1.1                          A bill for an act 
  1.2             relating to capital improvements; authorizing spending 
  1.3             for public improvements of a capital nature; allowing 
  1.4             payment of trunk highway bonds and interest from any 
  1.5             source of funds; authorizing annual gasoline tax rate 
  1.6             adjustment; authorizing issuance of trunk highway 
  1.7             bonds; appropriating money for transportation 
  1.8             improvements; amending Minnesota Statutes 1998, 
  1.9             sections 167.51, subdivision 2; and 296A.07, by adding 
  1.10            a subdivision; proposing coding for new law in 
  1.11            Minnesota Statutes, chapter 270. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1998, section 167.51, 
  1.14  subdivision 2, is amended to read: 
  1.15     Subd. 2.  [TRANSFERS.] All money transferred from the trunk 
  1.16  highway fund or from any other source to the Minnesota trunk 
  1.17  highway bond account and all income from the investment thereof 
  1.18  shall be available for the payment of outstanding state trunk 
  1.19  highway bonds and interest thereon, whether or not issued 
  1.20  pursuant to section 167.50, in the same manner as the proceeds 
  1.21  of taxes paid into the trunk highway fund, and so much thereof 
  1.22  as may be necessary is appropriated for such payments.  The 
  1.23  legislature may appropriate and transfer to the Minnesota trunk 
  1.24  highway bond account, for the payment of such trunk highway 
  1.25  bonds and interest thereon, any other moneys in the state 
  1.26  treasury not otherwise appropriated.  The commissioner of 
  1.27  finance and the state treasurer are directed to make the 
  1.28  appropriate entries in the accounts of the respective funds. 
  2.1      Sec. 2.  [270.081] [TAXES CREDITED TO MINNESOTA TRUNK 
  2.2   HIGHWAY BOND ACCOUNT.] 
  2.3      The revenue credited to the trunk highway fund from a tax 
  2.4   rate adjustment imposed under section 296A.07, subdivision 5, 
  2.5   must be credited to the Minnesota trunk highway bond account in 
  2.6   the state bond fund. 
  2.7      Sec. 3.  Minnesota Statutes 1998, section 296A.07, is 
  2.8   amended by adding a subdivision to read: 
  2.9      Subd. 5.  [ANNUAL GASOLINE TAX RATE ADJUSTMENT.] (a) The 
  2.10  commissioner of finance, in consultation with the commissioner 
  2.11  of transportation, shall annually determine the amount of trunk 
  2.12  highway bond interest and principal that will be due and payable 
  2.13  during the ensuing fiscal year.  This amount, less any general 
  2.14  fund appropriation available for trunk highway bond debt service 
  2.15  payment, shall constitute the debt service deficiency.  The debt 
  2.16  service deficiency amount must be reported to the commissioner 
  2.17  of revenue before October 1 of each year.  
  2.18     (b) Before November 1 of each year, the commissioner of 
  2.19  revenue shall recompute and publish the rate of the gasoline 
  2.20  excise tax.  The new rate per gallon must be calculated by 
  2.21  adding the rate in effect at the time of the recomputation and 
  2.22  an amount that will generate sufficient revenue to the trunk 
  2.23  highway fund during the ensuing fiscal year to equal the amount 
  2.24  of the debt service deficiency.  The new rate must be rounded to 
  2.25  the nearest 0.1 cent and is effective on April 1 of each year. 
  2.26     Sec. 4.  [TRUNK HIGHWAY BONDS; ISSUANCE.] 
  2.27     The commissioner of finance is authorized and directed, on 
  2.28  recommendation of the commissioner of transportation, to issue 
  2.29  and sell Minnesota trunk highway bonds under Minnesota Statutes, 
  2.30  sections 167.50 to 167.52, and the Minnesota Constitution, 
  2.31  article XI, sections 4 to 7, and article XIV, section 11, at 
  2.32  such times and in such amounts as are determined by the 
  2.33  commissioner of transportation.  Bonds issued under this section 
  2.34  are authorized in an aggregate principal amount of 
  2.35  $800,000,000.  Not more than $125,000,000 of the bonds 
  2.36  authorized under this section may be sold in any fiscal year.  
  3.1   The proceeds from the bonds must be deposited in a separate bond 
  3.2   proceeds account in the trunk highway fund. 
  3.3      Sec. 5.  [APPROPRIATIONS.] 
  3.4      (a) $125,000,000 is appropriated to the commissioner of 
  3.5   transportation in each of the fiscal years ending June 30, 2011, 
  3.6   or until a total of $800,000,000 in trunk highway bond proceeds 
  3.7   has been received by the commissioner of transportation.  This 
  3.8   appropriation is from the separate bond proceeds account in the 
  3.9   trunk highway fund.  This appropriation is for reconstruction 
  3.10  and replacement of key bridges on the state trunk highway 
  3.11  system; for construction, improvement, and maintenance of the 
  3.12  interregional corridor system as identified by the commissioner; 
  3.13  for the improvement of highways classified as bottlenecks by the 
  3.14  commissioner; and for acquisition of properties necessary to 
  3.15  locate, construct, reconstruct, improve, and maintain the trunk 
  3.16  highway system.  Before this appropriation may be used for the 
  3.17  interregional corridor system, improvement of bottleneck areas, 
  3.18  or right-of-way acquisition, the commissioner of transportation 
  3.19  must demonstrate to the commissioner of finance that the 
  3.20  proposed use of debt financing to accelerate the project is a 
  3.21  cost-effective investment of state funds. 
  3.22     (b) $100,000,000 is appropriated to the commissioner of 
  3.23  transportation in fiscal year 2001 from the general fund to be 
  3.24  used for the purposes and in the manner specified in paragraph 
  3.25  (a).