1.1 	A bill for an act
1.2 	relating to highways; providing for interest paid on
1.3 	advances made by road authority to commissioner of
1.4 	transportation to expedite trunk highway construction;
1.5 	amending Minnesota Statutes 2004, section 161.361,
1.6 	subdivision 2.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 161.361,
1.9 	subdivision 2, is amended to read:
1.10 		Subd. 2.Repayment.  Subject to the availability of state
1.11 	money, the commissioner shall repay the amounts advanced under
1.12 	this section, up to the state's share of project costs, under
1.13 	terms of the agreement.  The agreement may provide for payment
1.14 	of interest for funds advanced under subdivisions 1a and 1b at a
1.15 	rate of interest agreed upon by the parties. ~~The maximum~~
1.16 	~~interest rate that may be paid is the rate earned by the state~~
1.17 	~~on invested commissioner of finance cash for the month before~~
1.18 	~~the date the agreement is executed or the actual interest paid~~
1.19 	~~by the road authority in borrowing for the amount advanced,~~
1.20 	~~whichever rate is less.~~