Minnesota Legislature
HF 4577
as introduced - 92nd Legislature (2021 - 2022) Posted on 03/24/2022 01:59pm
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 03/24/2022 |
Current Version - as introduced
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A bill for an act
relating to public finance; modifying local government debt financing; amending
Minnesota Statutes 2020, sections 123B.61; 366.095, subdivision 1; 373.01,
subdivision 3; 383B.117, subdivision 2; 410.32; 412.301.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 123B.61, is amended to read:
123B.61 PURCHASE OF CERTAIN EQUIPMENT.
The board of a district may issue general obligation certificates of indebtedness or capital
notes subject to the district debt limits to: (a) purchase vehicles, computers, telephone
systems, cable equipment, photocopy and office equipment, technological equipment for
instruction, and other capital equipment having an expected useful life at least as long as
the terms of the certificates or notes; (b) purchase computer hardware and software, without
regard to its expected useful life, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer; and (c) prepay special assessments. The certificates or notes must be
payable in not more than deleted text begin tendeleted text end new text begin 20new text end years and must be issued on the terms and in the manner
determined by the boarddeleted text begin , except that certificates or notes issued to prepay special assessments
must be payable in not more than 20 yearsdeleted text end . The certificates or notes may be issued by
resolution and without the requirement for an election. The certificates or notes are general
obligation bonds for purposes of section 126C.55. A tax levy must be made for the payment
of the principal and interest on the certificates or notes, in accordance with section 475.61,
as in the case of bonds. The sum of the tax levies under this section and section 123B.62
for each year must not exceed the lesser of the amount of the district's total operating capital
revenue or the sum of the district's levy in the general and community service funds excluding
the adjustments under this section for the year preceding the year the initial debt service
levies are certified. The district's general fund levy for each year must be reduced by the
sum of (1) the amount of the tax levies for debt service certified for each year for payment
of the principal and interest on the certificates or notes issued under this section as required
by section 475.61, (2) the amount of the tax levies for debt service certified for each year
for payment of the principal and interest on bonds issued under section 123B.62, and (3)
any excess amount in the debt redemption fund used to retire bonds, certificates, or notes
issued under this section or section 123B.62 after April 1, 1997, other than amounts used
to pay capitalized interest. If the district's general fund levy is less than the amount of the
reduction, the balance shall be deducted first from the district's community service fund
levy, and next from the district's general fund or community service fund levies for the
following year. A district using an excess amount in the debt redemption fund to retire the
certificates or notes shall report the amount used for this purpose to the commissioner by
July 15 of the following fiscal year. A district having an outstanding capital loan under
section 126C.69 or an outstanding debt service loan under section 126C.68 must not use an
excess amount in the debt redemption fund to retire the certificates or notes.
Sec. 2.
Minnesota Statutes 2020, section 366.095, subdivision 1, is amended to read:
Subdivision 1.
Certificates of indebtedness.
The town board may issue certificates of
indebtedness within the debt limits for a town purpose otherwise authorized by law. The
certificates shall be payable in not more than deleted text begin tendeleted text end new text begin 20new text end years and be issued on the terms and
in the manner deleted text begin asdeleted text end new text begin determined bynew text end the board deleted text begin may determine, provided that notes issued for
projects that eliminate R-22, as defined in section 240A.09, paragraph (b), clause (2), must
be payable in not more than 20 yearsdeleted text end . If the amount of the certificates to be issued exceeds
0.25 percent of the estimated market value of the town, they shall not be issued for at least
ten days after publication in a newspaper of general circulation in the town of the board's
resolution determining to issue them. If within that time, a petition asking for an election
on the proposition signed by voters equal to ten percent of the number of voters at the last
regular town election is filed with the clerk, the certificates shall not be issued until their
issuance has been approved by a majority of the votes cast on the question at a regular or
special election. A tax levy shall be made to pay the principal and interest on the certificates
as in the case of bonds.
Sec. 3.
Minnesota Statutes 2020, section 373.01, subdivision 3, is amended to read:
Subd. 3.
Capital notes.
(a) A county board may, by resolution and without referendum,
issue capital notes subject to the county debt limit to purchase capital equipment useful for
county purposes that has an expected useful life at least equal to the term of the notes. The
notes shall be payable in not more than deleted text begin tendeleted text end new text begin 20new text end years and shall be issued on new text begin the new text end terms and in
deleted text begin adeleted text end new text begin thenew text end manner new text begin determined by new text end the board deleted text begin determinesdeleted text end . A tax levy shall be made for payment of
the principal and interest on the notes, in accordance with section 475.61, as in the case of
bonds.
(b) For purposes of this subdivision, "capital equipment" means:
(1) public safety, ambulance, road construction or maintenance, deleted text begin anddeleted text end medical equipmentnew text begin ,
and other capital equipmentnew text end ; and
(2) computer hardware and software, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer hardware or software.
Sec. 4.
Minnesota Statutes 2020, section 383B.117, subdivision 2, is amended to read:
Subd. 2.
Equipment acquisition; capital notes.
The board may, by resolution and
without public referendum, issue capital notes within existing debt limits for the purpose
of purchasing ambulance and other medical equipment, road construction or maintenance
equipment, public safety equipment and other capital equipment having an expected useful
life at least equal to the term of the notes issued. The notes shall be payable in not more
than deleted text begin tendeleted text end new text begin 20new text end years and shall be issued on new text begin the new text end terms and in deleted text begin adeleted text end new text begin thenew text end manner deleted text begin asdeleted text end new text begin determined bynew text end the
board deleted text begin determines, provided that notes issued for projects that eliminate R-22, as defined in
section 240A.09, paragraph (b), clause (2), must be payable in not more than 20 yearsdeleted text end . The
total principal amount of the notes issued for any fiscal year shall not exceed one percent
of the total annual budget for that year and shall be issued solely for the purchases authorized
in this subdivision. A tax levy shall be made for the payment of the principal and interest
on such notes as in the case of bonds. For purposes of this subdivision, "equipment" includes
computer hardware and software, whether bundled with machinery or equipment or
unbundled. For purposes of this subdivision, the term "medical equipment" includes computer
hardware and software and other intellectual property for use in medical diagnosis, medical
procedures, research, record keeping, billing, and other hospital applications, together with
application development services and training related to the use of the computer hardware
and software and other intellectual property, all without regard to their useful life. For
purposes of determining the amount of capital notes which the county may issue in any
year, the budget of the county and Hennepin Healthcare System, Inc. shall be combined
and the notes issuable under this subdivision shall be in addition to obligations issuable
under section 373.01, subdivision 3.
Sec. 5.
Minnesota Statutes 2020, section 410.32, is amended to read:
410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
(a) Notwithstanding any contrary provision of other law or charter, a home rule charter
city may, by resolution and without public referendum, issue capital notes subject to the
city debt limit to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical equipment, road construction
and maintenance equipment, and other capital equipment; and
(2) computer hardware and software, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer hardware and software.
(c) The equipment or software must have an expected useful life at least as long as the
term of the notes.
(d) The notes shall be payable in not more than deleted text begin tendeleted text end new text begin 20new text end years and be issued onnew text begin thenew text end terms
and in the mannernew text begin determined bynew text end the city deleted text begin determines, provided that notes issued for projects
that eliminate R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable
in not more than 20 yearsdeleted text end . The total principal amount of the capital notes issued in a fiscal
year shall not exceed 0.03 percent of the estimated market value of taxable property in the
city for that year.
(e) A tax levy shall be made for the payment of the principal and interest on the notes,
in accordance with section 475.61, as in the case of bonds.
(f) Notes issued under this section shall require an affirmative vote of two-thirds of the
governing body of the city.
(g) Notwithstanding a contrary provision of other law or charter, a home rule charter
city may also issue capital notes subject to its debt limit in the manner and subject to the
limitations applicable to statutory cities pursuant to section 412.301.
Sec. 6.
Minnesota Statutes 2020, section 412.301, is amended to read:
412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
(a) The council may issue certificates of indebtedness or capital notes subject to the city
debt limits to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical equipment, road construction
and maintenance equipment, and other capital equipment; and
(2) computer hardware and software, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer hardware or software.
(c) The equipment or software must have an expected useful life at least as long as the
terms of the certificates or notes.
(d) Such certificates or notes shall be payable in not more than deleted text begin tendeleted text end new text begin 20new text end years and shall
be issued on deleted text begin suchdeleted text end new text begin thenew text end terms and in deleted text begin suchdeleted text end new text begin thenew text end manner deleted text begin asdeleted text end new text begin determined bynew text end the council deleted text begin may
determine, provided, however, that notes issued for projects that eliminate R-22, as defined
in section 240A.09, paragraph (b), clause (2), must be payable in not more than 20 yearsdeleted text end .
(e) If the amount of the certificates or notes to be issued to finance any such purchase
exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall
not be issued for at least ten days after publication in the official newspaper of a council
resolution determining to issue them; and if before the end of that time, a petition asking
for an election on the proposition signed by voters equal to ten percent of the number of
voters at the last regular municipal election is filed with the clerk, such certificates or notes
shall not be issued until the proposition of their issuance has been approved by a majority
of the votes cast on the question at a regular or special election.
(f) A tax levy shall be made for the payment of the principal and interest on such
certificates or notes, in accordance with section 475.61, as in the case of bonds.