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S.F. No. 3878 - Federal TIFIA Loan
 
Author: Senator Nick A. Frentz
 
Prepared By: Alexis C. Stangl, Senate Counsel (651/296-4397)
 
Date: March 9, 2020



 

S. F. No. 3878 allows the commissioner of transportation to enter into a loan agreement with the federal government pursuant to the Transportation Infrastructure Finance and Innovation Act (TIFIA) for one road construction project. This bill also provides repayment for the loan by using existing fees on overweight vehicles.

Section 1, subdivision 1. Security for federal loan agreement. A 2010 law authorized the commissioner of transportation to apply for a loan under the Transportation Infrastructure Finance and Innovation Act (TIFIA). A loan entered into pursuant to this law must be paid from the loan fund established in subdivision 4. The loan is not public debt and the full faith and credit of the state is not pledged for the repayment.

Subdivision 2. Special revenue account established; nondedicated permit fees defined. A new special revenue account is established in the state treasury to receive deposits of the nondedicated transportation permit fees. These fees are for certain types of overweight or oversize vehicle permits.

Subdivision 3. Fees credited to special revenue account. During the period in which the loan authorized in subdivision 1 is outstanding, all nondedicated transportation fees are credited to the special revenue account. Money in the account is transferred to the loan fund established in subdivision 4 at the time and in the amount determined by the commissioners of transportation and management and budget. Money in the account that is not required to be transferred to the loan fund must be annually transferred to the trunk highway fund.

Subdivision 4. Loan fund established. A special loan fund is established. Money in the fund is used to pay the principal and interest on the loan authorized by subdivision 1.

Subdivision 5. Covenants and agreements. The commissioners of transportation and management and budget may enter into agreements regarding the loan agreement.

Subdivision 6. Applicability. Subdivisions 2 and 3 do not apply to any permit fee that is determined to be a tax.

Subdivision 7. Waiver of immunity. The waiver of immunity provided by the state applies to the loan and ant related contracts.

This section is effective the day following final enactment.

Section 2. TIFIA Pilot Program. The 2010 law that authorizes this type of loan agreement is amended so that an amount sufficient to repay the loan is annually appropriated from the loan fund created in section 1, subdivision 4.

ACS/syl

 

 
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