SF 3343

as introduced - 89th Legislature (2015 - 2016) Posted on 03/31/2016 09:14am

A bill for an act
relating to capital investment; establishing a debt limit; amending Minnesota
Statutes 2014, section 16A.105.

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

Section 1.

Minnesota Statutes 2014, section 16A.105, is amended to read:

16A.105 DEBT CAPACITY FORECAST; LIMIT.

Subdivision 1.

Forecast.

In February and November of each year the commissioner
shall prepare a debt capacity forecast to be delivered to the governor and legislature
according to section 16A.103, subdivision 1. The debt capacity forecast must include
statements of the indebtedness of the state for bonds, notes, and other forms of long-term
general obligation indebtedness. The forecast must show the actual amount of the debt
service for at least the past two completed fiscal years, and the estimated amount for the
current fiscal year and the next six fiscal years, the debt authorized and unissued, and the
borrowing capacity for the next six fiscal years. The forecast must include the debt limit
determined under subdivision 2.

Subd. 2.

Debt limit.

(a) For the purposes of this subdivision, "debt" means state
debt payable from nondedicated state general fund revenues, including:

(1) state general obligation bonds payable from the general fund;

(2) state appropriation bonds;

(3) agency appropriation bonds payable from a statutory appropriation from the
general fund or other debt issued by the state, a state agency, or the University of
Minnesota, payable from a statutory appropriation of general fund money;

(4) state certificates of participation; and

(5) state lease-purchase financing for acquisition of real estate or equipment payable
from the general fund.

(b) The debt limit established in this subdivision applies in addition to any other
guideline adopted or used by the commissioner to prudently manage debt in the state's
best interests.

(c) The commissioner shall determine the debt limit so that payment due on all
outstanding debt is no more than 3.35 percent of the nondedicated general fund revenue
received by the state during the same fiscal year.

EFFECTIVE DATE.

This section applies to the sale and issuance of debt by the
state on or after July 1, 2017.