Minnesota Legislature
SF 1570
2nd Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
Current Version - 2nd Engrossment
1.1 A bill for an act 1.2 relating to taxes; freezing property tax values, 1.3 levies, and rates for taxes payable in 1996; limiting 1.4 increases in property tax values, levies, and rates 1.5 for taxes payable in 1997; appropriating money; 1.6 repealing Minnesota Statutes 1994, sections 124.01; 1.7 124.05; 124.06; 124.07; 124.76; 124.82; 124.829; 1.8 124.83; 124.84; 124.85; 124.86; 124.90; 124.91; 1.9 124.912; 124.914; 124.916; 124.918; 124.95; 124.961; 1.10 124.962; 124.97; 124A.02, subdivisions 16, 23, and 24; 1.11 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1.12 1i; 124A.0311; 124A.032; 124A.04; 124A.22, 1.13 subdivisions 1, 2, 3, 4, 4a, 4b, 6, 6a, 8, and 9; 1.14 124A.23; 124A.24; 124A.26, subdivisions 1, 2, and 3; 1.15 124A.27; 124A.28; 124A.29, subdivision 2; 273.13; 1.16 273.135; 273.136; 273.1391; 473F.001; 473F.01; 1.17 473F.02; 473F.03; 473F.05; 473F.06; 473F.07; 473F.08; 1.18 473F.09; 473F.10; 473F.11; 473F.13; 477A.011; 1.19 477A.012; 477A.0121; 477A.0122; 477A.013; 477A.0132; 1.20 477A.014; 477A.015; 477A.016; 477A.017; 477A.03; 1.21 477A.11; 477A.12; 477A.13; 477A.14; and 477A.15; Laws 1.22 1991, chapter 265, article 7, section 35. 1.23 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.24 Section 1. [EDUCATION FINANCE FOR THE 1996-1997 SCHOOL 1.25 YEAR.] 1.26 Subdivision 1. [ADJUSTED TAX CAPACITY FOR SCHOOL YEAR 1.27 1996-1997.] Notwithstanding any other law to the contrary, for 1.28 purposes of any levy authorized under Minnesota Statutes, 1.29 chapter 124, 124A, 124B, 136C, or 136D, the adjusted net tax 1.30 capacity of a school district, education district, intermediate 1.31 school district, or technical college under Minnesota Statutes, 1.32 section 124.2131 for the 1996-1997 school year shall equal the 1.33 adjusted net tax capacity used for computation of its levy 1.34 limits for the 1995-1996 school year. 2.1 Subd. 2. [LOCAL EFFORT TAX RATE AND EQUALIZING FACTOR.] 2.2 Notwithstanding any other law to the contrary, the local effort 2.3 tax rates computed under Minnesota Statutes, sections 124.226, 2.4 subdivision 1, and 124A.23, for the 1996-1997 school year shall 2.5 equal the local effort tax rates established at the time of levy 2.6 limit certification for the 1995-1996 school year. 2.7 Notwithstanding any other law to the contrary, the equalizing 2.8 factor under Minnesota Statutes, section 124A.02, for the 2.9 1996-1997 school year shall equal the equalizing factor for the 2.10 1995-1996 school year. 2.11 Subd. 3. [COMPUTATION OF PUPIL UNITS FOR LEVY LIMITS.] 2.12 Notwithstanding Minnesota Statutes, section 124.17, or any other 2.13 law to the contrary, the number of pupil units and AFDC pupil 2.14 units for a school district, education district, intermediate 2.15 school district, or technical college for use in computing the 2.16 levy limits of the district or technical college for the 2.17 1996-1997 school year shall be the pupil units and AFDC pupil 2.18 units used for the levy limit computation of the school 2.19 district, education district, intermediate school district, or 2.20 technical college for the 1995-1996 school year. For purposes 2.21 of computing the revenue entitlement of a school district under 2.22 Minnesota Statutes, chapter 124, 124A, 124B, 136C, or 136D, for 2.23 the 1996-1997 school year, the pupil units or AFDC pupil units 2.24 shall be as otherwise provided under Minnesota Statutes, section 2.25 124.17. If any section of Minnesota Statutes, chapters 124, 2.26 124A, and 124B provides that an aid entitlement is equal to the 2.27 difference between the revenue entitlement and the authorized 2.28 levy, then the aid entitlement for the 1996-1997 school year 2.29 shall equal the difference between the revenue entitlement and 2.30 authorized levies computed under this section and sections 2 to 2.31 62. If any section of Minnesota Statutes, chapters 124, 124A, 2.32 and 124B provides that the aid entitlement will be reduced if a 2.33 district fails to exercise its full levy authority and the 2.34 district failed to levy its full authority for the 1995-1996 2.35 school year, the commissioner shall assume that, absent the 2.36 provisions of this act, the district would have elected to 3.1 exercise the same portion of its levy authority for the 3.2 1996-1997 school year as it did in the prior year and determine 3.3 the district's aid under the applicable section and the prior 3.4 sentence. 3.5 Sec. 2. [TRANSITIONAL LEVIES.] 3.6 Notwithstanding Minnesota Statutes, sections 122.247, 3.7 subdivision 3, and 122.533, a school district's levy under those 3.8 sections for taxes payable in 1996 shall be no greater than it 3.9 was for the prior year. 3.10 Sec. 3. [TRANSPORTATION AID.] 3.11 For purposes of computing transportation aid under 3.12 Minnesota Statutes, section 124.225, subdivision 8a, for the 3.13 1996-1997 school year, levies shall be those computed under the 3.14 provisions of sections 1 and 4 to 12. 3.15 Sec. 4. [TRANSPORTATION LEVY.] 3.16 Notwithstanding Minnesota Statutes, section 124.226, 3.17 subdivision 2, a school district's levy for additional 3.18 transportation costs as the result of leasing a school in 3.19 another district shall be no greater for the 1996-1997 school 3.20 year than it was for the prior year. 3.21 Sec. 5. [OFF-FORMULA ADJUSTMENT.] 3.22 Notwithstanding Minnesota Statutes, section 124.226, 3.23 subdivision 3, a school district's off-formula adjustment for 3.24 taxes payable in 1996 shall be no less than that computed for 3.25 taxes payable in the prior year. If the resulting levy 3.26 reduction is greater than that which would have otherwise 3.27 occurred under Minnesota Statutes, section 124.226, subdivision 3.28 3, the district will receive additional aid equal to the 3.29 difference. 3.30 Sec. 6. [TRANSPORTATION LEVY EQUITY.] 3.31 Notwithstanding Minnesota Statutes, section 124.226, 3.32 subdivision 3a, a school district's aid reduction for 3.33 transportation levy equity for the 1996-1997 school year shall 3.34 be based on levies computed under sections 1 and 4 to 12. 3.35 Sec. 7. [NONREGULAR TRANSPORTATION COSTS LEVY.] 3.36 Notwithstanding Minnesota Statutes, section 124.226, 4.1 subdivision 4, a school district's levy for nonregular 4.2 transportation costs for the 1996-1997 school year shall be no 4.3 greater than it was for the prior year. 4.4 Sec. 8. [EXCESS TRANSPORTATION COSTS LEVY.] 4.5 Notwithstanding Minnesota Statutes, section 124.226, 4.6 subdivision 5, a school district's levy for excess 4.7 transportation costs for the 1996-1997 school year shall be no 4.8 greater than it was for the prior year. If the resulting levy 4.9 is less than the school district would have been authorized to 4.10 levy under Minnesota Statutes, section 124.226, subdivision 5, 4.11 the district shall receive additional aid equal to the 4.12 difference. 4.13 Sec. 9. [BUS PURCHASES; LEVY.] 4.14 Notwithstanding Minnesota Statutes, section 124.226, 4.15 subdivision 6, a school district's levy to eliminate a projected 4.16 deficit in its reserved fund balance for bus purchases in its 4.17 transportation fund as of June 30 of the 1996-1997 school year 4.18 shall be no greater than it was for the prior year. 4.19 Sec. 10. [CONTRACTED SERVICES LEVY.] 4.20 Notwithstanding Minnesota Statutes, section 124.226, 4.21 subdivision 7, a school district's levy for taxes payable in 4.22 1996 under that subdivision shall be no greater than it was in 4.23 the prior year. If the resulting levy is less than the school 4.24 district would have been authorized to levy under that 4.25 subdivision, the district will receive additional aid equal to 4.26 the difference. 4.27 Sec. 11. [LEVY FOR POST-SECONDARY TRANSPORTATION.] 4.28 Notwithstanding Minnesota Statutes, section 124.226, 4.29 subdivision 8, a school district levy for transportation of 4.30 secondary students enrolled in courses provided in an agreement 4.31 authorized by Minnesota Statutes, section 123.33, subdivision 7, 4.32 for school year 1996-1997 shall be no greater than it was for 4.33 the prior year. 4.34 Sec. 12. [LATE ACTIVITY BUSES LEVY.] 4.35 Notwithstanding Minnesota Statutes, section 124.226, 4.36 subdivision 9, a school district's levy for late activity buses 5.1 for the 1995-1996 school year shall be no greater than it was 5.2 for the prior year. If the resulting levy is less than the 5.3 school district would have been authorized to levy under 5.4 Minnesota Statutes, section 124.226, subdivision 9, the school 5.5 district shall receive additional aid equal to the difference. 5.6 Sec. 13. [BONDS.] 5.7 Notwithstanding Minnesota Statutes, section 124.239, after 5.8 March 30, 1995, no school district can sell bonds under that 5.9 section the debt service payments of which would require a levy 5.10 first becoming payable in 1996 or authorize a levy under 5.11 Minnesota Statutes, section 124.239, subdivision 5, clause (b), 5.12 that is not pursuant to a plan adopted prior to March 30, 1995. 5.13 This restriction shall not apply to (1) refunding bonds sold to 5.14 refund bonds originally sold before March 30, 1995, or (2) bonds 5.15 for which the amount of the levy first becoming due in 1996 5.16 would not exceed the amount by which the school district's total 5.17 levy for debt service on bonds for taxes payable in 1996 prior 5.18 to issuance of those bonds is less than the municipality's total 5.19 levy for debt service for bonds for taxes payable in 1995. 5.20 Sec. 14. [CAPITAL EXPENDITURE FACILITY LEVY.] 5.21 Notwithstanding Minnesota Statutes, sections 124.243 and 5.22 124.2442, subdivision 3, a school district's capital 5.23 expenditures facilities levy for the 1996-1997 school year shall 5.24 be no greater than it was for the prior year. 5.25 Sec. 15. [CAPITAL EXPENDITURE EQUIPMENT LEVY.] 5.26 Notwithstanding Minnesota Statutes, sections 124.244, 5.27 subdivision 2, and 124.2442, a school district's capital 5.28 expenditures equipment levy for the 1996-1997 school year shall 5.29 be no greater than it was for the prior year. 5.30 Sec. 16. [LEVY FOR ADULT BASIC EDUCATION AID.] 5.31 Notwithstanding Minnesota Statutes, section 124.2601, 5.32 school districts which did not levy for adult basic education 5.33 for taxes payable in 1995, may not levy for that purpose for 5.34 taxes payable in 1996. 5.35 Sec. 17. [EARLY CHILDHOOD FAMILY EDUCATION AND HOME 5.36 VISITATION LEVY.] 6.1 Notwithstanding Minnesota Statutes, section 124.2711, 6.2 subdivisions 2a and 5, a school district's levy for early 6.3 childhood family education and home visitation under Minnesota 6.4 Statutes, section 124.2711, subdivision 5, for school year 6.5 1996-1997 shall be no greater than it was for the prior year. 6.6 Sec. 18. [COMMUNITY EDUCATION LEVY.] 6.7 Notwithstanding Minnesota Statutes, section 124.2713, 6.8 subdivision 6, 6a, or 6b, the community education levy of a 6.9 school district for the 1996-1997 school year shall be no 6.10 greater than it was for the prior year. 6.11 Sec. 19. [LEVY FOR ADDITIONAL COMMUNITY EDUCATION 6.12 REVENUE.] 6.13 Notwithstanding Minnesota Statutes, section 124.2714, a 6.14 school district's levy under that section for school year 6.15 1996-1997 shall be no greater than it was for the prior year. 6.16 Sec. 20. [PROGRAMS FOR ADULTS WITH DISABILITIES; LEVY.] 6.17 Notwithstanding Minnesota Statutes, section 124.2715, 6.18 subdivision 3, a school district's levy for community education 6.19 programs for adults with disabilities for the 1996-1997 school 6.20 year shall be no greater than it was for the prior year. 6.21 Sec. 21. [EXTENDED DAY LEVY.] 6.22 Notwithstanding Minnesota Statutes, section 124.2716, a 6.23 school district's levy under that section for the 1996-1997 6.24 school year shall be no greater than it was for the prior year. 6.25 Sec. 22. [COOPERATION AND COMBINATION LEVY.] 6.26 Notwithstanding Minnesota Statutes, section 124.2725, 6.27 subdivisions 3 and 4, a school district's levy for cooperation 6.28 and combination for the 1996-1997 school year shall be no 6.29 greater than it was for the prior year. 6.30 Sec. 23. [EARLY RETIREMENT AND SEVERANCE LEVY.] 6.31 Notwithstanding Minnesota Statutes, section 124.2725, 6.32 subdivision 15, a school district's levy for the 1996-1997 6.33 school year for severance pay or early retirement incentives for 6.34 licensed and nonlicensed staff who retire early as the result of 6.35 combination or cooperation shall be no greater than it was for 6.36 the prior year. 7.1 Sec. 24. [CONSOLIDATION; RETIREMENT LEVY.] 7.2 Notwithstanding Minnesota Statutes, section 124.2726, 7.3 subdivision 3, a school district's levy for retirement 7.4 incentives under Minnesota Statutes, section 122.23, subdivision 7.5 20, for the 1996-1997 school year shall be no greater than it 7.6 was for the prior year. 7.7 Sec. 25. [DISTRICT COOPERATION LEVY.] 7.8 Notwithstanding Minnesota Statutes, section 124.2727, 7.9 subdivisions 6b and 9, a school district's levy for district 7.10 cooperation for the 1996-1997 school year shall be no greater 7.11 than it was for the prior year. 7.12 Sec. 26. [SPECIAL EDUCATION EQUALIZATION LEVY.] 7.13 Notwithstanding Minnesota Statutes, section 124.321, 7.14 subdivisions 3 and 5, a school district's special education 7.15 equalization levy for the 1996-1997 school year shall be no 7.16 greater than it was for the prior year. If the resulting levy 7.17 is less than the school district would have levied under 7.18 Minnesota Statutes, section 124.321, subdivisions 3 and 5, the 7.19 district shall receive additional aid equal to the difference. 7.20 Sec. 27. [ALTERNATIVE DELIVERY LEVY.] 7.21 Notwithstanding Minnesota Statutes, section 124.322, 7.22 subdivision 4, a school district's levy for alternative delivery 7.23 of specialized instructional services for the 1996-1997 school 7.24 year shall be no greater than it was for the prior year. If the 7.25 resulting levy is less than the school district would have 7.26 levied under Minnesota Statutes, section 124.322, subdivision 4, 7.27 the district shall receive additional aid equal to the 7.28 difference. 7.29 Sec. 28. [JOINT POWERS BOARD; EARLY RETIREMENT AND 7.30 SEVERANCE LEVY.] 7.31 Notwithstanding Minnesota Statutes, section 124.4945, a 7.32 school district's levy for the 1996-1997 school year for 7.33 severance pay and early retirement incentives to a teacher as 7.34 defined in Minnesota Statutes, section 125.12, subdivision 1, 7.35 who is placed on unrequested leave as the result of a 7.36 cooperative secondary facility agreement shall be no greater 8.1 than it was for the prior year. 8.2 Sec. 29. [FACILITIES DOWN PAYMENT LEVY REFERENDUM.] 8.3 Notwithstanding Minnesota Statutes, section 124.82, 8.4 subdivision 3, no facilities down payment levy referendum held 8.5 after March 27, 1995, may authorize a levy first becoming 8.6 payable in 1996. 8.7 Sec. 30. [HEALTH AND SAFETY LEVY.] 8.8 Notwithstanding Minnesota Statutes, section 124.83, 8.9 subdivisions 4 and 7, a school district's levy for a health and 8.10 safety program under Minnesota Statutes, section 124.83, for the 8.11 1996-1997 school year shall be no greater than it was for the 8.12 prior year. If the resulting levy is less than the school 8.13 district would have levied under Minnesota Statutes, section 8.14 124.83, subdivisions 4 and 7, the district shall receive 8.15 additional aid equal to the difference. 8.16 Sec. 31. [HANDICAPPED ACCESS AND FIRE SAFETY LEVY.] 8.17 Notwithstanding Minnesota Statutes, section 124.84, 8.18 subdivisions 3 and 4, a school district's levy for purposes of 8.19 Minnesota Statutes, section 124.84, subdivisions 1 and 2, for 8.20 the 1996-1997 school year shall be no greater than it was for 8.21 the prior year. 8.22 Sec. 32. [LEVY TO RENT OR LEASE BUILDING OR LAND.] 8.23 Notwithstanding Minnesota Statutes, section 124.91, 8.24 subdivision 1, after March 30, 1995, the commissioner of 8.25 education shall not authorize any school district to make any 8.26 additional capital expenditure levy to rent or lease a building 8.27 or land for instructional purposes if the levy for that purpose 8.28 first becomes due and payable in 1996 unless the district's 8.29 capital expenditure levy for taxes payable in 1996, including 8.30 the levy for the new obligation, would not exceed its levy for 8.31 that purpose for taxes payable in 1995. 8.32 Sec. 33. [LEVY FOR LEASE PURCHASE OR INSTALLMENT BUYS.] 8.33 (a) Except as provided in paragraph (b), notwithstanding 8.34 Minnesota Statutes, section 124.91, subdivision 3, after March 8.35 30, 1995, no school district may enter into an installment 8.36 contract or a lease purchase agreement the levy for which would 9.1 first become payable in 1996 unless the district's total levy 9.2 for installment contracts and lease purchase agreements for 9.3 taxes payable in 1996, including the levy for the new 9.4 obligation, would not exceed its levy for that purpose for taxes 9.5 payable in 1995. 9.6 (b) The limitation in paragraph (a) does not apply to an 9.7 installment contract entered into before July 1, 1995, if it: 9.8 (1) relates to a high school construction project that was 9.9 approved by the commissioner of education under Minnesota 9.10 Statutes, section 121.15, before July 1, 1994; and 9.11 (2) relates at least in part to bids awarded between 9.12 September 8, 1994, and February 21, 1995. 9.13 Payments due on installment contracts described in this 9.14 paragraph during calendar year 1996 will be paid by the state. 9.15 The amount of those payments will be repaid by the school 9.16 district to the state in three equal annual installments 9.17 beginning in 1997. No interest will be due on those payments if 9.18 timely paid by June 15 of the year due. 9.19 Sec. 34. [COOPERATING DISTRICTS; CAPITAL LEVY.] 9.20 Notwithstanding Minnesota Statutes, section 124.91, 9.21 subdivision 4, a school district's levy under that subdivision 9.22 for the 1996-1997 school year shall be no greater than it was 9.23 for the prior year. 9.24 Sec. 35. [LEVY FOR INTERACTIVE TELEVISION.] 9.25 Notwithstanding Minnesota Statutes, section 124.91, 9.26 subdivision 5, a school district's levy for interactive 9.27 television for the 1996-1997 school year shall be no greater 9.28 than it was for the prior year. 9.29 Sec. 36. [ENERGY CONSERVATION LEVY.] 9.30 Notwithstanding Minnesota Statutes, section 124.91, 9.31 subdivision 6, a school district may not enter into a loan under 9.32 Minnesota Statutes, section 216C.37 or 298.292 to 298.298 after 9.33 March 27, 1995, if the levy for repayment of the loan would 9.34 first become payable in 1996. 9.35 Sec. 37. [LEVY FOR STATUTORY OBLIGATIONS.] 9.36 Notwithstanding Minnesota Statutes, section 124.912, 10.1 subdivision 1, a school district's levy as otherwise authorized 10.2 under that subdivision for the 1996-1997 school year shall be no 10.3 greater than it was for the prior year. To the extent that the 10.4 portion of the resulting levy for the school district's 10.5 obligation under Minnesota Statutes, section 268.06, subdivision 10.6 25, and section 268.08 is less than the school district would 10.7 have been otherwise authorized to levy under Minnesota Statutes, 10.8 section 124.912, subdivision 1, for these purposes, the school 10.9 district shall receive additional aid equal to the difference. 10.10 Sec. 38. [DESEGREGATION LEVY.] 10.11 Notwithstanding Minnesota Statutes, section 124.912, 10.12 subdivision 2, a school district's levy as otherwise authorized 10.13 under that subdivision for the 1995-1996 school year shall be no 10.14 greater than it was for the prior year. If the resulting levy 10.15 is less than the school district would have levied under that 10.16 subdivision, the school district shall receive additional aid 10.17 equal to the difference. 10.18 Sec. 39. [RULE COMPLIANCE LEVY.] 10.19 Notwithstanding Minnesota Statutes, section 124.912, 10.20 subdivision 3, a school district's levy as otherwise authorized 10.21 under that subdivision for the 1995-1996 school year shall be no 10.22 greater than it was for the prior year. If the resulting levy 10.23 is less than the school district would have levied under that 10.24 subdivision, the school district shall receive additional aid 10.25 equal to the difference. 10.26 Sec. 40. [LEVY FOR CRIME RELATED COSTS.] 10.27 Notwithstanding Minnesota Statutes, section 124.912, 10.28 subdivision 6, a school district's levy as otherwise authorized 10.29 under that subdivision for the 1996-1997 school year shall be no 10.30 greater than it was for the prior year. 10.31 Sec. 41. [ICE ARENA LEVY.] 10.32 Notwithstanding Minnesota Statutes, section 124.912, 10.33 subdivision 7, a school district's levy as otherwise authorized 10.34 under that subdivision for the 1996-1997 school year shall be no 10.35 greater than it was for the prior year. 10.36 Sec. 42. [OUTPLACEMENT LEVY.] 11.1 Notwithstanding Minnesota Statutes, section 124.912, 11.2 subdivision 8, the levy as otherwise authorized under that 11.3 subdivision for the 1996-1997 school year shall be no greater 11.4 than it was for the prior year. 11.5 Sec. 43. [ABATEMENT LEVY.] 11.6 Notwithstanding Minnesota Statutes, section 124.912, 11.7 subdivision 9, a school district's levy as otherwise authorized 11.8 under that subdivision for the 1996-1997 school year shall be no 11.9 greater than it was for the prior year. To the extent the 11.10 portion of the resulting levy otherwise authorized under 11.11 Minnesota Statutes, section 124.912, subdivision 9, paragraph 11.12 (a), clause (1), is less than the school district would have 11.13 been authorized to levy under that clause, the district shall 11.14 receive additional aid equal to the difference. The remaining 11.15 portion of the resulting levy that is less than the school 11.16 district would have been authorized to levy under the remainder 11.17 of Minnesota Statutes, section 124.912, subdivision 9, may be 11.18 levied over a four-year period notwithstanding the three-year 11.19 limitation of Minnesota Statutes, section 124.912, subdivision 11.20 9, paragraph (b). 11.21 Sec. 44. [OPERATING DEBT LEVIES.] 11.22 Notwithstanding Minnesota Statutes, section 122.531, 11.23 subdivision 4a; 124.914; or Laws 1992, chapter 499, article 7, 11.24 sections 16 and 17, a school district's levy as otherwise 11.25 authorized under those sections for the 1996-1997 school year 11.26 shall be no greater than it was for the prior year. To the 11.27 extent this prevents a district from amortizing its 11.28 reorganization operating debt as defined in Minnesota Statutes, 11.29 section 121.915, clause (1), in five years, the district shall 11.30 be permitted to levy the remainder in a subsequent year. 11.31 Sec. 45. [HEALTH INSURANCE BENEFITS LEVY.] 11.32 Notwithstanding Minnesota Statutes, section 124.916, 11.33 subdivision 1, or Laws 1993, chapter 224, article 8, section 18, 11.34 a school district's levy for retired employees health insurance 11.35 as otherwise authorized under those provisions of law for the 11.36 taxes payable in 1996 shall be no greater than it was for the 12.1 prior year. 12.2 Sec. 46. [RETIREMENT LEVY.] 12.3 Notwithstanding Minnesota Statutes, section 124.916, 12.4 subdivision 3, a school district's levy as otherwise authorized 12.5 under that subdivision for taxes payable in 1996 shall be no 12.6 greater than it was for the prior year. If the resulting levy 12.7 is less than the school district would have been authorized to 12.8 levy under that subdivision, the school district shall receive 12.9 additional aid equal to the difference. 12.10 Sec. 47. [MINNEAPOLIS HEALTH INSURANCE SUBSIDY.] 12.11 Notwithstanding Minnesota Statutes, section 124.916, 12.12 subdivision 4, a school district's levy as otherwise authorized 12.13 under that section for the 1996-1997 school year shall be no 12.14 greater than it was for the prior year. 12.15 Sec. 48. [LEVY FOR TACONITE PAYMENT.] 12.16 Notwithstanding Minnesota Statutes, section 124.918, 12.17 subdivision 8, a school district's levy reduction as otherwise 12.18 authorized under that subdivision for the 1996-1997 school year 12.19 shall be no less than it was for the prior year. General 12.20 education aid reduction for the 1996-1997 school year shall be 12.21 governed by Minnesota Statutes, section 124A.035, subdivision 5, 12.22 and the levy reduction as dictated by this section. 12.23 Sec. 49. [EQUALIZED DEBT SERVICE LEVY.] 12.24 Notwithstanding Minnesota Statutes, section 124.95, 12.25 subdivision 4, a school district's levy as otherwise authorized 12.26 under that subdivision for the 1996-1997 school year taxes 12.27 payable in 1996 shall be based on the actual pupil units in the 12.28 district for the 1992-1993 school year and the 1993 adjusted net 12.29 tax of the district. 12.30 Sec. 50. [UNEQUALIZED REFERENDUM LEVY.] 12.31 Notwithstanding Minnesota Statutes, section 124A.03, 12.32 subdivision 1i, a school district's unequalized referendum levy 12.33 for the 1996-1997 school year shall be no greater than it was 12.34 for the prior year. If the resulting levy is less than the 12.35 school district would have levied under that subdivision, the 12.36 school district shall receive additional aid equal to the 13.1 difference. 13.2 Sec. 51. [REFERENDUM LEVY.] 13.3 (a) Except as provided in paragraph (b) or (c), 13.4 notwithstanding Minnesota Statutes, section 124A.03, subdivision 13.5 2 or 2b, or 124B.03, subdivision 2, no referendum conducted 13.6 after March 30, 1995, under those sections may authorize a levy 13.7 first becoming payable in 1996. 13.8 (b) A referendum may authorize such a levy if the 13.9 referendum provides for continuation of a referendum levy that 13.10 terminates beginning with taxes payable in 1996. If the 13.11 terminated levy had been based on net tax capacity, the 13.12 referendum relating to taxes payable in 1996 must be based on 13.13 net tax capacity and the ballot shall state the estimated 13.14 referendum tax rate based on net tax capacity for taxes levied 13.15 in 1996, notwithstanding Minnesota Statutes, section 124A.03, 13.16 subdivisions 2 and 2a. To the extent the referendum relates to 13.17 taxes payable in 1997 and subsequent years, the levies for those 13.18 years are subject to Minnesota Statutes, sections 124A.03, 13.19 subdivision 2a, and 124A.0311, subdivision 3, and the ballot 13.20 shall also state the estimated referendum tax rate as a 13.21 percentage of market value for taxes levied in 1997. 13.22 (c) A referendum may authorize such a levy if the levy 13.23 required under the referendum would not result in an increase 13.24 for taxes payable in 1996 in the total levy for all purposes 13.25 imposed by the school district over the total levy imposed by 13.26 the district for taxes payable in 1995. 13.27 Sec. 52. [REFERENDUM AUTHORITY; CONVERSION.] 13.28 Notwithstanding Minnesota Statutes, section 124A.0311, 13.29 subdivisions 2 and 3, no school district may convert its 13.30 referendum authority currently authorized to be levied against 13.31 net tax capacity to referendum authority authorized to be levied 13.32 against referendum market value effective for taxes payable in 13.33 1996. 13.34 Sec. 53. [TRAINING AND EXPERIENCE LEVY.] 13.35 Notwithstanding Minnesota Statutes, section 124A.22, 13.36 subdivision 4a, a school district's training and experience levy 14.1 for the 1996-1997 school year shall be no greater than it was 14.2 for the prior year. 14.3 Sec. 54. [SUPPLEMENTAL LEVY.] 14.4 Notwithstanding Minnesota Statutes, section 124A.22, 14.5 subdivision 8a, a school district's supplemental levy for the 14.6 1996-1997 school year shall be no greater than it was for the 14.7 prior year. 14.8 Sec. 55. [GENERAL EDUCATION LEVY; OFF-FORMULA DISTRICTS.] 14.9 Notwithstanding Minnesota Statutes, section 124A.23, 14.10 subdivision 3, an off-formula school district's levy for general 14.11 education for the 1996-1997 school year shall be no greater than 14.12 it was for the prior year. An off-formula school district's aid 14.13 reduction for general education levy equity under Minnesota 14.14 Statutes, section 124A.24, shall be computed using the levy 14.15 computed under this section. If an off-formula district 14.16 payments pursuant to Minnesota Statutes, section 124A.035, 14.17 subdivision 4, are reduced from that received in the prior 14.18 school year, the district shall receive additional aid equal to 14.19 the difference. 14.20 Sec. 56. [LEVY REDUCTION.] 14.21 Notwithstanding Minnesota Statutes, section 124A.26, 14.22 subdivision 2, a district's levy reduction for the 1996-1997 14.23 school year under that subdivision shall be no less than it was 14.24 in the prior year. To the extent that the resulting reduction 14.25 is greater than the school district would have otherwise 14.26 received under that subdivision, the school district shall 14.27 receive additional aid equal to the difference. 14.28 Sec. 57. [STAFF DEVELOPMENT LEVY.] 14.29 Notwithstanding Minnesota Statutes, section 124A.292, 14.30 subdivision 3, a school district's levy for staff development 14.31 for the 1996-1997 school year shall be no greater than it was 14.32 for the prior year. 14.33 Sec. 58. [SCHOOL RESTRUCTURING LEVIES.] 14.34 Notwithstanding Minnesota Statutes, section 126.019, a 14.35 school district's levy under that section for taxes payable in 14.36 1996 shall be no greater than it was in the prior year. To the 15.1 extent the resulting levy is less than the district would have 15.2 otherwise been authorized to levy under that section, the 15.3 district shall receive additional aid equal to the difference. 15.4 Sec. 59. [LEVY FOR LOCAL SHARE OF TECHNICAL COLLEGE 15.5 CONSTRUCTION.] 15.6 Notwithstanding Minnesota Statutes, section 136C.411, the 15.7 levy as otherwise authorized under that section for the 15.8 1996-1997 school year shall be no greater than it was for the 15.9 prior year. If the resulting levy is less than is necessary for 15.10 the district to pay its local share of the costs of construction 15.11 in that year, the joint vocational technical district shall 15.12 receive additional aid equal to the difference. 15.13 Sec. 60. [JOINT VOCATIONAL TECHNICAL DISTRICT TAX LEVY.] 15.14 Notwithstanding Minnesota Statutes, section 136C.67, a 15.15 joint vocational technical district's levy under that 15.16 subdivision for the 1996-1997 school year shall be no greater 15.17 than it was for the prior year. 15.18 Sec. 61. [LEVY ADJUSTMENT.] 15.19 Notwithstanding any other law to the contrary, any 15.20 adjustment of a school district's levy authority other than for 15.21 debt redemption fund excesses under Minnesota Statutes, section 15.22 475.61, for taxes payable in 1996 shall not result in a levy 15.23 that is greater than it was in 1995. If the resulting levy 15.24 adjustments reduce the district's revenues below that which the 15.25 district would have otherwise received in the absence of this 15.26 section, the district will receive additional aid equal to the 15.27 difference. 15.28 Sec. 62. [OTHER LEVY AUTHORITY.] 15.29 A school district's levy under any special law or any 15.30 authority other than that contained in Minnesota Statutes, 15.31 chapters 124, 124A, and 136C, shall not be greater for taxes 15.32 payable in 1996 than it was for taxes payable in 1995 except for 15.33 any debt service on obligations, certificates of indebtedness, 15.34 capital notes, or other debt instruments issued prior to March 15.35 30, 1995, or to make payments on installment purchase contracts 15.36 or lease purchase agreements entered into prior to March 30, 16.1 1995. 16.2 Sec. 63. [BENEFIT RATIO FOR RURAL SERVICE DISTRICTS.] 16.3 Notwithstanding Minnesota Statutes, section 272.67, 16.4 subdivision 6, the benefit ratio used for apportioning levies to 16.5 a rural service district for taxes payable in 1996 shall not be 16.6 greater than that in effect for taxes payable in 1995. 16.7 Sec. 64. [PROHIBITION AGAINST INCURRING NEW DEBT.] 16.8 Subdivision 1. [GENERALLY.] (a) After March 30, 1995, no 16.9 municipality as defined in Minnesota Statutes, section 475.51, 16.10 or any special taxing district as defined under Minnesota 16.11 Statutes, section 275.066, may sell obligations, certificates of 16.12 indebtedness, or capital notes under Minnesota Statutes, chapter 16.13 475, section 412.301, or any other law authorizing obligations, 16.14 certificates of indebtedness, capital notes, or other debt 16.15 instruments or enter into installment purchase contracts or 16.16 lease purchase agreements under Minnesota Statutes, section 16.17 465.71, or any other law authorizing installment purchase 16.18 contracts or lease purchase agreements if issuing those debt 16.19 instruments or entering into those contracts would require a 16.20 levy first becoming due in 1996. This restriction does not 16.21 apply to (1) refunding bonds sold to refund bonds originally 16.22 sold before March 30, 1995 or (2) obligations for which the 16.23 amount of the levy first becoming due in 1996 would not exceed 16.24 the amount by which the municipality's total debt service levy 16.25 for taxes payable in 1996 prior to issuance of those obligations 16.26 is less than the municipality's total debt service levy for 16.27 taxes payable in 1995. As used in clause (2), "obligations" 16.28 includes certificates of indebtedness, capital notes, or other 16.29 debt instruments or installment purchase contracts or lease 16.30 purchase agreements. 16.31 (b) For purposes of this section, bonds will be deemed to 16.32 have been sold before March 30, 1995, if: 16.33 (1) an agreement has been entered into between the 16.34 municipality and a purchaser or underwriter for the sale of the 16.35 bonds by that date; 16.36 (2) the issuing municipality is a party to contract or 17.1 letter of understanding entered into before March 30, 1995, with 17.2 the federal government that requires the municipality to pay for 17.3 a project, and the project will be funded with the proceeds of 17.4 the bonds; or 17.5 (3) the proceeds of the bonds will be used to fund a 17.6 project or acquisition with respect to which the municipality 17.7 has entered into a contract with a builder or supplier before 17.8 March 30. Debt service payments due on bonds described in this 17.9 paragraph during calendar year 1996 will be paid by the state. 17.10 The amount of those payments must be repaid by the municipality 17.11 to the state in three equal annual installments beginning in 17.12 1997. No interest will be due on those payments if timely paid 17.13 by June 15 of the year due. 17.14 Subd. 2. [EXCEPTION.] Notwithstanding subdivision 1, 17.15 certificates of indebtedness, capital notes, installment 17.16 purchase contracts, lease purchase agreements or any other debt 17.17 instruments and the debt service levies for the obligations 17.18 shall, for purposes of this act, be treated as if sold prior to 17.19 March 30, 1995, if: 17.20 (a) The municipality or other governmental authority has 17.21 satisfied any one of the following conditions prior to March 30, 17.22 1995: 17.23 (1) it has adopted a resolution or ordinance authorizing 17.24 the issuance of the obligations; 17.25 (2) it has declared official intent to issue the 17.26 obligations under federal tax laws and regulations; or 17.27 (3) it has entered into a binding agreement to design or 17.28 construct a project or acquire property to be financed with the 17.29 obligations; and 17.30 (b) The municipality makes a finding at the time of the 17.31 sale of the bonds that no levy will be required for taxes 17.32 payable in 1996 to pay the debt service on the obligations 17.33 because sufficient funds are available from nonproperty tax 17.34 sources to pay the debt service. 17.35 Sec. 65. [ASSESSMENT LIMITATIONS.] 17.36 Subdivision 1. [1995 ASSESSMENT.] Notwithstanding 18.1 Minnesota Statutes, section 273.11, or any other law to the 18.2 contrary, the value of property for the 1995 assessment shall 18.3 not exceed the lesser of its limited market value determined for 18.4 the 1994 assessment pursuant to Minnesota Statutes, section 18.5 273.11, subdivision 1a, or its market value as otherwise 18.6 determined for the 1994 assessment provided that any value 18.7 attributable to new construction or improvements to the extent 18.8 it does not qualify for deferral under Minnesota Statutes, 18.9 section 273.11, subdivision 16, shall be added to the prior 18.10 year's value used to determine its tax capacity. It is further 18.11 provided that previously tax exempt property that loses its tax 18.12 exempt status pursuant to Minnesota Statutes, section 272.02, 18.13 subdivision 4, shall not have its assessment limited in any way 18.14 under this subdivision. 18.15 Subd. 2. [1996 ASSESSMENT.] The provisions of Minnesota 18.16 Statutes, section 273.11, subdivision 1a, shall govern in 18.17 determining the value of property classified as agricultural 18.18 homestead or nonhomestead, residential homestead or 18.19 nonhomestead, or noncommercial seasonal residential for the 1996 18.20 assessment provided that "five percent" shall be substituted for 18.21 "ten percent" in that section. 18.22 Sec. 66. [LEVY LIMITATION TAXES PAYABLE IN 1996.] 18.23 Subdivision 1. [TAXES PAYABLE IN 1996 PROPOSED LEVY.] 18.24 Notwithstanding any other law to the contrary, for purposes of 18.25 the certification required by Minnesota Statutes, section 18.26 275.065, subdivision 1, in 1995, no taxing authority other than 18.27 a school district shall certify to the county auditor a proposed 18.28 property tax levy or in the case of a township, a final property 18.29 tax levy, greater than the amount certified to the county 18.30 auditor pursuant to Minnesota Statutes, section 275.07, 18.31 subdivision 1, in the prior year except as provided in 18.32 subdivisions 3, 4, and 5. 18.33 Subd. 2. [TAXES PAYABLE IN 1996 FINAL LEVY.] 18.34 Notwithstanding any other law to the contrary, for purposes of 18.35 the certification required by Minnesota Statutes, section 18.36 275.07, subdivision 1, in 1995, no taxing authority other than a 19.1 school district shall certify to the county auditor a property 19.2 tax levy greater than the amount certified to the county auditor 19.3 pursuant to Minnesota Statutes, section 275.07, subdivision 1, 19.4 in the prior year except as provided in subdivisions 3 and 4. 19.5 Subd. 3. [SCHOOL DISTRICTS.] School district levies shall 19.6 be governed by sections 1 to 62. 19.7 Subd. 4. [DEBT SERVICE EXCEPTION.] If a payable 1996 levy 19.8 for debt service on obligations, certificates of indebtedness, 19.9 capital notes, or other debt instruments issued prior to March 19.10 30, 1995, or to make payments on installment purchase contracts 19.11 or lease purchase agreements entered into prior to March 30, 19.12 1995, exceeds the levy a taxing authority certified pursuant to 19.13 Minnesota Statutes, section 275.07, subdivision 1, for taxes 19.14 payable in 1995 for the same purpose, the excess may be levied 19.15 notwithstanding the limitations of subdivisions 1 and 2. 19.16 Subd. 5. [ANNEXATION EXCEPTION.] The tax and levy relating 19.17 thereto on property annexed under Minnesota Statutes, chapter 19.18 414, may be increased pursuant to the provisions of that chapter 19.19 notwithstanding subdivision 1. Furthermore, any tax rate 19.20 increase on the affected property pursuant to the provisions of 19.21 Minnesota Statutes, chapter 414, shall not be subject to the 19.22 provisions of section 69. 19.23 Sec. 67. [LEVY LIMITATION TAXES PAYABLE IN 1997.] 19.24 Subdivision 1. [DEFINITION.] The "percentage increase in 19.25 the implicit price deflator" means the percentage change in the 19.26 implicit price deflator for state and local governments 19.27 purchases of goods and services as calculated in Minnesota 19.28 Statutes, section 477A.03, subdivision 3, provided that the 2.5 19.29 percent and five percent limits do not apply and that the 19.30 increase can not be less than zero percent. 19.31 Subd. 2. [TAXES PAYABLE IN 1997 PROPOSED LEVY.] 19.32 Notwithstanding any other law to the contrary, for purposes of 19.33 the certification required by Minnesota Statutes, section 19.34 275.065, subdivision 1, in 1996, no taxing authority other than 19.35 a school district or a joint vocational technical district shall 19.36 certify to the county auditor a proposed property tax levy or in 20.1 the case of a township, a final property tax levy, that is 20.2 greater than the product of: 20.3 (1) the sum of one plus the lesser of (i) three percent, or 20.4 (ii) the percentage increase in the implicit price deflator; and 20.5 (2) the amount certified to the county auditor pursuant to 20.6 Minnesota Statutes, section 275.07, subdivision 1, in the prior 20.7 year, except as provided in subdivisions 3 and 4. 20.8 Subd. 3. [TAXES PAYABLE IN 1997 FINAL LEVY.] 20.9 Notwithstanding any other law to the contrary, for purposes of 20.10 the certification required by Minnesota Statutes, section 20.11 275.07, subdivision 1, in 1996, no taxing authority other than a 20.12 school district or a joint vocational technical district shall 20.13 certify to the county auditor a property tax levy that is 20.14 greater than the product of: 20.15 (1) the sum of one plus the lesser of (i) three percent, or 20.16 (ii) the percentage increase in the implicit price deflator; and 20.17 (2) the amount certified to the county auditor pursuant to 20.18 Minnesota Statutes, section 275.07, subdivision 1, in the prior 20.19 year, except as provided in subdivisions 3 and 4. 20.20 Subd. 4. [REFERENDA.] (a) A taxing authority other than a 20.21 school district or an education district may increase its levy 20.22 above the limits provided in subdivisions 1 and 2, by the amount 20.23 approved by the voters residing in the jurisdiction of the 20.24 authority at a referendum called for the purpose. The 20.25 referendum may be called by the governing body or shall be 20.26 called by the governing body upon written petition of qualified 20.27 voters of the jurisdiction. The referendum shall be conducted 20.28 during the calendar year before the increased levy authority, if 20.29 approved, first becomes payable. Only one election to approve 20.30 an increase may be held in a calendar year. The referendum must 20.31 be held on the first Tuesday after the first Monday in 20.32 November. The ballot shall state the maximum amount of the 20.33 increased levy and the estimated referendum tax rate as a 20.34 percentage of taxable net tax capacity in the year it is to be 20.35 levied. The ballot may contain a textual portion with the 20.36 information required in this subdivision and a question stating 21.1 substantially the following: 21.2 "Shall the increase in the levy proposed by (petition to) 21.3 the governing body of ........., be approved?" 21.4 (b) The governing body shall prepare and deliver by first 21.5 class mail at least 15 days but no more than 30 days prior to 21.6 the day of the referendum to each taxpayer a notice of the 21.7 referendum and the proposed levy increase. The governing body 21.8 need not mail more than once notice to any taxpayer. For the 21.9 purpose of giving mailed notice under this subdivision, owners 21.10 shall be those shown to be owners on the records of the county 21.11 auditor or, in any county where tax statements are mailed by the 21.12 county treasurer, on the records of the county treasurer. Every 21.13 property owner whose name does not appear on the records of the 21.14 county auditor or the county treasurer shall be deemed to have 21.15 waived this mailed notice unless the owner has requested in 21.16 writing that the county auditor or county treasurer, as the case 21.17 may be, include the name on the records for this purpose. The 21.18 notice must project the anticipated amount of tax increase in 21.19 annual dollars and annual percentage for typical residential 21.20 homesteads, agricultural homesteads, apartments, and 21.21 commercial-industrial property within the jurisdiction of the 21.22 taxing authority. 21.23 The notice must include the following statement: "Passage 21.24 of this referendum will result in an increase in your property 21.25 taxes." 21.26 (c) A petition authorized by paragraph (a) shall be 21.27 effective if signed by a number of qualified voters in excess of 21.28 15 percent of the registered voters of the jurisdiction of the 21.29 taxing authority on the day the petition is filed with the 21.30 governing body. A referendum invoked by petition shall be held 21.31 on the date specified in paragraph (a). 21.32 (d) The approval of 50 percent plus one of those voting on 21.33 the question is required to pass a referendum authorized by this 21.34 subdivision. 21.35 (e) A bond authorization under Minnesota Statutes, section 21.36 475.59, shall be deemed to meet the requirements of this 22.1 subdivision provided the ballot includes the information 22.2 required in paragraph (a) and the notice required in paragraph 22.3 (b) is distributed. 22.4 Subd. 5. [DEBT SERVICE EXCEPTION.] If a payable 1997 levy 22.5 for debt service on obligations, certificates of indebtedness, 22.6 capital notes, or other debt instruments issued prior to March 22.7 30, 1995, or to make payments on installment purchase contracts 22.8 or lease purchase agreements entered into prior to March 30, 22.9 1995, exceeds the levy a taxing authority certified pursuant to 22.10 Minnesota Statutes, section 275.07, subdivision 1, for taxes 22.11 payable in 1996 for the same purpose, or exceeds any payable 22.12 1997 levy required as a condition for the issuance of general 22.13 obligations the excess may be levied notwithstanding the 22.14 limitations of subdivisions 1 and 2. 22.15 Sec. 68. [FISCAL DISPARITIES FREEZE.] 22.16 Notwithstanding Minnesota Statutes, section 473F.08, 22.17 subdivision 2, clause (a), the amount to be deducted from a 22.18 governmental unit's net tax capacity for taxes payable in 1996 22.19 under that clause shall equal the amount deducted for taxes 22.20 payable in 1995. Notwithstanding Minnesota Statutes, section 22.21 473F.08, subdivision 2, clause (b), the amount to be added to a 22.22 governmental unit's net tax capacity for taxes payable in 1996 22.23 under that clause shall equal the same amount added for taxes 22.24 payable in 1995. Notwithstanding Minnesota Statutes, section 22.25 473F.08, subdivision 3, the areawide portion of the levy for 22.26 each governmental unit shall be determined using the local tax 22.27 rate for the 1993 levy year. Notwithstanding Minnesota 22.28 Statutes, section 473F.08, subdivision 6, the portion of 22.29 commercial-industrial property within a municipality subject to 22.30 the areawide tax rate shall be computed using the amount 22.31 determined under Minnesota Statutes, sections 473F.06 and 22.32 473F.07, for taxes payable in 1995. 22.33 Sec. 69. [TAX RATE FREEZE.] 22.34 Subdivision 1. [REDUCTION OF LEVY; PAYMENT.] If in the 22.35 course of determining local tax rates for taxes payable in 1996 22.36 after reductions for disparity reduction aid under Minnesota 23.1 Statutes, section 275.08, subdivisions 1c and 1d, the county 23.2 auditor finds the local tax rate exceeds that in effect for 23.3 taxes payable in 1995, the county auditor shall reduce the local 23.4 government's levy so the local tax rate does not exceed that in 23.5 effect for taxes payable in 1995. The difference between the 23.6 levy as originally certified by the local government and the 23.7 reduced levy shall be certified to the commissioner of revenue 23.8 at the time the abstracts are submitted under Minnesota 23.9 Statutes, section 275.29. That amount shall be paid to the 23.10 local government on or before August 31. 23.11 Subd. 2. [APPROPRIATION.] An amount sufficient to pay the 23.12 aid provided for under this section is annually appropriated 23.13 from the general fund to the commissioner of revenue for payment 23.14 to counties, cities, townships, and special taxing districts. 23.15 An amount sufficient to pay the aid provided for under this 23.16 section is annually appropriated from the general fund to the 23.17 commissioner of education for payment to school districts. 23.18 Sec. 70. [PENSION LIABILITIES.] 23.19 Notwithstanding any other law or charter provision to the 23.20 contrary, no levy for taxes payable in 1996 for a local police 23.21 and fire relief association for the purpose of amortizing an 23.22 unfunded pension liability may exceed the levy for that purpose 23.23 for taxes payable in 1995. 23.24 Sec. 71. [DUTIES OF TOWNSHIP BOARD OF SUPERVISORS.] 23.25 Notwithstanding Minnesota Statutes, section 365.10, in 1995 23.26 the township board of supervisors shall adjust the levy and in 23.27 1996 the township board of supervisors may adjust the 23.28 expenditures of a township below the level authorized by the 23.29 electors to adjust for any reduction in the previously 23.30 authorized levy of the township pursuant to section 66. 23.31 Sec. 72. [PROPERTY TAX AND EDUCATION AIDS REFORM.] 23.32 Subdivision 1. [RECOMMENDED PROGRAM.] The legislative 23.33 commission on planning and fiscal policy shall prepare and 23.34 recommend to the legislature a property tax reform and education 23.35 aids reform program that includes: 23.36 (1) a property tax classification and class rate system; 24.1 (2) elementary and secondary education aids and levies; and 24.2 (3) aids to local government. 24.3 Subd. 2. [STANDARDS.] (a) The recommended program must 24.4 provide for accountability, equity, revenue adequacy, and 24.5 efficiency as provided in paragraphs (b) to (e). 24.6 (b) The recommended program must provide accountability by 24.7 being understandable to the taxpayer, by linking the costs of 24.8 services to the taxes paid for those services, and by 24.9 correlating the responsibility for raising revenues with the 24.10 ability to make spending decisions. 24.11 (c) The recommended program must provide equity by 24.12 minimizing large, short-term shifts in tax burdens, and by 24.13 ensuring that tax burdens and aids are progressive and related 24.14 to the ability to pay or raise revenue. 24.15 (d) The recommended program must provide for adequate 24.16 revenue by controlling costs and the need for increased revenue, 24.17 minimizing reductions or shifts in revenues available to local 24.18 governments to provide needed services, and directing aids to 24.19 meet needs and fund services based on established funding 24.20 priorities. 24.21 (e) The program must promote efficiency by providing stable 24.22 predictable property taxes and local government revenues that 24.23 are competitive with those of other states and areas so that 24.24 property taxes and aids have minimal impact on the economic 24.25 decisions of taxpayers. 24.26 Subd. 3. [TASK FORCE.] The commission may designate a task 24.27 force to advise the commission in carrying out its duties under 24.28 this section. The task force may include legislators, agency 24.29 and legislative staff, state and local governmental officials, 24.30 educators, and taxpayers and members of the public. The task 24.31 force expires on January 1, 1997. 24.32 Subd. 4. [SERVICES.] The commission may enter into 24.33 contracts for the professional and other services necessary to 24.34 carry out its duties under this section. 24.35 Subd. 5. [REPORT.] The commission shall report its 24.36 recommendations to the legislature on or before January 1, 25.1 1997. The report shall include proposed legislation to 25.2 implement the recommendations of the commission. 25.3 Sec. 73. [UNFUNDED MANDATE PROHIBITION.] 25.4 Subdivision 1. [DEFINITION.] As used in this section, 25.5 "state mandates" has the meaning given in Minnesota Statutes, 25.6 section 3.881. 25.7 Subd. 2. [FUNDING OF THE COST OF MANDATES.] If the fiscal 25.8 note prepared by the commissioner of finance under Minnesota 25.9 Statutes, section 3.982, indicates that a new or expanded 25.10 mandate on a political subdivision in a bill introduced in the 25.11 legislature will impose a statewide cost on counties in excess 25.12 of $500,000 or a statewide cost on cities or townships in excess 25.13 of $250,000, the political subdivisions are not required to 25.14 implement the mandate unless the legislature, by appropriation 25.15 enacted before the mandate is required to be implemented, 25.16 provides reimbursement to the political subdivisions for the 25.17 costs incurred. 25.18 Sec. 74. [SAVINGS CLAUSE.] 25.19 Notwithstanding the repealers in section 75 or any other 25.20 provision in this act to the contrary, nothing in this act 25.21 constitutes an impairment of any obligations, certificates of 25.22 indebtedness, capital notes, or other debt instruments, 25.23 including installment purchase contracts or lease purchase 25.24 agreements, issued before the date of final enactment of this 25.25 act, by a municipality as defined in Minnesota Statutes, section 25.26 469.174, subdivision 6, or a special taxing district as defined 25.27 in Minnesota Statutes, section 275.066. 25.28 Sec. 75. [REPEALER.] 25.29 Subdivision 1. Minnesota Statutes 1994, sections 124.01; 25.30 124.05; 124.06; 124.07; 124.76; 124.82; 124.829; 124.83; 124.84; 25.31 124.85; 124.86; 124.90; 124.91; 124.912; 124.914; 124.916; 25.32 124.918; 124.95; 124.961; 124.962; 124.97; 124A.02, subdivisions 25.33 16, 23, and 24; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 25.34 1h, and 1i; 124A.0311; 124A.032; 124A.04; 124A.22, subdivisions 25.35 1, 2, 3, 4, 4a, 4b, 6, 6a, 8, and 9; 124A.23; 124A.24; 124A.26, 25.36 subdivisions 1, 2, and 3; 124A.27; 124A.28; and 124A.29, 26.1 subdivision 2, are repealed. Laws 1991, chapter 265, article 7, 26.2 section 35, is repealed. 26.3 Subd. 2. Minnesota Statutes 1994, sections 273.13; 26.4 273.135; 273.136; 273.1391; 473F.001; 473F.01; 473F.02; 473F.03; 26.5 473F.05; 473F.06; 473F.07; 473F.08; 473F.09; 473F.10; 473F.11; 26.6 473F.13; 477A.011; 477A.012; 477A.0121; 477A.0122; 477A.013; 26.7 477A.0132; 477A.014; 477A.015; 477A.016; 477A.017; 477A.03; 26.8 477A.11; 477A.12; 477A.13; 477A.14; and 477A.15, are repealed. 26.9 Sec. 76. [EFFECTIVE DATE.] 26.10 Section 75, subdivision 2, is effective for taxes payable 26.11 in 1998, and section 75, subdivision 1, is effective for the 26.12 1998-1999 school year, provided that if the legislature does not 26.13 pass and the governor does not approve legislation by the 26.14 conclusion of the 1997 session that states in its body that it 26.15 is replacing the provisions of the repealed chapters and 26.16 sections in section 75, the repealed chapters and sections are 26.17 reenacted.