MN HF1236

Enacts the "Minnesota All-Government Bond Act" (chapters 16F.01-16F.11) to establish an alternative financing system allowing the state to issue bonds on behalf of political subdivisions through the Commissioner of Management and Budget.

Creates the Minnesota All-Government Debt Financing Fund to receive bond proceeds for loans to political subdivisions (cities, counties, towns, school districts, special service districts) and state projects authorized by the legislature.

Authorizes the State Board of Investment to market Minnesota All-Government State Bonds to public and private investors, with bonds maturing no later than 20 years and backed by the full faith and credit of the state.

Establishes loan conditions requiring political subdivisions to demonstrate financial ability to repay, maintain available records for inspection, and make annual repayment contributions by October 15; allows the commissioner to deny loans for legal, financial, or constitutional reasons.

Requires state auditor to levy property taxes to fund bond repayment and permits levy on defaulting political subdivisions' property; appropriates $150,000 to the commissioner as a revolving fund for initial bond issuance costs.