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SF 3279

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/04/2025 09:41 a.m.

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction
PDF
Posted on 04/02/2025
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A bill for an act
relating to transportation; modifying requirements related to construction impacts
on businesses; establishing a local business construction impacts assistance
program; amending Minnesota Statutes 2024, section 160.165; proposing coding
for new law in Minnesota Statutes, chapter 160.

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

Section 1.

Minnesota Statutes 2024, section 160.165, is amended to read:


160.165 MITIGATING TRANSPORTATION PROJECT IMPACTS ON
BUSINESS.

Subdivision 1.

Definitions.

new text begin (a) new text end For the purposes of this section, the following terms have
the meanings givendeleted text begin :deleted text end new text begin .
new text end

new text begin (b) "Business impairment" has the meaning given in section 160.167, subdivision 1.
new text end

deleted text begin (1)deleted text end new text begin (c)new text end "Project" means construction work to maintain, construct, reconstruct, or improve
a street or highway or for a rail transit projectdeleted text begin ;deleted text end new text begin .
new text end

deleted text begin (2)deleted text end new text begin (d)new text end "Substantial business impacts" meansnew text begin businessnew text end impairment deleted text begin of road access, parking,
or visibility for one or more business establishments
deleted text end as a result of a project, for a deleted text begin minimumdeleted text end
period ofnew text begin at leastnew text end one monthdeleted text begin ; anddeleted text end new text begin .
new text end

deleted text begin (3)deleted text end new text begin (e)new text end "Transportation authority" means the commissioner, as to trunk highways; the
county board, as to county state-aid highways and county highways; the town board, as to
town roads; statutory or home rule charter cities, as to city streets; the Metropolitan Council,
for rail transit projects located entirely within the metropolitan area as defined in section
473.121, subdivision 2; and the commissioner, for all other rail transit projects.

Subd. 2.

Business liaison.

(a) Before beginning construction work on a project, a
transportation authority deleted text begin shalldeleted text end new text begin mustnew text end identify whether the project is anticipated to include
substantial business impacts. For such projects, the transportation authority deleted text begin shalldeleted text end new text begin mustnew text end
designate an individual to serve as business liaison between the transportation authority and
affected businesses.

(b) The business liaison deleted text begin shalldeleted text end new text begin mustnew text end consult with affected businesses before and during
construction to investigatenew text begin and recommendnew text end means of mitigating project impacts to businesses.
The mitigation considered must include signage. The business liaison deleted text begin shalldeleted text end new text begin mustnew text end provide
information to the identified businesses before and during construction, concerning project
duration and timetables, lane and road closures, detours, access impacts, customer parking
impacts, visibility, noise, dust, vibration, and public participation opportunities.

new text begin Subd. 4. new text end

new text begin Construction communication plan. new text end

new text begin (a) A transportation authority must
implement a construction communication plan for each project in which a business liaison
is required under subdivision 2. The transportation authority must develop the plan in
consultation with the business liaison during project development.
new text end

new text begin (b) At a minimum, the communication plan must include:
new text end

new text begin (1) identification of methods to distribute project information;
new text end

new text begin (2) procedures to distribute construction-related notices to affected businesses, tenants,
and other property owners;
new text end

new text begin (3) development of information on the project, including but not limited to the information
specified under subdivision 2, paragraph (b), and, as appropriate, potential financial assistance
under the local business construction impacts assistance program under section 160.167;
and
new text end

new text begin (4) a schedule and milestones for issuance of project updates, including but not limited
to immediately prior to commencement of construction work and following any change in
the scheduled date of substantial completion of the project.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to projects in which construction first commences on or after November 1, 2025.
new text end

Sec. 2.

new text begin [160.167] LOCAL BUSINESS CONSTRUCTION IMPACTS ASSISTANCE
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Business entity" includes but is not limited to an individual, partnership, corporation,
joint venture, association, or cooperative.
new text end

new text begin (c) "Business impairment" means impairment to a business establishment or nonprofit
organization of at least one of the following:
new text end

new text begin (1) access to a retail location from:
new text end

new text begin (i) a project that is on a road that abuts the location and includes partial or full closure
of the road within 1,000 feet of the location; or
new text end

new text begin (ii) more than one simultaneous project on a road that abuts the location in which a
portion of each project (A) is within two miles of the location, and (B) includes partial or
full closure of the road; or
new text end

new text begin (2) visibility of the primary identifying signage or entrance.
new text end

new text begin (d) "Covered project" means a project to maintain, construct, reconstruct, or improve a
trunk highway within a statutory or home rule charter city, a county state-aid highway, a
municipal state-aid street, or a combination.
new text end

new text begin (e) "Extensive business impacts" means business impairment as a result of a covered
project for a period of at least 60 days.
new text end

new text begin (f) "Program" means the local business construction impacts assistance program
established in this section.
new text end

new text begin Subd. 2. new text end

new text begin Program established. new text end

new text begin The commissioner must establish a program for financial
assistance to eligible entities adversely impacted by street and highway construction activity
on covered projects.
new text end

new text begin Subd. 3. new text end

new text begin Administration. new text end

new text begin The commissioner must establish program requirements,
including application procedures that minimize applicant burdens, eligibility criteria subject
to the requirements under subdivision 4, and procedures for distribution of financial
assistance. The commissioner must implement the program to provide financial assistance
payments in a timely manner that are, to the extent practicable, before or during the time
period of the extensive business impacts.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility. new text end

new text begin An eligible recipient of financial assistance under the program is a
business entity organized for profit or a nonprofit organization that:
new text end

new text begin (1) in the preceding fiscal year, received at least 80 percent of its annual gross revenue
from sales or services at retail locations;
new text end

new text begin (2) has no more than two retail locations;
new text end

new text begin (3) has experienced or is anticipated to experience extensive business impacts; and
new text end

new text begin (4) is headquartered and located in Minnesota.
new text end

new text begin Subd. 5. new text end

new text begin Financial assistance; program allocation. new text end

new text begin (a) A road authority that performs
a covered project with extensive business impacts to one or more anticipated eligible entities
must allocate a portion of project funds for financial assistance to be provided under the
program. As applicable, a road authority must provide project and allocation information
to the commissioner in the manner required by the commissioner.
new text end

new text begin (b) For each project, the allocation equals one percent of the total project cost estimate
as calculated absent the requirements under this section.
new text end

new text begin (c) For each project, the contingent allocation equals one percent of the total project cost
estimate as calculated absent the requirements under this section.
new text end

new text begin Subd. 6. new text end

new text begin Financial assistance; distribution and payment. new text end

new text begin (a) Following application
and review of eligibility and business impacts, the commissioner must identify award
recipients. From the allocation specified under subdivision 5, paragraph (b), or paragraph
(c) as provided under subdivision 7, the commissioner must determine a distribution amount
to each award recipient and make financial assistance payments accordingly.
new text end

new text begin (b) The distribution amount must:
new text end

new text begin (1) be allocated equally among all recipients; and
new text end

new text begin (2) not exceed $30,000 for each recipient.
new text end

new text begin (c) Notwithstanding any law to the contrary, funds available for the covered project are
available for the commissioner to make financial assistance payments to award recipients
under the program.
new text end

new text begin Subd. 7. new text end

new text begin Financial assistance; supplemental distribution. new text end

new text begin (a) Before commencing
construction work on a covered project, the road authority must identify a milestone date
at which point all extensive business impacts are scheduled to be substantially concluded
for the project. The road authority may establish multiple milestone dates for different
projects or project segments as appropriate.
new text end

new text begin (b) If extensive business impacts are not substantially concluded within 60 days after a
milestone date under paragraph (a), the commissioner must perform a supplemental
distribution of financial assistance as provided under subdivision 6 using the contingent
allocation specified under subdivision 5, paragraph (c).
new text end

new text begin Subd. 8. new text end

new text begin Application. new text end

new text begin The requirements under this section apply to a covered project
in which construction first commences on or after October 1, 2026.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end