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HF2675 (Legislative Session 94 (2025-2026))

Metropolitan Council prohibited from issuing certificates of participation in certain situations, and host counties required to fund specified aspects of guideways.

AI Generated Summary

Purpose of the Bill

The bill aims to regulate the financial actions of the Metropolitan Council regarding how certain transit projects are funded, specifically focusing on light rail transit guideways in Minnesota.

Main Provisions

  • Prohibition on Certificates of Participation: The bill prohibits the Metropolitan Council from issuing certificates of participation, which are a type of financing, for light rail transit systems. This restriction applies if the financing is to be secured either by a pledge of motor vehicle sales tax revenue or by any earnings from the investment of such revenues.

  • Funding Requirements for Host Counties: The bill imposes requirements on host counties to fund certain aspects of guideways, though the specific obligations are not detailed in the provided text.

Significant Changes to Existing Law

  • The proposed change to Minnesota Statutes modifies section 473.39, subdivision 7. It adds explicit limitations on the council's ability to use specific revenue sources (motor vehicle sales tax) to secure debt for light rail transit projects. This aims to potentially influence the financing mechanisms used for public transit infrastructure, thus impacting how future transit projects are initiated and managed.

Relevant Terms

  • Metropolitan Council
  • Certificates of participation
  • Light rail transit
  • Motor vehicle sales tax revenue
  • Guideways
  • Debt obligations
  • Financing restrictions

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 23, 2025HouseFloorActionIntroduction and first reading, referred toTransportation Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends a limitation on certain debt obligations involving the Metropolitan Council in section 473.39, subdivision 7.",
      "modified": [
        "Prohibits the issuance of certificates of participation for light rail transit guideways secured by specific tax revenues."
      ]
    },
    "citation": "473.39",
    "subdivision": "subdivision 7"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced in the amendment about the limitation on issuing certificates of participation.",
      "modified": []
    },
    "citation": "16A.88",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced in the amendment about the limitation on issuing certificates of participation.",
      "modified": []
    },
    "citation": "297B.09",
    "subdivision": ""
  }
]

Sponsors