MN SF2875

Establishes the "Minnesota All-Government Bond Act" creating an alternative financing system allowing the state to issue bonds on behalf of political subdivisions instead of subdivisions issuing bonds directly.

Creates the Minnesota all-government debt financing fund to receive bond proceeds, which are used for loans to political subdivisions and state projects authorized by the legislature.

Authorizes the Commissioner of Management and Budget to issue Minnesota all-government state bonds with full faith and credit backing, with the State Board of Investment serving as fiscal agent to market the bonds.

Allows political subdivisions to apply for loans from bond proceeds if they meet eligibility requirements; requires loan repayment by October 15 annually and includes provisions for withholding amounts for debt service.

Establishes a dedicated bond repayment account and authorizes annual state tax levies on all taxable property to pay principal and interest, with the state auditor able to levy property taxes on defaulting subdivisions to recover payments.