1.1 	A bill for an act
1.2 	relating to capital investment; providing for local bridge replacement and 
1.3 	rehabilitation;amending Minnesota Statutes 2016, section 174.50, subdivisions 
1.4 	5, 6b, 6c, 7.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2016, section 174.50, subdivision 5, is amended to read:
1.7 		Subd. 5.Certification and disbursal for project of political subdivision. Before 
1.8 	disbursement of an appropriation made from the fund to the commissioner of transportation 
1.9 	for grants to subdivisions of the state, the commissioner shall certify that:
1.10 	(1) that the project for which the grant is made has been reviewed as provided in 
1.11 	subdivision 4;
1.12 	(2) that the project conforms to the program authorized by the appropriation law and 
1.13 	rules adopted by the Department of Transportation consistent therewith; and
1.14 	(3) that (2) the financing of any estimated cost of the project in excess of the amount of 
1.15 	the grant is assured by the appropriation of the proceeds of bonds or other funds of the 
1.16 	subdivision, or by a grant from an agency of the federal government, within the amount of 
1.17 	funds then appropriated to that agency and allocated by it to projects within the state, and 
1.18 	by an irrevocable undertaking, in a resolution of the governing body of the subdivision, to 
1.19 	use all funds so made available exclusively for the project, and to pay any additional amount 
1.20 	by which the cost exceeds the estimate through appropriation to the construction fund of 
1.21 	additional funds or the proceeds of additional bonds to be issued by the subdivision.

2.1 	Sec. 2. Minnesota Statutes 2016, section 174.50, subdivision 6b, is amended to read:
2.2 		Subd. 6b.Bridge costs in smaller cities. (a) The commissioner may make grants from 
2.3 	the state transportation fund to a home rule or statutory city with a population of 5,000 or 
2.4 	less for design, engineering, and construction of bridges on city streets.
2.5 	(b) Grants under this subdivision are subject to the procedures and criteria established 
2.6 	under subdivisions 5, 6, and 7.
2.7 	(c) (b) Grants may be used for:
2.8 	(1) 100 percent of the design and engineering costs that are in excess of $10,000;
2.9 	(2) 100 percent of the bridge approach work costs that are in excess of $10,000; and
2.10 	(3) 100 percent of the bridge construction work costs.

2.11 	Sec. 3. Minnesota Statutes 2016, section 174.50, subdivision 6c, is amended to read:
2.12 		Subd. 6c.Fracture-critical bridges. (a) The commissioner may make a grant to any 
2.13 	political subdivision for replacement or rehabilitation of a fracture-critical bridge. To be 
2.14 	eligible for a grant under this subdivision, the project must produce a bridge structure:
2.15 	(1) that is no longer classified as fracture critical, by having alternate load paths; and
2.16 	(2) whose failure of a main component will not result in the collapse of the bridge.
2.17 	(b) A grant under this subdivision is subject to the procedures and criteria established 
2.18 	under subdivisions 5 and 6.

2.19 	Sec. 4. Minnesota Statutes 2016, section 174.50, subdivision 7, is amended to read:
2.20 		Subd. 7.Bridge grant program; rulemaking. (a) The commissioner of transportation 
2.21 	shall develop rules, procedures for application for grants, conditions of grant administration, 
2.22 	standards, and criteria as provided under subdivision 6, including bridge specifications, in 
2.23 	cooperation with road authorities of political subdivisions, for use in the administration of 
2.24 	funds appropriated to the commissioner and for the administration of grants to subdivisions. 
2.25 	Grants under this section are subject to the procedures and criteria established in this section 
2.26 	and in subdivisions 5 and 6.
2.27 	(b) The maximum use of standardized bridges is encouraged. Regardless of the size of 
2.28 	the existing bridge, a bridge or replacement bridge is eligible for assistance from the state 
2.29 	transportation fund if a hydrological survey indicates that the bridge or replacement bridge 
2.30 	must be ten feet or more in length.
3.1 	(c) As part of the standards or rules, the commissioner shall, in consultation with local 
3.2 	road authorities, establish a minimum distance between any two bridges that cross over the 
3.3 	same river, stream, or waterway, so that only one of the bridges is eligible for a grant under 
3.4 	this section. As appropriate, the commissioner may establish exceptions from the minimum 
3.5 	distance requirement or procedures for obtaining a variance.
3.6 	(d) Political subdivisions may use grants made under this section to construct or 
3.7 	reconstruct bridges, including but not limited to:
3.8 	(1) matching federal aid grants to construct or reconstruct key bridges;
3.9 	(2) paying the costs to abandon an existing bridge that is deficient and in need of 
3.10 	replacement but where no replacement will be made; and
3.11 	(3) paying the costs to construct a road or street to facilitate the abandonment of an 
3.12 	existing bridge if the commissioner determines that the bridge is deficient, and that 
3.13 	construction of the road or street is more economical than replacement of the existing bridge.
3.14 	(e) Funds appropriated to the commissioner from the Minnesota state transportation 
3.15 	fund shall be segregated from the highway tax user distribution fund and other funds created 
3.16 	by article XIV of the Minnesota Constitution.
3.17 	(f) The maximum grant amount for a local bridge replacement or rehabilitation project 
3.18 	under this section is $7,000,000.

3.19 	EFFECTIVE DATE. This section is effective the day following final enactment.