HF 2967

2nd Engrossment - 87th Legislature (2011 - 2012) Posted on 04/24/2012 05:25pm

A bill for an act
relating to state government; updating the equalizing factors and threshold rates
to reflect the changed adjusted net tax capacity tax base; updating human services
appropriations for changes reflected in the February forecast; making certain
education shift adjustments; regulating the fire safety account; establishing a
certain community outreach grant; appropriating money; amending Minnesota
Statutes 2010, sections 123B.53, subdivisions 4, 5; 123B.591, subdivision 3;
124D.20, subdivision 5; 124D.22, subdivision 3; 126C.10, subdivisions 13a,
35; 126C.41, subdivision 5; 126C.63, subdivision 8; 126C.69, subdivisions 2,
9; 297I.06, subdivision 1; 299F.012, subdivision 1, by adding a subdivision;
Minnesota Statutes 2011 Supplement, sections 16A.152, subdivision 2; 123B.54;
123B.57, subdivision 4; 127A.45, subdivision 2; 297I.06, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

EDUCATION FINANCE TECHNICAL UPDATES

Section 1.

Minnesota Statutes 2010, section 123B.53, subdivision 4, is amended to read:

Subd. 4.

Debt service equalization revenue.

(a) The debt service equalization
revenue of a district equals the sum of the first tier debt service equalization revenue and
the second tier debt service equalization revenue.

(b) The first tier debt service equalization revenue of a district equals the greater of
zero or the eligible debt service revenue minus the amount raised by a levy of 15 15.74
percent times the adjusted net tax capacity of the district minus the second tier debt service
equalization revenue of the district.

(c) The second tier debt service equalization revenue of a district equals the greater
of zero or the eligible debt service revenue, excluding alternative facilities levies under
section 123B.59, subdivision 5, minus the amount raised by a levy of 25 26.24 percent
times the adjusted net tax capacity of the district.

EFFECTIVE DATE.

This section is effective for taxes payable in 2012 and later.

Sec. 2.

Minnesota Statutes 2010, section 123B.53, subdivision 5, is amended to read:

Subd. 5.

Equalized debt service levy.

(a) The equalized debt service levy of a
district equals the sum of the first tier equalized debt service levy and the second tier
equalized debt service levy.

(b) A district's first tier equalized debt service levy equals the district's first tier debt
service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for
the year before the year the levy is certified by the adjusted pupil units in the district for
the school year ending in the year prior to the year the levy is certified; to

(2) $3,200 $3,049.

(c) A district's second tier equalized debt service levy equals the district's second tier
debt service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for
the year before the year the levy is certified by the adjusted pupil units in the district for
the school year ending in the year prior to the year the levy is certified; to

(2) $8,000 $7,622.

EFFECTIVE DATE.

This section is effective for taxes payable in 2012 and later.

Sec. 3.

Minnesota Statutes 2011 Supplement, section 123B.54, is amended to read:

123B.54 DEBT SERVICE APPROPRIATION.

(a) $11,022,000 in fiscal year 2012, $19,484,000 in fiscal year 2013, $23,588,000
$22,103,000 in fiscal year 2014, and $23,967,000 $24,219,000 in fiscal year 2015 and
later are appropriated from the general fund to the commissioner of education for payment
of debt service equalization aid under section 123B.53.

(b) The appropriations in paragraph (a) must be reduced by the amount of any
money specifically appropriated for the same purpose in any year from any state fund.

Sec. 4.

Minnesota Statutes 2011 Supplement, section 123B.57, subdivision 4, is
amended to read:

Subd. 4.

Health and safety levy.

To receive health and safety revenue, a district
may levy an amount equal to the district's health and safety revenue as defined in
subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by
dividing the adjusted net tax capacity of the district for the year preceding the year the
levy is certified by the adjusted marginal cost pupil units in the district for the school year
to which the levy is attributable, to $2,935 $2,796.

EFFECTIVE DATE.

This section is effective for taxes payable in 2012 and later.

Sec. 5.

Minnesota Statutes 2010, section 123B.591, subdivision 3, is amended to read:

Subd. 3.

Deferred maintenance levy.

To obtain deferred maintenance revenue for
fiscal year 2008 and later, a district may levy an amount not more than the product of its
deferred maintenance revenue for the fiscal year times the lesser of one or the ratio of its
adjusted net tax capacity per adjusted marginal cost pupil unit to $5,900 $5,621.

EFFECTIVE DATE.

This section is effective for taxes payable in 2012 and later.

Sec. 6.

Minnesota Statutes 2010, section 124D.20, subdivision 5, is amended to read:

Subd. 5.

Total community education levy.

To obtain total community education
revenue, a district may levy the amount raised by a maximum tax rate of .9 .94 percent
times the adjusted net tax capacity of the district. If the amount of the total community
education levy would exceed the total community education revenue, the total community
education levy shall be determined according to subdivision 6.

EFFECTIVE DATE.

This section is effective for taxes payable in 2012 and later.

Sec. 7.

Minnesota Statutes 2010, section 124D.22, subdivision 3, is amended to read:

Subd. 3.

School-age care levy.

To obtain school-age care revenue, a school
district may levy an amount equal to the district's school-age care revenue as defined
in subdivision 2 multiplied by the lesser of one, or the ratio of the quotient derived by
dividing the adjusted net tax capacity of the district for the year before the year the levy is
certified by the resident pupil units in the district for the school year to which the levy
is attributable, to $2,433 $2,318.

EFFECTIVE DATE.

This section is effective for taxes payable in 2012 and later.

Sec. 8.

Minnesota Statutes 2010, section 126C.10, subdivision 13a, is amended to read:

Subd. 13a.

Operating capital levy.

To obtain operating capital revenue for fiscal
year 2007 and later, a district may levy an amount not more than the product of its
operating capital revenue for the fiscal year times the lesser of one or the ratio of its
adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital
equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year
2006, and $10,700 for fiscal year 2007 and later $10,194.

EFFECTIVE DATE.

This section is effective for taxes payable in 2012 and later.

Sec. 9.

Minnesota Statutes 2010, section 126C.10, subdivision 35, is amended to read:

Subd. 35.

Alternative teacher compensation levy.

For fiscal year 2007 and later,
the alternative teacher compensation levy for a district receiving basic alternative teacher
compensation aid equals the product of (1) the difference between the district's alternative
teacher compensation revenue and the district's basic alternative teacher compensation
aid times (2) the lesser of one or the ratio of the district's adjusted net tax capacity per
adjusted pupil unit to $5,913 $5,634.

EFFECTIVE DATE.

This section is effective for taxes payable in 2012 and later.

Sec. 10.

Minnesota Statutes 2010, section 126C.41, subdivision 5, is amended to read:

Subd. 5.

St. Paul severance levy.

The school board of Independent School District
No. 625, St. Paul, for the purpose of providing moneys for the payment of its severance
pay obligations under a plan approved by resolution of the district, in addition to all other
powers possessed by the school district and in addition to and in excess of any existing
limitation upon the amount it is otherwise authorized by law to levy as taxes, is authorized
to levy taxes annually not exceeding in any one year an amount equal to a net tax capacity
rate of .34 .36 percent for taxes payable in 2002 and thereafter upon all taxable property
within the school district which taxes as levied shall be spread upon the tax rolls, and
all corrections thereof shall be held by the school district, and allocated therefor to be
disbursed and expended by the school district in payment of any public school severance
pay obligations and for no other purpose. Disbursements and expenditures previously
authorized on behalf of the school district for payment of severance pay obligations shall
not be deemed to constitute any part of the cost of the operation and maintenance of
the school district within the meaning of any statutory limitation of any school district
expenditures.

The amount of such severance pay allowable or to become payable in respect of
any such employment or to any such employee shall not exceed the amount permitted
by section 465.72.

EFFECTIVE DATE.

This section is effective for taxes payable in 2012 and later.

Sec. 11.

Minnesota Statutes 2010, section 126C.63, subdivision 8, is amended to read:

Subd. 8.

Maximum effort debt service levy.

(a) "Maximum effort debt service
levy" means the lesser of:

(1) a levy in whichever of the following amounts is applicable:

(i) in any district receiving a debt service loan for a debt service levy payable in
2002 and thereafter, or granted a capital loan after January 1, 2002, a levy in total dollar
amount computed at a rate of 32 33.59 percent of adjusted net tax capacity for taxes
payable in 2002 and thereafter;

(ii) in any district receiving a debt service loan for a debt service levy payable in
2001 or earlier, or granted a capital loan before January 2, 2002, a levy in a total dollar
amount computed at a rate of 28 29.39 percent of adjusted net tax capacity for taxes
payable in 2002 and thereafter; or

(2) a levy in any district for which a capital loan was approved prior to August
1, 1981, a levy in a total dollar amount equal to the sum of the amount of the required
debt service levy and an amount which when levied annually will in the opinion of the
commissioner be sufficient to retire the remaining interest and principal on any outstanding
loans from the state within 30 years of the original date when the capital loan was granted.

(b) The board in any district affected by the provisions of paragraph (a), clause
(2), may elect instead to determine the amount of its levy according to the provisions of
paragraph (a), clause (1). If a district's capital loan is not paid within 30 years because
it elects to determine the amount of its levy according to the provisions of paragraph
(a), clause (2), the liability of the district for the amount of the difference between the
amount it levied under paragraph (a), clause (2), and the amount it would have levied
under paragraph (a), clause (1), and for interest on the amount of that difference, must not
be satisfied and discharged pursuant to Minnesota Statutes 1988, or an earlier edition of
Minnesota Statutes if applicable, section 124.43, subdivision 4.

EFFECTIVE DATE.

This section is effective for taxes payable in 2012 and later.

Sec. 12.

Minnesota Statutes 2010, section 126C.69, subdivision 2, is amended to read:

Subd. 2.

Capital loans eligibility.

Beginning July 1, 1999, a district is not eligible
for a capital loan unless the district's estimated net debt tax rate as computed by the
commissioner after debt service equalization aid would be more than 40 41.98 percent
of adjusted net tax capacity. The estimate must assume a 20-year maturity schedule for
new debt.

EFFECTIVE DATE.

This section is effective for taxes payable in 2012 and later.

Sec. 13.

Minnesota Statutes 2010, section 126C.69, subdivision 9, is amended to read:

Subd. 9.

Loan amount limits.

(a) A loan must not be recommended for approval
for a district exceeding an amount computed as follows:

(1) the amount requested by the district under subdivision 6;

(2) plus the aggregate principal amount of general obligation bonds of the district
outstanding on June 30 of the year following the year the application was received, not
exceeding the limitation on net debt of the district in section 475.53, subdivision 4, or 607
637 percent of its adjusted net tax capacity as most recently determined, whichever is less;

(3) less the maximum net debt permissible for the district on December 1 of the year
the application is received, under the limitation in section 475.53, subdivision 4, or 607
637 percent of its adjusted net tax capacity as most recently determined, whichever is less;

(4) less any amount by which the amount voted exceeds the total cost of the facilities
for which the loan is granted.

(b) The loan may be approved in an amount computed as provided in paragraph (a),
clauses (1) to (3), subject to later reduction according to paragraph (a), clause (4).

EFFECTIVE DATE.

This section is effective for taxes payable in 2012 and later.

ARTICLE 2

EDUCATION SHIFT ADJUSTMENT

Section 1.

Minnesota Statutes 2011 Supplement, section 16A.152, subdivision 2,
is amended to read:

Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general
fund revenues and expenditures, the commissioner of management and budget determines
that there will be a positive unrestricted budgetary general fund balance at the close of
the biennium, the commissioner of management and budget must allocate money to the
following accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account
reaches $653,000,000;

(3) the amount necessary to increase the aid payment schedule for school district
aids and credits payments in section 127A.45 to not more than 90 95 percent rounded
to the nearest tenth of a percent without exceeding the amount available and with any
remaining funds deposited in the budget reserve;

(4) the amount necessary to restore all or a portion of the net aid reductions under
section 127A.441 and to reduce the property tax revenue recognition shift under section
123B.75, subdivision 5, by the same amount;

(5) to the state airports fund, the amount necessary to restore the amount transferred
from the state airports fund under Laws 2008, chapter 363, article 11, section 3,
subdivision 5; and

(6) to the fire safety account in the special revenue fund, the amount necessary to
restore transfers from the account to the general fund made in Laws 2010.

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar
amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
education. The commissioner of education shall increase the aid payment percentage and
reduce the property tax shift percentage by these amounts and apply those reductions to
the current fiscal year and thereafter.

Sec. 2.

Minnesota Statutes 2011 Supplement, section 127A.45, subdivision 2, is
amended to read:

Subd. 2.

Definitions.

(a) "Other district receipts" means payments by county
treasurers pursuant to section 276.10, apportionments from the school endowment fund
pursuant to section 127A.33, apportionments by the county auditor pursuant to section
127A.34, subdivision 2, and payments to school districts by the commissioner of revenue
pursuant to chapter 298.

(b) "Cumulative amount guaranteed" means the product of

(1) the cumulative disbursement percentage shown in subdivision 3; times

(2) the sum of

(i) the current year aid payment percentage of the estimated aid and credit
entitlements paid according to subdivision 13; plus

(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus

(iii) the other district receipts.

(c) "Payment date" means the date on which state payments to districts are made
by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
or a weekday which is a legal holiday, the payment shall be made on the immediately
preceding business day. The commissioner may make payments on dates other than
those listed in subdivision 3, but only for portions of payments from any preceding
payment dates which could not be processed by the electronic funds transfer method due
to documented extenuating circumstances.

(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in
fiscal year 2011, and 60 64.3 in fiscal years year 2012 and 70.2 in fiscal year 2013 and later.

Sec. 3. BALANCES CANCELED TO GENERAL FUND; PAYMENT
SCHEDULE ADJUSTED.

Subdivision 1.

Balance canceled.

$430,088,000 of the unobligated balance in the
budget reserve account created in Minnesota Statutes, section 16A.152, subdivision 1a, is
canceled to the general fund in fiscal year 2013.

Subd. 2.

Aid payment schedule adjusted.

If the commissioner of management and
budget determines that modifications in the aid payment schedule would reduce the need
for short-term borrowing, the commissioner of education may modify the aid payment
metering schedule under Minnesota Statutes, section 127A.45, subdivision 3, to reduce
the cumulative amounts paid during any payment period prior to June 30, 2013, provided
that the reduced cumulative dollar amount paid may not be below the statutory amounts
computed using an aid payment percentage of 64.3 for the current year aid payment
amount and the cumulative amount reduced must not exceed $430,088,000.

Sec. 4. K-12 SHIFT APPROPRIATIONS.

The amounts sufficient to fully fund the K-12 aid entitlements under Laws 2011,
First Special Session chapter 11, adjusted to reflect the higher aid payment percentage
under section 1, are appropriated in fiscal year 2013 from the general fund to the
Department of Education.

ARTICLE 3

FIRE SAFETY ACCOUNT

Section 1.

Minnesota Statutes 2011 Supplement, section 16A.152, subdivision 2,
is amended to read:

Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general
fund revenues and expenditures, the commissioner of management and budget determines
that there will be a positive unrestricted budgetary general fund balance at the close of
the biennium, the commissioner of management and budget must allocate money to the
following accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account
reaches $653,000,000;

(3) the amount necessary to increase the aid payment schedule for school district
aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
nearest tenth of a percent without exceeding the amount available and with any remaining
funds deposited in the budget reserve;

(4) the amount necessary to restore all or a portion of the net aid reductions under
section 127A.441 and to reduce the property tax revenue recognition shift under section
123B.75, subdivision 5, by the same amount; and

(5) to the state airports fund, the amount necessary to restore the amount transferred
from the state airports fund under Laws 2008, chapter 363, article 11, section 3,
subdivision 5; and.

(6) to the fire safety account in the special revenue fund, the amount necessary to
restore transfers from the account to the general fund made in Laws 2010.

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar
amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
education. The commissioner of education shall increase the aid payment percentage and
reduce the property tax shift percentage by these amounts and apply those reductions to
the current fiscal year and thereafter.

Sec. 2.

Minnesota Statutes 2010, section 297I.06, subdivision 1, is amended to read:

Subdivision 1.

Insurance policies surcharge.

(a) Except as otherwise provided in
subdivision 2, each licensed insurer engaged in writing policies of homeowner's insurance
authorized in section 60A.06, subdivision 1, clause (1)(c), or commercial fire policies or
commercial nonliability policies shall collect a surcharge as provided in this paragraph.
Through June 30, 2013, the surcharge is equal to 0.65 percent of the gross premiums
and assessments, less return premiums, on direct business received by the company, or
by its agents for it, for homeowner's insurance policies, commercial fire policies, and
commercial nonliability insurance policies in this state and beginning July 1, 2013, the
surcharge is reduced to 0.5 percent.

(b) The surcharge amount collected under paragraph (a) or subdivision 2, paragraph
(b), may not be considered premium for any other purpose. The surcharge amount
under paragraph (a) must be separately stated on either a billing or policy declaration or
document containing similar information sent to an insured.

(c) Amounts collected by the commissioner under this section must be deposited in
the fire safety account established pursuant to subdivision 3.

Sec. 3.

Minnesota Statutes 2011 Supplement, section 297I.06, subdivision 3, is
amended to read:

Subd. 3.

Fire safety account, annual transfers, allocation.

A special account, to
be known as the fire safety account, is created in the state treasury. The account consists of
the proceeds under subdivisions 1 and 2. $4,227,000 in fiscal year 2012, and $4,228,000
in fiscal year 2013, and $2,368,000 in each year thereafter is transferred from the fire
safety account in the special revenue fund to the general fund to offset the loss of revenue
caused by the repeal of the one-half of one percent tax on fire insurance premiums.

Sec. 4.

Minnesota Statutes 2010, section 299F.012, subdivision 1, is amended to read:

Subdivision 1.

Authorized programs within department.

From the revenues
appropriated from the fire safety account, established under section 297I.06, subdivision
3, the commissioner of public safety may expend funds for the activities and programs
identified by the advisory committee established under subdivision 2 and recommended
to the commissioner of public safety, consistent with the distribution of funds under
subdivision 1a. The commissioner shall not expend funds without the recommendation
of the advisory committee established under subdivision 2. These funds are to be used
to provide resources needed for identified activities and programs of the Minnesota fire
service and to ensure the State Fire Marshal Division responsibilities are fulfilled.

Sec. 5.

Minnesota Statutes 2010, section 299F.012, is amended by adding a subdivision
to read:

Subd. 1a.

Distribution of fire safety account.

(a) On June 30, 2013, any unallocated
balance in the fire safety account under section 297I.06, subdivision 3, is appropriated to
the commissioner of public safety to be allocated as follows: 45 percent of the unallocated
balance for the State Fire Marshal Division, and 55 percent to be distributed according to
the recommendations of the advisory committee under subdivision 2 for the Minnesota
Board of Firefighter Training and Education and for fire-related regional response team
programs and other fire service programs with potential for statewide impact.

(b) Beginning in fiscal year 2014 and thereafter, the revenue in the fire safety
account under section 297I.06, subdivision 3, is appropriated to the commissioner of
public safety to be allocated as follows: 45 percent of the unallocated balance for the State
Fire Marshal Division, and 55 percent to be distributed according to the recommendations
of the advisory committee under subdivision 2 for the Minnesota Board of Firefighter
Training and Education and for fire-related regional response team programs and other
fire service programs with potential for statewide impact.

Sec. 6. FIRE SAFETY; APPROPRIATION.

$4,500,000 is appropriated in fiscal year 2013 from the fire safety account in the
special revenue fund to the commissioner of public safety for activities and programs
under Minnesota Statutes, section 299F.012. This is a onetime appropriation.

ARTICLE 4

HUMAN SERVICES FORECAST ADJUSTMENTS

Section 1. SUMMARY OF APPROPRIATIONS; DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT.

The dollar amounts shown are added to or, if shown in parentheses, are subtracted
from the appropriations in Laws 2011, First Special Session chapter 9, article 10, from
the general fund, or any other fund named, to the Department of Human Services for the
purposes specified in this article, to be available for the fiscal years indicated for each
purpose. The figures "2012" and "2013" used in this article mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2012, or June 30,
2013, respectively.

Sec. 2. COMMISSIONER OF HUMAN SERVICES

Subdivision 1. Total Appropriation

$

(274,134,000)

$

(250,688,000)

Appropriations by Fund
	2012	2013
General Fund	(257,987,000)	(231,828,000)
Health Care Access	(6,865,000)	(11,899,000)
TANF	(9,282,000)	(6,961,000)

Subd. 2. Forecasted Programs
(a) MFIP/DWP Grants

Appropriations by Fund
General Fund	1,718,000	(2,624,000)
TANF	(8,844,000)	(5,140,000)

(b) MFIP Child Care Assistance Grants

(813,000)

2,713,000

(c) General Assistance Grants

530,000

3,199,000

(d) Minnesota Supplemental Aid Grants

(638,000)

(750,000)

(e) Group Residential Housing Grants

3,881,000

6,709,000

(f) MinnesotaCare Grants

(6,865,000)

(11,899,000)

This appropriation is from the health care
access fund.

(g) General Assistance Medical Care Grants

2,175,000

-0-

(h) Medical Assistance Grants

(253,692,000)

(231,305,000)

(i) Alternative Care Grants

-0-

-0-

(j) CD Entitlement Grants

(11,148,000)

(9,770,000)

Subd. 3. Technical Activities

(438,000)

(1,821,000)

This appropriation is from the TANF fund.

Sec. 3. EFFECTIVE DATE.

Sections 1 and 2 are effective the day following final enactment.

ARTICLE 5

VETERANS AFFAIRS

Section 1. COUNTY VETERAN SERVICE OFFICERS; APPROPRIATION.

$200,000 is appropriated in fiscal year 2013 from the general fund to the
commissioner of veterans affairs for a grant to the Minnesota County Veteran Service
Officers. The grant must be used for community outreach as defined in Minnesota
Statutes, section 197.608, to all eligible veterans regarding the availability of benefits they
have earned and especially those relating to posttraumatic stress disorder for all veterans,
including World War II, Korean War, and Vietnam War era veterans. This is a onetime
appropriation.