1.1 	A bill for an act
1.2 	relating to capital investment; delaying bond sale authorizations and reducing 
1.3 	appropriations; requiring the sale and issuance of refunding bonds.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. STATE DEBT REFUNDING REQUIRED.
 1.6 		Subdivision 1.Refunding. The commissioner of management and budget must 
1.7 	issue and sell refunding bonds for state general obligation bonds that are eligible for 
1.8 	refunding under federal tax laws if the interest rate savings to the state are greater than the 
1.9 	costs associated with the issuance and sale of the refunding bonds. The commissioner must 
1.10 	implement this section in a time frame that will reduce the amount of the appropriation 
1.11 	from the general fund authorized in Minnesota Statutes, section 16A.641, subdivision 
1.12 	10, in fiscal years 2012 and 2013.
1.13 		Subd. 2.Appropriation reduction. The result of the sale of refunding bonds under 
1.14 	subdivision 1 is estimated to reduce the appropriation for fiscal years 2012 and 2013 under 
1.15 	Minnesota Statutes, section 16A.641, subdivision 10, by $60,000,000.
1.16 		Subd. 3.Alternative reduction. To the extent that the sale of refunding bonds 
1.17 	in subdivision 1 does not reduce the appropriation from the general fund in Minnesota 
1.18 	Statutes, section 16A.641, subdivision 10, by $60,000,000, the commissioner of 
1.19 	management and budget must delay the issuance of general obligation bonds that have 
1.20 	been authorized but not yet issued to the extent that these delays, together with the result 
1.21 	of the refunding in subdivision 1, reduces the appropriation for fiscal years 2012 and 2013 
1.22 	under Minnesota Statutes, section 16A.641, subdivision 10, by $60,000,000.
2.1 		Subd. 4.Effect of delay. Any delay in a capital investment project incurred as 
2.2 	a result of this section shall not be counted toward the four-year time limits set forth 
2.3 	in Minnesota Statutes, section 16A.642.

2.4 	EFFECTIVE DATE. This section is effective the day following final enactment.