Bill Text: MN SF1057 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Bond sale premiums use modifications
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-05-10 - Withdrawn and re-referred to Capital Investment [SF1057 Detail]
Download: Minnesota-2011-SF1057-Introduced.html
1.2relating to debt service; amending the use of bond sale premiums; amending
1.3Minnesota Statutes 2010, sections 16A.641, subdivision 7; 16A.642, subdivision
1.42.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 16A.641, subdivision 7, is amended to
1.7read:
1.8 Subd. 7. Credit of proceeds. (a) Proceeds of bonds issued under each law must be
1.9credited by the commissioner to a special fund, as provided in this subdivision.
1.10(b) Accrued interestand any premium received on sale of the bonds must be credited
1.11to the state bond fund created by the Constitution, article XI, section 7. Any premium
1.12received on the sale of the bonds on or prior to December 1, 2012, must be credited to
1.13the state bond fund. Any premium received on the sale of the bonds after December 1,
1.142012, must be credited to either the bond proceeds fund where it is used to reduce the par
1.15amount of the bonds issued or the state bond fund.
1.16(c) Except as otherwise provided by law, proceeds of state bonds issued under the
1.17Constitution, article XI, section 5, clause (a), must be credited to the bond proceeds fund
1.18established by section16A.631 .
1.19(d) Proceeds of state highway bonds must be credited to the trunk highway fund
1.20under the Constitution, article XIV, section 6.
1.21(e) Proceeds of bonds issued for programs of grants or loans to political subdivisions
1.22must be credited to special accounts in the bond proceeds fund or to special funds
1.23established by laws stating the purposes of the grants or loans, and the standards and
1.24criteria under which an executive agency is authorized to make them.
2.1(f) Proceeds of refunding bonds must be credited to the state bond fund as provided
2.2in section16A.66, subdivision 1 .
2.3(g) Proceeds of other bonds must be credited as provided in the law authorizing
2.4their issuance.
2.5 Sec. 2. Minnesota Statutes 2010, section 16A.642, subdivision 2, is amended to read:
2.6 Subd. 2. Cancellation. (a) If the commissioner determines that the purposes for
2.7which general obligation bonds of the state have been issued or for which general fund
2.8monies were appropriated are accomplished or abandoned, after consultation with the
2.9affected agencies, and there is a remaining authorization or appropriation for a specific
2.10project of $500 or less, the commissioner may cancel the remaining authorization or
2.11appropriation for that project.
2.12(b) If a premium received on the sale of bonds is credited to the bond proceeds
2.13fund, pursuant to section 16A.641, subdivision 7, paragraph (b), the corresponding bond
2.14authorization to which the premium is attributable must be reduced accordingly by the
2.15commissioner.
2.16(c) The commissioner must notify the chairs of the senate Finance Committee and
2.17the house of representatives Capital Investment Committee of any bond authorizations or
2.18general fund appropriations canceled under this subdivision.
1.3Minnesota Statutes 2010, sections 16A.641, subdivision 7; 16A.642, subdivision
1.42.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 16A.641, subdivision 7, is amended to
1.7read:
1.8 Subd. 7. Credit of proceeds. (a) Proceeds of bonds issued under each law must be
1.9credited by the commissioner to a special fund, as provided in this subdivision.
1.10(b) Accrued interest
1.11to the state bond fund created by the Constitution, article XI, section 7. Any premium
1.12received on the sale of the bonds on or prior to December 1, 2012, must be credited to
1.13the state bond fund. Any premium received on the sale of the bonds after December 1,
1.142012, must be credited to either the bond proceeds fund where it is used to reduce the par
1.15amount of the bonds issued or the state bond fund.
1.16(c) Except as otherwise provided by law, proceeds of state bonds issued under the
1.17Constitution, article XI, section 5, clause (a), must be credited to the bond proceeds fund
1.18established by section
1.19(d) Proceeds of state highway bonds must be credited to the trunk highway fund
1.20under the Constitution, article XIV, section 6.
1.21(e) Proceeds of bonds issued for programs of grants or loans to political subdivisions
1.22must be credited to special accounts in the bond proceeds fund or to special funds
1.23established by laws stating the purposes of the grants or loans, and the standards and
1.24criteria under which an executive agency is authorized to make them.
2.1(f) Proceeds of refunding bonds must be credited to the state bond fund as provided
2.2in section
2.3(g) Proceeds of other bonds must be credited as provided in the law authorizing
2.4their issuance.
2.5 Sec. 2. Minnesota Statutes 2010, section 16A.642, subdivision 2, is amended to read:
2.6 Subd. 2. Cancellation. (a) If the commissioner determines that the purposes for
2.7which general obligation bonds of the state have been issued or for which general fund
2.8monies were appropriated are accomplished or abandoned, after consultation with the
2.9affected agencies, and there is a remaining authorization or appropriation for a specific
2.10project of $500 or less, the commissioner may cancel the remaining authorization or
2.11appropriation for that project.
2.12(b) If a premium received on the sale of bonds is credited to the bond proceeds
2.13fund, pursuant to section 16A.641, subdivision 7, paragraph (b), the corresponding bond
2.14authorization to which the premium is attributable must be reduced accordingly by the
2.15commissioner.
2.16(c) The commissioner must notify the chairs of the senate Finance Committee and
2.17the house of representatives Capital Investment Committee of any bond authorizations or
2.18general fund appropriations canceled under this subdivision.
