1.1                          A bill for an act 
  1.2             relating to local government; modifying provisions 
  1.3             relating to regional rail authorities; providing for 
  1.4             financing of railroad facilities; authorizing 
  1.5             intergovernmental agreements and payments involving a 
  1.6             regional rail authority; authorizing issuance of 
  1.7             general obligation bonds by regional rail authority; 
  1.8             amending Minnesota Statutes 1998, sections 398A.04, 
  1.9             subdivisions 1, 8, and 9; and 398A.07, subdivision 2. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1998, section 398A.04, 
  1.12  subdivision 1, is amended to read: 
  1.13     Subdivision 1.  [GENERAL.] An authority may exercise all 
  1.14  the powers necessary or desirable to implement the powers 
  1.15  specifically granted in this section, and in exercising the 
  1.16  powers is deemed to be performing an essential governmental 
  1.17  function and exercising a part of the sovereign power of the 
  1.18  state, and is a local government unit and political subdivision 
  1.19  of the state.  Without limiting the generality of the foregoing, 
  1.20  the authority may: 
  1.21     (a) sue and be sued, have a seal, which may but need not be 
  1.22  affixed to documents as directed by the board, make and perform 
  1.23  contracts, and have perpetual succession; 
  1.24     (b) acquire real and personal property within or outside 
  1.25  its taxing jurisdiction, by purchase, gift, devise, 
  1.26  condemnation, conditional sale, lease, lease purchase, or 
  1.27  otherwise; or for purposes, including the facilitation of an 
  2.1   economic development project pursuant to section 383B.81 or 
  2.2   469.091 or 469.175, subdivision 7, that also improve rail 
  2.3   service; ~~and~~ 
  2.4      (c) hold, manage, control, sell, convey, lease, mortgage, 
  2.5   or otherwise dispose of real or personal property; and 
  2.6      (d) make grants or otherwise appropriate funds to the 
  2.7   department of transportation, the metropolitan council, or any 
  2.8   other state or local governmental unit for the purposes 
  2.9   described in subdivision 2 with respect to railroad facilities 
  2.10  located or to be located within the authority's jurisdiction, 
  2.11  whether or not the facilities will be acquired, constructed, 
  2.12  owned, or operated by the authority. 
  2.13     Sec. 2.  Minnesota Statutes 1998, section 398A.04, 
  2.14  subdivision 8, is amended to read: 
  2.15     Subd. 8.  [TAXATION.] Before deciding to exercise the power 
  2.16  to tax, the authority shall give six weeks' published notice in 
  2.17  all municipalities in the region.  If a number of voters in the 
  2.18  region equal to five percent of those who voted for candidates 
  2.19  for governor at the last gubernatorial election present a 
  2.20  petition within nine weeks of the first published notice to the 
  2.21  secretary of state requesting that the matter be submitted to 
  2.22  popular vote, it shall be submitted at the next general 
  2.23  election.  The question prepared shall be:  
  2.24     "Shall the regional rail authority have the power to impose 
  2.25  a property tax?  
  2.26                                     Yes .......
  2.27                                     No ........"
  2.28     If a majority of those voting on the question approve or if 
  2.29  no petition is presented within the prescribed time the 
  2.30  authority may levy a tax at any annual rate not exceeding 
  2.31  0.04835 percent of market value of all taxable property situated 
  2.32  within the municipality or municipalities named in its 
  2.33  organization resolution; provided, however, that the maximum 
  2.34  amount of the tax which may be levied in any year shall be 
  2.35  reduced by the amount of taxes levied to pay principal and 
  2.36  interest due in the following year on any outstanding general 
  3.1   obligation bonds issued pursuant to section 398A.07.  Its 
  3.2   recording officer shall file, on or before September 15, in the 
  3.3   office of the county auditor of each county in which territory 
  3.4   under the jurisdiction of the authority is located a certified 
  3.5   copy of the board of commissioners' resolution levying the tax, 
  3.6   and each county auditor shall assess and extend upon the tax 
  3.7   rolls of each municipality named in the organization resolution 
  3.8   the portion of the tax that bears the same ratio to the whole 
  3.9   amount that the net tax capacity of taxable property in that 
  3.10  municipality bears to the net tax capacity of taxable property 
  3.11  in all municipalities named in the organization resolution.  
  3.12  Collections of the tax shall be remitted by each county 
  3.13  treasurer to the treasurer of the authority.  For taxes levied 
  3.14  in 1991, the amount levied for light rail transit purposes under 
  3.15  this subdivision shall not exceed 75 percent of the amount 
  3.16  levied in 1990 for light rail transit purposes under this 
  3.17  subdivision. 
  3.18     Sec. 3.  Minnesota Statutes 1998, section 398A.04, 
  3.19  subdivision 9, is amended to read: 
  3.20     Subd. 9.  [AGREEMENTS.] The authority may enter into joint 
  3.21  powers agreements under section 471.59 or other agreements with 
  3.22  the municipality or municipalities named in the organization 
  3.23  agreement~~, or~~; with other municipalities situated in the 
  3.24  counties named in the resolution, respecting the matters 
  3.25  referred to in section 398A.06 ~~or~~; with another authority; with 
  3.26  a state agency; or with the metropolitan council about any 
  3.27  matter subject to this chapter. 
  3.28     Sec. 4.  Minnesota Statutes 1998, section 398A.07, 
  3.29  subdivision 2, is amended to read: 
  3.30     Subd. 2.  [SECURITY.] Bonds may be made payable exclusively 
  3.31  from the revenues from one or more projects, or from one or more 
  3.32  revenue producing contracts, or from the authority's revenues 
  3.33  generally, including but not limited to specified taxes which 
  3.34  the authority may levy or which a particular municipality may 
  3.35  agree to levy for a specified purpose, and may be additionally 
  3.36  secured by a pledge of any grant, subsidy, or contribution from 
  4.1   any public agency, including but not limited to a participating 
  4.2   municipality, or any income or revenues from any source.  They 
  4.3   may be secured by a mortgage or deed of trust of the whole or 
  4.4   any part of the property of the authority.  They shall be 
  4.5   payable solely from the revenues, funds, and property pledged or 
  4.6   mortgaged for their payment.  No commissioner, officer, 
  4.7   employee, agent, or trustee of the authority shall be liable 
  4.8   personally on its bonds or be subject to any personal liability 
  4.9   or accountability by reason of their issuance.  Neither the 
  4.10  state nor a county or other municipality except the authority 
  4.11  may pledge its faith and credit or taxing power or shall be 
  4.12  obligated in any manner for the payment of the bonds or interest 
  4.13  on them, except as specifically provided by agreement under 
  4.14  section 398A.06; but nothing herein shall affect the obligation 
  4.15  of the state or municipality to perform any contract made by it 
  4.16  with the authority, and when the authority's rights under a 
  4.17  contract with the state or a municipality are pledged by the 
  4.18  authority for the security of its bonds, the holders or a bond 
  4.19  trustee may enforce the rights as a third party beneficiary.  
  4.20  All bonds shall be negotiable within the meaning and for the 
  4.21  purposes of the Uniform Commercial Code, subject only to any 
  4.22  registration requirement.  If the authority is authorized to 
  4.23  levy taxes under section 398A.04, subdivision 8, the authority 
  4.24  may issue general obligation bonds of the authority, without a 
  4.25  referendum, which are payable primarily from such taxes.  If the 
  4.26  maximum amount of principal and interest to become due in any 
  4.27  year on all outstanding bonds issued under this section which 
  4.28  are general obligations, including the bonds to be issued, does 
  4.29  not exceed 0.04835 percent of the market value of taxable 
  4.30  property in the municipality or municipalities named in its 
  4.31  organization resolution for taxes payable in the year in which 
  4.32  the bonds are issued, the authority may levy a tax on all 
  4.33  taxable property in such municipality or municipalities without 
  4.34  limit as to rate or amount to pay principal and interest on its 
  4.35  general obligation bonds when due.