HF 320

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to transportation; providing for funding of
transportation with transportation certificates of
assignment; proposing coding for new law in Minnesota
Statutes, chapter 161.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [161.075] USE OF TRANSPORTATION CERTIFICATES.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin The commissioner must fund
all state highway and transit infrastructure projects with
transportation certificates, as provided in this section.
new text end

new text begin Subd. 2. new text end

new text begin Use and form of certificates. new text end

new text begin Each
transportation certificate issued must bear the state project
number to be funded through the certificate. The transportation
certificate must assign the equity rights of the project to a
state-chartered bank determined under subdivision 3. The
certificate must reserve the user rights for the state. The
certificate must be signed by the commissioner of transportation.
new text end

new text begin Subd. 3. new text end

new text begin Acceptance and monetization by state-chartered
banks. new text end

new text begin (a) The transportation certificates must be assigned to
and be accepted by all state-chartered banks in an alphabetical
order by name.
new text end

new text begin (b) Each state-chartered bank, using its accepted abilities
to monetize assets and create money in book-entry form, shall
establish an asset monetization "pass-through" account and shall
deposit the certificate's stated value into that account, as an
asset to the bank, thereby monetizing the bid value of the
project.
new text end

new text begin (c) Each bank, after monetizing the bid value of the
project as an asset free of debt, shall debit the money out of
the bank's asset monetization "pass-through" account and shall
credit the money to the state's transportation account
electronically.
new text end

new text begin (d) The state shall then debit the money out of its
transportation account and credit the money to the contractor's
bank account according to the terms of the contract with the
contractor.
new text end

new text begin Subd. 4. new text end

new text begin Direction to auditors. new text end

new text begin Auditors of state banks
shall deem the transportation certificates to be assets of the
bank and shall not deem them or the money created by them to be
liabilities of the bank or of the state.
new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective July 1, 2005, and applies to
projects upon which work begins on or after that date.
new text end