1.1                          A bill for an act 
  1.2             relating to higher education; capital improvements; 
  1.3             Minnesota state colleges and universities; modifying 
  1.4             board of trustees debt service requirement on certain 
  1.5             projects; amending Laws 1998, chapter 404, section 3, 
  1.6             subdivision 29. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Laws 1998, chapter 404, section 3, subdivision 
  1.9   29, is amended to read: 
  1.10  Subd. 29.  Debt Service
  1.11  (a) The board shall pay one-third of 
  1.12  the debt service on state bonds sold to 
  1.13  finance projects authorized by this 
  1.14  section, except for subdivisions 8, 10, 
  1.15  and 22.  After each sale of general 
  1.16  obligation bonds, the commissioner of 
  1.17  finance shall notify the board of the 
  1.18  amounts assessed for each year for the 
  1.19  life of the bonds. 
  1.20  (b) The commissioner shall reduce the 
  1.21  board's assessment each year by 
  1.22  one-third of the net income from 
  1.23  investment of general obligation bond 
  1.24  proceeds in proportion to the amount of 
  1.25  principal and interest otherwise 
  1.26  required to be paid by the board.  The 
  1.27  board shall pay its resulting net 
  1.28  assessment to the commissioner of 
  1.29  finance by December 1 each year.  If 
  1.30  the board fails to make a payment when 
  1.31  due, the commissioner of finance shall 
  1.32  reduce allotments for appropriations 
  1.33  from the general fund otherwise 
  1.34  available to the board and apply the 
  1.35  amount of the reduction to cover the 
  1.36  missed debt service payment.  The 
  1.37  commissioner of finance shall credit 
  1.38  the payments received from the board to 
  1.39  the bond debt service account in the 
  1.40  state bond fund each December 1 before 
  2.1   money is transferred from the general 
  2.2   fund under Minnesota Statutes, section 
  2.3   16A.641, subdivision 10. 
  2.4      Sec. 2.  [EFFECTIVE DATE.] 
  2.5      Section 1 is effective the day following final enactment.