SF 2162

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 11/05/2025 02:00 p.m.

A bill for an act
relating to transportation; modifying state-aid engineering and design standards
variances; authorizing local road authorities to adopt design elements without
state-aid engineering and design variances; modifying state-aid variance procedures;
establishing advisory committee on design variances; requiring legislative
notification for denied variances; requiring a report; amending Minnesota Statutes
2024, sections 162.02, subdivision 3a, by adding subdivisions; 162.09, subdivision
3a, by adding subdivisions; 162.155; proposing coding for new law in Minnesota
Statutes, chapter 162; repealing Minnesota Rules, parts 8820.3300, subparts 1, 1a,
3, 4; 8820.3400.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 162.02, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Local design control. new text end

new text begin (a) A political subdivision may use a roadway design
that is different than the design rules adopted and promulgated by the commissioner if the
political subdivision adopts, by resolution, a qualifying alternative roadway design standard.
A political subdivision that adopts a qualifying alternative design standard is solely
responsible for ensuring that the design or designs meet the adopted standard. The
commissioner must forgo review of geometric designs, except for the review of design
standards for the vertical clearances for underpasses in Minnesota Rules, part 8820.2500,
for county state-aid roadway projects in a city or county adopting alternative design standards
for that project. If a city has adopted an alternative design standard for a past roadway design
project in that city, a county may elect to use the same alternative design standard for the
geometric design of a county state-aid project within that city. For purposes of this
subdivision, "qualifying alternative roadway design standard" includes any of the following
publications:
new text end

new text begin (1) the latest edition of the Department of Transportation Facility Design Guide or
successor document;
new text end

new text begin (2) the American Association of State Highway and Transportation Officials' (AASHTO)
A Policy on Geometric Design Highways and Streets or other AASHTO design guides
formally recognized by the Federal Highway Administration;
new text end

new text begin (3) the Institute of Transportation Engineers' Designing Walkable Urban Thoroughfares:
A Context Sensitive Approach and Implementing Context Sensitive Design Handbook;
new text end

new text begin (4) the National Association of City Transportation Officials' (NACTO) Urban Street
Design Guide and other NACTO design guides formally recognized by the Federal Highway
Administration;
new text end

new text begin (5) the Global Designing Cities Initiative's (GDCI) Global Street Design Guide and
Designing Streets for Kids supplement; or
new text end

new text begin (6) any other design guide recognized or approved by the Federal Highway
Administration in United States Code, title 23, section 109(o)(B).
new text end

new text begin (b) This subdivision does not apply to a natural preservation route established under
section 162.021.
new text end

new text begin (c) The commissioner, Metropolitan Council, or any other metropolitan planning
organization in this state must not require a political subdivision that adopts a qualifying
alternative design standard to meet minimum state-aid geometric design standards for
state-funded or federally funded county state-aid roadway projects.
new text end

new text begin (d) The commissioner may require a resolution by a political subdivision adopting a
qualifying alternative roadway design under this section that indemnifies, saves, and holds
harmless the state and its agents of and from claims, demands, actions, or causes of action
arising out of by reason adopting the alternative design standard. The political subdivision
must further agree to defend at its sole cost and expense any action or proceeding begun
for asserting any claim of whatever character against the state arising as a result of adopting
the qualifying alternative roadway design.
new text end

new text begin (e) A political subdivision adopting a qualifying alternative design standard is exempt
from municipal liability claims as provided under section 466.03, subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025, for county state-aid roadway
projects on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2024, section 162.02, subdivision 3a, is amended to read:

Subd. 3a.

Variances from rules and engineering standards.

(a) The commissioner
may grant variances from the rules and from the engineering standards developed pursuant
to section 162.021 or 162.07, subdivision 2. A political subdivision in which a county
state-aid highway is located or is proposed to be located may submit a written request to
the commissioner for a variance for that highway. The commissioner deleted text begin shall deleted text end new text begin must new text end comply
with section 174.75, subdivision 5, in evaluating a variance request related to a complete
streets project. new text begin A political subdivision must not be required to seek a variance from county
state-aid design standards if the proposed deviation from rules is designed in accordance
with a qualifying alternative roadway design standard under subdivision 1a.
new text end

(b) The commissioner may grant or deny the variance within 30 days of receiving the
variance request. If the variance is denied, the political subdivision may request, within 30
days of receiving notice of denial, and deleted text begin shall deleted text end new text begin must new text end be granted a contested case hearing. new text begin The
commissioner must use the criteria set forth in subdivision 3c to evaluate the variance
request. The commissioner must give special consideration to proposed modifications for
safety considerations if the proposed design is intended to increase the safety of nonmotorized
transportation to and from a school.
new text end

new text begin (c) If the commissioner denies a variance, the commissioner must notify the chairs and
ranking minority members of the legislative committees with jurisdiction over transportation
and provide justification for denying the variance within 30 days of notifying the political
subdivision of the denial. The justification must include the commissioner's reasoning for
the denial, the recommendation of the advisory committee on variances, and the reasoning
used by the committee to approve or deny the variance.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end For purposes of this subdivision, "political subdivision" includes (1) an agency
of a political subdivision which has jurisdiction over parks, and (2) a regional park authority.

new text begin (e) The commissioner must not require a political subdivision to seek a variance from
design rules under this section for:
new text end

new text begin (1) narrowing lanes from 11 feet to ten feet for roadways in an urban or suburban context,
except where specifically prohibited in adopted state-aid rules;
new text end

new text begin (2) designs allowed in the current Department of Transportation Facility Design Guide
or successor document for roadways of similar context;
new text end

new text begin (3) designs allowed by current Department of Transportation trunk highway standards
for roadways of similar context; or
new text end

new text begin (4) any design element in a project funded by the safe routes to school program, except
where specifically prohibited in adopted state-aid rules or the current Department of
Transportation Facility Design Guide.
new text end

new text begin (f) Paragraph (e) does not apply to a natural preservation route established under section
162.021.
new text end

new text begin (g) The commissioner may require a resolution by the recipient of a variance that
indemnifies, saves, and holds harmless the state and its agents and employees of and from
claims, demands, actions, or causes of action arising out of or by reason of granting the
variance. The recipient of the variance must further agree to defend at its sole cost and
expense any action or proceeding begun for asserting any claim of whatever character arising
as a result of granting the variance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025, for county state-aid roadway
projects on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2024, section 162.02, is amended by adding a subdivision to
read:

new text begin Subd. 3c. new text end

new text begin Variance format. new text end

new text begin To submit a formal request for a variance from county
state-aid design rules, a political subdivision must submit a written request to the
commissioner. The written request must be in the form of an adopted resolution. The request
must:
new text end

new text begin (1) identify the project by location and termini;
new text end

new text begin (2) cite the specific part or standard for which the variance is requested from county
state-aid design rules;
new text end

new text begin (3) describe the proposed modification;
new text end

new text begin (4) describe the economic, social, safety, and environmental impacts that may result
from the requested variance;
new text end

new text begin (5) identify the project's effectiveness in eliminating an existing and projected deficiency
in the transportation system, including identifying and citing whether the existing roadway's
design meets:
new text end

new text begin (i) current Department of Transportation Facility Design Guide or successor material
criteria for a similar road context; or
new text end

new text begin (ii) a recognized or approved Federal Highway Administration design guide standard
for a similar road context;
new text end

new text begin (6) identify effects on adjacent lands;
new text end

new text begin (7) identify the number of persons affected; and
new text end

new text begin (8) identify safety considerations as they apply to:
new text end

new text begin (i) pedestrians;
new text end

new text begin (ii) bicyclists;
new text end

new text begin (iii) vulnerable road users;
new text end

new text begin (iv) the motoring public; and
new text end

new text begin (v) fire, police, and emergency service providers.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025, for county state-aid roadway
projects on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2024, section 162.09, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Local design control. new text end

new text begin (a) A political subdivision may use a roadway design
that is different than the design rules adopted and promulgated by the commissioner if the
political subdivision adopts, by resolution, a qualifying alternative roadway design standard.
A political subdivision that adopts a qualifying alternative design standard is solely
responsible for ensuring that the design or designs meet the adopted standard. The
commissioner must forgo review of geometric designs, except for the review of design
standards for the vertical clearances for underpasses in Minnesota Rules, part 8820.2500,
for municipal state-aid roadway projects in a city or county adopting alternative design
standards for that project. If the county where a municipal state-aid project is located has
adopted an alternative design standard for a past roadway design project in that city, a city
may elect to use the same alternative design standard for the geometric design of a municipal
state-aid project. For purposes of this subdivision, "qualifying alternative roadway design
standard" includes any of the following publications:
new text end

new text begin (1) the latest edition of the Department of Transportation Facility Design Guide or
successor document;
new text end

new text begin (2) the American Association of State Highway and Transportation Officials' (AASHTO)
A Policy on Geometric Design Highways and Streets or other AASHTO design guides
formally recognized by the Federal Highway Administration;
new text end

new text begin (3) the Institute of Transportation Engineers' Designing Walkable Urban Thoroughfares:
A Context Sensitive Approach and Implementing Context Sensitive Design Handbook;
new text end

new text begin (4) the National Association of City Transportation Officials' (NACTO) Urban Street
Design Guide and other NACTO design guides formally recognized by the Federal Highway
Administration;
new text end

new text begin (5) the Global Designing Cities Initiative's (GDCI) Global Street Design Guide and
Designing Streets for Kids supplement; or
new text end

new text begin (6) any other design guide approved or recognized by the Federal Highway
Administration.
new text end

new text begin (b) The commissioner, Metropolitan Council, or any other metropolitan planning
organization in this state must not require a political subdivision that adopts a qualifying
alternative design standard to meet minimum state-aid geometric design standards for
state-funded or federally funded municipal state-aid roadway projects.
new text end

new text begin (c) The commissioner may require a resolution by a political subdivision adopting a
qualifying alternative roadway design under this section that indemnifies, saves, and holds
harmless the state and its agents of and from claims, demands, actions, or causes of action
arising out of by reason adopting the alternative design standard. The political subdivision
must further agree to defend at its sole cost and expense any action or proceeding begun
for asserting any claim of whatever character against the state arising as a result of adopting
the qualifying alternative roadway design.
new text end

new text begin (d) A political subdivision adopting a qualifying alternative design standard is exempt
from municipal liability claims as provided under section 466.03, subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025, for municipal state-aid
roadway projects on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2024, section 162.09, subdivision 3a, is amended to read:

Subd. 3a.

Variances from rules and engineering standards.

(a) The commissioner
may grant variances from the rules and from the engineering standards developed pursuant
to section 162.13, subdivision 2. A political subdivision in which a municipal state-aid street
is located or is proposed to be located may submit a written request to the commissioner
for a variance for that street. The commissioner deleted text begin shall deleted text end new text begin must new text end comply with section 174.75,
subdivision 5, in evaluating a variance request related to a complete streets project. new text begin A
political subdivision must not be required to seek a variance from municipal state-aid design
standards if the proposed deviation from rules is designed in accordance with a qualifying
alternative roadway design guide provided in subdivision 1a.
new text end

(b) The commissioner may grant or deny the variance within 30 days of receiving the
variance request. If the variance is denied, the political subdivision may request, within 30
days of receiving notice of denial, and deleted text begin shall deleted text end new text begin must new text end be granted a contested case hearing. new text begin The
commissioner must use the criteria set forth in subdivision 3b to evaluate the variance
request. The commissioner must give special consideration to proposed modifications for
safety considerations if the proposed design is intended to increase the safety of nonmotorized
transportation to and from a school.
new text end

new text begin (c) If the commissioner denies a variance, the commissioner must notify the chairs and
ranking minority members of the legislative committees with jurisdiction over transportation
and provide justification for denying the variance within 30 days of notifying the political
subdivision of the denial. The justification must include the commissioner's reasoning for
the denial, the recommendation of the advisory committee on variances, and the reasoning
used by the committee to approve or deny the variance.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end For purposes of this subdivision, "political subdivision" includes (1) an agency
of a political subdivision which has jurisdiction over parks, and (2) a regional park authority.

new text begin (e) The commissioner must not require a political subdivision to seek a variance under
this section from the design rules for:
new text end

new text begin (1) narrowing lanes from 11 feet to ten feet for roadways in an urban or suburban context,
except where specifically prohibited in adopted state-aid rules;
new text end

new text begin (2) designs allowed in the current Department of Transportation Facility Design Guide
or successor document for roadways of similar context;
new text end

new text begin (3) designs allowed by current Department of Transportation trunk highway standards
for roadways of similar context; or
new text end

new text begin (4) any design element in a project funded by the safe routes to school program, except
where specifically prohibited in adopted state-aid rules or the current Department of
Transportation Facility Design Guide.
new text end

new text begin (f) The commissioner may require a resolution by the recipient of a variance that
indemnifies, saves, and holds harmless the state and its agents and employees of and from
claims, demands, actions, or causes of action arising out of or by reason of granting the
variance. The recipient of the variance must further agree to defend at its sole cost and
expense any action or proceeding begun for asserting any claim of whatever character arising
as a result of granting the variance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025, for municipal state-aid
roadway projects on or after that date.
new text end

Sec. 6.

Minnesota Statutes 2024, section 162.09, is amended by adding a subdivision to
read:

new text begin Subd. 3b. new text end

new text begin Variance format. new text end

new text begin To submit a formal request for a variance from municipal
state-aid design rules, a political subdivision must submit a written request to the
commissioner. The written request must be in the form of an adopted resolution. The request
must:
new text end

new text begin (1) identify the project by location and termini;
new text end

new text begin (2) cite the specific part or standard for which the variance is requested from municipal
state-aid design rules;
new text end

new text begin (3) describe the proposed modification;
new text end

new text begin (4) describe the economic, social, safety, and environmental impacts that may result
from the requested variance;
new text end

new text begin (5) identify the effectiveness of the project in eliminating an existing and projected
deficiency in the transportation system, including identifying and citing whether the existing
roadway's design meets:
new text end

new text begin (i) current Department of Transportation Facility Design Guide or successor material
criteria for a similar road context; or
new text end

new text begin (ii) a recognized or approved Federal Highway Administration design guide standard
for a similar road context;
new text end

new text begin (6) identify effects on adjacent lands;
new text end

new text begin (7) identify the number of persons affected; and
new text end

new text begin (8) identify safety considerations as they apply to:
new text end

new text begin (i) pedestrians;
new text end

new text begin (ii) bicyclists;
new text end

new text begin (iii) vulnerable road users;
new text end

new text begin (iv) the motoring public; and
new text end

new text begin (v) fire, police, and emergency service providers.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025, for municipal state-aid
roadway projects on or after that date.
new text end

Sec. 7.

new text begin [162.095] ADVISORY COMMITTEE ON DESIGN VARIANCES.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin An advisory committee on design variances is established
to investigate and determine a recommendation for each variance submitted under sections
162.02, subdivision 3a, and 162.09, subdivision 3a.
new text end

new text begin Subd. 2. new text end

new text begin Membership; legislators. new text end

new text begin (a) The advisory committee on design variances
called by the commissioner under subdivision 3 must consist of the following members:
new text end

new text begin (1) two members of the senate, one appointed by the senate majority leader and one
appointed by the senate minority leader;
new text end

new text begin (2) two members of the house of representatives, one appointed by the speaker of the
house and one appointed by the house minority leader;
new text end

new text begin (3) not more than two county highway engineers, only one of whom may be from a
county containing a city of the first class;
new text end

new text begin (4) not more than two city engineers, only one of whom may be from a city of the first
class;
new text end

new text begin (5) not more than two county officials, only one of whom may be from a county
containing a city of the first class;
new text end

new text begin (6) not more than two officials of an urban municipality, only one of whom may be from
a city of the first class;
new text end

new text begin (7) not more than two representatives of the Office of Transit and Active Transportation
in the Department of Transportation, one of whom must be an engineer; and
new text end

new text begin (8) one representative from the State Aid for Local Transportation Office in the
Department of Transportation with experience in project design and the safety factors
specified in sections 162.02, subdivision 3c, and 162.09, subdivision 3b.
new text end

new text begin (b) The committee must have at least six elected officials, including the four legislators
in paragraph (a), clauses (1) and (2). No legislator may serve on the advisory committee on
design variances if the proposed project is located within the legislator's district. No elected
or appointed official that represents a political subdivision may serve on the committee.
new text end

new text begin (c) The committee must have at least one member but not more than 12 members from
a metropolitan area as defined in section 473.121, subdivision 2, as well as cities with a
population over 50,000 according to the most recent federal census.
new text end

new text begin Subd. 3. new text end

new text begin Operating procedure; open meeting law. new text end

new text begin (a) The advisory committee must
meet at the call of the commissioner, at which time the committee must be instructed as to
the committee's responsibilities by a designee of the commissioner. The members of the
advisory committee must elect a chair from the members of the group at the initial meeting
and may set bylaws and procedures to investigate the requested variance.
new text end

new text begin (b) An advisory committee organized under this section is subject to the Minnesota Open
Meeting Law under chapter 13D.
new text end

new text begin Subd. 4. new text end

new text begin Factors considered. new text end

new text begin The advisory committee must make a recommendation
for a variance based on criteria set forth in sections 162.02, subdivision 3c, and 162.09,
subdivision 3b. The advisory committee must give special consideration to safety if the
proposed project design is intended to increase the safety of nonmotorized transportation
to and from a school. The advisory committee may not recommend to deny a variance for
a project seeking to narrow lanes from 11 feet to ten feet for roadways in an urban or
suburban context, except where specifically prohibited in adopted state-aid rules.
new text end

new text begin Subd. 5. new text end

new text begin Recommendation. new text end

new text begin After considering all data pertinent to the requested variance,
the advisory committee must recommend to the commissioner approval or denial of the
request. If the committee denies the variance, the committee must provide specific reasoning
for the denial and identify the design standard used to evaluate the denial.
new text end

new text begin Subd. 6. new text end

new text begin Administration. new text end

new text begin Upon request of the advisory committee, the commissioner
must provide meeting space, technical support, and administrative services for the group.
new text end

new text begin Subd. 7. new text end

new text begin Legislative report. new text end

new text begin By January 15 of each even-numbered year, the
commissioner of transportation must submit a report to the chairs and ranking minority
members of the legislative committees with jurisdiction over transportation policy and
finance. The report must summarize the activities of any advisory committee on variances
from the prior two years, identify the committees' analysis and findings for each variance
approved or denied, identify whether the commissioner and the advisory committee came
to a different decision on a requested variance and identify the reasons for the difference,
and provide recommendations on improvements to the advisory committee.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025, for state-aid design variances
sought on or after that date.
new text end

Sec. 8.

Minnesota Statutes 2024, section 162.155, is amended to read:

162.155 RULEMAKING.

deleted text begin (a) The commissioner shall adopt rules setting forth the criteria to be considered by the
commissioner in evaluating requests for variances under sections 162.02, subdivision 3a
and 162.09, subdivision 3a. The rules must include, but are not limited to, economic,
engineering and safety guidelines.
deleted text end

deleted text begin (b) deleted text end new text begin (a) new text end The commissioner shall adopt rules establishing the engineering standards for
cost estimation under sections 162.07, subdivision 2, and 162.13, subdivision 2.

deleted text begin (c) deleted text end new text begin (b) new text end The rules adopted by the commissioner under this section, and sections 162.02;
162.07, subdivision 2; 162.09; and 162.13, subdivision 2, are exempt from the rulemaking
provisions of chapter 14. The rules are subject to section 14.386, except that, notwithstanding
paragraph (b) of that section, the rules continue in effect until repealed or superseded by
other law or rule.

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Rules, parts 8820.3300, subparts 1, 1a, 3, and 4; and 8820.3400, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Rule: S2162-1

8820.3300 VARIANCE.

Subpart 1.

Written requests.

A formal request by a political subdivision for a variance from this chapter must:

A.

be submitted to the commissioner in writing in the form of a resolution;

B.

identify the project by location and termini; and

C.

cite the specific part or standard for which the variance is requested and describe the modification proposed.

Subp. 1a.

Additional information.

Additional information needed:

A.

index map;

B.

typical section:

(1)

inplace section;

(2)

proposed section;

C.

reasons for the request;

D.

the economic, social, safety, and environmental impacts which may result from the requested variance;

E.

effectiveness of the project in eliminating an existing and projected deficiency in the transportation system;

F.

effect on adjacent lands;

G.

number of persons affected; and

H.

safety considerations as they apply to:

(1)

pedestrians;

(2)

bicyclists;

(3)

motoring public; and

(4)

fire, police, and emergency units.

Subp. 3.

Decision.

The commissioner shall base the decision on the criteria in part 8820.3400, subpart 3 and shall notify the political subdivision in writing of the decision. The commissioner may require a resolution by the recipient of the variance that indemnifies, saves, and holds harmless the state and its agents and employees of and from claims, demands, actions, or causes of action arising out of or by reason of the granting of the variance. The recipient of the variance shall further agree to defend at its sole cost and expense any action or proceeding begun for asserting any claim of whatever character arising as a result of the granting of the variance.

Subp. 4.

Contested case hearing.

Any variance objected to in writing or denied by the commissioner is subject to a contested case hearing as required by law.

8820.3400 ADVISORY COMMITTEE ON VARIANCES.

Subpart 1.

Appointment.

The commissioner may appoint a committee to serve as required to investigate and determine a recommendation for each variance. No elected or appointed official that represents a political subdivision requesting a variance may serve on the committee.

Subp. 2.

Membership.

The committee shall consist of any five of the following persons: not more than two county highway engineers, only one of whom may be from a county containing a city of the first class; not more than two city engineers, only one of whom may be from a city of the first class; not more than two county officials, only one of whom may be from a county containing a city of the first class; and not more than two officials of an urban municipality, only one of whom may be from a city of the first class. The committee must have at least two elected officials as members. The committee shall have at least one member but not more than four members from a metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2, as well as cities with a population of over 50,000 according to the most recent census.

Subp. 3.

Operating procedure; factors considered.

The committee shall meet on call from the commissioner at which time they must be instructed as to their responsibilities by a designee of the commissioner, shall elect a chairperson, and shall establish their own procedure to investigate the requested variance.

The committee shall consider the:

A.

economic, social, safety, and environmental impacts which may result from the requested variance;

B.

effectiveness of the project in eliminating an existing and projected deficiency in the transportation system;

C.

effect on adjacent lands;

D.

number of persons affected;

E.

effect on future maintenance;

F.

safety considerations as they apply to pedestrians, bicyclists, motoring public, and fire, police, and emergency units; and

G.

effect that the rule and standards may have in imposing an undue burden on a political subdivision.

Subp. 4.

Recommendation.

The committee after considering all data pertinent to the requested variance shall recommend to the commissioner approval or disapproval of the request.