HF 3377

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/17/2026 11:31 a.m.

A bill for an act
relating to local government; requiring referendums for certain capital improvement
projects by economic development authorities; amending Minnesota Statutes 2024,
sections 465.71; 469.103, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2024, section 465.71, is amended to read:

465.71 INSTALLMENT, LEASE PURCHASE; CITY, COUNTY, TOWN,
SCHOOL.

new text begin Subdivision 1. new text end

new text begin Generally. new text end

A home rule charter city, statutory city, county, town, or
school district may purchase personal property under an installment contract, or lease real
or personal property with an option to purchase under a lease-purchase agreement, by which
contract or agreement title is retained by the seller or vendor or assigned to a third party as
security for the purchase price, including interest, if any, but such purchases are subject to
statutory and charter provisions applicable to the purchase of real or personal property. For
purposes of the bid requirements contained in section 471.345, "the amount of the contract"
shall include the total of all lease payments for the entire term of the lease under a
lease-purchase agreement. The obligation created by an installment contract or a
lease-purchase agreement for personal property, or an installment contract or a lease-purchase
agreement for real property if the amount of the contract for purchase of the real property
is less than $1,000,000, shall not be included in the calculation of net debt for purposes of
section 475.53, and shall not constitute debt under any other statutory provision. new text begin Except as
required under subdivision 2, new text end no election shall be required in connection with the execution
of an installment contract or a lease-purchase agreement authorized by this section. The
city, county, town, or school district must have the right to terminate a lease-purchase
agreement at the end of any fiscal year during its term.

new text begin Subd. 2. new text end

new text begin Referendum in certain cases. new text end

new text begin A home rule charter city or statutory city must
follow the election requirements under section 475.521, subdivision 2, to enter any
lease-purchase agreement that is: (1) for real or personal property that qualifies as a capital
improvement under section 475.521, subdivision 1, paragraph (b); and (2) financed by
revenue bonds issued by an economic development authority exercising the powers under
sections 469.090 to 469.108.
new text end

Sec. 2.

Minnesota Statutes 2024, section 469.103, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Referendum for certain revenue bonds. new text end

new text begin (a) An authority must follow the
election requirements under section 475.521, subdivision 2, to issue a revenue bond to
finance a project that: (1) qualifies as a capital improvement under section 475.521,
subdivision 1, paragraph (b); and (2) will be leased to a home rule charter city or statutory
city for its use.
new text end

new text begin (b) For purposes of this subdivision, "authority" means an economic development
authority exercising the powers under sections 469.090 to 469.108.
new text end