SF 1257

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:19am

A bill for an act
relating to public finance; providing terms and conditions relating to issuance
of obligations and financing of public improvements; modifying restrictions
on mail elections; providing for the application of a deposit by the city of St.
Paul; increasing Cook County bonding authorization; eliminating a restriction
on the city of Minneapolis; amending Minnesota Statutes 2008, sections
37.31, subdivision 8; 126C.55, subdivision 4; 204B.46; 360.036, subdivision
2; 366.095, subdivision 1; 373.47, subdivision 1; 446A.086, by adding a
subdivision; 469.005, subdivision 1; 469.015, subdivisions 1, 2, 3; 469.034,
subdivision 2; 469.040, subdivisions 2, 4; 469.153, subdivision 2; 471.191,
subdivision 1; 474A.02, subdivisions 2, 14; 475.67, subdivision 8; Laws 1971,
chapter 773, section 4, as amended; Laws 2008, chapter 366, article 7, section
18, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter
16A; repealing Laws 1959, chapter 577, sections 1, 2, 3, 4.

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

Section 1.

new text begin [16A.647] TAX CREDIT AND INTEREST SUBSIDY BONDS.
new text end

new text begin Subdivision 1. new text end

new text begin Authority to issue. new text end

new text begin When authorized by law to issue state general
obligation bonds, the commissioner may issue all or part of the bonds as tax credit bonds
or as interest subsidy bonds or a combination of the two. The provisions of section
16A.695 do not apply to bonds issued as tax credit bonds or interest subsidy bonds.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Tax credit bonds" means bonds, the interest on which is includable in the
income of the owner of the bonds for federal income tax purposes, but for which the
owner is entitled to a federal tax credit.
new text end

new text begin (c) "Interest subsidy bonds" means bonds, the interest on which is includable in the
income of the owner of the bonds for federal income tax purposes, but for which the
issuer is entitled to federal interest subsidy payments based on a percentage of the interest
payable on the interest subsidy bonds.
new text end

new text begin Subd. 3. new text end

new text begin Method of sale. new text end

new text begin Notwithstanding the provisions of section 16A.641,
subdivision 4, the commissioner may sell any series of tax credit bonds or interest
subsidy bonds at negotiated sale upon the terms and conditions and the restrictions the
commissioner prescribes, but the commissioner may contract for investment banking
and banking services only after receiving competitive proposals for the services. The
commissioner may enter into all contracts deemed necessary or desirable to accomplish
the sale in a cost-effective manner.
new text end

new text begin Subd. 4. new text end

new text begin Sinking fund. new text end

new text begin The commissioner's order authorizing the issuance of
interest subsidy bonds must establish a separate sinking fund account for the interest
subsidy bonds in the state bond fund. There is annually appropriated, as received, to each
interest subsidy bond account, in addition to amounts appropriated under section 16A.641,
the interest subsidy payments received from the federal government with respect to that
issue of interest subsidy bonds in that year.
new text end

new text begin Subd. 5. new text end

new text begin Sale. new text end

new text begin Tax credit bonds and interest subsidy bonds must be sold at a price
not less than 98 percent of their stated principal amount. No state trunk highway bond
may be sold for a price of less than par and accrued interest.
new text end

Sec. 2.

Minnesota Statutes 2008, section 37.31, subdivision 8, is amended to read:

Subd. 8.

Expiration.

The authority to issue bonds, other than bonds to refund
outstanding bonds, under this section expires July 1, deleted text begin 2009 deleted text end new text begin 2015 new text end .

Sec. 3.

Minnesota Statutes 2008, section 126C.55, subdivision 4, is amended to read:

Subd. 4.

Pledge of district's full faith and credit.

If, at the request of a school
district or intermediate school district, the state has paid part or all of the principal or
interest due on a district's debt obligation on a specific date, the pledge of the full faith and
credit and unlimited taxing powers of the school district or the member districts of the
intermediate district to repay the principal and interest due on those debt obligations shall
also, without an election or the requirement of a further authorization, become a pledge of
the full faith and credit and unlimited taxing powers of the school district or the member
districts of the intermediate district to repay to the state the amount paid, with interest.
Amounts paid by the state must be repaid in the order in which the state payments were
made. new text begin Whenever the state pays under this section interest on bonds for which the issuer is
entitled to federal interest subsidy payments, the state is subrogated to the issuer's rights to
any federal interest subsidy payments relating to the interest paid by the state, unless and
until the state has been reimbursed by the issuer in full.
new text end

Sec. 4.

Minnesota Statutes 2008, section 204B.46, is amended to read:

204B.46 MAIL ELECTIONS; QUESTIONS.

A county, municipality, or school district submitting questions to the voters at a
special election may conduct an election by mail with no polling place other than the office
of the auditor or clerk. No deleted text begin more than two questions may be submitted at a mail election
and no deleted text end offices may be voted on new text begin at a mail election new text end . Notice of the election must be given
to the county auditor at least 53 days prior to the election. This notice shall also fulfill
the requirements of Minnesota Rules, part 8210.3000. The special mail ballot procedures
must be posted at least six weeks prior to the election. No earlier than 20 or later than 14
days prior to the election, the auditor or clerk shall mail ballots by nonforwardable mail
to all voters registered in the county, municipality, or school district. Eligible voters not
registered at the time the ballots are mailed may apply for ballots pursuant to chapter 203B.

Sec. 5.

Minnesota Statutes 2008, section 360.036, subdivision 2, is amended to read:

Subd. 2.

Issuance of bonds.

(a) Bonds to be issued by a municipality under sections
360.011 to 360.076, shall be authorized and issued in the manner and within the limitation
prescribed by laws or the charter of the municipality for the issuance and authorization of
bonds for public purposes generally, except as provided in paragraphs (b) and (c).

(b) No election is required to authorize the issuance of the bonds if:

(1) a board organized under section 360.042 recommends by a resolution adopted
by a vote of not less than 60 percent of its members the issuance of bonds, and the
bonds are authorized by a resolution of the governing body of each of the municipalities
acting jointly pursuant to section 360.042, adopted by a vote of not less than 60 percent
of its members; deleted text begin or
deleted text end

(2) new text begin the bonds are authorized by a resolution of the governing body of the
municipality, adopted by a vote of not less than 60 percent of its members; or
new text end

new text begin (3) new text end the bonds are being issued for the purpose of financing the costs of constructing,
enlarging, or improving airports and other air navigation facilities; and

(i) the governing body estimates that passenger facility charges and other revenues
pledged to the payment thereof will be at least 20 percent of the debt service payable
on the bonds in any year;

(ii) the project will be funded in part by a new text begin state or new text end federal grant for airport
development; and

(iii) the principal amount of the bonds issued under this clause does not exceed 25
percent of the amount of the new text begin state or new text end federal grant.

(c) If the bonds are general obligations of the municipality, the levy of taxes required
by section 475.61 to pay principal and interest on the bonds is not included in computing
or applying any levy limitation applicable to the municipality.

Sec. 6.

Minnesota Statutes 2008, section 366.095, subdivision 1, is amended to read:

Subdivision 1.

Certificates of indebtedness.

The town board may issue certificates
of indebtedness within the debt limits for a town purpose otherwise authorized by law.
The certificates shall be payable in not more than deleted text begin five deleted text end new text begin ten new text end years and be issued on the terms
and in the manner as the board may determine. If the amount of the certificates to be
issued exceeds 0.25 percent of the market value of the town, they shall not be issued for at
least ten days after publication in a newspaper of general circulation in the town of the
board's resolution determining to issue them. If within that time, a petition asking for an
election on the proposition signed by voters equal to ten percent of the number of voters
at the last regular town election is filed with the clerk, the certificates shall not be issued
until their issuance has been approved by a majority of the votes cast on the question at
a regular or special election. A tax levy shall be made to pay the principal and interest
on the certificates as in the case of bonds.

Sec. 7.

Minnesota Statutes 2008, section 373.47, subdivision 1, is amended to read:

Subdivision 1.

Authority to incur debt.

Subject to prior approval by the Statewide
Radio Board under section 403.36, the governing body of a county may finance the cost of
designing, constructing, and acquiring public safety communication system infrastructure
and equipment for use on the statewide, shared public safety radio system by issuing:

(1) capital improvement bonds under section 373.40, as if the infrastructure and
equipment qualified as a "capital improvement" within the meaning of section 373.40,
subdivision 1, paragraph (b) new text begin , bonds issued under this section are exempt from and shall
not be included in calculating the limitations in section 373.40, subdivision 4 new text end ; and

(2) capital notes under the provisions of section 373.01, subdivision 3, as if the
equipment qualified as "capital equipment" within the meaning of section 373.01,
subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
and applies to bonds issued after May 22, 2002.
new text end

Sec. 8.

Minnesota Statutes 2008, section 446A.086, is amended by adding a
subdivision to read:

new text begin Subd. 12. new text end

new text begin Federal interest subsidy payments. new text end

new text begin Whenever the state pays under
this section interest on bonds for which the issuer is entitled to federal interest subsidy
payments, the state is subrogated to the issuer's rights to any federal interest subsidy
payments relating to the interest paid by the state, unless and until the state has been
reimbursed by the issuer in full.
new text end

Sec. 9.

Minnesota Statutes 2008, section 469.005, subdivision 1, is amended to read:

Subdivision 1.

County and multicounty authorities.

The area of operation of a
county authority shall include all of the county for which it is created, and in case of
a multicounty authority, it shall include all of the political subdivisions for which the
multicounty authority is created; provided, that a county authority or a multicounty
authority shall not undertake any project within the boundaries of any city which has not
empowered the authority to function therein as provided in section 469.004 unless a
resolution has been adopted by the governing body of the city deleted text begin , and by any authority which
has been established in the city, deleted text end declaring that there is a need for the county or multicounty
authority to exercise its powers in the city. A resolution is not required for the operation of
a Section 8 program or a public housing scattered site project.

Sec. 10.

Minnesota Statutes 2008, section 469.015, subdivision 1, is amended to read:

Subdivision 1.

Bids; notice.

All construction work, and work of demolition or
clearing, and every purchase of equipment, supplies, or materials, necessary in carrying
out the purposes of sections 469.001 to 469.047, deleted text begin that involve expenditure of $50,000 or
more deleted text end shall be awarded by contract new text begin as provided in section 471.345 new text end . Before receiving
bids new text begin under section 471.345, subdivision 3, new text end the authority shall publish, once a week for
two consecutive weeks in an official newspaper of general circulation in the community a
notice that bids will be received for that construction work, or that purchase of equipment,
supplies, or materials. The notice shall state the nature of the work and the terms and
conditions upon which the contract is to be let, naming a time and place where bids will
be received, opened and read publicly, which time shall be not less than seven days after
the date of the last publication. After the bids have been received, opened and read
publicly and recorded, the authority shall award the contract to the lowest responsible
bidder, provided that the authority reserves the right to reject any or all bids. Each
contract shall be executed in writing, and the person to whom the contract is awarded
shall give sufficient bond to the authority for its faithful performance. If no satisfactory
bid is received, the authority may readvertise. The authority may establish reasonable
qualifications to determine the fitness and responsibility of bidders and to require bidders
to meet the qualifications before bids are accepted.

Sec. 11.

Minnesota Statutes 2008, section 469.015, subdivision 2, is amended to read:

Subd. 2.

Exception; emergency.

If the authority by a vote of four-fifths of its
members shall declare that an emergency exists requiring the immediate purchase of
any equipment or material or supplies at a cost in excess of deleted text begin $50,000 but not exceeding
$75,000 deleted text end new text begin the amount provided in section 471.345 new text end , or making of emergency repairs, it shall
not be necessary to advertise for bids, but the material, equipment, or supplies may be
purchased in the open market at the lowest price obtainable, or the emergency repairs may
be contracted for or performed without securing formal competitive bids. An emergency,
for purposes of this subdivision, shall be understood to be unforeseen circumstances or
conditions which result in the placing in jeopardy of human life or property.

Sec. 12.

Minnesota Statutes 2008, section 469.015, subdivision 3, is amended to read:

Subd. 3.

Performance and payment bonds.

Performance and payment bonds shall
be required from contractors for any works of construction as provided in and subject to
all the provisions of sections 574.26 to 574.31 deleted text begin except for contracts entered into by an
authority for an expenditure of less than $50,000 deleted text end .

Sec. 13.

Minnesota Statutes 2008, section 469.034, subdivision 2, is amended to read:

Subd. 2.

General obligation revenue bonds.

(a) An authority may pledge the
general obligation of the general jurisdiction governmental unit as additional security for
bonds payable from income or revenues of the project or the authority. The authority
must find that the pledged revenues will equal or exceed 110 percent of the principal and
interest due on the bonds for each year. The proceeds of the bonds must be used for a
qualified housing development project or projects. The obligations must be issued and
sold in the manner and following the procedures provided by chapter 475, except the
obligations are not subject to approval by the electors, and the maturities may extend to
not more than 35 years for obligations sold to finance housing for the elderly and 40 years
for other obligations issued under this subdivision. The authority is the municipality for
purposes of chapter 475.

(b) The principal amount of the issue must be approved by the governing body of
the general jurisdiction governmental unit whose general obligation is pledged. Public
hearings must be held on issuance of the obligations by both the authority and the general
jurisdiction governmental unit. The hearings must be held at least 15 days, but not more
than 120 days, before the sale of the obligations.

(c) The maximum amount of general obligation bonds that may be issued and
outstanding under this section equals the greater of (1) one-half of one percent of
the taxable market value of the general jurisdiction governmental unit whose general
obligation is pledged, or (2) $3,000,000. In the case of county or multicounty general
obligation bonds, the outstanding general obligation bonds of all cities in the county
or counties issued under this subdivision must be added in calculating the limit under
clause (1).

(d) "General jurisdiction governmental unit" means the city in which the housing
development project is located. In the case of a county or multicounty authority, the
county or counties may act as the general jurisdiction governmental unit. In the case of
a multicounty authority, the pledge of the general obligation is a pledge of a tax on the
taxable property in each of the counties.

(e) "Qualified housing development project" means a housing development project
providing housing either for the elderly or for individuals and families with incomes not
greater than 80 percent of the median family income as estimated by the United States
Department of Housing and Urban Development for the standard metropolitan statistical
area or the nonmetropolitan county in which the project is located. The project must be
owned for the term of the bonds either by the authority or by a limited partnership or other
entity in which the authority or another entity under the sole control of the authority is the
sole general partner and the partnership or other entity must receive (1) an allocation from
the Department of Finance or an entitlement issuer of tax-exempt bonding authority for
the project and a preliminary determination by the Minnesota Housing Finance Agency
or the applicable suballocator of tax credits that the project will qualify for four percent
low-income housing tax credits or (2) a reservation of nine percent low-income housing
tax credits from the Minnesota Housing Finance Agency or a suballocator of tax credits
for the project. A qualified housing development project may admit nonelderly individuals
and families with higher incomes if:

(1) three years have passed since initial occupancy;

(2) the authority finds the project is experiencing unanticipated vacancies resulting in
insufficient revenues, because of changes in population or other unforeseen circumstances
that occurred after the initial finding of adequate revenues; and

(3) the authority finds a tax levy or payment from general assets of the general
jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher
income individuals or families are not admitted.

new text begin (f) The authority may issue bonds to refund bonds issued under this subdivision in
accordance with section 475.67. The finding of the adequacy of pledged revenues required
by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the
issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
after July 1, 1992.
new text end

Sec. 14.

Minnesota Statutes 2008, section 469.040, subdivision 2, is amended to read:

Subd. 2.

Leased property, exception.

Notwithstanding the provisions of
subdivision 1, any property other than property to be operated as a parking facility that
the authority leases to private individuals or corporations for development in connection
with a redevelopment project shall have the same tax status as if the leased property were
owned by the private individuals or corporations. new text begin This subdivision does not apply to
leases by the authority to individuals or families for residential use.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to housing projects and housing
development projects constructed or acquired by an authority after July 1, 1987, for
property taxes payable in 2010 and thereafter.
new text end

Sec. 15.

Minnesota Statutes 2008, section 469.040, subdivision 4, is amended to read:

Subd. 4.

Facilities funded from multiple sources.

In the metropolitan area, as
defined in section 473.121, subdivision 2, the tax treatment provided in subdivision 3
applies to that portion of any multifamily rental housing facility represented by the ratio of
(1) the number of units in the facility that are deleted text begin subject to the requirements of deleted text end new text begin constructed
with funds provided under new text end Section 5 of the United States Housing Act of 1937, new text begin and are
receiving operating subsidy under Section 5 or rental assistance under Section 8 of the
United States Housing Act of 1937 new text end as the result of the implementation of a federal court
order or consent decree to (2) the total number of units within the facility.

The housing and redevelopment authority for the city in which the facility is located,
any public entity exercising the powers of such housing and redevelopment authority, or
the county housing and redevelopment authority for the county in which the facility is
located, shall annually certify to the assessor responsible for assessing the facility, at the
time and in the manner required by the assessor, the number of units in the facility that
are deleted text begin subject to the requirements of deleted text end new text begin constructed with funds provided under new text end Section 5 new text begin of the
United States Housing Act of 1937, and are receiving operating subsidy under Section 5
or rental assistance under Section 8 new text end of the United States Housing Act of 1937.

Nothing in this subdivision shall prevent that portion of the facility not subject to
this subdivision from meeting the requirements of section 273.128, and for that purpose
the total number of units in the facility must be taken into account.

Sec. 16.

Minnesota Statutes 2008, section 469.153, subdivision 2, is amended to read:

Subd. 2.

Project.

(a) "Project" means (1) any properties, real or personal, used
or useful in connection with a revenue producing enterprise, or any combination of
two or more such enterprises engaged or to be engaged in generating, transmitting, or
distributing electricity, assembling, fabricating, manufacturing, mixing, processing,
storing, warehousing, or distributing any products of agriculture, forestry, mining, or
manufacture, or in research and development activity in this field new text begin , or in the manufacturing,
creation, or production of intangible property, including any patent, copyright, formula,
process, design, know how, format, or other similar item new text end ; (2) any properties, real or
personal, used or useful in the abatement or control of noise, air, or water pollution, or in
the disposal of solid wastes, in connection with a revenue producing enterprise, or any
combination of two or more such enterprises engaged or to be engaged in any business
or industry; (3) any properties, real or personal, used or useful in connection with the
business of telephonic communications, conducted or to be conducted by a telephone
company, including toll lines, poles, cables, switching, and other electronic equipment
and administrative, data processing, garage, and research and development facilities;
(4) any properties, real or personal, used or useful in connection with a district heating
system, consisting of the use of one or more energy conversion facilities to produce hot
water or steam for distribution to homes and businesses, including cogeneration facilities,
distribution lines, service facilities, and retrofit facilities for modifying the user's heating
or water system to use the heat energy converted from the steam or hot water.

(b) "Project" also includes any properties, real or personal, used or useful in
connection with a revenue producing enterprise, or any combination of two or more
such enterprises engaged in any business.

(c) "Project" also includes any properties, real or personal, used or useful for the
promotion of tourism in the state. Properties may include hotels, motels, lodges, resorts,
recreational facilities of the type that may be acquired under section 471.191, and related
facilities.

(d) "Project" also includes any properties, real or personal, used or useful in
connection with a revenue producing enterprise, whether or not operated for profit,
engaged in providing health care services, including hospitals, nursing homes, and related
medical facilities.

(e) "Project" does not include any property to be sold or to be affixed to or consumed
in the production of property for sale, and does not include any housing facility to be
rented or used as a permanent residence.

(f) "Project" also means the activities of any revenue producing enterprise involving
the construction, fabrication, sale, or leasing of equipment or products to be used in
gathering, processing, generating, transmitting, or distributing solar, wind, geothermal,
biomass, agricultural or forestry energy crops, or other alternative energy sources for
use by any person or any residential, commercial, industrial, or governmental entity in
heating, cooling, or otherwise providing energy for a facility owned or operated by that
person or entity.

(g) "Project" also includes any properties, real or personal, used or useful in
connection with a county jail, county regional jail, community corrections facilities
authorized by chapter 401, or other law enforcement facilities, the plans for which are
approved by the commissioner of corrections; provided that the provisions of section
469.155, subdivisions 7 and 13, do not apply to those projects.

(h) "Project" also includes any real properties used or useful in furtherance of the
purpose and policy of section 469.141.

(i) "Project" also includes related facilities as defined by section 471A.02,
subdivision 11.

(j) "Project" also includes an undertaking to purchase the obligations of local
governments located in whole or in part within the boundaries of the municipality that are
issued or to be issued for public purposes.

Sec. 17.

Minnesota Statutes 2008, section 471.191, subdivision 1, is amended to read:

Subdivision 1.

Lease to nonprofit.

Any city operating a program of public
recreation and playgrounds pursuant to sections 471.15 to 471.19 may acquire or lease,
equip, and maintain land, buildings, and other recreational facilities, including, but
without limitation, outdoor or indoor swimming pools, skating rinks and arenas, athletic
fields, golf courses, marinas, concert halls, museums, and facilities for other kinds of
athletic or cultural participation, contests, new text begin conventions, conferences, new text end and exhibitions,
together with related automobile parking facilities as defined in section 459.14, and may
expend funds for the operation of such program and borrow and expend funds for capital
costs thereof pursuant to the provisions of this section. A school district operating a
program of public recreation and playgrounds has the rights provided in this section. Any
facilities to be operated by a nonprofit corporation, as contemplated in section 471.16,
may be leased to the corporation upon such rentals and for such term, not exceeding 30
years, and subject to such other provisions as may be agreed; including but not limited to
provisions (a) permitting the lessee, subject to whatever conditions are stated, to provide
for the construction and equipment of the facilities by any means available to it and in the
manner determined by it, without advertisement for bids as required for other municipal
facilities, and (b) granting the lessee the option to renew the lease upon such conditions
and rentals, or to purchase the facilities at such price, as may be agreed; provided that (c)
any such lease shall require the lessee to pay net rentals sufficient to pay the principal,
interest, redemption premiums, and other expenses when due with respect to all city
bonds issued for the acquisition or betterment of the facilities, less such amount of taxes
and special assessments, if any, as may become payable in any year of the term of the
lease, on the land, building, or other facilities leased, and (d) no option shall be granted
to purchase the facilities at any time at a price less than the amount required to pay all
principal and interest to become due on such bonds to the earliest date or dates on which
they may be paid and redeemed, and all redemption premiums and other expenses of
such payment and redemption.

Sec. 18.

Minnesota Statutes 2008, section 474A.02, subdivision 2, is amended to read:

Subd. 2.

Annual volume cap.

"Annual volume cap" means the aggregate dollar
amount of obligations new text begin constituting "private activity bonds" under federal tax law and
new text end bearing interest excluded from gross income for purposes of federal income taxation
which, under the provisions of federal tax law, may be issued in one year by issuers. new text begin
Employees of the department shall handle the volume cap allocations for obligations
permitted under the federal American Recovery and Reinvestment Act of 2009, whether
taxable or tax-exempt, in accordance with orders of the commissioner.
new text end

Sec. 19.

Minnesota Statutes 2008, section 474A.02, subdivision 14, is amended to read:

Subd. 14.

Manufacturing project.

"Manufacturing project" means any facility
which is used in the manufacturing or production of tangible personal property,
including the processing resulting in a change in the condition of the property new text begin , or in the
manufacturing, creation, or production of intangible property, including any patent,
copyright, formula, process, design, know how, format, or other similar item new text end .

Sec. 20.

Minnesota Statutes 2008, section 475.67, subdivision 8, is amended to read:

Subd. 8.

Escrow account securities.

Securities purchased for the escrow account
shall be limited to:

(a) general obligations of the United States, securities whose principal and interest
payments are guaranteed by the United States, and securities issued by the following
agencies of the United States: Banks for Cooperatives, Federal Home Loan Banks,
Federal Intermediate Credit Banks, Federal Land Banks, and the Federal National
Mortgage Association; or

(b) obligations issued or guaranteed by any state or any political subdivision of a
state, which at the date of purchase are rated new text begin in new text end the highest or the next highest rating
deleted text begin given deleted text end new text begin category new text end by Standard and Poor's Corporation, Moody's Investors Service, or a
similar nationally recognized rating agency, but not less than the rating on the refunded
bonds immediately prior to the refunding.

new text begin "Rating category," as used in this subdivision, means a generic securities rating
category, without regard in the case of a long-term rating category to any refinement or
gradation of such long-term rating category by a numerical modifier or otherwise.
new text end

Sec. 21.

Laws 1971, chapter 773, section 4, as amended by Laws 1976, chapter 234,
section 2, is amended to read:

Sec. 4. No proceeds of any bonds issued pursuant to section 1 hereof shall be
expended for the construction or equipment of any portion of the St. Paul auditorium or
civic center connected thereto; nor shall any proceeds be expended for the acquisition or
betterment of the building known as the Lowry Medical Arts Annex. All bonds issued
under this act shall mature at any time or times within ten new text begin or, for bonds for public buildings
or parking structures, 30 new text end years from the date of issue.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the city council and the
chief clerical officer of the city of St. Paul have timely completed their compliance with
Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 22.

Laws 2008, chapter 366, article 7, section 18, subdivision 3, is amended to
read:

Subd. 3.

Bonding authority.

Cook County may issue bonds under Minnesota
Statutes, chapter 475, to pay capital and administrative expenses for the projects
authorized in subdivision 2, in an amount that does not exceed deleted text begin $14,000,000 deleted text end new text begin $20,000,000 new text end .
An election to approve the bonds under Minnesota Statutes, section 475.58, is not
required. The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, sections 275.60 and 275.61. The debt represented by the bonds is not included
in computing any debt limitation applicable to the county, and any levy of taxes under
Minnesota Statutes, section 475.61, to pay principal and interest on the bonds is not
subject to any levy limitation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body
of Cook County and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 23. new text begin ST. PAUL PORT AUTHORITY CREDIT.
new text end

new text begin Notwithstanding Minnesota Statutes, section 474A.061, subdivision 4, the
commissioner of finance shall apply the $31,800 deposit paid in 2008 for a proposed issue
of $1,590,000 in tax exempt bonds by the St. Paul Port Authority for District Cooling
St. Paul, Inc. to an application for an allocation of tax exempt bonds by the St. Paul Port
Authority for the same project.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and expires January 1, 2011.
new text end

Sec. 24. new text begin REPEALER; CITY OF MINNEAPOLIS.
new text end

new text begin Laws 1959, chapter 577, sections 1, 2, 3, and 4, new text end new text begin are repealed.
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new text begin EFFECTIVE DATE. new text end

new text begin Pursuant to Minnesota Statutes, section 645.023, subdivision
1, clause (b), this section is effective without local approval the day following final
enactment.
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Sec. 25. new text begin EFFECTIVE DATE.
new text end

new text begin Except where provided otherwise, this act is effective the day following final
enactment.
new text end