as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to education; excluding commercial and 1.3 industrial property and certain farm lands from the 1.4 tax base referendum levies are spread against; 1.5 creating a statewide equalization property tax on 1.6 commercial and industrial property; funding 1.7 equalization aid; requiring existing referendum levies 1.8 to be reauthorized; eliminating certain caps on 1.9 referendum revenue; appropriating money; amending 1.10 Minnesota Statutes 1994, sections 124.214, 1.11 subdivisions 2 and 3; 124.248, subdivision 3; 1.12 124.2727, subdivision 6b; 124.273, subdivision 1b; 1.13 124.32, subdivisions 1b and 1f; 124.322, subdivisions 1.14 1a and 3; 124.323, subdivision 1; 124.574, subdivision 1.15 2b; 124.961; 124A.02, by adding a subdivision; 1.16 124A.03, subdivisions 1c, 1e, 1f, 1g, 2, 2a, and by 1.17 adding subdivisions; 124A.22, subdivision 2; 125.1895, 1.18 subdivision 4; and 275.065, subdivision 3; proposing 1.19 coding for new law as Minnesota Statutes, chapter 1.20 124D; repealing Minnesota Statutes 1994, sections 1.21 124.321; and 124.322, subdivision 4. 1.22 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.23 Section 1. Minnesota Statutes 1994, section 124.214, 1.24 subdivision 2, is amended to read: 1.25 Subd. 2. [ABATEMENTS.] Whenever by virtue of chapter 278, 1.26 sections 270.07, 375.192, or otherwise, the net tax capacity of 1.27 any school district for any taxable year is changed after the 1.28 taxes for that year have been spread by the county auditor and 1.29 the local tax rate as determined by the county auditor based 1.30 upon the original net tax capacity is applied upon the changed 1.31 net tax capacities, the county auditor shall, prior to February 1.32 1 of each year, certify to the commissioner of education the 1.33 amount of any resulting net revenue loss that accrued to the 2.1 school district during the preceding year. Each year, the 2.2 commissioner shall pay an abatement adjustment to the district 2.3 in an amount calculated according to the provisions of this 2.4 subdivision. This amount shall be deducted from the amount of 2.5 the levy authorized by section 124.912, subdivision 9. The 2.6 amount of the abatement adjustment shall be the product of: 2.7 (1) the net revenue loss as certified by the county 2.8 auditor, times 2.9 (2) the ratio of: 2.10 (a) the sum of the amounts of the district's certified levy 2.11 in the preceding year according to the following: 2.12 (i) section 124A.23 if the district receives general 2.13 education aid according to that section, or section 124B.20, if 2.14 the education district of which the district is a member 2.15 receives general education aid according to that section; 2.16 (ii) section 124.226, subdivisions 1 and 4, if the district 2.17 receives transportation aid according to section 124.225; 2.18 (iii) section 124.243, if the district receives capital 2.19 expenditure facilities aid according to that section; 2.20 (iv) section 124.244, if the district receives capital 2.21 expenditure equipment aid according to that section; 2.22 (v) section 124.83, if the district receives health and 2.23 safety aid according to that section; 2.24 (vi) sections 124.2713, 124.2714, and 124.2715, if the 2.25 district receives aid for community education programs according 2.26 to any of those sections; 2.27 (vii) section 124.2711, subdivision 2a, if the district 2.28 receives early childhood family education aid according to 2.29 section 124.2711; 2.30 (viii)section 124.321, subdivision 3, if the district2.31receives special education levy equalization aid according to2.32that section;2.33(ix)section 124A.03, subdivision 1g, if the district 2.34 receives referendum equalization aid according to that section; 2.35 and 2.36(x)(ix) section 124A.22, subdivision 4a, if the district 3.1 receives training and experience aid according to that section; 3.2 (b) to the total amount of the district's certified levy in 3.3 the preceding October, plus or minus auditor's adjustments. 3.4 Sec. 2. Minnesota Statutes 1994, section 124.214, 3.5 subdivision 3, is amended to read: 3.6 Subd. 3. [EXCESS TAX INCREMENT.] If a return of excess tax 3.7 increment is made to a school district pursuant to section 3.8 469.176, subdivision 2, or upon decertification of a tax 3.9 increment district, the school district's aid and levy 3.10 limitations must be adjusted for the fiscal year in which the 3.11 excess tax increment is paid under the provisions of this 3.12 subdivision. 3.13 (a) An amount must be subtracted from the school district's 3.14 aid for the current fiscal year equal to the product of: 3.15 (1) the amount of the payment of excess tax increment to 3.16 the school district, times 3.17 (2) the ratio of: 3.18 (A) the sum of the amounts of the school district's 3.19 certified levy for the fiscal year in which the excess tax 3.20 increment is paid according to the following: 3.21 (i) section 124A.23, if the district receives general 3.22 education aid according to that section, or section 124B.20, if 3.23 the education district of which the district is a member 3.24 receives general education aid according to that section; 3.25 (ii) section 124.226, subdivisions 1 and 4, if the school 3.26 district receives transportation aid according to section 3.27 124.225; 3.28 (iii) section 124.243, if the district receives capital 3.29 expenditure facilities aid according to that section; 3.30 (iv) section 124.244, if the district receives capital 3.31 expenditure equipment aid according to that section; 3.32 (v) section 124.83, if the district receives health and 3.33 safety aid according to that section; 3.34 (vi) sections 124.2713, 124.2714, and 124.2715, if the 3.35 district receives aid for community education programs according 3.36 to any of those sections; 4.1 (vii) section 124.2711, subdivision 2a, if the district 4.2 receives early childhood family education aid according to 4.3 section 124.2711; 4.4 (viii)section 124.321, subdivision 3, if the district4.5receives special education levy equalization aid according to4.6that section;4.7(ix)section 124A.03, subdivision 1g, if the district 4.8 receives referendum equalization aid according to that section; 4.9 and 4.10(x)(ix) section 124A.22, subdivision 4a, if the district 4.11 receives training and experience aid according to that section; 4.12 (B) to the total amount of the school district's certified 4.13 levy for the fiscal year, plus or minus auditor's adjustments. 4.14 (b) An amount must be subtracted from the school district's 4.15 levy limitation for the next levy certified equal to the 4.16 difference between: 4.17 (1) the amount of the distribution of excess increment, and 4.18 (2) the amount subtracted from aid pursuant to clause (a). 4.19 If the aid and levy reductions required by this subdivision 4.20 cannot be made to the aid for the fiscal year specified or to 4.21 the levy specified, the reductions must be made from aid for 4.22 subsequent fiscal years, and from subsequent levies. The school 4.23 district shall use the payment of excess tax increment to 4.24 replace the aid and levy revenue reduced under this subdivision. 4.25 This subdivision applies only to the total amount of excess 4.26 increments received by a school district for a calendar year 4.27 that exceeds $25,000. 4.28 Sec. 3. Minnesota Statutes 1994, section 124.248, 4.29 subdivision 3, is amended to read: 4.30 Subd. 3. [SPECIAL EDUCATION AID.] Special education aid 4.31 shall be paid to an outcome-based school according to section 4.32 124.32 as though it were a school district. The school may 4.33 charge tuition to the district of residence as provided in 4.34 section 120.17, subdivision 4. The outcome-based school shall 4.35 allocate its special education levy equalization revenue to the 4.36 resident districts of the pupils attending the outcome-based 5.1 school as though it were a cooperative, as provided in section 5.3124.321124.32, subdivision2, paragraph (a), clause (1)12. 5.4The districts of residence shall levy as though they were5.5participating in a cooperative, as provided in section 124.321,5.6subdivision 3.5.7 Sec. 4. Minnesota Statutes 1994, section 124.2727, 5.8 subdivision 6b, is amended to read: 5.9 Subd. 6b. [DISTRICT COOPERATION LEVY.] To receive district 5.10 cooperation revenue, a district may levy an amount equal to the 5.11 district's cooperation revenue multiplied by the lesser of one, 5.12 or the ratio of the quotient derived by dividing the adjusted 5.13 net tax capacity of the district for the year preceding the year 5.14 the levy is certified by the actual pupil units in the district 5.15 for the school year to which the levy is attributable 5.16 to$3,500the equalizing factor defined in section 124A.02. 5.17 Sec. 5. Minnesota Statutes 1994, section 124.273, 5.18 subdivision 1b, is amended to read: 5.19 Subd. 1b. [TEACHERS SALARIES.] Each year the state shall 5.20 pay a school district a portion of the salary of one full-time 5.21 equivalent teacher for each 40 pupils of limited English 5.22 proficiency enrolled in the district. Notwithstanding the 5.23 foregoing, the state shall pay a portion of the salary of 5.24 one-half of a full-time equivalent teacher to a district with 20 5.25 or fewer pupils of limited English proficiency enrolled. The 5.26 portion for a full-time teacher shall bethe lesser of 55.268 5.27 percent of the salaryor $15,320. The portion for a part-time 5.28 or limited-time teacher shall bethe lesser of 55.268 percent 5.29 of the salaryor the product of $15,320times the ratio of the 5.30 person's actual employment to full-time employment. For the 5.31 purposes of this subdivision, a teacher includes nonlicensed 5.32 personnel who provide direct instruction to students of limited 5.33 English proficiency under the supervision of a licensed teacher. 5.34 Sec. 6. Minnesota Statutes 1994, section 124.32, 5.35 subdivision 1b, is amended to read: 5.36 Subd. 1b. [TEACHERS SALARIES.] (a) Each year the state 5.37 shall pay to a district a portion of the salary of each 6.1 essential person employed in the district's program for children 6.2 with a disability during the regular school year, whether the 6.3 person is employed by one or more districts. The state shall 6.4 also pay to the Minnesota state academy for the deaf or the 6.5 Minnesota state academy for the blind a part of the salary of 6.6 each instructional aide assigned to a child attending the 6.7 academy, if that aide is required by the child's individual 6.8 education plan. 6.9 (b)For the 1992-1993 school year and thereafter,The 6.10 portion for a full-time person is an amountnot to exceed the6.11lesser of 55.2equal to 68 percent of the salaryor $15,320. 6.12 The portion for a part-time or limited-time person is an 6.13 amountnot to exceed the lesser of 55.2equal to 68 percent of 6.14 the salaryor the product of $15,320times the ratio of the 6.15 person's actual employment to full-time employment. 6.16 Sec. 7. Minnesota Statutes 1994, section 124.32, 6.17 subdivision 1f, is amended to read: 6.18 Subd. 1f. [ESSENTIAL PERSONNEL.] For the purposes of this 6.19 sectionand section 124.321, essential personnel means teachers, 6.20 related services and support services staff providing direct 6.21 services to students. 6.22 Sec. 8. Minnesota Statutes 1994, section 124.322, 6.23 subdivision 1a, is amended to read: 6.24 Subd. 1a. [DEFINITIONS.] In this section, the definitions 6.25 in this subdivision apply. 6.26 (a) "Base revenue" means the following: 6.27 (1) for the first fiscal year after approval of the 6.28 district's application, base revenue means the sum of the 6.29 district's revenue for the preceding fiscal year for its special 6.30 education program undersectionssection 124.32, subdivisions 6.31 1b, 1d, 2, 5, and 10, and 124.321, subdivision 1; 6.32 (2) for the second fiscal year after approval of a 6.33 district's application, base revenue means the sum of the 6.34 district's revenue for the second prior fiscal year for its 6.35 special education program undersectionssection 124.32, 6.36 subdivisions 1b, 1d, 2, 5, and 10, and 124.321, subdivision 1; 7.1 and 7.2 (3) for the third fiscal year after approval of a 7.3 district's application, and thereafter, base revenue means the 7.4 sum of the revenue a district would have been entitled to in the 7.5 second prior fiscal year for its special education program under 7.6sectionssection 124.32, subdivisions 1b, 1d, 2, 5, and 10,and7.7124.321, subdivision 1,based on activities defined as 7.8 reimbursable under state board rules for special education and 7.9 nonspecial education students, and additional activities as 7.10 detailed and approved by the commissioner of education. 7.11 (b) "Base aid" means the following: 7.12 (1) for the first fiscal year after approval of a 7.13 district's application, base aid means the sum of the district's 7.14 gross aid for the preceding fiscal year for its special 7.15 education program under section 124.32, subdivisions 1b, 1d, 2, 7.16 5, and 10; 7.17 (2) for the second fiscal year after approval of a 7.18 district's application, base aid means the sum of the district's 7.19 gross aid for the second prior fiscal year for its special 7.20 education program under section 124.32, subdivisions 1b, 1d, 2, 7.21 5, and 10; and 7.22 (3) for the third fiscal year after approval of a 7.23 district's application and thereafter, base aid means the sum of 7.24 the gross aid the district would have been entitled to in the 7.25 second prior fiscal year for its special education program under 7.26 section 124.32, subdivisions 1b, 1d, 2, 5, and 10, based on 7.27 activities defined as reimbursable under state board of 7.28 education rules for special education and nonspecial education 7.29 students, and additional activities as detailed and approved by 7.30 the commissioner of education in the application plan. 7.31 (c) Notwithstanding paragraphs (a) and (b), base revenue 7.32 and base aid for 1995 and later fiscal years must not include 7.33 revenue and aid under section 124.32, subdivision 5. 7.34 (d) "Alternative delivery revenue inflator" means: 7.35 (1) for the first fiscal year after approval of a 7.36 district's application, the greater of 1.017 or the ratio of (i) 8.1 the statewide average special education revenue under 8.2sectionssection 124.32and 124.321per pupil in average daily 8.3 membership for the current fiscal year, to (ii) the statewide 8.4 average special education revenue per pupil in average daily 8.5 membership for the previous fiscal year. 8.6 (2) for the second and later fiscal years, the greater of 8.7 1.034 or the ratio of (i) the statewide average special 8.8 education revenue undersectionssection 124.32and 124.321per 8.9 pupil in average daily membership for the current fiscal year, 8.10 to (ii) the statewide average special education revenue per 8.11 pupil in average daily membership for the second prior fiscal 8.12 year. 8.13 (e) The commissioner of education shall adjust each 8.14 district's base revenue and base aid to reflect any changes in 8.15 special education services required by rule or statute. 8.16 Sec. 9. Minnesota Statutes 1994, section 124.322, 8.17 subdivision 3, is amended to read: 8.18 Subd. 3. [ALTERNATIVE DELIVERY AID.] (a) For the first 8.19 fiscal year after approval of an application, a district's 8.20 alternative delivery aid equals its base aid multiplied by the 8.21 product of 1.017 times the ratio of the district's average daily 8.22 membership for the current fiscal year to the district's average 8.23 daily membership for the preceding fiscal year. For the second 8.24 and later fiscal years a district's alternative delivery aid 8.25 equals its base aid multiplied by the product of 1.034 times the 8.26 ratio of the district's average daily membership for the current 8.27 fiscal year to the district's average daily membership for the 8.28 second preceding fiscal year. A district that receives aid 8.29 under this subdivision shall not receive aid under section 8.30 124.32, subdivisions 1b, 1d, 2, 5, and 10, for the same fiscal 8.31 year. 8.32 (b) For fiscal year 1996 and thereafter, a district's aid 8.33 is equal to the amount calculated in paragraph (a) plus an 8.34 amount equal to a levy determined according to subdivision 4. 8.35 Sec. 10. Minnesota Statutes 1994, section 124.323, 8.36 subdivision 1, is amended to read: 9.1 Subdivision 1. [DEFINITIONS.] In this section, the 9.2 definitions in this subdivision apply. 9.3 (a) "Unreimbursed special education cost" means the sum of 9.4 the following: 9.5 (1) expenditures for teachers' salaries, contracted 9.6 services, supplies, and equipment eligible for revenue under 9.7 sections 124.32, subdivisions 1b, 1d, 2, and 10, and 124.322, 9.8 subdivision 2; plus 9.9 (2) expenditures for tuition bills received under section 9.10 120.17; minus 9.11 (3) revenue for teachers' salaries, contracted services, 9.12 supplies, and equipment under sections 124.32, subdivisions 1b, 9.13 1d, 2, and 10; 124.321, subdivision 1, clause (1);, and 124.322, 9.14 subdivision 2; minus 9.15 (4) tuition receipts under section 120.17. 9.16 (b) "General revenue" means the sum of the general 9.17 education revenue according to section 124A.22, subdivision 1, 9.18 plus the total referendum revenue according to section 124A.03, 9.19 subdivision 1e. 9.20 Sec. 11. Minnesota Statutes 1994, section 124.574, 9.21 subdivision 2b, is amended to read: 9.22 Subd. 2b. [SALARIES.] (a) Each year the state shall pay to 9.23 any district or cooperative center a portion of the salary of 9.24 each essential licensed person who provides direct instructional 9.25 services to students, employed during that fiscal year for 9.26 services rendered in that district's or center's secondary 9.27 vocational education programs for children with a disability. 9.28 (b)For fiscal year 1993 and thereafter,The portion for a 9.29 full-time person is an amount not to exceedthe lesser of 55.29.30 68 percent of the salaryor $15,320. The portion for a 9.31 part-time or limited-time person isthe lesser of 55.2equal to 9.32 68 percent of the salaryor the product of $15,320times the 9.33 ratio of the person's actual employment to full-time employment. 9.34 Sec. 12. Minnesota Statutes 1994, section 124.961, is 9.35 amended to read: 9.36 124.961 [DEBT SERVICE APPROPRIATION.] 10.1 (a) $17,000,000 in fiscal year 1994, $26,000,000 in fiscal 10.2 year 1995, and $31,600,000 in fiscal year 1996 and each year 10.3 thereafter is appropriated from the general fund to the 10.4 commissioner of education for payment of debt service 10.5 equalization aid under section 124.95.The 1994 appropriation10.6includes $3,000,000 for 1993 and $14,000,000 for 1994.For 10.7 fiscal years 1996 and later, the amount necessary for debt 10.8 service equalization aid under section 124.95, subdivision 5, is 10.9 appropriated from the equalization aid account of the general 10.10 fund under section 124D.01, subdivision 4. 10.11 (b) The appropriations in paragraph (a) must be reduced by 10.12 the amount of any money specifically appropriated for the same 10.13 purpose in any year from any state fund. 10.14 Sec. 13. Minnesota Statutes 1994, section 124A.02, is 10.15 amended by adding a subdivision to read: 10.16 Subd. 26. [EQUALIZATION AIDS ADJUSTED TAX CAPACITY.] 10.17 "Equalization aids adjusted tax capacity" means a district's net 10.18 tax capacity less the sum of the portion of net tax capacity 10.19 attributable to: 10.20 (1) the district's commercial-industrial property, 10.21 consisting of class 3a and 3b property as defined under section 10.22 273.13, subdivision 24; 10.23 (2) the district's class 5 property as defined under 10.24 section 273.13, subdivision 31; and 10.25 (3) the district's class 2a property as defined under 10.26 section 273.13, subdivision 23; all adjusted by the sales ratio 10.27 for that year according to section 124.2131. 10.28 Sec. 14. Minnesota Statutes 1994, section 124A.03, 10.29 subdivision 1c, is amended to read: 10.30 Subd. 1c. [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 10.31 subdivision 1b, a district's referendum allowance must not 10.32 exceed the greater of: 10.33 (1) the district's referendum allowance for fiscal year 10.34 1994; or 10.35 (2) 25 percent of the formula allowance for fiscal year 10.36 1995 and later. 11.1 A district is not subject to the referendum allowance 11.2 limitations of this subdivision if the full amount of the 11.3 district's referendum levy is spread according to subdivision 2a. 11.4 Sec. 15. Minnesota Statutes 1994, section 124A.03, 11.5 subdivision 1e, is amended to read: 11.6 Subd. 1e. [TOTAL REFERENDUM REVENUE.] The total referendum 11.7 revenue for each district equals the district's referendum 11.8 allowance times the actual pupil units for the school year plus 11.9 revenue authorized by the school board under subdivision 7. 11.10 Sec. 16. Minnesota Statutes 1994, section 124A.03, 11.11 subdivision 1f, is amended to read: 11.12 Subd. 1f. [REFERENDUM EQUALIZATION REVENUE.] For fiscal 11.13 years 1995, 1996, and 1997, a district's referendum equalization 11.14 revenue equals $315 times the district's actual pupil units for 11.15 that year. 11.16 Referendum equalization revenue must not exceed a 11.17 district's total referendum revenue for that year. For fiscal 11.18 years 1998 and later, referendum equalization revenue equals 11.19 total referendum revenue. Referendum revenue approved after 11.20 July 1, 1994, must be reserved and may be used only for the 11.21 purpose specified on the referendum ballot. 11.22 Sec. 17. Minnesota Statutes 1994, section 124A.03, 11.23 subdivision 1g, is amended to read: 11.24 Subd. 1g. [REFERENDUM EQUALIZATION LEVY.] A district's 11.25 referendum equalization levy equals the district's referendum 11.26 equalization revenue times the lesser of one or the ratio of the 11.27 district's equalization aids adjustednettax capacity per 11.28 actual pupil unit to 100 percent of the equalizing factor as 11.29 defined in section 124A.02, subdivision 8. 11.30 Sec. 18. Minnesota Statutes 1994, section 124A.03, 11.31 subdivision 2, is amended to read: 11.32 Subd. 2. [REFERENDUM REVENUE.] (a) The revenue authorized 11.33 by section 124A.22, subdivision 1, may be increased in the 11.34 amount approved by the voters of the district at a referendum 11.35 called for the purpose. The referendum may be called by the 11.36 school board or shall be called by the school board upon written 12.1 petition of qualified voters of the district. The referendum 12.2 shall be conducted during the calendar year before the increased 12.3 levy authority, if approved, first becomes payable. Only one 12.4 election to approve an increase may be held in a calendar year. 12.5 Unless the referendum is conducted by mail under paragraph (g), 12.6 the referendum must be held on the first Tuesday after the first 12.7 Monday in November. The ballot shall state the maximum amount 12.8 of the increased revenue per actual pupil unit, the estimated 12.9 referendum tax rate as a percentage ofmarket valueequalization 12.10 aids adjusted tax capacity in the first year it is to be levied, 12.11 and that the revenue shall be used to finance school 12.12 operations. The ballot shall also state the purpose for which 12.13 the referendum revenue is to be used. The ballot may state that 12.14 existing referendum levy authority is expiring. In this case, 12.15 the ballot may also compare the proposed levy authority to the 12.16 existing expiring levy authority, and express the proposed 12.17 increase as the amount, if any, over the expiring referendum 12.18 levy authority. The ballot shall designate the specific number 12.19 of years, not to exceed ten, for which the referendum 12.20 authorization shall apply. The ballot may contain a textual 12.21 portion with the information required in this subdivision and a 12.22 question stating substantially the following: 12.23 "Shall the increase in the revenue proposed by (petition 12.24 to) the board of ........., School District No. .., be approved?" 12.25 If approved, an amount equal to the approved revenue per 12.26 actual pupil unit times the actual pupil units for the school 12.27 year beginning in the year after the levy is certified shall be 12.28 authorized for certification for the number of years approved, 12.29 if applicable, or until revoked or reduced by the voters of the 12.30 district at a subsequent referendum. 12.31 (b) The school board shall prepare and deliver by first 12.32 class mail at least 15 days but no more than 30 days prior to 12.33 the day of the referendum to each taxpayer a notice of the 12.34 referendum and the proposed revenue increase. The school board 12.35 need not mail more than one notice to any taxpayer. For the 12.36 purpose of giving mailed notice under this subdivision, owners 13.1 shall be those shown to be owners on the records of the county 13.2 auditor or, in any county where tax statements are mailed by the 13.3 county treasurer, on the records of the county treasurer. Every 13.4 property owner whose name does not appear on the records of the 13.5 county auditor or the county treasurer shall be deemed to have 13.6 waived this mailed notice unless the owner has requested in 13.7 writing that the county auditor or county treasurer, as the case 13.8 may be, include the name on the records for this purpose. The 13.9 notice must project the anticipated amount of tax increase in 13.10 annual dollars and annual percentage for typical residential 13.11 homesteads, agricultural homesteads, and apartments, and13.12commercial-industrial propertywithin the school district. 13.13 The notice for a referendum may state that an existing 13.14 referendum levy is expiring and project the anticipated amount 13.15 of increase over the existing referendum levy, if any, in annual 13.16 dollars and annual percentage for typical residential 13.17 homesteads, agricultural homesteads, and apartments, and13.18commercial-industrial propertywithin the school district. 13.19 The notice must include the following statement: "Passage 13.20 of this referendum will result in an increase in your property 13.21 taxes." 13.22 (c) A referendum on the question of revoking or reducing 13.23 the increased revenue amount authorized pursuant to paragraph 13.24 (a) may be called by the school board and shall be called by the 13.25 school board upon the written petition of qualified voters of 13.26 the district. A referendum to revoke or reduce the levy amount 13.27 must be based upon the dollar amount, local tax rate, or amount 13.28 per actual pupil unit, that was stated to be the basis for the 13.29 initial authorization. Revenue approved by the voters of the 13.30 district pursuant to paragraph (a) must be received at least 13.31 once before it is subject to a referendum on its revocation or 13.32 reduction for subsequent years. Only one revocation or 13.33 reduction referendum may be held to revoke or reduce referendum 13.34 revenue for any specific year and for years thereafter. 13.35 (d) A petition authorized by paragraph (a) or (c) shall be 13.36 effective if signed by a number of qualified voters in excess of 14.1 15 percent of the registered voters of the school district on 14.2 the day the petition is filed with the school board. A 14.3 referendum invoked by petition shall be held on the date 14.4 specified in paragraph (a). 14.5 (e) The approval of 50 percent plus one of those voting on 14.6 the question is required to pass a referendum authorized by this 14.7 subdivision. 14.8 (f) At least 15 days prior to the day of the referendum, 14.9 the district shall submit a copy of the notice required under 14.10 paragraph (b) to the commissioner of education. Within 15 days 14.11 after the results of the referendum have been certified by the 14.12 school board, or in the case of a recount, the certification of 14.13 the results of the recount by the canvassing board, the district 14.14 shall notify the commissioner of education of the results of the 14.15 referendum. 14.16 (g) Any referendum under this section held on a day other 14.17 than the first Tuesday after the first Monday in November must 14.18 be conducted by mail in accordance with section 204B.46. 14.19 Notwithstanding paragraph (b) to the contrary, in the case of a 14.20 referendum conducted by mail under this paragraph, the notice 14.21 required by paragraph (b) shall be prepared and delivered by 14.22 first class mail at least 20 days before the referendum. 14.23 Sec. 19. Minnesota Statutes 1994, section 124A.03, 14.24 subdivision 2a, is amended to read: 14.25 Subd. 2a. [SCHOOL REFERENDUM LEVY;MARKET VALUE14.26 EQUALIZATION AIDS TAX CAPACITY.] Notwithstanding the provisions 14.27 of subdivision 2, a school referendum levy approved after 14.28 November 1,19921994, for taxes payable in19931995 and 14.29 thereafter, shall be levied against thereferendum market value14.30of all taxable property as defined in section 124A.02,14.31subdivision 3b. Any referendum levy amount subject to the14.32requirements of this subdivision shall be certified separately14.33to the county auditor under section 275.07.14.34All other provisions of subdivision 2 that do not conflict14.35with this subdivision shall apply to referendum levies under14.36this subdivisiondistrict's net tax capacity less the portion of 15.1 net tax capacity attributable to the district's 15.2 commercial-industrial property, consisting of class 3a and 3b 15.3 and property as defined under section 273.13, subdivision 24, 15.4 class 5 property as defined under section 273.13, subdivision 15.5 31, and class 2a property as defined under section 273.13, 15.6 subdivision 23. 15.7 Sec. 20. Minnesota Statutes 1994, section 124A.03, is 15.8 amended by adding a subdivision to read: 15.9 Subd. 2c. [EXPIRATION OF EXISTING REFERENDUM AUTHORITY.] 15.10 Any referendum authority approved under this section before 15.11 January 1, 1992, that does not expire before July 1, 1997, 15.12 expires July 1, 1997, and unless reauthorized, must not be 15.13 levied for taxes payable in 1998 or later years. 15.14 Sec. 21. Minnesota Statutes 1994, section 124A.03, is 15.15 amended by adding a subdivision to read: 15.16 Subd. 7. [DISCRETIONARY REVENUE.] (a) Annually a school 15.17 board may adopt a resolution, upon a vote of six of its seven 15.18 members, or five of six members if the board has six members to 15.19 increase the referendum revenue of a district up to $100 times 15.20 the number of pupil units in the district. The resolution must 15.21 be adopted no later than July 1 of the calendar year preceding 15.22 the year for which the revenue is attributable. The resolution 15.23 may only be at a meeting held specifically for that purpose. 15.24 The board shall notify the commissioner of education of the 15.25 resolution within ten days of passage. 15.26 (b) A referendum on the question of revoking or reducing 15.27 the increased revenue amount authorized under paragraph (a) may 15.28 be called by the school board and shall be called by the school 15.29 board upon the written petition of qualified voters of the 15.30 district. A referendum to revoke or reduce the levy amount must 15.31 be based upon the dollar amount, local tax rate, or amount per 15.32 actual pupil unit, that was stated to be the basis for the 15.33 initial authorization. Unless the referendum is conducted by 15.34 mail, the referendum must be held on the first Tuesday after the 15.35 first Monday in November. One revocation or reduction 15.36 referendum may be held to revoke or reduce referendum revenue 16.1 for any specific year and for years thereafter. 16.2 (c) A petition authorized under paragraph (b) shall be 16.3 effective if signed by a number of qualified voters in excess of 16.4 15 percent of the registered voters of the school district on 16.5 the day the petition is filed with the school board. A 16.6 referendum invoked by petition shall be held on the date 16.7 specified in paragraph (a). 16.8 (d) The approval of 50 percent plus one of those voting on 16.9 the question is required to pass a referendum authorized by this 16.10 subdivision. 16.11 Sec. 22. Minnesota Statutes 1994, section 124A.22, 16.12 subdivision 2, is amended to read: 16.13 Subd. 2. [BASIC REVENUE.] The basic revenue for each 16.14 district equals the formula allowance times the actual pupil 16.15 units for the school year.The formula allowance for fiscal16.16years 1993 and 1994 is $3,050.The formula allowance for fiscal 16.17 year 1995and subsequent fiscal yearsis $3,150. The formula 16.18 allowance for fiscal year 1996 is $3,245 and for fiscal year 16.19 1997 and thereafter $3,342. 16.20 Sec. 23. [124D.01] [DEFINITIONS.] 16.21 Subdivision 1. [APPLICABILITY.] For the purposes of this 16.22 chapter, the following terms have the meaning given them. 16.23 Subd. 2. [COMMERCIAL-INDUSTRIAL PROPERTY.] 16.24 "Commercial-industrial property" means the following categories 16.25 of property as defined in section 273.13: 16.26 (1) class 3a and 3b property as defined in section 273.13, 16.27 subdivision 24; and 16.28 (2) class 5 property as defined in section 273.13, 16.29 subdivision 31. 16.30 Subd. 3. [COMMISSIONER.] "Commissioner" means the 16.31 commissioner of revenue. 16.32 Subd. 4. [EQUALIZATION AID ACCOUNT.] "Equalization aid 16.33 account" means the account established in the general fund to 16.34 pay education equalization aids to school districts. All 16.35 revenue received from the education equalization 16.36 commercial-industrial property tax must be deposited in this 17.1 account. 17.2 For fiscal years 1995 and 1996, "equalization aid" means 17.3 debt service equalization aid. For fiscal years 1997 and later, 17.4 "equalization aid" means debt service equalization aid and 17.5 referendum equalization aid. 17.6 Sec. 24. [124D.02] [EDUCATION EQUALIZATION TAX.] 17.7 Subdivision 1. [EDUCATION EQUALIZATION TAX BASE.] The net 17.8 tax capacity of commercial-industrial property is the education 17.9 equalization tax base and is subject to the education 17.10 equalization tax rate as determined in subdivision 3. 17.11 Subd. 2. [EDUCATION EQUALIZATION LEVY.] On or before 17.12 October 1 of each year, the commissioner shall determine the 17.13 total amount of the education equalization tax base within the 17.14 state for the previous assessment year. The commissioner of 17.15 education shall calculate and report to the commissioner of 17.16 revenue the amount of revenue necessary to provide state aid to 17.17 fund the equalization aids specified in section 124D.01, 17.18 subdivision 4, for the following fiscal year. The commissioner 17.19 shall determine each county's equalized education equalization 17.20 tax base by dividing the education equalization tax base, 17.21 excluding public utility property, but including railroad 17.22 property, by its most recently available countywide aggregate 17.23 commercial-industrial sales ratio determined under section 17.24 124.2131, and then adding that product to each county's public 17.25 utility part of the education equalization tax base. Each 17.26 county's education equalization levy equals the statewide 17.27 education equalization levy determined in this subdivision 17.28 multiplied by the ratio of each county's equalized education 17.29 equalization tax base determined in this subdivision to the 17.30 total equalized education equalization tax base for all counties. 17.31 Subd. 3. [EDUCATION EQUALIZATION TAX RATE.] Before 17.32 December 2 of each year, the commissioner shall notify each 17.33 county auditor of the amount of education equalization tax to be 17.34 levied on commercial-industrial property located in the county 17.35 for taxes payable in the following year. The county auditor 17.36 shall compute the education equalization tax rate for the county 18.1 by dividing the county's education equalization levy, as 18.2 certified by the commissioner, by the total education 18.3 equalization tax base within the county determined under 18.4 subdivision 1. 18.5 Sec. 25. [124D.03] [PAYMENT.] 18.6 The amount of education equalization tax due on each parcel 18.7 of commercial-industrial property must be listed separately on 18.8 the property tax statement under section 276.04, subdivision 2. 18.9 Payment of the education equalization tax must be made at the 18.10 same time and in the same manner as all other property taxes 18.11 levied by all units of local government. The county treasurer 18.12 shall pay the amounts collected from the education equalization 18.13 tax to the state treasurer. Settlement between the county 18.14 treasurer and the state treasurer must be made at the same time 18.15 that distributions are made to local governmental units in 18.16 accordance with sections 276.09 to 276.111. The funds payable 18.17 to the state treasurer must be deposited in the equalization aid 18.18 account in the general fund, and must be used only to pay 18.19 education equalization aids to school districts. 18.20 Sec. 26. Minnesota Statutes 1994, section 125.1895, 18.21 subdivision 4, is amended to read: 18.22 Subd. 4. [REIMBURSEMENT.] For purposes of revenue under 18.23 sections124.321124.32 and 124.322, the department of education 18.24 shall only reimburse school districts for the services of those 18.25 interpreters/transliterators who satisfy the standards of 18.26 competency under this section. 18.27 Sec. 27. Minnesota Statutes 1994, section 275.065, 18.28 subdivision 3, is amended to read: 18.29 Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 18.30 county auditor shall prepare and the county treasurer shall 18.31 deliver after November 10 and on or before November 24 each 18.32 year, by first class mail to each taxpayer at the address listed 18.33 on the county's current year's assessment roll, a notice of 18.34 proposed property taxes and, in the case of a town, final 18.35 property taxes. 18.36 (b) The commissioner of revenue shall prescribe the form of 19.1 the notice. 19.2 (c) The notice must inform taxpayers that it contains the 19.3 amount of property taxes each taxing authority other than a town 19.4 proposes to collect for taxes payable the following year and, 19.5 for a town, the amount of its final levy. It must clearly state 19.6 that each taxing authority, including regional library districts 19.7 established under section 134.201, and including the 19.8 metropolitan taxing districts as defined in paragraph (i), but 19.9 excluding all other special taxing districts and towns, will 19.10 hold a public meeting to receive public testimony on the 19.11 proposed budget and proposed or final property tax levy, or, in 19.12 case of a school district, on the current budget and proposed 19.13 property tax levy. It must clearly state the time and place of 19.14 each taxing authority's meeting and an address where comments 19.15 will be received by mail. The notice must include the estimated 19.16 percentage increase in Minnesota personal income, provided by 19.17 the commissioner of revenue under section 275.064, in a way to 19.18 facilitate comparison of the proposed budget and levy increases 19.19 with the increase in personal income. For school districts, the 19.20 notice shall include the percentage of the operating budget that 19.21 is used for administration and the same figure for school 19.22 districts in the same school district size decile based on 19.23 pupils in the district. The commissioner of education shall 19.24 provide this information to the county auditors based on the 19.25 most recent data available. For 1993, the notice must clearly 19.26 state that each taxing authority holding a public meeting will 19.27 describe the increases or decreases of the total budget, 19.28 including employee and independent contractor compensation in 19.29 the prior year, current year, and the proposed budget year. 19.30 (d) The notice must state for each parcel: 19.31 (1) the market value of the property as determined under 19.32 section 273.11, and used for computing property taxes payable in 19.33 the following year and for taxes payable in the current year; 19.34 and, in the case of residential property, whether the property 19.35 is classified as homestead or nonhomestead. The notice must 19.36 clearly inform taxpayers of the years to which the market values 20.1 apply and that the values are final values; 20.2 (2) by county, city or town, school district excess 20.3 referenda levy, remaining school district levy, regional library 20.4 district, if in existence, the total of the metropolitan special 20.5 taxing districts as defined in paragraph (i) and the sum of the 20.6 remaining special taxing districts, and as a total of the taxing 20.7 authorities, including all special taxing districts, the 20.8 proposed or, for a town, final net tax on the property for taxes 20.9 payable the following year and the actual tax for taxes payable 20.10 the current year. For the purposes of this subdivision, "school 20.11 district excess referenda levy" means school district taxes for 20.12 operating purposes approved at referendums, including those 20.13 taxes based on net tax capacity as well as those based on market 20.14 value. "School district excess referenda levy" does not include 20.15 school district taxes for capital expenditures approved at 20.16 referendums or school district taxes to pay for the debt service 20.17 on bonds approved at referenda. In the case of the city of 20.18 Minneapolis, the levy for the Minneapolis library board and the 20.19 levy for Minneapolis park and recreation shall be listed 20.20 separately from the remaining amount of the city's levy. In the 20.21 case of a parcel where tax increment or the fiscal disparities 20.22 areawide tax applies, the proposed tax levy on the captured 20.23 value or the proposed tax levy on the tax capacity subject to 20.24 the areawide tax must each be stated separately and not included 20.25 in the sum of the special taxing districts; and 20.26 (3) the increase or decrease in the amounts in clause (2) 20.27 from taxes payable in the current year to proposed or, for a 20.28 town, final taxes payable the following year, expressed as a 20.29 dollar amount and as a percentage. 20.30 (e) The notice must clearly state that the proposed or 20.31 final taxes do not include the following: 20.32 (1) special assessments; 20.33 (2) levies approved by the voters after the date the 20.34 proposed taxes are certified, including bond referenda, school 20.35 district levy referenda, and levy limit increase referenda; 20.36 (3) amounts necessary to pay cleanup or other costs due to 21.1 a natural disaster occurring after the date the proposed taxes 21.2 are certified; 21.3 (4) amounts necessary to pay tort judgments against the 21.4 taxing authority that become final after the date the proposed 21.5 taxes are certified; and 21.6 (5) the contamination tax imposed on properties which 21.7 received market value reductions for contamination. 21.8 (f) Except as provided in subdivision 7, failure of the 21.9 county auditor to prepare or the county treasurer to deliver the 21.10 notice as required in this section does not invalidate the 21.11 proposed or final tax levy or the taxes payable pursuant to the 21.12 tax levy. 21.13 (g) If the notice the taxpayer receives under this section 21.14 lists the property as nonhomestead and the homeowner provides 21.15 satisfactory documentation to the county assessor that the 21.16 property is owned and has been used as the owner's homestead 21.17 prior to June 1 of that year, the assessor shall reclassify the 21.18 property to homestead for taxes payable in the following year. 21.19 (h) In the case of class 4 residential property used as a 21.20 residence for lease or rental periods of 30 days or more, the 21.21 taxpayer must either: 21.22 (1) mail or deliver a copy of the notice of proposed 21.23 property taxes to each tenant, renter, or lessee; or 21.24 (2) post a copy of the notice in a conspicuous place on the 21.25 premises of the property. 21.26 (i) For purposes of this subdivision, subdivisions 5a and 21.27 6, "metropolitan special taxing districts" means the following 21.28 taxing districts in the seven-county metropolitan area that levy 21.29 a property tax for any of the specified purposes listed below: 21.30 (1) metropolitan council under section 473.132, 473.167, 21.31 473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 21.32 (2) metropolitan airports commission under section 473.667, 21.33 473.671, or 473.672; and 21.34 (3) metropolitan mosquito control commission under section 21.35 473.711. 21.36 For purposes of this section, any levies made by the 22.1 regional rail authorities in the county of Anoka, Carver, 22.2 Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 22.3 398A shall be included with the appropriate county's levy and 22.4 shall be discussed at that county's public hearing. 22.5 The notice must be mailed or posted by the taxpayer by 22.6 November 27 or within three days of receipt of the notice, 22.7 whichever is later. A taxpayer may notify the county treasurer 22.8 of the address of the taxpayer, agent, caretaker, or manager of 22.9 the premises to which the notice must be mailed in order to 22.10 fulfill the requirements of this paragraph. 22.11 Sec. 28. [APPROPRIATIONS.] 22.12 Subdivision 1. [DEPARTMENT OF EDUCATION.] The following 22.13 amounts are appropriated from the general fund to the department 22.14 of education for the fiscal years indicated. 22.15 Subd. 2. [SPECIAL EDUCATION AID.] For special education 22.16 aid: 22.17 $.,...,... ..... 1996 22.18 $.,...,... ..... 1997 22.19 Subd. 3. [SCHOOL DISTRICT COOPERATION REVENUE.] For school 22.20 district cooperation revenue: 22.21 $.,...,... ..... 1996 22.22 $.,...,... ..... 1997 22.23 Sec. 29. [REPEALER.] 22.24 Minnesota Statutes 1994, sections 124.321; and 124.322, 22.25 subdivision 4, are repealed. 22.26 Sec. 30. [EFFECTIVE DATE.] 22.27 Sections 1 to 29 are effective for revenue for the 22.28 1996-1997 and later school years.