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HF 1298

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:47am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to public finance; providing terms and conditions relating to issuance of
obligations and financing of public improvements; modifying restrictions on mail
elections; providing tax credit and interest subsidy bonds; providing emergency
debt certificates; authorizing the issuance of local bonds; authorizing the cities of
Chisago City and Lindstrom to establish a joint venture, issue debt for use outside
of the jurisdiction, and share revenues; providing for the additional financing of
metropolitan area transit and paratransit capital expenditures; authorizing the
issuance of certain obligations; authorizing counties to make joint purchases of
energy and energy generation projects; authorizing Mountain Iron economic
development and Winona County economic authorities to form limited liability
companies; eliminating the maximum limit on state agricultural society's bonded
debt and the sunset on the authority to issue bonds and modifying its authorized
investments of debt service funds; extending sunset for special service and
housing improvement districts; modifying authority of municipalities to issue
bonds for certain postemployment benefits; appropriating money; amending
Minnesota Statutes 2008, sections 37.31, subdivisions 1, 7; 37.33, subdivision
3; 37.34; 126C.55, subdivision 4; 204B.46; 275.065, subdivision 6; 360.036,
subdivision 2; 366.095, subdivision 1; 373.01, subdivision 3; 373.40, subdivision
1; 373.47, subdivision 1; 373.48, subdivision 1, by adding a subdivision;
383B.117, subdivision 2; 410.32; 412.301; 428A.03, subdivision 1; 428A.08;
428A.09; 428A.10; 428A.101; 428A.21; 446A.086, by adding a subdivision;
469.005, subdivision 1; 469.034, subdivision 2; 469.153, subdivision 2;
471.191, subdivision 1; 473.1293, by adding a subdivision; 473.39, by adding
a subdivision; 474A.02, subdivisions 2, 14; 475.51, subdivision 4; 475.52,
subdivision 6; 475.58, subdivision 1; 475.67, subdivision 8; Laws 1971, chapter
773, sections 1, subdivision 2, as amended; 4, as amended; Laws 2008, chapter
366, article 6, section 46, subdivisions 1, 2; proposing coding for new law
in Minnesota Statutes, chapters 16A; 475; repealing Minnesota Statutes 2008,
section 37.31, subdivision 8; Laws 1998, chapter 407, article 8, section 12,
subdivision 4.

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

Section 1.

new text begin [16A.647] TAX CREDIT AND INTEREST SUBSIDY BONDS.
new text end

new text begin Subdivision 1. new text end

new text begin Authority to issue. new text end

new text begin When authorized by law to issue state general
obligation bonds, the commissioner may issue all or part of the bonds as tax credit bonds
or as interest subsidy bonds or a combination of the two.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Tax credit bonds" means bonds, the interest on which is includable in the
income of the owner of the bonds for federal income tax purposes, but for which the
owner is entitled to a federal tax credit.
new text end

new text begin (c) "Interest subsidy bonds" means bonds, the interest on which is includable in the
income of the owner of the bonds for federal income tax purposes, but for which the
issuer is entitled to federal interest subsidy payments based on a percentage of the interest
payable on the interest subsidy bonds.
new text end

new text begin Subd. 3. new text end

new text begin Method of sale. new text end

new text begin Notwithstanding the provisions of section 16A.641,
subdivision 4, the commissioner may sell any series of tax credit bonds or interest
subsidy bonds at negotiated sale upon the terms and conditions and the restrictions
the commissioner prescribes. The commissioner may contract for investment banking
and banking services only after receiving competitive proposals for the services. The
commissioner may enter into all contracts deemed necessary or desirable to accomplish
the sale in a cost-effective manner.
new text end

new text begin Subd. 4. new text end

new text begin Sinking fund. new text end

new text begin The commissioner's order authorizing the issuance of
interest subsidy bonds must establish a separate sinking fund account for the interest
subsidy bonds in the state bond fund. There is annually appropriated, as received, to each
interest subsidy bond account, in addition to amounts appropriated under section 16A.641,
the interest subsidy payments received from the federal government with respect to that
issue of interest subsidy bonds in that year.
new text end

new text begin Subd. 5. new text end

new text begin Sale. new text end

new text begin Tax credit bonds and interest subsidy bonds must be sold at a price
not less than 98 percent of their stated principal amount. No state trunk highway bond
may be sold for a price of less than par and accrued interest.
new text end

Sec. 2.

Minnesota Statutes 2008, section 37.31, subdivision 1, is amended to read:


Subdivision 1.

Bonding authority.

The society may issue negotiable bonds in
a principal amount that the society determines necessary to provide sufficient money
for achieving its purposes, including the payment of interest on bonds of the society,
the establishment of reserves to secure its bonds, the payment of fees to a third party
providing credit enhancement, and the payment of all other expenditures of the society
incident to and necessary or convenient to carry out its corporate purposes and powers.
Bonds of the society may be issued as bonds or notes or in any other form authorized by
law. deleted text begin The principal amount of bonds issued and outstanding under this section at any time
may not exceed $20,000,000, excluding bonds for which refunding bonds or crossover
refunding bonds have been issued.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2008, section 37.31, subdivision 7, is amended to read:


Subd. 7.

deleted text begin Approvaldeleted text end new text begin Notificationnew text end ; commissioner of finance.

deleted text begin Beforedeleted text end new text begin Within 30 days
after
new text end issuing new text begin and selling new text end bonds under this section, the society must deleted text begin obtain the approvaldeleted text end new text begin
notify
new text end , in writing, deleted text begin ofdeleted text end the commissioner of financenew text begin of the date of issuance, principal amount,
true interest cost, final maturity date of the issue, and credit rating as applicable
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2008, section 37.33, subdivision 3, is amended to read:


Subd. 3.

Investment.

Money in a debt service reserve fund not required for
immediate use may be invested in accordance with section deleted text begin 37.07deleted text end new text begin 37.34new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2008, section 37.34, is amended to read:


37.34 MONEY OF THE SOCIETY.

The society may contract with the holders of any of its bonds as to the custody,
collection, securing, investment, and payment of money of the society or money held in
trust or otherwise for the payment of bonds, and to carry out the contract. Money held in
trust or otherwise for the payment of bonds or in any way to secure bonds and deposits of
the money may be new text begin invested in accordance with chapter 118A and may be new text end secured in the
same manner as money of the society, and all banks and trust companies are authorized
to give security for the deposits.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2008, section 126C.55, subdivision 4, is amended to read:


Subd. 4.

Pledge of district's full faith and credit.

If, at the request of a school
district or intermediate school district, the state has paid part or all of the principal or
interest due on a district's debt obligation on a specific date, the pledge of the full faith and
credit and unlimited taxing powers of the school district or the member districts of the
intermediate district to repay the principal and interest due on those debt obligations shall
also, without an election or the requirement of a further authorization, become a pledge of
the full faith and credit and unlimited taxing powers of the school district or the member
districts of the intermediate district to repay to the state the amount paid, with interest.
Amounts paid by the state must be repaid in the order in which the state payments were
made.new text begin Whenever the state pays under this section interest on bonds for which the issuer is
entitled to federal interest subsidy payments, the state is subrogated to the issuer's rights to
any federal interest subsidy payments relating to the interest paid by the state, unless and
until the state has been reimbursed by the issuer in full.
new text end

Sec. 7.

Minnesota Statutes 2008, section 204B.46, is amended to read:


204B.46 MAIL ELECTIONS; QUESTIONS.

A county, municipality, or school district submitting questions to the voters at a
special election may conduct an election by mail with no polling place other than the office
of the auditor or clerk. No deleted text begin more than two questions may be submitted at a mail election
and no
deleted text end offices may be voted onnew text begin at a mail electionnew text end . Notice of the election must be given
to the county auditor at least 53 days prior to the election. This notice shall also fulfill
the requirements of Minnesota Rules, part 8210.3000. The special mail ballot procedures
must be posted at least six weeks prior to the election. No earlier than 20 or later than 14
days prior to the election, the auditor or clerk shall mail ballots by nonforwardable mail
to all voters registered in the county, municipality, or school district. Eligible voters not
registered at the time the ballots are mailed may apply for ballots pursuant to chapter 203B.

Sec. 8.

Minnesota Statutes 2008, section 275.065, subdivision 6, is amended to read:


Subd. 6.

Public hearing; adoption of budget and levy.

(a) For purposes of this
section, the following terms shall have the meanings given:

(1) "Initial hearing" means the first and primary hearing held to discuss the taxing
authority's proposed budget and proposed property tax levy for taxes payable in the
following year, or, for school districts, the current budget and the proposed property tax
levy for taxes payable in the following year.

(2) "Continuation hearing" means a hearing held to complete the initial hearing, if
the initial hearing is not completed on its scheduled date.

(3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final
property tax levy, and, in the case of taxing authorities other than school districts, the final
budget, for taxes payable in the following year.

(b) Between November 29 and December 20, the governing bodies of a city that has a
population over 500, county, metropolitan special taxing districts as defined in subdivision
3, paragraph (i), and regional library districts shall each hold an initial public hearing
to discuss and seek public comment on its final budget and property tax levy for taxes
payable in the following year, and the governing body of the school district shall hold an
initial public hearing to review its current budget and proposed property tax levy for taxes
payable in the following year. The metropolitan special taxing districts shall be required to
hold only a single joint initial public hearing, the location of which will be determined by
the affected metropolitan agencies. A city, county, metropolitan special taxing district as
defined in subdivision 3, paragraph (i), regional library district established under section
134.201, or school district is not required to hold a public hearing under this subdivision
unless its proposed property tax levy for taxes payable in the following year, as certified
under subdivision 1, has increased over its final property tax levy for taxes payable in the
current year by a percentage that is greater than the percentage increase in the implicit
price deflator for government consumption expenditures and gross investment for state
and local governments prepared by the Bureau of Economic Analysts of the United States
Department of Commerce for the 12-month period ending March 31 of the current year.

(c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than
Saturday. No initial hearing may be held on a Sunday.

(d) At the initial hearing under this subdivision, the percentage increase in property
taxes proposed by the taxing authority, if any, and the specific purposes for which property
tax revenues are being increased must be discussed. During the discussion, the governing
body shall hear comments regarding a proposed increase and explain the reasons for the
proposed increase. The public shall be allowed to speak and to ask questions. At the public
hearing, the school district must also provide and discuss information on the distribution
of its revenues by revenue source, and the distribution of its spending by program area.

(e) If the initial hearing is not completed on its scheduled date, the taxing authority
must announce, prior to adjournment of the hearing, the date, time, and place for the
continuation of the hearing. The continuation hearing must be held at least five business
days but no more than 14 business days after the initial hearing. A continuation hearing
may not be held later than December 20 except as provided in paragraphs (f) and (g).
A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than
Saturday. No continuation hearing may be held on a Sunday.

(f) The governing body of a county shall hold its initial hearing on the first Thursday
in December each year, and may hold additional initial hearings on other dates before
December 20 if necessary for the convenience of county residents. If the county needs a
continuation of its hearing, the continuation hearing shall be held on the third Tuesday
in December. If the third Tuesday in December falls on December 21, the county's
continuation hearing shall be held on Monday, December 20.

(g) The metropolitan special taxing districts shall hold a joint initial public hearing
on the first Wednesday of December. A continuation hearing, if necessary, shall be held on
the second Wednesday of December even if that second Wednesday is after December 10.

(h) The county auditor shall provide for the coordination of initial and continuation
hearing dates for all school districts and cities within the county to prevent conflicts under
clauses (i) and (j).

(i) By August 10, each school board and the board of the regional library district
shall certify to the county auditors of the counties in which the school district or regional
library district is located the dates on which it elects to hold its initial hearing and any
continuation hearing. If a school board or regional library district does not certify these
dates by August 10, the auditor will assign the initial and continuation hearing dates. The
dates elected or assigned must not conflict with the initial and continuation hearing dates
of the county or the metropolitan special taxing districts.

(j) By August 20, the county auditor shall notify the clerks of the cities within the
county of the dates on which school districts and regional library districts have elected to
hold their initial and continuation hearings. At the time a city certifies its proposed levy
under subdivision 1 it shall certify the dates on which it elects to hold its initial hearing and
any continuation hearing. Until September 15, the first and second Mondays of December
are reserved for the use of the cities. If a city does not certify its hearing dates by
September 15, the auditor shall assign the initial and continuation hearing dates. The dates
elected or assigned for the initial hearing must not conflict with the initial hearing dates
of the county, metropolitan special taxing districts, regional library districts, or school
districts within which the city is located. To the extent possible, the dates of the city's
continuation hearing should not conflict with the continuation hearing dates of the county,
metropolitan special taxing districts, regional library districts, or school districts within
which the city is located. This paragraph does not apply to cities of 500 population or less.

(k) The county initial hearing date and the city, metropolitan special taxing district,
regional library district, and school district initial hearing dates must be designated on
the notices required under subdivision 3. The continuation hearing dates need not be
stated on the notices.

(l) At a subsequent hearing, each county, school district, city over 500 population,
and metropolitan special taxing district may amend its proposed property tax levy
and must adopt a final property tax levy. Each county, city over 500 population, and
metropolitan special taxing district may also amend its proposed budget and must adopt a
final budget at the subsequent hearing. The final property tax levy must be adopted prior
to adopting the final budget. A school district is not required to adopt its final budget at the
subsequent hearing. The subsequent hearing of a taxing authority must be held on a date
subsequent to the date of the taxing authority's initial public hearing. If a continuation
hearing is held, the subsequent hearing must be held either immediately following the
continuation hearing or on a date subsequent to the continuation hearing. The subsequent
hearing may be held at a regularly scheduled board or council meeting or at a special
meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing
of a taxing authority does not have to be coordinated by the county auditor to prevent a
conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any
other taxing authority. All subsequent hearings must be held prior to five working days
after December 20 of the levy year. The date, time, and place of the subsequent hearing
must be announced at the initial public hearing or at the continuation hearing.

(m) The property tax levy certified under section 275.07 by a city of any population,
county, metropolitan special taxing district, regional library district, or school district
must not exceed the proposed levy determined under subdivision 1, except by an amount
up to the sum of the following amounts:

(1) the amount of a school district levy whose voters approved a referendum to
increase taxes under section 123B.63, subdivision 3, or 126C.17, subdivision 9, after
the proposed levy was certified;

(2) the amount of a city or county levy approved by the voters after the proposed
levy was certified;

(3) the amount of a levy to pay principal and interest on bonds approved by the
voters under section 475.58 after the proposed levy was certified;

(4) the amount of a levy to pay costs due to a natural disaster occurring after the
proposed levy was certified, if that amount is approved by the commissioner of revenue
under subdivision 6a;

(5) the amount of a levy to pay tort judgments against a taxing authority that become
final after the proposed levy was certified, if the amount is approved by the commissioner
of revenue under subdivision 6a;

(6) the amount of an increase in levy limits certified to the taxing authority by the
commissioner of education or the commissioner of revenue after the proposed levy was
certified; deleted text begin and
deleted text end

(7) the amount required under section 126C.55new text begin ; and
new text end

new text begin (8) the levy to pay emergency debt certificates under section 475.755 authorized and
issued after the proposed levy was certified
new text end .

(n) This subdivision does not apply to towns and special taxing districts other than
regional library districts and metropolitan special taxing districts.

(o) Notwithstanding the requirements of this section, the employer is required to
meet and negotiate over employee compensation as provided for in chapter 179A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2008, section 360.036, subdivision 2, is amended to read:


Subd. 2.

Issuance of bonds.

(a) Bonds to be issued by a municipality under sections
360.011 to 360.076, shall be authorized and issued in the manner and within the limitation
prescribed by laws or the charter of the municipality for the issuance and authorization of
bonds for public purposes generally, except as provided in paragraphs (b) and (c).

(b) No election is required to authorize the issuance of the bonds if:

(1) a board organized under section 360.042 recommends by a resolution adopted
by a vote of not less than 60 percent of its members the issuance of bonds, and the
bonds are authorized by a resolution of the governing body of each of the municipalities
acting jointly pursuant to section 360.042, adopted by a vote of not less than 60 percent
of its members; or

(2) new text begin the bonds are authorized by a resolution of the governing body of the
municipality, adopted by a vote of not less than 60 percent of its members; or
new text end

new text begin (3) new text end the bonds are being issued for the purpose of financing the costs of constructing,
enlarging, or improving airports and other air navigation facilities; and

(i) the governing body estimates that passenger facility charges and other revenues
pledged to the payment thereof will be at least 20 percent of the debt service payable
on the bonds in any year;

(ii) the project will be funded in part by a new text begin state or new text end federal grant for airport
development; and

(iii) the principal amount of the bonds issued under this clause does not exceed 25
percent of the amount of the new text begin state or new text end federal grant.

(c) If the bonds are general obligations of the municipality, the levy of taxes required
by section 475.61 to pay principal and interest on the bonds is not included in computing
or applying any levy limitation applicable to the municipality.

Sec. 10.

Minnesota Statutes 2008, section 366.095, subdivision 1, is amended to read:


Subdivision 1.

Certificates of indebtedness.

The town board may issue certificates
of indebtedness within the debt limits for a town purpose otherwise authorized by law.
The certificates shall be payable in not more than deleted text begin fivedeleted text end new text begin tennew text end years and be issued on the terms
and in the manner as the board may determine. If the amount of the certificates to be
issued exceeds 0.25 percent of the market value of the town, they shall not be issued for at
least ten days after publication in a newspaper of general circulation in the town of the
board's resolution determining to issue them. If within that time, a petition asking for an
election on the proposition signed by voters equal to ten percent of the number of voters
at the last regular town election is filed with the clerk, the certificates shall not be issued
until their issuance has been approved by a majority of the votes cast on the question at
a regular or special election. A tax levy shall be made to pay the principal and interest
on the certificates as in the case of bonds.

Sec. 11.

Minnesota Statutes 2008, section 373.01, subdivision 3, is amended to read:


Subd. 3.

Capital notes.

(a) A county board may, by resolution and without
referendum, issue capital notes subject to the county debt limit to purchase capital
equipment useful for county purposes that has an expected useful life at least equal to the
term of the notes. The notes shall be payable in not more than ten years and shall be
issued on terms and in a manner the board determines. A tax levy shall be made for
payment of the principal and interest on the notes, in accordance with section 475.61,
as in the case of bonds.

(b) For purposes of this subdivision, "capital equipment" means:

(1) public safety, ambulance, road construction or maintenance, deleted text begin anddeleted text end medical
equipmentnew text begin , and other capital equipmentnew text end ; and

(2) computer hardware and software, whether bundled with machinery or equipment
or unbundlednew text begin , together with application development services and training related to the
use of the computer hardware and software and fiber-optic cable or other means of voice
and data transmission among municipal buildings, provided that software, application,
and development services and training shall be deemed to have the same useful life as the
computer equipment to which they are related
new text end .

Sec. 12.

Minnesota Statutes 2008, section 373.40, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

For purposes of this section, the following terms have
the meanings given.

(a) "Bonds" means an obligation as defined under section 475.51.

(b) "Capital improvement" means acquisition or betterment of public lands,
buildings, or other improvements within the county for the purpose of a county
courthouse, administrative building, health or social service facility, correctional facility,
jail, law enforcement center, hospital, morgue, library, park, qualified indoor ice arena,
roads and bridges, new text begin public works facilities, fairgrounds buildings, fiber-optic cable or other
means of voice and data transmission among municipal buildings,
new text end and the acquisition
of development rights in the form of conservation easements under chapter 84C. An
improvement must have an expected useful life of five years or more to qualify. "Capital
improvement" does not include light rail transit or any activity related to it or a recreation
or sports facility building (such as, but not limited to, a gymnasium, ice arena, racquet
sports facility, swimming pool, exercise room or health spa), unless the building is part of
an outdoor park facility and is incidental to the primary purpose of outdoor recreation.

(c) "Metropolitan county" means a county located in the seven-county metropolitan
area as defined in section 473.121 or a county with a population of 90,000 or more.

(d) "Population" means the population established by the most recent of the
following (determined as of the date the resolution authorizing the bonds was adopted):

(1) the federal decennial census,

(2) a special census conducted under contract by the United States Bureau of the
Census, or

(3) a population estimate made either by the Metropolitan Council or by the state
demographer under section 4A.02.

(e) "Qualified indoor ice arena" means a facility that meets the requirements of
section 373.43.

(f) "Tax capacity" means total taxable market value, but does not include captured
market value.

Sec. 13.

Minnesota Statutes 2008, section 373.47, subdivision 1, is amended to read:


Subdivision 1.

Authority to incur debt.

Subject to prior approval by the Statewide
Radio Board under section 403.36, the governing body of a county may finance the cost of
designing, constructing, and acquiring public safety communication system infrastructure
and equipment for use on the statewide, shared public safety radio system by issuing:

(1) capital improvement bonds under section 373.40, as if the infrastructure and
equipment qualified as a "capital improvement" within the meaning of section 373.40,
subdivision 1
, paragraph (b)new text begin , bonds issued under this section are exempt from and shall
not be included in calculating the limitations in section 373.40, subdivision 4
new text end ; and

(2) capital notes under the provisions of section 373.01, subdivision 3, as if the
equipment qualified as "capital equipment" within the meaning of section 373.01,
subdivision 3
.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to bonds issued after May 22, 2002.
new text end

Sec. 14.

Minnesota Statutes 2008, section 373.48, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

For the purpose of this section, "project" means a facility
that generates electricity from renewable energy sources listed in section 216B.1691,
subdivision 1, paragraph (a)deleted text begin , clause (1)deleted text end .

Sec. 15.

Minnesota Statutes 2008, section 373.48, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Joint purchase of energy and acquisition of generation projects;
financing.
new text end

new text begin (a) A county may enter into agreements under section 471.59 with other
counties for joint purchase of energy or joint acquisition of interests in projects. A
county may annually levy an ad valorem tax for the purpose of paying the cost of energy
purchased or acquiring interests in projects in an amount not exceeding 0.015 percent of
the market value of taxable property in the county. A county that enters into a multiyear
agreement for purchase of energy or acquires an interest in a project, including C-BED
projects pursuant to section 216B.1612, subdivision 9, may finance the estimated cost of
the energy to be purchased during the term of the agreement or the cost to the county
of the interest in the project by the issuance of general obligation bonds of the county,
including clean renewable energy bonds, provided that the annual debt service on all
bonds issued under this section, together with the amounts to be paid by the county in any
year for the purchase of energy under agreements entered into under this section, must
not exceed the amount of taxes authorized by this section.
new text end

new text begin (b) An agreement entered into under section 471.59 as provided by this section
may provide that:
new text end

new text begin (1) each county shall issue bonds to pay their respective shares of the cost of the
projects;
new text end

new text begin (2) one of the counties shall issue bonds to pay the full costs of the project and that
the other participating counties shall levy the tax authorized under this subdivision and
pledge the collections of the tax to the county that issues the bonds; or
new text end

new text begin (3) the joint powers board shall issue revenue bonds to pay the full costs of
the project and that the participating counties shall levy the tax authorized under this
subdivision and pledge the collections of the tax to the joint powers entity for payment of
the revenue bonds.
new text end

new text begin (c) Bonds issued under this section may be issued without an election and shall not
constitute net debt of any participating county.
new text end

Sec. 16.

Minnesota Statutes 2008, section 383B.117, subdivision 2, is amended to read:


Subd. 2.

Equipment acquisition; capital notes.

The board may, by resolution and
without public referendum, issue capital notes within existing debt limits for the purpose
of purchasing ambulance and other medical equipment, road construction or maintenance
equipment, public safety equipment and other capital equipment having an expected useful
life at least equal to the term of the notes issued. The notes shall be payable in not more
than ten years and shall be issued on terms and in a manner as the board determines. The
total principal amount of the notes issued for any fiscal year shall not exceed one percent of
the total annual budget for that year and shall be issued solely for the purchases authorized
in this subdivision. A tax levy shall be made for the payment of the principal and interest
on such notes as in the case of bonds. For purposes of this subdivision, "equipment"
includes computer hardware and software, whether bundled with machinery or equipment
or unbundlednew text begin , together with application development services and training related to the
use of the computer hardware and software and fiber-optic cable or other means of voice
and data transmission among municipal buildings, provided that software, application,
and development services and training shall be deemed to have the same useful life as
the computer equipment to which they are related
new text end . For purposes of this subdivision, the
term "medical equipment" includes computer hardware and software and other intellectual
property for use in medical diagnosis, medical procedures, research, record keeping,
billing, and other hospital applications, together with application development services
and training related to the use of the computer hardware and software and other intellectual
property, all without regard to their useful life. For purposes of determining the amount
of capital notes which the county may issue in any year, the budget of the county and
Hennepin Healthcare System, Inc. shall be combined and the notes issuable under this
subdivision shall be in addition to obligations issuable under section 373.01, subdivision 3.

Sec. 17.

Minnesota Statutes 2008, section 410.32, is amended to read:


410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.

(a) Notwithstanding any contrary provision of other law or charter, a home rule
charter city may, by resolution and without public referendum, issue capital notes subject
to the city debt limit to purchase capital equipment.

(b) For purposes of this section, "capital equipment" means:

(1) public safety equipment, ambulance and other medical equipment, road
construction and maintenance equipment, and other capital equipment; and

(2) computer hardware and software, whether bundled with machinery or equipment
or unbundlednew text begin , together with application development services and training related to the
use of the computer hardware and software and fiber-optic cable or other means of voice
and data transmission among municipal buildings, provided that software, application,
and development services and training shall be deemed to have the same useful life as the
computer equipment to which they are related
new text end .

(c) The new text begin capital new text end equipment deleted text begin or softwaredeleted text end must have an expected useful life at least
as long as the term of the notes.

(d) The notes shall be payable in not more than ten years and be issued on terms and
in the manner the city determines. The total principal amount of the capital notes issued
in a fiscal year shall not exceed 0.03 percent of the market value of taxable property
in the city for that year.

(e) A tax levy shall be made for the payment of the principal and interest on the
notes, in accordance with section 475.61, as in the case of bonds.

(f) Notes issued under this section shall require an affirmative vote of two-thirds of
the governing body of the city.

(g) Notwithstanding a contrary provision of other law or charter, a home rule charter
city may also issue capital notes subject to its debt limit in the manner and subject to the
limitations applicable to statutory cities pursuant to section 412.301.

Sec. 18.

Minnesota Statutes 2008, section 412.301, is amended to read:


412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.

(a) The council may issue certificates of indebtedness or capital notes subject to the
city debt limits to purchase capital equipment.

(b) For purposes of this section, "capital equipment" means:

(1) public safety equipment, ambulance and other medical equipment, road
construction and maintenance equipment, and other capital equipment; and

(2) computer hardware and software, whether bundled with machinery or equipment
or unbundlednew text begin , together with application development services and training related to the
use of the computer hardware and software and fiber-optic cable or other means of voice
and data transmission among municipal buildings, provided that software, application,
and development services and training shall be deemed to have the same useful life as the
computer equipment to which they are related
new text end .

(c) The new text begin capital new text end equipment deleted text begin or softwaredeleted text end must have an expected useful life at least as
long as the terms of the certificates or notes.

(d) Such certificates or notes shall be payable in not more than ten years and shall be
issued on such terms and in such manner as the council may determine.

(e) If the amount of the certificates or notes to be issued to finance any such purchase
exceeds 0.25 percent of the market value of taxable property in the city, they shall not
be issued for at least ten days after publication in the official newspaper of a council
resolution determining to issue them; and if before the end of that time, a petition asking
for an election on the proposition signed by voters equal to ten percent of the number of
voters at the last regular municipal election is filed with the clerk, such certificates or notes
shall not be issued until the proposition of their issuance has been approved by a majority
of the votes cast on the question at a regular or special election.

(f) A tax levy shall be made for the payment of the principal and interest on such
certificates or notes, in accordance with section 475.61, as in the case of bonds.

Sec. 19.

Minnesota Statutes 2008, section 428A.03, subdivision 1, is amended to read:


Subdivision 1.

Hearing.

Service charges may be imposed by the city within the
special service district at a rate or amount sufficient to produce the revenues required to
provide special services in the district. To determine the appropriate rate for a service
charge based on net tax capacity, taxable property or net tax capacity must be determined
without regard to captured or original net tax capacity under section 469.177 or to the
distribution or contribution value under section 473F.08. Service charges may not be
imposed to finance a special service if the service is ordinarily provided by the city from
its general fund revenues unless the service is provided in the district at an increased level.
In that case, a service charge may be imposed only in the amount needed to pay for the
increased level of service. A service charge may not be imposed on the receipts from the
sale of intoxicating liquor, food, or lodging. Before the imposition of service charges in a
district, for each calendar year, a hearing must be held under section 428A.02 and notice
must be given and must be mailed to any new text begin owner, new text end individualnew text begin ,new text end or business organization
subject to a service charge. For purposes of this section, the notice shall also include:

(1) a statement that all interested persons will be given an opportunity to be heard at
the hearing regarding a proposed service charge;

(2) the estimated cost of improvements to be paid for in whole or in part by service
charges imposed under this section, the estimated cost of operating and maintaining
the improvements during the first year and upon completion of the improvements, the
proposed method and source of financing the improvements, and the annual cost of
operating and maintaining the improvements;

(3) the proposed rate or amount of the proposed service charge to be imposed in
the district during the calendar year and the nature and character of special services to
be rendered in the district during the calendar year in which the service charge is to be
collected; and

(4) a statement that the petition requirements of section 428A.08 have either been
met or do not apply to the proposed service charge.

Within six months of the public hearing, the city may adopt a resolution imposing
a service charge within the district not exceeding the amount or rate expressed in the
notice issued under this section.

Sec. 20.

Minnesota Statutes 2008, section 428A.08, is amended to read:


428A.08 PETITION REQUIRED.

No action may be taken under section 428A.02 new text begin or 428A.03, new text end unless owners of 25
percent or more of the land area of property that would be subject to service charges in the
proposed special service district andnew text begin either: (1)new text end owners of 25 percent or more of the net tax
capacity of property that would be subject to new text begin a proposed new text end service deleted text begin charges in the proposed
special service district
deleted text end new text begin charge, based on net tax capacity; or (2) owners, individuals, and
business organizations subject to 25 percent or more of a proposed service charge based
on other than net tax capacity
new text end file a petition requesting a public hearing on the proposed
action with the city clerk. deleted text begin No action may be taken under section 428A.03 to impose
a service charge based on net tax capacity unless owners of 25 percent or more of the
land area subject to a proposed service charge and owners of 25 percent or more of the
net tax capacity subject to a proposed service charge file a petition requesting a public
hearing on the proposed action with the city clerk. No action may be taken under section
428A.03 to impose any other type of service charge unless 25 percent or more of the
individual or business organizations subject to the proposed service charge file a petition
requesting a public hearing on the proposed action with the city clerk.
deleted text end If the boundaries of
a proposed district are changed or the land area or net tax capacity subject to a service
charge or the individuals or business organizations subject to a service charge are changed
after the public hearing, a petition meeting the requirements of this section must be filed
with the city clerk before the ordinance establishing the district or resolution imposing
the service charge may become effective.

Sec. 21.

Minnesota Statutes 2008, section 428A.09, is amended to read:


428A.09 VETO POWER OF OWNERS.

Subdivision 1.

Notice of right to file objections.

Except as provided in section
428A.10, the effective date of any ordinance or resolution adopted under sections 428A.02
and 428A.03 must be at least 45 days after it is adopted. Within five days after adoption
of the ordinance or resolution, a summary of the ordinance or resolution must be mailed
to the owner of each parcel included in the special service district and any individual or
business organization subject to a service charge in the same manner that notice is mailed
under section 428A.02. The mailing must include a notice that owners subject to a service
charge based on net tax capacity and new text begin owners, new text end individualsnew text begin ,new text end and business organizations
subject to a service charge imposed on another basis have a right to veto the ordinance
or resolution by filing the required number of objections with the city clerk before the
effective date of the ordinance or resolution and that a copy of the ordinance or resolution
is on file with the city clerk for public inspection.

Subd. 2.

Requirements for veto.

If owners of 35 percent or more of the land
area in the district subject to the service charge based on net tax capacity or owners
deleted text begin ofdeleted text end new text begin , individuals, and business organizations subject to new text end 35 percent or more of the deleted text begin net tax
capacity in the district subject to the service charge based on net tax capacity
deleted text end new text begin service
charges to be imposed in the district,
new text end file an objection to the ordinance adopted by the city
under section 428A.02 with the city clerk before the effective date of the ordinance, the
ordinance does not become effective. If owners of 35 percent or more of the land area
subject to the service charge based on net tax capacity or owners of 35 percent or more
of the net tax capacity subject to the service charge based on net tax capacity file an
objection to the resolution adopted imposing a service charge based on net tax capacity
under section 428A.03 with the city clerk before the effective date of the resolution, the
resolution does not become effective. If deleted text begin 35 percent or more ofdeleted text end new text begin owners,new text end individualsnew text begin ,new text end and
business organizations subject to deleted text begin adeleted text end new text begin 35 percent or more of the new text end service deleted text begin chargedeleted text end new text begin charges to
be imposed in the district
new text end file an objection to the resolution adopted imposing a service
charge on a basis other than net tax capacity under section 428A.03 with the city clerk
before the effective date of the resolution, the resolution does not become effective. In the
event of a veto, no district shall be established during the current calendar year and until a
petition meeting the qualifications set forth in this subdivision for a veto has been filed.

Sec. 22.

Minnesota Statutes 2008, section 428A.10, is amended to read:


428A.10 EXCLUSION FROM PETITION REQUIREMENTS AND VETO
POWER.

The petition requirements of section 428A.08 deleted text begin anddeleted text end new text begin do not apply to second or
subsequent years' action to impose service charges under section 428A.03.
new text end The right of
owners and those subject to a service charge to veto a resolution in section 428A.09
deleted text begin dodeleted text end new text begin doesnew text end not apply to second or subsequent years' applications of a service charge that
is authorized to be in effect for more than one year under a resolution that deleted text begin has met the
petition requirements of section 428A.08 and which
deleted text end has not been vetoed under section
428A.09 for the first year's application. A resolution imposing a service charge for more
than one year must not be adopted unless the notice of public hearing required by section
428A.03 and the notice mailed with the adopted resolution under section 428A.09 include
the following information:

(1) in the case of improvements, the maximum service charge to be imposed in any
year and the maximum number of years the service deleted text begin chargesdeleted text end new text begin charge isnew text end imposed to pay
for the improvement; and

(2) in the case of operating and maintenance services, the maximum service charge
to be imposed in any year and the maximum number of years, or a statement that the
service charge will be imposed for an indefinite number of years, the service charges will
be imposed to pay for operation and maintenance services.

The resolution may provide that the maximum service charge to be imposed in any
year will increase or decrease from the maximum amount authorized in the preceding
year based on an indicator of increased cost or a percentage amount established by the
resolution.

Sec. 23.

Minnesota Statutes 2008, section 428A.101, is amended to read:


428A.101 DEADLINE FOR SPECIAL SERVICE DISTRICT UNDER
GENERAL LAW.

The establishment of a new special service district after June 30, deleted text begin 2009deleted text end new text begin 2013new text end , requires
enactment of a special law authorizing the establishment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 24.

Minnesota Statutes 2008, section 428A.21, is amended to read:


428A.21 DEADLINE FOR HOUSING IMPROVEMENT DISTRICTS UNDER
GENERAL LAW.

The establishment of a new housing improvement area after June 30, deleted text begin 2009deleted text end new text begin 2012new text end ,
requires enactment of a special law authorizing the establishment of the area.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 25.

Minnesota Statutes 2008, section 446A.086, is amended by adding a
subdivision to read:


new text begin Subd. 12. new text end

new text begin Federal interest subsidy payments. new text end

new text begin Whenever the state pays under
this section interest on bonds for which the issuer is entitled to federal interest subsidy
payments, the state is subrogated to the issuer's rights to any federal interest subsidy
payments relating to the interest paid by the state, unless and until the state has been
reimbursed by the issuer in full.
new text end

Sec. 26.

Minnesota Statutes 2008, section 469.005, subdivision 1, is amended to read:


Subdivision 1.

County and multicounty authorities.

The area of operation of a
county authority shall include all of the county for which it is created, and in case of
a multicounty authority, it shall include all of the political subdivisions for which the
multicounty authority is created; provided, that a county authority or a multicounty
authority shall not undertake any project within the boundaries of any city which has not
empowered the authority to function therein as provided in section 469.004 unless a
resolution has been adopted by the governing body of the citydeleted text begin , and by any authority which
has been established in the city,
deleted text end declaring that there is a need for the county or multicounty
authority to exercise its powers in the city. A resolution is not required for the operation of
a Section 8 program or a public housing scattered site project.

Sec. 27.

Minnesota Statutes 2008, section 469.034, subdivision 2, is amended to read:


Subd. 2.

General obligation revenue bonds.

(a) An authority may pledge the
general obligation of the general jurisdiction governmental unit as additional security for
bonds payable from income or revenues of the project or the authority. The authority
must find that the pledged revenues will equal or exceed 110 percent of the principal and
interest due on the bonds for each year. The proceeds of the bonds must be used for a
qualified housing development project or projects. The obligations must be issued and
sold in the manner and following the procedures provided by chapter 475, except the
obligations are not subject to approval by the electors, and the maturities may extend to
not more than 35 years for obligations sold to finance housing for the elderly and 40 years
for other obligations issued under this subdivision. The authority is the municipality for
purposes of chapter 475.

(b) The principal amount of the issue must be approved by the governing body of
the general jurisdiction governmental unit whose general obligation is pledged. Public
hearings must be held on issuance of the obligations by both the authority and the general
jurisdiction governmental unit. The hearings must be held at least 15 days, but not more
than 120 days, before the sale of the obligations.

(c) The maximum amount of general obligation bonds that may be issued and
outstanding under this section equals the greater of (1) one-half of one percent of
the taxable market value of the general jurisdiction governmental unit whose general
obligation is pledged, or (2) $3,000,000. In the case of county or multicounty general
obligation bonds, the outstanding general obligation bonds of all cities in the county
or counties issued under this subdivision must be added in calculating the limit under
clause (1).

(d) "General jurisdiction governmental unit" means the city in which the housing
development project is located. In the case of a county or multicounty authority, the
county or counties may act as the general jurisdiction governmental unit. In the case of
a multicounty authority, the pledge of the general obligation is a pledge of a tax on the
taxable property in each of the counties.

(e) "Qualified housing development project" means a housing development project
providing housing either for the elderly or for individuals and families with incomes not
greater than 80 percent of the median family income as estimated by the United States
Department of Housing and Urban Development for the standard metropolitan statistical
area or the nonmetropolitan county in which the project is located. The project must be
owned for the term of the bonds either by the authority or by a limited partnership or other
entity in which the authority or another entity under the sole control of the authority is the
sole general partner and the partnership or other entity must receive (1) an allocation from
the Department of Finance or an entitlement issuer of tax-exempt bonding authority for
the project and a preliminary determination by the Minnesota Housing Finance Agency
or the applicable suballocator of tax credits that the project will qualify for four percent
low-income housing tax credits or (2) a reservation of nine percent low-income housing
tax credits from the Minnesota Housing Finance Agency or a suballocator of tax credits
for the project. A qualified housing development project may admit nonelderly individuals
and families with higher incomes if:

(1) three years have passed since initial occupancy;

(2) the authority finds the project is experiencing unanticipated vacancies resulting in
insufficient revenues, because of changes in population or other unforeseen circumstances
that occurred after the initial finding of adequate revenues; and

(3) the authority finds a tax levy or payment from general assets of the general
jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher
income individuals or families are not admitted.

new text begin (f) The authority may issue bonds to refund bonds issued under this subdivision in
accordance with section 475.67. The finding of the adequacy of pledged revenues required
by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the
issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
after July 1, 1992.
new text end

Sec. 28.

Minnesota Statutes 2008, section 469.153, subdivision 2, is amended to read:


Subd. 2.

Project.

(a) "Project" means (1) any properties, real or personal, used
or useful in connection with a revenue producing enterprise, or any combination of
two or more such enterprises engaged or to be engaged in generating, transmitting, or
distributing electricity, assembling, fabricating, manufacturing, mixing, processing,
storing, warehousing, or distributing any products of agriculture, forestry, mining, or
manufacture, or in research and development activity in this fieldnew text begin , or in the manufacturing,
creation, or production of intangible property, including any patent, copyright, formula,
process, design, know how, format, or other similar item
new text end ; (2) any properties, real or
personal, used or useful in the abatement or control of noise, air, or water pollution, or in
the disposal of solid wastes, in connection with a revenue producing enterprise, or any
combination of two or more such enterprises engaged or to be engaged in any business
or industry; (3) any properties, real or personal, used or useful in connection with the
business of telephonic communications, conducted or to be conducted by a telephone
company, including toll lines, poles, cables, switching, and other electronic equipment
and administrative, data processing, garage, and research and development facilities;
(4) any properties, real or personal, used or useful in connection with a district heating
system, consisting of the use of one or more energy conversion facilities to produce hot
water or steam for distribution to homes and businesses, including cogeneration facilities,
distribution lines, service facilities, and retrofit facilities for modifying the user's heating
or water system to use the heat energy converted from the steam or hot water.

(b) "Project" also includes any properties, real or personal, used or useful in
connection with a revenue producing enterprise, or any combination of two or more
such enterprises engaged in any business.

(c) "Project" also includes any properties, real or personal, used or useful for the
promotion of tourism in the state. Properties may include hotels, motels, lodges, resorts,
recreational facilities of the type that may be acquired under section 471.191, and related
facilities.

(d) "Project" also includes any properties, real or personal, used or useful in
connection with a revenue producing enterprise, whether or not operated for profit,
engaged in providing health care services, including hospitals, nursing homes, and related
medical facilities.

(e) "Project" does not include any property to be sold or to be affixed to or consumed
in the production of property for sale, and does not include any housing facility to be
rented or used as a permanent residence.

(f) "Project" also means the activities of any revenue producing enterprise involving
the construction, fabrication, sale, or leasing of equipment or products to be used in
gathering, processing, generating, transmitting, or distributing solar, wind, geothermal,
biomass, agricultural or forestry energy crops, or other alternative energy sources for
use by any person or any residential, commercial, industrial, or governmental entity in
heating, cooling, or otherwise providing energy for a facility owned or operated by that
person or entity.

(g) "Project" also includes any properties, real or personal, used or useful in
connection with a county jail, county regional jail, community corrections facilities
authorized by chapter 401, or other law enforcement facilities, the plans for which are
approved by the commissioner of corrections; provided that the provisions of section
469.155, subdivisions 7 and 13, do not apply to those projects.

(h) "Project" also includes any real properties used or useful in furtherance of the
purpose and policy of section 469.141.

(i) "Project" also includes related facilities as defined by section 471A.02,
subdivision 11
.

(j) "Project" also includes an undertaking to purchase the obligations of local
governments located in whole or in part within the boundaries of the municipality that are
issued or to be issued for public purposes.

Sec. 29.

Minnesota Statutes 2008, section 471.191, subdivision 1, is amended to read:


Subdivision 1.

Lease to nonprofit.

Any city operating a program of public
recreation and playgrounds pursuant to sections 471.15 to 471.19 may acquire or lease,
equip, and maintain land, buildings, and other recreational facilities, including, but
without limitation, outdoor or indoor swimming pools, skating rinks and arenas, athletic
fields, golf courses, marinas, concert halls, museums, and facilities for other kinds of
athletic or cultural participation, contests, new text begin conventions, conferences, new text end and exhibitions,
together with related automobile parking facilities as defined in section 459.14, and may
expend funds for the operation of such program and borrow and expend funds for capital
costs thereof pursuant to the provisions of this section. A school district operating a
program of public recreation and playgrounds has the rights provided in this section. Any
facilities to be operated by a nonprofit corporation, as contemplated in section 471.16,
may be leased to the corporation upon such rentals and for such term, not exceeding 30
years, and subject to such other provisions as may be agreed; including but not limited to
provisions (a) permitting the lessee, subject to whatever conditions are stated, to provide
for the construction and equipment of the facilities by any means available to it and in the
manner determined by it, without advertisement for bids as required for other municipal
facilities, and (b) granting the lessee the option to renew the lease upon such conditions
and rentals, or to purchase the facilities at such price, as may be agreed; provided that (c)
any such lease shall require the lessee to pay net rentals sufficient to pay the principal,
interest, redemption premiums, and other expenses when due with respect to all city
bonds issued for the acquisition or betterment of the facilities, less such amount of taxes
and special assessments, if any, as may become payable in any year of the term of the
lease, on the land, building, or other facilities leased, and (d) no option shall be granted
to purchase the facilities at any time at a price less than the amount required to pay all
principal and interest to become due on such bonds to the earliest date or dates on which
they may be paid and redeemed, and all redemption premiums and other expenses of
such payment and redemption.

Sec. 30.

Minnesota Statutes 2008, section 473.1293, is amended by adding a
subdivision to read:


new text begin Subd. 6. new text end

new text begin Renewable energy; transit or wastewater facilities. new text end

new text begin For purposes of
providing a source of renewable energy for its transit or wastewater facilities, the council
may exercise the powers of a county under section 373.48; provided that funding for such
purposes shall be from the proceeds of bonds issued for transit or wastewater purposes
under section 473.39 or 473.541.
new text end

Sec. 31.

Minnesota Statutes 2008, section 473.39, is amended by adding a subdivision
to read:


new text begin Subd. 1o. new text end

new text begin Obligations. new text end

new text begin After July 1, 2009, in addition to other authority in this
section, the council may issue certificates of indebtedness, bonds, or other obligations
under this section in an amount not exceeding $34,200,000 for capital expenditures as
prescribed in the council's regional transit master plan and transit capital improvement
program and for related costs, including the costs of issuance and sale of the obligations.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies to the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 32.

Minnesota Statutes 2008, section 474A.02, subdivision 2, is amended to read:


Subd. 2.

Annual volume cap.

"Annual volume cap" means the aggregate dollar
amount of obligations new text begin constituting "private activity bonds" under federal tax law and
new text end bearing interest excluded from gross income for purposes of federal income taxation
which, under the provisions of federal tax law, may be issued in one year by issuers.new text begin
Employees of the department shall handle the volume cap allocations for obligations
permitted under the federal American Recovery and Reinvestment Act of 2009, whether
taxable or tax-exempt, in accordance with orders of the commissioner.
new text end

Sec. 33.

Minnesota Statutes 2008, section 474A.02, subdivision 14, is amended to read:


Subd. 14.

Manufacturing project.

"Manufacturing project" means any facility
which is used in the manufacturing or production of tangible personal property,
including the processing resulting in a change in the condition of the propertynew text begin , or in the
manufacturing, creation, or production of intangible property, including any patent,
copyright, formula, process, design, know how, format, or other similar item
new text end .

Sec. 34.

Minnesota Statutes 2008, section 475.51, subdivision 4, is amended to read:


Subd. 4.

Net debt.

"Net debt" means the amount remaining after deducting from its
gross debt the amount of current revenues which are applicable within the current fiscal
year to the payment of any debt and the aggregate of the principal of the following:

(1) Obligations issued for improvements which are payable wholly or partly from the
proceeds of special assessments levied upon property specially benefited thereby, including
those which are general obligations of the municipality issuing them, if the municipality is
entitled to reimbursement in whole or in part from the proceeds of the special assessments.

(2) Warrants or orders having no definite or fixed maturity.

(3) Obligations payable wholly from the income from revenue producing
conveniences.

(4) Obligations issued to create or maintain a permanent improvement revolving
fund.

(5) Obligations issued for the acquisition, and betterment of public waterworks
systems, and public lighting, heating or power systems, and of any combination thereof or
for any other public convenience from which a revenue is or may be derived.

(6) Debt service loans and capital loans made to a school district under the provisions
of sections 126C.68 and 126C.69.

(7) Amount of all money and the face value of all securities held as a debt service
fund for the extinguishment of obligations other than those deductible under this
subdivision.

(8) Obligations to repay loans made under section 216C.37.

(9) Obligations to repay loans made from money received from litigation or
settlement of alleged violations of federal petroleum pricing regulations.

(10) Obligations issued to pay pension fund deleted text begin or other postemployment benefitdeleted text end
liabilities under section 475.52, subdivision 6, or any charter authority.

(11) Obligations issued to pay judgments against the municipality under section
475.52, subdivision 6, or any charter authority.

new text begin (12) Obligations issued by a school district to pay other postemployment benefits.
new text end

deleted text begin (12)deleted text end new text begin (13)new text end All other obligations which under the provisions of law authorizing their
issuance are not to be included in computing the net debt of the municipality.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for obligations sold after August
1, 2009.
new text end

Sec. 35.

Minnesota Statutes 2008, section 475.52, subdivision 6, is amended to read:


Subd. 6.

Certain purposes.

Any municipality may issue bonds for paying
judgments against it; for refunding outstanding bonds; for funding floating indebtedness;
deleted text begin for funding actuarial liabilities to pay postemployment benefits to employees or officers
after their termination of service;
deleted text end or for funding all or part of the municipality's current
and future unfunded liability for a pension or retirement fund or plan referred to in section
356.20, subdivision 2, as those liabilities are most recently computed pursuant to sections
356.215 and 356.216. The board of trustees or directors of a pension fund or relief
association referred to in section 69.77 or chapter 422A must consent and must be a party
to any contract made under this section with respect to the fund held by it for the benefit of
and in trust for its members. new text begin A school district may issue bonds to pay postemployment
benefits to employees or officers after their termination of service.
new text end For purposes of this
section, the term "postemployment benefits" means benefits giving rise to a liability under
Statement No. 45 of the Governmental Accounting Standards Board.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for obligations sold after August
1, 2009.
new text end

Sec. 36.

Minnesota Statutes 2008, section 475.58, subdivision 1, is amended to read:


Subdivision 1.

Approval by electors; exceptions.

Obligations authorized by law or
charter may be issued by any municipality upon obtaining the approval of a majority of
the electors voting on the question of issuing the obligations, but an election shall not be
required to authorize obligations issued:

(1) to pay any unpaid judgment against the municipality;

(2) for refunding obligations;

(3) for an improvement or improvement program, which obligation is payable wholly
or partly from the proceeds of special assessments levied upon property specially benefited
by the improvement or by an improvement within the improvement program, or from tax
increments, as defined in section 469.174, subdivision 25, including obligations which are
the general obligations of the municipality, if the municipality is entitled to reimbursement
in whole or in part from the proceeds of such special assessments or tax increments and
not less than 20 percent of the cost of the improvement or the improvement program is to
be assessed against benefited property or is to be paid from the proceeds of federal grant
funds or a combination thereof, or is estimated to be received from tax increments;

(4) payable wholly from the income of revenue producing conveniences;

(5) under the provisions of a home rule charter which permits the issuance of
obligations of the municipality without election;

(6) under the provisions of a law which permits the issuance of obligations of a
municipality without an election;

(7) to fund pension or retirement fund deleted text begin or postemployment benefitdeleted text end liabilities pursuant
to section 475.52, subdivision 6;

(8) under a capital improvement plan under section 373.40; deleted text begin anddeleted text end

(9) under sections 469.1813 to 469.1815 (property tax abatement authority bonds), if
the proceeds of the bonds are not used for a purpose prohibited under section 469.176,
subdivision 4g
, paragraph (b)new text begin ; and
new text end

new text begin (10) under section 475.755new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except that the changes made to clause (7) are effective for obligations sold after August
1, 2009.
new text end

Sec. 37.

Minnesota Statutes 2008, section 475.67, subdivision 8, is amended to read:


Subd. 8.

Escrow account securities.

Securities purchased for the escrow account
shall be limited to:

(a) general obligations of the United States, securities whose principal and interest
payments are guaranteed by the United States, and securities issued by the following
agencies of the United States: Banks for Cooperatives, Federal Home Loan Banks,
Federal Intermediate Credit Banks, Federal Land Banks, and the Federal National
Mortgage Association; or

(b) obligations issued or guaranteed by any state or any political subdivision of a
state, which at the date of purchase are rated new text begin in new text end the highest or the next highest rating
deleted text begin givendeleted text end new text begin category new text end by Standard and Poor's Corporation, Moody's Investors Service, or a
similar nationally recognized rating agency, but not less than the rating on the refunded
bonds immediately prior to the refunding.

new text begin "Rating category," as used in this subdivision, means a generic securities rating
category, without regard in the case of a long-term rating category to any refinement or
gradation of such long-term rating category by a numerical modifier or otherwise.
new text end

Sec. 38.

new text begin [475.755] EMERGENCY DEBT CERTIFICATES.
new text end

new text begin (a) If at any time during a fiscal year the receipts of a local government are
reasonably expected to be reduced below the amount provided in the local government's
budget when the final property tax levy to be collected during the fiscal year was certified
and the receipts are insufficient to meet the expenses incurred or to be incurred during the
fiscal year, the governing body of the local government may authorize and sell certificates
of indebtedness to mature within two years or less from the end of the fiscal year in which
the certificates are issued. The maximum principal amount of the certificates that it may
issue in a fiscal year is limited to the expected reduction in receipts plus the cost of
issuance. The certificates may be issued in the manner and on the terms the governing
body determines by resolution.
new text end

new text begin (b) The governing body of the local government shall levy taxes for the payment of
principal and interest on the certificates in accordance with section 475.61.
new text end

new text begin (c) The certificates are not to be included in the net debt of the issuing local
government.
new text end

new text begin (d) To the extent that a local government issues certificates under this section to fund
an unallotment or other reduction in its state aid, the local government may not use a
special levy for the aid reduction under section 275.70, subdivision 5, clause (22), or a
similar or successor provision. This provision does not affect the status of the levy under
section 475.61 to pay the certificates as a levy that is not subject to levy limits.
new text end

new text begin (e) For purposes of this section, the following terms have the meanings given:
new text end

new text begin (1) "Local government" means a statutory or home rule charter city, a town, or
a county.
new text end

new text begin (2) "Receipts" includes the following amounts scheduled to be received by the
local government for the fiscal year from:
new text end

new text begin (i) taxes;
new text end

new text begin (ii) aid payments previously certified by the state to be paid to the local government;
new text end

new text begin (iii) state reimbursement payments for property tax credits; and
new text end

new text begin (iv) any other source.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 39.

Laws 1971, chapter 773, section 1, subdivision 2, as amended by Laws 1974,
chapter 351, section 5, Laws 1976, chapter 234, sections 1 and 7, Laws 1978, chapter 788,
section 1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, Laws
1988, chapter 513, section 1, Laws 1992, chapter 511, article 9, section 23, Laws 1998,
chapter 389, article 3, section 27, and Laws 2002, chapter 390, section 23, is amended to
read:


Subd. 2. deleted text begin Fordeleted text end new text begin Innew text end each deleted text begin of the years 2003 to 2013deleted text end new text begin yearnew text end , the city of St. Paul is authorized
to issue bonds in the aggregate principal amount of $20,000,000 deleted text begin for each yeardeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the city of St.
Paul with the requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 40.

Laws 1971, chapter 773, section 4, as amended by Laws 1976, chapter 234,
section 2, is amended to read:


Sec. 4. No proceeds of any bonds issued pursuant to section 1 hereof shall be
expended for the construction or equipment of any portion of the St. Paul auditorium or
civic center connected thereto; nor shall any such proceeds be expended for the acquisition
or betterment of the building known as the Lowry Medical Arts Annex. All bonds issued
under this act shall mature at any time or times within tennew text begin , or for bonds for public
buildings or parking structures 30,
new text end years from the date of issue.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the city of St.
Paul with the requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 41.

Laws 2008, chapter 366, article 6, section 46, subdivision 1, is amended to
read:


Subdivision 1.

Authorized.

Notwithstanding the contiguity requirement in
Minnesota Statutes, section 447.31, subdivision 2, any two or more of the following cities
and towns in St. Louis County may establish by resolution of their respective governing
bodies the White Community Hospital Districtnew text begin or its successornew text end : the cities of Aurora,
Biwabik, and Hoyt Lakes, and the towns of Biwabik, White, and Colvin. The proposed
resolution to establish the hospital district must be published and is subject to referendum
as provided in section 447.31, subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
without local approval under Minnesota Statutes, section 645.023, subdivision 1,
paragraph (a), for taxes levied in 2009, payable in 2010, and thereafter.
new text end

Sec. 42.

Laws 2008, chapter 366, article 6, section 46, subdivision 2, is amended to
read:


Subd. 2.

Powers; may make grants.

(a) Except as otherwise provided in this
section, the White Community Hospital District new text begin or its successor new text end shall be organized and
have the powers and duties provided in Minnesota Statutes, sections 447.31, except
subdivisions 2, 5, and 6; 447.32, subdivisions 5, 7, and 9; 447.345; 447.37; and 447.38.

(b) The hospital district may levy taxes as provided in this section to provide funding
to make grants to the White Community Hospital new text begin or its successor new text end and any affiliated health
care facility or provider for any purpose authorized for hospital districts in Minnesota
Statutes, sections 447.31 to 447.38, except 447.331. A grant must not be made under
this section until the governing body of the White Community Hospital, and any of its
affiliated health care facilities or providers receiving a grant, have entered into a written
agreement with the hospital district board stating that the governing body will comply
with and is subject to all provisions of the Minnesota open meeting law in Minnesota
Statutes, chapter 13D.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
without local approval under Minnesota Statutes, section 645.023, subdivision 1,
paragraph (a), for taxes levied in 2009, payable in 2010, and thereafter.
new text end

Sec. 43. new text begin ST. PAUL PORT AUTHORITY CREDIT.
new text end

new text begin Notwithstanding Minnesota Statutes, section 474A.061, subdivision 4, the
commissioner of finance shall apply the $31,800 deposit paid in 2008 for a proposed issue
of $1,590,000 in tax exempt bonds by the St. Paul Port Authority for District Cooling
St. Paul, Inc. to an application for an allocation of tax exempt bonds by the St. Paul Port
Authority for the same project.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and expires January 1, 2011.
new text end

Sec. 44. new text begin CHISAGO CITY AND LINDSTROM JOINT VENTURE.
new text end

new text begin Any two or more of the cities of Chisago City and Lindstrom, their economic
development authorities, housing and redevelopment authorities, and the county of
Chisago may enter into a joint powers agreement to acquire and develop or redevelop a
business park in the city of Chisago City or Lindstrom. Any party to the agreement may
spend money or issue debt for all or a part of the project, regardless of whether the project
is located within its corporate boundaries. Issuance of debt under this section is subject to
Minnesota Statutes, chapter 475, except that an election is not required. The agreement
may provide for the parties to share revenues from the project. Any party to the agreement
may levy taxes or spend its funds, as otherwise permitted by law, to pay for the project,
including debt issued to finance the project.
new text end

new text begin If the project is included in a tax increment financing district, each city and authority
that is a party to the agreement may treat the tax increment financing district as being
located within its corporate boundaries for purposes of the authority under the tax
increment financing act, Minnesota Statutes, sections 469.174 to 469.1799, to spend
increments or issue bonds for the project.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 45. new text begin MOUNTAIN IRON ECONOMIC DEVELOPMENT AUTHORITY;
WIND ENERGY PROJECT.
new text end

new text begin (a) The Mountain Iron economic development authority may form or become a
member of a limited liability company organized under Minnesota Statutes, chapter 322B,
for the purpose of developing a community-based energy development project pursuant
to Minnesota Statutes, section 216B.1612. A limited liability company formed or joined
under this section is subject to the open meeting requirements established in Minnesota
Statutes, chapter 13D. A project authorized by this section may not sell, transmit, or
distribute the electrical energy at retail or provide for end use of the electricity to an
off-site facility of the economic development corporation or the limited liability company.
Nothing in this section modifies the exclusive service territories or exclusive right to serve
as provided in Minnesota Statutes, sections 216B.37 to 216B.43.
new text end

new text begin (b) The authority may acquire a leasehold interest in property outside its corporate
boundaries for the purpose of developing a community-based energy development project
as provided in Minnesota Statutes, section 216B.1612.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the city of Mountain
Iron and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 46. new text begin WINONA COUNTY ECONOMIC DEVELOPMENT AUTHORITY;
WIND ENERGY PROJECT.
new text end

new text begin (a) The Winona County economic development authority may form or become a
member of a limited liability company organized under Minnesota Statutes, chapter 322B,
for the purpose of developing a community-based energy development project pursuant
to Minnesota Statutes, section 216B.1612. A limited liability company formed or joined
under this section is subject to the open meeting requirements established in Minnesota
Statutes, chapter 13D. A project authorized by this section may not sell, transmit, or
distribute the electrical energy at retail or provide for end use of the electrical energy to an
off-site facility of the economic development authority or the limited liability company.
Nothing in this section modifies the exclusive service territories or exclusive right to serve
as provided in Minnesota Statutes, sections 216B.37 to 216B.43.
new text end

new text begin (b) The authority may acquire a leasehold interest in property outside its corporate
boundaries for the purpose of developing a community-based energy development project
as provided in Minnesota Statutes, section 216B.1612.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the county of Winona
and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
new text end

Sec. 47. new text begin TEMPORARY CARRYFORWARD EXTENSION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 474A.04, subdivision 1a, bonding
authority allocated to an entitlement issuer in 2008, except the bonding authority allocated
in Laws 2008, chapter 366, article 5, section 38, or 2009, that an entitlement issuer carries
forward under federal tax law that is not permanently issued or for which the governing
body of the entitlement issuer has not enacted a resolution electing to use the authority for
mortgage credit certificates and has not provided a notice of issue to the commissioner of
finance before 4:30 p.m. on the last business day in December 2011 must be deducted
from the entitlement allocation for that entitlement issuer in 2012.
new text end

Sec. 48. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 37.31, subdivision 8, new text end new text begin and new text end new text begin Laws 1998, chapter 407,
article 8, section 12, subdivision 4,
new text end new text begin are repealed.
new text end

Sec. 49. new text begin EFFECTIVE DATE.
new text end

new text begin Unless otherwise provided, the sections of this act are effective the day following
final enactment.
new text end