{\rtf1\ansi\deff0{\fonttbl{\f0 Times New Roman;}}\margl480\margr0\margt0\margb0\fs20\n\line \line\n\line \line\n\line \line\n\line {\pard\n\line \n\line
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1.1A bill for an act \n\line \n\line
1.2relating to local government; authorizing Hennepin County to purchase energy \n\line 1.3under forward pricing mechanisms;proposing coding for new law in Minnesota \n\line 1.4Statutes, chapter 383B. \n\line 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: \n\line \n\line 1.6 Section 1. {\ul [383B.1588] ENERGY FORWARD PRICING MECHANISMS.} \n\line 1.7 {\ul Subdivision 1.} {\ul Definitions.} {\ul The following definitions apply in this section.} \n\line 1.8{\ul (a) "Energy" means natural gas, heating oil, diesel fuel, unleaded fuel, or any other } \n\line 1.9{\ul energy source, except electric, used in Hennepin County operations.} \n\line 1.10{\ul (b) "Forward pricing mechanism" means either:} \n\line 1.11{\ul (1) a contract or financial instrument that obligates Hennepin County to buy or sell a } \n\line 1.12{\ul specified amount of an energy commodity at a future date and at a set price; or} \n\line 1.13{\ul (2) an option to buy or sell the contract or financial instrument.} \n\line 1.14 {\ul Subd. 2.} {\ul Authority provided.} {\ul Notwithstanding any other law to the contrary, } \n\line 1.15{\ul the Hennepin County Board of Commissioners may use forward pricing mechanisms } \n\line 1.16{\ul for budget risk reduction.} \n\line 1.17 {\ul Subd. 3.} {\ul Conditions.} {\ul (a) Forward pricing transactions made under this section must } \n\line 1.18{\ul be made only under the conditions in this subdivision.} \n\line 1.19{\ul (b) The amount of energy forward priced must not exceed the estimated energy } \n\line 1.20{\ul usage for Hennepin County operations for the period of time covered by the forward } \n\line 1.21{\ul pricing mechanism.} \n\line 1.22{\ul (c) The holding period and expiration date for any forward pricing mechanism must } \n\line 1.23{\ul not exceed 24 months from the trade date of the transaction.} \n\line 2.1{\ul (d) Separate accounts must be established for each operational energy for which } \n\line 2.2{\ul forward pricing mechanisms are used under this section.} \n\line 2.3 {\ul Subd. 4.} {\ul Written policies and procedures.} {\ul Before exercising authority under } \n\line 2.4{\ul subdivision 2, the Hennepin County Board of Commissioners must have written policies } \n\line 2.5{\ul and procedures governing the use of forward pricing mechanisms.} \n\line 2.6 {\ul Subd. 5.} {\ul Oversight process.} {\ul (a) Before exercising authority under subdivision 2, } \n\line 2.7{\ul the Hennepin County Board of Commissioners must establish an oversight process that } \n\line 2.8{\ul provides for review of the county's used of forward pricing mechanisms.} \n\line 2.9{\ul (b) The process must include:} \n\line 2.10{\ul (1) internal or external audit reviews;} \n\line 2.11{\ul (2) annual reports to, and review by, an internal investment committee; and} \n\line 2.12{\ul (3) internal management control.} \n\line 2.13{\ul EFFECTIVE DATE.}{\ul This section is effective without local approval the day } \n\line 2.14{\ul following final enactment as provided under Minnesota Statutes, section 645.023, } \n\line 2.15{\ul subdivision 1, paragraph (a).} \n\line \n\line