SF 3806

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

  1.1                          A bill for an act 
  1.2             relating to the financing of government in this state; 
  1.3             providing for property tax homestead treatment; 
  1.4             providing for certain property tax exemptions, 
  1.5             credits, assessments, appeals, notices, and refunds; 
  1.6             reducing certain property tax class rates; changing 
  1.7             and providing for certain payments in lieu of taxes; 
  1.8             changing provisions relating to tax increment 
  1.9             financing, housing improvement areas, and county 
  1.10            housing authorities; authorizing election by local 
  1.11            governments to provide truth in taxation information 
  1.12            on the Internet; extending senior citizen property tax 
  1.13            deferral to certain taxes, special assessments, 
  1.14            penalties, and interest; providing for certain special 
  1.15            assessments by counties; modifying or increasing 
  1.16            certain aids to local governments; providing special 
  1.17            authority to certain political subdivisions; changing 
  1.18            certain forfeiture provision relating to plats; 
  1.19            authorizing issuance of certain obligations; providing 
  1.20            for a study; appropriating money; amending Minnesota 
  1.21            Statutes 1998, sections 97A.061, by adding a 
  1.22            subdivision; 273.124, by adding a subdivision; 273.37, 
  1.23            subdivision 3; 275.065, subdivision 3, and by adding 
  1.24            subdivisions; 275.066; 276.19, subdivision 1; 290B.04, 
  1.25            by adding a subdivision; 290B.05, subdivision 3; 
  1.26            290B.07; 290B.08, subdivisions 1 and 2; 290B.09, 
  1.27            subdivision 2; 428A.11, by adding subdivisions; 
  1.28            428A.13, subdivisions 1 and 3; 428A.14, subdivision 1; 
  1.29            428A.15; 428A.16; 428A.17; 428A.19; 428A.21; 429.011, 
  1.30            subdivisions 2a and 5; 429.021, subdivision 1; 
  1.31            429.031, subdivision 1; 469.003, subdivision 5; 
  1.32            469.006, subdivisions 1 and 2; 469.011, subdivision 4; 
  1.33            469.040, by adding a subdivision; 469.174, subdivision 
  1.34            10; 469.175, subdivisions 5 and 6; 469.176, 
  1.35            subdivision 1b; 469.1763, by adding a subdivision; 
  1.36            473.39, by adding a subdivision; 477A.011, by adding a 
  1.37            subdivision; 477A.0121, subdivision 4; 477A.03, by 
  1.38            adding a subdivision; 477A.06, subdivision 2; 477A.11, 
  1.39            subdivision 1; 477A.12; 477A.13; and 477A.14; 
  1.40            Minnesota Statutes 1999 Supplement, sections 123B.54; 
  1.41            272.02, subdivision 39, and by adding a subdivision; 
  1.42            273.124, subdivisions 1 and 14; 273.13, subdivisions 
  1.43            24 and 25; 273.1382, subdivision 1b; 273.1398, 
  1.44            subdivisions 1a and 4a; 275.065, subdivision 5a; 
  1.45            275.71, subdivision 4; 290B.03, subdivision 1; 
  1.46            290B.05, subdivision 1; 473.39, subdivision 1g; 
  2.1             477A.03, subdivision 2; 477A.06, subdivision 1; and 
  2.2             505.08, subdivision 3; Laws 1995 First Special Session 
  2.3             chapter 3, article 15, section 25; proposing coding 
  2.4             for new law in Minnesota Statutes, chapters 273; 278; 
  2.5             and 477A; repealing Minnesota Statutes 1998, section 
  2.6             469.175, subdivision 6a. 
  2.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.8                              ARTICLE 1
  2.9                       PROPERTY TAXES AND AIDS
  2.10     Section 1.  Minnesota Statutes 1998, section 97A.061, is 
  2.11  amended by adding a subdivision to read: 
  2.12     Subd. 4.  [OFFSET OF PAYMENTS.] Payments to a county or 
  2.13  town under this section must be reduced by the amount of payment 
  2.14  to that county or town under section 477A.12 in the same year. 
  2.15     EFFECTIVE DATE:  This section is effective for payments 
  2.16  made in calendar year 2001 and thereafter. 
  2.17     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  2.18  123B.54, is amended to read: 
  2.19     123B.54 [DEBT SERVICE APPROPRIATION.] 
  2.20     (a) $33,165,000 in fiscal year 2000, $32,057,000 in fiscal 
  2.21  year 2001, and $31,280,000 in fiscal year 2002 and each year 
  2.22  thereafter is appropriated from the general fund to the 
  2.23  commissioner of children, families, and learning for payment of 
  2.24  debt service equalization aid under section 123B.53.  The 2002 
  2.25  appropriation includes $3,201,000 for 2001 and $29,079,000 for 
  2.26  2002. 
  2.27     (b) The appropriations in paragraph (a) must be reduced by 
  2.28  the amount of any money specifically appropriated for the same 
  2.29  purpose in any year from any state fund. 
  2.30     (c) In addition to any other money specifically 
  2.31  appropriated for this section, $10,000,000 is appropriated from 
  2.32  the general fund to the commissioner of children, families, and 
  2.33  learning each year beginning in fiscal year 2002 for the 
  2.34  purposes of this section. 
  2.35     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
  2.36  272.02, subdivision 39, is amended to read: 
  2.37     Subd. 39.  [ECONOMIC DEVELOPMENT; PUBLIC PURPOSE.] The 
  2.38  holding of property by a political subdivision of the state for 
  3.1   later resale for economic development purposes shall be 
  3.2   considered a public purpose in accordance with subdivision 8 for 
  3.3   a period not to exceed eight years for property located either: 
  3.4      (1) in the metropolitan area as defined in section 473.121; 
  3.5   or 
  3.6      (2) in a city of over 10,000 population located outside of 
  3.7   the metropolitan area, 
  3.8   and 15 years in the remainder of the state.  
  3.9      The holding of property by a political subdivision of the 
  3.10  state for later resale (1) which is purchased or held for 
  3.11  housing purposes, or (2) which meets the conditions described in 
  3.12  section 469.174, subdivision 10, shall be considered a public 
  3.13  purpose in accordance with subdivision 8.  
  3.14     The governing body of the political subdivision which 
  3.15  acquires property which is subject to this subdivision shall 
  3.16  after the purchase of the property certify to the city or county 
  3.17  assessor whether the property is held for economic development 
  3.18  purposes or housing purposes, or whether it meets the conditions 
  3.19  of section 469.174, subdivision 10.  If the property is acquired 
  3.20  for economic development purposes and buildings or other 
  3.21  improvements are constructed after acquisition of the property, 
  3.22  and if more than one-half of the floor space of the buildings or 
  3.23  improvements which is available for lease to or use by a private 
  3.24  individual, corporation, or other entity is leased to or 
  3.25  otherwise used by a private individual, corporation, or other 
  3.26  entity the provisions of this subdivision shall not apply to the 
  3.27  property.  This subdivision shall not create an exemption from 
  3.28  section 272.01, subdivision 2; 272.68; 273.19; or 469.040, 
  3.29  subdivision 3; or other provision of law providing for the 
  3.30  taxation of or for payments in lieu of taxes for publicly held 
  3.31  property which is leased, loaned, or otherwise made available 
  3.32  and used by a private person. 
  3.33     EFFECTIVE DATE:  This section is effective for taxes levied 
  3.34  in 2000, payable in 2001, and thereafter. 
  3.35     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
  3.36  272.02, is amended by adding a subdivision to read: 
  4.1      Subd. 44.  [ELECTRIC GENERATION FACILITY PERSONAL 
  4.2   PROPERTY.] Notwithstanding subdivision 9, clause (a), attached 
  4.3   machinery and other personal property which is part of a 
  4.4   simple-cycle combustion-turbine electric generation facility 
  4.5   that exceeds 250 megawatts of installed capacity and that meets 
  4.6   the requirements of this subdivision is exempt.  At the time of 
  4.7   construction, the facility must:  
  4.8      (1) utilize natural gas as a primary fuel; 
  4.9      (2) be located within 20 miles of parallel existing 16-inch 
  4.10  and 12-inch (outside diameter) natural gas pipelines and a 
  4.11  345-kilovolt high-voltage electric transmission line; and 
  4.12     (3) be designed to provide peaking, emergency backup, or 
  4.13  contingency services, and have received a certificate of need 
  4.14  pursuant to section 216B.243 demonstrating demand for its 
  4.15  capacity.  
  4.16  Construction of the facility must be commenced after January 1, 
  4.17  2000, and before January 1, 2004.  Property eligible for this 
  4.18  exemption does not include electric transmission lines and 
  4.19  interconnections or gas pipelines and interconnections 
  4.20  appurtenant to the property or the facility. 
  4.21     EFFECTIVE DATE:  This section is effective for taxes levied 
  4.22  in 2001, payable in 2002, and thereafter. 
  4.23     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
  4.24  273.124, subdivision 1, is amended to read: 
  4.25     Subdivision 1.  [GENERAL RULE.] (a) Residential real estate 
  4.26  that is occupied and used for the purposes of a homestead by its 
  4.27  owner, who must be a Minnesota resident, is a residential 
  4.28  homestead.  
  4.29     Agricultural land, as defined in section 273.13, 
  4.30  subdivision 23, that is occupied and used as a homestead by its 
  4.31  owner, who must be a Minnesota resident, is an agricultural 
  4.32  homestead. 
  4.33     Dates for establishment of a homestead and homestead 
  4.34  treatment provided to particular types of property are as 
  4.35  provided in this section.  
  4.36     Property of held by a trustee, beneficiary, or grantor of 
  5.1   under a trust is not disqualified from receiving eligible for 
  5.2   homestead benefits classification if the homestead requirements 
  5.3   under this chapter are satisfied. 
  5.4      The assessor shall require proof, as provided in 
  5.5   subdivision 13, of the facts upon which classification as a 
  5.6   homestead may be determined.  Notwithstanding any other law, the 
  5.7   assessor may at any time require a homestead application to be 
  5.8   filed in order to verify that any property classified as a 
  5.9   homestead continues to be eligible for homestead status.  
  5.10  Notwithstanding any other law to the contrary, the department of 
  5.11  revenue may, upon request from an assessor, verify whether an 
  5.12  individual who is requesting or receiving homestead 
  5.13  classification has filed a Minnesota income tax return as a 
  5.14  resident for the most recent taxable year for which the 
  5.15  information is available. 
  5.16     When there is a name change or a transfer of homestead 
  5.17  property, the assessor may reclassify the property in the next 
  5.18  assessment unless a homestead application is filed to verify 
  5.19  that the property continues to qualify for homestead 
  5.20  classification. 
  5.21     (b) For purposes of this section, homestead property shall 
  5.22  include property which is used for purposes of the homestead but 
  5.23  is separated from the homestead by a road, street, lot, 
  5.24  waterway, or other similar intervening property.  The term "used 
  5.25  for purposes of the homestead" shall include but not be limited 
  5.26  to uses for gardens, garages, or other outbuildings commonly 
  5.27  associated with a homestead, but shall not include vacant land 
  5.28  held primarily for future development.  In order to receive 
  5.29  homestead treatment for the noncontiguous property, the owner 
  5.30  must use the property for the purposes of the homestead, and 
  5.31  must apply to the assessor, both by the deadlines given in 
  5.32  subdivision 9.  After initial qualification for the homestead 
  5.33  treatment, additional applications for subsequent years are not 
  5.34  required. 
  5.35     (c) Residential real estate that is occupied and used for 
  5.36  purposes of a homestead by a relative of the owner is a 
  6.1   homestead but only to the extent of the homestead treatment that 
  6.2   would be provided if the related owner occupied the property.  
  6.3   For purposes of this paragraph and paragraph (g), "relative" 
  6.4   means a parent, stepparent, child, stepchild, grandparent, 
  6.5   grandchild, brother, sister, uncle, aunt, nephew, or niece.  
  6.6   This relationship may be by blood or marriage.  Property that 
  6.7   has been classified as seasonal recreational residential 
  6.8   property at any time during which it has been owned by the 
  6.9   current owner or spouse of the current owner will not be 
  6.10  reclassified as a homestead unless it is occupied as a homestead 
  6.11  by the owner; this prohibition also applies to property that, in 
  6.12  the absence of this paragraph, would have been classified as 
  6.13  seasonal recreational residential property at the time when the 
  6.14  residence was constructed.  Neither the related occupant nor the 
  6.15  owner of the property may claim a property tax refund under 
  6.16  chapter 290A for a homestead occupied by a relative.  In the 
  6.17  case of a residence located on agricultural land, only the 
  6.18  house, garage, and immediately surrounding one acre of land 
  6.19  shall be classified as a homestead under this paragraph, except 
  6.20  as provided in paragraph (d). 
  6.21     (d) Agricultural property that is occupied and used for 
  6.22  purposes of a homestead by a relative of the owner, is a 
  6.23  homestead, only to the extent of the homestead treatment that 
  6.24  would be provided if the related owner occupied the property, 
  6.25  and only if all of the following criteria are met: 
  6.26     (1) the relative who is occupying the agricultural property 
  6.27  is a son, daughter, grandson, granddaughter, father, or mother 
  6.28  of the owner of the agricultural property or a son or, daughter, 
  6.29  grandson, or granddaughter of the spouse of the owner of the 
  6.30  agricultural property; 
  6.31     (2) the owner of the agricultural property must be a 
  6.32  Minnesota resident; 
  6.33     (3) the owner of the agricultural property must not receive 
  6.34  homestead treatment on any other agricultural property in 
  6.35  Minnesota; and 
  6.36     (4) the owner of the agricultural property is limited to 
  7.1   only one agricultural homestead per family under this paragraph. 
  7.2      Neither the related occupant nor the owner of the property 
  7.3   may claim a property tax refund under chapter 290A for a 
  7.4   homestead occupied by a relative qualifying under this 
  7.5   paragraph.  For purposes of this paragraph, "agricultural 
  7.6   property" means the house, garage, other farm buildings and 
  7.7   structures, and agricultural land. 
  7.8      Application must be made to the assessor by the owner of 
  7.9   the agricultural property to receive homestead benefits under 
  7.10  this paragraph.  The assessor may require the necessary proof 
  7.11  that the requirements under this paragraph have been met. 
  7.12     (e) In the case of property owned by a property owner who 
  7.13  is married, the assessor must not deny homestead treatment in 
  7.14  whole or in part if only one of the spouses occupies the 
  7.15  property and the other spouse is absent due to:  (1) marriage 
  7.16  dissolution proceedings, (2) legal separation, (3) employment or 
  7.17  self-employment in another location, or (4) other personal 
  7.18  circumstances causing the spouses to live separately, not 
  7.19  including an intent to obtain two homestead classifications for 
  7.20  property tax purposes.  To qualify under clause (3), the 
  7.21  spouse's place of employment or self-employment must be at least 
  7.22  50 miles distant from the other spouse's place of employment, 
  7.23  and the homesteads must be at least 50 miles distant from each 
  7.24  other.  Homestead treatment, in whole or in part, shall not be 
  7.25  denied to the owner's spouse who previously occupied the 
  7.26  residence with the owner if the absence of the owner is due to 
  7.27  one of the exceptions provided in this paragraph. 
  7.28     (f) The assessor must not deny homestead treatment in whole 
  7.29  or in part if: 
  7.30     (1) in the case of a property owner who is not married, the 
  7.31  owner is absent due to residence in a nursing home or boarding 
  7.32  care facility and the property is not otherwise occupied; or 
  7.33     (2) in the case of a property owner who is married, the 
  7.34  owner or the owner's spouse or both are absent due to residence 
  7.35  in a nursing home or boarding care facility and the property is 
  7.36  not occupied or is occupied only by the owner's spouse. 
  8.1      (g) If an individual is purchasing property with the intent 
  8.2   of claiming it as a homestead and is required by the terms of 
  8.3   the financing agreement to have a relative shown on the deed as 
  8.4   a coowner, the assessor shall allow a full homestead 
  8.5   classification.  This provision only applies to first-time 
  8.6   purchasers, whether married or single, or to a person who had 
  8.7   previously been married and is purchasing as a single individual 
  8.8   for the first time.  The application for homestead benefits must 
  8.9   be on a form prescribed by the commissioner and must contain the 
  8.10  data necessary for the assessor to determine if full homestead 
  8.11  benefits are warranted. 
  8.12     (h) If residential or agricultural real estate is occupied 
  8.13  and used for purposes of a homestead by a child of a deceased 
  8.14  owner and the property is subject to jurisdiction of probate 
  8.15  court, the child shall receive relative homestead classification 
  8.16  under paragraph (c) or (d) to the same extent they would be 
  8.17  entitled to it if the owner was still living, until the probate 
  8.18  is completed.  For purposes of this paragraph, "child" includes 
  8.19  a relationship by blood or by marriage. 
  8.20     EFFECTIVE DATE:  This section is effective for taxes levied 
  8.21  in 2000, payable in 2001, and thereafter. 
  8.22     Sec. 6.  Minnesota Statutes 1999 Supplement, section 
  8.23  273.124, subdivision 14, is amended to read: 
  8.24     Subd. 14.  [AGRICULTURAL HOMESTEADS; SPECIAL PROVISIONS.] 
  8.25  (a) Real estate of less than ten acres that is the homestead of 
  8.26  its owner must be classified as class 2a under section 273.13, 
  8.27  subdivision 23, paragraph (a), if:  
  8.28     (1) the parcel on which the house is located is contiguous 
  8.29  on at least two sides to (i) agricultural land, (ii) land owned 
  8.30  or administered by the United States Fish and Wildlife Service, 
  8.31  or (iii) land administered by the department of natural 
  8.32  resources on which in lieu taxes are paid under sections 477A.11 
  8.33  to 477A.14; 
  8.34     (2) its owner also owns a noncontiguous parcel of 
  8.35  agricultural land that is at least 20 acres; 
  8.36     (3) the noncontiguous land is located not farther than four 
  9.1   townships or cities, or a combination of townships or cities 
  9.2   from the homestead; and 
  9.3      (4) the agricultural use value of the noncontiguous land 
  9.4   and farm buildings is equal to at least 50 percent of the market 
  9.5   value of the house, garage, and one acre of land. 
  9.6      Homesteads initially classified as class 2a under the 
  9.7   provisions of this paragraph shall remain classified as class 
  9.8   2a, irrespective of subsequent changes in the use of adjoining 
  9.9   properties, as long as the homestead remains under the same 
  9.10  ownership, the owner owns a noncontiguous parcel of agricultural 
  9.11  land that is at least 20 acres, and the agricultural use value 
  9.12  qualifies under clause (4).  Homestead classification under this 
  9.13  paragraph is limited to property that qualified under this 
  9.14  paragraph for the 1998 assessment. 
  9.15     (b) Agricultural property consisting of at least 40 acres 
  9.16  shall be classified homestead, to the same extent as other 
  9.17  agricultural homestead property, if all of the following 
  9.18  criteria are met: 
  9.19     (1) the owner is actively farming the agricultural 
  9.20  property; 
  9.21     (2) the owner of the agricultural property is a Minnesota 
  9.22  resident; 
  9.23     (3) neither the owner nor the spouse of the agricultural 
  9.24  property owner claims another agricultural homestead in 
  9.25  Minnesota; and 
  9.26     (4) the owner does not live farther than four townships or 
  9.27  cities, or a combination of four townships or cities, from the 
  9.28  agricultural property. 
  9.29  As used in this paragraph, "owner" includes a shareholder of a 
  9.30  family farm corporation that owns the property or a partner in a 
  9.31  family farm partnership that owns the property. 
  9.32     (c) Except as provided in paragraph (e), noncontiguous land 
  9.33  shall be included as part of a homestead under section 273.13, 
  9.34  subdivision 23, paragraph (a), only if the homestead is 
  9.35  classified as class 2a and the detached land is located in the 
  9.36  same township or city, or not farther than four townships or 
 10.1   cities or combination thereof from the homestead.  Any taxpayer 
 10.2   of these noncontiguous lands must notify the county assessor 
 10.3   that the noncontiguous land is part of the taxpayer's homestead, 
 10.4   and, if the homestead is located in another county, the taxpayer 
 10.5   must also notify the assessor of the other county. 
 10.6      (d) Agricultural land used for purposes of a homestead and 
 10.7   actively farmed by a person holding a vested remainder interest 
 10.8   in it must be classified as a homestead under section 273.13, 
 10.9   subdivision 23, paragraph (a).  If agricultural land is 
 10.10  classified class 2a, any other dwellings on the land used for 
 10.11  purposes of a homestead by persons holding vested remainder 
 10.12  interests who are actively engaged in farming the property, and 
 10.13  up to one acre of the land surrounding each homestead and 
 10.14  reasonably necessary for the use of the dwelling as a home, must 
 10.15  also be assessed class 2a. 
 10.16     (e) Agricultural land and buildings that were class 2a 
 10.17  homestead property under section 273.13, subdivision 23, 
 10.18  paragraph (a), for the 1997 assessment shall remain classified 
 10.19  as agricultural homesteads for subsequent assessments if:  
 10.20     (1) the property owner abandoned the homestead dwelling 
 10.21  located on the agricultural homestead as a result of the April 
 10.22  1997 floods; 
 10.23     (2) the property is located in the county of Polk, Clay, 
 10.24  Kittson, Marshall, Norman, or Wilkin; 
 10.25     (3) the agricultural land and buildings remain under the 
 10.26  same ownership for the current assessment year as existed for 
 10.27  the 1997 assessment year and continue to be used for 
 10.28  agricultural purposes; 
 10.29     (4) the dwelling occupied by the owner is located in 
 10.30  Minnesota and is within 30 miles of one of the parcels of 
 10.31  agricultural land that is owned by the taxpayer; and 
 10.32     (5) the owner notifies the county assessor that the 
 10.33  relocation was due to the 1997 floods, and the owner furnishes 
 10.34  the assessor any information deemed necessary by the assessor in 
 10.35  verifying the change in dwelling.  Further notifications to the 
 10.36  assessor are not required if the property continues to meet all 
 11.1   the requirements in this paragraph and any dwellings on the 
 11.2   agricultural land remain uninhabited. 
 11.3      (f) Agricultural land and buildings that were class 2a 
 11.4   homestead property under section 273.13, subdivision 23, 
 11.5   paragraph (a), for the 1998 assessment shall remain classified 
 11.6   agricultural homesteads for subsequent assessments if: 
 11.7      (1) the property owner abandoned the homestead dwelling 
 11.8   located on the agricultural homestead as a result of damage 
 11.9   caused by a March 29, 1998, tornado; 
 11.10     (2) the property is located in the county of Blue Earth, 
 11.11  Brown, Cottonwood, LeSueur, Nicollet, Nobles, or Rice; 
 11.12     (3) the agricultural land and buildings remain under the 
 11.13  same ownership for the current assessment year as existed for 
 11.14  the 1998 assessment year; 
 11.15     (4) the dwelling occupied by the owner is located in this 
 11.16  state and is within 50 miles of one of the parcels of 
 11.17  agricultural land that is owned by the taxpayer; and 
 11.18     (5) the owner notifies the county assessor that the 
 11.19  relocation was due to a March 29, 1998, tornado, and the owner 
 11.20  furnishes the assessor any information deemed necessary by the 
 11.21  assessor in verifying the change in homestead dwelling.  For 
 11.22  taxes payable in 1999, the owner must notify the assessor by 
 11.23  December 1, 1998.  Further notifications to the assessor are not 
 11.24  required if the property continues to meet all the requirements 
 11.25  in this paragraph and any dwellings on the agricultural land 
 11.26  remain uninhabited. 
 11.27     EFFECTIVE DATE:  This section is effective for taxes levied 
 11.28  in 2000, payable in 2001, and thereafter. 
 11.29     Sec. 7.  Minnesota Statutes 1998, section 273.124, is 
 11.30  amended by adding a subdivision to read: 
 11.31     Subd. 21.  [TRUST PROPERTY; HOMESTEAD.] Real property held 
 11.32  by a trustee under a trust is eligible for classification as 
 11.33  homestead property if: 
 11.34     (1) the grantor or surviving spouse of the grantor of the 
 11.35  trust occupies and uses the property as a homestead; 
 11.36     (2) a relative or surviving relative of the grantor who 
 12.1   meets the requirements of subdivision 1, paragraph (c), in the 
 12.2   case of residential real estate; or subdivision 1, paragraph 
 12.3   (d), in the case of agricultural property, occupies and uses the 
 12.4   property as a homestead; 
 12.5      (3) a family farm corporation, a partnership operating a 
 12.6   family farm, or a joint farm venture operating a family farm 
 12.7   rents the property held by a trustee under a trust, and a 
 12.8   shareholder or partner of the corporation, partnership, or joint 
 12.9   farm venture occupies and uses the property as a homestead, and 
 12.10  is actively farming the property on behalf of the corporation, 
 12.11  partnership, or joint farm venture; or 
 12.12     (4) a person who has received homestead classification for 
 12.13  property taxes payable in 2000 on the basis of an unqualified 
 12.14  legal right under the terms of the trust agreement to occupy the 
 12.15  property as that person's homestead and who continues to use the 
 12.16  property as a homestead. 
 12.17     For purposes of this subdivision, "grantor" is defined as 
 12.18  the person creating or establishing a testamentary, inter Vivos, 
 12.19  revocable or irrevocable trust by written instrument or through 
 12.20  the exercise of a power of appointment. 
 12.21     EFFECTIVE DATE:  This section is effective for taxes levied 
 12.22  in 2000, payable in 2001, and thereafter. 
 12.23     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
 12.24  273.13, subdivision 24, is amended to read: 
 12.25     Subd. 24.  [CLASS 3.] (a) Commercial and industrial 
 12.26  property and utility real and personal property is class 3a.  
 12.27  Each parcel of real property has a class rate of 2.4 percent of 
 12.28  the first tier of market value, and 3.4 percent of the remaining 
 12.29  market value, except that in the case of contiguous parcels of 
 12.30  property owned by the same person or entity, only the value 
 12.31  equal to the first-tier value of the contiguous parcels 
 12.32  qualifies for the reduced class rate.  For the purposes of this 
 12.33  subdivision, the first tier means the first $150,000 of market 
 12.34  value.  Real property owned in fee by a utility for transmission 
 12.35  line right-of-way shall be classified at the class rate for the 
 12.36  higher tier.  All personal property shall be classified at the 
 13.1   class rate for the higher tier.  For purposes of this 
 13.2   subdivision "personal property" means tools, implements, and 
 13.3   machinery of an electric generating, transmission, or 
 13.4   distribution system, or a pipeline system transporting or 
 13.5   distributing water, gas, crude oil, or petroleum products or 
 13.6   mains and pipes used in the distribution of steam or hot or 
 13.7   chilled water for heating or cooling buildings, which are 
 13.8   fixtures. 
 13.9      For purposes of this paragraph, parcels are considered to 
 13.10  be contiguous even if they are separated from each other by a 
 13.11  road, street, vacant lot, waterway, or other similar intervening 
 13.12  type of property. 
 13.13     (b) Employment property defined in section 469.166, during 
 13.14  the period provided in section 469.170, shall constitute class 
 13.15  3b.  The class rates for class 3b property are determined under 
 13.16  paragraph (a). 
 13.17     (c)(1) Subject to the limitations of clause (2), structures 
 13.18  which are (i) located on property classified as class 3a, (ii) 
 13.19  constructed under an initial building permit issued after 
 13.20  January 2, 1996, (iii) located in a transit zone as defined 
 13.21  under section 473.3915, subdivision 3, (iv) located within the 
 13.22  boundaries of a school district, and (v) not primarily used for 
 13.23  retail or transient lodging purposes, shall have a class rate 
 13.24  equal to the lesser of 2.975 percent or the class rate of the 
 13.25  second tier of the commercial property rate under paragraph (a) 
 13.26  on any portion of the market value that does not qualify for the 
 13.27  first tier class rate under paragraph (a).  As used in item (v), 
 13.28  a structure is primarily used for retail or transient lodging 
 13.29  purposes if over 50 percent of its square footage is used for 
 13.30  those purposes.  A class rate equal to the lesser of 2.975 
 13.31  percent or the class rate of the second tier of the commercial 
 13.32  property class rate under paragraph (a) shall also apply to 
 13.33  improvements to existing structures that meet the requirements 
 13.34  of items (i) to (v) if the improvements are constructed under an 
 13.35  initial building permit issued after January 2, 1996, even if 
 13.36  the remainder of the structure was constructed prior to January 
 14.1   2, 1996.  For the purposes of this paragraph, a structure shall 
 14.2   be considered to be located in a transit zone if any portion of 
 14.3   the structure lies within the zone.  If any property once 
 14.4   eligible for treatment under this paragraph ceases to remain 
 14.5   eligible due to revisions in transit zone boundaries, the 
 14.6   property shall continue to receive treatment under this 
 14.7   paragraph for a period of three years. 
 14.8      (2) This clause applies to any structure qualifying for the 
 14.9   transit zone reduced class rate under clause (1) on January 2, 
 14.10  1999, or any structure meeting any of the qualification criteria 
 14.11  in item (i) and otherwise qualifying for the transit zone 
 14.12  reduced class rate under clause (1).  Such a structure continues 
 14.13  to receive the transit zone reduced class rate until the 
 14.14  occurrence of one of the events in item (ii).  Property 
 14.15  qualifying under item (i)(D), that is located outside of a city 
 14.16  of the first class, qualifies for the transit zone reduced class 
 14.17  rate as provided in that item.  Property qualifying under item 
 14.18  (i)(E) qualifies for the transit zone reduced class rate as 
 14.19  provided in that item. 
 14.20     (i) A structure qualifies for the rate in this clause if it 
 14.21  is: 
 14.22     (A) property for which a building permit was issued before 
 14.23  December 31, 1998; or 
 14.24     (B) property for which a building permit was issued before 
 14.25  June 30, 2001, if: 
 14.26     (I) at least 50 percent of the land on which the structure 
 14.27  is to be built has been acquired or is the subject of signed 
 14.28  purchase agreements or signed options as of March 15, 1998, by 
 14.29  the entity that proposes construction of the project or an 
 14.30  affiliate of the entity; 
 14.31     (II) signed agreements have been entered into with one 
 14.32  entity or with affiliated entities to lease for the account of 
 14.33  the entity or affiliated entities at least 50 percent of the 
 14.34  square footage of the structure or the owner of the structure 
 14.35  will occupy at least 50 percent of the square footage of the 
 14.36  structure; and 
 15.1      (III) one of the following requirements is met: 
 15.2      the project proposer has submitted the completed data 
 15.3   portions of an environmental assessment worksheet by December 
 15.4   31, 1998; or 
 15.5      a notice of determination of adequacy of an environmental 
 15.6   impact statement has been published by April 1, 1999; or 
 15.7      an alternative urban areawide review has been completed by 
 15.8   April 1, 1999; or 
 15.9      (C) property for which a building permit is issued before 
 15.10  July 30, 1999, if: 
 15.11     (I) at least 50 percent of the land on which the structure 
 15.12  is to be built has been acquired or is the subject of signed 
 15.13  purchase agreements as of March 31, 1998, by the entity that 
 15.14  proposes construction of the project or an affiliate of the 
 15.15  entity; 
 15.16     (II) a signed agreement has been entered into between the 
 15.17  building developer and a tenant to lease for its own account at 
 15.18  least 200,000 square feet of space in the building; 
 15.19     (III) a signed letter of intent is entered into by July 1, 
 15.20  1998, between the building developer and the tenant to lease the 
 15.21  space for its own account; and 
 15.22     (IV) the environmental review process required by state law 
 15.23  was commenced by December 31, 1998; 
 15.24     (D) property for which an irrevocable letter of credit with 
 15.25  a housing and redevelopment authority was signed before December 
 15.26  31, 1998.  The structure shall receive the transit zone reduced 
 15.27  class rate during construction and for the duration of time that 
 15.28  the original tenants remain in the building.  Any unoccupied net 
 15.29  leasable square footage that is not leased within 36 months 
 15.30  after the certificate of occupancy has been issued for the 
 15.31  building shall not be eligible to receive the reduced class 
 15.32  rate.  This reduced class rate applies only if the a qualifying 
 15.33  entity that constructed the structure continues to own the 
 15.34  property; 
 15.35     (E) property, located in a city of the first class, and for 
 15.36  which the building permits for the excavation, the parking ramp, 
 16.1   and the office tower were issued prior to April 1, 1999, shall 
 16.2   receive the reduced class rate during construction and for the 
 16.3   first five assessment years immediately following its initial 
 16.4   occupancy provided that, when completed, at least 25 percent of 
 16.5   the net leasable square footage must be occupied by the a 
 16.6   qualifying entity or the parent entity constructing the 
 16.7   structure each year during this time period.  In order to 
 16.8   receive the reduced class rate on the structure in any 
 16.9   subsequent assessment years, at least 50 percent of the rentable 
 16.10  square footage must be occupied by the a qualifying entity or 
 16.11  the parent entity that constructed the structure.  This reduced 
 16.12  class rate applies only if the a qualifying entity or the parent 
 16.13  entity that constructed the structure continues to own the 
 16.14  property. 
 16.15     (ii) A structure specified by this clause, other than a 
 16.16  structure qualifying under clause (i)(D) or (E), shall continue 
 16.17  to receive the transit zone reduced class rate until the 
 16.18  occurrence of one of the following events: 
 16.19     (A) if the structure upon initial occupancy will be owner 
 16.20  occupied by the entity initially constructing the structure or 
 16.21  an affiliated entity, the structure receives the reduced class 
 16.22  rate until the structure ceases to be at least 50 percent 
 16.23  occupied by the entity or an affiliated entity, provided, if the 
 16.24  portion of the structure occupied by that entity or an affiliate 
 16.25  of the entity is less than 85 percent, the transit zone class 
 16.26  rate reduction for the portion of structure not so occupied 
 16.27  terminates upon the leasing of such space to any nonaffiliated 
 16.28  entity; or 
 16.29     (B) if the structure is leased by a single entity or 
 16.30  affiliated entity at the time of initial occupancy, the 
 16.31  structure shall receive the reduced class rate until the 
 16.32  structure ceases to be at least 50 percent occupied by the 
 16.33  entity or an affiliated entity, provided, if the portion of the 
 16.34  structure occupied by that entity or an affiliate of the entity 
 16.35  is less than 85 percent, the transit zone class rate reduction 
 16.36  for the portion of structure not so occupied shall terminate 
 17.1   upon the leasing of such space to any nonaffiliated entity; or 
 17.2      (C) if the structure meets the criteria in item (i)(C), the 
 17.3   structure shall receive the reduced class rate until the 
 17.4   expiration of the initial lease term of the applicable tenants. 
 17.5      Percentages occupied or leased shall be determined based 
 17.6   upon net leasable square footage in the structure.  The assessor 
 17.7   shall allocate the value of the structure in the same fashion as 
 17.8   provided in the general law for portions of any structure 
 17.9   receiving and not receiving the transit tax class reduction as a 
 17.10  result of this clause. 
 17.11     (3) For purposes of paragraph (c), "qualifying entity" 
 17.12  means the entity owning the property on September 1, 2000, or an 
 17.13  affiliate of an entity that owned the property on September 1, 
 17.14  2000. 
 17.15     EFFECTIVE DATE:  This section is effective for property 
 17.16  taxes payable in 2001 and thereafter. 
 17.17     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
 17.18  273.13, subdivision 25, is amended to read: 
 17.19     Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
 17.20  estate containing four or more units and used or held for use by 
 17.21  the owner or by the tenants or lessees of the owner as a 
 17.22  residence for rental periods of 30 days or more.  Class 4a also 
 17.23  includes hospitals licensed under sections 144.50 to 144.56, 
 17.24  other than hospitals exempt under section 272.02, and contiguous 
 17.25  property used for hospital purposes, without regard to whether 
 17.26  the property has been platted or subdivided.  Class 4a property 
 17.27  in a city with a population of 5,000 or less, that is (1) 
 17.28  located outside of the metropolitan area, as defined in section 
 17.29  473.121, subdivision 2, or outside any county contiguous to the 
 17.30  metropolitan area, and (2) whose city boundary is at least 15 
 17.31  miles from the boundary of any city with a population greater 
 17.32  than 5,000 has a class rate of 2.15 percent of market value.  
 17.33  All other Class 4a property has a class rate of 2.4 1.95 percent 
 17.34  of market value.  For purposes of this paragraph, population has 
 17.35  the same meaning given in section 477A.011, subdivision 3. 
 17.36     (b) Class 4b includes: 
 18.1      (1) residential real estate containing less than four units 
 18.2   that does not qualify as class 4bb, other than seasonal 
 18.3   residential, and recreational; 
 18.4      (2) manufactured homes not classified under any other 
 18.5   provision; 
 18.6      (3) a dwelling, garage, and surrounding one acre of 
 18.7   property on a nonhomestead farm classified under subdivision 23, 
 18.8   paragraph (b) containing two or three units; 
 18.9      (4) unimproved property that is classified residential as 
 18.10  determined under subdivision 33.  
 18.11     Class 4b property has a class rate of 1.65 percent of 
 18.12  market value.  
 18.13     (c) Class 4bb includes: 
 18.14     (1) nonhomestead residential real estate containing one 
 18.15  unit, other than seasonal residential, and recreational; and 
 18.16     (2) a single family dwelling, garage, and surrounding one 
 18.17  acre of property on a nonhomestead farm classified under 
 18.18  subdivision 23, paragraph (b). 
 18.19     Class 4bb has a class rate of 1.2 percent on the first 
 18.20  $76,000 of market value and a class rate of 1.65 percent of its 
 18.21  market value that exceeds $76,000. 
 18.22     Property that has been classified as seasonal recreational 
 18.23  residential property at any time during which it has been owned 
 18.24  by the current owner or spouse of the current owner does not 
 18.25  qualify for class 4bb. 
 18.26     (d) Class 4c property includes: 
 18.27     (1) except as provided in subdivision 22, paragraph (c), 
 18.28  real property devoted to temporary and seasonal residential 
 18.29  occupancy for recreation purposes, including real property 
 18.30  devoted to temporary and seasonal residential occupancy for 
 18.31  recreation purposes and not devoted to commercial purposes for 
 18.32  more than 250 days in the year preceding the year of 
 18.33  assessment.  For purposes of this clause, property is devoted to 
 18.34  a commercial purpose on a specific day if any portion of the 
 18.35  property is used for residential occupancy, and a fee is charged 
 18.36  for residential occupancy.  In order for a property to be 
 19.1   classified as class 4c, seasonal recreational residential for 
 19.2   commercial purposes, at least 40 percent of the annual gross 
 19.3   lodging receipts related to the property must be from business 
 19.4   conducted during 90 consecutive days and either (i) at least 60 
 19.5   percent of all paid bookings by lodging guests during the year 
 19.6   must be for periods of at least two consecutive nights; or (ii) 
 19.7   at least 20 percent of the annual gross receipts must be from 
 19.8   charges for rental of fish houses, boats and motors, 
 19.9   snowmobiles, downhill or cross-country ski equipment, or charges 
 19.10  for marina services, launch services, and guide services, or the 
 19.11  sale of bait and fishing tackle.  For purposes of this 
 19.12  determination, a paid booking of five or more nights shall be 
 19.13  counted as two bookings.  Class 4c also includes commercial use 
 19.14  real property used exclusively for recreational purposes in 
 19.15  conjunction with class 4c property devoted to temporary and 
 19.16  seasonal residential occupancy for recreational purposes, up to 
 19.17  a total of two acres, provided the property is not devoted to 
 19.18  commercial recreational use for more than 250 days in the year 
 19.19  preceding the year of assessment and is located within two miles 
 19.20  of the class 4c property with which it is used.  Class 4c 
 19.21  property classified in this clause also includes the remainder 
 19.22  of class 1c resorts provided that the entire property including 
 19.23  that portion of the property classified as class 1c also meets 
 19.24  the requirements for class 4c under this clause; otherwise the 
 19.25  entire property is classified as class 3.  Owners of real 
 19.26  property devoted to temporary and seasonal residential occupancy 
 19.27  for recreation purposes and all or a portion of which was 
 19.28  devoted to commercial purposes for not more than 250 days in the 
 19.29  year preceding the year of assessment desiring classification as 
 19.30  class 1c or 4c, must submit a declaration to the assessor 
 19.31  designating the cabins or units occupied for 250 days or less in 
 19.32  the year preceding the year of assessment by January 15 of the 
 19.33  assessment year.  Those cabins or units and a proportionate 
 19.34  share of the land on which they are located will be designated 
 19.35  class 1c or 4c as otherwise provided.  The remainder of the 
 19.36  cabins or units and a proportionate share of the land on which 
 20.1   they are located will be designated as class 3a.  The owner of 
 20.2   property desiring designation as class 1c or 4c property must 
 20.3   provide guest registers or other records demonstrating that the 
 20.4   units for which class 1c or 4c designation is sought were not 
 20.5   occupied for more than 250 days in the year preceding the 
 20.6   assessment if so requested.  The portion of a property operated 
 20.7   as a (1) restaurant, (2) bar, (3) gift shop, and (4) other 
 20.8   nonresidential facility operated on a commercial basis not 
 20.9   directly related to temporary and seasonal residential occupancy 
 20.10  for recreation purposes shall not qualify for class 1c or 4c; 
 20.11     (2) qualified property used as a golf course if: 
 20.12     (i) it is open to the public on a daily fee basis.  It may 
 20.13  charge membership fees or dues, but a membership fee may not be 
 20.14  required in order to use the property for golfing, and its green 
 20.15  fees for golfing must be comparable to green fees typically 
 20.16  charged by municipal courses; and 
 20.17     (ii) it meets the requirements of section 273.112, 
 20.18  subdivision 3, paragraph (d). 
 20.19     A structure used as a clubhouse, restaurant, or place of 
 20.20  refreshment in conjunction with the golf course is classified as 
 20.21  class 3a property; 
 20.22     (3) real property up to a maximum of one acre of land owned 
 20.23  by a nonprofit community service oriented organization; provided 
 20.24  that the property is not used for a revenue-producing activity 
 20.25  for more than six days in the calendar year preceding the year 
 20.26  of assessment and the property is not used for residential 
 20.27  purposes on either a temporary or permanent basis.  For purposes 
 20.28  of this clause, a "nonprofit community service oriented 
 20.29  organization" means any corporation, society, association, 
 20.30  foundation, or institution organized and operated exclusively 
 20.31  for charitable, religious, fraternal, civic, or educational 
 20.32  purposes, and which is exempt from federal income taxation 
 20.33  pursuant to section 501(c)(3), (10), or (19) of the Internal 
 20.34  Revenue Code of 1986, as amended through December 31, 1990.  For 
 20.35  purposes of this clause, "revenue-producing activities" shall 
 20.36  include but not be limited to property or that portion of the 
 21.1   property that is used as an on-sale intoxicating liquor or 3.2 
 21.2   percent malt liquor establishment licensed under chapter 340A, a 
 21.3   restaurant open to the public, bowling alley, a retail store, 
 21.4   gambling conducted by organizations licensed under chapter 349, 
 21.5   an insurance business, or office or other space leased or rented 
 21.6   to a lessee who conducts a for-profit enterprise on the 
 21.7   premises.  Any portion of the property which is used for 
 21.8   revenue-producing activities for more than six days in the 
 21.9   calendar year preceding the year of assessment shall be assessed 
 21.10  as class 3a.  The use of the property for social events open 
 21.11  exclusively to members and their guests for periods of less than 
 21.12  24 hours, when an admission is not charged nor any revenues are 
 21.13  received by the organization shall not be considered a 
 21.14  revenue-producing activity; 
 21.15     (4) post-secondary student housing of not more than one 
 21.16  acre of land that is owned by a nonprofit corporation organized 
 21.17  under chapter 317A and is used exclusively by a student 
 21.18  cooperative, sorority, or fraternity for on-campus housing or 
 21.19  housing located within two miles of the border of a college 
 21.20  campus; 
 21.21     (5) manufactured home parks as defined in section 327.14, 
 21.22  subdivision 3; and 
 21.23     (6) real property that is actively and exclusively devoted 
 21.24  to indoor fitness, health, social, recreational, and related 
 21.25  uses, is owned and operated by a not-for-profit corporation, and 
 21.26  is located within the metropolitan area as defined in section 
 21.27  473.121, subdivision 2. 
 21.28     Class 4c property has a class rate of 1.65 percent of 
 21.29  market value, except that (i) each parcel of seasonal 
 21.30  residential recreational property not used for commercial 
 21.31  purposes has the same class rates as class 4bb property, (ii) 
 21.32  manufactured home parks assessed under clause (5) have the same 
 21.33  a class rate as class 4b property of 1.2 percent, and (iii) 
 21.34  property described in paragraph (d), clause (4), has the same 
 21.35  class rate as the rate applicable to the first tier of class 4bb 
 21.36  nonhomestead residential real estate under paragraph (c).  
 22.1      (e) Class 4d property is qualifying low-income rental 
 22.2   housing certified to the assessor by the housing finance agency 
 22.3   under sections 273.126 and 462A.071.  Class 4d includes land in 
 22.4   proportion to the total market value of the building that is 
 22.5   qualifying low-income rental housing.  For all properties 
 22.6   qualifying as class 4d, the market value determined by the 
 22.7   assessor must be based on the normal approach to value using 
 22.8   normal unrestricted rents. 
 22.9      Class 4d property has a class rate of one percent of market 
 22.10  value.  
 22.11     EFFECTIVE DATE:  This section is effective for taxes levied 
 22.12  in 2000, payable in 2001, and thereafter. 
 22.13     Sec. 10.  Minnesota Statutes 1999 Supplement, section 
 22.14  273.1382, subdivision 1b, is amended to read: 
 22.15     Subd. 1b.  [EDUCATION AGRICULTURAL CREDIT.] Property 
 22.16  classified as class 2a agricultural homestead or class 2b 
 22.17  agricultural nonhomestead or timberland is eligible for 
 22.18  education agricultural credit.  The credit is equal to 54 88.5 
 22.19  percent, in the case of agricultural homestead property, or 50 
 22.20  percent, in the case of agricultural nonhomestead property or 
 22.21  timberland, of the property's net tax capacity times the 
 22.22  education credit tax rate determined in subdivision 1.  The net 
 22.23  tax capacity of class 2a property attributable to the house, 
 22.24  garage, and surrounding one acre of land is not eligible for the 
 22.25  credit under this subdivision. 
 22.26     EFFECTIVE DATE:  This section is effective for taxes 
 22.27  payable in 2001, and thereafter. 
 22.28     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
 22.29  273.1398, subdivision 1a, is amended to read: 
 22.30     Subd. 1a.  [TAX BASE DIFFERENTIAL.] (a) For aids payable in 
 22.31  2000, the tax base differential is: 
 22.32     (1) 0.45 percent of the assessment year 1998 taxable market 
 22.33  value of class 2a agricultural homestead property, excluding the 
 22.34  house, garage, and surrounding one acre of land, between 
 22.35  $115,000 and $600,000 and over 320 acres, minus the value over 
 22.36  $600,000 that is less than 320 acres; plus 
 23.1      (2) 0.5 percent of the assessment year 1998 taxable market 
 23.2   value of noncommercial seasonal recreational residential 
 23.3   property over $75,000 in value; plus 
 23.4      (3) for purposes of computing the fiscal disparity 
 23.5   adjustment only, 0.2 percent of the assessment year 1998 taxable 
 23.6   market value of class 3 commercial-industrial property over 
 23.7   $150,000. 
 23.8      (b) For the purposes of the distribution of homestead and 
 23.9   agricultural credit aid for aids payable in 2000, the 
 23.10  commissioner of revenue shall use the best information available 
 23.11  as of June 30, 1999, to make an estimate of the value described 
 23.12  in paragraph (a), clause (1).  The commissioner shall adjust the 
 23.13  distribution of homestead and agricultural credit aid for aids 
 23.14  payable in 2001 and subsequent years if new information 
 23.15  regarding the value described in paragraph (a), clause (1), 
 23.16  becomes available after June 30, 1999. 
 23.17     (c) For aids payable in 2001, the tax base differential is: 
 23.18     (1) 0.45 percent of the assessment year 1999 taxable market 
 23.19  value of class 4a property that had a class rate of 2.4 percent 
 23.20  for taxes payable in 2000, plus 0.2 percent of the assessment 
 23.21  year 1999 taxable market value of class 4a property that had a 
 23.22  class rate of 2.15 percent of taxes payable in 2000; plus 
 23.23     (2) 0.45 percent of the assessment year 1999 taxable market 
 23.24  value of manufactured home parks classified under section 
 23.25  273.13, subdivision 25, paragraph (d), clause (5). 
 23.26     EFFECTIVE DATE:  This section is effective for aids payable 
 23.27  in 2001, and thereafter. 
 23.28     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
 23.29  273.1398, subdivision 4a, is amended to read: 
 23.30     Subd. 4a.  [AID OFFSET FOR COURT COSTS.] (a) By July 15, 
 23.31  1999, the supreme court shall determine and certify to the 
 23.32  commissioner of revenue for each county, other than counties 
 23.33  located in the eighth judicial district, the county's share of 
 23.34  the costs assumed under Laws 1999, chapter 216, article 7, 
 23.35  during the fiscal year beginning July 1, 2000, less an amount 
 23.36  equal to the county's share of transferred fines collected by 
 24.1   the district courts in the county during calendar year 1998.  
 24.2      (b) Payments to a county under subdivision 2 or section 
 24.3   273.166 for calendar year 2000 must be permanently reduced by an 
 24.4   amount equal to 75 percent of the net cost to the state for 
 24.5   assumption of district court costs as certified in paragraph (a).
 24.6      (c) Payments to a county under subdivision 2 or section 
 24.7   273.166 for calendar year 2001 must be permanently reduced by an 
 24.8   amount equal to 25 percent of the net cost to the state for 
 24.9   assumption of district court costs as certified in paragraph (a).
 24.10     (d) Payments to a county under subdivision 2 for calendar 
 24.11  year 2001 are permanently increased by an amount equal to 7.5 
 24.12  percent of the county's share of transferred fines collected by 
 24.13  the district courts in the county during calendar year 1998, as 
 24.14  determined under paragraph (a). 
 24.15     EFFECTIVE DATE:  This section is effective for aids payable 
 24.16  in 2001. 
 24.17     Sec. 13.  Minnesota Statutes 1998, section 273.37, 
 24.18  subdivision 3, is amended to read: 
 24.19     Subd. 3.  Taxable wind energy conversion systems, as 
 24.20  defined in section 216C.06, subdivision 12, which are not owned, 
 24.21  operated, and exclusively controlled by the owner of the land 
 24.22  upon which the system is situated, must be listed and assessed 
 24.23  by the commissioner of revenue as personal property in the name 
 24.24  of the owner of the system in the taxing district where it is 
 24.25  situated. 
 24.26     EFFECTIVE DATE:  This section is effective for the 2000 
 24.27  assessment and thereafter. 
 24.28     Sec. 14.  [273.372] [PROCEEDINGS AND APPEALS; UTILITY 
 24.29  VALUATIONS.] 
 24.30     An appeal by a utility company concerning the exemption, 
 24.31  valuation, or classification on property for which the 
 24.32  commissioner of revenue has provided the county with 
 24.33  commissioner's orders or recommended values must be brought 
 24.34  against the commissioner in tax court or in district court of 
 24.35  the county where the property is located, and not against the 
 24.36  county or taxing district where the property is located.  If the 
 25.1   appeal to a court is of an order of the commissioner, it must be 
 25.2   brought under chapter 271.  If the appeal is brought under 
 25.3   chapter 278, the procedures in that chapter apply.  This 
 25.4   provision applies to the property contained under sections 
 25.5   273.33, 273.35, 273.36, and 273.37, but only if the appealed 
 25.6   values have remained unchanged from those provided to the county 
 25.7   by the commissioner.  If the exemption, valuation, or 
 25.8   classification being appealed has been changed by the county, 
 25.9   then the action must be brought under chapter 278 in the county 
 25.10  where the property is located. 
 25.11     Upon filing of any appeal by a utility company against the 
 25.12  commissioner, the commissioner shall give notice by first class 
 25.13  mail to each county which would be affected by the appeal. 
 25.14     Companies that submit the reports under section 273.371 by 
 25.15  the date specified in that section, or by the date specified by 
 25.16  the commissioner in an extension, may appeal administratively to 
 25.17  the commissioner under the procedures in section 270.11, 
 25.18  subdivision 6, prior to bringing an action in tax court or in 
 25.19  district court, however, instituting an administrative appeal 
 25.20  with the commissioner does not change or modify the deadline in 
 25.21  section 278.01 for bringing an action in tax court or district 
 25.22  court. 
 25.23     EFFECTIVE DATE:  This section is effective for appeals made 
 25.24  on property for assessment year 1999 and thereafter. 
 25.25     Sec. 15.  Minnesota Statutes 1998, section 275.065, 
 25.26  subdivision 3, is amended to read: 
 25.27     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
 25.28  county auditor shall prepare and the county treasurer shall 
 25.29  deliver after November 10 and on or before November 24 each 
 25.30  year, by first class mail to each taxpayer at the address listed 
 25.31  on the county's current year's assessment roll, a notice of 
 25.32  proposed property taxes.  
 25.33     (b) The commissioner of revenue shall prescribe the form of 
 25.34  the notice. 
 25.35     (c) The notice must inform taxpayers that it contains the 
 25.36  amount of property taxes each taxing authority proposes to 
 26.1   collect for taxes payable the following year.  In the case of a 
 26.2   town, or in the case of the state determined portion of the 
 26.3   school district levy, the final tax amount will be its proposed 
 26.4   tax.  The notice must clearly state that each taxing authority, 
 26.5   including regional library districts established under section 
 26.6   134.201, and including the metropolitan taxing districts as 
 26.7   defined in paragraph (i), but excluding all other special taxing 
 26.8   districts and towns, will hold a public meeting to receive 
 26.9   public testimony on the proposed budget and proposed or final 
 26.10  property tax levy, or, in case of a school district, on the 
 26.11  current budget and proposed property tax levy unless the taxing 
 26.12  authority either:  (1) elects to provide information under 
 26.13  subdivision 9; or (2) is exempt under subdivision 6c.  It must 
 26.14  clearly state the time and place of each taxing authority's 
 26.15  meeting and an address where comments will be received by mail.  
 26.16     (d) The notice must state for each parcel: 
 26.17     (1) the market value of the property as determined under 
 26.18  section 273.11, and used for computing property taxes payable in 
 26.19  the following year and for taxes payable in the current year as 
 26.20  each appears in the records of the county assessor on November 1 
 26.21  of the current year; and, in the case of residential property, 
 26.22  whether the property is classified as homestead or 
 26.23  nonhomestead.  The notice must clearly inform taxpayers of the 
 26.24  years to which the market values apply and that the values are 
 26.25  final values; 
 26.26     (2) the items listed below, shown separately by county, 
 26.27  city or town, state determined school tax net of the education 
 26.28  homestead credit under section 273.1382, voter approved school 
 26.29  levy, other local school levy, and the sum of the special taxing 
 26.30  districts, and as a total of all taxing authorities:  
 26.31     (i) the actual tax for taxes payable in the current year; 
 26.32     (ii) the tax change due to spending factors, defined as the 
 26.33  proposed tax minus the constant spending tax amount; 
 26.34     (iii) the tax change due to other factors, defined as the 
 26.35  constant spending tax amount minus the actual current year tax; 
 26.36  and 
 27.1      (iv) the proposed tax amount. 
 27.2      In the case of a town or the state determined school tax, 
 27.3   the final tax shall also be its proposed tax unless the town 
 27.4   changes its levy at a special town meeting under section 
 27.5   365.52.  If a school district has certified under section 
 27.6   126C.17, subdivision 9, that a referendum will be held in the 
 27.7   school district at the November general election, the county 
 27.8   auditor must note next to the school district's proposed amount 
 27.9   that a referendum is pending and that, if approved by the 
 27.10  voters, the tax amount may be higher than shown on the notice.  
 27.11  In the case of the city of Minneapolis, the levy for the 
 27.12  Minneapolis library board and the levy for Minneapolis park and 
 27.13  recreation shall be listed separately from the remaining amount 
 27.14  of the city's levy.  In the case of a parcel where tax increment 
 27.15  or the fiscal disparities areawide tax under chapter 276A or 
 27.16  473F applies, the proposed tax levy on the captured value or the 
 27.17  proposed tax levy on the tax capacity subject to the areawide 
 27.18  tax must each be stated separately and not included in the sum 
 27.19  of the special taxing districts; and 
 27.20     (3) the increase or decrease between the total taxes 
 27.21  payable in the current year and the total proposed taxes, 
 27.22  expressed as a percentage. 
 27.23     For purposes of this section, the amount of the tax on 
 27.24  homesteads qualifying under the senior citizens' property tax 
 27.25  deferral program under chapter 290B is the total amount of 
 27.26  property tax before subtraction of the deferred property tax 
 27.27  amount. 
 27.28     (e) The notice must clearly state that the proposed or 
 27.29  final taxes do not include the following: 
 27.30     (1) special assessments; 
 27.31     (2) levies approved by the voters after the date the 
 27.32  proposed taxes are certified, including bond referenda, school 
 27.33  district levy referenda, and levy limit increase referenda; 
 27.34     (3) amounts necessary to pay cleanup or other costs due to 
 27.35  a natural disaster occurring after the date the proposed taxes 
 27.36  are certified; 
 28.1      (4) amounts necessary to pay tort judgments against the 
 28.2   taxing authority that become final after the date the proposed 
 28.3   taxes are certified; and 
 28.4      (5) the contamination tax imposed on properties which 
 28.5   received market value reductions for contamination. 
 28.6      (f) Except as provided in subdivision 7, failure of the 
 28.7   county auditor to prepare or the county treasurer to deliver the 
 28.8   notice as required in this section does not invalidate the 
 28.9   proposed or final tax levy or the taxes payable pursuant to the 
 28.10  tax levy. 
 28.11     (g) If the notice the taxpayer receives under this section 
 28.12  lists the property as nonhomestead, and satisfactory 
 28.13  documentation is provided to the county assessor by the 
 28.14  applicable deadline, and the property qualifies for the 
 28.15  homestead classification in that assessment year, the assessor 
 28.16  shall reclassify the property to homestead for taxes payable in 
 28.17  the following year. 
 28.18     (h) In the case of class 4 residential property used as a 
 28.19  residence for lease or rental periods of 30 days or more, the 
 28.20  taxpayer must either: 
 28.21     (1) mail or deliver a copy of the notice of proposed 
 28.22  property taxes to each tenant, renter, or lessee; or 
 28.23     (2) post a copy of the notice in a conspicuous place on the 
 28.24  premises of the property.  
 28.25     The notice must be mailed or posted by the taxpayer by 
 28.26  November 27 or within three days of receipt of the notice, 
 28.27  whichever is later.  A taxpayer may notify the county treasurer 
 28.28  of the address of the taxpayer, agent, caretaker, or manager of 
 28.29  the premises to which the notice must be mailed in order to 
 28.30  fulfill the requirements of this paragraph. 
 28.31     (i) For purposes of this subdivision, subdivisions 5a and 
 28.32  6, "metropolitan special taxing districts" means the following 
 28.33  taxing districts in the seven-county metropolitan area that levy 
 28.34  a property tax for any of the specified purposes listed below: 
 28.35     (1) metropolitan council under section 473.132, 473.167, 
 28.36  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
 29.1      (2) metropolitan airports commission under section 473.667, 
 29.2   473.671, or 473.672; and 
 29.3      (3) metropolitan mosquito control commission under section 
 29.4   473.711. 
 29.5      For purposes of this section, any levies made by the 
 29.6   regional rail authorities in the county of Anoka, Carver, 
 29.7   Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
 29.8   398A shall be included with the appropriate county's levy and 
 29.9   shall be discussed at that county's public hearing or stated in 
 29.10  the county's Internet posting as provided in subdivision 9. 
 29.11     (j) If a statutory or home rule charter city or a town has 
 29.12  exercised the local levy option provided by section 473.388, 
 29.13  subdivision 7, it may include in the notice of its proposed 
 29.14  taxes the amount of its proposed taxes attributable to its 
 29.15  exercise of the option.  In the first year of the city or town's 
 29.16  exercise of this option, the statement shall include an estimate 
 29.17  of the reduction of the metropolitan council's tax on the parcel 
 29.18  due to exercise of that option.  The metropolitan council's levy 
 29.19  shall be adjusted accordingly. 
 29.20     Sec. 16.  Minnesota Statutes 1999 Supplement, section 
 29.21  275.065, subdivision 5a, is amended to read: 
 29.22     Subd. 5a.  [PUBLIC ADVERTISEMENT.] (a) Unless exempt under 
 29.23  subdivision 6c, a city that has a population of more than 2,500, 
 29.24  county, a metropolitan special taxing district as defined in 
 29.25  subdivision 3, paragraph (i), a regional library district 
 29.26  established under section 134.201, or school district shall 
 29.27  advertise in a newspaper a notice of its intent to: 
 29.28     (1) adopt a budget and property tax levy or, in the case of 
 29.29  a school district, to review its current budget and proposed 
 29.30  property taxes payable in the following year, at a public 
 29.31  hearing; or 
 29.32     (2) post information as provided in subdivision 9.  
 29.33  The notice must be published not less than two business days nor 
 29.34  more than six business days before the hearing or the posting of 
 29.35  information. 
 29.36     The advertisement must be at least one-eighth page in size 
 30.1   of a standard-size or a tabloid-size newspaper.  The 
 30.2   advertisement must not be placed in the part of the newspaper 
 30.3   where legal notices and classified advertisements appear.  The 
 30.4   advertisement must be published in an official newspaper of 
 30.5   general circulation in the taxing authority.  The newspaper 
 30.6   selected must be one of general interest and readership in the 
 30.7   community, and not one of limited subject matter.  The 
 30.8   advertisement must appear in a newspaper that is published at 
 30.9   least once per week.  
 30.10     For purposes of this section, the metropolitan special 
 30.11  taxing district's advertisement must only be published in the 
 30.12  Minneapolis Star and Tribune and the Saint Paul Pioneer Press. 
 30.13     (b) The advertisement for school districts, metropolitan 
 30.14  special taxing districts, and regional library districts that 
 30.15  are not exempt under subdivision 6c and do not elect to post 
 30.16  information as provided in subdivision 9 must be in the 
 30.17  following form, except that the notice for a school district may 
 30.18  include references to the current budget in regard to proposed 
 30.19  property taxes. 
 30.20                             "NOTICE OF
 30.21                      PROPOSED PROPERTY TAXES
 30.22                   (School District/Metropolitan
 30.23                  Special Taxing District/Regional
 30.24                   Library District) of .........
 30.25  The governing body of ........ will soon hold budget hearings 
 30.26  and vote on the property taxes for (metropolitan special taxing 
 30.27  district/regional library district services that will be 
 30.28  provided in (year)/school district services that will be 
 30.29  provided in (year) and (year)). 
 30.30                     NOTICE OF PUBLIC HEARING:
 30.31  All concerned citizens are invited to attend a public hearing 
 30.32  and express their opinions on the proposed (school 
 30.33  district/metropolitan special taxing district/regional library 
 30.34  district) budget and property taxes, or in the case of a school 
 30.35  district, its current budget and proposed property taxes, 
 30.36  payable in the following year.  The hearing will be held on 
 31.1   (Month/Day/Year) at (Time) at (Location, Address)." 
 31.2      (c) The advertisement for cities and counties that are not 
 31.3   exempt under subdivision 6c and do not elect to post information 
 31.4   as provided in subdivision 9 must be in the following form. 
 31.5                         "NOTICE OF PROPOSED
 31.6                   TOTAL BUDGET AND PROPERTY TAXES
 31.7   The (city/county) governing body or board of commissioners will 
 31.8   hold a public hearing to discuss the budget and to vote on the 
 31.9   amount of property taxes to collect for services the 
 31.10  (city/county) will provide in (year). 
 31.11     
 31.12  SPENDING:  The total budget amounts below compare 
 31.13  (city's/county's) (year) total actual budget with the amount the 
 31.14  (city/county) proposes to spend in (year). 
 31.15     
 31.16  (Year) Total          Proposed (Year)          Change from
 31.17  Actual Budget             Budget               (Year)-(Year)
 31.18     
 31.19    $.......              $.......                ...%
 31.20     
 31.21  TAXES:  The property tax amounts below compare that portion of 
 31.22  the current budget levied in property taxes in (city/county) for 
 31.23  (year) with the property taxes the (city/county) proposes to 
 31.24  collect in (year). 
 31.25     
 31.26  (Year) Property       Proposed (Year)          Change from
 31.27      Taxes              Property Taxes         (Year)-(Year)
 31.28     
 31.29    $.......              $.......                ...% 
 31.30     
 31.31                     ATTEND THE PUBLIC HEARING
 31.32  All (city/county) residents are invited to attend the public 
 31.33  hearing of the (city/county) to express your opinions on the 
 31.34  budget and the proposed amount of (year) property taxes.  The 
 31.35  hearing will be held on: 
 31.36                       (Month/Day/Year/Time)
 32.1                          (Location/Address)
 32.2   If the discussion of the budget cannot be completed, a time and 
 32.3   place for continuing the discussion will be announced at the 
 32.4   hearing.  You are also invited to send your written comments to: 
 32.5                            (City/County)
 32.6                         (Location/Address)"
 32.7      (d) The advertisement for taxing authorities that elect to 
 32.8   post information under subdivision 9 must be in the following 
 32.9   form.  
 32.10                            "NOTICE OF
 32.11                PROPOSED PROPERTY TAX INFORMATION
 32.12  The governing body of ........ will provide detailed information 
 32.13  on its proposed budget and property taxes for the upcoming 
 32.14  calendar year on an Internet Web site.  The address of that Web 
 32.15  site is .........  This information is provided in lieu of 
 32.16  conducting a public meeting on the budget and proposed property 
 32.17  taxes.  A resident of ........ or an owner of property located 
 32.18  in ........ may request that a copy of the information provided 
 32.19  at the Web site be mailed to the resident or property owner.  
 32.20  This information may be requested by contacting: 
 32.21                      name (name)
 32.22                      at (mailing address)
 32.23                      or (telephone number)
 32.24                      or (e-mail address)"
 32.25     (e) For purposes of this subdivision, the budget amounts 
 32.26  listed on the advertisement mean: 
 32.27     (1) for cities, the total government fund expenditures, as 
 32.28  defined by the state auditor under section 471.6965, less any 
 32.29  expenditures for improvements or services that are specially 
 32.30  assessed or charged under chapter 429, 430, 435, or the 
 32.31  provisions of any other law or charter; and 
 32.32     (2) for counties, the total government fund expenditures, 
 32.33  as defined by the state auditor under section 375.169, less any 
 32.34  expenditures for direct payments to recipients or providers for 
 32.35  the human service aids listed below: 
 32.36     (i) Minnesota family investment program under chapters 256J 
 33.1   and 256K; 
 33.2      (ii) medical assistance under sections 256B.041, 
 33.3   subdivision 5, and 256B.19, subdivision 1; 
 33.4      (iii) general assistance medical care under section 
 33.5   256D.03, subdivision 6; 
 33.6      (iv) general assistance under section 256D.03, subdivision 
 33.7   2; 
 33.8      (v) emergency assistance under section 256J.48; 
 33.9      (vi) Minnesota supplemental aid under section 256D.36, 
 33.10  subdivision 1; 
 33.11     (vii) preadmission screening under section 256B.0911, and 
 33.12  alternative care grants under section 256B.0913; 
 33.13     (viii) general assistance medical care claims processing, 
 33.14  medical transportation and related costs under section 256D.03, 
 33.15  subdivision 4; 
 33.16     (ix) medical transportation and related costs under section 
 33.17  256B.0625, subdivisions 17 to 18a; 
 33.18     (x) group residential housing under section 256I.05, 
 33.19  subdivision 8, transferred from programs in clauses (iv) and 
 33.20  (vi); or 
 33.21     (xi) any successor programs to those listed in clauses (i) 
 33.22  to (x). 
 33.23     (e) (f) A city with a population of over 500 but not more 
 33.24  than 2,500 must advertise by posted notice as defined in section 
 33.25  645.12, subdivision 1.  The advertisement must be posted at the 
 33.26  time provided in paragraph (a).  It must be in the form required 
 33.27  in paragraph (b). 
 33.28     (f) (g) For purposes of this subdivision, the population of 
 33.29  a city is the most recent population as determined by the state 
 33.30  demographer under section 4A.02. 
 33.31     (g) (h) The commissioner of revenue, subject to the 
 33.32  approval of the chairs of the house and senate tax committees, 
 33.33  shall prescribe the form and format of the advertisement. 
 33.34     Sec. 17.  Minnesota Statutes 1998, section 275.065, is 
 33.35  amended by adding a subdivision to read: 
 33.36     Subd. 6c.  [EXEMPTION FROM PUBLIC HEARING REQUIREMENT.] A 
 34.1   taxing authority is exempt from the requirement to hold a public 
 34.2   hearing under this section if its total proposed tax does not 
 34.3   exceed its total tax payable in the current year by more than 
 34.4   one percent. 
 34.5      Sec. 18.  Minnesota Statutes 1998, section 275.065, is 
 34.6   amended by adding a subdivision to read: 
 34.7      Subd. 9.  [ALTERNATIVE TO HEARING; INFORMATION POSTED ON 
 34.8   INTERNET.] A taxing authority that proposes to increase its levy 
 34.9   over the tax payable in the current year by no more than the 
 34.10  percentage increase in the implicit price deflator may elect to 
 34.11  provide information on an Internet Web site as required under 
 34.12  this subdivision in lieu of conducting a hearing under 
 34.13  subdivision 6 or 6b.  The posted information must include the 
 34.14  following information: 
 34.15  SPENDING:  The total budget amounts below compare (the taxing 
 34.16  authority's) (year) total actual budget with the amount the 
 34.17  (taxing authority) proposes to spend in (year). 
 34.18     
 34.19  (Year) Total          Proposed (Year)          Change from
 34.20  Actual Budget             Budget               (Year)-(Year)
 34.21    
 34.22    $.......              $.......                ...%
 34.23     
 34.24  TAXES:  The property tax amounts below compare that portion of 
 34.25  the current budget levied in property taxes in (the taxing 
 34.26  authority) for (year) with the property taxes the (taxing 
 34.27  authority) proposes to collect in (year). 
 34.28     
 34.29  (Year) Property       Proposed (Year)          Change from
 34.30      Taxes              Property Taxes         (Year)-(Year)
 34.31    
 34.32    $.......              $.......                ...% 
 34.33     The budget amounts have the meaning provided in subdivision 
 34.34  5a, paragraph (e).  The specific purposes for which property tax 
 34.35  revenues are being increased must be set forth.  
 34.36     The posting must also provide the name, mailing address, 
 35.1   telephone number, and e-mail address of an individual who will 
 35.2   respond to inquiries about the budget and tax information posted 
 35.3   on the Web site.  This information is required to be posted by 
 35.4   the first business day after November 28. 
 35.5      Sec. 19.  Minnesota Statutes 1998, section 275.066, is 
 35.6   amended to read: 
 35.7      275.066 [SPECIAL TAXING DISTRICTS; DEFINITION.] 
 35.8      For the purposes of property taxation and property tax 
 35.9   state aids, the term "special taxing districts" includes the 
 35.10  following entities: 
 35.11     (1) watershed districts under chapter 103D; 
 35.12     (2) sanitary districts under sections 115.18 to 115.37; 
 35.13     (3) regional sanitary sewer districts under sections 115.61 
 35.14  to 115.67; 
 35.15     (4) regional public library districts under section 
 35.16  134.201; 
 35.17     (5) park districts under chapter 398; 
 35.18     (6) regional railroad authorities under chapter 398A; 
 35.19     (7) hospital districts under sections 447.31 to 447.38; 
 35.20     (8) St. Cloud metropolitan transit commission under 
 35.21  sections 458A.01 to 458A.15; 
 35.22     (9) Duluth transit authority under sections 458A.21 to 
 35.23  458A.37; 
 35.24     (10) regional development commissions under sections 
 35.25  462.381 to 462.398; 
 35.26     (11) housing and redevelopment authorities under sections 
 35.27  469.001 to 469.047; 
 35.28     (12) port authorities under sections 469.048 to 469.068; 
 35.29     (13) economic development authorities under sections 
 35.30  469.090 to 469.1081; 
 35.31     (14) metropolitan council under sections 473.123 to 
 35.32  473.549; 
 35.33     (15) metropolitan airports commission under sections 
 35.34  473.601 to 473.680; 
 35.35     (16) metropolitan mosquito control commission under 
 35.36  sections 473.701 to 473.716; 
 36.1      (17) Morrison county rural development financing authority 
 36.2   under Laws 1982, chapter 437, section 1; 
 36.3      (18) Croft Historical Park District under Laws 1984, 
 36.4   chapter 502, article 13, section 6; 
 36.5      (19) East Lake county medical clinic district under Laws 
 36.6   1989, chapter 211, sections 1 to 6; 
 36.7      (20) Floodwood area ambulance district under Laws 1993, 
 36.8   chapter 375, article 5, section 39; and 
 36.9      (21) Middle Mississippi River Watershed Management 
 36.10  Organization under sections 103B.211 and 103B.241; and 
 36.11     (22) any other political subdivision of the state of 
 36.12  Minnesota, excluding counties, school districts, cities, and 
 36.13  towns, that has the power to adopt and certify a property tax 
 36.14  levy to the county auditor, as determined by the commissioner of 
 36.15  revenue. 
 36.16     EFFECTIVE DATE:  This section is effective for taxes levied 
 36.17  in 2000, payable in 2001, and thereafter. 
 36.18     Sec. 20.  Minnesota Statutes 1999 Supplement, section 
 36.19  275.71, subdivision 4, is amended to read: 
 36.20     Subd. 4.  [PROPERTY TAX LEVY LIMIT.] For taxes levied in 
 36.21  1998 and 1999, the property tax levy limit for a local 
 36.22  governmental unit is equal to its adjusted levy limit base 
 36.23  determined under subdivision 3 plus any additional levy 
 36.24  authorized under section 275.73, which is levied against net tax 
 36.25  capacity, reduced by the sum of (1) the total amount of aids 
 36.26  that the local governmental unit is certified to receive under 
 36.27  sections 477A.011 to 477A.014, (2) homestead and agricultural 
 36.28  aids it is certified to receive under section 273.1398, (3) 
 36.29  local performance aid it is certified to receive under section 
 36.30  477A.05, (4) taconite aids under sections 298.28 and 298.282 
 36.31  including any aid which was required to be placed in a special 
 36.32  fund for expenditure in the next succeeding year but excluding 
 36.33  amounts allocated under section 298.28, subdivision 2, paragraph 
 36.34  (b), (5) flood loss aid under section 273.1383, and (6) 
 36.35  low-income housing aid under sections 477A.06 and 477A.065. 
 36.36     EFFECTIVE DATE:  This section is effective for taxes levied 
 37.1   in 1999, payable in 2000. 
 37.2      Sec. 21.  Minnesota Statutes 1998, section 276.19, 
 37.3   subdivision 1, is amended to read: 
 37.4      Subdivision 1.  [NOTICE OF OVERPAYMENT.] If an overpayment 
 37.5   of property tax arises on a parcel for any reason due to receipt 
 37.6   of a payment that exceeds the total amount of the tax required 
 37.7   to be paid on the property tax statement, the responsible county 
 37.8   official shall promptly notify the payer by regular mail that 
 37.9   the overpayment has occurred.  The notice must state the amount 
 37.10  of overpayment and identify the parcel on which the overpayment 
 37.11  occurred.  The notice must also instruct the payer how to claim 
 37.12  the overpayment and advise that the overpayment is subject to 
 37.13  forfeiture under this section.  If the name or address of the 
 37.14  payer is not known, the notice of unclaimed overpayment must be 
 37.15  mailed to the taxpayer of record in the office of the county 
 37.16  auditor.  
 37.17     EFFECTIVE DATE:  This section is effective for overpayment 
 37.18  of taxes made the day following final enactment and thereafter 
 37.19  and applies only to taxes levied in 1999, payable in 2000, and 
 37.20  thereafter. 
 37.21     Sec. 22.  [278.14] [REFUNDS OF MISTAKENLY BILLED TAXES.] 
 37.22     Subdivision 1.  [APPLICABILITY.] A county must pay a refund 
 37.23  of a mistakenly billed tax as provided in this section.  As used 
 37.24  in this section, "mistakenly billed tax" means an amount of 
 37.25  property tax that was billed, to the extent the amount billed 
 37.26  exceeds the accurate tax amount due to a misclassification of 
 37.27  property or a mathematical error in the calculation of the tax, 
 37.28  together with any penalty or interest paid on that amount.  This 
 37.29  section applies only to taxes payable in the current year and 
 37.30  the two prior years.  As used in this section, "mathematical 
 37.31  error" is limited to an error in: 
 37.32     (1) converting the market value of a property to tax 
 37.33  capacity; 
 37.34     (2) application of the tax rate to the property's tax 
 37.35  capacity; or 
 37.36     (3) calculation of or eligibility for a credit. 
 38.1      Subd. 2.  [PROCEDURE.] A refund of mistakenly billed tax 
 38.2   must be paid upon verification of a claim made in a written 
 38.3   application by the owner of the property or upon discovery of 
 38.4   the mistakenly billed tax by the county.  Refunds of 
 38.5   overpayments will be made as provided in section 278.12. 
 38.6      Subd. 3.  [APPEALS.] If the county rejects a claim by a 
 38.7   property owner under subdivision 2, it must notify the property 
 38.8   owner of that decision within 90 days of receipt of the claim.  
 38.9   The property owner may appeal that decision to the tax court 
 38.10  within 60 days after receipt of a notice from the county of the 
 38.11  decision.  Relief granted by the tax court is limited to current 
 38.12  year taxes, and taxes in the two prior years. 
 38.13     EFFECTIVE DATE:  This section is effective for overpayment 
 38.14  of taxes made the day following final enactment and thereafter 
 38.15  and applies only to taxes levied in 1999, payable in 2000, and 
 38.16  thereafter. 
 38.17     Sec. 23.  Minnesota Statutes 1999 Supplement, section 
 38.18  290B.03, subdivision 1, is amended to read: 
 38.19     Subdivision 1.  [PROGRAM QUALIFICATIONS.] The 
 38.20  qualifications for the senior citizens' property tax deferral 
 38.21  program are as follows: 
 38.22     (1) the property must be owned and occupied as a homestead 
 38.23  by a person 65 years of age or older.  In the case of a married 
 38.24  couple, both of the spouses must be at least 65 years old at the 
 38.25  time the first property tax deferral is granted, regardless of 
 38.26  whether the property is titled in the name of one spouse or both 
 38.27  spouses, or titled in another way that permits the property to 
 38.28  have homestead status; 
 38.29     (2) the total household income of the qualifying 
 38.30  homeowners, as defined in section 290A.03, subdivision 5, for 
 38.31  the calendar year preceding the year of the initial application 
 38.32  may not exceed $60,000; 
 38.33     (3) the homestead must have been owned and occupied as the 
 38.34  homestead of at least one of the qualifying homeowners for at 
 38.35  least 15 years prior to the year the initial application is 
 38.36  filed; 
 39.1      (4) there are no delinquent property taxes, penalties, or 
 39.2   interest on the homesteaded property; 
 39.3      (5) there are no delinquent special assessments on the 
 39.4   homesteaded property; 
 39.5      (6) there are no state or federal tax liens or judgment 
 39.6   liens on the homesteaded property; 
 39.7      (7) (5) there are no mortgages or other liens on the 
 39.8   property that secure future advances, except for those subject 
 39.9   to credit limits that result in compliance with clause (8) (6); 
 39.10  and 
 39.11     (8) (6) the total unpaid balances of debts secured by 
 39.12  mortgages and other liens on the property, including unpaid 
 39.13  special assessments and delinquent property taxes, penalties, 
 39.14  and interest, but not including property taxes payable during 
 39.15  the year, does not exceed 30 75 percent of the assessor's 
 39.16  estimated market value for the year. 
 39.17     Sec. 24.  Minnesota Statutes 1998, section 290B.04, is 
 39.18  amended by adding a subdivision to read: 
 39.19     Subd. 7.  [PAYMENT OF DELINQUENT TAXES AND 
 39.20  ASSESSMENTS.] Upon approval of a senior citizen's initial 
 39.21  application, the commissioner of revenue shall pay to the 
 39.22  treasurer of the county where the property is located the amount 
 39.23  of any delinquent property taxes, penalties, interest, and 
 39.24  delinquent special assessments on the property which is the 
 39.25  subject of the application. 
 39.26     Sec. 25.  Minnesota Statutes 1999 Supplement, section 
 39.27  290B.05, subdivision 1, is amended to read: 
 39.28     Subdivision 1.  [DETERMINATION BY COMMISSIONER.] The 
 39.29  commissioner shall determine each qualifying homeowner's "annual 
 39.30  maximum property tax amount" following approval of the 
 39.31  homeowner's initial application and following the receipt of a 
 39.32  resumption of eligibility certification.  The "annual maximum 
 39.33  property tax amount" equals three percent of the homeowner's 
 39.34  total household income for the year preceding either the initial 
 39.35  application or the resumption of eligibility certification, 
 39.36  whichever is applicable.  Following approval of the initial 
 40.1   application, the commissioner shall determine the qualifying 
 40.2   homeowner's "maximum allowable deferral."  No tax may be 
 40.3   deferred relative to the appropriate assessment year for any 
 40.4   homeowner whose total household income for the previous year 
 40.5   exceeds $60,000.  No tax shall be deferred in any year in which 
 40.6   the homeowner does not meet the program qualifications in 
 40.7   section 290B.03.  The maximum allowable total deferral is equal 
 40.8   to 75 percent of the assessor's estimated market value for the 
 40.9   year, less the balance of any mortgage loans and other amounts 
 40.10  secured by liens against the property at the time of 
 40.11  application, including any unpaid special assessments and any 
 40.12  delinquent property taxes, penalties, and interest, but not 
 40.13  including property taxes payable during the year. 
 40.14     Sec. 26.  Minnesota Statutes 1998, section 290B.05, 
 40.15  subdivision 3, is amended to read: 
 40.16     Subd. 3.  [CALCULATION OF DEFERRED PROPERTY TAX AMOUNT.] 
 40.17  When final property tax amounts for the following year have been 
 40.18  determined, the county auditor shall calculate the "deferred 
 40.19  property tax amount."  The deferred property tax amount is equal 
 40.20  to the lesser of (1) the maximum allowable deferral for the 
 40.21  year; or (2) the difference between the total amount of property 
 40.22  taxes levied upon the qualifying homestead by all taxing 
 40.23  jurisdictions and the maximum property tax amount.  Any special 
 40.24  assessments levied by any local unit of government must not be 
 40.25  included in the total tax used to calculate the deferred tax 
 40.26  amount.  No deferral of the current year's property taxes is 
 40.27  allowed if there are any delinquent property taxes or delinquent 
 40.28  special assessments for any previous year.  Any tax attributable 
 40.29  to new improvements made to the property after the initial 
 40.30  application has been approved under section 290B.04, subdivision 
 40.31  2, must be excluded when determining any subsequent deferred 
 40.32  property tax amount.  The county auditor shall annually, on or 
 40.33  before April 15, certify to the commissioner of revenue the 
 40.34  property tax deferral amounts determined under this subdivision 
 40.35  by property and by owner.  
 40.36     Sec. 27.  Minnesota Statutes 1998, section 290B.07, is 
 41.1   amended to read: 
 41.2      290B.07 [LIEN; DEFERRED PORTION.] 
 41.3      (a) Payment by the state to the county treasurer 
 41.4   of property taxes, penalties, interest, or special assessments 
 41.5   deferred under this section chapter is deemed a loan from the 
 41.6   state to the program participant.  The commissioner must compute 
 41.7   the interest as provided in section 270.75, subdivision 5, but 
 41.8   not to exceed five percent, and maintain records of the total 
 41.9   deferred amount and interest for each participant.  Interest 
 41.10  shall accrue beginning September 1 of the payable year for which 
 41.11  the taxes are deferred.  Any deferral made under this chapter 
 41.12  shall not be construed as delinquent property taxes. 
 41.13     The lien created under section 272.31 continues to secure 
 41.14  payment by the taxpayer, or by the taxpayer's successors or 
 41.15  assigns, of the amount deferred, including interest, with 
 41.16  respect to all years for which amounts are deferred.  The lien 
 41.17  for deferred taxes and interest has the same priority as any 
 41.18  other lien under section 272.31, except that liens, including 
 41.19  mortgages, recorded or filed prior to the recording or filing of 
 41.20  the notice under section 290B.04, subdivision 2, have priority 
 41.21  over the lien for deferred taxes and interest.  A seller's 
 41.22  interest in a contract for deed, in which a qualifying homeowner 
 41.23  is the purchaser or an assignee of the purchaser, has priority 
 41.24  over deferred taxes and interest on deferred taxes, regardless 
 41.25  of whether the contract for deed is recorded or filed.  The lien 
 41.26  for deferred taxes and interest for future years has the same 
 41.27  priority as the lien for deferred taxes and interest for the 
 41.28  first year, which is always higher in priority than any 
 41.29  mortgages or other liens filed, recorded, or created after the 
 41.30  notice recorded or filed under section 290B.04, subdivision 2.  
 41.31  The county treasurer or auditor shall maintain records of the 
 41.32  deferred portion and shall list the amount of deferred taxes for 
 41.33  the year and the cumulative deferral and interest for all 
 41.34  previous years as a lien against the property.  In any 
 41.35  certification of unpaid taxes for a tax parcel, the county 
 41.36  auditor shall clearly distinguish between taxes payable in the 
 42.1   current year, deferred taxes and interest, and delinquent 
 42.2   taxes.  Payment of the deferred portion becomes due and owing at 
 42.3   the time specified in section 290B.08.  Upon receipt of the 
 42.4   payment, the commissioner shall issue a receipt for it to the 
 42.5   person making the payment upon request and shall notify the 
 42.6   auditor of the county in which the parcel is located, within ten 
 42.7   days, identifying the parcel to which the payment applies.  Upon 
 42.8   receipt by the commissioner of revenue of collected funds in the 
 42.9   amount of the deferral, the state's loan to the program 
 42.10  participant is deemed paid in full. 
 42.11     (b) If property for which taxes have been deferred under 
 42.12  this chapter forfeits under chapter 281 for nonpayment of a 
 42.13  nondeferred property tax amount, or because of nonpayment of 
 42.14  amounts previously deferred following a termination under 
 42.15  section 290B.08, the lien for the taxes deferred under this 
 42.16  chapter, plus interest and costs, shall be canceled by the 
 42.17  county auditor as provided in section 282.07.  However, 
 42.18  notwithstanding any other law to the contrary, any proceeds from 
 42.19  a subsequent sale of the property under chapter 282 or another 
 42.20  law, must be used to first reimburse the county's forfeited tax 
 42.21  sale fund for any direct costs of selling the property or any 
 42.22  costs directly related to preparing the property for sale, and 
 42.23  then to reimburse the state for the amount of the canceled 
 42.24  lien.  Within 90 days of the receipt of any sale proceed to 
 42.25  which the state is entitled under these provisions, the county 
 42.26  auditor must pay those funds to the commissioner of revenue by 
 42.27  warrant for deposit in the general fund.  No other deposit, use, 
 42.28  distribution, or release of gross sale proceeds or receipts may 
 42.29  be made by the county until payments sufficient to fully 
 42.30  reimburse the state for the canceled lien amount have been 
 42.31  transmitted to the commissioner. 
 42.32     EFFECTIVE DATE:  This section and sections 23 to 26 apply 
 42.33  to all homeowners and all property taxes deferred beginning in 
 42.34  payable 2001, including those homeowners who initially qualified 
 42.35  under this program for taxes payable in 1999 or 2000, except 
 42.36  that if a homeowner did not qualify for any property tax 
 43.1   deferral for payable 2000 because of the percentage threshold in 
 43.2   Minnesota Statutes, section 290B.03, subdivision 1, paragraph 
 43.3   (8), or the prohibition on qualification of owners of property 
 43.4   with delinquent taxes or special assessments, and now qualifies 
 43.5   for the program with the changes in those provisions, the 
 43.6   homeowner may apply to the commissioner by July 1, 2000, and 
 43.7   request a retroactive qualification into the program for taxes 
 43.8   payable in 2000.  The commissioner of revenue shall notify the 
 43.9   county auditor of such eligible taxpayers.  The commissioner 
 43.10  shall make payment to the county for the appropriate amount due 
 43.11  for taxes payable in 2000, and the county treasurer shall refund 
 43.12  the taxpayer for any excess tax amount that the taxpayer has 
 43.13  paid to the county. 
 43.14     Sec. 28.  Minnesota Statutes 1998, section 290B.08, 
 43.15  subdivision 1, is amended to read: 
 43.16     Subdivision 1.  [TERMINATION.] (a) The deferral of taxes 
 43.17  granted under this chapter terminates when one of the following 
 43.18  occurs: 
 43.19     (1) the property is sold or transferred; 
 43.20     (2) the death of the all qualifying 
 43.21  homeowner(s) homeowners; 
 43.22     (3) the homeowner notifies the commissioner in writing that 
 43.23  the homeowner desires to discontinue the deferral; or 
 43.24     (4) the property no longer qualifies as a homestead. 
 43.25     (b) A property is not terminated from the program because 
 43.26  no deferred property tax amount is determined on the homestead 
 43.27  for any given year after the homestead's initial enrollment into 
 43.28  the program. 
 43.29     EFFECTIVE DATE:  This section is effective for deferrals of 
 43.30  property taxes payable in 2001 and thereafter. 
 43.31     Sec. 29.  Minnesota Statutes 1998, section 290B.08, 
 43.32  subdivision 2, is amended to read: 
 43.33     Subd. 2.  [PAYMENT UPON TERMINATION.] Upon the termination 
 43.34  of the deferral under subdivision 1, the amount of deferred 
 43.35  taxes and, penalties, interest, and special assessments, plus 
 43.36  the recording or filing fees under both section 290B.04, 
 44.1   subdivision 2, and this subdivision becomes due and payable to 
 44.2   the commissioner within 90 days of termination of the deferral 
 44.3   for terminations under subdivision 1, paragraph (a), clauses (1) 
 44.4   and (2), and within one year of termination of the deferral for 
 44.5   terminations under subdivision 1, paragraph (a), clauses (3) and 
 44.6   (4).  No additional interest is due on the deferral if timely 
 44.7   paid.  On receipt of payment, the commissioner shall within ten 
 44.8   days notify the auditor of the county in which the parcel is 
 44.9   located, identifying the parcel to which the payment applies and 
 44.10  shall remit the recording or filing fees under section 290B.04, 
 44.11  subdivision 2, and this subdivision to the auditor.  A notice of 
 44.12  termination of deferral, containing the legal description and 
 44.13  the recording or filing data for the notice of qualification for 
 44.14  deferral under section 290B.04, subdivision 2, shall be prepared 
 44.15  and recorded or filed by the county auditor in the same office 
 44.16  in which the notice of qualification for deferral under section 
 44.17  290B.04, subdivision 2, was recorded or filed, and the county 
 44.18  auditor shall mail a copy of the notice of termination to the 
 44.19  property owner.  The property owner shall pay the recording or 
 44.20  filing fees.  Upon recording or filing of the notice of 
 44.21  termination of deferral, the notice of qualification for 
 44.22  deferral under section 290B.04, subdivision 2, and the lien 
 44.23  created by it are discharged.  If the deferral is not timely 
 44.24  paid, the penalty, interest, lien, forfeiture, and other rules 
 44.25  for the collection of ad valorem property taxes apply. 
 44.26     Sec. 30.  Minnesota Statutes 1998, section 290B.09, 
 44.27  subdivision 2, is amended to read: 
 44.28     Subd. 2.  [APPROPRIATION.] An amount sufficient to pay the 
 44.29  total amount of property tax determined under subdivision 1, 
 44.30  plus any amounts paid under section 290B.04, subdivision 7, is 
 44.31  annually appropriated from the general fund to the commissioner 
 44.32  of revenue. 
 44.33     EFFECTIVE DATE:  This section and section 29 apply to all 
 44.34  homeowners and all property taxes deferred beginning in payable 
 44.35  2001, including those homeowners who initially qualified under 
 44.36  this program for taxes payable in 1999 or 2000, except that if a 
 45.1   homeowner did not qualify for any property tax deferral for 
 45.2   payable 2000 because of the percentage threshold in Minnesota 
 45.3   Statutes, section 290B.03, subdivision 1, paragraph (8), or the 
 45.4   prohibition on qualification of owners of property with 
 45.5   delinquent taxes or special assessments, and now qualifies for 
 45.6   the program with the changes in those provisions, the homeowner 
 45.7   may apply to the commissioner by July 1, 2000, and request a 
 45.8   retroactive qualification into the program for taxes payable in 
 45.9   2000.  The commissioner of revenue shall notify the county 
 45.10  auditor of such eligible taxpayers.  The commissioner shall make 
 45.11  payment to the county for the appropriate amount due for taxes 
 45.12  payable in 2000, and the county treasurer shall refund the 
 45.13  taxpayer for any excess tax amount that the taxpayer has paid to 
 45.14  the county. 
 45.15     Sec. 31.  Minnesota Statutes 1998, section 429.011, 
 45.16  subdivision 2a, is amended to read: 
 45.17     Subd. 2a.  [MUNICIPALITY.] "Municipality" also includes a 
 45.18  county in the case of construction, reconstruction, or 
 45.19  improvement of a county state-aid highway or county highway as 
 45.20  defined in section 160.02 including curbs and gutters and storm 
 45.21  sewers and includes; a county exercising its powers and duties 
 45.22  under section 444.075, subdivision 1; and a county for expenses 
 45.23  not paid for under section 403.113, subdivision 3, paragraph 
 45.24  (b), clause (3). 
 45.25     Sec. 32.  Minnesota Statutes 1998, section 429.011, 
 45.26  subdivision 5, is amended to read: 
 45.27     Subd. 5.  [IMPROVEMENT.] "Improvement" means any type of 
 45.28  improvement made under authority granted by section 429.021, 
 45.29  and.  In the case of a county, improvement is limited to: 
 45.30     (1) the construction, reconstruction, or improvement of a 
 45.31  county state-aid highway or county highway including curbs and 
 45.32  gutters and storm sewers; and 
 45.33     (2) the purchase, installation, or replacement of signs, 
 45.34  posts, and markers for addressing related to the operation of 
 45.35  enhanced 911 telephone service. 
 45.36     Sec. 33.  Minnesota Statutes 1998, section 429.021, 
 46.1   subdivision 1, is amended to read: 
 46.2      Subdivision 1.  [IMPROVEMENTS AUTHORIZED.] The council of a 
 46.3   municipality shall have power to make the following improvements:
 46.4      (1) To acquire, open, and widen any street, and to improve 
 46.5   the same by constructing, reconstructing, and maintaining 
 46.6   sidewalks, pavement, gutters, curbs, and vehicle parking strips 
 46.7   of any material, or by grading, graveling, oiling, or otherwise 
 46.8   improving the same, including the beautification thereof and 
 46.9   including storm sewers or other street drainage and connections 
 46.10  from sewer, water, or similar mains to curb lines. 
 46.11     (2) To acquire, develop, construct, reconstruct, extend, 
 46.12  and maintain storm and sanitary sewers and systems, including 
 46.13  outlets, holding areas and ponds, treatment plants, pumps, lift 
 46.14  stations, service connections, and other appurtenances of a 
 46.15  sewer system, within and without the corporate limits. 
 46.16     (3) To construct, reconstruct, extend, and maintain steam 
 46.17  heating mains. 
 46.18     (4) To install, replace, extend, and maintain street lights 
 46.19  and street lighting systems and special lighting systems. 
 46.20     (5) To acquire, improve, construct, reconstruct, extend, 
 46.21  and maintain water works systems, including mains, valves, 
 46.22  hydrants, service connections, wells, pumps, reservoirs, tanks, 
 46.23  treatment plants, and other appurtenances of a water works 
 46.24  system, within and without the corporate limits. 
 46.25     (6) To acquire, improve and equip parks, open space areas, 
 46.26  playgrounds, and recreational facilities within or without the 
 46.27  corporate limits. 
 46.28     (7) To plant trees on streets and provide for their 
 46.29  trimming, care, and removal. 
 46.30     (8) To abate nuisances and to drain swamps, marshes, and 
 46.31  ponds on public or private property and to fill the same. 
 46.32     (9) To construct, reconstruct, extend, and maintain dikes 
 46.33  and other flood control works. 
 46.34     (10) To construct, reconstruct, extend, and maintain 
 46.35  retaining walls and area walls. 
 46.36     (11) To acquire, construct, reconstruct, improve, alter, 
 47.1   extend, operate, maintain, and promote a pedestrian skyway 
 47.2   system.  Such improvement may be made upon a petition pursuant 
 47.3   to section 429.031, subdivision 3.  
 47.4      (12) To acquire, construct, reconstruct, extend, operate, 
 47.5   maintain, and promote underground pedestrian concourses. 
 47.6      (13) To acquire, construct, improve, alter, extend, 
 47.7   operate, maintain, and promote public malls, plazas or 
 47.8   courtyards. 
 47.9      (14) To construct, reconstruct, extend, and maintain 
 47.10  district heating systems.  
 47.11     (15) To construct, reconstruct, alter, extend, operate, 
 47.12  maintain, and promote fire protection systems in existing 
 47.13  buildings, but only upon a petition pursuant to section 429.031, 
 47.14  subdivision 3.  
 47.15     (16) To acquire, construct, reconstruct, improve, alter, 
 47.16  extend, and maintain highway sound barriers. 
 47.17     (17) To improve, construct, reconstruct, extend, and 
 47.18  maintain gas and electric distribution facilities owned by a 
 47.19  municipal gas or electric utility. 
 47.20     (18) To purchase, install, and replace signs, posts, and 
 47.21  other markers for addressing related to the operation of 
 47.22  enhanced 911 telephone service. 
 47.23     Sec. 34.  Minnesota Statutes 1998, section 429.031, 
 47.24  subdivision 1, is amended to read: 
 47.25     Subdivision 1.  [PREPARATION OF PLANS, NOTICE OF HEARING.] 
 47.26  (a) Before the municipality awards a contract for an improvement 
 47.27  or orders it made by day labor, or before the municipality may 
 47.28  assess any portion of the cost of an improvement to be made 
 47.29  under a cooperative agreement with the state or another 
 47.30  political subdivision for sharing the cost of making the 
 47.31  improvement, the council shall hold a public hearing on the 
 47.32  proposed improvement following two publications in the newspaper 
 47.33  of a notice stating the time and place of the hearing, the 
 47.34  general nature of the improvement, the estimated cost, and the 
 47.35  area proposed to be assessed.  The two publications must be a 
 47.36  week apart, and the hearing must be at least three days after 
 48.1   the second publication.  Not less than ten days before the 
 48.2   hearing, notice of the hearing must also be mailed to the owner 
 48.3   of each parcel within the area proposed to be assessed with a 
 48.4   reasonable estimate of the amount to be assessed against each 
 48.5   parcel, but failure to give mailed notice or any defects in the 
 48.6   notice does not invalidate the proceedings.  For the purpose of 
 48.7   giving mailed notice, owners are those shown as owners on the 
 48.8   records of the county auditor or, in any county where tax 
 48.9   statements are mailed by the county treasurer, on the records of 
 48.10  the county treasurer; but other appropriate records may be used 
 48.11  for this purpose.  For properties that are tax exempt or subject 
 48.12  to taxation on a gross earnings basis and are not listed on the 
 48.13  records of the county auditor or the county treasurer, the 
 48.14  owners may be ascertained by any practicable means, and mailed 
 48.15  notice must be given them as provided in this subdivision.  
 48.16     (b) Before the adoption of a resolution ordering the 
 48.17  improvement, the council shall secure from the city engineer or 
 48.18  some other competent person of its selection a report advising 
 48.19  it in a preliminary way as to whether the proposed improvement 
 48.20  is necessary, cost-effective, and feasible and as to whether it 
 48.21  should best be made as proposed or in connection with some other 
 48.22  improvement.  The report must also include the estimated cost of 
 48.23  the improvement as recommended with a reasonable estimate of the 
 48.24  amount to be assessed against each parcel.  No error or omission 
 48.25  in the report invalidates the proceeding unless it materially 
 48.26  prejudices the interests of an owner. 
 48.27     (c) If the report is not prepared by an employee of a 
 48.28  municipality, the compensation for preparing the report under 
 48.29  this subdivision must be based on the following factors: 
 48.30     (1) the time and labor required; 
 48.31     (2) the experience and knowledge of the preparer; 
 48.32     (3) the complexity and novelty of the problems involved; 
 48.33  and 
 48.34     (4) the extent of the responsibilities assumed. 
 48.35     (d) The compensation must not be based primarily on a 
 48.36  percentage of the estimated cost of the improvement. 
 49.1      (e) The council may also take other steps prior to the 
 49.2   hearing, including, among other things, the preparation of plans 
 49.3   and specifications and the advertisement for bids that will in 
 49.4   its judgment provide helpful information in determining the 
 49.5   desirability and feasibility of the improvement.  
 49.6      (f) The hearing may be adjourned from time to time, and a 
 49.7   resolution ordering the improvement may be adopted at any time 
 49.8   within six months after the date of the hearing by vote of a 
 49.9   majority of all members of the council when the improvement has 
 49.10  been petitioned for by the owners of not less than 35 percent in 
 49.11  frontage of the real property abutting on the streets named in 
 49.12  the petition as the location of the improvement.  When there has 
 49.13  been no such petition, the resolution may be adopted only by 
 49.14  vote of four-fifths of all members of the council; provided that 
 49.15  if the mayor of the municipality is a member of the council but 
 49.16  has no vote or votes only in case of a tie, the mayor is not 
 49.17  deemed to be a member for the purpose of determining a 
 49.18  four-fifths majority vote.  
 49.19     (g) The resolution ordering the improvement may reduce, but 
 49.20  not increase, the extent of the improvement as stated in the 
 49.21  notice of hearing. 
 49.22     Sec. 35.  Minnesota Statutes 1998, section 469.040, is 
 49.23  amended by adding a subdivision to read: 
 49.24     Subd. 5.  [DESIGNATED HOUSING CORPORATIONS.] Property 
 49.25  located within the exterior boundaries of the White Earth Indian 
 49.26  reservation that is owned by the tribe's designated housing 
 49.27  entity as defined in United States Code, title 25, section 4103, 
 49.28  paragraph 21, and that is a housing project or a housing 
 49.29  development project, as defined in section 469.002, subdivisions 
 49.30  13 and 15, is exempt from all real and personal property taxes 
 49.31  of the city, county, state, or any political subdivision 
 49.32  thereof, but the property is subject to subdivision 3.  A copy 
 49.33  of those portions of the annual reports submitted on behalf of 
 49.34  the housing entity to the secretary of the United States 
 49.35  Department of Housing and Urban Development for the project that 
 49.36  contain information sufficient to determine the amount due under 
 50.1   subdivision 3 satisfies the reporting requirements of 
 50.2   subdivision 3 for the project. 
 50.3      Sec. 36.  Minnesota Statutes 1999 Supplement, section 
 50.4   473.39, subdivision 1g, is amended to read: 
 50.5      Subd. 1g.  [OBLIGATIONS; 2000-2002.] In addition to the 
 50.6   authority in subdivisions 1a, 1b, 1c, 1d, and 1e, the council 
 50.7   may issue certificates of indebtedness, bonds, or other 
 50.8   obligations under this section in an amount not exceeding 
 50.9   $36,000,000 $55,400,000, which may be used for capital 
 50.10  expenditures, other than for construction, maintenance, or 
 50.11  operation of light rail transit, as prescribed in the council's 
 50.12  transit capital improvement program and for related costs, 
 50.13  including the costs of issuance and sale of the obligations.  
 50.14  The funds must be proportionally spent on capital improvement 
 50.15  projects as recommended by the regional transit capital 
 50.16  evaluation committee.  This section applies in the counties of 
 50.17  Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 
 50.18     Sec. 37.  Minnesota Statutes 1998, section 473.39, is 
 50.19  amended by adding a subdivision to read: 
 50.20     Subd. 1h.  [OBLIGATIONS.] (a) After July 1, 2001, in 
 50.21  addition to the authority in subdivisions 1a, 1b, 1c, 1d, 1e, 
 50.22  and 1g, the council may issue certificates of indebtedness, 
 50.23  bonds, or other obligations under this section for capital 
 50.24  expenditures as prescribed in the council's regional transit 
 50.25  master plan and transit capital improvement program and for 
 50.26  related costs including the costs of issuance and sale of the 
 50.27  obligations.  The amount of the obligations issued under this 
 50.28  subdivision in any year may not exceed an amount equal to the 
 50.29  following limitations, except as provided in this subdivision: 
 50.30     (1) for 2002, the limitation is $40,000,000; and 
 50.31     (2) for each subsequent year, the limitation is equal to 
 50.32  the previous year's limitation calculated under this subdivision 
 50.33  adjusted for inflation using the United States Department of 
 50.34  Labor's Bureau of Labor Statistics Minneapolis-St. Paul Consumer 
 50.35  Price Index for All Urban Consumers (CPI-U) for the previous 
 50.36  taxes payable year or three percent, whichever amount is less. 
 51.1      (b) In any year in which the council does not issue 
 51.2   obligations totaling the limitation calculated under this 
 51.3   subdivision, the council's limitation for the following year is 
 51.4   increased by the difference between the previous year's 
 51.5   limitation calculated under this subdivision and the amount 
 51.6   issued in the previous year, or 20 percent of the previous 
 51.7   year's limitation, whichever is less.  Any limitation increase 
 51.8   carried forward under this subdivision is available only in the 
 51.9   following year and is not a permanent increase in the annual 
 51.10  limitation calculated under this subdivision. 
 51.11     Sec. 38.  Minnesota Statutes 1998, section 477A.011, is 
 51.12  amended by adding a subdivision to read: 
 51.13     Subd. 38.  [TEMPORARY BASE ADJUSTMENT.] (a) The city aid 
 51.14  base for a city is increased as provided in paragraph (b) in 
 51.15  2001 and 2002 only, and the maximum amount of total aid it may 
 51.16  receive under section 477A.013, subdivision 9, paragraph (c), is 
 51.17  also increased as provided in paragraph (b) in calendar year 
 51.18  2001 only, provided that: 
 51.19     (1) it had a population in 1999 of 5,000 or less; 
 51.20     (2) the per capita net tax capacity of the city calculated 
 51.21  using its 1999 population and 1999 net tax capacity is equal to 
 51.22  or less than 110 percent of the average 1999 per capita net tax 
 51.23  capacity for all cities; and 
 51.24     (3) the 2001 local government aid of the city under section 
 51.25  477A.013 before adjustment under this subdivision is less than 
 51.26  64 percent of the amount that the formula aid of the city would 
 51.27  have been if the need increase percentage was 100 percent. 
 51.28     (b) The adjustment is equal to the positive difference, if 
 51.29  any, between: 
 51.30     (1) 64 percent of the amount that the formula aid of the 
 51.31  city would have been for aid payable in 2001 if the need 
 51.32  increase percentage was 100 percent; and 
 51.33     (2) the 2001 local government aid of the city under section 
 51.34  477A.013 after reductions made under sections 273.1399, 
 51.35  subdivision 5, and 477A.014, subdivision 5, but before 
 51.36  adjustment under this subdivision. 
 52.1      Sec. 39.  Minnesota Statutes 1998, section 477A.0121, 
 52.2   subdivision 4, is amended to read: 
 52.3      Subd. 4.  [PUBLIC DEFENDER COSTS.] Each calendar year, 1.5 
 52.4   percent of the total appropriation for this section, other than 
 52.5   the amount appropriated under section 477A.03, subdivision 2, 
 52.6   paragraph (b)(ii), shall be retained by the commissioner of 
 52.7   revenue to make reimbursements to the commissioner of finance 
 52.8   for payments made under section 611.27.  The reimbursements 
 52.9   shall be to defray the additional costs associated with 
 52.10  court-ordered counsel under section 611.27.  Any retained 
 52.11  amounts not used for reimbursement in a year shall be included 
 52.12  in the next distribution of county criminal justice aid that is 
 52.13  certified to the county auditors for the purpose of property tax 
 52.14  reduction for the next taxes payable year.  
 52.15     Sec. 40.  [477A.0123] [CHARITY CARE AID.] 
 52.16     Subdivision 1.  [PURPOSE.] The purpose of charity care aid 
 52.17  is to prevent or reduce the reliance on county property taxes to 
 52.18  meet the cost of providing medical care to individuals who are 
 52.19  indigent and who do not reside in the county. 
 52.20     Subd. 2.  [QUALIFICATION.] A county qualifies for payment 
 52.21  in 2001 and 2002 only under this section if it contains a 
 52.22  hospital that has a medical assistance disproportionate 
 52.23  population adjustment as determined under section 256.969, 
 52.24  subdivision 9, greater than 16 percent. 
 52.25     Subd. 3.  [REPORTS BY HOSPITALS AND COUNTIES.] (a) By June 
 52.26  1 of 2000 and 2001, a hospital described in subdivision 2 must 
 52.27  file a report with the county in which it is located setting 
 52.28  forth its audited financial statements and a schedule setting 
 52.29  forth the aggregate amount of charity care for the previous 
 52.30  calendar year that meets the following criteria: 
 52.31     (1) the patient is from a county other than the county in 
 52.32  which the hospital is located; and 
 52.33     (2) the hospital has made a preliminary determination that: 
 52.34     (i) the patient is not eligible for any public health care 
 52.35  program or it cannot be determined whether the person is 
 52.36  eligible for any public health care program; and 
 53.1      (ii) the person is uninsured or it cannot be determined if 
 53.2   the person is uninsured or the person has insufficient resources 
 53.3   to pay the cost of services delivered by the hospital. 
 53.4      (b) By July 1 of 2000 and 2001, each county must report to 
 53.5   the commissioner of revenue the total amount of charity care 
 53.6   reported to it by hospitals under this subdivision.  
 53.7      Subd. 4.  [AMOUNT OF AID.] (a) Subject to the limitation in 
 53.8   paragraph (b), payment to a county under this section is equal 
 53.9   to the aggregate amount of charity care, as reported under 
 53.10  subdivision 3. 
 53.11     (b) The total of all payments under this section each year 
 53.12  may not exceed $10,000,000.  If the amounts reported under 
 53.13  subdivision 3 for all counties exceeds $10,000,000 for a year, 
 53.14  the distributions to each county must be allocated in proportion 
 53.15  to the total amount of uncompensated care reported to the 
 53.16  commissioner by the county so that the total of the payments for 
 53.17  the year does not exceed $10,000,000. 
 53.18     Subd. 5.  [PAYMENT DATES.] The aid amounts must be paid as 
 53.19  provided in section 477A.015. 
 53.20     Subd. 6.  [USE OF FUNDS.] Each county that receives a 
 53.21  payment under this section must remit all charity care aid funds 
 53.22  to hospitals described in subdivision 2 that apply to the county 
 53.23  for reimbursement.  If the aid a county receives is less than 
 53.24  the total amount of uncompensated care reported by eligible 
 53.25  hospitals in the county, the aid amounts remitted to the 
 53.26  hospitals must be proportional to the amounts reported. 
 53.27     Subd. 7.  [REPORT TO THE COMMISSIONER.] By March 15 of the 
 53.28  year following the year when the aid was received, each county 
 53.29  that receives the aid must file a report with the commissioner 
 53.30  of revenue describing how charity care aids were spent, and 
 53.31  verifying that they were paid to hospitals described in 
 53.32  subdivision 2 for charity care purposes for individuals who do 
 53.33  not reside in the county. 
 53.34     Subd. 8.  [NOTICE TO COUNTIES.] The commissioner of revenue 
 53.35  shall annually notify the governing body of each county, 
 53.36  providing information, to the extent available to the 
 54.1   commissioner, regarding the amount of reimbursements paid under 
 54.2   this section attributable to care provided to residents of that 
 54.3   county. 
 54.4      Subd. 9.  [APPROPRIATIONS.] The amounts sufficient to make 
 54.5   the payments under this section are appropriated from the 
 54.6   general fund to the commissioner of revenue. 
 54.7      EFFECTIVE DATE:  This section is effective for aids payable 
 54.8   in 2001 and 2002. 
 54.9      Sec. 41.  Minnesota Statutes 1999 Supplement, section 
 54.10  477A.03, subdivision 2, is amended to read: 
 54.11     Subd. 2.  [ANNUAL APPROPRIATION.] (a) A sum sufficient to 
 54.12  discharge the duties imposed by sections 477A.011 to 477A.014 is 
 54.13  annually appropriated from the general fund to the commissioner 
 54.14  of revenue.  
 54.15     (b)(i) Aid payments to counties under section 477A.0121 are 
 54.16  limited to $20,265,000 in 1996.  Aid payments to counties under 
 54.17  section 477A.0121 are limited to $27,571,625 in 1997.  For aid 
 54.18  payable in 1998 and thereafter, the total aids paid under 
 54.19  section 477A.0121 are the amounts certified to be paid in the 
 54.20  previous year, adjusted for inflation as provided under 
 54.21  subdivision 3.  
 54.22     (ii) Aid payments to counties under section 477A.0121 in 
 54.23  2001 are further increased by an additional $10,000,000 in 2001. 
 54.24     (c)(i) For aids payable in 1998 and thereafter, the total 
 54.25  aids paid to counties under section 477A.0122 are the amounts 
 54.26  certified to be paid in the previous year, adjusted for 
 54.27  inflation as provided under subdivision 3. 
 54.28     (ii) Aid payments to counties under section 477A.0122 in 
 54.29  2000 are further increased by an additional $20,000,000 in 2000. 
 54.30     (d) Aid payments to cities in 1999 under section 477A.013, 
 54.31  subdivision 9, are limited to $380,565,489.  For aids payable in 
 54.32  2000 and 2001, the total aids paid under section 477A.013, 
 54.33  subdivision 9, are the amounts certified to be paid in the 
 54.34  previous year, adjusted for inflation as provided under 
 54.35  subdivision 3.  For aids payable in 2002, the total aids paid 
 54.36  under section 477A.013, subdivision 9, are the amounts certified 
 55.1   to be paid in the previous year, adjusted for inflation as 
 55.2   provided under subdivision 3, and increased by the amount 
 55.3   certified to be paid in 2001 under section 477A.06.  For aids 
 55.4   payable in 2003 and thereafter, the total aids paid under 
 55.5   section 477A.013, subdivision 9, are the amounts certified to be 
 55.6   paid in the previous year, adjusted for inflation as provided 
 55.7   under subdivision 3.  The additional amount authorized under 
 55.8   subdivision 4 is not included when calculating the appropriation 
 55.9   limits under this paragraph. 
 55.10     Sec. 42.  Minnesota Statutes 1998, section 477A.03, is 
 55.11  amended by adding a subdivision to read: 
 55.12     Subd. 5.  [2001 AND 2002 ADJUSTMENT.] The appropriation 
 55.13  under subdivision 2 for aid payable in 2001 is increased by 
 55.14  $6,700,000.  This amount is included in the base appropriation 
 55.15  subject to the inflation adjustment under subdivision 3 for aid 
 55.16  payable in 2002 only. 
 55.17     Sec. 43.  Minnesota Statutes 1999 Supplement, section 
 55.18  477A.06, subdivision 1, is amended to read: 
 55.19     Subdivision 1.  [ELIGIBILITY.] (a) For assessment years 
 55.20  1998, 1999, and 2000 and 2001, for all class 4d property on 
 55.21  which construction was begun before January 1, 1999, the 
 55.22  assessor shall determine the difference between the actual net 
 55.23  tax capacity and the net tax capacity that would be determined 
 55.24  for the property if the class rates for assessment year 1997 
 55.25  were in effect. 
 55.26     (b) In calendar year 2001 and 2002, each city that is an 
 55.27  impacted community shall be eligible for aid equal to (i) the 
 55.28  amount by which the difference determined in paragraph (a) for 
 55.29  the corresponding assessment year exceeds one percent of the 
 55.30  city's total taxable net tax capacity for taxes payable in 1998, 
 55.31  multiplied by (ii) the city government's average local tax rate 
 55.32  for taxes payable in 1998.  
 55.33     (b) (c) In calendar years 1999, 2000, and 2001 and 2002, 
 55.34  each city that is not an impacted community shall be eligible 
 55.35  for aid equal to (i) the amount by which the sum of the 
 55.36  differences determined in clause paragraph (a) for the 
 56.1   corresponding assessment year exceeds two 1.5 percent of the 
 56.2   city's total taxable net tax capacity for taxes payable in 1998, 
 56.3   multiplied by (ii) the city government's average local tax rate 
 56.4   for taxes payable in 1998. 
 56.5      (d) For purposes of this section, "impacted community" 
 56.6   means a home rule or statutory city that meets all of the 
 56.7   following requirements:  
 56.8      (1) the city has at least 250 multifamily housing units, 
 56.9   excluding duplexes, converted duplexes, triplexes, senior 
 56.10  assisted living facilities, and student housing; 
 56.11     (2) the city has at least 25 percent of its multifamily 
 56.12  housing units classified as class 4d property; and 
 56.13     (3) the city meets the 1.5 percent requirement for aid 
 56.14  payments under paragraph (c).  
 56.15     EFFECTIVE DATE:  This section is effective for aid paid in 
 56.16  calendar years 2001 and 2002. 
 56.17     Sec. 44.  Minnesota Statutes 1998, section 477A.06, 
 56.18  subdivision 2, is amended to read: 
 56.19     Subd. 2.  [CERTIFICATION.] (a) The county assessor shall 
 56.20  notify the commissioner of revenue of the amount determined 
 56.21  under subdivision 1, paragraph (b), clause (i), for any city 
 56.22  that is an impacted community by June 30 of the assessment year, 
 56.23  in a form prescribed by the commissioner.  
 56.24     (b) The county assessor shall notify the commissioner of 
 56.25  revenue of the amount determined under subdivision 1, 
 56.26  paragraph (b) (c), clause (i), for any city that is not an 
 56.27  impacted community which qualifies for aid under this section by 
 56.28  June 30 of the assessment year, in a form prescribed by the 
 56.29  commissioner.  
 56.30     (c) The commissioner shall notify each city of its 
 56.31  qualifying aid amount by August 15 of the assessment year.  
 56.32     EFFECTIVE DATE:  This section is effective for aid paid in 
 56.33  calendar years 2001 and 2002. 
 56.34     Sec. 45.  Minnesota Statutes 1998, section 477A.11, 
 56.35  subdivision 1, is amended to read: 
 56.36     Subdivision 1.  [TERMS.] For the purpose of Laws 1979, 
 57.1   Chapter 303, Article 8, Sections 1 to 5 sections 477A.11 to 
 57.2   477A.14, the terms defined in this section have the meanings 
 57.3   given them. 
 57.4      EFFECTIVE DATE:  This section applies to payments made in 
 57.5   calendar year 2001 and thereafter. 
 57.6      Sec. 46.  Minnesota Statutes 1998, section 477A.12, is 
 57.7   amended to read: 
 57.8      477A.12 [ANNUAL APPROPRIATIONS; LANDS ELIGIBLE; 
 57.9   CERTIFICATION OF ACREAGE.] 
 57.10     (a) There is annually appropriated to the commissioner of 
 57.11  natural resources revenue from the general fund for payment to 
 57.12  counties within the state an amount equal to: 
 57.13     (1) for acquired natural resources land, $3, as adjusted 
 57.14  for inflation under section 477A.145, multiplied by the total 
 57.15  number of acres of acquired natural resources land or, beginning 
 57.16  July 1, 1996, at the county's option three-fourths of one 
 57.17  percent of the appraised value of all acquired natural resources 
 57.18  land in the county, whichever is greater; 
 57.19     (2) 75 cents, as adjusted for inflation under section 
 57.20  477A.145, multiplied by the number of acres of 
 57.21  county-administered other natural resources land; and 
 57.22     (3) 37.5 cents, as adjusted for inflation under section 
 57.23  477A.145, multiplied by the number of acres of 
 57.24  commissioner-administered other natural resources land located 
 57.25  in each county as of July 1 of each year prior to the payment 
 57.26  year. 
 57.27     (b) Lands for which payments in lieu are made pursuant to 
 57.28  section 97A.061, subdivision 3, and Laws 1973, chapter 567, 
 57.29  shall not be eligible for payments under this section.  Each 
 57.30  county auditor shall certify to the department of natural 
 57.31  resources during July of each year prior to the payment year the 
 57.32  number of acres of county-administered other natural resources 
 57.33  land within the county.  The department of natural resources 
 57.34  may, in addition to the certification of acreage, require 
 57.35  descriptive lists of land so certified.  The commissioner of 
 57.36  natural resources shall determine and certify to the 
 58.1   commissioner of revenue by March 1 of the payment year:  
 58.2      (1) the number of acres and most recent appraised value of 
 58.3   acquired natural resources land and within each county; 
 58.4      (2) the number of acres of commissioner-administered 
 58.5   natural resources land within each county; and 
 58.6      (3) the number of acres of county-administered other 
 58.7   natural resources land within each county, based on the reports 
 58.8   filed by each county auditor with the commissioner of natural 
 58.9   resources. 
 58.10     The commissioner of revenue shall determine the 
 58.11  distributions provided for in this section using the number of 
 58.12  acres and appraised values certified by the commissioner of 
 58.13  natural resources by March 1 of the payment year. 
 58.14     (c) For the purposes of this section, the appraised value 
 58.15  of acquired natural resources land is the purchase price for the 
 58.16  first five years after acquisition.  The appraised value of 
 58.17  acquired natural resources land received as a donation is the 
 58.18  value determined for the commissioner of natural resources by a 
 58.19  licensed appraiser, or the county assessor's estimated market 
 58.20  value if no appraisal is done.  The appraised value must be 
 58.21  determined by the county assessor every five years after the 
 58.22  land is acquired. 
 58.23     EFFECTIVE DATE:  This section applies to payments made in 
 58.24  calendar year 2001 and thereafter. 
 58.25     Sec. 47.  Minnesota Statutes 1998, section 477A.13, is 
 58.26  amended to read: 
 58.27     477A.13 [TIME OF PAYMENT, DEDUCTIONS.] 
 58.28     Payments to the counties shall of the amounts determined 
 58.29  under section 477A.12 must be made by the commissioner of 
 58.30  revenue from the general fund during the month of July of the 
 58.31  year next following certification.  There shall be deducted from 
 58.32  amounts paid any amounts paid to a county or township during the 
 58.33  preceding year pursuant to sections 97A.061, subdivisions 1 and 
 58.34  2, and 272.68, subdivision 3, with respect to the lands 
 58.35  certified pursuant to section 477A.12 at the time provided in 
 58.36  section 477A.015 for the first installment of local government 
 59.1   aid. 
 59.2      EFFECTIVE DATE:  This section applies to payments made in 
 59.3   calendar year 2001 and thereafter. 
 59.4      Sec. 48.  Minnesota Statutes 1998, section 477A.14, is 
 59.5   amended to read: 
 59.6      477A.14 [USE OF FUNDS.] 
 59.7      Forty percent of the total payment to the county shall be 
 59.8   deposited in the county general revenue fund to be used to 
 59.9   provide property tax levy reduction.  The remainder shall be 
 59.10  distributed by the county in the following priority:  
 59.11     (a) 37.5 cents, as adjusted for inflation under section 
 59.12  477A.145, for each acre of county-administered other natural 
 59.13  resources land shall be deposited in a resource development fund 
 59.14  to be created within the county treasury for use in resource 
 59.15  development, forest management, game and fish habitat 
 59.16  improvement, and recreational development and maintenance of 
 59.17  county-administered other natural resources land.  Any county 
 59.18  receiving less than $5,000 annually for the resource development 
 59.19  fund may elect to deposit that amount in the county general 
 59.20  revenue fund; 
 59.21     (b) From the funds remaining, within 30 days of receipt of 
 59.22  the payment to the county, the county treasurer shall pay each 
 59.23  organized township 30 cents per, as adjusted for inflation under 
 59.24  section 477A.145, for each acre of acquired natural resources 
 59.25  land and 7.5 cents per, as adjusted for inflation under section 
 59.26  477A.145, for each acre of other natural resources land located 
 59.27  within its boundaries.  Payments for natural resources lands not 
 59.28  located in an organized township shall be deposited in the 
 59.29  county general revenue fund.  Payments to counties and townships 
 59.30  pursuant to this paragraph shall be used to provide property tax 
 59.31  levy reduction, except that of the payments for natural 
 59.32  resources lands not located in an organized township, the county 
 59.33  may allocate the amount determined to be necessary for 
 59.34  maintenance of roads in unorganized townships.  Provided that, 
 59.35  if the total payment to the county pursuant to section 477A.12 
 59.36  is not sufficient to fully fund the distribution provided for in 
 60.1   this clause, the amount available shall be distributed to each 
 60.2   township and the county general revenue fund on a pro rata 
 60.3   basis; and 
 60.4      (c) Any remaining funds shall be deposited in the county 
 60.5   general revenue fund.  Provided that, if the distribution to the 
 60.6   county general revenue fund exceeds $35,000, the excess shall be 
 60.7   used to provide property tax levy reduction. 
 60.8      EFFECTIVE DATE:  This section applies to payments made in 
 60.9   calendar year 2001 and thereafter. 
 60.10     Sec. 49.  [477A.145] [INFLATION ADJUSTMENT.] 
 60.11     In 2001 and each year thereafter, the amounts required to 
 60.12  be adjusted for inflation in sections 477A.12 and 477A.14 shall 
 60.13  be increased to an amount equal to:  (1) the amount before the 
 60.14  inflation adjustment multiplied by (2) one plus the percentage 
 60.15  increase in the implicit price deflator for government 
 60.16  consumption expenditures and gross investment for state and 
 60.17  local governments prepared by the Bureau of Economic Analysis of 
 60.18  the United States Department of Commerce for the period starting 
 60.19  with 1980 and ending with the calendar year prior to the year in 
 60.20  which aid is paid. 
 60.21     EFFECTIVE DATE:  This section applies to payments made in 
 60.22  calendar year 2001 and thereafter. 
 60.23     Sec. 50.  Minnesota Statutes 1999 Supplement, section 
 60.24  505.08, subdivision 3, is amended to read: 
 60.25     Subd. 3.  [PREMATURE REFERENCE TO PLAT; FORFEITURE.] Any 
 60.26  person who shall dispose of, or lease, or offer to sell any land 
 60.27  included in a plat by reference to the plat before the same is 
 60.28  recorded, shall forfeit to the county $100 for each lot, or part 
 60.29  of a lot, so disposed of, or leased, or offered; and any 
 60.30  official, land surveyor, or person whose duty it is to comply 
 60.31  with any of the provisions of this chapter, shall forfeit not 
 60.32  less than $100 for each month during which compliance is 
 60.33  delayed.  All forfeitures under this chapter shall be recovered 
 60.34  in an action brought in the name of the county.  Notwithstanding 
 60.35  any provisions of this subdivision to the contrary, this 
 60.36  subdivision shall not apply to an offer to sell or lease a unit 
 61.1   in a proposed common interest community as defined in chapter 
 61.2   515B. 
 61.3      Sec. 51.  Laws 1995, First Special Session chapter 3, 
 61.4   article 15, section 25, is amended to read: 
 61.5      Sec. 25.  [HOMESTEAD AND AGRICULTURAL CREDIT ADJUSTMENT.] 
 61.6      (a) For the computation of homestead and agricultural aid 
 61.7   for taxes payable in 1996, the commissioner of revenue shall 
 61.8   reduce a school district's homestead and agricultural aid by an 
 61.9   amount equal to the lesser of:  (1) 25 percent of the amount of 
 61.10  the district's homestead and agricultural aid for calendar year 
 61.11  1995; or (2) an amount equal to one percent times the district's 
 61.12  adjusted net tax capacity for assessment year 1994. 
 61.13     (b) Prior to the computation of homestead and agricultural 
 61.14  aid for taxes payable in 1997, the commissioner of revenue shall 
 61.15  reduce the school district's homestead and agricultural aid by 
 61.16  an amount equal to the lesser of:  (1) 50 percent of the amount 
 61.17  of the district's homestead and agricultural aid for calendar 
 61.18  year 1995; or (2) an amount equal to one percent times the 
 61.19  district's adjusted net tax capacity for assessment year 1994. 
 61.20     (c) Prior to the computation of homestead and agricultural 
 61.21  aid for taxes payable in 1998, the commissioner of revenue shall 
 61.22  reduce a school district's homestead and agricultural aid by an 
 61.23  amount equal to the lesser of:  (1) 75 percent of the amount of 
 61.24  the district's homestead and agricultural aid for calendar year 
 61.25  1995; or (2) an amount equal to one percent times the district's 
 61.26  adjusted net tax capacity for assessment year 1994. 
 61.27     (d) Prior to the computation of homestead and agricultural 
 61.28  aid for taxes payable in 1999, the commissioner of revenue shall 
 61.29  reduce a school district's homestead and agricultural aid by an 
 61.30  amount equal to the lesser of:  (1) the amount of the district's 
 61.31  homestead and agricultural aid for calendar year 1995; or (2) an 
 61.32  amount equal to one percent times the district's adjusted net 
 61.33  tax capacity for assessment year 1994. 
 61.34     (e) Prior to the computation of homestead and agricultural 
 61.35  aid for taxes payable in 2000 and later years, the commissioner 
 61.36  of revenue shall reduce a school district's homestead and 
 62.1   agricultural aid by an amount equal to the lesser of:  (1) any 
 62.2   remaining amount of the district's homestead and agricultural 
 62.3   aid; or (2) an amount equal to one percent times the district's 
 62.4   adjusted net tax capacity for assessment year 1994. 
 62.5      (f) Prior to the computation of homestead and agricultural 
 62.6   credit aid for taxes payable in 2001 and later years, the 
 62.7   commissioner of revenue shall reduce that portion of a school 
 62.8   district's homestead and agricultural credit aid first paid to a 
 62.9   district in calendar year 2000 or an earlier calendar year by an 
 62.10  amount equal to the lesser of:  (1) any remaining amount of the 
 62.11  portion of the district's homestead and agricultural credit aid 
 62.12  first paid to a district in calendar year 2000 or an earlier 
 62.13  calendar year; or (2) an amount equal to one percent times the 
 62.14  district's adjusted net tax capacity for assessment year 1994. 
 62.15     Sec. 52.  [TEMPORARY LOCAL GOVERNMENT AID INCREASE FOR 
 62.16  TOWNS.] 
 62.17     Subdivision 1.  [AID INCREASE.] (a) The total aid a town 
 62.18  may receive under Minnesota Statutes, sections 477A.011 to 
 62.19  477A.014, is increased by $75,000 in calendar year 2000 only if 
 62.20  the town meets all of the following conditions: 
 62.21     (1) it is located outside of a metropolitan county as 
 62.22  defined in Minnesota Statutes, section 473.121, subdivision 4; 
 62.23     (2) it is located in a county that does not contain a city 
 62.24  of the first class; 
 62.25     (3) its local tax rate for taxes levied in 1992 was at 
 62.26  least .022; 
 62.27     (4) its population in 1998 was at least 3,000; and 
 62.28     (5) it incurred legal costs related to a municipal 
 62.29  incorporation proceeding under Minnesota Statutes, chapter 414, 
 62.30  prior to the termination of the municipal board. 
 62.31     (b) The increased payment under paragraph (a) must not be 
 62.32  included in calculating local government aid payments to a town 
 62.33  under Minnesota Statutes, section 477A.013, subdivision 1, in 
 62.34  calendar year 2001, and thereafter.  The increased payment must 
 62.35  not be included in the calculation of any other aids paid under 
 62.36  another law or of any limitations on levies or expenditures. 
 63.1      EFFECTIVE DATE:  This section is effective for aids payable 
 63.2   in calendar year 2000 only. 
 63.3      Sec. 53.  [CAPITOL REGION WATERSHED DISTRICT LEVY LIMIT.] 
 63.4      The capitol region watershed district managers may levy an 
 63.5   annual ad valorem tax of 0.02418 percent of taxable market value 
 63.6   or $200,000, whichever is less, under Minnesota Statutes, 
 63.7   section 103D.905, subdivision 3, notwithstanding the levy limits 
 63.8   in that subdivision. 
 63.9      EFFECTIVE DATE:  This section is effective for taxes levied 
 63.10  in 2000, payable in 2001, and thereafter. 
 63.11     Sec. 54.  [EVELETH-GILBERT JOINT RECREATION BOARD TAX.] 
 63.12     The Eveleth-Gilbert joint recreation board may levy a tax 
 63.13  on the taxable property situated in the territory of independent 
 63.14  school district No. 2154, Eveleth-Gilbert, in accordance with 
 63.15  this section.  Property in territory in the school district may 
 63.16  be made subject to the tax permitted by this section by the 
 63.17  agreement of the governing body or town board of the city or 
 63.18  town where it is located.  The agreement may be by resolution of 
 63.19  a governing body or town board or by a joint powers agreement 
 63.20  pursuant to Minnesota Statutes, section 471.59.  If levied, the 
 63.21  tax is in addition to all other taxes on the property subject to 
 63.22  it that are permitted to be levied for park and recreation 
 63.23  purposes by the cities and towns other than taxes levied for the 
 63.24  support of the joint recreation board.  The tax must be 
 63.25  disregarded in the calculation of all other rate or per capita 
 63.26  tax levy limitations imposed by charter.  A city or town may 
 63.27  withdraw its agreement to future taxes by notice to the 
 63.28  recreation board and the county auditor unless provided 
 63.29  otherwise by a joint powers agreement.  The tax shall be 
 63.30  collected by the St. Louis county auditor and treasurer and paid 
 63.31  directly to the Eveleth-Gilbert joint recreation board.  This 
 63.32  section applies in the cities of Eveleth and Gilbert and in the 
 63.33  town of Fayal, all in St. Louis county. 
 63.34     Sec. 55.  [LAKE OF THE WOODS AND KOOCHICHING COUNTIES; 
 63.35  EXPENDITURES FOR ROAD AND BRIDGE PURPOSES.] 
 63.36     (a) Notwithstanding Minnesota Statutes, section 163.06, 
 64.1   subdivisions 4 and 5, the county board of Lake of the Woods 
 64.2   county, by resolution, may expend the proceeds of the levy under 
 64.3   Minnesota Statutes, section 163.06, in any organized or 
 64.4   unorganized township or portion thereof in the county. 
 64.5      (b) Notwithstanding Minnesota Statutes, section 163.06, 
 64.6   subdivisions 4 and 5, the county board of Koochiching county, by 
 64.7   resolution, may expend the proceeds of the levy under Minnesota 
 64.8   Statutes, section 163.06, in any organized or unorganized 
 64.9   township or portion thereof in the county. 
 64.10     EFFECTIVE DATES:  This section is effective for Lake of the 
 64.11  Woods county upon approval by and compliance with Minnesota 
 64.12  Statutes, section 645.021, subdivision 3.  This section is 
 64.13  effective for Koochiching county upon approval by and compliance 
 64.14  with Minnesota Statutes, section 645.021, subdivision 3. 
 64.15     Sec. 56.  [ST. LOUIS COUNTY; CAPITAL IMPROVEMENT PLAN 
 64.16  DEFINITION.] 
 64.17     For St. Louis county, the St. Louis county heritage and 
 64.18  arts center is deemed to be included in the definition of 
 64.19  "capital improvement" in Minnesota Statutes, section 373.40, 
 64.20  subdivision 1. 
 64.21     EFFECTIVE DATE:  This section is effective upon approval by 
 64.22  the governing body of St. Louis county, and compliance with 
 64.23  Minnesota Statutes, section 645.021, subdivision 3. 
 64.24     Sec. 57.  [COUNTY OF GOODHUE; LEVY LIMITS.] 
 64.25     The levy limit base of the county of Goodhue for taxes 
 64.26  levied in 1999 under Minnesota Statutes, section 275.71, 
 64.27  subdivision 2, paragraph (b), is increased by $422,323. 
 64.28     EFFECTIVE DATE:  This section is effective upon compliance 
 64.29  by the governing body of the county of Goodhue with Minnesota 
 64.30  Statutes, section 645.021, subdivision 3, for taxes levied in 
 64.31  1999, payable in 2000. 
 64.32     Sec. 58.  [STUDY OF TAXATION OF FOREST LAND.] 
 64.33     Subdivision 1.  [AUTHORIZATION.] The commissioner of 
 64.34  revenue, in cooperation with the Minnesota forest resources 
 64.35  council, shall study the taxation of forest land in this state.  
 64.36  The study shall include a review of the current application of 
 65.1   property taxes to these lands and a review and comparison with 
 65.2   other forest land tax policies.  It shall also include 
 65.3   recommendations for changes in tax policy: 
 65.4      (1) to encourage forest productivity; 
 65.5      (2) to maintain land in forest cover; 
 65.6      (3) to encourage the application of sustainable site level 
 65.7   forest management guidelines; 
 65.8      (4) to address impacts on local government revenues; and 
 65.9      (5) for changes in tax rates. 
 65.10  The study shall be completed and transmitted to the chairs of 
 65.11  the house and senate tax committees by December 1, 2000. 
 65.12     Subd. 2.  [APPROPRIATION.] $50,000 is appropriated from the 
 65.13  general fund in fiscal year 2000 to the commissioner of revenue 
 65.14  for completion of the study required in this section.  This 
 65.15  appropriation is available until December 31, 2000. 
 65.16                             ARTICLE 2
 65.17                         LOCAL DEVELOPMENT
 65.18     Section 1.  Minnesota Statutes 1998, section 428A.11, is 
 65.19  amended by adding a subdivision to read: 
 65.20     Subd. 7.  [AUTHORITY.] "Authority" means an economic 
 65.21  development authority or housing and redevelopment authority 
 65.22  created pursuant to section 469.003, 469.004, or 469.091. 
 65.23     Sec. 2.  Minnesota Statutes 1998, section 428A.11, is 
 65.24  amended by adding a subdivision to read: 
 65.25     Subd. 8.  [IMPLEMENTING ENTITY.] "Implementing entity" 
 65.26  means the city or authority designated in the enabling ordinance 
 65.27  as responsible for implementing and administering the housing 
 65.28  improvement area. 
 65.29     Sec. 3.  Minnesota Statutes 1998, section 428A.13, 
 65.30  subdivision 1, is amended to read: 
 65.31     Subdivision 1.  [ORDINANCE.] The governing body of the city 
 65.32  may adopt an ordinance establishing a one or more housing 
 65.33  improvement area areas.  The ordinance must specifically 
 65.34  describe the portion of the city to be included in the area, the 
 65.35  basis for the imposition of the fees, and the number of years 
 65.36  the fee will be in effect.  In addition, the ordinance must 
 66.1   include findings that without the housing improvement area, the 
 66.2   proposed improvements could not be made by the condominium 
 66.3   associations or housing unit owners, and the designation is 
 66.4   needed to maintain and preserve the housing units within the 
 66.5   housing improvement area.  The ordinance shall designate the 
 66.6   implementing entity.  The ordinance may not be adopted until a 
 66.7   public hearing has been held regarding the ordinance.  The 
 66.8   ordinance may be amended by the governing body of the city, 
 66.9   provided the governing body complies with the public hearing 
 66.10  notice provisions of subdivision 2.  Within 30 days after 
 66.11  adoption of the ordinance under this subdivision, the governing 
 66.12  body shall send a copy of the ordinance to the commissioner of 
 66.13  revenue. 
 66.14     Sec. 4.  Minnesota Statutes 1998, section 428A.13, 
 66.15  subdivision 3, is amended to read: 
 66.16     Subd. 3.  [PROPOSED HOUSING IMPROVEMENTS.] At the public 
 66.17  hearing held under subdivision 2, the city proposed implementing 
 66.18  entity shall provide a preliminary listing of the housing 
 66.19  improvements to be made in the area.  The listing shall identify 
 66.20  those improvements, if any, that are proposed to be made to all 
 66.21  or a portion of the common elements of a condominium.  The 
 66.22  listing shall also identify those housing units that have 
 66.23  completed the proposed housing improvements and are proposed to 
 66.24  be exempted from a portion of the fee.  In preparing the list 
 66.25  the city proposed implementing entity shall consult with the 
 66.26  residents of the area and the condominium associations. 
 66.27     Sec. 5.  Minnesota Statutes 1998, section 428A.14, 
 66.28  subdivision 1, is amended to read: 
 66.29     Subdivision 1.  [AUTHORITY.] Fees may be imposed by the 
 66.30  city implementing entity on the housing units within the housing 
 66.31  improvement area at a rate, term, or amount sufficient to 
 66.32  produce revenue required to provide housing improvements in the 
 66.33  area to reimburse the implementing entity for advances made to 
 66.34  pay for the housing improvements or to pay principal of, 
 66.35  interest on, and premiums, if any, on bonds issued by the 
 66.36  implementing entity under section 428A.16.  The fee can be 
 67.1   imposed on the basis of the tax capacity of the housing unit, or 
 67.2   the total amount of square footage of the housing unit, or a 
 67.3   method determined by the council and specified in the resolution.
 67.4   Before the imposition of the fees, a hearing must be held and 
 67.5   notice must be published in the official newspaper at least 
 67.6   seven days before the hearing and shall be mailed at least seven 
 67.7   days before the hearing to any housing unit owner subject to a 
 67.8   fee.  For purposes of this section, the notice must also include:
 67.9      (1) a statement that all interested persons will be given 
 67.10  an opportunity to be heard at the hearing regarding a proposed 
 67.11  housing improvement fee; 
 67.12     (2) the estimated cost of improvements including 
 67.13  administrative costs to be paid for in whole or in part by the 
 67.14  fee imposed under the ordinance; 
 67.15     (3) the amount to be charged against the particular 
 67.16  property; 
 67.17     (4) the right of the property owner to prepay the entire 
 67.18  fee; 
 67.19     (5) the number of years the fee will be in effect; and 
 67.20     (6) a statement that the petition requirements of section 
 67.21  428A.12 have either been met or do not apply to the proposed fee.
 67.22     Within six months of the public hearing, the city 
 67.23  implementing entity may adopt a resolution imposing a fee within 
 67.24  the area not exceeding the amount expressed in the notice issued 
 67.25  under this section. 
 67.26     Prior to adoption of the resolution approving the fee, the 
 67.27  condominium associations located in the housing improvement area 
 67.28  shall submit to the city implementing entity a financial plan 
 67.29  prepared by an independent third party, acceptable to the city 
 67.30  implementing entity and associations, that provides for the 
 67.31  associations to finance maintenance and operation of the common 
 67.32  elements in the condominium and a long-range plan to conduct and 
 67.33  finance capital improvements. 
 67.34     Sec. 6.  Minnesota Statutes 1998, section 428A.15, is 
 67.35  amended to read: 
 67.36     428A.15 [COLLECTION OF FEES.] 
 68.1      The city implementing entity may provide for the collection 
 68.2   of the housing improvement fees according to the terms of 
 68.3   section 428A.05. 
 68.4      Sec. 7.  Minnesota Statutes 1998, section 428A.16, is 
 68.5   amended to read: 
 68.6      428A.16 [BONDS.] 
 68.7      At any time after a contract for the construction of all or 
 68.8   part of an improvement authorized under sections 428A.11 to 
 68.9   428A.20 has been entered into or the work has been ordered, the 
 68.10  governing body of the city implementing entity may issue 
 68.11  obligations in the amount it deems necessary to defray in whole 
 68.12  or in part the expense incurred and estimated to be incurred in 
 68.13  making the improvement, including every item of cost from 
 68.14  inception to completion and all fees and expenses incurred in 
 68.15  connection with the improvement or the financing. 
 68.16     The obligations are payable primarily out of the proceeds 
 68.17  of the fees imposed under section 428A.14, or from any other 
 68.18  special assessments or revenues available to be pledged for 
 68.19  their payment under charter or statutory authority, or from two 
 68.20  or more of those sources.  The governing body of the city, or if 
 68.21  the governing bodies are the same or consist of identical 
 68.22  membership, the authority may, by resolution adopted prior to 
 68.23  the sale of obligations, pledge the full faith, credit, and 
 68.24  taxing power of the city to assure bonds issued by it to ensure 
 68.25  payment of the principal and interest if the proceeds of the 
 68.26  fees in the area are insufficient to pay the principal and 
 68.27  interest.  The obligations must be issued in accordance with 
 68.28  chapter 475, except that an election is not required, and the 
 68.29  amount of the obligations are not included in determination of 
 68.30  the net debt of the city under the provisions of any law or 
 68.31  charter limiting debt. 
 68.32     Sec. 8.  Minnesota Statutes 1998, section 428A.17, is 
 68.33  amended to read: 
 68.34     428A.17 [ADVISORY BOARD.] 
 68.35     The governing body of the city implementing entity may 
 68.36  create and appoint an advisory board for the housing improvement 
 69.1   area in the city to advise the governing body implementing 
 69.2   entity in connection with the planning and construction of 
 69.3   housing improvements.  In appointing the board, the council 
 69.4   implementing entity shall consider for membership members of 
 69.5   condominium associations located in the housing improvement 
 69.6   area.  The advisory board shall make recommendations to 
 69.7   the governing body implementing entity to provide improvements 
 69.8   or impose fees within the housing improvement area.  Before the 
 69.9   adoption of a proposal by the governing body implementing entity 
 69.10  to provide improvements within the housing improvement area, the 
 69.11  advisory board of the housing improvement area shall have an 
 69.12  opportunity to review and comment upon the proposal. 
 69.13     Sec. 9.  Minnesota Statutes 1998, section 428A.19, is 
 69.14  amended to read: 
 69.15     428A.19 [ANNUAL REPORTS.] 
 69.16     Each condominium association located within the housing 
 69.17  improvement area must, by August 15 annually, submit a copy of 
 69.18  its audited financial statements to the city implementing entity.
 69.19  The city may also, as part of the enabling ordinance, require 
 69.20  the submission of other relevant information from the 
 69.21  associations. 
 69.22     Sec. 10.  Minnesota Statutes 1998, section 428A.21, is 
 69.23  amended to read: 
 69.24     428A.21 [SUNSET.] 
 69.25     No new housing improvement areas may be established under 
 69.26  sections 428A.11 to 428A.20 after June 30, 2001 2005.  After 
 69.27  June 30, 2001 2005, a city may establish a housing improvement 
 69.28  area, provided that it receives enabling legislation authorizing 
 69.29  the establishment of the area. 
 69.30     Sec. 11.  Minnesota Statutes 1998, section 469.003, 
 69.31  subdivision 5, is amended to read: 
 69.32     Subd. 5.  [COMMISSIONERS.] An authority shall consist 
 69.33  of five up to seven commissioners, who shall be residents of the 
 69.34  area of operation of the authority, who shall be appointed after 
 69.35  the resolution becomes finally effective.  
 69.36     Sec. 12.  Minnesota Statutes 1998, section 469.006, 
 70.1   subdivision 1, is amended to read: 
 70.2      Subdivision 1.  [COUNTY COMMISSIONERS.] When the governing 
 70.3   body of a county adopts a resolution under section 469.004, the 
 70.4   governing body shall appoint five persons or the number of 
 70.5   commissioners for the governing body, plus up to two additional 
 70.6   commissioners, as commissioners of the county authority.  If any 
 70.7   additional commissioners are appointed, one of the commissioners 
 70.8   must be appointed in accordance with the requirements of the 
 70.9   Code of Federal Regulations, title 24, part 964.  The membership 
 70.10  of the commission will reflect an areawide distribution on a 
 70.11  representative basis.  The commissioners who are first appointed 
 70.12  shall be designated to serve for terms of one, two, three, four, 
 70.13  and five years respectively, from the date of their 
 70.14  appointment.  Thereafter commissioners shall be appointed for a 
 70.15  term of office of five years except that all vacancies shall be 
 70.16  filled for the unexpired term.  Persons may be appointed as 
 70.17  commissioners if they reside within the boundaries or area, and 
 70.18  are otherwise eligible for the appointments under sections 
 70.19  469.001 to 469.047. 
 70.20     Sec. 13.  Minnesota Statutes 1998, section 469.006, 
 70.21  subdivision 2, is amended to read: 
 70.22     Subd. 2.  [MULTICOUNTY COMMISSIONERS.] The governing body 
 70.23  in the case of a county, and the mayor with the approval of the 
 70.24  governing body in the case of a city, of each political 
 70.25  subdivision included in a multicounty authority shall appoint 
 70.26  one person as a commissioner of the authority at or after the 
 70.27  time of the adoption of the resolution establishing the 
 70.28  authority. 
 70.29     In the case of a multicounty authority comprising only two 
 70.30  or three political subdivisions, the appointing authorities of 
 70.31  the participating political subdivisions shall each appoint one 
 70.32  additional commissioner whose term of office shall be as 
 70.33  provided for a commissioner of a multicounty authority.  If any 
 70.34  additional commissioners are appointed, one of the commissioners 
 70.35  must be appointed in accordance with the requirements of the 
 70.36  Code of Federal Regulations, title 24, part 964. 
 71.1      In the case of a multicounty authority comprising more than 
 71.2   three political subdivisions, the appointing authorities of the 
 71.3   participating political subdivisions may each appoint one 
 71.4   additional commissioner whose term of office shall be as 
 71.5   provided for a commissioner of a multicounty authority.  The 
 71.6   housing and redevelopment authority board of commissioners of a 
 71.7   multicounty authority may appoint one or two additional 
 71.8   commissioners in order to comply with the requirements of the 
 71.9   Code of Federal Regulations, title 24, part 964.  The 
 71.10  appointment must be approved by a majority of the commissioners 
 71.11  of each of the political subdivisions comprising the multicounty 
 71.12  authority. 
 71.13     When the area of operation of a multicounty authority is 
 71.14  increased to include an additional political subdivision, the 
 71.15  appointing authority of each additional political subdivision 
 71.16  shall appoint one or, if appropriate, two commissioners of the 
 71.17  multicounty authority.  
 71.18     The appointing authority of each political subdivision 
 71.19  shall appoint the successors of the commissioner appointed by 
 71.20  it.  The commissioners of a multicounty authority shall be 
 71.21  appointed for terms of five years except that all vacancies 
 71.22  shall be filled for the unexpired terms. 
 71.23     Sec. 14.  Minnesota Statutes 1998, section 469.011, 
 71.24  subdivision 4, is amended to read: 
 71.25     Subd. 4.  [EXPENSES; COMPENSATION.] Each commissioner may 
 71.26  receive necessary expenses, including traveling expenses, 
 71.27  incurred in the performance of duties.  Each commissioner may be 
 71.28  paid up to $55 $75 for attending each regular and special 
 71.29  meeting of the authority.  Commissioners who are full-time state 
 71.30  employees or full-time employees of the political subdivisions 
 71.31  of the state may not receive the daily payment, but they may 
 71.32  suffer no loss in compensation or benefits from the state or a 
 71.33  political subdivision as a result of their service on the board. 
 71.34  Commissioners who are elected officials may receive the daily 
 71.35  payment for a particular day only if they do not receive any 
 71.36  other daily payment for public service on that day.  
 72.1   Commissioners who are full-time state employees or full-time 
 72.2   employees of the political subdivisions of the state may receive 
 72.3   the expenses provided for in this subdivision unless the 
 72.4   expenses are reimbursed by another source. 
 72.5      Sec. 15.  Minnesota Statutes 1998, section 469.174, 
 72.6   subdivision 10, is amended to read: 
 72.7      Subd. 10.  [REDEVELOPMENT DISTRICT.] (a) "Redevelopment 
 72.8   district" means a type of tax increment financing district 
 72.9   consisting of a project, or portions of a project, within which 
 72.10  the authority finds by resolution that one of the following 
 72.11  conditions, reasonably distributed throughout the district, 
 72.12  exists: 
 72.13     (1) parcels consisting of 70 percent of the area of the 
 72.14  district are occupied by buildings, streets, utilities, or other 
 72.15  improvements and more than 50 percent of the buildings, not 
 72.16  including outbuildings, are structurally substandard to a degree 
 72.17  requiring substantial renovation or clearance; or 
 72.18     (2) the property consists of vacant, unused, underused, 
 72.19  inappropriately used, or infrequently used railyards, rail 
 72.20  storage facilities, or excessive or vacated railroad 
 72.21  rights-of-way, or tank facilities, as defined in section 
 72.22  115C.02, subdivision 15, with a capacity in excess of 1,000,000 
 72.23  gallons, located adjacent to rail facilities. 
 72.24     (b) For purposes of this subdivision, "structurally 
 72.25  substandard" shall mean containing defects in structural 
 72.26  elements or a combination of deficiencies in essential utilities 
 72.27  and facilities, light and ventilation, fire protection including 
 72.28  adequate egress, layout and condition of interior partitions, or 
 72.29  similar factors, which defects or deficiencies are of sufficient 
 72.30  total significance to justify substantial renovation or 
 72.31  clearance.  
 72.32     (c) A building is not structurally substandard if it is in 
 72.33  compliance with the building code applicable to new buildings or 
 72.34  could be modified to satisfy the building code at a cost of less 
 72.35  than 15 percent of the cost of constructing a new structure of 
 72.36  the same square footage and type on the site.  The municipality 
 73.1   may find that a building is not disqualified as structurally 
 73.2   substandard under the preceding sentence on the basis of 
 73.3   reasonably available evidence, such as the size, type, and age 
 73.4   of the building, the average cost of plumbing, electrical, or 
 73.5   structural repairs, or other similar reliable evidence.  The 
 73.6   municipality may not make such a determination without an 
 73.7   interior inspection of the property, but need not have an 
 73.8   independent, expert appraisal prepared of the cost of repair and 
 73.9   rehabilitation of the building.  An interior inspection of the 
 73.10  property is not required, if the municipality finds that (1) the 
 73.11  municipality or authority is unable to gain access to the 
 73.12  property after using its best efforts to obtain permission from 
 73.13  the party that owns or controls the property; and (2) the 
 73.14  evidence otherwise supports a reasonable conclusion that the 
 73.15  building is structurally substandard.  Items of evidence that 
 73.16  support such a conclusion include recent fire or police 
 73.17  inspections, on-site property tax appraisals or housing 
 73.18  inspections, exterior evidence of deterioration, or other 
 73.19  similar reliable evidence.  Written documentation of the 
 73.20  findings and reasons why an interior inspection was not 
 73.21  conducted must be made and retained under section 469.175, 
 73.22  subdivision 3, clause (1). 
 73.23     (d) A parcel is deemed to be occupied by a structurally 
 73.24  substandard building for purposes of the finding under paragraph 
 73.25  (a) if all of the following conditions are met: 
 73.26     (1) the parcel was occupied by a substandard building 
 73.27  within three years of the filing of the request for 
 73.28  certification of the parcel as part of the district with the 
 73.29  county auditor; 
 73.30     (2) the substandard building was demolished or removed by 
 73.31  the authority or the demolition or removal was financed by the 
 73.32  authority or was done by a developer under a development 
 73.33  agreement with the authority; 
 73.34     (3) the authority found by resolution before the demolition 
 73.35  or removal that the parcel was occupied by a structurally 
 73.36  substandard building and that after demolition and clearance the 
 74.1   authority intended to include the parcel within a district; and 
 74.2      (4) upon filing the request for certification of the tax 
 74.3   capacity of the parcel as part of a district, the authority 
 74.4   notifies the county auditor that the original tax capacity of 
 74.5   the parcel must be adjusted as provided by section 469.177, 
 74.6   subdivision 1, paragraph (h). 
 74.7      (e) For purposes of this subdivision, a parcel is not 
 74.8   occupied by buildings, streets, utilities, or other improvements 
 74.9   unless 15 percent of the area of the parcel contains 
 74.10  improvements. 
 74.11     (f) For districts consisting of two or more noncontiguous 
 74.12  areas, each area must qualify as a redevelopment district under 
 74.13  paragraph (a) to be included in the district, and the entire 
 74.14  area of the district must satisfy paragraph (a). 
 74.15     EFFECTIVE DATE:  This section is effective for districts or 
 74.16  additions to the geographic area of a district for which request 
 74.17  for certification is made after June 30, 2000. 
 74.18     Sec. 16.  Minnesota Statutes 1998, section 469.175, 
 74.19  subdivision 5, is amended to read: 
 74.20     Subd. 5.  [ANNUAL DISCLOSURE.] (a) The authority shall 
 74.21  annually submit to the county board, the county auditor, the 
 74.22  school board, state auditor and, if the authority is other than 
 74.23  the municipality, the governing body of the municipality, a 
 74.24  report of the status of the district.  The report shall include 
 74.25  the following information:  the amount and the source of revenue 
 74.26  in the account, the amount and purpose of expenditures from the 
 74.27  account, the amount of any pledge of revenues, including 
 74.28  principal and interest on any outstanding bonded indebtedness, 
 74.29  the original net tax capacity of the district and any 
 74.30  subdistrict, the captured net tax capacity retained by the 
 74.31  authority, the captured net tax capacity shared with other 
 74.32  taxing districts, the tax increment received, and any additional 
 74.33  information necessary to demonstrate compliance with any 
 74.34  applicable tax increment financing plan.  The authority must 
 74.35  submit the annual report for a year on or before August 1 of the 
 74.36  next year. 
 75.1      (b) An annual statement showing the tax increment received 
 75.2   and expended in that year, the original net tax capacity, 
 75.3   captured net tax capacity, amount of outstanding bonded 
 75.4   indebtedness, the amount of the district's and any subdistrict's 
 75.5   increments paid to other governmental bodies, the amount paid 
 75.6   for administrative costs, the sum of increments paid, directly 
 75.7   or indirectly, for activities and improvements located outside 
 75.8   of the district, for each district the information required to 
 75.9   be reported under subdivision 6, paragraph (c), clauses (1), 
 75.10  (2), (3), (11), (12), (20), and (21); the amounts of tax 
 75.11  increment received and expended in the reporting period; and any 
 75.12  additional information the authority deems necessary shall must 
 75.13  be published in a newspaper of general circulation in the 
 75.14  municipality that approved the tax increment financing plan.  If 
 75.15  the fiscal disparities contribution under chapter 276A or 473F 
 75.16  for the district is computed under section 469.177, subdivision 
 75.17  3, paragraph (a), the annual statement must disclose that fact 
 75.18  and indicate the amount of increased property tax imposed on 
 75.19  other properties in the municipality as a result of the fiscal 
 75.20  disparities contribution.  The commissioner of revenue shall 
 75.21  prescribe the form of this statement and the method for 
 75.22  calculating the increased property taxes.  The annual statement 
 75.23  must inform readers that additional information regarding each 
 75.24  district may be obtained from the authority, and must explain 
 75.25  how the additional information may be requested.  The authority 
 75.26  must publish the annual statement for a year no later than 
 75.27  August 15 of the next year.  The authority must identify the 
 75.28  newspaper of general circulation in the municipality to which 
 75.29  the annual statement has been or will be submitted for 
 75.30  publication and provide a copy of the annual statement to 
 75.31  the county board, the county auditor, the school board, the 
 75.32  state auditor, and, if the authority is other than the 
 75.33  municipality, the governing body of the municipality on or 
 75.34  before August 1 of the year in which the statement must be 
 75.35  published.  
 75.36     (c) The disclosure and reporting requirements imposed by 
 76.1   this subdivision apply to districts certified before, on, or 
 76.2   after August 1, 1979. 
 76.3      EFFECTIVE DATE:  This section is effective for reports due 
 76.4   in 2001 and subsequent years. 
 76.5      Sec. 17.  Minnesota Statutes 1998, section 469.175, 
 76.6   subdivision 6, is amended to read: 
 76.7      Subd. 6.  [ANNUAL FINANCIAL REPORTING.] (a) The state 
 76.8   auditor shall develop a uniform system of accounting and 
 76.9   financial reporting for tax increment financing districts.  The 
 76.10  system of accounting and financial reporting shall, as nearly as 
 76.11  possible: 
 76.12     (1) provide for full disclosure of the sources and uses of 
 76.13  public funds in the district; 
 76.14     (2) permit comparison and reconciliation with the affected 
 76.15  local government's accounts and financial reports; 
 76.16     (3) permit auditing of the funds expended on behalf of a 
 76.17  district, including a single district that is part of a 
 76.18  multidistrict project or that is funded in part or whole through 
 76.19  the use of a development account funded with tax increments from 
 76.20  other districts or with other public money; 
 76.21     (4) be consistent with generally accepted accounting 
 76.22  principles. 
 76.23     (b) The authority must annually submit to the state auditor 
 76.24  a financial report in compliance with paragraph (a).  Copies of 
 76.25  the report must also be provided to the county and school 
 76.26  district boards auditor and to the governing body of the 
 76.27  municipality, if the authority is not the municipality.  To the 
 76.28  extent necessary to permit compliance with the requirement of 
 76.29  financial reporting, the county and any other appropriate local 
 76.30  government unit or private entity must provide the necessary 
 76.31  records or information to the authority or the state auditor as 
 76.32  provided by the system of accounting and financial reporting 
 76.33  developed pursuant to paragraph (a).  The authority must submit 
 76.34  the annual report for a year on or before August 1 of the next 
 76.35  year. 
 76.36     (c) The annual financial report must also include the 
 77.1   following items: 
 77.2      (1) the original net tax capacity of the district and any 
 77.3   subdistrict under section 469.177, subdivision 1; 
 77.4      (2) the net tax capacity for the reporting period of the 
 77.5   district and any subdistrict; 
 77.6      (3) the captured net tax capacity of the district, 
 77.7   including the amount of any captured net tax capacity shared 
 77.8   with other taxing districts; 
 77.9      (3) (4) any fiscal disparity deduction from the captured 
 77.10  net tax capacity under section 469.177, subdivision 3; 
 77.11     (5) the captured net tax capacity retained for tax 
 77.12  increment financing under section 469.177, subdivision 2, 
 77.13  paragraph (a), clause (1); 
 77.14     (6) any captured net tax capacity distributed among 
 77.15  affected taxing districts under section 469.177, subdivision 2, 
 77.16  paragraph (a), clause (2); 
 77.17     (7) the type of district; 
 77.18     (8) the date the municipality approved the tax increment 
 77.19  financing plan and the date of approval of any modification of 
 77.20  the tax increment financing plan, the approval of which requires 
 77.21  notice, discussion, a public hearing, and findings under 
 77.22  subdivision 4, paragraph (a); 
 77.23     (9) the date the authority first requested certification of 
 77.24  the original net tax capacity of the district and the date of 
 77.25  the request for certification regarding any parcel added to the 
 77.26  district; 
 77.27     (10) the date the county auditor first certified the 
 77.28  original net tax capacity of the district and the date of 
 77.29  certification of the original net tax capacity of any parcel 
 77.30  added to the district; 
 77.31     (11) the month and year in which the authority has received 
 77.32  or anticipates it will receive the first increment from the 
 77.33  district; 
 77.34     (12) the date the district must be decertified; 
 77.35     (13) for the reporting period and prior years of the 
 77.36  district, the actual amount received from, at least, the 
 78.1   following categories: 
 78.2      (i) tax increments paid by the captured net tax capacity 
 78.3   retained for tax increment financing under section 469.177, 
 78.4   subdivision 2, paragraph (a), clause (1), but excluding any 
 78.5   excess taxes; 
 78.6      (ii) tax increments that are interest or other investment 
 78.7   earnings on or from tax increments; 
 78.8      (iii) tax increments that are proceeds from the sale or 
 78.9   lease of property, tangible or intangible, purchased by the 
 78.10  authority with tax increments; 
 78.11     (iv) tax increments that are repayments of loans or other 
 78.12  advances made by the authority with tax increments; 
 78.13     (v) bond or loan proceeds; 
 78.14     (vi) special assessments; 
 78.15     (vii) grants; and 
 78.16     (viii) transfers from funds not exclusively associated with 
 78.17  the district; 
 78.18     (14) for the reporting period and for the duration prior 
 78.19  years of the district, the amount budgeted under the tax 
 78.20  increment financing plan, and the actual amount expended for, at 
 78.21  least, the following categories: 
 78.22     (i) acquisition of land and buildings through condemnation 
 78.23  or purchase; 
 78.24     (ii)  site improvements or preparation costs; 
 78.25     (iii) installation of public utilities, parking facilities, 
 78.26  streets, roads, sidewalks, or other similar public improvements; 
 78.27     (iv) administrative costs, including the allocated cost of 
 78.28  the authority; 
 78.29     (v) public park facilities, facilities for social, 
 78.30  recreational, or conference purposes, or other similar public 
 78.31  improvements; and 
 78.32     (vi) transfers to funds not exclusively associated with the 
 78.33  district; 
 78.34     (4) (15) for properties sold to developers, the total cost 
 78.35  of the property to the authority and the price paid by the 
 78.36  developer; and 
 79.1      (5) the amount of increments rebated or paid to developers 
 79.2   or property owners for privately financed improvements or other 
 79.3   qualifying costs. 
 79.4      (16) the amount of any payments and the value of any 
 79.5   in-kind benefits, such as physical improvements and the use of 
 79.6   building space, that are paid or financed with tax increments 
 79.7   and are provided to another governmental unit other than the 
 79.8   municipality during the reporting period; 
 79.9      (17) the amount of any payments for activities and 
 79.10  improvements located outside of the district that are paid for 
 79.11  or financed with tax increments; 
 79.12     (18) the amount of payments of principal and interest that 
 79.13  are made during the reporting period on any nondefeased: 
 79.14     (i) general obligation tax increment financing bonds; 
 79.15     (ii) other tax increment financing bonds; and 
 79.16     (iii) notes and pay-as-you-go contracts; 
 79.17     (19) the principal amount, at the end of the reporting 
 79.18  period, of any nondefeased: 
 79.19     (i) general obligation tax increment financing bonds; 
 79.20     (ii) other tax increment financing bonds; and 
 79.21     (iii) notes and pay-as-you-go contracts; 
 79.22     (20) the amount of principal and interest payments that are 
 79.23  due for the current calendar year on any nondefeased: 
 79.24     (i) general obligation tax increment financing bonds; 
 79.25     (ii) other tax increment financing bonds; and 
 79.26     (iii) notes and pay-as-you-go contracts; 
 79.27     (21) if the fiscal disparities contribution under chapter 
 79.28  276A or 473F for the district is computed under section 469.177, 
 79.29  subdivision 3, paragraph (a), the amount of increased property 
 79.30  taxes imposed on other properties in the municipality that 
 79.31  approved the tax increment financing plan as a result of the 
 79.32  fiscal disparities contribution; 
 79.33     (22) whether the tax increment financing plan or other 
 79.34  governing document permits increment revenues to be expended: 
 79.35     (i) to pay bonds, the proceeds of which were or may be 
 79.36  expended on activities outside of the district; 
 80.1      (ii) for deposit into a common bond fund from which money 
 80.2   may be expended on activities located outside of the district; 
 80.3   or 
 80.4      (iii) to otherwise finance activities located outside of 
 80.5   the tax increment financing district; and 
 80.6      (23) any additional information the state auditor may 
 80.7   require. 
 80.8      (d) The commissioner of revenue shall prescribe the method 
 80.9   of calculating the increased property taxes under paragraph (c), 
 80.10  clause (21), and the form of the statement disclosing this 
 80.11  information on the annual statement under subdivision 5. 
 80.12     (e) The reporting requirements imposed by this subdivision 
 80.13  apply to districts certified before, on, and after August 1, 
 80.14  1979. 
 80.15     EFFECTIVE DATE:  This section is effective for reports due 
 80.16  in 2001 and subsequent years. 
 80.17     Sec. 18.  Minnesota Statutes 1998, section 469.176, 
 80.18  subdivision 1b, is amended to read: 
 80.19     Subd. 1b.  [DURATION LIMITS; TERMS.] (a) No tax increment 
 80.20  shall in any event be paid to the authority 
 80.21     (1) after 25 years from date of receipt by the authority of 
 80.22  the first tax increment for a mined underground space 
 80.23  development district, 
 80.24     (2) after 15 years after receipt by the authority of the 
 80.25  first increment for a renewal and renovation district, 
 80.26     (3) after 20 years after receipt by the authority of the 
 80.27  first increment for a soils condition district, 
 80.28     (4) after nine years from the date of the after receipt, or 
 80.29  11 years from approval of the tax increment financing plan, 
 80.30  whichever is less, by the authority of the first increment for 
 80.31  an economic development district for which the request for 
 80.32  certification was made after May 31, 1993; and after eight years 
 80.33  after receipt by the authority of the first increment for an 
 80.34  economic development district for which the request for 
 80.35  certification was made before June 1, 1993, 
 80.36     (5) for a housing district or a redevelopment district, 
 81.1   after 20 years from the date of receipt by the authority of the 
 81.2   first tax increment by the authority pursuant to section 
 81.3   469.175, subdivision 1, paragraph (b); or, if no provision is 
 81.4   made under section 469.175, subdivision 1, paragraph (b), after 
 81.5   25 years from the date of receipt by the authority of the first 
 81.6   increment. 
 81.7      (b) For purposes of determining a duration limit under this 
 81.8   subdivision or subdivision 1e that is based on the receipt of an 
 81.9   increment, any increments from taxes payable in the year in 
 81.10  which the district terminates shall be paid to the authority.  
 81.11  This paragraph does not affect a duration limit calculated from 
 81.12  the date of approval of the tax increment financing plan or 
 81.13  based on the recovery of costs or to a duration limit under 
 81.14  subdivision 1c.  This paragraph does not supersede the 
 81.15  restrictions on payment of delinquent taxes in subdivision 1f. 
 81.16     EFFECTIVE DATE:  This section is effective on May 1, 2000, 
 81.17  and applies to any economic development district that: 
 81.18     (1) is requested for certification after May 1, 2000; 
 81.19     (2) was requested for certification after July 31, 1979, 
 81.20  and as of May 1, 2000, has not reached its maximum duration 
 81.21  under the law in effect on the date the district was requested 
 81.22  for certification; or 
 81.23     (3) was requested for certification after July 31, 1979, 
 81.24  and the authority received tax increment from the county after 
 81.25  the duration limit calculated from the date of approval of the 
 81.26  plan, but within the duration limit if this section had been in 
 81.27  effect on the date the district was requested for certification. 
 81.28     Sec. 19.  Minnesota Statutes 1998, section 469.1763, is 
 81.29  amended by adding a subdivision to read: 
 81.30     Subd. 6.  [HOUSING DEVELOPMENTS.] (a) The restrictions in 
 81.31  subdivisions 2 through 4 do not apply to increments spent 
 81.32  exclusively to assist a housing development. 
 81.33     (b) For purposes of this subdivision, the following terms 
 81.34  have the meanings given. 
 81.35     (1) "Housing development" or "development" means housing 
 81.36  that meets the requirements for a qualified low-income building 
 82.1   as that term is used in section 42 of the Internal Revenue Code. 
 82.2      (2) "To assist" means amounts spent to: 
 82.3      (i) acquire and prepare the site; 
 82.4      (ii) acquire, construct, or rehabilitate buildings or other 
 82.5   improvements; and 
 82.6      (iii) make public improvements directly related to the 
 82.7   development. 
 82.8      (c) For a development, the amount of the tax increments 
 82.9   that qualifies under this subdivision is limited to the 
 82.10  qualified basis for the development, as defined under section 
 82.11  42(c) of the Internal Revenue Code, less the amount of any tax 
 82.12  credit the development is allowed under section 42 of the 
 82.13  Internal Revenue Code. 
 82.14     EFFECTIVE DATE:  This section applies to increments spent 
 82.15  after July 1, 2000. 
 82.16     Sec. 20.  [FINDINGS.] 
 82.17     The legislature finds that: 
 82.18     (1) the legislature has directed the metropolitan airports 
 82.19  commission to develop a plan to mitigate aircraft noise 
 82.20  associated with the operation of the Minneapolis/St. Paul 
 82.21  International Airport; 
 82.22     (2) the metropolitan airports commission has developed a 
 82.23  noise mitigation plan in conjunction with communities adjacent 
 82.24  to the airport and is in the process of updating its FAR Part 
 82.25  150 noise mitigation program for submission to and approval by 
 82.26  the Federal Aviation Administration; 
 82.27     (3) the legislature also established the governor's airport 
 82.28  community stabilization funding task force that recommended 
 82.29  further mitigation funding to address federal, state, and local 
 82.30  participation in mitigation of noise and other impacts 
 82.31  associated with expansion of the Minneapolis/St. Paul 
 82.32  International Airport at its present location; 
 82.33     (4) the task force concluded that: 
 82.34     (i) the metropolitan airports commission has committed 
 82.35  significant resources toward mitigating the negative impacts 
 82.36  associated with airport expansion, but the FAR Part 150 noise 
 83.1   program is insufficient to address all impacts; 
 83.2      (ii) the metropolitan airports commission is neither 
 83.3   capable of, nor should it be required to, finance mitigation of 
 83.4   all airport impacts; 
 83.5      (iii) the decision to keep and expand the airport at its 
 83.6   current location was a state decision, and as such, the state 
 83.7   should be a financial partner in mitigation projects resulting 
 83.8   from the expansion of the airport; and 
 83.9      (iv) no single funding source is adequate for the range and 
 83.10  scope of proposed mitigation activities; and 
 83.11     (5) appropriate measures to mitigate adverse impacts 
 83.12  include, but are not limited to, insulation, redevelopment and 
 83.13  housing replacement activities, and property value assurance and 
 83.14  expenditures for all such measures are for a public purpose. 
 83.15     Sec. 21.  [DEFINITIONS.] 
 83.16     Subdivision 1.  [APPLICATION.] For the purposes of sections 
 83.17  20 to 24, the terms defined in this section have the meanings 
 83.18  given them. 
 83.19     Subd. 2.  [AIRPORT IMPACT DISTRICT.] "Airport impact 
 83.20  district" means an airport impact tax increment financing 
 83.21  district described in section 23. 
 83.22     Subd. 3.  [AIRPORT IMPACT ZONE.] "Airport impact zone" 
 83.23  means a contiguous or noncontiguous geographic area designated 
 83.24  by a city and approved by the council as part of a mitigation 
 83.25  plan under section 22. 
 83.26     Subd. 4.  [CITY.] "City" means the cities of Bloomington, 
 83.27  Burnsville, Eagan, Mendota Heights, Minneapolis, Richfield, and 
 83.28  St. Paul or any of them. 
 83.29     Subd. 5.  [COUNCIL.] "Council" means the metropolitan 
 83.30  council.  
 83.31     Subd. 6.  [GOVERNING BODY.] "Governing body" means the city 
 83.32  council of a city. 
 83.33     Subd. 7.  [HOUSING REPLACEMENT ACTIVITIES.] "Housing 
 83.34  replacement activities" means rehabilitation, acquisition, 
 83.35  demolition relocation assistance, relocation of existing 
 83.36  dwelling units, and construction of new dwelling units, for the 
 84.1   purpose of replacing dwelling units eliminated by airport 
 84.2   mitigation activities. 
 84.3      Subd. 8.  [IMPACT REPORT.] "Impact report" means a written 
 84.4   report identifying airport impacts adopted by a city under 
 84.5   section 22. 
 84.6      Subd. 9.  [MITIGATION PLAN.] "Mitigation plan" means a plan 
 84.7   for airport impact mitigation developed by a city and approved 
 84.8   by the council under section 22. 
 84.9      Subd. 10.  [OBLIGATION.] "Obligation" has the meaning given 
 84.10  it in Minnesota Statutes, section 475.51, subdivision 3.  The 
 84.11  term includes obligations issued to refund prior obligations 
 84.12  issued under sections 20 to 24. 
 84.13     Subd. 11.  [SCHOOL DISTRICT.] "School district" means a 
 84.14  school district whose jurisdiction includes all or any portion 
 84.15  of a city. 
 84.16     Sec. 22.  [AIRPORT IMPACT MITIGATION PLANNING.] 
 84.17     Subdivision 1.  [IMPACT REPORT.] A city may study and 
 84.18  identify airport impacts and the scope of those impacts on the 
 84.19  city.  At the conclusion of an impact study, a city must adopt a 
 84.20  report of the impacts on the city.  In studying airport impacts 
 84.21  and preparing a report, a city must take into account airport 
 84.22  noise impacts and additional environmental, transportation, and 
 84.23  economic impacts associated with expansion of the 
 84.24  Minneapolis/St. Paul International Airport.  A city must also 
 84.25  consider and incorporate the overhead noise guidelines 
 84.26  established by the Federal Aviation Administration and 
 84.27  recommendations of the low frequency noise policy committee 
 84.28  concerning noise impacts. 
 84.29     Subd. 2.  [MITIGATION PLAN.] (a) After adopting an airport 
 84.30  impact report, a city must develop an airport mitigation plan 
 84.31  for an airport impact zone in the city.  In developing the 
 84.32  mitigation plan, a city must seek to determine the most 
 84.33  effective measures for mitigating the impacts identified in the 
 84.34  impact report.  A city may consider any measures for mitigating 
 84.35  airport impacts, including, but not limited to, noise insulation 
 84.36  of residential and commercial buildings, land use conversion, 
 85.1   development of housing to replace units lost through mitigation 
 85.2   activities, and property value assurance programs.  The 
 85.3   mitigation plan must include: 
 85.4      (1) designated boundaries of the airport impact zone; 
 85.5      (2) a description of recommended impact mitigation 
 85.6   measures; 
 85.7      (3) if the plan includes establishment of one or more 
 85.8   airport impact tax increment financing districts, the proposed 
 85.9   boundaries of each district consistent with the terms of section 
 85.10  23; 
 85.11     (4) if the plan includes conversion of residential land 
 85.12  use, a description of proposed housing replacement activities; 
 85.13     (5) estimates of costs of the recommended mitigation 
 85.14  measures and possible financing sources; 
 85.15     (6) an analysis of the feasibility of property tax 
 85.16  abatement under Minnesota Statutes, sections 469.1813 to 
 85.17  469.1815, as a financing source; and 
 85.18     (7) the estimated amount of obligations, if any, to be 
 85.19  issued under section 24, including a description of the proposed 
 85.20  security for the obligations and whether the city requests 
 85.21  credit enhancement by the council as provided in section 24, 
 85.22  subdivision 2. 
 85.23     (b) Before initial approval of a mitigation plan, a city 
 85.24  must conduct a public hearing after publishing at least ten days 
 85.25  before the hearing a notice in a newspaper of general 
 85.26  circulation in the city.  The hearing notice must state that the 
 85.27  mitigation plan and the mitigation report are available for 
 85.28  review in the administrative offices of the city.  After initial 
 85.29  approval of the mitigation plan by the governing body, the city 
 85.30  must submit the mitigation plan and the mitigation report to the 
 85.31  council for approval, and must also submit copies to the 
 85.32  metropolitan airports commission for review and comment.  No 
 85.33  more than 60 days after receipt of the city's submission, the 
 85.34  council must approve, disapprove, or otherwise comment on the 
 85.35  mitigation plan.  Failure by the council to approve or comment 
 85.36  within 60 days is considered approval of the mitigation plan.  
 86.1   An action described in a mitigation plan must not be financed by 
 86.2   the mitigation fund or an airport impact district until the 
 86.3   mitigation plan has been approved by the council and then 
 86.4   approved by the governing body. 
 86.5      (c) Before approving any mitigation plan, the council must 
 86.6   establish criteria for evaluating proposed airport impact zones, 
 86.7   airport impact districts, and mitigation measures.  The council 
 86.8   must consult with the cities and the metropolitan airports 
 86.9   commission in developing the criteria.  The council must approve 
 86.10  final criteria by December 31, 2000.  Any mitigation plan 
 86.11  approved under sections 20 to 24 must be consistent with the 
 86.12  criteria established under this paragraph. 
 86.13     (d) A mitigation plan may be changed for the following 
 86.14  purposes after the notice, hearing, and approvals required for 
 86.15  approval of the original plan to: 
 86.16     (1) increase the total estimated cost of mitigation 
 86.17  activities; 
 86.18     (2) increase the total estimated amount of obligations to 
 86.19  be issued; 
 86.20     (3) secure any obligations by the pledge described in 
 86.21  section 24, subdivision 2, if the pledge was not included in the 
 86.22  original plan; 
 86.23     (4) expand the boundaries of an airport impact zone; 
 86.24     (5) create or expand the boundaries of an airport impact 
 86.25  district; or 
 86.26     (6) add mitigation activities beyond the scope of 
 86.27  activities described in the original plan. 
 86.28     (e) Expenditures to implement a mitigation plan are not 
 86.29  considered a business subsidy under Minnesota Statutes, sections 
 86.30  116J.993 to 116J.995. 
 86.31     Sec. 23.  [AIRPORT IMPACT TAX INCREMENT FINANCING 
 86.32  DISTRICTS.] 
 86.33     Subdivision 1.  [AUTHORIZATION.] A city may establish one 
 86.34  or more airport impact tax increment financing districts within 
 86.35  an airport impact zone.  At least 75 percent of the area of an 
 86.36  airport impact district must be located within the 60 DNL 
 87.1   contour surrounding the Minneapolis/St. Paul International 
 87.2   Airport.  The boundaries of each district must be described in a 
 87.3   mitigation plan. 
 87.4      Subd. 2.  [SPECIAL RULES.] (a) An airport impact district 
 87.5   is considered a redevelopment district within the meaning of, 
 87.6   and is subject to, Minnesota Statutes, sections 469.174 to 
 87.7   469.179, except as otherwise provided in this subdivision.  For 
 87.8   the purposes of Minnesota Statutes, section 469.174, subdivision 
 87.9   8, "project" means an airport impact zone described in section 
 87.10  22. 
 87.11     (b) For the purposes of Minnesota Statutes, section 
 87.12  469.174, subdivision 10, the governing body must find that 
 87.13  parcels consisting of 70 percent of the area of the district are 
 87.14  occupied by buildings, streets, utilities, or other 
 87.15  improvements, and more than 50 percent of the buildings, not 
 87.16  including outbuildings, currently or upon completion of airport 
 87.17  expansion are reasonably expected to experience airport impacts 
 87.18  identified in the mitigation plan to a degree requiring land use 
 87.19  conversion to accommodate uses compatible with the airport.  
 87.20  This finding may be made at the time of approval of the 
 87.21  mitigation plan. 
 87.22     (c) For the purposes of Minnesota Statutes, section 
 87.23  469.1763, subdivision 2, the in-district percentage is 75 
 87.24  percent, except that any expenditures within the boundaries of 
 87.25  any other airport impact tax increment financing district in the 
 87.26  city are considered activities within the district whenever made 
 87.27  notwithstanding anything to the contrary in Minnesota Statutes, 
 87.28  section 469.1763, subdivision 3, and the 25 percent pooling 
 87.29  percentage may be used only to pay for administrative expenses 
 87.30  and housing replacement activities. 
 87.31     (d) For the purposes of Minnesota Statutes, section 
 87.32  469.176, subdivision 4j, the cost of correcting conditions that 
 87.33  allow designation of the airport impact district includes the 
 87.34  cost of a mitigation measure described in an approved mitigation 
 87.35  plan. 
 87.36     (e) Minnesota Statutes, sections 273.1399 and 469.1782, 
 88.1   subdivision 1, do not apply to the district if the city elects 
 88.2   either or both of the following: 
 88.3      (1) the exemption under Minnesota Statutes, section 
 88.4   273.1399, subdivision 6, paragraph (d); or 
 88.5      (2) at least 15 percent of the revenue generated from tax 
 88.6   increments from the airport impact district in any year is 
 88.7   deposited in the housing replacement account of the city and 
 88.8   spent for housing replacement activities described in the 
 88.9   mitigation plan. 
 88.10     (f) Housing replacement activities may be located in the 
 88.11  city within or outside the airport impact district. 
 88.12     (g) Minnesota Statutes, chapter 473F, does not apply to 
 88.13  property within an airport impact district beginning in the 
 88.14  first year in which tax increment is paid to the city and 
 88.15  continuing until decertification of the district.  Tax increment 
 88.16  from the district is calculated according to Minnesota Statutes, 
 88.17  section 469.177, subdivision 3, paragraph (a), without regard to 
 88.18  the fiscal disparities provisions of Minnesota Statutes, chapter 
 88.19  473F. 
 88.20     Sec. 24.  [BONDS; SECURITY.] 
 88.21     Subdivision 1.  [TERMS.] (a) A city may issue obligations 
 88.22  secured by: 
 88.23     (1) tax increments; 
 88.24     (2) abatements; 
 88.25     (3) any other revenues available to the city under law; or 
 88.26     (4) any combination of revenue described in clauses (1) to 
 88.27  (3). 
 88.28     (b) The proceeds of obligations must be used to pay or 
 88.29  reimburse any costs to implement a mitigation plan, including, 
 88.30  without limitation, costs of preparing the impact report and the 
 88.31  mitigation plan.  The governing body may provide by resolution 
 88.32  that the obligations are additionally secured by the full faith 
 88.33  and credit of the city.  Notwithstanding any other law or 
 88.34  charter provision, voter approval is not required and net debt 
 88.35  limits do not apply to obligations issued under this section.  
 88.36  Obligations secured in whole or in part with tax increments from 
 89.1   an airport impact district must be issued according to sections 
 89.2   20 to 24 and Minnesota Statutes, section 469.178. 
 89.3      Subd. 2.  [METROPOLITAN AREA CREDIT ENHANCEMENT 
 89.4   PROGRAM.] (a) The council may establish an airport impact 
 89.5   mitigation bond credit enhancement program as provided in this 
 89.6   section.  The council may pledge its full faith and credit and 
 89.7   taxing powers to obligations issued under sections 20 to 24 if: 
 89.8      (1) the city so requests and the council approves that 
 89.9   pledge as part of the city's mitigation plan; and 
 89.10     (2) the council finds that revenues pledged for payment of 
 89.11  the obligations will produce, as estimated at the time of the 
 89.12  pledge, at least 125 percent of the principal and interest due 
 89.13  on the obligations. 
 89.14     (b) The pledge must be made by resolution of the council.  
 89.15  Voter approval of obligations secured by the pledge described in 
 89.16  this subdivision is not required and net debt limits do not 
 89.17  apply. 
 89.18     (c) Before pledging its full faith and credit, the council 
 89.19  must, in consultation with the cities and the metropolitan 
 89.20  airports commission, establish criteria for approving requests 
 89.21  for credit enhancement under this section.  The criteria may 
 89.22  contain limits on the total amount of obligations that may be 
 89.23  credit enhanced under this subdivision. 
 89.24     (d) If there is a deficiency in revenues pledged to 
 89.25  obligations credit enhanced under this subdivision, the council 
 89.26  must levy a tax against all taxable property in the metropolitan 
 89.27  area and advance the proceeds of the levy to the city for 
 89.28  deposit in the debt service fund for the obligations.  The city 
 89.29  must reimburse the council for the advance to the extent the 
 89.30  deficient revenues are later collected. 
 89.31     (e) Taxes levied by the council because of credit 
 89.32  enhancement under this subdivision do not affect the amount or 
 89.33  rate of taxes that may be levied by the council for other 
 89.34  purposes and are not subject to limit as to rate or amount. 
 89.35     (f) The council and each city that participates in the 
 89.36  credit enhancement program may enter into agreements they 
 90.1   determine to be necessary to implement the credit enhancement 
 90.2   program.  The agreements may extend over any period, 
 90.3   notwithstanding any law to the contrary. 
 90.4      EFFECTIVE DATE:  Sections 20, 21, 22, and 24 do not require 
 90.5   local approval because Minnesota Statutes, section 645.023, 
 90.6   subdivision 1, paragraph (a), applies.  Sections 20, 21, 22, and 
 90.7   24 are effective June 1, 2000.  Section 23 is effective for each 
 90.8   of the cities of Bloomington, Burnsville, Eagan, Mendota 
 90.9   Heights, Minneapolis, Richfield, and St. Paul the day after the 
 90.10  governing body of each city and its chief clerical officer, 
 90.11  together with the governing body of each affected county and 
 90.12  school district and its chief clerical officer, timely complete 
 90.13  their compliance with Minnesota Statutes, sections 469.1782, 
 90.14  subdivision 2, and 645.021, subdivisions 2 and 3. 
 90.15     Sec. 25.  [BROOKLYN PARK EDA; TIF DISTRICT NO. 18.] 
 90.16     The 1998 amendments to Minnesota Statutes, section 469.176, 
 90.17  subdivision 7, as set forth in Laws 1998, chapter 389, article 
 90.18  11, section 6, apply to the Brooklyn Park economic development 
 90.19  authority's tax increment financing district No. 18, 
 90.20  notwithstanding the effective date of the amendments. 
 90.21     EFFECTIVE DATE:  This section is effective the day after 
 90.22  the governing body of the city of Brooklyn Park and its chief 
 90.23  clerical officer timely complete their compliance with Minnesota 
 90.24  Statutes, section 645.021, subdivisions 2 and 3. 
 90.25     Sec. 26.  [CITY OF FOUNTAIN; TIF DURATION EXTENSION.] 
 90.26     The governing body of the city of Fountain may extend the 
 90.27  duration of tax increment financing district 1-1 through 
 90.28  December 31, 2008, notwithstanding the provision of Minnesota 
 90.29  Statutes, section 469.176, subdivision 1b.  The extension under 
 90.30  this section is intended to correct an error in calculation of 
 90.31  the increment after a division of a parcel in the tax increment 
 90.32  financing district.  As a result, the provisions of Minnesota 
 90.33  Statutes, section 469.1782, subdivision 1, do not apply to the 
 90.34  district. 
 90.35     EFFECTIVE DATE:  This section is effective the day after 
 90.36  the governing bodies of the city, county, and school district, 
 91.1   and their chief clerical officers, timely complete their 
 91.2   compliance with Minnesota Statutes, sections 469.1782, 
 91.3   subdivision 2, and 645.021, subdivisions 2 and 3. 
 91.4      Sec. 27.  [MENDOTA HEIGHTS TAX INCREMENT FINANCING 
 91.5   DISTRICT; CONTINUATION.] 
 91.6      Notwithstanding the provisions of Minnesota Statutes, 
 91.7   section 469.1764, or any other law, tax increment financing 
 91.8   district No. 1 established by the city of Mendota Heights in 
 91.9   1981 shall continue in effect for its original authorized 
 91.10  duration, subject to the condition that, except for expenditures 
 91.11  to pay preexisting obligations described in Minnesota Statutes, 
 91.12  section 469.1764, subdivision 5, paragraphs (b) and (c), all 
 91.13  future expenditures of tax increment shall not exceed $4,500,000 
 91.14  and shall be limited to the city's freeway road project 
 91.15  substantially as described in the city's application for a grant 
 91.16  from the livable communities demonstration account of the 
 91.17  metropolitan livable communities fund. 
 91.18     EFFECTIVE DATE:  This section is effective the day after 
 91.19  approval by the governing body of the city of Mendota Heights 
 91.20  and compliance with Minnesota Statutes, section 645.021, 
 91.21  subdivision 3. 
 91.22     Sec. 28.  [REDEVELOPMENT DISTRICT FOR MINNEAPOLIS CENTRAL 
 91.23  LIBRARY.] 
 91.24     Subdivision 1.  [AUTHORIZATION.] Upon approval of the 
 91.25  governing body of the city of Minneapolis by resolution, the 
 91.26  Minneapolis community development agency may establish a 
 91.27  redevelopment tax increment financing district to finance the 
 91.28  construction of the Minneapolis central library.  The governing 
 91.29  body may approve establishment of the district only if it makes 
 91.30  a finding that at least 60 percent of the cost of the project 
 91.31  will be paid for from sources of financing other than tax 
 91.32  increments.  The district is a redevelopment district subject to 
 91.33  Minnesota Statutes, sections 469.174 to 469.179, except as 
 91.34  provided in this section. 
 91.35     Subd. 2.  [DISTRICT AREA.] If approved, the boundaries of 
 91.36  the district are as follows: 
 92.1      Starting at the point of intersection of the southeasterly 
 92.2      line of Marquette Avenue and the southwesterly line of 
 92.3      Fifth Street South, thence northwesterly along the 
 92.4      southwesterly line of Fifth Street South to its 
 92.5      intersection with the northwesterly line of Nicollet Mall, 
 92.6      thence northeasterly along the northwesterly line of 
 92.7      Nicollet Mall to its intersection with the southwesterly 
 92.8      line of Fourth Street South, thence northwesterly along the 
 92.9      southwesterly line of Fourth Street South to its 
 92.10     intersection with the northwesterly line of Hennepin 
 92.11     Avenue, thence northeasterly along the northwesterly line 
 92.12     of Hennepin Avenue to its intersection with the 
 92.13     northeasterly line of Washington Avenue, thence 
 92.14     southeasterly along the northeasterly line of Washington 
 92.15     Avenue to its intersection with the southeasterly line of 
 92.16     Nicollet Mall, extended, thence southwesterly along the 
 92.17     southeasterly line of Nicollet Mall to its intersection 
 92.18     with the northeasterly line of Third Street South, thence 
 92.19     southeasterly along the northeasterly line of Third Street 
 92.20     South to its intersection with the southeasterly line of 
 92.21     Marquette Avenue, thence southwesterly along the 
 92.22     southeasterly line of Marquette Avenue to the point of 
 92.23     beginning.  All in the city of Minneapolis, county of 
 92.24     Hennepin. 
 92.25     Subd. 3.  [EXCEPTIONS TO APPLICABILITY OF GENERAL LAW.] (a) 
 92.26  Notwithstanding the requirements of Minnesota Statutes, section 
 92.27  469.174, subdivision 10, the district is a redevelopment 
 92.28  district. 
 92.29     (b) Minnesota Statutes, section 469.176, subdivisions 4g 
 92.30  and 4j, do not apply to tax increment revenue generated by the 
 92.31  district. 
 92.32     (c) Minnesota Statutes, section 469.1782, subdivision 1, 
 92.33  does not apply to the district. 
 92.34     Subd. 4.  [DURATION OF DISTRICT.] Notwithstanding the 
 92.35  provisions of Minnesota Statutes, section 469.176, subdivision 
 92.36  1b, no tax increment may be paid to the authority after 30 years 
 93.1   from the date of receipt by the authority of the first increment.
 93.2      EFFECTIVE DATE:  This section is effective upon compliance 
 93.3   with Minnesota Statutes, sections 469.1782, subdivision 2, and 
 93.4   645.021, subdivision 3. 
 93.5      Sec. 29.  [MINNEAPOLIS COMMUNITY DEVELOPMENT AGENCY; 
 93.6   HOUSING DISTRICT.] 
 93.7      Subdivision 1.  [AUTHORIZATION.] Upon approval of the 
 93.8   governing body of the city of Minneapolis, the Minneapolis 
 93.9   community development agency may establish a housing tax 
 93.10  increment financing district comprised of the property 
 93.11  identified as property identification number 27-029-24-34-0025, 
 93.12  known as 215 Oak Grove Street, for the purpose of preserving 
 93.13  affordable housing that meets the requirements of Minnesota 
 93.14  Statutes, section 469.174, subdivision 11. 
 93.15     Subd. 2.  [ORIGINAL NET TAX CAPACITY.] Notwithstanding the 
 93.16  provisions of Minnesota Statutes, sections 469.174, subdivision 
 93.17  7, and 469.177, subdivision 1, the original net tax capacity of 
 93.18  the district shall be zero. 
 93.19     EFFECTIVE DATE:  This section is effective upon compliance 
 93.20  by the city of Minneapolis with the requirements of Minnesota 
 93.21  Statutes, section 645.021, subdivisions 2 and 3. 
 93.22     Sec. 30.  [ST. PAUL HOUSING AND REDEVELOPMENT AUTHORITY; 
 93.23  HOUSING DISTRICT.] 
 93.24     Subdivision 1.  [AUTHORIZATION.] The governing body of the 
 93.25  housing and redevelopment authority of the city of St. Paul may 
 93.26  create a tax increment financing housing district as provided in 
 93.27  this section for a development containing both owner-occupied 
 93.28  and residential rental units for mixed income occupancy. 
 93.29     Subd. 2.  [AREA.] The housing district authorized in this 
 93.30  section may only be created in the northeast quadrant of 
 93.31  downtown St. Paul, which is defined as the approximately 15-acre 
 93.32  area bounded by Interstate 94 on the north and east, Jackson 
 93.33  Street on the west, and Seventh Street on the south, together 
 93.34  with the west side of Jackson Street to midblock between 
 93.35  Interstate 94 and Seventh Street. 
 93.36     Subd. 3.  [INCOME REQUIREMENTS FOR COMBINED OWNER-OCCUPIED 
 94.1   AND RESIDENTIAL RENTAL DEVELOPMENT.] (a) Notwithstanding the 
 94.2   income requirements in Minnesota Statutes, section 469.174, 
 94.3   subdivision 11, or 469.1761, a housing district in the northeast 
 94.4   quadrant means a type of tax increment financing district that 
 94.5   consists of a project, or a portion of a project, intended for 
 94.6   occupancy, in part, by persons of low and moderate income as 
 94.7   defined in chapter 462A, Title II, of the National Housing Act 
 94.8   of 1934; the National Housing Act of 1959; the United States 
 94.9   Housing Act of 1937, as amended; Title V of the Housing Act of 
 94.10  1949, as amended; any other similar present or future federal, 
 94.11  state, or municipal legislation, or the regulations promulgated 
 94.12  under any of those acts, as further set forth in this section.  
 94.13  Twenty percent of the units in the development in the housing 
 94.14  district must be occupied by individuals whose family income is 
 94.15  equal to or less than 50 percent of area median gross income and 
 94.16  an additional 60 percent of the units in the development in the 
 94.17  housing district must be occupied by individuals whose family 
 94.18  income is equal to or less than 115 percent of area median gross 
 94.19  income.  Twenty percent of the units in the development in the 
 94.20  housing district shall not be subject to any income limitations. 
 94.21     (b) For purposes of this section, family income means the 
 94.22  median gross income for the area as determined under section 42 
 94.23  of the Internal Revenue Code of 1986, as amended.  The income 
 94.24  requirements of this subdivision shall be deemed to be satisfied 
 94.25  if the sum of qualified owner-occupied units and qualified 
 94.26  residential rental units equals the required total number of 
 94.27  qualified units.  Owner-occupied units must be initially 
 94.28  purchased and occupied by individuals whose family income 
 94.29  satisfies the income requirements of this subdivision.  For 
 94.30  residential rental property, the income requirements of this 
 94.31  subdivision apply for the duration of the tax increment district.
 94.32     (c) The development in the housing district, but not the 
 94.33  project, does not qualify under this subdivision if the fair 
 94.34  market value of the improvements which are constructed for 
 94.35  commercial uses or for uses other than owner-occupied and rental 
 94.36  mixed-income housing consists of more than 20 percent of the 
 95.1   total fair market value of the planned improvements in the 
 95.2   development plan or agreement.  The fair market value of the 
 95.3   improvements may be determined using the cost of construction, 
 95.4   capitalized income, or other appropriate method of estimating 
 95.5   market value. 
 95.6      EFFECTIVE DATE:  This section is effective the day after 
 95.7   the governing body of the city of St. Paul and its chief 
 95.8   clerical officer timely comply with Minnesota Statutes, section 
 95.9   645.021, subdivisions 2 and 3. 
 95.10     Sec. 31.  [WASHINGTON COUNTY HRA INCREASED TO SEVEN.] 
 95.11     Notwithstanding Minnesota Statutes, section 469.006, 
 95.12  subdivision 1, the Washington county housing and redevelopment 
 95.13  authority has seven members.  The county board must appoint one 
 95.14  member from each county commissioner district after receiving a 
 95.15  recommendation for the position from the district's county 
 95.16  commissioner.  One housing and redevelopment commissioner must 
 95.17  be appointed by the county board to represent the county at 
 95.18  large.  One authority member must be appointed by the county 
 95.19  board from among county residents who are directly assisted by 
 95.20  the public housing agency as defined in Code of Federal 
 95.21  Regulations, title 24, part 964.  The first appointee to an 
 95.22  at-large position serves for two years; thereafter the term is 
 95.23  three years.  The first appointee to the position requiring one 
 95.24  directly assisted by the public housing agency serves for one 
 95.25  year; thereafter the term is three years. 
 95.26     EFFECTIVE DATE:  This section is effective the day after 
 95.27  the governing body of Washington county and its chief clerical 
 95.28  officer timely complete their compliance with Minnesota 
 95.29  Statutes, section 645.021, subdivisions 2 and 3. 
 95.30     Sec. 32.  [WINONA TAX INCREMENT FINANCING DISTRICT; 
 95.31  RATIFICATION OF EXPENDITURE.] 
 95.32     For tax increment financing district No. 2, approved by the 
 95.33  city of Winona on August 1, 1980, the expenditure of tax 
 95.34  increments before January 1, 1998, to finance, in part, the 
 95.35  construction of improvements to the existing municipal 
 95.36  wastewater treatment plant is ratified and deemed an expenditure 
 96.1   within the geographic area of the tax increment financing 
 96.2   district, and Minnesota Statutes, section 469.1764, does not 
 96.3   apply to the tax increment financing district. 
 96.4      EFFECTIVE DATE:  This section is effective upon approval by 
 96.5   the Winona city council and compliance with Minnesota Statutes, 
 96.6   section 645.021. 
 96.7      Sec. 33.  [REPEALER.] 
 96.8      Minnesota Statutes 1998, section 469.175, subdivision 6a, 
 96.9   is repealed. 
 96.10     EFFECTIVE DATE:  This section is effective for reports due 
 96.11  in 2001 and subsequent years.