1.1                          A bill for an act 
  1.2             relating to local government finance; modifying the 
  1.3             city local government aid formula and adjusting city 
  1.4             homestead and agricultural credit aid; providing for 
  1.5             state assumption of certain county costs; converting 
  1.6             the general education levy to a state tax; changing 
  1.7             property tax class rates; providing special education 
  1.8             cross-subsidy aid; appropriating money; amending 
  1.9             Minnesota Statutes 2000, sections 97A.065, subdivision 
  1.10            2; 126C.13, subdivision 4; 179A.101, subdivision 1; 
  1.11            179A.102, subdivision 6; 179A.103, subdivision 1; 
  1.12            273.13, subdivisions 24, 25, by adding a subdivision; 
  1.13            273.1382; 273.1398, subdivisions 1, 4a, by adding 
  1.14            subdivisions; 275.02; 275.065, subdivisions 1, 3; 
  1.15            276.04, subdivision 2; 276A.06, subdivision 3; 
  1.16            299D.03, subdivision 5; 357.021, subdivision 1a; 
  1.17            473.254, subdivision 5; 473F.08, subdivision 3; 
  1.18            477A.011, subdivisions 20, 27, 34, by adding 
  1.19            subdivisions; 477A.013, subdivisions 8, 9; 477A.03, 
  1.20            subdivision 2; 480.181, subdivision 1; 487.33, 
  1.21            subdivision 5; 574.34, subdivision 1; proposing coding 
  1.22            for new law in Minnesota Statutes, chapters 125A; 245; 
  1.23            473; repealing Minnesota Statutes 2000, sections 
  1.24            126C.13, subdivisions 1, 2, 3; 477A.011, subdivisions 
  1.25            35, 36, 37; 477A.03, subdivision 4. 
  1.26  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.27                             ARTICLE 1 
  1.28                          STATE AID REFORM 
  1.29     Section 1.  [245.775] [REIMBURSEMENT OF COUNTY FOR CERTAIN 
  1.30  OUT-OF-HOME PLACEMENTS.] 
  1.31     (a) The commissioner of human services shall reimburse a 
  1.32  county for the cost of out-of-home placement.  For purposes of 
  1.33  this section, "out-of-home placement" means the placement of a 
  1.34  child in a child caring institution licensed under Minnesota 
  1.35  Rules, parts 9545.0905 to 9545.1125 or in a group home licensed 
  2.1   under Minnesota Rules, parts 9545.14 to 9545.1500. 
  2.2      (b) The manner for making the reimbursement for costs under 
  2.3   paragraph (a) to the county is as follows: 
  2.4      (1) Beginning in July 2002, and annually thereafter, the 
  2.5   commissioner will forecast out-of-home placements for each 
  2.6   calendar year and make payments as follows: 
  2.7      (i) in July of each year, the commissioner will make a 
  2.8   payment to a county to cover 40 percent of the county's 
  2.9   anticipated nonfederal costs of out-of-home placements for that 
  2.10  calendar year; 
  2.11     (ii) in September of each year, the commissioner will make 
  2.12  an additional payment, if necessary, to a county so that this 
  2.13  payment and the payment in item (i) reflect the actual 
  2.14  expenditures by the county of the nonfederal costs of 
  2.15  out-of-home placements for that county for the period January 
  2.16  through June of that calendar year; 
  2.17     (iii) in December of each year, the commissioner will make 
  2.18  a payment to a county which, when added to the payments in items 
  2.19  (i) and (ii), reflects 90 percent of the county's anticipated 
  2.20  nonfederal costs of out-of-home placements for that calendar 
  2.21  year; and 
  2.22     (iv) in March of the calendar year following the payments 
  2.23  made in items (i) to (iii), the commissioner will settle up with 
  2.24  each county by making an additional payment to or recovering 
  2.25  money from the county as necessary to reconcile the net amount 
  2.26  of the payments received by the county under items (i) to (iii) 
  2.27  with the total reimbursement to be made to the county under 
  2.28  clause (2). 
  2.29     (2) the total reimbursement to the county shall be 100 
  2.30  percent of the actual expenditures by the county of the 
  2.31  nonfederal costs of out-of-home placements for the calendar year.
  2.32     <b>[EFFECTIVE DATE.]</b> This section is effective beginning with 
  2.33  out-of-home placement costs incurred in calendar year 2002. 
  2.34     Sec. 2.  Minnesota Statutes 2000, section 273.1398, 
  2.35  subdivision 1, is amended to read: 
  2.36     Subdivision 1.  [DEFINITIONS.] (a) In this section, the 
  3.1   terms defined in this subdivision have the meanings given them. 
  3.2      (b) "Unique taxing jurisdiction" means the geographic area 
  3.3   subject to the same set of local tax rates. 
  3.4      (c) "Previous net tax capacity" means the product of the 
  3.5   appropriate net class rates for the year previous to the year in 
  3.6   which the aid is payable, and estimated market values for the 
  3.7   assessment two years prior to that in which aid is payable.  
  3.8   "Total previous net tax capacity" means the previous net tax 
  3.9   capacities for all property within the unique taxing 
  3.10  jurisdiction.  The total previous net tax capacity shall be 
  3.11  reduced by the sum of (1) the unique taxing jurisdiction's 
  3.12  previous net tax capacity of commercial-industrial property as 
  3.13  defined in section 473F.02, subdivision 3, or 276A.01, 
  3.14  subdivision 3, multiplied by the ratio determined pursuant to 
  3.15  section 473F.08, subdivision 6, or 276A.06, subdivision 7, for 
  3.16  the municipality, as defined in section 473F.02, subdivision 8, 
  3.17  or 276A.01, subdivision 8, in which the unique taxing 
  3.18  jurisdiction is located, (2) the previous net tax capacity of 
  3.19  the captured value of tax increment financing districts as 
  3.20  defined in section 469.177, subdivision 2, and (3) the previous 
  3.21  net tax capacity of transmission lines deducted from a local 
  3.22  government's total net tax capacity under section 273.425.  
  3.23  Previous net tax capacity cannot be less than zero. 
  3.24     (d) "Equalized market values" are market values that have 
  3.25  been equalized by dividing the assessor's estimated market value 
  3.26  for the second year prior to that in which the aid is payable by 
  3.27  the assessment sales ratios determined by class in the 
  3.28  assessment sales ratio study conducted by the department of 
  3.29  revenue pursuant to section 127A.48 in the second year prior to 
  3.30  that in which the aid is payable.  The equalized market values 
  3.31  shall equal the unequalized market values divided by the 
  3.32  assessment sales ratio. 
  3.33     (e) "Equalized school levies" means the amounts levied for: 
  3.34     (1) general education under section 126C.13, subdivision 2; 
  3.35     (2) supplemental revenue under section 126C.10, subdivision 
  3.36  10; 
  4.1      (3) transition revenue under section 126C.10, subdivision 
  4.2   20; and 
  4.3      (4) referendum revenue under section 126C.17. 
  4.4      (f) "Current local tax rate" means the quotient derived by 
  4.5   dividing the taxes levied within a unique taxing jurisdiction 
  4.6   for taxes payable in the year prior to that for which aids are 
  4.7   being calculated by the total previous net tax capacity of the 
  4.8   unique taxing jurisdiction.  
  4.9      (g) For purposes of calculating and allocating homestead 
  4.10  and agricultural credit aid authorized pursuant to subdivision 2 
  4.11  and the disparity reduction aid authorized in subdivision 3, 
  4.12  "gross taxes levied on all properties," "gross taxes," or "taxes 
  4.13  levied" means the total net tax capacity based taxes levied on 
  4.14  all properties except that levied on the captured value of tax 
  4.15  increment districts as defined in section 469.177, subdivision 
  4.16  2, and that levied on the portion of commercial industrial 
  4.17  properties' assessed value or gross tax capacity, as defined in 
  4.18  section 473F.02, subdivision 3, subject to the areawide tax as 
  4.19  provided in section 473F.08, subdivision 6, in a unique taxing 
  4.20  jurisdiction.  "Gross taxes" are before any reduction for 
  4.21  disparity reduction aid but "taxes levied" are after any 
  4.22  reduction for disparity reduction aid.  Gross taxes levied or 
  4.23  taxes levied cannot be less than zero.  
  4.24     "Taxes levied" excludes equalized school levies. 
  4.25     (h) "Household adjustment factor" means the number of 
  4.26  households, for the year most recently determined as of July 1 
  4.27  in the aid calculation year, divided by the number of households 
  4.28  for the year immediately preceding the year for which the number 
  4.29  of households has most recently been determined as of July 1.  
  4.30  The household adjustment factor cannot be less than one.  
  4.31     (i) "Growth adjustment factor" means the household 
  4.32  adjustment factor in the case of counties.  In the case of 
  4.33  cities, towns, school districts, and special taxing districts, 
  4.34  the growth adjustment factor equals one.  The growth adjustment 
  4.35  factor cannot be less than one.  
  4.36     (j) "Homestead and agricultural credit base" means the 
  5.1   previous year's certified homestead and agricultural credit aid 
  5.2   determined under subdivision 2 less any permanent aid reduction 
  5.3   in the previous year to homestead and agricultural credit 
  5.4   aid plus any permanent increase in the previous year to 
  5.5   homestead and agricultural credit aid.  
  5.6      (k) "Net tax capacity adjustment" means (1) the tax base 
  5.7   differential defined in subdivision 1a, multiplied by (2) the 
  5.8   unique taxing jurisdiction's current local tax rate.  The net 
  5.9   tax capacity adjustment cannot be less than zero. 
  5.10     (l) "Fiscal disparity adjustment" means a taxing 
  5.11  jurisdiction's fiscal disparity distribution levy under section 
  5.12  473F.08, subdivision 3, clause (a), or 276A.06, subdivision 3, 
  5.13  clause (a), for taxes payable in the year prior to that for 
  5.14  which aids are being calculated, multiplied by the ratio of the 
  5.15  tax base differential percent referenced in subdivision 1a for 
  5.16  the highest class rate for class 3 property for taxes payable in 
  5.17  the year prior to that for which aids are being calculated to 
  5.18  the highest class rate for class 3 property for taxes payable in 
  5.19  the second prior year to that for which aids are being 
  5.20  calculated.  In the case of school districts, the fiscal 
  5.21  disparity distribution levy shall exclude that part of the levy 
  5.22  attributable to equalized school levies. 
  5.23     <b>[EFFECTIVE DATE.]</b> This section is effective for aids 
  5.24  payable in calendar year 2002 and thereafter. 
  5.25     Sec. 3.  Minnesota Statutes 2000, section 273.1398, is 
  5.26  amended by adding a subdivision to read: 
  5.27     Subd. 4b.  [AID ADJUSTMENT FOR 2002 CITY LOCAL GOVERNMENT 
  5.28  AID CHANGES.] Payments to a city under subdivision 2 or section 
  5.29  273.166 for calendar year 2002 are equal to (1) payments under 
  5.30  those sections in calendar year 2001 minus (2) the difference 
  5.31  between the amount the city is certified to receive in aid under 
  5.32  sections 477A.011 to 477A.014 in calendar year 2002 and what the 
  5.33  city would have received in calendar year 2002 under the formula 
  5.34  in Minnesota Statutes 2000, sections 477A.011 to 477A.014.  The 
  5.35  amount of HACA remaining after the offset may not be less than 
  5.36  zero. 
  6.1      <b>[EFFECTIVE DATE.]</b> This section is effective for aids 
  6.2   payable in calendar year 2002. 
  6.3      Sec. 4.  Minnesota Statutes 2000, section 273.1398, is 
  6.4   amended by adding a subdivision to read: 
  6.5      Subd. 4c.  [ADJUSTMENT FOR LOW-INCOME HOUSING 
  6.6   AID.] Payments to a city under subdivision 2 or section 273.166 
  6.7   for calendar year 2004 are permanently increased by the amount 
  6.8   certified to be paid to it in 2003 under section 477A.06. 
  6.9      <b>[EFFECTIVE DATE.]</b> This section is effective for aids 
  6.10  payable in calendar year 2004. 
  6.11     Sec. 5.  Minnesota Statutes 2000, section 273.1398, is 
  6.12  amended by adding a subdivision to read: 
  6.13     Subd. 4d.  [ADJUSTMENT FOR SELECTED CITIES.] Payments to a 
  6.14  city under subdivision 2 or section 273.166 shall be decreased 
  6.15  by $450,000 in calendar year 2009 if the city had an increased 
  6.16  city aid base for local government aid purposes in 2001 under 
  6.17  section 477A.011, subdivision 36, paragraph (f). 
  6.18     <b>[EFFECTIVE DATE.]</b> This section is effective for aids 
  6.19  payable in calendar years 2002 to 2008. 
  6.20     Sec. 6.  Minnesota Statutes 2000, section 273.1398, is 
  6.21  amended by adding a subdivision to read: 
  6.22     Subd. 4e.  [AID OFFSET FOR OUT-OF-HOME PLACEMENT 
  6.23  COSTS.] For aid payable in 2002, each county shall have its aid 
  6.24  under subdivision 2 permanently reduced by an amount equal to 
  6.25  the county's 2000 nonfederal expenditures for out-of-home 
  6.26  placements, as defined in section 245.775.  The counties shall 
  6.27  provide all information requested by the commissioner of human 
  6.28  services necessary to allow the commissioner to certify these 
  6.29  nonfederal costs to the commissioner of revenue by September 1, 
  6.30  2001. 
  6.31     <b>[EFFECTIVE DATE.]</b> This section is effective the day after 
  6.32  final enactment, for aids payable beginning in 2002. 
  6.33     Sec. 7.  Minnesota Statutes 2000, section 473.254, 
  6.34  subdivision 5, is amended to read: 
  6.35     Subd. 5.  [SOURCES OF FUNDS.] (a) The council shall credit 
  6.36  to the local housing incentives account any revenues derived 
  7.1   from municipalities under subdivision 4, paragraph (b), clause 
  7.2   (1). 
  7.3      (b) The council shall credit $1,000,000 of the proceeds of 
  7.4   solid waste bonds issued by the council under Minnesota 
  7.5   Statutes, section 473.831, before its repeal, to the local 
  7.6   housing incentives account in the metropolitan livable 
  7.7   communities fund.  In 1998 and each year thereafter, the council 
  7.8   shall credit $1,000,000 of the revenues generated by the levy 
  7.9   authorized in section 473.249 to the local housing incentives 
  7.10  account. 
  7.11     (c) In 1997, and each year thereafter, the council shall 
  7.12  transfer $500,000 from the livable communities demonstration 
  7.13  account to the local housing incentives account.  
  7.14     (d) All payments received by the council under section 
  7.15  473.2545 shall be credited to the local housing incentives 
  7.16  account. 
  7.17     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
  7.18     Sec. 8.  [473.2545] [AID REDUCTION FOR NONPARTICIPATION IN 
  7.19  THE LOCAL HOUSING INCENTIVES PROGRAM.] 
  7.20     (a) Beginning with aids payable in 2002 and thereafter, a 
  7.21  city electing not to participate in the local housing incentive 
  7.22  account program under section 473.254, subdivision 1, by 
  7.23  November 15 in the year prior to the year in which the aid is 
  7.24  paid, shall have its local government aid under sections 
  7.25  477A.011 to 477A.014 reduced as provided for in paragraphs (b) 
  7.26  and (c).  This reduction will be made prior to any reduction 
  7.27  required under section 273.1399. 
  7.28     (b) A city aid reduction shall be equal to a percentage of 
  7.29  the difference between (1) the sum of the aid certified to be 
  7.30  paid to the city under sections 273.1398 and 477A.013, 
  7.31  subdivision 9, in the year in which the aid is to be paid, and 
  7.32  (2) the sum of the aid certified to be paid to the city in 
  7.33  calendar year 1999 under sections 273.1398 and 477A.013, 
  7.34  subdivision 9. 
  7.35     (c) The percentage used in the reduction calculation shall 
  7.36  be equal to ten percent in the first year that a city is subject 
  8.1   to the reduction under this section.  The percentage shall not 
  8.2   exceed 100 percent. 
  8.3      (d) The sum of all aid reductions under this section shall 
  8.4   be paid to the metropolitan council to be deposited in the local 
  8.5   housing incentives account in section 473.254 for distribution 
  8.6   under that program. 
  8.7      <b>[EFFECTIVE DATE.]</b> This section is effective beginning with 
  8.8   aids payable in 2002 and thereafter. 
  8.9      Sec. 9.  Minnesota Statutes 2000, section 477A.011, 
  8.10  subdivision 27, is amended to read: 
  8.11     Subd. 27.  [REVENUE BASE.] "Revenue base" means the amount 
  8.12  levied for taxes payable in the previous year, including the 
  8.13  levy on the fiscal disparity distribution under section 276A.06, 
  8.14  subdivision 3, paragraph (a), or 473F.08, subdivision 3, 
  8.15  paragraph (a), and before reduction for ~~the homestead and~~ 
  8.16  ~~agricultural credit aid under section 273.1398, subdivision 2,~~ 
  8.17  ~~equalization aid under section 477A.013, subdivision 5, and~~ 
  8.18  disparity reduction aid under section 273.1398, subdivision 3; 
  8.19  plus the originally certified local government aid in the 
  8.20  previous year under sections 477A.011 and 477A.013; the local 
  8.21  performance aid in the previous year under section 477A.05; the 
  8.22  homestead and agricultural credit aid in the previous year under 
  8.23  section 273.1398, subdivision 2; and the taconite aids received 
  8.24  in the previous year under sections 298.28 and 298.282. 
  8.25     <b>[EFFECTIVE DATE.]</b> This section is effective for aids 
  8.26  payable in calendar year 2002 and thereafter. 
  8.27     Sec. 10.  Minnesota Statutes 2000, section 477A.011, is 
  8.28  amended by adding a subdivision to read: 
  8.29     Subd. 27a.  [REVENUE BASE PER CAPITA.] "Revenue base per 
  8.30  capita" means a city's revenue base divided by the city's 
  8.31  population for two calendar years prior to the payable year of 
  8.32  the aids and levies used in calculating the revenue base. 
  8.33     <b>[EFFECTIVE DATE.]</b> This section is effective for aids 
  8.34  payable in calendar year 2002 and thereafter. 
  8.35     Sec. 11.  Minnesota Statutes 2000, section 477A.011, is 
  8.36  amending by adding a subdivision to read: 
  9.1      Subd. 27b.  [AVERAGE SMALL CITY PER CAPITA REVENUE 
  9.2   BASE.] "Average small city per capita revenue base" means the 
  9.3   sum of the revenue base per capita for all cities with a 
  9.4   population of less than 2,500 divided by the number of cities 
  9.5   with a population less than 2,500. 
  9.6      <b>[EFFECTIVE DATE.]</b> This section is effective for aids 
  9.7   payable in calendar year 2002 and thereafter. 
  9.8      Sec. 12.  Minnesota Statutes 2000, section 477A.011, 
  9.9   subdivision 34, is amended to read: 
  9.10     Subd. 34.  [PER CAPITA CITY REVENUE NEED.] (a) For a city 
  9.11  with a population equal to or greater than 2,500, "per capita 
  9.12  city revenue need" is the sum of (1) ~~3.462312~~ 5.57535 times the 
  9.13  pre-1940 housing percentage; plus (2) ~~2.093826~~ 2.72775 times the 
  9.14  commercial industrial percentage; plus (3) ~~6.862552~~ 16.44686 
  9.15  times the population decline percentage; plus (4) ~~.00026 times~~ 
  9.16  ~~the city population; plus (5) 152.0141~~ 189.103. 
  9.17     (b) For a city with a population less than 2,500, ~~"city~~ 
  9.18  ~~revenue need" is the sum of (1) 1.795919 times the pre-1940~~ 
  9.19  ~~housing percentage; plus (2) 1.562138 times the commercial~~ 
  9.20  ~~industrial percentage; plus (3) 4.177568 times the population~~ 
  9.21  ~~decline percentage; plus (4) 1.04013 times the transformed~~ 
  9.22  ~~population; minus (5) 107.475~~ "per capita city revenue need" is 
  9.23  equal to the lesser of (1) the sum of the city's revenue base 
  9.24  per capita for the four most recently available calendar years 
  9.25  divided by four, or (2) the average small city per capita 
  9.26  revenue base plus two-thirds of the amount of that city's 
  9.27  average revenue base per capita for the last four years that 
  9.28  exceeds the average small city per capita revenue base. 
  9.29     ~~(c) The city revenue need cannot be less than zero.~~ 
  9.30     ~~(d) For calendar year 1998 and subsequent years, the city~~ 
  9.31  ~~revenue need for a city, as determined in paragraphs (a) to (c),~~ 
  9.32  ~~is multiplied by the ratio of the annual implicit price deflator~~ 
  9.33  ~~for government consumption expenditures and gross investment for~~ 
  9.34  ~~state and local governments as prepared by the United States~~ 
  9.35  ~~Department of Commerce, for the most recently available year to~~ 
  9.36  ~~the 1993 implicit price deflator for state and local government~~ 
 10.1   ~~purchases.~~ 
 10.2      <b>[EFFECTIVE DATE.]</b> This section is effective for aids 
 10.3   payable in calendar year 2002 and thereafter. 
 10.4      Sec. 13.  Minnesota Statutes 2000, section 477A.013, 
 10.5   subdivision 8, is amended to read: 
 10.6      Subd. 8.  [CITY FORMULA AID.] In calendar year ~~1994~~ 2002 
 10.7   and subsequent years, the formula aid for a city is equal to the 
 10.8   need increase percentage multiplied by the difference between 
 10.9   (1) the per capita city's revenue need multiplied by its 
 10.10  population, and (2) 25 percent of the city's net tax capacity 
 10.11  ~~multiplied by the tax effort rate~~.  No city may have a formula 
 10.12  aid amount less than zero.  The need increase percentage must be 
 10.13  the same for all cities.  
 10.14     ~~Notwithstanding the prior sentence, in 1995 only, the need~~ 
 10.15  ~~increase percentage for a city shall be twice the need increase~~ 
 10.16  ~~percentage applicable to other cities if:~~  
 10.17     ~~(1) the city, in 1992 or 1993, transferred an amount from~~ 
 10.18  ~~governmental funds to their sewer and water fund, and~~ 
 10.19     ~~(2) the amount transferred exceeded their net levy for~~ 
 10.20  ~~taxes payable in the year in which the transfer occurred.~~ 
 10.21     ~~The applicable need increase percentage or percentages must~~ 
 10.22  ~~be calculated by the department of revenue so that the total of~~ 
 10.23  ~~the aid under subdivision 9 equals the total amount available~~ 
 10.24  ~~for aid under section 477A.03.~~  
 10.25     <b>[EFFECTIVE DATE.]</b> This section is effective for aids 
 10.26  payable in calendar year 2002 and thereafter. 
 10.27     Sec. 14.  Minnesota Statutes 2000, section 477A.013, 
 10.28  subdivision 9, is amended to read: 
 10.29     Subd. 9.  [CITY AID DISTRIBUTION.] ~~(a)~~ In calendar year 
 10.30  ~~1994 and thereafter, each city shall receive an aid distribution~~ 
 10.31  ~~equal to the sum of (1) the city formula aid under subdivision~~ 
 10.32  ~~8, and (2) its city aid base~~ 2002 and thereafter, each city 
 10.33  shall receive an aid distribution equal to its formula aid under 
 10.34  subdivision 8. 
 10.35     ~~(b) The percentage increase for a first class city in~~ 
 10.36  ~~calendar year 1995 and thereafter shall not exceed the~~ 
 11.1   ~~percentage increase in the sum of the aid to all cities under~~ 
 11.2   ~~this section in the current calendar year compared to the sum of~~ 
 11.3   ~~the aid to all cities in the previous year.~~ 
 11.4      ~~(c) The total aid for any city, except a first class city,~~ 
 11.5   ~~shall not exceed the sum of (1) ten percent of the city's net~~ 
 11.6   ~~levy for the year prior to the aid distribution plus (2) its~~ 
 11.7   ~~total aid in the previous year before any increases or decreases~~ 
 11.8   ~~under sections 16A.711, subdivision 5, and 477A.0132.~~ 
 11.9      ~~(d) Notwithstanding paragraph (c), in 1995 only, for cities~~ 
 11.10  ~~which in 1992 or 1993 transferred an amount from governmental~~ 
 11.11  ~~funds to their sewer and water fund in an amount greater than~~ 
 11.12  ~~their net levy for taxes payable in the year in which the~~ 
 11.13  ~~transfer occurred, the total aid shall not exceed the sum of (1)~~ 
 11.14  ~~20 percent of the city's net levy for the year prior to the aid~~ 
 11.15  ~~distribution plus (2) its total aid in the previous year before~~ 
 11.16  ~~any increases or decreases under sections 16A.711, subdivision~~ 
 11.17  ~~5, and 477A.0132~~. 
 11.18     <b>[EFFECTIVE DATE.]</b> This section is effective for aids 
 11.19  payable in calendar year 2002 and thereafter. 
 11.20     Sec. 15.  Minnesota Statutes 2000, section 477A.03, 
 11.21  subdivision 2, is amended to read: 
 11.22     Subd. 2.  [ANNUAL APPROPRIATION.] (a) A sum sufficient to 
 11.23  discharge the duties imposed by sections 477A.011 to 477A.014 is 
 11.24  annually appropriated from the general fund to the commissioner 
 11.25  of revenue.  
 11.26     (b) Aid payments to counties under section 477A.0121 are 
 11.27  limited to $20,265,000 in 1996.  Aid payments to counties under 
 11.28  section 477A.0121 are limited to $27,571,625 in 1997.  For aid 
 11.29  payable in 1998 and thereafter, the total aids paid under 
 11.30  section 477A.0121 are the amounts certified to be paid in the 
 11.31  previous year, adjusted for inflation as provided under 
 11.32  subdivision 3. 
 11.33     (c)(i) For aids payable in 1998 and thereafter, the total 
 11.34  aids paid to counties under section 477A.0122 are the amounts 
 11.35  certified to be paid in the previous year, adjusted for 
 11.36  inflation as provided under subdivision 3. 
 12.1      (ii) Aid payments to counties under section 477A.0122 in 
 12.2   2000 are further increased by an additional $20,000,000 in 2000. 
 12.3      (d) Aid payments to cities in 1999 under section 477A.013, 
 12.4   subdivision 9, are limited to $380,565,489.  For aids payable in 
 12.5   2000, the total aids paid under section 477A.013, subdivision 9, 
 12.6   are the amounts certified to be paid in the previous year, 
 12.7   adjusted for inflation as provided in subdivision 3, and 
 12.8   increased by the amount necessary to effectuate Laws 1999, 
 12.9   chapter 243, article 5, section 48, paragraph (b).  For aids 
 12.10  payable in 2001 ~~through 2003~~, the total aids paid under section 
 12.11  477A.013, subdivision 9, are the amounts certified to be paid in 
 12.12  the previous year, adjusted ~~for inflation~~ as provided under 
 12.13  subdivision 3.  For aids payable in ~~2004~~ 2002, the total aids 
 12.14  paid under section 477A.013, subdivision 9, are ~~the amounts~~ 
 12.15  ~~certified to be paid in the previous year, adjusted for~~ 
 12.16  ~~inflation as provided under subdivision 3, and increased by the~~ 
 12.17  ~~amount certified to be paid in 2003 under section~~ 
 12.18  ~~477A.06~~ limited to $533,000,000.  For aids payable in ~~2005~~ 2003 
 12.19  and thereafter, the total aids paid under section 477A.013, 
 12.20  subdivision 9, are the amounts certified to be paid in the 
 12.21  previous year, adjusted for inflation as provided under 
 12.22  subdivision 3.  The additional amount authorized under 
 12.23  subdivision 4 is not included when calculating the appropriation 
 12.24  limits under this paragraph. 
 12.25     <b>[EFFECTIVE DATE.]</b> This section is effective for aids 
 12.26  payable in calendar year 2002 and thereafter. 
 12.27     Sec. 16.  [REPEALER.] 
 12.28     Minnesota Statutes 2000, sections 477A.011, subdivisions 
 12.29  35, 36, and 37; and 477A.03, subdivision 4, are repealed. 
 12.30     <b>[EFFECTIVE DATE.]</b> This section is effective for aids 
 12.31  payable in calendar year 2002 and thereafter. 
 12.32                             ARTICLE 2 
 12.33                      EDUCATION FINANCE REFORM 
 12.34     Section 1.  [125A.795] [SPECIAL EDUCATION CROSS-SUBSIDY 
 12.35  AID.] 
 12.36     For fiscal year 2002 and later, a school district shall 
 13.1   receive an amount of aid equal to the district's unfunded 
 13.2   special education costs that have been cross-subsidized by the 
 13.3   district's general education revenue, identified as the net 
 13.4   cross-subsidy, as documented by the most recent report to the 
 13.5   commissioner under section 123B.143, subdivision 1, clause (5). 
 13.6      <b>[EFFECTIVE DATE.]</b> This section is effective for fiscal year 
 13.7   2002 and thereafter. 
 13.8      Sec. 2.  Minnesota Statutes 2000, section 126C.13, 
 13.9   subdivision 4, is amended to read: 
 13.10     Subd. 4.  [GENERAL EDUCATION AID.] A district's general 
 13.11  education aid is the sum of the following amounts:  
 13.12     (1) ~~the product of (i) the difference between the~~ general 
 13.13  education revenue, excluding transition revenue and supplemental 
 13.14  revenue~~, and the general education levy, times (ii) the ratio of~~ 
 13.15  ~~the actual amount levied to the permitted levy~~; 
 13.16     (2) transition aid according to section 126C.10, 
 13.17  subdivision 22; 
 13.18     (3) supplemental aid according to section 127A.49; 
 13.19     (4) shared time aid according to section 126C.01, 
 13.20  subdivision 7; and 
 13.21     (5) referendum aid according to section 126C.17. 
 13.22     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
 13.23  payable in 2002 and thereafter.  
 13.24     Sec. 3.  Minnesota Statutes 2000, section 273.1382, is 
 13.25  amended to read: 
 13.26     273.1382 [EDUCATION HOMESTEAD CREDIT; EDUCATION 
 13.27  AGRICULTURAL CREDIT.] 
 13.28     Subdivision 1.  [EDUCATION CREDIT TAX RATE.] Each year, the 
 13.29  respective county auditors shall determine the ~~initial~~ tax rate 
 13.30  for each ~~school district~~ county for the general education levy 
 13.31  certified under section ~~126C.13, subdivision 2 or 3~~ 275.02, 
 13.32  subdivision 1.  That rate ~~plus the school district's education~~ 
 13.33  ~~homestead credit tax rate adjustment under section 275.08,~~ 
 13.34  ~~subdivision 1e,~~ shall be the general education credit tax rate 
 13.35  for the ~~district~~ county.  
 13.36     Subd. 1a.  [EDUCATION HOMESTEAD CREDIT.] Each county 
 14.1   auditor shall determine a general education homestead credit for 
 14.2   each homestead within the county equal to ~~66.2 percent for taxes~~ 
 14.3   ~~payable in 1999 and 83 percent for taxes payable in 2000 and~~ 
 14.4   ~~thereafter of~~ the education credit tax rate times the net tax 
 14.5   capacity of the homestead for the taxes payable year.  The 
 14.6   amount of general education homestead credit for a homestead may 
 14.7   not exceed ~~$320 for taxes payable in 1999 and~~ $390 ~~for taxes~~ 
 14.8   ~~payable in 2000 and thereafter~~.  In the case of an agricultural 
 14.9   homestead, only the net tax capacity of the house, garage, and 
 14.10  surrounding one acre of land shall be used in determining the 
 14.11  property's education homestead credit. 
 14.12     Subd. 1b.  [EDUCATION AGRICULTURAL CREDIT.] Property 
 14.13  classified as class 2a agricultural homestead or class 2b 
 14.14  agricultural nonhomestead or timberland is eligible for 
 14.15  education agricultural credit.  The credit is equal to ~~70~~ 85 
 14.16  percent, in the case of agricultural homestead property up to 
 14.17  $600,000 in market value, or ~~63~~ 78 percent, in the case of all 
 14.18  other agricultural property or timberland, of the property's net 
 14.19  tax capacity times the education credit tax rate determined in 
 14.20  subdivision 1.  The portion of class 2a property consisting of 
 14.21  the house, garage, and surrounding one acre of land is not 
 14.22  eligible for the credit under this subdivision, nor does its 
 14.23  market value count towards the valuation threshold contained in 
 14.24  this subdivision. 
 14.25     Subd. 2.  [CREDIT ~~REIMBURSEMENTS~~ VERIFICATION.] ~~(a)~~ The 
 14.26  commissioner of revenue shall ~~determine~~ verify the tax 
 14.27  reductions allowed under this section for each taxes payable 
 14.28  year, ~~and for each school district~~ based upon a review of the 
 14.29  abstracts of tax lists submitted by the county auditors under 
 14.30  section 275.29, and from any other information which the 
 14.31  commissioner deems relevant.  ~~The commissioner of revenue shall~~ 
 14.32  ~~generally compute the tax reductions at the unique taxing~~ 
 14.33  ~~jurisdiction level, however the commissioner may compute the tax~~ 
 14.34  ~~reductions at a higher geographic level if that would have a~~ 
 14.35  ~~negligible impact, or if changes in the composition of unique~~ 
 14.36  ~~taxing jurisdictions do not permit computation at the unique~~ 
 15.1   ~~taxing jurisdiction level.  The commissioner's determinations~~ 
 15.2   ~~under this paragraph are not rules.~~ 
 15.3      ~~(b) The commissioner of revenue shall certify the total of~~ 
 15.4   ~~the tax reductions granted under this section for each taxes~~ 
 15.5   ~~payable year within each school district to the commissioner of~~ 
 15.6   ~~children, families, and learning after July 1 and on or before~~ 
 15.7   ~~August 1 of the taxes payable year.  The commissioner of~~ 
 15.8   ~~children, families, and learning shall reimburse each affected~~ 
 15.9   ~~school district for the amount of the property tax reductions~~ 
 15.10  ~~allowed under this section as provided in section 273.1392.  The~~ 
 15.11  ~~commissioner of children, families, and learning shall treat the~~ 
 15.12  ~~reimbursement payments as entitlements for the same state fiscal~~ 
 15.13  ~~year as certified, including with each district's initial~~ 
 15.14  ~~payment all amounts that would have been paid up to that date,~~ 
 15.15  ~~computed as if 90 percent of the annual reimbursement amount for~~ 
 15.16  ~~the district were being paid one-twelfth in each month of the~~ 
 15.17  ~~fiscal year.~~  
 15.18     ~~Subd. 3.  [APPROPRIATION.] An amount sufficient to make the~~ 
 15.19  ~~payments required by this section is annually appropriated from~~ 
 15.20  ~~the general fund to the commissioner of children, families, and~~ 
 15.21  ~~learning.~~  
 15.22     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
 15.23  payable in 2002 and subsequent years. 
 15.24     Sec. 4.  Minnesota Statutes 2000, section 275.02, is 
 15.25  amended to read: 
 15.26     275.02 [STATE ~~LEVY, EXCEPTIONS; CERTIFICATION OF~~ LEVIES AND 
 15.27  TAX ~~RATE~~ RATES.] 
 15.28     Subdivision 1.  [GENERAL EDUCATION LEVY.] The state general 
 15.29  education tax shall be levied on all taxable property in the 
 15.30  state.  The ~~rate of the tax~~ commissioner of revenue shall 
 15.31  determine the rate of tax necessary to raise $1,000,000,000 for 
 15.32  taxes payable in 2002 and subsequent years based upon each 
 15.33  county's adjusted net tax capacity, as determined under section 
 15.34  127A.48.  A county's adjusted net tax capacity shall be 
 15.35  determined without regard to chapter 276A or 473F.  Each 
 15.36  county's share of the general education levy shall be certified 
 16.1   by the ~~state auditor~~ commissioner of revenue to ~~each~~ the county 
 16.2   auditor on or before November ~~15~~ 1 annually.  The tax shall be 
 16.3   levied against the net tax capacity of all taxable property 
 16.4   within the county at a uniform rate.  The tax under this 
 16.5   subdivision must be treated as a local tax rate for purposes of 
 16.6   section 469.177. 
 16.7      Subd. 2.  [LEVY FOR BONDED DEBT.] The state levy under 
 16.8   subdivision 1 is in addition to any state levy certified by the 
 16.9   state auditor under article XI of the Minnesota Constitution.  A 
 16.10  levy certified by the state auditor under article XI must be 
 16.11  certified to each county auditor by November 1 for taxes payable 
 16.12  in the following year and shall be applied against the net tax 
 16.13  capacity of all taxable property in the state.  The tax under 
 16.14  this subdivision is not treated as a local tax rate under 
 16.15  section 469.177. 
 16.16     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
 16.17  payable in 2002 and subsequent years. 
 16.18     Sec. 5.  Minnesota Statutes 2000, section 275.065, 
 16.19  subdivision 1, is amended to read: 
 16.20     Subdivision 1.  [PROPOSED LEVY.] (a) Notwithstanding any 
 16.21  law or charter to the contrary, on or before September 15, each 
 16.22  taxing authority, other than a school district, and including 
 16.23  the state for the general education levy, shall adopt a proposed 
 16.24  budget and shall certify to the county auditor the proposed or, 
 16.25  in the case of a town, the final property tax levy for taxes 
 16.26  payable in the following year. 
 16.27     (b) On or before September 30, each school district shall 
 16.28  certify to the county auditor the proposed property tax levy for 
 16.29  taxes payable in the following year.  The school district shall 
 16.30  certify the proposed levy as: 
 16.31     (1) ~~the state determined school levy amount as prescribed~~ 
 16.32  ~~under section 126C.13, subdivision 2;~~ 
 16.33     ~~(2)~~ voter approved referendum and debt levies; and 
 16.34     ~~(3)~~ (2) the sum of the remaining school levies, or the 
 16.35  maximum levy limitation certified by the commissioner of 
 16.36  children, families, and learning according to section 126C.48, 
 17.1   subdivision 1, less the amounts levied under ~~clauses~~ 
 17.2   clause (1) ~~and (2)~~. 
 17.3      (c) If the board of estimate and taxation or any similar 
 17.4   board that establishes maximum tax levies for taxing 
 17.5   jurisdictions within a first class city certifies the maximum 
 17.6   property tax levies for funds under its jurisdiction by charter 
 17.7   to the county auditor by September 15, the city shall be deemed 
 17.8   to have certified its levies for those taxing jurisdictions. 
 17.9      (d) For purposes of this section, "taxing authority" 
 17.10  includes all home rule and statutory cities, towns, counties, 
 17.11  school districts, and special taxing districts as defined in 
 17.12  section 275.066.  Intermediate school districts that levy a tax 
 17.13  under chapter 124 or 136D, joint powers boards established under 
 17.14  sections 123A.44 to 123A.446, and common school districts No. 
 17.15  323, Franconia, and No. 815, Prinsburg, are also special taxing 
 17.16  districts for purposes of this section.  
 17.17     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
 17.18  payable in 2002 and subsequent years. 
 17.19     Sec. 6.  Minnesota Statutes 2000, section 275.065, 
 17.20  subdivision 3, is amended to read: 
 17.21     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
 17.22  county auditor shall prepare and the county treasurer shall 
 17.23  deliver after November 10 and on or before November 24 each 
 17.24  year, by first class mail to each taxpayer at the address listed 
 17.25  on the county's current year's assessment roll, a notice of 
 17.26  proposed property taxes.  
 17.27     (b) The commissioner of revenue shall prescribe the form of 
 17.28  the notice.  
 17.29     (c) The notice must inform taxpayers that it contains the 
 17.30  amount of property taxes each taxing authority proposes to 
 17.31  collect for taxes payable the following year.  In the case of a 
 17.32  town, ~~or in the case of the state determined portion of the~~ 
 17.33  ~~school district levy,~~ the final tax amount will be its proposed 
 17.34  tax.  In the case of taxing authorities required to hold a 
 17.35  public meeting under subdivision 6, the notice must clearly 
 17.36  state that each taxing authority, including regional library 
 18.1   districts established under section 134.201, and including the 
 18.2   metropolitan taxing districts as defined in paragraph (i), but 
 18.3   excluding all other special taxing districts and towns, will 
 18.4   hold a public meeting to receive public testimony on the 
 18.5   proposed budget and proposed or final property tax levy, or, in 
 18.6   case of a school district, on the current budget and proposed 
 18.7   property tax levy.  It must clearly state the time and place of 
 18.8   each taxing authority's meeting and an address where comments 
 18.9   will be received by mail.  
 18.10     (d) The notice must state for each parcel: 
 18.11     (1) the market value of the property as determined under 
 18.12  section 273.11, and used for computing property taxes payable in 
 18.13  the following year and for taxes payable in the current year as 
 18.14  each appears in the records of the county assessor on November 1 
 18.15  of the current year; and, in the case of residential property, 
 18.16  whether the property is classified as homestead or 
 18.17  nonhomestead.  The notice must clearly inform taxpayers of the 
 18.18  years to which the market values apply and that the values are 
 18.19  final values; 
 18.20     (2) the items listed below, shown separately by county, 
 18.21  city or town, state ~~determined school~~ general education tax net 
 18.22  of the education homestead credit and education agricultural 
 18.23  credit under section 273.1382, voter approved school levy, other 
 18.24  local school levy, and the sum of the special taxing districts, 
 18.25  and as a total of all taxing authorities:  
 18.26     (i) the actual tax for taxes payable in the current year; 
 18.27     (ii) the tax change due to spending factors, defined as the 
 18.28  proposed tax minus the constant spending tax amount; 
 18.29     (iii) the tax change due to other factors, defined as the 
 18.30  constant spending tax amount minus the actual current year tax; 
 18.31  and 
 18.32     (iv) the proposed tax amount net of credits. 
 18.33     In the case of a town or the state ~~determined school~~ 
 18.34  general education tax, the final tax shall also be its proposed 
 18.35  tax unless the town changes its levy at a special town meeting 
 18.36  under section 365.52.  If a school district has certified under 
 19.1   section 126C.17, subdivision 9, that a referendum will be held 
 19.2   in the school district at the November general election, the 
 19.3   county auditor must note next to the school district's proposed 
 19.4   amount that a referendum is pending and that, if approved by the 
 19.5   voters, the tax amount may be higher than shown on the notice.  
 19.6   In the case of the city of Minneapolis, the levy for the 
 19.7   Minneapolis library board and the levy for Minneapolis park and 
 19.8   recreation shall be listed separately from the remaining amount 
 19.9   of the city's levy.  In the case of a parcel where tax increment 
 19.10  or the fiscal disparities areawide tax under chapter 276A or 
 19.11  473F applies, the proposed tax levy on the captured value or the 
 19.12  proposed tax levy on the tax capacity subject to the areawide 
 19.13  tax must each be stated separately and not included in the sum 
 19.14  of the special taxing districts; and 
 19.15     (3) the increase or decrease between the total taxes 
 19.16  payable in the current year and the total proposed taxes, 
 19.17  expressed as a percentage. 
 19.18     For purposes of this section, the amount of the tax on 
 19.19  homesteads qualifying under the senior citizens' property tax 
 19.20  deferral program under chapter 290B is the total amount of 
 19.21  property tax before subtraction of the deferred property tax 
 19.22  amount. 
 19.23     (e) The notice must clearly state that the proposed or 
 19.24  final taxes do not include the following: 
 19.25     (1) special assessments; 
 19.26     (2) levies approved by the voters after the date the 
 19.27  proposed taxes are certified, including bond referenda, school 
 19.28  district levy referenda, and levy limit increase referenda; 
 19.29     (3) amounts necessary to pay cleanup or other costs due to 
 19.30  a natural disaster occurring after the date the proposed taxes 
 19.31  are certified; 
 19.32     (4) amounts necessary to pay tort judgments against the 
 19.33  taxing authority that become final after the date the proposed 
 19.34  taxes are certified; and 
 19.35     (5) the contamination tax imposed on properties which 
 19.36  received market value reductions for contamination. 
 20.1      (f) Except as provided in subdivision 7, failure of the 
 20.2   county auditor to prepare or the county treasurer to deliver the 
 20.3   notice as required in this section does not invalidate the 
 20.4   proposed or final tax levy or the taxes payable pursuant to the 
 20.5   tax levy. 
 20.6      (g) If the notice the taxpayer receives under this section 
 20.7   lists the property as nonhomestead, and satisfactory 
 20.8   documentation is provided to the county assessor by the 
 20.9   applicable deadline, and the property qualifies for the 
 20.10  homestead classification in that assessment year, the assessor 
 20.11  shall reclassify the property to homestead for taxes payable in 
 20.12  the following year. 
 20.13     (h) In the case of class 4 residential property used as a 
 20.14  residence for lease or rental periods of 30 days or more, the 
 20.15  taxpayer must either: 
 20.16     (1) mail or deliver a copy of the notice of proposed 
 20.17  property taxes to each tenant, renter, or lessee; or 
 20.18     (2) post a copy of the notice in a conspicuous place on the 
 20.19  premises of the property.  
 20.20     The notice must be mailed or posted by the taxpayer by 
 20.21  November 27 or within three days of receipt of the notice, 
 20.22  whichever is later.  A taxpayer may notify the county treasurer 
 20.23  of the address of the taxpayer, agent, caretaker, or manager of 
 20.24  the premises to which the notice must be mailed in order to 
 20.25  fulfill the requirements of this paragraph. 
 20.26     (i) For purposes of this subdivision, subdivisions 5a and 
 20.27  6, "metropolitan special taxing districts" means the following 
 20.28  taxing districts in the seven-county metropolitan area that levy 
 20.29  a property tax for any of the specified purposes listed below: 
 20.30     (1) metropolitan council under section 473.132, 473.167, 
 20.31  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
 20.32     (2) metropolitan airports commission under section 473.667, 
 20.33  473.671, or 473.672; and 
 20.34     (3) metropolitan mosquito control commission under section 
 20.35  473.711. 
 20.36     For purposes of this section, any levies made by the 
 21.1   regional rail authorities in the county of Anoka, Carver, 
 21.2   Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
 21.3   398A shall be included with the appropriate county's levy and 
 21.4   shall be discussed at that county's public hearing. 
 21.5      (j) If a statutory or home rule charter city or a town has 
 21.6   exercised the local levy option provided by section 473.388, 
 21.7   subdivision 7, it may include in the notice of its proposed 
 21.8   taxes the amount of its proposed taxes attributable to its 
 21.9   exercise of the option.  In the first year of the city or town's 
 21.10  exercise of this option, the statement shall include an estimate 
 21.11  of the reduction of the metropolitan council's tax on the parcel 
 21.12  due to exercise of that option.  The metropolitan council's levy 
 21.13  shall be adjusted accordingly. 
 21.14     <b>[EFFECTIVE DATE.]</b> This section is effective for notices of 
 21.15  proposed property taxes required in 2001 for taxes payable in 
 21.16  2002, and thereafter. 
 21.17     Sec. 7.  Minnesota Statutes 2000, section 276.04, 
 21.18  subdivision 2, is amended to read: 
 21.19     Subd. 2.  [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 
 21.20  shall provide for the printing of the tax statements.  The 
 21.21  commissioner of revenue shall prescribe the form of the property 
 21.22  tax statement and its contents.  The statement must contain a 
 21.23  tabulated statement of the dollar amount due to each taxing 
 21.24  authority and the amount of the state ~~determined school~~ general 
 21.25  education tax from the parcel of real property for which a 
 21.26  particular tax statement is prepared.  The dollar amounts 
 21.27  attributable to the county, the state ~~determined school~~ general 
 21.28  education tax, the voter approved school tax, the other local 
 21.29  school tax, the township or municipality, and the total of the 
 21.30  metropolitan special taxing districts as defined in section 
 21.31  275.065, subdivision 3, paragraph (i), must be separately 
 21.32  stated.  The amounts due all other special taxing districts, if 
 21.33  any, may be aggregated.  The amount of the tax on homesteads 
 21.34  qualifying under the senior citizens' property tax deferral 
 21.35  program under chapter 290B is the total amount of property tax 
 21.36  before subtraction of the deferred property tax amount.  The 
 22.1   amount of the tax on contamination value imposed under sections 
 22.2   270.91 to 270.98, if any, must also be separately stated.  The 
 22.3   dollar amounts, including the dollar amount of any special 
 22.4   assessments, may be rounded to the nearest even whole dollar.  
 22.5   For purposes of this section whole odd-numbered dollars may be 
 22.6   adjusted to the next higher even-numbered dollar.  The amount of 
 22.7   market value excluded under section 273.11, subdivision 16, if 
 22.8   any, must also be listed on the tax statement.  ~~The statement~~ 
 22.9   ~~shall include the following sentences, printed in upper case~~ 
 22.10  ~~letters in boldface print:  "EVEN THOUGH THE STATE OF MINNESOTA~~ 
 22.11  ~~DOES NOT RECEIVE ANY PROPERTY TAX REVENUES, IT SETS THE AMOUNT~~ 
 22.12  ~~OF THE STATE-DETERMINED SCHOOL TAX LEVY.  THE STATE OF MINNESOTA~~ 
 22.13  ~~REDUCES YOUR PROPERTY TAX BY PAYING CREDITS AND REIMBURSEMENTS~~ 
 22.14  ~~TO LOCAL UNITS OF GOVERNMENT."~~ 
 22.15     (b) The property tax statements for manufactured homes and 
 22.16  sectional structures taxed as personal property shall contain 
 22.17  the same information that is required on the tax statements for 
 22.18  real property.  
 22.19     (c) Real and personal property tax statements must contain 
 22.20  the following information in the order given in this paragraph.  
 22.21  The information must contain the current year tax information in 
 22.22  the right column with the corresponding information for the 
 22.23  previous year in a column on the left: 
 22.24     (1) the property's estimated market value under section 
 22.25  273.11, subdivision 1; 
 22.26     (2) the property's taxable market value after reductions 
 22.27  under section 273.11, subdivisions 1a and 16; 
 22.28     (3) the property's gross tax, calculated by adding the 
 22.29  property's total property tax to the sum of the aids enumerated 
 22.30  in clause (4); 
 22.31     (4) a total of the following aids: 
 22.32     (i) education aids payable under chapters 122A, 123A, 123B, 
 22.33  124D, 125A, 126C, and 127A; 
 22.34     (ii) local government aids for cities, towns, and counties 
 22.35  under chapter 477A; 
 22.36     (iii) disparity reduction aid under section 273.1398; and 
 23.1      (iv) homestead and agricultural credit aid under section 
 23.2   273.1398; 
 23.3      (5) for homestead residential and agricultural properties, 
 23.4   the education homestead credit under section 273.1382; 
 23.5      (6) any credits received under sections 273.119; 273.123; 
 23.6   273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 
 23.7   473H.10, except that the amount of credit received under section 
 23.8   273.135 must be separately stated and identified as "taconite 
 23.9   tax relief"; and 
 23.10     (7) the net tax payable in the manner required in paragraph 
 23.11  (a). 
 23.12     (d) If the county uses envelopes for mailing property tax 
 23.13  statements and if the county agrees, a taxing district may 
 23.14  include a notice with the property tax statement notifying 
 23.15  taxpayers when the taxing district will begin its budget 
 23.16  deliberations for the current year, and encouraging taxpayers to 
 23.17  attend the hearings.  If the county allows notices to be 
 23.18  included in the envelope containing the property tax statement, 
 23.19  and if more than one taxing district relative to a given 
 23.20  property decides to include a notice with the tax statement, the 
 23.21  county treasurer or auditor must coordinate the process and may 
 23.22  combine the information on a single announcement.  
 23.23     The commissioner of revenue shall certify to the county 
 23.24  auditor the actual or estimated aids enumerated in clause (4) 
 23.25  that local governments will receive in the following year.  The 
 23.26  commissioner must certify this amount by January 1 of each year. 
 23.27     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
 23.28  and thereafter, for statements required in 2002 and thereafter. 
 23.29     Sec. 8.  Minnesota Statutes 2000, section 276A.06, 
 23.30  subdivision 3, is amended to read: 
 23.31     Subd. 3.  [APPORTIONMENT OF LEVY.] The county auditor shall 
 23.32  apportion the levy of each governmental unit in the county in 
 23.33  the manner prescribed by this subdivision.  The auditor shall: 
 23.34     (a) by August 20 of 1997 and each subsequent year, 
 23.35  determine the areawide portion of the levy for each governmental 
 23.36  unit by multiplying the local tax rate of the governmental unit 
 24.1   for the preceding levy year times the distribution value set 
 24.2   forth in subdivision 2, clause (b); ~~and~~ 
 24.3      (b) by September 5 of 1997 and each subsequent year, 
 24.4   determine the local portion of the current year's levy by 
 24.5   subtracting the resulting amount from clause (a) from the 
 24.6   governmental unit's current year's levy; and 
 24.7      (c) for determinations made under paragraph (a) in the case 
 24.8   of school districts, in 2001 and thereafter, for taxes payable 
 24.9   in 2002 and thereafter, exclude the general education tax rate 
 24.10  from the local tax rate for the preceding levy year. 
 24.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 24.12  following final enactment. 
 24.13     Sec. 9.  Minnesota Statutes 2000, section 473F.08, 
 24.14  subdivision 3, is amended to read: 
 24.15     Subd. 3.  [APPORTIONMENT OF LEVY.] The county auditor shall 
 24.16  apportion the levy of each governmental unit in the auditor's 
 24.17  county in the manner prescribed by this subdivision.  The 
 24.18  auditor shall: 
 24.19     (a) by August 20, determine the areawide portion of the 
 24.20  levy for each governmental unit by multiplying the local tax 
 24.21  rate of the governmental unit for the preceding levy year times 
 24.22  the distribution value set forth in subdivision 2, clause (b); 
 24.23  ~~and~~ 
 24.24     (b) by September 5, determine the local portion of the 
 24.25  current year's levy by subtracting the resulting amount from 
 24.26  clause (a) from the governmental unit's current year's levy; and 
 24.27     (c) for determinations made under paragraph (a), in the 
 24.28  case of school districts, in 2001 and thereafter, for taxes 
 24.29  payable in 2002 and thereafter, exclude the general education 
 24.30  tax rate from the local tax rate for the preceding levy year. 
 24.31     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 24.32  following final enactment. 
 24.33     Sec. 10.  Minnesota Statutes 2000, section 477A.011, 
 24.34  subdivision 20, is amended to read: 
 24.35     Subd. 20.  [CITY NET TAX CAPACITY.] "City net tax capacity" 
 24.36  means (1) the net tax capacity computed using the net tax 
 25.1   capacity rates in section 273.13, and the market values for 
 25.2   taxes payable in the year prior to the aid distribution ~~plus (2)~~ 
 25.3   ~~a city's fiscal disparities distribution tax capacity under~~ 
 25.4   ~~section 276A.06, subdivision 2, paragraph (b), or 473F.08,~~ 
 25.5   ~~subdivision 2, paragraph (b), for taxes payable in the year~~ 
 25.6   ~~prior to that for which aids are being calculated~~.  The market 
 25.7   value utilized in computing city net tax capacity shall be 
 25.8   reduced by the sum of (1) ~~a city's market value of commercial~~ 
 25.9   ~~industrial property as defined in section 276A.01, subdivision~~ 
 25.10  ~~3, or 473F.02, subdivision 3, multiplied by the ratio determined~~ 
 25.11  ~~pursuant to section 276A.06, subdivision 2, paragraph (a), or~~ 
 25.12  ~~473F.08, subdivision 2, paragraph (a), (2)~~ the market value of 
 25.13  the captured value of tax increment financing districts as 
 25.14  defined in section 469.177, subdivision 2, and ~~(3)~~ (2) the 
 25.15  market value of transmission lines deducted from a city's total 
 25.16  net tax capacity under section 273.425.  The city net tax 
 25.17  capacity will be computed using equalized market values.  
 25.18     <b>[EFFECTIVE DATE.]</b> This section is effective for aids 
 25.19  payable in calendar year 2002 and thereafter. 
 25.20     Sec. 11.  [REPEALER.] 
 25.21     Minnesota Statutes 2000, section 126C.13, subdivisions 1, 
 25.22  2, and 3, are repealed. 
 25.23     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
 25.24  payable in 2002 and subsequent years. 
 25.25                             ARTICLE 3 
 25.26                         CLASS RATE REFORM 
 25.27     Section 1.  Minnesota Statutes 2000, section 273.13, 
 25.28  subdivision 24, is amended to read: 
 25.29     Subd. 24.  [CLASS 3.] (a) Commercial and industrial 
 25.30  property and utility real and personal property is class 3a.  
 25.31     (1) Except as otherwise provided, each parcel of 
 25.32  commercial, industrial, or utility real property has a class 
 25.33  rate of 2.4 percent of the first tier of market value, and 3.4 
 25.34  percent of the remaining market value.  In the case of 
 25.35  contiguous parcels of property owned by the same person or 
 25.36  entity, only the value equal to the first-tier value of the 
 26.1   contiguous parcels qualifies for the reduced class rate, except 
 26.2   that contiguous parcels owned by the same person or entity shall 
 26.3   be eligible for the first-tier value class rate on each separate 
 26.4   business operated by the owner of the property, provided the 
 26.5   business is housed in a separate structure.  For the purposes of 
 26.6   this subdivision, the first tier means the first $150,000 of 
 26.7   market value.  Real property owned in fee by a utility for 
 26.8   transmission line right-of-way shall be classified at the class 
 26.9   rate for the higher tier.  
 26.10     For purposes of this subdivision, parcels are considered to 
 26.11  be contiguous even if they are separated from each other by a 
 26.12  road, street, waterway, or other similar intervening type of 
 26.13  property.  Connections between parcels that consist of power 
 26.14  lines or pipelines do not cause the parcels to be contiguous.  
 26.15  Property owners who have contiguous parcels of property that 
 26.16  constitute separate businesses that may qualify for the 
 26.17  first-tier class rate shall notify the assessor by July 1, for 
 26.18  treatment beginning in the following taxes payable year.  
 26.19     (2) Personal property that is:  (i) part of an electric 
 26.20  generation, transmission, or distribution system; or (ii) part 
 26.21  of a pipeline system transporting or distributing water, gas, 
 26.22  crude oil, or petroleum products; and (iii) not described in 
 26.23  clause (3), has a class rate as provided under clause (1) for 
 26.24  the first tier of market value and the remaining market value.  
 26.25  In the case of multiple parcels in one county that are owned by 
 26.26  one person or entity, only one first tier amount is eligible for 
 26.27  the reduced rate.  
 26.28     (3) The entire market value of personal property that is:  
 26.29  (i) tools, implements, and machinery of an electric generation, 
 26.30  transmission, or distribution system; (ii) tools, implements, 
 26.31  and machinery of a pipeline system transporting or distributing 
 26.32  water, gas, crude oil, or petroleum products; or (iii) the mains 
 26.33  and pipes used in the distribution of steam or hot or chilled 
 26.34  water for heating or cooling buildings, has a class rate as 
 26.35  provided under clause (1) for the remaining market value in 
 26.36  excess of the first tier. 
 27.1      (b) Employment property defined in section 469.166, during 
 27.2   the period provided in section 469.170, shall constitute class 
 27.3   3b.  The class rates for class 3b property are determined under 
 27.4   paragraph (a). 
 27.5      (c)(1) Subject to the limitations of clause (2), structures 
 27.6   which are (i) located on property classified as class 3a, (ii) 
 27.7   constructed under an initial building permit issued after 
 27.8   January 2, 1996, (iii) located in a transit zone as defined 
 27.9   under section 473.3915, subdivision 3, (iv) located within the 
 27.10  boundaries of a school district, and (v) not primarily used for 
 27.11  retail or transient lodging purposes, shall have a class rate 
 27.12  equal to the lesser of 2.975 percent or the class rate of the 
 27.13  second tier of the commercial property rate under paragraph (a) 
 27.14  on any portion of the market value that does not qualify for the 
 27.15  first tier class rate under paragraph (a).  As used in item (v), 
 27.16  a structure is primarily used for retail or transient lodging 
 27.17  purposes if over 50 percent of its square footage is used for 
 27.18  those purposes.  A class rate equal to the lesser of 2.975 
 27.19  percent or the class rate of the second tier of the commercial 
 27.20  property class rate under paragraph (a) shall also apply to 
 27.21  improvements to existing structures that meet the requirements 
 27.22  of items (i) to (v) if the improvements are constructed under an 
 27.23  initial building permit issued after January 2, 1996, even if 
 27.24  the remainder of the structure was constructed prior to January 
 27.25  2, 1996.  For the purposes of this paragraph, a structure shall 
 27.26  be considered to be located in a transit zone if any portion of 
 27.27  the structure lies within the zone.  If any property once 
 27.28  eligible for treatment under this paragraph ceases to remain 
 27.29  eligible due to revisions in transit zone boundaries, the 
 27.30  property shall continue to receive treatment under this 
 27.31  paragraph for a period of three years. 
 27.32     (2) This clause applies to any structure qualifying for the 
 27.33  transit zone reduced class rate under clause (1) on January 2, 
 27.34  1999, or any structure meeting any of the qualification criteria 
 27.35  in item (i) and otherwise qualifying for the transit zone 
 27.36  reduced class rate under clause (1).  Such a structure continues 
 28.1   to receive the transit zone reduced class rate until the 
 28.2   occurrence of one of the events in item (ii).  Property 
 28.3   qualifying under item (i)(D), that is located outside of a city 
 28.4   of the first class, qualifies for the transit zone reduced class 
 28.5   rate as provided in that item.  Property qualifying under item 
 28.6   (i)(E) qualifies for the transit zone reduced class rate as 
 28.7   provided in that item. 
 28.8      (i) A structure qualifies for the rate in this clause if it 
 28.9   is: 
 28.10     (A) property for which a building permit was issued before 
 28.11  December 31, 1998; or 
 28.12     (B) property for which a building permit was issued before 
 28.13  June 30, 2001, if: 
 28.14     (I) at least 50 percent of the land on which the structure 
 28.15  is to be built has been acquired or is the subject of signed 
 28.16  purchase agreements or signed options as of March 15, 1998, by 
 28.17  the entity that proposes construction of the project or an 
 28.18  affiliate of the entity; 
 28.19     (II) signed agreements have been entered into with one 
 28.20  entity or with affiliated entities to lease for the account of 
 28.21  the entity or affiliated entities at least 50 percent of the 
 28.22  square footage of the structure or the owner of the structure 
 28.23  will occupy at least 50 percent of the square footage of the 
 28.24  structure; and 
 28.25     (III) one of the following requirements is met: 
 28.26     the project proposer has submitted the completed data 
 28.27  portions of an environmental assessment worksheet by December 
 28.28  31, 1998; or 
 28.29     a notice of determination of adequacy of an environmental 
 28.30  impact statement has been published by April 1, 1999; or 
 28.31     an alternative urban areawide review has been completed by 
 28.32  April 1, 1999; or 
 28.33     (C) property for which a building permit is issued before 
 28.34  July 30, 1999, if: 
 28.35     (I) at least 50 percent of the land on which the structure 
 28.36  is to be built has been acquired or is the subject of signed 
 29.1   purchase agreements as of March 31, 1998, by the entity that 
 29.2   proposes construction of the project or an affiliate of the 
 29.3   entity; 
 29.4      (II) a signed agreement has been entered into between the 
 29.5   building developer and a tenant to lease for its own account at 
 29.6   least 200,000 square feet of space in the building; 
 29.7      (III) a signed letter of intent is entered into by July 1, 
 29.8   1998, between the building developer and the tenant to lease the 
 29.9   space for its own account; and 
 29.10     (IV) the environmental review process required by state law 
 29.11  was commenced by December 31, 1998; 
 29.12     (D) property for which an irrevocable letter of credit with 
 29.13  a housing and redevelopment authority was signed before December 
 29.14  31, 1998.  The structure shall receive the transit zone reduced 
 29.15  class rate during construction and for the duration of time that 
 29.16  the original tenants remain in the building.  Any unoccupied net 
 29.17  leasable square footage that is not leased within 36 months 
 29.18  after the certificate of occupancy has been issued for the 
 29.19  building shall not be eligible to receive the reduced class 
 29.20  rate.  This reduced class rate applies only if a qualifying 
 29.21  entity continues to own the property; 
 29.22     (E) property, located in a city of the first class, and for 
 29.23  which the building permits for the excavation, the parking ramp, 
 29.24  and the office tower were issued prior to April 1, 1999, shall 
 29.25  receive the reduced class rate during construction and for the 
 29.26  first five assessment years immediately following its initial 
 29.27  occupancy provided that, when completed, at least 25 percent of 
 29.28  the net leasable square footage must be occupied by a qualifying 
 29.29  entity each year during this time period.  In order to receive 
 29.30  the reduced class rate on the structure in any subsequent 
 29.31  assessment years, at least 50 percent of the rentable square 
 29.32  footage must be occupied by a qualifying entity.  This reduced 
 29.33  class rate applies only if a qualifying entity continues to own 
 29.34  the property. 
 29.35     (ii) A structure specified by this clause, other than a 
 29.36  structure qualifying under clause (i)(D) or (E), shall continue 
 30.1   to receive the transit zone reduced class rate until the 
 30.2   occurrence of one of the following events: 
 30.3      (A) if the structure upon initial occupancy will be owner 
 30.4   occupied by the entity initially constructing the structure or 
 30.5   an affiliated entity, the structure receives the reduced class 
 30.6   rate until the structure ceases to be at least 50 percent 
 30.7   occupied by the entity or an affiliated entity, provided, if the 
 30.8   portion of the structure occupied by that entity or an affiliate 
 30.9   of the entity is less than 85 percent, the transit zone class 
 30.10  rate reduction for the portion of structure not so occupied 
 30.11  terminates upon the leasing of such space to any nonaffiliated 
 30.12  entity; or 
 30.13     (B) if the structure is leased by a single entity or 
 30.14  affiliated entity at the time of initial occupancy, the 
 30.15  structure shall receive the reduced class rate until the 
 30.16  structure ceases to be at least 50 percent occupied by the 
 30.17  entity or an affiliated entity, provided, if the portion of the 
 30.18  structure occupied by that entity or an affiliate of the entity 
 30.19  is less than 85 percent, the transit zone class rate reduction 
 30.20  for the portion of structure not so occupied shall terminate 
 30.21  upon the leasing of such space to any nonaffiliated entity; or 
 30.22     (C) if the structure meets the criteria in item (i)(C), the 
 30.23  structure shall receive the reduced class rate until the 
 30.24  expiration of the initial lease term of the applicable tenants. 
 30.25     Percentages occupied or leased shall be determined based 
 30.26  upon net leasable square footage in the structure.  The assessor 
 30.27  shall allocate the value of the structure in the same fashion as 
 30.28  provided in the general law for portions of any structure 
 30.29  receiving and not receiving the transit tax class reduction as a 
 30.30  result of this clause. 
 30.31     (3) For purposes of paragraph (c), "qualifying entity" 
 30.32  means the entity owning the property on September 1, 2000, or an 
 30.33  affiliate of an entity that owned the property on September 1, 
 30.34  2000. 
 30.35     (d) Class 3c consists of improvements made to existing 
 30.36  commercial or industrial structures under a building permit 
 31.1   issued after January 2, 2001, provided that the original 
 31.2   structure was built before January 2, 2001.  Class 3c has a 
 31.3   class rate of 2.4 percent of market value. 
 31.4      <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
 31.5   payable in 2003 and subsequent years. 
 31.6      Sec. 2.  Minnesota Statutes 2000, section 273.13, 
 31.7   subdivision 25, is amended to read: 
 31.8      Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
 31.9   estate containing four or more units and used or held for use by 
 31.10  the owner or by the tenants or lessees of the owner as a 
 31.11  residence for rental periods of 30 days or more.  Class 4a also 
 31.12  includes hospitals licensed under sections 144.50 to 144.56, 
 31.13  other than hospitals exempt under section 272.02, and contiguous 
 31.14  property used for hospital purposes, without regard to whether 
 31.15  the property has been platted or subdivided.  ~~Class 4a property~~ 
 31.16  ~~in a city with a population of 5,000 or less, that is (1)~~ 
 31.17  ~~located outside of the metropolitan area, as defined in section~~ 
 31.18  ~~473.121, subdivision 2, or outside any county contiguous to the~~ 
 31.19  ~~metropolitan area, and (2) whose city boundary is at least 15~~ 
 31.20  ~~miles from the boundary of any city with a population greater~~ 
 31.21  ~~than 5,000 has a class rate of 2.15 percent of market value.~~  
 31.22  ~~All other~~ Class 4a property has a class rate of ~~2.4~~ 1.65 percent 
 31.23  of market value.  ~~For purposes of this paragraph, population has~~ 
 31.24  ~~the same meaning given in section 477A.011, subdivision 3.~~ 
 31.25     (b) Class 4b includes: 
 31.26     (1) residential real estate containing less than four units 
 31.27  that does not qualify as class 4bb, other than seasonal 
 31.28  residential, and recreational; 
 31.29     (2) manufactured homes not classified under any other 
 31.30  provision; 
 31.31     (3) a dwelling, garage, and surrounding one acre of 
 31.32  property on a nonhomestead farm classified under subdivision 23, 
 31.33  paragraph (b) containing two or three units; 
 31.34     (4) unimproved property that is classified residential as 
 31.35  determined under subdivision 33.  
 31.36     Class 4b property has a class rate of 1.65 percent of 
 32.1   market value.  
 32.2      (c) Class 4bb includes: 
 32.3      (1) nonhomestead residential real estate containing one 
 32.4   unit, other than seasonal residential, and recreational; and 
 32.5      (2) a single family dwelling, garage, and surrounding one 
 32.6   acre of property on a nonhomestead farm classified under 
 32.7   subdivision 23, paragraph (b). 
 32.8      Class 4bb has a class rate of 1.2 percent on the first 
 32.9   $76,000 of market value and a class rate of 1.65 percent of its 
 32.10  market value that exceeds $76,000. 
 32.11     Property that has been classified as seasonal recreational 
 32.12  residential property at any time during which it has been owned 
 32.13  by the current owner or spouse of the current owner does not 
 32.14  qualify for class 4bb. 
 32.15     (d) Class 4c property includes: 
 32.16     (1) except as provided in subdivision 22, paragraph (c), 
 32.17  real property devoted to temporary and seasonal residential 
 32.18  occupancy for recreation purposes, including real property 
 32.19  devoted to temporary and seasonal residential occupancy for 
 32.20  recreation purposes and not devoted to commercial purposes for 
 32.21  more than 250 days in the year preceding the year of 
 32.22  assessment.  For purposes of this clause, property is devoted to 
 32.23  a commercial purpose on a specific day if any portion of the 
 32.24  property is used for residential occupancy, and a fee is charged 
 32.25  for residential occupancy.  In order for a property to be 
 32.26  classified as class 4c, seasonal recreational residential for 
 32.27  commercial purposes, at least 40 percent of the annual gross 
 32.28  lodging receipts related to the property must be from business 
 32.29  conducted during 90 consecutive days and either (i) at least 60 
 32.30  percent of all paid bookings by lodging guests during the year 
 32.31  must be for periods of at least two consecutive nights; or (ii) 
 32.32  at least 20 percent of the annual gross receipts must be from 
 32.33  charges for rental of fish houses, boats and motors, 
 32.34  snowmobiles, downhill or cross-country ski equipment, or charges 
 32.35  for marina services, launch services, and guide services, or the 
 32.36  sale of bait and fishing tackle.  For purposes of this 
 33.1   determination, a paid booking of five or more nights shall be 
 33.2   counted as two bookings.  Class 4c also includes commercial use 
 33.3   real property used exclusively for recreational purposes in 
 33.4   conjunction with class 4c property devoted to temporary and 
 33.5   seasonal residential occupancy for recreational purposes, up to 
 33.6   a total of two acres, provided the property is not devoted to 
 33.7   commercial recreational use for more than 250 days in the year 
 33.8   preceding the year of assessment and is located within two miles 
 33.9   of the class 4c property with which it is used.  Class 4c 
 33.10  property classified in this clause also includes the remainder 
 33.11  of class 1c resorts provided that the entire property including 
 33.12  that portion of the property classified as class 1c also meets 
 33.13  the requirements for class 4c under this clause; otherwise the 
 33.14  entire property is classified as class 3.  Owners of real 
 33.15  property devoted to temporary and seasonal residential occupancy 
 33.16  for recreation purposes and all or a portion of which was 
 33.17  devoted to commercial purposes for not more than 250 days in the 
 33.18  year preceding the year of assessment desiring classification as 
 33.19  class 1c or 4c, must submit a declaration to the assessor 
 33.20  designating the cabins or units occupied for 250 days or less in 
 33.21  the year preceding the year of assessment by January 15 of the 
 33.22  assessment year.  Those cabins or units and a proportionate 
 33.23  share of the land on which they are located will be designated 
 33.24  class 1c or 4c as otherwise provided.  The remainder of the 
 33.25  cabins or units and a proportionate share of the land on which 
 33.26  they are located will be designated as class 3a.  The owner of 
 33.27  property desiring designation as class 1c or 4c property must 
 33.28  provide guest registers or other records demonstrating that the 
 33.29  units for which class 1c or 4c designation is sought were not 
 33.30  occupied for more than 250 days in the year preceding the 
 33.31  assessment if so requested.  The portion of a property operated 
 33.32  as a (1) restaurant, (2) bar, (3) gift shop, and (4) other 
 33.33  nonresidential facility operated on a commercial basis not 
 33.34  directly related to temporary and seasonal residential occupancy 
 33.35  for recreation purposes shall not qualify for class 1c or 4c; 
 33.36     (2) qualified property used as a golf course if: 
 34.1      (i) it is open to the public on a daily fee basis.  It may 
 34.2   charge membership fees or dues, but a membership fee may not be 
 34.3   required in order to use the property for golfing, and its green 
 34.4   fees for golfing must be comparable to green fees typically 
 34.5   charged by municipal courses; and 
 34.6      (ii) it meets the requirements of section 273.112, 
 34.7   subdivision 3, paragraph (d). 
 34.8      A structure used as a clubhouse, restaurant, or place of 
 34.9   refreshment in conjunction with the golf course is classified as 
 34.10  class 3a property; 
 34.11     (3) real property up to a maximum of one acre of land owned 
 34.12  by a nonprofit community service oriented organization; provided 
 34.13  that the property is not used for a revenue-producing activity 
 34.14  for more than six days in the calendar year preceding the year 
 34.15  of assessment and the property is not used for residential 
 34.16  purposes on either a temporary or permanent basis.  For purposes 
 34.17  of this clause, a "nonprofit community service oriented 
 34.18  organization" means any corporation, society, association, 
 34.19  foundation, or institution organized and operated exclusively 
 34.20  for charitable, religious, fraternal, civic, or educational 
 34.21  purposes, and which is exempt from federal income taxation 
 34.22  pursuant to section 501(c)(3), (10), or (19) of the Internal 
 34.23  Revenue Code of 1986, as amended through December 31, 1990.  For 
 34.24  purposes of this clause, "revenue-producing activities" shall 
 34.25  include but not be limited to property or that portion of the 
 34.26  property that is used as an on-sale intoxicating liquor or 3.2 
 34.27  percent malt liquor establishment licensed under chapter 340A, a 
 34.28  restaurant open to the public, bowling alley, a retail store, 
 34.29  gambling conducted by organizations licensed under chapter 349, 
 34.30  an insurance business, or office or other space leased or rented 
 34.31  to a lessee who conducts a for-profit enterprise on the 
 34.32  premises.  Any portion of the property which is used for 
 34.33  revenue-producing activities for more than six days in the 
 34.34  calendar year preceding the year of assessment shall be assessed 
 34.35  as class 3a.  The use of the property for social events open 
 34.36  exclusively to members and their guests for periods of less than 
 35.1   24 hours, when an admission is not charged nor any revenues are 
 35.2   received by the organization shall not be considered a 
 35.3   revenue-producing activity; 
 35.4      (4) post-secondary student housing of not more than one 
 35.5   acre of land that is owned by a nonprofit corporation organized 
 35.6   under chapter 317A and is used exclusively by a student 
 35.7   cooperative, sorority, or fraternity for on-campus housing or 
 35.8   housing located within two miles of the border of a college 
 35.9   campus; 
 35.10     (5) manufactured home parks as defined in section 327.14, 
 35.11  subdivision 3; 
 35.12     (6) real property that is actively and exclusively devoted 
 35.13  to indoor fitness, health, social, recreational, and related 
 35.14  uses, is owned and operated by a not-for-profit corporation, and 
 35.15  is located within the metropolitan area as defined in section 
 35.16  473.121, subdivision 2; and 
 35.17     (7) a leased or privately owned noncommercial aircraft 
 35.18  storage hangar not exempt under section 272.01, subdivision 2, 
 35.19  and the land on which it is located, provided that: 
 35.20     (i) the land is on an airport owned or operated by a city, 
 35.21  town, county, metropolitan airports commission, or group 
 35.22  thereof; and 
 35.23     (ii) the land lease, or any ordinance or signed agreement 
 35.24  restricting the use of the leased premise, prohibits commercial 
 35.25  activity performed at the hangar. 
 35.26     If a hangar classified under this clause is sold after June 
 35.27  30, 2000, a bill of sale must be filed by the new owner with the 
 35.28  assessor of the county where the property is located within 60 
 35.29  days of the sale. 
 35.30     Class 4c property has a class rate of 1.65 percent of 
 35.31  market value, except that (i) each parcel of seasonal 
 35.32  residential recreational property not used for commercial 
 35.33  purposes has the same class rates as class 4bb property, (ii) 
 35.34  manufactured home parks assessed under clause (5) have the same 
 35.35  class rate as class 4b property, and (iii) property described in 
 35.36  paragraph (d), clause (4), has the same class rate as the rate 
 36.1   applicable to the first tier of class 4bb nonhomestead 
 36.2   residential real estate under paragraph (c).  
 36.3      (e) Class 4d property is qualifying low-income rental 
 36.4   housing certified to the assessor by the housing finance agency 
 36.5   under sections 273.126 and 462A.071.  Class 4d includes land in 
 36.6   proportion to the total market value of the building that is 
 36.7   qualifying low-income rental housing.  For all properties 
 36.8   qualifying as class 4d, the market value determined by the 
 36.9   assessor must be based on the normal approach to value using 
 36.10  normal unrestricted rents. 
 36.11     Class 4d property has a class rate of one percent of market 
 36.12  value.  
 36.13     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
 36.14  payable in 2002 and subsequent years. 
 36.15     Sec. 3.  Minnesota Statutes 2000, section 273.13, is 
 36.16  amended by adding a subdivision to read: 
 36.17     Subd. 34.  [INFLATION ADJUSTMENT.] Beginning with the year 
 36.18  2002 assessment, for taxes payable in 2003, the commissioner of 
 36.19  revenue shall annually adjust the valuation limits specified in 
 36.20  subdivisions 22, 23, 24, and 25 for inflation.  The commissioner 
 36.21  shall make the adjustments in accordance with section 290.06, 
 36.22  subdivision 2d, except that for the purposes of this subdivision 
 36.23  the percentage increase shall be determined from the year ending 
 36.24  on August 31, 2000, to the year ending on August 31 of the year 
 36.25  preceding the assessment year.  The commissioner shall round the 
 36.26  valuation limits to the nearest $1,000.  The commissioner shall 
 36.27  annually announce the valuation limits at the time specified in 
 36.28  section 290.06 for the succeeding assessment year.  The 
 36.29  determination of the commissioner under this subdivision is not 
 36.30  a rule under the Administrative Procedure Act. 
 36.31     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
 36.32  and thereafter. 
 36.33     Sec. 4.  [STUDY REQUIRED.] 
 36.34     Subdivision 1.  [STUDY.] The commissioner of revenue shall 
 36.35  gather data and conduct a study of Minnesota's property tax 
 36.36  system based on principles and recommendations contained in the 
 37.1   report entitled "Taxing our Strengths - How Minnesota's Property 
 37.2   Tax System Weakens our Communities" published by 1000 friends of 
 37.3   Minnesota in November 2000.  By February 1, 2002, the 
 37.4   commissioner shall make a report to the legislature consisting 
 37.5   of the findings of the study and any recommendations resulting 
 37.6   from the study.  The commissioner shall make any data gathered 
 37.7   in order to conduct the study available to the legislature. 
 37.8      Subd. 2.  [APPROPRIATION.] $....... is appropriated from 
 37.9   the general fund to the commissioner of revenue in fiscal year 
 37.10  2002 to conduct the study required under subdivision 1. 
 37.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 37.12  following final enactment. 
 37.13                             ARTICLE 4 
 37.14                      DISTRICT COURT TAKEOVER 
 37.15     Section 1.  Minnesota Statutes 2000, section 97A.065, 
 37.16  subdivision 2, is amended to read: 
 37.17     Subd. 2.  [FINES AND FORFEITED BAIL.] (a) Fines and 
 37.18  forfeited bail collected from prosecutions of violations of:  
 37.19  the game and fish laws; sections 84.091 to 84.15; sections 84.81 
 37.20  to 84.91; section 169A.20, when the violation involved an 
 37.21  off-road recreational vehicle as defined in section 169A.03, 
 37.22  subdivision 16; chapter 348; and any other law relating to wild 
 37.23  animals or aquatic vegetation, must be paid to the treasurer of 
 37.24  the county where the violation is prosecuted.  The county 
 37.25  treasurer shall submit one-half of the receipts to the 
 37.26  commissioner and credit the balance to the county general 
 37.27  revenue fund except as provided in paragraphs (b), (c), and 
 37.28  (d).  In a county in a judicial district under section 480.181, 
 37.29  subdivision 1, paragraph (b), ~~as added in Laws 1999, chapter~~ 
 37.30  ~~216, article 7, section 26,~~ the share that would otherwise go to 
 37.31  the county under this paragraph must be submitted to the state 
 37.32  treasurer for deposit in the state treasury and credited to the 
 37.33  general fund. 
 37.34     (b) The commissioner must reimburse a county, from the game 
 37.35  and fish fund, for the cost of keeping prisoners prosecuted for 
 37.36  violations under this section if the county board, by 
 38.1   resolution, directs:  (1) the county treasurer to submit all 
 38.2   fines and forfeited bail to the commissioner; and (2) the county 
 38.3   auditor to certify and submit monthly itemized statements to the 
 38.4   commissioner.  
 38.5      (c) The county treasurer shall submit one-half of the 
 38.6   receipts collected under paragraph (a) from prosecutions of 
 38.7   violations of sections 84.81 to 84.91, and 169A.20, except 
 38.8   receipts that are surcharges imposed under section 357.021, 
 38.9   subdivision 6, to the commissioner and credit the balance to the 
 38.10  county general fund.  The commissioner shall credit these 
 38.11  receipts to the snowmobile trails and enforcement account in the 
 38.12  natural resources fund. 
 38.13     (d) The county treasurer shall indicate the amount of the 
 38.14  receipts that are surcharges imposed under section 357.021, 
 38.15  subdivision 6, and shall submit all of those receipts to the 
 38.16  state treasurer. 
 38.17     Sec. 2.  Minnesota Statutes 2000, section 179A.101, 
 38.18  subdivision 1, is amended to read: 
 38.19     Subdivision 1.  [COURT EMPLOYEE UNITS.] (a) The state court 
 38.20  administrator shall meet and negotiate with the exclusive 
 38.21  representative of each of the units specified in this section.  
 38.22  The units provided in this section are the only appropriate 
 38.23  units for court employees.  Court employees, unless otherwise 
 38.24  excluded, are included within the units which include the 
 38.25  classifications to which they are assigned for purposes of 
 38.26  compensation.  Initial assignment of classifications to 
 38.27  bargaining units shall be made by the state court administrator 
 38.28  by August 15~~, 1999~~ of the year preceding the year in which the 
 38.29  state assumes the cost of court administration in the judicial 
 38.30  district in which the bargaining unit is located.  An exclusive 
 38.31  representative may appeal the initial assignment decision of the 
 38.32  state court administrator by filing a petition with the 
 38.33  commissioner within 45 days of being certified as the exclusive 
 38.34  representative for a judicial district.  The units in this 
 38.35  subdivision are the appropriate units of court employees. 
 38.36     (b) The judicial district unit consists of clerical, 
 39.1   administrative, and technical employees of a judicial district 
 39.2   under section 480.181, subdivision 1, paragraph (b), or of two 
 39.3   or more of these districts that are represented by the same 
 39.4   employee organization or one or more subordinate bodies of the 
 39.5   same employee organization.  The judicial district unit includes 
 39.6   individuals, not otherwise excluded, whose work is typically 
 39.7   clerical or secretarial in nature, including nontechnical data 
 39.8   recording and retrieval and general office work, and 
 39.9   individuals, not otherwise excluded, whose work is not typically 
 39.10  manual and which requires specialized knowledge or skills 
 39.11  acquired through two-year academic programs or equivalent 
 39.12  experience or on-the-job training. 
 39.13     (c) The appellate courts unit consists of clerical, 
 39.14  administrative, and technical employees of the court of appeals 
 39.15  and clerical, administrative, and technical employees of the 
 39.16  supreme court.  The appellate courts unit includes individuals, 
 39.17  not otherwise excluded, whose work is typically clerical or 
 39.18  secretarial in nature, including nontechnical data recording and 
 39.19  retrieval and general office work, and individuals, not 
 39.20  otherwise excluded, whose work is not typically manual and which 
 39.21  requires specialized knowledge or skills acquired through 
 39.22  two-year academic programs or equivalent experience or 
 39.23  on-the-job training. 
 39.24     (d) The court employees professional employee unit consists 
 39.25  of professional employees, not otherwise excluded, that are 
 39.26  employed by the supreme court, the court of appeals, or a 
 39.27  judicial district under section 480.181, subdivision 1, 
 39.28  paragraph (b). 
 39.29     (e) The court employees court reporter unit consists of 
 39.30  court reporters not otherwise excluded who are employed by a 
 39.31  judicial district under section 480.181, subdivision 1, 
 39.32  paragraph (a). 
 39.33     (f) Notwithstanding any provision of this chapter or any 
 39.34  other law to the contrary, judges may appoint and remove court 
 39.35  reporters at their pleasure. 
 39.36     (g) Copies of collective bargaining agreements entered into 
 40.1   under this section must be submitted to the legislative 
 40.2   coordinating commission for the commission's information. 
 40.3      Sec. 3.  Minnesota Statutes 2000, section 179A.102, 
 40.4   subdivision 6, is amended to read: 
 40.5      Subd. 6.  [CONTRACT AND REPRESENTATION RESPONSIBILITIES.] 
 40.6   (a) Notwithstanding the provisions of section 179A.101, the 
 40.7   exclusive representatives of units of court employees certified 
 40.8   prior to the effective date of the judicial district coming 
 40.9   under section 480.181, subdivision 1, paragraph (b), remain 
 40.10  responsible for administration of their contracts and for other 
 40.11  contractual duties and have the right to dues and fair share fee 
 40.12  deduction and other contractual privileges and rights until a 
 40.13  contract is agreed upon with the state court administrator for a 
 40.14  new unit established under section 179A.101 ~~or until June 30,~~ 
 40.15  ~~2001, whichever is earlier~~.  Exclusive representatives of court 
 40.16  employees certified after the effective date of this section in 
 40.17  the judicial district are immediately upon certification 
 40.18  responsible for bargaining on behalf of employees within the 
 40.19  unit.  They are also responsible for administering grievances 
 40.20  arising under previous contracts covering employees included 
 40.21  within the unit which remain unresolved ~~on June 30, 2001, or~~ 
 40.22  upon agreement with the state court administrator on a contract 
 40.23  for a new unit established under section 179A.101~~, whichever is~~ 
 40.24  ~~earlier~~.  Where the employer does not object, these 
 40.25  responsibilities may be varied by agreement between the outgoing 
 40.26  and incoming exclusive representatives.  All other rights and 
 40.27  duties of representation begin on July 1~~, 2001~~ of the year in 
 40.28  which the state assumes the funding of court administration in 
 40.29  the judicial district, except that exclusive representatives 
 40.30  certified after the effective date of this section shall 
 40.31  immediately, upon certification, have the right to all employer 
 40.32  information and all forms of access to employees within the 
 40.33  bargaining unit which would be permitted to the current contract 
 40.34  holder, including the rights in section 179A.07, subdivision 6.  
 40.35  This section does not affect an existing collective bargaining 
 40.36  contract.  Incoming exclusive representatives of court employees 
 41.1   from judicial districts that come under section 480.181, 
 41.2   subdivision 1, paragraph (b), are immediately, upon 
 41.3   certification, responsible for bargaining on behalf of all 
 41.4   previously unrepresented employees assigned to their units.  All 
 41.5   other rights and duties of exclusive representatives begin on 
 41.6   July 1~~, 2001~~ of the year in which the state assumes the funding 
 41.7   of court administration in the judicial district. 
 41.8      (b) Nothing in this act or Laws 1999, chapter 216, article 
 41.9   7, sections 3 to 15, prevents an exclusive representative 
 41.10  certified after the effective ~~date of sections 3 to 15~~ dates of 
 41.11  those provisions from assessing fair share or dues deductions 
 41.12  immediately upon certification for employees in a unit 
 41.13  established under section 179A.101 if the employees were 
 41.14  unrepresented for collective bargaining purposes before that 
 41.15  certification. 
 41.16     Sec. 4.  Minnesota Statutes 2000, section 179A.103, 
 41.17  subdivision 1, is amended to read: 
 41.18     Subdivision 1.  [CONTRACTS.] Contracts for the period 
 41.19  commencing July 1~~, 2000,~~ of the year in which the state assumes 
 41.20  the cost of court administration in the judicial district for 
 41.21  the judicial district court employees ~~of judicial districts that~~ 
 41.22  ~~are under section 480.181, subdivision 1, paragraph (b),~~ must be 
 41.23  negotiated with the state court administrator.  Negotiations for 
 41.24  those contracts may begin any time after July 1~~, 1999~~ of the 
 41.25  year before the state assumes the cost, and may be initiated by 
 41.26  either party notifying the other of the desire to begin the 
 41.27  negotiating process.  Negotiations are subject to this chapter. 
 41.28     Sec. 5.  Minnesota Statutes 2000, section 273.1398, 
 41.29  subdivision 4a, is amended to read: 
 41.30     Subd. 4a.  [AID OFFSET FOR COURT COSTS.] (a) By July 15~~,~~ 
 41.31  ~~1999~~ of the year preceding the year in which the state assumes 
 41.32  the cost of court administration in the judicial district, the 
 41.33  supreme court shall determine and certify to the commissioner of 
 41.34  revenue for each county~~, other than counties located in the~~ 
 41.35  ~~eighth judicial district,~~ the county's share of the costs 
 41.36  assumed under this act and Laws 1999, chapter 216, article 7, 
 42.1   during the succeeding fiscal year ~~beginning July 1, 2000~~, less 
 42.2   an amount equal to the county's share of transferred fines 
 42.3   collected by the district courts in the county during the 
 42.4   calendar year ~~1998~~ two years prior to the calendar year in which 
 42.5   the state assumes the cost of court administration in the 
 42.6   judicial district.  
 42.7      (b) Payments to a county under subdivision 2 or section 
 42.8   273.166 for the calendar year ~~2000~~ in which the state assumes 
 42.9   the cost of court administration in the judicial district must 
 42.10  be permanently reduced by an amount equal to ~~75~~ 50 percent of 
 42.11  the net cost to the state for assumption of district court costs 
 42.12  as certified in paragraph (a). 
 42.13     (c) Payments to a county under subdivision 2 or section 
 42.14  273.166 for the calendar year ~~2001~~ after the calendar year in 
 42.15  which the state assumes the cost of court administration in the 
 42.16  judicial district must be permanently reduced by an amount equal 
 42.17  to ~~25~~ 50 percent of the net cost to the state for assumption of 
 42.18  district court costs as certified in paragraph (a). 
 42.19     (d) Payments to a county under subdivision 2 for calendar 
 42.20  year 2001 are permanently increased by an amount equal to 7.5 
 42.21  percent of the county's share of transferred fines collected by 
 42.22  the district courts in the county during calendar year 1998, as 
 42.23  determined under paragraph (a).  If the amount determined in 
 42.24  paragraph (a) exceeds the amount of aid a county is scheduled to 
 42.25  be paid under subdivision 2 in 2000, then the county shall not 
 42.26  receive an aid increase under this paragraph. 
 42.27     Sec. 6.  Minnesota Statutes 2000, section 299D.03, 
 42.28  subdivision 5, is amended to read: 
 42.29     Subd. 5.  [FINES AND FORFEITED BAIL MONEY.] (a) All fines 
 42.30  and forfeited bail money, from traffic and motor vehicle law 
 42.31  violations, collected from persons apprehended or arrested by 
 42.32  officers of the state patrol, shall be paid by the person or 
 42.33  officer collecting the fines, forfeited bail money or 
 42.34  installments thereof, on or before the tenth day after the last 
 42.35  day of the month in which these moneys were collected, to the 
 42.36  county treasurer of the county where the violation occurred.  
 43.1   Three-eighths of these receipts shall be credited to the general 
 43.2   revenue fund of the county, except that in a county in a 
 43.3   judicial district under section 480.181, subdivision 1, 
 43.4   paragraph (b), ~~as added in Laws 1999, chapter 216, article 7,~~ 
 43.5   ~~section 26,~~ this three-eighths share must be transmitted to the 
 43.6   state treasurer for deposit in the state treasury and credited 
 43.7   to the general fund.  The other five-eighths of these receipts 
 43.8   shall be transmitted by that officer to the state treasurer 
 43.9   and ~~shall be credited as follows:~~ 
 43.10     ~~(1) In the fiscal year ending June 30, 1991, the first~~ 
 43.11  ~~$275,000 in money received by the state treasurer after June 4,~~ 
 43.12  ~~1991, must be credited to the transportation services fund, and~~ 
 43.13  ~~the remainder in the fiscal year credited to the trunk highway~~ 
 43.14  ~~fund.~~ 
 43.15     ~~(2) In fiscal year 1992, the first $215,000 in money~~ 
 43.16  ~~received by the state treasurer in the fiscal year must be~~ 
 43.17  ~~credited to the transportation services fund, and the remainder~~ 
 43.18  ~~credited to the trunk highway fund.~~ 
 43.19     ~~(3) In fiscal year 1993 and subsequent years, the entire~~ 
 43.20  ~~amount received by the state treasurer~~ must be credited to the 
 43.21  trunk highway fund.  If, however, the violation occurs within a 
 43.22  municipality and the city attorney prosecutes the offense, and a 
 43.23  plea of not guilty is entered, one-third of the receipts shall 
 43.24  be credited to the general revenue fund of the county, one-third 
 43.25  of the receipts shall be paid to the municipality prosecuting 
 43.26  the offense, and one-third shall be transmitted to the state 
 43.27  treasurer as provided in this subdivision.  All costs of 
 43.28  participation in a nationwide police communication system 
 43.29  chargeable to the state of Minnesota shall be paid from 
 43.30  appropriations for that purpose. 
 43.31     (b) Notwithstanding any other provisions of law, all fines 
 43.32  and forfeited bail money from violations of statutes governing 
 43.33  the maximum weight of motor vehicles, collected from persons 
 43.34  apprehended or arrested by employees of the state of Minnesota, 
 43.35  by means of stationary or portable scales operated by these 
 43.36  employees, shall be paid by the person or officer collecting the 
 44.1   fines or forfeited bail money, on or before the tenth day after 
 44.2   the last day of the month in which the collections were made, to 
 44.3   the county treasurer of the county where the violation 
 44.4   occurred.  Five-eighths of these receipts shall be transmitted 
 44.5   by that officer to the state treasurer and shall be credited to 
 44.6   the highway user tax distribution fund.  Three-eighths of these 
 44.7   receipts shall be credited to the general revenue fund of the 
 44.8   county, except that in a county in a judicial district under 
 44.9   section 480.181, subdivision 1, paragraph (b), ~~as added in Laws~~ 
 44.10  ~~1999, chapter 216, article 7, section 26,~~ this three-eighths 
 44.11  share must be transmitted to the state treasurer for deposit in 
 44.12  the state treasury and credited to the general fund. 
 44.13     Sec. 7.  Minnesota Statutes 2000, section 357.021, 
 44.14  subdivision 1a, is amended to read: 
 44.15     Subd. 1a.  [TRANSMITTAL OF FEES TO STATE TREASURER.] (a) 
 44.16  Every person, including the state of Minnesota and all bodies 
 44.17  politic and corporate, who shall transact any business in the 
 44.18  district court, shall pay to the court administrator of said 
 44.19  court the sundry fees prescribed in subdivision 2.  Except as 
 44.20  provided in paragraph (d), the court administrator shall 
 44.21  transmit the fees monthly to the state treasurer for deposit in 
 44.22  the state treasury and credit to the general fund.  
 44.23     (b) In a county which has a screener-collector position, 
 44.24  fees paid by a county pursuant to this subdivision shall be 
 44.25  transmitted monthly to the county treasurer, who shall apply the 
 44.26  fees first to reimburse the county for the amount of the salary 
 44.27  paid for the screener-collector position.  The balance of the 
 44.28  fees collected shall then be forwarded to the state treasurer 
 44.29  for deposit in the state treasury and credited to the general 
 44.30  fund.  In a county in a judicial district under section 480.181, 
 44.31  subdivision 1, paragraph (b), ~~as added in Laws 1999, chapter~~ 
 44.32  ~~216, article 7, section 26,~~ which has a screener-collector 
 44.33  position, the fees paid by a county shall be transmitted monthly 
 44.34  to the state treasurer for deposit in the state treasury and 
 44.35  credited to the general fund.  A screener-collector position for 
 44.36  purposes of this paragraph is an employee whose function is to 
 45.1   increase the collection of fines and to review the incomes of 
 45.2   potential clients of the public defender, in order to verify 
 45.3   eligibility for that service. 
 45.4      (c) No fee is required under this section from the public 
 45.5   authority or the party the public authority represents in an 
 45.6   action for: 
 45.7      (1) child support enforcement or modification, medical 
 45.8   assistance enforcement, or establishment of parentage in the 
 45.9   district court, or in a proceeding under section 484.702; 
 45.10     (2) civil commitment under chapter 253B; 
 45.11     (3) the appointment of a public conservator or public 
 45.12  guardian or any other action under chapters 252A and 525; 
 45.13     (4) wrongfully obtaining public assistance under section 
 45.14  256.98 or 256D.07, or recovery of overpayments of public 
 45.15  assistance; 
 45.16     (5) court relief under chapter 260; 
 45.17     (6) forfeiture of property under sections 169A.63 and 
 45.18  609.531 to 609.5317; 
 45.19     (7) recovery of amounts issued by political subdivisions or 
 45.20  public institutions under sections 246.52, 252.27, 256.045, 
 45.21  256.25, 256.87, 256B.042, 256B.14, 256B.15, 256B.37, 260B.331, 
 45.22  and 260C.331, or other sections referring to other forms of 
 45.23  public assistance; 
 45.24     (8) restitution under section 611A.04; or 
 45.25     (9) actions seeking monetary relief in favor of the state 
 45.26  pursuant to section 16D.14, subdivision 5. 
 45.27     (d) The fees collected for child support modifications 
 45.28  under subdivision 2, clause (13), must be transmitted to the 
 45.29  county treasurer for deposit in the county general fund.  The 
 45.30  fees must be used by the county to pay for child support 
 45.31  enforcement efforts by county attorneys. 
 45.32     Sec. 8.  Minnesota Statutes 2000, section 480.181, 
 45.33  subdivision 1, is amended to read: 
 45.34     Subdivision 1.  [STATE EMPLOYEES; COMPENSATION.] (a) 
 45.35  District court referees, judicial officers, court reporters, law 
 45.36  clerks, district administration staff, other than district 
 46.1   administration staff in the second and fourth judicial 
 46.2   districts, guardian ad litem program coordinators and staff, and 
 46.3   other court employees under paragraph (b), are state employees 
 46.4   and are governed by the judicial branch personnel rules adopted 
 46.5   by the supreme court.  The supreme court, in consultation with 
 46.6   the conference of chief judges, shall establish the salary range 
 46.7   of these employees under the judicial branch personnel rules.  
 46.8   In establishing the salary ranges, the supreme court shall 
 46.9   consider differences in the cost of living in different areas of 
 46.10  the state. 
 46.11     (b) The court administrator and employees of the court 
 46.12  administrator who are in the fifth, seventh, eighth, or ninth 
 46.13  judicial district are state employees.  The court administrator 
 46.14  and employees of the court administrator in the remaining 
 46.15  judicial districts become state employees as follows: 
 46.16     (1) effective July 1, 2003, for the second and fourth 
 46.17  judicial districts; 
 46.18     (2) effective July 1, 2004, for the first and third 
 46.19  judicial districts; and 
 46.20     (3) effective July 1, 2005, for the sixth and tenth 
 46.21  judicial districts. 
 46.22     Sec. 9.  Minnesota Statutes 2000, section 487.33, 
 46.23  subdivision 5, is amended to read: 
 46.24     Subd. 5.  [ALLOCATION.] The court administrator shall 
 46.25  provide the county treasurer with the name of the municipality 
 46.26  or other subdivision of government where the offense was 
 46.27  committed which employed or provided by contract the arresting 
 46.28  or apprehending officer and the name of the municipality or 
 46.29  other subdivision of government which employed the prosecuting 
 46.30  attorney or otherwise provided for prosecution of the offense 
 46.31  for each fine or penalty and the total amount of fines or 
 46.32  penalties collected for each municipality or other subdivision 
 46.33  of government.  On or before the last day of each month, the 
 46.34  county treasurer shall pay over to the treasurer of each 
 46.35  municipality or subdivision of government within the county all 
 46.36  fines or penalties for parking violations for which complaints 
 47.1   and warrants have not been issued and one-third of all fines or 
 47.2   penalties collected during the previous month for offenses 
 47.3   committed within the municipality or subdivision of government 
 47.4   from persons arrested or issued citations by officers employed 
 47.5   by the municipality or subdivision or provided by the 
 47.6   municipality or subdivision by contract.  An additional 
 47.7   one-third of all fines or penalties shall be paid to the 
 47.8   municipality or subdivision of government providing prosecution 
 47.9   of offenses of the type for which the fine or penalty is 
 47.10  collected occurring within the municipality or subdivision, 
 47.11  imposed for violations of state statute or of an ordinance, 
 47.12  charter provision, rule or regulation of a city whether or not a 
 47.13  guilty plea is entered or bail is forfeited.  Except as provided 
 47.14  in section 299D.03, subdivision 5, or as otherwise provided by 
 47.15  law, all other fines and forfeitures and all fees and statutory 
 47.16  court costs collected by the court administrator shall be paid 
 47.17  to the county treasurer of the county in which the funds were 
 47.18  collected who shall dispense them as provided by law.  In a 
 47.19  county in a judicial district under section 480.181, subdivision 
 47.20  1, paragraph (b), ~~as added in Laws 1999, chapter 216, article 7,~~ 
 47.21  ~~section 26,~~ all other fines, forfeitures, fees, and statutory 
 47.22  court costs must be paid to the state treasurer for deposit in 
 47.23  the state treasury and credited to the general fund. 
 47.24     Sec. 10.  Minnesota Statutes 2000, section 574.34, 
 47.25  subdivision 1, is amended to read: 
 47.26     Subdivision 1.  [GENERAL.] Fines and forfeitures not 
 47.27  specially granted or appropriated by law shall be paid into the 
 47.28  treasury of the county where they are incurred, except in a 
 47.29  county in a judicial district under section 480.181, subdivision 
 47.30  1, paragraph (b), ~~as added in Laws 1999, chapter 216, article 7,~~ 
 47.31  ~~section 26,~~ the fines and forfeitures must be deposited in the 
 47.32  state treasury and credited to the general fund. 
 47.33     Sec. 11.  [TRANSITIONAL PROVISIONS.] 
 47.34     Subdivision 1.  [HIRING AND SALARY MORATORIUM.] A county 
 47.35  may not increase the number of employees in the county in a 
 47.36  position that is being transferred to state employment under 
 48.1   this act without approval of the supreme court, unless the 
 48.2   increase was authorized before January 1 of the year prior to 
 48.3   the year when the state assumes the cost of district court 
 48.4   administration in the judicial district in which the county is 
 48.5   located.  A county may not increase the salaries of these 
 48.6   employees without approval of the supreme court unless the 
 48.7   increase is made under a plan adopted before January 1 of the 
 48.8   year prior to the year when the state assumes the cost of 
 48.9   district court administration in the judicial district in which 
 48.10  the county is located. 
 48.11     Subd. 2.  [TRANSFER OF PROPERTY.] The title to personal 
 48.12  property that is used by employees being transferred to state 
 48.13  employment under this act in the scope of their employment is 
 48.14  transferred to the state when they become state employees.  
 48.15     Subd. 3.  [RULES.] The supreme court, in consultation with 
 48.16  the conference of chief judges, may adopt rules to implement 
 48.17  this act.  
 48.18     Subd. 4.  [BUDGETS.] Notwithstanding any law to the 
 48.19  contrary, the fiscal year budgets for the year in which the 
 48.20  state assumes the cost of court administration in the judicial 
 48.21  district for the court administrators' offices being transferred 
 48.22  to state employment under this act, including the number of 
 48.23  complement positions and salaries, must be submitted by the 
 48.24  court administrators to the supreme court.  The budgets must 
 48.25  include the current levels of funding and positions at the time 
 48.26  of submission as well as any requests for increases in funding 
 48.27  and positions. 
 48.28     Sec. 12.  [EFFECTIVE DATE.] 
 48.29     Sections 1, 6, 7, 9, and 10 are effective January 1, 2003, 
 48.30  in the second and fourth judicial districts; January 1, 2004, in 
 48.31  the first and third judicial districts; and January 1, 2005, in 
 48.32  the sixth and tenth judicial districts.