HF 867

as introduced - 90th Legislature (2017 - 2018) Posted on 02/13/2017 01:24pm

A bill for an act
relating to capital investment; providing financial assistance to mitigate nitrates
and pesticides in drinking water; appropriating money and authorizing sale of
revenue bonds; proposing coding for new law in Minnesota Statutes, chapter 103H.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [103H.301] PRIVATE WELL NITRATE MITIGATION ASSISTANCE;
REVENUE BONDS.
new text end

new text begin Subdivision 1. new text end

new text begin Financial assistance. new text end

new text begin The commissioner of agriculture, in consultation
with the commissioner of health, must provide grants to owners of private domestic wells
contaminated with nitrates or pesticides. The assistance may be used only to cover the costs
associated with mitigating nitrate or pesticide contamination of private domestic wells,
including upgrading or replacing wells, installing water treatment systems, and capping
wells.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin To be eligible for financial assistance under this section, an owner
of a private domestic well must submit an application to the commissioner and:
new text end

new text begin (1) provide sufficient evidence that:
new text end

new text begin (i) the level of nitrate in the well water is over ten parts per million; or
new text end

new text begin (ii) the level of nitrate in the well water is over three parts per million and the well is
the primary domestic water source for a child under 18 years of age, a pregnant woman, or
a woman who intends to become pregnant;
new text end

new text begin (2) allow the commissioner to access the well for inspection and testing purposes; and
new text end

new text begin (3) demonstrate that the nitrate contamination was not caused by the owner of the well.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin The commissioner of management and budget shall sell
and issue state revenue bonds to:
new text end

new text begin (1) provide financial assistance under this section;
new text end

new text begin (2) pay the costs of issuance, debt service, and bond insurance or other credit
enhancements and to fund reserves; and
new text end

new text begin (3) refund bonds issued under this section.
new text end

new text begin Subd. 4. new text end

new text begin Revenue sources. new text end

new text begin The debt service on bonds issued under this section is payable
only from the following sources:
new text end

new text begin (1) money from the fertilizer inspection account under section 18C.131;
new text end

new text begin (2) money from the pesticide regulatory account under section 18B.05; and
new text end

new text begin (3) other revenues pledged to the payment of the bonds.
new text end

new text begin Subd. 5. new text end

new text begin Procedure; certain costs of issuance. new text end

new text begin (a) The commissioner of management
and budget may sell and issue the bonds on the terms and conditions the commissioner
determines to be in the best interests of the state. The bonds may be sold at public or private
sale. The commissioner may enter any agreements or pledges the commissioner determines
necessary or useful to sell the bonds that are not inconsistent with this section. Sections
16A.672 to 16A.675 apply to the bonds. The proceeds of the bonds issued under this section
must be credited to a private well mitigation assistance bond proceeds account in the state
treasury.
new text end

new text begin (b) Before the proceeds are received in the private well mitigation assistance bond
proceeds account, the commissioner of management and budget may transfer to the account
from the fertilizer inspection account and the pesticide regulatory account the amounts not
exceeding the expected proceeds from the next bond sale. The commissioner of management
and budget shall return these amounts to the fertilizer inspection account and the pesticide
regulatory account by transferring proceeds when received. The amounts of these transfers
are appropriated from the fertilizer inspection account, the pesticide regulatory account,
and the private well mitigation assistance bond proceeds account.
new text end

new text begin Subd. 6. new text end

new text begin Refunding bonds. new text end

new text begin The commissioner of management and budget may issue
bonds to refund outstanding bonds issued under this section, including the payment of any
redemption premiums on the bonds and any interest accrued or to accrue to the first
redemption date after delivery of the refunding bonds. The proceeds of the refunding bonds
may, in the discretion of the commissioner, be applied to the purchases or payment at
maturity of the bonds to be refunded, or the redemption of the outstanding bonds on the
first redemption date after delivery of the refunding bonds and may, until so used, be placed
in escrow to be applied to the purchase, retirement, or redemption. Refunding bonds issued
under this subdivision must be issued and secured in the manner provided by the
commissioner.
new text end

new text begin Subd. 7. new text end

new text begin Not a general or moral obligation. new text end

new text begin Bonds issued under this section are not
public debt, and the full faith, credit, and taxing powers of the state are not pledged for their
payment. The bonds may not be paid, directly in whole or in part, from a tax of statewide
application on any class of property, income, transaction, or privilege. Payment of the bonds
is limited to the revenues explicitly authorized to be pledged under this section. The state
neither makes nor has a moral obligation to pay the bonds if the pledged revenues and other
legal security for them is insufficient.
new text end

new text begin Subd. 8. new text end

new text begin Trustee. new text end

new text begin The commissioner may contract with and appoint a trustee for bond
holders. The trustee has the powers and authority vested in it by the commissioner under
the bond and trust indentures.
new text end

new text begin Subd. 9. new text end

new text begin Pledges. new text end

new text begin Any pledge made by the commissioner is valid and binding from the
time the pledge is made. The money or property pledged and later received by the
commissioner is immediately subject to the lien of the pledge without any physical delivery
of the property or money or further act, and the lien of any pledge is valid and binding as
against all parties having claims of any kind in tort, contract, or otherwise against the
commissioner, whether or not those parties have notice of the lien or pledge. Neither the
order nor any other instrument by which a pledge is created need be recorded.
new text end

new text begin Subd. 10. new text end

new text begin Bonds; purchase and cancellation. new text end

new text begin The commissioner, subject to agreements
with bondholders that may then exist, may, out of any money available for the purpose,
purchase bonds of the commissioner at a price not exceeding:
new text end

new text begin (1) if the bonds are then redeemable, the redemption price then applicable plus accrued
interest to the next interest payment date thereon; or
new text end

new text begin (2) if the bonds are not redeemable, the redemption price applicable on the first date
after the purchase upon which the bonds become subject to redemption plus accrued interest
to that date.
new text end

new text begin Subd. 11. new text end

new text begin State pledge against impairment of contracts. new text end

new text begin The state pledges and agrees
with the holders of any bonds that the state will not limit or alter the rights vested in the
commissioner to fulfill the terms of any agreements made with the bondholders or in any
way impair the rights and remedies of the holders until the bonds, together with interest on
them, with interest on any unpaid installments of interest, and all costs and expenses in
connection with any action or proceeding by or on behalf of the bondholders, are fully met
and discharged. The commissioner may include this pledge and agreement of the state in
any agreement with the holders of bonds issued under this section.
new text end

Sec. 2. new text begin PRIVATE WELL NITRATE MITIGATION ASSISTANCE; BOND SALE
AND APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $....... is appropriated from the private well mitigation
assistance bond proceeds account to the commissioner of agriculture for grants under
Minnesota Statutes, section 103H.301.
new text end

new text begin Subd. 2. new text end

new text begin Bond sale. new text end

new text begin To provide the money appropriated in subdivision 1, the
commissioner of management and budget shall sell and issue bonds of the state in an amount
up to $....... in the manner, upon the terms, and with the effect prescribed by Minnesota
Statutes, section 103H.301.
new text end

Sec. 3. new text begin EMERGENCY BOTTLED WATER; APPROPRIATIONS.
new text end

new text begin (a) $....... in fiscal year 2018 is appropriated from the fertilizer inspection account to the
commissioner of agriculture to provide bottled water to owners of private domestic wells
contaminated with nitrates eligible for assistance under Minnesota Statutes, section 103H.301.
new text end

new text begin (b) $....... in fiscal year 2018 is appropriated from the pesticide regulatory account to the
commissioner of agriculture to provide bottled water to owners of private domestic wells
contaminated by pesticides eligible for assistance under Minnesota Statutes, section
103H.301.
new text end