Minnesota Session Laws - 2010, Regular Session

CHAPTER 369--S.F.No. 3318

An act

relating to state government; imposing a threshold value before notification of certain legislators is required for disposal of certain state-owned buildings; changing provisions in the energy improvement financing program; clarifying responsibility for administration of the state's responsibilities as a member of the workers' compensation reinsurance association;

amending Minnesota Statutes 2008, sections 16B.24, subdivision 3; 16B.322, subdivisions 4, 5; 79.34, subdivision 1; Minnesota Statutes 2009 Supplement, section 16B.322, subdivisions 4a, 4b, 4c.

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

Section 1.

Minnesota Statutes 2008, section 16B.24, subdivision 3, is amended to read:

Subd. 3.

Disposal of old buildings.

new text begin (a) Upon request from the head of an agency with control of a state-owned building with an estimated market value of less than $50,000, as determined by the commissioner, the commissioner may sell, demolish, or otherwise dispose of the building if the commissioner determines that the building is no longer used or is a fire or safety hazard. new text end

deleted text begin The commissioner, deleted text end new text begin (b) new text end Upon request of the head of an agency deleted text begin which has deleted text end new text begin with new text end control of a state-owned building deleted text begin which is no longer used or which is a fire or safety hazard, shall, deleted text end new text begin with an estimated market value of $50,000 or more, as determined by the commissioner, the commissioner may sell, demolish, or otherwise dispose of the building new text end after new text begin determining that the building is no longer used or is a fire or safety hazard and new text end obtaining approval of the chairs of the senate Finance Committee and house of representatives Ways and Means Committee deleted text begin , sell, wreck, or otherwise dispose of the building deleted text end .

new text begin (c) new text end In the event a sale is made new text begin under this subdivision, new text end the proceeds shall be deposited in the deleted text begin proper deleted text end account deleted text begin or in the general fund deleted text end new text begin provided by law. If there is no requirement in law specifying how proceeds must be deposited other than section 16A.72, the proceeds must be deposited in the account from which the appropriation to acquire or construct the building was made. If the account from which the appropriation was made cannot be identified or has been terminated, the proceeds shall be deposited in the general fund new text end .

Sec. 2.

Minnesota Statutes 2008, section 16B.322, subdivision 4, is amended to read:

Subd. 4.

Financing agreement.

The commissioner shall solicit proposals from private financial institutions new text begin on an individual project or line of credit basis new text end and may enter into a financing agreement with one or more financial institutions. new text begin If a financing agreement is for an individual project, new text end the term of the financing agreement shall not exceed 15 years from the date of final completion of the energy improvement project deleted text begin . The deleted text end new text begin and a new text end financing agreement is assignable to the state agency operating or managing the state building or facility improved by the energy improvement project. new text begin The term of a financing agreement on an individual project basis must be less than the average expected useful life of the energy saving measures implemented under the project. new text end The proceeds from the financing agreement are appropriated to the commissioner and may be used for the purposes of this section and are available until spent.

Sec. 3.

Minnesota Statutes 2009 Supplement, section 16B.322, subdivision 4a, is amended to read:

Subd. 4a.

Financing agreement.

The commissioner of administration may, in connection with a financing agreement, covenant deleted text begin in a master lease-purchase agreement deleted text end that the state will abide by the terms and provisions that are customary in net lease or lease-purchase transactions including, but not limited to, covenants providing that the state:

(1) will maintain insurance as required under the terms of the lease agreement;

(2) is responsible to the lessor for any public liability or property damage claims or costs related to the selection, use, or maintenance of the leased equipment, to the extent of insurance or self-insurance maintained by the lessee, and for costs and expenses incurred by the lessor as a result of any default by the lessee;

(3) authorizes the lessor to exercise the rights of a secured party with respect to the equipment subject to the lease in the event of default by the lessee and, in addition, for the present recovery of lease rentals due during the current term of the lease as liquidated damages.

Sec. 4.

Minnesota Statutes 2009 Supplement, section 16B.322, subdivision 4b, is amended to read:

Subd. 4b.

Master lease-purchase agreements not debt.

A deleted text begin tax-exempt lease-purchase agreement related to a deleted text end financing agreement new text begin under this section new text end does not constitute or create a general or moral obligation or indebtedness of the state in excess of the money from time to time appropriated or otherwise available for the payment of rent coming due under the lease, and the state has no continuing obligation to appropriate money for the payment of rent or other obligations under the deleted text begin lease deleted text end new text begin agreement new text end . Rent due under a deleted text begin master lease-purchase deleted text end new text begin financing new text end agreement new text begin under this section new text end during a current deleted text begin lease deleted text end term for which money has been appropriated is a current expense of the state.

Sec. 5.

Minnesota Statutes 2009 Supplement, section 16B.322, subdivision 4c, is amended to read:

Subd. 4c.

Budget offset.

new text begin The commissioner shall require a state agency that uses the state energy improvement program to certify that the agency will budget, allocate, and commit agency funds sufficient to make rent payments under a financing agreement until all rent obligations are paid in full. In the event a participating agency fails to make a rent payment, new text end the commissioner of management and budget shall reduce the operating deleted text begin budgets deleted text end new text begin budget new text end of new text begin the new text end state deleted text begin agencies that use the master lease-purchase program under a financial agreement deleted text end new text begin agency new text end . The amount of the reduction is the amount sufficient to make the actual deleted text begin master lease deleted text end payments.

Sec. 6.

Minnesota Statutes 2008, section 16B.322, subdivision 5, is amended to read:

Subd. 5.

Qualifying energy improvement projects.

The commissioner may approve an energy improvement project deleted text begin and enter into deleted text end new text begin for new text end a financing agreement if the commissioner determines that:

(1) the project and new text begin project new text end financing agreement have been approved by the governing body or head of the state agency that operates or manages the state building or facility to be improved;

(2) the project is technically and economically feasible;

(3) the state agency that operates or manages the state building or facility has made adequate provision for the operation and maintenance of the project;

(4) if an energy efficiency improvement, the project is calculated to result in a positive cash flow in each year the financing agreement is in effect;

(5) the project proposer has fully explored the use of conservation investment plan opportunities under section 216B.241 with the utilities providing gas and electric service to the energy improvement project;

(6) if a renewable energy improvement, the project is calculated to reduce use of fossil-fuel energy; and

(7) if a geothermal energy improvement, the project is calculated to produce savings in terms of nongeothermal energy and costs.

For the purpose of clause (6), "renewable energy" is energy produced by an eligible energy technology as defined in section 216B.1691, subdivision 1, paragraph (a), clause (1).

Sec. 7.

Minnesota Statutes 2008, section 79.34, subdivision 1, is amended to read:

Subdivision 1.

Conditions requiring membership.

The nonprofit association known as the Workers' Compensation Reinsurance Association may be incorporated under chapter 317A with all the powers of a corporation formed under that chapter, except that if the provisions of that chapter are inconsistent with sections 79.34 to 79.40, sections 79.34 to 79.40 govern. Each insurer as defined by section 79.01, subdivision 2, shall, as a condition of its authority to transact workers' compensation insurance in this state, be a member of the reinsurance association and is bound by the plan of operation of the reinsurance association; provided, that all affiliated insurers within a holding company system as defined in chapter 60D are considered a single entity for purposes of the exercise of all rights and duties of membership in the reinsurance association. Each self-insurer approved under section 176.181 and each political subdivision that self-insures shall, as a condition of its authority to self-insure workers' compensation liability in this state, be a member of the reinsurance association and is bound by its plan of operation; provided that:

(1) all affiliated companies within a holding company system, as determined by the commissioner of labor and industry in a manner consistent with the standards and definitions in chapter 60D, are considered a single entity for purposes of the exercise of all rights and duties of membership in the reinsurance association; and

(2) all group self-insurers granted authority to self-insure pursuant to section 176.181 are considered single entities for purposes of the exercise of all the rights and duties of membership in the reinsurance association. As a condition of its authority to self-insure workers' compensation liability, and for losses incurred after December 31, 1983, the state is a member of the reinsurance association and is bound by its plan of operation. The commissioner of deleted text begin management and budget deleted text end new text begin administration new text end represents the state in the exercise of all the rights and duties of membership in the reinsurance association. The amounts necessary to pay the state's premiums required for coverage by the Workers' Compensation Reinsurance Association are appropriated from the general fund to the commissioner of deleted text begin management and budget deleted text end new text begin administration new text end . The University of Minnesota shall pay its portion of workers' compensation reinsurance premiums directly to the Workers' Compensation Reinsurance Association. For the purposes of this section, "state" means the administrative branch of state government, the legislative branch, the judicial branch, the University of Minnesota, and any other entity whose workers' compensation liability is paid from the state revolving fund. The commissioner of management and budget may calculate, prorate, and charge a department or agency the portion of premiums paid to the reinsurance association for employees who are paid wholly or in part by federal funds, dedicated funds, or special revenue funds. The reinsurance association is not a state agency. Actions of the reinsurance association and its board of directors and actions of the commissioner of labor and industry with respect to the reinsurance association are not subject to chapters 13 and 15. All property owned by the association is exempt from taxation. The reinsurance association is not obligated to make any payments or pay any assessments to any funds or pools established pursuant to this chapter or chapter 176 or any other law.

new text begin EFFECTIVE DATE. new text end

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

Presented to the governor May 14, 2010

Signed by the governor May 18, 2010, 3:20 p.m.