SF 810

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to local government; limiting a certain 
  1.3             exclusion from net debt to certain transactions; 
  1.4             amending Minnesota Statutes 1996, section 465.71. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1996, section 465.71, is 
  1.7   amended to read: 
  1.8      465.71 [INSTALLMENT AND LEASE PURCHASES; CITIES; COUNTIES; 
  1.9   SCHOOL DISTRICTS.] 
  1.10     A home rule charter city, statutory city, county, town, or 
  1.11  school district may purchase personal property under an 
  1.12  installment contract, or lease real or personal property with an 
  1.13  option to purchase under a lease-purchase agreement, by which 
  1.14  contract or agreement title is retained by the seller or vendor 
  1.15  or assigned to a third party as security for the purchase price, 
  1.16  including interest, if any, but such purchases are subject to 
  1.17  statutory and charter provisions applicable to the purchase of 
  1.18  real or personal property.  For purposes of the bid requirements 
  1.19  contained in section 471.345, "the amount of the contract" shall 
  1.20  include the total of all lease payments for the entire term of 
  1.21  the lease under a lease-purchase agreement.  The obligation 
  1.22  created by a lease-purchase agreement for personal property or a 
  1.23  lease-purchase agreement for real property if the amount of the 
  1.24  contract for purchase of the real property is less than 
  1.25  $1,000,000 shall not be included in the calculation of net debt 
  2.1   for purposes of section 475.53, and shall not constitute debt 
  2.2   under any other statutory provision.  No election shall be 
  2.3   required in connection with the execution of a lease-purchase 
  2.4   agreement authorized by this section.  The city, county, town, 
  2.5   or school district must have the right to terminate a lease-
  2.6   purchase agreement at the end of any fiscal year during its term.