1.1                          A bill for an act 
  1.2             relating to education funding; restoring full funding 
  1.3             for the interactive television program; amending 
  1.4             Minnesota Statutes 1998, section 126C.40, subdivision 
  1.5             4. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 126C.40, 
  1.8   subdivision 4, is amended to read: 
  1.9      Subd. 4.  [INTERACTIVE TELEVISION.] (a) A district with its 
  1.10  central administrative office located within economic 
  1.11  development region one, two, three, four, five, six, seven, 
  1.12  eight, nine, and ten may apply to the commissioner for ITV 
  1.13  revenue up to the greater of .5 percent of the adjusted net tax 
  1.14  capacity of the district or $25,000.  Eligible interactive 
  1.15  television expenditures include the construction, maintenance, 
  1.16  and lease costs of an interactive television system for 
  1.17  instructional purposes.  An eligible school district that has 
  1.18  completed the construction of its interactive television system 
  1.19  may also purchase computer hardware and software used primarily 
  1.20  for instructional purposes and access to the Internet provided 
  1.21  that its total expenditures for interactive television 
  1.22  maintenance and lease costs and for computer hardware and 
  1.23  software under this subdivision do not exceed its interactive 
  1.24  television revenue for fiscal year 1998.  The approval by the 
  1.25  commissioner and the application procedures set forth in 
  2.1   subdivision 1 shall apply to the revenue in this subdivision.  
  2.2   In granting the approval, the commissioner shall consider 
  2.3   whether the district is maximizing efficiency through peak use 
  2.4   and off-peak use pricing structures. 
  2.5      (b) To obtain ITV revenue, a district may levy an amount 
  2.6   not to exceed the district's ITV revenue times the lesser of one 
  2.7   or the ratio of: 
  2.8      (1) the quotient derived by dividing the adjusted net tax 
  2.9   capacity of the district for the year before the year the levy 
  2.10  is certified by the resident pupil units in the district for the 
  2.11  year to which the levy is attributable; to 
  2.12     (2) $10,000.  
  2.13     (c) A district's ITV aid is the difference between its ITV 
  2.14  revenue and the ITV levy. 
  2.15     (d) The revenue in the first year after reorganization for 
  2.16  a district that has reorganized under sections 123A.35 to 
  2.17  123A.41, 123A.46, or 123A.48 shall be the greater of: 
  2.18     (1) the revenue computed for the reorganized district under 
  2.19  paragraph (a), or 
  2.20     (2)(i) for two districts that reorganized, 75 percent of 
  2.21  the revenue computed as if the districts involved in the 
  2.22  reorganization were separate, or 
  2.23     (ii) for three or more districts that reorganized, 50 
  2.24  percent of the revenue computed as if the districts involved in 
  2.25  the reorganization were separate. 
  2.26     (e) The revenue in paragraph (d) is increased by the 
  2.27  difference between the initial revenue and ITV lease costs for 
  2.28  leases that had been entered into by the preexisting districts 
  2.29  on the effective date of the consolidation or combination and 
  2.30  with a term not exceeding ten years.  This increased revenue is 
  2.31  only available for the remaining term of the lease.  However, in 
  2.32  no case shall the revenue exceed the amount available had the 
  2.33  preexisting districts received revenue separately. 
  2.34     ~~(f) Effective for fiscal year 2000, the revenue under this~~ 
  2.35  ~~section shall be 75 percent of the amount determined in~~ 
  2.36  ~~paragraph (a); for fiscal year 2001, 50 percent of the amount in~~ 
  3.1   ~~paragraph (a); and for fiscal year 2002, 25 percent of the~~ 
  3.2   ~~amount in paragraph (a).~~ 
  3.3      ~~(g) This section expires effective for revenue for fiscal~~ 
  3.4   ~~year 2003, or when leases in existence on the effective date of~~ 
  3.5   ~~Laws 1997, First Special Session chapter 4, expire.~~  
  3.6      Sec. 2.  [EFFECTIVE DATE.] 
  3.7      Section 1 is effective the day following final enactment 
  3.8   for revenue for fiscal year 2000 and later.