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Minnesota Legislature

Office of the Revisor of Statutes

SF 3318

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 05/05/2010 09:12am

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

Current Version - 1st Engrossment

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A bill for an act
relating to state government; imposing a threshold value before notification
of certain legislators is required for disposal of certain state-owned buildings;
changing provisions in the energy improvement financing program; clarifying
responsibility for administration of the state's responsibilities as a member
of the workers' compensation reinsurance association; amending Minnesota
Statutes 2008, sections 16B.24, subdivision 3; 16B.322, subdivisions 4, 5;
79.34, subdivision 1; Minnesota Statutes 2009 Supplement, section 16B.322,
subdivisions 4a, 4b, 4c.

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

Section 1.

Minnesota Statutes 2008, section 16B.24, subdivision 3, is amended to read:


Subd. 3.

Disposal of old buildings.

new text begin (a) Upon request from the head of an agency
with control of a state-owned building with an estimated market value of less than
$50,000, as determined by the commissioner, the commissioner may sell, demolish, or
otherwise dispose of the building if the commissioner determines that the building is no
longer used or is a fire or safety hazard.
new text end

deleted text begin The commissioner,deleted text endnew text begin (b)new text end Upon request of the head of an agency deleted text beginwhich hasdeleted text endnew text begin withnew text end control
of a state-owned building deleted text beginwhich is no longer used or which is a fire or safety hazard, shall,deleted text endnew text begin
with an estimated market value of $50,000 or more, as determined by the commissioner,
the commissioner may sell, demolish, or otherwise dispose of the building
new text end after
new text begin determining that the building is no longer used or is a fire or safety hazard and new text endobtaining
approval of the chairs of the senate Finance Committee and house of representatives Ways
and Means Committeedeleted text begin, sell, wreck, or otherwise dispose of the buildingdeleted text end.

new text begin (c) new text endIn the event a sale is made new text beginunder this subdivision, new text endthe proceeds shall be deposited
in the deleted text beginproperdeleted text end account deleted text beginor in the general funddeleted text endnew text begin provided by law. If there is no requirement in
law specifying how proceeds must be deposited other than section 16A.72, the proceeds
must be deposited in the account from which the appropriation to acquire or construct the
building was made. If the account from which the appropriation was made cannot be
identified or has been terminated, the proceeds shall be deposited in the general fund
new text end.

Sec. 2.

Minnesota Statutes 2008, section 16B.322, subdivision 4, is amended to read:


Subd. 4.

Financing agreement.

The commissioner shall solicit proposals from
private financial institutionsnew text begin on an individual project or line of credit basisnew text end and may enter
into a financing agreement with one or more financial institutions. new text beginIf a financing agreement
is for an individual project,
new text endthe term of the financing agreement shall not exceed 15 years
from the date of final completion of the energy improvement projectdeleted text begin. Thedeleted text endnew text begin and anew text end financing
agreement is assignable to the state agency operating or managing the state building or
facility improved by the energy improvement project.new text begin The term of a financing agreement
on an individual project basis must be less than the average expected useful life of the
energy saving measures implemented under the project.
new text end The proceeds from the financing
agreement are appropriated to the commissioner and may be used for the purposes of
this section and are available until spent.

Sec. 3.

Minnesota Statutes 2009 Supplement, section 16B.322, subdivision 4a, is
amended to read:


Subd. 4a.

Financing agreement.

The commissioner of administration may, in
connection with a financing agreement, covenant deleted text beginin a master lease-purchase agreementdeleted text end
that the state will abide by the terms and provisions that are customary in net lease or
lease-purchase transactions including, but not limited to, covenants providing that the state:

(1) will maintain insurance as required under the terms of the lease agreement;

(2) is responsible to the lessor for any public liability or property damage claims or
costs related to the selection, use, or maintenance of the leased equipment, to the extent of
insurance or self-insurance maintained by the lessee, and for costs and expenses incurred
by the lessor as a result of any default by the lessee;

(3) authorizes the lessor to exercise the rights of a secured party with respect to the
equipment subject to the lease in the event of default by the lessee and, in addition, for
the present recovery of lease rentals due during the current term of the lease as liquidated
damages.

Sec. 4.

Minnesota Statutes 2009 Supplement, section 16B.322, subdivision 4b, is
amended to read:


Subd. 4b.

Master lease-purchase agreements not debt.

A deleted text begintax-exempt
lease-purchase agreement related to a
deleted text end financing agreementnew text begin under this sectionnew text end does not
constitute or create a general or moral obligation or indebtedness of the state in excess
of the money from time to time appropriated or otherwise available for the payment of
rent coming due under the lease, and the state has no continuing obligation to appropriate
money for the payment of rent or other obligations under the deleted text beginleasedeleted text endnew text begin agreementnew text end. Rent due
under a deleted text beginmaster lease-purchasedeleted text endnew text begin financingnew text end agreementnew text begin under this sectionnew text end during a current
deleted text begin leasedeleted text end term for which money has been appropriated is a current expense of the state.

Sec. 5.

Minnesota Statutes 2009 Supplement, section 16B.322, subdivision 4c, is
amended to read:


Subd. 4c.

Budget offset.

new text beginThe commissioner shall require a state agency that uses
the state energy improvement program to certify that the agency will budget, allocate, and
commit agency funds sufficient to make rent payments under a financing agreement until
all rent obligations are paid in full. In the event a participating agency fails to make a
rent payment,
new text endthe commissioner of management and budget shall reduce the operating
deleted text begin budgetsdeleted text endnew text begin budgetnew text end ofnew text begin thenew text end state deleted text beginagencies that use the master lease-purchase program under a
financial agreement
deleted text endnew text begin agencynew text end. The amount of the reduction is the amount sufficient to
make the actual deleted text beginmaster leasedeleted text end payments.

Sec. 6.

Minnesota Statutes 2008, section 16B.322, subdivision 5, is amended to read:


Subd. 5.

Qualifying energy improvement projects.

The commissioner may
approve an energy improvement project deleted text beginand enter intodeleted text endnew text begin fornew text end a financing agreement if the
commissioner determines that:

(1) the project andnew text begin projectnew text end financing agreement have been approved by the governing
body or head of the state agency that operates or manages the state building or facility to
be improved;

(2) the project is technically and economically feasible;

(3) the state agency that operates or manages the state building or facility has made
adequate provision for the operation and maintenance of the project;

(4) if an energy efficiency improvement, the project is calculated to result in a
positive cash flow in each year the financing agreement is in effect;

(5) the project proposer has fully explored the use of conservation investment plan
opportunities under section 216B.241 with the utilities providing gas and electric service
to the energy improvement project;

(6) if a renewable energy improvement, the project is calculated to reduce use of
fossil-fuel energy; and

(7) if a geothermal energy improvement, the project is calculated to produce savings
in terms of nongeothermal energy and costs.

For the purpose of clause (6), "renewable energy" is energy produced by an eligible energy
technology as defined in section 216B.1691, subdivision 1, paragraph (a), clause (1).

Sec. 7.

Minnesota Statutes 2008, section 79.34, subdivision 1, is amended to read:


Subdivision 1.

Conditions requiring membership.

The nonprofit association
known as the Workers' Compensation Reinsurance Association may be incorporated under
chapter 317A with all the powers of a corporation formed under that chapter, except that
if the provisions of that chapter are inconsistent with sections 79.34 to 79.40, sections
79.34 to 79.40 govern. Each insurer as defined by section 79.01, subdivision 2, shall, as
a condition of its authority to transact workers' compensation insurance in this state, be
a member of the reinsurance association and is bound by the plan of operation of the
reinsurance association; provided, that all affiliated insurers within a holding company
system as defined in chapter 60D are considered a single entity for purposes of the exercise
of all rights and duties of membership in the reinsurance association. Each self-insurer
approved under section 176.181 and each political subdivision that self-insures shall, as a
condition of its authority to self-insure workers' compensation liability in this state, be a
member of the reinsurance association and is bound by its plan of operation; provided that:

(1) all affiliated companies within a holding company system, as determined by
the commissioner of labor and industry in a manner consistent with the standards and
definitions in chapter 60D, are considered a single entity for purposes of the exercise of all
rights and duties of membership in the reinsurance association; and

(2) all group self-insurers granted authority to self-insure pursuant to section
176.181 are considered single entities for purposes of the exercise of all the rights and
duties of membership in the reinsurance association. As a condition of its authority to
self-insure workers' compensation liability, and for losses incurred after December 31,
1983, the state is a member of the reinsurance association and is bound by its plan of
operation. The commissioner of deleted text beginmanagement and budgetdeleted text end new text beginadministration new text endrepresents
the state in the exercise of all the rights and duties of membership in the reinsurance
association. The amounts necessary to pay the state's premiums required for coverage by
the Workers' Compensation Reinsurance Association are appropriated from the general
fund to the commissioner of deleted text beginmanagement and budgetdeleted text endnew text begin administrationnew text end. The University
of Minnesota shall pay its portion of workers' compensation reinsurance premiums
directly to the Workers' Compensation Reinsurance Association. For the purposes of
this section, "state" means the administrative branch of state government, the legislative
branch, the judicial branch, the University of Minnesota, and any other entity whose
workers' compensation liability is paid from the state revolving fund. The commissioner
of management and budget may calculate, prorate, and charge a department or agency
the portion of premiums paid to the reinsurance association for employees who are
paid wholly or in part by federal funds, dedicated funds, or special revenue funds. The
reinsurance association is not a state agency. Actions of the reinsurance association and its
board of directors and actions of the commissioner of labor and industry with respect to
the reinsurance association are not subject to chapters 13 and 15. All property owned by
the association is exempt from taxation. The reinsurance association is not obligated to
make any payments or pay any assessments to any funds or pools established pursuant to
this chapter or chapter 176 or any other law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end