SF1676

SF1676 (Legislative Session 94 (2025-2026))

Minnesota Higher Education Facilities Authority restructuring and renaming to Minnesota Health and Education Facilities Authority provision, Authority construction and financing of health care facilities authorization provision, and increasing bonding capacity

Related bill: HF1165

AI Generated Summary

This bill renames the Minnesota Higher Education Facilities Authority as the Minnesota Health and Education Facilities Authority and expands its authority to finance and construct health care facilities in addition to education-related infrastructure. Key provisions include:

Expansion of Authority: The Authority is now empowered to assist health care organizations alongside institutions of higher education in financing, constructing, and refinancing projects.
Increased Bonding Capacity: The Authority's bonding limit is raised from $2 billion to $5 billion, with a maximum of $2.25 billion allocated for education projects and $2.75 billion for health care projects.
Composition of the Authority: The number of members increases from eight to nine, with new representation for a trustee, director, officer, or employee of a health care organization.
Definition of Facilities: Expands the definition of "projects" to include various health care facilities such as hospitals, clinics, nursing homes, assisted living facilities, outpatient centers, and diagnostic imaging facilities.
Regulatory Compliance for Facilities: Health care projects must comply with Minnesota’s health care facility regulations, including those related to licensure and expansion approvals.
Municipal Consent Requirement: For financing health care projects, the Authority must obtain consent from any city or town where the project is located (except for cities/towns with populations under 100,000).
Restriction on Private Equity Use: Health care organizations receiving financing must certify that no bond proceeds will be used to benefit private equity-funded entities.
Repeals and Statutory Adjustments: Various conforming changes to Minnesota statutes, a reorganization of relevant statutory provisions, and a repeal of certain outdated statutes.

The bill represents a major shift in the Authority’s mission, broadening its impact to encompass financing pathways for both higher education institutions and nonprofit health care organizations in Minnesota.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 19, 2025	Senate	Floor	Action	Introduction and first reading
February 19, 2025	Senate	Floor	Action	Referred to	Higher Education
February 26, 2025	Senate	Floor	Action	Withdrawn and re-referred to	Health and Human Services
March 02, 2025	Senate	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [
        "Added 'Minnesota Health and Education Facilities Authority' to the definition of state entities."
      ],
      "removed": [],
      "summary": "This section of the bill is involved in the expansion of definitions for state-related entities in relation to the Minnesota Health and Education Facilities Authority.",
      "modified": [
        "Expanded definition of 'State' to include the Minnesota Health and Education Facilities Authority."
      ]
    },
    "citation": "3.732, subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Included 'member or executive director of the Higher Health and Education Facilities Authority' in the definition of 'Public official'."
      ],
      "removed": [],
      "summary": "This section of the bill addresses the definition of 'Public official' within the Minnesota Statutes, involving the Minnesota Health and Education Facilities Authority.",
      "modified": [
        "The definition of 'Public official' is expanded to clarify new entities."
      ]
    },
    "citation": "10A.01, subdivision 35"
  },
  {
    "analysis": {
      "added": [
        "Projected new roles and responsibilities in managing health care facility projects."
      ],
      "removed": [
        "Removed 'Higher Education' specific references to generalize the authority's scope."
      ],
      "summary": "The bill proposes amendments to various sections within the range 136A.25 to 136A.42 regarding the restructuring and renaming of the Minnesota Higher Education Facilities Authority.",
      "modified": [
        "Renamed 'Minnesota Higher Education Facilities Authority' to 'Minnesota Health and Education Facilities Authority'."
      ]
    },
    "citation": "136A.25 to 136A.42"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section of the bill involves technical and community colleges and their financing through the Minnesota Health and Education Facilities Authority.",
      "modified": [
        "Prohibits technical and community colleges from seeking certain finance options without explicit board authorization."
      ]
    },
    "citation": "136F.67, subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section of the bill modifies the definition of 'Employing unit' concerning retirement plans for employees of the Minnesota Higher Education Facilities Authority.",
      "modified": [
        "Updates 'Higher Education Facilities Authority' to 'Higher Health and Education Facilities Authority' as part of the employing entity."
      ]
    },
    "citation": "354B.20, subdivision 7"
  }
]