HF 3081

as introduced - 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            amending Minnesota Statutes 2002, sections 428A.101; 
  1.13            428A.21; 469.034, subdivision 2; 474A.131, subdivision 
  1.14            1; 475.52, subdivisions 1, 3, 4; Minnesota Statutes 
  1.15            2003 Supplement, sections 373.01, subdivision 3; 
  1.16            373.40, subdivision 1; 410.32; 412.301; 475.521, 
  1.17            subdivision 4; 475.58, subdivision 3b. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19     Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.20  373.01, subdivision 3, is amended to read: 
  1.21     Subd. 3.  [CAPITAL NOTES.] (a) A county board may, by 
  1.22  resolution and without referendum, issue capital notes subject 
  1.23  to the county debt limit to purchase capital equipment useful 
  1.24  for county purposes that has an expected useful life at least 
  1.25  equal to the term of the notes.  The notes shall be payable in 
  1.26  not more than five years and shall be issued on terms and in a 
  1.27  manner the board determines.  A tax levy shall be made for 
  1.28  payment of the principal and interest on the notes, in 
  1.29  accordance with section 475.61, as in the case of bonds. 
  1.30     (b) For purposes of this subdivision, "capital equipment" 
  1.31  means: 
  2.1      (1) public safety, ambulance, road construction or 
  2.2   maintenance, and medical equipment,; and 
  2.3      (2) computer hardware and original operating system 
  2.4   software, whether bundled with machinery or equipment or 
  2.5   unbundled, together with application development services and 
  2.6   training related to the use of the computer. 
  2.7      (c) The authority to issue capital notes for original 
  2.8   operating systems software expires on July 1, 2005. 
  2.9      Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  2.10  373.40, subdivision 1, is amended to read: 
  2.11     Subdivision 1.  [DEFINITIONS.] For purposes of this 
  2.12  section, the following terms have the meanings given. 
  2.13     (a) "Bonds" means an obligation as defined under section 
  2.14  475.51. 
  2.15     (b) "Capital improvement" means acquisition or betterment 
  2.16  of public lands, development rights in the form of conservation 
  2.17  easements under chapter 84C, buildings, or other improvements 
  2.18  within the county for the purpose of a county courthouse, 
  2.19  administrative building, health or social service facility, 
  2.20  correctional facility, jail, law enforcement center, hospital, 
  2.21  morgue, library, park, qualified indoor ice arena, and roads and 
  2.22  bridges, and the acquisition of development rights in the form 
  2.23  of conservation easements under chapter 84C.  An improvement 
  2.24  must have an expected useful life of five years or more to 
  2.25  qualify.  "Capital improvement" does not include light rail 
  2.26  transit or any activity related to it or a recreation or sports 
  2.27  facility building (such as, but not limited to, a gymnasium, ice 
  2.28  arena, racquet sports facility, swimming pool, exercise room or 
  2.29  health spa), unless the building is part of an outdoor park 
  2.30  facility and is incidental to the primary purpose of outdoor 
  2.31  recreation. 
  2.32     (c) "Commissioner" means the commissioner of employment and 
  2.33  economic development. 
  2.34     (d) "Metropolitan county" means a county located in the 
  2.35  seven-county metropolitan area as defined in section 473.121 or 
  2.36  a county with a population of 90,000 or more. 
  3.1      (e) "Population" means the population established by the 
  3.2   most recent of the following (determined as of the date the 
  3.3   resolution authorizing the bonds was adopted): 
  3.4      (1) the federal decennial census, 
  3.5      (2) a special census conducted under contract by the United 
  3.6   States Bureau of the Census, or 
  3.7      (3) a population estimate made either by the metropolitan 
  3.8   council or by the state demographer under section 4A.02. 
  3.9      (f) "Qualified indoor ice arena" means a facility that 
  3.10  meets the requirements of section 373.43. 
  3.11     (g) "Tax capacity" means total taxable market value, but 
  3.12  does not include captured market value. 
  3.13     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
  3.14  410.32, is amended to read: 
  3.15     410.32 [CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL 
  3.16  EQUIPMENT.] 
  3.17     (a) Notwithstanding any contrary provision of other law or 
  3.18  charter, a home rule charter city may, by resolution and without 
  3.19  public referendum, issue capital notes subject to the city debt 
  3.20  limit to purchase capital equipment. 
  3.21     (b) For purposes of this section, "capital equipment" means:
  3.22     (1) public safety equipment, ambulance and other medical 
  3.23  equipment, road construction and maintenance equipment, and 
  3.24  other capital equipment; and 
  3.25     (2) computer hardware and original operating system 
  3.26  software, provided whether bundled with machinery or equipment 
  3.27  or unbundled, together with application development services and 
  3.28  training related to the use of the computer. 
  3.29     (c) The equipment or software has must have an expected 
  3.30  useful life at least as long as the term of the notes. 
  3.31     (d) The authority to issue capital notes for original 
  3.32  operating system software expires on July 1, 2005. 
  3.33     (e) The notes shall be payable in not more than five years 
  3.34  and be issued on terms and in the manner the city determines.  
  3.35  The total principal amount of the capital notes issued in a 
  3.36  fiscal year shall not exceed 0.03 percent of the market value of 
  4.1   taxable property in the city for that year. 
  4.2      (f) A tax levy shall be made for the payment of the 
  4.3   principal and interest on the notes, in accordance with section 
  4.4   475.61, as in the case of bonds. 
  4.5      (g) Notes issued under this section shall require an 
  4.6   affirmative vote of two-thirds of the governing body of the city.
  4.7      (h) Notwithstanding a contrary provision of other law or 
  4.8   charter, a home rule charter city may also issue capital notes 
  4.9   subject to its debt limit in the manner and subject to the 
  4.10  limitations applicable to statutory cities pursuant to section 
  4.11  412.301. 
  4.12     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
  4.13  412.301, is amended to read: 
  4.14     412.301 [FINANCING PURCHASE OF CERTAIN EQUIPMENT.] 
  4.15     (a) The council may issue certificates of indebtedness or 
  4.16  capital notes subject to the city debt limits to 
  4.17  purchase capital equipment. 
  4.18     (b) For purposes of this section, "capital equipment" means:
  4.19     (1) public safety equipment, ambulance and other medical 
  4.20  equipment, road construction or and maintenance equipment, and 
  4.21  other capital equipment; and 
  4.22     (2) computer hardware and original operating system 
  4.23  software, provided whether bundled with machinery or equipment 
  4.24  or unbundled, together with application development services and 
  4.25  training related to the use of the computer.  
  4.26     (c) The equipment or software has must have an expected 
  4.27  useful life at least as long as the terms of the certificates or 
  4.28  notes. 
  4.29     (d) The authority to issue capital notes for original 
  4.30  operating system software expires on July 1, 2005. 
  4.31     (e) Such certificates or notes shall be payable in not more 
  4.32  than five years and shall be issued on such terms and in such 
  4.33  manner as the council may determine. 
  4.34     (f) If the amount of the certificates or notes to be issued 
  4.35  to finance any such purchase exceeds 0.25 percent of the market 
  4.36  value of taxable property in the city, they shall not be issued 
  5.1   for at least ten days after publication in the official 
  5.3   newspaper of a council resolution determining to issue them; and 
  5.4   if before the end of that time, a petition asking for an 
  5.5   election on the proposition signed by voters equal to ten 
  5.6   percent of the number of voters at the last regular municipal 
  5.7   election is filed with the clerk, such certificates or notes 
  5.8   shall not be issued until the proposition of their issuance has 
  5.9   been approved by a majority of the votes cast on the question at 
  5.10  a regular or special election. 
  5.11     (g) A tax levy shall be made for the payment of the 
  5.12  principal and interest on such certificates or notes, in 
  5.13  accordance with section 475.61, as in the case of bonds. 
  5.14     Sec. 5.  Minnesota Statutes 2002, section 428A.101, is 
  5.15  amended to read: 
  5.16     428A.101 [SPECIAL SERVICE DISTRICT; SUNSET OF 
  5.17  SELF-EXECUTING PROVISIONS.] 
  5.18     The establishment of a new special service district after 
  5.19  June 30, 2005 2009, requires enactment of a special law 
  5.20  authorizing the establishment. 
  5.21     Sec. 6.  Minnesota Statutes 2002, section 428A.21, is 
  5.22  amended to read: 
  5.23     428A.21 [SUNSET.] 
  5.24     No new housing improvement areas may be established under 
  5.25  sections 428A.11 to 428A.20 after June 30, 2005 2009.  After 
  5.26  June 30, 2005 2009, a city may establish a housing improvement 
  5.27  area, provided that it receives enabling legislation authorizing 
  5.28  the establishment of the area. 
  5.29     Sec. 7.  Minnesota Statutes 2002, section 469.034, 
  5.30  subdivision 2, is amended to read: 
  5.31     Subd. 2.  [GENERAL OBLIGATION REVENUE BONDS.] (a) An 
  5.32  authority may pledge the general obligation of the general 
  5.33  jurisdiction governmental unit as additional security for bonds 
  5.34  payable from income or revenues of the project or the 
  5.35  authority.  The authority must find that the pledged revenues 
  5.36  will equal or exceed 110 percent of the principal and interest 
  5.37  due on the bonds for each year.  The proceeds of the bonds must 
  6.1   be used for a qualified housing development project or 
  6.2   projects.  The obligations must be issued and sold in the manner 
  6.3   and following the procedures provided by chapter 475, except the 
  6.4   obligations are not subject to approval by the electors, and the 
  6.5   maturities may extend to not more than 30 40 years from the 
  6.6   estimated date of completion of the project.  The authority is 
  6.7   the municipality for purposes of chapter 475.  
  6.8      (b) The principal amount of the issue must be approved by 
  6.9   the governing body of the general jurisdiction governmental unit 
  6.10  whose general obligation is pledged.  Public hearings must be 
  6.11  held on issuance of the obligations by both the authority and 
  6.12  the general jurisdiction governmental unit.  The hearings must 
  6.13  be held at least 15 days, but not more than 120 days, before the 
  6.14  sale of the obligations. 
  6.15     (c) The maximum amount of general obligation bonds that may 
  6.16  be issued and outstanding under this section equals the greater 
  6.17  of (1) one-half of one percent of the taxable market value of 
  6.18  the general jurisdiction governmental unit whose general 
  6.19  obligation which includes a tax on property is pledged, or (2) 
  6.20  $3,000,000.  In the case of county or multicounty general 
  6.21  obligation bonds, the outstanding general obligation bonds of 
  6.22  all cities in the county or counties issued under this 
  6.23  subdivision must be added in calculating the limit under clause 
  6.24  (1). 
  6.25     (d) "General jurisdiction governmental unit" means the city 
  6.26  in which the housing development project is located.  In the 
  6.27  case of a county or multicounty authority, the county or 
  6.28  counties may act as the general jurisdiction governmental unit.  
  6.29  In the case of a multicounty authority, the pledge of the 
  6.30  general obligation is a pledge of a tax on the taxable property 
  6.31  in each of the counties. 
  6.32     (e) "Qualified housing development project" means a housing 
  6.33  development project providing housing either for the elderly or 
  6.34  for individuals and families with incomes not greater than 80 
  6.35  percent of the median family income as estimated by the United 
  6.36  States Department of Housing and Urban Development for the 
  7.1   standard metropolitan statistical area or the nonmetropolitan 
  7.2   county in which the project is located, and will be owned by the 
  7.3   authority for the term of the bonds.  A qualified housing 
  7.4   development project may admit nonelderly individuals and 
  7.5   families with higher incomes if: 
  7.6      (1) three years have passed since initial occupancy; 
  7.7      (2) the authority finds the project is experiencing 
  7.8   unanticipated vacancies resulting in insufficient revenues, 
  7.9   because of changes in population or other unforeseen 
  7.10  circumstances that occurred after the initial finding of 
  7.11  adequate revenues; and 
  7.12     (3) the authority finds a tax levy or payment from general 
  7.13  assets of the general jurisdiction governmental unit will be 
  7.14  necessary to pay debt service on the bonds if higher income 
  7.15  individuals or families are not admitted. 
  7.16     Sec. 8.  Minnesota Statutes 2002, section 474A.131, 
  7.17  subdivision 1, is amended to read: 
  7.18     Subdivision 1.  [NOTICE OF ISSUE.] Each issuer that issues 
  7.19  bonds with an allocation received under this chapter shall 
  7.20  provide a notice of issue to the department on forms provided by 
  7.21  the department stating: 
  7.22     (1) the date of issuance of the bonds; 
  7.23     (2) the title of the issue; 
  7.24     (3) the principal amount of the bonds; 
  7.25     (4) the type of qualified bonds under federal tax law; 
  7.26     (5) the dollar amount of the bonds issued that were subject 
  7.27  to the annual volume cap; and 
  7.28     (6) for entitlement issuers, whether the allocation is from 
  7.29  current year entitlement authority or is from carryforward 
  7.30  authority. 
  7.31     For obligations that are issued as a part of a series of 
  7.32  obligations, a notice must be provided for each series.  A 
  7.33  penalty of one-half of the amount of the application deposit not 
  7.34  to exceed $5,000 shall apply to any issue of obligations for 
  7.35  which a notice of issue is not provided to the department within 
  7.36  five business days after issuance or before the last Monday 4:30 
  8.1   p.m. on the last business day in December, whichever occurs 
  8.2   first.  Within 30 days after receipt of a notice of issue the 
  8.3   department shall refund a portion of the application deposit 
  8.4   equal to one percent of the amount of the bonding authority 
  8.5   actually issued if a one percent application deposit was made, 
  8.6   or equal to two percent of the amount of the bonding authority 
  8.7   actually issued if a two percent application deposit was made, 
  8.8   less any penalty amount. 
  8.9      Sec. 9.  Minnesota Statutes 2002, section 475.52, 
  8.10  subdivision 1, is amended to read: 
  8.11     Subdivision 1.  [STATUTORY CITIES.] Any statutory city may 
  8.12  issue bonds or other obligations for the acquisition or 
  8.13  betterment of public buildings, means of garbage disposal, 
  8.14  hospitals, nursing homes, homes for the aged, schools, 
  8.15  libraries, museums, art galleries, parks, playgrounds, stadia, 
  8.16  sewers, sewage disposal plants, subways, streets, sidewalks, 
  8.17  warning systems; for any utility or other public convenience 
  8.18  from which a revenue is or may be derived; for a permanent 
  8.19  improvement revolving fund; for changing, controlling or 
  8.20  bridging streams and other waterways; for the acquisition and 
  8.21  betterment of bridges and roads within two miles of the 
  8.22  corporate limits; for the acquisition of development rights in 
  8.23  the form of conservation easements under chapter 84C; and for 
  8.24  acquisition of equipment for snow removal, street construction 
  8.25  and maintenance, or fire fighting.  Without limitation by the 
  8.26  foregoing the city may issue bonds to provide money for any 
  8.27  authorized corporate purpose except current expenses. 
  8.28     Sec. 10.  Minnesota Statutes 2002, section 475.52, 
  8.29  subdivision 3, is amended to read: 
  8.30     Subd. 3.  [COUNTIES.] Any county may issue bonds for the 
  8.31  acquisition or betterment of courthouses, county administrative 
  8.32  buildings, health or social service facilities, correctional 
  8.33  facilities, law enforcement centers, jails, morgues, libraries, 
  8.34  parks, and hospitals, for roads and bridges within the county or 
  8.35  bordering thereon and for road equipment and machinery and for 
  8.36  ambulances and related equipment, for the acquisition of 
  9.1   development rights in the form of conservation easements under 
  9.2   chapter 84C, and for capital equipment for the administration 
  9.3   and conduct of elections providing the equipment is uniform 
  9.4   countywide, except that the power of counties to issue bonds in 
  9.5   connection with a library shall not exist in Hennepin County. 
  9.6      Sec. 11.  Minnesota Statutes 2002, section 475.52, 
  9.7   subdivision 4, is amended to read: 
  9.8      Subd. 4.  [TOWNS.] Any town may issue bonds for the 
  9.9   acquisition and betterment of town halls, town roads and 
  9.10  bridges, nursing homes and homes for the aged, and for 
  9.11  acquisition of equipment for snow removal, road construction or 
  9.12  maintenance, and fire fighting, for the acquisition of 
  9.13  development rights in the form of conservation easements under 
  9.14  chapter 84C, and for the acquisition and betterment of any 
  9.15  buildings to house and maintain town equipment. 
  9.16     Sec. 12.  Minnesota Statutes 2003 Supplement, section 
  9.17  475.521, subdivision 4, is amended to read: 
  9.18     Subd. 4.  [LIMITATIONS ON AMOUNT.] A city may not issue 
  9.19  bonds under this section if the maximum amount of principal and 
  9.20  interest to become due in any year on all the outstanding bonds 
  9.21  issued under this section, including the bonds to be issued, 
  9.22  will equal or exceed 0.05367 0.16 percent of taxable market 
  9.23  value of property in the county city.  Calculation of the limit 
  9.24  must be made using the taxable market value for the taxes 
  9.25  payable year in which the obligations are issued and sold.  This 
  9.26  section does not limit the authority to issue bonds under any 
  9.27  other special or general law. 
  9.28     Sec. 13.  Minnesota Statutes 2003 Supplement, section 
  9.29  475.58, subdivision 3b, is amended to read: 
  9.30     Subd. 3b.  [STREET RECONSTRUCTION.] (a) A municipality may, 
  9.31  without regard to the election requirement under subdivision 1, 
  9.32  issue and sell obligations for street reconstruction, if the 
  9.33  following conditions are met: 
  9.34     (1) the streets are reconstructed under a street 
  9.35  reconstruction plan that describes the streets to be 
  9.36  reconstructed, the estimated costs, and any planned 
 10.1   reconstruction of other streets in the municipality over the 
 10.2   next five years, and the plan and issuance of the obligations 
 10.3   has been approved by a vote of all of the members of the 
 10.4   governing body following a public hearing for which notice has 
 10.5   been published in the official newspaper at least ten days but 
 10.6   not more than 28 days prior to the hearing; and 
 10.7      (2) if a petition requesting a vote on the issuance is 
 10.8   signed by voters equal to five percent of the votes cast in the 
 10.9   last municipal general election and is filed with the municipal 
 10.10  clerk within 30 days of the public hearing, the municipality may 
 10.11  issue the bonds only after obtaining the approval of a majority 
 10.12  of the voters voting on the question of the issuance of the 
 10.13  obligations. 
 10.14     (b) Obligations issued under this subdivision are subject 
 10.15  to the debt limit of the municipality and are not excluded from 
 10.16  net debt under section 475.51, subdivision 4. 
 10.17     (c) For purposes of this subdivision, street reconstruction 
 10.18  includes utility replacement and relocation and other activities 
 10.19  incidental to the street reconstruction, but turn lanes, and 
 10.20  other improvements having a substantial public safety function 
 10.21  and realignments, other modifications to intersect with state 
 10.22  and county roads, and the local share of state and county road 
 10.23  projects. 
 10.24     (d) Except in the case of turn lanes, safety improvements, 
 10.25  intersection modifications, and the local share of state and 
 10.26  county road projects, street reconstruction does not include the 
 10.27  portion of project cost allocable to widening a street or adding 
 10.28  curbs and gutters where none previously existed. 
 10.29     Sec. 14.  [EFFECTIVE DATE.] 
 10.30     This act is effective the day following final enactment.