H.F. 2698 Summary

• Enacts the "Minnesota All-Government Bond Act" establishing an alternative financing system allowing the state to issue bonds and loan proceeds to political subdivisions instead of subdivisions issuing bonds directly.

• Creates the Minnesota all-government debt financing fund, which receives bond proceeds and is appropriated to the commissioner of management and budget for loans to political subdivisions and state projects authorized by the legislature.

• Commissioner may discretionary loan bond proceeds to cities, counties, towns, school districts, and other local government units that meet financial and legal requirements and agree to repay loans with specified conditions.

• State Board of Investment serves as fiscal agent to market bonds to public and private investors, with bonds maturing within 20 years, sold at minimum par plus accrued interest, and backed by state's full faith, credit, and taxing powers.

• Political subdivisions receiving loans must repay by October 15 annually, with state auditor authorized to levy property taxes on defaulting subdivisions to recover overdue payments plus interest and make future payments.