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HF 3739

as introduced - 86th Legislature (2009 - 2010) Posted on 03/25/2010 12:03pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/25/2010

Current Version - as introduced

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A bill for an act
relating to higher education; modifying bond allocation limits; authorizing
transfer; amending Minnesota Statutes 2008, sections 474A.04, subdivision
6; 474A.091, subdivision 3.

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

Section 1.

Minnesota Statutes 2008, section 474A.04, subdivision 6, is amended to
read:


Subd. 6.

Entitlement transfers.

An entitlement issuer may enter into an agreement
with another entitlement issuer whereby the recipient entitlement issuer issues obligations
pursuant to bonding authority allocated to the original entitlement issuer under this
section. An entitlement issuer may enter into an agreement with an issuer which is not
an entitlement issuer whereby the recipient issuer issues qualified mortgage bonds, up to
$100,000 of which are issued pursuant to bonding authority allocated to the original
entitlement issuer under this section. The agreement may be approved and executed by the
mayor of the entitlement issuer with or without approval or review by the city council.new text begin
Notwithstanding section 474A.091, subdivision 4, prior to December 1, the Minnesota
Housing Finance Agency, Minnesota Office of Higher Education, and Minnesota Rural
Finance Authority may transfer allocated bonding authority made available under this
chapter to one another under an agreement by each agency and the commissioner.
new text end

Sec. 2.

Minnesota Statutes 2008, section 474A.091, subdivision 3, is amended to read:


Subd. 3.

Allocation procedure.

(a) The commissioner shall allocate available
bonding authority under this section on the Monday of every other week beginning with
the first Monday in August through and on the last Monday in November. Applications
for allocations must be received by the department by 4:30 p.m. on the Monday preceding
the Monday on which allocations are to be made. If a Monday falls on a holiday, the
allocation will be made or the applications must be received by the next business day
after the holiday.

(b) Prior to October 1, only the following applications shall be awarded allocations
from the unified pool. Allocations shall be awarded in the following order of priority:

(1) applications for residential rental project bonds;

(2) applications for small issue bonds for manufacturing projects; and

(3) applications for small issue bonds for agricultural development bond loan
projects.

(c) On the first Monday in October through the last Monday in November,
allocations shall be awarded from the unified pool in the following order of priority:

(1) applications for student loan bonds issued by or on behalf of the Minnesota
Office of Higher Education;

(2) applications for mortgage bonds;

(3) applications for public facility projects funded by public facility bonds;

(4) applications for small issue bonds for manufacturing projects;

(5) applications for small issue bonds for agricultural development bond loan
projects;

(6) applications for residential rental project bonds;

(7) applications for enterprise zone facility bonds;

(8) applications for governmental bonds; and

(9) applications for redevelopment bonds.

(d) If there are two or more applications for manufacturing projects from the
unified pool and there is insufficient bonding authority to provide allocations for all
manufacturing projects in any one allocation period, the available bonding authority shall
be awarded based on the number of points awarded a project under section 474A.045
with those projects receiving the greatest number of points receiving allocation first. If
two or more applications for manufacturing projects receive an equal amount of points,
available bonding authority shall be awarded by lot unless otherwise agreed to by the
respective issuers.

(e) If there are two or more applications for enterprise zone facility projects from
the unified pool and there is insufficient bonding authority to provide allocations for
all enterprise zone facility projects in any one allocation period, the available bonding
authority shall be awarded based on the number of points awarded a project under section
474A.045 with those projects receiving the greatest number of points receiving allocation
first. If two or more applications for enterprise zone facility projects receive an equal
amount of points, available bonding authority shall be awarded by lot unless otherwise
agreed to by the respective issuers.

(f) If there are two or more applications for residential rental projects from the
unified pool and there is insufficient bonding authority to provide allocations for all
residential rental projects in any one allocation period, the available bonding authority
shall be awarded in the following order of priority: (1) projects that preserve existing
federally subsidized housing; (2) projects that are not restricted to persons who are 55
years of age or older; and (3) other residential rental projects.

(g) From the first Monday in August through the last Monday in November,
$20,000,000 of bonding authority or an amount equal to the total annual amount of
bonding authority allocated to the small issue pool under section 474A.03, subdivision 1,
less the amount allocated to issuers from the small issue pool for that year, whichever is
less, is reserved within the unified pool for small issue bonds to the extent such amounts
are available within the unified pool.

(h) The total amount of allocations for mortgage bonds from the housing pool and
the unified pool may not exceed:

(1) $10,000,000 for any one city; or

(2) $20,000,000 for any number of cities in any one county.

(i) The total amount of allocations for student loan bonds from the unified pool may
not exceed deleted text begin $10,000,000deleted text end new text begin $25,000,000new text end per year.

(j) If there is insufficient bonding authority to fund all projects within any qualified
bond category other than enterprise zone facility projects, manufacturing projects, and
residential rental projects, allocations shall be awarded by lot unless otherwise agreed to
by the respective issuers.

(k) If an application is rejected, the commissioner must notify the applicant and
return the application deposit to the applicant within 30 days unless the applicant requests
in writing that the application be resubmitted.

(l) The granting of an allocation of bonding authority under this section must be
evidenced by issuance of a certificate of allocation.