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Key: (1) language to be deleted (2) new language

    Laws of Minnesota 1993 

                        CHAPTER 211-S.F.No. 1184 
           An act relating to transportation; authorizing road 
          authorities to develop, finance, design, construct, 
          improve, rehabilitate, own, and operate toll 
          facilities and to enter into agreements with private 
          operators for the construction, maintenance, and 
          operation of toll facilities; proposing coding for new 
          law in Minnesota Statutes, chapter 160. 
    Section 1.  [160.84] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] The terms used in sections 160.84 
to 160.92 have the meanings given them in this section and 
section 160.02. 
    Subd. 2.  [BOT FACILITY.] "BOT facility" means a 
build-operate-transfer toll facility developed, financed, 
designed, constructed, improved, rehabilitated, and operated by 
a private operator who holds title to the facility subject to a 
development agreement providing that title will be transferred 
to the road authority on expiration of an agreed term. 
    Subd. 3.  [BTO FACILITY.] "BTO facility" means a 
build-transfer-operate toll facility developed, financed, 
designed, constructed, improved, or rehabilitated by a private 
operator who:  (1) transfers any interest it may have in the 
toll facility to the road authority before operation begins; and 
(2) operates the toll facility for an agreed term under a lease, 
management, or toll concession agreement. 
    Subd. 4.  [COMMISSIONER.] "Commissioner" means the 
commissioner of the Minnesota department of transportation. 
    Subd. 5.  [DEVELOPMENT AGREEMENT.] "Development agreement" 
means a written agreement between a road authority and a private 
operator that provides for the development, financing, design, 
construction, improvement, rehabilitation, ownership, and 
operation of a toll facility. 
     Subd. 6.  [METROPOLITAN AREA.] "Metropolitan area" has the 
meaning given it in section 473.121, subdivision 2. 
    Subd. 7.  [PRIVATE OPERATOR.] "Private operator" means an 
individual, corporation, partnership, cooperative or 
unincorporated association, joint venture, or consortium that 
develops, finances, designs, constructs, improves, 
rehabilitates, owns, or operates a toll facility subject to 
sections 160.84 to 160.92. 
    Subd. 8.  [ROAD AUTHORITY.] "Road authority" has the 
meaning given it in section 160.02, subdivision 9, and also 
refers to a joint powers authority formed under section 160.91. 
    Subd. 9.  [TOLL FACILITY.] "Toll facility" means a bridge, 
causeway, or tunnel, and its approaches; a road, street, or 
highway; an appurtenant building, structure, or other 
improvement; land lying within applicable rights-of-way; and 
other appurtenant rights or hereditaments that together comprise 
a project for which a road authority or private operator is 
authorized to develop, finance, design, operate, and impose 
tolls under sections 160.84 to 160.92. 
    Sec. 2.  [160.85] [AUTHORITY.] 
    Subdivision 1.  [ROAD AUTHORITY.] A road authority may 
solicit or accept proposals from and enter into development 
agreements with private operators for developing, financing, 
designing, constructing, improving, rehabilitating, owning, and 
operating toll facilities wholly or partly within the road 
authority's jurisdiction.  If a road authority solicits toll 
facility proposals, it must publish a notice of solicitation in 
the State Register. 
    Subd. 2.  [PRIVATE OPERATORS.] Private operators are 
authorized to develop, finance, design, construct, improve, 
rehabilitate, own, and operate toll facilities subject to the 
terms of sections 160.84 to 160.92.  Private operators may 
mortgage, grant security interests in, and pledge their 
interests in:  (1) toll facilities and their components; (2) 
development, lease, management, toll concessions, and other 
related agreements; and (3) income, profits, and proceeds of the 
toll facility. 
    Subd. 3.  [APPROVAL.] No road authority and private 
operator may execute a development agreement without the 
approval of the final agreement by the commissioner.  A road 
authority and private operator in the metropolitan area must 
obtain the approvals required in sections 161.171 to 161.177 and 
473.167, subdivision 1.  The governing body of a county or 
municipality through which a facility passes may veto the 
project within 30 days of approval by the commissioner. 
    Subd. 4.  [DEVELOPMENT AGREEMENT.] (a) A development 
agreement for toll facilities may provide for any mode of 
ownership or operation approved by the road authority, including 
ownership by the private operator with or without reversion of 
title, operation of the facilities under leases or management 
contracts, toll concessions, or BOT or BTO facilities. 
    (b) A development agreement may permit the private operator 
to assemble funds from any available source and to incorporate 
an existing road or highway, bridge, and approach structures, 
and related improvements, into the toll facility.  The agreement 
must provide the terms and conditions of the incorporation. 
    (c) A development agreement may include grants of title, 
easements, rights-of-way, and leasehold estates necessary to the 
toll facility. 
    (d) A development agreement may authorize the private 
operator to charge variable rate tolls based on time of day, 
vehicle characteristics, or other factors approved by the road 
     (e) A development agreement may provide for maintenance, 
snow removal, and police standards that exceed the standards of 
the road authority for facilities of the same functional 
    (f) A development agreement may include authorization by 
the road authority to the private operator to exercise powers 
possessed by the road authority for similar facilities. 
    Subd. 5.  [RIGHT-OF-WAY ACQUISITION.] A private operator 
may acquire right-of-way by donation, lease, or purchase.  A 
road authority may acquire right-of-way by eminent domain and 
may donate, sell, or lease a right-of-way to a private operator. 
    Subd. 6.  [RESTRICTION.] No toll facility may be used for 
any purpose other than the purposes specified in the development 
agreement for the term of the agreement. 
development agreement that requires transfer or reversion of a 
toll facility to a road authority must provide the terms and 
conditions of the transfer or reversion.  The facility shall 
meet at least the maintenance standards of the road authority 
for facilities of the same functional classification during the 
term of the agreement. 
    Subd. 8.  [APPLICATION OF OTHER LAW.] A private operator 
must have environmental, navigational, design, or safety 
approvals as if the toll facility were constructed or operated 
by a road authority. 
    A development agreement must include the following 
    (a) The toll facility must meet the road authority's 
standards of design and construction for roads and bridges of 
the same functional classification. 
    (b) The commissioner must review and approve the location 
and design of a bridge over navigable waters as if the bridge 
were constructed by a road authority.  This requirement does not 
diminish the private operator's responsibility for bridge safety.
    (c) The private operator shall manage and operate the toll 
facility in cooperation with the road authority and subject to 
the development agreement. 
    (d) The toll facility is subject to regular inspections by 
the road authority and the commissioner. 
    (e) The agreement must provide the terms and conditions of 
maintenance, snow removal, and police services to the toll 
facility.  The road authority must provide the services.  The 
services must meet at least the road authority's standards for 
facilities of the same functional classification. 
     (f) The agreement must establish a reasonable rate of 
return on investment and capital during the term of the 
    Sec. 4.  [160.87] [COST RECOVERY.] 
    Subdivision 1.  [USE OF TOLL REVENUES.] Toll revenues must 
be applied to repayment of indebtedness incurred for the toll 
facility; payments to a road authority under the development 
agreement or a related lease, management, or toll concession 
agreement; costs of operation necessary to meet applicable 
standards of the road authority; and reasonable reserves for 
future capital outlays.  The enumeration of uses in this 
subdivision does not state priorities for the use of these 
    Subd. 2.  [RESIDUAL TOLL REVENUES.] Residual toll revenues 
after the payments specified in subdivision 1 are made belong to 
the private operator.  
    Subd. 3.  [CONTINUATION OF TOLLS.] After expiration of a 
lease for a BTO facility, or after title has reverted for a BOT 
facility, the road authority may continue to charge tolls for 
the facility. 
     Sec. 5.  [160.88] [PUBLIC TOLL FACILITIES.] 
     A road authority may develop, finance, design, construct, 
improve, rehabilitate, own, and operate a toll facility. 
     Sec. 6.  [160.89] [REVENUE BONDS.] 
     To provide money to acquire, develop, finance, design, 
construct, improve, rehabilitate, and operate a toll facility 
and to establish a reserve for bonds issued under this section, 
the commissioner of finance, or a road authority by resolution 
of its governing body, may authorize, issue, and sell revenue 
bonds payable solely from all or a portion of the revenues 
derived from a toll facility, including any payments agreed to 
be made by a private operator.  The bonds may be additionally 
secured by a mortgage of all or any portion of a toll facility 
or other property of the private operator.  The bonds shall 
mature, bear the date or dates, bear interest at the rate or 
rates, be in denomination or denominations, be executed in the 
manner, be payable in such manner and be subject to redemption, 
with or without premium as may be provided by the resolution 
authorizing their issuance or any trust indenture approved by 
the governing body of the road authority.  The bonds may be sold 
at private sale at the price approved pursuant to the 
authorizing resolution.  The bonds must contain a recital that 
they are issued in aid of a toll facility under this section and 
the recital is conclusive evidence of the validity and 
enforceability of the bonds and the security for the bonds.  
Neither the road authority nor any director, commissioner, 
council member, officer, employee, or agent of the road 
authority is personally liable on the bonds by reason of their 
issuance.  The road authority may make covenants it considers 
necessary to secure payment of the bonds, including, without 
limitation, establishing and maintaining reserves, and imposing 
and collecting tolls and other charges for use of the facility 
to provide net revenues adequate to provide for principal and 
interest on the bonds, and providing for the operation of the 
toll facility.  The bonds must not be payable from nor a charge 
against any funds of the road authority other than the revenues 
or property pledged or mortgaged to secure their payment.  The 
road authority is not subject to any liability on the bonds and 
it does not have any power to obligate itself to pay the bonds 
from funds other than the revenues and properties pledged and 
mortgaged.  No holder or holders of the bonds has the right to 
compel any exercise of taxing power of the road authority or any 
other public body, other than as authorized by and pledged 
pursuant to this section, to pay the principal of or interest on 
the bonds, nor to enforce payment of the bonds against any 
property of the road authority or other public body other than 
that expressly pledged or mortgaged for payment; and the bonds 
must so state.  Bonds payable from the net revenues of a toll 
facility and property pledged under this section are considered 
payable wholly from the income of a revenue-producing 
convenience within the meaning of chapter 475.  Sections 474A.01 
to 474A.21 apply to any issue of obligations under this section 
that are subject to limitation under a federal volume limitation 
act or existing federal tax law as defined in section 474A.02, 
subdivision 8. 
    Sec. 7.  [160.90] [LAW ENFORCEMENT.] 
    State and local law enforcement authorities have the same 
powers and authority on a toll facility within their respective 
jurisdictions as they have on any other highway, road, or street 
within their jurisdiction.  Law enforcement officers have free 
access to the toll facility at any time to exercise those powers.
State and local traffic and motor vehicle laws apply to persons 
driving or occupying motor vehicles on the toll facility. 
    Sec. 8.  [160.91] [JOINT AUTHORITY.] 
    Two or more road authorities with jurisdiction over a toll 
facility may enter into a joint powers agreement under section 
471.59, to exercise the powers, duties, and functions of the 
road authorities related to the toll facility, including 
negotiation and administration of the development agreement and 
related lease, management, and toll concession agreements.  If 
all road authorities with jurisdiction over a toll facility 
concur, title to or authority over the facility may be tendered 
to the commissioner who may accept the title or authority 
pursuant to the development agreement and this section. 
    When a highway project in the metropolitan area has been 
scheduled in the department's six-year work program but is 
designated as a toll facility, the commissioner shall substitute 
in the work program a similar highway project in the 
metropolitan area. 
    Presented to the governor May 12, 1993 
    Signed by the governor May 14, 1993, 10:08 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes