1.1                          A bill for an act 
  1.2             relating to counties; authorizing county economic 
  1.3             development authorities; proposing coding for new law 
  1.4             in Minnesota Statutes, chapter 469. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [469.1082] [COUNTY ECONOMIC DEVELOPMENT 
  1.7   AUTHORITIES.] 
  1.8      Subdivision 1.  [PRELIMINARY COUNTY FINDINGS AND 
  1.9   DECLARATION.] There is created in each county in this state, 
  1.10  excluding those counties in which a county economic development 
  1.11  authority has been created by special act, an economic 
  1.12  development authority of that county, hereinafter referred to as 
  1.13  "county authority."  No county authority shall transact any 
  1.14  business or exercise any powers until authority to function in 
  1.15  the county is granted by the county governing body by adopting 
  1.16  an enabling resolution.  The governing body shall consider the 
  1.17  need for a county authority to function on the governing body's 
  1.18  own motion asserting that there is need for a county authority 
  1.19  to function in the county and requesting that the governing body 
  1.20  so declare.  The governing body shall adopt a resolution 
  1.21  declaring that there is need for a county authority to function 
  1.22  in the county if it makes the findings required in section 
  1.23  469.093, subdivision 1. 
  1.24     Subd. 2.  [FINDINGS.] The governing body shall make that 
  1.25  declaration if it finds: 
  2.1      (1) that substandard, slum, deteriorated, unused, or 
  2.2   inappropriately used areas exist in the political subdivisions 
  2.3   which cannot be developed without government assistance; and 
  2.4      (2) that a county authority would be an effective, 
  2.5   efficient, or economical administrative unit of the political 
  2.6   subdivision to carry out the purposes of sections 469.090 to 
  2.7   469.109 in the political subdivision. 
  2.8      Subd. 3.  [SUFFICIENCY AND CONCLUSIVENESS OF 
  2.9   RESOLUTION.] When the resolution becomes finally effective, it 
  2.10  shall be deemed sufficient and conclusive for all purposes if it 
  2.11  declares there is need for a county authority and finds in 
  2.12  substantially the terms provided in subdivision 2 that the 
  2.13  conditions described in it exist. 
  2.14     Subd. 4.  [FUNCTION OF AUTHORITY.] A county economic 
  2.15  development authority shall serve, program, develop, and manage 
  2.16  all economic development programs and redevelopment programs 
  2.17  related to the purposes outlined in sections 469.090 to 469.109 
  2.18  under its jurisdiction. 
  2.19     Sec. 2.  [469.1083] [AREA OF OPERATION.] 
  2.20     Subdivision 1.  [COUNTY AUTHORITY.] The area of operation 
  2.21  of a county authority shall include all of the county for which 
  2.22  it is created and all of the political subdivisions for which 
  2.23  the county authority is created, provided that a county 
  2.24  authority may not undertake any project within the boundaries of 
  2.25  any city which has not empowered the county authority to 
  2.26  function in the city as provided in sections 469.090 to 469.109 
  2.27  unless a resolution has been adopted by the governing body of 
  2.28  the city, and by any authority which has been established in the 
  2.29  city, declaring that there is a need for the county authority to 
  2.30  exercise its powers in the city. 
  2.31     Subd. 2.  [PUBLIC HEARING; NOTICE; PUBLICATION; 
  2.32  RESOLUTION.] The governing body of a political subdivision shall 
  2.33  not adopt any resolution authorized by this section and section 
  2.34  469.1082 unless a public hearing has been held.  The clerk of 
  2.35  the political subdivision shall give notice of the time, place, 
  2.36  and purpose of the public hearing not less than ten days nor 
  3.1   more than 30 days prior to the day the hearing is to be held, in 
  3.2   a manner appropriate to inform the public.  On the date fixed 
  3.3   for the public hearing, an opportunity to be heard shall be 
  3.4   granted to all residents of the political subdivision and to all 
  3.5   other interested persons. 
  3.6      Subd. 3.  [CONTINUATION OF ACTIVE CITY ECONOMIC DEVELOPMENT 
  3.7   AUTHORITIES.] Where a county authority has been established, 
  3.8   active city economic development authorities will continue to 
  3.9   function and operate under the provisions of sections 469.090 to 
  3.10  469.109.  An "active city authority" means an authority that has 
  3.11  been legally formulated and has an active program.  Additional 
  3.12  city economic development authorities may be created within the 
  3.13  area of operation of the county authority without the explicit 
  3.14  concurrence of the county economic development authority. 
  3.15     Subd. 4.  [CONTINUATION OF ACTIVE COUNTY AND MULTICOUNTY 
  3.16  HOUSING AND REDEVELOPMENT AUTHORITIES.] Active county and 
  3.17  multicounty housing and redevelopment authorities established on 
  3.18  or before June 30, 1999, shall continue to function and operate 
  3.19  under the provisions of sections 469.001 to 469.047.  An "active 
  3.20  county or multicounty housing and redevelopment authority" means 
  3.21  an authority that has been legally formulated and has an active 
  3.22  single-family and multifamily new housing development program.  
  3.23     Where a county has established an active county or 
  3.24  multicounty housing and redevelopment authority, the county 
  3.25  authority shall not undertake any project within the boundaries 
  3.26  of the county as provided in section 469.002, subdivisions 13 
  3.27  and 15, unless a resolution has been adopted by the county or 
  3.28  multicounty housing and redevelopment authority declaring that 
  3.29  there is a need for the county authority to exercise its powers 
  3.30  in the county or by a resolution adopted by the county governing 
  3.31  body declaring that there is a need to transfer authority, 
  3.32  powers, projects, programs, and money to the county authority as 
  3.33  outlined in section 469.1086. 
  3.34     Sec. 3.  [469.1084] [APPOINTMENT, QUALIFICATIONS, AND 
  3.35  TENURE OF COUNTY COMMISSIONERS.] 
  3.36     When the governing body of a county adopts an enabling 
  4.1   resolution under section 469.091, the governing body shall 
  4.2   appoint seven persons, two of whom must be members of the 
  4.3   governing body as commissioners of the county authority.  The 
  4.4   membership of the commission shall reflect an areawide 
  4.5   distribution on a representative basis and shall be appointed by 
  4.6   the county commission chair, with the approval of the county 
  4.7   commissioners.  The commissioners who are first appointed shall 
  4.8   be designated to serve for terms of one, two, three, four, and 
  4.9   five years respectively, with two serving six-year terms, from 
  4.10  the date of their appointment.  Thereafter commissioners shall 
  4.11  be appointed for a term of office of six years, except that all 
  4.12  vacancies shall be filled for the unexpired term.  Persons may 
  4.13  be appointed as commissioners if they reside within the 
  4.14  boundaries of the county, and are otherwise eligible under 
  4.15  sections 469.094 to 469.109. 
  4.16     Sec. 4.  [469.1085] [POWERS OF COUNTY AUTHORITIES.] 
  4.17     A county authority and its commissioners shall, within the 
  4.18  area of operation of the authority, have the same functions, 
  4.19  rights, powers, privileges, immunities, and limitations granted 
  4.20  to city economic development authorities under sections 469.090 
  4.21  to 469.109 or other law, including the power to levy a tax as a 
  4.22  special taxing jurisdiction upon approval of the county 
  4.23  commissioners.  The provisions of law applicable to economic 
  4.24  development authorities for cities and their commissioners shall 
  4.25  be applicable to county authorities and their commissioners, 
  4.26  except as clearly indicated otherwise. 
  4.27     Sec. 5.  [469.1086] [TRANSFER OF AUTHORITY.] 
  4.28     Subdivision 1.  [ECONOMIC DEVELOPMENT, HOUSING, AND 
  4.29  REDEVELOPMENT POWERS.] The county may, by ordinance, divide the 
  4.30  economic development, housing, and redevelopment powers granted 
  4.31  under sections 469.001 to 469.047 and 469.090 to 469.109 between 
  4.32  the economic development authority and any other authority or 
  4.33  commission established under statute or county charter for 
  4.34  economic development, housing, or redevelopment as provided in 
  4.35  subdivision 2.  The county may, by ordinance, confer all of the 
  4.36  powers of an economic development authority on an active county 
  5.1   or multicounty housing and redevelopment authority.  This 
  5.2   authority shall serve as the county authority. 
  5.3      Subd. 2.  [PROJECT CONTROL; AUTHORITY; OPERATION.] The 
  5.4   county may, by resolution, transfer the control, authority, and 
  5.5   operation of any project as defined in section 169.174, 
  5.6   subdivision 8, or any other program or project authorized in 
  5.7   sections 469.001 to 469.047 or 469.124 to 469.134 located within 
  5.8   the county from the governmental agency or subdivision that 
  5.9   established the project to the county authority.  The county 
  5.10  commissioners may also require acceptance of control, authority, 
  5.11  and operation of the project by the economic development 
  5.12  authority.  The county authority may exercise all of the powers 
  5.13  that the governmental unit establishing the project could 
  5.14  exercise with respect to the project.  
  5.15     When a project or program is transferred to the county 
  5.16  authority, the authority shall covenant and pledge to perform 
  5.17  the terms, conditions, and covenants of the bond indenture or 
  5.18  other agreements executed for the security of any bonds issued 
  5.19  by the governmental subdivision that initiated the project or 
  5.20  program.  The county authority may exercise all of the powers 
  5.21  necessary to perform the terms, conditions, and covenants of any 
  5.22  indenture or other agreements executed for the security of the 
  5.23  bonds and shall become obligated on the bonds when the project 
  5.24  or program is transferred as provided in this subdivision. 
  5.25     If the county transfers a housing project or a housing 
  5.26  development project to the county authority, the county must 
  5.27  transfer all housing development and management powers relating 
  5.28  to that specific project to the authority. 
  5.29     Section 6.  [EFFECTIVE DATE.] 
  5.30     Sections 1 to 5 are effective July 1, 1999.