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Minnesota Legislature

Office of the Revisor of Statutes

SF 1393

2nd Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

  1.1                          A bill for an act 
  1.2             relating to public finance; providing conditions and 
  1.3             requirements for the issuance of debt and use of the 
  1.4             proceeds; authorizing use of capital improvement bonds 
  1.5             for indoor ice arenas; exempting issuance of certain 
  1.6             debt from election requirements; modifying loans to 
  1.7             political subdivisions for fire or rescue purposes; 
  1.8             authorizing operation of certain recreational 
  1.9             facilities; authorizing continuing disclosure 
  1.10            agreements; providing for funding of self-insurance by 
  1.11            political subdivisions; providing for the issuance of 
  1.12            temporary obligations and modifying issuance and lease 
  1.13            procedures; renaming and modifying technical 
  1.14            provisions relating to incentives in enterprise zones; 
  1.15            amending Minnesota Statutes 1994, sections 373.40, 
  1.16            subdivision 1; 447.46; 462C.05, subdivision 1; 465.73; 
  1.17            469.041; 469.060, subdivision 1; 469.102, subdivision 
  1.18            1; 469.305, subdivisions 1 and 3; 469.306; 469.307; 
  1.19            469.309; 469.31; 471.16, subdivision 1; 471.191, 
  1.20            subdivisions 1 and 2; 471.98, subdivision 3; 471.981, 
  1.21            subdivisions 2, 4a, 4b, and 4c; 475.51, subdivision 4; 
  1.22            475.52, subdivision 6; 475.58, subdivision 1, and by 
  1.23            adding a subdivision; 475.60, by adding a subdivision; 
  1.24            475.61, by adding a subdivision; 475.63; and 475.79; 
  1.25            Laws 1994, chapter 643, section 14, subdivision 6; 
  1.26            proposing coding for new law in Minnesota Statutes, 
  1.27            chapter 373; repealing Minnesota Statutes 1994, 
  1.28            section 469.305, subdivision 2. 
  1.29  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.30     Section 1.  Minnesota Statutes 1994, section 373.40, 
  1.31  subdivision 1, is amended to read: 
  1.32     Subdivision 1.  [DEFINITIONS.] For purposes of this 
  1.33  section, the following terms have the meanings given. 
  1.34     (a) "Bonds" means an obligation as defined under section 
  1.35  475.51. 
  1.36     (b) "Capital improvement" means acquisition or betterment 
  1.37  of public lands, buildings, or other improvements within the 
  2.1   county for the purpose of a county courthouse, administrative 
  2.2   building, health or social service facility, correctional 
  2.3   facility, jail, law enforcement center, hospital, morgue, 
  2.4   library, park, qualified indoor ice arena, and roads and 
  2.5   bridges.  An improvement must have an expected useful life of 
  2.6   five years or more to qualify. "Capital improvement" does not 
  2.7   include light rail transit or any activity related to it or a 
  2.8   recreation or sports facility building (such as, but not limited 
  2.9   to, a gymnasium, ice arena, racquet sports facility, swimming 
  2.10  pool, exercise room or health spa), unless the building is part 
  2.11  of an outdoor park facility and is incidental to the primary 
  2.12  purpose of outdoor recreation. 
  2.13     (c) "Commissioner" means the commissioner of trade and 
  2.14  economic development. 
  2.15     (d) "Metropolitan county" means a county located in the 
  2.16  seven-county metropolitan area as defined in section 473.121 or 
  2.17  a county with a population of 90,000 or more. 
  2.18     (e) "Population" means the population established by the 
  2.19  most recent of the following (determined as of the date the 
  2.20  resolution authorizing the bonds was adopted): 
  2.21     (1) the federal decennial census, 
  2.22     (2) a special census conducted under contract by the United 
  2.23  States Bureau of the Census, or 
  2.24     (3) a population estimate made either by the metropolitan 
  2.25  council or by the state demographer under section 4A.02. 
  2.26     (f) "Qualified indoor ice arena" means a facility that 
  2.27  meets the requirements of section 2. 
  2.28     (g) "Tax capacity" means total taxable market value, but 
  2.29  does not include captured market value. 
  2.30     Sec. 2.  [373.43] [FINANCING AUTHORITY; ICE FACILITIES.] 
  2.31     A county may issue and sell its general obligations under 
  2.32  chapter 475 to finance acquisition and construction of an indoor 
  2.33  ice arena intended to be used predominantly for youth athletic 
  2.34  activities if all the following conditions are met. 
  2.35     (a) The obligations are secured by a pledge of revenues 
  2.36  from the facility. 
  3.1      (b) The county has entered into a qualified agreement.  A 
  3.2   qualified agreement means: 
  3.3      (1) a joint powers agreement with the school district or 
  3.4   the city in which the facility is located that governs 
  3.5   ownership, operation, and maintenance of the facility; or 
  3.6      (2) an agreement with a nonprofit corporation, qualifying 
  3.7   under section 501(c)(3) of the Internal Revenue Code of 1986, 
  3.8   that provides that the corporation will operate, manage, and 
  3.9   maintain the facility; or 
  3.10     (3) any combination of agreements under clauses (1) and (2).
  3.11     (c) The agreements under paragraph (b) provide that all 
  3.12  parties must pay the principal and interest on obligations, if 
  3.13  the revenues for the facility are insufficient to pay the 
  3.14  obligations in full. 
  3.15     (d) The county board finds, based on analysis provided by a 
  3.16  professional experienced in finance, that the facility's 
  3.17  revenues and other available money will be sufficient to pay the 
  3.18  obligations, without reliance on a property tax levy or the 
  3.19  general purpose state aid of the county or any party to a joint 
  3.20  powers agreement. 
  3.21     Sec. 3.  [373.44] [REVENUE FINANCING AUTHORITY; ICE 
  3.22  FACILITIES.] 
  3.23     For the purpose of acquiring, leasing, equipping, or 
  3.24  maintaining land or buildings for use as an indoor ice arena as 
  3.25  defined in section 2, a county has the same authority and powers 
  3.26  granted to a city by section 471.191. 
  3.27     Sec. 4.  Minnesota Statutes 1994, section 447.46, is 
  3.28  amended to read: 
  3.29     447.46 [REVENUE PLEDGED.] 
  3.30     The county, city, or hospital district may pledge and 
  3.31  appropriate the revenues to be derived from its operation of the 
  3.32  facilities, except related medical facilities, to pay the 
  3.33  principal and interest on the bonds when due and to create and 
  3.34  maintain reserves for that purpose, as a first and prior lien on 
  3.35  the revenues or, if so provided in the bond resolution, as a 
  3.36  lien on the revenues subordinate to the current payment of a 
  4.1   fixed amount or percentage or all of the costs of running the 
  4.2   facilities.  
  4.3      Sec. 5.  Minnesota Statutes 1994, section 462C.05, 
  4.4   subdivision 1, is amended to read: 
  4.5      Subdivision 1.  A city may also include in the housing 
  4.6   plan, a program or programs to administer, and make or purchase 
  4.7   a loan or loans to finance one or more multifamily housing 
  4.8   developments within its boundaries, of the kind described in 
  4.9   subdivision 2, 3, 4 or 7, and upon the conditions set forth in 
  4.10  this section.  A loan may be made or purchased for 
  4.11     (a) the acquisition and preparation of a site and the 
  4.12  construction of a new development, 
  4.13     (b) the rehabilitation of an existing building and site and 
  4.14  the discharge of any lien or other interest in the building and 
  4.15  site, 
  4.16     (c) for the acquisition of an existing building and site 
  4.17  and the rehabilitation thereof, 
  4.18     (d) for the acquisition of an existing building and site 
  4.19  for purposes of conversion to limited equity cooperative 
  4.20  ownership by low or moderate income families, or 
  4.21     (e) for the acquisition, or acquisition and improvement, of 
  4.22  an existing building and site by a nonprofit corporation which 
  4.23  will operate the building as a multifamily housing development 
  4.24  for rental primarily to elderly or handicapped persons, or 
  4.25     (f) the taking out of accumulated equity in connection with 
  4.26  a program of federal insurance for the preservation of 
  4.27  low-income housing. 
  4.28     With respect to loans made or purchased pursuant to clause 
  4.29  (b) or (c), the cost of rehabilitation of an existing building 
  4.30  must be estimated to equal at least $1,000 per dwelling unit or 
  4.31  20 percent of the appraised value of the original building and 
  4.32  site whichever is less, except that with respect to 
  4.33  rehabilitation which consists primarily of improvement of the 
  4.34  property with facilities or improvements to conserve energy or 
  4.35  convert or retrofit for use of alternative energy sources, 
  4.36  rehabilitation loans may be made without regard to cost; and at 
  5.1   least a substantial portion of such rehabilitation cost must be 
  5.2   estimated to be incurred for compliance with building codes or 
  5.3   conservation of energy. 
  5.4      Each development upon completion shall comply with all 
  5.5   applicable code requirements.  A loan or loans may be made or 
  5.6   purchased for either the construction or the long-term financing 
  5.7   of a development, or both, including the financing of the 
  5.8   acquisition of dwelling units and interests in common facilities 
  5.9   provided therein, by persons to whom such units and facilities 
  5.10  may be sold as contemplated in chapter 515 or 515A or any 
  5.11  supplemental or amendatory law thereof or as contemplated for a 
  5.12  development consisting of cooperative housing.  
  5.13     Substantially all of the proceeds of each loan shall be 
  5.14  used to pay the cost of a multifamily housing development, 
  5.15  including property functionally related and subordinate to it; 
  5.16  but nothing herein prevents the construction or acquisition of 
  5.17  the development over, under, or adjacent to, and in conjunction 
  5.18  with facilities to be used for purposes other than housing. 
  5.19     Sec. 6.  Minnesota Statutes 1994, section 465.73, is 
  5.20  amended to read: 
  5.21     465.73 [TOWN HALLS; FIRE HALLS OR RESCUE EQUIPMENT; LOANS 
  5.22  TO POLITICAL SUBDIVISIONS.] 
  5.23     For purposes of constructing, repairing, or acquiring town 
  5.24  halls, fire halls or fire or rescue equipment any city, county, 
  5.25  or town may borrow up to $250,000 from funds granted to a rural 
  5.26  electric cooperative organized under chapter 308A by, directly 
  5.27  from or guaranteed by the Farmers Home Administration or other 
  5.28  agency of the United States Department of Agriculture on a note 
  5.29  secured by a mortgage on the property purchased with the 
  5.30  borrowed funds.  The city, county, or town may assign or pledge 
  5.31  revenues from the town halls, fire or rescue department, or fire 
  5.32  hall or any other available funds, including taxes levied 
  5.33  pursuant to section 475.61 to the Farmers Home Administration or 
  5.34  other agency of the United States Department of Agriculture or 
  5.35  its guaranteed lender or a rural electric cooperative organized 
  5.36  under chapter 308A as its grantee to repay the loan.  The amount 
  6.1   of the obligation shall not be included when computing the net 
  6.2   debt of the city, county, or town.  An election shall not be 
  6.3   required to authorize the note and mortgage or assignment of 
  6.4   revenues. 
  6.5      Sec. 7.  Minnesota Statutes 1994, section 469.041, is 
  6.6   amended to read: 
  6.7      469.041 [STATE PUBLIC BODIES, POWERS AS TO PROJECTS.] 
  6.8      For the purpose of aiding and cooperating in the planning, 
  6.9   undertaking, construction, or operation of projects, any state 
  6.10  public body may upon the terms, with or without consideration, 
  6.11  as it may determine: 
  6.12     (1) Dedicate, sell, convey, or lease any of its interests 
  6.13  in any property, or grant easements, licenses, or any other 
  6.14  rights or privileges therein to an authority.  Except in cities 
  6.15  of the first class having a population of less than 200,000, the 
  6.16  public body may pay the bonds of or make loans or contributions 
  6.17  for redevelopment projects, and the receipt or expenditure of 
  6.18  any money expended hereunder by the state public body shall not 
  6.19  be included within the definition of any limitation imposed on 
  6.20  per capita taxing or spending in the charter of the state public 
  6.21  body.  No state public body may use any revenues or money of 
  6.22  that state public body to pay the bonds of or make any loans or 
  6.23  contributions to any public housing project, except to a public 
  6.24  low-rent housing project (i) for which financial assistance is 
  6.25  provided by the federal government which requires a municipality 
  6.26  or other local public body to use its revenues or money for a 
  6.27  direct loan or grant to the project as a condition for federal 
  6.28  financial assistance and (ii) where the local financial 
  6.29  assistance for the project is authorized by resolution of the 
  6.30  governing body of the municipality; 
  6.31     (2) Cause parks, playgrounds, recreational, community, 
  6.32  education, water, sewer or drainage facilities, or any other 
  6.33  works which it may undertake, to be furnished adjacent to or in 
  6.34  connection with such projects; 
  6.35     (3) Approve, through its governing body or through an 
  6.36  agency designated by it for the purpose, redevelopment plans, 
  7.1   plan or replan, zone or rezone its parks; in the case of a city 
  7.2   or town, make changes in its map; the governing body of any city 
  7.3   may waive any building code requirements in connection with the 
  7.4   development of projects; 
  7.5      (4) Cause services to be furnished to the authority of the 
  7.6   character which it may otherwise furnish; 
  7.7      (5) Enter into agreements with respect to the exercise by 
  7.8   it of its powers relating to the repair, closing, or demolition 
  7.9   of unsafe, unsanitary, or unfit buildings; 
  7.10     (6) Do any and all things necessary or convenient to aid 
  7.11  and cooperate in the planning, undertaking, construction, or 
  7.12  operation of the projects; 
  7.13     (7) Incur the entire expense of any public improvements 
  7.14  made by it in exercising the powers granted in sections 469.001 
  7.15  to 469.047; 
  7.16     (8) Enter into agreements with an authority respecting 
  7.17  action to be taken by the state public body pursuant to any of 
  7.18  the powers granted by sections 469.001 to 469.047; the 
  7.19  agreements may extend over any period, notwithstanding any law 
  7.20  to the contrary; and 
  7.21     (9) Furnish funds available to it from any source, 
  7.22  including the proceeds of bonds, to an authority to pay all or 
  7.23  any part of the cost to the authority of the activities 
  7.24  authorized by section 469.012, subdivision 1, clause (7); and 
  7.25     (10) With respect to a housing development project and 
  7.26  bonds which an authority has issued for the project, exercise 
  7.27  the powers available to a city under section 471.191, 
  7.28  subdivision 2, as though the project were a recreational 
  7.29  program; provided that this power may only be exercised by a 
  7.30  city or county in which the project is located or in accordance 
  7.31  with a joint powers agreement with other cities or counties that 
  7.32  have authorized the exercise of the powers for other projects as 
  7.33  part of a common financing plan. 
  7.34     Sec. 8.  Minnesota Statutes 1994, section 469.060, 
  7.35  subdivision 1, is amended to read: 
  7.36     Subdivision 1.  [POWER; PROCEDURE.] A port authority may 
  8.1   issue bonds in the principal amount authorized by its city's 
  8.2   council.  The bonds may be issued in anticipation of income from 
  8.3   any source.  The bonds may be issued:  (1) to secure funds 
  8.4   needed by the authority to pay for acquired property or (2) for 
  8.5   other purposes in sections 469.049, 469.050, and 469.058 to 
  8.6   469.068.  The bonds must be in the amount and form and bear 
  8.7   interest at the rate set by the city council.  The authority 
  8.8   shall sell the bonds to the highest bidder.  The authority shall 
  8.9   publish notice of the time and the place for receiving bids once 
  8.10  at least two weeks before the bid deadline.  Except as otherwise 
  8.11  provided in sections 469.048 to 469.068, the issuance of the 
  8.12  bonds is governed by chapter 475.  The port authority when 
  8.13  issuing the bonds is a municipal corporation under chapter 475.  
  8.14  Notwithstanding any contrary city charter provision or any 
  8.15  general or special law, the bonds may be issued and sold without 
  8.16  submission of the question to the electors of the city, provided 
  8.17  that the ordinance of the governing body of the city authorizing 
  8.18  issuance of the bonds by the port authority shall be subject to 
  8.19  any provisions in the city charter pertaining to the procedure 
  8.20  for referendum on ordinances enacted by the governing body. 
  8.21     Sec. 9.  Minnesota Statutes 1994, section 469.102, 
  8.22  subdivision 1, is amended to read: 
  8.23     Subdivision 1.  [AUTHORITY; PROCEDURE.] An economic 
  8.24  development authority may issue general obligation bonds in the 
  8.25  principal amount authorized by two-thirds majority vote of its 
  8.26  city's council.  The bonds may be issued in anticipation of 
  8.27  income from any source.  The bonds may be issued:  (1) to secure 
  8.28  funds needed by the authority to pay for acquired property or 
  8.29  (2) for other purposes in sections 469.090 to 469.108.  The 
  8.30  bonds must be in the amount and form and bear interest at the 
  8.31  rate set by the city council.  The authority shall sell the 
  8.32  bonds to the highest bidder.  The authority shall publish notice 
  8.33  of the time and the place for receiving bids, once at least two 
  8.34  weeks before the bid deadline.  Except as otherwise provided in 
  8.35  sections 469.090 to 469.108, the issuance of the bonds is 
  8.36  governed by chapter 475.  The authority when issuing the bonds 
  9.1   is a municipal corporation under chapter 475.  
  9.2      Sec. 10.  Minnesota Statutes 1994, section 469.305, 
  9.3   subdivision 1, is amended to read: 
  9.4      Subdivision 1.  [INCOME OR FRANCHISE TAX CREDIT INCENTIVE 
  9.5   GRANTS.] An income or corporate franchise tax credit incentive 
  9.6   grant is available to businesses located in an enterprise zone 
  9.7   that meet the conditions of this section.  Each city designated 
  9.8   as an enterprise zone is allocated $3,000,000 to be used to 
  9.9   provide credits grants under this section for the duration of 
  9.10  the program.  Each city of the second class designated as an 
  9.11  economically depressed area by the United States Department of 
  9.12  Commerce is allocated $300,000 to be used to provide credits 
  9.13  grants under this section for the duration of the program.  For 
  9.14  fiscal year 1998 and subsequent years, the proration in section 
  9.15  469.31 shall continue to apply until the amount designated in 
  9.16  this subdivision is expended. 
  9.17     The credit incentive grant is in an amount equal to 20 
  9.18  percent of the wages paid to an employee, not to exceed $5,000 
  9.19  per employee per taxable calendar year.  The credit incentive 
  9.20  grant is available to an employer for a zone resident employed 
  9.21  in the zone at full-time wage levels of not less than 170 
  9.22  percent of minimum wage.  The credit incentive grant is not 
  9.23  available to workers employed in construction or employees of 
  9.24  financial institutions, gambling enterprises, public utilities, 
  9.25  sports, fitness, and health facilities, or racetracks.  The 
  9.26  employee must be employed at that rate at the time the business 
  9.27  applies for a tax credit grant, and must have been employed for 
  9.28  at least one year at the business.  The credit applies to A 
  9.29  grant may be provided only for new jobs; for purposes of this 
  9.30  section, a "new job" is a job that did not exist in Minnesota 
  9.31  before May 6, 1994.  The credit is applicable to The incentive 
  9.32  grant authority is available for the five taxable calendar years 
  9.33  after the application has been approved to the extent the 
  9.34  allocation to the city remains available to fund the credit 
  9.35  grants, and provided that if the city certifies to the 
  9.36  commissioner on an annual basis that the business is in 
 10.1   compliance with the plan to recruit, hire, train, and retain 
 10.2   zone residents. 
 10.3      Sec. 11.  Minnesota Statutes 1994, section 469.305, 
 10.4   subdivision 3, is amended to read: 
 10.5      Subd. 3.  [REVIEW AND ANALYSIS.] The city must submit 
 10.6   the proposed tax credit incentive grant proposal to the 
 10.7   commissioner for approval.  The proposal shall include a plan to 
 10.8   recruit, hire, train, and retain zone residents.  The tax credit 
 10.9   proposal shall be approved unless the commissioner finds that 
 10.10  the proposal is not in conformity with the provisions of 
 10.11  sections 469.301 to 469.308. 
 10.12     If the city submits the tax credit incentive grant proposal 
 10.13  to the commissioner before the expiration of the zone 
 10.14  designation under section 469.302, subdivision 2, the authority 
 10.15  of the commissioner to approve the tax credit proposal continues 
 10.16  until the commissioner acts on the proposal. 
 10.17     Sec. 12.  Minnesota Statutes 1994, section 469.306, is 
 10.18  amended to read: 
 10.19     469.306 [REVOCATION.] 
 10.20     The commissioner may revoke a business' tax credit 
 10.21  incentive grant if the applicant has not proceeded in good faith 
 10.22  with its operations in a manner which is consistent with the 
 10.23  purpose of sections 469.301 to 469.308 and is possible under 
 10.24  circumstances reasonably within the control of the applicant. 
 10.25     The commissioner may reconsider the revocation of the tax 
 10.26  credit incentive grant if the business provides evidence that 
 10.27  circumstances of its failure to proceed were beyond its control 
 10.28  or that it did not act in bad faith. 
 10.29     Sec. 13.  Minnesota Statutes 1994, section 469.307, is 
 10.30  amended to read: 
 10.31     469.307 [RECAPTURE.] 
 10.32     Subdivision 1.  [TERMINATION OF OPERATIONS; OTHER 
 10.33  VIOLATIONS.] Any business that receives a tax credit authorized 
 10.34  by an incentive grant under section 469.305 and ceases to 
 10.35  operate or otherwise violates the criteria for obtaining 
 10.36  the credit grant for its facility located within the enterprise 
 11.1   zone within seven years after the first receipt of a credit 
 11.2   grant by the business shall repay the portion of the tax credit 
 11.3   grant received as provided in the following schedule: 
 11.4        Termination of Operations           Repayment of Portion
 11.5            or Other Violations
 11.6        Less than two years                      100 percent
 11.7        Between two years and four years         75 percent
 11.8        Between four years and seven years       50 percent
 11.9        More than seven years                    0 percent
 11.10     Subd. 2.  [REPAYMENT.] The repayment must be paid to the 
 11.11  state.  The amount repaid must be credited to the amount 
 11.12  certified as available for tax credits incentive grants in the 
 11.13  zone under section 469.305. 
 11.14     Subd. 3.  [LIEN.] If an event occurs that creates an 
 11.15  obligation under subdivision 1 to repay all or part of the tax 
 11.16  credit incentive grant, the repayment obligation immediately 
 11.17  becomes a lien against the business' real and personal property 
 11.18  located in Minnesota, including the property of subsidiaries, 
 11.19  parents, and related corporations.  A lien against real property 
 11.20  under this subdivision has the same legal effect and must be 
 11.21  collected in the same manner as unpaid real property taxes.  
 11.22     Sec. 14.  Minnesota Statutes 1994, section 469.309, is 
 11.23  amended to read: 
 11.24     469.309 [RURAL JOB CREATION CREDIT GRANTS.] 
 11.25     Subdivision 1.  [CREDIT FOR JOB CREATION GRANTS.] The 
 11.26  commissioner of trade and economic development may approve a 
 11.27  credit against the tax due under chapter 290 an incentive grant 
 11.28  for an eligible business beginning with the first taxable year 
 11.29  after December 31, 1994 calendar year 1995.  The maximum credit 
 11.30  available grant is $5,000 per eligible employee.  The 
 11.31  actual credit grant is based on the following schedule: 
 11.32     $2,000 for each eligible employee with wages greater than 
 11.33  or equal to 170 percent and less than 200 percent of the minimum 
 11.34  wage; 
 11.35     $3,000 for each eligible employee with wages greater than 
 11.36  or equal to 200 percent and less than 250 percent of the minimum 
 12.1   wage; 
 12.2      $4,000 for each eligible employee with wages greater than 
 12.3   or equal to 250 percent and less than 300 percent of the minimum 
 12.4   wage; and 
 12.5      $5,000 for each eligible employee with wages greater than 
 12.6   or equal to 300 percent of the minimum wage. 
 12.7      The total credit grant for an employer is equal to the 
 12.8   actual credit grant multiplied by the number of employees 
 12.9   eligible for that credit grant.  For purposes of this section 
 12.10  "minimum wage" means the minimum wage that is required by 
 12.11  federal law.  An eligible business may apply for a rural job 
 12.12  creation credit grant only once for each new job.  The credit is 
 12.13  refundable. 
 12.14     Subd. 2.  [ELIGIBLE BUSINESS.] An employer eligible for a 
 12.15  job credit creation incentive grant under this section must (1) 
 12.16  be located outside the metropolitan area as defined under 
 12.17  section 473.121 (2) create at least ten qualifying new jobs in a 
 12.18  two-year period, and (3) consist of a for-profit business.  For 
 12.19  the purposes of this section, a "qualifying new job" is a job 
 12.20  that did not exist in Minnesota before May 6, 1994. 
 12.21     Subd. 3.  [ELIGIBLE EMPLOYEE.] To be eligible for a 
 12.22  credit grant, the employee must be employed full time by an 
 12.23  eligible business at a wage level of not less than 170 percent 
 12.24  of the minimum wage at the time the eligible business applies 
 12.25  for the credit grant and must have been employed there at that 
 12.26  wage level for a minimum of 12 months.  The credit grant applies 
 12.27  only to new jobs created at the eligible business after May 6, 
 12.28  1994. 
 12.29     Subd. 4.  [RESTRICTIONS.] The tax credits incentive grants 
 12.30  provided by this section do not apply to racetracks, financial 
 12.31  institutions, gambling enterprises, public utilities, or sports, 
 12.32  fitness, and health facilities.  An employer is not eligible for 
 12.33  a tax credit an incentive grant if the commissioner determines 
 12.34  that the position held by the employee for which the business is 
 12.35  seeking a credit grant was transferred from an enterprise 
 12.36  conducted by substantially the same business enterprise at 
 13.1   another site in the state. 
 13.2      Sec. 15.  Minnesota Statutes 1994, section 469.31, is 
 13.3   amended to read: 
 13.4      469.31 [LIMIT ON TAX CREDITS GRANTS; APPROPRIATION.] 
 13.5      The maximum amount of tax credits allowable incentive 
 13.6   grants payable under sections 469.305 and 469.309 is $900,000 
 13.7   for fiscal year 1997.  Of that amount, one-third must be 
 13.8   allocated to the city of Minneapolis, one-third to the city of 
 13.9   St. Paul, and one-third to the remaining cities.  Of the amounts 
 13.10  allocated to the cities of Minneapolis and St. Paul, $25,000 
 13.11  must be subtracted from each city's allocation and is 
 13.12  appropriated to the commissioner of economic security for 
 13.13  administration of this program, provided that $25,000 of the 
 13.14  appropriation is for fiscal year 1996 and $25,000 is for fiscal 
 13.15  year 1997.  Of the amount allocated to the remaining cities, a 
 13.16  minimum of $60,000 must be allocated to the city of South St. 
 13.17  Paul.  No tax credits are allowable incentive grants may be paid 
 13.18  before fiscal year 1997.  If the commissioner of revenue 
 13.19  economic security estimates by March 1, 1996, that tax credits 
 13.20  incentive grants for fiscal year 1997 will exceed $900,000, the 
 13.21  commissioner shall proportionately reduce each city's allocation 
 13.22  to remain within the limit.  The amount necessary to pay the 
 13.23  allocations for grants under this section are appropriated to 
 13.24  the commissioner of trade and economic development and the 
 13.25  commissioner of economic security. 
 13.26     Sec. 16.  Minnesota Statutes 1994, section 471.16, 
 13.27  subdivision 1, is amended to read: 
 13.28     Subdivision 1.  Any city, however organized, or any town, 
 13.29  county, school district, or any board thereof, or any 
 13.30  incorporated post of the American Legion or any other 
 13.31  incorporated veterans' organization, may operate such a program 
 13.32  independently, or they may cooperate among themselves or with 
 13.33  any nonprofit organization in its conduct and in any manner in 
 13.34  which they may mutually agree; or they may delegate the 
 13.35  operation of the program to a recreation board created by one or 
 13.36  more of them, and appropriate money voted for this purpose to 
 14.1   such board which may in turn support or cooperate with a 
 14.2   nonprofit organization.  In the case of school districts after 
 14.3   May 15, 1978, the right to enter into such agreements with any 
 14.4   other corporation, board or body hereinbefore designated where 
 14.5   bonds are issued by the other party and revenue pledged for 
 14.6   bonds issued pursuant to section 471.191, shall be authorized 
 14.7   only upon obtaining the approval of a majority of the electors 
 14.8   voting on the question at a regular or special school election. 
 14.9      Sec. 17.  Minnesota Statutes 1994, section 471.191, 
 14.10  subdivision 1, is amended to read: 
 14.11     Subdivision 1.  Any city operating a program of public 
 14.12  recreation and playgrounds pursuant to sections 471.15 to 471.19 
 14.13  may acquire or lease, equip, and maintain land, buildings, and 
 14.14  other recreational facilities, including, but without 
 14.15  limitation, outdoor or indoor swimming pools, skating rinks and 
 14.16  arenas, athletic fields, golf courses, marinas, concert halls, 
 14.17  museums, and facilities for other kinds of athletic or cultural 
 14.18  participation, contests, and exhibitions, together with related 
 14.19  automobile parking facilities as defined in section 459.14, and 
 14.20  may expend funds for the operation of such program and borrow 
 14.21  and expend funds for capital costs thereof pursuant to the 
 14.22  provisions of this section.  A school district operating a 
 14.23  program of public recreation and playgrounds has the rights 
 14.24  provided in this section.  Any facilities to be operated by a 
 14.25  nonprofit corporation, as contemplated in section 471.16, may be 
 14.26  leased to the corporation upon such rentals and for such term, 
 14.27  not exceeding 30 years, and subject to such other provisions as 
 14.28  may be agreed; including but not limited to provisions (a) 
 14.29  permitting the lessee, subject to whatever conditions are 
 14.30  stated, to provide for the construction and equipment of the 
 14.31  facilities by any means available to it and in the manner 
 14.32  determined by it, without advertisement for bids as required for 
 14.33  other municipal facilities, and (b) granting the lessee the 
 14.34  option to renew the lease upon such conditions and rentals, or 
 14.35  to purchase the facilities at such price, as may be agreed; 
 14.36  provided that (c) any such lease shall require the lessee to pay 
 15.1   net rentals sufficient to pay the principal, interest, 
 15.2   redemption premiums, and other expenses when due with respect to 
 15.3   all city bonds issued for the acquisition or betterment of the 
 15.4   facilities, less such amount of taxes and special assessments, 
 15.5   if any, as may become payable in any year of the term of the 
 15.6   lease, on the land, building, or other facilities leased, and 
 15.7   (d) no option shall be granted to purchase the facilities at any 
 15.8   time at a price less than the amount required to pay all 
 15.9   principal and interest to become due on such bonds to the 
 15.10  earliest date or dates on which they may be paid and redeemed, 
 15.11  and all redemption premiums and other expenses of such payment 
 15.12  and redemption.  
 15.13     Sec. 18.  Minnesota Statutes 1994, section 471.191, 
 15.14  subdivision 2, is amended to read: 
 15.15     Subd. 2.  Any such city may issue bonds pursuant to chapter 
 15.16  475, for the acquisition and betterment of land, buildings, and 
 15.17  facilities for the purpose of carrying out the powers granted by 
 15.18  this section.  Such bonds, unless authorized as general 
 15.19  obligations of the issuer pursuant to approval of the electors 
 15.20  or pursuant to another law or charter provision permitting such 
 15.21  issuance without an election, shall be payable solely from the 
 15.22  income of land, buildings, and facilities used or useful for the 
 15.23  operation of the program, but may be secured by a pledge to the 
 15.24  bondholders, or to a trustee, of all income and revenues of 
 15.25  whatsoever nature derived from any such land, buildings, and 
 15.26  facilities, as a first charge on the gross revenues thereof to 
 15.27  the extent necessary to pay the bonds and interest thereon when 
 15.28  due and to accumulate and maintain an additional reserve for 
 15.29  that purpose in an amount equal to the total amount of payments 
 15.30  to become due in any fiscal year.  In this event the governing 
 15.31  body of the issuer may by resolution or trust indenture define 
 15.32  the land, buildings, or facilities, the revenues of which are 
 15.33  pledged, and establish covenants and agreements to be made by 
 15.34  the issuer for the security of the bonds, including a covenant 
 15.35  that the issuer will establish, maintain, revise when necessary, 
 15.36  and collect charges for all services, products, use, and 
 16.1   occupancy of the land, buildings, and facilities, in the amounts 
 16.2   and at the times required to produce the revenues pledged, and 
 16.3   also sufficient, with any other funds appropriated by the 
 16.4   governing body from time to time, to provide adequately for the 
 16.5   operation and maintenance of the land, buildings, and 
 16.6   facilities.  After the issuance of any bonds for which revenues 
 16.7   are so pledged, the governing body of the issuer shall provide 
 16.8   in its budget each year for any anticipated deficiency in the 
 16.9   revenues available for such operation and maintenance.  For this 
 16.10  purpose any issuer may levy a tax on the taxable property within 
 16.11  its boundaries, in excess of taxes which may otherwise be levied 
 16.12  within charter limitations, provided the excess levy for a city 
 16.13  subject to a charter limitation is approved by a majority of its 
 16.14  electors voting on the question at a regular or special 
 16.15  election.  The authority to levy additional taxes granted herein 
 16.16  shall not apply to cities or towns in which the net tax capacity 
 16.17  consists in part of iron ore or lands containing taconite or 
 16.18  semitaconite.  
 16.19     Sec. 19.  Minnesota Statutes 1994, section 471.98, 
 16.20  subdivision 3, is amended to read: 
 16.21     Subd. 3.  [POOL.] "Pool" means any self-insurance fund or 
 16.22  agreement for the reciprocal assumption of risk established by 
 16.23  or among two or more political subdivisions for coverage of 
 16.24  their respective risks including, but not limited to, the pools 
 16.25  described in section 471.982, subdivision 3.  
 16.26     Sec. 20.  Minnesota Statutes 1994, section 471.981, 
 16.27  subdivision 2, is amended to read: 
 16.28     Subd. 2.  A political subdivision may establish a self 
 16.29  insurance revolving fund.  The initial amount of the fund shall 
 16.30  be determined by the governing body.  The governing body may 
 16.31  appropriate the amounts necessary to maintain the fund at the 
 16.32  level specified in the ordinance or resolution establishing it.  
 16.33  Expenditures from the fund may be made for:  
 16.34     (a) Payment of losses; 
 16.35     (b) Costs of defense and investigation; 
 16.36     (c) Premiums and deductible amounts when commercial 
 17.1   insurance is purchased for a risk; 
 17.2      (d) Debt service and debt service related expenses for 
 17.3   bonds issued under this section; 
 17.4      (e) Cost of loss control activities; and 
 17.5      (e) (f) Any other costs customarily borne by commercial 
 17.6   insurers under conventional insurance policies.  
 17.7      Sec. 21.  Minnesota Statutes 1994, section 471.981, 
 17.8   subdivision 4a, is amended to read: 
 17.9      Subd. 4a.  [INSURANCE INSTALLMENT PURCHASE AGREEMENT.] 
 17.10  A county political subdivision may, by resolution of its 
 17.11  governing body, and without advertisement for bids, enter into 
 17.12  an insurance installment purchase agreement with a 
 17.13  self-insurance pool created under subdivision 3.  Such a 
 17.14  self-insurance pool may purchase insurance on behalf of the 
 17.15  participating counties political subdivisions and may use 
 17.16  insurance installment purchase agreements or other obligations 
 17.17  of the participating counties political subdivisions to provide 
 17.18  the participating counties political subdivisions with coverage 
 17.19  against all or any part of the risks enumerated in subdivision 1 
 17.20  and against any risk which the county political subdivision is 
 17.21  authorized to insure under section 176.181, subdivision 1.  The 
 17.22  Notwithstanding any limitations set forth under section 475.52, 
 17.23  a political subdivision which has established a self-insurance 
 17.24  revolving fund under subdivision 2 or self-insurance pool may 
 17.25  fund insurance claims and reserves and finance insurance 
 17.26  installment purchase agreements for the political subdivision, 
 17.27  self-insurance pool, or a mutual insurance company established 
 17.28  pursuant to subdivision 4 and fund other costs set forth in 
 17.29  subdivision 2 by issuing revenue bonds, bonds which are general 
 17.30  obligations of the self-insurance pool or mutual insurance 
 17.31  company, as applicable, or other obligations secured by payments 
 17.32  made or to be made by the participating counties political 
 17.33  subdivisions or pool.  An insurance installment purchase 
 17.34  agreement of a participating county political subdivision may 
 17.35  require that the county political subdivision make payments 
 17.36  sufficient to produce revenue for the prompt payment of the 
 18.1   bonds or other obligations, including all interest and premiums, 
 18.2   if any, accruing on them.  The insurance installment purchase 
 18.3   agreements may provide for additional contributions or premiums 
 18.4   if it is actuarially determined that the assets of the insurance 
 18.5   installment purchase agreements available to pay claims are 
 18.6   insufficient.  The insurance installment purchase agreements may 
 18.7   be multiyear contracts and shall not be subject to any 
 18.8   referendum, public bidding, or net debt limitation requirement 
 18.9   of chapter 475.  
 18.10     Sec. 22.  Minnesota Statutes 1994, section 471.981, 
 18.11  subdivision 4b, is amended to read: 
 18.12     Subd. 4b.  [BOND ISSUE FOR INSURANCE PROCUREMENT OR 
 18.13  SELF-INSURANCE.] A self-insurance pool of counties may issue 
 18.14  bonds which are general obligations of the self-insurance pool 
 18.15  or revenue bonds secured by insurance installment purchase 
 18.16  agreements of the participating counties political subdivisions 
 18.17  issued pursuant to subdivision 4a.  The self-insurance pool, 
 18.18  with the approval of the governing body of each 
 18.19  participating county political subdivision, shall fix the total 
 18.20  amount needed for the procurement of insurance and shall 
 18.21  apportion to each participating county political subdivision the 
 18.22  county's political subdivision's share of that amount and of the 
 18.23  costs of operation, or of annual debt service or payments 
 18.24  required to pay such amount with interest.  Notwithstanding any 
 18.25  limitations set forth under section 475.52, or any other general 
 18.26  or special law or charter to the contrary, a political 
 18.27  subdivision may issue revenue bonds or other obligations to 
 18.28  provide funds for the purposes, including self-insurance, 
 18.29  authorized by this section.  Any other law notwithstanding, 
 18.30  bonds or other obligations issued under this subdivision may be 
 18.31  sold at public or private sale upon the terms and conditions the 
 18.32  issuer determines.  No election shall be required to authorize 
 18.33  the issuance of the obligations, and the obligations shall not 
 18.34  be subject to any limitation on net debt.  Notwithstanding any 
 18.35  limitation imposed by section 475.54, the obligations shall 
 18.36  mature in the years the issuer determines.  In addition to 
 19.1   permitted uses described above, proceeds of obligations issued 
 19.2   pursuant to this subdivision may be used to establish a debt 
 19.3   service reserve for the obligations, pay costs of issuing the 
 19.4   bonds or to refund obligations previously issued pursuant to 
 19.5   this subdivision.  Any debt service reserve fund established 
 19.6   under this subdivision shall not be subject to investment 
 19.7   guidelines set forth in chapters 118 and 475.  A self-insurance 
 19.8   pool An issuer of bonds authorized under this subdivision may 
 19.9   designate a bank or trust company authorized to exercise trust 
 19.10  powers in this state as trustee for the holders of obligations 
 19.11  issued pursuant to this subdivision and may create funds and 
 19.12  accounts necessary to secure payment of the obligations.  Sales 
 19.13  proceeds of bonds issued under this subdivision, except for 
 19.14  sales proceeds used to pay costs of issuing the bonds shall be 
 19.15  invested so that the average life of the investments exceeds the 
 19.16  average life of the bonds.  The proceeds from bonds issued under 
 19.17  this subdivision must be held in trust and may only be paid to 
 19.18  the self-insurer according to the schedule of payments set forth 
 19.19  in the trust instruments. 
 19.20     A qualified actuary shall certify that the amount of the 
 19.21  scheduled payment does not exceed the amount necessary to meet 
 19.22  the obligation of the self-insurer at the time payment is 
 19.23  scheduled to be made. 
 19.24     Notwithstanding the investment limitations imposed in 
 19.25  chapters 118 and 475, proceeds of bonds issued pursuant to this 
 19.26  subdivision, and debt service funds and reserves held in 
 19.27  connection with them shall be invested solely in governmental 
 19.28  bonds, notes, bills, and other securities, which are direct 
 19.29  obligations or are guaranteed or insured issues of the United 
 19.30  States, its agencies, its instrumentalities, or organizations 
 19.31  created by act of Congress, excluding mortgage-backed securities.
 19.32     If required by the resolution authorizing the issuance of 
 19.33  obligations pursuant to this subdivision, the governing body of 
 19.34  each participating county political subdivision shall annually 
 19.35  levy a tax sufficient to repay the costs of retirement of any 
 19.36  bonds or to make payments under insurance installment purchase 
 20.1   agreements.  Taxes may be levied pursuant to this subdivision 
 20.2   without limitation as to rate or amount.  
 20.3      Sec. 23.  Minnesota Statutes 1994, section 471.981, 
 20.4   subdivision 4c, is amended to read: 
 20.5      Subd. 4c.  [INSURANCE INSTALLMENT PURCHASE; INTEREST RATE.] 
 20.6   Participating counties political subdivisions may delegate to a 
 20.7   self-insurance pool of counties political subdivisions the power 
 20.8   to determine the interest rate on insurance installment purchase 
 20.9   agreements provided that the rate is uniform and does not exceed 
 20.10  the net effective rate on revenue bonds or other obligations 
 20.11  sold by or on behalf of the pool by more than one-fourth of one 
 20.12  percent. 
 20.13     Sec. 24.  Minnesota Statutes 1994, section 475.51, 
 20.14  subdivision 4, is amended to read: 
 20.15     Subd. 4.  [NET DEBT.] "Net debt" means the amount remaining 
 20.16  after deducting from its gross debt the amount of current 
 20.17  revenues which are applicable within the current fiscal year to 
 20.18  the payment of any debt and the aggregate of the principal of 
 20.19  the following: 
 20.20     (1) Obligations issued for improvements which are payable 
 20.21  wholly or partly from the proceeds of special assessments levied 
 20.22  upon property specially benefited thereby, including those which 
 20.23  are general obligations of the municipality issuing them, if the 
 20.24  municipality is entitled to reimbursement in whole or in part 
 20.25  from the proceeds of the special assessments. 
 20.26     (2) Warrants or orders having no definite or fixed maturity.
 20.27     (3) Obligations payable wholly from the income from revenue 
 20.28  producing conveniences. 
 20.29     (4) Obligations issued to create or maintain a permanent 
 20.30  improvement revolving fund. 
 20.31     (5) Obligations issued for the acquisition, and betterment 
 20.32  of public waterworks systems, and public lighting, heating or 
 20.33  power systems, and of any combination thereof or for any other 
 20.34  public convenience from which a revenue is or may be derived. 
 20.35     (6) Debt service loans and capital loans made to a school 
 20.36  district under the provisions of sections 124.42 and 124.431. 
 21.1      (7) Amount of all money and the face value of all 
 21.2   securities held as a debt service fund for the extinguishment of 
 21.3   obligations other than those deductible under this subdivision. 
 21.4      (8) Obligations to repay loans made under section 216C.37.  
 21.5      (9) Obligations to repay loans made from money received 
 21.6   from litigation or settlement of alleged violations of federal 
 21.7   petroleum pricing regulations. 
 21.8      (10) Obligations issued to pay pension fund liabilities 
 21.9   under section 475.52, subdivision 6, or any charter authority. 
 21.10     (11) All other obligations which under the provisions of 
 21.11  law authorizing their issuance are not to be included in 
 21.12  computing the net debt of the municipality. 
 21.13     Sec. 25.  Minnesota Statutes 1994, section 475.52, 
 21.14  subdivision 6, is amended to read: 
 21.15     Subd. 6.  [CERTAIN PURPOSES.] Any municipality may issue 
 21.16  bonds for paying judgments against it; for refunding outstanding 
 21.17  bonds; for funding floating indebtedness; or for funding all or 
 21.18  part of the municipality's current and future unfunded liability 
 21.19  for a pension or retirement fund or plan referred to in section 
 21.20  356.20, subdivision 2, as those liabilities are most recently 
 21.21  computed pursuant to sections 356.215 and 356.216 by purchasing 
 21.22  one or more insurance policies or annuity contracts to pay all 
 21.23  or a specified part of the liability within the period required 
 21.24  by law.  The board of trustees or directors of a pension fund or 
 21.25  relief association referred to in section 69.77 or chapter 422A 
 21.26  must consent and must be a party to any contract made under this 
 21.27  section with respect to the fund held by it for the benefit of 
 21.28  and in trust for its members. 
 21.29     Sec. 26.  Minnesota Statutes 1994, section 475.58, 
 21.30  subdivision 1, is amended to read: 
 21.31     Subdivision 1.  [APPROVAL BY MAJORITY OF ELECTORS; 
 21.32  EXCEPTIONS.] Obligations authorized by law or charter may be 
 21.33  issued by any municipality upon obtaining the approval of a 
 21.34  majority of the electors voting on the question of issuing the 
 21.35  obligations, but an election shall not be required to authorize 
 21.36  obligations issued: 
 22.1      (1) to pay any unpaid judgment against the municipality; 
 22.2      (2) for refunding obligations; 
 22.3      (3) for an improvement or improvement program, which 
 22.4   obligation is payable wholly or partly from the proceeds of 
 22.5   special assessments levied upon property specially benefited by 
 22.6   the improvement or by an improvement within the improvement 
 22.7   program, or of taxes levied upon the increased value of property 
 22.8   within a district for the development of which the improvement 
 22.9   is undertaken, including obligations which are the general 
 22.10  obligations of the municipality, if the municipality is entitled 
 22.11  to reimbursement in whole or in part from the proceeds of such 
 22.12  special assessments or taxes and not less than 20 percent of the 
 22.13  cost of the improvement or the improvement program is to be 
 22.14  assessed against benefited property or is to be paid from the 
 22.15  proceeds of federal grant funds or a combination thereof, or is 
 22.16  estimated to be received from such taxes within the district; 
 22.17     (4) payable wholly from the income of revenue producing 
 22.18  conveniences; 
 22.19     (5) under the provisions of a home rule charter which 
 22.20  permits the issuance of obligations of the municipality without 
 22.21  election; 
 22.22     (6) under the provisions of a law which permits the 
 22.23  issuance of obligations of a municipality without an election; 
 22.24     (7) to fund pension or retirement fund liabilities pursuant 
 22.25  to section 475.52, subdivision 6; and 
 22.26     (8) under a capital improvement plan under section 373.40; 
 22.27  and 
 22.28     (9) to fund facilities as provided in subdivision 3. 
 22.29     Sec. 27.  Minnesota Statutes 1994, section 475.58, is 
 22.30  amended by adding a subdivision to read: 
 22.31     Subd. 3.  [YOUTH ICE FACILITIES.] (a) A municipality may, 
 22.32  without regard to the election requirement under subdivision 1 
 22.33  or under any other provision of law or a home rule charter, 
 22.34  issue and sell obligations to finance acquisition, improvement, 
 22.35  or construction of an indoor ice arena intended to be used 
 22.36  predominantly for youth athletic activities if all the following 
 23.1   conditions are met: 
 23.2      (1) the obligations are secured by a pledge of revenues 
 23.3   from the facility; 
 23.4      (2) the facility and its financing are approved by 
 23.5   resolutions of at least two of the following governing bodies of 
 23.6   (i) the city in which the facility is located, (ii) the school 
 23.7   district in which the facility is located, or (iii) the county 
 23.8   in which the facility is located; 
 23.9      (3) the governing body of the municipality finds, based on 
 23.10  analysis provided by a professional experienced in finance, that 
 23.11  the facility's revenues and other available money will be 
 23.12  sufficient to pay the obligations, without reliance on a 
 23.13  property tax levy or the municipality's general purpose state 
 23.14  aid; and 
 23.15     (4) no petition for an election has been timely filed under 
 23.16  paragraph (b). 
 23.17     (b) At least 30 days before issuing obligations under this 
 23.18  subdivision, the municipality must hold a public hearing on the 
 23.19  issue.  The municipality must publish or provide notice of the 
 23.20  hearing in the same manner provided for its regular meetings.  
 23.21  The obligations are not exempt from the election requirement 
 23.22  under this subdivision, if: 
 23.23     (1) registered voters equal to ten percent of the votes 
 23.24  cast in the last general election in the municipality sign a 
 23.25  petition requesting a vote on the issue; and 
 23.26     (2) the petition is filed with the municipality within 20 
 23.27  days after the public hearing. 
 23.28     (c) This subdivision expires December 31, 1997. 
 23.29     Sec. 28.  Minnesota Statutes 1994, section 475.60, is 
 23.30  amended by adding a subdivision to read: 
 23.31     Subd. 8.  [CONTINUING DISCLOSURE AGREEMENTS.] Any officer 
 23.32  of a municipality charged with the responsibility of issuing 
 23.33  bonds for or on behalf of the municipality is authorized to 
 23.34  enter into written agreements or contracts relating to the 
 23.35  continuing disclosure of information necessary to comply with, 
 23.36  or facilitate the issuance of bonds in accordance with, federal 
 24.1   securities laws, rules and regulations, including securities and 
 24.2   exchange commission rules and regulations, section 240.15c2-12.  
 24.3   An agreement may comprise covenants with purchasers and holders 
 24.4   of bonds set forth in the resolution authorizing the issuance of 
 24.5   the bonds, or a separate document authorized by resolution. 
 24.6      Sec. 29.  Minnesota Statutes 1994, section 475.61, is 
 24.7   amended by adding a subdivision to read: 
 24.8      Subd. 6.  [OTHER TEMPORARY OBLIGATIONS.] When all 
 24.9   conditions exist precedent to the offering for sale of 
 24.10  obligations of any municipality in any amount for any purpose 
 24.11  authorized by law, the governing body may issue and sell 
 24.12  temporary obligations not exceeding the total amount authorized, 
 24.13  maturing in not more than three years from the date the 
 24.14  obligations are issued, in anticipation of the issuance of the 
 24.15  permanent obligations.  To the extent that the principal of and 
 24.16  interest on the temporary obligations cannot be paid when due 
 24.17  from other sources pledged or appropriated for the purpose, they 
 24.18  shall be paid from the proceeds of permanent bonds or additional 
 24.19  temporary bonds which the governing body shall offer for sale in 
 24.20  advance of their maturity but the indebtedness funded by an 
 24.21  issue of temporary bonds shall not be extended by the issue of 
 24.22  additional temporary bonds for more than six years from the date 
 24.23  of the first issue.  The holders of any temporary bonds shall 
 24.24  have and may enforce, by mandamus or other appropriate 
 24.25  proceedings, all rights respecting the levy and collection of 
 24.26  taxes that are granted by law to holders of permanent bonds, 
 24.27  except the right to require the levies to be collected prior to 
 24.28  the maturity of the temporary bonds.  If any temporary bonds are 
 24.29  not paid in full at maturity, the holders may require the 
 24.30  issuance in exchange for them, at par, of new temporary bonds 
 24.31  maturing within one year from their date of issue but not 
 24.32  subject to any other maturity limitation, and bearing interest 
 24.33  at the maximum rate permitted by law.  The governing body may by 
 24.34  resolution adopted prior to the sale of any temporary bonds 
 24.35  pledge the full faith, credit, and taxing power of the 
 24.36  municipality for the payment of the principal and interest, in 
 25.1   addition to all provisions made for their security in the 
 25.2   authorizing resolution.  If it does so, the bonds will be 
 25.3   designated as general obligation temporary bonds, and the 
 25.4   governing body shall levy taxes for their payment in accordance 
 25.5   with this section.  Proceeds of permanent bonds or temporary 
 25.6   bonds not yet sold may be treated as pledged revenues, in 
 25.7   reduction of the tax otherwise required by this section to be 
 25.8   levied prior to delivery of the obligations.  Funds of a 
 25.9   municipality may be invested in its temporary bonds in 
 25.10  accordance with section 471.56, and may be purchased upon their 
 25.11  initial issue, but shall be purchased only from funds which the 
 25.12  municipality determines will not be required for other purposes 
 25.13  before the maturity date, and shall be resold before maturity 
 25.14  only in the case of an emergency. 
 25.15     Sec. 30.  Minnesota Statutes 1994, section 475.63, is 
 25.16  amended to read: 
 25.17     475.63 [CERTIFICATE AS TO REGISTRATION.] 
 25.18     Before any obligations payable in whole or in part from 
 25.19  taxes shall be delivered to the purchaser, the municipality 
 25.20  shall obtain and deliver to the purchaser a certificate of the 
 25.21  county auditor that the issue has been entered on the register.  
 25.22  If a tax levy is required by law, such certificate shall also 
 25.23  recite that such tax has been levied as required by law.  
 25.24     Sec. 31.  Minnesota Statutes 1994, section 475.79, is 
 25.25  amended to read: 
 25.26     475.79 [POWERS AVAILABLE TO OTHER POLITICAL SUBDIVISIONS.] 
 25.27     Any powers granted to a municipality under this chapter, 
 25.28  other than the power to issue general obligation bonds and levy 
 25.29  taxes, may be exercised by any other governmental unit.  This 
 25.30  grant of authority does not limit the powers granted to an 
 25.31  entity under any other law.  In connection with the issuance of 
 25.32  bonds authorized to be issued by any law or charter provision 
 25.33  other than this chapter, a governmental unit determining to 
 25.34  exercise any power under any of sections 475.54, 475.55, 
 25.35  475.553, 475.56, 475.561, 475.60, 475.61, 475.65, 475.66, 
 25.36  475.67, 475.69, 475.70, and 475.78 may do so notwithstanding any 
 26.1   contrary provision in the authorizing law or charter unless the 
 26.2   authorizing law or charter provides that this chapter or the 
 26.3   specific section does not apply.  This section is, in part, 
 26.4   remedial in nature.  Obligations issued prior to the effective 
 26.5   date of this section are not invalid or unenforceable for 
 26.6   providing terms, consequences, or remedies that are authorized 
 26.7   by this section and chapter 475. 
 26.8      Sec. 32.  Laws 1994, chapter 643, section 14, subdivision 
 26.9   6, is amended to read: 
 26.10  Subd. 6.  Community Service Centers                   1,200,000
 26.11  For a grant to independent school 
 26.12  district No. 432, Mahnomen, to 
 26.13  construct a community service center at 
 26.14  Nay-Tay-Waush in Mahnomen county on the 
 26.15  White Earth Indian reservation.  The 
 26.16  center must be constructed on land 
 26.17  leased to the school district by the 
 26.18  White Earth Band of Chippewa Indians 
 26.19  under a ground lease having an initial 
 26.20  term of at least 20 years and a total 
 26.21  term of at least 40 years, including 
 26.22  renewal options.  The school district 
 26.23  must contract with the White Earth Band 
 26.24  to operate the center on behalf of the 
 26.25  school district for the term of the 
 26.26  lease and any renewal options, and 
 26.27  otherwise subject to new Minnesota 
 26.28  Statutes, section 16A.695.  The center 
 26.29  and all the services provided by the 
 26.30  center must be open to the public.  
 26.31  This grant is contingent on a match of 
 26.32  $1,300,000 from the White Earth Band of 
 26.33  Chippewa Indians. 
 26.34     Sec. 33.  [REPEALER.] 
 26.35     Minnesota Statutes 1994, section 469.305, subdivision 2, is 
 26.36  repealed. 
 26.37     Sec. 34.  [EFFECTIVE DATE.] 
 26.38     This act is effective the day following final enactment.