HF2730 (Legislative Session 94 (2025-2026))
Local government debt financing modified.
Related bill: SF2880
AI Generated Summary
Purpose of the Bill
The bill is aimed at revising and updating the legal framework related to public financing and local government debt in Minnesota. It seeks to modify several statutes to streamline processes and eliminate some requirements currently placed on local governments when financing public projects through bonds.
Main Provisions
Election Requirements for Bonds: Revises the rules for issuing bonds by counties and municipalities. Under certain conditions, counties and municipalities may issue bonds for capital improvements without needing a public election if certain approval thresholds by local governing bodies are met.
Public Notice Requirements: Reduces the required notice period for public hearings on bond issuance from 14 days to 10 days in some cases, aiming to expedite the public financing process.
State Guarantee on Debt Obligations: Establishes a state guarantee for the payment of principal and interest on new and some current debt obligations, provided certain conditions are met including applications to be submitted before issuance for state coverage.
Public Hearing Process: Modifies the process and requirements for public hearings held by local municipalities on various financing projects by requiring publishing notices in certain newspapers and on official government websites.
Metropolitan Council & Regional Review: Requires local governments to submit plans to the Metropolitan Council or relevant regional development commission for review and comment on consistency with regional housing policies and comprehensive plans.
Significant Changes to Existing Law
Non-requirement of Elections: Provides conditions under which local governments can bypass the requirement for public elections when issuing bonds, instead requiring a majority vote from relevant governing bodies.
Changes to Voting Requirements: Adjusts the voting threshold required for the county boards and other municipal governing bodies to authorize bond issuance.
Application Requirements: Imposes certain administrative requirements on local entities to qualify for bond-related benefits, such as form submissions and application fees.
Relevant Terms
- Public Financing
- Local Government Debt
- Bond Issuance
- Election Requirements
- Minnesota Public Facilities Authority
- State Guarantee
- Metropolitan Council
- Regional Development Commission
- Notice Requirement
- Capital Improvement Plan
Bill text versions
- Introduction PDF file
Past committee meetings
- Taxes on: May 06, 2025 09:00
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 24, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
| May 07, 2025 | House | Floor | Action | Committee report, to adopt | |
| May 07, 2025 | House | Floor | Action | Second reading |
Citations
[
{
"analysis": {
"added": [
"Guidelines for public hearing notice publication timelines."
],
"removed": [],
"summary": "This bill modifies provisions related to the application of election requirements for county bonds under section 373.40 subdivision 2.",
"modified": [
"Changes the timeline for bond issuance after receiving a petition."
]
},
"citation": "373.40",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section cross-references modifications related to the issuance of bonds under certain conditions.",
"modified": [
"Clarifies procedures when bond issuance questions are not approved by voters."
]
},
"citation": "475.58",
"subdivision": "subdivision 1a"
},
{
"analysis": {
"added": [
"Clarifies the types of debt obligations and related infrastructure projects."
],
"removed": [],
"summary": "This bill amends definitions related to debt obligations under section 446A.086 subdivision 1.",
"modified": [
"Updated list of qualifying projects for debt obligations."
]
},
"citation": "446A.086",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced in guidelines related to application procedures for public facility grants.",
"modified": [
"Allows reference to this section for additional fee requirements."
]
},
"citation": "446A.087",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section governs the requirements for program review and public hearings for city housing programs.",
"modified": [
"Changes in the timelines for publication of notices before public hearings."
]
},
"citation": "462C.04",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced in context of the definition of the metropolitan area relating to program reviews.",
"modified": [
"Ensures program review processes are compliant with regional definitions."
]
},
"citation": "473.121",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "These sections apply to obligations under federal tax law conditions.",
"modified": [
"Clarifies when these sections are applicable in relation to federal tax law."
]
},
"citation": "474A.01 to 474A.21",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends election requirements for municipal bonds.",
"modified": [
"Outlines process for voter petitions and bond issuance timelines."
]
},
"citation": "475.521",
"subdivision": "subdivision 2"
}
]