HF 619

as introduced - 85th Legislature (2007 - 2008) 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 free from any reserve requirements.
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, 2007, and applies to projects upon which work begins
on or after that date.
new text end