1.1                          A bill for an act
  1.2             relating to taxation; establishing a tax study 
  1.3             commission to study state and local fiscal relations; 
  1.4             appropriating money. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [TAX STUDY COMMISSION; STATE AND LOCAL FISCAL 
  1.7   RELATIONS.] 
  1.8      Subdivision 1.  [CREATION; MEMBERSHIP.] (a) A tax study 
  1.9   commission is established to study state and local fiscal 
  1.10  relations in Minnesota and to make recommendations to the 1999 
  1.11  legislature.  The study shall be completed and findings reported 
  1.12  to the legislature by February 1, 1999. 
  1.13     (b) The commission consists of 30 members who serve at the 
  1.14  pleasure of the appointing authority as follows: 
  1.15     (1) ten legislators; five members of the senate, including 
  1.16  two members of the minority party, appointed by the subcommittee 
  1.17  on committees of the committee on rules and administration; and 
  1.18  five members of the house of representatives, including two 
  1.19  members of the minority party, appointed by the speaker; 
  1.20     (2) two representatives of the executive branch of state 
  1.21  government, appointed by the governor; 
  1.22     (3) three county officials, appointed by the governor from 
  1.23  a slate of at least six county officials submitted by the 
  1.24  association of Minnesota counties; 
  1.25     (4) three city officials, appointed by the governor from a 
  2.1   slate of at least six city officials submitted by the league of 
  2.2   Minnesota cities; 
  2.3      (5) three school district officials, appointed by the 
  2.4   governor from a slate of at least six school district officials 
  2.5   submitted by the Minnesota school board association; 
  2.6      (6) one town official, appointed by the governor from a 
  2.7   slate of at least two submitted by the Minnesota association of 
  2.8   township officers; and 
  2.9      (7) eight members of the public, four of whom shall be 
  2.10  appointed by the senate committee on rules and administration 
  2.11  and four of whom shall be appointed by the speaker of the house 
  2.12  of representatives. 
  2.13     Subd. 2.  [SCOPE OF STUDY.] The tax study commission is to 
  2.14  study the state and local finance system, including, but not 
  2.15  limited to, the following subjects: 
  2.16     (1) the allocation of functions between state and local 
  2.17  governments; 
  2.18     (2) the relationship between spending decisions and taxing 
  2.19  authority; 
  2.20     (3) the efficiency and equity of the system, and how it 
  2.21  addresses tax disparities between property classes, and how it 
  2.22  recognizes ability to pay; 
  2.23     (4) the responsiveness of the system to the costs imposed 
  2.24  on local governments by state mandates; 
  2.25     (5) the relationship between state and local taxes; and 
  2.26     (6) the adequacy of the tax system in addressing emerging 
  2.27  technologies, such as telecommunications. 
  2.28     Subd. 3.  [RECOMMENDATIONS.] The tax study commission shall 
  2.29  make recommendations regarding the state and local finance 
  2.30  system, recommending ways to make the system: 
  2.31     (1) simpler and more understandable to the average citizen; 
  2.32     (2) more accountable, in terms of the relationship between 
  2.33  spending decisions and taxing authority; 
  2.34     (3) more reliable, predictable, and stable over time; and 
  2.35     (4) more immune from the effects of the business cycle and 
  2.36  other risks. 
  3.1      Subd. 4.  [STAFF.] The department of revenue and 
  3.2   legislative staff shall provide administrative and staff 
  3.3   assistance when requested by the advisory council. 
  3.4      Subd. 5.  [COOPERATION BY OTHER AGENCIES.] The state 
  3.5   auditor and any other state department or agency shall, upon 
  3.6   request by the advisory council, provide data or other 
  3.7   information that is collected or possessed by their agencies and 
  3.8   that is necessary or useful in conducting the study and 
  3.9   preparing the report required by this section. 
  3.10     Subd. 6.  [APPROPRIATION.] $....... is appropriated from 
  3.11  the general fund for fiscal years 1998 and 1999 to the 
  3.12  legislative coordinating commission to pay the expenses of the 
  3.13  advisory council.  This appropriation may be used to contract 
  3.14  with the Humphrey Institute of Public Affairs' state and local 
  3.15  policy program, or to hire a consultant or consultants to 
  3.16  prepare all or part of the study, and is fully available in 
  3.17  either fiscal year. 
  3.18     Sec. 2.  [EFFECTIVE DATE.] 
  3.19     Section 1 is effective the day after final enactment.