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HF 1434

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 05/22/2017 01:37am

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

Bill Text Versions

Engrossments
Introduction Posted on 02/20/2017
1st Engrossment Posted on 03/02/2017

Current Version - 1st Engrossment

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A bill for an act
relating to transportation; governing trunk highway project selection; amending
and mandating certain project selection processes; requiring availability of highway
project information; amending legislative reporting; amending Minnesota Statutes
2016, sections 161.088, subdivisions 4, 5, 7; 161.38, by adding a subdivision;
174.03, by adding a subdivision; 174.56, subdivisions 1, 2, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 161.088, subdivision 4, is amended to read:


Subd. 4.

Project eligibility.

(a) The commissioner deleted text begin shalldeleted text end new text begin mustnew text end establish eligibility
requirements for projects that can be funded under the program. Eligibility must include:

(1) consistency with the statewide multimodal transportation plan under section 174.03;

(2) location of the project on an interregional corridor, for a project located outside of
the Department of Transportation metropolitan district;

(3) placement into at least one project classification under subdivision 3;

(4) a maximum length of time, as determined by the commissionernew text begin but no less than three
years
new text end , until commencement of construction work on the project; and

(5) for each type of project classification under subdivision 3, a maximum allowable
amount for the total project cost estimate, as determined by the commissioner with available
data.

(b) A project whose construction is programmed in the state transportation improvement
program is not eligible for funding under the program. This paragraph does not apply to a
project that is programmed as result of selection under this section.

(c) A project may be, but is not required to be, identified in the 20-year state highway
capital investment plan under section 174.03.

Sec. 2.

Minnesota Statutes 2016, section 161.088, subdivision 5, is amended to read:


Subd. 5.

Project selection process; criteria.

(a) The commissioner deleted text begin shalldeleted text end new text begin mustnew text end establish
a process for identification, evaluation, and selection of projects under the program.

(b) As part of the project selection process, the commissioner deleted text begin shalldeleted text end new text begin mustnew text end annually accept
recommendations on candidate projects from area transportation partnerships and other
interested stakeholders in each Department of Transportation district. For each candidate
project identified under this paragraph, the commissioner deleted text begin shalldeleted text end new text begin mustnew text end determine eligibility,
classify, and if deleted text begin appropriatedeleted text end new text begin eligiblenew text end , evaluate the project for the program.

(c) Project evaluation and prioritization must be performed on the basis of objective
criteria, which must include:

(1) a return on investment measure that provides for comparison across eligible projects;

(2) measurable impacts on commerce and economic competitiveness;

(3) efficiency in the movement of freight, deleted text begin including but not limited todeleted text end new text begin which may includenew text end :

(i) measures of annual average daily traffic and commercial vehicle miles traveled, which
may include data near the project location on that trunk highway or on connecting trunk
and local highways; and

(ii) measures of congestion or travel time reliability, which may be within or near the
project limits, or both;

(4) improvements to traffic safety;

(5) connections to deleted text begin regional trade centers,deleted text end local highway systemsdeleted text begin ,deleted text end and other transportation
modes;

(6) the extent to which the project addresses multiple transportation system policy
objectives and principles; and

(7) support and consensus for the project among members of the surrounding community.

(d) As part of the project selection process, the commissioner may divide funding to be
separately available among projects within each classification under subdivision 3, and may
apply separate or modified criteria among those projects falling within each classification.

Sec. 3.

Minnesota Statutes 2016, section 161.088, subdivision 7, is amended to read:


Subd. 7.

Legislative report; evaluation.

(a) deleted text begin Starting in 2014,deleted text end Annually by November
1, the commissioner shall electronically submit a report on the corridors of commerce
program to the chairs and ranking minority members of the legislative committees with
jurisdiction over transportation policy and finance. At a minimum, the report must include:

(1) a summary of the program, including a review of deleted text begin thedeleted text end new text begin :
new text end

new text begin (i)new text end project selection processnew text begin details that address program design and implementation,
decision-making procedures
new text end , new text begin and new text end eligibility deleted text begin and criteria,deleted text end new text begin evaluation; and
new text end

new text begin (ii) all criteria including any established by the commissioner, criteria measurement
methodologies, and any criteria weighting or ranking used in project selection;
new text end

new text begin (2) a summary of program finance, includingnew text end funds expended in the previous selection
cycle,new text begin any future operating costs assigned under subdivision 6,new text end and total funds expended
since program inception;

deleted text begin (2)deleted text end new text begin (3)new text end a deleted text begin listingdeleted text end new text begin listnew text end of projects funded under the program in the previous selection cycle,
including:

(i) project classification;

(ii) a breakdown of project costs and funding sources;new text begin and
new text end

(iii) deleted text begin any future operating costs assigned under subdivision 6; and
deleted text end

deleted text begin (iv)deleted text end a briefnew text begin projectnew text end description that is comprehensible to a lay audience;

deleted text begin (3)deleted text end new text begin (4)new text end a deleted text begin listingdeleted text end new text begin comprehensive listnew text end ofnew text begin evaluated projects andnew text end candidate project
recommendationsnew text begin asnew text end required under subdivision 5, paragraph (b), deleted text begin includingdeleted text end new text begin that identifies
for each
new text end projectnew text begin : eligibility,new text end classificationnew text begin , evaluation results for each criterion, ranking if
applicable,
new text end and disposition in the selection process; and

deleted text begin (4)deleted text end new text begin (5)new text end any recommendations for changes to statutory requirements of the program.

(b) deleted text begin Starting in 2016, and in every even-numbered year thereafterdeleted text end new text begin In every third year
following a year in which project selection is completed, but not more frequently than every
other year
new text end , the commissioner deleted text begin shalldeleted text end new text begin mustnew text end incorporate into the report the results of an
independent evaluation of impacts and effectiveness of the program. The evaluation must
be performed by agency staff or a consultant. The individual or individuals performing the
evaluation must have experience in program evaluation, but must not be regularly involved
in the program's implementation.

new text begin (c) Notwithstanding paragraph (a), a report is not required in a year in which (1) no
project selection was completed during the preceding 12 months, and (2) an evaluation
under paragraph (b) is not due.
new text end

Sec. 4.

Minnesota Statutes 2016, section 161.38, is amended by adding a subdivision to
read:


new text begin Subd. 8. new text end

new text begin Spending on trunk highway system. new text end

new text begin The commissioner must maintain
information on expenditures by local road authorities from local sources of funds for trunk
highway system projects.
new text end

Sec. 5.

Minnesota Statutes 2016, section 174.03, is amended by adding a subdivision to
read:


new text begin Subd. 1e. new text end

new text begin Capacity and major highway projects; planning and programming. new text end

new text begin (a)
The commissioner must implement a process concerning trunk highway projects that are
not included in the state transportation improvement program. The commissioner must use
the process for projects that expand trunk highway system capacity and for major highway
projects, as defined in section 174.56, subdivision 1.
new text end

new text begin (b) At a minimum, the process must:
new text end

new text begin (1) establish standard, objective procedures for planning, project identification,
development, prioritization, and programming;
new text end

new text begin (2) address fiscal considerations, including total expenditures to develop projects that
are not programmed;
new text end

new text begin (3) communicate to stakeholders and the general public an outline of the process and a
list of specific capacity projects, using plain language descriptions and information; and
new text end

new text begin (4) integrate with the department's programs that involve alternative project selection
methods, including but not limited to the corridors of commerce program under section
161.088 and the transportation economic development program under section 174.12.
new text end

Sec. 6.

Minnesota Statutes 2016, section 174.56, subdivision 1, is amended to read:


Subdivision 1.

Report required.

(a) The commissioner of transportation deleted text begin shalldeleted text end new text begin mustnew text end
submit a report by December 15 of each year deleted text begin ondeleted text end new text begin that includes:
new text end

(1) the status of major highway projectsnew text begin (i)new text end completed during the previous two yearsnew text begin ,new text end ornew text begin
(ii)
new text end under construction or planned during the year of the report deleted text begin and for the ensuing 15 years,
(2) trunk highway fund expenditures, and
deleted text end new text begin ;
new text end

new text begin (2) a list of any major highway projects identified in capital investment plans or identified
as reasonably likely for inclusion in the state transportation improvement program within
the next ten years;
new text end

(3) deleted text begin beginning with the report due in 2016,deleted text end new text begin a list of any major highway projects removed
from, delayed within, or delayed from inclusion in the state transportation improvement
program or capital investment plans, including a discussion of the rationale for the delay
or removal;
new text end

new text begin (4) an explanation of the highway project selection process, including key milestones
and decision-making steps;
new text end

new text begin (5) the annual budget for products and services for each Department of Transportation
district and office, with a comparison to actual spending and including measures of
productivity for the previous fiscal year; and
new text end

new text begin (6) information detailingnew text end efficiencies achieved during the previous two fiscal years.

(b) For purposes of this section, a "major highway project" is a highway project that has
a total cost for all segments that the commissioner estimates at the time of the report to be
at least (1) $15,000,000 in the metropolitan highway construction district, or (2) $5,000,000
in any nonmetropolitan highway construction district.new text begin A major highway project does not
include district set-asides.
new text end

Sec. 7.

Minnesota Statutes 2016, section 174.56, subdivision 2, is amended to read:


Subd. 2.

Report contents; major highway projects.

new text begin (a) new text end For each major highway projectnew text begin
under subdivision 1, paragraph (a), clause (1),
new text end the report must include:

(1) a description of the project sufficient to specify its scope and location;

(2) a history of the project, includingdeleted text begin ,deleted text end but not limited todeleted text begin ,deleted text end new text begin and as applicable:new text end previous
official actions by the department or the appropriate area transportation partnership, or both,
the date on which the project was first included in the state transportation improvement deleted text begin plandeleted text end new text begin
program
new text end , the cost of the project at that time, the planning estimate for the project, the
engineer's estimate, the award price, the final cost as of six months after substantial
completion, includingnew text begin a total amount fornew text end any supplemental agreements and cost overruns
or cost savings, the dates of environmental approval, the dates of municipal approval, the
date of final geometric layout, and the date of establishment of any construction limits;

(3) the project's priority listing or rank within its construction district, if any, as well as
the reasons for that listing or rank, the criteria used in prioritization or rank, any changes
in that prioritization or rank since the project was first included in a department work plan,
and the reasons for those changes;new text begin and
new text end

(4) past and potential future reasons for delay in letting or completing the project, details
of all project cost changes that exceed $500,000, and specific modifications deleted text begin to the overall
program
deleted text end that are made as a result of delays and project cost changesdeleted text begin ;deleted text end new text begin .
new text end

deleted text begin (5) two representative trunk highway construction projects, one each from the
department's metropolitan district and from greater Minnesota, and for each project report
the cost of environmental mitigation and compliance; and
deleted text end

deleted text begin (6) the annual budget for products and services for each Department of Transportation
district and office, with comparison to actual spending and including measures of productivity
for the previous fiscal year.
deleted text end

new text begin (b) For each major highway project under subdivision 1, paragraph (a), clauses (2) and
(3), the report must include, as available, a project description and a summary of project
status, scoping activity, and cost estimates.
new text end

Sec. 8.

Minnesota Statutes 2016, section 174.56, is amended by adding a subdivision to
read:


new text begin Subd. 4. new text end

new text begin Availability of information. new text end

new text begin The commissioner shall maintain on an Internet
Web site information for each major highway project, which must at a minimum include
the report contents identified in subdivision 2.
new text end