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HF 2547

as introduced - 93rd Legislature (2023 - 2024) Posted on 05/13/2023 12:17pm

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

Current Version - as introduced

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A bill for an act
relating to employment and economic development; funding the cleanup of the
freeway landfill and dump in the city of Burnsville; authorizing the sale and
issuance of appropriation bonds; appropriating money; proposing coding for new
law in Minnesota Statutes, chapter 16A.

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

Section 1.

new text begin [16A.9685] FREEWAY LANDFILL AND DUMP APPROPRIATION
BONDS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument of
the state payable during a biennium from one or more of the following sources:
new text end

new text begin (1) money appropriated by law from the general fund in any biennium for debt service
due with respect to obligations described in subdivision 3;
new text end

new text begin (2) proceeds of the sale of obligations described in subdivision 3;
new text end

new text begin (3) payments received for that purpose under agreements and ancillary arrangements
described in subdivision 2, paragraph (d); and
new text end

new text begin (4) investment earnings on amounts in clauses (1) to (3).
new text end

new text begin (c) "Debt service" means the amount payable in any biennium of principal, premium, if
any, and interest on appropriation bonds, and the fees, charges, and expenses related to the
bonds.
new text end

new text begin (d) "Freeway landfill and dump" means priority qualified facilities as defined in section
115B.39, subdivision 2, paragraph (m).
new text end

new text begin Subd. 2. new text end

new text begin Authorization to issue appropriation bonds. new text end

new text begin (a) Subject to the limitations of
this subdivision, the commissioner may sell and issue appropriation bonds of the state under
this section for public purposes as provided by law.
new text end

new text begin (b) Proceeds of the appropriation bonds must be credited to a special freeway landfill
and dump appropriation bond proceeds fund in the state treasury. All income from investment
of the bond proceeds, as estimated by the commissioner, is appropriated to the commissioner
for the payment of principal and interest on the appropriation bonds.
new text end

new text begin (c) Appropriation bonds may be issued in one or more issues or series on the terms and
conditions the commissioner determines to be in the best interests of the state, but the term
on any series of appropriation bonds may not exceed 25 years. The appropriation bonds of
each issue and series thereof shall be dated and bear interest and may be includable in or
excludable from the gross income of the owners for federal income tax purposes.
new text end

new text begin (d) At the time of or in anticipation of issuing the appropriation bonds, and at any time
thereafter, so long as the appropriation bonds are outstanding, the commissioner may enter
into agreements and ancillary arrangements relating to the appropriation bonds, including
but not limited to trust indentures, grant agreements, lease or use agreements, operating
agreements, management agreements, liquidity facilities, remarketing or dealer agreements,
letter of credit agreements, insurance policies, guaranty agreements, reimbursement
agreements, indexing agreements, or interest exchange agreements. Any payments made
or received according to the agreement or ancillary arrangement shall be made from or
deposited as provided in the agreement or ancillary arrangement. The determination of the
commissioner included in an interest exchange agreement that the agreement relates to an
appropriation bond shall be conclusive.
new text end

new text begin (e) The commissioner may enter into written agreements or contracts relating to the
continuing disclosure of information necessary to comply with or facilitate the issuance of
appropriation bonds in accordance with federal securities laws, rules, and regulations,
including Securities and Exchange Commission rules and regulations in Code of Federal
Regulations, title 17, section 240.15c2-12. An agreement may be in the form of covenants
with purchasers and holders of appropriation bonds set forth in the order or resolution
authorizing the issuance of the appropriation bonds or a separate document authorized by
the order or resolution.
new text end

new text begin (f) The appropriation bonds are not subject to chapter 16C.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation bonds authorization. new text end

new text begin Appropriation bonds may be sold and
issued in amounts that, in the opinion of the commissioner, are necessary to provide sufficient
funds to the Pollution Control Agency under subdivision 8, not to exceed $165,000,000 net
of costs of issuance, and to pay debt service including capitalized interest, costs of issuance,
costs of credit enhancement, or make payments under other agreements entered into under
subdivision 2, paragraph (d).
new text end

new text begin Subd. 4. new text end

new text begin Form; procedure. new text end

new text begin (a) Appropriation bonds may be issued in the form of bonds,
notes, or other similar instruments and in the manner provided in section 16A.672. In the
event that any provision of section 16A.672 conflicts with this section, this section shall
control.
new text end

new text begin (b) Every appropriation bond shall include a conspicuous statement of the limitation
established in subdivision 7.
new text end

new text begin (c) Appropriation bonds may be sold at either public or private sale upon terms as the
commissioner shall determine are not inconsistent with this section and may be sold at any
price or percentage of par value. Any bid received may be rejected.
new text end

new text begin (d) Appropriation bonds must bear interest at a fixed or variable rate.
new text end

new text begin (e) Notwithstanding any other law, appropriation bonds issued under this section shall
be fully negotiable.
new text end

new text begin Subd. 5. new text end

new text begin Refunding bonds. new text end

new text begin The commissioner may issue appropriation bonds for the
purpose of refunding any appropriation bonds then outstanding, including the payment of
any redemption premiums on the bonds, any interest accrued or to accrue to the redemption
date, and costs related to the issuance and sale of the refunding bonds. The proceeds of any
refunding bonds may, in the discretion of the commissioner, be applied to the purchase or
payment at maturity of the appropriation bonds to be refunded, to the redemption of the
outstanding appropriation bonds on any redemption date, or to pay interest on the refunding
bonds and may, pending application, be placed in escrow to be applied to the purchase,
payment, retirement, or redemption. Any escrowed proceeds pending use may be invested
and reinvested in obligations that are authorized investments under section 11A.24. The
income earned or realized on the investment may also be applied to the payment of the
appropriation bonds to be refunded or interest or premiums on the refunded appropriation
bonds, or to pay interest on the refunding bonds. After the terms of the escrow have been
fully satisfied, any balance of the proceeds and any investment income may be returned to
the general fund or, if applicable, the special freeway landfill and dump appropriation bond
proceeds fund for use in any lawful manner. All refunding bonds issued under this subdivision
must be prepared, executed, delivered, and secured by appropriations in the same manner
as the appropriation bonds to be refunded.
new text end

new text begin Subd. 6. new text end

new text begin Appropriation bonds as legal investments. new text end

new text begin Any of the following entities may
legally invest any sinking funds, money, or other funds belonging to them or under their
control in any appropriation bonds issued under this section:
new text end

new text begin (1) the state, the investment board, public officers, municipal corporations, political
subdivisions, and public bodies;
new text end

new text begin (2) banks and bankers, savings and loan associations, credit unions, trust companies,
savings banks and institutions, investment companies, insurance companies, insurance
associations, and other persons carrying on a banking or insurance business; and
new text end

new text begin (3) personal representatives, guardians, trustees, and other fiduciaries.
new text end

new text begin Subd. 7. new text end

new text begin No full faith and credit; state not required to make appropriations. new text end

new text begin The
appropriation bonds are not public debt of the state, and the full faith, credit, and taxing
powers of the state are not pledged to the payment of the appropriation bonds or to any
payment that the state agrees to make under this section. Appropriation bonds shall not be
obligations paid directly, in whole or in part, from a tax of statewide application on any
class of property, income, transaction, or privilege. Appropriation bonds shall be payable
in each fiscal year only from amounts that the legislature may appropriate for debt service
for any fiscal year, provided that nothing in this section shall be construed to require the
state to appropriate money sufficient to make debt service payments with respect to the
appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall no
longer be outstanding on the earlier of (1) the first day of a fiscal year for which the
legislature shall not have appropriated amounts sufficient for debt service, or (2) the date
of final payment of the principal of and interest on the appropriation bonds.
new text end

new text begin Subd. 8. new text end

new text begin Appropriation of proceeds. new text end

new text begin The proceeds of appropriation bonds issued under
subdivision 3 and interest credited to the special freeway landfill and dump appropriation
bond proceeds fund are appropriated to the Pollution Control Agency for environmental
response actions, as defined in section 115B.39, subdivision 2, paragraph (j), at the freeway
landfill and dump.
new text end

new text begin Subd. 9. new text end

new text begin Appropriation for debt service and other purposes. new text end

new text begin An amount up to $.......
needed to pay principal and interest on appropriation bonds issued under subdivision 3 is
appropriated each fiscal year from the general fund to the commissioner and further subject
to repeal, unallotment under section 16A.152, or cancellation, otherwise as provided in
subdivision 7, for deposit into the bond payments account established for this purpose in
the special freeway landfill and dump appropriation bond proceeds fund. The appropriation
is available beginning in fiscal year 2022 through fiscal year 2035.
new text end

new text begin Subd. 10. new text end

new text begin Waiver of immunity. new text end

new text begin The waiver of immunity by the state provided for by
section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary
contracts to which the commissioner is a party.
new text end