1.1 	A bill for an act
1.2 	relating to public safety; radio communications;
1.3 	expanding and making permanent the sales and use tax
1.4 	exemption for public safety radio communication system
1.5 	products and services; expanding definition of
1.6 	subsystems; expanding purposes for public safety radio
1.7 	communication systems' revenue bonds; increasing
1.8 	dollar limits and clarifying the kind of subsystem
1.9 	certain revenue bonds may be used for; appropriating
1.10 	money; amending Minnesota Statutes 2004, sections
1.11 	297A.70, subdivision 8; 403.21, subdivision 8; 403.27,
1.12 	subdivisions 1, 3.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	Section 1. Minnesota Statutes 2004, section 297A.70,
1.15 	subdivision 8, is amended to read:
1.16 		Subd. 8.regionwide public safety radio communication
1.17 	system systems; products and services.  Products and services
1.18 	including, but not limited to, end-user equipment used for
1.19 	construction, ownership, operation, maintenance, and enhancement
1.20 	of the backbone system of the regionwide public safety radio
1.21 	communication system established under sections 403.21 to
1.22 	403.34,systems are exempt. For purposes of this subdivision,
1.23 	backbone system is defined in section 403.21, subdivision 9.
1.24 	This subdivision is effective for purchases, sales, storage,
1.25 	use, or consumption occurring before August 1, 2005, in the
1.26 	counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
1.27 	Washington.

1.28 	Sec. 2. Minnesota Statutes 2004, section 403.21,
1.29 	subdivision 8, is amended to read:
2.1 		Subd. 8.Subsystems.  "Subsystems" or "public safety
2.2 	radio subsystems" means systems identified in the plan or a plan
2.3 	developed under section 403.36as subsystems interconnected by
2.4 	the system backbone in subsequent phases and operated by the
2.5 	Metropolitan Radio Board, a regional radio board, or local
2.6 	government units for their own internal operations.

2.7 	Sec. 3. Minnesota Statutes 2004, section 403.27,
2.8 	subdivision 1, is amended to read:
2.9 		Subdivision 1.Authorization.  (a) After consulting with
2.10 	the commissioner of finance, the council, if requested by a vote
2.11 	of at least two-thirds of all of the members of the Metropolitan
2.12 	Radio Board, may, by resolution, authorize the issuance of its
2.13 	revenue bonds for any of the following purposes to:
2.14 	(1) to provide funds for regionwide mutual aid and
2.15 	emergency medical services communications;
2.16 	(2) to provide funds for the elements of the first phase of
2.17 	the regionwide public safety radio communication system that the
2.18 	board determines are of regionwide benefit and support mutual
2.19 	aid and emergency medical services communication including, but
2.20 	not limited to, costs of master controllers of the backbone;
2.21 	(3) to provide money for the second phase of the public
2.22 	safety radio communication system;
2.23 	(4) to the extent money is available after meeting the
2.24 	needs described in clauses (1) to (3), to provide money to
2.25 	reimburse local units of government for amounts expended for
2.26 	capital improvements to the first phase system previously paid
2.27 	for by the local government units; or 
2.28 	(5) to provide money for assistance to a local government
2.29 	unit for up to 50 percent of the cost of building a subsystem in
2.30 	the southeast or central districts of the State Patrol; or 
2.31 	(6) to refund bonds issued under this section.
2.32 	(b) After consulting with the commissioner of finance, the
2.33 	council, if requested by a vote of at least two-thirds of all of
2.34 	the members of the Statewide Radio Board, may, by resolution,
2.35 	authorize the issuance of its revenue bonds to provide money for
2.36 	the third phase of the public safety radio communication system.

3.1 	Sec. 4. Minnesota Statutes 2004, section 403.27,
3.2 	subdivision 3, is amended to read:
3.3 		Subd. 3.Limitations.  (a) The principal amount of the
3.4 	bonds issued pursuant to subdivision 1, exclusive of any
3.5 	original issue discount, shall not exceed the amount of
3.6 	$10,000,000 plus the amount the council determines necessary to
3.7 	pay the costs of issuance, fund reserves, debt service, and pay
3.8 	for any bond insurance or other credit enhancement.
3.9 	(b) In addition to the amount authorized under paragraph
3.10 	(a), the council may issue bonds under subdivision 1 in a
3.11 	principal amount of $3,306,300, plus the amount the council
3.12 	determines necessary to pay the cost of issuance, fund reserves,
3.13 	debt service, and any bond insurance or other credit
3.14 	enhancement.  The proceeds of bonds issued under this paragraph
3.15 	may not be used to finance portable or subscriber radio sets.
3.16 	(c) In addition to the amount authorized under paragraphs
3.17 	(a) and (b), the council may issue bonds under subdivision 1 in
3.18 	a principal amount of $18,000,000, plus the amount the council
3.19 	determines necessary to pay the costs of issuance, fund
3.20 	reserves, debt service, and any bond insurance or other credit
3.21 	enhancement.  The proceeds of bonds issued under this paragraph
3.22 	must be used to pay up to 50 percent of the cost to a local
3.23 	government unit of building a subsystem identified in the plan
3.24 	adopted under section 403.23, subdivision 2,and may not be used
3.25 	to finance portable or subscriber radio sets.  The bond proceeds
3.26 	may be used to make improvements to an existing 800 MHz radio
3.27 	system that will interoperate with the regionwide public safety
3.28 	radio communication system, provided that the improvements
3.29 	conform to the board's plan and technical standards.  The
3.30 	council must time the sale and issuance of the bonds so that the
3.31 	debt service on the bonds can be covered by the additional
3.32 	revenue that will become available in the fiscal year ending
3.33 	June 30, 2005, generated under section 403.11 and appropriated
3.34 	under section 403.30.
3.35 	(d) In addition to the amount authorized under paragraphs
3.36 	(a) to (c), the council may issue bonds under subdivision 1 in a
4.1 	principal amount of up to $27,000,000, plus the amount the
4.2 	council determines necessary to pay the costs of issuance, fund
4.3 	reserves, debt service, and any bond insurance or other credit
4.4 	enhancement.  The proceeds of bonds issued under this paragraph
4.5 	are appropriated to the commissioner of public safety for phase
4.6 	three of the public safety radio communication system.  In
4.7 	anticipation of the receipt by the commissioner of public safety
4.8 	of the bond proceeds, the Metropolitan Radio Board may advance
4.9 	money from its operating appropriation to the commissioner of
4.10 	public safety to pay for design and preliminary engineering for
4.11 	phase three.  The commissioner of public safety must return
4.12 	these amounts to the Metropolitan Radio Board when the bond
4.13 	proceeds are received.
4.14 	(e) In addition to the amount authorized under paragraphs
4.15 	(a) through (d), the council may issue bonds under subdivision 1
4.16 	in a principal amount of up to $......., plus the amount the
4.17 	council determines necessary to pay the costs of issuance, fund
4.18 	reserves, debt service, and any bond insurance or other credit
4.19 	enhancement.  The proceeds of bonds issued under this paragraph
4.20 	are appropriated to the commissioner of public safety for the
4.21 	purpose of subdivision 1, paragraph (a), clause (5), provided
4.22 	that the proceeds may not be used to finance portable or
4.23 	subscriber radio sets.

4.24 	Sec. 5. EFFECTIVE DATE.
 4.25 	Sections 1 to 4 are effective the day following final
4.26 	enactment.