SF2198

SF2198 (Legislative Session 94 (2025-2026))

Certain limitations establishment on use of interest or investment income from transportation revenue

Related bill: HF268

AI Generated Summary

This bill (S.F. No. 2198) relates to transportation funding in Minnesota and establishes limitations on how interest or investment income from transportation revenue sources can be used.

Key Provisions:

Investment of State Aid Funds (Amendment to Minnesota Statutes 2024, Section 162.16)
- Money in the County State-Aid Highway Fund and the Municipal State-Aid Street Fund must be invested by the State Board of Investment in authorized securities.
- All interest and profits from these investments must be credited to the respective fund.
- The Commissioner of Management and Budget serves as the custodian of the purchased securities.
New Regulations on Local Investment Income (Adding a Subdivision)
- Defines transportation revenue sources, which include:
  - Funds provided to local governments for transportation projects.
  - State grants, loans, or financial assistance allocated for transportation projects.
  - Revenue from transportation-related taxes and fees.
  - Reserves established from transportation-related sources.
  - Certificates of indebtedness or other financial obligations secured by transportation revenue.
- Requires that any interest or investment earnings from these transportation revenue sources must be used exclusively for transportation purposes by local governments.

Purpose of the Bill:

This legislation ensures that income generated from state and local transportation funds is reinvested into transportation projects, preventing the diversion of these earnings to non-transportation purposes.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 05, 2025	House	Floor	Action	Introduction and first reading
March 05, 2025	Senate	Floor	Action	Introduction and first reading
March 05, 2025	House	Floor	Action	Referred to	Transportation
March 05, 2025	Senate	Floor	Action	Referred to	Transportation

Citations

[
  {
    "analysis": {
      "added": [
        "Clarification that investment must be in securities authorized in section 11A.21."
      ],
      "removed": [
        "Rewording of existing procedures without functional removal."
      ],
      "summary": "Modification of the investment rules for money in state-aid funds under section 162.16.",
      "modified": [
        "Enhancement of investment return handling and custodian responsibilities."
      ]
    },
    "citation": "162.16",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Use of section 11A.21 for guidance on permissible investments."
      ],
      "removed": [
        ""
      ],
      "summary": "Reference to securities authorized investments as per section 11A.21.",
      "modified": [
        "Aligns with permissible securities for transportation revenue investments."
      ]
    },
    "citation": "11A.21",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Clarifies sections applicable for considering revenue sources."
      ],
      "removed": [
        ""
      ],
      "summary": "Inclusion of section 16A.88 as a potential source for transportation revenue.",
      "modified": [
        "Ensures section 16A.88 is recognized as applicable under new constraints."
      ]
    },
    "citation": "16A.88",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Clarifies sections applicable for considering revenue sources."
      ],
      "removed": [
        ""
      ],
      "summary": "Inclusion of section 297A.815 as a potential source for transportation revenue.",
      "modified": [
        "Ensures section 297A.815 is recognized as applicable under new constraints."
      ]
    },
    "citation": "297A.815",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Link section 163.051 to transportation-related tax regulations."
      ],
      "removed": [
        ""
      ],
      "summary": "Reference to section 163.051 in relation to transportation-related taxes and fees.",
      "modified": [
        "Confirms its relevance for tax and fee assessment."
      ]
    },
    "citation": "163.051",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Aligns revenue management practices with section 297A.9915."
      ],
      "removed": [
        ""
      ],
      "summary": "Reference to section 297A.9915 for transportation revenue management.",
      "modified": [
        "Ensures compliance with tax allocation protocols."
      ]
    },
    "citation": "297A.9915",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Clarifies applicability of section 297A.992 to revenue processes."
      ],
      "removed": [
        ""
      ],
      "summary": "Reference to section 297A.992 for transportation revenue collections.",
      "modified": [
        "Aligns tax collection with section guidelines."
      ]
    },
    "citation": "297A.992",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Details inclusion of section 297A.993 in tax allocation."
      ],
      "removed": [
        ""
      ],
      "summary": "Reference to section 297A.993 for managing transportation-related taxation.",
      "modified": [
        "Security and compliance amendments for tax collections."
      ]
    },
    "citation": "297A.993",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Specified in relation to transportation tax and fee handling."
      ],
      "removed": [
        ""
      ],
      "summary": "Linkage to transportation-related activities under section 473.408.",
      "modified": [
        "Ensures alignment with section 473.408 mandates."
      ]
    },
    "citation": "473.408",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Recognition of applicability in financial management."
      ],
      "removed": [
        ""
      ],
      "summary": "Incorporation of section 473.446 for understanding transportation revenue impacts.",
      "modified": [
        "Clarification of implementation in revenue processes."
      ]
    },
    "citation": "473.446",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Specifically excludes application of section 168.33 from certain fee considerations."
      ],
      "removed": [
        ""
      ],
      "summary": "Exception noted for filing fees under section 168.33.",
      "modified": [
        "Clarified exclusions to prevent misapplication."
      ]
    },
    "citation": "168.33",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Specifically excludes application of section 171.061 from certain fee considerations."
      ],
      "removed": [
        ""
      ],
      "summary": "Exception noted for filing fees under section 171.061.",
      "modified": [
        "Clarified exclusions to prevent misapplication."
      ]
    },
    "citation": "171.061",
    "subdivision": ""
  }
]