SF3973

Purpose

This bill is part of Minnesota’s capital investment efforts. It provides funding for the Small Cities Assistance Program and authorizes the sale and issuance of state bonds to finance that funding.

Main Provisions

• Appropriation: $25,000,000 is appropriated from the bond proceeds fund to the commissioner of transportation for the Small Cities Assistance Program (under Minnesota Statutes §162.145).
• Bond sale: To fund the appropriation, the commissioner of management and budget shall sell and issue state bonds up to $25,000,000. The bonds are to be issued in the manner and with the effects prescribed by Minnesota statutes on bonding (Minnesota Statutes §§16A.631 to 16A.675) and by the Minnesota Constitution (Article XI, sections 4 to 7).
• Compliance: The bond issuance and the appropriation must follow the existing bonding process and constitutional requirements.

Effects and What It Seeks to Accomplish

• Provides dedicated funding for the Small Cities Assistance Program, which supports transportation-related or infrastructure needs in smaller Minnesota cities.
• Uses debt financing (state bonds) to raise the funds and directs them to the DOT for program administration.

Significant Changes to Existing Law

• Introduces a new appropriation of $25,000,000 from the bond proceeds fund specifically for the Small Cities Assistance Program.
• Establishes a mandate for the Commissioner of Management and Budget to issue bonds up to $25,000,000 under the standard bonding laws and constitutional requirements.
• This represents a funding and debt-issuance change to support the Small Cities Assistance Program within the capital investment framework.

Implementation Details (Summary)

• Funds go to the commissioner of transportation for the Small Cities Assistance Program.
• Bond issuance follows the standard process described in Minnesota bonding statutes and the state constitution.

Relevant Terms small cities assistance program appropriation bond proceeds fund commissioner of transportation Minnesota Statutes §162.145 bond sale state bonds commissioner of management and budget Minnesota Statutes §§16A.631 to 16A.675 Minnesota Constitution Article XI §§4–7 capital investment debt financing