<a id="pl.1.3"></a><var>1.3</var>authorizing redevelopment demolition loans; eliminating a semiannual report;<br/>
<a id="pl.1.4"></a><var>1.4</var>amending Minnesota Statutes 2010, sections 116J.555, subdivision 2; 116J.571; <br/>
<a id="pl.1.5"></a><var>1.5</var>116J.572; 116J.575, by adding a subdivision; 452.25, subdivisions 2, 3, 5, 6; <br/>
<a id="pl.1.6"></a><var>1.6</var>proposing coding for new law in Minnesota Statutes, chapter 116J.<br/>
<a id="pl.1.7"></a><var>1.7</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.8"></a><var>1.8</var>    Section 1. Minnesota Statutes 2010, section 116J.555, subdivision 2, is amended to <br/>
<a id="pl.1.9"></a><var>1.9</var>read:<br/>
<a id="pl.1.10"></a><var>1.10</var>    Subd. 2. <b>Application cycles; reporting to legislature.</b> (a) In making grants, the <br/>
<a id="pl.1.11"></a><var>1.11</var>commissioner shall establish semiannual application deadlines in which grants will be <br/>
<a id="pl.1.12"></a><var>1.12</var>authorized from all or part of the available appropriations of money in the account.<br/>
<a id="pl.1.13"></a><var>1.13</var>(b) After each semiannual cycle in which grants are awarded, the commissioner shall <br/>
<a id="pl.1.14"></a><var>1.14</var>report to the environment and natural resources committees of the senate and house of <br/>
<a id="pl.1.15"></a><var>1.15</var>representatives, the Finance Division of the senate Committee on Environment and Natural <br/>
<a id="pl.1.16"></a><var>1.16</var>Resources, and the house of representatives Committee on Environment and Natural <br/>
<a id="pl.1.17"></a><var>1.17</var>Resources finance the grants awarded and appropriate supporting information describing <br/>
<a id="pl.1.18"></a><var>1.18</var>each grant made. This report must be made within 30 days after the grants are awarded.<br/>
<a id="pl.1.19"></a><var>1.19</var>(c) (b) The commissioner shall annually report to the legislative committees in <br/>
<a id="pl.1.20"></a><var>1.20</var>paragraph (b) committees of the senate and house of representatives with jurisdiction over <br/>
<a id="pl.1.21"></a><var>1.21</var>environment and natural resources finance on the status of the cleanup projects undertaken <br/>
<a id="pl.1.22"></a><var>1.22</var>under grants made under the programs. The commissioner shall include in the annual <br/>
<a id="pl.1.23"></a><var>1.23</var>report information on the cleanup and development activities undertaken for the grants <br/>
<a id="pl.1.24"></a><var>1.24</var>made in that and previous fiscal years. The commissioner shall make this report no later <br/>
<a id="pl.1.25"></a><var>1.25</var>than 120 days after the end of the fiscal year.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.2.1"></a><var>2.1</var>    Sec. 2. Minnesota Statutes 2010, section 116J.571, is amended to read:<br/>
<a id="pl.2.2"></a><var>2.2</var><b>116J.571 CREATION OF ACCOUNTS.</b><br/>
<a id="pl.2.3"></a><var>2.3</var>Two redevelopment accounts are created, one in the general fund and one in <br/>
<a id="pl.2.4"></a><var>2.4</var>the bond proceeds fund. Money in the accounts for the program may be used to make <br/>
<a id="pl.2.5"></a><var>2.5</var>grants as provided in section 
         <statute_ref>116J.575</statute_ref> and loans as provided in section 116J.5761 and <br/>
<a id="pl.2.6"></a><var>2.6</var>to pay for the commissioner's costs in reviewing applications and making grants and <br/>
<a id="pl.2.7"></a><var>2.7</var>loans and is available until spent. The repayment of principal and interest on loans and <br/>
<a id="pl.2.8"></a><var>2.8</var>investment income earned on money in the account is deposited in the special revenue <br/>
<a id="pl.2.9"></a><var>2.9</var>fund and may be used for making grants and loans and for administrative costs and are <br/>
<a id="pl.2.10"></a><var>2.10</var>appropriated for such purposes.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.2.11"></a><var>2.11</var>    Sec. 3. Minnesota Statutes 2010, section 116J.572, is amended to read:<br/>
<a id="pl.2.12"></a><var>2.12</var><b>116J.572 DEFINITIONS.</b><br/>
<a id="pl.2.13"></a><var>2.13</var>    Subdivision 1. <b>Scope of application.</b> For purposes of sections 
         <statute_ref>116J.571</statute_ref> to 
         <statute_ref>116J.575</statute_ref> <br/>
<a id="pl.2.14"></a><var>2.14</var>116J.5765, the terms in this section have the meanings given.<br/>
<a id="pl.2.15"></a><var>2.15</var>    Subd. 1a. <b>Demolition costs.</b> "Demolition costs" means the costs of demolition, <br/>
<a id="pl.2.16"></a><var>2.16</var>destruction, removal and clearance of all structures and other improvements on the project <br/>
<a id="pl.2.17"></a><var>2.17</var>site, including interior remedial activities, and proper disposal thereof. As used in this <br/>
<a id="pl.2.18"></a><var>2.18</var>subdivision, "structure" has the meaning given it in section 116G.03, subdivision 11.<br/>
<a id="pl.2.19"></a><var>2.19</var>    Subd. 2. <b>Development authority.</b> "Development authority" includes a statutory <br/>
<a id="pl.2.20"></a><var>2.20</var>or home rule charter city, county, housing and redevelopment authority, economic <br/>
<a id="pl.2.21"></a><var>2.21</var>development authority, or port authority.<br/>
<a id="pl.2.22"></a><var>2.22</var>    Subd. 2a. <b>Metropolitan area.</b> "Metropolitan area" means the seven-county <br/>
<a id="pl.2.23"></a><var>2.23</var>metropolitan area, as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>.<br/>
<a id="pl.2.24"></a><var>2.24</var>    Subd. 2b. <b>Municipality.</b> "Municipality" means the statutory or home rule charter <br/>
<a id="pl.2.25"></a><var>2.25</var>city, town, or, in the case of unorganized territory, the county in which the redevelopment <br/>
<a id="pl.2.26"></a><var>2.26</var>or project is located.<br/>
<a id="pl.2.27"></a><var>2.27</var>    Subd. 3. <b>Redevelopment costs or costs.</b> "Redevelopment costs" or "costs" means <br/>
<a id="pl.2.28"></a><var>2.28</var>the costs of land acquisition, stabilizing unstable soils when infill is required, demolition, <br/>
<a id="pl.2.29"></a><var>2.29</var>infrastructure improvements, and ponding or other environmental infrastructure, <br/>
<a id="pl.2.30"></a><var>2.30</var>demolition costs and costs necessary for adaptive reuse of buildings, including remedial <br/>
<a id="pl.2.31"></a><var>2.31</var>activities.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.2.32"></a><var>2.32</var>    Sec. 4. Minnesota Statutes 2010, section 116J.575, is amended by adding a subdivision <br/>
<a id="pl.2.33"></a><var>2.33</var>to read:<br/>
<a id="pl.3.1"></a><var>3.1</var>    Subd. 4. <b>Grant repayment.</b> If a project fails to substantially provide the public <br/>
<a id="pl.3.2"></a><var>3.2</var>benefits listed in the grant application within five years from the date of the grant award, <br/>
<a id="pl.3.3"></a><var>3.3</var>the commissioner may require that 100 percent of the grant amount be repaid by the <br/>
<a id="pl.3.4"></a><var>3.4</var>development authority over a term not to exceed ten years. The commissioner may <br/>
<a id="pl.3.5"></a><var>3.5</var>exercise discretion to require repayment of only a portion of the grant amount taking into <br/>
<a id="pl.3.6"></a><var>3.6</var>account the public benefits generated by the completed development.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.3.7"></a><var>3.7</var>    Sec. 5. <b>[116J.5761] LOANS.</b><br/>
<a id="pl.3.8"></a><var>3.8</var>    Subdivision 1. <b>Authority.</b> The commissioner may make loans to development <br/>
<a id="pl.3.9"></a><var>3.9</var>authorities for projects that meet the criteria under sections 116J.5761 to 116J.5764. The <br/>
<a id="pl.3.10"></a><var>3.10</var>commissioner may make a loan for up to 100 percent of the estimated land acquisition and <br/>
<a id="pl.3.11"></a><var>3.11</var>demolition costs of the project. The determination whether to make a loan for a project <br/>
<a id="pl.3.12"></a><var>3.12</var>is within the discretion of the commissioner, subject to this section, sections 116J.5761 <br/>
<a id="pl.3.13"></a><var>3.13</var>to 116J.5764, and available unencumbered money in the redevelopment accounts. The <br/>
<a id="pl.3.14"></a><var>3.14</var>commissioner's decisions and application of the priorities under this section are not subject <br/>
<a id="pl.3.15"></a><var>3.15</var>to judicial review, except for abuse of discretion.<br/>
<a id="pl.3.16"></a><var>3.16</var>    Subd. 2. <b>Qualifying projects.</b> A project qualifies for a loan under this section, <br/>
<a id="pl.3.17"></a><var>3.17</var>if the following criteria are met:<br/>
<a id="pl.3.18"></a><var>3.18</var>(1) the property and structures are owned by the development authority;<br/>
<a id="pl.3.19"></a><var>3.19</var>(2) the structures on the property have been vacant for at least one year;<br/>
<a id="pl.3.20"></a><var>3.20</var>(3) the structures constitute a threat to public safety because of inadequate <br/>
<a id="pl.3.21"></a><var>3.21</var>maintenance, dilapidation, obsolescence, or abandonment;<br/>
<a id="pl.3.22"></a><var>3.22</var>(4) the structures are not listed on the National Register of Historic Places; and<br/>
<a id="pl.3.23"></a><var>3.23</var>(5) upon completion of the demolition, the development authority reasonably <br/>
<a id="pl.3.24"></a><var>3.24</var>expects that the property will be improved and these improvements will result in economic <br/>
<a id="pl.3.25"></a><var>3.25</var>development benefits to the municipality.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.3.26"></a><var>3.26</var>    Sec. 6. <b>[116J.5762] LOAN APPLICATIONS.</b><br/>
<a id="pl.3.27"></a><var>3.27</var>    Subdivision 1. <b>Application required.</b> To obtain a demolition loan, a development <br/>
<a id="pl.3.28"></a><var>3.28</var>authority shall apply to the commissioner. The governing body of the municipality must <br/>
<a id="pl.3.29"></a><var>3.29</var>approve the application by resolution.<br/>
<a id="pl.3.30"></a><var>3.30</var>    Subd. 2. <b>Required content.</b> The commissioner shall prescribe and provide the <br/>
<a id="pl.3.31"></a><var>3.31</var>application form. The application must include at least the following information:<br/>
<a id="pl.3.32"></a><var>3.32</var>(1) identification of the property;<br/>
<a id="pl.3.33"></a><var>3.33</var>(2) proof of ownership by the development authority;<br/>
<a id="pl.4.1"></a><var>4.1</var>(3) a description of how the structures on the property constitute a threat to public <br/>
<a id="pl.4.2"></a><var>4.2</var>safety, are functionally obsolete, or are economically unfeasible to repair;<br/>
<a id="pl.4.3"></a><var>4.3</var>(4) length of vacancy;<br/>
<a id="pl.4.4"></a><var>4.4</var>(5) a detailed estimate, along with supporting evidence, of the total demolition <br/>
<a id="pl.4.5"></a><var>4.5</var>costs for the project;<br/>
<a id="pl.4.6"></a><var>4.6</var>(6) evidence that the structures on the property are not listed on the National Register <br/>
<a id="pl.4.7"></a><var>4.7</var>of Historic Places;<br/>
<a id="pl.4.8"></a><var>4.8</var>(7) as assessment of the development potential or likely use of the property after <br/>
<a id="pl.4.9"></a><var>4.9</var>completion of the demolition plan;<br/>
<a id="pl.4.10"></a><var>4.10</var>(8) the current appraised or assessed value of the property;<br/>
<a id="pl.4.11"></a><var>4.11</var>(9) financial documentation necessary for loan underwriting;<br/>
<a id="pl.4.12"></a><var>4.12</var>(10) other sources of funding if the total estimated demolition costs exceed the <br/>
<a id="pl.4.13"></a><var>4.13</var>loan amount;<br/>
<a id="pl.4.14"></a><var>4.14</var>(11) the proposed source of funds to be used for repayment of the loan;<br/>
<a id="pl.4.15"></a><var>4.15</var>(12) information showing the applicant's financial condition and ability to repay <br/>
<a id="pl.4.16"></a><var>4.16</var>the loan;<br/>
<a id="pl.4.17"></a><var>4.17</var>(13) the proposed term and principal repayment schedule for the loan;<br/>
<a id="pl.4.18"></a><var>4.18</var>(14) the statutory authorization for the applicant to issue bonds, together with a <br/>
<a id="pl.4.19"></a><var>4.19</var>statement that the statutory provision authorizes the use of proceeds of such bonds to pay <br/>
<a id="pl.4.20"></a><var>4.20</var>demolition costs and secure the loan; and<br/>
<a id="pl.4.21"></a><var>4.21</var>(15) any additional information the commissioner prescribes.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.4.22"></a><var>4.22</var>    Sec. 7. <b>[116J.5763] PRIORITIES.</b><br/>
<a id="pl.4.23"></a><var>4.23</var>    Subdivision 1. <b>Priorities.</b> (a) If applications for loans exceed the available <br/>
<a id="pl.4.24"></a><var>4.24</var>appropriations, loans shall be made for projects that, in the commissioner's judgment, <br/>
<a id="pl.4.25"></a><var>4.25</var>provide the highest return in public benefits for the public costs incurred. "Public benefits" <br/>
<a id="pl.4.26"></a><var>4.26</var>include health, safety and other environmental benefits, blight reduction including <br/>
<a id="pl.4.27"></a><var>4.27</var>the property's potential for improved economic vitality, functionality and aesthetics, <br/>
<a id="pl.4.28"></a><var>4.28</var>community stabilization, crime reduction, reduced maintenance costs, and the potential <br/>
<a id="pl.4.29"></a><var>4.29</var>for future development. In making this judgment, the commissioner shall consider the <br/>
<a id="pl.4.30"></a><var>4.30</var>following:<br/>
<a id="pl.4.31"></a><var>4.31</var>(1) the extent to which the existing property conditions threaten public safety;<br/>
<a id="pl.4.32"></a><var>4.32</var>(2) the length of vacancy of the property;<br/>
<a id="pl.4.33"></a><var>4.33</var>(3) the development potential of the property;<br/>
<a id="pl.4.34"></a><var>4.34</var>(4) the proximity of the property to existing sufficient public infrastructure;<br/>
<a id="pl.4.35"></a><var>4.35</var>(5) the applicant's financial condition and ability to repay the loan.<br/>
<a id="pl.5.1"></a><var>5.1</var>(b) The factors in paragraph (a) are not listed in a rank order or priority; rather, the <br/>
<a id="pl.5.2"></a><var>5.2</var>commissioner may weigh each factor, depending upon the facts and circumstances, as <br/>
<a id="pl.5.3"></a><var>5.3</var>the commissioner considers appropriate. The commissioner may consider other factors <br/>
<a id="pl.5.4"></a><var>5.4</var>that affect the net return of public benefits.<br/>
<a id="pl.5.5"></a><var>5.5</var>    Subd. 2. <b>Application cycle.</b> The commissioner shall establish semiannual <br/>
<a id="pl.5.6"></a><var>5.6</var>application deadlines in which loans will be authorized from available money in the <br/>
<a id="pl.5.7"></a><var>5.7</var>accounts.<br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.5.8"></a><var>5.8</var>    Sec. 8. <b>[116J.5764] LOAN TERMS AND CONDITIONS.</b><br/>
<a id="pl.5.9"></a><var>5.9</var>    Subdivision 1. <b>Terms.</b> Loans to development authorities for demolition costs may <br/>
<a id="pl.5.10"></a><var>5.10</var>be made by the commissioner subject to the following terms and conditions:<br/>
<a id="pl.5.11"></a><var>5.11</var>(1) the agreement to repay the loan must be a general obligation of the development <br/>
<a id="pl.5.12"></a><var>5.12</var>authority, payable primarily from a dedicated source of revenue, and the development <br/>
<a id="pl.5.13"></a><var>5.13</var>authority must deliver its bond or note to the commissioner to secure the loan;<br/>
<a id="pl.5.14"></a><var>5.14</var>(2) the term of the loan may not exceed 15 years;<br/>
<a id="pl.5.15"></a><var>5.15</var>(3) the loan shall bear interest at a rate equal to two percent, but interest will not <br/>
<a id="pl.5.16"></a><var>5.16</var>accrue during the first two years of the loan term;<br/>
<a id="pl.5.17"></a><var>5.17</var>(4) the development authority shall make semiannual interest payments and annual <br/>
<a id="pl.5.18"></a><var>5.18</var>principal payments beginning in the third year of the loan until the end of the term;<br/>
<a id="pl.5.19"></a><var>5.19</var>(5) the principal amount of a loan may not exceed $1,000,000;<br/>
<a id="pl.5.20"></a><var>5.20</var>(6) loan proceeds shall be disbursed for eligible demolition costs as incurred or <br/>
<a id="pl.5.21"></a><var>5.21</var>paid by borrower and upon submission of invoices and other supporting documentation <br/>
<a id="pl.5.22"></a><var>5.22</var>satisfactory to the commissioner;<br/>
<a id="pl.5.23"></a><var>5.23</var>(7) an eligible borrower shall establish a dedicated source of revenue for repayment <br/>
<a id="pl.5.24"></a><var>5.24</var>of the loan.<br/>
<a id="pl.5.25"></a><var>5.25</var>    Subd. 2. <b>Modification of loan terms.</b> The commissioner has the discretion to <br/>
<a id="pl.5.26"></a><var>5.26</var>consent to the modification of the rate of interest, time of payment, installment of principal <br/>
<a id="pl.5.27"></a><var>5.27</var>or interest, or other term of a loan made under sections 116J.5761 to 116J.5764.<br/>
<a id="pl.5.28"></a><var>5.28</var>    Subd. 3. <b>Forgiveness.</b> The commissioner may forgive principal of the loan and <br/>
<a id="pl.5.29"></a><var>5.29</var>interest accrued but unpaid thereon, if any, up to 50 percent of the original loan amount, <br/>
<a id="pl.5.30"></a><var>5.30</var>not to exceed the costs of demolition, upon completion of the redevelopment plan, if the <br/>
<a id="pl.5.31"></a><var>5.31</var>project would otherwise have received grant funding in the most recent semiannual grant <br/>
<a id="pl.5.32"></a><var>5.32</var>round, based on the priorities in section 116J.575.<br/>
<br/>
<a id="bill.0.9.0"></a><a id="pl.5.33"></a><var>5.33</var>    Sec. 9. <b>[116J.5765] NONLIABILITY.</b><br/>
<a id="pl.6.1"></a><var>6.1</var>The state shall have no responsibility or liability relating to or arising out of <br/>
<a id="pl.6.2"></a><var>6.2</var>activities at the site of a project solely by reason of the making of a grant or loan by the <br/>
<a id="pl.6.3"></a><var>6.3</var>commissioner under sections 116J.5761 to 116J.5764.<br/>
<br/>
<a id="bill.0.10.0"></a><a id="pl.6.4"></a><var>6.4</var>    Sec. 10. Minnesota Statutes 2010, section 452.25, subdivision 2, is amended to read:<br/>
<a id="pl.6.5"></a><var>6.5</var>    Subd. 2. <b>Definitions.</b> For purposes of this section:<br/>
<a id="pl.6.6"></a><var>6.6</var>(a) "City" means a statutory or home rule charter city, section 
         <statute_ref>410.015</statute_ref> to the <br/>
<a id="pl.6.7"></a><var>6.7</var>contrary notwithstanding.<br/>
<a id="pl.6.8"></a><var>6.8</var>(b) "Cooperative association" means a cooperative association organized under <br/>
<a id="pl.6.9"></a><var>6.9</var>chapter 308A.<br/>
<a id="pl.6.10"></a><var>6.10</var>(c) "Governing body" means (1) the city council in a city that operates a municipal <br/>
<a id="pl.6.11"></a><var>6.11</var>utility, or (2) a board, commission, or body empowered by law, city charter, or ordinance <br/>
<a id="pl.6.12"></a><var>6.12</var>or resolution of the city council to control and operate the municipal utility.<br/>
<a id="pl.6.13"></a><var>6.13</var>(d) "Investor-owned utility" means an entity that provides utility services to the <br/>
<a id="pl.6.14"></a><var>6.14</var>public under chapter 216B and that is owned by private persons.<br/>
<a id="pl.6.15"></a><var>6.15</var>(e) "Municipal power agency" means an organization created under sections 
         <statute_ref>453.51</statute_ref> <br/>
<a id="pl.6.16"></a><var>6.16</var>to 
         <statute_ref>453.62</statute_ref>.<br/>
<a id="pl.6.17"></a><var>6.17</var>(f) "Municipal utility" means a utility owned, operated, or controlled by a city to <br/>
<a id="pl.6.18"></a><var>6.18</var>provide utility services.<br/>
<a id="pl.6.19"></a><var>6.19</var>(g) "Public utility" or "utility" means a provider of electric, gas, or water facilities <br/>
<a id="pl.6.20"></a><var>6.20</var>or services or an entity engaged in other similar or related operations authorized by law <br/>
<a id="pl.6.21"></a><var>6.21</var>or charter.<br/>
<br/>
<a id="bill.0.11.0"></a><a id="pl.6.22"></a><var>6.22</var>    Sec. 11. Minnesota Statutes 2010, section 452.25, subdivision 3, is amended to read:<br/>
<a id="pl.6.23"></a><var>6.23</var>    Subd. 3. <b>Authority.</b> (a) Upon the approval of its elected utilities commission or, if <br/>
<a id="pl.6.24"></a><var>6.24</var>there be none, its city council, a municipal utility may enter into a joint venture with other <br/>
<a id="pl.6.25"></a><var>6.25</var>municipal utilities, municipal power agencies, cooperative associations, or investor-owned <br/>
<a id="pl.6.26"></a><var>6.26</var>utilities, or federally recognized Indian tribes to provide utility services. Retail electric <br/>
<a id="pl.6.27"></a><var>6.27</var>utility services provided by a joint venture must be within the boundaries of each utility's <br/>
<a id="pl.6.28"></a><var>6.28</var>exclusive electric service territory as shown on the map of service territories maintained <br/>
<a id="pl.6.29"></a><var>6.29</var>by the department of commerce. The terms and conditions of the joint venture are <br/>
<a id="pl.6.30"></a><var>6.30</var>subject to ratification by the governing bodies of the respective utilities and may include <br/>
<a id="pl.6.31"></a><var>6.31</var>the formation of a corporate or other separate legal entity with an administrative and <br/>
<a id="pl.6.32"></a><var>6.32</var>governance structure independent of the respective utilities.<br/>
<a id="pl.6.33"></a><var>6.33</var>(b) A corporate or other separate legal entity, if formed:<br/>
<a id="pl.7.1"></a><var>7.1</var>(1) has the authority and legal capacity and, in the exercise of the joint venture, the <br/>
<a id="pl.7.2"></a><var>7.2</var>powers, privileges, responsibilities, and duties authorized by this section;<br/>
<a id="pl.7.3"></a><var>7.3</var>(2) is subject to the laws and rules applicable to the organization, internal <br/>
<a id="pl.7.4"></a><var>7.4</var>governance, and activities of the entity;<br/>
<a id="pl.7.5"></a><var>7.5</var>(3) in connection with its property and affairs and in connection with property within <br/>
<a id="pl.7.6"></a><var>7.6</var>its control, may exercise any and all powers that may be exercised by a natural person <br/>
<a id="pl.7.7"></a><var>7.7</var>or a private corporation or other private legal entity in connection with similar property <br/>
<a id="pl.7.8"></a><var>7.8</var>and affairs;<br/>
<a id="pl.7.9"></a><var>7.9</var>(4) a joint venture that does not include an investor-owned utility may elect to be <br/>
<a id="pl.7.10"></a><var>7.10</var>deemed a municipal utility or a cooperative association for purposes of chapter 216B or <br/>
<a id="pl.7.11"></a><var>7.11</var>other federal or state law regulating utility operations; and<br/>
<a id="pl.7.12"></a><var>7.12</var>(5) for a joint venture that includes an investor-owned utility, the commission has <br/>
<a id="pl.7.13"></a><var>7.13</var>authority over the activities, services, and rates of the joint venture, and may exercise that <br/>
<a id="pl.7.14"></a><var>7.14</var>authority, to the same extent the commission has authority over the activities, services, <br/>
<a id="pl.7.15"></a><var>7.15</var>and rates of the investor-owned utility itself.<br/>
<a id="pl.7.16"></a><var>7.16</var>(c) Any corporation, if formed, must comply with section 
         <statute_ref>465.719, subdivisions 9, <br/>
<a id="pl.7.17"></a><var>7.17</var>10, 11, 12, 13, and 14
         </statute_ref>. The term "political subdivision," as it is used in section 
         <statute_ref>465.719</statute_ref>, <br/>
<a id="pl.7.18"></a><var>7.18</var>shall refer to the city council of a city.<br/>
<br/>
<a id="bill.0.12.0"></a><a id="pl.7.19"></a><var>7.19</var>    Sec. 12. Minnesota Statutes 2010, section 452.25, subdivision 5, is amended to read:<br/>
<a id="pl.7.20"></a><var>7.20</var>    Subd. 5. <b>Powers.</b> (a) A joint venture under this section has the powers, privileges, <br/>
<a id="pl.7.21"></a><var>7.21</var>responsibilities, and duties of the separate utilities entering into the joint venture as the <br/>
<a id="pl.7.22"></a><var>7.22</var>joint venture agreement may provide, including the powers under paragraph (c), except <br/>
<a id="pl.7.23"></a><var>7.23</var>that:<br/>
<a id="pl.7.24"></a><var>7.24</var>(1) with respect to retail electric utility services, a joint venture shall not enlarge or <br/>
<a id="pl.7.25"></a><var>7.25</var>extend the service territory served by the joint venture by virtue of the authority granted in <br/>
<a id="pl.7.26"></a><var>7.26</var>sections 
         <statute_ref>216B.44</statute_ref>, 
         <statute_ref>216B.45</statute_ref>, and 
         <statute_ref>216B.47</statute_ref>;<br/>
<a id="pl.7.27"></a><var>7.27</var>(2) a joint venture may extend service to an existing connected load of 2,000 <br/>
<a id="pl.7.28"></a><var>7.28</var>kilowatts or more, pursuant to section 
         <statute_ref>216B.42</statute_ref>, when the load is outside of the assigned <br/>
<a id="pl.7.29"></a><var>7.29</var>service area of the joint venture, or of the electric utilities party to the joint venture, only if <br/>
<a id="pl.7.30"></a><var>7.30</var>the load is already being served by one of the electric utilities party to the joint venture; and<br/>
<a id="pl.7.31"></a><var>7.31</var>(3) a privately owned utility, as defined in section 
         <statute_ref>216B.02</statute_ref>, may extend service <br/>
<a id="pl.7.32"></a><var>7.32</var>to an existing connected load of 2,000 kilowatts or more, pursuant to section 
         <statute_ref>216B.42</statute_ref>, <br/>
<a id="pl.7.33"></a><var>7.33</var>when the load is located within the assigned service territory of the joint venture, or of <br/>
<a id="pl.7.34"></a><var>7.34</var>the electric utilities party to the joint venture, only if the load is already being served <br/>
<a id="pl.7.35"></a><var>7.35</var>by that privately owned utility.<br/>
<a id="pl.8.1"></a><var>8.1</var>(b) The limitations of paragraph (a), clauses (1) to (3), do not apply if written <br/>
<a id="pl.8.2"></a><var>8.2</var>consent to the action is obtained from the electric utility assigned to and serving the <br/>
<a id="pl.8.3"></a><var>8.3</var>affected service territory or connected load.<br/>
<a id="pl.8.4"></a><var>8.4</var>(c) Joint venture powers include, but are not limited to, the authority to:<br/>
<a id="pl.8.5"></a><var>8.5</var>(1) finance, own, acquire, construct, and operate facilities necessary to provide <br/>
<a id="pl.8.6"></a><var>8.6</var>utility services to retail customers of the joint venture, including generation, transmission, <br/>
<a id="pl.8.7"></a><var>8.7</var>storage and distribution facilities, and like facilities used in other utility services;<br/>
<a id="pl.8.8"></a><var>8.8</var>(2) combine assigned service territories, in whole or in part, upon notice to, hearing <br/>
<a id="pl.8.9"></a><var>8.9</var>by, and approval of the public utilities commission;<br/>
<a id="pl.8.10"></a><var>8.10</var>(3) serve customers in the utilities' service territories or in the combined service <br/>
<a id="pl.8.11"></a><var>8.11</var>territory;<br/>
<a id="pl.8.12"></a><var>8.12</var>(4) combine, share, or employ administrative, managerial, operational, or other staff <br/>
<a id="pl.8.13"></a><var>8.13</var>if combining or sharing will not degrade safety, reliability, or customer service standards;<br/>
<a id="pl.8.14"></a><var>8.14</var>(5) provide for joint administrative functions, such as meter reading and billings;<br/>
<a id="pl.8.15"></a><var>8.15</var>(6) purchase or sell utility services at wholesale for resale to customers;<br/>
<a id="pl.8.16"></a><var>8.16</var>(7) provide conservation programs, other utility programs, and public interest <br/>
<a id="pl.8.17"></a><var>8.17</var>programs, such as cold weather shutoff protection and conservation spending programs, <br/>
<a id="pl.8.18"></a><var>8.18</var>as required by law and rule; and<br/>
<a id="pl.8.19"></a><var>8.19</var>(8) participate as the parties deem necessary in providing utility services with other <br/>
<a id="pl.8.20"></a><var>8.20</var>municipal utilities, cooperative utilities, investor-owned utilities, federally recognized <br/>
<a id="pl.8.21"></a><var>8.21</var>Indian tribes, or other entities, public or private.<br/>
<a id="pl.8.22"></a><var>8.22</var>(d) Notwithstanding any contrary provision within this section, a joint venture <br/>
<a id="pl.8.23"></a><var>8.23</var>formed under this section may engage in wholesale utility services unless the municipal <br/>
<a id="pl.8.24"></a><var>8.24</var>utility, municipal power agency, cooperative association, or investor-owned utility, or <br/>
<a id="pl.8.25"></a><var>8.25</var>federally recognized Indian tribe party to the joint venture is prohibited under current law <br/>
<a id="pl.8.26"></a><var>8.26</var>from conducting that activity; but, in any case, the joint venture may provide wholesale <br/>
<a id="pl.8.27"></a><var>8.27</var>services to a municipal utility, a cooperative association, or an investor-owned utility, or a <br/>
<a id="pl.8.28"></a><var>8.28</var>federally recognized Indian tribe that is party to the joint venture.<br/>
<a id="pl.8.29"></a><var>8.29</var>(e) This subdivision does not limit the authority of a joint venture to exercise powers <br/>
<a id="pl.8.30"></a><var>8.30</var>of eminent domain for other utility purposes to the same extent as is permitted of those <br/>
<a id="pl.8.31"></a><var>8.31</var>utilities party to the joint venture.<br/>
<br/>
<a id="bill.0.13.0"></a><a id="pl.8.32"></a><var>8.32</var>    Sec. 13. Minnesota Statutes 2010, section 452.25, subdivision 6, is amended to read:<br/>
<a id="pl.8.33"></a><var>8.33</var>    Subd. 6. <b>Construction.</b> (a) The powers conferred by this section are in addition <br/>
<a id="pl.8.34"></a><var>8.34</var>to the powers conferred by other law or charter. A joint venture under this section, and <br/>
<a id="pl.8.35"></a><var>8.35</var>a municipal utility with respect to any joint venture under this section, have the powers <br/>
<a id="pl.9.1"></a><var>9.1</var>necessary to effect the intent and purpose of this section, including, but not limited to, the <br/>
<a id="pl.9.2"></a><var>9.2</var>expenditure of public funds and the transfer of real or personal property in accordance <br/>
<a id="pl.9.3"></a><var>9.3</var>with the terms and conditions of the joint venture and the joint venture agreement. This <br/>
<a id="pl.9.4"></a><var>9.4</var>section is complete in itself with respect to the formation and operation of a joint venture <br/>
<a id="pl.9.5"></a><var>9.5</var>under this section and with respect to a municipal utility, a cooperative association, or an <br/>
<a id="pl.9.6"></a><var>9.6</var>investor-owned utility party to a joint venture related to their creation of and dealings <br/>
<a id="pl.9.7"></a><var>9.7</var>with the joint venture, without regard to other laws or city charter provisions that do not <br/>
<a id="pl.9.8"></a><var>9.8</var>specifically address or refer to this section or a joint venture created under this section.<br/>
<a id="pl.9.9"></a><var>9.9</var>(b) This section must not be construed to supersede or modify:<br/>
<a id="pl.9.10"></a><var>9.10</var>(1) the power of a city council conferred by charter to overrule or override any action <br/>
<a id="pl.9.11"></a><var>9.11</var>of a governing body other than the actions of the joint venture;<br/>
<a id="pl.9.12"></a><var>9.12</var>(2) chapter 216B;<br/>
<a id="pl.9.13"></a><var>9.13</var>(3) any referendum requirements applicable to the creation of a new electric utility <br/>
<a id="pl.9.14"></a><var>9.14</var>by a municipality under section 
         <statute_ref>216B.46</statute_ref> or 
         <statute_ref>216B.465</statute_ref>; or<br/>
<a id="pl.9.15"></a><var>9.15</var>(4) any powers, privileges, or authority or any duties or obligations of a municipal <br/>
<a id="pl.9.16"></a><var>9.16</var>utility, municipal power agency, or cooperative association, or federally recognized <br/>
<a id="pl.9.17"></a><var>9.17</var>Indian tribe acting as a separate legal entity without reference to a joint venture created <br/>
<a id="pl.9.18"></a><var>9.18</var>under this section.<br/>