Minnesota investment fund local government loan repayment funds restrictions temporary modification

A bill for an act

relating to economic development; temporarily modifying the restrictions on use

of Minnesota investment fund local government loan repayment funds; requiring

a report.

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

Section 1.
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ONETIME EXCEPTION TO RESTRICTIONS ON USE OF MINNESOTA

INVESTMENT FUND LOCAL GOVERNMENT LOAN REPAYMENT FUNDS.
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(a) Notwithstanding Minnesota Statutes, section 116J.8731, a home rule charter or

statutory city, county, or town that has uncommitted money received from repayment of

funding awarded under Minnesota Statutes, section 116J.8731, may choose to transfer 20

percent of the balance of the uncommitted money to the state general fund before June 30,

2027. Any local entity choosing to transfer the balance under this paragraph may then use

the remaining 80 percent of the uncommitted money as a general purpose aid for any lawful

expenditure.

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(b) By February 15, 2028, a home rule charter or statutory city, county, or town that

exercises the option under paragraph (a) shall submit to the chairs and ranking minority

members of the legislative committees with jurisdiction over economic development policy

and finance an accounting and explanation of the use and distribution of the money.

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EFFECTIVE DATE.

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This section is effective July 1, 2026.

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