SF 1057

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 09:33am

A bill for an act
relating to debt service; amending the use of bond sale premiums; amending
Minnesota Statutes 2010, sections 16A.641, subdivision 7; 16A.642, subdivision
2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 16A.641, subdivision 7, is amended to
read:

Subd. 7.

Credit of proceeds.

(a) Proceeds of bonds issued under each law must be
credited by the commissioner to a special fund, as provided in this subdivision.

(b) Accrued interest deleted text begin and any premium deleted text end received on sale of the bonds must be credited
to the state bond fund created by the Constitution, article XI, section 7. new text begin Any premium
received on the sale of the bonds on or prior to December 1, 2012, must be credited to
the state bond fund. Any premium received on the sale of the bonds after December 1,
2012, must be credited to either the bond proceeds fund where it is used to reduce the par
amount of the bonds issued or the state bond fund.
new text end

(c) Except as otherwise provided by law, proceeds of state bonds issued under the
Constitution, article XI, section 5, clause (a), must be credited to the bond proceeds fund
established by section 16A.631.

(d) Proceeds of state highway bonds must be credited to the trunk highway fund
under the Constitution, article XIV, section 6.

(e) Proceeds of bonds issued for programs of grants or loans to political subdivisions
must be credited to special accounts in the bond proceeds fund or to special funds
established by laws stating the purposes of the grants or loans, and the standards and
criteria under which an executive agency is authorized to make them.

(f) Proceeds of refunding bonds must be credited to the state bond fund as provided
in section 16A.66, subdivision 1.

(g) Proceeds of other bonds must be credited as provided in the law authorizing
their issuance.

Sec. 2.

Minnesota Statutes 2010, section 16A.642, subdivision 2, is amended to read:

Subd. 2.

Cancellation.

new text begin (a) new text end If the commissioner determines that the purposes for
which general obligation bonds of the state have been issued or for which general fund
monies were appropriated are accomplished or abandoned, after consultation with the
affected agencies, and there is a remaining authorization or appropriation for a specific
project of $500 or less, the commissioner may cancel the remaining authorization or
appropriation for that project.

new text begin (b) If a premium received on the sale of bonds is credited to the bond proceeds
fund, pursuant to section 16A.641, subdivision 7, paragraph (b), the corresponding bond
authorization to which the premium is attributable must be reduced accordingly by the
commissioner.
new text end

new text begin (c) new text end The commissioner must notify the chairs of the senate Finance Committee and
the house of representatives Capital Investment Committee of any bond authorizations or
general fund appropriations canceled under this subdivision.