1.1                          A bill for an act 
  1.2             relating to transportation; creating a local road 
  1.3             improvement fund; specifying uses for the fund; 
  1.4             providing for transfers to the fund; establishing an 
  1.5             advisory committee; appropriating money; proposing 
  1.6             coding for new law in Minnesota Statutes, chapter 174. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [174.52] [LOCAL ROAD IMPROVEMENT FUND.] 
  1.9      Subdivision 1.  [FUND CREATED; APPROPRIATION.] A local road 
  1.10  improvement fund is created in the state treasury.  The fund 
  1.11  consists of money transferred to the fund through appropriation, 
  1.12  gift, or grant.  Money in the fund is annually appropriated to 
  1.13  the commissioner of transportation for expenditure as specified 
  1.14  in subdivision 3. 
  1.15     Subd. 2.  [ADVISORY COMMITTEE.] The commissioner of 
  1.16  transportation shall annually consult with the local road 
  1.17  improvement advisory committee concerning expenditures from the 
  1.18  fund.  The committee consists of: 
  1.19     (1) the commissioner or commissioner's designee who shall 
  1.20  also serve as chair of the advisory committee; 
  1.21     (2) two local elected officials representing cities with a 
  1.22  population under 5,000, appointed by the League of Minnesota 
  1.23  Cities, one of whom must reside in a city within the 
  1.24  metropolitan area as defined in section 473.121, subdivision 2; 
  1.25  and 
  1.26     (3) two elected officials representing towns, appointed by 
  2.1   the Minnesota Township Association, one of whom must represent a 
  2.2   town within the metropolitan area.  The committee shall annually 
  2.3   review funding applications and make recommendations to the 
  2.4   commissioner regarding expenditures from the fund. 
  2.5      Subd. 3.  [USES OF THE FUND; CRITERIA.] (a) Projects 
  2.6   eligible for funding from the local road improvement fund must: 
  2.7      (1) involve the improvement of local streets or roads 
  2.8   within a city with a population under 5,000, or a town; 
  2.9      (2) involve the improvement of local streets or roads as 
  2.10  part of a larger project within a trunk highway corridor; and 
  2.11     (3) have local street or road costs that are not funded, or 
  2.12  are only partially funded with other state and federal funds.  
  2.13     (b) The advisory committee shall give funding priority to 
  2.14  projects that meet the following criteria: 
  2.15     (1) the local funding share is necessary to match federal 
  2.16  high priority project funds; or 
  2.17     (2) the local funding share exceeds ..... percent of the 
  2.18  net tax capacity of the town or city. 
  2.19     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
  2.20     Sec. 2.  [APPROPRIATION.] 
  2.21     $....... is appropriated from the general fund for transfer 
  2.22  to the local road improvement fund for the purposes stated in 
  2.23  section 1.