1.1                          A bill for an act 
  1.2             relating to education; removing the bond sale 
  1.3             limitation on capital loans that have been outstanding 
  1.4             for 20 years; amending Minnesota Statutes 1998, 
  1.5             section 126C.69, subdivision 15. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 126C.69, 
  1.8   subdivision 15, is amended to read: 
  1.9      Subd. 15.  [BOND SALE LIMITATIONS.] A district having an 
  1.10  outstanding state loan must not issue and sell any bonds on the 
  1.11  public market, except to refund state loans, unless it agrees to 
  1.12  make the maximum effort debt service levy in each later year at 
  1.13  the higher rate provided in section 126C.63, subdivision 8, and 
  1.14  unless it schedules the maturities of the bonds according to 
  1.15  section 475.54, subdivision 2.  A district that refunds bonds at 
  1.16  a lower interest rate may continue to make the maximum effort 
  1.17  debt service levy in each later year at the current rate 
  1.18  provided in section 126C.63, subdivision 8, if the district can 
  1.19  demonstrate to the commissioner's satisfaction that the 
  1.20  district's repayments of the state loan will not be reduced 
  1.21  below the previous year's level.  The district must report each 
  1.22  sale to the commissioner. 
  1.23     After a district's capital loan has been outstanding for 20 
  1.24  years, the district must not issue bonds on the public market 
  1.25  except to refund the loan.