1.1                          A bill for an act 
  1.2             relating to transportation; modifying financing 
  1.3             procedures for interregional transportation corridor; 
  1.4             modifying provisions relating to statewide 
  1.5             communications system and clarifying appropriation of 
  1.6             related fees; modifying provisions relating to 
  1.7             transportation revolving loan fund; making technical 
  1.8             and clarifying changes; amending Minnesota Statutes 
  1.9             2000, sections 161.23, subdivision 3; 174.70, 
  1.10            subdivisions 2 and 3; and 446A.085; Laws 1999, chapter 
  1.11            238, article 1, section 2, subdivision 7; proposing 
  1.12            coding for new law in Minnesota Statutes, chapter 161. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 2000, section 161.23, 
  1.15  subdivision 3, is amended to read: 
  1.16     Subd. 3.  [LEASING.] The commissioner may lease for the 
  1.17  term between the acquisition and sale thereof and for a fair 
  1.18  rental rate and upon such terms and conditions as the 
  1.19  commissioner deems proper, any excess real estate acquired under 
  1.20  the provisions of this section, and any real estate acquired in 
  1.21  fee for trunk highway purposes and not presently needed 
  1.22  therefor.  All rents received from the leases shall be paid into 
  1.23  the state treasury.  Seventy percent of the rents shall be 
  1.24  credited to the trunk highway fund.  The remaining 30 percent 
  1.25  shall be paid to the county treasurer where the real estate is 
  1.26  located, and shall be distributed in the same manner as real 
  1.27  estate taxes.  This subdivision does not apply to real estate 
  1.28  leased for the purpose of providing commercial and public 
  1.29  service advertising pursuant to franchise agreements as provided 
  2.1   in sections 160.276 to 160.278 or to fees collected under 
  2.2   section 174.70, subdivision 2. 
  2.3      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  2.4   following final enactment. 
  2.5      Sec. 2.  [161.362] [ADVANCE FUNDING FOR INTERREGIONAL 
  2.6   CORRIDOR DEVELOPMENT.] 
  2.7      Subdivision 1.  [CORRIDOR DEVELOPMENT.] By agreement with 
  2.8   the commissioner, a road authority other than the commissioner 
  2.9   or two or more road authorities that have entered into a joint 
  2.10  powers agreement under section 471.59 may make advances from any 
  2.11  available funds to the commissioner to expedite development of 
  2.12  an interregional transportation corridor, including funds for 
  2.13  design consultants, for right-of-way purchases, for 
  2.14  construction, or for other related expenditures. 
  2.15     Subd. 2.  [REPAYMENT.] Subject to the availability of state 
  2.16  money, the commissioner shall repay the amount advanced under 
  2.17  this section, up to the state's share of costs, under terms of 
  2.18  the agreement.  The agreement may provide for payment of 
  2.19  interest on the amount of advanced funds.  The maximum interest 
  2.20  rate that may be paid is the rate earned by the state on 
  2.21  invested treasurer's cash for the month before the date the 
  2.22  agreement is executed or the actual interest paid by the road 
  2.23  authority in borrowing for the amount advanced, whichever rate 
  2.24  is less.  The total amount of annual repayment to road 
  2.25  authorities under this section and section 161.361 must never 
  2.26  exceed the amount stated in the department's debt management 
  2.27  policy or $10,000,000, whichever is less. 
  2.28     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  2.29  following final enactment. 
  2.30     Sec. 3.  Minnesota Statutes 2000, section 174.70, 
  2.31  subdivision 2, is amended to read: 
  2.32     Subd. 2.  [IMPLEMENTATION.] In order to facilitate 
  2.33  construction and maintenance of the initial backbone of the the 
  2.34  state's communications system described in subdivision 1 systems 
  2.35  and to reduce the proliferation of communications towers, the 
  2.36  commissioner shall may, by purchase, lease, gift, exchange, or 
  3.1   other means, obtain sites for the erection of towers and the 
  3.2   location of equipment and shall may construct buildings and 
  3.3   structures needed for developing the state's communications 
  3.4   system systems.  The commissioner may negotiate with commercial 
  3.5   wireless service providers and other tower owners to obtain 
  3.6   sites, towers, and equipment.  Notwithstanding sections 161.433, 
  3.7   161.434, 161.45, and 161.46, the commissioner may by 
  3.8   agreement lease, allow, or permit commercial wireless service 
  3.9   providers or other tower owners to install privately owned 
  3.10  equipment on state-owned lands, buildings, and other structures 
  3.11  under the jurisdiction of the commissioner when it is practical 
  3.12  and feasible to do so.  The commissioner shall annually publish 
  3.13  a list of state-owned tower sites that are available to 
  3.14  commercial wireless service providers and other tower owners for 
  3.15  installation of their equipment.  The commissioner shall charge 
  3.16  a site use fee for the value of the real property or structure 
  3.17  made available.  In lieu of a site use fee, the commissioner may 
  3.18  make agreements with commercial wireless service providers or 
  3.19  other tower owners to place state equipment on privately owned 
  3.20  towers and may accept (1) improvements to state-owned the 
  3.21  state's public safety communications systems facilities or real 
  3.22  or personal property, or (2) services provided by a commercial 
  3.23  wireless service provider or other tower owner.  
  3.24     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  3.25  following final enactment. 
  3.26     Sec. 4.  Minnesota Statutes 2000, section 174.70, 
  3.27  subdivision 3, is amended to read: 
  3.28     Subd. 3.  [DEPOSIT OF FEES; APPROPRIATION.] Fees collected 
  3.29  under subdivision 2 must be deposited in the trunk highway 
  3.30  fund.  The fees so collected are appropriated to the 
  3.31  commissioner to pay for the commissioner's share and state 
  3.32  patrol's share of the costs of constructing developing and 
  3.33  maintaining the communication communications system sites 
  3.34  systems that serve state agencies. 
  3.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  3.36  following final enactment. 
  4.1      Sec. 5.  Minnesota Statutes 2000, section 446A.085, is 
  4.2   amended to read: 
  4.3      446A.085 [TRANSPORTATION REVOLVING LOAN FUND.] 
  4.4      Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
  4.5   section, the terms defined in this subdivision have the meanings 
  4.6   given them. 
  4.7      (a)  [ACT.] (b) "Act" means the National Highway System 
  4.8   Designation Act of 1995, Public Law Number 104-59, as amended. 
  4.9      (b)  [BORROWER.] (c) "Borrower" means the state, counties, 
  4.10  cities, and other governmental entities eligible under the act 
  4.11  and state law to apply for and receive loans from the 
  4.12  transportation revolving loan fund, the trunk highway revolving 
  4.13  loan account, the county state-aid highway revolving loan 
  4.14  account, and the municipal state-aid street revolving loan 
  4.15  account. 
  4.16     (c)  [DEPARTMENT.] "Department" means the department of 
  4.17  transportation. 
  4.18     (d)  [LOAN.] "Loan" means financial assistance provided for 
  4.19  all or part of the cost of a project including money disbursed 
  4.20  in anticipation of reimbursement or repayment, loan guarantees, 
  4.21  lines of credit, credit enhancements, equipment financing 
  4.22  leases, bond insurance, or other forms of financial assistance. 
  4.23     (e)  [TRANSPORTATION COMMITTEE.] "Transportation committee" 
  4.24  means a committee of the Minnesota public facilities authority, 
  4.25  acting on behalf of the Minnesota public facilities authority, 
  4.26  consisting of the commissioner of the department of trade and 
  4.27  economic development, the commissioner of finance, and the 
  4.28  commissioner of transportation. 
  4.29     Subd. 2.  [PURPOSE.] The purpose of the transportation 
  4.30  revolving loan fund, the trunk highway revolving loan account, 
  4.31  the county state-aid highway revolving loan account, and the 
  4.32  municipal state-aid street revolving loan account is to provide 
  4.33  loans and matching money for public transportation projects 
  4.34  eligible for financing or aid under any federal act or program 
  4.35  or state law, including, without limitation, the study of the 
  4.36  feasibility of construction, reconstruction, resurfacing, 
  5.1   restoring, rehabilitation, or replacement of transportation 
  5.2   facilities; acquisition of right-of-way; and maintenance, 
  5.3   repair, improvement, or construction of city, town, county, or 
  5.4   state highways, roads, streets, rights-of-way, bridges, tunnels, 
  5.5   railroad-highway crossings, drainage structures, signs, 
  5.6   maintenance and operation facilities, guardrails, and protective 
  5.7   structures used in connection with highways or transit projects. 
  5.8   Enhancement items, including without limitation bicycle paths, 
  5.9   ornamental lighting, and landscaping, are eligible for financing 
  5.10  provided they are an integral part of overall project design and 
  5.11  construction of a federal-aid highway.  Money in the fund may 
  5.12  not be used for any toll facilities project or 
  5.13  congestion-pricing project. 
  5.14     Subd. 3.  [ESTABLISHMENT OF FUND.] A transportation 
  5.15  revolving loan fund is established to make loans for the 
  5.16  purposes described in subdivision 2.  A highway account is 
  5.17  established in the fund for highway projects eligible under 
  5.18  United States Code, title 23.  A transit account is established 
  5.19  in the fund for transit capital projects eligible under United 
  5.20  States Code, title 49.  A state funds general loan account is 
  5.21  established in the fund for transportation projects eligible 
  5.22  under state law.  Other accounts may be established in the fund 
  5.23  as necessary for its management and administration.  The 
  5.24  transportation revolving loan fund shall receive receives 
  5.25  federal money under the act and money from any source.  Money 
  5.26  received under this section must be paid to the state treasurer 
  5.27  and credited to the transportation revolving loan fund.  Money 
  5.28  in the fund is annually appropriated to the commissioner 
  5.29  authority and does not lapse.  The fund must be credited with 
  5.30  investment income, and with repayments of principal and 
  5.31  interest, except for servicing fees assessed under sections 
  5.32  446A.04, subdivision 5, and 446A.11, subdivision 8. 
  5.33     Subd. 4.  [MANAGEMENT OF FUND AND ACCOUNTS.] The authority 
  5.34  shall manage and administer the transportation revolving loan 
  5.35  fund, the trunk highway revolving loan account, the county 
  5.36  state-aid highway revolving loan account, and the municipal 
  6.1   state-aid street revolving loan account and individual accounts 
  6.2   in the fund.  For those purposes, the authority may exercise all 
  6.3   powers provided in this chapter. 
  6.4      Subd. 5.  [TRANSFER OF MONEY.] With the consent of the 
  6.5   transportation committee, the commissioner of transportation may 
  6.6   transfer money from the trunk highway revolving loan account to 
  6.7   the trunk highway fund, from the county state-aid highway 
  6.8   revolving loan account to the county state-aid highway fund, and 
  6.9   from the municipal state-aid street revolving loan account to 
  6.10  the municipal state-aid street fund. 
  6.11     Subd. 6.  [TRANSPORTATION COMMITTEE.] The transportation 
  6.12  committee may authorize the making of loans to borrowers by the 
  6.13  authority for transportation purposes authorized by the act or 
  6.14  this section, without further action by the authority.  The 
  6.15  authority may not make loans for transportation purposes without 
  6.16  the approval of the transportation committee.  Each project must 
  6.17  be certified by the commissioner of transportation before its 
  6.18  consideration by the transportation committee. 
  6.19     Subd. 7.  [APPLICATIONS.] Applicants for loans must submit 
  6.20  an application to the transportation committee on forms 
  6.21  prescribed by the transportation committee.  The applicant must 
  6.22  provide the following information: 
  6.23     (1) the estimated cost of the project and the amount of the 
  6.24  loan sought; 
  6.25     (2) other possible sources of funding in addition to loans 
  6.26  sought from the transportation revolving loan fund, the trunk 
  6.27  highway revolving loan account, the county state-aid highway 
  6.28  revolving loan account, or the municipal state-aid street 
  6.29  revolving loan account; 
  6.30     (3) the proposed methods and sources of funds to be used 
  6.31  for repayment of loans received; and 
  6.32     (4) information showing the financial status and ability of 
  6.33  the borrower to repay loans. 
  6.34     Subd. 8.  [CERTIFICATION OF PROJECTS.] The commissioner of 
  6.35  transportation shall consider the following information when 
  6.36  evaluating projects to certify for funding to the transportation 
  7.1   committee: 
  7.2      (1) a description of the nature and purpose of the proposed 
  7.3   transportation project including an explanation of the need for 
  7.4   the project and the reasons why it is in the public interest; 
  7.5      (2) the relationship of the project to the area 
  7.6   transportation improvement program, the approved statewide 
  7.7   transportation improvement program, and to any other 
  7.8   transportation plans required under state or federal law; 
  7.9      (3) the estimated cost of the project and the amount of 
  7.10  loans sought; 
  7.11     (4) proposed sources of funding in addition to loans sought 
  7.12  from the transportation revolving loan fund, the trunk highway 
  7.13  revolving loan account, the county state-aid highway revolving 
  7.14  loan account, or municipal state-aid street revolving loan 
  7.15  account; 
  7.16     (5) the need for the project as part of the overall 
  7.17  transportation system; 
  7.18     (6) the overall economic impact of the project; and 
  7.19     (7) the extent to which completion of the project will 
  7.20  improve the movement of people and freight. 
  7.21     Subd. 9.  [LOAN CONDITIONS.] When making loans from the 
  7.22  transportation revolving loan fund, the trunk highway revolving 
  7.23  loan account, the county state-aid highway revolving loan 
  7.24  account, or the municipal state-aid street revolving loan 
  7.25  account, the transportation committee shall comply with the 
  7.26  conditions applicable provisions of the act and state law.  In 
  7.27  addition, a loan made under this section must: 
  7.28     (1) bear interest at or below market rates or as otherwise 
  7.29  specified in federal law; 
  7.30     (2) have a repayment term not longer than 30 years; 
  7.31     (3) be fully amortized no later than 30 years after project 
  7.32  completion; 
  7.33     (4) be subject to repayment of principal and interest 
  7.34  beginning not later than five years after the facility financed 
  7.35  with a loan has been completed, or in the case of a highway 
  7.36  project, five years after the facility has opened to traffic; 
  8.1   and 
  8.2      (5) be made disbursed for specific project elements only 
  8.3   after all federal applicable environmental requirements 
  8.4   applicable to the project have been complied with and all 
  8.5   federal environmental requirements have been met. 
  8.6      Subd. 10.  [LOANS IN ANTICIPATION OF FUTURE 
  8.7   APPORTIONMENTS.] A loan may be made to a county, or to a 
  8.8   statutory or home rule charter city having a population of 5,000 
  8.9   or more, in anticipation of repayment of the loan from sums that 
  8.10  will be apportioned to a county from the county state-aid 
  8.11  highway fund under section 162.07 or to a city from the 
  8.12  municipal state-aid street fund under section 162.14. 
  8.13     Subd. 11.  [PAYMENT BY COUNTY OR CITY.] Notwithstanding the 
  8.14  allocation provisions of section 162.08 for counties, and the 
  8.15  apportionment provisions of section 162.14 for cities, sums 
  8.16  apportioned under section 162.13 to a statutory or home rule 
  8.17  charter city, or under section 162.07 to a county, that has loan 
  8.18  repayments due to the transportation revolving loan fund, the 
  8.19  trunk highway revolving loan account, the county state-aid 
  8.20  highway revolving loan account, or the municipal state-aid 
  8.21  street revolving loan account shall be paid by the commissioner 
  8.22  of transportation to the appropriate loan fund or account to 
  8.23  offset the loan repayments that are due. 
  8.24     Subd. 12.  [RULES OF TRANSPORTATION COMMITTEE AND 
  8.25  AUTHORITY.] The commissioner of the department of trade and 
  8.26  economic development shall adopt administrative rules specifying 
  8.27  the procedures that will be used for the administration of the 
  8.28  duties of the transportation committee and authority.  The rules 
  8.29  must include criteria, standards, and procedures that will be 
  8.30  used for making loans, determining interest rates to be charged 
  8.31  on loans, the amount of project financing to be provided, the 
  8.32  collateral that will be required, the requirements for dedicated 
  8.33  sources of revenue or income streams to ensure repayment of 
  8.34  loans, and the length of repayment terms.  
  8.35     Subd. 13.  [AUTHORITY AND RULES OF DEPARTMENT.] The 
  8.36  commissioner of transportation shall establish, adopt rules for, 
  9.1   and implement a program to identify, assist with the development 
  9.2   of, and certify projects eligible for loans under the act to the 
  9.3   transportation committee.  Until rules are adopted by the 
  9.4   commissioner of transportation, the commissioner of 
  9.5   transportation may certify to the transportation committee any 
  9.6   project that has been reviewed through an approved planning 
  9.7   process that qualifies the project to be included in the 
  9.8   statewide transportation program or amended into the statewide 
  9.9   transportation improvement program. 
  9.10     Subd. 14.  [JOINT RULES.] The commissioner of the 
  9.11  department of trade and economic development and the 
  9.12  commissioner of transportation may adopt a single set of rules. 
  9.13     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  9.14  following final enactment. 
  9.15     Sec. 6.  Laws 1999, chapter 238, article 1, section 2, 
  9.16  subdivision 7, is amended to read: 
  9.17  Subd. 7.  State Roads                912,625,000    923,769,000
  9.18                Summary by Fund
  9.19  General                 59,000          9,000
  9.20  Trunk Highway      912,566,000    923,760,000
  9.21  The amounts that may be spent from this 
  9.22  appropriation for each activity are as 
  9.23  follows:  
  9.24  (a) State Road Construction 
  9.25     516,684,000    521,707,000
  9.26  It is estimated that these 
  9.27  appropriations will be funded as 
  9.28  follows:  
  9.29  Federal Highway Aid 
  9.30     275,000,000    275,000,000
  9.31  Highway User Taxes 
  9.32     241,684,000    246,707,000
  9.33  The commissioner of transportation 
  9.34  shall notify the chair of the 
  9.35  transportation budget division of the 
  9.36  senate and chair of the transportation 
  9.37  finance committee of the house of 
  9.38  representatives quarterly of any events 
  9.39  that should cause these estimates to 
  9.40  change. 
  9.41  This appropriation is for the actual 
  9.42  construction, reconstruction, and 
 10.1   improvement of trunk highways.  This 
 10.2   includes the cost of actual payment to 
 10.3   landowners for lands acquired for 
 10.4   highway rights-of-way, payment to 
 10.5   lessees, interest subsidies, and 
 10.6   relocation expenses. 
 10.7   The commissioner may transfer up to 
 10.8   $15,000,000 each year to the trunk 
 10.9   highway revolving loan account. 
 10.10  The commissioner may receive money 
 10.11  covering other shares of the cost of 
 10.12  partnership projects.  These receipts 
 10.13  are appropriated to the commissioner 
 10.14  for these projects. 
 10.15  (b) Highway Debt Service 
 10.16      13,949,000     13,175,000
 10.17  $3,949,000 the first year and 
 10.18  $3,175,000 the second year are for 
 10.19  transfer to the state bond fund. 
 10.20  If this appropriation is insufficient 
 10.21  to make all transfers required in the 
 10.22  year for which it is made, the 
 10.23  commissioner of finance shall notify 
 10.24  the committee on state government 
 10.25  finance of the senate and the committee 
 10.26  on ways and means of the house of 
 10.27  representatives of the amount of the 
 10.28  deficiency and shall then transfer that 
 10.29  amount under the statutory open 
 10.30  appropriation.  
 10.31  Any excess appropriation must be 
 10.32  canceled to the trunk highway fund. 
 10.33  (c) Research and Investment Management 
 10.34      12,450,000     12,597,000
 10.35  $600,000 the first year and $600,000 
 10.36  the second year are available for 
 10.37  grants for transportation studies 
 10.38  outside the metropolitan area to 
 10.39  identify critical concerns, problems, 
 10.40  and issues.  These grants are available 
 10.41  to (1) regional development 
 10.42  commissions, and (2) in regions where 
 10.43  no regional development commission is 
 10.44  functioning, joint powers boards 
 10.45  established under agreement of two or 
 10.46  more political subdivisions in the 
 10.47  region to exercise the planning 
 10.48  functions of a regional development 
 10.49  commission, and (3) in regions where no 
 10.50  regional development commission or 
 10.51  joint powers board is functioning, the 
 10.52  department's district office for that 
 10.53  region. 
 10.54  $216,000 the first year and $216,000 
 10.55  the second year are available for 
 10.56  grants to metropolitan planning 
 10.57  organizations outside the seven-county 
 10.58  metropolitan area. 
 10.59  $75,000 the first year and $25,000 the 
 11.1   second year are for transportation 
 11.2   planning relating to the 2000 census.  
 11.3   This appropriation may not be added to 
 11.4   the agency's budget base. 
 11.5   $75,000 the first year and $75,000 the 
 11.6   second year are for a transportation 
 11.7   research contingent account to finance 
 11.8   research projects that are reimbursable 
 11.9   from the federal government or from 
 11.10  other sources.  If the appropriation 
 11.11  for either year is insufficient, the 
 11.12  appropriation for the other year is 
 11.13  available for it. 
 11.14  (d) Central Engineering Services
 11.15      68,563,000     70,940,000
 11.16  (e) Design and Construction Engineering
 11.17      80,592,000     83,246,000
 11.18  $1,000,000 the first year and $500,000 
 11.19  the second year are for transportation 
 11.20  planning relating to the 2000 census.  
 11.21  This appropriation may not be added to 
 11.22  the agency's budget base. 
 11.23  (f) State Road Operations
 11.24     214,703,000    216,561,000
 11.25  $1,000,000 each year are for 
 11.26  enhancements to the freeway operations 
 11.27  program in the metropolitan area. 
 11.28  $1,000,000 the first year and 
 11.29  $1,000,000 the second year are for 
 11.30  maintenance services including rest 
 11.31  area maintenance, vehicle insurance, 
 11.32  ditch assessments, and tort claims. 
 11.33  $3,000,000 the first year and 
 11.34  $1,000,000 the second year are for 
 11.35  improved highway striping. 
 11.36  $500,000 the first year and $500,000 
 11.37  the second year are for safety 
 11.38  technology applications. 
 11.39  $150,000 the first year and $150,000 
 11.40  the second year are for statewide asset 
 11.41  preservation and repair. 
 11.42  $750,000 the first year and $750,000 
 11.43  the second year are for the 
 11.44  implementation of the transportation 
 11.45  worker concept. 
 11.46  The commissioner shall establish a task 
 11.47  force to study seasonal road 
 11.48  restrictions and report to the 
 11.49  legislature its findings and any 
 11.50  recommendations for legislative 
 11.51  action.  The commissioner shall appoint 
 11.52  members representing: 
 11.53  (1) aggregate and ready-mix producers; 
 11.54  (2) solid waste haulers; 
 12.1   (3) liquid waste haulers; 
 12.2   (4) the logging industry; 
 12.3   (5) the construction industry; and 
 12.4   (6) agricultural interests. 
 12.5   The task force shall report to the 
 12.6   legislature by February 1, 2000, on its 
 12.7   findings and recommendations. 
 12.8   (g) Electronic Communications
 12.9        5,684,000      5,543,000
 12.10                Summary by Fund
 12.11  General                  59,000         9,000
 12.12  Trunk Highway         5,625,000     5,534,000
 12.13  $9,000 the first year and $9,000 the 
 12.14  second year are from the general fund 
 12.15  for equipment and operation of the 
 12.16  Roosevelt signal tower for Lake of the 
 12.17  Woods weather broadcasting. 
 12.18  $50,000 the first year from the general 
 12.19  fund is for purchase of equipment for 
 12.20  the 800 MHz public safety radio system. 
 12.21  $200,000 the first year is from the 
 12.22  trunk highway fund for costs resulting 
 12.23  from the termination of agreements made 
 12.24  under article 2, sections 31 and 89, 
 12.25  and Minnesota Statutes, section 174.70, 
 12.26  subdivision 2.  This appropriation does 
 12.27  not cancel but is available until spent.
 12.28  In each year of the biennium the 
 12.29  commissioner shall request the 
 12.30  commissioner of administration to 
 12.31  request bids for the purchase of 
 12.32  digital mobile and portable radios to 
 12.33  be used on the metropolitan regional 
 12.34  public safety radio communications 
 12.35  system. 
 12.36     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 12.37  following final enactment.