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Office of the Revisor of Statutes

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

                            CHAPTER 141-S.F.No. 1097 
                  An act relating to transportation; creating revolving 
                  loan accounts for trunk highways, county state-aid 
                  highways, and municipal state-aid streets; creating 
                  transportation revolving loan fund for federally 
                  eligible transportation projects, managed by public 
                  facilities authority; adding commissioner of 
                  transportation as member of the authority; creating 
                  transportation committee; providing for rulemaking; 
                  amending Minnesota Statutes 1996, sections 161.04, by 
                  adding a subdivision; 162.06, by adding a subdivision; 
                  162.07, subdivision 1; 162.12, by adding a 
                  subdivision; 162.13, subdivision 1; 446A.03, 
                  subdivision 1; and 446A.04, subdivision 5; proposing 
                  coding for new law in Minnesota Statutes, chapters 
                  162; and 446A. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 161.04, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [TRUNK HIGHWAY REVOLVING LOAN ACCOUNT.] A trunk 
        highway revolving loan account is created in the trunk highway 
        fund.  Money in the account may be used to make loans.  Funds in 
        the trunk highway revolving loan account may not be used for any 
        toll facilities project or congestion-pricing project and may be 
        used only for trunk highway purposes and repayments and interest 
        from loans of those funds must be credited to the trunk highway 
        revolving loan account in the trunk highway fund.  Money in the 
        trunk highway revolving loan account is annually appropriated to 
        the commissioner and does not lapse.  Interest earned from 
        investment of money in this account must be deposited in the 
        trunk highway revolving loan account. 
           Sec. 2.  Minnesota Statutes 1996, section 162.06, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [COUNTY STATE-AID HIGHWAY REVOLVING LOAN 
        ACCOUNT.] A county state-aid highway revolving loan account is 
        created in the county state-aid highway fund.  The commissioner 
        may transfer to the account the amount allocated under section 
        162.065.  Money in the account may be used to make loans.  Funds 
        in the county state-aid highway revolving loan account may be 
        used only for aid in the construction, improvement, and 
        maintenance of county state-aid highways.  Funds in the account 
        may not be used for any toll facilities project or 
        congestion-pricing project.  Repayments and interest from loans 
        from the county state-aid highway revolving loan account must be 
        credited to that account.  Money in the account is annually 
        appropriated to the commissioner and does not lapse.  Interest 
        earned from investment of money in this account must be 
        deposited in the county state-aid highway revolving loan account.
           Sec. 3.  [162.065] [ALLOCATING MATCHING FUNDS FOR CSAH 
        REVOLVING LOAN ACCOUNT.] 
           The screening board appointed under section 162.07, 
        subdivision 5, may recommend to the commissioner that the 
        commissioner allocate a portion of county state-aid highway 
        funds to the county state-aid highway revolving loan account.  
        The commissioner may allocate no more than the amount 
        recommended by the screening board. 
           Sec. 4.  Minnesota Statutes 1996, section 162.07, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FORMULA.] After deducting for 
        administrative costs and for the disaster account and research 
        account and state park roads as heretofore provided, and for any 
        allocation made under section 162.065, the remainder of the 
        total sum provided for in section 162.06, subdivision 1, shall 
        be identified as the apportionment sum and shall be apportioned 
        by the commissioner to the several counties on the basis of the 
        needs of the counties as determined in accordance with the 
        following formula: 
           (1) An amount equal to ten percent of the apportionment sum 
        shall be apportioned equally among the 87 counties.  
           (2) An amount equal to ten percent of the apportionment sum 
        shall be apportioned among the several counties so that each 
        county shall receive of such amount the percentage that its 
        motor vehicle registration for the calendar year preceding the 
        one last past, determined by residence of registrants, bears to 
        the total statewide motor vehicle registration.  
           (3) An amount equal to 30 percent of the apportionment sum 
        shall be apportioned among the several counties so that each 
        county shall receive of such amount the percentage that its 
        total lane-miles of approved county state-aid highways bears to 
        the total lane-miles of approved statewide county state-aid 
        highways.  In 1997 and subsequent years no county may receive, 
        as a result of an apportionment under this clause based on 
        lane-miles rather than miles of approved county state-aid 
        highways, an apportionment that is less than its apportionment 
        in 1996. 
           (4) An amount equal to 50 percent of the apportionment sum 
        shall be apportioned among the several counties so that each 
        county shall receive of such amount the percentage that its 
        money needs bears to the sum of the money needs of all of the 
        individual counties; provided, that the percentage of such 
        amount that each county is to receive shall be adjusted so that 
        each county shall receive in 1958 a total apportionment at least 
        ten percent greater than its total 1956 apportionments from the 
        state road and bridge fund; and provided further that those 
        counties whose money needs are thus adjusted shall never receive 
        a percentage of the apportionment sum less than the percentage 
        that such county received in 1958.  
           Sec. 5.  Minnesota Statutes 1996, section 162.12, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [MUNICIPAL STATE-AID STREET REVOLVING LOAN 
        ACCOUNT.] A municipal state-aid street revolving loan account is 
        created in the municipal state-aid street fund.  The 
        commissioner may transfer to the account the amount allocated 
        under section 162.125.  Money in the account may be used to make 
        loans.  Funds in the municipal state-aid street revolving loan 
        account may be used only for aid in the construction, 
        improvement, and maintenance of municipal state-aid streets.  
        Funds in the account may not be used for any toll facilities 
        project or congestion-pricing project.  Repayments and interest 
        from loans from the municipal state-aid street revolving loan 
        account must be credited to that account.  Money in the account 
        is annually appropriated to the commissioner and does not 
        lapse.  Interest earned from investment of money in this account 
        must be deposited in the municipal state-aid street revolving 
        loan account. 
           Sec. 6.  [162.125] [ALLOCATING MATCHING FUNDS FOR MSAS 
        REVOLVING LOAN ACCOUNT.] 
           The screening board appointed under section 162.13, 
        subdivision 3, may recommend to the commissioner that the 
        commissioner allocate a portion of municipal state-aid street 
        funds to the municipal state-aid street revolving loan account.  
        The commissioner may allocate no more than the amount 
        recommended by the screening board. 
           Sec. 7.  Minnesota Statutes 1996, section 162.13, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FACTORS IN FORMULA.] After deducting for 
        administrative costs and for the disaster fund and research 
        account as heretofore provided, and for any allocation made 
        under section 162.125, the remainder of the total sum provided 
        for in subdivision 1 of section 162.12 shall be identified as 
        the apportionment sum, and shall be apportioned by the 
        commissioner to the cities having a population of 5,000 or more, 
        in accordance with the following formula: 
           (1) An amount equal to 50 percent of such apportionment sum 
        shall be apportioned among the cities having a population of 
        5,000 or more so that each such city shall receive of such 
        amount the percentage that its money needs bears to the total 
        money needs of all such cities.  
           (2) An amount equal to 50 percent of such apportionment sum 
        shall be apportioned among the cities having a population of 
        5,000 or more so that each such city shall receive of such 
        amount the percentage that its population bears to the total 
        population of all such cities.  
           Sec. 8.  Minnesota Statutes 1996, section 446A.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERSHIP.] The Minnesota public 
        facilities authority consists of the commissioner of trade and 
        economic development, the commissioner of finance, the 
        commissioner of the pollution control agency, the commissioner 
        of agriculture, and the commissioner of health, and the 
        commissioner of transportation. 
           Sec. 9.  Minnesota Statutes 1996, section 446A.04, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FEES.] (a) The authority may set and collect 
        fees for costs incurred by the authority for audits, arbitrage 
        accounting, and payment of fees charged by the state board of 
        investment.  The authority may also set and collect fees for 
        costs incurred by the commissioner and, the pollution control 
        agency, and the department of transportation, including costs 
        for personnel and administrative services, for its financings 
        and the establishment and maintenance of reserve funds.  Fees 
        charged directly to borrowers upon executing a loan agreement 
        must not exceed one-half of one percent of the loan amount.  
        Servicing fees assessed to loan repayments must not exceed two 
        percent of the loan repayment.  The disposition of fees 
        collected for costs incurred by the authority is governed by 
        section 446A.11, subdivision 13.  Fees collected under this 
        subdivision for costs incurred by the commissioner or the 
        pollution control agency must be credited to the general 
        fund.  Fees collected under this subdivision for costs incurred 
        by the commissioner of transportation must be credited to the 
        fund or account which is the source of the loan to which the 
        fees are related. 
           (b) The authority shall annually report to the chairs of 
        the finance and appropriations committees of the legislature on: 
           (1) the amount of fees collected under this subdivision for 
        costs incurred by the authority; 
           (2) the purposes for which the fee proceeds have been 
        spent; and 
           (3) the amount of any remaining balance of fee proceeds. 
           Sec. 10.  [446A.085] [TRANSPORTATION REVOLVING LOAN FUND.] 
           Subdivision 1.  [DEFINITIONS.] For the purposes of this 
        section, the terms defined in this subdivision have the meanings 
        given them. 
           (a) [ACT.] "Act" means the National Highway System 
        Designation Act of 1995, Public Law Number 104-59, as amended. 
           (b) [BORROWER.] "Borrower" means the state, counties, 
        cities, and other governmental entities eligible under the act 
        and state law to apply for and receive loans from the 
        transportation revolving loan fund, the trunk highway revolving 
        loan account, the county state-aid highway revolving loan 
        account, and the municipal state-aid street revolving loan 
        account. 
           (c) [DEPARTMENT.] "Department" means the department of 
        transportation. 
           (d) [LOAN.] "Loan" means financial assistance provided for 
        all or part of the cost of a project including money disbursed 
        in anticipation of reimbursement or repayment, loan guarantees, 
        lines of credit, credit enhancements, equipment financing 
        leases, bond insurance, or other forms of financial assistance. 
           (e) [TRANSPORTATION COMMITTEE.] "Transportation committee" 
        means a committee of the Minnesota public facilities authority 
        consisting of the commissioner of the department of trade and 
        economic development, the commissioner of finance, and the 
        commissioner of transportation. 
           Subd. 2.  [PURPOSE.] The purpose of the transportation 
        revolving loan fund, the trunk highway revolving loan account, 
        the county state-aid highway revolving loan account, and the 
        municipal state-aid street revolving loan account is to provide 
        loans and matching money for public transportation projects 
        eligible for financing or aid under any federal act or program, 
        including, without limitation, the study of the feasibility of 
        construction, reconstruction, resurfacing, restoring, 
        rehabilitation, or replacement of transportation facilities; 
        acquisition of right-of-way; and maintenance, repair, 
        improvement, or construction of city, town, county, or state 
        highways, roads, streets, rights-of-way, bridges, tunnels, 
        railroad-highway crossings, drainage structures, signs, 
        guardrails, and protective structures used in connection with 
        highways or transit projects.  Enhancement items, including 
        without limitation bicycle paths, ornamental lighting, and 
        landscaping, are eligible for financing provided they are an 
        integral part of overall project design and construction of a 
        federal-aid highway.  Money in the fund may not be used for any 
        toll facilities project or congestion-pricing project. 
           Subd. 3.  [ESTABLISHMENT OF FUND.] A transportation 
        revolving loan fund is established to make loans for the 
        purposes described in subdivision 2.  A highway account is 
        established in the fund for highway projects.  A transit account 
        is established in the fund for transit capital projects.  The 
        transportation revolving loan fund shall receive federal money 
        under the act and money from any source other than the trunk 
        highway fund, the county state-aid highway fund, and the 
        municipal state-aid street fund.  Money received under this 
        section must be paid to the state treasurer and credited to the 
        transportation revolving loan fund.  Money in the fund is 
        annually appropriated to the commissioner and does not lapse.  
        The fund must be credited with investment income, and with 
        repayments of principal and interest, except for servicing fees 
        assessed under sections 446A.04, subdivision 5, and 446A.11, 
        subdivision 8. 
           Subd. 4.  [MANAGEMENT OF FUND AND ACCOUNTS.] The authority 
        shall manage and administer the transportation revolving loan 
        fund, the trunk highway revolving loan account, the county 
        state-aid highway revolving loan account, and the municipal 
        state-aid street revolving loan account.  For those purposes, 
        the authority may exercise all powers provided in this chapter. 
           Subd. 5.  [TRANSFER OF MONEY.] With the consent of the 
        transportation committee, the commissioner of transportation may 
        transfer money from the trunk highway revolving loan account to 
        the trunk highway fund, from the county state-aid highway 
        revolving loan account to the county state-aid highway fund, and 
        from the municipal state-aid street revolving loan account to 
        the municipal state-aid street fund. 
           Subd. 6.  [TRANSPORTATION COMMITTEE.] The transportation 
        committee may make loans to borrowers for purposes authorized by 
        the act.  Each project must be certified by the commissioner of 
        transportation before its consideration by the transportation 
        committee. 
           Subd. 7.  [APPLICATIONS.] Applicants for loans must submit 
        an application to the transportation committee on forms 
        prescribed by the transportation committee.  The applicant must 
        provide the following information: 
           (1) the estimated cost of the project and the amount of the 
        loan sought; 
           (2) other possible sources of funding in addition to loans 
        sought from the transportation revolving loan fund, the trunk 
        highway revolving loan account, the county state-aid highway 
        revolving loan account, or the municipal state-aid street 
        revolving loan account; 
           (3) the proposed methods and sources of funds to be used 
        for repayment of loans received; and 
           (4) information showing the financial status and ability of 
        the borrower to repay loans. 
           Subd. 8.  [CERTIFICATION OF PROJECTS.] The commissioner of 
        transportation shall consider the following information when 
        evaluating projects to certify for funding to the transportation 
        committee: 
           (1) a description of the nature and purpose of the proposed 
        transportation project including an explanation of the need for 
        the project and the reasons why it is in the public interest; 
           (2) the relationship of the project to the area 
        transportation improvement program, the approved statewide 
        transportation improvement program, and to any other 
        transportation plans required under state or federal law; 
           (3) the estimated cost of the project and the amount of 
        loans sought; 
           (4) proposed sources of funding in addition to loans sought 
        from the transportation revolving loan fund, the trunk highway 
        revolving loan account, the county state-aid highway revolving 
        loan account, or municipal state-aid street revolving loan 
        account; 
           (5) the need for the project as part of the overall 
        transportation system; 
           (6) the overall economic impact of the project; and 
           (7) the extent to which completion of the project will 
        improve the movement of people and freight. 
           Subd. 9.  [LOAN CONDITIONS.] When making loans from the 
        transportation revolving loan fund, the trunk highway revolving 
        loan account, the county state-aid highway revolving loan 
        account, or the municipal state-aid street revolving loan 
        account, the transportation committee shall comply with the 
        conditions of the act.  In addition, a loan made under this 
        section must: 
           (1) bear interest at or below market rates or as otherwise 
        specified in federal law; 
           (2) have a repayment term not longer than 30 years; 
           (3) be fully amortized no later than 30 years after project 
        completion; 
           (4) be subject to repayment of principal and interest 
        beginning not later than five years after the facility financed 
        with a loan has been completed, or in the case of a highway 
        project, five years after the facility has opened to traffic; 
        and 
           (5) be made only after all federal environmental 
        requirements applicable to the project have been complied with 
        and all federal environmental requirements have been met. 
           Subd. 10.  [LOANS IN ANTICIPATION OF FUTURE 
        APPORTIONMENTS.] A loan may be made to a county, or to a 
        statutory or home rule charter city having a population of 5,000 
        or more, in anticipation of repayment of the loan from sums that 
        will be apportioned to a county from the county state-aid 
        highway fund under section 162.07 or to a city from the 
        municipal state-aid street fund under section 162.14. 
           Subd. 11.  [PAYMENT BY COUNTY OR CITY.] Notwithstanding the 
        allocation provisions of section 162.08 for counties, and the 
        apportionment provisions of section 162.14 for cities, sums 
        apportioned under section 162.13 to a statutory or home rule 
        charter city, or under section 162.07 to a county, that has loan 
        repayments due to the transportation revolving loan fund, the 
        trunk highway revolving loan account, the county state-aid 
        highway revolving loan account, or the municipal state-aid 
        street revolving loan account shall be paid by the commissioner 
        of transportation to the appropriate loan fund or account to 
        offset the loan repayments that are due. 
           Subd. 12.  [RULES OF TRANSPORTATION COMMITTEE AND 
        AUTHORITY.] The commissioner of the department of trade and 
        economic development shall adopt administrative rules specifying 
        the procedures that will be used for the administration of the 
        duties of the transportation committee and authority.  The rules 
        must include criteria, standards, and procedures that will be 
        used for making loans, determining interest rates to be charged 
        on loans, the amount of project financing to be provided, the 
        collateral that will be required, the requirements for dedicated 
        sources of revenue or income streams to ensure repayment of 
        loans, and the length of repayment terms.  
           Subd. 13.  [AUTHORITY AND RULES OF DEPARTMENT.] The 
        commissioner of transportation shall establish, adopt rules for, 
        and implement a program to identify, assist with the development 
        of, and certify projects eligible for loans under the act to the 
        transportation committee.  Until rules are adopted by the 
        commissioner of transportation, the commissioner of 
        transportation may certify to the transportation committee any 
        project that has been reviewed through an approved planning 
        process that qualifies the project to be included in the 
        statewide transportation program or amended into the statewide 
        transportation improvement program. 
           Subd. 14.  [JOINT RULES.] The commissioner of the 
        department of trade and economic development and the 
        commissioner of transportation may adopt a single set of rules. 
           Sec. 11.  [EFFECTIVE DATE.] 
           (a) Sections 1, 8, and 9 are effective July 1, 1997.  
        Sections 2 to 7 are effective six months after the effective 
        date of an increase in the gasoline excise tax rate or vehicle 
        registration tax rates.  Section 10, subdivisions 1 to 11, are 
        effective July 1, 1997.  Section 10, subdivisions 12 to 14, are 
        effective the day following final enactment. 
           (b) Notwithstanding paragraph (a), no provision of sections 
        1 to 10 may take effect until Minnesota has been notified by the 
        United States Department of Transportation that it will be 
        receiving a specific sum in federal funds that has been 
        designated specifically for a state infrastructure bank. 
           Presented to the governor May 9, 1997 
           Signed by the governor May 12, 1997, 11:05 a.m.