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SF2862 (Legislative Session 94 (2025-2026))

Annual volume cap allocations and allocation procedure modification for public facility projects funded by public facility bonds

Related bill: HF2252

AI Generated Summary

Purpose of the Bill

This legislative proposal focuses on economic development by modifying how annual volume cap allocations and procedures are structured for public facility projects funded by public facility bonds in Minnesota.

Main Provisions

  • Volume Cap Allocations: The bill revises the distribution of bonding authority amongst different pools, updating the amounts allocated to various sectors, including small issue, housing, and public facilities pools.
  • Application for Bonds: Changes the application process for qualified bonds. This includes:
    • Introducing a requirement for a preliminary resolution and bond counsel statement.
    • Specifying an application deposit of two percent of the requested allocation.
    • Necessitating a public purpose scoring worksheet for certain applications.
  • Issuance Requirements: Adjusts the deadline by which issuers must use their allocations from 120 to 180 days. If unused, allocations are returned to the unified pool for reallocation.
  • Allocation Procedure: Specifies detailed priorities for awarding allocations from the unified pool before and after October 1, differentiating among bond types:
    • Prioritizes residential rental project bonds and public facility projects earlier in the year.
    • Changes the order of priority for other projects like student loans, mortgage bonds, and small issue bonds based on the time of year.

Significant Changes to Existing Law

  • Increases allocations for public facility projects, encouraging infrastructure development.
  • Amplifies oversight and strategic distribution of allocations through modified application and awarding procedures.
  • Imposes stricter timelines and conditions for the use of allocated funds to ensure efficient and effective use of public resources.

Relevant Terms

economic development, volume cap allocations, public facility projects, public facility bonds, bonding authority, application process, small issue pool, housing pool, allocation procedure, mortgage bonds, unified pool, residential rental project bonds, student loan bonds, Minnesota legislature.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025SenateFloorActionIntroduction and first reading
March 19, 2025SenateFloorActionReferred toJobs and Economic Development

Citations

 
[
  {
    "analysis": {
      "added": [
        "Changes in the percentage of the adjusted allocation reserved for single-family programs after June each year."
      ],
      "removed": [],
      "summary": "This bill modifies the allocation of the annual volume cap under section 474A.03 relating to economic development and public facility projects.",
      "modified": [
        "Adjustments in the allocation amounts for various pools, including small issue, housing, and public facilities pools."
      ]
    },
    "citation": "474A.03"
  },
  {
    "analysis": {
      "added": [
        "New order of priority for applications receiving allocation from the unified pool before and after October 1."
      ],
      "removed": [
        "Previous restrictions on entitlement issuers applying for mortgage bonds before the first Monday in October."
      ],
      "summary": "Amendments to the allocation procedure for public facility projects funded by public facility bonds under section 474A.091.",
      "modified": [
        "Altered timelines and conditions for the issuance of obligations under received allocations."
      ]
    },
    "citation": "474A.091"
  }
]

Sponsors