1.1                          A bill for an act 
  1.2             relating to transportation; establishing trunk highway 
  1.3             corridor-protection revolving loan account; 
  1.4             appropriating money; amending Minnesota Statutes 2002, 
  1.5             sections 161.04, by adding a subdivision; 174.02, by 
  1.6             adding a subdivision; proposing coding for new law in 
  1.7             Minnesota Statutes, chapter 161. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 161.04, is 
  1.10  amended by adding a subdivision to read: 
  1.11     Subd. 5.  [TRUNK HIGHWAY CORRIDOR-PROTECTION REVOLVING LOAN 
  1.12  ACCOUNT.] A trunk highway corridor-protection revolving loan 
  1.13  account is established in the trunk highway fund to make loans 
  1.14  for the purposes described in section 161.087, subdivision 2.  
  1.15  Money received under section 161.087 for this account from any 
  1.16  source must be paid into the trunk highway fund and credited to 
  1.17  the account.  Money in the account is annually appropriated to 
  1.18  the commissioner of transportation for the purposes specified in 
  1.19  section 161.04 and does not lapse.  The account must be credited 
  1.20  with investment income and with repayments of principal, rents, 
  1.21  sale proceeds, and other money related to the ownership of the 
  1.22  property acquired with loan proceeds. 
  1.23     Sec. 2.  [161.087] [TRUNK HIGHWAY CORRIDOR-PROTECTION 
  1.24  REVOLVING LOAN ACCOUNT.] 
  1.25     Subdivision 1.  [PURPOSE.] The purpose of the trunk highway 
  1.26  corridor-protection revolving loan account is to provide loans 
  2.1   to road authorities outside the metropolitan area as defined in 
  2.2   section 473.121 for the purchase of property within their 
  2.3   jurisdictions.  To be eligible for purchase with loan proceeds, 
  2.4   the property must be located within the right-of-way of a state 
  2.5   trunk highway shown on an official map adopted under section 
  2.6   394.361 or 462.359 in anticipation of a trunk highway 
  2.7   construction, reconstruction, or improvement project that is not 
  2.8   programmed in the department's ten-year plan, but is identified 
  2.9   in the department's 20-year district plans that cover the 
  2.10  counties outside the metropolitan area.  The loans do not bear 
  2.11  interest. 
  2.12     Subd. 2.  [PROPERTY ELIGIBLE FOR PURCHASE WITH LOAN 
  2.13  PROCEEDS.] Money in the account must be used to make loans only 
  2.14  to purchase property described in subdivision 1 under one or 
  2.15  more of the following conditions: 
  2.16     (1) the property is primarily undeveloped, and there is a 
  2.17  reasonable probability that the property will increase in value 
  2.18  before highway construction; 
  2.19     (2) the property is subject to imminent conversion to a use 
  2.20  that would jeopardize its availability for highway construction; 
  2.21     (3) open market opportunities exist making developed 
  2.22  properties available for sale, provided all parties involved 
  2.23  agree to the sale; or 
  2.24     (4) the property is homestead and cannot be sold at its 
  2.25  appraised fair market value due to its location in a future 
  2.26  trunk highway right-of-way as indicated on an official map, and 
  2.27  the owner requests acquisition from the road authority. 
  2.28     Subd. 3.  [LOAN APPLICATION.] A road authority outside the 
  2.29  metropolitan area may apply for a loan from the account by 
  2.30  submitting an application to the department on a form prescribed 
  2.31  by the department.  The applicant must state the estimated cost 
  2.32  of the proposed acquisition and other possible sources of 
  2.33  funding in addition to the loan sought. 
  2.34     Subd. 4.  [LOAN REPAYMENT THROUGH CONVEYANCE TO 
  2.35  COMMISSIONER.] A road authority that borrows money from the 
  2.36  account shall hold the acquired property until it is conveyed to 
  3.1   the commissioner to allow for construction of the trunk highway, 
  3.2   except as otherwise provided in subdivision 5.  Conveyance by 
  3.3   the road authority of the property, together with all rents and 
  3.4   other money received by virtue of the road authority's ownership 
  3.5   of the property, shall constitute full repayment of the loan. 
  3.6      Subd. 5.  [LOAN REPAYMENT AFTER SALE OF PROPERTY.] Upon the 
  3.7   commissioner's notification to the road authority that the plan 
  3.8   to construct the highway has been abandoned or the location of 
  3.9   the proposed highway has changed, the road authority shall sell 
  3.10  the property at market value in accordance with the procedures 
  3.11  required for the disposition of property.  All rents, sale 
  3.12  proceeds, and other money received by the road authority by 
  3.13  virtue of its ownership of the property and all proceeds from 
  3.14  the conveyance or sale of the property must be paid to the 
  3.15  commissioner and constitutes full repayment of the loan. 
  3.16     Sec. 3.  Minnesota Statutes 2002, section 174.02, is 
  3.17  amended by adding a subdivision to read: 
  3.18     Subd. 8.  [TRUNK HIGHWAY CORRIDOR-PROTECTION ACCOUNT 
  3.19  LOANS.] The commissioner may make loans from the trunk highway 
  3.20  corridor-protection revolving loan account created in section 
  3.21  161.087 and may enter into agreements for the repayments of the 
  3.22  loans. 
  3.23     Sec. 4.  [TRANSFER.] 
  3.24     $....... is transferred from the trunk highway fund to the 
  3.25  trunk highway corridor-protection revolving loan account.