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Minnesota Session Laws - 2002, Regular Session

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

                            CHAPTER 390-S.F.No. 2572 
                  An act relating to public financing; providing for 
                  appointment of commissioners in eminent domain 
                  proceedings; modifying a notice for proposed property 
                  taxes; modifying terminology; delaying the expiration 
                  of a mortgage registry and deed tax in Ramsey and 
                  Hennepin counties; modifying terms for loans to 
                  political subdivisions and general obligation revenue 
                  bonds and revenue bonds; requiring notice and hearing 
                  on certain proposed acquisitions by condemnation; 
                  establishing limits on bond issuance for 
                  extraterritorial projects; providing for distribution 
                  of certain funds by the metropolitan council; 
                  authorizing the issuance of additional obligations by 
                  the metropolitan council with certain restrictions; 
                  authorizing municipal obligations without an election 
                  to pay to reconstruct streets under certain 
                  conditions; providing for distribution of proceeds 
                  from certain tax-forfeited lands sales in Koochiching 
                  and Itasca counties; changing the maximum amount and 
                  extending the period in which the city of St. Paul may 
                  issue certain bonds; adding authority for borrowing 
                  money; modifying provision for bonds issued for 
                  erection of a county jail; allowing levy for and 
                  issuance of bonds by Southwest Regional Development 
                  Commission; defining territory of Cook county as a 
                  hospital district and making it generally subject to 
                  chapter 447; authorizing the city of South St. Paul to 
                  convey parcels of real estate for construction of 
                  single family housing; authorizing the region nine 
                  development commission to incorporate; allowing Anoka 
                  county to issue capital improvement bonds for a 
                  specific purpose; establishing the Lakes Area economic 
                  authority; providing the authority with power to levy 
                  taxes; authorizing the city of St. Paul to establish 
                  an independent library agency; authorizing the library 
                  agency to issue bonds; providing for the distribution 
                  and apportionment of certain tax-forfeited land 
                  proceeds; amending Minnesota Statutes 2000, sections 
                  117.075; 383A.80, subdivision 4; 383B.80, subdivision 
                  4; 465.73; 469.012, subdivision 1; 469.034, 
                  subdivision 2; 469.102, subdivision 2; 469.153, by 
                  adding a subdivision; 469.155, subdivisions 3, 4, 8; 
                  469.157; 473.252, subdivision 3; 473.39, by adding a 
                  subdivision; 475.58, by adding a subdivision; 641.23; 
                  Minnesota Statutes 2001 Supplement, section 275.065, 
                  subdivision 3; Laws 1965, chapter 326, section 1, 
                  subdivision 5, as amended; Laws 1967, chapter 170, 
                  section 1, subdivision 5, as amended; Laws 1971, 
                  chapter 773, section 1, subdivision 2, as amended; 
                  Laws 1989, chapter 211, section 8, as amended; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapter 471. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 117.075, is 
        amended to read: 
           117.075 [COURT TO APPOINT COMMISSIONERS.] 
           Upon proof being filed of the service of such notice, the 
        court, at the time and place therein fixed or to which the 
        hearing may be adjourned, shall hear all competent evidence 
        offered for or against the granting of the petition, regulating 
        the order of proof as it may deem best.  If the proposed taking 
        shall appear to be necessary and such as is authorized by law, 
        the court by an order shall appoint three disinterested 
        commissioners, and at least two alternates, residents of the 
        county, to ascertain and report the amount of damages that will 
        be sustained by the several owners on account of such taking.  
           Before appointing a commissioner, the court shall inquire 
        whether each prospective commissioner has any relationship, 
        business or otherwise, to any of the parties in the proceeding, 
        or any interest in the proceeding which may constitute a 
        conflict of interest, or which may create the appearance of 
        impropriety should that person be appointed.  Responses to this 
        inquiry must be either written or on the record and made 
        available by the court to any party in the proceeding before and 
        after appointment.  No person who might have difficulty in 
        rendering an unbiased decision may be appointed to serve.  The 
        court, in its discretion, may appoint one registered, practicing 
        attorney to the commission who is knowledgeable in eminent 
        domain matters.  All other commissioners appointed must be 
        persons actively engaged in the occupation of real estate sales 
        or real estate appraising or persons knowledgeable in real 
        estate values.  The order shall fix the time and place of the 
        first meeting of the three commissioners and prescribe their 
        compensation.  At the first meeting at the office of the court 
        administrator of district court the appointees must be sworn by 
        the court administrator or an authorized deputy and shall take 
        and sign the following oath before assuming their duties as 
        commissioners: 
                             (TITLE OF PROCEEDING) 
           .................................  does swear under penalty 
           of perjury as follows: 
           I will faithfully and justly perform to the best of my 
           ability, all the duties of the office and trust which I now 
           assume as commissioner in the above entitled proceeding.  I 
           further swear that, except as disclosed in writing or on 
           the record, I have no interest in any of the lands in the 
           above proceeding or any present or past relationship, 
           business or personal, with any of the parties to the above 
           proceeding or any other actual or potential conflict of 
           interest, and that I will render fair and impartial 
           decisions, so help me God. 
           The order may, in the discretion of the court, limit the 
        title or easement to be acquired by the petitioner by defining 
        the rights and privileges which the owner of any of the lands 
        may exercise therein in subordination to the public uses to 
        which it is appropriated.  In case any commissioner fails to act 
        or fails to meet the qualifications required by this section, 
        the court without further notice may appoint another in that 
        commissioner's place.  
           The court administrator of court in each county shall post 
        in the courthouse in a prominent place a notice that a qualified 
        person may apply to have the person's name placed upon a list of 
        potential commission appointees for eminent domain proceedings. 
        The notice must contain the language of the oath which the 
        commissioners are required to take upon appointment and shall 
        list the other qualifications set forth in this section.  The 
        court shall give due consideration to the names appearing on the 
        list, but is not bound to make appointments from the list. 
           Sec. 2.  Minnesota Statutes 2001 Supplement, section 
        275.065, subdivision 3, is amended to read: 
           Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
        county auditor shall prepare and the county treasurer shall 
        deliver after November 10 and on or before November 24 each 
        year, by first class mail to each taxpayer at the address listed 
        on the county's current year's assessment roll, a notice of 
        proposed property taxes.  
           (b) The commissioner of revenue shall prescribe the form of 
        the notice. 
           (c) The notice must inform taxpayers that it contains the 
        amount of property taxes each taxing authority proposes to 
        collect for taxes payable the following year.  In the case of a 
        town, or in the case of the state determined portion of the 
        school district levy, the final tax amount will be its proposed 
        tax.  In the case of taxing authorities required to hold a 
        public meeting under subdivision 6, the notice must clearly 
        state that each taxing authority, including regional library 
        districts established under section 134.201, and including the 
        metropolitan taxing districts as defined in paragraph (i), but 
        excluding all other special taxing districts and towns, will 
        hold a public meeting to receive public testimony on the 
        proposed budget and proposed or final property tax levy, or, in 
        case of a school district, on the current budget and proposed 
        property tax levy.  It must clearly state the time and place of 
        each taxing authority's meeting, a telephone number for the 
        taxing authority that taxpayers may call if they have questions 
        related to the notice, and an address where comments will be 
        received by mail.  
           (d) The notice must state for each parcel: 
           (1) the market value of the property as determined under 
        section 273.11, and used for computing property taxes payable in 
        the following year and for taxes payable in the current year as 
        each appears in the records of the county assessor on November 1 
        of the current year; and, in the case of residential property, 
        whether the property is classified as homestead or 
        nonhomestead.  The notice must clearly inform taxpayers of the 
        years to which the market values apply and that the values are 
        final values; 
           (2) the items listed below, shown separately by county, 
        city or town, state determined school tax net of the education 
        homestead credit under section 273.1382, voter approved school 
        levy, other local school levy, and the sum of the special taxing 
        districts, and as a total of all taxing authorities:  
           (i) the actual tax for taxes payable in the current year; 
           (ii) the tax change due to spending factors, defined as the 
        proposed tax minus the constant spending tax amount; 
           (iii) the tax change due to other factors, defined as the 
        constant spending tax amount minus the actual current year tax; 
        and 
           (iv) the proposed tax amount. 
           In the case of a town or the state determined school tax, 
        the final tax shall also be its proposed tax unless the town 
        changes its levy at a special town meeting under section 
        365.52.  If a school district has certified under section 
        126C.17, subdivision 9, that a referendum will be held in the 
        school district at the November general election, the county 
        auditor must note next to the school district's proposed amount 
        that a referendum is pending and that, if approved by the 
        voters, the tax amount may be higher than shown on the notice.  
        In the case of the city of Minneapolis, the levy for the 
        Minneapolis library board and the levy for Minneapolis park and 
        recreation shall be listed separately from the remaining amount 
        of the city's levy.  In the case of the city of St. Paul, the 
        levy for the St. Paul library agency must be listed separately 
        from the remaining amount of the city's levy.  In the case of a 
        parcel where tax increment or the fiscal disparities areawide 
        tax under chapter 276A or 473F applies, the proposed tax levy on 
        the captured value or the proposed tax levy on the tax capacity 
        subject to the areawide tax must each be stated separately and 
        not included in the sum of the special taxing districts; and 
           (3) the increase or decrease between the total taxes 
        payable in the current year and the total proposed taxes, 
        expressed as a percentage. 
           For purposes of this section, the amount of the tax on 
        homesteads qualifying under the senior citizens' property tax 
        deferral program under chapter 290B is the total amount of 
        property tax before subtraction of the deferred property tax 
        amount. 
           (e) The notice must clearly state that the proposed or 
        final taxes do not include the following: 
           (1) special assessments; 
           (2) levies approved by the voters after the date the 
        proposed taxes are certified, including bond referenda, school 
        district levy referenda, and levy limit increase referenda; 
           (3) amounts necessary to pay cleanup or other costs due to 
        a natural disaster occurring after the date the proposed taxes 
        are certified; 
           (4) amounts necessary to pay tort judgments against the 
        taxing authority that become final after the date the proposed 
        taxes are certified; and 
           (5) the contamination tax imposed on properties which 
        received market value reductions for contamination. 
           (f) Except as provided in subdivision 7, failure of the 
        county auditor to prepare or the county treasurer to deliver the 
        notice as required in this section does not invalidate the 
        proposed or final tax levy or the taxes payable pursuant to the 
        tax levy. 
           (g) If the notice the taxpayer receives under this section 
        lists the property as nonhomestead, and satisfactory 
        documentation is provided to the county assessor by the 
        applicable deadline, and the property qualifies for the 
        homestead classification in that assessment year, the assessor 
        shall reclassify the property to homestead for taxes payable in 
        the following year. 
           (h) In the case of class 4 residential property used as a 
        residence for lease or rental periods of 30 days or more, the 
        taxpayer must either: 
           (1) mail or deliver a copy of the notice of proposed 
        property taxes to each tenant, renter, or lessee; or 
           (2) post a copy of the notice in a conspicuous place on the 
        premises of the property.  
           The notice must be mailed or posted by the taxpayer by 
        November 27 or within three days of receipt of the notice, 
        whichever is later.  A taxpayer may notify the county treasurer 
        of the address of the taxpayer, agent, caretaker, or manager of 
        the premises to which the notice must be mailed in order to 
        fulfill the requirements of this paragraph. 
           (i) For purposes of this subdivision, subdivisions 5a and 
        6, "metropolitan special taxing districts" means the following 
        taxing districts in the seven-county metropolitan area that levy 
        a property tax for any of the specified purposes listed below: 
           (1) metropolitan council under section 473.132, 473.167, 
        473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
           (2) metropolitan airports commission under section 473.667, 
        473.671, or 473.672; and 
           (3) metropolitan mosquito control commission under section 
        473.711. 
           For purposes of this section, any levies made by the 
        regional rail authorities in the county of Anoka, Carver, 
        Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
        398A shall be included with the appropriate county's levy and 
        shall be discussed at that county's public hearing. 
           (j) If a statutory or home rule charter city or a town has 
        exercised the local levy option provided by section 473.388, 
        subdivision 7, it may include in the notice of its proposed 
        taxes the amount of its proposed taxes attributable to its 
        exercise of the option.  In the first year of the city or town's 
        exercise of this option, the statement shall include an estimate 
        of the reduction of the metropolitan council's tax on the parcel 
        due to exercise of that option.  The metropolitan council's levy 
        shall be adjusted accordingly. 
           [EFFECTIVE DATE.] This section is effective for notices 
        prepared after the day following final enactment. 
           Sec. 3.  Minnesota Statutes 2000, section 383A.80, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EXPIRATION.] The authority to impose the tax 
        under this section expires January 1, 2003 2008. 
           Sec. 4.  Minnesota Statutes 2000, section 383B.80, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EXPIRATION.] The authority to impose the tax 
        under this section expires January 1, 2003 2008. 
           Sec. 5.  Minnesota Statutes 2000, section 465.73, is 
        amended to read: 
           465.73 [TOWN HALLS; FIRE HALLS OR RESCUE EQUIPMENT; LOANS 
        TO POLITICAL SUBDIVISIONS FUNDED OR SECURED UNDER UNITED STATES 
        AGRICULTURE DEPARTMENT PROGRAMS.] 
           For purposes of constructing, repairing, or acquiring city 
        halls, town halls, fire halls or fire or rescue equipment any, 
        or libraries or child care facilities if otherwise authorized by 
        law, a city, county, or town may borrow up not to 
        $250,000 exceed $450,000 from (i) funds granted to a rural 
        electric cooperative organized under chapter 308A by, the United 
        States Department of Agriculture Rural Business-Cooperative 
        Service or (ii) directly from or in the form of funds guaranteed 
        by the Farmers Home Administration Rural Housing Service or 
        other agency of the United States Department of Agriculture on 
        by a note secured by a mortgage or other security agreement on 
        the property purchased with the borrowed funds.  The city, 
        county, or town may pledge its full faith and credit and assign 
        or pledge the revenues, if any, from the town halls, fire or 
        rescue department, or fire hall or facilities or equipment so 
        financed together with any other properly available funds, 
        including taxes levied pursuant to section 475.61 to the Farmers 
        Home Administration or other agency of the United States 
        Department of Agriculture or its guaranteed lender or a rural 
        electric cooperative organized under chapter 308A as its grantee 
        to repay to secure the loan.  The amount of the obligation shall 
        not be obligation of the note is not to be included when 
        computing the net debt of the city, county, or town.  An 
        election shall not be required to authorize the note and 
        mortgage or assignment of revenues, nor is the approval of the 
        voters required for the issuance of the note. 
           Sec. 6.  Minnesota Statutes 2000, section 469.012, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SCHEDULE OF POWERS.] An authority shall be 
        a public body corporate and politic and shall have all the 
        powers necessary or convenient to carry out the purposes of 
        sections 469.001 to 469.047, except that the power to levy and 
        collect taxes or special assessments is limited to the power 
        provided in sections 469.027 to 469.033.  Its powers include the 
        following powers in addition to others granted in sections 
        469.001 to 469.047:  
           (1) to sue and be sued; to have a seal, which shall be 
        judicially noticed, and to alter it; to have perpetual 
        succession; and to make, amend, and repeal rules consistent with 
        sections 469.001 to 469.047; 
           (2) to employ an executive director, technical experts, and 
        officers, agents, and employees, permanent and temporary, that 
        it requires, and determine their qualifications, duties, and 
        compensation; for legal services it requires, to call upon the 
        chief law officer of the city or to employ its own counsel and 
        legal staff; so far as practicable, to use the services of local 
        public bodies in its area of operation, provided that those 
        local public bodies, if requested, shall make the services 
        available; 
           (3) to delegate to one or more of its agents or employees 
        the powers or duties it deems proper; 
           (4) within its area of operation, to undertake, prepare, 
        carry out, and operate projects and to provide for the 
        construction, reconstruction, improvement, extension, 
        alteration, or repair of any project or part thereof; 
           (5) subject to the provisions of section 469.026, to give, 
        sell, transfer, convey, or otherwise dispose of real or personal 
        property or any interest therein and to execute leases, deeds, 
        conveyances, negotiable instruments, purchase agreements, and 
        other contracts or instruments, and take action that is 
        necessary or convenient to carry out the purposes of these 
        sections; 
           (6) within its area of operation, to acquire real or 
        personal property or any interest therein by gifts, grant, 
        purchase, exchange, lease, transfer, bequest, devise, or 
        otherwise, and by the exercise of the power of eminent domain, 
        in the manner provided by chapter 117, to acquire real property 
        which it may deem necessary for its purposes, after the adoption 
        by it of a resolution declaring that the acquisition of the real 
        property is necessary to eliminate one or more of the conditions 
        found to exist in the resolution adopted pursuant to section 
        469.003 or to provide decent, safe, and sanitary housing for 
        persons of low and moderate income, or is necessary to carry out 
        a redevelopment project.  Real property needed or convenient for 
        a project may be acquired by the authority for the project by 
        condemnation pursuant to this section.  This includes Prior to 
        adoption of a resolution authorizing acquisition of property by 
        condemnation, the governing body of the authority must hold a 
        public hearing on the proposed acquisition after published 
        notice in a newspaper of general circulation in the 
        municipality, which must be made at least one time not less than 
        ten days nor more than 30 days prior to the date of the 
        hearing.  The notice must reasonably describe the property to be 
        acquired and state that the purpose of the hearing is to 
        consider acquisition by exercise of the authority's powers of 
        eminent domain.  Not less than ten days before the hearing, 
        notice of the hearing must also be mailed to the owner of each 
        parcel proposed to be acquired, but failure to give mailed 
        notice or any defects in the notice does not invalidate the 
        acquisition.  For the purpose of giving mailed notice, owners 
        are determined in accordance with section 429.031, subdivision 
        1, paragraph (a).  Property acquired by condemnation under this 
        section may include any property devoted to a public use, 
        whether or not held in trust, notwithstanding that the property 
        may have been previously acquired by condemnation or is owned by 
        a public utility corporation, because the public use in 
        conformity with the provisions of sections 469.001 to 469.047 
        shall be deemed a superior public use.  Property devoted to a 
        public use may be so acquired only if the governing body of the 
        municipality has approved its acquisition by the authority.  An 
        award of compensation shall not be increased by reason of any 
        increase in the value of the real property caused by the 
        assembly, clearance or reconstruction, or proposed assembly, 
        clearance or reconstruction for the purposes of sections 469.001 
        to 469.047 of the real property in an area; 
           (7) within its area of operation, and without the adoption 
        of an urban renewal plan, to acquire, by all means as set forth 
        in clause (6) but without the adoption of a resolution provided 
        for in clause (6), real property, and to demolish, remove, 
        rehabilitate, or reconstruct the buildings and improvements or 
        construct new buildings and improvements thereon, or to so 
        provide through other means as set forth in Laws 1974, chapter 
        228, or to grade, fill, and construct foundations or otherwise 
        prepare the site for improvements.  The authority may dispose of 
        the property pursuant to section 469.029, provided that the 
        provisions of section 469.029 requiring conformance to an urban 
        renewal plan shall not apply.  The authority may finance these 
        activities by means of the redevelopment project fund or by 
        means of tax increments or tax increment bonds or by the methods 
        of financing provided for in section 469.033 or by means of 
        contributions from the municipality provided for in section 
        469.041, clause (9), or by any combination of those means.  Real 
        property with buildings or improvements thereon shall only be 
        acquired under this clause when the buildings or improvements 
        are substandard.  The exercise of the power of eminent domain 
        under this clause shall be limited to real property which 
        contains, or has contained within the three years immediately 
        preceding the exercise of the power of eminent domain and is 
        currently vacant, buildings and improvements which are vacated 
        and substandard.  Notwithstanding the prior sentence, in cities 
        of the first class the exercise of the power of eminent domain 
        under this clause shall be limited to real property which 
        contains, or has contained within the three years immediately 
        preceding the exercise of the power of eminent domain, buildings 
        and improvements which are substandard.  For the purpose of this 
        clause, substandard buildings or improvements mean hazardous 
        buildings as defined in section 463.15, subdivision 3, or 
        buildings or improvements that are dilapidated or obsolescent, 
        faultily designed, lack adequate ventilation, light, or sanitary 
        facilities, or any combination of these or other factors that 
        are detrimental to the safety or health of the community.  The 
        exercise of the power of eminent domain under this clause is 
        subject to the notice and hearing requirements described in 
        clause (6); 
           (8) within its area of operation, to determine the level of 
        income constituting low or moderate family income.  The 
        authority may establish various income levels for various family 
        sizes.  In making its determination, the authority may consider 
        income levels that may be established by the Department of 
        Housing and Urban Development or a similar or successor federal 
        agency for the purpose of federal loan guarantees or subsidies 
        for persons of low or moderate income.  The authority may use 
        that determination as a basis for the maximum amount of income 
        for admissions to housing development projects or housing 
        projects owned or operated by it; 
           (9) to provide in federally assisted projects any 
        relocation payments and assistance necessary to comply with the 
        requirements of the Federal Uniform Relocation Assistance and 
        Real Property Acquisition Policies Act of 1970, and any 
        amendments or supplements thereto; 
           (10) to make an agreement with the governing body or bodies 
        creating the authority which provides exemption from all ad 
        valorem real and personal property taxes levied or imposed by 
        the body or bodies creating the authority.  In the case of 
        low-rent public housing that received financial assistance under 
        the United States Housing Act of 1937, or successor federal 
        legislation, an authority may make an agreement with the 
        governing body or bodies creating the authority to provide 
        exemption from all real and personal property taxes levied or 
        imposed by the state, city, county, or other political 
        subdivision, for which the authority shall make payments in lieu 
        of taxes to the state, city, county, or other political 
        subdivisions as provided in section 469.040.  The governing body 
        shall agree on behalf of all the applicable governing bodies 
        affected that local cooperation as required by the federal 
        government shall be provided by the local governing body or 
        bodies in whose jurisdiction the project is to be located, at no 
        cost or at no greater cost than the same public services and 
        facilities furnished to other residents; 
           (11) to cooperate with or act as agent for the federal 
        government, the state or any state public body, or any agency or 
        instrumentality of the foregoing, in carrying out any of the 
        provisions of sections 469.001 to 469.047 or of any other 
        related federal, state, or local legislation; and upon the 
        consent of the governing body of the city to purchase, lease, 
        manage, or otherwise take over any housing project already owned 
        and operated by the federal government; 
           (12) to make plans for carrying out a program of voluntary 
        repair and rehabilitation of buildings and improvements, and 
        plans for the enforcement of laws, codes, and regulations 
        relating to the use of land and the use and occupancy of 
        buildings and improvements, and to the compulsory repair, 
        rehabilitation, demolition, or removal of buildings and 
        improvements.  The authority may develop, test, and report 
        methods and techniques, and carry out demonstrations and other 
        activities for the prevention and elimination of slums and 
        blight; 
           (13) to borrow money or other property and accept 
        contributions, grants, gifts, services, or other assistance from 
        the federal government, the state government, state public 
        bodies, or from any other public or private sources; 
           (14) to include in any contract for financial assistance 
        with the federal government any conditions that the federal 
        government may attach to its financial aid of a project, not 
        inconsistent with purposes of sections 469.001 to 469.047, 
        including obligating itself (which obligation shall be 
        specifically enforceable and not constitute a mortgage, 
        notwithstanding any other laws) to convey to the federal 
        government the project to which the contract relates upon the 
        occurrence of a substantial default with respect to the 
        covenants or conditions to which the authority is subject; to 
        provide in the contract that, in case of such conveyance, the 
        federal government may complete, operate, manage, lease, convey, 
        or otherwise deal with the project until the defaults are cured 
        if the federal government agrees in the contract to reconvey to 
        the authority the project as then constituted when the defaults 
        have been cured; 
           (15) to issue bonds for any of its corporate purposes and 
        to secure the bonds by mortgages upon property held or to be 
        held by it or by pledge of its revenues, including grants or 
        contributions; 
           (16) to invest any funds held in reserves or sinking funds, 
        or any funds not required for immediate disbursement, in 
        property or securities in which savings banks may legally invest 
        funds subject to their control or in the manner and subject to 
        the conditions provided in section 118A.04 for the deposit and 
        investment of public funds; 
           (17) within its area of operation, to determine where 
        blight exists or where there is unsafe, unsanitary, or 
        overcrowded housing; 
           (18) to carry out studies of the housing and redevelopment 
        needs within its area of operation and of the meeting of those 
        needs.  This includes study of data on population and family 
        groups and their distribution according to income groups, the 
        amount and quality of available housing and its distribution 
        according to rentals and sales prices, employment, wages, 
        desirable patterns for land use and community growth, and other 
        factors affecting the local housing and redevelopment needs and 
        the meeting of those needs; to make the results of those studies 
        and analyses available to the public and to building, housing, 
        and supply industries; 
           (19) if a local public body does not have a planning agency 
        or the planning agency has not produced a comprehensive or 
        general community development plan, to make or cause to be made 
        a plan to be used as a guide in the more detailed planning of 
        housing and redevelopment areas; 
           (20) to lease or rent any dwellings, accommodations, lands, 
        buildings, structures, or facilities included in any project 
        and, subject to the limitations contained in sections 469.001 to 
        469.047 with respect to the rental of dwellings in housing 
        projects, to establish and revise the rents or charges therefor; 
           (21) to own, hold, and improve real or personal property 
        and to sell, lease, exchange, transfer, assign, pledge, or 
        dispose of any real or personal property or any interest 
        therein; 
           (22) to insure or provide for the insurance of any real or 
        personal property or operations of the authority against any 
        risks or hazards; 
           (23) to procure or agree to the procurement of government 
        insurance or guarantees of the payment of any bonds or parts 
        thereof issued by an authority and to pay premiums on the 
        insurance; 
           (24) to make expenditures necessary to carry out the 
        purposes of sections 469.001 to 469.047; 
           (25) to enter into an agreement or agreements with any 
        state public body to provide informational service and 
        relocation assistance to families, individuals, business 
        concerns, and nonprofit organizations displaced or to be 
        displaced by the activities of any state public body; 
           (26) to compile and maintain a catalog of all vacant, open 
        and undeveloped land, or land which contains substandard 
        buildings and improvements as that term is defined in clause 
        (7), that is owned or controlled by the authority or by the 
        governing body within its area of operation and to compile and 
        maintain a catalog of all authority owned real property that is 
        in excess of the foreseeable needs of the authority, in order to 
        determine and recommend if the real property compiled in either 
        catalog is appropriate for disposal pursuant to the provisions 
        of section 469.029, subdivisions 9 and 10; 
           (27) to recommend to the city concerning the enforcement of 
        the applicable health, housing, building, fire prevention, and 
        housing maintenance code requirements as they relate to 
        residential dwelling structures that are being rehabilitated by 
        low- or moderate-income persons pursuant to section 469.029, 
        subdivision 9, for the period of time necessary to complete the 
        rehabilitation, as determined by the authority; 
           (28) to recommend to the city the initiation of municipal 
        powers, against certain real properties, relating to repair, 
        closing, condemnation, or demolition of unsafe, unsanitary, 
        hazardous, and unfit buildings, as provided in section 469.041, 
        clause (5); 
           (29) to sell, at private or public sale, at the price or 
        prices determined by the authority, any note, mortgage, lease, 
        sublease, lease purchase, or other instrument or obligation 
        evidencing or securing a loan made for the purpose of economic 
        development, job creation, redevelopment, or community 
        revitalization by a public agency to a business, for-profit or 
        nonprofit organization, or an individual; 
           (30) within its area of operation, to acquire and sell real 
        property that is benefited by federal housing assistance 
        payments, other rental subsidies, interest reduction payments, 
        or interest reduction contracts for the purpose of preserving 
        the affordability of low- and moderate-income multifamily 
        housing; 
           (31) to apply for, enter into contracts with the federal 
        government, administer, and carry out a section 8 program.  
        Authorization by the governing body creating the authority to 
        administer the program at the authority's initial application is 
        sufficient to authorize operation of the program in its area of 
        operation for which it was created without additional local 
        governing body approval.  Approval by the governing body or 
        bodies creating the authority constitutes approval of a housing 
        program for purposes of any special or general law requiring 
        local approval of section 8 programs undertaken by city, county, 
        or multicounty authorities; and 
           (32) to secure a mortgage or loan for a rental housing 
        project by obtaining the appointment of receivers or assignments 
        of rents and profits under sections 559.17 and 576.01, except 
        that the limitation relating to the minimum amounts of the 
        original principal balances of mortgages specified in sections 
        559.17, subdivision 2, clause (2); and 576.01, subdivision 2, 
        does not apply. 
           Sec. 7.  Minnesota Statutes 2000, section 469.034, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GENERAL OBLIGATION REVENUE BONDS.] (a) An 
        authority may pledge the general obligation of the general 
        jurisdiction governmental unit as additional security for bonds 
        payable from income or revenues of the project or the 
        authority.  The authority must find that the pledged revenues 
        will equal or exceed 110 percent of the principal and interest 
        due on the bonds for each year.  The proceeds of the bonds must 
        be used for a qualified housing development project or 
        projects.  The obligations must be issued and sold in the manner 
        and following the procedures provided by chapter 475, except the 
        obligations are not subject to approval by the electors and the 
        maturities may extend to not more than 30 years from the 
        estimated date of completion of the project.  The authority is 
        the municipality for purposes of chapter 475.  
           (b) The principal amount of the issue must be approved by 
        the governing body of the general jurisdiction governmental unit 
        whose general obligation is pledged.  Public hearings must be 
        held on issuance of the obligations by both the authority and 
        the general jurisdiction governmental unit.  The hearings must 
        be held at least 15 days, but not more than 120 days, before the 
        sale of the obligations. 
           (c) The maximum amount of general obligation bonds that may 
        be issued and outstanding under this section equals the greater 
        of (1) one-half of one percent of the taxable market value of 
        the general jurisdiction governmental unit whose general 
        obligation which includes a tax on property is pledged, or (2) 
        $3,000,000.  In the case of county or multicounty general 
        obligation bonds, the outstanding general obligation bonds of 
        all cities in the county or counties issued under this 
        subdivision must be added in calculating the limit under clause 
        (1). 
           (d) "General jurisdiction governmental unit" means the city 
        in which the housing development project is located.  In the 
        case of a county or multicounty authority, the county or 
        counties may act as the general jurisdiction governmental unit.  
        In the case of a multicounty authority, the pledge of the 
        general obligation is a pledge of a tax on the taxable property 
        in each of the counties. 
           (e) "Qualified housing development project" means a housing 
        development project providing housing either for the elderly or 
        for individuals and families with incomes not greater than 80 
        percent of the median family income as estimated by the United 
        States Department of Housing and Urban Development for the 
        standard metropolitan statistical area or the nonmetropolitan 
        county in which the project is located, and will be owned by the 
        authority for the term of the bonds.  A qualified housing 
        development project may admit nonelderly individuals and 
        families with higher incomes if: 
           (1) three years have passed since initial occupancy; 
           (2) the authority finds the project is experiencing 
        unanticipated vacancies resulting in insufficient revenues, 
        because of changes in population or other unforeseen 
        circumstances that occurred after the initial finding of 
        adequate revenues; and 
           (3) the authority finds a tax levy or payment from general 
        assets of the general jurisdiction governmental unit will be 
        necessary to pay debt service on the bonds if higher income 
        individuals or families are not admitted. 
           Sec. 8.  Minnesota Statutes 2000, section 469.102, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DETAIL; MATURITY.] The authority with the 
        consent of its city's council shall set the date, denominations, 
        place of payment, form, and details of the bonds.  The bonds 
        must mature serially.  The first installment is due in not more 
        than three years and the last in not more than 20 30 years from 
        the date of issuance.  
           Sec. 9.  Minnesota Statutes 2000, section 469.153, is 
        amended by adding a subdivision to read: 
           Subd. 13.  [RELATED PUBLIC IMPROVEMENTS.] "Related public 
        improvements" means any public improvements described in section 
        429.021, that are acquired and constructed in connection with 
        the project and are financed by the contracting party under the 
        revenue agreement. 
           Sec. 10.  Minnesota Statutes 2000, section 469.155, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REVENUE BONDS.] (a) It may issue revenue bonds, 
        in anticipation of the collection of revenues of a project to be 
        situated within the state, to finance, in whole or in part, the 
        cost of the acquisition, construction, reconstruction, 
        improvement, betterment, or extension thereof and of any related 
        public improvements.  
           (b) It may issue revenue bonds to purchase the obligations 
        of local government units located in whole or in part within the 
        boundaries of the municipality.  The proceeds of bonds issued to 
        purchase obligations as provided under this paragraph may be 
        disbursed or otherwise used to pay underwriter's or placement 
        fees, expenses, or other costs of issuance and sale for the 
        bonds only on a pro rata basis determined with respect to the 
        portion of the proceeds that are used to purchase the 
        obligations.  The municipality may not pay the underwriter's or 
        placement fees, expenses, or other costs of issuance and sale 
        out of other money. 
           Sec. 11.  Minnesota Statutes 2000, section 469.155, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REFINANCING NONPROFIT FACILITIES.] It may issue 
        revenue bonds to pay, purchase, or discharge all or any part of 
        the outstanding indebtedness of a contracting party that is an a 
        qualifying organization described in section 501(c)(3) of the 
        Internal Revenue Code primarily engaged in health care-related 
        activities or in activities for mentally or physically disabled 
        persons or that is engaged primarily in the operation of one or 
        more nonprofit hospitals or nursing homes previously incurred in 
        the acquisition or betterment of its existing facilities to the 
        extent deemed necessary by the governing body of the 
        municipality or redevelopment agency; this may include any 
        unpaid interest on the indebtedness accrued or to accrue to the 
        date on which the indebtedness is finally paid, and any premium 
        the governing body of the municipality or redevelopment agency 
        determines to be necessary to be paid to pay, purchase, or 
        defease the outstanding indebtedness.  If revenue bonds are 
        issued for this purpose, the refinancing and the existing 
        properties of the contracting party shall be deemed to 
        constitute a project under section 469.153, subdivision 2, 
        clause (b), (c), or (d).  
           For purposes of this subdivision, "qualifying organization" 
        means an organization that is primarily engaged in one or more 
        of the following: 
           (1) health care related activities; 
           (2) activities for mentally or physically disabled persons; 
           (3) the operation of one or more nonprofit hospitals or 
        nursing homes; 
           (4) educational activities as an elementary, secondary, or 
        post-secondary school; 
           (5) presentation of artistic performances or arts 
        education, such as theaters and museums; or 
           (6) providing social services, such as providing assistance 
        to the poor, distressed, or underprivileged. 
           Sec. 12.  Minnesota Statutes 2000, section 469.155, 
        subdivision 8, is amended to read: 
           Subd. 8.  [IMPLEMENTATION OF POWERS AND COVENANTS; 
        CONSTRUCTION AND ACQUISITION BY CONTRACTING PARTY.] It may make 
        all contracts, execute all instruments, and do all things 
        necessary or convenient in the exercise of the powers granted in 
        sections 469.152 to 469.165, or in the performance of its 
        covenants or duties, or in order to secure the payment of its 
        bonds.  It may enter into a revenue agreement authorizing the 
        contracting party, subject to any terms and conditions the 
        municipality or redevelopment agency finds necessary or 
        desirable and proper, to provide for the construction, 
        acquisition, and installation of the buildings, improvements, 
        and equipment to be included in the project and any related 
        public improvements by any means legally available to the 
        contracting party and in the manner determined by the 
        contracting party and without advertisement for bids unless 
        advertisement by the contracting party is otherwise required by 
        law.  
           Sec. 13.  Minnesota Statutes 2000, section 469.157, is 
        amended to read: 
           469.157 [DETERMINATION OF COST OF PROJECT.] 
           In determining the cost of a project, the governing body 
        may include all cost and estimated cost of the acquisition, 
        construction, reconstruction, improvement, betterment, and 
        extension of the project and any related public improvements, 
        all engineering, inspection, fiscal, legal, administrative, and 
        printing expense, the interest which it is estimated will accrue 
        during the construction period and for six months thereafter on 
        money borrowed or which it is estimated will be borrowed 
        pursuant to sections 469.152 to 469.165, and bond reserves and 
        premiums for insurance of lease rentals pledged to pay the bonds.
           Sec. 14.  [471.656] [LIMITS ON BOND ISSUANCE FOR 
        EXTRATERRITORIAL PROJECTS.] 
           Subdivision 1.  [GENERAL RULE.] Notwithstanding any law to 
        the contrary, neither a municipality nor an authority may issue 
        obligations to finance the acquisition or improvement of real 
        property located outside of the corporate boundaries of the 
        issuer. 
           Subd. 2.  [EXEMPTIONS.] Subdivision 1 does not apply if: 
           (1) the issuing governmental unit is the owner of the 
        property to be financed; or 
           (2) for property or two or more properties constituting a 
        single project located in a city, the governing body of the city 
        consents, by resolution, to issuance of the obligations; or 
           (3) for property or two or more properties constituting a 
        single project located outside of a city or in two or more 
        cities or towns, the governing body of the county in which the 
        property is located consents, by resolution, to issuance of the 
        obligations; or 
           (4) the obligations are issued under a joint powers 
        agreement, whether issued by a joint powers board or by one or 
        more of the parties to the joint powers agreement, and the 
        property is located entirely within the boundaries of one or 
        more of the parties to the joint powers agreement; or 
           (5) the issuer is a municipality or municipalities acting 
        under a joint powers agreement and the financing is for the 
        acquisition or improvement of property, facilities, or rights of 
        use or access thereto which are necessary or useful in the 
        operation of municipal public utilities; or 
           (6) the issuer is a municipal power agency established 
        under chapter 453 or a municipal gas agency established under 
        chapter 453A.  
           Subd. 3.  [DEFINITIONS.] (a) The definitions in section 
        475.51 apply to this section and the following terms have the 
        meanings given in this subdivision.  
           (b) "Authority" means, whether created under general or 
        special law: 
           (1) a housing and redevelopment authority; 
           (2) an economic development authority; 
           (3) a port authority; 
           (4) a rural development financing authority; or 
           (5) other similar local government entities that are 
        authorized by law to issue obligations. 
           (c) "Municipal public utilities" means the provision by a 
        municipality of electricity, natural gas, water, waste water 
        removal and treatment, telecommunications, district heating, or 
        cable television and related services. 
           (d) "Owner of the property" means the entity or entities 
        that are the fee or equitable owners and that are economically 
        at risk with regard to the property. 
           (e) "Real property" includes an easement and improvements 
        made to a leasehold of real property. 
           [EFFECTIVE DATE.] This section is effective for obligations 
        issued or sold after June 30, 2002. 
           Sec. 15.  Minnesota Statutes 2000, section 473.252, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DISTRIBUTION OF FUNDS.] (a) The council must use 
        the funds in the account to make grants to municipalities or 
        development authorities for the cleanup of polluted land in the 
        metropolitan area.  A grant to a metropolitan county or a 
        development authority must be used for a project in a 
        participating municipality.  The council shall prescribe and 
        provide the grant application form to municipalities.  The 
        council must consider the probability of funding from other 
        sources when making grants under this section. 
           (b)(1) The legislature expects that applications for grants 
        will exceed the available funds and the council will be able to 
        provide grants to only some of the applicant municipalities.  If 
        applications for grants for qualified sites exceed the available 
        funds, the council shall make grants that provide the highest 
        return in public benefits for the public costs incurred, that 
        encourage commercial and industrial development that will lead 
        to the preservation or growth of living-wage jobs or the 
        production of affordable housing, and that enhance the tax base 
        of the recipient municipality. 
           (2) In making grants, the council shall establish regular 
        application deadlines in which grants will be awarded from the 
        available money in the account.  If the council provides for 
        application cycles of less than six-month intervals, the council 
        must reserve at least 40 percent of the receipts of the account 
        for a year for application deadlines that occur in the second 
        half of the year.  If the applications for grants exceed the 
        available funds for an application cycle, no more than one-half 
        of the funds may be granted to projects in a statutory or home 
        rule charter city and no more than three-quarters of the funds 
        may be granted to projects located in cities of the first class. 
           (c) A municipality may use the grant to provide a portion 
        of the local match requirement for project costs that qualify 
        for a grant under sections 116J.551 to 116J.557. 
           Sec. 16.  Minnesota Statutes 2000, section 473.39, is 
        amended by adding a subdivision to read: 
           Subd. 1i.  [OBLIGATIONS.] After July 1, 2002, in addition 
        to the authority in subdivisions 1a, 1b, 1c, 1d, 1e, 1g, and 1h, 
        the council may issue certificates of indebtedness, bonds, or 
        other obligations under this section in an amount not exceeding 
        $54,000,000 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. 
           Sec. 17.  [APPLICATION.] 
           Sections 15 and 16 apply in the counties of Anoka, Carver, 
        Dakota, Hennepin, Ramsey, Scott, and Washington. 
           Sec. 18.  Minnesota Statutes 2000, section 475.58, is 
        amended by adding a subdivision to read: 
           Subd. 3b.  [STREET RECONSTRUCTION.] (a) A municipality may, 
        without regard to the election requirement under subdivision 1, 
        issue and sell obligations for street reconstruction, if the 
        following conditions are met: 
           (1) the streets are reconstructed under a street 
        reconstruction plan that describes the streets to be 
        reconstructed, the estimated costs, and any planned 
        reconstruction of other streets in the municipality over the 
        next five years, and the plan and issuance of the obligations 
        has been approved by a vote of all of the members of the 
        governing body following a public hearing for which notice has 
        been published in the official newspaper at least ten days but 
        not more than 28 days prior to the hearing; and 
           (2) if a petition requesting a vote on the issuance is 
        signed by voters equal to five percent of the votes cast in the 
        last municipal general election and is filed with the municipal 
        clerk within 30 days of the public hearing, the municipality may 
        issue the bonds only after obtaining the approval of a majority 
        of the voters voting on the question of the issuance of the 
        obligations. 
           (b) Obligations issued under this subdivision are subject 
        to the debt limit of the municipality and are not excluded from 
        net debt under section 475.51, subdivision 4. 
           Sec. 19.  Minnesota Statutes 2000, section 641.23, is 
        amended to read: 
           641.23 [FUNDS, HOW PROVIDED.] 
           Before any contract is made for the erection of a county 
        jail, sheriff's residence, or both, the county board shall 
        either levy a sufficient tax to provide the necessary funds, or 
        issue county bonds therefor in accordance with the provisions of 
        chapter 475, provided that, unless the issuance of the bonds is 
        approved by the majority of voters voting on the question of 
        their issuance, no election is required if the amount of all 
        bonds issued for this purpose and interest on them which are due 
        and payable in any year shall does not exceed an amount equal to 
        0.09671 percent of market value of taxable property within the 
        county, as last determined before the bonds are issued.  
           Sec. 20.  Laws 1965, chapter 326, section 1, subdivision 5, 
        as amended by Laws 1975, chapter 110, section 1, Laws 1985, 
        chapter 87, section 3, and Laws 1998, chapter 389, article 11, 
        section 11, is amended to read: 
           Subd. 5.  [PROMOTION OF TOURIST, AGRICULTURAL AND 
        INDUSTRIAL DEVELOPMENT.] Promotion of tourist, agricultural and 
        industrial development.  The amount to be spent annually for the 
        purposes of this subdivision shall not exceed $4 $10 per capita 
        of the county's population. 
           Sec. 21.  Laws 1967, chapter 170, section 1, subdivision 5, 
        as amended by Laws 1985, chapter 87, section 6, and Laws 1998, 
        chapter 389, article 11, section 12, is amended to read: 
           Subd. 5.  Promotion of tourist, agricultural and industrial 
        developments.  The amount to be spent annually for the purposes 
        of this subdivision shall not exceed $4 $10 per capita of the 
        county's population. 
           Sec. 22.  [SOUTHWEST REGIONAL DEVELOPMENT COMMISSION; LEVY; 
        DEBT.] 
           (a) In addition to other levies authorized by law, the 
        Southwest Regional Development Commission may levy in each year 
        through 2010, for taxes payable through 2011, an additional 
        amount sufficient to retire its remaining debt in connection 
        with the Prairie Expo project located in Worthington not to 
        exceed $232,080 annually. 
           (b) The commission may issue bonds or other obligations 
        under Minnesota Statutes, chapter 475, in an aggregate principal 
        amount not to exceed $1,632,224, to retire the debt sooner.  In 
        that case the levy authorized in paragraph (a) may be used for 
        debt service on the bonds or other obligations, issued to retire 
        the debt. 
           [EFFECTIVE DATE; LOCAL APPROVAL.] (a) This section is only 
        effective as to all affected government bodies on the day after 
        the last act of compliance under paragraphs (b) and (c) is 
        timely completed. 
           (b) The governing body of the Southwest Regional 
        Development Commission and its chief clerical officer have 
        timely completed their compliance with Minnesota Statutes, 
        section 645.021, subdivisions 2 and 3. 
           (c) The governing body of each county in the development 
        region and its chief clerical officer have timely completed 
        their compliance with Minnesota Statutes, section 645.021, 
        subdivisions 2 and 3. 
           Sec. 23.  Laws 1971, chapter 773, section 1, subdivision 2, 
        as amended by Laws 1974, chapter 351, section 5, Laws 1976, 
        chapter 234, sections 1 and 7, Laws 1978, chapter 788, section 
        1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, 
        section 1, Laws 1988, chapter 513, section 1, Laws 1992, chapter 
        511, article 9, section 23, and Laws 1998, chapter 389, article 
        3, section 27, is amended to read: 
           Subd. 2.  For each of the years through 2003 to 2013, the 
        city of St. Paul is authorized to issue bonds in the aggregate 
        principal amount of $15,000,000 $20,000,000 for each year; or in 
        an amount equal to one-fourth of one percent of the assessors 
        estimated market value of taxable property in St. Paul, 
        whichever is greater, provided that no more than $15,000,000 of 
        bonds is authorized to be issued in any year, unless St. Paul's 
        local general obligation debt as defined in this section is less 
        than six percent of market value calculated as of December 31 of 
        the preceding year; but at no time shall the aggregate principal 
        amount of bonds authorized exceed $18,000,000 in 1998, 
        $18,000,000 in 1999, $19,000,000 in 2000, $19,000,000 in 2001, 
        $19,500,000 in 2002, and $20,000,000 in 2003. 
           Sec. 24.  Laws 1989, chapter 211, section 8, as amended by 
        Laws 1992, chapter 505, section 3, is amended to read: 
           Sec. 8.  [COOK COUNTY; HOSPITAL DISTRICT.] 
           Subdivision 1.  [CREATION; REFERENDUM.] The board of 
        commissioners of Cook county may by resolution create a Cook 
        county hospital district.  The resolution providing for creation 
        of the district must be published in the official newspaper of 
        the county.  If within ten days after the publication a petition 
        is filed with the county board that is signed by qualified 
        voters of the county at least equal in number to ten percent of 
        the number of voters voting at the most recent election of 
        county commissioners, requesting a referendum on the resolution, 
        it shall not be effective until it is approved by a majority of 
        qualified voters voting on the question at a special or general 
        election.  
           Subd. 2.  [OPERATION OF DISTRICT.] A hospital district 
        created under this section shall be subject to Minnesota 
        Statutes, sections 397.06 to 397.102 447.32, except subdivision 
        1, to 447.41, and except as provided otherwise in this act.  
           Subd. 3.  [BOARD.] Notwithstanding Minnesota Statutes, 
        section 397.06 447.32, the board of the district shall be 
        comprised of one member from each county commissioner district 
        elected by the voters at the first general election in the 
        county after the resolution has become effective.  At the 1992 
        general election, the board members from districts one, three, 
        and five shall be elected to two-year terms and board members 
        from districts two and four to four-year terms.  Their 
        successors shall be elected to regular four-year terms in 1994, 
        1996, and thereafter.  Terms shall begin on the first day of 
        January following the election.  
           If members are elected in 1990, their terms shall be two 
        years.  When the district is first created, the county 
        commissioner from each district shall appoint a member of the 
        board to serve until the commencement of the term of a successor.
           When a vacancy occurs, the county commissioner from the 
        district affected majority of the remaining members of the board 
        of the hospital district shall appoint a member to serve until 
        January 1 following the next general election in the county, 
        when at which a successor shall be elected for a full regular 
        term if the full regular term of the seat that had the vacancy 
        is expiring on that January 1 or otherwise, for the unexpired 
        remainder of the regular that seat's term. 
           Subd. 4.  [TAX LEVY.] The tax levied under Minnesota 
        Statutes, section 397.09 447.34, shall not exceed $300,000 in 
        any year, and its proceeds may be used for all purposes of the 
        hospital district. 
           Subd. 5.  [TERRITORY.] The territory of the entire county 
        of Cook is the hospital district. 
           Subd. 6.  [REFERENCES.] The county acts in the place of 
        cities and towns for purposes of Minnesota Statutes, sections 
        447.32, except subdivision 1, to 447.41; and all references made 
        to hospital districts in Minnesota Statutes, sections 447.32, 
        except subdivision 1, to 447.41, apply to the Cook county 
        hospital district. 
           Subd. 7.  [APPLICATION.] Minnesota Statutes, section 
        447.38, subdivision 2, does not apply to the hospital district 
        created under this section. 
           [EFFECTIVE DATE.] For purposes of Minnesota Statutes, 
        section 645.021, subdivisions 2 and 3, Cook county and the Cook 
        county hospital district are the local governmental units 
        affected.  This section is effective the day after the latter of 
        the governing bodies of: 
           (1) Cook county and its chief clerical officer; and 
           (2) the Cook county hospital district and its chief 
        clerical officer; 
        timely complete their compliance with Minnesota Statutes, 
        section 645.021, subdivisions 2 and 3. 
           Sec. 25.  [SOUTH ST. PAUL; SINGLE-FAMILY HOUSING.] 
           Due to the shortage of single-family housing in the city of 
        South St. Paul, the legislature finds and declares that it is a 
        public purpose for the city to facilitate the construction of 
        single-family homes to the greatest extent possible.  The city 
        of South St. Paul may convey to a private person, firm, 
        partnership, corporation, or other entity a parcel of real 
        estate acquired from the Minnesota department of transportation 
        by quit claim deed, that parcel described as:  "That part of the 
        Southwest Quarter of the Northwest Quarter of Section 28, 
        Township 28 North, Range 22 West, Dakota County, Minnesota, 
        described as follows: 
           Beginning at the West Quarter corner of said Section 28; 
        thence East on the East and West Quarter line of said Section 28 
        a distance of 570 feet; thence run Northwesterly to a point on 
        the East line of the West 221.5 feet of said Southwest Quarter 
        of the Northwest Quarter, distant 280 feet North of its 
        intersection with the East and West Quarter line of said Section 
        28; thence run Northwesterly to a point on the West line of said 
        Section 28, distant 375 feet North of the West Quarter corner 
        thereof; thence run South on said West section line 375 feet to 
        the point of beginning."  
           The legislature declares that the conveyance to a private 
        person, firm, partnership, corporation, or other entity for the 
        construction of single-family residential dwellings is a public 
        purpose.  
           [EFFECTIVE DATE.] This section is effective without local 
        approval on the day following its final enactment. 
           Sec. 26.  [REGION NINE DEVELOPMENT COMMISSION; NONPROFIT 
        CORPORATION ESTABLISHED.] 
           Subdivision 1.  [AUTHORIZATION.] The region nine 
        development commission may incorporate and authorize the 
        incorporation of a nonprofit corporation to reduce dependence on 
        tax dollars in filling regional service gaps and funding rural 
        programs by improving the region's access to other funding 
        sources. 
           Subd. 2.  [BOARD OF DIRECTORS.] The corporation must be 
        governed by a board of nine directors.  The directors must be 
        named by the region nine development commission.  No more than 
        five of the directors may be persons currently serving on the 
        region nine development commission.  Board members must not be 
        compensated for their services but may be reimbursed for 
        reasonable expenses incurred in connection with their duties as 
        board members. 
           Subd. 3.  [ARTICLES AND BYLAWS.] The entity must be 
        incorporated under Minnesota Statutes, chapter 317A, and 
        otherwise must comply with Minnesota Statutes, chapter 317A, 
        except to the extent Minnesota Statutes, chapter 317A, is 
        inconsistent with this section. 
           Subd. 4.  [EMPLOYEES.] Persons employed by the nonprofit 
        corporation are not public employees and must not participate in 
        retirement, deferred compensation, insurance, or other plans 
        that apply to public employees generally. 
           Subd. 5.  [CONTRACTING.] The region nine development 
        commission may enter into management contracts or lease 
        agreements, or both, with a nonprofit corporation that is 
        established according to this act. 
           Subd. 6.  [STATUTORY COMPLIANCE.] (a) Minnesota Statutes, 
        section 16A.695, applies to a management contract or lease 
        agreement entered into by the region nine development commission 
        and a nonprofit corporation established according to this act. 
           (b) The nonprofit corporation must comply with Minnesota 
        Statutes, section 465.719, subdivisions 9, 10, 11, 12, 13, and 
        14. 
           Sec. 27.  [ANOKA COUNTY DEBT AUTHORITY.] 
           Subdivision 1.  [AUTHORITY TO INCUR DEBT.] (a) To finance 
        the cost of designing, constructing, and acquiring public safety 
        communication system infrastructure and equipment, the governing 
        body of Anoka county may issue: 
           (1) capital improvement bonds under the provisions of 
        Minnesota Statutes, section 373.40, as if the infrastructure and 
        equipment qualified as a "capital improvement" within the 
        meaning of Minnesota Statutes, section 373.40, subdivision 1, 
        paragraph (b); and 
           (2) capital notes under the provisions of Minnesota 
        Statutes, section 373.01, subdivision 3, as if the equipment 
        qualified as "capital equipment" within the meaning of section 
        373.01, subdivision 3. 
           (b) The original principal amount of the bonds and the 
        capital notes issued under this section may not exceed 
        $12,500,000. 
           Subd. 2.  [TREATMENT OF LEVY.] Notwithstanding Minnesota 
        Statutes, sections 275.065, subdivision 3, and 276.04, the 
        county may report the tax attributable to any levy to pay 
        principal and interest on bonds or notes issued under this 
        section as a separate line item on the proposed property tax 
        notice and the property tax statement. 
           Subd. 3.  [EXPIRATION.] This section expires ten years 
        after the first year in which the county issues a note or bond 
        under this section.  The county may not issue a bond or note 
        under this section with a maturity or payment date after the 
        expiration date of this section.  No property tax may be levied 
        under this section for taxes payable in a calendar year after 
        the calendar year in which this section expires.  Expiration of 
        this section does not affect the obligation to pay or the 
        authority to collect taxes levied under this section before its 
        expiration. 
           [EFFECTIVE DATE.] This section is effective without local 
        approval the day following its final enactment. 
           Sec. 28.  [LEGISLATIVE PURPOSE AND POLICY.] 
           The legislature determines that in the area in and around 
        the city of Alexandria, there are economic development issues 
        that can be more effectively dealt with by a single entity on a 
        coordinated basis rather than by multiple existing government 
        units.  The legislature, therefore, declares that for a 
        coordinated approach to economic development in the area, it is 
        necessary to establish for the area an economic development 
        authority with the responsibility of exercising the powers of an 
        economic development authority in order to advance the economic 
        vitality of the area. 
           Sec. 29.  [DEFINITIONS.] 
           Subdivision 1.  [DEFINITIONS.] For the purposes of sections 
        28 to 35, the terms defined in this section have the following 
        meanings. 
           Subd. 2.  [LAKES AREA ECONOMIC DEVELOPMENT 
        AUTHORITY.] "Lakes area economic development authority" or 
        "authority" means the lakes area economic authority established 
        as provided in section 30. 
           Subd. 3.  [PERSON.] "Person" means an individual, 
        partnership, corporation, cooperative, or other organization or 
        entity, public or private. 
           Subd. 4.  [MEMBER.] "Member" means the city of Alexandria 
        or the townships of Alexandria, Carlos, or La Grand, or any 
        other municipality, the geographic area of which is included 
        within the jurisdiction of the authority. 
           Subd. 5.  [MUNICIPALITY.] "Municipality" means a statutory 
        or home rule charter city or town located in Douglas county. 
           Sec. 30.  [LAKES AREA ECONOMIC DEVELOPMENT AUTHORITY.] 
           Subdivision 1.  [ESTABLISHMENT.] A lakes area economic 
        development authority with jurisdiction over the geographic area 
        of its members is established as a public corporation and 
        political subdivision of the state with perpetual succession and 
        all the rights, powers, privileges, immunities, and duties that 
        may be validly granted to or imposed upon a municipal 
        corporation, as provided in sections 28 to 35. 
           Subd. 2.  [BOARD OF COMMISSIONERS.] The authority is 
        governed by a board of commissioners to be selected as follows:  
        the mayor of each member city, and the chair of the town board 
        of each member town shall appoint one commissioner, subject to 
        the approval of the respective city council or town board.  The 
        terms of the commissioner are as provided in subdivision 5. 
           Subd. 3.  [TIME LIMITS FOR SELECTION, ALTERNATIVE 
        APPOINTMENT BY DISTRICT JUDGE.] The initial appointment of 
        commissioners must be made no later than 60 days after sections 
        28 to 35 become effective.  Subsequent appointments must be made 
        within 60 days before the expiration of a term in the same 
        manner as the predecessor was selected.  A vacancy on the board 
        must be filled within 60 days after it occurs.  If a selection 
        is not made within the prescribed time, the chief judge of the 
        seventh judicial district of the Minnesota district court on 
        application by an interested person shall appoint an eligible 
        person to the board. 
           Subd. 4.  [VACANCIES.] If a vacancy occurs in the office of 
        commissioner, the vacancy must be filled for the unexpired term 
        in a like manner as provided for selection of the commissioner 
        who vacated the office.  The office must be considered vacant 
        under the conditions specified in Minnesota Statutes, section 
        351.02. 
           Subd. 5.  [TERMS OF OFFICE.] The terms of the initial 
        appointees to the board of commissioners are for two, three, 
        four, five, and six years and must be established by lot among 
        the initial five commissioners.  The mayor or town board chair 
        of any new member added under section 33 shall designate the 
        term, not to exceed six years, of the first commissioner 
        selected to represent the member.  Succeeding terms of all 
        commissioners are six years, except that each commissioner 
        serves until a successor has been duly selected and qualified. 
           Subd. 6.  [REMOVAL.] A commissioner may be removed by the 
        unanimous vote of the appointing governing body, with or without 
        cause. 
           Subd. 7.  [QUALIFICATIONS.] A commissioner may, but need 
        not, be a resident of the territory of the member appointing 
        that commissioner. 
           Subd. 8.  [COMPENSATION.] A commissioner must be paid a per 
        diem compensation for attending a regular or special meeting in 
        an amount determined by the board.  A commissioner must be 
        reimbursed for all reasonable expenses incurred in the 
        performance of the commissioner's duties as determined by the 
        board. 
           Sec. 31.  [POWERS; APPLICATION OF EDA LAW.] 
           Subdivision 1.  [USE OF EDA POWERS.] Except as otherwise 
        provided in sections 28 to 35, the authority may exercise any of 
        the powers of an economic development authority (EDA) provided 
        by Minnesota Statutes, sections 469.090 to 469.1082, and for 
        this purpose the term "city" means a member.  Minnesota 
        Statutes, sections 469.096 to 469.101, 469.103 to 469.106, and 
        469.108 to 469.1081 apply to the authority, except that the 
        authority's fiscal year is the calendar year.  
           Subd. 2.  [LAW THAT IS NOT APPLICABLE.] The provisions in: 
           (1) Minnesota Statutes, section 469.091, subdivision 1, 
        expressly relating to: 
           (i) the adoption of an enabling resolution; 
           (ii) Minnesota Statutes, section 469.092; or 
           (iii) housing and redevelopment authorities; and 
           (2) Minnesota Statutes, sections 469.093, 469.095, 469.102, 
        and 469.107; 
        do not apply to the authority. 
           Sec. 32.  [MEMBERS MUST LEVY TAXES FOR AUTHORITY.] 
           A member shall, at the request of the authority, levy a tax 
        in any year for the benefit of the authority.  The tax is, for 
        each member, a pro rata portion of the total amount of tax 
        requested by the authority based on the taxable market value 
        within a member's jurisdiction, but in no event may the tax in 
        any year exceed 0.01813 percent of taxable market value.  For 
        purposes of this section, "taxable market value" has the meaning 
        as given in Minnesota Statutes, section 273.032. 
           The treasurer of each member city or town shall, within 15 
        days after receiving the property tax settlements from the 
        county treasurer, pay to the treasurer of the authority the 
        amount collected for this purpose.  The money must be used by 
        the authority for the purposes provided by sections 28 to 35. 
           Sec. 33.  [ADDITION AND WITHDRAWAL OF MEMBERS.] 
           Subdivision 1.  [ADDITIONS.] A municipality upon a 
        resolution adopted by a four-fifths vote of all of its governing 
        body may petition the authority to be included within the 
        jurisdiction of the authority and, if approved by the authority, 
        the geographic area of the municipality must be included within 
        the jurisdiction of the authority and subject to the 
        jurisdiction of the authority under sections 28 to 35. 
           Subd. 2.  [WITHDRAWALS.] A municipality may withdraw from 
        the authority by resolution of its governing body.  The 
        municipality must notify the board of commissioners of the 
        authority of the withdrawal by providing a copy of the 
        resolution at least two years in advance of the proposed 
        withdrawal.  Unless the authority and the withdrawing member 
        agree otherwise by action of their governing bodies, the taxable 
        property of the withdrawing member is subject to the property 
        tax levy under section 32 for two taxes payable years following 
        the notification of the withdrawal and the withdrawing member 
        retains any rights, obligations, and liabilities obtained or 
        incurred during its participation. 
           Sec. 34.  [CONTRACTS WITH NONPROFIT CORPORATIONS.] 
           The authority may enter into contracts with one or more 
        nonprofit corporations to make, from funds of and under 
        guidelines set by the authority, loans or grants for projects 
        the authority may undertake under sections 28 to 35.  Minnesota 
        Statutes, section 465.719, does not apply so long as the 
        nonprofit corporation is not described in Minnesota Statutes, 
        section 465.719, subdivision 1, paragraph (b)(i) or (b)(ii). 
           Sec. 35.  [RELATION TO EXISTING LAWS.] 
           Sections 28 to 35 must be given full effect notwithstanding 
        any law or charter that is inconsistent with them. 
           Sec. 36.  [ST. PAUL LIBRARY AGENCY.] 
           (a) Notwithstanding any law or charter to the contrary, the 
        city council of the city of St. Paul may, by ordinance, 
        establish an independent library agency, a public body corporate 
        and politic, which is a governmental subdivision of the state of 
        Minnesota.  The library agency is responsible for all libraries 
        and library operations within the city of St. Paul.  The actions 
        of the city council as library board are subject to mayoral veto 
        and override of that veto in the same manner as other actions of 
        the city council. 
           (b) All employees of the library agency are employees of 
        the city of St. Paul. 
           (c) The city may transfer any real or personal property 
        used or to be used for library purposes to the library agency. 
           (d) The library board shall designate among its members a 
        chair, secretary, and treasurer, and may adopt bylaws. 
           (e) The director of the library agency shall be appointed 
        by the mayor. 
           [EFFECTIVE DATE.] This section is effective the day after 
        the governing body of St. Paul and its chief clerical officer 
        timely complete their compliance with Minnesota Statutes, 
        section 645.021, subdivisions 2 and 3. 
           Sec. 37.  [ST. PAUL LIBRARY AGENCY TAX LEVIES; FISCAL 
        MATTERS.] 
           Subdivision 1.  [BUDGET TO CITY.] Annually, at a time fixed 
        by charter, resolution, or ordinance of the city, the library 
        board shall send its budget to the city council.  The budget 
        must include a detailed written estimate of the amount of money 
        that the library board expects to need from the city to operate 
        the library agency during the next fiscal year in excess of any 
        expected receipts from other sources. 
           Subd. 2.  [FISCAL YEAR.] The fiscal year of the library 
        agency must be the same as the fiscal year of the city. 
           Subd. 3.  [CITY LEVY.] The city shall, at the request of 
        the library board, levy a tax in any year for the benefit of the 
        library agency.  The amount collected pursuant to the levy must 
        be held by the city treasurer exclusively for operations of the 
        library agency. 
           [EFFECTIVE DATE.] This section is effective the day after 
        the governing body of St. Paul and its chief clerical officer 
        timely complete their compliance with Minnesota Statutes, 
        section 645.021, subdivisions 2 and 3. 
           Sec. 38.  [ST. PAUL LIBRARY AGENCY GENERAL OBLIGATION 
        BONDS.] 
           Subdivision 1.  [POWER; PROCEDURE.] The library agency may 
        issue bonds in the principal amount authorized by the city 
        council.  The bonds may be issued in anticipation of income from 
        any source.  The bonds may be issued: 
           (1) to secure funds needed by the library agency to pay for 
        acquired real or personal property; or 
           (2) for capital improvements to property owned or used by 
        the library. 
           The bonds must be in the amount and form and bear interest 
        at the rate set by the city council.  Except as otherwise 
        provided in this section, the issuance of the bonds is governed 
        by Minnesota Statutes, chapter 475.  The library agency when 
        issuing the bonds is a municipality under Minnesota Statutes, 
        chapter 475.  Notwithstanding any city charter provision or any 
        general or special law to the contrary, the bonds may be issued 
        and sold without submission of the question to the electors of 
        the city, provided that the ordinance of the city council 
        authorizing issuance of the bonds by the library agency is 
        subject to provisions in the city charter pertaining to the 
        procedure for referendum on ordinances enacted by the city 
        council. 
           Subd. 2.  [OUTSIDE DEBT LIMIT.] Bonds issued by the library 
        agency must not be included in the net debt of the city of St. 
        Paul.  Money received under this section must not be included in 
        a per capita limit on taxing or spending in the city charter.  
        The library agency is also exempt from the limit. 
           Subd. 3.  [PLEDGE.] The bonds must be secured by the pledge 
        of the full faith, credit, and resources of the city of St. 
        Paul.  The city council must first decide whether the issuance 
        of the bonds by the library agency is proper in each case and, 
        if so, the amount of bonds to issue.  The city council shall 
        give specific consent in an ordinance to the pledge of the 
        city's full faith, credit, and resources.  The city shall pay 
        the principal amount of the bonds and the interest on them from 
        taxes levied under this section to make the payment or from 
        library board income from any source. 
           [EFFECTIVE DATE.] This section is effective the day after 
        the governing body of St. Paul and its chief clerical officer 
        timely complete their compliance with Minnesota Statutes, 
        section 645.021, subdivisions 2 and 3. 
           Sec. 39.  [ST. LOUIS COUNTY; FORFEITED LAND; PROCEEDS.] 
           Subdivision 1.  [AUTHORITY; PURPOSES.] Notwithstanding the 
        provisions of Minnesota Statutes, section 282.08, clause (4), 
        the county board of St. Louis county, out of the proceeds from 
        the sale or rental of any parcel of forfeited land, or from the 
        sale of any products from that land after making the payments 
        directed by Minnesota Statutes, section 282.08, clauses (1), 
        (2), and (3), may annually by resolution apportion the balance 
        including undistributed receipts remaining in the fund on the 
        effective date of this section as provided in subdivisions 2 to 
        5. 
           Subd. 2.  [TIMBER DEVELOPMENT; MEMORIAL FORESTS.] No more 
        than 30 percent of the balance is to be used for timber 
        development on tax-forfeited land and dedicated memorial forests 
        to be expended under the supervision of the county board on 
        projects approved by the commissioner of natural resources. 
           Subd. 3.  [OTHER PURPOSES.] No more than 20 percent of the 
        balance is to be used for the following purposes: 
           (1) acquisition and maintenance of county parks or 
        recreational areas as defined in Minnesota Statutes, sections 
        398.31 to 398.36; 
           (2) land use planning programs being carried on in the 
        county including the enforcement of any controls developed in 
        said program; and 
           (3) no more than $4 per capita of the county's population 
        on the promotion of tourist, agricultural, and economic 
        development. 
           Subd. 4.  [USE FOR STATE OR FEDERAL PROGRAMS.] Any funds 
        set aside by the county board pursuant to subdivisions 2 and 3 
        may be used by the county board as the county's share in any 
        state or federal aid program relating to the purposes stated in 
        subdivisions 2 and 3. 
           Subd. 5.  [APPORTIONMENT.] Any balance must be apportioned 
        as follows:  county, 40 percent; town or city, 20 percent; and 
        school district, 40 percent.  But in unorganized territories, 
        the portion that should have accrued to the township must be 
        administered by the county board of commissioners. 
           [EFFECTIVE DATE; LOCAL APPROVAL.] This section is effective 
        the day after the governing body of St. Louis county and its 
        chief clerical officer timely complete their compliance with 
        Minnesota Statutes, section 645.021, subdivisions 2 and 3. 
           Sec. 40.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
           Sections 28 to 35 are only effective as to all affected 
        governing bodies on the day after the last of the governing 
        bodies of the city of Alexandria and the towns of Alexandria, 
        Carlos, and La Grand in Douglas county and the chief clerical 
        officer of each of them timely complete their compliance with 
        Minnesota Statutes, section 645.021, subdivisions 2 and 3. 
           The rest of this act, unless otherwise specifically stated, 
        is effective the day following its final enactment. 
           Presented to the governor May 18, 2002 
           Signed by the governor May 22, 2002, 1:20 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569