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HF 2970

2nd Engrossment - 89th Legislature (2015 - 2016) Posted on 05/11/2016 02:58pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Introduction Posted on 03/14/2016
1st Engrossment Posted on 04/11/2016
2nd Engrossment Posted on 05/09/2016

Current Version - 2nd Engrossment

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


Section 1.

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

16A.105 DEBT CAPACITY FORECASTnew text begin ; LIMITnew text end .

new text begin Subdivision 1. new text end

new text begin Forecast. new text end

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 text begin The forecast must include the debt limit
determined under subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Debt limit. new text end

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

new text begin (1) state general obligation bonds payable from the general fund;
new text end

new text begin (2) state appropriation bonds;
new text end

new text begin (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;
new text end

new text begin (4) state certificates of participation; and
new text end

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

new text begin (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.
new text end

new text begin (c) For each forecast under subdivision 1, the commissioner shall determine the
maximum amount of new debt that may be issued so that payment due on all outstanding
debt is no more than 3.5 percent of the estimated nondedicated general fund revenue
received by the state for the same time periods. The debt limit in this subdivision may
only be used to limit authorization of new debt after the forecast that indicates the limit
will be exceeded and does not require either reduction in previously authorized debt
or cancellation of appropriations.
new text end

new text begin EFFECTIVE DATE. new text end

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