SF 3357

as introduced - 89th Legislature (2015 - 2016) Posted on 03/31/2016 09:18am

A bill for an act
relating to transportation; capital investment; providing for grants for freight
railroad preservation and improvement; authorizing the sale and issuance of
state bonds; appropriating money; amending Minnesota Statutes 2014, section
222.50, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2014, section 222.50, is amended by adding a
subdivision to read:

new text begin Subd. 6a. new text end

new text begin Grants; freight railroad preservation and improvement. new text end

new text begin (a) The
commissioner may make grants for freight railroad preservation and improvement as
provided in this subdivision and for the purposes specified in subdivision 7.
new text end

new text begin (b) Eligible recipients of grant funds under this subdivision consist of: railroad
companies that are classified by federal law or regulation as Class II Railroads, Class II Rail
Carriers, Class III Railroads, or Class III Carriers; rail users; and local units of government.
An eligible recipient may receive funds regardless of ownership of rail facilities.
new text end

new text begin (c) When awarding grants, the commissioner must prioritize projects:
new text end

new text begin (1) identified under subdivision 7, paragraph (a), clauses (2) and (3);
new text end

new text begin (2) on segments experiencing low rail service use; and
new text end

new text begin (3) with applicants who commit more than 20 percent of total project cost from
nonstate and nonfederal sources.
new text end

new text begin (d) A grant under this subdivision may not exceed 80 percent of the total project cost.
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 FREIGHT RAILROAD PRESERVATION AND IMPROVEMENT;
APPROPRIATION AND BOND SALE AUTHORIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $4,500,000 is appropriated from the bond
proceeds fund to the commissioner of transportation for freight railroad preservation and
improvement grants under Minnesota Statutes, section 222.50, subdivision 6a.
new text end

new text begin Subd. 2. new text end

new text begin Bond sale. new text end

new text begin To provide the money appropriated in this section from the
bond proceeds fund, the commissioner of management and budget shall sell and issue
bonds of the state in an amount up to $4,500,000 in the manner, upon the terms, and with
the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
Minnesota Constitution, article XI, sections 4 to 7.
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