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Minnesota Legislature

Office of the Revisor of Statutes

174.51 MINNESOTA STATE TRANSPORTATION BONDS.
    Subdivision 1. Purposes. For the purpose of providing money appropriated to agencies or
subdivisions of the state from the Minnesota state transportation fund for the acquisition and
betterment of public land, buildings, and capital improvements needed for the development
of the state transportation system, when such appropriations or loans are authorized by Laws
1976, chapter 339, section 3 or another law and funds therefor are requested by the governor, the
commissioner of finance shall sell and issue bonds of the state of Minnesota for the prompt and
full payment of which, with interest thereon, the full faith and credit and taxing powers of the
state are irrevocably pledged. Bonds shall be issued pursuant to this section only as authorized
by a law specifying the purpose thereof and the maximum amount of the proceeds authorized
to be expended for that purpose. Any such law, together with this section, constitutes complete
authority for the issue, and such bonds shall not be subject to restrictions or limitations contained
in any other law.
    Subd. 2. Sale; general obligations. The bonds shall be sold upon sealed bids and upon
notice, at a price, in form and denominations, bearing interest at a rate or rates, maturing in
amounts and on dates, without option of prior redemption or subject to prepayment upon notice
and at times and prices, payable at a bank or banks within or outside the state, with or without
provisions for registration, conversion, exchange, and issuance of temporary bonds or notes in
anticipation of the sale or delivery of definitive bonds, and in accordance with further provisions,
as the commissioner of finance shall determine subject to the approval of the attorney general,
but not subject to the provisions of chapter 14, including section 14.386. Each bond shall mature
within 20 years from its date of issue and shall be executed by the commissioner of finance under
official seal. The signature on the bonds and on any interest coupons and the seal may be printed
or otherwise reproduced, except that each bond shall be authenticated by the manual signature
on its face of the commissioner of finance or of a person authorized to sign on behalf of a bank
designated by the commissioner as registrar or other authenticating agent. The commissioner of
finance shall ascertain and certify to the purchasers of the bonds the performance and existence of
all acts, conditions, and things necessary to make them valid and binding general obligations of
the state of Minnesota, subject to the approval of the attorney general.
    Subd. 3. Expenses. All expenses incidental to the sale, printing, execution, and delivery
of bonds pursuant to this section, including but not limited to actual and necessary travel and
subsistence expenses of state officers and employees for such purposes, shall be paid from the
Minnesota state transportation fund and the amounts necessary therefor are appropriated from
that fund.
    Subd. 4. Account; appropriation. The commissioner of finance shall maintain in the state
bond fund a separate bookkeeping account designated as the Minnesota state transportation bond
account, to record receipts and disbursements of money transferred to the fund to pay Minnesota
state transportation bonds and interest thereon, and of income from the investment of such money,
which income shall be credited to the account in each fiscal year in an amount equal to the
approximate average rate of return that year on all funds invested by the commissioner of finance,
as determined by the commissioner of finance, times the average balance in the account that year.
    Subd. 5. Money credited; appropriated. The premium and accrued interest received on
each issue of Minnesota state transportation bonds shall be credited to the bond account. There
shall also be credited to the bond account from the general fund in the state treasury, on November
1 in each year, a sum of money equal to the amount of the tax which article XI of the Constitution
would otherwise require to be levied for collection in the following year, to increase the balance
in the account to an amount sufficient to pay principal and interest due and to become due with
respect to Minnesota state transportation bonds. All money so credited and all income from the
investment thereof is annually appropriated to the bond account for the payment of such bonds
and interest thereon, and shall be available in the bond account prior to the levy of a tax for
the state bond fund in any year as required by article XI of the Constitution. No money shall
be transferred to the Minnesota state transportation bond account from the highway user tax
distribution fund or any other fund created by article XIV of the Constitution. The commissioner
of finance is directed to make the appropriate entries in the accounts of the respective funds.
    Subd. 6. Levy; transfer of funds; appropriations. On or before December 1 in each year, if
the full amount appropriated to the bond account in subdivision 5 has not been credited thereto,
the tax required by article XI of the Constitution shall be levied upon all taxable property within
the state. This tax shall be subject to no limitation of rate or amount until all Minnesota state
transportation bonds and interest thereon are fully paid. The proceeds of this tax are appropriated
and shall be credited to the state bond fund, and the principal of and interest on the bonds
are payable from such proceeds, and the whole thereof, or so much as may be necessary, is
appropriated for such payments. If at any time there is not sufficient money from the proceeds of
such taxes to pay the principal and interest when due on Minnesota state transportation bonds,
such principal and interest shall be paid out of the general fund in the state treasury, and the
amount necessary therefor is hereby appropriated.
History: 1976 c 339 s 2; 1982 c 424 s 130; 1983 c 301 s 143,144; 1Sp1985 c 14 art 4 s 29;
1995 c 233 art 2 s 56; 1997 c 187 art 5 s 25; 2003 c 112 art 2 s 24,50