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HF 3236

1st Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
  1.1                          A bill for an act
  1.2             relating to public utilities; modifying provisions 
  1.3             relating to dry cask storage of nuclear waste; 
  1.4             exempting certain property from taxation; amending 
  1.5             Minnesota Statutes 1994, section 116C.771; Minnesota 
  1.6             Statutes 1995 Supplement, section 272.02, subdivision 
  1.7             1; repealing Minnesota Statutes 1994, section 116C.80. 
  1.9      Section 1.  Minnesota Statutes 1994, section 116C.771, is 
  1.10  amended to read: 
  1.12     (a) Five casks may be filled and used at Prairie Island on 
  1.13  May 11, 1994.  
  1.14     (b) An additional four casks may be filled and used at 
  1.15  Prairie Island if the environmental quality board determines 
  1.16  that, by December 31, 1996, the public utility operating the 
  1.17  Prairie Island plant has filed a license application with the 
  1.18  United States Nuclear Regulatory Commission for a spent nuclear 
  1.19  fuel storage facility off of Prairie Island in Goodhue county, 
  1.20  is continuing to make a good faith effort to implement the site, 
  1.21  and has constructed, contracted for construction and operation, 
  1.22  or purchased installed capacity of 100 megawatts of wind power 
  1.23  in addition to wind power under construction or contract on the 
  1.24  effective date of this section. 
  1.25     (c)(1) An additional eight casks may be filled and placed 
  1.26  at Prairie Island if the legislature has not revoked the 
  2.1   authorization under clause (2) or the public utility has 
  2.2   satisfied the wind power and biomass mandate requirements in 
  2.3   sections 216B.2423, subdivision 1, clause (1), and 216B.2424, 
  2.4   clause (1), and the alternative site in Goodhue county is 
  2.5   operational or under construction.  (2) If the site is not under 
  2.6   construction or operational or the.  If these wind and biomass 
  2.7   mandates are not satisfied, the legislature may revoke the 
  2.8   authorization for the additional eight casks by a law enacted 
  2.9   prior to June 1, 1999. 
  2.10     (d) Except as provided under paragraph (e), dry cask 
  2.11  storage capacity for high-level nuclear waste within the state 
  2.12  may not be increased beyond the casks authorized by section 
  2.13  116C.77 or their equivalent storage capacity. 
  2.14     (e) This section does not prohibit a public utility from 
  2.15  applying for or the public utilities commission from granting a 
  2.16  certificate of need for dry cask storage to accommodate the 
  2.17  decommissioning of a nuclear power plant within this state. 
  2.18     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
  2.19  272.02, subdivision 1, is amended to read: 
  2.20     Subdivision 1.  All property described in this section to 
  2.21  the extent herein limited shall be exempt from taxation: 
  2.22     (1) All public burying grounds. 
  2.23     (2) All public schoolhouses. 
  2.24     (3) All public hospitals. 
  2.25     (4) All academies, colleges, and universities, and all 
  2.26  seminaries of learning. 
  2.27     (5) All churches, church property, and houses of worship. 
  2.28     (6) Institutions of purely public charity except parcels of 
  2.29  property containing structures and the structures described in 
  2.30  section 273.13, subdivision 25, paragraph (c), clauses (1), (2), 
  2.31  and (3), or paragraph (d), other than those that qualify for 
  2.32  exemption under clause (25). 
  2.33     (7) All public property exclusively used for any public 
  2.34  purpose. 
  2.35     (8) Except for the taxable personal property enumerated 
  2.36  below, all personal property and the property described in 
  3.1   section 272.03, subdivision 1, paragraphs (c) and (d), shall be 
  3.2   exempt.  
  3.3      The following personal property shall be taxable:  
  3.4      (a) personal property which is part of an electric 
  3.5   generating, transmission, or distribution system or a pipeline 
  3.6   system transporting or distributing water, gas, crude oil, or 
  3.7   petroleum products or mains and pipes used in the distribution 
  3.8   of steam or hot or chilled water for heating or cooling 
  3.9   buildings and structures; 
  3.10     (b) railroad docks and wharves which are part of the 
  3.11  operating property of a railroad company as defined in section 
  3.12  270.80; 
  3.13     (c) personal property defined in section 272.03, 
  3.14  subdivision 2, clause (3); 
  3.15     (d) leasehold or other personal property interests which 
  3.16  are taxed pursuant to section 272.01, subdivision 2; 273.124, 
  3.17  subdivision 7; or 273.19, subdivision 1; or any other law 
  3.18  providing the property is taxable as if the lessee or user were 
  3.19  the fee owner; 
  3.20     (e) manufactured homes and sectional structures, including 
  3.21  storage sheds, decks, and similar removable improvements 
  3.22  constructed on the site of a manufactured home, sectional 
  3.23  structure, park trailer or travel trailer as provided in section 
  3.24  273.125, subdivision 8, paragraph (f); and 
  3.25     (f) flight property as defined in section 270.071.  
  3.26     (9) Personal property used primarily for the abatement and 
  3.27  control of air, water, or land pollution to the extent that it 
  3.28  is so used, and real property which is used primarily for 
  3.29  abatement and control of air, water, or land pollution as part 
  3.30  of an agricultural operation, as a part of a centralized 
  3.31  treatment and recovery facility operating under a permit issued 
  3.32  by the Minnesota pollution control agency pursuant to chapters 
  3.33  115 and 116 and Minnesota Rules, parts 7001.0500 to 7001.0730, 
  3.34  and 7045.0020 to 7045.1260, as a wastewater treatment facility 
  3.35  and for the treatment, recovery, and stabilization of metals, 
  3.36  oils, chemicals, water, sludges, or inorganic materials from 
  4.1   hazardous industrial wastes, or as part of an electric 
  4.2   generation system.  For purposes of this clause, personal 
  4.3   property includes ponderous machinery and equipment used in a 
  4.4   business or production activity that at common law is considered 
  4.5   real property. 
  4.6      Any taxpayer requesting exemption of all or a portion of 
  4.7   any real property or any equipment or device, or part thereof, 
  4.8   operated primarily for the control or abatement of air or water 
  4.9   pollution shall file an application with the commissioner of 
  4.10  revenue.  The equipment or device shall meet standards, rules, 
  4.11  or criteria prescribed by the Minnesota pollution control 
  4.12  agency, and must be installed or operated in accordance with a 
  4.13  permit or order issued by that agency.  The Minnesota pollution 
  4.14  control agency shall upon request of the commissioner furnish 
  4.15  information or advice to the commissioner.  On determining that 
  4.16  property qualifies for exemption, the commissioner shall issue 
  4.17  an order exempting the property from taxation.  The equipment or 
  4.18  device shall continue to be exempt from taxation as long as the 
  4.19  permit issued by the Minnesota pollution control agency remains 
  4.20  in effect. 
  4.21     (10) Wetlands.  For purposes of this subdivision, 
  4.22  "wetlands" means:  (i) land described in section 103G.005, 
  4.23  subdivision 18; (ii) land which is mostly under water, produces 
  4.24  little if any income, and has no use except for wildlife or 
  4.25  water conservation purposes, provided it is preserved in its 
  4.26  natural condition and drainage of it would be legal, feasible, 
  4.27  and economically practical for the production of livestock, 
  4.28  dairy animals, poultry, fruit, vegetables, forage and grains, 
  4.29  except wild rice; or (iii) land in a wetland preservation area 
  4.30  under sections 103F.612 to 103F.616.  "Wetlands" under items (i) 
  4.31  and (ii) include adjacent land which is not suitable for 
  4.32  agricultural purposes due to the presence of the wetlands, but 
  4.33  do not include woody swamps containing shrubs or trees, wet 
  4.34  meadows, meandered water, streams, rivers, and floodplains or 
  4.35  river bottoms.  Exemption of wetlands from taxation pursuant to 
  4.36  this section shall not grant the public any additional or 
  5.1   greater right of access to the wetlands or diminish any right of 
  5.2   ownership to the wetlands. 
  5.3      (11) Native prairie.  The commissioner of the department of
  5.4   natural resources shall determine lands in the state which are 
  5.5   native prairie and shall notify the county assessor of each 
  5.6   county in which the lands are located.  Pasture land used for 
  5.7   livestock grazing purposes shall not be considered native 
  5.8   prairie for the purposes of this clause.  Upon receipt of an 
  5.9   application for the exemption provided in this clause for lands 
  5.10  for which the assessor has no determination from the 
  5.11  commissioner of natural resources, the assessor shall refer the 
  5.12  application to the commissioner of natural resources who shall 
  5.13  determine within 30 days whether the land is native prairie and 
  5.14  notify the county assessor of the decision.  Exemption of native 
  5.15  prairie pursuant to this clause shall not grant the public any 
  5.16  additional or greater right of access to the native prairie or 
  5.17  diminish any right of ownership to it. 
  5.18     (12) Property used in a continuous program to provide 
  5.19  emergency shelter for victims of domestic abuse, provided the 
  5.20  organization that owns and sponsors the shelter is exempt from 
  5.21  federal income taxation pursuant to section 501(c)(3) of the 
  5.22  Internal Revenue Code of 1986, as amended through December 31, 
  5.23  1992, notwithstanding the fact that the sponsoring organization 
  5.24  receives funding under section 8 of the United States Housing 
  5.25  Act of 1937, as amended. 
  5.26     (13) If approved by the governing body of the municipality 
  5.27  in which the property is located, property not exceeding one 
  5.28  acre which is owned and operated by any senior citizen group or 
  5.29  association of groups that in general limits membership to 
  5.30  persons age 55 or older and is organized and operated 
  5.31  exclusively for pleasure, recreation, and other nonprofit 
  5.32  purposes, no part of the net earnings of which inures to the 
  5.33  benefit of any private shareholders; provided the property is 
  5.34  used primarily as a clubhouse, meeting facility, or recreational 
  5.35  facility by the group or association and the property is not 
  5.36  used for residential purposes on either a temporary or permanent 
  6.1   basis. 
  6.2      (14) To the extent provided by section 295.44, real and 
  6.3   personal property used or to be used primarily for the 
  6.4   production of hydroelectric or hydromechanical power on a site 
  6.5   owned by the state or a local governmental unit which is 
  6.6   developed and operated pursuant to the provisions of section 
  6.7   103G.535. 
  6.8      (15) If approved by the governing body of the municipality 
  6.9   in which the property is located, and if construction is 
  6.10  commenced after June 30, 1983:  
  6.11     (a) a "direct satellite broadcasting facility" operated by 
  6.12  a corporation licensed by the federal communications commission 
  6.13  to provide direct satellite broadcasting services using direct 
  6.14  broadcast satellites operating in the 12-ghz. band; and 
  6.15     (b) a "fixed satellite regional or national program service 
  6.16  facility" operated by a corporation licensed by the federal 
  6.17  communications commission to provide fixed satellite-transmitted 
  6.18  regularly scheduled broadcasting services using satellites 
  6.19  operating in the 6-ghz. band. 
  6.20  An exemption provided by clause (15) shall apply for a period 
  6.21  not to exceed five years.  When the facility no longer qualifies 
  6.22  for exemption, it shall be placed on the assessment rolls as 
  6.23  provided in subdivision 4.  Before approving a tax exemption 
  6.24  pursuant to this paragraph, the governing body of the 
  6.25  municipality shall provide an opportunity to the members of the 
  6.26  county board of commissioners of the county in which the 
  6.27  facility is proposed to be located and the members of the school 
  6.28  board of the school district in which the facility is proposed 
  6.29  to be located to meet with the governing body.  The governing 
  6.30  body shall present to the members of those boards its estimate 
  6.31  of the fiscal impact of the proposed property tax exemption.  
  6.32  The tax exemption shall not be approved by the governing body 
  6.33  until the county board of commissioners has presented its 
  6.34  written comment on the proposal to the governing body or 30 days 
  6.35  have passed from the date of the transmittal by the governing 
  6.36  body to the board of the information on the fiscal impact, 
  7.1   whichever occurs first. 
  7.2      (16) Real and personal property owned and operated by a 
  7.3   private, nonprofit corporation exempt from federal income 
  7.4   taxation pursuant to United States Code, title 26, section 
  7.5   501(c)(3), primarily used in the generation and distribution of 
  7.6   hot water for heating buildings and structures.  
  7.7      (17) Notwithstanding section 273.19, state lands that are 
  7.8   leased from the department of natural resources under section 
  7.9   92.46. 
  7.10     (18) Electric power distribution lines and their 
  7.11  attachments and appurtenances, that are used primarily for 
  7.12  supplying electricity to farmers at retail.  
  7.13     (19) Transitional housing facilities.  "Transitional 
  7.14  housing facility" means a facility that meets the following 
  7.15  requirements.  (i) It provides temporary housing to individuals, 
  7.16  couples, or families.  (ii) It has the purpose of reuniting 
  7.17  families and enabling parents or individuals to obtain 
  7.18  self-sufficiency, advance their education, get job training, or 
  7.19  become employed in jobs that provide a living wage.  (iii) It 
  7.20  provides support services such as child care, work readiness 
  7.21  training, and career development counseling; and a 
  7.22  self-sufficiency program with periodic monitoring of each 
  7.23  resident's progress in completing the program's goals.  (iv) It 
  7.24  provides services to a resident of the facility for at least 
  7.25  three months but no longer than three years, except residents 
  7.26  enrolled in an educational or vocational institution or job 
  7.27  training program.  These residents may receive services during 
  7.28  the time they are enrolled but in no event longer than four 
  7.29  years.  (v) It is owned and operated or under lease from a unit 
  7.30  of government or governmental agency under a property 
  7.31  disposition program and operated by one or more organizations 
  7.32  exempt from federal income tax under section 501(c)(3) of the 
  7.33  Internal Revenue Code of 1986, as amended through December 31, 
  7.34  1992.  This exemption applies notwithstanding the fact that the 
  7.35  sponsoring organization receives financing by a direct federal 
  7.36  loan or federally insured loan or a loan made by the Minnesota 
  8.1   housing finance agency under the provisions of either Title II 
  8.2   of the National Housing Act or the Minnesota housing finance 
  8.3   agency law of 1971 or rules promulgated by the agency pursuant 
  8.4   to it, and notwithstanding the fact that the sponsoring 
  8.5   organization receives funding under Section 8 of the United 
  8.6   States Housing Act of 1937, as amended. 
  8.7      (20) Real and personal property, including leasehold or 
  8.8   other personal property interests, owned and operated by a 
  8.9   corporation if more than 50 percent of the total voting power of 
  8.10  the stock of the corporation is owned collectively by:  (i) the 
  8.11  board of regents of the University of Minnesota, (ii) the 
  8.12  University of Minnesota Foundation, an organization exempt from 
  8.13  federal income taxation under section 501(c)(3) of the Internal 
  8.14  Revenue Code of 1986, as amended through December 31, 1992, and 
  8.15  (iii) a corporation organized under chapter 317A, which by its 
  8.16  articles of incorporation is prohibited from providing pecuniary 
  8.17  gain to any person or entity other than the regents of the 
  8.18  University of Minnesota; which property is used primarily to 
  8.19  manage or provide goods, services, or facilities utilizing or 
  8.20  relating to large-scale advanced scientific computing resources 
  8.21  to the regents of the University of Minnesota and others. 
  8.22     (21)(a) Wind energy conversion systems, as defined in 
  8.23  section 216C.06, subdivision 12, installed after January 1, 
  8.24  1991, and before January 2, 1995, and used as an electric power 
  8.25  source, are exempt. 
  8.26     (b) Wind energy conversion systems, as defined in section 
  8.27  216C.06, subdivision 12, installed after January 1, 1995, 
  8.28  including the foundation or support pad, which are (i) used as 
  8.29  an electric power source; (ii) located within one county and 
  8.30  owned by the same owner; and (iii) produce two megawatts or less 
  8.31  of electricity as measured by nameplate ratings, are exempt. 
  8.32     (c) Wind energy conversion systems, as defined in section 
  8.33  216C.06, subdivision 12, installed after January 1, 1995, and 
  8.34  used as an electric power source but not exempt under item (b), 
  8.35  are treated as follows:  (i) the foundation and support pad are 
  8.36  taxable; (ii) the associated supporting and protective 
  9.1   structures are exempt for the first five assessment years after 
  9.2   they have been constructed, and thereafter, 30 percent of the 
  9.3   market value of the associated supporting and protective 
  9.4   structures are taxable; and (iii) the turbines, blades, 
  9.5   transformers, and its related equipment, are exempt. 
  9.6      (22) Containment tanks, cache basins, and that portion of 
  9.7   the structure needed for the containment facility used to 
  9.8   confine agricultural chemicals as defined in section 18D.01, 
  9.9   subdivision 3, as required by the commissioner of agriculture 
  9.10  under chapter 18B or 18C. 
  9.11     (23) Photovoltaic devices, as defined in section 216C.06, 
  9.12  subdivision 13, installed after January 1, 1992, and used to 
  9.13  produce or store electric power. 
  9.14     (24) Real and personal property owned and operated by a 
  9.15  private, nonprofit corporation exempt from federal income 
  9.16  taxation pursuant to United States Code, title 26, section 
  9.17  501(c)(3), primarily used for an ice arena or ice rink, and used 
  9.18  primarily for youth and high school programs. 
  9.19     (25) A structure that is situated on real property that is 
  9.20  used for: 
  9.21     (i) housing for the elderly or for low- and moderate-income 
  9.22  families as defined in Title II of the National Housing Act, as 
  9.23  amended through December 31, 1990, and funded by a direct 
  9.24  federal loan or federally insured loan made pursuant to Title II 
  9.25  of the act; or 
  9.26     (ii) housing lower income families or elderly or 
  9.27  handicapped persons, as defined in Section 8 of the United 
  9.28  States Housing Act of 1937, as amended. 
  9.29     In order for a structure to be exempt under (i) or (ii), it 
  9.30  must also meet each of the following criteria: 
  9.31     (A) is owned by an entity which is operated as a nonprofit 
  9.32  corporation organized under chapter 317A; 
  9.33     (B) is owned by an entity which has not entered into a 
  9.34  housing assistance payments contract under Section 8 of the 
  9.35  United States Housing Act of 1937, or, if the entity which owns 
  9.36  the structure has entered into a housing assistance payments 
 10.1   contract under Section 8 of the United States Housing Act of 
 10.2   1937, the contract provides assistance for less than 90 percent 
 10.3   of the dwelling units in the structure, excluding dwelling units 
 10.4   intended for management or maintenance personnel; 
 10.5      (C) operates an on-site congregate dining program in which 
 10.6   participation by residents is mandatory, and provides assisted 
 10.7   living or similar social and physical support services for 
 10.8   residents; and 
 10.9      (D) was not assessed and did not pay tax under chapter 273 
 10.10  prior to the 1991 levy, while meeting the other conditions of 
 10.11  this clause. 
 10.12     An exemption under this clause remains in effect for taxes 
 10.13  levied in each year or partial year of the term of its permanent 
 10.14  financing. 
 10.15     (26) Real and personal property that is located in the 
 10.16  Superior National Forest, and owned or leased and operated by a 
 10.17  nonprofit organization that is exempt from federal income 
 10.18  taxation under section 501(c)(3) of the Internal Revenue Code of 
 10.19  1986, as amended through December 31, 1992, and primarily used 
 10.20  to provide recreational opportunities for disabled veterans and 
 10.21  their families. 
 10.22     (27) Manure pits and appurtenances, which may include 
 10.23  slatted floors and pipes, installed or operated in accordance 
 10.24  with a permit, order, or certificate of compliance issued by the 
 10.25  Minnesota pollution control agency.  The exemption shall 
 10.26  continue for as long as the permit, order, or certificate issued 
 10.27  by the Minnesota pollution control agency remains in effect. 
 10.28     (28) Notwithstanding clause (8), item (a), attached 
 10.29  machinery and other personal property which is part of a 
 10.30  facility containing a cogeneration system as described in 
 10.31  section 216B.166, subdivision 2, paragraph (a), if the 
 10.32  cogeneration system has met the following criteria:  (i) the 
 10.33  system utilizes natural gas as a primary fuel and the 
 10.34  cogenerated steam initially replaces steam generated from 
 10.35  existing thermal boilers utilizing coal; (ii) the facility 
 10.36  developer is selected as a result of a procurement process 
 11.1   ordered by the public utilities commission; and (iii) 
 11.2   construction of the facility is commenced after July 1, 1994, 
 11.3   and before July 1, 1997. 
 11.4      (29) Real property acquired by a home rule charter city, 
 11.5   statutory city, county, town, or school district under a lease 
 11.6   purchase agreement or an installment purchase contract during 
 11.7   the term of the lease purchase agreement as long as and to the 
 11.8   extent that the property is used by the city, county, town, or 
 11.9   school district and devoted to a public use and to the extent it 
 11.10  is not subleased to any private individual, entity, association, 
 11.11  or corporation in connection with a business or enterprise 
 11.12  operated for profit. 
 11.13     (30) Real and personal property used for the dry cask 
 11.14  storage of spent nuclear fuel from a nuclear electric generating 
 11.15  plant having two or more reactors provided the property is 
 11.16  located at the site of the plant. 
 11.17     Sec. 3.  [CONTRACTUAL OBLIGATION.] 
 11.18     The state releases the public utility operating the Prairie 
 11.19  Island nuclear plant from its contractual obligation under 
 11.20  Minnesota Statutes 1994, section 116C.773, to site, construct, 
 11.21  and operate an alternate site within Goodhue county for the 
 11.22  storage of spent nuclear fuel. 
 11.24     The legislature finds that it is appropriate that land in 
 11.25  this state conveyed to the Prairie Island Indian community by 
 11.26  the public utility operating the Prairie Island nuclear plant in 
 11.27  partial compensation for the storage of nuclear waste at the 
 11.28  plant be placed in trust for the community.  Nothing in this act 
 11.29  shall be construed to affect the Prairie Island Indian 
 11.30  community's sovereignty, nor change any existing agreement 
 11.31  between the community and the state. 
 11.32     Sec. 5.  [REPEALER.] 
 11.33     Minnesota Statutes 1994, section 116C.80, is repealed. 
 11.34     Sec. 6.  [CONTRACTUAL AGREEMENT.] 
 11.35     Sections 1 to 5 are effective upon a finding by the 
 11.36  environmental quality board that an agreement has been reached 
 12.1   between the Mdewakanton Dakota Tribal Council, on behalf of the 
 12.2   Prairie Island Indian community, and the public utility 
 12.3   operating the Prairie Island nuclear generating plant, binding 
 12.4   the parties to the following terms and conditions: 
 12.5      (1) a one-time payment of $2,000,000 by the public utility 
 12.6   to the Mdewakanton Dakota Tribal Council at Prairie Island on 
 12.7   behalf of the Prairie Island Indian community within 30 days of 
 12.8   the date of the agreement; 
 12.9      (2) an annual payment by the public utility to the tribal 
 12.10  council of $850,000 for the operating life of the Prairie Island 
 12.11  nuclear generating plant payable on or before June 1 of each 
 12.12  year; 
 12.13     (3) an annual payment by the public utility to the tribal 
 12.14  council of $350,000 for the siting of the storage pad on Prairie 
 12.15  Island payable on or before June 1 of each year; 
 12.16     (4) an annual payment by the public utility to the tribal 
 12.17  council $53,000 per dry cask payable on or before June 1 of each 
 12.18  year; and 
 12.19     (5) the purchase and transfer of 1,750 acres of land by the 
 12.20  public utility to the tribal council, to be used for those 
 12.21  members of the Prairie Island Indian community who wish to 
 12.22  relocate from Prairie Island.