HF 2368

as introduced - 87th Legislature (2011 - 2012) Posted on 02/20/2012 01:08pm

A bill for an act
relating to local government; requiring voter approval of certain lease financings;
proposing coding for new law in Minnesota Statutes, chapter 416.

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

Section 1.

new text begin [416.17] VOTER APPROVAL REQUIRED; LEASES OF PUBLIC
BUILDINGS.
new text end

new text begin Subdivision 1. new text end

new text begin Voter approval of certain leases. new text end

new text begin (a) A municipality must obtain the
approval of a majority of the electors voting on the question before executing a lease for
its use of public land, all or part of a public building, or other public facilities consisting of
real property for a term of three or more years as a lessee if:
new text end

new text begin (1) the property to be leased to the municipality was acquired or improved with
the proceeds of obligations, as defined in section 475.51, subdivision 3, issued by an
authority; or
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new text begin (2) the sum of the municipality's maximum payments under the lease, in any year,
exceeds the lesser of 0.05 percent of the estimated market value of taxable property in the
municipality or five percent of the municipality's most recently approved property tax levy.
new text end

new text begin (b) The notice of the election and submission of the question is governed by section
475.59, except the question to be submitted to the voters must state the maximum annual
amount of the lease payment in lieu of the maximum amount of the bond issue.
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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.
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new text begin (b) "Authority" includes any of the following governmental units, the boundaries of
which include all or part of the geographic area of the municipality:
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new text begin (1) a housing and redevelopment authority, as defined in section 469.002;
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new text begin (2) a port authority or seaway port authority, as defined in section 469.048;
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new text begin (3) an economic development authority, as defined in section 469.090; or
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new text begin (4) an entity established or exercising powers under a special law with powers
similar to those of an entity described in clauses (1) to (3).
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new text begin (c) "Municipality" means a statutory or home rule charter city, a county, or a town
described in section 368.01.
new text end