HF 2317

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; prohibiting property tax 
  1.3             increases for taxes payable in 2000; imposing limits 
  1.4             on property tax increases for later years; requiring a 
  1.5             study; appropriating money; amending Minnesota 
  1.6             Statutes 1998, sections 254B.02, subdivision 3; 
  1.7             279.09; 279.10; 281.23, subdivision 3; and 375.169. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 254B.02, 
  1.10  subdivision 3, is amended to read: 
  1.11     Subd. 3.  [RESERVE ACCOUNT.] The commissioner shall 
  1.12  allocate money from the reserve account to counties that, during 
  1.13  the current fiscal year, have met or exceeded the base level of 
  1.14  expenditures for eligible chemical dependency services from 
  1.15  local money.  The commissioner shall establish the base level 
  1.16  for fiscal year 1988 as the amount of local money used for 
  1.17  eligible services in calendar year 1986.  In later years, the 
  1.18  base level must be increased in the same proportion as state 
  1.19  appropriations to implement Laws 1986, chapter 394, sections 8 
  1.20  to 20, are increased.  The base level must be decreased if the 
  1.21  fund balance from which allocations are made under section 
  1.22  254B.02, subdivision 1, is decreased in later years.  The base 
  1.23  level of expenditures for each county is defined as 15 percent 
  1.24  of the funds allocated to the county under subdivisions 1 and 
  1.25  2.  The local match rate for the reserve account is the same 
  1.26  rate as applied to the initial allocation.  Reserve account 
  2.1   payments must not be included when calculating the county 
  2.2   adjustments made according to subdivision 2.  For counties 
  2.3   providing medical assistance or general assistance medical care 
  2.4   through managed care plans on January 1, 1996, the base year is 
  2.5   fiscal year 1995.  For counties beginning provision of managed 
  2.6   care after January 1, 1996, the base year is the most recent 
  2.7   fiscal year before enrollment in managed care begins.  For 
  2.8   counties providing managed care, the base level will be 
  2.9   increased or decreased in proportion to changes in the fund 
  2.10  balance from which allocations are made under subdivision 2, but 
  2.11  will be additionally increased or decreased in proportion to the 
  2.12  change in county adjusted population made in subdivision 1, 
  2.13  paragraphs (b) and (c). 
  2.14     Sec. 2.  Minnesota Statutes 1998, section 279.09, is 
  2.15  amended to read: 
  2.16     279.09 [PUBLICATION OF NOTICE AND LIST.] 
  2.17     The county auditor shall cause the notice and list of 
  2.18  delinquent real property to be published once in each of two 
  2.19  consecutive weeks in the newspaper designated, the first 
  2.20  publication of which shall be made on or before March 20 
  2.21  immediately following the filing of such list with the court 
  2.22  administrator of the district court.  The auditor shall deliver 
  2.23  such list to the publisher of the newspaper designated, at least 
  2.24  20 days before the date upon which the list shall be published 
  2.25  for the first time.  
  2.26     Sec. 3.  Minnesota Statutes 1998, section 279.10, is 
  2.27  amended to read: 
  2.28     279.10 [PUBLICATION CORRECTED.] 
  2.29     Immediately after preparing forms for printing such notice 
  2.30  and list, and at least five days before the first day for the 
  2.31  publication thereof, every such publisher shall furnish proof of 
  2.32  the proposed publication to the county auditor for correction.  
  2.33  When such copy has been corrected, the auditor shall return the 
  2.34  same to the printer, who shall publish it as corrected.  On the 
  2.35  first day on which such notice and list are published, the 
  2.36  publisher shall mail a copy of the newspaper containing the same 
  3.1   to the auditor.  If during the publication of the notice and 
  3.2   list, or within ten days after the last publication thereof, the 
  3.3   auditor shall discover that such publication is invalid, the 
  3.4   auditor shall forthwith direct the publisher to republish the 
  3.5   same as corrected for an additional period of two weeks.  The 
  3.6   publisher, if not neglectful, shall be entitled to the same 
  3.7   compensation as allowed by law for the original publication, but 
  3.8   shall receive no further compensation therefor if such 
  3.9   republication is necessary by reason of the neglect of the 
  3.10  publisher. 
  3.11     Sec. 4.  Minnesota Statutes 1998, section 281.23, 
  3.12  subdivision 3, is amended to read: 
  3.13     Subd. 3.  [PUBLICATION.] As soon as practicable after the 
  3.14  posting of the notice prescribed in subdivision 2, the county 
  3.15  auditor shall cause to be published for two successive weeks in 
  3.16  the official newspaper of the county, the notice prescribed by 
  3.17  subdivision 2.  
  3.18     Sec. 5.  Minnesota Statutes 1998, section 375.169, is 
  3.19  amended to read: 
  3.20     375.169 [PUBLICATION OF SUMMARY BUDGET STATEMENT.] 
  3.21     Annually, upon adoption of the county budget, the county 
  3.22  board shall cause a summary budget statement to be published 
  3.23  in one of the following: 
  3.24     (1) the official newspaper of the county, or if there is 
  3.25  none, in a qualified newspaper of general circulation in the 
  3.26  county.; or 
  3.27     (2) for a county in the metropolitan area as defined in 
  3.28  section 473.121, subdivision 2, a county newsletter or other 
  3.29  county mailing sent to all households in the city, or as an 
  3.30  insert with the truth-in-taxation notice under section 275.065. 
  3.31     If the summary budget statement is published in a county 
  3.32  newsletter, it must be the lead story.  If the summary budget 
  3.33  statement is published through a county newsletter or other 
  3.34  county mailing, a copy of the newsletter or mailing shall be 
  3.35  sent on request to any nonresident.  If the summary budget 
  3.36  statement is published by a mailing to households other than a 
  4.1   newsletter, the color of the paper on which the summary budget 
  4.2   statement is printed must be distinctively different than the 
  4.3   paper containing other printed material included in the 
  4.4   mailing.  The statement shall contain information relating to 
  4.5   anticipated revenues and expenditures in a form prescribed by 
  4.6   the state auditor.  The form prescribed shall be designed so 
  4.7   that comparisons can be made between the current year and the 
  4.8   budget year.  A note shall be included that the complete budget 
  4.9   is available for public inspection at a designated location 
  4.10  within the county.  
  4.11     Sec. 6.  [EDUCATION FINANCE FOR THE 2000-2001 SCHOOL YEAR.] 
  4.12     Subdivision 1.  [ADJUSTED TAX CAPACITY FOR SCHOOL YEAR 
  4.13  2000-2001.] Notwithstanding any other law to the contrary, for 
  4.14  purposes of any levy authorized under Minnesota Statutes, 
  4.15  chapter 126C or 136D, the adjusted net tax capacity of a school 
  4.16  district, education district, or intermediate school district 
  4.17  under Minnesota Statutes, section 127A.48, for the 2000-2001 
  4.18  school year shall equal the adjusted net tax capacity used for 
  4.19  computation of its levy limits for the 1999-2000 school year. 
  4.20     Subd. 2.  [LOCAL EFFORT TAX RATE AND EQUALIZING FACTOR.] 
  4.21  Notwithstanding any other law to the contrary, the local effort 
  4.22  tax rates computed under Minnesota Statutes, section 126C.13, 
  4.23  for the 2000-2001 school year shall equal the local effort tax 
  4.24  rates established at the time of levy limit certification for 
  4.25  the 1999-2000 school year.  Notwithstanding any other law to the 
  4.26  contrary, the equalizing factor under Minnesota Statutes, 
  4.27  section 126C.01, for the 2000-2001 school year shall equal the 
  4.28  equalizing factor for the 1999-2000 school year. 
  4.29     Subd. 3.  [COMPUTATION OF PUPIL UNITS FOR LEVY LIMITS.] 
  4.30  Notwithstanding Minnesota Statutes, section 126C.05, or any 
  4.31  other law to the contrary, the number of pupil units and AFDC 
  4.32  pupil units for a school district, education district, or 
  4.33  intermediate school district for use in computing the levy 
  4.34  limits of the district or technical college for the 2000-2001 
  4.35  school year shall be the pupil units and AFDC pupil units used 
  4.36  for the levy limit computation of the school district, education 
  5.1   district, intermediate school district, or technical college for 
  5.2   the 1999-2000 school year.  For purposes of computing the 
  5.3   revenue entitlement of a school district under Minnesota 
  5.4   Statutes, chapter 126C or 136D, for the 2000-2001 school year, 
  5.5   the pupil units or AFDC pupil units shall be as otherwise 
  5.6   provided under Minnesota Statutes, section 126C.05.  If any 
  5.7   section of Minnesota Statutes, chapter 126C, provides that an 
  5.8   aid entitlement is equal to the difference between the revenue 
  5.9   entitlement and the authorized levy, then the aid entitlement 
  5.10  for the 2000-2001 school year shall equal the difference between 
  5.11  the revenue entitlement and authorized levies computed under 
  5.12  this section and sections 7 to 45.  If any section of Minnesota 
  5.13  Statutes, chapter 126C, provides that the aid entitlement will 
  5.14  be reduced if a district fails to exercise its full levy 
  5.15  authority and the district failed to levy its full authority for 
  5.16  the 1999-2000 school year, the commissioner shall assume that, 
  5.17  absent the provisions of this act, the district would have 
  5.18  elected to exercise the same portion of its levy authority for 
  5.19  the 2000-2001 school year as it did in the prior year and 
  5.20  determine the district's aid under the applicable section and 
  5.21  the prior sentence. 
  5.22     Sec. 7.  [TRANSITIONAL LEVIES.] 
  5.23     Notwithstanding Minnesota Statutes, sections 123A.41, 
  5.24  subdivision 4, and 123A.76, a school district's levy under those 
  5.25  sections for taxes payable in 2000 shall be no greater than it 
  5.26  was for the prior year. 
  5.27     Sec. 8.  [BONDS.] 
  5.28     (a) Notwithstanding Minnesota Statutes, section 123B.59, 
  5.29  after July 31, 1999, no school district can sell bonds under 
  5.30  that section the debt service payments of which would require a 
  5.31  levy first becoming payable in 2000 or authorize a levy under 
  5.32  Minnesota Statutes, section 123B.59, subdivision 5, clause (b), 
  5.33  that is not pursuant to a plan adopted prior to August 1, 1999.  
  5.34  This restriction shall not apply to (1) refunding bonds sold to 
  5.35  refund bonds originally sold before August 1, 1999, or (2) bonds 
  5.36  for which the amount of the levy first becoming due in 2000 
  6.1   would not exceed the amount by which the school district's total 
  6.2   levy for debt service on bonds for taxes payable in 2000 prior 
  6.3   to issuance of those bonds is less than the municipality's total 
  6.4   levy for debt service for bonds for taxes payable in 1999. 
  6.5      (b) For purposes of this section, bonds will be deemed to 
  6.6   have been sold before August 1, 1999, if: 
  6.7      (1) an agreement has been entered into between the school 
  6.8   district and a purchaser or underwriter for the sale of the 
  6.9   bonds by that date; 
  6.10     (2) the issuing school district is a party to a contract or 
  6.11  letter of understanding entered into before August 1, 1999, with 
  6.12  the federal government that requires the school district to pay 
  6.13  for a project, and the project will be funded with the proceeds 
  6.14  of the bonds; or 
  6.15     (3) the proceeds of the bonds will be used to fund a 
  6.16  project or acquisition with respect to which the school district 
  6.17  has entered into a contract with a builder or supplier before 
  6.18  August 1.  Debt service payments due on bonds described in this 
  6.19  paragraph during calendar year 2000 will be paid by the state.  
  6.20  The amount of those payments must be repaid by the school 
  6.21  district to the state in three equal annual installments 
  6.22  beginning in 2001.  No interest will be due on those payments if 
  6.23  timely paid by June 15 of the year due. 
  6.24     Sec. 9.  [LEVY FOR ADULT BASIC EDUCATION AID.] 
  6.25     Notwithstanding Minnesota Statutes, section 124D.53, school 
  6.26  districts which did not levy for adult basic education for taxes 
  6.27  payable in 1999 may not levy for that purpose for taxes payable 
  6.28  in 2000. 
  6.29     Sec. 10.  [EARLY CHILDHOOD FAMILY EDUCATION AND HOME 
  6.30  VISITING LEVY.] 
  6.31     Notwithstanding Minnesota Statutes, section 124D.135, 
  6.32  subdivisions 3 and 6, a school district's levy for early 
  6.33  childhood family education and home visiting under Minnesota 
  6.34  Statutes, section 124D.135, subdivision 6, for school year 
  6.35  2000-2001 shall be no greater than it was for the prior year. 
  6.36     Sec. 11.  [COMMUNITY EDUCATION LEVY.] 
  7.1      Notwithstanding Minnesota Statutes, section 124D.20, 
  7.2   subdivisions 5 and 6, the community education levy of a school 
  7.3   district for the 2000-2001 school year shall be no greater than 
  7.4   it was for the prior year. 
  7.5      Sec. 12.  [LEVY FOR ADDITIONAL COMMUNITY EDUCATION 
  7.6   REVENUE.] 
  7.7      Notwithstanding Minnesota Statutes, section 124D.21, a 
  7.8   school district's levy under that section for school year 
  7.9   2000-2001 shall be no greater than it was for the prior year. 
  7.10     Sec. 13.  [PROGRAMS FOR ADULTS WITH DISABILITIES; LEVY.] 
  7.11     Notwithstanding Minnesota Statutes, section 124D.56, 
  7.12  subdivision 3, a school district's levy for community education 
  7.13  programs for adults with disabilities for the 2000-2001 school 
  7.14  year shall be no greater than it was for the prior year. 
  7.15     Sec. 14.  [EXTENDED DAY LEVY.] 
  7.16     Notwithstanding Minnesota Statutes, section 124D.22, a 
  7.17  school district's levy under that section for the 2000-2001 
  7.18  school year shall be no greater than it was for the prior year. 
  7.19     Sec. 15.  [EARLY RETIREMENT AND SEVERANCE LEVY.] 
  7.20     Notwithstanding Minnesota Statutes, section 123A.39, 
  7.21  subdivision 3, a school district's levy for the 2000-2001 school 
  7.22  year for severance pay or early retirement incentives for 
  7.23  licensed and nonlicensed staff who retire early as the result of 
  7.24  combination or cooperation shall be no greater than it was for 
  7.25  the prior year. 
  7.26     Sec. 16.  [CONSOLIDATION; RETIREMENT LEVY.] 
  7.27     Notwithstanding Minnesota Statutes, section 123A.485, 
  7.28  subdivision 3, a school district's levy for retirement 
  7.29  incentives under Minnesota Statutes, section 123A.48, 
  7.30  subdivision 23, for the 2000-2001 school year shall be no 
  7.31  greater than it was for the prior year. 
  7.32     Sec. 17.  [DISTRICT COOPERATION LEVY.] 
  7.33     Notwithstanding Minnesota Statutes, section 126C.22, 
  7.34  subdivisions 2 and 5, a school district's levy for district 
  7.35  cooperation for the 2000-2001 school year shall be no greater 
  7.36  than it was for the prior year. 
  8.1      Sec. 18.  [SPECIAL EDUCATION EQUALIZATION LEVY.] 
  8.2      Notwithstanding Minnesota Statutes, section 125A.77, 
  8.3   subdivisions 3 and 5, a school district's special education 
  8.4   equalization levy for the 2000-2001 school year shall be no 
  8.5   greater than it was for the prior year.  If the resulting levy 
  8.6   is less than the school district would have levied under 
  8.7   Minnesota Statutes, section 125A.77, subdivisions 3 and 5, the 
  8.8   district shall receive additional aid equal to the difference. 
  8.9      Sec. 19.  [JOINT POWERS BOARD; EARLY RETIREMENT AND 
  8.10  SEVERANCE LEVY.] 
  8.11     Notwithstanding Minnesota Statutes, section 123A.444, a 
  8.12  school district's levy for the 2000-2001 school year for 
  8.13  severance pay and early retirement incentives to a teacher as 
  8.14  defined in Minnesota Statutes, section 122A.40, subdivision 1, 
  8.15  who is placed on unrequested leave as the result of a 
  8.16  cooperative secondary facility agreement shall be no greater 
  8.17  than it was for the prior year. 
  8.18     Sec. 20.  [FACILITIES DOWN PAYMENT LEVY REFERENDUM.] 
  8.19     Notwithstanding Minnesota Statutes, section 123B.63, 
  8.20  subdivision 3, no facilities down payment levy referendum held 
  8.21  after August 1, 1999, may authorize a levy first becoming 
  8.22  payable in 2000. 
  8.23     Sec. 21.  [HEALTH AND SAFETY LEVY.] 
  8.24     Notwithstanding Minnesota Statutes, section 123B.57, 
  8.25  subdivisions 4 and 7, a school district's levy for a health and 
  8.26  safety program under Minnesota Statutes, section 123B.57, for 
  8.27  the 2000-2001 school year shall be no greater than it was for 
  8.28  the prior year.  If the resulting levy is less than the school 
  8.29  district would have levied under Minnesota Statutes, section 
  8.30  123B.57, subdivisions 4 and 7, the district shall receive 
  8.31  additional aid equal to the difference. 
  8.32     Sec. 22.  [HANDICAPPED ACCESS AND FIRE SAFETY LEVY.] 
  8.33     Notwithstanding Minnesota Statutes, section 123B.58, 
  8.34  subdivisions 3 and 4, a school district's levy for purposes of 
  8.35  Minnesota Statutes, section 123B.58, subdivisions 1 and 2, for 
  8.36  the 2000-2001 school year shall be no greater than it was for 
  9.1   the prior year.  If the resulting levy is less than the school 
  9.2   district would have levied under Minnesota Statutes, section 
  9.3   123B.58, subdivision 3, the district may levy the difference in 
  9.4   the subsequent year notwithstanding the eight year limitation in 
  9.5   Minnesota Statutes, section 123B.58, subdivision 3. 
  9.6      Sec. 23.  [LEVY TO RENT OR LEASE BUILDING OR LAND.] 
  9.7      Notwithstanding Minnesota Statutes, section 126C.40, 
  9.8   subdivision 1, after August 1, 1999, the commissioner of 
  9.9   education shall not authorize any school district to make any 
  9.10  additional capital expenditure levy to rent or lease a building 
  9.11  or land for instructional purposes if the levy for that purpose 
  9.12  first becomes due and payable in 2000 unless the district's 
  9.13  capital expenditure levy for taxes payable in 2000, including 
  9.14  the levy for the new obligation, would not exceed its levy for 
  9.15  that purpose for taxes payable in 1999. 
  9.16     Sec. 24.  [LEVY FOR LEASE PURCHASE OR INSTALLMENT BUYS.] 
  9.17     (a) Except as provided in paragraph (b), after July 31, 
  9.18  1999, no school district may enter into an installment contract 
  9.19  or a lease purchase agreement the levy for which would first 
  9.20  become payable in 2000 unless the district's total levy for 
  9.21  installment contracts and lease purchase agreements for taxes 
  9.22  payable in 2000, including the levy for the new obligation, 
  9.23  would not exceed its levy for that purpose for taxes payable in 
  9.24  1999. 
  9.25     (b) For purposes of this section, installment contracts or 
  9.26  lease purchase agreements will be deemed to have been entered 
  9.27  into before August 1, 1999, if: 
  9.28     (1) an agreement has been entered into between the school 
  9.29  district and a lessor or seller by that date; 
  9.30     (2) the school district is a party to contract or letter of 
  9.31  understanding entered into before August 1, 1999, with the 
  9.32  federal government that requires the school district to pay for 
  9.33  a project, and the project will be funded with the proceeds of 
  9.34  the installment contracts or lease purchase agreements; or 
  9.35     (3) the installment contracts or lease purchase agreements 
  9.36  will be used to fund a project or acquisition with respect to 
 10.1   which the school district has entered into a contract with a 
 10.2   builder or supplier before August 1, 1999.  Payments due on 
 10.3   installment contracts or lease purchase agreements described in 
 10.4   this paragraph during calendar year 2000 will be paid by the 
 10.5   state.  The amount of those payments must be repaid by the 
 10.6   school district to the state in three equal annual installments 
 10.7   beginning in 2001.  No interest will be due on those payments if 
 10.8   timely paid by June 15 of the year due. 
 10.9      Sec. 25.  [COOPERATING DISTRICTS; CAPITAL LEVY.] 
 10.10     Notwithstanding Minnesota Statutes, section 126C.40, 
 10.11  subdivision 3, a school district's levy under that subdivision 
 10.12  for the 1999-2000 school year shall be no greater than it was 
 10.13  for the prior year. 
 10.14     Sec. 26.  [LEVY FOR INTERACTIVE TELEVISION.] 
 10.15     Notwithstanding Minnesota Statutes, section 126C.40, 
 10.16  subdivision 4, a school district's levy for interactive 
 10.17  television for the 2000-2001 school year shall be no greater 
 10.18  than it was for the prior year. 
 10.19     Sec. 27.  [ENERGY CONSERVATION LEVY.] 
 10.20     Notwithstanding Minnesota Statutes, section 126C.40, 
 10.21  subdivision 5, a school district may not enter into a loan under 
 10.22  Minnesota Statutes, section 216C.37, or sections 298.292 to 
 10.23  298.298, after July 31, 1999, if the levy for repayment of the 
 10.24  loan would first become payable in 2000. 
 10.25     Sec. 28.  [LEVY FOR STATUTORY OBLIGATIONS.] 
 10.26     Notwithstanding Minnesota Statutes, section 126C.43, 
 10.27  subdivision 1, a school district's levy as otherwise authorized 
 10.28  under that subdivision for the 2000-2001 school year shall be no 
 10.29  greater than it was for the prior year.  To the extent that the 
 10.30  portion of the resulting levy for the school district's 
 10.31  obligation under Minnesota Statutes, sections 268.052, 
 10.32  subdivision 1, 268.085, and 268.087, is less than the school 
 10.33  district would have been otherwise authorized to levy under 
 10.34  Minnesota Statutes, section 126C.43, subdivision 1, the school 
 10.35  district shall receive additional aid equal to the difference.  
 10.36  To the extent that the portion of the resulting levy for 
 11.1   judgments under Minnesota Statutes, section 126C.47, is less 
 11.2   than the school district would have been authorized to levy 
 11.3   under Minnesota Statutes, section 126C.43, subdivision 1, for 
 11.4   this purpose, the school district may levy the difference in the 
 11.5   subsequent year. 
 11.6      Sec. 29.  [LEVY FOR CRIME-RELATED COSTS.] 
 11.7      Notwithstanding Minnesota Statutes, section 126C.44, a 
 11.8   school district's levy as otherwise authorized under that 
 11.9   section for the 2000-2001 school year shall be no greater than 
 11.10  it was for the prior year. 
 11.11     Sec. 30.  [ICE ARENA LEVY.] 
 11.12     Notwithstanding Minnesota Statutes, section 126C.45, a 
 11.13  school district's levy as otherwise authorized under that 
 11.14  section for the 2000-2001 school year shall be no greater than 
 11.15  it was for the prior year. 
 11.16     Sec. 31.  [ABATEMENT LEVY.] 
 11.17     Notwithstanding Minnesota Statutes, section 126C.46, a 
 11.18  school district's levy as otherwise authorized under that 
 11.19  section for the 2000-2001 school year shall be no greater than 
 11.20  it was for the prior year.  To the extent the portion of the 
 11.21  resulting levy otherwise authorized under Minnesota Statutes, 
 11.22  section 126C.46, is less than the school district would have 
 11.23  been authorized to levy under that section, the district shall 
 11.24  receive additional aid equal to the difference.  The remaining 
 11.25  portion of the resulting levy that is less than the school 
 11.26  district would have been authorized to levy under the remainder 
 11.27  of Minnesota Statutes, section 126C.46, may be levied over a 
 11.28  four-year period notwithstanding the three-year limitation of 
 11.29  Minnesota Statutes, section 126C.46, paragraph (b). 
 11.30     Sec. 32.  [OPERATING DEBT LEVIES.] 
 11.31     Notwithstanding Minnesota Statutes, section 123A.73, 
 11.32  subdivision 9; 126C.42; or Laws 1992, chapter 499, article 7, 
 11.33  sections 13 and 14, a school district's levy as otherwise 
 11.34  authorized under those provisions of law for the 2000-2001 
 11.35  school year shall be no greater than it was for the prior year.  
 11.36  To the extent this prevents a district from amortizing its 
 12.1   reorganization operating debt as defined in Minnesota Statutes, 
 12.2   section 123B.82, in five years, the district shall be permitted 
 12.3   to levy the remainder in a subsequent year. 
 12.4      Sec. 33.  [HEALTH INSURANCE BENEFITS LEVY.] 
 12.5      Notwithstanding Minnesota Statutes, section 126C.41, 
 12.6   subdivision 1, or Laws 1993, chapter 224, article 8, section 18, 
 12.7   a school district's levy for retired employees' health insurance 
 12.8   as otherwise authorized under those provisions of law for the 
 12.9   taxes payable in 2000 shall be no greater than it was for the 
 12.10  prior year. 
 12.11     Sec. 34.  [RETIREMENT LEVY.] 
 12.12     Notwithstanding Minnesota Statutes, section 126C.41, 
 12.13  subdivision 3, a school district's levy as otherwise authorized 
 12.14  under that subdivision for taxes payable in 2000 shall be no 
 12.15  greater than it was for the prior year.  If the resulting levy 
 12.16  is less than the school district would have been authorized to 
 12.17  levy under that subdivision, the school district shall receive 
 12.18  additional aid equal to the difference. 
 12.19     Sec. 35.  [MINNEAPOLIS HEALTH INSURANCE SUBSIDY.] 
 12.20     Notwithstanding Minnesota Statutes, section 126C.41, 
 12.21  subdivision 4, the levy of special school district No. 1, 
 12.22  Minneapolis, as otherwise authorized under that section for the 
 12.23  2000-2001 school year shall be no greater than it was for the 
 12.24  prior year. 
 12.25     Sec. 36.  [LEVY FOR TACONITE PAYMENT.] 
 12.26     Notwithstanding Minnesota Statutes, section 126C.48, 
 12.27  subdivision 8, a school district's levy reduction as otherwise 
 12.28  authorized under that subdivision for the 2000-2001 school year 
 12.29  shall be no less than it was for the prior year.  General 
 12.30  education aid reduction for the 2000-2001 school year shall be 
 12.31  governed by Minnesota Statutes, section 126C.21, subdivision 4, 
 12.32  and the levy reduction as required by this section. 
 12.33     Sec. 37.  [EQUALIZED DEBT SERVICE LEVY.] 
 12.34     Notwithstanding Minnesota Statutes, section 123B.53, 
 12.35  subdivision 5, a school district's levy as otherwise authorized 
 12.36  under that subdivision, except for any increase authorized by a 
 13.1   referendum under Minnesota Statutes, section 126C.17, 
 13.2   subdivision 9, after August 1, 1999, for the 2000-2001 school 
 13.3   year taxes payable in 2000 shall be based on the actual pupil 
 13.4   units in the district for the 1995-1996 school year and the 1996 
 13.5   adjusted net tax of the district. 
 13.6      Sec. 38.  [UNEQUALIZED REFERENDUM LEVY.] 
 13.7      Notwithstanding Minnesota Statutes, section 126C.17, 
 13.8   subdivision 8, a school district's unequalized referendum levy 
 13.9   for the 2000-2001 school year, except for any increase 
 13.10  authorized by a referendum under Minnesota Statutes, section 
 13.11  126C.17, subdivision 9, after August 1, 1999, shall be no 
 13.12  greater than it was for the prior year.  If the resulting levy 
 13.13  is less than the school district would have levied under that 
 13.14  subdivision, the school district shall receive additional aid 
 13.15  equal to the difference. 
 13.16     Sec. 39.  [REFERENDUM TO CONTINUE AN EXPIRING REFERENDUM 
 13.17  BASED ON NET TAX CAPACITY.] 
 13.18     Notwithstanding Minnesota Statutes, section 126C.17, 
 13.19  subdivisions 9 and 10, if a referendum enacted after August 1, 
 13.20  1999, provides for continuation of a referendum levy that 
 13.21  terminates beginning with taxes payable in 2000, and the 
 13.22  terminated levy had been based on net tax capacity, the 
 13.23  referendum relating to taxes payable in 2000 must be based on 
 13.24  net tax capacity and the ballot shall state the estimated 
 13.25  referendum tax rate based on net tax capacity for taxes levied 
 13.26  in 1999.  To the extent the referendum relates to taxes payable 
 13.27  in 2001 and subsequent years, the levies for those years are 
 13.28  subject to Minnesota Statutes, sections 126C.17, subdivision 10, 
 13.29  and 126C.18, subdivision 3, and the ballot shall also state the 
 13.30  estimated referendum tax rate as a percentage of market value 
 13.31  for taxes levied in 2001. 
 13.32     Sec. 40.  [REFERENDUM AUTHORITY; CONVERSION.] 
 13.33     Notwithstanding Minnesota Statutes, section 126C.18, 
 13.34  subdivisions 2 and 3, no school district may convert its 
 13.35  referendum authority currently authorized to be levied against 
 13.36  net tax capacity to referendum authority authorized to be levied 
 14.1   against referendum market value effective for taxes payable in 
 14.2   2000.  If a school district has adopted a plan for phasing in 
 14.3   the conversion of a referendum levy authority levied against net 
 14.4   tax capacity to a referendum authority levied against market 
 14.5   value, the amount of the levy authority levied against market 
 14.6   value for taxes payable in 2000, notwithstanding the plan, may 
 14.7   not exceed the amount levied against market value for taxes 
 14.8   payable in 1999. 
 14.9      Sec. 41.  [SUPPLEMENTAL AND TRANSITION LEVIES.] 
 14.10     Notwithstanding Minnesota Statutes, section 126C.10, 
 14.11  subdivisions 10 and 18, a school district's supplemental levy or 
 14.12  transition levy adjustment for the 2000-2001 school year shall 
 14.13  be no greater than it was for the prior year. 
 14.14     Sec. 42.  [GENERAL EDUCATION LEVY; OFF-FORMULA DISTRICTS.] 
 14.15     Notwithstanding Minnesota Statutes, section 126C.13, 
 14.16  subdivision 3, an off-formula school district's levy for general 
 14.17  education for the 2000-2001 school year shall be no greater than 
 14.18  it was for the prior year.  An off-formula school district's aid 
 14.19  reduction for general education levy equity under Minnesota 
 14.20  Statutes, section 126C.14, shall be computed using the levy 
 14.21  computed under this section.  If off-formula district payments 
 14.22  pursuant to Minnesota Statutes, section 126C.21, subdivision 3, 
 14.23  are reduced from that received in the prior school year, the 
 14.24  district shall receive additional aid equal to the difference. 
 14.25     Sec. 43.  [STAFF DEVELOPMENT LEVY.] 
 14.26     Notwithstanding Minnesota Statutes, section 122A.62, 
 14.27  subdivision 3, a school district's levy for staff development 
 14.28  for the 2000-2001 school year shall be no greater than it was 
 14.29  for the prior year. 
 14.30     Sec. 44.  [LEVY ADJUSTMENT.] 
 14.31     Notwithstanding any other law to the contrary, any 
 14.32  adjustment of a school district's levy authority other than for 
 14.33  debt redemption fund excesses under Minnesota Statutes, section 
 14.34  475.61, for taxes payable in 2000 shall not result in a levy 
 14.35  that is greater than it was in 1999.  If the resulting levy 
 14.36  adjustments reduce the district's revenues below the amount the 
 15.1   district would have otherwise received in the absence of this 
 15.2   section, the district will receive additional aid equal to the 
 15.3   difference. 
 15.4      Sec. 45.  [OTHER LEVY AUTHORITY.] 
 15.5      A school district's levy under any special law or any 
 15.6   authority other than that contained in Minnesota Statutes, 
 15.7   chapters 123B, 124D, 126C, 127A, and 136D, shall not be greater 
 15.8   for taxes payable in 2000 than it was for taxes payable in 1999 
 15.9   except for any debt service on obligations, certificates of 
 15.10  indebtedness, capital notes, or other debt instruments issued 
 15.11  prior to April 30, 1999, or to make payments on installment 
 15.12  purchase contracts or lease purchase agreements entered into 
 15.13  prior to April 30, 1999. 
 15.14     Sec. 46.  [BENEFIT RATIO FOR RURAL SERVICE DISTRICTS.] 
 15.15     Notwithstanding Minnesota Statutes, section 272.67, 
 15.16  subdivision 6, the benefit ratio used for apportioning levies to 
 15.17  a rural service district for taxes payable in 2000 shall not be 
 15.18  greater than that in effect for taxes payable in 1999. 
 15.19     Sec. 47.  [PROHIBITION AGAINST INCURRING NEW DEBT.] 
 15.20     Subdivision 1.  [GENERALLY.] (a) After July 31, 1999, no 
 15.21  municipality as defined in Minnesota Statutes, section 475.51, 
 15.22  or any special taxing district as defined under Minnesota 
 15.23  Statutes, section 275.066, may sell obligations, certificates of 
 15.24  indebtedness, or capital notes under Minnesota Statutes, chapter 
 15.25  475, section 412.301, or any other law authorizing obligations, 
 15.26  certificates of indebtedness, capital notes, or other debt 
 15.27  instruments or enter into installment purchase contracts or 
 15.28  lease purchase agreements under Minnesota Statutes, section 
 15.29  465.71, or any other law authorizing installment purchase 
 15.30  contracts or lease purchase agreements if issuing those debt 
 15.31  instruments or entering into those contracts would require a 
 15.32  levy first becoming due in 2000.  This restriction does not 
 15.33  apply to (1) refunding bonds sold to refund bonds originally 
 15.34  sold before August 1, 1999, or (2) obligations for which the 
 15.35  amount of the levy first becoming due in 2000 would not exceed 
 15.36  the amount by which the municipality's total debt service levy 
 16.1   for taxes payable in 2000 prior to issuance of those obligations 
 16.2   is less than the municipality's total debt service levy for 
 16.3   taxes payable in 1999.  As used in clause (2), "obligations" 
 16.4   includes certificates of indebtedness, capital notes, or other 
 16.5   debt instruments or installment purchase contracts or lease 
 16.6   purchase agreements.  
 16.7      (b) For purposes of this section, bonds will be deemed to 
 16.8   have been sold before August 1, 1999, if: 
 16.9      (1) an agreement has been entered into between the 
 16.10  municipality and a purchaser or underwriter for the sale of the 
 16.11  bonds by that date; 
 16.12     (2) the issuing municipality is a party to contract or 
 16.13  letter of understanding entered into before August 1, 1999, with 
 16.14  the federal government or the state government that requires the 
 16.15  municipality to pay for a project, and the project will be 
 16.16  funded with the proceeds of the bonds; or 
 16.17     (3) the proceeds of the bonds will be used to fund a 
 16.18  project or acquisition with respect to which the municipality 
 16.19  has entered into a contract with a builder or supplier before 
 16.20  August 1, 1999.  Debt service payments due on bonds described in 
 16.21  this paragraph during calendar year 2000 will be paid by the 
 16.22  state.  The amount of those payments must be repaid by the 
 16.23  municipality to the state in three equal annual installments 
 16.24  beginning in 2001.  No interest will be due on those payments if 
 16.25  they are timely paid by June 15 of the year due. 
 16.26     Subd. 2.  [EXCEPTION.] Notwithstanding subdivision 1, 
 16.27  certificates of indebtedness, capital notes, installment 
 16.28  purchase contracts, lease purchase agreements, or any other debt 
 16.29  instruments, and the debt service levies for the obligations 
 16.30  shall, for purposes of this act, be treated as if sold prior to 
 16.31  August 1, 1999, if: 
 16.32     (1) the municipality or other governmental authority has 
 16.33  satisfied any one of the following conditions prior to August 1, 
 16.34  1999: 
 16.35     (i) it has adopted a resolution or ordinance authorizing 
 16.36  the issuance of the obligations; 
 17.1      (ii) it has declared official intent to issue the 
 17.2   obligations under federal tax laws and regulations; or 
 17.3      (iii) it has entered into a binding agreement to design or 
 17.4   construct a project or acquire property to be financed with the 
 17.5   obligations; and 
 17.6      (2) the municipality makes a finding at the time of the 
 17.7   sale of the bonds that no levy will be required for taxes 
 17.8   payable in 2000 to pay the debt service on the obligations 
 17.9   because sufficient funds are available from nonproperty tax 
 17.10  sources to pay the debt service. 
 17.11     Sec. 48.  [1999 ASSESSMENT LIMITATIONS.] 
 17.12     Notwithstanding any other law to the contrary, the value of 
 17.13  property for the 1999 assessment shall not exceed the lesser of 
 17.14  its limited market value determined for the 1998 assessment 
 17.15  pursuant to Minnesota Statutes, section 273.11, subdivision 1a, 
 17.16  or its market value as otherwise determined for the 1998 
 17.17  assessment provided that any value attributable to new 
 17.18  construction or improvements to the extent it does not qualify 
 17.19  for deferral under Minnesota Statutes, section 273.11, 
 17.20  subdivision 16, shall be added to the prior year's value used to 
 17.21  determine its tax capacity.  The assessment of previously tax 
 17.22  exempt property that loses its tax exempt status pursuant to 
 17.23  Minnesota Statutes, section 272.02, subdivision 4, is not 
 17.24  limited in any way under this subdivision. 
 17.25     Sec. 49.  [LEVY LIMITATION TAXES PAYABLE IN 2000.] 
 17.26     Subdivision 1.  [TAXES PAYABLE IN 2000 PROPOSED LEVY.] 
 17.27  Notwithstanding any other law to the contrary, for purposes of 
 17.28  the certification required by Minnesota Statutes, section 
 17.29  275.065, subdivision 1, in 1999, no taxing authority other than 
 17.30  a school district shall certify to the county auditor a proposed 
 17.31  property tax levy or in the case of a township, a final property 
 17.32  tax levy, greater than the amount certified to the county 
 17.33  auditor pursuant to Minnesota Statutes, section 275.07, 
 17.34  subdivision 1, in the prior year except as provided in 
 17.35  subdivisions 3, 4, and 5. 
 17.36     Subd. 2.  [TAXES PAYABLE IN 2000 FINAL LEVY.] 
 18.1   Notwithstanding any other law to the contrary, for purposes of 
 18.2   the certification required by Minnesota Statutes, section 
 18.3   275.07, subdivision 1, in 1999, no taxing authority other than a 
 18.4   school district shall certify to the county auditor a property 
 18.5   tax levy greater than the amount certified to the county auditor 
 18.6   pursuant to Minnesota Statutes, section 275.07, subdivision 1, 
 18.7   in the prior year except as provided in subdivisions 4 to 7. 
 18.8      Subd. 3.  [SCHOOL DISTRICTS.] School district levies shall 
 18.9   be governed by sections 6 to 45. 
 18.10     Subd. 4.  [DEBT SERVICE EXCEPTION.] If a payable 2000 levy 
 18.11  for debt service on obligations, certificates of indebtedness, 
 18.12  capital notes, or other debt instruments sold prior to August 1, 
 18.13  1999, or to make payments on installment purchase contracts or 
 18.14  lease purchase agreements entered into prior to August 1, 1999, 
 18.15  exceeds the levy a taxing authority certified pursuant to 
 18.16  Minnesota Statutes, section 275.07, subdivision 1, for taxes 
 18.17  payable in 1999 for the same purpose, the excess may be levied 
 18.18  notwithstanding the limitations of subdivisions 1 and 2. 
 18.19     Subd. 5.  [ANNEXATION EXCEPTION.] The city tax rate for 
 18.20  taxes payable in 2000 on any property annexed under Minnesota 
 18.21  Statutes, chapter 414, may not be increased over the city or 
 18.22  township tax rate in effect on the property in 1999, 
 18.23  notwithstanding any law, municipal board order, or ordinance to 
 18.24  the contrary.  The limit on the annexing city's levy under 
 18.25  subdivisions 1 and 2 may be increased in excess of that limit by 
 18.26  an amount equal to the net tax capacity of the property annexed 
 18.27  times the city or township tax rate in effect on that property 
 18.28  for taxes payable in 1999.  The levy limit of the city or 
 18.29  township from which the property was annexed shall be reduced by 
 18.30  the same amount. 
 18.31     Subd. 6.  [INCREASE AUTHORIZED.] Notwithstanding the 
 18.32  limitation of subdivision 1, a taxing authority other than a 
 18.33  school district may increase its levy for taxes payable in 2000 
 18.34  over that certified to the county pursuant to Minnesota 
 18.35  Statutes, section 275.07, subdivision 1, in the prior year by an 
 18.36  amount equal to the taxing authority's net tax capacity pursuant 
 19.1   to section 48 times its tax rate for taxes payable in 1999 less 
 19.2   the taxing authority's levy under subdivision 1. 
 19.3      Subd. 7.  [REFERENDA.] (a) A taxing authority other than a 
 19.4   school district or an education district may increase its levy 
 19.5   above the limits provided in subdivisions 2 and 3 by the amount 
 19.6   approved by the voters residing in the jurisdiction of the 
 19.7   authority at a referendum called for the purpose.  The 
 19.8   referendum may be called by the governing body or shall be 
 19.9   called by the governing body upon written petition of qualified 
 19.10  voters of the jurisdiction.  The referendum shall be conducted 
 19.11  during the calendar year before the increased levy authority, if 
 19.12  approved, first becomes payable.  Only one election to approve 
 19.13  an increase may be held in a calendar year.  The referendum must 
 19.14  be held on the first Tuesday after the first Monday in 
 19.15  November.  The ballot shall state the maximum amount of the 
 19.16  increased levy and the estimated referendum tax rate as a 
 19.17  percentage of taxable net tax capacity in the year it is to be 
 19.18  levied.  The ballot may contain a textual portion with the 
 19.19  information required in this subdivision and a question stating 
 19.20  substantially the following: 
 19.21     "Shall the increase in the levy proposed by (petition to) 
 19.22  the governing body of ......... be approved?" 
 19.23     (b) The governing body shall prepare and deliver by first 
 19.24  class mail, at least 15 days but no more than 30 days prior to 
 19.25  the day of the referendum to each taxpayer, a notice of the 
 19.26  referendum and the proposed levy increase.  The governing body 
 19.27  need not mail more than one notice to any taxpayer.  For the 
 19.28  purpose of giving mailed notice under this subdivision, owners 
 19.29  shall be those shown to be owners on the records of the county 
 19.30  auditor or, in any county where tax statements are mailed by the 
 19.31  county treasurer, on the records of the county treasurer.  Every 
 19.32  property owner whose name does not appear on the records of the 
 19.33  county auditor or the county treasurer shall be deemed to have 
 19.34  waived this mailed notice unless the owner has requested in 
 19.35  writing that the county auditor or county treasurer, as the case 
 19.36  may be, include the name on the records for this purpose.  The 
 20.1   notice must project the anticipated amount of tax increase in 
 20.2   annual dollars and annual percentage for typical residential 
 20.3   homesteads, agricultural homesteads, apartments, and 
 20.4   commercial-industrial property within the jurisdiction of the 
 20.5   taxing authority. 
 20.6      The notice must include the following statement:  "Passage 
 20.7   of this referendum will result in an increase in your property 
 20.8   taxes." 
 20.9      (c) A petition authorized by paragraph (a) is effective if 
 20.10  signed by a number of qualified voters in excess of 15 percent 
 20.11  of the registered voters of the jurisdiction of the taxing 
 20.12  authority on the day the petition is filed with the governing 
 20.13  body.  A referendum invoked by petition shall be held on the 
 20.14  date specified in paragraph (a). 
 20.15     (d) The approval of 50 percent plus one of those voting on 
 20.16  the question is required to pass a referendum authorized by this 
 20.17  subdivision. 
 20.18     (e) A bond authorization under Minnesota Statutes, section 
 20.19  475.59, is deemed to meet the requirements of this subdivision 
 20.20  provided the ballot includes the information required in 
 20.21  paragraph (a) and the notice required in paragraph (b) is 
 20.22  distributed. 
 20.23     Sec. 50.  [FREEZE ON LOCAL MATCH REQUIREMENTS.] 
 20.24     Notwithstanding any other law to the contrary, the local 
 20.25  funding or local match required from any city, town, or county 
 20.26  for any state grant or program shall not be increased for 
 20.27  calendar year 2000 above the dollar amount of the local funding 
 20.28  or local match required for the same grant or program in 1999, 
 20.29  regardless of the level of state funding provided.  Any new 
 20.30  local match or local funding requirements for new or amended 
 20.31  state grants or programs is not effective until calendar year 
 20.32  2001.  Nothing in this section shall affect the eligibility of a 
 20.33  city, town, or county for the receipt of state grants or program 
 20.34  funds in 2000 or reduce the amount of state funding a city, 
 20.35  town, or county would otherwise receive in 2000 if the local 
 20.36  match requirements of the state grant or program were met in 
 21.1   1999. 
 21.2      Sec. 51.  [SUSPENSION OF SALARY AND BUDGET APPEAL 
 21.3   AUTHORIZATION.] 
 21.4      After March 11, 1999, no county sheriff may exercise the 
 21.5   authority granted under Minnesota Statutes, section 387.20, 
 21.6   subdivision 7, and no county attorney may exercise the authority 
 21.7   granted under Minnesota Statutes, section 388.18, subdivision 6, 
 21.8   to the extent that the salary or budget increase sought in the 
 21.9   appeal would result in an increase in county expenditures in 
 21.10  calendar year 2000. 
 21.11     Sec. 52.  [SUSPENSION OF PUBLICATION AND HEARING 
 21.12  REQUIREMENTS.] 
 21.13     A local taxing authority is not required to comply with the 
 21.14  public advertisement notice of Minnesota Statutes, section 
 21.15  275.065, subdivision 5a, or the public hearing requirement of 
 21.16  Minnesota Statutes, section 275.065, subdivision 6, with respect 
 21.17  to taxes levied in 1999, payable in 2000, only. 
 21.18     Sec. 53.  [FISCAL DISPARITIES FREEZE.] 
 21.19     Notwithstanding Minnesota Statutes, section 473F.08, 
 21.20  subdivision 2, clause (a), the amount to be deducted from a 
 21.21  governmental unit's net tax capacity for taxes payable in 2000 
 21.22  under that clause shall equal the amount deducted for taxes 
 21.23  payable in 1999.  Notwithstanding Minnesota Statutes, sections 
 21.24  276A.06, subdivision 2, clause (b), and 473F.08, subdivision 2, 
 21.25  clause (b), the amount to be added to a governmental unit's net 
 21.26  tax capacity for taxes payable in 2000 under clause (b) of the 
 21.27  applicable section shall equal the same amount added for taxes 
 21.28  payable in 1999.  Notwithstanding Minnesota Statutes, sections 
 21.29  276A.06, subdivision 3, and 473F.08, subdivision 3, the areawide 
 21.30  portion of the levy for each governmental unit shall be 
 21.31  determined using the local tax rate for the 1997 levy year.  
 21.32  Notwithstanding Minnesota Statutes, sections 276A.06, 
 21.33  subdivision 7, and 473F.08, subdivision 6, the portion of 
 21.34  commercial-industrial property within a municipality subject to 
 21.35  the areawide tax rate shall be computed using the amount 
 21.36  determined under Minnesota Statutes, sections 276A.04, 276A.05, 
 22.1   473F.06, and 473F.07, for taxes payable in 1999. 
 22.2      Sec. 54.  [TAX RATE FREEZE.] 
 22.3      Subdivision 1.  [REDUCTION OF LEVY; PAYMENT.] In the course 
 22.4   of determining local tax rates for taxes payable in 2000 after 
 22.5   reductions for disparity reduction aid under Minnesota Statutes, 
 22.6   section 275.08, subdivisions 1c and 1d, if the county auditor 
 22.7   finds the local tax rate exceeds the rate in effect for taxes 
 22.8   payable in 1999, except for increases authorized by referendum 
 22.9   under Minnesota Statutes section 126C.17, subdivisions 9 and 11, 
 22.10  the county auditor shall reduce the local government's levy so 
 22.11  the local tax rate, before inclusion of any levy increase 
 22.12  authorized by referendum, does not exceed that in effect for 
 22.13  taxes payable in 1999.  The difference between the levy as 
 22.14  originally certified by the local government and the reduced 
 22.15  levy shall be certified to the commissioner of revenue at the 
 22.16  time the abstracts are submitted under Minnesota Statutes, 
 22.17  section 275.29.  That amount shall be paid to the local 
 22.18  government on or before August 31, 2000. 
 22.19     Subd. 2.  [APPROPRIATION.] An amount sufficient to pay the 
 22.20  aid provided under this section is appropriated from the general 
 22.21  fund to the commissioner of revenue for payment to counties, 
 22.22  cities, townships, and special taxing districts.  An amount 
 22.23  sufficient to pay the aid provided under this section is 
 22.24  appropriated from the general fund to the commissioner of 
 22.25  children, families, and learning for payment to school districts.
 22.26     Sec. 55.  [PENSION LIABILITIES.] 
 22.27     Notwithstanding any other law or charter provision to the 
 22.28  contrary, no levy for taxes payable in 2000 for a local police 
 22.29  and fire relief association for the purpose of amortizing an 
 22.30  unfunded pension liability may exceed the levy for that purpose 
 22.31  for taxes payable in 1999. 
 22.32     Sec. 56.  [DUTIES OF TOWNSHIP BOARD OF SUPERVISORS.] 
 22.33     Notwithstanding Minnesota Statutes, section 365.10, in 1999 
 22.34  the township board of supervisors shall adjust the levy and in 
 22.35  2000 the township board of supervisors may adjust the 
 22.36  expenditures of a township below the level authorized by the 
 23.1   electors to adjust for any reduction in the previously 
 23.2   authorized levy of the township pursuant to section 49. 
 23.3      Sec. 57.  [PROPERTY TAX AND EDUCATION AIDS REFORM.] 
 23.4      Subdivision 1.  [RECOMMENDED PROGRAM.] The legislative 
 23.5   commission on planning and fiscal policy shall prepare and 
 23.6   recommend to the legislature a property tax reform and education 
 23.7   aids reform program that includes: 
 23.8      (1) a property tax classification and class rate system; 
 23.9      (2) elementary and secondary education aids and levies; and 
 23.10     (3) aids to local government. 
 23.11     Subd. 2.  [STANDARDS.] (a) The recommended program must 
 23.12  provide for accountability, equity, revenue adequacy, and 
 23.13  efficiency as provided in paragraphs (b) to (e). 
 23.14     (b) The recommended program must provide accountability by 
 23.15  being understandable to the taxpayer, by linking the costs of 
 23.16  services to the taxes paid for those services, and by 
 23.17  correlating the responsibility for raising revenues with the 
 23.18  ability to make spending decisions.  
 23.19     (c) The recommended program must provide equity by 
 23.20  minimizing large, short-term shifts in tax burdens, and by 
 23.21  ensuring that tax burdens and aids are progressive and related 
 23.22  to the ability to pay or raise revenue.  
 23.23     (d) The recommended program must provide for adequate 
 23.24  revenue by controlling costs and the need for increased revenue, 
 23.25  minimizing reductions or shifts in revenues available to local 
 23.26  governments to provide needed services, and directing aids to 
 23.27  meet needs and fund services based on established funding 
 23.28  priorities.  
 23.29     (e) The program must promote efficiency by providing stable 
 23.30  predictable property taxes and local government revenues that 
 23.31  are competitive with those of other states and areas so that 
 23.32  property taxes and aids have minimal impact on the economic 
 23.33  decisions of taxpayers.  
 23.34     Subd. 3.  [TASK FORCE.] The commission may designate a task 
 23.35  force to advise the commission in carrying out its duties under 
 23.36  this section.  The task force may include legislators, agency 
 24.1   and legislative staff, state and local governmental officials, 
 24.2   educators, and taxpayers and members of the public.  The task 
 24.3   force expires on January 1, 2001. 
 24.4      Subd. 4.  [SERVICES.] The commission may enter into 
 24.5   contracts for the professional and other services necessary to 
 24.6   carry out its duties under this section. 
 24.7      Subd. 5.  [REPORT.] The commission shall report its 
 24.8   recommendations to the legislature by January 1, 2001.  The 
 24.9   report shall include proposed legislation to implement the 
 24.10  recommendations of the commission. 
 24.11     Sec. 58.  [UNFUNDED MANDATE PROHIBITION.] 
 24.12     Subdivision 1.  [DEFINITION.] As used in this section, 
 24.13  "state mandates" has the meaning given in Minnesota Statutes, 
 24.14  section 3.989. 
 24.15     Subd. 2.  [FUNDING OF THE COST OF MANDATES.] If the fiscal 
 24.16  note prepared by the commissioner of finance under Minnesota 
 24.17  Statutes, section 3.987, indicates that a new or expanded 
 24.18  mandate on a political subdivision in a bill introduced in the 
 24.19  legislature will impose a statewide cost on counties in excess 
 24.20  of $200,000 or a statewide cost on cities or townships in excess 
 24.21  of $200,000, in calendar year 2000, the political subdivisions 
 24.22  are not required to implement the mandate in calendar year 2000 
 24.23  unless the legislature, by appropriation enacted before the 
 24.24  mandate is required to be implemented, provides reimbursement to 
 24.25  the political subdivisions for the costs incurred. 
 24.26     Sec. 59.  [SAVINGS CLAUSE.] 
 24.27     Notwithstanding any other provision in this act to the 
 24.28  contrary, nothing in this act constitutes an impairment of any 
 24.29  obligations, certificates of indebtedness, capital notes, or 
 24.30  other debt instruments, including installment purchase contracts 
 24.31  or lease purchase agreements, issued before the date of final 
 24.32  enactment of this act, by a municipality as defined in Minnesota 
 24.33  Statutes, section 469.174, subdivision 6, or a special taxing 
 24.34  district as defined in Minnesota Statutes, section 275.066.  
 24.35     Sec. 60.  [EFFECTIVE DATE.] 
 24.36     Sections 2 to 5 are effective July 1, 1999.