HF 2925
1st Committee Engrossment - 86th Legislature (2009 - 2010)
Posted on 03/19/2013 07:29 p.m.
KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers
1.1A bill for an act
1.2relating to Public Facilities Authority; amending certain programs; making
1.3technical changes;amending Minnesota Statutes 2008, sections 446A.03,
1.4subdivision 5; 446A.07, subdivision 8; 446A.072, subdivisions 1, 3, 5a, 9;
1.5446A.081, subdivision 9; 446A.086, subdivisions 1, 2, 11; Minnesota Statutes
1.62009 Supplement, sections 446A.075, subdivisions 1a, 2, 4, 5; 446A.081,
1.7subdivision 8.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2008, section 446A.03, subdivision 5, is amended to
1.10read:
1.11 Subd. 5. Executive director; staffing. new text begin (a) new text end The authority shall employ and the
1.12chair shall appoint, with the concurrence of the authority, an executive director in the
1.13unclassified service. The executive director shall be responsible for staff of the authority.
1.14new text begin (b) The executive director may employ a deputy director and chief financial officer.new text end
1.15new text begin (c) new text end The executive director shallnew text begin :new text end
1.16new text begin (1)new text end perform duties that the authority may require in carrying out its responsibilities
1.17to manage and implement the funds and programs in this chapter, implementation of
1.18debt issuance authorized by the authority, compliance with all state and federal program
1.19requirements, and state and federal securities and tax laws and regulations.new text begin ;new text end
1.20new text begin (2) employ officers, employees, and agents that the executive director considers new text end
1.21new text begin necessary to discharge the functions of the executive director; andnew text end
1.22new text begin (3) define the duties of officers, employees, and agents, and delegate to them any new text end
1.23new text begin of the powers, duties, and responsibilities, subject to the executive director's control and new text end
1.24new text begin under conditions prescribed by the executive director.new text end
2.1 Sec. 2. Minnesota Statutes 2008, section 446A.07, subdivision 8, is amended to read:
2.2 Subd. 8. Other uses of revolving fund. new text begin (a) new text end The clean water revolving fund may
2.3be used as provided in title VI of the Federal Water Pollution Control Act, including
2.4the following uses:
2.5(1) to buy or refinance the debt obligation of governmental units for treatment
2.6works where debt was incurred and construction begun after March 7, 1985, at or below
2.7market rates;
2.8(2) to guarantee or purchase insurance for local obligations to improve credit market
2.9access or reduce interest rates;
2.10(3) to provide a source of revenue or security for the payment of principal and
2.11interest on revenue or general obligation bonds issued by the authority if the bond
2.12proceeds are deposited in the fund;
2.13(4) to provide loan guarantees, loans, or set-aside for similar revolving funds
2.14established by a governmental unit other than state agencies, or state agencies under
2.15sections
17.117,
103F.725, subdivision 1a, and
116J.617;
2.16(5) to earn interest on fund accounts; and
2.17(6) to pay the reasonable costs incurred by the authority and the Pollution Control
2.18Agency of administering the fund and conducting activities required under the Federal
2.19Water Pollution Control Act, including water quality management planning under section
2.20205(j) of the act and water quality standards continuing planning under section 303(e)
2.21of the act.new text begin ;new text end
2.22new text begin (7) to provide principal forgiveness or grants to the extent permitted under the new text end
2.23new text begin Federal Water Pollution Control Act and other federal law, based on the criteria and new text end
2.24new text begin requirements established for the wastewater infrastructure funding program under section new text end
2.25new text begin 446A.072; andnew text end
2.26new text begin (8) to provide loans, principal forgiveness, or grants to the extent permitted under the new text end
2.27new text begin Federal Water Pollution Control Act and other federal law to address green infrastructure, new text end
2.28new text begin water or energy efficiency improvements, or other environmentally innovative activities.new text end
2.29new text begin (b) new text end Amounts spent under new text begin paragraph (a), new text end clause (6)new text begin ,new text end may not exceed the amount
2.30allowed under the Federal Water Pollution Control Act.
2.31new text begin (c) Principal forgiveness or grants provided under paragraph (a), clause (8), may new text end
2.32new text begin not exceed 25 percent of the eligible project costs as determined by the Pollution Control new text end
2.33new text begin Agency for project components directly related to green infrastructure, water or energy new text end
2.34new text begin efficiency improvements, or other environmentally innovative activities, up to a maximum new text end
2.35new text begin of $1,000,000.new text end
3.1 Sec. 3. Minnesota Statutes 2008, section 446A.072, subdivision 1, is amended to read:
3.2 Subdivision 1. Establishment of program. The authority will establish a
3.3wastewater infrastructure funding program to provide supplemental assistance to
3.4governmental units receiving funding through the clean water revolving fund program
3.5or the United States Department of Agriculture Rural Economic and Community
3.6Development's (USDA/RECD) Water and Waste Disposal Loans and Grants program for
3.7thenew text begin predesign,new text end design and planning, improvements to, and construction of municipal
3.8wastewater treatment systemsnew text begin , including purchase of land and easementsnew text end . The purpose
3.9of the program is to assist governmental units demonstrating financial need in building
3.10cost-efficient new text begin to build cost-effective new text end projects to address existing environmental or public
3.11health problems. To implement the program, the authority shall establish a wastewater
3.12infrastructure fund to provide grants and loans for the purposes authorized under title VI
3.13of the Federal Water Pollution Control Act. The fund shall be credited with all investment
3.14income from the fund and all repayments of loans, grants, and penalties.
3.15 Sec. 4. Minnesota Statutes 2008, section 446A.072, subdivision 3, is amended to read:
3.16 Subd. 3. Program administration. (a) The authority shall provide supplemental
3.17assistance, as provided in subdivision 5a to governmental units:
3.18 (1) whose projects are listed on the Pollution Control Agency's project priority list;
3.19 (2) that demonstrate their projects are a cost-effective solution to an existing
3.20environmental or public health problem; and
3.21 (3) whose projects are approved by the USDA/RECD or certified by the
3.22commissioner of the Pollution Control Agency.
3.23 (b) For a governmental unit receiving grant funding from the USDA/RECD,
3.24applications must be made to the USDA/RECD with additional information submitted to
3.25the authority as required by the authority. Eligible project costs and affordability criteria
3.26shall be determined by the USDA/RECD.
3.27 (c) For a governmental unit not receiving grant funding from the USDA/RECD,
3.28application must be made to the authority on forms prescribed by the authority for the
3.29clean water revolving fund program with additional information as required by the
3.30authority. In accordance with section
116.182, the Pollution Control Agency shall:
3.31 (1) calculate the essential project component percentage which must be multiplied
3.32by the total project cost to determine the eligible project cost; and
3.33 (2) review and certify approved projects to the authority.
3.34 (d) Each fiscal year the authority shall make funds available for projects based on
3.35their ranking on the Pollution Control Agency's project priority list. The authority shall
4.1reserve funds for a project when the applicant receives a funding commitment from the
4.2United States Department of Agriculture Rural Development (USDA/RECD) or submits
4.3plans and specifications to the Pollution Control Agency. Funds must be reserved in
4.4an amount based on the project cost estimate submitted to the authority prior to the
4.5appropriation of the funds and awarded in the amount reserved or an amount based on the
4.6as-bid costs, whichever is lessnew text begin based on the lesser of that amount or the as-bid costnew text end .
4.7 Sec. 5. Minnesota Statutes 2008, section 446A.072, subdivision 5a, is amended to read:
4.8 Subd. 5a. Type and amount of assistance. (a) For a governmental unit receiving
4.9grant funding from the USDA/RECD, the authority shallnew text begin is authorized tonew text end provide
4.10assistance in the form of a grant of up to 65 percent of the eligible grant need determined
4.11by USDA/RECD. A governmental unit may not receive a grant under this paragraph
4.12for more than $4,000,000 new text begin per project new text end or $15,000 per existing connection, whichever
4.13is less, unless specifically approved by law. In the case of a sanitary district or other
4.14multijurisdictional project for which the USDA/RECD is unable to fully fund its share of
4.15the eligible grant need, the authority may provide up to an additional $1,000,000 for each
4.16additional governmental unit participating up to a maximum of $8,000,000 or $15,000
4.17per existing connection, whichever is less, but not to exceed the maximum grant level
4.18determined by the USDA/RECD as needed to keep the project affordable.
4.19 (b) For a governmental unit not receiving grant funding from the USDA/RECDnew text begin new text end
4.20new text begin receiving a loan from the clean water revolving fund under section 446A.07new text end , the authority
4.21shallnew text begin is authorized tonew text end provide assistance new text begin under this section new text end in the form of a loan for the
4.22eligible project costs plus the outstanding balance on any existing wastewater system debt
4.23that together exceed five percent of the market value of properties in the project service
4.24area, less the amount of any other grant funding received by the governmental unit for
4.25the project. A governmental unit may not receive a loan under this paragraph for more
4.26than new text begin grant if the average annual residential wastewater system cost after completion of the new text end
4.27new text begin project would otherwise exceed 1.4 percent of the median household income of the project new text end
4.28new text begin service area. In determining whether the average annual residential wastewater system new text end
4.29new text begin cost would exceed 1.4 percent, the authority must consider the total costs associated with new text end
4.30new text begin building, operating, and maintaining the wastewater system, including existing wastewater new text end
4.31new text begin debt service, debt service on the eligible project cost, and operation and maintenance new text end
4.32new text begin costs. Debt service costs for the proposed project are calculated based on the maximum new text end
4.33new text begin loan term permitted for the clean water revolving fund loan under section 446A.07, new text end
4.34new text begin subdivision 7. The amount of the grant is equal to 80 percent of the amount needed to new text end
4.35new text begin reduce the average annual residential wastewater system cost to 1.4 percent of median new text end
5.1new text begin household income in the project service area, to a maximum of new text end $4,000,000 new text begin per project new text end or
5.2$15,000 per existing connection, whichever is less, unless specifically approved by law.
5.3In the case of a sanitary district or other multijurisdictional project, the authority may
5.4provide a loan under this paragraph for up to an additional $1,000,000 for each additional
5.5municipality participating up to a maximum of $8,000,000 or $15,000 per existing
5.6connection, whichever is less, unless specifically approved by law. A loan under this
5.7paragraph must bear no interest, must be repaid as provided in subdivision 7, and must
5.8only be provided in conjunction with a loan from the clean water revolving fund under
5.9section
.new text begin The eligible project cost is determined by multiplying the total project new text end
5.10new text begin costs minus any other grants by the essential project component percentage calculated new text end
5.11new text begin under subdivision 3, paragraph (c), clause (1). In no case may the amount of the grant new text end
5.12new text begin exceed 80 percent of the eligible project cost.new text end
5.13 (c) Notwithstanding the limits in paragraphs (a) and (b), for a governmental
5.14unit receiving supplemental assistance under this section after January 1, 2002, if the
5.15authority determines that the governmental unit's construction and installation costs are
5.16significantly increased due to geological conditions of crystalline bedrock or karst areas
5.17and discharge limits that are more stringent than secondary treatment, the authority shall
5.18provide assistance in the form of half grant and half loan. Assistance from the authority
5.19may new text begin maximum award under this section shall new text end not be more than $25,000 per existing
5.20connection. Any additional grant amount received for the same project must be used to
5.21reduce the amount of the governmental unit's loan from the clean water revolving fund
5.22that exceeds five percent of the market value of properties in the project service area.
5.23 Sec. 6. Minnesota Statutes 2008, section 446A.072, subdivision 9, is amended to read:
5.24 Subd. 9. Loan new text begin Funding new text end limitation. Supplemental assistance may not be used to
5.25reduce the sewer service charges of a significant wastewater contributor, or a single user
5.26that has caused the need for the project or whose current or projected flow and load exceed
5.27one-half of the current wastewater treatment plant's capacity.
5.28 Sec. 7. Minnesota Statutes 2009 Supplement, section 446A.075, subdivision 1a,
5.29is amended to read:
5.30 Subd. 1a. Technical assistance grants. If requested, and if it is an eligible use
5.31of funds, the authority shallnew text begin is authorized tonew text end provide technical assistance grants to
5.32governmental units as provided in this section to analyze possible solutions to problems
5.33from new text begin seeking to address new text end noncomplying subsurface sewage treatment systems. A grant
5.34under this subdivision shall equalnew text begin must not exceednew text end $10,000 plus $500 per household,
6.1not to exceed anew text begin for a maximumnew text end total of $40,000. Technical assistance grant funds may be
6.2used new text begin by the governmental unit new text end to:new text begin contract with a licensed subsurface sewage treatment new text end
6.3new text begin system business, the University of Minnesota onsite sewage treatment program, a regional new text end
6.4new text begin development commission, or other qualified nonprofit organization for one or more of the new text end
6.5new text begin following services:new text end
6.6(1) contract with a licensed subsurface sewage treatment system professional for
6.7a preliminary analysis of new text begin conduct site evaluations and prepare a report by a certified new text end
6.8new text begin subsurface sewage treatment system designer indicating new text end the feasibility of installing new
6.9new text begin subsurface sewage treatment new text end systems meeting the requirements of section
115.55; and
6.10(2) to contract for services from the University of Minnesota Extension Service to
6.11advise the governmental unit new text begin provide independent advice new text end on the feasibility of possible
6.12wastewater new text begin subsurface sewage new text end treatment new text begin system new text end alternatives and helpnew text begin ; andnew text end
6.13new text begin (3) assistnew text end the governmental unit new text begin to new text end develop the technical, managerial, and financial
6.14capacity necessary to build, operate, and maintain individual wastewater new text begin subsurface new text end
6.15new text begin sewage new text end treatment systems.
6.16 Sec. 8. Minnesota Statutes 2009 Supplement, section 446A.075, subdivision 2, is
6.17amended to read:
6.18 Subd. 2. Construction loans and grants. (a) The authority shallnew text begin is authorized tonew text end
6.19award loans and grants as provided in this subdivision to governmental units from the
6.20small community wastewater treatment account for projects to replace noncomplying
6.21subsurface sewage treatment systems with a subsurface sewage treatment system or
6.22systems meeting the requirements of section
115.55. A governmental unit receiving a
6.23loan or grant from the account shall own the individual wastewater new text begin subsurface sewage new text end
6.24treatment systems built under the program and shall be responsible, either directly or
6.25through a contract with a private vendor, for all inspections, maintenance, and repairs
6.26necessary to ensure proper operation of the systems.
6.27 (b) Loans may be awarded for up to 100 percent of eligible project costs as described
6.28in this section.
6.29 (c) When the area to be served by a project has a median household income below
6.30the state average median household income, the governmental unit may receive 50 percent
6.31of the funding provided under this subdivision in the form of a grant. An applicant may
6.32submit income survey data collected by an independent party if it believes the most recent
6.33United States census does not accurately reflect the median household income of the
6.34area to be served.
7.1 Sec. 9. Minnesota Statutes 2009 Supplement, section 446A.075, subdivision 4, is
7.2amended to read:
7.3 Subd. 4. Applications. Governmental units with projects on the project priority
7.4list shall submit applications for loans or grants under this program to the authority on
7.5forms prescribed by the authority. An application for technical assistance funds shall
7.6include the number of households served by subsurface sewage treatment systems in the
7.7community andnew text begin a workplan and schedule fornew text end the proposed use of funds. An application for
7.8construction funds shall include:
7.9 (1) a list of the subsurface sewage treatment systems proposed to be replaced over a
7.10period of up to three years;
7.11 (2) a project schedule and cost estimate for each year of the project;
7.12 (3) a financing plan for repayment of the loan; and
7.13 (4) a management plan providing for the inspection, maintenance, and repairs
7.14necessary to ensure proper operation of the systems.
7.15 Sec. 10. Minnesota Statutes 2009 Supplement, section 446A.075, subdivision 5,
7.16is amended to read:
7.17 Subd. 5. Awards. new text begin (a) new text end The authority shallnew text begin mustnew text end award loans and grants as provided
7.18in this section to governmental units with approved applications based on their ranking on
7.19the Pollution Control Agency's project priority list.
7.20new text begin (b) Except as provided in paragraph (c),new text end prior to the award of construction loans or
7.21grants under subdivision 2, paragraph (b), the Pollution Control Agency shall certify that
7.22the subsurface sewage treatment systems to be built appear to meet the criteria set forth in
7.23section
115.55 and rules of the Pollution Control Agency.
7.24new text begin (c) If a governmental unit receives preliminary approval by the Pollution Control new text end
7.25new text begin Agency of its feasibility report prepared under subdivision 1a, clause (1), the authority new text end
7.26new text begin may make a partial construction award for eligible design costs.new text end
7.27new text begin (d)new text end The total amount awarded for construction loans and grants under subdivision 2,
7.28paragraph (b), shall be based on the estimated project costs for the portion of the project
7.29expected to be completed within one year, up to an annual maximum of $500,000. For
7.30projects expected to take more than one year to complete, the authority may make a
7.31multiyear commitment for a period not to exceed three years, contingent on the future
7.32availability of funds. Each year of a multiyear commitment must be funded by a separate
7.33loan or loan and grant agreement meeting the terms and conditions in subdivision 6. A
7.34governmental unit receiving a loan or loan and grant under a multiyear commitment shall
7.35have priority for additional loan and grant funds in subsequent years.
8.1 Sec. 11. Minnesota Statutes 2009 Supplement, section 446A.081, subdivision 8,
8.2is amended to read:
8.3 Subd. 8. Loan conditions. (a) When making loans from the drinking water
8.4revolving fund, the authority shall comply with the conditions of the federal Safe Drinking
8.5Water Act, including the criteria in this subdivision.
8.6(b) Loans must be made at or below market interest rates, including zero interest
8.7loans, for terms not to exceed those allowed under the federal Safe Drinking Water Act.
8.8(c) The annual principal and interest payments must begin no later than one year
8.9after completion of the project. Loans must be amortized no later than 20 years after
8.10project completion, unless the recipient's average annual residential drinking water system
8.11cost after completion of the project would exceed 1.4new text begin 1.2new text end percent of median household
8.12income in the recipient governmental unit or entity, in which case the loan must be fully
8.13amortized no later than 30 years after project completion.
8.14(d) A loan recipient must identify and establish a dedicated source of revenue for
8.15repayment of the loan, and provide for a source of revenue to properly operate, maintain,
8.16and repair the water system.
8.17(e) The fund must be credited with all payments of principal and interest on all loans,
8.18except the costs as permitted under section
446A.04, subdivision 5, paragraph (a).
8.19(f) A loan may not be used to pay operating expenses or current obligations, unless
8.20specifically allowed by the federal Safe Drinking Water Act.
8.21(g) A loan made by the authority must be secured by notes or bonds of the
8.22governmental unit and collateral to be determined by the authority for private borrowers.
8.23 Sec. 12. Minnesota Statutes 2008, section 446A.081, subdivision 9, is amended to read:
8.24 Subd. 9. Other uses of fund. new text begin (a) new text end The drinking water revolving loan fund may be
8.25used as provided in the act, including the following uses:
8.26(1) to buy or refinance the debt obligations, at or below market rates, of public
8.27water systems for drinking water systems, where the debt was incurred after the date of
8.28enactment of the act, for the purposes of construction of the necessary improvements
8.29to comply with the national primary drinking water regulations under the federal Safe
8.30Drinking Water Act;
8.31(2) to purchase or guarantee insurance for local obligations to improve credit market
8.32access or reduce interest rates;
8.33(3) to provide a source of revenue or security for the payment of principal and
8.34interest on revenue or general obligation bonds issued by the authority if the bond
8.35proceeds are deposited in the fund;
9.1(4) to provide loans or loan guarantees for similar revolving funds established by a
9.2governmental unit or state agency;
9.3(5) to earn interest on fund accounts;
9.4(6) to pay the reasonable costs incurred by the authority, the Department of
9.5Employment and Economic Development, and the Department of Health for conducting
9.6activities as authorized and required under the act up to the limits authorized under the
9.7act; and
9.8(7) to develop and administer programs for water system supervision, source water
9.9protection, and related programs required under the act.new text begin ;new text end
9.10new text begin (8) notwithstanding Minnesota Rules, part 7380.0280, to provide principal new text end
9.11new text begin forgiveness or grants to the extent permitted under the federal Safe Drinking Water Act new text end
9.12new text begin and other federal law;new text end
9.13new text begin (9) to provide loans, principal forgiveness or grants to the extent permitted under the new text end
9.14new text begin Federal Safe Drinking Water Act and other federal law to address green infrastructure, new text end
9.15new text begin water or energy efficiency improvements, or other environmentally innovative activities; new text end
9.16new text begin andnew text end
9.17new text begin (10) to provide principal forgiveness or grants for 50 percent of the project cost up new text end
9.18new text begin to a maximum of $10,000 for projects needed to comply with national primary drinking new text end
9.19new text begin water standards for an existing community or noncommunity public water system.new text end
9.20new text begin (b) Principal forgiveness or grants under paragraph (a), clause (8), must only be new text end
9.21new text begin provided if the average annual residential drinking water system cost after completion of new text end
9.22new text begin the project would otherwise exceed 1.2 percent of the median household income in the new text end
9.23new text begin project service area. In determining whether the average annual residential drinking new text end
9.24new text begin water system cost would exceed 1.2 percent, the authority must consider the total costs new text end
9.25new text begin associated with building, operating, and maintaining the drinking water system, including new text end
9.26new text begin debt service and operation and maintenance costs. Debt service costs for the proposed new text end
9.27new text begin project must be calculated based on the maximum loan term permitted for the drinking new text end
9.28new text begin water revolving fund loan under this section. The amount of the principal forgiveness or new text end
9.29new text begin grant must be equal to 80 percent of the amount needed to reduce the average annual new text end
9.30new text begin residential drinking water system cost to 1.2 percent of median household income in the new text end
9.31new text begin project service area, to a maximum of $4,000,000 or $15,000 per connection, whichever is new text end
9.32new text begin less, and not to exceed 80 percent of the total project cost.new text end
9.33new text begin (c) Principal forgiveness or grants provided under paragraph (a), clause (9), may new text end
9.34new text begin not exceed 25 percent of the eligible project costs as determined by the Department of new text end
9.35new text begin Health for project components directly related to green infrastructure, water or energy new text end
10.1new text begin efficiency improvements, or other environmentally innovative activities, up to a maximum new text end
10.2new text begin of $1,000,000.new text end
10.3new text begin (d) The authority is authorized to reduce the percentage of median household new text end
10.4new text begin income at which a loan term could extend to 30 years under subdivision 8, paragraph (c), new text end
10.5new text begin and at which principal forgiveness or grants could be provided under paragraph (b) if it new text end
10.6new text begin determines that the federal funds allotted to the state cannot be fully utilized without new text end
10.7new text begin such a reduction. If it determines that such a reduction is necessary to fully utilize the new text end
10.8new text begin federal funds, the authority must effect the change through its approval of the annual new text end
10.9new text begin intended use plan.new text end
10.10 Sec. 13. Minnesota Statutes 2008, section 446A.086, subdivision 1, is amended to read:
10.11 Subdivision 1. Definitions. (a) As used in this section, the following terms have
10.12the meanings given.
10.13 (b) "Authority" means the Minnesota Public Facilities Authority.
10.14 (c) "Commissioner" means the commissioner of management and budget.
10.15 (d) "Debt obligation" means:
10.16 (1) a general obligation bond new text begin or note new text end issued by a county, a bond new text begin or note new text end to which the
10.17general obligation of a county is pledged under section
469.034, subdivision 2, or a bond
10.18new text begin or note new text end payable from a county lease obligation under section
641.24, to provide funds
10.19for the construction of:
10.20 (i) jails;
10.21 (ii) correctional facilities;
10.22 (iii) law enforcement facilities;
10.23 (iv) social services and human services facilities;
10.24 (v) solid waste facilities; or
10.25 (vi) qualified housing development projects as defined in section
469.034,
10.26subdivision 2; or
10.27 (2) a general obligation bond new text begin or note new text end issued by a governmental unit to provide funds
10.28for the construction, improvement, or rehabilitation of:
10.29 (i) wastewater facilities;
10.30 (ii) drinking water facilities;
10.31 (iii) stormwater facilities; or
10.32 (iv) any publicly owned building or infrastructure improvement that has received
10.33partial funding from grants awarded by the commissioner of employment and economic
10.34development related to redevelopment, contaminated site cleanup, bioscience, small cities
11.1development programs, and rural business infrastructure programs, for which bonds are
11.2issued by the authority under section
446A.087.
11.3 (e) "Governmental unit" means a county or a statutory or home rule charter city.
11.4 Sec. 14. Minnesota Statutes 2008, section 446A.086, subdivision 2, is amended to read:
11.5 Subd. 2. Application. (a) This section provides a state guarantee of the payment of
11.6principal and interest on debt obligations if:
11.7 (1) the obligations are issued after June 30, 2000new text begin for new projects and are not issued new text end
11.8new text begin for the purposes of refunding previous obligationsnew text end ;
11.9 (2) application to the Public Facilities Authority is made before issuance; and
11.10 (3) the obligations are covered by an agreement meeting the requirements of
11.11subdivision 3.
11.12 (b) Applications to be covered by the provisions of this section must be made in a
11.13form and contain the information prescribed by the authority. Applications are subject to
11.14either a fee of $500 for each bond issue requested by a county or governmental unit or the
11.15applicable fees under section
446A.087.
11.16 (c) Application fees paid under this section must be deposited in a separate
11.17credit enhancement bond guarantee account in the general fund. Money in the credit
11.18enhancement bond guarantee account is appropriated to the authority for purposes of
11.19administering this section.
11.20 (d) Neither the authority nor the commissioner is required to promulgate
11.21administrative rules under this section and the procedures and requirements established by
11.22the authority or commissioner under this section are not subject to chapter 14.
11.23 Sec. 15. Minnesota Statutes 2008, section 446A.086, subdivision 11, is amended to
11.24read:
11.25 Subd. 11. Amount of debt obligation authorized. The amount of debt outstanding
11.26under this section must not exceed $500,000,000new text begin $1,000,000,000new text end .
11.27 Sec. 16. new text begin EMPLOYEE TRANSFER.new text end
11.28new text begin Employees employed by the Department of Employment and Economic new text end
11.29new text begin Development and assigned to the Public Facilities Authority are transferred to the Public new text end
11.30new text begin Facilities Authority in accordance with Minnesota Statutes, section 15.039, subdivision 7. new text end
11.31new text begin No employee in the classified service shall suffer job loss, have a salary reduced, or have new text end
11.32new text begin employment benefits reduced as a result of the transfer under this section. No action taken new text end
11.33new text begin after June 1, 2011, shall be considered a result of the transfer under this section.new text end
12.1 Sec. 17. new text begin EFFECTIVE DATE.new text end
12.2new text begin Sections 1 to 16 are effective the day following final enactment.new text end