Minnesota Session Laws - 2004, Regular Session

                            CHAPTER 136-H.F.No. 1794 
                  An act relating to transportation; decreasing minimum 
                  required local contribution to federally funded 
                  airport projects; amending Minnesota Statutes 2002, 
                  section 360.305, subdivision 4. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2002, section 360.305, 
        subdivision 4, is amended to read: 
           Subd. 4.  [COSTS ALLOCATED; LOCAL CONTRIBUTION; HANGAR 
        CONSTRUCTION ACCOUNT.] (a) Except as otherwise provided in this 
        subdivision, the commissioner of transportation shall require as 
        a condition of assistance by the state that the political 
        subdivision, municipality, or public corporation make a 
        substantial contribution to the cost of the construction, 
        improvement, maintenance, or operation of the airport, in 
        connection with which the assistance of the state is sought.  
        These costs are referred to as project costs.  
           (b) For any airport, whether key, intermediate or landing 
        strip, where only state and local funds are to be used, the 
        contribution shall be not less than one-fifth of the sum of: 
           (1) the project costs; 
           (2) acquisition costs of the land and clear zones, which 
        are referred to as acquisition costs. 
           (c) For any airport where federal, state and local funds 
        are to be used, the contribution shall not be less than 
        one-tenth five percent of the sum of the project costs and 
        acquisition costs. 
           (d) The commissioner may pay the total cost of radio and 
        navigational aids. 
           (e) Notwithstanding paragraph (b) or (c), the commissioner 
        may pay all of the project costs of a new landing strip, but not 
        an intermediate airport or key airport, or may pay an amount 
        equal to the federal funds granted and used for a new landing 
        strip plus all of the remaining project costs; but the total 
        amount paid by the commissioner for the project costs of a new 
        landing strip, unless specifically authorized by an act 
        appropriating funds for the new landing strip, shall not exceed 
        $200,000. 
           (f) Notwithstanding paragraph (b) or (c), the commissioner 
        may pay all the project costs for research and development 
        projects, including, but not limited to noise abatement; 
        provided that in no event shall the sums expended under this 
        paragraph exceed five percent of the amount appropriated for 
        construction grants.  
           (g) To receive aid under this section for project costs or 
        for acquisition costs, the municipality must enter into an 
        agreement with the commissioner giving assurance that the 
        airport will be operated and maintained in a safe, serviceable 
        manner for aeronautical purposes only for the use and benefit of 
        the public: 
           (1) for 20 years after the date that any state funds for 
        project costs are received by the municipality; and 
           (2) for 99 years after the date that any state funds for 
        acquisition costs are received by the municipality.  
        The agreement may contain other conditions as the commissioner 
        deems reasonable. 
           (h) The commissioner shall establish a hangar construction 
        revolving account which shall be used for the purpose of 
        financing the construction of hangar buildings to be constructed 
        by municipalities owning airports.  All municipalities owning 
        airports are authorized to enter into contracts for the 
        construction of hangars, and contracts with the commissioner for 
        the financing of hangar construction for an amount and period of 
        time as may be determined by the commissioner and municipality.  
        All receipts from the financing contracts shall be deposited in 
        the hangar construction revolving account and are reappropriated 
        for the purpose of financing construction of hangar buildings.  
        The commissioner may pay from the hangar construction revolving 
        account 80 percent of the cost of financing construction of 
        hangar buildings.  For purposes of this clause, the construction 
        of hangars shall include their design.  The commissioner shall 
        transfer up to $4,400,000 from the state airports fund to the 
        hangar construction revolving account. 
           (i) The commissioner may pay a portion of the purchase 
        price of any airport maintenance and safety equipment and of the 
        actual airport snow removal costs incurred by any municipality.  
        The portion to be paid by the state shall not exceed two-thirds 
        of the cost of the purchase price or snow removal.  To receive 
        aid a municipality must enter into an agreement of the type 
        referred to in paragraph (g). 
           (j) This subdivision shall apply only to project costs or 
        acquisition costs of municipally owned airports which are 
        incurred after June 1, 1971. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Presented to the governor March 8, 2004 
           Signed by the governor March 10, 2004, 11:05 a.m.