Minnesota Legislature
SF 3878
1st Engrossment - 91st Legislature (2019 - 2020) Posted on 03/16/2020 11:20am
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A bill for an act
relating to transportation; providing for deposit of certain revenues and security
for certain federal loans; establishing accounts; appropriating money; amending
Laws 2010, chapter 351, section 69; proposing coding for new law in Minnesota
Statutes, chapter 169.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[169.882] DEPOSIT OF CERTAIN REVENUES; SECURITY FOR LOAN.
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new text begin Subdivision 1. new text end
new text begin Security for federal loan agreement. new text end
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A loan entered into by the
commissioners of transportation and management and budget pursuant to Laws 2010, chapter
351, section 69, and any interest thereon shall be payable solely from and secured by the
revenues transferred to the TIFIA loan fund established for this purpose in subdivision 3
and investment income thereon. The loan is not public debt, and the full faith, credit, and
taxing powers of the state are not pledged for its payment. The loan and the interest thereon
shall not be paid, directly or indirectly, in whole or in part, from a tax of statewide application
on any class of property, income, transaction, or privilege.
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new text begin Subd. 2. new text end
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Nondedicated transportation permit fees defined; fees credited to special
revenue account.
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(a) For the purposes of this section, "nondedicated transportation permit
fees" means fees collected from the permits issued by the commissioner of transportation
under section 169.86, subdivision 5, but does not include the fee described in section 169.86,
subdivision 5, paragraph (i).
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(b) Notwithstanding section 169.86, subdivision 5, during any fiscal year in which a
loan is entered into and remains outstanding under subdivision 1 and Laws 2010, chapter
351, section 69, all nondedicated transportation permit fees must be credited to the
nondedicated permit fees account in the special revenue fund, which is established in the
state treasury.
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(c) Money credited to the nondedicated permit fees account must be transferred to the
TIFIA loan fund established in subdivision 3, at the times and in the amounts determined
by the commissioners of transportation and management and budget to be necessary to
provide for the payment and security of a loan entered into pursuant to Laws 2010, chapter
351, section 69, costs of issuance, refinancing costs, and necessary administrative expenses
associated with the loan.
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(d) Any money in the nondedicated permit fees account not required to be transferred
to the TIFIA loan fund must be annually transferred to the trunk highway fund. If a loan is
not entered into and outstanding under subdivision 1, all nondedicated transportation permit
fees must be credited to the trunk highway fund.
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new text begin Subd. 3. new text end
new text begin TIFIA loan fund established. new text end
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There is established in the state treasury a TIFIA
loan fund. Money in the fund is appropriated to the commissioner of management and
budget to pay the principal and interest on a loan authorized under subdivision 1 and Laws
2010, chapter 351, section 69, costs of issuance, refinancing costs, and necessary
administrative expenses associated with the loan. For purposes of this subdivision, TIFIA
means the Transportation Infrastructure Finance and Innovation Act of 1998, established
in United States Code, title 23, chapter 6.
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new text begin Subd. 4. new text end
new text begin Covenants and agreements. new text end
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(a) The commissioners of transportation and
management and budget may, for and on behalf of the state, enter into such covenants and
agreements not inconsistent with this section as may be necessary or desirable to facilitate
the execution and delivery of a loan agreement authorized under subdivision 1 and Laws
2010, chapter 351, section 69, on terms favorable to the state, including but not limited to
covenants and agreements relating to the payment of and security for the loan agreement
and disclosure of information required by the federal government and federal and state
securities laws.
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(b) Such covenants and agreements of the commissioners of transportation and
management and budget constitute an enforceable contract of the state, and the state shall
pledge and agree with the holders of any loan agreement that the state will not limit or alter
the rights vested in the commissioners of transportation and management and budget to
fulfill the terms of any such covenants or agreements made with the holders of the loan
agreement or in any way impair the rights and remedies of the holders until the loan
agreement, together with the interest thereon, with interest on any unpaid installments of
interest, and all costs and expenses in connection with any action or proceeding by or on
behalf of such holders, are fully met and discharged.
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(c) The commissioners of transportation and management and budget are authorized to
include this pledge and agreement of the state in any covenant or agreement with the holders
of such loan agreement.
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(d) Such covenants may also include covenants to seek increased nondedicated
transportation permit fees so long as any loan agreement issued pursuant to this section is
outstanding.
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(e) A loan entered into pursuant to Laws 2010, chapter 351, section 69, shall be treated
like certificates of indebtedness under sections 16A.672 to 16A.675.
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new text begin Subd. 5. new text end
new text begin Applicability. new text end
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Subdivision 2 does not apply to any permit described in section
169.86, subdivision 5, that is determined by the attorney general or a court of competent
jurisdiction to be a tax.
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new text begin Subd. 6. new text end
new text begin Waiver of immunity. new text end
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The waiver of immunity by the state provided for by
section 3.751, subdivision 1, applies to the loan, any certificates of indebtedness, and any
ancillary contracts to which the commissioners of transportation and management and
budget are parties under this section.
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new text begin EFFECTIVE DATE. new text end
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This section is effective the day following final enactment.
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Sec. 2.
Laws 2010, chapter 351, section 69, is amended to read:
Sec. 69. TIFIA PILOT PROGRAM.
(a) The commissioner of transportation may conduct a pilot program to apply for and
receive financial assistance under the Transportation Infrastructure Finance and Innovation
Act of 1998 (TIFIA), United States Code, title 23, chapter 6, or through other federal
transportation loan, grant, or credit assistance programs. The assistance may include but is
not limited to loans, loan guarantees, and lines of credit. The commissioner may enter into
agreements to repay the financial assistance subject to the availability of state money or
other dedicated revenue or resources, with the approval of deleted text begin Minnesotadeleted text end new text begin the commissioner of
new text end management and budget.
(b) The pilot program under this section is available for deleted text begin one transportation project
identified by the commissionerdeleted text end new text begin a project in Nicollet County to expand a trunk highway from
two lanes to four lanes and that was the subject of an Infrastructure for Rebuilding America
(INFRA) grant application submitted by the commissioner of transportation to the United
States Department of Transportation on February 24, 2020new text end .
(c) Upon completion of the transportation project under the pilot program, the
commissioner shall submit a report on the pilot program to the chairs and ranking minority
members of the house of representatives and senate committees having jurisdiction over
transportation policy and finance. At a minimum, the report must: describe the transportation
project undertaken and each financing mechanism utilized; analyze the effectiveness of
each financing mechanism; evaluate the costs, risks, and benefits of additional participation
in federal financial assistance programs; and provide any recommendations for related
legislative changes. The report may be submitted electronically, and is subject to Minnesota
Statutes, section 3.195, subdivision 1.
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(d) An amount sufficient to repay the financial assistance as specified in paragraph (a)
is annually appropriated from the TIFIA loan fund created in Minnesota Statutes, section
169.882.
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new text begin EFFECTIVE DATE. new text end
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This section is effective the day following final enactment.
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