Laws of Minnesota 1989 

                        CHAPTER 355-S.F.No. 1582 
           An act relating to public finance; providing 
          conditions and requirements for the issuance of debt; 
          amending Minnesota Statutes 1988, sections 298.2211, 
          subdivision 4; 400.101; 469.015, subdivision 4; 
          469.152; 469.153, subdivision 2; 469.154, subdivisions 
          3 and 5; 469.155, subdivisions 2, 3, and 5; 471.56, 
          subdivision 5; 473.541, by adding a subdivision; 
          473.811, subdivision 2; 475.51, by adding 
          subdivisions; 475.54, subdivision 4, and by adding a 
          subdivision; 475.55, subdivision 6, and by adding a 
          subdivision; 475.60, subdivisions 1, 2, and 3; and 
          475.79; proposing coding for new law in Minnesota 
          Statutes, chapter 473. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1988, section 298.2211, 
subdivision 4, is amended to read: 
    Subd. 4.  [OBLIGATIONS NOT STATE DEBT.] Bonds and other 
obligations issued by the commissioner pursuant to this section, 
along with all related documents, are not general obligations of 
the state of Minnesota and are not subject to section 16B.06.  
The full faith and credit and taxing powers of the state are not 
and may not be pledged for the payment of these bonds or other 
obligations, and no person has the right to compel the levy of 
any state tax for their payment or to compel the appropriation 
of any moneys of the state for their payment except as 
specifically provided herein.  These bonds and obligations shall 
be payable solely from the property and moneys derived by the 
commissioner pursuant to the authority granted in this section 
that the commissioner pledges to their payment.  All these bonds 
or other obligations must contain the provisions of this 
subdivision or words to the same effect on their face.  
    Sec. 2.  Minnesota Statutes 1988, section 400.101, is 
amended to read: 
    400.101 [BONDS.] 
    The county, by resolution, may authorize the issuance of 
bonds to provide funds for the acquisition or betterment of 
solid waste facilities, closure, postclosure and contingency 
costs, related transmission facilities, or property or property 
rights for the facilities, for improvements of a capital nature 
to respond responses, as defined in section 115B.02, to releases 
from closed solid waste facilities, or for refunding any 
outstanding bonds issued for any such purpose, and may pledge to 
the payment of the bonds and the interest thereon, its full 
faith, credit, and taxing powers, or the proceeds of any 
designated tax levies, or the gross or net revenues or charges 
to be derived from any facility operated by or for the county, 
or any combination thereof.  The proceeds of bonds issued under 
this section for closure, postclosure, and contingency costs and 
noncapital responses to releases may be used only for solid 
waste facilities in existence on May 15, 1989.  Except as 
otherwise provided in this section, the bonds must be issued and 
sold in accordance with the provisions of chapter 475.  The 
proceeds of the bonds may be used in part to establish a reserve 
as further security for the payment of the principal and 
interest of the bonds when due.  Revenue Bonds issued under this 
section may be sold at public or private sale upon conditions 
that the county board determines, but any bonds issued after May 
22, 1991, to which the full faith and credit and taxing powers 
of the county are pledged must be sold in accordance with the 
provisions of chapter 475.  No election is required to authorize 
the issuance of bonds under this section. 
    Sec. 3.  Minnesota Statutes 1988, section 469.015, 
subdivision 4, is amended to read: 
     Subd. 4.  [EXCEPTION; CERTAIN PROJECTS EXCEPTIONS.] (a) An 
authority need not require either competitive bidding or 
performance bonds in the following circumstances:  
    (1) in the case of a contract for the acquisition of a low 
rent housing project: 
    (i) for which financial assistance is provided by the 
federal government, and; 
    (ii) which does not require any direct loan or grant of 
money from the municipality as a condition of the federal 
financial assistance,; and 
    (iii) where for which the contract provides for the 
construction of such a the project upon land not owned by the 
authority at the time of the contract, or owned by the authority 
for redevelopment purposes, and provides for the conveyance or 
lease to the authority of the project or improvements upon 
completion of construction.  In exercising, pursuant to any 
general or special law, any power under this chapter, an 
authority need not require competitive bidding; 
    (2) with respect to a structured parking facility:  
    (i) constructed in conjunction with, and directly above or 
below, a development; and 
    (ii) financed with the proceeds of tax increment or parking 
ramp revenue bonds.  An authority need not require competitive 
bidding; and 
    (3) in the case of a housing development project that if: 
    (1) (i) the project is financed with the proceeds of 
bonds secured by the project and to which the full faith and 
credit of the authority is not pledged issued under section 
469.034; 
    (2) (ii) the project is located on land that is not owned 
by the authority at the time the contract is entered into, or is 
owned by the authority only for development purposes, and 
provides for conveyance or lease to the authority of the project 
or improvements upon completion of construction; and 
    (3) is constructed or rehabilitated under agreements with a 
developer for the construction of the project, guarantee of the 
bonds, and management of the property; and (4) is found by the 
authority to require negotiation rather than use of a 
competitive bidding procedure 
    (iii) the authority finds and determines that elimination 
of the public bidding requirements is necessary in order for the 
housing development project to be economical and feasible. 
    (b) An authority need not require a performance bond in the 
case of a contract described in paragraph (a), clause (1). 
    Sec. 4.  Minnesota Statutes 1988, section 469.152, is 
amended to read: 
     469.152 [PURPOSES.] 
     The welfare of the state requires the active promotion, 
attraction, encouragement, and development of economically sound 
industry and commerce through governmental action for the 
purpose of preventing the emergence of blighted and marginal 
lands and areas of chronic unemployment.  It is the policy of 
the state to facilitate and encourage action by local government 
units to prevent the economic deterioration of such areas to the 
point where the process can be reversed only by total 
redevelopment through the use of local, state, and federal funds 
derived from taxation, necessitating relocating displaced 
persons and duplicating public services in other areas.  By the 
use of the powers and procedures described in sections 469.152 
to 469.165, local government units and their agencies and 
authorities responsible for redevelopment and economic 
development may prevent occurrence of conditions requiring 
redevelopment, or aid in the redevelopment of existing areas of 
blight, marginal land, and avoidance of substantial and 
persistent unemployment.  
     The welfare of the state further requires the provision of 
necessary health care facilities, so that adequate health care 
services are available to residents of the state at reasonable 
cost.  The welfare of the state further requires the provision 
of county jail facilities for the purpose of providing 
adequately for the care, control, and safeguarding of civil 
rights of prisoners.  The welfare of the state requires that, 
whenever feasible, employment opportunities made available in 
part by sections 469.152 to 469.165 or other state law providing 
for similar financing mechanisms should be offered to 
individuals who are unemployed or who are economically 
disadvantaged.  
    The welfare of the state further requires that, whenever 
feasible, action should be taken to reduce the cost of borrowing 
by local governments for public purposes. 
    Sec. 5.  Minnesota Statutes 1988, section 469.153, 
subdivision 2, is amended to read: 
     Subd. 2.  [PROJECT.] (a) "Project" means (1) any 
properties, real or personal, used or useful in connection with 
a revenue producing enterprise, or any combination of two or 
more such enterprises engaged or to be engaged in generating, 
transmitting, or distributing electricity, assembling, 
fabricating, manufacturing, mixing, processing, storing, 
warehousing, or distributing any products of agriculture, 
forestry, mining, or manufacture, or in research and development 
activity in this field; (2) any properties, real or personal, 
used or useful in the abatement or control of noise, air or 
water pollution, or in the disposal of solid wastes, in 
connection with a revenue producing enterprise, or any 
combination of two or more such enterprises engaged or to be 
engaged in any business or industry; (3) any properties, real or 
personal, used or useful in connection with the business of 
telephonic communications, conducted or to be conducted by a 
telephone company, including toll lines, poles, cables, 
switching and other electronic equipment and administrative, 
data processing, garage and research and development facilities; 
(4) any properties, real or personal, used or useful in 
connection with a district heating system, consisting of the use 
of one or more energy conversion facilities to produce hot water 
or steam for distribution to homes and businesses, including 
cogeneration facilities, distribution lines, service facilities 
and retrofit facilities for modifying the user's heating or 
water system to use the heat energy converted from the steam or 
hot water.  
     (b) "Project" also includes any properties, real or 
personal, used or useful in connection with a revenue producing 
enterprise, or any combination of two or more such enterprises 
engaged in any business. 
      (c) "Project" also includes any properties, real or 
personal, used or useful for the promotion of tourism in the 
state.  Properties may include hotels, motels, lodges, resorts, 
recreational facilities of the type that may be acquired under 
section 471.191, and related facilities.  
     (d) "Project" also includes any properties, real or 
personal, used or useful in connection with a revenue producing 
enterprise, whether or not operated for profit, engaged in 
providing health care services, including hospitals, nursing 
homes, and related medical facilities. 
      (e) "Project" does not include any property to be sold or 
to be affixed to or consumed in the production of property for 
sale, and does not include any housing facility to be rented or 
used as a permanent residence.  
     (f) "Project" also means the activities of any revenue 
producing enterprise involving the construction, fabrication, 
sale, or leasing of equipment or products to be used in 
gathering, processing, generating, transmitting, or distributing 
solar, wind, geothermal, biomass, agricultural or forestry 
energy crops, or other alternative energy sources for use by any 
person or any residential, commercial, industrial, or 
governmental entity in heating, cooling, or otherwise providing 
energy for a facility owned or operated by that person or entity.
     (g) "Project" also includes any properties, real or 
personal, used or useful in connection with a county jail or 
county regional jail, the plans for which are approved by the 
commissioner of corrections; provided that the provisions of 
section 469.155, subdivisions 7 and 13, do not apply to those 
projects. 
     (h) "Project" also includes any real properties used or 
useful in furtherance of the purposes and policies of sections 
469.135 to 469.141.  
     (i) "Project" also includes related facilities as defined 
by section 471A.02, subdivision 11. 
    (j) "Project" also includes an undertaking to purchase the 
obligations of local governments located in whole or in part 
within the boundaries of the municipality that are issued or to 
be issued for public purposes.  
    Sec. 6.  Minnesota Statutes 1988, section 469.154, 
subdivision 3, is amended to read: 
    Subd. 3.  [CONDITIONS; APPROVAL.] No municipality or 
redevelopment agency shall undertake any project authorized by 
sections 469.152 to 469.165, except a project referred to in 
section 469.153, subdivision 2, paragraph (g) or (j), unless its 
governing body finds that the project furthers the purposes 
stated in section 469.152, nor until the commissioner has 
approved the project, on the basis of preliminary information 
the commissioner requires, as tending to further the purposes 
and policies of sections 469.152 to 469.165.  The commissioner 
may not approve any projects relating to health care facilities 
except as permitted under subdivision 6.  Approval shall not be 
deemed to be an approval by the commissioner or the state of the 
feasibility of the project or the terms of the revenue agreement 
to be executed or the bonds to be issued therefor, and the 
commissioner shall state this in communicating approval. 
    Sec. 7.  Minnesota Statutes 1988, section 469.154, 
subdivision 5, is amended to read: 
    Subd. 5.  [INFORMATION TO ENERGY AND ECONOMIC DEVELOPMENT 
AUTHORITY.] Each municipality and redevelopment agency upon 
entering into a revenue agreement, except one pertaining to a 
project referred to in section 469.153, subdivision 2, paragraph 
(g) or (j), shall furnish the energy and economic development 
authority on forms the authority prescribes the following 
information concerning the project:  The name of the contracting 
party, the nature of the enterprise, the location, approximate 
number of employees, the general terms and nature of the revenue 
agreement, the amount of bonds or notes issued, and other 
information the energy and economic development authority deems 
advisable.  The energy and economic development authority shall 
keep a record of the information which shall be available to the 
public at times the authority prescribes. 
    Sec. 8.  Minnesota Statutes 1988, section 469.155, 
subdivision 2, is amended to read: 
     Subd. 2.  [PROJECT ACQUISITION.] It may acquire, construct, 
and hold any lands, buildings, easements, water and air rights, 
improvements to lands and buildings, and capital equipment to be 
located permanently or used exclusively on a designated site and 
solid waste disposal and pollution control equipment, and 
alternative energy equipment and inventory, regardless of where 
located, that are deemed necessary in connection with a project 
to be situated within the state, and construct, reconstruct, 
improve, better, and extend the project.  It may also pay part 
or all of the cost of an acquisition and construction by a 
contracting party under a revenue agreement.  
    In the case of a project described in section 469.153, 
subdivision 2, paragraph (j), it may purchase obligations issued 
by a local unit of government that is located in whole or in 
part within the boundaries of the municipality at public sale, 
or at private sale if the obligations may be sold in that manner 
under the law authorizing their issuance.  The obligations must 
be issued under a capital improvement plan or program of at 
least five years. 
    Sec. 9.  Minnesota Statutes 1988, section 469.155, 
subdivision 3, is amended to read: 
    Subd. 3.  [REVENUE BONDS.] (a) It may issue revenue bonds, 
in anticipation of the collection of revenues of a project to be 
situated within the state, to finance, in whole or in part, the 
cost of the acquisition, construction, reconstruction, 
improvement, betterment, or extension thereof.  
    (b) It may issue revenue bonds to purchase the obligations 
of local government units located in whole or in part within the 
boundaries of the municipality.  The proceeds of bonds issued to 
purchase obligations as provided under this paragraph may be 
disbursed or otherwise used to pay underwriter's or placement 
fees, expenses, or other costs of issuance and sale for the 
bonds only on a pro rata basis determined with respect to the 
portion of the proceeds that are used to purchase the 
obligations.  The municipality may not pay the underwriter's or 
placement fees, expenses or other costs of issuance and sale out 
of other money. 
    Sec. 10.  Minnesota Statutes 1988, section 469.155, 
subdivision 5, is amended to read: 
    Subd. 5.  [REVENUE AGREEMENTS.] It may enter into a revenue 
agreement with any person, firm, or public or private 
corporation or federal or state governmental subdivision or 
agency so that payments required thereby to be made by the 
contracting party are fixed and revised as necessary to produce 
income and revenue sufficient to provide for the prompt payment 
of principal of and interest on all bonds issued hereunder when 
due.  The revenue agreement must also provide that the 
contracting party is required to pay all expenses of the 
operation and maintenance of the project including adequate 
insurance thereon and insurance against all liability for injury 
to persons or property arising from its operation, and all taxes 
and special assessments levied upon or with respect to the 
project and payable during the term of the revenue agreement.  
During the term of the revenue agreement, except as provided in 
subdivision 17, a tax shall be imposed and collected upon the 
project or, pursuant to the provisions of section 272.01, 
subdivision 2, for the privilege of using and possessing the 
project, in the same amount and to the same extent as though the 
contracting party were the owner of all real and personal 
property comprising the project.  No revenue agreement is 
required in connection with a project described in section 
469.153, subdivision 2, paragraph (j). 
    Sec. 11.  Minnesota Statutes 1988, section 471.56, 
subdivision 5, is amended to read: 
    Subd. 5.  In addition to other authority granted by this 
section, a county containing a city of the first class, a 
statutory or home rule charter city of the first or second 
class, and a metropolitan commission agency, as defined in 
section 473.121, may: 
    (1) sell futures contracts but only with respect to 
securities owned by it, including securities which are the 
subject of reverse repurchase agreements under section 475.76 
which expire at or before the due date of the futures contract.; 
and 
    (2) enter into option agreements to buy or sell securities 
described in section 475.66, subdivision 3, clause (a) but only 
with respect to securities owned by it, including securities 
which are the subject of reverse repurchase agreements under 
section 475.76 which expire at or before the due date of the 
option agreement.  
    Sec. 12.  [473.132] [SHORT-TERM INDEBTEDNESS.] 
    The council may issue certificates of indebtedness or 
capital notes to purchase equipment to be owned and used by the 
council and having an expected useful life of at least as long 
as the terms of the certificates or notes.  The certificates or 
notes shall be payable in not more than five years and shall be 
issued on such terms and in such manner as the council may 
determine, and for this purpose the council may secure payment 
of the certificates or notes by resolution or by trust indenture 
entered into by the council with a corporate trustee within or 
outside the state, and by a mortgage in the equipment financed.  
The total principal amount of the notes or certificates issued 
in a fiscal year should not exceed one-half of one percent of 
the tax capacity of the metropolitan area for that year.  The 
full faith and credit of the council shall be pledged to the 
payment of the certificates or notes, and a tax levy shall be 
made for the payment of the principal and interest on the 
certificates or notes, in accordance with section 475.61, as in 
the case of bonds issued by a municipality.  The tax levy 
authorized by this section must be deducted from the amount of 
taxes the council is otherwise authorized to levy under section 
473.249. 
    Sec. 13.  Minnesota Statutes 1988, section 473.541, is 
amended by adding a subdivision to read: 
    Subd. 4.  [REVENUE BONDS.] (a) The council may, by 
resolution, authorize the issuance of revenue bonds for any 
purpose for which general obligation bonds may be issued under 
subdivision 3.  The bonds shall be sold, issued, and secured in 
the manner provided in chapter 475 for bonds payable solely from 
revenues, except as otherwise provided in this subdivision, and 
the council shall have the same powers and duties as a 
municipality and its governing body in issuing bonds under that 
chapter.  The bonds shall be payable from and secured by a 
pledge of all or any part of revenues receivable under section 
473.517, shall not, and shall state they do not, represent or 
constitute a general obligation or debt of the council, and 
shall not be included in the net debt of any city, county, or 
other subdivision of the state for the purpose of any net debt 
limitation.  The proceeds of the bonds may be used to pay credit 
enhancement fees.  
    (b) The bonds may be secured by a bond resolution, or a 
trust indenture entered into by the council with a corporate 
trustee within or outside the state, which shall define the 
revenues and bond proceeds pledged for the payment and security 
of the bonds.  The pledge shall be a valid charge on the 
revenues received under section 473.517.  No mortgage of or 
security interest in any tangible real or personal property 
shall be granted to the bondholders or the trustee, but they 
shall have a valid security interest in the revenues and bond 
proceeds received by the council and pledged to the payment of 
the bonds as against the claims of all persons in tort, 
contract, or otherwise, irrespective of whether such parties 
have notice thereof and without possession or filing as provided 
in the uniform commercial code or any other law, subject, 
however, to the rights of the holders of any general obligation 
bonds issued under subdivision 3.  In the bond resolution or 
trust indenture, the council may make such covenants as it 
determines to be reasonable for the protection of the 
bondholders, including a covenant to issue general obligation 
bonds to refund the revenue bonds if and to the extent required 
to pay principal and interest on the bonds and to certify a 
deficiency tax levy as provided in section 473.521, subdivision 
4.  
    (c) Neither the council, nor any council member, officer, 
employee, or agent of the council, nor any person executing the 
bonds shall be liable personally on the bonds by reason of their 
issuance.  The bonds shall not be payable from nor a charge upon 
any funds other than the revenues and bond proceeds pledged to 
the payment thereof, nor shall the council be subject to any 
liability thereon or have the power to obligate itself to pay or 
to pay the bonds from funds other than the revenues and bond 
proceeds pledged, and no holder or holders of bonds shall ever 
have the right to compel any exercise of the taxing power of the 
council (except any deficiency tax levy the council covenants to 
certify under section 473.521, subdivision 4) or any other 
public body, to the payment of principal of or interest on the 
bonds, nor to enforce payment thereof against any property of 
the council or other public body other than that expressly 
pledged for the payment thereof.  
    Sec. 14.  Minnesota Statutes 1988, section 473.811, 
subdivision 2, is amended to read: 
    Subd. 2.  [COUNTY FINANCING OF FACILITIES.] Each 
metropolitan county may by resolution authorize the issuance of 
bonds to provide funds for the acquisition or betterment of 
solid waste facilities, closure, postclosure and contingency 
costs, related transmission facilities, or property or property 
rights for the facilities, for improvements of a capital nature 
to respond responses, as defined in section 115B.02, to releases 
from closed solid waste facilities, or for refunding any 
outstanding bonds issued for any such purpose.  The proceeds of 
bonds issued under this section for closure, postclosure, and 
contingency costs and noncapital responses to releases may be 
used only for solid waste facilities in existence on May 15, 
1989.  The county may pledge to the payment of the bonds and the 
interest thereon, its full faith, credit and taxing powers, or 
the proceeds of any designated tax levies, or the gross or net 
revenues or charges to be derived from any facility operated by 
or for the county, or any combination thereof.  Taxes levied for 
the payment of the bonds and interest shall not reduce the 
amounts of other taxes which the county is authorized by law to 
levy.  The proceeds of the bonds may be used in part to 
establish a reserve as further security for the payment of the 
principal and interest of the bonds when due.  Revenue Bonds 
issued pursuant to this section may be sold at public or private 
sale upon such conditions as the county board shall determine, 
but any bonds issued after May 22, 1991, to which the full faith 
and credit and taxing powers of the county are pledged shall be 
sold in accordance with the provisions of chapter 475.  No 
election shall be required to authorize the issuance of the 
bonds. Except as otherwise provided, the bonds shall be issued 
and sold in accordance with the provisions of chapter 475. 
    Sec. 15.  Minnesota Statutes 1988, section 475.51, is 
amended by adding a subdivision to read: 
    Subd. 13.  [OTHER GOVERNMENTAL UNIT.] "Other governmental 
unit" means any public corporation, authority, governmental 
unit, or other political subdivision of the state of Minnesota 
that is not a municipality.  
     Sec. 16.  Minnesota Statutes 1988, section 475.51, is 
amended by adding a subdivision to read: 
    Subd. 14.  [BOND REINVESTMENT PROGRAM.] "Bond reinvestment 
program" means a program under which a municipality, either 
directly or through an agent employed for the purpose, offers 
and sells its obligations to the holders of other obligations of 
the municipality.  These offers and sales are directed at the 
reinvestment in new obligations of funds derived from maturing 
principal and interest and may also include offers and sales of 
additional newly issued obligations in addition to the 
reinvestment of principal and interest paid or to be paid on 
outstanding obligations and provision for the temporary 
investment of funds received for the purchase of new obligations 
in tax-exempt securities pending the issuance of the new 
obligations. 
    Sec. 17.  Minnesota Statutes 1988, section 475.54, 
subdivision 4, is amended to read: 
    Subd. 4.  [REDEMPTION.] Any obligation may be issued 
reserving the right of redemption and payment thereof prior to 
maturity, at par and accrued interest or at such premium and at 
such time or times as shall be determined by the governing 
body.  Notice of the call of any prepayable obligation shall be 
published in a daily or weekly periodical published in a 
Minnesota city of the first class, or its metropolitan area, 
which circulates throughout the state and furnishes financial 
news as a part of its service; provided that published notice of 
the call need not be given if the obligation is in registered 
form and notice has been mailed to the registered holder of the 
obligation.  When any such obligation has been validly called 
for redemption in accordance with its terms, and the principal 
thereof and all interest thereon to the date of redemption have 
been paid or deposited with the paying agent, interest thereon 
shall cease; provided that no obligation issued subsequent to 
July 1, 1967, shall be deemed validly called for redemption 
unless the notice herein required has been published or so 
mailed prior to the date fixed for its redemption.  If actual 
notice of the call has been given through a different means of 
communication, the holder of an obligation may waive published 
or mailed notice.  
     Sec. 18.  Minnesota Statutes 1988, section 475.54, is 
amended by adding a subdivision to read: 
    Subd. 6a.  [FOREIGN CURRENCY OBLIGATIONS.] Any obligation 
issued as part of a series in a principal amount of $25,000,000 
or more may be payable in currency other than currency of the 
United States if at the time of issue of the obligation the 
municipality enters into an agreement with a bank or dealer 
described in section 475.66, subdivision 1, that provides for 
payments to the municipality in the foreign currency at the 
times and in the amounts necessary to pay principal and interest 
on the obligations when due and payable in the foreign currency 
and corresponding payments by the municipality in United States 
currency of a determinate amount or amounts and at the times the 
agreement specifies.  For purposes of chapter 475, the 
outstanding amount of the municipality's obligations payable in 
a foreign currency is the principal component of all remaining 
payments to be made by the municipality in United States 
currency under the agreement and the amount or rate of interest 
on the obligations is the interest component of the payments.  
    Sec. 19.  Minnesota Statutes 1988, section 475.55, 
subdivision 6, is amended to read: 
    Subd. 6.  [REGISTRATION DATA PRIVATE.] All information 
contained in any register maintained by a municipality or by a 
corporate registrar with respect to the ownership of municipal 
obligations is nonpublic data as defined in section 13.02, 
subdivision 9, or private data on individuals as defined in 
section 13.02, subdivision 12.  The information is not public 
and is accessible only to the individual or entity that is the 
subject of it, except if disclosure:  
    (1) is necessary for the performance of the duties of the 
municipality or the registrar; 
    (2) is requested by an authorized representative of the 
state commissioner of revenue or attorney general or of the 
commissioner of internal revenue of the United States for the 
purpose of determining the applicability of a tax; 
    (3) is required under section 13.03, subdivision 4; or 
    (4) is requested at any time by the corporate trust 
department of a bank or trust company acting as a tender agent 
pursuant to documents executed at the time of issuance of the 
obligations to purchase obligations described in section 475.54, 
subdivision 5a, or obligations to which a tender option has been 
attached in connection with the performance of such person's 
duties as tender agent, or purchaser of the obligations. 
    A municipality or its agent may use the information in a 
register for purposes of offering obligations under a bond 
reinvestment program.  
    Sec. 20.  Minnesota Statutes 1988, section 475.55, is 
amended by adding a subdivision to read: 
    Subd. 8.  [BOND REINVESTMENT PROGRAMS.] In connection with 
a bond reinvestment program the governing body may by resolution 
delegate to any appropriate officer of the municipality 
authority to establish from time to time the interest rate or 
rates, subject to limitations imposed by law, on such 
obligations and other terms of obligations issued under a bond 
reinvestment program.  Obligations issued under a bond 
reinvestment program may be in any denomination as determined by 
the governing body or an officer acting pursuant to delegation 
from the governing body. 
    Sec. 21.  Minnesota Statutes 1988, section 475.60, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ADVERTISEMENT.] All obligations shall be 
negotiated and sold by the governing body, except when authority 
therefor is delegated by the governing body or by the charter of 
the municipality to a board, department, or officers of the 
municipality.  Except as provided in section 475.56, obligations 
shall be sold at not less than par value plus accrued interest 
to date of delivery.  Except as provided in subdivision 2 all 
obligations shall be sold at public sale after notice given at 
least ten days in advance by publication in a legal newspaper 
having general circulation in the municipality and ten days in 
advance by publication in a daily or weekly periodical, 
published in a Minnesota city of the first class, or its 
metropolitan area, which circulates throughout the state and 
furnishes financial news as a part of its service. 
    Sec. 22.  Minnesota Statutes 1988, section 475.60, 
subdivision 2, is amended to read: 
    Subd. 2.  [REQUIREMENTS WAIVED.] The requirements as to 
public sale shall not apply to: 
    (1) obligations issued under the provisions of a home rule 
charter or of a law specifically authorizing a different method 
of sale, or authorizing them to be issued in such manner or on 
such terms and conditions as the governing body may determine; 
    (2) obligations sold by an issuer in an amount not 
exceeding the total sum of $1,200,000 in any 12-month period; 
    (3) obligations issued by a governing body other than a 
school board in anticipation of the collection of taxes or other 
revenues appropriated for expenditure in a single year, if sold 
in accordance with the most favorable of two or more proposals 
solicited privately; 
    (4) obligations sold to any board, department, or agency of 
the United States of America or of the state of Minnesota, in 
accordance with rules or regulations promulgated by such board, 
department, or agency; 
    (5) obligations issued to fund pension and retirement fund 
liabilities under section 475.52, subdivision 6, obligations 
issued with tender options under section 475.54, subdivision 5a, 
crossover refunding obligations referred to in section 475.67, 
subdivision 13, and any issue of obligations comprised in whole 
or in part of obligations bearing interest at a rate or rates 
which vary periodically referred to in section 475.56; and 
    (6) obligations to be issued for a purpose, in a manner, 
and upon terms and conditions authorized by law, if the 
governing body of the municipality, on the advice of bond 
counsel or special tax counsel, determines that interest on the 
obligations cannot be represented to be excluded from gross 
income for purposes of federal income taxation.; 
    (7) obligations issued in the form of an installment 
purchase contract, lease purchase agreement, or other similar 
agreement; and 
      (8) obligations sold under a bond reinvestment program. 
    Sec. 23.  Minnesota Statutes 1988, section 475.60, 
subdivision 3, is amended to read: 
    Subd. 3.  [PUBLISHED NOTICE.] Published notice, where 
required, shall specify the maximum principal amount of the 
obligations, the place of receipt and consideration of bids and 
such other details as to the obligations and terms of sale as 
the governing body deems suitable.  The published notice shall 
either specify the date and time for receipt of bids or provide 
that the bids will be received at a date and time not less than 
ten nor more than 60 days after the date of publication.  If the 
published notice does not state the specific date or amount for 
the sale, it shall specify the manner in which notice of the 
date or amount of the sale will be given to prospective 
bidders.  Notification of prospective bidders shall be given by 
electronic data transmission or other form of communication 
common to the municipal bond trade at least four days (omitting 
Saturdays, Sundays, and legal holidays) before the date for 
receipt of bids.  If within five days after the date of 
publication a prospective bidder requests in writing to be 
notified by mail, the municipality shall do so.  Failure to give 
the notice as described in the preceding sentence to a bidder 
shall not affect the validity of the sale or of the 
obligations.  The governing body may employ an agent to receive 
and open the bids at any place within or outside the corporate 
limits of the municipality, in the presence of an officer of the 
municipality or the officer's designee, but the obligations 
shall not be sold except by action of the governing body or 
authorized officers of the municipality after communication of 
the bids to them.  Additional notice may be given for such time 
and in such manner as the governing body deems suitable.  At the 
time and place so fixed, the bids shall be opened and the offer 
complying with the terms of sale and deemed most favorable shall 
be accepted, but the governing body may reject any and all such 
offers, in which event, or if no offers have been received, it 
may award the obligations to any person who within 30 days 
thereafter presents an offer complying with the terms of sale 
and deemed more favorable than any received previously, or upon 
like notice the governing body may invite other bids upon the 
same or different terms and conditions, except that if the 
original published notice does not state the specific date or 
amount for the sale and if the material terms and conditions of 
the sale remain the same, except for the date and amount, notice 
of the date or amount may be given in the manner provided above. 
    Sec. 24.  Minnesota Statutes 1988, section 475.79, is 
amended to read: 
    475.79 [POWERS AVAILABLE TO OTHER POLITICAL SUBDIVISIONS.] 
    Any powers granted to a municipality under this chapter, 
other than the power to issue general obligation bonds and levy 
taxes, may be exercised by any other public corporation, 
authority, governmental unit, or other political subdivision of 
the state of Minnesota that is not a municipality.  This grant 
of authority does not limit the powers granted to an entity 
under any other law. 
    Sec. 25.  [APPLICATION.] 
    Sections 12, 13, and 15 apply in the counties of Anoka, 
Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.  
    Sec. 26.  [EFFECTIVE DATE.] 
    Sections 1 to 25 are effective the day following final 
enactment. 
    Presented to the governor May 30, 1989 
    Signed by the governor June 2, 1989, 12:18 p.m.