SF 1176

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to prohibiting property tax increases for 
  1.3             taxes payable in 1998; imposing limits on property tax 
  1.4             increases for later years; requiring a study; 
  1.5             appropriating money; amending Minnesota Statutes 1996, 
  1.6             sections 119B.08, subdivision 3; 254B.02, subdivision 
  1.7             3; 279.09; 279.10; 281.23, subdivision 3; and 375.169; 
  1.8             repealing Minnesota Statutes 1996, sections 119B.11, 
  1.9             subdivision 4; 124.01, subdivision 1; 124.06; 124.07; 
  1.10            124.76; 124.82; 124.829; 124.83; 124.84; 124.85; 
  1.11            124.86; 124.90; 124.91, subdivisions 1, 2, 4, 5, 6, 
  1.12            and 7; 124.912, subdivisions 1, 2, 3, 6, 7, and 9; 
  1.13            124.914; 124.916; 124.918; 124.95; 124.961; 124.97; 
  1.14            124A.02, subdivisions 16, 23, and 24; 124A.03, 
  1.15            subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 
  1.16            124A.0311; 124A.032; 124A.04; 124A.22, subdivisions 1, 
  1.17            2, 3, 4, 4a, 4b, 6, 6a, 8, 8a, 10, 11, 12, 13, 13a, 
  1.18            13b, 13c, 13d, 13e, and 13f; 124A.23; 124A.24; 
  1.19            124A.28; 124A.29; 273.13, subdivisions 21a, 21b, 22, 
  1.20            23, 24, and 25; 273.135, subdivisions 1, 2, 3, and 5; 
  1.21            273.136; 273.1391, subdivisions 1, 2, 3, 4, and 5; 
  1.22            473F.001; 473F.01; 473F.02, subdivisions 1, 3, 4, 5, 
  1.23            6, and 21; 473F.03; 473F.05; 473F.06; 473F.07; 
  1.24            473F.08, subdivisions 1, 2, 3, 3a, 3b, 4, 5, 5a, 6, 
  1.25            7a, 8a, and 10; 473F.09; 473F.10; 473F.11; 473F.13; 
  1.26            477A.011, subdivisions 1, 1a, 1b, 2a, 3, 19, 20, 21, 
  1.27            27, 28, 29, 30, 31, 32, 33, 34, 35, 36, and 37; 
  1.28            477A.0121; 477A.0122; 477A.013, subdivisions 1, 8, and 
  1.29            9; 477A.0132; 477A.014, subdivisions 1, 2, 3, 4, and 
  1.30            5; 477A.015; 477A.016; 477A.017; 477A.03, subdivision 
  1.31            3; 477A.11; 477A.12; 477A.13; 477A.14; and 477A.15. 
  1.32  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.33     Section 1.  Minnesota Statutes 1996, section 119B.08, 
  1.34  subdivision 3, is amended to read: 
  1.35     Subd. 3.  [CHILD CARE FUND PLAN.] Effective January 1, 
  1.36  1992, the county will include the plan required under this 
  1.37  subdivision in its biennial community social services plan 
  1.38  required in this section, for the group described in section 
  2.1   256E.03, subdivision 2, paragraph (h).  For the period July 1, 
  2.2   1989, to December 31, 1991, the county shall submit separate 
  2.3   child care fund plans required under this subdivision for the 
  2.4   periods July 1, 1989, to June 30, 1990; and July 1, 1990, to 
  2.5   December 31, 1991.  The commissioner shall establish the dates 
  2.6   by which the county must submit these plans.  The county and 
  2.7   designated administering agency shall submit to the commissioner 
  2.8   an annual child care fund allocation plan.  The plan shall 
  2.9   include: 
  2.10     (1) a narrative of the total program for child care 
  2.11  services, including all policies and procedures that affect 
  2.12  eligible families and are used to administer the child care 
  2.13  funds; 
  2.14     (2) the number of families that requested a child care 
  2.15  subsidy in the previous year, the number of families receiving 
  2.16  child care assistance, the number of families on a waiting list, 
  2.17  and the number of families projected to be served during the 
  2.18  fiscal year; 
  2.19     (3) the methods used by the county to inform eligible 
  2.20  groups of the availability of child care assistance and related 
  2.21  services; 
  2.22     (4) the provider rates paid for all children by provider 
  2.23  type; 
  2.24     (5) the county prioritization policy for all eligible 
  2.25  groups under the basic sliding fee program and AFDC child care 
  2.26  program; 
  2.27     (6) a report of all funds available to be used for child 
  2.28  care assistance, including demonstration of compliance with the 
  2.29  maintenance of funding effort required under section 119B.11; 
  2.30  and 
  2.31     (7) other information as requested by the department to 
  2.32  ensure compliance with the child care fund statutes and rules 
  2.33  promulgated by the commissioner. 
  2.34     The commissioner shall notify counties within 60 days of 
  2.35  the date the plan is submitted whether the plan is approved or 
  2.36  the corrections or information needed to approve the plan.  The 
  3.1   commissioner shall withhold a county's allocation until it has 
  3.2   an approved plan.  Plans not approved by the end of the second 
  3.3   quarter after the plan is due may result in a 25 percent 
  3.4   reduction in allocation.  Plans not approved by the end of the 
  3.5   third quarter after the plan is due may result in a 100 percent 
  3.6   reduction in the allocation to the county.  Counties are to 
  3.7   maintain services despite any reduction in their allocation due 
  3.8   to plans not being approved. 
  3.9      Sec. 2.  Minnesota Statutes 1996, section 254B.02, 
  3.10  subdivision 3, is amended to read: 
  3.11     Subd. 3.  [RESERVE ACCOUNT.] The commissioner shall 
  3.12  allocate money from the reserve account to counties that, during 
  3.13  the current fiscal year, have met or exceeded the base level of 
  3.14  expenditures for eligible chemical dependency services from 
  3.15  local money.  The commissioner shall establish the base level 
  3.16  for fiscal year 1988 as the amount of local money used for 
  3.17  eligible services in calendar year 1986.  In later years, the 
  3.18  base level must be increased in the same proportion as state 
  3.19  appropriations to implement Laws 1986, chapter 394, sections 8 
  3.20  to 20, are increased.  The base level must be decreased if the 
  3.21  fund balance from which allocations are made under section 
  3.22  254B.02, subdivision 1, is decreased in later years.  The base 
  3.23  level of expenditures for each county is defined as 15 percent 
  3.24  of the funds allocated to the county under subdivisions 1 and 
  3.25  2.  The local match rate for the reserve account is the same 
  3.26  rate as applied to the initial allocation.  Reserve account 
  3.27  payments must not be included when calculating the county 
  3.28  adjustments made according to subdivision 2. 
  3.29     Sec. 3.  Minnesota Statutes 1996, section 279.09, is 
  3.30  amended to read: 
  3.31     279.09 [PUBLICATION OF NOTICE AND LIST.] 
  3.32     The county auditor shall cause the notice and list of 
  3.33  delinquent real property to be published once in each of two 
  3.34  consecutive weeks in the newspaper designated, the first 
  3.35  publication of which shall be made on or before March 20 
  3.36  immediately following the filing of such list with the court 
  4.1   administrator of the district court.  The auditor shall deliver 
  4.2   such list to the publisher of the newspaper designated, at least 
  4.3   20 days before the date upon which the list shall be published 
  4.4   for the first time.  
  4.5      Sec. 4.  Minnesota Statutes 1996, section 279.10, is 
  4.6   amended to read: 
  4.7      279.10 [PUBLICATION CORRECTED.] 
  4.8      Immediately after preparing forms for printing such notice 
  4.9   and list, and at least five days before the first day for the 
  4.10  publication thereof, every such publisher shall furnish proof of 
  4.11  the proposed publication to the county auditor for correction.  
  4.12  When such copy has been corrected, the auditor shall return the 
  4.13  same to the printer, who shall publish it as corrected.  On the 
  4.14  first day on which such notice and list are published, the 
  4.15  publisher shall mail a copy of the newspaper containing the same 
  4.16  to the auditor.  If during the publication of the notice and 
  4.17  list, or within ten days after the last publication thereof, the 
  4.18  auditor shall discover that such publication is invalid, the 
  4.19  auditor shall forthwith direct the publisher to republish the 
  4.20  same as corrected for an additional period of two weeks.  The 
  4.21  publisher, if not neglectful, shall be entitled to the same 
  4.22  compensation as allowed by law for the original publication, but 
  4.23  shall receive no further compensation therefor if such 
  4.24  republication is necessary by reason of the neglect of the 
  4.25  publisher. 
  4.26     Sec. 5.  Minnesota Statutes 1996, section 281.23, 
  4.27  subdivision 3, is amended to read: 
  4.28     Subd. 3.  [PUBLICATION.] As soon as practicable after the 
  4.29  posting of the notice prescribed in subdivision 2, the county 
  4.30  auditor shall cause to be published for two successive weeks, in 
  4.31  the official newspaper of the county, the notice prescribed by 
  4.32  subdivision 2.  
  4.33     Sec. 6.  Minnesota Statutes 1996, section 375.169, is 
  4.34  amended to read: 
  4.35     375.169 [PUBLICATION OF SUMMARY BUDGET STATEMENT.] 
  4.36     Annually, upon adoption of the county budget, the county 
  5.1   board shall cause a summary budget statement to be published in 
  5.2   one of the following: 
  5.3      (1) the official newspaper of the county, or if there is 
  5.4   none, in a qualified newspaper of general circulation in the 
  5.5   county.; or 
  5.6      (2) for a county in the metropolitan area as defined in 
  5.7   section 473.121, subdivision 2, a county newsletter or other 
  5.8   county mailing sent to all households in the city, or as an 
  5.9   insert with the truth-in-taxation notice under section 275.065. 
  5.10     If the summary budget statement is published in a county 
  5.11  newsletter, it must be the lead story.  If the summary budget 
  5.12  statement is published through a county newsletter or other 
  5.13  county mailing, a copy of the newsletter or mailing shall be 
  5.14  sent on request to any nonresident.  If the summary budget 
  5.15  statement is published by a mailing to households other than a 
  5.16  newsletter, the color of the paper on which the summary budget 
  5.17  statement is printed must be distinctively different than the 
  5.18  paper containing other printed material included in the 
  5.19  mailing.  The statement shall contain information relating to 
  5.20  anticipated revenues and expenditures in a form prescribed by 
  5.21  the state auditor.  The form prescribed shall be designed so 
  5.22  that comparisons can be made between the current year and the 
  5.23  budget year.  A note shall be included that the complete budget 
  5.24  is available for public inspection at a designated location 
  5.25  within the county.  
  5.26     Sec. 7.  [EDUCATION FINANCE FOR THE 1998-1999 SCHOOL YEAR.] 
  5.27     Subdivision 1.  [ADJUSTED TAX CAPACITY FOR SCHOOL YEAR 
  5.28  1998-1999.] Notwithstanding any other law to the contrary, for 
  5.29  purposes of any levy authorized under Minnesota Statutes, 
  5.30  chapter 124, 124A, 124B, 136C, or 136D, the adjusted net tax 
  5.31  capacity of a school district, education district, or 
  5.32  intermediate school district under Minnesota Statutes, section 
  5.33  124.2131, for the 1998-1999 school year shall equal the adjusted 
  5.34  net tax capacity used for computation of its levy limits for the 
  5.35  1997-1998 school year. 
  5.36     Subd. 2.  [LOCAL EFFORT TAX RATE AND EQUALIZING FACTOR.] 
  6.1   Notwithstanding any other law to the contrary, the local effort 
  6.2   tax rates computed under Minnesota Statutes, section 124A.23, 
  6.3   for the 1998-1999 school year shall equal the local effort tax 
  6.4   rates established at the time of levy limit certification for 
  6.5   the 1997-1998 school year.  Notwithstanding any other law to the 
  6.6   contrary, the equalizing factor under Minnesota Statutes, 
  6.7   section 124A.02, for the 1998-1999 school year shall equal the 
  6.8   equalizing factor for the 1997-1998 school year. 
  6.9      Subd. 3.  [COMPUTATION OF PUPIL UNITS FOR LEVY LIMITS.] 
  6.10  Notwithstanding Minnesota Statutes, section 124.17, or any other 
  6.11  law to the contrary, the number of pupil units and AFDC pupil 
  6.12  units for a school district, education district, or intermediate 
  6.13  school district for use in computing the levy limits of the 
  6.14  district or technical college for the 1998-1999 school year 
  6.15  shall be the pupil units and AFDC pupil units used for the levy 
  6.16  limit computation of the school district, education district, 
  6.17  intermediate school district, or technical college for the 
  6.18  1997-1998 school year.  For purposes of computing the revenue 
  6.19  entitlement of a school district under Minnesota Statutes, 
  6.20  chapter 124, 124A, 124B, or 136D, for the 1998-1999 school year, 
  6.21  the pupil units or AFDC pupil units shall be as otherwise 
  6.22  provided under Minnesota Statutes, section 124.17.  If any 
  6.23  section of Minnesota Statutes, chapters 124, 124A, and 124B, 
  6.24  provides that an aid entitlement is equal to the difference 
  6.25  between the revenue entitlement and the authorized levy, then 
  6.26  the aid entitlement for the 1998-1999 school year shall equal 
  6.27  the difference between the revenue entitlement and authorized 
  6.28  levies computed under this section and sections 7 to 51.  If any 
  6.29  section of Minnesota Statutes, chapters 124, 124A, and 124B, 
  6.30  other than sections 124.321 and 124.912, subdivision 2, provide 
  6.31  that the aid entitlement will be reduced if a district fails to 
  6.32  exercise its full levy authority and the district failed to levy 
  6.33  its full authority for the 1997-1998 school year, the 
  6.34  commissioner shall assume that, absent the provisions of this 
  6.35  act, the district would have elected to exercise the same 
  6.36  portion of its levy authority for the 1998-1999 school year as 
  7.1   it did in the prior year and determine the district's aid under 
  7.2   the applicable section and the prior sentence. 
  7.3      Sec. 8.  [TRANSITIONAL LEVIES.] 
  7.4      Notwithstanding Minnesota Statutes, sections 122.247, 
  7.5   subdivision 3, and 122.533, a school district's levy under those 
  7.6   sections for taxes payable in 1998 shall be no greater than it 
  7.7   was for the prior year. 
  7.8      Sec. 9.  [BONDS.] 
  7.9      (a) Notwithstanding Minnesota Statutes, section 124.239, 
  7.10  after July 31, 1997, no school district can sell bonds under 
  7.11  that section the debt service payments of which would require a 
  7.12  levy first becoming payable in 1998 or authorize a levy under 
  7.13  Minnesota Statutes, section 124.239, subdivision 5, clause (b), 
  7.14  that is not pursuant to a plan adopted prior to August 1, 1997.  
  7.15  This restriction shall not apply to (1) refunding bonds sold to 
  7.16  refund bonds originally sold before August 1, 1997, or (2) bonds 
  7.17  for which the amount of the levy first becoming due in 1998 
  7.18  would not exceed the amount by which the school district's total 
  7.19  levy for debt service on bonds for taxes payable in 1998 prior 
  7.20  to issuance of those bonds is less than the municipality's total 
  7.21  levy for debt service for bonds for taxes payable in 1997. 
  7.22     (b) For purposes of this section, bonds will be deemed to 
  7.23  have been sold before August 1, 1997, if: 
  7.24     (1) an agreement has been entered into between the school 
  7.25  district and a purchaser or underwriter for the sale of the 
  7.26  bonds by that date; 
  7.27     (2) the issuing school district is a party to a contract or 
  7.28  letter of understanding entered into before August 1, 1997, with 
  7.29  the federal government that requires the school district to pay 
  7.30  for a project, and the project will be funded with the proceeds 
  7.31  of the bonds; or 
  7.32     (3) the proceeds of the bonds will be used to fund a 
  7.33  project or acquisition with respect to which the school district 
  7.34  has entered into a contract with a builder or supplier before 
  7.35  August 1.  Debt service payments due on bonds described in this 
  7.36  paragraph during calendar year 1998 will be paid by the state.  
  8.1   The amount of those payments must be repaid by the school 
  8.2   district to the state in three equal annual installments 
  8.3   beginning in 1999.  No interest will be due on those payments if 
  8.4   timely paid by June 15 of the year due. 
  8.5      Sec. 10.  [TARGETED NEEDS LEVY.] 
  8.6      Notwithstanding Minnesota Statutes, section 124.314, a 
  8.7   school district's targeted needs levy for the 1998-1999 school 
  8.8   year shall be no greater than it was for the prior year. 
  8.9      Sec. 11.  [LEVY FOR ADULT BASIC EDUCATION AID.] 
  8.10     Notwithstanding Minnesota Statutes, section 124.2601, 
  8.11  school districts which did not levy for adult basic education 
  8.12  for taxes payable in 1997, may not levy for that purpose for 
  8.13  taxes payable in 1998. 
  8.14     Sec. 12.  [EARLY CHILDHOOD FAMILY EDUCATION AND HOME 
  8.15  VISITING LEVY.] 
  8.16     Notwithstanding Minnesota Statutes, section 124.2711, 
  8.17  subdivisions 2a and 5, a school district's levy for early 
  8.18  childhood family education and home visiting under Minnesota 
  8.19  Statutes, section 124.2711, subdivision 5, for school year 
  8.20  1998-1999 shall be no greater than it was for the prior year. 
  8.21     Sec. 13.  [COMMUNITY EDUCATION LEVY.] 
  8.22     Notwithstanding Minnesota Statutes, section 124.2713, 
  8.23  subdivision 6, 6a, or 6b, the community education levy of a 
  8.24  school district for the 1998-1999 school year shall be no 
  8.25  greater than it was for the prior year. 
  8.26     Sec. 14.  [LEVY FOR ADDITIONAL COMMUNITY EDUCATION 
  8.27  REVENUE.] 
  8.28     Notwithstanding Minnesota Statutes, section 124.2714, a 
  8.29  school district's levy under that section for school year 
  8.30  1998-1999 shall be no greater than it was for the prior year. 
  8.31     Sec. 15.  [PROGRAMS FOR ADULTS WITH DISABILITIES; LEVY.] 
  8.32     Notwithstanding Minnesota Statutes, section 124.2715, 
  8.33  subdivision 3, a school district's levy for community education 
  8.34  programs for adults with disabilities for the 1998-1999 school 
  8.35  year shall be no greater than it was for the prior year. 
  8.36     Sec. 16.  [EXTENDED DAY LEVY.] 
  9.1      Notwithstanding Minnesota Statutes, section 124.2716, a 
  9.2   school district's levy under that section for the 1998-1999 
  9.3   school year shall be no greater than it was for the prior year. 
  9.4      Sec. 17.  [COOPERATION AND COMBINATION LEVY.] 
  9.5      Notwithstanding Minnesota Statutes, section 124.2725, 
  9.6   subdivisions 3 and 4, a school district's levy for cooperation 
  9.7   and combination for the 1998-1999 school year shall be no 
  9.8   greater than it was for the prior year. 
  9.9      Sec. 18.  [EARLY RETIREMENT AND SEVERANCE LEVY.] 
  9.10     Notwithstanding Minnesota Statutes, section 124.2725, 
  9.11  subdivision 15, a school district's levy for the 1998-1999 
  9.12  school year for severance pay or early retirement incentives for 
  9.13  licensed and nonlicensed staff who retire early as the result of 
  9.14  combination or cooperation shall be no greater than it was for 
  9.15  the prior year. 
  9.16     Sec. 19.  [CONSOLIDATION; RETIREMENT LEVY.] 
  9.17     Notwithstanding Minnesota Statutes, section 124.2726, 
  9.18  subdivision 3, a school district's levy for retirement 
  9.19  incentives under Minnesota Statutes, section 122.23, subdivision 
  9.20  20, for the 1998-1999 school year shall be no greater than it 
  9.21  was for the prior year. 
  9.22     Sec. 20.  [DISTRICT COOPERATION LEVY.] 
  9.23     Notwithstanding Minnesota Statutes, section 124.2727, 
  9.24  subdivisions 6b and 9, a school district's levy for district 
  9.25  cooperation for the 1998-1999 school year shall be no greater 
  9.26  than it was for the prior year. 
  9.27     Sec. 21.  [SPECIAL EDUCATION EQUALIZATION LEVY.] 
  9.28     Notwithstanding Minnesota Statutes, section 124.321, 
  9.29  subdivisions 3 and 5, a school district's special education 
  9.30  equalization levy for the 1998-1999 school year shall be no 
  9.31  greater than it was for the prior year.  If the resulting levy 
  9.32  is less than the school district would have levied under 
  9.33  Minnesota Statutes, section 124.321, subdivisions 3 and 5, the 
  9.34  district shall receive additional aid equal to the difference. 
  9.35     Sec. 22.  [JOINT POWERS BOARD; EARLY RETIREMENT AND 
  9.36  SEVERANCE LEVY.] 
 10.1      Notwithstanding Minnesota Statutes, section 124.4945, a 
 10.2   school district's levy for the 1998-1999 school year for 
 10.3   severance pay and early retirement incentives to a teacher as 
 10.4   defined in Minnesota Statutes, section 125.12, subdivision 1, 
 10.5   who is placed on unrequested leave as the result of a 
 10.6   cooperative secondary facility agreement shall be no greater 
 10.7   than it was for the prior year. 
 10.8      Sec. 23.  [FACILITIES DOWN PAYMENT LEVY REFERENDUM.] 
 10.9      Notwithstanding Minnesota Statutes, section 124.82, 
 10.10  subdivision 3, no facilities down payment levy referendum held 
 10.11  after August 1, 1997, may authorize a levy first becoming 
 10.12  payable in 1998. 
 10.13     Sec. 24.  [HEALTH AND SAFETY LEVY.] 
 10.14     Notwithstanding Minnesota Statutes, section 124.83, 
 10.15  subdivisions 4 and 7, a school district's levy for a health and 
 10.16  safety program under Minnesota Statutes, section 124.83, for the 
 10.17  1998-1999 school year shall be no greater than it was for the 
 10.18  prior year.  If the resulting levy is less than the school 
 10.19  district would have levied under Minnesota Statutes, section 
 10.20  124.83, subdivisions 4 and 7, the district shall receive 
 10.21  additional aid equal to the difference. 
 10.22     Sec. 25.  [HANDICAPPED ACCESS AND FIRE SAFETY LEVY.] 
 10.23     Notwithstanding Minnesota Statutes, section 124.84, 
 10.24  subdivisions 3 and 4, a school district's levy for purposes of 
 10.25  Minnesota Statutes, section 124.84, subdivisions 1 and 2, for 
 10.26  the 1998-1999 school year shall be no greater than it was for 
 10.27  the prior year.  If the resulting levy is less than the school 
 10.28  district would have levied under Minnesota Statutes, section 
 10.29  124.84, subdivision 3, the district may levy the difference in 
 10.30  the subsequent year notwithstanding the eight-year limitation in 
 10.31  section 124.84, subdivision 3. 
 10.32     Sec. 26.  [LEVY TO RENT OR LEASE BUILDING OR LAND.] 
 10.33     Notwithstanding Minnesota Statutes, section 124.91, 
 10.34  subdivision 1, after August 1, 1997, the commissioner of 
 10.35  education shall not authorize any school district to make any 
 10.36  additional capital expenditure levy to rent or lease a building 
 11.1   or land for instructional purposes if the levy for that purpose 
 11.2   first becomes due and payable in 1998 unless the district's 
 11.3   capital expenditure levy for taxes payable in 1998 including the 
 11.4   levy for the new obligation, would not exceed its levy for that 
 11.5   purpose for taxes payable in 1997. 
 11.6      Sec. 27.  [LEVY FOR LEASE PURCHASE OR INSTALLMENT BUYS.] 
 11.7      (a) Except as provided in paragraph (b), after July 31, 
 11.8   1997, no school district may enter into an installment contract 
 11.9   or a lease purchase agreement the levy for which would first 
 11.10  become payable in 1998 unless the district's total levy for 
 11.11  installment contracts and lease purchase agreements for taxes 
 11.12  payable in 1998, including the levy for the new obligation, 
 11.13  would not exceed its levy for that purpose for taxes payable in 
 11.14  1997. 
 11.15     (b) For purposes of this section, installment contracts or 
 11.16  lease purchase agreements will be deemed to have been entered 
 11.17  into before August 1, 1997, if: 
 11.18     (1) an agreement has been entered into between the school 
 11.19  district and a lessor or seller by that date; 
 11.20     (2) the school district is a party to contract or letter of 
 11.21  understanding entered into before August 1, 1997, with the 
 11.22  federal government that requires the school district to pay for 
 11.23  a project, and the project will be funded with the proceeds of 
 11.24  the installment contracts or lease purchase agreements; or 
 11.25     (3) the installment contracts or lease purchase agreements 
 11.26  will be used to fund a project or acquisition with respect to 
 11.27  which the school district has entered into a contract with a 
 11.28  builder or supplier before August 1, 1997.  Payments due on 
 11.29  installment contracts or lease purchase agreements described in 
 11.30  this paragraph during calendar year 1998 will be paid by the 
 11.31  state.  The amount of those payments must be repaid by the 
 11.32  school district to the state in three equal annual installments 
 11.33  beginning in 1999.  No interest will be due on those payments if 
 11.34  timely paid by June 15 of the year due. 
 11.35     Sec. 28.  [COOPERATING DISTRICTS; CAPITAL LEVY.] 
 11.36     Notwithstanding Minnesota Statutes, section 124.91, 
 12.1   subdivision 4, a school district's levy under that subdivision 
 12.2   for the 1997-1998 school year shall be no greater than it was 
 12.3   for the prior year. 
 12.4      Sec. 29.  [LEVY FOR INTERACTIVE TELEVISION.] 
 12.5      Notwithstanding Minnesota Statutes, section 124.91, 
 12.6   subdivision 5, a school district's levy for interactive 
 12.7   television for the 1998-1999 school year shall be no greater 
 12.8   than it was for the prior year. 
 12.9      Sec. 30.  [ENERGY CONSERVATION LEVY.] 
 12.10     Notwithstanding Minnesota Statutes, section 124.91, 
 12.11  subdivision 6, a school district may not enter into a loan under 
 12.12  Minnesota Statutes, section 216C.37 or sections 298.292 to 
 12.13  298.298 after July 31, 1997, if the levy for repayment of the 
 12.14  loan would first become payable in 1998. 
 12.15     Sec. 31.  [LEVY FOR STATUTORY OBLIGATIONS.] 
 12.16     Notwithstanding Minnesota Statutes, section 124.912, 
 12.17  subdivision 1, a school district's levy as otherwise authorized 
 12.18  under that subdivision for the 1998-1999 school year shall be no 
 12.19  greater than it was for the prior year.  To the extent that the 
 12.20  portion of the resulting levy for the school district's 
 12.21  obligation under Minnesota Statutes, sections 268.06, 
 12.22  subdivision 25, and 268.08, is less than the school district 
 12.23  would have been otherwise authorized to levy under Minnesota 
 12.24  Statutes, section 124.912, subdivision 1, the school district 
 12.25  shall receive additional aid equal to the difference.  To the 
 12.26  extent that the portion of the resulting levy for judgments 
 12.27  under Minnesota Statutes, section 127.05, is less than the 
 12.28  school district would have been authorized to levy under 
 12.29  Minnesota Statutes, section 124.912, subdivision 1, for this 
 12.30  purpose, the school district may levy the difference in the 
 12.31  subsequent year. 
 12.32     Sec. 32.  [DESEGREGATION LEVY.] 
 12.33     Notwithstanding Minnesota Statutes, section 124.912, 
 12.34  subdivision 2, a school district's levy as otherwise authorized 
 12.35  under that subdivision for the 1997-1998 school year shall be no 
 12.36  greater than it was for the prior year.  If the resulting levy 
 13.1   is less than the school district would have levied under that 
 13.2   subdivision, the school district shall receive additional aid 
 13.3   equal to the difference. 
 13.4      Sec. 33.  [RULE COMPLIANCE LEVY.] 
 13.5      Notwithstanding Minnesota Statutes, section 124.912, 
 13.6   subdivision 3, a school district's levy as otherwise authorized 
 13.7   under that subdivision for the 1997-1998 school year shall be no 
 13.8   greater than it was for the prior year.  If the resulting levy 
 13.9   is less than the school district would have levied under that 
 13.10  subdivision, the school district shall receive additional aid 
 13.11  equal to the difference. 
 13.12     Sec. 34.  [LEVY FOR CRIME-RELATED COSTS.] 
 13.13     Notwithstanding Minnesota Statutes, section 124.912, 
 13.14  subdivision 6, a school district's levy as otherwise authorized 
 13.15  under that subdivision for the 1998-1999 school year shall be no 
 13.16  greater than it was for the prior year. 
 13.17     Sec. 35.  [ICE ARENA LEVY.] 
 13.18     Notwithstanding Minnesota Statutes, section 124.912, 
 13.19  subdivision 7, a school district's levy as otherwise authorized 
 13.20  under that subdivision for the 1998-1999 school year shall be no 
 13.21  greater than it was for the prior year. 
 13.22     Sec. 36.  [ABATEMENT LEVY.] 
 13.23     Notwithstanding Minnesota Statutes, section 124.912, 
 13.24  subdivision 9, a school district's levy as otherwise authorized 
 13.25  under that subdivision for the 1998-1999 school year shall be no 
 13.26  greater than it was for the prior year.  To the extent the 
 13.27  portion of the resulting levy otherwise authorized under 
 13.28  Minnesota Statutes, section 124.912, subdivision 9, paragraph 
 13.29  (a), clause (1), is less than the school district would have 
 13.30  been authorized to levy under that clause, the district shall 
 13.31  receive additional aid equal to the difference.  The remaining 
 13.32  portion of the resulting levy that is less than the school 
 13.33  district would have been authorized to levy under the remainder 
 13.34  of Minnesota Statutes, section 124.912, subdivision 9, may be 
 13.35  levied over a four-year period notwithstanding the three-year 
 13.36  limitation of Minnesota Statutes, section 124.912, subdivision 
 14.1   9, paragraph (b). 
 14.2      Sec. 37.  [OPERATING DEBT LEVIES.] 
 14.3      Notwithstanding Minnesota Statutes, section 122.531, 
 14.4   subdivision 4a; 124.914; or Laws 1992, chapter 499, article 7, 
 14.5   sections 13 and 14, a school district's levy as otherwise 
 14.6   authorized under those sections for the 1998-1999 school year 
 14.7   shall be no greater than it was for the prior year.  To the 
 14.8   extent this prevents a district from amortizing its 
 14.9   reorganization operating debt as defined in Minnesota Statutes, 
 14.10  section 121.915, clause (1), in five years, the district shall 
 14.11  be permitted to levy the remainder in a subsequent year. 
 14.12     Sec. 38.  [HEALTH INSURANCE BENEFITS LEVY.] 
 14.13     Notwithstanding Minnesota Statutes, section 124.916, 
 14.14  subdivision 1, or Laws 1993, chapter 224, article 8, section 18, 
 14.15  a school district's levy for retired employees' health insurance 
 14.16  as otherwise authorized under those provisions of law for the 
 14.17  taxes payable in 1998 shall be no greater than it was for the 
 14.18  prior year. 
 14.19     Sec. 39.  [RETIREMENT LEVY.] 
 14.20     Notwithstanding Minnesota Statutes, section 124.916, 
 14.21  subdivision 3, a school district's levy as otherwise authorized 
 14.22  under that subdivision for taxes payable in 1998 shall be no 
 14.23  greater than it was for the prior year.  If the resulting levy 
 14.24  is less than the school district would have been authorized to 
 14.25  levy under that subdivision, the school district shall receive 
 14.26  additional aid equal to the difference. 
 14.27     Sec. 40.  [MINNEAPOLIS HEALTH INSURANCE SUBSIDY.] 
 14.28     Notwithstanding Minnesota Statutes, section 124.916, 
 14.29  subdivision 4, the levy of special school district No. 1, 
 14.30  Minneapolis, as otherwise authorized under that section for the 
 14.31  1998-1999 school year shall be no greater than it was for the 
 14.32  prior year. 
 14.33     Sec. 41.  [LEVY FOR TACONITE PAYMENT.] 
 14.34     Notwithstanding Minnesota Statutes, section 124.918, 
 14.35  subdivision 8, a school district's levy reduction as otherwise 
 14.36  authorized under that subdivision for the 1998-1999 school year 
 15.1   shall be no less than it was for the prior year.  General 
 15.2   education aid reduction for the 1998-1999 school year shall be 
 15.3   governed by Minnesota Statutes, section 124A.035, subdivision 5, 
 15.4   and the levy reduction as dictated by this section. 
 15.5      Sec. 42.  [EQUALIZED DEBT SERVICE LEVY.] 
 15.6      Notwithstanding Minnesota Statutes, section 124.95, 
 15.7   subdivision 4, a school district's levy as otherwise authorized 
 15.8   under that subdivision for the 1998-1999 school year taxes 
 15.9   payable in 1998 shall be based on the actual pupil units in the 
 15.10  district for the 1993-1994 school year and the 1994 adjusted net 
 15.11  tax of the district. 
 15.12     Sec. 43.  [UNEQUALIZED REFERENDUM LEVY.] 
 15.13     Notwithstanding Minnesota Statutes, section 124A.03, 
 15.14  subdivision 1i, a school district's unequalized referendum levy 
 15.15  for the 1998-1999 school year shall be no greater than it was 
 15.16  for the prior year.  If the resulting levy is less than the 
 15.17  school district would have levied under that subdivision, the 
 15.18  school district shall receive additional aid equal to the 
 15.19  difference. 
 15.20     Sec. 44.  [REFERENDUM LEVY.] 
 15.21     (a) Except as provided in paragraph (b), notwithstanding 
 15.22  Minnesota Statutes, section 124A.03, subdivision 2 or 2b, no 
 15.23  referendum conducted after August 1, 1997, under those 
 15.24  provisions may authorize a levy first becoming payable in 1998.  
 15.25     (b) A referendum may authorize such a levy if the 
 15.26  referendum provides for continuation of a referendum levy that 
 15.27  terminates beginning with taxes payable in 1998.  If the 
 15.28  terminated levy had been based on net tax capacity, the 
 15.29  referendum relating to taxes payable in 1998 must be based on 
 15.30  net tax capacity and the ballot shall state the estimated 
 15.31  referendum tax rate based on net tax capacity for taxes levied 
 15.32  in 1997, notwithstanding Minnesota Statutes, section 124A.03, 
 15.33  subdivisions 2 and 2a.  To the extent the referendum relates to 
 15.34  taxes payable in 1999 and subsequent years, the levies for those 
 15.35  years are subject to Minnesota Statutes, sections 124A.03, 
 15.36  subdivision 2a, and 124A.0311, subdivision 3, and the ballot 
 16.1   shall also state the estimated referendum tax rate as a 
 16.2   percentage of market value for taxes levied in 1999. 
 16.3      Sec. 45.  [REFERENDUM AUTHORITY; CONVERSION.] 
 16.4      Notwithstanding Minnesota Statutes, section 124A.0311, 
 16.5   subdivisions 2 and 3, no school district may convert its 
 16.6   referendum authority currently authorized to be levied against 
 16.7   net tax capacity to referendum authority authorized to be levied 
 16.8   against referendum market value effective for taxes payable in 
 16.9   1998. 
 16.10     Sec. 46.  [SUPPLEMENTAL AND TRANSITION LEVIES.] 
 16.11     Notwithstanding Minnesota Statutes, section 124A.22, 
 16.12  subdivisions 8a and 13a, a school district's supplemental levy 
 16.13  or transition levy adjustment for the 1998-1999 school year 
 16.14  shall be no greater than it was for the prior year. 
 16.15     Sec. 47.  [GENERAL EDUCATION LEVY; OFF-FORMULA DISTRICTS.] 
 16.16     Notwithstanding Minnesota Statutes, section 124A.23, 
 16.17  subdivision 3, an off-formula school district's levy for general 
 16.18  education for the 1998-1999 school year shall be no greater than 
 16.19  it was for the prior year.  An off-formula school district's aid 
 16.20  reduction for general education levy equity under Minnesota 
 16.21  Statutes, section 124A.24, shall be computed using the levy 
 16.22  computed under this section.  If an off-formula district 
 16.23  payments pursuant to Minnesota Statutes, section 124A.035, 
 16.24  subdivision 4, are reduced from that received in the prior 
 16.25  school year, the district shall receive additional aid equal to 
 16.26  the difference. 
 16.27     Sec. 48.  [LEVY REDUCTION.] 
 16.28     Notwithstanding Minnesota Statutes, section 124A.26, 
 16.29  subdivision 2, a district's levy reduction for the 1998-1999 
 16.30  school year under that subdivision shall be no less than it was 
 16.31  in the prior year.  To the extent that the resulting reduction 
 16.32  is greater than the school district would have otherwise 
 16.33  received under that subdivision, the school district shall 
 16.34  receive additional aid equal to the difference. 
 16.35     Sec. 49.  [STAFF DEVELOPMENT LEVY.] 
 16.36     Notwithstanding Minnesota Statutes, section 124A.292, 
 17.1   subdivision 3, a school district's levy for staff development 
 17.2   for the 1998-1999 school year shall be no greater than it was 
 17.3   for the prior year. 
 17.4      Sec. 50.  [LEVY ADJUSTMENT.] 
 17.5      Notwithstanding any other law to the contrary, any 
 17.6   adjustment of a school district's levy authority other than for 
 17.7   debt redemption fund excesses under Minnesota Statutes, section 
 17.8   475.61, for taxes payable in 1998 shall not result in a levy 
 17.9   that is greater than it was in 1997.  If the resulting levy 
 17.10  adjustments reduce the district's revenues below that which the 
 17.11  district would have otherwise received in the absence of this 
 17.12  section, the district will receive additional aid equal to the 
 17.13  difference. 
 17.14     Sec. 51.  [OTHER LEVY AUTHORITY.] 
 17.15     A school district's levy under any special law or any 
 17.16  authority other than that contained in Minnesota Statutes, 
 17.17  chapters 124, 124A, and 136D, shall not be greater for taxes 
 17.18  payable in 1998 than it was for taxes payable in 1997 except for 
 17.19  any debt service on obligations, certificates of indebtedness, 
 17.20  capital notes, or other debt instruments issued prior to April 
 17.21  30, 1997, or to make payments on installment purchase contracts 
 17.22  or lease purchase agreements entered into prior to April 30, 
 17.23  1997. 
 17.24     Sec. 52.  [BENEFIT RATIO FOR RURAL SERVICE DISTRICTS.] 
 17.25     Notwithstanding Minnesota Statutes, section 272.67, 
 17.26  subdivision 6, the benefit ratio used for apportioning levies to 
 17.27  a rural service district for taxes payable in 1998 shall not be 
 17.28  greater than that in effect for taxes payable in 1997. 
 17.29     Sec. 53.  [PROHIBITION AGAINST INCURRING NEW DEBT.] 
 17.30     Subdivision 1.  [GENERALLY.] (a) After July 31, 1997, no 
 17.31  municipality as defined in Minnesota Statutes, section 475.51, 
 17.32  or any special taxing district as defined under Minnesota 
 17.33  Statutes, section 275.066, may sell obligations, certificates of 
 17.34  indebtedness, or capital notes under Minnesota Statutes, chapter 
 17.35  475, section 412.301, or any other law authorizing obligations, 
 17.36  certificates of indebtedness, capital notes, or other debt 
 18.1   instruments or enter into installment purchase contracts or 
 18.2   lease purchase agreements under Minnesota Statutes, section 
 18.3   465.71, or any other law authorizing installment purchase 
 18.4   contracts or lease purchase agreements if issuing those debt 
 18.5   instruments or entering into those contracts would require a 
 18.6   levy first becoming due in 1998.  This restriction does not 
 18.7   apply to (1) refunding bonds sold to refund bonds originally 
 18.8   sold before August 1, 1997, or (2) obligations for which the 
 18.9   amount of the levy first becoming due in 1998 would not exceed 
 18.10  the amount by which the municipality's total debt service levy 
 18.11  for taxes payable in 1998 prior to issuance of those obligations 
 18.12  is less than the municipality's total debt service levy for 
 18.13  taxes payable in 1997.  As used in clause (2), "obligations" 
 18.14  includes certificates of indebtedness, capital notes, or other 
 18.15  debt instruments or installment purchase contracts or lease 
 18.16  purchase agreements.  
 18.17     (b) For purposes of this section, bonds will be deemed to 
 18.18  have been sold before August 1, 1997, if: 
 18.19     (1) an agreement has been entered into between the 
 18.20  municipality and a purchaser or underwriter for the sale of the 
 18.21  bonds by that date; 
 18.22     (2) the issuing municipality is a party to contract or 
 18.23  letter of understanding entered into before August 1, 1997, with 
 18.24  the federal government or the state government that requires the 
 18.25  municipality to pay for a project, and the project will be 
 18.26  funded with the proceeds of the bonds; or 
 18.27     (3) the proceeds of the bonds will be used to fund a 
 18.28  project or acquisition with respect to which the municipality 
 18.29  has entered into a contract with a builder or supplier before 
 18.30  August 1, 1997.  Debt service payments due on bonds described in 
 18.31  this paragraph during calendar year 1998 will be paid by the 
 18.32  state.  The amount of those payments must be repaid by the 
 18.33  municipality to the state in three equal annual installments 
 18.34  beginning in 1999.  No interest will be due on those payments if 
 18.35  timely paid by June 15 of the year due. 
 18.36     Subd. 2.  [EXCEPTION.] Notwithstanding subdivision 1, 
 19.1   certificates of indebtedness, capital notes, installment 
 19.2   purchase contracts, lease purchase agreements or any other debt 
 19.3   instruments, and the debt service levies for the obligations 
 19.4   shall, for purposes of this act, be treated as if sold prior to 
 19.5   August 1, 1997, if: 
 19.6      (a) The municipality or other governmental authority has 
 19.7   satisfied any one of the following conditions prior to August 1, 
 19.8   1997: 
 19.9      (1) it has adopted a resolution or ordinance authorizing 
 19.10  the issuance of the obligations; 
 19.11     (2) it has declared official intent to issue the 
 19.12  obligations under federal tax laws and regulations; or 
 19.13     (3) it has entered into a binding agreement to design or 
 19.14  construct a project or acquire property to be financed with the 
 19.15  obligations; and 
 19.16     (b) The municipality makes a finding at the time of the 
 19.17  sale of the bonds that no levy will be required for taxes 
 19.18  payable in 1998 to pay the debt service on the obligations 
 19.19  because sufficient funds are available from nonproperty tax 
 19.20  sources to pay the debt service. 
 19.21     Sec. 54.  [ASSESSMENT LIMITATIONS.] 
 19.22     Subdivision 1.  [1997 ASSESSMENT.] Notwithstanding 
 19.23  Minnesota Statutes, section 273.11, or any other law to the 
 19.24  contrary, the value of property for the 1997 assessment shall 
 19.25  not exceed the lesser of its limited market value determined for 
 19.26  the 1996 assessment pursuant to Minnesota Statutes, section 
 19.27  273.11, subdivision 1a, or its market value as otherwise 
 19.28  determined for the 1996 assessment provided that any value 
 19.29  attributable to new construction or improvements to the extent 
 19.30  it does not qualify for deferral under Minnesota Statutes, 
 19.31  section 273.11, subdivision 16, shall be added to the prior 
 19.32  year's value used to determine its tax capacity.  The assessment 
 19.33  of previously tax exempt property that loses its tax exempt 
 19.34  status pursuant to Minnesota Statutes, section 272.02, 
 19.35  subdivision 4, is not limited in any way under this subdivision. 
 19.36     Subd. 2.  [1998 ASSESSMENT.] The provisions of Minnesota 
 20.1   Statutes, section 273.11, subdivision 1a, shall govern in 
 20.2   determining the value of property classified as agricultural 
 20.3   homestead or nonhomestead, residential homestead or 
 20.4   nonhomestead, or noncommercial seasonal residential for the 1998 
 20.5   assessment provided that "five percent" shall be substituted for 
 20.6   "ten percent" in that section. 
 20.7      Sec. 55.  [LEVY LIMITATION TAXES PAYABLE IN 1998.] 
 20.8      Subdivision 1.  [TAXES PAYABLE IN 1998 PROPOSED LEVY.] 
 20.9   Notwithstanding any other law to the contrary, for purposes of 
 20.10  the certification required by Minnesota Statutes, section 
 20.11  275.065, subdivision 1, in 1997, no taxing authority other than 
 20.12  a school district shall certify to the county auditor a proposed 
 20.13  property tax levy or in the case of a township, a final property 
 20.14  tax levy, greater than the amount certified to the county 
 20.15  auditor pursuant to Minnesota Statutes, section 275.07, 
 20.16  subdivision 1, in the prior year except as provided in 
 20.17  subdivisions 3, 4, and 5. 
 20.18     Subd. 2.  [TAXES PAYABLE IN 1998 FINAL LEVY.] 
 20.19  Notwithstanding any other law to the contrary, for purposes of 
 20.20  the certification required by Minnesota Statutes, section 
 20.21  275.07, subdivision 1, in 1997, no taxing authority other than a 
 20.22  school district shall certify to the county auditor a property 
 20.23  tax levy greater than the amount certified to the county auditor 
 20.24  pursuant to Minnesota Statutes, section 275.07, subdivision 1, 
 20.25  in the prior year except as provided in subdivisions 4 to 6. 
 20.26     Subd. 3.  [SCHOOL DISTRICTS.] School district levies shall 
 20.27  be governed by sections 8 to 51. 
 20.28     Subd. 4.  [DEBT SERVICE EXCEPTION.] If a payable 1998 levy 
 20.29  for debt service on obligations, certificates of indebtedness, 
 20.30  capital notes, or other debt instruments sold prior to August 1, 
 20.31  1997, or to make payments on installment purchase contracts or 
 20.32  lease purchase agreements entered into prior to August 1, 1997, 
 20.33  exceeds the levy a taxing authority certified pursuant to 
 20.34  Minnesota Statutes, section 275.07, subdivision 1, for taxes 
 20.35  payable in 1997 for the same purpose, the excess may be levied 
 20.36  notwithstanding the limitations of subdivisions 1 and 2. 
 21.1      Subd. 5.  [ANNEXATION EXCEPTION.] The city tax rate for 
 21.2   taxes payable in 1998 on any property annexed under Minnesota 
 21.3   Statutes, chapter 414, may not be increased over the city or 
 21.4   township tax rate in effect on the property in 1997, 
 21.5   notwithstanding any law, municipal board order, or ordinance to 
 21.6   the contrary.  The limit on the annexing city's levy under 
 21.7   subdivisions 1 and 2 may be increased in excess of that limit by 
 21.8   an amount equal to the net tax capacity of the property annexed 
 21.9   times the city or township tax rate in effect on that property 
 21.10  for taxes payable in 1997.  The levy limit of the city or 
 21.11  township from which the property was annexed shall be reduced by 
 21.12  the same amount. 
 21.13     Subd. 6.  [INCREASE AUTHORIZED.] Notwithstanding the 
 21.14  limitation of subdivision 1, a taxing authority other than a 
 21.15  school district may increase its levy for taxes payable in 1998 
 21.16  over that certified to the county pursuant to Minnesota 
 21.17  Statutes, section 275.07, subdivision 1, in the prior year by an 
 21.18  amount equal to the taxing authority's net tax capacity pursuant 
 21.19  to section 54, subdivision 1, times its tax rate for taxes 
 21.20  payable in 1997 less the taxing authority's levy under 
 21.21  subdivision 1. 
 21.22     Sec. 56.  [FREEZE ON LOCAL MATCH REQUIREMENTS.] 
 21.23     Notwithstanding any other law to the contrary, the local 
 21.24  funding or local match required from any city, town, or county 
 21.25  for any state grant or program shall not be increased for 
 21.26  calendar year 1998 above the dollar amount of the local funding 
 21.27  or local match required for the same grant or program in 1997, 
 21.28  regardless of the level of state funding provided; and any new 
 21.29  local match or local funding requirements for new or amended 
 21.30  state grants or programs shall not be effective until calendar 
 21.31  year 1999.  Nothing in this section shall affect the eligibility 
 21.32  of a city, town, or county for the receipt of state grants or 
 21.33  program funds in 1998 or reduce the amount of state funding a 
 21.34  city, town, or county would otherwise receive in 1998 if the 
 21.35  local match requirements of the state grant or program were met 
 21.36  in 1997. 
 22.1      Sec. 57.  [SUSPENSION OF SALARY AND BUDGET APPEAL 
 22.2   AUTHORIZATION.] 
 22.3      After March 11, 1997, no county sheriff may exercise the 
 22.4   authority granted under Minnesota Statutes, section 387.20, 
 22.5   subdivision 7, and no county attorney may exercise the authority 
 22.6   granted under Minnesota Statutes, section 388.18, subdivision 6, 
 22.7   to the extent that the salary or budget increase sought in the 
 22.8   appeal would result in an increase in county expenditures in 
 22.9   calendar year 1998. 
 22.10     Sec. 58.  [SUSPENSION OF PUBLICATION AND HEARING 
 22.11  REQUIREMENTS.] 
 22.12     A local taxing authority is not required to comply with the 
 22.13  public advertisement notice of Minnesota Statutes, section 
 22.14  275.065, subdivision 5a, or the public hearing requirement of 
 22.15  Minnesota Statutes, section 275.065, subdivision 6, with respect 
 22.16  to taxes levied in 1997, payable in 1998, only. 
 22.17     Sec. 59.  [LEVY LIMITATION TAXES PAYABLE IN 1999.] 
 22.18     Subdivision 1.  [DEFINITION.] The "percentage increase in 
 22.19  the implicit price deflator" means the percentage change in the 
 22.20  implicit price deflator for state and local governments' 
 22.21  purchases of goods and services as calculated in Minnesota 
 22.22  Statutes, section 477A.03, subdivision 3, provided that the 2.5 
 22.23  percent and five percent limits do not apply and that the 
 22.24  increase cannot be less than zero percent. 
 22.25     Subd. 2.  [TAXES PAYABLE IN 1999 PROPOSED LEVY.] 
 22.26  Notwithstanding any other law to the contrary, for purposes of 
 22.27  the certification required by Minnesota Statutes, section 
 22.28  275.065, subdivision 1, in 1998, no taxing authority other than 
 22.29  a school district or a joint vocational technical district shall 
 22.30  certify to the county auditor a proposed property tax levy or in 
 22.31  the case of a township, a final property tax levy, that is 
 22.32  greater than the product of: 
 22.33     (1) the sum of one plus the lesser of (i) three percent, or 
 22.34  (ii) the percentage increase in the implicit price deflator; and 
 22.35     (2) the amount certified to the county auditor pursuant to 
 22.36  Minnesota Statutes, section 275.07, subdivision 1, in the prior 
 23.1   year, except as provided in subdivisions 4 and 5. 
 23.2      Subd. 3.  [TAXES PAYABLE IN 1999 FINAL LEVY.] 
 23.3   Notwithstanding any other law to the contrary, for purposes of 
 23.4   the certification required by Minnesota Statutes, section 
 23.5   275.07, subdivision 1, in 1998, no taxing authority other than a 
 23.6   school district or a joint vocational technical district shall 
 23.7   certify to the county auditor a property tax levy that is 
 23.8   greater than the product of: 
 23.9      (1) the sum of one plus the lesser of (i) three percent, or 
 23.10  (ii) the percentage increase in the implicit price deflator; and 
 23.11     (2) the amount certified to the county auditor pursuant to 
 23.12  Minnesota Statutes, section 275.07, subdivision 1, in the prior 
 23.13  year, except as provided in subdivisions 4, 5, and 6. 
 23.14     Subd. 4.  [REFERENDA.] (a) A taxing authority other than a 
 23.15  school district or an education district may increase its levy 
 23.16  above the limits provided in subdivisions 2 and 3, by the amount 
 23.17  approved by the voters residing in the jurisdiction of the 
 23.18  authority at a referendum called for the purpose.  The 
 23.19  referendum may be called by the governing body or shall be 
 23.20  called by the governing body upon written petition of qualified 
 23.21  voters of the jurisdiction.  The referendum shall be conducted 
 23.22  during the calendar year before the increased levy authority, if 
 23.23  approved, first becomes payable.  Only one election to approve 
 23.24  an increase may be held in a calendar year.  The referendum must 
 23.25  be held on the first Tuesday after the first Monday in 
 23.26  November.  The ballot shall state the maximum amount of the 
 23.27  increased levy and the estimated referendum tax rate as a 
 23.28  percentage of taxable net tax capacity in the year it is to be 
 23.29  levied.  The ballot may contain a textual portion with the 
 23.30  information required in this subdivision and a question stating 
 23.31  substantially the following: 
 23.32     "Shall the increase in the levy proposed by (petition to) 
 23.33  the governing body of ........., be approved?" 
 23.34     (b) The governing body shall prepare and deliver by first 
 23.35  class mail at least 15 days but no more than 30 days prior to 
 23.36  the day of the referendum to each taxpayer a notice of the 
 24.1   referendum and the proposed levy increase.  The governing body 
 24.2   need not mail more than one notice to any taxpayer.  For the 
 24.3   purpose of giving mailed notice under this subdivision, owners 
 24.4   shall be those shown to be owners on the records of the county 
 24.5   auditor or, in any county where tax statements are mailed by the 
 24.6   county treasurer, on the records of the county treasurer.  Every 
 24.7   property owner whose name does not appear on the records of the 
 24.8   county auditor or the county treasurer shall be deemed to have 
 24.9   waived this mailed notice unless the owner has requested in 
 24.10  writing that the county auditor or county treasurer, as the case 
 24.11  may be, include the name on the records for this purpose.  The 
 24.12  notice must project the anticipated amount of tax increase in 
 24.13  annual dollars and annual percentage for typical residential 
 24.14  homesteads, agricultural homesteads, apartments, and 
 24.15  commercial-industrial property within the jurisdiction of the 
 24.16  taxing authority. 
 24.17     The notice must include the following statement:  "Passage 
 24.18  of this referendum will result in an increase in your property 
 24.19  taxes." 
 24.20     (c) A petition authorized by paragraph (a) is effective if 
 24.21  signed by a number of qualified voters in excess of 15 percent 
 24.22  of the registered voters of the jurisdiction of the taxing 
 24.23  authority on the day the petition is filed with the governing 
 24.24  body.  A referendum invoked by petition shall be held on the 
 24.25  date specified in paragraph (a). 
 24.26     (d) The approval of 50 percent plus one of those voting on 
 24.27  the question is required to pass a referendum authorized by this 
 24.28  subdivision. 
 24.29     (e) A bond authorization under Minnesota Statutes, section 
 24.30  475.59, shall be deemed to meet the requirements of this 
 24.31  subdivision provided the ballot includes the information 
 24.32  required in paragraph (a) and the notice required in paragraph 
 24.33  (b) is distributed. 
 24.34     Subd. 5.  [DEBT SERVICE EXCEPTION.] If a payable 1999 levy 
 24.35  for debt service on obligations, certificates of indebtedness, 
 24.36  capital notes, or other debt instruments sold prior to August 1, 
 25.1   1997, or to make payments on installment purchase contracts or 
 25.2   lease purchase agreements entered into prior to August 1, 1997, 
 25.3   exceeds the levy a taxing authority certified pursuant to 
 25.4   Minnesota Statutes, section 275.07, subdivision 1, for taxes 
 25.5   payable in 1998 for the same purpose, or a payable 1999 levy for 
 25.6   general obligations exceeds any payable 1999 levy required as a 
 25.7   condition for the issuance of such general obligations, the 
 25.8   excess may be levied notwithstanding the limitations of 
 25.9   subdivisions 2 and 3. 
 25.10     Subd. 6.  [LEVY OF TOWN BEING MERGED INTO CITY.] If a town 
 25.11  has entered into an agreement to merge with a home rule charter 
 25.12  or statutory city, and the merger has been approved by a 
 25.13  referendum, the town's levy for taxes payable in 1999 shall not 
 25.14  exceed the greater of (1) the amount determined under 
 25.15  subdivisions 1 to 5, or (2) the amount established as a term of 
 25.16  the merger agreement with the city. 
 25.17     Sec. 60.  [FISCAL DISPARITIES FREEZE.] 
 25.18     Notwithstanding Minnesota Statutes, section 473F.08, 
 25.19  subdivision 2, clause (a), the amount to be deducted from a 
 25.20  governmental unit's net tax capacity for taxes payable in 1998 
 25.21  under that clause shall equal the amount deducted for taxes 
 25.22  payable in 1997.  Notwithstanding Minnesota Statutes, section 
 25.23  473F.08, subdivision 2, clause (b), the amount to be added to a 
 25.24  governmental unit's net tax capacity for taxes payable in 1998 
 25.25  under that clause shall equal the same amount added for taxes 
 25.26  payable in 1997.  Notwithstanding Minnesota Statutes, section 
 25.27  473F.08, subdivision 3, the areawide portion of the levy for 
 25.28  each governmental unit shall be determined using the local tax 
 25.29  rate for the 1995 levy year.  Notwithstanding Minnesota 
 25.30  Statutes, section 473F.08, subdivision 6, the portion of 
 25.31  commercial-industrial property within a municipality subject to 
 25.32  the areawide tax rate shall be computed using the amount 
 25.33  determined under Minnesota Statutes, sections 473F.06 and 
 25.34  473F.07, for taxes payable in 1997. 
 25.35     Sec. 61.  [TAX RATE FREEZE.] 
 25.36     Subdivision 1.  [REDUCTION OF LEVY; PAYMENT.] If in the 
 26.1   course of determining local tax rates for taxes payable in 1998 
 26.2   after reductions for disparity reduction aid under Minnesota 
 26.3   Statutes, section 275.08, subdivisions 1c and 1d, the county 
 26.4   auditor finds the local tax rate exceeds that in effect for 
 26.5   taxes payable in 1997, the county auditor shall reduce the local 
 26.6   government's levy so the local tax rate does not exceed that in 
 26.7   effect for taxes payable in 1997.  The difference between the 
 26.8   levy as originally certified by the local government and the 
 26.9   reduced levy shall be certified to the commissioner of revenue 
 26.10  at the time the abstracts are submitted under Minnesota 
 26.11  Statutes, section 275.29.  That amount shall be paid to the 
 26.12  local government on or before August 31. 
 26.13     Subd. 2.  [APPROPRIATION.] An amount sufficient to pay the 
 26.14  aid provided under this section is appropriated from the general 
 26.15  fund to the commissioner of revenue for payment to counties, 
 26.16  cities, townships, and special taxing districts.  An amount 
 26.17  sufficient to pay the aid provided under this section is 
 26.18  appropriated from the general fund to the commissioner of 
 26.19  children, families, and learning for payment to school districts.
 26.20     Sec. 62.  [PENSION LIABILITIES.] 
 26.21     Notwithstanding any other law or charter provision to the 
 26.22  contrary, no levy for taxes payable in 1998 for a local police 
 26.23  and fire relief association for the purpose of amortizing an 
 26.24  unfunded pension liability may exceed the levy for that purpose 
 26.25  for taxes payable in 1997. 
 26.26     Sec. 63.  [DUTIES OF TOWNSHIP BOARD OF SUPERVISORS.] 
 26.27     Notwithstanding Minnesota Statutes, section 365.10, in 1997 
 26.28  the township board of supervisors shall adjust the levy and in 
 26.29  1998 the township board of supervisors may adjust the 
 26.30  expenditures of a township below the level authorized by the 
 26.31  electors to adjust for any reduction in the previously 
 26.32  authorized levy of the township pursuant to section 55. 
 26.33     Sec. 64.  [PROPERTY TAX AND EDUCATION AIDS REFORM.] 
 26.34     Subdivision 1.  [RECOMMENDED PROGRAM.] The legislative 
 26.35  commission on planning and fiscal policy shall prepare and 
 26.36  recommend to the legislature a property tax reform and education 
 27.1   aids reform program that includes: 
 27.2      (1) a property tax classification and class rate system; 
 27.3      (2) elementary and secondary education aids and levies; and 
 27.4      (3) aids to local government. 
 27.5      Subd. 2.  [STANDARDS.] (a) The recommended program must 
 27.6   provide for accountability, equity, revenue adequacy, and 
 27.7   efficiency as provided in paragraphs (b) to (e). 
 27.8      (b) The recommended program must provide accountability by 
 27.9   being understandable to the taxpayer, by linking the costs of 
 27.10  services to the taxes paid for those services, and by 
 27.11  correlating the responsibility for raising revenues with the 
 27.12  ability to make spending decisions.  
 27.13     (c) The recommended program must provide equity by 
 27.14  minimizing large, short-term shifts in tax burdens, and by 
 27.15  ensuring that tax burdens and aids are progressive and related 
 27.16  to the ability to pay or raise revenue.  
 27.17     (d) The recommended program must provide for adequate 
 27.18  revenue by controlling costs and the need for increased revenue, 
 27.19  minimizing reductions or shifts in revenues available to local 
 27.20  governments to provide needed services, and directing aids to 
 27.21  meet needs and fund services based on established funding 
 27.22  priorities.  
 27.23     (e) The program must promote efficiency by providing stable 
 27.24  predictable property taxes and local government revenues that 
 27.25  are competitive with those of other states and areas so that 
 27.26  property taxes and aids have minimal impact on the economic 
 27.27  decisions of taxpayers.  
 27.28     Subd. 3.  [TASK FORCE.] The commission may designate a task 
 27.29  force to advise the commission in carrying out its duties under 
 27.30  this section.  The task force may include legislators, agency 
 27.31  and legislative staff, state and local governmental officials, 
 27.32  educators, and taxpayers and members of the public.  The task 
 27.33  force expires on January 1, 1999. 
 27.34     Subd. 4.  [SERVICES.] The commission may enter into 
 27.35  contracts for the professional and other services necessary to 
 27.36  carry out its duties under this section. 
 28.1      Subd. 5.  [REPORT.] The commission shall report its 
 28.2   recommendations to the legislature by January 1, 1999.  The 
 28.3   report shall include proposed legislation to implement the 
 28.4   recommendations of the commission. 
 28.5      Sec. 65.  [SAVINGS CLAUSE.] 
 28.6      Notwithstanding the repealers in section 66 or any other 
 28.7   provision in this act to the contrary, nothing in this act 
 28.8   constitutes an impairment of any obligations, certificates of 
 28.9   indebtedness, capital notes, or other debt instruments, 
 28.10  including installment purchase contracts or lease purchase 
 28.11  agreements, issued before the date of final enactment of this 
 28.12  act, by a municipality as defined in Minnesota Statutes, section 
 28.13  469.174, subdivision 6, or a special taxing district as defined 
 28.14  in Minnesota Statutes, section 275.066.  
 28.15     Sec. 66.  [REPEALER.] 
 28.16     Subdivision 1.  Minnesota Statutes 1996, sections 124.01, 
 28.17  subdivision 1; 124.06; 124.07; 124.76; 124.82; 124.829; 124.83; 
 28.18  124.84; 124.85; 124.86; 124.90; 124.91, subdivisions 1, 2, 4, 5, 
 28.19  6, and 7; 124.912, subdivisions 1, 2, 3, 6, 7, and 9; 124.914; 
 28.20  124.916; 124.918; 124.95; 124.961; 124.97; 124A.02, subdivisions 
 28.21  16, 23, and 24; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 
 28.22  1h, and 1i; 124A.0311; 124A.032; 124A.04; 124A.22, subdivisions 
 28.23  1, 2, 3, 4, 4a, 4b, 6, 6a, 8, 8a, 10, 11, 12, 13, 13a, 13b, 13c, 
 28.24  13d, 13e, and 13f; 124A.23; 124A.24; 124A.28; and 124A.29, are 
 28.25  repealed. 
 28.26     Subd. 2.  Minnesota Statutes 1996, sections 273.13, 
 28.27  subdivisions 21a, 21b, 22, 23, 24, and 25; 273.135, subdivisions 
 28.28  1, 2, 3, and 5; 273.136; 273.1391, subdivisions 1, 2, 3, 4, and 
 28.29  5; 473F.001; 473F.01; 473F.02, subdivisions 1, 3, 4, 5, 6, and 
 28.30  21; 473F.03; 473F.05; 473F.06; 473F.07; 473F.08, subdivisions 1, 
 28.31  2, 3, 3a, 3b, 4, 5, 5a, 6, 7a, 8a, and 10; 473F.09; 473F.10; 
 28.32  473F.11; 473F.13; 477A.011, subdivisions 1, 1a, 1b, 2a, 3, 19, 
 28.33  20, 21, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, and 37; 
 28.34  477A.0121; 477A.0122; 477A.013, subdivisions 1, 8, and 9; 
 28.35  477A.0132; 477A.014, subdivisions 1, 2, 3, 4, and 5; 477A.015; 
 28.36  477A.016; 477A.017; 477A.03, subdivision 3; 477A.11; 477A.12; 
 29.1   477A.13; 477A.14; and 477A.15, are repealed. 
 29.2      Subd. 3.  Minnesota Statutes 1996, section 119B.11, 
 29.3   subdivision 4, is repealed. 
 29.4      Sec. 67.  [EFFECTIVE DATE.] 
 29.5      Sections 1 to 4 are effective July 1, 1997.  Section 66, 
 29.6   subdivision 2, is effective for taxes payable in 2000.  Section 
 29.7   66, subdivision 1, is effective for the 2000-2001 school year, 
 29.8   provided that if the legislature does not pass and the governor 
 29.9   does not approve legislation by the conclusion of the 1998 
 29.10  session that states in its body that it is replacing the 
 29.11  provisions of the repealed chapters and sections in section 66, 
 29.12  the repealed chapters and sections are reenacted.