1.1 	A bill for an act
1.2 	relating to education finance; linking operating referendum equalization factors 
1.3 	to statewide growth in property tax base;amending Minnesota Statutes 2016, 
1.4 	sections 126C.01, by adding a subdivision; 126C.17, subdivision 6.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2016, section 126C.01, is amended by adding a subdivision 
1.7 	to read:
1.8 		Subd. 3a.Statewide average referendum market value per resident pupil unit. The 
1.9 	statewide average referendum market value per resident pupil unit equals the statewide 
1.10 	referendum market value calculated under subdivision 3 for the year preceding the year the 
1.11 	levy is certified divided by the statewide total resident pupil units for the current school 
1.12 	year.

1.13 	Sec. 2. Minnesota Statutes 2016, section 126C.17, subdivision 6, is amended to read:
1.14 		Subd. 6.Referendum equalization levy. (a) A district's referendum equalization levy 
1.15 	equals the sum of the first tier referendum equalization levy, the second tier referendum 
1.16 	equalization levy, and the third tier referendum equalization levy.
1.17 	(b) A district's first tier referendum equalization levy equals the district's first tier 
1.18 	referendum equalization revenue times the lesser of one or the ratio of the district's 
1.19 	referendum market value per resident pupil unit to the greater of $880,000 or 165 percent 
1.20 	of the statewide average referendum market value per resident pupil unit.
1.21 	(c) A district's second tier referendum equalization levy equals the district's second tier 
1.22 	referendum equalization revenue times the lesser of one or the ratio of the district's 
2.1 	referendum market value per resident pupil unit to the greater of $510,000 or 100 percent 
2.2 	of the statewide average referendum market value per resident pupil unit.
2.3 	(d) A district's third tier referendum equalization levy equals the district's third tier 
2.4 	referendum equalization revenue times the lesser of one or the ratio of the district's 
2.5 	referendum market value per resident pupil unit to $290,000 60 percent of the statewide 
2.6 	average referendum market value per resident pupil unit.

2.7 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2020 and later.