HF 3081

2nd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to public finance; modifying the authority of 
  1.3             cities and counties to finance purchases of computers 
  1.4             and related items; clarifying the financing of 
  1.5             conservation easements; extending sunsets on 
  1.6             establishment of special service districts and housing 
  1.7             improvement areas; extending the maximum maturity of 
  1.8             bonds for qualified housing development projects; 
  1.9             revising time for certain notices of issues; modifying 
  1.10            the authority to finance street reconstruction; 
  1.11            modifying limits on city capital improvement bonds; 
  1.12            changing the limits on city or county support of 
  1.13            prevention of cruelty to animal societies; changing 
  1.14            the definition of subsystems for purposes of the 
  1.15            metropolitan area public safety radio system law and 
  1.16            authorizing assistance to local government units for 
  1.17            building subsystems in the State Patrol central 
  1.18            district; authorizing certain nonprofit corporations 
  1.19            for certain limited purposes; requiring housing 
  1.20            improvement district ordinances to be filed with the 
  1.21            state auditor; redefining housing development 
  1.22            improvement project; authorizing property tax 
  1.23            abatements to finance historic or heritage 
  1.24            preservation; extending the authorized maximum length 
  1.25            of some abatements; authorizing additional authority 
  1.26            to issue obligations by the Metropolitan Council for 
  1.27            bus transit and limiting some of its tax authority; 
  1.28            changing punctuation; making technical corrections; 
  1.29            making the Lakes Area Economic Development Authority a 
  1.30            special taxing district; reestablishing the Aitkin 
  1.31            Drainage and Conservancy District; permitting 
  1.32            abatements in a tax increment financing district in 
  1.33            the city of Fairmont; authorizing the transfer of 
  1.34            certain bond allocation authority; amending Minnesota 
  1.35            Statutes 2002, sections 343.11; 428A.02, subdivision 
  1.36            1; 428A.03, subdivision 1; 428A.101; 428A.21; 469.034, 
  1.37            subdivision 2; 469.1813, subdivisions 1, 6; 473.39, by 
  1.38            adding a subdivision; 473.446, subdivision 1; 
  1.39            474A.131, subdivision 1; 475.52, subdivisions 1, 3, 4; 
  1.40            Minnesota Statutes 2003 Supplement, sections 373.01, 
  1.41            subdivision 3; 373.40, subdivision 1; 403.21, 
  1.42            subdivision 8; 403.27, subdivisions 1, 3; 410.32; 
  1.43            412.301; 475.521, subdivision 4; 475.58, subdivision 
  1.44            3b; Laws 2003, chapter 127, article 12, section 38; 
  1.45            proposing coding for new law in Minnesota Statutes, 
  1.46            chapters 373; 428A. 
  2.1   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.2      Section 1.  Minnesota Statutes 2002, section 343.11, is 
  2.3   amended to read: 
  2.4      343.11 [ACQUISITION OF PROPERTY, APPROPRIATIONS.] 
  2.5      Every county and district society for the prevention of 
  2.6   cruelty to animals may acquire, by purchase, gift, grant, or 
  2.7   devise, and hold, use, or convey, real estate and personal 
  2.8   property, and lease, mortgage, sell, or use the same in any 
  2.9   manner conducive to its interest, to the same extent as natural 
  2.10  persons.  The county board of any county, or the council of any 
  2.11  city, in which such societies exist, may, in its discretion, 
  2.12  appropriate for the maintenance and support of such societies in 
  2.13  the transaction of the work for which they are organized, any 
  2.14  sums of money not otherwise appropriated, not to exceed in any 
  2.15  one year the sum of $4,800 or the sum of 50 75 cents per capita 
  2.16  based upon the county's or city's population as of the most 
  2.17  recent federal census, whichever is greater; provided, that no 
  2.18  part of the appropriation shall be expended for the payment of 
  2.19  the salary of any officer of the society. 
  2.20     [EFFECTIVE DATE.] This section is effective January 1, 2005.
  2.21     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  2.22  373.01, subdivision 3, is amended to read: 
  2.23     Subd. 3.  [CAPITAL NOTES.] (a) A county board may, by 
  2.24  resolution and without referendum, issue capital notes subject 
  2.25  to the county debt limit to purchase capital equipment useful 
  2.26  for county purposes that has an expected useful life at least 
  2.27  equal to the term of the notes.  The notes shall be payable in 
  2.28  not more than five years and shall be issued on terms and in a 
  2.29  manner the board determines.  A tax levy shall be made for 
  2.30  payment of the principal and interest on the notes, in 
  2.31  accordance with section 475.61, as in the case of bonds. 
  2.32     (b) For purposes of this subdivision, "capital equipment" 
  2.33  means: 
  2.34     (1) public safety, ambulance, road construction or 
  2.35  maintenance, and medical equipment,; and 
  2.36     (2) computer hardware and original operating system 
  3.1   software, whether bundled with machinery or equipment or 
  3.2   unbundled, but excluding an upgrade or later version of software 
  3.3   already owned by the county. 
  3.4      (c) The authority to issue capital notes for original 
  3.5   operating systems software expires on July 1, 2005. 
  3.6      Sec. 3.  [373.251] [LEVY FOR NON-COUNTY-OWNED PUBLIC 
  3.7   NURSING HOMES.] 
  3.8      (a) If a county has a population of less than 210,000 
  3.9   people, contains a city of the first class, and owns a nursing 
  3.10  home that is funded in whole or part with county revenue, the 
  3.11  county must levy an equal amount annually to be distributed to 
  3.12  all other nursing homes within the county that are owned by 
  3.13  public bodies. 
  3.14     (b) The proceeds of the levy authorized by paragraph (a) 
  3.15  must be prorated among the recipient nursing homes in the 
  3.16  proportion that the number of beds in each recipient nursing 
  3.17  home is to the number of beds in all the recipient nursing homes 
  3.18  in the county. 
  3.19     (c) The levy authorized by paragraph (a) may be levied in 
  3.20  addition to all other county levies authorized by law. 
  3.21     [EFFECTIVE DATE.] The levy added by this section must first 
  3.22  be levied in 2004, payable in 2005. 
  3.23     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
  3.24  373.40, subdivision 1, is amended to read: 
  3.25     Subdivision 1.  [DEFINITIONS.] For purposes of this 
  3.26  section, the following terms have the meanings given. 
  3.27     (a) "Bonds" means an obligation as defined under section 
  3.28  475.51. 
  3.29     (b) "Capital improvement" means acquisition or betterment 
  3.30  of public lands, development rights in the form of conservation 
  3.31  easements under chapter 84C, buildings, or other improvements 
  3.32  within the county for the purpose of a county courthouse, 
  3.33  administrative building, health or social service facility, 
  3.34  correctional facility, jail, law enforcement center, hospital, 
  3.35  morgue, library, park, qualified indoor ice arena, and roads and 
  3.36  bridges, and the acquisition of development rights in the form 
  4.1   of conservation easements under chapter 84C.  An improvement 
  4.2   must have an expected useful life of five years or more to 
  4.3   qualify.  "Capital improvement" does not include light rail 
  4.4   transit or any activity related to it or a recreation or sports 
  4.5   facility building (such as, but not limited to, a gymnasium, ice 
  4.6   arena, racquet sports facility, swimming pool, exercise room or 
  4.7   health spa), unless the building is part of an outdoor park 
  4.8   facility and is incidental to the primary purpose of outdoor 
  4.9   recreation. 
  4.10     (c) "Commissioner" means the commissioner of employment and 
  4.11  economic development. 
  4.12     (d) "Metropolitan county" means a county located in the 
  4.13  seven-county metropolitan area as defined in section 473.121 or 
  4.14  a county with a population of 90,000 or more. 
  4.15     (e) "Population" means the population established by the 
  4.16  most recent of the following (determined as of the date the 
  4.17  resolution authorizing the bonds was adopted): 
  4.18     (1) the federal decennial census, 
  4.19     (2) a special census conducted under contract by the United 
  4.20  States Bureau of the Census, or 
  4.21     (3) a population estimate made either by the metropolitan 
  4.22  council or by the state demographer under section 4A.02. 
  4.23     (f) "Qualified indoor ice arena" means a facility that 
  4.24  meets the requirements of section 373.43. 
  4.25     (g) "Tax capacity" means total taxable market value, but 
  4.26  does not include captured market value. 
  4.27     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
  4.28  403.21, subdivision 8, is amended to read: 
  4.29     Subd. 8.  [SUBSYSTEMS.] "Subsystems" or "public safety 
  4.30  radio subsystems" means systems identified in the plan or a plan 
  4.31  developed under section 403.36 as subsystems interconnected by 
  4.32  the first and third phase backbone in subsequent phases and 
  4.33  operated by local government units for their own internal 
  4.34  operations. 
  4.35     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
  4.36  403.27, subdivision 1, is amended to read: 
  5.1      Subdivision 1.  [AUTHORIZATION.] After consulting with the 
  5.2   commissioner of finance, the council, if requested by a vote of 
  5.3   at least two-thirds of all of the members of the Public Safety 
  5.4   Radio Communication System Planning Committee established under 
  5.5   section 403.36, may, by resolution, authorize the issuance of 
  5.6   its revenue bonds for any of the following purposes to: 
  5.7      (1) provide funds for regionwide mutual aid and emergency 
  5.8   medical services communications; 
  5.9      (2) provide funds for the elements of the first phase of 
  5.10  the regionwide public safety radio communications system that 
  5.11  the board determines are of regionwide benefit and support 
  5.12  mutual aid and emergency medical services communication 
  5.13  including, but not limited to, costs of master controllers of 
  5.14  the backbone; 
  5.15     (3) provide money for the second phase of the public safety 
  5.16  radio communication system; 
  5.17     (4) provide money for the third phase of the public safety 
  5.18  radio communication system; 
  5.19     (5) to the extent money is available after meeting the 
  5.20  needs described in clauses (1) to (3), provide money to 
  5.21  reimburse local units of government for amounts expended for 
  5.22  capital improvements to the first phase system previously paid 
  5.23  for by the local government units; or 
  5.24     (6) provide money for assistance to a local government unit 
  5.25  for up to 50 percent of the cost of building a subsystem in the 
  5.26  southeast district or in the counties of Benton, Sherburne, 
  5.27  Stearns, or Wright in the central district of the State Patrol; 
  5.28  or 
  5.29     (7) refund bonds issued under this section. 
  5.30     Sec. 7.  Minnesota Statutes 2003 Supplement, section 
  5.31  403.27, subdivision 3, is amended to read: 
  5.32     Subd. 3.  [LIMITATIONS.] (a) The principal amount of the 
  5.33  bonds issued pursuant to subdivision 1, exclusive of any 
  5.34  original issue discount, shall not exceed the amount of 
  5.35  $10,000,000 plus the amount the council determines necessary to 
  5.36  pay the costs of issuance, fund reserves, debt service, and pay 
  6.1   for any bond insurance or other credit enhancement. 
  6.2      (b) In addition to the amount authorized under paragraph 
  6.3   (a), the council may issue bonds under subdivision 1 in a 
  6.4   principal amount of $3,306,300, plus the amount the council 
  6.5   determines necessary to pay the cost of issuance, fund reserves, 
  6.6   debt service, and any bond insurance or other credit 
  6.7   enhancement.  The proceeds of bonds issued under this paragraph 
  6.8   may not be used to finance portable or subscriber radio sets. 
  6.9      (c) In addition to the amount authorized under paragraphs 
  6.10  (a) and (b), the council may issue bonds under subdivision 1 in 
  6.11  a principal amount of $18,000,000, plus the amount the council 
  6.12  determines necessary to pay the costs of issuance, fund 
  6.13  reserves, debt service, and any bond insurance or other credit 
  6.14  enhancement.  The proceeds of bonds issued under this paragraph 
  6.15  must be used to pay up to 50 percent of the cost to a local 
  6.16  government unit of building a subsystem identified in the plan 
  6.17  adopted under section 403.23, subdivision 2, and may not be used 
  6.18  to finance portable or subscriber radio sets.  The bond proceeds 
  6.19  may be used to make improvements to an existing 800 MHz radio 
  6.20  system that will interoperate with the regionwide public safety 
  6.21  radio communication system, provided that the improvements 
  6.22  conform to the board's plan and technical standards.  The 
  6.23  council must time the sale and issuance of the bonds so that the 
  6.24  debt service on the bonds can be covered by the additional 
  6.25  revenue that will become available in the fiscal year ending 
  6.26  June 30, 2005, generated under section 403.11 and appropriated 
  6.27  under section 403.30.  
  6.28     (d) In addition to the amount authorized under paragraphs 
  6.29  (a) to (c), the council may issue bonds under subdivision 1 in a 
  6.30  principal amount of up to $27,000,000, plus the amount the 
  6.31  council determines necessary to pay the costs of issuance, fund 
  6.32  reserves, debt service, and any bond insurance or other credit 
  6.33  enhancement.  The proceeds of bonds issued under this paragraph 
  6.34  are appropriated to the commissioner of public safety for phase 
  6.35  three of the public safety radio communication system.  In 
  6.36  anticipation of the receipt by the commissioner of public safety 
  7.1   of the bond proceeds, the Metropolitan Radio Board may advance 
  7.2   money from its operating appropriation to the commissioner of 
  7.3   public safety to pay for design and preliminary engineering for 
  7.4   phase three.  The commissioner of public safety must return 
  7.5   these amounts to the Metropolitan Radio Board when the bond 
  7.6   proceeds are received. 
  7.7      (e) In addition to the amount authorized under paragraphs 
  7.8   (a) to (d), the council may issue bonds under subdivision 1 in a 
  7.9   principal amount of up to $9,557,000, plus the amount the 
  7.10  council determines necessary to pay the costs of issuance, fund 
  7.11  reserves, debt service, and any bond insurance or other credit 
  7.12  enhancement.  The proceeds of bonds issued under this paragraph 
  7.13  are appropriated to the commissioner of public safety for the 
  7.14  purpose of subdivision 1, clause (6), provided that the proceeds 
  7.15  may not be used to finance portable or subscriber radio sets. 
  7.16     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
  7.17  410.32, is amended to read: 
  7.18     410.32 [CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL 
  7.19  EQUIPMENT.] 
  7.20     (a) Notwithstanding any contrary provision of other law or 
  7.21  charter, a home rule charter city may, by resolution and without 
  7.22  public referendum, issue capital notes subject to the city debt 
  7.23  limit to purchase capital equipment. 
  7.24     (b) For purposes of this section, "capital equipment" means:
  7.25     (1) public safety equipment, ambulance and other medical 
  7.26  equipment, road construction and maintenance equipment, and 
  7.27  other capital equipment; and 
  7.28     (2) computer hardware and original operating system 
  7.29  software, provided whether bundled with machinery or equipment 
  7.30  or unbundled, but excluding an upgrade or later version of 
  7.31  software already owned by the city. 
  7.32     (c) The equipment or software has must have an expected 
  7.33  useful life at least as long as the term of the notes. 
  7.34     (d) The authority to issue capital notes for original 
  7.35  operating system software expires on July 1, 2005. 
  7.36     (e) The notes shall be payable in not more than five years 
  8.1   and be issued on terms and in the manner the city determines.  
  8.2   The total principal amount of the capital notes issued in a 
  8.3   fiscal year shall not exceed 0.03 percent of the market value of 
  8.4   taxable property in the city for that year. 
  8.5      (f) A tax levy shall be made for the payment of the 
  8.6   principal and interest on the notes, in accordance with section 
  8.7   475.61, as in the case of bonds. 
  8.8      (g) Notes issued under this section shall require an 
  8.9   affirmative vote of two-thirds of the governing body of the city.
  8.10     (h) Notwithstanding a contrary provision of other law or 
  8.11  charter, a home rule charter city may also issue capital notes 
  8.12  subject to its debt limit in the manner and subject to the 
  8.13  limitations applicable to statutory cities pursuant to section 
  8.14  412.301. 
  8.15     Sec. 9.  Minnesota Statutes 2003 Supplement, section 
  8.16  412.301, is amended to read: 
  8.17     412.301 [FINANCING PURCHASE OF CERTAIN EQUIPMENT.] 
  8.18     (a) The council may issue certificates of indebtedness or 
  8.19  capital notes subject to the city debt limits to 
  8.20  purchase capital equipment. 
  8.21     (b) For purposes of this section, "capital equipment" means:
  8.22     (1) public safety equipment, ambulance and other medical 
  8.23  equipment, road construction or and maintenance equipment, and 
  8.24  other capital equipment; and 
  8.25     (2) computer hardware and original operating system 
  8.26  software, provided whether bundled with machinery or equipment 
  8.27  or unbundled, but excluding an upgrade or later version of 
  8.28  software already owned by the city.  
  8.29     (c) The equipment or software has must have an expected 
  8.30  useful life at least as long as the terms of the certificates or 
  8.31  notes. 
  8.32     (d) The authority to issue capital notes for original 
  8.33  operating system software expires on July 1, 2005. 
  8.34     (e) Such certificates or notes shall be payable in not more 
  8.35  than five years and shall be issued on such terms and in such 
  8.36  manner as the council may determine. 
  9.1      (f) If the amount of the certificates or notes to be issued 
  9.2   to finance any such purchase exceeds 0.25 percent of the market 
  9.3   value of taxable property in the city, they shall not be issued 
  9.4   for at least ten days after publication in the official 
  9.5   newspaper of a council resolution determining to issue them; and 
  9.6   if before the end of that time, a petition asking for an 
  9.7   election on the proposition signed by voters equal to ten 
  9.8   percent of the number of voters at the last regular municipal 
  9.9   election is filed with the clerk, such certificates or notes 
  9.10  shall not be issued until the proposition of their issuance has 
  9.11  been approved by a majority of the votes cast on the question at 
  9.12  a regular or special election. 
  9.13     (g) A tax levy shall be made for the payment of the 
  9.14  principal and interest on such certificates or notes, in 
  9.15  accordance with section 475.61, as in the case of bonds. 
  9.16     Sec. 10.  Minnesota Statutes 2002, section 428A.02, 
  9.17  subdivision 1, is amended to read: 
  9.18     Subdivision 1.  [ORDINANCE.] The governing body of a city 
  9.19  may adopt an ordinance establishing a special service district.  
  9.20  Only property that is classified under section 273.13 and used 
  9.21  for commercial, industrial, or public utility purposes, or is 
  9.22  vacant land zoned or designated on a land use plan for 
  9.23  commercial or industrial use and located in the special service 
  9.24  district, may be subject to the charges imposed by the city on 
  9.25  the special service district.  Other types of property may be 
  9.26  included within the boundaries of the special service district 
  9.27  but are not subject to the levies or charges imposed by the city 
  9.28  on the special service district.  If 50 percent or more of the 
  9.29  market value of a parcel of property is classified under section 
  9.30  273.13 as commercial, industrial, or vacant land zoned or 
  9.31  designated on a land use plan for commercial or industrial use, 
  9.32  or public utility for the current assessment year, then the 
  9.33  entire market value of the property is subject to a service 
  9.34  charge based on net tax capacity for purposes of sections 
  9.35  428A.01 to 428A.10.  The ordinance shall describe with 
  9.36  particularity the area within the city to be included in the 
 10.1   district and the special services to be furnished in the 
 10.2   district.  For a city located outside of the metropolitan area, 
 10.3   as defined in section 473.121, the ordinance may also provide 
 10.4   that the activities of the special service district may be 
 10.5   managed by a nonprofit corporation created to assist and act on 
 10.6   behalf of the city in implementing and providing services as 
 10.7   authorized by this section.  The ordinance may not be adopted 
 10.8   until after a public hearing has been held on the question.  
 10.9   Notice of the hearing shall include the time and place of 
 10.10  hearing, a map showing the boundaries of the proposed district, 
 10.11  and a statement that all persons owning property in the proposed 
 10.12  district that would be subject to a service charge will be given 
 10.13  opportunity to be heard at the hearing.  Within 30 days after 
 10.14  adoption of the ordinance under this subdivision, the governing 
 10.15  body shall send a copy of the ordinance to the commissioner of 
 10.16  revenue. 
 10.17     [EFFECTIVE DATE.] This section is effective for ordinances 
 10.18  on which public hearings are conducted after June 30, 2004. 
 10.19     Sec. 11.  Minnesota Statutes 2002, section 428A.03, 
 10.20  subdivision 1, is amended to read: 
 10.21     Subdivision 1.  [HEARING.] Service charges may be imposed 
 10.22  by the city within the special service district at a rate or 
 10.23  amount sufficient to produce the revenues required to provide 
 10.24  special services in the district.  To determine the appropriate 
 10.25  rate for a service charge based on net tax capacity, taxable 
 10.26  property or net tax capacity must be determined without regard 
 10.27  to captured or original net tax capacity under section 469.177 
 10.28  or to the distribution or contribution value under section 
 10.29  473F.08.  Service charges may not be imposed to finance a 
 10.30  special service if the service is ordinarily provided by the 
 10.31  city from its general fund revenues unless the service is 
 10.32  provided in the district at an increased level.  In that case, a 
 10.33  service charge may be imposed only in the amount needed to pay 
 10.34  for the increased level of service.  A service charge may not be 
 10.35  imposed on the receipts from the sale of intoxicating liquor, 
 10.36  food, or lodging.  Before the imposition of service charges in a 
 11.1   district, for each calendar year, a hearing must be held under 
 11.2   section 428A.02 and notice must be given and must be mailed to 
 11.3   any individual or business organization subject to a service 
 11.4   charge.  For purposes of this section, the notice shall also 
 11.5   include: 
 11.6      (1) a statement that all interested persons will be given 
 11.7   an opportunity to be heard at the hearing regarding a proposed 
 11.8   service charge; 
 11.9      (2) the estimated cost of improvements to be paid for in 
 11.10  whole or in part by service charges imposed under this section, 
 11.11  the estimated cost of operating and maintaining the improvements 
 11.12  during the first year and upon completion of the improvements, 
 11.13  the proposed method and source of financing the improvements, 
 11.14  and the annual cost of operating and maintaining the 
 11.15  improvements; 
 11.16     (3) the proposed rate or amount of the proposed service 
 11.17  charge to be imposed in the district during the calendar year 
 11.18  and the nature and character of special services to be rendered 
 11.19  in the district during the calendar year in which the service 
 11.20  charge is to be collected; and 
 11.21     (4) a statement that the petition requirements of section 
 11.22  428A.08 have either been met or do not apply to the proposed 
 11.23  service charge; and 
 11.24     (5) if the city intends to contract with a nonprofit 
 11.25  corporation created to assist and act on behalf of the city in 
 11.26  implementing and providing services as authorized by ordinance 
 11.27  and resolution, a statement of that intent. 
 11.28     Within six months of the public hearing, the city may adopt 
 11.29  a resolution imposing a service charge within the district not 
 11.30  exceeding the amount or rate expressed in the notice issued 
 11.31  under this section. 
 11.32     [EFFECTIVE DATE.] This section is effective for notices of 
 11.33  public hearings conducted after June 30, 2004. 
 11.34     Sec. 12.  Minnesota Statutes 2002, section 428A.101, is 
 11.35  amended to read: 
 11.36     428A.101 [SPECIAL SERVICE DISTRICT; SUNSET OF 
 12.1   SELF-EXECUTING PROVISIONS.] 
 12.2      The establishment of a new special service district after 
 12.3   June 30, 2005 2007, requires enactment of a special law 
 12.4   authorizing the establishment. 
 12.5      Sec. 13.  [428A.102] [NOTIFICATION.] 
 12.6      By the last day of the calendar year in which a special 
 12.7   service district is established, the city shall file a copy of 
 12.8   the ordinance establishing the district with the Office of State 
 12.9   Auditor.  Cities establishing districts before the effective 
 12.10  date of this section must file a copy of the ordinance by 
 12.11  December 31, 2004. 
 12.12     Sec. 14.  Minnesota Statutes 2002, section 428A.21, is 
 12.13  amended to read: 
 12.14     428A.21 [SUNSET.] 
 12.15     No new housing improvement areas may be established under 
 12.16  sections 428A.11 to 428A.20 after June 30, 2005 2007.  After 
 12.17  June 30, 2005 2007, a city may establish a housing improvement 
 12.18  area, provided that it receives enabling legislation authorizing 
 12.19  the establishment of the area. 
 12.20     Sec. 15.  [428A.22] [NOTIFICATION.] 
 12.21     By the last day of the calendar year in which a housing 
 12.22  improvement district is established, the city shall file a copy 
 12.23  of the ordinance establishing the district with the Office of 
 12.24  State Auditor.  Cities establishing districts before the 
 12.25  effective date of this section must file a copy of the ordinance 
 12.26  by December 31, 2004. 
 12.27     Sec. 16.  Minnesota Statutes 2002, section 469.034, 
 12.28  subdivision 2, is amended to read: 
 12.29     Subd. 2.  [GENERAL OBLIGATION REVENUE BONDS.] (a) An 
 12.30  authority may pledge the general obligation of the general 
 12.31  jurisdiction governmental unit as additional security for bonds 
 12.32  payable from income or revenues of the project or the 
 12.33  authority.  The authority must find that the pledged revenues 
 12.34  will equal or exceed 110 percent of the principal and interest 
 12.35  due on the bonds for each year.  The proceeds of the bonds must 
 12.36  be used for a qualified housing development project or 
 13.1   projects.  The obligations must be issued and sold in the manner 
 13.2   and following the procedures provided by chapter 475, except the 
 13.3   obligations are not subject to approval by the electors and the 
 13.4   maturities may extend to not more than 30 40 years from the 
 13.5   estimated date of completion of the project.  The authority is 
 13.6   the municipality for purposes of chapter 475.  
 13.7      (b) The principal amount of the issue must be approved by 
 13.8   the governing body of the general jurisdiction governmental unit 
 13.9   whose general obligation is pledged.  Public hearings must be 
 13.10  held on issuance of the obligations by both the authority and 
 13.11  the general jurisdiction governmental unit.  The hearings must 
 13.12  be held at least 15 days, but not more than 120 days, before the 
 13.13  sale of the obligations. 
 13.14     (c) The maximum amount of general obligation bonds that may 
 13.15  be issued and outstanding under this section equals the greater 
 13.16  of (1) one-half of one percent of the taxable market value of 
 13.17  the general jurisdiction governmental unit whose general 
 13.18  obligation which includes a tax on property is pledged, or (2) 
 13.19  $3,000,000.  In the case of county or multicounty general 
 13.20  obligation bonds, the outstanding general obligation bonds of 
 13.21  all cities in the county or counties issued under this 
 13.22  subdivision must be added in calculating the limit under clause 
 13.23  (1). 
 13.24     (d) "General jurisdiction governmental unit" means the city 
 13.25  in which the housing development project is located.  In the 
 13.26  case of a county or multicounty authority, the county or 
 13.27  counties may act as the general jurisdiction governmental unit.  
 13.28  In the case of a multicounty authority, the pledge of the 
 13.29  general obligation is a pledge of a tax on the taxable property 
 13.30  in each of the counties. 
 13.31     (e) "Qualified housing development project" means a housing 
 13.32  development project providing housing either for the elderly or 
 13.33  for individuals and families with incomes not greater than 80 
 13.34  percent of the median family income as estimated by the United 
 13.35  States Department of Housing and Urban Development for the 
 13.36  standard metropolitan statistical area or the nonmetropolitan 
 14.1   county in which the project is located, and will.  The project 
 14.2   must be owned for the term of the bonds either by the authority 
 14.3   for the term of the bonds or by a limited partnership or other 
 14.4   entity in which the authority or another entity under the sole 
 14.5   control of the authority is the sole general partner and the 
 14.6   partnership or other entity must receive (i) an allocation from 
 14.7   the Department of Finance or an entitlement issuer of tax-exempt 
 14.8   bonding authority for the project and a preliminary 
 14.9   determination by the Minnesota Housing Finance Agency or the 
 14.10  applicable suballocator of tax credits that the project will 
 14.11  qualify for four percent low-income housing tax credits or (ii) 
 14.12  a reservation of nine percent low-income housing tax credits 
 14.13  from the Minnesota Housing Financing Agency or a suballocator of 
 14.14  tax credits for the project.  A qualified housing development 
 14.15  project may admit nonelderly individuals and families with 
 14.16  higher incomes if: 
 14.17     (1) three years have passed since initial occupancy; 
 14.18     (2) the authority finds the project is experiencing 
 14.19  unanticipated vacancies resulting in insufficient revenues, 
 14.20  because of changes in population or other unforeseen 
 14.21  circumstances that occurred after the initial finding of 
 14.22  adequate revenues; and 
 14.23     (3) the authority finds a tax levy or payment from general 
 14.24  assets of the general jurisdiction governmental unit will be 
 14.25  necessary to pay debt service on the bonds if higher income 
 14.26  individuals or families are not admitted. 
 14.27     [EFFECTIVE DATE.] This section is effective for bonds 
 14.28  issued after the day following final enactment. 
 14.29     Sec. 17.  Minnesota Statutes 2002, section 469.1813, 
 14.30  subdivision 1, is amended to read: 
 14.31     Subdivision 1.  [AUTHORITY.] The governing body of a 
 14.32  political subdivision may grant an abatement of the taxes 
 14.33  imposed by the political subdivision on a parcel of property, or 
 14.34  defer the payments of the taxes and abate the interest and 
 14.35  penalty that otherwise would apply, if: 
 14.36     (a) it expects the benefits to the political subdivision of 
 15.1   the proposed abatement agreement to at least equal the costs to 
 15.2   the political subdivision of the proposed agreement or intends 
 15.3   the abatement to phase in a property tax increase, as provided 
 15.4   in clause (b)(7); and 
 15.5      (b) it finds that doing so is in the public interest 
 15.6   because it will: 
 15.7      (1) increase or preserve tax base; 
 15.8      (2) provide employment opportunities in the political 
 15.9   subdivision; 
 15.10     (3) provide or help acquire or construct public facilities; 
 15.11     (4) help redevelop or renew blighted areas; 
 15.12     (5) help provide access to services for residents of the 
 15.13  political subdivision; 
 15.14     (6) finance or provide public infrastructure; or 
 15.15     (7) phase in a property tax increase on the parcel 
 15.16  resulting from an increase of 50 percent or more in one year on 
 15.17  the estimated market value of the parcel, other than increase 
 15.18  attributable to improvement of the parcel; or 
 15.19     (8) finance historic or heritage preservation. 
 15.20     Sec. 18.  Minnesota Statutes 2002, section 469.1813, 
 15.21  subdivision 6, is amended to read: 
 15.22     Subd. 6.  [DURATION LIMIT.] (a) A political subdivision may 
 15.23  grant an abatement for a period no longer than ten 15 years, 
 15.24  except as provided under paragraph (b).  The subdivision may 
 15.25  specify in the abatement resolution a shorter duration.  If the 
 15.26  resolution does not specify a period of time, the abatement is 
 15.27  for eight years.  If an abatement has been granted to a parcel 
 15.28  of property and the period of the abatement has expired, the 
 15.29  political subdivision that granted the abatement may not grant 
 15.30  another abatement for eight years after the expiration of the 
 15.31  first abatement.  This prohibition does not apply to 
 15.32  improvements added after and not subject to the first abatement. 
 15.33     (b) A political subdivision proposing to abate taxes for a 
 15.34  parcel may request, in writing, that the other political 
 15.35  subdivisions in which the parcel is located grant an abatement 
 15.36  for the property.  If one of the other political subdivisions 
 16.1   declines, in writing, to grant an abatement or if 90 days pass 
 16.2   after receipt of the request to grant an abatement without a 
 16.3   written response from one of the political subdivisions, the 
 16.4   duration limit for an abatement for the parcel by the requesting 
 16.5   political subdivision and any other participating political 
 16.6   subdivision is increased to 15 20 years.  If the political 
 16.7   subdivision which declined to grant an abatement later grants an 
 16.8   abatement for the parcel, the 15-year 20-year duration limit is 
 16.9   reduced by one year for each year that the declining political 
 16.10  subdivision grants an abatement for the parcel during the period 
 16.11  of the abatement granted by the requesting political 
 16.12  subdivision.  The duration limit may not be reduced below the 
 16.13  limit under paragraph (a).  
 16.14     [EFFECTIVE DATE.] This section is effective for abatement 
 16.15  resolutions approved after the day following final enactment. 
 16.16     Sec. 19.  Minnesota Statutes 2002, section 473.39, is 
 16.17  amended by adding a subdivision to read: 
 16.18     Subd. 1k.  [OBLIGATIONS.] After July 1, 2004, in addition 
 16.19  to the authority in subdivisions 1a, 1b, 1c, 1d, 1e, 1g, 1h, 1i, 
 16.20  and 1j, the council may issue certificates of indebtedness, 
 16.21  bonds, or other obligations under this section in an amount not 
 16.22  exceeding $32,000,000 for capital expenditures as prescribed in 
 16.23  the council's regional transit master plan and transit capital 
 16.24  improvement program and for related costs, including the costs 
 16.25  of issuance and sale of the obligations. 
 16.26     [EFFECTIVE DATE.] This section is effective the day 
 16.27  following final enactment and applies in the counties of Anoka, 
 16.28  Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 
 16.29     Sec. 20.  Minnesota Statutes 2002, section 473.446, 
 16.30  subdivision 1, is amended to read: 
 16.31     Subdivision 1.  [METROPOLITAN AREA TRANSIT TAX.] (a) For 
 16.32  the purposes of sections 473.405 to 473.449 and the metropolitan 
 16.33  transit system, except as otherwise provided in this 
 16.34  subdivision, the council shall levy each year upon all taxable 
 16.35  property within the metropolitan area, defined in section 
 16.36  473.121, subdivision 2, a transit tax consisting of: 
 17.1      (1) an amount necessary to provide full and timely payment 
 17.2   of certificates of indebtedness, bonds, including refunding 
 17.3   bonds or other obligations issued or to be issued under section 
 17.4   473.39 by the council for purposes of acquisition and betterment 
 17.5   of property and other improvements of a capital nature and to 
 17.6   which the council has specifically pledged tax levies under this 
 17.7   clause; and 
 17.8      (2) an additional amount necessary to provide full and 
 17.9   timely payment of certificates of indebtedness issued by the 
 17.10  council, after consultation with the commissioner of finance, if 
 17.11  revenues to the metropolitan area transit fund in the fiscal 
 17.12  year in which the indebtedness is issued increase over those 
 17.13  revenues in the previous fiscal year by a percentage less than 
 17.14  the percentage increase for the same period in the revised 
 17.15  Consumer Price Index for all urban consumers for the St. 
 17.16  Paul-Minneapolis metropolitan area prepared by the United States 
 17.17  Department of Labor.  The authority to levy a tax under this 
 17.18  clause applies only to certificates issued before July 1, 2004.  
 17.19     (b) Indebtedness to which property taxes have been pledged 
 17.20  under paragraph (a), clause (2), that is incurred in any fiscal 
 17.21  year may not exceed the amount necessary to make up the 
 17.22  difference between (1) the amount that the council received or 
 17.23  expects to receive in that fiscal year from the metropolitan 
 17.24  area transit fund and (2) the amount the council received from 
 17.25  that fund in the previous fiscal year multiplied by the 
 17.26  percentage increase for the same period in the revised Consumer 
 17.27  Price Index for all urban consumers for the St. Paul-Minneapolis 
 17.28  metropolitan area prepared by the United States Department of 
 17.29  Labor. 
 17.30     [EFFECTIVE DATE.] This section is effective July 1, 2004. 
 17.31     Sec. 21.  Minnesota Statutes 2002, section 474A.131, 
 17.32  subdivision 1, is amended to read: 
 17.33     Subdivision 1.  [NOTICE OF ISSUE.] Each issuer that issues 
 17.34  bonds with an allocation received under this chapter shall 
 17.35  provide a notice of issue to the department on forms provided by 
 17.36  the department stating: 
 18.1      (1) the date of issuance of the bonds; 
 18.2      (2) the title of the issue; 
 18.3      (3) the principal amount of the bonds; 
 18.4      (4) the type of qualified bonds under federal tax law; 
 18.5      (5) the dollar amount of the bonds issued that were subject 
 18.6   to the annual volume cap; and 
 18.7      (6) for entitlement issuers, whether the allocation is from 
 18.8   current year entitlement authority or is from carryforward 
 18.9   authority. 
 18.10     For obligations that are issued as a part of a series of 
 18.11  obligations, a notice must be provided for each series.  A 
 18.12  penalty of one-half of the amount of the application deposit not 
 18.13  to exceed $5,000 shall apply to any issue of obligations for 
 18.14  which a notice of issue is not provided to the department within 
 18.15  five business days after issuance or before the last Monday 4:30 
 18.16  p.m. on the last business day in December, whichever occurs 
 18.17  first.  Within 30 days after receipt of a notice of issue the 
 18.18  department shall refund a portion of the application deposit 
 18.19  equal to one percent of the amount of the bonding authority 
 18.20  actually issued if a one percent application deposit was made, 
 18.21  or equal to two percent of the amount of the bonding authority 
 18.22  actually issued if a two percent application deposit was made, 
 18.23  less any penalty amount. 
 18.24     Sec. 22.  Minnesota Statutes 2002, section 475.52, 
 18.25  subdivision 1, is amended to read: 
 18.26     Subdivision 1.  [STATUTORY CITIES.] Any statutory city may 
 18.27  issue bonds or other obligations for the acquisition or 
 18.28  betterment of public buildings, means of garbage disposal, 
 18.29  hospitals, nursing homes, homes for the aged, schools, 
 18.30  libraries, museums, art galleries, parks, playgrounds, stadia, 
 18.31  sewers, sewage disposal plants, subways, streets, sidewalks, 
 18.32  warning systems; for any utility or other public convenience 
 18.33  from which a revenue is or may be derived; for a permanent 
 18.34  improvement revolving fund; for changing, controlling or 
 18.35  bridging streams and other waterways; for the acquisition and 
 18.36  betterment of bridges and roads within two miles of the 
 19.1   corporate limits; for the acquisition of development rights in 
 19.2   the form of conservation easements under chapter 84C; and for 
 19.3   acquisition of equipment for snow removal, street construction 
 19.4   and maintenance, or fire fighting.  Without limitation by the 
 19.5   foregoing the city may issue bonds to provide money for any 
 19.6   authorized corporate purpose except current expenses. 
 19.7      Sec. 23.  Minnesota Statutes 2002, section 475.52, 
 19.8   subdivision 3, is amended to read: 
 19.9      Subd. 3.  [COUNTIES.] Any county may issue bonds for the 
 19.10  acquisition or betterment of courthouses, county administrative 
 19.11  buildings, health or social service facilities, correctional 
 19.12  facilities, law enforcement centers, jails, morgues, libraries, 
 19.13  parks, and hospitals, for roads and bridges within the county or 
 19.14  bordering thereon and for road equipment and machinery and for 
 19.15  ambulances and related equipment, for the acquisition of 
 19.16  development rights in the form of conservation easements under 
 19.17  chapter 84C, and for capital equipment for the administration 
 19.18  and conduct of elections providing the equipment is uniform 
 19.19  countywide, except that the power of counties to issue bonds in 
 19.20  connection with a library shall not exist in Hennepin County. 
 19.21     Sec. 24.  Minnesota Statutes 2002, section 475.52, 
 19.22  subdivision 4, is amended to read: 
 19.23     Subd. 4.  [TOWNS.] Any town may issue bonds for the 
 19.24  acquisition and betterment of town halls, town roads and 
 19.25  bridges, nursing homes and homes for the aged, and for 
 19.26  acquisition of equipment for snow removal, road construction or 
 19.27  maintenance, and fire fighting, for the acquisition of 
 19.28  development rights in the form of conservation easements under 
 19.29  chapter 84C, and for the acquisition and betterment of any 
 19.30  buildings to house and maintain town equipment. 
 19.31     Sec. 25.  Minnesota Statutes 2003 Supplement, section 
 19.32  475.521, subdivision 4, is amended to read: 
 19.33     Subd. 4.  [LIMITATIONS ON AMOUNT.] A city may not issue 
 19.34  bonds under this section if the maximum amount of principal and 
 19.35  interest to become due in any year on all the outstanding bonds 
 19.36  issued under this section, including the bonds to be issued, 
 20.1   will equal or exceed 0.05367 0.1 percent of taxable market value 
 20.2   of property in the county city.  Calculation of the limit must 
 20.3   be made using the taxable market value for the taxes payable 
 20.4   year in which the obligations are issued and sold.  This section 
 20.5   does not limit the authority to issue bonds under any other 
 20.6   special or general law. 
 20.7      Sec. 26.  Minnesota Statutes 2003 Supplement, section 
 20.8   475.58, subdivision 3b, is amended to read: 
 20.9      Subd. 3b.  [STREET RECONSTRUCTION.] (a) A municipality may, 
 20.10  without regard to the election requirement under subdivision 1, 
 20.11  issue and sell obligations for street reconstruction, if the 
 20.12  following conditions are met: 
 20.13     (1) the streets are reconstructed under a street 
 20.14  reconstruction plan that describes the streets to be 
 20.15  reconstructed, the estimated costs, and any planned 
 20.16  reconstruction of other streets in the municipality over the 
 20.17  next five years, and the plan and issuance of the obligations 
 20.18  has been approved by a vote of all of the members of the 
 20.19  governing body following a public hearing for which notice has 
 20.20  been published in the official newspaper at least ten days but 
 20.21  not more than 28 days prior to the hearing; and 
 20.22     (2) if a petition requesting a vote on the issuance is 
 20.23  signed by voters equal to five percent of the votes cast in the 
 20.24  last municipal general election and is filed with the municipal 
 20.25  clerk within 30 days of the public hearing, the municipality may 
 20.26  issue the bonds only after obtaining the approval of a majority 
 20.27  of the voters voting on the question of the issuance of the 
 20.28  obligations. 
 20.29     (b) Obligations issued under this subdivision are subject 
 20.30  to the debt limit of the municipality and are not excluded from 
 20.31  net debt under section 475.51, subdivision 4. 
 20.32     (c) For purposes of this subdivision, street reconstruction 
 20.33  includes utility replacement and relocation and other activities 
 20.34  incidental to the street reconstruction, but turn lanes, other 
 20.35  improvements having a substantial public safety function and 
 20.36  realignments, and other modifications to intersect with state 
 21.1   and county roads. 
 21.2      (d) Except in the case of turn lanes, safety improvements, 
 21.3   and intersection modifications, street reconstruction does not 
 21.4   include the portion of project cost allocable to widening a 
 21.5   street or adding curbs and gutters where none previously existed.
 21.6      Sec. 27.  Laws 2003, chapter 127, article 12, section 38, 
 21.7   is amended to read: 
 21.8      Sec. 38.  [MEMBERS MUST AUTHORITY TO LEVY TAXES FOR 
 21.9   AUTHORITY.] 
 21.10     (a) A member shall, at the request of the authority, levy a 
 21.11  tax in any year for the benefit of the authority.  The authority 
 21.12  is a special taxing district as defined in Minnesota Statutes, 
 21.13  section 275.066, clause (13), with the power to adopt and 
 21.14  certify a property tax levy to the county auditor.  The 
 21.15  authority may levy a tax in any year for the benefit of the 
 21.16  authority.  The tax is, for each member, a pro rata portion of 
 21.17  the total amount of tax requested by the authority based on the 
 21.18  taxable market value within a member's jurisdiction, but in no 
 21.19  event may the tax in any year not exceed in any year 0.01813 
 21.20  percent of the total taxable market value of the authority.  For 
 21.21  purposes of this section, "taxable market value" has the meaning 
 21.22  as given in Minnesota Statutes, section 273.032.  The tax levied 
 21.23  under this section shall be separately stated on the property 
 21.24  tax statement under Minnesota Statutes, section 276.04, 
 21.25  subdivision 2. 
 21.26     (b) The treasurer of each member city or town shall, within 
 21.27  15 days after receiving the property tax settlements from the 
 21.28  county treasurer, pay to the treasurer of the authority the 
 21.29  amount collected for this purpose.  The money must be used by 
 21.30  the authority for the purposes provided by sections 35 to 41. 
 21.31     [EFFECTIVE DATE.] This section is effective for taxes 
 21.32  levied in 2004, payable in 2005, and thereafter. 
 21.33     Sec. 28.  [AITKIN DRAINAGE AND CONSERVANCY DISTRICT.] 
 21.34     Notwithstanding Laws 1987, chapter 239, sections 139 and 
 21.35  140, the Aitkin Drainage and Conservancy District is 
 21.36  reestablished pursuant to Minnesota Statutes 1986, chapter 111, 
 22.1   for the purpose of maintaining the Mississippi River diversion 
 22.2   channel.  This district expires December 31, 2008.  
 22.3      [EFFECTIVE DATE.] This section is effective the day 
 22.4   following final enactment and expires December 31, 2008. 
 22.5      Sec. 29.  [DEFINITIONS.] 
 22.6      Subdivision 1.  [APPLICATION.] For the purposes of sections 
 22.7   29 to 32, the terms defined in this section have the meanings 
 22.8   given them. 
 22.9      Subd. 2.  [CITY.] "City" means the city of St. Paul, its 
 22.10  mayor, city council, and any other board, authority, commission, 
 22.11  or officer authorized by law, charter, or ordinance to exercise 
 22.12  city powers of the nature referred to in sections 29 to 32. 
 22.13     Subd. 3.  [RIVERCENTRE COMPLEX.] "RiverCentre complex" 
 22.14  means collectively the auditorium, convention, conference and 
 22.15  education center, arena, and parking ramp facilities presently 
 22.16  and commonly known as the Roy Wilkins Auditorium, St. Paul 
 22.17  RiverCentre, Xcel Energy Center, and RiverCentre Parking Ramp, 
 22.18  including all property, real or personal, tangible or 
 22.19  intangible, located in the city, intended to be used as part of 
 22.20  the RiverCentre complex or additions to or extensions of it. 
 22.21     Sec. 30.  [ST. PAUL; CREATION OF NONPROFIT ORGANIZATION.] 
 22.22     Subdivision 1.  [AUTHORITY TO CREATE A NONPROFIT 
 22.23  ORGANIZATION.] As required under Minnesota Statutes, section 
 22.24  465.717, and notwithstanding any other law, city charter 
 22.25  provision, or ordinance to the contrary, the city of St. Paul 
 22.26  may participate in the creation of a nonprofit organization for 
 22.27  the purposes provided in sections 29 to 32. 
 22.28     Subd. 2.  [GOVERNING BOARD; APPOINTMENT PROCESS.] (a) The 
 22.29  mayor of the city, subject to approval by the city council, 
 22.30  shall appoint a majority of the members of the governing board 
 22.31  of the nonprofit organization performing all or a part of the 
 22.32  activities necessary to carry out the purposes specified in 
 22.33  sections 29 to 32.  The mayor of the city may designate any 
 22.34  officer or employee of the city to serve as a member of the 
 22.35  governing board of any nonprofit organization. 
 22.36     (b) In addition to the appointments made by the mayor under 
 23.1   paragraph (a), the mayor of the city shall designate two members 
 23.2   of the city council to serve on the governing board of the 
 23.3   nonprofit organization. 
 23.4      (c) Notwithstanding any provision contained in the articles 
 23.5   of incorporation and bylaws of the nonprofit organization, any 
 23.6   member of the governing board appointed by the mayor may be 
 23.7   removed only by the mayor of the city. 
 23.8      Subd. 3.  [PRESIDENT.] The governing board of the nonprofit 
 23.9   organization shall select, subject to the approval of the mayor 
 23.10  of the city, a president to serve as chief executive officer and 
 23.11  general manager of the nonprofit organization. 
 23.12     Subd. 4.  [CONFLICTS OF INTEREST.] The procedures in 
 23.13  Minnesota Statutes, section 317A.255, subdivision 1, paragraph 
 23.14  (b), relating to director conflicts of interest, are not 
 23.15  required if the contract or other transaction is between the 
 23.16  city and the nonprofit organization. 
 23.17     Sec. 31.  [RIVERCENTRE MANAGEMENT; OPERATIONS CONTRACT.] 
 23.18     Subdivision 1.  [AUTHORITY TO CONTRACT WITH NONPROFIT 
 23.19  ORGANIZATION.] The city may enter into an agreement with the 
 23.20  nonprofit organization created in section 30 to equip, maintain, 
 23.21  manage, and operate all or a portion of the RiverCentre complex 
 23.22  and to manage and operate a convention bureau to market and 
 23.23  promote the city as a tourist or convention center.  Except as 
 23.24  otherwise provided in sections 29 to 32, the nonprofit 
 23.25  organization may only contract and utilize and expend funds for 
 23.26  these purposes under the direction of its governing board, 
 23.27  subject to the accounting, financial reporting, and other 
 23.28  conditions that the city may prescribe in a contract made under 
 23.29  sections 29 to 32 between the city and the nonprofit 
 23.30  organization.  The nonprofit organization may use the services 
 23.31  of the office of the city attorney and the city's purchasing 
 23.32  department.  All activities performed to carry out these 
 23.33  purposes are deemed to be for a public purpose. 
 23.34     Subd. 2.  [BONDHOLDERS' RIGHTS AND RIVERCENTRE COMPLEX TAX 
 23.35  EXEMPTIONS PRESERVED.] (a) The city must protect the rights of 
 23.36  holders of bonds issued for the RiverCentre complex, including 
 24.1   preserving the tax-exempt status of the bonds. 
 24.2      (b) The use and operation of the RiverCentre complex by the 
 24.3   nonprofit organization with which the city contracts under 
 24.4   sections 29 to 32 is a use, lease, or occupancy for public, 
 24.5   governmental, and municipal purposes, and the complex is exempt 
 24.6   from taxation by the state or any political subdivision of the 
 24.7   state during such use, to the extent it would be exempt if the 
 24.8   complex was equipped, maintained, managed, and operated by the 
 24.9   city. 
 24.10     (c) Gross receipts of tickets and admissions to events at 
 24.11  the RiverCentre complex sponsored by the nonprofit organization 
 24.12  created in section 30 do not qualify for the sales tax exemption 
 24.13  under Minnesota Statutes, section 297A.70, subdivision 10. 
 24.14     Subd. 3.  [APPLICABLE GENERAL LAWS.] The following statutes 
 24.15  apply to the nonprofit organization with which the city 
 24.16  contracts under sections 29 to 32 the same as they apply to the 
 24.17  city, to the extent practicable: 
 24.18     (a) Minnesota Statutes, chapter 13D, the Minnesota Open 
 24.19  Meeting Law; and 
 24.20     (b) Minnesota Statutes, chapter 13, the Government Data 
 24.21  Practices Act. 
 24.22     Subd. 4.  [SUCCESSION.] The nonprofit organization with 
 24.23  which the city contracts under sections 29 to 32 is the 
 24.24  successor to all powers, rights, assets, privileges, and 
 24.25  interests held and enjoyed by the RiverCentre authority on the 
 24.26  effective date of sections 29 to 32, and established by the 
 24.27  provisions of Laws 1967, chapter 459, sections 1, 2, 4, and 8, 
 24.28  subdivisions 2 and 3, clause (3), as amended; Laws 1982, chapter 
 24.29  523, article 25, sections 4 and 5, as amended; Laws 1998, 
 24.30  chapter 404, sections 81 and 82; and Minnesota Statutes, section 
 24.31  297A.98.  On the effective date of the contract between the city 
 24.32  and the nonprofit organization authorized by sections 29 to 32, 
 24.33  the RiverCentre authority ceases to exist for only so long as 
 24.34  the contract is in effect, and all other laws or provisions 
 24.35  specifically relating to the RiverCentre authority and the 
 24.36  RiverCentre complex that are not otherwise referenced in 
 25.1   sections 29 to 32 do not apply to the nonprofit organization. 
 25.2      Sec. 32.  [LIABILITY.] 
 25.3      The nonprofit organization with which the city contracts 
 25.4   under sections 29 to 32 is a "municipality," and the officers, 
 25.5   directors, employees, and agents of the nonprofit organization 
 25.6   are "employees, officers, or agents," under Minnesota Statutes, 
 25.7   chapter 466, relating to tort liability.  The city must defend, 
 25.8   save harmless, and indemnify the nonprofit organization, 
 25.9   including the nonprofit's officers, directors, employees, and 
 25.10  agents, against any claim or demand arising out of the nonprofit 
 25.11  organization's performance under the contract. 
 25.12     Sec. 33.  [FAIRMONT; ABATEMENT AUTHORITY.] 
 25.13     The city of Fairmont, Martin County, and Independent School 
 25.14  District No. 2752, Fairmont Area Schools, may each grant an 
 25.15  abatement under Minnesota Statutes, sections 469.1812 to 
 25.16  469.1815, for property located in tax increment financing 
 25.17  district No. 20 in the city of Fairmont, notwithstanding any law 
 25.18  to the contrary.  The total amount of the abatement for each 
 25.19  political subdivision may not exceed the taxes paid by the 
 25.20  original tax capacity of the district No. 20 for each year of 
 25.21  its existence.  Notwithstanding Minnesota Statutes, section 
 25.22  471.87, or any other law governing conflicts of interest, a 
 25.23  local elected official may have a financial interest in and 
 25.24  benefit from the tax abatement authorized in this section if the 
 25.25  official discloses the interest and potential benefit on the 
 25.26  record, and abstains from voting on the matter. 
 25.27     Sec. 34.  [TRANSFER OF BOND ALLOCATION AUTHORITY.] 
 25.28     Notwithstanding Minnesota Statutes, section 474A.03, 
 25.29  subdivision 2a, paragraph (b), the Minnesota Housing Finance 
 25.30  Agency may enter into an agreement with the Higher Education 
 25.31  Services Office whereby the Higher Education Services Office 
 25.32  issues qualified student loan bonds, up to $50,000,000 of which 
 25.33  are issued pursuant to bonding authority allocated to the 
 25.34  Minnesota Housing Finance Agency in 2004 under Minnesota 
 25.35  Statutes, section 474A.03, subdivision 2a, paragraph (a).  This 
 25.36  amount is in addition to the bonding authority otherwise 
 26.1   allocated to the Higher Education Services Office under 
 26.2   Minnesota Statutes, chapter 474A.  Notwithstanding Minnesota 
 26.3   Statutes, section 474A.04, subdivision 1a; 474A.061; or 
 26.4   474A.091, subdivision 2, bonding authority carried forward by 
 26.5   the Minnesota Housing Finance Agency from its allocation in 2004 
 26.6   under Minnesota Statutes, section 474A.03, subdivision 2a, 
 26.7   paragraph (b), is exempt from the requirement that the bonding 
 26.8   authority be permanently issued by December 31 of the next 
 26.9   succeeding calendar year. 
 26.10     Sec. 35.  [EFFECTIVE DATE.] 
 26.11     (a) Except as otherwise specifically provided, this act is 
 26.12  effective the day following final enactment. 
 26.13     (b) Sections 29 to 32 are effective the day after the city 
 26.14  council and the chief clerical officer of the city of St. Paul 
 26.15  have timely completed their compliance with Minnesota Statutes, 
 26.16  section 645.023, subdivisions 2 and 3.