Bill Text: MN HF794 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Improvement bonds authorized with certain terms and conditions; definitions modified; and clarifying, technical, and other changes made relating to the issuance of municipal bonds.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-03-03 - Introduction and first reading, referred to Taxes [HF794 Detail]
Download: Minnesota-2011-HF794-Introduced.html
1.2relating to public finance; authorizing the issuance of improvement bonds
1.3with certain terms and conditions; modifying definitions; making clarifying,
1.4technical, and other changes relating to the issuance of municipal bonds;
1.5amending Minnesota Statutes 2010, sections 116J.994, subdivision 2; 216C.435,
1.6subdivision 8; 216C.436, subdivisions 7, 8; 373.40, subdivisions 1, 2, 4;
1.7429.101; 474A.02, subdivisions 22b, 23a; 475.521, subdivisions 1, 2, 4; 475.54,
1.8subdivision 1; 475.58, subdivision 3b.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2010, section 116J.994, subdivision 2, is amended to
1.11read:
1.12 Subd. 2. Developing a set of criteria. A business subsidy may not be granted until
1.13the grantor has adopted criteria after a public hearing for awarding business subsidies
1.14that comply with this section. The criteria may not be adopted on a case-by-case basis.
1.15The criteria must set specific minimum requirements that recipients must meet in order
1.16to be eligible to receive business subsidies. The criteria must include a specific wage
1.17floor for the wages to be paid for the jobs created. The wage floor may be stated as a
1.18specific dollar amount or may be stated as a formula that will generate a specific dollar
1.19amount. A grantor may deviate from its criteria by documenting in writing the reason
1.20for the deviation and attaching a copy of the document to its next annual report to the
1.21department. The commissioner of employment and economic development may assist
1.22local government agencies in developing criteria. A copy of the criteria must be submitted
1.23to the Department of Employment and Economic Development along with the first annual
1.24report following May 15, 2000, or with the first annual report after it has adopted criteria,
1.25whichever is earlier.Notwithstanding section
116J.993, subdivision 3, clauses (1) and
2.1(21), for the purpose of this subdivision, "business subsidies" as defined under section
2.2116J.993 includes the following forms of financial assistance:
2.3(1) a business subsidy of $25,000 or more; and
2.4(2) business loans and guarantees of $75,000 or more.
2.5 Sec. 2. Minnesota Statutes 2010, section 216C.435, subdivision 8, is amended to read:
2.6 Subd. 8. Qualifying real property. "Qualifying real property" means a
2.7single-family or multifamily residential dwelling, or a commercial or industrial building,
2.8that the implementing entity has determined, after review of an energy audit or renewable
2.9energy system feasibility study,can be benefited may experience increased energy
2.10efficiency by installation of energy improvements.
2.11 Sec. 3. Minnesota Statutes 2010, section 216C.436, subdivision 7, is amended to read:
2.12 Subd. 7. Repayment. An implementing entity that finances an energy improvement
2.13under this section must:
2.14(1) secure payment with a lien against thebenefited qualifying real property; and
2.15(2) collect repayments as a special assessment as provided for in section429.101
2.16or by charter; provided that special assessments may be made payable in up to 20 equal
2.17annual installments.
2.18If the implementing entity is an authority, the local government that authorized
2.19the authority to act as implementing entity shall impose and collect special assessments
2.20necessary to pay debt service on bonds issued by the implementing entity under
2.21subdivision 8, and shall transfer all collections of the assessments upon receipt to the
2.22authority.
2.23 Sec. 4. Minnesota Statutes 2010, section 216C.436, subdivision 8, is amended to read:
2.24 Subd. 8. Bond issuance; repayment. (a) An implementing entity may issue
2.25revenue improvement bonds as provided in chapter 475 section 429.101 for the purposes
2.26of this section; provided that such improvement bonds shall be payable not more than 20
2.27years from the date of issuance.
2.28(b) Thebonds principal amount of the improvement bonds must be payable as to
2.29both principal and interest solely from the revenues from not exceed the amount of the
2.30assessments established in subdivision 7.
2.31(c) No holder of bonds issued under this subdivision may compel any exercise of the
2.32taxing power of the implementing entity that issued the bonds to pay principal or interest
2.33on the bonds, and if the implementing entity is an authority, no holder of the bonds may
3.1compel any exercise of the taxing power of the local government. Bonds issued under
3.2this subdivision are not a debt or obligation of the issuer or any local government that
3.3issued them, nor is the payment of the bonds enforceable out of any money other than the
3.4revenue pledged to the payment of the bonds.
3.5 Sec. 5. Minnesota Statutes 2010, section 373.40, subdivision 1, is amended to read:
3.6 Subdivision 1. Definitions. For purposes of this section, the following terms have
3.7the meanings given.
3.8(a) "Bonds" means an obligation as defined under section475.51 .
3.9(b) "Capital improvement" means acquisition or betterment of public lands,
3.10buildings, or other improvements within the county for the purpose of a county
3.11courthouse, administrative building, health or social service facility, correctional facility,
3.12jail, law enforcement center, hospital, morgue, library, park, qualified indoor ice arena,
3.13roads and bridges, public works facilities, fairgrounds buildings, and records and data
3.14storage facilities and the acquisition of development rights in the form of conservation
3.15easements under chapter 84C. An improvement must have an expected useful life of five
3.16years or more to qualify. "Capital improvement" does not include light rail transit or any
3.17activity related to it or a recreation or sports facility building (such as, but not limited to, a
3.18gymnasium, ice arena, racquet sports facility, swimming pool, exercise room or health
3.19spa), unless the building is part of an outdoor park facility and is incidental to the primary
3.20purpose of outdoor recreation. For purposes of this section, "capital improvement"
3.21includes expenditures for purposes described in this paragraph that have been incurred by
3.22a county before approval of a capital improvement plan, if such expenditures are included
3.23in a capital improvement plan approved on or before the date of the public hearing under
3.24subdivision 2 regarding issuance of bonds for such expenditures.
3.25(c) "Metropolitan county" means a county located in the seven-county metropolitan
3.26area as defined in section473.121 or a county with a population of 90,000 or more.
3.27(d) "Population" means the population established by the most recent of the
3.28following (determined as of the date the resolution authorizing the bonds was adopted):
3.29(1) the federal decennial census,
3.30(2) a special census conducted under contract by the United States Bureau of the
3.31Census, or
3.32(3) a population estimate made either by the Metropolitan Council or by the state
3.33demographer under section4A.02 .
3.34(e) "Qualified indoor ice arena" means a facility that meets the requirements of
3.35section373.43 .
4.1(f) "Tax capacity" means total taxable market value, but does not include captured
4.2market value.
4.3 Sec. 6. Minnesota Statutes 2010, section 373.40, subdivision 2, is amended to read:
4.4 Subd. 2. Application of election requirement. (a) Bonds issued by a county
4.5to finance capital improvements under an approved capital improvement plan are not
4.6subject to the election requirements of section375.18 or
475.58 . The bonds must be
4.7approved by vote of at least three-fifths of the members of the county board. In the case
4.8of a metropolitan county, the bonds must be approved by vote of at least two-thirds of
4.9the members of the county board.
4.10(b) Before issuance of bonds qualifying under this section, the county must publish
4.11a notice of its intention to issue the bonds and the date and time of a hearing to obtain
4.12public comment on the matter. The notice must be published in the official newspaper
4.13of the county or in a newspaper of general circulation in the county. The notice must be
4.14published at least14 ten, but not more than 28, days before the date of the hearing.
4.15(c) A county may issue the bonds only upon obtaining the approval of a majority of
4.16the voters voting on the question of issuing the obligations, if a petition requesting a vote
4.17on the issuance is signed by voters equal to five percent of the votes cast in the county in
4.18the last county general election and is filed with the county auditor within 30 days after
4.19the public hearing.The commissioner of revenue shall prepare a suggested form of the
4.20question to be presented at the election. If the county elects not to submit the question to
4.21the voters, the county shall not propose the issuance of bonds under this section for the
4.22same purpose and in the same amount for a period of 365 days from the date of receipt
4.23of the petition. If the question of issuing the bonds is submitted and not approved by the
4.24voters, the provisions of section 475.58, subdivision 1a, shall apply.
4.25 Sec. 7. Minnesota Statutes 2010, section 373.40, subdivision 4, is amended to read:
4.26 Subd. 4. Limitations on amount. A county may not issue bonds under this section
4.27if the maximum amount of principal and interest to become due in any year on all the
4.28outstanding bonds issued pursuant to this section (including the bonds to be issued) will
4.29equal or exceed 0.12 percent of taxable market value of property in the county. Calculation
4.30of the limit must be made using the taxable market value for the taxes payable year in
4.31which the obligations are issued and sold., provided that, for purposes of determining
4.32the principal and interest due in any year, the county may deduct the amount of interest
4.33expected to be paid or reimbursed to the county by the federal government in such year on
5.1any outstanding bonds or the bonds to be issued. This section does not limit the authority
5.2to issue bonds under any other special or general law.
5.3 Sec. 8. Minnesota Statutes 2010, section 429.101, is amended to read:
5.4429.101 UNPAID SPECIAL CHARGES MAY BE SPECIAL ASSESSMENTS.
5.5 Subdivision 1. Ordinances. (a) In addition to any other method authorized by
5.6law or charter, the governing body of any municipality may provide for the collection
5.7of unpaid special charges as a special assessment against the propertybenefited for all
5.8or any part of the cost of:
5.9 (1) snow, ice, or rubbish removal from sidewalks;
5.10 (2) weed elimination from streets or private property;
5.11 (3) removal or elimination of public health or safety hazards from private property,
5.12excluding any structure included under the provisions of sections463.15 to
463.26 ;
5.13 (4) installation or repair of water service lines, street sprinkling or other dust
5.14treatment of streets;
5.15 (5) the trimming and care of trees and the removal of unsound trees from any street;
5.16 (6) the treatment and removal of insect infested or diseased trees on private property,
5.17the repair of sidewalks and alleys;
5.18 (7) the operation of a street lighting system;
5.19 (8) the operation and maintenance of a fire protection or a pedestrian skyway system;
5.20 (9) inspections relating to a municipal housing maintenance code violation;
5.21 (10) the recovery of any disbursements under section504B.445, subdivision 4 ,
5.22clause (5), including disbursements for payment of utility bills and other services, even if
5.23provided by a third party, necessary to remedy violations as described in section504B.445,
5.24subdivision 4 , clause (2); or
5.25 (11) [Repealed, 2004 c 275 s 5]
5.26 (12) the recovery of delinquent vacant building registration fees under a municipal
5.27program designed to identify and register vacant buildings.
5.28 (b) The council may by ordinance adopt regulations consistent with this section to
5.29make this authority effective, including, at the option of the council, provisions for placing
5.30primary responsibility upon the property owner or occupant to do the work personally
5.31(except in the case of street sprinkling or other dust treatment, alley repair, tree trimming,
5.32care, and removal, or the operation of a street lighting system) upon notice before the work
5.33is undertaken, and for collection from the property owner or other person served of the
5.34charges when due before unpaid charges are made a special assessment.
6.1(c) A home rule charter city, statutory city, county, or town operating an energy
6.2improvements financing program under section216C.436 has the authority granted to a
6.3municipality under paragraph (a) with respect to energy improvements financed under
6.4that section.
6.5 Subd. 2. Procedure for assessment. Any special assessment levied under
6.6subdivision 1 shall be payable in a single installment, or by up to ten equal annual
6.7installments as the council may provide. With this exception, sections429.061 ,
429.071 ,
6.8and429.081 shall apply to assessments made under this section. For special assessments
6.9levied under subdivision 1, the municipality shall not be required to demonstrate that
6.10the value of the property is increased or that the property is otherwise benefited by the
6.11special charges described in subdivision 1.
6.12 Subd. 3. Issuance of obligations. (a) After a contract for any of the work
6.13enumerated in subdivision 1 has been let, or the work commenced, the council may
6.14issueobligations improvement bonds to defray the expense of any such work financed
6.15in whole or in part by special charges and assessments imposed uponbenefited property
6.16under this section.
6.17(b) Section429.091 shall apply to such obligations improvement bonds with the
6.18following modifications:
6.19(1) suchobligations improvement bonds shall be payable not more than two ten
6.20years from the date of issuance, or six months following the last installment of the special
6.21assessments levied as provided in subdivisions 1 and 2, whichever is later;
6.22(2) the amount of suchobligations improvement bonds, other than improvement
6.23bonds for energy improvements described in subdivision 1, paragraph (c), which are
6.24limited by section 216C.436, issued at one time in a municipality shall not exceed the cost
6.25of such work during the ensuing six months as estimated by the council;
6.26(3) a separate improvement fund shall be set up for each of the enumerated services
6.27referred to in subdivision 1 and financed under this section.
6.28(c) Proceeds of special charges as well as special assessments and taxes shall be
6.29credited to such improvement fund.
6.30 Sec. 9. Minnesota Statutes 2010, section 474A.02, subdivision 22b, is amended to read:
6.31 Subd. 22b. Public facilities project. "Public facilities project" means anypublicly
6.32owned facility, or facility owned by a nonprofit organization that is used for district
6.33heating or cooling, that is eligible to be financed with the proceeds of public facilities
6.34bonds as defined undersection
474A.02, subdivision 23a
7.1 Sec. 10. Minnesota Statutes 2010, section 474A.02, subdivision 23a, is amended to
7.2read:
7.3 Subd. 23a. Qualified bonds. "Qualified bonds" means the specific type or types
7.4of obligations that are subject to the annual volume cap. Qualified bonds include the
7.5following types of obligations as defined in federal tax law:
7.6(a) "public facility bonds" means "exempt facility bonds" as defined in federal
7.7tax law, except for residential rental project bonds, which are those obligations issued
7.8to finance airports, docks and wharves, mass commuting facilities, facilities for the
7.9furnishing of water, sewage facilities, solid waste disposal facilities, facilities for the
7.10local furnishing of electric energy or gas, local district heating or cooling facilities, and
7.11qualified hazardous waste facilities. New bonds and other obligations are ineligible to
7.12receive state allocations or entitlement authority for public facility projects under this
7.13section if they have been issued:
7.14(1) for the purpose of refinancing, refunding, or otherwise defeasing existing debt;
7.15and
7.16(2) more than one calendar year prior to the date of application;
7.17(b) "residential rental project bonds" which are those obligations issued to finance
7.18qualified residential rental projects;
7.19(c) "mortgage bonds";
7.20(d) "small issue bonds" issued to finance manufacturing projects and the acquisition
7.21or improvement of agricultural real or personal property under sections41C.01 to
41C.13 ;
7.22(e) "student loan bonds" issued by or on behalf of the Minnesota Office of Higher
7.23Education;
7.24(f) "redevelopment bonds";
7.25(g) "governmental bonds" with a nonqualified amount in excess of $15,000,000 as
7.26set forth in section 141(b)5 of federal tax law; and
7.27(h) "enterprise zone facility bonds" issued to finance facilities located within
7.28empowerment zones or enterprise communities, as authorized underPublic Law 103-66,
7.29section 13301 section 1394 of the Internal Revenue Code.
7.30 Sec. 11. Minnesota Statutes 2010, section 475.521, subdivision 1, is amended to read:
7.31 Subdivision 1. Definitions. For purposes of this section, the following terms have
7.32the meanings given.
7.33(a) "Bonds" mean an obligation defined under section475.51 .
7.34(b) "Capital improvement" means acquisition or betterment of public lands,
7.35buildings or other improvements for the purpose of a city hall, town hall, library, public
8.1safety facility, and public works facility. An improvement must have an expected useful
8.2life of five years or more to qualify. Capital improvement does not include light rail transit
8.3or any activity related to it, or a park, road, bridge, administrative building other than a
8.4city or town hall, or land for any of those facilities. For purposes of this section, "capital
8.5improvement" includes expenditures for purposes described in this paragraph that have
8.6been incurred by a municipality before approval of a capital improvement plan, if such
8.7expenditures are included in a capital improvement plan approved on or before the date of
8.8the public hearing under subdivision 2 regarding issuance of bonds for such expenditures.
8.9(c) "Municipality" means a home rule charter or statutory city or a town described in
8.10section368.01, subdivision 1 or 1a.
8.11 Sec. 12. Minnesota Statutes 2010, section 475.521, subdivision 2, is amended to read:
8.12 Subd. 2. Election requirement. (a) Bonds issued by a municipality to finance
8.13capital improvements under an approved capital improvements plan are not subject to the
8.14election requirements of section475.58 . The bonds must be approved by an affirmative
8.15vote of three-fifths of the members of a five-member governing body. In the case of a
8.16governing body having more or less than five members, the bonds must be approved by a
8.17vote of at least two-thirds of the members of the governing body.
8.18(b) Before the issuance of bonds qualifying under this section, the municipality must
8.19publish a notice of its intention to issue the bonds and the date and time of the hearing
8.20to obtain public comment on the matter. The notice must be published in the official
8.21newspaper of the municipality or in a newspaper of general circulation in the municipality.
8.22Additionally, the notice may be posted on the official Web site, if any, of the municipality.
8.23The notice must be published at least14 ten but not more than 28 days before the date
8.24of the hearing.
8.25(c) A municipality may issue the bonds only after obtaining the approval of a
8.26majority of the voters voting on the question of issuing the obligations, if a petition
8.27requesting a vote on the issuance is signed by voters equal to five percent of the votes cast
8.28in the municipality in the last municipal general election and is filed with the clerk within
8.2930 days after the public hearing. The commissioner of revenue shall prepare a suggested
8.30form of the question to be presented at the election. If the municipality elects not to submit
8.31the question to the voters, the municipality shall not propose the issuance of bonds under
8.32this section for the same purpose and in the same amount for a period of 365 days from the
8.33date of receipt of the petition. If the question of issuing the bonds is submitted and not
8.34approved by the voters, the provisions of section 475.58, subdivision 1a, shall apply.
9.1 Sec. 13. Minnesota Statutes 2010, section 475.521, subdivision 4, is amended to read:
9.2 Subd. 4. Limitations on amount. A municipality may not issue bonds under this
9.3section if the maximum amount of principal and interest to become due in any year on
9.4all the outstanding bonds issued under this section, including the bonds to be issued, will
9.5equal or exceed 0.16 percent of the taxable market value of property in the municipality.
9.6Calculation of the limit must be made using the taxable market value for the taxes
9.7payable year in which the obligations are issued and sold, provided that, for purposes of
9.8determining the principle and interest due in any year, the municipality may deduct the
9.9amount of interest expected to be paid or reimbursed to the municipality by the federal
9.10government in such year on any outstanding bonds or the bonds to be issued. In the
9.11case of a municipality with a population of 2,500 or more, the bonds are subject to the
9.12net debt limits under section475.53 . In the case of a shared facility in which more than
9.13one municipality participates, upon compliance by each participating municipality with
9.14the requirements of subdivision 2, the limitations in this subdivision and the net debt
9.15represented by the bonds shall be allocated to each participating municipality in proportion
9.16to its required financial contribution to the financing of the shared facility, as set forth in
9.17the joint powers agreement relating to the shared facility. This section does not limit the
9.18authority to issue bonds under any other special or general law.
9.19 Sec. 14. Minnesota Statutes 2010, section 475.54, subdivision 1, is amended to read:
9.20 Subdivision 1. In installments; exception; annual limit. Except as provided in
9.21subdivision 3, 5a, 15, or 17, or as expressly authorized in another law, all obligations of
9.22each issue shall mature orbe subject to require deposits in a mandatory sinking fund
9.23redemption in installments of principal, the first not later than three years and the last
9.24not later than 30 years from the date of the issue; or 40 years or the useful life of the
9.25asset, whichever is less, for municipal water and wastewater treatment systems and
9.26essential community facilities financed or guaranteed by the United States Department of
9.27Agriculture. No amount of principal of the issuepayable due or required to be deposited
9.28in any calendar year shall exceed an amount equal to the smallest amountpayable due or
9.29required to be deposited in any preceding calendar year ending three years or more after
9.30the issue date multiplied:
9.31(1) by five, in the case of obligations maturing not later than 25 years from the
9.32date of issue; and
9.33(2) by six, in the case of obligations maturing 25 years or later from the date of issue.
9.34 Sec. 15. Minnesota Statutes 2010, section 475.58, subdivision 3b, is amended to read:
10.1 Subd. 3b. Street reconstruction. (a) A municipality may, without regard to
10.2the election requirement under subdivision 1, issue and sell obligations for street
10.3reconstruction, if the following conditions are met:
10.4 (1) the streets are reconstructed under a street reconstruction plan that describes the
10.5street reconstruction to be financed, the estimated costs, and any planned reconstruction
10.6of other streets in the municipality over the next five years, and the plan and issuance of
10.7the obligations has been approved by a vote of all of the members of the governing body
10.8present at the meeting following a public hearing for which notice has been published in
10.9the official newspaper at least ten days but not more than 28 days prior to the hearing; and
10.10 (2) if a petition requesting a vote on the issuance is signed by voters equal to
10.11five percent of the votes cast in the last municipal general election and is filed with the
10.12municipal clerk within 30 days of the public hearing, the municipality may issue the bonds
10.13only after obtaining the approval of a majority of the voters voting on the question of the
10.14issuance of the obligations. If the municipality elects not to submit the question to the
10.15voters, the municipality shall not propose the issuance of bonds under this section for the
10.16same purpose and in the same amount for a period of 365 days from the date of receipt
10.17of the petition. If the question of issuing the bonds is submitted and not approved by the
10.18voters, the provisions of subdivision 1a, shall apply.
10.19 (b) Obligations issued under this subdivision are subject to the debt limit of the
10.20municipality and are not excluded from net debt under section475.51, subdivision 4 .
10.21 (c) For purposes of this subdivision, street reconstruction includes utility
10.22replacement and relocation and other activities incidental to the street reconstruction, turn
10.23lanes and other improvements having a substantial public safety function, realignments,
10.24other modifications to intersect with state and county roads, and the local share of state and
10.25county road projects. For purposes of this subdivision, "street reconstruction" includes
10.26expenditures for street reconstruction that have been incurred by a municipality before
10.27approval of a street reconstruction plan, if such expenditures are included in a street
10.28reconstruction plan approved on or before the date of the public hearing under paragraph
10.29(a), clause (1), regarding issuance of bonds for such expenditures.
10.30 (d) Except in the case of turn lanes, safety improvements, realignments, intersection
10.31modifications, and the local share of state and county road projects, street reconstruction
10.32does not include the portion of project cost allocable to widening a street or adding curbs
10.33and gutters where none previously existed.
1.3with certain terms and conditions; modifying definitions; making clarifying,
1.4technical, and other changes relating to the issuance of municipal bonds;
1.5amending Minnesota Statutes 2010, sections 116J.994, subdivision 2; 216C.435,
1.6subdivision 8; 216C.436, subdivisions 7, 8; 373.40, subdivisions 1, 2, 4;
1.7429.101; 474A.02, subdivisions 22b, 23a; 475.521, subdivisions 1, 2, 4; 475.54,
1.8subdivision 1; 475.58, subdivision 3b.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2010, section 116J.994, subdivision 2, is amended to
1.11read:
1.12 Subd. 2. Developing a set of criteria. A business subsidy may not be granted until
1.13the grantor has adopted criteria after a public hearing for awarding business subsidies
1.14that comply with this section. The criteria may not be adopted on a case-by-case basis.
1.15The criteria must set specific minimum requirements that recipients must meet in order
1.16to be eligible to receive business subsidies. The criteria must include a specific wage
1.17floor for the wages to be paid for the jobs created. The wage floor may be stated as a
1.18specific dollar amount or may be stated as a formula that will generate a specific dollar
1.19amount. A grantor may deviate from its criteria by documenting in writing the reason
1.20for the deviation and attaching a copy of the document to its next annual report to the
1.21department. The commissioner of employment and economic development may assist
1.22local government agencies in developing criteria. A copy of the criteria must be submitted
1.23to the Department of Employment and Economic Development along with the first annual
1.24report following May 15, 2000, or with the first annual report after it has adopted criteria,
1.25whichever is earlier.
2.1
2.2
2.3
2.4
2.5 Sec. 2. Minnesota Statutes 2010, section 216C.435, subdivision 8, is amended to read:
2.6 Subd. 8. Qualifying real property. "Qualifying real property" means a
2.7single-family or multifamily residential dwelling, or a commercial or industrial building,
2.8that the implementing entity has determined, after review of an energy audit or renewable
2.9energy system feasibility study,
2.10efficiency by installation of energy improvements.
2.11 Sec. 3. Minnesota Statutes 2010, section 216C.436, subdivision 7, is amended to read:
2.12 Subd. 7. Repayment. An implementing entity that finances an energy improvement
2.13under this section must:
2.14(1) secure payment with a lien against the
2.15(2) collect repayments as a special assessment as provided for in section
2.17annual installments.
2.18If the implementing entity is an authority, the local government that authorized
2.19the authority to act as implementing entity shall impose and collect special assessments
2.20necessary to pay debt service on bonds issued by the implementing entity under
2.21subdivision 8, and shall transfer all collections of the assessments upon receipt to the
2.22authority.
2.23 Sec. 4. Minnesota Statutes 2010, section 216C.436, subdivision 8, is amended to read:
2.24 Subd. 8. Bond issuance; repayment. (a) An implementing entity may issue
2.25
2.26of this section; provided that such improvement bonds shall be payable not more than 20
2.27years from the date of issuance.
2.28(b) The
2.29
2.30assessments established in subdivision 7.
2.31
2.32
2.33
3.1
3.2
3.3
3.4
3.5 Sec. 5. Minnesota Statutes 2010, section 373.40, subdivision 1, is amended to read:
3.6 Subdivision 1. Definitions. For purposes of this section, the following terms have
3.7the meanings given.
3.8(a) "Bonds" means an obligation as defined under section
3.9(b) "Capital improvement" means acquisition or betterment of public lands,
3.10buildings, or other improvements within the county for the purpose of a county
3.11courthouse, administrative building, health or social service facility, correctional facility,
3.12jail, law enforcement center, hospital, morgue, library, park, qualified indoor ice arena,
3.13roads and bridges, public works facilities, fairgrounds buildings, and records and data
3.14storage facilities and the acquisition of development rights in the form of conservation
3.15easements under chapter 84C. An improvement must have an expected useful life of five
3.16years or more to qualify. "Capital improvement" does not include light rail transit or any
3.17activity related to it or a recreation or sports facility building (such as, but not limited to, a
3.18gymnasium, ice arena, racquet sports facility, swimming pool, exercise room or health
3.19spa), unless the building is part of an outdoor park facility and is incidental to the primary
3.20purpose of outdoor recreation. For purposes of this section, "capital improvement"
3.21includes expenditures for purposes described in this paragraph that have been incurred by
3.22a county before approval of a capital improvement plan, if such expenditures are included
3.23in a capital improvement plan approved on or before the date of the public hearing under
3.24subdivision 2 regarding issuance of bonds for such expenditures.
3.25(c) "Metropolitan county" means a county located in the seven-county metropolitan
3.26area as defined in section
3.27(d) "Population" means the population established by the most recent of the
3.28following (determined as of the date the resolution authorizing the bonds was adopted):
3.29(1) the federal decennial census,
3.30(2) a special census conducted under contract by the United States Bureau of the
3.31Census, or
3.32(3) a population estimate made either by the Metropolitan Council or by the state
3.33demographer under section
3.34(e) "Qualified indoor ice arena" means a facility that meets the requirements of
3.35section
4.1(f) "Tax capacity" means total taxable market value, but does not include captured
4.2market value.
4.3 Sec. 6. Minnesota Statutes 2010, section 373.40, subdivision 2, is amended to read:
4.4 Subd. 2. Application of election requirement. (a) Bonds issued by a county
4.5to finance capital improvements under an approved capital improvement plan are not
4.6subject to the election requirements of section
4.7approved by vote of at least three-fifths of the members of the county board. In the case
4.8of a metropolitan county, the bonds must be approved by vote of at least two-thirds of
4.9the members of the county board.
4.10(b) Before issuance of bonds qualifying under this section, the county must publish
4.11a notice of its intention to issue the bonds and the date and time of a hearing to obtain
4.12public comment on the matter. The notice must be published in the official newspaper
4.13of the county or in a newspaper of general circulation in the county. The notice must be
4.14published at least
4.15(c) A county may issue the bonds only upon obtaining the approval of a majority of
4.16the voters voting on the question of issuing the obligations, if a petition requesting a vote
4.17on the issuance is signed by voters equal to five percent of the votes cast in the county in
4.18the last county general election and is filed with the county auditor within 30 days after
4.19the public hearing.
4.20
4.21the voters, the county shall not propose the issuance of bonds under this section for the
4.22same purpose and in the same amount for a period of 365 days from the date of receipt
4.23of the petition. If the question of issuing the bonds is submitted and not approved by the
4.24voters, the provisions of section 475.58, subdivision 1a, shall apply.
4.25 Sec. 7. Minnesota Statutes 2010, section 373.40, subdivision 4, is amended to read:
4.26 Subd. 4. Limitations on amount. A county may not issue bonds under this section
4.27if the maximum amount of principal and interest to become due in any year on all the
4.28outstanding bonds issued pursuant to this section (including the bonds to be issued) will
4.29equal or exceed 0.12 percent of taxable market value of property in the county. Calculation
4.30of the limit must be made using the taxable market value for the taxes payable year in
4.31which the obligations are issued and sold
4.32the principal and interest due in any year, the county may deduct the amount of interest
4.33expected to be paid or reimbursed to the county by the federal government in such year on
5.1any outstanding bonds or the bonds to be issued. This section does not limit the authority
5.2to issue bonds under any other special or general law.
5.3 Sec. 8. Minnesota Statutes 2010, section 429.101, is amended to read:
5.4429.101 UNPAID SPECIAL CHARGES MAY BE SPECIAL ASSESSMENTS.
5.5 Subdivision 1. Ordinances. (a) In addition to any other method authorized by
5.6law or charter, the governing body of any municipality may provide for the collection
5.7of unpaid special charges as a special assessment against the property
5.8or any part of the cost of:
5.9 (1) snow, ice, or rubbish removal from sidewalks;
5.10 (2) weed elimination from streets or private property;
5.11 (3) removal or elimination of public health or safety hazards from private property,
5.12excluding any structure included under the provisions of sections
5.13 (4) installation or repair of water service lines, street sprinkling or other dust
5.14treatment of streets;
5.15 (5) the trimming and care of trees and the removal of unsound trees from any street;
5.16 (6) the treatment and removal of insect infested or diseased trees on private property,
5.17the repair of sidewalks and alleys;
5.18 (7) the operation of a street lighting system;
5.19 (8) the operation and maintenance of a fire protection or a pedestrian skyway system;
5.20 (9) inspections relating to a municipal housing maintenance code violation;
5.21 (10) the recovery of any disbursements under section
5.22clause (5), including disbursements for payment of utility bills and other services, even if
5.23provided by a third party, necessary to remedy violations as described in section
5.24subdivision 4
5.25 (11) [Repealed, 2004 c 275 s 5]
5.26 (12) the recovery of delinquent vacant building registration fees under a municipal
5.27program designed to identify and register vacant buildings.
5.28 (b) The council may by ordinance adopt regulations consistent with this section to
5.29make this authority effective, including, at the option of the council, provisions for placing
5.30primary responsibility upon the property owner or occupant to do the work personally
5.31(except in the case of street sprinkling or other dust treatment, alley repair, tree trimming,
5.32care, and removal, or the operation of a street lighting system) upon notice before the work
5.33is undertaken, and for collection from the property owner or other person served of the
5.34charges when due before unpaid charges are made a special assessment.
6.1(c) A home rule charter city, statutory city, county, or town operating an energy
6.2improvements financing program under section
6.3municipality under paragraph (a) with respect to energy improvements financed under
6.4that section.
6.5 Subd. 2. Procedure for assessment. Any special assessment levied under
6.6subdivision 1 shall be payable in a single installment, or by up to ten equal annual
6.7installments as the council may provide. With this exception, sections
6.8and
6.9levied under subdivision 1, the municipality shall not be required to demonstrate that
6.10the value of the property is increased or that the property is otherwise benefited by the
6.11special charges described in subdivision 1.
6.12 Subd. 3. Issuance of obligations. (a) After a contract for any of the work
6.13enumerated in subdivision 1 has been let, or the work commenced, the council may
6.14issue
6.15in whole or in part by special charges and assessments imposed upon
6.16under this section.
6.17(b) Section
6.18following modifications:
6.19(1) such
6.20years from the date of issuance, or six months following the last installment of the special
6.21assessments levied as provided in subdivisions 1 and 2, whichever is later;
6.22(2) the amount of such
6.23bonds for energy improvements described in subdivision 1, paragraph (c), which are
6.24limited by section 216C.436, issued at one time in a municipality shall not exceed the cost
6.25of such work during the ensuing six months as estimated by the council;
6.26(3) a separate improvement fund shall be set up for each of the enumerated services
6.27referred to in subdivision 1 and financed under this section.
6.28(c) Proceeds of special charges as well as special assessments and taxes shall be
6.29credited to such improvement fund.
6.30 Sec. 9. Minnesota Statutes 2010, section 474A.02, subdivision 22b, is amended to read:
6.31 Subd. 22b. Public facilities project. "Public facilities project" means any
6.32
6.33
6.34bonds as defined under
7.1 Sec. 10. Minnesota Statutes 2010, section 474A.02, subdivision 23a, is amended to
7.2read:
7.3 Subd. 23a. Qualified bonds. "Qualified bonds" means the specific type or types
7.4of obligations that are subject to the annual volume cap. Qualified bonds include the
7.5following types of obligations as defined in federal tax law:
7.6(a) "public facility bonds" means "exempt facility bonds" as defined in federal
7.7tax law, except for residential rental project bonds
7.8
7.9
7.10
7.11
7.12receive state allocations or entitlement authority for public facility projects under this
7.13section if they have been issued:
7.14(1) for the purpose of refinancing, refunding, or otherwise defeasing existing debt;
7.15and
7.16(2) more than one calendar year prior to the date of application;
7.17(b) "residential rental project bonds" which are those obligations issued to finance
7.18qualified residential rental projects;
7.19(c) "mortgage bonds";
7.20(d) "small issue bonds" issued to finance manufacturing projects and the acquisition
7.21or improvement of agricultural real or personal property under sections
7.22(e) "student loan bonds" issued by or on behalf of the Minnesota Office of Higher
7.23Education;
7.24(f) "redevelopment bonds";
7.25(g) "governmental bonds" with a nonqualified amount in excess of $15,000,000 as
7.26set forth in section 141(b)5 of federal tax law; and
7.27(h) "enterprise zone facility bonds" issued to finance facilities located within
7.28empowerment zones or enterprise communities, as authorized under
7.29
7.30 Sec. 11. Minnesota Statutes 2010, section 475.521, subdivision 1, is amended to read:
7.31 Subdivision 1. Definitions. For purposes of this section, the following terms have
7.32the meanings given.
7.33(a) "Bonds" mean an obligation defined under section
7.34(b) "Capital improvement" means acquisition or betterment of public lands,
7.35buildings or other improvements for the purpose of a city hall, town hall, library, public
8.1safety facility, and public works facility. An improvement must have an expected useful
8.2life of five years or more to qualify. Capital improvement does not include light rail transit
8.3or any activity related to it, or a park, road, bridge, administrative building other than a
8.4city or town hall, or land for any of those facilities. For purposes of this section, "capital
8.5improvement" includes expenditures for purposes described in this paragraph that have
8.6been incurred by a municipality before approval of a capital improvement plan, if such
8.7expenditures are included in a capital improvement plan approved on or before the date of
8.8the public hearing under subdivision 2 regarding issuance of bonds for such expenditures.
8.9(c) "Municipality" means a home rule charter or statutory city or a town described in
8.10section
8.11 Sec. 12. Minnesota Statutes 2010, section 475.521, subdivision 2, is amended to read:
8.12 Subd. 2. Election requirement. (a) Bonds issued by a municipality to finance
8.13capital improvements under an approved capital improvements plan are not subject to the
8.14election requirements of section
8.15vote of three-fifths of the members of a five-member governing body. In the case of a
8.16governing body having more or less than five members, the bonds must be approved by a
8.17vote of at least two-thirds of the members of the governing body.
8.18(b) Before the issuance of bonds qualifying under this section, the municipality must
8.19publish a notice of its intention to issue the bonds and the date and time of the hearing
8.20to obtain public comment on the matter. The notice must be published in the official
8.21newspaper of the municipality or in a newspaper of general circulation in the municipality.
8.22Additionally, the notice may be posted on the official Web site, if any, of the municipality.
8.23The notice must be published at least
8.24of the hearing.
8.25(c) A municipality may issue the bonds only after obtaining the approval of a
8.26majority of the voters voting on the question of issuing the obligations, if a petition
8.27requesting a vote on the issuance is signed by voters equal to five percent of the votes cast
8.28in the municipality in the last municipal general election and is filed with the clerk within
8.2930 days after the public hearing.
8.30
8.31the question to the voters, the municipality shall not propose the issuance of bonds under
8.32this section for the same purpose and in the same amount for a period of 365 days from the
8.33date of receipt of the petition. If the question of issuing the bonds is submitted and not
8.34approved by the voters, the provisions of section 475.58, subdivision 1a, shall apply.
9.1 Sec. 13. Minnesota Statutes 2010, section 475.521, subdivision 4, is amended to read:
9.2 Subd. 4. Limitations on amount. A municipality may not issue bonds under this
9.3section if the maximum amount of principal and interest to become due in any year on
9.4all the outstanding bonds issued under this section, including the bonds to be issued, will
9.5equal or exceed 0.16 percent of the taxable market value of property in the municipality.
9.6Calculation of the limit must be made using the taxable market value for the taxes
9.7payable year in which the obligations are issued and sold, provided that, for purposes of
9.8determining the principle and interest due in any year, the municipality may deduct the
9.9amount of interest expected to be paid or reimbursed to the municipality by the federal
9.10government in such year on any outstanding bonds or the bonds to be issued. In the
9.11case of a municipality with a population of 2,500 or more, the bonds are subject to the
9.12net debt limits under section
9.13one municipality participates, upon compliance by each participating municipality with
9.14the requirements of subdivision 2, the limitations in this subdivision and the net debt
9.15represented by the bonds shall be allocated to each participating municipality in proportion
9.16to its required financial contribution to the financing of the shared facility, as set forth in
9.17the joint powers agreement relating to the shared facility. This section does not limit the
9.18authority to issue bonds under any other special or general law.
9.19 Sec. 14. Minnesota Statutes 2010, section 475.54, subdivision 1, is amended to read:
9.20 Subdivision 1. In installments; exception; annual limit. Except as provided in
9.21subdivision 3, 5a, 15, or 17, or as expressly authorized in another law, all obligations of
9.22each issue shall mature or
9.23
9.24not later than 30 years from the date of the issue; or 40 years or the useful life of the
9.25asset, whichever is less, for municipal water and wastewater treatment systems and
9.26essential community facilities financed or guaranteed by the United States Department of
9.27Agriculture. No amount of principal of the issue
9.28in any calendar year shall exceed an amount equal to the smallest amount
9.29required to be deposited in any preceding calendar year ending three years or more after
9.30the issue date multiplied:
9.31(1) by five, in the case of obligations maturing not later than 25 years from the
9.32date of issue; and
9.33(2) by six, in the case of obligations maturing 25 years or later from the date of issue.
9.34 Sec. 15. Minnesota Statutes 2010, section 475.58, subdivision 3b, is amended to read:
10.1 Subd. 3b. Street reconstruction. (a) A municipality may, without regard to
10.2the election requirement under subdivision 1, issue and sell obligations for street
10.3reconstruction, if the following conditions are met:
10.4 (1) the streets are reconstructed under a street reconstruction plan that describes the
10.5street reconstruction to be financed, the estimated costs, and any planned reconstruction
10.6of other streets in the municipality over the next five years, and the plan and issuance of
10.7the obligations has been approved by a vote of all of the members of the governing body
10.8present at the meeting following a public hearing for which notice has been published in
10.9the official newspaper at least ten days but not more than 28 days prior to the hearing; and
10.10 (2) if a petition requesting a vote on the issuance is signed by voters equal to
10.11five percent of the votes cast in the last municipal general election and is filed with the
10.12municipal clerk within 30 days of the public hearing, the municipality may issue the bonds
10.13only after obtaining the approval of a majority of the voters voting on the question of the
10.14issuance of the obligations. If the municipality elects not to submit the question to the
10.15voters, the municipality shall not propose the issuance of bonds under this section for the
10.16same purpose and in the same amount for a period of 365 days from the date of receipt
10.17of the petition. If the question of issuing the bonds is submitted and not approved by the
10.18voters, the provisions of subdivision 1a, shall apply.
10.19 (b) Obligations issued under this subdivision are subject to the debt limit of the
10.20municipality and are not excluded from net debt under section
10.21 (c) For purposes of this subdivision, street reconstruction includes utility
10.22replacement and relocation and other activities incidental to the street reconstruction, turn
10.23lanes and other improvements having a substantial public safety function, realignments,
10.24other modifications to intersect with state and county roads, and the local share of state and
10.25county road projects. For purposes of this subdivision, "street reconstruction" includes
10.26expenditures for street reconstruction that have been incurred by a municipality before
10.27approval of a street reconstruction plan, if such expenditures are included in a street
10.28reconstruction plan approved on or before the date of the public hearing under paragraph
10.29(a), clause (1), regarding issuance of bonds for such expenditures.
10.30 (d) Except in the case of turn lanes, safety improvements, realignments, intersection
10.31modifications, and the local share of state and county road projects, street reconstruction
10.32does not include the portion of project cost allocable to widening a street or adding curbs
10.33and gutters where none previously existed.
