1.1 	A bill for an act
1.2 	relating to education finance; providing that certain
1.3 	school district refunding bonds are eligible for
1.4 	payments from taconite production tax revenues;
1.5 	amending Laws 1996, chapter 412, article 5, section 24.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Laws 1996, chapter 412, article 5, section 24,
1.8 	is amended to read:

1.9 	Sec. 24. BONDS PAID FROM TACONITE PRODUCTION TAX
1.10 	REVENUES.
 1.11 		Subdivision 1.Refunding bonds. The appropriation of
1.12 	funds from the distribution of taconite production tax revenues
1.13 	to the taconite environmental protection tax fund and the
1.14 	northeast Minnesota economic protection fund made by Laws 1988,
1.15 	chapter 718, article 7, sections 62 and 63, Laws 1989, chapter
1.16 	329, article 5, section 20, Laws 1990, chapter 604, article 8,
1.17 	section 13, Laws 1992, chapter 499, article 5, section 29, ~~and~~
1.18 	~~by sections 18 to 20~~ Laws 1996, chapter 412, article 5, sections
1.19 	20 to 22, and Laws 2000, chapter 489, article 5, sections 24 to
1.20 	26, shall continue to apply to bonds issued under Minnesota
1.21 	Statutes, chapter 475, to refund bonds originally issued
1.22 	pursuant to those chapters.
1.23 		Subd. 2.Local payments. School districts that are
1.24 	required in Laws 1988, chapter 718, article 7, sections 62 and
1.25 	63, Laws 1989, chapter 329, article 5, section 20, Laws 1990,
2.1 	chapter 604, article 8, section 13, Laws 1992, chapter 499,
2.2 	article 5, section 29, ~~and by sections 18 to 20~~ Laws 1996,
2.3 	chapter 412, article 5, sections 20 to 22, and Laws 2000,
2.4 	chapter 489, article 5, sections 24 to 26, to impose levies to
2.5 	pay debt service on the bonds issued under those provisions to
2.6 	the extent the principal and interest on the bonds is not paid
2.7 	by distributions from the taconite environmental protection fund
2.8 	and the northeast Minnesota economic protection trust, may pay
2.9 	their portion of the principal and interest from any funds
2.10 	available to them.  To the extent a school district uses funds
2.11 	other than the proceeds of a property tax levy to pay its share
2.12 	of the principal and interest on the bonds, the requirement to
2.13 	impose a property tax to pay the local share does not apply to
2.14 	the school district.
2.15 	
EFFECTIVE DATE. This section is effective the day
2.16 	following final enactment.