SF29

Purpose

This bill aims to fund infrastructure support for the Small Cities Assistance Program by authorizing the state to borrow money. It directs a specific amount of money to be provided through bond financing to support small cities, using established state bonding rules.

Main Provisions

• Subdivision 1 – Appropriation: It appropriates $25,000,000 from the bond proceeds fund to the commissioner of transportation for the Small Cities Assistance Program (as authorized by Minnesota Statutes section 162.145).
• Subdivision 2 – Bond sale: It requires the commissioner of management and budget to sell and issue state bonds up to $25,000,000 to finance the appropriation. The bonds would be issued under the terms of Minnesota Statutes sections 16A.631 to 16A.675 and in accordance with Minnesota Constitution Article XI, sections 4 to 7.

Significance and Impact

• Creates a new funding mechanism (bond financing) for the Small Cities Assistance Program.
• Establishes a specific appropriation of $25 million and directs how that money will be raised (through the sale of state bonds) to support small-city needs.
• Ties the financing to existing state law and constitutional provisions, ensuring established procedures for issuing bonds are followed.

Significant Changes to Existing Law

• Adds a targeted $25,000,000 appropriation to fund the Small Cities Assistance Program through the bond proceeds fund.
• Mandates the sale and issuance of up to $25,000,000 in state bonds to finance that appropriation, using existing bonding statutes and constitutional provisions.

Terminology Inclusion

• small cities assistance program
• bond proceeds fund
• appropriation
• commissioner of transportation
• Minnesota Statutes section 162.145
• bond sale / sale and issuance of state bonds
• $25,000,000 (twenty-five million)
• commissioner of management and budget
• Minnesota Statutes sections 16A.631 to 16A.675
• Minnesota Constitution article XI sections 4 to 7

Relevant Terms

• small cities assistance program
• bond proceeds fund
• appropriation
• commissioner of transportation
• Minnesota Statutes section 162.145
• bond sale
• state bonds
• $25,000,000
• commissioner of management and budget
• Minnesota Statutes sections 16A.631 to 16A.675
• Minnesota Constitution article XI sections 4 to 7