MN SF4266

Authorizes the commissioner to issue up to $8,300,000 in state appropriation bonds (net of issuance costs) for Phase 1 of the West Central Regional Water System project, including a trunk transmission pipeline to transport potable water from North Dakota to cities including Climax, Nielsville, Shelly, Halstad, Hendrum, Perley, Georgetown, Beltrami, Borup, and Felton.

Authorizes an additional up to $64,000,000 in state appropriation bonds (net of issuance costs) for Phase 2 to finance a rural pipeline distribution system connected to the trunk pipeline for potable water to rural communities in west central Minnesota for agricultural and domestic use.

Requires a nonstate match of at least $8,300,000 committed before Phase 1 bonds are sold, and requires the commissioner to determine a nonstate match amount for Phase 2 before those bonds are sold.

Bonds may have terms up to 25 years and can bear fixed or variable interest rates; bond proceeds are credited to a special West Central Regional Water System bond proceeds fund in the state treasury.

Appropriates general fund money for debt service payments on the bonds in fiscal years 2017-2038 for Phase 1 and 2018-2039 for Phase 2; bonds are not backed by the state's full faith and credit and can be canceled if the legislature fails to appropriate sufficient funds for debt service.