SF 2718

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to capital investment; modifying the distribution of sale proceeds
when state bond financed property is sold; amending Minnesota Statutes 2007
Supplement, section 16A.695, subdivision 3.

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

Section 1.

Minnesota Statutes 2007 Supplement, section 16A.695, subdivision 3,
is amended to read:

Subd. 3.

Sale of property.

new text begin (a) new text end A public officer or agency shall not sell any state
bond financed property unless the public officer or agency determines by official action
that the property is no longer usable or needed by the public officer or agency to carry
out the governmental program for which it was acquired or deleted text begin constructed deleted text end new text begin bettered new text end , the
sale is made as authorized by law, the sale is made for fair market value, and the sale is
approved by the commissioner.

new text begin (b) new text end If any state bonds issued to purchase or better the state bond financed property
that is sold remain outstanding on the date of sale, the net proceeds of sale must be
applied as follows:

(1) if the state bond financed property was acquired and bettered solely with state
bond proceeds, the net proceeds of sale must be paid to the commissioner and deposited
in the state treasury; or

(2) if the state bond financed property was acquired or bettered partly with state
bond proceeds and partly with other money, the net proceeds of sale must be used:
first, to pay to the state the amount of state bond proceeds used to acquire or better the
property; second, to pay in full any outstanding public or private debt incurred to acquire
or better the property; third, to pay interested public and private entities, other than any
public officer or agency or any private lender already paid in full, the amount of money
contributed to the acquisition or betterment of the property; and fourth, any excess over the
amount needed for those purposes must be divided in proportion to the shares contributed
to the acquisition or betterment of the property and paid to the interested public and
private entities, other than any private lender already paid in full, and the proceeds are
appropriated for this purpose. In calculating the share contributed by each entity, the
amount to be attributed to the owner of the property shall be the fair market value of the
property that was bettered by state bond proceeds at the time the betterment began.

new text begin (c) If no state bonds issued to purchase or better the state bond financed property
that is sold remain outstanding on the date of sale, the net proceeds of the sale must be
applied as provided in paragraph (b) except as provided in this paragraph. If the state
bond financed property was acquired or bettered partly with state bond proceeds and
partly with other money and was owned and directly operated and managed by a political
subdivision, the net proceeds of the sale must be paid to the political subdivision and
are appropriated for that purpose.
new text end

new text begin (d) new text end When all of the net proceeds of sale have been applied as provided in this
subdivision, this section no longer applies to the property.