1.1                          A bill for an act 
  1.2             relating to highways; allowing counties right of first 
  1.3             refusal in toll facility contracts; requiring 
  1.4             commissioner of transportation to allow public review 
  1.5             of proposed toll facility development agreement; 
  1.6             prohibiting private toll facility operator from 
  1.7             acquiring right-of-way by donation; prohibiting 
  1.8             noncompete clause in private toll facility development 
  1.9             agreement; including toll facilities as element of 
  1.10            final layout for municipal consent purposes; amending 
  1.11            Minnesota Statutes 2002, sections 160.85, subdivisions 
  1.12            1, 3, 3a, 5; 160.86; 160.88; 161.162, subdivision 2; 
  1.13            161.163, subdivision 1; 161.164, subdivision 2; 
  1.14            161.165, subdivisions 2, 3, 4; 161.166, subdivisions 
  1.15            2, 3. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 2002, section 160.85, 
  1.18  subdivision 1, is amended to read: 
  1.19     Subdivision 1.  [ROAD AUTHORITY.] A road authority may 
  1.20  solicit or accept proposals from and enter into development 
  1.21  agreements with counties or private operators for developing, 
  1.22  financing, designing, constructing, improving, rehabilitating, 
  1.23  owning, and operating toll facilities wholly or partly within 
  1.24  the road authority's jurisdiction.  A road authority may solicit 
  1.25  proposals from private operators only after the county in which 
  1.26  the proposed toll facilities will be located has refused to 
  1.27  submit a proposal.  If a road authority solicits toll facility 
  1.28  proposals, it must publish a notice of solicitation in the State 
  1.29  Register. 
  1.30     Sec. 2.  Minnesota Statutes 2002, section 160.85, 
  2.1   subdivision 3, is amended to read: 
  2.2      Subd. 3.  [APPROVAL.] No road authority and private 
  2.3   operator may execute a development agreement without the 
  2.4   approval of the final agreement by the commissioner.  A road 
  2.5   authority and private operator in the metropolitan area must 
  2.6   obtain the approvals required in sections 161.162 to 161.167 and 
  2.7   473.166.  Except as otherwise provided in sections 161.162 to 
  2.8   161.167, The governing body of a county or municipality through 
  2.9   which a facility passes may veto the project within 30 days of 
  2.10  approval by the commissioner. 
  2.11     Sec. 3.  Minnesota Statutes 2002, section 160.85, 
  2.12  subdivision 3a, is amended to read: 
  2.13     Subd. 3a.  [INFORMATION MEETING.] Before approving or 
  2.14  denying a development agreement, the commissioner shall hold a 
  2.15  public information meeting in any municipality or county in 
  2.16  which any portion of the proposed toll facility runs.  The 
  2.17  commissioner shall determine the time and place of the 
  2.18  information meeting.  The commissioner shall make the proposed 
  2.19  development agreement available for public review at the meeting 
  2.20  and for a reasonable period of time before the meeting. 
  2.21     Sec. 4.  Minnesota Statutes 2002, section 160.85, 
  2.22  subdivision 5, is amended to read: 
  2.23     Subd. 5.  [RIGHT-OF-WAY ACQUISITION.] A private operator 
  2.24  may acquire right-of-way by donation, lease, or purchase.  A 
  2.25  road authority may acquire right-of-way by donation, purchase, 
  2.26  or eminent domain and may donate, sell, or lease a right-of-way 
  2.27  to a private operator for fair value. 
  2.28     Sec. 5.  Minnesota Statutes 2002, section 160.86, is 
  2.29  amended to read: 
  2.30     160.86 [TOLL FACILITY DEVELOPMENT AGREEMENT; REQUIREMENTS.] 
  2.31     Subdivision 1.  [REQUIRED PROVISIONS.] A development 
  2.32  agreement must include the following provisions: 
  2.33     (a) The toll facility must meet the road authority's 
  2.34  standards of design and construction for roads and bridges of 
  2.35  the same functional classification. 
  2.36     (b) The commissioner must review and approve the location 
  3.1   and design of a bridge over navigable waters as if the bridge 
  3.2   were constructed by a road authority.  This requirement does not 
  3.3   diminish the private operator's responsibility for bridge safety.
  3.4      (c) The private operator shall manage and operate the toll 
  3.5   facility in cooperation with the road authority and subject to 
  3.6   the development agreement. 
  3.7      (d) The toll facility is subject to regular inspections by 
  3.8   the road authority and the commissioner. 
  3.9      (e) The agreement must provide the terms and conditions of 
  3.10  maintenance, snow removal, and police services to the toll 
  3.11  facility.  The road authority must provide the services.  The 
  3.12  services must meet at least the road authority's standards for 
  3.13  facilities of the same functional classification. 
  3.14     (f) The agreement must establish a reasonable rate of 
  3.15  return on investment and capital during the term of the 
  3.16  agreement. 
  3.17     Subd. 2.  [PROHIBITED PROVISIONS.] (a) A development 
  3.18  agreement may not include a noncompete clause or any provision 
  3.19  that would restrict the road authority from constructing, 
  3.20  improving, or maintaining any highway within its jurisdiction. 
  3.21     (b) The road authority may not allow the private operator 
  3.22  to acquire or use the right-of-way unless the operator gives 
  3.23  fair value for the interest in the property. 
  3.24     Sec. 6.  Minnesota Statutes 2002, section 160.88, is 
  3.25  amended to read: 
  3.26     160.88 [PUBLIC TOLL FACILITIES.] 
  3.27     Subject to the provisions of sections 161.162 to 161.167 
  3.28  and 473.166, a road authority may develop, finance, design, 
  3.29  construct, improve, rehabilitate, own, and operate a toll 
  3.30  facility. 
  3.31     Sec. 7.  Minnesota Statutes 2002, section 161.162, 
  3.32  subdivision 2, is amended to read: 
  3.33     Subd. 2.  [FINAL LAYOUT.] (a) "Final layout" means 
  3.34  geometric layouts and supplemental drawings that show the 
  3.35  location, character, dimensions, access, and explanatory 
  3.36  information about the highway construction or improvement work 
  4.1   being proposed.  "Final layout" includes, where applicable, 
  4.2   traffic lanes, shoulders, trails, intersections, signals, 
  4.3   bridges, approximate right-of-way limits, existing ground line 
  4.4   and proposed grade line of the highway, turn lanes, access 
  4.5   points and closures, sidewalks, proposed design speed, noise 
  4.6   walls, transit considerations, auxiliary lanes, interchange 
  4.7   locations, interchange types, sensitive areas, existing 
  4.8   right-of-way, traffic volume and turning movements, location of 
  4.9   stormwater drainage, location of municipal utilities, toll 
  4.10  facilities, project schedule and estimated cost, and the name of 
  4.11  the project manager. 
  4.12     (b) "Final layout" does not include a cost participation 
  4.13  agreement.  For purposes of this subdivision "cost participation 
  4.14  agreement" means a document signed by the commissioner and the 
  4.15  governing body of a municipality that states the costs of a 
  4.16  highway construction project that will be paid by the 
  4.17  municipality. 
  4.18     Sec. 8.  Minnesota Statutes 2002, section 161.163, 
  4.19  subdivision 1, is amended to read: 
  4.20     Subdivision 1.  [PROJECTS REQUIRING REVIEW.] Sections 
  4.21  161.162 to 161.167 apply only to projects that alter access, 
  4.22  increase or reduce highway traffic capacity, establish or modify 
  4.23  toll facilities, or require acquisition of permanent 
  4.24  rights-of-way. 
  4.25     Sec. 9.  Minnesota Statutes 2002, section 161.164, 
  4.26  subdivision 2, is amended to read: 
  4.27     Subd. 2.  [GOVERNING BODY ACTION.] (a) Within 15 days of 
  4.28  receiving a final layout from the commissioner, the governing 
  4.29  body shall schedule a public hearing on the final layout.  The 
  4.30  governing body shall, within 60 days of receiving a final layout 
  4.31  from the commissioner, conduct a public hearing at which the 
  4.32  Department of Transportation shall present the final layout for 
  4.33  the project.  The governing body shall give at least 30 days' 
  4.34  notice of the public hearing.  
  4.35     (b) Within 90 days from the date of the public hearing, the 
  4.36  governing body shall approve or disapprove the final layout in 
  5.1   writing, as follows: 
  5.2      (1) If the governing body approves the final layout or does 
  5.3   not disapprove the final layout in writing within 90 days, in 
  5.4   which case the final layout is deemed to be approved, the 
  5.5   commissioner may continue the project development. 
  5.6      (2) If the final construction plans contain changes in 
  5.7   access, traffic capacity, toll facilities, or acquisition of 
  5.8   permanent right-of-way from the final layout approved by the 
  5.9   governing body, the commissioner shall resubmit the portion of 
  5.10  the final construction plans where changes were made to the 
  5.11  governing body. The governing body must approve or disapprove 
  5.12  the changes, in writing, within 60 days from the date the 
  5.13  commissioner submits them. 
  5.14     (3) If the governing body disapproves the final layout, the 
  5.15  commissioner may make modifications requested by the 
  5.16  municipality, decide not to proceed with the project, or refer 
  5.17  the final layout to an appeal board.  The appeal board shall 
  5.18  consist of one member appointed by the commissioner, one member 
  5.19  appointed by the governing body, and a third member agreed upon 
  5.20  by both the commissioner and the governing body.  If the 
  5.21  commissioner and the governing body cannot agree upon the third 
  5.22  member, the chief justice of the Supreme Court shall appoint a 
  5.23  third member within 14 days of the request of the commissioner 
  5.24  to appoint the third member.  
  5.25     Sec. 10.  Minnesota Statutes 2002, section 161.165, 
  5.26  subdivision 2, is amended to read: 
  5.27     Subd. 2.  [ACTION ON APPROVED FINAL LAYOUT.] (a) If the 
  5.28  appeal board recommends approval of the final layout or does not 
  5.29  submit its findings and recommendations within 60 days of the 
  5.30  hearing, in which case the final layout is deemed approved, the 
  5.31  commissioner may prepare substantially similar final 
  5.32  construction plans and proceed with the project.  
  5.33     (b) If the final construction plans change access, traffic 
  5.34  capacity, toll facilities, or acquisition of permanent 
  5.35  right-of-way from the final layout approved by the appeal board, 
  5.36  the commissioner shall submit the portion of the final 
  6.1   construction plans that shows the changes, to the governing body 
  6.2   for its approval or disapproval under section 161.164, 
  6.3   subdivision 2. 
  6.4      Sec. 11.  Minnesota Statutes 2002, section 161.165, 
  6.5   subdivision 3, is amended to read: 
  6.6      Subd. 3.  [ACTION ON FINAL LAYOUT APPROVED WITH CHANGES.] 
  6.7   (a) If, within 60 days, the appeal board recommends approval of 
  6.8   the final layout with modifications, the commissioner may: 
  6.9      (1) prepare final construction plans with the recommended 
  6.10  modifications, notify the governing body, and proceed with the 
  6.11  project; 
  6.12     (2) decide not to proceed with the project; or 
  6.13     (3) prepare final construction plans substantially similar 
  6.14  to the final layout referred to the appeal board, and proceed 
  6.15  with the project.  The commissioner shall, before proceeding 
  6.16  with the project, file a written report with the governing body 
  6.17  and the appeal board stating fully the reasons for doing so. 
  6.18     (b) If the final construction plans contain changes in 
  6.19  access or, traffic capacity, or toll facilities, or require 
  6.20  additional acquisition of permanent right-of-way from the final 
  6.21  layout reviewed by the appeal board or the governing body, the 
  6.22  commissioner shall resubmit the portion of the final 
  6.23  construction plans that shows the changes, to the governing body 
  6.24  for its approval or disapproval under section 161.164, 
  6.25  subdivision 2. 
  6.26     Sec. 12.  Minnesota Statutes 2002, section 161.165, 
  6.27  subdivision 4, is amended to read: 
  6.28     Subd. 4.  [ACTION ON DISAPPROVED FINAL LAYOUT.] (a) If, 
  6.29  within 60 days, the appeal board recommends disapproval of the 
  6.30  final layout, the commissioner may either: 
  6.31     (1) decide not to proceed with the project; or 
  6.32     (2) prepare final construction plans substantially similar 
  6.33  to the final layout referred to the appeal board, notify the 
  6.34  governing body and the appeal board, and proceed with the 
  6.35  project.  Before proceeding with the project, the commissioner 
  6.36  shall file a written report with the governing body and the 
  7.1   appeal board stating fully the reasons for doing so. 
  7.2      (b) If the final construction plans contain changes in 
  7.3   access or, traffic capacity, or toll facilities, or require 
  7.4   additional acquisition of permanent right-of-way from the final 
  7.5   layout reviewed by the appeal board or the governing body, the 
  7.6   commissioner shall resubmit the portion of the final 
  7.7   construction plans that shows the changes, to the governing body 
  7.8   for its approval or disapproval under section 161.164, 
  7.9   subdivision 2. 
  7.10     Sec. 13.  Minnesota Statutes 2002, section 161.166, 
  7.11  subdivision 2, is amended to read: 
  7.12     Subd. 2.  [ACTION ON APPROVED FINAL LAYOUT.] If the appeal 
  7.13  board recommends approval of the final layout or does not submit 
  7.14  its findings or recommendations within 60 days of the hearing, 
  7.15  in which case the the final layout is deemed approved, the 
  7.16  commissioner may prepare substantially similar final 
  7.17  construction plans and proceed with the project.  If the final 
  7.18  construction plans change access or, traffic capacity, or toll 
  7.19  facilities, or require additional acquisition of right-of-way 
  7.20  from the final layout approved by the appeal board, the 
  7.21  commissioner shall submit the portion of the final construction 
  7.22  plan that shows the changes, to the governing body for its 
  7.23  approval or disapproval under section 161.164, subdivision 2. 
  7.24     Sec. 14.  Minnesota Statutes 2002, section 161.166, 
  7.25  subdivision 3, is amended to read: 
  7.26     Subd. 3.  [ACTION ON FINAL LAYOUT APPROVED WITH CHANGES.] 
  7.27  (a) If the appeal board approves the final layout with 
  7.28  modifications, the commissioner may: 
  7.29     (1) prepare final construction plans including the 
  7.30  modifications, notify the governing body, and proceed with the 
  7.31  project; 
  7.32     (2) decide not to proceed with the project; or 
  7.33     (3) prepare a new final layout and resubmit it to the 
  7.34  governing body for approval or disapproval under section 
  7.35  161.164, subdivision 2. 
  7.36     (b) If the final construction plans contain changes in 
  8.1   access or, traffic capacity, or toll facilities, or require 
  8.2   additional acquisition of permanent right-of-way from the final 
  8.3   layout reviewed by the appeal board or the governing body, the 
  8.4   commissioner shall resubmit the portion of the final 
  8.5   construction plans that shows the changes, to the governing body 
  8.6   for its approval or disapproval under section 161.164, 
  8.7   subdivision 2. 
  8.8      Sec. 15.  [EFFECTIVE DATE.] 
  8.9      Sections 1 to 14 are effective the day following final 
  8.10  enactment.