SF 1057

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to economic development authorities; 
  1.3             authorizing multi-year pledges of the authority's levy 
  1.4             to secure revenue bonds; amending Minnesota Statutes 
  1.5             1998, section 469.103, subdivision 5, and by adding a 
  1.6             subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 469.103, 
  1.9   subdivision 5, is amended to read: 
  1.10     Subd. 5.  [REVENUE PLEDGE.] (a) In issuing general 
  1.11  obligation or revenue bonds, the authority may secure the 
  1.12  payment of the principal and the interest on the bonds by a 
  1.13  pledge of and lien on authority revenue.  The revenue must come 
  1.14  from the facility to be acquired, constructed, or improved with 
  1.15  the bond proceeds or from other facilities named in the 
  1.16  bond-authorizing resolutions.  The authority also may secure the 
  1.17  payment with its promise to impose, maintain, and collect enough 
  1.18  rentals, rates, and charges, for the use and occupancy of the 
  1.19  facilities and for services furnished in connection with the use 
  1.20  and occupancy, to pay its current expenses to operate and 
  1.21  maintain the named facilities, and to produce and deposit 
  1.22  sufficient net revenue in a special fund to meet the interest 
  1.23  and principal requirements of the bonds, and to collect and keep 
  1.24  any more money required by the resolutions.  The authority shall 
  1.25  decide what constitutes "current expense" under this subdivision 
  1.26  based on what is normal and reasonable under generally accepted 
  2.1   accounting principles.  Revenues pledged by the authority must 
  2.2   not be used or pledged for any other authority purpose or to pay 
  2.3   any other bonds issued under this section or under section 
  2.4   469.102, unless the other use or pledge is specifically 
  2.5   authorized in the bond-authorizing resolutions. 
  2.6      (b) The authority may pledge to pay all or part of the 
  2.7   proceeds of the annual levy permitted under section 469.107 for 
  2.8   a period of up to 25 years to secure revenue bonds issued under 
  2.9   this section.  Revenue bonds, secured by such a pledge of the 
  2.10  levy, may be issued and sold without submission of the question 
  2.11  to the electors of the city. 
  2.12     Sec. 2.  Minnesota Statutes 1998, section 469.103, is 
  2.13  amended by adding a subdivision to read: 
  2.14     Subd. 9.  [PUBLIC HEARING; REVERSE REFERENDUM.] (a) Before 
  2.15  issuing a bonds secured pledge of the levy under subdivision 5, 
  2.16  paragraph (b), the authority must publish a notice of its 
  2.17  intention to issue the bonds and the date and time of a hearing 
  2.18  to obtain public comment on the matter.  The notice must be 
  2.19  published in the official newspaper of the city or in a 
  2.20  newspaper of general circulation in the city.  The notice must 
  2.21  be published at least 14, but not more than 28, days before the 
  2.22  date of the hearing. 
  2.23     (b) If a petition requesting a vote on the issuance is 
  2.24  signed by voters equal to five percent or more of the votes cast 
  2.25  in the city in the last general election and is filed with the 
  2.26  clerical officer of the city within 30 days after the public 
  2.27  hearing, the authority may issue bonds that pledge revenues as 
  2.28  provided in subdivision 5, paragraph (b), only upon obtaining 
  2.29  the approval of a majority of the voters voting on the question 
  2.30  of issuing the obligations. 
  2.31     Sec. 3.  [EFFECTIVE DATE.] 
  2.32     Sections 1 and 2 are effective the day following final 
  2.33  enactment.