SF2880

SF2880 (Legislative Session 94 (2025-2026))

Local government debt financing modifications

Related bill: HF2730

AI Generated Summary

Purpose of the Bill

The bill aims to modify local government debt financing procedures in Minnesota. Specifically, it changes certain requirements for issuing bonds by counties and municipalities for capital improvements and other projects.

Main Provisions

County Capital Improvement Bonds: Counties can issue bonds to finance capital improvements without a public referendum, provided they are approved by three-fifths of the county board members (or two-thirds in a metropolitan county). Public notice and hearing are required before bond issuance.
State Guarantee for Debt Obligations: The bill outlines the process for counties and cities to apply for state guarantees on debt obligations issued for various construction and improvement projects. Applications must include specific documentation and fees.
Public Hearing Notices: The required notice period for public hearings related to certain governmental projects, including housing programs and redevelopment projects, is shortened from 15 to 10 days.
Application for Bond Allocation: Provides detailed requirements for local units applying for allocations of residential rental project bonds and other qualified bonds, including forms and application deposits.
Election Requirements for Bonds: For municipalities, the issuance of bonds for capital improvements under an approved plan must be approved by a majority of voters if a petition requesting a vote is filed by 5% of voters within 30 days of a public hearing.
Levy or Bonds for County Projects: Before construction of facilities such as jails or courthouses, counties must either levy taxes or issue bonds without requiring a public vote, provided the bond amount remains within a specified percentage of the property's market value in the county.

Significant Changes to Existing Law

Reduces the notice period for public hearings on bond issuance and project approval.
Clarifies and updates the procedural requirements for obtaining state guarantees and bond allocations.
Modifies election requirements for municipalities seeking to issue bonds for certain projects, aiming to simplify the process.

Relevant Terms

Local government debt financing
Capital improvements
Public facilities authority
Bond allocation
State guarantee
Application deposit
Public hearing notice
Election requirement
County bonds
Municipality bonds

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 23, 2025	Senate	Floor	Action	Introduction and first reading
March 23, 2025	Senate	Floor	Action	Referred to	Taxes

Citations

[
  {
    "analysis": {
      "added": [
        "Clarifies differences in board approval requirements between regular and metropolitan counties."
      ],
      "removed": [],
      "summary": "The amendment to section 373.40 subdivision 2 modifies election requirements for county bonds issued to finance capital improvements.",
      "modified": [
        "Adjusts the publication notice period before hearing from 14 days to ten days."
      ]
    },
    "citation": "373.40",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Revises aspects related to voter approval processes for certain bond issuances as stated in section 475.58 subdivision 1a.",
      "modified": [
        "Specifies applicability when voters do not approve the bond issuance."
      ]
    },
    "citation": "475.58",
    "subdivision": "subdivision 1a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This amendment alters the program review and public hearing notice requirements for housing programs as per section 462C.04 subdivision 2.",
      "modified": [
        "Reduces the notice period before the public hearing from 15 days to ten days."
      ]
    },
    "citation": "462C.04",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Clarifies requirements for project and bond types covered by the allocation."
      ],
      "removed": [],
      "summary": "Amends application requirements and processes for residential rental projects under section 474A.091 subdivision 2.",
      "modified": [
        "Specifies timelines for permanent issuance relative to allocation dates."
      ]
    },
    "citation": "474A.091",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Includes a public purpose scoring worksheet requirement for some applications."
      ],
      "removed": [],
      "summary": "This section modifies the application process for qualified bonds other than residential rental bonds under section 474A.091 subdivision 2a.",
      "modified": [
        "Specifies conditions for timelines and reallocation of unused allocations."
      ]
    },
    "citation": "474A.091",
    "subdivision": "subdivision 2a"
  },
  {
    "analysis": {
      "added": [
        "Option for notice posting on the municipality's official website if available."
      ],
      "removed": [],
      "summary": "Adjustments in section 475.521 subdivision 2 pertain to the election requirements for municipal bonds for capital improvements.",
      "modified": [
        "Changes the publication notice period before hearing from 14 days to ten days."
      ]
    },
    "citation": "475.521",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Modifies rules regarding funding provisions for the erection of county facilities within section 641.23.",
      "modified": [
        "Clarifies no-election bond issuance condition based on estimated market value percentage."
      ]
    },
    "citation": "641.23",
    "subdivision": ""
  }
]