3rd Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to public finance; updating and making 1.3 technical changes to public finance and related 1.4 provisions related to county and county-supported 1.5 hospitals, municipally owned nursing homes, lake 1.6 improvement districts, and the metropolitan council; 1.7 extending a sunset date for certain county capital 1.8 improvement bonds and limiting the inclusiveness of 1.9 capital improvements; removing election requirements 1.10 as preconditions for issuance of certain obligations; 1.11 requiring reverse referenda in certain cases; 1.12 clarifying the effect of a state guaranty as not 1.13 creating constitutional public debt of the state; 1.14 authorizing some flexibility in stating certain ballot 1.15 questions; authorizing Scott and Carver counties to 1.16 grant certain economic development powers to their 1.17 housing and redevelopment authorities; authorizing the 1.18 Chisago Lakes joint sewage treatment commission to 1.19 issue bonds; authorizing expanded funding by the 1.20 county for certain multijurisdictional program 1.21 activities in Hennepin county; authorizing Hassan 1.22 township to create and empower an economic development 1.23 authority; updating and changing the Minnesota Bond 1.24 Allocation Act; amending Minnesota Statutes 2000, 1.25 sections 103B.555, by adding a subdivision; 165.10, 1.26 subdivision 2; 275.60; 373.45, subdivision 3; 376.06, 1.27 subdivision 1; 376.07; 376.08, subdivisions 1, 2; 1.28 376.09; 383B.79, by adding a subdivision; 429.091, 1.29 subdivision 7a; 473.39, by adding a subdivision; 1.30 474A.02, subdivisions 8, 13a, 22a, 22b, 23a; 474A.03, 1.31 subdivisions 1, 2a, 4; 474A.04, subdivisions 1a, 5; 1.32 474A.045; 474A.047, subdivisions 1, 2; 474A.061, 1.33 subdivisions 1, 2a, 2b, 2c, 4; 474A.091, subdivisions 1.34 2, 3, 4, 5, 6, by adding a subdivision; 474A.131, 1.35 subdivisions 1, 2, by adding a subdivision; 474A.14; 1.36 475.54, subdivision 1; 475.58, subdivision 1; 475.59; 1.37 amending Laws 1974, chapter 473; Laws 1980, chapter 1.38 482; proposing coding for new law in Minnesota 1.39 Statutes, chapters 474A; repealing Minnesota Statutes 1.40 2000, sections 373.40, subdivision 7; 376.03; 1.41 474A.061, subdivision 6. 1.42 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.43 Section 1. Minnesota Statutes 2000, section 103B.555, is 2.1 amended by adding a subdivision to read: 2.2 Subd. 4. [DISTRICT OBLIGATIONS.] The district, with 2.3 approval of the county board or joint county authority, 2.4 expressed in a resolution identifying each specific improvement 2.5 to which the approval applies, may exercise the powers of a city 2.6 under chapter 429 and section 444.075, including, but not 2.7 limited to: 2.8 (1) the levy of special assessments; 2.9 (2) the imposition of rates and charges; and 2.10 (3) the issuance of bonds 2.11 to finance improvements that the district may undertake. 2.12 [EFFECTIVE DATE.] This section is effective the day 2.13 following final enactment. 2.14 Sec. 2. Minnesota Statutes 2000, section 165.10, 2.15 subdivision 2, is amended to read: 2.16 Subd. 2. [BONDS ISSUED, SOLD, AND RETIRED.] Such bonds 2.17 shall be general obligations of the county and issued, sold, and 2.18 retired in the manner provided in chapter 475. 2.19 [EFFECTIVE DATE.] This section is effective the day 2.20 following final enactment. 2.21 Sec. 3. Minnesota Statutes 2000, section 275.60, is 2.22 amended to read: 2.23 275.60 [LEVY OR BOND REFERENDUM; BALLOT NOTICE.] 2.24 (a) Notwithstanding any general or special law or any 2.25 charter provisions, but subject to section 126C.17, subdivision 2.26 9, any question submitted to the voters by any local 2.27 governmental subdivision at a general or special election after 2.28 June 8, 1995, authorizing a property tax levy or tax rate 2.29 increase, including the issuance of debt obligations payable in 2.30 whole or in part from property taxes, must include on the ballot 2.31 the following notice in boldface type.: 2.32 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING 2.33 FOR A PROPERTY TAX INCREASE." 2.34 (b) For purposes of this section and section 275.61, "local 2.35 governmental subdivision" includes counties, home rule and 2.36 statutory cities, towns, school districts, and all special 3.1 taxing districts. This statement is in addition to any general 3.2 or special laws or any charter provisions that govern the 3.3 contents of a ballot question and, in the case of a question on 3.4 the issuance of debt obligations, may be supplemented by a 3.5 description of revenues pledged to payment of the obligations 3.6 that are intended as the primary source of payment. 3.7 (c) This section does not apply to a school district bond 3.8 election if the debt service payments are to be made entirely 3.9 from transfers of revenue from the capital fund to the debt 3.10 service fund. 3.11 [EFFECTIVE DATE.] This section is effective the day 3.12 following final enactment. 3.13 Sec. 4. Minnesota Statutes 2000, section 373.45, 3.14 subdivision 3, is amended to read: 3.15 Subd. 3. [AGREEMENT.] (a)In orderFor specified debt 3.16 obligations of a county to be covered bythe provisions ofthis 3.17 section, the county must enter an agreement with the authority 3.18 obligating the county to be bound bythe provisions ofthis 3.19 section. 3.20 (b) This agreement must be in a form prescribed by the 3.21 authority and contain any provisions required by the authority, 3.22 including, at least, an obligation to: 3.23 (1) deposit with the paying agent three days before the 3.24 date on which the payment is due an amount sufficient to make 3.25 that payment; 3.26 (2) notify the authority, if the county will be unable to 3.27 make all or a portion of the payment; and 3.28 (3) include a provision in the bond resolution and county's 3.29 agreement with the paying agent for the debt obligation that 3.30 requires the paying agent to inform the commissioner if it 3.31 becomes aware of a default or potential default in the payment 3.32 of principal or interest on that issue or if, on the day two 3.33 business days before the date a payment is due on that issue, 3.34 there are insufficient funds to make the payment on deposit with 3.35 the paying agent. 3.36 (c) Funds invested in a refunding escrow account 4.1 established under section 475.67 that are to become available to 4.2 the paying agent on a principal or interest payment date are 4.3 deemed to be on deposit with the paying agent three business 4.4 days before the payment date. 4.5(b)(d) The provisions of an agreement under this 4.6 subdivision are binding as to an issue as long as any debt 4.7 obligation of the issue remains outstanding. 4.8(c)(e) This sectionis a contract with bondholders and may4.9not be amended or repealed for the covered bonds so long as the4.10covered bonds are outstandingand the obligations of the state 4.11 under this section are not a public debt of the state under 4.12 article XI, section 4, of the Minnesota Constitution, and the 4.13 legislature may, at any time, choose not to appropriate amounts 4.14 under subdivision 4, paragraph (b). 4.15 [EFFECTIVE DATE.] This section is effective the day 4.16 following final enactment. 4.17 Sec. 5. Minnesota Statutes 2000, section 376.06, 4.18 subdivision 1, is amended to read: 4.19 Subdivision 1. [PROCEDURE, POWERS, PAY, ELECTION.] A 4.20 county board which has purchased and constructed buildings for 4.21 hospital purposes may operate these buildings as a hospital and 4.22 may appoint a superintendent. The board shall set the 4.23 superintendent's salary, term of employment, and powers and 4.24 duties; provide for the management and operation of the 4.25 hospital; and operate, control, and manage the hospital. The 4.26 superintendent shall serve at the pleasure of the board. If the 4.27 board determines that it is in the public interest, it may 4.28 appoint a hospital board of at least three, but not more than 4.29 nine members, whomust be county residents and landowners, to4.30servemay include some or all of the county commissioners except 4.31 as otherwise provided in subdivision 2. Persons appointed to 4.32 the hospital board must reside in the hospital's service area 4.33 and 80 percent of the board members, including any commissioners 4.34 appointed to serve on the hospital board, must be residents of 4.35 the county. The hospital board serves without compensation 4.36 unless the county board authorizes the payment of compensation 5.1 and reimbursement of expenses for service on the hospital 5.2 board. Notwithstanding section 375.44, if compensation and 5.3 reimbursement are authorized, they shall be the same as 5.4 authorized for service on the local social services agency. 5.5 Subject to its supervision, the county board may commit the 5.6 care, management, and operation of the hospital to the hospital 5.7 board. The county board may provide for the organization and 5.8 regulation of the hospital board, its duties and the duties of 5.9 the members, and regulations for the management, operation, and 5.10 control of the hospital. The county board may lease the 5.11 hospital grounds and buildings to ahospital association5.12 nonprofit or governmental hospital organization for terms it 5.13 considers advisable.Sections 376.01 to 376.06 do not permit5.14any county board to purchase and construct any hospital5.15buildings or to pay for them without first submitting the5.16question to the vote of the people. No purchase or construction5.17of buildings or payment may be made unless a majority of the5.18electors voting upon the proposition vote in favor.5.19 [EFFECTIVE DATE.] This section is effective the day 5.20 following final enactment. 5.21 Sec. 6. Minnesota Statutes 2000, section 376.07, is 5.22 amended to read: 5.23 376.07 [ADDITION TO COUNTY HOSPITAL.] 5.24When the county board of a county has been authorized by5.25the voters to construct an addition to the county hospital of5.26the county under sections 376.01 to 376.06, whether or not also5.27authorized to equip the addition, and the board has determined5.28that the addition, whether with or without equipment, cannot be5.29completed within the cost authorized, or has determined that, to5.30complete the improvement, certain alterations should be made, or5.31fixtures or equipment added, either in the original building, or5.32in the addition, or both, the board may be authorized to spend a5.33specified additional amount for any of the purposes mentioned in5.34this chapter, either by vote of the people of the county at a5.35general or special election or by petition. If an election is5.36held, the proposition shall be submitted and disposed of in the6.1same manner as provided by sections 376.01 to 376.06. If by6.2petition, the petition must be signed by a majority of those6.3voting at the last preceding general election. The petition may6.4be in the form of one document or of several documents in the6.5same form, and shall be filed with the county auditor. A6.6special election may be called in the manner provided for6.7calling special county elections. When authority is granted by6.8the voters, in either manner provided, the board may proceed6.9accordingly. If the board made or attempted to make a contract6.10or contracts for more than the authority first granted, it may6.11ratify and carry out the contracts.The county board, hospital 6.12 board, or board of directors of a nonprofit or governmental 6.13 hospital organization that has leased a county hospital may 6.14 authorize the remodeling, improvement, alteration, or 6.15 construction of an addition to the county hospital or of another 6.16 building on the county hospital's existing premises by a 6.17 majority vote of the board. Financing for any project under 6.18 this section is governed by other law, including sections 373.40 6.19 and 447.45 and chapter 475. 6.20 [EFFECTIVE DATE.] This section is effective the day 6.21 following final enactment. 6.22 Sec. 7. Minnesota Statutes 2000, section 376.08, 6.23 subdivision 1, is amended to read: 6.24 Subdivision 1. [APPROPRIATIONS.] Except as provided in 6.25 subdivision 2, the board of county commissioners in any county 6.26 with a population of 50,000 or less may appropriate up to 6.27 $65,000 annually from the general revenue fund of the county for 6.28 the acquisition of lands for hospital purposes, and the 6.29 construction, improvement, alterations, equipment and 6.30 maintenance of hospitals within the county, including public or 6.31 nonprofit hospitals that are not county hospitals. The board 6.32 may also appropriate up to $25,000 from the general revenue fund 6.33 of the county for the acquisition of land and construction of 6.34 municipally owned nursing homes within the county. 6.35 [EFFECTIVE DATE.] This section is effective the day 6.36 following final enactment. 7.1 Sec. 8. Minnesota Statutes 2000, section 376.08, 7.2 subdivision 2, is amended to read: 7.3 Subd. 2. [REMODELING OR ADDITIONS.] A county hospital may 7.4 by majority vote of its board of commissioners, or if the 7.5 hospital has been leased to another entity under section 376.06, 7.6 subdivision 1, or 447.47, by majority vote of the board of 7.7 directors of that entity, enter into projects for the 7.8 construction of an addition or remodeling to its presently 7.9 existing facility or the acquisition of equipment as described 7.10 in this subdivision without complying with the dollar limitation 7.11 of subdivision 1 or the election requirements of section 7.12 376.03. This subdivision appliesonlyto projects in which the 7.13 funds for the project are derived from dedicated, restricted, or 7.14 other designated accountsor, from the hospital's depreciation 7.15 fundand do not require incurring debt by the county through, or 7.16 from the issuance of bondsor otherwiseauthorized under other 7.17 law. An addition to a current hospital under this subdivision 7.18 may include construction of buildings physically separate from 7.19 the present hospital building, as well as additions to the 7.20 present building, if the new buildings are constructed on the 7.21 hospital's existing premises. 7.22 This subdivision does not affect the ability of the 7.23 hospital board to approve funds for improvements or remodeling 7.24 of a hospital facility under other law. 7.25 [EFFECTIVE DATE.] This section is effective the day 7.26 following final enactment. 7.27 Sec. 9. Minnesota Statutes 2000, section 376.09, is 7.28 amended to read: 7.29 376.09 [AID TO HOSPITALS IN COUNTIES HAVING NO COUNTY 7.30 HOSPITAL.] 7.31 In any county in which there is no county hospital, or a 7.32 county hospital is leased to a nonprofit or governmental 7.33 hospital organization pursuant to section 376.06, subdivision 1, 7.34 or 447.47, the county board may appropriate and pay money from 7.35 the general fund of the county, for the construction, 7.36 maintenance, and operation of a private, nonprofit, or public 8.1 hospital in the county for the treatment of sick, diseased, and 8.2 injured persons. Admission preference shall always be given to 8.3 patients who are, in whole or in part, public charges, and are 8.4 sent to the hospital by the county board. 8.5 [EFFECTIVE DATE.] This section is effective the day 8.6 following final enactment. 8.7 Sec. 10. Minnesota Statutes 2000, section 383B.79, is 8.8 amended by adding a subdivision to read: 8.9 Subd. 5. [FINANCING.] Hennepin county may appropriate 8.10 funds for any of the activities described in subdivision 1, 8.11 whether or not state funds are appropriated for the activity. 8.12 Hennepin county may include any part of the costs of a project 8.13 described in section 469.002, subdivision 12, in a capital 8.14 improvement plan adopted under section 373.40, and may issue 8.15 bonds for such purposes pursuant to and subject to the 8.16 procedures and limitations set forth in section 373.40, whether 8.17 or not the capital improvement to be financed is to be owned by 8.18 the county or any other governmental entity. Such purposes are 8.19 in addition to the capital improvements described in section 8.20 373.40, but shall not include light rail transit, commuter rail, 8.21 or any activity related to either of those, or a sports facility 8.22 building designed or used primarily for professional sports. No 8.23 funds appropriated under this subdivision may be used to pay 8.24 operating expenses. 8.25 Sec. 11. Minnesota Statutes 2000, section 429.091, 8.26 subdivision 7a, is amended to read: 8.27 Subd. 7a. [REVOLVING FUND BONDS.] The council may by 8.28 resolution establish a revolving fund for the payment of the 8.29 costs of any improvement or any waterworks systems, sewer 8.30 systems, or storm sewer systems described in section 444.075, 8.31 the costs of facilities to maintain streets and water, sewer, 8.32 and storm sewer systems and for the payment of any obligations 8.33 issued to pay the coststhereofof the facilities and systems 8.34 referred to in this subdivision or to refund obligations issued 8.35 for those purposes. The council may create within the revolving 8.36 fund a separate construction account into which the municipality 9.1 may deposit the proceeds of any obligations payable from the 9.2 fund, the proceeds of any special assessments collected with 9.3 respect to any improvement, any net revenues of a waterworks, 9.4 sewer system, or storm sewer system described in section 444.075 9.5 or any other available funds of the municipality appropriated to 9.6 it. Amounts on deposit in the construction account may be used 9.7 to pay the costs of any improvement or any waterworks, sewer 9.8 system, or storm sewer system described in section 444.075 or 9.9 any street or water, sewer, or storm sewer maintenance 9.10 facilities. No funds may be expended for an improvement unless 9.11 at least 20 percent of the costs of each such improvement is to 9.12 be assessed against benefited property. No funds may be 9.13 expended for a waterworks, sewer system, or storm sewer system, 9.14 other than a sewer system described in section 115.46, or 9.15 maintenance facilities unless the council estimates that the 9.16 costs will be recovered from the net revenues of the system or 9.17 any combined waterworks, sewer systems, or storm sewer systems 9.18 operated by the municipality. The council may also create a 9.19 separate debt service account within the revolving fund for the 9.20 payment of principal of and interest on any obligations payable 9.21 therefrom. Notwithstanding subdivision 4, the council is not 9.22 required to pledge any particular assessments or other revenues 9.23 to the payment of the obligations. Collections of special 9.24 assessments or net revenues may be deposited in either the 9.25 construction account or the debt service account as the council 9.26 or an officer designated by the council may determine, having 9.27 due regard for anticipated collections of special assessments 9.28 and net revenues from improvements or waterworks, sewer systems, 9.29 or storm sewer systems financed in whole or in part from the 9.30 construction account, and taxes levied for the payment of the 9.31 obligations. The council may issue obligations that are payable 9.32 primarily from the debt service account for the purpose of 9.33 providing funds to defray in whole or in part any expenses 9.34 incurred or estimated to be incurred in making the improvement 9.35 or improvements or in constructing the waterworks, sewer system, 9.36 or storm sewer system, including every item of cost of the kinds 10.1 authorized by section 475.65, and street and water, sewer, and 10.2 storm sewer maintenance facilities or to refund obligations 10.3 previously issued under this section or section 115.46 or 10.4 444.075. The obligations may be general obligations to which 10.5 the full faith and credit of the municipality are pledged. If 10.6 the special assessments to be levied and net revenues estimated 10.7 to be available for their payment are estimated to be at least 10.8 20 percent of the principal amount of the obligations, the 10.9 obligations may be issued without an election and shall not be 10.10 included in determining the net indebtedness of the municipality 10.11 under the provisions of any law limiting net indebtedness. The 10.12 cost of a maintenance facility that may be financed under this 10.13 subdivision is limited only to the portion of the facility that 10.14 is fairly allocable to the maintenance of streets and water, 10.15 sewer, and storm sewer systems. 10.16 [EFFECTIVE DATE.] This section is effective the day 10.17 following final enactment. 10.18 Sec. 12. Minnesota Statutes 2000, section 473.39, is 10.19 amended by adding a subdivision to read: 10.20 Subd. 1h. [OBLIGATIONS.] After July 1, 2001, in addition 10.21 to the authority in subdivisions 1a, 1b, 1c, 1d, 1e, and 1g, the 10.22 council may issue certificates of indebtedness, bonds, or other 10.23 obligations under this section in an amount not exceeding 10.24 $45,000,000 for capital expenditures as prescribed in the 10.25 council's regional transit master plan and transit capital 10.26 improvement program and for related costs, including the costs 10.27 of issuance and sale of the obligations, but not for computer 10.28 software, or for construction, maintenance, or operation of 10.29 light rail transit or commuter rail. 10.30 [EFFECTIVE DATE; APPLICATION.] This section is effective 10.31 the day following final enactment and applies in the counties of 10.32 Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 10.33 Sec. 13. Minnesota Statutes 2000, section 474A.02, 10.34 subdivision 8, is amended to read: 10.35 Subd. 8. [FEDERAL TAX LAW.] "Federal tax law" means those 10.36 provisions of the Internal Revenue Code of 1986, as 11.1 amendedthrough December 31, 1990, that limit the aggregate 11.2 amount of obligations of a specified type or types which may be 11.3 issued by an issuer during a calendar year whose interest is 11.4 excluded from gross income for purposes of federal income 11.5 taxation. 11.6 Sec. 14. Minnesota Statutes 2000, section 474A.02, 11.7 subdivision 13a, is amended to read: 11.8 Subd. 13a. [SMALL ISSUE POOL.] "Small issue pool" means 11.9 the amount of the annual volume cap allocated under section 11.10 474A.061, that is available for the issuance of enterprise zone 11.11 facility bonds authorized under Public Law Number 103-66, 11.12 section 13301, small issue bonds to finance manufacturing 11.13 projects,andthe agricultural development bond beginning farmer 11.14 and agricultural business enterprise loan program authorized in 11.15 sections 41C.01 to 41C.13, and student loan bonds issued by the 11.16 Minnesota higher education services office. 11.17 Sec. 15. Minnesota Statutes 2000, section 474A.02, 11.18 subdivision 22a, is amended to read: 11.19 Subd. 22a. [PUBLIC FACILITIES POOL.] "Public facilities 11.20 pool" means the amount of the annual volume cap allocated under 11.21 section 474A.061, which is available for the issuance of public 11.22 facility bondsor student loan bonds. 11.23 Sec. 16. Minnesota Statutes 2000, section 474A.02, 11.24 subdivision 22b, is amended to read: 11.25 Subd. 22b. [PUBLIC FACILITIES PROJECT.] "Public facilities 11.26 project" means any publicly owned facility, or facility owned by 11.27 a nonprofit organization that is used for district heating or 11.28 cooling, that is eligible to be financed with the proceeds of 11.29 public facilities bonds as defined under section 474A.02, 11.30 subdivision 23a. 11.31 Sec. 17. Minnesota Statutes 2000, section 474A.02, 11.32 subdivision 23a, is amended to read: 11.33 Subd. 23a. [QUALIFIED BONDS.] "Qualified bonds" means the 11.34 specific type or types of obligations that are subject to the 11.35 annual volume cap. Qualified bonds include the following types 11.36 of obligations as defined in federal tax law: 12.1 (a) "public facility bonds" means "exempt facility bonds" 12.2 as defined in federal tax law, except for residential rental 12.3 project bonds, which are those obligations issued to finance 12.4 airports, docks and wharves, mass commuting facilities, 12.5 facilities for the furnishing of water, sewage facilities, solid 12.6 waste disposal facilities, facilities for the local furnishing 12.7 of electric energy or gas, local district heating or cooling 12.8 facilities, and qualified hazardous waste facilities. New bonds 12.9 and other obligations are ineligible to receive state 12.10 allocations or entitlement authority for public facility 12.11 projects under this section if they have been issued: 12.12 (1) for the purpose of refinancing, refunding, or otherwise 12.13 defeasing existing debt; and 12.14 (2) more than one calendar year prior to the date of 12.15 application; 12.16 (b) "residential rental project bonds" which are those 12.17 obligations issued to finance qualified residential rental 12.18 projects; 12.19 (c) "mortgage bonds"; 12.20 (d) "small issue bonds" issued to finance manufacturing 12.21 projects and the acquisition or improvement of agricultural real 12.22 or personal property under sections 41C.01 to 41C.13; 12.23 (e) "student loan bonds" issued by or on behalf of the 12.24 Minnesota higher education services office; 12.25 (f) "redevelopment bonds"; 12.26 (g) "governmental bonds" with a nonqualified amount in 12.27 excess of $15,000,000 as set forth in section 141(b)5 of federal 12.28 tax law; and 12.29 (h) "enterprise zone facility bonds" issued to finance 12.30 facilities located within empowerment zones or enterprise 12.31 communities, as authorized under Public Law Number 103-66, 12.32 section 13301. 12.33 Sec. 18. Minnesota Statutes 2000, section 474A.03, 12.34 subdivision 1, is amended to read: 12.35 Subdivision 1. [UNDER FEDERAL TAX LAW; ALLOCATIONS.] At 12.36 the beginning of each calendar year after December 31,199713.1 2001, the commissioner shall determine the aggregate dollar 13.2 amount of the annual volume cap under federal tax law for the 13.3 calendar year, and of this amount the commissioner shall make 13.4 the following allocation: 13.5 (1)$63,000,000$74,530,000 to the small issue pool; 13.6 (2)$59,000,000$122,060,000 to the housing pool, 13.7$37,000,000of which 31 percent of the adjusted allocation is 13.8 reserved until theday after the firstlast Monday inFebruary13.9 July for single-family housing programs; 13.10 (3)$10,500,000$12,750,000 to the public facilities pool; 13.11 and 13.12 (4) amounts to be allocated as provided in subdivision 2a. 13.13 If the annual volume cap is greater or less than the amount 13.14 of bonding authority allocated under clauses (1) to (4) and 13.15 subdivision 2a, paragraph (a), clauses (1) to (4), the 13.16 allocation must be adjusted so that each adjusted allocation is 13.17 the same percentage of the annual volume cap as each original 13.18 allocation is of the total bonding authority originally 13.19 allocated. 13.20 Sec. 19. Minnesota Statutes 2000, section 474A.03, 13.21 subdivision 2a, is amended to read: 13.22 Subd. 2a. [ENTITLEMENT ISSUER ALLOCATION.] (a) The 13.23 commissioner shall make the following allocation to the 13.24 Minnesota housing finance agency and the following cities and 13.25 county: 13.26 (1)$53,750,000$84,940,000 per year to the Minnesota 13.27 housing finance agency, less any amount received in the previous13.28year under section 474A.091, subdivision 6; 13.29 (2)$21,000,000$33,190,000 per year to the city of 13.30 Minneapolis; 13.31 (3)$15,750,000$24,890,000 per year to the city of Saint 13.32 Paul; and 13.33 (4)$10,500,000$16,600,000 per year to the Dakota county 13.34 community development agency for the county of Dakota and all 13.35 political subdivisions located within the county. 13.36 (b) Entitlement allocations provided under this subdivision 14.1 must be used for mortgage bonds, mortgage credit certificates, 14.2 public facility bonds, or residential rental project bonds, 14.3 except that entitlement issuersmay also use their allocations14.4for public facility bonds, andmay carry forward their 14.5 allocations for any qualified bond as defined under section 14.6 474A.02, subdivision 23a. 14.7 (c) Data on the home purchase price amount, mortgage 14.8 amount, income, household size, and race of the households 14.9 served with the proceeds of mortgage revenue bonds and mortgage 14.10 credit certificates in the previous year must be submitted by 14.11 each entitlement issuer to the Minnesota housing finance agency 14.12 by December 31 of each year. Compliance by the Minnesota 14.13 housing finance agency with the provisions of section 462A.073, 14.14 subdivision 5, shall be deemed compliance with the reporting 14.15 requirements of this subdivision. 14.16 Sec. 20. Minnesota Statutes 2000, section 474A.03, 14.17 subdivision 4, is amended to read: 14.18 Subd. 4. [APPLICATION FEE.] Every entitlement issuer and 14.19 other issuer shall pay to the commissioner a nonrefundable 14.20 application fee to offset the state cost of program 14.21 administration. The application fee is $20 for each $100,000 of 14.22 entitlement or allocation requested, with the request rounded to 14.23 the nearest $100,000. The minimum fee is $20. Fees received by 14.24 the commissioner must be credited to the general fund. 14.25Application fees for projects of entitlement issuers must be14.26submitted to the commissioner with the notice of issuance of14.27bonds, notice of use of mortgage credit certificates, and notice14.28of carry forward.Each entitlement issuer must pay its 14.29 application fee in full for that calendar year to the 14.30 commissioner no later than when the first notice of issuance of 14.31 bonds, notice of use of mortgage credit certificates, or notice 14.32 of carry forward is submitted to the commissioner by that issuer. 14.33 Sec. 21. Minnesota Statutes 2000, section 474A.04, 14.34 subdivision 1a, is amended to read: 14.35 Subd. 1a. [ENTITLEMENT RESERVATIONS; CARRYFORWARD; 14.36 DEDUCTION.] Any amount returned by an entitlement issuer before 15.1 July 15 shall be reallocated through the housing pool. Any 15.2 amount returned on or after July 15 shall be reallocated through 15.3 the unified pool. An amount returned after the last Monday in 15.4 November shall be reallocated to the Minnesota housing finance 15.5 agency. Any amount of bonding authority that an entitlement 15.6 issuer carries forward under federal tax law that is not 15.7 permanently issued or for which the governing body of the 15.8 entitlement issuer has not enacted a resolution electing to use 15.9 the authority for mortgage credit certificatesby July 15and 15.10 has not provided a notice of issue to the commissioner before 15.11 4:30 p.m. on the last business day in December of the succeeding 15.12 calendar year shall be deducted from the entitlement allocation 15.13 for that entitlement issuerfor the current calendar year. Any15.14amount deducted from an entitlement issuer's allocation under15.15this subdivision shall be reallocated through the unified pool.15.16An entitlement issuer must permanently issue all carryforward15.17authority or enact a resolution electing to use all carryforward15.18authority for mortgage credit certificates prior to issuing any15.19current year authority of that entitlement issuerin the next 15.20 succeeding calendar year. Any amount deducted from an 15.21 entitlement issuer's allocation under this subdivision shall be 15.22 reallocated to other entitlement issuers, the housing pool, the 15.23 small issue pool, and the public facilities pool on a 15.24 proportional basis consistent with section 474A.03. 15.25 Sec. 22. Minnesota Statutes 2000, section 474A.04, 15.26 subdivision 5, is amended to read: 15.27 Subd. 5. [NOTICE OF ENTITLEMENT ALLOCATION.] As soon as 15.28 possible in each calendar year, the commissioner shallprovide15.29to each entitlement issuer a written notice of the amount of its15.30 post on the department's Web site the amount of each entitlement 15.31 allocation. 15.32 Sec. 23. Minnesota Statutes 2000, section 474A.045, is 15.33 amended to read: 15.34 474A.045 [SCORING SYSTEM FOR ENTERPRISE ZONE FACILITY 15.35 PROJECTS AND MANUFACTURING PROJECTS.] 15.36 The following criteria must be used in determining the 16.1 allocation of enterprise zone facility bonds and small issue 16.2 bonds for manufacturing projects. The issuer must prepare and 16.3 submit to the commissioner a public purpose scoring worksheet 16.4 that presents the data and methods used in determining the total 16.5 score under this section. The total score is the sum of the 16.6 following: 16.7 (1) the number of direct new jobs in the state generated by 16.8 the proposed project for the next two years per $100,000 of 16.9 proposed allocation multiplied by 15; 16.10 (2) the number of direct existing jobs in the state 16.11 multiplied by .625 due to the proposed project for the next two 16.12 years per $100,000 of proposed allocation multiplied by 15; 16.13 (3) the average hourly wage paid to employees by the 16.14 proposed project for the next two years, exclusive of benefits 16.15 mandated by law, based on the following scale: 16.16 Wages paid per hour $ 8 $10 $12 $15 16.17 Non-Metro area points awarded 10 15 20 20 16.18 Seven-County Metro Area 16.19 points awarded 0 10 15 20 16.20 For purposes of this section, the seven-county metropolitan 16.21 area includes Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, 16.22 and Washington counties; 16.23 (4) the quotient of the estimated total net increase in 16.24 property taxes generated in the state by the project in the 16.25 first full year of operation divided by the proposed bond 16.26 allocation, multiplied by 500;and16.27 (5) the seasonally unadjusted unemployment rate in the 16.28 community where the proposed project is located measured as a 16.29 percent of the state's unemployment rate, multiplied by ten. 16.30 The community seasonally unadjusted unemployment rate used 16.31 in determining the points under clause (5) must be the most 16.32 recent rate for the city or county in which the proposed project 16.33 is located, as provided by the commissioner of economic security. 16.34 (6) 20 points for projects that locate in an incorporated 16.35 area or a planned urban growth area as defined by section 16.36 462.352, subdivision 18; 17.1 (7) 20 points for brownfield projects located in a state or 17.2 federal Superfund site, a voluntary investigation and cleanup 17.3 site, or a brownfield site, all as defined by the Minnesota 17.4 pollution control agency; and 17.5 (8) 20 points for projects with favorable environmental 17.6 citizenship as evidenced by no nonforgivable or combination 17.7 administrative penalty orders, stipulation agreements, consent 17.8 decrees, or other enforcement orders containing a monetary 17.9 penalty by the Minnesota pollution control agency over the past 17.10 three years or pending at the time of application. 17.11 Sec. 24. Minnesota Statutes 2000, section 474A.047, 17.12 subdivision 1, is amended to read: 17.13 Subdivision 1. [ELIGIBILITY.] (a) An issuer may only use 17.14 the proceeds from residential rental bonds if the proposed 17.15 project meetsone ofthe following requirements: 17.16(1) the proposed project is a single room occupancy project17.17and all the units of the project will be occupied by individuals17.18whose incomes at the time of their initial residency in the17.19project are 50 percent or less of the greater of the statewide17.20or county median income adjusted for household size as17.21determined by the federal Department of Housing and Urban17.22Development;17.23(2) the proposed project is a multifamily project where at17.24least 75 percent of the units have two or more bedrooms and at17.25least one-third of the 75 percent have three or more bedrooms;17.26or17.27(3) the proposed project is a multifamily project that17.28meets the following requirements:17.29(i) the proposed project is the rehabilitation of an17.30existing building which meets the requirements for minimum17.31rehabilitation expenditures in sections 42(e)(2) and 42(e)(3)(A)17.32of the Internal Revenue Code;17.33(ii) the proposed project involves participation by the17.34Minnesota housing finance agency or a local unit of government17.35in the financing of the acquisition or rehabilitation of the17.36project. For purposes of this subdivision, "participation"18.1means an activity other than the issuance of the bonds; and18.2(iii) the proposed project must be occupied by individuals18.3or families whose incomes at the time of their initial residency18.4in the project meet the requirements of section 42(g) of the18.5Internal Revenue Code.18.6 (1) the proposed residential rental project meets the 18.7 requirements of section 142(d) of the Internal Revenue Code 18.8 regarding the incomes of the occupants of the housing; and 18.9 (2) the maximum rent for at least 20 percent of the units 18.10 in the proposed residential rental project do not exceed the 18.11 area fair market rent or exception fair market rents for 18.12 existing housing, if applicable, as established by the federal 18.13 Department of Housing and Urban Development. 18.14 (b)The maximum rent for a proposed single room occupancy18.15unit under paragraph (a), clause (1), is 30 percent of the18.16amount equal to 30 percent of the greater of the statewide or18.17county median income for a one-member household as determined by18.18the federal Department of Housing and Urban Development. The18.19maximum rent for at least 75 percent of the units of a18.20multifamily project under paragraph (a), clause (2), is 3018.21percent of the amount equal to 50 percent of the greater of the18.22statewide or county median income as determined by the federal18.23Department of Housing and Urban Development based on a household18.24size with 1.5 persons per bedroom.18.25(c)The proceeds from residential rental bonds may be used 18.26 for a project for which project-based federal rental assistance 18.27 payments are made only if: 18.28 (1) the owner of the project enters into a binding 18.29 agreement with the Minnesota housing finance agency under which 18.30 the owner is obligated to extend any existing low-income 18.31 affordability restrictions and any contract or agreement for 18.32 rental assistance payments for the maximum term permitted, 18.33 including any renewals thereof; and 18.34 (2) the Minnesota housing finance agency certifies that 18.35 project reserves will be maintained at closing of the bond issue 18.36 and budgeted in future years at the lesser of: 19.1 (i) the level described in Minnesota Rules, part 4900.0010, 19.2 subpart 7, item A, subitem (2), effective May 1, 1997; or 19.3 (ii) the level of project reserves available prior to the 19.4 bond issue, provided that additional money is available to 19.5 accomplish repairs and replacements needed at the time of bond 19.6 issue. 19.7 Sec. 25. Minnesota Statutes 2000, section 474A.047, 19.8 subdivision 2, is amended to read: 19.9 Subd. 2. [15-YEAR AGREEMENT.] Prior to the issuance of 19.10 residential rental bonds, the developer of the project for which 19.11 the bond proceeds will be used must enter into a 15-year 19.12 agreement with the issuer that specifies the maximum rental 19.13 rates of the rent-restricted units in the project and the income 19.14 levels of the residents of the project occupying 19.15 income-restricted units.TheSuch rental rates and income 19.16 levels must be within the limitations established under 19.17 subdivision 1. The developer must annually certify to the 19.18 issuer over the term of the agreement that the rental rates for 19.19 the rent-restricted units are within the limitations under 19.20 subdivision 1. The issuer may request individual certification 19.21 of the income ofallresidents of theprojectincome-restricted 19.22 units. The commissioner may request from the issuer a copy of 19.23 the annual certification prepared by the developer. The 19.24 commissioner may require the issuer to request individual 19.25 certification of all residents of theprojectincome-restricted 19.26 units. 19.27 Sec. 26. Minnesota Statutes 2000, section 474A.061, 19.28 subdivision 1, is amended to read: 19.29 Subdivision 1. [APPLICATION.] (a) An issuer may apply for 19.30 an allocation under this section by submitting to the department 19.31 an application on forms provided by the department, accompanied 19.32 by (1) a preliminary resolution, (2) a statement of bond counsel 19.33 that the proposed issue of obligations requires an allocation 19.34 under this chapter and the Internal Revenue Code, (3) the type 19.35 of qualified bonds to be issued, (4) an application deposit in 19.36 the amount of one percent of the requested allocation before the 20.1 last Monday in July, or in the amount of two percent of the 20.2 requested allocation on or after the last Monday in July, (5) a 20.3 public purpose scoring worksheet for manufacturing project and 20.4 enterprise zone facility project applications, and (6) for 20.5 residential rental projects, a statement from the applicant or 20.6 bond counsel as to whether the project preserves existing 20.7 federally subsidized housing for residential rental project 20.8 applications and whether the project is restricted to persons 20.9 who are 55 years of age or older. The issuer must pay the 20.10 application deposit by a check made payable to the department of 20.11 finance. The Minnesota housing finance agency, the Minnesota 20.12 rural finance authority, and the Minnesota higher education 20.13 services office may apply for and receive an allocation under 20.14 this section without submitting an application deposit. 20.15 (b) An entitlement issuer may not apply for an allocation 20.16 from the housing pool or from the public facilities pool unless 20.17 it has either permanently issued bonds equal to the amount of 20.18 its entitlement allocation for the current year plus any amount 20.19 of bonding authority carried forward from previous years or 20.20 returned for reallocation all of its unused entitlement 20.21 allocation. For purposes of this subdivision, its entitlement 20.22 allocation includes an amount obtained under section 474A.04, 20.23 subdivision 6. This paragraph does not apply to an application 20.24 from the Minnesota housing finance agency for an allocation 20.25 under subdivision 2a for cities who choose to have the agency 20.26 issue bonds on their behalf. 20.27 (c) If an application is rejected under this section, the 20.28 commissioner must notify the applicant and return the 20.29 application deposit to the applicant within 30 days unless the 20.30 applicant requests in writing that the application be 20.31 resubmitted. The granting of an allocation of bonding authority 20.32 under this section must be evidenced by a certificate of 20.33 allocation. 20.34 Sec. 27. Minnesota Statutes 2000, section 474A.061, 20.35 subdivision 2a, is amended to read: 20.36 Subd. 2a. [HOUSING POOL ALLOCATION.] (a)On the first21.1business day that falls on a Monday of the calendar year and the21.2first Monday in FebruaryCommencing on the second Tuesday in 21.3 January and continuing on each Monday through July 15, the 21.4 commissioner shall allocate available bonding authorityinfrom 21.5 the housing pool to applications receivedbyon or before the 21.6 Monday of thepreviouspreceding week for residential rental 21.7 projectsthat are not restricted to persons who are 55 years of21.8age or older andthat meet the eligibility criteria under 21.9 section 474A.047, except that allocations may be made to21.10projects that are restricted to persons who are 55 years of age21.11or older, if the project preserves existing federally subsidized21.12housing. Projects that preserve existing federally subsidized21.13housing shall be allocated available bonding authority in the21.14housing pool for residential rental projects prior to the21.15allocation of available bonding authority to other eligible21.16residential rental projects. Allocations of available bonding 21.17 authority from the housing pool for eligible residential rental 21.18 projects shall be awarded in the following order of priority: 21.19 (1) projects that preserve existing federally subsidized 21.20 housing; (2) projects that are not restricted to persons who are 21.21 55 years of age or older; and (3) other residential rental 21.22 projects. Prior to May 15, no allocation shall be made to a 21.23 project restricted to persons who are 55 years of age or older. 21.24 If an issuer that receives an allocation under this paragraph 21.25 does not issue obligations equal to all or a portion of the 21.26 allocation received within 120 days of the allocation or returns 21.27 the allocation to the commissioner, the amount of the allocation 21.28 is canceled and returned for reallocation through the housing 21.29 pool or to the unified pool after July 15. 21.30 (b) AfterFebruaryJanuary 1, and throughFebruaryJanuary 21.31 15, the Minnesota housing finance agency may accept applications 21.32 from cities for single-family housing programs which meet 21.33 program requirements as follows: 21.34 (1) the housing program must meet a locally identified 21.35 housing need and be economically viable; 21.36 (2) the adjusted income of home buyers may not exceed 80 22.1 percent of the greater of statewide or area median income as 22.2 published by the Department of Housing and Urban Development, 22.3 adjusted for household size; 22.4 (3) house price limits may not exceed the federal price 22.5 limits established for mortgage revenue bond programs. Data on 22.6 the home purchase price amount, mortgage amount, income, 22.7 household size, and race of the households served in the 22.8 previous year's single-family housing program, if any, must be 22.9 included in each application; and 22.10 (4) for applicants who choose to have the agency issue 22.11 bonds on their behalf, an application fee pursuant to section 22.12 474A.03, subdivision 4, and an application deposit equal to one 22.13 percent of the requested allocation must be submitted to the 22.14 Minnesota housing finance agency before the agency forwards the 22.15 list specifying the amounts allocated to the commissioner under 22.16 paragraph(c)(d). The agency shall submit the city's 22.17 application fee and application deposit to the commissioner when 22.18 requesting an allocation from the housing pool. 22.19 Applications by a consortium shall include the name of each 22.20 member of the consortium and the amount of allocation requested 22.21 by each member. 22.22The Minnesota housing finance agency may accept22.23applications from June 15 through June 30 from cities for22.24single-family housing programs which meet program requirements22.25specified under clauses (1) to (4) if bonding authority is22.26available in the housing pool. Applications will be accepted22.27from June 15 to June 30 only from cities that received an22.28allotment in the same calendar year and used at least 75 percent22.29of their allotment by June 1.22.30 (c) Any amounts remaining in the housing pool after July 15 22.31 are available for single-family housing programs for cities that 22.32 applied in January and received an allocation under this section 22.33 in the same calendar year. For a city that chooses to issue 22.34 bonds on its own behalf or pursuant to a joint powers agreement, 22.35 the agency must allot available bonding authority based on the 22.36 formula in paragraphs (d) and (f). Allocations will be made 23.1 loan by loan, on a first come, first served basis 23.2 amongapplicantcities on whose behalf the Minnesota housing 23.3 finance agency issues bonds.The agency must allot available23.4bonding authority.23.5 Any city that received an allocation pursuant to paragraph 23.6 (f) in the same calendar year that wishes to issue bonds on its 23.7 own behalf or pursuant to a joint powers agreement for an amount 23.8 becoming available for single-family housing programs after July 23.9 15 shall notify the Minnesota housing finance agency by July 23.10 15. The Minnesota housing finance agency shall notify each city 23.11 making a request of the amount of its allocation within three 23.12 business days after July 15. The city must comply with 23.13 paragraph (f). 23.14 For purposes of paragraphs (a) to(g)(h), "city" means a 23.15 county or a consortium of local government units that agree 23.16 through a joint powers agreement to apply together for 23.17 single-family housing programs, and has the meaning given it in 23.18 section 462C.02, subdivision 6. "Agency" means the Minnesota 23.19 housing finance agency. 23.20(c)(d) The total amount of allocation for mortgage bonds 23.21 for one city is limited to the lesser of: (i) the amount 23.22 requested, or (ii) the product of the total amount available for 23.23 mortgage bonds from the housing pool, multiplied by the ratio of 23.24 each applicant's population as determined by the most recent 23.25 estimate of the city's population released by the state 23.26 demographer's office to the total of all the applicants' 23.27 population, except that each applicant shall be allocated a 23.28 minimum of $100,000 regardless of the amount requested or the 23.29 amount determined under the formula in clause (ii). If a city 23.30 applying for an allocation is located within a county that has 23.31 also applied for an allocation, the city's population will be 23.32 deducted from the county's population in calculating the amount 23.33 of allocations under this paragraph. 23.34 Upon determining the amount of each applicant's allocation, 23.35 the agency shall forward to the commissioner a list specifying 23.36 the amounts allotted to each applicationand application deposit24.1checks to the commissionerwith all application fees and 24.2 deposits from applicants who choose to have the agency issue 24.3 bonds on their behalf. 24.4 Total allocations from the housing pool for single-family 24.5 housing programs may not exceed 31 percent of the adjusted 24.6 allocation to the housing pool until after July 15. 24.7(d)(e) The agency may issue bonds on behalf of 24.8 participating cities. The agency shall request an allocation 24.9 from the commissioner for all applicants who choose to have the 24.10 agency issue bonds on their behalf and the commissioner shall 24.11 allocate the requested amount to the agency. The agency may 24.12 request an allocation at any time after thefirst Mondaysecond 24.13 Tuesday inFebruaryJanuary and through the last Monday in July,24.14but may request an allocation no later than the last Monday in24.15July. After awarding an allocation and receiving a notice of 24.16 issuance for the mortgage bonds issued on behalf of the 24.17 participating cities, the commissioner shall transfer the 24.18 application deposits to the Minnesota housing finance agency to 24.19 be returned to the participating cities. Thecommissioner24.20 Minnesota housing finance agency shall return any application 24.21 deposit to a city that paid an application deposit under 24.22 paragraph (b), clause (4), but was not part of the list 24.23 forwarded to the commissioner under paragraph(c)(d). 24.24(e)(f) A city may choose to issue bonds on its own behalf 24.25 or through a joint powers agreementor may use bonding authority24.26for mortgage credit certificatesand may request an allocation 24.27 from the commissioner by forwarding an application with an 24.28 application fee pursuant to section 474A.03, subdivision 4, and 24.29 a one percent application deposit to the commissioner no later 24.30 than the Monday of the week preceding an allocation. If the 24.31 total amount requested by all applicants exceeds the amount 24.32 available in the pool, the city may not receive a greater 24.33 allocation than the amount it would have received under the list 24.34 forwarded by the Minnesota housing finance agency to the 24.35 commissioner. No city may request or receive an allocation from 24.36 the commissioner until the list under paragraph(c)(d) has been 25.1 forwarded to the commissioner. A city must request an 25.2 allocation from the commissioner no later than14 days before25.3the unified pool is created pursuant to section 474A.091,25.4subdivision 1the last Monday in July.On and after the first25.5Monday in February and through the last Monday in July,No city 25.6 may receive an allocation from the housing pool for mortgage 25.7 bonds which has not first applied to the Minnesota housing 25.8 finance agency. The commissioner shall allocate the requested 25.9 amount to the city or cities subject to the limitations under 25.10 this paragraph. 25.11 If a city issues mortgage bonds from an allocation received 25.12 under this paragraph, the issuer must provide for the recycling 25.13 of funds into new loans. If the issuer is not able to provide 25.14 for recycling, the issuer must notify the commissioner in 25.15 writing of the reason that recycling was not possible and the 25.16 reason the issuer elected not to have the Minnesota housing 25.17 finance agency issue the bonds. "Recycling" means the use of 25.18 money generated from the repayment and prepayment of loans for 25.19 further eligible loans or for the redemption of bonds and the 25.20 issuance of current refunding bonds. 25.21(f)(g) No entitlement city or county or city in an 25.22 entitlement county may apply for or be allocated authority to 25.23 issue mortgage bonds or use mortgage credit certificates from 25.24 the housing pool. No city in an entitlement county may apply 25.25 for or be allocated authority to issue residential rental bonds 25.26 from the housing pool or the unified pool. 25.27(g)(h) A city that does not use at least 50 percent of its 25.28 allotment by the date applications are due for the first 25.29 allocation that is made from the housing pool for single-family 25.30 housing programs in the immediately succeeding calendar year may 25.31 not apply to the housing pool for a single-family mortgage bond 25.32 or mortgage credit certificate program allocation that exceeds 25.33 the amount of its allotment for the preceding year that was used 25.34 by the city in the immediately preceding year or receive an 25.35 allotment from the housing pool in the succeeding calendar year 25.36 that exceeds the amount of its allotment for the preceding year 26.1 that was used in the preceding year. The minimum allotment is 26.2 $100,000 for an allocation made prior to July 15, regardless of 26.3 the amount used in the preceding calendar year, except that a 26.4 city whose allocation in the preceding year was the minimum 26.5 amount of $100,000 and who did not use at least 50 percent of 26.6 its allocation from the preceding year is ineligible for an 26.7 allocation in the immediate succeeding calendar year. Each 26.8 local government unit in a consortium must meet the requirements 26.9 of this paragraph. 26.10 Sec. 28. Minnesota Statutes 2000, section 474A.061, 26.11 subdivision 2b, is amended to read: 26.12 Subd. 2b. [SMALL ISSUE POOL ALLOCATION.]On the first26.13Monday in January that is a business day through the last Monday26.14in JulyCommencing on the second Tuesday in January and 26.15 continuing on each Monday through the last Monday in July, the 26.16 commissioner shall allocate available bonding authority from the 26.17 small issue poolon Monday of each weekto applications received 26.18 on or before the Monday of the preceding week for manufacturing 26.19 projects and enterprise zone facility projects. From thefirst26.20Monday in January that is a business daysecond Tuesday in 26.21 January through the last Monday in July, the commissioner shall 26.22 reserve $5,000,000 of the available bonding authority from the 26.23 small issue pool for applications for agricultural development 26.24 bond loan projects of the Minnesota rural finance authority. 26.25 Beginning in calendar year 2002, on the second Tuesday in 26.26 January through the last Monday in July, the commissioner shall 26.27 reserve $10,000,000 of available bonding authority in the small 26.28 issue pool for applications for student loan bonds of or on 26.29 behalf of the Minnesota higher education services office. The 26.30 total amount of allocations for student loan bonds from the 26.31 small issue pool may not exceed $10,000,000 per year. 26.32 The commissioner shall reserve $10,000,000 until the day 26.33 after the last Monday in February, $10,000,000 until the day 26.34 after the last Monday in April, and $10,000,000 until the day 26.35 after the last Monday in June in the small issue pool 26.36 for enterprise zone facility projects and manufacturing 27.1 projects. The amount of allocation provided to an issuer for a 27.2 specific enterprise zone facility project or manufacturing 27.3 project will be based on the number of points received for the 27.4 proposed project under the scoring system under section 27.5 474A.045.Proposed projects that receive 50 points or more are27.6eligible for all of the proposed allocation. Proposed projects27.7that receive less than 50 points are eligible to receive a27.8proportionally reduced share of the proposed authority, based27.9upon the number of points received.27.10 If there are two or more applications for manufacturing and 27.11 enterprise zone facility projects from the small issue pool and 27.12 there is insufficient bonding authority to provide allocations 27.13 for all projects in any one week, the available bonding 27.14 authority shall be awarded based on the number of points awarded 27.15 a project under section 474A.045, with those projects receiving 27.16 the greatest number of points receiving allocation first. If 27.17 two or more applications receive an equal number of points, 27.18 available bonding authority shall be awarded by lot unless 27.19 otherwise agreed to by the respective issuers. 27.20 Sec. 29. Minnesota Statutes 2000, section 474A.061, 27.21 subdivision 2c, is amended to read: 27.22 Subd. 2c. [PUBLIC FACILITIES POOL ALLOCATION.] From the 27.23 beginning of the calendar year and continuing for a period of 27.24 120 days, the commissioner shall reserve$5,000,000$3,000,000 27.25 of the available bonding authority from the public facilities 27.26 pool for applications for public facilities projects to be 27.27 financed by the Western Lake Superior Sanitary District.On the27.28first Monday in January that is a business day through the last27.29Monday in JulyCommencing on the second Tuesday in January and 27.30 continuing on each Monday through the last Monday in July, the 27.31 commissioner shall allocate available bonding authority from the 27.32 public facilities poolon Monday of each weekto applications 27.33 for eligible public facilities projects received on or before 27.34 the Monday of the preceding week. If there are two or more 27.35 applications for public facilities projects from the pool and 27.36 there is insufficient available bonding authority to provide 28.1 allocations for all projects in any one week, the available 28.2 bonding authority shall be awarded by lot unless otherwise 28.3 agreed to by the respective issuers. 28.4 Sec. 30. Minnesota Statutes 2000, section 474A.061, 28.5 subdivision 4, is amended to read: 28.6 Subd. 4. [RETURN OF ALLOCATION; DEPOSIT REFUND.] (a) If an 28.7 issuer that receives an allocation under this section determines 28.8 that it will not issue obligations equal to all or a portion of 28.9 the allocation received under this section within 120 days of 28.10 allocation or within the time period permitted by federal tax 28.11 law, whichever is less, the issuer must notify the department. 28.12 If the issuer notifies the department or the 120-day period 28.13 since allocation has expired prior to the last Monday in July, 28.14 the amount of allocation is canceled and returned for 28.15 reallocation through the pool from which it was originally 28.16 allocated. If the issuer notifies the department or the 120-day 28.17 period since allocation has expired on or after the last Monday 28.18 in July, the amount of allocation is canceled and returned for 28.19 reallocation through the unified pool. If the issuer notifies 28.20 the department after the last Monday in November, the amount of 28.21 allocation is canceled and returned for reallocation to the 28.22 Minnesota housing finance agency. To encourage a competitive 28.23 application process, the commissioner shall reserve, for new 28.24 applications, the amount of allocation that is canceled and 28.25 returned for reallocation under this section for a minimum of 28.26 seven calendar days. 28.27 (b) An issuer that returns for reallocation all or a 28.28 portion of an allocation received under this section within 120 28.29 days of allocation shall receive within 30 days a refund equal 28.30 to: 28.31 (1) one-half of the application deposit for the amount of 28.32 bonding authority returned within 30 days of receiving 28.33 allocation; 28.34 (2) one-fourth of the application deposit for the amount of 28.35 bonding authority returned between 31 and 60 days of receiving 28.36 allocation; and 29.1 (3) one-eighth of the application deposit for the amount of 29.2 bonding authority returned between 61 and 120 days of receiving 29.3 allocation. 29.4 (c) No refund shall be available for allocations returned 29.5 120 or more days after receiving the allocation or beyond the 29.6 last Monday in November.This subdivision does not apply to the29.7Minnesota housing finance agency or the Minnesota rural finance29.8authority.29.9 Sec. 31. [474A.062] [HESO 120-DAY ISSUANCE EXEMPTION.] 29.10 The Minnesota higher education services office is exempt 29.11 from the 120-day issuance requirements in this chapter and may 29.12 carry forward allocations for student loan bonds into three 29.13 successive calendar years, subject to carryforward notice 29.14 requirements of section 474A.131, subdivision 2. The maximum 29.15 cumulative carryforward is limited to $25,000,000. 29.16 Sec. 32. Minnesota Statutes 2000, section 474A.091, 29.17 subdivision 2, is amended to read: 29.18 Subd. 2. [APPLICATION.] Issuers may apply for an 29.19 allocation under this section by submitting to the department an 29.20 application on forms provided by the department accompanied by 29.21 (1) a preliminary resolution, (2) a statement of bond counsel 29.22 that the proposed issue of obligations requires an allocation 29.23 under this chapter and the Internal Revenue Code, (3) the type 29.24 of qualified bonds to be issued, (4) an application deposit in 29.25 the amount of two percent of the requested allocation,and(5) a 29.26 public purpose scoring worksheet for manufacturing and 29.27 enterprise zone applications, and (6) for residential rental 29.28 projects, a statement from the applicant or bond counsel as to 29.29 whether the project preserves existing federally subsidized 29.30 housing and whether the project is restricted to persons who are 29.31 55 years of age or older. The issuer must pay the application 29.32 deposit by check. An entitlement issuer may not apply for an 29.33 allocation for public facility bonds, residential rental project 29.34 bonds, or mortgage bonds under this section unless it has either 29.35 permanently issued bonds equal to the amount of its entitlement 29.36 allocation for the current year plus any amount carried forward 30.1 from previous years or returned for reallocation all of its 30.2 unused entitlement allocation. For purposes of this 30.3 subdivision, its entitlement allocation includes an amount 30.4 obtained under section 474A.04, subdivision 6. 30.5 Notwithstanding the restrictions imposed on entitlement 30.6 issuers under this subdivision, the Minnesota housing finance 30.7 agency may notapply forreceive an allocation for mortgage 30.8 bonds under this sectionuntil afterprior to thelastfirst 30.9 Monday inAugust. Notwithstanding the restrictions imposed on30.10unified pool allocations after September 1 under subdivision 3,30.11paragraph (c)(2), the Minnesota housing finance agencyOctober, 30.12 but may be awarded allocations for mortgage bonds from the 30.13 unified pool on or afterSeptember 1the first Monday in 30.14 October. The Minnesota housing finance agency, the Minnesota 30.15 higher education services office, and the Minnesota rural 30.16 finance authority may apply for and receive an allocation under 30.17 this section without submitting an application deposit. 30.18 Sec. 33. Minnesota Statutes 2000, section 474A.091, 30.19 subdivision 3, is amended to read: 30.20 Subd. 3. [ALLOCATION PROCEDURE.] (a) The commissioner 30.21 shall allocate available bonding authority under this section on 30.22 the Monday of every other week beginning with the first Monday 30.23 in August through and on the last Monday in November. 30.24 Applications for allocations must be received by the department 30.25 by 4:30 p.m. on the Monday preceding the Monday on which 30.26 allocations are to be made. If a Monday falls on a holiday, the 30.27 allocation will be made or the applications must be received by 30.28 the next business day after the holiday. 30.29(b) On or before September 1, allocations shall be awarded30.30from the unified pool in the following order of priority:30.31(1) applications for enterprise zone facility bonds;30.32(2) applications for small issue bonds for manufacturing30.33projects;30.34(3) applications for small issue bonds for agricultural30.35development bond loan projects;30.36(4) applications for residential rental project bonds;31.1(5) applications for public facility projects funded by31.2public facility bonds;31.3(6) applications for redevelopment bonds;31.4(7) applications for mortgage bonds; and31.5(8) applications for governmental bonds.31.6Allocations for residential rental projects may only be31.7made during the first allocation in August. The amount of31.8allocation provided to an issuer for a specific manufacturing31.9project will be based on the number of points received for the31.10proposed project under the scoring system under section 474A.045.31.11Proposed manufacturing projects that receive 50 points or more31.12are eligible for all of the proposed allocation. Proposed31.13manufacturing projects that receive less than 50 points under31.14section 474A.045 are only eligible to receive a proportionally31.15reduced share of the proposed authority, based upon the number31.16of points received.31.17 (b) Prior to October 1, only the following applications 31.18 shall be awarded allocations from the unified pool. Allocations 31.19 shall be awarded in the following order of priority: 31.20 (1) applications for residential rental project bonds; 31.21 (2) applications for small issue bonds for manufacturing 31.22 projects; and 31.23 (3) applications for small issue bonds for agricultural 31.24 development bond loan projects. 31.25 (c) On the first Monday in October through the last Monday 31.26 in November, allocations shall be awarded from the unified pool 31.27 in the following order of priority: 31.28 (1) applications for student loan bonds issued by or on 31.29 behalf of the Minnesota higher education services office; 31.30 (2) applications for mortgage bonds; 31.31 (3) applications for public facility projects funded by 31.32 public facility bonds; 31.33 (4) applications for small issue bonds for manufacturing 31.34 projects; 31.35 (5) applications for small issue bonds for agricultural 31.36 development bond loan projects; 32.1 (6) applications for residential rental project bonds; 32.2 (7) applications for enterprise zone facility bonds; 32.3 (8) applications for governmental bonds; and 32.4 (9) applications for redevelopment bonds. 32.5 (d) If there are two or more applications for manufacturing 32.6 projects from the unified pool and there is insufficient bonding 32.7 authority to provide allocations for all manufacturing projects 32.8 in any one allocation period, the available bonding authority 32.9 shall be awarded based on the number of points awarded a project 32.10 under section 474A.045 with those projects receiving the 32.11 greatest number of points receiving allocation first. If two or 32.12 more applications for manufacturing projects receive an equal 32.13 amount of points, available bonding authority shall be awarded 32.14 by lot unless otherwise agreed to by the respective issuers. 32.15 (e) If there are two or more applications for enterprise 32.16 zone facility projects from the unified pool and there is 32.17 insufficient bonding authority to provide allocations for all 32.18 enterprise zone facility projects in any one allocation period, 32.19 the available bonding authority shall be awarded based on the 32.20 number of points awarded a project under section 474A.045 with 32.21 those projects receiving the greatest number of points receiving 32.22 allocation first. If two or more applications for enterprise 32.23 zone facility projects receive an equal amount of points, 32.24 available bonding authority shall be awarded by lot unless 32.25 otherwise agreed to by the respective issuers. 32.26 (f) If there are two or more applications for residential 32.27 rental projects from the unified pool and there is insufficient 32.28 bonding authority to provide allocations for all residential 32.29 rental projects in any one allocation period, the available 32.30 bonding authority shall be awarded in the following order of 32.31 priority: (1) projects that preserve existing federally 32.32 subsidized housing; (2) projects that are not restricted to 32.33 persons who are 55 years of age or older; and (3) other 32.34 residential rental projects. 32.35(c)(1)(g) From the first Monday in August through the last 32.36 Monday in November, $20,000,000 of bonding authority or an 33.1 amount equal to the total annual amount of bonding authority 33.2 allocated to the small issue pool under section 474A.03, 33.3 subdivision 1, less the amount allocated to issuers from the 33.4 small issue pool for that year, whichever is less, is reserved 33.5 within the unified pool for small issue bonds to the extent such 33.6 amounts are available within the unified pool.On the first33.7Monday in September through the last Monday in November,33.8$2,500,000 of bonding authority or an amount equal to the total33.9annual amount of bonding authority allocated to the public33.10facilities pool under section 474A.03, subdivision 1, less the33.11amount allocated to issuers from the public facilities pool for33.12that year, whichever is less, is reserved within the unified33.13pool for public facility bonds to the extent such amounts are33.14available within the unified pool.33.15(2)(h) The total amount of allocations for mortgage bonds 33.16 from the housing pool and the unified pool may not exceed: 33.17(i)(1) $10,000,000 for any one city; or 33.18(ii)(2) $20,000,000 for any number of cities in any one 33.19 county. 33.20An allocation for mortgage bonds may be used for mortgage33.21credit certificates.33.22(d) After September 1, allocations shall be awarded from33.23the unified pool only for the following types of qualified bonds:33.24small issue bonds, public facility bonds to finance publicly33.25owned facility projects, residential rental project bonds, and33.26enterprise zone facility bonds.33.27 (i) The total amount of allocations for student loan bonds 33.28 from the unified pool may not exceed $10,000,000 per year. 33.29 (j) If there is insufficient bonding authority to fund all 33.30 projects within any qualified bond category other than 33.31 enterprise zone facility projects, manufacturing projects, and 33.32 residential rental projects, allocations shall be awarded by lot 33.33 unless otherwise agreed to by the respective issuers. 33.34 (k) If an application is rejected, the commissioner must 33.35 notify the applicant and return the application deposit to the 33.36 applicant within 30 days unless the applicant requests in 34.1 writing that the application be resubmitted. 34.2 (l) The granting of an allocation of bonding authority 34.3 under this section must be evidenced by issuance of a 34.4 certificate of allocation. 34.5 Sec. 34. Minnesota Statutes 2000, section 474A.091, is 34.6 amended by adding a subdivision to read: 34.7 Subd. 3a. [MORTGAGE BONDS.] (a) Bonding authority 34.8 remaining in the unified pool on October 1 is available for 34.9 single-family housing programs for cities that applied in 34.10 January and received an allocation under section 474A.061, 34.11 subdivision 2a, in the same calendar year. The Minnesota 34.12 housing finance agency shall receive an allocation for mortgage 34.13 bonds pursuant to this section, minus any amounts for a city or 34.14 consortium that intends to issue bonds on its own behalf under 34.15 paragraph (c). 34.16 (b) The agency may issue bonds on behalf of participating 34.17 cities. The agency shall request an allocation from the 34.18 commissioner for all applicants who choose to have the agency 34.19 issue bonds on their behalf and the commissioner shall allocate 34.20 the requested amount to the agency. Allocations shall be 34.21 awarded by the commissioner each Monday commencing on the first 34.22 Monday in October through the last Monday in November for 34.23 applications received by 4:30 p.m. on the Monday of the week 34.24 preceding an allocation. 34.25 For cities who choose to have the agency issue bonds on 34.26 their behalf, allocations will be made loan by loan, on a first 34.27 come, first served basis among the cities. The agency shall 34.28 submit an application fee pursuant to section 474A.03, 34.29 subdivision 4, and an application deposit equal to two percent 34.30 of the requested allocation to the commissioner when requesting 34.31 an allocation from the unified pool. After awarding an 34.32 allocation and receiving a notice of issuance for mortgage bonds 34.33 issued on behalf of the participating cities, the commissioner 34.34 shall transfer the application deposit to the Minnesota housing 34.35 finance agency. 34.36 For purposes of paragraphs (a) to (d), "city" means a 35.1 county or a consortium of local government units that agree 35.2 through a joint powers agreement to apply together for 35.3 single-family housing programs, and has the meaning given it in 35.4 section 462C.02, subdivision 6. "Agency" means the Minnesota 35.5 housing finance agency. 35.6 (c) Any city that received an allocation pursuant to 35.7 section 474A.061, subdivision 2a, paragraph (f), in the current 35.8 year that wishes to receive an additional allocation from the 35.9 unified pool and issue bonds on its own behalf or pursuant to a 35.10 joint powers agreement shall notify the Minnesota housing 35.11 finance agency by the third Monday in September. The total 35.12 amount of allocation for mortgage bonds for a city choosing to 35.13 issue bonds on its own behalf or through a joint powers 35.14 agreement is limited to the lesser of: (i) the amount 35.15 requested, or (ii) the product of the total amount available for 35.16 mortgage bonds from the unified pool, multiplied by the ratio of 35.17 the population of each city that applied in January and received 35.18 an allocation under section 474A.061, subdivision 2a, in the 35.19 same calendar year, as determined by the most recent estimate of 35.20 the city's population released by the state demographer's office 35.21 to the total of the population of all the cities that applied in 35.22 January and received an allocation under section 474A.061, 35.23 subdivision 2a, in the same calendar year. If a city choosing 35.24 to issue bonds on its own behalf or through a joint powers 35.25 agreement is located within a county that has also chosen to 35.26 issue bonds on its own behalf or through a joint powers 35.27 agreement, the city's population will be deducted from the 35.28 county's population in calculating the amount of allocations 35.29 under this paragraph. 35.30 The Minnesota housing finance agency shall notify each city 35.31 choosing to issue bonds on its own behalf or pursuant to a joint 35.32 powers agreement of the amount of its allocation by October 15. 35.33 Upon determining the amount of the allocation of each choosing 35.34 to issue bonds on its own behalf or through a joint powers 35.35 agreement, the agency shall forward a list specifying the 35.36 amounts allotted to each city. 36.1 A city that chooses to issue bonds on its own behalf or 36.2 through a joint powers agreement may request an allocation from 36.3 the commissioner by forwarding an application with an 36.4 application fee pursuant to section 474A.03, subdivision 4, and 36.5 an application deposit equal to two percent of the requested 36.6 amount to the commissioner no later than 4:30 p.m. on the Monday 36.7 of the week preceding an allocation. Allocations to cities that 36.8 choose to issue bonds on their own behalf shall be awarded by 36.9 the commissioner on the first Monday after October 15 through 36.10 the last Monday in November. No city may receive an allocation 36.11 from the commissioner after the last Monday in November. The 36.12 commissioner shall allocate the requested amount to the city or 36.13 cities subject to the limitations under this subdivision. 36.14 If a city issues mortgage bonds from an allocation received 36.15 under this paragraph, the issuer must provide for the recycling 36.16 of funds into new loans. If the issuer is not able to provide 36.17 for recycling, the issuer must notify the commissioner in 36.18 writing of the reason that recycling was not possible and the 36.19 reason the issuer elected not to have the Minnesota housing 36.20 finance agency issue the bonds. "Recycling" means the use of 36.21 money generated from the repayment and prepayment of loans for 36.22 further eligible loans or for the redemption of bonds and the 36.23 issuance of current refunding bonds. 36.24 (d) No entitlement city or county or city in an entitlement 36.25 county may apply for or be allocated authority to issue mortgage 36.26 bonds or use mortgage credit certificates from the unified pool. 36.27 (e) An allocation awarded to the agency for mortgage bonds 36.28 under this section may be carried forward by the agency into the 36.29 next succeeding calendar year subject to notice requirements 36.30 under section 474A.131 and is available until the last business 36.31 day in December of that succeeding calendar year. 36.32 Sec. 35. Minnesota Statutes 2000, section 474A.091, 36.33 subdivision 4, is amended to read: 36.34 Subd. 4. [MORTGAGE BONDSREMAINING BONDING AUTHORITY.] All 36.35 remaining bonding authority available for allocation under this 36.36 section on December 1, is allocated to the Minnesota housing 37.1 finance agency. 37.2 Sec. 36. Minnesota Statutes 2000, section 474A.091, 37.3 subdivision 5, is amended to read: 37.4 Subd. 5. [RETURN OF ALLOCATION; DEPOSIT REFUND.] (a) If an 37.5 issuer that receives an allocation under this section determines 37.6 that it will not issue obligations equal to all or a portion of 37.7 the allocation received under this section within 120 days of 37.8 the allocation or within the time period permitted by federal 37.9 tax law, whichever is less, the issuer must notify the 37.10 department. If the issuer notifies the department or the 37.11 120-day period since allocation has expired prior to the last 37.12 Monday in November, the amount of allocation is canceled and 37.13 returned for reallocation through the unified pool. If the 37.14 issuer notifies the department on or after the last Monday in 37.15 November, the amount of allocation is canceled and returned for 37.16 reallocation to the Minnesota housing finance agency. To 37.17 encourage a competitive application process, the commissioner 37.18 shall reserve, for new applications, the amount of allocation 37.19 that is canceled and returned for reallocation under this 37.20 section for a minimum of seven calendar days. 37.21 (b) An issuer that returns for reallocation all or a 37.22 portion of an allocation received under this section within 120 37.23 days of the allocation shall receive within 30 days a refund 37.24 equal to: 37.25 (1) one-half of the application deposit for the amount of 37.26 bonding authority returned within 30 days of receiving the 37.27 allocation; 37.28 (2) one-fourth of the application deposit for the amount of 37.29 bonding authority returned between 31 and 60 days of receiving 37.30 the allocation; and 37.31 (3) one-eighth of the application deposit for the amount of 37.32 bonding authority returned between 61 and 120 days of receiving 37.33 the allocation. 37.34 (c) No refund of the application deposit shall be available 37.35 for allocations returned on or after the last Monday in November. 37.36This subdivision does not apply to the Minnesota housing finance38.1agency, or the Minnesota rural finance authority.38.2 Sec. 37. Minnesota Statutes 2000, section 474A.091, 38.3 subdivision 6, is amended to read: 38.4 Subd. 6. [FINAL ALLOCATION; CARRYFORWARD.] Notwithstanding 38.5 the notice requirements of section 474A.131, subdivision 2, any 38.6 bonding authority remaining unissued by the Minnesota housing 38.7 finance agency on the last business day in December shall be 38.8 carried forward into the next calendar year by the commissioner 38.9 for the Minnesota housing finance agencyin accordance with38.10section 474A.131, subdivision 2. 38.11 Sec. 38. Minnesota Statutes 2000, section 474A.131, 38.12 subdivision 1, is amended to read: 38.13 Subdivision 1. [NOTICE OF ISSUE.] Each issuer that issues 38.14 bonds with an allocation received under this chapter shall 38.15 provide a notice of issue to the department on forms provided by 38.16 the department stating: 38.17 (1) the date of issuance of the bonds; 38.18 (2) the title of the issue; 38.19 (3) the principal amount of the bonds; 38.20 (4) the type of qualified bonds under federal tax law;and38.21 (5) the dollar amount of the bonds issued that were subject 38.22 to the annual volume cap; and 38.23 (6) for entitlement issuers, whether the allocation is from 38.24 current year entitlement authority or is from carry forward 38.25 authority. 38.26 For obligations that are issued as a part of a series of 38.27 obligations, a notice must be provided for each series. A 38.28 penalty of one-half of the amount of the application deposit not 38.29 to exceed $5,000 shall apply to any issue of obligations for 38.30 which a notice of issue is not provided to the department within 38.31 five business days after issuance or before the last Monday in 38.32 December, whichever occurs first. Within 30 days after receipt 38.33 of a notice of issue the department shall refund a portion of 38.34 the application deposit equal to one percent of the amount of 38.35 the bonding authority actually issued if a one percent 38.36 application deposit was made, or equal to two percent of the 39.1 amount of the bonding authority actually issued if a two percent 39.2 application deposit was made, less any penalty amount. 39.3 Sec. 39. Minnesota Statutes 2000, section 474A.131, is 39.4 amended by adding a subdivision to read: 39.5 Subd. 1b. [DEADLINE FOR ISSUANCE OF QUALIFIED BONDS.] If 39.6 an issuer fails to notify the department before 4:30 p.m. on the 39.7 last business day in December of issuance of obligations 39.8 pursuant to an allocation received for any qualified bond 39.9 project or issuance of an entitlement allocation, the allocation 39.10 is canceled and the bonding authority is allocated to the 39.11 Minnesota housing finance agency for carryforward by the 39.12 commissioner under section 474A.091, subdivision 6. 39.13 Sec. 40. Minnesota Statutes 2000, section 474A.131, 39.14 subdivision 2, is amended to read: 39.15 Subd. 2. [CARRYFORWARD NOTICE.] If an issuer intends to 39.16 carry forward an allocation received under this chapter, it must 39.17 notify the department in writing before 4:30 p.m. on the last 39.18Monday ofbusiness day in December. This notice requirement 39.19 does not apply to the Minnesota housing finance agency for the 39.20 carryforward of unallocated unified pool balances. 39.21 Sec. 41. Minnesota Statutes 2000, section 474A.14, is 39.22 amended to read: 39.23 474A.14 [NOTICE OF AVAILABLE AUTHORITY.] 39.24 The department shallpublish in the State Register a39.25 provide at its official Web site a written notice of the amount 39.26 of bonding authority in the housing, small issue, and public 39.27 facilities pools as soon after January 1 as possible. The 39.28 department shallpublish in the State Register aprovide at its 39.29 official Web site a written notice of the amount of bonding 39.30 authority available for allocation in the unified pool as soon 39.31 after August 1 as possible. 39.32 Sec. 42. Minnesota Statutes 2000, section 475.54, 39.33 subdivision 1, is amended to read: 39.34 Subdivision 1. [IN INSTALLMENTS; EXCEPTION; ANNUAL LIMIT.] 39.35 Except as provided in subdivision 3, 5a, 15, or 17, or as 39.36 expressly authorized in another law, all obligations of each 40.1 issue shall mature or be subject to mandatory sinking fund 40.2 redemption in installments, the first not later than three years 40.3 and the last not later than 30 years from the date of the issue; 40.4 or 40 years or the useful life of the asset, whichever is less, 40.5 for municipal water and wastewater treatment systems and 40.6 essential community facilities financed or guaranteed by the 40.7 United States Department of Agriculture. No amount of principal 40.8 of the issue payable in any calendar year shall exceedfive40.9times thean amountofequal to the smallest amount payable in 40.10 any preceding calendar year ending three years or more after the 40.11 issue date multiplied: 40.12 (1) by five, in the case of obligations maturing not later 40.13 than 25 years from the date of issue; and 40.14 (2) by six, in the case of obligations maturing 25 years or 40.15 later from the date of issue. 40.16 [EFFECTIVE DATE.] This section is effective the day 40.17 following final enactment. 40.18 Sec. 43. Minnesota Statutes 2000, section 475.58, 40.19 subdivision 1, is amended to read: 40.20 Subdivision 1. [APPROVAL BY ELECTORS; EXCEPTIONS.] 40.21 Obligations authorized by law or charter may be issued by any 40.22 municipality upon obtaining the approval of a majority of the 40.23 electors voting on the question of issuing the obligations, but 40.24 an election shall not be required to authorize obligations 40.25 issued: 40.26 (1) to pay any unpaid judgment against the municipality; 40.27 (2) for refunding obligations; 40.28 (3) for an improvement or improvement program, which 40.29 obligation is payable wholly or partly from the proceeds of 40.30 special assessments levied upon property specially benefited by 40.31 the improvement or by an improvement within the improvement 40.32 program, or of taxes levied upon the increased value of property 40.33 within a district for the development of which the improvement 40.34 is undertaken, including obligations which are the general 40.35 obligations of the municipality, if the municipality is entitled 40.36 to reimbursement in whole or in part from the proceeds of such 41.1 special assessments or taxes and not less than 20 percent of the 41.2 cost of the improvement or the improvement program is to be 41.3 assessed against benefited property or is to be paid from the 41.4 proceeds of federal grant funds or a combination thereof, or is 41.5 estimated to be received from such taxes within the district; 41.6 (4) payable wholly from the income of revenue producing 41.7 conveniences; 41.8 (5) under the provisions of a home rule charter which 41.9 permits the issuance of obligations of the municipality without 41.10 election; 41.11 (6) under the provisions of a law which permits the 41.12 issuance of obligations of a municipality without an election; 41.13 (7) to fund pension or retirement fund liabilities pursuant 41.14 to section 475.52, subdivision 6; 41.15 (8) under a capital improvement plan under section 41.16 373.40; and 41.17 (9)to fund facilities as provided in subdivision 3; and41.18(10)under sections 469.1813 to 469.1815 (property tax 41.19 abatement authority bonds). 41.20 Sec. 44. Minnesota Statutes 2000, section 475.59, is 41.21 amended to read: 41.22 475.59 [MANNER OF SUBMISSION; NOTICE.] 41.23 When the governing body of a municipality resolves to issue 41.24 bonds for any purpose requiring the approval of the electors, it 41.25 shall provide for submission of the proposition of their 41.26 issuance at a general or special election or town or school 41.27 district meeting. Notice of such election or meeting shall be 41.28 given in the manner required by law and shall state the maximum 41.29 amount and the purpose of the proposed issue. In any school 41.30 district, the school board or board of education may, according 41.31 to its judgment and discretion, submit as a single ballot 41.32 question or as two or more separate questions in the notice of 41.33 election and ballots the proposition of their issuance for any 41.34 one or more of the following, stated conjunctively or in the 41.35 alternative: acquisition or enlargement of sites, acquisition, 41.36 betterment, erection, furnishing, equipping of one or more new 42.1 schoolhouses, remodeling, repairing, improving, adding to, 42.2 betterment, furnishing, equipping of one or more existing 42.3 schoolhouses. In any city, town, or county, the governing body 42.4 may, according to its judgment and discretion, submit as a 42.5 single ballot question or as two or more separate questions in 42.6 the notice of election and ballots the proposition of their 42.7 issuance, stated conjunctively or in the alternative, for the 42.8 acquisition, construction, or improvement of any facilities at 42.9 one or more locations. 42.10 Sec. 45. Laws 1974, chapter 473, is amended to read: 42.11 Section 1. [SCOTT COUNTY; HOUSING AND REDEVELOPMENT 42.12 AUTHORITY.] There is hereby created in Scott county a public 42.13 body corporate and politic, to be known as the Scott county 42.14 housing and redevelopment authority, having all of the powers 42.15 and duties of a housing and redevelopment authority under the 42.16 provisions ofthe municipal housing and redevelopment act,42.17 Minnesota Statutes, Sections462.411 to 462.711, and acts42.18amendatory thereof; which act applies to the county of42.19Scott469.001 to 469.047, and having those powers of an economic 42.20 development authority under the provisions of Minnesota 42.21 Statutes, sections 469.090 to 469.180 as are granted to it by 42.22 Scott county as provided below. For the purposes of applying 42.23 the provisions ofthe municipal housing and redevelopment42.24actMinnesota Statutes, sections 469.001 to 469.047 and 469.090 42.25 to 469.180, to Scott county, the county has all the powers and 42.26 duties of a municipality, the county board has all of the powers 42.27 and duties of a governing body, the chairman of the county board 42.28 has all of the powers and duties of a mayor, and the area of 42.29 operation includes the area within the territorial boundaries of 42.30 the county. 42.31 Sec. 2. [APPLICATION.] Subdivision 1. This act shall not 42.32 limit or restrict any existing housing and redevelopment 42.33 authority or prevent a municipality from creating an authority. 42.34The county shall not exercise jurisdiction in any municipality42.35where a municipal housing and redevelopment authority is42.36established.43.1 Subd. 2. A municipal housing and redevelopment authority 43.2 may request the Scott county housing and redevelopment authority 43.3 to handle the housing duties of the authority and, in such an 43.4 event, the Scott county housing and redevelopment authority 43.5 shall act and have exclusive jurisdiction for housing in the 43.6 municipality pursuant to the provisions ofthe municipal housing43.7and redevelopment act,Minnesota Statutes, Sections462.411 to43.8462.711, and acts amendatory thereof469.001 to 469.047. A 43.9 transfer of duties relating to housing shall not transfer any 43.10 duties relating to redevelopment. 43.11 Sec. 3. [MUNICIPAL APPROVAL.] If any housing or 43.12 redevelopment project is undertaken in Scott county pursuant to 43.13 this authorization, and such project is within the boundaries of 43.14 any incorporated village, city or township, the location of such 43.15 project shall be approved by the governing body of such village, 43.16 city or township. 43.17 Sec. 4. [ECONOMIC DEVELOPMENT AUTHORITY POWERS.] The Scott 43.18 county housing and redevelopment authority may exercise any of 43.19 the powers of an economic development authority (EDA) granted to 43.20 it by resolution by the Scott county board of commissioners, 43.21 except for the authority to levy the tax described in Minnesota 43.22 Statutes, section 469.107. With the prior approval of the Scott 43.23 county board the authority may increase its levy of the special 43.24 tax described in Minnesota Statutes, section 469.033, 43.25 subdivision 6, to an amount not exceeding 0.01813 percent of 43.26 taxable market value, or any higher limit from time to time 43.27 authorized under Minnesota Statutes, section 469.107 or 469.033, 43.28 subdivision 6. 43.29 Sec. 5. [OFFERS OF TAX-FORFEITED LANDS.] Scott county may 43.30 offer to the Scott county housing and redevelopment authority, 43.31 under the conditions and policies established by the county, and 43.32 subject to the approval of the city in which the property is 43.33 located, nonconservation tax-forfeited land prior to making the 43.34 properties available to cities in Scott county. 43.35Sec. 4.Sec. 6. [EFFECTIVE DATE; LOCAL APPROVAL.]This act43.36takes effect when approved by a majority of the board of county44.1commissioners of Scott county and upon compliance with Minnesota44.2Statutes, Section 645.021This act is effective the day after 44.3 the governing body of Scott county and its chief clerical 44.4 officer timely complete their compliance with Minnesota 44.5 Statutes, section 645.021, subdivisions 2 and 3. 44.6 Sec. 46. Laws 1980, chapter 482, is amended to read: 44.7 Section 1. [CARVER COUNTY; HOUSING AND REDEVELOPMENT.] 44.8 Subdivision 1. There is created in the county of Carver a 44.9 public body corporate and politic, to be known as the Carver 44.10 county housing and redevelopment authority, having all of the 44.11 powers and duties of a housing and redevelopment authority under 44.12 the provisions ofthe municipal housing and redevelopment act,44.13 Minnesota Statutes,Section 462.411 to 462.711sections 469.001 44.14 to 469.047, and having those powers of an economic development 44.15 authority under the provisions of Minnesota Statutes, sections 44.16 469.090 to 469.1082, as are granted to it by Carver county as 44.17 provided in sections 2 to 4. For the purposes of applying the 44.18 provisions ofthe municipal housing and redevelopment44.19actMinnesota Statutes, sections 469.001 to 469.047 and 469.090 44.20 to 469.1082, to Carver county, the county has all of the powers 44.21 and duties of a municipality, the county board has all of the 44.22 powers and duties of a governing body, the chairman of the 44.23 county board has all of the powers and duties of a mayor, and 44.24 the area of operation includes the area within the territorial 44.25 boundaries of the county. 44.26 Subd. 2. This section shall not limit or restrict any 44.27 existing housing and redevelopment authority or prevent a 44.28 municipality from creating an authority.The county shall not44.29exercise jurisdiction in any municipality where a municipal44.30housing and redevelopment authority is established.If a 44.31 municipal housing and redevelopment authority requests the 44.32 Carver county housing and redevelopment authority to handle the 44.33 housing duties of the municipal authority, the Carver county 44.34 housing and redevelopment authority shall act and have exclusive 44.35 jurisdiction for housing in the municipality. A transfer of 44.36 duties relating to housing shall not transfer any duties 45.1 relating to redevelopment. 45.2 Sec. 2. [ECONOMIC DEVELOPMENT AUTHORITY POWERS.] The 45.3 Carver county housing and redevelopment authority may exercise 45.4 any of the powers of an economic development authority granted 45.5 to it by resolution by the Carver county board of commissioners, 45.6 except for the authority to levy the tax described in Minnesota 45.7 Statutes, section 469.107. With the prior approval of the 45.8 Carver county board, the authority may increase its levy of the 45.9 special tax described in Minnesota Statutes, section 469.033, 45.10 subdivision 6, to an amount not exceeding 0.01813 percent of 45.11 taxable market value, or any higher limit from time to time, 45.12 authorized under Minnesota Statutes, section 469.107 or 469.033, 45.13 subdivision 6. 45.14 Sec. 3. [OFFERS OF TAX-FORFEITED LANDS.] Carver county may 45.15 offer to the Carver county housing and redevelopment authority, 45.16 under the conditions and policies established by the county, and 45.17 subject to the approval of the city in which the property is 45.18 located, nonconservation tax-forfeited land prior to making the 45.19 properties available to cities in Carver county. 45.20Sec. 2.Sec. 4. [LOCAL APPROVAL.] Before a housing or 45.21 redevelopment project of the Carver county housing and 45.22 redevelopment authority is undertaken, the project shall be 45.23 approved by the local governing body with jurisdiction over all 45.24 or any part of the area in which the proposed project is located. 45.25Sec. 3.Sec. 5. [EFFECTIVE DATE; LOCAL APPROVAL.] This 45.26 actis effective upontakes effect the dayof complianceafter 45.27 the governing body of Carver county complies with Minnesota 45.28 Statutes, Section 645.021,Subdivision 3subdivisions 2 and 3. 45.29 Sec. 47. [CHISAGO LAKES JOINT SEWAGE TREATMENT COMMISSION 45.30 BONDING AUTHORITY.] 45.31 Subdivision 1. [AUTHORITY.] Notwithstanding Minnesota 45.32 Statutes, section 471.59, subdivision 11, the Chisago lakes 45.33 joint sewage treatment commission, a joint powers board 45.34 established by the county of Chisago, and the cities of 45.35 Lindstrom, Chisago City, and Center City, to own and operate 45.36 wastewater treatment facilities for the member local 46.1 governments, may issue and sell general obligation bonds 46.2 pursuant to Minnesota Statutes, sections 115.46 and 444.075, and 46.3 chapter 475, to acquire land for, construct, expand, furnish, 46.4 equip, and modify its wastewater treatment facilities, and 46.5 pledge the full faith and credit and taxing power of the 46.6 governmental units that are members of the joint powers board. 46.7 Bonds issued under this section are not subject to Minnesota 46.8 Statutes, section 475.58. The joint powers board is a 46.9 municipality within the meaning of Minnesota Statutes, chapter 46.10 475. Each government unit that is a member of the joint powers 46.11 board must adopt a resolution authorizing the joint powers board 46.12 to issue and sell the bonds. 46.13 Subd. 2. [EFFECTIVE DATE; NO LOCAL APPROVAL.] This section 46.14 is effective the day following final enactment and does not 46.15 require local approval, as provided in Minnesota Statutes, 46.16 section 645.023, subdivision 1, paragraph (a). 46.17 Sec. 48. [HASSAN TOWNSHIP; ECONOMIC DEVELOPMENT AUTHORITY; 46.18 ESTABLISHMENT AND POWERS.] 46.19 Subdivision 1. [FINDINGS.] The legislature finds that it 46.20 is appropriate to give Hassan township the powers of an economic 46.21 development authority because the town is located in an 46.22 increasingly urbanized area and is the only remaining town in 46.23 Hennepin county. 46.24 Subd. 2. [ESTABLISHMENT.] The board of township 46.25 supervisors of Hassan township may establish an economic 46.26 development authority in the manner provided in Minnesota 46.27 Statutes, sections 469.090 to 469.1081, and may impose limits on 46.28 the authority enumerated in Minnesota Statutes, section 46.29 469.092. The economic development authority has all of the 46.30 powers and duties granted to or imposed upon economic 46.31 development authorities under Minnesota Statutes, sections 46.32 469.090 to 469.1081. The township economic development 46.33 authority may create and define the boundaries of economic 46.34 development districts at any place or places within the 46.35 township, provided that a project as recommended by the township 46.36 authority that is to be located within the corporate limits of a 47.1 city may not be commenced without the approval of the governing 47.2 body of the city. Minnesota Statutes, section 469.174, 47.3 subdivision 10, and the contiguity requirement specified under 47.4 Minnesota Statutes, section 469.101, subdivision 1, do not apply 47.5 to limit the areas that may be designated as township economic 47.6 development districts. 47.7 Subd. 3. [POWERS.] If an economic development authority is 47.8 established as provided in subdivision 1, the township may 47.9 exercise all of the powers relating to an economic development 47.10 authority granted to a city under Minnesota Statutes, sections 47.11 469.090 to 469.1081, or other law, including the power to levy a 47.12 tax to support the activities of the authority. 47.13 Subd. 4. [LOCAL APPROVAL.] This section is effective the 47.14 day after the town board of supervisors of Hassan township and 47.15 its chief clerical officer timely complete their compliance with 47.16 Minnesota Statutes, section 645.021, subdivisions 2 and 3. 47.17 Sec. 49. [REPEALER.] 47.18 (a) Minnesota Statutes 2000, sections 373.40, subdivision 47.19 7; and 474A.061, subdivision 6, are repealed. 47.20 (b) Minnesota Statutes 2000, section 376.03, is repealed. 47.21 Sec. 50. [EFFECTIVE DATE.] 47.22 Sections 13 to 42 are effective the day after final 47.23 enactment except that section 19, paragraph (c), is effective to 47.24 require submissions by December 31, 2002, and annually 47.25 thereafter.