HF 3232

1st Committee Engrossment - 85th Legislature (2007 - 2008)

Posted on 12/22/2009 12:38 p.m.

1.1A bill for an act 1.2relating to environment; authorizing revenue bonds to be sold for closed landfill 1.3cleanup; directing the Pollution Control Agency to provide cleanup of certain 1.4closed landfill sites; appropriating money;amending Minnesota Statutes 2006, 1.5section 116.155, subdivisions 2, 3; proposing coding for new law in Minnesota 1.6Statutes, chapter 116. 1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8    Section 1. Minnesota Statutes 2006, section 116.155, subdivision 2, is amended to read: 1.9    Subd. 2. Appropriation. (a) Money in the general portion of the remediation fund 1.10is appropriated to the agency and the commissioners of agriculture and natural resources 1.11for the following purposes: 1.12    (1) to take actions related to releases of hazardous substances, or pollutants or 1.13contaminants as provided in section 115B.20; 1.14    (2) to take actions related to releases of hazardous substances, or pollutants or 1.15contaminants, at and from qualified landfill facilities as provided in section 115B.42, 1.16subdivision 2 ; 1.17    (3) to provide technical and other assistance under sections 115B.17, subdivision 1.1814 , 115B.175 to 115B.179, and 115C.03, subdivision 9; 1.19    (4) for corrective actions to address incidents involving agricultural chemicals, 1.20including related administrative, enforcement, and cost recovery actions pursuant to 1.21chapter 18D; and 1.22    (5) new text begin to make debt service payments on revenue bonds issued under section 116.156; new text end 1.23 new text begin and new text end 2.1     new text begin (6) new text end together with any amount approved for transfer to the agency from the petroleum 2.2tank fund by the commissioner of finance, to take actions related to releases of petroleum 2.3as provided under section 115C.08. 2.4    (b) The commissioner of finance shall allocate the amounts available in any 2.5biennium to the agency, and the commissioners of agriculture and natural resources for the 2.6purposes provided in this subdivision based upon work plans submitted by the agency and 2.7the commissioners of agriculture and natural resources, and may adjust those allocations 2.8upon submittal of revised work plans. Copies of the work plans shall be submitted 2.9to the chairs of the senate and house committees having jurisdiction over environment 2.10and environment finance. 2.11     new text begin (c) Priority for appropriations from the general portion of the remediation fund shall new text end 2.12 new text begin be given to debt service payments under paragraph (a), clause (5). new text end 2.13    Sec. 2. Minnesota Statutes 2006, section 116.155, subdivision 3, is amended to read: 2.14    Subd. 3. Revenues. The following revenues shall be deposited in the general 2.15portion of the remediation fund: 2.16    (1) response costs and natural resource damages related to releases of hazardous 2.17substances, or pollutants or contaminants, recovered under sections 115B.17, subdivisions 2.186 and 7 , 115B.443, 115B.444, or any other law; 2.19    (2) money paid to the agency or the Agriculture Department by voluntary parties 2.20who have received technical or other assistance under sections 115B.17, subdivision 14, 2.21115B.175 to 115B.179, and 115C.03, subdivision 9; 2.22    (3) money received in the form of gifts, grants, reimbursement, or appropriation from 2.23any source for any of the purposes provided in subdivision 2, except federal grants; and 2.24    (4) new text begin money received from revenue bonds sold under section 116.156 and placed new text end 2.25 new text begin in a special bond proceeds account; and new text end 2.26     new text begin (5) new text end interest accrued on the fund. 2.27    Sec. 3. new text begin [116.156] CLOSED LANDFILL CLEANUP REVENUE BONDS. new text end 2.28     new text begin Subdivision 1. new text end new text begin Bonding authority. new text end new text begin (a) The commissioner of finance, if requested new text end 2.29 new text begin by the commissioner of the Pollution Control Agency, shall sell and issue state revenue new text end 2.30 new text begin bonds for the following purposes: new text end 2.31     new text begin (1) to take actions related to hazardous substances, pollutants, or contaminants at new text end 2.32 new text begin and from qualified landfill facilities as provided in section 115B.42, subdivision 2; new text end 2.33     new text begin (2) to pay the costs of issuance, debt service, and bond insurance or other credit new text end 2.34 new text begin enhancements and to fund reserves; and new text end 3.1     new text begin (3) to refund bonds issued under this section. new text end 3.2     new text begin (b) The amount of bonds that may be issued for the purposes of paragraph (a), new text end 3.3 new text begin clause (1), may not exceed $25,000,000. The amount of bonds that may be issued for the new text end 3.4 new text begin purposes of paragraph (a), clauses (2) and (3), is not limited. new text end 3.5     new text begin Subd. 2. new text end new text begin Procedure. new text end new text begin The commissioner of finance may sell and issue the bonds new text end 3.6 new text begin on the terms and conditions the commissioner of finance determines to be in the best new text end 3.7 new text begin interests of the state. The bonds may be sold at public or private sale. The commissioner new text end 3.8 new text begin of finance may enter any agreements or pledges the commissioner of finance determines new text end 3.9 new text begin necessary or useful to sell the bonds that are not inconsistent with this section. Sections new text end 3.10 new text begin 16A.672 to 16A.675 apply to the bonds. The proceeds of the bonds issued under this new text end 3.11 new text begin section must be credited to a special bond proceeds account in the remediation fund and new text end 3.12 new text begin are appropriated to the commissioner of the Pollution Control Agency for the purposes new text end 3.13 new text begin specified in subdivision 1. new text end 3.14     new text begin Subd. 3. new text end new text begin Revenue sources. new text end new text begin The debt service on the bonds is payable only from the new text end 3.15 new text begin following sources: new text end 3.16     new text begin (1) the remediation fund; and new text end 3.17     new text begin (2) other revenues pledged to the payment of the bonds. new text end 3.18     new text begin Subd. 4. new text end new text begin Refunding bonds. new text end new text begin The commissioner of finance may issue bonds to refund new text end 3.19 new text begin outstanding bonds issued under subdivision 1, including the payment of any redemption new text end 3.20 new text begin premiums on the bonds and any interest accrued or to accrue to the first redemption date new text end 3.21 new text begin after delivery of the refunding bonds. The proceeds of the refunding bonds may, in the new text end 3.22 new text begin discretion of the commissioner of finance, be applied to the purchases or payment at new text end 3.23 new text begin maturity of the bonds to be refunded, or the redemption of the outstanding bonds on the new text end 3.24 new text begin first redemption date after delivery of the refunding bonds and may, until so used, be new text end 3.25 new text begin placed in escrow to be applied to the purchase, retirement, or redemption. Refunding new text end 3.26 new text begin bonds issued under this subdivision must be issued and secured in the manner provided new text end 3.27 new text begin by the commissioner of finance. new text end 3.28     new text begin Subd. 5. new text end new text begin Not a general or moral obligation. new text end new text begin Bonds issued under this section are new text end 3.29 new text begin not public debt, and the full faith, credit, and taxing powers of the state are not pledged new text end 3.30 new text begin for their payment. The bonds may not be paid, directly in whole or in part from a tax of new text end 3.31 new text begin statewide application on any class of property, income, transaction, or privilege. Payment new text end 3.32 new text begin of the bonds is limited to the revenues explicitly authorized to be pledged under this new text end 3.33 new text begin section. The state neither makes nor has a moral obligation to pay the bonds if the pledged new text end 3.34 new text begin revenues and other legal security for them is insufficient. new text end 4.1     new text begin Subd. 6. new text end new text begin Trustee. new text end new text begin The commissioner of finance may contract with and appoint a new text end 4.2 new text begin trustee for bondholders. The trustee has the powers and authority vested in it by the new text end 4.3 new text begin commissioner of finance under the bond and trust indentures. new text end 4.4     new text begin Subd. 7. new text end new text begin Pledges. new text end new text begin Any pledge made by the commissioner of finance is valid and new text end 4.5 new text begin binding from the time the pledge is made. The money or property pledged and later new text end 4.6 new text begin received by the commissioner of finance is immediately subject to the lien of the pledge new text end 4.7 new text begin without any physical delivery of the property or money or further act, and the lien of new text end 4.8 new text begin any pledge is valid and binding as against all parties having claims of any kind in tort, new text end 4.9 new text begin contract, or otherwise against the commissioner of finance, whether or not those parties new text end 4.10 new text begin have notice of the lien or pledge. Neither the order nor any other instrument by which a new text end 4.11 new text begin pledge is created need be recorded. new text end 4.12     new text begin Subd. 8. new text end new text begin Bonds; purchase and cancellation. new text end new text begin The commissioner of finance, subject new text end 4.13 new text begin to agreements with bondholders that may then exist, may, out of any money available for new text end 4.14 new text begin the purpose, purchase bonds of the commissioner of finance at a price not exceeding new text end 4.15 new text begin (1) if the bonds are then redeemable, the redemption price then applicable plus accrued new text end 4.16 new text begin interest to the next interest payment date thereon, or (2) if the bonds are not redeemable, new text end 4.17 new text begin the redemption price applicable on the first date after the purchase upon which the bonds new text end 4.18 new text begin become subject to redemption plus accrued interest to that date. new text end 4.19     new text begin Subd. 9. new text end new text begin State pledge against impairment of contracts. new text end new text begin The state pledges and new text end 4.20 new text begin agrees with the holders of any bonds that the state will not limit or alter the rights vested new text end 4.21 new text begin in the commissioner of finance to fulfill the terms of any agreements made with the new text end 4.22 new text begin bondholders, or in any way impair the rights and remedies of the holders until the bonds, new text end 4.23 new text begin together with interest on them, with interest on any unpaid installments of interest, and all new text end 4.24 new text begin costs and expenses in connection with any action or proceeding by or on behalf of the new text end 4.25 new text begin bondholders, are fully met and discharged. The commissioner of finance may include this new text end 4.26 new text begin pledge and agreement of the state in any agreement with the holders of bonds issued new text end 4.27 new text begin under this section. new text end 4.28    Sec. 4. new text begin USE OF REVENUE BONDS FOR CLEANUP AT CERTAIN CLOSED new text end 4.29 new text begin LANDFILL SITES; REPORT REQUIRED. new text end 4.30     new text begin (a) The commissioner of the Pollution Control Agency shall recommend to the new text end 4.31 new text begin commissioner of finance the sale of bonds under Minnesota Statutes, section 116.156, new text end 4.32 new text begin to take action at qualified closed landfill facilities in Mille Lacs, Washington County, new text end 4.33 new text begin the Western Lake Superior Sanitary District, and Albert Lea. The commissioner of the new text end 4.34 new text begin Pollution Control Agency may make additional requests for revenue bonds at other sites new text end 4.35 new text begin under Minnesota Statutes, section 116.156. new text end 5.1     new text begin (b) By January 15, 2009, the commissioner of the Pollution Control Agency shall new text end 5.2 new text begin report to the house and senate Finance Committees and Divisions with jurisdiction over new text end 5.3 new text begin the environment on funding needs of the remediation fund to provide timely cleanup new text end 5.4 new text begin of closed landfills in the state. The report shall make recommendations for additional new text end 5.5 new text begin funding sources to address those needs. new text end