1.1                          A bill for an act 
  1.2             relating to highways; providing for advance funding 
  1.3             for interregional corridor, bottleneck reduction, and 
  1.4             other trunk highway projects; amending Minnesota 
  1.5             Statutes 2000, section 161.361; repealing Minnesota 
  1.6             Statutes 2001 Supplement, section 161.362. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 161.361, is 
  1.9   amended to read: 
  1.10     161.361 [ADVANCE FUNDING FOR TRUNK HIGHWAY PROJECTS.] 
  1.11     Subdivision 1.  [ADVANCE FUNDING.] A road authority other 
  1.12  than the commissioner may by agreement with the commissioner 
  1.13  make advances from any available funds to the commissioner to 
  1.14  expedite construction of all or part of a trunk highway.  Money 
  1.15  may be advanced under this section only for projects already 
  1.16  included in the commissioner's ten-year highway work 
  1.17  program.  The total amount of annual repayment to road 
  1.18  authorities under this subdivision must never exceed $10,000,000.
  1.19     Subd. 1a.  [INTERREGIONAL CORRIDORS.] By agreement with the 
  1.20  commissioner, a road authority other than the commissioner or 
  1.21  two or more road authorities that have entered into a joint 
  1.22  powers agreement under section 471.59 may make advances from any 
  1.23  available funds to the commissioner to expedite development of 
  1.24  an interregional transportation corridor, including funds for 
  1.25  design consultants, for right-of-way purchases, for 
  1.26  construction, or for other related expenditures.  The total 
  2.1   amount of annual repayment to road authorities under this 
  2.2   subdivision must never exceed $10,000,000. 
  2.3      Subd. 1b.  [BOTTLENECKS.] By agreement with the 
  2.4   commissioner, a road authority other than the commissioner or 
  2.5   two or more road authorities that have entered into a joint 
  2.6   powers agreement under section 471.59 may make advances from any 
  2.7   available funds to the commissioner to expedite bottleneck 
  2.8   reduction, including funds for design consultants, for 
  2.9   right-of-way purchases, for construction, or for other related 
  2.10  expenditures.  The total amount of annual repayment to road 
  2.11  authorities under this subdivision must never exceed $10,000,000.
  2.12     Subd. 2.  [REPAYMENT.] Subject to the availability of state 
  2.13  money, the commissioner shall repay without interest the 
  2.14  amount amounts advanced under subdivision 1 this section, up to 
  2.15  the state's share of project costs, at the time the project is 
  2.16  scheduled for completion in the highway work program.  The total 
  2.17  amount of annual repayment to road authorities under this 
  2.18  section must never exceed the amount stated in the department's 
  2.19  debt management policy or $10,000,000, whichever is less under 
  2.20  terms of the agreement.  The agreement may provide for payment 
  2.21  of interest for funds advanced under subdivisions 1a and 1b.  
  2.22  The maximum interest rate that may be paid is the rate earned by 
  2.23  the state on invested treasurer's cash for the month before the 
  2.24  date the agreement is executed or the actual interest paid by 
  2.25  the road authority in borrowing for the amount advanced, 
  2.26  whichever rate is less. 
  2.27     Sec. 2.  [REPEALER.] 
  2.28     Minnesota Statutes 2001 Supplement, section 161.362, is 
  2.29  repealed.