SF 1979

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to local government; limiting a certain 
  1.3             exclusion from net debt to personal property 
  1.4             transactions; amending Minnesota Statutes 1994, 
  1.5             section 465.71. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 465.71, is 
  1.8   amended to read: 
  1.9      465.71 [INSTALLMENT AND LEASE PURCHASES; CITIES; COUNTIES; 
  1.10  SCHOOL DISTRICTS.] 
  1.11     A home rule charter city, statutory city, county, town, or 
  1.12  school district may purchase personal property under an 
  1.13  installment contract, or lease real or personal property with an 
  1.14  option to purchase under a lease purchase lease-purchase 
  1.15  agreement, by which contract or agreement title is retained by 
  1.16  the seller or vendor or assigned to a third party as security 
  1.17  for the purchase price, including interest, if any, but such 
  1.18  purchases are subject to statutory and charter provisions 
  1.19  applicable to the purchase of real or personal property.  For 
  1.20  purposes of the bid requirements contained in section 471.345, 
  1.21  "the amount of the contract" shall include the total of all 
  1.22  lease payments for the entire term of the lease under a 
  1.23  lease-purchase agreement.  The obligation created by a lease 
  1.24  purchase lease-purchase agreement for personal property shall 
  1.25  not be included in the calculation of net debt for purposes of 
  2.1   section 475.53, and shall not constitute debt under any other 
  2.2   statutory provision.  No election shall be required in 
  2.3   connection with the execution of a lease purchase lease-purchase 
  2.4   agreement authorized by this section.  The city, county, town, 
  2.5   or school district must have the right to terminate a lease 
  2.6   purchase lease-purchase agreement at the end of any fiscal year 
  2.7   during its term.