1.1                          A bill for an act 
  1.2             relating to highways; modifying provisions governing 
  1.3             trunk highway bond proceeds and highway bond-financed 
  1.4             property; amending Minnesota Statutes 2000, section 
  1.5             16A.641, subdivision 8; proposing coding for new law 
  1.6             in Minnesota Statutes, chapter 167. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 16A.641, 
  1.9   subdivision 8, is amended to read: 
  1.10     Subd. 8.  [APPROPRIATION OF PROCEEDS.] (a) The proceeds of 
  1.11  bonds issued under each law are appropriated for the purposes 
  1.12  described in the law and in this subdivision.  This 
  1.13  appropriation may never be canceled.  
  1.14     (b) Before the proceeds are received in the proper special 
  1.15  fund, the commissioner may transfer to that fund from the 
  1.16  general fund amounts not exceeding the expected proceeds from 
  1.17  the next bond sale.  The commissioner shall return these amounts 
  1.18  to the general fund by transferring proceeds when received.  The 
  1.19  amounts of these transfers are appropriated from the general 
  1.20  fund and from the bond proceeds.  
  1.21     (c) Actual and necessary travel and subsistence expenses of 
  1.22  employees and all other nonsalary expenses incidental to the 
  1.23  sale, printing, execution, and delivery of bonds must be paid 
  1.24  from the proceeds.  The proceeds are appropriated for this 
  1.25  purpose.  Bond proceeds must not be used to pay any part of the 
  1.26  salary of a state employee involved in the sale, printing, 
  2.1   execution, or delivery of the bonds. 
  2.2      (d) Bond proceeds remaining in a special fund after the 
  2.3   purposes for which the bonds were issued are accomplished or 
  2.4   abandoned, as certified by the head of the agency administering 
  2.5   the special fund, or as determined by the commissioner, unless 
  2.6   devoted under the appropriation act to another purpose 
  2.7   designated in the act, shall be transferred to the state bond 
  2.8   fund. 
  2.9      (e) Before the proceeds of state highway bonds are received 
  2.10  in the trunk highway fund, the commissioner may either (1) 
  2.11  transfer funds to the trunk highway fund from the general fund, 
  2.12  or (2) authorize the use of funds in the trunk highway fund, in 
  2.13  an amount not exceeding the expected proceeds from the next 
  2.14  state highway bond sale.  These funds shall be used in 
  2.15  accordance with the legislative authorization to sell state 
  2.16  highway bonds.  The commissioner shall return these funds to the 
  2.17  general fund or replace the funds used from the trunk highway 
  2.18  fund by transferring proceeds when received.  The amounts of 
  2.19  these transfers are appropriated from the general fund and from 
  2.20  the state highway bond proceeds. 
  2.21     Sec. 2.  [167.46] [PROPERTY PURCHASED WITH HIGHWAY BOND 
  2.22  PROCEEDS.] 
  2.23     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
  2.24  subdivision apply to this section. 
  2.25     (b) "State trunk highway bond-financed property" means 
  2.26  property acquired, improved, or maintained in whole or in part 
  2.27  with the proceeds of state trunk highway bonds authorized to be 
  2.28  issued under article XIV, section 11, of the Minnesota 
  2.29  Constitution. 
  2.30     (c) "Outstanding state trunk highway bonds" means the 
  2.31  dollar amount of state trunk highway bonds, including any 
  2.32  refunding state trunk highway bonds, issued with respect to 
  2.33  state trunk highway bond-financed property, less the principal 
  2.34  amount of state trunk highway bonds paid or defeased. 
  2.35     Subd. 2.  [LEASES.] State trunk highway bond-financed 
  2.36  property may only be leased for those purposes authorized by 
  3.1   law, and must be leased in accordance with the requirements of 
  3.2   all other laws and duly adopted rules applicable thereto, 
  3.3   orders, if any, of the commissioner of finance intended to 
  3.4   ensure the legality and tax-exempt status of outstanding state 
  3.5   trunk highway bonds, and with the approval of the commissioner 
  3.6   of finance.  A lease of state trunk highway bond-financed 
  3.7   property, including any renewals that are solely at the option 
  3.8   of the lessee, must be for a term substantially less than the 
  3.9   useful life of the state trunk highway bond-financed property, 
  3.10  but may allow renewal beyond that term upon a determination by 
  3.11  the commissioner of transportation that the use continues to be 
  3.12  authorized by law and that the additional term is authorized by 
  3.13  law.  A lease of state trunk highway bond-financed property must 
  3.14  be terminable by the commissioner of transportation if the other 
  3.15  contracting party defaults under the contract, and must provide 
  3.16  for oversight by the commissioner of transportation.  
  3.17  Notwithstanding the provisions of any other law, money received 
  3.18  by the state under a lease of state trunk highway bond-financed 
  3.19  property must be paid to the commissioner of transportation, 
  3.20  deposited in the state trunk highway fund, and used to pay or 
  3.21  redeem or defease any outstanding state trunk highway bonds in 
  3.22  accordance with the commissioner of finance's order authorizing 
  3.23  their issuance.  The money paid to the commissioner of 
  3.24  transportation is appropriated for this purpose.  Money in 
  3.25  excess of the foregoing requirement must be applied as otherwise 
  3.26  required by law. 
  3.27     Subd. 3.  [SALES.] State trunk highway bond-financed 
  3.28  property must not be sold unless the sale is for a purpose 
  3.29  authorized by law, the sale is conducted in accordance with 
  3.30  applicable law and duly adopted rules, the sale is made in 
  3.31  accordance with orders, if any, of the commissioner of finance 
  3.32  intended to ensure the legality and tax-exempt status of 
  3.33  outstanding state trunk highway bonds, and the sale is approved 
  3.34  by the commissioner of finance.  Notwithstanding the provisions 
  3.35  of any other law, the net proceeds of a sale of any state trunk 
  3.36  highway bond-financed property must be paid to the commissioner 
  4.1   of transportation, deposited in the state trunk highway fund, 
  4.2   and used to pay or redeem or defease any outstanding trunk 
  4.3   highway bonds in accordance with the commissioner of finance's 
  4.4   order authorizing their issuance.  The net proceeds of sale paid 
  4.5   to the commissioner of transportation are appropriated for these 
  4.6   purposes.  Any net proceeds of sale in excess of the foregoing 
  4.7   requirement must be applied as otherwise required by law.  When 
  4.8   all of the net proceeds of sale have been applied as provided in 
  4.9   this subdivision, the sold property is no longer considered 
  4.10  state trunk highway bond-financed property. 
  4.11     Subd. 4.  [RELATION TO OTHER LAWS.] This section applies to 
  4.12  all state trunk highway bond-financed property unless otherwise 
  4.13  provided by law.