S.F. No. 1307, as introduced - 86th Legislative Session (2009-2010) Posted on Mar 06, 2009
1.1A bill for an act1.2relating to capital investment; amending certain general obligation bond sale
1.3provisions;amending Minnesota Statutes 2008, sections 16A.641, subdivisions
1.44, 7; 16A.66, subdivision 2.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2008, section 16A.641, subdivision 4, is amended to
1.8 Subd. 4. Sale and issuance. State bonds
1.10determined by the commissioner in accordance with the laws authorizing them and
1.11subject to the approval of the attorney general, but not subject to chapter 14, including
1.13commissioner may determine:
1.14(1) the time, place, and form of notice of sale
1.15for proposals for negotiated sales;
1.16(2) method of comparing bids;
1.21issue, subject to subdivision 5;
1.23maturity, including notice, times, and redemption prices; and
2.2registration, conversion, and exchange, in accordance with section
2.3 Sec. 2. Minnesota Statutes 2008, section 16A.641, subdivision 7, is amended to read:
2.4 Subd. 7. Credit of proceeds. (a) Proceeds of bonds issued under each law must be
2.5credited by the commissioner to a special fund, as provided in this subdivision.
2.6(b) Accrued interest
2.7to the state bond fund created by the Constitution, article XI, section 7. Premium received
2.8on the sale of the bonds must be credited either to the state bond fund or to the bond
2.9proceeds fund where it is used to reduce the par amount of the bonds issued. Premium
2.10may only be credited to the bond proceeds fund and used to reduce the par amount if it
2.11does not cause an increase in the general fund debt service transfer for the biennium
2.12during which the bonds are sold, as estimated by the commissioner.
2.13(c) Except as otherwise provided by law, proceeds of state bonds issued under the
2.14Constitution, article XI, section 5, clause (a), must be credited to the bond proceeds fund
2.15established by section
2.16(d) Proceeds of state highway bonds must be credited to the trunk highway fund
2.17under the Constitution, article XIV, section 6.
2.18(e) Proceeds of bonds issued for programs of grants or loans to political subdivisions
2.19must be credited to special accounts in the bond proceeds fund or to special funds
2.20established by laws stating the purposes of the grants or loans, and the standards and
2.21criteria under which an executive agency is authorized to make them.
2.22(f) Proceeds of refunding bonds must be credited to the state bond fund as provided
2.24(g) Proceeds of other bonds must be credited as provided in the law authorizing
2.26 Sec. 3. Minnesota Statutes 2008, section 16A.66, subdivision 2, is amended to read:
2.27 Subd. 2. Special provisions for sale and issuance. Refunding bonds may be sold
2.29bids, or may be exchanged for bonds refunded by agreement with their holders. The
2.30refunding bonds must be prepared, executed, delivered, and secured in the same way as
2.31the refunded bonds. The proceeds of refunding bonds may be deposited, invested, and
2.32applied to accomplish the refunding as provided in section
2.3310 and 13
3.1if the purpose of refunding is to extend the maturities and to reduce the amount needed
3.2annually to pay and to secure the debt.
3.3 Sec. 4. EFFECTIVE DATE.
3.4This act is effective the day following final enactment.