SF 377

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

  1.1                          A bill for an act 
  1.2             relating to education; providing for a district's 
  1.3             maximum debt service levy to remain at the rate used 
  1.4             at the time of a district consolidation or 
  1.5             combination; providing for the discharge of a capital 
  1.6             loan to independent school district No. 588, Askov, if 
  1.7             not repaid after 30 years; amending Minnesota Statutes 
  1.8             1994, section 124.431, subdivision 14. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1994, section 124.431, 
  1.11  subdivision 14, is amended to read: 
  1.12     Subd. 14.  [BOND SALE LIMITATIONS.] A district, except one 
  1.13  that has consolidated under section 122.23 or combined under 
  1.14  sections 122.241 to 122.248, having an outstanding state loan 
  1.15  must not issue and sell any bonds on the public market, except 
  1.16  to refund state loans, unless it agrees to make the maximum 
  1.17  effort debt service levy in each later year at the higher rate 
  1.18  provided in section 124.38, subdivision 7, and unless it 
  1.19  schedules the maturities of the bonds according to section 
  1.20  475.54, subdivision 2.  A district that has consolidated under 
  1.21  section 122.23 or combined under sections 122.241 to 122.248, 
  1.22  may issue bonds and may continue to make the maximum debt 
  1.23  service levy at the rate used at the time the consolidation or 
  1.24  combination occurred.  A district that refunds bonds at a lower 
  1.25  interest rate may continue to make the maximum effort debt 
  1.26  service levy in each later year at the current rate provided in 
  1.27  section 124.38, subdivision 7, if the district can demonstrate 
  2.1   to the commissioner's satisfaction that the district's 
  2.2   repayments of the state loan will not be reduced below the 
  2.3   previous year's level.  The district shall report each sale to 
  2.4   the commissioner of education. 
  2.5      After a district's capital loan has been outstanding for 20 
  2.6   years, the district must not issue bonds on the public market 
  2.7   except to refund the loan. 
  2.8      Sec. 2.  [ASKOV CAPITAL LOAN.] 
  2.9      The liability for the capital loan granted to independent 
  2.10  school district No. 588, Askov in 1982, if not repaid at the end 
  2.11  of 30 years, is satisfied and discharged and interest on the 
  2.12  loan ceases. 
  2.13     Sec. 3.  [EFFECTIVE DATE.] 
  2.14     Sections 1 and 2 are effective the day following final 
  2.15  enactment.