1.1 	A bill for an act
1.2 	proposing an amendment to the Minnesota Constitution,
1.3 	article XI, section 7; article XIV, section 10, by
1.4 	adding a section; imposing certain requirements on
1.5 	future bonding bills, allocating revenue from motor
1.6 	vehicle sales tax, and increasing and modifying use of
1.7 	motor fuel tax; imposing requirements on expenditure
1.8 	of certain federal funds; authorizing issuance of
1.9 	$750,000,000 in state trunk highway bonds; dedicating
1.10 	bond proceeds and state share of motor fuel tax
1.11 	increase to designated major transportation projects;
1.12 	creating right-of-way advance acquisition loan account
1.13 	in transportation revolving loan fund; requiring pilot
1.14 	projects, studies, and reports on municipal consent,
1.15 	wetland mitigation, environmental involvement,
1.16 	environmental permitting, performance-based highway
1.17 	contract specification, commodity corridors, transit
1.18 	efficiencies, and highway jurisdiction; authorizing
1.19 	state agencies to be designated as charter agencies;
1.20 	appropriating money; amending Minnesota Statutes 2004,
1.21 	sections 161.04, by adding a subdivision; 161.23,
1.22 	subdivision 5; 297B.09, subdivision 1; 446A.085,
1.23 	subdivisions 3, 8, by adding a subdivision; proposing
1.24 	coding for new law in Minnesota Statutes, chapters
1.25 	16A; 161; 174.
1.26 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.27 	ARTICLE 1
1.28 	CONSTITUTIONAL AMENDMENT

1.29 	Section 1. CONSTITUTIONAL AMENDMENT PROPOSED.
 1.30 	An amendment to the Minnesota Constitution is proposed to
1.31 	the people.  If the amendment is adopted, article XI, section 7,
1.32 	will read:

1.33 	Sec. 7. Public debt other than certificates of
1.34 	indebtedness authorized in section 6 shall be evidenced by the
1.35 	issuance of bonds of the state.  All bonds issued under the
2.1 	provisions of this section shall mature not more than 20 years
2.2 	from their respective dates of issue and each law authorizing
2.3 	the issuance of bonds shall distinctly specify the purposes
2.4 	thereof and the maximum amount of the proceeds authorized to be
2.5 	expended for each purpose.  A separate and special state bond
2.6 	fund shall be maintained on the official books and records.
2.7 	When the full faith and credit of the state has been pledged for
2.8 	the payment of bonds, the state auditor shall levy each year on
2.9 	all taxable property within the state a tax sufficient with the
2.10 	balance then on hand in the fund to pay all principal and
2.11 	interest on bonds issued under this section due and to become
2.12 	due within the ensuing year and to and including July 1 in the
2.13 	second ensuing year.  The legislature by law may appropriate
2.14 	funds from any source to the state bond fund.  The amount of
2.15 	money actually received and on hand pursuant to appropriations
2.16 	prior to the levy of the tax in any year shall be used to reduce
2.17 	the amount of tax otherwise required to be levied.
 2.18 	Any law enacted between July 1, 2008, and June 30, 2016,
2.19 	that authorizes bonds to be issued under this section in an
2.20 	aggregate amount exceeding $130,000,000 must provide that at
2.21 	least $130,000,000 of the bonds so authorized must be for
2.22 	transportation purposes, as follows:  23 percent for capital
2.23 	improvements to local streets and highways, 52.5 percent for
2.24 	capital assistance to public transit systems within the
2.25 	metropolitan area as defined by law, 1.5 percent for capital
2.26 	assistance to public transit systems outside the metropolitan
2.27 	area, and 23 percent for capital improvements to air
2.28 	transportation facilities, port facilities, and public or
2.29 	privately owned railroads.  The requirement of this paragraph
2.30 	may be applied to only one such law in any biennium.
2.31 	article XIV, section 10, will read:

2.32 	Sec. 10. The legislature may levy an excise tax on any
2.33 	means or substance used for propelling vehicles on the public
2.34 	highways of this state or on the business of selling it.  The
2.35 	proceeds of the tax shall be paid into the highway user tax
2.36 	distribution fund.
 3.1 	Until June 30, 2016, the rate of tax under this section on
3.2 	gasoline and special fuel, other than alternative fuels as
3.3 	defined by law, may not be less than 25 cents per gallon.  The
3.4 	state shall impose this rate beginning January 1, 2007.  Of the
3.5 	revenue allocated to the trunk highway fund by section 5 and by
3.6 	law from the tax imposed under this section, at least an amount
3.7 	attributable to five cents of the tax must be expended solely
3.8 	for major trunk highway improvement and safety projects as
3.9 	defined by law.
3.10 	article XIV will be amended by adding a section to read:
3.11 	Sec. 12.  Beginning July 1, 2007, all revenue from a tax
3.12 	imposed by the state on the sale of new and used motor vehicles
3.13 	must be allocated as follows:
3.14 	(1) 32 percent must be allocated to the highway user tax
3.15 	distribution fund;
3.16 	(2) 43 percent must be appropriated for capital and
3.17 	operating assistance to public transit systems within the
3.18 	metropolitan area as defined by law;
3.19 	(3) five percent must be appropriated for capital and
3.20 	operating assistance to public transit systems outside the
3.21 	metropolitan area as defined by law; and 
3.22 	(4) 20 percent may be appropriated for other purposes as
3.23 	provided by law.

3.24 	Sec. 2. SUBMISSION TO VOTERS.
 3.25 	The constitutional amendment proposed in section 1 must be
3.26 	presented to the people at the 2006 general election.  The
3.27 	question submitted must be:
3.28 	"Shall the Minnesota Constitution be amended to:
3.29 	(1) require that once each biennium any law enacted in
3.30 	fiscal years 2008 through 2016 inclusive to authorize state
3.31 	bonding of at least $130,000,000 must allocate at least
3.32 	$130,000,000 of bond proceeds to transportation purposes
3.33 	including local streets and highways, public transit capital
3.34 	assistance, air transportation facilities, port facilities, and
3.35 	railroads;
3.36 	(2) dedicate all revenue from the state motor vehicle sales
4.1 	tax as follows:
4.2 	(i) 32 percent to the highway user tax distribution fund;
4.3 	(ii) 43 percent to capital and operating assistance to
4.4 	public transit systems within the metropolitan area as defined
4.5 	by law;
4.6 	(iii) five percent to capital and operating assistance to
4.7 	public transit systems outside the metropolitan area as defined
4.8 	by law; and 
4.9 	(iv) 20 percent for other purposes as provided by law; and 
4.10 	(3) increase the state tax on gasoline and special fuel,
4.11 	other than alternative fuels, from 20 to 25 cents per gallon
4.12 	effective January 1, 2007, and dedicate the revenue to the state
4.13 	from five cents of the tax to major trunk highway improvement
4.14 	projects? 
4.15 	Yes .......
4.16 	                                   No ........" 

4.17 	ARTICLE 2
4.18 	TRANSPORTATION FUNDING

4.19 	Section 1. [16A.576] APPROPRIATIONS FOR TRANSIT
4.20 	OPERATIONS PROHIBITED.
4.21 	On and after July 1, 2007, no appropriations may be made
4.22 	from the general fund for operating assistance to public transit
4.23 	systems.

4.24 	Sec. 2. Minnesota Statutes 2004, section 161.04, is
4.25 	amended by adding a subdivision to read:
4.26 		Subd. 5.Allocation of additional funds. In fiscal year
4.27 	2006 and each subsequent fiscal year, the commissioner, to the
4.28 	extent permitted under federal law, must allocate the first
4.29 	$160,000,000 in state road construction expenditures in excess
4.30 	of state road construction expenditures in fiscal year 2005 to
4.31 	projects that are primarily intended to enhance mobility,
4.32 	improve safety, and address traffic congestion.

4.33 	Sec. 3. [161.042] MAJOR PROJECTS ACCOUNT.
4.34 		Subdivision 1.Account created. A major project account
4.35 	is created in the trunk highway fund.  The commissioner shall
4.36 	deposit in the account:
5.1 	(1) proceeds from the sale of trunk highway bonds
5.2 	authorized under section 12;
5.3 	(2) from January 1, 2007, through June 30, 2017, all
5.4 	revenue to the trunk highway fund that is attributable to the
5.5 	increases in motor fuel tax rates over rates in effect on
5.6 	January 1, 2005; and 
5.7 	(3) money credited to the account under article 5, section
5.8 	3.
5.9 		Subd. 2.Appropriations. Money in the account is
5.10 	appropriated to the commissioner as follows:
5.11 	(a) Money deposited in the account under subdivision 1,
5.12 	clause (1), is appropriated in the amounts of $150,000,000 on
5.13 	the first day of fiscal years 2007 through 2011 inclusive.  If
5.14 	bond proceeds are not available on the first day of any fiscal
5.15 	year, the appropriation under this paragraph is effective on the
5.16 	day following the day that bond proceeds are available.
5.17 	(b) Money deposited in the account under subdivision 1,
5.18 	clause (2), is appropriated to the commissioner.
5.19 		Subd. 3.Major projects. Until June 30, 2017, the
5.20 	commissioner shall spend all money appropriated under
5.21 	subdivision 2 for real property acquisition for, and preliminary
5.22 	engineering, design, construction, and reconstruction of, major
5.23 	trunk highway improvement and safety projects as defined in
5.24 	section 161.0421.

5.25 	Sec. 4. [161.0421] MAJOR TRUNK HIGHWAY IMPROVEMENT AND
5.26 	SAFETY PROJECTS.
5.27 		Subdivision 1.Fiscal years 2008 through 2012. For
5.28 	purposes of the Minnesota Constitution, article XIV, section 10,
5.29 	from July 1, 2007, through June 30, 2012:
5.30 	(a) Major trunk highway improvement and safety projects in
5.31 	the Department of Transportation's metropolitan district include:
5.32 	(1) the addition of new lanes and a reconstruction of
5.33 	marked Interstate Highway 35E from University Avenue to Maryland
5.34 	Avenue, including reconstruction of the Cayuga bridge;
5.35 	(2) the addition of a high-occupancy vehicle and transit
5.36 	lane on marked Interstate Highway 35W from 46th Street to marked
6.1 	Interstate Highway 94, including the Lake Street interchange;
6.2 	(3) the addition of two lanes to marked Interstate Highway
6.3 	494 from marked Trunk Highway 55 to marked Interstate Highway
6.4 	94;
6.5 	(4) the addition of two lanes to marked Trunk Highway 100
6.6 	between 36th Street and Cedar Lake Road;
6.7 	(5) completion of marked Trunk Highway 610 as a four-lane
6.8 	freeway from marked Trunk Highway 169 to marked Interstate
6.9 	Highway 94;
6.10 	(6) bus rapid transit on marked Interstate Highway 35W from
6.11 	Lakeville to Minneapolis;
6.12 	(7) the Cedar Avenue bus rapid transit corridor from
6.13 	Lakeville to Minneapolis;
6.14 	(8) the northwest busway from Brooklyn Park to Minneapolis;
6.15 	and 
6.16 	(9) express commuter bus corridors as identified in the
6.17 	Metropolitan Council's transportation policy plan.
6.18 	Total spending on projects in clauses (6) and (7) during the
6.19 	period may not exceed $50,000,000.
6.20 	(b) Major trunk highway improvement and safety projects in
6.21 	other Department of Transportation districts include:
6.22 	(1) reconstruction of the marked Interstate Highway 35
6.23 	interchange at Mesaba Avenue in Duluth;
6.24 	(2) a new river crossing on marked Trunk Highway 24 between
6.25 	marked Interstate Highway 94 and marked Trunk Highway 10;
6.26 	(3) reconstruction of marked Trunk Highway 1 between marked
6.27 	Trunk Highway 169 and Tower;
6.28 	(4) construction of passing lanes on marked Trunk Highway 1
6.29 	between Tower and Ely;
6.30 	(5) reconstruction of marked Trunk Highway 2 in Grand
6.31 	Rapids;
6.32 	(6) reconstruction of marked Trunk Highway 10 in St. Cloud
6.33 	as a freeway;
6.34 	(7) completion of phase 2 of the marked Trunk Highway 10
6.35 	project in Detroit Lakes;
6.36 	(8) construction of new lanes on marked Trunk Highway 14
7.1 	between Owatonna and Waseca, and at the west edge of North
7.2 	Mankato;
7.3 	(9) reconstruction of marked Trunk Highway 19 in Redwood
7.4 	Falls;
7.5 	(10) construction of new lanes on marked Trunk Highway 19,
7.6 	between marked Interstate Highway 35 and Northfield;
7.7 	(11) construction of the Paynesville bypass on marked Trunk
7.8 	Highway 23;
7.9 	(12) construction of passing lanes on marked Trunk Highway
7.10 	53 between Cook and International Falls;
7.11 	(13) construction of new lanes on marked Trunk Highway 60
7.12 	from north of Bigelow to Worthington;
7.13 	(14) reconstruction of marked Trunk Highway 61 between Two
7.14 	Harbors and Silver Cliff, between Gooseberry and Champins,
7.15 	between Cook County Highway 34 and the Cascade River, and from
7.16 	Beaver Bay to Silver Bay;
7.17 	(15) construction of new lanes on marked Trunk Highway 63
7.18 	between Stewartville and marked Trunk Highway 16;
7.19 	(16) reconstruction of marked Trunk Highway 71 south of
7.20 	Willmar;
7.21 	(17) construction of a three-lane expressway on marked
7.22 	Trunk Highway 71 between County State-Aid Highway 9 and marked
7.23 	Trunk Highway 2;
7.24 	(18) reconstruction of marked Trunk Highway 75 in Moorhead;
7.25 	(19) reconstruction of marked Trunk Highway 169 from Aitkin
7.26 	to north of its intersection with marked Trunk Highway 210;
7.27 	(20) construction of additional lanes on marked Trunk
7.28 	Highway 12 between marked Trunk Highway 25 and the Wright County
7.29 	line;
7.30 	(21) reconstruction of marked Trunk Highway 169 from north
7.31 	of marked Trunk Highway 53 to marked Trunk Highway 1;
7.32 	(22) construction of the intersection on marked Trunk
7.33 	Highway 52 at County State-Aid Highway 9; and 
7.34 	(23) construction of the Paynesville bypass on marked Trunk
7.35 	Highway 23.
7.36 		Subd. 2.Fiscal years 2013 through 2017. For purposes of
8.1 	the Minnesota Constitution, article XIV, section 10, from July
8.2 	1, 2013, through June 30, 2017:
8.3 	(a) Major trunk highway improvement projects in the
8.4 	Department of Transportation's metropolitan district include:
8.5 	(1) completion of construction of additional lanes on
8.6 	marked Interstate Highway 494 from marked Trunk Highway 55 to
8.7 	marked Interstate Highway 94;
8.8 	(2) reconstruction and additional capacity surrounding the
8.9 	intersection of marked Interstate Highway 494 and marked
8.10 	Interstate Highway 35W;
8.11 	(3) construction of additional lanes on marked Interstate
8.12 	Highway 694 from marked Interstate Highway 35W to Rice Street;
8.13 	(4) construction of an overpass on marked Trunk Highway 10
8.14 	at Fairoak Avenue;
8.15 	(5) construction of an interchange on marked Trunk Highway
8.16 	10 at Thurston Avenue;
8.17 	(6) construction of a six-lane expressway on marked Trunk
8.18 	Highway 13 between marked Trunk Highway 801B and marked
8.19 	Interstate Highway 35W;
8.20 	(7) construction of interchanges on marked Trunk Highway 36
8.21 	at McKnight Road and Hadley Avenue;
8.22 	(8) reconstruction of marked Trunk Highway 61 at the
8.23 	Hastings bridge; and 
8.24 	(9) construction of an interchange on marked Trunk Highway
8.25 	65 at County State-Aid Highway 242.
8.26 	(b) Major trunk highway improvement projects in other
8.27 	Department of Transportation districts include:
8.28 	(1) reconstruction of a bridge on marked Interstate Highway
8.29 	90 at LaCrescent-Dresbach;
8.30 	(2) construction of additional lanes on marked Trunk
8.31 	Highway 3 between Faribault and Northfield;
8.32 	(3) construction of the Big Lake bypass on marked Trunk
8.33 	Highway 10;
8.34 	(4) construction of additional lanes on marked Trunk
8.35 	Highway 10 in Wadena;
8.36 	(5) construction of an interchange and the Royalton bypass
9.1 	on marked Trunk Highway 10;
9.2 	(6) construction of interchanges on marked Trunk Highway 10
9.3 	in Benton county;
9.4 	(7) construction of safety improvements on marked Trunk
9.5 	Highway 11 between Roseau and Baudette;
9.6 	(8) construction of additional lanes on marked Trunk
9.7 	Highway 23 between Richmond and Paynesville;
9.8 	(9) construction of additional lanes on marked Trunk
9.9 	Highway 14 between Dodge Center and Owatonna;
9.10 	(10) construction of additional lanes on marked Trunk
9.11 	Highway 23 between Marshall and marked Interstate Highway 90;
9.12 	(11) reconstruction of marked Trunk Highway 25 between
9.13 	County State-Aid Highway 12 and marked Trunk Highway 55 in
9.14 	Buffalo;
9.15 	(12) reconstruction and construction of shoulders on marked
9.16 	Trunk Highway 29 between Alexandria and Parker's Prairie;
9.17 	(13) widening of marked Trunk Highway 40 between the
9.18 	Willmar airport and marked Trunk Highway 12;
9.19 	(14) construction of an interchange on marked Trunk Highway
9.20 	52 at marked Trunk Highway 57/County Highway 8;
9.21 	(15) construction of passing lanes on marked Trunk Highway
9.22 	59 between marked Trunk Highway 1 and marked Trunk Highway 2;
9.23 	(16) construction of additional lanes on marked Trunk
9.24 	Highway 60 between Windom and St. James;
9.25 	(17) reconstruction of marked Trunk Highway 61 between
9.26 	Tofte and County State-Aid Highway 2;
9.27 	(18) reconstruction of marked Trunk Highway 61 from three
9.28 	miles north of marked Trunk Highway 1 to four miles north of the
9.29 	Cook County line;
9.30 	(19) construction of additional lanes on marked Trunk
9.31 	Highway 63 between Rochester and marked Trunk Highway 247;
9.32 	(20) construction of an intersection on marked Trunk
9.33 	Highway 169 at Main Street in Elk River;
9.34 	(21) construction of new interchanges on marked Trunk
9.35 	Highway 169 south of Mankato; and 
9.36 	(22) reconstruction of marked Trunk Highway 371 between
10.1 	marked Trunk Highway 210 and Nisswa.

10.2 	Sec. 5. Minnesota Statutes 2004, section 161.23,
10.3 	subdivision 5, is amended to read:
10.4 		Subd. 5.Receipts paid into trunk highway fund.  Money
10.5 	received from the sale of such lands and properties less any fee
10.6 	paid under subdivision 2a must be paid into the trunk
10.7 	highway right-of-way advance acquisition loan account in the
10.8 	transportation revolving loan fund.

10.9 	Sec. 6. [174.53] METROPOLITAN TRANSIT IMPROVEMENT FUND.
10.10 		Subdivision 1.Fund created. A metropolitan transit
10.11 	improvement fund is created in the state treasury, consisting of
10.12 	(1) money credited to the fund under section 297B.09,
10.13 	subdivision 1, and (2) proceeds from bond sales designated by
10.14 	law for deposit in the fund.
10.15 		Subd. 2.Uses of fund. (a) Money in the fund may be
10.16 	appropriated by law only for:
10.17 	(1) operating assistance for transit operated by or
10.18 	financially assisted by the Metropolitan Council; and 
10.19 	(2) major transit improvement projects as defined in
10.20 	subdivision 3, including both capital and operating costs.
10.21 	(b) Neither the Metropolitan Council nor the commissioner
10.22 	of transportation may undertake any major transit improvement
10.23 	project unless the council or commissioner determines that at
10.24 	least 15 percent of the total capital cost of the project will
10.25 	be paid from local funds.
10.26 		Subd. 3.Major transit improvement projects. For
10.27 	purposes of this section, "major transit improvement projects"
10.28 	means:
10.29 	(1) the Northstar commuter rail line from Big Lake to
10.30 	Minneapolis;
10.31 	(2) the central corridor light rail transit line from
10.32 	Minneapolis to St. Paul;
10.33 	(3) the Cedar Avenue bus rapid transit corridor from
10.34 	Lakeville to Minneapolis;
10.35 	(4) the Northwest busway from Brooklyn Park to Minneapolis;
10.36 	(5) bus rapid transit on marked Interstate Highway 35W
11.1 	between Minneapolis and Lakeville; and 
11.2 	(6) planning for tier II transit way projects as identified
11.3 	in the Metropolitan Council's transportation policy plan.

11.4 	Sec. 7. Minnesota Statutes 2004, section 297B.09,
11.5 	subdivision 1, is amended to read:
11.6 		Subdivision 1.Deposit of revenues.  (a) Money collected
11.7 	and received under this chapter must be deposited as provided in
11.8 	this subdivision.
11.9 	(b) From July 1, 2002, to June 30, 2003, 32 percent of the
11.10 	money collected and received must be deposited in the highway
11.11 	user tax distribution fund, 20.5 percent must be deposited in
11.12 	the metropolitan area transit fund under section 16A.88, and
11.13 	1.25 percent must be deposited in the greater Minnesota transit
11.14 	fund under section 16A.88.  The remaining money must be
11.15 	deposited in the general fund.
11.16 	(c) From July 1, 2003, to June 30, 2007, 30 percent of the
11.17 	money collected and received must be deposited in the highway
11.18 	user tax distribution fund, 21.5 percent must be deposited in
11.19 	the metropolitan area transit fund under section 16A.88, 1.43
11.20 	percent must be deposited in the greater Minnesota transit fund
11.21 	under section 16A.88, 0.65 percent must be deposited in the
11.22 	county state-aid highway fund, and 0.17 percent must be
11.23 	deposited in the municipal state-aid street fund.  The remaining
11.24 	money must be deposited in the general fund.
11.25 	(d) (c) On and after July 1, 2007, 32 percent of the money
11.26 	collected and received must be deposited in the highway user tax
11.27 	distribution fund, 20.5 percent must be deposited in the
11.28 	metropolitan area transit fund under section 16A.88, 22.5
11.29 	percent must be deposited in the metropolitan transit
11.30 	improvement fund under section 174.53,and 1.25 five percent
11.31 	must be deposited in the greater Minnesota transit fund under
11.32 	section 16A.88.  The remaining money must be deposited in the
11.33 	general fund.

11.34 	Sec. 8. Minnesota Statutes 2004, section 446A.085,
11.35 	subdivision 3, is amended to read:
11.36 		Subd. 3.Establishment of fund.  A transportation
12.1 	revolving loan fund is established to make loans for the
12.2 	purposes described in subdivision 2.  A highway account is
12.3 	established in the fund for highway projects eligible under
12.4 	United States Code, title 23.  A transit account is established
12.5 	in the fund for transit capital projects eligible under United
12.6 	States Code, title 49.  A state funds general loan account is
12.7 	established in the fund for transportation projects eligible
12.8 	under state law. A right-of-way advance acquisition loan
12.9 	account is established in the fund for projects described in
12.10 	subdivision 10a.Other accounts may be established in the fund
12.11 	as necessary for its management and administration.  The
12.12 	transportation revolving loan fund receives federal money under
12.13 	the act and money from any source.  Money received under this
12.14 	section must be paid to the commissioner of finance and credited
12.15 	to the transportation revolving loan fund.  Money in the fund is
12.16 	annually appropriated to the authority and does not lapse.  The
12.17 	fund must be credited with investment income, and with
12.18 	repayments of principal and interest, except for servicing fees
12.19 	assessed under sections 446A.04, subdivision 5, and 446A.11,
12.20 	subdivision 8.

12.21 	Sec. 9. Minnesota Statutes 2004, section 446A.085,
12.22 	subdivision 8, is amended to read:
12.23 		Subd. 8.Certification of projects. (a) Except as
12.24 	provided in paragraph (b),the commissioner of transportation
12.25 	shall consider the following information when evaluating
12.26 	projects to certify for funding to the Transportation Committee:
12.27 	(1) a description of the nature and purpose of the proposed
12.28 	transportation project including an explanation of the need for
12.29 	the project and the reasons why it is in the public interest;
12.30 	(2) the relationship of the project to the area
12.31 	transportation improvement program, the approved statewide
12.32 	transportation improvement program, and to any transportation
12.33 	plans required under state or federal law;
12.34 	(3) the estimated cost of the project and the amount of
12.35 	loans sought;
12.36 	(4) proposed sources of funding in addition to loans sought
13.1 	from the transportation revolving loan fund;
13.2 	(5) the need for the project as part of the overall
13.3 	transportation system;
13.4 	(6) the overall economic impact of the project; and
13.5 	(7) the extent to which completion of the project will
13.6 	improve the movement of people and freight.
13.7 	(b) For loans made from the right-of-way advance
13.8 	acquisition loan account, the commissioner of transportation
13.9 	shall consider the following information when evaluating
13.10 	projects to certify for funding to the Transportation Committee:
13.11 	(1) a description of the highway project, including
13.12 	estimated schedules and costs, for which advance acquisition of
13.13 	right-of-way is sought;
13.14 	(2) the importance of the project as measured by the
13.15 	criteria in paragraph (a), clauses (2) and (5) through (7);
13.16 	(3) other sources of funding available for the acquisition;
13.17 	(4) the necessity of preserving right-of-way for the
13.18 	project as a means of reducing overall project costs and
13.19 	preventing incompatible land uses;
13.20 	(5) other options available for right-of-way preservation;
13.21 	and 
13.22 	(6) the overall cost-effectiveness of advance right-of-way
13.23 	acquisition for the project.

13.24 	Sec. 10. Minnesota Statutes 2004, section 446A.085, is
13.25 	amended by adding a subdivision to read:
13.26 		Subd. 10a.Right-of-way advance acquisition loan
13.27 	account. (a) Loans from the right-of-way advance acquisition
13.28 	loan account may be made to the state, counties, towns, and
13.29 	statutory and home rule charter cities for the purchase of
13.30 	property within the right-of-way of a state trunk highway shown
13.31 	on an official map adopted pursuant to section 394.361 or
13.32 	462.359.
13.33 	(b) Loans under this subdivision may be made only:
13.34 	(1) to accelerate the acquisition of primarily undeveloped
13.35 	property when there is a reasonable probability that the
13.36 	property will increase in value before highway construction, and
14.1 	to update an expired environmental impact statement on a project
14.2 	for which the right-of-way is being purchased;
14.3 	(2) to avert the imminent conversion or the granting of
14.4 	approvals that would allow the conversion of property to uses
14.5 	that would jeopardize its availability for highway construction;
14.6 	or 
14.7 	(3) to take advantage of open market opportunities when
14.8 	developed properties become available for sale, provided all
14.9 	parties involved are agreeable to the sale and funds are
14.10 	available.
14.11 	(c) A private property owner whose property is purchased
14.12 	with proceeds of a loan under this subdivision may elect to
14.13 	receive the purchase price either in a lump sum or in not more
14.14 	than four annual installments without interest on the deferred
14.15 	installments.  If the purchase agreement provides for
14.16 	installment payments, the loan may be made in installments
14.17 	corresponding to those in the purchase agreement.  The recipient
14.18 	of an acquisition loan shall convey the property for the
14.19 	construction of the highway at the same price that the recipient
14.20 	paid for the property.  The price may include the costs of
14.21 	preparing environmental documents that were required for the
14.22 	acquisition and that were paid for with money that the recipient
14.23 	received from the account.  Upon notification by the
14.24 	commissioner to the loan recipient that the plan to construct
14.25 	the highway has been abandoned or the anticipated location of
14.26 	the highway changed, the recipient shall sell the property at
14.27 	market value in accordance with the procedures required for the
14.28 	disposition of the property.
14.29 	(d) All rents and other money received by the loan
14.30 	recipient because of the recipient's ownership of the property
14.31 	and all proceeds from the conveyance or sale of the property
14.32 	must be paid to the commissioner for deposit in the account.
14.33 	Amounts so received may be applied to repayment of the loan.

14.34 	Sec. 11. APPROPRIATION.
 14.35 	$9,000,000 is appropriated from the major projects account
14.36 	in the trunk highway fund to the transportation revolving loan
15.1 	fund in fiscal year 2006 for deposit in the right-of-way advance
15.2 	acquisition loan account.

15.3 	Sec. 12. TRUNK HIGHWAY BONDS; MAJOR PROJECTS.
 15.4 	The commissioner of finance shall sell and issue trunk
15.5 	highway bonds of the state in an amount up to $750,000,000 in
15.6 	the manner, upon the terms, and with the effect prescribed by
15.7 	Minnesota Statutes, sections 167.50 to 167.52, and by the
15.8 	Minnesota Constitution, article XIV, section 11, at the times
15.9 	and in the amounts requested by the commissioner of
15.10 	transportation.  The proceeds of the bonds, except accrued
15.11 	interest and any premium received on the sale of the bonds, must
15.12 	be credited to the major projects account in the trunk highway
15.13 	fund.

15.14 	Sec. 13. TRUNK HIGHWAY BONDS; ROAD CONSTRUCTION.
 15.15 		Subdivision 1.Appropriation. $50,000,000 is
15.16 	appropriated from the bond proceeds account in the trunk highway
15.17 	fund to the commissioner of transportation for delivery of the
15.18 	commissioner's state road construction program.
15.19 		Subd. 2.Bond sale authorization. The commissioner of
15.20 	finance shall sell and issue trunk highway bonds of the state in
15.21 	an amount up to $50,000,000 in the manner, upon the terms, and
15.22 	with the effect prescribed by Minnesota Statutes, sections
15.23 	167.50 to 167.52, and by the Minnesota Constitution, article
15.24 	XIV, section 11, at the times and in the amounts requested by
15.25 	the commissioner of transportation.  The proceeds of the bonds,
15.26 	except accrued interest and any premium received on the sale of
15.27 	the bonds, must be credited to the bond proceeds account in the
15.28 	trunk highway fund.

15.29 	Sec. 14. GENERAL OBLIGATION BONDS; TRANSIT.
 15.30 		Subdivision 1.Appropriations. (a) $34,000,000 is
15.31 	appropriated from the bond proceeds fund to the Metropolitan
15.32 	Council on the first day of fiscal years 2008, 2010, 2012, 2014,
15.33 	and 2016 for implementation of metropolitan transit improvement
15.34 	projects as defined in Minnesota Statutes, section 174.53,
15.35 	subdivision 3.  The council may make grants from this
15.36 	appropriation to the commissioner of transportation for commuter
16.1 	rail projects and trunk highway improvements related to
16.2 	metropolitan transit improvement projects.
16.3 	(b) $1,000,000 is appropriated from the bond proceeds
16.4 	account to the commissioner of transportation on the first day
16.5 	of fiscal years 2008, 2010, 2012, 2014, and 2016 for capital
16.6 	assistance to public transit systems outside the seven-county
16.7 	metropolitan area.
16.8 		Subd. 2.Authorization. To provide the money
16.9 	appropriated by subdivision 1 from the bond proceeds fund, the
16.10 	commissioner of finance shall sell and issue bonds of the state
16.11 	in an amount up to $35,000,000 in the manner, on the terms, and
16.12 	with the effect prescribed by Minnesota Statutes, sections
16.13 	16A.631 to 16A.675, and by the Minnesota Constitution, article
16.14 	XI, sections 4 to 7.

16.15 	Sec. 15. EFFECTIVE DATE.
 16.16 	Sections 3 to 5, 8 to 12, and 14 are effective July 1, 2007.
16.17 	Sections 1, 2, 6, and 7 are effective July 1, 2007, except that
16.18 	if the constitutional amendment proposed in article 1 is not
16.19 	adopted at the 2006 general election, those sections do not take
16.20 	effect.  Section 13 is effective July 1, 2005.

16.21 	ARTICLE 3
16.22 	TRANSPORTATION STUDIES AND PILOT PROJECTS

16.23 	Section 1. DEPARTMENT OF TRANSPORTATION; PILOT PROJECT ON
16.24 	LOCAL APPROVAL OF INTERSTATE HIGHWAY PROJECTS.
 16.25 		Subdivision 1.Designation of pilot projects. During the
16.26 	period from July 1, 2005, through June 30, 2015, the
16.27 	commissioner of transportation shall by executive order
16.28 	designate two highway improvement projects on trunk highways
16.29 	other than interstate highways as local approval pilot
16.30 	projects.  The order must identify the location of each project
16.31 	and the anticipated letting date of the contract for the
16.32 	project, which must be not later than June 30, 2015.  Of the
16.33 	trunk highway improvement projects so designated, one must be
16.34 	located entirely or primarily within the Department of
16.35 	Transportation's metropolitan construction district and one must
16.36 	be located entirely or primarily in another construction
17.1 	district.
17.2 		Subd. 2.Pilot projects; application of local approval
17.3 	law. A trunk highway improvement project designated as a local
17.4 	approval pilot project must be considered an interstate highway
17.5 	project for purposes of Minnesota Statutes, sections 161.162 to
17.6 	161.167.
17.7 		Subd. 3.Report. Within 90 days of the completion of a
17.8 	trunk highway project designated under subdivision 1, the
17.9 	commissioner shall report to the chairs of the legislative
17.10 	committees having jurisdiction over transportation policy and
17.11 	finance on the results of the pilot project.  The report must
17.12 	include a description of the approval process used, a history of
17.13 	the project including actions on the project by affected
17.14 	municipalities, and the effect of designation as a pilot project
17.15 	on the project's cost and completion schedule.

17.16 	Sec. 2. DEPARTMENT OF TRANSPORTATION; PILOT PROJECT ON
17.17 	PERFORMANCE-BASED SPECIFICATIONS.
 17.18 		Subdivision 1.Definition. For purposes of this section,
17.19 	"performance-based specifications" are specifications for
17.20 	contracts for the construction or reconstruction of a trunk
17.21 	highway that primarily specify the required performance of the
17.22 	completed facility rather than its method of construction, and
17.23 	that include (1) acceptance of the contractor's finished work on
17.24 	the project based on the measurement of the finished product's
17.25 	fundamental engineering properties that predict performance, (2)
17.26 	acceptance limits for the project that are established using a
17.27 	statistically valid basis, (3) use of mathematical models to
17.28 	quantify the relationship between the fundamental engineering
17.29 	properties measured and the product performance, and (4) price
17.30 	adjustment based on the expected life-cycle cost of the
17.31 	completed facility.
17.32 		Subd. 2.Designation of pilot projects. During the
17.33 	period from July 1, 2005, through June 30, 2015, the
17.34 	commissioner of transportation shall by executive order
17.35 	designate three highway improvement projects on trunk highways
17.36 	other than interstate highways as pilot projects on
18.1 	performance-based specifications.  The order must identify the
18.2 	location of each project and the anticipated date for letting
18.3 	the contract for the project, which must be not later than June
18.4 	30, 2015.  Of the trunk highway improvement projects so
18.5 	designated, at least one must be located entirely or primarily
18.6 	within the Department of Transportation's metropolitan
18.7 	construction district and at least one must be located entirely
18.8 	or primarily in another construction district.  The commissioner
18.9 	shall provide for performance-based specifications on all
18.10 	contracts for the construction of each such project.
18.11 		Subd. 3.Report. Within 90 days of the completion of a
18.12 	trunk highway project designated under subdivision 1, the
18.13 	commissioner shall report to the chairs of the legislative
18.14 	committees having jurisdiction over transportation policy and
18.15 	finance on the results of the pilot projects.  The report must
18.16 	include a description of specifications for each project, a
18.17 	history of the project from initial programming through
18.18 	completion, and the effect of using performance-based
18.19 	specifications on the project's cost and completion schedule.

18.20 	Sec. 3. DEPARTMENT OF TRANSPORTATION; HIGHWAY
18.21 	JURISDICTION REVIEW.
 18.22 		Subdivision 1.Review required. The commissioner of
18.23 	transportation shall review existing studies of the appropriate
18.24 	jurisdiction of highways presently on the state and local
18.25 	highway systems.  The review must include (1) criteria for
18.26 	determining the appropriate jurisdiction of highways, (2)
18.27 	identification of highways that are presently under
18.28 	inappropriate jurisdiction based on those criteria, (3) the
18.29 	extent to which inappropriate jurisdiction results in the
18.30 	application of inappropriate highway standards, and the
18.31 	potential for long-term costs savings through application of
18.32 	more appropriate standards, and (4) a plan for transferring
18.33 	state and local highways to appropriate jurisdiction.
18.34 		Subd. 2.Report. The commissioner shall report to the
18.35 	governor and legislature on the results of the review by January
18.36 	15, 2007.

19.1 	Sec. 4. DEPARTMENT OF TRANSPORTATION; COMMODITY CORRIDOR
19.2 	PILOT PROJECT.
 19.3 		Subdivision 1.Designation of commodity corridors. The
19.4 	commissioner of transportation shall designate two trunk
19.5 	highways that are principal arterials but not interstate
19.6 	highways as commodity corridors.  The commissioner shall make
19.7 	the designation based on the importance of each corridor to
19.8 	interregional, interstate, and international trade and commerce
19.9 	and the ability of each highway to safely accommodate vehicles
19.10 	with sizes and weights authorized under this section.
19.11 		Subd. 2.Size and weight restrictions on commodity
19.12 	corridors. The commissioner shall by order designate maximum
19.13 	axle weights, gross vehicle weights, and overall height, width,
19.14 	and length of vehicles and combinations on commodity corridors.
19.15 	A vehicle or combination operated on a commodity corridor and
19.16 	within one mile of a commodity corridor that complies with the
19.17 	size and weight limitations prescribed by the commissioner under
19.18 	this subdivision may be operated without a permit and without
19.19 	complying with any provision of Minnesota Statutes, sections
19.20 	169.80 to 169.872, that conflicts with a size and weight
19.21 	limitation prescribed by the commissioner.

19.22 	Sec. 5. DEPARTMENT OF TRANSPORTATION AND METROPOLITAN
19.23 	COUNCIL; STUDY OF TRANSIT EFFICIENCIES.
 19.24 	The Metropolitan Council and the Department of
19.25 	Transportation's office of transit shall jointly conduct a study
19.26 	of competitive procurement of transit service.  The review must
19.27 	include a description of current practices and policies,
19.28 	evaluation of future opportunities for additional competitive
19.29 	procurement, and recommendations for measures to allow public
19.30 	transit operators to take advantage of efficiencies in state
19.31 	procurement.  The council and the office of transit shall report
19.32 	to the legislature on the results of the review by January 15,
19.33 	2006.

19.34 	ARTICLE 4
19.35 	ENVIRONMENTAL REQUIREMENTS

19.36 	Section 1. DEPARTMENT OF TRANSPORTATION; PILOT PROJECT ON
20.1 	WETLAND REPLACEMENT.
 20.2 	During the period from July 1, 2005, through June 30, 2015,
20.3 	the commissioner of transportation shall by executive order
20.4 	designate two highway improvement projects located entirely or
20.5 	primarily within the seven-county metropolitan area as wetland
20.6 	replacement pilot projects.  The order must identify the
20.7 	location of each project.

20.8 	Sec. 2. LEGISLATIVE INTENT.
 20.9 		Subdivision 1.Cost savings for major trunk highway
20.10 	projects. It is the intent of the legislature that cost savings
20.11 	to the Department of Transportation and Metropolitan Council
20.12 	that accrue as a result of this article and article 5 be spent
20.13 	solely for major trunk highway projects as defined in Minnesota
20.14 	Statutes, sections 161.0421 and 174.53, subdivision 3, and the
20.15 	anticipated date for letting the contract for the project, which
20.16 	must be not later than June 30, 2015.
20.17 		Subd. 2.Pilot projects; application of wetlands
20.18 	replacement law. For purposes of wetlands replacement
20.19 	requirements under Minnesota Statutes, chapter 103G, a trunk
20.20 	highway improvement project designated as a wetlands replacement
20.21 	pilot project is subject to the same requirements as if the
20.22 	project were located outside the seven-county metropolitan area.
20.23 		Subd. 3.Report. Within 60 days of the completion of a
20.24 	trunk highway project designated under subdivision 1, the
20.25 	commissioner shall report to the chairs of the legislative
20.26 	committees having jurisdiction over transportation policy and
20.27 	finance on the results of the pilot project.  The report must
20.28 	state the effect of designation as a wetlands replacement pilot
20.29 	project on each such project's cost, environmental effects, and
20.30 	completion schedule.

20.31 	Sec. 3. ENVIRONMENTAL INVOLVEMENT PROGRAM.
 20.32 	The commissioner of transportation shall develop a process
20.33 	for early coordination with, and involvement by, environmental
20.34 	interests in the planning, design, preliminary and final
20.35 	engineering, and construction of trunk highway improvement
20.36 	projects.  For purposes of this section, "environmental
21.1 	interests" includes the Department of Natural Resources, the
21.2 	Pollution Control Agency, the Board of Water and Soil Resources,
21.3 	watershed districts, and other environmental interests, public
21.4 	and private, that the commissioner identifies.  The process must
21.5 	(1) identify environmental interests to be consulted, (2)
21.6 	establish timetables for consultation, (3) ensure that
21.7 	consultation is included in the earliest feasible stages of
21.8 	project development, and (4) provide for continued involvement
21.9 	throughout each project until all environmental approvals and
21.10 	permits have been obtained and compliance achieved with other
21.11 	environmental requirements.  The commissioner shall report to
21.12 	the legislature by January 15, 2006, on its activities under
21.13 	this section.

21.14 	Sec. 4. POLLUTION CONTROL AGENCY; SINGLE PERMIT.
 21.15 	The commissioner of the Pollution Control Agency shall
21.16 	develop a proposal under which the agency would combine into a
21.17 	single permit all requirements in law or rule for the issuance
21.18 	by the agency of permits or other approvals for highway
21.19 	projects, including national pollutant discharge elimination
21.20 	system permits.  The report must describe the feasibility and
21.21 	desirability of such a proposal, identify the costs and
21.22 	benefits, specify a timetable for implementation, and identify
21.23 	changes in law and rule necessary to implement the proposal.
21.24 	The commissioner shall report to the legislature by January 15,
21.25 	2006, on the commissioner's activities under this section.

21.26 	Sec. 5. DEPARTMENT OF NATURAL RESOURCES; SINGLE PERMIT.
 21.27 	The commissioner of natural resources shall develop a
21.28 	proposal under which the department would combine into a single
21.29 	permit all requirements in law or rule for the issuance by the
21.30 	department of permits or other approvals for construction or
21.31 	reconstruction of bridges and culverts by the Department of
21.32 	Transportation.  The report must describe the feasibility and
21.33 	desirability of such a proposal, identify the costs and
21.34 	benefits, specify a timetable for implementation, and identify
21.35 	changes in law and rule necessary to implement the proposal.
21.36 	The commissioner shall report to the legislature by January 15,
22.1 	2006, on the commissioner's activities under this section.

22.2 	ARTICLE 5
22.3 	DEPARTMENT OF TRANSPORTATION

22.4 	Section 1. [174.11] DEPARTMENT DESIGNATION AS CHARTER
22.5 	AGENCY.
22.6 		Subdivision 1.Designation. By July 1, 2005, the
22.7 	governor shall designate the Department of Transportation as a
22.8 	charter agency.  Notwithstanding any other provision of law or
22.9 	rule, as a charter agency the department has the powers and
22.10 	duties specified in this section.
22.11 		Subd. 2.Performance agreement. On July 1, 2005, and
22.12 	each July 1 thereafter, the governor and the commissioner of
22.13 	transportation shall enter into an annual performance agreement
22.14 	for setting measurable organization goals for the department and
22.15 	individual goals for the commissioner in key operational areas
22.16 	of the agency.  The organization and commissioner goals for each
22.17 	fiscal year must include cost savings or revenue generation at
22.18 	least equal to the budget reduction to the agency for that
22.19 	fiscal year as provided in section 2.  The annual performance
22.20 	agreement must be submitted to the legislature within ten days
22.21 	of its signing.
22.22 		Subd. 3.Compensation. (a) Notwithstanding any other
22.23 	law, the governor may set the salary of the commissioner of
22.24 	transportation at a rate not exceeding 100 percent of the
22.25 	governor's salary under section 15A.082.  In addition, the
22.26 	governor may authorize the payment of additional annual
22.27 	compensation to the commissioner in an amount not in excess of
22.28 	50 percent of the commissioner's annual salary, based upon the
22.29 	governor's evaluation of the commissioner's performance in
22.30 	relation to the goals set forth in the annual performance
22.31 	agreement.
22.32 	(b) Notwithstanding chapter 179A or any other law, the
22.33 	commissioner of transportation may authorize the payment of
22.34 	additional annual compensation to employees of the department in
22.35 	a total amount not in excess of 50 percent of the commissioner's
22.36 	annual salary, based upon the commissioner's evaluation of the
23.1 	employees' performance.
23.2 		Subd. 4.Personnel management. The commissioner of
23.3 	transportation may waive any personnel rule or administrative
23.4 	procedure of the Department of Employee Relations and may
23.5 	exercise the authority granted to the Department of Employee
23.6 	Relations relating to personnel management concerning employees
23.7 	of the department, subject to any restrictions on such authority
23.8 	as to employees of the department covered by a collective
23.9 	bargaining agreement.  The exclusive representative of employees
23.10 	of the department may enter into agreements with the department
23.11 	to grant the department the authority described in this
23.12 	subdivision.
23.13 		Subd. 5.Procurements. The commissioner of
23.14 	transportation may waive any administrative rule or departmental
23.15 	policy regarding procurement, fleet management, printing and
23.16 	copying, maintenance of buildings and grounds, and acquisition
23.17 	and use of information technology.  The department may exercise
23.18 	the authority of the Department of Administration as it relates
23.19 	to the physical resources of the state that are occupied by the
23.20 	department or of which the department is the primary occupant.

23.21 	Sec. 2. [174.12] RULE FLEXIBILITY FOR DEPARTMENT.
23.22 		Subdivision 1.Waiver; exemption. (a) The commissioner
23.23 	of transportation may temporarily waive the provisions of any
23.24 	administrative rule, or exempt the department from a rule, if
23.25 	compliance with the rule adversely affects the ability of the
23.26 	department to perform its duties as a charter agency in a more
23.27 	cost-efficient manner and the requirements of this section are
23.28 	met.  The commissioner may waive a rule or exempt itself from a
23.29 	rule under this section if the commissioner finds, based on
23.30 	clear and convincing evidence:
23.31 	(1) the application of the rule poses an undue financial
23.32 	hardship on the department;
23.33 	(2) the waiver or exemption is necessary to allow the
23.34 	department and commissioner to meet the goals specified in an
23.35 	agreement made under section 1;
23.36 	(3) the waiver of or exemption from the requirements of a
24.1 	rule in the specific case would not prejudice the substantial
24.2 	legal rights of any person;
24.3 	(4) substantially equal protection of public health,
24.4 	safety, and welfare will be afforded by a means other than that
24.5 	prescribed in the particular rule for which the waiver or
24.6 	exemption is made; and 
24.7 	(5) the waiver or exemption would not result in a violation
24.8 	of due process, a violation of state or federal law, or a
24.9 	violation of the state or federal constitution.
24.10 	(b) The commissioner must draft any waiver or exemption so
24.11 	as to provide the narrowest exception possible to the provisions
24.12 	of the rule and may place any condition on the waiver or
24.13 	suspension that the commissioner finds desirable to protect the
24.14 	public health, safety, and welfare.
24.15 	(c) Each proposed waiver or exemption under this section
24.16 	must specify the length of time it will be in effect.
24.17 		Subd. 2.Notice. If the commissioner intends to waive or
24.18 	exempt the department from a rule, the commissioner must give
24.19 	notice of the intention by publication in the State Register and
24.20 	by United States mail to persons who have registered their names
24.21 	with the agency under section 14.14, subdivision 1a.  The mailed
24.22 	notice must include a clear and concise statement of the rule
24.23 	and its applicability to the department, the commissioner's
24.24 	reasons for making the waiver or exemption including the
24.25 	commissioner's explanation of how the waiver or exemption meets
24.26 	the criteria under subdivision 1, the extent of the intended
24.27 	waiver or exemption, and a summary of the procedure provided in
24.28 	this section including the rights of interested parties.  In
24.29 	addition to mailing and publication in the State Register, the
24.30 	commissioner must make reasonable efforts to notify persons or
24.31 	classes of persons who may be significantly affected by the
24.32 	waiver or exemption by giving notice of the intention in
24.33 	newsletters, newspapers, or other publications, or through other
24.34 	means of communication.
24.35 		Subd. 3.Procedure if no hearing requested. If no
24.36 	hearing is requested on the proposed waiver or exemption within
25.1 	30 days after the commissioner has complied with all notice
25.2 	requirements under subdivision 2, the waiver or exemption takes
25.3 	effect on the day following the expiration of the 30-day period.
25.4 		Subd. 4.Procedure if hearing requested. If 25 or more
25.5 	persons request a public hearing on the proposed waiver or
25.6 	exemption during the 30 days following compliance by the
25.7 	commissioner with all requirements under subdivision 2, the
25.8 	department must schedule a hearing as provided under section
25.9 	14.14, subdivision 2a.  Notice of the hearing must be provided
25.10 	in the same manner as notice under subdivision 2.
25.11 		Subd. 5.Administrative law judge report; review and
25.12 	comment. Within 30 days of the completion of the public
25.13 	hearing, the administrative law judge conducting the hearing
25.14 	must write a report stating findings of fact and conclusions and
25.15 	recommendations.  The conclusions and recommendations must be
25.16 	limited to (1) the question of the extent to which the proposed
25.17 	waiver or exemption meets the criteria in subdivision 1, and (2)
25.18 	whether the proposed waiver or exemption should be allowed to
25.19 	take effect immediately, not take effect, or be delayed for a
25.20 	period of time specified in the report.  If the chief
25.21 	administrative law judge determines that the proposed waiver or
25.22 	exemption should not take effect or should be delayed, the
25.23 	commissioner must submit the proposed waiver or exemption to the
25.24 	Legislative Coordinating Commission and to the house of
25.25 	representatives and senate policy committees with primary
25.26 	jurisdiction over state governmental operations for advice and
25.27 	comment.  The commissioner may not implement the waiver or
25.28 	exemption until the commissioner has received and considered the
25.29 	advice of the commission and committees.  However, the
25.30 	commissioner is not required to wait for advice for more than 60
25.31 	days after the commission and committees have received the
25.32 	agency's submission.
25.33 		Subd. 6.Financial review. Each proposed waiver of or
25.34 	exemption from a rule as authorized by this section or section
25.35 	174.12 must be submitted to the commissioner of finance prior to
25.36 	becoming effective.  The commissioner of finance shall review
26.1 	the waiver or exemption and may disapprove it if, based on clear
26.2 	and convincing evidence, the commissioner determines that the
26.3 	waiver or exemption would result in an adverse financial impact
26.4 	on the state.  A waiver or exemption disapproved under this
26.5 	subdivision may not take effect.

26.6 	Sec. 3. APPROPRIATION REDUCTION.
 26.7 	The commissioner of finance shall reduce the appropriation
26.8 	from the trunk highway fund to the Department of Transportation
26.9 	in fiscal year 2006 and each subsequent year by $......., and
26.10 	credit the major projects account in the trunk highway fund by
26.11 	an amount equal to the reduction.

26.12 	Sec. 4. EFFECTIVE DATE.
 26.13 	Sections 1 to 3 are effective July 1, 2005, and expire June
26.14 	30, 2010.