MN SF3782

Political subdivisions receiving state appropriations for local capital improvement projects must establish a capital project replacement fund for major rehabilitation, expansion, or replacement of the project.

Money in replacement accounts must remain for the life of the grant agreement unless the commissioner of management and budget approves use of the funds in writing.

The commissioner of management and budget must determine minimum deposit amounts by capital project type, considering depreciation, construction cost inflation, and other relevant factors.

The state auditor shall audit capital project replacement accounts as part of regular local government audits.

Capital projects already required to maintain replacement funds under section 446A.072, subdivision 12, or other law are exempt if deposits meet the commissioner's minimum requirements.

The law is effective for capital projects receiving state funding on or after July 1, 2024.