1.1 	A bill for an act
1.2 	relating to capital improvements; authorizing
1.3 	$100,000,000 in general obligation bonds for local
1.4 	road improvement program; abolishing authority to use
1.5 	program money for loans; establishing rural road
1.6 	safety program in local road improvement fund;
1.7 	appropriating money; amending Minnesota Statutes 2004,
1.8 	section 174.52, subdivisions 2, 4, 5, by adding a
1.9 	subdivision.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	Section 1. Minnesota Statutes 2004, section 174.52,
1.12 	subdivision 2, is amended to read:
1.13 		Subd. 2.Trunk highway corridor projects account.  A
1.14 	trunk highway corridor projects account is established in the
1.15 	local road improvement fund.  Money in the account is annually
1.16 	appropriated to the commissioner of transportation for
1.17 	expenditure as specified in this section.  Money in the account
1.18 	must be used as grants or loans to statutory or home rule
1.19 	charter cities, towns, and counties to assist in paying the
1.20 	local share of trunk highway projects that have local costs that
1.21 	are directly or partially related to the trunk highway
1.22 	improvement and that are not funded or are only partially funded
1.23 	with other state and federal funds.  The commissioner shall
1.24 	determine the amount of the local share of costs eligible for
1.25 	assistance from the account.

1.26 	Sec. 2. Minnesota Statutes 2004, section 174.52,
1.27 	subdivision 4, is amended to read:
2.1 		Subd. 4.Local road account for routes of regional
2.2 	significance.  A local road account for routes of regional
2.3 	significance is established in the local road improvement fund.
2.4 	Money in the account is annually appropriated to the
2.5 	commissioner of transportation for expenditure as specified in
2.6 	this section.  Money in the account must be used as grants or
2.7 	loans to statutory or home rule charter cities, towns, and
2.8 	counties to assist in paying the costs of constructing or
2.9 	reconstructing city streets, county highways, or town roads with
2.10 	statewide or regional significance that have not been fully
2.11 	funded through other state, federal, or local funding sources.

2.12 	Sec. 3. Minnesota Statutes 2004, section 174.52, is
2.13 	amended by adding a subdivision to read:
2.14 		Subd. 4a.Rural road safety account; appropriation. (a)
2.15 	A rural road safety account is established in the local road
2.16 	improvement fund.  Money in the account is annually appropriated
2.17 	to the commissioner of transportation for expenditure as
2.18 	specified in this subdivision.  Money in the account must be
2.19 	used as grants to counties to assist in paying the costs of
2.20 	capital improvement projects on county state-aid highways that
2.21 	are intended primarily to reduce traffic crashes, deaths,
2.22 	injuries, and property damage.
2.23 	(b) The commissioner shall establish procedures for
2.24 	counties to apply for grants from the rural road safety account
2.25 	and criteria to be used to select projects for funding.  The
2.26 	commissioner shall establish these procedures and criteria in
2.27 	consultation with representatives appointed by the Association
2.28 	of Minnesota Counties.  Eligibility for project selection must
2.29 	be based on the ability of each proposed project to reduce the
2.30 	frequency and severity of crashes.
2.31 	(c) Money in the account must be allocated in each fiscal
2.32 	year as follows:
2.33 	(1) one-half of money in the account must be used for
2.34 	projects in the counties of Anoka, Chisago, Carver, Dakota,
2.35 	Hennepin, Ramsey, Scott, and Washington; and 
2.36 	(2) the remainder must be used for projects elsewhere in
3.1 	the state.

3.2 	Sec. 4. Minnesota Statutes 2004, section 174.52,
3.3 	subdivision 5, is amended to read:
3.4 		Subd. 5.Grant procedures and criteria.  The commissioner
3.5 	shall establish procedures for statutory or home rule charter
3.6 	cities, towns, and counties to apply for grants or loans from
3.7 	the fund trunk highway corridor projects account and local road
3.8 	account for routes of regional significance and criteria to be
3.9 	used to select projects for funding.  The commissioner shall
3.10 	establish these procedures and criteria in consultation with
3.11 	representatives appointed by the Association of Minnesota
3.12 	Counties, League of Minnesota Cities, and Minnesota Township
3.13 	Officers Association.  The criteria for determining project
3.14 	priority and the amount of a grant or loan must be based upon
3.15 	consideration of:
3.16 	(1) the availability of other state, federal, and local
3.17 	funds;
3.18 	(2) the regional significance of the route;
3.19 	(3) effectiveness of the proposed project in eliminating a
3.20 	transportation system deficiency;
3.21 	(4) the number of persons who will be positively impacted
3.22 	by the project;
3.23 	(5) the project's contribution to other local, regional, or
3.24 	state economic development or redevelopment efforts; and
3.25 	(6) ability of the local unit of government to adequately
3.26 	provide for the safe operation and maintenance of the facility
3.27 	upon project completion.

3.28 	Sec. 5. APPROPRIATION.
 3.29 	$100,000,000 is appropriated from the bond proceeds fund to
3.30 	the commissioner of transportation for deposit in the local road
3.31 	improvement fund.  Of this appropriation:
3.32 	(1) $50,000,000 is for the local road account for routes of
3.33 	regional significance; and 
3.34 	(2) $50,000,000 is for the rural road safety account.

3.35 	Sec. 6. BOND SALE.
 3.36 	To provide the money appropriated by section 5 from the
4.1 	bond proceeds fund, the commissioner of finance shall sell and
4.2 	issue bonds of the state in an amount up to $100,000,000 in the
4.3 	manner, on the terms, and with the effect prescribed by
4.4 	Minnesota Statutes, sections 16A.631 to 16A.675, and by the
4.5 	Minnesota Constitution, article XI, sections 4 to 7.

4.6 	Sec. 7. EFFECTIVE DATE.
 4.7 	Sections 1 to 6 are effective July 1, 2005.