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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1987 

                        CHAPTER 289-H.F.No. 1326 
           An act relating to energy; authorizing loans to 
          municipalities for energy conservation investments and 
          authorizing repayment of those loans; authorizing 
          issuance of bonds; appropriating money; amending 
          Minnesota Statutes 1986, sections 116J.37; 275.50, 
          subdivision 5; 471.65; and 475.51, subdivision 4.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 116J.37, is 
amended to read:  
    116J.37 [ENERGY CONSERVATION INVESTMENT LOANS.] 
    Subdivision 1.  [DEFINITIONS.] In this section:  
    (a) "Commissioner" means the commissioner of energy and 
economic development.  Upon passage of legislation creating a 
body known as the Minnesota energy and economic development 
authority, the duties assigned to the commissioner in this 
section are delegated to the authority.  
    (b) "Maxi-audit" has the meaning given in section 116J.06, 
subdivision 12 means a detailed engineering analysis of 
energy-saving improvements to existing buildings or stationary 
energy-using systems, including (1) modifications to building 
structures; (2) heating, ventilating, and air conditioning 
systems; (3) operation practices; (4) lighting; and (5) other 
factors that relate to energy use.  The primary purpose of the 
engineering analysis is to quantify the economic and engineering 
feasibility of energy-saving improvements that require capital 
expenditures or major operational modifications.  
    (c) "Energy conservation investments" mean all capital 
expenditures that are associated with conservation measures 
identified in a maxi-audit and that have a ten-year or less 
payback period.  Public school districts that received a federal 
institutional building grant in 1984 to convert a heating system 
to wood, and that apply for an energy conservation investment 
loan to match a federal grant for wood conversion, shall be 
allowed to calculate payback of conservation measures based on 
the costs of the traditional fuel in use prior to the wood 
conversion. 
    (d) "Municipality" means any county, statutory or home rule 
charter city, town, school district, or any combination of those 
units operating under an agreement to jointly undertake projects 
authorized in this section.  
    Subd. 2.  [ELIGIBILITY.] The commissioner shall approve 
loans to school districts municipalities for energy conservation 
investments.  A loan may be made to a school district 
municipality that has demonstrated that it has complied with all 
the appropriate provisions of this section and has made adequate 
provisions to assure proper and efficient operation of 
the school municipal facilities after improvements and 
modifications are completed.  
    Subd. 3.  [APPLICATION.] Application for a loan to be made 
pursuant to this section shall be made by a school district 
municipality to the commissioner on a form the commissioner 
prescribes by rule.  The commissioner shall review each 
application to determine:  
    (a) whether or not the district's municipality's proposal 
is complete;  
    (b) whether the project is eligible for a loan;  
    (c) the amount of the loan for which the project is 
eligible; and 
    (d) the means by which the district municipality proposes 
to finance the project including:  
    (1) a loan authorized by this section;  
    (2) a grant of money appropriated by state law;  
    (3) a grant to the district municipality by an agency of 
the federal government within the amount of money then 
appropriated to that agency; or 
    (4) the appropriation of other money of the district 
municipality to an account for the construction of the project.  
    Subd. 4.  [LOANS.] The commissioner shall approve loans 
to school districts municipalities on the following conditions:  
    (a) A district municipality must demonstrate that all audit 
activities for a given building or project have been completed, 
that the project is economically feasible, and that it has made 
adequate provisions to assure proper and efficient operation of 
the facility once the project is completed.  
    (b) A loan made pursuant to this section is repayable over 
a period of not more than ten years from the date the loan is 
made.  Interest shall accrue from the date the loan is made, but 
the first payment of interest or principal shall not be due 
until one year after the loan was made.  The principal shall be 
amortized in equal periodic payments over the remainder of the 
term of the loan.  The accrued interest on the balance of the 
loan principal shall be due with each payment.  Interest 
attributable to the first year of deferred payment shall be paid 
in the same manner as principal.  
     (c) Public schools shall receive funding priority whenever 
approvable loan applications exceed available funds. 
    Subd. 5.  [PAYMENT; OBLIGATION.] The commissioner shall not 
approve payment to a school district municipality pursuant to an 
approved loan until the commissioner has determined that 
financing of the project is assured by an irrevocable 
undertaking, by resolution of the school board governing body of 
the municipality, to annually levy or otherwise collect an 
amount of money sufficient to pay the principal and interest due 
on the loan as well as any of the commissioner of finance's 
administrative expenses according to the terms of the loan.  
    Subd. 6.  [RECEIPTS; APPROPRIATION.] The commissioner of 
finance shall deposit in the state treasury all principal and 
interest payments received in repayment of the loans authorized 
by this section.  These payments shall be credited to the state 
building fund and are appropriated to the commissioner of 
finance for the purposes of that account.  
    Subd. 7.  [RULES.] The commissioner shall adopt rules 
necessary to implement this section.  The commissioner shall 
adopt emergency rules pursuant to sections 14.29 to 14.36, 
meeting the requirements of this section.  The rules shall 
contain as a minimum:  
    (a) procedures for application by districts municipalities; 
    (b) criteria for reviewing loan applications; and 
    (c) procedures and guidelines for program monitoring, 
closeout, and evaluation.  
    Sec. 2.  Minnesota Statutes 1986, section 275.50, 
subdivision 5, is amended to read: 
    Subd. 5.  Notwithstanding any other law to the contrary for 
taxes levied in 1983 payable in 1984 and subsequent years, 
"special levies" means those portions of ad valorem taxes levied 
by governmental subdivisions to: 
     (a) satisfy judgments rendered against the governmental 
subdivision by a court of competent jurisdiction in any tort 
action, or to pay the costs of settlements out of court against 
the governmental subdivision in a tort action when substantiated 
by a stipulation for the dismissal of the action filed with the 
court of competent jurisdiction and signed by both the plaintiff 
and the legal representative of the governmental subdivision, 
but only to the extent of the increase in levy for such 
judgments and out of court settlements over levy year 1970, 
taxes payable in 1971; 
     (b) pay the costs of complying with any written lawful 
order initially issued prior to January 1, 1977 by the state of 
Minnesota, or the United States, or any agency or subdivision 
thereof, which is authorized by law, statute, special act or 
ordinance and is enforceable in a court of competent 
jurisdiction, or any stipulation agreement or permit for 
treatment works or disposal system for pollution abatement in 
lieu of a lawful order signed by the governmental subdivision 
and the state of Minnesota, or the United States, or any agency 
or subdivision thereof which is enforceable in a court of 
competent jurisdiction.  The commissioner of revenue shall in 
consultation with other state departments and agencies, develop 
a suggested form for use by the state of Minnesota, its agencies 
and subdivisions in issuing orders pursuant to this subdivision; 
        (c) pay the costs to a governmental subdivision for their 
minimum required share of any program otherwise authorized by 
law for which matching funds have been appropriated by the state 
of Minnesota or the United States, excluding the administrative 
costs of public assistance programs, to the extent of the 
increase in levy over the amount levied for the local share of 
the program for the taxes payable year 1971.  This clause shall 
apply only to those programs or projects for which matching 
funds have been designated by the state of Minnesota or the 
United States on or before September 1, of the previous year and 
only when the receipt of these matching funds is contingent upon 
the initiation or implementation of the project or program 
during the year in which the taxes are payable or those programs 
or projects approved by the commissioner; 
        (d) pay the costs not reimbursed by the state or federal 
government, of payments made to or on behalf of recipients of 
aid under any public assistance program authorized by law, and 
the costs of purchase or delivery of social services.  Except 
for the costs of general assistance as defined in section 
256D.02, subdivision 4, general assistance medical care under 
section 256D.03 and the costs of hospital care pursuant to 
section 261.21, the aggregate amounts levied pursuant to this 
clause are subject to a maximum increase of 18 percent over the 
amount levied for these purposes in the previous year; 
      (e) pay the costs of principal and interest on bonded 
indebtedness or to reimburse for the amount of liquor store 
revenues used to pay the principal and interest due in the year 
preceding the year for which the levy limit is calculated on 
municipal liquor store bonds; 
      (f) pay the costs of principal and interest on certificates 
of indebtedness, except tax anticipation or aid anticipation 
certificates of indebtedness, issued for any corporate purpose 
except current expenses or funding an insufficiency in receipts 
from taxes or other sources or funding extraordinary 
expenditures resulting from a public emergency; and to pay the 
cost for certificates of indebtedness issued pursuant to 
sections 298.28 and 298.282;  
      (g) fund the payments made to the Minnesota state armory 
building commission pursuant to section 193.145, subdivision 2, 
to retire the principal and interest on armory construction 
bonds; 
      (h) provide for the bonded indebtedness portion of payments 
made to another political subdivision of the state of Minnesota; 
      (i) pay the amounts required to compensate for a decrease 
in manufactured homes property tax receipts to the extent that 
the governmental subdivision's portion of the total levy in the 
current levy year, pursuant to section 274.19, subdivision 8, as 
amended, is less than the distribution of the manufactured homes 
tax to the governmental subdivision pursuant to Minnesota 
Statutes 1969, section 273.13, subdivision 3, in calendar year 
1971; 
      (j) pay the amounts required, in accordance with section 
275.075, to correct for a county auditor's error of omission but 
only to the extent that when added to the preceding year's levy 
it is not in excess of an applicable statutory, special law or 
charter limitation, or the limitation imposed on the 
governmental subdivision by sections 275.50 to 275.56 in the 
preceding levy year; 
      (k) pay amounts required to correct for an error of 
omission in the levy certified to the appropriate county auditor 
or auditors by the governing body of a city or town with 
statutory city powers in a levy year, but only to the extent 
that when added to the preceding year's levy it is not in excess 
of an applicable statutory, special law or charter limitation, 
or the limitation imposed on the governmental subdivision by 
sections 275.50 to 275.56 in the preceding levy year; 
      (l) pay the increased cost of municipal services as the 
result of an annexation or consolidation ordered by the 
Minnesota municipal board but only to the extent and for the 
levy years as provided by the board in its order pursuant to 
section 414.01, subdivision 15.  Special levies authorized by 
the board shall not exceed 50 percent of the levy limit base of 
the governmental subdivision and may not be in effect for more 
than three years after the board's order; 
      (m) pay the increased costs of municipal services provided 
to new private industrial and nonresidential commercial 
development, to the extent that the extension of such services 
are not paid for through bonded indebtedness or special 
assessments, and not to exceed the amount determined as 
follows.  The governmental subdivision may calculate the 
aggregate of: 
      (1) the increased expenditures necessary in preparation for 
the delivering of municipal services to new private industrial 
and nonresidential commercial development, but limited to one 
year's expenditures one time for each such development; 
      (2) the amount determined by dividing the overall levy 
limitation established pursuant to sections 275.50 to 275.56, 
and exclusive of special levies and special assessments, by the 
total taxable value of the governmental subdivision, and then 
multiplying this quotient times the total increase in assessed 
value of private industrial and nonresidential commercial 
development within the governmental subdivision.  For the 
purpose of this clause, the increase in the assessed value of 
private industrial and nonresidential commercial development is 
calculated as the increase in assessed value over the assessed 
value of the real estate parcels subject to such private 
development as most recently determined before the building 
permit was issued.  In the fourth levy year subsequent to the 
levy year in which the building permit was issued, the increase 
in assessed value of the real estate parcels subject to such 
private development shall no longer be included in determining 
the special levy. 
      The aggregate of the foregoing amounts, less any costs of 
extending municipal services to new private industrial and 
nonresidential commercial development which are paid by bonded 
indebtedness or special assessments, equals the maximum amount 
that may be levied as a "special levy" for the increased costs 
of municipal services provided to new private industrial and 
nonresidential commercial development.  In the levy year 
following the levy year in which the special levy made pursuant 
to this clause is discontinued, one-half of the amount of that 
special levy made in the preceding year shall be added to the 
permanent levy base of the governmental subdivision; 
      (n) recover a loss or refunds in tax receipts incurred in 
nonspecial levy funds resulting from abatements or court action 
in the previous year pursuant to section 275.48; 
      (o) pay amounts required by law to be paid to pay the 
interest on and to reduce the unfunded accrued liability of 
public pension funds in accordance with the actuarial standards 
and guidelines specified in sections 356.215 and 356.216 reduced 
by 106 percent of the amount levied for that purpose in 1976, 
payable in 1977.  For the purpose of this special levy, the 
estimated receipts expected from the state of Minnesota pursuant 
to sections 69.011 to 69.031 or any other state aid expressly 
intended for the support of public pension funds shall be 
considered as a deduction in determining the required levy for 
the normal costs of the public pension funds.  No amount of 
these aids shall be considered as a deduction in determining the 
governmental subdivision's required levy for the reduction of 
the unfunded accrued liability of public pension funds; 
      (p) the amounts allowed under section 174.27 to establish 
and administer a commuter van program; 
      (q) pay the costs of financial assistance to local 
governmental units and certain administrative, engineering, and 
legal expenses pursuant to Laws 1979, chapter 253, section 3; 
      (r) compensate for revenue lost as a result of abatements 
or court action pursuant to section 270.07, 270.17 or 278.01 due 
to a reassessment ordered by the commissioner of revenue 
pursuant to section 270.16;  
     (s) pay the total operating cost of a county jail as 
authorized in section 641.01.  If the county government utilizes 
this special levy, then any amount levied by the county 
government in the previous year for operating its county jail 
and included in its previous year's levy limitation computed 
pursuant to section 275.51 shall be deducted from the current 
levy limitation; 
     (t) pay the costs of implementing section 18.023, including 
sanitation and reforestation; 
    (u) pay the estimated cost for the following calendar year 
of the county's share of funding the Minnesota cooperative soil 
survey; and 
    (v) pay the costs of meeting the planning requirements of 
section 115A.46; the requirements of section 115A.917; the 
planning requirements of the metropolitan plan adopted under 
section 473.149 and county master plans adopted under section 
473.803; waste reduction and source separation programs and 
facilities; response actions that are financed in part by 
service charges under section 400.08 or 115A.15, subdivision 6; 
closure and postclosure care of a solid waste facility closed by 
order of the pollution control agency or by expiration of an 
agency permit before January 1, 1989; and current operating and 
maintenance costs of a publicly-owned solid waste processing 
facility financed with general obligation bonds issued after a 
referendum before March 25, 1986; 
     (w) pay the annual principal and interest due on a loan 
made under section 116J.37; and 
     (x) pay the annual principal and interest due on a loan 
from money received from litigation or settlement of alleged 
violations of federal petroleum pricing regulations. 
    Sec. 3.  Minnesota Statutes 1986, section 471.65, is 
amended to read: 
    471.65 [GRANT, ADVANCE, OR LOAN FROM FEDERAL OR STATE 
GOVERNMENT.] 
    Subdivision 1.  [ACCEPTANCE.] Notwithstanding inconsistent 
provisions of any other statute or home rule charter, any 
county, statutory or home rule charter city, town, school 
district or other political subdivision of the state, however 
organized, may accept from the government of the United States 
or the state of Minnesota grants, loans, or advances of money 
for:  
     (1) energy conservation investments made from funds 
received under section 116J.37, and from money received from 
litigation or settlement of alleged violations of federal 
petroleum pricing regulations; and 
     (2) the planning of public works projects, and may make 
agreements to repay any such loans or advances for planning 
purposes without submitting the proposal to a vote of the 
people.  Funds received by any political subdivision under this 
subdivision shall not be used for the planning of public housing 
projects, or housing authority projects.  
    Subd. 2.  [CHARTER LIMITATION ON EXPENDITURES NOT TO 
APPLY.] Expenditures of grants, advances or loans of money 
received by any city from the government of the United States or 
the state of Minnesota for the planning of public works projects 
under subdivision 1 by such municipality shall not be considered 
as part of the cost of government within the meaning of any 
statutory or charter limitation on expenditures.  
    Sec. 4.  Minnesota Statutes 1986, section 475.51, 
subdivision 4, is amended to read: 
    Subd. 4.  "Net debt" means the amount remaining after 
deducting from its gross debt the amount of current revenues 
which are applicable within the current fiscal year to the 
payment of any debt and the aggregate of the principal of the 
following: 
    (1) Obligations issued for improvements which are payable 
wholly or partly from the proceeds of special assessments levied 
upon property specially benefited thereby, including those which 
are general obligations of the municipality issuing them, if the 
municipality is entitled to reimbursement in whole or in part 
from the proceeds of the special assessments. 
    (2) Warrants or orders having no definite or fixed maturity.
    (3) Obligations payable wholly from the income from revenue 
producing conveniences. 
    (4) Obligations issued to create or maintain a permanent 
improvement revolving fund. 
    (5) Obligations issued for the acquisition, and betterment 
of public waterworks systems, and public lighting, heating or 
power systems, and of any combination thereof or for any other 
public convenience from which a revenue is or may be derived. 
    (6) Debt service loans and capital loans made to a school 
district under the provisions of sections 124.42 and 124.43. 
    (7) Amount of all money and the face value of all 
securities held as a debt service fund for the extinguishment of 
obligations other than those deductible under this subdivision. 
    (8) Obligations to repay loans made under section 116J.37.  
    (9) Obligations to repay loans made from money received 
from litigation or settlement of alleged violations of federal 
petroleum pricing regulations. 
    (10) All other obligations which under the provisions of 
law authorizing their issuance are not to be included in 
computing the net debt of the municipality. 
    Sec. 5.  Laws 1983, chapter 323, section 5, subdivision 1, 
is amended to read: 
    Subdivision 1.  The sum of $30,000,000 is appropriated from 
the state building fund to the commissioner of finance for the 
purpose of making loans to school districts municipalities for 
energy conservation investments pursuant to section 1.  Any 
expense incidental to the sale, printing, execution, and 
delivery of the bonds, including the costs of the commissioner 
of finance, shall be paid from the proceeds of the bond sales 
authorized in section 6 and the amounts necessary for these 
expenses are hereby appropriated.  To reduce the amount of taxes 
otherwise required to be levied, there is also appropriated from 
the general fund, on November 1 in each year, a sum of money 
sufficient in amount, when added to other funds appropriated for 
the bonds, to pay all bonds and interest on them due and to 
become due to and including July 1 in the second ensuing year. 
    Approved May 28, 1987