SF 3782

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/09/2024 09:40am

A bill for an act
relating to capital investment; requiring local governments to establish a
replacement fund to maintain and replace capital projects that receive state funding;
proposing coding for new law in Minnesota Statutes, chapter 16A.

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

Section 1.

new text begin [16A.865] CAPITAL PROJECT REPLACEMENT ACCOUNTS.
new text end

new text begin Subdivision 1. new text end

new text begin Replacement account establishment. new text end

new text begin A political subdivision that receives
an appropriation of state money for a local capital improvement project must establish a
capital project replacement fund for major rehabilitation, expansion, or replacement of the
capital project. Money must remain in the account for the life of the grant agreement with
the granting state agency unless use of the fund is approved in writing by the commissioner
of management and budget for major rehabilitation, expansion, or replacement of the capital
project.
new text end

new text begin Subd. 2. new text end

new text begin Minimum deposits. new text end

new text begin The commissioner of management and budget must
determine the minimum deposit amounts into capital project replacement funds by capital
project type. The commissioner must take into account depreciation, construction cost
inflation, and other relevant factors when determining the minimum deposit amounts.
new text end

new text begin Subd. 3. new text end

new text begin Account auditing. new text end

new text begin The state auditor shall audit capital project replacement
accounts as part of the regular audits of local governments.
new text end

new text begin Subd. 4. new text end

new text begin Exceptions. new text end

new text begin Capital projects that already require a replacement fund under
section 446A.072, subdivision 12, or any other law, rule, or ordinance, are exempt from the
requirements under this section, so long as the deposits into the replacement fund are at
least as large as the minimum deposits established by the commissioner of management
and budget under subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for capital projects receiving state funding
on or after July 1, 2024.
new text end