SF 2111

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 11:35pm

A bill for an act
relating to local government; authorizing counties to make joint purchases
of energy and energy generation projects; authorizing a tax levy; amending
Minnesota Statutes 2008, section 373.48, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2008, section 373.48, is amended by adding a
subdivision to read:

new text begin Subd. 3. new text end

new text begin Joint purchase of energy and acquisition of generation projects;
financing. new text end

new text begin (a) A county may enter into agreements under section 471.59 with other
counties for joint purchase of energy or joint acquisition of interests in projects. A
county may annually levy an ad valorem tax for the purpose of paying the cost of energy
purchased or acquiring interests in projects in an amount not exceeding 0.015 percent of
the market value of taxable property in the county. A county that enters into a multiyear
agreement for purchase of energy or acquires an interest in a project, including C-BED
projects pursuant to section 216B.1612, subdivision 9, may finance the estimated cost of
the energy to be purchased during the term of the agreement or the cost to the county
of the interest in the project by the issuance of general obligation bonds of the county,
including clean renewable energy bonds, provided that the annual debt service on all
bonds issued under this section, together with the amounts to be paid by the county in any
year for the purchase of energy under agreements entered into under this section, must
not exceed the amount of taxes authorized by this section.
new text end

new text begin (b) An agreement entered into under section 471.59 as provided by this section
may provide that:
new text end

new text begin (1) each county shall issue bonds to pay their respective shares of the cost of the
projects;
new text end

new text begin (2) one of the counties shall issue bonds to pay the full costs of the project and that
the other participating counties shall levy the tax authorized under this subdivision and
pledge the collections of the tax to the county that issues the bonds; or
new text end

new text begin (3) the joint powers board shall issue revenue bonds to pay the full costs of
the project and that the participating counties shall levy the tax authorized under this
subdivision and pledge the collections of the tax to the joint powers entity for payment of
the revenue bonds.
new text end

new text begin (c) Bonds issued under this section may be issued without an election and shall not
constitute net debt of any participating county.
new text end