HF1173

Purpose

This bill allocates money from state bond proceeds to support transportation-related economic development. Specifically, it sets up funding for grants under the Transportation Economic Development Infrastructure Program and authorizes the sale of state bonds to finance this appropriation.

Main Provisions

• Subdivision 1 – Appropriation: Amount of 5,000,000 dollars is appropriated from the bond proceeds fund to the commissioner of transportation for grants under Minnesota Statutes section 116J.436.
• Subdivision 2 – Bond sale: The commissioner of management and budget shall sell and issue bonds of the state up to 5,000,000 dollars to provide the money appropriated, following the terms and effects described in Minnesota statutes (16A.631 to 16A.675) and in the Minnesota Constitution (article XI, sections 4 to 7).

How it works in practice

• The Department of Transportation will use the funds to provide grants for transportation-related economic development and infrastructure projects.
• The funding is to be sourced by issuing state bonds; the borrowing must comply with the cited bonding statutes and constitutional provisions.

Impact on existing law

• Creates a new appropriation of 5,000,000 dollars from the bond proceeds fund for grants under 116J.436.
• Authorizes bond issuance up to 5,000,000 dollars to finance this appropriation.
• No changes are described to the grant program (116J.436) itself or to the bonding framework beyond enabling this specific funding via the bond sale.

Implementation notes

• Administration remains with the Department of Transportation for grant distribution under the existing 116J.436 framework.
• Bond issuance will follow the specified Minnesota statutes (16A.631 to 16A.675) and constitutional requirements of Article XI.

Significance

• Enables targeted investment in transportation infrastructure projects tied to economic development by providing dedicated funding through bonds.
• Uses standard state bonding and grant processes to fund transportation projects.

Relevant Terms - Transportation Economic Development Infrastructure Program - appropriation - bond proceeds fund - grants - Minnesota Statutes section 116J.436 - bond sale / sell and issue bonds - Minnesota Statutes sections 16A.631 to 16A.675 - Minnesota Constitution article XI sections 4 to 7 - Department of Transportation - Commissioner of Transportation - Commissioner of Management and Budget - capital investment - 5,000,000 dollars