1.1A bill for an act1.2relating to transportation; modifying management, priorities, research, and 1.3planning provisions related to Department of Transportation; requiring reports;1.4amending Minnesota Statutes 2008, sections 161.53; 165.03, by adding a 1.5subdivision; 174.02, subdivisions 1a, 2, by adding a subdivision; 174.03, 1.6subdivisions 1a, 4, by adding a subdivision; proposing coding for new law in 1.7Minnesota Statutes, chapter 167.1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.9    Section 1. Minnesota Statutes 2008, section 161.53, is amended to read:1.10161.53 RESEARCH ACTIVITIES.1.11    (a) The commissioner may set aside in each fiscal year up to two percent of the 1.12total amount of all funds appropriated to the commissioner other than county state-aid 1.13and municipal state-aid highway funds for transportation research including public and 1.14private research partnerships. The commissioner shall spend this money for (1) research 1.15to improve the design, construction, maintenance, management, and environmental 1.16compatibility of transportation systems, including research into and implementation of 1.17innovations in bridge-monitoring technology and bridge inspection technology; bridge 1.18inspection techniques and best practices; and the cost-effectiveness of deferred or lower 1.19cost highway and bridge design and maintenance activities and their impacts on long-term 1.20trunk highway costs and maintenance needs; (2) research on transportation policies that 1.21enhance energy efficiency and economic development; (3) programs for implementing 1.22and monitoring research results; and (4) development of transportation education and 1.23outreach activities. 1.24(b) Of all funds appropriated to the commissioner other than state-aid funds, the 1.25commissioner shall spend at least 0.1 percent, but not exceeding $1,200,000 in any fiscal 2.1year, for research and related activities performed by the Center for Transportation Studies 2.2of the University of Minnesota. The center shall establish a technology transfer and 2.3training center for Minnesota transportation professionals. 2.4    Sec. 2. Minnesota Statutes 2008, section 165.03, is amended by adding a subdivision 2.5to read:2.6    Subd. 8.Biennial report on bridge inspection quality assurance. By February 2.71 of each odd-numbered year, the commissioner shall submit a report electronically to 2.8the members of the senate and house of representatives committees with jurisdiction over 2.9transportation policy and finance concerning quality assurance for bridge inspections. 2.10At a minimum, the report must:2.11(1) summarize the bridge inspection quality assurance and quality control procedures 2.12used in Minnesota;2.13(2) identify any substantive changes to quality assurance and quality control 2.14procedures made in the previous two years;2.15(3) summarize and provide a briefing on findings from bridge inspection quality 2.16reviews performed in the previous two years;2.17(4) identify actions taken and planned in response to findings from bridge inspection 2.18quality reviews performed in the previous two years;2.19(5) summarize the results of any bridge inspection compliance review by the Federal 2.20Highway Administration; and2.21(6) identify actions in response to the Federal Highway Administration compliance 2.22review taken by the department in order to reach full compliance.2.23    Sec. 3. [167.60] DEBT-FINANCING MANAGEMENT POLICY.2.24(a) By July 1, 2010, the commissioner shall develop a debt-financing management 2.25policy for trunk highway bonds, federal advanced construction funds, and other forms of 2.26highway financing based on debt or future repayment. The policy must be used by the 2.27department to guide decision making related to debt financing. The commissioner may 2.28update the policy as necessary. In developing and updating the policy, the commissioner 2.29shall consult with the commissioner of management and budget and the chairs and ranking 2.30minority members of the senate and house of representatives committees with jurisdiction 2.31over transportation finance.2.32(b) The debt-financing management policy must address relevant financial issues, 2.33including, but not limited to:3.1(1) limits on cumulative amounts of debt for the trunk highway system from all 3.2state and federal sources;3.3(2) eligibility of projects for debt-financing funds;3.4(3) allocation and use of funds;3.5(4) terms of debt service and methods of repayment;3.6(5) management of trunk highway fund balance impacts; and3.7(6) mitigation of risks from different forms of debt financing.3.8(c) Upon creation or formal revision of the debt-financing management policy, the 3.9commissioner shall distribute electronic copies to the members of the senate and house of 3.10representatives committees with jurisdiction over transportation finance, and as required 3.11for reports to the legislature under section 3.195, subdivision 1.3.12    Sec. 4. Minnesota Statutes 2008, section 174.02, subdivision 1a, is amended to read:3.13    Subd. 1a.  Mission; efficiency; legislative report, recommendations. It is part 3.14of the department's mission that within the department's resources the commissioner 3.15shall endeavor to: 3.16    (1) prevent the waste or unnecessary spending of public money; 3.17    (2) use innovative fiscal and human resource practices to manage the state's 3.18resources and operate the department as efficiently as possible; 3.19    (3) minimize the degradation of air and water quality; 3.20    (4) coordinate the department's activities wherever appropriate with the activities 3.21of other governmental agencies; 3.22    (5) use technology where appropriate to increase agency productivity, improve 3.23customer service, increase public access to information about government, and increase 3.24public participation in the business of government; 3.25    (6) utilize constructive and cooperative labor-management practices to the extent 3.26otherwise required by chapters 43A and 179A; 3.27    (7) ensure that the safety, maintenance, and preservation of Minnesota's 3.28transportation infrastructure is a primary priority;3.29(8) report to the legislature on the performance of agency operations and the 3.30accomplishment of agency goals in the agency's biennial budget according to section 3.3116A.10, subdivision 1
         ; and 3.32    (8) (9) recommend to the legislature appropriate changes in law necessary to carry 3.33out the mission and improve the performance of the department. 3.34    Sec. 5. Minnesota Statutes 2008, section 174.02, subdivision 2, is amended to read:4.1    Subd. 2. Unclassified positions. The commissioner may establish four positions 4.2in the unclassified service at the deputy and assistant commissioner, assistant to 4.3commissioner or personal secretary levels. No more than two of these positions shall be at 4.4the deputy commissioner level. One of the four positions in the unclassified service must 4.5serve as the chief engineer and be licensed as a professional engineer under section 326.02.4.6    Sec. 6. Minnesota Statutes 2008, section 174.02, is amended by adding a subdivision 4.7to read:4.8    Subd. 8.Electronic reports.For any legislative report required to be submitted by 4.9the commissioner by law, in which the report may or must be submitted electronically, the 4.10commissioner shall meet the requirements under section 3.195, subdivision 1.4.11    Sec. 7. Minnesota Statutes 2008, section 174.03, subdivision 1a, is amended to read:4.12    Subd. 1a. Revision of state statewide multimodal transportation plan.(a) The 4.13commissioner shall revise the state statewide multimodal transportation plan by January 1, 4.141996, January 1, 2000, and, if the requirements of clauses (1) and (2) have been met in the 4.15previous revision2016, and by January 1 of every third even-numbered yearsix years 4.16thereafter. Before final adoption of a revised plan, the commissioner shall hold a hearing 4.17to receive public comment on the preliminary draft of the revised plan. 4.18The (b) Each revised state statewide multimodal transportation plan must:4.19(1) incorporate the goals of the state transportation system in section 
         174.01; and4.20(2) establish objectives, policies, and strategies for achieving those goals.; and4.21(3) identify performance targets for measuring progress and achievement of 4.22transportation system goals, objectives, or policies.4.23EFFECTIVE DATE.This section is effective the day following final enactment.4.24    Sec. 8. Minnesota Statutes 2008, section 174.03, is amended by adding a subdivision 4.25to read:4.26    Subd. 1c.Statewide highway 20-year capital investment plan.By July 2012 and 4.27in conjunction with each future revision of the statewide multimodal transportation plan, 4.28the commissioner shall prepare a 20-year statewide highway capital investment plan that:4.29(1) incorporates performance measures and targets for assessing progress and 4.30achievement of the state's transportation goals, objectives, and policies identified in this 4.31chapter for the state trunk highway system, and those goals, objectives, and policies 4.32established in the statewide multimodal transportation plan. Performance targets must be 4.33based on objectively verifiable measures, and address, at a minimum, preservation and 5.1maintenance of the structural condition of state highway bridges and pavements, safety, 5.2and mobility;5.3(2) summarizes trends and impacts for each performance target over the past five 5.4years;5.5(3) summarizes the amount and analyzes the impact of the department's capital 5.6investments and priorities over the past five years on each performance target, including a 5.7comparison of prior plan projected costs with actual costs;5.8(4) identifies the investments required to meet the established performance targets 5.9over the next 20-year period;5.10(5) projects available state and federal funding over the 20-year period;5.11(6) identifies strategies to ensure the most efficient use of existing transportation 5.12infrastructure, and to maximize the performance benefits of projected available funding;5.13(7) establishes investment priorities for projected funding, including a schedule of 5.14major projects or improvement programs for the 20-year period together with projected 5.15costs and impact on performance targets; and5.16(8) identifies those performance targets identified under clause (1) not expected to 5.17meet the target outcome over the 20-year period together with alternative strategies that 5.18could be implemented to meet the targets.5.19EFFECTIVE DATE.This section is effective the day following final enactment.5.20    Sec. 9. Minnesota Statutes 2008, section 174.03, subdivision 4, is amended to read:5.21    Subd. 4. Other duties. The commissioner shall:5.22(1) construct and maintain transportation facilities as authorized by law;5.23(2) cooperate with, and may provide technical and financial assistance to, the 5.24Metropolitan Council and regional development commissions in the regional transportation 5.25planning process, in accordance with mutually acceptable terms and conditions;5.26(3) cooperate with, and may provide planning and technical assistance upon the 5.27request of, any political subdivision or other governmental agency in accordance with 5.28mutually accepted terms and conditions, except as otherwise restricted by law; and5.29(4) develop, revise, and monitor a statewide rail transportation plan as part of the 5.30statewide transportation planning process, including a study and evaluation of alternative 5.31methods for insuring adequate and economical transportation of agricultural commodities, 5.32supplies, and other goods to and from rural areas of the state. The plan shall include an 5.33analysis of rail lines in the state for the purpose of determining (i) eligibility of rail lines 5.34for assistance under federal and state rail assistance programs, (ii) eligibility of rail lines 6.1for inclusion in the state rail bank, and (iii) the actions required by the state to insure the 6.2continuation of rail service that meets essential state needs and objectives.; and6.3(5) appoint an employee to serve as controller to establish and maintain a system of 6.4internal controls consistent with section 16A.057, subdivision 1, to ensure the accuracy, 6.5thoroughness, and reliability of financial, asset management, and performance information 6.6generated by the department and reported to the legislature. The controller shall report 6.7annually, at a minimum, to the chairs and ranking minority members of the senate and 6.8house of representatives committees with jurisdiction over transportation policy and 6.9finance concerning agency productivity, progress toward performance-based agency 6.10budgeting, and agency efficiency. The report on agency efficiency must include cost 6.11estimates of projects, with engineering, right-of-way acquisition, and construction costs 6.12compared to actual costs; and district-to-district comparisons of estimated and actual costs 6.13and results achieved. Effectiveness of the internal controls must be tested annually by 6.14auditors using generally accepted auditing standards.6.15    Sec. 10. REPORT ON DEPARTMENT OF TRANSPORTATION 6.16MANAGEMENT CHANGES.6.17(a) By February 1, 2011, the commissioner of transportation shall submit a report 6.18electronically to the members of the senate and house of representatives committees 6.19with jurisdiction over transportation policy and finance concerning recent changes in the 6.20department's organizational structure, internal procedures and practices, and anticipated 6.21budget. The report must include, but is not limited to:6.22(1) a summary and review of the department organizational structure for bridge 6.23management, maintenance, and inspections, including a brief explanation of any relevant 6.24structural or organizational changes made since August 1, 2007;6.25(2) an analysis of the division of bridge-related duties and decision-making 6.26responsibilities between districts and central administration;6.27(3) a summary of current agency procedures and processes, and any changes made 6.28since August 1, 2007, related to:6.29(i) initiation of bridge re-rating and use of bridge inspection findings in the re-rating 6.30process;6.31(ii) implementation of agencywide standards for documenting bridge inspection 6.32findings and decision making for postinspection bridge maintenance; and6.33(iii) other changes designed to ensure or enhance the safety of Minnesota's 6.34transportation infrastructure; and7.1(4) a budget analysis of anticipated funding and funding allocations for pavement 7.2preservation and highway maintenance, safety projects, mobility enhancement projects, 7.3and highway and bridge construction, for fiscal years 2012 through 2018, including a 7.4discussion of any anticipated budgetary challenges or risks.7.5(b) In addition to an electronic report, the commissioner shall prepare a summary of 7.6findings from the report for distribution and oral testimony to the chairs of the senate and 7.7house of representatives committees with jurisdiction over transportation finance, who 7.8shall make every reasonable effort to arrange testimony from the department during the 7.92011 legislative session.