Local government debt financing modified.

A bill for an act

relating to taxation; public finance; modifying local government debt financing;

amending Minnesota Statutes 2024, sections 123B.595, subdivision 5; 297A.993,

subdivision 4; 469.060, subdivision 3.

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

Section 1.

Minnesota Statutes 2024, section 123B.595, subdivision 5, is amended to read:

Subd. 5.

Bond authorization.

(a) A school district may issue general obligation bonds

under this section to finance facilities plans approved by its board and the commissioner.

Chapter 475, except sections
475.58
and
475.59
, must be complied with. The authority to

issue bonds under this section is in addition to any bonding authority authorized by this

chapter or other law. The amount of bonding authority authorized under this section must

be disregarded in calculating the bonding or net debt limits of this chapter, or any other law

other than section
475.53, subdivision 4
.

(b) At least 20 days before
deleted text begin
the earliest of
deleted text end
the issuance of bonds
deleted text begin
or the final certification

of levies under subdivision 6
deleted text end
, the district must publish notice of the intended projects, the

amount of the bond issue, and the total amount of district indebtedness
new text begin
currently outstanding
new text end
.
new text begin

Failure to give notice as described in this paragraph does not affect the validity of the bonds.
new text end

(c) The portion of revenue under this section for bonded debt must be recognized in the

debt service fund.

Sec. 2.

Minnesota Statutes 2024, section 297A.993, subdivision 4, is amended to read:

Subd. 4.

Bonds.

(a) A county may, by resolution, authorize, issue, and sell its bonds,

notes, or other obligations for the purposes specified in subdivision 2. The county may also,

by resolution, issue bonds to refund the bonds issued pursuant to this subdivision.

(b) The bonds may be limited obligations, payable solely from or secured by taxes levied

under this section, and the county may also pledge its full faith, credit, and taxing power as

additional security for the bonds. A regional railroad authority within the county may also

pledge its taxing powers as additional security for the bonds.

(c) A county may issue and sell bonds in one or more series and without an election.

The county may determine how the bonds shall be secured; how the bonds will bear interest,

and the rate or rates, or variable rate; the rank or priority; how the bonds will be executed

and be payable, and how they will mature; and how the bonds will be subject to any defaults,

redemptions, repurchases, tender options, or other terms. The county may also determine

how the bonds shall be sold.

(d) The county may enter into and perform all contracts deemed necessary or desirable

by it to issue and secure the bonds, including an indenture of trust with a trustee located

within or outside of the state.

(e) Before issuing bonds qualifying under this section, the county must publish a notice

of its intention to issue the bonds and the date and time of a hearing to obtain public comment

on the matter. The notice must be published in the official newspaper of the county or in a

newspaper of general circulation in the county. The notice must be published at least
deleted text begin
14
deleted text end
new text begin

ten
new text end
, but not more than 28, days before the date of the hearing.

(f) Any project financed with bonds issued under this section must be included in a

capital improvement plan as defined in section
373.40, subdivision 3
. For purposes of this

paragraph, "project" means any project described in subdivision 2, notwithstanding section

373.40, subdivision 1
, paragraph (b).

(g) Except as otherwise provided in this subdivision, the bonds must be issued and sold

in the manner provided under chapter 475.

Sec. 3.

Minnesota Statutes 2024, section 469.060, subdivision 3, is amended to read:

Subd. 3.

Detail; maturity.

The port authority with the consent of its city's council shall

set the date, denominations, place of payment, form, and details of the bonds.
deleted text begin
The bonds

must mature serially.
deleted text end
The first installment must be due in not more than three years and the

last in not more than 30 years from the date of issuance.