="pl.40.2"></a><var>40.2</var>population, county, metropolitan special taxing district, regional library district, or school <br/>
<a id="pl.40.3"></a><var>40.3</var>district must not exceed the proposed levy determined under subdivision 1, except by an <br/>
<a id="pl.40.4"></a><var>40.4</var>amount up to the sum of the following amounts:<br/>
<a id="pl.40.5"></a><var>40.5</var>(1) the amount of a school district levy whose voters approved a referendum to <br/>
<a id="pl.40.6"></a><var>40.6</var>increase taxes under section 
         <statute_ref>123B.63, subdivision 3</statute_ref>, or 
         <statute_ref>126C.17, subdivision 9</statute_ref>, after <br/>
<a id="pl.40.7"></a><var>40.7</var>the proposed levy was certified;<br/>
<a id="pl.40.8"></a><var>40.8</var>(2) the amount of a city or county levy approved by the voters after the proposed <br/>
<a id="pl.40.9"></a><var>40.9</var>levy was certified;<br/>
<a id="pl.40.10"></a><var>40.10</var>(3) the amount of a levy to pay principal and interest on bonds approved by the <br/>
<a id="pl.40.11"></a><var>40.11</var>voters under section 
         <statute_ref>475.58</statute_ref> after the proposed levy was certified;<br/>
<a id="pl.40.12"></a><var>40.12</var>(4) the amount of a levy to pay costs due to a natural disaster occurring after the <br/>
<a id="pl.40.13"></a><var>40.13</var>proposed levy was certified, if that amount is approved by the commissioner of revenue <br/>
<a id="pl.40.14"></a><var>40.14</var>under subdivision 6a;<br/>
<a id="pl.40.15"></a><var>40.15</var>(5) the amount of a levy to pay tort judgments against a taxing authority that become <br/>
<a id="pl.40.16"></a><var>40.16</var>final after the proposed levy was certified, if the amount is approved by the commissioner <br/>
<a id="pl.40.17"></a><var>40.17</var>of revenue under subdivision 6a;<br/>
<a id="pl.40.18"></a><var>40.18</var>(6) the amount of an increase in levy limits certified to the taxing authority by the <br/>
<a id="pl.40.19"></a><var>40.19</var>commissioner of education or the commissioner of revenue after the proposed levy was <br/>
<a id="pl.40.20"></a><var>40.20</var>certified; and<br/>
<a id="pl.40.21"></a><var>40.21</var>(7) the amount required under section 
         <statute_ref>126C.55</statute_ref>; and<br/>
<a id="pl.40.22"></a><var>40.22</var>(8) the amount of unallotment under section 16A.152 that was recertified under <br/>
<a id="pl.40.23"></a><var>40.23</var>section 275.07, subdivision 6.<br/>
<a id="pl.40.24"></a><var>40.24</var>(n) (b) This subdivision does not apply to towns and special taxing districts other <br/>
<a id="pl.40.25"></a><var>40.25</var>than regional library districts and metropolitan special taxing districts.<br/>
<a id="pl.40.26"></a><var>40.26</var>(o) (c) Notwithstanding the requirements of this section, the employer is required to <br/>
<a id="pl.40.27"></a><var>40.27</var>meet and negotiate over employee compensation as provided for in chapter 179A.<br/>
<a id="pl.40.28"></a><var>40.28</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.40.29"></a><var>40.29</var>thereafter.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.40.30"></a><var>40.30</var>    Sec. 7. Minnesota Statutes 2008, section 275.07, subdivision 1, is amended to read:<br/>
<a id="pl.40.31"></a><var>40.31</var>    Subdivision 1. <b>Certification of levy.</b> (a) Except as provided under paragraph (b), <br/>
<a id="pl.40.32"></a><var>40.32</var>the taxes voted by cities, counties, school districts, and special districts shall be certified <br/>
<a id="pl.40.33"></a><var>40.33</var>by the proper authorities to the county auditor on or before five working days after <br/>
<a id="pl.40.34"></a><var>40.34</var>December 20 10 in each year. A town must certify the levy adopted by the town board to <br/>
<a id="pl.40.35"></a><var>40.35</var>the county auditor by September 15 5 each year. If the town board modifies the levy at <br/>
<a id="pl.41.1"></a><var>41.1</var>a special town meeting after September 15 5, the town board must recertify its levy to <br/>
<a id="pl.41.2"></a><var>41.2</var>the county auditor on or before five working days after December 20 10. If a city, town, <br/>
<a id="pl.41.3"></a><var>41.3</var>county, school district, or special district fails to certify its levy by that date, its levy shall <br/>
<a id="pl.41.4"></a><var>41.4</var>be the amount levied by it for the preceding year.<br/>
<a id="pl.41.5"></a><var>41.5</var>(b)(i) The taxes voted by counties under sections 
         <statute_ref>103B.241</statute_ref>, 
         <statute_ref>103B.245</statute_ref>, and <br/>
<statute_ref><a id="pl.41.6"></a><var>41.6</var>103B.251
         </statute_ref> shall be separately certified by the county to the county auditor on or before <br/>
<a id="pl.41.7"></a><var>41.7</var>five working days after December 20 10 in each year. The taxes certified shall not be <br/>
<a id="pl.41.8"></a><var>41.8</var>reduced by the county auditor by the aid received under section 
         <statute_ref>273.1398, subdivision <br/>
<a id="pl.41.9"></a><var>41.9</var>3
         </statute_ref>. If a county fails to certify its levy by that date, its levy shall be the amount levied by <br/>
<a id="pl.41.10"></a><var>41.10</var>it for the preceding year.<br/>
<a id="pl.41.11"></a><var>41.11</var>(ii) For purposes of the proposed property tax notice under section 
         <statute_ref>275.065</statute_ref> and <br/>
<a id="pl.41.12"></a><var>41.12</var>the property tax statement under section 
         <statute_ref>276.04</statute_ref>, for the first year in which the county <br/>
<a id="pl.41.13"></a><var>41.13</var>implements the provisions of this paragraph, the county auditor shall reduce the county's <br/>
<a id="pl.41.14"></a><var>41.14</var>levy for the preceding year to reflect any amount levied for water management purposes <br/>
<a id="pl.41.15"></a><var>41.15</var>under clause (i) included in the county's levy.<br/>
<a id="pl.41.16"></a><var>41.16</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes payable in 2011 <br/>
<a id="pl.41.17"></a><var>41.17</var>and thereafter.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.41.18"></a><var>41.18</var>    Sec. 8. Minnesota Statutes 2008, section 275.07, subdivision 4, is amended to read:<br/>
<a id="pl.41.19"></a><var>41.19</var>    Subd. 4. <b>Report to commissioner.</b> (a) On or before October 8 September 20 of <br/>
<a id="pl.41.20"></a><var>41.20</var>each year, the county auditor shall report to the commissioner of revenue the proposed <br/>
<a id="pl.41.21"></a><var>41.21</var>levy certified by local units of government under section 
         <statute_ref>275.065, subdivision 1</statute_ref>. If <br/>
<a id="pl.41.22"></a><var>41.22</var>any taxing authorities have notified the county auditor that they are in the process of <br/>
<a id="pl.41.23"></a><var>41.23</var>negotiating an agreement for sharing, merging, or consolidating services but that when <br/>
<a id="pl.41.24"></a><var>41.24</var>the proposed levy was certified under section 
         <statute_ref>275.065, subdivision 1c</statute_ref>, the agreement was <br/>
<a id="pl.41.25"></a><var>41.25</var>not yet finalized, the county auditor shall supply that information to the commissioner <br/>
<a id="pl.41.26"></a><var>41.26</var>when filing the report under this section and shall recertify the affected levies as soon as <br/>
<a id="pl.41.27"></a><var>41.27</var>practical after October 10 September 25.<br/>
<a id="pl.41.28"></a><var>41.28</var>(b) On or before January 15 5 of each year, the county auditor shall report to the <br/>
<a id="pl.41.29"></a><var>41.29</var>commissioner of revenue the final levy certified by local units of government under <br/>
<a id="pl.41.30"></a><var>41.30</var>subdivision 1.<br/>
<a id="pl.41.31"></a><var>41.31</var>(c) The levies must be reported in the manner prescribed by the commissioner.<br/>
<a id="pl.41.32"></a><var>41.32</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes payable in 2011 <br/>
<a id="pl.41.33"></a><var>41.33</var>and thereafter.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.42.1"></a><var>42.1</var>    Sec. 9. Minnesota Statutes 2008, section 375.194, subdivision 5, is amended to read:<br/>
<a id="pl.42.2"></a><var>42.2</var>    Subd. 5. <b>Determination of county tax rate.</b> The eligible county's proposed and <br/>
<a id="pl.42.3"></a><var>42.3</var>final tax rates shall be determined by dividing the certified levy by the total taxable net tax <br/>
<a id="pl.42.4"></a><var>42.4</var>capacity, without regard to any abatements granted under this section. The county board <br/>
<a id="pl.42.5"></a><var>42.5</var>shall make available the estimated amount of the abatement at the public hearing under <br/>
<a id="pl.42.6"></a><var>42.6</var>section 
<statute_ref>275.065, subdivision 6</statute_ref>. <br/>
<a id="pl.42.7"></a><var>42.7</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.42.8"></a><var>42.8</var>thereafter.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.42.9"></a><var>42.9</var>    Sec. 10. Minnesota Statutes 2008, section 383A.75, subdivision 3, is amended to read:<br/>
<a id="pl.42.10"></a><var>42.10</var>    Subd. 3. <b>Duties.</b> The committee is authorized to and shall meet from time to time <br/>
<a id="pl.42.11"></a><var>42.11</var>to make appropriate recommendations for the efficient and effective use of property tax <br/>
<a id="pl.42.12"></a><var>42.12</var>dollars raised by the jurisdictions for programs, buildings, and operations. In addition, <br/>
<a id="pl.42.13"></a><var>42.13</var>the committee shall:<br/>
<a id="pl.42.14"></a><var>42.14</var>(1) identify trends and factors likely to be driving budget outcomes over the next <br/>
<a id="pl.42.15"></a><var>42.15</var>five years with recommendations for how the jurisdictions should manage those trends <br/>
<a id="pl.42.16"></a><var>42.16</var>and factors to increase efficiency and effectiveness;<br/>
<a id="pl.42.17"></a><var>42.17</var>(2) agree, by October 1 of each year, on the appropriate level of overall property tax <br/>
<a id="pl.42.18"></a><var>42.18</var>levy for the three jurisdictions and publicly report such to the governing bodies of each <br/>
<a id="pl.42.19"></a><var>42.19</var>jurisdiction for ratification or modification by resolution; and<br/>
<a id="pl.42.20"></a><var>42.20</var>(3) plan for the joint truth-in-taxation hearings under section 
<statute_ref>275.065, subdivision <br/>
<a id="pl.42.21"></a><var>42.21</var>8
</statute_ref>; and  <br/>
<a id="pl.42.22"></a><var>42.22</var>(4) (3) identify, by December 31 of each year, areas of the budget to be targeted in <br/>
<a id="pl.42.23"></a><var>42.23</var>the coming year for joint review to improve services or achieve efficiencies.<br/>
<a id="pl.42.24"></a><var>42.24</var>In carrying out its duties, the committee shall consult with public employees of <br/>
<a id="pl.42.25"></a><var>42.25</var>each jurisdiction and with other stakeholders of the city, county, and school district, as <br/>
<a id="pl.42.26"></a><var>42.26</var>appropriate.<br/>
<a id="pl.42.27"></a><var>42.27</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.42.28"></a><var>42.28</var>thereafter.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.42.29"></a><var>42.29</var>    Sec. 11. Minnesota Statutes 2008, section 446A.086, subdivision 8, is amended to read:<br/>
<a id="pl.42.30"></a><var>42.30</var>    Subd. 8. <b>Tax levy for repayment.</b> (a) With the approval of the authority, a <br/>
<a id="pl.42.31"></a><var>42.31</var>governmental unit may levy in the year the state makes a payment under this section an <br/>
<a id="pl.42.32"></a><var>42.32</var>amount up to the amount necessary to provide funds for the repayment of the amount paid <br/>
<a id="pl.42.33"></a><var>42.33</var>by the state plus interest through the date of estimated repayment by the governmental <br/>
<a id="pl.43.1"></a><var>43.1</var>unit. The proceeds of this levy may be used only for this purpose unless they exceed the <br/>
<a id="pl.43.2"></a><var>43.2</var>amount actually due. Any excess must be used to repay other state payments made under <br/>
<a id="pl.43.3"></a><var>43.3</var>this section or must be deposited in the debt redemption fund of the governmental unit. <br/>
<a id="pl.43.4"></a><var>43.4</var>The amount of aids to be reduced to repay the state are decreased by the amount levied.<br/>
<a id="pl.43.5"></a><var>43.5</var>    (b) If the state is not repaid in full for a payment made under this section by <br/>
<a id="pl.43.6"></a><var>43.6</var>November 30 of the calendar year following the year in which the state makes the <br/>
<a id="pl.43.7"></a><var>43.7</var>payment, the authority shall require the governmental unit to certify a property tax levy in <br/>
<a id="pl.43.8"></a><var>43.8</var>an amount up to the amount necessary to provide funds for repayment of the amount paid <br/>
<a id="pl.43.9"></a><var>43.9</var>by the state plus interest through the date of estimated repayment by the governmental unit. <br/>
<a id="pl.43.10"></a><var>43.10</var>To prevent undue hardship, the authority may allow the governmental unit to certify the <br/>
<a id="pl.43.11"></a><var>43.11</var>levy over a five-year period. The proceeds of the levy may be used only for this purpose <br/>
<a id="pl.43.12"></a><var>43.12</var>unless they are in excess of the amount actually due, in which case the excess must be used <br/>
<a id="pl.43.13"></a><var>43.13</var>to repay other state payments made under this section or must be deposited in the debt <br/>
<a id="pl.43.14"></a><var>43.14</var>redemption fund of the governmental unit. If the authority orders the governmental unit to <br/>
<a id="pl.43.15"></a><var>43.15</var>levy, the amount of aids reduced to repay the state are decreased by the amount levied.<br/>
<a id="pl.43.16"></a><var>43.16</var>    (c) A levy under this subdivision is an increase in the levy limits of the governmental <br/>
<a id="pl.43.17"></a><var>43.17</var>unit for purposes of section 
<statute_ref>275.065, subdivision 6</statute_ref>, and must be explained as a specific <br/>
<a id="pl.43.18"></a><var>43.18</var>increase at the meeting required under that provision.<br/>
<a id="pl.43.19"></a><var>43.19</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.43.20"></a><var>43.20</var>thereafter.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.43.21"></a><var>43.21</var>    Sec. 12. Minnesota Statutes 2008, section 465.719, subdivision 9, is amended to read:<br/>
<a id="pl.43.22"></a><var>43.22</var>    Subd. 9. <b>Application of other laws.</b> A corporation created by a political subdivision <br/>
<a id="pl.43.23"></a><var>43.23</var>under this section must comply with every law that applies to the political subdivision, <br/>
<a id="pl.43.24"></a><var>43.24</var>as if the corporation is a part of the political subdivision, unless the resolution ratifying <br/>
<a id="pl.43.25"></a><var>43.25</var>creation of the corporation specifically exempts the corporation from part or all of a law. <br/>
<a id="pl.43.26"></a><var>43.26</var>If the resolution exempts the corporation from part or all of a law, the resolution must <br/>
<a id="pl.43.27"></a><var>43.27</var>make a detailed and specific finding as to why the corporation cannot fulfill its purpose if <br/>
<a id="pl.43.28"></a><var>43.28</var>the corporation is subject to that law. A corporation may not be exempted from chapter <br/>
<a id="pl.43.29"></a><var>43.29</var>13D, the Minnesota Open Meeting Law, sections 
         <statute_ref>138.163</statute_ref> to 
         <statute_ref>138.25</statute_ref>, governing records <br/>
<a id="pl.43.30"></a><var>43.30</var>management, or chapter 13, the Minnesota Government Data Practices Act. Any affected <br/>
<a id="pl.43.31"></a><var>43.31</var>or interested person may bring an action in district court to void the resolution on the <br/>
<a id="pl.43.32"></a><var>43.32</var>grounds that the findings are not sufficiently detailed and specific, or that the corporation <br/>
<a id="pl.43.33"></a><var>43.33</var>can fulfill its purpose if it is subject to the law from which the resolution exempts the <br/>
<a id="pl.43.34"></a><var>43.34</var>corporation. Laws that apply to a political subdivision that also apply to a corporation <br/>
<a id="pl.43.35"></a><var>43.35</var>created by a political subdivision under this subdivision include, but are not limited to:  <br/>
<a id="pl.44.1"></a><var>44.1</var>(1) chapter 13D, the Minnesota Open Meeting Law;<br/>
<a id="pl.44.2"></a><var>44.2</var>(2) chapter 13, the Minnesota Government Data Practices Act;<br/>
<a id="pl.44.3"></a><var>44.3</var>(3) section 
         <statute_ref>471.345</statute_ref>, the Uniform Municipal Contracting Law;  <br/>
<a id="pl.44.4"></a><var>44.4</var>(4) sections 
         <statute_ref>43A.17</statute_ref>, limiting the compensation of employees based on the governor's <br/>
<a id="pl.44.5"></a><var>44.5</var>salary; 
         <statute_ref>471.991</statute_ref> to 
         <statute_ref>471.999</statute_ref>, providing for equitable pay; and 
         <statute_ref>465.72</statute_ref> and 
         <statute_ref>465.722</statute_ref>, <br/>
<a id="pl.44.6"></a><var>44.6</var>governing severance pay;  <br/>
<a id="pl.44.7"></a><var>44.7</var>(5) section 
<statute_ref>275.065</statute_ref>, providing for truth-in-taxation hearings. If any tax revenues of <br/>
<a id="pl.44.8"></a><var>44.8</var>the political subdivision will be appropriated to the corporation, the corporation's annual <br/>
<a id="pl.44.9"></a><var>44.9</var>operating and capital budgets must be included in the truth-in-taxation hearing of the <br/>
<a id="pl.44.10"></a><var>44.10</var>political subdivision that created the corporation;  <br/>
<a id="pl.44.11"></a><var>44.11</var>(6) (5) if the corporation issues debt, its debt is included in the political subdivision's <br/>
<a id="pl.44.12"></a><var>44.12</var>debt limit if it would be included if issued by the political subdivision, and issuance of the <br/>
<a id="pl.44.13"></a><var>44.13</var>debt is subject to the election and other requirements of chapter 475 and section 
         <statute_ref>471.69</statute_ref>;  <br/>
<a id="pl.44.14"></a><var>44.14</var>(7) (6) section 
         <statute_ref>471.895</statute_ref>, prohibiting acceptance of gifts from interested parties, and <br/>
<a id="pl.44.15"></a><var>44.15</var>sections 
         <statute_ref>471.87</statute_ref> to 
         <statute_ref>471.89</statute_ref>, relating to interests in contracts;  <br/>
<a id="pl.44.16"></a><var>44.16</var>(8) (7) chapter 466, relating to municipal tort liability;<br/>
<a id="pl.44.17"></a><var>44.17</var>(9) (8) chapter 118A, requiring deposit insurance or bond or pledged collateral for <br/>
<a id="pl.44.18"></a><var>44.18</var>deposits;<br/>
<a id="pl.44.19"></a><var>44.19</var>(10) (9) chapter 118A, restricting investments;<br/>
<a id="pl.44.20"></a><var>44.20</var>(11) (10) section 
         <statute_ref>471.346</statute_ref>, requiring ownership of vehicles to be identified;  <br/>
<a id="pl.44.21"></a><var>44.21</var>(12) (11) sections 
         <statute_ref>471.38</statute_ref> to 
         <statute_ref>471.41</statute_ref>, requiring claims to be in writing, itemized, and <br/>
<a id="pl.44.22"></a><var>44.22</var>approved by the governing board before payment can be made; and  <br/>
<a id="pl.44.23"></a><var>44.23</var>(13) (12) the corporation cannot make advances of pay, make or guarantee loans to <br/>
<a id="pl.44.24"></a><var>44.24</var>employees, or provide in-kind benefits unless authorized by law.<br/>
<a id="pl.44.25"></a><var>44.25</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.44.26"></a><var>44.26</var>thereafter.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.44.27"></a><var>44.27</var>    Sec. 13. Minnesota Statutes 2008, section 473.13, subdivision 1, is amended to read:<br/>
<a id="pl.44.28"></a><var>44.28</var>    Subdivision 1. <b>Budget.</b> (a) On or before December 20 10 of each year, the council, <br/>
<a id="pl.44.29"></a><var>44.29</var>after the public hearing required in section 
<statute_ref>275.065</statute_ref>, shall adopt a final budget covering its <br/>
<a id="pl.44.30"></a><var>44.30</var>anticipated receipts and disbursements for the ensuing year and shall decide upon the total <br/>
<a id="pl.44.31"></a><var>44.31</var>amount necessary to be raised from ad valorem tax levies to meet its budget. The budget <br/>
<a id="pl.44.32"></a><var>44.32</var>shall state in detail the expenditures for each program to be undertaken, including the <br/>
<a id="pl.44.33"></a><var>44.33</var>expenses for salaries, consultant services, overhead, travel, printing, and other items. The <br/>
<a id="pl.44.34"></a><var>44.34</var>budget shall state in detail the capital expenditures of the council for the budget year, based <br/>
<a id="pl.44.35"></a><var>44.35</var>on a five-year capital program adopted by the council and transmitted to the legislature. <br/>
<a id="pl.45.1"></a><var>45.1</var>After adoption of the budget and no later than five working days after December 20, the <br/>
<a id="pl.45.2"></a><var>45.2</var>council shall certify to the auditor of each metropolitan county the share of the tax to be <br/>
<a id="pl.45.3"></a><var>45.3</var>levied within that county, which must be an amount bearing the same proportion to the <br/>
<a id="pl.45.4"></a><var>45.4</var>total levy agreed on by the council as the net tax capacity of the county bears to the net tax <br/>
<a id="pl.45.5"></a><var>45.5</var>capacity of the metropolitan area. The maximum amount of any levy made for the purpose <br/>
<a id="pl.45.6"></a><var>45.6</var>of this chapter may not exceed the limits set by the statute authorizing the levy.  <br/>
<a id="pl.45.7"></a><var>45.7</var>(b) Each even-numbered year the council shall prepare for its transit programs a <br/>
<a id="pl.45.8"></a><var>45.8</var>financial plan for the succeeding three calendar years, in half-year segments. The financial <br/>
<a id="pl.45.9"></a><var>45.9</var>plan must contain schedules of user charges and any changes in user charges planned or <br/>
<a id="pl.45.10"></a><var>45.10</var>anticipated by the council during the period of the plan. The financial plan must contain a <br/>
<a id="pl.45.11"></a><var>45.11</var>proposed request for state financial assistance for the succeeding biennium.<br/>
<a id="pl.45.12"></a><var>45.12</var>(c) In addition, the budget must show for each year:<br/>
<a id="pl.45.13"></a><var>45.13</var>(1) the estimated operating revenues from all sources including funds on hand at the <br/>
<a id="pl.45.14"></a><var>45.14</var>beginning of the year, and estimated expenditures for costs of operation, administration, <br/>
<a id="pl.45.15"></a><var>45.15</var>maintenance, and debt service;<br/>
<a id="pl.45.16"></a><var>45.16</var>(2) capital improvement funds estimated to be on hand at the beginning of the year <br/>
<a id="pl.45.17"></a><var>45.17</var>and estimated to be received during the year from all sources and estimated cost of capital <br/>
<a id="pl.45.18"></a><var>45.18</var>improvements to be paid out or expended during the year, all in such detail and form as <br/>
<a id="pl.45.19"></a><var>45.19</var>the council may prescribe; and<br/>
<a id="pl.45.20"></a><var>45.20</var>(3) the estimated source and use of pass-through funds.<br/>
<a id="pl.45.21"></a><var>45.21</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.45.22"></a><var>45.22</var>thereafter, except that the date change in certifying the budget is effective for taxes <br/>
<a id="pl.45.23"></a><var>45.23</var>payable in 2011 and thereafter.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.45.24"></a><var>45.24</var>    Sec. 14. <b> REPEALER.</b><br/>
<a id="pl.45.25"></a><var>45.25</var>Minnesota Statutes 2008, section 275.065, subdivisions 5a, 6b, 6c, 8, 9, and 10, are <br/>
<a id="pl.45.26"></a><var>45.26</var>repealed.<br/>
<a id="pl.45.27"></a><var>45.27</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.45.28"></a><var>45.28</var>thereafter.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.45.31"></a><var>45.31</var>    Section 1. Minnesota Statutes 2008, section 272.02, subdivision 7, is amended to read:<br/>
<a id="pl.45.32"></a><var>45.32</var>    Subd. 7. <b>Institutions of public charity.</b> (a) Institutions of purely public charity that <br/>
<a id="pl.45.33"></a><var>45.33</var>are exempt from federal income taxation under section 501(c)(3) of the Internal Revenue <br/>
<a id="pl.46.1"></a><var>46.1</var>Code are exempt. if they meet the requirements of this subdivision. In determining <br/>
<a id="pl.46.2"></a><var>46.2</var>whether real property is exempt under this subdivision, the following factors must be <br/>
<a id="pl.46.3"></a><var>46.3</var>considered:<br/>
<a id="pl.46.4"></a><var>46.4</var>(1) whether the stated purpose of the undertaking is to be helpful to others without <br/>
<a id="pl.46.5"></a><var>46.5</var>immediate expectation of material reward;<br/>
<a id="pl.46.6"></a><var>46.6</var>(2) whether the institution of public charity is supported by material donations, gifts, <br/>
<a id="pl.46.7"></a><var>46.7</var>or government grants for services to the public in whole or in part;<br/>
<a id="pl.46.8"></a><var>46.8</var>(3) whether a material number of the recipients of the charity receive benefits or <br/>
<a id="pl.46.9"></a><var>46.9</var>services at reduced or no cost, or whether the organization provides services to the public <br/>
<a id="pl.46.10"></a><var>46.10</var>that alleviate burdens or responsibilities that would otherwise be borne by the government;<br/>
<a id="pl.46.11"></a><var>46.11</var>(4) whether the income received, including material gifts and donations, produces a <br/>
<a id="pl.46.12"></a><var>46.12</var>profit to the charitable institution that is distributed to private interests;<br/>
<a id="pl.46.13"></a><var>46.13</var>(5) whether the beneficiaries of the charity are restricted or unrestricted, and, if <br/>
<a id="pl.46.14"></a><var>46.14</var>restricted, whether the class of persons to whom the charity is made available is one <br/>
<a id="pl.46.15"></a><var>46.15</var>having a reasonable relationship to the charitable objectives; and<br/>
<a id="pl.46.16"></a><var>46.16</var>(6) whether dividends, in form or substance, or assets upon dissolution, are available <br/>
<a id="pl.46.17"></a><var>46.17</var>to private interests.<br/>
<a id="pl.46.18"></a><var>46.18</var>A charitable organization must satisfy the factors in clauses (1) to (6) for its property <br/>
<a id="pl.46.19"></a><var>46.19</var>to be exempt under this subdivision, unless there is a reasonable justification for missing <br/>
<a id="pl.46.20"></a><var>46.20</var>the factors in clause (2), (3), or (5). If there is reasonable justification for failing to meet <br/>
<a id="pl.46.21"></a><var>46.21</var>the factors in clause (2), (3), or (5), an organization is a purely public charity under this <br/>
<a id="pl.46.22"></a><var>46.22</var>subdivision without meeting those factors. After an exemption is properly granted under <br/>
<a id="pl.46.23"></a><var>46.23</var>this subdivision, it remains in effect unless there is a material change in facts.<br/>
<a id="pl.46.24"></a><var>46.24</var>(b) For purposes of this subdivision, a grant is a written instrument or electronic <br/>
<a id="pl.46.25"></a><var>46.25</var>document defining a legal relationship between a granting agency and a grantee when <br/>
<a id="pl.46.26"></a><var>46.26</var>the principal purpose of the relationship is to transfer cash or something of value to the <br/>
<a id="pl.46.27"></a><var>46.27</var>grantee to support a public purpose authorized by law in a general manner instead of <br/>
<a id="pl.46.28"></a><var>46.28</var>acquiring by professional or technical contract, purchase, lease, or barter property or <br/>
<a id="pl.46.29"></a><var>46.29</var>services for the direct benefit or use of the granting agency.<br/>
<a id="pl.46.30"></a><var>46.30</var>(c) In determining whether rental housing property qualifies for exemption under <br/>
<a id="pl.46.31"></a><var>46.31</var>this subdivision, the following are not gifts or donations to the owner of the rental housing:<br/>
<a id="pl.46.32"></a><var>46.32</var>(1) rent assistance provided by the government to or on behalf of tenants; and<br/>
<a id="pl.46.33"></a><var>46.33</var>(2) financing assistance or tax credits provided by the government to the owner on <br/>
<a id="pl.46.34"></a><var>46.34</var>condition that specific units or a specific quantity of units be set aside for persons or <br/>
<a id="pl.46.35"></a><var>46.35</var>families with certain income characteristics.<br/>
<a id="pl.47.1"></a><var>47.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.47.2"></a><var>47.2</var>thereafter.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.47.3"></a><var>47.3</var>    Sec. 2. <b>PURPOSE; COMMISSIONER OF REVENUE GUIDANCE.</b><br/>
<a id="pl.47.4"></a><var>47.4</var>The purpose of Minnesota Statutes, section 272.02, subdivision 7, is not to contract <br/>
<a id="pl.47.5"></a><var>47.5</var>or expand the definition of "institutions of purely public charity" but to provide clear <br/>
<a id="pl.47.6"></a><var>47.6</var>standards that can be applied uniformly to determine eligibility for exemption from <br/>
<a id="pl.47.7"></a><var>47.7</var>property taxation. To carry out this purpose and to promote uniformity in application of <br/>
<a id="pl.47.8"></a><var>47.8</var>the provisions of Minnesota Statutes, section 272.02, subdivision 7, the commissioner of <br/>
<a id="pl.47.9"></a><var>47.9</var>revenue shall prepare a bulletin providing guidance to assessors as to the commissioner's <br/>
<a id="pl.47.10"></a><var>47.10</var>interpretation of Minnesota Statutes, section 272.02, subdivision 7. The bulletin may <br/>
<a id="pl.47.11"></a><var>47.11</var>include a discussion of court decisions that provide background to and context for <br/>
<a id="pl.47.12"></a><var>47.12</var>Minnesota Statutes, section 272.02, subdivision 7, as the commissioner deems appropriate. <br/>
<a id="pl.47.13"></a><var>47.13</var>This guidance must include examples of facts or circumstances that satisfy the requirement <br/>
<a id="pl.47.14"></a><var>47.14</var>of "a reasonable justification for failing to meet clause (2), (3), or (5)" under Minnesota <br/>
<a id="pl.47.15"></a><var>47.15</var>Statutes, section 272.02, subdivision 7. Assessors shall give due consideration to the <br/>
<a id="pl.47.16"></a><var>47.16</var>bulletin in assessing property requesting an exemption as an institution of purely public <br/>
<a id="pl.47.17"></a><var>47.17</var>charity. The commissioner shall distribute the bulletin to all assessors by July 1, 2010. <br/>
<a id="pl.47.18"></a><var>47.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.47.19"></a><var>47.19</var>    Sec. 3. Minnesota Statutes 2008, section 272.02, is amended by adding a subdivision <br/>
<a id="pl.47.20"></a><var>47.20</var>to read:<br/>
<a id="pl.47.21"></a><var>47.21</var>    Subd. 90. <b>Nursing homes.</b> A nursing home licensed under section 144A.02 or a <br/>
<a id="pl.47.22"></a><var>47.22</var>boarding care home certified as a nursing facility under title 19 of the Social Security <br/>
<a id="pl.47.23"></a><var>47.23</var>Act that is exempt from federal income taxation pursuant to section 501(c)(3) of the <br/>
<a id="pl.47.24"></a><var>47.24</var>Internal Revenue Code is exempt from property taxation if the nursing home or boarding <br/>
<a id="pl.47.25"></a><var>47.25</var>care home either:<br/>
<a id="pl.47.26"></a><var>47.26</var>(1) is certified to participate in the medical assistance program under title 19 of <br/>
<a id="pl.47.27"></a><var>47.27</var>the Social Security Act; or<br/>
<a id="pl.47.28"></a><var>47.28</var>(2) certifies to the commissioner of revenue that it does not discharge residents <br/>
<a id="pl.47.29"></a><var>47.29</var>due to the inability to pay.<br/>
<a id="pl.47.30"></a><var>47.30</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.47.31"></a><var>47.31</var>thereafter.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.47.32"></a><var>47.32</var>    Sec. 4. Minnesota Statutes 2008, section 273.1231, subdivision 1, is amended to read:<br/>
<a id="pl.48.1"></a><var>48.1</var>    Subdivision 1.  <b>Applicability. </b> For purposes of sections 
         <statute_ref>273.1231</statute_ref> to 
         <statute_ref>273.1235</statute_ref> <br/>
<a id="pl.48.2"></a><var>48.2</var>273.1236, the following words, terms, and phrases have the meanings given them in this <br/>
<a id="pl.48.3"></a><var>48.3</var>section unless the language or context clearly indicates that a different meaning is intended. <br/>
<a id="pl.48.4"></a><var>48.4</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2009 and <br/>
<a id="pl.48.5"></a><var>48.5</var>thereafter.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.48.6"></a><var>48.6</var>    Sec. 5. Minnesota Statutes 2008, section 273.1232, subdivision 1, is amended to read:<br/>
<a id="pl.48.7"></a><var>48.7</var>    Subdivision 1.  <b>Reassessments required. </b> For the purposes of sections 
         <statute_ref>273.1231 </statute_ref>to <br/>
<statute_ref><a id="pl.48.8"></a><var>48.8</var>273.1235
</statute_ref> 273.1236, the county assessor must reassess all damaged property in a disaster <br/>
<a id="pl.48.9"></a><var>48.9</var>or emergency area, except that the commissioner of revenue shall reassess all property <br/>
<a id="pl.48.10"></a><var>48.10</var>for which an application is submitted to the commissioner under section 
         <statute_ref>273.1233</statute_ref> or <br/>
<statute_ref><a id="pl.48.11"></a><var>48.11</var>273.1235
         </statute_ref>. As soon as practical, the assessor or commissioner of revenue must report <br/>
<a id="pl.48.12"></a><var>48.12</var>the reassessed value to the county auditor. <br/>
<a id="pl.48.13"></a><var>48.13</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2009 and <br/>
<a id="pl.48.14"></a><var>48.14</var>thereafter.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.48.15"></a><var>48.15</var>    Sec. 6. <b>[273.1236] DISASTER-DAMAGED HOMES; PARTIAL VALUATION </b><br/>
<a id="pl.48.16"></a><var>48.16</var><b>EXCLUSION.</b><br/>
<a id="pl.48.17"></a><var>48.17</var>(a) A homestead property that (1) sustained physical damage from a disaster or <br/>
<a id="pl.48.18"></a><var>48.18</var>emergency resulting in a reassessed market value that is at least $15,000 less than the <br/>
<a id="pl.48.19"></a><var>48.19</var>market value of the property established for the January 2 assessment in the year in which <br/>
<a id="pl.48.20"></a><var>48.20</var>the damage occurred, (2) has been restored or rebuilt by the end of the year following the <br/>
<a id="pl.48.21"></a><var>48.21</var>year in which the damage occurred, (3) has a gross living area after reconstruction that <br/>
<a id="pl.48.22"></a><var>48.22</var>does not exceed 150 percent of the gross living area prior to the disaster or emergency, and <br/>
<a id="pl.48.23"></a><var>48.23</var>(4) has an estimated market value for the assessment year following the year in which <br/>
<a id="pl.48.24"></a><var>48.24</var>the restoration or reconstruction was completed that exceeds its estimated market value <br/>
<a id="pl.48.25"></a><var>48.25</var>established for the January 2 assessment in the year in which the damage occurred by at <br/>
<a id="pl.48.26"></a><var>48.26</var>least $25,000 due to the restoration or reconstruction, is eligible for a valuation exclusion <br/>
<a id="pl.48.27"></a><var>48.27</var>under this section for the three assessment years immediately following the year in which <br/>
<a id="pl.48.28"></a><var>48.28</var>the restoration or reconstruction was completed.<br/>
<a id="pl.48.29"></a><var>48.29</var>(b) The assessor shall determine the difference between the estimated market value <br/>
<a id="pl.48.30"></a><var>48.30</var>established for the January 2 assessment in the year in which the damage occurred and the <br/>
<a id="pl.48.31"></a><var>48.31</var>estimated market value established for the January 2 assessment in the year following the <br/>
<a id="pl.48.32"></a><var>48.32</var>completion of the restoration or reconstruction.<br/>
<a id="pl.49.1"></a><var>49.1</var>(c) In the first assessment year following the restoration or reconstruction, all of <br/>
<a id="pl.49.2"></a><var>49.2</var>the difference identified under paragraph (b) shall be excluded in determining taxable <br/>
<a id="pl.49.3"></a><var>49.3</var>market value. In the second assessment year following the restoration or reconstruction, <br/>
<a id="pl.49.4"></a><var>49.4</var>three-quarters of the difference identified under paragraph (b) shall be excluded in <br/>
<a id="pl.49.5"></a><var>49.5</var>determining taxable market value. In the third assessment year following the restoration <br/>
<a id="pl.49.6"></a><var>49.6</var>or reconstruction, one-half of the difference identified under paragraph (b) shall be <br/>
<a id="pl.49.7"></a><var>49.7</var>excluded in determining taxable market value. In the fourth assessment year following <br/>
<a id="pl.49.8"></a><var>49.8</var>the restoration or reconstruction, one-quarter of the difference identified under paragraph <br/>
<a id="pl.49.9"></a><var>49.9</var>(b) shall be excluded in determining taxable market value.<br/>
<a id="pl.49.10"></a><var>49.10</var>(d) For the purposes of this section, "gross living area" includes only above-grade <br/>
<a id="pl.49.11"></a><var>49.11</var>living area, and does not include any finished basement living area.<br/>
<a id="pl.49.12"></a><var>49.12</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2009 and <br/>
<a id="pl.49.13"></a><var>49.13</var>thereafter.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.49.14"></a><var>49.14</var>    Sec. 7. Minnesota Statutes 2008, section 273.124, subdivision 1, is amended to read:<br/>
<a id="pl.49.15"></a><var>49.15</var>    Subdivision 1. <b>General rule.</b> (a) Residential real estate that is occupied and used <br/>
<a id="pl.49.16"></a><var>49.16</var>for the purposes of a homestead by its owner, who must be a Minnesota resident, is <br/>
<a id="pl.49.17"></a><var>49.17</var>a residential homestead.<br/>
<a id="pl.49.18"></a><var>49.18</var>    Agricultural land, as defined in section 
         <statute_ref>273.13, subdivision 23</statute_ref>, that is occupied and <br/>
<a id="pl.49.19"></a><var>49.19</var>used as a homestead by its owner, who must be a Minnesota resident, is an agricultural <br/>
<a id="pl.49.20"></a><var>49.20</var>homestead.<br/>
<a id="pl.49.21"></a><var>49.21</var>    Dates for establishment of a homestead and homestead treatment provided to <br/>
<a id="pl.49.22"></a><var>49.22</var>particular types of property are as provided in this section.<br/>
<a id="pl.49.23"></a><var>49.23</var>    Property held by a trustee under a trust is eligible for homestead classification if the <br/>
<a id="pl.49.24"></a><var>49.24</var>requirements under this chapter are satisfied.<br/>
<a id="pl.49.25"></a><var>49.25</var>    The assessor shall require proof, as provided in subdivision 13, of the facts upon <br/>
<a id="pl.49.26"></a><var>49.26</var>which classification as a homestead may be determined. Notwithstanding any other law, <br/>
<a id="pl.49.27"></a><var>49.27</var>the assessor may at any time require a homestead application to be filed in order to verify <br/>
<a id="pl.49.28"></a><var>49.28</var>that any property classified as a homestead continues to be eligible for homestead status. <br/>
<a id="pl.49.29"></a><var>49.29</var>Notwithstanding any other law to the contrary, the Department of Revenue may, upon <br/>
<a id="pl.49.30"></a><var>49.30</var>request from an assessor, verify whether an individual who is requesting or receiving <br/>
<a id="pl.49.31"></a><var>49.31</var>homestead classification has filed a Minnesota income tax return as a resident for the most <br/>
<a id="pl.49.32"></a><var>49.32</var>recent taxable year for which the information is available.<br/>
<a id="pl.49.33"></a><var>49.33</var>    When there is a name change or a transfer of homestead property, the assessor may <br/>
<a id="pl.49.34"></a><var>49.34</var>reclassify the property in the next assessment unless a homestead application is filed to <br/>
<a id="pl.49.35"></a><var>49.35</var>verify that the property continues to qualify for homestead classification.<br/>
<a id="pl.50.1"></a><var>50.1</var>    (b) For purposes of this section, homestead property shall include property which <br/>
<a id="pl.50.2"></a><var>50.2</var>is used for purposes of the homestead but is separated from the homestead by a road, <br/>
<a id="pl.50.3"></a><var>50.3</var>street, lot, waterway, or other similar intervening property. The term "used for purposes <br/>
<a id="pl.50.4"></a><var>50.4</var>of the homestead" shall include but not be limited to uses for gardens, garages, or other <br/>
<a id="pl.50.5"></a><var>50.5</var>outbuildings commonly associated with a homestead, but shall not include vacant land <br/>
<a id="pl.50.6"></a><var>50.6</var>held primarily for future development. In order to receive homestead treatment for <br/>
<a id="pl.50.7"></a><var>50.7</var>the noncontiguous property, the owner must use the property for the purposes of the <br/>
<a id="pl.50.8"></a><var>50.8</var>homestead, and must apply to the assessor, both by the deadlines given in subdivision <br/>
<a id="pl.50.9"></a><var>50.9</var>9. After initial qualification for the homestead treatment, additional applications for <br/>
<a id="pl.50.10"></a><var>50.10</var>subsequent years are not required.<br/>
<a id="pl.50.11"></a><var>50.11</var>    (c) Residential real estate that is occupied and used for purposes of a homestead by a <br/>
<a id="pl.50.12"></a><var>50.12</var>relative of the owner is a homestead but only to the extent of the homestead treatment <br/>
<a id="pl.50.13"></a><var>50.13</var>that would be provided if the related owner occupied the property. For purposes of this <br/>
<a id="pl.50.14"></a><var>50.14</var>paragraph and paragraph (g), "relative" means a parent, stepparent, child, stepchild, <br/>
<a id="pl.50.15"></a><var>50.15</var>grandparent, grandchild, brother, sister, uncle, aunt, nephew, or niece. This relationship <br/>
<a id="pl.50.16"></a><var>50.16</var>may be by blood or marriage. Property that has been classified as seasonal residential <br/>
<a id="pl.50.17"></a><var>50.17</var>recreational property at any time during which it has been owned by the current owner or <br/>
<a id="pl.50.18"></a><var>50.18</var>spouse of the current owner will not be reclassified as a homestead unless it is occupied as <br/>
<a id="pl.50.19"></a><var>50.19</var>a homestead by the owner; this prohibition also applies to property that, in the absence of <br/>
<a id="pl.50.20"></a><var>50.20</var>this paragraph, would have been classified as seasonal residential recreational property at <br/>
<a id="pl.50.21"></a><var>50.21</var>the time when the residence was constructed. Neither the related occupant nor the owner <br/>
<a id="pl.50.22"></a><var>50.22</var>of the property may claim a property tax refund under chapter 290A for a homestead <br/>
<a id="pl.50.23"></a><var>50.23</var>occupied by a relative. In the case of a residence located on agricultural land, only the <br/>
<a id="pl.50.24"></a><var>50.24</var>house, garage, and immediately surrounding one acre of land shall be classified as a <br/>
<a id="pl.50.25"></a><var>50.25</var>homestead under this paragraph, except as provided in paragraph (d). In the case of <br/>
<a id="pl.50.26"></a><var>50.26</var>nonagricultural property, this paragraph only applies to applications approved before <br/>
<a id="pl.50.27"></a><var>50.27</var>December 16, 2009.<br/>
<a id="pl.50.28"></a><var>50.28</var>    (d) Agricultural property that is occupied and used for purposes of a homestead by <br/>
<a id="pl.50.29"></a><var>50.29</var>a relative of the owner, is a homestead, only to the extent of the homestead treatment <br/>
<a id="pl.50.30"></a><var>50.30</var>that would be provided if the related owner occupied the property, and only if all of the <br/>
<a id="pl.50.31"></a><var>50.31</var>following criteria are met:<br/>
<a id="pl.50.32"></a><var>50.32</var>    (1) the relative who is occupying the agricultural property is a son, daughter, brother, <br/>
<a id="pl.50.33"></a><var>50.33</var>sister, grandson, granddaughter, father, or mother of the owner of the agricultural property <br/>
<a id="pl.50.34"></a><var>50.34</var>or a son, daughter, brother, sister, grandson, or granddaughter of the spouse of the owner <br/>
<a id="pl.50.35"></a><var>50.35</var>of the agricultural property;<br/>
<a id="pl.50.36"></a><var>50.36</var>    (2) the owner of the agricultural property must be a Minnesota resident;<br/>
<a id="pl.51.1"></a><var>51.1</var>    (3) the owner of the agricultural property must not receive homestead treatment on <br/>
<a id="pl.51.2"></a><var>51.2</var>any other agricultural property in Minnesota; and<br/>
<a id="pl.51.3"></a><var>51.3</var>    (4) the owner of the agricultural property is limited to only one agricultural <br/>
<a id="pl.51.4"></a><var>51.4</var>homestead per family under this paragraph.<br/>
<a id="pl.51.5"></a><var>51.5</var>    Neither the related occupant nor the owner of the property may claim a property <br/>
<a id="pl.51.6"></a><var>51.6</var>tax refund under chapter 290A for a homestead occupied by a relative qualifying under <br/>
<a id="pl.51.7"></a><var>51.7</var>this paragraph. For purposes of this paragraph, "agricultural property" means the house, <br/>
<a id="pl.51.8"></a><var>51.8</var>garage, other farm buildings and structures, and agricultural land.<br/>
<a id="pl.51.9"></a><var>51.9</var>    Application must be made to the assessor by the owner of the agricultural property to <br/>
<a id="pl.51.10"></a><var>51.10</var>receive homestead benefits under this paragraph. The assessor may require the necessary <br/>
<a id="pl.51.11"></a><var>51.11</var>proof that the requirements under this paragraph have been met.<br/>
<a id="pl.51.12"></a><var>51.12</var>    (e) In the case of property owned by a property owner who is married, the assessor <br/>
<a id="pl.51.13"></a><var>51.13</var>must not deny homestead treatment in whole or in part if only one of the spouses occupies <br/>
<a id="pl.51.14"></a><var>51.14</var>the property and the other spouse is absent due to: (1) marriage dissolution proceedings, <br/>
<a id="pl.51.15"></a><var>51.15</var>(2) legal separation, (3) employment or self-employment in another location, or (4) other <br/>
<a id="pl.51.16"></a><var>51.16</var>personal circumstances causing the spouses to live separately, not including an intent to <br/>
<a id="pl.51.17"></a><var>51.17</var>obtain two homestead classifications for property tax purposes. To qualify under clause <br/>
<a id="pl.51.18"></a><var>51.18</var>(3), the spouse's place of employment or self-employment must be at least 50 miles distant <br/>
<a id="pl.51.19"></a><var>51.19</var>from the other spouse's place of employment, and the homesteads must be at least 50 miles <br/>
<a id="pl.51.20"></a><var>51.20</var>distant from each other. Homestead treatment, in whole or in part, shall not be denied to <br/>
<a id="pl.51.21"></a><var>51.21</var>the owner's spouse who previously occupied the residence with the owner if the absence <br/>
<a id="pl.51.22"></a><var>51.22</var>of the owner is due to one of the exceptions provided in this paragraph.<br/>
<a id="pl.51.23"></a><var>51.23</var>    (f) The assessor must not deny homestead treatment in whole or in part if:<br/>
<a id="pl.51.24"></a><var>51.24</var>    (1) in the case of a property owner who is not married, the owner is absent due to <br/>
<a id="pl.51.25"></a><var>51.25</var>residence in a nursing home, boarding care facility, or an elderly assisted living facility <br/>
<a id="pl.51.26"></a><var>51.26</var>property as defined in section 
         <statute_ref>273.13, subdivision 25a</statute_ref>, and the property is not otherwise <br/>
<a id="pl.51.27"></a><var>51.27</var>occupied; or<br/>
<a id="pl.51.28"></a><var>51.28</var>    (2) in the case of a property owner who is married, the owner or the owner's spouse <br/>
<a id="pl.51.29"></a><var>51.29</var>or both are absent due to residence in a nursing home, boarding care facility, or an elderly <br/>
<a id="pl.51.30"></a><var>51.30</var>assisted living facility property as defined in section 
         <statute_ref>273.13, subdivision 25a</statute_ref>, and the <br/>
<a id="pl.51.31"></a><var>51.31</var>property is not occupied or is occupied only by the owner's spouse.<br/>
<a id="pl.51.32"></a><var>51.32</var>    (g) If an individual is purchasing property with the intent of claiming it as a <br/>
<a id="pl.51.33"></a><var>51.33</var>homestead and is required by the terms of the financing agreement to have a relative <br/>
<a id="pl.51.34"></a><var>51.34</var>shown on the deed as a co-owner, the assessor shall allow a full homestead classification. <br/>
<a id="pl.51.35"></a><var>51.35</var>This provision only applies to first-time purchasers, whether married or single, or to a <br/>
<a id="pl.51.36"></a><var>51.36</var>person who had previously been married and is purchasing as a single individual for the <br/>
<a id="pl.52.1"></a><var>52.1</var>first time. The application for homestead benefits must be on a form prescribed by the <br/>
<a id="pl.52.2"></a><var>52.2</var>commissioner and must contain the data necessary for the assessor to determine if full <br/>
<a id="pl.52.3"></a><var>52.3</var>homestead benefits are warranted.<br/>
<a id="pl.52.4"></a><var>52.4</var>    (h) If residential or agricultural real estate is occupied and used for purposes of a <br/>
<a id="pl.52.5"></a><var>52.5</var>homestead by a child of a deceased owner and the property is subject to jurisdiction of <br/>
<a id="pl.52.6"></a><var>52.6</var>probate court, the child shall receive relative homestead classification under paragraph (c) <br/>
<a id="pl.52.7"></a><var>52.7</var>or (d) to the same extent they would be entitled to it if the owner was still living, until <br/>
<a id="pl.52.8"></a><var>52.8</var>the probate is completed. For purposes of this paragraph, "child" includes a relationship <br/>
<a id="pl.52.9"></a><var>52.9</var>by blood or by marriage.<br/>
<a id="pl.52.10"></a><var>52.10</var>    (i) If a single-family home, duplex, or triplex classified as either residential <br/>
<a id="pl.52.11"></a><var>52.11</var>homestead or agricultural homestead is also used to provide licensed child care, the <br/>
<a id="pl.52.12"></a><var>52.12</var>portion of the property used for licensed child care must be classified as a part of the <br/>
<a id="pl.52.13"></a><var>52.13</var>homestead property.<br/>
<a id="pl.52.14"></a><var>52.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.52.15"></a><var>52.15</var>    Sec. 8. Minnesota Statutes 2008, section 273.13, subdivision 25, is amended to read:<br/>
<a id="pl.52.16"></a><var>52.16</var>    Subd. 25.  <b>Class 4.</b> (a) Class 4a is residential real estate containing four or more <br/>
<a id="pl.52.17"></a><var>52.17</var>units and used or held for use by the owner or by the tenants or lessees of the owner <br/>
<a id="pl.52.18"></a><var>52.18</var>as a residence for rental periods of 30 days or more, excluding property qualifying for <br/>
<a id="pl.52.19"></a><var>52.19</var>class 4d. Class 4a also includes hospitals licensed under sections 
         <statute_ref>144.50</statute_ref> to 
         <statute_ref>144.56</statute_ref>, other <br/>
<a id="pl.52.20"></a><var>52.20</var>than hospitals exempt under section 
         <statute_ref>272.02</statute_ref>, and contiguous property used for hospital <br/>
<a id="pl.52.21"></a><var>52.21</var>purposes, without regard to whether the property has been platted or subdivided. The <br/>
<a id="pl.52.22"></a><var>52.22</var>market value of class 4a property has a class rate of 1.25 percent. <br/>
<a id="pl.52.23"></a><var>52.23</var>    (b) Class 4b includes: <br/>
<a id="pl.52.24"></a><var>52.24</var>    (1) residential real estate containing less than four units that does not qualify as class <br/>
<a id="pl.52.25"></a><var>52.25</var>4bb, other than seasonal residential recreational property; <br/>
<a id="pl.52.26"></a><var>52.26</var>    (2) manufactured homes not classified under any other provision; <br/>
<a id="pl.52.27"></a><var>52.27</var>    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead <br/>
<a id="pl.52.28"></a><var>52.28</var>farm classified under subdivision 23, paragraph (b) containing two or three units; and <br/>
<a id="pl.52.29"></a><var>52.29</var>    (4) unimproved property that is classified residential as determined under subdivision <br/>
<a id="pl.52.30"></a><var>52.30</var>33. <br/>
<a id="pl.52.31"></a><var>52.31</var>    The market value of class 4b property has a class rate of 1.25 percent. <br/>
<a id="pl.52.32"></a><var>52.32</var>    (c) Class 4bb includes: <br/>
<a id="pl.52.33"></a><var>52.33</var>    (1) nonhomestead residential real estate containing one unit, other than seasonal <br/>
<a id="pl.52.34"></a><var>52.34</var>residential recreational property; and <br/>
<a id="pl.53.1"></a><var>53.1</var>    (2) a single family dwelling, garage, and surrounding one acre of property on a <br/>
<a id="pl.53.2"></a><var>53.2</var>nonhomestead farm classified under subdivision 23, paragraph (b). <br/>
<a id="pl.53.3"></a><var>53.3</var>    Class 4bb property has the same class rates as class 1a property under subdivision 22. <br/>
<a id="pl.53.4"></a><var>53.4</var>    Property that has been classified as seasonal residential recreational property at <br/>
<a id="pl.53.5"></a><var>53.5</var>any time during which it has been owned by the current owner or spouse of the current <br/>
<a id="pl.53.6"></a><var>53.6</var>owner does not qualify for class 4bb. <br/>
<a id="pl.53.7"></a><var>53.7</var>    (d) Class 4c property includes: <br/>
<a id="pl.53.8"></a><var>53.8</var>    (1) except as provided in subdivision 22, paragraph (c), or subdivision 23, paragraph <br/>
<a id="pl.53.9"></a><var>53.9</var>(b), clause (1), real and personal property devoted to temporary and seasonal residential <br/>
<a id="pl.53.10"></a><var>53.10</var>occupancy for recreation purposes, including real and personal property devoted to <br/>
<a id="pl.53.11"></a><var>53.11</var>temporary and seasonal residential occupancy for recreation purposes and not devoted to <br/>
<a id="pl.53.12"></a><var>53.12</var>commercial purposes for more than 250 days in the year preceding the year of assessment. <br/>
<a id="pl.53.13"></a><var>53.13</var>For purposes of this clause, property is devoted to a commercial purpose on a specific <br/>
<a id="pl.53.14"></a><var>53.14</var>day if any portion of the property is used for residential occupancy, and a fee is charged <br/>
<a id="pl.53.15"></a><var>53.15</var>for residential occupancy. Class 4c property must contain three or more rental units. A <br/>
<a id="pl.53.16"></a><var>53.16</var>"rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual <br/>
<a id="pl.53.17"></a><var>53.17</var>camping site equipped with water and electrical hookups for recreational vehicles. <br/>
<a id="pl.53.18"></a><var>53.18</var>Except for property described in item (iii), class 4c property must provide recreational <br/>
<a id="pl.53.19"></a><var>53.19</var>activities such as renting ice fishing houses, boats and motors, snowmobiles, downhill or <br/>
<a id="pl.53.20"></a><var>53.20</var>cross-country ski equipment; provide marina services, launch services, or guide services; <br/>
<a id="pl.53.21"></a><var>53.21</var>or sell bait and fishing tackle. A camping pad offered for rent by a property that otherwise <br/>
<a id="pl.53.22"></a><var>53.22</var>qualifies for class 4c is also class 4c regardless of the term of the rental agreement, as <br/>
<a id="pl.53.23"></a><var>53.23</var>long as the use of the camping pad does not exceed 250 days. In order for a property to <br/>
<a id="pl.53.24"></a><var>53.24</var>be classified as class 4c, seasonal residential recreational for commercial purposes under <br/>
<a id="pl.53.25"></a><var>53.25</var>this clause, at least 40 percent of the annual gross lodging receipts related to the property <br/>
<a id="pl.53.26"></a><var>53.26</var>must be from business conducted during 90 consecutive days and either (i) at least 60 <br/>
<a id="pl.53.27"></a><var>53.27</var>percent of all paid bookings by lodging guests during the year must be for periods of at <br/>
<a id="pl.53.28"></a><var>53.28</var>least two consecutive nights; or (ii) at least 20 percent of the annual gross receipts must <br/>
<a id="pl.53.29"></a><var>53.29</var>be from charges for rental of fish houses, boats and motors, snowmobiles, downhill or <br/>
<a id="pl.53.30"></a><var>53.30</var>cross-country ski equipment, or charges for marina services, launch services, and guide <br/>
<a id="pl.53.31"></a><var>53.31</var>services, or the sale of bait and fishing tackle; or (iii) the property contains 20 rental units <br/>
<a id="pl.53.32"></a><var>53.32</var>or less, is devoted to temporary residential occupancy, is located in a township or a city <br/>
<a id="pl.53.33"></a><var>53.33</var>that has a population of 2,500 or less, and is located outside the metropolitan area as <br/>
<a id="pl.53.34"></a><var>53.34</var>defined under section 473.121, subdivision 2. For purposes of this determination, a paid <br/>
<a id="pl.53.35"></a><var>53.35</var>booking of five or more nights shall be counted as two bookings. Class 4c also includes <br/>
<a id="pl.53.36"></a><var>53.36</var>commercial use real property used exclusively for recreational purposes in conjunction <br/>
<a id="pl.54.1"></a><var>54.1</var>with class 4c property devoted to temporary and seasonal residential occupancy for <br/>
<a id="pl.54.2"></a><var>54.2</var>recreational purposes, up to a total of two acres, provided the property is not devoted <br/>
<a id="pl.54.3"></a><var>54.3</var>to commercial recreational use for more than 250 days in the year preceding the year <br/>
<a id="pl.54.4"></a><var>54.4</var>of assessment and is located within two miles of the class 4c property with which it is <br/>
<a id="pl.54.5"></a><var>54.5</var>used. Owners of real and personal property devoted to temporary and seasonal residential <br/>
<a id="pl.54.6"></a><var>54.6</var>occupancy for recreation purposes and all or a portion of which was devoted to commercial <br/>
<a id="pl.54.7"></a><var>54.7</var>purposes for not more than 250 days in the year preceding the year of assessment desiring <br/>
<a id="pl.54.8"></a><var>54.8</var>classification as class 4c, must submit a declaration to the assessor designating the cabins <br/>
<a id="pl.54.9"></a><var>54.9</var>or units occupied for 250 days or less in the year preceding the year of assessment by <br/>
<a id="pl.54.10"></a><var>54.10</var>January 15 of the assessment year. Those cabins or units and a proportionate share of the <br/>
<a id="pl.54.11"></a><var>54.11</var>land on which they are located must be designated class 4c as otherwise provided. The <br/>
<a id="pl.54.12"></a><var>54.12</var>remainder of the cabins or units and a proportionate share of the land on which they are <br/>
<a id="pl.54.13"></a><var>54.13</var>located will be designated as class 3a. The owner of property desiring designation as class <br/>
<a id="pl.54.14"></a><var>54.14</var>4c property must provide guest registers or other records demonstrating that the units for <br/>
<a id="pl.54.15"></a><var>54.15</var>which class 4c designation is sought were not occupied for more than 250 days in the <br/>
<a id="pl.54.16"></a><var>54.16</var>year preceding the assessment if so requested. The portion of a property operated as a <br/>
<a id="pl.54.17"></a><var>54.17</var>(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other <br/>
<a id="pl.54.18"></a><var>54.18</var>nonresidential facility operated on a commercial basis not directly related to temporary <br/>
<a id="pl.54.19"></a><var>54.19</var>and seasonal residential occupancy for recreation purposes does not qualify for class 4c; <br/>
<a id="pl.54.20"></a><var>54.20</var>    (2) qualified property used as a golf course if: <br/>
<a id="pl.54.21"></a><var>54.21</var>    (i) it is open to the public on a daily fee basis. It may charge membership fees or <br/>
<a id="pl.54.22"></a><var>54.22</var>dues, but a membership fee may not be required in order to use the property for golfing, <br/>
<a id="pl.54.23"></a><var>54.23</var>and its green fees for golfing must be comparable to green fees typically charged by <br/>
<a id="pl.54.24"></a><var>54.24</var>municipal courses; and <br/>
<a id="pl.54.25"></a><var>54.25</var>    (ii) it meets the requirements of section 
         <statute_ref>273.112, subdivision 3</statute_ref>, paragraph (d). <br/>
<a id="pl.54.26"></a><var>54.26</var>    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction <br/>
<a id="pl.54.27"></a><var>54.27</var>with the golf course is classified as class 3a property; <br/>
<a id="pl.54.28"></a><var>54.28</var>    (3) real property up to a maximum of three acres of land owned and used by a <br/>
<a id="pl.54.29"></a><var>54.29</var>nonprofit community service oriented organization and that is not used for residential <br/>
<a id="pl.54.30"></a><var>54.30</var>purposes on either a temporary or permanent basis, qualifies for class 4c provided that <br/>
<a id="pl.54.31"></a><var>54.31</var>it meets either of the following: <br/>
<a id="pl.54.32"></a><var>54.32</var>    (i) the property is not used for a revenue-producing activity for more than six days <br/>
<a id="pl.54.33"></a><var>54.33</var>in the calendar year preceding the year of assessment; or <br/>
<a id="pl.54.34"></a><var>54.34</var>    (ii) the organization makes annual charitable contributions and donations at least <br/>
<a id="pl.54.35"></a><var>54.35</var>equal to the property's previous year's property taxes and the property is allowed to be <br/>
<a id="pl.55.1"></a><var>55.1</var>used for public and community meetings or events for no charge, as appropriate to the <br/>
<a id="pl.55.2"></a><var>55.2</var>size of the facility. <br/>
<a id="pl.55.3"></a><var>55.3</var>    For purposes of this clause, <br/>
<a id="pl.55.4"></a><var>55.4</var>    (A) "charitable contributions and donations" has the same meaning as lawful <br/>
<a id="pl.55.5"></a><var>55.5</var>gambling purposes under section 
         <statute_ref>349.12, subdivision 25</statute_ref>, excluding those purposes <br/>
<a id="pl.55.6"></a><var>55.6</var>relating to the payment of taxes, assessments, fees, auditing costs, and utility payments; <br/>
<a id="pl.55.7"></a><var>55.7</var>    (B) "property taxes" excludes the state general tax; <br/>
<a id="pl.55.8"></a><var>55.8</var>    (C) a "nonprofit community service oriented organization" means any corporation, <br/>
<a id="pl.55.9"></a><var>55.9</var>society, association, foundation, or institution organized and operated exclusively for <br/>
<a id="pl.55.10"></a><var>55.10</var>charitable, religious, fraternal, civic, or educational purposes, and which is exempt <br/>
<a id="pl.55.11"></a><var>55.11</var>from federal income taxation pursuant to section 501(c)(3), (10), or (19) of the Internal <br/>
<a id="pl.55.12"></a><var>55.12</var>Revenue Code; and <br/>
<a id="pl.55.13"></a><var>55.13</var>    (D) "revenue-producing activities" shall include but not be limited to property or that <br/>
<a id="pl.55.14"></a><var>55.14</var>portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt <br/>
<a id="pl.55.15"></a><var>55.15</var>liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling <br/>
<a id="pl.55.16"></a><var>55.16</var>alley, a retail store, gambling conducted by organizations licensed under chapter 349, an <br/>
<a id="pl.55.17"></a><var>55.17</var>insurance business, or office or other space leased or rented to a lessee who conducts a <br/>
<a id="pl.55.18"></a><var>55.18</var>for-profit enterprise on the premises. <br/>
<a id="pl.55.19"></a><var>55.19</var>Any portion of the property qualifying under item (i) which is used for revenue-producing <br/>
<a id="pl.55.20"></a><var>55.20</var>activities for more than six days in the calendar year preceding the year of assessment <br/>
<a id="pl.55.21"></a><var>55.21</var>shall be assessed as class 3a. The use of the property for social events open exclusively <br/>
<a id="pl.55.22"></a><var>55.22</var>to members and their guests for periods of less than 24 hours, when an admission is <br/>
<a id="pl.55.23"></a><var>55.23</var>not charged nor any revenues are received by the organization shall not be considered a <br/>
<a id="pl.55.24"></a><var>55.24</var>revenue-producing activity. <br/>
<a id="pl.55.25"></a><var>55.25</var>    The organization shall maintain records of its charitable contributions and donations <br/>
<a id="pl.55.26"></a><var>55.26</var>and of public meetings and events held on the property and make them available upon <br/>
<a id="pl.55.27"></a><var>55.27</var>request any time to the assessor to ensure eligibility. An organization meeting the <br/>
<a id="pl.55.28"></a><var>55.28</var>requirement under item (ii) must file an application by May 1 with the assessor for <br/>
<a id="pl.55.29"></a><var>55.29</var>eligibility for the current year's assessment. The commissioner shall prescribe a uniform <br/>
<a id="pl.55.30"></a><var>55.30</var>application form and instructions; <br/>
<a id="pl.55.31"></a><var>55.31</var>    (4) postsecondary student housing of not more than one acre of land that is owned by <br/>
<a id="pl.55.32"></a><var>55.32</var>a nonprofit corporation organized under chapter 317A and is used exclusively by a student <br/>
<a id="pl.55.33"></a><var>55.33</var>cooperative, sorority, or fraternity for on-campus housing or housing located within two <br/>
<a id="pl.55.34"></a><var>55.34</var>miles of the border of a college campus; <br/>
<a id="pl.55.35"></a><var>55.35</var>    (5) manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>; <br/>
<a id="pl.56.1"></a><var>56.1</var>    (6) real property that is actively and exclusively devoted to indoor fitness, health, <br/>
<a id="pl.56.2"></a><var>56.2</var>social, recreational, and related uses, is owned and operated by a not-for-profit corporation, <br/>
<a id="pl.56.3"></a><var>56.3</var>and is located within the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>; <br/>
<a id="pl.56.4"></a><var>56.4</var>    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt <br/>
<a id="pl.56.5"></a><var>56.5</var>under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that: <br/>
<a id="pl.56.6"></a><var>56.6</var>    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan <br/>
<a id="pl.56.7"></a><var>56.7</var>Airports Commission, or group thereof; and <br/>
<a id="pl.56.8"></a><var>56.8</var>    (ii) the land lease, or any ordinance or signed agreement restricting the use of the <br/>
<a id="pl.56.9"></a><var>56.9</var>leased premise, prohibits commercial activity performed at the hangar. <br/>
<a id="pl.56.10"></a><var>56.10</var>    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must <br/>
<a id="pl.56.11"></a><var>56.11</var>be filed by the new owner with the assessor of the county where the property is located <br/>
<a id="pl.56.12"></a><var>56.12</var>within 60 days of the sale; <br/>
<a id="pl.56.13"></a><var>56.13</var>    (8) a privately owned noncommercial aircraft storage hangar not exempt under <br/>
<a id="pl.56.14"></a><var>56.14</var>section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that: <br/>
<a id="pl.56.15"></a><var>56.15</var>    (i) the land abuts a public airport; and <br/>
<a id="pl.56.16"></a><var>56.16</var>    (ii) the owner of the aircraft storage hangar provides the assessor with a signed <br/>
<a id="pl.56.17"></a><var>56.17</var>agreement restricting the use of the premises, prohibiting commercial use or activity <br/>
<a id="pl.56.18"></a><var>56.18</var>performed at the hangar; and <br/>
<a id="pl.56.19"></a><var>56.19</var>    (9) residential real estate, a portion of which is used by the owner for homestead <br/>
<a id="pl.56.20"></a><var>56.20</var>purposes, and that is also a place of lodging, if all of the following criteria are met: <br/>
<a id="pl.56.21"></a><var>56.21</var>    (i) rooms are provided for rent to transient guests that generally stay for periods <br/>
<a id="pl.56.22"></a><var>56.22</var>of 14 or fewer days; <br/>
<a id="pl.56.23"></a><var>56.23</var>    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated <br/>
<a id="pl.56.24"></a><var>56.24</var>in the basic room rate; <br/>
<a id="pl.56.25"></a><var>56.25</var>    (iii) meals are not provided to the general public except for special events on fewer <br/>
<a id="pl.56.26"></a><var>56.26</var>than seven days in the calendar year preceding the year of the assessment; and <br/>
<a id="pl.56.27"></a><var>56.27</var>    (iv) the owner is the operator of the property.<br/>
<a id="pl.56.28"></a><var>56.28</var>The market value subject to the 4c classification under this clause is limited to five rental <br/>
<a id="pl.56.29"></a><var>56.29</var>units. Any rental units on the property in excess of five, must be valued and assessed as <br/>
<a id="pl.56.30"></a><var>56.30</var>class 3a. The portion of the property used for purposes of a homestead by the owner must <br/>
<a id="pl.56.31"></a><var>56.31</var>be classified as class 1a property under subdivision 22; and<br/>
<a id="pl.56.32"></a><var>56.32</var>    (10) real property up to a maximum of three acres and operated as a restaurant <br/>
<a id="pl.56.33"></a><var>56.33</var>as defined under section 
         <statute_ref>157.15, subdivision 12</statute_ref>, provided it: (A) is located on a lake <br/>
<a id="pl.56.34"></a><var>56.34</var>as defined under section 
         <statute_ref>103G.005, subdivision 15</statute_ref>, paragraph (a), clause (3); and (B) <br/>
<a id="pl.56.35"></a><var>56.35</var>is either devoted to commercial purposes for not more than 250 consecutive days, or <br/>
<a id="pl.56.36"></a><var>56.36</var>receives at least 60 percent of its annual gross receipts from business conducted during <br/>
<a id="pl.57.1"></a><var>57.1</var>four consecutive months. Gross receipts from the sale of alcoholic beverages must be <br/>
<a id="pl.57.2"></a><var>57.2</var>included in determining the property's qualification under subitem (B). The property's <br/>
<a id="pl.57.3"></a><var>57.3</var>primary business must be as a restaurant and not as a bar. Gross receipts from gift shop <br/>
<a id="pl.57.4"></a><var>57.4</var>sales located on the premises must be excluded. Owners of real property desiring 4c <br/>
<a id="pl.57.5"></a><var>57.5</var>classification under this clause must submit an annual declaration to the assessor by <br/>
<a id="pl.57.6"></a><var>57.6</var>February 1 of the current assessment year, based on the property's relevant information for <br/>
<a id="pl.57.7"></a><var>57.7</var>the preceding assessment year. <br/>
<a id="pl.57.8"></a><var>57.8</var>    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each <br/>
<a id="pl.57.9"></a><var>57.9</var>parcel of seasonal residential recreational property not used for commercial purposes has <br/>
<a id="pl.57.10"></a><var>57.10</var>the same class rates as class 4bb property, (ii) manufactured home parks assessed under <br/>
<a id="pl.57.11"></a><var>57.11</var>clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal <br/>
<a id="pl.57.12"></a><var>57.12</var>residential recreational property has a class rate of one percent for the first $500,000 of <br/>
<a id="pl.57.13"></a><var>57.13</var>market value, and 1.25 percent for the remaining market value, (iv) the market value of <br/>
<a id="pl.57.14"></a><var>57.14</var>property described in clause (4) has a class rate of one percent, (v) the market value of <br/>
<a id="pl.57.15"></a><var>57.15</var>property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi) <br/>
<a id="pl.57.16"></a><var>57.16</var>that portion of the market value of property in clause (9) qualifying for class 4c property <br/>
<a id="pl.57.17"></a><var>57.17</var>has a class rate of 1.25 percent. <br/>
<a id="pl.57.18"></a><var>57.18</var>    (e) Class 4d property is qualifying low-income rental housing certified to the assessor <br/>
<a id="pl.57.19"></a><var>57.19</var>by the Housing Finance Agency under section 
         <statute_ref>273.128, subdivision 3</statute_ref>. If only a portion <br/>
<a id="pl.57.20"></a><var>57.20</var>of the units in the building qualify as low-income rental housing units as certified under <br/>
<a id="pl.57.21"></a><var>57.21</var>section 
         <statute_ref>273.128, subdivision 3</statute_ref>, only the proportion of qualifying units to the total number <br/>
<a id="pl.57.22"></a><var>57.22</var>of units in the building qualify for class 4d. The remaining portion of the building shall be <br/>
<a id="pl.57.23"></a><var>57.23</var>classified by the assessor based upon its use. Class 4d also includes the same proportion of <br/>
<a id="pl.57.24"></a><var>57.24</var>land as the qualifying low-income rental housing units are to the total units in the building. <br/>
<a id="pl.57.25"></a><var>57.25</var>For all properties qualifying as class 4d, the market value determined by the assessor must <br/>
<a id="pl.57.26"></a><var>57.26</var>be based on the normal approach to value using normal unrestricted rents. <br/>
<a id="pl.57.27"></a><var>57.27</var>    Class 4d property has a class rate of 0.75 percent. <br/>
<a id="pl.57.28"></a><var>57.28</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2009, taxes <br/>
<a id="pl.57.29"></a><var>57.29</var>payable in 2010, and thereafter. For assessment year 2009 only, the January 15 application <br/>
<a id="pl.57.30"></a><var>57.30</var>date under paragraph (d), clause (1), shall be extended to July 1, 2009, for property <br/>
<a id="pl.57.31"></a><var>57.31</var>initially qualifying for the 2009 assessment under paragraph (d), clause (1), item (iii).<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.57.32"></a><var>57.32</var>    Sec. 9. Minnesota Statutes 2008, section 273.13, subdivision 34, is amended to read:<br/>
<a id="pl.57.33"></a><var>57.33</var>    Subd. 34.  <b>Homestead of disabled veteran.</b> (a) All or a portion of the market value <br/>
<a id="pl.57.34"></a><var>57.34</var>of property owned by a veteran or by the veteran and the veteran's spouse qualifying <br/>
<a id="pl.57.35"></a><var>57.35</var>for homestead classification under subdivision 22 or 23 is excluded in determining the <br/>
<a id="pl.58.1"></a><var>58.1</var>property's taxable market value if it serves as the homestead of a military veteran, as <br/>
<a id="pl.58.2"></a><var>58.2</var>defined in section 
         <statute_ref>197.447</statute_ref>, who has a service-connected disability of 70 percent or more. <br/>
<a id="pl.58.3"></a><var>58.3</var>To qualify for exclusion under this subdivision, the veteran must have been honorably <br/>
<a id="pl.58.4"></a><var>58.4</var>discharged from the United States armed forces, as indicated by United States Government <br/>
<a id="pl.58.5"></a><var>58.5</var>Form DD214 or other official military discharge papers, and must be certified by the <br/>
<a id="pl.58.6"></a><var>58.6</var>United States Veterans Administration as having a service-connected disability. <br/>
<a id="pl.58.7"></a><var>58.7</var>    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is <br/>
<a id="pl.58.8"></a><var>58.8</var>excluded, except as provided in clause (2); and<br/>
<a id="pl.58.9"></a><var>58.9</var>    (2) for a total (100 percent) and permanent disability, $300,000 of market value is <br/>
<a id="pl.58.10"></a><var>58.10</var>excluded.<br/>
<a id="pl.58.11"></a><var>58.11</var>    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), <br/>
<a id="pl.58.12"></a><var>58.12</var>clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the <br/>
<a id="pl.58.13"></a><var>58.13</var>spouse holds the legal or beneficial title to the homestead and permanently resides there, <br/>
<a id="pl.58.14"></a><var>58.14</var>the exclusion shall carry over to the benefit of the veteran's spouse for one five additional <br/>
<a id="pl.58.15"></a><var>58.15</var>assessment year or years or until such time as the spouse sells, transfers, or otherwise <br/>
<a id="pl.58.16"></a><var>58.16</var>disposes of the property or remarries, whichever comes first.<br/>
<a id="pl.58.17"></a><var>58.17</var>    (d) In the case of an agricultural homestead, only the portion of the property <br/>
<a id="pl.58.18"></a><var>58.18</var>consisting of the house and garage and immediately surrounding one acre of land qualifies <br/>
<a id="pl.58.19"></a><var>58.19</var>for the valuation exclusion under this subdivision.<br/>
<a id="pl.58.20"></a><var>58.20</var>    (e) A property qualifying for a valuation exclusion under this subdivision is not <br/>
<a id="pl.58.21"></a><var>58.21</var>eligible for the credit under section 
         <statute_ref>273.1384, subdivision 1</statute_ref>, or classification under <br/>
<a id="pl.58.22"></a><var>58.22</var>subdivision 22, paragraph (b).<br/>
<a id="pl.58.23"></a><var>58.23</var>    (f) To qualify for a valuation exclusion under this subdivision a property owner must <br/>
<a id="pl.58.24"></a><var>58.24</var>apply to the assessor by July 1 of each assessment year, except that an annual reapplication <br/>
<a id="pl.58.25"></a><var>58.25</var>is not required once a property has been accepted for a valuation exclusion under paragraph <br/>
<a id="pl.58.26"></a><var>58.26</var>(b), clause (2), and the property continues to qualify until there is a change in ownership.<br/>
<a id="pl.58.27"></a><var>58.27</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.58.28"></a><var>58.28</var>thereafter.<br/>
<br/>
<a id="bill.5.10.0"></a><a id="pl.58.29"></a><var>58.29</var>    Sec. 10. Minnesota Statutes 2008, section 276.04, subdivision 2, is amended to read:<br/>
<a id="pl.58.30"></a><var>58.30</var>    Subd. 2.  <b>Contents of tax statements.</b> (a) The treasurer shall provide for the <br/>
<a id="pl.58.31"></a><var>58.31</var>printing of the tax statements. The commissioner of revenue shall prescribe the form of <br/>
<a id="pl.58.32"></a><var>58.32</var>the property tax statement and its contents. The tax statement must not state or imply <br/>
<a id="pl.58.33"></a><var>58.33</var>that property tax credits are paid by the state of Minnesota. The statement must contain <br/>
<a id="pl.58.34"></a><var>58.34</var>a tabulated statement of the dollar amount due to each taxing authority and the amount <br/>
<a id="pl.58.35"></a><var>58.35</var>of the state tax from the parcel of real property for which a particular tax statement is <br/>
<a id="pl.59.1"></a><var>59.1</var>prepared. The dollar amounts attributable to the county, the state tax, the voter approved <br/>
<a id="pl.59.2"></a><var>59.2</var>school tax, the other local school tax, the township or municipality, and the total of <br/>
<a id="pl.59.3"></a><var>59.3</var>the metropolitan special taxing districts as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, <br/>
<a id="pl.59.4"></a><var>59.4</var>paragraph (i), must be separately stated. The amounts due all other special taxing districts, <br/>
<a id="pl.59.5"></a><var>59.5</var>if any, may be aggregated except that any levies made by the regional rail authorities in the <br/>
<a id="pl.59.6"></a><var>59.6</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter <br/>
<a id="pl.59.7"></a><var>59.7</var>398A shall be listed on a separate line directly under the appropriate county's levy. If the <br/>
<a id="pl.59.8"></a><var>59.8</var>county levy under this paragraph includes an amount for a lake improvement district as <br/>
<a id="pl.59.9"></a><var>59.9</var>defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose <br/>
<a id="pl.59.10"></a><var>59.10</var>must be separately stated from the remaining county levy amount. In the case of Ramsey <br/>
<a id="pl.59.11"></a><var>59.11</var>County, if the county levy under this paragraph includes an amount for public library <br/>
<a id="pl.59.12"></a><var>59.12</var>service under section 
         <statute_ref>134.07</statute_ref>, the amount attributable for that purpose may be separated <br/>
<a id="pl.59.13"></a><var>59.13</var>from the remaining county levy amount. The amount of the tax on homesteads qualifying <br/>
<a id="pl.59.14"></a><var>59.14</var>under the senior citizens' property tax deferral program under chapter 290B is the total <br/>
<a id="pl.59.15"></a><var>59.15</var>amount of property tax before subtraction of the deferred property tax amount. The <br/>
<a id="pl.59.16"></a><var>59.16</var>amount of the tax on contamination value imposed under sections 
         <statute_ref>270.91</statute_ref> to 
         <statute_ref>270.98</statute_ref>, if any, <br/>
<a id="pl.59.17"></a><var>59.17</var>must also be separately stated. The dollar amounts, including the dollar amount of any <br/>
<a id="pl.59.18"></a><var>59.18</var>special assessments, may be rounded to the nearest even whole dollar. For purposes of this <br/>
<a id="pl.59.19"></a><var>59.19</var>section whole odd-numbered dollars may be adjusted to the next higher even-numbered <br/>
<a id="pl.59.20"></a><var>59.20</var>dollar. The amount of market value excluded under section 
         <statute_ref>273.11, subdivision 16</statute_ref>, if any, <br/>
<a id="pl.59.21"></a><var>59.21</var>must also be listed on the tax statement. <br/>
<a id="pl.59.22"></a><var>59.22</var>    (b) The property tax statements for manufactured homes and sectional structures <br/>
<a id="pl.59.23"></a><var>59.23</var>taxed as personal property shall contain the same information that is required on the <br/>
<a id="pl.59.24"></a><var>59.24</var>tax statements for real property. <br/>
<a id="pl.59.25"></a><var>59.25</var>    (c) Real and personal property tax statements must contain the following information <br/>
<a id="pl.59.26"></a><var>59.26</var>in the order given in this paragraph. The information must contain the current year tax <br/>
<a id="pl.59.27"></a><var>59.27</var>information in the right column with the corresponding information for the previous year <br/>
<a id="pl.59.28"></a><var>59.28</var>in a column on the left: <br/>
<a id="pl.59.29"></a><var>59.29</var>    (1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>; <br/>
<a id="pl.59.30"></a><var>59.30</var>    (2) the property's taxable market value after reductions under section 
         <statute_ref>273.11, <br/>
<a id="pl.59.31"></a><var>59.31</var>subdivisions 1a and 16
         </statute_ref>; <br/>
<a id="pl.59.32"></a><var>59.32</var>    (3) the property's gross tax, before credits; <br/>
<a id="pl.59.33"></a><var>59.33</var>    (4) for homestead residential and agricultural properties, the credits under section <br/>
<statute_ref><a id="pl.59.34"></a><var>59.34</var>273.1384
         </statute_ref>; <br/>
<a id="pl.59.35"></a><var>59.35</var>    (5) any credits received under sections 
         <statute_ref>273.119</statute_ref>; 
         <statute_ref>273.1234</statute_ref> or 
         <statute_ref>273.1235</statute_ref>; 
         <statute_ref>273.135</statute_ref>; <br/>
<statute_ref><a id="pl.59.36"></a><var>59.36</var>273.1391
         </statute_ref>; 
         <statute_ref>273.1398, subdivision 4</statute_ref>; 
         <statute_ref>469.171</statute_ref>; and 
         <statute_ref>473H.10</statute_ref>, except that the amount of <br/>
<a id="pl.60.1"></a><var>60.1</var>credit received under section 
         <statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite <br/>
<a id="pl.60.2"></a><var>60.2</var>tax relief"; and <br/>
<a id="pl.60.3"></a><var>60.3</var>    (6) the net tax payable in the manner required in paragraph (a). <br/>
<a id="pl.60.4"></a><var>60.4</var>    (d) If the county uses envelopes for mailing property tax statements and if the county <br/>
<a id="pl.60.5"></a><var>60.5</var>agrees, a taxing district may include a notice with the property tax statement notifying <br/>
<a id="pl.60.6"></a><var>60.6</var>taxpayers when the taxing district will begin its budget deliberations for the current <br/>
<a id="pl.60.7"></a><var>60.7</var>year, and encouraging taxpayers to attend the hearings. If the county allows notices to <br/>
<a id="pl.60.8"></a><var>60.8</var>be included in the envelope containing the property tax statement, and if more than <br/>
<a id="pl.60.9"></a><var>60.9</var>one taxing district relative to a given property decides to include a notice with the tax <br/>
<a id="pl.60.10"></a><var>60.10</var>statement, the county treasurer or auditor must coordinate the process and may combine <br/>
<a id="pl.60.11"></a><var>60.11</var>the information on a single announcement. <br/>
<a id="pl.60.12"></a><var>60.12</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2011 and <br/>
<a id="pl.60.13"></a><var>60.13</var>thereafter.<br/>
<br/>
<a id="bill.5.11.0"></a><a id="pl.60.14"></a><var>60.14</var>    Sec. 11. Minnesota Statutes 2008, section 282.08, is amended to read:<br/>
<a id="pl.60.15"></a><var>60.15</var><b>282.08 APPORTIONMENT OF PROCEEDS TO TAXING DISTRICTS.</b><br/>
<a id="pl.60.16"></a><var>60.16</var>    The net proceeds from the sale or rental of any parcel of forfeited land, or from the <br/>
<a id="pl.60.17"></a><var>60.17</var>sale of products from the forfeited land, must be apportioned by the county auditor to the <br/>
<a id="pl.60.18"></a><var>60.18</var>taxing districts interested in the land, as follows:<br/>
<a id="pl.60.19"></a><var>60.19</var>    (1) the portion required to pay any amounts included in the appraised value <br/>
<a id="pl.60.20"></a><var>60.20</var>under section 
         <statute_ref>282.01, subdivision 3</statute_ref>, as representing increased value due to any public <br/>
<a id="pl.60.21"></a><var>60.21</var>improvement made after forfeiture of the parcel to the state, but not exceeding the <br/>
<a id="pl.60.22"></a><var>60.22</var>amount certified by the appropriate governmental authority must be apportioned to the <br/>
<a id="pl.60.23"></a><var>60.23</var>governmental subdivision entitled to it;<br/>
<a id="pl.60.24"></a><var>60.24</var>    (2) the portion required to pay any amount included in the appraised value under <br/>
<a id="pl.60.25"></a><var>60.25</var>section 
         <statute_ref>282.019, subdivision 5</statute_ref>, representing increased value due to response actions <br/>
<a id="pl.60.26"></a><var>60.26</var>taken after forfeiture of the parcel to the state, but not exceeding the amount of expenses <br/>
<a id="pl.60.27"></a><var>60.27</var>certified by the Pollution Control Agency or the commissioner of agriculture, must be <br/>
<a id="pl.60.28"></a><var>60.28</var>apportioned to the agency or the commissioner of agriculture and deposited in the fund <br/>
<a id="pl.60.29"></a><var>60.29</var>from which the expenses were paid;<br/>
<a id="pl.60.30"></a><var>60.30</var>    (3) the portion of the remainder required to discharge any special assessment <br/>
<a id="pl.60.31"></a><var>60.31</var>chargeable against the parcel for drainage or other purpose whether due or deferred at the <br/>
<a id="pl.60.32"></a><var>60.32</var>time of forfeiture, must be apportioned to the governmental subdivision entitled to it; and<br/>
<a id="pl.60.33"></a><var>60.33</var>    (4) any balance must be apportioned as follows:<br/>
<a id="pl.61.1"></a><var>61.1</var>    (i)(A) Except as provided in subitem (B), the county board may annually by <br/>
<a id="pl.61.2"></a><var>61.2</var>resolution set aside no more than 30 percent of the receipts remaining to be used for forest <br/>
<a id="pl.61.3"></a><var>61.3</var>development on tax-forfeited land and dedicated memorial forests, to be expended under <br/>
<a id="pl.61.4"></a><var>61.4</var>the supervision of the county board. It must be expended only on projects improving the <br/>
<a id="pl.61.5"></a><var>61.5</var>health and management of the forest resource.<br/>
<a id="pl.61.6"></a><var>61.6</var>(B) The county board is authorized to use some of the money set aside under subitem <br/>
<a id="pl.61.7"></a><var>61.7</var>(A) to replace all or a portion of the amount of aid or credit reimbursement that the county <br/>
<a id="pl.61.8"></a><var>61.8</var>was to receive under sections 273.1384 and 477A.0124, but did not receive due to aid cuts <br/>
<a id="pl.61.9"></a><var>61.9</var>or unallotment from the state. Within six months of the actual aid or credit reimbursement <br/>
<a id="pl.61.10"></a><var>61.10</var>loss, the county board may adopt a resolution transferring money from this fund to the <br/>
<a id="pl.61.11"></a><var>61.11</var>county's general fund, not to exceed the amount of aid or credit reimbursement loss to the <br/>
<a id="pl.61.12"></a><var>61.12</var>county. This subitem expires January 1, 2012.<br/>
<a id="pl.61.13"></a><var>61.13</var>    (ii) The county board may annually by resolution set aside no more than 20 percent <br/>
<a id="pl.61.14"></a><var>61.14</var>of the receipts remaining to be used for the acquisition and maintenance of county parks <br/>
<a id="pl.61.15"></a><var>61.15</var>or recreational areas as defined in sections 
         <statute_ref>398.31</statute_ref> to 
         <statute_ref>398.36</statute_ref>, to be expended under the <br/>
<a id="pl.61.16"></a><var>61.16</var>supervision of the county board.<br/>
<a id="pl.61.17"></a><var>61.17</var>    (iii) Any balance remaining must be apportioned as follows: county, 40 percent; <br/>
<a id="pl.61.18"></a><var>61.18</var>town or city, 20 percent; and school district, 40 percent, provided, however, that in <br/>
<a id="pl.61.19"></a><var>61.19</var>unorganized territory that portion which would have accrued to the township must be <br/>
<a id="pl.61.20"></a><var>61.20</var>administered by the county board of commissioners.<br/>
<a id="pl.61.21"></a><var>61.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.12.0"></a><a id="pl.61.22"></a><var>61.22</var>    Sec. 12. Minnesota Statutes 2008, section 290B.03, subdivision 1, is amended to read:<br/>
<a id="pl.61.23"></a><var>61.23</var>    Subdivision 1. <b>Program qualifications.</b> The qualifications for the senior citizens' <br/>
<a id="pl.61.24"></a><var>61.24</var>property tax deferral program are as follows:<br/>
<a id="pl.61.25"></a><var>61.25</var>(1) the property must be owned and occupied as a homestead by a person 65 years <br/>
<a id="pl.61.26"></a><var>61.26</var>of age or older. In the case of a married couple, both at least one of the spouses must <br/>
<a id="pl.61.27"></a><var>61.27</var>be at least 65 years old at the time the first property tax deferral is granted, regardless <br/>
<a id="pl.61.28"></a><var>61.28</var>of whether the property is titled in the name of one spouse or both spouses, or titled in <br/>
<a id="pl.61.29"></a><var>61.29</var>another way that permits the property to have homestead status, and the other spouse <br/>
<a id="pl.61.30"></a><var>61.30</var>must be at least 62 years of age;<br/>
<a id="pl.61.31"></a><var>61.31</var>(2) the total household income of the qualifying homeowners, as defined in section <br/>
<statute_ref><a id="pl.61.32"></a><var>61.32</var>290A.03, subdivision 5
         </statute_ref>, for the calendar year preceding the year of the initial application <br/>
<a id="pl.61.33"></a><var>61.33</var>may not exceed $60,000 $75,000;<br/>
<a id="pl.62.1"></a><var>62.1</var>(3) the homestead must have been owned and occupied as the homestead of at <br/>
<a id="pl.62.2"></a><var>62.2</var>least one of the qualifying homeowners for at least 15 ten years prior to the year the <br/>
<a id="pl.62.3"></a><var>62.3</var>initial application is filed;<br/>
<a id="pl.62.4"></a><var>62.4</var>(4) there are no state or federal tax liens or judgment liens on the homesteaded <br/>
<a id="pl.62.5"></a><var>62.5</var>property;<br/>
<a id="pl.62.6"></a><var>62.6</var>(5) there are no mortgages or other liens on the property that secure future advances, <br/>
<a id="pl.62.7"></a><var>62.7</var>except for those subject to credit limits that result in compliance with clause (6); and<br/>
<a id="pl.62.8"></a><var>62.8</var>(6) the total unpaid balances of debts secured by mortgages and other liens on the <br/>
<a id="pl.62.9"></a><var>62.9</var>property, including unpaid and delinquent special assessments and interest and any <br/>
<a id="pl.62.10"></a><var>62.10</var>delinquent property taxes, penalties, and interest, but not including property taxes payable <br/>
<a id="pl.62.11"></a><var>62.11</var>during the year, does not exceed 75 percent of the assessor's estimated market value for <br/>
<a id="pl.62.12"></a><var>62.12</var>the year.<br/>
<a id="pl.62.13"></a><var>62.13</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009, and thereafter.<br/>
<br/>
<a id="bill.5.13.0"></a><a id="pl.62.14"></a><var>62.14</var>    Sec. 13. Minnesota Statutes 2008, section 290B.04, subdivision 3, is amended to read:<br/>
<a id="pl.62.15"></a><var>62.15</var>    Subd. 3. <b>Excess-income certification by taxpayer.</b> A taxpayer whose initial <br/>
<a id="pl.62.16"></a><var>62.16</var>application has been approved under subdivision 2 shall notify the commissioner of <br/>
<a id="pl.62.17"></a><var>62.17</var>revenue in writing by July 1 if the taxpayer's household income for the preceding calendar <br/>
<a id="pl.62.18"></a><var>62.18</var>year exceeded $60,000 $75,000. The certification must state the homeowner's total <br/>
<a id="pl.62.19"></a><var>62.19</var>household income for the previous calendar year. No property taxes may be deferred <br/>
<a id="pl.62.20"></a><var>62.20</var>under this chapter in any year following the year in which a program participant filed <br/>
<a id="pl.62.21"></a><var>62.21</var>or should have filed an excess-income certification under this subdivision, unless the <br/>
<a id="pl.62.22"></a><var>62.22</var>participant has filed a resumption of eligibility certification as described in subdivision 4.<br/>
<a id="pl.62.23"></a><var>62.23</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009, and thereafter.<br/>
<br/>
<a id="bill.5.14.0"></a><a id="pl.62.24"></a><var>62.24</var>    Sec. 14. Minnesota Statutes 2008, section 290B.04, subdivision 4, is amended to read:<br/>
<a id="pl.62.25"></a><var>62.25</var>    Subd. 4. <b>Resumption of eligibility certification by taxpayer.</b> A taxpayer who has <br/>
<a id="pl.62.26"></a><var>62.26</var>previously filed an excess-income certification under subdivision 3 may resume program <br/>
<a id="pl.62.27"></a><var>62.27</var>participation if the taxpayer's household income for a subsequent year is $60,000 $75,000 <br/>
<a id="pl.62.28"></a><var>62.28</var>or less. If the taxpayer chooses to resume program participation, the taxpayer must notify <br/>
<a id="pl.62.29"></a><var>62.29</var>the commissioner of revenue in writing by July 1 of the year following a calendar year in <br/>
<a id="pl.62.30"></a><var>62.30</var>which the taxpayer's household income is $60,000 $75,000 or less. The certification must <br/>
<a id="pl.62.31"></a><var>62.31</var>state the taxpayer's total household income for the previous calendar year. Once a taxpayer <br/>
<a id="pl.62.32"></a><var>62.32</var>resumes participation in the program under this subdivision, participation will continue <br/>
<a id="pl.63.1"></a><var>63.1</var>until the taxpayer files a subsequent excess-income certification under subdivision 3 or <br/>
<a id="pl.63.2"></a><var>63.2</var>until participation is terminated under section 
         <statute_ref>290B.08, subdivision 1</statute_ref>.<br/>
<a id="pl.63.3"></a><var>63.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009, and thereafter.<br/>
<br/>
<a id="bill.5.15.0"></a><a id="pl.63.4"></a><var>63.4</var>    Sec. 15. Minnesota Statutes 2008, section 290B.05, subdivision 1, is amended to read:<br/>
<a id="pl.63.5"></a><var>63.5</var>    Subdivision 1. <b>Determination by commissioner.</b> The commissioner shall <br/>
<a id="pl.63.6"></a><var>63.6</var>determine each qualifying homeowner's "annual maximum property tax amount" <br/>
<a id="pl.63.7"></a><var>63.7</var>following approval of the homeowner's initial application and following the receipt of a <br/>
<a id="pl.63.8"></a><var>63.8</var>resumption of eligibility certification. The "annual maximum property tax amount" equals <br/>
<a id="pl.63.9"></a><var>63.9</var>three percent of the homeowner's total household income for the year preceding either the <br/>
<a id="pl.63.10"></a><var>63.10</var>initial application or the resumption of eligibility certification, whichever is applicable. <br/>
<a id="pl.63.11"></a><var>63.11</var>Following approval of the initial application, the commissioner shall determine the <br/>
<a id="pl.63.12"></a><var>63.12</var>qualifying homeowner's "maximum allowable deferral." No tax may be deferred relative <br/>
<a id="pl.63.13"></a><var>63.13</var>to the appropriate assessment year for any homeowner whose total household income <br/>
<a id="pl.63.14"></a><var>63.14</var>for the previous year exceeds $60,000 $75,000. No tax shall be deferred in any year in <br/>
<a id="pl.63.15"></a><var>63.15</var>which the homeowner does not meet the program qualifications in section 
         <statute_ref>290B.03</statute_ref>. The <br/>
<a id="pl.63.16"></a><var>63.16</var>maximum allowable total deferral is equal to 75 percent of the assessor's estimated market <br/>
<a id="pl.63.17"></a><var>63.17</var>value for the year, less the balance of any mortgage loans and other amounts secured by <br/>
<a id="pl.63.18"></a><var>63.18</var>liens against the property at the time of application, including any unpaid and delinquent <br/>
<a id="pl.63.19"></a><var>63.19</var>special assessments and interest and any delinquent property taxes, penalties, and interest, <br/>
<a id="pl.63.20"></a><var>63.20</var>but not including property taxes payable during the year.<br/>
<a id="pl.63.21"></a><var>63.21</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009, and thereafter.<br/>
<br/>
<a id="bill.5.16.0"></a><a id="pl.63.22"></a><var>63.22</var>    Sec. 16. Minnesota Statutes 2008, section 290B.07, is amended to read:<br/>
<a id="pl.63.23"></a><var>63.23</var><b>290B.07 LIEN; DEFERRED PORTION.</b><br/>
<a id="pl.63.24"></a><var>63.24</var>(a) Payment by the state to the county treasurer of property taxes, penalties, interest, <br/>
<a id="pl.63.25"></a><var>63.25</var>or special assessments and interest deferred under this chapter is deemed a loan from the <br/>
<a id="pl.63.26"></a><var>63.26</var>state to the program participant. The commissioner must compute the interest as provided <br/>
<a id="pl.63.27"></a><var>63.27</var>in section 
         <statute_ref>270C.40, subdivision 5</statute_ref>, but not to exceed five three percent, and maintain <br/>
<a id="pl.63.28"></a><var>63.28</var>records of the total deferred amount and interest for each participant. Interest shall accrue <br/>
<a id="pl.63.29"></a><var>63.29</var>beginning September 1 of the payable year for which the taxes are deferred. Any deferral <br/>
<a id="pl.63.30"></a><var>63.30</var>made under this chapter shall not be construed as delinquent property taxes.<br/>
<a id="pl.63.31"></a><var>63.31</var>The lien created under section 
         <statute_ref>272.31</statute_ref> continues to secure payment by the taxpayer, <br/>
<a id="pl.63.32"></a><var>63.32</var>or by the taxpayer's successors or assigns, of the amount deferred, including interest, with <br/>
<a id="pl.63.33"></a><var>63.33</var>respect to all years for which amounts are deferred. The lien for deferred taxes and interest <br/>
<a id="pl.64.1"></a><var>64.1</var>has the same priority as any other lien under section 
         <statute_ref>272.31</statute_ref>, except that liens, including <br/>
<a id="pl.64.2"></a><var>64.2</var>mortgages, recorded or filed prior to the recording or filing of the notice under section <br/>
<statute_ref><a id="pl.64.3"></a><var>64.3</var>290B.04, subdivision 2
         </statute_ref>, have priority over the lien for deferred taxes and interest. A <br/>
<a id="pl.64.4"></a><var>64.4</var>seller's interest in a contract for deed, in which a qualifying homeowner is the purchaser <br/>
<a id="pl.64.5"></a><var>64.5</var>or an assignee of the purchaser, has priority over deferred taxes and interest on deferred <br/>
<a id="pl.64.6"></a><var>64.6</var>taxes, regardless of whether the contract for deed is recorded or filed. The lien for deferred <br/>
<a id="pl.64.7"></a><var>64.7</var>taxes and interest for future years has the same priority as the lien for deferred taxes and <br/>
<a id="pl.64.8"></a><var>64.8</var>interest for the first year, which is always higher in priority than any mortgages or other <br/>
<a id="pl.64.9"></a><var>64.9</var>liens filed, recorded, or created after the notice recorded or filed under section 
         <statute_ref>290B.04, <br/>
<a id="pl.64.10"></a><var>64.10</var>subdivision 2
         </statute_ref>. The county treasurer or auditor shall maintain records of the deferred <br/>
<a id="pl.64.11"></a><var>64.11</var>portion and shall list the amount of deferred taxes for the year and the cumulative deferral <br/>
<a id="pl.64.12"></a><var>64.12</var>and interest for all previous years as a lien against the property. In any certification of <br/>
<a id="pl.64.13"></a><var>64.13</var>unpaid taxes for a tax parcel, the county auditor shall clearly distinguish between taxes <br/>
<a id="pl.64.14"></a><var>64.14</var>payable in the current year, deferred taxes and interest, and delinquent taxes. Payment <br/>
<a id="pl.64.15"></a><var>64.15</var>of the deferred portion becomes due and owing at the time specified in section 
         <statute_ref>290B.08</statute_ref>. <br/>
<a id="pl.64.16"></a><var>64.16</var>Upon receipt of the payment, the commissioner shall issue a receipt for it to the person <br/>
<a id="pl.64.17"></a><var>64.17</var>making the payment upon request and shall notify the auditor of the county in which the <br/>
<a id="pl.64.18"></a><var>64.18</var>parcel is located, within ten days, identifying the parcel to which the payment applies. <br/>
<a id="pl.64.19"></a><var>64.19</var>Upon receipt by the commissioner of revenue of collected funds in the amount of the <br/>
<a id="pl.64.20"></a><var>64.20</var>deferral, the state's loan to the program participant is deemed paid in full.<br/>
<a id="pl.64.21"></a><var>64.21</var>(b) If property for which taxes have been deferred under this chapter forfeits <br/>
<a id="pl.64.22"></a><var>64.22</var>under chapter 281 for nonpayment of a nondeferred property tax amount, or because <br/>
<a id="pl.64.23"></a><var>64.23</var>of nonpayment of amounts previously deferred following a termination under section <br/>
<statute_ref><a id="pl.64.24"></a><var>64.24</var>290B.08
         </statute_ref>, the lien for the taxes deferred under this chapter, plus interest and costs, shall be <br/>
<a id="pl.64.25"></a><var>64.25</var>canceled by the county auditor as provided in section 
         <statute_ref>282.07</statute_ref>. However, notwithstanding <br/>
<a id="pl.64.26"></a><var>64.26</var>any other law to the contrary, any proceeds from a subsequent sale of the property under <br/>
<a id="pl.64.27"></a><var>64.27</var>chapter 282 or another law, must be used to first reimburse the county's forfeited tax sale <br/>
<a id="pl.64.28"></a><var>64.28</var>fund for any direct costs of selling the property or any costs directly related to preparing <br/>
<a id="pl.64.29"></a><var>64.29</var>the property for sale, and then to reimburse the state for the amount of the canceled <br/>
<a id="pl.64.30"></a><var>64.30</var>lien. Within 90 days of the receipt of any sale proceeds to which the state is entitled <br/>
<a id="pl.64.31"></a><var>64.31</var>under these provisions, the county auditor must pay those funds to the commissioner of <br/>
<a id="pl.64.32"></a><var>64.32</var>revenue by warrant for deposit in the general fund. No other deposit, use, distribution, <br/>
<a id="pl.64.33"></a><var>64.33</var>or release of gross sale proceeds or receipts may be made by the county until payments <br/>
<a id="pl.64.34"></a><var>64.34</var>sufficient to fully reimburse the state for the canceled lien amount have been transmitted <br/>
<a id="pl.64.35"></a><var>64.35</var>to the commissioner.<br/>
<a id="pl.64.36"></a><var>64.36</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009, and thereafter.<br/>
<br/>
<a id="bill.5.17.0"></a><a id="pl.65.1"></a><var>65.1</var>    Sec. 17. Minnesota Statutes 2008, section 290C.07, is amended to read:<br/>
<a id="pl.65.2"></a><var>65.2</var><b>290C.07 CALCULATION OF INCENTIVE PAYMENT. </b><br/>
<a id="pl.65.3"></a><var>65.3</var>    An approved claimant under the sustainable forest incentive program is eligible to <br/>
<a id="pl.65.4"></a><var>65.4</var>receive an annual payment. The payment shall equal the greater of: <br/>
<a id="pl.65.5"></a><var>65.5</var>    (1) the difference between the property tax that would be paid on the land using the <br/>
<a id="pl.65.6"></a><var>65.6</var>previous year's statewide average total township tax rate and the class rate for class 2b <br/>
<a id="pl.65.7"></a><var>65.7</var>timberland under section 
         <statute_ref>273.13, subdivision 23</statute_ref>, paragraph (b), if the land were valued <br/>
<a id="pl.65.8"></a><var>65.8</var>at (i) the average statewide timberland market value per acre calculated under section <br/>
<statute_ref><a id="pl.65.9"></a><var>65.9</var>290C.06
         </statute_ref>, and (ii) the average statewide timberland current use value per acre calculated <br/>
<a id="pl.65.10"></a><var>65.10</var>under section 
         <statute_ref>290C.02, subdivision 5</statute_ref>; or <br/>
<a id="pl.65.11"></a><var>65.11</var>    (2) two-thirds of the property tax amount determined by using the previous year's <br/>
<a id="pl.65.12"></a><var>65.12</var>statewide average total township tax rate, the estimated market value per acre as calculated <br/>
<a id="pl.65.13"></a><var>65.13</var>in section 
         <statute_ref>290C.06</statute_ref>, and the class rate for 2b timberland under section 
         <statute_ref>273.13, subdivision <br/>
<a id="pl.65.14"></a><var>65.14</var>23
         </statute_ref>, paragraph (b), provided that the payment shall be no less greater than $7 $6 per acre <br/>
<a id="pl.65.15"></a><var>65.15</var>for each acre enrolled in the sustainable forest incentive program and the maximum annual <br/>
<a id="pl.65.16"></a><var>65.16</var>payment per claimant shall be $400,000. <br/>
<a id="pl.65.17"></a><var>65.17</var><b>EFFECTIVE DATE.</b>This section is effective for payments made in 2010 and <br/>
<a id="pl.65.18"></a><var>65.18</var>thereafter.<br/>
<br/>
<a id="bill.5.18.0"></a><a id="pl.65.19"></a><var>65.19</var>    Sec. 18. Minnesota Statutes 2008, section 428A.21, is amended to read:<br/>
<a id="pl.65.20"></a><var>65.20</var><b>428A.21 DEADLINE FOR HOUSING IMPROVEMENT DISTRICTS UNDER </b><br/>
<a id="pl.65.21"></a><var>65.21</var><b>GENERAL LAW.</b><br/>
<a id="pl.65.22"></a><var>65.22</var>The establishment of a new housing improvement area after June 30, 2009 2012, <br/>
<a id="pl.65.23"></a><var>65.23</var>requires enactment of a special law authorizing the establishment of the area.<br/>
<a id="pl.65.24"></a><var>65.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.19.0"></a><a id="pl.65.25"></a><var>65.25</var>    Sec. 19. Laws 2001, First Special Session chapter 5, article 3, section 8, the effective <br/>
<a id="pl.65.26"></a><var>65.26</var>date, as amended by Laws 2005, chapter 151, article 3, section 19, and Laws 2006, chapter <br/>
<a id="pl.65.27"></a><var>65.27</var>259, article 4, section 20, is amended to read:<br/>
<a id="pl.65.28"></a><var>65.28</var>    <b>EFFECTIVE DATE.</b> This section is effective for taxes levied in 2002, payable in <br/>
<a id="pl.65.29"></a><var>65.29</var>2003, through taxes levied in 2011 2014, payable in 2012 2015. <br/>
<br/>
<a id="bill.5.20.0"></a><a id="pl.65.30"></a><var>65.30</var>    Sec. 20. Laws 2008, chapter 366, article 6, section 9, the effective date, is amended to <br/>
<a id="pl.65.31"></a><var>65.31</var>read:<br/>
<a id="pl.66.1"></a><var>66.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.66.2"></a><var>66.2</var>thereafter, on land platted after May 18, 2008.<br/>
<br/>
<a id="bill.5.21.0"></a><a id="pl.66.3"></a><var>66.3</var>    Sec. 21. Laws 2008, chapter 366, article 6, section 10, the effective date, is amended to <br/>
<a id="pl.66.4"></a><var>66.4</var>read:<br/>
<a id="pl.66.5"></a><var>66.5</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.66.6"></a><var>66.6</var>thereafter, on land platted after May 18, 2008.<br/>
<br/>
<a id="bill.5.22.0"></a><a id="pl.66.7"></a><var>66.7</var>    Sec. 22. <b>FISCAL DISPARITIES STUDY.</b><br/>
<a id="pl.66.8"></a><var>66.8</var>    Subdivision 1. <b>Study required.</b> The commissioner of revenue must conduct a study <br/>
<a id="pl.66.9"></a><var>66.9</var>of the metropolitan revenue distribution program contained in Minnesota Statutes, chapter <br/>
<a id="pl.66.10"></a><var>66.10</var>473F, commonly known as the fiscal disparities program. On or before February 1, 2010, <br/>
<a id="pl.66.11"></a><var>66.11</var>the commissioner shall make a report to the chairs of the house of representatives and <br/>
<a id="pl.66.12"></a><var>66.12</var>senate tax committees consisting of the findings of the study and any recommendations <br/>
<a id="pl.66.13"></a><var>66.13</var>resulting from the study.<br/>
<a id="pl.66.14"></a><var>66.14</var>The study shall consider to what extent the program is meeting the following goals, <br/>
<a id="pl.66.15"></a><var>66.15</var>and what changes could be made to the program in the furtherance of meeting those goals:<br/>
<a id="pl.66.16"></a><var>66.16</var>(1) reducing the extent to which the property tax encourages development patterns <br/>
<a id="pl.66.17"></a><var>66.17</var>that do not make cost-effective use of public infrastructure or impose other high public <br/>
<a id="pl.66.18"></a><var>66.18</var>costs;<br/>
<a id="pl.66.19"></a><var>66.19</var>(2) ensuring that the benefits of economic growth of the region are shared throughout <br/>
<a id="pl.66.20"></a><var>66.20</var>the region, especially for growth that results from state or regional decisions;<br/>
<a id="pl.66.21"></a><var>66.21</var>(3) improving the ability of each jurisdiction within the region to deliver services at <br/>
<a id="pl.66.22"></a><var>66.22</var>a level commensurate with its tax effort;<br/>
<a id="pl.66.23"></a><var>66.23</var>(4) compensating jurisdictions containing properties that provide regional benefits <br/>
<a id="pl.66.24"></a><var>66.24</var>for the costs those properties impose on their host jurisdictions in excess of their tax <br/>
<a id="pl.66.25"></a><var>66.25</var>payments;<br/>
<a id="pl.66.26"></a><var>66.26</var>(5) promoting a fair distribution of property tax burdens across jurisdictions of <br/>
<a id="pl.66.27"></a><var>66.27</var>the region; and<br/>
<a id="pl.66.28"></a><var>66.28</var>(6) reducing the economic losses that result from competition among communities <br/>
<a id="pl.66.29"></a><var>66.29</var>for commercial-industrial tax base.<br/>
<a id="pl.66.30"></a><var>66.30</var>    Subd. 2. <b>Appropriation.</b> $50,000 is appropriated to the commissioner of revenue <br/>
<a id="pl.66.31"></a><var>66.31</var>from the general fund in fiscal year 2010 to conduct the study required under subdivision 1.<br/>
<a id="pl.66.32"></a><var>66.32</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.67.3"></a><var>67.3</var>    Section 1. Minnesota Statutes 2008, section 273.1384, subdivision 1, is amended to <br/>
<a id="pl.67.4"></a><var>67.4</var>read:<br/>
<a id="pl.67.5"></a><var>67.5</var>    Subdivision 1. <b>Residential homestead market value credit.</b> Each county auditor <br/>
<a id="pl.67.6"></a><var>67.6</var>shall determine a homestead credit for each class 1a, 1b, and 2a homestead property <br/>
<a id="pl.67.7"></a><var>67.7</var>within the county equal to 0.4 percent of the first $76,000 $75,000 of market value of <br/>
<a id="pl.67.8"></a><var>67.8</var>the property minus .09 0.1 percent of the market value in excess of $76,000 $75,000. <br/>
<a id="pl.67.9"></a><var>67.9</var>The credit amount may not be less than zero. In the case of an agricultural or resort <br/>
<a id="pl.67.10"></a><var>67.10</var>homestead, only the market value of the house, garage, and immediately surrounding one <br/>
<a id="pl.67.11"></a><var>67.11</var>acre of land is eligible in determining the property's homestead credit. In the case of a <br/>
<a id="pl.67.12"></a><var>67.12</var>property that is classified as part homestead and part nonhomestead, (i) the credit shall <br/>
<a id="pl.67.13"></a><var>67.13</var>apply only to the homestead portion of the property, but (ii) if a portion of a property is <br/>
<a id="pl.67.14"></a><var>67.14</var>classified as nonhomestead solely because not all the owners occupy the property, not all <br/>
<a id="pl.67.15"></a><var>67.15</var>the owners have qualifying relatives occupying the property, or solely because not all the <br/>
<a id="pl.67.16"></a><var>67.16</var>spouses of owners occupy the property, the credit amount shall be initially computed as <br/>
<a id="pl.67.17"></a><var>67.17</var>if that nonhomestead portion were also in the homestead class and then prorated to the <br/>
<a id="pl.67.18"></a><var>67.18</var>owner-occupant's percentage of ownership. For the purpose of this section, when an <br/>
<a id="pl.67.19"></a><var>67.19</var>owner-occupant's spouse does not occupy the property, the percentage of ownership for <br/>
<a id="pl.67.20"></a><var>67.20</var>the owner-occupant spouse is one-half of the couple's ownership percentage.<br/>
<a id="pl.67.21"></a><var>67.21</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.67.22"></a><var>67.22</var>thereafter.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.67.23"></a><var>67.23</var>    Sec. 2. Minnesota Statutes 2008, section 273.1384, subdivision 4, is amended to read:<br/>
<a id="pl.67.24"></a><var>67.24</var>    Subd. 4. <b>Payment.</b> (a) The commissioner of revenue shall reimburse each local <br/>
<a id="pl.67.25"></a><var>67.25</var>taxing jurisdiction, other than school districts, for the tax reductions granted under this <br/>
<a id="pl.67.26"></a><var>67.26</var>section in two equal installments on October 31 and December 26 of the taxes payable <br/>
<a id="pl.67.27"></a><var>67.27</var>year for which the reductions are granted, including in each payment the prior year <br/>
<a id="pl.67.28"></a><var>67.28</var>adjustments certified on the abstracts for that taxes payable year. The reimbursements <br/>
<a id="pl.67.29"></a><var>67.29</var>related to tax increments shall be issued in one installment each year on December 26.<br/>
<a id="pl.67.30"></a><var>67.30</var>(b) The commissioner of revenue shall certify the total of the tax reductions <br/>
<a id="pl.67.31"></a><var>67.31</var>granted under this section for each taxes payable year within each school district to the <br/>
<a id="pl.67.32"></a><var>67.32</var>commissioner of the Department of Education and the commissioner of education shall <br/>
<a id="pl.67.33"></a><var>67.33</var>pay the reimbursement amounts to each school district as provided in section 
         <statute_ref>273.1392</statute_ref>. <br/>
<a id="pl.68.1"></a><var>68.1</var>(c) The market value credit reimbursements payable in 2011 and 2012 for each city <br/>
<a id="pl.68.2"></a><var>68.2</var>under this section are reduced by the dollar amount of the 2010 reduction in market value <br/>
<a id="pl.68.3"></a><var>68.3</var>credit reimbursements under section 477A.013, subdivision 11. The payable market value <br/>
<a id="pl.68.4"></a><var>68.4</var>credit reimbursement for a city is not reduced less than zero under this paragraph.<br/>
<a id="pl.68.5"></a><var>68.5</var><b>EFFECTIVE DATE.</b>This section is effective for credits payable in calendar year <br/>
<a id="pl.68.6"></a><var>68.6</var>2011 and thereafter.<br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.68.7"></a><var>68.7</var>    Sec. 3. Minnesota Statutes 2008, section 275.08, subdivision 1d, is amended to read:<br/>
<a id="pl.68.8"></a><var>68.8</var>    Subd. 1d. <b>Additional adjustment.</b> If, after computing each local government's <br/>
<a id="pl.68.9"></a><var>68.9</var>adjusted local tax rate within a unique taxing jurisdiction pursuant to subdivision 1c, the <br/>
<a id="pl.68.10"></a><var>68.10</var>auditor finds that the total adjusted local tax rate of all local governments combined is less <br/>
<a id="pl.68.11"></a><var>68.11</var>than 90 percent of gross tax capacity for taxes payable in 1989 and 90 113 percent of net <br/>
<a id="pl.68.12"></a><var>68.12</var>tax capacity for taxes payable in 1990 and thereafter, the auditor shall increase each local <br/>
<a id="pl.68.13"></a><var>68.13</var>government's adjusted local tax rate proportionately so the total adjusted local tax rate of <br/>
<a id="pl.68.14"></a><var>68.14</var>all local governments combined equals 90 113  percent. The total amount of the increase in <br/>
<a id="pl.68.15"></a><var>68.15</var>tax resulting from the increased local tax rates must not exceed the amount of disparity <br/>
<a id="pl.68.16"></a><var>68.16</var>aid allocated to the unique taxing district under section 
         <statute_ref>273.1398</statute_ref>. The auditor shall <br/>
<a id="pl.68.17"></a><var>68.17</var>certify to the Department of Revenue the difference between the disparity aid originally <br/>
<a id="pl.68.18"></a><var>68.18</var>allocated under section 
         <statute_ref>273.1398, subdivision 3</statute_ref>, and the amount necessary to reduce <br/>
<a id="pl.68.19"></a><var>68.19</var>the total adjusted local tax rate of all local governments combined to 90 percent. Each <br/>
<a id="pl.68.20"></a><var>68.20</var>local government's disparity reduction aid payment under section 
         <statute_ref>273.1398, subdivision <br/>
<a id="pl.68.21"></a><var>68.21</var>6
         </statute_ref>, must be reduced accordingly.  <br/>
<a id="pl.68.22"></a><var>68.22</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.68.23"></a><var>68.23</var>thereafter.<br/>
<br/>
<a id="bill.6.4.0"></a><a id="pl.68.24"></a><var>68.24</var>    Sec. 4. Minnesota Statutes 2008, section 290A.04, subdivision 2, is amended to read:<br/>
<a id="pl.68.25"></a><var>68.25</var>    Subd. 2. <b>Homeowners.</b> A claimant whose property taxes payable are in excess <br/>
<a id="pl.68.26"></a><var>68.26</var>of the percentage of the household income stated below shall pay an amount equal to <br/>
<a id="pl.68.27"></a><var>68.27</var>the percent of income shown for the appropriate household income level along with the <br/>
<a id="pl.68.28"></a><var>68.28</var>percent to be paid by the claimant of the remaining amount of property taxes payable. <br/>
<a id="pl.68.29"></a><var>68.29</var>The state refund equals the amount of property taxes payable that remain, up to the state <br/>
<a id="pl.68.30"></a><var>68.30</var>refund amount shown below.<br/>
<table>
<col width="50px"/>
<col width="15"/>
<col width="3"/>
<col width="15"/>
<col width="14.5"/>
<col width="2.5"/>
<col width="10"/>
<col width="5"/>
<tr>
<td><a id="pl.68.31"></a><var>68.31</var><br/>
<a id="pl.68.32"></a><var>68.32</var><br/>
</td>
<td align="center" colspan="2">Household Income<br/>
</td>
<td align="center">Percent of Income<br/>
</td>
<td align="center">Percent Paid by <br/>
                  		Claimant<br/>
</td>
<td align="center" colspan="3">Maximum State<br/>
                  		Refund<br/>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.68.33"></a><var>68.33</var><br/>
</td>
<td align="right">$0 to 1,189<br/>
</td>
<td></td>
<td align="center">1.0 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,8502,040<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.1"></a><var>69.1</var><br/>
</td>
<td align="right">1,190 to 2,379<br/>
</td>
<td></td>
<td align="center">1.1 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,8502,040<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.2"></a><var>69.2</var><br/>
</td>
<td align="right">2,380 to 3,589<br/>
</td>
<td></td>
<td align="center">1.2 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,8001,980<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.3"></a><var>69.3</var><br/>
</td>
<td align="right">3,590 to 4,789<br/>
</td>
<td></td>
<td align="center">1.3 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,8001,980<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.4"></a><var>69.4</var><br/>
</td>
<td align="right">4,790 to 5,979<br/>
</td>
<td></td>
<td align="center">1.4 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,7301,900<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.5"></a><var>69.5</var><br/>
</td>
<td align="right">5,980 to 8,369<br/>
</td>
<td></td>
<td align="center">1.5 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,7301,900<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.6"></a><var>69.6</var><br/>
</td>
<td align="right">8,370 to 9,559<br/>
</td>
<td></td>
<td align="center">1.6 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,6701,840<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.7"></a><var>69.7</var><br/>
</td>
<td align="right">9,560 to 10,759<br/>
</td>
<td></td>
<td align="center">1.7 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,6701,840<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.8"></a><var>69.8</var><br/>
</td>
<td align="right">10,760 to 11,949<br/>
</td>
<td></td>
<td align="center">1.8 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,6101,770<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.9"></a><var>69.9</var><br/>
</td>
<td align="right">11,950 to 13,139<br/>
</td>
<td></td>
<td align="center">1.9 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,6101,770<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.10"></a><var>69.10</var><br/>
</td>
<td align="right">13,140 to 14,349<br/>
</td>
<td></td>
<td align="center">2.0 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,5401,690<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.11"></a><var>69.11</var><br/>
</td>
<td align="right">14,350 to 16,739<br/>
</td>
<td></td>
<td align="center">2.12.0 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,5401,690<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.12"></a><var>69.12</var><br/>
</td>
<td align="right">16,740 to 17,929<br/>
</td>
<td></td>
<td align="center">2.2 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,480<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.13"></a><var>69.13</var><br/>
</td>
<td align="right">17,930 to 19,119<br/>
</td>
<td></td>
<td align="center">2.32.0 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,4801,630<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.14"></a><var>69.14</var><br/>
</td>
<td align="right">19,120 to 20,319<br/>
</td>
<td></td>
<td align="center">2.42.1 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,4201,560<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.15"></a><var>69.15</var><br/>
</td>
<td align="right">20,320 to 25,099<br/>
</td>
<td></td>
<td align="center">2.52.2 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,4201,560<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.16"></a><var>69.16</var><br/>
</td>
<td align="right">25,100 to 28,679<br/>
</td>
<td></td>
<td align="center">2.62.3 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,3601,500<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.17"></a><var>69.17</var><br/>
</td>
<td align="right">28,680 to 35,849<br/>
</td>
<td></td>
<td align="center">2.72.5 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,3601,500<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.18"></a><var>69.18</var><br/>
</td>
<td align="right">35,850 to 41,819<br/>
</td>
<td></td>
<td align="center">2.82.6 percent<br/>
</td>
<td align="center">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,2401,360<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.19"></a><var>69.19</var><br/>
</td>
<td align="right">41,820 to 47,799<br/>
</td>
<td></td>
<td align="center">3.02.8 percent<br/>
</td>
<td align="center">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,2401,360<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.20"></a><var>69.20</var><br/>
</td>
<td align="right">47,800 to 53,779<br/>
</td>
<td></td>
<td align="center">3.23.0 percent<br/>
</td>
<td align="center">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,1101,220<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.21"></a><var>69.21</var><br/>
</td>
<td align="right">53,780 to 59,749<br/>
</td>
<td></td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">9901,090<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.22"></a><var>69.22</var><br/>
</td>
<td align="right">59,750 to 65,729<br/>
</td>
<td></td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">870960<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.23"></a><var>69.23</var><br/>
</td>
<td align="right">65,730 to 69,319<br/>
</td>
<td></td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">740810<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.24"></a><var>69.24</var><br/>
</td>
<td align="right">69,320 to 71,719<br/>
</td>
<td></td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">610670<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.25"></a><var>69.25</var><br/>
</td>
<td align="right">71,720 to 74,619<br/>
</td>
<td></td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">500550<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.69.26"></a><var>69.26</var><br/>
</td>
<td align="right">74,620 to 77,519<br/>
</td>
<td></td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">370410<br/>
</td>
<td></td>
</tr>
</table><a id="pl.69.27"></a><var>69.27</var>    The payment made to a claimant shall be the amount of the state refund calculated <br/>
<a id="pl.69.28"></a><var>69.28</var>under this subdivision. No payment is allowed if the claimant's household income is <br/>
<a id="pl.69.29"></a><var>69.29</var>$77,520 or more.<br/>
<a id="pl.69.30"></a><var>69.30</var><b>EFFECTIVE DATE.</b>This section is effective beginning with refunds based on <br/>
<a id="pl.69.31"></a><var>69.31</var>property taxes payable in 2010.<br/>
<br/>
<a id="bill.6.5.0"></a><a id="pl.69.32"></a><var>69.32</var>    Sec. 5. Minnesota Statutes 2008, section 477A.011, subdivision 36, is amended to read:<br/>
<a id="pl.69.33"></a><var>69.33</var>    Subd. 36.  <b>City aid base.</b> (a) Except as otherwise provided in this subdivision, <br/>
<a id="pl.69.34"></a><var>69.34</var>"city aid base" is zero. <br/>
<a id="pl.69.35"></a><var>69.35</var>    (b) The city aid base for any city with a population less than 500 is increased by <br/>
<a id="pl.69.36"></a><var>69.36</var>$40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount <br/>
<a id="pl.69.37"></a><var>69.37</var>of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, paragraph (c), is also <br/>
<a id="pl.69.38"></a><var>69.38</var>increased by $40,000 for aids payable in calendar year 1995 only, provided that: <br/>
<a id="pl.69.39"></a><var>69.39</var>    (i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent; <br/>
<a id="pl.70.1"></a><var>70.1</var>    (ii) the city portion of the tax capacity rate exceeds 100 percent; and <br/>
<a id="pl.70.2"></a><var>70.2</var>    (iii) its city aid base is less than $60 per capita. <br/>
<a id="pl.70.3"></a><var>70.3</var>    (c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and <br/>
<a id="pl.70.4"></a><var>70.4</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.70.5"></a><var>70.5</var>paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that: <br/>
<a id="pl.70.6"></a><var>70.6</var>    (i) the city has a population in 1994 of 2,500 or more; <br/>
<a id="pl.70.7"></a><var>70.7</var>    (ii) the city is located in a county, outside of the metropolitan area, which contains a <br/>
<a id="pl.70.8"></a><var>70.8</var>city of the first class; <br/>
<a id="pl.70.9"></a><var>70.9</var>    (iii) the city's net tax capacity used in calculating its 1996 aid under section <br/>
<statute_ref><a id="pl.70.10"></a><var>70.10</var>477A.013
         </statute_ref> is less than $400 per capita; and <br/>
<a id="pl.70.11"></a><var>70.11</var>    (iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of <br/>
<a id="pl.70.12"></a><var>70.12</var>property located in the city is classified as railroad property. <br/>
<a id="pl.70.13"></a><var>70.13</var>    (d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and <br/>
<a id="pl.70.14"></a><var>70.14</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.70.15"></a><var>70.15</var>paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that: <br/>
<a id="pl.70.16"></a><var>70.16</var>    (i) the city was incorporated as a statutory city after December 1, 1993; <br/>
<a id="pl.70.17"></a><var>70.17</var>    (ii) its city aid base does not exceed $5,600; and <br/>
<a id="pl.70.18"></a><var>70.18</var>    (iii) the city had a population in 1996 of 5,000 or more. <br/>
<a id="pl.70.19"></a><var>70.19</var>    (e) The city aid base for a city is increased by $150,000 for aids payable in 2000 and <br/>
<a id="pl.70.20"></a><var>70.20</var>thereafter, and the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, <br/>
<a id="pl.70.21"></a><var>70.21</var>subdivision 9
         </statute_ref>, paragraph (c), is also increased by $150,000 in calendar year 2000 only, <br/>
<a id="pl.70.22"></a><var>70.22</var>provided that: <br/>
<a id="pl.70.23"></a><var>70.23</var>    (1) the city has a population that is greater than 1,000 and less than 2,500; <br/>
<a id="pl.70.24"></a><var>70.24</var>    (2) its commercial and industrial percentage for aids payable in 1999 is greater <br/>
<a id="pl.70.25"></a><var>70.25</var>than 45 percent; and <br/>
<a id="pl.70.26"></a><var>70.26</var>    (3) the total market value of all commercial and industrial property in the city <br/>
<a id="pl.70.27"></a><var>70.27</var>for assessment year 1999 is at least 15 percent less than the total market value of all <br/>
<a id="pl.70.28"></a><var>70.28</var>commercial and industrial property in the city for assessment year 1998. <br/>
<a id="pl.70.29"></a><var>70.29</var>    (f) The city aid base for a city is increased by $200,000 in 2000 and thereafter, and <br/>
<a id="pl.70.30"></a><var>70.30</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.70.31"></a><var>70.31</var>paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that: <br/>
<a id="pl.70.32"></a><var>70.32</var>    (1) the city had a population in 1997 of 2,500 or more; <br/>
<a id="pl.70.33"></a><var>70.33</var>    (2) the net tax capacity of the city used in calculating its 1999 aid under section <br/>
<statute_ref><a id="pl.70.34"></a><var>70.34</var>477A.013
         </statute_ref> is less than $650 per capita; <br/>
<a id="pl.70.35"></a><var>70.35</var>    (3) the pre-1940 housing percentage of the city used in calculating 1999 aid under <br/>
<a id="pl.70.36"></a><var>70.36</var>section 
         <statute_ref>477A.013</statute_ref> is greater than 12 percent; <br/>
<a id="pl.71.1"></a><var>71.1</var>    (4) the 1999 local government aid of the city under section 
         <statute_ref>477A.013</statute_ref> is less than <br/>
<a id="pl.71.2"></a><var>71.2</var>20 percent of the amount that the formula aid of the city would have been if the need <br/>
<a id="pl.71.3"></a><var>71.3</var>increase percentage was 100 percent; and <br/>
<a id="pl.71.4"></a><var>71.4</var>    (5) the city aid base of the city used in calculating aid under section 
         <statute_ref>477A.013 <br/>
</statute_ref><a id="pl.71.5"></a><var>71.5</var>is less than $7 per capita. <br/>
<a id="pl.71.6"></a><var>71.6</var>    (g) The city aid base for a city is increased by $102,000 in 2000 and thereafter, and <br/>
<a id="pl.71.7"></a><var>71.7</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.71.8"></a><var>71.8</var>paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that: <br/>
<a id="pl.71.9"></a><var>71.9</var>    (1) the city has a population in 1997 of 2,000 or more; <br/>
<a id="pl.71.10"></a><var>71.10</var>    (2) the net tax capacity of the city used in calculating its 1999 aid under section <br/>
<statute_ref><a id="pl.71.11"></a><var>71.11</var>477A.013
         </statute_ref> is less than $455 per capita; <br/>
<a id="pl.71.12"></a><var>71.12</var>    (3) the net levy of the city used in calculating 1999 aid under section 
         <statute_ref>477A.013</statute_ref> is <br/>
<a id="pl.71.13"></a><var>71.13</var>greater than $195 per capita; and <br/>
<a id="pl.71.14"></a><var>71.14</var>    (4) the 1999 local government aid of the city under section 
         <statute_ref>477A.013</statute_ref> is less than <br/>
<a id="pl.71.15"></a><var>71.15</var>38 percent of the amount that the formula aid of the city would have been if the need <br/>
<a id="pl.71.16"></a><var>71.16</var>increase percentage was 100 percent. <br/>
<a id="pl.71.17"></a><var>71.17</var>    (h) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and <br/>
<a id="pl.71.18"></a><var>71.18</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.71.19"></a><var>71.19</var>paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that: <br/>
<a id="pl.71.20"></a><var>71.20</var>    (1) the city has a population in 1998 that is greater than 200 but less than 500; <br/>
<a id="pl.71.21"></a><var>71.21</var>    (2) the city's revenue need used in calculating aids payable in 2000 was greater <br/>
<a id="pl.71.22"></a><var>71.22</var>than $200 per capita; <br/>
<a id="pl.71.23"></a><var>71.23</var>    (3) the city net tax capacity for the city used in calculating aids available in 2000 <br/>
<a id="pl.71.24"></a><var>71.24</var>was equal to or less than $200 per capita; <br/>
<a id="pl.71.25"></a><var>71.25</var>    (4) the city aid base of the city used in calculating aid under section 
         <statute_ref>477A.013 <br/>
</statute_ref><a id="pl.71.26"></a><var>71.26</var>is less than $65 per capita; and <br/>
<a id="pl.71.27"></a><var>71.27</var>    (5) the city's formula aid for aids payable in 2000 was greater than zero. <br/>
<a id="pl.71.28"></a><var>71.28</var>    (i) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and <br/>
<a id="pl.71.29"></a><var>71.29</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.71.30"></a><var>71.30</var>paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that: <br/>
<a id="pl.71.31"></a><var>71.31</var>    (1) the city had a population in 1998 that is greater than 200 but less than 500; <br/>
<a id="pl.71.32"></a><var>71.32</var>    (2) the city's commercial industrial percentage used in calculating aids payable in <br/>
<a id="pl.71.33"></a><var>71.33</var>2000 was less than ten percent; <br/>
<a id="pl.71.34"></a><var>71.34</var>    (3) more than 25 percent of the city's population was 60 years old or older according <br/>
<a id="pl.71.35"></a><var>71.35</var>to the 1990 census; <br/>
<a id="pl.72.1"></a><var>72.1</var>    (4) the city aid base of the city used in calculating aid under section 
         <statute_ref>477A.013 <br/>
</statute_ref><a id="pl.72.2"></a><var>72.2</var>is less than $15 per capita; and <br/>
<a id="pl.72.3"></a><var>72.3</var>    (5) the city's formula aid for aids payable in 2000 was greater than zero. <br/>
<a id="pl.72.4"></a><var>72.4</var>    (j) The city aid base for a city is increased by $45,000 in 2001 and thereafter and <br/>
<a id="pl.72.5"></a><var>72.5</var>by an additional $50,000 in calendar years 2002 to 2011, and the maximum amount of <br/>
<a id="pl.72.6"></a><var>72.6</var>total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, paragraph (c), is also <br/>
<a id="pl.72.7"></a><var>72.7</var>increased by $45,000 in calendar year 2001 only, and by $50,000 in calendar year 2002 <br/>
<a id="pl.72.8"></a><var>72.8</var>only, provided that: <br/>
<a id="pl.72.9"></a><var>72.9</var>    (1) the net tax capacity of the city used in calculating its 2000 aid under section <br/>
<statute_ref><a id="pl.72.10"></a><var>72.10</var>477A.013
         </statute_ref> is less than $810 per capita; <br/>
<a id="pl.72.11"></a><var>72.11</var>    (2) the population of the city declined more than two percent between 1988 and 1998; <br/>
<a id="pl.72.12"></a><var>72.12</var>    (3) the net levy of the city used in calculating 2000 aid under section 
         <statute_ref>477A.013</statute_ref> is <br/>
<a id="pl.72.13"></a><var>72.13</var>greater than $240 per capita; and <br/>
<a id="pl.72.14"></a><var>72.14</var>    (4) the city received less than $36 per capita in aid under section 
         <statute_ref>477A.013, <br/>
<a id="pl.72.15"></a><var>72.15</var>subdivision 9
         </statute_ref>, for aids payable in 2000. <br/>
<a id="pl.72.16"></a><var>72.16</var>    (k) The city aid base for a city with a population of 10,000 or more which is located <br/>
<a id="pl.72.17"></a><var>72.17</var>outside of the seven-county metropolitan area is increased in 2002 and thereafter, and the <br/>
<a id="pl.72.18"></a><var>72.18</var>maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.72.19"></a><var>72.19</var>paragraph (b) or (c), is also increased in calendar year 2002 only, by an amount equal to <br/>
<a id="pl.72.20"></a><var>72.20</var>the lesser of: <br/>
<a id="pl.72.21"></a><var>72.21</var>    (1)(i) the total population of the city, as determined by the United States Bureau of <br/>
<a id="pl.72.22"></a><var>72.22</var>the Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or <br/>
<a id="pl.72.23"></a><var>72.23</var>    (2) $2,500,000. <br/>
<a id="pl.72.24"></a><var>72.24</var>    (l) The city aid base is increased by $50,000 in 2002 and thereafter, and the <br/>
<a id="pl.72.25"></a><var>72.25</var>maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.72.26"></a><var>72.26</var>paragraph (c), is also increased by $50,000 in calendar year 2002 only, provided that: <br/>
<a id="pl.72.27"></a><var>72.27</var>    (1) the city is located in the seven-county metropolitan area; <br/>
<a id="pl.72.28"></a><var>72.28</var>    (2) its population in 2000 is between 10,000 and 20,000; and <br/>
<a id="pl.72.29"></a><var>72.29</var>    (3) its commercial industrial percentage, as calculated for city aid payable in 2001, <br/>
<a id="pl.72.30"></a><var>72.30</var>was greater than 25 percent. <br/>
<a id="pl.72.31"></a><var>72.31</var>    (m) The city aid base for a city is increased by $150,000 in calendar years 2002 to <br/>
<a id="pl.72.32"></a><var>72.32</var>2011 and by an additional $75,000 in calendar years 2009 to 2014 and the maximum <br/>
<a id="pl.72.33"></a><var>72.33</var>amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, paragraph (c), is <br/>
<a id="pl.72.34"></a><var>72.34</var>also increased by $150,000 in calendar year 2002 only and by $75,000 in calendar year <br/>
<a id="pl.72.35"></a><var>72.35</var>2009 only, provided that: <br/>
<a id="pl.72.36"></a><var>72.36</var>    (1) the city had a population of at least 3,000 but no more than 4,000 in 1999; <br/>
<a id="pl.73.1"></a><var>73.1</var>    (2) its home county is located within the seven-county metropolitan area; <br/>
<a id="pl.73.2"></a><var>73.2</var>    (3) its pre-1940 housing percentage is less than 15 percent; and <br/>
<a id="pl.73.3"></a><var>73.3</var>    (4) its city net tax capacity per capita for taxes payable in 2000 is less than $900 <br/>
<a id="pl.73.4"></a><var>73.4</var>per capita. <br/>
<a id="pl.73.5"></a><var>73.5</var>    (n) The city aid base for a city is increased by $200,000 beginning in calendar <br/>
<a id="pl.73.6"></a><var>73.6</var>year 2003 and the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, <br/>
<a id="pl.73.7"></a><var>73.7</var>subdivision 9
         </statute_ref>, paragraph (c), is also increased by $200,000 in calendar year 2003 only, <br/>
<a id="pl.73.8"></a><var>73.8</var>provided that the city qualified for an increase in homestead and agricultural credit aid <br/>
<a id="pl.73.9"></a><var>73.9</var>under Laws 1995, chapter 264, article 8, section 18. <br/>
<a id="pl.73.10"></a><var>73.10</var>    (o) The city aid base for a city is increased by $200,000 in 2004 only and the <br/>
<a id="pl.73.11"></a><var>73.11</var>maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is <br/>
<a id="pl.73.12"></a><var>73.12</var>also increased by $200,000 in calendar year 2004 only, if the city is the site of a nuclear <br/>
<a id="pl.73.13"></a><var>73.13</var>dry cask storage facility. <br/>
<a id="pl.73.14"></a><var>73.14</var>    (p) The city aid base for a city is increased by $10,000 in 2004 and thereafter and the <br/>
<a id="pl.73.15"></a><var>73.15</var>maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also increased <br/>
<a id="pl.73.16"></a><var>73.16</var>by $10,000 in calendar year 2004 only, if the city was included in a federal major disaster <br/>
<a id="pl.73.17"></a><var>73.17</var>designation issued on April 1, 1998, and its pre-1940 housing stock was decreased by <br/>
<a id="pl.73.18"></a><var>73.18</var>more than 40 percent between 1990 and 2000. <br/>
<a id="pl.73.19"></a><var>73.19</var>    (q) The city aid base for a city is increased by $30,000 in 2009 and thereafter and the <br/>
<a id="pl.73.20"></a><var>73.20</var>maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also increased <br/>
<a id="pl.73.21"></a><var>73.21</var>by $25,000 in calendar year 2006 only if the city had a population in 2003 of at least 1,000 <br/>
<a id="pl.73.22"></a><var>73.22</var>and has a state park for which the city provides rescue services and which comprised at <br/>
<a id="pl.73.23"></a><var>73.23</var>least 14 percent of the total geographic area included within the city boundaries in 2000. <br/>
<a id="pl.73.24"></a><var>73.24</var>    (r) The city aid base for a city is increased by $80,000 in 2009 and thereafter and <br/>
<a id="pl.73.25"></a><var>73.25</var>the minimum and maximum amount of total aid it may receive under section 
         <statute_ref>477A.013</statute_ref>, <br/>
<a id="pl.73.26"></a><var>73.26</var>subdivision 9, is also increased by $80,000 in calendar year 2009 only, if: <br/>
<a id="pl.73.27"></a><var>73.27</var>    (1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed <br/>
<a id="pl.73.28"></a><var>73.28</var>to be placed in trust status as tax-exempt Indian land; <br/>
<a id="pl.73.29"></a><var>73.29</var>    (2) the placement of the land is being challenged administratively or in court; and <br/>
<a id="pl.73.30"></a><var>73.30</var>    (3) due to the challenge, the land proposed to be placed in trust is still on the tax <br/>
<a id="pl.73.31"></a><var>73.31</var>rolls as of May 1, 2006. <br/>
<a id="pl.73.32"></a><var>73.32</var>    (s) The city aid base for a city is increased by $100,000 in 2007 and thereafter and <br/>
<a id="pl.73.33"></a><var>73.33</var>the minimum and maximum total amount of aid it may receive under this section is also <br/>
<a id="pl.73.34"></a><var>73.34</var>increased in calendar year 2007 only, provided that: <br/>
<a id="pl.73.35"></a><var>73.35</var>    (1) the city has a 2004 estimated population greater than 200 but less than 2,000; <br/>
<a id="pl.73.36"></a><var>73.36</var>    (2) its city net tax capacity for aids payable in 2006 was less than $300 per capita; <br/>
<a id="pl.74.1"></a><var>74.1</var>    (3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids <br/>
<a id="pl.74.2"></a><var>74.2</var>payable in 2006 was greater than 110 percent; and <br/>
<a id="pl.74.3"></a><var>74.3</var>    (4) it is located in a county where at least 15,000 acres of land are classified as <br/>
<a id="pl.74.4"></a><var>74.4</var>tax-exempt Indian reservations according to the 2004 abstract of tax-exempt property. <br/>
<a id="pl.74.5"></a><var>74.5</var>    (t) The city aid base for a city is increased by $30,000 in 2009 only, and the <br/>
<a id="pl.74.6"></a><var>74.6</var>maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also increased <br/>
<a id="pl.74.7"></a><var>74.7</var>by $30,000 in calendar year 2009, only if the city had a population in 2005 of less than <br/>
<a id="pl.74.8"></a><var>74.8</var>3,000 and the city's boundaries as of 2007 were formed by the consolidation of two cities <br/>
<a id="pl.74.9"></a><var>74.9</var>and one township in 2002. <br/>
<a id="pl.74.10"></a><var>74.10</var>    (u) The city aid base for a city is increased by $100,000 in 2009 and thereafter, and <br/>
<a id="pl.74.11"></a><var>74.11</var>the maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also <br/>
<a id="pl.74.12"></a><var>74.12</var>increased by $100,000 in calendar year 2009 only, if the city had a city net tax capacity for <br/>
<a id="pl.74.13"></a><var>74.13</var>aids payable in 2007 of less than $150 per capita and the city experienced flooding on <br/>
<a id="pl.74.14"></a><var>74.14</var>March 14, 2007, that resulted in evacuation of at least 40 homes.<br/>
<a id="pl.74.15"></a><var>74.15</var>    (v) The city aid base for a city is increased by $100,000 in 2009 to 2013, and the <br/>
<a id="pl.74.16"></a><var>74.16</var>maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also increased <br/>
<a id="pl.74.17"></a><var>74.17</var>by $100,000 in calendar year 2009 only, if the city:<br/>
<a id="pl.74.18"></a><var>74.18</var>    (1) is located outside of the Minneapolis-St. Paul standard metropolitan statistical <br/>
<a id="pl.74.19"></a><var>74.19</var>area;<br/>
<a id="pl.74.20"></a><var>74.20</var>    (2) has a 2005 population greater than 7,000 but less than 8,000; and<br/>
<a id="pl.74.21"></a><var>74.21</var>    (3) has a 2005 net tax capacity per capita of less than $500.<br/>
<a id="pl.74.22"></a><var>74.22</var>    (w) The city aid base is increased by $25,000 in calendar years 2009 to 2013 and the <br/>
<a id="pl.74.23"></a><var>74.23</var>maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is <br/>
<a id="pl.74.24"></a><var>74.24</var>increased by $25,000 in calendar year 2009 only, provided that:<br/>
<a id="pl.74.25"></a><var>74.25</var>    (1) the city is located in the seven-county metropolitan area;<br/>
<a id="pl.74.26"></a><var>74.26</var>    (2) its population in 2006 is less than 200; and <br/>
<a id="pl.74.27"></a><var>74.27</var>    (3) the percentage of its housing stock built before 1940, according to the 2000 <br/>
<a id="pl.74.28"></a><var>74.28</var>United States Census, is greater than 40 percent.<br/>
<a id="pl.74.29"></a><var>74.29</var>    (x) The city aid base is increased by $90,000 in calendar year 2009 only and the <br/>
<a id="pl.74.30"></a><var>74.30</var>minimum and maximum total amount of aid it may receive under section 
         <statute_ref>477A.013</statute_ref>, <br/>
<a id="pl.74.31"></a><var>74.31</var>subdivision 9, is also increased by $90,000 in calendar year 2009 only, provided that the <br/>
<a id="pl.74.32"></a><var>74.32</var>city is located in the seven-county metropolitan area, has a 2006 population between 5,000 <br/>
<a id="pl.74.33"></a><var>74.33</var>and 7,000 and has a 1997 population of over 7,000.<br/>
<a id="pl.74.34"></a><var>74.34</var>(y) The city aid base is increased by $100,000 in calendar years 2011 to 2015 and <br/>
<a id="pl.74.35"></a><var>74.35</var>the maximum amount of total aid a city may receive under section 477A.013, subdivision <br/>
<a id="pl.74.36"></a><var>74.36</var>9, is increased by $100,000 in 2011 only, provided that:<br/>
<a id="pl.75.1"></a><var>75.1</var>(1) the city is located in the metropolitan area;<br/>
<a id="pl.75.2"></a><var>75.2</var>(2) its 2006 population is less than 2,000; and<br/>
<a id="pl.75.3"></a><var>75.3</var>(3) its population has grown by at least 200 percent between 1996 and 2006.<br/>
<a id="pl.75.4"></a><var>75.4</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.75.5"></a><var>75.5</var>2011 and thereafter.<br/>
<br/>
<a id="bill.6.6.0"></a><a id="pl.75.6"></a><var>75.6</var>    Sec. 6. Minnesota Statutes 2008, section 477A.013, subdivision 9, is amended to read:<br/>
<a id="pl.75.7"></a><var>75.7</var>    Subd. 9. <b>City aid distribution.</b> (a) In calendar year 2009 and thereafter, each <br/>
<a id="pl.75.8"></a><var>75.8</var>city shall receive an aid distribution equal to the sum of (1) the city formula aid under <br/>
<a id="pl.75.9"></a><var>75.9</var>subdivision 8, and (2) its city aid base. In calendar year 2010, each city receives an aid <br/>
<a id="pl.75.10"></a><var>75.10</var>distribution under this section, before the reductions under subdivision 11, equal to the <br/>
<a id="pl.75.11"></a><var>75.11</var>amount of aid under this section that it was certified to receive in 2009. In calendar year <br/>
<a id="pl.75.12"></a><var>75.12</var>2011 and thereafter, each city receives an aid distribution under this section equal to the <br/>
<a id="pl.75.13"></a><var>75.13</var>sum of (1) the city formula aid under subdivision 8, and (2) its city aid base.<br/>
<a id="pl.75.14"></a><var>75.14</var>    (b) For aids payable in 2009 only, the total aid for any city shall not exceed the sum <br/>
<a id="pl.75.15"></a><var>75.15</var>of (1) 35 percent of the city's net levy for the year prior to the aid distribution, plus (2) <br/>
<a id="pl.75.16"></a><var>75.16</var>its total aid in the previous year.<br/>
<a id="pl.75.17"></a><var>75.17</var>    (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed <br/>
<a id="pl.75.18"></a><var>75.18</var>the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution <br/>
<a id="pl.75.19"></a><var>75.19</var>plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total <br/>
<a id="pl.75.20"></a><var>75.20</var>aid for any city with a population of 2,500 or more may not be less than its total aid under <br/>
<a id="pl.75.21"></a><var>75.21</var>this section in the previous year minus the lesser of $10 multiplied by its population, or ten <br/>
<a id="pl.75.22"></a><var>75.22</var>percent of its net levy in the year prior to the aid distribution.<br/>
<a id="pl.75.23"></a><var>75.23</var>    (d) For aids payable in 2010 and thereafter, the total aid for a city with a population <br/>
<a id="pl.75.24"></a><var>75.24</var>less than 2,500 must not be less than the amount it was certified to receive in the <br/>
<a id="pl.75.25"></a><var>75.25</var>previous year minus the lesser of $10 multiplied by its population, or five percent of its <br/>
<a id="pl.75.26"></a><var>75.26</var>2003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a <br/>
<a id="pl.75.27"></a><var>75.27</var>population less than 2,500 must not be less than what it received under this section in the <br/>
<a id="pl.75.28"></a><var>75.28</var>previous year unless its total aid in calendar year 2008 was aid under section 
         <statute_ref>477A.011</statute_ref>, <br/>
<a id="pl.75.29"></a><var>75.29</var>subdivision 36, paragraph (s), in which case its minimum aid is zero.<br/>
<a id="pl.75.30"></a><var>75.30</var>    (e) A city's aid loss under this section may not exceed $300,000 in any year in <br/>
<a id="pl.75.31"></a><var>75.31</var>which the total city aid appropriation under section 
         <statute_ref>477A.03, subdivision 2a</statute_ref>, is equal or <br/>
<a id="pl.75.32"></a><var>75.32</var>greater than the appropriation under that subdivision in the previous year, unless the <br/>
<a id="pl.75.33"></a><var>75.33</var>city has an adjustment in its city net tax capacity under the process described in section <br/>
<statute_ref><a id="pl.75.34"></a><var>75.34</var>469.174, subdivision 28
         </statute_ref>.<br/>
<a id="pl.76.1"></a><var>76.1</var>    (f) If a city's net tax capacity used in calculating aid under this section has decreased <br/>
<a id="pl.76.2"></a><var>76.2</var>in any year by more than 25 percent from its net tax capacity in the previous year due to <br/>
<a id="pl.76.3"></a><var>76.3</var>property becoming tax-exempt Indian land, the city's maximum allowed aid increase <br/>
<a id="pl.76.4"></a><var>76.4</var>under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the <br/>
<a id="pl.76.5"></a><var>76.5</var>year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease <br/>
<a id="pl.76.6"></a><var>76.6</var>resulting from the property becoming tax exempt.<br/>
<a id="pl.76.7"></a><var>76.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.7.0"></a><a id="pl.76.8"></a><var>76.8</var>    Sec. 7. Minnesota Statutes 2008, section 477A.013, is amended by adding a <br/>
<a id="pl.76.9"></a><var>76.9</var>subdivision to read:<br/>
<a id="pl.76.10"></a><var>76.10</var>    Subd. 11. <b>2010 city aid.</b> For aid payable in 2010 only, each city's distribution <br/>
<a id="pl.76.11"></a><var>76.11</var>amount under subdivision 9 is reduced by an amount equal to 1.8889 percent of the city's <br/>
<a id="pl.76.12"></a><var>76.12</var>net tax capacity, as defined in section 477A.011, subdivision 20, that would otherwise be <br/>
<a id="pl.76.13"></a><var>76.13</var>used in calculating aids payable in 2010.<br/>
<a id="pl.76.14"></a><var>76.14</var>The reduction is limited to the sum of the city's payable 2010 distribution under <br/>
<a id="pl.76.15"></a><var>76.15</var>this section and the city's payable 2010 reimbursement under section 273.1384 before <br/>
<a id="pl.76.16"></a><var>76.16</var>the reductions in this subdivision.<br/>
<a id="pl.76.17"></a><var>76.17</var>The reduction is applied first to the city's distribution under this section, and then, if <br/>
<a id="pl.76.18"></a><var>76.18</var>necessary, to the city's reimbursements under section 273.1384.<br/>
<a id="pl.76.19"></a><var>76.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.8.0"></a><a id="pl.76.20"></a><var>76.20</var>    Sec. 8. <b>[477A.0133] 2009 CITY AND COUNTY AID REDUCTIONS.</b><br/>
<a id="pl.76.21"></a><var>76.21</var>    Subdivision 1. <b>City aid.</b> The commissioner of revenue shall compute an aid <br/>
<a id="pl.76.22"></a><var>76.22</var>reduction amount for each city for aid payable in 2009 equal to 1.2111 percent of the city's <br/>
<a id="pl.76.23"></a><var>76.23</var>net tax capacity, as defined in section 477A.011, subdivision 20, that would be used in <br/>
<a id="pl.76.24"></a><var>76.24</var>calculating for aids payable in 2010.<br/>
<a id="pl.76.25"></a><var>76.25</var>The reduction is limited to the sum of the city's payable 2009 distributions, prior to <br/>
<a id="pl.76.26"></a><var>76.26</var>the reductions under this subdivision, under sections 273.1384 and 477A.013.<br/>
<a id="pl.76.27"></a><var>76.27</var>The reduction is applied first to the city's distribution under section 477A.013, and <br/>
<a id="pl.76.28"></a><var>76.28</var>then, if necessary, to the city's reimbursements under section 273.1384.<br/>
<a id="pl.76.29"></a><var>76.29</var>To the extent that sufficient information is available on each successive payment date <br/>
<a id="pl.76.30"></a><var>76.30</var>within the year, the commissioner of revenue shall pay any remaining 2009 distribution or <br/>
<a id="pl.76.31"></a><var>76.31</var>reimbursement amount that is reduced under this subdivision in equal installments on the <br/>
<a id="pl.76.32"></a><var>76.32</var>payment dates provided by law.<br/>
<a id="pl.77.1"></a><var>77.1</var>    Subd. 2. <b>County aid.</b> The commissioner of revenue shall compute an aid reduction <br/>
<a id="pl.77.2"></a><var>77.2</var>amount for each county's aid under section 477A.0124 for aid payable in 2009 equal <br/>
<a id="pl.77.3"></a><var>77.3</var>to 0.2308 percent of the county's net tax capacity, as defined in section 477A.0124, <br/>
<a id="pl.77.4"></a><var>77.4</var>subdivision 2, used in calculating the 2009 certified amount.<br/>
<a id="pl.77.5"></a><var>77.5</var>To the extent that sufficient information is available on each payment date in 2009, <br/>
<a id="pl.77.6"></a><var>77.6</var>the commissioner of revenue shall pay any remaining 2009 distribution or reimbursement <br/>
<a id="pl.77.7"></a><var>77.7</var>amount that is reduced under this section in equal installments on the payment dates <br/>
<a id="pl.77.8"></a><var>77.8</var>provided by law.<br/>
<a id="pl.77.9"></a><var>77.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.9.0"></a><a id="pl.77.10"></a><var>77.10</var>    Sec. 9. Minnesota Statutes 2008, section 477A.03, subdivision 2a, is amended to read:<br/>
<a id="pl.77.11"></a><var>77.11</var>    Subd. 2a. <b>Cities.</b> For aids payable in 2009 and thereafter, the total aid paid under <br/>
<a id="pl.77.12"></a><var>77.12</var>section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is $526,148,487, subject to adjustment in subdivision 5. <br/>
<a id="pl.77.13"></a><var>77.13</var>For aids payable in 2010, the total aid paid under section 477A.013, subdivision 9, prior <br/>
<a id="pl.77.14"></a><var>77.14</var>to the reductions under section 477A.013, subdivision 11, is $526,148,487. For aids <br/>
<a id="pl.77.15"></a><var>77.15</var>payable in 2011 and thereafter, the total aid paid under section 477A.013, subdivision <br/>
<a id="pl.77.16"></a><var>77.16</var>9, is $516,500,000.<br/>
<a id="pl.77.17"></a><var>77.17</var><b>EFFECTIVE DATE.</b>This section is effective for aid paid in 2010 and thereafter.<br/>
<br/>
<a id="bill.6.10.0"></a><a id="pl.77.18"></a><var>77.18</var>    Sec. 10. <b>PAYMENTS TO CITY OF COON RAPIDS.</b><br/>
<a id="pl.77.19"></a><var>77.19</var>The commissioner of revenue shall make a payment of $225,000 to the city of Coon <br/>
<a id="pl.77.20"></a><var>77.20</var>Rapids to compensate for its final city aid base payment of $225,000 in December 2008 <br/>
<a id="pl.77.21"></a><var>77.21</var>under Minnesota Statutes 2006, section 477A.011, subdivision 36, paragraph (e), which <br/>
<a id="pl.77.22"></a><var>77.22</var>was canceled due to the governor's unallotment. The payment shall be made at the time of <br/>
<a id="pl.77.23"></a><var>77.23</var>the first aid payments in calendar year 2010 under Minnesota Statutes, section 477A.015. <br/>
<a id="pl.77.24"></a><var>77.24</var>This payment shall not be included when calculating any city aid or credit reductions.<br/>
<a id="pl.77.25"></a><var>77.25</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.77.26"></a><var>77.26</var>2010.<br/>
<br/>
<a id="bill.6.11.0"></a><a id="pl.77.27"></a><var>77.27</var>    Sec. 11. <b> REPEALER.</b><br/>
<a id="pl.77.28"></a><var>77.28</var>Minnesota Statutes 2008, section 477A.03, subdivision 5, is repealed.<br/>
<a id="pl.77.29"></a><var>77.29</var><b>EFFECTIVE DATE.</b>This section is effective for aid paid in 2010 and thereafter.<br/>
<br/>
<a id="bill.7.0.0"></a>

<a id="bill.7.1.0"></a><a id="pl.78.3"></a><var>78.3</var>    Section 1. <b>[290D.01] CITATION.</b><br/>
<a id="pl.78.4"></a><var>78.4</var>This program shall be named the "seasonal recreational property tax deferral <br/>
<a id="pl.78.5"></a><var>78.5</var>program."<br/>
<br/>
<a id="bill.7.2.0"></a><a id="pl.78.6"></a><var>78.6</var>    Sec. 2. <b>[290D.02] TERMS.</b><br/>
<a id="pl.78.7"></a><var>78.7</var>    Subdivision 1. <b>Terms.</b> For purposes of sections 290D.01 to 290D.08, the terms <br/>
<a id="pl.78.8"></a><var>78.8</var>defined in this section have the meanings given them.<br/>
<a id="pl.78.9"></a><var>78.9</var>    Subd. 2. <b>Primary property owner.</b> "Primary property owner" means a person who <br/>
<a id="pl.78.10"></a><var>78.10</var>(1) has been the owner, or one of the owners, of the eligible property for at least 15 years <br/>
<a id="pl.78.11"></a><var>78.11</var>prior to the year the application is filed under section 290D.04; and (2) applies for the <br/>
<a id="pl.78.12"></a><var>78.12</var>deferral of property taxes under section 290D.04.<br/>
<a id="pl.78.13"></a><var>78.13</var>    Subd. 3. <b>Secondary property owner.</b> "Secondary property owner" means any <br/>
<a id="pl.78.14"></a><var>78.14</var>person, other than the primary property owner, who has been an owner of the eligible <br/>
<a id="pl.78.15"></a><var>78.15</var>property for at least 15 years prior to the year the initial application is filed for deferral <br/>
<a id="pl.78.16"></a><var>78.16</var>of property taxes under section 290D.04.<br/>
<a id="pl.78.17"></a><var>78.17</var>    Subd. 4. <b>Eligible property.</b> "Eligible property" means a parcel of property or <br/>
<a id="pl.78.18"></a><var>78.18</var>contiguous parcels of property under the same ownership classified as noncommercial <br/>
<a id="pl.78.19"></a><var>78.19</var>seasonal residential recreational 4c(1) property under section 273.13, subdivision 25.<br/>
<a id="pl.78.20"></a><var>78.20</var>    Subd. 5. <b>Base property tax amount.</b> "Base property tax amount" means the total <br/>
<a id="pl.78.21"></a><var>78.21</var>property taxes levied by all taxing jurisdictions, including special assessments, on the <br/>
<a id="pl.78.22"></a><var>78.22</var>eligible property in the year prior to the year that the initial application is approved under <br/>
<a id="pl.78.23"></a><var>78.23</var>section 290D.04 and payable in the year of the application.<br/>
<a id="pl.78.24"></a><var>78.24</var>    Subd. 6. <b>Special assessments.</b> "Special assessments" mean any assessment, fee, or <br/>
<a id="pl.78.25"></a><var>78.25</var>other charge that may be made by law, and that appears on the property tax statement for <br/>
<a id="pl.78.26"></a><var>78.26</var>the property for collection under the laws applicable to the enforcement of real estate taxes.<br/>
<a id="pl.78.27"></a><var>78.27</var>    Subd. 7. <b>Commissioner.</b> "Commissioner" means the commissioner of revenue.<br/>
<br/>
<a id="bill.7.3.0"></a><a id="pl.78.28"></a><var>78.28</var>    Sec. 3. <b>[290D.03] QUALIFICATIONS FOR DEFERRAL.</b><br/>
<a id="pl.78.29"></a><var>78.29</var>In order for an eligible property to qualify for treatment under this program:<br/>
<a id="pl.78.30"></a><var>78.30</var>(1) the eligible property must have been owned solely by the primary property owner, <br/>
<a id="pl.78.31"></a><var>78.31</var>or jointly with others, for at least 15 years prior to the year the initial application is filed;<br/>
<a id="pl.78.32"></a><var>78.32</var>(2) there must be no state or federal tax liens or judgment liens on the eligible <br/>
<a id="pl.78.33"></a><var>78.33</var>property;<br/>
<a id="pl.79.1"></a><var>79.1</var>(3) there must be no mortgages or other liens on the eligible property that secure <br/>
<a id="pl.79.2"></a><var>79.2</var>future advances, except for those subject to credit limits that result in compliance with <br/>
<a id="pl.79.3"></a><var>79.3</var>clause (4); and<br/>
<a id="pl.79.4"></a><var>79.4</var>(4) the total unpaid balances of debts secured by mortgages and other liens on the <br/>
<a id="pl.79.5"></a><var>79.5</var>eligible property, including unpaid and delinquent special assessments and interest, and <br/>
<a id="pl.79.6"></a><var>79.6</var>any delinquent property taxes, penalties, and interest, but not including property taxes <br/>
<a id="pl.79.7"></a><var>79.7</var>payable during the year, must not exceed 60 percent of the assessor's estimated market <br/>
<a id="pl.79.8"></a><var>79.8</var>value for the current assessment year.<br/>
<br/>
<a id="bill.7.4.0"></a><a id="pl.79.9"></a><var>79.9</var>    Sec. 4. <b>[290D.04] APPLICATION FOR DEFERRAL.</b><br/>
<a id="pl.79.10"></a><var>79.10</var>    Subdivision 1. <b>Initial application.</b> (a) A primary owner of a property meeting <br/>
<a id="pl.79.11"></a><var>79.11</var>the qualifications under section 
<statute_ref>290D.03</statute_ref> may apply to the commissioner for deferral <br/>
<a id="pl.79.12"></a><var>79.12</var>of taxes on the eligible property. Applications are due on or before July 1 for deferral <br/>
<a id="pl.79.13"></a><var>79.13</var>of any taxes payable in the following year. The application, which must be prescribed <br/>
<a id="pl.79.14"></a><var>79.14</var>by the commissioner, shall include the following items and any other information the <br/>
<a id="pl.79.15"></a><var>79.15</var>commissioner deems necessary: <br/>
<a id="pl.79.16"></a><var>79.16</var>(1) the name, address, and Social Security number of the primary property owner <br/>
<a id="pl.79.17"></a><var>79.17</var>and secondary property owners, if any;<br/>
<a id="pl.79.18"></a><var>79.18</var>(2) a copy of the property tax statement for the current taxes payable year for the <br/>
<a id="pl.79.19"></a><var>79.19</var>eligible property;<br/>
<a id="pl.79.20"></a><var>79.20</var>(3) the initial year of ownership of the primary property owner and any second <br/>
<a id="pl.79.21"></a><var>79.21</var>property owners of the eligible property;<br/>
<a id="pl.79.22"></a><var>79.22</var>(4) information on any mortgage loans or other amounts secured by mortgages or <br/>
<a id="pl.79.23"></a><var>79.23</var>other liens against the eligible property, for which purpose the commissioner may require <br/>
<a id="pl.79.24"></a><var>79.24</var>the applicant to provide a copy of the mortgage note, the mortgage, or a statement of the <br/>
<a id="pl.79.25"></a><var>79.25</var>balance owing on the mortgage loan provided by the mortgage holder. The commissioner <br/>
<a id="pl.79.26"></a><var>79.26</var>may require the appropriate documents in connection with obtaining and confirming <br/>
<a id="pl.79.27"></a><var>79.27</var>information on unpaid amounts secured by other liens; and<br/>
<a id="pl.79.28"></a><var>79.28</var>(5) the signatures of the primary property owner and all other owners, if any, stating <br/>
<a id="pl.79.29"></a><var>79.29</var>that each owner agrees to enroll the eligible property in the program to defer property <br/>
<a id="pl.79.30"></a><var>79.30</var>taxes under this chapter.<br/>
<a id="pl.79.31"></a><var>79.31</var>The application must state that program participation is voluntary. The application <br/>
<a id="pl.79.32"></a><var>79.32</var>must also state that program participation includes authorization for the annual deferred <br/>
<a id="pl.79.33"></a><var>79.33</var>amount. The deferred property tax calculated by the county and the cumulative deferred <br/>
<a id="pl.79.34"></a><var>79.34</var>property tax amount is public data.<br/>
<a id="pl.80.1"></a><var>80.1</var>(b) As part of the initial application process, if the property is abstract property, the <br/>
<a id="pl.80.2"></a><var>80.2</var>commissioner may require the applicant to obtain at the applicant's cost a report prepared <br/>
<a id="pl.80.3"></a><var>80.3</var>by a licensed abstracter showing the last deed and any unsatisfied mortgages, liens, <br/>
<a id="pl.80.4"></a><var>80.4</var>judgments, and state and federal tax lien notices which were recorded on or after the date <br/>
<a id="pl.80.5"></a><var>80.5</var>of that last deed with respect to the eligible property or to the applicant.<br/>
<a id="pl.80.6"></a><var>80.6</var>The certificate or report need not include references to any documents filed or <br/>
<a id="pl.80.7"></a><var>80.7</var>recorded more than 40 years prior to the date of the certification or report. The certification <br/>
<a id="pl.80.8"></a><var>80.8</var>or report must be as of a date not more than 30 days prior to submission of the application <br/>
<a id="pl.80.9"></a><var>80.9</var>under this section.<br/>
<a id="pl.80.10"></a><var>80.10</var>The commissioner may also require the county recorder or county registrar of the <br/>
<a id="pl.80.11"></a><var>80.11</var>county where the eligible property is located to provide copies of recorded documents <br/>
<a id="pl.80.12"></a><var>80.12</var>related to the applicant of the eligible property, for which the recorder or registrar shall <br/>
<a id="pl.80.13"></a><var>80.13</var>not charge a fee. The commissioner may use any information available to determine or <br/>
<a id="pl.80.14"></a><var>80.14</var>verify eligibility under this section.<br/>
<a id="pl.80.15"></a><var>80.15</var>    Subd. 2. <b>Approval; recording.</b> The commissioner shall approve all initial <br/>
<a id="pl.80.16"></a><var>80.16</var>applications that qualify under this chapter and shall notify the primary property owner on <br/>
<a id="pl.80.17"></a><var>80.17</var>or before December 1. The commissioner may investigate the facts or require confirmation <br/>
<a id="pl.80.18"></a><var>80.18</var>in regard to an application. The commissioner shall record or file a notice of qualification <br/>
<a id="pl.80.19"></a><var>80.19</var>for deferral, including the names of the primary and any secondary property owners and a <br/>
<a id="pl.80.20"></a><var>80.20</var>legal description of the eligible property, in the Office of the County Recorder, or registrar <br/>
<a id="pl.80.21"></a><var>80.21</var>of titles, whichever is applicable, in the county where the eligible property is located. The <br/>
<a id="pl.80.22"></a><var>80.22</var>notice must state that it serves as a notice of lien and that it includes deferrals under this <br/>
<a id="pl.80.23"></a><var>80.23</var>section for future years. The primary property owner shall pay the recording or filing fees <br/>
<a id="pl.80.24"></a><var>80.24</var>for the notice, which, notwithstanding section 
<statute_ref>357.18</statute_ref>, shall be paid by that owner at the <br/>
<a id="pl.80.25"></a><var>80.25</var>time of satisfaction of the lien.<br/>
<a id="pl.80.26"></a><var>80.26</var>    Subd. 3. <b>Penalty for failure; investigations.</b> (a) The commissioner shall assess <br/>
<a id="pl.80.27"></a><var>80.27</var>a penalty equal to 20 percent of the property taxes improperly deferred in the case of a <br/>
<a id="pl.80.28"></a><var>80.28</var>false application. The commissioner shall assess a penalty equal to 50 percent of the <br/>
<a id="pl.80.29"></a><var>80.29</var>property taxes improperly deferred if the taxpayer knowingly filed a false application. The <br/>
<a id="pl.80.30"></a><var>80.30</var>commissioner shall assess penalties under this section through the issuance of an order <br/>
<a id="pl.80.31"></a><var>80.31</var>under the provisions of chapter 270C. Persons affected by a commissioner's order issued <br/>
<a id="pl.80.32"></a><var>80.32</var>under this section may appeal as provided in chapter 270C.<br/>
<a id="pl.80.33"></a><var>80.33</var>(b) The commissioner may conduct investigations related to initial applications <br/>
<a id="pl.80.34"></a><var>80.34</var>required under this chapter within the period ending 3-1/2 years from the due date of <br/>
<a id="pl.80.35"></a><var>80.35</var>the application.<br/>
<a id="pl.81.1"></a><var>81.1</var>    Subd. 4. <b>Annual certification to commissioner.</b> Annually, on or before July 1, <br/>
<a id="pl.81.2"></a><var>81.2</var>the primary property owner must certify to the commissioner that the person continues <br/>
<a id="pl.81.3"></a><var>81.3</var>to qualify as a primary property owner. If the primary owner has died or has transferred <br/>
<a id="pl.81.4"></a><var>81.4</var>the property in the preceding year, a certification may be filed by the primary owner's <br/>
<a id="pl.81.5"></a><var>81.5</var>spouse, or by one of the secondary owners, provided that the person is currently an <br/>
<a id="pl.81.6"></a><var>81.6</var>owner of the property. In this case, the primary owner's spouse or the secondary owner <br/>
<a id="pl.81.7"></a><var>81.7</var>shall be considered the primary owner from that point forward. If neither the primary <br/>
<a id="pl.81.8"></a><var>81.8</var>owner, the primary owner's spouse, or a secondary owner is eligible to file the required <br/>
<a id="pl.81.9"></a><var>81.9</var>annual certification for the property, the property's participation in the program shall be <br/>
<a id="pl.81.10"></a><var>81.10</var>terminated, and the procedures in section 290D.08 apply.<br/>
<a id="pl.81.11"></a><var>81.11</var>    Subd. 5. <b>Annual notice to primary property owner.</b> Annually, on or before <br/>
<a id="pl.81.12"></a><var>81.12</var>September 1, the commissioner shall notify each primary property owner, in writing, of <br/>
<a id="pl.81.13"></a><var>81.13</var>the total cumulative deferred taxes and accrued interest on the qualifying property as of <br/>
<a id="pl.81.14"></a><var>81.14</var>that date.<br/>
<br/>
<a id="bill.7.5.0"></a><a id="pl.81.15"></a><var>81.15</var>    Sec. 5. <b>[290D.05] DEFERRED PROPERTY TAX AMOUNT.</b><br/>
<a id="pl.81.16"></a><var>81.16</var>    Subdivision 1. <b>Calculation of deferred property tax amount.</b> Each year after <br/>
<a id="pl.81.17"></a><var>81.17</var>the county auditor has determined the final property tax rates under section 275.08, the <br/>
<a id="pl.81.18"></a><var>81.18</var>"deferred property tax amount" must be calculated on each eligible property. The deferred <br/>
<a id="pl.81.19"></a><var>81.19</var>property tax amount is equal to 50 percent of the amount of the difference between (1) the <br/>
<a id="pl.81.20"></a><var>81.20</var>total amount of property taxes and special assessments levied upon the eligible property <br/>
<a id="pl.81.21"></a><var>81.21</var>for the current year by all taxing jurisdictions and (2) the eligible property's base property <br/>
<a id="pl.81.22"></a><var>81.22</var>tax amount. Any tax attributable to new improvements made to the eligible property after <br/>
<a id="pl.81.23"></a><var>81.23</var>the initial application has been approved under section 
<statute_ref>290D.04, subdivision 2</statute_ref>, must be <br/>
<a id="pl.81.24"></a><var>81.24</var>excluded in determining the deferred property tax amount. The eligible property's total <br/>
<a id="pl.81.25"></a><var>81.25</var>current year's tax less the deferred property tax amount for the current year must be listed <br/>
<a id="pl.81.26"></a><var>81.26</var>on the property tax statement and is the amount due to the county under chapter 276. <br/>
<a id="pl.81.27"></a><var>81.27</var>Reference that the property is enrolled in the seasonal recreational property tax deferral <br/>
<a id="pl.81.28"></a><var>81.28</var>program under this chapter and a state lien has been recorded must be clearly printed on <br/>
<a id="pl.81.29"></a><var>81.29</var>the statement.<br/>
<a id="pl.81.30"></a><var>81.30</var>    Subd. 2. <b>Certification to commissioner.</b> The county auditor shall annually, on or <br/>
<a id="pl.81.31"></a><var>81.31</var>before April 15, certify to the commissioner the property tax deferral amounts determined <br/>
<a id="pl.81.32"></a><var>81.32</var>under this section for each eligible property in the county. The commissioner shall <br/>
<a id="pl.81.33"></a><var>81.33</var>prescribe the information that is necessary to identify the eligible properties.<br/>
<a id="pl.81.34"></a><var>81.34</var>    Subd. 3. <b>Limitation on total amount of deferred taxes.</b> The total amount of <br/>
<a id="pl.81.35"></a><var>81.35</var>deferred taxes and interest on a property, when added to (1) the balance owed on any <br/>
<a id="pl.82.1"></a><var>82.1</var>mortgages on the property at the time of initial application; (2) other amounts secured by <br/>
<a id="pl.82.2"></a><var>82.2</var>liens on the property at the time of the initial application; and (3) any unpaid and delinquent <br/>
<a id="pl.82.3"></a><var>82.3</var>special assessments and interest and any delinquent property taxes, penalties, and interest, <br/>
<a id="pl.82.4"></a><var>82.4</var>but not including property taxes payable during the year, must not exceed 60 percent of <br/>
<a id="pl.82.5"></a><var>82.5</var>the assessor's estimated market value of the property for the current assessment year.<br/>
<br/>
<a id="bill.7.6.0"></a><a id="pl.82.6"></a><var>82.6</var>    Sec. 6. <b>[290D.06] LIEN; DEFERRED PORTION.</b><br/>
<a id="pl.82.7"></a><var>82.7</var>(a) Payment by the state to the county treasurer of property taxes, penalties, interest, <br/>
<a id="pl.82.8"></a><var>82.8</var>or special assessments and interest, deferred under this chapter, is deemed a loan from the <br/>
<a id="pl.82.9"></a><var>82.9</var>state to the program participant. The commissioner shall compute the interest as provided <br/>
<a id="pl.82.10"></a><var>82.10</var>in section 
<statute_ref>270C.40, subdivision 5</statute_ref>, but not to exceed two percent over the maximum <br/>
<a id="pl.82.11"></a><var>82.11</var>interest rate provided in section 290B.07, paragraph (a), and maintain records of the total <br/>
<a id="pl.82.12"></a><var>82.12</var>deferred amount and interest for each participant. Interest accrues beginning September 1 <br/>
<a id="pl.82.13"></a><var>82.13</var>of the payable year for which the taxes are deferred. Any deferral made under this chapter <br/>
<a id="pl.82.14"></a><var>82.14</var>must not be construed as delinquent property taxes.<br/>
<a id="pl.82.15"></a><var>82.15</var>The lien created under section 
<statute_ref>272.31</statute_ref> continues to secure payment by the taxpayer, <br/>
<a id="pl.82.16"></a><var>82.16</var>or by the taxpayer's successors or assigns, of the amount deferred, including interest, with <br/>
<a id="pl.82.17"></a><var>82.17</var>respect to all years for which amounts are deferred. The lien for deferred taxes and interest <br/>
<a id="pl.82.18"></a><var>82.18</var>has the same priority as any other lien under section 
<statute_ref>272.31</statute_ref>, except that liens, including <br/>
<a id="pl.82.19"></a><var>82.19</var>mortgages, recorded or filed prior to the recording or filing of the notice under section <br/>
<a id="pl.82.20"></a><var>82.20</var><statute_ref>290D.04, subdivision 2</statute_ref>, have priority over the lien for deferred taxes and interest. A <br/>
<a id="pl.82.21"></a><var>82.21</var>seller's interest in a contract for deed, in which a qualifying owner is the purchaser or an <br/>
<a id="pl.82.22"></a><var>82.22</var>assignee of the purchaser, has priority over deferred taxes and interest on deferred taxes, <br/>
<a id="pl.82.23"></a><var>82.23</var>regardless of whether the contract for deed is recorded or filed. The lien for deferred taxes <br/>
<a id="pl.82.24"></a><var>82.24</var>and interest for future years has the same priority as the lien for deferred taxes and interest <br/>
<a id="pl.82.25"></a><var>82.25</var>for the first year, which is always higher in priority than any mortgages or other liens filed, <br/>
<a id="pl.82.26"></a><var>82.26</var>recorded, or created after the notice recorded or filed under section 
<statute_ref>290D.04, subdivision <br/>
<a id="pl.82.27"></a><var>82.27</var>2
</statute_ref>. The county treasurer or auditor shall maintain records of the deferred portion and shall <br/>
<a id="pl.82.28"></a><var>82.28</var>list the amount of deferred taxes for the year and the cumulative deferral and interest for <br/>
<a id="pl.82.29"></a><var>82.29</var>all previous years as a lien against the eligible property. In any certification of unpaid <br/>
<a id="pl.82.30"></a><var>82.30</var>taxes for a tax parcel, the county auditor shall clearly distinguish between taxes payable in <br/>
<a id="pl.82.31"></a><var>82.31</var>the current year, deferred taxes and interest, and delinquent taxes. Payment of the deferred <br/>
<a id="pl.82.32"></a><var>82.32</var>portion becomes due and owing at the time specified in section 
<statute_ref>290D.07</statute_ref>. Upon receipt of <br/>
<a id="pl.82.33"></a><var>82.33</var>the payment, the commissioner shall issue a receipt to the person making the payment <br/>
<a id="pl.82.34"></a><var>82.34</var>upon request and shall notify the auditor of the county in which the parcel is located, <br/>
<a id="pl.82.35"></a><var>82.35</var>within ten days, identifying the parcel to which the payment applies. Upon receipt by the <br/>
<a id="pl.83.1"></a><var>83.1</var>commissioner of collected funds in the amount of the deferral, the state's loan to the <br/>
<a id="pl.83.2"></a><var>83.2</var>program participant is deemed paid in full.<br/>
<a id="pl.83.3"></a><var>83.3</var>(b) If eligible property for which taxes have been deferred under this chapter forfeits <br/>
<a id="pl.83.4"></a><var>83.4</var>under chapter 281 for nonpayment of a nondeferred property tax amount, or because <br/>
<a id="pl.83.5"></a><var>83.5</var>of nonpayment of amounts previously deferred following a termination under section <br/>
<a id="pl.83.6"></a><var>83.6</var><statute_ref>290D.07</statute_ref>, the lien for the taxes deferred under this chapter, plus interest and costs, shall be <br/>
<a id="pl.83.7"></a><var>83.7</var>canceled by the county auditor as provided in section 
<statute_ref>282.07</statute_ref>. However, notwithstanding <br/>
<a id="pl.83.8"></a><var>83.8</var>any other law to the contrary, any proceeds from a subsequent sale of the eligible property <br/>
<a id="pl.83.9"></a><var>83.9</var>under chapter 282 or another law, must be used to first reimburse the county's forfeited <br/>
<a id="pl.83.10"></a><var>83.10</var>tax sale fund for any direct costs of selling the eligible property or any costs directly <br/>
<a id="pl.83.11"></a><var>83.11</var>related to preparing the eligible property for sale, and then to reimburse the state for <br/>
<a id="pl.83.12"></a><var>83.12</var>the amount of the canceled lien. Within 90 days of the receipt of any sale proceeds to <br/>
<a id="pl.83.13"></a><var>83.13</var>which the state is entitled under these provisions, the county auditor must pay those funds <br/>
<a id="pl.83.14"></a><var>83.14</var>to the commissioner by warrant for deposit in the general fund. No other deposit, use, <br/>
<a id="pl.83.15"></a><var>83.15</var>distribution, or release of gross sale proceeds or receipts may be made by the county until <br/>
<a id="pl.83.16"></a><var>83.16</var>payments sufficient to fully reimburse the state for the canceled lien amount have been <br/>
<a id="pl.83.17"></a><var>83.17</var>transmitted to the commissioner.<br/>
<br/>
<a id="bill.7.7.0"></a><a id="pl.83.18"></a><var>83.18</var>    Sec. 7. <b>[290D.07] TERMINATION OF DEFERRAL; PAYMENT OF DEFERRED </b><br/>
<a id="pl.83.19"></a><var>83.19</var><b>TAXES.</b><br/>
<a id="pl.83.20"></a><var>83.20</var>    Subdivision 1. <b>Termination.</b> (a) The deferral of taxes granted under this chapter <br/>
<a id="pl.83.21"></a><var>83.21</var>terminates when one of the following occurs:<br/>
<a id="pl.83.22"></a><var>83.22</var>(1) the eligible property is sold or transferred to someone other than the primary <br/>
<a id="pl.83.23"></a><var>83.23</var>owner's spouse or a secondary owner;<br/>
<a id="pl.83.24"></a><var>83.24</var>(2) the death of the primary owner, or in the case of a married couple, after the <br/>
<a id="pl.83.25"></a><var>83.25</var>death of both spouses, provided that there is not a secondary owner eligible to become <br/>
<a id="pl.83.26"></a><var>83.26</var>the primary owner;<br/>
<a id="pl.83.27"></a><var>83.27</var>(3) the primary property owner notifies the commissioner, in writing, that all owners, <br/>
<a id="pl.83.28"></a><var>83.28</var>including any secondary property owners, desire to discontinue the deferral; or<br/>
<a id="pl.83.29"></a><var>83.29</var>(4) the eligible property no longer qualifies under section 290D.03.<br/>
<a id="pl.83.30"></a><var>83.30</var>(b) An eligible property is not terminated from the program because no deferred <br/>
<a id="pl.83.31"></a><var>83.31</var>property tax amount is determined for any given year after the eligible property's initial <br/>
<a id="pl.83.32"></a><var>83.32</var>enrollment into the program.<br/>
<a id="pl.83.33"></a><var>83.33</var>(c) An eligible property is not terminated from the program if the eligible property <br/>
<a id="pl.83.34"></a><var>83.34</var>subsequently becomes the homestead of one or more of the property owners and the <br/>
<a id="pl.84.1"></a><var>84.1</var>property and the owners qualify for, and are immediately enrolled in, the senior deferral <br/>
<a id="pl.84.2"></a><var>84.2</var>program under chapter 290B.<br/>
<a id="pl.84.3"></a><var>84.3</var>    Subd. 2. <b>Payment upon termination.</b> Upon the termination of the deferral under <br/>
<a id="pl.84.4"></a><var>84.4</var>subdivision 1, the amount of deferred taxes, penalties, interest, and special assessments <br/>
<a id="pl.84.5"></a><var>84.5</var>and interest, plus the recording or filing fees under this subdivision and section 
<statute_ref>290D.04, <br/>
<a id="pl.84.6"></a><var>84.6</var>subdivision 2
</statute_ref>, becomes due and payable to the commissioner within 90 days of termination <br/>
<a id="pl.84.7"></a><var>84.7</var>of the deferral for terminations under subdivision 1, paragraph (a), clauses (1) and (2), <br/>
<a id="pl.84.8"></a><var>84.8</var>and within one year of termination of the deferral for terminations under subdivision 1, <br/>
<a id="pl.84.9"></a><var>84.9</var>paragraph (a), clauses (3) and (4). No additional interest is due on the deferral if timely <br/>
<a id="pl.84.10"></a><var>84.10</var>paid. On receipt of payment, the commissioner shall, within ten days, notify the auditor <br/>
<a id="pl.84.11"></a><var>84.11</var>of the county in which the parcel is located, identifying the parcel to which the payment <br/>
<a id="pl.84.12"></a><var>84.12</var>applies, and shall remit the recording or filing fees under this subdivision and section <br/>
<a id="pl.84.13"></a><var>84.13</var><statute_ref>290D.04, subdivision 2</statute_ref>, to the auditor. A notice of termination of deferral, containing the <br/>
<a id="pl.84.14"></a><var>84.14</var>legal description and the recording or filing data for the notice of qualification for deferral <br/>
<a id="pl.84.15"></a><var>84.15</var>under section 
<statute_ref>290D.04, subdivision 2</statute_ref>, shall be prepared and recorded or filed by the <br/>
<a id="pl.84.16"></a><var>84.16</var>county auditor in the same office in which the notice of qualification for deferral under <br/>
<a id="pl.84.17"></a><var>84.17</var>section 
<statute_ref>290D.04, subdivision 2</statute_ref>, was recorded or filed, and the county auditor shall mail a <br/>
<a id="pl.84.18"></a><var>84.18</var>copy of the notice of termination to the property owner. The property owner shall pay the <br/>
<a id="pl.84.19"></a><var>84.19</var>recording or filing fees. Upon recording or filing of the notice of termination of deferral, <br/>
<a id="pl.84.20"></a><var>84.20</var>the notice of qualification for deferral under section 
<statute_ref>290D.04, subdivision 2</statute_ref>, and the lien <br/>
<a id="pl.84.21"></a><var>84.21</var>created by it are discharged. If the deferral is not timely paid, the penalty, interest, lien, <br/>
<a id="pl.84.22"></a><var>84.22</var>forfeiture, and other rules for the collection of ad valorem property taxes apply. <br/>
<br/>
<a id="bill.7.8.0"></a><a id="pl.84.23"></a><var>84.23</var>    Sec. 8. <b>[290D.08] STATE REIMBURSEMENT.</b><br/>
<a id="pl.84.24"></a><var>84.24</var>    Subdivision 1. <b>Determination; payment.</b> The county auditor shall determine the <br/>
<a id="pl.84.25"></a><var>84.25</var>total current year's deferred amount of property tax under this chapter in the county, and <br/>
<a id="pl.84.26"></a><var>84.26</var>submit those amounts as part of the abstracts of tax lists submitted by the county auditors <br/>
<a id="pl.84.27"></a><var>84.27</var>under section 
<statute_ref>275.29</statute_ref>. The commissioner may make changes in the abstracts of tax lists as <br/>
<a id="pl.84.28"></a><var>84.28</var>deemed necessary. The commissioner, after such review, shall pay the deferred amount of <br/>
<a id="pl.84.29"></a><var>84.29</var>property tax to each county treasurer on or before August 31. <br/>
<a id="pl.84.30"></a><var>84.30</var>The county treasurer shall distribute as part of the October settlement the funds <br/>
<a id="pl.84.31"></a><var>84.31</var>received as if they had been collected as part of the property tax.<br/>
<a id="pl.84.32"></a><var>84.32</var>    Subd. 2. <b>Appropriation.</b> An amount sufficient to pay the total amount of property <br/>
<a id="pl.84.33"></a><var>84.33</var>tax determined under subdivision 1, plus any other amounts paid under this chapter, is <br/>
<a id="pl.84.34"></a><var>84.34</var>annually appropriated from the general fund to the commissioner.<br/>
<br/>
<a id="bill.7.9.0"></a><a id="pl.85.1"></a><var>85.1</var>    Sec. 9. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.85.2"></a><var>85.2</var>Sections 1 to 8 are effective for applications filed July 1, 2009, and thereafter.<br/>
<br/>
<a id="bill.8.0.0"></a>

<a id="bill.8.1.0"></a><a id="pl.85.5"></a><var>85.5</var>    Section 1. Minnesota Statutes 2008, section 275.07, is amended by adding a <br/>
<a id="pl.85.6"></a><var>85.6</var>subdivision to read:<br/>
<a id="pl.85.7"></a><var>85.7</var>    Subd. 6. <b>Recertification due to unallotment.</b> If a local government's December <br/>
<a id="pl.85.8"></a><var>85.8</var>aid or credit payments under sections 273.1384 and 477A.011 to 477A.014 are reduced <br/>
<a id="pl.85.9"></a><var>85.9</var>due to unallotment under section 16A.152, the local government may recertify its levy <br/>
<a id="pl.85.10"></a><var>85.10</var>under subdivision 1 by January 15 of the year in which the levy is paid. The local <br/>
<a id="pl.85.11"></a><var>85.11</var>government must report the recertified amount to the county auditor within two business <br/>
<a id="pl.85.12"></a><var>85.12</var>days of January 15 or the levy shall remain at the amount certified under subdivision 1. <br/>
<a id="pl.85.13"></a><var>85.13</var>Notwithstanding subdivision 4, the county auditor shall report to the commissioner of <br/>
<a id="pl.85.14"></a><var>85.14</var>revenue any recertified levies under this subdivision by January 30 of the year in which <br/>
<a id="pl.85.15"></a><var>85.15</var>the levy is paid.<br/>
<a id="pl.85.16"></a><var>85.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.2.0"></a><a id="pl.85.17"></a><var>85.17</var>    Sec. 2. Minnesota Statutes 2008, section 275.70, subdivision 5, is amended to read:<br/>
<a id="pl.85.18"></a><var>85.18</var>    Subd. 5. <b>Special levies.</b> "Special levies" means those portions of ad valorem taxes <br/>
<a id="pl.85.19"></a><var>85.19</var>levied by a local governmental unit for the following purposes or in the following manner:<br/>
<a id="pl.85.20"></a><var>85.20</var>    (1) to pay the costs of the principal and interest on bonded indebtedness or to <br/>
<a id="pl.85.21"></a><var>85.21</var>reimburse for the amount of liquor store revenues used to pay the principal and interest <br/>
<a id="pl.85.22"></a><var>85.22</var>due on municipal liquor store bonds in the year preceding the year for which the levy <br/>
<a id="pl.85.23"></a><var>85.23</var>limit is calculated;<br/>
<a id="pl.85.24"></a><var>85.24</var>    (2) to pay the costs of principal and interest on certificates of indebtedness issued for <br/>
<a id="pl.85.25"></a><var>85.25</var>any corporate purpose except for the following:<br/>
<a id="pl.85.26"></a><var>85.26</var>    (i) tax anticipation or aid anticipation certificates of indebtedness;<br/>
<a id="pl.85.27"></a><var>85.27</var>    (ii) certificates of indebtedness issued under sections 
         <statute_ref>298.28</statute_ref> and 
         <statute_ref>298.282</statute_ref>;<br/>
<a id="pl.85.28"></a><var>85.28</var>    (iii) certificates of indebtedness used to fund current expenses or to pay the costs of <br/>
<a id="pl.85.29"></a><var>85.29</var>extraordinary expenditures that result from a public emergency; or<br/>
<a id="pl.85.30"></a><var>85.30</var>    (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or <br/>
<a id="pl.85.31"></a><var>85.31</var>an insufficiency in other revenue sources;<br/>
<a id="pl.85.32"></a><var>85.32</var>    (3) to provide for the bonded indebtedness portion of payments made to another <br/>
<a id="pl.85.33"></a><var>85.33</var>political subdivision of the state of Minnesota;<br/>
<a id="pl.86.1"></a><var>86.1</var>    (4) to fund payments made to the Minnesota State Armory Building Commission <br/>
<a id="pl.86.2"></a><var>86.2</var>under section 
         <statute_ref>193.145, subdivision 2</statute_ref>, to retire the principal and interest on armory <br/>
<a id="pl.86.3"></a><var>86.3</var>construction bonds;<br/>
<a id="pl.86.4"></a><var>86.4</var>    (5) property taxes approved by voters which are levied against the referendum <br/>
<a id="pl.86.5"></a><var>86.5</var>market value as provided under section 
         <statute_ref>275.61</statute_ref>;<br/>
<a id="pl.86.6"></a><var>86.6</var>    (6) to fund matching requirements needed to qualify for federal or state grants or <br/>
<a id="pl.86.7"></a><var>86.7</var>programs to the extent that either (i) the matching requirement exceeds the matching <br/>
<a id="pl.86.8"></a><var>86.8</var>requirement in calendar year 2001, or (ii) it is a new matching requirement that did not <br/>
<a id="pl.86.9"></a><var>86.9</var>exist prior to 2002;<br/>
<a id="pl.86.10"></a><var>86.10</var>    (7) to pay the expenses reasonably and necessarily incurred in preparing for or <br/>
<a id="pl.86.11"></a><var>86.11</var>repairing the effects of natural disaster including the occurrence or threat of widespread <br/>
<a id="pl.86.12"></a><var>86.12</var>or severe damage, injury, or loss of life or property resulting from natural causes, in <br/>
<a id="pl.86.13"></a><var>86.13</var>accordance with standards formulated by the Emergency Services Division of the state <br/>
<a id="pl.86.14"></a><var>86.14</var>Department of Public Safety, as allowed by the commissioner of revenue under section <br/>
<statute_ref><a id="pl.86.15"></a><var>86.15</var>275.74, subdivision 2
         </statute_ref>;<br/>
<a id="pl.86.16"></a><var>86.16</var>    (8) pay amounts required to correct an error in the levy certified to the county <br/>
<a id="pl.86.17"></a><var>86.17</var>auditor by a city or county in a levy year, but only to the extent that when added to the <br/>
<a id="pl.86.18"></a><var>86.18</var>preceding year's levy it is not in excess of an applicable statutory, special law or charter <br/>
<a id="pl.86.19"></a><var>86.19</var>limitation, or the limitation imposed on the governmental subdivision by sections 
         <statute_ref>275.70 <br/>
</statute_ref><a id="pl.86.20"></a><var>86.20</var>to 
         <statute_ref>275.74</statute_ref> in the preceding levy year;<br/>
<a id="pl.86.21"></a><var>86.21</var>    (9) to pay an abatement under section 
         <statute_ref>469.1815</statute_ref>;<br/>
<a id="pl.86.22"></a><var>86.22</var>    (10) to pay any costs attributable to increases in the employer contribution rates <br/>
<a id="pl.86.23"></a><var>86.23</var>under chapter 353, or locally administered pension plans, that are effective after June <br/>
<a id="pl.86.24"></a><var>86.24</var>30, 2001;<br/>
<a id="pl.86.25"></a><var>86.25</var>    (11) to pay the operating or maintenance costs of a county jail as authorized in <br/>
<a id="pl.86.26"></a><var>86.26</var>section 
         <statute_ref>641.01</statute_ref> or 
         <statute_ref>641.262</statute_ref>, or of a correctional facility as defined in section 
         <statute_ref>241.021, <br/>
<a id="pl.86.27"></a><var>86.27</var>subdivision 1
         </statute_ref>, paragraph (f), to the extent that the county can demonstrate to the <br/>
<a id="pl.86.28"></a><var>86.28</var>commissioner of revenue that the amount has been included in the county budget as <br/>
<a id="pl.86.29"></a><var>86.29</var>a direct result of a rule, minimum requirement, minimum standard, or directive of the <br/>
<a id="pl.86.30"></a><var>86.30</var>Department of Corrections, or to pay the operating or maintenance costs of a regional jail <br/>
<a id="pl.86.31"></a><var>86.31</var>as authorized in section 
         <statute_ref>641.262</statute_ref>. For purposes of this clause, a district court order is <br/>
<a id="pl.86.32"></a><var>86.32</var>not a rule, minimum requirement, minimum standard, or directive of the Department of <br/>
<a id="pl.86.33"></a><var>86.33</var>Corrections. If the county utilizes this special levy, except to pay operating or maintenance <br/>
<a id="pl.86.34"></a><var>86.34</var>costs of a new regional jail facility under sections 
         <statute_ref>641.262</statute_ref> to 
         <statute_ref>641.264</statute_ref> which will not <br/>
<a id="pl.86.35"></a><var>86.35</var>replace an existing jail facility, any amount levied by the county in the previous levy year <br/>
<a id="pl.86.36"></a><var>86.36</var>for the purposes specified under this clause and included in the county's previous year's <br/>
<a id="pl.87.1"></a><var>87.1</var>levy limitation computed under section 
         <statute_ref>275.71</statute_ref>, shall be deducted from the levy limit <br/>
<a id="pl.87.2"></a><var>87.2</var>base under section 
         <statute_ref>275.71, subdivision 2</statute_ref>, when determining the county's current year <br/>
<a id="pl.87.3"></a><var>87.3</var>levy limitation. The county shall provide the necessary information to the commissioner <br/>
<a id="pl.87.4"></a><var>87.4</var>of revenue for making this determination;<br/>
<a id="pl.87.5"></a><var>87.5</var>    (12) to pay for operation of a lake improvement district, as authorized under section <br/>
<statute_ref><a id="pl.87.6"></a><var>87.6</var>103B.555
         </statute_ref>. If the county utilizes this special levy, any amount levied by the county in the <br/>
<a id="pl.87.7"></a><var>87.7</var>previous levy year for the purposes specified under this clause and included in the county's <br/>
<a id="pl.87.8"></a><var>87.8</var>previous year's levy limitation computed under section 
         <statute_ref>275.71</statute_ref> shall be deducted from <br/>
<a id="pl.87.9"></a><var>87.9</var>the levy limit base under section 
         <statute_ref>275.71, subdivision 2</statute_ref>, when determining the county's <br/>
<a id="pl.87.10"></a><var>87.10</var>current year levy limitation. The county shall provide the necessary information to the <br/>
<a id="pl.87.11"></a><var>87.11</var>commissioner of revenue for making this determination;<br/>
<a id="pl.87.12"></a><var>87.12</var>    (13) to repay a state or federal loan used to fund the direct or indirect required <br/>
<a id="pl.87.13"></a><var>87.13</var>spending by the local government due to a state or federal transportation project or other <br/>
<a id="pl.87.14"></a><var>87.14</var>state or federal capital project. This authority may only be used if the project is not a <br/>
<a id="pl.87.15"></a><var>87.15</var>local government initiative;<br/>
<a id="pl.87.16"></a><var>87.16</var>    (14) to pay for court administration costs as required under section 
         <statute_ref>273.1398, <br/>
<a id="pl.87.17"></a><var>87.17</var>subdivision 4b
         </statute_ref>, less the (i) county's share of transferred fines and fees collected by the <br/>
<a id="pl.87.18"></a><var>87.18</var>district courts in the county for calendar year 2001 and (ii) the aid amount certified to be <br/>
<a id="pl.87.19"></a><var>87.19</var>paid to the county in 2004 under section 
         <statute_ref>273.1398, subdivision 4c</statute_ref>; however, for taxes <br/>
<a id="pl.87.20"></a><var>87.20</var>levied to pay for these costs in the year in which the court financing is transferred to the <br/>
<a id="pl.87.21"></a><var>87.21</var>state, the amount under this clause is limited to the amount of aid the county is certified to <br/>
<a id="pl.87.22"></a><var>87.22</var>receive under section 
         <statute_ref>273.1398, subdivision 4a</statute_ref>;<br/>
<a id="pl.87.23"></a><var>87.23</var>    (15) to fund a police or firefighters relief association as required under section 
         <statute_ref>69.77 <br/>
</statute_ref><a id="pl.87.24"></a><var>87.24</var>to the extent that the required amount exceeds the amount levied for this purpose in 2001;<br/>
<a id="pl.87.25"></a><var>87.25</var>    (16) for purposes of a storm sewer improvement district under section 
         <statute_ref>444.20</statute_ref>; <br/>
<a id="pl.87.26"></a><var>87.26</var>    (17) to pay for the maintenance and support of a city or county society for the <br/>
<a id="pl.87.27"></a><var>87.27</var>prevention of cruelty to animals under section 
         <statute_ref>343.11</statute_ref>. If the city or county uses this <br/>
<a id="pl.87.28"></a><var>87.28</var>special levy, any amount levied by the city or county in the previous levy year for the <br/>
<a id="pl.87.29"></a><var>87.29</var>purposes specified in this clause and included in the city's or county's previous year's levy <br/>
<a id="pl.87.30"></a><var>87.30</var>limit computed under section 
         <statute_ref>275.71</statute_ref>, must be deducted from the levy limit base under <br/>
<a id="pl.87.31"></a><var>87.31</var>section 
         <statute_ref>275.71, subdivision 2</statute_ref>, in determining the city's or county's current year levy limit; <br/>
<a id="pl.87.32"></a><var>87.32</var>    (18) for counties, to pay for the increase in their share of health and human service <br/>
<a id="pl.87.33"></a><var>87.33</var>costs caused by reductions in federal health and human services grants effective after <br/>
<a id="pl.87.34"></a><var>87.34</var>September 30, 2007;<br/>
<a id="pl.87.35"></a><var>87.35</var>    (19) for a city, for the costs reasonably and necessarily incurred for securing, <br/>
<a id="pl.87.36"></a><var>87.36</var>maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by <br/>
<a id="pl.88.1"></a><var>88.1</var>the commissioner of revenue under section 
         <statute_ref>275.74, subdivision 2</statute_ref>. A city must have either <br/>
<a id="pl.88.2"></a><var>88.2</var>(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in <br/>
<a id="pl.88.3"></a><var>88.3</var>the city or in a zip code area of the city that is at least 50 percent higher than the average <br/>
<a id="pl.88.4"></a><var>88.4</var>foreclosure rate in the metropolitan area, as defined in section 
         <statute_ref>473.121</statute_ref>, subdivision 2, <br/>
<a id="pl.88.5"></a><var>88.5</var>to use this special levy. For purposes of this paragraph, "foreclosure rate" means the <br/>
<a id="pl.88.6"></a><var>88.6</var>number of foreclosures, as indicated by sheriff sales records, divided by the number of <br/>
<a id="pl.88.7"></a><var>88.7</var>households in the city in 2007;<br/>
<a id="pl.88.8"></a><var>88.8</var>    (20) for a city, for the unreimbursed costs of redeployed traffic control agents and <br/>
<a id="pl.88.9"></a><var>88.9</var>lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified <br/>
<a id="pl.88.10"></a><var>88.10</var>to the Federal Highway Administration;<br/>
<a id="pl.88.11"></a><var>88.11</var>    (21) to pay costs attributable to wages and benefits for sheriff, police, and fire <br/>
<a id="pl.88.12"></a><var>88.12</var>personnel. If a local governmental unit did not use this special levy in the previous year its <br/>
<a id="pl.88.13"></a><var>88.13</var>levy limit base under section 
         <statute_ref>275.71</statute_ref> shall be reduced by the amount equal to the amount it <br/>
<a id="pl.88.14"></a><var>88.14</var>levied for the purposes specified in this clause in the previous year; and<br/>
<a id="pl.88.15"></a><var>88.15</var>    (22) an amount equal to any reductions in the certified aids or credits payable <br/>
<a id="pl.88.16"></a><var>88.16</var>under sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.014</statute_ref>, and section 
         <statute_ref>273.1384</statute_ref>, due to unallotment under <br/>
<a id="pl.88.17"></a><var>88.17</var>section 
         <statute_ref>16A.152</statute_ref> in any year, reductions in aids under chapter 477A, that are enacted <br/>
<a id="pl.88.18"></a><var>88.18</var>by the legislature in the year in which the aid is paid, and reductions to credits under <br/>
<a id="pl.88.19"></a><var>88.19</var>section 273.1384 enacted by the legislature in any year. The amount of the levy allowed <br/>
<a id="pl.88.20"></a><var>88.20</var>under this clause is equal to the amount unallotted or reduced in the calendar year in <br/>
<a id="pl.88.21"></a><var>88.21</var>which the tax is levied unless the unallotment amount is not known by September 1 of <br/>
<a id="pl.88.22"></a><var>88.22</var>the levy year, and the local government has not adjusted its levy under section 275.065, <br/>
<a id="pl.88.23"></a><var>88.23</var>subdivision 6, or 275.07, subdivision 6, in which case the unallotment amount may be <br/>
<a id="pl.88.24"></a><var>88.24</var>levied in the following year.;<br/>
<a id="pl.88.25"></a><var>88.25</var>(23) to pay for the difference between one-half of the costs of confining sex offenders <br/>
<a id="pl.88.26"></a><var>88.26</var>undergoing the civil commitment process and any state payments for this purpose pursuant <br/>
<a id="pl.88.27"></a><var>88.27</var>to section 253B.185, subdivision 5; and<br/>
<a id="pl.88.28"></a><var>88.28</var>(24) for a county to pay the costs of the first year of maintaining and operating a new <br/>
<a id="pl.88.29"></a><var>88.29</var>facility or new expansion, either of which contains courts, corrections, dispatch, criminal <br/>
<a id="pl.88.30"></a><var>88.30</var>investigation labs, or other public safety facilities and for which all or a portion of the <br/>
<a id="pl.88.31"></a><var>88.31</var>funding for the site acquisition, building design, site preparation, construction, and related <br/>
<a id="pl.88.32"></a><var>88.32</var>equipment was issued or authorized prior to the imposition of levy limits in 2008. The <br/>
<a id="pl.88.33"></a><var>88.33</var>levy limit base shall then be increased by an amount equal to the new facility's first full <br/>
<a id="pl.88.34"></a><var>88.34</var>year's operating costs as described in this clause.<br/>
<a id="pl.88.35"></a><var>88.35</var><b>EFFECTIVE DATE.</b>This section is effective for levies certified in calendar year <br/>
<a id="pl.88.36"></a><var>88.36</var>2009 and thereafter, payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.8.3.0"></a><a id="pl.89.1"></a><var>89.1</var>    Sec. 3. <b>[475.755] EMERGENCY DEBT CERTIFICATES.</b><br/>
<a id="pl.89.2"></a><var>89.2</var>(a) If at any time during a fiscal year the receipts of a local government are <br/>
<a id="pl.89.3"></a><var>89.3</var>reasonably expected to be reduced below the amount provided in the local government's <br/>
<a id="pl.89.4"></a><var>89.4</var>budget when the final property tax levy to be collected during the fiscal year was certified <br/>
<a id="pl.89.5"></a><var>89.5</var>and the receipts are insufficient to meet the expenses incurred or to be incurred during the <br/>
<a id="pl.89.6"></a><var>89.6</var>fiscal year, the governing body of the local government may authorize and sell certificates <br/>
<a id="pl.89.7"></a><var>89.7</var>of indebtedness to mature within two years or less from the end of the fiscal year in which <br/>
<a id="pl.89.8"></a><var>89.8</var>the certificates are issued. The maximum principal amount of the certificates that it may <br/>
<a id="pl.89.9"></a><var>89.9</var>issue in a fiscal year is limited to the expected reduction in receipts plus the cost of <br/>
<a id="pl.89.10"></a><var>89.10</var>issuance. The certificates may be issued in the manner and on the terms the governing <br/>
<a id="pl.89.11"></a><var>89.11</var>body determines by resolution. <br/>
<a id="pl.89.12"></a><var>89.12</var>(b) The governing body of the local government shall levy taxes for the payment of <br/>
<a id="pl.89.13"></a><var>89.13</var>principal and interest on the certificates in accordance with section 475.61.<br/>
<a id="pl.89.14"></a><var>89.14</var>(c) The certificates are not to be included in the net debt of the issuing local <br/>
<a id="pl.89.15"></a><var>89.15</var>government. <br/>
<a id="pl.89.16"></a><var>89.16</var>    (d) To the extent that a local government issues certificates under this section to fund <br/>
<a id="pl.89.17"></a><var>89.17</var>an unallotment or other reduction in its state aid, the local government may not use a <br/>
<a id="pl.89.18"></a><var>89.18</var>special levy for the aid reduction under section 275.70, subdivision 5, clause (22), or a <br/>
<a id="pl.89.19"></a><var>89.19</var>similar or successor provision. This provision does not affect the status of the levy under <br/>
<a id="pl.89.20"></a><var>89.20</var>section 475.61 to pay the certificates as a levy that is not subject to levy limits.<br/>
<a id="pl.89.21"></a><var>89.21</var>(e) For purposes of this section, the following terms have the meanings given:<br/>
<a id="pl.89.22"></a><var>89.22</var>(1) "Local government" means a statutory or home rule charter city, a town, or <br/>
<a id="pl.89.23"></a><var>89.23</var>a county.<br/>
<a id="pl.89.24"></a><var>89.24</var>(2) "Receipts" includes the following amounts scheduled to be received by the <br/>
<a id="pl.89.25"></a><var>89.25</var>local government for the fiscal year from:<br/>
<a id="pl.89.26"></a><var>89.26</var>(i) taxes;<br/>
<a id="pl.89.27"></a><var>89.27</var>(ii) aid payments previously certified by the state to be paid to the local government;<br/>
<a id="pl.89.28"></a><var>89.28</var>(iii) state reimbursement payments for property tax credits; and<br/>
<a id="pl.89.29"></a><var>89.29</var>(iv) any other source.<br/>
<a id="pl.89.30"></a><var>89.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.4.0"></a><a id="pl.89.31"></a><var>89.31</var>    Sec. 4. Laws 1986, chapter 400, section 44, as amended by Laws 1995, chapter 264, <br/>
<a id="pl.89.32"></a><var>89.32</var>article 2, section 39, is amended to read:<br/>
<a id="pl.89.33"></a><var>89.33</var>    Sec. 44. <b>DOWNTOWN TAXING AREA.</b><br/>
<a id="pl.89.34"></a><var>89.34</var>    If a bill is enacted into law in the 1986 legislative session which authorizes the city <br/>
<a id="pl.89.35"></a><var>89.35</var>of Minneapolis to issue bonds and expend certain funds including taxes to finance the <br/>
<a id="pl.90.1"></a><var>90.1</var>acquisition and betterment of a convention center and related facilities, which authorizes <br/>
<a id="pl.90.2"></a><var>90.2</var>certain taxes to be levied in a downtown taxing area, then, notwithstanding the provisions <br/>
<a id="pl.90.3"></a><var>90.3</var>of that law "downtown taxing area" shall mean the geographic area bounded by the <br/>
<a id="pl.90.4"></a><var>90.4</var>portion of the Mississippi River between I-35W and Washington Avenue, the portion <br/>
<a id="pl.90.5"></a><var>90.5</var>of Washington Avenue between the river and I-35W, the portion of I-35W between <br/>
<a id="pl.90.6"></a><var>90.6</var>Washington Avenue and 8th Street South, the portion of 8th Street South between I-35W <br/>
<a id="pl.90.7"></a><var>90.7</var>and Portland Avenue South, the portion of Portland Avenue South between 8th Street <br/>
<a id="pl.90.8"></a><var>90.8</var>South and I-94, the portion of I-94 from the intersection of Portland Avenue South to <br/>
<a id="pl.90.9"></a><var>90.9</var>the intersection of I-94 and the Burlington Northern Railroad tracks, the portion of the <br/>
<a id="pl.90.10"></a><var>90.10</var>Burlington Northern Railroad tracks from I-94 to Main Street and including Nicollet <br/>
<a id="pl.90.11"></a><var>90.11</var>Island, and the portion of Main Street to Hennepin Avenue and the portion of Hennepin <br/>
<a id="pl.90.12"></a><var>90.12</var>Avenue between Main Street and 2nd Street S.E., and the portion of 2nd Street S.E. <br/>
<a id="pl.90.13"></a><var>90.13</var>between Main Street and Bank Street, and the portion of Bank Street between 2nd Street <br/>
<a id="pl.90.14"></a><var>90.14</var>S.E. and University Avenue S.E., and the portion of University Avenue S.E. between Bank <br/>
<a id="pl.90.15"></a><var>90.15</var>Street and I-35W, and by I-35W from University Avenue S.E., to the river. The downtown <br/>
<a id="pl.90.16"></a><var>90.16</var>taxing area excludes the area bounded on the south and west by Oak Grove Street, on the <br/>
<a id="pl.90.17"></a><var>90.17</var>east by Spruce Place, and on the north by West 15th Street. The downtown taxing area <br/>
<a id="pl.90.18"></a><var>90.18</var>also excludes any property located in a zoned area that is contained in chapter 546 of the <br/>
<a id="pl.90.19"></a><var>90.19</var>Minneapolis zone code of ordinances on which a restaurant or liquor establishment is <br/>
<a id="pl.90.20"></a><var>90.20</var>operated.<br/>
<a id="pl.90.21"></a><var>90.21</var><b>EFFECTIVE DATE.</b>This section is effective for sales made after July 31, 2012, <br/>
<a id="pl.90.22"></a><var>90.22</var>provided that the proceeds of the tax collected between July 1, 2009, and July 31, 2012, <br/>
<a id="pl.90.23"></a><var>90.23</var>by a restaurant or liquor establishment that is excluded from the downtown taxing area <br/>
<a id="pl.90.24"></a><var>90.24</var>by this section, when collected by the commissioner of revenue, shall be deposited in the <br/>
<a id="pl.90.25"></a><var>90.25</var>general fund of the state treasury.<br/>
<br/>
<a id="bill.8.5.0"></a><a id="pl.90.26"></a><var>90.26</var>    Sec. 5. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by <br/>
<a id="pl.90.27"></a><var>90.27</var>Laws 1998, chapter 389, article 8, section 28, and Laws 2008, chapter 366, article 7, <br/>
<a id="pl.90.28"></a><var>90.28</var>section 9, is amended to read:<br/>
<a id="pl.90.29"></a><var>90.29</var>    Subd. 3.  <b>Use of revenues.</b> Revenues received from taxes authorized by subdivisions <br/>
<a id="pl.90.30"></a><var>90.30</var>1 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or <br/>
<a id="pl.90.31"></a><var>90.31</var>a portion of the expenses of constructing and improving facilities as part of an urban <br/>
<a id="pl.90.32"></a><var>90.32</var>revitalization project in downtown Mankato known as Riverfront 2000. Authorized <br/>
<a id="pl.90.33"></a><var>90.33</var>expenses include, but are not limited to, acquiring property and paying relocation expenses <br/>
<a id="pl.90.34"></a><var>90.34</var>related to the development of Riverfront 2000 and related facilities, and securing or paying <br/>
<a id="pl.90.35"></a><var>90.35</var>debt service on bonds or other obligations issued to finance the construction of Riverfront <br/>
<a id="pl.91.1"></a><var>91.1</var>2000 and related facilities. For purposes of this section, "Riverfront 2000 and related <br/>
<a id="pl.91.2"></a><var>91.2</var>facilities" means a civic-convention center, an arena, a riverfront park, a technology center <br/>
<a id="pl.91.3"></a><var>91.3</var>and related educational facilities, and all publicly owned real or personal property that <br/>
<a id="pl.91.4"></a><var>91.4</var>the governing body of the city determines will be necessary to facilitate the use of these <br/>
<a id="pl.91.5"></a><var>91.5</var>facilities, including but not limited to parking, skyways, pedestrian bridges, lighting, and <br/>
<a id="pl.91.6"></a><var>91.6</var>landscaping. It also includes the performing arts theatre and the Southern Minnesota <br/>
<a id="pl.91.7"></a><var>91.7</var>Women's Hockey Exposition Center, attached to the Mankato Civic Center for use by <br/>
<a id="pl.91.8"></a><var>91.8</var>Minnesota State University, Mankato.<br/>
<a id="pl.91.9"></a><var>91.9</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.91.10"></a><var>91.10</var>the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section <br/>
<a id="pl.91.11"></a><var>91.11</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.8.6.0"></a><a id="pl.91.12"></a><var>91.12</var>    Sec. 6. Laws 2002, chapter 377, article 3, section 25, is amended to read:<br/>
<a id="pl.91.13"></a><var>91.13</var>    Sec. 25. <b>ROCHESTER LODGING TAX.</b><br/>
<a id="pl.91.14"></a><var>91.14</var>    Subdivision 1. <b>Authorization.</b> Notwithstanding Minnesota Statutes, section <br/>
<statute_ref><a id="pl.91.15"></a><var>91.15</var>469.190
         </statute_ref> or 
         <statute_ref>477A.016</statute_ref>, or any other law, the city of Rochester may impose an additional <br/>
<a id="pl.91.16"></a><var>91.16</var>tax of one percent on the gross receipts from the furnishing for consideration of lodging at <br/>
<a id="pl.91.17"></a><var>91.17</var>a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it <br/>
<a id="pl.91.18"></a><var>91.18</var>for a continuous period of 30 days or more.<br/>
<a id="pl.91.19"></a><var>91.19</var>    Subd. 1a. <b>Authorization.</b> Notwithstanding Minnesota Statutes, section 469.190 or <br/>
<a id="pl.91.20"></a><var>91.20</var>477A.016, or any other law, and in addition to the tax authorized by subdivision 1, the city <br/>
<a id="pl.91.21"></a><var>91.21</var>of Rochester may impose an additional tax of one percent on the gross receipts from the <br/>
<a id="pl.91.22"></a><var>91.22</var>furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or <br/>
<a id="pl.91.23"></a><var>91.23</var>resort, other than the renting or leasing of it for a continuous period of 30 days or more <br/>
<a id="pl.91.24"></a><var>91.24</var>only upon (1) enactment of a law appropriating state money for construction costs of <br/>
<a id="pl.91.25"></a><var>91.25</var>renovating, improving, or expanding the Mayo Civic Center Complex; and (2) approval of <br/>
<a id="pl.91.26"></a><var>91.26</var>the city governing body of a total financial package for the project.<br/>
<a id="pl.91.27"></a><var>91.27</var>    Subd. 2. <b>Disposition of proceeds.</b> (a) The gross proceeds from any the tax imposed <br/>
<a id="pl.91.28"></a><var>91.28</var>under subdivision 1 must be used by the city to fund a local convention or tourism bureau <br/>
<a id="pl.91.29"></a><var>91.29</var>for the purpose of marketing and promoting the city as a tourist or convention center.<br/>
<a id="pl.91.30"></a><var>91.30</var>(b) The gross proceeds from the one percent tax imposed under subdivision 1a may <br/>
<a id="pl.91.31"></a><var>91.31</var>be used to pay for (1) construction, renovation, improvement, and expansion of the Mayo <br/>
<a id="pl.91.32"></a><var>91.32</var>Civic Center Complex and related skyway access, lighting, parking, or landscaping; <br/>
<a id="pl.91.33"></a><var>91.33</var>and (2) for payment of any principal, interest, or premium on bonds issued to finance <br/>
<a id="pl.91.34"></a><var>91.34</var>the Mayo Civic Center Complex.<br/>
<a id="pl.92.1"></a><var>92.1</var>    Subd. 3. <b>Expiration of taxing authority.</b> The authority of the city to impose a <br/>
<a id="pl.92.2"></a><var>92.2</var>tax under subdivision 1a shall expire when the principal and interest on any bonds or <br/>
<a id="pl.92.3"></a><var>92.3</var>other obligations issued to finance the Mayo Civic Center Complex and related skyway <br/>
<a id="pl.92.4"></a><var>92.4</var>access, lighting, parking, or landscaping have been paid or at an earlier time as the city <br/>
<a id="pl.92.5"></a><var>92.5</var>shall, by ordinance, determine.<br/>
<a id="pl.92.6"></a><var>92.6</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.92.7"></a><var>92.7</var>the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section <br/>
<a id="pl.92.8"></a><var>92.8</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.8.7.0"></a><a id="pl.92.9"></a><var>92.9</var>    Sec. 7. Laws 2006, chapter 259, article 3, section 12, subdivision 3, is amended to read:<br/>
<a id="pl.92.10"></a><var>92.10</var>    Subd. 3. <b>Use of revenues.</b> Revenues received from the taxes authorized by <br/>
<a id="pl.92.11"></a><var>92.11</var>subdivisions 1 and 2 must be used to pay all or part of the capital costs of transportation <br/>
<a id="pl.92.12"></a><var>92.12</var>projects included in the 2004 U.S. Highway 14-Owatonna Beltline Study by the Minnesota <br/>
<a id="pl.92.13"></a><var>92.13</var>Department of Transportation, Steele County, and the city of Owatonna; regional parks <br/>
<a id="pl.92.14"></a><var>92.14</var>and trail developments; and the West Hills complex, including the firehall, and library <br/>
<a id="pl.92.15"></a><var>92.15</var>improvement projects; as described in the city resolution No. 4-06, Exhibit A, as adopted <br/>
<a id="pl.92.16"></a><var>92.16</var>by the city on January 17, 2006. Notwithstanding the specific transportation projects <br/>
<a id="pl.92.17"></a><var>92.17</var>described in city resolution No. 4-06, Exhibit A, the city may transfer up to $1,500,000 <br/>
<a id="pl.92.18"></a><var>92.18</var>of the sales and use tax revenues from the Alexander Street to 39th Avenue Southwest <br/>
<a id="pl.92.19"></a><var>92.19</var>project to the reconstruction of 18th Street Southwest from 24th Avenue Southwest to 39th <br/>
<a id="pl.92.20"></a><var>92.20</var>Avenue West. The amount paid from these revenues for transportation projects may not <br/>
<a id="pl.92.21"></a><var>92.21</var>exceed $4,450,000 plus associated bond costs. The amount paid from these revenues for <br/>
<a id="pl.92.22"></a><var>92.22</var>park and trail projects may not exceed $5,400,000 plus associated bond costs. The amount <br/>
<a id="pl.92.23"></a><var>92.23</var>paid from these revenues for West Hills complex, fire hall, and library improvement <br/>
<a id="pl.92.24"></a><var>92.24</var>projects may not exceed $2,823,000 plus associated bond costs.<br/>
<a id="pl.92.25"></a><var>92.25</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.92.26"></a><var>92.26</var>governing body of the city of Owatonna with Minnesota Statutes, section 645.021, <br/>
<a id="pl.92.27"></a><var>92.27</var>subdivision 3.<br/>
<br/>
<a id="bill.8.8.0"></a><a id="pl.92.28"></a><var>92.28</var>    Sec. 8. Laws 2008, chapter 366, article 7, section 16, subdivision 3, is amended to read:<br/>
<a id="pl.92.29"></a><var>92.29</var>    Subd. 3. <b>Use of proceeds from authorized taxes.</b> The proceeds of any tax imposed <br/>
<a id="pl.92.30"></a><var>92.30</var>under subdivisions 1 and 2 shall be used by the city to pay all or a portion of the expenses <br/>
<a id="pl.92.31"></a><var>92.31</var>of operation and maintenance of the Riverfront 2000 and related facilities, including a <br/>
<a id="pl.92.32"></a><var>92.32</var>performing arts theatre and the Southern Minnesota Women's Hockey Exposition Center, <br/>
<a id="pl.92.33"></a><var>92.33</var>attached to the Mankato Civic Center for use by Minnesota State University, Mankato. <br/>
<a id="pl.93.1"></a><var>93.1</var>Authorized expenses include securing or paying debt service on bonds or other obligations <br/>
<a id="pl.93.2"></a><var>93.2</var>issued to finance the construction of the facilities.<br/>
<a id="pl.93.3"></a><var>93.3</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.93.4"></a><var>93.4</var>the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section <br/>
<a id="pl.93.5"></a><var>93.5</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.8.9.0"></a><a id="pl.93.6"></a><var>93.6</var>    Sec. 9. <b>ROCHESTER FOOD AND BEVERAGE TAX.</b><br/>
<a id="pl.93.7"></a><var>93.7</var>    Subdivision 1. <b>Authorization.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.93.8"></a><var>93.8</var>477A.016, or any other law or charter provision, the city of Rochester may impose a tax of <br/>
<a id="pl.93.9"></a><var>93.9</var>one percent on the gross receipts on all sales of food and beverages by restaurants and <br/>
<a id="pl.93.10"></a><var>93.10</var>places of refreshment, as defined by resolution of the city, that occur in the city. For <br/>
<a id="pl.93.11"></a><var>93.11</var>purposes of this section, "food and beverages" include retail on-sale of intoxicating liquor <br/>
<a id="pl.93.12"></a><var>93.12</var>and fermented malt beverages.<br/>
<a id="pl.93.13"></a><var>93.13</var>    Subd. 2. <b>Use of proceeds.</b> The proceeds of this tax shall be used for (1) paying the <br/>
<a id="pl.93.14"></a><var>93.14</var>cost of collection; (2) to pay for construction, renovation, improvement, and expansion <br/>
<a id="pl.93.15"></a><var>93.15</var>of the Mayo Civic Center Complex and related skyway access, lighting, parking, or <br/>
<a id="pl.93.16"></a><var>93.16</var>landscaping; and (3) for payment of any principal, interest, or premium on bonds issued to <br/>
<a id="pl.93.17"></a><var>93.17</var>finance the Mayo Civic Center Complex.<br/>
<a id="pl.93.18"></a><var>93.18</var>    Subd. 3. <b>Imposition of the tax.</b> The tax under this section may only be imposed <br/>
<a id="pl.93.19"></a><var>93.19</var>upon (1) enactment of a law appropriating state money for construction costs of <br/>
<a id="pl.93.20"></a><var>93.20</var>renovating, improving, or expanding the Mayo Civic Center Complex; and (2) approval of <br/>
<a id="pl.93.21"></a><var>93.21</var>the city governing body of a total financing package for the project.<br/>
<a id="pl.93.22"></a><var>93.22</var>    Subd. 4. <b>Expiration of taxing authority.</b> The authority granted under subdivision <br/>
<a id="pl.93.23"></a><var>93.23</var>1 to the city to impose a one percent tax on food and beverages shall expire when the <br/>
<a id="pl.93.24"></a><var>93.24</var>principal and interest on any bonds or other obligations issued to finance the Mayo Civic <br/>
<a id="pl.93.25"></a><var>93.25</var>Center Complex and related skyway access, lighting, parking, or landscaping have been <br/>
<a id="pl.93.26"></a><var>93.26</var>paid or at an earlier time as the city shall, by ordinance, determine.<br/>
<a id="pl.93.27"></a><var>93.27</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.93.28"></a><var>93.28</var>the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section <br/>
<a id="pl.93.29"></a><var>93.29</var>645.021, subdivisions 2 and 3, and upon approval of the city governing body of a total <br/>
<a id="pl.93.30"></a><var>93.30</var>financing package to renovate, improve, or expand the Mayo Civic Center Complex.<br/>