SF 986

1st Engrossment - 87th Legislature (2011 - 2012)

Posted on 03/06/2012 02:43 p.m.

A bill for an act
relating to capital investment; delaying bond sale authorizations and reducing
appropriations; requiring the sale and issuance of refunding bonds.

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

Section 1. new text begin STATE DEBT REFUNDING REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Refunding. 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 section 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. 2. new text end

new text begin Appropriation reduction. new text end

new text begin The result of the sale of refunding bonds under
subdivision 1 is estimated to reduce the appropriation for fiscal years 2012 and 2013 under
Minnesota Statutes, section 16A.641, subdivision 10, by $60,000,000.
new text end

new text begin Subd. 3. new text end

new text begin Alternative reduction. new text end

new text begin To the extent that the sale of refunding bonds
in subdivision 1 does not reduce the appropriation from the general fund in Minnesota
Statutes, section 16A.641, subdivision 10, by $60,000,000, the commissioner of
management and budget must delay the issuance of general obligation bonds that have
been authorized but not yet issued to the extent that these delays, together with the result
of the refunding in subdivision 1, reduces the appropriation for fiscal years 2012 and 2013
under Minnesota Statutes, section 16A.641, subdivision 10, by $60,000,000.
new text end

new text begin Subd. 4. new text end

new text begin Effect of delay. new text end

new text begin Any delay in a capital investment project incurred as
a result of this section shall not be counted toward the four-year time limits set forth
in Minnesota Statutes, section 16A.642.
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