SF 4115

as introduced - 91st Legislature (2019 - 2020) Posted on 03/10/2020 08:45am

A bill for an act
relating to capital investment; establishing procedures for determining a compelling
reason to waive or modify the nonstate match requirement for funding a project
with bond proceeds; amending Minnesota Statutes 2018, section 16A.86,
subdivisions 2, 4.

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

Section 1.

Minnesota Statutes 2018, section 16A.86, subdivision 2, is amended to read:

Subd. 2.

Budget request.

A political subdivision that requests an appropriation of state
money for a local capital improvement project is encouraged to submit the request to the
commissioner of management and budget by July 15 of an odd-numbered year to ensure
its full consideration. The requests must be submitted in the form and with the supporting
documentation required by the commissioner of management and budget. All requests
timely received by the commissioner must be submitted to the legislature, along with the
governor's recommendations, whether or not the governor recommends that a request be
funded, by the deadline established in section 16A.11, subdivision 1. new text begin A political subdivision
that requests state funding of more than half the total cost of the project must describe how
the project meets the criteria specified in section 16A.86, subdivision 4, paragraph (c).
new text end

Sec. 2.

Minnesota Statutes 2018, section 16A.86, subdivision 4, is amended to read:

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 deleted text begin . deleted text end new text begin ,
through consideration of the following criteria:
new text end

new text begin (1) the value of the project, as evidenced by the following criteria:
new text end

new text begin (i) the regional or statewide significance of the project;
new text end

new text begin (ii) effectiveness of the proposed project to resolve an infrastructure need;
new text end

new text begin (iii) the number of people who will be positively impacted by the project;
new text end

new text begin (iv) the project's contribution to other local, regional, or state economic development or
redevelopment efforts;
new text end

new text begin (v) whether the project is required by state or federal law;
new text end

new text begin (vi) the ability of the political subdivision to adequately provide for the safe operation
and maintenance of the facility upon project completion;
new text end

new text begin (vii) the degree to which the project is expected to result in or will attract substantial
public and private capital investment and provide substantial economic benefit to the county
or city in which the project would be located;
new text end

new text begin (viii) whether the project is relocating substantially the same operation from another
location in the state unless the project cannot be reasonably accommodated within the county
or city in which the business is currently located, or the business would otherwise relocate
to another state; and
new text end

new text begin (ix) the number of full-time jobs that the project will create or retain; and
new text end

new text begin (2) the financial need for state funding of more than half, as evidenced by the following
criteria:
new text end

new text begin (i) financial hardship on people who would be required to pay the nonstate share of the
project cost;
new text end

new text begin (ii) debt carried by and debt capacity of the political subdivision;
new text end

new text begin (iii) the degree to which the political subdivision has exercised the local option sales
tax; and
new text end

new text begin (iv) the foreseeability of the need for the project and the efforts that the political
subdivision has made to save or raise money to pay for the project, including soliciting
contributions from other political subdivisions that benefit from the project.
new text end

new text begin (d) Amounts received by a political subdivision from the state through any transfer,
grant, aid, apportionment, allotment, for any purpose, and that are committed to the project,
must count toward the state share under this section.
new text end