SF 3266

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 05/19/2022 09:21am

A bill for an act
relating to state government finance; adjusting the calculation for the stadium
general reserve account; requiring the commissioner of management and budget
to notify the legislature before making changes to the stadium general reserve
account; establishing a stadium refinance fund; transferring money; requiring the
stadium refinance fund balance be used to redeem or defease the stadium
appropriation bonds; proposing coding for new law in Minnesota Statutes, chapter
16A.

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

Section 1.

new text begin [16A.728] STADIUM REFINANCE FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of fund. new text end

new text begin The commissioner of management and budget shall
establish the stadium refinance fund in the state treasury.
new text end

new text begin Subd. 2. new text end

new text begin Refinance supplement transfer. new text end

new text begin (a) If on the basis of a final closing balance
for the general fund for a fiscal year, the amount of the general reserve account under section
297E.021, subdivision 4, exceeds the greater of the stadium-related expenses under section
297E.021, subdivision 3, clause (1), or $44,000,000, the commissioner shall certify a
refinance supplement in the general reserve account. The refinance supplement is equal to
the difference between the general reserve account at the final closing of a fiscal year and
the greater of the stadium-related expenses, or $44,000,000.
new text end

new text begin (b) By October 1 of each year, the commissioner shall transfer the refinance supplement
computed under paragraph (a) to the stadium refinance fund.
new text end

new text begin Subd. 3. new text end

new text begin Use of fund. new text end

new text begin (a) After the date that the appropriation bonds under section
16A.695 become callable, the commissioner must use the amount in the fund to redeem or
defease outstanding debt for the stadium appropriation bonds under section 16A.965, to the
extent permitted by the bond contract. The money in the fund is appropriated only for this
purpose. Notwithstanding sections 16A.66 and 16A.965, refunding bonds issued after
redeeming outstanding debt for the stadium defined in section 473J.03, subdivision 8, that
use money from the stadium refinance fund, may be issued without regard to whether the
interest to be paid on the bonds is includable in gross income for federal tax purposes.
new text end

new text begin (b) After consulting with the Legislative Advisory Commission, the commissioner may
transfer balances in the stadium refinance fund to the general fund to offset a shortfall in
revenue collected under section 297A.994.
new text end

new text begin Subd. 4. new text end

new text begin Investment of funds. new text end

new text begin The commissioner of management and budget shall
coordinate with the State Board of Investment to ensure that the balance in the stadium
refinance fund is invested in a manner that does not generate any penalties under section
148 of the federal Internal Revenue Code of 1986.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin By October 15, 2022, and each year thereafter, the commissioner of
management and budget must analyze and report to the legislature on the use of the money
in the stadium refinance fund and the amount of the actual and projected refinance balance
transfers from the general reserve account. The report shall analyze when the money in the
stadium refinance fund will be used to redeem or defease the outstanding debt on the stadium
appropriation bonds under section 16A.965. The report must be provided to the chairs and
ranking minority members of the house of representatives Committee on Ways and Means
and Taxes Committee, and the chairs and ranking minority members of the senate Finance
Committee and Taxes Committee.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin REFINANCED BONDS; REDUCED PAYMENTS.
new text end

new text begin If the original bonds issued under Minnesota Statutes, section 16A.965, are refunded,
the legislature should consult with the commissioner of management and budget and consider
reducing payments required by the city of Minneapolis under Minnesota Statutes, section
297A.994, subdivision 4, to reflect any reduced payments that the state of Minnesota must
make for new bonds issued for the same purpose.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3. new text begin CONDITIONAL REPEALER.
new text end

new text begin (a) The commissioner of management and budget shall notify the revisor of statutes
within 30 days of the certification under paragraph (b), that the bonds under Minnesota
Statutes, section 16A.965, have been redeemed or defeased.
new text end

new text begin (b) Minnesota Statutes, section 16A.727, is repealed 60 days after the commissioner of
management and budget certifies that the bonds under Minnesota Statutes, section 16A.965,
have been redeemed or defeased.
new text end