SF 1684

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; proposing an amendment to the 
  1.3             Minnesota Constitution by amending article XIII, 
  1.4             section 1; requiring state funding of certain costs of 
  1.5             education; reserving certain budget surplus to fund 
  1.6             education costs; providing for establishment of aid 
  1.7             distribution councils; establishing task forces to 
  1.8             study local government and education finance; 
  1.9             providing for payments of certain aids and imposition 
  1.10            of levies; appropriating money; amending Minnesota 
  1.11            Statutes 1994, sections 16A.152, subdivision 2; and 
  1.12            465.795, subdivision 7; proposing coding for new law 
  1.13            in Minnesota Statutes, chapter 465; repealing 
  1.14            Minnesota Statutes 1994, sections 124A.02, 
  1.15            subdivisions 16 and 24; 124A.03, subdivisions 1b, 1c, 
  1.16            1d, 1e, 1f, 1g, 1h, 1i, and 3b; 124A.034; 124A.035; 
  1.17            124A.036; 124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 
  1.18            4b, 8, and 9; 124A.225; 124A.23; 124A.24; 124A.26; 
  1.19            124A.28; 124A.29, subdivision 1; 273.138; 273.1398; 
  1.20            273.1399; 273.166; 477A.011; 477A.012; 477A.0121; 
  1.21            477A.0122; 477A.013; 477A.0132; 477A.014; 477A.015; 
  1.22            and 477A.03. 
  1.23  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.24                             ARTICLE I
  1.25                      CONSTITUTIONAL AMENDMENT
  1.26     Section 1.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
  1.27     An amendment to the Minnesota Constitution, article XIII, 
  1.28  section 1, is proposed to the people.  If the amendment is 
  1.29  adopted, the section will read as follows: 
  1.30     Section 1.  The stability of a republican form of 
  1.31  government depending mainly upon the intelligence of the people, 
  1.32  it is the duty of the legislature to establish a general and 
  1.33  uniform system of public schools.  The legislature shall make 
  1.34  such provisions by taxation or otherwise as will secure a 
  2.1   thorough and efficient system of public schools throughout the 
  2.2   state.  At least 70 percent of the cost of core educational 
  2.3   services provided by the public schools, as defined by the 
  2.4   legislature, must be paid by the state. 
  2.5      Sec. 2.  [SUBMISSION TO VOTERS.] 
  2.6      The proposed amendment must be submitted to the people at 
  2.7   the 1996 general election.  The question submitted shall be: 
  2.8      "Shall the Minnesota Constitution be amended to require 
  2.9   that the state provide funding for at least 70 percent of the 
  2.10  cost of core educational services provided by the public schools?
  2.11                                     Yes .......
  2.12                                     No ........"
  2.13     Election procedures shall be as provided by law. 
  2.14                             ARTICLE 2
  2.15                  LOCAL GOVERNMENT FINANCE REFORM
  2.16     Section 1.  Minnesota Statutes 1994, section 16A.152, 
  2.17  subdivision 2, is amended to read: 
  2.18     Subd. 2.  [ADDITIONAL REVENUES; PRIORITY.] If on the basis 
  2.19  of a forecast of general fund revenues and expenditures the 
  2.20  commissioner of finance determines that there will be a positive 
  2.21  unrestricted budgetary general fund balance at the close of the 
  2.22  biennium, the commissioner of finance must allocate money to the 
  2.23  budget reserve and cash flow account until the total amount in 
  2.24  the account equals five percent of total general fund 
  2.25  appropriations for the current biennium as established by the 
  2.26  most recent legislative session.  Beginning July 1, 1993, 
  2.27  forecast unrestricted budgetary general fund balances are first 
  2.28  appropriated to restore the budget reserve and cash flow account 
  2.29  to $500,000,000.  Beginning July 1, 1995, the first $100,000,000 
  2.30  of additional biennial unrestricted budgetary general fund 
  2.31  balances available after November 1 of every odd-numbered 
  2.32  calendar year are appropriated deposited in January of the 
  2.33  following year to reduce the property tax levy recognition 
  2.34  percent under section 121.904, subdivision 4a, to zero in a 
  2.35  special fund in the state treasury to be used to provide funding 
  2.36  for core educational services before additional money beyond 
  3.1   $500,000,000 is allocated to the budget reserve and cash flow 
  3.2   account.  Additionally, $180,000,000 of the budget reserve and 
  3.3   cash flow account shall be dedicated to elementary and secondary 
  3.4   education. 
  3.5      The amounts necessary to meet the requirements of this 
  3.6   section are appropriated from the general fund. 
  3.7      Sec. 2.  Minnesota Statutes 1994, section 465.795, 
  3.8   subdivision 7, is amended to read: 
  3.9      Subd. 7.  [SCOPE.] As used in sections 465.795 to 465.799 
  3.10  and sections 465.801 to 465.87 465.88, the terms defined in this 
  3.11  section have the meanings given them. 
  3.12     Sec. 3.  [465.88] [AID DISTRIBUTION COUNCILS; PILOT 
  3.13  PROJECT.] 
  3.14     Subdivision 1.  [AUTHORIZATION.] The board shall provide 
  3.15  special grants to local government applicants for establishment 
  3.16  of aid distribution councils.  The councils or "grantees" shall 
  3.17  determine the allocation of state funds provided to local 
  3.18  government units other than school districts.  For purposes of 
  3.19  aids to be distributed during calendar years 1997 and 1998, the 
  3.20  board may designate at least two and up to four grantees.  At 
  3.21  least one grantee must be located within a metropolitan county 
  3.22  as defined in section 473.121, subdivision 4, and at least one 
  3.23  must be located in a nonmetropolitan county.  Applications for 
  3.24  grants must be made to the board by September 1, 1995.  To be 
  3.25  considered by the board, an application must be submitted 
  3.26  jointly by the governing body of a county and the governing 
  3.27  bodies of cities located within the counties that, in the 
  3.28  aggregate, either: 
  3.29     (1) receive over 75 percent of the amount of the aids 
  3.30  described in subdivision 4 that are distributed to all cities 
  3.31  within the county; or 
  3.32     (2) have over 75 percent of the population of the county.  
  3.33  The governing body of towns, special taxing districts, and 
  3.34  school districts located in whole or in part within the county 
  3.35  may join in the application by designating their proposed 
  3.36  cooperation with or contribution to the county or cities. 
  4.1      Subd. 2.  [REVIEW PROCESS.] Upon receipt of an application 
  4.2   from a county, cities, and other local government units, if any, 
  4.3   the board shall review the application for designation as a 
  4.4   site.  The application must contain the applicants' description 
  4.5   of their proposed process and criteria for allocation of aids 
  4.6   within the county.  In deciding whether to designate a grantee 
  4.7   as a site for an aid distribution council, the board shall use a 
  4.8   scoring system that provides points for the following elements: 
  4.9      (1) plans for innovative service delivery changes relating 
  4.10  to the basic needs of the community; the changes should be 
  4.11  reasonably likely to result in long-term savings or improved 
  4.12  service delivery with no cost increases; 
  4.13     (2) a plan for the reinvestment of savings realized from 
  4.14  the service delivery changes into property tax relief; 
  4.15     (3) a plan for use of the aid money to finance innovative 
  4.16  programs of focused property tax relief; 
  4.17     (4) a plan for establishment of priority boards within each 
  4.18  local unit of government that joins in the application.  As used 
  4.19  in this clause, "priority board" means an organization designed 
  4.20  to foster citizen participation in the actions of and decisions 
  4.21  made by a local unit of government.  A priority board system is 
  4.22  established by action of the governing body of a local unit of 
  4.23  government, which divides the geographic area of its 
  4.24  jurisdiction into a number of districts determined by the 
  4.25  governing body to be sufficient to provide representation to 
  4.26  communities of interest.  Residents of each district must elect 
  4.27  board members, with representation either at large or based on 
  4.28  neighborhoods or voting precincts.  Each board shall elect 
  4.29  officers and appoint committees as needed.  The governing body 
  4.30  must provide the boards with the resources necessary to 
  4.31  operate.  Employees of the local unit of government must provide 
  4.32  a mechanism for receiving and responding to the board's input 
  4.33  and involvement in the decision-making process on decisions 
  4.34  relating to the board's interests; 
  4.35     (5) plans for consolidation or cooperative provision of 
  4.36  services, functions, or facilities; and 
  5.1      (6) plans for cooperation with or contributions by any 
  5.2   school districts, towns, and special taxing districts that join 
  5.3   in the application. 
  5.4      Subd. 3.  [COMPOSITION OF AID DISTRIBUTION 
  5.5   COUNCILS.] Membership of an aid distribution council established 
  5.6   under this section shall consist of city council members or 
  5.7   mayors, county commissioners, and, to the extent they are 
  5.8   designated as members of the council, school board members, 
  5.9   township officials, and representatives of other special taxing 
  5.10  districts.  The application submitted to the board shall specify 
  5.11  the number of members from each category of representatives. 
  5.12     Subd. 4.  [BLOCK GRANTS.] The block grant provided to each 
  5.13  aid distribution council shall be an amount equal to the sum of: 
  5.14     (1) the attached machinery aid paid to the county under 
  5.15  section 273.138; 
  5.16     (2) the regular and manufactured home homestead and 
  5.17  agricultural credit aid paid to the county and to the townships, 
  5.18  cities, and special taxing districts within the county under 
  5.19  sections 273.1398, subdivision 2, and 273.166; 
  5.20     (3) the local government aid paid to cities and townships 
  5.21  within the county under sections 477A.011 to 477A.014; 
  5.22     (4) the disparity reduction aid paid to townships and the 
  5.23  county under section 273.1398, subdivision 3, as paid to the 
  5.24  local government units within the county in calendar year 1995; 
  5.25  and 
  5.26     (5) an additional amount determined by the board. 
  5.27     In the case of a city, township, or other special taxing 
  5.28  district which is located only partially within the county, the 
  5.29  aid amount subject to allocation by the aid distribution council 
  5.30  must be prorated based on the proportion of the population of 
  5.31  that local government unit that resides within the county.  
  5.32     The amount of the aids described in clauses (1) to (4) 
  5.33  shall be paid by the commissioner of revenue to the local 
  5.34  governments in the manner provided in the applicable statute, 
  5.35  except that the amount of the distribution to each local 
  5.36  government unit shall be the amount determined by the aid 
  6.1   distribution council. 
  6.2      The board shall certify the total amount of the grant for 
  6.3   distribution each year to the aid distribution council by 
  6.4   November 15, 1995.  
  6.5      Subd. 5.  [COUNCIL PROCESS.] The aid distribution council 
  6.6   shall conduct public hearings in at least three locations in 
  6.7   various parts of the county between January 1 and May 31 of the 
  6.8   year preceding the aid distribution.  By July 15 of the year 
  6.9   preceding the aid distribution, the aid distribution council 
  6.10  shall make its final determination on the allocation of the 
  6.11  grant to local governments within the county.  Up to one-half of 
  6.12  the portion of the block grant provided under subdivision 4 that 
  6.13  is based on 1995 aids may be distributed to each local unit of 
  6.14  government within the county in proportion to its 1995 aid 
  6.15  distribution.  The remainder must be distributed according to 
  6.16  the determination of the aid distribution council, based on the 
  6.17  elements described in subdivision 2.  These amounts shall be 
  6.18  certified to the county treasurer.  The chair of the board shall 
  6.19  pay the amount of the grants described in subdivision 4, clause 
  6.20  (5), to the county treasurer on the dates provided in section 
  6.21  477A.015 for aid distributions. 
  6.22     Subd. 6.  [APPROPRIATION.] $500,000 is appropriated from 
  6.23  the general fund to the board of government innovation and 
  6.24  cooperation, to be used to provide grants to aid distribution 
  6.25  councils as described in subdivision 4, clause (5). 
  6.26     Subd. 7.  [REPORT TO LEGISLATURE.] The board shall report 
  6.27  by January 1 of 1996 and 1997 to the chairs of the senate 
  6.28  committee on taxes and tax laws and the house tax committee on 
  6.29  the implementation of this section. 
  6.30     Sec. 4.  [GENERAL PROPERTY TAX LIMITATIONS FOR TAXES 
  6.31  PAYABLE IN 1996.] 
  6.32     Subdivision 1.  [SCOPE; DEFINITION.] This section 
  6.33  supersedes all special and general laws and charter provisions 
  6.34  establishing any limitation on ad valorem tax levies of 
  6.35  governmental subdivisions to the extent that they authorize 
  6.36  property taxation in excess of the limitation established in 
  7.1   this section.  As used in this section, "governmental 
  7.2   subdivision" means a county, home rule charter city, statutory 
  7.3   city, town, school district, and all special taxing districts.  
  7.4      Subd. 2.  [PAYABLE 1996 MARKET VALUE.] For taxes payable in 
  7.5   1996, the market value of any parcel of property shall be the 
  7.6   lesser of:  (1) its market value established in the assessment 
  7.7   for taxes payable in 1995, plus the market value established in 
  7.8   the assessment for taxes payable in 1996 of new construction in 
  7.9   the assessment for taxes payable in 1996; or (2) its market 
  7.10  value established in the assessment for taxes payable in 1996.  
  7.11  For property that was exempt from tax for taxes payable in 1995, 
  7.12  but has become taxable for taxes payable in 1996, "market value" 
  7.13  means the market value of the property established in the 
  7.14  assessment for taxes payable in 1996.  
  7.15     Subd. 3.  [PAYABLE 1996 TAX RATE LIMITATION.] The local tax 
  7.16  rate of a governmental subdivision for taxes payable in 1996, 
  7.17  after the adjustments required by Minnesota Statutes, section 
  7.18  275.08, subdivisions 1c, and 1d if applicable, shall not exceed 
  7.19  the comparable rate for the governmental subdivision for taxes 
  7.20  payable in 1995.  If a governmental subdivision certifies a levy 
  7.21  for taxes payable in 1996 to the county auditor that would 
  7.22  produce a local tax rate in excess of the limitation established 
  7.23  in this section, the county auditor shall extend only the amount 
  7.24  of taxes that the limitation of this section will permit.  
  7.25     Subd. 4.  [TORT JUDGMENTS AND NATURAL DISASTERS.] A 
  7.26  governmental subdivision may appeal to the commissioner of 
  7.27  revenue for authorization to levy an amount in excess of the 
  7.28  limitation established in this section for the reasons and under 
  7.29  the procedures provided in Minnesota Statutes, section 275.065, 
  7.30  subdivision 6a.  
  7.31     Sec. 5.  [TASK FORCE TO STUDY LOCAL GOVERNMENT SERVICES AND 
  7.32  FINANCES.] 
  7.33     Subdivision 1.  [ESTABLISHMENT; CHARGE.] A task force is 
  7.34  established to study the following issues relating to local 
  7.35  government services and financing: 
  7.36     (1) a proposed definition of core services to be provided 
  8.1   by local governments; 
  8.2      (2) estimates of the costs of providing those services, 
  8.3   including cost variables due to characteristics of the local 
  8.4   government units; 
  8.5      (3) refinement of the mechanism for imposition of an excess 
  8.6   levy by aid distribution councils for the purpose of funding 
  8.7   noncore services within the area covered by the council and for 
  8.8   distribution of the proceeds of the levy as described in section 
  8.9   6; and 
  8.10     (4) implementation of the core services aid to counties, 
  8.11  cities, and towns as described in section 7 at a date to be 
  8.12  determined by the task force. 
  8.13     Subd. 2.  [MEMBERSHIP.] The task force will have 12 members.
  8.14  Six of the members will be appointed by the subcommittee on 
  8.15  committees of the senate committee on rules and administration, 
  8.16  with four of those appointees being members of the majority 
  8.17  caucus and two of those appointees being members of the minority 
  8.18  caucus of the senate.  Six of the members will be appointed by 
  8.19  the speaker of the house of representatives, with four of those 
  8.20  appointees being members of the majority caucus and two of those 
  8.21  appointees being members of the minority caucus of the house of 
  8.22  representatives.  The members of the task force will elect the 
  8.23  chair of the task force. 
  8.24     Subd. 3.  [REPORT TO LEGISLATURE.] The task force must 
  8.25  report to the legislature by January 31, 1997, on a detailed 
  8.26  plan for implementation of a reformed system of financing local 
  8.27  governments.  The plan must incorporate the conclusions of the 
  8.28  task force concerning the issues studied under subdivision 1. 
  8.29     Sec. 6.  [AID DISTRIBUTION COUNCILS.] 
  8.30     Subdivision 1.  [ESTABLISHMENT; MEMBERSHIP.] (a) By 
  8.31  September 1, 1997, the county board of each county in which an 
  8.32  aid distribution council has not been established under section 
  8.33  3 must decide, by resolution, on the size of the aid 
  8.34  distribution council within the county and the process under 
  8.35  which representatives from other units of government will be 
  8.36  selected.  Unless a different membership arrangement is agreed 
  9.1   to by representatives of all local units of government within 
  9.2   the county, each aid distribution council must have an equal 
  9.3   number of:  (1) county commissioners, one of whom must represent 
  9.4   special taxing district interests on the aid distribution 
  9.5   council; (2) city mayors or council members and town 
  9.6   supervisors, with the number of representatives of cities and 
  9.7   towns to be determined in proportion to the distribution of the 
  9.8   population of the county between cities and towns; and (3) 
  9.9   school district board members.  Cities or school districts 
  9.10  located within more than one county are entitled to 
  9.11  representation only on the aid distribution council in their 
  9.12  home county as defined in Minnesota Statutes, section 275.065, 
  9.13  subdivision 1a.  By September 30, 1997, and by September 30 of 
  9.14  each year thereafter, all county commissioners, city mayors and 
  9.15  council members, all town supervisors, and all school board 
  9.16  members within a county must decide on who shall represent them 
  9.17  on the aid distribution council during the council's term, which 
  9.18  ends on the next July 31.  
  9.19     (b) If an aid distribution council has been created under 
  9.20  section 3, that council shall continue to operate as provided 
  9.21  under this section unless it determines by majority resolution 
  9.22  to be terminated and a new council created under this section. 
  9.23     (c) Following creation of the initial aid distribution 
  9.24  council within a county under this section, the size of the 
  9.25  council remains the same until changed by resolution of the 
  9.26  county board, and the council members remain the same until 
  9.27  changed by the appointing group.  If a vacancy occurs on a 
  9.28  council, the appointing authority must fill the vacancy within 
  9.29  30 days in the manner provided for the initial appointment.  No 
  9.30  substantial business of the council may be conducted in those 30 
  9.31  days unless the appointing authority indicates by majority 
  9.32  resolution that the vacancy will not be filled during that term 
  9.33  of the council.  A position left vacant by an appointing 
  9.34  authority at the beginning of an annual council term, or a 
  9.35  vacancy occurring during a term of the council which is not 
  9.36  filled within 30 days, reduces the size of the council for all 
 10.1   purposes. 
 10.2      Subd. 2.  [MEETINGS.] The aid distribution council may meet 
 10.3   periodically throughout each term as the members decide, 
 10.4   provided that between May 1 and July 15 each year the council 
 10.5   must conduct at least one public hearing at which public 
 10.6   comments are allowed.  The county's truth in budgeting notice 
 10.7   must contain information on the location and timing of the 
 10.8   council's public hearing. 
 10.9      Subd. 3.  [LEVIES.] Beginning with taxes levied in 1998, 
 10.10  the aid distribution council in each county may impose a tax on 
 10.11  all taxable property within the county.  The rate of the tax may 
 10.12  not exceed the rate that will produce revenue equal to 25 
 10.13  percent of the cost of providing core services by all local 
 10.14  units of government within the county.  As used in this 
 10.15  subdivision, "local units of government" means counties, cities, 
 10.16  towns, school districts, and all other jurisdictions that impose 
 10.17  a property tax, and "core services" are as defined by the 
 10.18  legislature pursuant to the conclusion of the task forces 
 10.19  created under sections 5 and 8.  The cost of providing core 
 10.20  services is deemed to be equal to the levies imposed by local 
 10.21  units of government to meet the cost of core services only, plus 
 10.22  the aids paid by the state under section 7 and aids paid to 
 10.23  school districts to support core services.  The tax imposed by 
 10.24  the aid distribution council must be implemented under Minnesota 
 10.25  Statutes, chapter 275, as if it were a county levy, but the 
 10.26  proceeds of the tax must be distributed by the county treasurer 
 10.27  to local units of government within the county as allocated by 
 10.28  the aid distribution council.  The aid distribution council must 
 10.29  allocate the proceeds of the levy among the local governments 
 10.30  based on the scoring system described in section 3, subdivision 
 10.31  2. 
 10.32     Subd. 4.  [REPORTS TO COMMISSIONER.] By July 15, 1998, and 
 10.33  each year thereafter, the aid distribution council in each 
 10.34  county shall certify to the commissioner of revenue and to each 
 10.35  taxing authority in the county, the dollar amount of noncore 
 10.36  service levies allocated by the council for payment to each 
 11.1   eligible taxing authority.  The council shall provide a 
 11.2   narrative description of the numerical or other factors used in 
 11.3   any distribution formula adopted by the council, and the 
 11.4   mathematical value or subjective weight given to each factor.  
 11.5   If a council adopts no distribution formula, it must so indicate 
 11.6   in its certification to the commissioner under this 
 11.7   subdivision.  Once made, the council's certification is final, 
 11.8   and any errors shall be compensated for by the county treasurer 
 11.9   through proportionate increases or decreases in the amounts 
 11.10  distributed. 
 11.11     Sec. 7.  [CORE SERVICES AID.] 
 11.12     Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
 11.13  the terms defined in this subdivision have the meanings given 
 11.14  them. 
 11.15     (b) "Local government unit" means a county, statutory or 
 11.16  home rule charter city, or a town. 
 11.17     (c) "Equalized net tax capacity" means the product of (i) 
 11.18  the appropriate net class rates for the year in which the aid is 
 11.19  payable, and (ii) equalized market values for the assessment two 
 11.20  years prior to that in which aid is payable.  "Total net tax 
 11.21  capacity" means the net tax capacities for all property within 
 11.22  the local government unit.  The total net tax capacity used 
 11.23  shall be reduced by the sum of (1) the local government unit's 
 11.24  net tax capacity of commercial industrial property as defined in 
 11.25  Minnesota Statutes, section 473F.02, subdivision 3, multiplied 
 11.26  by the ratio determined pursuant to Minnesota Statutes, section 
 11.27  473F.08, subdivision 6, for the municipality, as defined in 
 11.28  Minnesota Statutes, section 473F.02, subdivision 8, in which the 
 11.29  unique taxing jurisdiction is located, (2) the net tax capacity 
 11.30  of the captured value of tax increment financing districts as 
 11.31  defined in Minnesota Statutes, section 469.177, subdivision 2, 
 11.32  and (3) the net tax capacity of transmission lines deducted from 
 11.33  a local government unit's total net tax capacity under Minnesota 
 11.34  Statutes, section 273.425.  For purposes of determining the net 
 11.35  tax capacity of property referred to in clauses (1), (2), and 
 11.36  (3), the net tax capacity shall be multiplied by the ratio of 
 12.1   the highest class rate for class 3a property for taxes payable 
 12.2   in the year in which the aid is payable to the highest class 
 12.3   rate for class 3a property in the prior year.  Net tax capacity 
 12.4   cannot be less than zero. 
 12.5      (d) "Equalized market values" are market values that have 
 12.6   been equalized by dividing the assessor's estimated market value 
 12.7   for the second year prior to that in which the aid is payable by 
 12.8   the assessment sales ratios determined by class in the 
 12.9   assessment sales ratio study conducted by the department of 
 12.10  revenue pursuant to Minnesota Statutes, section 124.2131, in the 
 12.11  second year prior to that in which the aid is payable.  The 
 12.12  equalized market values equal the unequalized market values 
 12.13  divided by the assessment sales ratio. 
 12.14     (e) "Core services local effort" is equal to five percent 
 12.15  of the equalized net tax capacity of the local government unit. 
 12.16     Subd. 2.  [AID AMOUNT.] Aid shall be paid to each county, 
 12.17  city, and town in an amount equal to 40 percent of that local 
 12.18  government unit's cost for providing core services in excess of 
 12.19  its core services local effort. 
 12.20     Subd. 3.  [PAYMENTS; APPROPRIATION.] The commissioner of 
 12.21  revenue shall make the payments required under this section in 
 12.22  two equal installments on July 20 and December 26 annually.  The 
 12.23  amount necessary to make the payments is appropriated annually 
 12.24  from the general fund to the commissioner of revenue. 
 12.25     Sec. 8.  [TASK FORCE TO STUDY EDUCATION REFORMS.] 
 12.26     Subdivision 1.  [ESTABLISHMENT; CHARGE.] A task force is 
 12.27  established to study the recommendations made by the coalition 
 12.28  for education reform and accountability under Laws 1993, chapter 
 12.29  224, article 1, section 35. 
 12.30     Subd. 2.  [MEMBERSHIP.] The task force will have 12 members.
 12.31  Six of the members will be appointed by the subcommittee on 
 12.32  committees of the senate committee on rules and administration, 
 12.33  with four of those appointees being members of the majority 
 12.34  caucus and two of those appointees being members of the minority 
 12.35  caucus of the senate.  Six of the members will be appointed by 
 12.36  the speaker of the house of representatives, with four of those 
 13.1   appointees being members of the majority caucus and two of those 
 13.2   appointees being members of the minority caucus of the house of 
 13.3   representatives.  The members of the task force will elect the 
 13.4   chair of the task force. 
 13.5      Subd. 3.  [REPORT TO LEGISLATURE.] The task force must 
 13.6   report to the legislature by January 31, 1997, on a detailed 
 13.7   plan for implementation of a reformed system of providing and 
 13.8   financing education.  The plan must reflect consideration of the 
 13.9   conclusions of the coalition for education reform and 
 13.10  accountability, together with modifications found to be 
 13.11  advisable by the task force.  If the constitutional amendment 
 13.12  proposed in article 1 is adopted at the 1996 election, the 
 13.13  report must include draft legislation proposing a definition of 
 13.14  "core services" for which funding will be provided as required 
 13.15  in the constitutional amendment. 
 13.16     Sec. 9.  [REPEALER.] 
 13.17     Minnesota Statutes 1994, sections 124A.02, subdivisions 16 
 13.18  and 24; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, 1i, 
 13.19  and 3b; 124A.034; 124A.035; 124A.036; 124A.04; 124A.22, 
 13.20  subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 124A.225; 124A.23; 
 13.21  124A.24; 124A.26; 124A.28; 124A.29, subdivision 1; 273.138; 
 13.22  273.1398; 273.1399; 273.166; 477A.011; 477A.012; 477A.0121; 
 13.23  477A.0122; 477A.013; 477A.0132; 477A.014; 477A.015; and 477A.03, 
 13.24  are repealed. 
 13.25     Sec. 10.  [EFFECTIVE DATE.] 
 13.26     Section 4 is effective for property taxes levied in 1995, 
 13.27  payable in 1996 only.  Sections 5 and 8 are effective the day 
 13.28  following final enactment.  Section 7 is effective for aids paid 
 13.29  in 1997 and later years.  Section 9 is effective June 30, 1997.