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SF4386 (Legislative Session 94 (2025-2026))

Metropolitan Council issuing certificates of participation prohibition in certain situations, specified aspects of guideways funded by host counties requirement provision

Related bill: HF2675

AI Generated Summary

Purpose

  • The bill aims to limit how the Metropolitan Council can finance light rail transit guideways by restricting certain debt methods. It particularly targets debt instruments tied to motor vehicle sales tax (MVST) revenue and earnings from MVST investments, and it signals a shift of some funding responsibilities to host counties.

Main provisions

  • Amends Minnesota Statutes 2024 section 473.39, subdivision 7, to create a new limitation on certain debt obligations.
  • The Metropolitan Council is prohibited from issuing certificates of participation (CPs) for light rail transit guideways if those guideways are secured in whole or in part by:
    • a pledge of motor vehicle sales tax revenue received under sections 16A.88 and 297B.09, or
    • a pledge of any earnings from the council’s investments of MVST revenues.
  • The bill also describes situations where host counties would be required to fund specified aspects of guideways, in the context of these financing limits.
  • The changes are codified by amending Minnesota Statutes and adding new language related to debt obligations for light rail guideways (i.e., CPs) in chapter 473.

Significant changes to existing law

  • Narrows the Metropolitan Council’s ability to use certificates of participation to finance light rail guideways when those projects are backed by MVST revenue or earnings from MVST investments.
  • Shifts potential funding responsibility toward host counties in certain guideway financing scenarios.
  • Updates the statutory framework for debt obligations related to light rail guideways by adding a specific limitation on CPs tied to MVST revenues and earnings.

Practical implications

  • Financing for certain light rail projects may require alternative funding sources or structures, since CPs backed by MVST revenue or earnings could be prohibited.
  • The role and financial contribution of host counties may increase for some guideway components, depending on how the bill’s provisions are applied in practice.

Terminology and key phrases to note

  • Metropolitan Council
  • certificates of participation (CPs)
  • light rail transit guideways
  • motor vehicle sales tax revenue (MVST)
  • MVST revenue sources: sections 16A.88 and 297B.09
  • earnings from investments of MVST revenues
  • debt obligations
  • host counties
  • Minnesota Statutes 2024, section 473.39, subdivision 7
  • new statutory language for limit on CPs

Relevant Terms - Metropolitan Council - certificates of participation - light rail transit guideways - motor vehicle sales tax revenue - MVST - sections 16A.88 and 297B.09 - earnings from investments - debt obligations - host counties - Minnesota Statutes 2024 - section 473.39, subdivision 7

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2026SenateActionIntroduction and first reading
March 12, 2026SenateActionReferred toTransportation

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends Minnesota Statutes 2024 section 473.39, subdivision 7 to add a limitation on debt obligations by prohibiting the Metropolitan Council from issuing certificates of participation for light rail transit guideways secured in whole or in part by motor vehicle sales tax revenue received under sections 16A.88 and 297B.09 or by earnings from the council's investment of motor vehicle sales tax revenues.",
      "modified": [
        "Replaces Subd. 7 language with a new limitation on debt obligations related to certificates of participation for light rail transit guideways."
      ]
    },
    "citation": "473.39 Subd. 7",
    "subdivision": "Subd. 7"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cited in the amended Subd. 7 as the source of motor vehicle sales tax revenue.",
      "modified": []
    },
    "citation": "16A.88",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cited in the amended Subd. 7 as the source of motor vehicle sales tax revenue.",
      "modified": []
    },
    "citation": "297B.09",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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