Minneslate Logo

SF2862 (Legislative Session 94 (2025-2026))

Annual volume cap allocations and allocation procedure modification for public facility projects funded by public facility bonds

Related bill: HF2252

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to modify Minnesota's procedures for allocating the annual volume cap on bonds related to public facility projects. These modifications are intended to improve the efficiency and distribution of bond allocations for economic development, housing, and public facility projects.

Main Provisions

  • Bond Allocation Adjustments: The bill revises the allocation percentages for bond pools. It increases the amount allocated to the public facilities pool and adjusts the reserved percentages for single-family housing programs.
  • Application Procedures: It updates the rules for issuers applying for bond allocations. This includes requirements such as providing a preliminary resolution, a bond counsel statement, and a public purpose scoring worksheet. It also changes the application deposit to 2% of the requested allocation.
  • Issuance Deadlines: The bill extends the timeframe for issuers to permanently issue obligations from 120 days to 180 days after receiving an allocation.
  • Priority Order for Allocations: The bill specifies a priority order for the allocation of bonds from the unified pool, favoring applications for residential rental projects and public facility projects initially, then opening for other types such as manufacturing and agricultural bonds.

Significant Changes to Existing Law

  • Reserved Pools and Priorities: Changes the reserved amounts and priority order for bond allocations from the unified pool for different projects through different periods in the year.
  • Changes in Allocation Timeframes: Extends deadlines for the permanent issuance of obligations by issuers, allowing more time for bond issuance.
  • Scope of Mortgage and Student Loan Bonds: Limits total allocations for mortgage bonds per city or county and for student loan bonds per year.

Relevant Terms

  • Economic development
  • Public facility bonds
  • Volume cap
  • Housing pool
  • Unified pool
  • Bond allocation
  • Single-family housing programs
  • Public facilities pool

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025SenateFloorActionIntroduction and first reading
March 19, 2025SenateFloorActionReferred toJobs and Economic Development
March 19, 2025SenateFloorActionReferred toJobs and Economic Development

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill modifies the annual volume cap allocations under section 474A.03, subdivision 1, which pertains to the allocation of bonding authority under federal tax law.",
      "modified": [
        "Adjusts allocation amounts for small issue pool, housing pool, and public facilities pool."
      ]
    },
    "citation": "474A.03",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section addresses applications for qualified bond allocations under section 474A.091, subdivision 2a.",
      "modified": [
        "Changes application deadlines and procedures for issuers seeking bond allocations."
      ]
    },
    "citation": "474A.091",
    "subdivision": "subdivision 2a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill modifies the allocation procedure under section 474A.091, subdivision 3.",
      "modified": [
        "Reorders priorities and adjusts award conditions for various types of bonds."
      ]
    },
    "citation": "474A.091",
    "subdivision": "subdivision 3"
  }
]

Sponsors