SF295

Purpose

The bill would provide funding for the Transportation Economic Development Program by appropriating money from the state’s trunk highway bond proceeds and authorizing the sale of trunk highway bonds to raise those funds.

Main Provisions

• Appropriation: Allocates $15,000,000 from the bond proceeds account in the trunk highway fund to the Minnesota Department of Transportation for use under the Transportation Economic Development Program (as defined in Minnesota Statutes).
• Bonding authorization: Requires the Commissioner of Management and Budget to sell and issue state bonds up to $15,000,000 to cover the appropriated amount, following the terms and conditions specified in state bonding laws and the state constitution.
• Use of bond proceeds: The money raised from the bond sale (excluding accrued interest and any premium from the sale) must be deposited into the bond proceeds account in the trunk highway fund.

Relationship to Existing Law

• Ties the appropriation to the Transportation Economic Development Program defined in Minnesota Statutes (section 174.12), and uses standard state bond issuance procedures found in Minnesota Statutes (sections 167.50 to 167.52) and the state constitution (Article XIV, section 11).
• Sets the funding mechanism through the trunk highway fund and its bond proceeds account.

Significance and Impact

• Adds a new, specific funding source (bond proceeds) and a new bonding authorization to support transportation-related economic development grants.
• Increases debt financing capacity for transportation projects, with funds directed to the Transportation Economic Development Program.

Administration and Compliance

• Implementation and timing are to follow existing statutory processes for bond issuance and fund disposition, overseen by the appropriate state agencies (Commissioner of Transportation and Commissioner of Management and Budget).

What changes are being made

• Creates an explicit appropriation of $15,000,000 and the corresponding authority to issue up to $15,000,000 in trunk highway bonds to fund the Transportation Economic Development Program.

Relevant Terms bond proceeds account trunk highway fund Transportation Economic Development Program Minnesota Statutes section 174.12 Subd 2 bond sale Commissioner of Management and Budget Commissioner of Transportation Minnesota Statutes sections 167.50 to 167.52 Minnesota Constitution Article XIV Section 11 accrued interest premium from the sale of the bonds proceeds of the bonds state bonds bond proceeds account in the trunk highway fund