Subdivision 1. Establishment of program. The commissioner of management and budget, in consultation with the University of Minnesota, the Minnesota State Colleges and Universities, and the Private College Council, shall establish a college savings bond program, to be known as "gopher state bonds" to encourage individuals to save for higher education costs by investing in state general obligation bonds. The program consists of: (1) issuing a portion of the state general obligation bonds in zero coupon form and in denominations and maturities that will be attractive to individuals saving to pay for higher education costs; and (2) developing a program for marketing the bonds to investors who are saving to pay for higher education costs. The commissioner of management and budget may designate all or a portion of each state general obligation bond sale as "gopher state bonds."
Subd. 2. Denominations; maturities. The commissioner shall determine the appropriate denominations and maturities for gopher state bonds. It is the intent of the legislature to make bonds available in as small denominations as is feasible given the costs of marketing and administering the bond issue. Minimum denominations of $500 must be made available. The minimum denomination bonds need not be made available for bonds of all maturities. For purposes of this section, "denomination" means the compounded maturity amount of the bond.
Subd. 3. Direct sale permitted. Notwithstanding the provisions of section 16A.646, subdivision 5, the commissioner may sell any series of gopher state bonds directly to the public or to financial institutions for prompt resale to the public upon the terms and conditions and the restrictions the commissioner prescribes. The commissioner may enter into all contracts deemed necessary or desirable to accomplish the sale in a cost-effective manner including a private or negotiated sale, but the commissioner may contract for investment banking and banking services only after receiving competitive proposals for the services.
Subd. 4. Marketing plan. The commissioner and the Higher Education Advisory Council shall develop a plan for marketing gopher state bonds.
The plan must include strategies to:
(1) inform parents and relatives about the availability of the bonds;
(2) take orders for the bonds;
(3) target the sale of the bonds to Minnesota residents, especially parents and relatives of children who are likely to seek higher education;
(4) ensure that purchase of the bonds by corporations will not prevent individuals and relatives of future students from buying them; and
(5) market the bonds at the lowest cost to the state.
Subd. 5. Effect on student grants. The first $25,000 of gopher state bonds purchased for the benefit of a student must not be considered in determining the financial need of an applicant for the state grant program under section 136A.121. This $25,000 is in addition to any other asset exclusion authorized under chapter 136A.
1997 c 183 art 2 s 1; 2009 c 101 art 2 s 109
Structure Minnesota Statutes
Chapters 16A - 16E — Administration And Finance
Chapter 16A — Department Of Management And Budget
Section 16A.01 — Department Of Management And Budget; Commissioner; Employees.
Section 16A.011 — Definitions.
Section 16A.012 — Warrants; Discounts.
Section 16A.013 — Gifts; Acceptance.
Section 16A.014 — Administration Of Gifts.
Section 16A.015 — Investment Of Gifts.
Section 16A.016 — Payment; Appropriation.
Section 16A.04 — Budget And Cash Projection.
Section 16A.055 — Commissioner's Duties.
Section 16A.056 — Website With Searchable Database On State Expenditures.
Section 16A.0561 — Mapped Data On Expenditures.
Section 16A.057 — Internal Controls And Internal Auditing.
Section 16A.06 — Additional Commissioner Duties And Powers.
Section 16A.061 — May Issue Commemorative Medallions.
Section 16A.065 — Prepay Software, Subscriptions, United States Documents.
Section 16A.095 — State Budget System.
Section 16A.10 — Budget Preparation.
Section 16A.101 — Service Contracts; Expenditures.
Section 16A.102 — Budgeting Revenues Relative To Personal Income.
Section 16A.103 — Forecasts Of Revenue And Expenditures.
Section 16A.105 — Debt Capacity Forecast.
Section 16A.11 — Budget To Legislature.
Section 16A.115 — Relocation Requests.
Section 16A.122 — Work Force Planning And Reporting.
Section 16A.124 — Prompt Payment Of State Agency Bills Required.
Section 16A.1245 — Prompt Payment To Subcontractors.
Section 16A.126 — Revolving Fund Billing.
Section 16A.127 — Indirect Costs.
Section 16A.1283 — Legislative Approval Required For Fees.
Section 16A.1285 — Departmental Earnings; Charges Levied By Agency.
Section 16A.125 — State Trust Lands.
Section 16A.1286 — Statewide Systems Account.
Section 16A.129 — Other Commissioner Powers.
Section 16A.13 — Federal Tax Withholding.
Section 16A.131 — Deductions For United States Securities, Transit Cards.
Section 16A.133 — Credit Union, Parking, Other Deductions.
Section 16A.134 — Charitable Organizations Payroll Deductions.
Section 16A.138 — Officials Not To Exceed Appropriation.
Section 16A.139 — Misappropriation Of Money.
Section 16A.14 — Allotment And Encumbrance System.
Section 16A.15 — Accounting System; Allotment And Encumbrance.
Section 16A.151 — Proceeds Of Litigation Or Settlement.
Section 16A.152 — Budget Reserve And Cash Flow Accounts.
Section 16A.155 — Refunds; Charged When Paid.
Section 16A.17 — Preparation Of State Payroll.
Section 16A.18 — Accounting, Payroll For Courts, Legislature.
Section 16A.19 — Retirement, Social Security Deficiencies.
Section 16A.25 — Sale Of Securities Before Maturity.
Section 16A.26 — One Depository Account For Each Tax.
Section 16A.27 — State Funds; Deposit; Control By Commissioner.
Section 16A.271 — Depositories, Designation.
Section 16A.272 — Deposits Of Certain Funds Of Public Corporations, Security.
Section 16A.273 — Inducements To Make Deposits.
Section 16A.275 — Agency Receipts; Deposit, Report, Credit.
Section 16A.276 — Cash Overage And Shortage Account.
Section 16A.28 — Treatment Of Unused Appropriations.
Section 16A.281 — Appropriations To Legislature.
Section 16A.283 — Appropriations To Courts.
Section 16A.284 — Appropriations To Constitutional Officers.
Section 16A.285 — Allowed Appropriation Transfers.
Section 16A.36 — Grants From And Advances To United States.
Section 16A.40 — Warrants And Electronic Fund Transfers.
Section 16A.401 — Virtual Payments Authorized.
Section 16A.41 — Claims Against State.
Section 16A.42 — Claims: Form, Approval, Register.
Section 16A.43 — Warrant A Receipt.
Section 16A.44 — Commissioner May Compel Testimony.
Section 16A.45 — Outstanding Unpaid Warrants, Cancellation.
Section 16A.46 — Lost Or Destroyed Warrant Duplicate; Indemnity.
Section 16A.461 — Duplicate Bonds Issued.
Section 16A.462 — Execution Of Duplicates.
Section 16A.463 — Delivery Of Duplicates; Bond.
Section 16A.464 — Bond, When Canceled.
Section 16A.47 — Commissioner's Account, Document Duties.
Section 16A.48 — Refund Of Erroneous Deposits.
Section 16A.49 — Refunds Of $1 Or Less.
Section 16A.50 — Financial Report To Legislature.
Section 16A.501 — Report On Expenditure Of Bond Proceeds.
Section 16A.502 — Nonstate Commitments To Capital Projects.
Section 16A.53 — Bookkeeping Accounts.
Section 16A.531 — Funds Created.
Section 16A.532 — Minnesota State Colleges And Universities Enterprise Account.
Section 16A.54 — General Fund Defined.
Section 16A.56 — Commissioner's Receipt And Claim Duties.
Section 16A.57 — Appropriation, Allotment, And Warrant Needed.
Section 16A.575 — Appropriations; Not Disclosing Source.
Section 16A.58 — Commissioner Custodian Of Payment Documents.
Section 16A.61 — Certificate Money To General Fund.
Section 16A.62 — Money In Abolished Fund To General Fund.
Section 16A.626 — Electronic Payments.
Section 16A.631 — Bond Proceeds Fund.
Section 16A.632 — Capital Asset Preservation And Replacement Account.
Section 16A.633 — Capital Funding; Maintaining Data And Reporting.
Section 16A.641 — State Bonds; Appropriations.
Section 16A.642 — State Bonds: Reports; Cancellations.
Section 16A.643 — Assessments If Agency Must Pay Debt Service.
Section 16A.645 — Gopher State Bonds.
Section 16A.646 — Zero Coupon Bonds.
Section 16A.647 — Tax Credit And Interest Subsidy Bonds.
Section 16A.66 — Refunding Bonds.
Section 16A.661 — General Obligation Special Tax Bonds.
Section 16A.662 — Infrastructure Development Bonds.
Section 16A.671 — Certificates Of Indebtedness.
Section 16A.672 — Bonds And Certificates Of Indebtedness.
Section 16A.673 — Certificates Of Indebtedness Issued By State, Negotiability.
Section 16A.675 — Persons Executing Obligations Not Liable.
Section 16A.68 — Federal Funds To The Game And Fish Account.
Section 16A.69 — Appropriations Into Single Project Account.
Section 16A.695 — State Bond Financed Property.
Section 16A.72 — Income Credited To General Fund; Exceptions.
Section 16A.721 — State Seminar Fees, Appropriation.
Section 16A.722 — Loss Or Damage To State Property.
Section 16A.723 — Governor's Residence; Reimbursement Of Expenses.
Section 16A.724 — Health Care Access Fund.
Section 16A.726 — Sports Facilities Transfers; Appropriations.
Section 16A.727 — Backup Revenues; Football Stadium Funding.
Section 16A.79 — Matching Federal Appropriations.
Section 16A.81 — Technology Development Lease-purchase Financing.
Section 16A.85 — Master Lease.
Section 16A.86 — Capital Project Grants To Political Subdivisions.
Section 16A.88 — Transit Assistance Fund.
Section 16A.90 — Employee Gainsharing System.
Section 16A.93 — Minnesota Pay-for-performance Act.
Section 16A.94 — Pay-for-performance Program.
Section 16A.96 — Minnesota Pay-for-performance Program; Appropriation Bonds.
Section 16A.963 — Electric Vehicle Infrastructure Appropriation Bonds.
Section 16A.964 — Public Television Equipment Appropriation Bonds.
Section 16A.965 — Stadium Appropriation Bonds.
Section 16A.966 — Response To Releases Appropriation Bonds.
Section 16A.967 — Lewis And Clark Appropriation Bonds.
Section 16A.968 — Duluth Regional Exchange District Appropriation Bonds.
Section 16A.97 — Tobacco Bonds.