1.1                          A bill for an act 
  1.2             relating to transportation; establishing major highway 
  1.3             project account; authorizing bonding; exempting 
  1.4             certain contracts from moratorium on state contracts 
  1.5             for professional or technical services; appropriating 
  1.6             money; amending Laws 2002, chapter 220, article 10, 
  1.7             section 37; proposing coding for new law in Minnesota 
  1.8             Statutes, chapter 161. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [161.042] [MAJOR PROJECT ACCOUNT.] 
  1.11     (a) A major project account is created in the trunk highway 
  1.12  fund, consisting of money credited to the account under section 
  1.13  3, and other money credited to the account by law.  Money in the 
  1.14  account is appropriated to the commissioner of transportation 
  1.15  for the construction, including acquisition of real property 
  1.16  therefor, of trunk highway projects that: 
  1.17     (1) have been identified by the commissioner as projects to 
  1.18  (i) remove a significant highway bottleneck within the 
  1.19  metropolitan area, (ii) improve a trunk highway in an at-risk 
  1.20  interregional corridor located primarily or entirely outside the 
  1.21  seven-county metropolitan area, (iii) provide a trunk 
  1.22  highway-related advantage to transit, or (iv) make highway 
  1.23  safety and capacity improvements including but not limited to 
  1.24  addition of lanes on trunk highway corridors with known safety 
  1.25  problems; and 
  1.26     (2) in the case of projects described in clause (1), items 
  1.27  (i), (ii), and (iii), have a construction cost, in the year that 
  2.1   construction is expected to begin, that exceeds 25 percent of 
  2.2   the estimated annual construction program of the department of 
  2.3   transportation division or construction district in which the 
  2.4   project is located. 
  2.5      (b) In fiscal year 2003, the commissioner shall spend money 
  2.6   from the account as follows: 
  2.7      (1) one-third must be spent for improvements to trunk 
  2.8   highways in at-risk interregional corridors located primarily or 
  2.9   entirely outside the seven-county metropolitan area; 
  2.10     (2) one-third must be spent for removal of significant 
  2.11  highway bottlenecks within the metropolitan area; and 
  2.12     (3) one-third must be spent for trunk highway safety and 
  2.13  capacity improvement projects including but not limited to the 
  2.14  addition of lanes on trunk highway corridors with known safety 
  2.15  problems.  In spending the amount under this clause, the 
  2.16  commissioner shall select from projects submitted by local units 
  2.17  of government.  All necessary additional right-of-way, 
  2.18  engineering costs, and local cost share for these projects are 
  2.19  the responsibility of local units of government. 
  2.20     (c) In fiscal year 2004 and subsequent years: 
  2.21     (1) 47.5 percent must be spent for trunk highways in 
  2.22  at-risk interregional corridors located primarily or entirely 
  2.23  outside the seven-county metropolitan area; 
  2.24     (2) 47.5 percent must be spent for removal of significant 
  2.25  highway bottlenecks within the metropolitan area; and 
  2.26     (3) five percent must be spent for trunk highway-related 
  2.27  advantages to transit. 
  2.28     (d) Notwithstanding any other provision of this section, 
  2.29  money made available to the commissioner under paragraph (b), 
  2.30  clause (3), in fiscal year 2003 may be spent in fiscal years 
  2.31  2003, 2004, and 2005. 
  2.32     Sec. 2.  Laws 2002, chapter 220, article 10, section 37, is 
  2.33  amended to read: 
  2.34     Sec. 37.  [MORATORIUM ON CONSULTANT CONTRACTS.] 
  2.35     (a) An entity in the executive branch of state government, 
  2.36  including the Minnesota state colleges and universities, may not 
  3.1   enter into a new contract or renew an existing contract for 
  3.2   professional or technical services after the effective date of 
  3.3   this section and before July 1, 2003.  This section does not 
  3.4   apply to a contract: 
  3.5      (1) that relates to a threat to public health, welfare, or 
  3.6   safety that threatens the functioning of government, the 
  3.7   protection of property, or the health or safety of people; or 
  3.8      (2) that is paid for entirely with federal funds received 
  3.9   before the effective date of this section; or 
  3.10     (3) that is paid entirely with funds from the trunk highway 
  3.11  fund, county state-aid highway fund, or municipal state-aid 
  3.12  street fund.  
  3.13     (b) An entity in the executive branch may apply for a 
  3.14  waiver of the moratorium by sending a letter with reasons for 
  3.15  the request to the commissioner of administration for executive 
  3.16  branch entities.  Upon a finding that a consultant contract is 
  3.17  necessary, the commissioner may grant a waiver.  The decision of 
  3.18  the commissioner is final and not subject to appeal.  A monthly 
  3.19  report of all waivers granted must be filed by the entity 
  3.20  granting the waiver.  The report must be published on the 
  3.21  entity's Web site, and copies must be provided to the chairs of 
  3.22  the house ways and means and senate finance committees and to 
  3.23  the legislative reference library. 
  3.24     Sec. 3.  [BOND SALE AUTHORIZATION.] 
  3.25     The commissioner of finance shall sell and issue bonds of 
  3.26  the state in an amount up to $750,000,000 in the manner, upon 
  3.27  the terms, and with the effect prescribed by Minnesota Statutes, 
  3.28  sections 167.50 to 167.52, and by the Minnesota Constitution, 
  3.29  article XIV, section 11, at the times and in the amounts 
  3.30  requested by the commissioner of transportation.  The proceeds 
  3.31  of the bonds, except accrued interest and any premium received 
  3.32  on the sale of the bonds, must be credited to the major project 
  3.33  account in the trunk highway fund. 
  3.34     Sec. 4.  [ENCUMBRANCE LIMIT.] 
  3.35     Encumbrances by the commissioner of transportation of money 
  3.36  appropriated to the commissioner from the major projects account 
  4.1   in the trunk highway fund under section 1 may not exceed the 
  4.2   following limits: 
  4.3      (1) in fiscal year 2003, $150,000,000; 
  4.4      (2) in fiscal year 2004, $50,000,000; 
  4.5      (3) in fiscal year 2005, $150,000,000; and 
  4.6      (4) in fiscal years 2006 and 2007, $200,000,000 each year.  
  4.7      Sec. 5.  [EFFECTIVE DATE.] 
  4.8      Sections 1, 3, and 4 are effective July 1, 2002.  Section 2 
  4.9   is effective the day following final enactment.