HF 2127

1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to public administration; imposing and 
  1.3             modifying conditions and limitations on the use of 
  1.4             public debt; providing for the Dakota county community 
  1.5             development agency and the Cuyuna Range joint powers 
  1.6             economic development authority; reenacting certain 
  1.7             provisions relating to taxes, abatements, and tax 
  1.8             increments; clarifying the treatment of property of 
  1.9             certain limited liability companies for certain 
  1.10            property tax exemption purposes; amending Minnesota 
  1.11            Statutes 1998, sections 126C.55, subdivision 7; 
  1.12            272.02, by adding a subdivision; 383D.41, subdivisions 
  1.13            1, 2, 3, and by adding subdivisions; 473.39, by adding 
  1.14            a subdivision; 475.56; and 475.60, subdivisions 1 and 
  1.15            3. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 1998, section 126C.55, 
  1.18  subdivision 7, is amended to read: 
  1.19     Subd. 7.  [ELECTION AS TO MANDATORY APPLICATION.] A 
  1.20  district may covenant and obligate itself, prior to the issuance 
  1.21  of an issue of debt obligations, to notify the commissioner of a 
  1.22  potential default and to use the provisions of this section to 
  1.23  guarantee payment of the principal and interest on those debt 
  1.24  obligations when due.  If the district obligates itself to be 
  1.25  bound by this section, it must covenant in the resolution that 
  1.26  authorizes the issuance of the debt obligations to deposit with 
  1.27  the paying agent three business days prior to the date on which 
  1.28  a payment is due an amount sufficient to make that payment or to 
  1.29  notify the commissioner under subdivision 1 that it will be 
  1.30  unable to make all or a portion of that payment.  A district 
  2.1   that has obligated itself must include a provision in its 
  2.2   agreement with the paying agent for that issue that requires the 
  2.3   paying agent to inform the commissioner if it becomes aware of a 
  2.4   potential default in the payment of principal or interest on 
  2.5   that issue or if, on the day two business days prior to the date 
  2.6   a payment is due on that issue, there are insufficient funds to 
  2.7   make the payment on deposit with the paying agent.  Funds 
  2.8   invested in a refunding escrow account established under section 
  2.9   475.67 that are to become available to the paying agent on a 
  2.10  principal or interest payment date are deemed to be on deposit 
  2.11  with the paying agent three business days before the payment 
  2.12  date.  If a district either covenants to be bound by this 
  2.13  section or accepts state payments under this section to prevent 
  2.14  a default of a particular issue of debt obligations, the 
  2.15  provisions of this section shall be binding as to that issue as 
  2.16  long as any debt obligation of that issue remain outstanding.  
  2.17  If the provisions of this section are or become binding for more 
  2.18  than one issue of debt obligations and a district is unable to 
  2.19  make payments on one or more of those issues, the district must 
  2.20  continue to make payments on the remaining issues.  
  2.21     Sec. 2.  Minnesota Statutes 1998, section 272.02, is 
  2.22  amended by adding a subdivision to read: 
  2.23     Subd. 1b.  [TREATMENT OF PROPERTY OF CERTAIN LIMITED 
  2.24  LIABILITY COMPANIES.] For purposes of the exemptions granted by 
  2.25  subdivision 1, property owned or operated by a limited liability 
  2.26  company consisting of a sole member shall be treated as if owned 
  2.27  or operated by that member. 
  2.28     Sec. 3.  Minnesota Statutes 1998, section 383D.41, 
  2.29  subdivision 1, is amended to read: 
  2.30     Subdivision 1.  [HOUSING AND REDEVELOPMENT AUTHORITY 
  2.31  COMMUNITY DEVELOPMENT AGENCY.] There is hereby created in Dakota 
  2.32  county a public body corporate and politic, to be known as the 
  2.33  Dakota county housing and redevelopment authority community 
  2.34  development agency, having all of the powers and duties of a 
  2.35  housing and redevelopment authority under sections 469.001 to 
  2.36  469.047; which act applies and all powers and duties of a county 
  3.1   housing and redevelopment authority under any other provisions 
  3.2   of Minnesota law.  Sections 469.001 to 469.047 and 469.090 to 
  3.3   469.1081 apply to the county of Dakota.  For the purposes of 
  3.4   applying the provisions of the municipal housing and 
  3.5   redevelopment act sections 469.001 to 469.047 and 469.090 to 
  3.6   469.1081 to Dakota county, and subject to the provisions of this 
  3.7   section, the county has all of the powers and duties of a 
  3.8   municipality, the county board has all of the powers and duties 
  3.9   of a governing body, the chair of the county board has all of 
  3.10  the powers and duties of a mayor, and the area of operation 
  3.11  includes the area within the territorial boundaries of the 
  3.12  county. 
  3.13     Sec. 4.  Minnesota Statutes 1998, section 383D.41, 
  3.14  subdivision 2, is amended to read: 
  3.15     Subd. 2.  This section shall not limit or restrict any 
  3.16  existing housing and redevelopment authority or prevent a 
  3.17  municipality from creating an authority.  The county shall not 
  3.18  exercise jurisdiction in any municipality where a municipal 
  3.19  housing and redevelopment authority is established.  A municipal 
  3.20  housing and redevelopment authority may request the Dakota 
  3.21  county housing and redevelopment authority community development 
  3.22  agency to handle the housing duties of the authority and, in 
  3.23  such an event,.  If the municipal authority makes the request, 
  3.24  the Dakota county housing and redevelopment authority community 
  3.25  development agency shall act and have exclusive jurisdiction for 
  3.26  housing in the municipality pursuant to sections 469.001 to 
  3.27  469.047.  A transfer of duties relating to housing shall does 
  3.28  not transfer any duties relating to redevelopment. 
  3.29     Sec. 5.  Minnesota Statutes 1998, section 383D.41, 
  3.30  subdivision 3, is amended to read: 
  3.31     Subd. 3.  If any housing or project, development district, 
  3.32  redevelopment project, or economic development project is 
  3.33  constructed in Dakota county pursuant to this authorization, and 
  3.34  such the project is within the boundaries of any incorporated 
  3.35  home rule charter or statutory city, the location of such the 
  3.36  project shall must be approved by the governing body of the 
  4.1   city, and: 
  4.2      (1) in the case of any housing project or housing 
  4.3   development project, by the municipal housing and redevelopment 
  4.4   authority established for the city if it has not previously 
  4.5   requested that the Dakota county community development agency or 
  4.6   its predecessor agency handle the housing duties of the 
  4.7   authority; or 
  4.8      (2) in the case of any redevelopment project by the 
  4.9   municipal housing and redevelopment authority established for 
  4.10  the city. 
  4.11     Sec. 6.  Minnesota Statutes 1998, section 383D.41, is 
  4.12  amended by adding a subdivision to read: 
  4.13     Subd. 7.  [DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY.] (a) 
  4.14  After December 31, 1999, the Dakota county housing and 
  4.15  redevelopment authority shall be known as the Dakota county 
  4.16  community development agency.  In addition to the other powers 
  4.17  granted in this section, the Dakota county community development 
  4.18  agency shall have the powers of an economic development 
  4.19  authority under sections 469.090 to 469.1081 that are granted to 
  4.20  the agency by resolution adopted by the Dakota county board of 
  4.21  commissioners, except as provided in paragraph (b).  The agency 
  4.22  may exercise any of the powers granted to it under sections 
  4.23  469.001 to 469.047 and any of the powers of an economic 
  4.24  development authority granted to it by the Dakota county board 
  4.25  of commissioners for the purposes described in these sections. 
  4.26     (b) The Dakota county community development agency may not 
  4.27  levy the tax described in section 469.107, but with the approval 
  4.28  of the Dakota county board may increase its levy of the special 
  4.29  tax described in section 469.033, subdivision 6, to an amount 
  4.30  not exceeding 0.01813 percent of net tax capacity, or any higher 
  4.31  limit authorized under section 469.107 or 469.033, subdivision 6.
  4.32     Sec. 7.  Minnesota Statutes 1998, section 383D.41, is 
  4.33  amended by adding a subdivision to read: 
  4.34     Subd. 8.  [OFFERS OF TAX-FORFEITED LANDS.] Notwithstanding 
  4.35  any other law, Dakota county may offer to the Dakota county 
  4.36  community development agency, under the conditions and policies 
  5.1   established by the county, nonconservation tax-forfeited land 
  5.2   prior to making the properties available to cities in Dakota 
  5.3   county. 
  5.4      Sec. 8.  Minnesota Statutes 1998, section 473.39, is 
  5.5   amended by adding a subdivision to read: 
  5.6      Subd. 1g.  [OBLIGATIONS; 2000-2002.] In addition to the 
  5.7   authority in subdivisions 1a, 1b, 1c, 1d, and 1e, the council 
  5.8   may issue certificates of indebtedness, bonds, or other 
  5.9   obligations under this section in an amount not exceeding 
  5.10  $36,000,000, which may be used for capital expenditures, other 
  5.11  than for construction, maintenance, or operation of light rail 
  5.12  transit, as prescribed in the council's transit capital 
  5.13  improvement program and for related costs, including the costs 
  5.14  of issuance and sale of the obligations.  The funds must be 
  5.15  proportionally spent on capital improvement projects as 
  5.16  recommended by the regional transit capital evaluation committee.
  5.17     Sec. 9.  [APPLICATION.] 
  5.18     Section 8 applies in the counties of Anoka, Carver, Dakota, 
  5.19  Hennepin, Ramsey, Scott, and Washington. 
  5.20     Sec. 10.  Minnesota Statutes 1998, section 475.56, is 
  5.21  amended to read: 
  5.22     475.56 [INTEREST RATE.] 
  5.23     (a) Any municipality issuing obligations under any law may 
  5.24  issue obligations bearing interest at a single rate or at rates 
  5.25  varying from year to year which may be lower or higher in later 
  5.26  years than in earlier years.  Such higher rate for any period 
  5.27  prior to maturity may be represented in part by separate coupons 
  5.28  designated as additional coupons, extra coupons, or B coupons, 
  5.29  but the highest aggregate rate of interest contracted to be so 
  5.30  paid for any period shall not exceed the maximum rate authorized 
  5.31  by law.  Such higher rate may also be represented in part by the 
  5.32  issuance of additional obligations of the same series, over and 
  5.33  above but not exceeding two percent of the amount otherwise 
  5.34  authorized to be issued, and the amount of such additional 
  5.35  obligations shall not be included in the amount required by 
  5.36  section 475.59 to be stated in any bond resolution, notice, or 
  6.1   ballot, or in the sale price required by section 475.60 or any 
  6.2   other law to be paid; but if the principal amount of the entire 
  6.3   series exceeds its cash sale price, such excess shall not, when 
  6.4   added to the total amount of interest payable on all obligations 
  6.5   of the series to their stated maturity dates, cause the average 
  6.6   annual rate of such interest to exceed the maximum rate 
  6.7   authorized by law.  This section does not authorize a provision 
  6.8   in any such obligations for the payment of a higher rate of 
  6.9   interest after maturity than before. 
  6.10     (b) Any municipality issuing obligations under any law may 
  6.11  sell original issue discount obligations having a stated 
  6.12  principal amount in excess of the authorized amount and the sale 
  6.13  price, provided that: 
  6.14     (1) the sale price does not exceed by more than two percent 
  6.15  the amount of obligations otherwise authorized to be issued; 
  6.16     (2) the underwriting fee, discount, or other sales or 
  6.17  underwriting commission does not exceed two percent of the sale 
  6.18  price; and 
  6.19     (3) the discount rate necessary to present value total 
  6.20  principal and interest payments over the term of the issue to 
  6.21  the sale price does not exceed the lesser of the maximum rate 
  6.22  permitted by law for municipal obligations or ten percent. 
  6.23     (c) Any obligation of an issue of obligations otherwise 
  6.24  subject to section 475.55, subdivision 1, may bear interest at a 
  6.25  rate varying periodically at the time or times and on the terms, 
  6.26  including convertibility to a fixed rate of interest, determined 
  6.27  by the governing body of the municipality, but the rate of 
  6.28  interest for any period shall not exceed the maximum rate of 
  6.29  interest for the obligations determined in accordance with 
  6.30  section 475.55, subdivision 1.  For purposes of section 475.61, 
  6.31  subdivisions 1 and 3, the interest payable on variable rate 
  6.32  obligations for their term shall be determined as if their rate 
  6.33  of interest is the maximum rate permitted for the obligations 
  6.34  under section 475.55, subdivision 1, or the lesser maximum rate 
  6.35  of interest payable on the obligations in accordance with their 
  6.36  terms, but if the interest rate is subsequently converted to a 
  7.1   fixed rate the levy may be modified to provide at least five 
  7.2   percent in excess of amounts necessary to pay principal of and 
  7.3   interest at the fixed rate on the obligations when due.  For 
  7.4   purposes of computing debt service or interest pursuant to 
  7.5   section 475.67, subdivision 12, interest throughout the term of 
  7.6   bonds issued pursuant to this subdivision is deemed to accrue at 
  7.7   the rate of interest first borne by the bonds.  The provisions 
  7.8   of this paragraph do not apply to obligations issued by a 
  7.9   statutory or home rule charter city with a population of less 
  7.10  than 7,500, as defined in section 477A.011, subdivision 3, or to 
  7.11  obligations that are not rated A or better, or an equivalent 
  7.12  subsequently established rating, by Standard and Poor's 
  7.13  Corporation, Moody's Investors Service or other similar 
  7.14  nationally recognized rating agency, except that any statutory 
  7.15  or home rule charter city, regardless of population or bond 
  7.16  rating, may issue variable rate obligations as a participant in 
  7.17  a bond pooling program established by the league of Minnesota 
  7.18  cities that meets this bond rating requirement. 
  7.19     Sec. 11.  Minnesota Statutes 1998, section 475.60, 
  7.20  subdivision 1, is amended to read: 
  7.21     Subdivision 1.  [ADVERTISEMENT.] All obligations shall be 
  7.22  negotiated and sold by the governing body, except when authority 
  7.23  therefor is delegated by the governing body or by the charter of 
  7.24  the municipality to a board, department, or officers of the 
  7.25  municipality.  Except as provided in section 475.56, obligations 
  7.26  shall be sold at not less than par value plus accrued interest 
  7.27  to date of delivery and not greater than two percent greater 
  7.28  than the amount authorized to be issued plus accrued interest.  
  7.29  Except as provided in subdivision 2 all obligations shall be 
  7.30  sold at public competitive sale after notice given at least ten 
  7.31  days in advance by publication in a legal newspaper having 
  7.32  general circulation in the municipality and ten days in advance 
  7.33  by publication in a daily or weekly periodical published in a 
  7.34  Minnesota city of the first class, or its metropolitan area, 
  7.35  which circulates throughout the state and furnishes financial 
  7.36  news as a part of its service as provided in subdivision 3. 
  8.1      Sec. 12.  Minnesota Statutes 1998, section 475.60, 
  8.2   subdivision 3, is amended to read: 
  8.3      Subd. 3.  [PUBLISHED NOTICE.] Published notice The notice 
  8.4   of sale to prospective bidders, where required, shall specify 
  8.5   the maximum principal amount of the obligations, the place of 
  8.6   receipt and consideration of bids and such other details as to 
  8.7   the obligations and terms of sale as the governing body or the 
  8.8   municipality's authorized financial consultant deems suitable.  
  8.9   The published notice shall either specify the date and time for 
  8.10  receipt of bids or provide that the bids will be received at a 
  8.11  date and time not less than ten nor more than 60 days after the 
  8.12  date of publication.  If the published notice does not state the 
  8.13  specific date or amount for the sale, it shall specify the 
  8.14  manner in which notice of the date or amount of the sale will be 
  8.15  given to prospective bidders.  Notification of prospective 
  8.16  bidders shall be given by mail, facsimile, electronic data 
  8.17  transmission or other form of communication common to the 
  8.18  municipal bond trade at least four two days (omitting Saturdays, 
  8.19  Sundays, and legal holidays) before the date for receipt of bids 
  8.20  to at least five firms determined by the governing body or its 
  8.21  financial consultant to be prospective bidders, or shall be 
  8.22  published in a newspaper or other periodical which circulates 
  8.23  throughout the state and furnishes financial news as part of its 
  8.24  service.  If within five days after the date of publication a 
  8.25  prospective bidder requests in writing to be notified by mail, 
  8.26  the municipality shall do so.  Failure to give the notice as 
  8.27  described in the preceding sentence to a bidder this subdivision 
  8.28  shall not affect the validity of the sale or of the 
  8.29  obligations.  Bids may be accepted by facsimile or other 
  8.30  electronic transmission or in writing as specified by the 
  8.31  governing body or its financial consultant.  The governing body 
  8.32  may employ an agent to receive and open the bids at any place 
  8.33  within or outside the corporate limits of the municipality, in 
  8.34  the presence of an officer of the municipality or the officer's 
  8.35  designee, but the obligations shall not be sold except by action 
  8.36  of the governing body or authorized officers of the municipality 
  9.1   after communication of the bids to them.  Additional notice may 
  9.2   be given for such time and in such manner as the governing body 
  9.3   deems suitable.  At the time and place so fixed, the bids shall 
  9.4   be opened considered and the offer complying with the terms of 
  9.5   sale and deemed most favorable shall be accepted, but the 
  9.6   governing body may reject any and all such offers, in which 
  9.7   event, or if no offers have been received, it may award the 
  9.8   obligations to any person who within 30 days thereafter presents 
  9.9   an offer complying with the terms of sale and deemed more 
  9.10  favorable than any received previously, or upon like notice the 
  9.11  governing body may invite other bids upon the same or different 
  9.12  terms and conditions, except that if the original published 
  9.13  notice does not state the specific date or amount for the sale 
  9.14  and if the material terms and conditions of the sale remain the 
  9.15  same, except for the date and amount, notice of the date or 
  9.16  amount may be given in the manner provided above. 
  9.17     Sec. 13.  [CUYUNA RANGE JOINT POWERS ECONOMIC DEVELOPMENT 
  9.18  AUTHORITY.] 
  9.19     The Cuyuna Range joint powers economic development 
  9.20  authority, originally established by resolutions of the member 
  9.21  cities, is authorized to act as an economic development 
  9.22  authority and may exercise the powers of an economic development 
  9.23  authority under Minnesota Statutes, sections 469.090 to 
  9.24  469.1081, that are delegated to it by the member cities, 
  9.25  including, without limitation, the authority to own and operate 
  9.26  a civic center facility that includes athletic and other public 
  9.27  facilities. 
  9.28     Sec. 14.  [CERTAIN TAXES.] 
  9.29     The provisions of Laws 1997, chapter 231, article 1, 
  9.30  sections 4, 5, 6, 8, and 15, are reenacted. 
  9.31     Sec. 15.  [TAX ABATEMENT.] 
  9.32     The provisions of Laws 1997, chapter 231, article 2, 
  9.33  sections 45 to 48, inclusive, are reenacted. 
  9.34     Sec. 16.  [TAX INCREMENT.] 
  9.35     The provisions of Laws 1997, chapter 231, article 10, are 
  9.36  reenacted. 
 10.1      Sec. 17.  [INSTRUCTION TO THE REVISOR.] 
 10.2      In the 2000 edition of Minnesota Statutes, the revisor of 
 10.3   statutes shall change "Dakota county housing and redevelopment 
 10.4   authority" to "Dakota county community development agency" 
 10.5   wherever it appears. 
 10.6      Sec. 18.  [EFFECTIVE DATE.] 
 10.7      Sections 3 to 7 are effective upon compliance by the Dakota 
 10.8   county board of commissioners with the provisions of Minnesota 
 10.9   Statutes, section 645.021.  The rest of this act is effective 
 10.10  the day following final enactment.