SF 63

as introduced - 91st Legislature (2019 - 2020) Posted on 01/17/2019 02:43pm

A bill for an act
relating to state government; prohibiting use of money in environment and natural
resources trust fund for payment of debt service on bonds; amending Minnesota
Statutes 2018, sections 16A.969, subdivision 2; 116P.08, subdivisions 1, 2.

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

Section 1.

Minnesota Statutes 2018, section 16A.969, subdivision 2, is amended to read:

Subd. 2.

Authorization to issue appropriation bonds; accounts.

(a) Subject to the
limitations of this subdivision, the commissioner may sell and issue appropriation bonds of
the state under this section for public purposes and in amounts as provided by deleted text begin law deleted text end new text begin Laws
2018, chapter 214 new text end . This authorization meets the public purposes established by the Minnesota
Constitution, article XI, section 14, and chapter 116P and shall be a supplement to the
traditional sources of funding for environment and natural resources activities.

(b) The special appropriation trust fund bond proceeds fund is established in the state
treasury. Proceeds of the appropriation bonds issued and sold must be credited to the special
appropriation trust fund bond proceeds fund. A bond payments account is established in
the special appropriation trust fund bond proceeds fund. All income from investment of the
bond proceeds, as estimated by the commissioner, must be deposited into the account and
is appropriated to the commissioner for the payment of principal and interest on the
appropriation bonds.

(c) Appropriation bonds may be issued in one or more issues or series on the terms and
conditions the commissioner determines to be in the best interests of the state, but the term
on any series of appropriation bonds may not exceed 20 years. The appropriation bonds of
each issue and series thereof shall be dated and bear interest, and may be includable in or
excludable from the gross income of the owners for federal income tax purposes.

(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any time
thereafter, so long as the appropriation bonds are outstanding, the commissioner may enter
into agreements and ancillary arrangements relating to the appropriation bonds, including
but not limited to trust indentures, grant agreements, lease or use agreements, operating
agreements, management agreements, liquidity facilities, remarketing or dealer agreements,
letter of credit agreements, insurance policies, guaranty agreements, reimbursement
agreements, indexing agreements, or interest exchange agreements. Any payments made
or received according to the agreement or ancillary arrangement shall be made from or
deposited as provided in the agreement or ancillary arrangement. The determination of the
commissioner included in an interest exchange agreement that the agreement relates to an
appropriation bond shall be conclusive.

(e) The commissioner may enter into written agreements or contracts relating to the
continuing disclosure of information necessary to comply with or facilitate the issuance of
appropriation bonds in accordance with federal securities laws, rules, and regulations,
including Securities and Exchange Commission rules and regulations in Code of Federal
Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants
with purchasers and holders of appropriation bonds set forth in the order or resolution
authorizing the issuance of the appropriation bonds, or a separate document authorized by
the order or resolution.

(f) The appropriation bonds are not subject to chapter 16C.

Sec. 2.

Minnesota Statutes 2018, section 116P.08, subdivision 1, is amended to read:

Subdivision 1.

Expenditures.

(a) Money in the trust fund may be spent only for:

(1) the reinvest in Minnesota program as provided in section 84.95, subdivision 2;

(2) research that contributes to increasing the effectiveness of protecting or managing
the state's environment or natural resources;

(3) collection and analysis of information that assists in developing the state's
environmental and natural resources policies;

(4) enhancement of public education, awareness, and understanding necessary for the
protection, conservation, restoration, and enhancement of air, land, water, forests, fish,
wildlife, and other natural resources;

(5) capital projects for the preservation and protection of unique natural resources;

(6) activities that preserve or enhance fish, wildlife, land, air, water, and other natural
resources that otherwise may be substantially impaired or destroyed in any area of the state;

(7) administrative and investment expenses incurred by the State Board of Investment
in investing deposits to the trust fund; new text begin and
new text end

(8) administrative expenses subject to the limits in section 116P.09 deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (9) to pay principal and interest on special appropriation trust fund bonds issued pursuant
to section 16A.969 and other law.
deleted text end

(b) In making recommendations for expenditures from the trust fund, the commission
shall give priority to funding programs and projects under paragraph (a), clauses (1) and
(6). Any requests for proposals issued by the commission shall clearly indicate these
priorities.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to bonds or other debt instruments authorized to be sold on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2018, section 116P.08, subdivision 2, is amended to read:

Subd. 2.

Exceptions.

Money from the trust fund may not be spent for:

(1) purposes of environmental compensation and liability under chapter 115B and
response actions under chapter 115C;

(2) purposes of municipal water pollution control in municipalities with a population of
5,000 or more under the authority of chapters 115 and 116;

(3) costs associated with the decommissioning of nuclear power plants;

(4) hazardous waste disposal facilities;

(5) solid waste disposal facilities; deleted text begin or
deleted text end

(6) projects or purposes inconsistent with the strategic plan deleted text begin . deleted text end new text begin ; or
new text end

new text begin (7) payment of principal or interest on bonds or other debt instruments.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to bonds or other debt instruments authorized to be sold on or after that date.
new text end