Minnesota Session Laws - 1991, Regular Session

  

                         Laws of Minnesota 1991 

                         CHAPTER 45-H.F.No. 73 
           An act relating to education; changing requirements 
          for transfers within the maximum effort school loan 
          fund; eliminating the deduction for one year's 
          interest payments from the proceeds of state bonds for 
          maximum effort school loans; validating construction 
          contracts entered into by independent school district 
          No. 484, Pierz; amending Minnesota Statutes 1990, 
          sections 124.39, subdivisions 3 and 5; 124.40, 
          subdivision 1; 124.46, subdivision 3; and 124.477. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1990, section 124.39, 
subdivision 3, is amended to read: 
    Subd. 3.  There shall be a capital loan account, out of 
which loans under section 124.431 shall be made.  There shall be 
transferred to it from the debt service loan account on October 
November 1 of each year all moneys therein in excess of those 
required for debt service loans then agreed to be made.  There 
shall be transferred from it to the debt service loan account on 
July 1 of each year all moneys therein in excess of those 
required for capital loans theretofore agreed to be made.  
    Sec. 2.  Minnesota Statutes 1990, section 124.39, 
subdivision 5, is amended to read: 
    Subd. 5.  All money deposited to the credit of the loan 
repayment account and not required for the payment of principal 
and interest and costs as prescribed in subdivision 4 shall be 
transferred The commissioner shall transfer from the loan 
repayment account to the credit of the debt service loan account 
on July November 1 of each year all money deposited to the 
credit of the loan repayment account that will not be required 
for the payment of principal and interest and costs as 
prescribed in subdivision 4 but that will be needed for debt 
service loans in the fiscal year beginning July 1, and those 
moneys are annually appropriated to that account for the 
purposes prescribed by the maximum effort school aid law; except 
that the commissioner may retain in the loan repayment account 
any amount which the commissioner estimates will not be needed 
for loans in the fiscal year commencing July 1.  Money deposited 
to the credit of the loan repayment account and not required for 
the transfers or for the payment of principal and interest due 
on school loan bonds may be invested and reinvested in 
securities which are general obligations of the United States or 
the state of Minnesota.  When all school loan bonds have been 
fully paid with interest accrued thereon, the balance remaining 
in the account shall be transferred to the state bond fund. 
     Sec. 3.  Minnesota Statutes 1990, section 124.40, 
subdivision 1, is amended to read: 
    Subdivision 1.  There is hereby appropriated to the fund, 
in addition to all sums which have been or may hereafter be 
appropriated thereto by any law, the net proceeds of sale of any 
state school loan bonds authorized to be issued under section 
124.46, and all income received from the investment of said net 
proceeds, after deducting from the aggregate proceeds of sale 
the amount which is required by section 124.46, subdivision 3 to 
be credited and is hereby appropriated to the school loan bond 
account in the state bond fund. 
    Sec. 4.  Minnesota Statutes 1990, section 124.46, 
subdivision 3, is amended to read: 
    Subd. 3.  The commissioner of finance shall maintain a 
separate school loan bond account in the state bond fund, 
showing all money transferred to that fund for the payment of 
school loan bonds and all income received from the investment of 
such money.  Upon the issuance of each series of school loan 
bonds the commissioner of finance shall deduct from the proceeds 
thereof and credit to said bond account a sum sufficient, with 
the balance then on hand in said account, to pay all interest to 
become due on such bonds on and before July 1 in the second 
ensuing year.  On the first day of November December in each 
year there shall be transferred to the bond account all or so 
much of the money then on hand in the loan repayment account in 
the maximum effort school loan fund as will be sufficient, with 
the balance then on hand in said bond account, to pay all 
principal and interest then and theretofore due and to become 
due within the next ensuing year and to and including July 1 in 
the second ensuing year on school loan bonds issued and sold 
pursuant to this section.  In the event that moneys are not 
available for such transfer in the full amount required, the 
state auditor shall levy on all taxable property within the 
state a tax sufficient to meet the deficiency.  Such tax shall 
be and remain subject to no limitation of rate or amount until 
all school loan bonds and all interest thereon are fully paid.  
The proceeds of this tax are hereby irrevocably appropriated and 
shall be credited to the state bond fund, but the school loan 
bond account is appropriated as the primary source of payment of 
such bonds and interest, and only so much of said tax as may be 
necessary is appropriated for this purpose.  If any principal or 
interest on school loan bonds should become due at any time when 
there is not on hand a sufficient amount from any of the sources 
herein appropriated for the payment thereof, it shall 
nevertheless be paid out of the general fund in the state 
treasury, and the amount necessary therefor is hereby 
appropriated; but any such payments shall be reimbursed from the 
proceeds of taxes levied as required herein, and any such 
payments made from taxes shall be reimbursed from the loan 
repayment account in the maximum effort school loan fund, when 
the balance therein is sufficient. 
     Sec. 5.  Minnesota Statutes 1990, section 124.477, is 
amended to read: 
    124.477 [BOND ISSUE; MAXIMUM EFFORT SCHOOL LOANS; 1988.] 
    To provide money to be loaned to school districts as 
agencies and political subdivisions of the state to acquire and 
to better public land and buildings and other public 
improvements of a capital nature, in the manner provided by the 
maximum effort school aid law, the commissioner of finance shall 
issue and sell school loan bonds of the state of Minnesota in 
the maximum amount of $22,000,000, in addition to the bonds 
already authorized for this purpose.  The same amount is 
appropriated to the maximum effort school loan fund and must be 
spent under the direction of the commissioner of education to 
make debt service loans and capital loans to school districts as 
provided in sections 124.36 to 124.47.  The bonds must be issued 
and sold and provision for their payment must be made according 
to section 124.46.  Enough money to pay interest on the bonds to 
and including July 1 in the second year after the date of issue 
must be credited from the bond proceeds to the school loan bond 
account in the state bond fund.  Expenses incidental to the 
sale, printing, execution, and delivery of the bonds, including, 
but without limitation, actual and necessary travel and 
subsistence expenses of state officers and employees for those 
purposes, must be paid from the maximum effort school loan fund, 
and the money necessary for the expenses is appropriated from 
that fund. 
     Sec. 6.  [TRANSFER TO CAPITAL LOAN ACCOUNT.] 
    During the fiscal year ending June 30, 1992, the 
commissioner of education may transfer within the maximum effort 
school loan fund from the loan repayment account to the capital 
loan account up to $185,000, to be used to make new capital 
loans. 
    Sec. 7.  [PIERZ CONSTRUCTION CONTRACT DEADLINES.] 
    Construction contracts entered into by independent school 
district No. 484, Pierz, to carry out the project for which a 
capital loan is made under Minnesota Statutes, section 124.431, 
are valid even though they were entered into before the loan was 
granted, notwithstanding the requirements of the capital loan 
contract and Minnesota Statutes, section 124.431, subdivision 1, 
that they be entered into within 18 months after the loan was 
granted. 
     Sec. 8.  [EFFECTIVE DATE.] 
    This act is effective the day following final enactment. 
    Presented to the governor April 29, 1991 
    Signed by the governor May 2, 1991, 4:31 p.m.