1.1                          A bill for an act
  1.2             relating to education; approving maximum effort 
  1.3             capital loans to independent school district Nos. 727, 
  1.4             Big Lake, 362, Littlefork-Big Falls, and 36, Kelliher; 
  1.5             appropriating money; authorizing the sale of bonds. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [APPROPRIATION.] 
  1.8      $23,670,000 is appropriated from the maximum effort school 
  1.9   loan fund to the commissioner of education to make capital loans 
  1.10  to school districts as provided in Minnesota Statutes, sections 
  1.11  124.36 to 124.46. 
  1.12     Sec. 2.  [CAPITAL LOAN APPROVAL.] 
  1.13     Subdivision 1.  [BIG LAKE.] A capital loan of $9,770,000 is 
  1.14  approved for independent school district No. 727, Big Lake. 
  1.15     Subd. 2.  [LITTLEFORK-BIG FALLS.] A capital loan of 
  1.16  $7,000,000 is approved for independent school district No. 362, 
  1.17  Littlefork-Big Falls. 
  1.18     Subd. 3.  [KELLIHER.] A capital loan of $6,900,000 is 
  1.19  approved for independent school district No. 36, Kelliher. 
  1.20     Sec. 3.  [COMMISSIONER REVIEW.] 
  1.21     The commissioner of education shall review the proposed 
  1.22  plan and budget of the projects and may reduce the amount of a 
  1.23  loan to ensure that a project will be economical.  The 
  1.24  commissioner may recover the cost incurred by the commissioner 
  1.25  for any professional services associated with the final review 
  2.1   by reducing the proceeds of the loan paid to a district. 
  2.2      Sec. 4.  [BONDS SALE.] 
  2.3      To provide the money appropriated by section 1 from the 
  2.4   maximum effort school loan fund, the commissioner of finance, on 
  2.5   request of the governor, shall sell and issue bonds of the state 
  2.6   in an amount up to $23,670,000 in the manner, on the terms, and 
  2.7   with the effect prescribed by Minnesota Statutes, sections 
  2.8   16A.641 to 16A.675, and by the Minnesota Constitution, article 
  2.9   XI, sections 4 to 7.  The proceeds of the bonds, except accrued 
  2.10  interest and any premium received on the sale of the bonds, must 
  2.11  be credited to a bond proceeds account in the maximum effort 
  2.12  school loan fund.