1.1.................... moves to amend H.F. No. 794 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2010, section 216C.435, subdivision 8, is amended to
1.4read:
1.5    Subd. 8. Qualifying real property. "Qualifying real property" means a
1.6single-family or multifamily residential dwelling, or a commercial or industrial building,
1.7that the implementing entity has determined, after review of an energy audit or renewable
1.8energy system feasibility study, can be benefited may experience increased energy
1.9efficiency by installation of energy improvements.

1.10    Sec. 2. Minnesota Statutes 2010, section 216C.436, subdivision 7, is amended to read:
1.11    Subd. 7. Repayment. An implementing entity that finances an energy improvement
1.12under this section must:
1.13(1) secure payment with a lien against the benefited qualifying real property; and
1.14(2) collect repayments as a special assessment as provided for in section 429.101
1.15or by charter, provided that special assessments may be made payable in up to twenty
1.16equal annual installments.
1.17If the implementing entity is an authority, the local government that authorized
1.18the authority to act as implementing entity shall impose and collect special assessments
1.19necessary to pay debt service on bonds issued by the implementing entity under
1.20subdivision 8, and shall transfer all collections of the assessments upon receipt to the
1.21authority.

1.22    Sec. 3. Minnesota Statutes 2010, section 216C.436, subdivision 8, is amended to read:
1.23    Subd. 8. Bond issuance; repayment. (a) An implementing entity may issue
1.24revenue bonds as provided in chapter 475 for the purposes of this section, provided that
1.25the revenue bonds must not be payable more than 20 years from the date of issuance.
2.1(b) The bonds must be payable as to both principal and interest solely from the
2.2revenues from the assessments established in subdivision 7.
2.3(c) No holder of bonds issued under this subdivision may compel any exercise of the
2.4taxing power of the implementing entity that issued the bonds to pay principal or interest
2.5on the bonds, and if the implementing entity is an authority, no holder of the bonds may
2.6compel any exercise of the taxing power of the local government. Bonds issued under
2.7this subdivision are not a debt or obligation of the issuer or any local government that
2.8issued them, nor is the payment of the bonds enforceable out of any money other than the
2.9revenue pledged to the payment of the bonds.

2.10    Sec. 4. Minnesota Statutes 2010, section 373.40, subdivision 1, is amended to read:
2.11    Subdivision 1. Definitions. For purposes of this section, the following terms have
2.12the meanings given.
2.13(a) "Bonds" means an obligation as defined under section 475.51.
2.14(b) "Capital improvement" means acquisition or betterment of public lands,
2.15buildings, or other improvements within the county for the purpose of a county courthouse,
2.16administrative building, health or social service facility, correctional facility, jail, law
2.17enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads
2.18and bridges, public works facilities, fairgrounds buildings, and records and data storage
2.19facilities and the acquisition of development rights in the form of conservation easements
2.20under chapter 84C. An improvement must have an expected useful life of five years or
2.21more to qualify. "Capital improvement" does not include a recreation or sports facility
2.22building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility,
2.23swimming pool, exercise room or health spa), unless the building is part of an outdoor
2.24park facility and is incidental to the primary purpose of outdoor recreation. For purposes
2.25of this section, "capital improvement" includes expenditures for purposes described in this
2.26paragraph that have been incurred by a county before approval of a capital improvement
2.27plan, if the expenditures are included in a capital improvement plan approved on or before
2.28the date of the public hearing under subdivision 2 regarding issuance of bonds for the
2.29expenditures.
2.30(c) "Metropolitan county" means a county located in the seven-county metropolitan
2.31area as defined in section 473.121 or a county with a population of 90,000 or more.
2.32(d) "Population" means the population established by the most recent of the
2.33following (determined as of the date the resolution authorizing the bonds was adopted):
2.34(1) the federal decennial census,
3.1(2) a special census conducted under contract by the United States Bureau of the
3.2Census, or
3.3(3) a population estimate made either by the Metropolitan Council or by the state
3.4demographer under section 4A.02.
3.5(e) "Qualified indoor ice arena" means a facility that meets the requirements of
3.6section 373.43.
3.7(f) "Tax capacity" means total taxable market value, but does not include captured
3.8market value.

3.9    Sec. 5. Minnesota Statutes 2010, section 373.40, subdivision 2, is amended to read:
3.10    Subd. 2. Application of election requirement. (a) Bonds issued by a county
3.11to finance capital improvements under an approved capital improvement plan are not
3.12subject to the election requirements of section 375.18 or 475.58. The bonds must be
3.13approved by vote of at least three-fifths of the members of the county board. In the case
3.14of a metropolitan county, the bonds must be approved by vote of at least two-thirds of
3.15the members of the county board.
3.16(b) Before issuance of bonds qualifying under this section, the county must publish
3.17a notice of its intention to issue the bonds and the date and time of a hearing to obtain
3.18public comment on the matter. The notice must be published in the official newspaper
3.19of the county or in a newspaper of general circulation in the county. The notice must be
3.20published at least 14 ten, but not more than 28, days before the date of the hearing.
3.21(c) A county may issue the bonds only upon obtaining the approval of a majority of
3.22the voters voting on the question of issuing the obligations, if a petition requesting a vote
3.23on the issuance is signed by voters equal to five percent of the votes cast in the county in
3.24the last county general election and is filed with the county auditor within 30 days after
3.25the public hearing. The commissioner of revenue shall prepare a suggested form of the
3.26question to be presented at the election. If the county elects not to submit the question to
3.27the voters, the county shall not propose the issuance of bonds under this section for the
3.28same purpose and in the same amount for a period of 365 days from the date of receipt
3.29of the petition. If the question of issuing the bonds is submitted and not approved by the
3.30voters, the provisions of section 475.58, subdivision 1a, apply.

3.31    Sec. 6. Minnesota Statutes 2010, section 373.40, subdivision 4, is amended to read:
3.32    Subd. 4. Limitations on amount. A county may not issue bonds under this section
3.33if the maximum amount of principal and interest to become due in any year on all the
3.34outstanding bonds issued pursuant to this section (including the bonds to be issued) will
4.1equal or exceed 0.12 percent of taxable market value of property in the county. Calculation
4.2of the limit must be made using the taxable market value for the taxes payable year in
4.3which the obligations are issued and sold, provided that, for purposes of determining
4.4the principal and interest due in any year, the county may deduct the amount of interest
4.5expected to be paid or reimbursed to the county by the federal government in that year on
4.6any outstanding bonds or the bonds to be issued. This section does not limit the authority
4.7to issue bonds under any other special or general law.

4.8    Sec. 7. Minnesota Statutes 2010, section 474A.02, subdivision 22b, is amended to read:
4.9    Subd. 22b. Public facilities project. "Public facilities project" means any publicly
4.10owned facility, or facility owned by a nonprofit organization that is used for district
4.11heating or cooling, that is eligible to be financed with the proceeds of public facilities
4.12bonds as defined under section 474A.02, subdivision 23a.

4.13    Sec. 8. Minnesota Statutes 2010, section 474A.02, subdivision 23a, is amended to read:
4.14    Subd. 23a. Qualified bonds. "Qualified bonds" means the specific type or types
4.15of obligations that are subject to the annual volume cap. Qualified bonds include the
4.16following types of obligations as defined in federal tax law:
4.17(a) "public facility bonds" means "exempt facility bonds" as defined in federal
4.18tax law, except for residential rental project bonds, which are those obligations issued
4.19to finance airports, docks and wharves, mass commuting facilities, facilities for the
4.20furnishing of water, sewage facilities, solid waste disposal facilities, facilities for the
4.21local furnishing of electric energy or gas, local district heating or cooling facilities, and
4.22qualified hazardous waste facilities. New bonds and other obligations are ineligible to
4.23receive state allocations or entitlement authority for public facility projects under this
4.24section if they have been issued:
4.25(1) for the purpose of refinancing, refunding, or otherwise defeasing existing debt;
4.26and
4.27(2) more than one calendar year prior to the date of application;
4.28(b) "residential rental project bonds" which are those obligations issued to finance
4.29qualified residential rental projects;
4.30(c) "mortgage bonds";
4.31(d) "small issue bonds" issued to finance manufacturing projects and the acquisition
4.32or improvement of agricultural real or personal property under sections 41C.01 to 41C.13;
4.33(e) "student loan bonds" issued by or on behalf of the Minnesota Office of Higher
4.34Education;
5.1(f) "redevelopment bonds";
5.2(g) "governmental bonds" with a nonqualified amount in excess of $15,000,000 as
5.3set forth in section 141(b)5 of federal tax law; and
5.4(h) "enterprise zone facility bonds" issued to finance facilities located within
5.5empowerment zones or enterprise communities, as authorized under Public Law 103-66,
5.6section 13301 section 1394 of the Internal Revenue Code.

5.7    Sec. 9. Minnesota Statutes 2010, section 475.521, subdivision 1, is amended to read:
5.8    Subdivision 1. Definitions. For purposes of this section, the following terms have
5.9the meanings given.
5.10(a) "Bonds" mean an obligation defined under section 475.51.
5.11(b) "Capital improvement" means acquisition or betterment of public lands,
5.12buildings or other improvements for the purpose of a city hall, town hall, library, public
5.13safety facility, and public works facility. An improvement must have an expected useful
5.14life of five years or more to qualify. Capital improvement does not include light rail transit
5.15or any activity related to it, or a park, road, bridge, administrative building other than a
5.16city or town hall, or land for any of those facilities. For purposes of this section, "capital
5.17improvement" includes expenditures for purposes described in this paragraph that have
5.18been incurred by a municipality before approval of a capital improvement plan, if the
5.19expenditures are included in a capital improvement plan approved on or before the date of
5.20the public hearing under subdivision 2 regarding issuance of bonds for the expenditures.
5.21(c) "Municipality" means a home rule charter or statutory city or a town described in
5.22section 368.01, subdivision 1 or 1a.

5.23    Sec. 10. Minnesota Statutes 2010, section 475.521, subdivision 2, is amended to read:
5.24    Subd. 2. Election requirement. (a) Bonds issued by a municipality to finance
5.25capital improvements under an approved capital improvements plan are not subject to the
5.26election requirements of section 475.58. The bonds must be approved by an affirmative
5.27vote of three-fifths of the members of a five-member governing body. In the case of a
5.28governing body having more or less than five members, the bonds must be approved by a
5.29vote of at least two-thirds of the members of the governing body.
5.30(b) Before the issuance of bonds qualifying under this section, the municipality must
5.31publish a notice of its intention to issue the bonds and the date and time of the hearing
5.32to obtain public comment on the matter. The notice must be published in the official
5.33newspaper of the municipality or in a newspaper of general circulation in the municipality.
5.34Additionally, the notice may be posted on the official Web site, if any, of the municipality.
6.1The notice must be published at least 14 ten but not more than 28 days before the date
6.2of the hearing.
6.3(c) A municipality may issue the bonds only after obtaining the approval of a
6.4majority of the voters voting on the question of issuing the obligations, if a petition
6.5requesting a vote on the issuance is signed by voters equal to five percent of the votes cast
6.6in the municipality in the last municipal general election and is filed with the clerk within
6.730 days after the public hearing. The commissioner of revenue shall prepare a suggested
6.8form of the question to be presented at the election. If the municipality elects not to submit
6.9the question to the voters, the municipality shall not propose the issuance of bonds under
6.10this section for the same purpose and in the same amount for a period of 365 days from the
6.11date of receipt of the petition. If the question of issuing the bonds is submitted and not
6.12approved by the voters, the provisions of section 475.58, subdivision 1a, apply.

6.13    Sec. 11. Minnesota Statutes 2010, section 475.521, subdivision 4, is amended to read:
6.14    Subd. 4. Limitations on amount. A municipality may not issue bonds under
6.15this section if the maximum amount of principal and interest to become due in any
6.16year on all the outstanding bonds issued under this section, including the bonds to be
6.17issued, will equal or exceed 0.16 percent of the taxable market value of property in the
6.18municipality. Calculation of the limit must be made using the taxable market value for
6.19the taxes payable year in which the obligations are issued and sold, provided that, for
6.20purposes of determining the principle and interest due in any year, the municipality may
6.21deduct the amount of interest expected to be paid or reimbursed to the municipality by the
6.22federal government in that year on any outstanding bonds or the bonds to be issued. In
6.23the case of a municipality with a population of 2,500 or more, the bonds are subject to
6.24the net debt limits under section 475.53. In the case of a shared facility in which more
6.25than one municipality participates, upon compliance by each participating municipality
6.26with the requirements of subdivision 2, the limitations in this subdivision and the net debt
6.27represented by the bonds shall be allocated to each participating municipality in proportion
6.28to its required financial contribution to the financing of the shared facility, as set forth in
6.29the joint powers agreement relating to the shared facility. This section does not limit the
6.30authority to issue bonds under any other special or general law.

6.31    Sec. 12. Minnesota Statutes 2010, section 475.58, subdivision 3b, is amended to read:
6.32    Subd. 3b. Street reconstruction. (a) A municipality may, without regard to
6.33the election requirement under subdivision 1, issue and sell obligations for street
6.34reconstruction, if the following conditions are met:
7.1    (1) the streets are reconstructed under a street reconstruction plan that describes the
7.2street reconstruction to be financed, the estimated costs, and any planned reconstruction
7.3of other streets in the municipality over the next five years, and the plan and issuance of
7.4the obligations has been approved by a vote of all of the members of the governing body
7.5present at the meeting following a public hearing for which notice has been published in
7.6the official newspaper at least ten days but not more than 28 days prior to the hearing; and
7.7    (2) if a petition requesting a vote on the issuance is signed by voters equal to
7.8five percent of the votes cast in the last municipal general election and is filed with the
7.9municipal clerk within 30 days of the public hearing, the municipality may issue the bonds
7.10only after obtaining the approval of a majority of the voters voting on the question of the
7.11issuance of the obligations. If the municipality elects not to submit the question to the
7.12voters, the municipality shall not propose the issuance of bonds under this section for the
7.13same purpose and in the same amount for a period of 365 days from the date of receipt
7.14of the petition. If the question of issuing the bonds is submitted and not approved by the
7.15voters, the provisions of subdivision 1a, apply.
7.16    (b) Obligations issued under this subdivision are subject to the debt limit of the
7.17municipality and are not excluded from net debt under section 475.51, subdivision 4.
7.18    (c) For purposes of this subdivision, street reconstruction includes utility
7.19replacement and relocation and other activities incidental to the street reconstruction, turn
7.20lanes and other improvements having a substantial public safety function, realignments,
7.21other modifications to intersect with state and county roads, and the local share of state
7.22and county road projects. For purposes of this subdivision, "street reconstruction"
7.23includes expenditures for street reconstruction that have been incurred by a municipality
7.24before approval of a street reconstruction plan, if the expenditures are included in a street
7.25reconstruction plan approved on or before the date of the public hearing under paragraph
7.26(a), clause (1), regarding issuance of bonds for the expenditures.
7.27    (d) Except in the case of turn lanes, safety improvements, realignments, intersection
7.28modifications, and the local share of state and county road projects, street reconstruction
7.29does not include the portion of project cost allocable to widening a street or adding curbs
7.30and gutters where none previously existed."