HF 159

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to political subdivisions; requiring a
referendum on pension deficit bonding; requiring draft
legislation for 2006 session; amending Minnesota
Statutes 2004, section 475.58, subdivision 1.

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

Section 1.

Minnesota Statutes 2004, 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 of taxes levied upon the increased value of property
within a district for the development of which the improvement
is undertaken, 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 taxes 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 such taxes within the district;

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

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

deleted text begin (9) deleted text end new text begin (8) new text end 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 EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005,
and applies to debt issued and sold on or after that date.
new text end

Sec. 2. new text begin REVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes must prepare legislation for
introduction at the beginning of the 2006 legislative session.
The proposed legislation must strike or repeal the authority in
each statute and law that allows a political subdivision of the
state to issue and sell general obligation bonds without an
election. The proposed legislation must be given to the chairs
of the house and senate committees with jurisdiction over local
government issues and taxes.
new text end