Minnesota Legislature
HF 3980
1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/28/2018 02:00pm
Bill Text Versions
| Engrossments | ||
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| Introduction | Posted on 03/19/2018 | |
| 1st Engrossment | Posted on 03/28/2018 |
Current Version - 1st Engrossment
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A bill for an act
relating to transportation; establishing a freight rail economic development program;
modifying rail-related accounts; making technical changes; amending Minnesota
Statutes 2016, sections 222.50, subdivision 7; 222.57; 222.63, subdivision 8;
Minnesota Statutes 2017 Supplement, section 222.49; proposing coding for new
law in Minnesota Statutes, chapter 222.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2017 Supplement, section 222.49, is amended to read:
222.49 RAIL SERVICE IMPROVEMENT ACCOUNT; deleted text begin APPROPRIATIONdeleted text end
new text begin TRANSFERSnew text end .
new text begin (a) new text end The rail service improvement account is created in the special revenue fund in the
state treasury. The account consists of funds as provided by law, and any other money
donated, allotted, transferred, or otherwise provided to the account, excluding bond proceeds
as authorized by article XI, section 5, clause (i), of the Minnesota Constitution. deleted text begin All money
so deposited is appropriated to the department for expenditure for rail service improvement
in accordance with applicable state and federal law. This appropriation shall not lapse but
shall be available until the purpose for which it was appropriated has been accomplished.
deleted text end
new text begin
(b) Annually by June 30, the commissioner of transportation must transfer the entire
unencumbered balance in the rail service improvement account to the freight rail account
in the special revenue fund.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective June 30, 2018.
new text end
Sec. 2.
Minnesota Statutes 2016, section 222.50, subdivision 7, is amended to read:
Subd. 7.
Expenditures.
deleted text begin (a)deleted text end The commissioner may expend money from the rail service
improvement account for the following purposes:
(1) to make transfers as provided under section 222.57 or to pay interest adjustments on
loans guaranteed under the state rail user and rail carrier loan guarantee program;
(2) to pay a portion of the costs of capital improvement projects designed to improve
rail service of a rail user or a rail carrier;
(3) to pay a portion of the costs of rehabilitation projects designed to improve rail service
of a rail user or a rail carrier;
(4) to acquire, maintain, manage, and dispose of railroad right-of-way pursuant to the
state rail bank program;
(5) to provide for aerial photography survey of proposed and abandoned railroad tracks
for the purpose of recording and reestablishing by analytical triangulation the existing
alignment of the inplace track;
(6) to pay a portion of the costs of acquiring a rail line by a regional railroad authority
established pursuant to chapter 398A;
(7) to pay the state matching portion of federal grants for rail-highway grade crossing
improvement projects;
deleted text begin
(8) for expenditures made before July 1, 2017, to pay the state matching portion of grants
under the federal Transportation Investment Generating Economic Recovery (TIGER)
program of the United States Department of Transportation;
deleted text end
deleted text begin (9)deleted text end new text begin (8)new text end to fund rail planning studies; and
deleted text begin (10)deleted text end new text begin (9)new text end to pay a portion of the costs of capital improvement projects designed to improve
capacity or safety at rail yards.
deleted text begin
(b) All money derived by the commissioner from the disposition of railroad right-of-way
or of any other property acquired pursuant to sections 222.46 to 222.62 shall be deposited
in the rail service improvement account.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective June 30, 2018.
new text end
Sec. 3.
new text begin
[222.505] FREIGHT RAIL ECONOMIC DEVELOPMENT PROGRAM.
new text end
new text begin Subdivision 1. new text end
new text begin Definition. new text end
new text begin
For purposes of this section, "program" means the freight
rail economic development program established in this section.
new text end
new text begin Subd. 2. new text end
new text begin Program established. new text end
new text begin
The commissioners of transportation and employment
and economic development must jointly establish a freight rail economic development
program as provided in this section.
new text end
new text begin Subd. 3. new text end
new text begin Freight rail account; appropriation. new text end
new text begin
(a) A freight rail account is established
in the special revenue fund. The account consists of funds as provided in paragraph (b) and
in sections 222.49 and 222.63, subdivision 8, and any other money donated, allotted,
transferred, or otherwise provided to the account. The account must not include any bond
proceeds authorized by the Minnesota Constitution, article XI, section 5, clause (i).
new text end
new text begin
(b) All funds made available to the commissioner from the disposition of railroad
right-of-way or of any other property acquired pursuant to sections 222.46 to 222.62 must
be deposited in the freight rail account.
new text end
new text begin
(c) Funds in the account are annually appropriated to the commissioner of transportation
for financial assistance awards under this section. The commissioners of transportation and
employment and economic development are prohibited from expending funds from the
account for administrative costs.
new text end
new text begin Subd. 4. new text end
new text begin Program administration. new text end
new text begin
(a) The commissioners of transportation and
employment and economic development must establish a project selection process for
financial assistance under the program. The process must include public notice of available
funds, procedures to submit applications, publicly available information on project evaluation
and selection as provided in this section, and financial assistance awards.
new text end
new text begin
(b) The commissioners must maintain on an ongoing basis a project requests list that
identifies all eligible projects that have been evaluated for financial assistance under the
program.
new text end
new text begin
(c) An applicant must apply for financial assistance in the manner and at the times
determined by the commissioners.
new text end
new text begin
(d) The commissioners must make reasonable efforts to (1) publicize each solicitation
for applications among all eligible recipients, and (2) provide technical and informational
assistance related to applications.
new text end
new text begin Subd. 5. new text end
new text begin Award recipient eligibility. new text end
new text begin
(a) Eligible recipients of financial assistance under
the program are:
new text end
new text begin
(1) railroad companies that are classified by federal law or regulation as Class II railroads,
Class II rail carriers, Class III railroads, or Class III rail carriers;
new text end
new text begin
(2) rail users; and
new text end
new text begin
(3) political subdivisions.
new text end
new text begin
(b) An eligible recipient may receive funds regardless of rail facility ownership.
new text end
new text begin Subd. 6. new text end
new text begin Project eligibility. new text end
new text begin
(a) To be eligible under the program, a project must:
new text end
new text begin
(1) improve safety, efficiency, service, or capacity of railroad freight movement;
new text end
new text begin
(2) provide for rail line capital maintenance, preservation, rehabilitation, or improvements;
and
new text end
new text begin
(3) be consistent with transportation plans adopted by the commissioner, including the
statewide freight and passenger rail plan under section 174.03, subdivision 1b.
new text end
new text begin
(b) The commissioner may provide financial assistance under the program for:
new text end
new text begin
(1) capital improvement projects designed to improve a rail user or a rail carrier's rail
service which includes but is not limited to rail track, track structures, and rail facilities and
buildings;
new text end
new text begin
(2) rehabilitation projects designed to improve a rail user or a rail carrier's rail service;
new text end
new text begin
(3) development of industrial parks primarily or substantially served by rail service,
which:
new text end
new text begin
(i) includes capital improvements to or rehabilitation of main industrial lead track; and
new text end
new text begin
(ii) excludes siding track designed to serve areas of an industrial park for which occupants
are unidentified or uncommitted; and
new text end
new text begin
(4) highway-rail grade crossing improvement or grade separation projects, including
but not limited to the local matching portion for federal grants.
new text end
new text begin Subd. 7. new text end
new text begin Evaluation and prioritization. new text end
new text begin
The commissioners of transportation and
employment and economic development must establish project evaluation criteria to
determine financial assistance awards. At a minimum, the criteria must objectively prioritize
projects that:
new text end
new text begin
(1) provide economic and employment impacts, including but not limited to
responsiveness to emergent market conditions;
new text end
new text begin
(2) address rail lines that have deteriorated or are in danger of deteriorating to such a
degree that the rail line is unable to carry the speeds and weights necessary to efficiently
transport goods and products; and
new text end
new text begin
(3) include a commitment of funding or in-kind assistance for the project from nonpublic
sources that exceeds 25 percent of the total project cost estimate.
new text end
new text begin Subd. 8. new text end
new text begin Financial assistance; limitations. new text end
new text begin
(a) When calculated in conjunction with
any other state sources of funds, an award of financial assistance under the program must
not provide combined state funding that exceeds 85 percent of the total project cost estimate.
new text end
new text begin
(b) The commissioners of transportation and employment and economic development
must ensure that financial assistance is provided in a manner that is balanced throughout
the state, including with respect to (1) the number of projects receiving funding in a particular
geographic location or region of the state, and (2) the total amount of financial assistance
provided for projects in a particular geographic location or region of the state.
new text end
new text begin Subd. 9. new text end
new text begin Design, engineering, and construction standards. new text end
new text begin
(a) The commissioner is
prohibited from establishing specifications or engineering standards that are more restrictive
than federal track safety standards under Code of Federal Regulations, title 49, part 213, or
successor requirements, for track and track structures awarded financial assistance under
the program.
new text end
new text begin
(b) The relevant requirements under sections 16B.30 to 16B.355 do not apply to rail
facilities and buildings awarded financial assistance under the program.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective June 30, 2018.
new text end
Sec. 4.
Minnesota Statutes 2016, section 222.57, is amended to read:
222.57 RAIL USER AND RAIL CARRIER LOAN GUARANTEE ACCOUNT.
There is created a rail user and rail carrier loan guarantee account as a separate account
in the rail service improvement account, which shall be used by the commissioner for
carrying out the provisions of sections 222.55 to 222.62 with respect to loans insured under
section 222.58. The commissioner may transfer to the rail user and rail carrier loan guarantee
account from money otherwise available in thenew text begin freightnew text end rail deleted text begin service improvementdeleted text end account
whatever amount is necessary to implement the rail user and rail carrier loan guarantee
program, except that bond proceeds may not be transferred to the account for insurance of
loans made for the purposes specified in section 222.58, subdivision 2, paragraph (b), clauses
(3) to (5). The commissioner may withdraw any amount from the rail user and rail carrier
loan guarantee account that is not required to insure outstanding loans as provided in section
222.60, subdivision 1.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective June 30, 2018.
new text end
Sec. 5.
Minnesota Statutes 2016, section 222.63, subdivision 8, is amended to read:
Subd. 8.
Rail bank accountsnew text begin ; appropriationnew text end .
new text begin (a) new text end A deleted text begin special account shall be maintained
in the state treasury, designated as thedeleted text end rail bank maintenance accountdeleted text begin ,deleted text end new text begin is established in the
special revenue fundnew text end to record the receipts and expenditures of the commissioner of
transportation for the maintenance of rail bank property. Funds received by the commissioner
of transportation from interest earnings, administrative payments, rentals, fees, or charges
for the use of rail bank property, or received from rail line rehabilitation contracts deleted text begin shall bedeleted text end new text begin
arenew text end credited to thenew text begin rail banknew text end maintenance account and used for the maintenance of that
property and held as a reserve for maintenance expenses in an amount determined by the
commissionerdeleted text begin , anddeleted text end new text begin .new text end Amounts received in thenew text begin rail banknew text end maintenance account in excess of
the reserve requirements deleted text begin shalldeleted text end new text begin mustnew text end be transferred to thenew text begin freightnew text end rail deleted text begin service improvementdeleted text end
accountnew text begin under section 222.505, subdivision 3new text end .
new text begin (b) new text end All proceeds of the sale of abandoned rail lines deleted text begin shalldeleted text end new text begin mustnew text end be deposited in thenew text begin freightnew text end
rail deleted text begin service improvementdeleted text end account.
new text begin (c)new text end All money deleted text begin to bedeleted text end deposited in deleted text begin thisdeleted text end new text begin thenew text end rail deleted text begin service improvementdeleted text end new text begin bank maintenancenew text end
account as provided in this subdivision is appropriated to the commissioner of transportation
for the purposes of this section. The appropriations deleted text begin shalldeleted text end new text begin donew text end not lapse deleted text begin but shall bedeleted text end new text begin and arenew text end
available until the purposes for which the funds are appropriated are accomplished.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective June 30, 2018.
new text end