Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 2001, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 214-S.F.No. 2208
An act relating to public finance; updating and making
technical changes to public finance and related
provisions related to county and county-supported
hospitals, municipally owned nursing homes, lake
improvement districts, and the metropolitan council;
extending a sunset date for certain county capital
improvement bonds and limiting the inclusiveness of
capital improvements; removing election requirements
as preconditions for issuance of certain obligations;
requiring reverse referenda in certain cases;
clarifying the effect of a state guaranty as not
creating constitutional public debt of the state;
authorizing some flexibility in stating certain ballot
questions; authorizing Scott and Carver counties to
grant certain economic development powers to their
housing and redevelopment authorities; authorizing the
Chisago Lakes joint sewage treatment commission to
issue bonds; authorizing expanded funding by the
county for certain multijurisdictional program
activities in Hennepin county; authorizing Hassan
township to create and empower an economic development
authority; updating and changing the Minnesota Bond
Allocation Act; amending Minnesota Statutes 2000,
sections 103B.555, by adding a subdivision; 165.10,
subdivision 2; 275.60; 373.45, subdivision 3; 376.06,
subdivision 1; 376.07; 376.08, subdivisions 1, 2;
376.09; 383B.79, by adding a subdivision; 429.091,
subdivision 7a; 473.39, by adding a subdivision;
474A.02, subdivisions 8, 13a, 22a, 22b, 23a; 474A.03,
subdivisions 1, 2a, 4; 474A.04, subdivisions 1a, 5;
474A.045; 474A.047, subdivisions 1, 2; 474A.061,
subdivisions 1, 2a, 2b, 2c, 4; 474A.091, subdivisions
2, 3, 4, 5, 6, by adding a subdivision; 474A.131,
subdivisions 1, 2, by adding a subdivision; 474A.14;
475.54, subdivision 1; 475.58, subdivision 1; 475.59;
amending Laws 1974, chapter 473; Laws 1980, chapter
482; proposing coding for new law in Minnesota
Statutes, chapters 474A; repealing Minnesota Statutes
2000, sections 373.40, subdivision 7; 376.03;
474A.061, subdivision 6.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 2000, section 103B.555, is
amended by adding a subdivision to read:
Subd. 4. [DISTRICT OBLIGATIONS.] The district, with
approval of the county board or joint county authority,
expressed in a resolution identifying each specific improvement
to which the approval applies, may exercise the powers of a city
under chapter 429 and section 444.075, including, but not
limited to:
(1) the levy of special assessments;
(2) the imposition of rates and charges; and
(3) the issuance of bonds
to finance improvements that the district may undertake.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 2. Minnesota Statutes 2000, section 165.10,
subdivision 2, is amended to read:
Subd. 2. [BONDS ISSUED, SOLD, AND RETIRED.] Such bonds
shall be general obligations of the county and issued, sold, and
retired in the manner provided in chapter 475.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 3. Minnesota Statutes 2000, section 275.60, is
amended to read:
275.60 [LEVY OR BOND REFERENDUM; BALLOT NOTICE.]
(a) Notwithstanding any general or special law or any
charter provisions, but subject to section 126C.17, subdivision
9, any question submitted to the voters by any local
governmental subdivision at a general or special election after
June 8, 1995, authorizing a property tax levy or tax rate
increase, including the issuance of debt obligations payable in
whole or in part from property taxes, must include on the ballot
the following notice in boldface type.:
"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
FOR A PROPERTY TAX INCREASE."
(b) For purposes of this section and section 275.61, "local
governmental subdivision" includes counties, home rule and
statutory cities, towns, school districts, and all special
taxing districts. This statement is in addition to any general
or special laws or any charter provisions that govern the
contents of a ballot question and, in the case of a question on
the issuance of debt obligations, may be supplemented by a
description of revenues pledged to payment of the obligations
that are intended as the primary source of payment.
(c) This section does not apply to a school district bond
election if the debt service payments are to be made entirely
from transfers of revenue from the capital fund to the debt
service fund.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 4. Minnesota Statutes 2000, section 373.45,
subdivision 3, is amended to read:
Subd. 3. [AGREEMENT.] (a) In order For specified debt
obligations of a county to be covered by the provisions of this
section, the county must enter an agreement with the authority
obligating the county to be bound by the provisions of this
section.
(b) This agreement must be in a form prescribed by the
authority and contain any provisions required by the authority,
including, at least, an obligation to:
(1) deposit with the paying agent three days before the
date on which the payment is due an amount sufficient to make
that payment;
(2) notify the authority, if the county will be unable to
make all or a portion of the payment; and
(3) include a provision in the bond resolution and county's
agreement with the paying agent for the debt obligation that
requires the paying agent to inform the commissioner if it
becomes aware of a default or potential default in the payment
of principal or interest on that issue or if, on the day two
business days before the date a payment is due on that issue,
there are insufficient funds to make the payment on deposit with
the paying agent.
(c) Funds invested in a refunding escrow account
established under section 475.67 that are to become available to
the paying agent on a principal or interest payment date are
deemed to be on deposit with the paying agent three business
days before the payment date.
(b) (d) The provisions of an agreement under this
subdivision are binding as to an issue as long as any debt
obligation of the issue remains outstanding.
(c) (e) This section is a contract with bondholders and may
not be amended or repealed for the covered bonds so long as the
covered bonds are outstanding and the obligations of the state
under this section are not a public debt of the state under
article XI, section 4, of the Minnesota Constitution, and the
legislature may, at any time, choose not to appropriate amounts
under subdivision 4, paragraph (b).
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 5. Minnesota Statutes 2000, section 376.06,
subdivision 1, is amended to read:
Subdivision 1. [PROCEDURE, POWERS, PAY, ELECTION.] A
county board which has purchased and constructed buildings for
hospital purposes may operate these buildings as a hospital and
may appoint a superintendent. The board shall set the
superintendent's salary, term of employment, and powers and
duties; provide for the management and operation of the
hospital; and operate, control, and manage the hospital. The
superintendent shall serve at the pleasure of the board. If the
board determines that it is in the public interest, it may
appoint a hospital board of at least three, but not more than
nine members, who must be county residents and landowners, to
serve may include some or all of the county commissioners except
as otherwise provided in subdivision 2. Persons appointed to
the hospital board must reside in the hospital's service area
and 80 percent of the board members, including any commissioners
appointed to serve on the hospital board, must be residents of
the county. The hospital board serves without compensation
unless the county board authorizes the payment of compensation
and reimbursement of expenses for service on the hospital
board. Notwithstanding section 375.44, if compensation and
reimbursement are authorized, they shall be the same as
authorized for service on the local social services agency.
Subject to its supervision, the county board may commit the
care, management, and operation of the hospital to the hospital
board. The county board may provide for the organization and
regulation of the hospital board, its duties and the duties of
the members, and regulations for the management, operation, and
control of the hospital. The county board may lease the
hospital grounds and buildings to a hospital association
nonprofit or governmental hospital organization for terms it
considers advisable. Sections 376.01 to 376.06 do not permit
any county board to purchase and construct any hospital
buildings or to pay for them without first submitting the
question to the vote of the people. No purchase or construction
of buildings or payment may be made unless a majority of the
electors voting upon the proposition vote in favor.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 6. Minnesota Statutes 2000, section 376.07, is
amended to read:
376.07 [ADDITION TO COUNTY HOSPITAL.]
When the county board of a county has been authorized by
the voters to construct an addition to the county hospital of
the county under sections 376.01 to 376.06, whether or not also
authorized to equip the addition, and the board has determined
that the addition, whether with or without equipment, cannot be
completed within the cost authorized, or has determined that, to
complete the improvement, certain alterations should be made, or
fixtures or equipment added, either in the original building, or
in the addition, or both, the board may be authorized to spend a
specified additional amount for any of the purposes mentioned in
this chapter, either by vote of the people of the county at a
general or special election or by petition. If an election is
held, the proposition shall be submitted and disposed of in the
same manner as provided by sections 376.01 to 376.06. If by
petition, the petition must be signed by a majority of those
voting at the last preceding general election. The petition may
be in the form of one document or of several documents in the
same form, and shall be filed with the county auditor. A
special election may be called in the manner provided for
calling special county elections. When authority is granted by
the voters, in either manner provided, the board may proceed
accordingly. If the board made or attempted to make a contract
or contracts for more than the authority first granted, it may
ratify and carry out the contracts. The county board, hospital
board, or board of directors of a nonprofit or governmental
hospital organization that has leased a county hospital may
authorize the remodeling, improvement, alteration, or
construction of an addition to the county hospital or of another
building on the county hospital's existing premises by a
majority vote of the board. Financing for any project under
this section is governed by other law, including sections 373.40
and 447.45 and chapter 475.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 7. Minnesota Statutes 2000, section 376.08,
subdivision 1, is amended to read:
Subdivision 1. [APPROPRIATIONS.] Except as provided in
subdivision 2, the board of county commissioners in any county
with a population of 50,000 or less may appropriate up to
$65,000 annually from the general revenue fund of the county for
the acquisition of lands for hospital purposes, and the
construction, improvement, alterations, equipment and
maintenance of hospitals within the county, including public or
nonprofit hospitals that are not county hospitals. The board
may also appropriate up to $25,000 from the general revenue fund
of the county for the acquisition of land and construction of
municipally owned nursing homes within the county.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 8. Minnesota Statutes 2000, section 376.08,
subdivision 2, is amended to read:
Subd. 2. [REMODELING OR ADDITIONS.] A county hospital may
by majority vote of its board of commissioners, or if the
hospital has been leased to another entity under section 376.06,
subdivision 1, or 447.47, by majority vote of the board of
directors of that entity, enter into projects for the
construction of an addition or remodeling to its presently
existing facility or the acquisition of equipment as described
in this subdivision without complying with the dollar limitation
of subdivision 1 or the election requirements of section
376.03. This subdivision applies only to projects in which the
funds for the project are derived from dedicated, restricted, or
other designated accounts or, from the hospital's depreciation
fund and do not require incurring debt by the county through, or
from the issuance of bonds or otherwise authorized under other
law. An addition to a current hospital under this subdivision
may include construction of buildings physically separate from
the present hospital building, as well as additions to the
present building, if the new buildings are constructed on the
hospital's existing premises.
This subdivision does not affect the ability of the
hospital board to approve funds for improvements or remodeling
of a hospital facility under other law.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 9. Minnesota Statutes 2000, section 376.09, is
amended to read:
376.09 [AID TO HOSPITALS IN COUNTIES HAVING NO COUNTY
HOSPITAL.]
In any county in which there is no county hospital, or a
county hospital is leased to a nonprofit or governmental
hospital organization pursuant to section 376.06, subdivision 1,
or 447.47, the county board may appropriate and pay money from
the general fund of the county, for the construction,
maintenance, and operation of a private, nonprofit, or public
hospital in the county for the treatment of sick, diseased, and
injured persons. Admission preference shall always be given to
patients who are, in whole or in part, public charges, and are
sent to the hospital by the county board.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 10. Minnesota Statutes 2000, section 383B.79, is
amended by adding a subdivision to read:
Subd. 5. [FINANCING.] Hennepin county may appropriate
funds for any of the activities described in subdivision 1,
whether or not state funds are appropriated for the activity.
Hennepin county may include any part of the costs of a project
described in section 469.002, subdivision 12, in a capital
improvement plan adopted under section 373.40, and may issue
bonds for such purposes pursuant to and subject to the
procedures and limitations set forth in section 373.40, whether
or not the capital improvement to be financed is to be owned by
the county or any other governmental entity. Such purposes are
in addition to the capital improvements described in section
373.40, but shall not include light rail transit, commuter rail,
or any activity related to either of those, or a sports facility
building designed or used primarily for professional sports. No
funds appropriated under this subdivision may be used to pay
operating expenses.
Sec. 11. Minnesota Statutes 2000, section 429.091,
subdivision 7a, is amended to read:
Subd. 7a. [REVOLVING FUND BONDS.] The council may by
resolution establish a revolving fund for the payment of the
costs of any improvement or any waterworks systems, sewer
systems, or storm sewer systems described in section 444.075,
the costs of facilities to maintain streets and water, sewer,
and storm sewer systems and for the payment of any obligations
issued to pay the costs thereof of the facilities and systems
referred to in this subdivision or to refund obligations issued
for those purposes. The council may create within the revolving
fund a separate construction account into which the municipality
may deposit the proceeds of any obligations payable from the
fund, the proceeds of any special assessments collected with
respect to any improvement, any net revenues of a waterworks,
sewer system, or storm sewer system described in section 444.075
or any other available funds of the municipality appropriated to
it. Amounts on deposit in the construction account may be used
to pay the costs of any improvement or any waterworks, sewer
system, or storm sewer system described in section 444.075 or
any street or water, sewer, or storm sewer maintenance
facilities. No funds may be expended for an improvement unless
at least 20 percent of the costs of each such improvement is to
be assessed against benefited property. No funds may be
expended for a waterworks, sewer system, or storm sewer system,
other than a sewer system described in section 115.46, or
maintenance facilities unless the council estimates that the
costs will be recovered from the net revenues of the system or
any combined waterworks, sewer systems, or storm sewer systems
operated by the municipality. The council may also create a
separate debt service account within the revolving fund for the
payment of principal of and interest on any obligations payable
therefrom. Notwithstanding subdivision 4, the council is not
required to pledge any particular assessments or other revenues
to the payment of the obligations. Collections of special
assessments or net revenues may be deposited in either the
construction account or the debt service account as the council
or an officer designated by the council may determine, having
due regard for anticipated collections of special assessments
and net revenues from improvements or waterworks, sewer systems,
or storm sewer systems financed in whole or in part from the
construction account, and taxes levied for the payment of the
obligations. The council may issue obligations that are payable
primarily from the debt service account for the purpose of
providing funds to defray in whole or in part any expenses
incurred or estimated to be incurred in making the improvement
or improvements or in constructing the waterworks, sewer system,
or storm sewer system, including every item of cost of the kinds
authorized by section 475.65, and street and water, sewer, and
storm sewer maintenance facilities or to refund obligations
previously issued under this section or section 115.46 or
444.075. The obligations may be general obligations to which
the full faith and credit of the municipality are pledged. If
the special assessments to be levied and net revenues estimated
to be available for their payment are estimated to be at least
20 percent of the principal amount of the obligations, the
obligations may be issued without an election and shall not be
included in determining the net indebtedness of the municipality
under the provisions of any law limiting net indebtedness. The
cost of a maintenance facility that may be financed under this
subdivision is limited only to the portion of the facility that
is fairly allocable to the maintenance of streets and water,
sewer, and storm sewer systems.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 12. Minnesota Statutes 2000, section 473.39, is
amended by adding a subdivision to read:
Subd. 1h. [OBLIGATIONS.] After July 1, 2001, in addition
to the authority in subdivisions 1a, 1b, 1c, 1d, 1e, and 1g, the
council may issue certificates of indebtedness, bonds, or other
obligations under this section in an amount not exceeding
$45,000,000 for capital expenditures as prescribed in the
council's regional transit master plan and transit capital
improvement program and for related costs, including the costs
of issuance and sale of the obligations, but not for computer
software, or for construction, maintenance, or operation of
light rail transit or commuter rail.
[EFFECTIVE DATE; APPLICATION.] This section is effective
the day following final enactment and applies in the counties of
Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
Sec. 13. Minnesota Statutes 2000, section 474A.02,
subdivision 8, is amended to read:
Subd. 8. [FEDERAL TAX LAW.] "Federal tax law" means those
provisions of the Internal Revenue Code of 1986, as
amended through December 31, 1990, that limit the aggregate
amount of obligations of a specified type or types which may be
issued by an issuer during a calendar year whose interest is
excluded from gross income for purposes of federal income
taxation.
Sec. 14. Minnesota Statutes 2000, section 474A.02,
subdivision 13a, is amended to read:
Subd. 13a. [SMALL ISSUE POOL.] "Small issue pool" means
the amount of the annual volume cap allocated under section
474A.061, that is available for the issuance of enterprise zone
facility bonds authorized under Public Law Number 103-66,
section 13301, small issue bonds to finance manufacturing
projects, and the agricultural development bond beginning farmer
and agricultural business enterprise loan program authorized in
sections 41C.01 to 41C.13, and student loan bonds issued by the
Minnesota higher education services office.
Sec. 15. Minnesota Statutes 2000, section 474A.02,
subdivision 22a, is amended to read:
Subd. 22a. [PUBLIC FACILITIES POOL.] "Public facilities
pool" means the amount of the annual volume cap allocated under
section 474A.061, which is available for the issuance of public
facility bonds or student loan bonds.
Sec. 16. Minnesota Statutes 2000, section 474A.02,
subdivision 22b, is amended to read:
Subd. 22b. [PUBLIC FACILITIES PROJECT.] "Public facilities
project" means any publicly owned facility, or facility owned by
a nonprofit organization that is used for district heating or
cooling, that is eligible to be financed with the proceeds of
public facilities bonds as defined under section 474A.02,
subdivision 23a.
Sec. 17. Minnesota Statutes 2000, section 474A.02,
subdivision 23a, is amended to read:
Subd. 23a. [QUALIFIED BONDS.] "Qualified bonds" means the
specific type or types of obligations that are subject to the
annual volume cap. Qualified bonds include the following types
of obligations as defined in federal tax law:
(a) "public facility bonds" means "exempt facility bonds"
as defined in federal tax law, except for residential rental
project bonds, which are those obligations issued to finance
airports, docks and wharves, mass commuting facilities,
facilities for the furnishing of water, sewage facilities, solid
waste disposal facilities, facilities for the local furnishing
of electric energy or gas, local district heating or cooling
facilities, and qualified hazardous waste facilities. New bonds
and other obligations are ineligible to receive state
allocations or entitlement authority for public facility
projects under this section if they have been issued:
(1) for the purpose of refinancing, refunding, or otherwise
defeasing existing debt; and
(2) more than one calendar year prior to the date of
application;
(b) "residential rental project bonds" which are those
obligations issued to finance qualified residential rental
projects;
(c) "mortgage bonds";
(d) "small issue bonds" issued to finance manufacturing
projects and the acquisition or improvement of agricultural real
or personal property under sections 41C.01 to 41C.13;
(e) "student loan bonds" issued by or on behalf of the
Minnesota higher education services office;
(f) "redevelopment bonds";
(g) "governmental bonds" with a nonqualified amount in
excess of $15,000,000 as set forth in section 141(b)5 of federal
tax law; and
(h) "enterprise zone facility bonds" issued to finance
facilities located within empowerment zones or enterprise
communities, as authorized under Public Law Number 103-66,
section 13301.
Sec. 18. Minnesota Statutes 2000, section 474A.03,
subdivision 1, is amended to read:
Subdivision 1. [UNDER FEDERAL TAX LAW; ALLOCATIONS.] At
the beginning of each calendar year after December 31, 1997
2001, the commissioner shall determine the aggregate dollar
amount of the annual volume cap under federal tax law for the
calendar year, and of this amount the commissioner shall make
the following allocation:
(1) $63,000,000 $74,530,000 to the small issue pool;
(2) $59,000,000 $122,060,000 to the housing pool,
$37,000,000 of which 31 percent of the adjusted allocation is
reserved until the day after the first last Monday in February
July for single-family housing programs;
(3) $10,500,000 $12,750,000 to the public facilities pool;
and
(4) amounts to be allocated as provided in subdivision 2a.
If the annual volume cap is greater or less than the amount
of bonding authority allocated under clauses (1) to (4) and
subdivision 2a, paragraph (a), clauses (1) to (4), the
allocation must be adjusted so that each adjusted allocation is
the same percentage of the annual volume cap as each original
allocation is of the total bonding authority originally
allocated.
Sec. 19. Minnesota Statutes 2000, section 474A.03,
subdivision 2a, is amended to read:
Subd. 2a. [ENTITLEMENT ISSUER ALLOCATION.] (a) The
commissioner shall make the following allocation to the
Minnesota housing finance agency and the following cities and
county:
(1) $53,750,000 $84,940,000 per year to the Minnesota
housing finance agency, less any amount received in the previous
year under section 474A.091, subdivision 6;
(2) $21,000,000 $33,190,000 per year to the city of
Minneapolis;
(3) $15,750,000 $24,890,000 per year to the city of Saint
Paul; and
(4) $10,500,000 $16,600,000 per year to the Dakota county
community development agency for the county of Dakota and all
political subdivisions located within the county.
(b) Entitlement allocations provided under this subdivision
must be used for mortgage bonds, mortgage credit certificates,
public facility bonds, or residential rental project bonds,
except that entitlement issuers may also use their allocations
for public facility bonds, and may carry forward their
allocations for any qualified bond as defined under section
474A.02, subdivision 23a.
(c) Data on the home purchase price amount, mortgage
amount, income, household size, and race of the households
served with the proceeds of mortgage revenue bonds and mortgage
credit certificates in the previous year must be submitted by
each entitlement issuer to the Minnesota housing finance agency
by December 31 of each year. Compliance by the Minnesota
housing finance agency with the provisions of section 462A.073,
subdivision 5, shall be deemed compliance with the reporting
requirements of this subdivision.
Sec. 20. Minnesota Statutes 2000, section 474A.03,
subdivision 4, is amended to read:
Subd. 4. [APPLICATION FEE.] Every entitlement issuer and
other issuer shall pay to the commissioner a nonrefundable
application fee to offset the state cost of program
administration. The application fee is $20 for each $100,000 of
entitlement or allocation requested, with the request rounded to
the nearest $100,000. The minimum fee is $20. Fees received by
the commissioner must be credited to the general fund.
Application fees for projects of entitlement issuers must be
submitted to the commissioner with the notice of issuance of
bonds, notice of use of mortgage credit certificates, and notice
of carry forward. Each entitlement issuer must pay its
application fee in full for that calendar year to the
commissioner no later than when the first notice of issuance of
bonds, notice of use of mortgage credit certificates, or notice
of carry forward is submitted to the commissioner by that issuer.
Sec. 21. Minnesota Statutes 2000, section 474A.04,
subdivision 1a, is amended to read:
Subd. 1a. [ENTITLEMENT RESERVATIONS; CARRYFORWARD;
DEDUCTION.] Any amount returned by an entitlement issuer before
July 15 shall be reallocated through the housing pool. Any
amount returned on or after July 15 shall be reallocated through
the unified pool. An amount returned after the last Monday in
November shall be reallocated to the Minnesota housing finance
agency. Any amount of bonding authority that an entitlement
issuer carries forward under federal tax law that is not
permanently issued or for which the governing body of the
entitlement issuer has not enacted a resolution electing to use
the authority for mortgage credit certificates by July 15 and
has not provided a notice of issue to the commissioner before
4:30 p.m. on the last business day in December of the succeeding
calendar year shall be deducted from the entitlement allocation
for that entitlement issuer for the current calendar year. Any
amount deducted from an entitlement issuer's allocation under
this subdivision shall be reallocated through the unified pool.
An entitlement issuer must permanently issue all carryforward
authority or enact a resolution electing to use all carryforward
authority for mortgage credit certificates prior to issuing any
current year authority of that entitlement issuer in the next
succeeding calendar year. Any amount deducted from an
entitlement issuer's allocation under this subdivision shall be
reallocated to other entitlement issuers, the housing pool, the
small issue pool, and the public facilities pool on a
proportional basis consistent with section 474A.03.
Sec. 22. Minnesota Statutes 2000, section 474A.04,
subdivision 5, is amended to read:
Subd. 5. [NOTICE OF ENTITLEMENT ALLOCATION.] As soon as
possible in each calendar year, the commissioner shall provide
to each entitlement issuer a written notice of the amount of its
post on the department's Web site the amount of each entitlement
allocation.
Sec. 23. Minnesota Statutes 2000, section 474A.045, is
amended to read:
474A.045 [SCORING SYSTEM FOR ENTERPRISE ZONE FACILITY
PROJECTS AND MANUFACTURING PROJECTS.]
The following criteria must be used in determining the
allocation of enterprise zone facility bonds and small issue
bonds for manufacturing projects. The issuer must prepare and
submit to the commissioner a public purpose scoring worksheet
that presents the data and methods used in determining the total
score under this section. The total score is the sum of the
following:
(1) the number of direct new jobs in the state generated by
the proposed project for the next two years per $100,000 of
proposed allocation multiplied by 15;
(2) the number of direct existing jobs in the state
multiplied by .625 due to the proposed project for the next two
years per $100,000 of proposed allocation multiplied by 15;
(3) the average hourly wage paid to employees by the
proposed project for the next two years, exclusive of benefits
mandated by law, based on the following scale:
Wages paid per hour $ 8 $10 $12 $15
Non-Metro area points awarded 10 15 20 20
Seven-County Metro Area
points awarded 0 10 15 20
For purposes of this section, the seven-county metropolitan
area includes Anoka, Carver, Dakota, Hennepin, Ramsey, Scott,
and Washington counties;
(4) the quotient of the estimated total net increase in
property taxes generated in the state by the project in the
first full year of operation divided by the proposed bond
allocation, multiplied by 500; and
(5) the seasonally unadjusted unemployment rate in the
community where the proposed project is located measured as a
percent of the state's unemployment rate, multiplied by ten.
The community seasonally unadjusted unemployment rate used
in determining the points under clause (5) must be the most
recent rate for the city or county in which the proposed project
is located, as provided by the commissioner of economic security.
(6) 20 points for projects that locate in an incorporated
area or a planned urban growth area as defined by section
462.352, subdivision 18;
(7) 20 points for brownfield projects located in a state or
federal Superfund site, a voluntary investigation and cleanup
site, or a brownfield site, all as defined by the Minnesota
pollution control agency; and
(8) 20 points for projects with favorable environmental
citizenship as evidenced by no nonforgivable or combination
administrative penalty orders, stipulation agreements, consent
decrees, or other enforcement orders containing a monetary
penalty by the Minnesota pollution control agency over the past
three years or pending at the time of application.
Sec. 24. Minnesota Statutes 2000, section 474A.047,
subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY.] (a) An issuer may only use
the proceeds from residential rental bonds if the proposed
project meets one of the following requirements:
(1) the proposed project is a single room occupancy project
and all the units of the project will be occupied by individuals
whose incomes at the time of their initial residency in the
project are 50 percent or less of the greater of the statewide
or county median income adjusted for household size as
determined by the federal Department of Housing and Urban
Development;
(2) the proposed project is a multifamily project where at
least 75 percent of the units have two or more bedrooms and at
least one-third of the 75 percent have three or more bedrooms;
or
(3) the proposed project is a multifamily project that
meets the following requirements:
(i) the proposed project is the rehabilitation of an
existing building which meets the requirements for minimum
rehabilitation expenditures in sections 42(e)(2) and 42(e)(3)(A)
of the Internal Revenue Code;
(ii) the proposed project involves participation by the
Minnesota housing finance agency or a local unit of government
in the financing of the acquisition or rehabilitation of the
project. For purposes of this subdivision, "participation"
means an activity other than the issuance of the bonds; and
(iii) the proposed project must be occupied by individuals
or families whose incomes at the time of their initial residency
in the project meet the requirements of section 42(g) of the
Internal Revenue Code.
(1) the proposed residential rental project meets the
requirements of section 142(d) of the Internal Revenue Code
regarding the incomes of the occupants of the housing; and
(2) the maximum rent for at least 20 percent of the units
in the proposed residential rental project do not exceed the
area fair market rent or exception fair market rents for
existing housing, if applicable, as established by the federal
Department of Housing and Urban Development.
(b) The maximum rent for a proposed single room occupancy
unit under paragraph (a), clause (1), is 30 percent of the
amount equal to 30 percent of the greater of the statewide or
county median income for a one-member household as determined by
the federal Department of Housing and Urban Development. The
maximum rent for at least 75 percent of the units of a
multifamily project under paragraph (a), clause (2), is 30
percent of the amount equal to 50 percent of the greater of the
statewide or county median income as determined by the federal
Department of Housing and Urban Development based on a household
size with 1.5 persons per bedroom.
(c) The proceeds from residential rental bonds may be used
for a project for which project-based federal rental assistance
payments are made only if:
(1) the owner of the project enters into a binding
agreement with the Minnesota housing finance agency under which
the owner is obligated to extend any existing low-income
affordability restrictions and any contract or agreement for
rental assistance payments for the maximum term permitted,
including any renewals thereof; and
(2) the Minnesota housing finance agency certifies that
project reserves will be maintained at closing of the bond issue
and budgeted in future years at the lesser of:
(i) the level described in Minnesota Rules, part 4900.0010,
subpart 7, item A, subitem (2), effective May 1, 1997; or
(ii) the level of project reserves available prior to the
bond issue, provided that additional money is available to
accomplish repairs and replacements needed at the time of bond
issue.
Sec. 25. Minnesota Statutes 2000, section 474A.047,
subdivision 2, is amended to read:
Subd. 2. [15-YEAR AGREEMENT.] Prior to the issuance of
residential rental bonds, the developer of the project for which
the bond proceeds will be used must enter into a 15-year
agreement with the issuer that specifies the maximum rental
rates of the rent-restricted units in the project and the income
levels of the residents of the project occupying
income-restricted units. The Such rental rates and income
levels must be within the limitations established under
subdivision 1. The developer must annually certify to the
issuer over the term of the agreement that the rental rates for
the rent-restricted units are within the limitations under
subdivision 1. The issuer may request individual certification
of the income of all residents of the project income-restricted
units. The commissioner may request from the issuer a copy of
the annual certification prepared by the developer. The
commissioner may require the issuer to request individual
certification of all residents of the project income-restricted
units.
Sec. 26. Minnesota Statutes 2000, section 474A.061,
subdivision 1, is amended to read:
Subdivision 1. [APPLICATION.] (a) An issuer may apply for
an allocation under this section by submitting to the department
an application on forms provided by the department, accompanied
by (1) a preliminary resolution, (2) a statement of bond counsel
that the proposed issue of obligations requires an allocation
under this chapter and the Internal Revenue Code, (3) the type
of qualified bonds to be issued, (4) an application deposit in
the amount of one percent of the requested allocation before the
last Monday in July, or in the amount of two percent of the
requested allocation on or after the last Monday in July, (5) a
public purpose scoring worksheet for manufacturing project and
enterprise zone facility project applications, and (6) for
residential rental projects, a statement from the applicant or
bond counsel as to whether the project preserves existing
federally subsidized housing for residential rental project
applications and whether the project is restricted to persons
who are 55 years of age or older. The issuer must pay the
application deposit by a check made payable to the department of
finance. The Minnesota housing finance agency, the Minnesota
rural finance authority, and the Minnesota higher education
services office may apply for and receive an allocation under
this section without submitting an application deposit.
(b) An entitlement issuer may not apply for an allocation
from the housing pool or from the public facilities pool unless
it has either permanently issued bonds equal to the amount of
its entitlement allocation for the current year plus any amount
of bonding authority carried forward from previous years or
returned for reallocation all of its unused entitlement
allocation. For purposes of this subdivision, its entitlement
allocation includes an amount obtained under section 474A.04,
subdivision 6. This paragraph does not apply to an application
from the Minnesota housing finance agency for an allocation
under subdivision 2a for cities who choose to have the agency
issue bonds on their behalf.
(c) If an application is rejected under this section, the
commissioner must notify the applicant and return the
application deposit to the applicant within 30 days unless the
applicant requests in writing that the application be
resubmitted. The granting of an allocation of bonding authority
under this section must be evidenced by a certificate of
allocation.
Sec. 27. Minnesota Statutes 2000, section 474A.061,
subdivision 2a, is amended to read:
Subd. 2a. [HOUSING POOL ALLOCATION.] (a) On the first
business day that falls on a Monday of the calendar year and the
first Monday in February Commencing on the second Tuesday in
January and continuing on each Monday through July 15, the
commissioner shall allocate available bonding authority in from
the housing pool to applications received by on or before the
Monday of the previous preceding week for residential rental
projects that are not restricted to persons who are 55 years of
age or older and that meet the eligibility criteria under
section 474A.047, except that allocations may be made to
projects that are restricted to persons who are 55 years of age
or older, if the project preserves existing federally subsidized
housing. Projects that preserve existing federally subsidized
housing shall be allocated available bonding authority in the
housing pool for residential rental projects prior to the
allocation of available bonding authority to other eligible
residential rental projects. Allocations of available bonding
authority from the housing pool for eligible residential rental
projects shall be awarded in the following order of priority:
(1) projects that preserve existing federally subsidized
housing; (2) projects that are not restricted to persons who are
55 years of age or older; and (3) other residential rental
projects. Prior to May 15, no allocation shall be made to a
project restricted to persons who are 55 years of age or older.
If an issuer that receives an allocation under this paragraph
does not issue obligations equal to all or a portion of the
allocation received within 120 days of the allocation or returns
the allocation to the commissioner, the amount of the allocation
is canceled and returned for reallocation through the housing
pool or to the unified pool after July 15.
(b) After February January 1, and through February January
15, the Minnesota housing finance agency may accept applications
from cities for single-family housing programs which meet
program requirements as follows:
(1) the housing program must meet a locally identified
housing need and be economically viable;
(2) the adjusted income of home buyers may not exceed 80
percent of the greater of statewide or area median income as
published by the Department of Housing and Urban Development,
adjusted for household size;
(3) house price limits may not exceed the federal price
limits established for mortgage revenue bond programs. Data on
the home purchase price amount, mortgage amount, income,
household size, and race of the households served in the
previous year's single-family housing program, if any, must be
included in each application; and
(4) for applicants who choose to have the agency issue
bonds on their behalf, an application fee pursuant to section
474A.03, subdivision 4, and an application deposit equal to one
percent of the requested allocation must be submitted to the
Minnesota housing finance agency before the agency forwards the
list specifying the amounts allocated to the commissioner under
paragraph (c) (d). The agency shall submit the city's
application fee and application deposit to the commissioner when
requesting an allocation from the housing pool.
Applications by a consortium shall include the name of each
member of the consortium and the amount of allocation requested
by each member.
The Minnesota housing finance agency may accept
applications from June 15 through June 30 from cities for
single-family housing programs which meet program requirements
specified under clauses (1) to (4) if bonding authority is
available in the housing pool. Applications will be accepted
from June 15 to June 30 only from cities that received an
allotment in the same calendar year and used at least 75 percent
of their allotment by June 1.
(c) Any amounts remaining in the housing pool after July 15
are available for single-family housing programs for cities that
applied in January and received an allocation under this section
in the same calendar year. For a city that chooses to issue
bonds on its own behalf or pursuant to a joint powers agreement,
the agency must allot available bonding authority based on the
formula in paragraphs (d) and (f). Allocations will be made
loan by loan, on a first come, first served basis
among applicant cities on whose behalf the Minnesota housing
finance agency issues bonds. The agency must allot available
bonding authority.
Any city that received an allocation pursuant to paragraph
(f) in the same calendar year that wishes to issue bonds on its
own behalf or pursuant to a joint powers agreement for an amount
becoming available for single-family housing programs after July
15 shall notify the Minnesota housing finance agency by July
15. The Minnesota housing finance agency shall notify each city
making a request of the amount of its allocation within three
business days after July 15. The city must comply with
paragraph (f).
For purposes of paragraphs (a) to (g) (h), "city" means a
county or a consortium of local government units that agree
through a joint powers agreement to apply together for
single-family housing programs, and has the meaning given it in
section 462C.02, subdivision 6. "Agency" means the Minnesota
housing finance agency.
(c) (d) The total amount of allocation for mortgage bonds
for one city is limited to the lesser of: (i) the amount
requested, or (ii) the product of the total amount available for
mortgage bonds from the housing pool, multiplied by the ratio of
each applicant's population as determined by the most recent
estimate of the city's population released by the state
demographer's office to the total of all the applicants'
population, except that each applicant shall be allocated a
minimum of $100,000 regardless of the amount requested or the
amount determined under the formula in clause (ii). If a city
applying for an allocation is located within a county that has
also applied for an allocation, the city's population will be
deducted from the county's population in calculating the amount
of allocations under this paragraph.
Upon determining the amount of each applicant's allocation,
the agency shall forward to the commissioner a list specifying
the amounts allotted to each application and application deposit
checks to the commissioner with all application fees and
deposits from applicants who choose to have the agency issue
bonds on their behalf.
Total allocations from the housing pool for single-family
housing programs may not exceed 31 percent of the adjusted
allocation to the housing pool until after July 15.
(d) (e) The agency may issue bonds on behalf of
participating cities. The agency shall request an allocation
from the commissioner for all applicants who choose to have the
agency issue bonds on their behalf and the commissioner shall
allocate the requested amount to the agency. The agency may
request an allocation at any time after the first Monday second
Tuesday in February January and through the last Monday in July,
but may request an allocation no later than the last Monday in
July. After awarding an allocation and receiving a notice of
issuance for the mortgage bonds issued on behalf of the
participating cities, the commissioner shall transfer the
application deposits to the Minnesota housing finance agency to
be returned to the participating cities. The commissioner
Minnesota housing finance agency shall return any application
deposit to a city that paid an application deposit under
paragraph (b), clause (4), but was not part of the list
forwarded to the commissioner under paragraph (c) (d).
(e) (f) A city may choose to issue bonds on its own behalf
or through a joint powers agreement or may use bonding authority
for mortgage credit certificates and may request an allocation
from the commissioner by forwarding an application with an
application fee pursuant to section 474A.03, subdivision 4, and
a one percent application deposit to the commissioner no later
than the Monday of the week preceding an allocation. If the
total amount requested by all applicants exceeds the amount
available in the pool, the city may not receive a greater
allocation than the amount it would have received under the list
forwarded by the Minnesota housing finance agency to the
commissioner. No city may request or receive an allocation from
the commissioner until the list under paragraph (c) (d) has been
forwarded to the commissioner. A city must request an
allocation from the commissioner no later than 14 days before
the unified pool is created pursuant to section 474A.091,
subdivision 1 the last Monday in July. On and after the first
Monday in February and through the last Monday in July, No city
may receive an allocation from the housing pool for mortgage
bonds which has not first applied to the Minnesota housing
finance agency. The commissioner shall allocate the requested
amount to the city or cities subject to the limitations under
this paragraph.
If a city issues mortgage bonds from an allocation received
under this paragraph, the issuer must provide for the recycling
of funds into new loans. If the issuer is not able to provide
for recycling, the issuer must notify the commissioner in
writing of the reason that recycling was not possible and the
reason the issuer elected not to have the Minnesota housing
finance agency issue the bonds. "Recycling" means the use of
money generated from the repayment and prepayment of loans for
further eligible loans or for the redemption of bonds and the
issuance of current refunding bonds.
(f) (g) No entitlement city or county or city in an
entitlement county may apply for or be allocated authority to
issue mortgage bonds or use mortgage credit certificates from
the housing pool. No city in an entitlement county may apply
for or be allocated authority to issue residential rental bonds
from the housing pool or the unified pool.
(g) (h) A city that does not use at least 50 percent of its
allotment by the date applications are due for the first
allocation that is made from the housing pool for single-family
housing programs in the immediately succeeding calendar year may
not apply to the housing pool for a single-family mortgage bond
or mortgage credit certificate program allocation that exceeds
the amount of its allotment for the preceding year that was used
by the city in the immediately preceding year or receive an
allotment from the housing pool in the succeeding calendar year
that exceeds the amount of its allotment for the preceding year
that was used in the preceding year. The minimum allotment is
$100,000 for an allocation made prior to July 15, regardless of
the amount used in the preceding calendar year, except that a
city whose allocation in the preceding year was the minimum
amount of $100,000 and who did not use at least 50 percent of
its allocation from the preceding year is ineligible for an
allocation in the immediate succeeding calendar year. Each
local government unit in a consortium must meet the requirements
of this paragraph.
Sec. 28. Minnesota Statutes 2000, section 474A.061,
subdivision 2b, is amended to read:
Subd. 2b. [SMALL ISSUE POOL ALLOCATION.] On the first
Monday in January that is a business day through the last Monday
in July Commencing on the second Tuesday in January and
continuing on each Monday through the last Monday in July, the
commissioner shall allocate available bonding authority from the
small issue pool on Monday of each week to applications received
on or before the Monday of the preceding week for manufacturing
projects and enterprise zone facility projects. From the first
Monday in January that is a business day second Tuesday in
January through the last Monday in July, the commissioner shall
reserve $5,000,000 of the available bonding authority from the
small issue pool for applications for agricultural development
bond loan projects of the Minnesota rural finance authority.
Beginning in calendar year 2002, on the second Tuesday in
January through the last Monday in July, the commissioner shall
reserve $10,000,000 of available bonding authority in the small
issue pool for applications for student loan bonds of or on
behalf of the Minnesota higher education services office. The
total amount of allocations for student loan bonds from the
small issue pool may not exceed $10,000,000 per year.
The commissioner shall reserve $10,000,000 until the day
after the last Monday in February, $10,000,000 until the day
after the last Monday in April, and $10,000,000 until the day
after the last Monday in June in the small issue pool
for enterprise zone facility projects and manufacturing
projects. The amount of allocation provided to an issuer for a
specific enterprise zone facility project or manufacturing
project will be based on the number of points received for the
proposed project under the scoring system under section
474A.045. Proposed projects that receive 50 points or more are
eligible for all of the proposed allocation. Proposed projects
that receive less than 50 points are eligible to receive a
proportionally reduced share of the proposed authority, based
upon the number of points received.
If there are two or more applications for manufacturing and
enterprise zone facility projects from the small issue pool and
there is insufficient bonding authority to provide allocations
for all projects in any one week, the available bonding
authority shall be awarded based on the number of points awarded
a project under section 474A.045, with those projects receiving
the greatest number of points receiving allocation first. If
two or more applications receive an equal number of points,
available bonding authority shall be awarded by lot unless
otherwise agreed to by the respective issuers.
Sec. 29. Minnesota Statutes 2000, section 474A.061,
subdivision 2c, is amended to read:
Subd. 2c. [PUBLIC FACILITIES POOL ALLOCATION.] From the
beginning of the calendar year and continuing for a period of
120 days, the commissioner shall reserve $5,000,000 $3,000,000
of the available bonding authority from the public facilities
pool for applications for public facilities projects to be
financed by the Western Lake Superior Sanitary District. On the
first Monday in January that is a business day through the last
Monday in July Commencing on the second Tuesday in January and
continuing on each Monday through the last Monday in July, the
commissioner shall allocate available bonding authority from the
public facilities pool on Monday of each week to applications
for eligible public facilities projects received on or before
the Monday of the preceding week. If there are two or more
applications for public facilities projects from the pool and
there is insufficient available bonding authority to provide
allocations for all projects in any one week, the available
bonding authority shall be awarded by lot unless otherwise
agreed to by the respective issuers.
Sec. 30. Minnesota Statutes 2000, section 474A.061,
subdivision 4, is amended to read:
Subd. 4. [RETURN OF ALLOCATION; DEPOSIT REFUND.] (a) If an
issuer that receives an allocation under this section determines
that it will not issue obligations equal to all or a portion of
the allocation received under this section within 120 days of
allocation or within the time period permitted by federal tax
law, whichever is less, the issuer must notify the department.
If the issuer notifies the department or the 120-day period
since allocation has expired prior to the last Monday in July,
the amount of allocation is canceled and returned for
reallocation through the pool from which it was originally
allocated. If the issuer notifies the department or the 120-day
period since allocation has expired on or after the last Monday
in July, the amount of allocation is canceled and returned for
reallocation through the unified pool. If the issuer notifies
the department after the last Monday in November, the amount of
allocation is canceled and returned for reallocation to the
Minnesota housing finance agency. To encourage a competitive
application process, the commissioner shall reserve, for new
applications, the amount of allocation that is canceled and
returned for reallocation under this section for a minimum of
seven calendar days.
(b) An issuer that returns for reallocation all or a
portion of an allocation received under this section within 120
days of allocation shall receive within 30 days a refund equal
to:
(1) one-half of the application deposit for the amount of
bonding authority returned within 30 days of receiving
allocation;
(2) one-fourth of the application deposit for the amount of
bonding authority returned between 31 and 60 days of receiving
allocation; and
(3) one-eighth of the application deposit for the amount of
bonding authority returned between 61 and 120 days of receiving
allocation.
(c) No refund shall be available for allocations returned
120 or more days after receiving the allocation or beyond the
last Monday in November. This subdivision does not apply to the
Minnesota housing finance agency or the Minnesota rural finance
authority.
Sec. 31. [474A.062] [HESO 120-DAY ISSUANCE EXEMPTION.]
The Minnesota higher education services office is exempt
from the 120-day issuance requirements in this chapter and may
carry forward allocations for student loan bonds into three
successive calendar years, subject to carryforward notice
requirements of section 474A.131, subdivision 2. The maximum
cumulative carryforward is limited to $25,000,000.
Sec. 32. Minnesota Statutes 2000, section 474A.091,
subdivision 2, is amended to read:
Subd. 2. [APPLICATION.] Issuers may apply for an
allocation under this section by submitting to the department an
application on forms provided by the department accompanied by
(1) a preliminary resolution, (2) a statement of bond counsel
that the proposed issue of obligations requires an allocation
under this chapter and the Internal Revenue Code, (3) the type
of qualified bonds to be issued, (4) an application deposit in
the amount of two percent of the requested allocation, and (5) a
public purpose scoring worksheet for manufacturing and
enterprise zone applications, and (6) for residential rental
projects, a statement from the applicant or bond counsel as to
whether the project preserves existing federally subsidized
housing and whether the project is restricted to persons who are
55 years of age or older. The issuer must pay the application
deposit by check. An entitlement issuer may not apply for an
allocation for public facility bonds, residential rental project
bonds, or mortgage bonds under this section unless it has either
permanently issued bonds equal to the amount of its entitlement
allocation for the current year plus any amount carried forward
from previous years or returned for reallocation all of its
unused entitlement allocation. For purposes of this
subdivision, its entitlement allocation includes an amount
obtained under section 474A.04, subdivision 6.
Notwithstanding the restrictions imposed on entitlement
issuers under this subdivision, the Minnesota housing finance
agency may not apply for receive an allocation for mortgage
bonds under this section until after prior to the last first
Monday in August. Notwithstanding the restrictions imposed on
unified pool allocations after September 1 under subdivision 3,
paragraph (c)(2), the Minnesota housing finance agency October,
but may be awarded allocations for mortgage bonds from the
unified pool on or after September 1 the first Monday in
October. The Minnesota housing finance agency, the Minnesota
higher education services office, and the Minnesota rural
finance authority may apply for and receive an allocation under
this section without submitting an application deposit.
Sec. 33. Minnesota Statutes 2000, section 474A.091,
subdivision 3, is amended to read:
Subd. 3. [ALLOCATION PROCEDURE.] (a) The commissioner
shall allocate available bonding authority under this section on
the Monday of every other week beginning with the first Monday
in August through and on the last Monday in November.
Applications for allocations must be received by the department
by 4:30 p.m. on the Monday preceding the Monday on which
allocations are to be made. If a Monday falls on a holiday, the
allocation will be made or the applications must be received by
the next business day after the holiday.
(b) On or before September 1, allocations shall be awarded
from the unified pool in the following order of priority:
(1) applications for enterprise zone facility bonds;
(2) applications for small issue bonds for manufacturing
projects;
(3) applications for small issue bonds for agricultural
development bond loan projects;
(4) applications for residential rental project bonds;
(5) applications for public facility projects funded by
public facility bonds;
(6) applications for redevelopment bonds;
(7) applications for mortgage bonds; and
(8) applications for governmental bonds.
Allocations for residential rental projects may only be
made during the first allocation in August. The amount of
allocation provided to an issuer for a specific manufacturing
project will be based on the number of points received for the
proposed project under the scoring system under section 474A.045.
Proposed manufacturing projects that receive 50 points or more
are eligible for all of the proposed allocation. Proposed
manufacturing projects that receive less than 50 points under
section 474A.045 are only eligible to receive a proportionally
reduced share of the proposed authority, based upon the number
of points received.
(b) Prior to October 1, only the following applications
shall be awarded allocations from the unified pool. Allocations
shall be awarded in the following order of priority:
(1) applications for residential rental project bonds;
(2) applications for small issue bonds for manufacturing
projects; and
(3) applications for small issue bonds for agricultural
development bond loan projects.
(c) On the first Monday in October through the last Monday
in November, allocations shall be awarded from the unified pool
in the following order of priority:
(1) applications for student loan bonds issued by or on
behalf of the Minnesota higher education services office;
(2) applications for mortgage bonds;
(3) applications for public facility projects funded by
public facility bonds;
(4) applications for small issue bonds for manufacturing
projects;
(5) applications for small issue bonds for agricultural
development bond loan projects;
(6) applications for residential rental project bonds;
(7) applications for enterprise zone facility bonds;
(8) applications for governmental bonds; and
(9) applications for redevelopment bonds.
(d) If there are two or more applications for manufacturing
projects from the unified pool and there is insufficient bonding
authority to provide allocations for all manufacturing projects
in any one allocation period, the available bonding authority
shall be awarded based on the number of points awarded a project
under section 474A.045 with those projects receiving the
greatest number of points receiving allocation first. If two or
more applications for manufacturing projects receive an equal
amount of points, available bonding authority shall be awarded
by lot unless otherwise agreed to by the respective issuers.
(e) If there are two or more applications for enterprise
zone facility projects from the unified pool and there is
insufficient bonding authority to provide allocations for all
enterprise zone facility projects in any one allocation period,
the available bonding authority shall be awarded based on the
number of points awarded a project under section 474A.045 with
those projects receiving the greatest number of points receiving
allocation first. If two or more applications for enterprise
zone facility projects receive an equal amount of points,
available bonding authority shall be awarded by lot unless
otherwise agreed to by the respective issuers.
(f) If there are two or more applications for residential
rental projects from the unified pool and there is insufficient
bonding authority to provide allocations for all residential
rental projects in any one allocation period, the available
bonding authority shall be awarded in the following order of
priority: (1) projects that preserve existing federally
subsidized housing; (2) projects that are not restricted to
persons who are 55 years of age or older; and (3) other
residential rental projects.
(c)(1) (g) From the first Monday in August through the last
Monday in November, $20,000,000 of bonding authority or an
amount equal to the total annual amount of bonding authority
allocated to the small issue pool under section 474A.03,
subdivision 1, less the amount allocated to issuers from the
small issue pool for that year, whichever is less, is reserved
within the unified pool for small issue bonds to the extent such
amounts are available within the unified pool. On the first
Monday in September through the last Monday in November,
$2,500,000 of bonding authority or an amount equal to the total
annual amount of bonding authority allocated to the public
facilities pool under section 474A.03, subdivision 1, less the
amount allocated to issuers from the public facilities pool for
that year, whichever is less, is reserved within the unified
pool for public facility bonds to the extent such amounts are
available within the unified pool.
(2) (h) The total amount of allocations for mortgage bonds
from the housing pool and the unified pool may not exceed:
(i) (1) $10,000,000 for any one city; or
(ii) (2) $20,000,000 for any number of cities in any one
county.
An allocation for mortgage bonds may be used for mortgage
credit certificates.
(d) After September 1, allocations shall be awarded from
the unified pool only for the following types of qualified bonds:
small issue bonds, public facility bonds to finance publicly
owned facility projects, residential rental project bonds, and
enterprise zone facility bonds.
(i) The total amount of allocations for student loan bonds
from the unified pool may not exceed $10,000,000 per year.
(j) If there is insufficient bonding authority to fund all
projects within any qualified bond category other than
enterprise zone facility projects, manufacturing projects, and
residential rental projects, allocations shall be awarded by lot
unless otherwise agreed to by the respective issuers.
(k) If an application is rejected, the commissioner must
notify the applicant and return the application deposit to the
applicant within 30 days unless the applicant requests in
writing that the application be resubmitted.
(l) The granting of an allocation of bonding authority
under this section must be evidenced by issuance of a
certificate of allocation.
Sec. 34. Minnesota Statutes 2000, section 474A.091, is
amended by adding a subdivision to read:
Subd. 3a. [MORTGAGE BONDS.] (a) Bonding authority
remaining in the unified pool on October 1 is available for
single-family housing programs for cities that applied in
January and received an allocation under section 474A.061,
subdivision 2a, in the same calendar year. The Minnesota
housing finance agency shall receive an allocation for mortgage
bonds pursuant to this section, minus any amounts for a city or
consortium that intends to issue bonds on its own behalf under
paragraph (c).
(b) The agency may issue bonds on behalf of participating
cities. The agency shall request an allocation from the
commissioner for all applicants who choose to have the agency
issue bonds on their behalf and the commissioner shall allocate
the requested amount to the agency. Allocations shall be
awarded by the commissioner each Monday commencing on the first
Monday in October through the last Monday in November for
applications received by 4:30 p.m. on the Monday of the week
preceding an allocation.
For cities who choose to have the agency issue bonds on
their behalf, allocations will be made loan by loan, on a first
come, first served basis among the cities. The agency shall
submit an application fee pursuant to section 474A.03,
subdivision 4, and an application deposit equal to two percent
of the requested allocation to the commissioner when requesting
an allocation from the unified pool. After awarding an
allocation and receiving a notice of issuance for mortgage bonds
issued on behalf of the participating cities, the commissioner
shall transfer the application deposit to the Minnesota housing
finance agency.
For purposes of paragraphs (a) to (d), "city" means a
county or a consortium of local government units that agree
through a joint powers agreement to apply together for
single-family housing programs, and has the meaning given it in
section 462C.02, subdivision 6. "Agency" means the Minnesota
housing finance agency.
(c) Any city that received an allocation pursuant to
section 474A.061, subdivision 2a, paragraph (f), in the current
year that wishes to receive an additional allocation from the
unified pool and issue bonds on its own behalf or pursuant to a
joint powers agreement shall notify the Minnesota housing
finance agency by the third Monday in September. The total
amount of allocation for mortgage bonds for a city choosing to
issue bonds on its own behalf or through a joint powers
agreement is limited to the lesser of: (i) the amount
requested, or (ii) the product of the total amount available for
mortgage bonds from the unified pool, multiplied by the ratio of
the population of each city that applied in January and received
an allocation under section 474A.061, subdivision 2a, in the
same calendar year, as determined by the most recent estimate of
the city's population released by the state demographer's office
to the total of the population of all the cities that applied in
January and received an allocation under section 474A.061,
subdivision 2a, in the same calendar year. If a city choosing
to issue bonds on its own behalf or through a joint powers
agreement is located within a county that has also chosen to
issue bonds on its own behalf or through a joint powers
agreement, the city's population will be deducted from the
county's population in calculating the amount of allocations
under this paragraph.
The Minnesota housing finance agency shall notify each city
choosing to issue bonds on its own behalf or pursuant to a joint
powers agreement of the amount of its allocation by October 15.
Upon determining the amount of the allocation of each choosing
to issue bonds on its own behalf or through a joint powers
agreement, the agency shall forward a list specifying the
amounts allotted to each city.
A city that chooses to issue bonds on its own behalf or
through a joint powers agreement may request an allocation from
the commissioner by forwarding an application with an
application fee pursuant to section 474A.03, subdivision 4, and
an application deposit equal to two percent of the requested
amount to the commissioner no later than 4:30 p.m. on the Monday
of the week preceding an allocation. Allocations to cities that
choose to issue bonds on their own behalf shall be awarded by
the commissioner on the first Monday after October 15 through
the last Monday in November. No city may receive an allocation
from the commissioner after the last Monday in November. The
commissioner shall allocate the requested amount to the city or
cities subject to the limitations under this subdivision.
If a city issues mortgage bonds from an allocation received
under this paragraph, the issuer must provide for the recycling
of funds into new loans. If the issuer is not able to provide
for recycling, the issuer must notify the commissioner in
writing of the reason that recycling was not possible and the
reason the issuer elected not to have the Minnesota housing
finance agency issue the bonds. "Recycling" means the use of
money generated from the repayment and prepayment of loans for
further eligible loans or for the redemption of bonds and the
issuance of current refunding bonds.
(d) No entitlement city or county or city in an entitlement
county may apply for or be allocated authority to issue mortgage
bonds or use mortgage credit certificates from the unified pool.
(e) An allocation awarded to the agency for mortgage bonds
under this section may be carried forward by the agency into the
next succeeding calendar year subject to notice requirements
under section 474A.131 and is available until the last business
day in December of that succeeding calendar year.
Sec. 35. Minnesota Statutes 2000, section 474A.091,
subdivision 4, is amended to read:
Subd. 4. [MORTGAGE BONDS REMAINING BONDING AUTHORITY.] All
remaining bonding authority available for allocation under this
section on December 1, is allocated to the Minnesota housing
finance agency.
Sec. 36. Minnesota Statutes 2000, section 474A.091,
subdivision 5, is amended to read:
Subd. 5. [RETURN OF ALLOCATION; DEPOSIT REFUND.] (a) If an
issuer that receives an allocation under this section determines
that it will not issue obligations equal to all or a portion of
the allocation received under this section within 120 days of
the allocation or within the time period permitted by federal
tax law, whichever is less, the issuer must notify the
department. If the issuer notifies the department or the
120-day period since allocation has expired prior to the last
Monday in November, the amount of allocation is canceled and
returned for reallocation through the unified pool. If the
issuer notifies the department on or after the last Monday in
November, the amount of allocation is canceled and returned for
reallocation to the Minnesota housing finance agency. To
encourage a competitive application process, the commissioner
shall reserve, for new applications, the amount of allocation
that is canceled and returned for reallocation under this
section for a minimum of seven calendar days.
(b) An issuer that returns for reallocation all or a
portion of an allocation received under this section within 120
days of the allocation shall receive within 30 days a refund
equal to:
(1) one-half of the application deposit for the amount of
bonding authority returned within 30 days of receiving the
allocation;
(2) one-fourth of the application deposit for the amount of
bonding authority returned between 31 and 60 days of receiving
the allocation; and
(3) one-eighth of the application deposit for the amount of
bonding authority returned between 61 and 120 days of receiving
the allocation.
(c) No refund of the application deposit shall be available
for allocations returned on or after the last Monday in November.
This subdivision does not apply to the Minnesota housing finance
agency, or the Minnesota rural finance authority.
Sec. 37. Minnesota Statutes 2000, section 474A.091,
subdivision 6, is amended to read:
Subd. 6. [FINAL ALLOCATION; CARRYFORWARD.] Notwithstanding
the notice requirements of section 474A.131, subdivision 2, any
bonding authority remaining unissued by the Minnesota housing
finance agency on the last business day in December shall be
carried forward into the next calendar year by the commissioner
for the Minnesota housing finance agency in accordance with
section 474A.131, subdivision 2.
Sec. 38. Minnesota Statutes 2000, section 474A.131,
subdivision 1, is amended to read:
Subdivision 1. [NOTICE OF ISSUE.] Each issuer that issues
bonds with an allocation received under this chapter shall
provide a notice of issue to the department on forms provided by
the department stating:
(1) the date of issuance of the bonds;
(2) the title of the issue;
(3) the principal amount of the bonds;
(4) the type of qualified bonds under federal tax law; and
(5) the dollar amount of the bonds issued that were subject
to the annual volume cap; and
(6) for entitlement issuers, whether the allocation is from
current year entitlement authority or is from carry forward
authority.
For obligations that are issued as a part of a series of
obligations, a notice must be provided for each series. A
penalty of one-half of the amount of the application deposit not
to exceed $5,000 shall apply to any issue of obligations for
which a notice of issue is not provided to the department within
five business days after issuance or before the last Monday in
December, whichever occurs first. Within 30 days after receipt
of a notice of issue the department shall refund a portion of
the application deposit equal to one percent of the amount of
the bonding authority actually issued if a one percent
application deposit was made, or equal to two percent of the
amount of the bonding authority actually issued if a two percent
application deposit was made, less any penalty amount.
Sec. 39. Minnesota Statutes 2000, section 474A.131, is
amended by adding a subdivision to read:
Subd. 1b. [DEADLINE FOR ISSUANCE OF QUALIFIED BONDS.] If
an issuer fails to notify the department before 4:30 p.m. on the
last business day in December of issuance of obligations
pursuant to an allocation received for any qualified bond
project or issuance of an entitlement allocation, the allocation
is canceled and the bonding authority is allocated to the
Minnesota housing finance agency for carryforward by the
commissioner under section 474A.091, subdivision 6.
Sec. 40. Minnesota Statutes 2000, section 474A.131,
subdivision 2, is amended to read:
Subd. 2. [CARRYFORWARD NOTICE.] If an issuer intends to
carry forward an allocation received under this chapter, it must
notify the department in writing before 4:30 p.m. on the last
Monday of business day in December. This notice requirement
does not apply to the Minnesota housing finance agency for the
carryforward of unallocated unified pool balances.
Sec. 41. Minnesota Statutes 2000, section 474A.14, is
amended to read:
474A.14 [NOTICE OF AVAILABLE AUTHORITY.]
The department shall publish in the State Register a
provide at its official Web site a written notice of the amount
of bonding authority in the housing, small issue, and public
facilities pools as soon after January 1 as possible. The
department shall publish in the State Register a provide at its
official Web site a written notice of the amount of bonding
authority available for allocation in the unified pool as soon
after August 1 as possible.
Sec. 42. Minnesota Statutes 2000, section 475.54,
subdivision 1, is amended to read:
Subdivision 1. [IN INSTALLMENTS; EXCEPTION; ANNUAL LIMIT.]
Except as provided in subdivision 3, 5a, 15, or 17, or as
expressly authorized in another law, all obligations of each
issue shall mature or be subject to mandatory sinking fund
redemption in installments, the first not later than three years
and the last not later than 30 years from the date of the issue;
or 40 years or the useful life of the asset, whichever is less,
for municipal water and wastewater treatment systems and
essential community facilities financed or guaranteed by the
United States Department of Agriculture. No amount of principal
of the issue payable in any calendar year shall exceed five
times the an amount of equal to the smallest amount payable in
any preceding calendar year ending three years or more after the
issue date multiplied:
(1) by five, in the case of obligations maturing not later
than 25 years from the date of issue; and
(2) by six, in the case of obligations maturing 25 years or
later from the date of issue.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 43. Minnesota Statutes 2000, section 475.58,
subdivision 1, is amended to read:
Subdivision 1. [APPROVAL BY ELECTORS; EXCEPTIONS.]
Obligations authorized by law or charter may be issued by any
municipality upon obtaining the approval of a majority of the
electors voting on the question of issuing the obligations, but
an election shall not be required to authorize obligations
issued:
(1) to pay any unpaid judgment against the municipality;
(2) for refunding obligations;
(3) for an improvement or improvement program, which
obligation is payable wholly or partly from the proceeds of
special assessments levied upon property specially benefited by
the improvement or by an improvement within the improvement
program, or of taxes levied upon the increased value of property
within a district for the development of which the improvement
is undertaken, including obligations which are the general
obligations of the municipality, if the municipality is entitled
to reimbursement in whole or in part from the proceeds of such
special assessments or taxes and not less than 20 percent of the
cost of the improvement or the improvement program is to be
assessed against benefited property or is to be paid from the
proceeds of federal grant funds or a combination thereof, or is
estimated to be received from such taxes within the district;
(4) payable wholly from the income of revenue producing
conveniences;
(5) under the provisions of a home rule charter which
permits the issuance of obligations of the municipality without
election;
(6) under the provisions of a law which permits the
issuance of obligations of a municipality without an election;
(7) to fund pension or retirement fund liabilities pursuant
to section 475.52, subdivision 6;
(8) under a capital improvement plan under section
373.40; and
(9) to fund facilities as provided in subdivision 3; and
(10) under sections 469.1813 to 469.1815 (property tax
abatement authority bonds).
Sec. 44. Minnesota Statutes 2000, section 475.59, is
amended to read:
475.59 [MANNER OF SUBMISSION; NOTICE.]
When the governing body of a municipality resolves to issue
bonds for any purpose requiring the approval of the electors, it
shall provide for submission of the proposition of their
issuance at a general or special election or town or school
district meeting. Notice of such election or meeting shall be
given in the manner required by law and shall state the maximum
amount and the purpose of the proposed issue. In any school
district, the school board or board of education may, according
to its judgment and discretion, submit as a single ballot
question or as two or more separate questions in the notice of
election and ballots the proposition of their issuance for any
one or more of the following, stated conjunctively or in the
alternative: acquisition or enlargement of sites, acquisition,
betterment, erection, furnishing, equipping of one or more new
schoolhouses, remodeling, repairing, improving, adding to,
betterment, furnishing, equipping of one or more existing
schoolhouses. In any city, town, or county, the governing body
may, according to its judgment and discretion, submit as a
single ballot question or as two or more separate questions in
the notice of election and ballots the proposition of their
issuance, stated conjunctively or in the alternative, for the
acquisition, construction, or improvement of any facilities at
one or more locations.
Sec. 45. Laws 1974, chapter 473, is amended to read:
Section 1. [SCOTT COUNTY; HOUSING AND REDEVELOPMENT
AUTHORITY.] There is hereby created in Scott county a public
body corporate and politic, to be known as the Scott county
housing and redevelopment authority, having all of the powers
and duties of a housing and redevelopment authority under the
provisions of the municipal housing and redevelopment act,
Minnesota Statutes, Sections 462.411 to 462.711, and acts
amendatory thereof; which act applies to the county of
Scott 469.001 to 469.047, and having those powers of an economic
development authority under the provisions of Minnesota
Statutes, sections 469.090 to 469.180 as are granted to it by
Scott county as provided below. For the purposes of applying
the provisions of the municipal housing and redevelopment
act Minnesota Statutes, sections 469.001 to 469.047 and 469.090
to 469.180, to Scott county, the county has all the powers and
duties of a municipality, the county board has all of the powers
and duties of a governing body, the chairman of the county board
has all of the powers and duties of a mayor, and the area of
operation includes the area within the territorial boundaries of
the county.
Sec. 2. [APPLICATION.] Subdivision 1. This act shall not
limit or restrict any existing housing and redevelopment
authority or prevent a municipality from creating an authority.
The county shall not exercise jurisdiction in any municipality
where a municipal housing and redevelopment authority is
established.
Subd. 2. A municipal housing and redevelopment authority
may request the Scott county housing and redevelopment authority
to handle the housing duties of the authority and, in such an
event, the Scott county housing and redevelopment authority
shall act and have exclusive jurisdiction for housing in the
municipality pursuant to the provisions of the municipal housing
and redevelopment act, Minnesota Statutes, Sections 462.411 to
462.711, and acts amendatory thereof 469.001 to 469.047. A
transfer of duties relating to housing shall not transfer any
duties relating to redevelopment.
Sec. 3. [MUNICIPAL APPROVAL.] If any housing or
redevelopment project is undertaken in Scott county pursuant to
this authorization, and such project is within the boundaries of
any incorporated village, city or township, the location of such
project shall be approved by the governing body of such village,
city or township.
Sec. 4. [ECONOMIC DEVELOPMENT AUTHORITY POWERS.] The Scott
county housing and redevelopment authority may exercise any of
the powers of an economic development authority (EDA) granted to
it by resolution by the Scott county board of commissioners,
except for the authority to levy the tax described in Minnesota
Statutes, section 469.107. With the prior approval of the Scott
county board the authority may increase its levy of the special
tax described in Minnesota Statutes, section 469.033,
subdivision 6, to an amount not exceeding 0.01813 percent of
taxable market value, or any higher limit from time to time
authorized under Minnesota Statutes, section 469.107 or 469.033,
subdivision 6.
Sec. 5. [OFFERS OF TAX-FORFEITED LANDS.] Scott county may
offer to the Scott county housing and redevelopment authority,
under the conditions and policies established by the county, and
subject to the approval of the city in which the property is
located, nonconservation tax-forfeited land prior to making the
properties available to cities in Scott county.
Sec. 4. Sec. 6. [EFFECTIVE DATE; LOCAL APPROVAL.] This act
takes effect when approved by a majority of the board of county
commissioners of Scott county and upon compliance with Minnesota
Statutes, Section 645.021 This act is effective the day after
the governing body of Scott county and its chief clerical
officer timely complete their compliance with Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
Sec. 46. Laws 1980, chapter 482, is amended to read:
Section 1. [CARVER COUNTY; HOUSING AND REDEVELOPMENT.]
Subdivision 1. There is created in the county of Carver a
public body corporate and politic, to be known as the Carver
county housing and redevelopment authority, having all of the
powers and duties of a housing and redevelopment authority under
the provisions of the municipal housing and redevelopment act,
Minnesota Statutes, Section 462.411 to 462.711 sections 469.001
to 469.047, and having those powers of an economic development
authority under the provisions of Minnesota Statutes, sections
469.090 to 469.1082, as are granted to it by Carver county as
provided in sections 2 to 4. For the purposes of applying the
provisions of the municipal housing and redevelopment
act Minnesota Statutes, sections 469.001 to 469.047 and 469.090
to 469.1082, to Carver county, the county has all of the powers
and duties of a municipality, the county board has all of the
powers and duties of a governing body, the chairman of the
county board has all of the powers and duties of a mayor, and
the area of operation includes the area within the territorial
boundaries of the county.
Subd. 2. This section shall not limit or restrict any
existing housing and redevelopment authority or prevent a
municipality from creating an authority. The county shall not
exercise jurisdiction in any municipality where a municipal
housing and redevelopment authority is established. If a
municipal housing and redevelopment authority requests the
Carver county housing and redevelopment authority to handle the
housing duties of the municipal authority, the Carver county
housing and redevelopment authority shall act and have exclusive
jurisdiction for housing in the municipality. A transfer of
duties relating to housing shall not transfer any duties
relating to redevelopment.
Sec. 2. [ECONOMIC DEVELOPMENT AUTHORITY POWERS.] The
Carver county housing and redevelopment authority may exercise
any of the powers of an economic development authority granted
to it by resolution by the Carver county board of commissioners,
except for the authority to levy the tax described in Minnesota
Statutes, section 469.107. With the prior approval of the
Carver county board, the authority may increase its levy of the
special tax described in Minnesota Statutes, section 469.033,
subdivision 6, to an amount not exceeding 0.01813 percent of
taxable market value, or any higher limit from time to time,
authorized under Minnesota Statutes, section 469.107 or 469.033,
subdivision 6.
Sec. 3. [OFFERS OF TAX-FORFEITED LANDS.] Carver county may
offer to the Carver county housing and redevelopment authority,
under the conditions and policies established by the county, and
subject to the approval of the city in which the property is
located, nonconservation tax-forfeited land prior to making the
properties available to cities in Carver county.
Sec. 2. Sec. 4. [LOCAL APPROVAL.] Before a housing or
redevelopment project of the Carver county housing and
redevelopment authority is undertaken, the project shall be
approved by the local governing body with jurisdiction over all
or any part of the area in which the proposed project is located.
Sec. 3. Sec. 5. [EFFECTIVE DATE; LOCAL APPROVAL.] This
act is effective upon takes effect the day of compliance after
the governing body of Carver county complies with Minnesota
Statutes, Section 645.021, Subdivision 3 subdivisions 2 and 3.
Sec. 47. [CHISAGO LAKES JOINT SEWAGE TREATMENT COMMISSION
BONDING AUTHORITY.]
Subdivision 1. [AUTHORITY.] Notwithstanding Minnesota
Statutes, section 471.59, subdivision 11, the Chisago lakes
joint sewage treatment commission, a joint powers board
established by the county of Chisago, and the cities of
Lindstrom, Chisago City, and Center City, to own and operate
wastewater treatment facilities for the member local
governments, may issue and sell general obligation bonds
pursuant to Minnesota Statutes, sections 115.46 and 444.075, and
chapter 475, to acquire land for, construct, expand, furnish,
equip, and modify its wastewater treatment facilities, and
pledge the full faith and credit and taxing power of the
governmental units that are members of the joint powers board.
Bonds issued under this section are not subject to Minnesota
Statutes, section 475.58. The joint powers board is a
municipality within the meaning of Minnesota Statutes, chapter
475. Each government unit that is a member of the joint powers
board must adopt a resolution authorizing the joint powers board
to issue and sell the bonds.
Subd. 2. [EFFECTIVE DATE; NO LOCAL APPROVAL.] This section
is effective the day following final enactment and does not
require local approval, as provided in Minnesota Statutes,
section 645.023, subdivision 1, paragraph (a).
Sec. 48. [HASSAN TOWNSHIP; ECONOMIC DEVELOPMENT AUTHORITY;
ESTABLISHMENT AND POWERS.]
Subdivision 1. [FINDINGS.] The legislature finds that it
is appropriate to give Hassan township the powers of an economic
development authority because the town is located in an
increasingly urbanized area and is the only remaining town in
Hennepin county.
Subd. 2. [ESTABLISHMENT.] The board of township
supervisors of Hassan township may establish an economic
development authority in the manner provided in Minnesota
Statutes, sections 469.090 to 469.1081, and may impose limits on
the authority enumerated in Minnesota Statutes, section
469.092. The economic development authority has all of the
powers and duties granted to or imposed upon economic
development authorities under Minnesota Statutes, sections
469.090 to 469.1081. The township economic development
authority may create and define the boundaries of economic
development districts at any place or places within the
township, provided that a project as recommended by the township
authority that is to be located within the corporate limits of a
city may not be commenced without the approval of the governing
body of the city. Minnesota Statutes, section 469.174,
subdivision 10, and the contiguity requirement specified under
Minnesota Statutes, section 469.101, subdivision 1, do not apply
to limit the areas that may be designated as township economic
development districts.
Subd. 3. [POWERS.] If an economic development authority is
established as provided in subdivision 1, the township may
exercise all of the powers relating to an economic development
authority granted to a city under Minnesota Statutes, sections
469.090 to 469.1081, or other law, including the power to levy a
tax to support the activities of the authority.
Subd. 4. [LOCAL APPROVAL.] This section is effective the
day after the town board of supervisors of Hassan township and
its chief clerical officer timely complete their compliance with
Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 49. [REPEALER.]
(a) Minnesota Statutes 2000, sections 373.40, subdivision
7; and 474A.061, subdivision 6, are repealed.
(b) Minnesota Statutes 2000, section 376.03, is repealed.
Sec. 50. [EFFECTIVE DATE.]
Sections 13 to 42 are effective the day after final
enactment except that section 19, paragraph (c), is effective to
require submissions by December 31, 2002, and annually
thereafter.
Presented to the governor May 25, 2001
Signed by the governor May 29, 2001, 11:30 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes