1.1                          A bill for an act 
  1.2             relating to public finance; updating and making 
  1.3             technical changes to public finance and related 
  1.4             provisions related to county and county-supported 
  1.5             hospitals, municipally-owned nursing homes, lake 
  1.6             improvement districts, and the metropolitan council; 
  1.7             extending a sunset date for certain county capital 
  1.8             improvement bonds and limiting the inclusiveness of 
  1.9             capital improvements; removing election requirements 
  1.10            as preconditions for issuance of certain obligations; 
  1.11            requiring reverse referenda in certain cases; 
  1.12            clarifying the effect of a state guaranty as not 
  1.13            creating constitutional public debt of the state; 
  1.14            authorizing some flexibility in stating certain ballot 
  1.15            questions; authorizing Scott and Carver counties to 
  1.16            grant certain economic development powers to their 
  1.17            housing and redevelopment authorities; authorizing the 
  1.18            Chisago Lakes joint sewage treatment commission to 
  1.19            issue bonds; authorizing expanded funding by the 
  1.20            county for certain multijurisdictional program 
  1.21            activities in Hennepin county; authorizing Hassan 
  1.22            township to create and empower an economic development 
  1.23            authority; updating and changing the Minnesota Bond 
  1.24            Allocation Act; amending Minnesota Statutes 2000, 
  1.25            sections 103B.555, by adding a subdivision; 165.10, 
  1.26            subdivision 2; 275.60; 373.40, subdivisions 1, 7; 
  1.27            373.45, subdivision 3; 376.06, subdivision 1; 376.07; 
  1.28            376.08, subdivisions 1, 2, 3, by adding a subdivision; 
  1.29            376.09; 383B.79, by adding a subdivision; 473.39, by 
  1.30            adding a subdivision; 474A.02, subdivisions 8, 13a, 
  1.31            22a, 22b, 23a; 474A.03, subdivisions 1, 2a, 4; 
  1.32            474A.04, subdivisions 1a, 5; 474A.045; 474A.047, 
  1.33            subdivisions 1, 2; 474A.061, subdivisions 1, 2a, 2b, 
  1.34            2c, 4; 474A.091, subdivisions 2, 3, 4, 5, 6, by adding 
  1.35            a subdivision; 474A.131, subdivisions 1, 2, by adding 
  1.36            a subdivision; 474A.14; 475.54, subdivision 1; 475.58, 
  1.37            subdivisions 1, 1a, by adding a subdivision; Laws 
  1.38            1974, chapter 473; Laws 1980, chapter 482; proposing 
  1.39            coding for new law in Minnesota Statutes, chapter 
  1.40            474A; repealing Minnesota Statutes 2000, section 
  1.41            474A.061, subdivision 6. 
  1.42  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.43     Section 1.  Minnesota Statutes 2000, section 103B.555, is 
  2.1   amended by adding a subdivision to read: 
  2.2      Subd. 4.  [DISTRICT OBLIGATIONS.] The district, with 
  2.3   approval of the county board or joint county authority, 
  2.4   expressed in a resolution identifying each specific improvement 
  2.5   to which the approval applies, may exercise the powers of a city 
  2.6   under chapter 429 and section 444.075, including, but not 
  2.7   limited to: 
  2.8      (1) the levy of special assessments; 
  2.9      (2) the imposition of rates and charges; and 
  2.10     (3) the issuance of bonds 
  2.11  to finance improvements that the district may undertake. 
  2.12     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  2.13  following final enactment. 
  2.14     Sec. 2.  Minnesota Statutes 2000, section 165.10, 
  2.15  subdivision 2, is amended to read: 
  2.16     Subd. 2.  [BONDS ISSUED, SOLD, AND RETIRED.] Such bonds 
  2.17  shall be general obligations of the county and issued, sold, and 
  2.18  retired in the manner provided in chapter 475.  
  2.19     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  2.20  following final enactment. 
  2.21     Sec. 3.  Minnesota Statutes 2000, section 275.60, is 
  2.22  amended to read: 
  2.23     275.60 [LEVY OR BOND REFERENDUM; BALLOT NOTICE.] 
  2.24     (a) Notwithstanding any general or special law or any 
  2.25  charter provisions, but subject to section 126C.17, subdivision 
  2.26  9, any question submitted to the voters by any local 
  2.27  governmental subdivision at a general or special election after 
  2.28  June 8, 1995, authorizing a property tax levy or tax rate 
  2.29  increase, including the issuance of debt obligations payable in 
  2.30  whole or in part from property taxes, must include on the ballot 
  2.31  the following notice in boldface type.:  
  2.32     "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING 
  2.33     FOR A PROPERTY TAX INCREASE." 
  2.34     (b) For purposes of this section and section 275.61, "local 
  2.35  governmental subdivision" includes counties, home rule and 
  2.36  statutory cities, towns, school districts, and all special 
  3.1   taxing districts.  This statement is in addition to any general 
  3.2   or special laws or any charter provisions that govern the 
  3.3   contents of a ballot question and, in the case of a question on 
  3.4   the issuance of debt obligations, may be supplemented by a 
  3.5   description of revenues pledged to payment of the obligations 
  3.6   that are intended as the primary source of payment. 
  3.7      (c) This section does not apply to a school district bond 
  3.8   election if the debt service payments are to be made entirely 
  3.9   from transfers of revenue from the capital fund to the debt 
  3.10  service fund. 
  3.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  3.12  following final enactment. 
  3.13     Sec. 4.  Minnesota Statutes 2000, section 373.40, 
  3.14  subdivision 1, is amended to read: 
  3.15     Subdivision 1.  [DEFINITIONS.] For purposes of this 
  3.16  section, the following terms have the meanings given. 
  3.17     (a) "Bonds" means an obligation as defined under section 
  3.18  475.51. 
  3.19     (b) "Capital improvement" means acquisition or betterment 
  3.20  of public lands, development rights in the form of conservation 
  3.21  easements under chapter 84C, buildings, or other improvements 
  3.22  within the county for the purpose of a county courthouse, 
  3.23  administrative building, health or social service facility, 
  3.24  correctional facility, jail, law enforcement center, hospital, 
  3.25  morgue, library, park, qualified indoor ice arena, and roads and 
  3.26  bridges.  An improvement must have an expected useful life of 
  3.27  five years or more to qualify. "Capital improvement" does not 
  3.28  include light rail transit, commuter rail, busway, or any 
  3.29  activity related to it any of them, or a recreation or sports 
  3.30  facility building (such as, but not limited to, a gymnasium, ice 
  3.31  arena, racquet sports facility, swimming pool, exercise room or 
  3.32  health spa), unless the building is part of an outdoor park 
  3.33  facility and is incidental to the primary purpose of outdoor 
  3.34  recreation. 
  3.35     (c) "Commissioner" means the commissioner of trade and 
  3.36  economic development. 
  4.1      (d) "Metropolitan county" means a county located in the 
  4.2   seven-county metropolitan area as defined in section 473.121 or 
  4.3   a county with a population of 90,000 or more. 
  4.4      (e) "Population" means the population established by the 
  4.5   most recent of the following (determined as of the date the 
  4.6   resolution authorizing the bonds was adopted): 
  4.7      (1) the federal decennial census, 
  4.8      (2) a special census conducted under contract by the United 
  4.9   States Bureau of the Census, or 
  4.10     (3) a population estimate made either by the metropolitan 
  4.11  council or by the state demographer under section 4A.02. 
  4.12     (f) "Qualified indoor ice arena" means a facility that 
  4.13  meets the requirements of section 373.43. 
  4.14     (g) "Tax capacity" means total taxable market value, but 
  4.15  does not include captured market value. 
  4.16     Sec. 5.  Minnesota Statutes 2000, section 373.40, 
  4.17  subdivision 7, is amended to read: 
  4.18     Subd. 7.  [REPEALER.] This section is repealed effective 
  4.19  for bonds issued after July 1, 2003 2008, but continues to apply 
  4.20  to bonds issued before that date. 
  4.21     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  4.22  following final enactment. 
  4.23     Sec. 6.  Minnesota Statutes 2000, section 373.45, 
  4.24  subdivision 3, is amended to read: 
  4.25     Subd. 3.  [AGREEMENT.] (a) In order For specified debt 
  4.26  obligations of a county to be covered by the provisions of this 
  4.27  section, the county must enter an agreement with the authority 
  4.28  obligating the county to be bound by the provisions of this 
  4.29  section.  
  4.30     (b) This agreement must be in a form prescribed by the 
  4.31  authority and contain any provisions required by the authority, 
  4.32  including, at least, an obligation to: 
  4.33     (1) deposit with the paying agent three days before the 
  4.34  date on which the payment is due an amount sufficient to make 
  4.35  that payment; 
  4.36     (2) notify the authority, if the county will be unable to 
  5.1   make all or a portion of the payment; and 
  5.2      (3) include a provision in the bond resolution and county's 
  5.3   agreement with the paying agent for the debt obligation that 
  5.4   requires the paying agent to inform the commissioner if it 
  5.5   becomes aware of a default or potential default in the payment 
  5.6   of principal or interest on that issue or if, on the day two 
  5.7   business days before the date a payment is due on that issue, 
  5.8   there are insufficient funds to make the payment on deposit with 
  5.9   the paying agent.  
  5.10     (c) Funds invested in a refunding escrow account 
  5.11  established under section 475.67 that are to become available to 
  5.12  the paying agent on a principal or interest payment date are 
  5.13  deemed to be on deposit with the paying agent three business 
  5.14  days before the payment date.  
  5.15     (b) (d) The provisions of an agreement under this 
  5.16  subdivision are binding as to an issue as long as any debt 
  5.17  obligation of the issue remains outstanding. 
  5.18     (c) (e) This section is a contract with bondholders and may 
  5.19  not be amended or repealed for the covered bonds so long as the 
  5.20  covered bonds are outstanding and the obligations of the state 
  5.21  under this section are not a public debt of the state under 
  5.22  article XI, section 4, of the Minnesota Constitution, and the 
  5.23  legislature may, at any time, choose not to appropriate amounts 
  5.24  under subdivision 4, paragraph (b). 
  5.25     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  5.26  following final enactment. 
  5.27     Sec. 7.  Minnesota Statutes 2000, section 376.06, 
  5.28  subdivision 1, is amended to read: 
  5.29     Subdivision 1.  [PROCEDURE, POWERS, PAY, ELECTION.] A 
  5.30  county board which has purchased and constructed buildings for 
  5.31  hospital purposes may operate these buildings as a hospital and 
  5.32  may appoint a superintendent.  The board shall set the 
  5.33  superintendent's salary, term of employment, and powers and 
  5.34  duties; provide for the management and operation of the 
  5.35  hospital; and operate, control, and manage the hospital.  The 
  5.36  superintendent shall serve at the pleasure of the board.  If the 
  6.1   board determines that it is in the public interest, it may 
  6.2   appoint a hospital board of at least three, but not more than 
  6.3   nine members, who must be county residents and landowners, to 
  6.4   serve may include some or all of the county commissioners except 
  6.5   as otherwise provided in subdivision 2.  Persons appointed to 
  6.6   the hospital board must reside in the hospital's service area 
  6.7   and 80 percent of the board members, including any commissioners 
  6.8   appointed to serve on the hospital board, must be residents of 
  6.9   the county.  The hospital board serves without compensation 
  6.10  unless the county board authorizes the payment of compensation 
  6.11  and reimbursement of expenses for service on the hospital 
  6.12  board.  Notwithstanding section 375.44, if compensation and 
  6.13  reimbursement are authorized, they shall be the same as 
  6.14  authorized for service on the local social services agency.  
  6.15  Subject to its supervision, the county board may commit the 
  6.16  care, management, and operation of the hospital to the hospital 
  6.17  board.  The county board may provide for the organization and 
  6.18  regulation of the hospital board, its duties and the duties of 
  6.19  the members, and regulations for the management, operation, and 
  6.20  control of the hospital.  The county board may lease the 
  6.21  hospital grounds and buildings to a hospital association 
  6.22  nonprofit or governmental hospital organization for terms it 
  6.23  considers advisable.  Sections 376.01 to 376.06 do not permit 
  6.24  any county board to purchase and construct any hospital 
  6.25  buildings or to pay for them without first submitting the 
  6.26  question to the vote of the people.  No purchase or construction 
  6.27  of buildings or payment may be made unless a majority of the 
  6.28  electors voting upon the proposition vote in favor.  
  6.29     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  6.30  following final enactment. 
  6.31     Sec. 8.  Minnesota Statutes 2000, section 376.07, is 
  6.32  amended to read: 
  6.33     376.07 [ADDITION TO COUNTY HOSPITAL.] 
  6.34     When the county board of a county has been authorized by 
  6.35  the voters to construct an addition to the county hospital of 
  6.36  the county under sections 376.01 to 376.06, whether or not also 
  7.1   authorized to equip the addition, and the board has determined 
  7.2   that the addition, whether with or without equipment, cannot be 
  7.3   completed within the cost authorized, or has determined that, to 
  7.4   complete the improvement, certain alterations should be made, or 
  7.5   fixtures or equipment added, either in the original building, or 
  7.6   in the addition, or both, the board may be authorized to spend a 
  7.7   specified additional amount for any of the purposes mentioned in 
  7.8   this chapter, either by vote of the people of the county at a 
  7.9   general or special election or by petition.  If an election is 
  7.10  held, the proposition shall be submitted and disposed of in the 
  7.11  same manner as provided by sections 376.01 to 376.06.  If by 
  7.12  petition, the petition must be signed by a majority of those 
  7.13  voting at the last preceding general election.  The petition may 
  7.14  be in the form of one document or of several documents in the 
  7.15  same form, and shall be filed with the county auditor.  A 
  7.16  special election may be called in the manner provided for 
  7.17  calling special county elections.  When authority is granted by 
  7.18  the voters, in either manner provided, the board may proceed 
  7.19  accordingly.  If the board made or attempted to make a contract 
  7.20  or contracts for more than the authority first granted, it may 
  7.21  ratify and carry out the contracts.  The county board, hospital 
  7.22  board, or board of directors of a nonprofit or governmental 
  7.23  hospital organization that has leased a county hospital may 
  7.24  authorize the remodeling, improvement, alteration, or 
  7.25  construction of an addition to the county hospital or of another 
  7.26  building on the county hospital's existing premises by a 
  7.27  majority vote of the board.  Financing for any project under 
  7.28  this section is governed by other law, including sections 373.40 
  7.29  and 447.45 and chapter 475.  
  7.30     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  7.31  following final enactment. 
  7.32     Sec. 9.  Minnesota Statutes 2000, section 376.08, 
  7.33  subdivision 1, is amended to read: 
  7.34     Subdivision 1.  [APPROPRIATIONS.] Except as provided in 
  7.35  subdivision subdivisions 2 and 4, the board of county 
  7.36  commissioners in any county with a population of 50,000 or less 
  8.1   may appropriate up to $65,000 annually from the general revenue 
  8.2   fund of the county for the acquisition of lands for hospital 
  8.3   purposes, and the construction, improvement, alterations, 
  8.4   equipment and maintenance of hospitals within the county, 
  8.5   including public or nonprofit hospitals that are not county 
  8.6   hospitals.  The board may also appropriate up to $25,000 from 
  8.7   the general revenue fund of the county for the acquisition of 
  8.8   land and construction of municipally owned nursing homes within 
  8.9   the county.  
  8.10     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  8.11  following final enactment. 
  8.12     Sec. 10.  Minnesota Statutes 2000, section 376.08, 
  8.13  subdivision 2, is amended to read: 
  8.14     Subd. 2.  [REMODELING OR ADDITIONS.] A county hospital may 
  8.15  by majority vote of its board of commissioners, or if the 
  8.16  hospital has been leased to another entity under section 376.06, 
  8.17  subdivision 1, or 447.47, by majority vote of the board of 
  8.18  directors of that entity, enter into projects for the 
  8.19  construction of an addition or remodeling to its presently 
  8.20  existing facility or the acquisition of equipment as described 
  8.21  in this subdivision without complying with the dollar limitation 
  8.22  of subdivision 1 or the election requirements of section 
  8.23  376.03.  This subdivision applies only to projects in which the 
  8.24  funds for the project are derived from dedicated, restricted, or 
  8.25  other designated accounts or, from the hospital's depreciation 
  8.26  fund and do not require incurring debt by the county through, or 
  8.27  from the issuance of bonds or otherwise authorized under other 
  8.28  law.  An addition to a current hospital under this subdivision 
  8.29  may include construction of buildings physically separate from 
  8.30  the present hospital building, as well as additions to the 
  8.31  present building, if the new buildings are constructed on the 
  8.32  hospital's existing premises. 
  8.33     This subdivision does not affect the ability of the 
  8.34  hospital board to approve funds for improvements or remodeling 
  8.35  of a hospital facility under other law. 
  8.36     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  9.1   following final enactment. 
  9.2      Sec. 11.  Minnesota Statutes 2000, section 376.08, 
  9.3   subdivision 3, is amended to read: 
  9.4      Subd. 3.  [LIMITATION ON HOSPITAL CAPACITY.] Section 
  9.5   144.551 applies to any project authorized by subdivision 2 or 4. 
  9.6   Subdivision Subdivisions 2 does and 4 do not authorize an 
  9.7   increase in the license capacity of the hospital or the 
  9.8   licensing, relocation, or redistribution of hospital beds except 
  9.9   as provided by section 144.551, subdivision 1, paragraph (b). 
  9.10     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  9.11  following final enactment. 
  9.12     Sec. 12.  Minnesota Statutes 2000, section 376.08, is 
  9.13  amended by adding a subdivision to read: 
  9.14     Subd. 4.  [NO ELECTION FOR EXPENDITURE OF CERTAIN BOND 
  9.15  PROCEEDS.] Notwithstanding section 376.03, a county may by vote 
  9.16  of the majority of the board of county commissioners acquire, 
  9.17  construct, remodel, renovate, and equip hospital facilities to 
  9.18  the extent of money derived from general obligation bonds 
  9.19  authorized for that purpose by an election under section 475.58, 
  9.20  capital improvement bonds issued under a capital improvement 
  9.21  plan approved in accordance with section 373.40, or revenue 
  9.22  bonds issued under sections 447.45 to 447.50. 
  9.23     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  9.24  following final enactment. 
  9.25     Sec. 13.  Minnesota Statutes 2000, section 376.09, is 
  9.26  amended to read: 
  9.27     376.09 [AID TO HOSPITALS IN COUNTIES HAVING NO COUNTY 
  9.28  HOSPITAL.] 
  9.29     In any county in which there is no county hospital, or a 
  9.30  county hospital is leased to a nonprofit or governmental 
  9.31  hospital organization pursuant to section 376.06, subdivision 1, 
  9.32  or 447.47, the county board may appropriate and pay money from 
  9.33  the general fund of the county, for the construction, 
  9.34  maintenance, and operation of a private, nonprofit, or public 
  9.35  hospital in the county for the treatment of sick, diseased, and 
  9.36  injured persons.  Admission preference shall always be given to 
 10.1   patients who are, in whole or in part, public charges, and are 
 10.2   sent to the hospital by the county board. 
 10.3      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 10.4   following final enactment. 
 10.5      Sec. 14.  Minnesota Statutes 2000, section 383B.79, is 
 10.6   amended by adding a subdivision to read: 
 10.7      Subd. 5.  [FINANCING.] Hennepin county may appropriate 
 10.8   funds for any of the activities described in subdivision 1, 
 10.9   whether or not state funds are appropriated for the activity.  
 10.10  Hennepin county may include any part of the costs of a project 
 10.11  described in section 469.002, subdivision 12, in a capital 
 10.12  improvement plan adopted under section 373.40, and may issue 
 10.13  bonds for such purposes pursuant to and subject to the 
 10.14  procedures and limitations set forth in section 373.40, whether 
 10.15  or not the capital improvement to be financed is to be owned by 
 10.16  the county or any other governmental entity.  Such purposes are 
 10.17  in addition to the capital improvements described in section 
 10.18  373.40, but shall not include light rail transit, commuter rail, 
 10.19  or any activity related to either of those, or a sports facility 
 10.20  building designed or used primarily for professional sports.  No 
 10.21  funds appropriated under this subdivision may be used to pay 
 10.22  operating expenses. 
 10.23     Sec. 15.  Minnesota Statutes 2000, section 473.39, is 
 10.24  amended by adding a subdivision to read: 
 10.25     Subd. 1h.  [OBLIGATIONS.] After July 1, 2001, in addition 
 10.26  to the authority in subdivisions 1a, 1b, 1c, 1d, 1e, and 1g, the 
 10.27  council may issue certificates of indebtedness, bonds, or other 
 10.28  obligations under this section in an amount not exceeding 
 10.29  $44,000,000 for capital expenditures as prescribed in the 
 10.30  council's regional transit master plan and transit capital 
 10.31  improvement program and for related costs, including the costs 
 10.32  of issuance and sale of the obligations, but not for computer 
 10.33  software, or for construction, maintenance, or operation of 
 10.34  light rail transit or commuter rail, or construction or 
 10.35  maintenance of busways.  
 10.36     <b>[EFFECTIVE DATE; APPLICATION.]</b> This section is effective 
 11.1   the day following final enactment and applies in the counties of 
 11.2   Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 
 11.3      Sec. 16.  Minnesota Statutes 2000, section 474A.02, 
 11.4   subdivision 8, is amended to read: 
 11.5      Subd. 8.  [FEDERAL TAX LAW.] "Federal tax law" means those 
 11.6   provisions of the Internal Revenue Code of 1986, as 
 11.7   amended through December 31, 1990, that limit the aggregate 
 11.8   amount of obligations of a specified type or types which may be 
 11.9   issued by an issuer during a calendar year whose interest is 
 11.10  excluded from gross income for purposes of federal income 
 11.11  taxation. 
 11.12     Sec. 17.  Minnesota Statutes 2000, section 474A.02, 
 11.13  subdivision 13a, is amended to read: 
 11.14     Subd. 13a.  [SMALL ISSUE POOL.] "Small issue pool" means 
 11.15  the amount of the annual volume cap allocated under section 
 11.16  474A.061, that is available for the issuance of enterprise zone 
 11.17  facility bonds authorized under Public Law Number 103-66, 
 11.18  section 13301, small issue bonds to finance manufacturing 
 11.19  projects, and the agricultural development bond beginning farmer 
 11.20  and agricultural business enterprise loan program authorized in 
 11.21  sections 41C.01 to 41C.13, and student loan bonds issued by the 
 11.22  Minnesota higher education services office. 
 11.23     Sec. 18.  Minnesota Statutes 2000, section 474A.02, 
 11.24  subdivision 22a, is amended to read: 
 11.25     Subd. 22a.  [PUBLIC FACILITIES POOL.] "Public facilities 
 11.26  pool" means the amount of the annual volume cap allocated under 
 11.27  section 474A.061, which is available for the issuance of public 
 11.28  facility bonds or student loan bonds. 
 11.29     Sec. 19.  Minnesota Statutes 2000, section 474A.02, 
 11.30  subdivision 22b, is amended to read: 
 11.31     Subd. 22b.  [PUBLIC FACILITIES PROJECT.] "Public facilities 
 11.32  project" means any publicly owned facility, or facility owned by 
 11.33  a nonprofit organization that is used for district heating or 
 11.34  cooling, that is eligible to be financed with the proceeds of 
 11.35  public facilities bonds as defined under section 474A.02, 
 11.36  subdivision 23a. 
 12.1      Sec. 20.  Minnesota Statutes 2000, section 474A.02, 
 12.2   subdivision 23a, is amended to read: 
 12.3      Subd. 23a.  [QUALIFIED BONDS.] "Qualified bonds" means the 
 12.4   specific type or types of obligations that are subject to the 
 12.5   annual volume cap.  Qualified bonds include the following types 
 12.6   of obligations as defined in federal tax law: 
 12.7      (a) "public facility bonds" means "exempt facility bonds" 
 12.8   as defined in federal tax law, except for residential rental 
 12.9   project bonds, which are those obligations issued to finance 
 12.10  airports, docks and wharves, mass commuting facilities, 
 12.11  facilities for the furnishing of water, sewage facilities, solid 
 12.12  waste disposal facilities, facilities for the local furnishing 
 12.13  of electric energy or gas, local district heating or cooling 
 12.14  facilities, and qualified hazardous waste facilities.  New bonds 
 12.15  and other obligations are ineligible to receive state 
 12.16  allocations or entitlement authority for public facility 
 12.17  projects under this section if they have been issued:  
 12.18     (1) for the purpose of refinancing, refunding, or otherwise 
 12.19  defeasing existing debt; and 
 12.20     (2) more than one calendar year prior to the date of 
 12.21  application; 
 12.22     (b) "residential rental project bonds" which are those 
 12.23  obligations issued to finance qualified residential rental 
 12.24  projects; 
 12.25     (c) "mortgage bonds"; 
 12.26     (d) "small issue bonds" issued to finance manufacturing 
 12.27  projects and the acquisition or improvement of agricultural real 
 12.28  or personal property under sections 41C.01 to 41C.13; 
 12.29     (e) "student loan bonds" issued by or on behalf of the 
 12.30  Minnesota higher education services office; 
 12.31     (f) "redevelopment bonds"; 
 12.32     (g) "governmental bonds" with a nonqualified amount in 
 12.33  excess of $15,000,000 as set forth in section 141(b)5 of federal 
 12.34  tax law; and 
 12.35     (h) "enterprise zone facility bonds" issued to finance 
 12.36  facilities located within empowerment zones or enterprise 
 13.1   communities, as authorized under Public Law Number 103-66, 
 13.2   section 13301. 
 13.3      Sec. 21.  Minnesota Statutes 2000, section 474A.03, 
 13.4   subdivision 1, is amended to read: 
 13.5      Subdivision 1.  [UNDER FEDERAL TAX LAW; ALLOCATIONS.] At 
 13.6   the beginning of each calendar year after December 31, 1997 
 13.7   2001, the commissioner shall determine the aggregate dollar 
 13.8   amount of the annual volume cap under federal tax law for the 
 13.9   calendar year, and of this amount the commissioner shall make 
 13.10  the following allocation:  
 13.11     (1) $63,000,000 $74,530,000 to the small issue pool; 
 13.12     (2) $59,000,000 $122,060,000 to the housing pool, 
 13.13  $37,000,000 of which 31 percent of the adjusted allocation is 
 13.14  reserved until the day after the first last Monday in February 
 13.15  July for single-family housing programs; 
 13.16     (3) $10,500,000 $12,750,000 to the public facilities pool; 
 13.17  and 
 13.18     (4) amounts to be allocated as provided in subdivision 2a.  
 13.19     If the annual volume cap is greater or less than the amount 
 13.20  of bonding authority allocated under clauses (1) to (4) and 
 13.21  subdivision 2a, paragraph (a), clauses (1) to (4), the 
 13.22  allocation must be adjusted so that each adjusted allocation is 
 13.23  the same percentage of the annual volume cap as each original 
 13.24  allocation is of the total bonding authority originally 
 13.25  allocated. 
 13.26     Sec. 22.  Minnesota Statutes 2000, section 474A.03, 
 13.27  subdivision 2a, is amended to read: 
 13.28     Subd. 2a.  [ENTITLEMENT ISSUER ALLOCATION.] (a) The 
 13.29  commissioner shall make the following allocation to the 
 13.30  Minnesota housing finance agency and the following cities and 
 13.31  county:  
 13.32     (1) $53,750,000 $84,940,000 per year to the Minnesota 
 13.33  housing finance agency, less any amount received in the previous 
 13.34  year under section 474A.091, subdivision 6; 
 13.35     (2) $21,000,000 $33,190,000 per year to the city of 
 13.36  Minneapolis; 
 14.1      (3) $15,750,000 $24,890,000 per year to the city of Saint 
 14.2   Paul; and 
 14.3      (4) $10,500,000 $16,600,000 per year to the Dakota county 
 14.4   community development agency for the county of Dakota and all 
 14.5   political subdivisions located within the county. 
 14.6      (b) Entitlement allocations provided under this subdivision 
 14.7   must be used for mortgage bonds, mortgage credit certificates, 
 14.8   public facility bonds, or residential rental project bonds, 
 14.9   except that entitlement issuers may also use their allocations 
 14.10  for public facility bonds, and may carry forward their 
 14.11  allocations for any qualified bond as defined under section 
 14.12  474A.02, subdivision 23a. 
 14.13     (c) Data on the home purchase price amount, mortgage 
 14.14  amount, income, household size, and race of the households 
 14.15  served with the proceeds of mortgage revenue bonds and mortgage 
 14.16  credit certificates in the previous year must be submitted by 
 14.17  each entitlement issuer to the Minnesota housing finance agency 
 14.18  by December 31 of each year.  Compliance by the Minnesota 
 14.19  housing finance agency with the provisions of section 462A.073, 
 14.20  subdivision 5, shall be deemed compliance with the reporting 
 14.21  requirements of this subdivision. 
 14.22     Sec. 23.  Minnesota Statutes 2000, section 474A.03, 
 14.23  subdivision 4, is amended to read: 
 14.24     Subd. 4.  [APPLICATION FEE.] Every entitlement issuer and 
 14.25  other issuer shall pay to the commissioner a nonrefundable 
 14.26  application fee to offset the state cost of program 
 14.27  administration.  The application fee is $20 for each $100,000 of 
 14.28  entitlement or allocation requested, with the request rounded to 
 14.29  the nearest $100,000.  The minimum fee is $20.  Fees received by 
 14.30  the commissioner must be credited to the general fund.  
 14.31  Application fees for projects of entitlement issuers must be 
 14.32  submitted to the commissioner with the notice of issuance of 
 14.33  bonds, notice of use of mortgage credit certificates, and notice 
 14.34  of carry forward.  Each entitlement issuer must pay its 
 14.35  application fee in full for that calendar year to the 
 14.36  commissioner no later than when the first notice of issuance of 
 15.1   bonds, notice of use of mortgage credit certificates, or notice 
 15.2   of carry forward is submitted to the commissioner by that issuer.
 15.3      Sec. 24.  Minnesota Statutes 2000, section 474A.04, 
 15.4   subdivision 1a, is amended to read: 
 15.5      Subd. 1a.  [ENTITLEMENT RESERVATIONS; CARRYFORWARD; 
 15.6   DEDUCTION.] Any amount returned by an entitlement issuer before 
 15.7   July 15 shall be reallocated through the housing pool.  Any 
 15.8   amount returned on or after July 15 shall be reallocated through 
 15.9   the unified pool.  An amount returned after the last Monday in 
 15.10  November shall be reallocated to the Minnesota housing finance 
 15.11  agency.  Any amount of bonding authority that an entitlement 
 15.12  issuer carries forward under federal tax law that is not 
 15.13  permanently issued or for which the governing body of the 
 15.14  entitlement issuer has not enacted a resolution electing to use 
 15.15  the authority for mortgage credit certificates by July 15 and 
 15.16  has not provided a notice of issue to the commissioner before 
 15.17  4:30 p.m. on the last business day in December of the succeeding 
 15.18  calendar year shall be deducted from the entitlement allocation 
 15.19  for that entitlement issuer for the current calendar year.  Any 
 15.20  amount deducted from an entitlement issuer's allocation under 
 15.21  this subdivision shall be reallocated through the unified pool.  
 15.22  An entitlement issuer must permanently issue all carryforward 
 15.23  authority or enact a resolution electing to use all carryforward 
 15.24  authority for mortgage credit certificates prior to issuing any 
 15.25  current year authority of that entitlement issuer in the next 
 15.26  succeeding calendar year.  Any amount deducted from an 
 15.27  entitlement issuer's allocation under this subdivision shall be 
 15.28  reallocated to other entitlement issuers, the housing pool, the 
 15.29  small issue pool, and the public facilities pool on a 
 15.30  proportional basis consistent with section 474A.03. 
 15.31     Sec. 25.  Minnesota Statutes 2000, section 474A.04, 
 15.32  subdivision 5, is amended to read: 
 15.33     Subd. 5.  [NOTICE OF ENTITLEMENT ALLOCATION.] As soon as 
 15.34  possible in each calendar year, the commissioner shall provide 
 15.35  to each entitlement issuer a written notice of the amount of its 
 15.36  post on the department's Web site the amount of each entitlement 
 16.1   allocation.  
 16.2      Sec. 26.  Minnesota Statutes 2000, section 474A.045, is 
 16.3   amended to read: 
 16.4      474A.045 [SCORING SYSTEM FOR ENTERPRISE ZONE FACILITY 
 16.5   PROJECTS AND MANUFACTURING PROJECTS.] 
 16.6      The following criteria must be used in determining the 
 16.7   allocation of enterprise zone facility bonds and small issue 
 16.8   bonds for manufacturing projects.  The issuer must prepare and 
 16.9   submit to the commissioner a public purpose scoring worksheet 
 16.10  that presents the data and methods used in determining the total 
 16.11  score under this section.  The total score is the sum of the 
 16.12  following: 
 16.13     (1) the number of direct new jobs in the state generated by 
 16.14  the proposed project for the next two years per $100,000 of 
 16.15  proposed allocation multiplied by 15; 
 16.16     (2) the number of direct existing jobs in the state 
 16.17  multiplied by .625 due to the proposed project for the next two 
 16.18  years per $100,000 of proposed allocation multiplied by 15; 
 16.19     (3) the average hourly wage paid to employees by the 
 16.20  proposed project for the next two years, exclusive of benefits 
 16.21  mandated by law, based on the following scale: 
 16.22  Wages paid per hour             $ 8    $10    $12    $15 
 16.23  Non-Metro area points awarded    10     15     20     20 
 16.24  Seven-County Metro Area 
 16.25  points awarded                    0     10     15     20 
 16.26     For purposes of this section, the seven-county metropolitan 
 16.27  area includes Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, 
 16.28  and Washington counties; 
 16.29     (4) the quotient of the estimated total net increase in 
 16.30  property taxes generated in the state by the project in the 
 16.31  first full year of operation divided by the proposed bond 
 16.32  allocation, multiplied by 500; and 
 16.33     (5) the seasonally unadjusted unemployment rate in the 
 16.34  community where the proposed project is located measured as a 
 16.35  percent of the state's unemployment rate, multiplied by ten. 
 16.36     The community seasonally unadjusted unemployment rate used 
 17.1   in determining the points under clause (5) must be the most 
 17.2   recent rate for the city or county in which the proposed project 
 17.3   is located, as provided by the commissioner of economic security.
 17.4      (6) 20 points for projects that locate in an incorporated 
 17.5   area or a planned urban growth area as defined by section 
 17.6   462.352, subdivision 18; 
 17.7      (7) 20 points for brownfield projects located in a state or 
 17.8   federal Superfund site, a voluntary investigation and cleanup 
 17.9   site, or a brownfield site, all as defined by the Minnesota 
 17.10  pollution control agency; and 
 17.11     (8) 20 points for projects with favorable environmental 
 17.12  citizenship as evidenced by no nonforgivable or combination 
 17.13  administrative penalty orders, stipulation agreements, consent 
 17.14  decrees, or other enforcement orders containing a monetary 
 17.15  penalty by the Minnesota pollution control agency over the past 
 17.16  three years or pending at the time of application. 
 17.17     Sec. 27.  Minnesota Statutes 2000, section 474A.047, 
 17.18  subdivision 1, is amended to read: 
 17.19     Subdivision 1.  [ELIGIBILITY.] (a) An issuer may only use 
 17.20  the proceeds from residential rental bonds if the proposed 
 17.21  project meets one of the following requirements: 
 17.22     (1) the proposed project is a single room occupancy project 
 17.23  and all the units of the project will be occupied by individuals 
 17.24  whose incomes at the time of their initial residency in the 
 17.25  project are 50 percent or less of the greater of the statewide 
 17.26  or county median income adjusted for household size as 
 17.27  determined by the federal Department of Housing and Urban 
 17.28  Development; 
 17.29     (2) the proposed project is a multifamily project where at 
 17.30  least 75 percent of the units have two or more bedrooms and at 
 17.31  least one-third of the 75 percent have three or more bedrooms; 
 17.32  or 
 17.33     (3) the proposed project is a multifamily project that 
 17.34  meets the following requirements: 
 17.35     (i) the proposed project is the rehabilitation of an 
 17.36  existing building which meets the requirements for minimum 
 18.1   rehabilitation expenditures in sections 42(e)(2) and 42(e)(3)(A) 
 18.2   of the Internal Revenue Code; 
 18.3      (ii) the proposed project involves participation by the 
 18.4   Minnesota housing finance agency or a local unit of government 
 18.5   in the financing of the acquisition or rehabilitation of the 
 18.6   project.  For purposes of this subdivision, "participation" 
 18.7   means an activity other than the issuance of the bonds; and 
 18.8      (iii) the proposed project must be occupied by individuals 
 18.9   or families whose incomes at the time of their initial residency 
 18.10  in the project meet the requirements of section 42(g) of the 
 18.11  Internal Revenue Code. 
 18.12     (1) the proposed residential rental project meets the 
 18.13  requirements of section 142(d) of the Internal Revenue Code 
 18.14  regarding the incomes of the occupants of the housing; and 
 18.15     (2) the maximum rent for at least 20 percent of the units 
 18.16  in the proposed residential rental project do not exceed the 
 18.17  area fair market rent or exception fair market rents for 
 18.18  existing housing, if applicable, as established by the federal 
 18.19  Department of Housing and Urban Development. 
 18.20     (b) The maximum rent for a proposed single room occupancy 
 18.21  unit under paragraph (a), clause (1), is 30 percent of the 
 18.22  amount equal to 30 percent of the greater of the statewide or 
 18.23  county median income for a one-member household as determined by 
 18.24  the federal Department of Housing and Urban Development.  The 
 18.25  maximum rent for at least 75 percent of the units of a 
 18.26  multifamily project under paragraph (a), clause (2), is 30 
 18.27  percent of the amount equal to 50 percent of the greater of the 
 18.28  statewide or county median income as determined by the federal 
 18.29  Department of Housing and Urban Development based on a household 
 18.30  size with 1.5 persons per bedroom. 
 18.31     (c) The proceeds from residential rental bonds may be used 
 18.32  for a project for which project-based federal rental assistance 
 18.33  payments are made only if: 
 18.34     (1) the owner of the project enters into a binding 
 18.35  agreement with the Minnesota housing finance agency under which 
 18.36  the owner is obligated to extend any existing low-income 
 19.1   affordability restrictions and any contract or agreement for 
 19.2   rental assistance payments for the maximum term permitted, 
 19.3   including any renewals thereof; and 
 19.4      (2) the Minnesota housing finance agency certifies that 
 19.5   project reserves will be maintained at closing of the bond issue 
 19.6   and budgeted in future years at the lesser of: 
 19.7      (i) the level described in Minnesota Rules, part 4900.0010, 
 19.8   subpart 7, item A, subitem (2), effective May 1, 1997; or 
 19.9      (ii) the level of project reserves available prior to the 
 19.10  bond issue, provided that additional money is available to 
 19.11  accomplish repairs and replacements needed at the time of bond 
 19.12  issue. 
 19.13     Sec. 28.  Minnesota Statutes 2000, section 474A.047, 
 19.14  subdivision 2, is amended to read: 
 19.15     Subd. 2.  [15-YEAR AGREEMENT.] Prior to the issuance of 
 19.16  residential rental bonds, the developer of the project for which 
 19.17  the bond proceeds will be used must enter into a 15-year 
 19.18  agreement with the issuer that specifies the maximum rental 
 19.19  rates of the rent-restricted units in the project and the income 
 19.20  levels of the residents of the project occupying 
 19.21  income-restricted units.  The Such rental rates and income 
 19.22  levels must be within the limitations established under 
 19.23  subdivision 1.  The developer must annually certify to the 
 19.24  issuer over the term of the agreement that the rental rates for 
 19.25  the rent-restricted units are within the limitations under 
 19.26  subdivision 1.  The issuer may request individual certification 
 19.27  of the income of all residents of the project income-restricted 
 19.28  units.  The commissioner may request from the issuer a copy of 
 19.29  the annual certification prepared by the developer.  The 
 19.30  commissioner may require the issuer to request individual 
 19.31  certification of all residents of the project income-restricted 
 19.32  units. 
 19.33     Sec. 29.  Minnesota Statutes 2000, section 474A.061, 
 19.34  subdivision 1, is amended to read: 
 19.35     Subdivision 1.  [APPLICATION.] (a) An issuer may apply for 
 19.36  an allocation under this section by submitting to the department 
 20.1   an application on forms provided by the department, accompanied 
 20.2   by (1) a preliminary resolution, (2) a statement of bond counsel 
 20.3   that the proposed issue of obligations requires an allocation 
 20.4   under this chapter and the Internal Revenue Code, (3) the type 
 20.5   of qualified bonds to be issued, (4) an application deposit in 
 20.6   the amount of one percent of the requested allocation before the 
 20.7   last Monday in July, or in the amount of two percent of the 
 20.8   requested allocation on or after the last Monday in July, (5) a 
 20.9   public purpose scoring worksheet for manufacturing project and 
 20.10  enterprise zone facility project applications, and (6) for 
 20.11  residential rental projects, a statement from the applicant or 
 20.12  bond counsel as to whether the project preserves existing 
 20.13  federally subsidized housing for residential rental project 
 20.14  applications and whether the project is restricted to persons 
 20.15  who are 55 years of age or older.  The issuer must pay the 
 20.16  application deposit by a check made payable to the department of 
 20.17  finance.  The Minnesota housing finance agency, the Minnesota 
 20.18  rural finance authority, and the Minnesota higher education 
 20.19  services office may apply for and receive an allocation under 
 20.20  this section without submitting an application deposit. 
 20.21     (b) An entitlement issuer may not apply for an allocation 
 20.22  from the housing pool or from the public facilities pool unless 
 20.23  it has either permanently issued bonds equal to the amount of 
 20.24  its entitlement allocation for the current year plus any amount 
 20.25  of bonding authority carried forward from previous years or 
 20.26  returned for reallocation all of its unused entitlement 
 20.27  allocation.  For purposes of this subdivision, its entitlement 
 20.28  allocation includes an amount obtained under section 474A.04, 
 20.29  subdivision 6.  This paragraph does not apply to an application 
 20.30  from the Minnesota housing finance agency for an allocation 
 20.31  under subdivision 2a for cities who choose to have the agency 
 20.32  issue bonds on their behalf.  
 20.33     (c) If an application is rejected under this section, the 
 20.34  commissioner must notify the applicant and return the 
 20.35  application deposit to the applicant within 30 days unless the 
 20.36  applicant requests in writing that the application be 
 21.1   resubmitted.  The granting of an allocation of bonding authority 
 21.2   under this section must be evidenced by a certificate of 
 21.3   allocation. 
 21.4      Sec. 30.  Minnesota Statutes 2000, section 474A.061, 
 21.5   subdivision 2a, is amended to read: 
 21.6      Subd. 2a.  [HOUSING POOL ALLOCATION.] (a) On the first 
 21.7   business day that falls on a Monday of the calendar year and the 
 21.8   first Monday in February Commencing on the second Tuesday in 
 21.9   January and continuing on each Monday through July 15, the 
 21.10  commissioner shall allocate available bonding authority in from 
 21.11  the housing pool to applications received by on or before the 
 21.12  Monday of the previous preceding week for residential rental 
 21.13  projects that are not restricted to persons who are 55 years of 
 21.14  age or older and that meet the eligibility criteria under 
 21.15  section 474A.047, except that allocations may be made to 
 21.16  projects that are restricted to persons who are 55 years of age 
 21.17  or older, if the project preserves existing federally subsidized 
 21.18  housing.  Projects that preserve existing federally subsidized 
 21.19  housing shall be allocated available bonding authority in the 
 21.20  housing pool for residential rental projects prior to the 
 21.21  allocation of available bonding authority to other eligible 
 21.22  residential rental projects.  Allocations of available bonding 
 21.23  authority from the housing pool for eligible residential rental 
 21.24  projects shall be awarded in the following order of priority:  
 21.25  (1) projects that preserve existing federally subsidized 
 21.26  housing; (2) projects that are not restricted to persons who are 
 21.27  55 years of age or older; and (3) other residential rental 
 21.28  projects.  Prior to May 15, no allocation shall be made to a 
 21.29  project restricted to persons who are 55 years of age or older.  
 21.30  If an issuer that receives an allocation under this paragraph 
 21.31  does not issue obligations equal to all or a portion of the 
 21.32  allocation received within 120 days of the allocation or returns 
 21.33  the allocation to the commissioner, the amount of the allocation 
 21.34  is canceled and returned for reallocation through the housing 
 21.35  pool or to the unified pool after July 15. 
 21.36     (b) After February January 1, and through February January 
 22.1   15, the Minnesota housing finance agency may accept applications 
 22.2   from cities for single-family housing programs which meet 
 22.3   program requirements as follows:  
 22.4      (1) the housing program must meet a locally identified 
 22.5   housing need and be economically viable; 
 22.6      (2) the adjusted income of home buyers may not exceed 80 
 22.7   percent of the greater of statewide or area median income as 
 22.8   published by the Department of Housing and Urban Development, 
 22.9   adjusted for household size; 
 22.10     (3) house price limits may not exceed the federal price 
 22.11  limits established for mortgage revenue bond programs.  Data on 
 22.12  the home purchase price amount, mortgage amount, income, 
 22.13  household size, and race of the households served in the 
 22.14  previous year's single-family housing program, if any, must be 
 22.15  included in each application; and 
 22.16     (4) for applicants who choose to have the agency issue 
 22.17  bonds on their behalf, an application fee pursuant to section 
 22.18  474A.03, subdivision 4, and an application deposit equal to one 
 22.19  percent of the requested allocation must be submitted to the 
 22.20  Minnesota housing finance agency before the agency forwards the 
 22.21  list specifying the amounts allocated to the commissioner under 
 22.22  paragraph (c) (d).  The agency shall submit the city's 
 22.23  application fee and application deposit to the commissioner when 
 22.24  requesting an allocation from the housing pool. 
 22.25     Applications by a consortium shall include the name of each 
 22.26  member of the consortium and the amount of allocation requested 
 22.27  by each member. 
 22.28     The Minnesota housing finance agency may accept 
 22.29  applications from June 15 through June 30 from cities for 
 22.30  single-family housing programs which meet program requirements 
 22.31  specified under clauses (1) to (4) if bonding authority is 
 22.32  available in the housing pool.  Applications will be accepted 
 22.33  from June 15 to June 30 only from cities that received an 
 22.34  allotment in the same calendar year and used at least 75 percent 
 22.35  of their allotment by June 1. 
 22.36     (c) Any amounts remaining in the housing pool after July 15 
 23.1   are available for single-family housing programs for cities that 
 23.2   applied in January and received an allocation under this section 
 23.3   in the same calendar year.  For a city that chooses to issue 
 23.4   bonds on its own behalf or pursuant to a joint powers agreement, 
 23.5   the agency must allot available bonding authority based on the 
 23.6   formula in paragraphs (d) and (f).  Allocations will be made 
 23.7   loan by loan, on a first come, first served basis 
 23.8   among applicant cities on whose behalf the Minnesota housing 
 23.9   finance agency issues bonds.  The agency must allot available 
 23.10  bonding authority.  
 23.11     Any city that received an allocation pursuant to paragraph 
 23.12  (f) in the same calendar year that wishes to issue bonds on its 
 23.13  own behalf or pursuant to a joint powers agreement for an amount 
 23.14  becoming available for single-family housing programs after July 
 23.15  15 shall notify the Minnesota housing finance agency by July 
 23.16  15.  The Minnesota housing finance agency shall notify each city 
 23.17  making a request of the amount of its allocation within three 
 23.18  business days after July 15.  The city must comply with 
 23.19  paragraph (f).  
 23.20     For purposes of paragraphs (a) to (g) (h), "city" means a 
 23.21  county or a consortium of local government units that agree 
 23.22  through a joint powers agreement to apply together for 
 23.23  single-family housing programs, and has the meaning given it in 
 23.24  section 462C.02, subdivision 6.  "Agency" means the Minnesota 
 23.25  housing finance agency.  
 23.26     (c) (d) The total amount of allocation for mortgage bonds 
 23.27  for one city is limited to the lesser of:  (i) the amount 
 23.28  requested, or (ii) the product of the total amount available for 
 23.29  mortgage bonds from the housing pool, multiplied by the ratio of 
 23.30  each applicant's population as determined by the most recent 
 23.31  estimate of the city's population released by the state 
 23.32  demographer's office to the total of all the applicants' 
 23.33  population, except that each applicant shall be allocated a 
 23.34  minimum of $100,000 regardless of the amount requested or the 
 23.35  amount determined under the formula in clause (ii).  If a city 
 23.36  applying for an allocation is located within a county that has 
 24.1   also applied for an allocation, the city's population will be 
 24.2   deducted from the county's population in calculating the amount 
 24.3   of allocations under this paragraph. 
 24.4      Upon determining the amount of each applicant's allocation, 
 24.5   the agency shall forward to the commissioner a list specifying 
 24.6   the amounts allotted to each application and application deposit 
 24.7   checks to the commissioner with all application fees and 
 24.8   deposits from applicants who choose to have the agency issue 
 24.9   bonds on their behalf. 
 24.10     Total allocations from the housing pool for single-family 
 24.11  housing programs may not exceed 31 percent of the adjusted 
 24.12  allocation to the housing pool until after July 15. 
 24.13     (d) (e) The agency may issue bonds on behalf of 
 24.14  participating cities.  The agency shall request an allocation 
 24.15  from the commissioner for all applicants who choose to have the 
 24.16  agency issue bonds on their behalf and the commissioner shall 
 24.17  allocate the requested amount to the agency.  The agency may 
 24.18  request an allocation at any time after the first Monday second 
 24.19  Tuesday in February January and through the last Monday in July, 
 24.20  but may request an allocation no later than the last Monday in 
 24.21  July.  After awarding an allocation and receiving a notice of 
 24.22  issuance for the mortgage bonds issued on behalf of the 
 24.23  participating cities, the commissioner shall transfer the 
 24.24  application deposits to the Minnesota housing finance agency to 
 24.25  be returned to the participating cities.  The commissioner 
 24.26  Minnesota housing finance agency shall return any application 
 24.27  deposit to a city that paid an application deposit under 
 24.28  paragraph (b), clause (4), but was not part of the list 
 24.29  forwarded to the commissioner under paragraph (c) (d).  
 24.30     (e) (f) A city may choose to issue bonds on its own behalf 
 24.31  or through a joint powers agreement or may use bonding authority 
 24.32  for mortgage credit certificates and may request an allocation 
 24.33  from the commissioner by forwarding an application with an 
 24.34  application fee pursuant to section 474A.03, subdivision 4, and 
 24.35  a one percent application deposit to the commissioner no later 
 24.36  than the Monday of the week preceding an allocation.  If the 
 25.1   total amount requested by all applicants exceeds the amount 
 25.2   available in the pool, the city may not receive a greater 
 25.3   allocation than the amount it would have received under the list 
 25.4   forwarded by the Minnesota housing finance agency to the 
 25.5   commissioner.  No city may request or receive an allocation from 
 25.6   the commissioner until the list under paragraph (c) (d) has been 
 25.7   forwarded to the commissioner.  A city must request an 
 25.8   allocation from the commissioner no later than 14 days before 
 25.9   the unified pool is created pursuant to section 474A.091, 
 25.10  subdivision 1 the last Monday in July.  On and after the first 
 25.11  Monday in February and through the last Monday in July, No city 
 25.12  may receive an allocation from the housing pool for mortgage 
 25.13  bonds which has not first applied to the Minnesota housing 
 25.14  finance agency.  The commissioner shall allocate the requested 
 25.15  amount to the city or cities subject to the limitations under 
 25.16  this paragraph.  
 25.17     If a city issues mortgage bonds from an allocation received 
 25.18  under this paragraph, the issuer must provide for the recycling 
 25.19  of funds into new loans.  If the issuer is not able to provide 
 25.20  for recycling, the issuer must notify the commissioner in 
 25.21  writing of the reason that recycling was not possible and the 
 25.22  reason the issuer elected not to have the Minnesota housing 
 25.23  finance agency issue the bonds.  "Recycling" means the use of 
 25.24  money generated from the repayment and prepayment of loans for 
 25.25  further eligible loans or for the redemption of bonds and the 
 25.26  issuance of current refunding bonds. 
 25.27     (f) (g) No entitlement city or county or city in an 
 25.28  entitlement county may apply for or be allocated authority to 
 25.29  issue mortgage bonds or use mortgage credit certificates from 
 25.30  the housing pool.  No city in an entitlement county may apply 
 25.31  for or be allocated authority to issue residential rental bonds 
 25.32  from the housing pool or the unified pool. 
 25.33     (g) (h) A city that does not use at least 50 percent of its 
 25.34  allotment by the date applications are due for the first 
 25.35  allocation that is made from the housing pool for single-family 
 25.36  housing programs in the immediately succeeding calendar year may 
 26.1   not apply to the housing pool for a single-family mortgage bond 
 26.2   or mortgage credit certificate program allocation that exceeds 
 26.3   the amount of its allotment for the preceding year that was used 
 26.4   by the city in the immediately preceding year or receive an 
 26.5   allotment from the housing pool in the succeeding calendar year 
 26.6   that exceeds the amount of its allotment for the preceding year 
 26.7   that was used in the preceding year.  The minimum allotment is 
 26.8   $100,000 for an allocation made prior to July 15, regardless of 
 26.9   the amount used in the preceding calendar year, except that a 
 26.10  city whose allocation in the preceding year was the minimum 
 26.11  amount of $100,000 and who did not use at least 50 percent of 
 26.12  its allocation from the preceding year is ineligible for an 
 26.13  allocation in the immediate succeeding calendar year.  Each 
 26.14  local government unit in a consortium must meet the requirements 
 26.15  of this paragraph. 
 26.16     Sec. 31.  Minnesota Statutes 2000, section 474A.061, 
 26.17  subdivision 2b, is amended to read: 
 26.18     Subd. 2b.  [SMALL ISSUE POOL ALLOCATION.] On the first 
 26.19  Monday in January that is a business day through the last Monday 
 26.20  in July Commencing on the second Tuesday in January and 
 26.21  continuing on each Monday through the last Monday in July, the 
 26.22  commissioner shall allocate available bonding authority from the 
 26.23  small issue pool on Monday of each week to applications received 
 26.24  on or before the Monday of the preceding week for manufacturing 
 26.25  projects and enterprise zone facility projects.  From the first 
 26.26  Monday in January that is a business day second Tuesday in 
 26.27  January through the last Monday in July, the commissioner shall 
 26.28  reserve $5,000,000 of the available bonding authority from the 
 26.29  small issue pool for applications for agricultural development 
 26.30  bond loan projects of the Minnesota rural finance authority.  
 26.31     Beginning in calendar year 2002, on the second Tuesday in 
 26.32  January through the last Monday in July, the commissioner shall 
 26.33  reserve $10,000,000 of available bonding authority in the small 
 26.34  issue pool for applications for student loan bonds of or on 
 26.35  behalf of the Minnesota higher education services office.  The 
 26.36  total amount of allocations for student loan bonds from the 
 27.1   small issue pool may not exceed $10,000,000 per year. 
 27.2      The commissioner shall reserve $10,000,000 until the day 
 27.3   after the last Monday in February, $10,000,000 until the day 
 27.4   after the last Monday in April, and $10,000,000 until the day 
 27.5   after the last Monday in June in the small issue pool 
 27.6   for enterprise zone facility projects and manufacturing 
 27.7   projects.  The amount of allocation provided to an issuer for a 
 27.8   specific enterprise zone facility project or manufacturing 
 27.9   project will be based on the number of points received for the 
 27.10  proposed project under the scoring system under section 
 27.11  474A.045.  Proposed projects that receive 50 points or more are 
 27.12  eligible for all of the proposed allocation.  Proposed projects 
 27.13  that receive less than 50 points are eligible to receive a 
 27.14  proportionally reduced share of the proposed authority, based 
 27.15  upon the number of points received. 
 27.16     If there are two or more applications for manufacturing and 
 27.17  enterprise zone facility projects from the small issue pool and 
 27.18  there is insufficient bonding authority to provide allocations 
 27.19  for all projects in any one week, the available bonding 
 27.20  authority shall be awarded based on the number of points awarded 
 27.21  a project under section 474A.045, with those projects receiving 
 27.22  the greatest number of points receiving allocation first.  If 
 27.23  two or more applications receive an equal number of points, 
 27.24  available bonding authority shall be awarded by lot unless 
 27.25  otherwise agreed to by the respective issuers. 
 27.26     Sec. 32.  Minnesota Statutes 2000, section 474A.061, 
 27.27  subdivision 2c, is amended to read: 
 27.28     Subd. 2c.  [PUBLIC FACILITIES POOL ALLOCATION.] From the 
 27.29  beginning of the calendar year and continuing for a period of 
 27.30  120 days, the commissioner shall reserve $5,000,000 $3,000,000 
 27.31  of the available bonding authority from the public facilities 
 27.32  pool for applications for public facilities projects to be 
 27.33  financed by the Western Lake Superior Sanitary District.  On the 
 27.34  first Monday in January that is a business day through the last 
 27.35  Monday in July Commencing on the second Tuesday in January and 
 27.36  continuing on each Monday through the last Monday in July, the 
 28.1   commissioner shall allocate available bonding authority from the 
 28.2   public facilities pool on Monday of each week to applications 
 28.3   for eligible public facilities projects received on or before 
 28.4   the Monday of the preceding week.  If there are two or more 
 28.5   applications for public facilities projects from the pool and 
 28.6   there is insufficient available bonding authority to provide 
 28.7   allocations for all projects in any one week, the available 
 28.8   bonding authority shall be awarded by lot unless otherwise 
 28.9   agreed to by the respective issuers. 
 28.10     Sec. 33.  Minnesota Statutes 2000, section 474A.061, 
 28.11  subdivision 4, is amended to read: 
 28.12     Subd. 4.  [RETURN OF ALLOCATION; DEPOSIT REFUND.] (a) If an 
 28.13  issuer that receives an allocation under this section determines 
 28.14  that it will not issue obligations equal to all or a portion of 
 28.15  the allocation received under this section within 120 days of 
 28.16  allocation or within the time period permitted by federal tax 
 28.17  law, whichever is less, the issuer must notify the department.  
 28.18  If the issuer notifies the department or the 120-day period 
 28.19  since allocation has expired prior to the last Monday in July, 
 28.20  the amount of allocation is canceled and returned for 
 28.21  reallocation through the pool from which it was originally 
 28.22  allocated.  If the issuer notifies the department or the 120-day 
 28.23  period since allocation has expired on or after the last Monday 
 28.24  in July, the amount of allocation is canceled and returned for 
 28.25  reallocation through the unified pool.  If the issuer notifies 
 28.26  the department after the last Monday in November, the amount of 
 28.27  allocation is canceled and returned for reallocation to the 
 28.28  Minnesota housing finance agency.  To encourage a competitive 
 28.29  application process, the commissioner shall reserve, for new 
 28.30  applications, the amount of allocation that is canceled and 
 28.31  returned for reallocation under this section for a minimum of 
 28.32  seven calendar days. 
 28.33     (b) An issuer that returns for reallocation all or a 
 28.34  portion of an allocation received under this section within 120 
 28.35  days of allocation shall receive within 30 days a refund equal 
 28.36  to:  
 29.1      (1) one-half of the application deposit for the amount of 
 29.2   bonding authority returned within 30 days of receiving 
 29.3   allocation; 
 29.4      (2) one-fourth of the application deposit for the amount of 
 29.5   bonding authority returned between 31 and 60 days of receiving 
 29.6   allocation; and 
 29.7      (3) one-eighth of the application deposit for the amount of 
 29.8   bonding authority returned between 61 and 120 days of receiving 
 29.9   allocation. 
 29.10     (c) No refund shall be available for allocations returned 
 29.11  120 or more days after receiving the allocation or beyond the 
 29.12  last Monday in November.  This subdivision does not apply to the 
 29.13  Minnesota housing finance agency or the Minnesota rural finance 
 29.14  authority.  
 29.15     Sec. 34.  [474A.062] [HESO 120-DAY ISSUANCE EXEMPTION.] 
 29.16     The Minnesota higher education services office is exempt 
 29.17  from the 120-day issuance requirements in this chapter and may 
 29.18  carry forward allocations for student loan bonds into three 
 29.19  successive calendar years, subject to carryforward notice 
 29.20  requirements of section 474A.131, subdivision 2.  The maximum 
 29.21  cumulative carryforward is limited to $25,000,000. 
 29.22     Sec. 35.  Minnesota Statutes 2000, section 474A.091, 
 29.23  subdivision 2, is amended to read: 
 29.24     Subd. 2.  [APPLICATION.] Issuers may apply for an 
 29.25  allocation under this section by submitting to the department an 
 29.26  application on forms provided by the department accompanied by 
 29.27  (1) a preliminary resolution, (2) a statement of bond counsel 
 29.28  that the proposed issue of obligations requires an allocation 
 29.29  under this chapter and the Internal Revenue Code, (3) the type 
 29.30  of qualified bonds to be issued, (4) an application deposit in 
 29.31  the amount of two percent of the requested allocation, and (5) a 
 29.32  public purpose scoring worksheet for manufacturing and 
 29.33  enterprise zone applications, and (6) for residential rental 
 29.34  projects, a statement from the applicant or bond counsel as to 
 29.35  whether the project preserves existing federally subsidized 
 29.36  housing and whether the project is restricted to persons who are 
 30.1   55 years of age or older.  The issuer must pay the application 
 30.2   deposit by check.  An entitlement issuer may not apply for an 
 30.3   allocation for public facility bonds, residential rental project 
 30.4   bonds, or mortgage bonds under this section unless it has either 
 30.5   permanently issued bonds equal to the amount of its entitlement 
 30.6   allocation for the current year plus any amount carried forward 
 30.7   from previous years or returned for reallocation all of its 
 30.8   unused entitlement allocation.  For purposes of this 
 30.9   subdivision, its entitlement allocation includes an amount 
 30.10  obtained under section 474A.04, subdivision 6. 
 30.11     Notwithstanding the restrictions imposed on entitlement 
 30.12  issuers under this subdivision, the Minnesota housing finance 
 30.13  agency may not apply for receive an allocation for mortgage 
 30.14  bonds under this section until after prior to the last first 
 30.15  Monday in August.  Notwithstanding the restrictions imposed on 
 30.16  unified pool allocations after September 1 under subdivision 3, 
 30.17  paragraph (c)(2), the Minnesota housing finance agency October, 
 30.18  but may be awarded allocations for mortgage bonds from the 
 30.19  unified pool on or after September 1 the first Monday in 
 30.20  October.  The Minnesota housing finance agency, the Minnesota 
 30.21  higher education services office, and the Minnesota rural 
 30.22  finance authority may apply for and receive an allocation under 
 30.23  this section without submitting an application deposit. 
 30.24     Sec. 36.  Minnesota Statutes 2000, section 474A.091, 
 30.25  subdivision 3, is amended to read: 
 30.26     Subd. 3.  [ALLOCATION PROCEDURE.] (a) The commissioner 
 30.27  shall allocate available bonding authority under this section on 
 30.28  the Monday of every other week beginning with the first Monday 
 30.29  in August through and on the last Monday in November.  
 30.30  Applications for allocations must be received by the department 
 30.31  by 4:30 p.m. on the Monday preceding the Monday on which 
 30.32  allocations are to be made.  If a Monday falls on a holiday, the 
 30.33  allocation will be made or the applications must be received by 
 30.34  the next business day after the holiday.  
 30.35     (b) On or before September 1, allocations shall be awarded 
 30.36  from the unified pool in the following order of priority: 
 31.1      (1) applications for enterprise zone facility bonds; 
 31.2      (2) applications for small issue bonds for manufacturing 
 31.3   projects; 
 31.4      (3) applications for small issue bonds for agricultural 
 31.5   development bond loan projects; 
 31.6      (4) applications for residential rental project bonds; 
 31.7      (5) applications for public facility projects funded by 
 31.8   public facility bonds; 
 31.9      (6) applications for redevelopment bonds; 
 31.10     (7) applications for mortgage bonds; and 
 31.11     (8) applications for governmental bonds. 
 31.12     Allocations for residential rental projects may only be 
 31.13  made during the first allocation in August.  The amount of 
 31.14  allocation provided to an issuer for a specific manufacturing 
 31.15  project will be based on the number of points received for the 
 31.16  proposed project under the scoring system under section 474A.045.
 31.17  Proposed manufacturing projects that receive 50 points or more 
 31.18  are eligible for all of the proposed allocation.  Proposed 
 31.19  manufacturing projects that receive less than 50 points under 
 31.20  section 474A.045 are only eligible to receive a proportionally 
 31.21  reduced share of the proposed authority, based upon the number 
 31.22  of points received.  
 31.23     (b) Prior to October 1, only the following applications 
 31.24  shall be awarded allocations from the unified pool.  Allocations 
 31.25  shall be awarded in the following order of priority: 
 31.26     (1) applications for residential rental project bonds; 
 31.27     (2) applications for small issue bonds for manufacturing 
 31.28  projects; and 
 31.29     (3) applications for small issue bonds for agricultural 
 31.30  development bond loan projects. 
 31.31     (c) On the first Monday in October through the last Monday 
 31.32  in November, allocations shall be awarded from the unified pool 
 31.33  in the following order of priority: 
 31.34     (1) applications for student loan bonds issued by or on 
 31.35  behalf of the Minnesota higher education services office; 
 31.36     (2) applications for mortgage bonds; 
 32.1      (3) applications for public facility projects funded by 
 32.2   public facility bonds; 
 32.3      (4) applications for small issue bonds for manufacturing 
 32.4   projects; 
 32.5      (5) applications for small issue bonds for agricultural 
 32.6   development bond loan projects; 
 32.7      (6) applications for residential rental project bonds; 
 32.8      (7) applications for enterprise zone facility bonds; 
 32.9      (8) applications for governmental bonds; and 
 32.10     (9) applications for redevelopment bonds. 
 32.11     (d) If there are two or more applications for manufacturing 
 32.12  projects from the unified pool and there is insufficient bonding 
 32.13  authority to provide allocations for all manufacturing projects 
 32.14  in any one allocation period, the available bonding authority 
 32.15  shall be awarded based on the number of points awarded a project 
 32.16  under section 474A.045 with those projects receiving the 
 32.17  greatest number of points receiving allocation first.  If two or 
 32.18  more applications for manufacturing projects receive an equal 
 32.19  amount of points, available bonding authority shall be awarded 
 32.20  by lot unless otherwise agreed to by the respective issuers. 
 32.21     (e) If there are two or more applications for enterprise 
 32.22  zone facility projects from the unified pool and there is 
 32.23  insufficient bonding authority to provide allocations for all 
 32.24  enterprise zone facility projects in any one allocation period, 
 32.25  the available bonding authority shall be awarded based on the 
 32.26  number of points awarded a project under section 474A.045 with 
 32.27  those projects receiving the greatest number of points receiving 
 32.28  allocation first.  If two or more applications for enterprise 
 32.29  zone facility projects receive an equal amount of points, 
 32.30  available bonding authority shall be awarded by lot unless 
 32.31  otherwise agreed to by the respective issuers. 
 32.32     (f) If there are two or more applications for residential 
 32.33  rental projects from the unified pool and there is insufficient 
 32.34  bonding authority to provide allocations for all residential 
 32.35  rental projects in any one allocation period, the available 
 32.36  bonding authority shall be awarded in the following order of 
 33.1   priority:  (1) projects that preserve existing federally 
 33.2   subsidized housing; (2) projects that are not restricted to 
 33.3   persons who are 55 years of age or older; and (3) other 
 33.4   residential rental projects. 
 33.5      (c)(1) (g) From the first Monday in August through the last 
 33.6   Monday in November, $20,000,000 of bonding authority or an 
 33.7   amount equal to the total annual amount of bonding authority 
 33.8   allocated to the small issue pool under section 474A.03, 
 33.9   subdivision 1, less the amount allocated to issuers from the 
 33.10  small issue pool for that year, whichever is less, is reserved 
 33.11  within the unified pool for small issue bonds to the extent such 
 33.12  amounts are available within the unified pool.  On the first 
 33.13  Monday in September through the last Monday in November, 
 33.14  $2,500,000 of bonding authority or an amount equal to the total 
 33.15  annual amount of bonding authority allocated to the public 
 33.16  facilities pool under section 474A.03, subdivision 1, less the 
 33.17  amount allocated to issuers from the public facilities pool for 
 33.18  that year, whichever is less, is reserved within the unified 
 33.19  pool for public facility bonds to the extent such amounts are 
 33.20  available within the unified pool.  
 33.21     (2) (h) The total amount of allocations for mortgage bonds 
 33.22  from the housing pool and the unified pool may not exceed: 
 33.23     (i) (1) $10,000,000 for any one city; or 
 33.24     (ii) (2) $20,000,000 for any number of cities in any one 
 33.25  county. 
 33.26     An allocation for mortgage bonds may be used for mortgage 
 33.27  credit certificates. 
 33.28     (d) After September 1, allocations shall be awarded from 
 33.29  the unified pool only for the following types of qualified bonds:
 33.30  small issue bonds, public facility bonds to finance publicly 
 33.31  owned facility projects, residential rental project bonds, and 
 33.32  enterprise zone facility bonds. 
 33.33     (i) The total amount of allocations for student loan bonds 
 33.34  from the unified pool may not exceed $10,000,000 per year. 
 33.35     (j) If there is insufficient bonding authority to fund all 
 33.36  projects within any qualified bond category other than 
 34.1   enterprise zone facility projects, manufacturing projects, and 
 34.2   residential rental projects, allocations shall be awarded by lot 
 34.3   unless otherwise agreed to by the respective issuers.  
 34.4      (k) If an application is rejected, the commissioner must 
 34.5   notify the applicant and return the application deposit to the 
 34.6   applicant within 30 days unless the applicant requests in 
 34.7   writing that the application be resubmitted.  
 34.8      (l) The granting of an allocation of bonding authority 
 34.9   under this section must be evidenced by issuance of a 
 34.10  certificate of allocation. 
 34.11     Sec. 37.  Minnesota Statutes 2000, section 474A.091, is 
 34.12  amended by adding a subdivision to read: 
 34.13     Subd. 3a.  [MORTGAGE BONDS.] (a) Bonding authority 
 34.14  remaining in the unified pool on October 1 is available for 
 34.15  single-family housing programs for cities that applied in 
 34.16  January and received an allocation under section 474A.061, 
 34.17  subdivision 2a, in the same calendar year.  The Minnesota 
 34.18  housing finance agency shall receive an allocation for mortgage 
 34.19  bonds pursuant to this section, minus any amounts for a city or 
 34.20  consortium that intends to issue bonds on its own behalf under 
 34.21  paragraph (c).  
 34.22     (b) The agency may issue bonds on behalf of participating 
 34.23  cities.  The agency shall request an allocation from the 
 34.24  commissioner for all applicants who choose to have the agency 
 34.25  issue bonds on their behalf and the commissioner shall allocate 
 34.26  the requested amount to the agency.  Allocations shall be 
 34.27  awarded by the commissioner each Monday commencing on the first 
 34.28  Monday in October through the last Monday in November for 
 34.29  applications received by 4:30 p.m. on the Monday of the week 
 34.30  preceding an allocation. 
 34.31     For cities who choose to have the agency issue bonds on 
 34.32  their behalf, allocations will be made loan by loan, on a first 
 34.33  come, first served basis among the cities.  The agency shall 
 34.34  submit an application fee pursuant to section 474A.03, 
 34.35  subdivision 4, and an application deposit equal to two percent 
 34.36  of the requested allocation to the commissioner when requesting 
 35.1   an allocation from the unified pool.  After awarding an 
 35.2   allocation and receiving a notice of issuance for mortgage bonds 
 35.3   issued on behalf of the participating cities, the commissioner 
 35.4   shall transfer the application deposit to the Minnesota housing 
 35.5   finance agency.  
 35.6      For purposes of paragraphs (a) to (d), "city" means a 
 35.7   county or a consortium of local government units that agree 
 35.8   through a joint powers agreement to apply together for 
 35.9   single-family housing programs, and has the meaning given it in 
 35.10  section 462C.02, subdivision 6.  "Agency" means the Minnesota 
 35.11  housing finance agency.  
 35.12     (c) Any city that received an allocation pursuant to 
 35.13  section 474A.061, subdivision 2a, paragraph (f), in the current 
 35.14  year that wishes to receive an additional allocation from the 
 35.15  unified pool and issue bonds on its own behalf or pursuant to a 
 35.16  joint powers agreement shall notify the Minnesota housing 
 35.17  finance agency by the third Monday in September.  The total 
 35.18  amount of allocation for mortgage bonds for a city choosing to 
 35.19  issue bonds on its own behalf or through a joint powers 
 35.20  agreement is limited to the lesser of:  (i) the amount 
 35.21  requested, or (ii) the product of the total amount available for 
 35.22  mortgage bonds from the unified pool, multiplied by the ratio of 
 35.23  the population of each city that applied in January and received 
 35.24  an allocation under section 474A.061, subdivision 2a, in the 
 35.25  same calendar year, as determined by the most recent estimate of 
 35.26  the city's population released by the state demographer's office 
 35.27  to the total of the population of all the cities that applied in 
 35.28  January and received an allocation under section 474A.061, 
 35.29  subdivision 2a, in the same calendar year.  If a city choosing 
 35.30  to issue bonds on its own behalf or through a joint powers 
 35.31  agreement is located within a county that has also chosen to 
 35.32  issue bonds on its own behalf or through a joint powers 
 35.33  agreement, the city's population will be deducted from the 
 35.34  county's population in calculating the amount of allocations 
 35.35  under this paragraph.  
 35.36     The Minnesota housing finance agency shall notify each city 
 36.1   choosing to issue bonds on its own behalf or pursuant to a joint 
 36.2   powers agreement of the amount of its allocation by October 15.  
 36.3   Upon determining the amount of the allocation of each choosing 
 36.4   to issue bonds on its own behalf or through a joint powers 
 36.5   agreement, the agency shall forward a list specifying the 
 36.6   amounts allotted to each city. 
 36.7      A city that chooses to issue bonds on its own behalf or 
 36.8   through a joint powers agreement may request an allocation from 
 36.9   the commissioner by forwarding an application with an 
 36.10  application fee pursuant to section 474A.03, subdivision 4, and 
 36.11  an application deposit equal to two percent of the requested 
 36.12  amount to the commissioner no later than 4:30 p.m. on the Monday 
 36.13  of the week preceding an allocation.  Allocations to cities that 
 36.14  choose to issue bonds on their own behalf shall be awarded by 
 36.15  the commissioner on the first Monday after October 15 through 
 36.16  the last Monday in November.  No city may receive an allocation 
 36.17  from the commissioner after the last Monday in November.  The 
 36.18  commissioner shall allocate the requested amount to the city or 
 36.19  cities subject to the limitations under this subdivision. 
 36.20     If a city issues mortgage bonds from an allocation received 
 36.21  under this paragraph, the issuer must provide for the recycling 
 36.22  of funds into new loans.  If the issuer is not able to provide 
 36.23  for recycling, the issuer must notify the commissioner in 
 36.24  writing of the reason that recycling was not possible and the 
 36.25  reason the issuer elected not to have the Minnesota housing 
 36.26  finance agency issue the bonds.  "Recycling" means the use of 
 36.27  money generated from the repayment and prepayment of loans for 
 36.28  further eligible loans or for the redemption of bonds and the 
 36.29  issuance of current refunding bonds. 
 36.30     (d) No entitlement city or county or city in an entitlement 
 36.31  county may apply for or be allocated authority to issue mortgage 
 36.32  bonds or use mortgage credit certificates from the unified pool. 
 36.33     (e) An allocation awarded to the agency for mortgage bonds 
 36.34  under this section may be carried forward by the agency into the 
 36.35  next succeeding calendar year subject to notice requirements 
 36.36  under section 474A.131 and is available until the last business 
 37.1   day in December of that succeeding calendar year. 
 37.2      Sec. 38.  Minnesota Statutes 2000, section 474A.091, 
 37.3   subdivision 4, is amended to read: 
 37.4      Subd. 4.  [MORTGAGE BONDS REMAINING BONDING AUTHORITY.] All 
 37.5   remaining bonding authority available for allocation under this 
 37.6   section on December 1, is allocated to the Minnesota housing 
 37.7   finance agency. 
 37.8      Sec. 39.  Minnesota Statutes 2000, section 474A.091, 
 37.9   subdivision 5, is amended to read: 
 37.10     Subd. 5.  [RETURN OF ALLOCATION; DEPOSIT REFUND.] (a) If an 
 37.11  issuer that receives an allocation under this section determines 
 37.12  that it will not issue obligations equal to all or a portion of 
 37.13  the allocation received under this section within 120 days of 
 37.14  the allocation or within the time period permitted by federal 
 37.15  tax law, whichever is less, the issuer must notify the 
 37.16  department.  If the issuer notifies the department or the 
 37.17  120-day period since allocation has expired prior to the last 
 37.18  Monday in November, the amount of allocation is canceled and 
 37.19  returned for reallocation through the unified pool.  If the 
 37.20  issuer notifies the department on or after the last Monday in 
 37.21  November, the amount of allocation is canceled and returned for 
 37.22  reallocation to the Minnesota housing finance agency.  To 
 37.23  encourage a competitive application process, the commissioner 
 37.24  shall reserve, for new applications, the amount of allocation 
 37.25  that is canceled and returned for reallocation under this 
 37.26  section for a minimum of seven calendar days. 
 37.27     (b) An issuer that returns for reallocation all or a 
 37.28  portion of an allocation received under this section within 120 
 37.29  days of the allocation shall receive within 30 days a refund 
 37.30  equal to:  
 37.31     (1) one-half of the application deposit for the amount of 
 37.32  bonding authority returned within 30 days of receiving the 
 37.33  allocation; 
 37.34     (2) one-fourth of the application deposit for the amount of 
 37.35  bonding authority returned between 31 and 60 days of receiving 
 37.36  the allocation; and 
 38.1      (3) one-eighth of the application deposit for the amount of 
 38.2   bonding authority returned between 61 and 120 days of receiving 
 38.3   the allocation. 
 38.4      (c) No refund of the application deposit shall be available 
 38.5   for allocations returned on or after the last Monday in November.
 38.6   This subdivision does not apply to the Minnesota housing finance 
 38.7   agency, or the Minnesota rural finance authority. 
 38.8      Sec. 40.  Minnesota Statutes 2000, section 474A.091, 
 38.9   subdivision 6, is amended to read: 
 38.10     Subd. 6.  [FINAL ALLOCATION; CARRYFORWARD.] Notwithstanding 
 38.11  the notice requirements of section 474A.131, subdivision 2, any 
 38.12  bonding authority remaining unissued by the Minnesota housing 
 38.13  finance agency on the last business day in December shall be 
 38.14  carried forward into the next calendar year by the commissioner 
 38.15  for the Minnesota housing finance agency in accordance with 
 38.16  section 474A.131, subdivision 2. 
 38.17     Sec. 41.  Minnesota Statutes 2000, section 474A.131, 
 38.18  subdivision 1, is amended to read: 
 38.19     Subdivision 1.  [NOTICE OF ISSUE.] Each issuer that issues 
 38.20  bonds with an allocation received under this chapter shall 
 38.21  provide a notice of issue to the department on forms provided by 
 38.22  the department stating: 
 38.23     (1) the date of issuance of the bonds; 
 38.24     (2) the title of the issue; 
 38.25     (3) the principal amount of the bonds; 
 38.26     (4) the type of qualified bonds under federal tax law; and 
 38.27     (5) the dollar amount of the bonds issued that were subject 
 38.28  to the annual volume cap; and 
 38.29     (6) for entitlement issuers, whether the allocation is from 
 38.30  current year entitlement authority or is from carry forward 
 38.31  authority. 
 38.32     For obligations that are issued as a part of a series of 
 38.33  obligations, a notice must be provided for each series.  A 
 38.34  penalty of one-half of the amount of the application deposit not 
 38.35  to exceed $5,000 shall apply to any issue of obligations for 
 38.36  which a notice of issue is not provided to the department within 
 39.1   five business days after issuance or before the last Monday in 
 39.2   December, whichever occurs first.  Within 30 days after receipt 
 39.3   of a notice of issue the department shall refund a portion of 
 39.4   the application deposit equal to one percent of the amount of 
 39.5   the bonding authority actually issued if a one percent 
 39.6   application deposit was made, or equal to two percent of the 
 39.7   amount of the bonding authority actually issued if a two percent 
 39.8   application deposit was made, less any penalty amount. 
 39.9      Sec. 42.  Minnesota Statutes 2000, section 474A.131, is 
 39.10  amended by adding a subdivision to read: 
 39.11     Subd. 1b.  [DEADLINE FOR ISSUANCE OF QUALIFIED BONDS.] If 
 39.12  an issuer fails to notify the department before 4:30 p.m. on the 
 39.13  last business day in December of issuance of obligations 
 39.14  pursuant to an allocation received for any qualified bond 
 39.15  project or issuance of an entitlement allocation, the allocation 
 39.16  is canceled and the bonding authority is allocated to the 
 39.17  Minnesota housing finance agency for carryforward by the 
 39.18  commissioner under section 474A.091, subdivision 6. 
 39.19     Sec. 43.  Minnesota Statutes 2000, section 474A.131, 
 39.20  subdivision 2, is amended to read: 
 39.21     Subd. 2.  [CARRYFORWARD NOTICE.] If an issuer intends to 
 39.22  carry forward an allocation received under this chapter, it must 
 39.23  notify the department in writing before 4:30 p.m. on the last 
 39.24  Monday of business day in December.  This notice requirement 
 39.25  does not apply to the Minnesota housing finance agency for the 
 39.26  carryforward of unallocated unified pool balances.  
 39.27     Sec. 44.  Minnesota Statutes 2000, section 474A.14, is 
 39.28  amended to read: 
 39.29     474A.14 [NOTICE OF AVAILABLE AUTHORITY.] 
 39.30     The department shall publish in the State Register a 
 39.31  provide at its official Web site a written notice of the amount 
 39.32  of bonding authority in the housing, small issue, and public 
 39.33  facilities pools as soon after January 1 as possible.  The 
 39.34  department shall publish in the State Register a provide at its 
 39.35  official Web site a written notice of the amount of bonding 
 39.36  authority available for allocation in the unified pool as soon 
 40.1   after August 1 as possible. 
 40.2      Sec. 45.  Minnesota Statutes 2000, section 475.54, 
 40.3   subdivision 1, is amended to read: 
 40.4      Subdivision 1.  [IN INSTALLMENTS; EXCEPTION; ANNUAL LIMIT.] 
 40.5   Except as provided in subdivision 3, 5a, 15, or 17, or as 
 40.6   expressly authorized in another law, all obligations of each 
 40.7   issue shall mature or be subject to mandatory sinking fund 
 40.8   redemption in installments, the first not later than three years 
 40.9   and the last not later than 30 years from the date of the issue; 
 40.10  or 40 years or the useful life of the asset, whichever is less, 
 40.11  for municipal water and wastewater treatment systems and 
 40.12  essential community facilities financed or guaranteed by the 
 40.13  United States Department of Agriculture.  No amount of principal 
 40.14  of the issue payable in any calendar year shall exceed five 
 40.15  times the an amount of equal to the smallest amount payable in 
 40.16  any preceding calendar year ending three years or more after the 
 40.17  issue date multiplied: 
 40.18     (1) by five, in the case of obligations maturing not later 
 40.19  than 25 years from the date of issue; and 
 40.20     (2) by six, in the case of obligations maturing 25 years or 
 40.21  later from the date of issue.  
 40.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 40.23  following final enactment. 
 40.24     Sec. 46.  Minnesota Statutes 2000, section 475.58, 
 40.25  subdivision 1, is amended to read: 
 40.26     Subdivision 1.  [APPROVAL BY ELECTORS; EXCEPTIONS.] 
 40.27  Obligations authorized by law or charter may be issued by any 
 40.28  municipality upon obtaining the approval of a majority of the 
 40.29  electors voting on the question of issuing the obligations, but 
 40.30  an election shall not be required to authorize obligations 
 40.31  issued: 
 40.32     (1) to pay any unpaid judgment against the municipality; 
 40.33     (2) for refunding obligations; 
 40.34     (3) for an improvement or improvement program, which 
 40.35  obligation is payable wholly or partly from the proceeds of 
 40.36  special assessments levied upon property specially benefited by 
 41.1   the improvement or by an improvement within the improvement 
 41.2   program, or of taxes levied upon the increased value of property 
 41.3   within a district for the development of which the improvement 
 41.4   is undertaken, including obligations which are the general 
 41.5   obligations of the municipality, if the municipality is entitled 
 41.6   to reimbursement in whole or in part from the proceeds of such 
 41.7   special assessments or taxes and not less than 20 percent of the 
 41.8   cost of the improvement or the improvement program is to be 
 41.9   assessed against benefited property or is to be paid from the 
 41.10  proceeds of federal grant funds or a combination thereof, or is 
 41.11  estimated to be received from such taxes within the district; 
 41.12     (4) payable wholly from the income of revenue producing 
 41.13  conveniences; 
 41.14     (5) under the provisions of a home rule charter which 
 41.15  permits the issuance of obligations of the municipality without 
 41.16  election; 
 41.17     (6) under the provisions of a law which permits the 
 41.18  issuance of obligations of a municipality without an election, 
 41.19  subject to the reverse referendum requirement in subdivision 1b; 
 41.20     (7) to fund pension or retirement fund liabilities pursuant 
 41.21  to section 475.52, subdivision 6; 
 41.22     (8) under a capital improvement plan under section 373.40; 
 41.23     (9) to fund facilities as provided in subdivision 3; and 
 41.24     (10) under sections 469.1813 to 469.1815 (property tax 
 41.25  abatement authority bonds). 
 41.26     Sec. 47.  Minnesota Statutes 2000, section 475.58, 
 41.27  subdivision 1a, is amended to read: 
 41.28     Subd. 1a.  [RESUBMISSION LIMITATION.] If the electors do 
 41.29  not approve the issuing of obligations at an election required 
 41.30  by subdivision 1 or subdivision 1b, the question of authorizing 
 41.31  the obligations for the same purpose and in the same amount may 
 41.32  not be submitted to the electors within a period of 180 days 
 41.33  from the date the election was held.  If the question of 
 41.34  authorizing the obligations for the same purpose and in the same 
 41.35  amount is not approved a second time it may not be submitted to 
 41.36  the electors within a period of one year after the second 
 42.1   election. 
 42.2      Sec. 48.  Minnesota Statutes 2000, section 475.58, is 
 42.3   amended by adding a subdivision to read: 
 42.4      Subd. 1b.  [REVERSE REFERENDUM REQUIRED.] Any authority 
 42.5   given to a statutory or home rule charter city, county, or town 
 42.6   in general or special law to issue general obligation bonds 
 42.7   under this chapter that is exempt from the election requirement 
 42.8   under subdivision 1, clause (6), is subject to the reverse 
 42.9   referendum requirement in this subdivision.  The city, county, 
 42.10  or town must publish a notice of its intention to issue the 
 42.11  bonds and the date and time of a hearing to obtain public 
 42.12  comment on the matter.  The notice must be published in the 
 42.13  official newspaper of the local government unit or in a 
 42.14  newspaper of general circulation in the local government's 
 42.15  jurisdiction.  The notice must be published at least 14 but not 
 42.16  more than 28 days before the date of the hearing.  The local 
 42.17  government unit may issue the bonds only upon obtaining approval 
 42.18  of a majority of the voters voting on the question of issuing 
 42.19  the obligations, if a petition requesting a vote on the issuance 
 42.20  is signed by voters equal to five percent of the votes cast in 
 42.21  the local government's last general election and is filed with 
 42.22  the chief clerical officer of the city, county, or town within 
 42.23  30 days after the public hearing.  The commissioner of revenue 
 42.24  shall prepare a suggested form of the question to be presented 
 42.25  at election. 
 42.26     Sec. 49.  Laws 1974, chapter 473, is amended to read: 
 42.27     Section 1.  [SCOTT COUNTY; HOUSING AND REDEVELOPMENT 
 42.28  AUTHORITY.] 
 42.29     (a) There is hereby created in Scott county a public body 
 42.30  corporate and politic, to be known as the Scott county housing 
 42.31  and redevelopment authority, having all the powers and duties of 
 42.32  a housing and redevelopment authority under the provisions 
 42.33  of the municipal housing and redevelopment act, Minnesota 
 42.34  Statutes, sections 462.411 to 462.711, and acts amendatory 
 42.35  thereof; which act applies to the county of Scott 469.001 to 
 42.36  469.047, and having those powers of an economic development 
 43.1   authority under the provisions of Minnesota Statutes, sections 
 43.2   469.090 to 469.180, as are granted to it by Scott county as 
 43.3   provided below.  For the purposes of applying the provisions of 
 43.4   the municipal housing and redevelopment act Minnesota Statutes, 
 43.5   sections 469.001 to 469.047 and 469.090 to 469.180, to Scott 
 43.6   county, the county has all the powers and duties of a 
 43.7   municipality, the county board has all of the powers and duties 
 43.8   of a governing body, the chairman of the county board has all of 
 43.9   the powers and duties of a mayor, and the area of operation 
 43.10  includes the area within the territorial boundaries of the 
 43.11  county. 
 43.12     Sec. 2.  [APPLICATION.] 
 43.13     Subdivision 1.  This act shall not limit or restrict any 
 43.14  existing housing and redevelopment authority or prevent a 
 43.15  municipality from creating an authority.  The county shall not 
 43.16  exercise jurisdiction in any municipality where a municipal 
 43.17  housing and redevelopment authority is established. 
 43.18     Subd. 2.  A municipal housing and redevelopment authority 
 43.19  may request the Scott county housing and redevelopment authority 
 43.20  to handle the housing duties of the authority and, in such an 
 43.21  event, the Scott county housing and redevelopment authority 
 43.22  shall act and have exclusive jurisdiction for housing in the 
 43.23  municipality pursuant to the provisions of the municipal housing 
 43.24  and redevelopment act, Minnesota Statutes, sections 462.411 to 
 43.25  462.711, and acts amendatory thereof 469.001 to 469.047.  A 
 43.26  transfer of duties relating to housing shall not transfer any 
 43.27  duties relating to redevelopment. 
 43.28     Sec. 3.  [MUNICIPAL APPROVAL.] 
 43.29     If any housing or redevelopment project is undertaken in 
 43.30  Scott county pursuant to this authorization, and such project is 
 43.31  within the boundaries of any incorporated village, city, or 
 43.32  township, the location of such project shall be approved by the 
 43.33  governing body of such village, city, or township. 
 43.34     Sec. 4.  [ECONOMIC DEVELOPMENT AUTHORITY POWERS.] 
 43.35     The Scott county housing and redevelopment authority may 
 43.36  exercise any of the powers of an economic development authority 
 44.1   (EDA) granted to it by resolution by the Scott county board of 
 44.2   commissioners, except for the authority to levy the tax 
 44.3   described in Minnesota Statutes, section 469.107.  With the 
 44.4   prior approval of the Scott county board, the authority may 
 44.5   increase its levy of the special tax described in Minnesota 
 44.6   Statutes, section 469.033, subdivision 6, to an amount not 
 44.7   exceeding 0.01813 percent of taxable market value, or any higher 
 44.8   limit from time to time authorized under Minnesota Statutes, 
 44.9   section 469.033, subdivision 6, or 469.107. 
 44.10     Sec. 4. Sec. 5.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
 44.11     This act takes effect when approved by a majority of the 
 44.12  board of county commissioners of Scott county and upon 
 44.13  compliance with Minnesota Statutes, Section 645.021 This act is 
 44.14  effective the day after the governing body of Scott county and 
 44.15  its chief clerical officer timely complete their compliance with 
 44.16  Minnesota Statutes, section 645.021, subdivisions 2 and 3. 
 44.17     Sec. 50.  Laws 1980, chapter 482, is amended to read: 
 44.18     Section 1.  [CARVER COUNTY; HOUSING AND REDEVELOPMENT.] 
 44.19  Subdivision 1.  There is created in the county of Carver a 
 44.20  public body corporate and politic, to be known as the Carver 
 44.21  county housing and redevelopment authority, having all of the 
 44.22  powers and duties of a housing and redevelopment authority under 
 44.23  the provisions of the municipal housing and redevelopment act, 
 44.24  Minnesota Statutes, Section 462.411 to 462.711 sections 469.001 
 44.25  to 469.047, and having those powers of an economic development 
 44.26  authority under the provisions of Minnesota Statutes, sections 
 44.27  469.090 to 469.180, as are granted to it by Carver county as 
 44.28  provided below.  For the purposes of applying the provisions 
 44.29  of the municipal housing and redevelopment act Minnesota 
 44.30  Statutes, sections 469.001 to 469.047 and 469.090 to 469.180, to 
 44.31  Carver county, the county has all of the powers and duties of a 
 44.32  municipality, the county board has all of the powers and duties 
 44.33  of a governing body, the chairman of the county board has all of 
 44.34  the powers and duties of a mayor, and the area of operation 
 44.35  includes the area within the territorial boundaries of the 
 44.36  county. 
 45.1      Subd. 2.  This section shall not limit or restrict any 
 45.2   existing housing and redevelopment authority or prevent a 
 45.3   municipality from creating an authority.  The county shall not 
 45.4   exercise jurisdiction in any municipality where a municipal 
 45.5   housing and redevelopment authority is established.  If a 
 45.6   municipal housing and redevelopment authority requests the 
 45.7   Carver county housing and redevelopment authority to handle the 
 45.8   housing duties of the municipal authority, the Carver county 
 45.9   housing and redevelopment authority shall act and have exclusive 
 45.10  jurisdiction for housing in the municipality.  A transfer of 
 45.11  duties relating to housing shall not transfer any duties 
 45.12  relating to redevelopment. 
 45.13     Sec. 2.  [EDA POWERS.] 
 45.14     The Carver county housing and redevelopment authority may 
 45.15  exercise any of the powers of an economic development authority 
 45.16  granted to it by resolution by the Carver county board of 
 45.17  commissioners, except for the authority to levy the tax 
 45.18  described in Minnesota Statutes, section 469.107.  With the 
 45.19  prior approval of the Carver county board, the authority may 
 45.20  increase its levy of the special tax described in Minnesota 
 45.21  Statutes, section 469.033, subdivision 6, to an amount not 
 45.22  exceeding 0.01813 percent of taxable market value, or any higher 
 45.23  limit from time to time authorized under Minnesota Statutes, 
 45.24  section 469.033, subdivision 6, or 469.107. 
 45.25     Sec. 3.  [LOCAL APPROVAL.] 
 45.26     Before a housing or redevelopment project of the Carver 
 45.27  county housing and redevelopment authority is undertaken, the 
 45.28  project shall be approved by the local governing body with 
 45.29  jurisdiction over all or any part of the area in which the 
 45.30  proposed project is located. 
 45.31     Sec. 3.  Sec. 4.  [EFFECTIVE DATE DATES; LOCAL APPROVAL.] 
 45.32     This act is effective upon the day of compliance with 
 45.33  Minnesota Statutes, Section 645.021, Subdivision 3.  This act is 
 45.34  effective the day after the governing body of Carver county and 
 45.35  its chief clerical officer timely complete their compliance with 
 45.36  Minnesota Statutes, section 645.021, subdivisions 2 and 3. 
 46.1      Sec. 51.  [CHISAGO LAKES JOINT SEWAGE TREATMENT COMMISSION 
 46.2   BONDING AUTHORITY.] 
 46.3      Subdivision 1.  [AUTHORITY.] Notwithstanding Minnesota 
 46.4   Statutes, section 471.59, subdivision 11, the Chisago lakes 
 46.5   joint sewage treatment commission, a joint powers board 
 46.6   established by the county of Chisago, and the cities of 
 46.7   Lindstrom, Chisago City, and Center City, to own and operate 
 46.8   wastewater treatment facilities for the member local 
 46.9   governments, may issue and sell general obligation bonds 
 46.10  pursuant to Minnesota Statutes, sections 115.46 and 444.075, and 
 46.11  chapter 475, to acquire land for, construct, expand, furnish, 
 46.12  equip, and modify its wastewater treatment facilities, and 
 46.13  pledge the full faith and credit and taxing power of the 
 46.14  governmental units that are members of the joint powers board.  
 46.15  Bonds issued under this section are not subject to Minnesota 
 46.16  Statutes, section 475.58.  The joint powers board is a 
 46.17  municipality within the meaning of Minnesota Statutes, chapter 
 46.18  475.  Each government unit that is a member of the joint powers 
 46.19  board must adopt a resolution authorizing the joint powers board 
 46.20  to issue and sell the bonds. 
 46.21     Subd. 2.  [EFFECTIVE DATE; NO LOCAL APPROVAL.] This section 
 46.22  is effective the day following final enactment and does not 
 46.23  require local approval, as provided in Minnesota Statutes, 
 46.24  section 645.023, subdivision 1, paragraph (a). 
 46.25     Sec. 52.  [HASSAN TOWNSHIP; ECONOMIC DEVELOPMENT AUTHORITY; 
 46.26  ESTABLISHMENT AND POWERS.] 
 46.27     Subdivision 1.  [ESTABLISHMENT.] The board of township 
 46.28  supervisors of Hassan township may establish an economic 
 46.29  development authority in the manner provided in Minnesota 
 46.30  Statutes, sections 469.090 to 469.1081, and may impose limits on 
 46.31  the authority enumerated in Minnesota Statutes, section 
 46.32  469.092.  The economic development authority has all of the 
 46.33  powers and duties granted to or imposed upon economic 
 46.34  development authorities under Minnesota Statutes, sections 
 46.35  469.090 to 469.1081.  The township economic development 
 46.36  authority may create and define the boundaries of economic 
 47.1   development districts at any place or places within the 
 47.2   township, provided that a project as recommended by the township 
 47.3   authority that is to be located within the corporate limits of a 
 47.4   city may not be commenced without the approval of the governing 
 47.5   body of the city.  Minnesota Statutes, section 469.174, 
 47.6   subdivision 10, and the contiguity requirement specified under 
 47.7   Minnesota Statutes, section 469.101, subdivision 1, do not apply 
 47.8   to limit the areas that may be designated as township economic 
 47.9   development districts. 
 47.10     Subd. 2.  [POWERS.] If an economic development authority is 
 47.11  established as provided in subdivision 1, the township may 
 47.12  exercise all of the powers relating to an economic development 
 47.13  authority granted to a city under Minnesota Statutes, sections 
 47.14  469.090 to 469.1081, or other law, including the power to levy a 
 47.15  tax to support the activities of the authority. 
 47.16     Subd. 3.  [LOCAL APPROVAL.] This section is effective the 
 47.17  day after the town board of supervisors of Hassan township and 
 47.18  its chief clerical officer timely complete their compliance with 
 47.19  Minnesota Statutes, section 645.021, subdivisions 2 and 3. 
 47.20     Sec. 53.  [REPEALER.] 
 47.21     Minnesota Statutes 2000, section 474A.061, subdivision 6, 
 47.22  is repealed. 
 47.23     Sec. 54.  [EFFECTIVE DATE.] 
 47.24     Sections 16 to 44 are effective the day after final 
 47.25  enactment except that section 22, paragraph (c), is effective to 
 47.26  require submissions by December 31, 2002, and annually 
 47.27  thereafter.  Hearings under section 48 may be held at any time 
 47.28  after the date of enactment.