1.1                          A bill for an act 
  1.2             relating to education finance; expanding the 
  1.3             referendum equalization aid program; eliminating 
  1.4             alternative facilities aid; amending Minnesota 
  1.5             Statutes 2002, sections 123B.59, subdivision 5; 
  1.6             126C.17, subdivision 6; repealing Minnesota Statutes 
  1.7             2002, section 123B.59, subdivisions 6, 7.  
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 123B.59, 
  1.10  subdivision 5, is amended to read: 
  1.11     Subd. 5.  [LEVY AUTHORIZED.] A district, after local board 
  1.12  approval, may levy for costs related to an approved facility 
  1.13  plan as follows:  
  1.14     (a) if the district has indicated to the commissioner that 
  1.15  bonds will be issued, the district may levy for the principal 
  1.16  and interest payments on outstanding bonds issued according to 
  1.17  subdivision 3 ~~after reduction for any alternative facilities aid~~ 
  1.18  ~~receivable under subdivision 6~~; or 
  1.19     (b) if the district has indicated to the commissioner that 
  1.20  the plan will be funded through levy, the district may levy 
  1.21  according to the schedule approved in the plan ~~after reduction~~ 
  1.22  ~~for any alternative facilities aid receivable under subdivision~~ 
  1.23  ~~6~~. 
  1.24     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  1.25  fiscal year 2005.  
  1.26     Sec. 2.  Minnesota Statutes 2002, section 126C.17, 
  2.1   subdivision 6, is amended to read: 
  2.2      Subd. 6.  [REFERENDUM EQUALIZATION LEVY.] (a) ~~For fiscal~~ 
  2.3   ~~year 2003 and later,~~ A district's referendum equalization levy 
  2.4   equals the sum of the first tier referendum equalization levy 
  2.5   and the second tier referendum equalization levy. 
  2.6      (b) A district's first tier referendum equalization levy 
  2.7   equals the district's first tier referendum equalization revenue 
  2.8   times the lesser of one or the ratio of the district's 
  2.9   referendum market value per resident marginal cost pupil unit to 
  2.10  $476,000. 
  2.11     (c) A district's second tier referendum equalization levy 
  2.12  equals the district's second tier referendum equalization 
  2.13  revenue times the lesser of one or the ratio of the district's 
  2.14  referendum market value per resident marginal cost pupil unit to 
  2.15  ~~$270,000~~ $320,000. 
  2.16     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.17  fiscal year 2005.  
  2.18     Sec. 3.  [REPEALER.] 
  2.19     Minnesota Statutes 2002, section 123B.59, subdivisions 6 
  2.20  and 7, are repealed for fiscal years 2005 and later.