1.1                          A bill for an act 
  1.2             relating to transportation; creating a local road 
  1.3             improvement fund; specifying criteria for expenditures 
  1.4             from the fund; appropriating money; proposing coding 
  1.5             for new law in Minnesota Statutes, chapter 174. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7   Section 1.  [APPROPRIATIONS.] 
  1.8      The sums in the column under "APPROPRIATIONS" are 
  1.9   appropriated from the general fund, or another named fund, to 
  1.10  the state agencies or officials indicated, to be spent for the 
  1.11  purposes indicated, for fiscal year 2002.  The appropriations do 
  1.12  not cancel, but are available until expended. 
  1.13                          SUMMARY BY FUND
  1.14  TRANSPORTATION                    $  350,000,000
  1.15  METROPOLITAN COUNCIL                  65,000,000
  1.16  FINANCE                               10,000,000
  1.17  TOTAL                                425,000,000
  1.18  Sec. 2.  TRANSPORTATION
  1.19  Subdivision 1.  Total appropriation                 350,000,000
  1.20  To the commissioner of transportation 
  1.21  for the purposes specified in this 
  1.22  section. 
  1.23  Subd. 2.  State Road
  1.24  Construction                                        225,000,000
  1.25  (a) This appropriation is from the 
  1.26  general fund for the construction, 
  1.27  reconstruction, and improvement of 
  1.28  trunk highways.  The commissioner shall 
  1.29  allocate this appropriation to the 
  2.1   eight state construction districts 
  2.2   using the target allocation formula 
  2.3   commonly used to distribute biennial 
  2.4   appropriations for road construction 
  2.5   purposes.  The districts shall give 
  2.6   priority to projects that preserve and 
  2.7   repair existing trunk highways or make 
  2.8   safety-related improvements and that 
  2.9   can be accomplished during the 
  2.10  2002-2003 biennium. 
  2.11  (b) Of the appropriations under this 
  2.12  section, the commissioner may not spend 
  2.13  more than $40,000,000 for program 
  2.14  delivery. 
  2.15  (c) The appropriations under this 
  2.16  section are available through June 30, 
  2.17  2003.  On July 1, 2003, any part of 
  2.18  this appropriation not spent cancels to 
  2.19  the trunk highway fund.  The 
  2.20  commissioner shall report by February 
  2.21  1, 2003, to the chairs of the senate 
  2.22  and house of representatives committees 
  2.23  having jurisdiction over transportation 
  2.24  policy and transportation finance on 
  2.25  any projects that the department of 
  2.26  transportation has scheduled to be 
  2.27  constructed with this appropriation 
  2.28  that the commissioner determines will 
  2.29  be canceled or delayed as a result of 
  2.30  any part of this appropriation 
  2.31  canceling to the trunk highway fund.  
  2.32  For purposes of this paragraph, money 
  2.33  encumbered by the commissioner for a 
  2.34  trunk highway project is considered to 
  2.35  be spent. 
  2.36  Subd. 3.  Report on Projects
  2.37  The commissioner shall by August 1 of 
  2.38  calendar years 2001 to 2003 report to 
  2.39  the chairs of the senate and house of 
  2.40  representatives committees with 
  2.41  jurisdiction over transportation policy 
  2.42  and finance on the status of each 
  2.43  project that is financed in whole or in 
  2.44  part from the money appropriated under 
  2.45  subdivision 2.  For each such project 
  2.46  the report must identify:  
  2.47  (1) the estimated full cost; 
  2.48  (2) a schedule for completion; 
  2.49  (3) the current status of right-of-way 
  2.50  acquisition and environmental review; 
  2.51  and 
  2.52  (4) the project's status in the 
  2.53  commissioner's current statewide 
  2.54  transportation improvement program. 
  2.55  Subd. 4.  Local Bridge
  2.56  Replacement and Rehabilitation                       20,000,000
  2.57  To match federal money and to replace 
  2.58  or rehabilitate local deficient 
  2.59  bridges.  Political subdivisions may 
  2.60  use grants made under this subdivision 
  2.61  to construct or reconstruct bridges, 
  3.1   including:  
  3.2   (1) matching federal aid grants to 
  3.3   construct or reconstruct key bridges; 
  3.4   (2) paying the costs of preliminary 
  3.5   engineering and environmental studies 
  3.6   authorized under Minnesota Statutes, 
  3.7   section 174.50, subdivision 6a; 
  3.8   (3) paying the costs to abandon an 
  3.9   existing bridge that is deficient and 
  3.10  in need of replacement, but where no 
  3.11  replacement will be made; and 
  3.12  (4) paying the cost to construct a road 
  3.13  or street to facilitate the abandonment 
  3.14  of an existing bridge determined by the 
  3.15  commissioner to be deficient, if the 
  3.16  commissioner determines that 
  3.17  construction of the road or street is 
  3.18  more economical than replacing the 
  3.19  existing bridge.  
  3.20  Subd. 5.  Local Road
  3.21  Improvement Fund                                     80,000,000
  3.22  For transfer to the local road 
  3.23  improvement fund created in section 5.  
  3.24  Of this amount, $30,000,000 is for 
  3.25  transfer to the trunk highway corridor 
  3.26  account, $30,000,000 is for transfer to 
  3.27  the local road development account, 
  3.28  $15,000,000 is for transfer to the 
  3.29  small cities account and $5,000,000 is 
  3.30  for transfer to the noise wall account. 
  3.31  Subd. 6.  Turnbacks                                   5,000,000
  3.32  Of this appropriation, $4,000,000 is 
  3.33  for transfer to the county turnback 
  3.34  account and $1,000,000 is for transfer 
  3.35  to the municipal turnback account. 
  3.36  Subd. 7.  Rail Service
  3.37  Improvement                                           5,000,000
  3.38  For purposes defined under the rail 
  3.39  service improvement program under 
  3.40  Minnesota Statutes, sections 222.46 to 
  3.41  222.63. 
  3.42  Subd. 8.  Port Development
  3.43  Assistance                                            5,000,000
  3.44  For port development assistance 
  3.45  grants.  The grants must be made to 
  3.46  political subdivisions for capital 
  3.47  improvements constructed after the 
  3.48  effective date of this appropriation 
  3.49  under Minnesota Statutes, chapter 
  3.50  457A.  Any improvement made with the 
  3.51  proceeds of these grants must be owned 
  3.52  by a public body. 
  3.53  Sec. 3.  METROPOLITAN COUNCIL TRANSIT
  3.54  Subdivision 1.  Total Appropriation                  65,000,000
  3.55  To the metropolitan council for the 
  3.56  purposes specified in this section.  
  4.1   This appropriation is available until 
  4.2   spent and does not add to the agency's 
  4.3   budget base.  
  4.4   Subd. 2.  Bus Garages                                10,000,000
  4.5   To construct bus garages. 
  4.6   Subd. 3.  Bus Transit Ways                           15,000,000
  4.7   For engineering, design, and 
  4.8   construction of bus transit ways, 
  4.9   including, but not limited to, 
  4.10  acquisition of land and right-of-way. 
  4.11  Subd. 4.  Bus Purchases and
  4.12  Capital Facilities                                   22,000,000
  4.13  This appropriation is for bus 
  4.14  purchases, bus shelters, park and 
  4.15  rides, and other capital facilities 
  4.16  related to bus operations. 
  4.17  Subd. 5.  Fare Increase
  4.18  Replacement                                          18,000,000
  4.19  This appropriation is a one-time 
  4.20  appropriation for transit operating 
  4.21  purposes to avoid a planned fare 
  4.22  increase.  The metropolitan council may 
  4.23  not increase base fares during the 
  4.24  2002-2003 biennium without specific 
  4.25  legislative authorization.  The 
  4.26  metropolitan council must use a portion 
  4.27  of this appropriation as grants to the 
  4.28  transit systems commonly known as 
  4.29  opt-outs to replace revenue expected 
  4.30  from the fare increase. 
  4.31  Sec. 4.  FINANCE                                     10,000,000
  4.32  For transfer to the transportation 
  4.33  revolving fund. 
  4.34     Sec. 5.  [174.52] [LOCAL IMPROVEMENT FUND.] 
  4.35     Subdivision 1.  [FUND CREATED.] A local road improvement 
  4.36  fund is created in the state treasury.  The fund consists of 
  4.37  money transferred to the fund through appropriation, gift, or 
  4.38  grant.  Money in the fund is annually appropriated to the 
  4.39  commissioner for expenditure as specified in this section. 
  4.40     Subd. 2.  [ADVISORY COMMITTEE.] The commissioner of 
  4.41  transportation shall annually consult with a local road 
  4.42  improvement advisory committee concerning criteria for 
  4.43  expenditure and allocations from the fund.  The advisory 
  4.44  committee consists of 11 members appointed as follows: 
  4.45     (1) three representatives appointed by the commissioner, 
  4.46  one of whom shall be designated as the chair of the advisory 
  4.47  committee; 
  5.1      (2) two representatives appointed by the association of 
  5.2   Minnesota counties, of which one must represent a county in the 
  5.3   metropolitan area; 
  5.4      (3) two representatives of cities with a population under 
  5.5   5,000 appointed by the league of Minnesota cities, of which one 
  5.6   must represent a city in the metropolitan area; 
  5.7      (4) two representatives of cities with a population of 
  5.8   5,000 and over, appointed by the league of Minnesota cities, of 
  5.9   which one must represent a city in the metropolitan area; and 
  5.10     (5) two representatives appointed by the Minnesota township 
  5.11  association. 
  5.12  The committee shall by September 1, 2001, establish criteria for 
  5.13  making grants from the fund and a process for cities, counties, 
  5.14  and townships to apply for grants.  The committee must award at 
  5.15  least 50 percent of the funds to local projects by December 15, 
  5.16  2001. 
  5.17     Subd. 3.  [TRUNK HIGHWAY CORRIDOR ACCOUNT.] A trunk highway 
  5.18  corridor account is established in the local road improvement 
  5.19  fund.  Money in the account must be used as grants to cities, 
  5.20  towns, and counties to assist in paying the local share of 
  5.21  projects that: 
  5.22     (1) involve the reconstruction or improvement of a trunk 
  5.23  highway; 
  5.24     (2) have local costs that are not funded, or are only 
  5.25  partially funded with other state and federal funds; and 
  5.26     (3) where the local share of the costs are directly or 
  5.27  partially related to the trunk highway improvement. 
  5.28  In making allocations from the trunk highway corridor account, 
  5.29  the advisory committee must give priority to projects that meet 
  5.30  the following criteria: 
  5.31     (1) the local funding share is necessary to match federal 
  5.32  funds; and 
  5.33     (2) the local share exceeds .... percent of the city, town, 
  5.34  or county's adjusted next tax capacity. 
  5.35     Subd. 4.  [LOCAL ROAD DEVELOPMENT ACCOUNT.] A local road 
  5.36  development account is established in the local road improvement 
  6.1   fund.  Money in the account must be used as grants to cities and 
  6.2   counties to assist in paying the costs of constructing or 
  6.3   reconstructing local roads that are on the municipal state-aid 
  6.4   or county state-aid system.  In making allocations from the 
  6.5   local road development account, the advisory committee must give 
  6.6   priority to projects that meet the following criteria: 
  6.7      (1) the local road is of regional significance and connects 
  6.8   to the regional roadway system; 
  6.9      (2) the project is designated to receive federal funds; 
  6.10     (3) the project is part of a larger economic development or 
  6.11  redevelopment effort; and 
  6.12     (4) there is a commitment of nonstate and federal funds for 
  6.13  at least .... percent of the total project costs. 
  6.14     Subd. 5.  [SMALL CITIES ACCOUNT.] A small cities account is 
  6.15  established in the local road development fund.  Money in the 
  6.16  account must be used as grants to cities with a population under 
  6.17  5,000 to assist in paying costs related to maintenance and 
  6.18  construction of the local road system.  In making allocations 
  6.19  from the small cities account, the advisory committee must 
  6.20  establish criteria that at a minimum considers the population 
  6.21  and street mileage within the city. 
  6.22     Subd. 6.  [NOISE WALL ACCOUNT.] A noise wall account is 
  6.23  established in the local road development fund.  Money in the 
  6.24  account must be used as grants to cities, towns, and counties to 
  6.25  assist in paying the cost of constructing a noise wall along a 
  6.26  trunk highway.  In making allocations from the noise wall 
  6.27  account, the advisory committee must give priority to projects 
  6.28  that provide local matching funds for at least 50 percent of the 
  6.29  project costs.