1.1                          A bill for an act
  1.2             relating to education; excluding commercial and 
  1.3             industrial property and certain farm lands from the 
  1.4             tax base referendum levies are spread against; 
  1.5             creating a statewide equalization property tax on 
  1.6             commercial and industrial property; funding 
  1.7             equalization aid; requiring existing referendum levies 
  1.8             to be reauthorized; eliminating certain caps on 
  1.9             referendum revenue; appropriating money; amending 
  1.10            Minnesota Statutes 1994, sections 124.214, 
  1.11            subdivisions 2 and 3; 124.248, subdivision 3; 
  1.12            124.2727, subdivision 6b; 124.273, subdivision 1b; 
  1.13            124.32, subdivisions 1b and 1f; 124.322, subdivisions 
  1.14            1a and 3; 124.323, subdivision 1; 124.574, subdivision 
  1.15            2b; 124.961; 124A.02, by adding a subdivision; 
  1.16            124A.03, subdivisions 1c, 1e, 1f, 1g, 2, 2a, and by 
  1.17            adding subdivisions; 124A.22, subdivision 2; 125.1895, 
  1.18            subdivision 4; and 275.065, subdivision 3; proposing 
  1.19            coding for new law as Minnesota Statutes, chapter 
  1.20            124D; repealing Minnesota Statutes 1994, sections 
  1.21            124.321; and 124.322, subdivision 4. 
  1.22  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.23     Section 1.  Minnesota Statutes 1994, section 124.214, 
  1.24  subdivision 2, is amended to read: 
  1.25     Subd. 2.  [ABATEMENTS.] Whenever by virtue of chapter 278, 
  1.26  sections 270.07, 375.192, or otherwise, the net tax capacity of 
  1.27  any school district for any taxable year is changed after the 
  1.28  taxes for that year have been spread by the county auditor and 
  1.29  the local tax rate as determined by the county auditor based 
  1.30  upon the original net tax capacity is applied upon the changed 
  1.31  net tax capacities, the county auditor shall, prior to February 
  1.32  1 of each year, certify to the commissioner of education the 
  1.33  amount of any resulting net revenue loss that accrued to the 
  2.1   school district during the preceding year.  Each year, the 
  2.2   commissioner shall pay an abatement adjustment to the district 
  2.3   in an amount calculated according to the provisions of this 
  2.4   subdivision.  This amount shall be deducted from the amount of 
  2.5   the levy authorized by section 124.912, subdivision 9.  The 
  2.6   amount of the abatement adjustment shall be the product of:  
  2.7      (1) the net revenue loss as certified by the county 
  2.8   auditor, times 
  2.9      (2) the ratio of:  
  2.10     (a) the sum of the amounts of the district's certified levy 
  2.11  in the preceding year according to the following:  
  2.12     (i) section 124A.23 if the district receives general 
  2.13  education aid according to that section, or section 124B.20, if 
  2.14  the education district of which the district is a member 
  2.15  receives general education aid according to that section; 
  2.16     (ii) section 124.226, subdivisions 1 and 4, if the district 
  2.17  receives transportation aid according to section 124.225; 
  2.18     (iii) section 124.243, if the district receives capital 
  2.19  expenditure facilities aid according to that section; 
  2.20     (iv) section 124.244, if the district receives capital 
  2.21  expenditure equipment aid according to that section; 
  2.22     (v) section 124.83, if the district receives health and 
  2.23  safety aid according to that section; 
  2.24     (vi) sections 124.2713, 124.2714, and 124.2715, if the 
  2.25  district receives aid for community education programs according 
  2.26  to any of those sections; 
  2.27     (vii) section 124.2711, subdivision 2a, if the district 
  2.28  receives early childhood family education aid according to 
  2.29  section 124.2711; 
  2.30     (viii) section 124.321, subdivision 3, if the district 
  2.31  receives special education levy equalization aid according to 
  2.32  that section; 
  2.33     (ix) section 124A.03, subdivision 1g, if the district 
  2.34  receives referendum equalization aid according to that section; 
  2.35  and 
  2.36     (x) (ix) section 124A.22, subdivision 4a, if the district 
  3.1   receives training and experience aid according to that section; 
  3.2      (b) to the total amount of the district's certified levy in 
  3.3   the preceding October, plus or minus auditor's adjustments. 
  3.4      Sec. 2.  Minnesota Statutes 1994, section 124.214, 
  3.5   subdivision 3, is amended to read: 
  3.6      Subd. 3.  [EXCESS TAX INCREMENT.] If a return of excess tax 
  3.7   increment is made to a school district pursuant to section 
  3.8   469.176, subdivision 2, or upon decertification of a tax 
  3.9   increment district, the school district's aid and levy 
  3.10  limitations must be adjusted for the fiscal year in which the 
  3.11  excess tax increment is paid under the provisions of this 
  3.12  subdivision. 
  3.13     (a) An amount must be subtracted from the school district's 
  3.14  aid for the current fiscal year equal to the product of: 
  3.15     (1) the amount of the payment of excess tax increment to 
  3.16  the school district, times 
  3.17     (2) the ratio of: 
  3.18     (A) the sum of the amounts of the school district's 
  3.19  certified levy for the fiscal year in which the excess tax 
  3.20  increment is paid according to the following: 
  3.21     (i) section 124A.23, if the district receives general 
  3.22  education aid according to that section, or section 124B.20, if 
  3.23  the education district of which the district is a member 
  3.24  receives general education aid according to that section; 
  3.25     (ii) section 124.226, subdivisions 1 and 4, if the school 
  3.26  district receives transportation aid according to section 
  3.27  124.225; 
  3.28     (iii) section 124.243, if the district receives capital 
  3.29  expenditure facilities aid according to that section; 
  3.30     (iv) section 124.244, if the district receives capital 
  3.31  expenditure equipment aid according to that section; 
  3.32     (v) section 124.83, if the district receives health and 
  3.33  safety aid according to that section; 
  3.34     (vi) sections 124.2713, 124.2714, and 124.2715, if the 
  3.35  district receives aid for community education programs according 
  3.36  to any of those sections; 
  4.1      (vii) section 124.2711, subdivision 2a, if the district 
  4.2   receives early childhood family education aid according to 
  4.3   section 124.2711; 
  4.4      (viii) section 124.321, subdivision 3, if the district 
  4.5   receives special education levy equalization aid according to 
  4.6   that section; 
  4.7      (ix) section 124A.03, subdivision 1g, if the district 
  4.8   receives referendum equalization aid according to that section; 
  4.9   and 
  4.10     (x) (ix) section 124A.22, subdivision 4a, if the district 
  4.11  receives training and experience aid according to that section; 
  4.12     (B) to the total amount of the school district's certified 
  4.13  levy for the fiscal year, plus or minus auditor's adjustments. 
  4.14     (b) An amount must be subtracted from the school district's 
  4.15  levy limitation for the next levy certified equal to the 
  4.16  difference between: 
  4.17     (1) the amount of the distribution of excess increment, and 
  4.18     (2) the amount subtracted from aid pursuant to clause (a). 
  4.19     If the aid and levy reductions required by this subdivision 
  4.20  cannot be made to the aid for the fiscal year specified or to 
  4.21  the levy specified, the reductions must be made from aid for 
  4.22  subsequent fiscal years, and from subsequent levies.  The school 
  4.23  district shall use the payment of excess tax increment to 
  4.24  replace the aid and levy revenue reduced under this subdivision. 
  4.25     This subdivision applies only to the total amount of excess 
  4.26  increments received by a school district for a calendar year 
  4.27  that exceeds $25,000. 
  4.28     Sec. 3.  Minnesota Statutes 1994, section 124.248, 
  4.29  subdivision 3, is amended to read: 
  4.30     Subd. 3.  [SPECIAL EDUCATION AID.] Special education aid 
  4.31  shall be paid to an outcome-based school according to section 
  4.32  124.32 as though it were a school district.  The school may 
  4.33  charge tuition to the district of residence as provided in 
  4.34  section 120.17, subdivision 4.  The outcome-based school shall 
  4.35  allocate its special education levy equalization revenue to the 
  4.36  resident districts of the pupils attending the outcome-based 
  5.1   school as though it were a cooperative, as provided in section 
  5.3   124.321 124.32, subdivision 2, paragraph (a), clause (1) 12.  
  5.4   The districts of residence shall levy as though they were 
  5.5   participating in a cooperative, as provided in section 124.321, 
  5.6   subdivision 3. 
  5.7      Sec. 4.  Minnesota Statutes 1994, section 124.2727, 
  5.8   subdivision 6b, is amended to read: 
  5.9      Subd. 6b.  [DISTRICT COOPERATION LEVY.] To receive district 
  5.10  cooperation revenue, a district may levy an amount equal to the 
  5.11  district's cooperation revenue multiplied by the lesser of one, 
  5.12  or the ratio of the quotient derived by dividing the adjusted 
  5.13  net tax capacity of the district for the year preceding the year 
  5.14  the levy is certified by the actual pupil units in the district 
  5.15  for the school year to which the levy is attributable 
  5.16  to $3,500 the equalizing factor defined in section 124A.02. 
  5.17     Sec. 5.  Minnesota Statutes 1994, section 124.273, 
  5.18  subdivision 1b, is amended to read: 
  5.19     Subd. 1b.  [TEACHERS SALARIES.] Each year the state shall 
  5.20  pay a school district a portion of the salary of one full-time 
  5.21  equivalent teacher for each 40 pupils of limited English 
  5.22  proficiency enrolled in the district.  Notwithstanding the 
  5.23  foregoing, the state shall pay a portion of the salary of 
  5.24  one-half of a full-time equivalent teacher to a district with 20 
  5.25  or fewer pupils of limited English proficiency enrolled.  The 
  5.26  portion for a full-time teacher shall be the lesser of 55.2 68 
  5.27  percent of the salary or $15,320.  The portion for a part-time 
  5.28  or limited-time teacher shall be the lesser of 55.2 68 percent 
  5.29  of the salary or the product of $15,320 times the ratio of the 
  5.30  person's actual employment to full-time employment.  For the 
  5.31  purposes of this subdivision, a teacher includes nonlicensed 
  5.32  personnel who provide direct instruction to students of limited 
  5.33  English proficiency under the supervision of a licensed teacher. 
  5.34     Sec. 6.  Minnesota Statutes 1994, section 124.32, 
  5.35  subdivision 1b, is amended to read: 
  5.36     Subd. 1b.  [TEACHERS SALARIES.] (a) Each year the state 
  5.37  shall pay to a district a portion of the salary of each 
  6.1   essential person employed in the district's program for children 
  6.2   with a disability during the regular school year, whether the 
  6.3   person is employed by one or more districts.  The state shall 
  6.4   also pay to the Minnesota state academy for the deaf or the 
  6.5   Minnesota state academy for the blind a part of the salary of 
  6.6   each instructional aide assigned to a child attending the 
  6.7   academy, if that aide is required by the child's individual 
  6.8   education plan.  
  6.9      (b) For the 1992-1993 school year and thereafter, The 
  6.10  portion for a full-time person is an amount not to exceed the 
  6.11  lesser of 55.2 equal to 68 percent of the salary or $15,320.  
  6.12  The portion for a part-time or limited-time person is an 
  6.13  amount not to exceed the lesser of 55.2 equal to 68 percent of 
  6.14  the salary or the product of $15,320 times the ratio of the 
  6.15  person's actual employment to full-time employment. 
  6.16     Sec. 7.  Minnesota Statutes 1994, section 124.32, 
  6.17  subdivision 1f, is amended to read: 
  6.18     Subd. 1f.  [ESSENTIAL PERSONNEL.] For the purposes of this 
  6.19  section and section 124.321, essential personnel means teachers, 
  6.20  related services and support services staff providing direct 
  6.21  services to students. 
  6.22     Sec. 8.  Minnesota Statutes 1994, section 124.322, 
  6.23  subdivision 1a, is amended to read: 
  6.24     Subd. 1a.  [DEFINITIONS.] In this section, the definitions 
  6.25  in this subdivision apply. 
  6.26     (a) "Base revenue" means the following: 
  6.27     (1) for the first fiscal year after approval of the 
  6.28  district's application, base revenue means the sum of the 
  6.29  district's revenue for the preceding fiscal year for its special 
  6.30  education program under sections section 124.32, subdivisions 
  6.31  1b, 1d, 2, 5, and 10, and 124.321, subdivision 1; 
  6.32     (2) for the second fiscal year after approval of a 
  6.33  district's application, base revenue means the sum of the 
  6.34  district's revenue for the second prior fiscal year for its 
  6.35  special education program under sections section 124.32, 
  6.36  subdivisions 1b, 1d, 2, 5, and 10, and 124.321, subdivision 1; 
  7.1   and 
  7.2      (3) for the third fiscal year after approval of a 
  7.3   district's application, and thereafter, base revenue means the 
  7.4   sum of the revenue a district would have been entitled to in the 
  7.5   second prior fiscal year for its special education program under 
  7.6   sections section 124.32, subdivisions 1b, 1d, 2, 5, and 10, and 
  7.7   124.321, subdivision 1, based on activities defined as 
  7.8   reimbursable under state board rules for special education and 
  7.9   nonspecial education students, and additional activities as 
  7.10  detailed and approved by the commissioner of education. 
  7.11     (b) "Base aid" means the following: 
  7.12     (1) for the first fiscal year after approval of a 
  7.13  district's application, base aid means the sum of the district's 
  7.14  gross aid for the preceding fiscal year for its special 
  7.15  education program under section 124.32, subdivisions 1b, 1d, 2, 
  7.16  5, and 10; 
  7.17     (2) for the second fiscal year after approval of a 
  7.18  district's application, base aid means the sum of the district's 
  7.19  gross aid for the second prior fiscal year for its special 
  7.20  education program under section 124.32, subdivisions 1b, 1d, 2, 
  7.21  5, and 10; and 
  7.22     (3) for the third fiscal year after approval of a 
  7.23  district's application and thereafter, base aid means the sum of 
  7.24  the gross aid the district would have been entitled to in the 
  7.25  second prior fiscal year for its special education program under 
  7.26  section 124.32, subdivisions 1b, 1d, 2, 5, and 10, based on 
  7.27  activities defined as reimbursable under state board of 
  7.28  education rules for special education and nonspecial education 
  7.29  students, and additional activities as detailed and approved by 
  7.30  the commissioner of education in the application plan. 
  7.31     (c) Notwithstanding paragraphs (a) and (b), base revenue 
  7.32  and base aid for 1995 and later fiscal years must not include 
  7.33  revenue and aid under section 124.32, subdivision 5. 
  7.34     (d) "Alternative delivery revenue inflator" means: 
  7.35     (1) for the first fiscal year after approval of a 
  7.36  district's application, the greater of 1.017 or the ratio of (i) 
  8.1   the statewide average special education revenue under 
  8.2   sections section 124.32 and 124.321 per pupil in average daily 
  8.3   membership for the current fiscal year, to (ii) the statewide 
  8.4   average special education revenue per pupil in average daily 
  8.5   membership for the previous fiscal year. 
  8.6      (2) for the second and later fiscal years, the greater of 
  8.7   1.034 or the ratio of (i) the statewide average special 
  8.8   education revenue under sections section 124.32 and 124.321 per 
  8.9   pupil in average daily membership for the current fiscal year, 
  8.10  to (ii) the statewide average special education revenue per 
  8.11  pupil in average daily membership for the second prior fiscal 
  8.12  year. 
  8.13     (e) The commissioner of education shall adjust each 
  8.14  district's base revenue and base aid to reflect any changes in 
  8.15  special education services required by rule or statute.  
  8.16     Sec. 9.  Minnesota Statutes 1994, section 124.322, 
  8.17  subdivision 3, is amended to read: 
  8.18     Subd. 3.  [ALTERNATIVE DELIVERY AID.] (a) For the first 
  8.19  fiscal year after approval of an application, a district's 
  8.20  alternative delivery aid equals its base aid multiplied by the 
  8.21  product of 1.017 times the ratio of the district's average daily 
  8.22  membership for the current fiscal year to the district's average 
  8.23  daily membership for the preceding fiscal year.  For the second 
  8.24  and later fiscal years a district's alternative delivery aid 
  8.25  equals its base aid multiplied by the product of 1.034 times the 
  8.26  ratio of the district's average daily membership for the current 
  8.27  fiscal year to the district's average daily membership for the 
  8.28  second preceding fiscal year.  A district that receives aid 
  8.29  under this subdivision shall not receive aid under section 
  8.30  124.32, subdivisions 1b, 1d, 2, 5, and 10, for the same fiscal 
  8.31  year. 
  8.32     (b) For fiscal year 1996 and thereafter, a district's aid 
  8.33  is equal to the amount calculated in paragraph (a) plus an 
  8.34  amount equal to a levy determined according to subdivision 4. 
  8.35     Sec. 10.  Minnesota Statutes 1994, section 124.323, 
  8.36  subdivision 1, is amended to read: 
  9.1      Subdivision 1.  [DEFINITIONS.] In this section, the 
  9.2   definitions in this subdivision apply. 
  9.3      (a) "Unreimbursed special education cost" means the sum of 
  9.4   the following: 
  9.5      (1) expenditures for teachers' salaries, contracted 
  9.6   services, supplies, and equipment eligible for revenue under 
  9.7   sections 124.32, subdivisions 1b, 1d, 2, and 10, and 124.322, 
  9.8   subdivision 2; plus 
  9.9      (2) expenditures for tuition bills received under section 
  9.10  120.17; minus 
  9.11     (3) revenue for teachers' salaries, contracted services, 
  9.12  supplies, and equipment under sections 124.32, subdivisions 1b, 
  9.13  1d, 2, and 10; 124.321, subdivision 1, clause (1);, and 124.322, 
  9.14  subdivision 2; minus 
  9.15     (4) tuition receipts under section 120.17. 
  9.16     (b) "General revenue" means the sum of the general 
  9.17  education revenue according to section 124A.22, subdivision 1, 
  9.18  plus the total referendum revenue according to section 124A.03, 
  9.19  subdivision 1e. 
  9.20     Sec. 11.  Minnesota Statutes 1994, section 124.574, 
  9.21  subdivision 2b, is amended to read: 
  9.22     Subd. 2b.  [SALARIES.] (a) Each year the state shall pay to 
  9.23  any district or cooperative center a portion of the salary of 
  9.24  each essential licensed person who provides direct instructional 
  9.25  services to students, employed during that fiscal year for 
  9.26  services rendered in that district's or center's secondary 
  9.27  vocational education programs for children with a disability. 
  9.28     (b) For fiscal year 1993 and thereafter, The portion for a 
  9.29  full-time person is an amount not to exceed the lesser of 55.2 
  9.30  68 percent of the salary or $15,320.  The portion for a 
  9.31  part-time or limited-time person is the lesser of 55.2 equal to 
  9.32  68 percent of the salary or the product of $15,320 times the 
  9.33  ratio of the person's actual employment to full-time employment. 
  9.34     Sec. 12.  Minnesota Statutes 1994, section 124.961, is 
  9.35  amended to read: 
  9.36     124.961 [DEBT SERVICE APPROPRIATION.] 
 10.1      (a) $17,000,000 in fiscal year 1994, $26,000,000 in fiscal 
 10.2   year 1995, and $31,600,000 in fiscal year 1996 and each year 
 10.3   thereafter is appropriated from the general fund to the 
 10.4   commissioner of education for payment of debt service 
 10.5   equalization aid under section 124.95.  The 1994 appropriation 
 10.6   includes $3,000,000 for 1993 and $14,000,000 for 1994.  For 
 10.7   fiscal years 1996 and later, the amount necessary for debt 
 10.8   service equalization aid under section 124.95, subdivision 5, is 
 10.9   appropriated from the equalization aid account of the general 
 10.10  fund under section 124D.01, subdivision 4. 
 10.11     (b) The appropriations in paragraph (a) must be reduced by 
 10.12  the amount of any money specifically appropriated for the same 
 10.13  purpose in any year from any state fund. 
 10.14     Sec. 13.  Minnesota Statutes 1994, section 124A.02, is 
 10.15  amended by adding a subdivision to read: 
 10.16     Subd. 26.  [EQUALIZATION AIDS ADJUSTED TAX CAPACITY.] 
 10.17  "Equalization aids adjusted tax capacity" means a district's net 
 10.18  tax capacity less the sum of the portion of net tax capacity 
 10.19  attributable to:  
 10.20     (1) the district's commercial-industrial property, 
 10.21  consisting of class 3a and 3b property as defined under section 
 10.22  273.13, subdivision 24; 
 10.23     (2) the district's class 5 property as defined under 
 10.24  section 273.13, subdivision 31; and 
 10.25     (3) the district's class 2a property as defined under 
 10.26  section 273.13, subdivision 23; all adjusted by the sales ratio 
 10.27  for that year according to section 124.2131. 
 10.28     Sec. 14.  Minnesota Statutes 1994, section 124A.03, 
 10.29  subdivision 1c, is amended to read: 
 10.30     Subd. 1c.  [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 
 10.31  subdivision 1b, a district's referendum allowance must not 
 10.32  exceed the greater of:  
 10.33     (1) the district's referendum allowance for fiscal year 
 10.34  1994; or 
 10.35     (2) 25 percent of the formula allowance for fiscal year 
 10.36  1995 and later.  
 11.1      A district is not subject to the referendum allowance 
 11.2   limitations of this subdivision if the full amount of the 
 11.3   district's referendum levy is spread according to subdivision 2a.
 11.4      Sec. 15.  Minnesota Statutes 1994, section 124A.03, 
 11.5   subdivision 1e, is amended to read: 
 11.6      Subd. 1e.  [TOTAL REFERENDUM REVENUE.] The total referendum 
 11.7   revenue for each district equals the district's referendum 
 11.8   allowance times the actual pupil units for the school year plus 
 11.9   revenue authorized by the school board under subdivision 7. 
 11.10     Sec. 16.  Minnesota Statutes 1994, section 124A.03, 
 11.11  subdivision 1f, is amended to read: 
 11.12     Subd. 1f.  [REFERENDUM EQUALIZATION REVENUE.] For fiscal 
 11.13  years 1995, 1996, and 1997, a district's referendum equalization 
 11.14  revenue equals $315 times the district's actual pupil units for 
 11.15  that year. 
 11.16     Referendum equalization revenue must not exceed a 
 11.17  district's total referendum revenue for that year.  For fiscal 
 11.18  years 1998 and later, referendum equalization revenue equals 
 11.19  total referendum revenue.  Referendum revenue approved after 
 11.20  July 1, 1994, must be reserved and may be used only for the 
 11.21  purpose specified on the referendum ballot. 
 11.22     Sec. 17.  Minnesota Statutes 1994, section 124A.03, 
 11.23  subdivision 1g, is amended to read: 
 11.24     Subd. 1g.  [REFERENDUM EQUALIZATION LEVY.] A district's 
 11.25  referendum equalization levy equals the district's referendum 
 11.26  equalization revenue times the lesser of one or the ratio of the 
 11.27  district's equalization aids adjusted net tax capacity per 
 11.28  actual pupil unit to 100 percent of the equalizing factor as 
 11.29  defined in section 124A.02, subdivision 8. 
 11.30     Sec. 18.  Minnesota Statutes 1994, section 124A.03, 
 11.31  subdivision 2, is amended to read: 
 11.32     Subd. 2.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 11.33  by section 124A.22, subdivision 1, may be increased in the 
 11.34  amount approved by the voters of the district at a referendum 
 11.35  called for the purpose.  The referendum may be called by the 
 11.36  school board or shall be called by the school board upon written 
 12.1   petition of qualified voters of the district.  The referendum 
 12.2   shall be conducted during the calendar year before the increased 
 12.3   levy authority, if approved, first becomes payable.  Only one 
 12.4   election to approve an increase may be held in a calendar year.  
 12.5   Unless the referendum is conducted by mail under paragraph (g), 
 12.6   the referendum must be held on the first Tuesday after the first 
 12.7   Monday in November.  The ballot shall state the maximum amount 
 12.8   of the increased revenue per actual pupil unit, the estimated 
 12.9   referendum tax rate as a percentage of market value equalization 
 12.10  aids adjusted tax capacity in the first year it is to be levied, 
 12.11  and that the revenue shall be used to finance school 
 12.12  operations.  The ballot shall also state the purpose for which 
 12.13  the referendum revenue is to be used.  The ballot may state that 
 12.14  existing referendum levy authority is expiring.  In this case, 
 12.15  the ballot may also compare the proposed levy authority to the 
 12.16  existing expiring levy authority, and express the proposed 
 12.17  increase as the amount, if any, over the expiring referendum 
 12.18  levy authority.  The ballot shall designate the specific number 
 12.19  of years, not to exceed ten, for which the referendum 
 12.20  authorization shall apply.  The ballot may contain a textual 
 12.21  portion with the information required in this subdivision and a 
 12.22  question stating substantially the following:  
 12.23     "Shall the increase in the revenue proposed by (petition 
 12.24  to) the board of ........., School District No. .., be approved?"
 12.25     If approved, an amount equal to the approved revenue per 
 12.26  actual pupil unit times the actual pupil units for the school 
 12.27  year beginning in the year after the levy is certified shall be 
 12.28  authorized for certification for the number of years approved, 
 12.29  if applicable, or until revoked or reduced by the voters of the 
 12.30  district at a subsequent referendum. 
 12.31     (b) The school board shall prepare and deliver by first 
 12.32  class mail at least 15 days but no more than 30 days prior to 
 12.33  the day of the referendum to each taxpayer a notice of the 
 12.34  referendum and the proposed revenue increase.  The school board 
 12.35  need not mail more than one notice to any taxpayer.  For the 
 12.36  purpose of giving mailed notice under this subdivision, owners 
 13.1   shall be those shown to be owners on the records of the county 
 13.2   auditor or, in any county where tax statements are mailed by the 
 13.3   county treasurer, on the records of the county treasurer.  Every 
 13.4   property owner whose name does not appear on the records of the 
 13.5   county auditor or the county treasurer shall be deemed to have 
 13.6   waived this mailed notice unless the owner has requested in 
 13.7   writing that the county auditor or county treasurer, as the case 
 13.8   may be, include the name on the records for this purpose.  The 
 13.9   notice must project the anticipated amount of tax increase in 
 13.10  annual dollars and annual percentage for typical residential 
 13.11  homesteads, agricultural homesteads, and apartments, and 
 13.12  commercial-industrial property within the school district. 
 13.13     The notice for a referendum may state that an existing 
 13.14  referendum levy is expiring and project the anticipated amount 
 13.15  of increase over the existing referendum levy, if any, in annual 
 13.16  dollars and annual percentage for typical residential 
 13.17  homesteads, agricultural homesteads, and apartments, and 
 13.18  commercial-industrial property within the school district. 
 13.19     The notice must include the following statement:  "Passage 
 13.20  of this referendum will result in an increase in your property 
 13.21  taxes." 
 13.22     (c) A referendum on the question of revoking or reducing 
 13.23  the increased revenue amount authorized pursuant to paragraph 
 13.24  (a) may be called by the school board and shall be called by the 
 13.25  school board upon the written petition of qualified voters of 
 13.26  the district.  A referendum to revoke or reduce the levy amount 
 13.27  must be based upon the dollar amount, local tax rate, or amount 
 13.28  per actual pupil unit, that was stated to be the basis for the 
 13.29  initial authorization.  Revenue approved by the voters of the 
 13.30  district pursuant to paragraph (a) must be received at least 
 13.31  once before it is subject to a referendum on its revocation or 
 13.32  reduction for subsequent years.  Only one revocation or 
 13.33  reduction referendum may be held to revoke or reduce referendum 
 13.34  revenue for any specific year and for years thereafter. 
 13.35     (d) A petition authorized by paragraph (a) or (c) shall be 
 13.36  effective if signed by a number of qualified voters in excess of 
 14.1   15 percent of the registered voters of the school district on 
 14.2   the day the petition is filed with the school board.  A 
 14.3   referendum invoked by petition shall be held on the date 
 14.4   specified in paragraph (a). 
 14.5      (e) The approval of 50 percent plus one of those voting on 
 14.6   the question is required to pass a referendum authorized by this 
 14.7   subdivision. 
 14.8      (f) At least 15 days prior to the day of the referendum, 
 14.9   the district shall submit a copy of the notice required under 
 14.10  paragraph (b) to the commissioner of education.  Within 15 days 
 14.11  after the results of the referendum have been certified by the 
 14.12  school board, or in the case of a recount, the certification of 
 14.13  the results of the recount by the canvassing board, the district 
 14.14  shall notify the commissioner of education of the results of the 
 14.15  referendum. 
 14.16     (g) Any referendum under this section held on a day other 
 14.17  than the first Tuesday after the first Monday in November must 
 14.18  be conducted by mail in accordance with section 204B.46.  
 14.19  Notwithstanding paragraph (b) to the contrary, in the case of a 
 14.20  referendum conducted by mail under this paragraph, the notice 
 14.21  required by paragraph (b) shall be prepared and delivered by 
 14.22  first class mail at least 20 days before the referendum. 
 14.23     Sec. 19.  Minnesota Statutes 1994, section 124A.03, 
 14.24  subdivision 2a, is amended to read: 
 14.25     Subd. 2a.  [SCHOOL REFERENDUM LEVY; MARKET VALUE 
 14.26  EQUALIZATION AIDS TAX CAPACITY.] Notwithstanding the provisions 
 14.27  of subdivision 2, a school referendum levy approved after 
 14.28  November 1, 1992 1994, for taxes payable in 1993 1995 and 
 14.29  thereafter, shall be levied against the referendum market value 
 14.30  of all taxable property as defined in section 124A.02, 
 14.31  subdivision 3b.  Any referendum levy amount subject to the 
 14.32  requirements of this subdivision shall be certified separately 
 14.33  to the county auditor under section 275.07. 
 14.34     All other provisions of subdivision 2 that do not conflict 
 14.35  with this subdivision shall apply to referendum levies under 
 14.36  this subdivision district's net tax capacity less the portion of 
 15.1   net tax capacity attributable to the district's 
 15.2   commercial-industrial property, consisting of class 3a and 3b 
 15.3   and property as defined under section 273.13, subdivision 24, 
 15.4   class 5 property as defined under section 273.13, subdivision 
 15.5   31, and class 2a property as defined under section 273.13, 
 15.6   subdivision 23.  
 15.7      Sec. 20.  Minnesota Statutes 1994, section 124A.03, is 
 15.8   amended by adding a subdivision to read: 
 15.9      Subd. 2c.  [EXPIRATION OF EXISTING REFERENDUM AUTHORITY.] 
 15.10  Any referendum authority approved under this section before 
 15.11  January 1, 1992, that does not expire before July 1, 1997, 
 15.12  expires July 1, 1997, and unless reauthorized, must not be 
 15.13  levied for taxes payable in 1998 or later years. 
 15.14     Sec. 21.  Minnesota Statutes 1994, section 124A.03, is 
 15.15  amended by adding a subdivision to read: 
 15.16     Subd. 7.  [DISCRETIONARY REVENUE.] (a) Annually a school 
 15.17  board may adopt a resolution, upon a vote of six of its seven 
 15.18  members, or five of six members if the board has six members to 
 15.19  increase the referendum revenue of a district up to $100 times 
 15.20  the number of pupil units in the district.  The resolution must 
 15.21  be adopted no later than July 1 of the calendar year preceding 
 15.22  the year for which the revenue is attributable.  The resolution 
 15.23  may only be at a meeting held specifically for that purpose.  
 15.24  The board shall notify the commissioner of education of the 
 15.25  resolution within ten days of passage.  
 15.26     (b) A referendum on the question of revoking or reducing 
 15.27  the increased revenue amount authorized under paragraph (a) may 
 15.28  be called by the school board and shall be called by the school 
 15.29  board upon the written petition of qualified voters of the 
 15.30  district.  A referendum to revoke or reduce the levy amount must 
 15.31  be based upon the dollar amount, local tax rate, or amount per 
 15.32  actual pupil unit, that was stated to be the basis for the 
 15.33  initial authorization.  Unless the referendum is conducted by 
 15.34  mail, the referendum must be held on the first Tuesday after the 
 15.35  first Monday in November.  One revocation or reduction 
 15.36  referendum may be held to revoke or reduce referendum revenue 
 16.1   for any specific year and for years thereafter.  
 16.2      (c) A petition authorized under paragraph (b) shall be 
 16.3   effective if signed by a number of qualified voters in excess of 
 16.4   15 percent of the registered voters of the school district on 
 16.5   the day the petition is filed with the school board.  A 
 16.6   referendum invoked by petition shall be held on the date 
 16.7   specified in paragraph (a).  
 16.8      (d) The approval of 50 percent plus one of those voting on 
 16.9   the question is required to pass a referendum authorized by this 
 16.10  subdivision. 
 16.11     Sec. 22.  Minnesota Statutes 1994, section 124A.22, 
 16.12  subdivision 2, is amended to read: 
 16.13     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 16.14  district equals the formula allowance times the actual pupil 
 16.15  units for the school year.  The formula allowance for fiscal 
 16.16  years 1993 and 1994 is $3,050.  The formula allowance for fiscal 
 16.17  year 1995 and subsequent fiscal years is $3,150.  The formula 
 16.18  allowance for fiscal year 1996 is $3,245 and for fiscal year 
 16.19  1997 and thereafter $3,342.  
 16.20     Sec. 23.  [124D.01] [DEFINITIONS.] 
 16.21     Subdivision 1.  [APPLICABILITY.] For the purposes of this 
 16.22  chapter, the following terms have the meaning given them.  
 16.23     Subd. 2.  [COMMERCIAL-INDUSTRIAL PROPERTY.] 
 16.24  "Commercial-industrial property" means the following categories 
 16.25  of property as defined in section 273.13: 
 16.26     (1) class 3a and 3b property as defined in section 273.13, 
 16.27  subdivision 24; and 
 16.28     (2) class 5 property as defined in section 273.13, 
 16.29  subdivision 31. 
 16.30     Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
 16.31  commissioner of revenue. 
 16.32     Subd. 4.  [EQUALIZATION AID ACCOUNT.] "Equalization aid 
 16.33  account" means the account established in the general fund to 
 16.34  pay education equalization aids to school districts.  All 
 16.35  revenue received from the education equalization 
 16.36  commercial-industrial property tax must be deposited in this 
 17.1   account. 
 17.2      For fiscal years 1995 and 1996, "equalization aid" means 
 17.3   debt service equalization aid.  For fiscal years 1997 and later, 
 17.4   "equalization aid" means debt service equalization aid and 
 17.5   referendum equalization aid. 
 17.6      Sec. 24.  [124D.02] [EDUCATION EQUALIZATION TAX.] 
 17.7      Subdivision 1.  [EDUCATION EQUALIZATION TAX BASE.] The net 
 17.8   tax capacity of commercial-industrial property is the education 
 17.9   equalization tax base and is subject to the education 
 17.10  equalization tax rate as determined in subdivision 3. 
 17.11     Subd. 2.  [EDUCATION EQUALIZATION LEVY.] On or before 
 17.12  October 1 of each year, the commissioner shall determine the 
 17.13  total amount of the education equalization tax base within the 
 17.14  state for the previous assessment year.  The commissioner of 
 17.15  education shall calculate and report to the commissioner of 
 17.16  revenue the amount of revenue necessary to provide state aid to 
 17.17  fund the equalization aids specified in section 124D.01, 
 17.18  subdivision 4, for the following fiscal year.  The commissioner 
 17.19  shall determine each county's equalized education equalization 
 17.20  tax base by dividing the education equalization tax base, 
 17.21  excluding public utility property, but including railroad 
 17.22  property, by its most recently available countywide aggregate 
 17.23  commercial-industrial sales ratio determined under section 
 17.24  124.2131, and then adding that product to each county's public 
 17.25  utility part of the education equalization tax base.  Each 
 17.26  county's education equalization levy equals the statewide 
 17.27  education equalization levy determined in this subdivision 
 17.28  multiplied by the ratio of each county's equalized education 
 17.29  equalization tax base determined in this subdivision to the 
 17.30  total equalized education equalization tax base for all counties.
 17.31     Subd. 3.  [EDUCATION EQUALIZATION TAX RATE.] Before 
 17.32  December 2 of each year, the commissioner shall notify each 
 17.33  county auditor of the amount of education equalization tax to be 
 17.34  levied on commercial-industrial property located in the county 
 17.35  for taxes payable in the following year.  The county auditor 
 17.36  shall compute the education equalization tax rate for the county 
 18.1   by dividing the county's education equalization levy, as 
 18.2   certified by the commissioner, by the total education 
 18.3   equalization tax base within the county determined under 
 18.4   subdivision 1. 
 18.5      Sec. 25.  [124D.03] [PAYMENT.] 
 18.6      The amount of education equalization tax due on each parcel 
 18.7   of commercial-industrial property must be listed separately on 
 18.8   the property tax statement under section 276.04, subdivision 2.  
 18.9   Payment of the education equalization tax must be made at the 
 18.10  same time and in the same manner as all other property taxes 
 18.11  levied by all units of local government.  The county treasurer 
 18.12  shall pay the amounts collected from the education equalization 
 18.13  tax to the state treasurer.  Settlement between the county 
 18.14  treasurer and the state treasurer must be made at the same time 
 18.15  that distributions are made to local governmental units in 
 18.16  accordance with sections 276.09 to 276.111.  The funds payable 
 18.17  to the state treasurer must be deposited in the equalization aid 
 18.18  account in the general fund, and must be used only to pay 
 18.19  education equalization aids to school districts. 
 18.20     Sec. 26.  Minnesota Statutes 1994, section 125.1895, 
 18.21  subdivision 4, is amended to read: 
 18.22     Subd. 4.  [REIMBURSEMENT.] For purposes of revenue under 
 18.23  sections 124.321 124.32 and 124.322, the department of education 
 18.24  shall only reimburse school districts for the services of those 
 18.25  interpreters/transliterators who satisfy the standards of 
 18.26  competency under this section.  
 18.27     Sec. 27.  Minnesota Statutes 1994, section 275.065, 
 18.28  subdivision 3, is amended to read: 
 18.29     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
 18.30  county auditor shall prepare and the county treasurer shall 
 18.31  deliver after November 10 and on or before November 24 each 
 18.32  year, by first class mail to each taxpayer at the address listed 
 18.33  on the county's current year's assessment roll, a notice of 
 18.34  proposed property taxes and, in the case of a town, final 
 18.35  property taxes.  
 18.36     (b) The commissioner of revenue shall prescribe the form of 
 19.1   the notice. 
 19.2      (c) The notice must inform taxpayers that it contains the 
 19.3   amount of property taxes each taxing authority other than a town 
 19.4   proposes to collect for taxes payable the following year and, 
 19.5   for a town, the amount of its final levy.  It must clearly state 
 19.6   that each taxing authority, including regional library districts 
 19.7   established under section 134.201, and including the 
 19.8   metropolitan taxing districts as defined in paragraph (i), but 
 19.9   excluding all other special taxing districts and towns, will 
 19.10  hold a public meeting to receive public testimony on the 
 19.11  proposed budget and proposed or final property tax levy, or, in 
 19.12  case of a school district, on the current budget and proposed 
 19.13  property tax levy.  It must clearly state the time and place of 
 19.14  each taxing authority's meeting and an address where comments 
 19.15  will be received by mail.  The notice must include the estimated 
 19.16  percentage increase in Minnesota personal income, provided by 
 19.17  the commissioner of revenue under section 275.064, in a way to 
 19.18  facilitate comparison of the proposed budget and levy increases 
 19.19  with the increase in personal income.  For school districts, the 
 19.20  notice shall include the percentage of the operating budget that 
 19.21  is used for administration and the same figure for school 
 19.22  districts in the same school district size decile based on 
 19.23  pupils in the district.  The commissioner of education shall 
 19.24  provide this information to the county auditors based on the 
 19.25  most recent data available.  For 1993, the notice must clearly 
 19.26  state that each taxing authority holding a public meeting will 
 19.27  describe the increases or decreases of the total budget, 
 19.28  including employee and independent contractor compensation in 
 19.29  the prior year, current year, and the proposed budget year.  
 19.30     (d) The notice must state for each parcel: 
 19.31     (1) the market value of the property as determined under 
 19.32  section 273.11, and used for computing property taxes payable in 
 19.33  the following year and for taxes payable in the current year; 
 19.34  and, in the case of residential property, whether the property 
 19.35  is classified as homestead or nonhomestead.  The notice must 
 19.36  clearly inform taxpayers of the years to which the market values 
 20.1   apply and that the values are final values; 
 20.2      (2) by county, city or town, school district excess 
 20.3   referenda levy, remaining school district levy, regional library 
 20.4   district, if in existence, the total of the metropolitan special 
 20.5   taxing districts as defined in paragraph (i) and the sum of the 
 20.6   remaining special taxing districts, and as a total of the taxing 
 20.7   authorities, including all special taxing districts, the 
 20.8   proposed or, for a town, final net tax on the property for taxes 
 20.9   payable the following year and the actual tax for taxes payable 
 20.10  the current year.  For the purposes of this subdivision, "school 
 20.11  district excess referenda levy" means school district taxes for 
 20.12  operating purposes approved at referendums, including those 
 20.13  taxes based on net tax capacity as well as those based on market 
 20.14  value.  "School district excess referenda levy" does not include 
 20.15  school district taxes for capital expenditures approved at 
 20.16  referendums or school district taxes to pay for the debt service 
 20.17  on bonds approved at referenda.  In the case of the city of 
 20.18  Minneapolis, the levy for the Minneapolis library board and the 
 20.19  levy for Minneapolis park and recreation shall be listed 
 20.20  separately from the remaining amount of the city's levy.  In the 
 20.21  case of a parcel where tax increment or the fiscal disparities 
 20.22  areawide tax applies, the proposed tax levy on the captured 
 20.23  value or the proposed tax levy on the tax capacity subject to 
 20.24  the areawide tax must each be stated separately and not included 
 20.25  in the sum of the special taxing districts; and 
 20.26     (3) the increase or decrease in the amounts in clause (2) 
 20.27  from taxes payable in the current year to proposed or, for a 
 20.28  town, final taxes payable the following year, expressed as a 
 20.29  dollar amount and as a percentage. 
 20.30     (e) The notice must clearly state that the proposed or 
 20.31  final taxes do not include the following: 
 20.32     (1) special assessments; 
 20.33     (2) levies approved by the voters after the date the 
 20.34  proposed taxes are certified, including bond referenda, school 
 20.35  district levy referenda, and levy limit increase referenda; 
 20.36     (3) amounts necessary to pay cleanup or other costs due to 
 21.1   a natural disaster occurring after the date the proposed taxes 
 21.2   are certified; 
 21.3      (4) amounts necessary to pay tort judgments against the 
 21.4   taxing authority that become final after the date the proposed 
 21.5   taxes are certified; and 
 21.6      (5) the contamination tax imposed on properties which 
 21.7   received market value reductions for contamination. 
 21.8      (f) Except as provided in subdivision 7, failure of the 
 21.9   county auditor to prepare or the county treasurer to deliver the 
 21.10  notice as required in this section does not invalidate the 
 21.11  proposed or final tax levy or the taxes payable pursuant to the 
 21.12  tax levy. 
 21.13     (g) If the notice the taxpayer receives under this section 
 21.14  lists the property as nonhomestead and the homeowner provides 
 21.15  satisfactory documentation to the county assessor that the 
 21.16  property is owned and has been used as the owner's homestead 
 21.17  prior to June 1 of that year, the assessor shall reclassify the 
 21.18  property to homestead for taxes payable in the following year. 
 21.19     (h) In the case of class 4 residential property used as a 
 21.20  residence for lease or rental periods of 30 days or more, the 
 21.21  taxpayer must either: 
 21.22     (1) mail or deliver a copy of the notice of proposed 
 21.23  property taxes to each tenant, renter, or lessee; or 
 21.24     (2) post a copy of the notice in a conspicuous place on the 
 21.25  premises of the property.  
 21.26     (i) For purposes of this subdivision, subdivisions 5a and 
 21.27  6, "metropolitan special taxing districts" means the following 
 21.28  taxing districts in the seven-county metropolitan area that levy 
 21.29  a property tax for any of the specified purposes listed below: 
 21.30     (1) metropolitan council under section 473.132, 473.167, 
 21.31  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
 21.32     (2) metropolitan airports commission under section 473.667, 
 21.33  473.671, or 473.672; and 
 21.34     (3) metropolitan mosquito control commission under section 
 21.35  473.711. 
 21.36     For purposes of this section, any levies made by the 
 22.1   regional rail authorities in the county of Anoka, Carver, 
 22.2   Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
 22.3   398A shall be included with the appropriate county's levy and 
 22.4   shall be discussed at that county's public hearing. 
 22.5      The notice must be mailed or posted by the taxpayer by 
 22.6   November 27 or within three days of receipt of the notice, 
 22.7   whichever is later.  A taxpayer may notify the county treasurer 
 22.8   of the address of the taxpayer, agent, caretaker, or manager of 
 22.9   the premises to which the notice must be mailed in order to 
 22.10  fulfill the requirements of this paragraph. 
 22.11     Sec. 28.  [APPROPRIATIONS.] 
 22.12     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The following 
 22.13  amounts are appropriated from the general fund to the department 
 22.14  of education for the fiscal years indicated. 
 22.15     Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
 22.16  aid: 
 22.17       $.,...,...     .....     1996 
 22.18       $.,...,...     .....     1997 
 22.19     Subd. 3.  [SCHOOL DISTRICT COOPERATION REVENUE.] For school 
 22.20  district cooperation revenue: 
 22.21       $.,...,...     .....     1996 
 22.22       $.,...,...     .....     1997 
 22.23     Sec. 29.  [REPEALER.] 
 22.24     Minnesota Statutes 1994, sections 124.321; and 124.322, 
 22.25  subdivision 4, are repealed. 
 22.26     Sec. 30.  [EFFECTIVE DATE.] 
 22.27     Sections 1 to 29 are effective for revenue for the 
 22.28  1996-1997 and later school years.