1.1.................... moves to amend H.F. No. 1298 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. [16A.647] TAX CREDIT AND INTEREST SUBSIDY BONDS.
1.4    Subdivision 1. Authority to issue. When authorized by law to issue state general
1.5obligation bonds, the commissioner may issue all or part of the bonds as tax credit bonds
1.6or as interest subsidy bonds or a combination of the two.
1.7    Subd. 2. Definitions. (a) For purposes of this section, the following terms have
1.8the meanings given them.
1.9(b) "Tax credit bonds" means bonds, the interest on which is includable in the
1.10income of the owner of the bonds for federal income tax purposes, but for which the
1.11owner is entitled to a federal tax credit.
1.12(c) "Interest subsidy bonds" means bonds, the interest on which is includable in the
1.13income of the owner of the bonds for federal income tax purposes, but for which the
1.14issuer is entitled to federal interest subsidy payments based on a percentage of the interest
1.15payable on the interest subsidy bonds.
1.16    Subd. 3. Method of sale. Notwithstanding the provisions of section 16A.641,
1.17subdivision 4, the commissioner may sell any series of tax credit bonds or interest
1.18subsidy bonds at negotiated sale upon the terms and conditions and the restrictions
1.19the commissioner prescribes. The commissioner may contract for investment banking
1.20and banking services only after receiving competitive proposals for the services. The
1.21commissioner may enter into all contracts deemed necessary or desirable to accomplish
1.22the sale in a cost-effective manner.
1.23    Subd. 4. Sinking fund. The commissioner's order authorizing the issuance of
1.24interest subsidy bonds must establish a separate sinking fund account for the interest
1.25subsidy bonds in the state bond fund. There is annually appropriated, as received, to each
1.26interest subsidy bond account, in addition to amounts appropriated under section 16A.641,
2.1the interest subsidy payments received from the federal government with respect to that
2.2issue of interest subsidy bonds in that year.
2.3    Subd. 5. Sale. Tax credit bonds and interest subsidy bonds must be sold at a price
2.4not less than 98 percent of their stated principal amount. No state trunk highway bond
2.5may be sold for a price of less than par and accrued interest.

2.6    Sec. 2. Minnesota Statutes 2008, section 37.31, subdivision 1, is amended to read:
2.7    Subdivision 1. Bonding authority. The society may issue negotiable bonds in
2.8a principal amount that the society determines necessary to provide sufficient money
2.9for achieving its purposes, including the payment of interest on bonds of the society,
2.10the establishment of reserves to secure its bonds, the payment of fees to a third party
2.11providing credit enhancement, and the payment of all other expenditures of the society
2.12incident to and necessary or convenient to carry out its corporate purposes and powers.
2.13Bonds of the society may be issued as bonds or notes or in any other form authorized by
2.14law. The principal amount of bonds issued and outstanding under this section at any time
2.15may not exceed $20,000,000, excluding bonds for which refunding bonds or crossover
2.16refunding bonds have been issued.
2.17EFFECTIVE DATE.This section is effective the day following final enactment.

2.18    Sec. 3. Minnesota Statutes 2008, section 37.31, subdivision 7, is amended to read:
2.19    Subd. 7. Approval Notification; commissioner of finance. Before Within 30 days
2.20after issuing and selling bonds under this section, the society must obtain the approval
2.21notify, in writing, of the commissioner of finance of the date of issuance, principal amount,
2.22true interest cost, final maturity date of the issue, and credit rating as applicable.
2.23EFFECTIVE DATE.This section is effective the day following final enactment.

2.24    Sec. 4. Minnesota Statutes 2008, section 37.33, subdivision 3, is amended to read:
2.25    Subd. 3. Investment. Money in a debt service reserve fund not required for
2.26immediate use may be invested in accordance with section 37.07 37.34.
2.27EFFECTIVE DATE.This section is effective the day following final enactment.

2.28    Sec. 5. Minnesota Statutes 2008, section 37.34, is amended to read:
2.2937.34 MONEY OF THE SOCIETY.
2.30The society may contract with the holders of any of its bonds as to the custody,
2.31collection, securing, investment, and payment of money of the society or money held in
2.32trust or otherwise for the payment of bonds, and to carry out the contract. Money held in
3.1trust or otherwise for the payment of bonds or in any way to secure bonds and deposits of
3.2the money may be invested in accordance with chapter 118A and may be secured in the
3.3same manner as money of the society, and all banks and trust companies are authorized
3.4to give security for the deposits.
3.5EFFECTIVE DATE.This section is effective the day following final enactment.

3.6    Sec. 6. Minnesota Statutes 2008, section 126C.55, subdivision 4, is amended to read:
3.7    Subd. 4. Pledge of district's full faith and credit. If, at the request of a school
3.8district or intermediate school district, the state has paid part or all of the principal or
3.9interest due on a district's debt obligation on a specific date, the pledge of the full faith and
3.10credit and unlimited taxing powers of the school district or the member districts of the
3.11intermediate district to repay the principal and interest due on those debt obligations shall
3.12also, without an election or the requirement of a further authorization, become a pledge of
3.13the full faith and credit and unlimited taxing powers of the school district or the member
3.14districts of the intermediate district to repay to the state the amount paid, with interest.
3.15Amounts paid by the state must be repaid in the order in which the state payments were
3.16made. Whenever the state pays under this section interest on bonds for which the issuer is
3.17entitled to federal interest subsidy payments, the state is subrogated to the issuer's rights to
3.18any federal interest subsidy payments relating to the interest paid by the state, unless and
3.19until the state has been reimbursed by the issuer in full.

3.20    Sec. 7. Minnesota Statutes 2008, section 204B.46, is amended to read:
3.21204B.46 MAIL ELECTIONS; QUESTIONS.
3.22    A county, municipality, or school district submitting questions to the voters at a
3.23special election may conduct an election by mail with no polling place other than the office
3.24of the auditor or clerk. No more than two questions may be submitted at a mail election
3.25and no offices may be voted on at a mail election. Notice of the election must be given
3.26to the county auditor at least 53 days prior to the election. This notice shall also fulfill
3.27the requirements of Minnesota Rules, part 8210.3000. The special mail ballot procedures
3.28must be posted at least six weeks prior to the election. No earlier than 20 or later than 14
3.29days prior to the election, the auditor or clerk shall mail ballots by nonforwardable mail
3.30to all voters registered in the county, municipality, or school district. Eligible voters not
3.31registered at the time the ballots are mailed may apply for ballots pursuant to chapter 203B.

3.32    Sec. 8. Minnesota Statutes 2008, section 275.065, subdivision 6, is amended to read:
3.33    Subd. 6. Public hearing; adoption of budget and levy. (a) For purposes of this
3.34section, the following terms shall have the meanings given:
4.1(1) "Initial hearing" means the first and primary hearing held to discuss the taxing
4.2authority's proposed budget and proposed property tax levy for taxes payable in the
4.3following year, or, for school districts, the current budget and the proposed property tax
4.4levy for taxes payable in the following year.
4.5(2) "Continuation hearing" means a hearing held to complete the initial hearing, if
4.6the initial hearing is not completed on its scheduled date.
4.7(3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final
4.8property tax levy, and, in the case of taxing authorities other than school districts, the final
4.9budget, for taxes payable in the following year.
4.10(b) Between November 29 and December 20, the governing bodies of a city that has a
4.11population over 500, county, metropolitan special taxing districts as defined in subdivision
4.123, paragraph (i), and regional library districts shall each hold an initial public hearing
4.13to discuss and seek public comment on its final budget and property tax levy for taxes
4.14payable in the following year, and the governing body of the school district shall hold an
4.15initial public hearing to review its current budget and proposed property tax levy for taxes
4.16payable in the following year. The metropolitan special taxing districts shall be required to
4.17hold only a single joint initial public hearing, the location of which will be determined by
4.18the affected metropolitan agencies. A city, county, metropolitan special taxing district as
4.19defined in subdivision 3, paragraph (i), regional library district established under section
4.20134.201 , or school district is not required to hold a public hearing under this subdivision
4.21unless its proposed property tax levy for taxes payable in the following year, as certified
4.22under subdivision 1, has increased over its final property tax levy for taxes payable in the
4.23current year by a percentage that is greater than the percentage increase in the implicit
4.24price deflator for government consumption expenditures and gross investment for state
4.25and local governments prepared by the Bureau of Economic Analysts of the United States
4.26Department of Commerce for the 12-month period ending March 31 of the current year.
4.27(c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than
4.28Saturday. No initial hearing may be held on a Sunday.
4.29(d) At the initial hearing under this subdivision, the percentage increase in property
4.30taxes proposed by the taxing authority, if any, and the specific purposes for which property
4.31tax revenues are being increased must be discussed. During the discussion, the governing
4.32body shall hear comments regarding a proposed increase and explain the reasons for the
4.33proposed increase. The public shall be allowed to speak and to ask questions. At the public
4.34hearing, the school district must also provide and discuss information on the distribution
4.35of its revenues by revenue source, and the distribution of its spending by program area.
5.1(e) If the initial hearing is not completed on its scheduled date, the taxing authority
5.2must announce, prior to adjournment of the hearing, the date, time, and place for the
5.3continuation of the hearing. The continuation hearing must be held at least five business
5.4days but no more than 14 business days after the initial hearing. A continuation hearing
5.5may not be held later than December 20 except as provided in paragraphs (f) and (g).
5.6A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than
5.7Saturday. No continuation hearing may be held on a Sunday.
5.8(f) The governing body of a county shall hold its initial hearing on the first Thursday
5.9in December each year, and may hold additional initial hearings on other dates before
5.10December 20 if necessary for the convenience of county residents. If the county needs a
5.11continuation of its hearing, the continuation hearing shall be held on the third Tuesday
5.12in December. If the third Tuesday in December falls on December 21, the county's
5.13continuation hearing shall be held on Monday, December 20.
5.14(g) The metropolitan special taxing districts shall hold a joint initial public hearing
5.15on the first Wednesday of December. A continuation hearing, if necessary, shall be held on
5.16the second Wednesday of December even if that second Wednesday is after December 10.
5.17(h) The county auditor shall provide for the coordination of initial and continuation
5.18hearing dates for all school districts and cities within the county to prevent conflicts under
5.19clauses (i) and (j).
5.20(i) By August 10, each school board and the board of the regional library district
5.21shall certify to the county auditors of the counties in which the school district or regional
5.22library district is located the dates on which it elects to hold its initial hearing and any
5.23continuation hearing. If a school board or regional library district does not certify these
5.24dates by August 10, the auditor will assign the initial and continuation hearing dates. The
5.25dates elected or assigned must not conflict with the initial and continuation hearing dates
5.26of the county or the metropolitan special taxing districts.
5.27(j) By August 20, the county auditor shall notify the clerks of the cities within the
5.28county of the dates on which school districts and regional library districts have elected to
5.29hold their initial and continuation hearings. At the time a city certifies its proposed levy
5.30under subdivision 1 it shall certify the dates on which it elects to hold its initial hearing and
5.31any continuation hearing. Until September 15, the first and second Mondays of December
5.32are reserved for the use of the cities. If a city does not certify its hearing dates by
5.33September 15, the auditor shall assign the initial and continuation hearing dates. The dates
5.34elected or assigned for the initial hearing must not conflict with the initial hearing dates
5.35of the county, metropolitan special taxing districts, regional library districts, or school
5.36districts within which the city is located. To the extent possible, the dates of the city's
6.1continuation hearing should not conflict with the continuation hearing dates of the county,
6.2metropolitan special taxing districts, regional library districts, or school districts within
6.3which the city is located. This paragraph does not apply to cities of 500 population or less.
6.4(k) The county initial hearing date and the city, metropolitan special taxing district,
6.5regional library district, and school district initial hearing dates must be designated on
6.6the notices required under subdivision 3. The continuation hearing dates need not be
6.7stated on the notices.
6.8(l) At a subsequent hearing, each county, school district, city over 500 population,
6.9and metropolitan special taxing district may amend its proposed property tax levy
6.10and must adopt a final property tax levy. Each county, city over 500 population, and
6.11metropolitan special taxing district may also amend its proposed budget and must adopt a
6.12final budget at the subsequent hearing. The final property tax levy must be adopted prior
6.13to adopting the final budget. A school district is not required to adopt its final budget at the
6.14subsequent hearing. The subsequent hearing of a taxing authority must be held on a date
6.15subsequent to the date of the taxing authority's initial public hearing. If a continuation
6.16hearing is held, the subsequent hearing must be held either immediately following the
6.17continuation hearing or on a date subsequent to the continuation hearing. The subsequent
6.18hearing may be held at a regularly scheduled board or council meeting or at a special
6.19meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing
6.20of a taxing authority does not have to be coordinated by the county auditor to prevent a
6.21conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any
6.22other taxing authority. All subsequent hearings must be held prior to five working days
6.23after December 20 of the levy year. The date, time, and place of the subsequent hearing
6.24must be announced at the initial public hearing or at the continuation hearing.
6.25(m) The property tax levy certified under section 275.07 by a city of any population,
6.26county, metropolitan special taxing district, regional library district, or school district
6.27must not exceed the proposed levy determined under subdivision 1, except by an amount
6.28up to the sum of the following amounts:
6.29(1) the amount of a school district levy whose voters approved a referendum to
6.30increase taxes under section 123B.63, subdivision 3, or 126C.17, subdivision 9, after
6.31the proposed levy was certified;
6.32(2) the amount of a city or county levy approved by the voters after the proposed
6.33levy was certified;
6.34(3) the amount of a levy to pay principal and interest on bonds approved by the
6.35voters under section 475.58 after the proposed levy was certified;
7.1(4) the amount of a levy to pay costs due to a natural disaster occurring after the
7.2proposed levy was certified, if that amount is approved by the commissioner of revenue
7.3under subdivision 6a;
7.4(5) the amount of a levy to pay tort judgments against a taxing authority that become
7.5final after the proposed levy was certified, if the amount is approved by the commissioner
7.6of revenue under subdivision 6a;
7.7(6) the amount of an increase in levy limits certified to the taxing authority by the
7.8commissioner of education or the commissioner of revenue after the proposed levy was
7.9certified; and
7.10(7) the amount required under section 126C.55; and
7.11(8) the levy to pay emergency debt certificates under section 475.755 authorized and
7.12issued after the proposed levy was certified.
7.13(n) This subdivision does not apply to towns and special taxing districts other than
7.14regional library districts and metropolitan special taxing districts.
7.15(o) Notwithstanding the requirements of this section, the employer is required to
7.16meet and negotiate over employee compensation as provided for in chapter 179A.
7.17EFFECTIVE DATE.This section is effective the day following final enactment.

7.18    Sec. 9. Minnesota Statutes 2008, section 360.036, subdivision 2, is amended to read:
7.19    Subd. 2. Issuance of bonds. (a) Bonds to be issued by a municipality under sections
7.20360.011 to 360.076, shall be authorized and issued in the manner and within the limitation
7.21prescribed by laws or the charter of the municipality for the issuance and authorization of
7.22bonds for public purposes generally, except as provided in paragraphs (b) and (c).
7.23(b) No election is required to authorize the issuance of the bonds if:
7.24(1) a board organized under section 360.042 recommends by a resolution adopted
7.25by a vote of not less than 60 percent of its members the issuance of bonds, and the
7.26bonds are authorized by a resolution of the governing body of each of the municipalities
7.27acting jointly pursuant to section 360.042, adopted by a vote of not less than 60 percent
7.28of its members; or
7.29(2) the bonds are authorized by a resolution of the governing body of the
7.30municipality, adopted by a vote of not less than 60 percent of its members; or
7.31(3) the bonds are being issued for the purpose of financing the costs of constructing,
7.32enlarging, or improving airports and other air navigation facilities; and
7.33(i) the governing body estimates that passenger facility charges and other revenues
7.34pledged to the payment thereof will be at least 20 percent of the debt service payable
7.35on the bonds in any year;
8.1(ii) the project will be funded in part by a state or federal grant for airport
8.2development; and
8.3(iii) the principal amount of the bonds issued under this clause does not exceed 25
8.4percent of the amount of the state or federal grant.
8.5(c) If the bonds are general obligations of the municipality, the levy of taxes required
8.6by section 475.61 to pay principal and interest on the bonds is not included in computing
8.7or applying any levy limitation applicable to the municipality.

8.8    Sec. 10. Minnesota Statutes 2008, section 366.095, subdivision 1, is amended to read:
8.9    Subdivision 1. Certificates of indebtedness. The town board may issue certificates
8.10of indebtedness within the debt limits for a town purpose otherwise authorized by law.
8.11The certificates shall be payable in not more than five ten years and be issued on the terms
8.12and in the manner as the board may determine. If the amount of the certificates to be
8.13issued exceeds 0.25 percent of the market value of the town, they shall not be issued for at
8.14least ten days after publication in a newspaper of general circulation in the town of the
8.15board's resolution determining to issue them. If within that time, a petition asking for an
8.16election on the proposition signed by voters equal to ten percent of the number of voters
8.17at the last regular town election is filed with the clerk, the certificates shall not be issued
8.18until their issuance has been approved by a majority of the votes cast on the question at
8.19a regular or special election. A tax levy shall be made to pay the principal and interest
8.20on the certificates as in the case of bonds.

8.21    Sec. 11. Minnesota Statutes 2008, section 373.01, subdivision 3, is amended to read:
8.22    Subd. 3. Capital notes. (a) A county board may, by resolution and without
8.23referendum, issue capital notes subject to the county debt limit to purchase capital
8.24equipment useful for county purposes that has an expected useful life at least equal to the
8.25term of the notes. The notes shall be payable in not more than ten years and shall be
8.26issued on terms and in a manner the board determines. A tax levy shall be made for
8.27payment of the principal and interest on the notes, in accordance with section 475.61,
8.28as in the case of bonds.
8.29    (b) For purposes of this subdivision, "capital equipment" means:
8.30    (1) public safety, ambulance, road construction or maintenance, and medical
8.31equipment, and other capital equipment; and
8.32    (2) computer hardware and software, whether bundled with machinery or equipment
8.33or unbundled, together with application development services and training related to the
8.34use of the computer hardware and software and fiber-optic cable or other means of voice
8.35and data transmission among municipal buildings, provided that software, application,
9.1and development services and training shall be deemed to have the same useful life as the
9.2computer equipment to which they are related.

9.3    Sec. 12. Minnesota Statutes 2008, section 373.40, subdivision 1, is amended to read:
9.4    Subdivision 1. Definitions. For purposes of this section, the following terms have
9.5the meanings given.
9.6(a) "Bonds" means an obligation as defined under section 475.51.
9.7(b) "Capital improvement" means acquisition or betterment of public lands,
9.8buildings, or other improvements within the county for the purpose of a county
9.9courthouse, administrative building, health or social service facility, correctional facility,
9.10jail, law enforcement center, hospital, morgue, library, park, qualified indoor ice arena,
9.11roads and bridges, public works facilities, fairgrounds buildings, fiber-optic cable or other
9.12means of voice and data transmission among municipal buildings, and the acquisition
9.13of development rights in the form of conservation easements under chapter 84C. An
9.14improvement must have an expected useful life of five years or more to qualify. "Capital
9.15improvement" does not include light rail transit or any activity related to it or a recreation
9.16or sports facility building (such as, but not limited to, a gymnasium, ice arena, racquet
9.17sports facility, swimming pool, exercise room or health spa), unless the building is part of
9.18an outdoor park facility and is incidental to the primary purpose of outdoor recreation.
9.19(c) "Metropolitan county" means a county located in the seven-county metropolitan
9.20area as defined in section 473.121 or a county with a population of 90,000 or more.
9.21(d) "Population" means the population established by the most recent of the
9.22following (determined as of the date the resolution authorizing the bonds was adopted):
9.23(1) the federal decennial census,
9.24(2) a special census conducted under contract by the United States Bureau of the
9.25Census, or
9.26(3) a population estimate made either by the Metropolitan Council or by the state
9.27demographer under section 4A.02.
9.28(e) "Qualified indoor ice arena" means a facility that meets the requirements of
9.29section 373.43.
9.30(f) "Tax capacity" means total taxable market value, but does not include captured
9.31market value.

9.32    Sec. 13. Minnesota Statutes 2008, section 373.47, subdivision 1, is amended to read:
9.33    Subdivision 1. Authority to incur debt. Subject to prior approval by the Statewide
9.34Radio Board under section 403.36, the governing body of a county may finance the cost of
10.1designing, constructing, and acquiring public safety communication system infrastructure
10.2and equipment for use on the statewide, shared public safety radio system by issuing:
10.3    (1) capital improvement bonds under section 373.40, as if the infrastructure and
10.4equipment qualified as a "capital improvement" within the meaning of section 373.40,
10.5subdivision 1 , paragraph (b), bonds issued under this section are exempt from and shall
10.6not be included in calculating the limitations in section 373.40, subdivision 4; and
10.7    (2) capital notes under the provisions of section 373.01, subdivision 3, as if the
10.8equipment qualified as "capital equipment" within the meaning of section 373.01,
10.9subdivision 3 .
10.10EFFECTIVE DATE.This section is effective the day following final enactment
10.11and applies to bonds issued after May 22, 2002.

10.12    Sec. 14. Minnesota Statutes 2008, section 373.48, is amended by adding a subdivision
10.13to read:
10.14    Subd. 3. Joint purchase of energy and acquisition of generation projects;
10.15financing. (a) A county may enter into agreements under section 471.59 with other
10.16counties for joint purchase of energy or joint acquisition of interests in projects. A
10.17county may annually levy an ad valorem tax for the purpose of paying the cost of energy
10.18purchased or acquiring interests in projects in an amount not exceeding 0.015 percent of
10.19the market value of taxable property in the county. A county that enters into a multiyear
10.20agreement for purchase of energy or acquires an interest in a project, including C-BED
10.21projects pursuant to section 216B.1612, subdivision 9, may finance the estimated cost of
10.22the energy to be purchased during the term of the agreement or the cost to the county
10.23of the interest in the project by the issuance of general obligation bonds of the county,
10.24including clean renewable energy bonds, provided that the annual debt service on all
10.25bonds issued under this section, together with the amounts to be paid by the county in any
10.26year for the purchase of energy under agreements entered into under this section, must
10.27not exceed the amount of taxes authorized by this section.
10.28(b) An agreement entered into under section 471.59 as provided by this section
10.29may provide that:
10.30(1) each county shall issue bonds to pay their respective shares of the cost of the
10.31projects;
10.32(2) one of the counties shall issue bonds to pay the full costs of the project and that
10.33the other participating counties shall levy the tax authorized under this subdivision and
10.34pledge the collections of the tax to the county that issues the bonds; or
11.1(3) the joint powers board shall issue revenue bonds to pay the full costs of
11.2the project and that the participating counties shall levy the tax authorized under this
11.3subdivision and pledge the collections of the tax to the joint powers entity for payment of
11.4the revenue bonds.
11.5(c) Bonds issued under this section may be issued without an election and shall not
11.6constitute net debt of any participating county.

11.7    Sec. 15. Minnesota Statutes 2008, section 383B.117, subdivision 2, is amended to read:
11.8    Subd. 2. Equipment acquisition; capital notes. The board may, by resolution and
11.9without public referendum, issue capital notes within existing debt limits for the purpose
11.10of purchasing ambulance and other medical equipment, road construction or maintenance
11.11equipment, public safety equipment and other capital equipment having an expected useful
11.12life at least equal to the term of the notes issued. The notes shall be payable in not more
11.13than ten years and shall be issued on terms and in a manner as the board determines. The
11.14total principal amount of the notes issued for any fiscal year shall not exceed one percent of
11.15the total annual budget for that year and shall be issued solely for the purchases authorized
11.16in this subdivision. A tax levy shall be made for the payment of the principal and interest
11.17on such notes as in the case of bonds. For purposes of this subdivision, "equipment"
11.18includes computer hardware and software, whether bundled with machinery or equipment
11.19or unbundled, together with application development services and training related to the
11.20use of the computer hardware and software and fiber-optic cable or other means of voice
11.21and data transmission among municipal buildings, provided that software, application,
11.22and development services and training shall be deemed to have the same useful life as
11.23the computer equipment to which they are related. For purposes of this subdivision, the
11.24term "medical equipment" includes computer hardware and software and other intellectual
11.25property for use in medical diagnosis, medical procedures, research, record keeping,
11.26billing, and other hospital applications, together with application development services
11.27and training related to the use of the computer hardware and software and other intellectual
11.28property, all without regard to their useful life. For purposes of determining the amount
11.29of capital notes which the county may issue in any year, the budget of the county and
11.30Hennepin Healthcare System, Inc. shall be combined and the notes issuable under this
11.31subdivision shall be in addition to obligations issuable under section 373.01, subdivision 3.

11.32    Sec. 16. Minnesota Statutes 2008, section 410.32, is amended to read:
11.33410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
12.1    (a) Notwithstanding any contrary provision of other law or charter, a home rule
12.2charter city may, by resolution and without public referendum, issue capital notes subject
12.3to the city debt limit to purchase capital equipment.
12.4    (b) For purposes of this section, "capital equipment" means:
12.5    (1) public safety equipment, ambulance and other medical equipment, road
12.6construction and maintenance equipment, and other capital equipment; and
12.7    (2) computer hardware and software, whether bundled with machinery or equipment
12.8or unbundled, together with application development services and training related to the
12.9use of the computer hardware and software and fiber-optic cable or other means of voice
12.10and data transmission among municipal buildings, provided that software, application,
12.11and development services and training shall be deemed to have the same useful life as the
12.12computer equipment to which they are related.
12.13    (c) The capital equipment or software must have an expected useful life at least
12.14as long as the term of the notes.
12.15    (d) The notes shall be payable in not more than ten years and be issued on terms and
12.16in the manner the city determines. The total principal amount of the capital notes issued
12.17in a fiscal year shall not exceed 0.03 percent of the market value of taxable property
12.18in the city for that year.
12.19    (e) A tax levy shall be made for the payment of the principal and interest on the
12.20notes, in accordance with section 475.61, as in the case of bonds.
12.21    (f) Notes issued under this section shall require an affirmative vote of two-thirds of
12.22the governing body of the city.
12.23    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
12.24city may also issue capital notes subject to its debt limit in the manner and subject to the
12.25limitations applicable to statutory cities pursuant to section 412.301.

12.26    Sec. 17. Minnesota Statutes 2008, section 412.301, is amended to read:
12.27412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
12.28    (a) The council may issue certificates of indebtedness or capital notes subject to the
12.29city debt limits to purchase capital equipment.
12.30    (b) For purposes of this section, "capital equipment" means:
12.31    (1) public safety equipment, ambulance and other medical equipment, road
12.32construction and maintenance equipment, and other capital equipment; and
12.33    (2) computer hardware and software, whether bundled with machinery or equipment
12.34or unbundled, together with application development services and training related to the
12.35use of the computer hardware and software and fiber-optic cable or other means of voice
13.1and data transmission among municipal buildings, provided that software, application,
13.2and development services and training shall be deemed to have the same useful life as the
13.3computer equipment to which they are related.
13.4    (c) The capital equipment or software must have an expected useful life at least as
13.5long as the terms of the certificates or notes.
13.6    (d) Such certificates or notes shall be payable in not more than ten years and shall be
13.7issued on such terms and in such manner as the council may determine.
13.8    (e) If the amount of the certificates or notes to be issued to finance any such purchase
13.9exceeds 0.25 percent of the market value of taxable property in the city, they shall not
13.10be issued for at least ten days after publication in the official newspaper of a council
13.11resolution determining to issue them; and if before the end of that time, a petition asking
13.12for an election on the proposition signed by voters equal to ten percent of the number of
13.13voters at the last regular municipal election is filed with the clerk, such certificates or notes
13.14shall not be issued until the proposition of their issuance has been approved by a majority
13.15of the votes cast on the question at a regular or special election.
13.16    (f) A tax levy shall be made for the payment of the principal and interest on such
13.17certificates or notes, in accordance with section 475.61, as in the case of bonds.

13.18    Sec. 18. Minnesota Statutes 2008, section 428A.03, subdivision 1, is amended to read:
13.19    Subdivision 1. Hearing. Service charges may be imposed by the city within the
13.20special service district at a rate or amount sufficient to produce the revenues required to
13.21provide special services in the district. To determine the appropriate rate for a service
13.22charge based on net tax capacity, taxable property or net tax capacity must be determined
13.23without regard to captured or original net tax capacity under section 469.177 or to the
13.24distribution or contribution value under section 473F.08. Service charges may not be
13.25imposed to finance a special service if the service is ordinarily provided by the city from
13.26its general fund revenues unless the service is provided in the district at an increased level.
13.27In that case, a service charge may be imposed only in the amount needed to pay for the
13.28increased level of service. A service charge may not be imposed on the receipts from the
13.29sale of intoxicating liquor, food, or lodging. Before the imposition of service charges in a
13.30district, for each calendar year, a hearing must be held under section 428A.02 and notice
13.31must be given and must be mailed to any owner, individual, or business organization
13.32subject to a service charge. For purposes of this section, the notice shall also include:
13.33(1) a statement that all interested persons will be given an opportunity to be heard at
13.34the hearing regarding a proposed service charge;
14.1(2) the estimated cost of improvements to be paid for in whole or in part by service
14.2charges imposed under this section, the estimated cost of operating and maintaining
14.3the improvements during the first year and upon completion of the improvements, the
14.4proposed method and source of financing the improvements, and the annual cost of
14.5operating and maintaining the improvements;
14.6(3) the proposed rate or amount of the proposed service charge to be imposed in
14.7the district during the calendar year and the nature and character of special services to
14.8be rendered in the district during the calendar year in which the service charge is to be
14.9collected; and
14.10(4) a statement that the petition requirements of section 428A.08 have either been
14.11met or do not apply to the proposed service charge.
14.12Within six months of the public hearing, the city may adopt a resolution imposing
14.13a service charge within the district not exceeding the amount or rate expressed in the
14.14notice issued under this section.

14.15    Sec. 19. Minnesota Statutes 2008, section 428A.08, is amended to read:
14.16428A.08 PETITION REQUIRED.
14.17No action may be taken under section 428A.02 or 428A.03, unless owners of 25
14.18percent or more of the land area of property that would be subject to service charges in the
14.19proposed special service district and either: (1) owners of 25 percent or more of the net tax
14.20capacity of property that would be subject to a proposed service charges in the proposed
14.21special service district charge, based on net tax capacity; or (2) owners, individuals, and
14.22business organizations subject to 25 percent or more of a proposed service charge based
14.23on other than net tax capacity file a petition requesting a public hearing on the proposed
14.24action with the city clerk. No action may be taken under section 428A.03 to impose
14.25a service charge based on net tax capacity unless owners of 25 percent or more of the
14.26land area subject to a proposed service charge and owners of 25 percent or more of the
14.27net tax capacity subject to a proposed service charge file a petition requesting a public
14.28hearing on the proposed action with the city clerk. No action may be taken under section
14.29428A.03 to impose any other type of service charge unless 25 percent or more of the
14.30individual or business organizations subject to the proposed service charge file a petition
14.31requesting a public hearing on the proposed action with the city clerk. If the boundaries of
14.32a proposed district are changed or the land area or net tax capacity subject to a service
14.33charge or the individuals or business organizations subject to a service charge are changed
14.34after the public hearing, a petition meeting the requirements of this section must be filed
15.1with the city clerk before the ordinance establishing the district or resolution imposing
15.2the service charge may become effective.

15.3    Sec. 20. Minnesota Statutes 2008, section 428A.09, is amended to read:
15.4428A.09 VETO POWER OF OWNERS.
15.5    Subdivision 1. Notice of right to file objections. Except as provided in section
15.6428A.10 , the effective date of any ordinance or resolution adopted under sections 428A.02
15.7and 428A.03 must be at least 45 days after it is adopted. Within five days after adoption
15.8of the ordinance or resolution, a summary of the ordinance or resolution must be mailed
15.9to the owner of each parcel included in the special service district and any individual or
15.10business organization subject to a service charge in the same manner that notice is mailed
15.11under section 428A.02. The mailing must include a notice that owners subject to a service
15.12charge based on net tax capacity and owners, individuals, and business organizations
15.13subject to a service charge imposed on another basis have a right to veto the ordinance
15.14or resolution by filing the required number of objections with the city clerk before the
15.15effective date of the ordinance or resolution and that a copy of the ordinance or resolution
15.16is on file with the city clerk for public inspection.
15.17    Subd. 2. Requirements for veto. If owners of 35 percent or more of the land
15.18area in the district subject to the service charge based on net tax capacity or owners
15.19of, individuals, and business organizations subject to 35 percent or more of the net tax
15.20capacity in the district subject to the service charge based on net tax capacity service
15.21charges to be imposed in the district, file an objection to the ordinance adopted by the city
15.22under section 428A.02 with the city clerk before the effective date of the ordinance, the
15.23ordinance does not become effective. If owners of 35 percent or more of the land area
15.24subject to the service charge based on net tax capacity or owners of 35 percent or more
15.25of the net tax capacity subject to the service charge based on net tax capacity file an
15.26objection to the resolution adopted imposing a service charge based on net tax capacity
15.27under section 428A.03 with the city clerk before the effective date of the resolution, the
15.28resolution does not become effective. If 35 percent or more of owners, individuals, and
15.29business organizations subject to a 35 percent or more of the service charge charges to
15.30be imposed in the district file an objection to the resolution adopted imposing a service
15.31charge on a basis other than net tax capacity under section 428A.03 with the city clerk
15.32before the effective date of the resolution, the resolution does not become effective. In the
15.33event of a veto, no district shall be established during the current calendar year and until a
15.34petition meeting the qualifications set forth in this subdivision for a veto has been filed.

16.1    Sec. 21. Minnesota Statutes 2008, section 428A.10, is amended to read:
16.2428A.10 EXCLUSION FROM PETITION REQUIREMENTS AND VETO
16.3POWER.
16.4The petition requirements of section 428A.08 and do not apply to second or
16.5subsequent years' action to impose service charges under section 428A.03. The right of
16.6owners and those subject to a service charge to veto a resolution in section 428A.09
16.7do does not apply to second or subsequent years' applications of a service charge that
16.8is authorized to be in effect for more than one year under a resolution that has met the
16.9petition requirements of section 428A.08 and which has not been vetoed under section
16.10428A.09 for the first year's application. A resolution imposing a service charge for more
16.11than one year must not be adopted unless the notice of public hearing required by section
16.12428A.03 and the notice mailed with the adopted resolution under section 428A.09 include
16.13the following information:
16.14(1) in the case of improvements, the maximum service charge to be imposed in any
16.15year and the maximum number of years the service charges charge is imposed to pay
16.16for the improvement; and
16.17(2) in the case of operating and maintenance services, the maximum service charge
16.18to be imposed in any year and the maximum number of years, or a statement that the
16.19service charge will be imposed for an indefinite number of years, the service charges will
16.20be imposed to pay for operation and maintenance services.
16.21The resolution may provide that the maximum service charge to be imposed in any
16.22year will increase or decrease from the maximum amount authorized in the preceding
16.23year based on an indicator of increased cost or a percentage amount established by the
16.24resolution.

16.25    Sec. 22. Minnesota Statutes 2008, section 428A.101, is amended to read:
16.26428A.101 DEADLINE FOR SPECIAL SERVICE DISTRICT UNDER
16.27GENERAL LAW.
16.28The establishment of a new special service district after June 30, 2009 2013, requires
16.29enactment of a special law authorizing the establishment.
16.30EFFECTIVE DATE.This section is effective the day following final enactment.

16.31    Sec. 23. Minnesota Statutes 2008, section 428A.21, is amended to read:
16.32428A.21 DEADLINE FOR HOUSING IMPROVEMENT DISTRICTS UNDER
16.33GENERAL LAW.
17.1The establishment of a new housing improvement area after June 30, 2009 2012,
17.2requires enactment of a special law authorizing the establishment of the area.
17.3EFFECTIVE DATE.This section is effective the day following final enactment.

17.4    Sec. 24. Minnesota Statutes 2008, section 446A.086, is amended by adding a
17.5subdivision to read:
17.6    Subd. 12. Federal interest subsidy payments. Whenever the state pays under
17.7this section interest on bonds for which the issuer is entitled to federal interest subsidy
17.8payments, the state is subrogated to the issuer's rights to any federal interest subsidy
17.9payments relating to the interest paid by the state, unless and until the state has been
17.10reimbursed by the issuer in full.

17.11    Sec. 25. Minnesota Statutes 2008, section 469.005, subdivision 1, is amended to read:
17.12    Subdivision 1. County and multicounty authorities. The area of operation of a
17.13county authority shall include all of the county for which it is created, and in case of
17.14a multicounty authority, it shall include all of the political subdivisions for which the
17.15multicounty authority is created; provided, that a county authority or a multicounty
17.16authority shall not undertake any project within the boundaries of any city which has not
17.17empowered the authority to function therein as provided in section 469.004 unless a
17.18resolution has been adopted by the governing body of the city, and by any authority which
17.19has been established in the city, declaring that there is a need for the county or multicounty
17.20authority to exercise its powers in the city. A resolution is not required for the operation of
17.21a Section 8 program or a public housing scattered site project.

17.22    Sec. 26. Minnesota Statutes 2008, section 469.034, subdivision 2, is amended to read:
17.23    Subd. 2. General obligation revenue bonds. (a) An authority may pledge the
17.24general obligation of the general jurisdiction governmental unit as additional security for
17.25bonds payable from income or revenues of the project or the authority. The authority
17.26must find that the pledged revenues will equal or exceed 110 percent of the principal and
17.27interest due on the bonds for each year. The proceeds of the bonds must be used for a
17.28qualified housing development project or projects. The obligations must be issued and
17.29sold in the manner and following the procedures provided by chapter 475, except the
17.30obligations are not subject to approval by the electors, and the maturities may extend to
17.31not more than 35 years for obligations sold to finance housing for the elderly and 40 years
17.32for other obligations issued under this subdivision. The authority is the municipality for
17.33purposes of chapter 475.
18.1(b) The principal amount of the issue must be approved by the governing body of
18.2the general jurisdiction governmental unit whose general obligation is pledged. Public
18.3hearings must be held on issuance of the obligations by both the authority and the general
18.4jurisdiction governmental unit. The hearings must be held at least 15 days, but not more
18.5than 120 days, before the sale of the obligations.
18.6(c) The maximum amount of general obligation bonds that may be issued and
18.7outstanding under this section equals the greater of (1) one-half of one percent of
18.8the taxable market value of the general jurisdiction governmental unit whose general
18.9obligation is pledged, or (2) $3,000,000. In the case of county or multicounty general
18.10obligation bonds, the outstanding general obligation bonds of all cities in the county
18.11or counties issued under this subdivision must be added in calculating the limit under
18.12clause (1).
18.13(d) "General jurisdiction governmental unit" means the city in which the housing
18.14development project is located. In the case of a county or multicounty authority, the
18.15county or counties may act as the general jurisdiction governmental unit. In the case of
18.16a multicounty authority, the pledge of the general obligation is a pledge of a tax on the
18.17taxable property in each of the counties.
18.18(e) "Qualified housing development project" means a housing development project
18.19providing housing either for the elderly or for individuals and families with incomes not
18.20greater than 80 percent of the median family income as estimated by the United States
18.21Department of Housing and Urban Development for the standard metropolitan statistical
18.22area or the nonmetropolitan county in which the project is located. The project must be
18.23owned for the term of the bonds either by the authority or by a limited partnership or other
18.24entity in which the authority or another entity under the sole control of the authority is the
18.25sole general partner and the partnership or other entity must receive (1) an allocation from
18.26the Department of Finance or an entitlement issuer of tax-exempt bonding authority for
18.27the project and a preliminary determination by the Minnesota Housing Finance Agency
18.28or the applicable suballocator of tax credits that the project will qualify for four percent
18.29low-income housing tax credits or (2) a reservation of nine percent low-income housing
18.30tax credits from the Minnesota Housing Finance Agency or a suballocator of tax credits
18.31for the project. A qualified housing development project may admit nonelderly individuals
18.32and families with higher incomes if:
18.33(1) three years have passed since initial occupancy;
18.34(2) the authority finds the project is experiencing unanticipated vacancies resulting in
18.35insufficient revenues, because of changes in population or other unforeseen circumstances
18.36that occurred after the initial finding of adequate revenues; and
19.1(3) the authority finds a tax levy or payment from general assets of the general
19.2jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher
19.3income individuals or families are not admitted.
19.4(f) The authority may issue bonds to refund bonds issued under this subdivision in
19.5accordance with section 475.67. The finding of the adequacy of pledged revenues required
19.6by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the
19.7issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
19.8after July 1, 1992.

19.9    Sec. 27. Minnesota Statutes 2008, section 469.153, subdivision 2, is amended to read:
19.10    Subd. 2. Project. (a) "Project" means (1) any properties, real or personal, used
19.11or useful in connection with a revenue producing enterprise, or any combination of
19.12two or more such enterprises engaged or to be engaged in generating, transmitting, or
19.13distributing electricity, assembling, fabricating, manufacturing, mixing, processing,
19.14storing, warehousing, or distributing any products of agriculture, forestry, mining, or
19.15manufacture, or in research and development activity in this field, or in the manufacturing,
19.16creation, or production of intangible property, including any patent, copyright, formula,
19.17process, design, know how, format, or other similar item; (2) any properties, real or
19.18personal, used or useful in the abatement or control of noise, air, or water pollution, or in
19.19the disposal of solid wastes, in connection with a revenue producing enterprise, or any
19.20combination of two or more such enterprises engaged or to be engaged in any business
19.21or industry; (3) any properties, real or personal, used or useful in connection with the
19.22business of telephonic communications, conducted or to be conducted by a telephone
19.23company, including toll lines, poles, cables, switching, and other electronic equipment
19.24and administrative, data processing, garage, and research and development facilities;
19.25(4) any properties, real or personal, used or useful in connection with a district heating
19.26system, consisting of the use of one or more energy conversion facilities to produce hot
19.27water or steam for distribution to homes and businesses, including cogeneration facilities,
19.28distribution lines, service facilities, and retrofit facilities for modifying the user's heating
19.29or water system to use the heat energy converted from the steam or hot water.
19.30(b) "Project" also includes any properties, real or personal, used or useful in
19.31connection with a revenue producing enterprise, or any combination of two or more
19.32such enterprises engaged in any business.
19.33(c) "Project" also includes any properties, real or personal, used or useful for the
19.34promotion of tourism in the state. Properties may include hotels, motels, lodges, resorts,
20.1recreational facilities of the type that may be acquired under section 471.191, and related
20.2facilities.
20.3(d) "Project" also includes any properties, real or personal, used or useful in
20.4connection with a revenue producing enterprise, whether or not operated for profit,
20.5engaged in providing health care services, including hospitals, nursing homes, and related
20.6medical facilities.
20.7(e) "Project" does not include any property to be sold or to be affixed to or consumed
20.8in the production of property for sale, and does not include any housing facility to be
20.9rented or used as a permanent residence.
20.10(f) "Project" also means the activities of any revenue producing enterprise involving
20.11the construction, fabrication, sale, or leasing of equipment or products to be used in
20.12gathering, processing, generating, transmitting, or distributing solar, wind, geothermal,
20.13biomass, agricultural or forestry energy crops, or other alternative energy sources for
20.14use by any person or any residential, commercial, industrial, or governmental entity in
20.15heating, cooling, or otherwise providing energy for a facility owned or operated by that
20.16person or entity.
20.17(g) "Project" also includes any properties, real or personal, used or useful in
20.18connection with a county jail, county regional jail, community corrections facilities
20.19authorized by chapter 401, or other law enforcement facilities, the plans for which are
20.20approved by the commissioner of corrections; provided that the provisions of section
20.21469.155, subdivisions 7 and 13 , do not apply to those projects.
20.22(h) "Project" also includes any real properties used or useful in furtherance of the
20.23purpose and policy of section 469.141.
20.24(i) "Project" also includes related facilities as defined by section 471A.02,
20.25subdivision 11 .
20.26(j) "Project" also includes an undertaking to purchase the obligations of local
20.27governments located in whole or in part within the boundaries of the municipality that are
20.28issued or to be issued for public purposes.

20.29    Sec. 28. Minnesota Statutes 2008, section 471.191, subdivision 1, is amended to read:
20.30    Subdivision 1. Lease to nonprofit. Any city operating a program of public
20.31recreation and playgrounds pursuant to sections 471.15 to 471.19 may acquire or lease,
20.32equip, and maintain land, buildings, and other recreational facilities, including, but
20.33without limitation, outdoor or indoor swimming pools, skating rinks and arenas, athletic
20.34fields, golf courses, marinas, concert halls, museums, and facilities for other kinds of
20.35athletic or cultural participation, contests, conventions, conferences, and exhibitions,
21.1together with related automobile parking facilities as defined in section 459.14, and may
21.2expend funds for the operation of such program and borrow and expend funds for capital
21.3costs thereof pursuant to the provisions of this section. A school district operating a
21.4program of public recreation and playgrounds has the rights provided in this section. Any
21.5facilities to be operated by a nonprofit corporation, as contemplated in section 471.16,
21.6may be leased to the corporation upon such rentals and for such term, not exceeding 30
21.7years, and subject to such other provisions as may be agreed; including but not limited to
21.8provisions (a) permitting the lessee, subject to whatever conditions are stated, to provide
21.9for the construction and equipment of the facilities by any means available to it and in the
21.10manner determined by it, without advertisement for bids as required for other municipal
21.11facilities, and (b) granting the lessee the option to renew the lease upon such conditions
21.12and rentals, or to purchase the facilities at such price, as may be agreed; provided that (c)
21.13any such lease shall require the lessee to pay net rentals sufficient to pay the principal,
21.14interest, redemption premiums, and other expenses when due with respect to all city
21.15bonds issued for the acquisition or betterment of the facilities, less such amount of taxes
21.16and special assessments, if any, as may become payable in any year of the term of the
21.17lease, on the land, building, or other facilities leased, and (d) no option shall be granted
21.18to purchase the facilities at any time at a price less than the amount required to pay all
21.19principal and interest to become due on such bonds to the earliest date or dates on which
21.20they may be paid and redeemed, and all redemption premiums and other expenses of
21.21such payment and redemption.

21.22    Sec. 29. Minnesota Statutes 2008, section 473.1293, is amended by adding a
21.23subdivision to read:
21.24    Subd. 6. Renewable energy; transit or wastewater facilities. For purposes of
21.25providing a source of renewable energy for its transit or wastewater facilities, the council
21.26may exercise the powers of a county under section 373.48; provided that funding for such
21.27purposes shall be from the proceeds of bonds issued for transit or wastewater purposes
21.28under section 473.39 or 473.541.

21.29    Sec. 30. Minnesota Statutes 2008, section 473.39, is amended by adding a subdivision
21.30to read:
21.31    Subd. 1o. Obligations. After July 1, 2009, in addition to other authority in this
21.32section, the council may issue certificates of indebtedness, bonds, or other obligations
21.33under this section in an amount not exceeding $34,200,000 for capital expenditures as
21.34prescribed in the council's regional transit master plan and transit capital improvement
21.35program and for related costs, including the costs of issuance and sale of the obligations.
22.1EFFECTIVE DATE; APPLICATION.This section is effective the day following
22.2final enactment and applies to the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
22.3Scott, and Washington.

22.4    Sec. 31. Minnesota Statutes 2008, section 474A.02, subdivision 2, is amended to read:
22.5    Subd. 2. Annual volume cap. "Annual volume cap" means the aggregate dollar
22.6amount of obligations constituting "private activity bonds" under federal tax law and
22.7bearing interest excluded from gross income for purposes of federal income taxation
22.8which, under the provisions of federal tax law, may be issued in one year by issuers.
22.9Employees of the department shall handle the volume cap allocations for obligations
22.10permitted under the federal American Recovery and Reinvestment Act of 2009, whether
22.11taxable or tax-exempt, in accordance with orders of the commissioner.

22.12    Sec. 32. Minnesota Statutes 2008, section 474A.02, subdivision 14, is amended to read:
22.13    Subd. 14. Manufacturing project. "Manufacturing project" means any facility
22.14which is used in the manufacturing or production of tangible personal property,
22.15including the processing resulting in a change in the condition of the property, or in the
22.16manufacturing, creation, or production of intangible property, including any patent,
22.17copyright, formula, process, design, know how, format, or other similar item.

22.18    Sec. 33. Minnesota Statutes 2008, section 475.51, subdivision 4, is amended to read:
22.19    Subd. 4. Net debt. "Net debt" means the amount remaining after deducting from its
22.20gross debt the amount of current revenues which are applicable within the current fiscal
22.21year to the payment of any debt and the aggregate of the principal of the following:
22.22    (1) Obligations issued for improvements which are payable wholly or partly from the
22.23proceeds of special assessments levied upon property specially benefited thereby, including
22.24those which are general obligations of the municipality issuing them, if the municipality is
22.25entitled to reimbursement in whole or in part from the proceeds of the special assessments.
22.26    (2) Warrants or orders having no definite or fixed maturity.
22.27    (3) Obligations payable wholly from the income from revenue producing
22.28conveniences.
22.29    (4) Obligations issued to create or maintain a permanent improvement revolving
22.30fund.
22.31    (5) Obligations issued for the acquisition, and betterment of public waterworks
22.32systems, and public lighting, heating or power systems, and of any combination thereof or
22.33for any other public convenience from which a revenue is or may be derived.
23.1    (6) Debt service loans and capital loans made to a school district under the provisions
23.2of sections 126C.68 and 126C.69.
23.3    (7) Amount of all money and the face value of all securities held as a debt service
23.4fund for the extinguishment of obligations other than those deductible under this
23.5subdivision.
23.6    (8) Obligations to repay loans made under section 216C.37.
23.7    (9) Obligations to repay loans made from money received from litigation or
23.8settlement of alleged violations of federal petroleum pricing regulations.
23.9    (10) Obligations issued to pay pension fund or other postemployment benefit
23.10liabilities under section 475.52, subdivision 6, or any charter authority.
23.11    (11) Obligations issued to pay judgments against the municipality under section
23.12475.52, subdivision 6 , or any charter authority.
23.13(12) Obligations issued by a school district to pay other postemployment benefits.
23.14    (12) (13) All other obligations which under the provisions of law authorizing their
23.15issuance are not to be included in computing the net debt of the municipality.
23.16EFFECTIVE DATE.This section is effective for obligations sold after August
23.171, 2009.

23.18    Sec. 34. Minnesota Statutes 2008, section 475.52, subdivision 6, is amended to read:
23.19    Subd. 6. Certain purposes. Any municipality may issue bonds for paying
23.20judgments against it; for refunding outstanding bonds; for funding floating indebtedness;
23.21for funding actuarial liabilities to pay postemployment benefits to employees or officers
23.22after their termination of service; or for funding all or part of the municipality's current
23.23and future unfunded liability for a pension or retirement fund or plan referred to in section
23.24356.20, subdivision 2 , as those liabilities are most recently computed pursuant to sections
23.25356.215 and 356.216. The board of trustees or directors of a pension fund or relief
23.26association referred to in section 69.77 or chapter 422A must consent and must be a party
23.27to any contract made under this section with respect to the fund held by it for the benefit of
23.28and in trust for its members. A school district may issue bonds to pay postemployment
23.29benefits to employees or officers after their termination of service. For purposes of this
23.30section, the term "postemployment benefits" means benefits giving rise to a liability under
23.31Statement No. 45 of the Governmental Accounting Standards Board.
23.32EFFECTIVE DATE.This section is effective for obligations sold after August
23.331, 2009.

23.34    Sec. 35. Minnesota Statutes 2008, section 475.58, subdivision 1, is amended to read:
24.1    Subdivision 1. Approval by electors; exceptions. Obligations authorized by law or
24.2charter may be issued by any municipality upon obtaining the approval of a majority of
24.3the electors voting on the question of issuing the obligations, but an election shall not be
24.4required to authorize obligations issued:
24.5    (1) to pay any unpaid judgment against the municipality;
24.6    (2) for refunding obligations;
24.7    (3) for an improvement or improvement program, which obligation is payable wholly
24.8or partly from the proceeds of special assessments levied upon property specially benefited
24.9by the improvement or by an improvement within the improvement program, or from tax
24.10increments, as defined in section 469.174, subdivision 25, including obligations which are
24.11the general obligations of the municipality, if the municipality is entitled to reimbursement
24.12in whole or in part from the proceeds of such special assessments or tax increments and
24.13not less than 20 percent of the cost of the improvement or the improvement program is to
24.14be assessed against benefited property or is to be paid from the proceeds of federal grant
24.15funds or a combination thereof, or is estimated to be received from tax increments;
24.16    (4) payable wholly from the income of revenue producing conveniences;
24.17    (5) under the provisions of a home rule charter which permits the issuance of
24.18obligations of the municipality without election;
24.19    (6) under the provisions of a law which permits the issuance of obligations of a
24.20municipality without an election;
24.21    (7) to fund pension or retirement fund or postemployment benefit liabilities pursuant
24.22to section 475.52, subdivision 6;
24.23    (8) under a capital improvement plan under section 373.40; and
24.24    (9) under sections 469.1813 to 469.1815 (property tax abatement authority bonds), if
24.25the proceeds of the bonds are not used for a purpose prohibited under section 469.176,
24.26subdivision 4g , paragraph (b); and
24.27(10) under section 475.755.
24.28EFFECTIVE DATE.This section is effective the day following final enactment,
24.29except that the changes made to clause (7) are effective for obligations sold after August
24.301, 2009.

24.31    Sec. 36. Minnesota Statutes 2008, section 475.67, subdivision 8, is amended to read:
24.32    Subd. 8. Escrow account securities. Securities purchased for the escrow account
24.33shall be limited to:
24.34(a) general obligations of the United States, securities whose principal and interest
24.35payments are guaranteed by the United States, and securities issued by the following
25.1agencies of the United States: Banks for Cooperatives, Federal Home Loan Banks,
25.2Federal Intermediate Credit Banks, Federal Land Banks, and the Federal National
25.3Mortgage Association; or
25.4(b) obligations issued or guaranteed by any state or any political subdivision of a
25.5state, which at the date of purchase are rated in the highest or the next highest rating
25.6given category by Standard and Poor's Corporation, Moody's Investors Service, or a
25.7similar nationally recognized rating agency, but not less than the rating on the refunded
25.8bonds immediately prior to the refunding.
25.9"Rating category," as used in this subdivision, means a generic securities rating
25.10category, without regard in the case of a long-term rating category to any refinement or
25.11gradation of such long-term rating category by a numerical modifier or otherwise.

25.12    Sec. 37. [475.755] EMERGENCY DEBT CERTIFICATES.
25.13(a) If at any time during a fiscal year the receipts of a local government are
25.14reasonably expected to be reduced below the amount provided in the local government's
25.15budget when the final property tax levy to be collected during the fiscal year was certified
25.16and the receipts are insufficient to meet the expenses incurred or to be incurred during the
25.17fiscal year, the governing body of the local government may authorize and sell certificates
25.18of indebtedness to mature within two years or less from the end of the fiscal year in which
25.19the certificates are issued. The maximum principal amount of the certificates that it may
25.20issue in a fiscal year is limited to the expected reduction in receipts plus the cost of
25.21issuance. The certificates may be issued in the manner and on the terms the governing
25.22body determines by resolution.
25.23(b) The governing body of the local government shall levy taxes for the payment of
25.24principal and interest on the certificates in accordance with section 475.61.
25.25(c) The certificates are not to be included in the net debt of the issuing local
25.26government.
25.27    (d) To the extent that a local government issues certificates under this section to fund
25.28an unallotment or other reduction in its state aid, the local government may not use a
25.29special levy for the aid reduction under section 275.70, subdivision 5, clause (22), or a
25.30similar or successor provision. This provision does not affect the status of the levy under
25.31section 475.61 to pay the certificates as a levy that is not subject to levy limits.
25.32(e) For purposes of this section, the following terms have the meanings given:
25.33(1) "Local government" means a statutory or home rule charter city, a town, or
25.34a county.
25.35(2) "Receipts" includes the following amounts scheduled to be received by the
25.36local government for the fiscal year from:
26.1(i) taxes;
26.2(ii) aid payments previously certified by the state to be paid to the local government;
26.3(iii) state reimbursement payments for property tax credits; and
26.4(iv) any other source.
26.5EFFECTIVE DATE.This section is effective the day following final enactment.

26.6    Sec. 38. Laws 1971, chapter 773, section 1, subdivision 2, as amended by Laws 1974,
26.7chapter 351, section 5, Laws 1976, chapter 234, sections 1 and 7, Laws 1978, chapter 788,
26.8section 1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, Laws
26.91988, chapter 513, section 1, Laws 1992, chapter 511, article 9, section 23, Laws 1998,
26.10chapter 389, article 3, section 27, and Laws 2002, chapter 390, section 23, is amended to
26.11read:
26.12    Subd. 2. For In each of the years 2003 to 2013 year, the city of St. Paul is authorized
26.13to issue bonds in the aggregate principal amount of $20,000,000 for each year.
26.14EFFECTIVE DATE.This section is effective upon compliance by the city with the
26.15requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3.

26.16    Sec. 39. Laws 1971, chapter 773, section 4, as amended by Laws 1976, chapter 234,
26.17section 2, is amended to read:
26.18Sec. 4. No proceeds of any bonds issued pursuant to section 1 hereof shall be
26.19expended for the construction or equipment of any portion of the St. Paul auditorium or
26.20civic center connected thereto; nor shall any such proceeds be expended for the acquisition
26.21or betterment of the building known as the Lowry Medical Arts Annex. All bonds issued
26.22under this act shall mature at any time or times within ten, or for bonds for public
26.23buildings or parking structures 30, years from the date of issue.
26.24EFFECTIVE DATE.This section is effective upon compliance by the city of St.
26.25Paul with the requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3.

26.26    Sec. 40. ST. PAUL PORT AUTHORITY CREDIT.
26.27Notwithstanding Minnesota Statutes, section 474A.061, subdivision 4, the
26.28commissioner of finance shall apply the $31,800 deposit paid in 2008 for a proposed issue
26.29of $1,590,000 in tax exempt bonds by the St. Paul Port Authority for District Cooling
26.30St. Paul, Inc. to an application for an allocation of tax exempt bonds by the St. Paul Port
26.31Authority for the same project.
26.32EFFECTIVE DATE.This section is effective the day following final enactment
26.33and expires January 1, 2011.

27.1    Sec. 41. MINNESOTA EVENT DISTRICT EXPANSION, PHASE I.
27.2The city of St. Paul may issue up to $40,000,000 of general obligation or special
27.3revenue bonds to finance the design, acquisition, construction, and equipping of a public
27.4community ice facility to be located within the block 39/arena tax increment district.
27.5The city may pledge, or use to pay the bonds, any money available to the city or its
27.6housing and redevelopment authority, including but not limited to any revenue derived
27.7from the project. The estimated collection of the pledged money may be deducted from
27.8any general ad valorem taxes otherwise required to be levied before issuance of general
27.9obligation bonds under Minnesota Statutes, section 475.61, subdivision 1. The bonds may
27.10be issued in one or more series and sold without election on the question of issuance of
27.11the bonds or the levy of a property tax to pay the bonds. Except as otherwise provided
27.12in this section, the bonds must be issued, sold, and secured in the manner provided in
27.13Minnesota Statutes, chapter 475.
27.14EFFECTIVE DATE.This section is effective the day after the governing body of
27.15the city of St. Paul and its chief clerical officer timely complete their compliance with
27.16Minnesota Statutes, section 645.021, subdivisions 2 and 3.

27.17    Sec. 42. CHISAGO CITY AND LINDSTROM JOINT VENTURE.
27.18Any two or more of the cities of Chisago City and Lindstrom, their economic
27.19development authorities, housing and redevelopment authorities, and the county of
27.20Chisago may enter into a joint powers agreement to acquire and develop or redevelop a
27.21business park in the city of Chisago City or Lindstrom. Any party to the agreement may
27.22spend money or issue debt for all or a part of the project, regardless of whether the project
27.23is located within its corporate boundaries. Issuance of debt under this section is subject to
27.24Minnesota Statutes, chapter 475, except that an election is not required. The agreement
27.25may provide for the parties to share revenues from the project. Any party to the agreement
27.26may levy taxes or spend its funds, as otherwise permitted by law, to pay for the project,
27.27including debt issued to finance the project.
27.28If the project is included in a tax increment financing district, each city and authority
27.29that is a party to the agreement may treat the tax increment financing district as being
27.30located within its corporate boundaries for purposes of the authority under the tax
27.31increment financing act, Minnesota Statutes, sections 469.174 to 469.1799, to spend
27.32increments or issue bonds for the project.
27.33EFFECTIVE DATE.This section is effective the day following final enactment.

28.1    Sec. 43. MOUNTAIN IRON ECONOMIC DEVELOPMENT AUTHORITY;
28.2WIND ENERGY PROJECT.
28.3(a) The Mountain Iron economic development authority may form or become a
28.4member of a limited liability company organized under Minnesota Statutes, chapter 322B,
28.5for the purpose of developing a community-based energy development project pursuant
28.6to Minnesota Statutes, section 216B.1612. A limited liability company formed or joined
28.7under this section is subject to the open meeting requirements established in Minnesota
28.8Statutes, chapter 13D. A project authorized by this section may not sell, transmit, or
28.9distribute the electrical energy at retail or provide for end use of the electricity to an
28.10off-site facility of the economic development corporation or the limited liability company.
28.11Nothing in this section modifies the exclusive service territories or exclusive right to serve
28.12as provided in Minnesota Statutes, sections 216B.37 to 216B.43.
28.13(b) The authority may acquire a leasehold interest in property outside its corporate
28.14boundaries for the purpose of developing a community-based energy development project
28.15as provided in Minnesota Statutes, section 216B.1612.
28.16EFFECTIVE DATE.This section is effective the day after the city of Mountain
28.17Iron and its chief clerical officer comply with Minnesota Statutes, section 645.021,
28.18subdivisions 2 and 3.

28.19    Sec. 44. WINONA COUNTY ECONOMIC DEVELOPMENT AUTHORITY;
28.20WIND ENERGY PROJECT.
28.21(a) The Winona County economic development authority may form or become a
28.22member of a limited liability company organized under Minnesota Statutes, chapter 322B,
28.23for the purpose of developing a community-based energy development project pursuant
28.24to Minnesota Statutes, section 216B.1612. A limited liability company formed or joined
28.25under this section is subject to the open meeting requirements established in Minnesota
28.26Statutes, chapter 13D. A project authorized by this section may not sell, transmit, or
28.27distribute the electrical energy at retail or provide for end use of the electrical energy to an
28.28off-site facility of the economic development authority or the limited liability company.
28.29Nothing in this section modifies the exclusive service territories or exclusive right to serve
28.30as provided in Minnesota Statutes, sections 216B.37 to 216B.43.
28.31(b) The authority may acquire a leasehold interest in property outside its corporate
28.32boundaries for the purpose of developing a community-based energy development project
28.33as provided in Minnesota Statutes, section 216B.1612.
29.1EFFECTIVE DATE.This section is effective the day after the county of Winona
29.2and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
29.32 and 3.

29.4    Sec. 45. REPEALER.
29.5Minnesota Statutes 2008, section 37.31, subdivision 8, is repealed.

29.6    Sec. 46. EFFECTIVE DATE.
29.7Unless otherwise provided, the sections of this act are effective the day following
29.8final enactment."
29.9Delete the title and insert:
29.11relating to public finance; providing terms and conditions relating to issuance of
29.12obligations and financing of public improvements; modifying restrictions on mail
29.13elections; providing tax credit and interest subsidy bonds; providing emergency
29.14debt certificates; authorizing the issuance of local bonds; authorizing the cities of
29.15Chisago City and Lindstrom to establish a joint venture, issue debt for use outside
29.16of the jurisdiction, and share revenues; providing for the additional financing of
29.17metropolitan area transit and paratransit capital expenditures; authorizing the
29.18issuance of certain obligations; authorizing counties to make joint purchases of
29.19energy and energy generation projects; authorizing Mountain Iron economic
29.20development and Winona County economic authorities to form limited liability
29.21companies; eliminating the maximum limit on state agricultural society's bonded
29.22debt and the sunset on the authority to issue bonds and modifying its authorized
29.23investments of debt service funds; modifying authority of municipalities to
29.24issue bonds for certain post employment benefits;amending Minnesota Statutes
29.252008, sections 37.31, subdivisions 1, 7; 37.33, subdivision 3; 37.34; 126C.55,
29.26subdivision 4; 204B.46; 275.065, subdivision 6; 360.036, subdivision 2;
29.27366.095, subdivision 1; 373.01, subdivision 3; 373.40, subdivision 1; 373.47,
29.28subdivision 1; 373.48, by adding a subdivision; 383B.117, subdivision 2; 410.32;
29.29412.301; 428A.03, subdivision 1; 428A.08; 428A.09; 428A.10; 428A.101;
29.30428A.21; 446A.086, by adding a subdivision; 469.005, subdivision 1; 469.034,
29.31subdivision 2; 469.153, subdivision 2; 471.191, subdivision 1; 473.1293, by
29.32adding a subdivision; 473.39, by adding a subdivision; 474A.02, subdivisions 2,
29.3314; 475.51, subdivision 4; 475.52, subdivision 6; 475.58, subdivision 1; 475.67,
29.34subdivision 8; Laws 1971, chapter 773, sections 1, subdivision 2, as amended; 4,
29.35as amended; proposing coding for new law in Minnesota Statutes, chapters 16A;
29.36475; repealing Minnesota Statutes 2008, section 37.31, subdivision 8."