1.1                          A bill for an act 
  1.2             relating to public finance; updating and making 
  1.3             technical changes to public finance provisions related 
  1.4             to debt obligations, financing of certain equipment 
  1.5             and hardware and software; removing election 
  1.6             requirements for issuance of certain obligations; 
  1.7             authorizing flexibility in stating certain ballot 
  1.8             questions; updating and changing the Minnesota Bond 
  1.9             Allocation Act; providing for the powers of housing 
  1.10            and redevelopment authorities in Scott county and 
  1.11            Carver county; authorizing issuance of certain 
  1.12            obligations by the city of St. Paul; clarifying an 
  1.13            appropriation; amending Minnesota Statutes 2000, 
  1.14            sections 103B.555, by adding a subdivision; 165.10, 
  1.15            subdivision 2; 275.60; 373.01, subdivision 3; 373.45, 
  1.16            subdivision 3; 376.08, subdivisions 1, 3, by adding a 
  1.17            subdivision; 410.32; 412.301; 429.091, subdivision 7a; 
  1.18            474A.02, subdivisions 8, 13a, 22a, 22b, 23a; 474A.03, 
  1.19            subdivisions 1, 2a, 4; 474A.04, subdivisions 1a, 5; 
  1.20            474A.045; 474A.047, subdivisions 1, 2; 474A.061, 
  1.21            subdivisions 1, 2a, 2b, 2c, 4; 474A.091, subdivisions 
  1.22            2, 3, 4, 5, 6, by adding a subdivision; 474A.131, 
  1.23            subdivisions 1, 2, by adding a subdivision; 474A.14; 
  1.24            475.54, subdivision 1; 475.58, subdivision 1; 475.59; 
  1.25            Laws 1974, chapter 473; Laws 1980, chapter 482; 
  1.26            proposing coding for new law in Minnesota Statutes, 
  1.27            chapter 474A; repealing Minnesota Statutes 2000, 
  1.28            section 474A.061, subdivision 6. 
  1.29  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.30     Section 1.  Minnesota Statutes 2000, section 103B.555, is 
  1.31  amended by adding a subdivision to read: 
  1.32     Subd. 4.  [DISTRICT OBLIGATIONS.] The district, with 
  1.33  approval of the county board or joint county authority, may 
  1.34  exercise the powers of a city under chapter 429 and section 
  1.35  444.075, including, but not limited to: 
  1.36     (1) the levy of special assessments; 
  1.37     (2) the imposition of rates and charges; and 
  2.1      (3) the issuance of bonds; 
  2.2   to finance improvements that the district may undertake. 
  2.3      Sec. 2.  Minnesota Statutes 2000, section 165.10, 
  2.4   subdivision 2, is amended to read: 
  2.5      Subd. 2.  [BONDS ISSUED, SOLD, AND RETIRED.] Such bonds 
  2.6   shall be general obligations of the county and issued, sold, and 
  2.7   retired in the manner provided in chapter 475.  
  2.8      Sec. 3.  Minnesota Statutes 2000, section 275.60, is 
  2.9   amended to read: 
  2.10     275.60 [LEVY OR BOND REFERENDUM; BALLOT NOTICE.] 
  2.11     (a) Notwithstanding any general or special law or any 
  2.12  charter provisions, but subject to section 126C.17, subdivision 
  2.13  9, any question submitted to the voters by any local 
  2.14  governmental subdivision at a general or special election after 
  2.15  June 8, 1995, authorizing a property tax levy or tax rate 
  2.16  increase, including the issuance of debt obligations payable in 
  2.17  whole or in part from property taxes, must include on the ballot 
  2.18  the following notice in boldface type.:  
  2.19     "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING 
  2.20     FOR A PROPERTY TAX INCREASE." 
  2.21     (b) For purposes of this section and section 275.61, "local 
  2.22  governmental subdivision" includes counties, home rule and 
  2.23  statutory cities, towns, school districts, and all special 
  2.24  taxing districts.  This statement is in addition to any general 
  2.25  or special laws or any charter provisions that govern the 
  2.26  contents of a ballot question and, in the case of a question on 
  2.27  the issuance of debt obligations, may be supplemented by a 
  2.28  description of revenues pledged to payment of the obligations 
  2.29  that are intended as the primary source of payment. 
  2.30     (c) This section does not apply to a school district bond 
  2.31  election if the debt service payments are to be made entirely 
  2.32  from transfers of revenue from the capital fund to the debt 
  2.33  service fund. 
  2.34     Sec. 4.  Minnesota Statutes 2000, section 373.01, 
  2.35  subdivision 3, is amended to read: 
  2.36     Subd. 3.  [CAPITAL NOTES.] A county board may, by 
  3.1   resolution and without referendum, issue capital notes subject 
  3.2   to the county debt limit to purchase capital equipment useful 
  3.3   for county purposes that has an expected useful life at least 
  3.4   equal to the term of the notes.  The notes shall be payable in 
  3.5   not more than five years and shall be issued on terms and in a 
  3.6   manner the board determines.  A tax levy shall be made for 
  3.7   payment of the principal and interest on the notes, in 
  3.8   accordance with section 475.61, as in the case of bonds.  For 
  3.9   purposes of this subdivision, "capital equipment" means public 
  3.10  safety, ambulance, road construction or maintenance, medical, 
  3.11  and data processing equipment and computer hardware and software.
  3.12     Sec. 5.  Minnesota Statutes 2000, section 373.45, 
  3.13  subdivision 3, is amended to read: 
  3.14     Subd. 3.  [AGREEMENT.] (a) In order For specified debt 
  3.15  obligations of a county to be covered by the provisions of this 
  3.16  section, the county must enter an agreement with the authority 
  3.17  obligating the county to be bound by the provisions of this 
  3.18  section.  
  3.19     (b) This agreement must be in a form prescribed by the 
  3.20  authority and contain any provisions required by the authority, 
  3.21  including, at least, an obligation to: 
  3.22     (1) deposit with the paying agent three days before the 
  3.23  date on which the payment is due an amount sufficient to make 
  3.24  that payment; 
  3.25     (2) notify the authority, if the county will be unable to 
  3.26  make all or a portion of the payment; and 
  3.27     (3) include a provision in the bond resolution and county's 
  3.28  agreement with the paying agent for the debt obligation that 
  3.29  requires the paying agent to inform the commissioner if it 
  3.30  becomes aware of a default or potential default in the payment 
  3.31  of principal or interest on that issue or if, on the day two 
  3.32  business days before the date a payment is due on that issue, 
  3.33  there are insufficient funds to make the payment on deposit with 
  3.34  the paying agent.  
  3.35     (c) Funds invested in a refunding escrow account 
  3.36  established under section 475.67 that are to become available to 
  4.1   the paying agent on a principal or interest payment date are 
  4.2   deemed to be on deposit with the paying agent three business 
  4.3   days before the payment date.  
  4.4      (b) (d) The provisions of an agreement under this 
  4.5   subdivision are binding as to an issue as long as any debt 
  4.6   obligation of the issue remains outstanding. 
  4.7      (c) (e) This section is a contract with bondholders and may 
  4.8   not be amended or repealed for the covered bonds so long as the 
  4.9   covered bonds are outstanding and the obligations of the state 
  4.10  under this section are not a public debt of the state under 
  4.11  article XI, section 4, of the Minnesota Constitution, and the 
  4.12  legislature may, at any time, choose not to appropriate amounts 
  4.13  under subdivision 4, paragraph (b). 
  4.14     Sec. 6.  Minnesota Statutes 2000, section 376.08, 
  4.15  subdivision 1, is amended to read: 
  4.16     Subdivision 1.  [APPROPRIATIONS.] Except as provided in 
  4.17  subdivision subdivisions 2 and 4, the board of county 
  4.18  commissioners in any county with a population of 50,000 or less 
  4.19  may appropriate up to $65,000 annually from the general revenue 
  4.20  fund of the county for the acquisition of lands for hospital 
  4.21  purposes, and the construction, improvement, alterations, 
  4.22  equipment and maintenance of hospitals within the county.  The 
  4.23  board may also appropriate up to $25,000 from the general 
  4.24  revenue fund of the county for the acquisition of land and 
  4.25  construction of municipally owned nursing homes within the 
  4.26  county.  
  4.27     Sec. 7.  Minnesota Statutes 2000, section 376.08, 
  4.28  subdivision 3, is amended to read: 
  4.29     Subd. 3.  [LIMITATION ON HOSPITAL CAPACITY.] Section 
  4.30  144.551 applies to any project authorized by subdivision 2 or 4. 
  4.31  Subdivision Subdivisions 2 does and 4 do not authorize an 
  4.32  increase in the license capacity of the hospital or the 
  4.33  licensing, relocation, or redistribution of hospital beds except 
  4.34  as provided by section 144.551, subdivision 1, paragraph (b). 
  4.35     Sec. 8.  Minnesota Statutes 2000, section 376.08, is 
  4.36  amended by adding a subdivision to read: 
  5.1      Subd. 4.  [NO ELECTION FOR EXPENDITURE OF CERTAIN BOND 
  5.2   PROCEEDS.] Notwithstanding section 376.03, a county may by vote 
  5.3   of the majority of the board of county commissioners acquire, 
  5.4   construct, remodel, renovate, and equip hospital facilities to 
  5.5   the extent of money derived from general obligation bonds 
  5.6   authorized for that purpose by an election under section 475.58, 
  5.7   capital improvement bonds issued under a capital improvement 
  5.8   plan approved in accordance with section 373.40, or revenue 
  5.9   bonds issued under sections 447.45 to 447.50. 
  5.10     Sec. 9.  Minnesota Statutes 2000, section 410.32, is 
  5.11  amended to read: 
  5.12     410.32 [CITIES AUTHORIZED TO ISSUE CAPITAL NOTES FOR 
  5.13  CERTAIN EQUIPMENT ACQUISITIONS.] 
  5.14     Notwithstanding any contrary provision of other law or 
  5.15  charter, a home rule charter city may, by resolution and without 
  5.16  public referendum, issue capital notes subject to the city debt 
  5.17  limit to purchase public safety equipment, ambulance and other 
  5.18  medical equipment, road construction and maintenance equipment, 
  5.19  and other capital equipment having and computer software, if the 
  5.20  capital equipment and computer software has an expected useful 
  5.21  life at least as long as the term of the notes.  The notes shall 
  5.22  be payable in not more than five years and be issued on terms 
  5.23  and in the manner the city determines.  The total principal 
  5.24  amount of the capital notes issued in a fiscal year shall not 
  5.25  exceed 0.03 percent of the market value of taxable property in 
  5.26  the city for that year.  A tax levy shall be made for the 
  5.27  payment of the principal and interest on the notes, in 
  5.28  accordance with section 475.61, as in the case of bonds.  Notes 
  5.29  issued under this section shall require an affirmative vote of 
  5.30  two-thirds of the governing body of the city.  Notwithstanding a 
  5.31  contrary provision of other law or charter, a home rule charter 
  5.32  city may also issue capital notes subject to its debt limit in 
  5.33  the manner and subject to the limitations applicable to 
  5.34  statutory cities pursuant to section 412.301. 
  5.35     Sec. 10.  Minnesota Statutes 2000, section 412.301, is 
  5.36  amended to read: 
  6.1      412.301 [FINANCING PURCHASE OF CERTAIN EQUIPMENT.] 
  6.2      The council may issue certificates of indebtedness or 
  6.3   capital notes subject to the city debt limits to purchase public 
  6.4   safety equipment, ambulance equipment, road construction or 
  6.5   maintenance equipment, and other capital equipment having and 
  6.6   computer software, if the capital equipment and computer 
  6.7   software has an expected useful life at least as long as the 
  6.8   terms of the certificates or notes.  Such certificates or notes 
  6.9   shall be payable in not more than five years and shall be issued 
  6.10  on such terms and in such manner as the council may determine.  
  6.11  If the amount of the certificates or notes to be issued to 
  6.12  finance any such purchase exceeds 0.25 percent of the market 
  6.13  value of taxable property in the city, they shall not be issued 
  6.14  for at least ten days after publication in the official 
  6.15  newspaper of a council resolution determining to issue them; and 
  6.16  if before the end of that time, a petition asking for an 
  6.17  election on the proposition signed by voters equal to ten 
  6.18  percent of the number of voters at the last regular municipal 
  6.19  election is filed with the clerk, such certificates or notes 
  6.20  shall not be issued until the proposition of their issuance has 
  6.21  been approved by a majority of the votes cast on the question at 
  6.22  a regular or special election.  A tax levy shall be made for the 
  6.23  payment of the principal and interest on such certificates or 
  6.24  notes, in accordance with section 475.61, as in the case of 
  6.25  bonds.  
  6.26     Sec. 11.  Minnesota Statutes 2000, section 429.091, 
  6.27  subdivision 7a, is amended to read: 
  6.28     Subd. 7a.  [REVOLVING FUND BONDS.] The council may by 
  6.29  resolution establish a revolving fund for the payment of the 
  6.30  costs of any improvement or any waterworks systems, sewer 
  6.31  systems, or storm sewer systems described in section 444.075, 
  6.32  the costs of facilities to maintain streets and water, sewer, 
  6.33  and storm sewer systems and for the payment of any obligations 
  6.34  issued to pay the costs thereof of the facilities and systems 
  6.35  referred to in this subdivision or to refund obligations issued 
  6.36  for those purposes.  The council may create within the revolving 
  7.1   fund a separate construction account into which the municipality 
  7.2   may deposit the proceeds of any obligations payable from the 
  7.3   fund, the proceeds of any special assessments collected with 
  7.4   respect to any improvement, any net revenues of a waterworks, 
  7.5   sewer system, or storm sewer system described in section 444.075 
  7.6   or any other available funds of the municipality appropriated to 
  7.7   it.  Amounts on deposit in the construction account may be used 
  7.8   to pay the costs of any improvement or any waterworks, sewer 
  7.9   system, or storm sewer system described in section 444.075 or 
  7.10  any street or water, sewer, or storm sewer maintenance 
  7.11  facilities.  No funds may be expended for an improvement unless 
  7.12  at least 20 percent of the costs of each such improvement is to 
  7.13  be assessed against benefited property.  No funds may be 
  7.14  expended for a waterworks, sewer system, or storm sewer system, 
  7.15  other than a sewer system described in section 115.46, or 
  7.16  maintenance facilities unless the council estimates that the 
  7.17  costs will be recovered from the net revenues of the system or 
  7.18  any combined waterworks, sewer systems, or storm sewer systems 
  7.19  operated by the municipality.  The council may also create a 
  7.20  separate debt service account within the revolving fund for the 
  7.21  payment of principal of and interest on any obligations payable 
  7.22  therefrom.  Notwithstanding subdivision 4, the council is not 
  7.23  required to pledge any particular assessments or other revenues 
  7.24  to the payment of the obligations.  Collections of special 
  7.25  assessments or net revenues may be deposited in either the 
  7.26  construction account or the debt service account as the council 
  7.27  or an officer designated by the council may determine, having 
  7.28  due regard for anticipated collections of special assessments 
  7.29  and net revenues from improvements or waterworks, sewer systems, 
  7.30  or storm sewer systems financed in whole or in part from the 
  7.31  construction account, and taxes levied for the payment of the 
  7.32  obligations.  The council may issue obligations that are payable 
  7.33  primarily from the debt service account for the purpose of 
  7.34  providing funds to defray in whole or in part any expenses 
  7.35  incurred or estimated to be incurred in making the improvement 
  7.36  or improvements or in constructing the waterworks, sewer system, 
  8.1   or storm sewer system, including every item of cost of the kinds 
  8.2   authorized by section 475.65, and street and water, sewer, and 
  8.3   storm sewer maintenance facilities or to refund obligations 
  8.4   previously issued under this section or section 115.46 or 
  8.5   444.075.  The obligations may be general obligations to which 
  8.6   the full faith and credit of the municipality are pledged.  If 
  8.7   the special assessments to be levied and net revenues estimated 
  8.8   to be available for their payment are estimated to be at least 
  8.9   20 percent of the principal amount of the obligations, the 
  8.10  obligations may be issued without an election and shall not be 
  8.11  included in determining the net indebtedness of the municipality 
  8.12  under the provisions of any law limiting net indebtedness.  
  8.13     Sec. 12.  Minnesota Statutes 2000, section 474A.02, 
  8.14  subdivision 8, is amended to read: 
  8.15     Subd. 8.  [FEDERAL TAX LAW.] "Federal tax law" means those 
  8.16  provisions of the Internal Revenue Code of 1986, as 
  8.17  amended through December 31, 1990, that limit the aggregate 
  8.18  amount of obligations of a specified type or types which may be 
  8.19  issued by an issuer during a calendar year whose interest is 
  8.20  excluded from gross income for purposes of federal income 
  8.21  taxation. 
  8.22     Sec. 13.  Minnesota Statutes 2000, section 474A.02, 
  8.23  subdivision 13a, is amended to read: 
  8.24     Subd. 13a.  [SMALL ISSUE POOL.] "Small issue pool" means 
  8.25  the amount of the annual volume cap allocated under section 
  8.26  474A.061, that is available for the issuance of enterprise zone 
  8.27  facility bonds authorized under Public Law Number 103-66, 
  8.28  section 13301, small issue bonds to finance manufacturing 
  8.29  projects, and the agricultural development bond beginning farmer 
  8.30  and agricultural business enterprise loan program authorized in 
  8.31  sections 41C.01 to 41C.13, and student loan bonds issued by the 
  8.32  Minnesota higher education services office. 
  8.33     Sec. 14.  Minnesota Statutes 2000, section 474A.02, 
  8.34  subdivision 22a, is amended to read: 
  8.35     Subd. 22a.  [PUBLIC FACILITIES POOL.] "Public facilities 
  8.36  pool" means the amount of the annual volume cap allocated under 
  9.1   section 474A.061, which is available for the issuance of public 
  9.2   facility bonds or student loan bonds. 
  9.3      Sec. 15.  Minnesota Statutes 2000, section 474A.02, 
  9.4   subdivision 22b, is amended to read: 
  9.5      Subd. 22b.  [PUBLIC FACILITIES PROJECT.] "Public facilities 
  9.6   project" means any publicly owned facility, or facility owned by 
  9.7   a nonprofit organization that is used for district heating or 
  9.8   cooling, that is eligible to be financed with the proceeds of 
  9.9   public facilities bonds as defined under section 474A.02, 
  9.10  subdivision 23a. 
  9.11     Sec. 16.  Minnesota Statutes 2000, section 474A.02, 
  9.12  subdivision 23a, is amended to read: 
  9.13     Subd. 23a.  [QUALIFIED BONDS.] "Qualified bonds" means the 
  9.14  specific type or types of obligations that are subject to the 
  9.15  annual volume cap.  Qualified bonds include the following types 
  9.16  of obligations as defined in federal tax law: 
  9.17     (a) "public facility bonds" means "exempt facility bonds" 
  9.18  as defined in federal tax law, except for residential rental 
  9.19  project bonds, which are those obligations issued to finance 
  9.20  airports, docks and wharves, mass commuting facilities, 
  9.21  facilities for the furnishing of water, sewage facilities, solid 
  9.22  waste disposal facilities, facilities for the local furnishing 
  9.23  of electric energy or gas, local district heating or cooling 
  9.24  facilities, and qualified hazardous waste facilities.  New bonds 
  9.25  and other obligations are ineligible to receive state 
  9.26  allocations or entitlement authority for public facility 
  9.27  projects under this section if they have been issued:  
  9.28     (1) for the purpose of refinancing, refunding, or otherwise 
  9.29  defeasing existing debt; and 
  9.30     (2) more than one calendar year prior to the date of 
  9.31  application; 
  9.32     (b) "residential rental project bonds" which are those 
  9.33  obligations issued to finance qualified residential rental 
  9.34  projects; 
  9.35     (c) "mortgage bonds"; 
  9.36     (d) "small issue bonds" issued to finance manufacturing 
 10.1   projects and the acquisition or improvement of agricultural real 
 10.2   or personal property under sections 41C.01 to 41C.13; 
 10.3      (e) "student loan bonds" issued by or on behalf of the 
 10.4   Minnesota higher education services office; 
 10.5      (f) "redevelopment bonds"; 
 10.6      (g) "governmental bonds" with a nonqualified amount in 
 10.7   excess of $15,000,000 as set forth in section 141(b)5 of federal 
 10.8   tax law; and 
 10.9      (h) "enterprise zone facility bonds" issued to finance 
 10.10  facilities located within empowerment zones or enterprise 
 10.11  communities, as authorized under Public Law Number 103-66, 
 10.12  section 13301. 
 10.13     Sec. 17.  Minnesota Statutes 2000, section 474A.03, 
 10.14  subdivision 1, is amended to read: 
 10.15     Subdivision 1.  [UNDER FEDERAL TAX LAW; ALLOCATIONS.] At 
 10.16  the beginning of each calendar year after December 31, 1997 
 10.17  2001, the commissioner shall determine the aggregate dollar 
 10.18  amount of the annual volume cap under federal tax law for the 
 10.19  calendar year, and of this amount the commissioner shall make 
 10.20  the following allocation:  
 10.21     (1) $63,000,000 $74,530,000 to the small issue pool; 
 10.22     (2) $59,000,000 $122,060,000 to the housing pool, 
 10.23  $37,000,000 of which 31 percent of the adjusted allocation is 
 10.24  reserved until the day after the first last Monday in February 
 10.25  July for single-family housing programs; 
 10.26     (3) $10,500,000 $12,750,000 to the public facilities pool; 
 10.27  and 
 10.28     (4) amounts to be allocated as provided in subdivision 2a.  
 10.29     If the annual volume cap is greater or less than the amount 
 10.30  of bonding authority allocated under clauses (1) to (4) and 
 10.31  subdivision 2a, paragraph (a), clauses (1) to (4), the 
 10.32  allocation must be adjusted so that each adjusted allocation is 
 10.33  the same percentage of the annual volume cap as each original 
 10.34  allocation is of the total bonding authority originally 
 10.35  allocated. 
 10.36     Sec. 18.  Minnesota Statutes 2000, section 474A.03, 
 11.1   subdivision 2a, is amended to read: 
 11.2      Subd. 2a.  [ENTITLEMENT ISSUER ALLOCATION.] (a) The 
 11.3   commissioner shall make the following allocation to the 
 11.4   Minnesota housing finance agency and the following cities and 
 11.5   county:  
 11.6      (1) $53,750,000 $84,940,000 per year to the Minnesota 
 11.7   housing finance agency, less any amount received in the previous 
 11.8   year under section 474A.091, subdivision 6; 
 11.9      (2) $21,000,000 $33,190,000 per year to the city of 
 11.10  Minneapolis; 
 11.11     (3) $15,750,000 $24,890,000 per year to the city of Saint 
 11.12  Paul; and 
 11.13     (4) $10,500,000 $16,600,000 per year to the Dakota county 
 11.14  community development agency for the county of Dakota and all 
 11.15  political subdivisions located within the county. 
 11.16     (b) Entitlement allocations provided under this subdivision 
 11.17  must be used for mortgage bonds, mortgage credit certificates, 
 11.18  public facility bonds, or residential rental project bonds, 
 11.19  except that entitlement issuers may also use their allocations 
 11.20  for public facility bonds, and may carry forward their 
 11.21  allocations for any qualified bond as defined under section 
 11.22  474A.02, subdivision 23a. 
 11.23     (c) Data on the home purchase price amount, mortgage 
 11.24  amount, income, household size, and race of the households 
 11.25  served with the proceeds of mortgage revenue bonds and mortgage 
 11.26  credit certificates in the previous year must be submitted by 
 11.27  each entitlement issuer to the Minnesota housing finance agency 
 11.28  by December 31 of each year.  Compliance by the Minnesota 
 11.29  housing finance agency with the provisions of section 462A.073, 
 11.30  subdivision 5, shall be deemed compliance with the reporting 
 11.31  requirements of this subdivision. 
 11.32     Sec. 19.  Minnesota Statutes 2000, section 474A.03, 
 11.33  subdivision 4, is amended to read: 
 11.34     Subd. 4.  [APPLICATION FEE.] Every entitlement issuer and 
 11.35  other issuer shall pay to the commissioner a nonrefundable 
 11.36  application fee to offset the state cost of program 
 12.1   administration.  The application fee is $20 for each $100,000 of 
 12.2   entitlement or allocation requested, with the request rounded to 
 12.3   the nearest $100,000.  The minimum fee is $20.  Fees received by 
 12.4   the commissioner must be credited to the general fund.  
 12.5   Application fees for projects of entitlement issuers must be 
 12.6   submitted to the commissioner with the notice of issuance of 
 12.7   bonds, notice of use of mortgage credit certificates, and notice 
 12.8   of carry forward.  Each entitlement issuer must pay its 
 12.9   application fee in full for that calendar year to the 
 12.10  commissioner no later than when the first notice of issuance of 
 12.11  bonds, notice of use of mortgage credit certificates, or notice 
 12.12  of carry forward is submitted to the commissioner by that issuer.
 12.13     Sec. 20.  Minnesota Statutes 2000, section 474A.04, 
 12.14  subdivision 1a, is amended to read: 
 12.15     Subd. 1a.  [ENTITLEMENT RESERVATIONS; CARRYFORWARD; 
 12.16  DEDUCTION.] Any amount returned by an entitlement issuer before 
 12.17  July 15 shall be reallocated through the housing pool.  Any 
 12.18  amount returned on or after July 15 shall be reallocated through 
 12.19  the unified pool.  An amount returned after the last Monday in 
 12.20  November shall be reallocated to the Minnesota housing finance 
 12.21  agency.  Any amount of bonding authority that an entitlement 
 12.22  issuer carries forward under federal tax law that is not 
 12.23  permanently issued or for which the governing body of the 
 12.24  entitlement issuer has not enacted a resolution electing to use 
 12.25  the authority for mortgage credit certificates by July 15 and 
 12.26  has not provided a notice of issue to the commissioner before 
 12.27  4:30 p.m. on the last business day in December of the succeeding 
 12.28  calendar year shall be deducted from the entitlement allocation 
 12.29  for that entitlement issuer for the current calendar year.  Any 
 12.30  amount deducted from an entitlement issuer's allocation under 
 12.31  this subdivision shall be reallocated through the unified pool.  
 12.32  An entitlement issuer must permanently issue all carryforward 
 12.33  authority or enact a resolution electing to use all carryforward 
 12.34  authority for mortgage credit certificates prior to issuing any 
 12.35  current year authority of that entitlement issuer in the next 
 12.36  succeeding calendar year.  Any amount deducted from an 
 13.1   entitlement issuer's allocation under this subdivision shall be 
 13.2   reallocated to other entitlement issuers, the housing pool, the 
 13.3   small issue pool, and the public facilities pool on a 
 13.4   proportional basis consistent with section 474A.03. 
 13.5      Sec. 21.  Minnesota Statutes 2000, section 474A.04, 
 13.6   subdivision 5, is amended to read: 
 13.7      Subd. 5.  [NOTICE OF ENTITLEMENT ALLOCATION.] As soon as 
 13.8   possible in each calendar year, the commissioner shall provide 
 13.9   to each entitlement issuer a written notice of the amount of its 
 13.10  post on the department's Web site the amount of each entitlement 
 13.11  allocation.  
 13.12     Sec. 22.  Minnesota Statutes 2000, section 474A.045, is 
 13.13  amended to read: 
 13.14     474A.045 [SCORING SYSTEM FOR ENTERPRISE ZONE FACILITY 
 13.15  PROJECTS AND MANUFACTURING PROJECTS.] 
 13.16     The following criteria must be used in determining the 
 13.17  allocation of enterprise zone facility bonds and small issue 
 13.18  bonds for manufacturing projects.  The issuer must prepare and 
 13.19  submit to the commissioner a public purpose scoring worksheet 
 13.20  that presents the data and methods used in determining the total 
 13.21  score under this section.  The total score is the sum of the 
 13.22  following: 
 13.23     (1) the number of direct new jobs in the state generated by 
 13.24  the proposed project for the next two years per $100,000 of 
 13.25  proposed allocation multiplied by 15; 
 13.26     (2) the number of direct existing jobs in the state 
 13.27  multiplied by .625 due to the proposed project for the next two 
 13.28  years per $100,000 of proposed allocation multiplied by 15; 
 13.29     (3) the average hourly wage paid to employees by the 
 13.30  proposed project for the next two years, exclusive of benefits 
 13.31  mandated by law, based on the following scale: 
 13.32  Wages paid per hour             $ 8    $10    $12    $15 
 13.33  Non-Metro area points awarded    10     15     20     20 
 13.34  Seven-County Metro Area 
 13.35  points awarded                    0     10     15     20 
 13.36     For purposes of this section, the seven-county metropolitan 
 14.1   area includes Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, 
 14.2   and Washington counties; 
 14.3      (4) the quotient of the estimated total net increase in 
 14.4   property taxes generated in the state by the project in the 
 14.5   first full year of operation divided by the proposed bond 
 14.6   allocation, multiplied by 500; and 
 14.7      (5) the seasonally unadjusted unemployment rate in the 
 14.8   community where the proposed project is located measured as a 
 14.9   percent of the state's unemployment rate, multiplied by ten. 
 14.10     The community seasonally unadjusted unemployment rate used 
 14.11  in determining the points under clause (5) must be the most 
 14.12  recent rate for the city or county in which the proposed project 
 14.13  is located, as provided by the commissioner of economic security.
 14.14     (6) 20 points for projects that locate in an incorporated 
 14.15  area or a planned urban growth area as defined by section 
 14.16  462.352, subdivision 18; 
 14.17     (7) 20 points for brownfield projects located in a state or 
 14.18  federal Superfund site, a voluntary investigation and cleanup 
 14.19  site, or a brownfield site, all as defined by the Minnesota 
 14.20  pollution control agency; and 
 14.21     (8) 20 points for projects with favorable environmental 
 14.22  citizenship as evidenced by no nonforgivable or combination 
 14.23  administrative penalty orders, stipulation agreements, consent 
 14.24  decrees, or other enforcement orders containing a monetary 
 14.25  penalty by the Minnesota pollution control agency over the past 
 14.26  three years or pending at the time of application. 
 14.27     Sec. 23.  Minnesota Statutes 2000, section 474A.047, 
 14.28  subdivision 1, is amended to read: 
 14.29     Subdivision 1.  [ELIGIBILITY.] (a) An issuer may only use 
 14.30  the proceeds from residential rental bonds if the proposed 
 14.31  project meets one of the following requirements: 
 14.32     (1) the proposed project is a single room occupancy project 
 14.33  and all the units of the project will be occupied by individuals 
 14.34  whose incomes at the time of their initial residency in the 
 14.35  project are 50 percent or less of the greater of the statewide 
 14.36  or county median income adjusted for household size as 
 15.1   determined by the federal Department of Housing and Urban 
 15.2   Development; 
 15.3      (2) the proposed project is a multifamily project where at 
 15.4   least 75 percent of the units have two or more bedrooms and at 
 15.5   least one-third of the 75 percent have three or more bedrooms; 
 15.6   or 
 15.7      (3) the proposed project is a multifamily project that 
 15.8   meets the following requirements: 
 15.9      (i) the proposed project is the rehabilitation of an 
 15.10  existing building which meets the requirements for minimum 
 15.11  rehabilitation expenditures in sections 42(e)(2) and 42(e)(3)(A) 
 15.12  of the Internal Revenue Code; 
 15.13     (ii) the proposed project involves participation by the 
 15.14  Minnesota housing finance agency or a local unit of government 
 15.15  in the financing of the acquisition or rehabilitation of the 
 15.16  project.  For purposes of this subdivision, "participation" 
 15.17  means an activity other than the issuance of the bonds; and 
 15.18     (iii) the proposed project must be occupied by individuals 
 15.19  or families whose incomes at the time of their initial residency 
 15.20  in the project meet the requirements of section 42(g) of the 
 15.21  Internal Revenue Code. 
 15.22     (1) the proposed residential rental project meets the 
 15.23  requirements of section 142(d) of the Internal Revenue Code 
 15.24  regarding the incomes of the occupants of the housing; and 
 15.25     (2) the maximum rent for at least 20 percent of the units 
 15.26  in the proposed residential rental project do not exceed the 
 15.27  area fair market rent or exception fair market rents for 
 15.28  existing housing, if applicable, as established by the federal 
 15.29  Department of Housing and Urban Development. 
 15.30     (b) The maximum rent for a proposed single room occupancy 
 15.31  unit under paragraph (a), clause (1), is 30 percent of the 
 15.32  amount equal to 30 percent of the greater of the statewide or 
 15.33  county median income for a one-member household as determined by 
 15.34  the federal Department of Housing and Urban Development.  The 
 15.35  maximum rent for at least 75 percent of the units of a 
 15.36  multifamily project under paragraph (a), clause (2), is 30 
 16.1   percent of the amount equal to 50 percent of the greater of the 
 16.2   statewide or county median income as determined by the federal 
 16.3   Department of Housing and Urban Development based on a household 
 16.4   size with 1.5 persons per bedroom. 
 16.5      (c) The proceeds from residential rental bonds may be used 
 16.6   for a project for which project-based federal rental assistance 
 16.7   payments are made only if: 
 16.8      (1) the owner of the project enters into a binding 
 16.9   agreement with the Minnesota housing finance agency under which 
 16.10  the owner is obligated to extend any existing low-income 
 16.11  affordability restrictions and any contract or agreement for 
 16.12  rental assistance payments for the maximum term permitted, 
 16.13  including any renewals thereof; and 
 16.14     (2) the Minnesota housing finance agency certifies that 
 16.15  project reserves will be maintained at closing of the bond issue 
 16.16  and budgeted in future years at the lesser of: 
 16.17     (i) the level described in Minnesota Rules, part 4900.0010, 
 16.18  subpart 7, item A, subitem (2), effective May 1, 1997; or 
 16.19     (ii) the level of project reserves available prior to the 
 16.20  bond issue, provided that additional money is available to 
 16.21  accomplish repairs and replacements needed at the time of bond 
 16.22  issue. 
 16.23     Sec. 24.  Minnesota Statutes 2000, section 474A.047, 
 16.24  subdivision 2, is amended to read: 
 16.25     Subd. 2.  [15-YEAR AGREEMENT.] Prior to the issuance of 
 16.26  residential rental bonds, the developer of the project for which 
 16.27  the bond proceeds will be used must enter into a 15-year 
 16.28  agreement with the issuer that specifies the maximum rental 
 16.29  rates of the rent-restricted units in the project and the income 
 16.30  levels of the residents of the project occupying 
 16.31  income-restricted units.  The Such rental rates and income 
 16.32  levels must be within the limitations established under 
 16.33  subdivision 1.  The developer must annually certify to the 
 16.34  issuer over the term of the agreement that the rental rates for 
 16.35  the rent-restricted units are within the limitations under 
 16.36  subdivision 1.  The issuer may request individual certification 
 17.1   of the income of all residents of the project income-restricted 
 17.2   units.  The commissioner may request from the issuer a copy of 
 17.3   the annual certification prepared by the developer.  The 
 17.4   commissioner may require the issuer to request individual 
 17.5   certification of all residents of the project income-restricted 
 17.6   units. 
 17.7      Sec. 25.  Minnesota Statutes 2000, section 474A.061, 
 17.8   subdivision 1, is amended to read: 
 17.9      Subdivision 1.  [APPLICATION.] (a) An issuer may apply for 
 17.10  an allocation under this section by submitting to the department 
 17.11  an application on forms provided by the department, accompanied 
 17.12  by (1) a preliminary resolution, (2) a statement of bond counsel 
 17.13  that the proposed issue of obligations requires an allocation 
 17.14  under this chapter and the Internal Revenue Code, (3) the type 
 17.15  of qualified bonds to be issued, (4) an application deposit in 
 17.16  the amount of one percent of the requested allocation before the 
 17.17  last Monday in July, or in the amount of two percent of the 
 17.18  requested allocation on or after the last Monday in July, (5) a 
 17.19  public purpose scoring worksheet for manufacturing project and 
 17.20  enterprise zone facility project applications, and (6) for 
 17.21  residential rental projects, a statement from the applicant or 
 17.22  bond counsel as to whether the project preserves existing 
 17.23  federally subsidized housing for residential rental project 
 17.24  applications and whether the project is restricted to persons 
 17.25  who are 55 years of age or older.  The issuer must pay the 
 17.26  application deposit by a check made payable to the department of 
 17.27  finance.  The Minnesota housing finance agency, the Minnesota 
 17.28  rural finance authority, and the Minnesota higher education 
 17.29  services office may apply for and receive an allocation under 
 17.30  this section without submitting an application deposit. 
 17.31     (b) An entitlement issuer may not apply for an allocation 
 17.32  from the housing pool or from the public facilities pool unless 
 17.33  it has either permanently issued bonds equal to the amount of 
 17.34  its entitlement allocation for the current year plus any amount 
 17.35  of bonding authority carried forward from previous years or 
 17.36  returned for reallocation all of its unused entitlement 
 18.1   allocation.  For purposes of this subdivision, its entitlement 
 18.2   allocation includes an amount obtained under section 474A.04, 
 18.3   subdivision 6.  This paragraph does not apply to an application 
 18.4   from the Minnesota housing finance agency for an allocation 
 18.5   under subdivision 2a for cities who choose to have the agency 
 18.6   issue bonds on their behalf.  
 18.7      (c) If an application is rejected under this section, the 
 18.8   commissioner must notify the applicant and return the 
 18.9   application deposit to the applicant within 30 days unless the 
 18.10  applicant requests in writing that the application be 
 18.11  resubmitted.  The granting of an allocation of bonding authority 
 18.12  under this section must be evidenced by a certificate of 
 18.13  allocation. 
 18.14     Sec. 26.  Minnesota Statutes 2000, section 474A.061, 
 18.15  subdivision 2a, is amended to read: 
 18.16     Subd. 2a.  [HOUSING POOL ALLOCATION.] (a) On the first 
 18.17  business day that falls on a Monday of the calendar year and the 
 18.18  first Monday in February Commencing on the second Tuesday in 
 18.19  January and continuing on each Monday through July 15, the 
 18.20  commissioner shall allocate available bonding authority in from 
 18.21  the housing pool to applications received by on or before the 
 18.22  Monday of the previous preceding week for residential rental 
 18.23  projects that are not restricted to persons who are 55 years of 
 18.24  age or older and that meet the eligibility criteria under 
 18.25  section 474A.047, except that allocations may be made to 
 18.26  projects that are restricted to persons who are 55 years of age 
 18.27  or older, if the project preserves existing federally subsidized 
 18.28  housing.  Projects that preserve existing federally subsidized 
 18.29  housing shall be allocated available bonding authority in the 
 18.30  housing pool for residential rental projects prior to the 
 18.31  allocation of available bonding authority to other eligible 
 18.32  residential rental projects.  Allocations of available bonding 
 18.33  authority from the housing pool for eligible residential rental 
 18.34  projects shall be awarded in the following order of priority:  
 18.35  (1) projects that preserve existing federally subsidized 
 18.36  housing; (2) projects that are not restricted to persons who are 
 19.1   55 years of age or older; and (3) other residential rental 
 19.2   projects.  Prior to May 15, no allocation shall be made to a 
 19.3   project restricted to persons who are 55 years of age or older.  
 19.4   If an issuer that receives an allocation under this paragraph 
 19.5   does not issue obligations equal to all or a portion of the 
 19.6   allocation received within 120 days of the allocation or returns 
 19.7   the allocation to the commissioner, the amount of the allocation 
 19.8   is canceled and returned for reallocation through the housing 
 19.9   pool or to the unified pool after July 15. 
 19.10     (b) After February January 1, and through February January 
 19.11  15, the Minnesota housing finance agency may accept applications 
 19.12  from cities for single-family housing programs which meet 
 19.13  program requirements as follows:  
 19.14     (1) the housing program must meet a locally identified 
 19.15  housing need and be economically viable; 
 19.16     (2) the adjusted income of home buyers may not exceed 80 
 19.17  percent of the greater of statewide or area median income as 
 19.18  published by the Department of Housing and Urban Development, 
 19.19  adjusted for household size; 
 19.20     (3) house price limits may not exceed the federal price 
 19.21  limits established for mortgage revenue bond programs.  Data on 
 19.22  the home purchase price amount, mortgage amount, income, 
 19.23  household size, and race of the households served in the 
 19.24  previous year's single-family housing program, if any, must be 
 19.25  included in each application; and 
 19.26     (4) for applicants who choose to have the agency issue 
 19.27  bonds on their behalf, an application fee pursuant to section 
 19.28  474A.03, subdivision 4, and an application deposit equal to one 
 19.29  percent of the requested allocation must be submitted to the 
 19.30  Minnesota housing finance agency before the agency forwards the 
 19.31  list specifying the amounts allocated to the commissioner under 
 19.32  paragraph (c) (d).  The agency shall submit the city's 
 19.33  application fee and application deposit to the commissioner when 
 19.34  requesting an allocation from the housing pool. 
 19.35     Applications by a consortium shall include the name of each 
 19.36  member of the consortium and the amount of allocation requested 
 20.1   by each member. 
 20.2      The Minnesota housing finance agency may accept 
 20.3   applications from June 15 through June 30 from cities for 
 20.4   single-family housing programs which meet program requirements 
 20.5   specified under clauses (1) to (4) if bonding authority is 
 20.6   available in the housing pool.  Applications will be accepted 
 20.7   from June 15 to June 30 only from cities that received an 
 20.8   allotment in the same calendar year and used at least 75 percent 
 20.9   of their allotment by June 1. 
 20.10     (c) Any amounts remaining in the housing pool after July 15 
 20.11  are available for single-family housing programs for cities that 
 20.12  applied in January and received an allocation under this section 
 20.13  in the same calendar year.  For a city that chooses to issue 
 20.14  bonds on its own behalf or pursuant to a joint powers agreement, 
 20.15  the agency must allot available bonding authority based on the 
 20.16  formula in paragraphs (d) and (f).  Allocations will be made 
 20.17  loan by loan, on a first come, first served basis 
 20.18  among applicant cities on whose behalf the Minnesota housing 
 20.19  finance agency issues bonds.  The agency must allot available 
 20.20  bonding authority.  
 20.21     Any city that received an allocation pursuant to paragraph 
 20.22  (f) in the same calendar year that wishes to issue bonds on its 
 20.23  own behalf or pursuant to a joint powers agreement for an amount 
 20.24  becoming available for single-family housing programs after July 
 20.25  15 shall notify the Minnesota housing finance agency by July 
 20.26  15.  The Minnesota housing finance agency shall notify each city 
 20.27  making a request of the amount of its allocation within three 
 20.28  business days after July 15.  The city must comply with 
 20.29  paragraph (f).  
 20.30     For purposes of paragraphs (a) to (g) (h), "city" means a 
 20.31  county or a consortium of local government units that agree 
 20.32  through a joint powers agreement to apply together for 
 20.33  single-family housing programs, and has the meaning given it in 
 20.34  section 462C.02, subdivision 6.  "Agency" means the Minnesota 
 20.35  housing finance agency.  
 20.36     (c) (d) The total amount of allocation for mortgage bonds 
 21.1   for one city is limited to the lesser of:  (i) the amount 
 21.2   requested, or (ii) the product of the total amount available for 
 21.3   mortgage bonds from the housing pool, multiplied by the ratio of 
 21.4   each applicant's population as determined by the most recent 
 21.5   estimate of the city's population released by the state 
 21.6   demographer's office to the total of all the applicants' 
 21.7   population, except that each applicant shall be allocated a 
 21.8   minimum of $100,000 regardless of the amount requested or the 
 21.9   amount determined under the formula in clause (ii).  If a city 
 21.10  applying for an allocation is located within a county that has 
 21.11  also applied for an allocation, the city's population will be 
 21.12  deducted from the county's population in calculating the amount 
 21.13  of allocations under this paragraph. 
 21.14     Upon determining the amount of each applicant's allocation, 
 21.15  the agency shall forward to the commissioner a list specifying 
 21.16  the amounts allotted to each application and application deposit 
 21.17  checks to the commissioner with all application fees and 
 21.18  deposits from applicants who choose to have the agency issue 
 21.19  bonds on their behalf. 
 21.20     Total allocations from the housing pool for single-family 
 21.21  housing programs may not exceed 31 percent of the adjusted 
 21.22  allocation to the housing pool until after July 15. 
 21.23     (d) (e) The agency may issue bonds on behalf of 
 21.24  participating cities.  The agency shall request an allocation 
 21.25  from the commissioner for all applicants who choose to have the 
 21.26  agency issue bonds on their behalf and the commissioner shall 
 21.27  allocate the requested amount to the agency.  The agency may 
 21.28  request an allocation at any time after the first Monday second 
 21.29  Tuesday in February January and through the last Monday in July, 
 21.30  but may request an allocation no later than the last Monday in 
 21.31  July.  After awarding an allocation and receiving a notice of 
 21.32  issuance for the mortgage bonds issued on behalf of the 
 21.33  participating cities, the commissioner shall transfer the 
 21.34  application deposits to the Minnesota housing finance agency to 
 21.35  be returned to the participating cities.  The commissioner 
 21.36  Minnesota housing finance agency shall return any application 
 22.1   deposit to a city that paid an application deposit under 
 22.2   paragraph (b), clause (4), but was not part of the list 
 22.3   forwarded to the commissioner under paragraph (c) (d).  
 22.4      (e) (f) A city may choose to issue bonds on its own behalf 
 22.5   or through a joint powers agreement or may use bonding authority 
 22.6   for mortgage credit certificates and may request an allocation 
 22.7   from the commissioner by forwarding an application with an 
 22.8   application fee pursuant to section 474A.03, subdivision 4, and 
 22.9   a one percent application deposit to the commissioner no later 
 22.10  than the Monday of the week preceding an allocation.  If the 
 22.11  total amount requested by all applicants exceeds the amount 
 22.12  available in the pool, the city may not receive a greater 
 22.13  allocation than the amount it would have received under the list 
 22.14  forwarded by the Minnesota housing finance agency to the 
 22.15  commissioner.  No city may request or receive an allocation from 
 22.16  the commissioner until the list under paragraph (c) (d) has been 
 22.17  forwarded to the commissioner.  A city must request an 
 22.18  allocation from the commissioner no later than 14 days before 
 22.19  the unified pool is created pursuant to section 474A.091, 
 22.20  subdivision 1 the last Monday in July.  On and after the first 
 22.21  Monday in February and through the last Monday in July, No city 
 22.22  may receive an allocation from the housing pool for mortgage 
 22.23  bonds which has not first applied to the Minnesota housing 
 22.24  finance agency.  The commissioner shall allocate the requested 
 22.25  amount to the city or cities subject to the limitations under 
 22.26  this paragraph.  
 22.27     If a city issues mortgage bonds from an allocation received 
 22.28  under this paragraph, the issuer must provide for the recycling 
 22.29  of funds into new loans.  If the issuer is not able to provide 
 22.30  for recycling, the issuer must notify the commissioner in 
 22.31  writing of the reason that recycling was not possible and the 
 22.32  reason the issuer elected not to have the Minnesota housing 
 22.33  finance agency issue the bonds.  "Recycling" means the use of 
 22.34  money generated from the repayment and prepayment of loans for 
 22.35  further eligible loans or for the redemption of bonds and the 
 22.36  issuance of current refunding bonds. 
 23.1      (f) (g) No entitlement city or county or city in an 
 23.2   entitlement county may apply for or be allocated authority to 
 23.3   issue mortgage bonds or use mortgage credit certificates from 
 23.4   the housing pool.  No city in an entitlement county may apply 
 23.5   for or be allocated authority to issue residential rental bonds 
 23.6   from the housing pool or the unified pool. 
 23.7      (g) (h) A city that does not use at least 50 percent of its 
 23.8   allotment by the date applications are due for the first 
 23.9   allocation that is made from the housing pool for single-family 
 23.10  housing programs in the immediately succeeding calendar year may 
 23.11  not apply to the housing pool for a single-family mortgage bond 
 23.12  or mortgage credit certificate program allocation that exceeds 
 23.13  the amount of its allotment for the preceding year that was used 
 23.14  by the city in the immediately preceding year or receive an 
 23.15  allotment from the housing pool in the succeeding calendar year 
 23.16  that exceeds the amount of its allotment for the preceding year 
 23.17  that was used in the preceding year.  The minimum allotment is 
 23.18  $100,000 for an allocation made prior to July 15, regardless of 
 23.19  the amount used in the preceding calendar year, except that a 
 23.20  city whose allocation in the preceding year was the minimum 
 23.21  amount of $100,000 and who did not use at least 50 percent of 
 23.22  its allocation from the preceding year is ineligible for an 
 23.23  allocation in the immediate succeeding calendar year.  Each 
 23.24  local government unit in a consortium must meet the requirements 
 23.25  of this paragraph. 
 23.26     Sec. 27.  Minnesota Statutes 2000, section 474A.061, 
 23.27  subdivision 2b, is amended to read: 
 23.28     Subd. 2b.  [SMALL ISSUE POOL ALLOCATION.] On the first 
 23.29  Monday in January that is a business day through the last Monday 
 23.30  in July Commencing on the second Tuesday in January and 
 23.31  continuing on each Monday through the last Monday in July, the 
 23.32  commissioner shall allocate available bonding authority from the 
 23.33  small issue pool on Monday of each week to applications received 
 23.34  on or before the Monday of the preceding week for manufacturing 
 23.35  projects and enterprise zone facility projects.  From the first 
 23.36  Monday in January that is a business day second Tuesday in 
 24.1   January through the last Monday in July, the commissioner shall 
 24.2   reserve $5,000,000 of the available bonding authority from the 
 24.3   small issue pool for applications for agricultural development 
 24.4   bond loan projects of the Minnesota rural finance authority.  
 24.5      Beginning in calendar year 2002, on the second Tuesday in 
 24.6   January through the last Monday in July, the commissioner shall 
 24.7   reserve $10,000,000 of available bonding authority in the small 
 24.8   issue pool for applications for student loan bonds of or on 
 24.9   behalf of the Minnesota higher education services office.  The 
 24.10  total amount of allocations for student loan bonds from the 
 24.11  small issue pool may not exceed $10,000,000 per year. 
 24.12     The commissioner shall reserve $10,000,000 until the day 
 24.13  after the last Monday in February, $10,000,000 until the day 
 24.14  after the last Monday in April, and $10,000,000 until the day 
 24.15  after the last Monday in June in the small issue pool 
 24.16  for enterprise zone facility projects and manufacturing 
 24.17  projects.  The amount of allocation provided to an issuer for a 
 24.18  specific enterprise zone facility project or manufacturing 
 24.19  project will be based on the number of points received for the 
 24.20  proposed project under the scoring system under section 
 24.21  474A.045.  Proposed projects that receive 50 points or more are 
 24.22  eligible for all of the proposed allocation.  Proposed projects 
 24.23  that receive less than 50 points are eligible to receive a 
 24.24  proportionally reduced share of the proposed authority, based 
 24.25  upon the number of points received. 
 24.26     If there are two or more applications for manufacturing and 
 24.27  enterprise zone facility projects from the small issue pool and 
 24.28  there is insufficient bonding authority to provide allocations 
 24.29  for all projects in any one week, the available bonding 
 24.30  authority shall be awarded based on the number of points awarded 
 24.31  a project under section 474A.045, with those projects receiving 
 24.32  the greatest number of points receiving allocation first.  If 
 24.33  two or more applications receive an equal number of points, 
 24.34  available bonding authority shall be awarded by lot unless 
 24.35  otherwise agreed to by the respective issuers. 
 24.36     Sec. 28.  Minnesota Statutes 2000, section 474A.061, 
 25.1   subdivision 2c, is amended to read: 
 25.2      Subd. 2c.  [PUBLIC FACILITIES POOL ALLOCATION.] From the 
 25.3   beginning of the calendar year and continuing for a period of 
 25.4   120 days, the commissioner shall reserve $5,000,000 $3,000,000 
 25.5   of the available bonding authority from the public facilities 
 25.6   pool for applications for public facilities projects to be 
 25.7   financed by the Western Lake Superior Sanitary District.  On the 
 25.8   first Monday in January that is a business day through the last 
 25.9   Monday in July Commencing on the second Tuesday in January and 
 25.10  continuing on each Monday through the last Monday in July, the 
 25.11  commissioner shall allocate available bonding authority from the 
 25.12  public facilities pool on Monday of each week to applications 
 25.13  for eligible public facilities projects received on or before 
 25.14  the Monday of the preceding week.  If there are two or more 
 25.15  applications for public facilities projects from the pool and 
 25.16  there is insufficient available bonding authority to provide 
 25.17  allocations for all projects in any one week, the available 
 25.18  bonding authority shall be awarded by lot unless otherwise 
 25.19  agreed to by the respective issuers. 
 25.20     Sec. 29.  Minnesota Statutes 2000, section 474A.061, 
 25.21  subdivision 4, is amended to read: 
 25.22     Subd. 4.  [RETURN OF ALLOCATION; DEPOSIT REFUND.] (a) If an 
 25.23  issuer that receives an allocation under this section determines 
 25.24  that it will not issue obligations equal to all or a portion of 
 25.25  the allocation received under this section within 120 days of 
 25.26  allocation or within the time period permitted by federal tax 
 25.27  law, whichever is less, the issuer must notify the department.  
 25.28  If the issuer notifies the department or the 120-day period 
 25.29  since allocation has expired prior to the last Monday in July, 
 25.30  the amount of allocation is canceled and returned for 
 25.31  reallocation through the pool from which it was originally 
 25.32  allocated.  If the issuer notifies the department or the 120-day 
 25.33  period since allocation has expired on or after the last Monday 
 25.34  in July, the amount of allocation is canceled and returned for 
 25.35  reallocation through the unified pool.  If the issuer notifies 
 25.36  the department after the last Monday in November, the amount of 
 26.1   allocation is canceled and returned for reallocation to the 
 26.2   Minnesota housing finance agency.  To encourage a competitive 
 26.3   application process, the commissioner shall reserve, for new 
 26.4   applications, the amount of allocation that is canceled and 
 26.5   returned for reallocation under this section for a minimum of 
 26.6   seven calendar days. 
 26.7      (b) An issuer that returns for reallocation all or a 
 26.8   portion of an allocation received under this section within 120 
 26.9   days of allocation shall receive within 30 days a refund equal 
 26.10  to:  
 26.11     (1) one-half of the application deposit for the amount of 
 26.12  bonding authority returned within 30 days of receiving 
 26.13  allocation; 
 26.14     (2) one-fourth of the application deposit for the amount of 
 26.15  bonding authority returned between 31 and 60 days of receiving 
 26.16  allocation; and 
 26.17     (3) one-eighth of the application deposit for the amount of 
 26.18  bonding authority returned between 61 and 120 days of receiving 
 26.19  allocation. 
 26.20     (c) No refund shall be available for allocations returned 
 26.21  120 or more days after receiving the allocation or beyond the 
 26.22  last Monday in November.  This subdivision does not apply to the 
 26.23  Minnesota housing finance agency or the Minnesota rural finance 
 26.24  authority.  
 26.25     Sec. 30.  [474A.062] [HESO 120-DAY ISSUANCE EXEMPTION.] 
 26.26     The Minnesota higher education services office is exempt 
 26.27  from the 120-day issuance requirements in this chapter and may 
 26.28  carry forward allocations for student loan bonds into three 
 26.29  successive calendar years, subject to carryforward notice 
 26.30  requirements of section 474A.131, subdivision 2.  The maximum 
 26.31  cumulative carryforward is limited to $25,000,000. 
 26.32     Sec. 31.  Minnesota Statutes 2000, section 474A.091, 
 26.33  subdivision 2, is amended to read: 
 26.34     Subd. 2.  [APPLICATION.] Issuers may apply for an 
 26.35  allocation under this section by submitting to the department an 
 26.36  application on forms provided by the department accompanied by 
 27.1   (1) a preliminary resolution, (2) a statement of bond counsel 
 27.2   that the proposed issue of obligations requires an allocation 
 27.3   under this chapter and the Internal Revenue Code, (3) the type 
 27.4   of qualified bonds to be issued, (4) an application deposit in 
 27.5   the amount of two percent of the requested allocation, and (5) a 
 27.6   public purpose scoring worksheet for manufacturing and 
 27.7   enterprise zone applications, and (6) for residential rental 
 27.8   projects, a statement from the applicant or bond counsel as to 
 27.9   whether the project preserves existing federally subsidized 
 27.10  housing and whether the project is restricted to persons who are 
 27.11  55 years of age or older.  The issuer must pay the application 
 27.12  deposit by check.  An entitlement issuer may not apply for an 
 27.13  allocation for public facility bonds, residential rental project 
 27.14  bonds, or mortgage bonds under this section unless it has either 
 27.15  permanently issued bonds equal to the amount of its entitlement 
 27.16  allocation for the current year plus any amount carried forward 
 27.17  from previous years or returned for reallocation all of its 
 27.18  unused entitlement allocation.  For purposes of this 
 27.19  subdivision, its entitlement allocation includes an amount 
 27.20  obtained under section 474A.04, subdivision 6. 
 27.21     Notwithstanding the restrictions imposed on entitlement 
 27.22  issuers under this subdivision, the Minnesota housing finance 
 27.23  agency may not apply for receive an allocation for mortgage 
 27.24  bonds under this section until after prior to the last first 
 27.25  Monday in August.  Notwithstanding the restrictions imposed on 
 27.26  unified pool allocations after September 1 under subdivision 3, 
 27.27  paragraph (c)(2), the Minnesota housing finance agency October, 
 27.28  but may be awarded allocations for mortgage bonds from the 
 27.29  unified pool on or after September 1 the first Monday in 
 27.30  October.  The Minnesota housing finance agency, the Minnesota 
 27.31  higher education services office, and the Minnesota rural 
 27.32  finance authority may apply for and receive an allocation under 
 27.33  this section without submitting an application deposit. 
 27.34     Sec. 32.  Minnesota Statutes 2000, section 474A.091, 
 27.35  subdivision 3, is amended to read: 
 27.36     Subd. 3.  [ALLOCATION PROCEDURE.] (a) The commissioner 
 28.1   shall allocate available bonding authority under this section on 
 28.2   the Monday of every other week beginning with the first Monday 
 28.3   in August through and on the last Monday in November.  
 28.4   Applications for allocations must be received by the department 
 28.5   by 4:30 p.m. on the Monday preceding the Monday on which 
 28.6   allocations are to be made.  If a Monday falls on a holiday, the 
 28.7   allocation will be made or the applications must be received by 
 28.8   the next business day after the holiday.  
 28.9      (b) On or before September 1, allocations shall be awarded 
 28.10  from the unified pool in the following order of priority: 
 28.11     (1) applications for enterprise zone facility bonds; 
 28.12     (2) applications for small issue bonds for manufacturing 
 28.13  projects; 
 28.14     (3) applications for small issue bonds for agricultural 
 28.15  development bond loan projects; 
 28.16     (4) applications for residential rental project bonds; 
 28.17     (5) applications for public facility projects funded by 
 28.18  public facility bonds; 
 28.19     (6) applications for redevelopment bonds; 
 28.20     (7) applications for mortgage bonds; and 
 28.21     (8) applications for governmental bonds. 
 28.22     Allocations for residential rental projects may only be 
 28.23  made during the first allocation in August.  The amount of 
 28.24  allocation provided to an issuer for a specific manufacturing 
 28.25  project will be based on the number of points received for the 
 28.26  proposed project under the scoring system under section 474A.045.
 28.27  Proposed manufacturing projects that receive 50 points or more 
 28.28  are eligible for all of the proposed allocation.  Proposed 
 28.29  manufacturing projects that receive less than 50 points under 
 28.30  section 474A.045 are only eligible to receive a proportionally 
 28.31  reduced share of the proposed authority, based upon the number 
 28.32  of points received.  
 28.33     (b) Prior to October 1, only the following applications 
 28.34  shall be awarded allocations from the unified pool.  Allocations 
 28.35  shall be awarded in the following order of priority: 
 28.36     (1) applications for residential rental project bonds; 
 29.1      (2) applications for small issue bonds for manufacturing 
 29.2   projects; and 
 29.3      (3) applications for small issue bonds for agricultural 
 29.4   development bond loan projects. 
 29.5      (c) On the first Monday in October through the last Monday 
 29.6   in November, allocations shall be awarded from the unified pool 
 29.7   in the following order of priority: 
 29.8      (1) applications for student loan bonds issued by or on 
 29.9   behalf of the Minnesota higher education services office; 
 29.10     (2) applications for mortgage bonds; 
 29.11     (3) applications for public facility projects funded by 
 29.12  public facility bonds; 
 29.13     (4) applications for small issue bonds for manufacturing 
 29.14  projects; 
 29.15     (5) applications for small issue bonds for agricultural 
 29.16  development bond loan projects; 
 29.17     (6) applications for residential rental project bonds; 
 29.18     (7) applications for enterprise zone facility bonds; 
 29.19     (8) applications for governmental bonds; and 
 29.20     (9) applications for redevelopment bonds. 
 29.21     (d) If there are two or more applications for manufacturing 
 29.22  projects from the unified pool and there is insufficient bonding 
 29.23  authority to provide allocations for all manufacturing projects 
 29.24  in any one allocation period, the available bonding authority 
 29.25  shall be awarded based on the number of points awarded a project 
 29.26  under section 474A.045 with those projects receiving the 
 29.27  greatest number of points receiving allocation first.  If two or 
 29.28  more applications for manufacturing projects receive an equal 
 29.29  amount of points, available bonding authority shall be awarded 
 29.30  by lot unless otherwise agreed to by the respective issuers. 
 29.31     (e) If there are two or more applications for enterprise 
 29.32  zone facility projects from the unified pool and there is 
 29.33  insufficient bonding authority to provide allocations for all 
 29.34  enterprise zone facility projects in any one allocation period, 
 29.35  the available bonding authority shall be awarded based on the 
 29.36  number of points awarded a project under section 474A.045 with 
 30.1   those projects receiving the greatest number of points receiving 
 30.2   allocation first.  If two or more applications for enterprise 
 30.3   zone facility projects receive an equal amount of points, 
 30.4   available bonding authority shall be awarded by lot unless 
 30.5   otherwise agreed to by the respective issuers. 
 30.6      (f) If there are two or more applications for residential 
 30.7   rental projects from the unified pool and there is insufficient 
 30.8   bonding authority to provide allocations for all residential 
 30.9   rental projects in any one allocation period, the available 
 30.10  bonding authority shall be awarded in the following order of 
 30.11  priority:  (1) projects that preserve existing federally 
 30.12  subsidized housing; (2) projects that are not restricted to 
 30.13  persons who are 55 years of age or older; and (3) other 
 30.14  residential rental projects. 
 30.15     (c)(1) (g) From the first Monday in August through the last 
 30.16  Monday in November, $20,000,000 of bonding authority or an 
 30.17  amount equal to the total annual amount of bonding authority 
 30.18  allocated to the small issue pool under section 474A.03, 
 30.19  subdivision 1, less the amount allocated to issuers from the 
 30.20  small issue pool for that year, whichever is less, is reserved 
 30.21  within the unified pool for small issue bonds to the extent such 
 30.22  amounts are available within the unified pool.  On the first 
 30.23  Monday in September through the last Monday in November, 
 30.24  $2,500,000 of bonding authority or an amount equal to the total 
 30.25  annual amount of bonding authority allocated to the public 
 30.26  facilities pool under section 474A.03, subdivision 1, less the 
 30.27  amount allocated to issuers from the public facilities pool for 
 30.28  that year, whichever is less, is reserved within the unified 
 30.29  pool for public facility bonds to the extent such amounts are 
 30.30  available within the unified pool.  
 30.31     (2) (h) The total amount of allocations for mortgage bonds 
 30.32  from the housing pool and the unified pool may not exceed: 
 30.33     (i) (1) $10,000,000 for any one city; or 
 30.34     (ii) (2) $20,000,000 for any number of cities in any one 
 30.35  county. 
 30.36     An allocation for mortgage bonds may be used for mortgage 
 31.1   credit certificates. 
 31.2      (d) After September 1, allocations shall be awarded from 
 31.3   the unified pool only for the following types of qualified bonds:
 31.4   small issue bonds, public facility bonds to finance publicly 
 31.5   owned facility projects, residential rental project bonds, and 
 31.6   enterprise zone facility bonds. 
 31.7      (i) The total amount of allocations for student loan bonds 
 31.8   from the unified pool may not exceed $10,000,000 per year. 
 31.9      (j) If there is insufficient bonding authority to fund all 
 31.10  projects within any qualified bond category other than 
 31.11  enterprise zone facility projects, manufacturing projects, and 
 31.12  residential rental projects, allocations shall be awarded by lot 
 31.13  unless otherwise agreed to by the respective issuers.  
 31.14     (k) If an application is rejected, the commissioner must 
 31.15  notify the applicant and return the application deposit to the 
 31.16  applicant within 30 days unless the applicant requests in 
 31.17  writing that the application be resubmitted.  
 31.18     (l) The granting of an allocation of bonding authority 
 31.19  under this section must be evidenced by issuance of a 
 31.20  certificate of allocation. 
 31.21     Sec. 33.  Minnesota Statutes 2000, section 474A.091, is 
 31.22  amended by adding a subdivision to read: 
 31.23     Subd. 3a.  [MORTGAGE BONDS.] (a) Bonding authority 
 31.24  remaining in the unified pool on October 1 is available for 
 31.25  single-family housing programs for cities that applied in 
 31.26  January and received an allocation under section 474A.061, 
 31.27  subdivision 2a, in the same calendar year.  The Minnesota 
 31.28  housing finance agency shall receive an allocation for mortgage 
 31.29  bonds pursuant to this section, minus any amounts for a city or 
 31.30  consortium that intends to issue bonds on its own behalf under 
 31.31  paragraph (c).  
 31.32     (b) The agency may issue bonds on behalf of participating 
 31.33  cities.  The agency shall request an allocation from the 
 31.34  commissioner for all applicants who choose to have the agency 
 31.35  issue bonds on their behalf and the commissioner shall allocate 
 31.36  the requested amount to the agency.  Allocations shall be 
 32.1   awarded by the commissioner each Monday commencing on the first 
 32.2   Monday in October through the last Monday in November for 
 32.3   applications received by 4:30 p.m. on the Monday of the week 
 32.4   preceding an allocation. 
 32.5      For cities who choose to have the agency issue bonds on 
 32.6   their behalf, allocations will be made loan by loan, on a first 
 32.7   come, first served basis among the cities.  The agency shall 
 32.8   submit an application fee pursuant to section 474A.03, 
 32.9   subdivision 4, and an application deposit equal to two percent 
 32.10  of the requested allocation to the commissioner when requesting 
 32.11  an allocation from the unified pool.  After awarding an 
 32.12  allocation and receiving a notice of issuance for mortgage bonds 
 32.13  issued on behalf of the participating cities, the commissioner 
 32.14  shall transfer the application deposit to the Minnesota housing 
 32.15  finance agency.  
 32.16     For purposes of paragraphs (a) to (d), "city" means a 
 32.17  county or a consortium of local government units that agree 
 32.18  through a joint powers agreement to apply together for 
 32.19  single-family housing programs, and has the meaning given it in 
 32.20  section 462C.02, subdivision 6.  "Agency" means the Minnesota 
 32.21  housing finance agency.  
 32.22     (c) Any city that received an allocation pursuant to 
 32.23  section 474A.061, subdivision 2a, paragraph (f), in the current 
 32.24  year that wishes to receive an additional allocation from the 
 32.25  unified pool and issue bonds on its own behalf or pursuant to a 
 32.26  joint powers agreement shall notify the Minnesota housing 
 32.27  finance agency by the third Monday in September.  The total 
 32.28  amount of allocation for mortgage bonds for a city choosing to 
 32.29  issue bonds on its own behalf or through a joint powers 
 32.30  agreement is limited to the lesser of:  (i) the amount 
 32.31  requested, or (ii) the product of the total amount available for 
 32.32  mortgage bonds from the unified pool, multiplied by the ratio of 
 32.33  the population of each city that applied in January and received 
 32.34  an allocation under section 474A.061, subdivision 2a, in the 
 32.35  same calendar year, as determined by the most recent estimate of 
 32.36  the city's population released by the state demographer's office 
 33.1   to the total of the population of all the cities that applied in 
 33.2   January and received an allocation under section 474A.061, 
 33.3   subdivision 2a, in the same calendar year.  If a city choosing 
 33.4   to issue bonds on its own behalf or through a joint powers 
 33.5   agreement is located within a county that has also chosen to 
 33.6   issue bonds on its own behalf or through a joint powers 
 33.7   agreement, the city's population will be deducted from the 
 33.8   county's population in calculating the amount of allocations 
 33.9   under this paragraph.  
 33.10     The Minnesota housing finance agency shall notify each city 
 33.11  choosing to issue bonds on its own behalf or pursuant to a joint 
 33.12  powers agreement of the amount of its allocation by October 15.  
 33.13  Upon determining the amount of the allocation of each choosing 
 33.14  to issue bonds on its own behalf or through a joint powers 
 33.15  agreement, the agency shall forward a list specifying the 
 33.16  amounts allotted to each city. 
 33.17     A city that chooses to issue bonds on its own behalf or 
 33.18  through a joint powers agreement may request an allocation from 
 33.19  the commissioner by forwarding an application with an 
 33.20  application fee pursuant to section 474A.03, subdivision 4, and 
 33.21  an application deposit equal to two percent of the requested 
 33.22  amount to the commissioner no later than 4:30 p.m. on the Monday 
 33.23  of the week preceding an allocation.  Allocations to cities that 
 33.24  choose to issue bonds on their own behalf shall be awarded by 
 33.25  the commissioner on the first Monday after October 15 through 
 33.26  the last Monday in November.  No city may receive an allocation 
 33.27  from the commissioner after the last Monday in November.  The 
 33.28  commissioner shall allocate the requested amount to the city or 
 33.29  cities subject to the limitations under this subdivision. 
 33.30     If a city issues mortgage bonds from an allocation received 
 33.31  under this paragraph, the issuer must provide for the recycling 
 33.32  of funds into new loans.  If the issuer is not able to provide 
 33.33  for recycling, the issuer must notify the commissioner in 
 33.34  writing of the reason that recycling was not possible and the 
 33.35  reason the issuer elected not to have the Minnesota housing 
 33.36  finance agency issue the bonds.  "Recycling" means the use of 
 34.1   money generated from the repayment and prepayment of loans for 
 34.2   further eligible loans or for the redemption of bonds and the 
 34.3   issuance of current refunding bonds. 
 34.4      (d) No entitlement city or county or city in an entitlement 
 34.5   county may apply for or be allocated authority to issue mortgage 
 34.6   bonds or use mortgage credit certificates from the unified pool. 
 34.7      (e) An allocation awarded to the agency for mortgage bonds 
 34.8   under this section may be carried forward by the agency into the 
 34.9   next succeeding calendar year subject to notice requirements 
 34.10  under section 474A.131 and is available until the last business 
 34.11  day in December of that succeeding calendar year. 
 34.12     Sec. 34.  Minnesota Statutes 2000, section 474A.091, 
 34.13  subdivision 4, is amended to read: 
 34.14     Subd. 4.  [MORTGAGE BONDS REMAINING BONDING AUTHORITY.] All 
 34.15  remaining bonding authority available for allocation under this 
 34.16  section on December 1, is allocated to the Minnesota housing 
 34.17  finance agency. 
 34.18     Sec. 35.  Minnesota Statutes 2000, section 474A.091, 
 34.19  subdivision 5, is amended to read: 
 34.20     Subd. 5.  [RETURN OF ALLOCATION; DEPOSIT REFUND.] (a) If an 
 34.21  issuer that receives an allocation under this section determines 
 34.22  that it will not issue obligations equal to all or a portion of 
 34.23  the allocation received under this section within 120 days of 
 34.24  the allocation or within the time period permitted by federal 
 34.25  tax law, whichever is less, the issuer must notify the 
 34.26  department.  If the issuer notifies the department or the 
 34.27  120-day period since allocation has expired prior to the last 
 34.28  Monday in November, the amount of allocation is canceled and 
 34.29  returned for reallocation through the unified pool.  If the 
 34.30  issuer notifies the department on or after the last Monday in 
 34.31  November, the amount of allocation is canceled and returned for 
 34.32  reallocation to the Minnesota housing finance agency.  To 
 34.33  encourage a competitive application process, the commissioner 
 34.34  shall reserve, for new applications, the amount of allocation 
 34.35  that is canceled and returned for reallocation under this 
 34.36  section for a minimum of seven calendar days. 
 35.1      (b) An issuer that returns for reallocation all or a 
 35.2   portion of an allocation received under this section within 120 
 35.3   days of the allocation shall receive within 30 days a refund 
 35.4   equal to:  
 35.5      (1) one-half of the application deposit for the amount of 
 35.6   bonding authority returned within 30 days of receiving the 
 35.7   allocation; 
 35.8      (2) one-fourth of the application deposit for the amount of 
 35.9   bonding authority returned between 31 and 60 days of receiving 
 35.10  the allocation; and 
 35.11     (3) one-eighth of the application deposit for the amount of 
 35.12  bonding authority returned between 61 and 120 days of receiving 
 35.13  the allocation. 
 35.14     (c) No refund of the application deposit shall be available 
 35.15  for allocations returned on or after the last Monday in November.
 35.16  This subdivision does not apply to the Minnesota housing finance 
 35.17  agency, or the Minnesota rural finance authority. 
 35.18     Sec. 36.  Minnesota Statutes 2000, section 474A.091, 
 35.19  subdivision 6, is amended to read: 
 35.20     Subd. 6.  [FINAL ALLOCATION; CARRYFORWARD.] Notwithstanding 
 35.21  the notice requirements of section 474A.131, subdivision 2, any 
 35.22  bonding authority remaining unissued by the Minnesota housing 
 35.23  finance agency on the last business day in December shall be 
 35.24  carried forward into the next calendar year by the commissioner 
 35.25  for the Minnesota housing finance agency in accordance with 
 35.26  section 474A.131, subdivision 2. 
 35.27     Sec. 37.  Minnesota Statutes 2000, section 474A.131, 
 35.28  subdivision 1, is amended to read: 
 35.29     Subdivision 1.  [NOTICE OF ISSUE.] Each issuer that issues 
 35.30  bonds with an allocation received under this chapter shall 
 35.31  provide a notice of issue to the department on forms provided by 
 35.32  the department stating: 
 35.33     (1) the date of issuance of the bonds; 
 35.34     (2) the title of the issue; 
 35.35     (3) the principal amount of the bonds; 
 35.36     (4) the type of qualified bonds under federal tax law; and 
 36.1      (5) the dollar amount of the bonds issued that were subject 
 36.2   to the annual volume cap; and 
 36.3      (6) for entitlement issuers, whether the allocation is from 
 36.4   current year entitlement authority or is from carry forward 
 36.5   authority. 
 36.6      For obligations that are issued as a part of a series of 
 36.7   obligations, a notice must be provided for each series.  A 
 36.8   penalty of one-half of the amount of the application deposit not 
 36.9   to exceed $5,000 shall apply to any issue of obligations for 
 36.10  which a notice of issue is not provided to the department within 
 36.11  five business days after issuance or before the last Monday in 
 36.12  December, whichever occurs first.  Within 30 days after receipt 
 36.13  of a notice of issue the department shall refund a portion of 
 36.14  the application deposit equal to one percent of the amount of 
 36.15  the bonding authority actually issued if a one percent 
 36.16  application deposit was made, or equal to two percent of the 
 36.17  amount of the bonding authority actually issued if a two percent 
 36.18  application deposit was made, less any penalty amount. 
 36.19     Sec. 38.  Minnesota Statutes 2000, section 474A.131, is 
 36.20  amended by adding a subdivision to read: 
 36.21     Subd. 1b.  [DEADLINE FOR ISSUANCE OF QUALIFIED BONDS.] If 
 36.22  an issuer fails to notify the department before 4:30 p.m. on the 
 36.23  last business day in December of issuance of obligations 
 36.24  pursuant to an allocation received for any qualified bond 
 36.25  project or issuance of an entitlement allocation, the allocation 
 36.26  is canceled and the bonding authority is allocated to the 
 36.27  Minnesota housing finance agency for carryforward by the 
 36.28  commissioner under section 474A.091, subdivision 6. 
 36.29     Sec. 39.  Minnesota Statutes 2000, section 474A.131, 
 36.30  subdivision 2, is amended to read: 
 36.31     Subd. 2.  [CARRYFORWARD NOTICE.] If an issuer intends to 
 36.32  carry forward an allocation received under this chapter, it must 
 36.33  notify the department in writing before 4:30 p.m. on the last 
 36.34  Monday of business day in December.  This notice requirement 
 36.35  does not apply to the Minnesota housing finance agency for the 
 36.36  carryforward of unallocated unified pool balances.  
 37.1      Sec. 40.  Minnesota Statutes 2000, section 474A.14, is 
 37.2   amended to read: 
 37.3      474A.14 [NOTICE OF AVAILABLE AUTHORITY.] 
 37.4      The department shall publish in the State Register a 
 37.5   provide at its official Web site a written notice of the amount 
 37.6   of bonding authority in the housing, small issue, and public 
 37.7   facilities pools as soon after January 1 as possible.  The 
 37.8   department shall publish in the State Register a provide at its 
 37.9   official Web site a written notice of the amount of bonding 
 37.10  authority available for allocation in the unified pool as soon 
 37.11  after August 1 as possible. 
 37.12     Sec. 41.  Minnesota Statutes 2000, section 475.54, 
 37.13  subdivision 1, is amended to read: 
 37.14     Subdivision 1.  [IN INSTALLMENTS; EXCEPTION; ANNUAL LIMIT.] 
 37.15  Except as provided in subdivision 3, 5a, 15, or 17, or as 
 37.16  expressly authorized in another law, all obligations of each 
 37.17  issue shall mature or be subject to mandatory sinking fund 
 37.18  redemption in installments, the first not later than three years 
 37.19  and the last not later than 30 years from the date of the issue; 
 37.20  or 40 years or the useful life of the asset, whichever is less, 
 37.21  for municipal water and wastewater treatment systems and 
 37.22  essential community facilities financed or guaranteed by the 
 37.23  United States Department of Agriculture.  No amount of principal 
 37.24  of the issue payable in any calendar year shall exceed five 
 37.25  times the an amount of equal to the smallest amount payable in 
 37.26  any preceding calendar year ending three years or more after the 
 37.27  issue date multiplied: 
 37.28     (1) by five, in the case of obligations maturing not later 
 37.29  than 25 years from the date of issue; and 
 37.30     (2) by six, in the case of obligations maturing 25 years or 
 37.31  later from the date of issue.  
 37.32     Sec. 42.  Minnesota Statutes 2000, section 475.58, 
 37.33  subdivision 1, is amended to read: 
 37.34     Subdivision 1.  [APPROVAL BY ELECTORS; EXCEPTIONS.] 
 37.35  Obligations authorized by law or charter may be issued by any 
 37.36  municipality upon obtaining the approval of a majority of the 
 38.1   electors voting on the question of issuing the obligations, but 
 38.2   an election shall not be required to authorize obligations 
 38.3   issued: 
 38.4      (1) to pay any unpaid judgment against the municipality; 
 38.5      (2) for refunding obligations; 
 38.6      (3) for an improvement or improvement program, which 
 38.7   obligation is payable wholly or partly from the proceeds of 
 38.8   special assessments levied upon property specially benefited by 
 38.9   the improvement or by an improvement within the improvement 
 38.10  program, or of taxes levied upon the increased value of property 
 38.11  within a district for the development of which the improvement 
 38.12  is undertaken, including obligations which are the general 
 38.13  obligations of the municipality, if the municipality is entitled 
 38.14  to reimbursement in whole or in part from the proceeds of such 
 38.15  special assessments or taxes and not less than 20 percent of the 
 38.16  cost of the improvement or the improvement program is to be 
 38.17  assessed against benefited property or is to be paid from the 
 38.18  proceeds of federal grant funds or a combination thereof, or is 
 38.19  estimated to be received from such taxes within the district; 
 38.20     (4) payable wholly from the income of revenue producing 
 38.21  conveniences; 
 38.22     (5) under the provisions of a home rule charter which 
 38.23  permits the issuance of obligations of the municipality without 
 38.24  election; 
 38.25     (6) under the provisions of a law which permits the 
 38.26  issuance of obligations of a municipality without an election; 
 38.27     (7) to fund pension or retirement fund liabilities pursuant 
 38.28  to section 475.52, subdivision 6; 
 38.29     (8) under a capital improvement plan under section 373.40; 
 38.30     (9) to fund facilities as provided in subdivision 3; and 
 38.31     (10) under sections 469.1813 to 469.1815 (property tax 
 38.32  abatement authority bonds); and 
 38.33     (10) to pay for reconstruction of streets if special 
 38.34  assessments were levied to pay all or part of the initial costs 
 38.35  of the streets. 
 38.36     Sec. 43.  Minnesota Statutes 2000, section 475.59, is 
 39.1   amended to read: 
 39.2      475.59 [MANNER OF SUBMISSION; NOTICE.] 
 39.3      When the governing body of a municipality resolves to issue 
 39.4   bonds for any purpose requiring the approval of the electors, it 
 39.5   shall provide for submission of the proposition of their 
 39.6   issuance at a general or special election or town or school 
 39.7   district meeting.  Notice of such election or meeting shall be 
 39.8   given in the manner required by law and shall state the maximum 
 39.9   amount and the purpose of the proposed issue.  In any school 
 39.10  district, the school board or board of education may, according 
 39.11  to its judgment and discretion, submit as a single ballot 
 39.12  question or as two or more separate questions in the notice of 
 39.13  election and ballots the proposition of their issuance for any 
 39.14  one or more of the following, stated conjunctively or in the 
 39.15  alternative:  acquisition or enlargement of sites, acquisition, 
 39.16  betterment, erection, furnishing, equipping of one or more new 
 39.17  schoolhouses, remodeling, repairing, improving, adding to, 
 39.18  betterment, furnishing, equipping of one or more existing 
 39.19  schoolhouses.  In any city, town, or county, the governing body 
 39.20  may, according to its judgment and discretion, submit as a 
 39.21  single ballot question or as two or more separate questions in 
 39.22  the notice of election and ballots the proposition of their 
 39.23  issuance, stated conjunctively or in the alternative, for the 
 39.24  acquisition, construction, or improvement of any facilities at 
 39.25  one or more locations. 
 39.26     Sec. 44.  Laws 1974, chapter 473, is amended to read: 
 39.27     Section 1.  [SCOTT COUNTY; HOUSING AND REDEVELOPMENT 
 39.28  AUTHORITY.] There is hereby created in Scott county a public 
 39.29  body corporate and politic, to be known as the Scott county 
 39.30  housing and redevelopment authority, having all of the powers 
 39.31  and duties of a housing and redevelopment authority under the 
 39.32  provisions of the municipal housing and redevelopment act, 
 39.33  Minnesota Statutes, Sections 462.411 to 462.711, and acts 
 39.34  amendatory thereof; which act applies to the county of 
 39.35  Scott 469.001 to 469.047, and having those powers of an economic 
 39.36  development authority under the provisions of Minnesota 
 40.1   Statutes, sections 469.090 to 469.180 as are granted to it by 
 40.2   Scott county as provided below.  For the purposes of applying 
 40.3   the provisions of the municipal housing and redevelopment 
 40.4   act Minnesota Statutes, sections 469.001 to 469.047 and 469.090 
 40.5   to 469.180, to Scott county, the county has all the powers and 
 40.6   duties of a municipality, the county board has all of the powers 
 40.7   and duties of a governing body, the chairman of the county board 
 40.8   has all of the powers and duties of a mayor, and the area of 
 40.9   operation includes the area within the territorial boundaries of 
 40.10  the county. 
 40.11     Sec. 2.  [APPLICATION.] Subdivision 1.  This act shall not 
 40.12  limit or restrict any existing housing and redevelopment 
 40.13  authority or prevent a municipality from creating an authority.  
 40.14  The county shall not exercise jurisdiction in any municipality 
 40.15  where a municipal housing and redevelopment authority is 
 40.16  established. 
 40.17     Subd. 2.  A municipal housing and redevelopment authority 
 40.18  may request the Scott county housing and redevelopment authority 
 40.19  to handle the housing duties of the authority and, in such an 
 40.20  event, the Scott county housing and redevelopment authority 
 40.21  shall act and have exclusive jurisdiction for housing in the 
 40.22  municipality pursuant to the provisions of the municipal housing 
 40.23  and redevelopment act, Minnesota Statutes, Sections 462.411 to 
 40.24  462.711, and acts amendatory thereof 469.001 to 469.047.  A 
 40.25  transfer of duties relating to housing shall not transfer any 
 40.26  duties relating to redevelopment. 
 40.27     Sec. 3.  [MUNICIPAL APPROVAL.] If any housing or 
 40.28  redevelopment project is undertaken in Scott county pursuant to 
 40.29  this authorization, and such project is within the boundaries of 
 40.30  any incorporated village, city or township, the location of such 
 40.31  project shall be approved by the governing body of such village, 
 40.32  city or township. 
 40.33     Sec. 4.  [ECONOMIC DEVELOPMENT AUTHORITY POWERS.] The Scott 
 40.34  county housing and redevelopment authority may exercise any of 
 40.35  the powers of an economic development authority (EDA) granted to 
 40.36  it by resolution by the Scott county board of commissioners, 
 41.1   except for the authority to levy the tax described in Minnesota 
 41.2   Statutes, section 469.107.  With the prior approval of the Scott 
 41.3   county board the authority may increase its levy of the special 
 41.4   tax described in Minnesota Statutes, section 469.033, 
 41.5   subdivision 6, to an amount not exceeding 0.01813 percent of 
 41.6   taxable market value, or any higher limit from time to time 
 41.7   authorized under Minnesota Statutes, section 469.107 or 469.033, 
 41.8   subdivision 6. 
 41.9      Sec. 5.  [OFFERS OF TAX-FORFEITED LANDS.] Scott county may 
 41.10  offer to the Scott county housing and redevelopment authority, 
 41.11  under the conditions and policies established by the county, and 
 41.12  subject to the approval of the city in which the property is 
 41.13  located, nonconservation tax-forfeited land prior to making the 
 41.14  properties available to cities in Scott county. 
 41.15     Sec. 4. Sec. 6.  [EFFECTIVE DATE; LOCAL APPROVAL.] This act 
 41.16  takes effect when approved by a majority of the board of county 
 41.17  commissioners of Scott county and upon compliance with Minnesota 
 41.18  Statutes, Section 645.021 This act is effective the day after 
 41.19  the governing body of Scott county and its chief clerical 
 41.20  officer timely complete their compliance with Minnesota 
 41.21  Statutes, section 645.021, subdivisions 2 and 3. 
 41.22     Sec. 45.  Laws 1980, chapter 482, is amended to read: 
 41.23     Section 1.  [CARVER COUNTY; HOUSING AND REDEVELOPMENT.] 
 41.24  Subdivision 1.  There is created in the county of Carver a 
 41.25  public body corporate and politic, to be known as the Carver 
 41.26  county housing and redevelopment authority, having all of the 
 41.27  powers and duties of a housing and redevelopment authority under 
 41.28  the provisions of the municipal housing and redevelopment act, 
 41.29  Minnesota Statutes, Section 462.411 to 462.711 sections 469.001 
 41.30  to 469.047, and having those powers of an economic development 
 41.31  authority under the provisions of Minnesota Statutes, sections 
 41.32  469.090 to 469.1082, as are granted to it by Carver county as 
 41.33  provided in sections 2 to 4.  For the purposes of applying the 
 41.34  provisions of the municipal housing and redevelopment 
 41.35  act Minnesota Statutes, sections 469.001 to 469.047 and 469.090 
 41.36  to 469.1082, to Carver county, the county has all of the powers 
 42.1   and duties of a municipality, the county board has all of the 
 42.2   powers and duties of a governing body, the chairman of the 
 42.3   county board has all of the powers and duties of a mayor, and 
 42.4   the area of operation includes the area within the territorial 
 42.5   boundaries of the county.  
 42.6      Subd. 2.  This section shall not limit or restrict any 
 42.7   existing housing and redevelopment authority or prevent a 
 42.8   municipality from creating an authority.  The county shall not 
 42.9   exercise jurisdiction in any municipality where a municipal 
 42.10  housing and redevelopment authority is established.  If a 
 42.11  municipal housing and redevelopment authority requests the 
 42.12  Carver county housing and redevelopment authority to handle the 
 42.13  housing duties of the municipal authority, the Carver county 
 42.14  housing and redevelopment authority shall act and have exclusive 
 42.15  jurisdiction for housing in the municipality.  A transfer of 
 42.16  duties relating to housing shall not transfer any duties 
 42.17  relating to redevelopment.  
 42.18     Sec. 2.  [ECONOMIC DEVELOPMENT AUTHORITY POWERS.] The 
 42.19  Carver county housing and redevelopment authority may exercise 
 42.20  any of the powers of an economic development authority granted 
 42.21  to it by resolution by the Carver county board of commissioners, 
 42.22  except for the authority to levy the tax described in Minnesota 
 42.23  Statutes, section 469.107.  With the prior approval of the 
 42.24  Carver county board, the authority may increase its levy of the 
 42.25  special tax described in Minnesota Statutes, section 469.033, 
 42.26  subdivision 6, to an amount not exceeding 0.01813 percent of 
 42.27  taxable market value, or any higher limit from time to time, 
 42.28  authorized under Minnesota Statutes, section 469.107 or 469.033, 
 42.29  subdivision 6. 
 42.30     Sec. 3.  [OFFERS OF TAX-FORFEITED LANDS.] Carver county may 
 42.31  offer to the Carver county housing and redevelopment authority, 
 42.32  under the conditions and policies established by the county, and 
 42.33  subject to the approval of the city in which the property is 
 42.34  located, nonconservation tax-forfeited land prior to making the 
 42.35  properties available to cities in Carver county. 
 42.36     Sec. 2.  Sec. 4.  [LOCAL APPROVAL.] Before a housing or 
 43.1   redevelopment project of the Carver county housing and 
 43.2   redevelopment authority is undertaken, the project shall be 
 43.3   approved by the local governing body with jurisdiction over all 
 43.4   or any part of the area in which the proposed project is located.
 43.5      Sec. 3.  Sec. 5.  [EFFECTIVE DATE; LOCAL APPROVAL.] This 
 43.6   act is effective upon takes effect the day of compliance after 
 43.7   the governing body of Carver county complies with Minnesota 
 43.8   Statutes, Section 645.021, Subdivision 3 subdivisions 2 and 3. 
 43.9      Sec. 46.  [GUTHRIE THEATER APPROPRIATION; CONDITIONS.] 
 43.10     The appropriation in Laws 2000, chapter 492, section 14, 
 43.11  subdivision 3, may be used to predesign and begin design of a 
 43.12  new Guthrie theater and is not required to be used to acquire 
 43.13  and prepare a site for the theater nor to construct, furnish, 
 43.14  and equip it. 
 43.15     Sec. 47.  [ST. PAUL BONDS FOR TECHNOLOGY INFRASTRUCTURE.] 
 43.16     The St. Paul city council may, by a two-thirds vote, issue 
 43.17  general obligation bonds, in one or more series, in an aggregate 
 43.18  principal amount outstanding not to exceed $50,000,000 with 
 43.19  maturity dates not to exceed ten years, to finance improvements 
 43.20  to the technology infrastructure, including software, of the 
 43.21  city. 
 43.22     The issuance of the bonds is subject to Minnesota Statutes, 
 43.23  chapter 475, except that no election is required to authorize 
 43.24  issuance of the bonds. 
 43.25     Sec. 48.  [REPEALER.] 
 43.26     Minnesota Statutes 2000, section 474A.061, subdivision 6, 
 43.27  is repealed. 
 43.28     Sec. 49.  [EFFECTIVE DATE.] 
 43.29     Sections 1 to 11 and 41 to 46 are effective the day 
 43.30  following final enactment.  Sections 12 to 40 and 48 are 
 43.31  effective the day after final enactment except that paragraph 
 43.32  (c) added by amendment in this act to section 474A.03, 
 43.33  subdivision 2a, is effective to require submissions by December 
 43.34  31, 2002, and annually thereafter.  Section 47 is effective the 
 43.35  day after the governing body of the city of St. Paul and its 
 43.36  chief clerical officer comply with Minnesota Statutes, section 
 44.1   645.021, subdivisions 2 and 3.