Bill Text: MN HF1686 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Public fund investments authorized, energy improvement repayment provided, and capital equipment financing and street reconstruction bond election requirements changed.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-04-04 - Introduction and first reading, referred to Taxes [HF1686 Detail]
Download: Minnesota-2013-HF1686-Introduced.html
1.2relating to public finance; authorizing certain investments of public funds;
1.3providing for repayment of certain energy improvements; changing certain
1.4requirements for financing capital equipment purchases; capital improvements;
1.5changing certain election requirements for issuance of street reconstruction
1.6bonds;amending Minnesota Statutes 2012, sections 118A.04, subdivision
1.73; 118A.05, subdivision 5; 216C.436, subdivision 7; 373.01, subdivision 3;
1.8373.40, subdivisions 1, 2; 410.32; 412.301; 473.606, subdivision 3; 475.521,
1.9subdivisions 1, 2; 475.58, subdivision 3b; repealing Minnesota Statutes 2012,
1.10section 428A.101.
1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.12 Section 1. Minnesota Statutes 2012, section 118A.04, subdivision 3, is amended to read:
1.13 Subd. 3. State and local securities. Funds may be invested in the following:
1.14(1) any security which is a general obligation of any state or local government with
1.15taxing powers which is rated "A" or better by a national bond rating service;
1.16(2) any security which is a revenue obligation of any state or local governmentwith
1.17taxing powers which is rated "AA" or better by a national bond rating service; and
1.18(3) a general obligation of the Minnesota housing finance agency which is a moral
1.19obligation of the state of Minnesota and is rated "A" or better by a national bond rating
1.20agency.; and
1.21(4) any security which is an obligation of a school district with an original maturity
1.22not exceeding 13 months and (i) rated in the highest category by a national bond rating
1.23service or (ii) enrolled in the credit enhancement program pursuant to section 126C.55.
1.24 Sec. 2. Minnesota Statutes 2012, section 118A.05, subdivision 5, is amended to read:
1.25 Subd. 5. Guaranteed investment contracts. Agreements or contracts for
1.26guaranteed investment contracts may be entered into if they are issued or guaranteed
2.1by United States commercial banks, domestic branches of foreign banks, United States
2.2insurance companies, or their Canadian subsidiaries, or the domestic affiliates of any
2.3of the foregoing. The credit quality of the issuer's or guarantor's short- and long-term
2.4unsecured debt must be rated in one of the two highest categories by a nationally
2.5recognized rating agency. Agreements or contracts for guaranteed investment contracts
2.6with a term of 18 months or less may be entered into regardless of the credit quality of
2.7the issuer's or guarantor's long-term unsecured debt, provided that the credit quality of
2.8the issuer's short-term unsecured debt is rated in the highest category by a nationally
2.9recognized rating agency. Should the issuer's or guarantor's credit quality be downgraded
2.10below "A", the government entity must have withdrawal rights.
2.11 Sec. 3. Minnesota Statutes 2012, section 216C.436, subdivision 7, is amended to read:
2.12 Subd. 7. Repayment. An implementing entity that finances an energy improvement
2.13under this section must:
2.14(1) secure payment with a lien against thebenefited qualifying real property; and
2.15(2) collect repayments as a special assessment as provided for in section429.101
2.16or by charter, provided that special assessments may be made payable in up to 20 equal
2.17annual installments.
2.18If the implementing entity is an authority, the local government that authorized
2.19the authority to act as implementing entity shall impose and collect special assessments
2.20necessary to pay debt service on bonds issued by the implementing entity under subdivision
2.218, and shall transfer all collections of the assessments upon receipt to the authority.
2.22 Sec. 4. Minnesota Statutes 2012, section 373.01, subdivision 3, is amended to read:
2.23 Subd. 3. Capital notes. (a) A county board may, by resolution and without
2.24referendum, issue capital notes subject to the county debt limit to purchase capital
2.25equipment useful for county purposes that has an expected useful life at least equal to the
2.26term of the notes. The notes shall be payable in not more than ten years and shall be
2.27issued on terms and in a manner the board determines. A tax levy shall be made for
2.28payment of the principal and interest on the notes, in accordance with section475.61 ,
2.29as in the case of bonds.
2.30 (b) For purposes of this subdivision, "capital equipment" means:
2.31 (1) public safety, ambulance, road construction or maintenance, and medical
2.32equipment;and
2.33 (2) computer hardware and software, without regard to its expected useful life,
2.34whether bundled with machinery or equipment or unbundled., together with application
3.1development services and training related to the use of the computer hardware or
3.2software; and
3.3 (3) fiber optic cable, or other means of voice or data transmission, among
3.4governmental facilities.
3.5 Sec. 5. Minnesota Statutes 2012, section 373.40, subdivision 1, is amended to read:
3.6 Subdivision 1. Definitions. For purposes of this section, the following terms have
3.7the meanings given.
3.8(a) "Bonds" means an obligation as defined under section475.51 .
3.9(b) "Capital improvement" means acquisition or betterment of public lands,
3.10buildings, or other improvements within the county for the purpose of a county courthouse,
3.11administrative building, health or social service facility, correctional facility, jail, law
3.12enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads
3.13and bridges, public works facilities, fairground buildings, and records and data storage
3.14facilities, and the acquisition of development rights in the form of conservation easements
3.15under chapter 84C. An improvement must have an expected useful life of five years or more
3.16to qualify. "Capital improvement" does not include a recreation or sports facility building
3.17(such as, but not limited to, a gymnasium, ice arena, racquet sports facility, swimming
3.18pool, exercise room or health spa), unless the building is part of an outdoor park facility
3.19and is incidental to the primary purpose of outdoor recreation. For purposes of this section,
3.20"capital improvement" includes expenditures for purposes described in this paragraph that
3.21have been incurred by a county before approval of a capital improvement plan, if such
3.22expenditures are included in a capital improvement plan approved on or before the date of
3.23the public hearing under subdivision 2 regarding issuance of bonds for such expenditures.
3.24(c) "Metropolitan county" means a county located in the seven-county metropolitan
3.25area as defined in section473.121 or a county with a population of 90,000 or more.
3.26(d) "Population" means the population established by the most recent of the
3.27following (determined as of the date the resolution authorizing the bonds was adopted):
3.28(1) the federal decennial census,
3.29(2) a special census conducted under contract by the United States Bureau of the
3.30Census, or
3.31(3) a population estimate made either by the Metropolitan Council or by the state
3.32demographer under section4A.02 .
3.33(e) "Qualified indoor ice arena" means a facility that meets the requirements of
3.34section373.43 .
4.1(f) "Tax capacity" means total taxable market value, but does not include captured
4.2market value.
4.3 Sec. 6. Minnesota Statutes 2012, section 373.40, subdivision 2, is amended to read:
4.4 Subd. 2. Application of election requirement. (a) Bonds issued by a county
4.5to finance capital improvements under an approved capital improvement plan are not
4.6subject to the election requirements of section375.18 or
475.58 . The bonds must be
4.7approved by vote of at least three-fifths of the members of the county board. In the case
4.8of a metropolitan county, the bonds must be approved by vote of at least two-thirds of
4.9the members of the county board.
4.10(b) Before issuance of bonds qualifying under this section, the county must publish
4.11a notice of its intention to issue the bonds and the date and time of a hearing to obtain
4.12public comment on the matter. The notice must be published in the official newspaper
4.13of the county or in a newspaper of general circulation in the county. The notice must be
4.14published at least 14, but not more than 28, days before the date of the hearing.
4.15(c) A county may issue the bonds only upon obtaining the approval of a majority of
4.16the voters voting on the question of issuing the obligations, if a petition requesting a vote
4.17on the issuance is signed by voters equal to five percent of the votes cast in the county in
4.18the last county general election and is filed with the county auditor within 30 days after
4.19the public hearing.The commissioner of revenue shall prepare a suggested form of the
4.20question to be presented at the election. If the county elects not to submit the question to
4.21the voters, the county shall not propose the issuance of bonds under this section for the
4.22same purpose and in the same amount for a period of 365 days from the date of receipt
4.23of the petition. If the question of issuing the bonds is submitted and not approved by the
4.24voters, the provisions of section 475.58, subdivision 1a, shall apply.
4.25 Sec. 7. Minnesota Statutes 2012, section 410.32, is amended to read:
4.26410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
4.27 (a) Notwithstanding any contrary provision of other law or charter, a home rule
4.28charter city may, by resolution and without public referendum, issue capital notes subject
4.29to the city debt limit to purchase capital equipment.
4.30 (b) For purposes of this section, "capital equipment" means:
4.31 (1) public safety equipment, ambulance and other medical equipment, road
4.32construction and maintenance equipment, and other capital equipment;and
4.33 (2) computer hardware and software, without regard to its expected useful life,
4.34 whether bundled with machinery or equipment or unbundled., together with application
5.1development services and training related to the use of the computer hardware and
5.2software; and
5.3 (3) fiber optic cable, or other means of voice or data transmission, among
5.4governmental facilities.
5.5 (c) The equipment or software must have an expected useful life at least as long
5.6as the term of the notes.
5.7 (d) The notes shall be payable in not more than ten years and be issued on terms and
5.8in the manner the city determines. The total principal amount of the capital notes issued
5.9in a fiscal year shall not exceed 0.03 percent of the market value of taxable property
5.10in the city for that year.
5.11 (e) A tax levy shall be made for the payment of the principal and interest on the
5.12notes, in accordance with section475.61 , as in the case of bonds.
5.13 (f) Notes issued under this section shall require an affirmative vote of two-thirds of
5.14the governing body of the city.
5.15 (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
5.16city may also issue capital notes subject to its debt limit in the manner and subject to the
5.17limitations applicable to statutory cities pursuant to section412.301 .
5.18 Sec. 8. Minnesota Statutes 2012, section 412.301, is amended to read:
5.19412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
5.20 (a) The council may issue certificates of indebtedness or capital notes subject to the
5.21city debt limits to purchase capital equipment.
5.22 (b) For purposes of this section, "capital equipment" means:
5.23 (1) public safety equipment, ambulance and other medical equipment, road
5.24construction and maintenance equipment, and other capital equipment;and
5.25 (2) computer hardware and software, without regard to its expected useful life,
5.26 whether bundled with machinery or equipment or unbundled., together with application
5.27development services and training related to the use of the computer hardware or
5.28software; and
5.29 (3) fiber optic cable, or other means of voice or data transmission, among
5.30governmental facilities.
5.31 (c) The equipment or software must have an expected useful life at least as long as
5.32the terms of the certificates or notes.
5.33 (d) Such certificates or notes shall be payable in not more than ten years and shall be
5.34issued on such terms and in such manner as the council may determine.
6.1 (e) If the amount of the certificates or notes to be issued to finance any such purchase
6.2exceeds 0.25 percent of the market value of taxable property in the city, they shall not
6.3be issued for at least ten days after publication in the official newspaper of a council
6.4resolution determining to issue them; and if before the end of that time, a petition asking
6.5for an election on the proposition signed by voters equal to ten percent of the number of
6.6voters at the last regular municipal election is filed with the clerk, such certificates or notes
6.7shall not be issued until the proposition of their issuance has been approved by a majority
6.8of the votes cast on the question at a regular or special election.
6.9 (f) A tax levy shall be made for the payment of the principal and interest on such
6.10certificates or notes, in accordance with section475.61 , as in the case of bonds.
6.11 Sec. 9. Minnesota Statutes 2012, section 473.606, subdivision 3, is amended to read:
6.12 Subd. 3. Treasurer; investments. The treasurer shall receive and be responsible
6.13for all moneys of the corporation, from whatever source derived, and the same shall be
6.14considered public funds. The treasurer shall disburse the moneys of the corporation only
6.15on orders made by the executive and operating officer, herein provided for, countersigned
6.16by such other officer or such employee of the corporation as may be authorized and
6.17directed so to do by the corporation, showing the name of the claimant and the nature of
6.18the claim. No disbursement shall be certified by such officers until the same have been
6.19approved by said commissioners at a meeting thereof. Whenever the executive director of
6.20the corporation shall certify, pursuant to action taken by the commissioners at a meeting
6.21thereof, that there are moneys and the amount thereof in the possession of the treasurer not
6.22currently needed, then the treasurer may invest said amount or any part thereof in:
6.23(a) Treasury bonds, certificates of indebtedness, bonds or notes of the United States
6.24of America, or bonds, notes or certificates of indebtedness of the state of Minnesota, all of
6.25which must mature not later than three years from the date of purchase.
6.26(b) Bonds, notes, debentures or other obligations issued by any agency or
6.27instrumentality of the United States or any securities guaranteed by the United States
6.28government, or for which the credit of the United States is pledged for the payment of
6.29the principal and interest thereof, all of which must mature not later than three years
6.30from date of purchase.
6.31(c) Commercial paper of prime quality, or rated among the top third of the quality
6.32categories, not applicable to defaulted paper, as defined by a nationally recognized
6.33organization which rates such securities as eligible for investment in the state employees
6.34retirement fund except that any nonbanking issuing corporation, or parent company in the
6.35case of paper issued by operating utility or finance subsidiaries, must have total assets
7.1exceeding $500,000,000. Such commercial paper may constitute no more than 30 percent
7.2of the book value of the fund at the time of purchase, and the commercial paper of any
7.3one corporation shall not constitute more than four percent of the book value of the fund
7.4at the time of such investment.
7.5(d) Any securities eligible under the preceding provisions, purchased with
7.6simultaneous repurchase agreement under which the securities will be sold to the particular
7.7dealer on a specified date at a predetermined price. In such instances, all maturities of
7.8United States government securities, or securities issued or guaranteed by the United
7.9States government or an agency thereof, may be purchased so long as any such securities
7.10which mature later than three years from the date of purchase have a current market
7.11value exceeding the purchase price by at least five percent on the date of purchase, and
7.12so long as such repurchase agreement involving securities extending beyond three years
7.13in maturity be limited to a period not exceeding 45 days.
7.14(e) Certificates of deposit issued by any official depository of the commission. The
7.15commission may purchase certificates of deposit from a depository bank in an amount
7.16exceeding that insured by federal depository insurance to the extent that those certificates
7.17are secured by collateral maintained by the bank in a manner as prescribed for investments
7.18of the State Board of Investment.
7.19(f) securities approved for investment under section 118A.04.
7.20Whenever it shall appear to the commissioners that any invested funds are needed
7.21for current purposes before the maturity dates of the securities held, they shall cause the
7.22executive director to so certify to the treasurer and it shall then be the duty of the treasurer
7.23to order the sale or conversion into cash of the securities in the amount so certified. All
7.24interest and profit on said investments shall be credited to and constitute a part of the
7.25funds of the commission. The treasurer shall keep an account of all moneys received
7.26and disbursed, and at least once a year, at times to be designated by the corporation, file
7.27with the secretary a financial statement of the corporation, showing in appropriate and
7.28identifiable groupings the receipts and disbursements since the last approved statements;
7.29moneys on hand and the purposes for which the same are appropriated; and shall keep an
7.30account of all securities purchased as herein provided, the funds from which purchased
7.31and the interest and profit which may have accrued thereon, and shall accompany the
7.32financial statement aforesaid with a statement setting forth such account. The corporation
7.33may pay to the treasurer from time to time compensation in such amount as it may
7.34determine to cover clerk hire to enable the treasurer to carry out duties and those required
7.35in connection with bonds issued by the corporation as in this act authorized.
8.1 Sec. 10. Minnesota Statutes 2012, section 475.521, subdivision 1, is amended to read:
8.2 Subdivision 1. Definitions. For purposes of this section, the following terms have
8.3the meanings given.
8.4(a) "Bonds" mean an obligation defined under section475.51 .
8.5(b) "Capital improvement" means acquisition or betterment of public lands,
8.6buildings or other improvements for the purpose of a city hall, town hall, library, public
8.7safety facility, and public works facility. An improvement must have an expected useful
8.8life of five years or more to qualify. Capital improvement does not include light rail transit
8.9or any activity related to it, or a park, road, bridge, administrative building other than a
8.10city or town hall, or land for any of those facilities. For purposes of this section, "capital
8.11improvement" includes expenditures for purposes described in this paragraph that have
8.12been incurred by a municipality before approval of a capital improvement plan, if such
8.13expenditures are included in a capital improvement plan approved on or before the date of
8.14the public hearing under subdivision 2 regarding issuance of bonds for such expenditures.
8.15(c) "Municipality" means a home rule charter or statutory city or a town described in
8.16section368.01, subdivision 1 or 1a.
8.17 Sec. 11. Minnesota Statutes 2012, section 475.521, subdivision 2, is amended to read:
8.18 Subd. 2. Election requirement. (a) Bonds issued by a municipality to finance
8.19capital improvements under an approved capital improvements plan are not subject to the
8.20election requirements of section475.58 . The bonds must be approved by an affirmative
8.21vote of three-fifths of the members of a five-member governing body. In the case of a
8.22governing body having more or less than five members, the bonds must be approved by a
8.23vote of at least two-thirds of the members of the governing body.
8.24(b) Before the issuance of bonds qualifying under this section, the municipality
8.25must publish a notice of its intention to issue the bonds and the date and time of the
8.26hearing to obtain public comment on the matter. The notice must be published in the
8.27official newspaper of the municipality or in a newspaper of general circulation in the
8.28municipality. Additionally, the notice may be posted on the official Web site, if any, of the
8.29municipality. The notice must be published at least 14 but not more than 28 days before
8.30the date of the hearing.
8.31(c) A municipality may issue the bonds only after obtaining the approval of a
8.32majority of the voters voting on the question of issuing the obligations, if a petition
8.33requesting a vote on the issuance is signed by voters equal to five percent of the votes cast
8.34in the municipality in the last municipal general election and is filed with the clerk within
8.3530 days after the public hearing.The commissioner of revenue shall prepare a suggested
9.1form of the question to be presented at the election. If the municipality elects not to submit
9.2the question to the voters, the municipality shall not propose the issuance of bonds under
9.3this section for the same purpose and in the same amount for a period of 365 days from the
9.4date of receipt of the petition. If the question of issuing the bonds is submitted and not
9.5approved by the voters, the provisions of section 475.58, subdivision 1a, shall apply.
9.6 Sec. 12. Minnesota Statutes 2012, section 475.58, subdivision 3b, is amended to read:
9.7 Subd. 3b. Street reconstruction. (a) A municipality may, without regard to
9.8the election requirement under subdivision 1, issue and sell obligations for street
9.9reconstruction, if the following conditions are met:
9.10 (1) the streets are reconstructed under a street reconstruction plan that describes the
9.11street reconstruction to be financed, the estimated costs, and any planned reconstruction
9.12of other streets in the municipality over the next five years, and the plan and issuance of
9.13the obligations has been approved by a vote of all of the members of the governing body
9.14present at the meeting following a public hearing for which notice has been published in
9.15the official newspaper at least ten days but not more than 28 days prior to the hearing; and
9.16 (2) if a petition requesting a vote on the issuance is signed by voters equal to
9.17five percent of the votes cast in the last municipal general election and is filed with the
9.18municipal clerk within 30 days of the public hearing, the municipality may issue the bonds
9.19only after obtaining the approval of a majority of the voters voting on the question of the
9.20issuance of the obligations. If the municipality elects not to submit the question to the
9.21voters, the municipality shall not propose the issuance of bonds under this section for the
9.22same purpose and in the same amount for a period of 365 days from the date of receipt
9.23of the petition. If the question of issuing the bonds is submitted and not approved by the
9.24voters, the provisions of section 475.58, subdivision 1a, shall apply.
9.25 (b) Obligations issued under this subdivision are subject to the debt limit of the
9.26municipality and are not excluded from net debt under section475.51, subdivision 4 .
9.27 (c) For purposes of this subdivision, street reconstruction includes utility
9.28replacement and relocation and other activities incidental to the street reconstruction, turn
9.29lanes and other improvements having a substantial public safety function, realignments,
9.30other modifications to intersect with state and county roads, and the local share of state and
9.31county road projects. For purposes of this subdivision, "street reconstruction" includes
9.32expenditures for street reconstruction that have been incurred by a municipality before
9.33approval of a street reconstruction plan, if such expenditures are included in a street
9.34reconstruction plan approved on or before the date of the public hearing under paragraph
9.35(a), clause (1) regarding issuance of bonds for such expenditures.
10.1 (d) Except in the case of turn lanes, safety improvements, realignments, intersection
10.2modifications, and the local share of state and county road projects, street reconstruction
10.3does not include the portion of project cost allocable to widening a street or adding curbs
10.4and gutters where none previously existed.
10.5 Sec. 13. REPEALER.
10.6Minnesota Statutes 2012, section 428A.101, is repealed.
1.3providing for repayment of certain energy improvements; changing certain
1.4requirements for financing capital equipment purchases; capital improvements;
1.5changing certain election requirements for issuance of street reconstruction
1.6bonds;amending Minnesota Statutes 2012, sections 118A.04, subdivision
1.73; 118A.05, subdivision 5; 216C.436, subdivision 7; 373.01, subdivision 3;
1.8373.40, subdivisions 1, 2; 410.32; 412.301; 473.606, subdivision 3; 475.521,
1.9subdivisions 1, 2; 475.58, subdivision 3b; repealing Minnesota Statutes 2012,
1.10section 428A.101.
1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.12 Section 1. Minnesota Statutes 2012, section 118A.04, subdivision 3, is amended to read:
1.13 Subd. 3. State and local securities. Funds may be invested in the following:
1.14(1) any security which is a general obligation of any state or local government with
1.15taxing powers which is rated "A" or better by a national bond rating service;
1.16(2) any security which is a revenue obligation of any state or local government
1.17
1.18(3) a general obligation of the Minnesota housing finance agency which is a moral
1.19obligation of the state of Minnesota and is rated "A" or better by a national bond rating
1.20agency
1.21(4) any security which is an obligation of a school district with an original maturity
1.22not exceeding 13 months and (i) rated in the highest category by a national bond rating
1.23service or (ii) enrolled in the credit enhancement program pursuant to section 126C.55.
1.24 Sec. 2. Minnesota Statutes 2012, section 118A.05, subdivision 5, is amended to read:
1.25 Subd. 5. Guaranteed investment contracts. Agreements or contracts for
1.26guaranteed investment contracts may be entered into if they are issued or guaranteed
2.1by United States commercial banks, domestic branches of foreign banks, United States
2.2insurance companies, or their Canadian subsidiaries, or the domestic affiliates of any
2.3of the foregoing. The credit quality of the issuer's or guarantor's short- and long-term
2.4unsecured debt must be rated in one of the two highest categories by a nationally
2.5recognized rating agency. Agreements or contracts for guaranteed investment contracts
2.6with a term of 18 months or less may be entered into regardless of the credit quality of
2.7the issuer's or guarantor's long-term unsecured debt, provided that the credit quality of
2.8the issuer's short-term unsecured debt is rated in the highest category by a nationally
2.9recognized rating agency. Should the issuer's or guarantor's credit quality be downgraded
2.10below "A", the government entity must have withdrawal rights.
2.11 Sec. 3. Minnesota Statutes 2012, section 216C.436, subdivision 7, is amended to read:
2.12 Subd. 7. Repayment. An implementing entity that finances an energy improvement
2.13under this section must:
2.14(1) secure payment with a lien against the
2.15(2) collect repayments as a special assessment as provided for in section
2.17annual installments.
2.18If the implementing entity is an authority, the local government that authorized
2.19the authority to act as implementing entity shall impose and collect special assessments
2.20necessary to pay debt service on bonds issued by the implementing entity under subdivision
2.218, and shall transfer all collections of the assessments upon receipt to the authority.
2.22 Sec. 4. Minnesota Statutes 2012, section 373.01, subdivision 3, is amended to read:
2.23 Subd. 3. Capital notes. (a) A county board may, by resolution and without
2.24referendum, issue capital notes subject to the county debt limit to purchase capital
2.25equipment useful for county purposes that has an expected useful life at least equal to the
2.26term of the notes. The notes shall be payable in not more than ten years and shall be
2.27issued on terms and in a manner the board determines. A tax levy shall be made for
2.28payment of the principal and interest on the notes, in accordance with section
2.29as in the case of bonds.
2.30 (b) For purposes of this subdivision, "capital equipment" means:
2.31 (1) public safety, ambulance, road construction or maintenance, and medical
2.32equipment;
2.33 (2) computer hardware and software, without regard to its expected useful life,
2.34whether bundled with machinery or equipment or unbundled
3.1development services and training related to the use of the computer hardware or
3.2software; and
3.3 (3) fiber optic cable, or other means of voice or data transmission, among
3.4governmental facilities.
3.5 Sec. 5. Minnesota Statutes 2012, section 373.40, subdivision 1, is amended to read:
3.6 Subdivision 1. Definitions. For purposes of this section, the following terms have
3.7the meanings given.
3.8(a) "Bonds" means an obligation as defined under section
3.9(b) "Capital improvement" means acquisition or betterment of public lands,
3.10buildings, or other improvements within the county for the purpose of a county courthouse,
3.11administrative building, health or social service facility, correctional facility, jail, law
3.12enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads
3.13and bridges, public works facilities, fairground buildings, and records and data storage
3.14facilities, and the acquisition of development rights in the form of conservation easements
3.15under chapter 84C. An improvement must have an expected useful life of five years or more
3.16to qualify. "Capital improvement" does not include a recreation or sports facility building
3.17(such as, but not limited to, a gymnasium, ice arena, racquet sports facility, swimming
3.18pool, exercise room or health spa), unless the building is part of an outdoor park facility
3.19and is incidental to the primary purpose of outdoor recreation. For purposes of this section,
3.20"capital improvement" includes expenditures for purposes described in this paragraph that
3.21have been incurred by a county before approval of a capital improvement plan, if such
3.22expenditures are included in a capital improvement plan approved on or before the date of
3.23the public hearing under subdivision 2 regarding issuance of bonds for such expenditures.
3.24(c) "Metropolitan county" means a county located in the seven-county metropolitan
3.25area as defined in section
3.26(d) "Population" means the population established by the most recent of the
3.27following (determined as of the date the resolution authorizing the bonds was adopted):
3.28(1) the federal decennial census,
3.29(2) a special census conducted under contract by the United States Bureau of the
3.30Census, or
3.31(3) a population estimate made either by the Metropolitan Council or by the state
3.32demographer under section
3.33(e) "Qualified indoor ice arena" means a facility that meets the requirements of
3.34section
4.1(f) "Tax capacity" means total taxable market value, but does not include captured
4.2market value.
4.3 Sec. 6. Minnesota Statutes 2012, section 373.40, subdivision 2, is amended to read:
4.4 Subd. 2. Application of election requirement. (a) Bonds issued by a county
4.5to finance capital improvements under an approved capital improvement plan are not
4.6subject to the election requirements of section
4.7approved by vote of at least three-fifths of the members of the county board. In the case
4.8of a metropolitan county, the bonds must be approved by vote of at least two-thirds of
4.9the members of the county board.
4.10(b) Before issuance of bonds qualifying under this section, the county must publish
4.11a notice of its intention to issue the bonds and the date and time of a hearing to obtain
4.12public comment on the matter. The notice must be published in the official newspaper
4.13of the county or in a newspaper of general circulation in the county. The notice must be
4.14published at least 14, but not more than 28, days before the date of the hearing.
4.15(c) A county may issue the bonds only upon obtaining the approval of a majority of
4.16the voters voting on the question of issuing the obligations, if a petition requesting a vote
4.17on the issuance is signed by voters equal to five percent of the votes cast in the county in
4.18the last county general election and is filed with the county auditor within 30 days after
4.19the public hearing.
4.20
4.21the voters, the county shall not propose the issuance of bonds under this section for the
4.22same purpose and in the same amount for a period of 365 days from the date of receipt
4.23of the petition. If the question of issuing the bonds is submitted and not approved by the
4.24voters, the provisions of section 475.58, subdivision 1a, shall apply.
4.25 Sec. 7. Minnesota Statutes 2012, section 410.32, is amended to read:
4.26410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
4.27 (a) Notwithstanding any contrary provision of other law or charter, a home rule
4.28charter city may, by resolution and without public referendum, issue capital notes subject
4.29to the city debt limit to purchase capital equipment.
4.30 (b) For purposes of this section, "capital equipment" means:
4.31 (1) public safety equipment, ambulance and other medical equipment, road
4.32construction and maintenance equipment, and other capital equipment;
4.33 (2) computer hardware and software, without regard to its expected useful life,
4.34 whether bundled with machinery or equipment or unbundled
5.1development services and training related to the use of the computer hardware and
5.2software; and
5.3 (3) fiber optic cable, or other means of voice or data transmission, among
5.4governmental facilities.
5.5 (c) The equipment or software must have an expected useful life at least as long
5.6as the term of the notes.
5.7 (d) The notes shall be payable in not more than ten years and be issued on terms and
5.8in the manner the city determines. The total principal amount of the capital notes issued
5.9in a fiscal year shall not exceed 0.03 percent of the market value of taxable property
5.10in the city for that year.
5.11 (e) A tax levy shall be made for the payment of the principal and interest on the
5.12notes, in accordance with section
5.13 (f) Notes issued under this section shall require an affirmative vote of two-thirds of
5.14the governing body of the city.
5.15 (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
5.16city may also issue capital notes subject to its debt limit in the manner and subject to the
5.17limitations applicable to statutory cities pursuant to section
5.18 Sec. 8. Minnesota Statutes 2012, section 412.301, is amended to read:
5.19412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
5.20 (a) The council may issue certificates of indebtedness or capital notes subject to the
5.21city debt limits to purchase capital equipment.
5.22 (b) For purposes of this section, "capital equipment" means:
5.23 (1) public safety equipment, ambulance and other medical equipment, road
5.24construction and maintenance equipment, and other capital equipment;
5.25 (2) computer hardware and software, without regard to its expected useful life,
5.26 whether bundled with machinery or equipment or unbundled
5.27development services and training related to the use of the computer hardware or
5.28software; and
5.29 (3) fiber optic cable, or other means of voice or data transmission, among
5.30governmental facilities.
5.31 (c) The equipment or software must have an expected useful life at least as long as
5.32the terms of the certificates or notes.
5.33 (d) Such certificates or notes shall be payable in not more than ten years and shall be
5.34issued on such terms and in such manner as the council may determine.
6.1 (e) If the amount of the certificates or notes to be issued to finance any such purchase
6.2exceeds 0.25 percent of the market value of taxable property in the city, they shall not
6.3be issued for at least ten days after publication in the official newspaper of a council
6.4resolution determining to issue them; and if before the end of that time, a petition asking
6.5for an election on the proposition signed by voters equal to ten percent of the number of
6.6voters at the last regular municipal election is filed with the clerk, such certificates or notes
6.7shall not be issued until the proposition of their issuance has been approved by a majority
6.8of the votes cast on the question at a regular or special election.
6.9 (f) A tax levy shall be made for the payment of the principal and interest on such
6.10certificates or notes, in accordance with section
6.11 Sec. 9. Minnesota Statutes 2012, section 473.606, subdivision 3, is amended to read:
6.12 Subd. 3. Treasurer; investments. The treasurer shall receive and be responsible
6.13for all moneys of the corporation, from whatever source derived, and the same shall be
6.14considered public funds. The treasurer shall disburse the moneys of the corporation only
6.15on orders made by the executive and operating officer, herein provided for, countersigned
6.16by such other officer or such employee of the corporation as may be authorized and
6.17directed so to do by the corporation, showing the name of the claimant and the nature of
6.18the claim. No disbursement shall be certified by such officers until the same have been
6.19approved by said commissioners at a meeting thereof. Whenever the executive director of
6.20the corporation shall certify, pursuant to action taken by the commissioners at a meeting
6.21thereof, that there are moneys and the amount thereof in the possession of the treasurer not
6.22currently needed, then the treasurer may invest said amount or any part thereof in
6.23
6.24
6.25
6.26
6.27
6.28
6.29
6.30
6.31
6.32
6.33
6.34
6.35
7.1
7.2
7.3
7.4
7.5
7.6
7.7
7.8
7.9
7.10
7.11
7.12
7.13
7.14
7.15
7.16
7.17
7.18
7.19
7.20Whenever it shall appear to the commissioners that any invested funds are needed
7.21for current purposes before the maturity dates of the securities held, they shall cause the
7.22executive director to so certify to the treasurer and it shall then be the duty of the treasurer
7.23to order the sale or conversion into cash of the securities in the amount so certified. All
7.24interest and profit on said investments shall be credited to and constitute a part of the
7.25funds of the commission. The treasurer shall keep an account of all moneys received
7.26and disbursed, and at least once a year, at times to be designated by the corporation, file
7.27with the secretary a financial statement of the corporation, showing in appropriate and
7.28identifiable groupings the receipts and disbursements since the last approved statements;
7.29moneys on hand and the purposes for which the same are appropriated; and shall keep an
7.30account of all securities purchased as herein provided, the funds from which purchased
7.31and the interest and profit which may have accrued thereon, and shall accompany the
7.32financial statement aforesaid with a statement setting forth such account. The corporation
7.33may pay to the treasurer from time to time compensation in such amount as it may
7.34determine to cover clerk hire to enable the treasurer to carry out duties and those required
7.35in connection with bonds issued by the corporation as in this act authorized.
8.1 Sec. 10. Minnesota Statutes 2012, section 475.521, subdivision 1, is amended to read:
8.2 Subdivision 1. Definitions. For purposes of this section, the following terms have
8.3the meanings given.
8.4(a) "Bonds" mean an obligation defined under section
8.5(b) "Capital improvement" means acquisition or betterment of public lands,
8.6buildings or other improvements for the purpose of a city hall, town hall, library, public
8.7safety facility, and public works facility. An improvement must have an expected useful
8.8life of five years or more to qualify. Capital improvement does not include light rail transit
8.9or any activity related to it, or a park, road, bridge, administrative building other than a
8.10city or town hall, or land for any of those facilities. For purposes of this section, "capital
8.11improvement" includes expenditures for purposes described in this paragraph that have
8.12been incurred by a municipality before approval of a capital improvement plan, if such
8.13expenditures are included in a capital improvement plan approved on or before the date of
8.14the public hearing under subdivision 2 regarding issuance of bonds for such expenditures.
8.15(c) "Municipality" means a home rule charter or statutory city or a town described in
8.16section
8.17 Sec. 11. Minnesota Statutes 2012, section 475.521, subdivision 2, is amended to read:
8.18 Subd. 2. Election requirement. (a) Bonds issued by a municipality to finance
8.19capital improvements under an approved capital improvements plan are not subject to the
8.20election requirements of section
8.21vote of three-fifths of the members of a five-member governing body. In the case of a
8.22governing body having more or less than five members, the bonds must be approved by a
8.23vote of at least two-thirds of the members of the governing body.
8.24(b) Before the issuance of bonds qualifying under this section, the municipality
8.25must publish a notice of its intention to issue the bonds and the date and time of the
8.26hearing to obtain public comment on the matter. The notice must be published in the
8.27official newspaper of the municipality or in a newspaper of general circulation in the
8.28municipality. Additionally, the notice may be posted on the official Web site, if any, of the
8.29municipality. The notice must be published at least 14 but not more than 28 days before
8.30the date of the hearing.
8.31(c) A municipality may issue the bonds only after obtaining the approval of a
8.32majority of the voters voting on the question of issuing the obligations, if a petition
8.33requesting a vote on the issuance is signed by voters equal to five percent of the votes cast
8.34in the municipality in the last municipal general election and is filed with the clerk within
8.3530 days after the public hearing.
9.1
9.2the question to the voters, the municipality shall not propose the issuance of bonds under
9.3this section for the same purpose and in the same amount for a period of 365 days from the
9.4date of receipt of the petition. If the question of issuing the bonds is submitted and not
9.5approved by the voters, the provisions of section 475.58, subdivision 1a, shall apply.
9.6 Sec. 12. Minnesota Statutes 2012, section 475.58, subdivision 3b, is amended to read:
9.7 Subd. 3b. Street reconstruction. (a) A municipality may, without regard to
9.8the election requirement under subdivision 1, issue and sell obligations for street
9.9reconstruction, if the following conditions are met:
9.10 (1) the streets are reconstructed under a street reconstruction plan that describes the
9.11street reconstruction to be financed, the estimated costs, and any planned reconstruction
9.12of other streets in the municipality over the next five years, and the plan and issuance of
9.13the obligations has been approved by a vote of all of the members of the governing body
9.14present at the meeting following a public hearing for which notice has been published in
9.15the official newspaper at least ten days but not more than 28 days prior to the hearing; and
9.16 (2) if a petition requesting a vote on the issuance is signed by voters equal to
9.17five percent of the votes cast in the last municipal general election and is filed with the
9.18municipal clerk within 30 days of the public hearing, the municipality may issue the bonds
9.19only after obtaining the approval of a majority of the voters voting on the question of the
9.20issuance of the obligations. If the municipality elects not to submit the question to the
9.21voters, the municipality shall not propose the issuance of bonds under this section for the
9.22same purpose and in the same amount for a period of 365 days from the date of receipt
9.23of the petition. If the question of issuing the bonds is submitted and not approved by the
9.24voters, the provisions of section 475.58, subdivision 1a, shall apply.
9.25 (b) Obligations issued under this subdivision are subject to the debt limit of the
9.26municipality and are not excluded from net debt under section
9.27 (c) For purposes of this subdivision, street reconstruction includes utility
9.28replacement and relocation and other activities incidental to the street reconstruction, turn
9.29lanes and other improvements having a substantial public safety function, realignments,
9.30other modifications to intersect with state and county roads, and the local share of state and
9.31county road projects. For purposes of this subdivision, "street reconstruction" includes
9.32expenditures for street reconstruction that have been incurred by a municipality before
9.33approval of a street reconstruction plan, if such expenditures are included in a street
9.34reconstruction plan approved on or before the date of the public hearing under paragraph
9.35(a), clause (1) regarding issuance of bonds for such expenditures.
10.1 (d) Except in the case of turn lanes, safety improvements, realignments, intersection
10.2modifications, and the local share of state and county road projects, street reconstruction
10.3does not include the portion of project cost allocable to widening a street or adding curbs
10.4and gutters where none previously existed.
10.5 Sec. 13. REPEALER.
10.6Minnesota Statutes 2012, section 428A.101, is repealed.
