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Revisor of Statutes Menu

SF 705

as introduced - 86th Legislature (2009 - 2010) Posted on 06/21/2017 11:31am

KEY: stricken = removed, old language. underscored = added, new language.



Version List Authors and Status

A bill for an act
relating to transportation; providing for funding of transportation infrastructure
projects through the cooperation of state-chartered banks; imposing penalties;
proposing coding for new law in Minnesota Statutes, chapter 161.


Section 1.


Subdivision 1.


(a) The funding of all state, county, statutory or home
rule charter city, and town highways, streets, roads, bridges, transit systems, and other
transportation infrastructure projects must be achieved in lieu of taxation or bonding
through the use of state-chartered banks to create money as provided in this section.

(b) For purposes of this section, "state-chartered bank" means a bank chartered
in Minnesota.

Subd. 2.

Use of project money.

The governmental agency sponsoring a project
referenced in subdivision 1 shall submit documentation of it to the commissioner of
management and budget for funding. The documentation must contain the accepted,
verified, and authorized project bid. The commissioner of management and budget shall
assign the project a unique project number and shall arrange funding of the authorized bid
value with the wealth-based money authorized by this section.

Subd. 3.

Origination and movement of project money.

(a) The commissioner
of management and budget shall notify all state-chartered banks of the project number
and its total bid value. The bid value must be divided among all state-chartered banks in
proportion to their capital and surplus as of the due date of their financial reports submitted
to the commissioner of commerce under section 48.48, for the most recent reporting
period that ended at least 90 days before the date of notification to the state-chartered
banks regarding that project. Using the accepted ability of banks to create money, each
state-chartered bank shall create money equal to its share of the bid value of each project.

(b) Each state-chartered bank shall then electronically transfer this money to the
commissioner of management and budget.

(c) The commissioner of management and budget shall then electronically transfer
this money as payment under the terms of the project contract into a checking account
maintained by the contractor in a state-chartered bank. The commissioner shall make
the payments only at the direction of the governmental agency for which the project
is performed.

Subd. 4.

Direction to bank examiners.

The state-chartered banks are free of any
reserve requirements affected by the creation of money required under this section; this
money is deemed to be an asset to the state-chartered bank, to the state, and to the people
of this state, and not as a liability to anyone.

Subd. 5.

Auditing; public transparency.

The state auditor and legislative auditor
shall ensure an ongoing and accurate accounting for and of the total amount of this money
created to fund transportation infrastructure projects under this section. The state auditor
shall update this accounting on the first business day of the third week of each month and
make it available online to all Minnesota residents.

Subd. 6.

Criminal penalty for compliance or fraud.

(a) Any noncompliance or
fraud relating to this section by any officer or employee of a state-chartered bank; any
official or employee of the state, county, statutory or home rule charter city, or town; or
any officer or employee of a contractor or subcontractor is a felony and is subject to
the penalties provided in paragraph (b).

(b) Any person found guilty of noncompliance or fraud relating to this section is
subject to a fine of up to $100,000,000 and imprisonment of up to 40 years, or both.

Subd. 7.

Pilot project; first real project.

(a) The commissioners of management
and budget and transportation shall implement and administer a pilot project, which must
be completed within 90 days after the effective date of this section, to test and ensure the
successful implementation of all procedures required by this section.

(b) The first project after the pilot project must be J. Edward Anderson's Personal
Rapid Transportation System, also called the Intelligent Transportation System.

Subd. 8.

Cooperation required.

The commissioners of commerce, transportation,
and management and budget shall work together with the state-chartered banking system
to monetize the state's transportation infrastructure system with wealth-based debt-free
money through the procedure provided in this section.


This section, except subdivision 7, paragraph (a), and
subdivision 8, is effective January 1, 2010, and applies to all projects for which bids are
solicited on or after that date. Subdivision 7, paragraph (a), and subdivision 8 are effective
the day following final enactment.

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