1.1                          A bill for an act 
  1.2             relating to the city of Minneapolis; authorizing the 
  1.3             creation of a community planning and economic 
  1.4             development department of the city. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [MINNEAPOLIS COMMUNITY PLANNING AND ECONOMIC 
  1.7   DEVELOPMENT DEPARTMENT.] 
  1.8      Subdivision 1.  Notwithstanding a contrary provision of 
  1.9   law, the charter of the city of Minneapolis, or its civil 
  1.10  service rules, the city council of the city of Minneapolis may, 
  1.11  by ordinance: 
  1.12     (1) establish a department of the city to be designated as 
  1.13  the community planning and economic development department, or 
  1.14  another name as the city designates by ordinance.  The term "the 
  1.15  department" as used in sections 1 to 3 means the community 
  1.16  planning and economic development department established under 
  1.17  this subdivision; 
  1.18     (2) transfer to the department the community development 
  1.19  and planning duties and functions of any other department or 
  1.20  office of the city of Minneapolis, including the employees 
  1.21  performing those duties and functions.  If the duties and 
  1.22  functions of the city planning department are transferred to the 
  1.23  department, the department must perform the administrative 
  1.24  duties that were formerly performed by the city's planning 
  1.25  department on behalf of or at the request of the city's planning 
  2.1   commission; 
  2.2      (3) transfer any positions of the Minneapolis community 
  2.3   development agency to the city of Minneapolis.  The ordinance 
  2.4   may provide the process for establishing, classifying, and 
  2.5   describing the duties for the transferred positions.  Employees 
  2.6   of the Minneapolis community development agency who are not in 
  2.7   the classified service of the city of Minneapolis may be 
  2.8   transferred to the city of Minneapolis, and the city council may 
  2.9   transfer the employees into the classified service of the city 
  2.10  of Minneapolis and into positions for which the employees are 
  2.11  qualified, as determined by the city council; 
  2.12     (4) establish the position of director of the department in 
  2.13  the unclassified service of the city, and establish other 
  2.14  unclassified positions as necessary.  Unclassified positions, 
  2.15  other than the director, must meet the following criteria: 
  2.16     (i) the person occupying the position must report to the 
  2.17  director or a deputy director; 
  2.18     (ii) the person occupying the position must be part of the 
  2.19  director's management team; 
  2.20     (iii) the duties of the position must involve significant 
  2.21  discretion and substantial involvement in the development, 
  2.22  interpretation, or implementation of city or department policy; 
  2.23     (iv) the duties of the position must not primarily require 
  2.24  technical expertise where continuity in the position would be 
  2.25  significant; and 
  2.26     (v) the person occupying the position must be accountable 
  2.27  to, loyal to, and compatible with the mayor, the city council, 
  2.28  and the director; and 
  2.29     (5) establish the terms and conditions of employment for 
  2.30  employees of the department. 
  2.31     Subd. 2.  The employees of the department are employees of 
  2.32  the city of Minneapolis for the purposes of membership in the 
  2.33  public employees retirement association.  An employee 
  2.34  transferred from the Minneapolis community development agency to 
  2.35  the city of Minneapolis must elect within six months of the 
  2.36  effective date of the transfer to either continue as a member of 
  3.1   the retirement program in which the employee participated on the 
  3.2   date of the employee's transfer to the city of Minneapolis or to 
  3.3   become a member of the public employees retirement association.  
  3.4   This election is irrevocable.  An employee who was a member of 
  3.5   the Minneapolis employees retirement fund on the date of the 
  3.6   employee's transfer to the city of Minneapolis may continue as a 
  3.7   member of that fund retaining all vested rights, constructive 
  3.8   time, and employee and employer contributions made on the 
  3.9   employee's behalf to that fund. The city of Minneapolis must 
  3.10  make the required employer contributions to the elected 
  3.11  retirement program.  An employee electing to become a member of 
  3.12  the public employees retirement association may enroll in the 
  3.13  association with vested rights based upon the employee's current 
  3.14  tenure as an employee of the Minneapolis community development 
  3.15  agency, but that tenure does not constitute allowable service 
  3.16  for purposes of determining benefits. 
  3.17     Subd. 3.  The terms of a collective bargaining agreement 
  3.18  that is in effect between the Minneapolis community development 
  3.19  agency and its employees, some or all of whom may be transferred 
  3.20  to the city of Minneapolis, are binding upon the city of 
  3.21  Minneapolis and the employees for the term of the contract. 
  3.22     Subd. 4.  An employee electing under subdivision 2 to 
  3.23  become a member of the public employees retirement association 
  3.24  may purchase allowable service credit from the association by 
  3.25  paying to the association an amount calculated under Minnesota 
  3.26  Statutes, section 356.55.  The service credit that is 
  3.27  purchasable is a period or periods of employment by the 
  3.28  Minneapolis community development agency that would have been 
  3.29  eligible service for coverage by the general employees 
  3.30  retirement plan of the public employees retirement association 
  3.31  if the service had been rendered after the effective date of 
  3.32  this act.  A person electing to purchase service credit under 
  3.33  this subdivision must provide any documentation of prior service 
  3.34  required by the executive director of the public employees 
  3.35  retirement association.  Notwithstanding any provision of 
  3.36  Minnesota Statutes, section 356.55, to the contrary, the prior 
  4.1   service credit purchase payment may be made in whole or in part 
  4.2   on an institution-to-institution basis from a plan qualified 
  4.3   under the federal Internal Revenue Code, section 401(a), 401(k), 
  4.4   or 414(h), or from an annuity qualified under the federal 
  4.5   Internal Revenue Code, section 403, or from a deferred 
  4.6   compensation plan under the federal Internal Revenue Code, 
  4.7   section 457, to the extent permitted by federal law.  In no 
  4.8   event may a prior service credit purchase transfer be paid 
  4.9   directly to the person purchasing the service. 
  4.10     Sec. 2.  [AUTHORITY.] 
  4.11     Subdivision 1.  Notwithstanding a contrary law or provision 
  4.12  of the Minneapolis city charter, the city council may exercise 
  4.13  the powers granted by Minnesota Statutes, sections 469.001 to 
  4.14  469.134, and 469.152 to 469.1799, and any other powers granted 
  4.15  to a city of the first class, except for powers relating to 
  4.16  public housing.  In exercising the powers authorized by this 
  4.17  section, the city of Minneapolis shall be the authority, agency, 
  4.18  or redevelopment agency referred to in Minnesota Statutes, 
  4.19  sections 469.001 to 469.134, and 469.152 to 469.1799, and the 
  4.20  city council of the city of Minneapolis shall be the governing 
  4.21  body or board of commissioners of the authority, agency, or 
  4.22  redevelopment agency.  The city council may exercise the powers 
  4.23  authorized by this subdivision; by Laws 1980, chapter 595, as 
  4.24  amended; by Laws 1990, chapter 604, article 7, section 29, as 
  4.25  amended by Laws 1991, chapter 291, article 10, section 20; and 
  4.26  may exercise any other development or redevelopment powers 
  4.27  authorized by law, independently, or in conjunction with each 
  4.28  other, as though all of the authorized powers had been granted 
  4.29  to a single entity.  But a program, project, or district 
  4.30  authorized by the city under Minnesota Statutes, sections 
  4.31  469.001 to 469.134, and 469.152 to 469.l799, is subject to the 
  4.32  limitations of the program, project, or district imposed by 
  4.33  Minnesota Statutes, sections 469.001 to 469.134, and 469.152 to 
  4.34  469.1799. 
  4.35     Subd. 2.  The city council may delegate to the department 
  4.36  any of the powers granted to the city of Minneapolis under 
  5.1   subdivision 1, except the power to tax and the power to issue 
  5.2   bonds, notes, or other obligations of the city of Minneapolis. 
  5.3      Subd. 3.  Notwithstanding a contrary law or provision of 
  5.4   the Minneapolis city charter, money, investments, real property, 
  5.5   personal property, assets, programs, projects, districts, 
  5.6   developments, or obligations of the Minneapolis community 
  5.7   development agency may be transferred by resolution of the city 
  5.8   council to the city of Minneapolis and be made subject to the 
  5.9   control, authority, and operation of the department.  If a 
  5.10  transfer is made, the city of Minneapolis is bound by the 
  5.11  contractual obligations of the Minneapolis community development 
  5.12  agency with respect to the money, investments, real estate, 
  5.13  personal property, assets, programs, projects, districts, 
  5.14  developments, or obligations, including the obligations of any 
  5.15  bonds, notes, or other debt obligations of the Minneapolis 
  5.16  community development agency.  The pledge of the full faith and 
  5.17  credit of the Minneapolis community development agency to any 
  5.18  bonds, notes, or other debt obligations of the Minneapolis 
  5.19  community development agency that are transferred to the city of 
  5.20  Minneapolis shall not be secured by the full faith and credit of 
  5.21  the city of Minneapolis and shall not be secured by the taxing 
  5.22  powers of the city of Minneapolis but only by the assets pledged 
  5.23  by the Minneapolis community development agency to the payment 
  5.24  of the bonds, notes, or other debt obligations.  The city 
  5.25  council is granted the powers necessary to perform the 
  5.26  contractual obligations transferred to the city of Minneapolis. 
  5.27     Subd. 4.  The city council may pledge to the payment of 
  5.28  bonds, notes, or other obligations of the city of Minneapolis 
  5.29  revenues, assets, reserves, or other property transferred to the 
  5.30  city of Minneapolis under this section. 
  5.31     Subd. 5.  The city council may pledge to the payment of 
  5.32  bonds, notes, or other obligations of the city of Minneapolis 
  5.33  the full faith and credit of the city of Minneapolis, or the 
  5.34  taxing power of the city of Minneapolis, to finance programs, 
  5.35  projects, districts, developments, facilities, or activities 
  5.36  undertaken by the department. 
  6.1      Subd. 6.  Unless prohibited by other law or a contractual 
  6.2   obligation including a pledge to the owners of bonds, notes, or 
  6.3   other indebtedness, the money and investments of the Minneapolis 
  6.4   community development agency transferred to the city of 
  6.5   Minneapolis under this section may be deposited in any fund or 
  6.6   account of the city of Minneapolis. 
  6.7      Subd. 7.  If all money, investments, real property, 
  6.8   personal property, assets, programs, projects, districts, 
  6.9   developments, or obligations of the Minneapolis community 
  6.10  development agency are transferred to the city of Minneapolis, 
  6.11  the city council may, by resolution, dissolve the Minneapolis 
  6.12  community development agency.  Any rights, duties, claims, 
  6.13  awards, grants, or liabilities that may arise after the 
  6.14  dissolution of the Minneapolis community development agency 
  6.15  shall constitute rights, duties, claims, awards, grants, or 
  6.16  liabilities of the city of Minneapolis.  The pledge of the full 
  6.17  faith and credit of the Minneapolis community development agency 
  6.18  to any bonds, notes, or other debt obligations of the 
  6.19  Minneapolis community development agency that are transferred to 
  6.20  the city of Minneapolis shall not be secured by the full faith 
  6.21  and credit or the taxing powers of the city of Minneapolis but 
  6.22  shall be secured only by the assets pledged by the Minneapolis 
  6.23  community development agency to the payment of the bonds, notes, 
  6.24  or other debt obligations. 
  6.25     Subd. 8.  If the city of Minneapolis exercises its powers 
  6.26  for industrial development or establishes industrial development 
  6.27  districts under Minnesota Statutes, sections 469.048 to 469.068, 
  6.28  the term "industrial," when used in relation to industrial 
  6.29  development, includes economic and economic development and 
  6.30  housing and housing development. 
  6.31     Sec. 3.  [LIMITATIONS.] 
  6.32     Subdivision 1.  Bonds, notes, or other obligations issued 
  6.33  to finance or refinance a program, project, district, 
  6.34  development, facility, or activity of the department must be 
  6.35  issued by the city council, or, at the request of the city 
  6.36  council, by the board of estimate and taxation of the city of 
  7.1   Minneapolis.  The limitations of this section must not be 
  7.2   applied in a manner that impairs the security of bonds, notes, 
  7.3   or other obligations issued before the imposition of the 
  7.4   limitations. 
  7.5      Subd. 2.  Unless otherwise provided in sections 1 to 3, all 
  7.6   actions of the city council under sections 1 to 3 are actions 
  7.7   within chapter 3, section 1, of the charter of the city of 
  7.8   Minneapolis. 
  7.9      Sec. 4.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
  7.10     Sections 1 to 3 are effective the day after the governing 
  7.11  body of the city of Minneapolis and its chief clerical officer 
  7.12  timely complete their compliance with Minnesota Statutes, 
  7.13  section 645.021, subdivisions 2 and 3.