1.1 	A bill for an act
1.2 	relating to regional rail authorities; eliminating the power to impose property 
1.3 	taxes and other property tax funding of authorities; amending Minnesota Statutes 
1.4 	2010, sections 398A.04, subdivision 8; 398A.06, subdivision 2; 398A.07, 
1.5 	subdivision 2.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2010, section 398A.04, subdivision 8, is amended to 
1.8 	read:
1.9 		Subd. 8.Property taxation prohibited. Before deciding to exercise the power 
1.10 	to tax, the authority shall give six weeks' published notice in all municipalities in the 
1.11 	region. If a number of voters in the region equal to five percent of those who voted for 
1.12 	candidates for governor at the last gubernatorial election present a petition within nine 
1.13 	weeks of the first published notice to the secretary of state requesting that the matter be 
1.14 	submitted to popular vote, it shall be submitted at the next general election. The question 
1.15 	prepared shall be:
1.16 	"Shall the regional rail authority have the power to impose a property tax?

1.17		Yes 
........		
1.18		No ........"
		
1.19 	If a majority of those voting on the question approve or if no petition is presented 
1.20 	within the prescribed time the authority may levy a tax at any annual rate not exceeding 
1.21 	0.04835 percent of market value of all taxable property situated within the municipality 
1.22 	or municipalities named in its organization resolution. Its recording officer shall file, 
1.23 	on or before September 15, in the office of the county auditor of each county in which 
1.24 	territory under the jurisdiction of the authority is located a certified copy of the board 
1.25 	of commissioners' resolution levying the tax, and each county auditor shall assess and 
2.1 	extend upon the tax rolls of each municipality named in the organization resolution the 
2.2 	portion of the tax that bears the same ratio to the whole amount that the net tax capacity of 
2.3 	taxable property in that municipality bears to the net tax capacity of taxable property in 
2.4 	all municipalities named in the organization resolution. Collections of the tax shall be 
2.5 	remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991, 
2.6 	the amount levied for light rail transit purposes under this subdivision shall not exceed 75 
2.7 	percent of the amount levied in 1990 for light rail transit purposes under this subdivision.
2.8 	(a) An authority must not levy property taxes, except to the extent allowed by 
2.9 	paragraph (b).
2.10 	(b) The authority may levy property taxes only to the extent the following conditions 
2.11 	are satisfied:
2.12 	(1) the levy is required under the terms of general obligations bonds, issued by the 
2.13 	authority prior to April 1, 2011, to pay the bonds; and
2.14 	(2) the levy is reduced by any money available to the authority from other sources to 
2.15 	pay the bonds, in whole or part.

2.16 	EFFECTIVE DATE. This section is effective for taxes payable in 2012 and 
2.17 	thereafter.

2.18 	Sec. 2. Minnesota Statutes 2010, section 398A.06, subdivision 2, is amended to read:
2.19 		Subd. 2.Loans and donations. (a) The municipality may lend or donate money to 
2.20 	the authority and may levy taxes, appropriate money, and issue bonds for that purpose 
2.21 	in the manner and within the limitations prescribed by law, including but not limited 
2.22 	to chapter 475.
2.23 	(b) Notwithstanding paragraph (a), a municipality may not levy property taxes to 
2.24 	make loans or donations under this section and may only make loans and donations that 
2.25 	the municipality can document derive from sources other than property taxes.

2.26 	EFFECTIVE DATE. This section is effective for loans and donations made after 
2.27 	the day following final enactment.

2.28 	Sec. 3. Minnesota Statutes 2010, section 398A.07, subdivision 2, is amended to read:
2.29 		Subd. 2.Security. (a) Bonds may be made payable exclusively from the revenues 
2.30 	from one or more projects, or from one or more revenue producing contracts, or from 
2.31 	the authority's revenues generally, including but not limited to specified taxes which 
2.32 	the authority may levy or which a particular municipality may agree to levy for a 
2.33 	specified purpose, and may be additionally secured by a pledge of any grant, subsidy, 
3.1 	or contribution from any public agency, including but not limited to a participating 
3.2 	municipality, or any income or revenues from any source. They may be secured by a 
3.3 	mortgage or deed of trust of the whole or any part of the property of the authority. They 
3.4 	shall be payable solely from the revenues, funds, and property pledged or mortgaged for 
3.5 	their payment. No commissioner, officer, employee, agent, or trustee of the authority shall 
3.6 	be liable personally on its bonds or be subject to any personal liability or accountability 
3.7 	by reason of their issuance. Neither the state nor a county or other municipality except 
3.8 	the authority may pledge its faith and credit or taxing power or shall be obligated in any 
3.9 	manner for the payment of the bonds or interest on them, except as specifically provided 
3.10 	by agreement under section 398A.06; but nothing herein shall affect the obligation of the 
3.11 	state or municipality to perform any contract made by it with the authority, and when the 
3.12 	authority's rights under a contract with the state or a municipality are pledged by the 
3.13 	authority for the security of its bonds, the holders or a bond trustee may enforce the rights 
3.14 	as a third-party beneficiary. All bonds shall be negotiable within the meaning and for the 
3.15 	purposes of the Uniform Commercial Code, subject only to any registration requirement. 
3.16 	(b) The provisions of section 398A.04, subdivision 8, as amended by this act, apply 
3.17 	to bonds issued under this section after April 1, 2011.

3.18 	EFFECTIVE DATE. This section is effective April 1, 2011.