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SF 2572

1st Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

  1.1                          A bill for an act 
  1.2             relating to public financing; providing for 
  1.3             appointment of commissioners in eminent domain 
  1.4             proceedings; modifying a notice for proposed property 
  1.5             taxes; modifying terminology; delaying the expiration 
  1.6             of a mortgage registry and deed tax in Ramsey and 
  1.7             Hennepin counties; modifying terms for loans to 
  1.8             political subdivisions and general obligation revenue 
  1.9             bonds and revenue bonds; requiring notice and hearing 
  1.10            on certain proposed acquisitions by condemnation; 
  1.11            establishing limits on bond issuance for 
  1.12            extraterritorial projects; providing for distribution 
  1.13            of certain funds by the metropolitan council; 
  1.14            authorizing the issuance of additional obligations by 
  1.15            the metropolitan council with certain restrictions; 
  1.16            authorizing municipal obligations without an election 
  1.17            to pay to reconstruct streets under certain 
  1.18            conditions; providing for distribution of proceeds 
  1.19            from certain tax-forfeited lands sales in Koochiching 
  1.20            and Itasca counties; changing the maximum amount and 
  1.21            extending the period in which the city of St. Paul may 
  1.22            issue certain bonds; adding authority for borrowing 
  1.23            money; modifying provision for bonds issued for 
  1.24            erection of a county jail; allowing levy for and 
  1.25            issuance of bonds by Southwest Regional Development 
  1.26            Commission; defining territory of Cook county as a 
  1.27            hospital district and making it generally subject to 
  1.28            chapter 447; authorizing the city of South St. Paul to 
  1.29            convey parcels of real estate for construction of 
  1.30            single family housing; authorizing the region nine 
  1.31            development commission to incorporate; allowing Anoka 
  1.32            county to issue capital improvement bonds for a 
  1.33            specific purpose; establishing the Lakes Area economic 
  1.34            authority; providing the authority with power to levy 
  1.35            taxes; authorizing the city of St. Paul to establish 
  1.36            an independent library agency; authorizing the library 
  1.37            agency to issue bonds; providing for the distribution 
  1.38            and apportionment of certain tax-forfeited land 
  1.39            proceeds; amending Minnesota Statutes 2000, sections 
  1.40            117.075; 383A.80, subdivision 4; 383B.80, subdivision 
  1.41            4; 465.73; 469.012, subdivision 1; 469.034, 
  1.42            subdivision 2; 469.102, subdivision 2; 469.153, by 
  1.43            adding a subdivision; 469.155, subdivisions 3, 4, 8; 
  1.44            469.157; 473.252, subdivision 3; 473.39, by adding a 
  1.45            subdivision; 475.58, by adding a subdivision; 641.23; 
  1.46            Minnesota Statutes 2001 Supplement, section 275.065, 
  2.1             subdivision 3; Laws 1965, chapter 326, section 1, 
  2.2             subdivision 5, as amended; Laws 1967, chapter 170, 
  2.3             section 1, subdivision 5, as amended; Laws 1971, 
  2.4             chapter 773, section 1, subdivision 2, as amended; 
  2.5             Laws 1989, chapter 211, section 8, as amended; 
  2.6             proposing coding for new law in Minnesota Statutes, 
  2.7             chapter 471. 
  2.9      Section 1.  Minnesota Statutes 2000, section 117.075, is 
  2.10  amended to read: 
  2.12     Upon proof being filed of the service of such notice, the 
  2.13  court, at the time and place therein fixed or to which the 
  2.14  hearing may be adjourned, shall hear all competent evidence 
  2.15  offered for or against the granting of the petition, regulating 
  2.16  the order of proof as it may deem best.  If the proposed taking 
  2.17  shall appear to be necessary and such as is authorized by law, 
  2.18  the court by an order shall appoint three disinterested 
  2.19  commissioners, and at least two alternates, residents of the 
  2.20  county, to ascertain and report the amount of damages that will 
  2.21  be sustained by the several owners on account of such taking.  
  2.22     Before appointing a commissioner, the court shall inquire 
  2.23  whether each prospective commissioner has any relationship, 
  2.24  business or otherwise, to any of the parties in the proceeding, 
  2.25  or any interest in the proceeding which may constitute a 
  2.26  conflict of interest, or which may create the appearance of 
  2.27  impropriety should that person be appointed.  Responses to this 
  2.28  inquiry must be either written or on the record and made 
  2.29  available by the court to any party in the proceeding before and 
  2.30  after appointment.  No person who might have difficulty in 
  2.31  rendering an unbiased decision may be appointed to serve.  The 
  2.32  court, in its discretion, may appoint one registered, practicing 
  2.33  attorney to the commission who is knowledgeable in eminent 
  2.34  domain matters.  All other commissioners appointed must be 
  2.35  persons actively engaged in the occupation of real estate sales 
  2.36  or real estate appraising or persons knowledgeable in real 
  2.37  estate values.  The order shall fix the time and place of the 
  2.38  first meeting of the three commissioners and prescribe their 
  2.39  compensation.  At the first meeting at the office of the court 
  3.1   administrator of district court the appointees must be sworn by 
  3.2   the court administrator or an authorized deputy and shall take 
  3.3   and sign the following oath before assuming their duties as 
  3.4   commissioners: 
  3.5                        (TITLE OF PROCEEDING) 
  3.6      .................................  does swear under penalty 
  3.7      of perjury as follows: 
  3.8      I will faithfully and justly perform to the best of my 
  3.9      ability, all the duties of the office and trust which I now 
  3.10     assume as commissioner in the above entitled proceeding.  I 
  3.11     further swear that, except as disclosed in writing or on 
  3.12     the record, I have no interest in any of the lands in the 
  3.13     above proceeding or any present or past relationship, 
  3.14     business or personal, with any of the parties to the above 
  3.15     proceeding or any other actual or potential conflict of 
  3.16     interest, and that I will render fair and impartial 
  3.17     decisions, so help me God. 
  3.18     The order may, in the discretion of the court, limit the 
  3.19  title or easement to be acquired by the petitioner by defining 
  3.20  the rights and privileges which the owner of any of the lands 
  3.21  may exercise therein in subordination to the public uses to 
  3.22  which it is appropriated.  In case any commissioner fails to act 
  3.23  or fails to meet the qualifications required by this section, 
  3.24  the court without further notice may appoint another in that 
  3.25  commissioner's place.  
  3.26     The court administrator of court in each county shall post 
  3.27  in the courthouse in a prominent place a notice that a qualified 
  3.28  person may apply to have the person's name placed upon a list of 
  3.29  potential commission appointees for eminent domain proceedings. 
  3.30  The notice must contain the language of the oath which the 
  3.31  commissioners are required to take upon appointment and shall 
  3.32  list the other qualifications set forth in this section.  The 
  3.33  court shall give due consideration to the names appearing on the 
  3.34  list, but is not bound to make appointments from the list. 
  3.35     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
  3.36  275.065, subdivision 3, is amended to read: 
  4.1      Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
  4.2   county auditor shall prepare and the county treasurer shall 
  4.3   deliver after November 10 and on or before November 24 each 
  4.4   year, by first class mail to each taxpayer at the address listed 
  4.5   on the county's current year's assessment roll, a notice of 
  4.6   proposed property taxes.  
  4.7      (b) The commissioner of revenue shall prescribe the form of 
  4.8   the notice. 
  4.9      (c) The notice must inform taxpayers that it contains the 
  4.10  amount of property taxes each taxing authority proposes to 
  4.11  collect for taxes payable the following year.  In the case of a 
  4.12  town, or in the case of the state determined portion of the 
  4.13  school district levy, the final tax amount will be its proposed 
  4.14  tax.  In the case of taxing authorities required to hold a 
  4.15  public meeting under subdivision 6, the notice must clearly 
  4.16  state that each taxing authority, including regional library 
  4.17  districts established under section 134.201, and including the 
  4.18  metropolitan taxing districts as defined in paragraph (i), but 
  4.19  excluding all other special taxing districts and towns, will 
  4.20  hold a public meeting to receive public testimony on the 
  4.21  proposed budget and proposed or final property tax levy, or, in 
  4.22  case of a school district, on the current budget and proposed 
  4.23  property tax levy.  It must clearly state the time and place of 
  4.24  each taxing authority's meeting, a telephone number for the 
  4.25  taxing authority that taxpayers may call if they have questions 
  4.26  related to the notice, and an address where comments will be 
  4.27  received by mail.  
  4.28     (d) The notice must state for each parcel: 
  4.29     (1) the market value of the property as determined under 
  4.30  section 273.11, and used for computing property taxes payable in 
  4.31  the following year and for taxes payable in the current year as 
  4.32  each appears in the records of the county assessor on November 1 
  4.33  of the current year; and, in the case of residential property, 
  4.34  whether the property is classified as homestead or 
  4.35  nonhomestead.  The notice must clearly inform taxpayers of the 
  4.36  years to which the market values apply and that the values are 
  5.1   final values; 
  5.2      (2) the items listed below, shown separately by county, 
  5.3   city or town, state determined school tax net of the education 
  5.4   homestead credit under section 273.1382, voter approved school 
  5.5   levy, other local school levy, and the sum of the special taxing 
  5.6   districts, and as a total of all taxing authorities:  
  5.7      (i) the actual tax for taxes payable in the current year; 
  5.8      (ii) the tax change due to spending factors, defined as the 
  5.9   proposed tax minus the constant spending tax amount; 
  5.10     (iii) the tax change due to other factors, defined as the 
  5.11  constant spending tax amount minus the actual current year tax; 
  5.12  and 
  5.13     (iv) the proposed tax amount. 
  5.14     In the case of a town or the state determined school tax, 
  5.15  the final tax shall also be its proposed tax unless the town 
  5.16  changes its levy at a special town meeting under section 
  5.17  365.52.  If a school district has certified under section 
  5.18  126C.17, subdivision 9, that a referendum will be held in the 
  5.19  school district at the November general election, the county 
  5.20  auditor must note next to the school district's proposed amount 
  5.21  that a referendum is pending and that, if approved by the 
  5.22  voters, the tax amount may be higher than shown on the notice.  
  5.23  In the case of the city of Minneapolis, the levy for the 
  5.24  Minneapolis library board and the levy for Minneapolis park and 
  5.25  recreation shall be listed separately from the remaining amount 
  5.26  of the city's levy.  In the case of the city of St. Paul, the 
  5.27  levy for the St. Paul library agency must be listed separately 
  5.28  from the remaining amount of the city's levy.  In the case of a 
  5.29  parcel where tax increment or the fiscal disparities areawide 
  5.30  tax under chapter 276A or 473F applies, the proposed tax levy on 
  5.31  the captured value or the proposed tax levy on the tax capacity 
  5.32  subject to the areawide tax must each be stated separately and 
  5.33  not included in the sum of the special taxing districts; and 
  5.34     (3) the increase or decrease between the total taxes 
  5.35  payable in the current year and the total proposed taxes, 
  5.36  expressed as a percentage. 
  6.1      For purposes of this section, the amount of the tax on 
  6.2   homesteads qualifying under the senior citizens' property tax 
  6.3   deferral program under chapter 290B is the total amount of 
  6.4   property tax before subtraction of the deferred property tax 
  6.5   amount. 
  6.6      (e) The notice must clearly state that the proposed or 
  6.7   final taxes do not include the following: 
  6.8      (1) special assessments; 
  6.9      (2) levies approved by the voters after the date the 
  6.10  proposed taxes are certified, including bond referenda, school 
  6.11  district levy referenda, and levy limit increase referenda; 
  6.12     (3) amounts necessary to pay cleanup or other costs due to 
  6.13  a natural disaster occurring after the date the proposed taxes 
  6.14  are certified; 
  6.15     (4) amounts necessary to pay tort judgments against the 
  6.16  taxing authority that become final after the date the proposed 
  6.17  taxes are certified; and 
  6.18     (5) the contamination tax imposed on properties which 
  6.19  received market value reductions for contamination. 
  6.20     (f) Except as provided in subdivision 7, failure of the 
  6.21  county auditor to prepare or the county treasurer to deliver the 
  6.22  notice as required in this section does not invalidate the 
  6.23  proposed or final tax levy or the taxes payable pursuant to the 
  6.24  tax levy. 
  6.25     (g) If the notice the taxpayer receives under this section 
  6.26  lists the property as nonhomestead, and satisfactory 
  6.27  documentation is provided to the county assessor by the 
  6.28  applicable deadline, and the property qualifies for the 
  6.29  homestead classification in that assessment year, the assessor 
  6.30  shall reclassify the property to homestead for taxes payable in 
  6.31  the following year. 
  6.32     (h) In the case of class 4 residential property used as a 
  6.33  residence for lease or rental periods of 30 days or more, the 
  6.34  taxpayer must either: 
  6.35     (1) mail or deliver a copy of the notice of proposed 
  6.36  property taxes to each tenant, renter, or lessee; or 
  7.1      (2) post a copy of the notice in a conspicuous place on the 
  7.2   premises of the property.  
  7.3      The notice must be mailed or posted by the taxpayer by 
  7.4   November 27 or within three days of receipt of the notice, 
  7.5   whichever is later.  A taxpayer may notify the county treasurer 
  7.6   of the address of the taxpayer, agent, caretaker, or manager of 
  7.7   the premises to which the notice must be mailed in order to 
  7.8   fulfill the requirements of this paragraph. 
  7.9      (i) For purposes of this subdivision, subdivisions 5a and 
  7.10  6, "metropolitan special taxing districts" means the following 
  7.11  taxing districts in the seven-county metropolitan area that levy 
  7.12  a property tax for any of the specified purposes listed below: 
  7.13     (1) metropolitan council under section 473.132, 473.167, 
  7.14  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
  7.15     (2) metropolitan airports commission under section 473.667, 
  7.16  473.671, or 473.672; and 
  7.17     (3) metropolitan mosquito control commission under section 
  7.18  473.711. 
  7.19     For purposes of this section, any levies made by the 
  7.20  regional rail authorities in the county of Anoka, Carver, 
  7.21  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
  7.22  398A shall be included with the appropriate county's levy and 
  7.23  shall be discussed at that county's public hearing. 
  7.24     (j) If a statutory or home rule charter city or a town has 
  7.25  exercised the local levy option provided by section 473.388, 
  7.26  subdivision 7, it may include in the notice of its proposed 
  7.27  taxes the amount of its proposed taxes attributable to its 
  7.28  exercise of the option.  In the first year of the city or town's 
  7.29  exercise of this option, the statement shall include an estimate 
  7.30  of the reduction of the metropolitan council's tax on the parcel 
  7.31  due to exercise of that option.  The metropolitan council's levy 
  7.32  shall be adjusted accordingly. 
  7.33     [EFFECTIVE DATE.] This section is effective for notices 
  7.34  prepared after the day following final enactment. 
  7.35     Sec. 3.  Minnesota Statutes 2000, section 383A.80, 
  7.36  subdivision 4, is amended to read: 
  8.1      Subd. 4.  [EXPIRATION.] The authority to impose the tax 
  8.2   under this section expires January 1, 2003 2008. 
  8.3      Sec. 4.  Minnesota Statutes 2000, section 383B.80, 
  8.4   subdivision 4, is amended to read: 
  8.5      Subd. 4.  [EXPIRATION.] The authority to impose the tax 
  8.6   under this section expires January 1, 2003 2008. 
  8.7      Sec. 5.  Minnesota Statutes 2000, section 465.73, is 
  8.8   amended to read: 
  8.12     For purposes of constructing, repairing, or acquiring city 
  8.13  halls, town halls, fire halls or fire or rescue equipment any, 
  8.14  or libraries or child care facilities if otherwise authorized by 
  8.15  law, a city, county, or town may borrow up not to 
  8.16  $250,000 exceed $450,000 from (i) funds granted to a rural 
  8.17  electric cooperative organized under chapter 308A by, the United 
  8.18  States Department of Agriculture Rural Business-Cooperative 
  8.19  Service or (ii) directly from or in the form of funds guaranteed 
  8.20  by the Farmers Home Administration Rural Housing Service or 
  8.21  other agency of the United States Department of Agriculture on 
  8.22  by a note secured by a mortgage or other security agreement on 
  8.23  the property purchased with the borrowed funds.  The city, 
  8.24  county, or town may pledge its full faith and credit and assign 
  8.25  or pledge the revenues, if any, from the town halls, fire or 
  8.26  rescue department, or fire hall or facilities or equipment so 
  8.27  financed together with any other properly available funds, 
  8.28  including taxes levied pursuant to section 475.61 to the Farmers 
  8.29  Home Administration or other agency of the United States 
  8.30  Department of Agriculture or its guaranteed lender or a rural 
  8.31  electric cooperative organized under chapter 308A as its grantee 
  8.32  to repay to secure the loan.  The amount of the obligation shall 
  8.33  not be obligation of the note is not to be included when 
  8.34  computing the net debt of the city, county, or town.  An 
  8.35  election shall not be required to authorize the note and 
  8.36  mortgage or assignment of revenues, nor is the approval of the 
  9.1   voters required for the issuance of the note. 
  9.2      Sec. 6.  Minnesota Statutes 2000, section 469.012, 
  9.3   subdivision 1, is amended to read: 
  9.4      Subdivision 1.  [SCHEDULE OF POWERS.] An authority shall be 
  9.5   a public body corporate and politic and shall have all the 
  9.6   powers necessary or convenient to carry out the purposes of 
  9.7   sections 469.001 to 469.047, except that the power to levy and 
  9.8   collect taxes or special assessments is limited to the power 
  9.9   provided in sections 469.027 to 469.033.  Its powers include the 
  9.10  following powers in addition to others granted in sections 
  9.11  469.001 to 469.047:  
  9.12     (1) to sue and be sued; to have a seal, which shall be 
  9.13  judicially noticed, and to alter it; to have perpetual 
  9.14  succession; and to make, amend, and repeal rules consistent with 
  9.15  sections 469.001 to 469.047; 
  9.16     (2) to employ an executive director, technical experts, and 
  9.17  officers, agents, and employees, permanent and temporary, that 
  9.18  it requires, and determine their qualifications, duties, and 
  9.19  compensation; for legal services it requires, to call upon the 
  9.20  chief law officer of the city or to employ its own counsel and 
  9.21  legal staff; so far as practicable, to use the services of local 
  9.22  public bodies in its area of operation, provided that those 
  9.23  local public bodies, if requested, shall make the services 
  9.24  available; 
  9.25     (3) to delegate to one or more of its agents or employees 
  9.26  the powers or duties it deems proper; 
  9.27     (4) within its area of operation, to undertake, prepare, 
  9.28  carry out, and operate projects and to provide for the 
  9.29  construction, reconstruction, improvement, extension, 
  9.30  alteration, or repair of any project or part thereof; 
  9.31     (5) subject to the provisions of section 469.026, to give, 
  9.32  sell, transfer, convey, or otherwise dispose of real or personal 
  9.33  property or any interest therein and to execute leases, deeds, 
  9.34  conveyances, negotiable instruments, purchase agreements, and 
  9.35  other contracts or instruments, and take action that is 
  9.36  necessary or convenient to carry out the purposes of these 
 10.1   sections; 
 10.2      (6) within its area of operation, to acquire real or 
 10.3   personal property or any interest therein by gifts, grant, 
 10.4   purchase, exchange, lease, transfer, bequest, devise, or 
 10.5   otherwise, and by the exercise of the power of eminent domain, 
 10.6   in the manner provided by chapter 117, to acquire real property 
 10.7   which it may deem necessary for its purposes, after the adoption 
 10.8   by it of a resolution declaring that the acquisition of the real 
 10.9   property is necessary to eliminate one or more of the conditions 
 10.10  found to exist in the resolution adopted pursuant to section 
 10.11  469.003 or to provide decent, safe, and sanitary housing for 
 10.12  persons of low and moderate income, or is necessary to carry out 
 10.13  a redevelopment project.  Real property needed or convenient for 
 10.14  a project may be acquired by the authority for the project by 
 10.15  condemnation pursuant to this section.  This includes Prior to 
 10.16  adoption of a resolution authorizing acquisition of property by 
 10.17  condemnation, the governing body of the authority must hold a 
 10.18  public hearing on the proposed acquisition after published 
 10.19  notice in a newspaper of general circulation in the 
 10.20  municipality, which must be made at least one time not less than 
 10.21  ten days nor more than 30 days prior to the date of the 
 10.22  hearing.  The notice must reasonably describe the property to be 
 10.23  acquired and state that the purpose of the hearing is to 
 10.24  consider acquisition by exercise of the authority's powers of 
 10.25  eminent domain.  Not less than ten days before the hearing, 
 10.26  notice of the hearing must also be mailed to the owner of each 
 10.27  parcel proposed to be acquired, but failure to give mailed 
 10.28  notice or any defects in the notice does not invalidate the 
 10.29  acquisition.  For the purpose of giving mailed notice, owners 
 10.30  are determined in accordance with section 429.031, subdivision 
 10.31  1, paragraph (a).  Property acquired by condemnation under this 
 10.32  section may include any property devoted to a public use, 
 10.33  whether or not held in trust, notwithstanding that the property 
 10.34  may have been previously acquired by condemnation or is owned by 
 10.35  a public utility corporation, because the public use in 
 10.36  conformity with the provisions of sections 469.001 to 469.047 
 11.1   shall be deemed a superior public use.  Property devoted to a 
 11.2   public use may be so acquired only if the governing body of the 
 11.3   municipality has approved its acquisition by the authority.  An 
 11.4   award of compensation shall not be increased by reason of any 
 11.5   increase in the value of the real property caused by the 
 11.6   assembly, clearance or reconstruction, or proposed assembly, 
 11.7   clearance or reconstruction for the purposes of sections 469.001 
 11.8   to 469.047 of the real property in an area; 
 11.9      (7) within its area of operation, and without the adoption 
 11.10  of an urban renewal plan, to acquire, by all means as set forth 
 11.11  in clause (6) but without the adoption of a resolution provided 
 11.12  for in clause (6), real property, and to demolish, remove, 
 11.13  rehabilitate, or reconstruct the buildings and improvements or 
 11.14  construct new buildings and improvements thereon, or to so 
 11.15  provide through other means as set forth in Laws 1974, chapter 
 11.16  228, or to grade, fill, and construct foundations or otherwise 
 11.17  prepare the site for improvements.  The authority may dispose of 
 11.18  the property pursuant to section 469.029, provided that the 
 11.19  provisions of section 469.029 requiring conformance to an urban 
 11.20  renewal plan shall not apply.  The authority may finance these 
 11.21  activities by means of the redevelopment project fund or by 
 11.22  means of tax increments or tax increment bonds or by the methods 
 11.23  of financing provided for in section 469.033 or by means of 
 11.24  contributions from the municipality provided for in section 
 11.25  469.041, clause (9), or by any combination of those means.  Real 
 11.26  property with buildings or improvements thereon shall only be 
 11.27  acquired under this clause when the buildings or improvements 
 11.28  are substandard.  The exercise of the power of eminent domain 
 11.29  under this clause shall be limited to real property which 
 11.30  contains, or has contained within the three years immediately 
 11.31  preceding the exercise of the power of eminent domain and is 
 11.32  currently vacant, buildings and improvements which are vacated 
 11.33  and substandard.  Notwithstanding the prior sentence, in cities 
 11.34  of the first class the exercise of the power of eminent domain 
 11.35  under this clause shall be limited to real property which 
 11.36  contains, or has contained within the three years immediately 
 12.1   preceding the exercise of the power of eminent domain, buildings 
 12.2   and improvements which are substandard.  For the purpose of this 
 12.3   clause, substandard buildings or improvements mean hazardous 
 12.4   buildings as defined in section 463.15, subdivision 3, or 
 12.5   buildings or improvements that are dilapidated or obsolescent, 
 12.6   faultily designed, lack adequate ventilation, light, or sanitary 
 12.7   facilities, or any combination of these or other factors that 
 12.8   are detrimental to the safety or health of the community.  The 
 12.9   exercise of the power of eminent domain under this clause is 
 12.10  subject to the notice and hearing requirements described in 
 12.11  clause (6); 
 12.12     (8) within its area of operation, to determine the level of 
 12.13  income constituting low or moderate family income.  The 
 12.14  authority may establish various income levels for various family 
 12.15  sizes.  In making its determination, the authority may consider 
 12.16  income levels that may be established by the Department of 
 12.17  Housing and Urban Development or a similar or successor federal 
 12.18  agency for the purpose of federal loan guarantees or subsidies 
 12.19  for persons of low or moderate income.  The authority may use 
 12.20  that determination as a basis for the maximum amount of income 
 12.21  for admissions to housing development projects or housing 
 12.22  projects owned or operated by it; 
 12.23     (9) to provide in federally assisted projects any 
 12.24  relocation payments and assistance necessary to comply with the 
 12.25  requirements of the Federal Uniform Relocation Assistance and 
 12.26  Real Property Acquisition Policies Act of 1970, and any 
 12.27  amendments or supplements thereto; 
 12.28     (10) to make an agreement with the governing body or bodies 
 12.29  creating the authority which provides exemption from all ad 
 12.30  valorem real and personal property taxes levied or imposed by 
 12.31  the body or bodies creating the authority.  In the case of 
 12.32  low-rent public housing that received financial assistance under 
 12.33  the United States Housing Act of 1937, or successor federal 
 12.34  legislation, an authority may make an agreement with the 
 12.35  governing body or bodies creating the authority to provide 
 12.36  exemption from all real and personal property taxes levied or 
 13.1   imposed by the state, city, county, or other political 
 13.2   subdivision, for which the authority shall make payments in lieu 
 13.3   of taxes to the state, city, county, or other political 
 13.4   subdivisions as provided in section 469.040.  The governing body 
 13.5   shall agree on behalf of all the applicable governing bodies 
 13.6   affected that local cooperation as required by the federal 
 13.7   government shall be provided by the local governing body or 
 13.8   bodies in whose jurisdiction the project is to be located, at no 
 13.9   cost or at no greater cost than the same public services and 
 13.10  facilities furnished to other residents; 
 13.11     (11) to cooperate with or act as agent for the federal 
 13.12  government, the state or any state public body, or any agency or 
 13.13  instrumentality of the foregoing, in carrying out any of the 
 13.14  provisions of sections 469.001 to 469.047 or of any other 
 13.15  related federal, state, or local legislation; and upon the 
 13.16  consent of the governing body of the city to purchase, lease, 
 13.17  manage, or otherwise take over any housing project already owned 
 13.18  and operated by the federal government; 
 13.19     (12) to make plans for carrying out a program of voluntary 
 13.20  repair and rehabilitation of buildings and improvements, and 
 13.21  plans for the enforcement of laws, codes, and regulations 
 13.22  relating to the use of land and the use and occupancy of 
 13.23  buildings and improvements, and to the compulsory repair, 
 13.24  rehabilitation, demolition, or removal of buildings and 
 13.25  improvements.  The authority may develop, test, and report 
 13.26  methods and techniques, and carry out demonstrations and other 
 13.27  activities for the prevention and elimination of slums and 
 13.28  blight; 
 13.29     (13) to borrow money or other property and accept 
 13.30  contributions, grants, gifts, services, or other assistance from 
 13.31  the federal government, the state government, state public 
 13.32  bodies, or from any other public or private sources; 
 13.33     (14) to include in any contract for financial assistance 
 13.34  with the federal government any conditions that the federal 
 13.35  government may attach to its financial aid of a project, not 
 13.36  inconsistent with purposes of sections 469.001 to 469.047, 
 14.1   including obligating itself (which obligation shall be 
 14.2   specifically enforceable and not constitute a mortgage, 
 14.3   notwithstanding any other laws) to convey to the federal 
 14.4   government the project to which the contract relates upon the 
 14.5   occurrence of a substantial default with respect to the 
 14.6   covenants or conditions to which the authority is subject; to 
 14.7   provide in the contract that, in case of such conveyance, the 
 14.8   federal government may complete, operate, manage, lease, convey, 
 14.9   or otherwise deal with the project until the defaults are cured 
 14.10  if the federal government agrees in the contract to reconvey to 
 14.11  the authority the project as then constituted when the defaults 
 14.12  have been cured; 
 14.13     (15) to issue bonds for any of its corporate purposes and 
 14.14  to secure the bonds by mortgages upon property held or to be 
 14.15  held by it or by pledge of its revenues, including grants or 
 14.16  contributions; 
 14.17     (16) to invest any funds held in reserves or sinking funds, 
 14.18  or any funds not required for immediate disbursement, in 
 14.19  property or securities in which savings banks may legally invest 
 14.20  funds subject to their control or in the manner and subject to 
 14.21  the conditions provided in section 118A.04 for the deposit and 
 14.22  investment of public funds; 
 14.23     (17) within its area of operation, to determine where 
 14.24  blight exists or where there is unsafe, unsanitary, or 
 14.25  overcrowded housing; 
 14.26     (18) to carry out studies of the housing and redevelopment 
 14.27  needs within its area of operation and of the meeting of those 
 14.28  needs.  This includes study of data on population and family 
 14.29  groups and their distribution according to income groups, the 
 14.30  amount and quality of available housing and its distribution 
 14.31  according to rentals and sales prices, employment, wages, 
 14.32  desirable patterns for land use and community growth, and other 
 14.33  factors affecting the local housing and redevelopment needs and 
 14.34  the meeting of those needs; to make the results of those studies 
 14.35  and analyses available to the public and to building, housing, 
 14.36  and supply industries; 
 15.1      (19) if a local public body does not have a planning agency 
 15.2   or the planning agency has not produced a comprehensive or 
 15.3   general community development plan, to make or cause to be made 
 15.4   a plan to be used as a guide in the more detailed planning of 
 15.5   housing and redevelopment areas; 
 15.6      (20) to lease or rent any dwellings, accommodations, lands, 
 15.7   buildings, structures, or facilities included in any project 
 15.8   and, subject to the limitations contained in sections 469.001 to 
 15.9   469.047 with respect to the rental of dwellings in housing 
 15.10  projects, to establish and revise the rents or charges therefor; 
 15.11     (21) to own, hold, and improve real or personal property 
 15.12  and to sell, lease, exchange, transfer, assign, pledge, or 
 15.13  dispose of any real or personal property or any interest 
 15.14  therein; 
 15.15     (22) to insure or provide for the insurance of any real or 
 15.16  personal property or operations of the authority against any 
 15.17  risks or hazards; 
 15.18     (23) to procure or agree to the procurement of government 
 15.19  insurance or guarantees of the payment of any bonds or parts 
 15.20  thereof issued by an authority and to pay premiums on the 
 15.21  insurance; 
 15.22     (24) to make expenditures necessary to carry out the 
 15.23  purposes of sections 469.001 to 469.047; 
 15.24     (25) to enter into an agreement or agreements with any 
 15.25  state public body to provide informational service and 
 15.26  relocation assistance to families, individuals, business 
 15.27  concerns, and nonprofit organizations displaced or to be 
 15.28  displaced by the activities of any state public body; 
 15.29     (26) to compile and maintain a catalog of all vacant, open 
 15.30  and undeveloped land, or land which contains substandard 
 15.31  buildings and improvements as that term is defined in clause 
 15.32  (7), that is owned or controlled by the authority or by the 
 15.33  governing body within its area of operation and to compile and 
 15.34  maintain a catalog of all authority owned real property that is 
 15.35  in excess of the foreseeable needs of the authority, in order to 
 15.36  determine and recommend if the real property compiled in either 
 16.1   catalog is appropriate for disposal pursuant to the provisions 
 16.2   of section 469.029, subdivisions 9 and 10; 
 16.3      (27) to recommend to the city concerning the enforcement of 
 16.4   the applicable health, housing, building, fire prevention, and 
 16.5   housing maintenance code requirements as they relate to 
 16.6   residential dwelling structures that are being rehabilitated by 
 16.7   low- or moderate-income persons pursuant to section 469.029, 
 16.8   subdivision 9, for the period of time necessary to complete the 
 16.9   rehabilitation, as determined by the authority; 
 16.10     (28) to recommend to the city the initiation of municipal 
 16.11  powers, against certain real properties, relating to repair, 
 16.12  closing, condemnation, or demolition of unsafe, unsanitary, 
 16.13  hazardous, and unfit buildings, as provided in section 469.041, 
 16.14  clause (5); 
 16.15     (29) to sell, at private or public sale, at the price or 
 16.16  prices determined by the authority, any note, mortgage, lease, 
 16.17  sublease, lease purchase, or other instrument or obligation 
 16.18  evidencing or securing a loan made for the purpose of economic 
 16.19  development, job creation, redevelopment, or community 
 16.20  revitalization by a public agency to a business, for-profit or 
 16.21  nonprofit organization, or an individual; 
 16.22     (30) within its area of operation, to acquire and sell real 
 16.23  property that is benefited by federal housing assistance 
 16.24  payments, other rental subsidies, interest reduction payments, 
 16.25  or interest reduction contracts for the purpose of preserving 
 16.26  the affordability of low- and moderate-income multifamily 
 16.27  housing; 
 16.28     (31) to apply for, enter into contracts with the federal 
 16.29  government, administer, and carry out a section 8 program.  
 16.30  Authorization by the governing body creating the authority to 
 16.31  administer the program at the authority's initial application is 
 16.32  sufficient to authorize operation of the program in its area of 
 16.33  operation for which it was created without additional local 
 16.34  governing body approval.  Approval by the governing body or 
 16.35  bodies creating the authority constitutes approval of a housing 
 16.36  program for purposes of any special or general law requiring 
 17.1   local approval of section 8 programs undertaken by city, county, 
 17.2   or multicounty authorities; and 
 17.3      (32) to secure a mortgage or loan for a rental housing 
 17.4   project by obtaining the appointment of receivers or assignments 
 17.5   of rents and profits under sections 559.17 and 576.01, except 
 17.6   that the limitation relating to the minimum amounts of the 
 17.7   original principal balances of mortgages specified in sections 
 17.8   559.17, subdivision 2, clause (2); and 576.01, subdivision 2, 
 17.9   does not apply. 
 17.10     Sec. 7.  Minnesota Statutes 2000, section 469.034, 
 17.11  subdivision 2, is amended to read: 
 17.12     Subd. 2.  [GENERAL OBLIGATION REVENUE BONDS.] (a) An 
 17.13  authority may pledge the general obligation of the general 
 17.14  jurisdiction governmental unit as additional security for bonds 
 17.15  payable from income or revenues of the project or the 
 17.16  authority.  The authority must find that the pledged revenues 
 17.17  will equal or exceed 110 percent of the principal and interest 
 17.18  due on the bonds for each year.  The proceeds of the bonds must 
 17.19  be used for a qualified housing development project or 
 17.20  projects.  The obligations must be issued and sold in the manner 
 17.21  and following the procedures provided by chapter 475, except the 
 17.22  obligations are not subject to approval by the electors and the 
 17.23  maturities may extend to not more than 30 years from the 
 17.24  estimated date of completion of the project.  The authority is 
 17.25  the municipality for purposes of chapter 475.  
 17.26     (b) The principal amount of the issue must be approved by 
 17.27  the governing body of the general jurisdiction governmental unit 
 17.28  whose general obligation is pledged.  Public hearings must be 
 17.29  held on issuance of the obligations by both the authority and 
 17.30  the general jurisdiction governmental unit.  The hearings must 
 17.31  be held at least 15 days, but not more than 120 days, before the 
 17.32  sale of the obligations. 
 17.33     (c) The maximum amount of general obligation bonds that may 
 17.34  be issued and outstanding under this section equals the greater 
 17.35  of (1) one-half of one percent of the taxable market value of 
 17.36  the general jurisdiction governmental unit whose general 
 18.1   obligation which includes a tax on property is pledged, or (2) 
 18.2   $3,000,000.  In the case of county or multicounty general 
 18.3   obligation bonds, the outstanding general obligation bonds of 
 18.4   all cities in the county or counties issued under this 
 18.5   subdivision must be added in calculating the limit under clause 
 18.6   (1). 
 18.7      (d) "General jurisdiction governmental unit" means the city 
 18.8   in which the housing development project is located.  In the 
 18.9   case of a county or multicounty authority, the county or 
 18.10  counties may act as the general jurisdiction governmental unit.  
 18.11  In the case of a multicounty authority, the pledge of the 
 18.12  general obligation is a pledge of a tax on the taxable property 
 18.13  in each of the counties. 
 18.14     (e) "Qualified housing development project" means a housing 
 18.15  development project providing housing either for the elderly or 
 18.16  for individuals and families with incomes not greater than 80 
 18.17  percent of the median family income as estimated by the United 
 18.18  States Department of Housing and Urban Development for the 
 18.19  standard metropolitan statistical area or the nonmetropolitan 
 18.20  county in which the project is located, and will be owned by the 
 18.21  authority for the term of the bonds.  A qualified housing 
 18.22  development project may admit nonelderly individuals and 
 18.23  families with higher incomes if: 
 18.24     (1) three years have passed since initial occupancy; 
 18.25     (2) the authority finds the project is experiencing 
 18.26  unanticipated vacancies resulting in insufficient revenues, 
 18.27  because of changes in population or other unforeseen 
 18.28  circumstances that occurred after the initial finding of 
 18.29  adequate revenues; and 
 18.30     (3) the authority finds a tax levy or payment from general 
 18.31  assets of the general jurisdiction governmental unit will be 
 18.32  necessary to pay debt service on the bonds if higher income 
 18.33  individuals or families are not admitted. 
 18.34     Sec. 8.  Minnesota Statutes 2000, section 469.102, 
 18.35  subdivision 2, is amended to read: 
 18.36     Subd. 2.  [DETAIL; MATURITY.] The authority with the 
 19.1   consent of its city's council shall set the date, denominations, 
 19.2   place of payment, form, and details of the bonds.  The bonds 
 19.3   must mature serially.  The first installment is due in not more 
 19.4   than three years and the last in not more than 20 30 years from 
 19.5   the date of issuance.  
 19.6      Sec. 9.  Minnesota Statutes 2000, section 469.153, is 
 19.7   amended by adding a subdivision to read: 
 19.8      Subd. 13.  [RELATED PUBLIC IMPROVEMENTS.] "Related public 
 19.9   improvements" means any public improvements described in section 
 19.10  429.021, that are acquired and constructed in connection with 
 19.11  the project and are financed by the contracting party under the 
 19.12  revenue agreement. 
 19.13     Sec. 10.  Minnesota Statutes 2000, section 469.155, 
 19.14  subdivision 3, is amended to read: 
 19.15     Subd. 3.  [REVENUE BONDS.] (a) It may issue revenue bonds, 
 19.16  in anticipation of the collection of revenues of a project to be 
 19.17  situated within the state, to finance, in whole or in part, the 
 19.18  cost of the acquisition, construction, reconstruction, 
 19.19  improvement, betterment, or extension thereof and of any related 
 19.20  public improvements.  
 19.21     (b) It may issue revenue bonds to purchase the obligations 
 19.22  of local government units located in whole or in part within the 
 19.23  boundaries of the municipality.  The proceeds of bonds issued to 
 19.24  purchase obligations as provided under this paragraph may be 
 19.25  disbursed or otherwise used to pay underwriter's or placement 
 19.26  fees, expenses, or other costs of issuance and sale for the 
 19.27  bonds only on a pro rata basis determined with respect to the 
 19.28  portion of the proceeds that are used to purchase the 
 19.29  obligations.  The municipality may not pay the underwriter's or 
 19.30  placement fees, expenses, or other costs of issuance and sale 
 19.31  out of other money. 
 19.32     Sec. 11.  Minnesota Statutes 2000, section 469.155, 
 19.33  subdivision 4, is amended to read: 
 19.34     Subd. 4.  [REFINANCING NONPROFIT FACILITIES.] It may issue 
 19.35  revenue bonds to pay, purchase, or discharge all or any part of 
 19.36  the outstanding indebtedness of a contracting party that is an a 
 20.1   qualifying organization described in section 501(c)(3) of the 
 20.2   Internal Revenue Code primarily engaged in health care-related 
 20.3   activities or in activities for mentally or physically disabled 
 20.4   persons or that is engaged primarily in the operation of one or 
 20.5   more nonprofit hospitals or nursing homes previously incurred in 
 20.6   the acquisition or betterment of its existing facilities to the 
 20.7   extent deemed necessary by the governing body of the 
 20.8   municipality or redevelopment agency; this may include any 
 20.9   unpaid interest on the indebtedness accrued or to accrue to the 
 20.10  date on which the indebtedness is finally paid, and any premium 
 20.11  the governing body of the municipality or redevelopment agency 
 20.12  determines to be necessary to be paid to pay, purchase, or 
 20.13  defease the outstanding indebtedness.  If revenue bonds are 
 20.14  issued for this purpose, the refinancing and the existing 
 20.15  properties of the contracting party shall be deemed to 
 20.16  constitute a project under section 469.153, subdivision 2, 
 20.17  clause (b), (c), or (d).  
 20.18     For purposes of this subdivision, "qualifying organization" 
 20.19  means an organization that is primarily engaged in one or more 
 20.20  of the following: 
 20.21     (1) health care related activities; 
 20.22     (2) activities for mentally or physically disabled persons; 
 20.23     (3) the operation of one or more nonprofit hospitals or 
 20.24  nursing homes; 
 20.25     (4) educational activities as an elementary, secondary, or 
 20.26  post-secondary school; 
 20.27     (5) presentation of artistic performances or arts 
 20.28  education, such as theaters and museums; or 
 20.29     (6) providing social services, such as providing assistance 
 20.30  to the poor, distressed, or underprivileged. 
 20.31     Sec. 12.  Minnesota Statutes 2000, section 469.155, 
 20.32  subdivision 8, is amended to read: 
 20.35  all contracts, execute all instruments, and do all things 
 20.36  necessary or convenient in the exercise of the powers granted in 
 21.1   sections 469.152 to 469.165, or in the performance of its 
 21.2   covenants or duties, or in order to secure the payment of its 
 21.3   bonds.  It may enter into a revenue agreement authorizing the 
 21.4   contracting party, subject to any terms and conditions the 
 21.5   municipality or redevelopment agency finds necessary or 
 21.6   desirable and proper, to provide for the construction, 
 21.7   acquisition, and installation of the buildings, improvements, 
 21.8   and equipment to be included in the project and any related 
 21.9   public improvements by any means legally available to the 
 21.10  contracting party and in the manner determined by the 
 21.11  contracting party and without advertisement for bids unless 
 21.12  advertisement by the contracting party is otherwise required by 
 21.13  law.  
 21.14     Sec. 13.  Minnesota Statutes 2000, section 469.157, is 
 21.15  amended to read: 
 21.17     In determining the cost of a project, the governing body 
 21.18  may include all cost and estimated cost of the acquisition, 
 21.19  construction, reconstruction, improvement, betterment, and 
 21.20  extension of the project and any related public improvements, 
 21.21  all engineering, inspection, fiscal, legal, administrative, and 
 21.22  printing expense, the interest which it is estimated will accrue 
 21.23  during the construction period and for six months thereafter on 
 21.24  money borrowed or which it is estimated will be borrowed 
 21.25  pursuant to sections 469.152 to 469.165, and bond reserves and 
 21.26  premiums for insurance of lease rentals pledged to pay the bonds.
 21.27     Sec. 14.  [471.656] [LIMITS ON BOND ISSUANCE FOR 
 21.29     Subdivision 1.  [GENERAL RULE.] Notwithstanding any law to 
 21.30  the contrary, neither a municipality nor an authority may issue 
 21.31  obligations to finance the acquisition or improvement of real 
 21.32  property located outside of the corporate boundaries of the 
 21.33  issuer. 
 21.34     Subd. 2.  [EXEMPTIONS.] Subdivision 1 does not apply if: 
 21.35     (1) the issuing governmental unit is the owner of the 
 21.36  property to be financed; or 
 22.1      (2) for property or two or more properties constituting a 
 22.2   single project located in a city, the governing body of the city 
 22.3   consents, by resolution, to issuance of the obligations; or 
 22.4      (3) for property or two or more properties constituting a 
 22.5   single project located outside of a city or in two or more 
 22.6   cities or towns, the governing body of the county in which the 
 22.7   property is located consents, by resolution, to issuance of the 
 22.8   obligations; or 
 22.9      (4) the obligations are issued under a joint powers 
 22.10  agreement, whether issued by a joint powers board or by one or 
 22.11  more of the parties to the joint powers agreement, and the 
 22.12  property is located entirely within the boundaries of one or 
 22.13  more of the parties to the joint powers agreement; or 
 22.14     (5) the issuer is a municipality or municipalities acting 
 22.15  under a joint powers agreement and the financing is for the 
 22.16  acquisition or improvement of property, facilities, or rights of 
 22.17  use or access thereto which are necessary or useful in the 
 22.18  operation of municipal public utilities; or 
 22.19     (6) the issuer is a municipal power agency established 
 22.20  under chapter 453 or a municipal gas agency established under 
 22.21  chapter 453A.  
 22.22     Subd. 3.  [DEFINITIONS.] (a) The definitions in section 
 22.23  475.51 apply to this section and the following terms have the 
 22.24  meanings given in this subdivision.  
 22.25     (b) "Authority" means, whether created under general or 
 22.26  special law: 
 22.27     (1) a housing and redevelopment authority; 
 22.28     (2) an economic development authority; 
 22.29     (3) a port authority; 
 22.30     (4) a rural development financing authority; or 
 22.31     (5) other similar local government entities that are 
 22.32  authorized by law to issue obligations. 
 22.33     (c) "Municipal public utilities" means the provision by a 
 22.34  municipality of electricity, natural gas, water, waste water 
 22.35  removal and treatment, telecommunications, district heating, or 
 22.36  cable television and related services. 
 23.1      (d) "Owner of the property" means the entity or entities 
 23.2   that are the fee or equitable owners and that are economically 
 23.3   at risk with regard to the property. 
 23.4      (e) "Real property" includes an easement and improvements 
 23.5   made to a leasehold of real property. 
 23.6      [EFFECTIVE DATE.] This section is effective for obligations 
 23.7   issued or sold after June 30, 2002. 
 23.8      Sec. 15.  Minnesota Statutes 2000, section 473.252, 
 23.9   subdivision 3, is amended to read: 
 23.10     Subd. 3.  [DISTRIBUTION OF FUNDS.] (a) The council must use 
 23.11  the funds in the account to make grants to municipalities or 
 23.12  development authorities for the cleanup of polluted land in the 
 23.13  metropolitan area.  A grant to a metropolitan county or a 
 23.14  development authority must be used for a project in a 
 23.15  participating municipality.  The council shall prescribe and 
 23.16  provide the grant application form to municipalities.  The 
 23.17  council must consider the probability of funding from other 
 23.18  sources when making grants under this section. 
 23.19     (b)(1) The legislature expects that applications for grants 
 23.20  will exceed the available funds and the council will be able to 
 23.21  provide grants to only some of the applicant municipalities.  If 
 23.22  applications for grants for qualified sites exceed the available 
 23.23  funds, the council shall make grants that provide the highest 
 23.24  return in public benefits for the public costs incurred, that 
 23.25  encourage commercial and industrial development that will lead 
 23.26  to the preservation or growth of living-wage jobs or the 
 23.27  production of affordable housing, and that enhance the tax base 
 23.28  of the recipient municipality. 
 23.29     (2) In making grants, the council shall establish regular 
 23.30  application deadlines in which grants will be awarded from the 
 23.31  available money in the account.  If the council provides for 
 23.32  application cycles of less than six-month intervals, the council 
 23.33  must reserve at least 40 percent of the receipts of the account 
 23.34  for a year for application deadlines that occur in the second 
 23.35  half of the year.  If the applications for grants exceed the 
 23.36  available funds for an application cycle, no more than one-half 
 24.1   of the funds may be granted to projects in a statutory or home 
 24.2   rule charter city and no more than three-quarters of the funds 
 24.3   may be granted to projects located in cities of the first class. 
 24.4      (c) A municipality may use the grant to provide a portion 
 24.5   of the local match requirement for project costs that qualify 
 24.6   for a grant under sections 116J.551 to 116J.557. 
 24.7      Sec. 16.  Minnesota Statutes 2000, section 473.39, is 
 24.8   amended by adding a subdivision to read: 
 24.9      Subd. 1i.  [OBLIGATIONS.] After July 1, 2002, in addition 
 24.10  to the authority in subdivisions 1a, 1b, 1c, 1d, 1e, 1g, and 1h, 
 24.11  the council may issue certificates of indebtedness, bonds, or 
 24.12  other obligations under this section in an amount not exceeding 
 24.13  $54,000,000 for capital expenditures as prescribed in the 
 24.14  council's regional transit master plan and transit capital 
 24.15  improvement program and for related costs, including the costs 
 24.16  of issuance and sale of the obligations, but not for computer 
 24.17  software, or for construction, maintenance, or operation of 
 24.18  light rail transit or commuter rail. 
 24.19     Sec. 17.  [APPLICATION.] 
 24.20     Sections 15 and 16 apply in the counties of Anoka, Carver, 
 24.21  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 24.22     Sec. 18.  Minnesota Statutes 2000, section 475.58, is 
 24.23  amended by adding a subdivision to read: 
 24.24     Subd. 3b.  [STREET RECONSTRUCTION.] (a) A municipality may, 
 24.25  without regard to the election requirement under subdivision 1, 
 24.26  issue and sell obligations for street reconstruction, if the 
 24.27  following conditions are met: 
 24.28     (1) the streets are reconstructed under a street 
 24.29  reconstruction plan that describes the streets to be 
 24.30  reconstructed, the estimated costs, and any planned 
 24.31  reconstruction of other streets in the municipality over the 
 24.32  next five years, and the plan and issuance of the obligations 
 24.33  has been approved by a vote of all of the members of the 
 24.34  governing body following a public hearing for which notice has 
 24.35  been published in the official newspaper at least ten days but 
 24.36  not more than 28 days prior to the hearing; and 
 25.1      (2) if a petition requesting a vote on the issuance is 
 25.2   signed by voters equal to five percent of the votes cast in the 
 25.3   last municipal general election and is filed with the municipal 
 25.4   clerk within 30 days of the public hearing, the municipality may 
 25.5   issue the bonds only after obtaining the approval of a majority 
 25.6   of the voters voting on the question of the issuance of the 
 25.7   obligations. 
 25.8      (b) Obligations issued under this subdivision are subject 
 25.9   to the debt limit of the municipality and are not excluded from 
 25.10  net debt under section 475.51, subdivision 4. 
 25.11     Sec. 19.  Minnesota Statutes 2000, section 641.23, is 
 25.12  amended to read: 
 25.13     641.23 [FUNDS, HOW PROVIDED.] 
 25.14     Before any contract is made for the erection of a county 
 25.15  jail, sheriff's residence, or both, the county board shall 
 25.16  either levy a sufficient tax to provide the necessary funds, or 
 25.17  issue county bonds therefor in accordance with the provisions of 
 25.18  chapter 475, provided that, unless the issuance of the bonds is 
 25.19  approved by the majority of voters voting on the question of 
 25.20  their issuance, no election is required if the amount of all 
 25.21  bonds issued for this purpose and interest on them which are due 
 25.22  and payable in any year shall does not exceed an amount equal to 
 25.23  0.09671 percent of market value of taxable property within the 
 25.24  county, as last determined before the bonds are issued.  
 25.25     Sec. 20.  Laws 1965, chapter 326, section 1, subdivision 5, 
 25.26  as amended by Laws 1975, chapter 110, section 1, Laws 1985, 
 25.27  chapter 87, section 3, and Laws 1998, chapter 389, article 11, 
 25.28  section 11, is amended to read: 
 25.30  INDUSTRIAL DEVELOPMENT.] Promotion of tourist, agricultural and 
 25.31  industrial development.  The amount to be spent annually for the 
 25.32  purposes of this subdivision shall not exceed $4 $10 per capita 
 25.33  of the county's population. 
 25.34     Sec. 21.  Laws 1967, chapter 170, section 1, subdivision 5, 
 25.35  as amended by Laws 1985, chapter 87, section 6, and Laws 1998, 
 25.36  chapter 389, article 11, section 12, is amended to read: 
 26.1      Subd. 5.  Promotion of tourist, agricultural and industrial 
 26.2   developments.  The amount to be spent annually for the purposes 
 26.3   of this subdivision shall not exceed $4 $10 per capita of the 
 26.4   county's population. 
 26.6   DEBT.] 
 26.7      (a) In addition to other levies authorized by law, the 
 26.8   Southwest Regional Development Commission may levy in each year 
 26.9   through 2010, for taxes payable through 2011, an additional 
 26.10  amount sufficient to retire its remaining debt in connection 
 26.11  with the Prairie Expo project located in Worthington not to 
 26.12  exceed $232,080 annually. 
 26.13     (b) The commission may issue bonds or other obligations 
 26.14  under Minnesota Statutes, chapter 475, in an aggregate principal 
 26.15  amount not to exceed $1,632,224, to retire the debt sooner.  In 
 26.16  that case the levy authorized in paragraph (a) may be used for 
 26.17  debt service on the bonds or other obligations, issued to retire 
 26.18  the debt. 
 26.19     [EFFECTIVE DATE; LOCAL APPROVAL.] (a) This section is only 
 26.20  effective as to all affected government bodies on the day after 
 26.21  the last act of compliance under paragraphs (b) and (c) is 
 26.22  timely completed. 
 26.23     (b) The governing body of the Southwest Regional 
 26.24  Development Commission and its chief clerical officer have 
 26.25  timely completed their compliance with Minnesota Statutes, 
 26.26  section 645.021, subdivisions 2 and 3. 
 26.27     (c) The governing body of each county in the development 
 26.28  region and its chief clerical officer have timely completed 
 26.29  their compliance with Minnesota Statutes, section 645.021, 
 26.30  subdivisions 2 and 3. 
 26.31     Sec. 23.  Laws 1971, chapter 773, section 1, subdivision 2, 
 26.32  as amended by Laws 1974, chapter 351, section 5, Laws 1976, 
 26.33  chapter 234, sections 1 and 7, Laws 1978, chapter 788, section 
 26.34  1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, 
 26.35  section 1, Laws 1988, chapter 513, section 1, Laws 1992, chapter 
 26.36  511, article 9, section 23, and Laws 1998, chapter 389, article 
 27.1   3, section 27, is amended to read: 
 27.2      Subd. 2.  For each of the years through 2003 to 2013, the 
 27.3   city of St. Paul is authorized to issue bonds in the aggregate 
 27.4   principal amount of $15,000,000 $20,000,000 for each year; or in 
 27.5   an amount equal to one-fourth of one percent of the assessors 
 27.6   estimated market value of taxable property in St. Paul, 
 27.7   whichever is greater, provided that no more than $15,000,000 of 
 27.8   bonds is authorized to be issued in any year, unless St. Paul's 
 27.9   local general obligation debt as defined in this section is less 
 27.10  than six percent of market value calculated as of December 31 of 
 27.11  the preceding year; but at no time shall the aggregate principal 
 27.12  amount of bonds authorized exceed $18,000,000 in 1998, 
 27.13  $18,000,000 in 1999, $19,000,000 in 2000, $19,000,000 in 2001, 
 27.14  $19,500,000 in 2002, and $20,000,000 in 2003. 
 27.15     Sec. 24.  Laws 1989, chapter 211, section 8, as amended by 
 27.16  Laws 1992, chapter 505, section 3, is amended to read: 
 27.17     Sec. 8.  [COOK COUNTY; HOSPITAL DISTRICT.] 
 27.18     Subdivision 1.  [CREATION; REFERENDUM.] The board of 
 27.19  commissioners of Cook county may by resolution create a Cook 
 27.20  county hospital district.  The resolution providing for creation 
 27.21  of the district must be published in the official newspaper of 
 27.22  the county.  If within ten days after the publication a petition 
 27.23  is filed with the county board that is signed by qualified 
 27.24  voters of the county at least equal in number to ten percent of 
 27.25  the number of voters voting at the most recent election of 
 27.26  county commissioners, requesting a referendum on the resolution, 
 27.27  it shall not be effective until it is approved by a majority of 
 27.28  qualified voters voting on the question at a special or general 
 27.29  election.  
 27.30     Subd. 2.  [OPERATION OF DISTRICT.] A hospital district 
 27.31  created under this section shall be subject to Minnesota 
 27.32  Statutes, sections 397.06 to 397.102 447.32, except subdivision 
 27.33  1, to 447.41, and except as provided otherwise in this act.  
 27.34     Subd. 3.  [BOARD.] Notwithstanding Minnesota Statutes, 
 27.35  section 397.06 447.32, the board of the district shall be 
 27.36  comprised of one member from each county commissioner district 
 28.1   elected by the voters at the first general election in the 
 28.2   county after the resolution has become effective.  At the 1992 
 28.3   general election, the board members from districts one, three, 
 28.4   and five shall be elected to two-year terms and board members 
 28.5   from districts two and four to four-year terms.  Their 
 28.6   successors shall be elected to regular four-year terms in 1994, 
 28.7   1996, and thereafter.  Terms shall begin on the first day of 
 28.8   January following the election.  
 28.9      If members are elected in 1990, their terms shall be two 
 28.10  years.  When the district is first created, the county 
 28.11  commissioner from each district shall appoint a member of the 
 28.12  board to serve until the commencement of the term of a successor.
 28.13     When a vacancy occurs, the county commissioner from the 
 28.14  district affected majority of the remaining members of the board 
 28.15  of the hospital district shall appoint a member to serve until 
 28.16  January 1 following the next general election in the county, 
 28.17  when at which a successor shall be elected for a full regular 
 28.18  term if the full regular term of the seat that had the vacancy 
 28.19  is expiring on that January 1 or otherwise, for the unexpired 
 28.20  remainder of the regular that seat's term. 
 28.21     Subd. 4.  [TAX LEVY.] The tax levied under Minnesota 
 28.22  Statutes, section 397.09 447.34, shall not exceed $300,000 in 
 28.23  any year, and its proceeds may be used for all purposes of the 
 28.24  hospital district. 
 28.25     Subd. 5.  [TERRITORY.] The territory of the entire county 
 28.26  of Cook is the hospital district. 
 28.27     Subd. 6.  [REFERENCES.] The county acts in the place of 
 28.28  cities and towns for purposes of Minnesota Statutes, sections 
 28.29  447.32, except subdivision 1, to 447.41; and all references made 
 28.30  to hospital districts in Minnesota Statutes, sections 447.32, 
 28.31  except subdivision 1, to 447.41, apply to the Cook county 
 28.32  hospital district. 
 28.33     Subd. 7.  [APPLICATION.] Minnesota Statutes, section 
 28.34  447.38, subdivision 2, does not apply to the hospital district 
 28.35  created under this section. 
 28.36     [EFFECTIVE DATE.] For purposes of Minnesota Statutes, 
 29.1   section 645.021, subdivisions 2 and 3, Cook county and the Cook 
 29.2   county hospital district are the local governmental units 
 29.3   affected.  This section is effective the day after the latter of 
 29.4   the governing bodies of: 
 29.5      (1) Cook county and its chief clerical officer; and 
 29.6      (2) the Cook county hospital district and its chief 
 29.7   clerical officer; 
 29.8   timely complete their compliance with Minnesota Statutes, 
 29.9   section 645.021, subdivisions 2 and 3. 
 29.10     Sec. 25.  [SOUTH ST. PAUL; SINGLE-FAMILY HOUSING.] 
 29.11     Due to the shortage of single-family housing in the city of 
 29.12  South St. Paul, the legislature finds and declares that it is a 
 29.13  public purpose for the city to facilitate the construction of 
 29.14  single-family homes to the greatest extent possible.  The city 
 29.15  of South St. Paul may convey to a private person, firm, 
 29.16  partnership, corporation, or other entity a parcel of real 
 29.17  estate acquired from the Minnesota department of transportation 
 29.18  by quit claim deed, that parcel described as:  "That part of the 
 29.19  Southwest Quarter of the Northwest Quarter of Section 28, 
 29.20  Township 28 North, Range 22 West, Dakota County, Minnesota, 
 29.21  described as follows: 
 29.22     Beginning at the West Quarter corner of said Section 28; 
 29.23  thence East on the East and West Quarter line of said Section 28 
 29.24  a distance of 570 feet; thence run Northwesterly to a point on 
 29.25  the East line of the West 221.5 feet of said Southwest Quarter 
 29.26  of the Northwest Quarter, distant 280 feet North of its 
 29.27  intersection with the East and West Quarter line of said Section 
 29.28  28; thence run Northwesterly to a point on the West line of said 
 29.29  Section 28, distant 375 feet North of the West Quarter corner 
 29.30  thereof; thence run South on said West section line 375 feet to 
 29.31  the point of beginning."  
 29.32     The legislature declares that the conveyance to a private 
 29.33  person, firm, partnership, corporation, or other entity for the 
 29.34  construction of single-family residential dwellings is a public 
 29.35  purpose.  
 29.36     [EFFECTIVE DATE.] This section is effective without local 
 30.1   approval on the day following its final enactment. 
 30.4      Subdivision 1.  [AUTHORIZATION.] The region nine 
 30.5   development commission may incorporate and authorize the 
 30.6   incorporation of a nonprofit corporation to reduce dependence on 
 30.7   tax dollars in filling regional service gaps and funding rural 
 30.8   programs by improving the region's access to other funding 
 30.9   sources. 
 30.10     Subd. 2.  [BOARD OF DIRECTORS.] The corporation must be 
 30.11  governed by a board of nine directors.  The directors must be 
 30.12  named by the region nine development commission.  No more than 
 30.13  five of the directors may be persons currently serving on the 
 30.14  region nine development commission.  Board members must not be 
 30.15  compensated for their services but may be reimbursed for 
 30.16  reasonable expenses incurred in connection with their duties as 
 30.17  board members. 
 30.18     Subd. 3.  [ARTICLES AND BYLAWS.] The entity must be 
 30.19  incorporated under Minnesota Statutes, chapter 317A, and 
 30.20  otherwise must comply with Minnesota Statutes, chapter 317A, 
 30.21  except to the extent Minnesota Statutes, chapter 317A, is 
 30.22  inconsistent with this section. 
 30.23     Subd. 4.  [EMPLOYEES.] Persons employed by the nonprofit 
 30.24  corporation are not public employees and must not participate in 
 30.25  retirement, deferred compensation, insurance, or other plans 
 30.26  that apply to public employees generally. 
 30.27     Subd. 5.  [CONTRACTING.] The region nine development 
 30.28  commission may enter into management contracts or lease 
 30.29  agreements, or both, with a nonprofit corporation that is 
 30.30  established according to this act. 
 30.31     Subd. 6.  [STATUTORY COMPLIANCE.] (a) Minnesota Statutes, 
 30.32  section 16A.695, applies to a management contract or lease 
 30.33  agreement entered into by the region nine development commission 
 30.34  and a nonprofit corporation established according to this act. 
 30.35     (b) The nonprofit corporation must comply with Minnesota 
 30.36  Statutes, section 465.719, subdivisions 9, 10, 11, 12, 13, and 
 31.1   14. 
 31.2      Sec. 27.  [ANOKA COUNTY DEBT AUTHORITY.] 
 31.3      Subdivision 1.  [AUTHORITY TO INCUR DEBT.] (a) To finance 
 31.4   the cost of designing, constructing, and acquiring public safety 
 31.5   communication system infrastructure and equipment, the governing 
 31.6   body of Anoka county may issue: 
 31.7      (1) capital improvement bonds under the provisions of 
 31.8   Minnesota Statutes, section 373.40, as if the infrastructure and 
 31.9   equipment qualified as a "capital improvement" within the 
 31.10  meaning of Minnesota Statutes, section 373.40, subdivision 1, 
 31.11  paragraph (b); and 
 31.12     (2) capital notes under the provisions of Minnesota 
 31.13  Statutes, section 373.01, subdivision 3, as if the equipment 
 31.14  qualified as "capital equipment" within the meaning of section 
 31.15  373.01, subdivision 3. 
 31.16     (b) The original principal amount of the bonds and the 
 31.17  capital notes issued under this section may not exceed 
 31.18  $12,500,000. 
 31.19     Subd. 2.  [TREATMENT OF LEVY.] Notwithstanding Minnesota 
 31.20  Statutes, sections 275.065, subdivision 3, and 276.04, the 
 31.21  county may report the tax attributable to any levy to pay 
 31.22  principal and interest on bonds or notes issued under this 
 31.23  section as a separate line item on the proposed property tax 
 31.24  notice and the property tax statement. 
 31.25     Subd. 3.  [EXPIRATION.] This section expires ten years 
 31.26  after the first year in which the county issues a note or bond 
 31.27  under this section.  The county may not issue a bond or note 
 31.28  under this section with a maturity or payment date after the 
 31.29  expiration date of this section.  No property tax may be levied 
 31.30  under this section for taxes payable in a calendar year after 
 31.31  the calendar year in which this section expires.  Expiration of 
 31.32  this section does not affect the obligation to pay or the 
 31.33  authority to collect taxes levied under this section before its 
 31.34  expiration. 
 31.35     [EFFECTIVE DATE.] This section is effective without local 
 31.36  approval the day following its final enactment. 
 32.2      The legislature determines that in the area in and around 
 32.3   the city of Alexandria, there are economic development issues 
 32.4   that can be more effectively dealt with by a single entity on a 
 32.5   coordinated basis rather than by multiple existing government 
 32.6   units.  The legislature, therefore, declares that for a 
 32.7   coordinated approach to economic development in the area, it is 
 32.8   necessary to establish for the area an economic development 
 32.9   authority with the responsibility of exercising the powers of an 
 32.10  economic development authority in order to advance the economic 
 32.11  vitality of the area. 
 32.12     Sec. 29.  [DEFINITIONS.] 
 32.13     Subdivision 1.  [DEFINITIONS.] For the purposes of sections 
 32.14  28 to 35, the terms defined in this section have the following 
 32.15  meanings. 
 32.17  AUTHORITY.] "Lakes area economic development authority" or 
 32.18  "authority" means the lakes area economic authority established 
 32.19  as provided in section 30. 
 32.20     Subd. 3.  [PERSON.] "Person" means an individual, 
 32.21  partnership, corporation, cooperative, or other organization or 
 32.22  entity, public or private. 
 32.23     Subd. 4.  [MEMBER.] "Member" means the city of Alexandria 
 32.24  or the townships of Alexandria, Carlos, or La Grand, or any 
 32.25  other municipality, the geographic area of which is included 
 32.26  within the jurisdiction of the authority. 
 32.27     Subd. 5.  [MUNICIPALITY.] "Municipality" means a statutory 
 32.28  or home rule charter city or town located in Douglas county. 
 32.30     Subdivision 1.  [ESTABLISHMENT.] A lakes area economic 
 32.31  development authority with jurisdiction over the geographic area 
 32.32  of its members is established as a public corporation and 
 32.33  political subdivision of the state with perpetual succession and 
 32.34  all the rights, powers, privileges, immunities, and duties that 
 32.35  may be validly granted to or imposed upon a municipal 
 32.36  corporation, as provided in sections 28 to 35. 
 33.1      Subd. 2.  [BOARD OF COMMISSIONERS.] The authority is 
 33.2   governed by a board of commissioners to be selected as follows:  
 33.3   the mayor of each member city, and the chair of the town board 
 33.4   of each member town shall appoint one commissioner, subject to 
 33.5   the approval of the respective city council or town board.  The 
 33.6   terms of the commissioner are as provided in subdivision 5. 
 33.8   APPOINTMENT BY DISTRICT JUDGE.] The initial appointment of 
 33.9   commissioners must be made no later than 60 days after sections 
 33.10  28 to 35 become effective.  Subsequent appointments must be made 
 33.11  within 60 days before the expiration of a term in the same 
 33.12  manner as the predecessor was selected.  A vacancy on the board 
 33.13  must be filled within 60 days after it occurs.  If a selection 
 33.14  is not made within the prescribed time, the chief judge of the 
 33.15  seventh judicial district of the Minnesota district court on 
 33.16  application by an interested person shall appoint an eligible 
 33.17  person to the board. 
 33.18     Subd. 4.  [VACANCIES.] If a vacancy occurs in the office of 
 33.19  commissioner, the vacancy must be filled for the unexpired term 
 33.20  in a like manner as provided for selection of the commissioner 
 33.21  who vacated the office.  The office must be considered vacant 
 33.22  under the conditions specified in Minnesota Statutes, section 
 33.23  351.02. 
 33.24     Subd. 5.  [TERMS OF OFFICE.] The terms of the initial 
 33.25  appointees to the board of commissioners are for two, three, 
 33.26  four, five, and six years and must be established by lot among 
 33.27  the initial five commissioners.  The mayor or town board chair 
 33.28  of any new member added under section 33 shall designate the 
 33.29  term, not to exceed six years, of the first commissioner 
 33.30  selected to represent the member.  Succeeding terms of all 
 33.31  commissioners are six years, except that each commissioner 
 33.32  serves until a successor has been duly selected and qualified. 
 33.33     Subd. 6.  [REMOVAL.] A commissioner may be removed by the 
 33.34  unanimous vote of the appointing governing body, with or without 
 33.35  cause. 
 33.36     Subd. 7.  [QUALIFICATIONS.] A commissioner may, but need 
 34.1   not, be a resident of the territory of the member appointing 
 34.2   that commissioner. 
 34.3      Subd. 8.  [COMPENSATION.] A commissioner must be paid a per 
 34.4   diem compensation for attending a regular or special meeting in 
 34.5   an amount determined by the board.  A commissioner must be 
 34.6   reimbursed for all reasonable expenses incurred in the 
 34.7   performance of the commissioner's duties as determined by the 
 34.8   board. 
 34.9      Sec. 31.  [POWERS; APPLICATION OF EDA LAW.] 
 34.10     Subdivision 1.  [USE OF EDA POWERS.] Except as otherwise 
 34.11  provided in sections 28 to 35, the authority may exercise any of 
 34.12  the powers of an economic development authority (EDA) provided 
 34.13  by Minnesota Statutes, sections 469.090 to 469.1082, and for 
 34.14  this purpose the term "city" means a member.  Minnesota 
 34.15  Statutes, sections 469.096 to 469.101, 469.103 to 469.106, and 
 34.16  469.108 to 469.1081 apply to the authority, except that the 
 34.17  authority's fiscal year is the calendar year.  
 34.18     Subd. 2.  [LAW THAT IS NOT APPLICABLE.] The provisions in: 
 34.19     (1) Minnesota Statutes, section 469.091, subdivision 1, 
 34.20  expressly relating to: 
 34.21     (i) the adoption of an enabling resolution; 
 34.22     (ii) Minnesota Statutes, section 469.092; or 
 34.23     (iii) housing and redevelopment authorities; and 
 34.24     (2) Minnesota Statutes, sections 469.093, 469.095, 469.102, 
 34.25  and 469.107; 
 34.26  do not apply to the authority. 
 34.28     A member shall, at the request of the authority, levy a tax 
 34.29  in any year for the benefit of the authority.  The tax is, for 
 34.30  each member, a pro rata portion of the total amount of tax 
 34.31  requested by the authority based on the taxable market value 
 34.32  within a member's jurisdiction, but in no event may the tax in 
 34.33  any year exceed 0.01813 percent of taxable market value.  For 
 34.34  purposes of this section, "taxable market value" has the meaning 
 34.35  as given in Minnesota Statutes, section 273.032. 
 34.36     The treasurer of each member city or town shall, within 15 
 35.1   days after receiving the property tax settlements from the 
 35.2   county treasurer, pay to the treasurer of the authority the 
 35.3   amount collected for this purpose.  The money must be used by 
 35.4   the authority for the purposes provided by sections 28 to 35. 
 35.6      Subdivision 1.  [ADDITIONS.] A municipality upon a 
 35.7   resolution adopted by a four-fifths vote of all of its governing 
 35.8   body may petition the authority to be included within the 
 35.9   jurisdiction of the authority and, if approved by the authority, 
 35.10  the geographic area of the municipality must be included within 
 35.11  the jurisdiction of the authority and subject to the 
 35.12  jurisdiction of the authority under sections 28 to 35. 
 35.13     Subd. 2.  [WITHDRAWALS.] A municipality may withdraw from 
 35.14  the authority by resolution of its governing body.  The 
 35.15  municipality must notify the board of commissioners of the 
 35.16  authority of the withdrawal by providing a copy of the 
 35.17  resolution at least two years in advance of the proposed 
 35.18  withdrawal.  Unless the authority and the withdrawing member 
 35.19  agree otherwise by action of their governing bodies, the taxable 
 35.20  property of the withdrawing member is subject to the property 
 35.21  tax levy under section 32 for two taxes payable years following 
 35.22  the notification of the withdrawal and the withdrawing member 
 35.23  retains any rights, obligations, and liabilities obtained or 
 35.24  incurred during its participation. 
 35.26     The authority may enter into contracts with one or more 
 35.27  nonprofit corporations to make, from funds of and under 
 35.28  guidelines set by the authority, loans or grants for projects 
 35.29  the authority may undertake under sections 28 to 35.  Minnesota 
 35.30  Statutes, section 465.719, does not apply so long as the 
 35.31  nonprofit corporation is not described in Minnesota Statutes, 
 35.32  section 465.719, subdivision 1, paragraph (b)(i) or (b)(ii). 
 35.33     Sec. 35.  [RELATION TO EXISTING LAWS.] 
 35.34     Sections 28 to 35 must be given full effect notwithstanding 
 35.35  any law or charter that is inconsistent with them. 
 35.36     Sec. 36.  [ST. PAUL LIBRARY AGENCY.] 
 36.1      (a) Notwithstanding any law or charter to the contrary, the 
 36.2   city council of the city of St. Paul may, by ordinance, 
 36.3   establish an independent library agency, a public body corporate 
 36.4   and politic, which is a governmental subdivision of the state of 
 36.5   Minnesota.  The library agency is responsible for all libraries 
 36.6   and library operations within the city of St. Paul.  The actions 
 36.7   of the city council as library board are subject to mayoral veto 
 36.8   and override of that veto in the same manner as other actions of 
 36.9   the city council. 
 36.10     (b) All employees of the library agency are employees of 
 36.11  the city of St. Paul. 
 36.12     (c) The city may transfer any real or personal property 
 36.13  used or to be used for library purposes to the library agency. 
 36.14     (d) The library board shall designate among its members a 
 36.15  chair, secretary, and treasurer, and may adopt bylaws. 
 36.16     (e) The director of the library agency shall be appointed 
 36.17  by the mayor. 
 36.18     [EFFECTIVE DATE.] This section is effective the day after 
 36.19  the governing body of St. Paul and its chief clerical officer 
 36.20  timely complete their compliance with Minnesota Statutes, 
 36.21  section 645.021, subdivisions 2 and 3. 
 36.23  MATTERS.] 
 36.24     Subdivision 1.  [BUDGET TO CITY.] Annually, at a time fixed 
 36.25  by charter, resolution, or ordinance of the city, the library 
 36.26  board shall send its budget to the city council.  The budget 
 36.27  must include a detailed written estimate of the amount of money 
 36.28  that the library board expects to need from the city to operate 
 36.29  the library agency during the next fiscal year in excess of any 
 36.30  expected receipts from other sources. 
 36.31     Subd. 2.  [FISCAL YEAR.] The fiscal year of the library 
 36.32  agency must be the same as the fiscal year of the city. 
 36.33     Subd. 3.  [CITY LEVY.] The city shall, at the request of 
 36.34  the library board, levy a tax in any year for the benefit of the 
 36.35  library agency.  The amount collected pursuant to the levy must 
 36.36  be held by the city treasurer exclusively for operations of the 
 37.1   library agency. 
 37.2      [EFFECTIVE DATE.] This section is effective the day after 
 37.3   the governing body of St. Paul and its chief clerical officer 
 37.4   timely complete their compliance with Minnesota Statutes, 
 37.5   section 645.021, subdivisions 2 and 3. 
 37.7   BONDS.] 
 37.8      Subdivision 1.  [POWER; PROCEDURE.] The library agency may 
 37.9   issue bonds in the principal amount authorized by the city 
 37.10  council.  The bonds may be issued in anticipation of income from 
 37.11  any source.  The bonds may be issued: 
 37.12     (1) to secure funds needed by the library agency to pay for 
 37.13  acquired real or personal property; or 
 37.14     (2) for capital improvements to property owned or used by 
 37.15  the library. 
 37.16     The bonds must be in the amount and form and bear interest 
 37.17  at the rate set by the city council.  Except as otherwise 
 37.18  provided in this section, the issuance of the bonds is governed 
 37.19  by Minnesota Statutes, chapter 475.  The library agency when 
 37.20  issuing the bonds is a municipality under Minnesota Statutes, 
 37.21  chapter 475.  Notwithstanding any city charter provision or any 
 37.22  general or special law to the contrary, the bonds may be issued 
 37.23  and sold without submission of the question to the electors of 
 37.24  the city, provided that the ordinance of the city council 
 37.25  authorizing issuance of the bonds by the library agency is 
 37.26  subject to provisions in the city charter pertaining to the 
 37.27  procedure for referendum on ordinances enacted by the city 
 37.28  council. 
 37.29     Subd. 2.  [OUTSIDE DEBT LIMIT.] Bonds issued by the library 
 37.30  agency must not be included in the net debt of the city of St. 
 37.31  Paul.  Money received under this section must not be included in 
 37.32  a per capita limit on taxing or spending in the city charter.  
 37.33  The library agency is also exempt from the limit. 
 37.34     Subd. 3.  [PLEDGE.] The bonds must be secured by the pledge 
 37.35  of the full faith, credit, and resources of the city of St. 
 37.36  Paul.  The city council must first decide whether the issuance 
 38.1   of the bonds by the library agency is proper in each case and, 
 38.2   if so, the amount of bonds to issue.  The city council shall 
 38.3   give specific consent in an ordinance to the pledge of the 
 38.4   city's full faith, credit, and resources.  The city shall pay 
 38.5   the principal amount of the bonds and the interest on them from 
 38.6   taxes levied under this section to make the payment or from 
 38.7   library board income from any source. 
 38.8      [EFFECTIVE DATE.] This section is effective the day after 
 38.9   the governing body of St. Paul and its chief clerical officer 
 38.10  timely complete their compliance with Minnesota Statutes, 
 38.11  section 645.021, subdivisions 2 and 3. 
 38.13     Subdivision 1.  [AUTHORITY; PURPOSES.] Notwithstanding the 
 38.14  provisions of Minnesota Statutes, section 282.08, clause (4), 
 38.15  the county board of St. Louis county, out of the proceeds from 
 38.16  the sale or rental of any parcel of forfeited land, or from the 
 38.17  sale of any products from that land after making the payments 
 38.18  directed by Minnesota Statutes, section 282.08, clauses (1), 
 38.19  (2), and (3), may annually by resolution apportion the balance 
 38.20  including undistributed receipts remaining in the fund on the 
 38.21  effective date of this section as provided in subdivisions 2 to 
 38.22  5. 
 38.23     Subd. 2.  [TIMBER DEVELOPMENT; MEMORIAL FORESTS.] No more 
 38.24  than 30 percent of the balance is to be used for timber 
 38.25  development on tax-forfeited land and dedicated memorial forests 
 38.26  to be expended under the supervision of the county board on 
 38.27  projects approved by the commissioner of natural resources. 
 38.28     Subd. 3.  [OTHER PURPOSES.] No more than 20 percent of the 
 38.29  balance is to be used for the following purposes: 
 38.30     (1) acquisition and maintenance of county parks or 
 38.31  recreational areas as defined in Minnesota Statutes, sections 
 38.32  398.31 to 398.36; 
 38.33     (2) land use planning programs being carried on in the 
 38.34  county including the enforcement of any controls developed in 
 38.35  said program; and 
 38.36     (3) no more than $4 per capita of the county's population 
 39.1   on the promotion of tourist, agricultural, and economic 
 39.2   development. 
 39.3      Subd. 4.  [USE FOR STATE OR FEDERAL PROGRAMS.] Any funds 
 39.4   set aside by the county board pursuant to subdivisions 2 and 3 
 39.5   may be used by the county board as the county's share in any 
 39.6   state or federal aid program relating to the purposes stated in 
 39.7   subdivisions 2 and 3. 
 39.8      Subd. 5.  [APPORTIONMENT.] Any balance must be apportioned 
 39.9   as follows:  county, 40 percent; town or city, 20 percent; and 
 39.10  school district, 40 percent.  But in unorganized territories, 
 39.11  the portion that should have accrued to the township must be 
 39.12  administered by the county board of commissioners. 
 39.13     [EFFECTIVE DATE; LOCAL APPROVAL.] This section is effective 
 39.14  the day after the governing body of St. Louis county and its 
 39.15  chief clerical officer timely complete their compliance with 
 39.16  Minnesota Statutes, section 645.021, subdivisions 2 and 3. 
 39.17     Sec. 40.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
 39.18     Sections 28 to 35 are only effective as to all affected 
 39.19  governing bodies on the day after the last of the governing 
 39.20  bodies of the city of Alexandria and the towns of Alexandria, 
 39.21  Carlos, and La Grand in Douglas county and the chief clerical 
 39.22  officer of each of them timely complete their compliance with 
 39.23  Minnesota Statutes, section 645.021, subdivisions 2 and 3. 
 39.24     The rest of this act, unless otherwise specifically stated, 
 39.25  is effective the day following its final enactment.