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Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1991 

                        CHAPTER 350-H.F.No. 1655 
           An act relating to taxation; authorizing the 
          department of finance to issue obligations to finance 
          construction of aircraft maintenance and repair 
          facilities; providing tax credits for job creation; 
          providing an exemption from sales tax for certain 
          equipment and materials; authorizing establishment of 
          tax increment financing districts in the cities of 
          Duluth and Hibbing and on property located at the 
          Minneapolis-St. Paul International Airport; 
          authorizing the pledge of city funds by the city of 
          Duluth to pay debt service on certain obligations; 
          authorizing the metropolitan airports commission to 
          issue obligations to finance construction of aircraft 
          maintenance facilities; authorizing the metropolitan 
          airports commission to operate outside the 
          metropolitan area; establishing an interagency task 
          force; appropriating money; amending Minnesota 
          Statutes 1990, sections 272.01, subdivision 2; 290.06, 
          by adding a subdivision; 360.013, subdivision 5; 
          360.032, subdivision 1; 360.038, subdivision 4; 
          473.608, subdivision 1; and 473.667, subdivision 8a, 
          and by adding subdivisions; proposing coding for new 
          law in Minnesota Statutes, chapters 297A; and 473; 
          proposing coding for new law as Minnesota Statutes, 
          chapter 116R. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1 

                    AIRCRAFT MAINTENANCE AND ENGINE 

                  REPAIR FACILITIES:  STATE FINANCING 
    Section 1.  [116R.01] [DEFINITIONS.] 
    Subdivision 1.  [APPLICATION.] The definitions in this 
section apply to sections 1 to 16. 
    Subd. 2.  [BONDS.] "Bonds" means the bonds authorized under 
section 2, subdivision 1, or bonds issued to refund these bonds, 
except for deficiency bonds.  
    Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
commissioner of finance. 
    Subd. 4.  [CORPORATE HEADQUARTERS.] "Corporate 
headquarters" means the principal office from which the business 
of the corporation is conducted and the principal office of the 
chief executive officer of the corporation. 
    Subd.  5.  [DEFICIENCY BONDS.] "Deficiency bonds" means the 
bonds authorized under section 13, subdivision 3, or bonds 
issued to refund these bonds.  
    Subd.  6.  [PROJECT.] "Project" means the facilities or any 
property described in section 5, subdivisions 5 or 6, as 
applicable. 
    Subd.  7.  [RELATED PERSON.] "Related person" means any 
guarantor of the obligations of the lessee under the lease of a 
project and any other person whose relation to the lessee or the 
guarantor is that of a related person as defined in section 147 
(a)(2) of the Internal Revenue Code of 1986, as amended through 
December 31, 1990, and whose financial condition the 
commissioner determines to be material for the purposes of 
carrying out the due diligence duties under section 2. 
    Subd.  8.  [STATE GUARANTEED BONDS.] "State guaranteed 
bonds" means all outstanding bonds secured as provided in 
section 2, subdivision 4, paragraph (a). 
    Subd. 9.  [CASH COLLATERAL.] "Cash collateral" means cash 
or securities issued or unconditionally guaranteed as to payment 
of principal and interest by the United States of America and 
maturing or callable at the option of the holder within two 
years. 
    Sec. 2.  [116R.02] [BOND ISSUE; SALE AUTHORIZATION.] 
    Subdivision 1.  [SALE AUTHORIZATION.] The commissioner of 
finance, upon the request of the governor, may issue and sell 
revenue bonds as provided under sections 1 to 16 in one or more 
series or issues for the purposes provided in this section in 
the aggregate principal amount of up to $350,000,000, except for 
refunding bonds.  Proceeds of the bonds and investment income on 
the proceeds are appropriated in the amounts and for the 
purposes specified in subdivisions 2, 5, and 6 and section 4.  
    Subd. 2.  [LOAN, LEASE, AND REVENUE AGREEMENTS.] (a) The 
commissioner may loan the proceeds of the bonds, make other 
loans or enter into lease agreements or other revenue agreements 
for the projects described in subdivisions 5 and 6.  The 
commissioner may provide for servicing of the loans and 
agreements, the times they are payable and the amounts of 
payments, the amount of the loans and agreements, their 
security, and other terms, conditions, and provisions necessary 
or convenient in connection with them and may enter into all 
necessary contracts and security instruments in connection with 
them.  The commissioner shall seek to obtain the best available 
terms and security for the loans or agreements.  The terms and 
security must be reasonably determined by the commissioner to be 
adequate and of the kind and degree which would be required by 
an investment banking or other financial institution.  The 
facilities described in subdivisions 5 and 6 must be pledged as 
collateral for the loans made and bonds issued under sections 1 
to 16. 
    (b) To reduce the risk that state general funds will be 
needed to pay debt service on the state guaranteed bonds, the 
commissioner must require that the financing arrangements 
include a coverage test satisfactory to the commissioner so that 
the sum of the value of the assets and other security pledged to 
the payment of bonds or the rent due under any lease of the 
project and taken into account by the commissioner is no less 
than 125 percent of the difference between the outstanding state 
guaranteed bonds, and any cash collateral held in a debt service 
reserve account and pledged to the payment of principal and 
interest for the state guaranteed bonds and no other bonds.  
Assets and other security that may be taken into account include 
(1) net unencumbered value of the project and any collateral or 
third party guaranty, including a letter of credit, pledged or 
otherwise furnished by a user of the project or by a benefited 
airline company as security for the payment of rent, (2) bond 
proceeds, including earnings thereon, and (3) prepayments of 
rent, after making such adjustments the commissioner determines 
to be appropriate to take into account any outstanding bonds 
secured by a lien on the project or rent that is prior to the 
lien securing the state guaranteed bonds, but excluding any cash 
collateral deducted from the outstanding state guaranteed bonds 
in applying the coverage test.  The commissioner may adopt the 
method of valuing the assets and other security as the 
commissioner determines to be appropriate, including valuation 
of the project at its original cost less depreciation. 
    Subd. 3.  [REVIEW PROCEDURE; DATA PRACTICES.] (a) Before 
issuing the bonds for a project, approving financial assistance, 
or entering into loan, lease, or other revenue agreements for 
the project described in subdivisions 5 and 6, the commissioner 
of finance shall review the financial condition of the proposed 
lessee or lessees of the project or projects, and any related 
person.  The commissioner shall exercise due diligence in the 
review.  The commissioner shall engage an independent, 
nationally recognized consultant having special expertise with 
the airline industry and its financing to prepare a written 
report on the financial condition of the lessee or lessees and 
any related person.  A lessee and any related person shall 
provide all information required for the commissioner's review 
and the consultant's report, including information substantially 
equivalent to that required by an investment bank or other 
financial institution considering a project for debt financing. 
    (b) Except as otherwise provided in this subdivision, 
business plans, financial statements, customer lists, and market 
and feasibility studies required under sections 1 to 16 or 
submitted in connection with the provision of financial 
assistance or any agreement authorized under this act are 
nonpublic data, as defined in section 13.02, subdivision 9.  The 
commissioner or the commissioner of trade and economic 
development may make the data accessible to any person, agency, 
or public entity if the commissioner or the commissioner of 
trade and economic development determines that access is 
required under state or federal securities law or is necessary 
for the person, agency, or public entity to perform due 
diligence in connection with the provision of financial 
assistance to the projects described in subdivisions 5 and 6.  
The data may also be made available as requested by the 
legislative commission on planning and fiscal policy. 
    (c) Before the commissioner issues bonds for a project, 
approves financial assistance, or enters into loan, lease, or 
other revenue agreements for the project, the commissioner shall 
submit a report on the proposed transaction to the governor.  
The report must describe:  all proposed state, metropolitan, and 
local government financial commitments; the financial assistance 
proposed to be provided; the proposed loan, lease, and revenue 
agreements; any other arrangements related to state and local 
debt, taxes, financing, and debt service; and the estimates of 
economic activity, air traffic, and other factors that have been 
used in assessing the prospective financial condition of the 
lessee or lessees and any related person.  The report must 
contain the following findings: 
    (1) that the commissioners of trade and economic 
development and finance and, for purposes of a project described 
in subdivision 5, the metropolitan airports commission have 
reviewed the current and prospective financial condition of each 
proposed lessee of the project or projects and any related 
person; and 
    (2) that, on the basis of their review, the commissioners 
and, for purposes of the project described in subdivision 5, the 
commission have determined that the revenues estimated to be 
available to the lessee or lessees for payments under the loan, 
lease, or other revenue agreements are at least sufficient 
during each year of the term of the proposed bonds to pay when 
due all financial obligations of the lessee or lessees under the 
terms of the proposed loan, lease, or other revenue agreements.  
Copies of the report must be filed at the legislature as 
provided in section 3.195 when the report is submitted to the 
governor. 
    Subd. 4.  [SECURITY.] (a) If so provided in the 
commissioner's order or any indenture authorizing the applicable 
series of bonds, up to $125,000,000 principal amount of bonds 
for the facility described in subdivision 5, up to $50,000,000 
principal amount of bonds for the facility described in 
subdivision 6, and any bonds issued to refund these bonds may be 
secured by either of the following methods:  
    (1) upon the occurrence of any deficiency in a debt service 
reserve fund for a series of bonds as provided in section 13, 
subdivision 3, the commissioner shall issue and sell deficiency 
bonds in a principal amount not to exceed (i) $125,000,000 for 
facilities described in subdivision 5 and (ii) $50,000,000 for 
the facilities described in subdivision 6; or 
    (2) the bonds may be directly secured by a pledge of the 
full faith, credit, and taxing power of the state and issued as 
general obligation revenue bonds of the state in accordance with 
the Minnesota Constitution, article XI, sections 4 to 7.  In no 
event may the security provided by this paragraph extend in 
whole or part to any series of bonds other than the initial 
series of bonds so secured and any series of bonds issued to 
refund these bonds. 
    Deficiency bonds and bonds issued under clause (2) must be 
issued in accordance with and subject to sections 16A.641, 
16A.66, 16A.672, and 16A.675, except for section 16A.641, 
subdivision 5, except as otherwise provided in this article, and 
except that the bonds may be sold at public or private sale at a 
price or prices determined by the commissioner as provided in 
section 13, subdivision 3.  
    (b) The commissioner may request St. Louis county to pay or 
secure payment of principal and interest due on up to 
$12,600,000 principal amount of revenue bonds for the facility 
described in subdivision 5 and principal and interest due on up 
to $15,000,000 principal amount of revenue bonds for the 
facility described in subdivision 6.  At the request of the 
commissioner, St. Louis county shall, by resolution of its 
county board, unconditionally and irrevocably pledge as a 
general obligation, its full faith, credit, and taxing power to 
pay or secure payment of principal and interest due on the 
principal amount or amounts requested by the commissioner.  The 
general obligation and pledge of St. Louis county are not 
subject to and shall not be taken into account for purposes of 
any debt limitation.  A levy of taxes for the St. Louis county 
general obligation is not subject to and shall not be taken into 
account for purposes of any levy limitations.  The general 
obligation and the bonds secured by the general obligation may 
be issued without an election.  Except for sections 475.61 and 
475.64, chapter 475 does not apply to the general obligation or 
to the bonds secured by the general obligation. 
     (c) The commissioner may request the city of Duluth to pay 
or secure payment of principal and interest due on up to 
$47,600,000 principal amount of revenue bonds for the facility 
described in subdivision 5.  At the request of the commissioner, 
the city of Duluth shall pledge specified revenues of the city, 
as provided in section 24, to pay principal and interest due on 
the principal amount requested by the commissioner. 
    (d) Bonds and deficiency bonds issued under sections 1 to 
16 and any indenture entered into in connection with the 
issuance of the bonds are not subject to section 16B.06.  
    Subd. 5.  [USE OF PROCEEDS; AIRCRAFT MAINTENANCE FACILITY.] 
The proceeds of the bonds issued in a principal amount not to 
exceed $250,000,000 may be used to finance the costs related to 
the planning, construction, improvement, or equipping of a heavy 
maintenance facility for aircraft and facilities subordinate and 
related to the facility to be located at the Duluth 
international airport and any costs of issuance, reserves, 
credit enhancement, or an initial period of interest payments 
related to the bonds or the facility.  The bond proceeds are 
appropriated to the commissioner for the purposes specified in 
this subdivision.  The facility may be owned by the metropolitan 
airports commission and leased for the benefit of one or more 
airline companies for use as a heavy maintenance base.  With the 
approval of the commissioner, the owner of the facility may 
place a mortgage or security interest lien on the facility or 
any interest in or part of the facility.  The mortgage is exempt 
from the mortgage registry tax imposed under chapter 287.  In 
the event of a default under the loan, lease agreement, or other 
revenue agreement, the facility, or any part of the facility, 
may be leased or sold to another person for any lawful purpose, 
subject to the approval of the commissioner.  The approval of 
the commissioner is not required if the bond trustee has taken 
control of the facility as a result of a default. 
    The ownership of the facility by the owner may create no 
liability of the owner for payment of the debt service on the 
bonds if so determined by the commissioner.  The owner may 
require as a condition of entering into the lease of the 
facility that the lessee or other party pay all costs, expenses, 
or any other obligations of ownership of the facility. 
     No revenues derived from the lease of the project may be 
used other than for a purpose related to the project, including 
its operation, administration, maintenance, improvement, or 
financing. 
    Subd. 6.  [USE OF PROCEEDS; AIRCRAFT ENGINE REPAIR 
FACILITY.] The proceeds of the bonds issued in a principal 
amount not to exceed $100,000,000 may be used to finance the 
costs related to the planning, construction, improvement, or 
equipping of an aircraft engine repair facility and facilities 
subordinate and related to the facility to be located at the 
Chisholm-Hibbing municipal airport in the city of Hibbing and 
any costs of issuance, reserves, credit enhancement, or an 
initial period of interest payments related to the bonds or the 
facility.  The bond proceeds are appropriated to the 
commissioner for the purposes specified in this subdivision.  
The facility may be owned by the owner of the Chisholm-Hibbing 
municipal airport, but may be leased, with or without a purchase 
option, to any person for the primary purpose of repairing 
aircraft engines or components.  With the approval of the 
commissioner, the owner of the facility may place a mortgage or 
security interest lien on the facility.  The mortgage is exempt 
from the mortgage registry tax imposed under chapter 287.  In 
the event of a default under the loan, lease agreement, or other 
revenue agreement, the facility may be leased or sold to another 
person for any lawful purpose, subject to the approval of the 
commissioner.  The approval of the commissioner is not required 
if the bond trustee has taken control of the facility as a 
result of a default. 
    Subd. 7.  [AGREEMENT OF LESSEE.] (a) Before issuing the 
bonds for the facilities, approving financial assistance, or 
entering into loan, lease, or other revenue agreements for the 
projects described in subdivisions 5 and 6, the commissioner 
shall determine that the lessee and, if necessary, other 
corporations affiliated with by common ownership with the lessee 
have agreed to requirements satisfactory to the commissioner 
respecting aircraft noise abatement. 
     (b) The leases for each of the facilities described in 
subdivisions 5 and 6 must contain covenants and agreements by 
the airline corporation and any successor in interest providing 
for the retention and location of existing employees, 
operations, and facilities, including headquarters, of the 
airline corporation in the state until the principal and 
interest on the last series of deficiency bonds and general 
obligation revenue bonds issued under subdivision 4, paragraph 
(a), clause (2), are paid. 
    Subd. 8.  [ENVIRONMENTAL ASSESSMENT.] Notwithstanding any 
other law or rule, no environmental review must be completed 
prior to the approval of an application and the issuance of a 
conditional commitment for the loan, or the taking of any other 
action permitted by article 1, including the issuance of bonds, 
unless considered necessary or desirable by the commissioner to 
prepare for a final commitment and to make it effective.  
Environmental review, to the extent required by law, shall be 
made in conjunction with the issuance by state agencies of 
environmental permits for the project.  Permits may be applied 
for prior to the issuance of a conditional commitment. Action 
shall be taken as expeditiously as possible on environmental 
review and all permits required.  
    Subd. 9.  [PROJECT COST REPORT.] Before the commissioner of 
finance issues bonds, approves financial assistance, or enters 
into loan, lease, or other revenue agreements for the projects 
described in subdivisions 5 and 6, the commissioner of trade and 
economic development shall report to the governor on total 
public costs related to the construction of the projects.  The 
report must include:  an estimate of the total state, 
metropolitan, and local tax costs for the project; and an 
estimate of the total state, metropolitan, and local capital 
costs, and method of financing, of any airport and off-airport 
improvements related to the construction of the facilities but 
not included in the cost of the facilities, including any runway 
or taxiway improvements and road, highway, sewer, or other 
public facility or utility improvement costs.  Copies of the 
report must be filed at the legislature as provided in section 
3.195 when the report is submitted to the governor. 
    Sec. 3.  [116R.03] [GENERAL POWERS.] 
    For the purpose of exercising the specific powers 
authorized under sections 1 to 16 and effectuating the other 
purposes of sections 1 to 16, the commissioner may:  
    (1) acquire, hold, pledge, assign, or dispose of real or 
personal property or any interest in property, including a 
mortgage or security interest in a facility described in section 
2, subdivision 5 or 6; 
    (2) enter into agreements, contracts, or other transactions 
with any federal or state agency, any person and any domestic or 
foreign partnership, corporation, association, or organization, 
including contracts or agreements for administration and 
implementation of all or part of sections 1 to 16; 
    (3) acquire real property, or an interest therein, by 
purchase or foreclosure, where the acquisition is necessary or 
appropriate; 
    (4) enter into agreements with lenders, borrowers, or the 
issuers of securities for the purpose of regulating the 
development and management of any facility financed in whole or 
in part by the proceeds of bonds or loans; 
    (5) enter into agreements with other appropriate federal, 
state, or local governmental units; and 
    (6) contract with, use, or employ any federal, state, 
regional, or local public or private agency or organization, 
legal counsel, financial advisors, investment bankers or others, 
upon terms the commissioner considers necessary or desirable, to 
assist in the exercise of any of the powers authorized under 
sections 1 to 16 and to carry out the objectives of sections 1 
to 16 and may pay for the services from bond proceeds or 
otherwise available department money. 
    Sec. 4.  [116R.04] [REVENUE BONDS; PURPOSES, TERMS, 
APPROVAL.] 
    Subdivision 1.  [BONDS.] The commissioner from time to time 
may issue negotiable bonds in one or more series or issues in a 
principal amount which, in the opinion of the commissioner of 
trade and economic development, is necessary to provide 
sufficient funds for achieving the purposes of sections 1 to 16, 
which may include the construction of a heavy maintenance 
facility for aircraft to be located at the Duluth international 
airport, the financing of an aircraft engine repair facility in 
the city of Hibbing, the payment of interest on bonds of the 
commissioner, the establishment of reserves to secure the bonds, 
and the payment of all other expenditures of the commissioner 
and the owner of a financed facility incident to and necessary 
or convenient to carry out the purposes and powers of sections 1 
to 16.  The bonds may be issued as bonds or notes or in any 
other form authorized by law.  Except as provided in section 2, 
subdivision 4, paragraph (a), section 4, subdivision 3, or an 
order of the commissioner or indenture authorizing the bonds, 
sections 16A.631 to 16A.675 do not apply to the bonds authorized 
under section 2.  
    Subd. 2.  [REFUNDING OF BONDS.] The commissioner from time 
to time may issue bonds for the purpose of refunding any bonds 
then outstanding, including the payment of any redemption 
premiums thereon, any interest accrued or to accrue to the 
redemption date, and costs related to the issuance and sale of 
the bonds.  The proceeds of any refunding bonds may, in the 
discretion of the commissioner, be applied to the purchase or 
payment at maturity of the bonds to be refunded, to the 
redemption of such outstanding bonds on any redemption date, or 
to pay interest on the refunding bonds and may, pending such 
application, be placed in escrow to be applied to such purchase, 
payment, retirement, or redemption.  Any such escrowed proceeds, 
pending such use, may be invested and reinvested in obligations 
that are authorized investments under section 11A.24.  The 
income earned or realized on any such investment may also be 
applied to the payment of the bonds to be refunded, interest or 
premiums on the refunded bonds, or to pay interest on the 
refunding bonds.  After the terms of the escrow have been fully 
satisfied, any balance of such proceeds and any investment 
income may be returned to the general fund or, if applicable, 
the state bond fund, for use in any lawful manner.  All 
refunding bonds issued under the provisions of this subdivision 
must be issued and secured in the manner provided by order of 
the commissioner, provided that any refunding bonds may be 
secured in any manner by which the refunded bonds were secured 
and payable from any source from which the refunded bonds were 
payable.  
    Subd. 3.  [KIND OF BONDS.] All bonds issued under this 
section must be issued in the form and manner and information in 
a bond register is subject to the limitations provided in 
section 16A.672. 
    Subd. 4.  [COMPLIANCE WITH FEDERAL LAW.] The commissioner 
may covenant and agree with the holders of the bonds that the 
state will comply, insofar as possible, with the provisions of 
the United States Internal Revenue Code now or hereafter enacted 
that are applicable to the bonds and that establish conditions 
under which the interest to be paid on the bonds will not be 
includable in gross income for federal tax purposes. 
    Subd. 5.  [TAXABILITY OF INTEREST.] The bonds may be issued 
without regard to whether the interest to be paid on them is 
includable in gross income for federal tax purposes. 
    Sec. 5.  [116R.05] [BONDS; ORDERS AUTHORIZING, ADDITIONAL 
TERMS, SALE.] 
    Subdivision 1.  [TERMS.] The bonds must be authorized by an 
order or orders of the commissioner, bear such date or dates, 
mature at such time or times, bear interest at such rate or 
rates, be in such denominations, be in such form, carry such 
registration privileges, be executed in such manner, be payable 
in lawful money of the United States, at such place or places 
within or without the state, and be subject to such terms of 
redemption or purchase prior to maturity as the order or orders 
may provide, or as may be provided in any indenture or 
indentures of trust.  If, for any reason, whether existing at 
the date of issue of any bonds or at the date of making or 
purchasing any loan or securities from the proceeds or after 
that date, the interest on any bonds is or becomes subject to 
federal income taxation, this shall not impair or affect the 
validity of the provisions made for the security of the bonds.  
The bonds may be sold at public or private sale at a price or 
prices determined by the commissioner.  The underwriting 
discount, spread, or commission paid or allowed to the 
underwriters of the bonds, however, must be an amount not in 
excess of the amount determined by the commissioner to be 
reasonable in the light of the risk assumed and the expenses of 
issuance, if any, required to be paid by the underwriters or 
prevailing market conditions and practices. 
    Subd. 2.  [SOURCES OF PAYMENT.] Except as otherwise 
provided for bonds issued under section 2, subdivision 4, 
paragraph (a), the bonds and interest payable thereon are 
payable solely from the following sources and are irrevocably 
appropriated for that purpose, but only to the extent provided 
in the order or indenture authorizing or securing the bonds: 
    (1) revenues of any nature derived from the ownership, 
lease, operation, sale, foreclosure, or refinancing of a project 
described in section 2, subdivision 5 or 6; 
    (2) repayments of any loans made under sections 1 to 16; 
    (3) proceeds of any bonds or deficiency bonds; 
    (4) amounts in any account or accounts authorized by 
section 11 or 12; 
    (5) amounts paid by St. Louis county under its obligations 
referred to in section 2, subdivision 4, and amounts paid under 
section 24 or 25 for the payment of bonds or interest thereon; 
    (6) amounts payable under any insurance policy, guaranty, 
letter of credit, or other instrument securing the bonds; 
    (7) any other revenues which the commissioner may pledge 
but excluding state appropriations unless the appropriation was 
specifically designated for that purpose; and 
     (8) investment income on any of the sources specified in 
clauses (1) to (7). 
    Subd. 3.  [NOT A STATE DEBT.] Except as provided in section 
2, subdivision 4, paragraph (a), no bond shall constitute a debt 
of the state within the meaning of any statutory or 
constitutional limitation or pledge the full faith and credit of 
the state and no holder of any bonds may compel any exercise of 
the taxing power of the state to pay principal, premiums, or 
interest for the bonds, nor to enforce payment of principal, 
premiums, or interest against any property of the state, except 
for property expressly pledged, mortgaged, encumbered, or 
appropriated for this purpose. 
    Sec. 6.  [116R.06] [BONDS; OPTIONAL ORDER AND CONTRACT 
PROVISIONS.] 
    Any order authorizing any bonds or any issue of bonds or 
any indenture may contain provisions, which may be a part of the 
contract with the holders of the bonds, as to the matters 
referred to in this section. 
    (a) It may pledge or create a lien on money or property and 
any money held in trust or otherwise by others to secure the 
payment of the bonds or of any series or issue of bonds and 
interest thereon and of any sums due to the trustee under the 
indenture, and may grant different priorities in the lien for 
different series of bonds, subject to any agreements with 
bondholders which exist. 
    (b) It may provide for the custody, collection, securing, 
investment, and payment of money. 
    (c) It may set aside reserves or sinking funds and provide 
for their regulation and disposition and may create other 
special funds into which money may be deposited. 
    (d) It may limit the loans and securities to which the 
proceeds of sale of bonds may be applied and may pledge 
repayments thereon to secure the payment of the bonds or of any 
series or issue of bonds. 
    (e) It may limit the issuance of additional bonds, the 
terms upon which additional bonds may be issued and secured, and 
the refunding of outstanding or other bonds. 
    (f) It may prescribe the procedure, if any, by which the 
terms of any contract with bondholders may be amended or 
abrogated, the amount of bonds the holders of which must consent 
to the amendment or abrogation, and the manner in which that 
consent may be given. 
    (g) It may vest in a trustee or trustees property, rights, 
powers, and duties in trust determined by the commissioner, 
which may include any or all of the rights, powers, and duties 
of the bondholders, or may limit the rights, powers, and duties 
of the trustee.  It may make contracts with a trustee or 
trustees authorizing the trustee or trustees to invest in 
investments that may be invested in by the state board of 
investment under section 11A.24, and apply, or dispose of and 
use money in any account. 
    (h) It may define the acts or omissions to act which 
constitute a default in the obligations and duties of the 
commissioner and may provide for the rights and remedies of the 
holders of bonds in the event of a default, and provide any 
other matters of like or different character, consistent with 
the general laws of the state and other provisions of sections 1 
to 16, which in any way affect the security or protection of the 
bonds and the rights of the bondholders. 
     (i) It may incur obligations under the indenture or under 
any paying agency, bond registrar agreement or escrow agreement 
to pay the compensation and expenses of the trustee, paying 
agent, bond registrar or escrow agent for the bonds and to pay 
any sums required to be rebated to the United States to comply 
with applicable tax laws; and a sum sufficient to satisfy these 
obligations is annually appropriated to the commissioner from 
the general fund to the extent other revenues available for that 
purpose are insufficient. 
    Sec. 7.  [116R.07] [PLEDGES.] 
    Any pledge made by the commissioner is valid and binding 
from the time the pledge is made.  The money or property pledged 
and later received by the commissioner 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, 
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. 
    Sec. 8.  [116R.08] [BONDS; NONLIABILITY OF INDIVIDUALS.] 
    The commissioner and the commissioner's staff and any 
person executing the bonds are not personally liable on the 
bonds or subject to any personal liability or accountability by 
reason of their issuance. 
    Sec. 9.  [116R.09] [BONDS; PURCHASE AND CANCELLATION.] 
    The commissioner, subject to agreements with bondholders 
which may then exist, has power out of any funds available for 
the purpose to purchase bonds of the commissioner at a price not 
exceeding (a) if the bonds are then redeemable, the redemption 
price then applicable plus accrued interest to the next interest 
payment date thereon, or (b) 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. 
    Sec. 10.  [116R.10] [STATE PLEDGE AGAINST IMPAIRMENT OF 
CONTRACTS.] 
    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 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 may include this pledge and 
agreement of the state in any agreement with the holders of 
bonds issued under sections 1 to 16. 
    Sec. 11.  [116R.11] [AIRCRAFT FACILITIES FUNDS AND DEBT 
SERVICE ACCOUNTS.] 
    Subdivision 1.  [FUNDS.] The commissioner or any trustee 
appointed by the commissioner under sections 1 to 16 shall 
establish and maintain an aircraft facilities fund for each of 
the projects described in section 2, subdivisions 5 and 6.  
Except for amounts required by the commissioner to be deposited 
in a debt service account, proceeds of each issue of bonds 
authorized under section 2, subdivision 1, must be deposited in 
a separate account, debt service reserve, or other account 
designated by the commissioner.  Money in the account is 
appropriated to the commissioner.  The commissioner or the owner 
of each project described in section 2, subdivisions 5 and 6, 
may withdraw proceeds of bonds for application to the 
appropriated purposes in the manner provided by order of the 
commissioner or in any indenture authorized by order of the 
commissioner.  The commissioner may establish whatever accounts 
might be necessary to carry out sections 1 to 16.  All deposits 
into and disbursements from accounts for the purposes and from 
the sources of revenue authorized by sections 1 to 16 and 
provided in an order of the commissioner or an indenture or 
other agreement authorized by the commissioner are appropriated 
for that purpose. 
    Subd. 2.  [ACCOUNTS.] The state treasurer or any trustee 
appointed by the commissioner under sections 1 to 16 shall 
maintain permanently on official books and records debt service 
accounts separate from all other funds and accounts, to record 
all receipts and disbursements of money for principal and 
interest payments on each series of bonds.  No later than the 
due date of each principal and interest payment on the bonds, 
the commissioner shall withdraw from the proceeds of the bonds, 
or from revenues on hand and available for the purpose, and 
shall deposit in the debt service accounts the amount, if any, 
required to be deposited in the account by the order of the 
commissioner or any indenture authorized by an order of the 
commissioner.  All amounts in any debt service account are 
appropriated for the payment of principal, premiums, and 
interest for the bonds to which the account relates.  If the 
Minnesota Constitution, article XI, section 7, applies to any 
series of bonds, amounts in the debt service account and any 
debt service reserve account established under section 13 for 
the bonds, regardless of who holds or invests the amounts, must 
be special accounts of the state bond fund, for which the state 
treasurer shall maintain records.  Amounts in the accounts must 
reduce any levy otherwise required by the Minnesota Constitution 
for payment of principal or interest on the bonds. 
    Sec. 12.  [116R.12] [POWERS AND DUTIES OF TRUSTEE.] 
    Subdivision 1.  [GENERAL.] The trustee, if any, designated 
in any indenture or order securing an issue of bonds may, in the 
trustee's own name, if so provided in the indenture or order: 
    (1) enforce all rights of the bondholders, including the 
right to require the commissioner to collect fees, charges, 
interest, and payments on leases, loans, or interests therein 
held by the commissioner and eligible securities purchased by it 
adequate to carry out any agreement as to, or pledge of, those 
fees, charges, and payments, and to require the commissioner to 
carry out any other agreements with the holders of the bonds and 
to perform the duties required under sections 1 to 16; 
    (2) bring suit upon the bonds; 
    (3) require the commissioner to account as if it were the 
trustee of any express trust for the holders of the bonds; 
    (4) enjoin any acts or things which may be unlawful or in 
violation of the rights of holders of the bonds; or 
    (5) upon a default as defined in any bond, order, or 
indenture, declare all the bonds due and payable, enforce any 
remedy available under law, and if all defaults are made good, 
the trustee may annul the declaration and consequences. 
    Subd. 2.  [ADDITIONAL POWERS.] In addition to the powers in 
subdivision 1, the trustee has all of the powers necessary or 
appropriate for the exercise of any functions specifically set 
forth in this section or incident to the general representation 
of bondholders in the enforcement and protection of their rights.
    Subd. 3.  [VENUE.] The venue of any action or proceedings 
brought by a trustee is in Ramsey county.  
   Sec. 13.  [116R.13] [DEBT SERVICE RESERVE ACCOUNT.] 
    Subdivision 1.  [AUTHORITY.] The commissioner or a trustee 
appointed by the commissioner may create, maintain, and 
establish a special account or accounts for the security of one 
or more or all series of the bonds, which accounts are known as 
debt service reserve accounts.  The commissioner may pay into 
each debt service reserve account: 
    (1) any money appropriated by the state only for the 
purposes of that account; 
    (2) any proceeds of sale of bonds to the extent provided in 
the order or indenture authorizing their issuance; 
    (3) any money directed to be transferred by the 
commissioner to that debt service reserve account; and 
    (4) any other money made available to the commissioner for 
the purpose of that account from any other source. 
    Subd. 2.  [USE OF MONEY.] The money held in or credited to 
each debt service reserve account, except as provided in this 
section, must be used solely for the payment of the principal of 
bonds of the commissioner as the bonds mature or otherwise 
become due, the purchase of the bonds, the payment of interest 
on the bonds, the payment of any premium required when the bonds 
are redeemed before maturity, the payment of trustee or paying 
agency or registrar fees and expenses, the reimbursement of any 
advance made from another fund or account, or the payment of any 
rebate amounts owing to the United States government in 
accordance with any applicable covenant to comply with federal 
tax laws; provided, that money in a debt service reserve account 
may not be withdrawn at any time in an amount which would reduce 
the amount of the account to less than any amount which the 
commissioner determines to be reasonably necessary for the 
purposes of the account, except for the purpose of paying 
principal, premium, or interest due on bonds secured by the 
account, for the payment of which other money is not available. 
    Subd. 3.  [GENERAL OBLIGATION BONDS.] (a) If the amount in 
any debt service reserve account falls below the minimum 
required in an order of the commissioner or indenture for the 
applicable series of bonds and the order or indenture so 
provides and subject to the limitations in section 2, 
subdivision 4, paragraph (a), clause (1), the commissioner shall 
issue as promptly as practicable, but in no event later than six 
months after the occurrence of the deficiency, general 
obligation bonds in accordance with the Minnesota Constitution, 
article XI, section 7, and section 2, subdivision 4; section 
16A.641, subdivisions 1 to 4 and 6 to 13; section 16A.66, 
section 16A.672; and section 16A.675, except as otherwise 
provided in this section and unless provision is made for 
restoring the deficiency from other sources.  Section 16A.641, 
subdivision 5, does not apply to the issuance of bonds 
authorized under this subdivision.  Amounts sufficient to pay 
the costs of issuance of the deficiency bonds are appropriated 
to the commissioner from the general fund to the extent other 
available money is insufficient.  Proceeds of the deficiency 
bonds may be used to pay costs related to the issuance of the 
deficiency bonds and interest due on the deficiency bonds and to 
establish a debt service reserve for the deficiency bonds.  Any 
remaining proceeds must be deposited in the debt service reserve 
account, except that accrued interest must be deposited as 
provided in section 16A.641, subdivision 7, paragraph (b).  The 
proceeds of the deficiency bonds and any investment income are 
appropriated for these purposes.  In any event, the proceeds of 
the deficiency bonds deposited in the debt service reserve 
account must be an amount not less than the commissioner 
determines is required to pay principal and interest on the 
state guaranteed bonds secured by the debt service reserve 
account. 
     (b) The underwriting discount, spread, or commission paid 
or allowed to the underwriters or placement agents of deficiency 
bonds and bonds described in section 2, subdivision 4, paragraph 
(a), must be an amount not in excess of the amount determined by 
the commissioner to be reasonable in light of the risk assumed 
and the expense of issuance, if any, required to be paid by the 
underwriters, placement agents, or prevailing market conditions 
and practices. 
    Subd. 4.  [LIMITATION.] If the commissioner creates a debt 
service reserve account for the security of any series of bonds, 
the commissioner may not issue any additional bonds which are 
similarly secured if the amount of any of the debt service 
reserve accounts at the time of issuance does not equal or 
exceed the minimum amount, if any, required by the resolution 
creating that account, unless the commissioner deposits in each 
account at the time of issuance, from the proceeds of the bonds 
or otherwise, an amount which, together with the amount then in 
the account, will not be less than the minimum amount required. 
    Subd. 5.  [EXCESS MONEY.] To the extent consistent with the 
orders and indentures securing outstanding bonds, the 
commissioner may, at the close of any fiscal year, transfer to 
any other account from any debt service reserve account, any 
excess in that account over the amount considered by the 
commissioner to be reasonably necessary for the purpose of the 
account. 
    Subd. 6.  [CONSTRUCTION.] Nothing in this section may be 
construed to limit the right of the commissioner to create and 
establish by order or indenture other accounts or security in 
addition to debt service reserve accounts which are necessary or 
desirable in connection with any bonds. 
    Sec. 14.  [116R.14] [CONSTRUCTION.] 
    Sections 1 to 16 are necessary for the welfare of the state 
of Minnesota and its inhabitants; therefore, they shall be 
liberally construed to effect their purpose. 
    Sec. 15.  [116R.15] [SEVERABILITY; ACTIONS.] 
    Each of the provisions of sections 1 to 16, and each 
application thereof to particular circumstances, is severable.  
If any provision or application is found to be unconstitutional 
and void, it is the intention that the remaining provisions and 
applications shall be valid and enforceable to the full extent 
possible under section 645.20.  
     Sec. 16.  [116R.16] [CORPORATE HEADQUARTERS.] 
    A lease agreement may be entered under sections 1 to 15 
only if the affected parties provide an enforceable pledge that 
their corporate headquarters will remain in Minnesota for the 
duration of the agreement. 
     Sec. 17.  Minnesota Statutes 1990, section 272.01, 
subdivision 2, is amended to read: 
    Subd. 2.  (a) When any real or personal property which is 
exempt from ad valorem taxes, and taxes in lieu thereof, is 
leased, loaned, or otherwise made available and used by a 
private individual, association, or corporation in connection 
with a business conducted for profit, there shall be imposed a 
tax, for the privilege of so using or possessing such real or 
personal property, in the same amount and to the same extent as 
though the lessee or user was the owner of such property. 
    (b) The tax imposed by this subdivision shall not apply to: 
    (1) property leased or used as a concession in or relative 
to the use in whole or part of a public park, market, 
fairgrounds, port authority, economic development authority 
established under chapter 458C, municipal auditorium, municipal 
parking facility, municipal museum, or municipal stadium; 
    (2) property of an airport owned by a city, town, county, 
or group thereof which is:  
    (i) leased to or used by any person or entity including a 
fixed base operator; and 
    (ii) used as a hangar for the storage or repair of aircraft 
or to provide aviation goods, services, or facilities to the 
airport or general public; 
the exception from taxation provided in this clause does not 
apply to: 
    (i) property located at an airport owned or operated by the 
metropolitan airports commission or by a city of over 50,000 
population according to the most recent federal census or such a 
city's airport authority; or 
    (ii) hangars leased by a private individual, association, 
or corporation in connection with a business conducted for 
profit other than an aviation-related business; or 
    (iii) facilities leased by a private individual, 
association or corporation in connection with a business for 
profit, that consists of a major jet engine repair facility 
financed, in whole or part, with the proceeds of state bonds and 
located in a tax increment financing district; 
    (3) property constituting or used as a public pedestrian 
ramp or concourse in connection with a public airport; or 
    (4) property constituting or used as a passenger check-in 
area or ticket sale counter, boarding area, or luggage claim 
area in connection with a public airport but not the airports 
owned or operated by the metropolitan airports commission or 
cities of over 50,000 population or an airport authority 
therein.  Real estate owned by a municipality in connection with 
the operation of a public airport and leased or used for 
agricultural purposes is not exempt. 
    (c) Taxes imposed by this subdivision are payable as in the 
case of personal property taxes and shall be assessed to the 
lessees or users of real or personal property in the same manner 
as taxes assessed to owners of real or personal property, except 
that such taxes shall not become a lien against the property.  
When due, the taxes shall constitute a debt due from the lessee 
or user to the state, township, city, county, and school 
district for which the taxes were assessed and shall be 
collected in the same manner as personal property taxes.  If 
property subject to the tax imposed by this subdivision is 
leased or used jointly by two or more persons, each lessee or 
user shall be jointly and severally liable for payment of the 
tax. 
    (d) The tax on real property of the state or any of its 
political subdivisions that is leased by a private individual, 
association, or corporation and becomes taxable under this 
subdivision or other provision of law must be assessed and 
collected as a personal property assessment.  The taxes do not 
become a lien against the real property. 
    Sec. 18. Minnesota Statutes 1990, section 290.06, is 
amended by adding a subdivision to read: 
    Subd. 24.  [CREDIT FOR JOB CREATION.] (a) A corporation 
that leases and operates a heavy maintenance base for aircraft 
that is owned by the state of Minnesota or one of its political 
subdivisions, or an engine repair facility described in section 
2, subdivision 6, or both, may take a credit against the tax due 
under this chapter.  
    (b) For the first taxable year when the facility has been 
in operation for at least three consecutive months, the credit 
is equal to $5,000 multiplied by the number of persons employed 
by the corporation on a full-time basis at the facility on the 
last day of the taxable year, not to exceed the number of 
persons employed by the corporation on a full-time basis at the 
facility on the date 90 days before the last day of the taxable 
year.  For each of the succeeding four taxable years, the credit 
is equal to $5,000 multiplied by the number of persons employed 
by the corporation on a full-time basis at the facility on the 
last day of the taxable year, not to exceed the number of 
persons employed by the corporation on a full-time basis at the 
facility on the date 90 days before the last day of the taxable 
year.  
    (c) For the first taxable year in which the credit is 
allowed for the facility, the credit must not exceed 80 percent 
of the wages paid to or incurred for persons employed by the 
taxpayer at the facility during the taxable year.  For the 
succeeding four taxable years, the credit must not exceed 20 
percent of the wages paid to or incurred for persons employed by 
the taxpayer at the facility during the taxable year.  For 
purposes of this section, "wages" has the meaning given under 
section 3121(b) of the Internal Revenue Code of 1986, as amended 
through December 31, 1990, except the limitation to the 
contribution and benefit base does not apply. 
    (d) If the credit provided under this subdivision exceeds 
the tax liability of the corporation for the taxable year, the 
excess amount of the credit may be carried over to each of the 
ten taxable years succeeding the taxable year.  The entire 
amount of the credit must be carried to the earliest taxable 
year to which the amount may be carried.  The unused portion of 
the credit must be carried to the following taxable year.  No 
credit may be carried to a taxable year more than ten years 
after the taxable year in which the credit was earned. 
    Sec. 19.  [297A.2571] [AIRCRAFT FACILITY MATERIALS; 
EXEMPTIONS.] 
    Materials, equipment, and supplies used or consumed in 
constructing, or incorporated into the construction of, a heavy 
maintenance facility for aircraft that is to be owned by the 
state of Minnesota or one of its political subdivisions and 
leased by an airline company, or an aircraft engine repair 
facility described in section 2, subdivision 6, are exempt from 
the taxes imposed under this chapter and from any sales and use 
tax imposed by a local unit of government, notwithstanding any 
ordinance or city charter provision.  Except for equipment owned 
or leased by a contractor, all machinery, equipment, and tools 
necessary to the construction and equipping of that facility in 
order to provide those services is also exempt. 
    Sec. 20.  Minnesota Statutes 1990, section 360.013, 
subdivision 5, is amended to read: 
    Subd. 5.  "Airport" means any area, of land or water, 
except a restricted landing area, which is designed for the 
landing and takeoff of aircraft, whether or not facilities are 
provided for the shelter, surfacing, or repair of aircraft, or 
for receiving or discharging passengers or cargo, and all 
appurtenant areas used or suitable for airport buildings or 
other airport facilities, including facilities described in 
section 2, subdivision 6, and all appurtenant rights of way, 
whether heretofore or hereafter established.  
    Sec. 21.  Minnesota Statutes 1990, section 360.032, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ACQUISITION.] Every municipality is hereby 
authorized, through its governing body, to acquire property, 
real or personal, for the purpose of establishing, constructing, 
and enlarging airports and other air navigation facilities and 
to acquire, establish, construct, enlarge, improve, maintain, 
equip, operate, and regulate such airports and other air 
navigation facilities and structures and other property 
incidental to their operation, either within or without the 
territorial limits of such municipality and within or without 
this state; to make, prior to any such acquisition, 
investigations, surveys, and plans; to construct, install, and 
maintain airport facilities for the servicing and repair of 
aircraft and facilities authorized under section 2, subdivision 
6, and for the comfort and accommodation of air travelers; and 
to purchase and sell equipment and supplies as an incident to 
the operation of its airport properties.  It may not acquire, or 
take over any airport or other air navigation facility owned or 
controlled by any other municipality of the state without the 
consent of such municipality.  It may use for airport purposes 
any available property that is now or may at any time hereafter 
be owned or controlled by it.  Such air navigation facilities as 
are established on airports shall be supplementary to and 
coordinated in design and operation with those established and 
operated by the federal and state governments.  It may assist 
other municipalities in the construction of approach roads 
leading to any airport or restricted landing area owned or 
controlled by it.  In financing the facilities authorized under 
section 2, subdivision 6, it may borrow from the state or 
otherwise arrange for financing of the facilities and for that 
purpose may exercise any powers vested in a municipality under 
sections 469.152 to 469.165. 
    Sec. 22.  Minnesota Statutes 1990, section 360.038, 
subdivision 4, is amended to read: 
    Subd. 4.  [LEASED PROPERTY.] To lease for a term not 
exceeding 30 years such airports or, other air navigation 
facilities or facilities authorized under section 2, subdivision 
6, or real property acquired or set apart for airport purposes, 
to private parties, any municipal or state government or the 
national government, or any department of either thereof, for 
operation; to lease or assign for a term not exceeding 99 years 
to private parties, any municipal or state government, or the 
national government, or any department of either thereof, for 
operation or use consistent with the purposes of sections 
360.011 to 360.076, space, area, improvements, or equipment on 
such airports; notwithstanding any other provisions in this 
subdivision, to lease ground area for a term not exceeding 99 
years to private persons for the construction of structures 
which in its opinion are essential and necessary to serve 
aircraft, persons and things engaged in or incidental to 
aeronautics, including but not limited to shops, hangars, 
offices, restaurants, hotels, motels, factories, storage space, 
and any and all other structures necessary or essential to and 
consistent with the purposes of sections 360.011 to 360.076, to 
sell any part of such airports, other air navigation facilities, 
or real property to any municipal or state government, or to the 
United States or any department or instrumentality thereof, for 
aeronautical purposes incidental thereto, and to confer the 
privileges of concessions of supplying upon its airports goods, 
commodities, things, services, and facilities; provided that in 
each case in so doing the public is not deprived of its 
rightful, equal, and uniform use thereof. 
    Sec. 23.  Minnesota Statutes 1990, section 473.608, 
subdivision 1, is amended to read: 
    Subdivision 1.  The corporation, subject to the conditions 
and limitations prescribed by law, shall possess all the powers 
as a body corporate necessary and convenient to accomplish the 
objects and perform the duties prescribed by sections 473.601 to 
473.679, including but not limited to those hereinafter 
specified.  These powers, except as limited by section 473.622, 
may be exercised at any place within 35 miles of the city hall 
of either Minneapolis or St. Paul, and in the metropolitan area, 
and in the city of Duluth for the purpose of owning, leasing, 
constructing, equipping, operating, borrowing money from the 
state for, or otherwise arranging for financing the facility 
described in section 2, subdivision 5. 
    A state loan to finance the facility described in section 
2, subdivision 5, must be made on terms and conditions as the 
commissioner of finance, the commissioner of trade and economic 
development, and the commission determine to be appropriate.  
The state loan is not subject to and may not be counted against 
any limitation on the principal amount of revenue bonds or 
general obligation revenue bonds that the commission may issue 
under sections 473.601 to 473.679.  
     Sec. 24.  [CITY OF DULUTH; TAX INCREMENT FINANCING DISTRICT 
WITH CITY FUNDS PLEDGE.] 
    Subdivision 1.  [AUTHORIZATION.] The city of Duluth may 
create a tax increment financing district, as provided in this 
subdivision, on property located at the Duluth international 
airport.  Except as provided otherwise in this section, the 
provisions of Minnesota Statutes, sections 469.174 to 469.179, 
shall apply to the district.  The district shall consist of 
parcels on which the facility described in section 2, 
subdivision 5, is proposed to be located.  The city or any of 
its authorities or agencies listed in Minnesota Statutes, 
section 469.174, subdivision 2, may be the "authority" for 
purposes of Minnesota Statutes, sections 469.174 to 469.179.  
     The governing body of the city of Duluth may irrevocably 
pledge to the payment or security for the payment of principal 
and interest on bonds issued for the project described in 
section 2, subdivision 5, any money payable to or held in any of 
the funds specified in section 54(a) of the Duluth city charter. 
    The authority or agency being utilized for this tax 
increment financing district shall be expanded by two members.  
The additional two members shall be elected county commissioners 
from the city of Duluth and appointed by the St. Louis county 
board for terms as designated by the county board.  
    Subd. 2.  [CHARACTERISTICS OF THE DISTRICT.] (a) The 
district shall be a redevelopment district as defined in 
Minnesota Statutes, section 469.174, subdivision 10, except that 
the durational limit under Minnesota Statutes, section 469.176, 
subdivision 1, paragraph (e), shall be extended to 30 years.  
    (b) Notwithstanding Minnesota Statutes, section 469.176, 
subdivision 4j, the revenue derived from tax increments from 
this district and money in any of the funds specified in section 
54(a) of the Duluth City Charter that are pledged by the 
governing body of the city of Duluth for this purpose must be 
used to pay debt service on the obligations or debt issued under 
section 4 to finance any portion of the facilities described in 
section 2, subdivision 5, in a principal amount not to exceed 
$47,600,000.  If the revenues derived from tax increment and the 
maximum amount of the other pledged revenues exceed the minimum 
amount the bond indenture requires to be deposited in the debt 
service fund, including any reserve, the excess either must be 
used (1) to defease the bonds, or (2) to reduce pro rata the 
amount of other pledged revenues and tax increments required to 
be deposited in the debt service fund.  Tax increments not 
required to be deposited in the debt service fund are excess tax 
increments and must be distributed as provided in section 
469.176, subdivision 2, paragraph (a), clause (4). 
    (c) Administrative expenses of the district may be paid out 
of the proceeds of the bonds as the commissioner of finance 
determines appropriate and are appropriated for that purpose. 
    (d) The provisions of Minnesota Statutes, section 273.1399, 
do not apply to the district.  
    Sec. 25.  [CITY OF HIBBING; TAX INCREMENT FINANCING 
DISTRICT.] 
    Subdivision 1.  [AUTHORIZATION.] (a) The city of Hibbing 
may create a tax increment financing district, as provided in 
this subdivision, on property located in the city of Hibbing.  
Except as provided otherwise in this section, the provisions of 
Minnesota Statutes, sections 469.174 to 469.179, shall apply to 
the district.  With the consent of St. Louis county, the 
district shall consist of parcels on which the facility 
described in section 2, subdivision 6, is proposed to be located 
and any other adjoining areas into which expansion of the 
facility or development caused by the facility may be expected 
to occur.  The city or any of its authorities or agencies listed 
in Minnesota Statutes, section 469.174, subdivision 2, may be 
the "authority" for purposes of Minnesota Statutes, sections 
469.174 to 469.179.  
     (b) By resolution of the governing bodies of St. Louis 
county and the city of Chisholm and without an election, either 
or both St. Louis county and the city of Chisholm may treat an 
obligation, or any portion thereof, of the city of Hibbing 
issued under Minnesota Statutes, section 469.178, subdivision 2, 
as a general obligation of St. Louis county or the city of 
Chisholm, by unconditionally and irrevocably pledging their full 
faith and credit and taxing power.  Except for Minnesota 
Statutes, sections 475.61 and 475.64, the pledge is not subject 
to Minnesota Statutes, chapter 475.  The obligations, the pledge 
of St. Louis county, and the pledge of the city of Chisholm are 
not subject to and shall not be taken into account for purposes 
of any debt limitation.  A levy of taxes for the obligations is 
not subject to and shall not be taken into account for purposes 
of any levy limitations.  The obligations may be sold at public 
or private sale. 
    The authority or agency being utilized for this tax 
increment financing district, shall be expanded by two members.  
The additional two members shall be elected county commissioners 
from the taconite tax relief area as defined in Minnesota 
Statutes, section 273.134, and appointed by the St. Louis county 
board for terms as designated by the county board. 
    Subd. 2.  [CHARACTERISTICS OF THE DISTRICT.] (a) The 
district shall be a redevelopment district as defined in 
Minnesota Statutes, section 469.174, subdivision 10, except that 
the durational limit under Minnesota Statutes, section 469.176, 
subdivision 1, paragraph (e), shall be extended to 30 years.  
    (b) Notwithstanding Minnesota Statutes, section 469.176, 
subdivision 4j, the revenue derived from tax increments from 
this district, and the proceeds of obligations secured by or 
payable from the tax increments, after reduction for costs of 
issuance, reserves, and capitalized interest, must be used to 
finance, pay, or secure debt service on obligations issued to 
finance any portion of the facilities described in section 2, 
subdivision 6. 
    (c) Administrative expenses of the district may be paid out 
of the proceeds of the bonds issued under section 4 as the 
commissioner of finance determines appropriate and are 
appropriated for that purpose. 
    (d) The provisions of Minnesota Statutes, section 273.1399, 
do not apply to the district. 
    Sec. 26.  [PURPOSE.] 
    The purpose of sections 1 to 25 is to promote the public 
welfare, national security, and efficient, safe, and economical 
air navigation, commerce, and facilities in or for the benefit 
of the state; to foster long-term economic growth and job 
creation by financing an aircraft maintenance facility and an 
aircraft engine repair facility, to encourage and facilitate the 
retention, safe and efficient operation, and expansion of 
airports and other air navigation facilities, airline 
corporations' facilities, operations and services in the state; 
to prevent the loss of jobs, and encourage and promote the 
creation of additional jobs in the state in the airline industry 
and in other businesses in the state served or affected by the 
airline industry; to promote the continued growth, and reduce 
the potential for and effects of a decline of economic activity 
in the state; and to ensure the preservation, growth, and 
diversification of the tax base of the state.  State guaranteed 
bonds are authorized to be issued and the proceeds of their sale 
are appropriated under the authority of the Minnesota 
Constitution, article XI, section 5, clauses (a), (d), or (g) 
and the proceeds must be applied in a manner consistent with 
this authority.  In authorizing the financing of the aircraft 
facilities, the legislature is acting in all respects for the 
benefit of the people of the state of Minnesota to serve the 
public purpose of fostering economic development within the 
state. 
    Sec. 27.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
    Section 2, subdivision 4, paragraph (b), is effective on 
the day after compliance with Minnesota Statutes, section 
645.021, subdivision 3, by the governing body of St. Louis 
county.  Section 2, subdivision 4, paragraph (c), is effective 
on the day after compliance by the governing body of the city of 
Duluth with Minnesota Statutes, section 645.021, subdivision 3. 
Sections 1 to 16 are effective the day following final enactment 
and shall apply to bonds issued to finance a project or projects 
for which an agreement was entered into before March 31, 1992, 
and to refunding bonds.  Section 18 is effective for taxable 
years beginning after December 31, 1991.  

                                ARTICLE 2

                    METROPOLITAN AIRPORTS COMMISSION
    Section 1.  Minnesota Statutes 1990, section 473.667, 
subdivision 8a, is amended to read: 
    Subd. 8a.  [REFUNDING BONDS.] The commission may issue 
general obligation revenue refunding bonds to refund bonds 
issued pursuant to subdivision 2 this section in accordance with 
section 475.67, subdivisions 1 to 11.  
    Sec. 2.  [473.6021] [PUBLIC NECESSITY AND PURPOSE FOR 
ISSUANCE OF BONDS.] 
    In order to accomplish the public purposes set forth in 
section 473.602; to encourage and facilitate the retention and 
expansion of airline corporations' facilities, operations, and 
services in the metropolitan area and the state; to prevent the 
loss of jobs and encourage and promote the creation of 
additional jobs in the state in the airline industry and in 
other businesses in the state served or affected by the airline 
industry; to promote the continued growth, and reduce the 
potential for and effects of a decline of economic activity in 
the metropolitan area and the state; and to ensure the 
preservation, growth, and diversification of the tax base of the 
metropolitan area and the state; it is necessary and appropriate 
and in the public interest to authorize the commission to take 
the actions described in section 473.667, subdivision 11, and 
section 3. 
    Sec. 3.  Minnesota Statutes 1990, section 473.667, is 
amended by adding a subdivision to read: 
    Subd. 11.  [ADDITIONAL BONDS.] (a) The commission may issue 
general obligation revenue bonds under this section for the 
purposes of: 
    (1) acquiring by purchase real and personal properties 
located within the metropolitan area that are related to airline 
operations to be leased to airline corporations, or to other 
corporations affiliated by common ownership with airline 
corporations, for use in connection with their airline 
operations, including real and personal properties for use as 
flight training facilities; and 
    (2) financing or refinancing real and personal properties 
owned by the commission which may include discharging a 
leasehold interest on the properties to be leased to airline 
corporations and used in connection with the operations of the 
airline corporations at airports under the commission's 
jurisdiction. 
    Prior to the issuance of the general obligation revenue 
bonds, the commission shall enter into a lease with the airline 
corporations, or with other corporations affiliated by common 
ownership with airline corporations, for the use of the acquired 
real and personal properties referenced in clause (1), and shall 
enter into a revenue agreement with the airline corporation for 
the use of the properties financed or refinanced referenced in 
clause (2).  The commission shall seek to obtain the best 
available terms and security for the lease and agreement.  The 
terms and security must be reasonably determined by the 
commission to be adequate and of the kind and degree which would 
be required by an investment banking or other financial 
institution.  All such properties are airport facilities for 
purposes of complying with the provisions of subdivisions 3 and 
5. 
     (b) In addition to the covenants and agreements otherwise 
required or negotiated by the commission, the leases and revenue 
agreements for the properties must contain covenants and 
agreements by the airline corporation, and if the user is not 
the airline corporation, also by the airline corporation, 
satisfactory to the commission providing for: 
    (1) the payment of rents in amounts and at times adequate 
to pay the principal and interest as due on the general 
obligation revenue bonds issued to acquire, finance, or 
refinance the properties and to pay the commission's costs and 
expenses of issuing the bonds and acquiring and owning the 
properties, and otherwise satisfying the requirements of section 
469.155, subdivision 5; 
    (2) the adequate security for payment of rents so that the 
net unencumbered value of the leased property described in 
paragraph (a), clause (1), and other collateral pledged to the 
commission from time to time by the airline corporation, as 
independently appraised at the time of issuance and periodically 
to the satisfaction of the commission during the term of the 
general obligation revenue bonds, is a percentage of the 
principal amount of the outstanding general obligation revenue 
bonds under this subdivision as determined by the commission; 
provided that the percentage determined by the commission must 
not be less than 125 percent; 
    (3) the retention and location of operations and 
facilities, including headquarters, of the airline corporation 
in the metropolitan area and the state for the term of the lease 
and aircraft noise abatement; and 
    (4) early repayment, or the establishment of a defeasance 
account to provide for timely repayment, of the general 
obligation revenue bonds upon the occurrence of events and upon 
terms and conditions as are satisfactory to the commission, 
together with financial requirements and covenants satisfactory 
to the commission. 
    (c) The purchase price of the acquired properties described 
in paragraph (a), clause (1), must be in an amount equivalent to 
a percentage of its then fair market value as determined by the 
commission; provided that the percentage shall not exceed 85 
percent.  The portion of the general obligation revenue bonds 
attributable to the financing or refinancing of the property 
described in paragraph (a), clause (2), must be in an amount 
equivalent to a percentage of its then fair market value as 
determined by the commission; provided that the percentage shall 
not exceed 85 percent.  The principal amount of the general 
obligation revenue bonds issued under this subdivision is 
limited to $270,000,000 in excess of the amount authorized by 
subdivision 2; provided that the sum of the original principal 
amounts of the general obligation revenue bonds issued under 
this subdivision, and the revenue bonds issued under section 4, 
shall not exceed $390,000,000.  Before the commission may issue 
the general obligation revenue bonds described in this 
subdivision, the commission shall have received, in form and 
substance satisfactory to the commission, reports described in 
section 4, subdivision 3, relating to the general obligation 
revenue bonds. 
     (d) In addition to other purposes authorized by law, the 
proceeds of the general obligation revenue bonds may be used to 
fund a debt service reserve account or other reserve account. 
    Sec. 4.  [473.6671] [REVENUE BONDS.] 
    Subdivision 1.  [AUTHORIZATION.] (a) The commission may 
issue revenue bonds for the purpose of: 
    (1) acquiring by purchase real and personal properties 
located within the metropolitan area that are related to airline 
operations to be leased to airline corporations, or to other 
corporations affiliated by common ownership with airline 
corporations, for use in connection with their airline 
operations, including real and personal properties for use as 
flight training facilities; and 
    (2) financing or refinancing real and personal properties 
owned by the commission to be leased to airline corporations and 
used in connection with the operations of the airline 
corporations at airports under the commission's jurisdiction. 
    Prior to the issuance of the revenue bonds, the commission 
shall enter into a lease with the airline corporations, or with 
other corporations affiliated by common ownership with airline 
corporations, for the use of such acquired real and personal 
properties referenced in clause (1), and shall enter into a 
revenue agreement with the airline corporation for the use of 
the properties financed or refinanced referenced in clause (2).  
The commission shall seek to obtain the best available terms and 
security for the lease and agreement.  The terms and security 
must be reasonably determined by the commission to be adequate 
and of the kind and degree which would be required by an 
investment banking or other financial institution. 
     (b) In addition to the covenants and agreements otherwise 
required or negotiated by the commission, the leases and revenue 
agreements for the properties must contain covenants and 
agreements by the airline corporation, and if the user is not 
the airline corporation, also by the airline corporation, 
satisfactory to the commission providing for: 
    (1) the payment of rents in amounts and at times adequate 
to pay the principal and interest as due on the revenue bonds 
issued to acquire, finance, or refinance the properties and to 
pay the commission's costs and expenses of issuing the bonds and 
acquiring and owning the properties, and otherwise satisfying 
the requirements of section 469.155, subdivision 5; 
    (2) the retention and location of operations and 
facilities, including headquarters, of the airline corporation 
in the metropolitan area and the state for the term of the 
lease; 
     (3) aircraft noise abatement; and 
    (4) early repayment, or the establishment of a defeasance 
account to provide for timely repayment, of the general 
obligation revenue bonds upon the occurrence of events and upon 
terms and conditions as are satisfactory to the commission, 
together with financial requirements and covenants satisfactory 
to the commission. 
    (c) The sum of the original principal amounts of the 
revenue bonds issued under this subdivision, and the general 
obligation revenue bonds issued under section 473.667, 
subdivision 11, shall not exceed $390,000,000.  Except as 
provided in this section, the revenue bonds must be issued in 
the manner and are subject to the requirements of chapter 475.  
Compliance with the requirements of section 475.60 is at the 
discretion of the commission.  For purposes of this subdivision, 
the commission may exercise any powers vested in a redevelopment 
agency under sections 469.152 to 469.165. 
    Subd. 2.  [SECURITY AND SOURCE OF PAYMENT.] The revenue 
bonds described in subdivision 1 are payable solely from and 
secured by the revenues derived by the commission from the 
leases upon the properties described in subdivision 1, paragraph 
(a), clause (1), the revenue agreements upon the properties 
described in subdivision 1, paragraph (a), clause (2), and other 
revenues as the commission may designate and pledge which are 
derived from the ownership and operation of its airports, air 
navigation facilities and other facilities; provided that the 
pledge and application of all revenues to the payment and 
security of the revenue bonds are subject and subordinate to the 
first and prior charge thereon for the payment and security of 
the commission's general obligation revenue bonds as provided in 
section 473.667.  The revenue bonds shall not be payable from or 
charged upon any funds or assets of the commission other than 
the commission revenues expressly pledged to their payment.  An 
owner of the revenue bonds may not compel any exercise of the 
taxing power of the commission, the state, or any other taxing 
jurisdiction.  Each bond must state in substance the limited 
nature of the obligations.  The revenue bonds may be further 
secured by an assignment of leases with respect to the 
properties acquired, financed, or refinanced by the revenue 
bonds, and (i) with respect to the properties described in 
subdivision 1, paragraph (a), clause (1), by a mortgage and 
security agreement upon the properties and by other collateral 
as is pledged to secure the obligations of the airline 
corporation or other lessee under the leases on the properties, 
and (ii) with respect to the properties described in subdivision 
1, paragraph (a), clause (2), by other collateral as is pledged 
to secure the obligations of the airline corporation under the 
revenue agreements.  Any deed granted or received by the 
commission and any mortgage granted by the commission in 
connection with the issuance of the revenue bonds is exempt from 
deed tax and mortgage registry tax imposed under chapter 287.  
In the resolution, trust indenture, or other instrument 
providing for the issuance of the revenue bonds, the commission 
may provide for or require the creation of accounts from sources 
specified by the commission for the payment and security of the 
revenue bonds, including a debt service reserve account, 
separate from the accounts maintained for payment of the general 
obligation revenue bonds.  The sources specified by the 
commission may include a portion of the proceeds of revenue 
bonds or payment by the airline corporation.  The leases 
described in subdivision 1, paragraph (a), clause (1), and the 
revenue agreements described in subdivision 1, paragraph (a), 
clause (2), must provide that if the commission determines to 
pledge any of its revenues to secure the revenue bonds, 
including revenues deposited into a debt service reserve account 
for the revenue bonds, the airline corporation concurrently 
shall pledge assets to the commission as security for repayment 
of the pledged revenues so that the net unencumbered values of 
the pledged assets, as independently appraised at the time of 
issuance and periodically to the satisfaction of the commission 
during the term of the revenue bonds, is a percentage of the 
amount of commission revenues so pledged as determined by the 
commission; provided that the percentage shall not be less than 
125 percent. 
    Subd. 3.  [DUE DILIGENCE CONDITIONS.] (a) Before the 
commission may issue the revenue bonds described in subdivision 
1, the commission must receive, in form and substance 
satisfactory to the commission: 
    (1) a report of audit of the commission's financial records 
for the fiscal year most recently ended or, if this is not yet 
available, a report for the preceding year, prepared by a 
nationally recognized firm of certified public accountants, 
showing that the net revenues received that year, computed as 
the gross receipts less any refunds of rates, fees, charges, and 
rentals for airport and air navigation facilities and service, 
and less the aggregate amount of current expenses, paid or 
accrued, of operation and maintenance of property and carrying 
on the commission's business and activities, equaled or exceeded 
the maximum amount of then outstanding bonds of the commission 
and interest thereon to become due in any future fiscal year; 
    (2) a written report, prepared by an independent, 
nationally recognized consultant on airport management and 
financing engaged by the commission, on the financial condition 
of the airline corporation, and any corporations selected by the 
commission and affiliated with the corporation by common 
ownership, projecting available revenues of the airline 
corporation at least sufficient during each year of the term of 
the proposed revenue bonds to pay when due all financial 
obligations of the airline corporation under the revenue 
agreements and leases described in subdivision 1 and stating the 
factors on which the projection is based; and 
     (3) a written report prepared by a nationally recognized 
consultant on airport management and financing, projecting 
available revenues of the commission at least sufficient during 
each year of the term of the proposed revenue bonds to pay all 
principal and interest when due on the revenue bonds, and 
stating the estimates of air traffic, rate increases, inflation, 
and other factors on which the projection is based. 
    (b) Business plans, financial statements, customer lists, 
and market and feasibility studies provided to the consultant or 
the commission by the airline company or a related company under 
paragraph (a) of this subdivision, are nonpublic data as defined 
in section 13.02, subdivision 9. 
    Sec. 5.  Minnesota Statutes 1990, section 473.667, is 
amended by adding a subdivision to read: 
    Subd. 12.  [BONDS FOR HEAVY MAINTENANCE FACILITY.] (a) The 
commission may issue general obligation revenue bonds under this 
section for the purpose of acquisition and betterment of a heavy 
maintenance facility for aircraft to be located at 
Minneapolis-St. Paul International Airport.  The heavy 
maintenance facility must be owned by the commission and leased 
to and operated by airline corporations, for use by airline 
corporations in connection with their airline operations.  The 
principal amount of the general obligation revenue bonds issued 
under this subdivision is limited to $230,000,000 in excess of 
the amount authorized by subdivision 2. 
    (b) To reduce the risk that commission money, including a 
property tax levy, will be needed to pay debt service on the 
general obligation revenue bonds, the commission must require 
that the financing arrangements include a coverage test 
satisfactory to the commission, so that the sum of the value of 
the assets and other security pledged to the payment of the 
general obligation revenue bonds or the rent due under any lease 
of the facility and taken into account by the commission is no 
less than 125 percent of the difference between the outstanding 
general obligation revenue bonds and any cash collateral held in 
a debt service reserve fund and pledged to the payment of 
principal and interest for the general obligation revenue bonds 
and no other bonds.  Assets and other security that may be taken 
into account include (1) the net unencumbered value of the 
facility and any collateral or third party guaranty, including a 
letter of credit, pledged or otherwise furnished by a user of 
the facility or by a benefited airline company as security for 
the payment of rent, (2) the general obligation revenue bond 
proceeds, including earnings thereon, and (3) prepayments of 
rent, after making such adjustments the commission determines to 
be appropriate to take into account any outstanding bonds 
secured by a lien on the facility or rent that is prior to the 
lien thereon that is securing the general obligation revenue 
bonds, but excluding any cash collateral deducted from the 
outstanding general obligation revenue bonds in applying the 
coverage test.  The commission may adopt the method of valuing 
the assets and other security it determines to be appropriate, 
including valuation of the facility as its original cost less 
depreciation.  Cash collateral means cash or securities issued 
or unconditionally guaranteed as to payment of principal and 
interest by the United States of America and maturing or 
callable at the option of the holder within two years. 
    (c) In addition to other purposes authorized by law, the 
proceeds of the general obligation revenue bonds may be used to 
fund a debt service reserve account or other reserve account. 
    (d) For purposes of this subdivision, the commission may 
exercise any powers vested in a redevelopment agency under 
sections 469.152 to 469.165.  Any deed granted or received by 
the commission and any mortgage granted by the commission in 
connection with the issuance of the general obligation revenue 
bonds is exempt from deed tax and mortgage registry tax imposed 
under chapter 287.  The lease must contain covenants and 
agreements by the airline corporation and any successor in 
interest providing for:  (1) the retention and location of 
existing employees, operations, and facilities, including 
headquarters, of the airline corporation in the state until the 
principal and interest on the last series of bonds are paid; and 
(2) aircraft noise abatement. 
     Sec. 6.  [473.680] [TAX INCREMENT FINANCING DISTRICT FOR 
HEAVY MAINTENANCE FACILITY.] 
    Subdivision 1.  [AUTHORIZATION.] The commission may create 
a tax increment financing district as provided in this 
subdivision on property located at the Minneapolis-St. Paul 
International Airport.  Except as otherwise provided in this 
section, the provisions of sections 469.174 to 469.179 apply to 
the district.  The district shall consist of parcels on which 
the heavy maintenance facility described in section 473.667, 
subdivision 12, is proposed to be located.  The commission is 
the "authority" for purposes of sections 469.174 to 469.179. 
    Subd. 2.  [CHARACTERISTICS OF THE DISTRICT.] (a) The 
district shall be an economic development district as defined in 
section 469.174, subdivision 12. 
    (b) Notwithstanding section 469.176, subdivision 4c, the 
revenue derived from tax increment from the district must be 
used only to pay debt service on general obligation revenue 
bonds issued by the commission under section 473.667, 
subdivision 12. 
    Sec. 7.  [EFFECTIVE DATES; APPLICATION.] 
    Sections 1 to 6 are effective the day following final 
enactment and shall apply to bonds issued to finance or 
refinance a facility or facilities or property for which an 
agreement was entered into before March 31, 1992, or to bonds 
issued to refund the bonds.  This article applies in the 
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and 
Washington. 

                                ARTICLE 3

                     INTERGOVERNMENTAL COORDINATION
    Section 1.  [INTERAGENCY TASK FORCE.] 
    Subdivision 1.  [PURPOSE.] There is established an 
interagency task force to coordinate the financial transactions 
authorized by this act, including bonds, financial assistance, 
and loan, lease, and other revenue agreements.  The task force 
consists of the commissioners of finance, trade and economic 
development, and revenue and the chair of the metropolitan 
airports commission.  The mayors of the cities of Duluth and 
Hibbing and the chair of the St. Louis county board and the 
commissioner of the iron range resources and rehabilitation 
board are members of the task force for purposes of financial 
transactions related to projects described in article 1, section 
2, subdivisions 5 and 6.  The commissioner of finance is the 
chair of the task force.  To complete its work, the task force 
shall use staff and consultant services made available by the 
governmental units and agencies represented on the task force. 
    Subd. 2.  [DUTIES.] The task force shall coordinate the 
negotiation of financial transactions under this act by the 
governmental agencies and units represented on the task force.  
The task force shall advise and make recommendations to the 
responsible public agencies and units on the following matters: 
    (1) the financial assistance to be provided; 
    (2) financial commitments by state, metropolitan, and local 
agencies, including any arrangements related to state, 
metropolitan, and local debt, taxes, financing, and debt 
service; 
    (3) loan, lease, or other revenue agreements; 
    (4) the financial commitments of lessees of projects 
financed or refinanced with financial assistance under this act, 
and any related persons, and the estimates of business and 
financial conditions, economic activity, air traffic, and other 
factors that have been used in assessing the capability of the 
lessees and any related persons to meet their financial 
commitments. 
    Sec. 2.  [STATE AND METROPOLITAN BONDS; REVIEW AND 
APPROVAL.] 
    The metropolitan airports commission may not issue bonds 
authorized by this act without the approval of the commissioner 
of finance and the legislative commission on planning and fiscal 
policy, provided that the provisions of article 1, section 15, 
specifically apply to this approval requirement.  Before the 
commissioner of finance issues bonds authorized by this act, the 
commissioner shall report the amount of bonds to be issued, a 
detailed description of the projects and facilities to be 
financed by the bonds, and the terms of the lease, loan, and 
revenue agreements to the legislative commission on planning and 
fiscal policy for its advisory recommendation.  The 
recommendation is positive if not received by the commission or 
commissioner within ten days. 
    Presented to the governor May 28, 1991 
    Signed by the governor May 30, 1991, 12:52 p.m.