SF 162

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to community colleges; authorizing the state 
  1.3             board to construct or acquire student residences; 
  1.4             authorizing revenue bonds.  
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [ITASCA COMMUNITY COLLEGE STUDENT HOUSING.] 
  1.7      The state board for community colleges or its successor may 
  1.8   acquire an existing facility or a site; and construct, own, 
  1.9   operate, furnish, and maintain one or more dormitories or other 
  1.10  student residence facilities at Grand Rapids for the use and 
  1.11  benefit of Itasca Community College.  Selection of a designer 
  1.12  for the project is not subject to Minnesota Statutes, section 
  1.13  16B.33, subdivision 4.  The higher education facilities 
  1.14  authority or its successor may issue revenue bonds or other 
  1.15  financial instruments for the facilities under Minnesota 
  1.16  Statutes, sections 136A.25 to 136A.42, and the state board for 
  1.17  community colleges or its successor may borrow the proceeds of 
  1.18  the revenue bonds or other financial instruments to finance the 
  1.19  acquisition, construction, and equipping of the student housing 
  1.20  facilities.  The board may enter into agreements and pledge 
  1.21  revenues of the facilities as may be necessary to provide 
  1.22  security for the bonds and may mortgage the financed facilities 
  1.23  to the higher education facilities authority or to a trustee for 
  1.24  the bondholders if considered necessary by the board or the 
  1.25  authority for the successful marketing of the bonds.  The state 
  2.1   board for community colleges or its successor shall establish, 
  2.2   maintain, revise when necessary, and collect rates and charges 
  2.3   for the use of the student housing facilities.  The rates and 
  2.4   charges must be sufficient, as estimated by the board, to pay 
  2.5   all expenses of operation and maintenance of the facilities, to 
  2.6   pay principal of, and interest on, revenue bonds or other 
  2.7   obligations or instruments when due and to pay customary fees 
  2.8   and charges of the higher education facilities authority and to 
  2.9   establish and maintain the reserve funds that the board 
  2.10  considers necessary for repair, replacement, and maintenance of 
  2.11  the facilities.  Funds and accounts established in furtherance 
  2.12  of these purposes are not subject to Minnesota Statutes, section 
  2.13  136.67, subdivision 2, or its successor provision and are not 
  2.14  subject to the budgetary control of the commissioner of 
  2.15  finance.  The board or its successor shall never be obligated to 
  2.16  use other revenues of the board or its successor or funds of the 
  2.17  state to pay the costs of construction, operation, maintenance, 
  2.18  and repair of the facilities or to pay principal of and interest 
  2.19  on obligations issued for these purposes.  The city of Grand 
  2.20  Rapids may, without complying with the procedures set forth in 
  2.21  Minnesota Statutes, chapter 475, guarantee all or any part of 
  2.22  the loan repayment obligation of the board or its successor to 
  2.23  the authority or its successor, by pledging its full faith and 
  2.24  credit and taxing power.  The guarantee is not subject to any 
  2.25  limitation on net debt of the city, and taxes required to make 
  2.26  any payment under the guarantee may be levied without limit as 
  2.27  to rate or amount.