1.1                          A bill for an act 
  1.2             relating to transportation; decreasing minimum 
  1.3             required local contribution to federally funded 
  1.4             airport projects; amending Minnesota Statutes 2002, 
  1.5             section 360.305, subdivision 4. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 360.305, 
  1.8   subdivision 4, is amended to read: 
  1.9      Subd. 4.  [COSTS ALLOCATED; LOCAL CONTRIBUTION; HANGAR 
  1.10  CONSTRUCTION ACCOUNT.] (a) Except as otherwise provided in this 
  1.11  subdivision, the commissioner of transportation shall require as 
  1.12  a condition of assistance by the state that the political 
  1.13  subdivision, municipality, or public corporation make a 
  1.14  substantial contribution to the cost of the construction, 
  1.15  improvement, maintenance, or operation of the airport, in 
  1.16  connection with which the assistance of the state is sought.  
  1.17  These costs are referred to as project costs.  
  1.18     (b) For any airport, whether key, intermediate or landing 
  1.19  strip, where only state and local funds are to be used, the 
  1.20  contribution shall be not less than one-fifth of the sum of: 
  1.21     (1) the project costs; 
  1.22     (2) acquisition costs of the land and clear zones, which 
  1.23  are referred to as acquisition costs. 
  1.24     (c) For any airport where federal, state and local funds 
  1.25  are to be used, the contribution shall not be less than 
  2.1   one-tenth five percent of the sum of the project costs and 
  2.2   acquisition costs. 
  2.3      (d) The commissioner may pay the total cost of radio and 
  2.4   navigational aids. 
  2.5      (e) Notwithstanding paragraph (b) or (c), the commissioner 
  2.6   may pay all of the project costs of a new landing strip, but not 
  2.7   an intermediate airport or key airport, or may pay an amount 
  2.8   equal to the federal funds granted and used for a new landing 
  2.9   strip plus all of the remaining project costs; but the total 
  2.10  amount paid by the commissioner for the project costs of a new 
  2.11  landing strip, unless specifically authorized by an act 
  2.12  appropriating funds for the new landing strip, shall not exceed 
  2.13  $200,000. 
  2.14     (f) Notwithstanding paragraph (b) or (c), the commissioner 
  2.15  may pay all the project costs for research and development 
  2.16  projects, including, but not limited to noise abatement; 
  2.17  provided that in no event shall the sums expended under this 
  2.18  paragraph exceed five percent of the amount appropriated for 
  2.19  construction grants.  
  2.20     (g) To receive aid under this section for project costs or 
  2.21  for acquisition costs, the municipality must enter into an 
  2.22  agreement with the commissioner giving assurance that the 
  2.23  airport will be operated and maintained in a safe, serviceable 
  2.24  manner for aeronautical purposes only for the use and benefit of 
  2.25  the public: 
  2.26     (1) for 20 years after the date that any state funds for 
  2.27  project costs are received by the municipality; and 
  2.28     (2) for 99 years after the date that any state funds for 
  2.29  acquisition costs are received by the municipality.  
  2.30  The agreement may contain other conditions as the commissioner 
  2.31  deems reasonable. 
  2.32     (h) The commissioner shall establish a hangar construction 
  2.33  revolving account which shall be used for the purpose of 
  2.34  financing the construction of hangar buildings to be constructed 
  2.35  by municipalities owning airports.  All municipalities owning 
  2.36  airports are authorized to enter into contracts for the 
  3.1   construction of hangars, and contracts with the commissioner for 
  3.2   the financing of hangar construction for an amount and period of 
  3.3   time as may be determined by the commissioner and municipality.  
  3.4   All receipts from the financing contracts shall be deposited in 
  3.5   the hangar construction revolving account and are reappropriated 
  3.6   for the purpose of financing construction of hangar buildings.  
  3.7   The commissioner may pay from the hangar construction revolving 
  3.8   account 80 percent of the cost of financing construction of 
  3.9   hangar buildings.  For purposes of this clause, the construction 
  3.10  of hangars shall include their design.  The commissioner shall 
  3.11  transfer up to $4,400,000 from the state airports fund to the 
  3.12  hangar construction revolving account. 
  3.13     (i) The commissioner may pay a portion of the purchase 
  3.14  price of any airport maintenance and safety equipment and of the 
  3.15  actual airport snow removal costs incurred by any municipality.  
  3.16  The portion to be paid by the state shall not exceed two-thirds 
  3.17  of the cost of the purchase price or snow removal.  To receive 
  3.18  aid a municipality must enter into an agreement of the type 
  3.19  referred to in paragraph (g). 
  3.20     (j) This subdivision shall apply only to project costs or 
  3.21  acquisition costs of municipally owned airports which are 
  3.22  incurred after June 1, 1971. 
  3.23     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  3.24  following final enactment.