Subd. 1. Reports.

1. (a) The commissioner of finance shall report to the chairs of the senate committee on finance and the house of representatives committees on ways and means and on capital investment by February 1 of each odd-numbered year on the following:

   1. (1) all laws authorizing the issuance of state bonds for state or local government building projects enacted more than five years before February 1 of that odd-numbered year; the projects authorized to be acquired and constructed with the bond proceeds for which less than 100 percent of the authorized total cost has been expended, encumbered, or otherwise obligated; the cost of contracts to be let in accordance with existing plans and specifications shall be considered expended for this report; and the amount of bonds not issued and bond proceeds held but not previously expended, encumbered, or otherwise obligated for these projects; and
   2. (2) all laws authorizing the issuance of state bonds for state or local government programs or projects other than those described in clause (1), enacted more than five years before February 1 of that odd-numbered year; and the amount of bonds not issued and bond proceeds held but not previously expended, encumbered, or otherwise obligated for these programs and projects.
2. (b) The commissioner shall also report on bond authorizations or bond proceed balances that may be canceled because projects have been canceled, completed, or otherwise concluded, or because the purposes for which the bonds were authorized or issued have been canceled, completed, or otherwise concluded. The bond authorizations or bond proceed balances that are unencumbered or otherwise not obligated that are reported by the commissioner under this subdivision are canceled, effective July 1 of the year of the report, unless specifically reauthorized by act of the legislature.

Subd. 2. Cancellation.

If the commissioner determines that the purposes for which general obligation bonds of the state have been issued are accomplished or abandoned, after consultation with the affected agencies, and there is a remaining authorization for a specific project of $500 or less, the commissioner may cancel the remaining authorization for that project. The commissioner must notify the chairs of the senate finance committee and the house capital investment committee of any bond authorizations canceled under this subdivision.

Subd. 3. Application of unused bond proceeds.

All canceled bond proceeds shall be transferred to the state bond fund and used to pay or redeem bonds from which they were derived.

* NOTE: The amendment to subdivision 1 by Laws 1997, chapter *202, article 2, section 20, is effective March 1, 1998. Laws *1997, chapter 202, article 2, section 65.