SF 3149

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to environment; authorizing revenue bonds to be sold for closed landfill
cleanup; directing the Pollution Control Agency to provide cleanup of certain
closed landfill sites; appropriating money; amending Minnesota Statutes 2006,
section 116.155, subdivisions 2, 3; proposing coding for new law in Minnesota
Statutes, chapter 116.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 116.155, subdivision 2, is amended to read:

Subd. 2.

Appropriation.

(a) Money in the general portion of the remediation fund
is appropriated to the agency and the commissioners of agriculture and natural resources
for the following purposes:

(1) to take actions related to releases of hazardous substances, or pollutants or
contaminants as provided in section 115B.20;

(2) to take actions related to releases of hazardous substances, or pollutants or
contaminants, at and from qualified landfill facilities as provided in section 115B.42,
subdivision 2;

(3) to provide technical and other assistance under sections 115B.17, subdivision
14, 115B.175 to 115B.179, and 115C.03, subdivision 9;

(4) for corrective actions to address incidents involving agricultural chemicals,
including related administrative, enforcement, and cost recovery actions pursuant to
chapter 18D; deleted text begin and
deleted text end

(5) new text begin to make debt service payments on revenue bonds issued under section 116.156;
and
new text end

new text begin (6) new text end together with any amount approved for transfer to the agency from the petroleum
tank fund by the commissioner of finance, to take actions related to releases of petroleum
as provided under section 115C.08.

(b) The commissioner of finance shall allocate the amounts available in any
biennium to the agency, and the commissioners of agriculture and natural resources for the
purposes provided in this subdivision based upon work plans submitted by the agency and
the commissioners of agriculture and natural resources, and may adjust those allocations
upon submittal of revised work plans. Copies of the work plans shall be submitted
to the chairs of the senate and house committees having jurisdiction over environment
and environment finance.

new text begin (c) Priority for appropriations from the general portion of the remediation fund shall
be given to debt service payments under paragraph (a), clause (5).
new text end

Sec. 2.

Minnesota Statutes 2006, section 116.155, subdivision 3, is amended to read:

Subd. 3.

Revenues.

The following revenues shall be deposited in the general
portion of the remediation fund:

(1) response costs and natural resource damages related to releases of hazardous
substances, or pollutants or contaminants, recovered under sections 115B.17, subdivisions
6 and 7, 115B.443, 115B.444, or any other law;

(2) money paid to the agency or the Agriculture Department by voluntary parties
who have received technical or other assistance under sections 115B.17, subdivision 14,
115B.175 to 115B.179, and 115C.03, subdivision 9;

(3) money received in the form of gifts, grants, reimbursement, or appropriation from
any source for any of the purposes provided in subdivision 2, except federal grants; deleted text begin and
deleted text end

(4) new text begin money received from revenue bonds sold under section 116.156 and placed
in a special bond proceeds account; and
new text end

new text begin (5) new text end interest accrued on the fund.

Sec. 3.

new text begin [116.156] CLOSED LANDFILL CLEANUP REVENUE BONDS.
new text end

new text begin Subdivision 1. new text end

new text begin Bonding authority. new text end

new text begin (a) The commissioner of finance, if requested
by the commissioner of the Pollution Control Agency, shall sell and issue state revenue
bonds for the following purposes:
new text end

new text begin (1) to take actions related to hazardous substances, pollutants, or contaminants at
and from qualified landfill facilities as provided in section 115B.42, subdivision 2;
new text end

new text begin (2) to pay the costs of issuance, debt service, and bond insurance or other credit
enhancements and to fund reserves; and
new text end

new text begin (3) to refund bonds issued under this section.
new text end

new text begin (b) The amount of bonds that may be issued for the purposes of paragraph (a),
clause (1), may not exceed $25,000,000. The amount of bonds that may be issued for the
purposes of paragraph (a), clauses (2) and (3), is not limited.
new text end

new text begin Subd. 2. new text end

new text begin Procedure. new text end

new text begin The commissioner of finance may sell and issue the bonds
on the terms and conditions the commissioner of finance determines to be in the best
interests of the state. The bonds may be sold at public or private sale. The commissioner
of finance may enter any agreements or pledges the commissioner of finance determines
necessary or useful to sell the bonds that are not inconsistent with this section. Sections
16A.672 to 16A.675 apply to the bonds. The proceeds of the bonds issued under this
section must be credited to a special bond proceeds account in the remediation fund and
are appropriated to the commissioner of the Pollution Control Agency for the purposes
specified in subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Revenue sources. new text end

new text begin The debt service on the bonds is payable only from the
following sources:
new text end

new text begin (1) the remediation fund; and
new text end

new text begin (2) other revenues pledged to the payment of the bonds.
new text end

new text begin Subd. 4. new text end

new text begin Refunding bonds. new text end

new text begin The commissioner of finance may issue bonds to refund
outstanding bonds issued under subdivision 1, including the payment of any redemption
premiums on the bonds and any interest accrued or to accrue to the first redemption date
after delivery of the refunding bonds. The proceeds of the refunding bonds may, in the
discretion of the commissioner of finance, be applied to the purchases or payment at
maturity of the bonds to be refunded, or the redemption of the outstanding bonds on the
first redemption date after delivery of the refunding bonds and may, until so used, be
placed in escrow to be applied to the purchase, retirement, or redemption. Refunding
bonds issued under this subdivision must be issued and secured in the manner provided
by the commissioner of finance.
new text end

new text begin Subd. 5. new text end

new text begin Not a general or moral obligation. new text end

new text begin Bonds issued under this section are
not public debt, and the full faith, credit, and taxing powers of the state are not pledged
for their payment. The bonds may not be paid, directly in whole or in part from a tax of
statewide application on any class of property, income, transaction, or privilege. Payment
of the bonds is limited to the revenues explicitly authorized to be pledged under this
section. The state neither makes nor has a moral obligation to pay the bonds if the pledged
revenues and other legal security for them is insufficient.
new text end

new text begin Subd. 6. new text end

new text begin Trustee. new text end

new text begin The commissioner of finance may contract with and appoint a
trustee for bondholders. The trustee has the powers and authority vested in it by the
commissioner of finance under the bond and trust indentures.
new text end

new text begin Subd. 7. new text end

new text begin Pledges. new text end

new text begin Any pledge made by the commissioner of finance is valid and
binding from the time the pledge is made. The money or property pledged and later
received by the commissioner of finance is immediately subject to the lien of the pledge
without any physical delivery of the property or money or further act, and the lien of
any pledge is valid and binding as against all parties having claims of any kind in tort,
contract, or otherwise against the commissioner of finance, whether or not those parties
have notice of the lien or pledge. Neither the order nor any other instrument by which a
pledge is created need be recorded.
new text end

new text begin Subd. 8. new text end

new text begin Bonds; purchase and cancellation. new text end

new text begin The commissioner of finance, subject
to agreements with bondholders that may then exist, may, out of any money available for
the purpose, purchase bonds of the commissioner of finance at a price not exceeding
(1) if the bonds are then redeemable, the redemption price then applicable plus accrued
interest to the next interest payment date thereon, or (2) if the bonds are not redeemable,
the redemption price applicable on the first date after the purchase upon which the bonds
become subject to redemption plus accrued interest to that date.
new text end

new text begin Subd. 9. new text end

new text begin State pledge against impairment of contracts. new text end

new text begin The state pledges and
agrees with the holders of any bonds that the state will not limit or alter the rights vested
in the commissioner of finance to fulfill the terms of any agreements made with the
bondholders, or in any way impair the rights and remedies of the holders until the bonds,
together with interest on them, with interest on any unpaid installments of interest, and all
costs and expenses in connection with any action or proceeding by or on behalf of the
bondholders, are fully met and discharged. The commissioner of finance may include this
pledge and agreement of the state in any agreement with the holders of bonds issued
under this section.
new text end

Sec. 4. new text begin USE OF REVENUE BONDS FOR CLEANUP AT CERTAIN CLOSED
LANDFILL SITES; REPORT REQUIRED.
new text end

new text begin (a) The commissioner of the Pollution Control Agency shall recommend to the
commissioner of finance the sale of bonds under Minnesota Statutes, section 116.156,
to take action at qualified closed landfill facilities in Mille Lacs, Washington County,
the Western Lake Superior Sanitary District, and Albert Lea. The commissioner of the
Pollution Control Agency may make additional requests for revenue bonds at other sites
under Minnesota Statutes, section 116.156.
new text end

new text begin (b) By January 15, 2009, the commissioner of the Pollution Control Agency shall
report to the house and senate Finance Committees and Divisions with jurisdiction over
the environment on funding needs of the remediation fund to provide timely cleanup
of closed landfills in the state. The report shall make recommendations for additional
funding sources to address those needs.
new text end