1.1 	A bill for an act
1.2 	relating to education; modifying referendum revenue;amending Minnesota 
1.3 	Statutes 2008, sections 126C.01, by adding a subdivision; 126C.17, subdivisions 
1.4 	5, 6.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2008, section 126C.01, is amended by adding a 
1.7 	subdivision to read:
1.8 		Subd. 3a. Referendum market value equalizing factor. The referendum market 
1.9 	value equalizing factor equals the quotient derived by dividing the total referendum 
1.10 	market value of all school districts in the state for the year before the year the levy is 
1.11 	certified by the total number of resident pupil units in the state for the current school year.

1.12 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and later.

1.13 	Sec. 2. Minnesota Statutes 2008, section 126C.17, subdivision 5, is amended to read:
1.14 		Subd. 5.Referendum equalization revenue. (a) For fiscal year 2003 and later, 
1.15 	a district's referendum equalization revenue equals the sum of the first tier referendum 
1.16 	equalization revenue and the second tier referendum equalization revenue.
1.17 	(b) A district's first tier referendum equalization revenue equals the district's first 
1.18 	tier referendum equalization allowance times the district's resident marginal cost pupil 
1.19 	units for that year.
1.20 	(c) For fiscal year 2006, a district's first tier referendum equalization allowance 
1.21 	equals the lesser of the district's referendum allowance under subdivision 1 or $500. For 
1.22 	fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser 
1.23 	of the district's referendum allowance under subdivision 1 or $600.
2.1 	For fiscal year 2008 and later,(d) A district's first tier referendum equalization 
2.2 	allowance equals the lesser of the district's referendum allowance under subdivision 1 or 
2.3 	$700 $1,000.
2.4 	(d) (e) A district's second tier referendum equalization revenue equals the district's 
2.5 	second tier referendum equalization allowance times the district's resident marginal cost 
2.6 	pupil units for that year.
2.7 	(e) (f) For fiscal year 2006, a district's second tier referendum equalization allowance 
2.8 	equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent 
2.9 	of the formula allowance, minus the district's first tier referendum equalization allowance. 
2.10 	For fiscal year 2007 and later, a district's second tier referendum equalization allowance 
2.11 	equals the lesser of the district's referendum allowance under subdivision 1 or 26 percent 
2.12 	of the formula allowance, minus the district's first tier referendum equalization allowance.
2.13 	(f) (g) Notwithstanding paragraph (e) (f), the second tier referendum allowance for a 
2.14 	district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or 
2.15 	elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's 
2.16 	referendum allowance under subdivision 1 minus the district's first tier referendum 
2.17 	equalization allowance.

2.18 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
2.19 	and later.

2.20 	Sec. 3. Minnesota Statutes 2008, section 126C.17, subdivision 6, is amended to read:
2.21 		Subd. 6.Referendum equalization levy. (a) For fiscal year 2003 and later,
2.22 	A district's referendum equalization levy equals the sum of the first tier referendum 
2.23 	equalization levy and the second tier referendum equalization levy.
2.24 	(b) A district's first tier referendum equalization levy equals the district's first tier 
2.25 	referendum equalization revenue times the lesser of one or the ratio of the district's 
2.26 	referendum market value per resident marginal cost pupil unit to $476,000 200 percent of 
2.27 	the statewide referendum market value equalizing factor.
2.28 	(c) A district's second tier referendum equalization levy equals the district's second 
2.29 	tier referendum equalization revenue times the lesser of one or the ratio of the district's 
2.30 	referendum market value per resident marginal cost pupil unit to $270,000.

2.31 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
2.32 	and later.