1.1                          A bill for an act 
  1.2             relating to transportation; creating a local road 
  1.3             improvement fund; providing for standing appropriation 
  1.4             of money in the fund to the commissioner of 
  1.5             transportation; specifying criteria for expenditures 
  1.6             from the fund; authorizing bonds; proposing coding for 
  1.7             new law in Minnesota Statutes, chapter 174. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [174.52] [LOCAL ROAD IMPROVEMENT FUND.] 
  1.10     Subdivision 1.  [FUND CREATED.] A local road improvement 
  1.11  fund is created in the state treasury.  The fund consists of 
  1.12  money transferred to the fund through appropriation, gift, or 
  1.13  grant.  Money in the fund is annually appropriated to the 
  1.14  commissioner of transportation for expenditure as specified in 
  1.15  this section. 
  1.16     Subd. 2.  [TRUNK HIGHWAY CORRIDOR PROJECTS ACCOUNT.] A 
  1.17  trunk highway corridor projects account is established in the 
  1.18  local road improvement fund.  Money in the account must be used 
  1.19  as grants or loans to statutory or home rule charter cities, 
  1.20  towns, and counties to assist in paying the local share of trunk 
  1.21  highway projects that have local costs that are directly or 
  1.22  partially related to the trunk highway improvement and that are 
  1.23  not funded or are only partially funded with other state and 
  1.24  federal funds.  The commissioner shall determine the amount of 
  1.25  the local share of costs eligible for assistance from the 
  1.26  account. 
  2.1      Subd. 3.  [ADVISORY COMMITTEE.] The commissioner shall 
  2.2   establish an advisory committee consisting of five members, 
  2.3   including: 
  2.4      (1) one county commissioner; 
  2.5      (2) one county engineer; 
  2.6      (3) one city engineer; 
  2.7      (4) one city council member or city administrator 
  2.8   representing a city with a population over 5,000; and 
  2.9      (5) one city council member or city administrator 
  2.10  representing a city with a population under 5,000. 
  2.11  The advisory committee shall provide recommendations to the 
  2.12  commissioner regarding expenditures from the trunk highway 
  2.13  corridor projects account. 
  2.14     Subd. 4.  [LOCAL ROAD ACCOUNT FOR ROUTES OF REGIONAL 
  2.15  SIGNIFICANCE.] A local road account for routes of regional 
  2.16  significance is established in the local road improvement fund.  
  2.17  Money in the account must be used as grants or loans to 
  2.18  statutory or home rule charter cities, towns, and counties to 
  2.19  assist in paying the costs of constructing or reconstructing 
  2.20  city streets, county highways, or town roads with statewide or 
  2.21  regional significance that has not been fully funded through 
  2.22  other state, federal, or local funding sources. 
  2.23     Subd. 5.  [GRANT PROCEDURES AND CRITERIA.] The commissioner 
  2.24  shall establish procedures for statutory or home rule charter 
  2.25  cities, towns, and counties to apply for grants or loans from 
  2.26  the fund and criteria to be used to select projects for 
  2.27  funding.  The commissioner shall establish these procedures and 
  2.28  criteria in consultation with representatives appointed by the 
  2.29  Association of Minnesota Counties, League of Minnesota Cities, 
  2.30  and Minnesota Township Association.  The criteria for 
  2.31  determining project priority and the amount of a grant or loan 
  2.32  must be based upon consideration of: 
  2.33     (1) the availability of other state, federal, and local 
  2.34  funds; 
  2.35     (2) the regional significance of the route; 
  2.36     (3) effectiveness of the proposed project in eliminating a 
  3.1   transportation system deficiency; 
  3.2      (4) the number of persons who will be positively impacted 
  3.3   by the project; 
  3.4      (5) the project's contribution to other local, regional, or 
  3.5   state economic development or redevelopment efforts; and 
  3.6      (6) ability of the local unit of government to adequately 
  3.7   provide for the safe operation and maintenance of the facility 
  3.8   upon project completion. 
  3.9      Subd. 6.  [ADMINISTRATIVE COSTS.] A sum of 0.25 percent of 
  3.10  the total amount in the fund is available to be used for 
  3.11  administrative costs incurred by the department in carrying out 
  3.12  the provisions of this section. 
  3.13     Sec. 2.  [TRANSFER.] 
  3.14     The commissioner of finance shall transfer $50,000,000 from 
  3.15  the bond proceeds fund to the local road improvement fund.  Of 
  3.16  this amount, $20,000,000 is for the trunk highway corridor 
  3.17  projects account and $30,000,000 is for the local road account 
  3.18  for routes of regional significance. 
  3.19     Sec. 3.  [BOND AUTHORIZATION.] 
  3.20     To provide the money transferred in this act from the bond 
  3.21  proceeds fund, the commissioner of finance shall sell and issue 
  3.22  bonds of the state in an amount up to $50,000,000 in the manner, 
  3.23  upon the terms, and with the effect prescribed by Minnesota 
  3.24  Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
  3.25  Constitution, article XI, sections 4 to 7.