1997 Minnesota Statutes

CHAPTER 457A. Port development assistance

     457A.01 Definitions. 

    Subdivision 1.    Scope.  For purposes of sections 
 457A.01 to 457A.06, the following terms have the meanings given 
 them. 

    Subd. 2.    Commercial navigation facility.  "Commercial 
 navigation facility" means (1) terminals and docks used for the 
 transfer of property or passengers between commercial vessels 
 and land, and supporting equipment, structures, and 
 transportation facilities, (2) disposal facilities for dredging 
 material produced by port development projects, and (3) 
 buildings and related structures and facilities used by 
 commercial vessels under construction or repair.  "Commercial 
 navigation facility" does not include any commercial navigation 
 facility that is (1) not on the commercial navigation system, or 
 (2) the responsibility of the United States corps of army 
 engineers or the United States coast guard. 

    Subd. 3.    Commercial vessel.  "Commercial vessel" 
 means a vessel used for the transportation of passengers or 
 property.  "Commercial vessel" does not include a vessel used 
 primarily for recreational or sporting purposes. 

    Subd. 4.    Commissioner.  "Commissioner" means the 
 commissioner of transportation. 

    Subd. 5.    Dredging.  "Dredging" means excavating 
 harbor sediment or bottom materials, including mobilizing or 
 operating equipment for excavating and transporting dredged 
 material and placing dredged material in a disposal facility. 

    Subd. 6.    Navigation system.  "Navigation system" 
 means (1) the commercially navigable waters of the Mississippi 
 River, the Minnesota, and the St. Croix rivers, (2) the 
 commercial harbors on Minnesota's Lake Superior shoreline, and 
 (3) the commercial navigation facilities on those waterways. 

    Subd. 7. Repealed, 1995 c 265 art 2 s 33 

    HIST: 1991 c 298 art 3 s 1; 1992 c 464 art 1 s 44 

     457A.02 Program established. 

    Subdivision 1.    Purpose of program.  A port 
 development assistance program is established for the purpose of:

    (1) expediting the movement of commodities and passengers 
 on the commercial navigation system; 

    (2) enhancing the commercial vessel construction and repair 
 industry in Minnesota; and 

    (3) promoting economic development in and around ports and 
 harbors in the state. 

    Subd. 2.    Commissioner to administer.  The 
 commissioner shall administer the port development assistance 
 program to advance the purposes of subdivision 1.  In 
 administering the program, the commissioner may: 

    (1) make grants and loans to applicants eligible under 
 section 457A.03, subdivision 1, to apply for them; 

    (2) make assistance agreements with recipients of grants 
 and loans; and 

    (3) adopt rules authorized by section 457A.05. 

    HIST: 1991 c 298 art 3 s 2; 1995 c 265 art 2 s 30 

     457A.03 Port assistance. 

    Subdivision 1.    Eligible applicants.  Any person, 
 political subdivision, or port authority, that owns a commercial 
 navigation facility, may apply to the commissioner for 
 assistance under this chapter. 

    Subd. 2.    Types of assistance.  The commissioner may 
 make loans to an eligible applicant if the commissioner 
 determines that the project submitted by the applicant for 
 assistance will serve either or both of the purposes stated in 
 section 457A.02, subdivision 1, clauses (1) and (2).  The 
 commissioner may make grants, or a combination of grants and 
 loans, to an eligible applicant if the commissioner determines 
 that the project submitted by the applicant for assistance will 
 serve either or both of the purposes stated in section 457A.02, 
 subdivision 1, clauses (1) and (2), and will also enhance 
 economic development in and around the commercial navigation 
 facility being assisted. 

    Subd. 3.    State participation; limitations.  The 
 commissioner may not provide any assistance under this chapter 
 for more than 80 percent of the nonfederal share of any 
 project.  Assistance provided under this chapter may not be used 
 to match any other state funds.  The commissioner shall not 
 assume continuing funding responsibility for any commercial 
 navigation facility project. 

    HIST: 1991 c 298 art 3 s 3; 1995 c 265 art 2 s 31 

     457A.04 Assistance agreements. 

    Subdivision 1.    Agreements required.  The commissioner 
 may not provide any assistance to a project under this chapter 
 unless the commissioner has signed an assistance agreement with 
 the recipient of the assistance. 

    Subd. 2.    Costs.  An assistance agreement must specify 
 those project costs which may be paid in whole or in part with 
 assistance from the commissioner.  Assistance agreements may 
 provide that only the following costs may be so paid: 

    (1) final engineering costs on a commercial navigation 
 facility project; 

    (2) capital improvements to a commercial navigation 
 facility; and 

    (3) costs of dredging necessary to open a new commercial 
 navigation facility project, to provide access to on-shore 
 facilities from existing channels, to provide for fleeting 
 operations, and for disposal of dredged material. 

    The following costs may not be paid with assistance from 
 the commissioner: 

    (1) the applicant's administrative, insurance, and legal 
 costs; 

    (2) costs of acquiring project permits; 

    (3) costs of preparing environmental documents, feasibility 
 studies, or project designs; 

    (4) interest on money borrowed by the applicant or charged 
 to the applicant for late payment of project costs; 

    (5) any costs related to the routine maintenance, repair, 
 or operation of a commercial navigation facility; and 

    (6) costs of dredging to maintain an existing channel. 

    Subd. 3.    Insurance; liability.  An assistance 
 agreement must require the applicant to: 

    (1) provide a comprehensive general liability insurance 
 policy, complying with minimum amount prescribed by the 
 commissioner by rule, naming the commissioner and officers, 
 employees, and agents of the department of transportation as 
 additional insureds; and 

    (2) save and hold the commissioner harmless from and 
 against all liability, damage, loss, claims, demands, and 
 actions related to the project being assisted. 

    Subd. 4.    Performance and payment bonds.  An 
 assistance agreement must require an assistance recipient to 
 provide evidence of performance and payment bonds, satisfying 
 all applicable legal requirements for the full amount of any and 
 all construction contracts let by the applicant in connection 
 with the project. 

    Subd. 5.    Repayment.  An assistance agreement must 
 require the recipient to repay all or part of any assistance 
 received, in an amount determined by the commissioner, if the 
 project for which the assistance is provided: 

    (1) is not completed according to the terms of the 
 assistance agreement, or 

    (2) is converted, during the period of time specified in 
 the assistance agreement, to a use that is (1) inconsistent with 
 the purposes of this chapter, or (2) inconsistent with the terms 
 of the assistance agreement, or (3) not approved in writing by 
 the commissioner. 

    HIST: 1991 c 298 art 3 s 4; 1997 c 159 art 2 s 48 

     457A.05 Rules. 

    The commissioner may adopt rules that provide for: 

    (1) application procedures for assistance under this 
 chapter; 

    (2) procedures for establishing deadlines for applications, 
 and for notifying potential recipients of those deadlines; 

    (3) eligibility criteria for projects to be assisted; 

    (4) information required to be submitted with applications; 

    (5) contents of assistance agreements; 

    (6) any other requirement of this chapter; and 

    (7) any other requirement the commissioner deems necessary 
 for the administration of this chapter. 

    HIST: 1991 c 298 art 3 s 5 

     457A.06 Revolving fund. 

    A port development revolving fund is established in the 
 state treasury.  The fund consists of all money appropriated to 
 the commissioner for the purposes of this chapter and all money 
 received by the commissioner from repayment of loans made under 
 this chapter. 

    HIST: 1991 c 298 art 3 s 6