Who in 2005 said, "Give Away the Libraries?"

H.F. No. 1973, as introduced - 85th Legislative Session (2007-2008) Posted on Mar 12, 2007
1.1A bill for an act

1.2relating to local government; enabling the merger of the Minneapolis Public
1.3Library and the Hennepin County library system; authorizing the transfer of
1.4property, assets, and certain bond proceeds related to the Minneapolis Public
1.5Library to Hennepin County; authorizing the transfer of Minneapolis Public
1.6Library employees to Hennepin County;amending Minnesota Statutes 2006,
1.7sections 275.065, subdivision 3; 383B.237; 383B.239; 383B.245; 383B.247.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:



1.9ARTICLE 1

1.10LIBRARY MERGER


1.11 Section 1. PURPOSE AND PREEMPTION.
1.12This act enables the merger of the Minneapolis Public Library and the Hennepin
1.13County library system for the purpose of providing better service to the public, building
1.14on the respective strengths of the two systems and maximizing long-term operating
1.15efficiencies, service effectiveness and the advantages of new technology, and providing
1.16programs and services responsive to the diverse and changing needs and interests of all
1.17persons and communities served. This act supersedes any contrary Minnesota laws and
1.18provisions of the home rule charter and ordinances of the city of Minneapolis.

1.19 Sec. 2. DEFINITIONS.
1.20(a) For the purposes of this act, the terms defined in this section have the meanings
1.21given unless the context clearly indicates otherwise.
1.22(b) "Merger date" means the first day after certificates of local approval of this act
1.23have been filed by the Minneapolis Library Board, the city of Minneapolis, and Hennepin
2.1County in compliance with Minnesota Statutes, section 645.021, subdivision 3, and the
2.2transactional documents have been executed.
2.3(c) "Hennepin County library system" means the system of public libraries created
2.4and maintained by Hennepin County pursuant to Minnesota Statutes, sections 383B.237
2.5to 383B.245.
2.6(d) "Minneapolis Public Library" means the system of public libraries, including real
2.7property and assets, under the jurisdiction of the Minneapolis Public Library Board.
2.8(e) "Minneapolis Library Board" means the library board created in chapter 17,
2.9section 1, of the city of Minneapolis Charter.
2.10(f) "Transactional documents" means the agreements and documents needed to
2.11effectuate the efficient merger of the Minneapolis Public Library and the Hennepin County
2.12library system pursuant to this act.

2.13 Sec. 3. TRANSFER OF ASSETS.
2.14Notwithstanding any other law to the contrary, the Minneapolis Library Board and
2.15the city of Minneapolis may transfer to Hennepin County any and all of their interest in
2.16and rights and title to real property and assets of the Minneapolis Public Library for use in
2.17and for the benefit of the consolidated Hennepin County library system. The real property
2.18and assets include, but are not limited to, all buildings and land, leasehold interests, the
2.19full library collection, and all equipment, copyrights, trademarks, licenses, artwork,
2.20furnishings, and other personal property of the Minneapolis Library Board.

2.21 Sec. 4. MINNEAPOLIS CENTRAL LIBRARY PARKING RAMP.
2.22(a) Notwithstanding any other law to the contrary, the city of Minneapolis may
2.23transfer to Hennepin County all of its interest in and rights and title to the parking ramp
2.24attached to the Central Library of the Minneapolis Public Library.
2.25(b) After the transfer of the parking ramp, Hennepin County will have the right to
2.26operate, or contract to operate, and receive all revenues from the operation of the ramp.
2.27(c) The city of Minneapolis will continue to be responsible for any outstanding
2.28bonds or other debt instruments issued to fund construction of the parking ramp. Hennepin
2.29County must reimburse the city of Minneapolis in amounts equal to payments for
2.30principal and interest on the bonds or other debt instruments attributable to the debt for
2.31the construction of the ramp or redemption payments, according to terms agreed between
2.32the county and the city.

2.33 Sec. 5. TRANSFER OF EMPLOYEES.
3.1(a) All persons employed in a permanent position by the Minneapolis Library Board
3.2on the day before the merger date shall be transferred to the employment of Hennepin
3.3County on the merger date and be subject to the provisions of Minnesota Statutes,
3.4sections 383B.26 to 383B.457. The transfer of employees pursuant to this section does
3.5not constitute severance or termination of employment or a layoff entitling transferred
3.6employees to severance pay, termination benefits, a retirement plan refund, or any other
3.7right that may be applicable in the case of severance, termination, or layoff.
3.8(b) Employees transferred pursuant to this section shall be allocated by the Hennepin
3.9County Human Resources Director to a position in an appropriate classification within
3.10the county's classification system. Transferred employees who are classified into a
3.11Hennepin County job classification that is represented by an exclusive representative
3.12under Minnesota Statutes, chapter 179A, shall be assigned to the existing Hennepin
3.13County collective bargaining unit that represents the transferred employee's Hennepin
3.14County job classification.
3.15(c) Employees transferred pursuant to this section shall retain employment and
3.16accrued benefits and, for seniority purposes, their date of county employment will be
3.17recorded by the employee's most recent date of employment with the Minneapolis Library
3.18Board. "Accrued benefits" for the purposes of this section means the balance of accrued
3.19hours of vacation, sick leave, paid time off, compensatory time, and deferred holidays.

3.20 Sec. 6. MINNEAPOLIS EMPLOYEE RETIREMENT FUND PARTICIPANTS.
3.21Employees transferred to Hennepin County employment pursuant to section 5 who
3.22are members of the Minneapolis Employee Retirement Fund, under Minnesota Statutes,
3.23chapter 422A, on the day before the merger date may continue their participation in that
3.24retirement fund upon agreement between the city of Minneapolis and Hennepin County
3.25set out in the transactional documents that the city shall indemnify Hennepin County for
3.26any and all unfunded liabilities of the Minneapolis Employees Retirement Fund related
3.27to these transferring participants.

3.28 Sec. 7. EXISTING DEBT AND UNISSUED CAPITAL IMPROVEMENT
3.29BONDS.
3.30(a) The city of Minneapolis shall be solely responsible for payments on all bonds
3.31already issued that relate to the Minneapolis Public Library.
3.32(b) The city of Minneapolis shall issue bonds, as provided in the transactional
3.33documents, for the remaining balance of the sum authorized by the November 7, 2000,
3.34voter referendum to finance public library improvements, and bonds for library capital
4.1improvements contained in the city's capital improvement plans. The city of Minneapolis
4.2shall be solely responsible for all payments thereunder.
4.3(c) All unspent proceeds from outstanding bonds referenced in paragraph (a)
4.4and proceeds to be received from unissued bonds referenced in paragraph (b) shall be
4.5transferred to Hennepin County as provided in the transactional documents to be used
4.6solely for capital improvements for the libraries located within the city of Minneapolis
4.7and in a manner consistent with the terms of the purposes established for the issuance
4.8of the bonds. Nothing in this section obligates Hennepin County to fund any capital
4.9improvements in any amounts above and beyond the amount of the proceeds transferred
4.10under this section.
4.11(d) The outstanding principal and interest due for all bonds issued by Hennepin
4.12County pursuant to Minnesota Statutes, section 383B.245, prior to the merger of the
4.13Minneapolis Public Library and the Hennepin County library system shall be paid by levy
4.14of a tax on the taxable property within the county outside the city of Minneapolis.

4.15 Sec. 8. OPERATING FUNDS.
4.16(a) In addition to any tax revenues that may be levied by Hennepin County to
4.17operate the consolidated Hennepin County library system and in addition to any other
4.18obligations set out in this act, the city of Minneapolis shall contribute funds as specified
4.19in paragraphs (b) and (c).
4.20(b) The city of Minneapolis shall contribute operating funds to Hennepin County for
4.21the library system for a period of ten years after the effective date. The contribution in the
4.22first year will be in the amount of $7,800,000. The annual contribution after the first year
4.23will be in an amount that declines $780,000 per year from the previous year.
4.24(c) The city of Minneapolis shall contribute funding to Hennepin County in addition
4.25to the operating funds referenced in paragraph (b) for a period of eight years after the
4.26effective date to extend the hours of operation of the public libraries located in the city
4.27of Minneapolis as determined by the city in an amount provided in the transactional
4.28documents. In the first three years after the effective date, the city of Minneapolis will
4.29provide full funding for any such extension of hours of operation, including the costs of
4.30reopening any shuttered Minneapolis public libraries. The contribution by the city of
4.31Minneapolis will decline by an equal amount per year over the remaining five years as
4.32provided in the transactional documents.

4.33 Sec. 9. PLANETARIUM.
5.1Any unspent balance in the grant to the city of Minneapolis provided in Laws 2005,
5.2chapter 20, article 1, section 23, subdivision 16, paragraph (a), shall be redirected and
5.3assigned to Hennepin County for the purposes of completing design and to construct,
5.4furnish, and equip a new Minnesota planetarium and space discovery center in conjunction
5.5with the Central Library of the Minneapolis Public Library.

5.6 Sec. 10. MINNEAPOLIS PUBLIC LIBRARY BOARD.
5.7(a) Notwithstanding any other laws to the contrary or any provision of the
5.8Minneapolis city charter, the Minneapolis Library Board and all of its functions will be
5.9dissolved upon the merger date.
5.10(b) All outstanding liabilities of the Minneapolis Library Board as of the merger date
5.11will be assumed by the city of Minneapolis as provided in the transactional documents.

5.12 Sec. 11. BALLPARK TAX LEVY.
5.13(a) The funds allowed pursuant to Minnesota Statutes, section 473.757, subdivision
5.142, for the purpose of extending the hours of operation of Hennepin County libraries and
5.15Minneapolis public libraries shall apply to the merged system of the Minneapolis and
5.16Hennepin County libraries after the merger date.
5.17(b) Any funds expended pursuant to Minnesota Statutes, section 473.757,
5.18subdivision 2, shall be in supplement to those funds used to extend the hours of operation
5.19referenced in section 8, paragraph (c).

5.20 Sec. 12. TRANSACTIONAL DOCUMENTS.
5.21The Minneapolis Library Board, the city of Minneapolis, and Hennepin County
5.22may enter into transactional documents to effectuate the merger of the library systems as
5.23provided in this act.



5.24ARTICLE 2

5.25STATUTORY CHANGES


5.26 Section 1. Minnesota Statutes 2006, section 275.065, subdivision 3, is amended to read:
5.27 Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare
5.28and the county treasurer shall deliver after November 10 and on or before November 24
5.29each year, by first class mail to each taxpayer at the address listed on the county's current
5.30year's assessment roll, a notice of proposed property taxes.
5.31(b) The commissioner of revenue shall prescribe the form of the notice.
6.1(c) The notice must inform taxpayers that it contains the amount of property taxes
6.2each taxing authority proposes to collect for taxes payable the following year. In the case
6.3of a town, or in the case of the state general tax, the final tax amount will be its proposed
6.4tax. In the case of taxing authorities required to hold a public meeting under subdivision 6,
6.5the notice must clearly state that each taxing authority, including regional library districts
6.6established under section 134.201, and including the metropolitan taxing districts as
6.7defined in paragraph (i), but excluding all other special taxing districts and towns, will
6.8hold a public meeting to receive public testimony on the proposed budget and proposed or
6.9final property tax levy, or, in case of a school district, on the current budget and proposed
6.10property tax levy. It must clearly state the time and place of each taxing authority's
6.11meeting, a telephone number for the taxing authority that taxpayers may call if they have
6.12questions related to the notice, and an address where comments will be received by mail.
6.13(d) The notice must state for each parcel:
6.14(1) the market value of the property as determined under section 273.11, and used
6.15for computing property taxes payable in the following year and for taxes payable in the
6.16current year as each appears in the records of the county assessor on November 1 of the
6.17current year; and, in the case of residential property, whether the property is classified as
6.18homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
6.19which the market values apply and that the values are final values;
6.20(2) the items listed below, shown separately by county, city or town, and state general
6.21tax, net of the residential and agricultural homestead credit under section 273.1384, voter
6.22approved school levy, other local school levy, and the sum of the special taxing districts,
6.23and as a total of all taxing authorities:
6.24(i) the actual tax for taxes payable in the current year; and
6.25(ii) the proposed tax amount.
6.26If the county levy under clause (2) includes an amount for a lake improvement
6.27district as defined under sections 103B.501 to 103B.581, the amount attributable for that
6.28purpose must be separately stated from the remaining county levy amount.
6.29In the case of a town or the state general tax, the final tax shall also be its proposed
6.30tax unless the town changes its levy at a special town meeting under section 365.52. If a
6.31school district has certified under section 126C.17, subdivision 9, that a referendum will
6.32be held in the school district at the November general election, the county auditor must
6.33note next to the school district's proposed amount that a referendum is pending and that,
6.34if approved by the voters, the tax amount may be higher than shown on the notice. In
6.35the case of the city of Minneapolis, the levy for the Minneapolis Library Board and the
6.36levy for Minneapolis Park and Recreation shall be listed separately from the remaining
7.1amount of the city's levy. In the case of the city of St. Paul, the levy for the St. Paul
7.2Library Agency must be listed separately from the remaining amount of the city's levy.
7.3In the case of Ramsey County, any amount levied under section 134.07 may be listed
7.4separately from the remaining amount of the county's levy. In the case of a parcel where
7.5tax increment or the fiscal disparities areawide tax under chapter 276A or 473F applies,
7.6the proposed tax levy on the captured value or the proposed tax levy on the tax capacity
7.7subject to the areawide tax must each be stated separately and not included in the sum of
7.8the special taxing districts; and
7.9(3) the increase or decrease between the total taxes payable in the current year and
7.10the total proposed taxes, expressed as a percentage.
7.11For purposes of this section, the amount of the tax on homesteads qualifying under
7.12the senior citizens' property tax deferral program under chapter 290B is the total amount
7.13of property tax before subtraction of the deferred property tax amount.
7.14(e) The notice must clearly state that the proposed or final taxes do not include
7.15the following:
7.16(1) special assessments;
7.17(2) levies approved by the voters after the date the proposed taxes are certified,
7.18including bond referenda and school district levy referenda;
7.19(3) a levy limit increase approved by the voters by the first Tuesday after the first
7.20Monday in November of the levy year as provided under section 275.73;
7.21(4) amounts necessary to pay cleanup or other costs due to a natural disaster
7.22occurring after the date the proposed taxes are certified;
7.23(5) amounts necessary to pay tort judgments against the taxing authority that become
7.24final after the date the proposed taxes are certified; and
7.25(6) the contamination tax imposed on properties which received market value
7.26reductions for contamination.
7.27(f) Except as provided in subdivision 7, failure of the county auditor to prepare or
7.28the county treasurer to deliver the notice as required in this section does not invalidate the
7.29proposed or final tax levy or the taxes payable pursuant to the tax levy.
7.30(g) If the notice the taxpayer receives under this section lists the property as
7.31nonhomestead, and satisfactory documentation is provided to the county assessor by the
7.32applicable deadline, and the property qualifies for the homestead classification in that
7.33assessment year, the assessor shall reclassify the property to homestead for taxes payable
7.34in the following year.
7.35(h) In the case of class 4 residential property used as a residence for lease or rental
7.36periods of 30 days or more, the taxpayer must either:
8.1(1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
8.2renter, or lessee; or
8.3(2) post a copy of the notice in a conspicuous place on the premises of the property.
8.4The notice must be mailed or posted by the taxpayer by November 27 or within
8.5three days of receipt of the notice, whichever is later. A taxpayer may notify the county
8.6treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
8.7which the notice must be mailed in order to fulfill the requirements of this paragraph.
8.8(i) For purposes of this subdivision, subdivisions 5a and 6, "metropolitan special
8.9taxing districts" means the following taxing districts in the seven-county metropolitan area
8.10that levy a property tax for any of the specified purposes listed below:
8.11(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
8.12473.446 , 473.521, 473.547, or 473.834;
8.13(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
8.14and
8.15(3) Metropolitan Mosquito Control Commission under section 473.711.
8.16For purposes of this section, any levies made by the regional rail authorities in the
8.17county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
8.18398A shall be included with the appropriate county's levy and shall be discussed at that
8.19county's public hearing.
8.20(j) The governing body of a county, city, or school district may, with the consent
8.21of the county board, include supplemental information with the statement of proposed
8.22property taxes about the impact of state aid increases or decreases on property tax
8.23increases or decreases and on the level of services provided in the affected jurisdiction.
8.24This supplemental information may include information for the following year, the current
8.25year, and for as many consecutive preceding years as deemed appropriate by the governing
8.26body of the county, city, or school district. It may include only information regarding:
8.27(1) the impact of inflation as measured by the implicit price deflator for state and
8.28local government purchases;
8.29(2) population growth and decline;
8.30(3) state or federal government action; and
8.31(4) other financial factors that affect the level of property taxation and local services
8.32that the governing body of the county, city, or school district may deem appropriate to
8.33include.
8.34The information may be presented using tables, written narrative, and graphic
8.35representations and may contain instruction toward further sources of information or
8.36opportunity for comment.

9.1 Sec. 2. Minnesota Statutes 2006, section 383B.237, is amended to read:
9.2383B.237 LIBRARY SYSTEM.
9.3The Hennepin County Board of Commissioners may establish and maintain a system
9.4of public libraries for the free use of the residents of the county. The board shall determine
9.5the locations of the libraries, and may levy taxes for library operations and maintenance
9.6on all taxable property within the county which was not taxed in 1980 by the city of
9.7Minneapolis for the support of any free public library. The county may acquire, lease,
9.8construct, alter, or contract for the use of any real or personal property necessary for the
9.9establishment and operation of a free county library system. Acquisition of real property
9.10may be undertaken in accordance with chapter 117.

9.11 Sec. 3. Minnesota Statutes 2006, section 383B.239, is amended to read:
9.12383B.239 BOARD.
9.13The county board shall direct, operate and manage the county library system. A
9.14county library board consisting of seven ten members who reside in the county library
9.15service area shall be appointed by the county board. For the first three years following
9.16the merger of the Minneapolis Public Library and the Hennepin County library system,
9.17three of the members shall be residents of the city of Minneapolis. The library board shall
9.18provide advice and make recommendations on any matter pertaining to the library system
9.19to the county board and the library director and shall exercise the powers and perform the
9.20duties delegated to it by the county board, which may include, but are not limited to, the
9.21establishment of rules governing library operations, review of the annual operating budget
9.22for submission to the county board, development of a long-range plan and acceptance of
9.23gift and trust funds. The library board shall determine the contents of the collections of the
9.24library system and shall be responsible for the use of library meeting rooms.

9.25 Sec. 4. Minnesota Statutes 2006, section 383B.245, is amended to read:
9.26383B.245 LIBRARY LEVY.
9.27(a) The county board may levy a tax on the taxable property within the county
9.28outside of any city in which is situated a free public library of the city to acquire, better,
9.29and construct county library buildings and branches and to pay principal and interest
9.30on bonds issued for that purpose.
9.31(b) The county board may by resolution adopted by a five-sevenths vote issue and
9.32sell general obligation bonds of the county in the manner provided in sections 475.60 to
9.33475.73 . The bonds shall not be subject to the limitations of sections 475.51 to 475.59, but
10.1the maturity years and amounts and interest rates of each series of bonds shall be fixed
10.2so that the maximum amount of principal and interest to become due in any year, on the
10.3bonds of that series and of all outstanding series issued by or for the purposes of libraries,
10.4shall not exceed an amount equal to 0.01612 percent of market value of all taxable
10.5property in the county, which was not taxed in 1987 by any city for the support of any
10.6free public library, as last finally equalized before the issuance of the new series. When
10.7the tax levy authorized in this section is collected it shall be appropriated and credited to
10.8a debt service fund for the bonds in amounts required each year in lieu of a countywide
10.9tax levy for the debt service fund under section 475.61.

10.10 Sec. 5. Minnesota Statutes 2006, section 383B.247, is amended to read:
10.11383B.247 MERGER.
10.12The county and the library board of the city of Minneapolis may agree to merge their
10.13public library systems at a time and in a manner as they may agree as enabled pursuant to
10.14this act. The merger shall be subject to enabling legislation by the legislature.

10.15 Sec. 6. EFFECTIVE DATE.
10.16This act is effective the day after the transactional documents have been fully
10.17executed and certificates of local approval have been filed by the Minneapolis Library
10.18Board, the city of Minneapolis, and Hennepin County in compliance with Minnesota
10.19Statutes, section 645.021, subdivision 3.