HF 1429

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to local government; prohibiting local 
  1.3             government from providing services or goods that are 
  1.4             provided by private business; repealing authority for 
  1.5             municipal liquor stores; requiring a study by the 
  1.6             state auditor; proposing coding for new law in 
  1.7             Minnesota Statutes, chapter 340A.  
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [340A.605] [NO MUNICIPAL LIQUOR STORES.] 
  1.10     Notwithstanding any other law to the contrary, no city may 
  1.11  establish, own, or operate a municipal liquor store. 
  1.12     [EFFECTIVE DATE.] This section is effective January 1, 2005.
  1.13     Sec. 2.  [CLOSING, SALE OF MUNICIPAL LIQUOR STORE 
  1.14  FACILITIES AND STOCK.] 
  1.15     A city that owns or operates a municipal liquor store must 
  1.16  sell, transfer, or otherwise dispose of that store and all stock 
  1.17  by January 1, 2005.  Proceeds of any sale must be deposited in 
  1.18  the city's general fund. 
  1.19     [EFFECTIVE DATE.] This section is effective the day 
  1.20  following final enactment. 
  1.21     Sec. 3.  [LOCAL GOVERNMENT OPERATION OF ENTERPRISES 
  1.22  PROHIBITED.] 
  1.23     Subdivision 1.  [PROHIBITION.] Notwithstanding any other 
  1.24  law to the contrary, a statutory or home rule charter city, 
  1.25  county, or town must not acquire, own, operate, or make 
  1.26  appropriations to support any enterprise that may be owned, 
  2.1   operated, or supported by private entities, except as otherwise 
  2.2   provided in this section.  "Enterprise" includes but is not 
  2.3   limited to a nursing home, hospital, water utility, sewer and 
  2.4   wastewater treatment plant utility, gas utility, electric 
  2.5   utility, and heating service. 
  2.6      Subd. 2.  [DIVESTITURE.] A local government that owns or 
  2.7   operates an enterprise listed in this section must sell the 
  2.8   enterprise at public auction to the highest bidder.  The 
  2.9   transfer of ownership agreement must provide for repayment of 
  2.10  all outstanding bonds according to the terms of the bond 
  2.11  agreements.  If the bond agreement requires it, ownership or 
  2.12  operation of an enterprise listed in subdivision 1, may remain 
  2.13  with the governmental entity.  The purchaser must guarantee to 
  2.14  maintain the facilities and continue to provide the service at 
  2.15  substantially the same level as, or better than, the local 
  2.16  government.  The private owner or operator may charge customers 
  2.17  as it determines. 
  2.18     Subd. 3.  [NO BUYER.] If no private entity purchases the 
  2.19  enterprise, the local government may continue the enterprise for 
  2.20  two more years and then must seek to sell the enterprise at 
  2.21  public auction again. 
  2.22     Subd. 4.  [SALE PROCEEDS.] Except as required in any other 
  2.23  agreement, the local government must deposit the proceeds of the 
  2.24  sale in the local government's general fund. 
  2.25     [EFFECTIVE DATE.] This section is effective January 1, 2005.
  2.26     Sec. 4.  [STATE AUDITOR TO STUDY.] 
  2.27     The state auditor must study the incidence and variety of 
  2.28  enterprise-like activities within local governments, the extent 
  2.29  to which they are profitable or not, and the practicality for 
  2.30  divestiture to private parties, and other issues related to 
  2.31  potential privatization.  The state auditor must report to the 
  2.32  committees of the legislature that have jurisdiction over local 
  2.33  government policy. 
  2.34     [EFFECTIVE DATE.] This section is effective the day 
  2.35  following final enactment.