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HF 918

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:42am

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

Bill Text Versions

Engrossments
Introduction Posted on 02/18/2009

Current Version - as introduced

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A bill for an act
relating to capital investment; amending certain general obligation bond sale
provisions; amending Minnesota Statutes 2008, sections 16A.641, subdivisions
4, 7; 16A.66, subdivision 2.

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

Section 1.

Minnesota Statutes 2008, section 16A.641, subdivision 4, is amended to
read:


Subd. 4.

Sale and issuance.

State bonds deleted text begin mustdeleted text end new text begin maynew text end be sold and issued deleted text begin upon
competitive bids
deleted text end new text begin at public or private salenew text end in the manner and on the terms and conditions
determined by the commissioner in accordance with the laws authorizing them and
subject to the approval of the attorney general, but not subject to chapter 14, including
section 14.386. For each series, in addition to provisions required by subdivision 3, the
commissioner may determine:

(1) the time, place, and new text begin form of new text end notice of sale deleted text begin anddeleted text end new text begin for competitive bids and requests
for proposals for negotiated sales;
new text end

new text begin (2)new text end method of comparing bids;

deleted text begin (2)deleted text end new text begin (3)new text end the price, not less than par for highway bonds;

deleted text begin (3)deleted text end new text begin (4)new text end the principal amount and date of issue;

deleted text begin (4)deleted text end new text begin (5)new text end the interest rates and payment dates;

deleted text begin (5)deleted text end new text begin (6)new text end the maturity amounts and dates, not more than 20 years from the date of
issue, subject to subdivision 5;

deleted text begin (6)deleted text end new text begin (7)new text end the terms, if any, on which the bonds may or must be redeemed before
maturity, including notice, times, and redemption prices; and

deleted text begin (7)deleted text end new text begin (8)new text end the form of the bonds and the method of execution, delivery, payment,
registration, conversion, and exchange, in accordance with section 16A.672.

Sec. 2.

Minnesota Statutes 2008, section 16A.641, subdivision 7, is amended to read:


Subd. 7.

Credit of proceeds.

(a) Proceeds of bonds issued under each law must be
credited by the commissioner to a special fund, as provided in this subdivision.

(b) Accrued interest deleted text begin and any premiumdeleted text end received on sale of the bonds must be credited
to the state bond fund created by the Constitution, article XI, section 7.new text begin Premium received
on the sale of the bonds must be credited either to the state bond fund or to the bond
proceeds fund where it is used to reduce the par amount of the bonds issued. Premium
may only be credited to the bond proceeds fund and used to reduce the par amount if it
does not cause an increase in the general fund debt service transfer for the biennium
during which the bonds are sold, as estimated by the commissioner.
new text end

(c) Except as otherwise provided by law, proceeds of state bonds issued under the
Constitution, article XI, section 5, clause (a), must be credited to the bond proceeds fund
established by section 16A.631.

(d) Proceeds of state highway bonds must be credited to the trunk highway fund
under the Constitution, article XIV, section 6.

(e) Proceeds of bonds issued for programs of grants or loans to political subdivisions
must be credited to special accounts in the bond proceeds fund or to special funds
established by laws stating the purposes of the grants or loans, and the standards and
criteria under which an executive agency is authorized to make them.

(f) Proceeds of refunding bonds must be credited to the state bond fund as provided
in section 16A.66, subdivision 1.

(g) Proceeds of other bonds must be credited as provided in the law authorizing
their issuance.

Sec. 3.

Minnesota Statutes 2008, section 16A.66, subdivision 2, is amended to read:


Subd. 2.

Special provisions for sale and issuance.

Refunding bonds may be sold
deleted text begin publiclydeleted text end new text begin at public or private salenew text end , or directly to the State Board of Investment without
bids, or may be exchanged for bonds refunded by agreement with their holders. The
refunding bonds must be prepared, executed, delivered, and secured in the same way as
the refunded bonds. The proceeds of refunding bonds may be deposited, invested, and
applied to accomplish the refunding as provided in section 475.67, subdivisions 5 to
10new text begin and 13new text end
. The interest rate on refunding bonds may exceed that on the refunded bonds
if the purpose of refunding is to extend the maturities and to reduce the amount needed
annually to pay and to secure the debt.

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective the day following final enactment.
new text end