1.1 	A bill for an act
1.2 	relating to local government; authorizing local
1.3 	governments to issue certificates of indebtedness with
1.4 	ten-year terms to purchase aerial platform fire
1.5 	trucks; amending Minnesota Statutes 2004, sections
1.6 	373.01, subdivision 3; 410.32; 412.301.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 373.01,
1.9 	subdivision 3, is amended to read:
1.10 		Subd. 3.Capital notes. (a) A county board may, by
1.11 	resolution and without referendum, issue capital notes subject
1.12 	to the county debt limit to purchase capital equipment useful
1.13 	for county purposes that has an expected useful life at least
1.14 	equal to the term of the notes. Except as provided in paragraph
1.15 	(b),the notes shall be payable in not more than five years and
1.16 	shall be issued on terms and in a manner the board determines.
1.17 	A tax levy shall be made for payment of the principal and
1.18 	interest on the notes, in accordance with section 475.61, as in
1.19 	the case of bonds.  For purposes of this subdivision, "capital
1.20 	equipment" means public safety, ambulance, road construction or
1.21 	maintenance, and medical equipment, and computer hardware and
1.22 	original operating system software.  The authority to issue
1.23 	capital notes for original operating systems software expires on
1.24 	July 1, 2005.
1.25 	(b) Capital notes issued for the purchase of aerial
1.26 	platform fire trucks may be payable in not more than ten years.

2.1 	Sec. 2. Minnesota Statutes 2004, section 410.32, is
2.2 	amended to read:
2.3 	410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL
2.4 	EQUIPMENT.
2.5 	(a) Notwithstanding any contrary provision of other law or
2.6 	charter, a home rule charter city may, by resolution and without
2.7 	public referendum, issue capital notes subject to the city debt
2.8 	limit to purchase public safety equipment, ambulance and other
2.9 	medical equipment, road construction and maintenance equipment,
2.10 	and other capital equipment and computer hardware and original
2.11 	operating system software, provided the equipment or software
2.12 	has an expected useful life at least as long as the term of the
2.13 	notes.  The authority to issue capital notes for original
2.14 	operating system software expires on July 1, 2005. Except as
2.15 	provided in paragraph (b),the notes shall be payable in not
2.16 	more than five years and be issued on terms and in the manner
2.17 	the city determines.  The total principal amount of the capital
2.18 	notes issued in a fiscal year shall not exceed 0.03 percent of
2.19 	the market value of taxable property in the city for that year.
2.20 	A tax levy shall be made for the payment of the principal and
2.21 	interest on the notes, in accordance with section 475.61, as in
2.22 	the case of bonds.  Notes issued under this section shall
2.23 	require an affirmative vote of two-thirds of the governing body
2.24 	of the city.  Notwithstanding a contrary provision of other law
2.25 	or charter, a home rule charter city may also issue capital
2.26 	notes subject to its debt limit in the manner and subject to the
2.27 	limitations applicable to statutory cities pursuant to section
2.28 	412.301.
2.29 	(b) Capital notes issued for the purchase of aerial
2.30 	platform fire trucks may be payable in not more than ten years.

2.31 	Sec. 3. Minnesota Statutes 2004, section 412.301, is
2.32 	amended to read:
2.33 	412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
2.34 	(a) The council may issue certificates of indebtedness or
2.35 	capital notes subject to the city debt limits to purchase public
2.36 	safety equipment, ambulance equipment, road construction or
3.1 	maintenance equipment, and other capital equipment and computer
3.2 	hardware and original operating system software, provided the
3.3 	equipment or software has an expected useful life at least as
3.4 	long as the terms of the certificates or notes.  The authority
3.5 	to issue capital notes for original operating system software
3.6 	expires on July 1, 2005. Except as provided in paragraph (b),
3.7 	such certificates or notes shall be payable in not more than
3.8 	five years and shall be issued on such terms and in such manner
3.9 	as the council may determine.  If the amount of the certificates
3.10 	or notes to be issued to finance any such purchase exceeds 0.25
3.11 	percent of the market value of taxable property in the city,
3.12 	they shall not be issued for at least ten days after publication
3.13 	in the official newspaper of a council resolution determining to
3.14 	issue them; and if before the end of that time, a petition
3.15 	asking for an election on the proposition signed by voters equal
3.16 	to ten percent of the number of voters at the last regular
3.17 	municipal election is filed with the clerk, such certificates or
3.18 	notes shall not be issued until the proposition of their
3.19 	issuance has been approved by a majority of the votes cast on
3.20 	the question at a regular or special election.  A tax levy shall
3.21 	be made for the payment of the principal and interest on such
3.22 	certificates or notes, in accordance with section 475.61, as in
3.23 	the case of bonds.
3.24 	(b) Capital notes issued for the purchase of aerial
3.25 	platform fire trucks may be payable in not more than ten years.