1.1.................... moves to amend H.F. No. 920 as follows:
1.2Page 1, after line 5, insert:

1.3    "Section 1. Minnesota Statutes 2008, section 3.842, subdivision 4a, is amended to read:
1.4    Subd. 4a. Objections to rules. (a) For purposes of this subdivision, "committee"
1.5means the house of representatives policy committee or senate policy committee with
1.6primary jurisdiction over state governmental operations. The commission, the Legislative
1.7Commission on Mandate Reform, or a committee may object to a rule as provided in
1.8this subdivision. If the commission, the Legislative Commission on Mandate Reform,
1.9or a committee objects to all or some portion of a rule because the commission, the
1.10Legislative Commission on Mandate Reform, or a committee considers it to be beyond
1.11the procedural or substantive authority delegated to the agency, including a proposed rule
1.12submitted under section 14.15, subdivision 4, or 14.26, subdivision 3, paragraph (c), the
1.13commission, the Legislative Commission on Mandate Reform, or a committee may file
1.14that objection in the Office of the Secretary of State. The filed objection must contain a
1.15concise statement of the commission's, the Legislative Commission on Mandate Reform,
1.16or a committee's reasons for its action. An objection to a proposed rule submitted by the
1.17commission, the Legislative Commission on Mandate Reform, or a committee under
1.18section 14.15, subdivision 4, or 14.26, subdivision 3, paragraph (c), may not be filed
1.19before the rule is adopted.
1.20(b) The secretary of state shall affix to each objection a certification of the date and
1.21time of its filing and as soon after the objection is filed as practicable shall transmit a
1.22certified copy of it to the agency issuing the rule in question and to the revisor of statutes.
1.23The secretary of state shall also maintain a permanent register open to public inspection of
1.24all objections by the commission, the Legislative Commission on Mandate Reform, or
1.25a committee.
1.26(c) The commission, the Legislative Commission on Mandate Reform, or a
1.27committee shall publish and index an objection filed under this section in the next issue
2.1of the State Register. The revisor of statutes shall indicate the existence of the objection
2.2adjacent to the rule in question when that rule is published in Minnesota Rules.
2.3(d) Within 14 days after the filing of an objection by the commission, the Legislative
2.4Commission on Mandate Reform, or a committee to a rule, the issuing agency shall
2.5respond in writing to the objecting entity. After receipt of the response, the commission,
2.6the Legislative Commission on Mandate Reform, or a committee may withdraw or modify
2.7its objection.
2.8(e) After the filing of an objection by the commission, the Legislative Commission
2.9on Mandate Reform, or a committee that is not subsequently withdrawn, the burden is
2.10upon the agency in any proceeding for judicial review or for enforcement of the rule to
2.11establish that the whole or portion of the rule objected to is valid.
2.12(f) The failure of the commission, the Legislative Commission on Mandate Reform,
2.13or a committee to object to a rule is not an implied legislative authorization of its validity.
2.14(g) In accordance with sections 14.44 and 14.45, the commission, the Legislative
2.15Commission on Mandate Reform, or a committee may petition for a declaratory judgment
2.16to determine the validity of a rule objected to by the commission, the Legislative
2.17Commission on Mandate Reform, or a committee. The action must be started within two
2.18years after an objection is filed in the Office of the Secretary of State.
2.19(h) The commission, the Legislative Commission on Mandate Reform, or a
2.20committee may intervene in litigation arising from agency action. For purposes of this
2.21paragraph, agency action means the whole or part of a rule, or the failure to issue a rule.

2.22    Sec. 2. Minnesota Statutes 2008, section 3.843, is amended to read:
2.24By a vote of a majority of its members, the commission or the Legislative
2.25Commission on Mandate Reform may request any agency issuing rules to hold a
2.26public hearing in respect to recommendations made under section 3.842, including
2.27recommendations made by the commission or the Legislative Commission on Mandate
2.28Reform to promote adequate and proper rules by that agency and recommendations
2.29contained in the commission's biennial report. The agency shall give notice as provided in
2.30section 14.14, subdivision 1, of a hearing under this section, to be conducted in accordance
2.31with sections 14.05 to 14.28. The hearing must be held not more than 60 days after receipt
2.32of the request or within any other longer time period specified by the commission or the
2.33Legislative Commission on Mandate Reform in the request.

3.1    Subdivision 1. Established. The Legislative Commission on Mandate Reform is
3.2established as provided in this section, with the powers and duties given it in sections
3.33.842, subdivision 4a; 3.843; and 3.99 to 3.993.
3.4    Subd. 2. Membership. The commission consists of four senators appointed by the
3.5senate Subcommittee on Committees of the Committee on Rules and Administration,
3.6three senators appointed by the senate minority leader, four state representatives appointed
3.7by the speaker of the house, and three state representatives appointed by the house
3.8of representatives minority leader. The appointing authorities must ensure balanced
3.9geographic representation. Each appointing authority must make appointments as soon as
3.11    Subd. 3. Terms; vacancies. Members of the commission serve for a two-year term
3.12beginning upon appointment and expiring upon appointment of a successor after the
3.13opening of the next regular session of the legislature in the odd-numbered year. A vacancy
3.14in the membership of the commission must be filled for the unexpired term in a manner
3.15that will preserve the representation established by this section.
3.16    Subd. 4. Chair. The commission must meet as soon as practicable after members
3.17are appointed in each odd-numbered year to elect its chair and other officers as it may
3.18determine necessary. A chair serves a two-year term, expiring in the odd-numbered year
3.19after a successor is elected. The chair must alternate biennially between the senate and the
3.20house of representatives.
3.21    Subd. 5. Compensation. Members may be reimbursed for their reasonable
3.22expenses as members of the legislature.
3.23    Subd. 6. Staff. The Legislative Coordinating Commission must provide
3.24administrative support to the commission, including secretarial services, record keeping,
3.25and grants administration.
3.26    Subd. 7. Meetings; procedures; tie votes. The first meeting of the biennium must
3.27be convened by the member designated by the senate majority leader if a senator is to chair
3.28the commission for the biennium, or by the speaker of the house if a state representative
3.29is to chair the commission for the biennium. The commission meets at the call of the
3.30chair. Commission action requires a positive vote of at least four house of representatives
3.31members and at least four senate members.
3.32    Subd. 8. Funding. The Legislative Coordinating Commission shall annually bill the
3.33commissioner of revenue for costs incurred by the Legislative Coordinating Commission
3.34in providing administrative support and to make the grants authorized by the legislative
3.35commission on unnecessary mandates, in an amount not to exceed $100,000 per year. The
4.1commissioner of revenue shall deduct one-half of the certified costs from payments to
4.2counties under section 477A.03, subdivision 2b, and one-half of the certified costs from
4.3payments to cities under section 477A.03, subdivision 2a.

4.6The Legislative Commission on Mandate Reform must solicit from local
4.7governments information on state laws and rules that local governments consider to be
4.8problematic mandates. The commission must review the mandates identified and consider
4.9why each mandate was enacted or adopted, whether the reason for it still exists, the costs
4.10to local governments to comply with the mandate, and whether repeal or modification
4.11of the mandate is appropriate. Before the beginning of each legislative session, the
4.12commission must prepare for introduction a bill to repeal or modify those laws or rules the
4.13commission determines are unnecessary.

4.16Upon recommendation of the Legislative Commission on Mandate Reform,
4.17the commissioner of revenue may make grants to the League of Minnesota Cities,
4.18the Association of Minnesota Counties, Minnesota Association of Townships, other
4.19organizations representing local governments, the Board of Regents of the University of
4.20Minnesota, the Board of Trustees of Minnesota State Colleges and Universities, or other
4.21accredited postsecondary institutions to research and make recommendations on mandate
4.22reform. A grant may be in any amount up to $........ The commissioner must specify the
4.23work to be done, the completion date, and the maximum grant amount, and may specify
4.24any other conditions the commissioner deems necessary or useful.

4.27The Legislative Commission on Mandate Reform may suspend any rule on which
4.28the commission received negative testimony at a public hearing. If any rule is suspended,
4.29the commission must, as soon as possible, place before the legislature, at the next year's
4.30session, a bill to repeal the suspended rule. If the bill is not enacted in that year's session,
4.31the rule is effective upon adjournment of the session unless the agency has repealed it.
4.32If the bill is enacted, the rule is repealed.

4.33    Sec. 7. [3.994] EXPIRATION.
4.34Sections 3.99 to 3.993 expire June 30, 2013.

5.2The first meeting of the Legislative Commission on Mandate Reform must be held
5.3as soon as practicable after all appointments are made. The speaker of the house must
5.4designate a commission member to convene the first meeting. The first commission serves
5.5until a new commission is appointed at the beginning of the next biennium.

5.6    Sec. 9. Minnesota Statutes 2008, section 120B.021, subdivision 1, is amended to read:
5.7    Subdivision 1. Required academic standards. The following subject areas are
5.8required for statewide accountability:
5.9    (1) language arts;
5.10    (2) mathematics;
5.11    (3) science;
5.12    (4) social studies, including history, geography, economics, and government and
5.14    (5) health and physical education, for which locally developed academic standards
5.15apply; and
5.16    (6) the arts, for which statewide or locally developed academic standards apply,
5.17as determined by the school district. Public elementary and middle schools must offer
5.18at least three and require at least two of the following four arts areas: dance; music;
5.19theater; and visual arts. Public high schools, consistent with section 120B.024, paragraph
5.20(a), clause (5), must offer at least three and require at least one of the following five arts
5.21areas: media arts; dance; music; theater; and visual arts.
5.22    The commissioner must submit proposed standards in science and social studies to
5.23the legislature by February 1, 2004.
5.24For purposes of applicable federal law, the academic standards for language arts,
5.25mathematics, and science apply to all public school students, except the very few students
5.26with extreme cognitive or physical impairments for whom an individualized education
5.27plan team has determined that the required academic standards are inappropriate.
5.28An individualized education plan team that makes this determination must establish
5.29alternative standards.
5.30    A school district, no later than the 2007-2008 school year, must adopt graduation
5.31requirements that meet or exceed state graduation requirements established in law or
5.32rule. A school district that incorporates these state graduation requirements before the
5.332007-2008 school year must provide students who enter the 9th grade in or before
5.34the 2003-2004 school year the opportunity to earn a diploma based on existing locally
5.35established graduation requirements in effect when the students entered the 9th grade.
6.1District efforts to develop, implement, or improve instruction or curriculum as a result
6.2of the provisions of this section must be consistent with sections 120B.10, 120B.11,
6.3and 120B.20.
6.4    The commissioner must include the contributions of Minnesota American Indian
6.5tribes and communities as they relate to the academic standards during the review and
6.6revision of the required academic standards.
6.7EFFECTIVE DATE.This section is effective for the 2009-2010 school year and

6.9    Sec. 10. Minnesota Statutes 2008, section 120B.11, subdivision 5, is amended to read:
6.10    Subd. 5. Report. (a) By October 1 of each year, the school board shall use standard
6.11statewide reporting procedures the commissioner develops and adopt a report, consistent
6.12with section 120B.36, subdivision 1, that includes the following:
6.13(1) student achievement goals for meeting state academic standards;
6.14(2) results of local assessment data, and any additional test data;
6.15(3) the annual school district improvement plans including staff development goals
6.16under section 122A.60;
6.17(4) information about district and learning site progress in realizing previously
6.18adopted improvement plans; and
6.19(5) the amount and type of revenue attributed to each education site as defined
6.20in section 123B.04.
6.21(b) The school board shall publish the report in the local newspaper with the largest
6.22circulation in the district, by mail, or by electronic means such as the district Web site. If
6.23electronic means are used, school districts must publish notice of the report in a periodical
6.24of general circulation in the district. School districts must make copies of the report
6.25available to the public on request. The board shall make a copy of the report available to
6.26the public for inspection. The board shall send a copy of the report to the commissioner
6.27of education by October 15 of each year.
6.28(c) The title of the report shall contain the name and number of the school district and
6.29read "Annual Report on Curriculum, Instruction, and Student Achievement." The report
6.30must include at least the following information about advisory committee membership:
6.31(1) the name of each committee member and the date when that member's term
6.33(2) the method and criteria the school board uses to select committee members; and
6.34(3) the date by which a community resident must apply to next serve on the
7.1EFFECTIVE DATE.This section is effective for the 2009-2010 school year and

7.3    Sec. 11. Minnesota Statutes 2008, section 123B.10, subdivision 1, is amended to read:
7.4    Subdivision 1. Budgets; form of notification. (a) Every board must publish revenue
7.5and expenditure budgets for the current year and the actual revenues, expenditures, fund
7.6balances for the prior year and projected fund balances for the current year in a form
7.7prescribed by the commissioner within one week of the acceptance of the final audit by
7.8the board, or November 30, whichever is earlier. The forms prescribed must be designed
7.9so that year to year comparisons of revenue, expenditures and fund balances can be made.
7.10    (b) A school board annually must notify the public of its revenue, expenditures, fund
7.11balances, and other relevant budget information. The board must include the budget
7.12information required by this section in the materials provided as a part of its truth in
7.13taxation hearing, post the materials in a conspicuous place on the district's official Web
7.14site, including a link to the district's school report card on the Department of Education's
7.15Web site, and publish either the information or the address of the district's official Web
7.16site where the information can be found in a qualified newspaper of general circulation
7.17in the district.
7.18EFFECTIVE DATE.This section is effective the day following final enactment."
7.19Page 2, after line 24, insert:

7.20    "Sec. 13. Minnesota Statutes 2008, section 123B.57, subdivision 1, is amended to read:
7.21    Subdivision 1. Health and safety program. (a) To receive health and safety
7.22revenue for any fiscal year a district must submit to the commissioner an application for
7.23aid and levy by the date determined by the commissioner. The application may be for
7.24hazardous substance removal, fire and life safety code repairs, labor and industry regulated
7.25facility and equipment violations, and health, safety, and environmental management,
7.26including indoor air quality management. The application must include a health and safety
7.27program adopted by the school district board. The program must include the estimated
7.28cost, per building, of the program by fiscal year. Upon approval through the adoption of
7.29a resolution by each of an intermediate district's member school district boards and the
7.30approval of the Department of Education, a school district may include its proportionate
7.31share of the costs of health and safety projects for an intermediate district in its application.
7.32(b) Health and safety projects with an estimated cost of $500,000 or more per site,
7.33approved after February 1, 2003, are not eligible for health and safety revenue. Health
7.34and safety projects with an estimated cost of $500,000 or more per site, approved after
7.35February 1, 2003, that meet all other requirements for health and safety funding, are
8.1eligible for alternative facilities bonding and levy revenue according to section 123B.59.
8.2A school board shall not separate portions of a single project into components to qualify
8.3for health and safety revenue, and shall not combine unrelated projects into a single project
8.4to qualify for alternative facilities bonding and levy revenue.
8.5EFFECTIVE DATE.This section is effective July 1, 2009.

8.6    Sec. 14. Minnesota Statutes 2008, section 123B.59, subdivision 2, is amended to read:
8.7    Subd. 2. Facility plan. (a) A district qualifying under subdivision 1, paragraph
8.8(a), must have a ten-year facility plan approved by the commissioner that includes an
8.9inventory of projects and costs that would be eligible for:
8.10(1) health and safety revenue, without restriction as to project size;
8.11(2) disabled access levy; and
8.12(3) deferred capital expenditures and maintenance projects necessary to prevent
8.13further erosion of facilities.
8.14(b) A district qualifying under subdivision 1, paragraph (b), must have a five-year
8.15plan approved by the commissioner that includes an inventory of projects and costs for
8.16health and safety projects with an estimated cost of $500,000 or more per site that would
8.17qualify for health and safety revenue except for the project size limitation in section
8.18123B.57, subdivision 1, paragraph (b).
8.19(c) The school district must:
8.20(1) annually update the plans;
8.21(2) biennially submit a facility maintenance plan; and
8.22(3) indicate whether the district will issue bonds to finance the plan or levy for
8.23the costs.
8.24EFFECTIVE DATE.This section is effective July 1, 2009.

8.25    Sec. 15. Minnesota Statutes 2008, section 123B.71, subdivision 8, is amended to read:
8.26    Subd. 8. Review and comment. A school district, a special education cooperative,
8.27or a cooperative unit of government, as defined in section 123A.24, subdivision 2,
8.28must not initiate an installment contract for purchase or a lease agreement, hold a
8.29referendum for bonds, nor solicit bids for new construction, expansion, or remodeling of
8.30an educational facility that requires an expenditure in excess of $500,000 $1,400,000
8.31per school site prior to review and comment by the commissioner. The commissioner
8.32may exempt a facility maintenance project funded with general education aid and levy,
8.33alternative facilities bonding and levy program, or health and safety revenue from this
8.34provision after reviewing a written request from a school district describing the scope of
9.1work. A school board shall not separate portions of a single project into components to
9.2avoid the requirements of this subdivision.
9.3EFFECTIVE DATE.This section is effective for review and comments requested
9.4on or after July 1, 2009.

9.5    Sec. 16. Minnesota Statutes 2008, section 123B.76, subdivision 3, is amended to read:
9.6    Subd. 3. Expenditures by building. (a) For the purposes of this section, "building"
9.7means education site as defined in section 123B.04, subdivision 1.
9.8(b) Each district shall maintain separate accounts to identify general fund
9.9expenditures for each building to the extent provided by the uniform financial accounting
9.10and reporting standards for school units. All expenditures for regular instruction,
9.11secondary vocational instruction, and school administration must be reported to
9.12the department separately for each building. All expenditures for special education
9.13instruction, instructional support services, and pupil support services provided within a
9.14specific building must be reported to the department separately for each building. Salary
9.15expenditures reported by building must reflect actual salaries for staff at the building and
9.16must not be based on districtwide averages. All other General fund expenditures not
9.17available at the building level through the uniform financial accounting and reporting
9.18standards may be reported by building or on a districtwide basis.
9.19(c) The department must annually report information showing school district general
9.20fund expenditures per pupil by program category for each building and estimated school
9.21district general fund revenue generated by pupils attending each building on its Web
9.22site. For purposes of this report:
9.23(1) expenditures not reported by building shall be allocated among buildings on a
9.24uniform per pupil basis;
9.25(2) basic skills revenue shall be allocated according to section 126C.10, subdivision
9.27(3) secondary sparsity revenue and elementary sparsity revenue shall be allocated
9.28according to section 126C.10, subdivisions 7 and 8;
9.29(4) alternative teacher compensation revenue shall be allocated according to section
9.30122A.415 , subdivision 1;
9.31(5) other general education revenue shall be allocated on a uniform per pupil unit
9.33(6) first grade preparedness aid shall be allocated according to section 124D.081;
9.34(7) state and federal special education aid and Title I aid shall be allocated in
9.35proportion to district expenditures for these programs by building; and
10.1(8) other general fund revenues shall be allocated on a uniform per pupil basis,
10.2except that the department may allocate other revenues attributable to specific buildings
10.3directly to those buildings.
10.4EFFECTIVE DATE.This section is effective for fiscal years 2010 and later.

10.5    Sec. 17. Minnesota Statutes 2008, section 124D.68, subdivision 5, is amended to read:
10.6    Subd. 5. Pupil enrollment. (a) Any eligible pupil may apply to enroll in an eligible
10.7program. Approval of the resident district is not required for:
10.8(1) an eligible pupil to enroll in any eligible program in a nonresident district under
10.9subdivision 3 or 4 or an area learning center established under section 123A.05; or
10.10(2) an eligible pupil under subdivision 2, to enroll in an adult basic education
10.11program approved under section 124D.52.
10.12(b) Notwithstanding paragraph (a), a nonresident district must first approve the
10.13enrollment application of any eligible pupil who was expelled under section 121A.45 for a
10.14reason state in section 124D.03, subdivision 1, paragraph (b).
10.15EFFECTIVE DATE.This section is effective for the 2009-2010 school year and

10.17    Sec. 18. Minnesota Statutes 2008, section 126C.44, is amended to read:
10.19    (a) Each district may make a levy on all taxable property located within the district
10.20for the purposes specified in this section. The maximum amount which may be levied
10.21for all costs under this section shall be equal to $30 multiplied by the district's adjusted
10.22marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
10.23used for directly funding the following purposes or for reimbursing the cities and counties
10.24who contract with the district for the following purposes: (1) to pay the costs incurred for
10.25the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
10.26services in the district's schools; (2) to pay the costs for a drug abuse prevention program
10.27as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
10.28(3) to pay the costs for a gang resistance education training curriculum in the district's
10.29schools; (4) to pay the costs for security in the district's schools and on school property; (5)
10.30to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
10.31opt-in suicide prevention tools, and violence prevention measures taken by the school
10.32district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
10.33school social workers, licensed school psychologists, and licensed alcohol and chemical
10.34dependency counselors to help provide early responses to problems. For expenditures
11.1under clause (1), the district must initially attempt to contract for services to be provided
11.2by peace officers or sheriffs with the police department of each city or the sheriff's
11.3department of the county within the district containing the school receiving the services. If
11.4a local police department or a county sheriff's department does not wish to provide the
11.5necessary services, the district may contract for these services with any other police or
11.6sheriff's department located entirely or partially within the school district's boundaries.
11.7    (b) A school district that is a member of an intermediate school district may
11.8include in its authority under this section the costs associated with safe schools activities
11.9authorized under paragraph (a) for intermediate school district programs. This authority
11.10must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
11.11This authority is in addition to any other authority authorized under this section. Revenue
11.12raised under this paragraph must be transferred to the intermediate school district.
11.13    (c) A school district must set aside at least $3 per adjusted marginal cost pupil
11.14unit of the safe schools levy proceeds for the purposes authorized under paragraph (a),
11.15clause (6). The district must annually certify either that: (1) its total spending on services
11.16provided by the employees listed in paragraph (a), clause (6), is not less than the sum of
11.17its expenditures for these purposes, excluding amounts spent under this section, in the
11.18previous year plus the amount spent under this section; or (2) that the district's full time
11.19equivalent number of employees listed in paragraph (a), clause (6), is not less than the
11.20number for the previous year.
11.21EFFECTIVE DATE.This section is effective for revenue for fiscal years 2010
11.22and later.

11.23    Sec. 19. Minnesota Statutes 2008, section 275.065, subdivision 3, is amended to read:
11.24    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare
11.25and the county treasurer shall deliver after November 10 and on or before November 24
11.26each year, by first class mail to each taxpayer at the address listed on the county's current
11.27year's assessment roll, a notice of proposed property taxes. Upon written request by
11.28the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
11.29instead of on paper or by ordinary mail.
11.30    (b) The commissioner of revenue shall prescribe the form of the notice.
11.31    (c) The notice must inform taxpayers that it contains the amount of property taxes
11.32each taxing authority proposes to collect for taxes payable the following year. In the
11.33case of a town, or in the case of the state general tax, the final tax amount will be its
11.34proposed tax. In the case of taxing authorities required to hold a public meeting under
11.35subdivision 6, the notice must clearly state that each taxing authority, including regional
12.1library districts established under section 134.201, and including the metropolitan taxing
12.2districts as defined in paragraph (i), but excluding all other special taxing districts and
12.3towns, will hold a public meeting to receive public testimony on the proposed budget and
12.4proposed or final property tax levy, or, in case of a school district, on the current budget
12.5and proposed property tax levy. The notice must clearly state for each city, county, school
12.6district, regional library authority established under section 134.201, and metropolitan
12.7taxing districts as defined in paragraph (i), the time and place of the taxing authorities
12.8regularly scheduled meetings in which the budget and levy will be discussed and the final
12.9budget and levy determined. The taxing authorities must provide the county auditor with
12.10the information to be included in the notice. It must clearly state the time and place of
12.11each taxing authority's meeting, provide a telephone number for the taxing authority that
12.12taxpayers may call if they have questions related to the notice, and an address where
12.13comments will be received by mail.
12.14    (d) The notice must state for each parcel:
12.15    (1) the market value of the property as determined under section 273.11, and used
12.16for computing property taxes payable in the following year and for taxes payable in the
12.17current year as each appears in the records of the county assessor on November 1 of the
12.18current year; and, in the case of residential property, whether the property is classified as
12.19homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
12.20which the market values apply and that the values are final values;
12.21    (2) the items listed below, shown separately by county, city or town, and state general
12.22tax, net of the residential and agricultural homestead credit under section 273.1384, voter
12.23approved school levy, other local school levy, and the sum of the special taxing districts,
12.24and as a total of all taxing authorities:
12.25    (i) the actual tax for taxes payable in the current year; and
12.26    (ii) the proposed tax amount.
12.27    If the county levy under clause (2) includes an amount for a lake improvement
12.28district as defined under sections 103B.501 to 103B.581, the amount attributable for that
12.29purpose must be separately stated from the remaining county levy amount.
12.30    In the case of a town or the state general tax, the final tax shall also be its proposed
12.31tax unless the town changes its levy at a special town meeting under section 365.52. If a
12.32school district has certified under section 126C.17, subdivision 9, that a referendum will
12.33be held in the school district at the November general election, the county auditor must
12.34note next to the school district's proposed amount that a referendum is pending and that, if
12.35approved by the voters, the tax amount may be higher than shown on the notice. In the
12.36case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be
13.1listed separately from the remaining amount of the city's levy. In the case of the city of
13.2St. Paul, the levy for the St. Paul Library Agency must be listed separately from the
13.3remaining amount of the city's levy. In the case of Ramsey County, any amount levied
13.4under section 134.07 may be listed separately from the remaining amount of the county's
13.5levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax
13.6under chapter 276A or 473F applies, the proposed tax levy on the captured value or the
13.7proposed tax levy on the tax capacity subject to the areawide tax must each be stated
13.8separately and not included in the sum of the special taxing districts; and
13.9    (3) the increase or decrease between the total taxes payable in the current year and
13.10the total proposed taxes, expressed as a percentage.
13.11    For purposes of this section, the amount of the tax on homesteads qualifying under
13.12the senior citizens' property tax deferral program under chapter 290B is the total amount
13.13of property tax before subtraction of the deferred property tax amount.
13.14    (e) The notice must clearly state that the proposed or final taxes do not include
13.15the following:
13.16    (1) special assessments;
13.17    (2) levies approved by the voters after the date the proposed taxes are certified,
13.18including bond referenda and school district levy referenda;
13.19    (3) a levy limit increase approved by the voters by the first Tuesday after the first
13.20Monday in November of the levy year as provided under section 275.73;
13.21    (4) amounts necessary to pay cleanup or other costs due to a natural disaster
13.22occurring after the date the proposed taxes are certified;
13.23    (5) amounts necessary to pay tort judgments against the taxing authority that become
13.24final after the date the proposed taxes are certified; and
13.25    (6) the contamination tax imposed on properties which received market value
13.26reductions for contamination.
13.27    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or
13.28the county treasurer to deliver the notice as required in this section does not invalidate the
13.29proposed or final tax levy or the taxes payable pursuant to the tax levy.
13.30    (g) If the notice the taxpayer receives under this section lists the property as
13.31nonhomestead, and satisfactory documentation is provided to the county assessor by the
13.32applicable deadline, and the property qualifies for the homestead classification in that
13.33assessment year, the assessor shall reclassify the property to homestead for taxes payable
13.34in the following year.
13.35    (h) In the case of class 4 residential property used as a residence for lease or rental
13.36periods of 30 days or more, the taxpayer must either:
14.1    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
14.2renter, or lessee; or
14.3    (2) post a copy of the notice in a conspicuous place on the premises of the property.
14.4    The notice must be mailed or posted by the taxpayer by November 27 or within
14.5three days of receipt of the notice, whichever is later. A taxpayer may notify the county
14.6treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
14.7which the notice must be mailed in order to fulfill the requirements of this paragraph.
14.8    (i) For purposes of this subdivision, subdivisions and subdivision 5a and 6,
14.9"metropolitan special taxing districts" means the following taxing districts in the
14.10seven-county metropolitan area that levy a property tax for any of the specified purposes
14.11listed below:
14.12    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
14.13473.446 , 473.521, 473.547, or 473.834;
14.14    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
14.16    (3) Metropolitan Mosquito Control Commission under section 473.711.
14.17    For purposes of this section, any levies made by the regional rail authorities in the
14.18county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
14.19398A shall be included with the appropriate county's levy and shall be discussed at that
14.20county's public hearing.
14.21    (j) The governing body of a county, city, or school district may, with the consent
14.22of the county board, include supplemental information with the statement of proposed
14.23property taxes about the impact of state aid increases or decreases on property tax
14.24increases or decreases and on the level of services provided in the affected jurisdiction.
14.25This supplemental information may include information for the following year, the current
14.26year, and for as many consecutive preceding years as deemed appropriate by the governing
14.27body of the county, city, or school district. It may include only information regarding:
14.28    (1) the impact of inflation as measured by the implicit price deflator for state and
14.29local government purchases;
14.30    (2) population growth and decline;
14.31    (3) state or federal government action; and
14.32    (4) other financial factors that affect the level of property taxation and local services
14.33that the governing body of the county, city, or school district may deem appropriate to
15.1    The information may be presented using tables, written narrative, and graphic
15.2representations and may contain instruction toward further sources of information or
15.3opportunity for comment.
15.4EFFECTIVE DATE.This section is effective for taxes payable in 2010 and

15.6    Sec. 20. Minnesota Statutes 2008, section 275.065, subdivision 6, is amended to read:
15.7    Subd. 6. Public hearing; Adoption of budget and levy. (a) For purposes of this
15.8section, the following terms shall have the meanings given:
15.9(1) "Initial hearing" means the first and primary hearing held to discuss the taxing
15.10authority's proposed budget and proposed property tax levy for taxes payable in the
15.11following year, or, for school districts, the current budget and the proposed property tax
15.12levy for taxes payable in the following year.
15.13(2) "Continuation hearing" means a hearing held to complete the initial hearing, if
15.14the initial hearing is not completed on its scheduled date.
15.15(3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final
15.16property tax levy, and, in the case of taxing authorities other than school districts, the final
15.17budget, for taxes payable in the following year.
15.18(b) Between November 29 and December 20, the governing bodies of a city that has a
15.19population over 500, county, metropolitan special taxing districts as defined in subdivision
15.203, paragraph (i), and regional library districts shall each hold an initial public hearing
15.21to discuss and seek public comment on its final budget and property tax levy for taxes
15.22payable in the following year, and the governing body of the school district shall hold an
15.23initial public hearing to review its current budget and proposed property tax levy for taxes
15.24payable in the following year. The metropolitan special taxing districts shall be required to
15.25hold only a single joint initial public hearing, the location of which will be determined by
15.26the affected metropolitan agencies. A city, county, metropolitan special taxing district as
15.27defined in subdivision 3, paragraph (i), regional library district established under section
15.28134.201, or school district is not required to hold a public hearing under this subdivision
15.29unless its proposed property tax levy for taxes payable in the following year, as certified
15.30under subdivision 1, has increased over its final property tax levy for taxes payable in the
15.31current year by a percentage that is greater than the percentage increase in the implicit
15.32price deflator for government consumption expenditures and gross investment for state
15.33and local governments prepared by the Bureau of Economic Analysts of the United States
15.34Department of Commerce for the 12-month period ending March 31 of the current year.
16.1(c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than
16.2Saturday. No initial hearing may be held on a Sunday.
16.3(d) At the initial hearing under this subdivision, the percentage increase in property
16.4taxes proposed by the taxing authority, if any, and the specific purposes for which property
16.5tax revenues are being increased must be discussed. During the discussion, the governing
16.6body shall hear comments regarding a proposed increase and explain the reasons for the
16.7proposed increase. The public shall be allowed to speak and to ask questions. At the public
16.8hearing, the school district must also provide and discuss information on the distribution
16.9of its revenues by revenue source, and the distribution of its spending by program area.
16.10(e) If the initial hearing is not completed on its scheduled date, the taxing authority
16.11must announce, prior to adjournment of the hearing, the date, time, and place for the
16.12continuation of the hearing. The continuation hearing must be held at least five business
16.13days but no more than 14 business days after the initial hearing. A continuation hearing
16.14may not be held later than December 20 except as provided in paragraphs (f) and (g).
16.15A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than
16.16Saturday. No continuation hearing may be held on a Sunday.
16.17(f) The governing body of a county shall hold its initial hearing on the first Thursday
16.18in December each year, and may hold additional initial hearings on other dates before
16.19December 20 if necessary for the convenience of county residents. If the county needs a
16.20continuation of its hearing, the continuation hearing shall be held on the third Tuesday
16.21in December. If the third Tuesday in December falls on December 21, the county's
16.22continuation hearing shall be held on Monday, December 20.
16.23(g) The metropolitan special taxing districts shall hold a joint initial public hearing
16.24on the first Wednesday of December. A continuation hearing, if necessary, shall be held on
16.25the second Wednesday of December even if that second Wednesday is after December 10.
16.26(h) The county auditor shall provide for the coordination of initial and continuation
16.27hearing dates for all school districts and cities within the county to prevent conflicts under
16.28clauses (i) and (j).
16.29(i) By August 10, each school board and the board of the regional library district
16.30shall certify to the county auditors of the counties in which the school district or regional
16.31library district is located the dates on which it elects to hold its initial hearing and any
16.32continuation hearing. If a school board or regional library district does not certify these
16.33dates by August 10, the auditor will assign the initial and continuation hearing dates. The
16.34dates elected or assigned must not conflict with the initial and continuation hearing dates
16.35of the county or the metropolitan special taxing districts.
17.1(j) By August 20, the county auditor shall notify the clerks of the cities within the
17.2county of the dates on which school districts and regional library districts have elected to
17.3hold their initial and continuation hearings. At the time a city certifies its proposed levy
17.4under subdivision 1 it shall certify the dates on which it elects to hold its initial hearing and
17.5any continuation hearing. Until September 15, the first and second Mondays of December
17.6are reserved for the use of the cities. If a city does not certify its hearing dates by
17.7September 15, the auditor shall assign the initial and continuation hearing dates. The dates
17.8elected or assigned for the initial hearing must not conflict with the initial hearing dates
17.9of the county, metropolitan special taxing districts, regional library districts, or school
17.10districts within which the city is located. To the extent possible, the dates of the city's
17.11continuation hearing should not conflict with the continuation hearing dates of the county,
17.12metropolitan special taxing districts, regional library districts, or school districts within
17.13which the city is located. This paragraph does not apply to cities of 500 population or less.
17.14(k) The county initial hearing date and the city, metropolitan special taxing district,
17.15regional library district, and school district initial hearing dates must be designated on
17.16the notices required under subdivision 3. The continuation hearing dates need not be
17.17stated on the notices.
17.18(l) At a subsequent hearing, each county, school district, city over 500 population,
17.19and metropolitan special taxing district may amend its proposed property tax levy
17.20and must adopt a final property tax levy. Each county, city over 500 population, and
17.21metropolitan special taxing district may also amend its proposed budget and must adopt a
17.22final budget at the subsequent hearing. The final property tax levy must be adopted prior
17.23to adopting the final budget. A school district is not required to adopt its final budget at the
17.24subsequent hearing. The subsequent hearing of a taxing authority must be held on a date
17.25subsequent to the date of the taxing authority's initial public hearing. If a continuation
17.26hearing is held, the subsequent hearing must be held either immediately following the
17.27continuation hearing or on a date subsequent to the continuation hearing. The subsequent
17.28hearing may be held at a regularly scheduled board or council meeting or at a special
17.29meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing
17.30of a taxing authority does not have to be coordinated by the county auditor to prevent a
17.31conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any
17.32other taxing authority. All subsequent hearings must be held prior to five working days
17.33after December 20 of the levy year. The date, time, and place of the subsequent hearing
17.34must be announced at the initial public hearing or at the continuation hearing.
17.35(m) (a) The property tax levy certified under section 275.07 by a city of any
17.36population, county, metropolitan special taxing district, regional library district, or school
18.1district must not exceed the proposed levy determined under subdivision 1, except by an
18.2amount up to the sum of the following amounts:
18.3(1) the amount of a school district levy whose voters approved a referendum to
18.4increase taxes under section 123B.63, subdivision 3, or 126C.17, subdivision 9, after
18.5the proposed levy was certified;
18.6(2) the amount of a city or county levy approved by the voters after the proposed
18.7levy was certified;
18.8(3) the amount of a levy to pay principal and interest on bonds approved by the
18.9voters under section 475.58 after the proposed levy was certified;
18.10(4) the amount of a levy to pay costs due to a natural disaster occurring after the
18.11proposed levy was certified, if that amount is approved by the commissioner of revenue
18.12under subdivision 6a;
18.13(5) the amount of a levy to pay tort judgments against a taxing authority that become
18.14final after the proposed levy was certified, if the amount is approved by the commissioner
18.15of revenue under subdivision 6a;
18.16(6) the amount of an increase in levy limits certified to the taxing authority by the
18.17commissioner of education or the commissioner of revenue after the proposed levy was
18.18certified; and
18.19(7) the amount required under section 126C.55.
18.20(n) (b) This subdivision does not apply to towns and special taxing districts other
18.21than regional library districts and metropolitan special taxing districts.
18.22(o) (c) Notwithstanding the requirements of this section, the employer is required to
18.23meet and negotiate over employee compensation as provided for in chapter 179A.
18.24EFFECTIVE DATE.This section is effective for taxes payable in 2010 and

18.26    Sec. 21. Laws 2008, chapter 363, article 2, section 46, subdivision 1, is amended to
18.28    Subdivision 1. Capital account transfers. Notwithstanding any law to the contrary,
18.29on June 30, of 2008, 2009, and 2010, a school district may transfer money from its
18.30reserved for operating capital account to its undesignated balance in the general fund. The
18.31amount transferred by any school district must not exceed $51 times the district's adjusted
18.32marginal cost pupil units for the second preceding fiscal year 2007. This transfer annually
18.33may occur only after the school board has adopted a written resolution stating the amount
18.34of the transfer and declaring that the school district's operating capital needs are being met.
18.35EFFECTIVE DATE.This section is effective the day following final enactment."
19.1Page 2, line 26, before "Minnesota" insert "(a)"
19.2Page 2, after line 26, insert
19.3"(b) Minnesota Statutes 2008, section 275.065, subdivisions 5a, 6b, 6c, 8, 9, and 10,
19.4are repealed."
19.5Page 2, line 27, after the first period insert "Paragraph (a) of" and before the second
19.6period, insert "and paragraph (b) is effective for taxes payable in 2010 and thereafter."
19.7Renumber the sections in sequence and correct the internal references
19.8Amend the title accordingly