1.1                          A bill for an act 
  1.2             relating to capital improvements; exempting the public 
  1.3             higher education system from debt service costs; 
  1.4             amending Minnesota Statutes 1998, section 16A.643, 
  1.5             subdivision 1, and by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 16A.643, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [WHEN PAYMENT REQUIRED.] The commissioner 
  1.10  of finance shall assess each board, agency, or other public 
  1.11  entity, other than the higher education systems described in 
  1.12  Laws 1992, chapter 558, section 31, for the amount that would 
  1.13  otherwise need to be paid for debt service with respect to 
  1.14  general obligation bonds sold to finance capital improvement 
  1.15  projects for the entity if the law authorizing the project 
  1.16  requires debt service for the project to be paid by the agency. 
  1.17     Sec. 2.  Minnesota Statutes 1998, section 16A.643, is 
  1.18  amended by adding a subdivision to read: 
  1.19     Subd. 3.  [HIGHER EDUCATION EXEMPTION.] The board of 
  1.20  regents of the University of Minnesota and the board of trustees 
  1.21  of the Minnesota state colleges and universities shall not be 
  1.22  assessed or otherwise required to pay any portion of the amount 
  1.23  of the debt service on general obligation bonds sold to finance 
  1.24  capital improvement projects for public higher education 
  1.25  facilities in Minnesota. 
  2.1      Sec. 3.  [EFFECTIVE DATE.] 
  2.2      Sections 1 and 2 are effective for bonds authorized after 
  2.3   the effective date of this act.