{\rtf1\ansi\deff0{\fonttbl{\f0 Times New Roman;}}\margl480\margr0\margt0\margb0\fs20\n\line \line\n\line \line\n\line \line\n\line {\pard\n\line \n\line \n\line 1.1 CONFERENCE COMMITTEE REPORT ON S.F. NO. 2208 \n\line 1.2 A bill for an act \n\line 1.3 relating to public finance; updating and making \n\line 1.4 technical changes to public finance provisions related \n\line 1.5 to debt obligations, financing of certain equipment \n\line 1.6 and hardware and software; removing election \n\line 1.7 requirements for issuance of certain obligations; \n\line 1.8 authorizing flexibility in stating certain ballot \n\line 1.9 questions; updating and changing the Minnesota Bond \n\line 1.10 Allocation Act; providing for the powers of housing \n\line 1.11 and redevelopment authorities in Scott county and \n\line 1.12 Carver county; authorizing issuance of certain \n\line 1.13 obligations by the city of St. Paul; clarifying an \n\line 1.14 appropriation; amending Minnesota Statutes 2000, \n\line 1.15 sections 103B.555, by adding a subdivision; 165.10, \n\line 1.16 subdivision 2; 275.60; 373.01, subdivision 3; 373.45, \n\line 1.17 subdivision 3; 376.08, subdivisions 1, 3, by adding a \n\line 1.18 subdivision; 410.32; 412.301; 429.091, subdivision 7a; \n\line 1.19 474A.02, subdivisions 8, 13a, 22a, 22b, 23a; 474A.03, \n\line 1.20 subdivisions 1, 2a, 4; 474A.04, subdivisions 1a, 5; \n\line 1.21 474A.045; 474A.047, subdivisions 1, 2; 474A.061, \n\line 1.22 subdivisions 1, 2a, 2b, 2c, 4; 474A.091, subdivisions \n\line 1.23 2, 3, 4, 5, 6, by adding a subdivision; 474A.131, \n\line 1.24 subdivisions 1, 2, by adding a subdivision; 474A.14; \n\line 1.25 475.54, subdivision 1; 475.58, subdivision 1; 475.59; \n\line 1.26 Laws 1974, chapter 473; Laws 1980, chapter 482; \n\line 1.27 proposing coding for new law in Minnesota Statutes, \n\line 1.28 chapter 474A; repealing Minnesota Statutes 2000, \n\line 1.29 section 474A.061, subdivision 6. \n\line 1.30 May 21, 2001\n\line 1.31 The Honorable Don Samuelson \n\line 1.32 President of the Senate\n\line 1.34 The Honorable Steve Sviggum \n\line 1.35 Speaker of the House of Representatives\n\line 1.37 We, the undersigned conferees for S.F. No. 2208, report \n\line 1.38 that we have agreed upon the items in dispute and recommend as \n\line 1.39 follows: \n\line 1.40 \n\line 2.1 That the House recede from its amendments and that S.F. No. \n\line 2.2 2208 be further amended as follows: \n\line 2.3 Delete everything after the enacting clause and insert: \n\line 2.4 "Section 1. Minnesota Statutes 2000, section 103B.555, is \n\line 2.5 amended by adding a subdivision to read: \n\line 2.6 {\ul Subd. 4.} [DISTRICT OBLIGATIONS.] {\ul The district, with} \n\line 2.7 {\ul approval of the county board or joint county authority,} \n\line 2.8 {\ul expressed in a resolution identifying each specific improvement} \n\line 2.9 {\ul to which the approval applies, may exercise the powers of a city} \n\line 2.10 {\ul under chapter 429 and section 444.075, including, but not} \n\line 2.11 {\ul limited to:} \n\line 2.12 {\ul (1) the levy of special assessments;} \n\line 2.13 {\ul (2) the imposition of rates and charges; and} \n\line 2.14 {\ul (3) the issuance of bonds} \n\line 2.15 {\ul to finance improvements that the district may undertake.} \n\line 2.16 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 2.17 {\ul following final enactment.} \n\line 2.18 Sec. 2. Minnesota Statutes 2000, section 165.10, \n\line 2.19 subdivision 2, is amended to read: \n\line 2.20 Subd. 2. [BONDS ISSUED, SOLD{\ul ,} AND RETIRED.] Such bonds \n\line 2.21 shall be {\ul general obligations of the county and} issued, sold{\ul ,} and \n\line 2.22 retired in the manner provided in chapter 475. \n\line 2.23 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 2.24 {\ul following final enactment.} \n\line 2.25 Sec. 3. Minnesota Statutes 2000, section 275.60, is \n\line 2.26 amended to read: \n\line 2.27 275.60 [LEVY OR BOND REFERENDUM; BALLOT NOTICE.] \n\line 2.28 {\ul (a)} Notwithstanding any general or special law or any \n\line 2.29 charter provisions, but subject to section 126C.17, subdivision \n\line 2.30 9, any question submitted to the voters by any local \n\line 2.31 governmental subdivision at a general or special election after \n\line 2.32 June 8, 1995, authorizing a property tax levy or tax rate \n\line 2.33 increase, including the issuance of debt obligations payable in \n\line 2.34 whole or in part from property taxes, must include on the ballot \n\line 2.35 the following notice in boldface type{\strike .}{\ul :} \n\line 2.36 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING \n\line 3.1 FOR A PROPERTY TAX INCREASE." \n\line 3.2 {\ul (b)} For purposes of this section and section 275.61, "local \n\line 3.3 governmental subdivision" includes counties, home rule and \n\line 3.4 statutory cities, towns, school districts, and all special \n\line 3.5 taxing districts. This statement is in addition to any general \n\line 3.6 or special laws or any charter provisions that govern the \n\line 3.7 contents of a ballot question {\ul and, in the case of a question on} \n\line 3.8 {\ul the issuance of debt obligations, may be supplemented by a} \n\line 3.9 {\ul description of revenues pledged to payment of the obligations} \n\line 3.10 {\ul that are intended as the primary source of payment}. \n\line 3.11 {\ul (c)} This section does not apply to a school district bond \n\line 3.12 election if the debt service payments are to be made entirely \n\line 3.13 from transfers of revenue from the capital fund to the debt \n\line 3.14 service fund. \n\line 3.15 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 3.16 {\ul following final enactment.} \n\line 3.17 Sec. 4. Minnesota Statutes 2000, section 373.45, \n\line 3.18 subdivision 3, is amended to read: \n\line 3.19 Subd. 3. [AGREEMENT.] (a) {\strike In order} For specified debt \n\line 3.20 obligations of a county to be covered by {\strike the provisions of} this \n\line 3.21 section, the county must enter an agreement with the authority \n\line 3.22 obligating the county to be bound by {\strike the provisions of} this \n\line 3.23 section. \n\line 3.24 {\ul (b)} This agreement must be in a form prescribed by the \n\line 3.25 authority and contain any provisions required by the authority, \n\line 3.26 including{\ul ,} at least{\ul ,} an obligation to: \n\line 3.27 (1) deposit with the paying agent three days before the \n\line 3.28 date on which the payment is due an amount sufficient to make \n\line 3.29 that payment; \n\line 3.30 (2) notify the authority, if the county will be unable to \n\line 3.31 make all or a portion of the payment; and \n\line 3.32 (3) include a provision in the bond resolution and county's \n\line 3.33 agreement with the paying agent for the debt obligation that \n\line 3.34 requires the paying agent to inform the commissioner if it \n\line 3.35 becomes aware of a default or potential default in the payment \n\line 3.36 of principal or interest on that issue or if, on the day two \n\line 4.1 business days before the date a payment is due on that issue, \n\line 4.2 there are insufficient funds to make the payment on deposit with \n\line 4.3 the paying agent. \n\line 4.4 {\ul (c)} Funds invested in a refunding escrow account \n\line 4.5 established under section 475.67 that are to become available to \n\line 4.6 the paying agent on a principal or interest payment date are \n\line 4.7 deemed to be on deposit with the paying agent three business \n\line 4.8 days before the payment date. \n\line 4.9 {\strike (b)} {\ul (d)} The provisions of an agreement under this \n\line 4.10 subdivision are binding as to an issue as long as any debt \n\line 4.11 obligation of the issue remains outstanding. \n\line 4.12 {\strike (c)} {\ul (e)} This section {\strike is a contract with bondholders and may} \n\line 4.13 {\strike not be amended or repealed for the covered bonds so long as the} \n\line 4.14 {\strike covered bonds are outstanding} {\ul and the obligations of the state} \n\line 4.15 {\ul under this section are not a public debt of the state under} \n\line 4.16 {\ul article XI, section 4, of the Minnesota Constitution, and the} \n\line 4.17 {\ul legislature may, at any time, choose not to appropriate amounts} \n\line 4.18 {\ul under subdivision 4, paragraph (b)}. \n\line 4.19 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 4.20 {\ul following final enactment.} \n\line 4.21 Sec. 5. Minnesota Statutes 2000, section 376.06, \n\line 4.22 subdivision 1, is amended to read: \n\line 4.23 Subdivision 1. [PROCEDURE, POWERS, PAY, ELECTION.] A \n\line 4.24 county board which has purchased and constructed buildings for \n\line 4.25 hospital purposes may operate these buildings as a hospital and \n\line 4.26 may appoint a superintendent. The board shall set the \n\line 4.27 superintendent's salary, term of employment, and powers and \n\line 4.28 duties; provide for the management and operation of the \n\line 4.29 hospital; and operate, control, and manage the hospital. The \n\line 4.30 superintendent shall serve at the pleasure of the board. If the \n\line 4.31 board determines that it is in the public interest, it may \n\line 4.32 appoint a hospital board of at least three, but not more than \n\line 4.33 nine members, who {\strike must be county residents and landowners, to} \n\line 4.34 {\strike serve} {\ul may include some or all of the county commissioners except} \n\line 4.35 {\ul as otherwise provided in subdivision 2. Persons appointed to} \n\line 4.36 {\ul the hospital board must reside in the hospital's service area} \n\line 5.1 {\ul and 80 percent of the board members, including any commissioners} \n\line 5.2 {\ul appointed to serve on the hospital board, must be residents of} \n\line 5.3 {\ul the county. The hospital board serves} without compensation \n\line 5.4 unless the county board authorizes the payment of compensation \n\line 5.5 and reimbursement of expenses for service on the hospital \n\line 5.6 board. Notwithstanding section 375.44, if compensation and \n\line 5.7 reimbursement are authorized, they shall be the same as \n\line 5.8 authorized for service on the local social services agency. \n\line 5.9 Subject to its supervision, the county board may commit the \n\line 5.10 care, management, and operation of the hospital to the hospital \n\line 5.11 board. The county board may provide for the organization and \n\line 5.12 regulation of the hospital board, its duties and the duties of \n\line 5.13 the members, and regulations for the management, operation, and \n\line 5.14 control of the hospital. The county board may lease the \n\line 5.15 hospital grounds and buildings to a {\strike hospital association} \n\line 5.16 {\ul nonprofit or governmental hospital organization} for terms it \n\line 5.17 considers advisable. {\strike Sections 376.01 to 376.06 do not permit} \n\line 5.18 {\strike any county board to purchase and construct any hospital} \n\line 5.19 {\strike buildings or to pay for them without first submitting the} \n\line 5.20 {\strike question to the vote of the people. No purchase or construction} \n\line 5.21 {\strike of buildings or payment may be made unless a majority of the} \n\line 5.22 {\strike electors voting upon the proposition vote in favor.} \n\line 5.23 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 5.24 {\ul following final enactment.} \n\line 5.25 Sec. 6. Minnesota Statutes 2000, section 376.07, is \n\line 5.26 amended to read: \n\line 5.27 376.07 [ADDITION TO COUNTY HOSPITAL.] \n\line 5.28 {\strike When the county board of a county has been authorized by} \n\line 5.29 {\strike the voters to construct an addition to the county hospital of} \n\line 5.30 {\strike the county under sections 376.01 to 376.06, whether or not also} \n\line 5.31 {\strike authorized to equip the addition, and the board has determined} \n\line 5.32 {\strike that the addition, whether with or without equipment, cannot be} \n\line 5.33 {\strike completed within the cost authorized, or has determined that, to} \n\line 5.34 {\strike complete the improvement, certain alterations should be made, or} \n\line 5.35 {\strike fixtures or equipment added, either in the original building, or} \n\line 5.36 {\strike in the addition, or both, the board may be authorized to spend a} \n\line 6.1 {\strike specified additional amount for any of the purposes mentioned in} \n\line 6.2 {\strike this chapter, either by vote of the people of the county at a} \n\line 6.3 {\strike general or special election or by petition. If an election is} \n\line 6.4 {\strike held, the proposition shall be submitted and disposed of in the} \n\line 6.5 {\strike same manner as provided by sections 376.01 to 376.06. If by} \n\line 6.6 {\strike petition, the petition must be signed by a majority of those} \n\line 6.7 {\strike voting at the last preceding general election. The petition may} \n\line 6.8 {\strike be in the form of one document or of several documents in the} \n\line 6.9 {\strike same form, and shall be filed with the county auditor. A} \n\line 6.10 {\strike special election may be called in the manner provided for} \n\line 6.11 {\strike calling special county elections. When authority is granted by} \n\line 6.12 {\strike the voters, in either manner provided, the board may proceed} \n\line 6.13 {\strike accordingly. If the board made or attempted to make a contract} \n\line 6.14 {\strike or contracts for more than the authority first granted, it may} \n\line 6.15 {\strike ratify and carry out the contracts.} {\ul The county board, hospital} \n\line 6.16 {\ul board, or board of directors of a nonprofit or governmental} \n\line 6.17 {\ul hospital organization that has leased a county hospital may} \n\line 6.18 {\ul authorize the remodeling, improvement, alteration, or} \n\line 6.19 {\ul construction of an addition to the county hospital or of another} \n\line 6.20 {\ul building on the county hospital's existing premises by a} \n\line 6.21 {\ul majority vote of the board. Financing for any project under} \n\line 6.22 {\ul this section is governed by other law, including sections 373.40} \n\line 6.23 {\ul and 447.45 and chapter 475.} \n\line 6.24 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 6.25 {\ul following final enactment.} \n\line 6.26 Sec. 7. Minnesota Statutes 2000, section 376.08, \n\line 6.27 subdivision 1, is amended to read: \n\line 6.28 Subdivision 1. [APPROPRIATIONS.] Except as provided in \n\line 6.29 subdivision 2, the board of county commissioners in any county \n\line 6.30 with a population of 50,000 or less may appropriate up to \n\line 6.31 $65,000 annually from the general revenue fund of the county for \n\line 6.32 the acquisition of lands for hospital purposes, and the \n\line 6.33 construction, improvement, alterations, equipment and \n\line 6.34 maintenance of hospitals within the county{\ul , including public or} \n\line 6.35 {\ul nonprofit hospitals that are not county hospitals}. The board \n\line 6.36 may also appropriate up to $25,000 from the general revenue fund \n\line 7.1 of the county for the acquisition of land and construction of \n\line 7.2 municipally owned nursing homes within the county. \n\line 7.3 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 7.4 {\ul following final enactment.} \n\line 7.5 Sec. 8. Minnesota Statutes 2000, section 376.08, \n\line 7.6 subdivision 2, is amended to read: \n\line 7.7 Subd. 2. [REMODELING OR ADDITIONS.] A county hospital may \n\line 7.8 by majority vote of its board of commissioners{\ul , or if the} \n\line 7.9 {\ul hospital has been leased to another entity under section 376.06,} \n\line 7.10 {\ul subdivision 1, or 447.47, by majority vote of the board of} \n\line 7.11 {\ul directors of that entity,} enter into projects for the \n\line 7.12 construction of an addition or remodeling to its presently \n\line 7.13 existing facility or the acquisition of equipment as described \n\line 7.14 in this subdivision without complying with the dollar limitation \n\line 7.15 of subdivision 1 or the election requirements of section \n\line 7.16 376.03. This subdivision applies {\strike only} to projects in which the \n\line 7.17 funds for the project are derived from dedicated, restricted, or \n\line 7.18 other designated accounts {\strike or}{\ul , from} the hospital's depreciation \n\line 7.19 fund {\strike and do not require incurring debt by the county through}{\ul , or} \n\line 7.20 {\ul from} the issuance of bonds {\strike or otherwise} {\ul authorized under other} \n\line 7.21 {\ul law}. An addition to a current hospital under this subdivision \n\line 7.22 may include construction of buildings physically separate from \n\line 7.23 the present hospital building, as well as additions to the \n\line 7.24 present building, if the new buildings are constructed on the \n\line 7.25 hospital's existing premises. \n\line 7.26 This subdivision does not affect the ability of the \n\line 7.27 hospital board to approve funds for improvements or remodeling \n\line 7.28 of a hospital facility under other law. \n\line 7.29 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 7.30 {\ul following final enactment.} \n\line 7.31 Sec. 9. Minnesota Statutes 2000, section 376.09, is \n\line 7.32 amended to read: \n\line 7.33 376.09 [AID TO HOSPITALS IN COUNTIES HAVING NO COUNTY \n\line 7.34 HOSPITAL.] \n\line 7.35 In any county in which there is no county hospital, {\ul or a} \n\line 7.36 {\ul county hospital is leased to a nonprofit or governmental} \n\line 8.1 {\ul hospital organization pursuant to section 376.06, subdivision 1,} \n\line 8.2 {\ul or 447.47,} the county board may appropriate and pay money from \n\line 8.3 the general fund of the county, for the construction, \n\line 8.4 maintenance, and operation of a private, nonprofit, or public \n\line 8.5 hospital in the county for the treatment of sick, diseased, and \n\line 8.6 injured persons. Admission preference shall always be given to \n\line 8.7 patients who are, in whole or in part, public charges, and are \n\line 8.8 sent to the hospital by the county board. \n\line 8.9 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 8.10 {\ul following final enactment.} \n\line 8.11 Sec. 10. Minnesota Statutes 2000, section 383B.79, is \n\line 8.12 amended by adding a subdivision to read: \n\line 8.13 {\ul Subd. 5.} [FINANCING.] {\ul Hennepin county may appropriate} \n\line 8.14 {\ul funds for any of the activities described in subdivision 1,} \n\line 8.15 {\ul whether or not state funds are appropriated for the activity.} \n\line 8.16 {\ul Hennepin county may include any part of the costs of a project} \n\line 8.17 {\ul described in section 469.002, subdivision 12, in a capital} \n\line 8.18 {\ul improvement plan adopted under section 373.40, and may issue} \n\line 8.19 {\ul bonds for such purposes pursuant to and subject to the} \n\line 8.20 {\ul procedures and limitations set forth in section 373.40, whether} \n\line 8.21 {\ul or not the capital improvement to be financed is to be owned by} \n\line 8.22 {\ul the county or any other governmental entity. Such purposes are} \n\line 8.23 {\ul in addition to the capital improvements described in section} \n\line 8.24 {\ul 373.40, but shall not include light rail transit, commuter rail,} \n\line 8.25 {\ul or any activity related to either of those, or a sports facility} \n\line 8.26 {\ul building designed or used primarily for professional sports. No} \n\line 8.27 {\ul funds appropriated under this subdivision may be used to pay} \n\line 8.28 {\ul operating expenses.} \n\line 8.29 Sec. 11. Minnesota Statutes 2000, section 429.091, \n\line 8.30 subdivision 7a, is amended to read: \n\line 8.31 Subd. 7a. [REVOLVING FUND BONDS.] The council may by \n\line 8.32 resolution establish a revolving fund for the payment of the \n\line 8.33 costs of any improvement or any waterworks systems, sewer \n\line 8.34 systems, or storm sewer systems described in section 444.075{\ul ,} \n\line 8.35 {\ul the costs of facilities to maintain streets and water, sewer,} \n\line 8.36 {\ul and storm sewer systems} and for the payment of any obligations \n\line 9.1 issued to pay the costs {\strike thereof} {\ul of the facilities and systems} \n\line 9.2 {\ul referred to in this subdivision} or to refund obligations issued \n\line 9.3 for those purposes. The council may create within the revolving \n\line 9.4 fund a separate construction account into which the municipality \n\line 9.5 may deposit the proceeds of any obligations payable from the \n\line 9.6 fund, the proceeds of any special assessments collected with \n\line 9.7 respect to any improvement, any net revenues of a waterworks, \n\line 9.8 sewer system, or storm sewer system described in section 444.075 \n\line 9.9 or any other available funds of the municipality appropriated to \n\line 9.10 it. Amounts on deposit in the construction account may be used \n\line 9.11 to pay the costs of any improvement or any waterworks, sewer \n\line 9.12 system, or storm sewer system described in section 444.075 {\ul or} \n\line 9.13 {\ul any street or water, sewer, or storm sewer maintenance} \n\line 9.14 {\ul facilities}. No funds may be expended for an improvement unless \n\line 9.15 at least 20 percent of the costs of each such improvement is to \n\line 9.16 be assessed against benefited property. No funds may be \n\line 9.17 expended for a waterworks, sewer system, or storm sewer system, \n\line 9.18 other than a sewer system described in section 115.46, {\ul or} \n\line 9.19 {\ul maintenance facilities} unless the council estimates that the \n\line 9.20 costs will be recovered from the net revenues of the system or \n\line 9.21 any combined waterworks, sewer systems, or storm sewer systems \n\line 9.22 operated by the municipality. The council may also create a \n\line 9.23 separate debt service account within the revolving fund for the \n\line 9.24 payment of principal of and interest on any obligations payable \n\line 9.25 therefrom. Notwithstanding subdivision 4, the council is not \n\line 9.26 required to pledge any particular assessments or other revenues \n\line 9.27 to the payment of the obligations. Collections of special \n\line 9.28 assessments or net revenues may be deposited in either the \n\line 9.29 construction account or the debt service account as the council \n\line 9.30 or an officer designated by the council may determine, having \n\line 9.31 due regard for anticipated collections of special assessments \n\line 9.32 and net revenues from improvements or waterworks, sewer systems, \n\line 9.33 or storm sewer systems financed in whole or in part from the \n\line 9.34 construction account, and taxes levied for the payment of the \n\line 9.35 obligations. The council may issue obligations that are payable \n\line 9.36 primarily from the debt service account for the purpose of \n\line 10.1 providing funds to defray in whole or in part any expenses \n\line 10.2 incurred or estimated to be incurred in making the improvement \n\line 10.3 or improvements or in constructing the waterworks, sewer system, \n\line 10.4 or storm sewer system, including every item of cost of the kinds \n\line 10.5 authorized by section 475.65, {\ul and street and water, sewer, and} \n\line 10.6 {\ul storm sewer maintenance facilities} or to refund obligations \n\line 10.7 previously issued under this section or section 115.46 or \n\line 10.8 444.075. The obligations may be general obligations to which \n\line 10.9 the full faith and credit of the municipality are pledged. If \n\line 10.10 the special assessments to be levied and net revenues estimated \n\line 10.11 to be available for their payment are estimated to be at least \n\line 10.12 20 percent of the principal amount of the obligations, the \n\line 10.13 obligations may be issued without an election and shall not be \n\line 10.14 included in determining the net indebtedness of the municipality \n\line 10.15 under the provisions of any law limiting net indebtedness. {\ul The} \n\line 10.16 {\ul cost of a maintenance facility that may be financed under this} \n\line 10.17 {\ul subdivision is limited only to the portion of the facility that} \n\line 10.18 {\ul is fairly allocable to the maintenance of streets and water,} \n\line 10.19 {\ul sewer, and storm sewer systems.} \n\line 10.20 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 10.21 {\ul following final enactment.} \n\line 10.22 Sec. 12. Minnesota Statutes 2000, section 473.39, is \n\line 10.23 amended by adding a subdivision to read: \n\line 10.24 {\ul Subd. 1h.} [OBLIGATIONS.] {\ul After July 1, 2001, in addition} \n\line 10.25 {\ul to the authority in subdivisions 1a, 1b, 1c, 1d, 1e, and 1g, the} \n\line 10.26 {\ul council may issue certificates of indebtedness, bonds, or other} \n\line 10.27 {\ul obligations under this section in an amount not exceeding} \n\line 10.28 {\ul $45,000,000 for capital expenditures as prescribed in the} \n\line 10.29 {\ul council's regional transit master plan and transit capital} \n\line 10.30 {\ul improvement program and for related costs, including the costs} \n\line 10.31 {\ul of issuance and sale of the obligations, but not for computer} \n\line 10.32 {\ul software, or for construction, maintenance, or operation of} \n\line 10.33 {\ul light rail transit or commuter rail.} \n\line 10.34 [EFFECTIVE DATE; APPLICATION.] {\ul This section is effective} \n\line 10.35 {\ul the day following final enactment and applies in the counties of} \n\line 10.36 {\ul Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.} \n\line 11.1 Sec. 13. Minnesota Statutes 2000, section 474A.02, \n\line 11.2 subdivision 8, is amended to read: \n\line 11.3 Subd. 8. [FEDERAL TAX LAW.] "Federal tax law" means those \n\line 11.4 provisions of the Internal Revenue Code of 1986, as \n\line 11.5 amended {\strike through December 31, 1990}, that limit the aggregate \n\line 11.6 amount of obligations of a specified type or types which may be \n\line 11.7 issued by an issuer during a calendar year whose interest is \n\line 11.8 excluded from gross income for purposes of federal income \n\line 11.9 taxation. \n\line 11.10 Sec. 14. Minnesota Statutes 2000, section 474A.02, \n\line 11.11 subdivision 13a, is amended to read: \n\line 11.12 Subd. 13a. [SMALL ISSUE POOL.] "Small issue pool" means \n\line 11.13 the amount of the annual volume cap allocated under section \n\line 11.14 474A.061, that is available for the issuance of enterprise zone \n\line 11.15 facility bonds authorized under Public Law Number 103-66, \n\line 11.16 section 13301, small issue bonds to finance manufacturing \n\line 11.17 projects, {\strike and} the agricultural development bond beginning farmer \n\line 11.18 and agricultural business enterprise loan program authorized in \n\line 11.19 sections 41C.01 to 41C.13{\ul , and student loan bonds issued by the} \n\line 11.20 {\ul Minnesota higher education services office}. \n\line 11.21 Sec. 15. Minnesota Statutes 2000, section 474A.02, \n\line 11.22 subdivision 22a, is amended to read: \n\line 11.23 Subd. 22a. [PUBLIC FACILITIES POOL.] "Public facilities \n\line 11.24 pool" means the amount of the annual volume cap allocated under \n\line 11.25 section 474A.061, which is available for the issuance of public \n\line 11.26 facility bonds {\strike or student loan bonds}. \n\line 11.27 Sec. 16. Minnesota Statutes 2000, section 474A.02, \n\line 11.28 subdivision 22b, is amended to read: \n\line 11.29 Subd. 22b. [PUBLIC FACILITIES PROJECT.] "Public facilities \n\line 11.30 project" means any publicly owned facility{\ul , or facility owned by} \n\line 11.31 {\ul a nonprofit organization that is used for district heating or} \n\line 11.32 {\ul cooling,} that is eligible to be financed with the proceeds of \n\line 11.33 public facilities bonds as defined under section 474A.02, \n\line 11.34 subdivision 23a. \n\line 11.35 Sec. 17. Minnesota Statutes 2000, section 474A.02, \n\line 11.36 subdivision 23a, is amended to read: \n\line 12.1 Subd. 23a. [QUALIFIED BONDS.] "Qualified bonds" means the \n\line 12.2 specific type or types of obligations that are subject to the \n\line 12.3 annual volume cap. Qualified bonds include the following types \n\line 12.4 of obligations as defined in federal tax law: \n\line 12.5 (a) "public facility bonds" means "exempt facility bonds" \n\line 12.6 as defined in federal tax law, except for residential rental \n\line 12.7 project bonds, which are those obligations issued to finance \n\line 12.8 airports, docks and wharves, mass commuting facilities, \n\line 12.9 facilities for the furnishing of water, sewage facilities, solid \n\line 12.10 waste disposal facilities, facilities for the local furnishing \n\line 12.11 of electric energy or gas, local district heating or cooling \n\line 12.12 facilities, and qualified hazardous waste facilities. New bonds \n\line 12.13 and other obligations are ineligible to receive state \n\line 12.14 allocations or entitlement authority for public facility \n\line 12.15 projects under this section if they have been issued: \n\line 12.16 (1) for the purpose of refinancing, refunding, or otherwise \n\line 12.17 defeasing existing debt; and \n\line 12.18 (2) more than one calendar year prior to the date of \n\line 12.19 application; \n\line 12.20 (b) "residential rental project bonds" which are those \n\line 12.21 obligations issued to finance qualified residential rental \n\line 12.22 projects; \n\line 12.23 (c) "mortgage bonds"; \n\line 12.24 (d) "small issue bonds" issued to finance manufacturing \n\line 12.25 projects and the acquisition or improvement of agricultural real \n\line 12.26 or personal property under sections 41C.01 to 41C.13; \n\line 12.27 (e) "student loan bonds" {\ul issued by or on behalf of the} \n\line 12.28 {\ul Minnesota higher education services office}; \n\line 12.29 (f) "redevelopment bonds"; \n\line 12.30 (g) "governmental bonds" with a nonqualified amount in \n\line 12.31 excess of $15,000,000 as set forth in section 141(b)5 of federal \n\line 12.32 tax law; and \n\line 12.33 (h) "enterprise zone facility bonds" issued to finance \n\line 12.34 facilities located within empowerment zones or enterprise \n\line 12.35 communities, as authorized under Public Law Number 103-66, \n\line 12.36 section 13301. \n\line 13.1 Sec. 18. Minnesota Statutes 2000, section 474A.03, \n\line 13.2 subdivision 1, is amended to read: \n\line 13.3 Subdivision 1. [UNDER FEDERAL TAX LAW; ALLOCATIONS.] At \n\line 13.4 the beginning of each calendar year after December 31, {\strike 1997} \n\line 13.5 {\ul 2001}, the commissioner shall determine the aggregate dollar \n\line 13.6 amount of the annual volume cap under federal tax law for the \n\line 13.7 calendar year, and of this amount the commissioner shall make \n\line 13.8 the following allocation: \n\line 13.9 (1) {\strike $63,000,000} {\ul $74,530,000} to the small issue pool; \n\line 13.10 (2) {\strike $59,000,000} {\ul $122,060,000} to the housing pool, \n\line 13.11 {\strike $37,000,000} of which {\ul 31 percent of the adjusted allocation} is \n\line 13.12 reserved until the {\strike day after the first} {\ul last} Monday in {\strike February} \n\line 13.13 {\ul July} for single-family housing programs; \n\line 13.14 (3) {\strike $10,500,000} {\ul $12,750,000} to the public facilities pool; \n\line 13.15 and \n\line 13.16 (4) amounts to be allocated as provided in subdivision 2a. \n\line 13.17 If the annual volume cap is greater or less than the amount \n\line 13.18 of bonding authority allocated under clauses (1) to (4) and \n\line 13.19 subdivision 2a, paragraph (a), clauses (1) to (4), the \n\line 13.20 allocation must be adjusted so that each adjusted allocation is \n\line 13.21 the same percentage of the annual volume cap as each original \n\line 13.22 allocation is of the total bonding authority originally \n\line 13.23 allocated. \n\line 13.24 Sec. 19. Minnesota Statutes 2000, section 474A.03, \n\line 13.25 subdivision 2a, is amended to read: \n\line 13.26 Subd. 2a. [ENTITLEMENT ISSUER ALLOCATION.] (a) The \n\line 13.27 commissioner shall make the following allocation to the \n\line 13.28 Minnesota housing finance agency and the following cities and \n\line 13.29 county: \n\line 13.30 (1) {\strike $53,750,000} {\ul $84,940,000} per year to the Minnesota \n\line 13.31 housing finance agency{\strike , less any amount received in the previous} \n\line 13.32 {\strike year under section 474A.091, subdivision 6}; \n\line 13.33 (2) {\strike $21,000,000} {\ul $33,190,000} per year to the city of \n\line 13.34 Minneapolis; \n\line 13.35 (3) {\strike $15,750,000} {\ul $24,890,000} per year to the city of Saint \n\line 13.36 Paul; and \n\line 14.1 (4) {\strike $10,500,000} {\ul $16,600,000} per year to the Dakota county \n\line 14.2 community development agency for the county of Dakota and all \n\line 14.3 political subdivisions located within the county. \n\line 14.4 (b) {\ul Entitlement} allocations provided under this subdivision \n\line 14.5 must be used for mortgage bonds, mortgage credit certificates, \n\line 14.6 public facility bonds, or residential rental project bonds, \n\line 14.7 except that entitlement issuers {\strike may also use their allocations} \n\line 14.8 {\strike for public facility bonds, and} may carry forward their \n\line 14.9 allocations for any qualified bond as defined under section \n\line 14.10 474A.02, subdivision 23a. \n\line 14.11 {\ul (c) Data on the home purchase price amount, mortgage} \n\line 14.12 {\ul amount, income, household size, and race of the households} \n\line 14.13 {\ul served with the proceeds of mortgage revenue bonds and mortgage} \n\line 14.14 {\ul credit certificates in the previous year must be submitted by} \n\line 14.15 {\ul each entitlement issuer to the Minnesota housing finance agency} \n\line 14.16 {\ul by December 31 of each year. Compliance by the Minnesota} \n\line 14.17 {\ul housing finance agency with the provisions of section 462A.073,} \n\line 14.18 {\ul subdivision 5, shall be deemed compliance with the reporting} \n\line 14.19 {\ul requirements of this subdivision.} \n\line 14.20 Sec. 20. Minnesota Statutes 2000, section 474A.03, \n\line 14.21 subdivision 4, is amended to read: \n\line 14.22 Subd. 4. [APPLICATION FEE.] Every entitlement issuer and \n\line 14.23 other issuer shall pay to the commissioner a nonrefundable \n\line 14.24 application fee to offset the state cost of program \n\line 14.25 administration. The application fee is $20 for each $100,000 of \n\line 14.26 entitlement or allocation requested, with the request rounded to \n\line 14.27 the nearest $100,000. The minimum fee is $20. Fees received by \n\line 14.28 the commissioner must be credited to the general fund. \n\line 14.29 {\strike Application fees for projects of entitlement issuers must be} \n\line 14.30 {\strike submitted to the commissioner with the notice of issuance of} \n\line 14.31 {\strike bonds, notice of use of mortgage credit certificates, and notice} \n\line 14.32 {\strike of carry forward.} {\ul Each entitlement issuer must pay its} \n\line 14.33 {\ul application fee in full for that calendar year to the} \n\line 14.34 {\ul commissioner no later than when the first notice of issuance of} \n\line 14.35 {\ul bonds, notice of use of mortgage credit certificates, or notice} \n\line 14.36 {\ul of carry forward is submitted to the commissioner by that issuer.}\n\line 15.1 Sec. 21. Minnesota Statutes 2000, section 474A.04, \n\line 15.2 subdivision 1a, is amended to read: \n\line 15.3 Subd. 1a. [ENTITLEMENT RESERVATIONS; CARRYFORWARD; \n\line 15.4 DEDUCTION.] Any amount returned by an entitlement issuer before \n\line 15.5 July 15 shall be reallocated through the housing pool. Any \n\line 15.6 amount returned on or after July 15 shall be reallocated through \n\line 15.7 the unified pool. An amount returned after the last Monday in \n\line 15.8 November shall be reallocated to the Minnesota housing finance \n\line 15.9 agency. Any amount of bonding authority that an entitlement \n\line 15.10 issuer carries forward under federal tax law that is not \n\line 15.11 permanently issued or for which the governing body of the \n\line 15.12 entitlement issuer has not enacted a resolution electing to use \n\line 15.13 the authority for mortgage credit certificates {\strike by July 15} {\ul and} \n\line 15.14 {\ul has not provided a notice of issue to the commissioner before} \n\line 15.15 {\ul 4:30 p.m. on the last business day in December} of the succeeding \n\line 15.16 calendar year shall be deducted from the entitlement allocation \n\line 15.17 for that entitlement issuer {\strike for the current calendar year. Any} \n\line 15.18 {\strike amount deducted from an entitlement issuer's allocation under} \n\line 15.19 {\strike this subdivision shall be reallocated through the unified pool.} \n\line 15.20 {\strike An entitlement issuer must permanently issue all carryforward} \n\line 15.21 {\strike authority or enact a resolution electing to use all carryforward} \n\line 15.22 {\strike authority for mortgage credit certificates prior to issuing any} \n\line 15.23 {\strike current year authority of that entitlement issuer} {\ul in the next} \n\line 15.24 {\ul succeeding calendar year. Any amount deducted from an} \n\line 15.25 {\ul entitlement issuer's allocation under this subdivision shall be} \n\line 15.26 {\ul reallocated to other entitlement issuers, the housing pool, the} \n\line 15.27 {\ul small issue pool, and the public facilities pool on a} \n\line 15.28 {\ul proportional basis consistent with section 474A.03}. \n\line 15.29 Sec. 22. Minnesota Statutes 2000, section 474A.04, \n\line 15.30 subdivision 5, is amended to read: \n\line 15.31 Subd. 5. [NOTICE OF ENTITLEMENT ALLOCATION.] As soon as \n\line 15.32 possible in each calendar year, the commissioner shall {\strike provide} \n\line 15.33 {\strike to each entitlement issuer a written notice of the amount of its} \n\line 15.34 {\ul post on the department's Web site the amount of each} entitlement \n\line 15.35 allocation. \n\line 15.36 Sec. 23. Minnesota Statutes 2000, section 474A.045, is \n\line 16.1 amended to read: \n\line 16.2 474A.045 [SCORING SYSTEM FOR {\ul ENTERPRISE ZONE FACILITY} \n\line 16.3 {\ul PROJECTS AND} MANUFACTURING PROJECTS.] \n\line 16.4 The following criteria must be used in determining the \n\line 16.5 allocation of {\ul enterprise zone facility bonds and} small issue \n\line 16.6 bonds for manufacturing projects. The issuer must prepare and \n\line 16.7 submit to the commissioner a public purpose scoring worksheet \n\line 16.8 that presents the data and methods used in determining the total \n\line 16.9 score under this section. The total score is the sum of the \n\line 16.10 following: \n\line 16.11 (1) the number of direct new jobs in the state generated by \n\line 16.12 the proposed project for the next two years per $100,000 of \n\line 16.13 proposed allocation multiplied by 15; \n\line 16.14 (2) the number of direct existing jobs in the state \n\line 16.15 multiplied by .625 due to the proposed project {\ul for the next two} \n\line 16.16 {\ul years} per $100,000 of proposed allocation multiplied by 15; \n\line 16.17 (3) the average hourly wage paid to employees by the \n\line 16.18 proposed project {\ul for the next two years}, exclusive of benefits \n\line 16.19 mandated by law, based on the following scale: \n\line 16.20 Wages paid per hour $ 8 $10 $12 $15 \n\line 16.21 Non-Metro area points awarded 10 15 20 20 \n\line 16.22 Seven-County Metro Area \n\line 16.23 points awarded 0 10 15 20 \n\line 16.24 For purposes of this section, the seven-county metropolitan \n\line 16.25 area includes Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, \n\line 16.26 and Washington {\ul counties}; \n\line 16.27 (4) the quotient of the estimated total net increase in \n\line 16.28 property taxes generated in the state by the project in the \n\line 16.29 first full year of operation divided by the proposed bond \n\line 16.30 allocation, multiplied by 500; {\strike and} \n\line 16.31 (5) the seasonally unadjusted unemployment rate in the \n\line 16.32 community where the proposed project is located measured as a \n\line 16.33 percent of the state's unemployment rate, multiplied by ten. \n\line 16.34 The community seasonally unadjusted unemployment rate used \n\line 16.35 in determining the points under clause (5) must be the most \n\line 16.36 recent rate for the city or county in which the proposed project \n\line 17.1 is located, as provided by the commissioner of economic security.\n\line 17.2 {\ul (6) 20 points for projects that locate in an incorporated} \n\line 17.3 {\ul area or a planned urban growth area as defined by section} \n\line 17.4 {\ul 462.352, subdivision 18;} \n\line 17.5 {\ul (7) 20 points for brownfield projects located in a state or} \n\line 17.6 {\ul federal Superfund site, a voluntary investigation and cleanup} \n\line 17.7 {\ul site, or a brownfield site, all as defined by the Minnesota} \n\line 17.8 {\ul pollution control agency; and} \n\line 17.9 {\ul (8) 20 points for projects with favorable environmental} \n\line 17.10 {\ul citizenship as evidenced by no nonforgivable or combination} \n\line 17.11 {\ul administrative penalty orders, stipulation agreements, consent} \n\line 17.12 {\ul decrees, or other enforcement orders containing a monetary} \n\line 17.13 {\ul penalty by the Minnesota pollution control agency over the past} \n\line 17.14 {\ul three years or pending at the time of application.} \n\line 17.15 Sec. 24. Minnesota Statutes 2000, section 474A.047, \n\line 17.16 subdivision 1, is amended to read: \n\line 17.17 Subdivision 1. [ELIGIBILITY.] (a) An issuer may only use \n\line 17.18 the proceeds from residential rental bonds if the proposed \n\line 17.19 project meets {\strike one of} the following {\ul requirements}: \n\line 17.20 {\strike (1) the proposed project is a single room occupancy project} \n\line 17.21 {\strike and all the units of the project will be occupied by individuals} \n\line 17.22 {\strike whose incomes at the time of their initial residency in the} \n\line 17.23 {\strike project are 50 percent or less of the greater of the statewide} \n\line 17.24 {\strike or county median income adjusted for household size as} \n\line 17.25 {\strike determined by the federal Department of Housing and Urban} \n\line 17.26 {\strike Development;} \n\line 17.27 {\strike (2) the proposed project is a multifamily project where at} \n\line 17.28 {\strike least 75 percent of the units have two or more bedrooms and at} \n\line 17.29 {\strike least one-third of the 75 percent have three or more bedrooms;} \n\line 17.30 {\strike or} \n\line 17.31 {\strike (3) the proposed project is a multifamily project that} \n\line 17.32 {\strike meets the following requirements:} \n\line 17.33 {\strike (i) the proposed project is the rehabilitation of an} \n\line 17.34 {\strike existing building which meets the requirements for minimum} \n\line 17.35 {\strike rehabilitation expenditures in sections 42(e)(2) and 42(e)(3)(A)} \n\line 17.36 {\strike of the Internal Revenue Code;} \n\line 18.1 {\strike (ii) the proposed project involves participation by the} \n\line 18.2 {\strike Minnesota housing finance agency or a local unit of government} \n\line 18.3 {\strike in the financing of the acquisition or rehabilitation of the} \n\line 18.4 {\strike project. For purposes of this subdivision, "participation"} \n\line 18.5 {\strike means an activity other than the issuance of the bonds; and} \n\line 18.6 {\strike (iii) the proposed project must be occupied by individuals} \n\line 18.7 {\strike or families whose incomes at the time of their initial residency} \n\line 18.8 {\strike in the project meet the requirements of section 42(g) of the} \n\line 18.9 {\strike Internal Revenue Code.} \n\line 18.10 {\ul (1) the proposed residential rental project meets the} \n\line 18.11 {\ul requirements of section 142(d) of the Internal Revenue Code} \n\line 18.12 {\ul regarding the incomes of the occupants of the housing; and} \n\line 18.13 {\ul (2) the maximum rent for at least 20 percent of the units} \n\line 18.14 {\ul in the proposed residential rental project do not exceed the} \n\line 18.15 {\ul area fair market rent or exception fair market rents for} \n\line 18.16 {\ul existing housing, if applicable, as established by the federal} \n\line 18.17 {\ul Department of Housing and Urban Development.} \n\line 18.18 (b) {\strike The maximum rent for a proposed single room occupancy} \n\line 18.19 {\strike unit under paragraph (a), clause (1), is 30 percent of the} \n\line 18.20 {\strike amount equal to 30 percent of the greater of the statewide or} \n\line 18.21 {\strike county median income for a one-member household as determined by} \n\line 18.22 {\strike the federal Department of Housing and Urban Development. The} \n\line 18.23 {\strike maximum rent for at least 75 percent of the units of a} \n\line 18.24 {\strike multifamily project under paragraph (a), clause (2), is 30} \n\line 18.25 {\strike percent of the amount equal to 50 percent of the greater of the} \n\line 18.26 {\strike statewide or county median income as determined by the federal} \n\line 18.27 {\strike Department of Housing and Urban Development based on a household} \n\line 18.28 {\strike size with 1.5 persons per bedroom.} \n\line 18.29 {\strike (c)} The proceeds from residential rental bonds may be used \n\line 18.30 for a project for which project-based federal rental assistance \n\line 18.31 payments are made only if: \n\line 18.32 (1) the owner of the project enters into a binding \n\line 18.33 agreement with the Minnesota housing finance agency under which \n\line 18.34 the owner is obligated to extend any existing low-income \n\line 18.35 affordability restrictions and any contract or agreement for \n\line 18.36 rental assistance payments for the maximum term permitted, \n\line 19.1 including any renewals thereof; and \n\line 19.2 (2) the Minnesota housing finance agency certifies that \n\line 19.3 project reserves will be maintained at closing of the bond issue \n\line 19.4 and budgeted in future years at the lesser of: \n\line 19.5 (i) the level described in Minnesota Rules, part 4900.0010, \n\line 19.6 subpart 7, item A, subitem (2), effective May 1, 1997; or \n\line 19.7 (ii) the level of project reserves available prior to the \n\line 19.8 bond issue, provided that additional money is available to \n\line 19.9 accomplish repairs and replacements needed at the time of bond \n\line 19.10 issue. \n\line 19.11 Sec. 25. Minnesota Statutes 2000, section 474A.047, \n\line 19.12 subdivision 2, is amended to read: \n\line 19.13 Subd. 2. [15-YEAR AGREEMENT.] Prior to the issuance of \n\line 19.14 residential rental bonds, the developer of the project for which \n\line 19.15 the bond proceeds will be used must enter into a 15-year \n\line 19.16 agreement with the issuer that specifies the maximum rental \n\line 19.17 rates of the {\ul rent-restricted} units in the project and the income \n\line 19.18 levels of the residents of the project {\ul occupying} \n\line 19.19 {\ul income-restricted units}. {\strike The} {\ul Such} rental rates and income \n\line 19.20 levels must be within the limitations established under \n\line 19.21 subdivision 1. The developer must annually certify to the \n\line 19.22 issuer over the term of the agreement that the rental rates {\ul for} \n\line 19.23 {\ul the rent-restricted units} are within the limitations under \n\line 19.24 subdivision 1. The issuer may request individual certification \n\line 19.25 of the income of {\strike all} residents of the {\strike project} {\ul income-restricted} \n\line 19.26 {\ul units}. The commissioner may request from the issuer a copy of \n\line 19.27 the annual certification prepared by the developer. The \n\line 19.28 commissioner may require the issuer to request individual \n\line 19.29 certification of all residents of the {\strike project} {\ul income-restricted} \n\line 19.30 {\ul units}. \n\line 19.31 Sec. 26. Minnesota Statutes 2000, section 474A.061, \n\line 19.32 subdivision 1, is amended to read: \n\line 19.33 Subdivision 1. [APPLICATION.] (a) An issuer may apply for \n\line 19.34 an allocation under this section by submitting to the department \n\line 19.35 an application on forms provided by the department, accompanied \n\line 19.36 by (1) a preliminary resolution, (2) a statement of bond counsel \n\line 20.1 that the proposed issue of obligations requires an allocation \n\line 20.2 under this chapter {\ul and the Internal Revenue Code}, (3) the type \n\line 20.3 of qualified bonds to be issued, (4) an application deposit in \n\line 20.4 the amount of one percent of the requested allocation before the \n\line 20.5 last Monday in July, or in the amount of two percent of the \n\line 20.6 requested allocation on or after the last Monday in July, (5) a \n\line 20.7 public purpose scoring worksheet for manufacturing project {\ul and} \n\line 20.8 {\ul enterprise zone facility project} applications, and (6) {\ul for} \n\line 20.9 {\ul residential rental projects,} a statement from the applicant or \n\line 20.10 bond counsel as to whether the project preserves existing \n\line 20.11 federally subsidized housing for residential rental project \n\line 20.12 applications {\ul and whether the project is restricted to persons} \n\line 20.13 {\ul who are 55 years of age or older}. The issuer must pay the \n\line 20.14 application deposit by a check made payable to the department of \n\line 20.15 finance. The Minnesota housing finance agency, the Minnesota \n\line 20.16 rural finance authority, and the Minnesota higher education \n\line 20.17 services office may apply for and receive an allocation under \n\line 20.18 this section without submitting an application deposit. \n\line 20.19 (b) An entitlement issuer may not apply for an allocation \n\line 20.20 from the housing pool or from the public facilities pool unless \n\line 20.21 it has either permanently issued bonds equal to the amount of \n\line 20.22 its entitlement allocation for the current year plus any amount \n\line 20.23 of bonding authority carried forward from previous years or \n\line 20.24 returned for reallocation all of its unused entitlement \n\line 20.25 allocation. For purposes of this subdivision, its entitlement \n\line 20.26 allocation includes an amount obtained under section 474A.04, \n\line 20.27 subdivision 6. This paragraph does not apply to an application \n\line 20.28 from the Minnesota housing finance agency for an allocation \n\line 20.29 under subdivision 2a for cities who choose to have the agency \n\line 20.30 issue bonds on their behalf. \n\line 20.31 (c) If an application is rejected under this section, the \n\line 20.32 commissioner must notify the applicant and return the \n\line 20.33 application deposit to the applicant within 30 days unless the \n\line 20.34 applicant requests in writing that the application be \n\line 20.35 resubmitted. The granting of an allocation of bonding authority \n\line 20.36 under this section must be evidenced by a certificate of \n\line 21.1 allocation. \n\line 21.2 Sec. 27. Minnesota Statutes 2000, section 474A.061, \n\line 21.3 subdivision 2a, is amended to read: \n\line 21.4 Subd. 2a. [HOUSING POOL ALLOCATION.] (a) {\strike On the first} \n\line 21.5 {\strike business day that falls on a Monday of the calendar year and the} \n\line 21.6 {\strike first Monday in February} {\ul Commencing on the second Tuesday in} \n\line 21.7 {\ul January and continuing on each Monday through July 15}, the \n\line 21.8 commissioner shall allocate available bonding authority {\strike in} {\ul from} \n\line 21.9 the housing pool to applications received {\strike by} {\ul on or before} the \n\line 21.10 Monday of the {\strike previous} {\ul preceding} week for residential rental \n\line 21.11 projects {\strike that are not restricted to persons who are 55 years of} \n\line 21.12 {\strike age or older and} that meet the eligibility criteria under \n\line 21.13 section 474A.047{\strike , except that allocations may be made to} \n\line 21.14 {\strike projects that are restricted to persons who are 55 years of age} \n\line 21.15 {\strike or older, if the project preserves existing federally subsidized} \n\line 21.16 {\strike housing. Projects that preserve existing federally subsidized} \n\line 21.17 {\strike housing shall be allocated available bonding authority in the} \n\line 21.18 {\strike housing pool for residential rental projects prior to the} \n\line 21.19 {\strike allocation of available bonding authority to other eligible} \n\line 21.20 {\strike residential rental projects}. {\ul Allocations of available bonding} \n\line 21.21 {\ul authority from the housing pool for eligible residential rental} \n\line 21.22 {\ul projects shall be awarded in the following order of priority:} \n\line 21.23 {\ul (1) projects that preserve existing federally subsidized} \n\line 21.24 {\ul housing; (2) projects that are not restricted to persons who are} \n\line 21.25 {\ul 55 years of age or older; and (3) other residential rental} \n\line 21.26 {\ul projects. Prior to May 15, no allocation shall be made to a} \n\line 21.27 {\ul project restricted to persons who are 55 years of age or older.} \n\line 21.28 If an issuer that receives an allocation under this paragraph \n\line 21.29 does not issue obligations equal to all or a portion of the \n\line 21.30 allocation received within 120 days of the allocation or returns \n\line 21.31 the allocation to the commissioner, the amount of the allocation \n\line 21.32 is canceled and returned for reallocation through the housing \n\line 21.33 pool {\ul or to the unified pool after July 15}. \n\line 21.34 (b) After {\strike February} {\ul January} 1, and through {\strike February} {\ul January} \n\line 21.35 15, the Minnesota housing finance agency may accept applications \n\line 21.36 from cities for single-family housing programs which meet \n\line 22.1 program requirements as follows: \n\line 22.2 (1) the housing program must meet a locally identified \n\line 22.3 housing need and be economically viable; \n\line 22.4 (2) the adjusted income of home buyers may not exceed 80 \n\line 22.5 percent of the greater of statewide or area median income as \n\line 22.6 published by the Department of Housing and Urban Development, \n\line 22.7 adjusted for household size; \n\line 22.8 (3) house price limits may not exceed the federal price \n\line 22.9 limits established for mortgage revenue bond programs. Data on \n\line 22.10 the home purchase price amount, mortgage amount, income, \n\line 22.11 household size, and race of the households served in the \n\line 22.12 previous year's single-family housing program, if any, must be \n\line 22.13 included in each application; and \n\line 22.14 (4) {\ul for applicants who choose to have the agency issue} \n\line 22.15 {\ul bonds on their behalf, an application fee pursuant to section} \n\line 22.16 {\ul 474A.03, subdivision 4, and} an application deposit equal to one \n\line 22.17 percent of the requested allocation must be submitted {\ul to the} \n\line 22.18 {\ul Minnesota housing finance agency} before the agency forwards the \n\line 22.19 list specifying the amounts allocated to the commissioner under \n\line 22.20 paragraph {\strike (c)} {\ul (d)}. The agency shall submit the city's \n\line 22.21 application {\ul fee} and application deposit to the commissioner when \n\line 22.22 requesting an allocation from the housing pool. \n\line 22.23 Applications by a consortium shall include the name of each \n\line 22.24 member of the consortium and the amount of allocation requested \n\line 22.25 by each member. \n\line 22.26 {\strike The Minnesota housing finance agency may accept} \n\line 22.27 {\strike applications from June 15 through June 30 from cities for} \n\line 22.28 {\strike single-family housing programs which meet program requirements} \n\line 22.29 {\strike specified under clauses (1) to (4) if bonding authority is} \n\line 22.30 {\strike available in the housing pool. Applications will be accepted} \n\line 22.31 {\strike from June 15 to June 30 only from cities that received an} \n\line 22.32 {\strike allotment in the same calendar year and used at least 75 percent} \n\line 22.33 {\strike of their allotment by June 1.} \n\line 22.34 {\ul (c) Any amounts remaining in the housing pool after July 15} \n\line 22.35 {\ul are available for single-family housing programs for cities that} \n\line 22.36 {\ul applied in January and received an allocation under this section} \n\line 23.1 {\ul in the same calendar year. For a city that chooses to issue} \n\line 23.2 {\ul bonds on its own behalf or pursuant to a joint powers agreement,} \n\line 23.3 {\ul the agency must allot available bonding authority based on the} \n\line 23.4 {\ul formula in paragraphs (d) and (f).} Allocations will be made \n\line 23.5 loan by loan, on a first come, first served basis \n\line 23.6 among {\strike applicant} cities {\ul on whose behalf the Minnesota housing} \n\line 23.7 {\ul finance agency issues bonds}. {\strike The agency must allot available} \n\line 23.8 {\strike bonding authority.} \n\line 23.9 {\ul Any city that received an allocation pursuant to paragraph} \n\line 23.10 {\ul (f) in the same calendar year that wishes to issue bonds on its} \n\line 23.11 {\ul own behalf or pursuant to a joint powers agreement for an amount} \n\line 23.12 {\ul becoming available for single-family housing programs after July} \n\line 23.13 {\ul 15 shall notify the Minnesota housing finance agency by July} \n\line 23.14 {\ul 15. The Minnesota housing finance agency shall notify each city} \n\line 23.15 {\ul making a request of the amount of its allocation within three} \n\line 23.16 {\ul business days after July 15. The city must comply with} \n\line 23.17 {\ul paragraph (f).} \n\line 23.18 For purposes of paragraphs (a) to {\strike (g)} {\ul (h)}, "city" means a \n\line 23.19 county or a consortium of local government units that agree \n\line 23.20 through a joint powers agreement to apply together for \n\line 23.21 single-family housing programs, and has the meaning given it in \n\line 23.22 section 462C.02, subdivision 6. "Agency" means the Minnesota \n\line 23.23 housing finance agency. \n\line 23.24 {\strike (c)} {\ul (d)} The total amount of allocation for mortgage bonds \n\line 23.25 for one city is limited to the lesser of: (i) the amount \n\line 23.26 requested, or (ii) the product of the total amount available for \n\line 23.27 mortgage bonds from the housing pool, multiplied by the ratio of \n\line 23.28 each applicant's population as determined by the most recent \n\line 23.29 estimate of the city's population released by the state \n\line 23.30 demographer's office to the total of all the applicants' \n\line 23.31 population, except that each applicant shall be allocated a \n\line 23.32 minimum of $100,000 regardless of the amount requested or the \n\line 23.33 amount determined under the formula in clause (ii). If a city \n\line 23.34 applying for an allocation is located within a county that has \n\line 23.35 also applied for an allocation, the city's population will be \n\line 23.36 deducted from the county's population in calculating the amount \n\line 24.1 of allocations under this paragraph. \n\line 24.2 Upon determining the amount of each applicant's allocation, \n\line 24.3 the agency shall forward {\ul to the commissioner} a list specifying \n\line 24.4 the amounts allotted to each application {\strike and application deposit} \n\line 24.5 {\strike checks to the commissioner} {\ul with all application fees and} \n\line 24.6 {\ul deposits from applicants who choose to have the agency issue} \n\line 24.7 {\ul bonds on their behalf}. \n\line 24.8 {\ul Total allocations from the housing pool for single-family} \n\line 24.9 {\ul housing programs may not exceed 31 percent of the adjusted} \n\line 24.10 {\ul allocation to the housing pool until after July 15.} \n\line 24.11 {\strike (d)} {\ul (e)} The agency may issue bonds on behalf of \n\line 24.12 participating cities. The agency shall request an allocation \n\line 24.13 from the commissioner for all applicants who choose to have the \n\line 24.14 agency issue bonds on their behalf and the commissioner shall \n\line 24.15 allocate the requested amount to the agency. The agency may \n\line 24.16 request an allocation at any time after the {\strike first Monday} {\ul second} \n\line 24.17 {\ul Tuesday} in {\strike February} {\ul January} and through the last Monday in July{\strike ,} \n\line 24.18 {\strike but may request an allocation no later than the last Monday in} \n\line 24.19 {\strike July}. {\ul After awarding an allocation and receiving a notice of} \n\line 24.20 {\ul issuance for the mortgage bonds issued on behalf of the} \n\line 24.21 {\ul participating cities, the commissioner shall transfer the} \n\line 24.22 {\ul application deposits to the Minnesota housing finance agency to} \n\line 24.23 {\ul be returned to the participating cities.} The {\strike commissioner} \n\line 24.24 {\ul Minnesota housing finance agency} shall return any application \n\line 24.25 deposit to a city that paid an application deposit under \n\line 24.26 paragraph (b), clause (4), but was not part of the list \n\line 24.27 forwarded to the commissioner under paragraph {\strike (c)} {\ul (d)}. \n\line 24.28 {\strike (e)} {\ul (f)} A city may choose to issue bonds on its own behalf \n\line 24.29 or through a joint powers agreement {\strike or may use bonding authority} \n\line 24.30 {\strike for mortgage credit certificates} and may request an allocation \n\line 24.31 from the commissioner {\ul by forwarding an application with an} \n\line 24.32 {\ul application fee pursuant to section 474A.03, subdivision 4, and} \n\line 24.33 {\ul a one percent application deposit to the commissioner no later} \n\line 24.34 {\ul than the Monday of the week preceding an allocation}. If the \n\line 24.35 total amount requested by all applicants exceeds the amount \n\line 24.36 available in the pool, the city may not receive a greater \n\line 25.1 allocation than the amount it would have received under the list \n\line 25.2 forwarded by the Minnesota housing finance agency to the \n\line 25.3 commissioner. No city may request or receive an allocation from \n\line 25.4 the commissioner until the list under paragraph {\strike (c)} {\ul (d)} has been \n\line 25.5 forwarded to the commissioner. A city must request an \n\line 25.6 allocation from the commissioner no later than {\strike 14 days before} \n\line 25.7 {\strike the unified pool is created pursuant to section 474A.091,} \n\line 25.8 {\strike subdivision 1} {\ul the last Monday in July}. {\strike On and after the first} \n\line 25.9 {\strike Monday in February and through the last Monday in July,} No city \n\line 25.10 may receive an allocation from the housing pool {\ul for mortgage} \n\line 25.11 {\ul bonds} which has not first applied to the Minnesota housing \n\line 25.12 finance agency. The commissioner shall allocate the requested \n\line 25.13 amount to the city or cities subject to the limitations under \n\line 25.14 this paragraph. \n\line 25.15 If a city issues mortgage bonds from an allocation received \n\line 25.16 under this paragraph, the issuer must provide for the recycling \n\line 25.17 of funds into new loans. If the issuer is not able to provide \n\line 25.18 for recycling, the issuer must notify the commissioner in \n\line 25.19 writing of the reason that recycling was not possible and the \n\line 25.20 reason the issuer elected not to have the Minnesota housing \n\line 25.21 finance agency issue the bonds. "Recycling" means the use of \n\line 25.22 money generated from the repayment and prepayment of loans for \n\line 25.23 further eligible loans or for the redemption of bonds and the \n\line 25.24 issuance of current refunding bonds. \n\line 25.25 {\strike (f)} {\ul (g)} No entitlement city or county or city in an \n\line 25.26 entitlement county may apply for or be allocated authority to \n\line 25.27 issue {\ul mortgage} bonds or use mortgage credit certificates from \n\line 25.28 the housing pool. {\ul No city in an entitlement county may apply} \n\line 25.29 {\ul for or be allocated authority to issue residential rental bonds} \n\line 25.30 {\ul from the housing pool or the unified pool.} \n\line 25.31 {\strike (g)} {\ul (h)} A city that does not use at least 50 percent of its \n\line 25.32 allotment by the date applications are due for the first \n\line 25.33 allocation that is made from the housing pool for single-family \n\line 25.34 housing programs in the immediately succeeding calendar year may \n\line 25.35 not apply to the housing pool for a single-family mortgage bond \n\line 25.36 or mortgage credit certificate program allocation that exceeds \n\line 26.1 the amount of its allotment for the preceding year that was used \n\line 26.2 by the city in the immediately preceding year or receive an \n\line 26.3 allotment from the housing pool in the succeeding calendar year \n\line 26.4 that exceeds the amount of its allotment for the preceding year \n\line 26.5 that was used in the preceding year. The minimum allotment is \n\line 26.6 $100,000 {\ul for an allocation made prior to July 15}, regardless of \n\line 26.7 the amount used in the preceding calendar year{\ul , except that a} \n\line 26.8 {\ul city whose allocation in the preceding year was the minimum} \n\line 26.9 {\ul amount of $100,000 and who did not use at least 50 percent of} \n\line 26.10 {\ul its allocation from the preceding year is ineligible for an} \n\line 26.11 {\ul allocation in the immediate succeeding calendar year}. Each \n\line 26.12 local government unit in a consortium must meet the requirements \n\line 26.13 of this paragraph. \n\line 26.14 Sec. 28. Minnesota Statutes 2000, section 474A.061, \n\line 26.15 subdivision 2b, is amended to read: \n\line 26.16 Subd. 2b. [SMALL ISSUE POOL ALLOCATION.] {\strike On the first} \n\line 26.17 {\strike Monday in January that is a business day through the last Monday} \n\line 26.18 {\strike in July} {\ul Commencing on the second Tuesday in January and} \n\line 26.19 {\ul continuing on each Monday through the last Monday in July}, the \n\line 26.20 commissioner shall allocate available bonding authority from the \n\line 26.21 small issue pool {\strike on Monday of each week} to applications received \n\line 26.22 on or before the Monday of the preceding week {\ul for manufacturing} \n\line 26.23 {\ul projects and enterprise zone facility projects}. From the {\strike first} \n\line 26.24 {\strike Monday in January that is a business day} {\ul second Tuesday in} \n\line 26.25 {\ul January} through the last Monday in July, the commissioner shall \n\line 26.26 reserve $5,000,000 of the available bonding authority from the \n\line 26.27 small issue pool for applications for agricultural development \n\line 26.28 bond loan projects of the Minnesota rural finance authority. \n\line 26.29 {\ul Beginning in calendar year 2002, on the second Tuesday in} \n\line 26.30 {\ul January through the last Monday in July, the commissioner shall} \n\line 26.31 {\ul reserve $10,000,000 of available bonding authority in the small} \n\line 26.32 {\ul issue pool for applications for student loan bonds of or on} \n\line 26.33 {\ul behalf of the Minnesota higher education services office. The} \n\line 26.34 {\ul total amount of allocations for student loan bonds from the} \n\line 26.35 {\ul small issue pool may not exceed $10,000,000 per year.} \n\line 26.36 The commissioner shall reserve $10,000,000 until the day \n\line 27.1 after the last Monday in February, $10,000,000 until the day \n\line 27.2 after the last Monday in April, and $10,000,000 until the day \n\line 27.3 after the last Monday in June in the small issue pool \n\line 27.4 for {\ul enterprise zone facility projects and} manufacturing \n\line 27.5 projects. The amount of allocation provided to an issuer for a \n\line 27.6 specific {\ul enterprise zone facility project or} manufacturing \n\line 27.7 project will be based on the number of points received for the \n\line 27.8 proposed project under the scoring system under section \n\line 27.9 474A.045. {\strike Proposed projects that receive 50 points or more are} \n\line 27.10 {\strike eligible for all of the proposed allocation. Proposed projects} \n\line 27.11 {\strike that receive less than 50 points are eligible to receive a} \n\line 27.12 {\strike proportionally reduced share of the proposed authority, based} \n\line 27.13 {\strike upon the number of points received.} \n\line 27.14 If there are two or more applications for manufacturing {\ul and} \n\line 27.15 {\ul enterprise zone facility} projects from the small issue pool and \n\line 27.16 there is insufficient bonding authority to provide allocations \n\line 27.17 for all projects in any one week, the available bonding \n\line 27.18 authority shall be awarded based on the number of points awarded \n\line 27.19 a project under section 474A.045, with those projects receiving \n\line 27.20 the greatest number of points receiving allocation first. If \n\line 27.21 two or more applications receive an equal number of points, \n\line 27.22 available bonding authority shall be awarded by lot unless \n\line 27.23 otherwise agreed to by the respective issuers. \n\line 27.24 Sec. 29. Minnesota Statutes 2000, section 474A.061, \n\line 27.25 subdivision 2c, is amended to read: \n\line 27.26 Subd. 2c. [PUBLIC FACILITIES POOL ALLOCATION.] From the \n\line 27.27 beginning of the calendar year and continuing for a period of \n\line 27.28 120 days, the commissioner shall reserve {\strike $5,000,000} {\ul $3,000,000} \n\line 27.29 of the available bonding authority from the public facilities \n\line 27.30 pool for applications for public facilities projects to be \n\line 27.31 financed by the Western Lake Superior Sanitary District. {\strike On the} \n\line 27.32 {\strike first Monday in January that is a business day through the last} \n\line 27.33 {\strike Monday in July} {\ul Commencing on the second Tuesday in January and} \n\line 27.34 {\ul continuing on each Monday through the last Monday in July}, the \n\line 27.35 commissioner shall allocate available bonding authority from the \n\line 27.36 public facilities pool {\strike on Monday of each week} to applications \n\line 28.1 for eligible public facilities projects received on or before \n\line 28.2 the Monday of the preceding week. If there are two or more \n\line 28.3 applications for public facilities projects from the pool and \n\line 28.4 there is insufficient available bonding authority to provide \n\line 28.5 allocations for all projects in any one week, the available \n\line 28.6 bonding authority shall be awarded by lot unless otherwise \n\line 28.7 agreed to by the respective issuers. \n\line 28.8 Sec. 30. Minnesota Statutes 2000, section 474A.061, \n\line 28.9 subdivision 4, is amended to read: \n\line 28.10 Subd. 4. [RETURN OF ALLOCATION; DEPOSIT REFUND.] (a) If an \n\line 28.11 issuer that receives an allocation under this section determines \n\line 28.12 that it will not issue obligations equal to all or a portion of \n\line 28.13 the allocation received under this section within 120 days of \n\line 28.14 allocation or within the time period permitted by federal tax \n\line 28.15 law, whichever is less, the issuer must notify the department. \n\line 28.16 If the issuer notifies the department or the 120-day period \n\line 28.17 since allocation has expired prior to the last Monday in July, \n\line 28.18 the amount of allocation is canceled and returned for \n\line 28.19 reallocation through the pool from which it was originally \n\line 28.20 allocated. If the issuer notifies the department or the 120-day \n\line 28.21 period since allocation has expired on or after the last Monday \n\line 28.22 in July, the amount of allocation is canceled and returned for \n\line 28.23 reallocation through the unified pool. If the issuer notifies \n\line 28.24 the department after the last Monday in November, the amount of \n\line 28.25 allocation is canceled and returned for reallocation to the \n\line 28.26 Minnesota housing finance agency. To encourage a competitive \n\line 28.27 application process, the commissioner shall reserve, for new \n\line 28.28 applications, the amount of allocation that is canceled and \n\line 28.29 returned for reallocation under this section for a minimum of \n\line 28.30 seven calendar days. \n\line 28.31 (b) An issuer that returns for reallocation all or a \n\line 28.32 portion of an allocation received under this section within 120 \n\line 28.33 days of allocation shall receive within 30 days a refund equal \n\line 28.34 to: \n\line 28.35 (1) one-half of the application deposit for the amount of \n\line 28.36 bonding authority returned within 30 days of receiving \n\line 29.1 allocation; \n\line 29.2 (2) one-fourth of the application deposit for the amount of \n\line 29.3 bonding authority returned between 31 and 60 days of receiving \n\line 29.4 allocation; and \n\line 29.5 (3) one-eighth of the application deposit for the amount of \n\line 29.6 bonding authority returned between 61 and 120 days of receiving \n\line 29.7 allocation. \n\line 29.8 (c) No refund shall be available for allocations returned \n\line 29.9 120 or more days after receiving the allocation or beyond the \n\line 29.10 last Monday in November. {\strike This subdivision does not apply to the} \n\line 29.11 {\strike Minnesota housing finance agency or the Minnesota rural finance} \n\line 29.12 {\strike authority.} \n\line 29.13 Sec. 31. [474A.062] [HESO 120-DAY ISSUANCE EXEMPTION.] \n\line 29.14 {\ul The Minnesota higher education services office is exempt} \n\line 29.15 {\ul from the 120-day issuance requirements in this chapter and may} \n\line 29.16 {\ul carry forward allocations for student loan bonds into three} \n\line 29.17 {\ul successive calendar years, subject to carryforward notice} \n\line 29.18 {\ul requirements of section 474A.131, subdivision 2. The maximum} \n\line 29.19 {\ul cumulative carryforward is limited to $25,000,000.} \n\line 29.20 Sec. 32. Minnesota Statutes 2000, section 474A.091, \n\line 29.21 subdivision 2, is amended to read: \n\line 29.22 Subd. 2. [APPLICATION.] Issuers may apply for an \n\line 29.23 allocation under this section by submitting to the department an \n\line 29.24 application on forms provided by the department accompanied by \n\line 29.25 (1) a preliminary resolution, (2) a statement of bond counsel \n\line 29.26 that the proposed issue of obligations requires an allocation \n\line 29.27 under this chapter {\ul and the Internal Revenue Code}, (3) the type \n\line 29.28 of qualified bonds to be issued, (4) an application deposit in \n\line 29.29 the amount of two percent of the requested allocation, {\strike and} (5) a \n\line 29.30 public purpose scoring worksheet for manufacturing {\ul and} \n\line 29.31 {\ul enterprise zone} applications{\ul , and (6) for residential rental} \n\line 29.32 {\ul projects, a statement from the applicant or bond counsel as to} \n\line 29.33 {\ul whether the project preserves existing federally subsidized} \n\line 29.34 {\ul housing and whether the project is restricted to persons who are} \n\line 29.35 {\ul 55 years of age or older}. The issuer must pay the application \n\line 29.36 deposit by check. An entitlement issuer may not apply for an \n\line 30.1 allocation for public facility bonds, residential rental project \n\line 30.2 bonds, or mortgage bonds under this section unless it has either \n\line 30.3 permanently issued bonds equal to the amount of its entitlement \n\line 30.4 allocation for the current year plus any amount carried forward \n\line 30.5 from previous years or returned for reallocation all of its \n\line 30.6 unused entitlement allocation. For purposes of this \n\line 30.7 subdivision, its entitlement allocation includes an amount \n\line 30.8 obtained under section 474A.04, subdivision 6. \n\line 30.9 {\ul Notwithstanding the restrictions imposed on entitlement} \n\line 30.10 {\ul issuers under this subdivision,} the Minnesota housing finance \n\line 30.11 agency may not {\strike apply for} {\ul receive} an allocation for mortgage \n\line 30.12 bonds under this section {\strike until after} {\ul prior to} the {\strike last} {\ul first} \n\line 30.13 Monday in {\strike August. Notwithstanding the restrictions imposed on} \n\line 30.14 {\strike unified pool allocations after September 1 under subdivision 3,} \n\line 30.15 {\strike paragraph (c)(2), the Minnesota housing finance agency} {\ul October,} \n\line 30.16 {\ul but} may be awarded allocations for mortgage bonds from the \n\line 30.17 unified pool {\ul on or} after {\strike September 1} {\ul the first Monday in} \n\line 30.18 {\ul October}. The Minnesota housing finance agency, the Minnesota \n\line 30.19 higher education services office, and the Minnesota rural \n\line 30.20 finance authority may apply for and receive an allocation under \n\line 30.21 this section without submitting an application deposit. \n\line 30.22 Sec. 33. Minnesota Statutes 2000, section 474A.091, \n\line 30.23 subdivision 3, is amended to read: \n\line 30.24 Subd. 3. [ALLOCATION PROCEDURE.] (a) The commissioner \n\line 30.25 shall allocate available bonding authority under this section on \n\line 30.26 the Monday of every other week beginning with the first Monday \n\line 30.27 in August through and on the last Monday in November. \n\line 30.28 Applications for allocations must be received by the department \n\line 30.29 by {\ul 4:30 p.m. on} the Monday preceding the Monday on which \n\line 30.30 allocations are to be made. If a Monday falls on a holiday, the \n\line 30.31 allocation will be made or the applications must be received by \n\line 30.32 the next business day after the holiday. \n\line 30.33 {\strike (b) On or before September 1, allocations shall be awarded} \n\line 30.34 {\strike from the unified pool in the following order of priority:} \n\line 30.35 {\strike (1) applications for enterprise zone facility bonds;} \n\line 30.36 {\strike (2) applications for small issue bonds for manufacturing} \n\line 31.1 {\strike projects;} \n\line 31.2 {\strike (3) applications for small issue bonds for agricultural} \n\line 31.3 {\strike development bond loan projects;} \n\line 31.4 {\strike (4) applications for residential rental project bonds;} \n\line 31.5 {\strike (5) applications for public facility projects funded by} \n\line 31.6 {\strike public facility bonds;} \n\line 31.7 {\strike (6) applications for redevelopment bonds;} \n\line 31.8 {\strike (7) applications for mortgage bonds; and} \n\line 31.9 {\strike (8) applications for governmental bonds.} \n\line 31.10 {\strike Allocations for residential rental projects may only be} \n\line 31.11 {\strike made during the first allocation in August. The amount of} \n\line 31.12 {\strike allocation provided to an issuer for a specific manufacturing} \n\line 31.13 {\strike project will be based on the number of points received for the} \n\line 31.14 {\strike proposed project under the scoring system under section 474A.045.}\n\line 31.15 {\strike Proposed manufacturing projects that receive 50 points or more} \n\line 31.16 {\strike are eligible for all of the proposed allocation. Proposed} \n\line 31.17 {\strike manufacturing projects that receive less than 50 points under} \n\line 31.18 {\strike section 474A.045 are only eligible to receive a proportionally} \n\line 31.19 {\strike reduced share of the proposed authority, based upon the number} \n\line 31.20 {\strike of points received.} \n\line 31.21 {\ul (b) Prior to October 1, only the following applications} \n\line 31.22 {\ul shall be awarded allocations from the unified pool. Allocations} \n\line 31.23 {\ul shall be awarded in the following order of priority:} \n\line 31.24 {\ul (1) applications for residential rental project bonds;} \n\line 31.25 {\ul (2) applications for small issue bonds for manufacturing} \n\line 31.26 {\ul projects; and} \n\line 31.27 {\ul (3) applications for small issue bonds for agricultural} \n\line 31.28 {\ul development bond loan projects.} \n\line 31.29 {\ul (c) On the first Monday in October through the last Monday} \n\line 31.30 {\ul in November, allocations shall be awarded from the unified pool} \n\line 31.31 {\ul in the following order of priority:} \n\line 31.32 {\ul (1) applications for student loan bonds issued by or on} \n\line 31.33 {\ul behalf of the Minnesota higher education services office;} \n\line 31.34 {\ul (2) applications for mortgage bonds;} \n\line 31.35 {\ul (3) applications for public facility projects funded by} \n\line 31.36 {\ul public facility bonds;} \n\line 32.1 {\ul (4) applications for small issue bonds for manufacturing} \n\line 32.2 {\ul projects;} \n\line 32.3 {\ul (5) applications for small issue bonds for agricultural} \n\line 32.4 {\ul development bond loan projects;} \n\line 32.5 {\ul (6) applications for residential rental project bonds;} \n\line 32.6 {\ul (7) applications for enterprise zone facility bonds;} \n\line 32.7 {\ul (8) applications for governmental bonds; and} \n\line 32.8 {\ul (9) applications for redevelopment bonds.} \n\line 32.9 {\ul (d)} If there are two or more applications for manufacturing \n\line 32.10 projects from the unified pool and there is insufficient bonding \n\line 32.11 authority to provide allocations for all manufacturing projects \n\line 32.12 in any one allocation period, the available bonding authority \n\line 32.13 shall be awarded based on the number of points awarded a project \n\line 32.14 under section 474A.045 with those projects receiving the \n\line 32.15 greatest number of points receiving allocation first. If two or \n\line 32.16 more applications {\ul for manufacturing projects} receive an equal \n\line 32.17 amount of points, available bonding authority shall be awarded \n\line 32.18 by lot unless otherwise agreed to by the respective issuers. \n\line 32.19 {\ul (e) If there are two or more applications for enterprise} \n\line 32.20 {\ul zone facility projects from the unified pool and there is} \n\line 32.21 {\ul insufficient bonding authority to provide allocations for all} \n\line 32.22 {\ul enterprise zone facility projects in any one allocation period,} \n\line 32.23 {\ul the available bonding authority shall be awarded based on the} \n\line 32.24 {\ul number of points awarded a project under section 474A.045 with} \n\line 32.25 {\ul those projects receiving the greatest number of points receiving} \n\line 32.26 {\ul allocation first. If two or more applications for enterprise} \n\line 32.27 {\ul zone facility projects receive an equal amount of points,} \n\line 32.28 {\ul available bonding authority shall be awarded by lot unless} \n\line 32.29 {\ul otherwise agreed to by the respective issuers.} \n\line 32.30 {\ul (f) If there are two or more applications for residential} \n\line 32.31 {\ul rental projects from the unified pool and there is insufficient} \n\line 32.32 {\ul bonding authority to provide allocations for all residential} \n\line 32.33 {\ul rental projects in any one allocation period, the available} \n\line 32.34 {\ul bonding authority shall be awarded in the following order of} \n\line 32.35 {\ul priority: (1) projects that preserve existing federally} \n\line 32.36 {\ul subsidized housing; (2) projects that are not restricted to} \n\line 33.1 {\ul persons who are 55 years of age or older; and (3) other} \n\line 33.2 {\ul residential rental projects.} \n\line 33.3 {\strike (c)(1)} {\ul (g)} From the first Monday in August through the last \n\line 33.4 Monday in November, $20,000,000 of bonding authority or an \n\line 33.5 amount equal to the total annual amount of bonding authority \n\line 33.6 allocated to the small issue pool under section 474A.03, \n\line 33.7 subdivision 1, less the amount allocated to issuers from the \n\line 33.8 small issue pool for that year, whichever is less, is reserved \n\line 33.9 within the unified pool for small issue bonds to the extent such \n\line 33.10 amounts are available within the unified pool. {\strike On the first} \n\line 33.11 {\strike Monday in September through the last Monday in November,} \n\line 33.12 {\strike $2,500,000 of bonding authority or an amount equal to the total} \n\line 33.13 {\strike annual amount of bonding authority allocated to the public} \n\line 33.14 {\strike facilities pool under section 474A.03, subdivision 1, less the} \n\line 33.15 {\strike amount allocated to issuers from the public facilities pool for} \n\line 33.16 {\strike that year, whichever is less, is reserved within the unified} \n\line 33.17 {\strike pool for public facility bonds to the extent such amounts are} \n\line 33.18 {\strike available within the unified pool.} \n\line 33.19 {\strike (2)} {\ul (h)} The total amount of allocations for mortgage bonds \n\line 33.20 from the housing pool and the unified pool may not exceed: \n\line 33.21 {\strike (i)} {\ul (1)} $10,000,000 for any one city; or \n\line 33.22 {\strike (ii)} {\ul (2)} $20,000,000 for any number of cities in any one \n\line 33.23 county. \n\line 33.24 {\strike An allocation for mortgage bonds may be used for mortgage} \n\line 33.25 {\strike credit certificates.} \n\line 33.26 {\strike (d) After September 1, allocations shall be awarded from} \n\line 33.27 {\strike the unified pool only for the following types of qualified bonds:}\n\line 33.28 {\strike small issue bonds, public facility bonds to finance publicly} \n\line 33.29 {\strike owned facility projects, residential rental project bonds, and} \n\line 33.30 {\strike enterprise zone facility bonds.} \n\line 33.31 {\ul (i) The total amount of allocations for student loan bonds} \n\line 33.32 {\ul from the unified pool may not exceed $10,000,000 per year.} \n\line 33.33 {\ul (j)} If there is insufficient bonding authority to fund all \n\line 33.34 projects within any qualified bond category {\ul other than} \n\line 33.35 {\ul enterprise zone facility projects, manufacturing projects, and} \n\line 33.36 {\ul residential rental projects}, allocations shall be awarded by lot \n\line 34.1 unless otherwise agreed to by the respective issuers. \n\line 34.2 {\ul (k)} If an application is rejected, the commissioner must \n\line 34.3 notify the applicant and return the application deposit to the \n\line 34.4 applicant within 30 days unless the applicant requests in \n\line 34.5 writing that the application be resubmitted. \n\line 34.6 {\ul (l)} The granting of an allocation of bonding authority \n\line 34.7 under this section must be evidenced by issuance of a \n\line 34.8 certificate of allocation. \n\line 34.9 Sec. 34. Minnesota Statutes 2000, section 474A.091, is \n\line 34.10 amended by adding a subdivision to read: \n\line 34.11 {\ul Subd. 3a.} [MORTGAGE BONDS.] {\ul (a) Bonding authority} \n\line 34.12 {\ul remaining in the unified pool on October 1 is available for} \n\line 34.13 {\ul single-family housing programs for cities that applied in} \n\line 34.14 {\ul January and received an allocation under section 474A.061,} \n\line 34.15 {\ul subdivision 2a, in the same calendar year. The Minnesota} \n\line 34.16 {\ul housing finance agency shall receive an allocation for mortgage} \n\line 34.17 {\ul bonds pursuant to this section, minus any amounts for a city or} \n\line 34.18 {\ul consortium that intends to issue bonds on its own behalf under} \n\line 34.19 {\ul paragraph (c).} \n\line 34.20 {\ul (b) The agency may issue bonds on behalf of participating} \n\line 34.21 {\ul cities. The agency shall request an allocation from the} \n\line 34.22 {\ul commissioner for all applicants who choose to have the agency} \n\line 34.23 {\ul issue bonds on their behalf and the commissioner shall allocate} \n\line 34.24 {\ul the requested amount to the agency. Allocations shall be} \n\line 34.25 {\ul awarded by the commissioner each Monday commencing on the first} \n\line 34.26 {\ul Monday in October through the last Monday in November for} \n\line 34.27 {\ul applications received by 4:30 p.m. on the Monday of the week} \n\line 34.28 {\ul preceding an allocation.} \n\line 34.29 {\ul For cities who choose to have the agency issue bonds on} \n\line 34.30 {\ul their behalf, allocations will be made loan by loan, on a first} \n\line 34.31 {\ul come, first served basis among the cities. The agency shall} \n\line 34.32 {\ul submit an application fee pursuant to section 474A.03,} \n\line 34.33 {\ul subdivision 4, and an application deposit equal to two percent} \n\line 34.34 {\ul of the requested allocation to the commissioner when requesting} \n\line 34.35 {\ul an allocation from the unified pool. After awarding an} \n\line 34.36 {\ul allocation and receiving a notice of issuance for mortgage bonds} \n\line 35.1 {\ul issued on behalf of the participating cities, the commissioner} \n\line 35.2 {\ul shall transfer the application deposit to the Minnesota housing} \n\line 35.3 {\ul finance agency.} \n\line 35.4 {\ul For purposes of paragraphs (a) to (d), "city" means a} \n\line 35.5 {\ul county or a consortium of local government units that agree} \n\line 35.6 {\ul through a joint powers agreement to apply together for} \n\line 35.7 {\ul single-family housing programs, and has the meaning given it in} \n\line 35.8 {\ul section 462C.02, subdivision 6. "Agency" means the Minnesota} \n\line 35.9 {\ul housing finance agency.} \n\line 35.10 {\ul (c) Any city that received an allocation pursuant to} \n\line 35.11 {\ul section 474A.061, subdivision 2a, paragraph (f), in the current} \n\line 35.12 {\ul year that wishes to receive an additional allocation from the} \n\line 35.13 {\ul unified pool and issue bonds on its own behalf or pursuant to a} \n\line 35.14 {\ul joint powers agreement shall notify the Minnesota housing} \n\line 35.15 {\ul finance agency by the third Monday in September. The total} \n\line 35.16 {\ul amount of allocation for mortgage bonds for a city choosing to} \n\line 35.17 {\ul issue bonds on its own behalf or through a joint powers} \n\line 35.18 {\ul agreement is limited to the lesser of: (i) the amount} \n\line 35.19 {\ul requested, or (ii) the product of the total amount available for} \n\line 35.20 {\ul mortgage bonds from the unified pool, multiplied by the ratio of} \n\line 35.21 {\ul the population of each city that applied in January and received} \n\line 35.22 {\ul an allocation under section 474A.061, subdivision 2a, in the} \n\line 35.23 {\ul same calendar year, as determined by the most recent estimate of} \n\line 35.24 {\ul the city's population released by the state demographer's office} \n\line 35.25 {\ul to the total of the population of all the cities that applied in} \n\line 35.26 {\ul January and received an allocation under section 474A.061,} \n\line 35.27 {\ul subdivision 2a, in the same calendar year. If a city choosing} \n\line 35.28 {\ul to issue bonds on its own behalf or through a joint powers} \n\line 35.29 {\ul agreement is located within a county that has also chosen to} \n\line 35.30 {\ul issue bonds on its own behalf or through a joint powers} \n\line 35.31 {\ul agreement, the city's population will be deducted from the} \n\line 35.32 {\ul county's population in calculating the amount of allocations} \n\line 35.33 {\ul under this paragraph.} \n\line 35.34 {\ul The Minnesota housing finance agency shall notify each city} \n\line 35.35 {\ul choosing to issue bonds on its own behalf or pursuant to a joint} \n\line 35.36 {\ul powers agreement of the amount of its allocation by October 15.} \n\line 36.1 {\ul Upon determining the amount of the allocation of each choosing} \n\line 36.2 {\ul to issue bonds on its own behalf or through a joint powers} \n\line 36.3 {\ul agreement, the agency shall forward a list specifying the} \n\line 36.4 {\ul amounts allotted to each city.} \n\line 36.5 {\ul A city that chooses to issue bonds on its own behalf or} \n\line 36.6 {\ul through a joint powers agreement may request an allocation from} \n\line 36.7 {\ul the commissioner by forwarding an application with an} \n\line 36.8 {\ul application fee pursuant to section 474A.03, subdivision 4, and} \n\line 36.9 {\ul an application deposit equal to two percent of the requested} \n\line 36.10 {\ul amount to the commissioner no later than 4:30 p.m. on the Monday} \n\line 36.11 {\ul of the week preceding an allocation. Allocations to cities that} \n\line 36.12 {\ul choose to issue bonds on their own behalf shall be awarded by} \n\line 36.13 {\ul the commissioner on the first Monday after October 15 through} \n\line 36.14 {\ul the last Monday in November. No city may receive an allocation} \n\line 36.15 {\ul from the commissioner after the last Monday in November. The} \n\line 36.16 {\ul commissioner shall allocate the requested amount to the city or} \n\line 36.17 {\ul cities subject to the limitations under this subdivision.} \n\line 36.18 {\ul If a city issues mortgage bonds from an allocation received} \n\line 36.19 {\ul under this paragraph, the issuer must provide for the recycling} \n\line 36.20 {\ul of funds into new loans. If the issuer is not able to provide} \n\line 36.21 {\ul for recycling, the issuer must notify the commissioner in} \n\line 36.22 {\ul writing of the reason that recycling was not possible and the} \n\line 36.23 {\ul reason the issuer elected not to have the Minnesota housing} \n\line 36.24 {\ul finance agency issue the bonds. "Recycling" means the use of} \n\line 36.25 {\ul money generated from the repayment and prepayment of loans for} \n\line 36.26 {\ul further eligible loans or for the redemption of bonds and the} \n\line 36.27 {\ul issuance of current refunding bonds.} \n\line 36.28 {\ul (d) No entitlement city or county or city in an entitlement} \n\line 36.29 {\ul county may apply for or be allocated authority to issue mortgage} \n\line 36.30 {\ul bonds or use mortgage credit certificates from the unified pool.} \n\line 36.31 {\ul (e) An allocation awarded to the agency for mortgage bonds} \n\line 36.32 {\ul under this section may be carried forward by the agency into the} \n\line 36.33 {\ul next succeeding calendar year subject to notice requirements} \n\line 36.34 {\ul under section 474A.131 and is available until the last business} \n\line 36.35 {\ul day in December of that succeeding calendar year.} \n\line 36.36 Sec. 35. Minnesota Statutes 2000, section 474A.091, \n\line 37.1 subdivision 4, is amended to read: \n\line 37.2 Subd. 4. [{\strike MORTGAGE BONDS} {\ul REMAINING BONDING AUTHORITY}.] All \n\line 37.3 remaining bonding authority available for allocation under this \n\line 37.4 section on December 1, is allocated to the Minnesota housing \n\line 37.5 finance agency. \n\line 37.6 Sec. 36. Minnesota Statutes 2000, section 474A.091, \n\line 37.7 subdivision 5, is amended to read: \n\line 37.8 Subd. 5. [RETURN OF ALLOCATION; DEPOSIT REFUND.] (a) If an \n\line 37.9 issuer that receives an allocation under this section determines \n\line 37.10 that it will not issue obligations equal to all or a portion of \n\line 37.11 the allocation received under this section within 120 days of \n\line 37.12 the allocation or within the time period permitted by federal \n\line 37.13 tax law, whichever is less, the issuer must notify the \n\line 37.14 department. If the issuer notifies the department or the \n\line 37.15 120-day period since allocation has expired prior to the last \n\line 37.16 Monday in November, the amount of allocation is canceled and \n\line 37.17 returned for reallocation through the unified pool. If the \n\line 37.18 issuer notifies the department on or after the last Monday in \n\line 37.19 November, the amount of allocation is canceled and returned for \n\line 37.20 reallocation to the Minnesota housing finance agency. To \n\line 37.21 encourage a competitive application process, the commissioner \n\line 37.22 shall reserve, for new applications, the amount of allocation \n\line 37.23 that is canceled and returned for reallocation under this \n\line 37.24 section for a minimum of seven calendar days. \n\line 37.25 (b) An issuer that returns for reallocation all or a \n\line 37.26 portion of an allocation received under this section within 120 \n\line 37.27 days of the allocation shall receive within 30 days a refund \n\line 37.28 equal to: \n\line 37.29 (1) one-half of the application deposit for the amount of \n\line 37.30 bonding authority returned within 30 days of receiving the \n\line 37.31 allocation; \n\line 37.32 (2) one-fourth of the application deposit for the amount of \n\line 37.33 bonding authority returned between 31 and 60 days of receiving \n\line 37.34 the allocation; and \n\line 37.35 (3) one-eighth of the application deposit for the amount of \n\line 37.36 bonding authority returned between 61 and 120 days of receiving \n\line 38.1 the allocation. \n\line 38.2 (c) No refund of the application deposit shall be available \n\line 38.3 for allocations returned on or after the last Monday in November.\n\line 38.4 {\strike This subdivision does not apply to the Minnesota housing finance} \n\line 38.5 {\strike agency, or the Minnesota rural finance authority.} \n\line 38.6 Sec. 37. Minnesota Statutes 2000, section 474A.091, \n\line 38.7 subdivision 6, is amended to read: \n\line 38.8 Subd. 6. [FINAL ALLOCATION; CARRYFORWARD.] {\ul Notwithstanding} \n\line 38.9 {\ul the notice requirements of section 474A.131, subdivision 2,} any \n\line 38.10 bonding authority remaining unissued by the Minnesota housing \n\line 38.11 finance agency {\ul on the last business day in December} shall be \n\line 38.12 carried forward into the next calendar year by {\ul the commissioner} \n\line 38.13 {\ul for} the Minnesota housing finance agency {\strike in accordance with} \n\line 38.14 {\strike section 474A.131, subdivision 2}. \n\line 38.15 Sec. 38. Minnesota Statutes 2000, section 474A.131, \n\line 38.16 subdivision 1, is amended to read: \n\line 38.17 Subdivision 1. [NOTICE OF ISSUE.] Each issuer that issues \n\line 38.18 bonds with an allocation received under this chapter shall \n\line 38.19 provide a notice of issue to the department on forms provided by \n\line 38.20 the department stating: \n\line 38.21 (1) the date of issuance of the bonds; \n\line 38.22 (2) the title of the issue; \n\line 38.23 (3) the principal amount of the bonds; \n\line 38.24 (4) the type of qualified bonds under federal tax law; {\strike and} \n\line 38.25 (5) the dollar amount of the bonds issued that were subject \n\line 38.26 to the annual volume cap{\ul ; and} \n\line 38.27 {\ul (6) for entitlement issuers, whether the allocation is from} \n\line 38.28 {\ul current year entitlement authority or is from carry forward} \n\line 38.29 {\ul authority}. \n\line 38.30 For obligations that are issued as a part of a series of \n\line 38.31 obligations, a notice must be provided for each series. A \n\line 38.32 penalty of one-half of the amount of the application deposit not \n\line 38.33 to exceed $5,000 shall apply to any issue of obligations for \n\line 38.34 which a notice of issue is not provided to the department within \n\line 38.35 five business days after issuance or before the last Monday in \n\line 38.36 December, whichever occurs first. Within 30 days after receipt \n\line 39.1 of a notice of issue the department shall refund a portion of \n\line 39.2 the application deposit equal to one percent of the amount of \n\line 39.3 the bonding authority actually issued if a one percent \n\line 39.4 application deposit was made, or equal to two percent of the \n\line 39.5 amount of the bonding authority actually issued if a two percent \n\line 39.6 application deposit was made, less any penalty amount. \n\line 39.7 Sec. 39. Minnesota Statutes 2000, section 474A.131, is \n\line 39.8 amended by adding a subdivision to read: \n\line 39.9 {\ul Subd. 1b.} [DEADLINE FOR ISSUANCE OF QUALIFIED BONDS.] {\ul If} \n\line 39.10 {\ul an issuer fails to notify the department before 4:30 p.m. on the} \n\line 39.11 {\ul last business day in December of issuance of obligations} \n\line 39.12 {\ul pursuant to an allocation received for any qualified bond} \n\line 39.13 {\ul project or issuance of an entitlement allocation, the allocation} \n\line 39.14 {\ul is canceled and the bonding authority is allocated to the} \n\line 39.15 {\ul Minnesota housing finance agency for carryforward by the} \n\line 39.16 {\ul commissioner under section 474A.091, subdivision 6.} \n\line 39.17 Sec. 40. Minnesota Statutes 2000, section 474A.131, \n\line 39.18 subdivision 2, is amended to read: \n\line 39.19 Subd. 2. [CARRYFORWARD NOTICE.] If an issuer intends to \n\line 39.20 carry forward an allocation received under this chapter, it must \n\line 39.21 notify the department in writing before {\ul 4:30 p.m. on} the last \n\line 39.22 {\strike Monday of} {\ul business day in} December. {\ul This notice requirement} \n\line 39.23 {\ul does not apply to the Minnesota housing finance agency for the} \n\line 39.24 {\ul carryforward of unallocated unified pool balances.} \n\line 39.25 Sec. 41. Minnesota Statutes 2000, section 474A.14, is \n\line 39.26 amended to read: \n\line 39.27 474A.14 [NOTICE OF AVAILABLE AUTHORITY.] \n\line 39.28 The department shall {\strike publish in the State Register a} \n\line 39.29 {\ul provide at its official Web site a written} notice of the amount \n\line 39.30 of bonding authority in the housing, small issue, and public \n\line 39.31 facilities pools as soon after January 1 as possible. The \n\line 39.32 department shall {\strike publish in the State Register a} {\ul provide at its} \n\line 39.33 {\ul official Web site a written} notice of the amount of bonding \n\line 39.34 authority available for allocation in the unified pool as soon \n\line 39.35 after August 1 as possible. \n\line 39.36 Sec. 42. Minnesota Statutes 2000, section 475.54, \n\line 40.1 subdivision 1, is amended to read: \n\line 40.2 Subdivision 1. [IN INSTALLMENTS; EXCEPTION; ANNUAL LIMIT.] \n\line 40.3 Except as provided in subdivision 3, 5a, 15, or 17, or as \n\line 40.4 expressly authorized in another law, all obligations of each \n\line 40.5 issue shall mature or be subject to mandatory sinking fund \n\line 40.6 redemption in installments, the first not later than three years \n\line 40.7 and the last not later than 30 years from the date of the issue; \n\line 40.8 or 40 years or the useful life of the asset, whichever is less, \n\line 40.9 for municipal water and wastewater treatment systems and \n\line 40.10 essential community facilities financed or guaranteed by the \n\line 40.11 United States Department of Agriculture. No amount of principal \n\line 40.12 of the issue payable in any calendar year shall exceed {\strike five} \n\line 40.13 {\strike times the} {\ul an} amount {\strike of} {\ul equal to} the smallest amount payable in \n\line 40.14 any preceding calendar year ending three years or more after the \n\line 40.15 issue date {\ul multiplied:} \n\line 40.16 {\ul (1) by five, in the case of obligations maturing not later} \n\line 40.17 {\ul than 25 years from the date of issue; and} \n\line 40.18 {\ul (2) by six, in the case of obligations maturing 25 years or} \n\line 40.19 {\ul later from the date of issue}. \n\line 40.20 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 40.21 {\ul following final enactment.} \n\line 40.22 Sec. 43. Minnesota Statutes 2000, section 475.58, \n\line 40.23 subdivision 1, is amended to read: \n\line 40.24 Subdivision 1. [APPROVAL BY ELECTORS; EXCEPTIONS.] \n\line 40.25 Obligations authorized by law or charter may be issued by any \n\line 40.26 municipality upon obtaining the approval of a majority of the \n\line 40.27 electors voting on the question of issuing the obligations, but \n\line 40.28 an election shall not be required to authorize obligations \n\line 40.29 issued: \n\line 40.30 (1) to pay any unpaid judgment against the municipality; \n\line 40.31 (2) for refunding obligations; \n\line 40.32 (3) for an improvement or improvement program, which \n\line 40.33 obligation is payable wholly or partly from the proceeds of \n\line 40.34 special assessments levied upon property specially benefited by \n\line 40.35 the improvement or by an improvement within the improvement \n\line 40.36 program, or of taxes levied upon the increased value of property \n\line 41.1 within a district for the development of which the improvement \n\line 41.2 is undertaken, including obligations which are the general \n\line 41.3 obligations of the municipality, if the municipality is entitled \n\line 41.4 to reimbursement in whole or in part from the proceeds of such \n\line 41.5 special assessments or taxes and not less than 20 percent of the \n\line 41.6 cost of the improvement or the improvement program is to be \n\line 41.7 assessed against benefited property or is to be paid from the \n\line 41.8 proceeds of federal grant funds or a combination thereof, or is \n\line 41.9 estimated to be received from such taxes within the district; \n\line 41.10 (4) payable wholly from the income of revenue producing \n\line 41.11 conveniences; \n\line 41.12 (5) under the provisions of a home rule charter which \n\line 41.13 permits the issuance of obligations of the municipality without \n\line 41.14 election; \n\line 41.15 (6) under the provisions of a law which permits the \n\line 41.16 issuance of obligations of a municipality without an election; \n\line 41.17 (7) to fund pension or retirement fund liabilities pursuant \n\line 41.18 to section 475.52, subdivision 6; \n\line 41.19 (8) under a capital improvement plan under section \n\line 41.20 373.40; {\ul and} \n\line 41.21 (9) {\strike to fund facilities as provided in subdivision 3; and} \n\line 41.22 {\strike (10)} under sections 469.1813 to 469.1815 (property tax \n\line 41.23 abatement authority bonds). \n\line 41.24 Sec. 44. Minnesota Statutes 2000, section 475.59, is \n\line 41.25 amended to read: \n\line 41.26 475.59 [MANNER OF SUBMISSION; NOTICE.] \n\line 41.27 When the governing body of a municipality resolves to issue \n\line 41.28 bonds for any purpose requiring the approval of the electors, it \n\line 41.29 shall provide for submission of the proposition of their \n\line 41.30 issuance at a general or special election or town or school \n\line 41.31 district meeting. Notice of such election or meeting shall be \n\line 41.32 given in the manner required by law and shall state the maximum \n\line 41.33 amount and the purpose of the proposed issue. In any school \n\line 41.34 district, the school board or board of education may, according \n\line 41.35 to its judgment and discretion, submit as a single ballot \n\line 41.36 question or as two or more separate questions in the notice of \n\line 42.1 election and ballots the proposition of their issuance for any \n\line 42.2 one or more of the following, stated conjunctively or in the \n\line 42.3 alternative: acquisition or enlargement of sites, acquisition, \n\line 42.4 betterment, erection, furnishing, equipping of one or more new \n\line 42.5 schoolhouses, remodeling, repairing, improving, adding to, \n\line 42.6 betterment, furnishing, equipping of one or more existing \n\line 42.7 schoolhouses. {\ul In any city, town, or county, the governing body} \n\line 42.8 {\ul may, according to its judgment and discretion, submit as a} \n\line 42.9 {\ul single ballot question or as two or more separate questions in} \n\line 42.10 {\ul the notice of election and ballots the proposition of their} \n\line 42.11 {\ul issuance, stated conjunctively or in the alternative, for the} \n\line 42.12 {\ul acquisition, construction, or improvement of any facilities at} \n\line 42.13 {\ul one or more locations.} \n\line 42.14 Sec. 45. Laws 1974, chapter 473, is amended to read: \n\line 42.15 Section 1. [SCOTT COUNTY; HOUSING AND REDEVELOPMENT \n\line 42.16 AUTHORITY.] There is hereby created in Scott county a public \n\line 42.17 body corporate and politic, to be known as the Scott county \n\line 42.18 housing and redevelopment authority, having all of the powers \n\line 42.19 and duties of a housing and redevelopment authority under the \n\line 42.20 provisions of {\strike the municipal housing and redevelopment act,} \n\line 42.21 Minnesota Statutes, Sections {\strike 462.411 to 462.711, and acts} \n\line 42.22 {\strike amendatory thereof; which act applies to the county of} \n\line 42.23 {\strike Scott} {\ul 469.001 to 469.047, and having those powers of an economic} \n\line 42.24 {\ul development authority under the provisions of Minnesota} \n\line 42.25 {\ul Statutes, sections 469.090 to 469.180 as are granted to it by} \n\line 42.26 {\ul Scott county as provided below}. For the purposes of applying \n\line 42.27 the provisions of {\strike the municipal housing and redevelopment} \n\line 42.28 {\strike act} {\ul Minnesota Statutes, sections 469.001 to 469.047 and 469.090} \n\line 42.29 {\ul to 469.180,} to Scott county, the county has all the powers and \n\line 42.30 duties of a municipality, the county board has all of the powers \n\line 42.31 and duties of a governing body, the chairman of the county board \n\line 42.32 has all of the powers and duties of a mayor, and the area of \n\line 42.33 operation includes the area within the territorial boundaries of \n\line 42.34 the county. \n\line 42.35 Sec. 2. [APPLICATION.] Subdivision 1. This act shall not \n\line 42.36 limit or restrict any existing housing and redevelopment \n\line 43.1 authority or prevent a municipality from creating an authority. \n\line 43.2 {\strike The county shall not exercise jurisdiction in any municipality} \n\line 43.3 {\strike where a municipal housing and redevelopment authority is} \n\line 43.4 {\strike established.} \n\line 43.5 Subd. 2. A municipal housing and redevelopment authority \n\line 43.6 may request the Scott county housing and redevelopment authority \n\line 43.7 to handle the housing duties of the authority and, in such an \n\line 43.8 event, the Scott county housing and redevelopment authority \n\line 43.9 shall act and have exclusive jurisdiction for housing in the \n\line 43.10 municipality pursuant to the provisions of {\strike the municipal housing} \n\line 43.11 {\strike and redevelopment act,} Minnesota Statutes, Sections {\strike 462.411 to} \n\line 43.12 {\strike 462.711, and acts amendatory thereof} {\ul 469.001 to 469.047}. A \n\line 43.13 transfer of duties relating to housing shall not transfer any \n\line 43.14 duties relating to redevelopment. \n\line 43.15 Sec. 3. [MUNICIPAL APPROVAL.] If any housing or \n\line 43.16 redevelopment project is undertaken in Scott county pursuant to \n\line 43.17 this authorization, and such project is within the boundaries of \n\line 43.18 any incorporated village, city or township, the location of such \n\line 43.19 project shall be approved by the governing body of such village, \n\line 43.20 city or township. \n\line 43.21 {\ul Sec. 4.} [ECONOMIC DEVELOPMENT AUTHORITY POWERS.] {\ul The Scott} \n\line 43.22 {\ul county housing and redevelopment authority may exercise any of} \n\line 43.23 {\ul the powers of an economic development authority (EDA) granted to} \n\line 43.24 {\ul it by resolution by the Scott county board of commissioners,} \n\line 43.25 {\ul except for the authority to levy the tax described in Minnesota} \n\line 43.26 {\ul Statutes, section 469.107. With the prior approval of the Scott} \n\line 43.27 {\ul county board the authority may increase its levy of the special} \n\line 43.28 {\ul tax described in Minnesota Statutes, section 469.033,} \n\line 43.29 {\ul subdivision 6, to an amount not exceeding 0.01813 percent of} \n\line 43.30 {\ul taxable market value, or any higher limit from time to time} \n\line 43.31 {\ul authorized under Minnesota Statutes, section 469.107 or 469.033,} \n\line 43.32 {\ul subdivision 6.} \n\line 43.33 {\ul Sec. 5.} [OFFERS OF TAX-FORFEITED LANDS.] {\ul Scott county may} \n\line 43.34 {\ul offer to the Scott county housing and redevelopment authority,} \n\line 43.35 {\ul under the conditions and policies established by the county, and} \n\line 43.36 {\ul subject to the approval of the city in which the property is} \n\line 44.1 {\ul located, nonconservation tax-forfeited land prior to making the} \n\line 44.2 {\ul properties available to cities in Scott county.} \n\line 44.3 {\strike Sec. 4.} {\ul Sec. 6.} [EFFECTIVE DATE{\ul ; LOCAL APPROVAL}.] {\strike This act} \n\line 44.4 {\strike takes effect when approved by a majority of the board of county} \n\line 44.5 {\strike commissioners of Scott county and upon compliance with Minnesota} \n\line 44.6 {\strike Statutes, Section 645.021} {\ul This act is effective the day after} \n\line 44.7 {\ul the governing body of Scott county and its chief clerical} \n\line 44.8 {\ul officer timely complete their compliance with Minnesota} \n\line 44.9 {\ul Statutes, section 645.021, subdivisions 2 and 3}. \n\line 44.10 Sec. 46. Laws 1980, chapter 482, is amended to read: \n\line 44.11 Section 1. [CARVER COUNTY; HOUSING AND REDEVELOPMENT.] \n\line 44.12 Subdivision 1. There is created in the county of Carver a \n\line 44.13 public body corporate and politic, to be known as the Carver \n\line 44.14 county housing and redevelopment authority, having all of the \n\line 44.15 powers and duties of a housing and redevelopment authority under \n\line 44.16 the provisions of {\strike the municipal housing and redevelopment act,} \n\line 44.17 Minnesota Statutes, {\strike Section 462.411 to 462.711} {\ul sections 469.001} \n\line 44.18 {\ul to 469.047, and having those powers of an economic development} \n\line 44.19 {\ul authority under the provisions of Minnesota Statutes, sections} \n\line 44.20 {\ul 469.090 to 469.1082, as are granted to it by Carver county as} \n\line 44.21 {\ul provided in sections 2 to 4}. For the purposes of applying the \n\line 44.22 provisions of {\strike the municipal housing and redevelopment} \n\line 44.23 {\strike act} {\ul Minnesota Statutes, sections 469.001 to 469.047 and 469.090} \n\line 44.24 {\ul to 469.1082,} to Carver county, the county has all of the powers \n\line 44.25 and duties of a municipality, the county board has all of the \n\line 44.26 powers and duties of a governing body, the chairman of the \n\line 44.27 county board has all of the powers and duties of a mayor, and \n\line 44.28 the area of operation includes the area within the territorial \n\line 44.29 boundaries of the county. \n\line 44.30 Subd. 2. This section shall not limit or restrict any \n\line 44.31 existing housing and redevelopment authority or prevent a \n\line 44.32 municipality from creating an authority. {\strike The county shall not} \n\line 44.33 {\strike exercise jurisdiction in any municipality where a municipal} \n\line 44.34 {\strike housing and redevelopment authority is established.} If a \n\line 44.35 municipal housing and redevelopment authority requests the \n\line 44.36 Carver county housing and redevelopment authority to handle the \n\line 45.1 housing duties of the municipal authority, the Carver county \n\line 45.2 housing and redevelopment authority shall act and have exclusive \n\line 45.3 jurisdiction for housing in the municipality. A transfer of \n\line 45.4 duties relating to housing shall not transfer any duties \n\line 45.5 relating to redevelopment. \n\line 45.6 {\ul Sec. 2.} [ECONOMIC DEVELOPMENT AUTHORITY POWERS.] {\ul The} \n\line 45.7 {\ul Carver county housing and redevelopment authority may exercise} \n\line 45.8 {\ul any of the powers of an economic development authority granted} \n\line 45.9 {\ul to it by resolution by the Carver county board of commissioners,} \n\line 45.10 {\ul except for the authority to levy the tax described in Minnesota} \n\line 45.11 {\ul Statutes, section 469.107. With the prior approval of the} \n\line 45.12 {\ul Carver county board, the authority may increase its levy of the} \n\line 45.13 {\ul special tax described in Minnesota Statutes, section 469.033,} \n\line 45.14 {\ul subdivision 6, to an amount not exceeding 0.01813 percent of} \n\line 45.15 {\ul taxable market value, or any higher limit from time to time,} \n\line 45.16 {\ul authorized under Minnesota Statutes, section 469.107 or 469.033,} \n\line 45.17 {\ul subdivision 6.} \n\line 45.18 {\ul Sec. 3.} [OFFERS OF TAX-FORFEITED LANDS.] {\ul Carver county may} \n\line 45.19 {\ul offer to the Carver county housing and redevelopment authority,} \n\line 45.20 {\ul under the conditions and policies established by the county, and} \n\line 45.21 {\ul subject to the approval of the city in which the property is} \n\line 45.22 {\ul located, nonconservation tax-forfeited land prior to making the} \n\line 45.23 {\ul properties available to cities in Carver county.} \n\line 45.24 {\strike Sec. 2.} {\ul Sec. 4.} [LOCAL APPROVAL.] Before a housing or \n\line 45.25 redevelopment project of the Carver county housing and \n\line 45.26 redevelopment authority is undertaken, the project shall be \n\line 45.27 approved by the local governing body with jurisdiction over all \n\line 45.28 or any part of the area in which the proposed project is located.\n\line 45.29 {\strike Sec. 3.} {\ul Sec. 5.} [EFFECTIVE DATE{\ul ; LOCAL APPROVAL}.] This \n\line 45.30 act {\strike is effective upon} {\ul takes effect} the day {\strike of compliance} {\ul after} \n\line 45.31 {\ul the governing body of Carver county complies} with Minnesota \n\line 45.32 Statutes, Section 645.021, {\strike Subdivision 3} {\ul subdivisions 2 and 3}. \n\line 45.33 Sec. 47. [CHISAGO LAKES JOINT SEWAGE TREATMENT COMMISSION \n\line 45.34 BONDING AUTHORITY.] \n\line 45.35 {\ul Subdivision 1.} [AUTHORITY.] {\ul Notwithstanding Minnesota} \n\line 45.36 {\ul Statutes, section 471.59, subdivision 11, the Chisago lakes} \n\line 46.1 {\ul joint sewage treatment commission, a joint powers board} \n\line 46.2 {\ul established by the county of Chisago, and the cities of} \n\line 46.3 {\ul Lindstrom, Chisago City, and Center City, to own and operate} \n\line 46.4 {\ul wastewater treatment facilities for the member local} \n\line 46.5 {\ul governments, may issue and sell general obligation bonds} \n\line 46.6 {\ul pursuant to Minnesota Statutes, sections 115.46 and 444.075, and} \n\line 46.7 {\ul chapter 475, to acquire land for, construct, expand, furnish,} \n\line 46.8 {\ul equip, and modify its wastewater treatment facilities, and} \n\line 46.9 {\ul pledge the full faith and credit and taxing power of the} \n\line 46.10 {\ul governmental units that are members of the joint powers board.} \n\line 46.11 {\ul Bonds issued under this section are not subject to Minnesota} \n\line 46.12 {\ul Statutes, section 475.58. The joint powers board is a} \n\line 46.13 {\ul municipality within the meaning of Minnesota Statutes, chapter} \n\line 46.14 {\ul 475. Each government unit that is a member of the joint powers} \n\line 46.15 {\ul board must adopt a resolution authorizing the joint powers board} \n\line 46.16 {\ul to issue and sell the bonds.} \n\line 46.17 {\ul Subd. 2.} [EFFECTIVE DATE; NO LOCAL APPROVAL.] {\ul This section} \n\line 46.18 {\ul is effective the day following final enactment and does not} \n\line 46.19 {\ul require local approval, as provided in Minnesota Statutes,} \n\line 46.20 {\ul section 645.023, subdivision 1, paragraph (a).} \n\line 46.21 Sec. 48. [HASSAN TOWNSHIP; ECONOMIC DEVELOPMENT AUTHORITY; \n\line 46.22 ESTABLISHMENT AND POWERS.] \n\line 46.23 {\ul Subdivision 1.} [FINDINGS.] {\ul The legislature finds that it} \n\line 46.24 {\ul is appropriate to give Hassan township the powers of an economic} \n\line 46.25 {\ul development authority because the town is located in an} \n\line 46.26 {\ul increasingly urbanized area and is the only remaining town in} \n\line 46.27 {\ul Hennepin county.} \n\line 46.28 {\ul Subd. 2.} [ESTABLISHMENT.] {\ul The board of township} \n\line 46.29 {\ul supervisors of Hassan township may establish an economic} \n\line 46.30 {\ul development authority in the manner provided in Minnesota} \n\line 46.31 {\ul Statutes, sections 469.090 to 469.1081, and may impose limits on} \n\line 46.32 {\ul the authority enumerated in Minnesota Statutes, section} \n\line 46.33 {\ul 469.092. The economic development authority has all of the} \n\line 46.34 {\ul powers and duties granted to or imposed upon economic} \n\line 46.35 {\ul development authorities under Minnesota Statutes, sections} \n\line 46.36 {\ul 469.090 to 469.1081. The township economic development} \n\line 47.1 {\ul authority may create and define the boundaries of economic} \n\line 47.2 {\ul development districts at any place or places within the} \n\line 47.3 {\ul township, provided that a project as recommended by the township} \n\line 47.4 {\ul authority that is to be located within the corporate limits of a} \n\line 47.5 {\ul city may not be commenced without the approval of the governing} \n\line 47.6 {\ul body of the city. Minnesota Statutes, section 469.174,} \n\line 47.7 {\ul subdivision 10, and the contiguity requirement specified under} \n\line 47.8 {\ul Minnesota Statutes, section 469.101, subdivision 1, do not apply} \n\line 47.9 {\ul to limit the areas that may be designated as township economic} \n\line 47.10 {\ul development districts.} \n\line 47.11 {\ul Subd. 3.} [POWERS.] {\ul If an economic development authority is} \n\line 47.12 {\ul established as provided in subdivision 1, the township may} \n\line 47.13 {\ul exercise all of the powers relating to an economic development} \n\line 47.14 {\ul authority granted to a city under Minnesota Statutes, sections} \n\line 47.15 {\ul 469.090 to 469.1081, or other law, including the power to levy a} \n\line 47.16 {\ul tax to support the activities of the authority.} \n\line 47.17 {\ul Subd. 4.} [LOCAL APPROVAL.] {\ul This section is effective the} \n\line 47.18 {\ul day after the town board of supervisors of Hassan township and} \n\line 47.19 {\ul its chief clerical officer timely complete their compliance with} \n\line 47.20 {\ul Minnesota Statutes, section 645.021, subdivisions 2 and 3.} \n\line 47.21 Sec. 49. [REPEALER.] \n\line 47.22 {\ul (a) Minnesota Statutes 2000, sections 373.40, subdivision} \n\line 47.23 {\ul 7; and 474A.061, subdivision 6, are repealed.} \n\line 47.24 {\ul (b) Minnesota Statutes 2000, section 376.03, is repealed.} \n\line 47.25 Sec. 50. [EFFECTIVE DATE.] \n\line 47.26 {\ul Sections 13 to 42 are effective the day after final} \n\line 47.27 {\ul enactment except that section 19, paragraph (c), is effective to} \n\line 47.28 {\ul require submissions by December 31, 2002, and annually} \n\line 47.29 {\ul thereafter.}" \n\line 47.30 Delete the title and insert: \n\line 47.31 "A bill for an act \n\line 47.32 relating to public finance; updating and making \n\line 47.33 technical changes to public finance and related \n\line 47.34 provisions related to county and county-supported \n\line 47.35 hospitals, municipally owned nursing homes, lake \n\line 47.36 improvement districts, and the metropolitan council; \n\line 47.37 extending a sunset date for certain county capital \n\line 47.38 improvement bonds and limiting the inclusiveness of \n\line 47.39 capital improvements; removing election requirements \n\line 47.40 as preconditions for issuance of certain obligations; \n\line 48.1 requiring reverse referenda in certain cases; \n\line 48.2 clarifying the effect of a state guaranty as not \n\line 48.3 creating constitutional public debt of the state; \n\line 48.4 authorizing some flexibility in stating certain ballot \n\line 48.5 questions; authorizing Scott and Carver counties to \n\line 48.6 grant certain economic development powers to their \n\line 48.7 housing and redevelopment authorities; authorizing the \n\line 48.8 Chisago Lakes joint sewage treatment commission to \n\line 48.9 issue bonds; authorizing expanded funding by the \n\line 48.10 county for certain multijurisdictional program \n\line 48.11 activities in Hennepin county; authorizing Hassan \n\line 48.12 township to create and empower an economic development \n\line 48.13 authority; updating and changing the Minnesota Bond \n\line 48.14 Allocation Act; amending Minnesota Statutes 2000, \n\line 48.15 sections 103B.555, by adding a subdivision; 165.10, \n\line 48.16 subdivision 2; 275.60; 373.45, subdivision 3; 376.06, \n\line 48.17 subdivision 1; 376.07; 376.08, subdivisions 1, 2; \n\line 48.18 376.09; 383B.79, by adding a subdivision; 429.091, \n\line 48.19 subdivision 7a; 473.39, by adding a subdivision; \n\line 48.20 474A.02, subdivisions 8, 13a, 22a, 22b, 23a; 474A.03, \n\line 48.21 subdivisions 1, 2a, 4; 474A.04, subdivisions 1a, 5; \n\line 48.22 474A.045; 474A.047, subdivisions 1, 2; 474A.061, \n\line 48.23 subdivisions 1, 2a, 2b, 2c, 4; 474A.091, subdivisions \n\line 48.24 2, 3, 4, 5, 6, by adding a subdivision; 474A.131, \n\line 48.25 subdivisions 1, 2, by adding a subdivision; 474A.14; \n\line 48.26 475.54, subdivision 1; 475.58, subdivision 1; 475.59; \n\line 48.27 amending Laws 1974, chapter 473; Laws 1980, chapter \n\line 48.28 482; proposing coding for new law in Minnesota \n\line 48.29 Statutes, chapters 474A; repealing Minnesota Statutes \n\line 48.30 2000, sections 373.40, subdivision 7; 376.03; \n\line 48.31 474A.061, subdivision 6." \n\line 49.1 We request adoption of this report and repassage of the \n\line 49.2 bill. \n\line 49.5 Senate Conferees: \n\line 49.8 ......................... .........................\n\line 49.9 Lawrence J. Pogemiller Chuck Fowler \n\line 49.12 ......................... \n\line 49.13 William V. Belanger, Jr. \n\line 49.18 House Conferees: \n\line 49.21 ......................... .........................\n\line 49.22 Ron Abrams Dan McElroy \n\line 49.25 ......................... \n\line 49.26 Bob Milbert \n\line \n\line \par}
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