SF 543

2nd Engrossment - 90th Legislature (2017 - 2018) Posted on 08/09/2018 03:05pm

A bill for an act
relating to capital investment; modifying provisions of the Lewis and Clark
Regional Water System project; authorizing additional housing infrastructure
bonds; amending Minnesota Statutes 2016, sections 16A.967, subdivisions 2, 7;
462A.37, subdivisions 2a, 2b.

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

Section 1.

Minnesota Statutes 2016, section 16A.967, subdivision 2, is amended to read:

Subd. 2.

Authorization to issue appropriation bonds.

(a) Subject to the limitations of
this subdivision, the commissioner may sell and issue appropriation bonds of the state under
this section for public purposes as provided by law, including, in particular, the financing
of the land acquisition, design, engineering, and construction of facilities and infrastructure
necessary to complete the next phase of the Lewis and Clark Regional Water System project,
including completion of the pipeline to Magnolia, extension of the project to the
Lincoln-Pipestone Rural Water System connection near Adrian, and engineering, design,
and easement acquisition for the final phase of the project to Worthington. No bonds shall
be sold until the commissioner determines that a nonstate match of at least $9,000,000 is
committed to this project phase. Grant agreements entered into under this section must
provide for reimbursement to the state from any federal money provided for the project,
consistent with the Lewis and Clark Regional Water System, Inc., agreement.

(b) The appropriation bonds may be issued and sold only after the commissioner
determines that the construction and administration for work done on the project will comply
with (1) all federal requirements and regulations associated with the Lewis and Clark Rural
Water System Act of 2000, and (2) the cooperative agreement between the United States
Department of the Interior and the Lewis and Clark Regional Water System, Inc. Proceeds
of the appropriation bonds must be credited to a special appropriation Lewis and Clark bond
proceeds fund in the state treasury. All income from investment of the bond proceeds, as
estimated by the commissioner, is appropriated to the commissioner for the payment of
principal and interest on the appropriation bonds.

(c) Appropriation bonds may be sold and issued in amounts that, in the opinion of the
commissioner, are necessary to provide sufficient money, not to exceed $19,000,000 net of
costs of issuance, for the purposes as provided under paragraph (a), and pay debt service
including capitalized interest, costs of issuance, costs of credit enhancement, or make
payments under other agreements entered into under paragraph (e).

(d) Appropriation bonds may be issued in one or more issues or series on the terms and
conditions the commissioner determines to be in the best interests of the state, but the term
on any series of appropriation bonds may not exceed 25 years. The appropriation bonds of
each issue and series thereof shall be dated and bear interest, and may be includable in or
excludable from the gross income of the owners for federal income tax purposes.

(e) At the time of, or in anticipation of, issuing the appropriation bonds, and at any time
thereafter, so long as the appropriation bonds are outstanding, the commissioner may enter
into agreements and ancillary arrangements relating to the appropriation bonds, including
but not limited to trust indentures, grant agreements, lease or use agreements, operating
agreements, management agreements, liquidity facilities, remarketing or dealer agreements,
letter of credit agreements, insurance policies, guaranty agreements, reimbursement
agreements, indexing agreements, or interest exchange agreements. Any payments made
or received according to the agreement or ancillary arrangement shall be made from or
deposited as provided in the agreement or ancillary arrangement. The determination of the
commissioner included in an interest exchange agreement that the agreement relates to an
appropriation bond shall be conclusive.

(f) The commissioner may enter into written agreements or contracts relating to the
continuing disclosure of information necessary to comply with or facilitate the issuance of
appropriation bonds in accordance with federal securities laws, rules, and regulations,
including Securities and Exchange Commission rules and regulations in Code of Federal
Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants
with purchasers and holders of appropriation bonds set forth in the order or resolution
authorizing the issuance of the appropriation bonds, or a separate document authorized by
the order or resolution.

(g) The appropriation bonds are not subject to chapter 16C.

new text begin (h) Upon certification to the commissioner by the Lewis and Clark Joint Powers Board
that the bond sale authorization provided in paragraph (c) has fully met the needs of the
project described in paragraph (a), and to the extent there is additional authorization
remaining, this authorization is also available for land acquisition, design, engineering, and
construction of facilities and infrastructure necessary for Phase 3 of the Lewis and Clark
Regional Water System project. Phase 3 includes extension of the project from the
Lincoln-Pipestone Rural Water System connection near Adrian to Worthington, construction
of a reservoir in Nobles County and a meter building in Worthington, and acquisition and
installation of a supervisory control and data acquisition system.
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.

Minnesota Statutes 2016, section 16A.967, subdivision 7, is amended to read:

Subd. 7.

Appropriation of proceeds.

The proceeds of appropriation bonds and interest
credited to the special appropriation Lewis and Clark bond proceeds fund are appropriated
new text begin as follows: (1) new text end to the deleted text begin commissioner deleted text end new text begin Public Facilities Authority new text end for new text begin a grant or grants to the
Lewis and Clark Joint Powers Board for new text end payment of capital expenses for the purposes
provided by subdivision 2, paragraph (a), new text begin and paragraph (h); and (2) to the commissioner
for new text end debt service on the bonds including capitalized interest, nonsalary costs of issuance of
the bonds, costs of credit enhancement of the bonds and payments under any agreements
entered into under subdivision 2, paragraph (e), each as permitted by state and federal law deleted text begin ,
and such proceeds may be granted, loaned, or otherwise provided for the public purposes
provided by subdivision 2, paragraph (a) deleted 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.

Minnesota Statutes 2016, section 462A.37, subdivision 2a, is amended to read:

Subd. 2a.

Additional authorization.

In addition to the amount authorized in subdivision
2, the agency may issue up to deleted text begin $80,000,000 deleted text end new text begin $94,025,000 new text end of housing infrastructure bonds in
one or more series to which the payments made under this section may be pledged.

Sec. 4.

Minnesota Statutes 2016, section 462A.37, subdivision 2b, is amended to read:

Subd. 2b.

Additional authorization.

In addition to the amount authorized in subdivisions
2 and 2a, the agency may issue up to deleted text begin $10,000,000 deleted text end new text begin $12,475,000 new text end of housing infrastructure
bonds in one or more series to which the payments made under this section may be pledged.