SF 529

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to public safety; radio communications;
expanding and making permanent the sales and use tax
exemption for public safety radio communication system
products and services; expanding definition of
subsystems; expanding purposes for public safety radio
communication systems' revenue bonds; increasing
dollar limits and clarifying the kind of subsystem
certain revenue bonds may be used for; appropriating
money; amending Minnesota Statutes 2004, sections
297A.70, subdivision 8; 403.21, subdivision 8; 403.27,
subdivisions 1, 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 297A.70,
subdivision 8, is amended to read:

Subd. 8.

deleted text begin regionwide deleted text end public safety radio communication
deleted text begin system deleted text end new text begin systems new text end ; products and services.

Products and services
including, but not limited to, end new text begin - new text end user equipment used for
construction, ownership, operation, maintenance, and enhancement
of deleted text begin the backbone system of the regionwide deleted text end public safety radio
communication deleted text begin system established under sections 403.21 to
403.34, deleted text end new text begin systems new text end are exempt. deleted text begin For purposes of this subdivision,
backbone system is defined in section 403.21, subdivision 9.
This subdivision is effective for purchases, sales, storage,
use, or consumption occurring before August 1, 2005, in the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
Washington.
deleted text end

Sec. 2.

Minnesota Statutes 2004, section 403.21,
subdivision 8, is amended to read:

Subd. 8.

Subsystems.

"Subsystems" or "public safety
radio subsystems" means systems identified in the plan new text begin or a plan
developed under section 403.36 new text end as subsystems interconnected by
the system backbone deleted text begin in subsequent phases deleted text end and operated by the
Metropolitan Radio Board, a regional radio board, or local
government units for their own internal operations.

Sec. 3.

Minnesota Statutes 2004, section 403.27,
subdivision 1, is amended to read:

Subdivision 1.

Authorization.

(a) After consulting with
the commissioner of finance, the council, if requested by a vote
of at least two-thirds of all of the members of the Metropolitan
Radio Board, may, by resolution, authorize the issuance of its
revenue bonds for any of the following purposes deleted text begin to deleted text end :

(1) new text begin to new text end provide funds for regionwide mutual aid and
emergency medical services communications;

(2) new text begin to new text end provide funds for the elements of the first phase of
the regionwide public safety radio communication system that the
board determines are of regionwide benefit and support mutual
aid and emergency medical services communication including, but
not limited to, costs of master controllers of the backbone;

(3) new text begin to new text end provide money for the second phase of the public
safety radio communication system;

(4) to the extent money is available after meeting the
needs described in clauses (1) to (3), new text begin to new text end provide money to
reimburse local units of government for amounts expended for
capital improvements to the first phase system previously paid
for by the local government units; deleted text begin or
deleted text end

(5) new text begin to provide money for assistance to a local government
unit for up to 50 percent of the cost of building a subsystem in
the southeast or central districts of the State Patrol; or
new text end

new text begin (6) to new text end refund bonds issued under this section.

(b) After consulting with the commissioner of finance, the
council, if requested by a vote of at least two-thirds of all of
the members of the Statewide Radio Board, may, by resolution,
authorize the issuance of its revenue bonds to provide money for
the third phase of the public safety radio communication system.

Sec. 4.

Minnesota Statutes 2004, section 403.27,
subdivision 3, is amended to read:

Subd. 3.

Limitations.

(a) The principal amount of the
bonds issued pursuant to subdivision 1, exclusive of any
original issue discount, shall not exceed the amount of
$10,000,000 plus the amount the council determines necessary to
pay the costs of issuance, fund reserves, debt service, and pay
for any bond insurance or other credit enhancement.

(b) In addition to the amount authorized under paragraph
(a), the council may issue bonds under subdivision 1 in a
principal amount of $3,306,300, plus the amount the council
determines necessary to pay the cost of issuance, fund reserves,
debt service, and any bond insurance or other credit
enhancement. The proceeds of bonds issued under this paragraph
may not be used to finance portable or subscriber radio sets.

(c) In addition to the amount authorized under paragraphs
(a) and (b), the council may issue bonds under subdivision 1 in
a principal amount of $18,000,000, plus the amount the council
determines necessary to pay the costs of issuance, fund
reserves, debt service, and any bond insurance or other credit
enhancement. The proceeds of bonds issued under this paragraph
must be used to pay up to 50 percent of the cost to a local
government unit of building a subsystem new text begin identified in the plan
adopted under section 403.23, subdivision 2, new text end and may not be used
to finance portable or subscriber radio sets. The bond proceeds
may be used to make improvements to an existing 800 MHz radio
system that will interoperate with the regionwide public safety
radio communication system, provided that the improvements
conform to the board's plan and technical standards. The
council must time the sale and issuance of the bonds so that the
debt service on the bonds can be covered by the additional
revenue that will become available in the fiscal year ending
June 30, 2005, generated under section 403.11 and appropriated
under section 403.30.

(d) In addition to the amount authorized under paragraphs
(a) to (c), the council may issue bonds under subdivision 1 in a
principal amount of up to $27,000,000, plus the amount the
council determines necessary to pay the costs of issuance, fund
reserves, debt service, and any bond insurance or other credit
enhancement. The proceeds of bonds issued under this paragraph
are appropriated to the commissioner of public safety for phase
three of the public safety radio communication system. In
anticipation of the receipt by the commissioner of public safety
of the bond proceeds, the Metropolitan Radio Board may advance
money from its operating appropriation to the commissioner of
public safety to pay for design and preliminary engineering for
phase three. The commissioner of public safety must return
these amounts to the Metropolitan Radio Board when the bond
proceeds are received.

new text begin (e) In addition to the amount authorized under paragraphs
(a) through (d), the council may issue bonds under subdivision 1
in a principal amount of up to $......., plus the amount the
council determines necessary to pay the costs of issuance, fund
reserves, debt service, and any bond insurance or other credit
enhancement. The proceeds of bonds issued under this paragraph
are appropriated to the commissioner of public safety for the
purpose of subdivision 1, paragraph (a), clause (5), provided
that the proceeds may not be used to finance portable or
subscriber radio sets.
new text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 4 are effective the day following final
enactment.
new text end