2003 Minnesota Statutes

     446A.085 Transportation revolving loan fund. 

    Subdivision 1.    Definitions.  (a) For the purposes of 
 this section, the terms defined in this subdivision have the 
 meanings given them. 

    (b) "Act" means the National Highway System Designation Act 
 of 1995, Public Law 104-59, as amended. 

    (c) "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. 

    (d) "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" 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 Employment and Economic 
 Development, the commissioner of finance, and the commissioner 
 of transportation. 

    Subd. 2.    Purpose.  The purpose of the transportation 
 revolving loan fund is to provide loans for public 
 transportation projects eligible for financing or aid under any 
 federal act or program or state law, 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, maintenance and operation 
 facilities, 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 eligible under 
 United States Code, title 23.  A transit account is established 
 in the fund for transit capital projects eligible under United 
 States Code, title 49.  A state funds general loan account is 
 established in the fund for transportation projects eligible 
 under state law.  Other accounts may be established in the fund 
 as necessary for its management and administration.  The 
 transportation revolving loan fund receives federal money under 
 the act and money from any source.  Money received under this 
 section must be paid to the commissioner of finance and credited 
 to the transportation revolving loan fund.  Money in the fund is 
 annually appropriated to the authority 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 and individual accounts in the fund.  For 
 those purposes, the authority may exercise all powers provided 
 in this chapter. 

    Subd. 5. Repealed by amendment, 1Sp2001 c 8 art 2 s 67 

    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 or this section, 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; 

    (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 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; 

    (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 Transportation Committee 
 shall comply with the applicable provisions of the act and state 
 law.  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 disbursed for specific project elements only after 
 all applicable 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, shall 
 be paid by the commissioner of transportation to the appropriate 
 loan fund to offset the loan repayments that are due. 

    Subd. 12.    Rules of Transportation Committee and 
 authority.  The commissioner of the Department of Employment 
 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 Employment 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; 1Sp2001 c 8 art 2 s 67; 2003 c 112 art 2 s 50; 1Sp2003 c 
 4 s 1