HF 1232

as introduced - 87th Legislature (2011 - 2012) Posted on 03/21/2011 09:51am

A bill for an act
relating to capital investment; canceling appropriations and reducing the
corresponding bond sale authorizations; requiring the sale of refunding bonds to
achieve savings.

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

Section 1. new text begin CANCELLATIONS; BOND SALE AUTHORIZATIONS REDUCED.
new text end

new text begin Subdivision 1. new text end

new text begin 2006; rail service improvement program. new text end

new text begin The uncommitted
amount of the appropriation in Laws 2006, chapter 258, section 16, subdivision 6, for the
rail service improvement program, estimated to be $2,000,000, is canceled. The bond sale
authorization in Laws 2006, chapter 258, section 25, subdivision 1, is reduced by the
same amount.
new text end

new text begin Subd. 2. new text end

new text begin 2008; DNR. new text end

new text begin The uncommitted amount of the appropriation in Laws 2008,
chapter 179, section 7, subdivision 29, as amended by Laws 2009, chapter 93, article 1,
section 41, for a walking path in Clara City, estimated to be $225,000, is canceled. The
bond sale authorization in Laws 2008, chapter 179, section 27, subdivision 1, is reduced
by the same amount.
new text end

new text begin Subd. 3. new text end

new text begin 2008; Central Corridor LRT. new text end

new text begin The unexpended amount of the
appropriation in Laws 2008, chapter 365, section 4, subdivision 2, for the Central Corridor
light rail transit line, estimated to be $42,811,182, is canceled. The bond sale authorization
in Laws 2008, chapter 365, section 6, is reduced by the same amount.
new text end

new text begin Subd. 4. new text end

new text begin 2010; metropolitan area regional parks. new text end

new text begin (a) The uncommitted amount
of the appropriation in Laws 2010, chapter 189, section 16, subdivision 4, paragraph (a),
for metropolitan regional parks and trails, estimated to be $10,418,145.06, is canceled.
The bond sale authorization in Laws 2010, chapter 189, section 26, subdivision 1, is
reduced by the same amount.
new text end

new text begin (b) The uncommitted amount of the appropriation in Laws 2010, chapter 189,
section 16, subdivision 4, paragraph (b), for Como Zoo, estimated to be $11,000,000, is
canceled. The bond sale authorization in Laws 2010, chapter 189, section 26, subdivision
1, is reduced by the same amount.
new text end

new text begin (c) The uncommitted amount of the appropriation in Laws 2010, chapter 189, section
16, subdivision 4, paragraph (f), for the Rock Island bridge park and trail, estimated to be
$1,000,000, is canceled. The bond sale authorization in Laws 2010, chapter 189, section
26, subdivision 1, is reduced by the same amount.
new text end

new text begin Subd. 5. new text end

new text begin Must not obligate bond appropriations. new text end

new text begin No money may be committed,
encumbered, or spent for a project included in this section. Notwithstanding the
cancellation amounts listed in this section, the amount canceled for each project listed
in this section, and the corresponding bond sale authorization reduction, is the amount
actually uncommitted as of July 1, 2011.
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. new text begin STATE DEBT REFUNDING; SAVINGS.
new text end

new text begin Subdivision 1. new text end

new text begin Debt service reduction for biennium, savings. new text end

new text begin The purpose of this
section is to reduce the amount appropriated from the general fund under Minnesota
Statutes, section 16A.641, subdivision 10, to pay debt service on outstanding general
obligation bonds of the state during fiscal years 2012 and 2013 by at least $60,000,000.
The commissioner of management and budget must determine that this amount has been
achieved by including all bond appropriation cancellations and corresponding bond sale
authorization reductions enacted during the 2011 legislative session, savings achieved by
the sale and issuance of refunding bonds as provided in subdivision 2, and, if necessary,
additional cancellations as provided in subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Refunding; estimated general fund savings. new text end

new text begin The commissioner of
management and budget must issue and sell refunding bonds for state general obligation
bonds that are eligible for refunding under federal tax laws if the interest rate savings to
the state are greater than the costs associated with the issuance and sale of the refunding
bonds. The commissioner must implement this subdivision in a time frame that will
reduce the amount of the appropriation from the general fund authorized in Minnesota
Statutes, section 16A.641, subdivision 10, in fiscal years 2012 and 2013.
new text end

new text begin Subd. 3. new text end

new text begin Additional cancellations. new text end

new text begin If cancellation of bond appropriations and bond
sale authorization reductions enacted during the 2011 legislative session and the sale of
refunding bonds under subdivision 2 do not reduce the debt service appropriation from the
general fund by at least $60,000,000, the commissioner of management and budget must
make additional cancellations of appropriations for projects funded with state general
obligation bond proceeds and reduce the corresponding bond sale authorizations by the
same amount, so that the total amount of reduced debt service together with other savings
achieved, will reduce the debt service appropriation from the general fund for fiscal years
2012 and 2013 by at least $60,000,000.
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