1999 Minnesota Statutes

     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, acting on behalf 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.  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 authorize the making of loans to 
 borrowers by the authority for transportation purposes 
 authorized by the act, without further action by the authority.  
 The authority may not make loans for transportation purposes 
 without the approval of the transportation committee.  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. 

    HIST: 1997 c 141 s 10; 1998 c 389 art 16 s 17; 1999 c 230 s 
 34,35