as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to public finance; updating and making 1.3 technical changes to public finance provisions related 1.4 to debt obligations, sales and use tax exemptions, 1.5 county capital financing of certain equipment and 1.6 hardware and software; extending a sunset date for 1.7 certain county capital improvement bonds; removing 1.8 election requirements as preconditions for issuance of 1.9 certain obligations; authorizing some flexibility in 1.10 stating certain ballot questions; amending Minnesota 1.11 Statutes 2000, sections 103B.555, by adding a 1.12 subdivision; 165.10, subdivision 2; 275.60; 297A.70, 1.13 subdivisions 4 and 7; 297A.71, subdivision 6; 373.01, 1.14 subdivision 3; 373.40, subdivision 7; 373.45, 1.15 subdivision 3; 376.08, subdivisions 1, 3, and by 1.16 adding a subdivision; 410.32; 412.301; 426.19, 1.17 subdivision 2; 429.091, subdivision 7a; 444.075, 1.18 subdivision 1a; 475.54, subdivision 1; 475.58, 1.19 subdivision 1; and 475.59. 1.20 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.21 Section 1. Minnesota Statutes 2000, section 103B.555, is 1.22 amended by adding a subdivision to read: 1.23 Subd. 4. [DISTRICT OBLIGATIONS.] The district, with 1.24 approval of the county board or joint county authority, may 1.25 exercise the powers of a city under chapter 429 and section 1.26 444.075, including, but not limited to: 1.27 (1) the levy of special assessments; 1.28 (2) the imposition of rates and charges; and 1.29 (3) the issuance of bonds; 1.30 to finance improvements that the district may undertake. 1.31 Sec. 2. Minnesota Statutes 2000, section 165.10, 1.32 subdivision 2, is amended to read: 2.1 Subd. 2. [BONDS ISSUED, SOLD, AND RETIRED.] Such bonds 2.2 shall be general obligations of the county and issued, sold, and 2.3 retired in the manner provided in chapter 475. 2.4 Sec. 3. Minnesota Statutes 2000, section 275.60, is 2.5 amended to read: 2.6 275.60 [LEVY OR BOND REFERENDUM; BALLOT NOTICE.] 2.7 (a) Notwithstanding any general or special law or any 2.8 charter provisions, but subject to section 126C.17, subdivision 2.9 9, any question submitted to the voters by any local 2.10 governmental subdivision at a general or special election after 2.11 June 8, 1995, authorizing a property tax levy or tax rate 2.12 increase, including the issuance of debt obligations payable in 2.13 whole or in part from property taxes, must include on the ballot 2.14 the following notice in boldface type
.: 2.15 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING 2.16 FOR A PROPERTY TAX INCREASE." 2.17 (b) For purposes of this section and section 275.61, "local 2.18 governmental subdivision" includes counties, home rule and 2.19 statutory cities, towns, school districts, and all special 2.20 taxing districts. This statement is in addition to any general 2.21 or special laws or any charter provisions that govern the 2.22 contents of a ballot question and, in the case of a question on 2.23 the issuance of debt obligations, may be supplemented by a 2.24 description of revenues pledged to payment of the obligations 2.25 that are intended as the primary source of payment. 2.26 (c) This section does not apply to a school district bond 2.27 election if the debt service payments are to be made entirely 2.28 from transfers of revenue from the capital fund to the debt 2.29 service fund. 2.30 Sec. 4. Minnesota Statutes 2000, section 297A.70, 2.31 subdivision 4, is amended to read: 2.32 Subd. 4. [SALES TO NONPROFIT GROUPS.] (a) All sales, 2.33 except those listed in paragraph (b), to the following 2.34 "nonprofit organizations" are exempt: 2.35 (1) an entity organized and operated exclusively for 2.36 charitable, religious, or educational purposes if the item 3.1 purchased is used in the performance of charitable, religious, 3.2 or educational functions; 3.3 (2) any senior citizen group or association of groups that: 3.4 (i) in general limits membership to persons who are either 3.5 age 55 or older, or physically disabled; and 3.6 (ii) is organized and operated exclusively for pleasure, 3.7 recreation, and other nonprofit purposes, no part of the net 3.8 earnings of which inures to the benefit of any private 3.9 shareholders; and 3.10 (3) an entity organized and operated exclusively to 3.11 maintain a cemetery owned by a religious organization. 3.12 (b) This exemption does not apply to the following sales: 3.13 (1) building, construction, or reconstruction materials 3.14 purchased by a contractor or a subcontractor as a part of a 3.15 lump-sum contract or similar type of contract with a guaranteed 3.16 maximum price covering both labor and materials for use in the 3.17 construction, alteration, or repair of a building or facility; 3.18 (2) construction materials purchased by tax-exempt entities 3.19 or their contractors to be used in constructing buildings or 3.20 facilities that will not be used principally by the tax-exempt 3.21 entities; and 3.22 (3) meals and lodging as defined under section 297A.61, 3.23 subdivisions 3, paragraph (d), and 16, paragraph (c); and 3.24 (4) leasing of a motor vehicle as defined in section 3.25 297B.01, subdivision 5, except as provided in paragraph (c). 3.26 (c) This exemption applies to the leasing of a motor 3.27 vehicle as defined in section 297B.01, subdivision 5, only if 3.28 the vehicle is: 3.29 (1) a truck, as defined in section 168.011, a bus, as 3.30 defined in section 168.011, or a passenger automobile, as 3.31 defined in section 168.011, if the automobile is designed and 3.32 used for carrying more than nine persons including the driver; 3.33 and 3.34 (2) intended to be used primarily to transport tangible 3.35 personal property or individuals, other than employees, to whom 3.36 the organization provides service in performing its charitable, 4.1 religious, or educational purpose. 4.2 (d) For purposes of the exemption under this subdivision, a 4.3 sale to and use or consumption by a limited liability company 4.4 consisting of a sole member shall be treated as a sale to and 4.5 use or consumption by the sole member. 4.6 Sec. 5. Minnesota Statutes 2000, section 297A.70, 4.7 subdivision 7, is amended to read: 4.8 Subd. 7. [HOSPITALS AND OUTPATIENT SURGICAL CENTERS.] (a) 4.9 Sales, except for those listed in paragraph (c), to a hospital 4.10 are exempt, if the items purchased are used in providing 4.11 hospital services. For purposes of this subdivision, "hospital" 4.12 means a hospital organized and operated for charitable purposes 4.13 within the meaning of section 501(c)(3) of the Internal Revenue 4.14 Code, and licensed under chapter 144 or by any other 4.15 jurisdiction, and "hospital services" are services authorized or 4.16 required to be performed by a "hospital" under chapter 144. 4.17 (b) Sales, except for those listed in paragraph (c), to an 4.18 outpatient surgical center are exempt, if the items purchased 4.19 are used in providing outpatient surgical services. For 4.20 purposes of this subdivision, "outpatient surgical center" means 4.21 an outpatient surgical center organized and operated for 4.22 charitable purposes within the meaning of section 501(c)(3) of 4.23 the Internal Revenue Code, and licensed under chapter 144 or by 4.24 any other jurisdiction. For the purposes of this subdivision, 4.25 "outpatient surgical services" means: (1) services authorized 4.26 or required to be performed by an outpatient surgical center 4.27 under chapter 144 or under the applicable licensure law of any 4.28 other jurisdiction; and (2) urgent care. For purposes of this 4.29 subdivision, "urgent care" means health services furnished to a 4.30 person whose medical condition is sufficiently acute to require 4.31 treatment unavailable through, or inappropriate to be provided 4.32 by, a clinic or physician's office, but not so acute as to 4.33 require treatment in a hospital emergency room. 4.34 (c) This exemption does not apply to the following products 4.35 and services: 4.36 (1) purchases made by a clinic, physician's office, or any 5.1 other medical facility not operating as a hospital or outpatient 5.2 surgical center, even though the clinic, office, or facility may 5.3 be owned and operated by a hospital or outpatient surgical 5.4 center; 5.5 (2) sales under section 297A.61, subdivisions 3, paragraph 5.6 (d), and 16, paragraph (c); 5.7 (3) building and construction materials used in 5.8 constructing buildings or facilities that will not be used 5.9 principally by the hospital or outpatient surgical center; 5.10 (4) building, construction, or reconstruction materials 5.11 purchased by a contractor or a subcontractor as a part of a 5.12 lump-sum contract or similar type of contract with a guaranteed 5.13 maximum price covering both labor and materials for use in the 5.14 construction, alteration, or repair of a hospital or outpatient 5.15 surgical center; or 5.16 (5) the leasing of a motor vehicle as defined in section 5.17 297B.01, subdivision 5. 5.18 (d) For purposes of the exemption under this subdivision, a 5.19 sale to and use or consumption by a limited liability company 5.20 consisting of a sole member shall be treated as a sale to and 5.21 use or consumption by the sole member. 5.22 Sec. 6. Minnesota Statutes 2000, section 297A.71, 5.23 subdivision 6, is amended to read: 5.24 Subd. 6. [BUSINESS INCUBATOR AND INDUSTRIAL PARK.] 5.25 Building materials and supplies for construction of a facility 5.26 that includes a business incubator and industrial park are 5.27 exempt if the facility: 5.28 (1) is owned and operated by a nonprofit charitable 5.29 organization that qualifies for tax exemption under section 5.30 501(c)(3) of the Internal Revenue Code; 5.31 (2) is used for the development of nonretail businesses, 5.32 offering access to equipment, space, services, and advice to the 5.33 tenant businesses, for the purpose of encouraging economic 5.34 development and job creation in the area served by the 5.35 organization, and emphasizes development of businesses that 5.36 manufacture products from materials found in the waste stream, 6.1 or manufacture alternative energy and conservation systems, or 6.2 make use of emerging environmental technologies; 6.3 (3) includes in its structure systems of material and 6.4 energy exchanges that use waste products from one industrial 6.5 process as sources of energy and material for other processes; 6.6 and 6.7 (4) makes use of solar and wind energy technology and 6.8 incorporates salvaged materials in its construction. 6.9 For purposes of the exemption under this subdivision, a 6.10 sale to and use or consumption by a limited liability company 6.11 consisting of a sole member shall be treated as a sale to and 6.12 use or consumption by the sole member. 6.13 Sec. 7. Minnesota Statutes 2000, section 373.01, 6.14 subdivision 3, is amended to read: 6.15 Subd. 3. [CAPITAL NOTES.] A county board may, by 6.16 resolution and without referendum, issue capital notes subject 6.17 to the county debt limit to purchase capital equipment useful 6.18 for county purposes that has an expected useful life at least 6.19 equal to the term of the notes. The notes shall be payable in 6.20 not more than five years and shall be issued on terms and in a 6.21 manner the board determines. A tax levy shall be made for 6.22 payment of the principal and interest on the notes, in 6.23 accordance with section 475.61, as in the case of bonds. For 6.24 purposes of this subdivision, "capital equipment" means public 6.25 safety, ambulance, road construction or maintenance, medical, 6.26 and data processing equipment and computer hardware and software. 6.27 Sec. 8. Minnesota Statutes 2000, section 373.40, 6.28 subdivision 7, is amended to read: 6.29 Subd. 7. [REPEALER.] This section is repealed effective 6.30 for bonds issued after July 1, 20032006, but continues to apply 6.31 to bonds issued before that date. 6.32 Sec. 9. Minnesota Statutes 2000, section 373.45, 6.33 subdivision 3, is amended to read: 6.34 Subd. 3. [AGREEMENT.] (a) In orderFor specified debt 6.35 obligations of a county to be covered by the provisions ofthis 6.36 section, the county must enter an agreement with the authority 7.1 obligating the county to be bound by the provisions ofthis 7.2 section. 7.3 (b) This agreement must be in a form prescribed by the 7.4 authority and contain any provisions required by the authority, 7.5 including, at least, an obligation to: 7.6 (1) deposit with the paying agent three days before the 7.7 date on which the payment is due an amount sufficient to make 7.8 that payment; 7.9 (2) notify the authority, if the county will be unable to 7.10 make all or a portion of the payment; and 7.11 (3) include a provision in the bond resolution and county's 7.12 agreement with the paying agent for the debt obligation that 7.13 requires the paying agent to inform the commissioner if it 7.14 becomes aware of a default or potential default in the payment 7.15 of principal or interest on that issue or if, on the day two 7.16 business days before the date a payment is due on that issue, 7.17 there are insufficient funds to make the payment on deposit with 7.18 the paying agent. 7.19 (c) Funds invested in a refunding escrow account 7.20 established under section 475.67 that are to become available to 7.21 the paying agent on a principal or interest payment date are 7.22 deemed to be on deposit with the paying agent three business 7.23 days before the payment date. 7.24 (b)(d) The provisions of an agreement under this 7.25 subdivision are binding as to an issue as long as any debt 7.26 obligation of the issue remains outstanding. 7.27 (c)(e) This section is a contract with bondholders and may7.28 not be amended or repealed for the covered bonds so long as the7.29 covered bonds are outstandingand the obligations of the state 7.30 under this section are not a public debt of the state under 7.31 article XI, section 4, of the Minnesota Constitution, and the 7.32 legislature may, at any time, choose not to appropriate amounts 7.33 under subdivision 4, paragraph (b). 7.34 Sec. 10. Minnesota Statutes 2000, section 376.08, 7.35 subdivision 1, is amended to read: 7.36 Subdivision 1. [APPROPRIATIONS.] Except as provided in 8.1 subdivisionsubdivisions 2 and 4, the board of county 8.2 commissioners in any county with a population of 50,000 or less 8.3 may appropriate up to $65,000 annually from the general revenue 8.4 fund of the county for the acquisition of lands for hospital 8.5 purposes, and the construction, improvement, alterations, 8.6 equipment and maintenance of hospitals within the county. The 8.7 board may also appropriate up to $25,000 from the general 8.8 revenue fund of the county for the acquisition of land and 8.9 construction of municipally owned nursing homes within the 8.10 county. 8.11 Sec. 11. Minnesota Statutes 2000, section 376.08, 8.12 subdivision 3, is amended to read: 8.13 Subd. 3. [LIMITATION ON HOSPITAL CAPACITY.] Section 8.14 144.551 applies to any project authorized by subdivision 2 or 4. 8.15 SubdivisionSubdivisions 2 doesand 4 do not authorize an 8.16 increase in the license capacity of the hospital or the 8.17 licensing, relocation, or redistribution of hospital beds except 8.18 as provided by section 144.551, subdivision 1, paragraph (b). 8.19 Sec. 12. Minnesota Statutes 2000, section 376.08, is 8.20 amended by adding a subdivision to read: 8.21 Subd. 4. [NO ELECTION FOR EXPENDITURE OF CERTAIN BOND 8.22 PROCEEDS.] Notwithstanding section 376.03, a county may by vote 8.23 of the majority of the board of county commissioners acquire, 8.24 construct, remodel, renovate, and equip hospital facilities to 8.25 the extent of money derived from general obligation bonds 8.26 authorized for that purpose by an election under section 475.58, 8.27 capital improvement bonds issued under a capital improvement 8.28 plan approved in accordance with section 373.40, or revenue 8.29 bonds issued under sections 447.45 to 447.50. 8.30 Sec. 13. Minnesota Statutes 2000, section 410.32, is 8.31 amended to read: 8.32 410.32 [CITIES AUTHORIZED TO ISSUE CAPITAL NOTES FOR 8.33 CERTAIN EQUIPMENT ACQUISITIONS.] 8.34 Notwithstanding any contrary provision of other law or 8.35 charter, a home rule charter city may, by resolution and without 8.36 public referendum, issue capital notes subject to the city debt 9.1 limit to purchase public safety equipment, ambulance and other 9.2 medical equipment, road construction and maintenance equipment, 9.3 and other capital equipment havingand computer software, if the 9.4 capital equipment and computer software has an expected useful 9.5 life at least as long as the term of the notes. The notes shall 9.6 be payable in not more than five years and be issued on terms 9.7 and in the manner the city determines. The total principal 9.8 amount of the capital notes issued in a fiscal year shall not 9.9 exceed 0.03 percent of the market value of taxable property in 9.10 the city for that year. A tax levy shall be made for the 9.11 payment of the principal and interest on the notes, in 9.12 accordance with section 475.61, as in the case of bonds. Notes 9.13 issued under this section shall require an affirmative vote of 9.14 two-thirds of the governing body of the city. Notwithstanding a 9.15 contrary provision of other law or charter, a home rule charter 9.16 city may also issue capital notes subject to its debt limit in 9.17 the manner and subject to the limitations applicable to 9.18 statutory cities pursuant to section 412.301. 9.19 Sec. 14. Minnesota Statutes 2000, section 412.301, is 9.20 amended to read: 9.21 412.301 [FINANCING PURCHASE OF CERTAIN EQUIPMENT.] 9.22 The council may issue certificates of indebtedness or 9.23 capital notes subject to the city debt limits to purchase public 9.24 safety equipment, ambulance equipment, road construction or 9.25 maintenance equipment, and other capital equipment havingand 9.26 computer software, if the capital equipment and computer 9.27 software has an expected useful life at least as long as the 9.28 terms of the certificates or notes. Such certificates or notes 9.29 shall be payable in not more than five years and shall be issued 9.30 on such terms and in such manner as the council may determine. 9.31 If the amount of the certificates or notes to be issued to 9.32 finance any such purchase exceeds 0.25 percent of the market 9.33 value of taxable property in the city, they shall not be issued 9.34 for at least ten days after publication in the official 9.35 newspaper of a council resolution determining to issue them; and 9.36 if before the end of that time, a petition asking for an 10.1 election on the proposition signed by voters equal to ten 10.2 percent of the number of voters at the last regular municipal 10.3 election is filed with the clerk, such certificates or notes 10.4 shall not be issued until the proposition of their issuance has 10.5 been approved by a majority of the votes cast on the question at 10.6 a regular or special election. A tax levy shall be made for the 10.7 payment of the principal and interest on such certificates or 10.8 notes, in accordance with section 475.61, as in the case of 10.9 bonds. 10.10 Sec. 15. Minnesota Statutes 2000, section 426.19, 10.11 subdivision 2, is amended to read: 10.12 Subd. 2. [REFERENDUM IN CERTAIN CASES.] Before the pledge10.13 of any such revenues to the payment of any such bonds, warrants10.14 or certificates of indebtedness, except bonds, warrants or10.15 certificates of indebtedness to construct, reconstruct, enlarge10.16 or equip a municipal liquor store shall be made, the governing10.17 body shall submit to the voters of the city the question of10.18 whether such revenues shall be so pledged and such pledge shall10.19 not be binding on the city until it shall have been approved by10.20 a majority of the voters voting on the question at either a10.21 general election or special election called for that purpose.10.22 No election shall be required for pledge of such revenues for 10.23 payment of bonds, warrants or certificates of indebtedness to 10.24 construct, reconstruct, enlarge, or equip a municipal liquor 10.25 store, or for the other purposes described in subdivision 1. 10.26 Sec. 16. Minnesota Statutes 2000, section 429.091, 10.27 subdivision 7a, is amended to read: 10.28 Subd. 7a. [REVOLVING FUND BONDS.] The council may by 10.29 resolution establish a revolving fund for the payment of the 10.30 costs of any improvement or any waterworks systems, sewer 10.31 systems, or storm sewer systems described in section 444.075, 10.32 the costs of facilities to maintain streets and water, sewer, 10.33 and storm sewer systems and for the payment of any obligations 10.34 issued to pay the costs thereofof the facilities and systems 10.35 referred to in this subdivision or to refund obligations issued 10.36 for those purposes. The council may create within the revolving 11.1 fund a separate construction account into which the municipality 11.2 may deposit the proceeds of any obligations payable from the 11.3 fund, the proceeds of any special assessments collected with 11.4 respect to any improvement, any net revenues of a waterworks, 11.5 sewer system, or storm sewer system described in section 444.075 11.6 or any other available funds of the municipality appropriated to 11.7 it. Amounts on deposit in the construction account may be used 11.8 to pay the costs of any improvement or any waterworks, sewer 11.9 system, or storm sewer system described in section 444.075 or 11.10 any street or water, sewer, or storm sewer maintenance 11.11 facilities. No funds may be expended for an improvement unless 11.12 at least 20 percent of the costs of each such improvement is to 11.13 be assessed against benefited property. No funds may be 11.14 expended for a waterworks, sewer system, or storm sewer system, 11.15 other than a sewer system described in section 115.46, or 11.16 maintenance facilities unless the council estimates that the 11.17 costs will be recovered from the net revenues of the system or 11.18 any combined waterworks, sewer systems, or storm sewer systems 11.19 operated by the municipality. The council may also create a 11.20 separate debt service account within the revolving fund for the 11.21 payment of principal of and interest on any obligations payable 11.22 therefrom. Notwithstanding subdivision 4, the council is not 11.23 required to pledge any particular assessments or other revenues 11.24 to the payment of the obligations. Collections of special 11.25 assessments or net revenues may be deposited in either the 11.26 construction account or the debt service account as the council 11.27 or an officer designated by the council may determine, having 11.28 due regard for anticipated collections of special assessments 11.29 and net revenues from improvements or waterworks, sewer systems, 11.30 or storm sewer systems financed in whole or in part from the 11.31 construction account, and taxes levied for the payment of the 11.32 obligations. The council may issue obligations that are payable 11.33 primarily from the debt service account for the purpose of 11.34 providing funds to defray in whole or in part any expenses 11.35 incurred or estimated to be incurred in making the improvement 11.36 or improvements or in constructing the waterworks, sewer system, 12.1 or storm sewer system, including every item of cost of the kinds 12.2 authorized by section 475.65, and street and water, sewer, and 12.3 storm sewer maintenance facilities or to refund obligations 12.4 previously issued under this section or section 115.46 or 12.5 444.075. The obligations may be general obligations to which 12.6 the full faith and credit of the municipality are pledged. If 12.7 the special assessments to be levied and net revenues estimated 12.8 to be available for their payment are estimated to be at least 12.9 20 percent of the principal amount of the obligations, the 12.10 obligations may be issued without an election and shall not be 12.11 included in determining the net indebtedness of the municipality 12.12 under the provisions of any law limiting net indebtedness. 12.13 Sec. 17. Minnesota Statutes 2000, section 444.075, 12.14 subdivision 1a, is amended to read: 12.15 Subd. 1a. [AUTHORIZATION.] Any municipality may build, 12.16 construct, reconstruct, repair, enlarge, improve, or in any 12.17 other manner obtain 12.18 (i) waterworks systems, including mains, valves, hydrants, 12.19 service connections, wells, pumps, reservoirs, tanks, treatment 12.20 plants, and other appurtenances of a waterworks system, 12.21 (ii) sewer systems, sewage treatment works, disposal 12.22 systems, and other facilities for disposing of sewage, 12.23 industrial waste, or other wastes, and12.24 (iii) storm sewer systems, including mains, holding areas 12.25 and ponds, and other appurtenances and related facilities for 12.26 the collection and disposal of storm water, and 12.27 (iv) gas and electric systems including facilities for the 12.28 generation, transmission, and distribution of gas and electric 12.29 energy, 12.30 all hereinaftercalled facilities in this section, and maintain 12.31 and operate the facilities inside or outside its corporate 12.32 limits, and acquire by gift, purchase, lease, condemnation, or 12.33 otherwise any and all land and easements required for that 12.34 purpose. The authority hereby granted is in addition to all 12.35 other powers with reference to the facilities otherwise granted 12.36 by the laws of this state or by the charter of any 13.1 municipality. The authority granted in clause (iii) to 13.2 municipalities which have territory within a watershed which has 13.3 adopted a watershed plan pursuant to section 103B.231 shall be 13.4 exercised, with respect to facilities acquired following the 13.5 adoption of the watershed plan, only for facilities which are 13.6 not inconsistent with the watershed plan. The authority granted 13.7 in clause (iii) to municipalities which have adopted local water 13.8 management plans pursuant to section 103B.235 shall be 13.9 exercised, with respect to facilities acquired following the 13.10 adoption of a local plan, only for facilities which are not 13.11 inconsistent with the local plan. Counties, except counties in 13.12 the seven-county metropolitan area, shall have the same 13.13 authority granted to municipalities by this subdivision except 13.14 for areas of the county organized into cities and areas of the 13.15 county incorporated within a sanitary district established by 13.16 special act of the legislature. 13.17 Sec. 18. Minnesota Statutes 2000, section 475.54, 13.18 subdivision 1, is amended to read: 13.19 Subdivision 1. [IN INSTALLMENTS; EXCEPTION; ANNUAL LIMIT.] 13.20 Except as provided in subdivision 3, 5a, 15, or 17, or as 13.21 expressly authorized in another law, all obligations of each 13.22 issue shall mature or be subject to mandatory sinking fund 13.23 redemption in installments, the first not later than three years 13.24 and the last not later than 30 years from the date of the issue; 13.25 or 40 years or the useful life of the asset, whichever is less, 13.26 for municipal water and wastewater treatment systems and 13.27 essential community facilities financed or guaranteed by the 13.28 United States Department of Agriculture. No amount of principal 13.29 of the issue payable in any calendar year shall exceed five13.30 times thean amount ofequal to the smallest amount payable in 13.31 any preceding calendar year ending three years or more after the 13.32 issue date multiplied: 13.33 (1) by five, in the case of obligations maturing not later 13.34 than 25 years from the date of issue; and 13.35 (2) by six, in the case of obligations maturing 25 years or 13.36 later from the date of issue. 14.1 Sec. 19. Minnesota Statutes 2000, section 475.58, 14.2 subdivision 1, is amended to read: 14.3 Subdivision 1. [APPROVAL BY ELECTORS; EXCEPTIONS.] 14.4 Obligations authorized by law or charter may be issued by any 14.5 municipality upon obtaining the approval of a majority of the 14.6 electors voting on the question of issuing the obligations, but 14.7 an election shall not be required to authorize obligations 14.8 issued: 14.9 (1) to pay any unpaid judgment against the municipality; 14.10 (2) for refunding obligations; 14.11 (3) for an improvement or improvement program, which 14.12 obligation is payable wholly or partly from the proceeds of 14.13 special assessments levied upon property specially benefited by 14.14 the improvement or by an improvement within the improvement 14.15 program, or of taxes levied upon the increased value of property 14.16 within a district for the development of which the improvement 14.17 is undertaken, including obligations which are the general 14.18 obligations of the municipality, if the municipality is entitled 14.19 to reimbursement in whole or in part from the proceeds of such 14.20 special assessments or taxes and not less than 20 percent of the 14.21 cost of the improvement or the improvement program is to be 14.22 assessed against benefited property or is to be paid from the 14.23 proceeds of federal grant funds or a combination thereof, or is 14.24 estimated to be received from such taxes within the district; 14.25 (4) payable wholly from the income of revenue producing 14.26 conveniences; 14.27 (5) under the provisions of a home rule charter which 14.28 permits the issuance of obligations of the municipality without 14.29 election; 14.30 (6) under the provisions of a law which permits the 14.31 issuance of obligations of a municipality without an election; 14.32 (7) to fund pension or retirement fund liabilities pursuant 14.33 to section 475.52, subdivision 6; 14.34 (8) under a capital improvement plan under section 373.40; 14.35 (9) to fund facilities as provided in subdivision 3; and14.36 (10)under sections 469.1813 to 469.1815 (property tax 15.1 abatement authority bonds); and 15.2 (10) to pay for reconstruction of streets if special 15.3 assessments were levied to pay all or part of the initial costs 15.4 of the streets. 15.5 Sec. 20. Minnesota Statutes 2000, section 475.59, is 15.6 amended to read: 15.7 475.59 [MANNER OF SUBMISSION; NOTICE.] 15.8 When the governing body of a municipality resolves to issue 15.9 bonds for any purpose requiring the approval of the electors, it 15.10 shall provide for submission of the proposition of their 15.11 issuance at a general or special election or town or school 15.12 district meeting. Notice of such election or meeting shall be 15.13 given in the manner required by law and shall state the maximum 15.14 amount and the purpose of the proposed issue. In any school 15.15 district, the school board or board of education may, according 15.16 to its judgment and discretion, submit as a single ballot 15.17 question or as two or more separate questions in the notice of 15.18 election and ballots the proposition of their issuance for any 15.19 one or more of the following, stated conjunctively or in the 15.20 alternative: acquisition or enlargement of sites, acquisition, 15.21 betterment, erection, furnishing, equipping of one or more new 15.22 schoolhouses, remodeling, repairing, improving, adding to, 15.23 betterment, furnishing, equipping of one or more existing 15.24 schoolhouses. In any city, town, or county, the governing body 15.25 may, according to its judgment and discretion, submit as a 15.26 single ballot question or as two or more separate questions in 15.27 the notice of election and ballots the proposition of their 15.28 issuance, stated conjunctively or in the alternative, for the 15.29 acquisition, construction, or improvement of any facilities at 15.30 one or more locations. 15.31 Sec. 21. [EFFECTIVE DATE.] 15.32 This act is effective the day following its final enactment 15.33 except that sections 4, 5, and 6 are effective for sales and 15.34 purchases after June 30, 2001.