SF 254

as introduced - 90th Legislature (2017 - 2018) Posted on 01/24/2017 08:16am

A bill for an act
relating to transportation; passenger rail; restricting expenditures and other powers
related to certain rail projects; requiring insurance for certain projects; proposing
coding for new law in Minnesota Statutes, chapters 16A; 16B; 117; 222; 459; 473.

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

Section 1.

new text begin [16A.1246] NO SPENDING FOR CERTAIN RAIL PROJECTS.
new text end

new text begin (a) Except as provided in paragraph (b), no appropriation or other state money, whether
in the general or another fund, must be expended or used for any costs related to studying
the feasibility of, planning for, designing, engineering, acquiring property or constructing
facilities for or related to, or development or operation of intercity or interregional passenger
rail facilities or operations between the city of Rochester or locations in its metropolitan
area and any location in the metropolitan area, as defined in section 473.121, subdivision
2.
new text end

new text begin (b) The restrictions under this section do not apply to funds obtained from contributions,
grants, or other voluntary payments made by nongovernmental entities from private sources.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [16B.2965] PROPERTY LEASED FOR RAIL PROJECTS.
new text end

new text begin (a) If a state official leases, loans, or otherwise makes available state lands, air rights,
or any other state property for use in connection with passenger rail facilities, as described
in section 16A.1246, the lease or other agreement must include or be secured by a security
bond or equivalent guarantee that allows the state to recover any costs it incurs in connection
with the rail project from a responsible third party or secure source of capital, if the passenger
rail facilities are not constructed, do not go into operation, or are abandoned, whether or
not the facilities began operations. The security bond or equivalent guarantee must remain
in place for the term of lease, loan, or other agreement that makes state property available
for use by the project. These costs include restoring state property to its original condition.
new text end

new text begin (b) For purposes of this section, "state official" includes the commissioner, the
commissioner of transportation, or any other state official with authority to enter a lease or
other agreement providing for use by a nonstate entity of state property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

new text begin [117.028] CONDEMNATION FOR CERTAIN RAIL FACILITIES
PROHIBITED.
new text end

new text begin Notwithstanding section 222.27 or any other law to the contrary, no condemning authority
may take property for the development or construction of or for facilities related to intercity
or interregional passenger rail facilities or operations between the city of Rochester or
locations in its metropolitan area and any location in the metropolitan area, as defined in
section 473.121, subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

new text begin [222.271] PASSENGER RAIL PROJECTS; ENVIRONMENTAL
INSURANCE REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin (a) This section applies to any person that seeks a federal or state
permit or other formal legal authorization to construct or operate a passenger rail project
with an estimated capital cost exceeding $1,000,000,000.
new text end

new text begin (b) This section does not apply to a person whose only action within the scope of
paragraph (a) is an application for a building permit.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, unless the context clearly indicates
otherwise, the following definitions apply.
new text end

new text begin (b) "Commissioner" means the commissioner of the Pollution Control Agency.
new text end

new text begin (c) "Insurance" means a commercial insurance policy, a security bond, or an equivalent
guarantee that provides assurance of the project's ability to pay claims for any liability under
chapter 115B or similar provisions of common law or federal law resulting from construction
or operation of the passenger rail project.
new text end

new text begin (d) "Passenger rail project" or "project" means a railroad or a line or lines of a railway
located within or partly within Minnesota intended to provide passenger service, regardless
of whether freight service is also provided, by a common carrier other than a federal or state
government unit, a political subdivision of the state, or the National Railroad Passenger
Corporation created under the Rail Passenger Service Act of 1970, Public Law 91-518.
new text end

new text begin (e) "Person" includes a corporation, limited liability company, partnership, other entity,
or an individual.
new text end

new text begin Subd. 3. new text end

new text begin Environmental insurance required. new text end

new text begin (a) Any person subject to this section
must obtain and maintain insurance that is adequate to cover potential claims and meets the
other requirements of this section, as approved by the commissioner under paragraph (b).
The insurance must not contain dollar limits on liability, or if it does contain a dollar limit
the limit must be not less than a reasonable estimate of the potential exposure of the project
for environmental remediation or impairment damages. Any dollar limit must be adjusted
if the scope, size, or cost of the project increases materially. The insurance must cover any
liability incurred during and after the construction and operation of the project and must
not contain exclusions, limitations, or other restrictions that are not standard in comprehensive
environmental remediation insurance or in environmental impairment insurance, as
applicable.
new text end

new text begin (b) In order to satisfy the requirements of this section, the commissioner must determine
that the insurance is adequate and that it meets the other requirements of this section. The
commissioner may require that the project provide any supporting documentation to
determine that insurance is adequate and meets the other requirements of this section and
that the project has the financial ability to maintain insurance during the project's operations.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for passenger rail projects for which
application for a permit or other formal legal authorization to construct is made after the
day following final enactment.
new text end

Sec. 5.

new text begin [459.36] NO SPENDING OF PUBLIC MONEY FOR CERTAIN RAIL
PROJECTS.
new text end

new text begin (a) Except as provided in paragraph (b), no city, county, special taxing district, destination
medical center entity, or a metropolitan planning organization must spend or use any money
for any costs related to studying the feasibility of, planning for, designing, engineering,
acquiring property or constructing facilities for or related to, or development or operation
of intercity or interregional passenger rail facilities or operations between the city of
Rochester, or locations in its metropolitan area, and any location in the metropolitan area,
as defined in section 473.121, subdivision 2. The provisions of this section apply to the
statutory and home rule charter cities, special taxing districts, and counties located in
development regions 10 and 11, as designated under section 462.385, subdivision 1.
Destination medical center entity includes the Destination Medical Center Corporation and
agency as those terms are defined in section 469.40, and any successor or related entity.
Special taxing district has the meaning given in section 275.066.
new text end

new text begin (b) The restrictions under this section do not apply to:
new text end

new text begin (1) funds the city or county obtains from contributions, grants, or other voluntary
payments made by nongovernmental entities from private sources; and
new text end

new text begin (2) expenditures for costs of public infrastructure, including public utilities, parking
facilities, a multimode transit hub, or similar projects located within the area of the
development district, as defined under section 469.40, and reflected in the development
plan adopted before the enactment of this section, that are intended to serve, and that are
made following the completed construction and commencement of operation of privately
financed and operated intercity or interregional passenger rail facilities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment without
local approval under Minnesota Statutes, section 645.023, subdivision 1, clause (c).
new text end

Sec. 6.

new text begin [473.1467] NO SPENDING FOR CERTAIN RAIL PROJECTS.
new text end

new text begin (a) Except as provided in paragraph (b), the council must not spend or use any money
for any costs related to studying the feasibility of, planning for, designing, engineering,
acquiring property or constructing facilities for or related to, or development or operation
of intercity or interregional passenger rail facilities or operations between the city of
Rochester or locations in its metropolitan area and any location in the metropolitan area, as
defined in section 473.121, subdivision 2.
new text end

new text begin (b) The restrictions under this section do not apply to funds the council obtains from
contributions, grants, or other voluntary payments made by nongovernmental entities from
private sources.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
and Washington.
new text end