SF1104

Purpose

• The bill aims to fund transportation projects through the Corridors of Commerce program by appropriating a large sum from state bonds. It authorizes selling up to $300,000,000 in state bonds to finance the program.

Main Provisions

• Appropriation of funds:
  • An amount of 300,000,000 is appropriated from the bond proceeds account in the trunk highway fund to the commissioner of transportation for the Corridors of Commerce program (under Minnesota Statutes section 161.088).
  • The commissioner may use up to 17 percent of this appropriation for program delivery.
• Bond issuance:
  • The commissioner of management and budget must sell and issue up to 300,000,000 in state bonds to provide the money appropriated.
  • Bond issuance must follow Minnesota Statutes sections 167.50 to 167.52 and the Minnesota Constitution, Article XIV, Section 11, at times and in amounts requested by the commissioner of transportation.
• Use of bond proceeds:
  • The proceeds from the bond sale, excluding accrued interest and any premium, must be deposited into the bond proceeds account in the trunk highway fund.

Funding and Administration

• Administering agencies:
  • Transportation: Oversees the Corridors of Commerce program and the use of the funds.
  • Management and Budget: Responsible for issuing and selling the state bonds to raise the funds.
• Legal and financial framework:
  • Bond issuance must adhere to specified state statutes and constitutional provisions.
  • Government accounting: Only the bond proceeds (minus interest and premiums) go into the bond proceeds account; interest and premiums are treated separately.

Significant Changes to Law

• Establishes a new, specific appropriation of 300,000,000 from the bond proceeds account for the Corridors of Commerce program.
• Creates a formal requirement to issue up to 300,000,000 in state bonds to fund this appropriation.
• Sets aside up to 17 percent of the appropriation for program delivery costs.

Practical Impact

• Provides a defined funding mechanism and debt authorization to advance transportation projects under the Corridors of Commerce program.
• Ties funding to specific statutory and constitutional processes for bond issuance and fund management.

Potential Considerations

• Long-term debt implications for the state due to bond issuance.
• Future annual or project-level planning required to deploy the funds in accordance with the Corridors of Commerce program goals.

Relevant Terms

corridors of commerce program bond proceeds account trunk highway fund appropriation commissioner of transportation Minnesota Statutes section 161.088 program delivery bond sale commissioner of management and budget Minnesota Statutes sections 167.50 to 167.52 Minnesota Constitution article XIV section 11 accrued interest premium bond proceeds account in the trunk highway fund