1.1A bill for an act1.2relating to airports; eliminating requirement of local match for federal stimulus 1.3grants for airport project costs; amending Minnesota Statutes 2008, section 1.4360.305, subdivision 4.1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.6    Section 1. Minnesota Statutes 2008, section 360.305, subdivision 4, is amended to read:1.7    Subd. 4. Costs allocated; local contribution; hangar construction account. (a) 1.8Except as otherwise provided in this subdivision, the commissioner of transportation shall 1.9require as a condition of assistance by the state that the political subdivision, municipality, 1.10or public corporation make a substantial contribution to the cost of the construction, 1.11improvement, maintenance, or operation of the airport, in connection with which the 1.12assistance of the state is sought. These costs are referred to as project costs.1.13(b) For any airport, whether key, intermediate, or landing strip, where only state and 1.14local funds are to be used, the contribution shall be not less than one-fifth of the sum of:1.15(1) the project costs;1.16(2) acquisition costs of the land and clear zones, which are referred to as acquisition 1.17costs.1.18(c) For any airport where federal, state, and local funds are to be used, the 1.19contribution shall not be less than five percent of the sum of the project costs and 1.20acquisition costs.1.21(d) The commissioner may pay the total cost of radio and navigational aids.1.22(e) Notwithstanding paragraph (b) or (c), the commissioner may pay all of the 1.23project costs of a new landing strip, but not an intermediate airport or key airport, or may 1.24pay an amount equal to the federal funds granted and used for a new landing strip plus 2.1all of the remaining project costs; but the total amount paid by the commissioner for the 2.2project costs of a new landing strip, unless specifically authorized by an act appropriating 2.3funds for the new landing strip, shall not exceed $200,000.2.4(f) Notwithstanding paragraph (b) or (c), the commissioner may pay all the project 2.5costs for research and development projects, including, but not limited to noise abatement; 2.6provided that in no event shall the sums expended under this paragraph exceed five 2.7percent of the amount appropriated for construction grants.2.8(g) To receive aid under this section for project costs or for acquisition costs, the 2.9municipality must enter into an agreement with the commissioner giving assurance that 2.10the airport will be operated and maintained in a safe, serviceable manner for aeronautical 2.11purposes only for the use and benefit of the public:2.12(1) for 20 years after the date that any state funds for project costs are received 2.13by the municipality; and2.14(2) for 99 years after the date that any state funds for acquisition costs are received 2.15by the municipality. If any land acquired with state funds ceases to be used for aviation 2.16purposes, the municipality shall repay the state airports fund the same percentage of 2.17the appraised value of the property as that percentage of the costs of acquisition and 2.18participation provided by the state to acquire the land.2.19The agreement may contain other conditions as the commissioner deems reasonable.2.20(h) The commissioner shall establish a hangar construction revolving account, 2.21which shall be used for the purpose of financing the construction of hangar buildings to 2.22be constructed by municipalities owning airports. All municipalities owning airports are 2.23authorized to enter into contracts for the construction of hangars, and contracts with 2.24the commissioner for the financing of hangar construction for an amount and period of 2.25time as may be determined by the commissioner and municipality. All receipts from the 2.26financing contracts shall be deposited in the hangar construction revolving account and 2.27are reappropriated for the purpose of financing construction of hangar buildings. The 2.28commissioner may pay from the hangar construction revolving account 80 percent of the 2.29cost of financing construction of hangar buildings. For purposes of this paragraph, the 2.30construction of hangars shall include their design. The commissioner shall transfer up to 2.31$4,400,000 from the state airports fund to the hangar construction revolving account.2.32(i) The commissioner may pay a portion of the purchase price of any airport 2.33maintenance and safety equipment and of the actual airport snow removal costs incurred 2.34by any municipality. The portion to be paid by the state shall not exceed two-thirds of 2.35the cost of the purchase price or snow removal. To receive aid a municipality must enter 2.36into an agreement of the type referred to in paragraph (g).3.1(j) This subdivision applies only to project costs or acquisition costs of municipally 3.2owned airports incurred after June 1, 1971.3.3(k) Notwithstanding paragraph (c), no contribution is required from the state, a 3.4political subdivision, municipality, or public corporation for any eligible project elements 3.5funded before June 30, 2011, by a federal grant-in-aid through an economic stimulus 3.6program.3.7EFFECTIVE DATE.This section is effective the day following final enactment.