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SF 1754

1st Unofficial Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
  1.1                          A bill for an act 
  1.2             relating to public finance; modifying provisions 
  1.3             relating to the issuance of debt and the use and 
  1.4             investment of public funds; amending Minnesota 
  1.5             Statutes 1996, sections 136A.32, subdivision 7; 
  1.6             373.40, subdivision 7; and 412.301. 
  1.8      Section 1.  Minnesota Statutes 1996, section 136A.32, 
  1.9   subdivision 7, is amended to read: 
  1.10     Subd. 7.  The authority may invest any bond proceeds, 
  1.11  sinking funds or reserves in any securities authorized for 
  1.12  investment of funds of municipalities pursuant to section 
  1.13  sections 118A.04 and 118A.05, including securities described in 
  1.14  section 475.67, subdivision 8.  In addition, such bond proceeds, 
  1.15  sinking funds and reserves may be 
  1.16     (1) deposited in time deposits of any state or national 
  1.17  bank subject to the limitations and requirements of chapter 118 
  1.18  118A, or 
  1.19     (2) invested in repurchase agreements with, providing for 
  1.20  the repurchase of securities described in the preceding sentence 
  1.21  by, a bank qualified as a depository of money of the authority, 
  1.22  a national or state bank in the United States that is a member 
  1.23  of the federal reserve system and whose combined capital and 
  1.24  surplus equals or exceeds $10,000,000, or a reporting dealer to 
  1.25  the federal reserve bank of New York.  Power to make any such 
  1.26  investment or deposit is subject to the provisions of any 
  2.1   applicable covenant or restriction in a resolution or trust 
  2.2   agreement of the authority. 
  2.3      Sec. 2.  Minnesota Statutes 1996, section 373.40, 
  2.4   subdivision 7, is amended to read: 
  2.5      Subd. 7.  [REPEALER.] This section is repealed effective 
  2.6   for bonds issued after July 1, 1998 2002, but continues to apply 
  2.7   to bonds issued before that date. 
  2.8      Sec. 3.  Minnesota Statutes 1996, section 412.301, is 
  2.9   amended to read: 
  2.11     The council may issue certificates of indebtedness or 
  2.12  capital notes subject to the city debt limits to purchase (1) 
  2.13  public safety equipment, ambulance equipment, road construction 
  2.14  or maintenance equipment, and other capital equipment having an 
  2.15  expected useful life at least as long as the terms of the 
  2.16  certificates or notes, and (2) computer hardware and software, 
  2.17  without regard to its expected useful life, whether bundled with 
  2.18  machinery or equipment or unbundled together with application 
  2.19  development services and training related to the use of the 
  2.20  computer.  Such certificates or notes shall be payable in not 
  2.21  more than five years and shall be issued on such terms and in 
  2.22  such manner as the council may determine.  If the amount of the 
  2.23  certificates or notes to be issued to finance any such purchase 
  2.24  exceeds 0.25 percent of the market value of taxable property in 
  2.25  the city, they shall not be issued for at least ten days after 
  2.26  publication in the official newspaper of a council resolution 
  2.27  determining to issue them; and if before the end of that time, a 
  2.28  petition asking for an election on the proposition signed by 
  2.29  voters equal to ten percent of the number of voters at the last 
  2.30  regular municipal election is filed with the clerk, such 
  2.31  certificates or notes shall not be issued until the proposition 
  2.32  of their issuance has been approved by a majority of the votes 
  2.33  cast on the question at a regular or special election.  A tax 
  2.34  levy shall be made for the payment of the principal and interest 
  2.35  on such certificates or notes, in accordance with section 
  2.36  475.61, as in the case of bonds.