HF 1131

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/08/2023 10:37am

A bill for an act
relating to capital investment; amending nonstate funding and capital project
submission requirements for projects requesting state assistance; amending
Minnesota Statutes 2022, sections 16A.502; 16A.86, subdivision 3a; repealing
Minnesota Statutes 2022, section 16A.86, subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 16A.502, is amended to read:

16A.502 NONSTATE COMMITMENTS TO CAPITAL PROJECTS.

new text begin (a) The state share of a capital project for which state assistance is requested by a political
subdivision is intended to fund no more than half the total cost of the project.
new text end

new text begin (b) new text end If a state appropriation or grant for a capital project or project phase is not sufficient,
by itself, to complete the project or project phase, and thus requires a commitment from
other sources:

(1) the commitment, including any required match, must be in an amount that, when
added to the appropriation or grant, is sufficient to complete the project or project phase;
and

(2) the appropriation or grant is not available until the commissioner has determined
that the commitment is sufficient.

new text begin (c) new text end In making the determination, the commissioner must apply generally accepted
governmental accounting standards and principles, including those that are particularly
applicable to capital projects.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2022, section 16A.86, subdivision 3a, is amended to read:

Subd. 3a.

Information provided.

All requests for state assistance under this section
must include the following information:

(1) the name of the political subdivision that will own the capital project for which state
assistance is being requested;

(2) the public purpose of the project;

(3) the deleted text begin extent to deleted text end new text begin percentage of funding necessary to complete the capital project or project
phase for new text end which the political subdivision has deleted text begin or expects to provide deleted text end new text begin secured new text end local, private,
user financing, or other nonstate funding for the project;

(4) a list of the bondable activities that the project encompasses; examples of bondable
activities are public improvements of a capital nature for land acquisition, predesign, design,
construction, and furnishing and equipping for occupancy;

(5) whether the project will require new or additional state operating subsidies;

(6) whether the governing body of the political subdivision requesting the project has
passed a resolution in support of the project and has established priorities for all projects
within its jurisdiction for which bonding appropriations are requested when submitting
multiple requests;

(7) if the project requires a predesign under section 16B.335, whether the predesign has
been completed at the time the capital project request is submitted, and whether the political
subdivision has submitted the project predesign to the commissioner of administration for
review and approval; and

(8) if applicable, the information required under section 473.4485, subdivision 1a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 16A.86, subdivision 4, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: 23-01550

16A.86 CAPITAL PROJECT GRANTS TO POLITICAL SUBDIVISIONS.

Subd. 4.

Funding.

(a) The state share of a project covered by this section must be no more than half the total cost of the project, including predesign, design, construction, furnishings, and equipment, except as provided in paragraph (b) or (c). This subdivision does not apply to a project proposed by a school district or other school organization.

(b) The state share may be more than half the total cost of a project if the project is deemed needed as a result of a disaster or to prevent a disaster or is located in a political subdivision with a very low average net tax capacity.

(c) Nothing in this section prevents the governor from recommending, or the legislature from considering or funding, projects that do not meet the deadline in subdivision 2 or a state share that is greater than half the total cost of the project when the governor or the legislature determines that there is a compelling reason for the recommendation or funding.