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SF 896

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:17am

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

Current Version - as introduced

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A bill for an act
relating to energy; authorizing two or more existing municipal power agencies
to form a new municipal power agency; amending Minnesota Statutes 2008,
sections 453.52, subdivisions 2, 7, 8; 453.53, subdivisions 1, 2, 3, 4, 8, 9; 453.55,
subdivision 13.

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

Section 1.

Minnesota Statutes 2008, section 453.52, subdivision 2, is amended to read:


Subd. 2.

Agency agreement.

"Agency agreement" means the written agreement
between or among two or more cities new text beginor existing municipal power agencies new text endestablishing a
municipal power agency.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2008, section 453.52, subdivision 7, is amended to read:


Subd. 7.

Governing body.

new text begin(a) new text end"Governing body," with respect to a city, means the
city council or, if another board, commission, or body is empowered by law or its charter
or by resolution of the city council to establish and regulate rates and charges for the
distribution of electric energy within the city, such board, commission, or body shall
be deemed to be the "governing body"; provided, however, that when the levy of a tax
or the incurring of an obligation payable from taxes or any other action of such board,
commission, or body requires the concurrence, approval, or independent action of the
city council or another body under the city's charter or any other law, such action shall
not be exercised under sections 453.51 to 453.62 until such concurrence or approval is
received or such independent action is taken; and provided further, that the concurrence
of the city council or other elected body charged with the general management of a city
shall be required, prior to the adoption by the city of any resolution approving an agency
agreement or any amendment thereto.

new text begin (b) With respect to an existing municipal power agency, "governing body" means
the agency's board of directors.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2008, section 453.52, subdivision 8, is amended to read:


Subd. 8.

Municipal power agency.

"Municipal power agency" means a separate
political subdivision and municipal corporation created by agreement between or among
two or more citiesnew text begin or existing municipal power agenciesnew text end pursuant to section 453.53
to exercise any of the powers of acquisition, construction, reconstruction, operation,
repair, extension, or improvement of electric generation or transmission facilities or the
acquisition of any interest therein or any right to part or all of the capacity thereof.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2008, section 453.53, subdivision 1, is amended to read:


Subdivision 1.

Two or more citiesdeleted text begin,deleted text endnew text begin or existing municipal power agencies;new text end
resolution.

(a) Any two or more citiesnew text begin or existing municipal power agenciesnew text end may form
a municipal power agency by the execution of an agency agreement authorized by a
resolution of the governing body of each citynew text begin or municipal power agencynew text end.

(b) The agency agreement shall state:

(1) that the municipal power agency is created and incorporated under the provisions
of sections 453.51 to 453.62 as a municipal corporation and a political subdivision of the
state, to exercise thereunder a part of the sovereign powers of the state;

(2) the name of the agency, which shall include the words "municipal power agency";

(3) the names of the citiesnew text begin or municipal power agenciesnew text end which have approved the
agency agreement and are the initial members of the municipal power agency;

(4) the names and addresses of the persons initially appointed by the resolutions
approving the agreement to act as the representatives of the deleted text begincitiesdeleted text endnew text begin membersnew text end, respectively,
in the exercise of their powers as members;

(5) limitations, if any, upon the terms of representatives of the respective deleted text beginmember
cities
deleted text endnew text begin membersnew text end, provided that such representatives shall always be selected and vacancies
in their offices declared and filled by resolutions of the governing bodies of the respective
deleted text begin citiesdeleted text endnew text begin membersnew text end;

(6) the names of the initial board of directors of the municipal power agency, who
shall be not less than five persons who are representatives of the respective deleted text beginmember citiesdeleted text endnew text begin
members
new text end, selected by the vote of a majority of such representatives; or the agreement may
provide that the representatives of the deleted text beginmember citiesdeleted text endnew text begin membersnew text end from time to time shall
be and constitute the board of directors;

(7) the location by city, town, or other community in the state, of the registered office
of the municipal power agency;

(8) that the citiesnew text begin or municipal power agenciesnew text end which are members of the municipal
power agency are not liable for its obligations; and

(9) any other provision for regulating the business of the municipal power agency or
the conduct of its affairs which may be agreed by the deleted text beginmember citiesdeleted text endnew text begin membersnew text end, consistent
with sections 453.51 to 453.62.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2008, section 453.53, subdivision 2, is amended to read:


Subd. 2.

Filing agreement, resolution; incorporation certificate.

The agency
agreement and a certified copy of the resolution of the governing body of each deleted text begincitydeleted text endnew text begin
member
new text end shall be filed for record with the secretary of state. If the agency agreement
conforms to the requirements of this section, the secretary of state shall record it and
issue and record a certificate of incorporation. The certificate shall state the name of
the municipal power agency and the fact and date of incorporation. Upon the issuance
of the certificate of incorporation, the existence of the municipal power agency as a
political subdivision of the state and a municipal corporation shall begin. The certificate of
incorporation shall be conclusive evidence of the fact of incorporation.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2008, section 453.53, subdivision 3, is amended to read:


Subd. 3.

First board.

The initial board of directors of the municipal power agency,
unless otherwise provided by the agency agreement, shall be elected prior to the filing of
the agreement by a majority vote of the persons acting as representatives of the deleted text beginmember
cities
deleted text endnew text begin membersnew text end, from among their members. After commencement of existence, the first
meeting of the board of directors shall be held at the call of the directors, after notice, for
the purpose of adopting the initial bylaws, electing officers, and for any other business
that comes before the meeting.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2008, section 453.53, subdivision 4, is amended to read:


Subd. 4.

Bylaws.

(a) The bylaws of the municipal power agency, and any
amendments thereto, shall be proposed by the board of directors and shall be adopted by
a majority vote of the representatives of the deleted text beginmember citiesdeleted text endnew text begin membersnew text end, unless the agency
agreement requires a greater vote, at a meeting held after notice.

(b) Subject to the provisions of the agency agreement, the bylaws shall state:

(1) the qualifications of deleted text beginmember citiesdeleted text endnew text begin membersnew text end, and limitations, if any, upon their
number;

(2) conditions of membership, if any;

(3) manner and time of calling regular meetings of representatives of deleted text beginmember citiesdeleted text endnew text begin
members
new text end;

(4) manner and conditions of termination of membership; and

(5) such other provisions for regulating the affairs of the municipal power agency as
the representatives of the deleted text beginmember citiesdeleted text endnew text begin membersnew text end shall determine to be necessary.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2008, section 453.53, subdivision 8, is amended to read:


Subd. 8.

deleted text beginCitydeleted text endnew text begin Membernew text end representatives.

Except as otherwise provided in the
agency agreement or the bylaws, the duly authorized representatives of each member deleted text begincitydeleted text end
shall act as, and vote on behalf of, such deleted text begincitydeleted text endnew text begin membernew text end. Except where the agency agreement
or bylaws provide otherwise, representatives of the deleted text beginmember citiesdeleted text endnew text begin membernew text end shall hold at
least one meeting each year for the election of directors and for the transaction of any
other business. Except where the agency agreement or bylaws prescribe otherwise, special
meetings of the representatives may be called for any purpose upon written request to the
president or secretary to call the meeting. Such officer shall give notice of the meeting to
be held between 10 and 60 days after receipt of such request. Unless the agency agreement
or bylaws provide for a different percentage, a quorum for a meeting of the representatives
of the deleted text beginmember citiesdeleted text endnew text begin membersnew text end is a majority of the total members and a quorum for
meetings of the board of directors is a majority of the membership of such board.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2008, section 453.53, subdivision 9, is amended to read:


Subd. 9.

Amendments to agency agreement.

The agency agreement may be
amended as proposed at any meeting of the representatives of the members for which
notice, stating the purpose, shall be given to each representative and, unless the agency
agreement or bylaws require otherwise, shall become effective when ratified by resolutions
of a majority of the governing bodies of the deleted text beginmember citiesdeleted text endnew text begin membersnew text end. Each amendment
and the resolutions approving it shall be filed for record with the secretary of state.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2008, section 453.55, subdivision 13, is amended to read:


Subd. 13.

Payable solely from pledged or available revenue.

The principal of and
interest upon any bonds or notes issued by a municipal power agency shall be payable
solely from the revenues or funds pledged or available for their payment as authorized in
sections 453.51 to 453.62. Each bond and note shall contain a statement that the principal
thereof or interest thereon is payable solely from revenues or funds of the municipal
power agency and that neither the state nor any political subdivision thereof, other than
the municipal power agency, nor any deleted text begincity which is adeleted text end member of the municipal power
agency is obligated to pay the principal or interest and that neither the faith and credit nor
the taxing power of the state or any political subdivision thereof or of any deleted text beginsuchdeleted text endnew text begin membernew text end
city is pledged to the payment of the principal of or the interest on the bonds or notes.
Nothing herein, however, precludes the use of tax or other revenue by a city for payment
of amounts due and performance of covenants under any contract of the city as provided
in section 453.58, subdivision 3.

new text begin EFFECTIVE DATE. new text end

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