1.1                          A bill for an act 
  1.2             relating to education; modifying the referendum 
  1.3             conversion adjustment for interest earned; amending 
  1.4             Laws 2001, First Special Session chapter 6, article 1, 
  1.5             section 53. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Laws 2001, First Special Session chapter 6, 
  1.8   article 1, section 53, is amended to read: 
  1.9      Sec. 53.  [REFERENDUM CONVERSION ADJUSTMENT FOR INTEREST 
  1.10  EARNED.] 
  1.11     (a) The commissioner of children, families, and learning 
  1.12  shall calculate the change in estimated net interest earnings 
  1.13  for each district attributable to the repeal of the general 
  1.14  education levy as provided in this section. 
  1.15     (b) ~~The interest calculations must assume an annual~~ 
  1.16  ~~interest rate of five percent, and must be based on the amount~~ 
  1.17  ~~by which the district's cumulative net general education levy~~ 
  1.18  ~~receipts for taxes payable in 2000, based on the assumptions~~ 
  1.19  ~~specified in Minnesota Statutes, section 127A.45, subdivision 8,~~ 
  1.20  ~~exceeds the cumulative amount that would have been guaranteed~~ 
  1.21  ~~for each payment in fiscal year 2001, as defined in Minnesota~~ 
  1.22  ~~Statutes, section 127A.45, subdivisions 2 and 3, calculated~~ 
  1.23  ~~using data as of the June 20, 2001, payment, and assuming that~~ 
  1.24  ~~the repeal of the general education levy was effective for~~ 
  1.25  ~~fiscal year 2001.  The commissioner shall divide the interest~~ 
  2.1   ~~revenue in fiscal year 2001 by the number of resident marginal~~ 
  2.2   ~~cost pupil units in fiscal year 2001.~~  The interest calculations 
  2.3   must assume an annual interest rate of five percent, and must be 
  2.4   based on the difference between (1) the district's estimated aid 
  2.5   payments for fiscal year 2003, based upon the payment schedule 
  2.6   specified in Minnesota Statutes, section 127A.45, and (2) the 
  2.7   amount that the district's estimated aid payments for fiscal 
  2.8   year 2003 would have been had the general education levy for 
  2.9   fiscal year 2003 been set at the amount of the district's 
  2.10  general education levy for taxes payable in 2001.  For the 
  2.11  purposes of this section, the general education levy must not 
  2.12  include the education homestead credit or the education 
  2.13  agricultural credit. 
  2.14     (c) ~~The amount calculated in paragraph (a) may be converted~~ 
  2.15  ~~to an additional referendum allowance according to Minnesota~~ 
  2.16  ~~Statutes, section 126C.17, subdivision 11.~~  The amount 
  2.17  calculated in paragraph (b), less any interest conversion 
  2.18  revenue calculated for the district under Laws 2001, First 
  2.19  Special Session chapter 6, article 1, section 53, is added to 
  2.20  the district's levy limitation for taxes payable in 2003 through 
  2.21  2006. 
  2.22     (d) ~~Any additional referendum allowance as a result of a~~ 
  2.23  ~~conversion under paragraph (b) shall be included in the~~ 
  2.24  ~~referendum conversion allowance used to determine the referendum~~ 
  2.25  ~~allowance limit under Minnesota Statutes, section 126C.17,~~ 
  2.26  ~~subdivision 2.~~  The commissioner must calculate an adjustment 
  2.27  for taxes payable in 2002 for each school district as though 
  2.28  this section were in effect for that tax year. 
  2.29     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.30  fiscal year 2003 and later.