1.1                          A bill for an act 
  1.2             relating to transportation; modifying state contract 
  1.3             requirements; allowing department of transportation to 
  1.4             contract for land surveying; clarifying requirements 
  1.5             for notaries and filing corrections to maps and plats 
  1.6             relating to highways; providing for transfer of 
  1.7             certain revolving loan accounts to transportation 
  1.8             revolving loan fund; correcting trunk highway route 
  1.9             description; modifying filing requirements for highway 
  1.10            route location orders; increasing dollar amount for 
  1.11            contracts negotiated by commissioner of transportation 
  1.12            for highway construction or maintenance work; 
  1.13            modifying provisions for estimates and agency costs 
  1.14            relating to county state-aid highway and municipal 
  1.15            state-aid street funds; modifying provision requiring 
  1.16            certification for disbursement from state 
  1.17            transportation fund; authorizing commissioner to 
  1.18            convey excess rail bank corridor land to state agency 
  1.19            or political subdivision; modifying provisions 
  1.20            governing state grants for local airports; modifying 
  1.21            deadlines for metropolitan transit performance 
  1.22            evaluation reports by metropolitan council; making 
  1.23            technical corrections; appropriating money; amending 
  1.24            Minnesota Statutes 1998, sections 16C.05, subdivision 
  1.25            2; 16C.09; 160.085, subdivisions 1 and 1a; 161.04, 
  1.26            subdivision 3, and by adding a subdivision; 161.115, 
  1.27            subdivision 164; 161.16, subdivision 2; 161.32, 
  1.28            subdivision 2; 162.06, subdivisions 1, 2, and 6; 
  1.29            162.12, subdivisions 1, 2, and 5; 174.02, by adding a 
  1.30            subdivision; 174.50, subdivision 5; 222.63, 
  1.31            subdivision 4; 360.0151, subdivision 2; 360.032, 
  1.32            subdivision 1a; 360.305, subdivision 4; 446A.085, 
  1.33            subdivisions 3 and 6; and 473.1466. 
  1.34  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.35     Section 1.  Minnesota Statutes 1998, section 16C.05, 
  1.36  subdivision 2, is amended to read: 
  1.37     Subd. 2.  [CREATION AND VALIDITY OF CONTRACTS.] (a) A 
  1.38  contract is not valid and the state is not bound by it unless: 
  1.39     (1) it has first been executed by the head of the agency or 
  2.1   a delegate who is a party to the contract; 
  2.2      (2) it has been approved by the commissioner; 
  2.3      (3) it has been approved by the attorney general or a 
  2.4   delegate as to form and execution; 
  2.5      (4) the accounting system shows an obligation in an expense 
  2.6   budget or encumbrance for the amount of the contract liability; 
  2.7   and 
  2.8      (5) the combined contract and amendments shall will not 
  2.9   exceed five years, unless (i) otherwise provided for allowed by 
  2.10  law. The term of the original contract must not exceed two years 
  2.11  unless, or (ii) for contracts other than for professional or 
  2.12  technical services, the commissioner determines that a longer 
  2.13  duration is in the best interest of the state.  The term of the 
  2.14  original contract must not exceed two years unless the 
  2.15  commissioner determines that a longer duration is in the best 
  2.16  interest of the state. 
  2.17     (b) Grants, interagency agreements, purchase orders, and 
  2.18  annual plans need not, in the discretion of the commissioner and 
  2.19  attorney general, require the signature of the commissioner 
  2.20  and/or the attorney general. 
  2.21     (c) A fully executed copy of every contract must be kept on 
  2.22  file at the contracting agency. 
  2.23     Sec. 2.  Minnesota Statutes 1998, section 16C.09, is 
  2.24  amended to read: 
  2.25     16C.09 [PROCEDURE FOR SERVICE CONTRACTS.] 
  2.26     (a) Before entering into or approving a service contract, 
  2.27  the commissioner must determine, at least, that: 
  2.28     (1) no current state employee is able and available to 
  2.29  perform the services called for by the contract; 
  2.30     (2) the work to be performed under the contract is 
  2.31  necessary to the agency's achievement of its statutory 
  2.32  responsibilities and there is statutory authority to enter into 
  2.33  the contract; 
  2.34     (3) the contract will not establish an employment 
  2.35  relationship between the state or the agency and any persons 
  2.36  performing under the contract; 
  3.1      (4) the contractor and agents are not employees of the 
  3.2   state; 
  3.3      (5) the contracting agency has specified a satisfactory 
  3.4   method of evaluating and using the results of the work to be 
  3.5   performed; and 
  3.6      (6) the combined contract and amendments will not exceed 
  3.7   five years, unless (i) otherwise provided for allowed by law.  
  3.8   The term of the original contract must not exceed two years, 
  3.9   unless, or (ii) for contracts other than for professional or 
  3.10  technical services, the commissioner determines that a longer 
  3.11  duration is in the best interest of the state.  The term of the 
  3.12  original contract must not exceed two years unless the 
  3.13  commissioner determines that a longer duration is in the best 
  3.14  interest of the state.  
  3.15     (b) For purposes of paragraph (a), clause (1), employees 
  3.16  are available if qualified and: 
  3.17     (i) (1) are already doing the work in question; or 
  3.18     (ii) (2) are on layoff status in classes that can do the 
  3.19  work in question. 
  3.20  An employee is not available if the employee is doing other 
  3.21  work, is retired, or has decided not to do the work in question. 
  3.22     Sec. 3.  Minnesota Statutes 1998, section 160.085, 
  3.23  subdivision 1, is amended to read: 
  3.24     Subdivision 1.  [RECORDING MAP OR PLAT; CERTIFICATION.] (a) 
  3.25  In order to facilitate the acquisition of right-of-way required 
  3.26  for highways, state and county road authorities may file for 
  3.27  record in the office of the county recorder or registrar of 
  3.28  titles in the county in which right-of-way is to be acquired, 
  3.29  such orders or resolutions, as required by law, in the form of 
  3.30  maps or plats showing right-of-way by course distance, bearing 
  3.31  and arc length, and other rights or interests in land to be 
  3.32  acquired as the road authority determines necessary.  Said map 
  3.33  or plat shall show by outline all tracts or parcels of land 
  3.34  affected by the proposed acquisition.  
  3.35     (b) The map or plat, as to trunk highways, shall be 
  3.36  certified by the commissioner of transportation or the 
  4.1   commissioner's designated assistant and any by a licensed land 
  4.2   surveyor in the employ of the state as to trunk highways.  
  4.3      (c) The map or plat shall be certified as to county 
  4.4   state-aid highways and county highways by the chair of the 
  4.5   county board or the county engineer or the engineer's designated 
  4.6   assistant, and by a licensed land surveyor in the employ of the 
  4.7   county.  
  4.8      (d) The map or plat so certified is entitled to record 
  4.9   without compliance with the provisions of chapter 505.  Neither 
  4.10  a witness nor an acknowledgment is required for a map or plat 
  4.11  certified under this subdivision.  Any amendments, 
  4.12  alterations, corrections, rescissions or vacations of such 
  4.13  orders, resolutions, maps or plats so filed shall be entitled to 
  4.14  record in like manner.  The recorder or registrar may make 
  4.15  suitable notations on the appropriate map or plat affected by an 
  4.16  amendment, alteration, correction, rescission or vacation to 
  4.17  direct the attention of anyone examining the record to the 
  4.18  proper map or plat.  
  4.19     Sec. 4.  Minnesota Statutes 1998, section 160.085, 
  4.20  subdivision 1a, is amended to read: 
  4.21     Subd. 1a.  [AMENDING RECORDED MAP OR PLAT.] If an error on 
  4.22  a map or plat incorrectly defines the intended acquisition, but 
  4.23  does not affect any rights of interest to be acquired, a 
  4.24  certificate may be prepared stating what the defect is, what the 
  4.25  correct information is, and which map or plat the certificate 
  4.26  affects.  The certificate shall be signed by a licensed land 
  4.27  surveyor in the employ of the state or county.  The certificate 
  4.28  shall be filed for record in the office of the county recorder 
  4.29  or registrar of titles in the county where the map or plat is 
  4.30  filed.  When so filed the certificate shall amend the map or 
  4.31  plat.  The recorder or registrar may make suitable notations on 
  4.32  the map or plat to which the certificate refers to direct the 
  4.33  attention of anyone examining the map or plat to the record of 
  4.34  the certificate. 
  4.35     Sec. 5.  Minnesota Statutes 1998, section 161.04, 
  4.36  subdivision 3, is amended to read: 
  5.1      Subd. 3.  [TRUNK HIGHWAY REVOLVING LOAN ACCOUNT.] A trunk 
  5.2   highway revolving loan account is created in the trunk highway 
  5.3   fund transportation revolving loan fund under section 446A.085.  
  5.4   The commissioner may transfer money from the trunk highway fund 
  5.5   to the trunk highway revolving loan account.  Money in the 
  5.6   account may be used to make loans.  Funds in the trunk highway 
  5.7   revolving loan account may not be used for any toll facilities 
  5.8   project or congestion-pricing project and may be used only for 
  5.9   trunk highway purposes and repayments and interest from loans of 
  5.10  those funds must be credited to the trunk highway revolving loan 
  5.11  account in the trunk highway transportation revolving loan 
  5.12  fund.  Money in the trunk highway revolving loan account is 
  5.13  annually appropriated to the commissioner and does not lapse.  
  5.14  Interest earned from investment of money in this account must be 
  5.15  deposited in the trunk highway revolving loan account. 
  5.16     Sec. 6.  Minnesota Statutes 1998, section 161.04, is 
  5.17  amended by adding a subdivision to read: 
  5.18     Subd. 4.  [LOANS FOR TRUNK HIGHWAY PROJECTS.] Loans from 
  5.19  the transportation revolving loan fund to the commissioner for 
  5.20  trunk highway projects must be deposited in the trunk highway 
  5.21  fund.  Loan proceeds are appropriated annually to the 
  5.22  commissioner and do not lapse.  Principal and interest payments 
  5.23  on the loan proceeds must be paid from the debt service account 
  5.24  and are considered a long-term obligation of the trunk highway 
  5.25  fund. 
  5.26     Sec. 7.  Minnesota Statutes 1998, section 161.115, 
  5.27  subdivision 164, is amended to read: 
  5.28     Subd. 164.  [ROUTE NO. 233.] Beginning at a point in 
  5.29  Section 35, Township 135 North, Range 26 28 West; thence 
  5.30  extending in a general southerly direction to a point on Route 
  5.31  No. 18 at or near Brainerd. 
  5.32     Sec. 8.  Minnesota Statutes 1998, section 161.16, 
  5.33  subdivision 2, is amended to read: 
  5.34     Subd. 2.  [DESIGNATION AND LOCATION BY ORDER.] The 
  5.35  commissioner shall by order or orders designate such temporary 
  5.36  trunk highways, and on determining the definite location of any 
  6.1   trunk highway or portion thereof, the same shall also be 
  6.2   designated by order or orders.  The definite location of such 
  6.3   highway or portion thereof may be in the form of a map or plat 
  6.4   showing the lands and interests in lands required for trunk 
  6.5   highway purposes.  Formal determination or order if by map or 
  6.6   plat, shall be certified by the commissioner of transportation 
  6.7   on said map or plat.  The commissioner may, by similar order or 
  6.8   orders, change the definite location of any trunk highway 
  6.9   between the fixed termini, as fixed by law, when such changes 
  6.10  are necessary in the interest of safety and convenient public 
  6.11  travel.  The commissioner shall file certified copies of such 
  6.12  orders with the county auditor of the county wherein such 
  6.13  highways are located.  Such certified copies shall become 
  6.14  maintain a file of these orders as permanent records and shall 
  6.15  not be removed from the office or offices wherein filed. 
  6.16     Sec. 9.  Minnesota Statutes 1998, section 161.32, 
  6.17  subdivision 2, is amended to read: 
  6.18     Subd. 2.  [DIRECT NEGOTIATION.] In cases where the 
  6.19  estimated cost of construction work or maintenance work does not 
  6.20  exceed $75,000 $150,000, the commissioner may enter into a 
  6.21  contract for the work by direct negotiation, by obtaining two or 
  6.22  more quotations for the work, and without advertising for bids 
  6.23  or otherwise complying with the requirements of competitive 
  6.24  bidding if the total contractual obligation of the state for the 
  6.25  directly negotiated contract or contracts on any single project 
  6.26  does not exceed $75,000 $150,000.  All quotations obtained shall 
  6.27  be kept on file for a period of at least one year after receipt 
  6.28  of the quotation. 
  6.29     Sec. 10.  Minnesota Statutes 1998, section 162.06, 
  6.30  subdivision 1, is amended to read: 
  6.31     Subdivision 1.  [ESTIMATE.] On or before the second Tuesday 
  6.32  of January By December 15 of each year the commissioner shall 
  6.33  estimate the probable sum amount of money that will accrue be 
  6.34  available to the county state-aid highway fund during the first 
  6.35  six months of each that fiscal year ending June 30.  To such 
  6.36  estimated amounts the commissioner shall add the sum of money 
  7.1   already accrued in the county state-aid highway fund for the 
  7.2   last preceding six-month period ending December 31 of each year, 
  7.3   adjusted to reflect the amount by which The amount available 
  7.4   must be based on actual receipts for the preceding January 1 to 
  7.5   June 30 were different from estimated receipts from July 1 
  7.6   through November 30, the unallocated fund balance, and the 
  7.7   projected receipts for the remainder of the fiscal year.  The 
  7.8   total of such sums available, except for deductions to be first 
  7.9   made as provided herein, shall be apportioned by the 
  7.10  commissioner to the several counties as hereinafter provided. 
  7.11     Sec. 11.  Minnesota Statutes 1998, section 162.06, 
  7.12  subdivision 2, is amended to read: 
  7.13     Subd. 2.  [ADMINISTRATIVE COSTS OF DEPARTMENT.] From the 
  7.14  total of such sums the commissioner shall deduct A sum equal 
  7.15  to of 1-1/2 percent of the total sum.  The sum so deducted shall 
  7.16  be set aside in a separate account and shall be deducted from 
  7.17  the total amount available in the county state-aid highway fund, 
  7.18  set aside in a separate account, and used for administrative 
  7.19  costs incurred by the state transportation department in 
  7.20  carrying out the provisions relating to the county state-aid 
  7.21  highway system.  On the 31st day of December of each year any 
  7.22  money remaining in the account not needed for administrative 
  7.23  costs shall be transferred to the county state-aid highway fund. 
  7.24     Sec. 12.  Minnesota Statutes 1998, section 162.06, 
  7.25  subdivision 6, is amended to read: 
  7.26     Subd. 6.  [COUNTY STATE-AID HIGHWAY REVOLVING LOAN 
  7.27  ACCOUNT.] A county state-aid highway revolving loan account is 
  7.28  created in the county state-aid highway transportation revolving 
  7.29  loan fund.  The commissioner may transfer to the account the 
  7.30  amount allocated under section 162.065.  Money in the account 
  7.31  may be used to make loans.  Funds in the county state-aid 
  7.32  highway revolving loan account may be used only for aid in the 
  7.33  construction, improvement, and maintenance of county state-aid 
  7.34  highways.  Funds in the account may not be used for any toll 
  7.35  facilities project or congestion-pricing project.  Repayments 
  7.36  and interest from loans from the county state-aid highway 
  8.1   revolving loan account must be credited to that account.  Money 
  8.2   in the account is annually appropriated to the commissioner and 
  8.3   does not lapse.  Interest earned from investment of money in 
  8.4   this account must be deposited in the county state-aid highway 
  8.5   revolving loan account. 
  8.6      Sec. 13.  Minnesota Statutes 1998, section 162.12, 
  8.7   subdivision 1, is amended to read: 
  8.8      Subdivision 1.  [ESTIMATE OF ACCRUALS.] On or before the 
  8.9   second Tuesday of January By December 15 of each year the 
  8.10  commissioner shall estimate the probable sum amount of money 
  8.11  that will accrue be available to the municipal state-aid street 
  8.12  fund during the first six months of each year ending June 
  8.13  30 that fiscal year.  To the estimated amount the commissioner 
  8.14  shall add the sum of money already accrued in the municipal 
  8.15  state-aid street fund for the last preceding six-month period 
  8.16  ending December 31, adjusted to reflect the amount by which The 
  8.17  amount available is based on actual receipts for the preceding 
  8.18  January 1 to June 30 were different from estimated receipts from 
  8.19  July 1 through November 30, the unallocated fund balance, and 
  8.20  the projected receipts for the remainder of the fiscal year.  
  8.21  The total of such sums available, except for deductions to be 
  8.22  first made as provided herein, shall be apportioned by the 
  8.23  commissioner to the cities having a population of 5,000 or more 
  8.24  as hereinafter provided. 
  8.25     Sec. 14.  Minnesota Statutes 1998, section 162.12, 
  8.26  subdivision 2, is amended to read: 
  8.27     Subd. 2.  [ADMINISTRATIVE COSTS OF DEPARTMENT.] From the 
  8.28  total of such sums the commissioner, each year, shall deduct A 
  8.29  sum of money equal to one and one-half 1-1/2 percent of the 
  8.30  total sums.  The sum so shall be deducted shall be from the 
  8.31  total available in the municipal state-aid street fund, set 
  8.32  aside in a separate account, and shall be used for 
  8.33  administration costs incurred by the state transportation 
  8.34  department in carrying out the provisions relating to the 
  8.35  municipal state-aid street system.  On the 31st day of December 
  8.36  of each year, any money remaining in the account not needed for 
  9.1   administrative costs shall be transferred to the municipal 
  9.2   state-aid street fund. 
  9.3      Sec. 15.  Minnesota Statutes 1998, section 162.12, 
  9.4   subdivision 5, is amended to read: 
  9.5      Subd. 5.  [MUNICIPAL STATE-AID STREET REVOLVING LOAN 
  9.6   ACCOUNT.] A municipal state-aid street revolving loan account is 
  9.7   created in the municipal state-aid street transportation 
  9.8   revolving loan fund.  The commissioner may transfer to the 
  9.9   account the amount allocated under section 162.125.  Money in 
  9.10  the account may be used to make loans.  Funds in the municipal 
  9.11  state-aid street revolving loan account may be used only for aid 
  9.12  in the construction, improvement, and maintenance of municipal 
  9.13  state-aid streets.  Funds in the account may not be used for any 
  9.14  toll facilities project or congestion-pricing project.  
  9.15  Repayments and interest from loans from the municipal state-aid 
  9.16  street revolving loan account must be credited to that account.  
  9.17  Money in the account is annually appropriated to the 
  9.18  commissioner and does not lapse.  Interest earned from 
  9.19  investment of money in this account must be deposited in the 
  9.20  municipal state-aid street revolving loan account. 
  9.21     Sec. 16.  Minnesota Statutes 1998, section 174.02, is 
  9.22  amended by adding a subdivision to read: 
  9.23     Subd. 7.  [LOANS TO COMMISSIONER.] The commissioner of 
  9.24  transportation may apply for and receive loans, as defined in 
  9.25  section 446A.085, subdivision 1, paragraph (d), from the 
  9.26  transportation revolving loan fund created in section 446A.085, 
  9.27  and may enter into agreements for the repayments of the loans. 
  9.28     Sec. 17.  Minnesota Statutes 1998, section 174.50, 
  9.29  subdivision 5, is amended to read: 
  9.30     Subd. 5.  [CERTIFICATION AND DISBURSAL FOR PROJECT OF 
  9.31  POLITICAL SUBDIVISION.] Before disbursement of an appropriation 
  9.32  made from the fund to the commissioner of transportation for 
  9.33  grants to subdivisions of the state, the commissioner shall 
  9.34  certify to the commissioner of finance: 
  9.35     (1) that the project for which the grant is made has been 
  9.36  reviewed as provided in subdivision 4; 
 10.1      (2) that the project conforms to the program authorized by 
 10.2   the appropriation law and rules adopted by the department of 
 10.3   transportation consistent therewith; and 
 10.4      (3) that the financing of any estimated cost of the project 
 10.5   in excess of the amount of the grant is assured by the 
 10.6   appropriation of the proceeds of bonds or other funds of the 
 10.7   subdivision, or by a grant from an agency of the federal 
 10.8   government, within the amount of funds then appropriated to that 
 10.9   agency and allocated by it to projects within the state, and by 
 10.10  an irrevocable undertaking, in a resolution of the governing 
 10.11  body of the subdivision, to use all funds so made available 
 10.12  exclusively for the project, and to pay any additional amount by 
 10.13  which the cost exceeds the estimate through appropriation to the 
 10.14  construction fund of additional funds or the proceeds of 
 10.15  additional bonds to be issued by the subdivision. 
 10.16     Sec. 18.  Minnesota Statutes 1998, section 222.63, 
 10.17  subdivision 4, is amended to read: 
 10.18     Subd. 4.  [DISPOSITION PERMITTED.] (a) The commissioner may 
 10.19  lease any rail line or right-of-way held in the state rail bank 
 10.20  or enter into an agreement with any person for the operation of 
 10.21  any rail line or right-of-way for any of the purposes set forth 
 10.22  in subdivision 2 in accordance with a fee schedule to be 
 10.23  developed by the commissioner. 
 10.24     (b) The commissioner may convey any rail line or 
 10.25  right-of-way, for consideration or for no consideration and upon 
 10.26  other terms as the commissioner may determine to be in the 
 10.27  public interest, to any other state agency or to a governmental 
 10.28  subdivision of the state having power by law to utilize it for 
 10.29  any of the purposes set forth in subdivision 2. 
 10.30     (c) The commissioner may convey a portion of previously 
 10.31  acquired rail bank right-of-way to a state agency or 
 10.32  governmental subdivision when the commissioner determines that: 
 10.33     (1) the portion to be conveyed is in excess of that needed 
 10.34  for the purposes stated in subdivision 2; 
 10.35     (2) the conveyance is upon terms and conditions agreed upon 
 10.36  by both the commissioner and the state agency or governmental 
 11.1   subdivision; 
 11.2      (3) after the sale, the rail bank corridor will continue to 
 11.3   meet the future public and commercial transportation and 
 11.4   transmission needs of the state; and 
 11.5      (4) the conveyance will not reduce the width of the rail 
 11.6   bank corridor to less than 50 feet. 
 11.7      Proceeds from a sale shall be deposited in the rail bank 
 11.8   maintenance account described in subdivision 8. 
 11.9      Sec. 19.  Minnesota Statutes 1998, section 360.0151, 
 11.10  subdivision 2, is amended to read: 
 11.11     Subd. 2.  [GRANTS AUTHORIZED.] (a) The commissioner may 
 11.12  make air service marketing grants to political subdivisions that 
 11.13  own and operate airports designated by order of the commissioner 
 11.14  as key airports.  The commissioner shall make a project 
 11.15  agreement with each political subdivision receiving a grant 
 11.16  under this section that provides for: 
 11.17     (1) a detailed description of the project for which the 
 11.18  grant is provided; 
 11.19     (2) a schedule of the project; and 
 11.20     (3) the division of costs of the project between the state 
 11.21  and the recipient. 
 11.22     (b) Payments by the commissioner under a project agreement 
 11.23  may only be made to reimburse local costs already incurred. 
 11.24     Sec. 20.  Minnesota Statutes 1998, section 360.032, 
 11.25  subdivision 1a, is amended to read: 
 11.26     Subd. 1a.  [MUNICIPALITY MAY ACQUIRE OR MOVE AIRPORT 
 11.27  PROPERTY; REIMBURSEMENT.] A municipality may exercise the powers 
 11.28  set forth in this subdivision solely for the purpose of 
 11.29  assisting the relocation of air navigation facilities, 
 11.30  structures, and other property incidental to airport operations, 
 11.31  which are located at an airport owned or formerly owned by the 
 11.32  municipality. 
 11.33     A municipality may acquire air navigation facilities, 
 11.34  structures and other property incidental to airport operations, 
 11.35  which are located at an airport owned or formerly owned by the 
 11.36  municipality.  In lieu of such acquisition, the municipality may 
 12.1   move and relocate such property to another public airport.  The 
 12.2   manner of acquisition of such property shall be in accordance 
 12.3   with subdivision 2.  The municipality may expend its funds to 
 12.4   pay for the costs of such acquisition, moving and relocation. 
 12.5   The commissioner may pay a portion of such acquisition, moving 
 12.6   and relocation costs in accordance with the provisions of 
 12.7   section 360.305, subdivision 4, clause (2) paragraph (b) or (c). 
 12.8      Sec. 21.  Minnesota Statutes 1998, section 360.305, 
 12.9   subdivision 4, is amended to read: 
 12.10     Subd. 4.  [COSTS ALLOCATED; LOCAL CONTRIBUTION; HANGAR 
 12.11  CONSTRUCTION REVOLVING ACCOUNT.] (1) (a) Except as otherwise 
 12.12  provided in this subdivision, the commissioner of transportation 
 12.13  shall require as a condition of assistance by the state that the 
 12.14  political subdivision, municipality, or public corporation make 
 12.15  a substantial contribution to the cost of the construction, 
 12.16  improvement, maintenance, or operation, these costs are referred 
 12.17  to as project costs of the airport, in connection with which the 
 12.18  assistance of the state is sought.  These costs are referred to 
 12.19  as project costs.  
 12.20     (2) (b) For any airport, whether key, intermediate or 
 12.21  landing strip, where only state and local funds are to be used, 
 12.22  the contribution shall be not less than one-fifth of the sum of: 
 12.23     (a) (1) the project costs, 
 12.24     (b) (2) acquisition costs of the land and clear zones, 
 12.25  which are referred to as "acquisition costs." 
 12.26     (c) For any airport where federal, state and local funds 
 12.27  are to be used, the contribution shall not be less than 
 12.28  one-tenth of the sum of the project costs and acquisition costs. 
 12.29     (3) (d) The commissioner may pay the total cost of radio 
 12.30  and navigational aids. 
 12.31     (4) (e) Notwithstanding clause (2) paragraph (b) or (c), 
 12.32  the commissioner may pay all of the project costs of a new 
 12.33  landing strip, but not an intermediate airport or key airport, 
 12.34  or may pay an amount equal to the federal funds granted and used 
 12.35  for a new landing strip plus all of the remaining project costs; 
 12.36  but the total amount paid by the commissioner for the project 
 13.1   costs of a new landing strip, unless specifically authorized by 
 13.2   an act appropriating funds for the new landing strip, shall not 
 13.3   exceed $200,000. 
 13.4      (5) (f) Notwithstanding clause (2) paragraph (b) or (c), 
 13.5   the commissioner may pay all the project costs for research and 
 13.6   development projects, including, but not limited to noise 
 13.7   abatement; provided that in no event shall the sums expended 
 13.8   under this clause paragraph exceed five percent of the amount 
 13.9   appropriated for construction grants.  
 13.10     (6) (g) To receive aid under this section for project costs 
 13.11  or for acquisition costs, the municipality must enter into an 
 13.12  agreement with the commissioner giving assurance that the 
 13.13  airport will be operated and maintained in a safe, serviceable 
 13.14  manner for aeronautical purposes only for the use and benefit of 
 13.15  the public: 
 13.16     (1) for a period of 20 years after the date that the any 
 13.17  state funds for project costs are received by the municipality; 
 13.18  and 
 13.19     (2) for 99 years after the date that any state funds for 
 13.20  acquisition costs are received by the municipality.  
 13.21  The agreement may contain other conditions as the commissioner 
 13.22  deems reasonable. 
 13.23     (7) (h) The commissioner shall establish a hangar 
 13.24  construction revolving account which shall be used for the 
 13.25  purpose of financing the construction of hangar buildings to be 
 13.26  constructed by municipalities owning airports.  All 
 13.27  municipalities owning airports are authorized to enter into 
 13.28  contracts for the construction of hangars, and contracts with 
 13.29  the commissioner for the financing of hangar construction for an 
 13.30  amount and period of time as may be determined by the 
 13.31  commissioner and municipality.  All receipts from the financing 
 13.32  contracts shall be deposited in the hangar construction 
 13.33  revolving account and are reappropriated for the purpose of 
 13.34  financing construction of hangar buildings.  The commissioner 
 13.35  may pay from the hangar construction revolving account 80 
 13.36  percent of the cost of financing construction of hangar 
 14.1   buildings.  For purposes of this clause, the "construction" of 
 14.2   hangars shall include their design.  The commissioner shall 
 14.3   transfer up to $4,100,000 from the state airports fund to the 
 14.4   hangar construction revolving account. 
 14.5      (8) (i) The commissioner may pay a portion of the purchase 
 14.6   price of any airport maintenance and safety equipment and of the 
 14.7   actual airport snow removal costs incurred by any municipality.  
 14.8   The portion to be paid by the state shall not exceed two-thirds 
 14.9   of the cost of the purchase price or snow removal.  To receive 
 14.10  aid a municipality must enter into an agreement of the type 
 14.11  referred to in clause (6) paragraph (g). 
 14.12     (9) (j) This subdivision shall apply only to project costs 
 14.13  or acquisition costs of municipally owned airports which are 
 14.14  incurred after June 1, 1971. 
 14.15     Sec. 22.  Minnesota Statutes 1998, section 446A.085, 
 14.16  subdivision 3, is amended to read: 
 14.17     Subd. 3.  [ESTABLISHMENT OF FUND.] A transportation 
 14.18  revolving loan fund is established to make loans for the 
 14.19  purposes described in subdivision 2.  A highway account is 
 14.20  established in the fund for highway projects.  A transit account 
 14.21  is established in the fund for transit capital projects.  The 
 14.22  transportation revolving loan fund shall receive federal money 
 14.23  under the act and money from any source other than the trunk 
 14.24  highway fund, the county state-aid highway fund, and the 
 14.25  municipal state-aid street fund.  Money received under this 
 14.26  section must be paid to the state treasurer and credited to the 
 14.27  transportation revolving loan fund.  Money in the fund is 
 14.28  annually appropriated to the commissioner and does not lapse.  
 14.29  The fund must be credited with investment income, and with 
 14.30  repayments of principal and interest, except for servicing fees 
 14.31  assessed under sections 446A.04, subdivision 5, and 446A.11, 
 14.32  subdivision 8. 
 14.33     Sec. 23.  Minnesota Statutes 1998, section 446A.085, 
 14.34  subdivision 6, is amended to read: 
 14.35     Subd. 6.  [TRANSPORTATION COMMITTEE.] The transportation 
 14.36  committee may make authorize the making of loans to borrowers by 
 15.1   the authority for transportation purposes authorized by the act, 
 15.2   without further action by the authority.  The authority may not 
 15.3   make loans for transportation purposes without the approval of 
 15.4   the transportation committee.  Each project must be certified by 
 15.5   the commissioner of transportation before its consideration by 
 15.6   the transportation committee. 
 15.7      Sec. 24.  Minnesota Statutes 1998, section 473.1466, is 
 15.8   amended to read: 
 15.9      473.1466 [PERFORMANCE AUDIT; TRANSIT EVALUATION.] 
 15.10     (a) In 1997 and every four years thereafter, the council 
 15.11  shall provide for an independent entity selected through a 
 15.12  request for proposal process conducted nationwide to do a 
 15.13  performance audit of the commuting area's transportation system 
 15.14  as a whole.  The performance audit must evaluate the commuting 
 15.15  area's ability to meet the region's needs for effective and 
 15.16  efficient transportation of goods and people, evaluate future 
 15.17  trends and their impacts on the region's transportation system, 
 15.18  and make recommendations for improving the system.  The 
 15.19  performance audit must recommend performance-funding measures.  
 15.20     (b) In 1997 1999 and every two four years thereafter, the 
 15.21  council must evaluate the performance of the metropolitan 
 15.22  transit system's operation in relationship to the regional 
 15.23  transit performance standards developed by the council. 
 15.24     Sec. 25.  [EFFECTIVE DATES.] 
 15.25     Sections 1, 2, 7, and 8, are effective the day following 
 15.26  final enactment.  Sections 3 to 6, 9, 12, 15, 16, and 19 to 23, 
 15.27  are effective July 1, 1999.