2nd Engrossment - 89th Legislature (2015 - 2016) Posted on 05/11/2016 02:58pm
Engrossments | ||
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Introduction | Posted on 03/14/2016 | |
1st Engrossment | Posted on 04/11/2016 | |
2nd Engrossment | Posted on 05/09/2016 |
A bill for an act
relating to capital investment; establishing a debt limit; amending Minnesota
Statutes 2014, section 16A.105.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2014, section 16A.105, is amended to read:
In February and November of each year the commissioner
shall prepare a debt capacity forecast to be delivered to the governor and legislature
according to section 16A.103, subdivision 1. The debt capacity forecast must include
statements of the indebtedness of the state for bonds, notes, and other forms of long-term
general obligation indebtedness. The forecast must show the actual amount of the debt
service for at least the past two completed fiscal years, and the estimated amount for the
current fiscal year and the next six fiscal years, the debt authorized and unissued, and the
borrowing capacity for the next six fiscal years.new text begin The forecast must include the debt limit
determined under subdivision 2.
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(a) For the purposes of this subdivision, "debt" means state
debt payable from nondedicated state general fund revenues, including:
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(1) state general obligation bonds payable from the general fund;
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(2) state appropriation bonds;
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(3) agency appropriation bonds payable from a statutory appropriation from the
general fund or other debt issued by the state, a state agency, or the University of
Minnesota, payable from a statutory appropriation of general fund money;
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(4) state certificates of participation; and
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(5) state lease-purchase financing for acquisition of real estate or equipment payable
from the general fund.
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(b) The debt limit established in this subdivision applies in addition to any other
guideline adopted or used by the commissioner to prudently manage debt in the state's
best interests.
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(c) For each forecast under subdivision 1, the commissioner shall determine the
maximum amount of new debt that may be issued so that payment due on all outstanding
debt is no more than 3.5 percent of the estimated nondedicated general fund revenue
received by the state for the same time periods. The debt limit in this subdivision may
only be used to limit authorization of new debt after the forecast that indicates the limit
will be exceeded and does not require either reduction in previously authorized debt
or cancellation of appropriations.
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This section applies to the sale and issuance of debt by the
state on or after July 1, 2017.
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