HF1455

Purpose

This bill authorizes a new funding and bonding package to support flood hazard mitigation in Area II of the Minnesota River Basin. It provides for the state’s share of a flood hazard mitigation grant to fund capital improvements that aim to prevent or lessen flood damage in Area II.

Main Provisions

• Allocation of funds: An amount of 1,500,000 is appropriated from the bond proceeds fund to the Board of Water and Soil Resources (BWSR).
• Recipient and purpose: The funds are to be granted to Minnesota River Basin Projects for the state's share of a flood hazard mitigation grant, specifically for capital improvements to prevent or alleviate flood damage in Area II of the Minnesota River Basin.
• Availability condition: The appropriation may not be available for use until the board determines that nonstate sources have been committed for every $3 of state grant (i.e., a matching contribution from nonstate sources is required before funds can be accessed).
• Bonding authorization: The commissioner of management and budget is directed to sell and issue bonds of the state in an amount up to 1,500,000 to finance the appropriation.
• Authority and process: Bonding must be conducted under the terms and effects described by Minnesota Statutes sections 16A.631 to 16A.675 and by the Minnesota Constitution article XI sections 4 to 7.

Significant Changes to Existing Law

• Establishes a new appropriation and bonding authorization specifically for flood hazard mitigation in Area II of the Minnesota River Basin.
• Introduces a mandatory nonstate matching requirement before the state funds can be accessed, tying state aid to secured nonstate funding.
• Expands the use of the bond proceeds fund to support flood mitigation capital improvements with a defined project area and recipient.

Funding and Financial Details

• Total appropriation: 1,500,000 from the bond proceeds fund.
• Source and mechanism: Bond proceeds fund; financed through state bonds.
• Bonding process: Sale and issuance of bonds up to 1,500,000 under existing state bonding statutes and constitutional provisions.

Agencies Involved

• Board of Water and Soil Resources (BWSR) – recipient of the grant for flood hazard mitigation.
• Minnesota River Basin Projects – identified as the grantee for the state’s share.
• Minnesota Management and Budget – responsible for issuing the bonds.
• Statutory references: Minnesota Statutes 16A.631 to 16A.675 and Minnesota Constitution Article XI, Sections 4–7.

Implementation Considerations

• The project depends on securing nonstate funding commitments as a condition precedent to access of the appropriation.
• The bill aligns with bond financing procedures already established in state law, ensuring standard oversight and process for bond sales.

Relevant Terms

• flood hazard mitigation
• capital improvements
• Area II
• Minnesota River Basin
• Board of Water and Soil Resources
• Minnesota River Basin Projects
• grant
• state grant
• nonstate sources
• matching funds
• bond proceeds fund
• bonds
• bond sale
• Minnesota Statutes 16A.631 to 16A.675
• Minnesota Constitution Article XI, Sections 4–7

Relevant Terms - flood hazard mitigation - capital improvements - Area II - Minnesota River Basin - Board of Water and Soil Resources - Minnesota River Basin Projects - grant - nonstate sources - matching funds - bond proceeds fund - bonds - bond sale - 16A.631 to 16A.675 - Constitution Article XI