1.1 	A bill for an act
1.2 	relating to education; removing obsolete and unneeded mandates;amending 
1.3 	Minnesota Statutes 2008, sections 120B.021, subdivision 1; 120B.11, subdivision 
1.4 	5; 123B.10, subdivision 1; 123B.143, subdivision 1; 123B.57, subdivision 
1.5 	1; 123B.59, subdivision 2; 123B.71, subdivision 8; 123B.76, subdivision 3; 
1.6 	124D.68, subdivision 5; 126C.44; 275.065, subdivisions 3, 6; Laws 2008, chapter 
1.7 	363, article 2, section 46, subdivision 1; repealing Minnesota Statutes 2008, 
1.8 	sections 120B.39; 122A.628; 122A.75; 275.065, subdivisions 5a, 6b, 6c, 8, 9, 10.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2008, section 120B.021, subdivision 1, is amended to 
1.11 	read:
1.12 		Subdivision 1.Required academic standards. The following subject areas are 
1.13 	required for statewide accountability:
1.14 	(1) language arts;
1.15 	(2) mathematics;
1.16 	(3) science;
1.17 	(4) social studies, including history, geography, economics, and government and 
1.18 	citizenship;
1.19 	(5) health and physical education, for which locally developed academic standards 
1.20 	apply; and
1.21 	(6) the arts, for which statewide or locally developed academic standards apply, 
1.22 	as determined by the school district. Public elementary and middle schools must offer 
1.23 	at least three and require at least two of the following four arts areas: dance; music; 
1.24 	theater; and visual arts. Public high schools, consistent with section 120B.024, paragraph 
1.25 	(a), clause (5), must offer at least three and require at least one of the following five arts 
1.26 	areas: media arts; dance; music; theater; and visual arts.
2.1 	The commissioner must submit proposed standards in science and social studies to 
2.2 	the legislature by February 1, 2004.
2.3 	For purposes of applicable federal law, the academic standards for language arts, 
2.4 	mathematics, and science apply to all public school students, except the very few students 
2.5 	with extreme cognitive or physical impairments for whom an individualized education 
2.6 	plan team has determined that the required academic standards are inappropriate. 
2.7 	An individualized education plan team that makes this determination must establish 
2.8 	alternative standards.
2.9 	A school district, no later than the 2007-2008 school year, must adopt graduation 
2.10 	requirements that meet or exceed state graduation requirements established in law or 
2.11 	rule. A school district that incorporates these state graduation requirements before the 
2.12 	2007-2008 school year must provide students who enter the 9th grade in or before 
2.13 	the 2003-2004 school year the opportunity to earn a diploma based on existing locally 
2.14 	established graduation requirements in effect when the students entered the 9th grade. 
2.15 	District efforts to develop, implement, or improve instruction or curriculum as a result 
2.16 	of the provisions of this section must be consistent with sections 120B.10, 120B.11, 
2.17 	and 120B.20.
2.18 	The commissioner must include the contributions of Minnesota American Indian 
2.19 	tribes and communities as they relate to the academic standards during the review and 
2.20 	revision of the required academic standards.

2.21 	EFFECTIVE DATE. This section is effective for the 2009-2010 school year and 
2.22 	later.

2.23 	Sec. 2. Minnesota Statutes 2008, section 120B.11, subdivision 5, is amended to read:
2.24 		Subd. 5.Report. (a) By October 1 of each year, the school board shall use standard 
2.25 	statewide reporting procedures the commissioner develops and adopt a report, consistent 
2.26 	with section 120B.36, subdivision 1, that includes the following:
2.27 	(1) student achievement goals for meeting state academic standards;
2.28 	(2) results of local assessment data, and any additional test data;
2.29 	(3) the annual school district improvement plans including staff development goals 
2.30 	under section 122A.60;
2.31 	(4) information about district and learning site progress in realizing previously 
2.32 	adopted improvement plans; and
2.33 	(5) the amount and type of revenue attributed to each education site as defined 
2.34 	in section 123B.04.
3.1 	(b) The school board shall publish the report in the local newspaper with the largest 
3.2 	circulation in the district, by mail, or by electronic means such as the district Web site. If 
3.3 	electronic means are used, school districts must publish notice of the report in a periodical 
3.4 	of general circulation in the district. School districts must make copies of the report 
3.5 	available to the public on request. The board shall make a copy of the report available to 
3.6 	the public for inspection. The board shall send a copy of the report to the commissioner 
3.7 	of education by October 15 of each year.
3.8 	(c) The title of the report shall contain the name and number of the school district and 
3.9 	read "Annual Report on Curriculum, Instruction, and Student Achievement." The report 
3.10 	must include at least the following information about advisory committee membership:
3.11 	(1) the name of each committee member and the date when that member's term 
3.12 	expires;
3.13 	(2) the method and criteria the school board uses to select committee members; and
3.14 	(3) the date by which a community resident must apply to next serve on the 
3.15 	committee.

3.16 	EFFECTIVE DATE. This section is effective for the 2009-2010 school year and 
3.17 	later.

3.18 	Sec. 3. Minnesota Statutes 2008, section 123B.10, subdivision 1, is amended to read:
3.19 		Subdivision 1.Budgets; form of notification. (a) Every board must publish revenue 
3.20 	and expenditure budgets for the current year and the actual revenues, expenditures, fund 
3.21 	balances for the prior year and projected fund balances for the current year in a form 
3.22 	prescribed by the commissioner within one week of the acceptance of the final audit by 
3.23 	the board, or November 30, whichever is earlier. The forms prescribed must be designed 
3.24 	so that year to year comparisons of revenue, expenditures and fund balances can be made. 
3.25 	(b) A school board annually must notify the public of its revenue, expenditures, fund 
3.26 	balances, and other relevant budget information. The board must include the budget 
3.27 	information required by this section in the materials provided as a part of its truth in 
3.28 	taxation hearing, post the materials in a conspicuous place on the district's official Web 
3.29 	site, including a link to the district's school report card on the Department of Education's 
3.30 	Web site, and publish a summary of the information and the address of the district's 
3.31 	official Web site where the information can be found in a qualified newspaper of general 
3.32 	circulation in the district.

3.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

4.1 	Sec. 4. Minnesota Statutes 2008, section 123B.143, subdivision 1, is amended to read:
4.2 		Subdivision 1.Contract; duties. All districts maintaining a classified secondary 
4.3 	school must employ a superintendent who shall be an ex officio nonvoting member of the 
4.4 	school board. The authority for selection and employment of a superintendent must be 
4.5 	vested in the board in all cases. An individual employed by a board as a superintendent 
4.6 	shall have an initial employment contract for a period of time no longer than three years 
4.7 	from the date of employment. Any subsequent employment contract must not exceed a 
4.8 	period of three years. A board, at its discretion, may or may not renew an employment 
4.9 	contract. A board must not, by action or inaction, extend the duration of an existing 
4.10 	employment contract. Beginning 365 days prior to the expiration date of an existing 
4.11 	employment contract, a board may negotiate and enter into a subsequent employment 
4.12 	contract to take effect upon the expiration of the existing contract. A subsequent contract 
4.13 	must be contingent upon the employee completing the terms of an existing contract. If a 
4.14 	contract between a board and a superintendent is terminated prior to the date specified in 
4.15 	the contract, the board may not enter into another superintendent contract with that same 
4.16 	individual that has a term that extends beyond the date specified in the terminated contract. 
4.17 	A board may terminate a superintendent during the term of an employment contract for any 
4.18 	of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall 
4.19 	not rely upon an employment contract with a board to assert any other continuing contract 
4.20 	rights in the position of superintendent under section 122A.40. Notwithstanding the 
4.21 	provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law 
4.22 	to the contrary, no individual shall have a right to employment as a superintendent based 
4.23 	on order of employment in any district. If two or more districts enter into an agreement for 
4.24 	the purchase or sharing of the services of a superintendent, the contracting districts have 
4.25 	the absolute right to select one of the individuals employed to serve as superintendent 
4.26 	in one of the contracting districts and no individual has a right to employment as the 
4.27 	superintendent to provide all or part of the services based on order of employment in a 
4.28 	contracting district. The superintendent of a district shall perform the following: 
4.29 	(1) visit and supervise the schools in the district, report and make recommendations 
4.30 	about their condition when advisable or on request by the board;
4.31 	(2) recommend to the board employment and dismissal of teachers;
4.32 	(3) superintend school grading practices and examinations for promotions;
4.33 	(4) make reports required by the commissioner; and
4.34 	(5) by January 10, submit an annual report to the commissioner in a manner 
4.35 	prescribed by the commissioner, in consultation with school districts, identifying the 
4.36 	expenditures that the district requires to ensure an 80 percent student passage rate on 
5.1 	the MCA-IIs taken in the eighth grade, identifying the highest student passage rate the 
5.2 	district expects it will be able to attain on the MCA-IIs by grade 12, and the amount of 
5.3 	expenditures that the district requires to attain the targeted student passage rate; and
5.4 	(6) perform other duties prescribed by the board.

5.5 	EFFECTIVE DATE. This section is effective the day following final enactment 
5.6 	and applies to the 2009-2010 school year and later.

5.7 	Sec. 5. Minnesota Statutes 2008, section 123B.57, subdivision 1, is amended to read:
5.8 		Subdivision 1.Health and safety program. (a) To receive health and safety 
5.9 	revenue for any fiscal year a district must submit to the commissioner an application for 
5.10 	aid and levy by the date determined by the commissioner. The application may be for 
5.11 	hazardous substance removal, fire and life safety code repairs, labor and industry regulated 
5.12 	facility and equipment violations, and health, safety, and environmental management, 
5.13 	including indoor air quality management. The application must include a health and safety 
5.14 	program adopted by the school district board. The program must include the estimated 
5.15 	cost, per building, of the program by fiscal year. Upon approval through the adoption of 
5.16 	a resolution by each of an intermediate district's member school district boards and the 
5.17 	approval of the Department of Education, a school district may include its proportionate 
5.18 	share of the costs of health and safety projects for an intermediate district in its application.
5.19 	(b) Health and safety projects with an estimated cost of $500,000 or more per site, 
5.20 	approved after February 1, 2003, are not eligible for health and safety revenue. Health 
5.21 	and safety projects with an estimated cost of $500,000 or more per site, approved after 
5.22 	February 1, 2003, that meet all other requirements for health and safety funding, are 
5.23 	eligible for alternative facilities bonding and levy revenue according to section 123B.59. 
5.24 	A school board shall not separate portions of a single project into components to qualify 
5.25 	for health and safety revenue, and shall not combine unrelated projects into a single project 
5.26 	to qualify for alternative facilities bonding and levy revenue.

5.27 	EFFECTIVE DATE. This section is effective July 1, 2009.

5.28 	Sec. 6. Minnesota Statutes 2008, section 123B.59, subdivision 2, is amended to read:
5.29 		Subd. 2.Facility plan. (a) A district qualifying under subdivision 1, paragraph 
5.30 	(a), must have a ten-year facility plan approved by the commissioner that includes an 
5.31 	inventory of projects and costs that would be eligible for:
5.32 	(1) health and safety revenue, without restriction as to project size;
5.33 	(2) disabled access levy; and
6.1 	(3) deferred capital expenditures and maintenance projects necessary to prevent 
6.2 	further erosion of facilities.
6.3 	(b) A district qualifying under subdivision 1, paragraph (b), must have a five-year 
6.4 	plan approved by the commissioner that includes an inventory of projects and costs for 
6.5 	health and safety projects with an estimated cost of $500,000 or more per site that would 
6.6 	qualify for health and safety revenue except for the project size limitation in section 
6.7 	123B.57, subdivision 1, paragraph (b).
6.8 	(c) The school district must:
6.9 	(1) annually update the plans;
6.10 	(2) biennially submit a facility maintenance plan; and
6.11 	(3) indicate whether the district will issue bonds to finance the plan or levy for 
6.12 	the costs.

6.13 	EFFECTIVE DATE. This section is effective July 1, 2009.

6.14 	Sec. 7. Minnesota Statutes 2008, section 123B.71, subdivision 8, is amended to read:
6.15 		Subd. 8.Review and comment. A school district, a special education cooperative, 
6.16 	or a cooperative unit of government, as defined in section 123A.24, subdivision 2, 
6.17 	must not initiate an installment contract for purchase or a lease agreement, hold a 
6.18 	referendum for bonds, nor solicit bids for new construction, expansion, or remodeling of 
6.19 	an educational facility that requires an expenditure in excess of $500,000 $1,400,000
6.20 	per school site prior to review and comment by the commissioner. The commissioner 
6.21 	may exempt a facility maintenance project funded with general education aid and levy, 
6.22 	alternative facilities bonding and levy program, or health and safety revenue from this 
6.23 	provision after reviewing a written request from a school district describing the scope of 
6.24 	work. A school board shall not separate portions of a single project into components to 
6.25 	avoid the requirements of this subdivision.

6.26 	EFFECTIVE DATE. This section is effective for review and comments requested 
6.27 	on or after July 1, 2009.

6.28 	Sec. 8. Minnesota Statutes 2008, section 123B.76, subdivision 3, is amended to read:
6.29 		Subd. 3.Expenditures by building. (a) For the purposes of this section, "building" 
6.30 	means education site as defined in section 123B.04, subdivision 1.
6.31 	(b) Each district shall maintain separate accounts to identify general fund 
6.32 	expenditures for each building to the extent provided by the uniform financial accounting 
6.33 	and reporting standards for school units. All expenditures for regular instruction, 
7.1 	secondary vocational instruction, and school administration must be reported to 
7.2 	the department separately for each building. All expenditures for special education 
7.3 	instruction, instructional support services, and pupil support services provided within a 
7.4 	specific building must be reported to the department separately for each building. Salary 
7.5 	expenditures reported by building must reflect actual salaries for staff at the building and 
7.6 	must not be based on districtwide averages. All other General fund expenditures not 
7.7 	available at the building level through the uniform financial accounting and reporting 
7.8 	standards may be reported by building or on a districtwide basis.
7.9 	(c) The department must annually report information showing school district general 
7.10 	fund expenditures per pupil by program category for each building and estimated school 
7.11 	district general fund revenue generated by pupils attending each building on its Web 
7.12 	site. For purposes of this report:
7.13 	(1) expenditures not reported by building shall be allocated among buildings on a 
7.14 	uniform per pupil basis;
7.15 	(2) basic skills revenue shall be allocated according to section 126C.10, subdivision 
7.16 	4;
7.17 	(3) secondary sparsity revenue and elementary sparsity revenue shall be allocated 
7.18 	according to section 126C.10, subdivisions 7 and 8;
7.19 	(4) alternative teacher compensation revenue shall be allocated according to section 
7.20 	122A.415, subdivision 1;
7.21 	(5) other general education revenue shall be allocated on a uniform per pupil unit 
7.22 	basis;
7.23 	(6) first grade preparedness aid shall be allocated according to section 124D.081;
7.24 	(7) state and federal special education aid and Title I aid shall be allocated in 
7.25 	proportion to district expenditures for these programs by building; and
7.26 	(8) other general fund revenues shall be allocated on a uniform per pupil basis, 
7.27 	except that the department may allocate other revenues attributable to specific buildings 
7.28 	directly to those buildings.

7.29 	EFFECTIVE DATE. This section is effective for fiscal years 2010 and later.

7.30 	Sec. 9. Minnesota Statutes 2008, section 124D.68, subdivision 5, is amended to read:
7.31 		Subd. 5.Pupil enrollment. (a) Any eligible pupil may apply to enroll in an eligible 
7.32 	program. Approval of the resident district is not required for:
7.33 	(1) an eligible pupil to enroll in any eligible program in a nonresident district under 
7.34 	subdivision 3 or 4 or an area learning center established under section 123A.05; or
8.1 	(2) an eligible pupil under subdivision 2, to enroll in an adult basic education 
8.2 	program approved under section 124D.52.
8.3 	(b) Notwithstanding paragraph (a), a nonresident district must first approve the 
8.4 	enrollment application of any eligible pupil who was expelled under section 121A.45 for a 
8.5 	reason stated in section 124D.03, subdivision 1, paragraph (b).

8.6 	EFFECTIVE DATE. This section is effective for the 2009-2010 school year and 
8.7 	later.

8.8 	Sec. 10. Minnesota Statutes 2008, section 126C.44, is amended to read:
8.9 	126C.44 SAFE SCHOOLS LEVY.
8.10 	(a) Each district may make a levy on all taxable property located within the district 
8.11 	for the purposes specified in this section. The maximum amount which may be levied 
8.12 	for all costs under this section shall be equal to $30 multiplied by the district's adjusted 
8.13 	marginal cost pupil units for the school year. The proceeds of the levy must be reserved and 
8.14 	used for directly funding the following purposes or for reimbursing the cities and counties 
8.15 	who contract with the district for the following purposes: (1) to pay the costs incurred for 
8.16 	the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in 
8.17 	services in the district's schools; (2) to pay the costs for a drug abuse prevention program 
8.18 	as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools; 
8.19 	(3) to pay the costs for a gang resistance education training curriculum in the district's 
8.20 	schools; (4) to pay the costs for security in the district's schools and on school property; (5) 
8.21 	to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary 
8.22 	opt-in suicide prevention tools, and violence prevention measures taken by the school 
8.23 	district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed 
8.24 	school social workers, licensed school psychologists, and licensed alcohol and chemical 
8.25 	dependency counselors to help provide early responses to problems. For expenditures 
8.26 	under clause (1), the district must initially attempt to contract for services to be provided 
8.27 	by peace officers or sheriffs with the police department of each city or the sheriff's 
8.28 	department of the county within the district containing the school receiving the services. If 
8.29 	a local police department or a county sheriff's department does not wish to provide the 
8.30 	necessary services, the district may contract for these services with any other police or 
8.31 	sheriff's department located entirely or partially within the school district's boundaries. 
8.32 	(b) A school district that is a member of an intermediate school district may 
8.33 	include in its authority under this section the costs associated with safe schools activities 
8.34 	authorized under paragraph (a) for intermediate school district programs. This authority 
9.1 	must not exceed $10 times the adjusted marginal cost pupil units of the member districts. 
9.2 	This authority is in addition to any other authority authorized under this section. Revenue 
9.3 	raised under this paragraph must be transferred to the intermediate school district.
9.4 	(c) A school district must set aside at least $3 per adjusted marginal cost pupil 
9.5 	unit of the safe schools levy proceeds for the purposes authorized under paragraph (a), 
9.6 	clause (6). The district must annually certify either that: (1) its total spending on services 
9.7 	provided by the employees listed in paragraph (a), clause (6), is not less than the sum of 
9.8 	its expenditures for these purposes, excluding amounts spent under this section, in the 
9.9 	previous year plus the amount spent under this section; or (2) that the district's full-time 
9.10 	equivalent number of employees listed in paragraph (a), clause (6), is not less than the 
9.11 	number for the previous year.

9.12 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2010 
9.13 	and later.

9.14 	Sec. 11. Minnesota Statutes 2008, section 275.065, subdivision 3, is amended to read:
9.15 		Subd. 3.Notice of proposed property taxes. (a) The county auditor shall prepare 
9.16 	and the county treasurer shall deliver after November 10 and on or before November 24 
9.17 	each year, by first class mail to each taxpayer at the address listed on the county's current 
9.18 	year's assessment roll, a notice of proposed property taxes. Upon written request by 
9.19 	the taxpayer, the treasurer may send the notice in electronic form or by electronic mail 
9.20 	instead of on paper or by ordinary mail.
9.21 	(b) The commissioner of revenue shall prescribe the form of the notice.
9.22 	(c) The notice must inform taxpayers that it contains the amount of property taxes 
9.23 	each taxing authority proposes to collect for taxes payable the following year. In the 
9.24 	case of a town, or in the case of the state general tax, the final tax amount will be its 
9.25 	proposed tax. In the case of taxing authorities required to hold a public meeting under 
9.26 	subdivision 6, the notice must clearly state that each taxing authority, including regional 
9.27 	library districts established under section 134.201, and including the metropolitan taxing 
9.28 	districts as defined in paragraph (i), but excluding all other special taxing districts and 
9.29 	towns, will hold a public meeting to receive public testimony on the proposed budget and 
9.30 	proposed or final property tax levy, or, in case of a school district, on the current budget 
9.31 	and proposed property tax levy. The notice must clearly state for each city, county, school 
9.32 	district, regional library authority established under section 134.201, and metropolitan 
9.33 	taxing districts as defined in paragraph (i), the time and place of the taxing authority's 
9.34 	regularly scheduled meetings in which the budget and levy will be discussed and the final 
9.35 	budget and levy determined. The taxing authorities must provide the county auditor with 
10.1 	the information to be included in the notice. It must clearly state the time and place of 
10.2 	each taxing authority's meeting, provide a telephone number for the taxing authority that 
10.3 	taxpayers may call if they have questions related to the notice, and an address where 
10.4 	comments will be received by mail.
10.5 	(d) The notice must state for each parcel:
10.6 	(1) the market value of the property as determined under section 273.11, and used 
10.7 	for computing property taxes payable in the following year and for taxes payable in the 
10.8 	current year as each appears in the records of the county assessor on November 1 of the 
10.9 	current year; and, in the case of residential property, whether the property is classified as 
10.10 	homestead or nonhomestead. The notice must clearly inform taxpayers of the years to 
10.11 	which the market values apply and that the values are final values;
10.12 	(2) the items listed below, shown separately by county, city or town, and state general 
10.13 	tax, net of the residential and agricultural homestead credit under section 273.1384, voter 
10.14 	approved school levy, other local school levy, and the sum of the special taxing districts, 
10.15 	and as a total of all taxing authorities:
10.16 	(i) the actual tax for taxes payable in the current year; and
10.17 	(ii) the proposed tax amount.
10.18 	If the county levy under clause (2) includes an amount for a lake improvement 
10.19 	district as defined under sections 103B.501 to 103B.581, the amount attributable for that 
10.20 	purpose must be separately stated from the remaining county levy amount.
10.21 	In the case of a town or the state general tax, the final tax shall also be its proposed 
10.22 	tax unless the town changes its levy at a special town meeting under section 365.52. If a 
10.23 	school district has certified under section 126C.17, subdivision 9, that a referendum will 
10.24 	be held in the school district at the November general election, the county auditor must 
10.25 	note next to the school district's proposed amount that a referendum is pending and that, if 
10.26 	approved by the voters, the tax amount may be higher than shown on the notice. In the 
10.27 	case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be 
10.28 	listed separately from the remaining amount of the city's levy. In the case of the city of 
10.29 	St. Paul, the levy for the St. Paul Library Agency must be listed separately from the 
10.30 	remaining amount of the city's levy. In the case of Ramsey County, any amount levied 
10.31 	under section 134.07 may be listed separately from the remaining amount of the county's 
10.32 	levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax 
10.33 	under chapter 276A or 473F applies, the proposed tax levy on the captured value or the 
10.34 	proposed tax levy on the tax capacity subject to the areawide tax must each be stated 
10.35 	separately and not included in the sum of the special taxing districts; and
11.1 	(3) the increase or decrease between the total taxes payable in the current year and 
11.2 	the total proposed taxes, expressed as a percentage.
11.3 	For purposes of this section, the amount of the tax on homesteads qualifying under 
11.4 	the senior citizens' property tax deferral program under chapter 290B is the total amount 
11.5 	of property tax before subtraction of the deferred property tax amount.
11.6 	(e) The notice must clearly state that the proposed or final taxes do not include 
11.7 	the following:
11.8 	(1) special assessments;
11.9 	(2) levies approved by the voters after the date the proposed taxes are certified, 
11.10 	including bond referenda and school district levy referenda;
11.11 	(3) a levy limit increase approved by the voters by the first Tuesday after the first 
11.12 	Monday in November of the levy year as provided under section 275.73;
11.13 	(4) amounts necessary to pay cleanup or other costs due to a natural disaster 
11.14 	occurring after the date the proposed taxes are certified;
11.15 	(5) amounts necessary to pay tort judgments against the taxing authority that become 
11.16 	final after the date the proposed taxes are certified; and
11.17 	(6) the contamination tax imposed on properties which received market value 
11.18 	reductions for contamination.
11.19 	(f) Except as provided in subdivision 7, failure of the county auditor to prepare or 
11.20 	the county treasurer to deliver the notice as required in this section does not invalidate the 
11.21 	proposed or final tax levy or the taxes payable pursuant to the tax levy.
11.22 	(g) If the notice the taxpayer receives under this section lists the property as 
11.23 	nonhomestead, and satisfactory documentation is provided to the county assessor by the 
11.24 	applicable deadline, and the property qualifies for the homestead classification in that 
11.25 	assessment year, the assessor shall reclassify the property to homestead for taxes payable 
11.26 	in the following year.
11.27 	(h) In the case of class 4 residential property used as a residence for lease or rental 
11.28 	periods of 30 days or more, the taxpayer must either:
11.29 	(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, 
11.30 	renter, or lessee; or
11.31 	(2) post a copy of the notice in a conspicuous place on the premises of the property.
11.32 	The notice must be mailed or posted by the taxpayer by November 27 or within 
11.33 	three days of receipt of the notice, whichever is later. A taxpayer may notify the county 
11.34 	treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to 
11.35 	which the notice must be mailed in order to fulfill the requirements of this paragraph.
12.1 	(i) For purposes of this subdivision, subdivisions and subdivision 5a and 6, 
12.2 	"metropolitan special taxing districts" means the following taxing districts in the 
12.3 	seven-county metropolitan area that levy a property tax for any of the specified purposes 
12.4 	listed below:
12.5 	(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 
12.6 	473.446, 473.521, 473.547, or 473.834;
12.7 	(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; 
12.8 	and 
12.9 	(3) Metropolitan Mosquito Control Commission under section 473.711.
12.10 	For purposes of this section, any levies made by the regional rail authorities in the 
12.11 	county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
12.12 	398A shall be included with the appropriate county's levy and shall be discussed at that 
12.13 	county's public hearing.
12.14 	(j) The governing body of a county, city, or school district may, with the consent 
12.15 	of the county board, include supplemental information with the statement of proposed 
12.16 	property taxes about the impact of state aid increases or decreases on property tax 
12.17 	increases or decreases and on the level of services provided in the affected jurisdiction. 
12.18 	This supplemental information may include information for the following year, the current 
12.19 	year, and for as many consecutive preceding years as deemed appropriate by the governing 
12.20 	body of the county, city, or school district. It may include only information regarding:
12.21 	(1) the impact of inflation as measured by the implicit price deflator for state and 
12.22 	local government purchases;
12.23 	(2) population growth and decline;
12.24 	(3) state or federal government action; and
12.25 	(4) other financial factors that affect the level of property taxation and local services 
12.26 	that the governing body of the county, city, or school district may deem appropriate to 
12.27 	include.
12.28 	The information may be presented using tables, written narrative, and graphic 
12.29 	representations and may contain instruction toward further sources of information or 
12.30 	opportunity for comment.

12.31 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
12.32 	thereafter.

12.33 	Sec. 12. Minnesota Statutes 2008, section 275.065, subdivision 6, is amended to read:
12.34 		Subd. 6.Public hearing; Adoption of budget and levy. (a) For purposes of this 
12.35 	section, the following terms shall have the meanings given:
13.1 	(1) "Initial hearing" means the first and primary hearing held to discuss the taxing 
13.2 	authority's proposed budget and proposed property tax levy for taxes payable in the 
13.3 	following year, or, for school districts, the current budget and the proposed property tax 
13.4 	levy for taxes payable in the following year.
13.5 	(2) "Continuation hearing" means a hearing held to complete the initial hearing, if 
13.6 	the initial hearing is not completed on its scheduled date.
13.7 	(3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final 
13.8 	property tax levy, and, in the case of taxing authorities other than school districts, the final 
13.9 	budget, for taxes payable in the following year.
13.10 	(b) Between November 29 and December 20, the governing bodies of a city that has a 
13.11 	population over 500, county, metropolitan special taxing districts as defined in subdivision 
13.12 	3, paragraph (i), and regional library districts shall each hold an initial public hearing 
13.13 	to discuss and seek public comment on its final budget and property tax levy for taxes 
13.14 	payable in the following year, and the governing body of the school district shall hold an 
13.15 	initial public hearing to review its current budget and proposed property tax levy for taxes 
13.16 	payable in the following year. The metropolitan special taxing districts shall be required to 
13.17 	hold only a single joint initial public hearing, the location of which will be determined by 
13.18 	the affected metropolitan agencies. A city, county, metropolitan special taxing district as 
13.19 	defined in subdivision 3, paragraph (i), regional library district established under section 
13.20 	134.201, or school district is not required to hold a public hearing under this subdivision 
13.21 	unless its proposed property tax levy for taxes payable in the following year, as certified 
13.22 	under subdivision 1, has increased over its final property tax levy for taxes payable in the 
13.23 	current year by a percentage that is greater than the percentage increase in the implicit 
13.24 	price deflator for government consumption expenditures and gross investment for state 
13.25 	and local governments prepared by the Bureau of Economic Analysts of the United States 
13.26 	Department of Commerce for the 12-month period ending March 31 of the current year.
13.27 	(c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than 
13.28 	Saturday. No initial hearing may be held on a Sunday.
13.29 	(d) At the initial hearing under this subdivision, the percentage increase in property 
13.30 	taxes proposed by the taxing authority, if any, and the specific purposes for which property 
13.31 	tax revenues are being increased must be discussed. During the discussion, the governing 
13.32 	body shall hear comments regarding a proposed increase and explain the reasons for the 
13.33 	proposed increase. The public shall be allowed to speak and to ask questions. At the public 
13.34 	hearing, the school district must also provide and discuss information on the distribution 
13.35 	of its revenues by revenue source, and the distribution of its spending by program area.
14.1 	(e) If the initial hearing is not completed on its scheduled date, the taxing authority 
14.2 	must announce, prior to adjournment of the hearing, the date, time, and place for the 
14.3 	continuation of the hearing. The continuation hearing must be held at least five business 
14.4 	days but no more than 14 business days after the initial hearing. A continuation hearing 
14.5 	may not be held later than December 20 except as provided in paragraphs (f) and (g). 
14.6 	A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than 
14.7 	Saturday. No continuation hearing may be held on a Sunday.
14.8 	(f) The governing body of a county shall hold its initial hearing on the first Thursday 
14.9 	in December each year, and may hold additional initial hearings on other dates before 
14.10 	December 20 if necessary for the convenience of county residents. If the county needs a 
14.11 	continuation of its hearing, the continuation hearing shall be held on the third Tuesday 
14.12 	in December. If the third Tuesday in December falls on December 21, the county's 
14.13 	continuation hearing shall be held on Monday, December 20.
14.14 	(g) The metropolitan special taxing districts shall hold a joint initial public hearing 
14.15 	on the first Wednesday of December. A continuation hearing, if necessary, shall be held on 
14.16 	the second Wednesday of December even if that second Wednesday is after December 10.
14.17 	(h) The county auditor shall provide for the coordination of initial and continuation 
14.18 	hearing dates for all school districts and cities within the county to prevent conflicts under 
14.19 	clauses (i) and (j).
14.20 	(i) By August 10, each school board and the board of the regional library district 
14.21 	shall certify to the county auditors of the counties in which the school district or regional 
14.22 	library district is located the dates on which it elects to hold its initial hearing and any 
14.23 	continuation hearing. If a school board or regional library district does not certify these 
14.24 	dates by August 10, the auditor will assign the initial and continuation hearing dates. The 
14.25 	dates elected or assigned must not conflict with the initial and continuation hearing dates 
14.26 	of the county or the metropolitan special taxing districts.
14.27 	(j) By August 20, the county auditor shall notify the clerks of the cities within the 
14.28 	county of the dates on which school districts and regional library districts have elected to 
14.29 	hold their initial and continuation hearings. At the time a city certifies its proposed levy 
14.30 	under subdivision 1 it shall certify the dates on which it elects to hold its initial hearing and 
14.31 	any continuation hearing. Until September 15, the first and second Mondays of December 
14.32 	are reserved for the use of the cities. If a city does not certify its hearing dates by 
14.33 	September 15, the auditor shall assign the initial and continuation hearing dates. The dates 
14.34 	elected or assigned for the initial hearing must not conflict with the initial hearing dates 
14.35 	of the county, metropolitan special taxing districts, regional library districts, or school 
14.36 	districts within which the city is located. To the extent possible, the dates of the city's 
15.1 	continuation hearing should not conflict with the continuation hearing dates of the county, 
15.2 	metropolitan special taxing districts, regional library districts, or school districts within 
15.3 	which the city is located. This paragraph does not apply to cities of 500 population or less.
15.4 	(k) The county initial hearing date and the city, metropolitan special taxing district, 
15.5 	regional library district, and school district initial hearing dates must be designated on 
15.6 	the notices required under subdivision 3. The continuation hearing dates need not be 
15.7 	stated on the notices.
15.8 	(l) At a subsequent hearing, each county, school district, city over 500 population, 
15.9 	and metropolitan special taxing district may amend its proposed property tax levy 
15.10 	and must adopt a final property tax levy. Each county, city over 500 population, and 
15.11 	metropolitan special taxing district may also amend its proposed budget and must adopt a 
15.12 	final budget at the subsequent hearing. The final property tax levy must be adopted prior 
15.13 	to adopting the final budget. A school district is not required to adopt its final budget at the 
15.14 	subsequent hearing. The subsequent hearing of a taxing authority must be held on a date 
15.15 	subsequent to the date of the taxing authority's initial public hearing. If a continuation 
15.16 	hearing is held, the subsequent hearing must be held either immediately following the 
15.17 	continuation hearing or on a date subsequent to the continuation hearing. The subsequent 
15.18 	hearing may be held at a regularly scheduled board or council meeting or at a special 
15.19 	meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing 
15.20 	of a taxing authority does not have to be coordinated by the county auditor to prevent a 
15.21 	conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any 
15.22 	other taxing authority. All subsequent hearings must be held prior to five working days 
15.23 	after December 20 of the levy year. The date, time, and place of the subsequent hearing 
15.24 	must be announced at the initial public hearing or at the continuation hearing.
15.25 	(m) (a) The property tax levy certified under section 275.07 by a city of any 
15.26 	population, county, metropolitan special taxing district, regional library district, or school 
15.27 	district must not exceed the proposed levy determined under subdivision 1, except by an 
15.28 	amount up to the sum of the following amounts:
15.29 	(1) the amount of a school district levy whose voters approved a referendum to 
15.30 	increase taxes under section 123B.63, subdivision 3, or 126C.17, subdivision 9, after 
15.31 	the proposed levy was certified;
15.32 	(2) the amount of a city or county levy approved by the voters after the proposed 
15.33 	levy was certified;
15.34 	(3) the amount of a levy to pay principal and interest on bonds approved by the 
15.35 	voters under section 475.58 after the proposed levy was certified;
16.1 	(4) the amount of a levy to pay costs due to a natural disaster occurring after the 
16.2 	proposed levy was certified, if that amount is approved by the commissioner of revenue 
16.3 	under subdivision 6a;
16.4 	(5) the amount of a levy to pay tort judgments against a taxing authority that become 
16.5 	final after the proposed levy was certified, if the amount is approved by the commissioner 
16.6 	of revenue under subdivision 6a;
16.7 	(6) the amount of an increase in levy limits certified to the taxing authority by the 
16.8 	commissioner of education or the commissioner of revenue after the proposed levy was 
16.9 	certified; and
16.10 	(7) the amount required under section 126C.55.
16.11 	(n) (b) This subdivision does not apply to towns and special taxing districts other 
16.12 	than regional library districts and metropolitan special taxing districts.
16.13 	(o) (c) Notwithstanding the requirements of this section, the employer is required to 
16.14 	meet and negotiate over employee compensation as provided for in chapter 179A.

16.15 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
16.16 	thereafter.

16.17 	Sec. 13. Laws 2008, chapter 363, article 2, section 46, subdivision 1, is amended to 
16.18 	read:
16.19 		Subdivision 1.Capital account transfers. Notwithstanding any law to the contrary, 
16.20 	on June 30, of 2008, 2009, and 2010, a school district may transfer money from its 
16.21 	reserved for operating capital account to its undesignated balance in the general fund. The 
16.22 	amount transferred by any school district must not exceed $51 times the district's adjusted 
16.23 	marginal cost pupil units for the second preceding fiscal year 2007. This transfer annually 
16.24 	may occur only after the school board has adopted a written resolution stating the amount 
16.25 	of the transfer and declaring that the school district's operating capital needs are being met.

16.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

16.27 	Sec. 14.  REPEALER.
 16.28 	(a) Minnesota Statutes 2008, sections 120B.39; 122A.628; and 122A.75, are 
16.29 	repealed.
16.30 	(b) Minnesota Statutes 2008, section 275.065, subdivisions 5a, 6b, 6c, 8, 9, and 
16.31 	10, are repealed.

17.1 	EFFECTIVE DATE.  Paragraph (a) of this section is effective the day following 
17.2 	final enactment and paragraph (b) of this section is effective for taxes payable in 2010 
17.3 	and thereafter.