HF 635

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/09/2017 10:47am

A bill for an act
relating to capital investment; modifying provisions of the Lewis and Clark
Regional Water System project; authorizing additional issuance of housing
infrastructure bonds; amending Minnesota Statutes 2016, sections 16A.967,
subdivisions 7, 8, by adding a subdivision; 462A.37, subdivisions 2a, 2b.

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

Section 1.

Minnesota Statutes 2016, section 16A.967, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Unspent appropriation for Phase 3. new text end

new text begin (a) Upon completion of Phase 2 of the
Lewis and Clark Regional Water System project, which is the work described in subdivision
2, the remaining amount of the appropriation bond sale authorization in subdivision 2 may
be used to finance one or more of the following: land acquisition, design, engineering, and
construction of facilities and infrastructure necessary for Phase 3 of the Lewis and Clark
Regional Water System project. Phase 3 includes extension of the project from the
Lincoln-Pipestone Rural Water System connection near Adrian to Worthington, construction
of a reservoir in Nobles County and a meter building in Worthington, and acquisition and
installation of a supervisory control and data acquisition system. The provisions of
subdivision 2, paragraphs (d) to (g), apply to this subdivision.
new text end

new text begin (c) Proceeds of the appropriation bonds sold under the authorization in subdivision 2
may be used for the purposes of this subdivision only after the commissioner determines
that the construction and administration for work done on the project will comply with (1)
all federal requirements and regulations associated with the Lewis and Clark Rural Water
System Act of 2000, and (2) the cooperative agreement between the United States Department
of the Interior and the Lewis and Clark Regional Water System, Inc.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2016, section 16A.967, subdivision 7, is amended to read:

Subd. 7.

Appropriation of proceeds.

The proceeds of appropriation bonds and interest
credited to the special appropriation Lewis and Clark bond proceeds fund are appropriated
to the commissioner deleted text begin for payment of capital expenses deleted text end for the purposes provided by subdivision
2, paragraph (a), new text begin and to the Public Facilities Authority for the purposes of subdivision 2a,
for payment of capital expenses, new text end debt service on the bonds including capitalized interest,
nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds and
payments under any agreements entered into under subdivision 2, paragraph (e), each as
permitted by state and federal law, and such proceeds may be granted, loaned, or otherwise
provided for the public purposes provided by subdivision 2, paragraph (a) new text begin , and subdivision
2a new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2016, section 16A.967, subdivision 8, is amended to read:

Subd. 8.

Appropriation for debt service and other purposes.

An amount, up to
$1,351,000 needed to pay principal and interest on appropriation bonds issued under this
section new text begin for subdivisions 2 and 2a new text end is appropriated each fiscal year from the general fund to
the commissioner, subject to repeal, unallotment under section 16A.152, or cancellation,
otherwise pursuant to subdivision 6, for deposit into the bond payments account established
for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The
appropriation is available beginning in fiscal year 2017 and through fiscal year 2038.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2016, section 462A.37, subdivision 2a, is amended to read:

Subd. 2a.

Additional authorization.

In addition to the amount authorized in subdivision
2, the agency may issue up to deleted text begin $80,000,000 deleted text end new text begin $97,000,000 new text end of housing infrastructure bonds in
one or more series to which the payments made under this section may be pledged.

Sec. 5.

Minnesota Statutes 2016, section 462A.37, subdivision 2b, is amended to read:

Subd. 2b.

Additional authorization.

In addition to the amount authorized in subdivisions
2 and 2a, the agency may issue up to deleted text begin $10,000,000 deleted text end new text begin $13,000,000 new text end of housing infrastructure
bonds in one or more series to which the payments made under this section may be pledged.