H.741

AN ACT RELATING TO EDUCATION FUNDING

It is hereby enacted by the General Assembly of the State of Vermont:

* * * General State Support Grant Adjustments * * *

Sec. 1.  16 V.S.A. § 4011(a) is amended to read:

(a)  Annually, the general assembly shall appropriate funds to pay for a general state support grant for each equalized pupil and a portion of a general state support grant for each adult diploma student.  In fiscal year 2004, the general state support grant for each equalized pupil shall be $7,010.00.  For each following fiscal year, the general state support grant shall be increased by the most recent cumulative price index, as of December 1, for state and local government purchases of goods and services from fiscal year 2004 through the following fiscal year, as provided through the state’s participation in the New England Economic Project.

Sec. 2.  16 V.S.A. § 4011(g) is amended to read:

     (g)  On or before December 15, the commissioner shall recommend to the general assembly an appropriate level of general state support grants to school districts for the next ensuing school year.  In any school year, a school district may have local education spending plus privately raised funds, per equalized pupil, which is less than the general state support grant approved by the general assembly for that year, provided that those districts spend an amount per equalized pupil which is sufficient to provide a sound education to its students in compliance with state educational quality standards.  This section shall have no effect on the right of a district to approve or not to approve a budget.

* * * Statewide Education Property Tax Rate * * *

Sec. 3.  32 V.S.A. § 5402(a) is amended to read:

     (a)  A statewide education property tax is imposed on all nonresidential and homestead property at a rate of $1.10 $1.38 per $100.00 of equalized education property value as most recently determined under section 5405 of this title; but the homestead property tax liability shall not exceed the adjusted liability for eligible claimants under chapter 154 of this title., except for any municipality which has one or more pupils resident in the school district, and which has adopted a budget in which local education spending plus amounts spent from privately raised funds results in equalized per pupil spending less than the general state support grant, the rate shall be $1.38 multiplied by a fraction, the numerator of which is the municipality’s local education spending, plus amounts spent from privately raised funds, and the denominator of which is the total general state support grant amount; but in no case shall the rate be less than $1.00.

Sec. 3a.  16 V.S.A. § 4027(e) is amended to read:

     (e)  Annually, on or before June 1, each superintendent shall report to the department of education, on a form prescribed by the commissioner, each local education budget which was adopted by May 1 for the following fiscal year by the member districts of the supervisory union and for which no petition for reconsideration has been filed.  A superintendent shall report a budget adopted following May 1, to the department of education, between 30 to 40 days following adoption, or, if a petition for reconsideration has been filed, within 10 days of final adoption of the budget.  Each superintendent shall also report to the commissioner the amount of  privately raised funds as defined in section 4001 (14) of this title. 

Sec. 4.  Sec. 50a of No. 60 of the Acts of 1997, as amended by Sec. 8a of No. 71 of the Acts of 1998 and Sec. 89a of No. 49 of the Acts of 1999, is amended to read:

Sec. 50a.  LIMITATION ON EDUCATION PROPERTY TAXATION OF

                CERTAIN ELECTRIC GENERATING PLANTS

* * *

(2)  A municipality which has upon its grand list an operating electric generating plant subject to the tax under section 5402a of Title 32, shall be subject to the education property tax under chapter 135 of Title 32 at one‑half

the unadjusted rate provided in section subsection 5402(a) of Title 32; and

          (3)  If For a municipality described in subdivision (2) of this section, the provisions of sections 428 and 511 of Title 16 shall not apply.  If such a municipality adopts an education budget with local education spending, as defined in section subdivision 4001(6) of Title 16, per equalized pupil which is in excess of its fiscal year 1998 local education spending per pupil $7,880.00 (unless the spending increase is due to a change in average daily membership), then the provisions of sections 428 and 511 of Title 16 and Sec. 24(b) of Act No. 60 of the Acts of 1997 shall not apply to that municipality, and it the municipality shall impose a tax on its education property tax grand list, as defined in section subdivision 5401(5) of Title 32, at the rate necessary to raise that excess amount over the 1998 local education spending $7,880.00 per equalized pupil.

* * *

* * * Local Education Spending * * *

Sec. 5.  16 V.S.A. § 11(29) is amended to read:

(29)  “Local education spending” means the amount of the school district budget, any assessment for a union school or a joint contract school, and any amount added to pay a deficit pursuant to 24 V.S.A. § 1523(b), which is paid for by the school district from the general state support grant and from local share property tax revenues.  Local education spending does not include any portion of the school budget paid for by any other sources such as endowments, parental fund raising, federal funds, nongovernmental grants or other state funds such as special education funds paid under chapter 101 of this title, or privately raised funds, as defined in subdivision 4001(14) of this title.

Sec. 6.  16 V.S.A. § 4001(6) is amended to read:

(6)  “Local education spending” means the amount of the school district budget, any assessment for a union school or a joint contract school, and any amount added to pay a deficit pursuant to 24 V.S.A. § 1523(b), which is paid for by the school district from the general state support grant and from local share property tax revenues.  Local education spending does not include any portion of the school budget paid for by any other sources such as endowments, parental fund raising, federal funds, nongovernmental grants or other state funds such as special education funds paid under chapter 101 of this title “local education spending”, as defined in subdivision 11(29) of this title.

Sec. 7.  16 V.S.A. § 4001(14) is added to read:

(14)  “Privately raised funds” means any portion of the school budget or other district expenditures raised from sources other than governmental sources, such as endowments, parental or other private fundraising and nongovernmental grants.

* * * Minimum Predictable Yield; Local Yield * * *

Sec. 8.  16 V.S.A. § 4001(4) is amended to read:

(4)  “Yield amount” “Minimum predictable yield” means the amount per equalized pupil for local education spending above the general state support grant, per percent applied to the education property tax liability under section 5402 of Title 32 $56.45 per equalized pupil in fiscal year 2004, and thereafter the minimum predictable yield means the 55th percentile of the most recent year’s local yields of all towns.

Sec. 9.  16 V.S.A. § 4001(13) is added to read:

(13)  “Local yield” means one percent of the municipality’s statewide education property tax liability per equalized pupil, using a statewide education property tax rate of $1.38 per $100.00 of equalized education property value, notwithstanding the provisions of 32 V.S.A. § 5402(a).

* * * Above-Block Spending; Surcharge * * *

Sec. 10.  16 V.S.A. § 4027 is amended to read:

§ 4027.  DETERMINATION OF YIELD AMOUNT AND AMOUNTS DUE

              TO OR FROM THE EDUCATION FUND

(a)  On September 15 of each year, the commissioner of education shall determine a predictable yield for the following fiscal year, based upon the allocation, if any, to the yield pool by the General Assembly for the following fiscal year, and upon projected local education spending and projected local share income sensitivity costs for the following fiscal year.  The commissioner shall calculate the predictable yield so that the estimated amount due into the yield pool, plus the amount allocated to the yield pool by the General Assembly, equals the estimated amount due out of the yield pool.  By October 1, the commissioner shall report to the General Assembly the data and the calculation used to determine the predictable yield under this subsection.  By September 15 of each year, the commissioner of education shall determine the local yield of every town and set the minimum predictable yield at the 55th percentile of local yields for the prior fiscal year.

(b)  Annually, on or before June 30, the commissioner of education shall use the minimum predictable yield amount established in subsection (a) of this section defined in subdivision 4001(4) of this title to determine:

(1)  the local share property tax percentage a school district which adopts a budget with local education spending in excess of the general state support grant shall collect on properties in the district; and

(2)  how much the each district shall pay into or receive from the education fund.  Amounts due shall be:

(1)  From the fund.  A district which has a local yield less than the minimum predictable yield and which has adopted a budget with local education spending per equalized pupil greater than the general state support grant per equalized pupil shall receive a payment from the education fund.  The payment shall be equal to the district’s local education spending in excess of the total general state support grant, minus the amount raised in the district using the minimum predictable yield.  The payment from the education fund shall not be based on local education spending per equalized pupil greater than 150 percent of the general state support grant per equalized pupil.

(2)  To the fund.  There shall be paid to the education fund, from any district which has a local yield greater than the minimum predictable yield and which has adopted a budget with local education spending per equalized pupil in excess of 150 percent of the general state support grant per equalized pupil, the amount the district would raise using the minimum predictable yield for the amount in excess of 150 percent of its total general state support grant, minus its local education spending in excess of 150 percent of its total general state support grant.

* * *

Sec. 11.  16 V.S.A. § 428(b), (c) and (d) are amended to read:

(b)  Following adoption of a budget by the electorate and calculation of the yield amount pursuant to section 4027 of this title, if the district has voted a budget with local education spending in excess of the general state support grant amount, the commissioner of education shall determine the district’s local share property tax percentage:

(1)  The select board shall set a tax rate as follows:

(A)  If the district has a local yield equal to or less than the minimum predictable yield, the rate shall be set to raise an amount equal to the local education spending in excess of the total general state support grant, minus the amount received from the education fund in subdivision 4027(b)(1) of this title.

(B)  If the district has a local yield greater than the minimum predictable yield, the rate shall be set to raise an amount equal to the local education spending in excess of the total general state support grant, plus the amount owed to the fund under subdivision 4027(b)(2) of this title.

(2)  The select board shall then bill each property taxpayer owner of property on the education property tax grand list for the local share property tax amount local education spending in excess of the total general state support grant amount at the rate determined under subdivision (1) of this subsection, and may use tax classifications if authorized.  Homesteads shall be billed without regard to the income sensitivity calculation under chapter 154 of Title 32.

(c)  Local share property tax amount is the education property tax liability due under section 5402 of Title 32, times the local share property tax percentage, minus any amount of education property tax assessed for that year on an electric generating plant subject to tax under chapter 213 of Title 32. Local share property tax percentage means the percentage of the liability under chapter 135 of Title 32 necessary to raise per equalized pupil local education spending in excess of general state support amount, divided by the yield amount.  Local education spending shall have the same meaning that it has in subdivision 4001(6) of this title The definitions of section 4001 of this title shall apply to this section.

(d)  The treasurer of each school district which has a local yield in excess of the minimum predictable yield and which has voted a budget with local education spending in excess of 150 percent of the general state support grant and which can raise more than the yield amount shall, on December 1 in the year in which the tax is levied and on June 1 of the following year, pay to the state treasurer for deposit into the education fund one-half of the municipality’s education property tax liability net payment, as determined by the commissioner of education.  Payment shall be accompanied by a return prescribed by the state treasurer in consultation with the commissioner of education.  Any portion of local share property tax liability due to the treasurer and paid before the due date shall be discounted on a per diem basis at an annual rate of six percent.  A district which has not voted a budget and for which the commissioner has used the most recently adopted budget in calculating the yield amount under section 4027 of this title, shall be subject to this subsection, based on its most recently adopted budget and shall borrow the funds necessary to make payments to the state treasurer.

Sec. 12.  16 V.S.A. § 511(b), (c) and (d) are amended to read:

(b)  Following adoption of a budget by the electorate and calculation of the yield amount pursuant to section 4027 of this title, if the incorporated district has voted a budget with local education spending in excess of the general state support grant amount, the commissioner of education shall determine the district’s local share property tax percentage:

(1)  The prudential committee shall set a tax rate as follows:

(A)  If the district has a local yield equal to or less than the minimum predictable yield, the rate shall be set to raise an amount equal to the local education spending in excess of the total general state support grant, minus the amount received from the education fund in subdivision 4027(b)(1) of this title.

(B)  If the district has a local yield greater than the minimum predictable yield, the rate shall be set to raise the amount of local education spending in excess of the general state support grant, plus the amount owed to the fund under subdivision 4027(b)(2) of this title.

(2)  The prudential committee shall then bill each property taxpayer owner of property on the education property tax grand list for the local share property tax amount local education spending in excess of the general state support grant amount at the rate determined under subdivision (1) of this subsection, and may use tax classifications if authorized.  Homesteads shall be billed without regard to the income sensitivity calculation under chapter 154 of Title 32.  The prudential committee shall have the same authority to enforce collection and payment of this tax, including the collection of interest on overdue taxes, as selectmen have in enforcing collection and payment of town taxes.

(c)  Local share property tax amount is the education property tax liability due under section 5402 of Title 32, times the local share property tax percentage, minus any amount of education property tax assessed for that year on an electric generating plant subject to tax under chapter 213 of Title 32.  Local share property tax percentage means the percentage of the liability under chapter 135 of Title 32 necessary to raise per equalized pupil local education spending in excess of general state support amount, divided by the yield amount.  Local education spending shall have the same meaning that it has in subdivision 4001(6) of this title The definitions in section 4001 of this title shall apply to this section.

     (d)  The treasurer of an incorporated district with a local yield in excess of the minimum predictable yield and which has voted a budget with local education spending in excess of 150 percent of the general state support grant and which can raise more than the yield amount shall, on December 1 in the year in which the tax is levied and on June 1 of the following year, pay to the state treasurer for deposit into the education fund one-half of the municipality’s education property tax liability net payment, as determined by the commissioner of education.  Payment shall be accompanied by a return prescribed by the state treasurer in consultation with the commissioner of education.  Any portion of local share property tax liability due to the treasurer and paid before the due date shall be discounted on a per diem basis at an annual rate of six percent.  An incorporated district which has not voted a budget and for which the commissioner has used the most recently adopted budget in calculating the yield amount under section 4027 of this title, shall be subject to this subsection, based on its most recently adopted budget and shall borrow the funds necessary to make payments to the treasurer.

* * * Income Sensitivity Adjustments * * *

Sec. 13.  32 V.S.A. § 6066(a) is amended to read:

(a)  The property tax of an eligible claimant who owned the homestead on the last day of the taxable year shall be adjusted as follows:

(1)  the claimant’s statewide property tax liability shall be:

(A)  For claimants with household income of $75,000.00 or more, the lesser of 2.0 2.5 percent, as adjusted under subdivision (4) of this subsection, of household income for the taxable year plus the statewide property tax on the value of the homestead in excess of $160,000.00; or the amount of statewide property tax assessed on the homestead; and

(B)  For claimants with household income less than $75,000.00 the lesser of 2.0 2.5 percent, as adjusted under subdivision (4) of this subsection, of household income for the taxable year, or the amount of statewide property tax the municipality would have assessed on the homestead if its equalized value had been reduced by $15,000.00.

          (2)  the claimant’s local share education property tax liability shall be the local share percentage rate established under section 4027 of Title 16 for the municipality in which the homestead is located, multiplied by the statewide property tax liability determined under subdivision (1)  of this subsection,

the lesser of:

               (A)  the statewide property tax liability, calculated in the same manner as determined or elected by the taxpayer under subdivision (A), (B) or (C) of subdivision (1) of this subsection, multiplied by a fraction, the numerator of which is the district’s spending per equalized pupil above the general state support grant, and the denominator of which is the general state support grant; or,

               (B)  the amount of local education property tax assessed on the homestead.

(3)  a claimant whose household income does not exceed $47,000.00 shall also be entitled to a credit against the claimant’s tax liability under chapter 151 of this title equal to the amount by which the property taxes for the municipal fiscal year which began in the taxable year upon the claimant’s homestead, adjusted under subdivisions (1)  and (2) of this subsection, exceeds a percentage of the claimant’s household income for the taxable year as follows:

If household income (rounded to                            then the taxpayer is entitled to

the nearest dollar) is:                                              credit for adjusted property tax

                                                                             paid in excess of this percent

                                                                             of that income:

                        $0 - 4,999.00                                                   3.5

            $5,000.00 - 9,999.00                                                   4.0

        $10,000.00 - 24,999.00                                                   4.5

        $25,000.00 - 47,000.00                                                   5.0

In no event shall the credit exceed the amount of the adjusted property tax.

(4)  The rate of 2.5 percent, as used in subdivision (1) and (2) of this subsection, shall be adjusted by multiplying that amount by a fraction, the numerator of which is the adjusted statewide property tax rate determined under subsection 5402(a) of this title, and the denominator of which is the unadjusted statewide property tax rate.

Sec. 14.  32 V.S.A. § 6067 is amended to read:

§ 6067.  CREDIT LIMITATIONS

(a)  Only one individual per household per taxable year shall be entitled to a benefit under this chapter.

(b)  No claimant shall receive total benefits under this chapter in excess of $2,500.00 for any one year.

Sec. 14a.  32 V.S.A. § 6061(6)(B) is amended to read:

(B)  “Local share education property tax” means the tax assessed under section 428 or 511 of Title 16 on real property in this state used as the claimant’s homestead.

Sec. 15.  32 V.S.A. § 6061(5)(C) is amended to read:

(5)  “Modified adjusted gross income” means the sum of “adjusted gross income” as defined in section 5811 of this title:

* * *

(C)  without the inclusion of gifts from nongovernmental sources, surplus food or other relief in kind supplied by a governmental agency, or the first $4,000.00 $6,500.00 of income earned by a full-time student who qualifies as a dependent of the claimant under the federal Internal Revenue Code, or the first $4,000.00 $6,500.00 of income received by a parent who qualifies as a dependent of the claimant under the Internal Revenue Code, or payments made by the state for foster care or to a family for the support of an eligible person with a developmental disability as defined in subdivision 8722(2) of Title 18.  If the commissioner determines, upon application by the claimant, that a person resides with a claimant who is disabled or was at least 62 years of age as of the end of the year preceding the claim, for the primary purpose of providing attendant care services (as defined in section 6321 of Title 33) or homemaker or companionship services, with or without compensation, which allow the claimant to remain in his or her home or avoid institutionalization, the commissioner shall exclude that person’s modified adjusted gross income from the claimant’s household income.  The commissioner may require that a certificate in a form satisfactory to the commissioner be submitted which supports the claim.

* * * Capital Debt; Hold-Harmless * * *

Sec. 16.  Sec. 23(a) of No. 60 of the Acts of 1997, as amended by Sec. 99 of No. 71 of the Acts of 1998, is amended to read:

     (a)  In fiscal year 1999, a school district which in fiscal year 1998 paid capital debt service for a debt eligible for reimbursement under 16 V.S.A. § 3497(c) prior to its repeal, shall receive reimbursement for those expenditures at the same percentage rate that it was or would have been reimbursed in fiscal year 1998.  Also, in fiscal year 1999, a school district which in fiscal year 1998 incurred capital debt service expenditures eligible for reimbursement under Sec. 13 of Act No. 84 of the Acts of 1987, as amended by Sec. 10 of Act. No. 128 of the Acts of 1988, prior to its repeal, shall receive aid in the amount it would have received if that section had not been repealed.  Beginning in fiscal year 1999 and each year thereafter until the debt is paid, a school district which voted to incur debt prior to July 1, 1997 or which held an unsuccessful vote to incur debt prior to July 1, 1997 and subsequently held a successful vote on the same project prior to October 1, 1997 to pay for construction costs approved by the state board, shall receive capital debt service aid in an amount which will ensure that the school district will pay the debt by levying a tax on its equalized grand list which is no greater than that it would have had to levy on its 1997 equalized grand list.  However, beginning in fiscal year 2004, this provision shall only apply in a year in which the school district’s local yield is equal to or less than the minimum predictable yield.  These provisions shall apply only to debt issued prior to July 1, 1997 or, in the case of projects for which debt had not been issued by that date but had been approved by the voters by that date, the provisions shall apply to debt actually issued and used for those projects.  If the debt is refinanced, the provisions shall apply only to the extent of the prior obligation both in duration and total cost.  A school district which issues or has issued bonded debt to pay for capital construction costs approved by the state board is authorized under the provisions of this act to levy ad valorem taxes on the grand list to pay for debt service therefore as it becomes due and payable, and shall do so unless otherwise payable from other sources, and such school district shall apply any amounts so raised to pay such debt service prior to making payments of any net amounts due to the education fund under this act.  Funds paid to school districts under this subsection shall be appropriated from the education fund.

* * * Miscellaneous Administrative Provisions * * *

Sec. 17.  16 V.S.A. § 4025(b)(3) is amended to read:

(b)  Moneys in the education fund shall be used for the following:

* * *

          (3)  To make payments or transfers required under subdivisions 6066(a)(1) and (2) of Title 32 and only for that portion attributable to education taxes, as determined by the commissioner of taxes, of payments required under subdivisions 6066(a)(3) and 6066(b) section 6066 of Title 32.

Sec. 18.  32 V.S.A. § 5861(f) is added to read:

     (f)  An individual shall include on the Vermont income tax return the amount of real property taxes assessed in this state during the taxable year upon the individual’s homestead as defined in section 5401(7) of this title.

Sec. 18a.  CATEGORICAL AID; STUDY; REPORT

The commissioner of education shall develop a formula or formulas for provision of state aid to school districts for categorical costs such as special education, transportation, small school grants and capital debt service, which will equalize the different abilities of school districts to raise funds for these items.  The commissioner shall provide the recommended formula or formulas to the general assembly on or before January 1, 2003.

Sec. 19.  EDUCATION FUNDING EQUITY STUDY AND

               APPROPRIATION

     (a)  The General Assembly finds that a thorough study of educational quality and efficiency in Vermont will assist it and Vermont schools in improving educational opportunities for Vermont students.  Accordingly, the commissioner of the Department of Education shall contract for the performance of a study to ascertain what funding level or range of funding levels, per pupil or otherwise, is necessary and sufficient to enable a Vermont school district to provide a sound education to its students in compliance with state educational quality standards and other state laws applicable to public schools.  The study shall analyze the educational methods and spending strategies used in the different types and structures of Vermont public schools and school districts to educate students.  The study shall also provide for an evaluation of small schools and their support through small school grants, and evaluate the costs resulting from geographical differences.  The study shall include a report with findings and recommendations.  The recommendations shall give due weight to the practical needs of Vermont schools and students, and shall promote substantially equal educational opportunities to all Vermont students.

     (b)  The contract firm shall have the assistance of the Department of Education, and shall consult with the commissioner, educators, school board members, superintendents and others.  The contract firm must have extensive consulting and analytical experience working in at least two other states, following successful legal challenges to the education funding systems of those states, based on funding inequities.

     (c)  The department shall not award the contract until the Secretary of Administration and the Joint Fiscal Committee issue written approval of the contract and the related work plan.  The department and the contract firm shall submit to the Secretary of Administration, the House and Senate Committees on Education, on Appropriations, on Finance, and on Ways and Means a progress report by January 15, 2003, and a final report by September 15, 2003.

     (d)  For the purposes of this study, the amount of $160,000.00 is appropriated for fiscal year 2003 from the education fund to the Department of Education, and is hereby authorized as an expenditure under section 4025 of Title 16.

Sec. 19a.  31 V.S.A. § 654a is added to read:

§ 654a.  MULTI-JURISDICTIONAL LOTTERY GAME

     (a)  In addition to the Tri-State Lotto Compact provided for in Subchapter 2 of this chapter, the commission shall negotiate and contract with a multi‑jurisdictional lottery game, such as Powerball or the Big Game, to offer and provide a multi-jurisdictional game starting July 1, 2002.  The commission shall adopt rules under chapter 25 of Title 3 to govern the establishment of and operation of the multi-jurisdictional lottery game.   The study shall also analyze alternative revenue sources and methods of funding the costs of elementary and secondary education, and shall specifically address increased use of broad-based state taxes to displace the current excessive reliance on the property tax as the primary source of funding education.  The report of the study shall include recommendations of alternative education revenue sources and proposals for a phased reduction of the use of the property tax for educational funding.  The study shall also address the impact of increased broad-based state taxes on business activity and the economy of the state.

     (b)  In each fiscal year, the revenues received from the operation of the multi-jurisdictional lottery game, after payment of prizes and costs of administration, shall be deposited in the education fund.

Sec. 19b.  STATE BOARD REPORT ON EQUAL ACCESS TO

                EDUCATION

     Every two years, beginning in 2005, the State Board of Education shall report to the general assembly on whether all public school students in Vermont enjoy substantially equal educational opportunity and educational environment, which shall mean access to substantially equal teacher quality, course offerings, educational materials including computers, and condition of facilities.

* * * Effective Dates and Transition Rules * * *

Sec. 20.  EFFECTIVE DATES AND TRANSITION RULES

This section shall take effect from passage, and:

(a)  Secs. 1 and 2 (general state support grants) shall take effect July 1, 2003.

(b)  Secs. 3 and 3a (statewide education property tax rate) shall take effect January 1, 2003, and shall apply to fiscal years 2004 and after.

(c)  Sec. 4 (municipality, electric generating plants, limitation on education property tax) shall take effect January 1, 2003, and shall apply to fiscal years 2004 and thereafter.

(d)  Secs. 5, 6 and 7 (local education spending) shall take effect January 1, 2003.

(e)  Secs. 8 and 9 (minimum predictable yield; local yield) shall take effect January 1, 2003.

(f)  Sec. 10 (determinations of amounts due) shall take effect January 1, 2003, except that provisions amending subsection 4027(a) of Title 16 shall take effect upon passage.

(g)  Secs. 11 and 12 (taxation for local education spending) shall take effect January 1, 2003, and shall apply to fiscal years 2004 and thereafter.

(h)  Secs. 13, 14, 14a and 15 (income sensitivity adjustments) shall apply to claims filed for property taxes assessed in fiscal year 2004 and thereafter.

(i)  Sec. 16 (capital debt, hold-harmless) shall take effect from passage.

(j)  Secs. 17, 18 and 19 (miscellaneous administrative provisions) shall take effect from passage.

     (k)  Sec. 19a (multi-jurisdictional lottery game) shall take effect July 1, 2002, except that those provisions of Sec. 19a authorizing the commission to adopt rules for the establishment and operation of the multi-jurisdictional lottery game shall take effect from passage, and the commission may utilize any emergency or expedited rule making process if necessary to meet the July 1, 2002 starting date.