2001 Minnesota Statutes

     16A.662 Infrastructure development bonds. 

    Subdivision 1.    Infrastructure development fund.  The 
 infrastructure development fund is created as an account in the 
 state treasury.  The commissioner of finance shall credit to the 
 fund income from the sources provided by law.  The commissioner 
 of finance shall from time to time certify to the state board of 
 investment the assets of the fund not currently needed.  The 
 amount certified must be invested by the state board of 
 investment subject to section 11A.24.  Investment income and 
 investment losses attributable to investment of fund assets must 
 be credited to or borne by the fund. 

    Subd. 2.    Bonds authorized.  When authorized by law 
 enacted in accordance with the constitution, article XI, 
 sections 5 and 7, the commissioner may by order sell and issue 
 bonds of the state evidencing public debt incurred for any 
 purpose stated in the law.  The bonds are general obligations of 
 the state, and the full faith and credit of the state are 
 pledged for their payment. 

    Subd. 3.    Manner of issuance; maturities.  The bonds 
 must be issued and sold in accordance with section 16A.641.  
 Sections 16A.672 and 16A.675 apply to the bonds. 

    Subd. 4.    Establishment of debt service account; 
 appropriation of debt service account money.  There is 
 established within the state bond fund a separate and special 
 account designated as the infrastructure development bond debt 
 service account.  The money on hand in the debt service account 
 must be used solely for the payment of the principal of and 
 interest on bonds issued under Laws 1990, chapter 610, article 
 1, section 30, subdivision 2, and is appropriated for this 
 purpose.  This appropriation does not cancel as long as any of 
 the bonds remain outstanding. 

    Subd. 5.    Assessment to higher education systems.  (a) 
 In order to reduce the amount otherwise required to be 
 transferred to the state bond fund with respect to bonds 
 heretofore or hereafter issued under Laws 1990, chapter 610, 
 article 1, section 30, subdivision 2, the commissioner of 
 finance shall assess each higher education system for one-third 
 the amount that would otherwise need to be transferred with 
 respect to those bonds sold to finance capital improvement 
 projects at institutions under the control of the system; 
 provided that, to the extent that the amount to be transferred 
 is for payment of principal and interest on bonds sold to 
 finance life safety improvements, the commissioner must not 
 assess the higher education systems for the transfer. 

    (b) After each sale of the bonds, the commissioner of 
 finance shall notify the board of trustees of the Minnesota 
 state colleges and universities and the regents of the 
 University of Minnesota of the amounts for which each system is 
 responsible for each year for the life of the bonds.  The 
 amounts payable each year are reduced by one-third of the net 
 income from investment of those bond proceeds that must be 
 allocated among the systems in proportion to the amount of 
 principal and interest otherwise required to be paid by each.  
 Each higher education system shall pay its annual share of debt 
 service payments to the commissioner of finance by December 1 
 each year.  If a higher education system fails to make a payment 
 when due, the commissioner of finance shall reduce allotments 
 for appropriations from the general fund otherwise payable to 
 the system to cover the amount of the missed debt service 
 payment.  The commissioner of finance shall credit the payments 
 received from the higher education systems to the infrastructure 
 development bond debt service account in the state bond fund 
 each December 1 before the transfer is made under subdivision 4. 

    Subd. 6.    Appropriation from general fund.  There is 
 annually appropriated from the general fund for transfer to the 
 infrastructure development bond debt service account the amount 
 that, added to the amount in the infrastructure development bond 
 debt service account on December 1 each year, after giving 
 effect to subdivisions 4 and 5, is equal to the full amount of 
 principal and interest to come due on all bonds to and including 
 July 1 in the second ensuing year. 

    Subd. 7.    Constitutional tax levy.  Under the 
 constitution, article XI, section 7, the state auditor must levy 
 each year on all taxable property within the state a tax 
 sufficient, with the amount then on hand in the infrastructure 
 development bond debt service account, to pay all principal and 
 interest on the bonds due and to become due to and including 
 July 1 in the second ensuing year.  The tax is not subject to 
 limit as to rate or amount.  However, the amount of money 
 appropriated from other sources as provided in subdivisions 4, 
 5, and 6, and actually received and on hand before the levy in 
 any year, reduces the amount of the tax otherwise required to be 
 levied.  The proceeds of the tax must be credited to the 
 infrastructure development bond debt service account. 

    Subd. 8.    Application and appropriation of proceeds.  
 The proceeds of the bonds must be deposited and spent as 
 provided in this subdivision and are appropriated for those 
 purposes.  Any accrued interest and any premium received on the 
 sale of the bonds must be credited to the infrastructure 
 development bond debt service account.  Except as otherwise 
 required by law, the balance of the bond proceeds shall be 
 credited to the infrastructure development fund and spent for 
 the purposes specified in the law authorizing the issuance of 
 the bonds.  So much of the proceeds as is necessary must be used 
 to pay costs incurred in issuing and selling the bonds. 

    HIST: 1990 c 610 art 1 s 37; 1991 c 233 s 39-41; 1991 c 345 
 art 1 s 55; 1997 c 183 art 3 s 38