1.1                          A bill for an act 
  1.2             relating to higher education; bonding; exempting 
  1.3             appropriations for Minnesota state college and 
  1.4             university libraries from the one-third debt service 
  1.5             requirement; amending Laws 1994, chapter 643, section 
  1.6             35, subdivisions 1 and 3. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Laws 1994, chapter 643, section 35, subdivision 
  1.9   1, is amended to read: 
  1.10     Subdivision 1.  [HIGHER EDUCATION BOARDS MINNESOTA STATE 
  1.11  COLLEGES AND UNIVERSITIES.] The state board of technical 
  1.12  colleges, the state board for community colleges, the state 
  1.13  university board, or their successors trustees of the Minnesota 
  1.14  state colleges and universities shall pay one-third of the debt 
  1.15  service on state bonds sold to finance projects authorized by 
  1.16  this act.  Appropriations for higher education asset 
  1.17  preservation and renewal and for libraries are not subject to 
  1.18  the one-third debt service requirement.  After each sale of 
  1.19  general obligation bonds, the commissioner of finance shall 
  1.20  notify the state board of technical colleges, the state board 
  1.21  for community colleges, the state university board, and the 
  1.22  higher education board of trustees of the amounts for which each 
  1.23  system is assessed of for each year for the life of the bonds. 
  1.24     Sec. 2.  Laws 1994, chapter 643, section 35, subdivision 3, 
  1.25  is amended to read: 
  1.26     Subd. 3.  [METHOD OF PAYMENT.] The commissioner shall 
  2.1   reduce each system's assessment each year under subdivisions 1 
  2.2   and 2 by one-third of the net income from investment of general 
  2.3   obligation bond proceeds that must be allocated among between 
  2.4   the systems in proportion to the amount of principal and 
  2.5   interest otherwise required to be paid by each.  Each higher 
  2.6   education system shall pay its resulting net assessment to the 
  2.7   commissioner of finance by December 1 each year.  If a higher 
  2.8   education system fails to make a payment when due, the 
  2.9   commissioner of finance shall reduce allotments for 
  2.10  appropriations from the general fund otherwise available to the 
  2.11  system and apply the amount of the reduction to cover the missed 
  2.12  debt service payment.  The commissioner of finance shall credit 
  2.13  the payments received from the higher education systems to the 
  2.14  bond debt service account in the state bond fund each December 1 
  2.15  before money is transferred from the general fund under 
  2.16  Minnesota Statutes, section 16A.641, subdivision 10.