2008 Legislative Session _ 2008

Committee: House Education
Tuesday, February 12, 2008

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Bradford
P    Buckingham
P    DeVries
P    Elliott
P    Gilson
P    Hackl
P    Hills
P    McLaughlin, Vice-Chair
P    Novstrup (Al)
P    Olson (Ryan)
P    Thompson
P    Van Norman
P    Weems
P    Wick
P    Heineman, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Heineman.

MOTION:     TO APPROVE THE MINUTES OF FEBRUARY 7, 2008

Moved by:    Weems
Second by:    Hills
Action:    Prevailed by voice vote.

        
HB 1279: align math and science education with South Dakota's historic and unique scientific opportunities, to direct the Department of Education to initiate Project Lead the Way, to develop a clearinghouse for certain educational opportunities, and to provide for an independent analysis of the state's content standards, and to make an

appropriation therefor.

Presented by:    Representative Larry Rhoden
Proponents:    Representative Thomas Deadrick
        Dick Hall, EDEC, Sioux Falls (Handouts 1&2)
        Janelle Toman, Bd of Regents
Opponents:    Tamara Darnall, Bureau of Finance and Management

MOTION:     DO PASS HB 1279

Moved by:    Weems
Second by:    McLaughlin
Action:    Prevailed by roll call vote. (13-0-2-0)

Voting Yes:    Bradford, Buckingham, DeVries, Elliott, Gilson, Hackl, Hills, McLaughlin, Novstrup (Al), Olson (Ryan), Thompson, Van Norman, Heineman

Excused:    Weems, Wick

        
HB 1224: provide for the funding of certain reduced tuition programs for veterans and teachers.

Presented by:    Representative Mike Buckingham
Proponents:    Mitch Richter, Troops for Teachers (Handout #3)

MOTION:     AMEND HB 1224

1224ca

     On page 1 of the printed bill, delete lines 12 to 15, inclusive.

     On page 2, delete lines 1 to 4, inclusive.


Moved by:    Elliott
Second by:    Gilson
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1224 AS AMENDED

Moved by:    Olson (Ryan)
Second by:    Thompson
Action:    Prevailed by roll call vote. (14-0-1-0)

Voting Yes:    Bradford, Buckingham, DeVries, Elliott, Gilson, Hackl, Hills, McLaughlin, Novstrup (Al), Olson (Ryan), Thompson, Van Norman, Weems, Heineman

Excused:    Wick

MOTION:     AMEND TITLE OF HB 1224

1224cta

     On page 1, line 2, of the printed bill, delete "and teachers".


Moved by:    Olson (Ryan)
Second by:    McLaughlin
Action:    Prevailed by voice vote.

        
HB 1214: create a required minimum salary for teachers who teach in school districts that receive state aid funding.

Presented by:    Representative Ed McLaughlin (Handout #4)
Proponents:    Dianna Miller, ESD + 6
Opponents:    Jim Hutmacher, SD Coalition of Schools
        Bryce Healy, SDEA

MOTION:     DEFER HB 1214 TO THE 36TH LEGISLATIVE DAY

Moved by:    Bradford
Second by:    DeVries
Action:    Prevailed by roll call vote. (12-3-0-0)

Voting Yes:    Bradford, Buckingham, DeVries, Gilson, Hackl, Hills, Novstrup (Al), Olson (Ryan), Thompson, Van Norman, Weems, Wick

Voting No:    Elliott, McLaughlin, Heineman

GAVEL PASSED TO VICE-CHAIR MCLAUGHLIN.

        
HB 1268: establish a statewide minimum teacher salary that school districts must meet within five years and to allow school districts to receive funds through the teachers compensation assistance program to meet the minimum salary requirement.

Presented by:    Representative Kristi Noem
Proponents:    Dianna Miller, ESD + 6
Opponents:    Jim Hutmacher, SD Coalition of Schools
        Bryce Healy, SDEA

MOTION:     AMEND HB 1268

Proponent: Representative Russell Olson

1268ca

On the printed bill, delete everything after the enacting clause and insert:

     "      Section 1. That § 13-42-27 be amended to read as follows:

     13-42-27.   Pursuant to § 13-1-12.1, the Board of Education shall examine programs that prepare and certify school personnel, identify deficiencies, and establish revised standards designed to deliver more qualified staff to classrooms. The board's review shall identify ways to streamline the alternative certification process whereby persons holding a bachelor's degree or higher can be certified to teach in elementary and secondary schools. The board shall also establish revised standards for the alternative certification of career and technical education teachers to allow persons highly skilled in a particular area to teach in that particular area in accredited schools in the state on more than a provisional basis. "



Moved by:    Hills
Second by:    Wick
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION AMEND HB 1268

1268cb

On the printed bill, delete everything after the enacting clause and insert:

     "      Section 1. That § 13-42-27 be amended to read as follows:

     13-42-27.   Pursuant to § 13-1-12.1, the Board of Education shall examine programs that prepare and certify school personnel, identify deficiencies, and establish revised standards designed to deliver more qualified staff to classrooms. The board's review shall identify ways to streamline the alternative certification process whereby persons holding a bachelor's degree or higher can be

certified to teach in elementary and secondary schools. The board shall also establish revised standards for the alternative certification of career and technical education teachers to allow persons highly skilled in a particular area to teach in that particular area in accredited schools in the state on more than a provisional basis without having to complete education course work in pedagogy and other related fields. "



Moved by:    Buckingham
Second by:    Wick
Action:    Failed by roll call vote. (6-9-0-0)

Voting Yes:    Buckingham, Hackl, McLaughlin, Novstrup (Al), Weems, Wick

Voting No:    Bradford, DeVries, Elliott, Gilson, Hills, Olson (Ryan), Thompson, Van Norman, Heineman

MOTION:     AMEND HB 1268

1268ca

On the printed bill, delete everything after the enacting clause and insert:

     "      Section 1. That § 13-42-27 be amended to read as follows:

     13-42-27.   Pursuant to § 13-1-12.1, the Board of Education shall examine programs that prepare and certify school personnel, identify deficiencies, and establish revised standards designed to deliver more qualified staff to classrooms. The board's review shall identify ways to streamline the alternative certification process whereby persons holding a bachelor's degree or higher can be certified to teach in elementary and secondary schools. The board shall also establish revised standards for the alternative certification of career and technical education teachers to allow persons highly skilled in a particular area to teach in that particular area in accredited schools in the state on more than a provisional basis. "



Moved by:    Hills
Second by:    Wick
Action:    Prevailed by roll call vote. (8-7-0-0)

Voting Yes:    Buckingham, Elliott, Hackl, Hills, McLaughlin, Novstrup (Al), Weems, Wick

Voting No:    Bradford, DeVries, Gilson, Olson (Ryan), Thompson, Van Norman, Heineman

MOTION:     DO PASS HB 1268 AS AMENDED

Moved by:    Buckingham
Second by:    Wick
Action:    Failed by roll call vote. (7-8-0-0)

Voting Yes:    Buckingham, Hackl, Hills, McLaughlin, Novstrup (Al), Weems, Wick

Voting No:    Bradford, DeVries, Elliott, Gilson, Olson (Ryan), Thompson, Van Norman, Heineman

MOTION:     DEFER HB 1268 TO THE 36TH LEGISLATIVE DAY

Moved by:    Olson (Ryan)
Second by:    Bradford
Action:    Prevailed by roll call vote. (12-3-0-0)

Voting Yes:    Bradford, Buckingham, DeVries, Elliott, Gilson, Hackl, McLaughlin, Novstrup (Al), Olson (Ryan), Thompson, Wick, Heineman

Voting No:    Hills, Van Norman, Weems

        
HB 1262: enhance the salaries of teachers in South Dakota.

Presented by:    Representative Mike Buckingham
Proponents:    Melody Schopp, Department of Education
        Dianna Miller, ESD + 6
        Rick Melmer, Department of Education
Opponents:    Jim Hutmacher, SD Coalition of Schools
        Bryce Healy, SDEA

MOTION:     AMEND HB 1262

1262ca

On the printed bill, delete everything after the enacting clause and insert:

     "
     Section 1. There is hereby established a three-level classification system for certified teachers and school service specialists that provides for a minimum annual salary for each certified teacher or school service specialist within each level and requires a teacher or school service specialist to demonstrate increased competency and professional growth in order to progress from one level to

the next within the system. For the purposes of this Act, a school service specialist is a school counselor, school library media education specialist, school psychologist, speech/language pathologist, school social worker, special education director, or curriculum director.

     Section 2. For the purposes of this Act, on July 1, 2009, any certified teacher with less than three years of teaching experience or any school service specialist with less than three years of experience providing direct services to students is classified at Level I. On July 1, 2009, any certified teacher with three or more years of teaching experience or any school service specialist with three or more years of experience providing direct services to students is classified at Level II, and shall receive a salary increase of one thousand dollars above the salary the teacher or school service specialist would have otherwise received for the current school fiscal year.
    On July 1, 2010, any certified teacher with six or more years of teaching experience who meets the qualifications in subdivisions (1) and (3) of section 6 of this Act is classified at Level III, and shall receive a salary increase of four thousand dollars above the salary the teacher would have otherwise received for the current school fiscal year. On July 1, 2010, any school service specialist with six or more years of experience providing direct services to students who meets the qualifications in subdivisions (1) and (3) of section 8 of this Act is classified at Level III, and shall receive a salary increase of four thousand dollars above the salary the school service specialist would have otherwise received for the current school fiscal year.

     Section 3. The minimum annual salary for any teacher or school service specialist at Level I is as follows:

             (1)    For school fiscal year 2010, the minimum annual salary is twenty-eight thousand dollars;
            
             (2)    For school fiscal year 2011, the minimum annual salary is thirty thousand dollars;
            
             (3)    For school fiscal year 2012, the minimum annual salary is thirty-two thousand dollars;
            
             (4)    For school fiscal year 2013, the minimum annual salary is thirty-four thousand five hundred dollars; and
            
             (5)    For school fiscal year 2014, the minimum annual salary is thirty-six thousand five hundred dollars; and
            
             (6)    For school fiscal year 2015 and thereafter, the minimum annual salary is thirty-nine thousand dollars.
    
    Any teacher or school service specialist who progresses from Level I to Level II shall receive a salary increase of one thousand dollars above the salary the teacher or school service specialist would have otherwise received for the current school fiscal year. Any teacher or school service specialist who progresses from Level II to Level III shall receive a salary increase of four thousand dollars

above the salary the teacher or school service specialist would have otherwise received for the current school fiscal year.

     Section 4. In order to advance from Level I to Level II, a teacher shall:

             (1)    Complete a mentoring or induction program approved by the Department of Education;
            
             (2)    Demonstrate competency, as determined by an administrator trained pursuant to section 13 of this Act, in professional growth and classroom achievement through the annual evaluation process required in section 10 of this Act. Classroom achievement may be measured using standardized achievement tests, classroom exams, student observations, and other assessments;
            
             (3)    Complete three years of teaching at Level I; and
            
             (4)    Demonstrate the increased competency required for Level II by passing an assessment approved by the Department of Education that measures the skills of beginning teachers in a classroom setting.

    In order to maintain teacher certification pursuant to § 13-42-3, a Level I teacher shall progress to Level II no later than the fifth year of teaching.

     Section 5. At Level II, a teacher shall:
            
             (1)    Submit a professional development plan and complete the hours of coursework necessary to maintain teacher certification pursuant to § 13-42-3; and
            
             (2)    Demonstrate competency, as determined by an administrator trained pursuant to section 13 of this Act, in professional growth and classroom achievement through the annual evaluation process required in section 10 of this Act. Classroom achievement may be measured using standardized achievement tests, classroom exams, student observations, and other assessments.

     Section 6. Once a teacher progresses to Level II, the teacher may remain at that level or progress to Level III. In order to progress to Level III, a teacher shall:
            
             (1)    Earn an advanced degree including a master's, specialist's, or doctorate or obtain a national certification as approved by the Board of Education based on the criteria established pursuant to section 15 of this Act;

             (2)    Complete at least three years of teaching at Level II; and
            
             (3)    Demonstrate competency, as determined by an administrator trained pursuant to section 13 of this Act, in professional growth and classroom achievement through the annual evaluation process required in section 10 of this Act. Classroom achievement may be measured using standardized achievement tests, classroom exams, student observations, and other assessments.
    
     Section 7. In order to advance from Level I to Level II, a school service specialist shall:
            
             (1)    Complete a mentoring or induction program approved by the Department of Education; and

             (2)    Demonstrate competency, as determined by an administrator trained pursuant to section 13 of this Act, through the annual evaluation process required in section 12 of this Act.

     Section 8. Once a school service specialist progresses to Level II, the school service specialist may remain at that level or progress to Level III. In order to progress to Level III, a school service specialist shall:
            
             (1)    Earn an advanced degree including a master's, specialist's, or doctorate or obtain a national certification as approved by the Board of Education based on the criteria established pursuant to section 15 of this Act;

             (2)    Complete at least three years of providing direct services to students at Level II; and

             (3)    Demonstrate competency, as determined by an administrator trained pursuant to section 13 of this Act, through the annual evaluation process required in section 12 of this Act.

     Section 9. In addition to the minimum salaries established in this Act, any school district that hires a teacher or school service specialist in an area of need shall pay that teacher or school service specialist a signing bonus of five thousand dollars. The secretary of education shall determine the areas of need for each school year based upon teacher or school service specialist shortages, geography, and other factors and report those areas of need to each school district.

     Section 10. The school board of each local school district shall implement an evaluation system for the school district's certified teachers that includes observation of each certified teacher in the teacher's workplace.

     Section 11. The certified teacher evaluation system shall:

             (1)    Include professional performance standards established pursuant to section 11 of this Act;

             (2)    Require at least two observations during each school year for the evaluation of each Level

I teacher as defined in this Act;

            
             (3)    Require at least one observation during each school year for the evaluation of each Level II or Level III teacher as defined in this Act who met the school district performance standards during the previous school year; and
            
             (4)    Include an improvement plan for any certified teacher whose performance does not meet the school district's performance standards, unless the teacher's performance is just cause for termination pursuant to § 13-43-6.1.

     Section 12. The school board of each local school district shall also implement an evaluation system for the school district's school service specialists that includes annual evaluations of all school service specialists within the district based upon the criteria established by the Board of Education pursuant to section 15 of this Act.

     Section 13. Each school district shall, at least once a year, provide training to the certified teachers and school service specialists who are subject to the evaluation systems. The training shall address the procedures of the evaluation systems, the standards that the school district uses to evaluate the performance of its certified teachers and school service specialists, and any other appropriate topics as determined by the school district. Each school district shall also provide annual training to administrators on how to conduct the evaluations required in section 10 and 12 of this Act.
         
     Section 14. The Department of Education shall promulgate rules pursuant to chapter 1-26 establishing the criteria the department will use to approve school district mentoring and induction programs, establishing the assessment required of teachers progressing to Level II, and providing for the performance standards that school districts will use to evaluate certified teachers.

     Section 15. The Board of Education shall promulgate rules pursuant to chapter 1-26 establishing the criteria the school districts will use to evaluate school service specialists and to establish the criteria and the annual review process that the board will use to determine the national certifications that will be recognized to allow a teacher or school service specialist to progress to Level III.

     Section 16. That § 13-43-6.1 be amended to read as follows:

     13-43-6.1.   A teacher may be terminated, by the school board, at any time for just cause, including breach of contract, poor performance, incompetency, gross immorality, unprofessional conduct, insubordination, neglect of duty, or the violation of any policy or regulation of the school district. A school district may nonrenew a teacher who is in or beyond the fourth consecutive term of employment as a teacher with the school district pursuant to § 13-43-6.3 for just cause, including breach of contract, poor performance, incompetency, gross immorality, unprofessional conduct, insubordination, neglect of duty, or the violation of any policy or regulation of the school district.



     Section 17. That § 13-43-6.2 be repealed.

     13-43-6.2.   If nonrenewal of a teacher is contemplated under § 13-43-6.1, the superintendent or chief executive officer shall give written notice of an intention to recommend nonrenewal to the teacher and the school board; a written statement of the reasons for the recommendation; access to the employment records of the teacher; the opportunity to the teacher for a hearing before the school board to present reasons in person or in writing why the nonrenewal should not occur; and the opportunity to be represented. The teacher shall request the hearing as provided in § 13-43-6.9. The school board shall conduct the hearing not sooner than fourteen days, nor later than forty-five days, after receipt of the teacher's request for hearing. The parties may waive the time limitations provided for in this section.

     Section 18. That § 13-43-6.3 be amended to read as follows:

     13-43-6.3.   Until a teacher is in or beyond the fourth consecutive term of employment as a teacher with the school district, a school board may or may not renew the teacher's contract. The superintendent or chief executive officer shall give written notice of nonrenewal by April fifteenth but is not required to give further process or a reason for nonrenewal.

     After a teacher is in or beyond the fourth consecutive term of employment as a teacher with the school district, §§ 13-43-6.1 and 13-43-6.2 apply to any nonrenewal of the teacher's contract. On or before April fifteenth, the superintendent or chief executive officer shall notify the teacher and the school board in writing of the recommendation to not renew the teacher's contract.
     Acceptance by the teacher of an offer from the district to enter into a new contract with the teacher shall be in the manner specified in the offer. Failure of the teacher to accept the offer in the manner specified constitutes the termination of the existing contract between the teacher and the district at the end of its term.

     Section 19. That § 13-43-6.4 be repealed.

     13-43-6.4.   Notwithstanding §§ 13-43-6.1 to 13-43-6.3, inclusive, if a teacher's contract is not renewed due to a reduction in staff, only written notice is required, which shall be provided by the school board to the teacher by April fifteenth.

     Section 20. That § 13-43-6.6 be amended to read as follows:

     13-43-6.6.   Although a collective bargaining agreement between a district and its teachers may set forth specific additional grounds for termination or set forth provisions as to the procedure or notice, no agreement may limit the district's right to terminate a teacher for the grounds set forth in §§ 13-43-6.1 to 13-43-6.3, inclusive . No agreement may limit the protection afforded to a teacher under § 13-43-6.5.

     Section 21. That § 13-43-6.8 be amended to read as follows:

     13-43-6.8.   Delivery of any notification to the teacher pursuant to § 13-43-6.2 or 13-43-6.7 shall be established by certified mail with return receipt signed by the teacher, personal delivery evidenced by a receipt signed by the teacher, or affidavit of personal service made by a person authorized to effect personal service.

     Section 22. That § 13-43-6.9 be amended to read as follows:

     13-43-6.9.   Delivery of a written request for a hearing provided by § 13-43-6.2 or 13-43-6.7 shall be established by certified mail with return receipt signed by the superintendent, chief executive officer, or board member, or a person authorized to accept certified mail for the district, or personal delivery evidenced by a receipt signed by the superintendent, chief executive officer, or board member, or an affidavit of personal service upon the district made by a person authorized to effect personal service no later than fifteen days after receipt of the notice by the teacher.

     Section 23. This Act is effective on July 1, 2009."


Moved by:    Hills
Second by:    Olson (Ryan)
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1262 AS AMENDED

Moved by:    Hills
Second by:    Olson (Ryan)
Action:    Prevailed by roll call vote. (10-5-0-0)

Voting Yes:    Buckingham, Gilson, Hackl, Hills, McLaughlin, Novstrup (Al), Olson (Ryan), Weems, Wick, Heineman

Voting No:    Bradford, DeVries, Elliott, Thompson, Van Norman

MOTION:     AMEND TITLE OF HB 1262

1262cta

     On page 1, line 1, of the printed bill, delete everything after "An Act to" and insert "establish a classification system, an evaluation system, and minimum annual salaries for certified teachers and school service specialists, and to repeal certain provisions relating to teacher tenure.".


Moved by:    Olson (Ryan)
Second by:    Weems
Action:    Prevailed by voice vote.

GAVEL PASSED TO CHAIRMAN HEINEMAN.

         HB 1257: limit the total amount of revenue payable from taxes on real property within a school district for the purposes of its capital outlay fund.

Presented by:    Representative Hal Wick

MOTION:     DEFER HB 1257 TO THE 36TH LEGISLATIVE DAY

Moved by:    DeVries
Second by:    Olson (Ryan)
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION AMEND HB 1257

1257fa

On the printed bill, delete everything after the enacting clause and insert:

     "      Section 1. That chapter 10-12 be amended by adding thereto a NEW SECTION to read as follows:

     If the portion of the total taxable valuation for taxes payable in 2010, 2011, 2012, 2013, 2014, and 2015 of the state attributed to agricultural property increases by a greater percentage than the other classifications of property on a statewide aggregate basis, the median level of assessment as defined in § §  10-12-31.1 and 10-13-37 shall be adjusted proportionally to maintain the taxable valuation for taxes payable in 2009 base between agricultural property and all other property. The taxable valuation base for all other classification of property shall be adjusted by the percentage increase of value resulting from any improvements or change in use of real property. Any adjustments in the median level of assessments made pursuant to § §  10-12-31.1 and 10-13-37 shall be based on maintaining the relationship between the total statewide taxable valuation of agricultural property and the other classifications of property as adjusted for improvements and change in use.

     Section 2. That § 10-12-31.1 be amended to read as follows:

     10-12-31.1.   Notwithstanding other provision of law, when applying the levies for school purposes for taxes payable in 2010 and each year thereafter , the county director of equalization of each county shall adjust the level of assessment in that district so that the level of assessment as indicated by the most recent assessment to sales ratio as provided for in § 10-11-55 in that district

are equal to eighty-five percent of market value and the most recent assessment to full agricultural land value ratio as provided for in § 10-11-57 in that district are equal to eighty-five eighty-four percent of market value. The Department of Revenue and Regulation shall provide the director of equalization of each county all of the factors of adjustment necessary for the computations required in this section.

     Section 3. That § 10-13-37 be amended to read as follows:

     10-13-37.   Property For taxes payable in 2010 and each year thereafter, property taxes shall be levied on valuations where the median level of assessment represents eighty-five percent of the market value as determined by the Department of Revenue and Regulation. However, for any property classified as agricultural property, the director of equalization shall make the necessary adjustments, so that the median level of assessment represents eighty-four percent of the market value as determined by the Department of Revenue and Regulation.

     Section 4. That chapter 10-6 be amended by adding thereto a NEW SECTION to read as follows:

     Notwithstanding the provisions of §  10-6-74, if any nonagricultural or owner-occupied property sells for more than one hundred fifty percent of its assessed value after November 1, 2007, the sale of such property shall be used to value other real property if the sale is an arms-length transaction. However, for the taxable valuation for taxes payable in 2010, 2011, 2012, 2013, and 2014, no nonagricultural or owner-occupied property's valuation may increase more than five percent per year because of the sales provided by this section. The sales of nonagricultural and owner-occupied property may only be used in a sales ratio study as allowed by this section.

     Section 5. That chapter 10-6 be amended by adding thereto a NEW SECTION to read as follows:

     Notwithstanding the provisions of §  10-6-74, if any agricultural property sells for more than one hundred fifty percent of its assessed value after November 1, 2007, the sale of such property shall be used to value other real property if the sale is an arms-length transaction. However, for the taxable valuation for taxes payable in 2010, 2011, 2012, 2013, and 2014, no agricultural property's valuation may increase more than ten percent per year because of the sales provided by this section. The sales of agricultural property may only be used in a sales ratio study as allowed by this section.

     Section 6. That § §  10-6-33.14 to 10-6-33.18, inclusive, be repealed.

     Section 7. That § 10-6-31.3 be amended to read as follows:

     10-6-31.3.   For tax purposes, land is agricultural land if it meets two of the following three criteria:

             (1)      At least thirty-three and one-third percent of the total family gross income of the owner

is derived from the pursuit of agriculture as defined in subdivision (2) of this section or it is a state-owned public shooting area or a state-owned game production area as identified in § 41-4-8 and it is owned and managed by the Department of Game, Fish and Parks;

             (2)      Its principal use is devoted to the raising and harvesting of crops or timber or fruit trees, the rearing, feeding, and management of farm livestock, poultry, fish, or nursery stock, the production of bees and apiary products, or horticulture, all for intended profit pursuant to subdivision (1) of this section. Agricultural real estate also includes woodland, wasteland, and pasture land, but only if the land is held and operated in conjunction with agricultural real estate as defined and it is under the same ownership;

             (3)      It consists of not less than twenty acres of unplatted land or is a part of a contiguous ownership of not less than eighty acres of unplatted land. The same acreage specifications apply to platted land, excluding land platted as a subdivision, which is in an unincorporated area. However, the board of county commissioners may increase the minimum acre requirement up to one hundred sixty acres.

     However, for tax purposes, land is not agricultural land if the land is classified pursuant to § 10- 6-33.14 as a nonagricultural acreage.

     Section 8. That § 13-11-10 be amended to read as follows:

     13-11-10.   In implementing the terms of § 13-11-9, a separate weighted average tax levy of the receiving districts shall be calculated for agricultural property, nonagricultural acreage property, owner-occupied single-family dwelling property, and for nonagricultural property for each sending school district as follows:

             (1)      The levy per thousand dollars of taxable valuation for agricultural property for each receiving school district shall be multiplied by the number of children from the sending school district to whom the receiving school district is providing educational services;

             (2)      Add together the products from subdivision (1) for each receiving school district;

             (3)      Divide the sum from subdivision (2) by the total number of students that the contracting school district is sending to the receiving school districts pursuant to § 13-15-1.3. The quotient is the weighted average tax levy per one thousand dollars of taxable valuation for agricultural property;

             (4)      The weighted average tax levy per thousand dollars of taxable valuation for nonagricultural acreage, owner-occupied single-family dwellings , and nonagricultural property shall be obtained by repeating the procedure outlined in subdivisions (1) to (3),

inclusive, for each class of property; and

             (5)      The sum of the levies assessed for all funds in the sending district shall be equal to or greater than the sum of all levies for all funds in the receiving district.

     The above calculations do not include students receiving educational services from an out-of-state school district nor the tax levy of any out-of-state school district.

     Section 9. That § 10-12-42 be amended to read as follows:

     10-12-42.   For taxes payable in 2008 2009 and each year thereafter, the levy for the general fund of a school district shall be as follows:

             (1)      The maximum tax levy shall be nine dollars and eleven cents per thousand dollars of taxable valuation subject to the limitations on agricultural property as provided in subdivision (2) of this section, and owner-occupied property as provided for in subdivision (3) of this section , and nonagricultural acreage property as provided for in subdivision (4) of this section ;

             (2)      The maximum tax levy on agricultural property for such school district shall be two dollars and seventy-one cents per thousand dollars of taxable valuation. If the district's levies are less than the maximum levies as stated in this section, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies; and

             (3)      The maximum tax levy for an owner-occupied single-family dwelling as defined in § 10- 13-40, for such school district may not exceed four dollars and twenty-six cents per thousand dollars of taxable valuation. If the district's levies are less than the maximum levies as stated in this section, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies ; and

             (4)      The maximum tax levy on nonagricultural acreage property as defined in § 10-6-33.14, for such school district shall be three dollars and seventy-one cents per thousand dollars of taxable valuation. If the district's levies are less than the maximum levies as stated in this section, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies .

     All levies in this section shall be imposed on valuations where the median level of assessment represents eighty-five the percent of market value as determined by the Department of Revenue and Regulation pursuant to § §  10-12-31.1 and 10-13-37 . These valuations shall be used for all school funding purposes. If the district has imposed an excess levy pursuant to § 10-12-43, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the

maximum levies in this section. The school district may elect to tax at less than the maximum amounts set forth in this section.

     Section 10. That § 10-6-33.24 be amended to read as follows:

     10-6-33.24.   Notwithstanding the provisions of chapter 10-6, the board of county commissioners may, by ordinance or resolution, require that any property classified as agricultural land may within in the county shall be assessed based on its agricultural income value if there are less than fifteen arms-length transactions of agricultural land during the three preceding assessment years . The agricultural income value of agricultural land shall be determined on the basis of the capitalized annual cash rent of the agricultural land. The capitalized annual cash rent shall be based on data collected and analyzed pursuant to § 10-6-33.25. For the purposes of this section, arms-length transactions do not include any agricultural land sales subject to the provisions of § 10-6-33.14, 10- 6-33.20, or 10-6-74.

     Section 11 That § 10-6-33.25 be amended to read as follows:

     10-6-33.25.   For the purposes of § 10-6-33.24, the agricultural income value shall be determined using capitalized annual cash rent. The annual cash rent is the annual cash rent, excluding the per acre tax on agricultural land, determined through an analysis of arms-length rental agreements collected within the county in the three years prior to the year for which the agricultural income value is being determined. The agricultural income value of cropland shall be based on average rents over a three-year period for cropland under natural conditions. The agricultural income value of noncropland shall be based on average rents over a three-year period for noncropland under natural conditions. However, no arms-length rental agreements for irrigated land may be used to determine the annual cash rent pursuant to this section. The annual cash rent shall be capitalized at seven and three-fourths four percent.

     The secretary of revenue and regulation may enter into a contract for the collection of cash rent information by county. Cash rent information shall be adjusted by soil survey statistics, if available, and pursuant to § 10-6-33.26.

     Section 12. Any agricultural land, as defined in § 10-6-31.3, that is sold and the assessor determines such agricultural land will have a change in use and will be transferred to another classification of property, may not be used for the purpose of valuing agricultural land. The sale of any agricultural land that is not used for purpose of valuing agricultural property pursuant to this section may not be used in any sales ratio study.

     Section 13. That § 13-37-16 be amended to read as follows:

     13-37-16.   For taxes payable in 1997, and each year thereafter, the school board shall levy no more than one dollar and forty cents per thousand dollars of taxable valuation, as a special levy in

addition to all other levies authorized by law for the amount so determined to be necessary, and such levy shall be spread against all of the taxable property of the district. The proceeds derived from such levy shall constitute a school district special education fund of the district for the payment of costs for the special education of all children in need of special education or special education and related services who reside within the district pursuant to the provisions of §§ 13-37-8.2 to 13-37-8.10, inclusive. The levy in this section shall be based on valuations such that the median level of assessment represents 85% of market value as determined by the Department of Revenue and Regulation. The total amount of taxes that would be generated at the levy pursuant to this section shall be considered local effort. Money in the special education fund may be expended for the purchase or lease of any assistive technology that is directly related to special education and specified in a student's individualized education plan. This section does not apply to real property improvements.

     Section 14. That §   10-6-74 be repealed on July 1, 2013.

     Section 15. The provisions of sections 1, 4, and 5 of this Act are repealed on July 1, 2015."



Moved by:    Thompson
Second by:    Weems
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1257 AS AMENDED

Moved by:    Thompson
Second by:    Weems
Action:    Prevailed by roll call vote. (10-5-0-0)

Voting Yes:    Bradford, Elliott, Hackl, McLaughlin, Novstrup (Al), Thompson, Van Norman, Weems, Wick, Heineman

Voting No:    Buckingham, DeVries, Gilson, Hills, Olson (Ryan)

MOTION:     AMEND TITLE OF HB 1257

1257fta

     On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "revise certain procedures regarding real property assessment and taxation and to repeal the nonagricultural acreage classification and certain provisions regarding the assessment of property.".

     On page 1, delete line 2.


Moved by:    Weems
Second by:    Wick
Action:    Prevailed by voice vote.

MOTION:     ADJOURN

Moved by:    Weems
Second by:    Gilson
Action:    Prevailed by voice vote.

Jeanette Black

____________________________

Committee Secretary
Phyllis M. Heineman, Chair


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