1.1 	A bill for an act
1.2 	relating to political subdivisions; requiring a
1.3 	referendum on pension deficit bonding; requiring draft
1.4 	legislation for 2006 session; amending Minnesota
1.5 	Statutes 2004, section 475.58, subdivision 1.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 475.58,
1.8 	subdivision 1, is amended to read:
1.9 		Subdivision 1.Approval by electors; exceptions.
 1.10 	Obligations authorized by law or charter may be issued by any
1.11 	municipality upon obtaining the approval of a majority of the
1.12 	electors voting on the question of issuing the obligations, but
1.13 	an election shall not be required to authorize obligations
1.14 	issued:
1.15 	(1) to pay any unpaid judgment against the municipality;
1.16 	(2) for refunding obligations;
1.17 	(3) for an improvement or improvement program, which
1.18 	obligation is payable wholly or partly from the proceeds of
1.19 	special assessments levied upon property specially benefited by
1.20 	the improvement or by an improvement within the improvement
1.21 	program, or of taxes levied upon the increased value of property
1.22 	within a district for the development of which the improvement
1.23 	is undertaken, including obligations which are the general
1.24 	obligations of the municipality, if the municipality is entitled
1.25 	to reimbursement in whole or in part from the proceeds of such
2.1 	special assessments or taxes and not less than 20 percent of the
2.2 	cost of the improvement or the improvement program is to be
2.3 	assessed against benefited property or is to be paid from the
2.4 	proceeds of federal grant funds or a combination thereof, or is
2.5 	estimated to be received from such taxes within the district;
2.6 	(4) payable wholly from the income of revenue producing
2.7 	conveniences;
2.8 	(5) under the provisions of a home rule charter which
2.9 	permits the issuance of obligations of the municipality without
2.10 	election;
2.11 	(6) under the provisions of a law which permits the
2.12 	issuance of obligations of a municipality without an election;
2.13 	(7) ~~to fund pension or retirement fund liabilities pursuant~~
2.14 	~~to section 475.52, subdivision 6;~~
2.15 	~~(8)~~ under a capital improvement plan under section 373.40;
2.16 	and
2.17 	~~(9)~~ (8) under sections 469.1813 to 469.1815 (property tax
2.18 	abatement authority bonds), if the proceeds of the bonds are not
2.19 	used for a purpose prohibited under section 469.176, subdivision
2.20 	4g, paragraph (b).
2.21 	
EFFECTIVE DATE. This section is effective August 1, 2005,
2.22 	and applies to debt issued and sold on or after that date.

2.23 	Sec. 2. REVISOR INSTRUCTION.
 2.24 	The revisor of statutes must prepare legislation for
2.25 	introduction at the beginning of the 2006 legislative session.
2.26 	The proposed legislation must strike or repeal the authority in
2.27 	each statute and law that allows a political subdivision of the
2.28 	state to issue and sell general obligation bonds without an
2.29 	election.  The proposed legislation must be given to the chairs
2.30 	of the house and senate committees with jurisdiction over local
2.31 	government issues and taxes.