1.1 	A bill for an act
1.2 	relating to transportation; creating highway safety improvement account; 
1.3 	amending eligible purposes for expenditure of five percent of highway user 
1.4 	tax distribution fund; amending Minnesota Statutes 2006, section 161.081, 
1.5 	subdivision 3.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2006, section 161.081, subdivision 3, is amended to read:
1.8 		Subd. 3.Flexible highway account; turnback and safety accounts. (a) The 
1.9 	flexible highway account is created in the state treasury. Money in the account may be 
1.10 	used either for the restoration of former trunk highways that have reverted to counties or to 
1.11 	statutory or home rule charter cities; for safety improvements on trunk highways, county 
1.12 	highways, or municipal highways or streets; or for regular trunk highway purposes.
1.13 	(b) For purposes of this subdivision, "restoration" means the level of effort required 
1.14 	to improve the route that will be turned back to an acceptable condition as determined 
1.15 	by agreement made between the commissioner and the county or city before the route 
1.16 	is turned back.
1.17 	(c) The commissioner shall review the need for funds to restore highways that have 
1.18 	been or will be turned back, the need for highway safety improvements, and the need for 
1.19 	funds for the trunk highway system. The commissioner shall determine, on a biennial 
1.20 	basis, the percentage of this flexible account to be used for county turnbacks, for municipal 
1.21 	turnbacks, for highway safety improvements, and for regular trunk highway projects. The 
1.22 	commissioner shall make this determination only after meeting and holding discussions 
1.23 	with committees selected by the statewide associations of both county commissioners 
1.24 	and municipal officials.
2.1 	(d) Money that will be used for the restoration of trunk highways that have reverted 
2.2 	or that will revert to cities must be deposited in the municipal turnback account, which is 
2.3 	created in the state treasury.
2.4 	(e) Money that will be used for the restoration of trunk highways that have reverted 
2.5 	or that will revert to counties must be deposited in the county turnback account, which is 
2.6 	created in the state treasury.
2.7 	(f) Money that will be used for safety improvements on trunk highways, county 
2.8 	highways, or municipal highways or streets must be deposited in the highway safety 
2.9 	improvement account, which is created in the state treasury.
2.10 	(g) As part of each biennial budget submission to the legislature, the commissioner 
2.11 	shall describe how the money in the flexible highway account will be apportioned among 
2.12 	the county turnback account, the highway safety improvement account, the municipal 
2.13 	turnback account, and the trunk highway fund.
2.14 	(g)(h) Money apportioned from the flexible highway account to the trunk highway 
2.15 	fund must be used for state road construction and engineering costs.