SF 3878

2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 10/06/2020 11:00am

A bill for an act
relating to transportation; providing for deposit of certain revenues and security
for certain federal loans; establishing an account; appropriating money; amending
Minnesota Statutes 2019 Supplement, section 169.86, subdivision 5; proposing
coding for new law in Minnesota Statutes, chapter 174; repealing Laws 2010,
chapter 351, section 69.

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

Section 1.

Minnesota Statutes 2019 Supplement, section 169.86, subdivision 5, is amended
to read:

Subd. 5.

Fees; proceeds deposited; appropriation.

The commissioner, with respect to
highways under the commissioner's jurisdiction, may charge a fee for each permit issued.
The fee for an annual permit that expires by law on the date of the vehicle registration
expiration must be based on the proportion of the year that remains until the expiration date.
deleted text begin Unless otherwise specified, deleted text end All fees for permits issued by the commissioner of transportation
must be deposited deleted text begin in the state treasury and credited to the trunk highway fund deleted text end new text begin as provided
in paragraph (i) and in section 174.525 new text end . Except for those annual permits for which the permit
fees are specified elsewhere in this chapter, the fees are:

(a) $15 for each single trip permit.

(b) $36 for each job permit. A job permit may be issued for like loads carried on a specific
route for a period not to exceed two months. "Like loads" means loads of the same product,
weight, and dimension.

(c) $60 for an annual permit to be issued for a period not to exceed 12 consecutive
months. Annual permits may be issued for:

(1) motor vehicles used to alleviate a temporary crisis adversely affecting the safety or
well-being of the public;

(2) motor vehicles that travel on interstate highways and carry loads authorized under
subdivision 1a;

(3) motor vehicles operating with gross weights authorized under section 169.826,
subdivision 1a;

(4) special pulpwood vehicles described in section 169.863;

(5) motor vehicles bearing snowplow blades not exceeding ten feet in width;

(6) noncommercial transportation of a boat by the owner or user of the boat; and

(7) motor vehicles carrying bales of agricultural products authorized under section
169.862.

(d) $120 for an oversize annual permit to be issued for a period not to exceed 12
consecutive months. Annual permits may be issued for:

(1) mobile cranes;

(2) construction equipment, machinery, and supplies;

(3) manufactured homes and manufactured storage buildings;

(4) implements of husbandry;

(5) double-deck buses;

(6) commercial boat hauling and transporting waterfront structures, including, but not
limited to, portable boat docks and boat lifts; and

(7) three-vehicle combinations consisting of two empty, newly manufactured trailers
for cargo, horses, or livestock, not to exceed 28-1/2 feet per trailer; provided, however, the
permit allows the vehicles to be moved from a trailer manufacturer to a trailer dealer only
while operating on twin-trailer routes designated under section 169.81, subdivision 3,
paragraph (c).

(e) For vehicles that have axle weights exceeding the weight limitations of sections
169.823 to 169.829, an additional cost added to the fees listed above. However, this paragraph
applies to any vehicle described in section 168.013, subdivision 3, paragraph (b), but only
when the vehicle exceeds its gross weight allowance set forth in that paragraph, and then
the additional cost is for all weight, including the allowance weight, in excess of the permitted
maximum axle weight. The additional cost is equal to the product of the distance traveled
times the sum of the overweight axle group cost factors shown in the following chart:

	Overweight Axle Group Cost Factors
Weight (pounds)		Cost Per Mile For Each Group Of:
exceeding weight limitations on axles		Two consecutive axles spaced within 8 feet or less		Three consecutive axles spaced within 9 feet or less		Four consecutive axles spaced within 14 feet or less
0-2,000		.12		.05		.04
2,001-4,000		.14		.06		.05
4,001-6,000		.18		.07		.06
6,001-8,000		.21		.09		.07
8,001-10,000		.26		.10		.08
10,001-12,000		.30		.12		.09
12,001-14,000		Not permitted		.14		.11
14,001-16,000		Not permitted		.17		.12
16,001-18,000		Not permitted		.19		.15
18,001-20,000		Not permitted		Not permitted		.16
20,001-22,000		Not permitted		Not permitted		.20

The amounts added are rounded to the nearest cent for each axle or axle group. The additional
cost does not apply to paragraph (c), clauses (1) and (3).

For a vehicle found to exceed the appropriate maximum permitted weight, a cost-per-mile
fee of 22 cents per ton, or fraction of a ton, over the permitted maximum weight is imposed
in addition to the normal permit fee. Miles must be calculated based on the distance already
traveled in the state plus the distance from the point of detection to a transportation loading
site or unloading site within the state or to the point of exit from the state.

(f) As an alternative to paragraph (e), an annual permit may be issued for overweight,
or oversize and overweight, mobile cranes; construction equipment, machinery, and supplies;
implements of husbandry; and commercial boat hauling. The fees for the permit are as
follows:

Gross Weight (pounds) of Vehicle		Annual Permit Fee
90,000	or less	$200
90,001	- 100,000	$300
100,001	- 110,000	$400
110,001	- 120,000	$500
120,001	- 130,000	$600
130,001	- 140,000	$700
140,001	- 145,000	$800
145,001	- 155,000	$900

If the gross weight of the vehicle is more than 155,000 pounds the permit fee is determined
under paragraph (e).

(g) For vehicles which exceed the width limitations set forth in section 169.80 by more
than 72 inches, an additional cost equal to $120 added to the amount in paragraph (a) when
the permit is issued while seasonal load restrictions pursuant to section 169.87 are in effect.

(h) $85 for an annual permit to be issued for a period not to exceed 12 months, for
refuse-compactor vehicles that carry a gross weight of not more than: 22,000 pounds on a
single rear axle; 38,000 pounds on a tandem rear axle; or, subject to section 169.828,
subdivision 2, 46,000 pounds on a tridem rear axle. A permit issued for up to 46,000 pounds
on a tridem rear axle must limit the gross vehicle weight to not more than 62,000 pounds.

(i) $300 for a motor vehicle described in section 169.8261. The fee under this paragraph
must be deposited as follows:

(1) the first $50,000 in each fiscal year must be deposited in the trunk highway fund for
costs related to administering the permit program and inspecting and posting bridges; and

(2) all remaining money in each fiscal year must be deposited in the bridge inspection
and signing account as provided under subdivision 5b.

(j) Beginning August 1, 2006, $200 for an annual permit for a vehicle operating under
authority of section 169.824, subdivision 2, clause (2).

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 [174.525] TRANSPORTATION LOAN PILOT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Pilot program authorized. new text end

new text begin (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.
new text end

new text begin (b) The commissioner may enter into agreements to repay the financial assistance as
provided in this section, with the approval of the commissioner of management and budget.
new text end

new text begin (c) The pilot program under this section is available for 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, 2020.
new text end

new text begin Subd. 2. new text end

new text begin Security for federal loan agreement. new text end

new text begin A loan entered into by the commissioners
of transportation and management and budget pursuant to subdivision 1 and any interest
thereon shall be payable solely from and secured by the revenues appropriated and transferred
to the federal transportation loan account established for this purpose in subdivision 4 and
investment income thereon and any reserve established for the loan. 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.
new text end

new text begin Subd. 3. new text end

new text begin Deposit of revenue. new text end

new text begin (a) During any fiscal year in which a loan under this section
is being applied for or is entered into and remains outstanding, the commissioner of
transportation must deposit all fees collected from the permits issued under section 169.86,
subdivision 5, excluding the fee under section 169.86, subdivision 5, paragraph (i), into the
federal transportation loan account under subdivision 4.
new text end

new text begin (b) During any fiscal year in which paragraph (a) does not apply, the commissioner of
transportation must deposit all fees collected from the permits issued under section 169.86,
subdivision 5, into the trunk highway fund.
new text end

new text begin Subd. 4. new text end

new text begin Federal transportation loan account. new text end

new text begin (a) A federal transportation loan account
is established in the special revenue fund. The account consists of revenue as provided in
subdivision 3, and any other money donated, allotted, transferred, or otherwise provided to
the account. The account is administered by the commissioner of management and budget.
new text end

new text begin (b) Money in the federal transportation loan account, including any investment income,
is irrevocably appropriated to the commissioner of management and budget for the payment
of the principal and interest on a loan authorized under this section when due, costs of
issuance, any reserve, refinancing costs, and necessary administrative expenses associated
with the loan. The commissioner of management and budget must consult with the
commissioner of transportation regarding expenditures under this paragraph.
new text end

new text begin (c) In each fiscal year, the commissioner of management and budget must transfer money
in the federal transportation loan account to the trunk highway fund if the commissioners
of transportation and management and budget determine that the money is not necessary
for the purposes specified in paragraph (b).
new text end

new text begin Subd. 5. new text end

new text begin Covenants and agreements. new text end

new text begin (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, 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.
new text end

new text begin (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. 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.
new text end

new text begin (c) Such covenants may also include covenants to seek increased fees under section
169.86, subdivision 5, so long as any loan agreement issued pursuant to this section is
outstanding.
new text end

new text begin (d) A loan entered into pursuant to this section must be treated like certificates of
indebtedness under sections 16A.672 and 16A.675.
new text end

new text begin Subd. 6. new text end

new text begin Applicability. new text end

new text begin Subdivision 3 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, provided that nothing in section 645.44, subdivision 19, prevents a
deposit under subdivision 3.
new text end

new text begin Subd. 7. new text end

new text begin Waiver of immunity. new text end

new text begin 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.
new text end

new text begin Subd. 8. new text end

new text begin Reports. new text end

new text begin (a) Upon completion of the transportation project under the pilot
program, the commissioner of transportation must submit a report on the pilot program to
the chairs and ranking minority members of the legislative 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.
new text end

new text begin (b) Annually by December 1, the commissioners of transportation and management and
budget must submit a report on the loan entered into pursuant to this section to the chairs
and ranking minority members of the legislative committees having jurisdiction over
transportation policy and finance. The report must include the following information for
the previous fiscal year:
new text end

new text begin (1) the amount of funds deposited into the federal transportation loan account and the
source of the funds;
new text end

new text begin (2) the amount of funds transferred to the trunk highway fund and the date of the transfer;
new text end

new text begin (3) the amount in the account at the close of the most recent fiscal year;
new text end

new text begin (4) the amount and timing of payments made on the loan entered into pursuant to this
section; and
new text end

new text begin (5) the amount held in reserve in the account.
new text end

new text begin The report must also include a recommendation of the necessary reserve amount for the
current fiscal year and for the next fiscal year. A report is only required under this paragraph
if a loan entered into pursuant to this section was outstanding in the previous fiscal year.
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 REPEALER.
new text end

new text begin Laws 2010, chapter 351, section 69, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Session Laws: S3878-2

Laws 2010, chapter 351, section 69 by Laws 2020, chapter 69, section 3

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 Minnesota Management and Budget.

(b) The pilot program under this section is available for one transportation project identified by the commissioner.

(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.

EFFECTIVE DATE.

This section is effective the day following final enactment.