HF 3359

1st Committee Engrossment - 86th Legislature (2009 - 2010)

Posted on 03/19/2013 07:29 p.m.

1.1A bill for an act 1.2relating to local government; authorizing Hennepin County to purchase energy 1.3under forward pricing mechanisms;proposing coding for new law in Minnesota 1.4Statutes, chapter 383B. 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6    Section 1. new text begin [383B.1588] ENERGY FORWARD PRICING MECHANISMS. new text end 1.7     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin The following definitions apply in this section. new text end 1.8 new text begin (a) "Energy" means natural gas, heating oil, diesel fuel, unleaded fuel, or any other new text end 1.9 new text begin energy source, except electric, used in Hennepin County operations. new text end 1.10 new text begin (b) "Forward pricing mechanism" means either: new text end 1.11 new text begin (1) a contract or financial instrument that obligates Hennepin County to buy or sell a new text end 1.12 new text begin specified amount of an energy commodity at a future date and at a set price; or new text end 1.13 new text begin (2) an option to buy or sell the contract or financial instrument. new text end 1.14     new text begin Subd. 2. new text end new text begin Authority provided. new text end new text begin Notwithstanding any other law to the contrary, new text end 1.15 new text begin the Hennepin County Board of Commissioners may use forward pricing mechanisms new text end 1.16 new text begin for budget risk reduction. new text end 1.17     new text begin Subd. 3. new text end new text begin Conditions. new text end new text begin (a) Forward pricing transactions made under this section must new text end 1.18 new text begin be made only under the conditions in this subdivision. new text end 1.19 new text begin (b) The amount of energy forward priced must not exceed the estimated energy new text end 1.20 new text begin usage for Hennepin County operations for the period of time covered by the forward new text end 1.21 new text begin pricing mechanism. new text end 1.22 new text begin (c) The holding period and expiration date for any forward pricing mechanism must new text end 1.23 new text begin not exceed 24 months from the trade date of the transaction. new text end 2.1 new text begin (d) Separate accounts must be established for each operational energy for which new text end 2.2 new text begin forward pricing mechanisms are used under this section. new text end 2.3     new text begin Subd. 4. new text end new text begin Written policies and procedures. new text end new text begin Before exercising authority under new text end 2.4 new text begin subdivision 2, the Hennepin County Board of Commissioners must have written policies new text end 2.5 new text begin and procedures governing the use of forward pricing mechanisms. new text end 2.6     new text begin Subd. 5. new text end new text begin Oversight process. new text end new text begin (a) Before exercising authority under subdivision 2, new text end 2.7 new text begin the Hennepin County Board of Commissioners must establish an oversight process that new text end 2.8 new text begin provides for review of the county's used of forward pricing mechanisms. new text end 2.9 new text begin (b) The process must include: new text end 2.10 new text begin (1) internal or external audit reviews; new text end 2.11 new text begin (2) annual reports to, and review by, an internal investment committee; and new text end 2.12 new text begin (3) internal management control. new text end 2.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective without local approval the day new text end 2.14 new text begin following final enactment as provided under Minnesota Statutes, section 645.023, new text end 2.15 new text begin subdivision 1, paragraph (a). new text end