HF2675 • 2026

Metropolitan Council prohibited from issuing certificates of participation in certain situations, and host counties required to fund specified aspects of guideways.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Koznick
Last action: 2025-03-24
Official status: Introduction and first reading, referred to Transportation Finance and Policy
Effective date: Not listed

Plain English Breakdown

The official source does not specify the exact details on how costs are to be divided among host counties, leaving this as an open question.

Metropolitan Council Can't Issue Certificates for Some Projects; Counties Must Pay for Guideways

This law stops the Metropolitan Council from issuing certain financial certificates for guideway projects if they are paid with motor vehicle sales tax revenue or earnings from investing that money, and requires counties to fund parts of these guideways when other funds are not enough.

What This Bill Does

The Metropolitan Council cannot issue 'certificates of participation' for guideways if the funding is secured by motor vehicle sales tax revenue or its investment earnings.
Counties must cover planning, design, construction, and other costs related to guideway projects when federal, state, local government, or other funds are insufficient.
Host counties must pay operating costs of guideway services beyond what fare revenues and other funding can cover.
Counties also need to fund maintenance, replacement, and modernization costs that go beyond available federal, state, local government, or other funds.

Who It Names or Affects

The Metropolitan Council
Counties in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington

Terms To Know

guideways: Transportation infrastructure such as light rail or bus rapid transit systems.
certificates of participation: Financial documents used to raise money for projects by promising a share of future revenue.

Limits and Unknowns

The law only applies in specific counties: Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
It is unclear how the costs will be divided among host counties.

Bill History

2025-03-24 House
Introduction and first reading, referred to Transportation Finance and Policy

Official Summary Text

Metropolitan Council prohibited from issuing certificates of participation in certain situations, and host counties required to fund specified aspects of guideways.

Current Bill Text

Read the full stored bill text

A bill for an act

relating to transit; prohibiting the Metropolitan Council from issuing certificates

of participation in certain situations; requiring host counties to fund specified

aspects of guideways; amending Minnesota Statutes 2024, section 473.39,

subdivision 7; proposing coding for new law in Minnesota Statutes, chapter 473.

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

Section 1.

Minnesota Statutes 2024, section 473.39, subdivision 7, is amended to read:

Subd. 7.

Limitation on certain debt obligations.

The council is prohibited from issuing

certificates of participation for
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light rail transit
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guideways
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secured in whole or in part by

(1) a pledge of motor vehicle sales tax revenue received under sections
16A.88
and
297B.09
,

or (2) a pledge of any earnings from the council's investment of motor vehicle sales tax

revenues.

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EFFECTIVE DATE; APPLICATION.

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This section is effective July 1, 2025, and

applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

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Sec. 2.

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[473.4487] COUNTY RESPONSIBILITY FOR GUIDEWAY FUNDING.

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(a) Counties must fund guideways, as defined in section 473.4485, subdivision 1,

paragraph (d), including current and future guideways pursuant to the requirements in this

section.

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(b) A host county or counties must fund:

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(1) planning, design, engineering, construction, prerevenue operations, and other costs

associated with guideway development that exceed federal, state, local government, or other

funds dedicated to the guideway. This requirement pertains to all costs associated with

guideway development, including associated costs not eligible for federal funding;

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(2) operating costs of guideway services determined by the service operator to be

necessary to meet reasonable standards for access, safety, and reliability and that exceed

fare revenues and federal, state, local government, or other funds dedicated to the guideway;

and

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(3) capital maintenance, replacement, and modernization costs determined by the operator

of guideway services to be necessary to meet reasonable standards for access, safety,

reliability, and upkeep of the guideway and that exceed federal, state, local government, or

other funds dedicated to the guideway.

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(c) For purposes of this section, "host county or counties" means those counties where

the guideway is located.

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(d) The distribution of costs among host counties must be delineated through a

proportional methodology agreed to by the host counties.

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EFFECTIVE DATE; APPLICATION.

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This section is effective July 1, 2025, and

applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

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