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

                            CHAPTER 214-S.F.No. 2208 
                  An act relating to public finance; updating and making 
                  technical changes to public finance and related 
                  provisions related to county and county-supported 
                  hospitals, municipally owned nursing homes, lake 
                  improvement districts, and the metropolitan council; 
                  extending a sunset date for certain county capital 
                  improvement bonds and limiting the inclusiveness of 
                  capital improvements; removing election requirements 
                  as preconditions for issuance of certain obligations; 
                  requiring reverse referenda in certain cases; 
                  clarifying the effect of a state guaranty as not 
                  creating constitutional public debt of the state; 
                  authorizing some flexibility in stating certain ballot 
                  questions; authorizing Scott and Carver counties to 
                  grant certain economic development powers to their 
                  housing and redevelopment authorities; authorizing the 
                  Chisago Lakes joint sewage treatment commission to 
                  issue bonds; authorizing expanded funding by the 
                  county for certain multijurisdictional program 
                  activities in Hennepin county; authorizing Hassan 
                  township to create and empower an economic development 
                  authority; updating and changing the Minnesota Bond 
                  Allocation Act; amending Minnesota Statutes 2000, 
                  sections 103B.555, by adding a subdivision; 165.10, 
                  subdivision 2; 275.60; 373.45, subdivision 3; 376.06, 
                  subdivision 1; 376.07; 376.08, subdivisions 1, 2; 
                  376.09; 383B.79, by adding a subdivision; 429.091, 
                  subdivision 7a; 473.39, by adding a subdivision; 
                  474A.02, subdivisions 8, 13a, 22a, 22b, 23a; 474A.03, 
                  subdivisions 1, 2a, 4; 474A.04, subdivisions 1a, 5; 
                  474A.045; 474A.047, subdivisions 1, 2; 474A.061, 
                  subdivisions 1, 2a, 2b, 2c, 4; 474A.091, subdivisions 
                  2, 3, 4, 5, 6, by adding a subdivision; 474A.131, 
                  subdivisions 1, 2, by adding a subdivision; 474A.14; 
                  475.54, subdivision 1; 475.58, subdivision 1; 475.59; 
                  amending Laws 1974, chapter 473; Laws 1980, chapter 
                  482; proposing coding for new law in Minnesota 
                  Statutes, chapters 474A; repealing Minnesota Statutes 
                  2000, sections 373.40, subdivision 7; 376.03; 
                  474A.061, subdivision 6. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 103B.555, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [DISTRICT OBLIGATIONS.] The district, with 
        approval of the county board or joint county authority, 
        expressed in a resolution identifying each specific improvement 
        to which the approval applies, may exercise the powers of a city 
        under chapter 429 and section 444.075, including, but not 
        limited to: 
           (1) the levy of special assessments; 
           (2) the imposition of rates and charges; and 
           (3) the issuance of bonds 
        to finance improvements that the district may undertake. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 2.  Minnesota Statutes 2000, section 165.10, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BONDS ISSUED, SOLD, AND RETIRED.] Such bonds 
        shall be general obligations of the county and issued, sold, and 
        retired in the manner provided in chapter 475.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 3.  Minnesota Statutes 2000, section 275.60, is 
        amended to read: 
           275.60 [LEVY OR BOND REFERENDUM; BALLOT NOTICE.] 
           (a) Notwithstanding any general or special law or any 
        charter provisions, but subject to section 126C.17, subdivision 
        9, any question submitted to the voters by any local 
        governmental subdivision at a general or special election after 
        June 8, 1995, authorizing a property tax levy or tax rate 
        increase, including the issuance of debt obligations payable in 
        whole or in part from property taxes, must include on the ballot 
        the following notice in boldface type.:  
           "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING 
           FOR A PROPERTY TAX INCREASE." 
           (b) For purposes of this section and section 275.61, "local 
        governmental subdivision" includes counties, home rule and 
        statutory cities, towns, school districts, and all special 
        taxing districts.  This statement is in addition to any general 
        or special laws or any charter provisions that govern the 
        contents of a ballot question and, in the case of a question on 
        the issuance of debt obligations, may be supplemented by a 
        description of revenues pledged to payment of the obligations 
        that are intended as the primary source of payment. 
           (c) This section does not apply to a school district bond 
        election if the debt service payments are to be made entirely 
        from transfers of revenue from the capital fund to the debt 
        service fund. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 4.  Minnesota Statutes 2000, section 373.45, 
        subdivision 3, is amended to read: 
           Subd. 3.  [AGREEMENT.] (a) In order For specified debt 
        obligations of a county to be covered by the provisions of this 
        section, the county must enter an agreement with the authority 
        obligating the county to be bound by the provisions of this 
        section.  
           (b) This agreement must be in a form prescribed by the 
        authority and contain any provisions required by the authority, 
        including, at least, an obligation to: 
           (1) deposit with the paying agent three days before the 
        date on which the payment is due an amount sufficient to make 
        that payment; 
           (2) notify the authority, if the county will be unable to 
        make all or a portion of the payment; and 
           (3) include a provision in the bond resolution and county's 
        agreement with the paying agent for the debt obligation that 
        requires the paying agent to inform the commissioner if it 
        becomes aware of a default or potential default in the payment 
        of principal or interest on that issue or if, on the day two 
        business days before the date a payment is due on that issue, 
        there are insufficient funds to make the payment on deposit with 
        the paying agent.  
           (c) Funds invested in a refunding escrow account 
        established under section 475.67 that are to become available to 
        the paying agent on a principal or interest payment date are 
        deemed to be on deposit with the paying agent three business 
        days before the payment date.  
           (b) (d) The provisions of an agreement under this 
        subdivision are binding as to an issue as long as any debt 
        obligation of the issue remains outstanding. 
           (c) (e) This section is a contract with bondholders and may 
        not be amended or repealed for the covered bonds so long as the 
        covered bonds are outstanding and the obligations of the state 
        under this section are not a public debt of the state under 
        article XI, section 4, of the Minnesota Constitution, and the 
        legislature may, at any time, choose not to appropriate amounts 
        under subdivision 4, paragraph (b). 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 5.  Minnesota Statutes 2000, section 376.06, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROCEDURE, POWERS, PAY, ELECTION.] A 
        county board which has purchased and constructed buildings for 
        hospital purposes may operate these buildings as a hospital and 
        may appoint a superintendent.  The board shall set the 
        superintendent's salary, term of employment, and powers and 
        duties; provide for the management and operation of the 
        hospital; and operate, control, and manage the hospital.  The 
        superintendent shall serve at the pleasure of the board.  If the 
        board determines that it is in the public interest, it may 
        appoint a hospital board of at least three, but not more than 
        nine members, who must be county residents and landowners, to 
        serve may include some or all of the county commissioners except 
        as otherwise provided in subdivision 2.  Persons appointed to 
        the hospital board must reside in the hospital's service area 
        and 80 percent of the board members, including any commissioners 
        appointed to serve on the hospital board, must be residents of 
        the county.  The hospital board serves without compensation 
        unless the county board authorizes the payment of compensation 
        and reimbursement of expenses for service on the hospital 
        board.  Notwithstanding section 375.44, if compensation and 
        reimbursement are authorized, they shall be the same as 
        authorized for service on the local social services agency.  
        Subject to its supervision, the county board may commit the 
        care, management, and operation of the hospital to the hospital 
        board.  The county board may provide for the organization and 
        regulation of the hospital board, its duties and the duties of 
        the members, and regulations for the management, operation, and 
        control of the hospital.  The county board may lease the 
        hospital grounds and buildings to a hospital association 
        nonprofit or governmental hospital organization for terms it 
        considers advisable.  Sections 376.01 to 376.06 do not permit 
        any county board to purchase and construct any hospital 
        buildings or to pay for them without first submitting the 
        question to the vote of the people.  No purchase or construction 
        of buildings or payment may be made unless a majority of the 
        electors voting upon the proposition vote in favor.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 6.  Minnesota Statutes 2000, section 376.07, is 
        amended to read: 
           376.07 [ADDITION TO COUNTY HOSPITAL.] 
           When the county board of a county has been authorized by 
        the voters to construct an addition to the county hospital of 
        the county under sections 376.01 to 376.06, whether or not also 
        authorized to equip the addition, and the board has determined 
        that the addition, whether with or without equipment, cannot be 
        completed within the cost authorized, or has determined that, to 
        complete the improvement, certain alterations should be made, or 
        fixtures or equipment added, either in the original building, or 
        in the addition, or both, the board may be authorized to spend a 
        specified additional amount for any of the purposes mentioned in 
        this chapter, either by vote of the people of the county at a 
        general or special election or by petition.  If an election is 
        held, the proposition shall be submitted and disposed of in the 
        same manner as provided by sections 376.01 to 376.06.  If by 
        petition, the petition must be signed by a majority of those 
        voting at the last preceding general election.  The petition may 
        be in the form of one document or of several documents in the 
        same form, and shall be filed with the county auditor.  A 
        special election may be called in the manner provided for 
        calling special county elections.  When authority is granted by 
        the voters, in either manner provided, the board may proceed 
        accordingly.  If the board made or attempted to make a contract 
        or contracts for more than the authority first granted, it may 
        ratify and carry out the contracts.  The county board, hospital 
        board, or board of directors of a nonprofit or governmental 
        hospital organization that has leased a county hospital may 
        authorize the remodeling, improvement, alteration, or 
        construction of an addition to the county hospital or of another 
        building on the county hospital's existing premises by a 
        majority vote of the board.  Financing for any project under 
        this section is governed by other law, including sections 373.40 
        and 447.45 and chapter 475.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 7.  Minnesota Statutes 2000, section 376.08, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPROPRIATIONS.] Except as provided in 
        subdivision 2, the board of county commissioners in any county 
        with a population of 50,000 or less may appropriate up to 
        $65,000 annually from the general revenue fund of the county for 
        the acquisition of lands for hospital purposes, and the 
        construction, improvement, alterations, equipment and 
        maintenance of hospitals within the county, including public or 
        nonprofit hospitals that are not county hospitals.  The board 
        may also appropriate up to $25,000 from the general revenue fund 
        of the county for the acquisition of land and construction of 
        municipally owned nursing homes within the county.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 8.  Minnesota Statutes 2000, section 376.08, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REMODELING OR ADDITIONS.] A county hospital may 
        by majority vote of its board of commissioners, or if the 
        hospital has been leased to another entity under section 376.06, 
        subdivision 1, or 447.47, by majority vote of the board of 
        directors of that entity, enter into projects for the 
        construction of an addition or remodeling to its presently 
        existing facility or the acquisition of equipment as described 
        in this subdivision without complying with the dollar limitation 
        of subdivision 1 or the election requirements of section 
        376.03.  This subdivision applies only to projects in which the 
        funds for the project are derived from dedicated, restricted, or 
        other designated accounts or, from the hospital's depreciation 
        fund and do not require incurring debt by the county through, or 
        from the issuance of bonds or otherwise authorized under other 
        law.  An addition to a current hospital under this subdivision 
        may include construction of buildings physically separate from 
        the present hospital building, as well as additions to the 
        present building, if the new buildings are constructed on the 
        hospital's existing premises. 
           This subdivision does not affect the ability of the 
        hospital board to approve funds for improvements or remodeling 
        of a hospital facility under other law. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 9.  Minnesota Statutes 2000, section 376.09, is 
        amended to read: 
           376.09 [AID TO HOSPITALS IN COUNTIES HAVING NO COUNTY 
        HOSPITAL.] 
           In any county in which there is no county hospital, or a 
        county hospital is leased to a nonprofit or governmental 
        hospital organization pursuant to section 376.06, subdivision 1, 
        or 447.47, the county board may appropriate and pay money from 
        the general fund of the county, for the construction, 
        maintenance, and operation of a private, nonprofit, or public 
        hospital in the county for the treatment of sick, diseased, and 
        injured persons.  Admission preference shall always be given to 
        patients who are, in whole or in part, public charges, and are 
        sent to the hospital by the county board. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 10.  Minnesota Statutes 2000, section 383B.79, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [FINANCING.] Hennepin county may appropriate 
        funds for any of the activities described in subdivision 1, 
        whether or not state funds are appropriated for the activity.  
        Hennepin county may include any part of the costs of a project 
        described in section 469.002, subdivision 12, in a capital 
        improvement plan adopted under section 373.40, and may issue 
        bonds for such purposes pursuant to and subject to the 
        procedures and limitations set forth in section 373.40, whether 
        or not the capital improvement to be financed is to be owned by 
        the county or any other governmental entity.  Such purposes are 
        in addition to the capital improvements described in section 
        373.40, but shall not include light rail transit, commuter rail, 
        or any activity related to either of those, or a sports facility 
        building designed or used primarily for professional sports.  No 
        funds appropriated under this subdivision may be used to pay 
        operating expenses. 
           Sec. 11.  Minnesota Statutes 2000, section 429.091, 
        subdivision 7a, is amended to read: 
           Subd. 7a.  [REVOLVING FUND BONDS.] The council may by 
        resolution establish a revolving fund for the payment of the 
        costs of any improvement or any waterworks systems, sewer 
        systems, or storm sewer systems described in section 444.075, 
        the costs of facilities to maintain streets and water, sewer, 
        and storm sewer systems and for the payment of any obligations 
        issued to pay the costs thereof of the facilities and systems 
        referred to in this subdivision or to refund obligations issued 
        for those purposes.  The council may create within the revolving 
        fund a separate construction account into which the municipality 
        may deposit the proceeds of any obligations payable from the 
        fund, the proceeds of any special assessments collected with 
        respect to any improvement, any net revenues of a waterworks, 
        sewer system, or storm sewer system described in section 444.075 
        or any other available funds of the municipality appropriated to 
        it.  Amounts on deposit in the construction account may be used 
        to pay the costs of any improvement or any waterworks, sewer 
        system, or storm sewer system described in section 444.075 or 
        any street or water, sewer, or storm sewer maintenance 
        facilities.  No funds may be expended for an improvement unless 
        at least 20 percent of the costs of each such improvement is to 
        be assessed against benefited property.  No funds may be 
        expended for a waterworks, sewer system, or storm sewer system, 
        other than a sewer system described in section 115.46, or 
        maintenance facilities unless the council estimates that the 
        costs will be recovered from the net revenues of the system or 
        any combined waterworks, sewer systems, or storm sewer systems 
        operated by the municipality.  The council may also create a 
        separate debt service account within the revolving fund for the 
        payment of principal of and interest on any obligations payable 
        therefrom.  Notwithstanding subdivision 4, the council is not 
        required to pledge any particular assessments or other revenues 
        to the payment of the obligations.  Collections of special 
        assessments or net revenues may be deposited in either the 
        construction account or the debt service account as the council 
        or an officer designated by the council may determine, having 
        due regard for anticipated collections of special assessments 
        and net revenues from improvements or waterworks, sewer systems, 
        or storm sewer systems financed in whole or in part from the 
        construction account, and taxes levied for the payment of the 
        obligations.  The council may issue obligations that are payable 
        primarily from the debt service account for the purpose of 
        providing funds to defray in whole or in part any expenses 
        incurred or estimated to be incurred in making the improvement 
        or improvements or in constructing the waterworks, sewer system, 
        or storm sewer system, including every item of cost of the kinds 
        authorized by section 475.65, and street and water, sewer, and 
        storm sewer maintenance facilities or to refund obligations 
        previously issued under this section or section 115.46 or 
        444.075.  The obligations may be general obligations to which 
        the full faith and credit of the municipality are pledged.  If 
        the special assessments to be levied and net revenues estimated 
        to be available for their payment are estimated to be at least 
        20 percent of the principal amount of the obligations, the 
        obligations may be issued without an election and shall not be 
        included in determining the net indebtedness of the municipality 
        under the provisions of any law limiting net indebtedness.  The 
        cost of a maintenance facility that may be financed under this 
        subdivision is limited only to the portion of the facility that 
        is fairly allocable to the maintenance of streets and water, 
        sewer, and storm sewer systems. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 12.  Minnesota Statutes 2000, section 473.39, is 
        amended by adding a subdivision to read: 
           Subd. 1h.  [OBLIGATIONS.] After July 1, 2001, in addition 
        to the authority in subdivisions 1a, 1b, 1c, 1d, 1e, and 1g, the 
        council may issue certificates of indebtedness, bonds, or other 
        obligations under this section in an amount not exceeding 
        $45,000,000 for capital expenditures as prescribed in the 
        council's regional transit master plan and transit capital 
        improvement program and for related costs, including the costs 
        of issuance and sale of the obligations, but not for computer 
        software, or for construction, maintenance, or operation of 
        light rail transit or commuter rail. 
           [EFFECTIVE DATE; APPLICATION.] This section is effective 
        the day following final enactment and applies in the counties of 
        Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 
           Sec. 13.  Minnesota Statutes 2000, section 474A.02, 
        subdivision 8, is amended to read: 
           Subd. 8.  [FEDERAL TAX LAW.] "Federal tax law" means those 
        provisions of the Internal Revenue Code of 1986, as 
        amended through December 31, 1990, that limit the aggregate 
        amount of obligations of a specified type or types which may be 
        issued by an issuer during a calendar year whose interest is 
        excluded from gross income for purposes of federal income 
        taxation. 
           Sec. 14.  Minnesota Statutes 2000, section 474A.02, 
        subdivision 13a, is amended to read: 
           Subd. 13a.  [SMALL ISSUE POOL.] "Small issue pool" means 
        the amount of the annual volume cap allocated under section 
        474A.061, that is available for the issuance of enterprise zone 
        facility bonds authorized under Public Law Number 103-66, 
        section 13301, small issue bonds to finance manufacturing 
        projects, and the agricultural development bond beginning farmer 
        and agricultural business enterprise loan program authorized in 
        sections 41C.01 to 41C.13, and student loan bonds issued by the 
        Minnesota higher education services office. 
           Sec. 15.  Minnesota Statutes 2000, section 474A.02, 
        subdivision 22a, is amended to read: 
           Subd. 22a.  [PUBLIC FACILITIES POOL.] "Public facilities 
        pool" means the amount of the annual volume cap allocated under 
        section 474A.061, which is available for the issuance of public 
        facility bonds or student loan bonds. 
           Sec. 16.  Minnesota Statutes 2000, section 474A.02, 
        subdivision 22b, is amended to read: 
           Subd. 22b.  [PUBLIC FACILITIES PROJECT.] "Public facilities 
        project" means any publicly owned facility, or facility owned by 
        a nonprofit organization that is used for district heating or 
        cooling, that is eligible to be financed with the proceeds of 
        public facilities bonds as defined under section 474A.02, 
        subdivision 23a. 
           Sec. 17.  Minnesota Statutes 2000, section 474A.02, 
        subdivision 23a, is amended to read: 
           Subd. 23a.  [QUALIFIED BONDS.] "Qualified bonds" means the 
        specific type or types of obligations that are subject to the 
        annual volume cap.  Qualified bonds include the following types 
        of obligations as defined in federal tax law: 
           (a) "public facility bonds" means "exempt facility bonds" 
        as defined in federal tax law, except for residential rental 
        project bonds, which are those obligations issued to finance 
        airports, docks and wharves, mass commuting facilities, 
        facilities for the furnishing of water, sewage facilities, solid 
        waste disposal facilities, facilities for the local furnishing 
        of electric energy or gas, local district heating or cooling 
        facilities, and qualified hazardous waste facilities.  New bonds 
        and other obligations are ineligible to receive state 
        allocations or entitlement authority for public facility 
        projects under this section if they have been issued:  
           (1) for the purpose of refinancing, refunding, or otherwise 
        defeasing existing debt; and 
           (2) more than one calendar year prior to the date of 
        application; 
           (b) "residential rental project bonds" which are those 
        obligations issued to finance qualified residential rental 
        projects; 
           (c) "mortgage bonds"; 
           (d) "small issue bonds" issued to finance manufacturing 
        projects and the acquisition or improvement of agricultural real 
        or personal property under sections 41C.01 to 41C.13; 
           (e) "student loan bonds" issued by or on behalf of the 
        Minnesota higher education services office; 
           (f) "redevelopment bonds"; 
           (g) "governmental bonds" with a nonqualified amount in 
        excess of $15,000,000 as set forth in section 141(b)5 of federal 
        tax law; and 
           (h) "enterprise zone facility bonds" issued to finance 
        facilities located within empowerment zones or enterprise 
        communities, as authorized under Public Law Number 103-66, 
        section 13301. 
           Sec. 18.  Minnesota Statutes 2000, section 474A.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [UNDER FEDERAL TAX LAW; ALLOCATIONS.] At 
        the beginning of each calendar year after December 31, 1997 
        2001, the commissioner shall determine the aggregate dollar 
        amount of the annual volume cap under federal tax law for the 
        calendar year, and of this amount the commissioner shall make 
        the following allocation:  
           (1) $63,000,000 $74,530,000 to the small issue pool; 
           (2) $59,000,000 $122,060,000 to the housing pool, 
        $37,000,000 of which 31 percent of the adjusted allocation is 
        reserved until the day after the first last Monday in February 
        July for single-family housing programs; 
           (3) $10,500,000 $12,750,000 to the public facilities pool; 
        and 
           (4) amounts to be allocated as provided in subdivision 2a.  
           If the annual volume cap is greater or less than the amount 
        of bonding authority allocated under clauses (1) to (4) and 
        subdivision 2a, paragraph (a), clauses (1) to (4), the 
        allocation must be adjusted so that each adjusted allocation is 
        the same percentage of the annual volume cap as each original 
        allocation is of the total bonding authority originally 
        allocated. 
           Sec. 19.  Minnesota Statutes 2000, section 474A.03, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [ENTITLEMENT ISSUER ALLOCATION.] (a) The 
        commissioner shall make the following allocation to the 
        Minnesota housing finance agency and the following cities and 
        county:  
           (1) $53,750,000 $84,940,000 per year to the Minnesota 
        housing finance agency, less any amount received in the previous 
        year under section 474A.091, subdivision 6; 
           (2) $21,000,000 $33,190,000 per year to the city of 
        Minneapolis; 
           (3) $15,750,000 $24,890,000 per year to the city of Saint 
        Paul; and 
           (4) $10,500,000 $16,600,000 per year to the Dakota county 
        community development agency for the county of Dakota and all 
        political subdivisions located within the county. 
           (b) Entitlement allocations provided under this subdivision 
        must be used for mortgage bonds, mortgage credit certificates, 
        public facility bonds, or residential rental project bonds, 
        except that entitlement issuers may also use their allocations 
        for public facility bonds, and may carry forward their 
        allocations for any qualified bond as defined under section 
        474A.02, subdivision 23a. 
           (c) Data on the home purchase price amount, mortgage 
        amount, income, household size, and race of the households 
        served with the proceeds of mortgage revenue bonds and mortgage 
        credit certificates in the previous year must be submitted by 
        each entitlement issuer to the Minnesota housing finance agency 
        by December 31 of each year.  Compliance by the Minnesota 
        housing finance agency with the provisions of section 462A.073, 
        subdivision 5, shall be deemed compliance with the reporting 
        requirements of this subdivision. 
           Sec. 20.  Minnesota Statutes 2000, section 474A.03, 
        subdivision 4, is amended to read: 
           Subd. 4.  [APPLICATION FEE.] Every entitlement issuer and 
        other issuer shall pay to the commissioner a nonrefundable 
        application fee to offset the state cost of program 
        administration.  The application fee is $20 for each $100,000 of 
        entitlement or allocation requested, with the request rounded to 
        the nearest $100,000.  The minimum fee is $20.  Fees received by 
        the commissioner must be credited to the general fund.  
        Application fees for projects of entitlement issuers must be 
        submitted to the commissioner with the notice of issuance of 
        bonds, notice of use of mortgage credit certificates, and notice 
        of carry forward.  Each entitlement issuer must pay its 
        application fee in full for that calendar year to the 
        commissioner no later than when the first notice of issuance of 
        bonds, notice of use of mortgage credit certificates, or notice 
        of carry forward is submitted to the commissioner by that issuer.
           Sec. 21.  Minnesota Statutes 2000, section 474A.04, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [ENTITLEMENT RESERVATIONS; CARRYFORWARD; 
        DEDUCTION.] Any amount returned by an entitlement issuer before 
        July 15 shall be reallocated through the housing pool.  Any 
        amount returned on or after July 15 shall be reallocated through 
        the unified pool.  An amount returned after the last Monday in 
        November shall be reallocated to the Minnesota housing finance 
        agency.  Any amount of bonding authority that an entitlement 
        issuer carries forward under federal tax law that is not 
        permanently issued or for which the governing body of the 
        entitlement issuer has not enacted a resolution electing to use 
        the authority for mortgage credit certificates by July 15 and 
        has not provided a notice of issue to the commissioner before 
        4:30 p.m. on the last business day in December of the succeeding 
        calendar year shall be deducted from the entitlement allocation 
        for that entitlement issuer for the current calendar year.  Any 
        amount deducted from an entitlement issuer's allocation under 
        this subdivision shall be reallocated through the unified pool.  
        An entitlement issuer must permanently issue all carryforward 
        authority or enact a resolution electing to use all carryforward 
        authority for mortgage credit certificates prior to issuing any 
        current year authority of that entitlement issuer in the next 
        succeeding calendar year.  Any amount deducted from an 
        entitlement issuer's allocation under this subdivision shall be 
        reallocated to other entitlement issuers, the housing pool, the 
        small issue pool, and the public facilities pool on a 
        proportional basis consistent with section 474A.03. 
           Sec. 22.  Minnesota Statutes 2000, section 474A.04, 
        subdivision 5, is amended to read: 
           Subd. 5.  [NOTICE OF ENTITLEMENT ALLOCATION.] As soon as 
        possible in each calendar year, the commissioner shall provide 
        to each entitlement issuer a written notice of the amount of its 
        post on the department's Web site the amount of each entitlement 
        allocation.  
           Sec. 23.  Minnesota Statutes 2000, section 474A.045, is 
        amended to read: 
           474A.045 [SCORING SYSTEM FOR ENTERPRISE ZONE FACILITY 
        PROJECTS AND MANUFACTURING PROJECTS.] 
           The following criteria must be used in determining the 
        allocation of enterprise zone facility bonds and small issue 
        bonds for manufacturing projects.  The issuer must prepare and 
        submit to the commissioner a public purpose scoring worksheet 
        that presents the data and methods used in determining the total 
        score under this section.  The total score is the sum of the 
        following: 
           (1) the number of direct new jobs in the state generated by 
        the proposed project for the next two years per $100,000 of 
        proposed allocation multiplied by 15; 
           (2) the number of direct existing jobs in the state 
        multiplied by .625 due to the proposed project for the next two 
        years per $100,000 of proposed allocation multiplied by 15; 
           (3) the average hourly wage paid to employees by the 
        proposed project for the next two years, exclusive of benefits 
        mandated by law, based on the following scale: 
        Wages paid per hour             $ 8    $10    $12    $15 
        Non-Metro area points awarded    10     15     20     20 
        Seven-County Metro Area 
        points awarded                    0     10     15     20 
           For purposes of this section, the seven-county metropolitan 
        area includes Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, 
        and Washington counties; 
           (4) the quotient of the estimated total net increase in 
        property taxes generated in the state by the project in the 
        first full year of operation divided by the proposed bond 
        allocation, multiplied by 500; and 
           (5) the seasonally unadjusted unemployment rate in the 
        community where the proposed project is located measured as a 
        percent of the state's unemployment rate, multiplied by ten. 
           The community seasonally unadjusted unemployment rate used 
        in determining the points under clause (5) must be the most 
        recent rate for the city or county in which the proposed project 
        is located, as provided by the commissioner of economic security.
           (6) 20 points for projects that locate in an incorporated 
        area or a planned urban growth area as defined by section 
        462.352, subdivision 18; 
           (7) 20 points for brownfield projects located in a state or 
        federal Superfund site, a voluntary investigation and cleanup 
        site, or a brownfield site, all as defined by the Minnesota 
        pollution control agency; and 
           (8) 20 points for projects with favorable environmental 
        citizenship as evidenced by no nonforgivable or combination 
        administrative penalty orders, stipulation agreements, consent 
        decrees, or other enforcement orders containing a monetary 
        penalty by the Minnesota pollution control agency over the past 
        three years or pending at the time of application. 
           Sec. 24.  Minnesota Statutes 2000, section 474A.047, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBILITY.] (a) An issuer may only use 
        the proceeds from residential rental bonds if the proposed 
        project meets one of the following requirements: 
           (1) the proposed project is a single room occupancy project 
        and all the units of the project will be occupied by individuals 
        whose incomes at the time of their initial residency in the 
        project are 50 percent or less of the greater of the statewide 
        or county median income adjusted for household size as 
        determined by the federal Department of Housing and Urban 
        Development; 
           (2) the proposed project is a multifamily project where at 
        least 75 percent of the units have two or more bedrooms and at 
        least one-third of the 75 percent have three or more bedrooms; 
        or 
           (3) the proposed project is a multifamily project that 
        meets the following requirements: 
           (i) the proposed project is the rehabilitation of an 
        existing building which meets the requirements for minimum 
        rehabilitation expenditures in sections 42(e)(2) and 42(e)(3)(A) 
        of the Internal Revenue Code; 
           (ii) the proposed project involves participation by the 
        Minnesota housing finance agency or a local unit of government 
        in the financing of the acquisition or rehabilitation of the 
        project.  For purposes of this subdivision, "participation" 
        means an activity other than the issuance of the bonds; and 
           (iii) the proposed project must be occupied by individuals 
        or families whose incomes at the time of their initial residency 
        in the project meet the requirements of section 42(g) of the 
        Internal Revenue Code. 
           (1) the proposed residential rental project meets the 
        requirements of section 142(d) of the Internal Revenue Code 
        regarding the incomes of the occupants of the housing; and 
           (2) the maximum rent for at least 20 percent of the units 
        in the proposed residential rental project do not exceed the 
        area fair market rent or exception fair market rents for 
        existing housing, if applicable, as established by the federal 
        Department of Housing and Urban Development. 
           (b) The maximum rent for a proposed single room occupancy 
        unit under paragraph (a), clause (1), is 30 percent of the 
        amount equal to 30 percent of the greater of the statewide or 
        county median income for a one-member household as determined by 
        the federal Department of Housing and Urban Development.  The 
        maximum rent for at least 75 percent of the units of a 
        multifamily project under paragraph (a), clause (2), is 30 
        percent of the amount equal to 50 percent of the greater of the 
        statewide or county median income as determined by the federal 
        Department of Housing and Urban Development based on a household 
        size with 1.5 persons per bedroom. 
           (c) The proceeds from residential rental bonds may be used 
        for a project for which project-based federal rental assistance 
        payments are made only if: 
           (1) the owner of the project enters into a binding 
        agreement with the Minnesota housing finance agency under which 
        the owner is obligated to extend any existing low-income 
        affordability restrictions and any contract or agreement for 
        rental assistance payments for the maximum term permitted, 
        including any renewals thereof; and 
           (2) the Minnesota housing finance agency certifies that 
        project reserves will be maintained at closing of the bond issue 
        and budgeted in future years at the lesser of: 
           (i) the level described in Minnesota Rules, part 4900.0010, 
        subpart 7, item A, subitem (2), effective May 1, 1997; or 
           (ii) the level of project reserves available prior to the 
        bond issue, provided that additional money is available to 
        accomplish repairs and replacements needed at the time of bond 
        issue. 
           Sec. 25.  Minnesota Statutes 2000, section 474A.047, 
        subdivision 2, is amended to read: 
           Subd. 2.  [15-YEAR AGREEMENT.] Prior to the issuance of 
        residential rental bonds, the developer of the project for which 
        the bond proceeds will be used must enter into a 15-year 
        agreement with the issuer that specifies the maximum rental 
        rates of the rent-restricted units in the project and the income 
        levels of the residents of the project occupying 
        income-restricted units.  The Such rental rates and income 
        levels must be within the limitations established under 
        subdivision 1.  The developer must annually certify to the 
        issuer over the term of the agreement that the rental rates for 
        the rent-restricted units are within the limitations under 
        subdivision 1.  The issuer may request individual certification 
        of the income of all residents of the project income-restricted 
        units.  The commissioner may request from the issuer a copy of 
        the annual certification prepared by the developer.  The 
        commissioner may require the issuer to request individual 
        certification of all residents of the project income-restricted 
        units. 
           Sec. 26.  Minnesota Statutes 2000, section 474A.061, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICATION.] (a) An issuer may apply for 
        an allocation under this section by submitting to the department 
        an application on forms provided by the department, accompanied 
        by (1) a preliminary resolution, (2) a statement of bond counsel 
        that the proposed issue of obligations requires an allocation 
        under this chapter and the Internal Revenue Code, (3) the type 
        of qualified bonds to be issued, (4) an application deposit in 
        the amount of one percent of the requested allocation before the 
        last Monday in July, or in the amount of two percent of the 
        requested allocation on or after the last Monday in July, (5) a 
        public purpose scoring worksheet for manufacturing project and 
        enterprise zone facility project applications, and (6) for 
        residential rental projects, a statement from the applicant or 
        bond counsel as to whether the project preserves existing 
        federally subsidized housing for residential rental project 
        applications and whether the project is restricted to persons 
        who are 55 years of age or older.  The issuer must pay the 
        application deposit by a check made payable to the department of 
        finance.  The Minnesota housing finance agency, the Minnesota 
        rural finance authority, and the Minnesota higher education 
        services office may apply for and receive an allocation under 
        this section without submitting an application deposit. 
           (b) An entitlement issuer may not apply for an allocation 
        from the housing pool or from the public facilities pool unless 
        it has either permanently issued bonds equal to the amount of 
        its entitlement allocation for the current year plus any amount 
        of bonding authority carried forward from previous years or 
        returned for reallocation all of its unused entitlement 
        allocation.  For purposes of this subdivision, its entitlement 
        allocation includes an amount obtained under section 474A.04, 
        subdivision 6.  This paragraph does not apply to an application 
        from the Minnesota housing finance agency for an allocation 
        under subdivision 2a for cities who choose to have the agency 
        issue bonds on their behalf.  
           (c) If an application is rejected under this section, the 
        commissioner must notify the applicant and return the 
        application deposit to the applicant within 30 days unless the 
        applicant requests in writing that the application be 
        resubmitted.  The granting of an allocation of bonding authority 
        under this section must be evidenced by a certificate of 
        allocation. 
           Sec. 27.  Minnesota Statutes 2000, section 474A.061, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [HOUSING POOL ALLOCATION.] (a) On the first 
        business day that falls on a Monday of the calendar year and the 
        first Monday in February Commencing on the second Tuesday in 
        January and continuing on each Monday through July 15, the 
        commissioner shall allocate available bonding authority in from 
        the housing pool to applications received by on or before the 
        Monday of the previous preceding week for residential rental 
        projects that are not restricted to persons who are 55 years of 
        age or older and that meet the eligibility criteria under 
        section 474A.047, except that allocations may be made to 
        projects that are restricted to persons who are 55 years of age 
        or older, if the project preserves existing federally subsidized 
        housing.  Projects that preserve existing federally subsidized 
        housing shall be allocated available bonding authority in the 
        housing pool for residential rental projects prior to the 
        allocation of available bonding authority to other eligible 
        residential rental projects.  Allocations of available bonding 
        authority from the housing pool for eligible residential rental 
        projects shall be awarded in the following order of priority:  
        (1) projects that preserve existing federally subsidized 
        housing; (2) projects that are not restricted to persons who are 
        55 years of age or older; and (3) other residential rental 
        projects.  Prior to May 15, no allocation shall be made to a 
        project restricted to persons who are 55 years of age or older.  
        If an issuer that receives an allocation under this paragraph 
        does not issue obligations equal to all or a portion of the 
        allocation received within 120 days of the allocation or returns 
        the allocation to the commissioner, the amount of the allocation 
        is canceled and returned for reallocation through the housing 
        pool or to the unified pool after July 15. 
           (b) After February January 1, and through February January 
        15, the Minnesota housing finance agency may accept applications 
        from cities for single-family housing programs which meet 
        program requirements as follows:  
           (1) the housing program must meet a locally identified 
        housing need and be economically viable; 
           (2) the adjusted income of home buyers may not exceed 80 
        percent of the greater of statewide or area median income as 
        published by the Department of Housing and Urban Development, 
        adjusted for household size; 
           (3) house price limits may not exceed the federal price 
        limits established for mortgage revenue bond programs.  Data on 
        the home purchase price amount, mortgage amount, income, 
        household size, and race of the households served in the 
        previous year's single-family housing program, if any, must be 
        included in each application; and 
           (4) for applicants who choose to have the agency issue 
        bonds on their behalf, an application fee pursuant to section 
        474A.03, subdivision 4, and an application deposit equal to one 
        percent of the requested allocation must be submitted to the 
        Minnesota housing finance agency before the agency forwards the 
        list specifying the amounts allocated to the commissioner under 
        paragraph (c) (d).  The agency shall submit the city's 
        application fee and application deposit to the commissioner when 
        requesting an allocation from the housing pool. 
           Applications by a consortium shall include the name of each 
        member of the consortium and the amount of allocation requested 
        by each member. 
           The Minnesota housing finance agency may accept 
        applications from June 15 through June 30 from cities for 
        single-family housing programs which meet program requirements 
        specified under clauses (1) to (4) if bonding authority is 
        available in the housing pool.  Applications will be accepted 
        from June 15 to June 30 only from cities that received an 
        allotment in the same calendar year and used at least 75 percent 
        of their allotment by June 1. 
           (c) Any amounts remaining in the housing pool after July 15 
        are available for single-family housing programs for cities that 
        applied in January and received an allocation under this section 
        in the same calendar year.  For a city that chooses to issue 
        bonds on its own behalf or pursuant to a joint powers agreement, 
        the agency must allot available bonding authority based on the 
        formula in paragraphs (d) and (f).  Allocations will be made 
        loan by loan, on a first come, first served basis 
        among applicant cities on whose behalf the Minnesota housing 
        finance agency issues bonds.  The agency must allot available 
        bonding authority.  
           Any city that received an allocation pursuant to paragraph 
        (f) in the same calendar year that wishes to issue bonds on its 
        own behalf or pursuant to a joint powers agreement for an amount 
        becoming available for single-family housing programs after July 
        15 shall notify the Minnesota housing finance agency by July 
        15.  The Minnesota housing finance agency shall notify each city 
        making a request of the amount of its allocation within three 
        business days after July 15.  The city must comply with 
        paragraph (f).  
           For purposes of paragraphs (a) to (g) (h), "city" means a 
        county or a consortium of local government units that agree 
        through a joint powers agreement to apply together for 
        single-family housing programs, and has the meaning given it in 
        section 462C.02, subdivision 6.  "Agency" means the Minnesota 
        housing finance agency.  
           (c) (d) The total amount of allocation for mortgage bonds 
        for one city is limited to the lesser of:  (i) the amount 
        requested, or (ii) the product of the total amount available for 
        mortgage bonds from the housing pool, multiplied by the ratio of 
        each applicant's population as determined by the most recent 
        estimate of the city's population released by the state 
        demographer's office to the total of all the applicants' 
        population, except that each applicant shall be allocated a 
        minimum of $100,000 regardless of the amount requested or the 
        amount determined under the formula in clause (ii).  If a city 
        applying for an allocation is located within a county that has 
        also applied for an allocation, the city's population will be 
        deducted from the county's population in calculating the amount 
        of allocations under this paragraph. 
           Upon determining the amount of each applicant's allocation, 
        the agency shall forward to the commissioner a list specifying 
        the amounts allotted to each application and application deposit 
        checks to the commissioner with all application fees and 
        deposits from applicants who choose to have the agency issue 
        bonds on their behalf. 
           Total allocations from the housing pool for single-family 
        housing programs may not exceed 31 percent of the adjusted 
        allocation to the housing pool until after July 15. 
           (d) (e) The agency may issue bonds on behalf of 
        participating cities.  The agency shall request an allocation 
        from the commissioner for all applicants who choose to have the 
        agency issue bonds on their behalf and the commissioner shall 
        allocate the requested amount to the agency.  The agency may 
        request an allocation at any time after the first Monday second 
        Tuesday in February January and through the last Monday in July, 
        but may request an allocation no later than the last Monday in 
        July.  After awarding an allocation and receiving a notice of 
        issuance for the mortgage bonds issued on behalf of the 
        participating cities, the commissioner shall transfer the 
        application deposits to the Minnesota housing finance agency to 
        be returned to the participating cities.  The commissioner 
        Minnesota housing finance agency shall return any application 
        deposit to a city that paid an application deposit under 
        paragraph (b), clause (4), but was not part of the list 
        forwarded to the commissioner under paragraph (c) (d).  
           (e) (f) A city may choose to issue bonds on its own behalf 
        or through a joint powers agreement or may use bonding authority 
        for mortgage credit certificates and may request an allocation 
        from the commissioner by forwarding an application with an 
        application fee pursuant to section 474A.03, subdivision 4, and 
        a one percent application deposit to the commissioner no later 
        than the Monday of the week preceding an allocation.  If the 
        total amount requested by all applicants exceeds the amount 
        available in the pool, the city may not receive a greater 
        allocation than the amount it would have received under the list 
        forwarded by the Minnesota housing finance agency to the 
        commissioner.  No city may request or receive an allocation from 
        the commissioner until the list under paragraph (c) (d) has been 
        forwarded to the commissioner.  A city must request an 
        allocation from the commissioner no later than 14 days before 
        the unified pool is created pursuant to section 474A.091, 
        subdivision 1 the last Monday in July.  On and after the first 
        Monday in February and through the last Monday in July, No city 
        may receive an allocation from the housing pool for mortgage 
        bonds which has not first applied to the Minnesota housing 
        finance agency.  The commissioner shall allocate the requested 
        amount to the city or cities subject to the limitations under 
        this paragraph.  
           If a city issues mortgage bonds from an allocation received 
        under this paragraph, the issuer must provide for the recycling 
        of funds into new loans.  If the issuer is not able to provide 
        for recycling, the issuer must notify the commissioner in 
        writing of the reason that recycling was not possible and the 
        reason the issuer elected not to have the Minnesota housing 
        finance agency issue the bonds.  "Recycling" means the use of 
        money generated from the repayment and prepayment of loans for 
        further eligible loans or for the redemption of bonds and the 
        issuance of current refunding bonds. 
           (f) (g) No entitlement city or county or city in an 
        entitlement county may apply for or be allocated authority to 
        issue mortgage bonds or use mortgage credit certificates from 
        the housing pool.  No city in an entitlement county may apply 
        for or be allocated authority to issue residential rental bonds 
        from the housing pool or the unified pool. 
           (g) (h) A city that does not use at least 50 percent of its 
        allotment by the date applications are due for the first 
        allocation that is made from the housing pool for single-family 
        housing programs in the immediately succeeding calendar year may 
        not apply to the housing pool for a single-family mortgage bond 
        or mortgage credit certificate program allocation that exceeds 
        the amount of its allotment for the preceding year that was used 
        by the city in the immediately preceding year or receive an 
        allotment from the housing pool in the succeeding calendar year 
        that exceeds the amount of its allotment for the preceding year 
        that was used in the preceding year.  The minimum allotment is 
        $100,000 for an allocation made prior to July 15, regardless of 
        the amount used in the preceding calendar year, except that a 
        city whose allocation in the preceding year was the minimum 
        amount of $100,000 and who did not use at least 50 percent of 
        its allocation from the preceding year is ineligible for an 
        allocation in the immediate succeeding calendar year.  Each 
        local government unit in a consortium must meet the requirements 
        of this paragraph. 
           Sec. 28.  Minnesota Statutes 2000, section 474A.061, 
        subdivision 2b, is amended to read: 
           Subd. 2b.  [SMALL ISSUE POOL ALLOCATION.] On the first 
        Monday in January that is a business day through the last Monday 
        in July Commencing on the second Tuesday in January and 
        continuing on each Monday through the last Monday in July, the 
        commissioner shall allocate available bonding authority from the 
        small issue pool on Monday of each week to applications received 
        on or before the Monday of the preceding week for manufacturing 
        projects and enterprise zone facility projects.  From the first 
        Monday in January that is a business day second Tuesday in 
        January through the last Monday in July, the commissioner shall 
        reserve $5,000,000 of the available bonding authority from the 
        small issue pool for applications for agricultural development 
        bond loan projects of the Minnesota rural finance authority.  
           Beginning in calendar year 2002, on the second Tuesday in 
        January through the last Monday in July, the commissioner shall 
        reserve $10,000,000 of available bonding authority in the small 
        issue pool for applications for student loan bonds of or on 
        behalf of the Minnesota higher education services office.  The 
        total amount of allocations for student loan bonds from the 
        small issue pool may not exceed $10,000,000 per year. 
           The commissioner shall reserve $10,000,000 until the day 
        after the last Monday in February, $10,000,000 until the day 
        after the last Monday in April, and $10,000,000 until the day 
        after the last Monday in June in the small issue pool 
        for enterprise zone facility projects and manufacturing 
        projects.  The amount of allocation provided to an issuer for a 
        specific enterprise zone facility project or manufacturing 
        project will be based on the number of points received for the 
        proposed project under the scoring system under section 
        474A.045.  Proposed projects that receive 50 points or more are 
        eligible for all of the proposed allocation.  Proposed projects 
        that receive less than 50 points are eligible to receive a 
        proportionally reduced share of the proposed authority, based 
        upon the number of points received. 
           If there are two or more applications for manufacturing and 
        enterprise zone facility projects from the small issue pool and 
        there is insufficient bonding authority to provide allocations 
        for all projects in any one week, the available bonding 
        authority shall be awarded based on the number of points awarded 
        a project under section 474A.045, with those projects receiving 
        the greatest number of points receiving allocation first.  If 
        two or more applications receive an equal number of points, 
        available bonding authority shall be awarded by lot unless 
        otherwise agreed to by the respective issuers. 
           Sec. 29.  Minnesota Statutes 2000, section 474A.061, 
        subdivision 2c, is amended to read: 
           Subd. 2c.  [PUBLIC FACILITIES POOL ALLOCATION.] From the 
        beginning of the calendar year and continuing for a period of 
        120 days, the commissioner shall reserve $5,000,000 $3,000,000 
        of the available bonding authority from the public facilities 
        pool for applications for public facilities projects to be 
        financed by the Western Lake Superior Sanitary District.  On the 
        first Monday in January that is a business day through the last 
        Monday in July Commencing on the second Tuesday in January and 
        continuing on each Monday through the last Monday in July, the 
        commissioner shall allocate available bonding authority from the 
        public facilities pool on Monday of each week to applications 
        for eligible public facilities projects received on or before 
        the Monday of the preceding week.  If there are two or more 
        applications for public facilities projects from the pool and 
        there is insufficient available bonding authority to provide 
        allocations for all projects in any one week, the available 
        bonding authority shall be awarded by lot unless otherwise 
        agreed to by the respective issuers. 
           Sec. 30.  Minnesota Statutes 2000, section 474A.061, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RETURN OF ALLOCATION; DEPOSIT REFUND.] (a) If an 
        issuer that receives an allocation under this section determines 
        that it will not issue obligations equal to all or a portion of 
        the allocation received under this section within 120 days of 
        allocation or within the time period permitted by federal tax 
        law, whichever is less, the issuer must notify the department.  
        If the issuer notifies the department or the 120-day period 
        since allocation has expired prior to the last Monday in July, 
        the amount of allocation is canceled and returned for 
        reallocation through the pool from which it was originally 
        allocated.  If the issuer notifies the department or the 120-day 
        period since allocation has expired on or after the last Monday 
        in July, the amount of allocation is canceled and returned for 
        reallocation through the unified pool.  If the issuer notifies 
        the department after the last Monday in November, the amount of 
        allocation is canceled and returned for reallocation to the 
        Minnesota housing finance agency.  To encourage a competitive 
        application process, the commissioner shall reserve, for new 
        applications, the amount of allocation that is canceled and 
        returned for reallocation under this section for a minimum of 
        seven calendar days. 
           (b) An issuer that returns for reallocation all or a 
        portion of an allocation received under this section within 120 
        days of allocation shall receive within 30 days a refund equal 
        to:  
           (1) one-half of the application deposit for the amount of 
        bonding authority returned within 30 days of receiving 
        allocation; 
           (2) one-fourth of the application deposit for the amount of 
        bonding authority returned between 31 and 60 days of receiving 
        allocation; and 
           (3) one-eighth of the application deposit for the amount of 
        bonding authority returned between 61 and 120 days of receiving 
        allocation. 
           (c) No refund shall be available for allocations returned 
        120 or more days after receiving the allocation or beyond the 
        last Monday in November.  This subdivision does not apply to the 
        Minnesota housing finance agency or the Minnesota rural finance 
        authority.  
           Sec. 31.  [474A.062] [HESO 120-DAY ISSUANCE EXEMPTION.] 
           The Minnesota higher education services office is exempt 
        from the 120-day issuance requirements in this chapter and may 
        carry forward allocations for student loan bonds into three 
        successive calendar years, subject to carryforward notice 
        requirements of section 474A.131, subdivision 2.  The maximum 
        cumulative carryforward is limited to $25,000,000. 
           Sec. 32.  Minnesota Statutes 2000, section 474A.091, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPLICATION.] Issuers may apply for an 
        allocation under this section by submitting to the department an 
        application on forms provided by the department accompanied by 
        (1) a preliminary resolution, (2) a statement of bond counsel 
        that the proposed issue of obligations requires an allocation 
        under this chapter and the Internal Revenue Code, (3) the type 
        of qualified bonds to be issued, (4) an application deposit in 
        the amount of two percent of the requested allocation, and (5) a 
        public purpose scoring worksheet for manufacturing and 
        enterprise zone applications, and (6) for residential rental 
        projects, a statement from the applicant or bond counsel as to 
        whether the project preserves existing federally subsidized 
        housing and whether the project is restricted to persons who are 
        55 years of age or older.  The issuer must pay the application 
        deposit by check.  An entitlement issuer may not apply for an 
        allocation for public facility bonds, residential rental project 
        bonds, or mortgage bonds under this section unless it has either 
        permanently issued bonds equal to the amount of its entitlement 
        allocation for the current year plus any amount carried forward 
        from previous years or returned for reallocation all of its 
        unused entitlement allocation.  For purposes of this 
        subdivision, its entitlement allocation includes an amount 
        obtained under section 474A.04, subdivision 6. 
           Notwithstanding the restrictions imposed on entitlement 
        issuers under this subdivision, the Minnesota housing finance 
        agency may not apply for receive an allocation for mortgage 
        bonds under this section until after prior to the last first 
        Monday in August.  Notwithstanding the restrictions imposed on 
        unified pool allocations after September 1 under subdivision 3, 
        paragraph (c)(2), the Minnesota housing finance agency October, 
        but may be awarded allocations for mortgage bonds from the 
        unified pool on or after September 1 the first Monday in 
        October.  The Minnesota housing finance agency, the Minnesota 
        higher education services office, and the Minnesota rural 
        finance authority may apply for and receive an allocation under 
        this section without submitting an application deposit. 
           Sec. 33.  Minnesota Statutes 2000, section 474A.091, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ALLOCATION PROCEDURE.] (a) The commissioner 
        shall allocate available bonding authority under this section on 
        the Monday of every other week beginning with the first Monday 
        in August through and on the last Monday in November.  
        Applications for allocations must be received by the department 
        by 4:30 p.m. on the Monday preceding the Monday on which 
        allocations are to be made.  If a Monday falls on a holiday, the 
        allocation will be made or the applications must be received by 
        the next business day after the holiday.  
           (b) On or before September 1, allocations shall be awarded 
        from the unified pool in the following order of priority: 
           (1) applications for enterprise zone facility bonds; 
           (2) applications for small issue bonds for manufacturing 
        projects; 
           (3) applications for small issue bonds for agricultural 
        development bond loan projects; 
           (4) applications for residential rental project bonds; 
           (5) applications for public facility projects funded by 
        public facility bonds; 
           (6) applications for redevelopment bonds; 
           (7) applications for mortgage bonds; and 
           (8) applications for governmental bonds. 
           Allocations for residential rental projects may only be 
        made during the first allocation in August.  The amount of 
        allocation provided to an issuer for a specific manufacturing 
        project will be based on the number of points received for the 
        proposed project under the scoring system under section 474A.045.
        Proposed manufacturing projects that receive 50 points or more 
        are eligible for all of the proposed allocation.  Proposed 
        manufacturing projects that receive less than 50 points under 
        section 474A.045 are only eligible to receive a proportionally 
        reduced share of the proposed authority, based upon the number 
        of points received.  
           (b) Prior to October 1, only the following applications 
        shall be awarded allocations from the unified pool.  Allocations 
        shall be awarded in the following order of priority: 
           (1) applications for residential rental project bonds; 
           (2) applications for small issue bonds for manufacturing 
        projects; and 
           (3) applications for small issue bonds for agricultural 
        development bond loan projects. 
           (c) On the first Monday in October through the last Monday 
        in November, allocations shall be awarded from the unified pool 
        in the following order of priority: 
           (1) applications for student loan bonds issued by or on 
        behalf of the Minnesota higher education services office; 
           (2) applications for mortgage bonds; 
           (3) applications for public facility projects funded by 
        public facility bonds; 
           (4) applications for small issue bonds for manufacturing 
        projects; 
           (5) applications for small issue bonds for agricultural 
        development bond loan projects; 
           (6) applications for residential rental project bonds; 
           (7) applications for enterprise zone facility bonds; 
           (8) applications for governmental bonds; and 
           (9) applications for redevelopment bonds. 
           (d) If there are two or more applications for manufacturing 
        projects from the unified pool and there is insufficient bonding 
        authority to provide allocations for all manufacturing projects 
        in any one allocation period, the available bonding authority 
        shall be awarded based on the number of points awarded a project 
        under section 474A.045 with those projects receiving the 
        greatest number of points receiving allocation first.  If two or 
        more applications for manufacturing projects receive an equal 
        amount of points, available bonding authority shall be awarded 
        by lot unless otherwise agreed to by the respective issuers. 
           (e) If there are two or more applications for enterprise 
        zone facility projects from the unified pool and there is 
        insufficient bonding authority to provide allocations for all 
        enterprise zone facility projects in any one allocation period, 
        the available bonding authority shall be awarded based on the 
        number of points awarded a project under section 474A.045 with 
        those projects receiving the greatest number of points receiving 
        allocation first.  If two or more applications for enterprise 
        zone facility projects receive an equal amount of points, 
        available bonding authority shall be awarded by lot unless 
        otherwise agreed to by the respective issuers. 
           (f) If there are two or more applications for residential 
        rental projects from the unified pool and there is insufficient 
        bonding authority to provide allocations for all residential 
        rental projects in any one allocation period, the available 
        bonding authority shall be awarded in the following order of 
        priority:  (1) projects that preserve existing federally 
        subsidized housing; (2) projects that are not restricted to 
        persons who are 55 years of age or older; and (3) other 
        residential rental projects. 
           (c)(1) (g) From the first Monday in August through the last 
        Monday in November, $20,000,000 of bonding authority or an 
        amount equal to the total annual amount of bonding authority 
        allocated to the small issue pool under section 474A.03, 
        subdivision 1, less the amount allocated to issuers from the 
        small issue pool for that year, whichever is less, is reserved 
        within the unified pool for small issue bonds to the extent such 
        amounts are available within the unified pool.  On the first 
        Monday in September through the last Monday in November, 
        $2,500,000 of bonding authority or an amount equal to the total 
        annual amount of bonding authority allocated to the public 
        facilities pool under section 474A.03, subdivision 1, less the 
        amount allocated to issuers from the public facilities pool for 
        that year, whichever is less, is reserved within the unified 
        pool for public facility bonds to the extent such amounts are 
        available within the unified pool.  
           (2) (h) The total amount of allocations for mortgage bonds 
        from the housing pool and the unified pool may not exceed: 
           (i) (1) $10,000,000 for any one city; or 
           (ii) (2) $20,000,000 for any number of cities in any one 
        county. 
           An allocation for mortgage bonds may be used for mortgage 
        credit certificates. 
           (d) After September 1, allocations shall be awarded from 
        the unified pool only for the following types of qualified bonds:
        small issue bonds, public facility bonds to finance publicly 
        owned facility projects, residential rental project bonds, and 
        enterprise zone facility bonds. 
           (i) The total amount of allocations for student loan bonds 
        from the unified pool may not exceed $10,000,000 per year. 
           (j) If there is insufficient bonding authority to fund all 
        projects within any qualified bond category other than 
        enterprise zone facility projects, manufacturing projects, and 
        residential rental projects, allocations shall be awarded by lot 
        unless otherwise agreed to by the respective issuers.  
           (k) If an application is rejected, the commissioner must 
        notify the applicant and return the application deposit to the 
        applicant within 30 days unless the applicant requests in 
        writing that the application be resubmitted.  
           (l) The granting of an allocation of bonding authority 
        under this section must be evidenced by issuance of a 
        certificate of allocation. 
           Sec. 34.  Minnesota Statutes 2000, section 474A.091, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [MORTGAGE BONDS.] (a) Bonding authority 
        remaining in the unified pool on October 1 is available for 
        single-family housing programs for cities that applied in 
        January and received an allocation under section 474A.061, 
        subdivision 2a, in the same calendar year.  The Minnesota 
        housing finance agency shall receive an allocation for mortgage 
        bonds pursuant to this section, minus any amounts for a city or 
        consortium that intends to issue bonds on its own behalf under 
        paragraph (c).  
           (b) The agency may issue bonds on behalf of participating 
        cities.  The agency shall request an allocation from the 
        commissioner for all applicants who choose to have the agency 
        issue bonds on their behalf and the commissioner shall allocate 
        the requested amount to the agency.  Allocations shall be 
        awarded by the commissioner each Monday commencing on the first 
        Monday in October through the last Monday in November for 
        applications received by 4:30 p.m. on the Monday of the week 
        preceding an allocation. 
           For cities who choose to have the agency issue bonds on 
        their behalf, allocations will be made loan by loan, on a first 
        come, first served basis among the cities.  The agency shall 
        submit an application fee pursuant to section 474A.03, 
        subdivision 4, and an application deposit equal to two percent 
        of the requested allocation to the commissioner when requesting 
        an allocation from the unified pool.  After awarding an 
        allocation and receiving a notice of issuance for mortgage bonds 
        issued on behalf of the participating cities, the commissioner 
        shall transfer the application deposit to the Minnesota housing 
        finance agency.  
           For purposes of paragraphs (a) to (d), "city" means a 
        county or a consortium of local government units that agree 
        through a joint powers agreement to apply together for 
        single-family housing programs, and has the meaning given it in 
        section 462C.02, subdivision 6.  "Agency" means the Minnesota 
        housing finance agency.  
           (c) Any city that received an allocation pursuant to 
        section 474A.061, subdivision 2a, paragraph (f), in the current 
        year that wishes to receive an additional allocation from the 
        unified pool and issue bonds on its own behalf or pursuant to a 
        joint powers agreement shall notify the Minnesota housing 
        finance agency by the third Monday in September.  The total 
        amount of allocation for mortgage bonds for a city choosing to 
        issue bonds on its own behalf or through a joint powers 
        agreement is limited to the lesser of:  (i) the amount 
        requested, or (ii) the product of the total amount available for 
        mortgage bonds from the unified pool, multiplied by the ratio of 
        the population of each city that applied in January and received 
        an allocation under section 474A.061, subdivision 2a, in the 
        same calendar year, as determined by the most recent estimate of 
        the city's population released by the state demographer's office 
        to the total of the population of all the cities that applied in 
        January and received an allocation under section 474A.061, 
        subdivision 2a, in the same calendar year.  If a city choosing 
        to issue bonds on its own behalf or through a joint powers 
        agreement is located within a county that has also chosen to 
        issue bonds on its own behalf or through a joint powers 
        agreement, the city's population will be deducted from the 
        county's population in calculating the amount of allocations 
        under this paragraph.  
           The Minnesota housing finance agency shall notify each city 
        choosing to issue bonds on its own behalf or pursuant to a joint 
        powers agreement of the amount of its allocation by October 15.  
        Upon determining the amount of the allocation of each choosing 
        to issue bonds on its own behalf or through a joint powers 
        agreement, the agency shall forward a list specifying the 
        amounts allotted to each city. 
           A city that chooses to issue bonds on its own behalf or 
        through a joint powers agreement may request an allocation from 
        the commissioner by forwarding an application with an 
        application fee pursuant to section 474A.03, subdivision 4, and 
        an application deposit equal to two percent of the requested 
        amount to the commissioner no later than 4:30 p.m. on the Monday 
        of the week preceding an allocation.  Allocations to cities that 
        choose to issue bonds on their own behalf shall be awarded by 
        the commissioner on the first Monday after October 15 through 
        the last Monday in November.  No city may receive an allocation 
        from the commissioner after the last Monday in November.  The 
        commissioner shall allocate the requested amount to the city or 
        cities subject to the limitations under this subdivision. 
           If a city issues mortgage bonds from an allocation received 
        under this paragraph, the issuer must provide for the recycling 
        of funds into new loans.  If the issuer is not able to provide 
        for recycling, the issuer must notify the commissioner in 
        writing of the reason that recycling was not possible and the 
        reason the issuer elected not to have the Minnesota housing 
        finance agency issue the bonds.  "Recycling" means the use of 
        money generated from the repayment and prepayment of loans for 
        further eligible loans or for the redemption of bonds and the 
        issuance of current refunding bonds. 
           (d) No entitlement city or county or city in an entitlement 
        county may apply for or be allocated authority to issue mortgage 
        bonds or use mortgage credit certificates from the unified pool. 
           (e) An allocation awarded to the agency for mortgage bonds 
        under this section may be carried forward by the agency into the 
        next succeeding calendar year subject to notice requirements 
        under section 474A.131 and is available until the last business 
        day in December of that succeeding calendar year. 
           Sec. 35.  Minnesota Statutes 2000, section 474A.091, 
        subdivision 4, is amended to read: 
           Subd. 4.  [MORTGAGE BONDS REMAINING BONDING AUTHORITY.] All 
        remaining bonding authority available for allocation under this 
        section on December 1, is allocated to the Minnesota housing 
        finance agency. 
           Sec. 36.  Minnesota Statutes 2000, section 474A.091, 
        subdivision 5, is amended to read: 
           Subd. 5.  [RETURN OF ALLOCATION; DEPOSIT REFUND.] (a) If an 
        issuer that receives an allocation under this section determines 
        that it will not issue obligations equal to all or a portion of 
        the allocation received under this section within 120 days of 
        the allocation or within the time period permitted by federal 
        tax law, whichever is less, the issuer must notify the 
        department.  If the issuer notifies the department or the 
        120-day period since allocation has expired prior to the last 
        Monday in November, the amount of allocation is canceled and 
        returned for reallocation through the unified pool.  If the 
        issuer notifies the department on or after the last Monday in 
        November, the amount of allocation is canceled and returned for 
        reallocation to the Minnesota housing finance agency.  To 
        encourage a competitive application process, the commissioner 
        shall reserve, for new applications, the amount of allocation 
        that is canceled and returned for reallocation under this 
        section for a minimum of seven calendar days. 
           (b) An issuer that returns for reallocation all or a 
        portion of an allocation received under this section within 120 
        days of the allocation shall receive within 30 days a refund 
        equal to:  
           (1) one-half of the application deposit for the amount of 
        bonding authority returned within 30 days of receiving the 
        allocation; 
           (2) one-fourth of the application deposit for the amount of 
        bonding authority returned between 31 and 60 days of receiving 
        the allocation; and 
           (3) one-eighth of the application deposit for the amount of 
        bonding authority returned between 61 and 120 days of receiving 
        the allocation. 
           (c) No refund of the application deposit shall be available 
        for allocations returned on or after the last Monday in November.
        This subdivision does not apply to the Minnesota housing finance 
        agency, or the Minnesota rural finance authority. 
           Sec. 37.  Minnesota Statutes 2000, section 474A.091, 
        subdivision 6, is amended to read: 
           Subd. 6.  [FINAL ALLOCATION; CARRYFORWARD.] Notwithstanding 
        the notice requirements of section 474A.131, subdivision 2, any 
        bonding authority remaining unissued by the Minnesota housing 
        finance agency on the last business day in December shall be 
        carried forward into the next calendar year by the commissioner 
        for the Minnesota housing finance agency in accordance with 
        section 474A.131, subdivision 2. 
           Sec. 38.  Minnesota Statutes 2000, section 474A.131, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [NOTICE OF ISSUE.] Each issuer that issues 
        bonds with an allocation received under this chapter shall 
        provide a notice of issue to the department on forms provided by 
        the department stating: 
           (1) the date of issuance of the bonds; 
           (2) the title of the issue; 
           (3) the principal amount of the bonds; 
           (4) the type of qualified bonds under federal tax law; and 
           (5) the dollar amount of the bonds issued that were subject 
        to the annual volume cap; and 
           (6) for entitlement issuers, whether the allocation is from 
        current year entitlement authority or is from carry forward 
        authority. 
           For obligations that are issued as a part of a series of 
        obligations, a notice must be provided for each series.  A 
        penalty of one-half of the amount of the application deposit not 
        to exceed $5,000 shall apply to any issue of obligations for 
        which a notice of issue is not provided to the department within 
        five business days after issuance or before the last Monday in 
        December, whichever occurs first.  Within 30 days after receipt 
        of a notice of issue the department shall refund a portion of 
        the application deposit equal to one percent of the amount of 
        the bonding authority actually issued if a one percent 
        application deposit was made, or equal to two percent of the 
        amount of the bonding authority actually issued if a two percent 
        application deposit was made, less any penalty amount. 
           Sec. 39.  Minnesota Statutes 2000, section 474A.131, is 
        amended by adding a subdivision to read: 
           Subd. 1b.  [DEADLINE FOR ISSUANCE OF QUALIFIED BONDS.] If 
        an issuer fails to notify the department before 4:30 p.m. on the 
        last business day in December of issuance of obligations 
        pursuant to an allocation received for any qualified bond 
        project or issuance of an entitlement allocation, the allocation 
        is canceled and the bonding authority is allocated to the 
        Minnesota housing finance agency for carryforward by the 
        commissioner under section 474A.091, subdivision 6. 
           Sec. 40.  Minnesota Statutes 2000, section 474A.131, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CARRYFORWARD NOTICE.] If an issuer intends to 
        carry forward an allocation received under this chapter, it must 
        notify the department in writing before 4:30 p.m. on the last 
        Monday of business day in December.  This notice requirement 
        does not apply to the Minnesota housing finance agency for the 
        carryforward of unallocated unified pool balances.  
           Sec. 41.  Minnesota Statutes 2000, section 474A.14, is 
        amended to read: 
           474A.14 [NOTICE OF AVAILABLE AUTHORITY.] 
           The department shall publish in the State Register a 
        provide at its official Web site a written notice of the amount 
        of bonding authority in the housing, small issue, and public 
        facilities pools as soon after January 1 as possible.  The 
        department shall publish in the State Register a provide at its 
        official Web site a written notice of the amount of bonding 
        authority available for allocation in the unified pool as soon 
        after August 1 as possible. 
           Sec. 42.  Minnesota Statutes 2000, section 475.54, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [IN INSTALLMENTS; EXCEPTION; ANNUAL LIMIT.] 
        Except as provided in subdivision 3, 5a, 15, or 17, or as 
        expressly authorized in another law, all obligations of each 
        issue shall mature or be subject to mandatory sinking fund 
        redemption in installments, the first not later than three years 
        and the last not later than 30 years from the date of the issue; 
        or 40 years or the useful life of the asset, whichever is less, 
        for municipal water and wastewater treatment systems and 
        essential community facilities financed or guaranteed by the 
        United States Department of Agriculture.  No amount of principal 
        of the issue payable in any calendar year shall exceed five 
        times the an amount of equal to the smallest amount payable in 
        any preceding calendar year ending three years or more after the 
        issue date multiplied: 
           (1) by five, in the case of obligations maturing not later 
        than 25 years from the date of issue; and 
           (2) by six, in the case of obligations maturing 25 years or 
        later from the date of issue.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 43.  Minnesota Statutes 2000, section 475.58, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPROVAL BY ELECTORS; EXCEPTIONS.] 
        Obligations authorized by law or charter may be issued by any 
        municipality upon obtaining the approval of a majority of the 
        electors voting on the question of issuing the obligations, but 
        an election shall not be required to authorize obligations 
        issued: 
           (1) to pay any unpaid judgment against the municipality; 
           (2) for refunding obligations; 
           (3) for an improvement or improvement program, which 
        obligation is payable wholly or partly from the proceeds of 
        special assessments levied upon property specially benefited by 
        the improvement or by an improvement within the improvement 
        program, or of taxes levied upon the increased value of property 
        within a district for the development of which the improvement 
        is undertaken, including obligations which are the general 
        obligations of the municipality, if the municipality is entitled 
        to reimbursement in whole or in part from the proceeds of such 
        special assessments or taxes and not less than 20 percent of the 
        cost of the improvement or the improvement program is to be 
        assessed against benefited property or is to be paid from the 
        proceeds of federal grant funds or a combination thereof, or is 
        estimated to be received from such taxes within the district; 
           (4) payable wholly from the income of revenue producing 
        conveniences; 
           (5) under the provisions of a home rule charter which 
        permits the issuance of obligations of the municipality without 
        election; 
           (6) under the provisions of a law which permits the 
        issuance of obligations of a municipality without an election; 
           (7) to fund pension or retirement fund liabilities pursuant 
        to section 475.52, subdivision 6; 
           (8) under a capital improvement plan under section 
        373.40; and 
           (9) to fund facilities as provided in subdivision 3; and 
           (10) under sections 469.1813 to 469.1815 (property tax 
        abatement authority bonds). 
           Sec. 44.  Minnesota Statutes 2000, section 475.59, is 
        amended to read: 
           475.59 [MANNER OF SUBMISSION; NOTICE.] 
           When the governing body of a municipality resolves to issue 
        bonds for any purpose requiring the approval of the electors, it 
        shall provide for submission of the proposition of their 
        issuance at a general or special election or town or school 
        district meeting.  Notice of such election or meeting shall be 
        given in the manner required by law and shall state the maximum 
        amount and the purpose of the proposed issue.  In any school 
        district, the school board or board of education may, according 
        to its judgment and discretion, submit as a single ballot 
        question or as two or more separate questions in the notice of 
        election and ballots the proposition of their issuance for any 
        one or more of the following, stated conjunctively or in the 
        alternative:  acquisition or enlargement of sites, acquisition, 
        betterment, erection, furnishing, equipping of one or more new 
        schoolhouses, remodeling, repairing, improving, adding to, 
        betterment, furnishing, equipping of one or more existing 
        schoolhouses.  In any city, town, or county, the governing body 
        may, according to its judgment and discretion, submit as a 
        single ballot question or as two or more separate questions in 
        the notice of election and ballots the proposition of their 
        issuance, stated conjunctively or in the alternative, for the 
        acquisition, construction, or improvement of any facilities at 
        one or more locations. 
           Sec. 45.  Laws 1974, chapter 473, is amended to read: 
           Section 1.  [SCOTT COUNTY; HOUSING AND REDEVELOPMENT 
        AUTHORITY.] There is hereby created in Scott county a public 
        body corporate and politic, to be known as the Scott county 
        housing and redevelopment authority, having all of the powers 
        and duties of a housing and redevelopment authority under the 
        provisions of the municipal housing and redevelopment act, 
        Minnesota Statutes, Sections 462.411 to 462.711, and acts 
        amendatory thereof; which act applies to the county of 
        Scott 469.001 to 469.047, and having those powers of an economic 
        development authority under the provisions of Minnesota 
        Statutes, sections 469.090 to 469.180 as are granted to it by 
        Scott county as provided below.  For the purposes of applying 
        the provisions of the municipal housing and redevelopment 
        act Minnesota Statutes, sections 469.001 to 469.047 and 469.090 
        to 469.180, to Scott county, the county has all the powers and 
        duties of a municipality, the county board has all of the powers 
        and duties of a governing body, the chairman of the county board 
        has all of the powers and duties of a mayor, and the area of 
        operation includes the area within the territorial boundaries of 
        the county. 
           Sec. 2.  [APPLICATION.] Subdivision 1.  This act shall not 
        limit or restrict any existing housing and redevelopment 
        authority or prevent a municipality from creating an authority.  
        The county shall not exercise jurisdiction in any municipality 
        where a municipal housing and redevelopment authority is 
        established. 
           Subd. 2.  A municipal housing and redevelopment authority 
        may request the Scott county housing and redevelopment authority 
        to handle the housing duties of the authority and, in such an 
        event, the Scott county housing and redevelopment authority 
        shall act and have exclusive jurisdiction for housing in the 
        municipality pursuant to the provisions of the municipal housing 
        and redevelopment act, Minnesota Statutes, Sections 462.411 to 
        462.711, and acts amendatory thereof 469.001 to 469.047.  A 
        transfer of duties relating to housing shall not transfer any 
        duties relating to redevelopment. 
           Sec. 3.  [MUNICIPAL APPROVAL.] If any housing or 
        redevelopment project is undertaken in Scott county pursuant to 
        this authorization, and such project is within the boundaries of 
        any incorporated village, city or township, the location of such 
        project shall be approved by the governing body of such village, 
        city or township. 
           Sec. 4.  [ECONOMIC DEVELOPMENT AUTHORITY POWERS.] The Scott 
        county housing and redevelopment authority may exercise any of 
        the powers of an economic development authority (EDA) granted to 
        it by resolution by the Scott county board of commissioners, 
        except for the authority to levy the tax described in Minnesota 
        Statutes, section 469.107.  With the prior approval of the Scott 
        county board the authority may increase its levy of the special 
        tax described in Minnesota Statutes, section 469.033, 
        subdivision 6, to an amount not exceeding 0.01813 percent of 
        taxable market value, or any higher limit from time to time 
        authorized under Minnesota Statutes, section 469.107 or 469.033, 
        subdivision 6. 
           Sec. 5.  [OFFERS OF TAX-FORFEITED LANDS.] Scott county may 
        offer to the Scott county housing and redevelopment authority, 
        under the conditions and policies established by the county, and 
        subject to the approval of the city in which the property is 
        located, nonconservation tax-forfeited land prior to making the 
        properties available to cities in Scott county. 
           Sec. 4. Sec. 6.  [EFFECTIVE DATE; LOCAL APPROVAL.] This act 
        takes effect when approved by a majority of the board of county 
        commissioners of Scott county and upon compliance with Minnesota 
        Statutes, Section 645.021 This act is effective the day after 
        the governing body of Scott county and its chief clerical 
        officer timely complete their compliance with Minnesota 
        Statutes, section 645.021, subdivisions 2 and 3. 
           Sec. 46.  Laws 1980, chapter 482, is amended to read: 
           Section 1.  [CARVER COUNTY; HOUSING AND REDEVELOPMENT.] 
        Subdivision 1.  There is created in the county of Carver a 
        public body corporate and politic, to be known as the Carver 
        county housing and redevelopment authority, having all of the 
        powers and duties of a housing and redevelopment authority under 
        the provisions of the municipal housing and redevelopment act, 
        Minnesota Statutes, Section 462.411 to 462.711 sections 469.001 
        to 469.047, and having those powers of an economic development 
        authority under the provisions of Minnesota Statutes, sections 
        469.090 to 469.1082, as are granted to it by Carver county as 
        provided in sections 2 to 4.  For the purposes of applying the 
        provisions of the municipal housing and redevelopment 
        act Minnesota Statutes, sections 469.001 to 469.047 and 469.090 
        to 469.1082, to Carver county, the county has all of the powers 
        and duties of a municipality, the county board has all of the 
        powers and duties of a governing body, the chairman of the 
        county board has all of the powers and duties of a mayor, and 
        the area of operation includes the area within the territorial 
        boundaries of the county.  
           Subd. 2.  This section shall not limit or restrict any 
        existing housing and redevelopment authority or prevent a 
        municipality from creating an authority.  The county shall not 
        exercise jurisdiction in any municipality where a municipal 
        housing and redevelopment authority is established.  If a 
        municipal housing and redevelopment authority requests the 
        Carver county housing and redevelopment authority to handle the 
        housing duties of the municipal authority, the Carver county 
        housing and redevelopment authority shall act and have exclusive 
        jurisdiction for housing in the municipality.  A transfer of 
        duties relating to housing shall not transfer any duties 
        relating to redevelopment.  
           Sec. 2.  [ECONOMIC DEVELOPMENT AUTHORITY POWERS.] The 
        Carver county housing and redevelopment authority may exercise 
        any of the powers of an economic development authority granted 
        to it by resolution by the Carver county board of commissioners, 
        except for the authority to levy the tax described in Minnesota 
        Statutes, section 469.107.  With the prior approval of the 
        Carver county board, the authority may increase its levy of the 
        special tax described in Minnesota Statutes, section 469.033, 
        subdivision 6, to an amount not exceeding 0.01813 percent of 
        taxable market value, or any higher limit from time to time, 
        authorized under Minnesota Statutes, section 469.107 or 469.033, 
        subdivision 6. 
           Sec. 3.  [OFFERS OF TAX-FORFEITED LANDS.] Carver county may 
        offer to the Carver county housing and redevelopment authority, 
        under the conditions and policies established by the county, and 
        subject to the approval of the city in which the property is 
        located, nonconservation tax-forfeited land prior to making the 
        properties available to cities in Carver county. 
           Sec. 2.  Sec. 4.  [LOCAL APPROVAL.] Before a housing or 
        redevelopment project of the Carver county housing and 
        redevelopment authority is undertaken, the project shall be 
        approved by the local governing body with jurisdiction over all 
        or any part of the area in which the proposed project is located.
           Sec. 3.  Sec. 5.  [EFFECTIVE DATE; LOCAL APPROVAL.] This 
        act is effective upon takes effect the day of compliance after 
        the governing body of Carver county complies with Minnesota 
        Statutes, Section 645.021, Subdivision 3 subdivisions 2 and 3. 
           Sec. 47.  [CHISAGO LAKES JOINT SEWAGE TREATMENT COMMISSION 
        BONDING AUTHORITY.] 
           Subdivision 1.  [AUTHORITY.] Notwithstanding Minnesota 
        Statutes, section 471.59, subdivision 11, the Chisago lakes 
        joint sewage treatment commission, a joint powers board 
        established by the county of Chisago, and the cities of 
        Lindstrom, Chisago City, and Center City, to own and operate 
        wastewater treatment facilities for the member local 
        governments, may issue and sell general obligation bonds 
        pursuant to Minnesota Statutes, sections 115.46 and 444.075, and 
        chapter 475, to acquire land for, construct, expand, furnish, 
        equip, and modify its wastewater treatment facilities, and 
        pledge the full faith and credit and taxing power of the 
        governmental units that are members of the joint powers board.  
        Bonds issued under this section are not subject to Minnesota 
        Statutes, section 475.58.  The joint powers board is a 
        municipality within the meaning of Minnesota Statutes, chapter 
        475.  Each government unit that is a member of the joint powers 
        board must adopt a resolution authorizing the joint powers board 
        to issue and sell the bonds. 
           Subd. 2.  [EFFECTIVE DATE; NO LOCAL APPROVAL.] This section 
        is effective the day following final enactment and does not 
        require local approval, as provided in Minnesota Statutes, 
        section 645.023, subdivision 1, paragraph (a). 
           Sec. 48.  [HASSAN TOWNSHIP; ECONOMIC DEVELOPMENT AUTHORITY; 
        ESTABLISHMENT AND POWERS.] 
           Subdivision 1.  [FINDINGS.] The legislature finds that it 
        is appropriate to give Hassan township the powers of an economic 
        development authority because the town is located in an 
        increasingly urbanized area and is the only remaining town in 
        Hennepin county. 
           Subd. 2.  [ESTABLISHMENT.] The board of township 
        supervisors of Hassan township may establish an economic 
        development authority in the manner provided in Minnesota 
        Statutes, sections 469.090 to 469.1081, and may impose limits on 
        the authority enumerated in Minnesota Statutes, section 
        469.092.  The economic development authority has all of the 
        powers and duties granted to or imposed upon economic 
        development authorities under Minnesota Statutes, sections 
        469.090 to 469.1081.  The township economic development 
        authority may create and define the boundaries of economic 
        development districts at any place or places within the 
        township, provided that a project as recommended by the township 
        authority that is to be located within the corporate limits of a 
        city may not be commenced without the approval of the governing 
        body of the city.  Minnesota Statutes, section 469.174, 
        subdivision 10, and the contiguity requirement specified under 
        Minnesota Statutes, section 469.101, subdivision 1, do not apply 
        to limit the areas that may be designated as township economic 
        development districts. 
           Subd. 3.  [POWERS.] If an economic development authority is 
        established as provided in subdivision 1, the township may 
        exercise all of the powers relating to an economic development 
        authority granted to a city under Minnesota Statutes, sections 
        469.090 to 469.1081, or other law, including the power to levy a 
        tax to support the activities of the authority. 
           Subd. 4.  [LOCAL APPROVAL.] This section is effective the 
        day after the town board of supervisors of Hassan township and 
        its chief clerical officer timely complete their compliance with 
        Minnesota Statutes, section 645.021, subdivisions 2 and 3. 
           Sec. 49.  [REPEALER.] 
           (a) Minnesota Statutes 2000, sections 373.40, subdivision 
        7; and 474A.061, subdivision 6, are repealed. 
           (b) Minnesota Statutes 2000, section 376.03, is repealed. 
           Sec. 50.  [EFFECTIVE DATE.] 
           Sections 13 to 42 are effective the day after final 
        enactment except that section 19, paragraph (c), is effective to 
        require submissions by December 31, 2002, and annually 
        thereafter. 
           Presented to the governor May 25, 2001 
           Signed by the governor May 29, 2001, 11:30 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes