HF 155

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to education; enhancing Minnesota's 
  1.3             elementary and secondary school system by providing 
  1.4             all school district operating funds through state 
  1.5             aids; amending Minnesota Statutes 2000, sections 
  1.6             123A.39, subdivision 3; 123A.41, subdivision 4; 
  1.7             123A.444; 123A.485, subdivisions 1 and 3; 123A.67, 
  1.8             subdivision 3; 123A.73, subdivisions 9 and 12; 
  1.9             123A.76; 123B.53, subdivisions 4 and 5; 123B.54; 
  1.10            123B.57, subdivisions 1, 3, and 5; 123B.59, 
  1.11            subdivisions 1, 2, 4, 6, and 7; 123B.61; 123B.62; 
  1.12            124D.135, subdivisions 1 and 6; 124D.20, subdivision 
  1.13            1; 124D.22, subdivision 2; 124D.56, subdivision 1; 
  1.14            124D.86, subdivision 5; 126C.13, subdivisions 1, 2, 3, 
  1.15            and 4; 126C.14; 126C.41, subdivisions 1, 3, and 4; 
  1.16            126C.42, subdivisions 1, 2, 3, and 4; 126C.43, 
  1.17            subdivisions 1, 2, 3, 4, 5, and 6; 126C.44; and 
  1.18            126C.45; proposing coding for new law in Minnesota 
  1.19            Statutes, chapter 127A; repealing Minnesota Statutes 
  1.20            2000, sections 123B.57, subdivisions 4 and 7; 123B.59, 
  1.21            subdivision 5; 123B.64, subdivision 3; 124D.135, 
  1.22            subdivisions 3 and 4; 124D.20, subdivisions 5, 6, and 
  1.23            7; 124D.56, subdivisions 2 and 3; 124D.86, subdivision 
  1.24            4; 126C.10, subdivisions 10, 11, 21, and 22; and 
  1.25            126C.17. 
  1.26  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.27     Section 1.  Minnesota Statutes 2000, section 123A.39, 
  1.28  subdivision 3, is amended to read: 
  1.29     Subd. 3.  [RETIREMENT AND SEVERANCE LEVY AID.] A 
  1.30  cooperating or combined district that levied under Minnesota 
  1.31  Statutes 1996, section 124.2725, subdivision 3, for taxes 
  1.32  payable in 1995 may levy is eligible for state aid for severance 
  1.33  pay or early retirement incentives for licensed and nonlicensed 
  1.34  employees who retire early as a result of the cooperation or 
  1.35  combination. 
  2.1      Sec. 2.  Minnesota Statutes 2000, section 123A.41, 
  2.2   subdivision 4, is amended to read: 
  2.3      Subd. 4.  [TRANSITIONAL LEVY AID.] The board of the 
  2.4   combined district, or the boards of combining districts that 
  2.5   have received voter approval for the combination under section 
  2.6   123A.37, subdivision 2, may levy for are eligible for state aid 
  2.7   equal to the expenses of negotiation, administrative expenses 
  2.8   directly related to the transition from cooperation to 
  2.9   combination, and the cost of necessary new athletic and music 
  2.10  uniforms.  The board or boards may levy this amount over three 
  2.11  or fewer years.  All expenses must be approved by the 
  2.12  commissioner of children, families, and learning.  
  2.13     Sec. 3.  Minnesota Statutes 2000, section 123A.444, is 
  2.14  amended to read: 
  2.15     123A.444 [LEVY STATE AID FOR SEVERANCE PAY.] 
  2.16     A joint powers board established under section 123A.443 may 
  2.17  make a levy is eligible for state aid to provide severance pay 
  2.18  and early retirement incentives under section 122A.48, for any 
  2.19  teacher as defined under section 122A.40, subdivision 1, who is 
  2.20  placed on unrequested leave as a result of the cooperative 
  2.21  secondary facility agreement.  A joint powers board making a 
  2.22  levy must certify to each participating district tax levies 
  2.23  sufficient to raise the amount necessary to provide the 
  2.24  district's portion of severance pay and early retirement 
  2.25  incentives.  The tax levy certified to each district must be 
  2.26  expressed as a local tax rate, that, when applied to the 
  2.27  adjusted net tax capacity of all of the participating districts 
  2.28  raises the amount necessary to provide severance pay and early 
  2.29  retirement incentives.  Each participating school district must 
  2.30  include the levy in the next tax roll which it shall certify to 
  2.31  the county auditor, and must remit the collections of the levy 
  2.32  to the joint powers board. 
  2.33     Sec. 4.  Minnesota Statutes 2000, section 123A.485, 
  2.34  subdivision 1, is amended to read: 
  2.35     Subdivision 1.  [ELIGIBILITY AND USE.] A district that has 
  2.36  been reorganized after June 30, 1994, under section 123A.48 is 
  3.1   eligible for consolidation transition revenue.  Revenue is equal 
  3.2   to the sum of aid under subdivision 2 and levy under subdivision 
  3.3   3 aid.  Consolidation transition revenue aid may only be used 
  3.4   according to this section.  Revenue Aid must be used for the 
  3.5   following purposes and may be distributed among these purposes 
  3.6   at the discretion of the district: 
  3.7      (1) to offer early retirement incentives as provided by 
  3.8   section 123A.48, subdivision 23; 
  3.9      (2) to reduce operating debt as defined in section 123B.82; 
  3.10     (3) to enhance learning opportunities for students in the 
  3.11  reorganized district; and 
  3.12     (4) for other costs incurred in the reorganization. 
  3.13     Revenue Aid received and utilized under clause (3) or (4) 
  3.14  may be expended for operating purposes, facilities, and/or 
  3.15  equipment.  
  3.16     Sec. 5.  Minnesota Statutes 2000, section 123A.485, 
  3.17  subdivision 3, is amended to read: 
  3.18     Subd. 3.  [LEVY ADDITIONAL AID.] If the aid available in 
  3.19  subdivision 2 is insufficient to cover the costs of the district 
  3.20  under section 123A.48, subdivision 23, the district may levy the 
  3.21  difference over a period of time not to exceed three years apply 
  3.22  to the commissioner of children, families, and learning for 
  3.23  state aid in an amount not to exceed the unreimbursed costs 
  3.24  incurred by the district.  
  3.25     Sec. 6.  Minnesota Statutes 2000, section 123A.67, 
  3.26  subdivision 3, is amended to read: 
  3.27     Subd. 3.  [REIMBURSEMENT; SPECIAL LEVY STATE AID.] (a) 
  3.28  Liabilities of a dissolved district existing at the time of the 
  3.29  attachment other than bonded debt within the purview of 
  3.30  subdivision 2 must be obligations of the consolidated district 
  3.31  after attachment (in the amount and kind determined by the 
  3.32  commissioner according to subdivision 1, where a dissolved 
  3.33  district is divided), for the payment of which the consolidated 
  3.34  district has a right to reimbursement by special levy or 
  3.35  levies state aid.  The amount of reimbursement will be equal to 
  3.36  the liabilities of the dissolved district for which the 
  4.1   consolidated district is obligated less the aggregate of the 
  4.2   following which has been or will be received by the consolidated 
  4.3   district at or after the time of attachment from or as a result 
  4.4   of the dissolution and attachment of the dissolved district: 
  4.5      (1) all taxes inuring to the consolidating district upon 
  4.6   levies made by the dissolved district; 
  4.7      (2) all cash, bank accounts, investments, and other current 
  4.8   assets; 
  4.9      (3) earned state aids of the dissolved districts; 
  4.10     (4) returns from the sale of property of the dissolved 
  4.11  district. 
  4.12     (b) The amount of such special levy so computed shall be 
  4.13  certified to the county auditor with the other tax requirements 
  4.14  of the consolidated district but separately stated and 
  4.15  identified.  The auditor shall add the amount of special levy so 
  4.16  certified to the school rate for the territory in the 
  4.17  consolidated district which came from the dissolved district and 
  4.18  include it in the levy on the taxable property in that 
  4.19  territory.  The county auditor shall not spread more of the 
  4.20  amount certified for special levy in any year than will amount 
  4.21  to 20 percent of the school levy without the special levy, 
  4.22  leaving the remaining part of the certified amount for levy in 
  4.23  successive years without further certification.  Any amount of 
  4.24  reimbursement to which it is entitled omitted by the 
  4.25  consolidated district from its initial certification for special 
  4.26  levy may be certified in a subsequent year for levy in the same 
  4.27  manner as the levy upon initial certification. 
  4.28     The levy authorized by this subdivision shall be in 
  4.29  addition to those otherwise authorized for a district the 
  4.30  special state aid shall be approved by the commissioner of 
  4.31  children, families, and learning.  
  4.32     Sec. 7.  Minnesota Statutes 2000, section 123A.73, 
  4.33  subdivision 9, is amended to read: 
  4.34     Subd. 9.  [REORGANIZATION OPERATING DEBT LEVIES.] (a) A 
  4.35  district that receives revenue under section 123A.39, 
  4.36  subdivision 3, for cooperation or has combined according to 
  5.1   sections 123A.35 to 123A.43 may levy is eligible for state aid 
  5.2   to eliminate reorganization operating debt as defined in section 
  5.3   123B.82, clause (1).  The amount of the debt must be certified 
  5.4   over a period of five years.  After the effective date of 
  5.5   combination according to sections 123A.35 to 123A.43, the levy 
  5.6   may be certified and spread either 
  5.7      (1) only on the property in the combined district that 
  5.8   would have been taxable in the preexisting district that 
  5.9   incurred the debt, or 
  5.10     (2) on all of the taxable property in the combined district.
  5.11     (b) A district that has reorganized according to section 
  5.12  123A.46 or 123A.48 may levy is eligible for state aid to 
  5.13  eliminate reorganization operating debt as defined in section 
  5.14  123B.82, clause (2).  The amount of debt must be certified over 
  5.15  a period not to exceed five years and may be spread either 
  5.16     (1) only on the property in the newly created or enlarged 
  5.17  district which was taxable in the preexisting district that 
  5.18  incurred the debt, or 
  5.19     (2) on all of the taxable property in the newly created or 
  5.20  enlarged district. 
  5.21     Sec. 8.  Minnesota Statutes 2000, section 123A.73, 
  5.22  subdivision 12, is amended to read: 
  5.23     Subd. 12.  [LEVY STATE AID FOR SEVERANCE PAY OR EARLY 
  5.24  RETIREMENT INCENTIVES.] The board of a newly created or enlarged 
  5.25  district to which part or all of a dissolved district was 
  5.26  attached according to section 123A.46 may levy is eligible for 
  5.27  state aid for severance pay or early retirement incentives for 
  5.28  licensed and nonlicensed employees who resign or retire early as 
  5.29  a result of the dissolution or consolidation, if the 
  5.30  commissioner approves the incentives and the amount to be 
  5.31  levied.  The amount may be levied over a period of up to five 
  5.32  years and must be spread in whole or in part on the property of 
  5.33  a preexisting district or the newly created or enlarged 
  5.34  district, as determined by the board of the newly created or 
  5.35  enlarged district of state aid. 
  5.36     Sec. 9.  Minnesota Statutes 2000, section 123A.76, is 
  6.1   amended to read: 
  6.2      123A.76 [EXPENSES OF TRANSITION.] 
  6.3      The board of a district to which a dissolved district is 
  6.4   attached pursuant to section 123A.46, may, for the purpose of 
  6.5   paying the expenses of negotiations and other administrative 
  6.6   expenses relating to the transition, enter into agreements with 
  6.7   banks or any person to take its orders at any rate of interest 
  6.8   not to exceed seven percent per annum.  These orders shall be 
  6.9   paid by the treasurer of the district from district funds after 
  6.10  the effective date of the dissolution and attachment.  
  6.11  Notwithstanding the provisions of sections 124D.22, 126C.40 to 
  6.12  126C.45, and 126C.48, the district may, in the year the 
  6.13  dissolution and attachment becomes effective, levy receive state 
  6.14  aid in an amount equal to the amount of the orders issued 
  6.15  pursuant to this subdivision and the interest on these orders.  
  6.16  No district shall issue orders for funds or make a levy pursuant 
  6.17  receive state aid according to this subdivision without the 
  6.18  commissioner's approval of the expenses to be paid with the 
  6.19  funds from the orders and levy state aid. 
  6.20     Sec. 10.  Minnesota Statutes 2000, section 123B.53, 
  6.21  subdivision 4, is amended to read: 
  6.22     Subd. 4.  [DEBT SERVICE EQUALIZATION REVENUE.] The debt 
  6.23  service equalization revenue of a district equals the eligible 
  6.24  debt service revenue minus the amount raised by a levy of 12 
  6.25  five percent times the adjusted net tax capacity of the district.
  6.26     Sec. 11.  Minnesota Statutes 2000, section 123B.53, 
  6.27  subdivision 5, is amended to read: 
  6.28     Subd. 5.  [EQUALIZED DEBT SERVICE LEVY.] To obtain debt 
  6.29  service equalization revenue, a district must levy an amount not 
  6.30  to exceed the district's debt service equalization revenue times 
  6.31  the lesser of one or the ratio of: 
  6.32     (1) the quotient derived by dividing the adjusted net tax 
  6.33  capacity of the district for the year before the year the levy 
  6.34  is certified by the adjusted pupil units in the district for the 
  6.35  school year ending in the year prior to the year the levy is 
  6.36  certified; to 
  7.1      (2) $4,000 $10,000. 
  7.2      Sec. 12.  Minnesota Statutes 2000, section 123B.54, is 
  7.3   amended to read: 
  7.4      123B.54 [DEBT SERVICE APPROPRIATION.] 
  7.5      (a) $33,141,000 in fiscal year 2000, $29,400,000 in fiscal 
  7.6   year 2001, $26,934,000 in fiscal year 2002, and 
  7.7   $24,540,000 $161,540,000 in fiscal year 2003 and each year 
  7.8   thereafter is appropriated from the general fund to the 
  7.9   commissioner of children, families, and learning for payment of 
  7.10  debt service equalization aid under section 123B.53.  
  7.11     (b) The appropriations in paragraph (a) must be reduced by 
  7.12  the amount of any money specifically appropriated for the same 
  7.13  purpose in any year from any state fund. 
  7.14     Sec. 13.  Minnesota Statutes 2000, section 123B.57, 
  7.15  subdivision 1, is amended to read: 
  7.16     Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] To receive 
  7.17  health and safety revenue for any fiscal year a district must 
  7.18  submit to the commissioner an application for aid and levy by 
  7.19  the date determined by the commissioner.  The application may be 
  7.20  for hazardous substance removal, fire and life safety code 
  7.21  repairs, labor and industry regulated facility and equipment 
  7.22  violations, and health, safety, and environmental management, 
  7.23  including indoor air quality management.  The application must 
  7.24  include a health and safety program adopted by the school 
  7.25  district board.  The program must include the estimated cost, 
  7.26  per building, of the program by fiscal year.  Upon approval 
  7.27  through the adoption of a resolution by each of an intermediate 
  7.28  district's member school district boards and the approval of the 
  7.29  department of children, families, and learning, a school 
  7.30  district may include its proportionate share of the costs of 
  7.31  health and safety projects for an intermediate district in its 
  7.32  application. 
  7.33     Sec. 14.  Minnesota Statutes 2000, section 123B.57, 
  7.34  subdivision 3, is amended to read: 
  7.35     Subd. 3.  [HEALTH AND SAFETY REVENUE.] A district's health 
  7.36  and safety revenue for a fiscal year equals: 
  8.1      (1) the sum of (a) the total approved cost of the 
  8.2   district's hazardous substance plan for fiscal years 1985 
  8.3   through 1989, plus (b) the total approved cost of the district's 
  8.4   health and safety program for fiscal year 1990 through the 
  8.5   current fiscal year to which the levy is attributable, minus 
  8.6      (2) the sum of (a) the district's total hazardous substance 
  8.7   aid and levy for fiscal years 1985 through 1989 under sections 
  8.8   124.245 and 275.125, subdivision 11c, plus (b) the district's 
  8.9   health and safety revenue under this subdivision, for years 
  8.10  before the current fiscal year to which the levy is 
  8.11  attributable, plus (c) the amount of other federal, state, or 
  8.12  local receipts for the district's hazardous substance or health 
  8.13  and safety programs for fiscal year 1985 through the current 
  8.14  fiscal year to which the levy is attributable. 
  8.15     Sec. 15.  Minnesota Statutes 2000, section 123B.57, 
  8.16  subdivision 5, is amended to read: 
  8.17     Subd. 5.  [HEALTH AND SAFETY AID.] A district's health and 
  8.18  safety revenue is provided entirely through state aid is the 
  8.19  difference between its health and safety revenue and its health 
  8.20  and safety levy.  If a district does not levy the entire amount 
  8.21  permitted, health and safety aid must be reduced in proportion 
  8.22  to the actual amount levied.  Health and safety aid may not be 
  8.23  reduced as a result of reducing a district's health and safety 
  8.24  levy according to section 123B.79.  
  8.25     Sec. 16.  Minnesota Statutes 2000, section 123B.59, 
  8.26  subdivision 1, is amended to read: 
  8.27     Subdivision 1.  [TO QUALIFY.] An independent or special 
  8.28  school district qualifies to participate in the alternative 
  8.29  facilities bonding and levy program if the district has: 
  8.30     (1) more than 66 students per grade; 
  8.31     (2) over 1,850,000 square feet of space; 
  8.32     (3) average age of building space is 15 years or older; 
  8.33     (4) insufficient funds from projected health and safety 
  8.34  revenue and capital facilities revenue to meet the requirements 
  8.35  for deferred maintenance, to make accessibility improvements, or 
  8.36  to make fire, safety, or health repairs; and 
  9.1      (5) a ten-year facility plan approved by the commissioner 
  9.2   according to subdivision 2. 
  9.3      Sec. 17.  Minnesota Statutes 2000, section 123B.59, 
  9.4   subdivision 2, is amended to read: 
  9.5      Subd. 2.  [TEN-YEAR PLAN.] (a) A qualifying district must 
  9.6   have a ten-year facility plan approved by the commissioner prior 
  9.7   to January 1, 2001, that includes an inventory of projects and 
  9.8   costs that would be eligible for: 
  9.9      (1) health and safety revenue; 
  9.10     (2) disabled access levy; and 
  9.11     (3) deferred capital expenditures and maintenance projects 
  9.12  necessary to prevent further erosion of facilities. 
  9.13     (b) The school district must: 
  9.14     (1) annually update the plan but no projects may be added 
  9.15  to the plan after January 1, 2001; 
  9.16     (2) biennially submit a facility maintenance plan; and 
  9.17     (3) indicate whether or not the district will issue bonds 
  9.18  to finance the plan or levy for the costs. 
  9.19     Sec. 18.  Minnesota Statutes 2000, section 123B.59, 
  9.20  subdivision 4, is amended to read: 
  9.21     Subd. 4.  [LEVY PROHIBITED FOR CAPITAL PROJECTS LIMITS ON 
  9.22  PARTICIPATION.] A district that participates in the alternative 
  9.23  facilities bonding and levy program is not eligible to levy and 
  9.24  cannot receive aid under sections 123B.57 and 123B.58 for any 
  9.25  capital projects funded under this section.  A district may levy 
  9.26  and receive aid for health and safety environmental management 
  9.27  costs and health and safety regulatory, hazard assessment, 
  9.28  record keeping, and maintenance programs as defined in section 
  9.29  123A.443, subdivision 2, and approved by the commissioner. 
  9.30     Sec. 19.  Minnesota Statutes 2000, section 123B.59, 
  9.31  subdivision 6, is amended to read: 
  9.32     Subd. 6.  [ALTERNATIVE FACILITIES AID.] A district's 
  9.33  alternative facilities aid is the amount equal to the district's 
  9.34  annual debt service costs, provided that the amount does not 
  9.35  exceed the amount certified to be levied for those purposes for 
  9.36  taxes payable in 1997, or for a district that made a levy under 
 10.1   subdivision 5, paragraph (b), the lesser of the district's 
 10.2   annual levy amount, or one-sixth of the amount of levy that it 
 10.3   certified for that purpose for taxes payable in 1998 approved 
 10.4   alternative facilities revenue. 
 10.5      Sec. 20.  Minnesota Statutes 2000, section 123B.59, 
 10.6   subdivision 7, is amended to read: 
 10.7      Subd. 7.  [ALTERNATIVE FACILITIES APPROPRIATION.] (a) An 
 10.8   amount not to exceed $19,700,000 for fiscal year 2000 and 
 10.9   $20,000,000 $40,000,000 for fiscal year 2001 and each year 
 10.10  thereafter is appropriated from the general fund to the 
 10.11  commissioner of children, families, and learning for payment of 
 10.12  alternative facilities aid under subdivision 6.  
 10.13     (b) The appropriation in paragraph (a) must be reduced by 
 10.14  the amount of any money specifically appropriated for the same 
 10.15  purpose in any year from any state fund. 
 10.16     Sec. 21.  Minnesota Statutes 2000, section 123B.61, is 
 10.17  amended to read: 
 10.18     123B.61 [PURCHASE OF CERTAIN EQUIPMENT.] 
 10.19     The board of a district may issue general obligation 
 10.20  certificates of indebtedness or capital notes subject to the 
 10.21  district debt limits to:  (a) purchase vehicles, computers, 
 10.22  telephone systems, cable equipment, photocopy and office 
 10.23  equipment, technological equipment for instruction, and other 
 10.24  capital equipment having an expected useful life at least as 
 10.25  long as the terms of the certificates or notes; (b) purchase 
 10.26  computer hardware and software, without regard to its expected 
 10.27  useful life, whether bundled with machinery or equipment or 
 10.28  unbundled, together with application development services and 
 10.29  training related to the use of the computer; and (c) prepay 
 10.30  special assessments.  The certificates or notes must be payable 
 10.31  in not more than five years and must be issued on the terms and 
 10.32  in the manner determined by the board, except that certificates 
 10.33  or notes issued to prepay special assessments must be payable in 
 10.34  not more than 20 years.  The certificates or notes may be issued 
 10.35  by resolution and without the requirement for an election.  The 
 10.36  certificates or notes are general obligation bonds for purposes 
 11.1   of section 126C.55.  A tax levy must be made for the payment of 
 11.2   the principal and interest on the certificates or notes, in 
 11.3   accordance with section 475.61, as in the case of bonds.  The 
 11.4   sum of the tax levies under this section and section 123B.62 for 
 11.5   each year must not exceed the amount of the district's total 
 11.6   operating capital revenue for the year the initial debt service 
 11.7   levies are certified.  The district's general education levy for 
 11.8   each year must be reduced by the sum of (1) the amount of the 
 11.9   tax levies for debt service certified for each year for payment 
 11.10  of the principal and interest on the certificates or notes as 
 11.11  required by section 475.61, and (2) any excess amount in the 
 11.12  debt redemption fund used to retire certificates or notes issued 
 11.13  after April 1, 1997, other than amounts used to pay capitalized 
 11.14  interest.  A district using an excess amount in the debt 
 11.15  redemption fund to retire the certificates or notes shall report 
 11.16  the amount used for this purpose to the commissioner by July 15 
 11.17  of the following fiscal year.  A district having an outstanding 
 11.18  capital loan under section 126C.69 or an outstanding debt 
 11.19  service loan under section 126C.68 must not use an excess amount 
 11.20  in the debt redemption fund to retire the certificates or notes. 
 11.21  The district must annually transfer the amount necessary to 
 11.22  repay these certificates or notes from its unreserved general 
 11.23  fund to a reserved account for this purpose. 
 11.24     Sec. 22.  Minnesota Statutes 2000, section 123B.62, is 
 11.25  amended to read: 
 11.26     123B.62 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 
 11.27     (a) In addition to other bonding authority, with approval 
 11.28  of the commissioner, a district may issue general obligation 
 11.29  bonds for certain capital projects under this section.  The 
 11.30  bonds must be used only to make capital improvements including: 
 11.31     (1) under section 126C.10, subdivision 14, total operating 
 11.32  capital revenue uses specified in clauses (4), (6), (7), (8), 
 11.33  (9), and (10); 
 11.34     (2) the cost of energy modifications; 
 11.35     (3) improving handicap accessibility to school buildings; 
 11.36  and 
 12.1      (4) bringing school buildings into compliance with life and 
 12.2   safety codes and fire codes.  
 12.3      (b) Before a district issues bonds under this subdivision, 
 12.4   it must publish notice of the intended projects, the amount of 
 12.5   the bond issue, and the total amount of district indebtedness.  
 12.6      (c) A bond issue tentatively authorized by the board under 
 12.7   this subdivision becomes finally authorized unless a petition 
 12.8   signed by more than 15 percent of the registered voters of the 
 12.9   district is filed with the school board within 30 days of the 
 12.10  board's adoption of a resolution stating the board's intention 
 12.11  to issue bonds.  The percentage is to be determined with 
 12.12  reference to the number of registered voters in the district on 
 12.13  the last day before the petition is filed with the board.  The 
 12.14  petition must call for a referendum on the question of whether 
 12.15  to issue the bonds for the projects under this section.  The 
 12.16  approval of 50 percent plus one of those voting on the question 
 12.17  is required to pass a referendum authorized by this section. 
 12.18     (d) The bonds must be paid off within ten years of 
 12.19  issuance.  The bonds must be issued in compliance with chapter 
 12.20  475, except as otherwise provided in this section.  A tax levy 
 12.21  must be made for the payment of principal and interest on the 
 12.22  bonds in accordance with section 475.61.  The sum of the tax 
 12.23  levies under this section for each year must not exceed the 
 12.24  amount of the district's total operating capital revenue for the 
 12.25  year the initial debt service levies are certified.  The 
 12.26  district's general education levy for each year must be reduced 
 12.27  by the sum of (1) the amount of the tax levies for debt service 
 12.28  certified for each year for payment of the principal and 
 12.29  interest on the bonds, and (2) any excess amount in the debt 
 12.30  redemption fund used to retire bonds issued after April 1, 1997, 
 12.31  other than amounts used to pay capitalized interest.  A district 
 12.32  using an excess amount in the debt redemption fund to retire the 
 12.33  bonds shall report the amount used for this purpose to the 
 12.34  commissioner by July 15 of the following fiscal year.  A 
 12.35  district having an outstanding capital loan under section 
 12.36  126C.69 or an outstanding debt service loan under section 
 13.1   126C.68 must not use an excess amount in the debt redemption 
 13.2   fund to retire the bonds.  The district must annually transfer 
 13.3   the amount necessary to repay these bonds from its unreserved 
 13.4   general fund to a reserved account for this purpose. 
 13.5      (e) Notwithstanding paragraph (d), bonds issued by a 
 13.6   district within the first five years following voter approval of 
 13.7   a combination according to section 123A.37, subdivision 2, must 
 13.8   be paid off within 20 years of issuance.  All the other 
 13.9   provisions and limitation of paragraph (d) apply. 
 13.10     Sec. 23.  Minnesota Statutes 2000, section 124D.135, 
 13.11  subdivision 1, is amended to read: 
 13.12     Subdivision 1.  [REVENUE.] The revenue for early childhood 
 13.13  family education programs for a school district equals $113.50 
 13.14  for fiscal years 2000 and 2001 and $120 for 2002 and later 
 13.15  fiscal years times the greater of: 
 13.16     (1) 150; or 
 13.17     (2) the number of people under five years of age residing 
 13.18  in the district on October 1 of the previous school year. 
 13.19     Early childhood family education revenue is provided 
 13.20  entirely through state aid. 
 13.21     Sec. 24.  Minnesota Statutes 2000, section 124D.135, 
 13.22  subdivision 6, is amended to read: 
 13.23     Subd. 6.  [HOME VISITING LEVY AID.] A district that enters 
 13.24  into a collaborative agreement to provide education services and 
 13.25  social services to families with young children may levy is 
 13.26  eligible for state aid in an amount equal to $1.60 times the 
 13.27  number of people under five years of age residing in the 
 13.28  district on September 1 of the last school year.  Levy revenue 
 13.29  under this subdivision must not be included as revenue under 
 13.30  subdivision 1.  The revenue must be used for home visiting 
 13.31  programs under section 124D.13, subdivision 4.  
 13.32     Sec. 25.  Minnesota Statutes 2000, section 124D.20, 
 13.33  subdivision 1, is amended to read: 
 13.34     Subdivision 1.  [TOTAL COMMUNITY EDUCATION REVENUE.] 
 13.35  Community education revenue equals the sum of a district's 
 13.36  general community education revenue and youth service program 
 14.1   revenue.  Community education revenue is provided entirely 
 14.2   through state aid. 
 14.3      Sec. 26.  Minnesota Statutes 2000, section 124D.22, 
 14.4   subdivision 2, is amended to read: 
 14.5      Subd. 2.  [SCHOOL-AGE CARE REVENUE.] The school-age care 
 14.6   revenue for an eligible district equals the approved additional 
 14.7   cost of providing services to children with disabilities or 
 14.8   children experiencing family or related problems of a temporary 
 14.9   nature who participate in the school-age care program.  Extended 
 14.10  revenue is provided entirely through state aid.  
 14.11     Sec. 27.  Minnesota Statutes 2000, section 124D.56, 
 14.12  subdivision 1, is amended to read: 
 14.13     Subdivision 1.  [REVENUE AMOUNT.] A district that is 
 14.14  eligible according to section 124D.20, subdivision 2, may 
 14.15  receive revenue for a program for adults with disabilities.  
 14.16  Revenue for the program for adults with disabilities for a 
 14.17  district or a group of districts equals the lesser of:  
 14.18     (1) the actual expenditures for approved programs and 
 14.19  budgets; or 
 14.20     (2) $60,000.  
 14.21     Revenue for the adults with disabilities program is 
 14.22  provided entirely through state aid.  
 14.23     Sec. 28.  Minnesota Statutes 2000, section 124D.86, 
 14.24  subdivision 5, is amended to read: 
 14.25     Subd. 5.  [INTEGRATION AID.] A district's integration aid 
 14.26  equals 67 percent for fiscal year 2000 and 78 100 percent for 
 14.27  fiscal year 2001 2003 and thereafter of the district's 
 14.28  integration revenue as defined in subdivision 3. 
 14.29     Sec. 29.  Minnesota Statutes 2000, section 126C.13, 
 14.30  subdivision 1, is amended to read: 
 14.31     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 14.32  commissioner must establish the general education tax rate by 
 14.33  July 1 of each year for levies payable in the following year.  
 14.34  The general education tax capacity rate must be a rate, rounded 
 14.35  up to the nearest hundredth of a percent, that, when applied to 
 14.36  the adjusted net tax capacity general education tax base for all 
 15.1   districts, raises the amount specified in this subdivision.  The 
 15.2   general education tax rate must be the rate that raises 
 15.3   $1,330,000,000 $1,230,000,000 for fiscal year 2001 2003, and 
 15.4   later fiscal years.  The general education tax rate may not be 
 15.5   changed due to changes or corrections made to a district's 
 15.6   adjusted net tax capacity general education tax base after the 
 15.7   tax rate has been established.  
 15.8      Sec. 30.  Minnesota Statutes 2000, section 126C.13, 
 15.9   subdivision 2, is amended to read: 
 15.10     Subd. 2.  [GENERAL EDUCATION LEVY.] To obtain general 
 15.11  education revenue, excluding transition revenue and supplemental 
 15.12  revenue, a district may levy an amount not to exceed the general 
 15.13  education tax rate times the adjusted net tax capacity general 
 15.14  education tax base of the district for the preceding year.  If 
 15.15  the amount of the general education levy would exceed the 
 15.16  general education revenue, excluding transition revenue and 
 15.17  supplemental revenue, the general education levy must be 
 15.18  determined according to subdivision 3.  
 15.19     Sec. 31.  Minnesota Statutes 2000, section 126C.13, 
 15.20  subdivision 3, is amended to read: 
 15.21     Subd. 3.  [GENERAL EDUCATION LEVY; DISTRICTS OFF THE 
 15.22  FORMULA.] If the amount of the general education levy for a 
 15.23  district exceeds the district's general education revenue, 
 15.24  excluding transition revenue and supplemental revenue, the 
 15.25  amount of the general education levy must be limited to the 
 15.26  following: 
 15.27     (1) the district's general education revenue, excluding 
 15.28  transition revenue and supplemental revenue; plus 
 15.29     (2) the amount of the aid reduction for the same school 
 15.30  year according to section 126C.14; minus 
 15.31     (3) payments made for the same school year according to 
 15.32  section 126C.21, subdivision 3. 
 15.33     For purposes of statutory cross-reference, a levy made 
 15.34  according to this subdivision shall be construed to be the levy 
 15.35  made according to subdivision 2. 
 15.36     Sec. 32.  Minnesota Statutes 2000, section 126C.13, 
 16.1   subdivision 4, is amended to read: 
 16.2      Subd. 4.  [GENERAL EDUCATION AID.] A district's general 
 16.3   education aid is the sum of the following amounts:  
 16.4      (1) the product of (i) the difference between the general 
 16.5   education revenue, excluding transition revenue and supplemental 
 16.6   revenue, and the general education levy, times (ii) the ratio of 
 16.7   the actual amount levied to the permitted levy; 
 16.8      (2) transition aid according to section 126C.10, 
 16.9   subdivision 22; 
 16.10     (3) supplemental aid according to section 127A.49; 
 16.11     (4) shared time aid according to section 126C.01, 
 16.12  subdivision 7; and 
 16.13     (5) (3) referendum aid according to section 126C.17. 
 16.14     Sec. 33.  Minnesota Statutes 2000, section 126C.14, is 
 16.15  amended to read: 
 16.16     126C.14 [GENERAL EDUCATION LEVY EQUITY.] 
 16.17     If a district's general education levy is determined 
 16.18  according to section 126C.13, subdivision 3, an amount must be 
 16.19  deducted from state aid authorized in this chapter and chapters 
 16.20  120B, 122A, 123A, 123B, 124D, 125A, and 127A, receivable for the 
 16.21  same school year, and from other state payments receivable for 
 16.22  the same school year authorized in chapter 273.  The aid in 
 16.23  section 124D.111 must not be reduced. 
 16.24     The amount of the deduction equals the difference between: 
 16.25     (1) the general education tax rate, according to section 
 16.26  126C.13, times the district's adjusted net tax capacity general 
 16.27  education tax base used to determine the general education aid 
 16.28  for the same school year; and 
 16.29     (2) the district's general education revenue, excluding 
 16.30  transition revenue and supplemental revenue, for the same school 
 16.31  year, according to section 126C.10. 
 16.32     Sec. 34.  Minnesota Statutes 2000, section 126C.41, 
 16.33  subdivision 1, is amended to read: 
 16.34     Subdivision 1.  [HEALTH INSURANCE.] (a) A district may levy 
 16.35  is eligible for state aid equal to the amount necessary to make 
 16.36  employer contributions for insurance for retired employees under 
 17.1   this subdivision.  
 17.2      (b) The school board of a joint vocational technical 
 17.3   district formed under the provisions formerly codified as 
 17.4   sections 136C.60 to 136C.69 and the school board of a school 
 17.5   district may provide employer-paid hospital, medical, and dental 
 17.6   benefits to a person who: 
 17.7      (1) is eligible for employer-paid insurance under 
 17.8   collective bargaining agreements or personnel plans in effect on 
 17.9   June 30, 1992; 
 17.10     (2) has at least 25 years of service credit in the public 
 17.11  pension plan of which the person is a member on the day before 
 17.12  retirement or, in the case of a teacher, has a total of at least 
 17.13  25 years of service credit in the teachers retirement 
 17.14  association, a first-class city teacher retirement fund, or any 
 17.15  combination of these; 
 17.16     (3) upon retirement is immediately eligible for a 
 17.17  retirement annuity; 
 17.18     (4) is at least 55 and not yet 65 years of age; and 
 17.19     (5) retires on or after May 15, 1992, and before July 21, 
 17.20  1992. 
 17.21     A school board paying insurance under this subdivision may 
 17.22  not exclude any eligible employees. 
 17.23     (c) An employee who is eligible both for the health 
 17.24  insurance benefit under this subdivision and for an early 
 17.25  retirement incentive under a collective bargaining agreement or 
 17.26  personnel plan established by the employer must select either 
 17.27  the early retirement incentive provided under the collective 
 17.28  bargaining agreement personnel plan or the incentive provided 
 17.29  under this subdivision, but may not receive both.  For purposes 
 17.30  of this subdivision, a person retires when the person terminates 
 17.31  active employment and applies for retirement benefits.  The 
 17.32  retired employee is eligible for single and dependent coverages 
 17.33  and employer payments to which the person was entitled 
 17.34  immediately before retirement, subject to any changes in 
 17.35  coverage and employer and employee payments through collective 
 17.36  bargaining or personnel plans, for employees in positions 
 18.1   equivalent to the position from which the employee retired.  The 
 18.2   retired employee is not eligible for employer-paid life 
 18.3   insurance.  Eligibility ceases when the retired employee attains 
 18.4   the age of 65, or when the employee chooses not to receive the 
 18.5   retirement benefits for which the employee has applied, or when 
 18.6   the employee is eligible for employer-paid health insurance from 
 18.7   a new employer.  Coverages must be coordinated with relevant 
 18.8   health insurance benefits provided through the federally 
 18.9   sponsored Medicare program.  
 18.10     (d) Unilateral implementation of this section by a public 
 18.11  employer is not an unfair labor practice for purposes of chapter 
 18.12  179A.  The authority provided in this subdivision for an 
 18.13  employer to pay health insurance costs for certain retired 
 18.14  employees is not subject to the limits in section 179A.20, 
 18.15  subdivision 2a. 
 18.16     (e) If a school district levies receives state aid 
 18.17  according to this subdivision, it may not also levy receive 
 18.18  state aid according to section 123A.73, subdivision 12, for 
 18.19  eligible employees. 
 18.20     Sec. 35.  Minnesota Statutes 2000, section 126C.41, 
 18.21  subdivision 3, is amended to read: 
 18.22     Subd. 3.  [RETIREMENT LEVIES AID.] (1) In addition to the 
 18.23  excess levy authorized in 1976 any district within a city of the 
 18.24  first class which was authorized in 1975 to make a retirement 
 18.25  levy under Minnesota Statutes 1974, section 275.127 and chapter 
 18.26  422A may levy is eligible for state aid in an amount per pupil 
 18.27  unit which is equal to the amount levied in 1975 payable 1976, 
 18.28  under Minnesota Statutes 1974, section 275.127 and chapter 422A, 
 18.29  divided by the number of pupil units in the district in 
 18.30  1976-1977. 
 18.31     (2) In 1979 and each year thereafter, any district which 
 18.32  qualified in 1976 for an extra levy under paragraph (1) shall be 
 18.33  allowed to levy is eligible for state aid in the same amount as 
 18.34  levied for retirement in 1978 under this clause reduced each 
 18.35  year by ten percent of the difference between the amount levied 
 18.36  for retirement in 1971 under Minnesota Statutes 1971, sections 
 19.1   275.127 and 422.01 to 422.54 and the amount levied for 
 19.2   retirement in 1975 under Minnesota Statutes 1974, section 
 19.3   275.127 and chapter 422A. 
 19.4      (3) In 1991 and each year thereafter, a district to which 
 19.5   this subdivision applies may levy is eligible for state aid in 
 19.6   an additional amount required for contributions to the 
 19.7   Minneapolis employees retirement fund as a result of the maximum 
 19.8   dollar amount limitation on state contributions to the fund 
 19.9   imposed under section 422A.101, subdivision 3.  The 
 19.10  additional levy state aid must not exceed the most recent amount 
 19.11  certified by the board of the Minneapolis employees retirement 
 19.12  fund as the district's share of the contribution requirement in 
 19.13  excess of the maximum state contribution under section 422A.101, 
 19.14  subdivision 3.  
 19.15     (4) For taxes payable in 1994 and thereafter, special 
 19.16  school district No. 1, Minneapolis, and independent school 
 19.17  district No. 625, St. Paul, may levy for are eligible for state 
 19.18  aid equal to the increase in the employer retirement fund 
 19.19  contributions, under Laws 1992, chapter 598, article 5, section 
 19.20  1.  
 19.21     (5) If the employer retirement fund contributions under 
 19.22  section 354A.12, subdivision 2a, are increased for fiscal year 
 19.23  1994 or later fiscal years, special school district No. 1, 
 19.24  Minneapolis, and independent school district No. 625, St. Paul, 
 19.25  may levy in payable 1994 or later are eligible for state aid in 
 19.26  an amount equal to the amount derived by applying the net 
 19.27  increase in the employer retirement fund contribution rate of 
 19.28  the respective teacher retirement fund association between 
 19.29  fiscal year 1993 and the fiscal year beginning in the year after 
 19.30  the levy is certified to the total covered payroll of the 
 19.31  applicable teacher retirement fund association.  If an 
 19.32  applicable school district levies receives aid under this 
 19.33  paragraph, they may not levy the district is not eligible for 
 19.34  state aid under paragraph (4). 
 19.35     (6) In addition to the levy state aid authorized under 
 19.36  paragraph (5), special school district No. 1, Minneapolis, may 
 20.1   also levy payable in 1997 or later is also eligible for state 
 20.2   aid in an amount equal to the contributions under section 
 20.3   423A.02, subdivision 3, and may also levy in payable 1994 or 
 20.4   later receive state aid in an amount equal to the state aid 
 20.5   contribution under section 354A.12, subdivision 3b.  Independent 
 20.6   school district No. 625, St. Paul, may levy payable in 1997 or 
 20.7   later is eligible for additional state aid in an amount equal to 
 20.8   the supplemental contributions under section 423A.02, 
 20.9   subdivision 3.  
 20.10     Sec. 36.  Minnesota Statutes 2000, section 126C.41, 
 20.11  subdivision 4, is amended to read: 
 20.12     Subd. 4.  [MINNEAPOLIS HEALTH INSURANCE SUBSIDY.] Each year 
 20.13  special school district No. 1, Minneapolis, may make an 
 20.14  additional levy is eligible for state aid in an amount not to 
 20.15  exceed the amount raised by a net tax rate of .10 percent times 
 20.16  the adjusted net tax capacity for taxes payable in 1991 and 
 20.17  thereafter of the property in the district for the preceding 
 20.18  year.  The proceeds state aid may be used only to subsidize 
 20.19  health insurance costs for eligible teachers as provided in this 
 20.20  section.  
 20.21     "Eligible teacher" means a retired teacher who was a basic 
 20.22  member of the Minneapolis teachers retirement fund association, 
 20.23  who retired before May 1, 1974, or who had 20 or more years of 
 20.24  basic member service in the Minneapolis teacher retirement fund 
 20.25  association and retired before June 30, 1983, and who is not 
 20.26  eligible to receive the hospital insurance benefits of the 
 20.27  federal Medicare program of the Social Security Act without 
 20.28  payment of a monthly premium.  The district must notify eligible 
 20.29  teachers that a subsidy is available.  To obtain a subsidy, an 
 20.30  eligible teacher must submit to the school district a copy of 
 20.31  receipts for health insurance premiums paid.  The district must 
 20.32  disburse the health insurance premium subsidy to each eligible 
 20.33  teacher according to a schedule determined by the district, but 
 20.34  at least annually.  An eligible teacher may receive a subsidy up 
 20.35  to an amount equal to the lesser of 90 percent of the cost of 
 20.36  the eligible teacher's health insurance or up to 90 percent of 
 21.1   the cost of the number two qualified plan of health coverage for 
 21.2   individual policies made available by the Minnesota 
 21.3   comprehensive health association under chapter 62E.  
 21.4      If funds remaining from the previous year's health 
 21.5   insurance subsidy levy revenue, minus the previous year's 
 21.6   required subsidy amount, are sufficient to pay the estimated 
 21.7   current year subsidy, the levy state aid must be discontinued 
 21.8   until the remaining funds are estimated by the school board to 
 21.9   be insufficient to pay the subsidy. 
 21.10     This subdivision does not extend benefits to teachers who 
 21.11  retire after June 30, 1983, and does not create a contractual 
 21.12  right or claim for altering the benefits in this subdivision.  
 21.13  This subdivision does not restrict the district's right to 
 21.14  modify or terminate coverage under this subdivision. 
 21.15     Sec. 37.  Minnesota Statutes 2000, section 126C.42, 
 21.16  subdivision 1, is amended to read: 
 21.17     Subdivision 1.  [1977 STATUTORY OPERATING DEBT.] (a) In 
 21.18  each year in which so required by this subdivision, a district 
 21.19  must make an additional levy is eligible for state aid to 
 21.20  eliminate its statutory operating debt, determined as of June 
 21.21  30, 1977, and certified and adjusted by the commissioner.  This 
 21.22  levy for years prior to taxes payable in 2001 and the subsequent 
 21.23  state aid shall not be made in received for more than 30 
 21.24  successive years and each year before it is made received, it 
 21.25  must be approved by the commissioner and the approval shall 
 21.26  specify its amount.  This levy state aid shall be an amount 
 21.27  which is equal to the amount raised by a levy of a net tax rate 
 21.28  of 1.98 percent times the adjusted net tax capacity of the 
 21.29  district for the preceding year for taxes payable in 2000 and 
 21.30  thereafter; provided that in the last year in which the district 
 21.31  is required to make this levy, it must levy an amount not to 
 21.32  exceed the amount raised by a levy of a net tax rate of 1.98 
 21.33  percent times the adjusted net tax capacity of the district for 
 21.34  the preceding year for taxes payable in 2000 and thereafter.  
 21.35  When the sum of the cumulative levies made pursuant to this 
 21.36  subdivision, state aid received under this subdivision, and 
 22.1   transfers made according to section 123B.79, subdivision 6, 
 22.2   equals an amount equal to the statutory operating debt of the 
 22.3   district, the levy state aid shall be discontinued. 
 22.4      (b) The district must establish a special account in the 
 22.5   general fund which shall be designated "appropriated fund 
 22.6   balance reserve account for purposes of reducing statutory 
 22.7   operating debt" on its books and records.  This account shall 
 22.8   reflect the levy and state aid authorized pursuant to this 
 22.9   subdivision.  The proceeds of this levy and the state aid must 
 22.10  be used only for cash flow requirements and must not be used to 
 22.11  supplement district revenues or income for the purposes of 
 22.12  increasing the district's expenditures or budgets. 
 22.13     (c) Any district which is required to levy pursuant to that 
 22.14  receives state aid under this subdivision must certify the 
 22.15  maximum levy allowable under section 126C.13, subdivision 2, in 
 22.16  that same year. 
 22.17     (d) Each district shall make permanent fund balance 
 22.18  transfers so that the total statutory operating debt of the 
 22.19  district is reflected in the general fund as of June 30, 1977. 
 22.20     Sec. 38.  Minnesota Statutes 2000, section 126C.42, 
 22.21  subdivision 2, is amended to read: 
 22.22     Subd. 2.  [1983 OPERATING DEBT.] (1) Each year, a 
 22.23  district may make an additional levy is eligible for state aid 
 22.24  under this subdivision to eliminate a deficit in the net 
 22.25  unappropriated operating funds of the district, determined as of 
 22.26  June 30, 1983, and certified and adjusted by the commissioner.  
 22.27  This levy may in each year be an amount not to exceed state aid 
 22.28  equals the amount raised by a levy of a net tax rate of 2.2 
 22.29  percent times the adjusted net tax capacity for taxes payable in 
 22.30  2000 and thereafter of the district for the preceding year as 
 22.31  determined by the commissioner.  However, the total amount of 
 22.32  this levy for all years it is made and the state aid received 
 22.33  under this subdivision must not exceed the lesser of (a) the 
 22.34  amount of the deficit in the net unappropriated operating funds 
 22.35  of the district as of June 30, 1983, or (b) the amount of the 
 22.36  aid reduction, according to Laws 1981, Third Special Session 
 23.1   chapter 2, article 2, section 2, but excluding clauses (l), (m), 
 23.2   (n), (o), and (p), and Laws 1982, Third Special Session chapter 
 23.3   1, article 3, section 6, to the district in fiscal year 1983.  
 23.4   When the cumulative levies made and state aid received pursuant 
 23.5   to this subdivision equal the total amount permitted by this 
 23.6   subdivision, the levy state aid must be discontinued.  
 23.7      (2) The proceeds of this levy state aid must be used only 
 23.8   for cash flow requirements and must not be used to supplement 
 23.9   district revenues or income for the purposes of increasing the 
 23.10  district's expenditures or budgets.  
 23.11     (3) A district that levies pursuant to receives state aid 
 23.12  under this subdivision must certify the maximum levy allowable 
 23.13  under section 126C.13, subdivision 2, in that same year. 
 23.14     Sec. 39.  Minnesota Statutes 2000, section 126C.42, 
 23.15  subdivision 3, is amended to read: 
 23.16     Subd. 3.  [1985 OPERATING DEBT.] (1) Each year, a 
 23.17  district may levy is eligible for state aid under this 
 23.18  subdivision to eliminate a deficit in the net unappropriated 
 23.19  balance in the general fund of the district, determined as of 
 23.20  June 30, 1985, and certified and adjusted by the commissioner.  
 23.21  Each year this levy may be an amount not to exceed state aid 
 23.22  equals the amount raised by a levy of a net tax rate of 1.85 
 23.23  percent times the adjusted net tax capacity for taxes payable in 
 23.24  1991 and thereafter of the district for the preceding year.  
 23.25  However, the total amount of this levy made and state aid 
 23.26  received under this subdivision for all years it is made must 
 23.27  not exceed the amount of the deficit in the net unappropriated 
 23.28  balance in the general fund of the district as of June 30, 
 23.29  1985.  When the cumulative levies made pursuant to this 
 23.30  subdivision and the state aid received under this subdivision 
 23.31  equal the total amount permitted by this subdivision, the levy 
 23.32  state aid shall be discontinued.  
 23.33     (2) A district, if eligible, may levy receive revenue under 
 23.34  this subdivision or subdivision 2 but not both. 
 23.35     (3) The proceeds of this levy and state aid must be used 
 23.36  only for cash flow requirements and must not be used to 
 24.1   supplement district revenues or income for the purposes of 
 24.2   increasing the district's expenditures or budgets.  
 24.3      (4) A district that levies receives state aid pursuant to 
 24.4   this subdivision must certify the maximum levy allowable under 
 24.5   section 126C.13, subdivision 2, in that same year. 
 24.6      Sec. 40.  Minnesota Statutes 2000, section 126C.42, 
 24.7   subdivision 4, is amended to read: 
 24.8      Subd. 4.  [1992 OPERATING DEBT.] (a) For taxes payable for 
 24.9   calendar year 2003 fiscal year 2004 and earlier, a district that 
 24.10  has filed a plan pursuant to section 123B.83, subdivision 4, may 
 24.11  levy receive state aid, with the approval of the commissioner, 
 24.12  to eliminate a deficit in the net unappropriated balance in the 
 24.13  operating funds of the district, determined as of June 30, 1992, 
 24.14  and certified and adjusted by the commissioner.  Each year 
 24.15  this levy may state aid must be an amount not to exceed the 
 24.16  lesser of: 
 24.17     (1) an amount raised by a levy of a net tax rate of one 
 24.18  percent times the adjusted net tax capacity of the school 
 24.19  district; or 
 24.20     (2) $100,000. 
 24.21  This amount must be reduced by referendum revenue authorized 
 24.22  under section 126C.17 pursuant to the plan filed under section 
 24.23  123B.83.  However, the total amount of this levy for all years 
 24.24  it is made and the state aid received under this subdivision 
 24.25  must not exceed the amount of the deficit in the net 
 24.26  unappropriated balance in the operating funds of the district as 
 24.27  of June 30, 1992.  When the cumulative levies made pursuant to 
 24.28  this subdivision and state aid received under this subdivision 
 24.29  equal the total amount permitted by this subdivision, the levy 
 24.30  state aid must be discontinued.  
 24.31     (b) A district, if eligible, may levy receive state aid 
 24.32  under this subdivision or subdivision 2 or 3, or under section 
 24.33  123A.73, subdivision 9, or Laws 1992, chapter 499, article 7, 
 24.34  sections 16 or 17, but not under more than one. 
 24.35     (c) The proceeds of this levy and state aid must be used 
 24.36  only for cash flow requirements and must not be used to 
 25.1   supplement district revenues or income for the purposes of 
 25.2   increasing the district's expenditures or budgets.  
 25.3      (d) Any district that levies receives state aid pursuant to 
 25.4   this subdivision must certify the maximum levy allowable under 
 25.5   section 126C.13, subdivision 2, in that same year. 
 25.6      Sec. 41.  Minnesota Statutes 2000, section 126C.43, 
 25.7   subdivision 1, is amended to read: 
 25.8      Subdivision 1.  [ALLOCATION OF ASSETS AND LIABILITIES.] 
 25.9   Upon approval of the commissioner, a district may levy is 
 25.10  eligible for state aid in the amount authorized for liabilities 
 25.11  of dissolved districts pursuant to section 123A.67. 
 25.12     Sec. 42.  Minnesota Statutes 2000, section 126C.43, 
 25.13  subdivision 2, is amended to read: 
 25.14     Subd. 2.  [PAYMENT TO UNEMPLOYMENT INSURANCE PROGRAM TRUST 
 25.15  FUND BY STATE AND POLITICAL SUBDIVISIONS.] Upon approval of the 
 25.16  commissioner, a district may levy is eligible for state aid 
 25.17  equal to the amounts necessary to pay the district's obligations 
 25.18  under section 268.052, subdivision 1, and the amounts necessary 
 25.19  to pay for job placement services offered to employees who may 
 25.20  become eligible for benefits pursuant to section 268.085 for the 
 25.21  previous fiscal year the levy is certified. 
 25.22     Sec. 43.  Minnesota Statutes 2000, section 126C.43, 
 25.23  subdivision 3, is amended to read: 
 25.24     Subd. 3.  [TAX LEVY FOR UNPAID JUDGMENT.] Upon approval of 
 25.25  the commissioner, a district may levy is eligible for state aid 
 25.26  in the amounts necessary to pay the district's obligations under 
 25.27  section 126C.47. 
 25.28     Sec. 44.  Minnesota Statutes 2000, section 126C.43, 
 25.29  subdivision 4, is amended to read: 
 25.30     Subd. 4.  [LEVY LIMITATIONS OF REORGANIZED DISTRICTS 
 25.31  DISTRICT AID.] Upon approval of the commissioner, a district may 
 25.32  levy is eligible for state aid in the amounts authorized by 
 25.33  section 123A.73. 
 25.34     Sec. 45.  Minnesota Statutes 2000, section 126C.43, 
 25.35  subdivision 5, is amended to read: 
 25.36     Subd. 5.  [EXPENSES OF TRANSITION; DISSOLVED DISTRICT.] A 
 26.1   district may levy the amounts is eligible for state aid in the 
 26.2   amount necessary to pay the district's obligations under section 
 26.3   123A.76. 
 26.4      Sec. 46.  Minnesota Statutes 2000, section 126C.43, 
 26.5   subdivision 6, is amended to read: 
 26.6      Subd. 6.  [TEACHER SEVERANCE PAY.] Upon approval of the 
 26.7   commissioner, a district may levy is eligible for state aid for 
 26.8   severance pay required by sections 124D.05, subdivision 3, and 
 26.9   123A.30, subdivision 6. 
 26.10     Sec. 47.  Minnesota Statutes 2000, section 126C.44, is 
 26.11  amended to read: 
 26.12     126C.44 [CRIME-RELATED COSTS LEVY.] 
 26.13     Each district may make a levy on all taxable property 
 26.14  located within the district for the purposes specified in this 
 26.15  section.  The maximum amount which may be levied for all costs 
 26.16  under this section shall be A district is eligible for state aid 
 26.17  for crime-related costs equal to $11 multiplied by the 
 26.18  district's adjusted marginal cost pupil units for the school 
 26.19  year.  The proceeds of the levy state aid must be used for 
 26.20  directly funding the following purposes or for reimbursing the 
 26.21  cities and counties who contract with the district for the 
 26.22  following purposes:  (1) to pay the costs incurred for the 
 26.23  salaries, benefits, and transportation costs of peace officers 
 26.24  and sheriffs for liaison in services in the district's schools; 
 26.25  (2) to pay the costs for a drug abuse prevention program as 
 26.26  defined in section 609.101, subdivision 3, paragraph (e), in the 
 26.27  elementary schools; (3) to pay the costs for a gang resistance 
 26.28  education training curriculum in the district's schools; (4) to 
 26.29  pay the costs for security in the district's schools and on 
 26.30  school property; or (5) to pay the costs for other crime 
 26.31  prevention, drug abuse, student and staff safety, and violence 
 26.32  prevention measures taken by the school district.  The district 
 26.33  must initially attempt to contract for services to be provided 
 26.34  by peace officers or sheriffs with the police department of each 
 26.35  city or the sheriff's department of the county within the 
 26.36  district containing the school receiving the services.  If a 
 27.1   local police department or a county sheriff's department does 
 27.2   not wish to provide the necessary services, the district may 
 27.3   contract for these services with any other police or sheriff's 
 27.4   department located entirely or partially within the school 
 27.5   district's boundaries.  The levy authorized under this section 
 27.6   is not included in determining the school district's levy 
 27.7   limitations. 
 27.8      Sec. 48.  Minnesota Statutes 2000, section 126C.45, is 
 27.9   amended to read: 
 27.10     126C.45 [ICE ARENA LEVY.] 
 27.11     (a) Each year, upon approval of the commissioner, an 
 27.12  independent school district operating and maintaining an ice 
 27.13  arena, may levy for is eligible for state aid in an amount equal 
 27.14  to the net operational costs of the ice arena.  The levy may 
 27.15  state aid must not exceed the net actual costs of operation of 
 27.16  the arena for the previous year.  Net actual costs are defined 
 27.17  as operating costs less any operating revenues. 
 27.18     (b) Any district operating and maintaining an ice arena 
 27.19  must demonstrate to the satisfaction of the office of monitoring 
 27.20  in the department that the district will offer equal sports 
 27.21  opportunities for male and female students to use its ice arena, 
 27.22  particularly in areas of access to prime practice time, team 
 27.23  support, and providing junior varsity and younger level teams 
 27.24  for girls' ice sports and ice sports offerings. 
 27.25     Sec. 49.  [127A.485] [ADJUSTED GENERAL EDUCATION TAX BASE.] 
 27.26     Subdivision 1.  [GENERAL EDUCATION TAX BASE.] "General 
 27.27  education tax base" means the net tax capacity of the taxable 
 27.28  property of the district for class 3 property defined according 
 27.29  to section 273.13, subdivision 24, and class 5 property defined 
 27.30  according to section 273.13, subdivision 31. 
 27.31     Subd. 2.  [ADJUSTED GENERAL EDUCATION TAX BASE.] A school 
 27.32  district's adjusted general education tax base equals its 
 27.33  general education tax base computed under subdivision 1 divided 
 27.34  by its sales ratio for those classes of property computed under 
 27.35  section 127A.48. 
 27.36     Sec. 50.  [OPERATING REFERENDUM REVENUE TASK FORCE.] 
 28.1      Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A task force on 
 28.2   elementary and secondary education funding is established to 
 28.3   examine the issues raised by the repeal of the operating 
 28.4   referendum revenue authorized under Minnesota Statutes, section 
 28.5   126C.17.  The task force must evaluate and propose an 
 28.6   alternative source of funding that is both flexible and 
 28.7   equitable. 
 28.8      Subd. 2.  [MEMBERSHIP.] The task force is composed of five 
 28.9   persons appointed by the governor, five persons appointed by the 
 28.10  speaker of the house of representatives, five persons appointed 
 28.11  by the subcommittee on committees of the senate committee on 
 28.12  rules and administration, and one representative from each of 
 28.13  the following organizations:  the Minnesota school boards 
 28.14  association; the association of metropolitan school districts; 
 28.15  the Minnesota rural education association; schools for equity in 
 28.16  education; the Minnesota association of school administrators; 
 28.17  the Minnesota association of school business officials; and 
 28.18  education Minnesota. 
 28.19     Subd. 3.  [DUTIES.] The task force must examine Minnesota's 
 28.20  current referendum revenue and evaluate alternative forms of 
 28.21  discretionary revenue for Minnesota's elementary and secondary 
 28.22  education system.  The task force may utilize staff of the 
 28.23  department of children, families, and learning, as necessary. 
 28.24     Subd. 4.  [REPORT.] The task force must submit a report of 
 28.25  its findings and recommend the proposed alternative to the 
 28.26  education committees of the house and senate by December 15, 
 28.27  2002. 
 28.28     Sec. 51.  [REPEALER.] 
 28.29     Subdivision 1.  [REVENUE FOR FISCAL YEAR 2003.] Minnesota 
 28.30  Statutes 2000, sections 123B.57, subdivisions 4 and 7; 123B.59, 
 28.31  subdivision 5; 124D.135, subdivisions 3 and 4; 124D.20, 
 28.32  subdivisions 5, 6, and 7; 124D.56, subdivisions 2 and 3; 
 28.33  124D.86, subdivision 4; 126C.10, subdivisions 10, 11, 21, and 
 28.34  22, are repealed for revenue for fiscal years 2003 and later. 
 28.35     Subd. 2.  [REVENUE FOR FISCAL YEAR 2004.] Minnesota 
 28.36  Statutes 2000, section 126C.17, is repealed for revenue for 
 29.1   fiscal years 2004 and later. 
 29.2      Sec. 52.  [EFFECTIVE DATE.] 
 29.3      Sections 1 to 49 are effective for revenue for fiscal years 
 29.4   2003 and later.