HF 3664

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to local governments; restricting the 
  1.3             authority to issue bonds for projects outside of the 
  1.4             corporate boundaries of the issuer; proposing coding 
  1.5             for new law in Minnesota Statutes, chapter 475. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [475.531] [LIMITS ON ISSUANCE FOR 
  1.8   EXTRATERRITORIAL PROJECTS.] 
  1.9      (a) Notwithstanding any law to the contrary, neither a 
  1.10  municipality nor an authority may issue obligations to finance 
  1.11  the acquisition or improvement of real property located outside 
  1.12  of the corporate boundaries of the issuer, unless: 
  1.13     (1) the issuing governmental unit is the equitable owner of 
  1.14  the property to be financed and the property is used or is to be 
  1.15  used by the issuer for its governmental operations; or 
  1.16     (2) the governing body of the city for property located in 
  1.17  incorporated areas, or the governing body of the county for 
  1.18  property located outside of an incorporated area, consents, by 
  1.19  resolution, to the issuance of the obligations. 
  1.20     (b) For purposes of this section, an authority includes, 
  1.21  whether created under general or special law: 
  1.22     (1) a housing and redevelopment authority; 
  1.23     (2) an economic development authority; 
  1.24     (3) a port authority; 
  1.25     (4) a rural development financing authority; or 
  2.1      (5) other similar local government entities that are 
  2.2   authorized by law to issue obligations. 
  2.3      [EFFECTIVE DATE.] This section is effective for obligations 
  2.4   issued or sold after June 30, 2002.