Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1997, Regular Session
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.
Official Publication of the State of Minnesota
Revisor of Statutes