1.1                          A bill for an act
  1.2             relating to education; extending the levy 
  1.3             authorization for retired employee health benefits 
  1.4             costs; equalizing the levy for certain qualifying 
  1.5             districts; appropriating money; proposing coding for 
  1.6             new law in Minnesota Statutes, chapter 124. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [124.88] [RETIRED EMPLOYEE HEALTH BENEFITS 
  1.9   REVENUE.] 
  1.10     Subdivision 1.  [REVENUE.] A school district's retired 
  1.11  employee health benefits revenue equals an amount not to exceed 
  1.12  the district's actual expenditures for that year, required under 
  1.13  a collective bargaining agreement, for health insurance or 
  1.14  unreimbursed medical expenses for licensed and nonlicensed 
  1.15  employees who have terminated services in the employing district 
  1.16  and withdrawn from active teaching service or other active 
  1.17  service. 
  1.18     Subd. 2.  [ELIGIBILITY FOR AID.] A school district is 
  1.19  eligible for retired employee health benefits aid if: 
  1.20     (1) the district's adjusted net tax capacity for that year 
  1.21  divided by its actual pupil units for that year is less than 
  1.22  $3,000; 
  1.23     (2) the district's net unappropriated operating fund 
  1.24  balance for the previous June 30, divided by the district's 
  1.25  actual pupil units for that year, is less than $200; and 
  1.26     (3) the district's retired employee health benefits 
  2.1   expenditure per actual pupil unit for that year exceeds $45. 
  2.2      Subd. 3.  [LEVY.] A district's retired employee health 
  2.3   benefits levy is equal to the district's retired employee health 
  2.4   benefits revenue, times the lesser of:  
  2.5      (1) one; or 
  2.6      (2) the quotient derived by dividing the district's 
  2.7   adjusted net tax capacity per pupil unit by $3,500. 
  2.8      If a district does not qualify for aid under subdivision 2, 
  2.9   the district's retired employee health benefits levy ratio is 
  2.10  equal to one. 
  2.11     Subd. 4.  [AID.] A district's retired employee health 
  2.12  benefits aid is the difference between its retired employee 
  2.13  health benefits revenue and its retired employee health benefits 
  2.14  levy.  If a district does not levy the entire amount permitted, 
  2.15  the aid must be reduced in proportion to the actual amount 
  2.16  levied. 
  2.17     Sec. 2.  [EFFECTIVE DATE.] 
  2.18     Section 1 is effective July 1, 1995, and applies to revenue 
  2.19  for the 1996-1997 and later school years.