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Bill would require transportation interest income to remain in transportation pool; committee lays it over with reporting amendment
Summary
House File 268 would direct local units that receive state transportation funds to keep interest and fee income within transportation pools and add reporting responsibilities; Representative Cagle offered an amendment adding a reporting component and the committee laid the bill over.
ST. PAUL — House File 268, introduced in committee by a member who said he authored the measure, would require local units of government that receive state transportation funds to retain fees and interest earned on those funds within the transportation pool rather than diverting the returns elsewhere.
The sponsor explained the bill was suggested by a local unit of government as a governance measure to ensure that interest and fee income derived from state transportation dollars remains available to transportation purposes. Representative Cagle offered an amendment that would add a reporting requirement so recipients compile and submit reports showing how retained interest income is spent.
Committee members discussed budget trade-offs and reporting burdens; Chair Kosnick said the bill would be laid over so the committee could continue deliberation and refine the reporting language.
Why it matters: Retained interest on pooled funds can be a modest but recurring source of revenue for local transportation work; requiring the earnings to stay in the transportation pool and to be reported could improve transparency and ensure funds are used for intended infrastructure purposes.
Action: House File 268 was laid over for further consideration; Representative Cagle’s reporting amendment was accepted for further work.
