Purpose

This bill would allocate money to support rural airports in Minnesota. Specifically, it provides a funding stream for grants to local governments that own airports which do not qualify for federal funding and are not part of the Federal Aviation Administration’s National Plan of Integrated Airport Systems (NPIAS). It also authorizes the sale of state bonds to fund these grants.

Main Provisions

• Subdivision 1 — Appropriation: Appropriates 10,000,000 dollars from the bond proceeds fund to the commissioner of transportation. The funds are for the rural airport program to grant money to local governments that own airports not qualifying for federal funding and not included in NPIAS.
• Subdivision 2 — Bond Sale: Allows the state to sell and issue bonds up to 10,000,000 dollars to finance the appropriation. Bond issuance follows Minnesota law (sections 16A.631 to 16A.675) and the Minnesota Constitution (article XI, sections 4 to 7).

Funding and Financing

• Source of funds: bond proceeds fund.
• Amount: 10,000,000 dollars.
• Use: grants to local governments for airports that lack federal funding and are not in NPIAS.
• Financing mechanism: authorizes the issuance and sale of bonds up to 10,000,000 dollars, with terms governed by specified state statutes and the state constitution.

Administration and Oversight

• Managing agency: commissioner of transportation administers the rural airport program and distributes the grants.
• Bond issuance oversight: the commissioner of management and budget is responsible for selling and issuing the bonds, under the specified statutes and constitutional provisions.

Significant Changes to Existing Law

• Establishes a dedicated funding mechanism (via bonds) to support rural, non-NPIAS airports that do not receive federal funding.
• Creates a formal appropriation and bond-backed program for local airport-related grants, expanding state support for rural aviation infrastructure outside federal programs.

Implications for Local Airports

• Eligible airports: those owned by local governments that do not qualify for federal funding and are not included in NPIAS.
• Expected impact: increased state funding for improvement, maintenance, or development of rural airports beyond what federal programs cover.

Relevant Terms

• Minnesota Rural Airport Program
• appropriation
• bond proceeds fund
• grants
• local governments
• airports not qualifying for federal funding
• not part of the Federal Aviation Administration National Plan of Integrated Airport Systems (NPIAS)
• bond sale / sale of bonds
• Minnesota Statutes sections 16A.631 to 16A.675
• Minnesota Constitution article XI sections 4 to 7
• Commissioner of Transportation
• Commissioner of Management and Budget

Relevant Terms - Minnesota Rural Airport Program - appropriation - bond proceeds fund - grants - local governments - airports not qualifying for federal funding - NPIAS - bond sale - 10,000,000 dollars - Commissioner of Transportation - Commissioner of Management and Budget - Minnesota Statutes 16A.631 to 16A.675 - Minnesota Constitution article XI sections 4 to 7