1.1 	A bill for an act
1.2 	relating to education finance; removing obsolete language from the calculation of 
1.3 	referendum equalization revenue;amending Minnesota Statutes 2012, section 
1.4 	126C.17, subdivision 5.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2012, section 126C.17, subdivision 5, is amended to read:
1.7 		Subd. 5.Referendum equalization revenue. (a) For fiscal year 2003 and later,
1.8 	 A district's referendum equalization revenue equals the sum of the first tier referendum 
1.9 	equalization revenue and the second tier referendum equalization revenue.
1.10 	(b) A district's first tier referendum equalization revenue equals the district's first 
1.11 	tier referendum equalization allowance times the district's resident marginal cost pupil 
1.12 	units for that year.
1.13 	(c) For fiscal year 2006, a district's first tier referendum equalization allowance 
1.14 	equals the lesser of the district's referendum allowance under subdivision 1 or $500. For 
1.15 	fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser 
1.16 	of the district's referendum allowance under subdivision 1 or $600.
1.17 	For fiscal year 2008 and later, A district's first tier referendum equalization allowance 
1.18 	equals the lesser of the district's referendum allowance under subdivision 1 or $700.
1.19 	(d) A district's second tier referendum equalization revenue equals the district's 
1.20 	second tier referendum equalization allowance times the district's resident marginal cost 
1.21 	pupil units for that year.
1.22 	(e) For fiscal year 2006, a district's second tier referendum equalization allowance 
1.23 	equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent 
1.24 	of the formula allowance, minus the district's first tier referendum equalization allowance. 
2.1 	For fiscal year 2007 and later, A district's second tier referendum equalization allowance 
2.2 	equals the lesser of the district's referendum allowance under subdivision 1 or 26 percent 
2.3 	of the formula allowance, minus the district's first tier referendum equalization allowance.
2.4 	(f) Notwithstanding paragraph (e), the second tier referendum allowance for a 
2.5 	district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or 
2.6 	elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's 
2.7 	referendum allowance under subdivision 1 minus the district's first tier referendum 
2.8 	equalization allowance.

2.9 	EFFECTIVE DATE. This section is effective July 1, 2013.