HF572

Purpose

• Provide state funding for a new public works maintenance facility in the city of Chisholm through a grant and by issuing state bonds. The goal is to support the design, construction, furnishing, and equipping of the facility. The bill specifies that this appropriation comes from the bond proceeds fund and does not require a nonstate match.

Main Provisions

• Subdivision 1 – Appropriation: $3,000,000 is appropriated from the bond proceeds fund to the commissioner of employment and economic development to grant to the city of Chisholm for designing, constructing, furnishing, and equipping a new public works maintenance facility. No nonstate match is required.
• Subdivision 2 – Bond Sale: To fund the appropriation, the commissioner of management and budget shall sell and issue state bonds up to $3,000,000, following Minnesota law (statutes 16A.631 to 16A.675) and the Minnesota Constitution (Article XI, sections 4–7).

What this means and how it works

• The state will use debt financing (bonding) to pay for the project, with a grant to the city of Chisholm to carry out the project components (design, construction, furnishing, and equipping).
• The funding comes from the bond proceeds fund, and the city does not need to provide a nonstate match.
• Administration of the grant and bond process will follow relevant state statutes and constitutional provisions.

Significant Changes to Existing Law

• Authorizes new capital investment funding specifically for Chisholm’s public works maintenance facility and creates an official mechanism to issue up to $3,000,000 in state bonds to fund this grant.
• Establishes or reinforces procedures for bond sale and spending under existing statutes and constitutional requirements.

Financial and Administrative Details

• Funding source: bond proceeds fund.
• Recipient: city of Chisholm (via a grant administered by the commissioner of employment and economic development).
• Use of funds: design, construction, furnishing, and equipping of a new public works maintenance facility.
• Match requirement: none (no nonstate match required).
• Bonding process: managed by the commissioner of management and budget, up to $3,000,000, per relevant statutes and constitutional provisions.

Key Terms from the Bill

• public works maintenance facility
• grant
• city of Chisholm
• design, construct, furnish, and equip
• appropriation
• bond proceeds fund
• nonstate match
• bond sale / sale and issue bonds
• commissioner of employment and economic development
• commissioner of management and budget
• Minnesota Statutes sections 16A.631 to 16A.675
• Minnesota Constitution Article XI sections 4 to 7

Relevant Terms

• public works maintenance facility
• grant
• Chisholm
• design
• construct
• furnish
• equip
• appropriation
• bond proceeds fund
• nonstate match
• bond sale
• state bonds
• commissioner of management and budget
• commissioner of employment and economic development
• Minnesota Statutes 16A.631 to 16A.675
• Minnesota Constitution Article XI, sections 4–7