SF2198

This bill (S.F. No. 2198) relates to transportation funding in Minnesota. It establishes limitations on the use of interest or investment income generated from transportation revenue sources.

Key Provisions:

1. Investment of State-Aid Funds:

   • The bill amends Minnesota Statutes section 162.16 to state that money in the county state-aid highway fund and municipal state-aid street fund must be invested by the State Board of Investment.
     
   • All interest or profits generated from these investments must be credited back to the respective fund.

2. Limitations on Local Investment Income Usage:

   • The bill defines "transportation revenue source" to include:
     
     • Funds allocated to local governments under certain statutes.
       
     • Grants, loans, or state financial assistance for transportation projects.
       
     • Revenue from transportation-related taxes and fees (excluding filing fees from vehicle registration and licensing).
       
     • Reserves established from these revenue sources.
       
     • Debt instruments secured by these transportation-related revenues.
       
   • Local governments are required to use any interest or investment earnings from these transportation revenue sources only for transportation-related purposes.

Purpose:

The bill ensures that interest and investment income generated from transportation funds remain dedicated to transportation-related spending rather than being diverted for other uses by local governments.