HF 920

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:42am

A bill for an act
relating to education; removing obsolete and unneeded mandates; amending
Minnesota Statutes 2008, sections 120B.021, subdivision 1; 120B.11, subdivision
5; 123B.10, subdivision 1; 123B.143, subdivision 1; 123B.57, subdivision
1; 123B.59, subdivision 2; 123B.71, subdivision 8; 123B.76, subdivision 3;
124D.68, subdivision 5; 126C.44; 275.065, subdivisions 3, 6; Laws 2008, chapter
363, article 2, section 46, subdivision 1; repealing Minnesota Statutes 2008,
sections 120B.39; 122A.628; 122A.75; 275.065, subdivisions 5a, 6b, 6c, 8, 9, 10.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 120B.021, subdivision 1, is amended to
read:

Subdivision 1.

Required academic standards.

The following subject areas are
required for statewide accountability:

(1) language arts;

(2) mathematics;

(3) science;

(4) social studies, including history, geography, economics, and government and
citizenship;

(5) health and physical education, for which locally developed academic standards
apply; and

(6) the arts, for which statewide or locally developed academic standards apply,
as determined by the school district. Public elementary and middle schools must offer
deleted text begin at least three deleted text end and require at least two of the following four arts areas: dance; music;
theater; and visual arts. Public high schools new text begin , consistent with section 120B.024, paragraph
(a), clause (5), new text end must offer deleted text begin at least three deleted text end and require at least one of the following five arts
areas: media arts; dance; music; theater; and visual arts.

The commissioner must submit proposed standards in science and social studies to
the legislature by February 1, 2004.

For purposes of applicable federal law, the academic standards for language arts,
mathematics, and science apply to all public school students, except the very few students
with extreme cognitive or physical impairments for whom an individualized education
plan team has determined that the required academic standards are inappropriate.
An individualized education plan team that makes this determination must establish
alternative standards.

A school district, no later than the 2007-2008 school year, must adopt graduation
requirements that meet or exceed state graduation requirements established in law or
rule. A school district that incorporates these state graduation requirements before the
2007-2008 school year must provide students who enter the 9th grade in or before
the 2003-2004 school year the opportunity to earn a diploma based on existing locally
established graduation requirements in effect when the students entered the 9th grade.
District efforts to develop, implement, or improve instruction or curriculum as a result
of the provisions of this section must be consistent with sections 120B.10, 120B.11,
and 120B.20.

The commissioner must include the contributions of Minnesota American Indian
tribes and communities as they relate to the academic standards during the review and
revision of the required academic standards.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
new text end

Sec. 2.

Minnesota Statutes 2008, section 120B.11, subdivision 5, is amended to read:

Subd. 5.

Report.

(a) By October 1 of each year, the school board shall use standard
statewide reporting procedures the commissioner develops and adopt a report new text begin , consistent
with section 120B.36, subdivision 1, new text end that includes the following:

(1) student achievement goals for meeting state academic standards;

(2) results of local assessment data, and any additional test data;

(3) the annual school district improvement plans including staff development goals
under section 122A.60;

(4) information about district and learning site progress in realizing previously
adopted improvement plans; and

(5) the amount and type of revenue attributed to each education site as defined
in section 123B.04.

(b) The school board shall publish the report in the local newspaper with the largest
circulation in the district, by mail, or by electronic means such as the district Web site. If
electronic means are used, school districts must publish notice of the report in a periodical
of general circulation in the district. School districts must make copies of the report
available to the public on request. deleted text begin The board shall make a copy of the report available to
the public for inspection. The board shall send a copy of the report to the commissioner
of education by October 15 of each year.
deleted text end

(c) deleted text begin The title of the report shall contain the name and number of the school district and
read "Annual Report on Curriculum, Instruction, and Student Achievement." deleted text end The report
must include at least the following information about advisory committee membership:

(1) the name of each committee member and the date when that member's term
expires;

(2) the method and criteria the school board uses to select committee members; and

(3) the date by which a community resident must apply to next serve on the
committee.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
new text end

Sec. 3.

Minnesota Statutes 2008, section 123B.10, subdivision 1, is amended to read:

Subdivision 1.

Budgets; form of notification.

(a) Every board must publish revenue
and expenditure budgets for the current year and the actual revenues, expenditures, fund
balances for the prior year and projected fund balances for the current year in a form
prescribed by the commissioner within one week of the acceptance of the final audit by
the board, or November 30, whichever is earlier. The forms prescribed must be designed
so that year to year comparisons of revenue, expenditures and fund balances can be made.

(b) A school board annually must notify the public of its revenue, expenditures, fund
balances, and other relevant budget information. The board must deleted text begin include the budget
information required by this section in the materials provided as a part of its truth in
taxation hearing, deleted text end post the materials in a conspicuous place on the district's official Web
site, including a link to the district's school report card on the Department of Education's
Web site, and publish new text begin a summary of new text end the information new text begin and the address of the district's
official Web site where the information can be found new text end in a qualified newspaper of general
circulation in the district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2008, section 123B.143, subdivision 1, is amended to read:

Subdivision 1.

Contract; duties.

All districts maintaining a classified secondary
school must employ a superintendent who shall be an ex officio nonvoting member of the
school board. The authority for selection and employment of a superintendent must be
vested in the board in all cases. An individual employed by a board as a superintendent
shall have an initial employment contract for a period of time no longer than three years
from the date of employment. Any subsequent employment contract must not exceed a
period of three years. A board, at its discretion, may or may not renew an employment
contract. A board must not, by action or inaction, extend the duration of an existing
employment contract. Beginning 365 days prior to the expiration date of an existing
employment contract, a board may negotiate and enter into a subsequent employment
contract to take effect upon the expiration of the existing contract. A subsequent contract
must be contingent upon the employee completing the terms of an existing contract. If a
contract between a board and a superintendent is terminated prior to the date specified in
the contract, the board may not enter into another superintendent contract with that same
individual that has a term that extends beyond the date specified in the terminated contract.
A board may terminate a superintendent during the term of an employment contract for any
of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
not rely upon an employment contract with a board to assert any other continuing contract
rights in the position of superintendent under section 122A.40. Notwithstanding the
provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
to the contrary, no individual shall have a right to employment as a superintendent based
on order of employment in any district. If two or more districts enter into an agreement for
the purchase or sharing of the services of a superintendent, the contracting districts have
the absolute right to select one of the individuals employed to serve as superintendent
in one of the contracting districts and no individual has a right to employment as the
superintendent to provide all or part of the services based on order of employment in a
contracting district. The superintendent of a district shall perform the following:

(1) visit and supervise the schools in the district, report and make recommendations
about their condition when advisable or on request by the board;

(2) recommend to the board employment and dismissal of teachers;

(3) superintend school grading practices and examinations for promotions;

(4) make reports required by the commissioner; new text begin and
new text end

(5) deleted text begin by January 10, submit an annual report to the commissioner in a manner
prescribed by the commissioner, in consultation with school districts, identifying the
expenditures that the district requires to ensure an 80 percent student passage rate on
the MCA-IIs taken in the eighth grade, identifying the highest student passage rate the
district expects it will be able to attain on the MCA-IIs by grade 12, and the amount of
expenditures that the district requires to attain the targeted student passage rate; and
deleted text end

deleted text begin (6) deleted text end perform other duties prescribed by the board.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2009-2010 school year and later.
new text end

Sec. 5.

Minnesota Statutes 2008, section 123B.57, subdivision 1, is amended to read:

Subdivision 1.

Health and safety program.

deleted text begin (a) deleted text end To receive health and safety
revenue for any fiscal year a district must submit to the commissioner an application for
aid and levy by the date determined by the commissioner. The application may be for
hazardous substance removal, fire and life safety code repairs, labor and industry regulated
facility and equipment violations, and health, safety, and environmental management,
including indoor air quality management. The application must include a health and safety
program adopted by the school district board. The program must include the estimated
cost, per building, of the program by fiscal year. Upon approval through the adoption of
a resolution by each of an intermediate district's member school district boards and the
approval of the Department of Education, a school district may include its proportionate
share of the costs of health and safety projects for an intermediate district in its application.

deleted text begin (b) Health and safety projects with an estimated cost of $500,000 or more per site,
approved after February 1, 2003, are not eligible for health and safety revenue. Health
and safety projects with an estimated cost of $500,000 or more per site, approved after
February 1, 2003, that meet all other requirements for health and safety funding, are
eligible for alternative facilities bonding and levy revenue according to section 123B.59.
A school board shall not separate portions of a single project into components to qualify
for health and safety revenue, and shall not combine unrelated projects into a single project
to qualify for alternative facilities bonding and levy revenue.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 6.

Minnesota Statutes 2008, section 123B.59, subdivision 2, is amended to read:

Subd. 2.

Facility plan.

(a) A district qualifying under subdivision 1, paragraph
(a), must have a ten-year facility plan approved by the commissioner that includes an
inventory of projects and costs that would be eligible for:

(1) health and safety revenue, without restriction as to project size;

(2) disabled access levy; and

(3) deferred capital expenditures and maintenance projects necessary to prevent
further erosion of facilities.

(b) deleted text begin A district qualifying under subdivision 1, paragraph (b), must have a five-year
plan approved by the commissioner that includes an inventory of projects and costs for
health and safety projects with an estimated cost of $500,000 or more per site that would
qualify for health and safety revenue except for the project size limitation in section
123B.57, subdivision 1, paragraph (b).
deleted text end

deleted text begin (c) deleted text end The school district must:

(1) annually update the plans;

(2) biennially submit a facility maintenance plan; and

(3) indicate whether the district will issue bonds to finance the plan or levy for
the costs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 7.

Minnesota Statutes 2008, section 123B.71, subdivision 8, is amended to read:

Subd. 8.

Review and comment.

A school district, a special education cooperative,
or a cooperative unit of government, as defined in section 123A.24, subdivision 2,
must not initiate an installment contract for purchase or a lease agreement, hold a
referendum for bonds, nor solicit bids for new construction, expansion, or remodeling of
an educational facility that requires an expenditure in excess of deleted text begin $500,000 deleted text end new text begin $1,400,000 new text end
per school site prior to review and comment by the commissioner. The commissioner
may exempt a facility maintenance project funded with general education aid and levy,
alternative facilities bonding and levy program, or health and safety revenue from this
provision after reviewing a written request from a school district describing the scope of
work. A school board shall not separate portions of a single project into components to
avoid the requirements of this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for review and comments requested
on or after July 1, 2009.
new text end

Sec. 8.

Minnesota Statutes 2008, section 123B.76, subdivision 3, is amended to read:

Subd. 3.

Expenditures by building.

(a) For the purposes of this section, "building"
means education site as defined in section 123B.04, subdivision 1.

(b) Each district shall deleted text begin maintain separate accounts to deleted text end identify general fund
expenditures for each building new text begin to the extent provided by the uniform financial accounting
and reporting standards for school units new text end . deleted text begin All expenditures for regular instruction,
secondary vocational instruction, and school administration must be reported to
the department separately for each building. All expenditures for special education
instruction, instructional support services, and pupil support services provided within a
specific building must be reported to the department separately for each building. Salary
expenditures reported by building must reflect actual salaries for staff at the building and
must not be based on districtwide averages. All other deleted text end General fund expenditures new text begin not
available at the building level through the uniform financial accounting and reporting
standards new text end may be reported by building or on a districtwide basis.

(c) The department must annually report information showing school district general
fund expenditures per pupil by program category for each building and estimated school
district general fund revenue generated by pupils attending each building on its Web
site. For purposes of this report:

(1) expenditures not reported by building shall be allocated among buildings on a
uniform per pupil basis;

(2) basic skills revenue shall be allocated according to section 126C.10, subdivision
4;

(3) secondary sparsity revenue and elementary sparsity revenue shall be allocated
according to section 126C.10, subdivisions 7 and 8;

(4) alternative teacher compensation revenue shall be allocated according to section
122A.415, subdivision 1;

(5) other general education revenue shall be allocated on a uniform per pupil unit
basis;

(6) first grade preparedness aid shall be allocated according to section 124D.081;

(7) state and federal special education aid and Title I aid shall be allocated in
proportion to district expenditures for these programs by building; and

(8) other general fund revenues shall be allocated on a uniform per pupil basis,
except that the department may allocate other revenues attributable to specific buildings
directly to those buildings.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal years 2010 and later.
new text end

Sec. 9.

Minnesota Statutes 2008, section 124D.68, subdivision 5, is amended to read:

Subd. 5.

Pupil enrollment.

new text begin (a) new text end Any eligible pupil may apply to enroll in an eligible
program. Approval of the resident district is not required for:

(1) an eligible pupil to enroll in any eligible program in a nonresident district under
subdivision 3 or 4 or an area learning center established under section 123A.05; or

(2) an eligible pupil under subdivision 2, to enroll in an adult basic education
program approved under section 124D.52.

new text begin (b) Notwithstanding paragraph (a), a nonresident district must first approve the
enrollment application of any eligible pupil who was expelled under section 121A.45 for a
reason stated in section 124D.03, subdivision 1, paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
new text end

Sec. 10.

Minnesota Statutes 2008, section 126C.44, is amended to read:

126C.44 SAFE SCHOOLS LEVY.

(a) Each district may make a levy on all taxable property located within the district
for the purposes specified in this section. The maximum amount which may be levied
for all costs under this section shall be equal to $30 multiplied by the district's adjusted
marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
used for directly funding the following purposes or for reimbursing the cities and counties
who contract with the district for the following purposes: (1) to pay the costs incurred for
the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
services in the district's schools; (2) to pay the costs for a drug abuse prevention program
as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
(3) to pay the costs for a gang resistance education training curriculum in the district's
schools; (4) to pay the costs for security in the district's schools and on school property; (5)
to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
opt-in suicide prevention tools, and violence prevention measures taken by the school
district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
school social workers, licensed school psychologists, and licensed alcohol and chemical
dependency counselors to help provide early responses to problems. For expenditures
under clause (1), the district must initially attempt to contract for services to be provided
by peace officers or sheriffs with the police department of each city or the sheriff's
department of the county within the district containing the school receiving the services. If
a local police department or a county sheriff's department does not wish to provide the
necessary services, the district may contract for these services with any other police or
sheriff's department located entirely or partially within the school district's boundaries.

(b) A school district that is a member of an intermediate school district may
include in its authority under this section the costs associated with safe schools activities
authorized under paragraph (a) for intermediate school district programs. This authority
must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
This authority is in addition to any other authority authorized under this section. Revenue
raised under this paragraph must be transferred to the intermediate school district.

(c) A school district must set aside at least $3 per adjusted marginal cost pupil
unit of the safe schools levy proceeds for the purposes authorized under paragraph (a),
clause (6). The district must annually certify new text begin either new text end that new text begin : (1) new text end its total spending on services
provided by the employees listed in paragraph (a), clause (6), is not less than the sum of
its expenditures for these purposes, excluding amounts spent under this section, in the
previous year plus the amount spent under this section new text begin ; or (2) that the district's full-time
equivalent number of employees listed in paragraph (a), clause (6), is not less than the
number for the previous year new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2010
and later.
new text end

Sec. 11.

Minnesota Statutes 2008, section 275.065, subdivision 3, is amended to read:

Subd. 3.

Notice of proposed property taxes.

(a) The county auditor shall prepare
and the county treasurer shall deliver after November 10 and on or before November 24
each year, by first class mail to each taxpayer at the address listed on the county's current
year's assessment roll, a notice of proposed property taxes. Upon written request by
the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
instead of on paper or by ordinary mail.

(b) The commissioner of revenue shall prescribe the form of the notice.

(c) The notice must inform taxpayers that it contains the amount of property taxes
each taxing authority proposes to collect for taxes payable the following year. In the
case of a town, or in the case of the state general tax, the final tax amount will be its
proposed tax. deleted text begin In the case of taxing authorities required to hold a public meeting under
subdivision 6, the notice must clearly state that each taxing authority, including regional
library districts established under section 134.201, and including the metropolitan taxing
districts as defined in paragraph (i), but excluding all other special taxing districts and
towns, will hold a public meeting to receive public testimony on the proposed budget and
proposed or final property tax levy, or, in case of a school district, on the current budget
and proposed property tax levy. deleted text end new text begin The notice must clearly state for each city, county, school
district, regional library authority established under section 134.201, and metropolitan
taxing districts as defined in paragraph (i), the time and place of the taxing authority's
regularly scheduled meetings in which the budget and levy will be discussed and the final
budget and levy determined. The taxing authorities must provide the county auditor with
the information to be included in the notice. new text end It must deleted text begin clearly state the time and place of
each taxing authority's meeting, deleted text end new text begin provide new text end a telephone number for the taxing authority that
taxpayers may call if they have questions related to the notice deleted text begin , deleted text end and an address where
comments will be received by mail.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used
for computing property taxes payable in the following year and for taxes payable in the
current year as each appears in the records of the county assessor on November 1 of the
current year; and, in the case of residential property, whether the property is classified as
homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
which the market values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, and state general
tax, net of the residential and agricultural homestead credit under section 273.1384, voter
approved school levy, other local school levy, and the sum of the special taxing districts,
and as a total of all taxing authorities:

(i) the actual tax for taxes payable in the current year; and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for a lake improvement
district as defined under sections 103B.501 to 103B.581, the amount attributable for that
purpose must be separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final tax shall also be its proposed
tax unless the town changes its levy at a special town meeting under section 365.52. If a
school district has certified under section 126C.17, subdivision 9, that a referendum will
be held in the school district at the November general election, the county auditor must
note next to the school district's proposed amount that a referendum is pending and that, if
approved by the voters, the tax amount may be higher than shown on the notice. In the
case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be
listed separately from the remaining amount of the city's levy. In the case of the city of
St. Paul, the levy for the St. Paul Library Agency must be listed separately from the
remaining amount of the city's levy. In the case of Ramsey County, any amount levied
under section 134.07 may be listed separately from the remaining amount of the county's
levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax
under chapter 276A or 473F applies, the proposed tax levy on the captured value or the
proposed tax levy on the tax capacity subject to the areawide tax must each be stated
separately and not included in the sum of the special taxing districts; and

(3) the increase or decrease between the total taxes payable in the current year and
the total proposed taxes, expressed as a percentage.

For purposes of this section, the amount of the tax on homesteads qualifying under
the senior citizens' property tax deferral program under chapter 290B is the total amount
of property tax before subtraction of the deferred property tax amount.

(e) The notice must clearly state that the proposed or final taxes do not include
the following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified,
including bond referenda and school district levy referenda;

(3) a levy limit increase approved by the voters by the first Tuesday after the first
Monday in November of the levy year as provided under section 275.73;

(4) amounts necessary to pay cleanup or other costs due to a natural disaster
occurring after the date the proposed taxes are certified;

(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and

(6) the contamination tax imposed on properties which received market value
reductions for contamination.

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or
the county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
renter, or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within
three days of receipt of the notice, whichever is later. A taxpayer may notify the county
treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
which the notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision deleted text begin , subdivisions deleted text end new text begin and subdivision new text end 5a deleted text begin and 6 deleted text end ,
"metropolitan special taxing districts" means the following taxing districts in the
seven-county metropolitan area that levy a property tax for any of the specified purposes
listed below:

(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
473.446, 473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
and

(3) Metropolitan Mosquito Control Commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the
county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
398A shall be included with the appropriate county's levy deleted text begin and shall be discussed at that
county's public hearing deleted text end .

(j) The governing body of a county, city, or school district may, with the consent
of the county board, include supplemental information with the statement of proposed
property taxes about the impact of state aid increases or decreases on property tax
increases or decreases and on the level of services provided in the affected jurisdiction.
This supplemental information may include information for the following year, the current
year, and for as many consecutive preceding years as deemed appropriate by the governing
body of the county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and
local government purchases;

(2) population growth and decline;

(3) state or federal government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 12.

Minnesota Statutes 2008, section 275.065, subdivision 6, is amended to read:

Subd. 6.

deleted text begin Public hearing; deleted text end Adoption of budget and levy.

deleted text begin (a) For purposes of this
section, the following terms shall have the meanings given:
deleted text end

deleted text begin (1) "Initial hearing" means the first and primary hearing held to discuss the taxing
authority's proposed budget and proposed property tax levy for taxes payable in the
following year, or, for school districts, the current budget and the proposed property tax
levy for taxes payable in the following year.
deleted text end

deleted text begin (2) "Continuation hearing" means a hearing held to complete the initial hearing, if
the initial hearing is not completed on its scheduled date.
deleted text end

deleted text begin (3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final
property tax levy, and, in the case of taxing authorities other than school districts, the final
budget, for taxes payable in the following year.
deleted text end

deleted text begin (b) Between November 29 and December 20, the governing bodies of a city that has a
population over 500, county, metropolitan special taxing districts as defined in subdivision
3, paragraph (i), and regional library districts shall each hold an initial public hearing
to discuss and seek public comment on its final budget and property tax levy for taxes
payable in the following year, and the governing body of the school district shall hold an
initial public hearing to review its current budget and proposed property tax levy for taxes
payable in the following year. The metropolitan special taxing districts shall be required to
hold only a single joint initial public hearing, the location of which will be determined by
the affected metropolitan agencies. A city, county, metropolitan special taxing district as
defined in subdivision 3, paragraph (i), regional library district established under section
134.201, or school district is not required to hold a public hearing under this subdivision
unless its proposed property tax levy for taxes payable in the following year, as certified
under subdivision 1, has increased over its final property tax levy for taxes payable in the
current year by a percentage that is greater than the percentage increase in the implicit
price deflator for government consumption expenditures and gross investment for state
and local governments prepared by the Bureau of Economic Analysts of the United States
Department of Commerce for the 12-month period ending March 31 of the current year.
deleted text end

deleted text begin (c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than
Saturday. No initial hearing may be held on a Sunday.
deleted text end

deleted text begin (d) At the initial hearing under this subdivision, the percentage increase in property
taxes proposed by the taxing authority, if any, and the specific purposes for which property
tax revenues are being increased must be discussed. During the discussion, the governing
body shall hear comments regarding a proposed increase and explain the reasons for the
proposed increase. The public shall be allowed to speak and to ask questions. At the public
hearing, the school district must also provide and discuss information on the distribution
of its revenues by revenue source, and the distribution of its spending by program area.
deleted text end

deleted text begin (e) If the initial hearing is not completed on its scheduled date, the taxing authority
must announce, prior to adjournment of the hearing, the date, time, and place for the
continuation of the hearing. The continuation hearing must be held at least five business
days but no more than 14 business days after the initial hearing. A continuation hearing
may not be held later than December 20 except as provided in paragraphs (f) and (g).
A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than
Saturday. No continuation hearing may be held on a Sunday.
deleted text end

deleted text begin (f) The governing body of a county shall hold its initial hearing on the first Thursday
in December each year, and may hold additional initial hearings on other dates before
December 20 if necessary for the convenience of county residents. If the county needs a
continuation of its hearing, the continuation hearing shall be held on the third Tuesday
in December. If the third Tuesday in December falls on December 21, the county's
continuation hearing shall be held on Monday, December 20.
deleted text end

deleted text begin (g) The metropolitan special taxing districts shall hold a joint initial public hearing
on the first Wednesday of December. A continuation hearing, if necessary, shall be held on
the second Wednesday of December even if that second Wednesday is after December 10.
deleted text end

deleted text begin (h) The county auditor shall provide for the coordination of initial and continuation
hearing dates for all school districts and cities within the county to prevent conflicts under
clauses (i) and (j).
deleted text end

deleted text begin (i) By August 10, each school board and the board of the regional library district
shall certify to the county auditors of the counties in which the school district or regional
library district is located the dates on which it elects to hold its initial hearing and any
continuation hearing. If a school board or regional library district does not certify these
dates by August 10, the auditor will assign the initial and continuation hearing dates. The
dates elected or assigned must not conflict with the initial and continuation hearing dates
of the county or the metropolitan special taxing districts.
deleted text end

deleted text begin (j) By August 20, the county auditor shall notify the clerks of the cities within the
county of the dates on which school districts and regional library districts have elected to
hold their initial and continuation hearings. At the time a city certifies its proposed levy
under subdivision 1 it shall certify the dates on which it elects to hold its initial hearing and
any continuation hearing. Until September 15, the first and second Mondays of December
are reserved for the use of the cities. If a city does not certify its hearing dates by
September 15, the auditor shall assign the initial and continuation hearing dates. The dates
elected or assigned for the initial hearing must not conflict with the initial hearing dates
of the county, metropolitan special taxing districts, regional library districts, or school
districts within which the city is located. To the extent possible, the dates of the city's
continuation hearing should not conflict with the continuation hearing dates of the county,
metropolitan special taxing districts, regional library districts, or school districts within
which the city is located. This paragraph does not apply to cities of 500 population or less.
deleted text end

deleted text begin (k) The county initial hearing date and the city, metropolitan special taxing district,
regional library district, and school district initial hearing dates must be designated on
the notices required under subdivision 3. The continuation hearing dates need not be
stated on the notices.
deleted text end

deleted text begin (l) At a subsequent hearing, each county, school district, city over 500 population,
and metropolitan special taxing district may amend its proposed property tax levy
and must adopt a final property tax levy. Each county, city over 500 population, and
metropolitan special taxing district may also amend its proposed budget and must adopt a
final budget at the subsequent hearing. The final property tax levy must be adopted prior
to adopting the final budget. A school district is not required to adopt its final budget at the
subsequent hearing. The subsequent hearing of a taxing authority must be held on a date
subsequent to the date of the taxing authority's initial public hearing. If a continuation
hearing is held, the subsequent hearing must be held either immediately following the
continuation hearing or on a date subsequent to the continuation hearing. The subsequent
hearing may be held at a regularly scheduled board or council meeting or at a special
meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing
of a taxing authority does not have to be coordinated by the county auditor to prevent a
conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any
other taxing authority. All subsequent hearings must be held prior to five working days
after December 20 of the levy year. The date, time, and place of the subsequent hearing
must be announced at the initial public hearing or at the continuation hearing.
deleted text end

deleted text begin (m) deleted text end new text begin (a) new text end The property tax levy certified under section 275.07 by a city of any
population, county, metropolitan special taxing district, regional library district, or school
district must not exceed the proposed levy determined under subdivision 1, except by an
amount up to the sum of the following amounts:

(1) the amount of a school district levy whose voters approved a referendum to
increase taxes under section 123B.63, subdivision 3, or 126C.17, subdivision 9, after
the proposed levy was certified;

(2) the amount of a city or county levy approved by the voters after the proposed
levy was certified;

(3) the amount of a levy to pay principal and interest on bonds approved by the
voters under section 475.58 after the proposed levy was certified;

(4) the amount of a levy to pay costs due to a natural disaster occurring after the
proposed levy was certified, if that amount is approved by the commissioner of revenue
under subdivision 6a;

(5) the amount of a levy to pay tort judgments against a taxing authority that become
final after the proposed levy was certified, if the amount is approved by the commissioner
of revenue under subdivision 6a;

(6) the amount of an increase in levy limits certified to the taxing authority by the
commissioner of education or the commissioner of revenue after the proposed levy was
certified; and

(7) the amount required under section 126C.55.

deleted text begin (n) deleted text end new text begin (b) new text end This subdivision does not apply to towns and special taxing districts other
than regional library districts and metropolitan special taxing districts.

deleted text begin (o) deleted text end new text begin (c) new text end Notwithstanding the requirements of this section, the employer is required to
meet and negotiate over employee compensation as provided for in chapter 179A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 13.

Laws 2008, chapter 363, article 2, section 46, subdivision 1, is amended to
read:

Subdivision 1.

Capital account transfers.

Notwithstanding any law to the contrary,
on June 30 deleted text begin , deleted text end new text begin of new text end 2008, new text begin 2009, and 2010, new text end a school district may transfer money from its
reserved for operating capital account to its undesignated balance in the general fund. The
amount transferred by any school district must not exceed $51 times the district's adjusted
marginal cost pupil units for new text begin the second preceding new text end fiscal year deleted text begin 2007 deleted text end . This transfer new text begin annually
new text end may occur only after the school board has adopted a written resolution stating the amount
of the transfer and declaring that the school district's operating capital needs are being met.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2008, sections 120B.39; 122A.628; and 122A.75, new text end new text begin are
repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2008, section 275.065, subdivisions 5a, 6b, 6c, 8, 9, and
10, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) of this section is effective the day following
final enactment and paragraph (b) of this section is effective for taxes payable in 2010
and thereafter.
new text end