SF 1016

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:18am

A bill for an act
relating to capital investment; authorizing the sale of Minnesota First bonds;
appropriating money; proposing coding for new law in Minnesota Statutes,
chapter 16A.

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

Section 1.

[16A.6455] MINNESOTA FIRST BONDS.

Subdivision 1.

Program established.

The commissioner of finance may establish
the Minnesota First bond program to encourage individuals to invest in state general
obligation bonds. The program consists of:

(1) issuing a portion of the state general obligation bonds in current interest bond
form and in denominations and maturities that will be attractive to individuals; and

(2) developing a program for marketing the bonds to investors.

Subd. 2.

Denominations.

The commissioner shall determine the appropriate
denominations and maturities for the Minnesota First bonds. It is the intent of the
legislature to make bonds available in as small denominations as is feasible given the
costs of marketing and administering the bond issue. Minimum denominations of $1000
must be made available. The minimum denomination bonds need not be made available
for bonds of all maturities. For purposes of this section, "denomination" means the
compounded maturity amount of the bond.

Subd. 3.

Direct sale permitted.

The commissioner may sell any series of savings
bonds directly to the public or to financial institutions for prompt resale to the public
upon the terms and conditions and the restrictions the commissioner prescribes. The
commissioner may enter into all contracts deemed necessary or desirable to accomplish
the sale in a cost-effective manner including a private or negotiated sale, but the
commissioner may contract for investment banking and banking services only after
receiving competitive proposals for the services.

Subd. 4.

Marketing plan.

The commissioner shall develop a plan for marketing
Minnesota First bonds. The plan must include strategies to:

(1) inform the public about the availability of the bonds;

(2) take orders for the bonds;

(3) target the sale of the bonds to Minnesota residents; and

(4) market the bonds at the lowest cost to the state.

Sec. 2. APPROPRIATION.

$20,000 for fiscal year 2010 and $20,000 for fiscal year 2011 are appropriated from
the general fund to the commissioner of finance for the purposes of section 1.