<a id="pl.1.3"></a><var>1.3</var>grants for airport project costs; amending Minnesota Statutes 2008, section <br/>
<a id="pl.1.4"></a><var>1.4</var>360.305, subdivision 4.<br/>
<a id="pl.1.5"></a><var>1.5</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
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<a id="bill.0.1.0"></a><a id="pl.1.6"></a><var>1.6</var>    Section 1. Minnesota Statutes 2008, section 360.305, subdivision 4, is amended to read:<br/>
<a id="pl.1.7"></a><var>1.7</var>    Subd. 4. <b>Costs allocated; local contribution; hangar construction account.</b> (a) <br/>
<a id="pl.1.8"></a><var>1.8</var>Except as otherwise provided in this subdivision, the commissioner of transportation shall <br/>
<a id="pl.1.9"></a><var>1.9</var>require as a condition of assistance by the state that the political subdivision, municipality, <br/>
<a id="pl.1.10"></a><var>1.10</var>or public corporation make a substantial contribution to the cost of the construction, <br/>
<a id="pl.1.11"></a><var>1.11</var>improvement, maintenance, or operation of the airport, in connection with which the <br/>
<a id="pl.1.12"></a><var>1.12</var>assistance of the state is sought. These costs are referred to as project costs.<br/>
<a id="pl.1.13"></a><var>1.13</var>(b) For any airport, whether key, intermediate, or landing strip, where only state and <br/>
<a id="pl.1.14"></a><var>1.14</var>local funds are to be used, the contribution shall be not less than one-fifth of the sum of:<br/>
<a id="pl.1.15"></a><var>1.15</var>(1) the project costs;<br/>
<a id="pl.1.16"></a><var>1.16</var>(2) acquisition costs of the land and clear zones, which are referred to as acquisition <br/>
<a id="pl.1.17"></a><var>1.17</var>costs.<br/>
<a id="pl.1.18"></a><var>1.18</var>(c) For any airport where federal, state, and local funds are to be used, the <br/>
<a id="pl.1.19"></a><var>1.19</var>contribution shall not be less than five percent of the sum of the project costs and <br/>
<a id="pl.1.20"></a><var>1.20</var>acquisition costs.<br/>
<a id="pl.1.21"></a><var>1.21</var>(d) The commissioner may pay the total cost of radio and navigational aids.<br/>
<a id="pl.1.22"></a><var>1.22</var>(e) Notwithstanding paragraph (b) or (c), the commissioner may pay all of the <br/>
<a id="pl.1.23"></a><var>1.23</var>project costs of a new landing strip, but not an intermediate airport or key airport, or may <br/>
<a id="pl.1.24"></a><var>1.24</var>pay an amount equal to the federal funds granted and used for a new landing strip plus <br/>
<a id="pl.2.1"></a><var>2.1</var>all of the remaining project costs; but the total amount paid by the commissioner for the <br/>
<a id="pl.2.2"></a><var>2.2</var>project costs of a new landing strip, unless specifically authorized by an act appropriating <br/>
<a id="pl.2.3"></a><var>2.3</var>funds for the new landing strip, shall not exceed $200,000.<br/>
<a id="pl.2.4"></a><var>2.4</var>(f) Notwithstanding paragraph (b) or (c), the commissioner may pay all the project <br/>
<a id="pl.2.5"></a><var>2.5</var>costs for research and development projects, including, but not limited to noise abatement; <br/>
<a id="pl.2.6"></a><var>2.6</var>provided that in no event shall the sums expended under this paragraph exceed five <br/>
<a id="pl.2.7"></a><var>2.7</var>percent of the amount appropriated for construction grants.<br/>
<a id="pl.2.8"></a><var>2.8</var>(g) To receive aid under this section for project costs or for acquisition costs, the <br/>
<a id="pl.2.9"></a><var>2.9</var>municipality must enter into an agreement with the commissioner giving assurance that <br/>
<a id="pl.2.10"></a><var>2.10</var>the airport will be operated and maintained in a safe, serviceable manner for aeronautical <br/>
<a id="pl.2.11"></a><var>2.11</var>purposes only for the use and benefit of the public:<br/>
<a id="pl.2.12"></a><var>2.12</var>(1) for 20 years after the date that any state funds for project costs are received <br/>
<a id="pl.2.13"></a><var>2.13</var>by the municipality; and<br/>
<a id="pl.2.14"></a><var>2.14</var>(2) for 99 years after the date that any state funds for acquisition costs are received <br/>
<a id="pl.2.15"></a><var>2.15</var>by the municipality. If any land acquired with state funds ceases to be used for aviation <br/>
<a id="pl.2.16"></a><var>2.16</var>purposes, the municipality shall repay the state airports fund the same percentage of <br/>
<a id="pl.2.17"></a><var>2.17</var>the appraised value of the property as that percentage of the costs of acquisition and <br/>
<a id="pl.2.18"></a><var>2.18</var>participation provided by the state to acquire the land.<br/>
<a id="pl.2.19"></a><var>2.19</var>The agreement may contain other conditions as the commissioner deems reasonable.<br/>
<a id="pl.2.20"></a><var>2.20</var>(h) The commissioner shall establish a hangar construction revolving account, <br/>
<a id="pl.2.21"></a><var>2.21</var>which shall be used for the purpose of financing the construction of hangar buildings to <br/>
<a id="pl.2.22"></a><var>2.22</var>be constructed by municipalities owning airports. All municipalities owning airports are <br/>
<a id="pl.2.23"></a><var>2.23</var>authorized to enter into contracts for the construction of hangars, and contracts with <br/>
<a id="pl.2.24"></a><var>2.24</var>the commissioner for the financing of hangar construction for an amount and period of <br/>
<a id="pl.2.25"></a><var>2.25</var>time as may be determined by the commissioner and municipality. All receipts from the <br/>
<a id="pl.2.26"></a><var>2.26</var>financing contracts shall be deposited in the hangar construction revolving account and <br/>
<a id="pl.2.27"></a><var>2.27</var>are reappropriated for the purpose of financing construction of hangar buildings. The <br/>
<a id="pl.2.28"></a><var>2.28</var>commissioner may pay from the hangar construction revolving account 80 percent of the <br/>
<a id="pl.2.29"></a><var>2.29</var>cost of financing construction of hangar buildings. For purposes of this paragraph, the <br/>
<a id="pl.2.30"></a><var>2.30</var>construction of hangars shall include their design. The commissioner shall transfer up to <br/>
<a id="pl.2.31"></a><var>2.31</var>$4,400,000 from the state airports fund to the hangar construction revolving account.<br/>
<a id="pl.2.32"></a><var>2.32</var>(i) The commissioner may pay a portion of the purchase price of any airport <br/>
<a id="pl.2.33"></a><var>2.33</var>maintenance and safety equipment and of the actual airport snow removal costs incurred <br/>
<a id="pl.2.34"></a><var>2.34</var>by any municipality. The portion to be paid by the state shall not exceed two-thirds of <br/>
<a id="pl.2.35"></a><var>2.35</var>the cost of the purchase price or snow removal. To receive aid a municipality must enter <br/>
<a id="pl.2.36"></a><var>2.36</var>into an agreement of the type referred to in paragraph (g).<br/>
<a id="pl.3.1"></a><var>3.1</var>(j) This subdivision applies only to project costs or acquisition costs of municipally <br/>
<a id="pl.3.2"></a><var>3.2</var>owned airports incurred after June 1, 1971.<br/>
<a id="pl.3.3"></a><var>3.3</var>(k) Notwithstanding paragraph (c), no contribution is required from the state, a <br/>
<a id="pl.3.4"></a><var>3.4</var>political subdivision, municipality, or public corporation for any eligible project elements <br/>
<a id="pl.3.5"></a><var>3.5</var>funded before June 30, 2011, by a federal grant-in-aid through an economic stimulus <br/>
<a id="pl.3.6"></a><var>3.6</var>program.<br/>
<a id="pl.3.7"></a><var>3.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>