<a id="pl.1.3"></a><var>1.3</var>under forward pricing mechanisms;proposing coding for new law in Minnesota <br/>
<a id="pl.1.4"></a><var>1.4</var>Statutes, chapter 383B.<br/>
<a id="pl.1.5"></a><var>1.5</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
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<a id="bill.0.1.0"></a><a id="pl.1.6"></a><var>1.6</var>    Section 1. <b>[383B.1588] ENERGY FORWARD PRICING MECHANISMS.</b><br/>
<a id="pl.1.7"></a><var>1.7</var>    Subdivision 1. <b>Definitions.</b> The following definitions apply in this section.<br/>
<a id="pl.1.8"></a><var>1.8</var>(a) "Energy" means natural gas, heating oil, diesel fuel, unleaded fuel, or any other <br/>
<a id="pl.1.9"></a><var>1.9</var>energy source, except electric, used in Hennepin County operations.<br/>
<a id="pl.1.10"></a><var>1.10</var>(b) "Forward pricing mechanism" means either:<br/>
<a id="pl.1.11"></a><var>1.11</var>(1) a contract or financial instrument that obligates Hennepin County to buy or sell a <br/>
<a id="pl.1.12"></a><var>1.12</var>specified amount of an energy commodity at a future date and at a set price; or<br/>
<a id="pl.1.13"></a><var>1.13</var>(2) an option to buy or sell the contract or financial instrument.<br/>
<a id="pl.1.14"></a><var>1.14</var>    Subd. 2. <b>Authority provided.</b> Notwithstanding any other law to the contrary, <br/>
<a id="pl.1.15"></a><var>1.15</var>the Hennepin County Board of Commissioners may use forward pricing mechanisms <br/>
<a id="pl.1.16"></a><var>1.16</var>for budget risk reduction.<br/>
<a id="pl.1.17"></a><var>1.17</var>    Subd. 3. <b>Conditions.</b> (a) Forward pricing transactions made under this section must <br/>
<a id="pl.1.18"></a><var>1.18</var>be made only under the conditions in this subdivision.<br/>
<a id="pl.1.19"></a><var>1.19</var>(b) The amount of energy forward priced must not exceed the estimated energy <br/>
<a id="pl.1.20"></a><var>1.20</var>usage for Hennepin County operations for the period of time covered by the forward <br/>
<a id="pl.1.21"></a><var>1.21</var>pricing mechanism.<br/>
<a id="pl.1.22"></a><var>1.22</var>(c) The holding period and expiration date for any forward pricing mechanism must <br/>
<a id="pl.1.23"></a><var>1.23</var>not exceed 24 months from the trade date of the transaction.<br/>
<a id="pl.2.1"></a><var>2.1</var>(d) Separate accounts must be established for each operational energy for which <br/>
<a id="pl.2.2"></a><var>2.2</var>forward pricing mechanisms are used under this section.<br/>
<a id="pl.2.3"></a><var>2.3</var>    Subd. 4. <b>Written policies and procedures.</b> Before exercising authority under <br/>
<a id="pl.2.4"></a><var>2.4</var>subdivision 2, the Hennepin County Board of Commissioners must have written policies <br/>
<a id="pl.2.5"></a><var>2.5</var>and procedures governing the use of forward pricing mechanisms.<br/>
<a id="pl.2.6"></a><var>2.6</var>    Subd. 5. <b>Oversight process.</b> (a) Before exercising authority under subdivision 2, <br/>
<a id="pl.2.7"></a><var>2.7</var>the Hennepin County Board of Commissioners must establish an oversight process that <br/>
<a id="pl.2.8"></a><var>2.8</var>provides for review of the county's used of forward pricing mechanisms.<br/>
<a id="pl.2.9"></a><var>2.9</var>(b) The process must include:<br/>
<a id="pl.2.10"></a><var>2.10</var>(1) internal or external audit reviews;<br/>
<a id="pl.2.11"></a><var>2.11</var>(2) annual reports to, and review by, an internal investment committee; and<br/>
<a id="pl.2.12"></a><var>2.12</var>(3) internal management control.<br/>
<a id="pl.2.13"></a><var>2.13</var><b>EFFECTIVE DATE.</b>This section is effective without local approval the day <br/>
<a id="pl.2.14"></a><var>2.14</var>following final enactment as provided under Minnesota Statutes, section 645.023, <br/>
<a id="pl.2.15"></a><var>2.15</var>subdivision 1, paragraph (a).<br/>