SF 3878

as introduced - 91st Legislature (2019 - 2020) Posted on 03/11/2020 11:13am

A bill for an act
relating to transportation; providing for deposit of certain revenues and security
for certain federal loans; establishing accounts; appropriating money; amending
Laws 2010, chapter 351, section 69; proposing coding for new law in Minnesota
Statutes, chapter 169.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [169.882] DEPOSIT OF CERTAIN REVENUES; SECURITY FOR LOAN.
new text end

new text begin Subdivision 1. new text end

new text begin Security for federal loan agreement. new text end

new text begin A loan entered into by the
commissioners of transportation and management and budget pursuant to Laws 2010, chapter
351, section 69, and any interest thereon shall be payable solely from and secured by the
revenues appropriated and transferred to the loan fund established for this purpose in
subdivision 4 and investment income thereon and any reserve established for the loan. The
loan is not public debt, and the full faith, credit, and taxing powers of the state are not
pledged for its payment. The loan and the interest thereon shall not be paid, directly or
indirectly, in whole or in part, from a tax of statewide application on any class of property,
income, transaction, or privilege.
new text end

new text begin Subd. 2. new text end

new text begin Special revenue account established; nondedicated permit fees defined. new text end

new text begin (a)
Notwithstanding section 169.86, subdivision 5, there is established in the state treasury a
separate and special revenue account for deposit of the nondedicated transportation permit
fees.
new text end

new text begin (b) "Nondedicated transportation permit fees" means fees collected from the permits
issued by the commissioner of transportation under section 169.86, subdivision 5, but does
not include the fee described in section 169.86, subdivision 5, paragraph (i).
new text end

new text begin Subd. 3. new text end

new text begin Fees credited to special revenue account. new text end

new text begin (a) During any period in which a
loan is entered into and remains outstanding under subdivision 1 and Laws 2010, chapter
351, section 69, all nondedicated transportation permit fees must be credited to the special
revenue account established in subdivision 2.
new text end

new text begin (b) Money credited to the special revenue account must be transferred to the loan fund
established in subdivision 4, at the times and in the amounts determined by the commissioners
of transportation and management and budget to be necessary to provide for the payment
and security of a loan entered into pursuant to Laws 2010, chapter 351, section 69, costs of
issuance, any reserve, refinancing costs, and necessary administrative expenses associated
with the loan.
new text end

new text begin (c) Any money in the special revenue account not required to be transferred to the loan
fund must be annually transferred to the trunk highway fund. If a loan is not entered into
and outstanding under subdivision 1, all nondedicated transportation permit fees must be
credited to the trunk highway fund.
new text end

new text begin Subd. 4. new text end

new text begin Loan fund established. new text end

new text begin There is established in the state treasury a separate
and special loan fund. Money transferred or appropriated to the fund and investment income
thereon on hand or required to be transferred to the fund shall be used and is irrevocably
appropriated for the payment of the principal and interest on a loan authorized under
subdivision 1 and Laws 2010, chapter 351, section 69, when due, costs of issuance, any
reserve, refinancing costs, and necessary administrative expenses associated with the loan.
new text end

new text begin Subd. 5. new text end

new text begin Covenants and agreements. new text end

new text begin (a) The commissioners of transportation and
management and budget may, for and on behalf of the state, enter into such covenants and
agreements not inconsistent with this section as may be necessary or desirable to facilitate
the execution and delivery of a loan agreement authorized under subdivision 1 and Laws
2010, chapter 351, section 69, on terms favorable to the state, including but not limited to
covenants and agreements relating to the payment of and security for the loan agreement
and disclosure of information required by the federal government and federal and state
securities laws.
new text end

new text begin (b) Such covenants and agreements of the commissioners of transportation and
management and budget constitute an enforceable contract of the state, and the state shall
pledge and agree with the holders of any loan agreement that the state will not limit or alter
the rights vested in the commissioners of transportation and management and budget to
fulfill the terms of any such covenants or agreements made with the holders of the loan
agreement or in any way impair the rights and remedies of the holders until the loan
agreement, together with the interest thereon, with interest on any unpaid installments of
interest, and all costs and expenses in connection with any action or proceeding by or on
behalf of such holders, are fully met and discharged.
new text end

new text begin (c) The commissioners of transportation and management and budget are authorized to
include this pledge and agreement of the state in any covenant or agreement with the holders
of such loan agreement.
new text end

new text begin (d) Such covenants may also include covenants to seek increased nondedicated
transportation permit fees so long as any loan agreement issued pursuant to this section is
outstanding.
new text end

new text begin (e) Sections 16A.672 and 16A.675 apply to any bonds or certificates of indebtedness
issued to carry out the provisions of this section.
new text end

new text begin Subd. 6. new text end

new text begin Applicability. new text end

new text begin Subdivisions 2 and 3 do not apply to any permit described in
section 169.86, subdivision 5, that is determined by the attorney general or a court of
competent jurisdiction to be a tax.
new text end

new text begin Subd. 7. new text end

new text begin Waiver of immunity. new text end

new text begin The waiver of immunity by the state provided for by
section 3.751, subdivision 1, applies to the loan, any certificates of indebtedness, and any
ancillary contracts to which the commissioners of transportation and management and
budget are parties under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Laws 2010, chapter 351, section 69, is amended to read:

Sec. 69. TIFIA PILOT PROGRAM.

(a) The commissioner of transportation may conduct a pilot program to apply for and
receive financial assistance under the Transportation Infrastructure Finance and Innovation
Act of 1998 (TIFIA), United States Code, title 23, chapter 6, or through other federal
transportation loan, grant, or credit assistance programs. The assistance may include but is
not limited to loans, loan guarantees, and lines of credit. The commissioner may enter into
agreements to repay the financial assistance subject to the availability of state money or
other dedicated revenue or resources, with the approval of new text begin the commissioner of new text end Minnesota
Management and Budget.

(b) The pilot program under this section is available for one transportation project
identified by the commissioner.

(c) Upon completion of the transportation project under the pilot program, the
commissioner shall submit a report on the pilot program to the chairs and ranking minority
members of the house of representatives and senate committees having jurisdiction over
transportation policy and finance. At a minimum, the report must: describe the transportation
project undertaken and each financing mechanism utilized; analyze the effectiveness of
each financing mechanism; evaluate the costs, risks, and benefits of additional participation
in federal financial assistance programs; and provide any recommendations for related
legislative changes. The report may be submitted electronically, and is subject to Minnesota
Statutes, section 3.195, subdivision 1.

new text begin (d) An amount sufficient to repay the financial assistance as specified in paragraph (a)
is annually appropriated from the loan fund created in Minnesota Statutes, section 169.882.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end