<a id="pl.1.3"></a><var>1.3</var>planning provisions related to Department of Transportation; requiring reports;<br/>
<a id="pl.1.4"></a><var>1.4</var>amending Minnesota Statutes 2008, sections 161.53; 165.03, by adding a <br/>
<a id="pl.1.5"></a><var>1.5</var>subdivision; 174.02, subdivisions 1a, 2, by adding a subdivision; 174.03, <br/>
<a id="pl.1.6"></a><var>1.6</var>subdivisions 1a, 4, by adding a subdivision; proposing coding for new law in <br/>
<a id="pl.1.7"></a><var>1.7</var>Minnesota Statutes, chapter 167.<br/>
<a id="pl.1.8"></a><var>1.8</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.9"></a><var>1.9</var>    Section 1. Minnesota Statutes 2008, section 161.53, is amended to read:<br/>
<a id="pl.1.10"></a><var>1.10</var><b>161.53 RESEARCH ACTIVITIES.</b><br/>
<a id="pl.1.11"></a><var>1.11</var>    (a) The commissioner may set aside in each fiscal year up to two percent of the <br/>
<a id="pl.1.12"></a><var>1.12</var>total amount of all funds appropriated to the commissioner other than county state-aid <br/>
<a id="pl.1.13"></a><var>1.13</var>and municipal state-aid highway funds for transportation research including public and <br/>
<a id="pl.1.14"></a><var>1.14</var>private research partnerships. The commissioner shall spend this money for (1) research <br/>
<a id="pl.1.15"></a><var>1.15</var>to improve the design, construction, maintenance, management, and environmental <br/>
<a id="pl.1.16"></a><var>1.16</var>compatibility of transportation systems, including research into and implementation of <br/>
<a id="pl.1.17"></a><var>1.17</var>innovations in bridge-monitoring technology and bridge inspection technology; bridge <br/>
<a id="pl.1.18"></a><var>1.18</var>inspection techniques and best practices; and the cost-effectiveness of deferred or lower <br/>
<a id="pl.1.19"></a><var>1.19</var>cost highway and bridge design and maintenance activities and their impacts on long-term <br/>
<a id="pl.1.20"></a><var>1.20</var>trunk highway costs and maintenance needs; (2) research on transportation policies that <br/>
<a id="pl.1.21"></a><var>1.21</var>enhance energy efficiency and economic development; (3) programs for implementing <br/>
<a id="pl.1.22"></a><var>1.22</var>and monitoring research results; and (4) development of transportation education and <br/>
<a id="pl.1.23"></a><var>1.23</var>outreach activities. <br/>
<a id="pl.1.24"></a><var>1.24</var>(b) Of all funds appropriated to the commissioner other than state-aid funds, the <br/>
<a id="pl.1.25"></a><var>1.25</var>commissioner shall spend at least 0.1 percent, but not exceeding $1,200,000 in any fiscal <br/>
<a id="pl.2.1"></a><var>2.1</var>year, for research and related activities performed by the Center for Transportation Studies <br/>
<a id="pl.2.2"></a><var>2.2</var>of the University of Minnesota. The center shall establish a technology transfer and <br/>
<a id="pl.2.3"></a><var>2.3</var>training center for Minnesota transportation professionals. <br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.2.4"></a><var>2.4</var>    Sec. 2. Minnesota Statutes 2008, section 165.03, is amended by adding a subdivision <br/>
<a id="pl.2.5"></a><var>2.5</var>to read:<br/>
<a id="pl.2.6"></a><var>2.6</var>    Subd. 8. <b>Biennial report on bridge inspection quality assurance.</b>  By February <br/>
<a id="pl.2.7"></a><var>2.7</var>1 of each odd-numbered year, the commissioner shall submit a report electronically to <br/>
<a id="pl.2.8"></a><var>2.8</var>the members of the senate and house of representatives committees with jurisdiction over <br/>
<a id="pl.2.9"></a><var>2.9</var>transportation policy and finance concerning quality assurance for bridge inspections. <br/>
<a id="pl.2.10"></a><var>2.10</var>At a minimum, the report must:<br/>
<a id="pl.2.11"></a><var>2.11</var>(1) summarize the bridge inspection quality assurance and quality control procedures <br/>
<a id="pl.2.12"></a><var>2.12</var>used in Minnesota;<br/>
<a id="pl.2.13"></a><var>2.13</var>(2) identify any substantive changes to quality assurance and quality control <br/>
<a id="pl.2.14"></a><var>2.14</var>procedures made in the previous two years;<br/>
<a id="pl.2.15"></a><var>2.15</var>(3) summarize and provide a briefing on findings from bridge inspection quality <br/>
<a id="pl.2.16"></a><var>2.16</var>reviews performed in the previous two years;<br/>
<a id="pl.2.17"></a><var>2.17</var>(4) identify actions taken and planned in response to findings from bridge inspection <br/>
<a id="pl.2.18"></a><var>2.18</var>quality reviews performed in the previous two years;<br/>
<a id="pl.2.19"></a><var>2.19</var>(5) summarize the results of any bridge inspection compliance review by the Federal <br/>
<a id="pl.2.20"></a><var>2.20</var>Highway Administration; and<br/>
<a id="pl.2.21"></a><var>2.21</var>(6) identify actions in response to the Federal Highway Administration compliance <br/>
<a id="pl.2.22"></a><var>2.22</var>review taken by the department in order to reach full compliance.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.2.23"></a><var>2.23</var>    Sec. 3. <b>[167.60] DEBT-FINANCING MANAGEMENT POLICY.</b><br/>
<a id="pl.2.24"></a><var>2.24</var>(a) By July 1, 2010, the commissioner shall develop a debt-financing management <br/>
<a id="pl.2.25"></a><var>2.25</var>policy for trunk highway bonds, federal advanced construction funds, and other forms of <br/>
<a id="pl.2.26"></a><var>2.26</var>highway financing based on debt or future repayment. The policy must be used by the <br/>
<a id="pl.2.27"></a><var>2.27</var>department to guide decision making related to debt financing. The commissioner may <br/>
<a id="pl.2.28"></a><var>2.28</var>update the policy as necessary. In developing and updating the policy, the commissioner <br/>
<a id="pl.2.29"></a><var>2.29</var>shall consult with the commissioner of management and budget and the chairs and ranking <br/>
<a id="pl.2.30"></a><var>2.30</var>minority members of the senate and house of representatives committees with jurisdiction <br/>
<a id="pl.2.31"></a><var>2.31</var>over transportation finance.<br/>
<a id="pl.2.32"></a><var>2.32</var>(b) The debt-financing management policy must address relevant financial issues, <br/>
<a id="pl.2.33"></a><var>2.33</var>including, but not limited to:<br/>
<a id="pl.3.1"></a><var>3.1</var>(1) limits on cumulative amounts of debt for the trunk highway system from all <br/>
<a id="pl.3.2"></a><var>3.2</var>state and federal sources;<br/>
<a id="pl.3.3"></a><var>3.3</var>(2) eligibility of projects for debt-financing funds;<br/>
<a id="pl.3.4"></a><var>3.4</var>(3) allocation and use of funds;<br/>
<a id="pl.3.5"></a><var>3.5</var>(4) terms of debt service and methods of repayment;<br/>
<a id="pl.3.6"></a><var>3.6</var>(5) management of trunk highway fund balance impacts; and<br/>
<a id="pl.3.7"></a><var>3.7</var>(6) mitigation of risks from different forms of debt financing.<br/>
<a id="pl.3.8"></a><var>3.8</var>(c) Upon creation or formal revision of the debt-financing management policy, the <br/>
<a id="pl.3.9"></a><var>3.9</var>commissioner shall distribute electronic copies to the members of the senate and house of <br/>
<a id="pl.3.10"></a><var>3.10</var>representatives committees with jurisdiction over transportation finance, and as required <br/>
<a id="pl.3.11"></a><var>3.11</var>for reports to the legislature under section 3.195, subdivision 1.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.3.12"></a><var>3.12</var>    Sec. 4. Minnesota Statutes 2008, section 174.02, subdivision 1a, is amended to read:<br/>
<a id="pl.3.13"></a><var>3.13</var>    Subd. 1a.  <b>Mission; efficiency; legislative report, recommendations.</b> It is part <br/>
<a id="pl.3.14"></a><var>3.14</var>of the department's mission that within the department's resources the commissioner <br/>
<a id="pl.3.15"></a><var>3.15</var>shall endeavor to: <br/>
<a id="pl.3.16"></a><var>3.16</var>    (1) prevent the waste or unnecessary spending of public money; <br/>
<a id="pl.3.17"></a><var>3.17</var>    (2) use innovative fiscal and human resource practices to manage the state's <br/>
<a id="pl.3.18"></a><var>3.18</var>resources and operate the department as efficiently as possible; <br/>
<a id="pl.3.19"></a><var>3.19</var>    (3) minimize the degradation of air and water quality; <br/>
<a id="pl.3.20"></a><var>3.20</var>    (4) coordinate the department's activities wherever appropriate with the activities <br/>
<a id="pl.3.21"></a><var>3.21</var>of other governmental agencies; <br/>
<a id="pl.3.22"></a><var>3.22</var>    (5) use technology where appropriate to increase agency productivity, improve <br/>
<a id="pl.3.23"></a><var>3.23</var>customer service, increase public access to information about government, and increase <br/>
<a id="pl.3.24"></a><var>3.24</var>public participation in the business of government; <br/>
<a id="pl.3.25"></a><var>3.25</var>    (6) utilize constructive and cooperative labor-management practices to the extent <br/>
<a id="pl.3.26"></a><var>3.26</var>otherwise required by chapters 43A and 179A; <br/>
<a id="pl.3.27"></a><var>3.27</var>    (7) ensure that the safety, maintenance, and preservation of Minnesota's <br/>
<a id="pl.3.28"></a><var>3.28</var>transportation infrastructure is a primary priority;<br/>
<a id="pl.3.29"></a><var>3.29</var>(8) report to the legislature on the performance of agency operations and the <br/>
<a id="pl.3.30"></a><var>3.30</var>accomplishment of agency goals in the agency's biennial budget according to section <br/>
<statute_ref><a id="pl.3.31"></a><var>3.31</var>16A.10, subdivision 1
         </statute_ref>; and <br/>
<a id="pl.3.32"></a><var>3.32</var>    (8) (9) recommend to the legislature appropriate changes in law necessary to carry <br/>
<a id="pl.3.33"></a><var>3.33</var>out the mission and improve the performance of the department. <br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.3.34"></a><var>3.34</var>    Sec. 5. Minnesota Statutes 2008, section 174.02, subdivision 2, is amended to read:<br/>
<a id="pl.4.1"></a><var>4.1</var>    Subd. 2. <b>Unclassified positions.</b> The commissioner may establish four positions <br/>
<a id="pl.4.2"></a><var>4.2</var>in the unclassified service at the deputy and assistant commissioner, assistant to <br/>
<a id="pl.4.3"></a><var>4.3</var>commissioner or personal secretary levels. No more than two of these positions shall be at <br/>
<a id="pl.4.4"></a><var>4.4</var>the deputy commissioner level. One of the four positions in the unclassified service must <br/>
<a id="pl.4.5"></a><var>4.5</var>serve as the chief engineer and be licensed as a professional engineer under section 326.02.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.4.6"></a><var>4.6</var>    Sec. 6. Minnesota Statutes 2008, section 174.02, is amended by adding a subdivision <br/>
<a id="pl.4.7"></a><var>4.7</var>to read:<br/>
<a id="pl.4.8"></a><var>4.8</var>    Subd. 8. <b>Electronic reports.</b> For any legislative report required to be submitted by <br/>
<a id="pl.4.9"></a><var>4.9</var>the commissioner by law, in which the report may or must be submitted electronically, the <br/>
<a id="pl.4.10"></a><var>4.10</var>commissioner shall meet the requirements under section 3.195, subdivision 1.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.4.11"></a><var>4.11</var>    Sec. 7. Minnesota Statutes 2008, section 174.03, subdivision 1a, is amended to read:<br/>
<a id="pl.4.12"></a><var>4.12</var>    Subd. 1a. <b>Revision of </b><b>state</b><b> statewide multimodal</b><b> transportation plan.</b> (a) The <br/>
<a id="pl.4.13"></a><var>4.13</var>commissioner shall revise the state statewide multimodal transportation plan by January 1, <br/>
<a id="pl.4.14"></a><var>4.14</var>1996, January 1, 2000, and, if the requirements of clauses (1) and (2) have been met in the <br/>
<a id="pl.4.15"></a><var>4.15</var>previous revision 2016, and by January 1 of every third even-numbered year six years <br/>
<a id="pl.4.16"></a><var>4.16</var>thereafter. Before final adoption of a revised plan, the commissioner shall hold a hearing <br/>
<a id="pl.4.17"></a><var>4.17</var>to receive public comment on the preliminary draft of the revised plan. <br/>
<a id="pl.4.18"></a><var>4.18</var>The (b) Each revised state statewide multimodal transportation plan must:<br/>
<a id="pl.4.19"></a><var>4.19</var>(1) incorporate the goals of the state transportation system in section 
         <statute_ref>174.01</statute_ref>; and <br/>
<a id="pl.4.20"></a><var>4.20</var>(2) establish objectives, policies, and strategies for achieving those goals.; and<br/>
<a id="pl.4.21"></a><var>4.21</var>(3) identify performance targets for measuring progress and achievement of <br/>
<a id="pl.4.22"></a><var>4.22</var>transportation system goals, objectives, or policies.<br/>
<a id="pl.4.23"></a><var>4.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.4.24"></a><var>4.24</var>    Sec. 8. Minnesota Statutes 2008, section 174.03, is amended by adding a subdivision <br/>
<a id="pl.4.25"></a><var>4.25</var>to read:<br/>
<a id="pl.4.26"></a><var>4.26</var>    Subd. 1c. <b>Statewide highway 20-year capital investment plan.</b> By July 2012 and <br/>
<a id="pl.4.27"></a><var>4.27</var>in conjunction with each future revision of the statewide multimodal transportation plan, <br/>
<a id="pl.4.28"></a><var>4.28</var>the commissioner shall prepare a 20-year statewide highway capital investment plan that:<br/>
<a id="pl.4.29"></a><var>4.29</var>(1) incorporates performance measures and targets for assessing progress and <br/>
<a id="pl.4.30"></a><var>4.30</var>achievement of the state's transportation goals, objectives, and policies identified in this <br/>
<a id="pl.4.31"></a><var>4.31</var>chapter for the state trunk highway system, and those goals, objectives, and policies <br/>
<a id="pl.4.32"></a><var>4.32</var>established in the statewide multimodal transportation plan. Performance targets must be <br/>
<a id="pl.4.33"></a><var>4.33</var>based on objectively verifiable measures, and address, at a minimum, preservation and <br/>
<a id="pl.5.1"></a><var>5.1</var>maintenance of the structural condition of state highway bridges and pavements, safety, <br/>
<a id="pl.5.2"></a><var>5.2</var>and mobility;<br/>
<a id="pl.5.3"></a><var>5.3</var>(2) summarizes trends and impacts for each performance target over the past five <br/>
<a id="pl.5.4"></a><var>5.4</var>years;<br/>
<a id="pl.5.5"></a><var>5.5</var>(3) summarizes the amount and analyzes the impact of the department's capital <br/>
<a id="pl.5.6"></a><var>5.6</var>investments and priorities over the past five years on each performance target, including a <br/>
<a id="pl.5.7"></a><var>5.7</var>comparison of prior plan projected costs with actual costs;<br/>
<a id="pl.5.8"></a><var>5.8</var>(4) identifies the investments required to meet the established performance targets <br/>
<a id="pl.5.9"></a><var>5.9</var>over the next 20-year period;<br/>
<a id="pl.5.10"></a><var>5.10</var>(5) projects available state and federal funding over the 20-year period;<br/>
<a id="pl.5.11"></a><var>5.11</var>(6) identifies strategies to ensure the most efficient use of existing transportation <br/>
<a id="pl.5.12"></a><var>5.12</var>infrastructure, and to maximize the performance benefits of projected available funding;<br/>
<a id="pl.5.13"></a><var>5.13</var>(7) establishes investment priorities for projected funding, including a schedule of <br/>
<a id="pl.5.14"></a><var>5.14</var>major projects or improvement programs for the 20-year period together with projected <br/>
<a id="pl.5.15"></a><var>5.15</var>costs and impact on performance targets; and<br/>
<a id="pl.5.16"></a><var>5.16</var>(8) identifies those performance targets identified under clause (1) not expected to <br/>
<a id="pl.5.17"></a><var>5.17</var>meet the target outcome over the 20-year period together with alternative strategies that <br/>
<a id="pl.5.18"></a><var>5.18</var>could be implemented to meet the targets.<br/>
<a id="pl.5.19"></a><var>5.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.9.0"></a><a id="pl.5.20"></a><var>5.20</var>    Sec. 9. Minnesota Statutes 2008, section 174.03, subdivision 4, is amended to read:<br/>
<a id="pl.5.21"></a><var>5.21</var>    Subd. 4. <b>Other duties.</b> The commissioner shall:<br/>
<a id="pl.5.22"></a><var>5.22</var>(1) construct and maintain transportation facilities as authorized by law;<br/>
<a id="pl.5.23"></a><var>5.23</var>(2) cooperate with, and may provide technical and financial assistance to, the <br/>
<a id="pl.5.24"></a><var>5.24</var>Metropolitan Council and regional development commissions in the regional transportation <br/>
<a id="pl.5.25"></a><var>5.25</var>planning process, in accordance with mutually acceptable terms and conditions;<br/>
<a id="pl.5.26"></a><var>5.26</var>(3) cooperate with, and may provide planning and technical assistance upon the <br/>
<a id="pl.5.27"></a><var>5.27</var>request of, any political subdivision or other governmental agency in accordance with <br/>
<a id="pl.5.28"></a><var>5.28</var>mutually accepted terms and conditions, except as otherwise restricted by law; and<br/>
<a id="pl.5.29"></a><var>5.29</var>(4) develop, revise, and monitor a statewide rail transportation plan as part of the <br/>
<a id="pl.5.30"></a><var>5.30</var>statewide transportation planning process, including a study and evaluation of alternative <br/>
<a id="pl.5.31"></a><var>5.31</var>methods for insuring adequate and economical transportation of agricultural commodities, <br/>
<a id="pl.5.32"></a><var>5.32</var>supplies, and other goods to and from rural areas of the state. The plan shall include an <br/>
<a id="pl.5.33"></a><var>5.33</var>analysis of rail lines in the state for the purpose of determining (i) eligibility of rail lines <br/>
<a id="pl.5.34"></a><var>5.34</var>for assistance under federal and state rail assistance programs, (ii) eligibility of rail lines <br/>
<a id="pl.6.1"></a><var>6.1</var>for inclusion in the state rail bank, and (iii) the actions required by the state to insure the <br/>
<a id="pl.6.2"></a><var>6.2</var>continuation of rail service that meets essential state needs and objectives.; and<br/>
<a id="pl.6.3"></a><var>6.3</var>(5) appoint an employee to serve as controller to establish and maintain a system of <br/>
<a id="pl.6.4"></a><var>6.4</var>internal controls consistent with section 16A.057, subdivision 1, to ensure the accuracy, <br/>
<a id="pl.6.5"></a><var>6.5</var>thoroughness, and reliability of financial, asset management, and performance information <br/>
<a id="pl.6.6"></a><var>6.6</var>generated by the department and reported to the legislature. The controller shall report <br/>
<a id="pl.6.7"></a><var>6.7</var>annually, at a minimum, to the chairs and ranking minority members of the senate and <br/>
<a id="pl.6.8"></a><var>6.8</var>house of representatives committees with jurisdiction over transportation policy and <br/>
<a id="pl.6.9"></a><var>6.9</var>finance concerning agency productivity, progress toward performance-based agency <br/>
<a id="pl.6.10"></a><var>6.10</var>budgeting, and agency efficiency. The report on agency efficiency must include cost <br/>
<a id="pl.6.11"></a><var>6.11</var>estimates of projects, with engineering, right-of-way acquisition, and construction costs <br/>
<a id="pl.6.12"></a><var>6.12</var>compared to actual costs; and district-to-district comparisons of estimated and actual costs <br/>
<a id="pl.6.13"></a><var>6.13</var>and results achieved. Effectiveness of the internal controls must be tested annually by <br/>
<a id="pl.6.14"></a><var>6.14</var>auditors using generally accepted auditing standards.<br/>
<br/>
<a id="bill.0.10.0"></a><a id="pl.6.15"></a><var>6.15</var>    Sec. 10. <b>REPORT ON DEPARTMENT OF TRANSPORTATION </b><br/>
<a id="pl.6.16"></a><var>6.16</var><b>MANAGEMENT CHANGES.</b><br/>
<a id="pl.6.17"></a><var>6.17</var>(a) By February 1, 2011, the commissioner of transportation shall submit a report <br/>
<a id="pl.6.18"></a><var>6.18</var>electronically to the members of the senate and house of representatives committees <br/>
<a id="pl.6.19"></a><var>6.19</var>with jurisdiction over transportation policy and finance concerning recent changes in the <br/>
<a id="pl.6.20"></a><var>6.20</var>department's organizational structure, internal procedures and practices, and anticipated <br/>
<a id="pl.6.21"></a><var>6.21</var>budget. The report must include, but is not limited to:<br/>
<a id="pl.6.22"></a><var>6.22</var>(1) a summary and review of the department organizational structure for bridge <br/>
<a id="pl.6.23"></a><var>6.23</var>management, maintenance, and inspections, including a brief explanation of any relevant <br/>
<a id="pl.6.24"></a><var>6.24</var>structural or organizational changes made since August 1, 2007;<br/>
<a id="pl.6.25"></a><var>6.25</var>(2) an analysis of the division of bridge-related duties and decision-making <br/>
<a id="pl.6.26"></a><var>6.26</var>responsibilities between districts and central administration;<br/>
<a id="pl.6.27"></a><var>6.27</var>(3) a summary of current agency procedures and processes, and any changes made <br/>
<a id="pl.6.28"></a><var>6.28</var>since August 1, 2007, related to:<br/>
<a id="pl.6.29"></a><var>6.29</var>(i) initiation of bridge re-rating and use of bridge inspection findings in the re-rating <br/>
<a id="pl.6.30"></a><var>6.30</var>process;<br/>
<a id="pl.6.31"></a><var>6.31</var>(ii) implementation of agencywide standards for documenting bridge inspection <br/>
<a id="pl.6.32"></a><var>6.32</var>findings and decision making for postinspection bridge maintenance; and<br/>
<a id="pl.6.33"></a><var>6.33</var>(iii) other changes designed to ensure or enhance the safety of Minnesota's <br/>
<a id="pl.6.34"></a><var>6.34</var>transportation infrastructure; and<br/>
<a id="pl.7.1"></a><var>7.1</var>(4) a budget analysis of anticipated funding and funding allocations for pavement <br/>
<a id="pl.7.2"></a><var>7.2</var>preservation and highway maintenance, safety projects, mobility enhancement projects, <br/>
<a id="pl.7.3"></a><var>7.3</var>and highway and bridge construction, for fiscal years 2012 through 2018, including a <br/>
<a id="pl.7.4"></a><var>7.4</var>discussion of any anticipated budgetary challenges or risks.<br/>
<a id="pl.7.5"></a><var>7.5</var>(b) In addition to an electronic report, the commissioner shall prepare a summary of <br/>
<a id="pl.7.6"></a><var>7.6</var>findings from the report for distribution and oral testimony to the chairs of the senate and <br/>
<a id="pl.7.7"></a><var>7.7</var>house of representatives committees with jurisdiction over transportation finance, who <br/>
<a id="pl.7.8"></a><var>7.8</var>shall make every reasonable effort to arrange testimony from the department during the <br/>
<a id="pl.7.9"></a><var>7.9</var>2011 legislative session.<br/>