1.1                          A bill for an act 
  1.2             relating to transportation; creating revolving loan 
  1.3             accounts for trunk highways, county state-aid 
  1.4             highways, and municipal state-aid streets; creating 
  1.5             transportation revolving loan fund for federally 
  1.6             eligible transportation projects, managed by public 
  1.7             facilities authority; adding commissioner of 
  1.8             transportation as member of the authority; creating 
  1.9             transportation committee; providing for rulemaking; 
  1.10            appropriating money; amending Minnesota Statutes 1996, 
  1.11            sections 161.04, by adding a subdivision; 162.06, by 
  1.12            adding a subdivision; 162.07, subdivision 1; 162.12, 
  1.13            by adding a subdivision; 162.13, subdivision 1; 
  1.14            446A.03, subdivision 1; and 446A.04, subdivision 5; 
  1.15            proposing coding for new law in Minnesota Statutes, 
  1.16            chapters 162; and 446A. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  Minnesota Statutes 1996, section 161.04, is 
  1.19  amended by adding a subdivision to read: 
  1.20     Subd. 3.  [TRUNK HIGHWAY REVOLVING LOAN ACCOUNT.] A trunk 
  1.21  highway revolving loan account is created in the trunk highway 
  1.22  fund.  The commissioner may transfer up to $30,000,000 from the 
  1.23  state appropriation for state road construction to the trunk 
  1.24  highway revolving loan account to be available for loans.  Funds 
  1.25  in the trunk highway revolving loan account may be used only for 
  1.26  trunk highway purposes and repayments and interest from loans of 
  1.27  those funds must be credited to the trunk highway revolving loan 
  1.28  account in the trunk highway fund.  Money in the trunk highway 
  1.29  revolving loan account is annually appropriated to the 
  1.30  commissioner and does not lapse.  Interest earned from 
  1.31  investment of money in this account must be deposited in the 
  2.1   trunk highway revolving loan account. 
  2.2      Sec. 2.  Minnesota Statutes 1996, section 162.06, is 
  2.3   amended by adding a subdivision to read: 
  2.4      Subd. 6.  [COUNTY STATE-AID HIGHWAY REVOLVING LOAN 
  2.5   ACCOUNT.] A county state-aid highway revolving loan account is 
  2.6   created in the county state-aid highway fund.  The commissioner 
  2.7   may transfer to the account the amount allocated under section 
  2.8   162.065.  Money in the account may be used to make loans.  
  2.9   Repayments and interest from loans from the county state-aid 
  2.10  highway revolving loan account must be credited to that 
  2.11  account.  Money in the account is annually appropriated to the 
  2.12  commissioner and does not lapse.  Interest earned from 
  2.13  investment of money in this account must be deposited in the 
  2.14  county state-aid revolving loan account. 
  2.15     Sec. 3.  [162.065] [ALLOCATING MATCHING FUNDS FOR CSAH 
  2.16  REVOLVING LOAN ACCOUNT.] 
  2.17     The screening board appointed under section 162.07, 
  2.18  subdivision 5, may recommend to the commissioner that the 
  2.19  commissioner allocate a portion of county state-aid highway 
  2.20  funds to the county state-aid highway revolving loan account.  
  2.21  The commissioner may allocate no more than the amount 
  2.22  recommended by the screening board. 
  2.23     Sec. 4.  Minnesota Statutes 1996, section 162.07, 
  2.24  subdivision 1, is amended to read: 
  2.25     Subdivision 1.  [FORMULA.] After deducting for 
  2.26  administrative costs and for the disaster account and research 
  2.27  account and state park roads as heretofore provided, and for any 
  2.28  allocation made under section 162.065, the remainder of the 
  2.29  total sum provided for in section 162.06, subdivision 1, shall 
  2.30  be identified as the apportionment sum and shall be apportioned 
  2.31  by the commissioner to the several counties on the basis of the 
  2.32  needs of the counties as determined in accordance with the 
  2.33  following formula: 
  2.34     (1) An amount equal to ten percent of the apportionment sum 
  2.35  shall be apportioned equally among the 87 counties.  
  2.36     (2) An amount equal to ten percent of the apportionment sum 
  3.1   shall be apportioned among the several counties so that each 
  3.2   county shall receive of such amount the percentage that its 
  3.3   motor vehicle registration for the calendar year preceding the 
  3.4   one last past, determined by residence of registrants, bears to 
  3.5   the total statewide motor vehicle registration.  
  3.6      (3) An amount equal to 30 percent of the apportionment sum 
  3.7   shall be apportioned among the several counties so that each 
  3.8   county shall receive of such amount the percentage that its 
  3.9   total lane-miles of approved county state-aid highways bears to 
  3.10  the total lane-miles of approved statewide county state-aid 
  3.11  highways.  In 1997 and subsequent years no county may receive, 
  3.12  as a result of an apportionment under this clause based on 
  3.13  lane-miles rather than miles of approved county state-aid 
  3.14  highways, an apportionment that is less than its apportionment 
  3.15  in 1996. 
  3.16     (4) An amount equal to 50 percent of the apportionment sum 
  3.17  shall be apportioned among the several counties so that each 
  3.18  county shall receive of such amount the percentage that its 
  3.19  money needs bears to the sum of the money needs of all of the 
  3.20  individual counties; provided, that the percentage of such 
  3.21  amount that each county is to receive shall be adjusted so that 
  3.22  each county shall receive in 1958 a total apportionment at least 
  3.23  ten percent greater than its total 1956 apportionments from the 
  3.24  state road and bridge fund; and provided further that those 
  3.25  counties whose money needs are thus adjusted shall never receive 
  3.26  a percentage of the apportionment sum less than the percentage 
  3.27  that such county received in 1958.  
  3.28     Sec. 5.  Minnesota Statutes 1996, section 162.12, is 
  3.29  amended by adding a subdivision to read: 
  3.30     Subd. 5.  [MUNICIPAL STATE-AID STREET REVOLVING LOAN 
  3.31  ACCOUNT.] A municipal state-aid street revolving loan account is 
  3.32  created in the municipal state-aid street fund.  The 
  3.33  commissioner may transfer to the account the amount allocated 
  3.34  under section 162.125.  Money in the account may be used to make 
  3.35  loans.  Repayments and interest from loans from the municipal 
  3.36  state-aid street revolving loan account must be credited to that 
  4.1   account.  Money in the account is annually appropriated to the 
  4.2   commissioner and does not lapse.  Interest earned from 
  4.3   investment of money in this account must be deposited in the 
  4.4   municipal state-aid street revolving loan account. 
  4.5      Sec. 6.  [162.125] [ALLOCATING MATCHING FUNDS FOR MSAS 
  4.6   REVOLVING LOAN ACCOUNT.] 
  4.7      The screening board appointed under section 162.13, 
  4.8   subdivision 3, may recommend to the commissioner that the 
  4.9   commissioner allocate a portion of municipal state-aid street 
  4.10  funds to the municipal state-aid street revolving loan account.  
  4.11  The commissioner may allocate no more than the amount 
  4.12  recommended by the screening board. 
  4.13     Sec. 7.  Minnesota Statutes 1996, section 162.13, 
  4.14  subdivision 1, is amended to read: 
  4.15     Subdivision 1.  [FACTORS IN FORMULA.] After deducting for 
  4.16  administrative costs and for the disaster fund and research 
  4.17  account as heretofore provided, and for any allocation made 
  4.18  under section 162.125, the remainder of the total sum provided 
  4.19  for in subdivision 1 of section 162.12 shall be identified as 
  4.20  the apportionment sum, and shall be apportioned by the 
  4.21  commissioner to the cities having a population of 5,000 or more, 
  4.22  in accordance with the following formula: 
  4.23     (1) An amount equal to 50 percent of such apportionment sum 
  4.24  shall be apportioned among the cities having a population of 
  4.25  5,000 or more so that each such city shall receive of such 
  4.26  amount the percentage that its money needs bears to the total 
  4.27  money needs of all such cities.  
  4.28     (2) An amount equal to 50 percent of such apportionment sum 
  4.29  shall be apportioned among the cities having a population of 
  4.30  5,000 or more so that each such city shall receive of such 
  4.31  amount the percentage that its population bears to the total 
  4.32  population of all such cities.  
  4.33     Sec. 8.  Minnesota Statutes 1996, section 446A.03, 
  4.34  subdivision 1, is amended to read: 
  4.35     Subdivision 1.  [MEMBERSHIP.] The Minnesota public 
  4.36  facilities authority consists of the commissioner of trade and 
  5.1   economic development, the commissioner of finance, the 
  5.2   commissioner of the pollution control agency, the commissioner 
  5.3   of agriculture, ~~and~~ the commissioner of health, and the 
  5.4   commissioner of transportation. 
  5.5      Sec. 9.  Minnesota Statutes 1996, section 446A.04, 
  5.6   subdivision 5, is amended to read: 
  5.7      Subd. 5.  [FEES.] (a) The authority may set and collect 
  5.8   fees for costs incurred by the authority for audits, arbitrage 
  5.9   accounting, and payment of fees charged by the state board of 
  5.10  investment.  The authority may also set and collect fees for 
  5.11  costs incurred by the commissioner ~~and~~, the pollution control 
  5.12  agency, and the department of transportation, including costs 
  5.13  for personnel and administrative services, for ~~its~~ financings 
  5.14  and the establishment and maintenance of reserve funds.  Fees 
  5.15  charged directly to borrowers upon executing a loan agreement 
  5.16  must not exceed one-half of one percent of the loan amount.  
  5.17  Servicing fees assessed to loan repayments must not exceed two 
  5.18  percent of the loan repayment.  The disposition of fees 
  5.19  collected for costs incurred by the authority is governed by 
  5.20  section 446A.11, subdivision 13.  Fees collected under this 
  5.21  subdivision for costs incurred by the commissioner or the 
  5.22  pollution control agency must be credited to the general 
  5.23  fund.  Fees collected under this subdivision for costs incurred 
  5.24  by the commissioner of transportation must be credited to the 
  5.25  trunk highway fund. 
  5.26     (b) The authority shall annually report to the chairs of 
  5.27  the finance and appropriations committees of the legislature on: 
  5.28     (1) the amount of fees collected under this subdivision for 
  5.29  costs incurred by the authority; 
  5.30     (2) the purposes for which the fee proceeds have been 
  5.31  spent; and 
  5.32     (3) the amount of any remaining balance of fee proceeds. 
  5.33     Sec. 10.  [446A.085] [TRANSPORTATION REVOLVING LOAN FUND.] 
  5.34     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  5.35  section, the terms defined in this subdivision have the meanings 
  5.36  given them. 
  6.1      (a) [ACT.] "Act" means the National Highway System 
  6.2   Designation Act of 1995, Public Law Number 104-59, as amended. 
  6.3      (b) [BORROWER.] "Borrower" means the state, counties, 
  6.4   cities, and other governmental or nongovernmental entities 
  6.5   eligible under the act and state law to apply for and receive 
  6.6   loans from the transportation revolving loan fund, the trunk 
  6.7   highway revolving loan account, the county state-aid highway 
  6.8   revolving loan account, and the municipal state-aid street 
  6.9   revolving loan account. 
  6.10     (c) [DEPARTMENT.] "Department" means the department of 
  6.11  transportation. 
  6.12     (d) [LOAN.] "Loan" means financial assistance provided for 
  6.13  all or part of the cost of a project including money disbursed 
  6.14  in anticipation of reimbursement or repayment, loan guarantees, 
  6.15  lines of credit, credit enhancements, equipment financing 
  6.16  leases, bond insurance, or other forms of financial assistance. 
  6.17     (e) [TRANSPORTATION COMMITTEE.] "Transportation committee" 
  6.18  means a committee of the Minnesota public facilities authority 
  6.19  consisting of the commissioner of the department of trade and 
  6.20  economic development, the commissioner of finance, and the 
  6.21  commissioner of transportation. 
  6.22     Subd. 2.  [PURPOSE.] The purpose of the transportation 
  6.23  revolving loan fund, the trunk highway revolving loan account, 
  6.24  the county state-aid highway revolving loan account, and the 
  6.25  municipal state-aid street revolving loan account is to provide 
  6.26  loans and matching money for public or private transportation 
  6.27  projects eligible for financing or aid under any federal act or 
  6.28  program, including, without limitation, the study of the 
  6.29  feasibility of, or the construction, reconstruction, 
  6.30  resurfacing, restoring, rehabilitation, or replacement of 
  6.31  transportation facilities, acquisition of right-of-way, and 
  6.32  maintenance, repair, improvement, or construction of city, town, 
  6.33  county, or state highways, roads, streets, rights-of-way, 
  6.34  bridges, tunnels, railroad-highway crossings, drainage 
  6.35  structures, signs, guardrails, and protective structures used in 
  6.36  connection with highways or transit projects.  Money in the 
  7.1   transit account of the fund may be loaned for any transit 
  7.2   capital expense. 
  7.3      Subd. 3.  [ESTABLISHMENT OF FUND.] A transportation 
  7.4   revolving loan fund is established to make loans for the 
  7.5   purposes described in subdivision 2.  The transportation 
  7.6   revolving loan fund shall include a highway account and a 
  7.7   transit account to receive federal money under the act and money 
  7.8   from any source other than the trunk highway fund, the county 
  7.9   state-aid highway fund, and the municipal state-aid street 
  7.10  fund.  Money received under this section must be paid to the 
  7.11  state treasurer and credited to the transportation revolving 
  7.12  loan fund.  Money in the fund is annually appropriated to the 
  7.13  commissioner and does not lapse.  The fund must be credited with 
  7.14  investment income, and with repayments of principal and 
  7.15  interest, except for servicing fees assessed under sections 
  7.16  446A.04, subdivision 5, and 446A.11, subdivision 8. 
  7.17     Subd. 4.  [MANAGEMENT OF FUND AND ACCOUNTS.] The authority 
  7.18  shall manage and administer the transportation revolving loan 
  7.19  fund, the trunk highway revolving loan account, the county 
  7.20  state-aid revolving loan account, and the municipal state-aid 
  7.21  street revolving loan account.  For those purposes, the 
  7.22  authority may exercise all powers provided in this chapter. 
  7.23     Subd. 5.  [TRANSFER OF MONEY.] With the consent of the 
  7.24  transportation committee, the commissioner of transportation may 
  7.25  transfer money from the trunk highway revolving loan account to 
  7.26  the trunk highway fund, from the county state-aid highway 
  7.27  revolving loan account to the county state-aid highway fund, and 
  7.28  from the municipal state-aid street revolving loan account to 
  7.29  the municipal state-aid street fund. 
  7.30     Subd. 6.  [TRANSPORTATION COMMITTEE.] The transportation 
  7.31  committee may make loans to borrowers for purposes authorized by 
  7.32  the act.  Each project must be certified by the commissioner of 
  7.33  transportation before its consideration by the transportation 
  7.34  committee. 
  7.35     Subd. 7.  [APPLICATIONS.] Applicants for loans must submit 
  7.36  an application to the transportation committee on forms 
  8.1   prescribed by the transportation committee.  The applicant must 
  8.2   provide the following information: 
  8.3      (1) the estimated cost of the project and the amount of the 
  8.4   loan sought; 
  8.5      (2) other possible sources of funding in addition to loans 
  8.6   sought from the transportation revolving loan fund, the trunk 
  8.7   highway revolving loan account, the county state-aid highway 
  8.8   revolving loan account, or the municipal state-aid street 
  8.9   revolving loan account; 
  8.10     (3) the proposed methods and sources of funds to be used 
  8.11  for repayment of loans received; and 
  8.12     (4) information showing the financial status and ability of 
  8.13  the borrower to repay loans. 
  8.14     Subd. 8.  [CERTIFICATION OF PROJECTS.] In addition to 
  8.15  criteria prescribed by rule, the commissioner of transportation 
  8.16  shall consider the following information when evaluating 
  8.17  projects to certify for funding to the transportation committee: 
  8.18     (1) a description of the nature and purpose of the proposed 
  8.19  transportation project including an explanation of the need for 
  8.20  the project and the reasons why it is in the public interest; 
  8.21     (2) the relationship of the project to the area 
  8.22  transportation improvement program, the approved statewide 
  8.23  transportation improvement program, and to any other 
  8.24  transportation plans required under state or federal law; 
  8.25     (3) the estimated cost of the project and the amount of 
  8.26  loans sought; 
  8.27     (4) proposed sources of funding in addition to loans sought 
  8.28  from the transportation revolving loan fund, the trunk highway 
  8.29  revolving loan account, the county state-aid highway revolving 
  8.30  loan account, or municipal state-aid street revolving loan 
  8.31  account; 
  8.32     (5) the need for the project as part of the overall 
  8.33  transportation system; 
  8.34     (6) the overall economic impact of the project; and 
  8.35     (7) the extent to which completion of the project will 
  8.36  improve the movement of people and freight. 
  9.1      Subd. 9.  [LOAN CONDITIONS.] When making loans from the 
  9.2   transportation revolving loan fund, the trunk highway revolving 
  9.3   loan account, the county state-aid highway revolving loan 
  9.4   account, or the municipal state-aid street revolving loan 
  9.5   account, the transportation committee shall comply with the 
  9.6   conditions of the act.  In addition, a loan made under this 
  9.7   section must: 
  9.8      (1) bear interest at or below market rates or as otherwise 
  9.9   specified in federal law; 
  9.10     (2) have a repayment term not longer than 30 years; 
  9.11     (3) be fully amortized no later than 30 years after project 
  9.12  completion; 
  9.13     (4) be subject to repayment of principal and interest 
  9.14  beginning not later than five years after the facility financed 
  9.15  with a loan has been completed, or in the case of a highway 
  9.16  project, five years after the facility has opened to traffic; 
  9.17     (5) be subordinated to any other debt incurred to finance 
  9.18  the project, except any other loans made by the state or any 
  9.19  other public agency; and 
  9.20     (6) be made only after all federal environmental 
  9.21  requirements applicable to the project have been complied with 
  9.22  and all federal environmental requirements have been met. 
  9.23     Subd. 10.  [LOANS IN ANTICIPATION OF FUTURE 
  9.24  APPORTIONMENTS.] A loan may be made to a county, or to a 
  9.25  statutory or home rule charter city having a population of 5,000 
  9.26  or more, in anticipation of repayment of the loan from sums that 
  9.27  will be apportioned to a county from the county state-aid 
  9.28  highway fund under section 162.07 or to a city from the 
  9.29  municipal state-aid street fund under section 162.14. 
  9.30     Subd. 11.  [PAYMENT BY COUNTY OR CITY.] Notwithstanding the 
  9.31  allocation provisions of section 162.08 for counties, and the 
  9.32  apportionment provisions of section 162.14 for cities, sums 
  9.33  apportioned under section 162.13 to a statutory or home rule 
  9.34  charter city, or under section 162.07 to a county, that has loan 
  9.35  repayments due to the transportation revolving loan fund, the 
  9.36  trunk highway revolving loan account, the county state-aid 
 10.1   highway revolving loan account, or the municipal state-aid 
 10.2   street revolving loan account shall be paid by the commissioner 
 10.3   of transportation to the appropriate loan fund or account to 
 10.4   offset the loan repayments that are due. 
 10.5      Subd. 12.  [RULES OF TRANSPORTATION COMMITTEE AND 
 10.6   AUTHORITY.] The commissioner of the department of trade and 
 10.7   economic development shall adopt administrative rules specifying 
 10.8   the procedures that will be used for the administration of the 
 10.9   duties of the transportation committee and authority.  The rules 
 10.10  must include criteria, standards, and procedures that will be 
 10.11  used for making loans, determining interest rates to be charged 
 10.12  on loans, the amount of project financing to be provided, the 
 10.13  collateral that will be required, the requirements for dedicated 
 10.14  sources of revenue or income streams to ensure repayment of 
 10.15  loans, the length of repayment terms, and other rules necessary 
 10.16  to administer the loan program and manage the fund and the 
 10.17  accounts described in subdivision 4.  The commissioner of the 
 10.18  department of trade and economic development may adopt exempt 
 10.19  rules under section 14.386.  Permanent rules must be adopted 
 10.20  under chapter 14 within two years from the date of the adoption 
 10.21  of the exempt rules. 
 10.22     Subd. 13.  [AUTHORITY AND RULES OF DEPARTMENT.] The 
 10.23  commissioner of transportation shall establish, adopt rules for, 
 10.24  and implement a program to identify, assist with the development 
 10.25  of, and certify projects eligible for loans under the act to the 
 10.26  transportation committee.  The commissioner of transportation 
 10.27  may adopt exempt rules under section 14.386 to administer the 
 10.28  program, set criteria, standards, procedures, and priorities for 
 10.29  certifying projects to the transportation committee and for 
 10.30  other purposes necessary to implement the act.  The commissioner 
 10.31  of transportation must adopt permanent rules under chapter 14 
 10.32  within two years of the adoption of exempt rules.  Until rules 
 10.33  are adopted by the commissioner of transportation, the 
 10.34  commissioner of transportation may certify to the transportation 
 10.35  committee any project that has been reviewed through an approved 
 10.36  planning process that qualifies the project to be included in 
 11.1   the statewide transportation program or amended into the 
 11.2   statewide transportation improvement program. 
 11.3      Subd. 14.  [JOINT RULES.] The commissioner of the 
 11.4   department of trade and economic development and the 
 11.5   commissioner of transportation may adopt a single set of rules. 
 11.6      Sec. 11.  [EFFECTIVE DATE.] 
 11.7      Sections 1 to 9 are effective July 1, 1997.  Section 10, 
 11.8   subdivisions 1 to 11, are effective July 1, 1997.  Section 10, 
 11.9   subdivisions 12 to 14, are effective the day following final 
 11.10  enactment.