SF 1224

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

  1.1                          A bill for an act 
  1.2             relating to the financing of state government; 
  1.3             authorizing the issuance of revenue bonds and the 
  1.4             appropriation of bond proceeds to pay a judgment; 
  1.5             appropriating net proceeds of the lottery and health 
  1.6             care reimbursement revenues for payment of debt 
  1.7             service; amending Minnesota Statutes 1994, sections 
  1.8             246.18, subdivision 4, and by adding subdivisions; and 
  1.9             349A.10, subdivision 5; proposing coding for new law 
  1.10            in Minnesota Statutes, chapter 16A. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  [16A.67] [JUDGMENT BONDS.] 
  1.13     Subdivision 1.  [AUTHORIZATION.] The commissioner of 
  1.14  finance, upon request of the governor, is authorized to sell and 
  1.15  issue state bonds to fund the judgment rendered against the 
  1.16  state by the Minnesota supreme court in Cambridge State Bank et. 
  1.17  al. v. James, 514 N.W. 2d 565, on April 1, 1994, and interest 
  1.18  accrued thereon to fund any bond reserve determined to be 
  1.19  necessary, and to pay costs of issuance of the bonds.  The 
  1.20  proceeds of the bonds are appropriated for these purposes.  The 
  1.21  principal amount of the bonds shall not exceed $400,000,000.  
  1.22  The bonds shall be sold and issued upon such terms and in such 
  1.23  manner as the commissioner shall determine to be in the best 
  1.24  interests of the state.  The final maturity of the bonds shall 
  1.25  be not later than June 30, 2005. 
  1.26     Subd. 2.  [SECURITY; BONDS NOT PUBLIC DEBT.] The bonds and 
  1.27  the interest thereon shall be payable solely from and secured by 
  1.28  the revenues appropriated to the debt service fund established 
  2.1   for this purpose in subdivision 3 and investment income thereon, 
  2.2   and any bond reserve established for the bonds.  The bonds are 
  2.3   not public debt, and the full faith, credit, and taxing powers 
  2.4   of the state are not pledged for their payment.  The bonds and 
  2.5   the interest thereon shall not be paid, directly or indirectly, 
  2.6   in whole or in part, from a tax of statewide application on any 
  2.7   class of property, income, transaction, or privilege. 
  2.8      Subd. 3.  [DEBT SERVICE FUND.] There is established in the 
  2.9   state treasury a separate and special debt service fund.  There 
  2.10  shall be credited to the fund net proceeds of the lottery in 
  2.11  accordance with section 349A.10, subdivision 5, money received 
  2.12  for payment or reimbursement of health care costs in accordance 
  2.13  with section 246.18, subdivision 7, and investment income 
  2.14  thereon.  Money appropriated to the fund and investment income 
  2.15  thereon on hand or required to be credited to the fund shall be 
  2.16  used and are irrevocably appropriated for the payment of the 
  2.17  principal of and interest on the bonds when due.  
  2.18     Subd. 4.  [COVENANTS; AGREEMENTS.] The commissioner may, 
  2.19  for and on behalf of the state, enter into such covenants and 
  2.20  agreements not inconsistent with subdivisions 1 to 3 and 
  2.21  sections 246.18, subdivisions 4 and 6; and 349A.10, subdivision 
  2.22  5, as may be necessary or desirable to facilitate the sale and 
  2.23  issuance of the bonds on terms favorable to the state, 
  2.24  including, but not limited to, covenants and agreements relating 
  2.25  to the payment of and security for the bonds, tax-exemption, and 
  2.26  disclosure of information required by federal and state 
  2.27  securities laws.  Such covenants may include covenants to 
  2.28  continue to operate the state lottery and to continue to seek 
  2.29  payment by and reimbursement from nonstate sources of health 
  2.30  care costs so long as any bonds issued pursuant to this section 
  2.31  are outstanding.  The provisions of sections 16A.672 and 16A.675 
  2.32  are applicable to the bonds. 
  2.33     Sec. 2.  Minnesota Statutes 1994, section 246.18, 
  2.34  subdivision 4, is amended to read: 
  2.35     Subd. 4.  [COLLECTIONS DEPOSITED IN THE GENERAL FUND.] 
  2.36  Except as provided in subdivisions 2 and 5, 6, and 7, all 
  3.1   receipts from collection efforts for the regional treatment 
  3.2   centers, state nursing homes, and other state facilities as 
  3.3   defined in section 246.50, subdivision 3, must be deposited in 
  3.4   the general fund.  The commissioner shall ensure that the 
  3.5   departmental financial reporting systems and internal accounting 
  3.6   procedures comply with federal standards for reimbursement for 
  3.7   program and administrative expenditures and fulfill the purpose 
  3.8   of this paragraph. 
  3.9      Sec. 3.  Minnesota Statutes 1994, section 246.18, is 
  3.10  amended by adding a subdivision to read: 
  3.11     Subd. 6.  [COLLECTIONS DEDICATED.] Except for 
  3.12  state-operated programs and services funded through a direct 
  3.13  appropriation from the legislature, money received within the 
  3.14  regional treatment center system for the following 
  3.15  state-operated services is dedicated to the commissioner for the 
  3.16  provision of those services: 
  3.17     (1) community-based residential and day training and 
  3.18  habilitation services for mentally retarded persons; 
  3.19     (2) community health clinic services; 
  3.20     (3) accredited hospital outpatient department services; 
  3.21     (4) certified rehabilitation agency and rehabilitation 
  3.22  hospital services; or 
  3.23     (5) community-based transitional support services for 
  3.24  adults with serious and persistent mental illness. 
  3.25     This money must be deposited in the state treasury in a 
  3.26  revolving account and money in the revolving account is 
  3.27  appropriated to the commissioner to operate the services 
  3.28  authorized.  Any unexpended balances do not cancel but are 
  3.29  available until spent. 
  3.30     Sec. 4.  Minnesota Statutes 1994, section 246.18, is 
  3.31  amended by adding a subdivision to read: 
  3.32     Subd. 7.  [USE OF CERTAIN REIMBURSEMENT FUNDS.] Except as 
  3.33  provided in subdivisions 2, 5, and 6, and unless otherwise 
  3.34  required by federal law, during any period in which bonds are 
  3.35  issued and outstanding under section 16A.67, all money received 
  3.36  from the federal government or other nonstate source for payment 
  4.1   or reimbursement of health care costs incurred at regional 
  4.2   treatment centers, state nursing homes, and other state 
  4.3   facilities as defined in section 246.50, subdivision 3, must be 
  4.4   credited to a separate and special fund in the state treasury.  
  4.5   Money credited to the special fund must be credited to the debt 
  4.6   service fund established in section 16A.67 at the times and in 
  4.7   the amounts determined by order of the commissioner of finance 
  4.8   to be necessary to provide for the payment and security of bonds 
  4.9   issued pursuant to section 16A.67.  On or after the tenth day of 
  4.10  each month, any money in the special fund not required to be 
  4.11  credited to the debt service fund must be credited to the 
  4.12  general fund. 
  4.13     Sec. 5.  Minnesota Statutes 1994, section 349A.10, 
  4.14  subdivision 5, is amended to read: 
  4.15     Subd. 5.  [DEPOSIT OF NET PROCEEDS.] Within 30 days after 
  4.16  the end of each month, the director shall deposit in the state 
  4.17  treasury the net proceeds of the lottery, which is the balance 
  4.18  in the lottery fund after transfers to the lottery prize fund 
  4.19  and credits to the lottery operations account.  Of the net 
  4.20  proceeds, (1) 40 percent must be credited to the Minnesota 
  4.21  environment and natural resources trust fund, (2) an amount 
  4.22  determined by order of the commissioner of finance to be 
  4.23  necessary to provide for the payment and security of bonds 
  4.24  issued pursuant to section 16A.67 must be credited to the debt 
  4.25  service fund established in section 16A.67, and (3) the 
  4.26  remainder must be credited to the general fund. 
  4.27     Sec. 6.  [EFFECTIVE DATE.] 
  4.28     Sections 1 to 5 are effective the day following final 
  4.29  enactment.