1.1 A bill for an act
1.2 relating to public finance; updating and making
1.3 technical changes to public finance and related
1.4 provisions related to county and county-supported
1.5 hospitals, municipally owned nursing homes, lake
1.6 improvement districts, and the metropolitan council;
1.7 extending a sunset date for certain county capital
1.8 improvement bonds and limiting the inclusiveness of
1.9 capital improvements; removing election requirements
1.10 as preconditions for issuance of certain obligations;
1.11 requiring reverse referenda in certain cases;
1.12 clarifying the effect of a state guaranty as not
1.13 creating constitutional public debt of the state;
1.14 authorizing some flexibility in stating certain ballot
1.15 questions; authorizing Scott and Carver counties to
1.16 grant certain economic development powers to their
1.17 housing and redevelopment authorities; authorizing the
1.18 Chisago Lakes joint sewage treatment commission to
1.19 issue bonds; authorizing expanded funding by the
1.20 county for certain multijurisdictional program
1.21 activities in Hennepin county; authorizing Hassan
1.22 township to create and empower an economic development
1.23 authority; updating and changing the Minnesota Bond
1.24 Allocation Act; amending Minnesota Statutes 2000,
1.25 sections 103B.555, by adding a subdivision; 165.10,
1.26 subdivision 2; 275.60; 373.45, subdivision 3; 376.06,
1.27 subdivision 1; 376.07; 376.08, subdivisions 1, 2;
1.28 376.09; 383B.79, by adding a subdivision; 429.091,
1.29 subdivision 7a; 473.39, by adding a subdivision;
1.30 474A.02, subdivisions 8, 13a, 22a, 22b, 23a; 474A.03,
1.31 subdivisions 1, 2a, 4; 474A.04, subdivisions 1a, 5;
1.32 474A.045; 474A.047, subdivisions 1, 2; 474A.061,
1.33 subdivisions 1, 2a, 2b, 2c, 4; 474A.091, subdivisions
1.34 2, 3, 4, 5, 6, by adding a subdivision; 474A.131,
1.35 subdivisions 1, 2, by adding a subdivision; 474A.14;
1.36 475.54, subdivision 1; 475.58, subdivision 1; 475.59;
1.37 amending Laws 1974, chapter 473; Laws 1980, chapter
1.38 482; proposing coding for new law in Minnesota
1.39 Statutes, chapters 474A; repealing Minnesota Statutes
1.40 2000, sections 373.40, subdivision 7; 376.03;
1.41 474A.061, subdivision 6.
1.42 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.43 Section 1. Minnesota Statutes 2000, section 103B.555, is
2.1 amended by adding a subdivision to read:
2.2 Subd. 4. [DISTRICT OBLIGATIONS.] The district, with
2.3 approval of the county board or joint county authority,
2.4 expressed in a resolution identifying each specific improvement
2.5 to which the approval applies, may exercise the powers of a city
2.6 under chapter 429 and section 444.075, including, but not
2.7 limited to:
2.8 (1) the levy of special assessments;
2.9 (2) the imposition of rates and charges; and
2.10 (3) the issuance of bonds
2.11 to finance improvements that the district may undertake.
2.12 [EFFECTIVE DATE.] This section is effective the day
2.13 following final enactment.
2.14 Sec. 2. Minnesota Statutes 2000, section 165.10,
2.15 subdivision 2, is amended to read:
2.16 Subd. 2. [BONDS ISSUED, SOLD, AND RETIRED.] Such bonds
2.17 shall be general obligations of the county and issued, sold, and
2.18 retired in the manner provided in chapter 475.
2.19 [EFFECTIVE DATE.] This section is effective the day
2.20 following final enactment.
2.21 Sec. 3. Minnesota Statutes 2000, section 275.60, is
2.22 amended to read:
2.23 275.60 [LEVY OR BOND REFERENDUM; BALLOT NOTICE.]
2.24 (a) Notwithstanding any general or special law or any
2.25 charter provisions, but subject to section 126C.17, subdivision
2.26 9, any question submitted to the voters by any local
2.27 governmental subdivision at a general or special election after
2.28 June 8, 1995, authorizing a property tax levy or tax rate
2.29 increase, including the issuance of debt obligations payable in
2.30 whole or in part from property taxes, must include on the ballot
2.31 the following notice in boldface type.:
2.32 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
2.33 FOR A PROPERTY TAX INCREASE."
2.34 (b) For purposes of this section and section 275.61, "local
2.35 governmental subdivision" includes counties, home rule and
2.36 statutory cities, towns, school districts, and all special
3.1 taxing districts. This statement is in addition to any general
3.2 or special laws or any charter provisions that govern the
3.3 contents of a ballot question and, in the case of a question on
3.4 the issuance of debt obligations, may be supplemented by a
3.5 description of revenues pledged to payment of the obligations
3.6 that are intended as the primary source of payment.
3.7 (c) This section does not apply to a school district bond
3.8 election if the debt service payments are to be made entirely
3.9 from transfers of revenue from the capital fund to the debt
3.10 service fund.
3.11 [EFFECTIVE DATE.] This section is effective the day
3.12 following final enactment.
3.13 Sec. 4. Minnesota Statutes 2000, section 373.45,
3.14 subdivision 3, is amended to read:
3.15 Subd. 3. [AGREEMENT.] (a) In order For specified debt
3.16 obligations of a county to be covered by the provisions of this
3.17 section, the county must enter an agreement with the authority
3.18 obligating the county to be bound by the provisions of this
3.19 section.
3.20 (b) This agreement must be in a form prescribed by the
3.21 authority and contain any provisions required by the authority,
3.22 including, at least, an obligation to:
3.23 (1) deposit with the paying agent three days before the
3.24 date on which the payment is due an amount sufficient to make
3.25 that payment;
3.26 (2) notify the authority, if the county will be unable to
3.27 make all or a portion of the payment; and
3.28 (3) include a provision in the bond resolution and county's
3.29 agreement with the paying agent for the debt obligation that
3.30 requires the paying agent to inform the commissioner if it
3.31 becomes aware of a default or potential default in the payment
3.32 of principal or interest on that issue or if, on the day two
3.33 business days before the date a payment is due on that issue,
3.34 there are insufficient funds to make the payment on deposit with
3.35 the paying agent.
3.36 (c) Funds invested in a refunding escrow account
4.1 established under section 475.67 that are to become available to
4.2 the paying agent on a principal or interest payment date are
4.3 deemed to be on deposit with the paying agent three business
4.4 days before the payment date.
4.5 (b) (d) The provisions of an agreement under this
4.6 subdivision are binding as to an issue as long as any debt
4.7 obligation of the issue remains outstanding.
4.8 (c) (e) This section is a contract with bondholders and may
4.9 not be amended or repealed for the covered bonds so long as the
4.10 covered bonds are outstanding and the obligations of the state
4.11 under this section are not a public debt of the state under
4.12 article XI, section 4, of the Minnesota Constitution, and the
4.13 legislature may, at any time, choose not to appropriate amounts
4.14 under subdivision 4, paragraph (b).
4.15 [EFFECTIVE DATE.] This section is effective the day
4.16 following final enactment.
4.17 Sec. 5. Minnesota Statutes 2000, section 376.06,
4.18 subdivision 1, is amended to read:
4.19 Subdivision 1. [PROCEDURE, POWERS, PAY, ELECTION.] A
4.20 county board which has purchased and constructed buildings for
4.21 hospital purposes may operate these buildings as a hospital and
4.22 may appoint a superintendent. The board shall set the
4.23 superintendent's salary, term of employment, and powers and
4.24 duties; provide for the management and operation of the
4.25 hospital; and operate, control, and manage the hospital. The
4.26 superintendent shall serve at the pleasure of the board. If the
4.27 board determines that it is in the public interest, it may
4.28 appoint a hospital board of at least three, but not more than
4.29 nine members, who must be county residents and landowners, to
4.30 serve may include some or all of the county commissioners except
4.31 as otherwise provided in subdivision 2. Persons appointed to
4.32 the hospital board must reside in the hospital's service area
4.33 and 80 percent of the board members, including any commissioners
4.34 appointed to serve on the hospital board, must be residents of
4.35 the county. The hospital board serves without compensation
4.36 unless the county board authorizes the payment of compensation
5.1 and reimbursement of expenses for service on the hospital
5.2 board. Notwithstanding section 375.44, if compensation and
5.3 reimbursement are authorized, they shall be the same as
5.4 authorized for service on the local social services agency.
5.5 Subject to its supervision, the county board may commit the
5.6 care, management, and operation of the hospital to the hospital
5.7 board. The county board may provide for the organization and
5.8 regulation of the hospital board, its duties and the duties of
5.9 the members, and regulations for the management, operation, and
5.10 control of the hospital. The county board may lease the
5.11 hospital grounds and buildings to a hospital association
5.12 nonprofit or governmental hospital organization for terms it
5.13 considers advisable. Sections 376.01 to 376.06 do not permit
5.14 any county board to purchase and construct any hospital
5.15 buildings or to pay for them without first submitting the
5.16 question to the vote of the people. No purchase or construction
5.17 of buildings or payment may be made unless a majority of the
5.18 electors voting upon the proposition vote in favor.
5.19 [EFFECTIVE DATE.] This section is effective the day
5.20 following final enactment.
5.21 Sec. 6. Minnesota Statutes 2000, section 376.07, is
5.22 amended to read:
5.23 376.07 [ADDITION TO COUNTY HOSPITAL.]
5.24 When the county board of a county has been authorized by
5.25 the voters to construct an addition to the county hospital of
5.26 the county under sections 376.01 to 376.06, whether or not also
5.27 authorized to equip the addition, and the board has determined
5.28 that the addition, whether with or without equipment, cannot be
5.29 completed within the cost authorized, or has determined that, to
5.30 complete the improvement, certain alterations should be made, or
5.31 fixtures or equipment added, either in the original building, or
5.32 in the addition, or both, the board may be authorized to spend a
5.33 specified additional amount for any of the purposes mentioned in
5.34 this chapter, either by vote of the people of the county at a
5.35 general or special election or by petition. If an election is
5.36 held, the proposition shall be submitted and disposed of in the
6.1 same manner as provided by sections 376.01 to 376.06. If by
6.2 petition, the petition must be signed by a majority of those
6.3 voting at the last preceding general election. The petition may
6.4 be in the form of one document or of several documents in the
6.5 same form, and shall be filed with the county auditor. A
6.6 special election may be called in the manner provided for
6.7 calling special county elections. When authority is granted by
6.8 the voters, in either manner provided, the board may proceed
6.9 accordingly. If the board made or attempted to make a contract
6.10 or contracts for more than the authority first granted, it may
6.11 ratify and carry out the contracts. The county board, hospital
6.12 board, or board of directors of a nonprofit or governmental
6.13 hospital organization that has leased a county hospital may
6.14 authorize the remodeling, improvement, alteration, or
6.15 construction of an addition to the county hospital or of another
6.16 building on the county hospital's existing premises by a
6.17 majority vote of the board. Financing for any project under
6.18 this section is governed by other law, including sections 373.40
6.19 and 447.45 and chapter 475.
6.20 [EFFECTIVE DATE.] This section is effective the day
6.21 following final enactment.
6.22 Sec. 7. Minnesota Statutes 2000, section 376.08,
6.23 subdivision 1, is amended to read:
6.24 Subdivision 1. [APPROPRIATIONS.] Except as provided in
6.25 subdivision 2, the board of county commissioners in any county
6.26 with a population of 50,000 or less may appropriate up to
6.27 $65,000 annually from the general revenue fund of the county for
6.28 the acquisition of lands for hospital purposes, and the
6.29 construction, improvement, alterations, equipment and
6.30 maintenance of hospitals within the county, including public or
6.31 nonprofit hospitals that are not county hospitals. The board
6.32 may also appropriate up to $25,000 from the general revenue fund
6.33 of the county for the acquisition of land and construction of
6.34 municipally owned nursing homes within the county.
6.35 [EFFECTIVE DATE.] This section is effective the day
6.36 following final enactment.
7.1 Sec. 8. Minnesota Statutes 2000, section 376.08,
7.2 subdivision 2, is amended to read:
7.3 Subd. 2. [REMODELING OR ADDITIONS.] A county hospital may
7.4 by majority vote of its board of commissioners, or if the
7.5 hospital has been leased to another entity under section 376.06,
7.6 subdivision 1, or 447.47, by majority vote of the board of
7.7 directors of that entity, enter into projects for the
7.8 construction of an addition or remodeling to its presently
7.9 existing facility or the acquisition of equipment as described
7.10 in this subdivision without complying with the dollar limitation
7.11 of subdivision 1 or the election requirements of section
7.12 376.03. This subdivision applies only to projects in which the
7.13 funds for the project are derived from dedicated, restricted, or
7.14 other designated accounts or, from the hospital's depreciation
7.15 fund and do not require incurring debt by the county through, or
7.16 from the issuance of bonds or otherwise authorized under other
7.17 law. An addition to a current hospital under this subdivision
7.18 may include construction of buildings physically separate from
7.19 the present hospital building, as well as additions to the
7.20 present building, if the new buildings are constructed on the
7.21 hospital's existing premises.
7.22 This subdivision does not affect the ability of the
7.23 hospital board to approve funds for improvements or remodeling
7.24 of a hospital facility under other law.
7.25 [EFFECTIVE DATE.] This section is effective the day
7.26 following final enactment.
7.27 Sec. 9. Minnesota Statutes 2000, section 376.09, is
7.28 amended to read:
7.29 376.09 [AID TO HOSPITALS IN COUNTIES HAVING NO COUNTY
7.30 HOSPITAL.]
7.31 In any county in which there is no county hospital, or a
7.32 county hospital is leased to a nonprofit or governmental
7.33 hospital organization pursuant to section 376.06, subdivision 1,
7.34 or 447.47, the county board may appropriate and pay money from
7.35 the general fund of the county, for the construction,
7.36 maintenance, and operation of a private, nonprofit, or public
8.1 hospital in the county for the treatment of sick, diseased, and
8.2 injured persons. Admission preference shall always be given to
8.3 patients who are, in whole or in part, public charges, and are
8.4 sent to the hospital by the county board.
8.5 [EFFECTIVE DATE.] This section is effective the day
8.6 following final enactment.
8.7 Sec. 10. Minnesota Statutes 2000, section 383B.79, is
8.8 amended by adding a subdivision to read:
8.9 Subd. 5. [FINANCING.] Hennepin county may appropriate
8.10 funds for any of the activities described in subdivision 1,
8.11 whether or not state funds are appropriated for the activity.
8.12 Hennepin county may include any part of the costs of a project
8.13 described in section 469.002, subdivision 12, in a capital
8.14 improvement plan adopted under section 373.40, and may issue
8.15 bonds for such purposes pursuant to and subject to the
8.16 procedures and limitations set forth in section 373.40, whether
8.17 or not the capital improvement to be financed is to be owned by
8.18 the county or any other governmental entity. Such purposes are
8.19 in addition to the capital improvements described in section
8.20 373.40, but shall not include light rail transit, commuter rail,
8.21 or any activity related to either of those, or a sports facility
8.22 building designed or used primarily for professional sports. No
8.23 funds appropriated under this subdivision may be used to pay
8.24 operating expenses.
8.25 Sec. 11. Minnesota Statutes 2000, section 429.091,
8.26 subdivision 7a, is amended to read:
8.27 Subd. 7a. [REVOLVING FUND BONDS.] The council may by
8.28 resolution establish a revolving fund for the payment of the
8.29 costs of any improvement or any waterworks systems, sewer
8.30 systems, or storm sewer systems described in section 444.075,
8.31 the costs of facilities to maintain streets and water, sewer,
8.32 and storm sewer systems and for the payment of any obligations
8.33 issued to pay the costs thereof of the facilities and systems
8.34 referred to in this subdivision or to refund obligations issued
8.35 for those purposes. The council may create within the revolving
8.36 fund a separate construction account into which the municipality
9.1 may deposit the proceeds of any obligations payable from the
9.2 fund, the proceeds of any special assessments collected with
9.3 respect to any improvement, any net revenues of a waterworks,
9.4 sewer system, or storm sewer system described in section 444.075
9.5 or any other available funds of the municipality appropriated to
9.6 it. Amounts on deposit in the construction account may be used
9.7 to pay the costs of any improvement or any waterworks, sewer
9.8 system, or storm sewer system described in section 444.075 or
9.9 any street or water, sewer, or storm sewer maintenance
9.10 facilities. No funds may be expended for an improvement unless
9.11 at least 20 percent of the costs of each such improvement is to
9.12 be assessed against benefited property. No funds may be
9.13 expended for a waterworks, sewer system, or storm sewer system,
9.14 other than a sewer system described in section 115.46, or
9.15 maintenance facilities unless the council estimates that the
9.16 costs will be recovered from the net revenues of the system or
9.17 any combined waterworks, sewer systems, or storm sewer systems
9.18 operated by the municipality. The council may also create a
9.19 separate debt service account within the revolving fund for the
9.20 payment of principal of and interest on any obligations payable
9.21 therefrom. Notwithstanding subdivision 4, the council is not
9.22 required to pledge any particular assessments or other revenues
9.23 to the payment of the obligations. Collections of special
9.24 assessments or net revenues may be deposited in either the
9.25 construction account or the debt service account as the council
9.26 or an officer designated by the council may determine, having
9.27 due regard for anticipated collections of special assessments
9.28 and net revenues from improvements or waterworks, sewer systems,
9.29 or storm sewer systems financed in whole or in part from the
9.30 construction account, and taxes levied for the payment of the
9.31 obligations. The council may issue obligations that are payable
9.32 primarily from the debt service account for the purpose of
9.33 providing funds to defray in whole or in part any expenses
9.34 incurred or estimated to be incurred in making the improvement
9.35 or improvements or in constructing the waterworks, sewer system,
9.36 or storm sewer system, including every item of cost of the kinds
10.1 authorized by section 475.65, and street and water, sewer, and
10.2 storm sewer maintenance facilities or to refund obligations
10.3 previously issued under this section or section 115.46 or
10.4 444.075. The obligations may be general obligations to which
10.5 the full faith and credit of the municipality are pledged. If
10.6 the special assessments to be levied and net revenues estimated
10.7 to be available for their payment are estimated to be at least
10.8 20 percent of the principal amount of the obligations, the
10.9 obligations may be issued without an election and shall not be
10.10 included in determining the net indebtedness of the municipality
10.11 under the provisions of any law limiting net indebtedness. The
10.12 cost of a maintenance facility that may be financed under this
10.13 subdivision is limited only to the portion of the facility that
10.14 is fairly allocable to the maintenance of streets and water,
10.15 sewer, and storm sewer systems.
10.16 [EFFECTIVE DATE.] This section is effective the day
10.17 following final enactment.
10.18 Sec. 12. Minnesota Statutes 2000, section 473.39, is
10.19 amended by adding a subdivision to read:
10.20 Subd. 1h. [OBLIGATIONS.] After July 1, 2001, in addition
10.21 to the authority in subdivisions 1a, 1b, 1c, 1d, 1e, and 1g, the
10.22 council may issue certificates of indebtedness, bonds, or other
10.23 obligations under this section in an amount not exceeding
10.24 $45,000,000 for capital expenditures as prescribed in the
10.25 council's regional transit master plan and transit capital
10.26 improvement program and for related costs, including the costs
10.27 of issuance and sale of the obligations, but not for computer
10.28 software, or for construction, maintenance, or operation of
10.29 light rail transit or commuter rail.
10.30 [EFFECTIVE DATE; APPLICATION.] This section is effective
10.31 the day following final enactment and applies in the counties of
10.32 Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
10.33 Sec. 13. Minnesota Statutes 2000, section 474A.02,
10.34 subdivision 8, is amended to read:
10.35 Subd. 8. [FEDERAL TAX LAW.] "Federal tax law" means those
10.36 provisions of the Internal Revenue Code of 1986, as
11.1 amended through December 31, 1990, that limit the aggregate
11.2 amount of obligations of a specified type or types which may be
11.3 issued by an issuer during a calendar year whose interest is
11.4 excluded from gross income for purposes of federal income
11.5 taxation.
11.6 Sec. 14. Minnesota Statutes 2000, section 474A.02,
11.7 subdivision 13a, is amended to read:
11.8 Subd. 13a. [SMALL ISSUE POOL.] "Small issue pool" means
11.9 the amount of the annual volume cap allocated under section
11.10 474A.061, that is available for the issuance of enterprise zone
11.11 facility bonds authorized under Public Law Number 103-66,
11.12 section 13301, small issue bonds to finance manufacturing
11.13 projects, and the agricultural development bond beginning farmer
11.14 and agricultural business enterprise loan program authorized in
11.15 sections 41C.01 to 41C.13, and student loan bonds issued by the
11.16 Minnesota higher education services office.
11.17 Sec. 15. Minnesota Statutes 2000, section 474A.02,
11.18 subdivision 22a, is amended to read:
11.19 Subd. 22a. [PUBLIC FACILITIES POOL.] "Public facilities
11.20 pool" means the amount of the annual volume cap allocated under
11.21 section 474A.061, which is available for the issuance of public
11.22 facility bonds or student loan bonds.
11.23 Sec. 16. Minnesota Statutes 2000, section 474A.02,
11.24 subdivision 22b, is amended to read:
11.25 Subd. 22b. [PUBLIC FACILITIES PROJECT.] "Public facilities
11.26 project" means any publicly owned facility, or facility owned by
11.27 a nonprofit organization that is used for district heating or
11.28 cooling, that is eligible to be financed with the proceeds of
11.29 public facilities bonds as defined under section 474A.02,
11.30 subdivision 23a.
11.31 Sec. 17. Minnesota Statutes 2000, section 474A.02,
11.32 subdivision 23a, is amended to read:
11.33 Subd. 23a. [QUALIFIED BONDS.] "Qualified bonds" means the
11.34 specific type or types of obligations that are subject to the
11.35 annual volume cap. Qualified bonds include the following types
11.36 of obligations as defined in federal tax law:
12.1 (a) "public facility bonds" means "exempt facility bonds"
12.2 as defined in federal tax law, except for residential rental
12.3 project bonds, which are those obligations issued to finance
12.4 airports, docks and wharves, mass commuting facilities,
12.5 facilities for the furnishing of water, sewage facilities, solid
12.6 waste disposal facilities, facilities for the local furnishing
12.7 of electric energy or gas, local district heating or cooling
12.8 facilities, and qualified hazardous waste facilities. New bonds
12.9 and other obligations are ineligible to receive state
12.10 allocations or entitlement authority for public facility
12.11 projects under this section if they have been issued:
12.12 (1) for the purpose of refinancing, refunding, or otherwise
12.13 defeasing existing debt; and
12.14 (2) more than one calendar year prior to the date of
12.15 application;
12.16 (b) "residential rental project bonds" which are those
12.17 obligations issued to finance qualified residential rental
12.18 projects;
12.19 (c) "mortgage bonds";
12.20 (d) "small issue bonds" issued to finance manufacturing
12.21 projects and the acquisition or improvement of agricultural real
12.22 or personal property under sections 41C.01 to 41C.13;
12.23 (e) "student loan bonds" issued by or on behalf of the
12.24 Minnesota higher education services office;
12.25 (f) "redevelopment bonds";
12.26 (g) "governmental bonds" with a nonqualified amount in
12.27 excess of $15,000,000 as set forth in section 141(b)5 of federal
12.28 tax law; and
12.29 (h) "enterprise zone facility bonds" issued to finance
12.30 facilities located within empowerment zones or enterprise
12.31 communities, as authorized under Public Law Number 103-66,
12.32 section 13301.
12.33 Sec. 18. Minnesota Statutes 2000, section 474A.03,
12.34 subdivision 1, is amended to read:
12.35 Subdivision 1. [UNDER FEDERAL TAX LAW; ALLOCATIONS.] At
12.36 the beginning of each calendar year after December 31, 1997
13.1 2001, the commissioner shall determine the aggregate dollar
13.2 amount of the annual volume cap under federal tax law for the
13.3 calendar year, and of this amount the commissioner shall make
13.4 the following allocation:
13.5 (1) $63,000,000 $74,530,000 to the small issue pool;
13.6 (2) $59,000,000 $122,060,000 to the housing pool,
13.7 $37,000,000 of which 31 percent of the adjusted allocation is
13.8 reserved until the day after the first last Monday in February
13.9 July for single-family housing programs;
13.10 (3) $10,500,000 $12,750,000 to the public facilities pool;
13.11 and
13.12 (4) amounts to be allocated as provided in subdivision 2a.
13.13 If the annual volume cap is greater or less than the amount
13.14 of bonding authority allocated under clauses (1) to (4) and
13.15 subdivision 2a, paragraph (a), clauses (1) to (4), the
13.16 allocation must be adjusted so that each adjusted allocation is
13.17 the same percentage of the annual volume cap as each original
13.18 allocation is of the total bonding authority originally
13.19 allocated.
13.20 Sec. 19. Minnesota Statutes 2000, section 474A.03,
13.21 subdivision 2a, is amended to read:
13.22 Subd. 2a. [ENTITLEMENT ISSUER ALLOCATION.] (a) The
13.23 commissioner shall make the following allocation to the
13.24 Minnesota housing finance agency and the following cities and
13.25 county:
13.26 (1) $53,750,000 $84,940,000 per year to the Minnesota
13.27 housing finance agency, less any amount received in the previous
13.28 year under section 474A.091, subdivision 6;
13.29 (2) $21,000,000 $33,190,000 per year to the city of
13.30 Minneapolis;
13.31 (3) $15,750,000 $24,890,000 per year to the city of Saint
13.32 Paul; and
13.33 (4) $10,500,000 $16,600,000 per year to the Dakota county
13.34 community development agency for the county of Dakota and all
13.35 political subdivisions located within the county.
13.36 (b) Entitlement allocations provided under this subdivision
14.1 must be used for mortgage bonds, mortgage credit certificates,
14.2 public facility bonds, or residential rental project bonds,
14.3 except that entitlement issuers may also use their allocations
14.4 for public facility bonds, and may carry forward their
14.5 allocations for any qualified bond as defined under section
14.6 474A.02, subdivision 23a.
14.7 (c) Data on the home purchase price amount, mortgage
14.8 amount, income, household size, and race of the households
14.9 served with the proceeds of mortgage revenue bonds and mortgage
14.10 credit certificates in the previous year must be submitted by
14.11 each entitlement issuer to the Minnesota housing finance agency
14.12 by December 31 of each year. Compliance by the Minnesota
14.13 housing finance agency with the provisions of section 462A.073,
14.14 subdivision 5, shall be deemed compliance with the reporting
14.15 requirements of this subdivision.
14.16 Sec. 20. Minnesota Statutes 2000, section 474A.03,
14.17 subdivision 4, is amended to read:
14.18 Subd. 4. [APPLICATION FEE.] Every entitlement issuer and
14.19 other issuer shall pay to the commissioner a nonrefundable
14.20 application fee to offset the state cost of program
14.21 administration. The application fee is $20 for each $100,000 of
14.22 entitlement or allocation requested, with the request rounded to
14.23 the nearest $100,000. The minimum fee is $20. Fees received by
14.24 the commissioner must be credited to the general fund.
14.25 Application fees for projects of entitlement issuers must be
14.26 submitted to the commissioner with the notice of issuance of
14.27 bonds, notice of use of mortgage credit certificates, and notice
14.28 of carry forward. Each entitlement issuer must pay its
14.29 application fee in full for that calendar year to the
14.30 commissioner no later than when the first notice of issuance of
14.31 bonds, notice of use of mortgage credit certificates, or notice
14.32 of carry forward is submitted to the commissioner by that issuer.
14.33 Sec. 21. Minnesota Statutes 2000, section 474A.04,
14.34 subdivision 1a, is amended to read:
14.35 Subd. 1a. [ENTITLEMENT RESERVATIONS; CARRYFORWARD;
14.36 DEDUCTION.] Any amount returned by an entitlement issuer before
15.1 July 15 shall be reallocated through the housing pool. Any
15.2 amount returned on or after July 15 shall be reallocated through
15.3 the unified pool. An amount returned after the last Monday in
15.4 November shall be reallocated to the Minnesota housing finance
15.5 agency. Any amount of bonding authority that an entitlement
15.6 issuer carries forward under federal tax law that is not
15.7 permanently issued or for which the governing body of the
15.8 entitlement issuer has not enacted a resolution electing to use
15.9 the authority for mortgage credit certificates by July 15 and
15.10 has not provided a notice of issue to the commissioner before
15.11 4:30 p.m. on the last business day in December of the succeeding
15.12 calendar year shall be deducted from the entitlement allocation
15.13 for that entitlement issuer for the current calendar year. Any
15.14 amount deducted from an entitlement issuer's allocation under
15.15 this subdivision shall be reallocated through the unified pool.
15.16 An entitlement issuer must permanently issue all carryforward
15.17 authority or enact a resolution electing to use all carryforward
15.18 authority for mortgage credit certificates prior to issuing any
15.19 current year authority of that entitlement issuer in the next
15.20 succeeding calendar year. Any amount deducted from an
15.21 entitlement issuer's allocation under this subdivision shall be
15.22 reallocated to other entitlement issuers, the housing pool, the
15.23 small issue pool, and the public facilities pool on a
15.24 proportional basis consistent with section 474A.03.
15.25 Sec. 22. Minnesota Statutes 2000, section 474A.04,
15.26 subdivision 5, is amended to read:
15.27 Subd. 5. [NOTICE OF ENTITLEMENT ALLOCATION.] As soon as
15.28 possible in each calendar year, the commissioner shall provide
15.29 to each entitlement issuer a written notice of the amount of its
15.30 post on the department's Web site the amount of each entitlement
15.31 allocation.
15.32 Sec. 23. Minnesota Statutes 2000, section 474A.045, is
15.33 amended to read:
15.34 474A.045 [SCORING SYSTEM FOR ENTERPRISE ZONE FACILITY
15.35 PROJECTS AND MANUFACTURING PROJECTS.]
15.36 The following criteria must be used in determining the
16.1 allocation of enterprise zone facility bonds and small issue
16.2 bonds for manufacturing projects. The issuer must prepare and
16.3 submit to the commissioner a public purpose scoring worksheet
16.4 that presents the data and methods used in determining the total
16.5 score under this section. The total score is the sum of the
16.6 following:
16.7 (1) the number of direct new jobs in the state generated by
16.8 the proposed project for the next two years per $100,000 of
16.9 proposed allocation multiplied by 15;
16.10 (2) the number of direct existing jobs in the state
16.11 multiplied by .625 due to the proposed project for the next two
16.12 years per $100,000 of proposed allocation multiplied by 15;
16.13 (3) the average hourly wage paid to employees by the
16.14 proposed project for the next two years, exclusive of benefits
16.15 mandated by law, based on the following scale:
16.16 Wages paid per hour $ 8 $10 $12 $15
16.17 Non-Metro area points awarded 10 15 20 20
16.18 Seven-County Metro Area
16.19 points awarded 0 10 15 20
16.20 For purposes of this section, the seven-county metropolitan
16.21 area includes Anoka, Carver, Dakota, Hennepin, Ramsey, Scott,
16.22 and Washington counties;
16.23 (4) the quotient of the estimated total net increase in
16.24 property taxes generated in the state by the project in the
16.25 first full year of operation divided by the proposed bond
16.26 allocation, multiplied by 500; and
16.27 (5) the seasonally unadjusted unemployment rate in the
16.28 community where the proposed project is located measured as a
16.29 percent of the state's unemployment rate, multiplied by ten.
16.30 The community seasonally unadjusted unemployment rate used
16.31 in determining the points under clause (5) must be the most
16.32 recent rate for the city or county in which the proposed project
16.33 is located, as provided by the commissioner of economic security.
16.34 (6) 20 points for projects that locate in an incorporated
16.35 area or a planned urban growth area as defined by section
16.36 462.352, subdivision 18;
17.1 (7) 20 points for brownfield projects located in a state or
17.2 federal Superfund site, a voluntary investigation and cleanup
17.3 site, or a brownfield site, all as defined by the Minnesota
17.4 pollution control agency; and
17.5 (8) 20 points for projects with favorable environmental
17.6 citizenship as evidenced by no nonforgivable or combination
17.7 administrative penalty orders, stipulation agreements, consent
17.8 decrees, or other enforcement orders containing a monetary
17.9 penalty by the Minnesota pollution control agency over the past
17.10 three years or pending at the time of application.
17.11 Sec. 24. Minnesota Statutes 2000, section 474A.047,
17.12 subdivision 1, is amended to read:
17.13 Subdivision 1. [ELIGIBILITY.] (a) An issuer may only use
17.14 the proceeds from residential rental bonds if the proposed
17.15 project meets one of the following requirements:
17.16 (1) the proposed project is a single room occupancy project
17.17 and all the units of the project will be occupied by individuals
17.18 whose incomes at the time of their initial residency in the
17.19 project are 50 percent or less of the greater of the statewide
17.20 or county median income adjusted for household size as
17.21 determined by the federal Department of Housing and Urban
17.22 Development;
17.23 (2) the proposed project is a multifamily project where at
17.24 least 75 percent of the units have two or more bedrooms and at
17.25 least one-third of the 75 percent have three or more bedrooms;
17.26 or
17.27 (3) the proposed project is a multifamily project that
17.28 meets the following requirements:
17.29 (i) the proposed project is the rehabilitation of an
17.30 existing building which meets the requirements for minimum
17.31 rehabilitation expenditures in sections 42(e)(2) and 42(e)(3)(A)
17.32 of the Internal Revenue Code;
17.33 (ii) the proposed project involves participation by the
17.34 Minnesota housing finance agency or a local unit of government
17.35 in the financing of the acquisition or rehabilitation of the
17.36 project. For purposes of this subdivision, "participation"
18.1 means an activity other than the issuance of the bonds; and
18.2 (iii) the proposed project must be occupied by individuals
18.3 or families whose incomes at the time of their initial residency
18.4 in the project meet the requirements of section 42(g) of the
18.5 Internal Revenue Code.
18.6 (1) the proposed residential rental project meets the
18.7 requirements of section 142(d) of the Internal Revenue Code
18.8 regarding the incomes of the occupants of the housing; and
18.9 (2) the maximum rent for at least 20 percent of the units
18.10 in the proposed residential rental project do not exceed the
18.11 area fair market rent or exception fair market rents for
18.12 existing housing, if applicable, as established by the federal
18.13 Department of Housing and Urban Development.
18.14 (b) The maximum rent for a proposed single room occupancy
18.15 unit under paragraph (a), clause (1), is 30 percent of the
18.16 amount equal to 30 percent of the greater of the statewide or
18.17 county median income for a one-member household as determined by
18.18 the federal Department of Housing and Urban Development. The
18.19 maximum rent for at least 75 percent of the units of a
18.20 multifamily project under paragraph (a), clause (2), is 30
18.21 percent of the amount equal to 50 percent of the greater of the
18.22 statewide or county median income as determined by the federal
18.23 Department of Housing and Urban Development based on a household
18.24 size with 1.5 persons per bedroom.
18.25 (c) The proceeds from residential rental bonds may be used
18.26 for a project for which project-based federal rental assistance
18.27 payments are made only if:
18.28 (1) the owner of the project enters into a binding
18.29 agreement with the Minnesota housing finance agency under which
18.30 the owner is obligated to extend any existing low-income
18.31 affordability restrictions and any contract or agreement for
18.32 rental assistance payments for the maximum term permitted,
18.33 including any renewals thereof; and
18.34 (2) the Minnesota housing finance agency certifies that
18.35 project reserves will be maintained at closing of the bond issue
18.36 and budgeted in future years at the lesser of:
19.1 (i) the level described in Minnesota Rules, part 4900.0010,
19.2 subpart 7, item A, subitem (2), effective May 1, 1997; or
19.3 (ii) the level of project reserves available prior to the
19.4 bond issue, provided that additional money is available to
19.5 accomplish repairs and replacements needed at the time of bond
19.6 issue.
19.7 Sec. 25. Minnesota Statutes 2000, section 474A.047,
19.8 subdivision 2, is amended to read:
19.9 Subd. 2. [15-YEAR AGREEMENT.] Prior to the issuance of
19.10 residential rental bonds, the developer of the project for which
19.11 the bond proceeds will be used must enter into a 15-year
19.12 agreement with the issuer that specifies the maximum rental
19.13 rates of the rent-restricted units in the project and the income
19.14 levels of the residents of the project occupying
19.15 income-restricted units. The Such rental rates and income
19.16 levels must be within the limitations established under
19.17 subdivision 1. The developer must annually certify to the
19.18 issuer over the term of the agreement that the rental rates for
19.19 the rent-restricted units are within the limitations under
19.20 subdivision 1. The issuer may request individual certification
19.21 of the income of all residents of the project income-restricted
19.22 units. The commissioner may request from the issuer a copy of
19.23 the annual certification prepared by the developer. The
19.24 commissioner may require the issuer to request individual
19.25 certification of all residents of the project income-restricted
19.26 units.
19.27 Sec. 26. Minnesota Statutes 2000, section 474A.061,
19.28 subdivision 1, is amended to read:
19.29 Subdivision 1. [APPLICATION.] (a) An issuer may apply for
19.30 an allocation under this section by submitting to the department
19.31 an application on forms provided by the department, accompanied
19.32 by (1) a preliminary resolution, (2) a statement of bond counsel
19.33 that the proposed issue of obligations requires an allocation
19.34 under this chapter and the Internal Revenue Code, (3) the type
19.35 of qualified bonds to be issued, (4) an application deposit in
19.36 the amount of one percent of the requested allocation before the
20.1 last Monday in July, or in the amount of two percent of the
20.2 requested allocation on or after the last Monday in July, (5) a
20.3 public purpose scoring worksheet for manufacturing project and
20.4 enterprise zone facility project applications, and (6) for
20.5 residential rental projects, a statement from the applicant or
20.6 bond counsel as to whether the project preserves existing
20.7 federally subsidized housing for residential rental project
20.8 applications and whether the project is restricted to persons
20.9 who are 55 years of age or older. The issuer must pay the
20.10 application deposit by a check made payable to the department of
20.11 finance. The Minnesota housing finance agency, the Minnesota
20.12 rural finance authority, and the Minnesota higher education
20.13 services office may apply for and receive an allocation under
20.14 this section without submitting an application deposit.
20.15 (b) An entitlement issuer may not apply for an allocation
20.16 from the housing pool or from the public facilities pool unless
20.17 it has either permanently issued bonds equal to the amount of
20.18 its entitlement allocation for the current year plus any amount
20.19 of bonding authority carried forward from previous years or
20.20 returned for reallocation all of its unused entitlement
20.21 allocation. For purposes of this subdivision, its entitlement
20.22 allocation includes an amount obtained under section 474A.04,
20.23 subdivision 6. This paragraph does not apply to an application
20.24 from the Minnesota housing finance agency for an allocation
20.25 under subdivision 2a for cities who choose to have the agency
20.26 issue bonds on their behalf.
20.27 (c) If an application is rejected under this section, the
20.28 commissioner must notify the applicant and return the
20.29 application deposit to the applicant within 30 days unless the
20.30 applicant requests in writing that the application be
20.31 resubmitted. The granting of an allocation of bonding authority
20.32 under this section must be evidenced by a certificate of
20.33 allocation.
20.34 Sec. 27. Minnesota Statutes 2000, section 474A.061,
20.35 subdivision 2a, is amended to read:
20.36 Subd. 2a. [HOUSING POOL ALLOCATION.] (a) On the first
21.1 business day that falls on a Monday of the calendar year and the
21.2 first Monday in February Commencing on the second Tuesday in
21.3 January and continuing on each Monday through July 15, the
21.4 commissioner shall allocate available bonding authority in from
21.5 the housing pool to applications received by on or before the
21.6 Monday of the previous preceding week for residential rental
21.7 projects that are not restricted to persons who are 55 years of
21.8 age or older and that meet the eligibility criteria under
21.9 section 474A.047, except that allocations may be made to
21.10 projects that are restricted to persons who are 55 years of age
21.11 or older, if the project preserves existing federally subsidized
21.12 housing. Projects that preserve existing federally subsidized
21.13 housing shall be allocated available bonding authority in the
21.14 housing pool for residential rental projects prior to the
21.15 allocation of available bonding authority to other eligible
21.16 residential rental projects. Allocations of available bonding
21.17 authority from the housing pool for eligible residential rental
21.18 projects shall be awarded in the following order of priority:
21.19 (1) projects that preserve existing federally subsidized
21.20 housing; (2) projects that are not restricted to persons who are
21.21 55 years of age or older; and (3) other residential rental
21.22 projects. Prior to May 15, no allocation shall be made to a
21.23 project restricted to persons who are 55 years of age or older.
21.24 If an issuer that receives an allocation under this paragraph
21.25 does not issue obligations equal to all or a portion of the
21.26 allocation received within 120 days of the allocation or returns
21.27 the allocation to the commissioner, the amount of the allocation
21.28 is canceled and returned for reallocation through the housing
21.29 pool or to the unified pool after July 15.
21.30 (b) After February January 1, and through February January
21.31 15, the Minnesota housing finance agency may accept applications
21.32 from cities for single-family housing programs which meet
21.33 program requirements as follows:
21.34 (1) the housing program must meet a locally identified
21.35 housing need and be economically viable;
21.36 (2) the adjusted income of home buyers may not exceed 80
22.1 percent of the greater of statewide or area median income as
22.2 published by the Department of Housing and Urban Development,
22.3 adjusted for household size;
22.4 (3) house price limits may not exceed the federal price
22.5 limits established for mortgage revenue bond programs. Data on
22.6 the home purchase price amount, mortgage amount, income,
22.7 household size, and race of the households served in the
22.8 previous year's single-family housing program, if any, must be
22.9 included in each application; and
22.10 (4) for applicants who choose to have the agency issue
22.11 bonds on their behalf, an application fee pursuant to section
22.12 474A.03, subdivision 4, and an application deposit equal to one
22.13 percent of the requested allocation must be submitted to the
22.14 Minnesota housing finance agency before the agency forwards the
22.15 list specifying the amounts allocated to the commissioner under
22.16 paragraph (c) (d). The agency shall submit the city's
22.17 application fee and application deposit to the commissioner when
22.18 requesting an allocation from the housing pool.
22.19 Applications by a consortium shall include the name of each
22.20 member of the consortium and the amount of allocation requested
22.21 by each member.
22.22 The Minnesota housing finance agency may accept
22.23 applications from June 15 through June 30 from cities for
22.24 single-family housing programs which meet program requirements
22.25 specified under clauses (1) to (4) if bonding authority is
22.26 available in the housing pool. Applications will be accepted
22.27 from June 15 to June 30 only from cities that received an
22.28 allotment in the same calendar year and used at least 75 percent
22.29 of their allotment by June 1.
22.30 (c) Any amounts remaining in the housing pool after July 15
22.31 are available for single-family housing programs for cities that
22.32 applied in January and received an allocation under this section
22.33 in the same calendar year. For a city that chooses to issue
22.34 bonds on its own behalf or pursuant to a joint powers agreement,
22.35 the agency must allot available bonding authority based on the
22.36 formula in paragraphs (d) and (f). Allocations will be made
23.1 loan by loan, on a first come, first served basis
23.2 among applicant cities on whose behalf the Minnesota housing
23.3 finance agency issues bonds. The agency must allot available
23.4 bonding authority.
23.5 Any city that received an allocation pursuant to paragraph
23.6 (f) in the same calendar year that wishes to issue bonds on its
23.7 own behalf or pursuant to a joint powers agreement for an amount
23.8 becoming available for single-family housing programs after July
23.9 15 shall notify the Minnesota housing finance agency by July
23.10 15. The Minnesota housing finance agency shall notify each city
23.11 making a request of the amount of its allocation within three
23.12 business days after July 15. The city must comply with
23.13 paragraph (f).
23.14 For purposes of paragraphs (a) to (g) (h), "city" means a
23.15 county or a consortium of local government units that agree
23.16 through a joint powers agreement to apply together for
23.17 single-family housing programs, and has the meaning given it in
23.18 section 462C.02, subdivision 6. "Agency" means the Minnesota
23.19 housing finance agency.
23.20 (c) (d) The total amount of allocation for mortgage bonds
23.21 for one city is limited to the lesser of: (i) the amount
23.22 requested, or (ii) the product of the total amount available for
23.23 mortgage bonds from the housing pool, multiplied by the ratio of
23.24 each applicant's population as determined by the most recent
23.25 estimate of the city's population released by the state
23.26 demographer's office to the total of all the applicants'
23.27 population, except that each applicant shall be allocated a
23.28 minimum of $100,000 regardless of the amount requested or the
23.29 amount determined under the formula in clause (ii). If a city
23.30 applying for an allocation is located within a county that has
23.31 also applied for an allocation, the city's population will be
23.32 deducted from the county's population in calculating the amount
23.33 of allocations under this paragraph.
23.34 Upon determining the amount of each applicant's allocation,
23.35 the agency shall forward to the commissioner a list specifying
23.36 the amounts allotted to each application and application deposit
24.1 checks to the commissioner with all application fees and
24.2 deposits from applicants who choose to have the agency issue
24.3 bonds on their behalf.
24.4 Total allocations from the housing pool for single-family
24.5 housing programs may not exceed 31 percent of the adjusted
24.6 allocation to the housing pool until after July 15.
24.7 (d) (e) The agency may issue bonds on behalf of
24.8 participating cities. The agency shall request an allocation
24.9 from the commissioner for all applicants who choose to have the
24.10 agency issue bonds on their behalf and the commissioner shall
24.11 allocate the requested amount to the agency. The agency may
24.12 request an allocation at any time after the first Monday second
24.13 Tuesday in February January and through the last Monday in July,
24.14 but may request an allocation no later than the last Monday in
24.15 July. After awarding an allocation and receiving a notice of
24.16 issuance for the mortgage bonds issued on behalf of the
24.17 participating cities, the commissioner shall transfer the
24.18 application deposits to the Minnesota housing finance agency to
24.19 be returned to the participating cities. The commissioner
24.20 Minnesota housing finance agency shall return any application
24.21 deposit to a city that paid an application deposit under
24.22 paragraph (b), clause (4), but was not part of the list
24.23 forwarded to the commissioner under paragraph (c) (d).
24.24 (e) (f) A city may choose to issue bonds on its own behalf
24.25 or through a joint powers agreement or may use bonding authority
24.26 for mortgage credit certificates and may request an allocation
24.27 from the commissioner by forwarding an application with an
24.28 application fee pursuant to section 474A.03, subdivision 4, and
24.29 a one percent application deposit to the commissioner no later
24.30 than the Monday of the week preceding an allocation. If the
24.31 total amount requested by all applicants exceeds the amount
24.32 available in the pool, the city may not receive a greater
24.33 allocation than the amount it would have received under the list
24.34 forwarded by the Minnesota housing finance agency to the
24.35 commissioner. No city may request or receive an allocation from
24.36 the commissioner until the list under paragraph (c) (d) has been
25.1 forwarded to the commissioner. A city must request an
25.2 allocation from the commissioner no later than 14 days before
25.3 the unified pool is created pursuant to section 474A.091,
25.4 subdivision 1 the last Monday in July. On and after the first
25.5 Monday in February and through the last Monday in July, No city
25.6 may receive an allocation from the housing pool for mortgage
25.7 bonds which has not first applied to the Minnesota housing
25.8 finance agency. The commissioner shall allocate the requested
25.9 amount to the city or cities subject to the limitations under
25.10 this paragraph.
25.11 If a city issues mortgage bonds from an allocation received
25.12 under this paragraph, the issuer must provide for the recycling
25.13 of funds into new loans. If the issuer is not able to provide
25.14 for recycling, the issuer must notify the commissioner in
25.15 writing of the reason that recycling was not possible and the
25.16 reason the issuer elected not to have the Minnesota housing
25.17 finance agency issue the bonds. "Recycling" means the use of
25.18 money generated from the repayment and prepayment of loans for
25.19 further eligible loans or for the redemption of bonds and the
25.20 issuance of current refunding bonds.
25.21 (f) (g) No entitlement city or county or city in an
25.22 entitlement county may apply for or be allocated authority to
25.23 issue mortgage bonds or use mortgage credit certificates from
25.24 the housing pool. No city in an entitlement county may apply
25.25 for or be allocated authority to issue residential rental bonds
25.26 from the housing pool or the unified pool.
25.27 (g) (h) A city that does not use at least 50 percent of its
25.28 allotment by the date applications are due for the first
25.29 allocation that is made from the housing pool for single-family
25.30 housing programs in the immediately succeeding calendar year may
25.31 not apply to the housing pool for a single-family mortgage bond
25.32 or mortgage credit certificate program allocation that exceeds
25.33 the amount of its allotment for the preceding year that was used
25.34 by the city in the immediately preceding year or receive an
25.35 allotment from the housing pool in the succeeding calendar year
25.36 that exceeds the amount of its allotment for the preceding year
26.1 that was used in the preceding year. The minimum allotment is
26.2 $100,000 for an allocation made prior to July 15, regardless of
26.3 the amount used in the preceding calendar year, except that a
26.4 city whose allocation in the preceding year was the minimum
26.5 amount of $100,000 and who did not use at least 50 percent of
26.6 its allocation from the preceding year is ineligible for an
26.7 allocation in the immediate succeeding calendar year. Each
26.8 local government unit in a consortium must meet the requirements
26.9 of this paragraph.
26.10 Sec. 28. Minnesota Statutes 2000, section 474A.061,
26.11 subdivision 2b, is amended to read:
26.12 Subd. 2b. [SMALL ISSUE POOL ALLOCATION.] On the first
26.13 Monday in January that is a business day through the last Monday
26.14 in July Commencing on the second Tuesday in January and
26.15 continuing on each Monday through the last Monday in July, the
26.16 commissioner shall allocate available bonding authority from the
26.17 small issue pool on Monday of each week to applications received
26.18 on or before the Monday of the preceding week for manufacturing
26.19 projects and enterprise zone facility projects. From the first
26.20 Monday in January that is a business day second Tuesday in
26.21 January through the last Monday in July, the commissioner shall
26.22 reserve $5,000,000 of the available bonding authority from the
26.23 small issue pool for applications for agricultural development
26.24 bond loan projects of the Minnesota rural finance authority.
26.25 Beginning in calendar year 2002, on the second Tuesday in
26.26 January through the last Monday in July, the commissioner shall
26.27 reserve $10,000,000 of available bonding authority in the small
26.28 issue pool for applications for student loan bonds of or on
26.29 behalf of the Minnesota higher education services office. The
26.30 total amount of allocations for student loan bonds from the
26.31 small issue pool may not exceed $10,000,000 per year.
26.32 The commissioner shall reserve $10,000,000 until the day
26.33 after the last Monday in February, $10,000,000 until the day
26.34 after the last Monday in April, and $10,000,000 until the day
26.35 after the last Monday in June in the small issue pool
26.36 for enterprise zone facility projects and manufacturing
27.1 projects. The amount of allocation provided to an issuer for a
27.2 specific enterprise zone facility project or manufacturing
27.3 project will be based on the number of points received for the
27.4 proposed project under the scoring system under section
27.5 474A.045. Proposed projects that receive 50 points or more are
27.6 eligible for all of the proposed allocation. Proposed projects
27.7 that receive less than 50 points are eligible to receive a
27.8 proportionally reduced share of the proposed authority, based
27.9 upon the number of points received.
27.10 If there are two or more applications for manufacturing and
27.11 enterprise zone facility projects from the small issue pool and
27.12 there is insufficient bonding authority to provide allocations
27.13 for all projects in any one week, the available bonding
27.14 authority shall be awarded based on the number of points awarded
27.15 a project under section 474A.045, with those projects receiving
27.16 the greatest number of points receiving allocation first. If
27.17 two or more applications receive an equal number of points,
27.18 available bonding authority shall be awarded by lot unless
27.19 otherwise agreed to by the respective issuers.
27.20 Sec. 29. Minnesota Statutes 2000, section 474A.061,
27.21 subdivision 2c, is amended to read:
27.22 Subd. 2c. [PUBLIC FACILITIES POOL ALLOCATION.] From the
27.23 beginning of the calendar year and continuing for a period of
27.24 120 days, the commissioner shall reserve $5,000,000 $3,000,000
27.25 of the available bonding authority from the public facilities
27.26 pool for applications for public facilities projects to be
27.27 financed by the Western Lake Superior Sanitary District. On the
27.28 first Monday in January that is a business day through the last
27.29 Monday in July Commencing on the second Tuesday in January and
27.30 continuing on each Monday through the last Monday in July, the
27.31 commissioner shall allocate available bonding authority from the
27.32 public facilities pool on Monday of each week to applications
27.33 for eligible public facilities projects received on or before
27.34 the Monday of the preceding week. If there are two or more
27.35 applications for public facilities projects from the pool and
27.36 there is insufficient available bonding authority to provide
28.1 allocations for all projects in any one week, the available
28.2 bonding authority shall be awarded by lot unless otherwise
28.3 agreed to by the respective issuers.
28.4 Sec. 30. Minnesota Statutes 2000, section 474A.061,
28.5 subdivision 4, is amended to read:
28.6 Subd. 4. [RETURN OF ALLOCATION; DEPOSIT REFUND.] (a) If an
28.7 issuer that receives an allocation under this section determines
28.8 that it will not issue obligations equal to all or a portion of
28.9 the allocation received under this section within 120 days of
28.10 allocation or within the time period permitted by federal tax
28.11 law, whichever is less, the issuer must notify the department.
28.12 If the issuer notifies the department or the 120-day period
28.13 since allocation has expired prior to the last Monday in July,
28.14 the amount of allocation is canceled and returned for
28.15 reallocation through the pool from which it was originally
28.16 allocated. If the issuer notifies the department or the 120-day
28.17 period since allocation has expired on or after the last Monday
28.18 in July, the amount of allocation is canceled and returned for
28.19 reallocation through the unified pool. If the issuer notifies
28.20 the department after the last Monday in November, the amount of
28.21 allocation is canceled and returned for reallocation to the
28.22 Minnesota housing finance agency. To encourage a competitive
28.23 application process, the commissioner shall reserve, for new
28.24 applications, the amount of allocation that is canceled and
28.25 returned for reallocation under this section for a minimum of
28.26 seven calendar days.
28.27 (b) An issuer that returns for reallocation all or a
28.28 portion of an allocation received under this section within 120
28.29 days of allocation shall receive within 30 days a refund equal
28.30 to:
28.31 (1) one-half of the application deposit for the amount of
28.32 bonding authority returned within 30 days of receiving
28.33 allocation;
28.34 (2) one-fourth of the application deposit for the amount of
28.35 bonding authority returned between 31 and 60 days of receiving
28.36 allocation; and
29.1 (3) one-eighth of the application deposit for the amount of
29.2 bonding authority returned between 61 and 120 days of receiving
29.3 allocation.
29.4 (c) No refund shall be available for allocations returned
29.5 120 or more days after receiving the allocation or beyond the
29.6 last Monday in November. This subdivision does not apply to the
29.7 Minnesota housing finance agency or the Minnesota rural finance
29.8 authority.
29.9 Sec. 31. [474A.062] [HESO 120-DAY ISSUANCE EXEMPTION.]
29.10 The Minnesota higher education services office is exempt
29.11 from the 120-day issuance requirements in this chapter and may
29.12 carry forward allocations for student loan bonds into three
29.13 successive calendar years, subject to carryforward notice
29.14 requirements of section 474A.131, subdivision 2. The maximum
29.15 cumulative carryforward is limited to $25,000,000.
29.16 Sec. 32. Minnesota Statutes 2000, section 474A.091,
29.17 subdivision 2, is amended to read:
29.18 Subd. 2. [APPLICATION.] Issuers may apply for an
29.19 allocation under this section by submitting to the department an
29.20 application on forms provided by the department accompanied by
29.21 (1) a preliminary resolution, (2) a statement of bond counsel
29.22 that the proposed issue of obligations requires an allocation
29.23 under this chapter and the Internal Revenue Code, (3) the type
29.24 of qualified bonds to be issued, (4) an application deposit in
29.25 the amount of two percent of the requested allocation, and (5) a
29.26 public purpose scoring worksheet for manufacturing and
29.27 enterprise zone applications, and (6) for residential rental
29.28 projects, a statement from the applicant or bond counsel as to
29.29 whether the project preserves existing federally subsidized
29.30 housing and whether the project is restricted to persons who are
29.31 55 years of age or older. The issuer must pay the application
29.32 deposit by check. An entitlement issuer may not apply for an
29.33 allocation for public facility bonds, residential rental project
29.34 bonds, or mortgage bonds under this section unless it has either
29.35 permanently issued bonds equal to the amount of its entitlement
29.36 allocation for the current year plus any amount carried forward
30.1 from previous years or returned for reallocation all of its
30.2 unused entitlement allocation. For purposes of this
30.3 subdivision, its entitlement allocation includes an amount
30.4 obtained under section 474A.04, subdivision 6.
30.5 Notwithstanding the restrictions imposed on entitlement
30.6 issuers under this subdivision, the Minnesota housing finance
30.7 agency may not apply for receive an allocation for mortgage
30.8 bonds under this section until after prior to the last first
30.9 Monday in August. Notwithstanding the restrictions imposed on
30.10 unified pool allocations after September 1 under subdivision 3,
30.11 paragraph (c)(2), the Minnesota housing finance agency October,
30.12 but may be awarded allocations for mortgage bonds from the
30.13 unified pool on or after September 1 the first Monday in
30.14 October. The Minnesota housing finance agency, the Minnesota
30.15 higher education services office, and the Minnesota rural
30.16 finance authority may apply for and receive an allocation under
30.17 this section without submitting an application deposit.
30.18 Sec. 33. Minnesota Statutes 2000, section 474A.091,
30.19 subdivision 3, is amended to read:
30.20 Subd. 3. [ALLOCATION PROCEDURE.] (a) The commissioner
30.21 shall allocate available bonding authority under this section on
30.22 the Monday of every other week beginning with the first Monday
30.23 in August through and on the last Monday in November.
30.24 Applications for allocations must be received by the department
30.25 by 4:30 p.m. on the Monday preceding the Monday on which
30.26 allocations are to be made. If a Monday falls on a holiday, the
30.27 allocation will be made or the applications must be received by
30.28 the next business day after the holiday.
30.29 (b) On or before September 1, allocations shall be awarded
30.30 from the unified pool in the following order of priority:
30.31 (1) applications for enterprise zone facility bonds;
30.32 (2) applications for small issue bonds for manufacturing
30.33 projects;
30.34 (3) applications for small issue bonds for agricultural
30.35 development bond loan projects;
30.36 (4) applications for residential rental project bonds;
31.1 (5) applications for public facility projects funded by
31.2 public facility bonds;
31.3 (6) applications for redevelopment bonds;
31.4 (7) applications for mortgage bonds; and
31.5 (8) applications for governmental bonds.
31.6 Allocations for residential rental projects may only be
31.7 made during the first allocation in August. The amount of
31.8 allocation provided to an issuer for a specific manufacturing
31.9 project will be based on the number of points received for the
31.10 proposed project under the scoring system under section 474A.045.
31.11 Proposed manufacturing projects that receive 50 points or more
31.12 are eligible for all of the proposed allocation. Proposed
31.13 manufacturing projects that receive less than 50 points under
31.14 section 474A.045 are only eligible to receive a proportionally
31.15 reduced share of the proposed authority, based upon the number
31.16 of points received.
31.17 (b) Prior to October 1, only the following applications
31.18 shall be awarded allocations from the unified pool. Allocations
31.19 shall be awarded in the following order of priority:
31.20 (1) applications for residential rental project bonds;
31.21 (2) applications for small issue bonds for manufacturing
31.22 projects; and
31.23 (3) applications for small issue bonds for agricultural
31.24 development bond loan projects.
31.25 (c) On the first Monday in October through the last Monday
31.26 in November, allocations shall be awarded from the unified pool
31.27 in the following order of priority:
31.28 (1) applications for student loan bonds issued by or on
31.29 behalf of the Minnesota higher education services office;
31.30 (2) applications for mortgage bonds;
31.31 (3) applications for public facility projects funded by
31.32 public facility bonds;
31.33 (4) applications for small issue bonds for manufacturing
31.34 projects;
31.35 (5) applications for small issue bonds for agricultural
31.36 development bond loan projects;
32.1 (6) applications for residential rental project bonds;
32.2 (7) applications for enterprise zone facility bonds;
32.3 (8) applications for governmental bonds; and
32.4 (9) applications for redevelopment bonds.
32.5 (d) If there are two or more applications for manufacturing
32.6 projects from the unified pool and there is insufficient bonding
32.7 authority to provide allocations for all manufacturing projects
32.8 in any one allocation period, the available bonding authority
32.9 shall be awarded based on the number of points awarded a project
32.10 under section 474A.045 with those projects receiving the
32.11 greatest number of points receiving allocation first. If two or
32.12 more applications for manufacturing projects receive an equal
32.13 amount of points, available bonding authority shall be awarded
32.14 by lot unless otherwise agreed to by the respective issuers.
32.15 (e) If there are two or more applications for enterprise
32.16 zone facility projects from the unified pool and there is
32.17 insufficient bonding authority to provide allocations for all
32.18 enterprise zone facility projects in any one allocation period,
32.19 the available bonding authority shall be awarded based on the
32.20 number of points awarded a project under section 474A.045 with
32.21 those projects receiving the greatest number of points receiving
32.22 allocation first. If two or more applications for enterprise
32.23 zone facility projects receive an equal amount of points,
32.24 available bonding authority shall be awarded by lot unless
32.25 otherwise agreed to by the respective issuers.
32.26 (f) If there are two or more applications for residential
32.27 rental projects from the unified pool and there is insufficient
32.28 bonding authority to provide allocations for all residential
32.29 rental projects in any one allocation period, the available
32.30 bonding authority shall be awarded in the following order of
32.31 priority: (1) projects that preserve existing federally
32.32 subsidized housing; (2) projects that are not restricted to
32.33 persons who are 55 years of age or older; and (3) other
32.34 residential rental projects.
32.35 (c)(1) (g) From the first Monday in August through the last
32.36 Monday in November, $20,000,000 of bonding authority or an
33.1 amount equal to the total annual amount of bonding authority
33.2 allocated to the small issue pool under section 474A.03,
33.3 subdivision 1, less the amount allocated to issuers from the
33.4 small issue pool for that year, whichever is less, is reserved
33.5 within the unified pool for small issue bonds to the extent such
33.6 amounts are available within the unified pool. On the first
33.7 Monday in September through the last Monday in November,
33.8 $2,500,000 of bonding authority or an amount equal to the total
33.9 annual amount of bonding authority allocated to the public
33.10 facilities pool under section 474A.03, subdivision 1, less the
33.11 amount allocated to issuers from the public facilities pool for
33.12 that year, whichever is less, is reserved within the unified
33.13 pool for public facility bonds to the extent such amounts are
33.14 available within the unified pool.
33.15 (2) (h) The total amount of allocations for mortgage bonds
33.16 from the housing pool and the unified pool may not exceed:
33.17 (i) (1) $10,000,000 for any one city; or
33.18 (ii) (2) $20,000,000 for any number of cities in any one
33.19 county.
33.20 An allocation for mortgage bonds may be used for mortgage
33.21 credit certificates.
33.22 (d) After September 1, allocations shall be awarded from
33.23 the unified pool only for the following types of qualified bonds:
33.24 small issue bonds, public facility bonds to finance publicly
33.25 owned facility projects, residential rental project bonds, and
33.26 enterprise zone facility bonds.
33.27 (i) The total amount of allocations for student loan bonds
33.28 from the unified pool may not exceed $10,000,000 per year.
33.29 (j) If there is insufficient bonding authority to fund all
33.30 projects within any qualified bond category other than
33.31 enterprise zone facility projects, manufacturing projects, and
33.32 residential rental projects, allocations shall be awarded by lot
33.33 unless otherwise agreed to by the respective issuers.
33.34 (k) If an application is rejected, the commissioner must
33.35 notify the applicant and return the application deposit to the
33.36 applicant within 30 days unless the applicant requests in
34.1 writing that the application be resubmitted.
34.2 (l) The granting of an allocation of bonding authority
34.3 under this section must be evidenced by issuance of a
34.4 certificate of allocation.
34.5 Sec. 34. Minnesota Statutes 2000, section 474A.091, is
34.6 amended by adding a subdivision to read:
34.7 Subd. 3a. [MORTGAGE BONDS.] (a) Bonding authority
34.8 remaining in the unified pool on October 1 is available for
34.9 single-family housing programs for cities that applied in
34.10 January and received an allocation under section 474A.061,
34.11 subdivision 2a, in the same calendar year. The Minnesota
34.12 housing finance agency shall receive an allocation for mortgage
34.13 bonds pursuant to this section, minus any amounts for a city or
34.14 consortium that intends to issue bonds on its own behalf under
34.15 paragraph (c).
34.16 (b) The agency may issue bonds on behalf of participating
34.17 cities. The agency shall request an allocation from the
34.18 commissioner for all applicants who choose to have the agency
34.19 issue bonds on their behalf and the commissioner shall allocate
34.20 the requested amount to the agency. Allocations shall be
34.21 awarded by the commissioner each Monday commencing on the first
34.22 Monday in October through the last Monday in November for
34.23 applications received by 4:30 p.m. on the Monday of the week
34.24 preceding an allocation.
34.25 For cities who choose to have the agency issue bonds on
34.26 their behalf, allocations will be made loan by loan, on a first
34.27 come, first served basis among the cities. The agency shall
34.28 submit an application fee pursuant to section 474A.03,
34.29 subdivision 4, and an application deposit equal to two percent
34.30 of the requested allocation to the commissioner when requesting
34.31 an allocation from the unified pool. After awarding an
34.32 allocation and receiving a notice of issuance for mortgage bonds
34.33 issued on behalf of the participating cities, the commissioner
34.34 shall transfer the application deposit to the Minnesota housing
34.35 finance agency.
34.36 For purposes of paragraphs (a) to (d), "city" means a
35.1 county or a consortium of local government units that agree
35.2 through a joint powers agreement to apply together for
35.3 single-family housing programs, and has the meaning given it in
35.4 section 462C.02, subdivision 6. "Agency" means the Minnesota
35.5 housing finance agency.
35.6 (c) Any city that received an allocation pursuant to
35.7 section 474A.061, subdivision 2a, paragraph (f), in the current
35.8 year that wishes to receive an additional allocation from the
35.9 unified pool and issue bonds on its own behalf or pursuant to a
35.10 joint powers agreement shall notify the Minnesota housing
35.11 finance agency by the third Monday in September. The total
35.12 amount of allocation for mortgage bonds for a city choosing to
35.13 issue bonds on its own behalf or through a joint powers
35.14 agreement is limited to the lesser of: (i) the amount
35.15 requested, or (ii) the product of the total amount available for
35.16 mortgage bonds from the unified pool, multiplied by the ratio of
35.17 the population of each city that applied in January and received
35.18 an allocation under section 474A.061, subdivision 2a, in the
35.19 same calendar year, as determined by the most recent estimate of
35.20 the city's population released by the state demographer's office
35.21 to the total of the population of all the cities that applied in
35.22 January and received an allocation under section 474A.061,
35.23 subdivision 2a, in the same calendar year. If a city choosing
35.24 to issue bonds on its own behalf or through a joint powers
35.25 agreement is located within a county that has also chosen to
35.26 issue bonds on its own behalf or through a joint powers
35.27 agreement, the city's population will be deducted from the
35.28 county's population in calculating the amount of allocations
35.29 under this paragraph.
35.30 The Minnesota housing finance agency shall notify each city
35.31 choosing to issue bonds on its own behalf or pursuant to a joint
35.32 powers agreement of the amount of its allocation by October 15.
35.33 Upon determining the amount of the allocation of each choosing
35.34 to issue bonds on its own behalf or through a joint powers
35.35 agreement, the agency shall forward a list specifying the
35.36 amounts allotted to each city.
36.1 A city that chooses to issue bonds on its own behalf or
36.2 through a joint powers agreement may request an allocation from
36.3 the commissioner by forwarding an application with an
36.4 application fee pursuant to section 474A.03, subdivision 4, and
36.5 an application deposit equal to two percent of the requested
36.6 amount to the commissioner no later than 4:30 p.m. on the Monday
36.7 of the week preceding an allocation. Allocations to cities that
36.8 choose to issue bonds on their own behalf shall be awarded by
36.9 the commissioner on the first Monday after October 15 through
36.10 the last Monday in November. No city may receive an allocation
36.11 from the commissioner after the last Monday in November. The
36.12 commissioner shall allocate the requested amount to the city or
36.13 cities subject to the limitations under this subdivision.
36.14 If a city issues mortgage bonds from an allocation received
36.15 under this paragraph, the issuer must provide for the recycling
36.16 of funds into new loans. If the issuer is not able to provide
36.17 for recycling, the issuer must notify the commissioner in
36.18 writing of the reason that recycling was not possible and the
36.19 reason the issuer elected not to have the Minnesota housing
36.20 finance agency issue the bonds. "Recycling" means the use of
36.21 money generated from the repayment and prepayment of loans for
36.22 further eligible loans or for the redemption of bonds and the
36.23 issuance of current refunding bonds.
36.24 (d) No entitlement city or county or city in an entitlement
36.25 county may apply for or be allocated authority to issue mortgage
36.26 bonds or use mortgage credit certificates from the unified pool.
36.27 (e) An allocation awarded to the agency for mortgage bonds
36.28 under this section may be carried forward by the agency into the
36.29 next succeeding calendar year subject to notice requirements
36.30 under section 474A.131 and is available until the last business
36.31 day in December of that succeeding calendar year.
36.32 Sec. 35. Minnesota Statutes 2000, section 474A.091,
36.33 subdivision 4, is amended to read:
36.34 Subd. 4. [MORTGAGE BONDS REMAINING BONDING AUTHORITY.] All
36.35 remaining bonding authority available for allocation under this
36.36 section on December 1, is allocated to the Minnesota housing
37.1 finance agency.
37.2 Sec. 36. Minnesota Statutes 2000, section 474A.091,
37.3 subdivision 5, is amended to read:
37.4 Subd. 5. [RETURN OF ALLOCATION; DEPOSIT REFUND.] (a) If an
37.5 issuer that receives an allocation under this section determines
37.6 that it will not issue obligations equal to all or a portion of
37.7 the allocation received under this section within 120 days of
37.8 the allocation or within the time period permitted by federal
37.9 tax law, whichever is less, the issuer must notify the
37.10 department. If the issuer notifies the department or the
37.11 120-day period since allocation has expired prior to the last
37.12 Monday in November, the amount of allocation is canceled and
37.13 returned for reallocation through the unified pool. If the
37.14 issuer notifies the department on or after the last Monday in
37.15 November, the amount of allocation is canceled and returned for
37.16 reallocation to the Minnesota housing finance agency. To
37.17 encourage a competitive application process, the commissioner
37.18 shall reserve, for new applications, the amount of allocation
37.19 that is canceled and returned for reallocation under this
37.20 section for a minimum of seven calendar days.
37.21 (b) An issuer that returns for reallocation all or a
37.22 portion of an allocation received under this section within 120
37.23 days of the allocation shall receive within 30 days a refund
37.24 equal to:
37.25 (1) one-half of the application deposit for the amount of
37.26 bonding authority returned within 30 days of receiving the
37.27 allocation;
37.28 (2) one-fourth of the application deposit for the amount of
37.29 bonding authority returned between 31 and 60 days of receiving
37.30 the allocation; and
37.31 (3) one-eighth of the application deposit for the amount of
37.32 bonding authority returned between 61 and 120 days of receiving
37.33 the allocation.
37.34 (c) No refund of the application deposit shall be available
37.35 for allocations returned on or after the last Monday in November.
37.36 This subdivision does not apply to the Minnesota housing finance
38.1 agency, or the Minnesota rural finance authority.
38.2 Sec. 37. Minnesota Statutes 2000, section 474A.091,
38.3 subdivision 6, is amended to read:
38.4 Subd. 6. [FINAL ALLOCATION; CARRYFORWARD.] Notwithstanding
38.5 the notice requirements of section 474A.131, subdivision 2, any
38.6 bonding authority remaining unissued by the Minnesota housing
38.7 finance agency on the last business day in December shall be
38.8 carried forward into the next calendar year by the commissioner
38.9 for the Minnesota housing finance agency in accordance with
38.10 section 474A.131, subdivision 2.
38.11 Sec. 38. Minnesota Statutes 2000, section 474A.131,
38.12 subdivision 1, is amended to read:
38.13 Subdivision 1. [NOTICE OF ISSUE.] Each issuer that issues
38.14 bonds with an allocation received under this chapter shall
38.15 provide a notice of issue to the department on forms provided by
38.16 the department stating:
38.17 (1) the date of issuance of the bonds;
38.18 (2) the title of the issue;
38.19 (3) the principal amount of the bonds;
38.20 (4) the type of qualified bonds under federal tax law; and
38.21 (5) the dollar amount of the bonds issued that were subject
38.22 to the annual volume cap; and
38.23 (6) for entitlement issuers, whether the allocation is from
38.24 current year entitlement authority or is from carry forward
38.25 authority.
38.26 For obligations that are issued as a part of a series of
38.27 obligations, a notice must be provided for each series. A
38.28 penalty of one-half of the amount of the application deposit not
38.29 to exceed $5,000 shall apply to any issue of obligations for
38.30 which a notice of issue is not provided to the department within
38.31 five business days after issuance or before the last Monday in
38.32 December, whichever occurs first. Within 30 days after receipt
38.33 of a notice of issue the department shall refund a portion of
38.34 the application deposit equal to one percent of the amount of
38.35 the bonding authority actually issued if a one percent
38.36 application deposit was made, or equal to two percent of the
39.1 amount of the bonding authority actually issued if a two percent
39.2 application deposit was made, less any penalty amount.
39.3 Sec. 39. Minnesota Statutes 2000, section 474A.131, is
39.4 amended by adding a subdivision to read:
39.5 Subd. 1b. [DEADLINE FOR ISSUANCE OF QUALIFIED BONDS.] If
39.6 an issuer fails to notify the department before 4:30 p.m. on the
39.7 last business day in December of issuance of obligations
39.8 pursuant to an allocation received for any qualified bond
39.9 project or issuance of an entitlement allocation, the allocation
39.10 is canceled and the bonding authority is allocated to the
39.11 Minnesota housing finance agency for carryforward by the
39.12 commissioner under section 474A.091, subdivision 6.
39.13 Sec. 40. Minnesota Statutes 2000, section 474A.131,
39.14 subdivision 2, is amended to read:
39.15 Subd. 2. [CARRYFORWARD NOTICE.] If an issuer intends to
39.16 carry forward an allocation received under this chapter, it must
39.17 notify the department in writing before 4:30 p.m. on the last
39.18 Monday of business day in December. This notice requirement
39.19 does not apply to the Minnesota housing finance agency for the
39.20 carryforward of unallocated unified pool balances.
39.21 Sec. 41. Minnesota Statutes 2000, section 474A.14, is
39.22 amended to read:
39.23 474A.14 [NOTICE OF AVAILABLE AUTHORITY.]
39.24 The department shall publish in the State Register a
39.25 provide at its official Web site a written notice of the amount
39.26 of bonding authority in the housing, small issue, and public
39.27 facilities pools as soon after January 1 as possible. The
39.28 department shall publish in the State Register a provide at its
39.29 official Web site a written notice of the amount of bonding
39.30 authority available for allocation in the unified pool as soon
39.31 after August 1 as possible.
39.32 Sec. 42. Minnesota Statutes 2000, section 475.54,
39.33 subdivision 1, is amended to read:
39.34 Subdivision 1. [IN INSTALLMENTS; EXCEPTION; ANNUAL LIMIT.]
39.35 Except as provided in subdivision 3, 5a, 15, or 17, or as
39.36 expressly authorized in another law, all obligations of each
40.1 issue shall mature or be subject to mandatory sinking fund
40.2 redemption in installments, the first not later than three years
40.3 and the last not later than 30 years from the date of the issue;
40.4 or 40 years or the useful life of the asset, whichever is less,
40.5 for municipal water and wastewater treatment systems and
40.6 essential community facilities financed or guaranteed by the
40.7 United States Department of Agriculture. No amount of principal
40.8 of the issue payable in any calendar year shall exceed five
40.9 times the an amount of equal to the smallest amount payable in
40.10 any preceding calendar year ending three years or more after the
40.11 issue date multiplied:
40.12 (1) by five, in the case of obligations maturing not later
40.13 than 25 years from the date of issue; and
40.14 (2) by six, in the case of obligations maturing 25 years or
40.15 later from the date of issue.
40.16 [EFFECTIVE DATE.] This section is effective the day
40.17 following final enactment.
40.18 Sec. 43. Minnesota Statutes 2000, section 475.58,
40.19 subdivision 1, is amended to read:
40.20 Subdivision 1. [APPROVAL BY ELECTORS; EXCEPTIONS.]
40.21 Obligations authorized by law or charter may be issued by any
40.22 municipality upon obtaining the approval of a majority of the
40.23 electors voting on the question of issuing the obligations, but
40.24 an election shall not be required to authorize obligations
40.25 issued:
40.26 (1) to pay any unpaid judgment against the municipality;
40.27 (2) for refunding obligations;
40.28 (3) for an improvement or improvement program, which
40.29 obligation is payable wholly or partly from the proceeds of
40.30 special assessments levied upon property specially benefited by
40.31 the improvement or by an improvement within the improvement
40.32 program, or of taxes levied upon the increased value of property
40.33 within a district for the development of which the improvement
40.34 is undertaken, including obligations which are the general
40.35 obligations of the municipality, if the municipality is entitled
40.36 to reimbursement in whole or in part from the proceeds of such
41.1 special assessments or taxes and not less than 20 percent of the
41.2 cost of the improvement or the improvement program is to be
41.3 assessed against benefited property or is to be paid from the
41.4 proceeds of federal grant funds or a combination thereof, or is
41.5 estimated to be received from such taxes within the district;
41.6 (4) payable wholly from the income of revenue producing
41.7 conveniences;
41.8 (5) under the provisions of a home rule charter which
41.9 permits the issuance of obligations of the municipality without
41.10 election;
41.11 (6) under the provisions of a law which permits the
41.12 issuance of obligations of a municipality without an election;
41.13 (7) to fund pension or retirement fund liabilities pursuant
41.14 to section 475.52, subdivision 6;
41.15 (8) under a capital improvement plan under section
41.16 373.40; and
41.17 (9) to fund facilities as provided in subdivision 3; and
41.18 (10) under sections 469.1813 to 469.1815 (property tax
41.19 abatement authority bonds).
41.20 Sec. 44. Minnesota Statutes 2000, section 475.59, is
41.21 amended to read:
41.22 475.59 [MANNER OF SUBMISSION; NOTICE.]
41.23 When the governing body of a municipality resolves to issue
41.24 bonds for any purpose requiring the approval of the electors, it
41.25 shall provide for submission of the proposition of their
41.26 issuance at a general or special election or town or school
41.27 district meeting. Notice of such election or meeting shall be
41.28 given in the manner required by law and shall state the maximum
41.29 amount and the purpose of the proposed issue. In any school
41.30 district, the school board or board of education may, according
41.31 to its judgment and discretion, submit as a single ballot
41.32 question or as two or more separate questions in the notice of
41.33 election and ballots the proposition of their issuance for any
41.34 one or more of the following, stated conjunctively or in the
41.35 alternative: acquisition or enlargement of sites, acquisition,
41.36 betterment, erection, furnishing, equipping of one or more new
42.1 schoolhouses, remodeling, repairing, improving, adding to,
42.2 betterment, furnishing, equipping of one or more existing
42.3 schoolhouses. In any city, town, or county, the governing body
42.4 may, according to its judgment and discretion, submit as a
42.5 single ballot question or as two or more separate questions in
42.6 the notice of election and ballots the proposition of their
42.7 issuance, stated conjunctively or in the alternative, for the
42.8 acquisition, construction, or improvement of any facilities at
42.9 one or more locations.
42.10 Sec. 45. Laws 1974, chapter 473, is amended to read:
42.11 Section 1. [SCOTT COUNTY; HOUSING AND REDEVELOPMENT
42.12 AUTHORITY.] There is hereby created in Scott county a public
42.13 body corporate and politic, to be known as the Scott county
42.14 housing and redevelopment authority, having all of the powers
42.15 and duties of a housing and redevelopment authority under the
42.16 provisions of the municipal housing and redevelopment act,
42.17 Minnesota Statutes, Sections 462.411 to 462.711, and acts
42.18 amendatory thereof; which act applies to the county of
42.19 Scott 469.001 to 469.047, and having those powers of an economic
42.20 development authority under the provisions of Minnesota
42.21 Statutes, sections 469.090 to 469.180 as are granted to it by
42.22 Scott county as provided below. For the purposes of applying
42.23 the provisions of the municipal housing and redevelopment
42.24 act Minnesota Statutes, sections 469.001 to 469.047 and 469.090
42.25 to 469.180, to Scott county, the county has all the powers and
42.26 duties of a municipality, the county board has all of the powers
42.27 and duties of a governing body, the chairman of the county board
42.28 has all of the powers and duties of a mayor, and the area of
42.29 operation includes the area within the territorial boundaries of
42.30 the county.
42.31 Sec. 2. [APPLICATION.] Subdivision 1. This act shall not
42.32 limit or restrict any existing housing and redevelopment
42.33 authority or prevent a municipality from creating an authority.
42.34 The county shall not exercise jurisdiction in any municipality
42.35 where a municipal housing and redevelopment authority is
42.36 established.
43.1 Subd. 2. A municipal housing and redevelopment authority
43.2 may request the Scott county housing and redevelopment authority
43.3 to handle the housing duties of the authority and, in such an
43.4 event, the Scott county housing and redevelopment authority
43.5 shall act and have exclusive jurisdiction for housing in the
43.6 municipality pursuant to the provisions of the municipal housing
43.7 and redevelopment act, Minnesota Statutes, Sections 462.411 to
43.8 462.711, and acts amendatory thereof 469.001 to 469.047. A
43.9 transfer of duties relating to housing shall not transfer any
43.10 duties relating to redevelopment.
43.11 Sec. 3. [MUNICIPAL APPROVAL.] If any housing or
43.12 redevelopment project is undertaken in Scott county pursuant to
43.13 this authorization, and such project is within the boundaries of
43.14 any incorporated village, city or township, the location of such
43.15 project shall be approved by the governing body of such village,
43.16 city or township.
43.17 Sec. 4. [ECONOMIC DEVELOPMENT AUTHORITY POWERS.] The Scott
43.18 county housing and redevelopment authority may exercise any of
43.19 the powers of an economic development authority (EDA) granted to
43.20 it by resolution by the Scott county board of commissioners,
43.21 except for the authority to levy the tax described in Minnesota
43.22 Statutes, section 469.107. With the prior approval of the Scott
43.23 county board the authority may increase its levy of the special
43.24 tax described in Minnesota Statutes, section 469.033,
43.25 subdivision 6, to an amount not exceeding 0.01813 percent of
43.26 taxable market value, or any higher limit from time to time
43.27 authorized under Minnesota Statutes, section 469.107 or 469.033,
43.28 subdivision 6.
43.29 Sec. 5. [OFFERS OF TAX-FORFEITED LANDS.] Scott county may
43.30 offer to the Scott county housing and redevelopment authority,
43.31 under the conditions and policies established by the county, and
43.32 subject to the approval of the city in which the property is
43.33 located, nonconservation tax-forfeited land prior to making the
43.34 properties available to cities in Scott county.
43.35 Sec. 4. Sec. 6. [EFFECTIVE DATE; LOCAL APPROVAL.] This act
43.36 takes effect when approved by a majority of the board of county
44.1 commissioners of Scott county and upon compliance with Minnesota
44.2 Statutes, Section 645.021 This act is effective the day after
44.3 the governing body of Scott county and its chief clerical
44.4 officer timely complete their compliance with Minnesota
44.5 Statutes, section 645.021, subdivisions 2 and 3.
44.6 Sec. 46. Laws 1980, chapter 482, is amended to read:
44.7 Section 1. [CARVER COUNTY; HOUSING AND REDEVELOPMENT.]
44.8 Subdivision 1. There is created in the county of Carver a
44.9 public body corporate and politic, to be known as the Carver
44.10 county housing and redevelopment authority, having all of the
44.11 powers and duties of a housing and redevelopment authority under
44.12 the provisions of the municipal housing and redevelopment act,
44.13 Minnesota Statutes, Section 462.411 to 462.711 sections 469.001
44.14 to 469.047, and having those powers of an economic development
44.15 authority under the provisions of Minnesota Statutes, sections
44.16 469.090 to 469.1082, as are granted to it by Carver county as
44.17 provided in sections 2 to 4. For the purposes of applying the
44.18 provisions of the municipal housing and redevelopment
44.19 act Minnesota Statutes, sections 469.001 to 469.047 and 469.090
44.20 to 469.1082, to Carver county, the county has all of the powers
44.21 and duties of a municipality, the county board has all of the
44.22 powers and duties of a governing body, the chairman of the
44.23 county board has all of the powers and duties of a mayor, and
44.24 the area of operation includes the area within the territorial
44.25 boundaries of the county.
44.26 Subd. 2. This section shall not limit or restrict any
44.27 existing housing and redevelopment authority or prevent a
44.28 municipality from creating an authority. The county shall not
44.29 exercise jurisdiction in any municipality where a municipal
44.30 housing and redevelopment authority is established. If a
44.31 municipal housing and redevelopment authority requests the
44.32 Carver county housing and redevelopment authority to handle the
44.33 housing duties of the municipal authority, the Carver county
44.34 housing and redevelopment authority shall act and have exclusive
44.35 jurisdiction for housing in the municipality. A transfer of
44.36 duties relating to housing shall not transfer any duties
45.1 relating to redevelopment.
45.2 Sec. 2. [ECONOMIC DEVELOPMENT AUTHORITY POWERS.] The
45.3 Carver county housing and redevelopment authority may exercise
45.4 any of the powers of an economic development authority granted
45.5 to it by resolution by the Carver county board of commissioners,
45.6 except for the authority to levy the tax described in Minnesota
45.7 Statutes, section 469.107. With the prior approval of the
45.8 Carver county board, the authority may increase its levy of the
45.9 special tax described in Minnesota Statutes, section 469.033,
45.10 subdivision 6, to an amount not exceeding 0.01813 percent of
45.11 taxable market value, or any higher limit from time to time,
45.12 authorized under Minnesota Statutes, section 469.107 or 469.033,
45.13 subdivision 6.
45.14 Sec. 3. [OFFERS OF TAX-FORFEITED LANDS.] Carver county may
45.15 offer to the Carver county housing and redevelopment authority,
45.16 under the conditions and policies established by the county, and
45.17 subject to the approval of the city in which the property is
45.18 located, nonconservation tax-forfeited land prior to making the
45.19 properties available to cities in Carver county.
45.20 Sec. 2. Sec. 4. [LOCAL APPROVAL.] Before a housing or
45.21 redevelopment project of the Carver county housing and
45.22 redevelopment authority is undertaken, the project shall be
45.23 approved by the local governing body with jurisdiction over all
45.24 or any part of the area in which the proposed project is located.
45.25 Sec. 3. Sec. 5. [EFFECTIVE DATE; LOCAL APPROVAL.] This
45.26 act is effective upon takes effect the day of compliance after
45.27 the governing body of Carver county complies with Minnesota
45.28 Statutes, Section 645.021, Subdivision 3 subdivisions 2 and 3.
45.29 Sec. 47. [CHISAGO LAKES JOINT SEWAGE TREATMENT COMMISSION
45.30 BONDING AUTHORITY.]
45.31 Subdivision 1. [AUTHORITY.] Notwithstanding Minnesota
45.32 Statutes, section 471.59, subdivision 11, the Chisago lakes
45.33 joint sewage treatment commission, a joint powers board
45.34 established by the county of Chisago, and the cities of
45.35 Lindstrom, Chisago City, and Center City, to own and operate
45.36 wastewater treatment facilities for the member local
46.1 governments, may issue and sell general obligation bonds
46.2 pursuant to Minnesota Statutes, sections 115.46 and 444.075, and
46.3 chapter 475, to acquire land for, construct, expand, furnish,
46.4 equip, and modify its wastewater treatment facilities, and
46.5 pledge the full faith and credit and taxing power of the
46.6 governmental units that are members of the joint powers board.
46.7 Bonds issued under this section are not subject to Minnesota
46.8 Statutes, section 475.58. The joint powers board is a
46.9 municipality within the meaning of Minnesota Statutes, chapter
46.10 475. Each government unit that is a member of the joint powers
46.11 board must adopt a resolution authorizing the joint powers board
46.12 to issue and sell the bonds.
46.13 Subd. 2. [EFFECTIVE DATE; NO LOCAL APPROVAL.] This section
46.14 is effective the day following final enactment and does not
46.15 require local approval, as provided in Minnesota Statutes,
46.16 section 645.023, subdivision 1, paragraph (a).
46.17 Sec. 48. [HASSAN TOWNSHIP; ECONOMIC DEVELOPMENT AUTHORITY;
46.18 ESTABLISHMENT AND POWERS.]
46.19 Subdivision 1. [FINDINGS.] The legislature finds that it
46.20 is appropriate to give Hassan township the powers of an economic
46.21 development authority because the town is located in an
46.22 increasingly urbanized area and is the only remaining town in
46.23 Hennepin county.
46.24 Subd. 2. [ESTABLISHMENT.] The board of township
46.25 supervisors of Hassan township may establish an economic
46.26 development authority in the manner provided in Minnesota
46.27 Statutes, sections 469.090 to 469.1081, and may impose limits on
46.28 the authority enumerated in Minnesota Statutes, section
46.29 469.092. The economic development authority has all of the
46.30 powers and duties granted to or imposed upon economic
46.31 development authorities under Minnesota Statutes, sections
46.32 469.090 to 469.1081. The township economic development
46.33 authority may create and define the boundaries of economic
46.34 development districts at any place or places within the
46.35 township, provided that a project as recommended by the township
46.36 authority that is to be located within the corporate limits of a
47.1 city may not be commenced without the approval of the governing
47.2 body of the city. Minnesota Statutes, section 469.174,
47.3 subdivision 10, and the contiguity requirement specified under
47.4 Minnesota Statutes, section 469.101, subdivision 1, do not apply
47.5 to limit the areas that may be designated as township economic
47.6 development districts.
47.7 Subd. 3. [POWERS.] If an economic development authority is
47.8 established as provided in subdivision 1, the township may
47.9 exercise all of the powers relating to an economic development
47.10 authority granted to a city under Minnesota Statutes, sections
47.11 469.090 to 469.1081, or other law, including the power to levy a
47.12 tax to support the activities of the authority.
47.13 Subd. 4. [LOCAL APPROVAL.] This section is effective the
47.14 day after the town board of supervisors of Hassan township and
47.15 its chief clerical officer timely complete their compliance with
47.16 Minnesota Statutes, section 645.021, subdivisions 2 and 3.
47.17 Sec. 49. [REPEALER.]
47.18 (a) Minnesota Statutes 2000, sections 373.40, subdivision
47.19 7; and 474A.061, subdivision 6, are repealed.
47.20 (b) Minnesota Statutes 2000, section 376.03, is repealed.
47.21 Sec. 50. [EFFECTIVE DATE.]
47.22 Sections 13 to 42 are effective the day after final
47.23 enactment except that section 19, paragraph (c), is effective to
47.24 require submissions by December 31, 2002, and annually
47.25 thereafter.