HF 1590

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
proposing an amendment to the Minnesota Constitution,
article XI, section 7; article XIV, section 10, by
adding a section; imposing certain requirements on
future bonding bills, allocating revenue from motor
vehicle sales tax, and increasing and modifying use of
motor fuel tax; imposing requirements on expenditure
of certain federal funds; authorizing issuance of
$750,000,000 in state trunk highway bonds; dedicating
bond proceeds and state share of motor fuel tax
increase to designated major transportation projects;
creating right-of-way advance acquisition loan account
in transportation revolving loan fund; requiring pilot
projects, studies, and reports on municipal consent,
wetland mitigation, environmental involvement,
environmental permitting, performance-based highway
contract specification, commodity corridors, transit
efficiencies, and highway jurisdiction; authorizing
state agencies to be designated as charter agencies;
appropriating money; amending Minnesota Statutes 2004,
sections 161.04, by adding a subdivision; 161.23,
subdivision 5; 297B.09, subdivision 1; 446A.085,
subdivisions 3, 8, by adding a subdivision; proposing
coding for new law in Minnesota Statutes, chapters
16A; 161; 174.

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

ARTICLE 1

CONSTITUTIONAL AMENDMENT

Section 1. new text begin CONSTITUTIONAL AMENDMENT PROPOSED.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to
the people. If the amendment is adopted, article XI, section 7,
will read:
new text end

Sec. 7. Public debt other than certificates of
indebtedness authorized in section 6 shall be evidenced by the
issuance of bonds of the state. All bonds issued under the
provisions of this section shall mature not more than 20 years
from their respective dates of issue and each law authorizing
the issuance of bonds shall distinctly specify the purposes
thereof and the maximum amount of the proceeds authorized to be
expended for each purpose. A separate and special state bond
fund shall be maintained on the official books and records.
When the full faith and credit of the state has been pledged for
the payment of bonds, the state auditor shall levy each year on
all taxable property within the state a tax sufficient with the
balance then on hand in the fund to pay all principal and
interest on bonds issued under this section due and to become
due within the ensuing year and to and including July 1 in the
second ensuing year. The legislature by law may appropriate
funds from any source to the state bond fund. The amount of
money actually received and on hand pursuant to appropriations
prior to the levy of the tax in any year shall be used to reduce
the amount of tax otherwise required to be levied.

new text begin Any law enacted between July 1, 2008, and June 30, 2016,
that authorizes bonds to be issued under this section in an
aggregate amount exceeding $130,000,000 must provide that at
least $130,000,000 of the bonds so authorized must be for
transportation purposes, as follows: 23 percent for capital
improvements to local streets and highways, 52.5 percent for
capital assistance to public transit systems within the
metropolitan area as defined by law, 1.5 percent for capital
assistance to public transit systems outside the metropolitan
area, and 23 percent for capital improvements to air
transportation facilities, port facilities, and public or
privately owned railroads. The requirement of this paragraph
may be applied to only one such law in any biennium.
new text end

new text begin article XIV, section 10, will read:
new text end

Sec. 10. The legislature may levy an excise tax on any
means or substance used for propelling vehicles on the public
highways of this state or on the business of selling it. The
proceeds of the tax shall be paid into the highway user tax
distribution fund.

new text begin Until June 30, 2016, the rate of tax under this section on
gasoline and special fuel, other than alternative fuels as
defined by law, may not be less than 25 cents per gallon. The
state shall impose this rate beginning January 1, 2007. Of the
revenue allocated to the trunk highway fund by section 5 and by
law from the tax imposed under this section, at least an amount
attributable to five cents of the tax must be expended solely
for major trunk highway improvement and safety projects as
defined by law.
new text end

new text begin article XIV will be amended by adding a section to read:
new text end

new text begin Sec. 12. Beginning July 1, 2007, all revenue from a tax
imposed by the state on the sale of new and used motor vehicles
must be allocated as follows:
new text end

new text begin (1) 32 percent must be allocated to the highway user tax
distribution fund;
new text end

new text begin (2) 43 percent must be appropriated for capital and
operating assistance to public transit systems within the
metropolitan area as defined by law;
new text end

new text begin (3) five percent must be appropriated for capital and
operating assistance to public transit systems outside the
metropolitan area as defined by law; and
new text end

new text begin (4) 20 percent may be appropriated for other purposes as
provided by law.
new text end

Sec. 2. new text begin SUBMISSION TO VOTERS.
new text end

new text begin The constitutional amendment proposed in section 1 must be
presented to the people at the 2006 general election. The
question submitted must be:
new text end

new text begin "Shall the Minnesota Constitution be amended to:
new text end

new text begin (1) require that once each biennium any law enacted in
fiscal years 2008 through 2016 inclusive to authorize state
bonding of at least $130,000,000 must allocate at least
$130,000,000 of bond proceeds to transportation purposes
including local streets and highways, public transit capital
assistance, air transportation facilities, port facilities, and
railroads;
new text end

new text begin (2) dedicate all revenue from the state motor vehicle sales
tax as follows:
new text end

new text begin (i) 32 percent to the highway user tax distribution fund;
new text end

new text begin (ii) 43 percent to capital and operating assistance to
public transit systems within the metropolitan area as defined
by law;
new text end

new text begin (iii) five percent to capital and operating assistance to
public transit systems outside the metropolitan area as defined
by law; and
new text end

new text begin (iv) 20 percent for other purposes as provided by law; and
new text end

new text begin (3) increase the state tax on gasoline and special fuel,
other than alternative fuels, from 20 to 25 cents per gallon
effective January 1, 2007, and dedicate the revenue to the state
from five cents of the tax to major trunk highway improvement
projects?
new text end

new text begin Yes .......
No ........"
new text end

ARTICLE 2

TRANSPORTATION FUNDING

Section 1.

new text begin [16A.576] APPROPRIATIONS FOR TRANSIT
OPERATIONS PROHIBITED.
new text end

new text begin On and after July 1, 2007, no appropriations may be made
from the general fund for operating assistance to public transit
systems.
new text end

Sec. 2.

Minnesota Statutes 2004, section 161.04, is
amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Allocation of additional funds. new text end

new text begin In fiscal year
2006 and each subsequent fiscal year, the commissioner, to the
extent permitted under federal law, must allocate the first
$160,000,000 in state road construction expenditures in excess
of state road construction expenditures in fiscal year 2005 to
projects that are primarily intended to enhance mobility,
improve safety, and address traffic congestion.
new text end

Sec. 3.

new text begin [161.042] MAJOR PROJECTS ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Account created. new text end

new text begin A major project account
is created in the trunk highway fund. The commissioner shall
deposit in the account:
new text end

new text begin (1) proceeds from the sale of trunk highway bonds
authorized under section 12;
new text end

new text begin (2) from January 1, 2007, through June 30, 2017, all
revenue to the trunk highway fund that is attributable to the
increases in motor fuel tax rates over rates in effect on
January 1, 2005; and
new text end

new text begin (3) money credited to the account under article 5, section
3.
new text end

new text begin Subd. 2. new text end

new text begin Appropriations. new text end

new text begin Money in the account is
appropriated to the commissioner as follows:
new text end

new text begin (a) Money deposited in the account under subdivision 1,
clause (1), is appropriated in the amounts of $150,000,000 on
the first day of fiscal years 2007 through 2011 inclusive. If
bond proceeds are not available on the first day of any fiscal
year, the appropriation under this paragraph is effective on the
day following the day that bond proceeds are available.
new text end

new text begin (b) Money deposited in the account under subdivision 1,
clause (2), is appropriated to the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Major projects. new text end

new text begin Until June 30, 2017, the
commissioner shall spend all money appropriated under
subdivision 2 for real property acquisition for, and preliminary
engineering, design, construction, and reconstruction of, major
trunk highway improvement and safety projects as defined in
section 161.0421.
new text end

Sec. 4.

new text begin [161.0421] MAJOR TRUNK HIGHWAY IMPROVEMENT AND
SAFETY PROJECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Fiscal years 2008 through 2012. new text end

new text begin For
purposes of the Minnesota Constitution, article XIV, section 10,
from July 1, 2007, through June 30, 2012:
new text end

new text begin (a) Major trunk highway improvement and safety projects in
the Department of Transportation's metropolitan district include:
new text end

new text begin (1) the addition of new lanes and a reconstruction of
marked Interstate Highway 35E from University Avenue to Maryland
Avenue, including reconstruction of the Cayuga bridge;
new text end

new text begin (2) the addition of a high-occupancy vehicle and transit
lane on marked Interstate Highway 35W from 46th Street to marked
Interstate Highway 94, including the Lake Street interchange;
new text end

new text begin (3) the addition of two lanes to marked Interstate Highway
494 from marked Trunk Highway 55 to marked Interstate Highway
94;
new text end

new text begin (4) the addition of two lanes to marked Trunk Highway 100
between 36th Street and Cedar Lake Road;
new text end

new text begin (5) completion of marked Trunk Highway 610 as a four-lane
freeway from marked Trunk Highway 169 to marked Interstate
Highway 94;
new text end

new text begin (6) bus rapid transit on marked Interstate Highway 35W from
Lakeville to Minneapolis;
new text end

new text begin (7) the Cedar Avenue bus rapid transit corridor from
Lakeville to Minneapolis;
new text end

new text begin (8) the northwest busway from Brooklyn Park to Minneapolis;
and
new text end

new text begin (9) express commuter bus corridors as identified in the
Metropolitan Council's transportation policy plan.
new text end

new text begin Total spending on projects in clauses (6) and (7) during the
period may not exceed $50,000,000.
new text end

new text begin (b) Major trunk highway improvement and safety projects in
other Department of Transportation districts include:
new text end

new text begin (1) reconstruction of the marked Interstate Highway 35
interchange at Mesaba Avenue in Duluth;
new text end

new text begin (2) a new river crossing on marked Trunk Highway 24 between
marked Interstate Highway 94 and marked Trunk Highway 10;
new text end

new text begin (3) reconstruction of marked Trunk Highway 1 between marked
Trunk Highway 169 and Tower;
new text end

new text begin (4) construction of passing lanes on marked Trunk Highway 1
between Tower and Ely;
new text end

new text begin (5) reconstruction of marked Trunk Highway 2 in Grand
Rapids;
new text end

new text begin (6) reconstruction of marked Trunk Highway 10 in St. Cloud
as a freeway;
new text end

new text begin (7) completion of phase 2 of the marked Trunk Highway 10
project in Detroit Lakes;
new text end

new text begin (8) construction of new lanes on marked Trunk Highway 14
between Owatonna and Waseca, and at the west edge of North
Mankato;
new text end

new text begin (9) reconstruction of marked Trunk Highway 19 in Redwood
Falls;
new text end

new text begin (10) construction of new lanes on marked Trunk Highway 19,
between marked Interstate Highway 35 and Northfield;
new text end

new text begin (11) construction of the Paynesville bypass on marked Trunk
Highway 23;
new text end

new text begin (12) construction of passing lanes on marked Trunk Highway
53 between Cook and International Falls;
new text end

new text begin (13) construction of new lanes on marked Trunk Highway 60
from north of Bigelow to Worthington;
new text end

new text begin (14) reconstruction of marked Trunk Highway 61 between Two
Harbors and Silver Cliff, between Gooseberry and Champins,
between Cook County Highway 34 and the Cascade River, and from
Beaver Bay to Silver Bay;
new text end

new text begin (15) construction of new lanes on marked Trunk Highway 63
between Stewartville and marked Trunk Highway 16;
new text end

new text begin (16) reconstruction of marked Trunk Highway 71 south of
Willmar;
new text end

new text begin (17) construction of a three-lane expressway on marked
Trunk Highway 71 between County State-Aid Highway 9 and marked
Trunk Highway 2;
new text end

new text begin (18) reconstruction of marked Trunk Highway 75 in Moorhead;
new text end

new text begin (19) reconstruction of marked Trunk Highway 169 from Aitkin
to north of its intersection with marked Trunk Highway 210;
new text end

new text begin (20) construction of additional lanes on marked Trunk
Highway 12 between marked Trunk Highway 25 and the Wright County
line;
new text end

new text begin (21) reconstruction of marked Trunk Highway 169 from north
of marked Trunk Highway 53 to marked Trunk Highway 1;
new text end

new text begin (22) construction of the intersection on marked Trunk
Highway 52 at County State-Aid Highway 9; and
new text end

new text begin (23) construction of the Paynesville bypass on marked Trunk
Highway 23.
new text end

new text begin Subd. 2. new text end

new text begin Fiscal years 2013 through 2017. new text end

new text begin For purposes of
the Minnesota Constitution, article XIV, section 10, from July
1, 2013, through June 30, 2017:
new text end

new text begin (a) Major trunk highway improvement projects in the
Department of Transportation's metropolitan district include:
new text end

new text begin (1) completion of construction of additional lanes on
marked Interstate Highway 494 from marked Trunk Highway 55 to
marked Interstate Highway 94;
new text end

new text begin (2) reconstruction and additional capacity surrounding the
intersection of marked Interstate Highway 494 and marked
Interstate Highway 35W;
new text end

new text begin (3) construction of additional lanes on marked Interstate
Highway 694 from marked Interstate Highway 35W to Rice Street;
new text end

new text begin (4) construction of an overpass on marked Trunk Highway 10
at Fairoak Avenue;
new text end

new text begin (5) construction of an interchange on marked Trunk Highway
10 at Thurston Avenue;
new text end

new text begin (6) construction of a six-lane expressway on marked Trunk
Highway 13 between marked Trunk Highway 801B and marked
Interstate Highway 35W;
new text end

new text begin (7) construction of interchanges on marked Trunk Highway 36
at McKnight Road and Hadley Avenue;
new text end

new text begin (8) reconstruction of marked Trunk Highway 61 at the
Hastings bridge; and
new text end

new text begin (9) construction of an interchange on marked Trunk Highway
65 at County State-Aid Highway 242.
new text end

new text begin (b) Major trunk highway improvement projects in other
Department of Transportation districts include:
new text end

new text begin (1) reconstruction of a bridge on marked Interstate Highway
90 at LaCrescent-Dresbach;
new text end

new text begin (2) construction of additional lanes on marked Trunk
Highway 3 between Faribault and Northfield;
new text end

new text begin (3) construction of the Big Lake bypass on marked Trunk
Highway 10;
new text end

new text begin (4) construction of additional lanes on marked Trunk
Highway 10 in Wadena;
new text end

new text begin (5) construction of an interchange and the Royalton bypass
on marked Trunk Highway 10;
new text end

new text begin (6) construction of interchanges on marked Trunk Highway 10
in Benton county;
new text end

new text begin (7) construction of safety improvements on marked Trunk
Highway 11 between Roseau and Baudette;
new text end

new text begin (8) construction of additional lanes on marked Trunk
Highway 23 between Richmond and Paynesville;
new text end

new text begin (9) construction of additional lanes on marked Trunk
Highway 14 between Dodge Center and Owatonna;
new text end

new text begin (10) construction of additional lanes on marked Trunk
Highway 23 between Marshall and marked Interstate Highway 90;
new text end

new text begin (11) reconstruction of marked Trunk Highway 25 between
County State-Aid Highway 12 and marked Trunk Highway 55 in
Buffalo;
new text end

new text begin (12) reconstruction and construction of shoulders on marked
Trunk Highway 29 between Alexandria and Parker's Prairie;
new text end

new text begin (13) widening of marked Trunk Highway 40 between the
Willmar airport and marked Trunk Highway 12;
new text end

new text begin (14) construction of an interchange on marked Trunk Highway
52 at marked Trunk Highway 57/County Highway 8;
new text end

new text begin (15) construction of passing lanes on marked Trunk Highway
59 between marked Trunk Highway 1 and marked Trunk Highway 2;
new text end

new text begin (16) construction of additional lanes on marked Trunk
Highway 60 between Windom and St. James;
new text end

new text begin (17) reconstruction of marked Trunk Highway 61 between
Tofte and County State-Aid Highway 2;
new text end

new text begin (18) reconstruction of marked Trunk Highway 61 from three
miles north of marked Trunk Highway 1 to four miles north of the
Cook County line;
new text end

new text begin (19) construction of additional lanes on marked Trunk
Highway 63 between Rochester and marked Trunk Highway 247;
new text end

new text begin (20) construction of an intersection on marked Trunk
Highway 169 at Main Street in Elk River;
new text end

new text begin (21) construction of new interchanges on marked Trunk
Highway 169 south of Mankato; and
new text end

new text begin (22) reconstruction of marked Trunk Highway 371 between
marked Trunk Highway 210 and Nisswa.
new text end

Sec. 5.

Minnesota Statutes 2004, section 161.23,
subdivision 5, is amended to read:

Subd. 5.

Receipts paid into trunk highway fund.

Money
received from the sale of such lands and properties less any fee
paid under subdivision 2a must be paid into the deleted text begin trunk
highway deleted text end new text begin right-of-way advance acquisition loan account in the
transportation revolving loan new text end fund.

Sec. 6.

new text begin [174.53] METROPOLITAN TRANSIT IMPROVEMENT FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Fund created. new text end

new text begin A metropolitan transit
improvement fund is created in the state treasury, consisting of
(1) money credited to the fund under section 297B.09,
subdivision 1, and (2) proceeds from bond sales designated by
law for deposit in the fund.
new text end

new text begin Subd. 2. new text end

new text begin Uses of fund. new text end

new text begin (a) Money in the fund may be
appropriated by law only for:
new text end

new text begin (1) operating assistance for transit operated by or
financially assisted by the Metropolitan Council; and
new text end

new text begin (2) major transit improvement projects as defined in
subdivision 3, including both capital and operating costs.
new text end

new text begin (b) Neither the Metropolitan Council nor the commissioner
of transportation may undertake any major transit improvement
project unless the council or commissioner determines that at
least 15 percent of the total capital cost of the project will
be paid from local funds.
new text end

new text begin Subd. 3. new text end

new text begin Major transit improvement projects. new text end

new text begin For
purposes of this section, "major transit improvement projects"
means:
new text end

new text begin (1) the Northstar commuter rail line from Big Lake to
Minneapolis;
new text end

new text begin (2) the central corridor light rail transit line from
Minneapolis to St. Paul;
new text end

new text begin (3) the Cedar Avenue bus rapid transit corridor from
Lakeville to Minneapolis;
new text end

new text begin (4) the Northwest busway from Brooklyn Park to Minneapolis;
new text end

new text begin (5) bus rapid transit on marked Interstate Highway 35W
between Minneapolis and Lakeville; and
new text end

new text begin (6) planning for tier II transit way projects as identified
in the Metropolitan Council's transportation policy plan.
new text end

Sec. 7.

Minnesota Statutes 2004, section 297B.09,
subdivision 1, is amended to read:

Subdivision 1.

Deposit of revenues.

(a) Money collected
and received under this chapter must be deposited as provided in
this subdivision.

(b) deleted text begin From July 1, 2002, to June 30, 2003, 32 percent of the
money collected and received must be deposited in the highway
user tax distribution fund, 20.5 percent must be deposited in
the metropolitan area transit fund under section 16A.88, and
1.25 percent must be deposited in the greater Minnesota transit
fund under section 16A.88. The remaining money must be
deposited in the general fund.
deleted text end

deleted text begin (c) deleted text end From July 1, 2003, to June 30, 2007, 30 percent of the
money collected and received must be deposited in the highway
user tax distribution fund, 21.5 percent must be deposited in
the metropolitan area transit fund under section 16A.88, 1.43
percent must be deposited in the greater Minnesota transit fund
under section 16A.88, 0.65 percent must be deposited in the
county state-aid highway fund, and 0.17 percent must be
deposited in the municipal state-aid street fund. The remaining
money must be deposited in the general fund.

deleted text begin (d) deleted text end new text begin (c) new text end On and after July 1, 2007, 32 percent of the money
collected and received must be deposited in the highway user tax
distribution fund, 20.5 percent must be deposited in the
metropolitan area transit fund under section 16A.88, new text begin 22.5
percent must be deposited in the metropolitan transit
improvement fund under section 174.53, new text end and deleted text begin 1.25 deleted text end new text begin five new text end percent
must be deposited in the greater Minnesota transit fund under
section 16A.88. The remaining money must be deposited in the
general fund.

Sec. 8.

Minnesota Statutes 2004, section 446A.085,
subdivision 3, is amended to read:

Subd. 3.

Establishment of fund.

A transportation
revolving loan fund is established to make loans for the
purposes described in subdivision 2. A highway account is
established in the fund for highway projects eligible under
United States Code, title 23. A transit account is established
in the fund for transit capital projects eligible under United
States Code, title 49. A state funds general loan account is
established in the fund for transportation projects eligible
under state law. new text begin A right-of-way advance acquisition loan
account is established in the fund for projects described in
subdivision 10a. new text end Other accounts may be established in the fund
as necessary for its management and administration. The
transportation revolving loan fund receives federal money under
the act and money from any source. Money received under this
section must be paid to the commissioner of finance and credited
to the transportation revolving loan fund. Money in the fund is
annually appropriated to the authority and does not lapse. The
fund must be credited with investment income, and with
repayments of principal and interest, except for servicing fees
assessed under sections 446A.04, subdivision 5, and 446A.11,
subdivision 8.

Sec. 9.

Minnesota Statutes 2004, section 446A.085,
subdivision 8, is amended to read:

Subd. 8.

Certification of projects.

new text begin (a) Except as
provided in paragraph (b), new text end the commissioner of transportation
shall consider the following information when evaluating
projects to certify for funding to the Transportation Committee:

(1) a description of the nature and purpose of the proposed
transportation project including an explanation of the need for
the project and the reasons why it is in the public interest;

(2) the relationship of the project to the area
transportation improvement program, the approved statewide
transportation improvement program, and to any transportation
plans required under state or federal law;

(3) the estimated cost of the project and the amount of
loans sought;

(4) proposed sources of funding in addition to loans sought
from the transportation revolving loan fund;

(5) the need for the project as part of the overall
transportation system;

(6) the overall economic impact of the project; and

(7) the extent to which completion of the project will
improve the movement of people and freight.

new text begin (b) For loans made from the right-of-way advance
acquisition loan account, the commissioner of transportation
shall consider the following information when evaluating
projects to certify for funding to the Transportation Committee:
new text end

new text begin (1) a description of the highway project, including
estimated schedules and costs, for which advance acquisition of
right-of-way is sought;
new text end

new text begin (2) the importance of the project as measured by the
criteria in paragraph (a), clauses (2) and (5) through (7);
new text end

new text begin (3) other sources of funding available for the acquisition;
new text end

new text begin (4) the necessity of preserving right-of-way for the
project as a means of reducing overall project costs and
preventing incompatible land uses;
new text end

new text begin (5) other options available for right-of-way preservation;
and
new text end

new text begin (6) the overall cost-effectiveness of advance right-of-way
acquisition for the project.
new text end

Sec. 10.

Minnesota Statutes 2004, section 446A.085, is
amended by adding a subdivision to read:

new text begin Subd. 10a. new text end

new text begin Right-of-way advance acquisition loan
account. new text end

new text begin (a) Loans from the right-of-way advance acquisition
loan account may be made to the state, counties, towns, and
statutory and home rule charter cities for the purchase of
property within the right-of-way of a state trunk highway shown
on an official map adopted pursuant to section 394.361 or
462.359.
new text end

new text begin (b) Loans under this subdivision may be made only:
new text end

new text begin (1) to accelerate the acquisition of primarily undeveloped
property when there is a reasonable probability that the
property will increase in value before highway construction, and
to update an expired environmental impact statement on a project
for which the right-of-way is being purchased;
new text end

new text begin (2) to avert the imminent conversion or the granting of
approvals that would allow the conversion of property to uses
that would jeopardize its availability for highway construction;
or
new text end

new text begin (3) to take advantage of open market opportunities when
developed properties become available for sale, provided all
parties involved are agreeable to the sale and funds are
available.
new text end

new text begin (c) A private property owner whose property is purchased
with proceeds of a loan under this subdivision may elect to
receive the purchase price either in a lump sum or in not more
than four annual installments without interest on the deferred
installments. If the purchase agreement provides for
installment payments, the loan may be made in installments
corresponding to those in the purchase agreement. The recipient
of an acquisition loan shall convey the property for the
construction of the highway at the same price that the recipient
paid for the property. The price may include the costs of
preparing environmental documents that were required for the
acquisition and that were paid for with money that the recipient
received from the account. Upon notification by the
commissioner to the loan recipient that the plan to construct
the highway has been abandoned or the anticipated location of
the highway changed, the recipient shall sell the property at
market value in accordance with the procedures required for the
disposition of the property.
new text end

new text begin (d) All rents and other money received by the loan
recipient because of the recipient's ownership of the property
and all proceeds from the conveyance or sale of the property
must be paid to the commissioner for deposit in the account.
Amounts so received may be applied to repayment of the loan.
new text end

Sec. 11. new text begin APPROPRIATION.
new text end

new text begin $9,000,000 is appropriated from the major projects account
in the trunk highway fund to the transportation revolving loan
fund in fiscal year 2006 for deposit in the right-of-way advance
acquisition loan account.
new text end

Sec. 12. new text begin TRUNK HIGHWAY BONDS; MAJOR PROJECTS.
new text end

new text begin The commissioner of finance shall sell and issue trunk
highway bonds of the state in an amount up to $750,000,000 in
the manner, upon the terms, and with the effect prescribed by
Minnesota Statutes, sections 167.50 to 167.52, and by the
Minnesota Constitution, article XIV, section 11, at the times
and in the amounts requested by the commissioner of
transportation. The proceeds of the bonds, except accrued
interest and any premium received on the sale of the bonds, must
be credited to the major projects account in the trunk highway
fund.
new text end

Sec. 13. new text begin TRUNK HIGHWAY BONDS; ROAD CONSTRUCTION.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $50,000,000 is
appropriated from the bond proceeds account in the trunk highway
fund to the commissioner of transportation for delivery of the
commissioner's state road construction program.
new text end

new text begin Subd. 2. new text end

new text begin Bond sale authorization. new text end

new text begin The commissioner of
finance shall sell and issue trunk highway bonds of the state in
an amount up to $50,000,000 in the manner, upon the terms, and
with the effect prescribed by Minnesota Statutes, sections
167.50 to 167.52, and by the Minnesota Constitution, article
XIV, section 11, at the times and in the amounts requested by
the commissioner of transportation. The proceeds of the bonds,
except accrued interest and any premium received on the sale of
the bonds, must be credited to the bond proceeds account in the
trunk highway fund.
new text end

Sec. 14. new text begin GENERAL OBLIGATION BONDS; TRANSIT.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriations. new text end

new text begin (a) $34,000,000 is
appropriated from the bond proceeds fund to the Metropolitan
Council on the first day of fiscal years 2008, 2010, 2012, 2014,
and 2016 for implementation of metropolitan transit improvement
projects as defined in Minnesota Statutes, section 174.53,
subdivision 3. The council may make grants from this
appropriation to the commissioner of transportation for commuter
rail projects and trunk highway improvements related to
metropolitan transit improvement projects.
new text end

new text begin (b) $1,000,000 is appropriated from the bond proceeds
account to the commissioner of transportation on the first day
of fiscal years 2008, 2010, 2012, 2014, and 2016 for capital
assistance to public transit systems outside the seven-county
metropolitan area.
new text end

new text begin Subd. 2. new text end

new text begin Authorization. new text end

new text begin To provide the money
appropriated by subdivision 1 from the bond proceeds fund, the
commissioner of finance shall sell and issue bonds of the state
in an amount up to $35,000,000 in the manner, on the terms, and
with the effect prescribed by Minnesota Statutes, sections
16A.631 to 16A.675, and by the Minnesota Constitution, article
XI, sections 4 to 7.
new text end

Sec. 15. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 3 to 5, 8 to 12, and 14 are effective July 1, 2007.
Sections 1, 2, 6, and 7 are effective July 1, 2007, except that
if the constitutional amendment proposed in article 1 is not
adopted at the 2006 general election, those sections do not take
effect. Section 13 is effective July 1, 2005.
new text end

ARTICLE 3

TRANSPORTATION STUDIES AND PILOT PROJECTS

Section 1. new text begin DEPARTMENT OF TRANSPORTATION; PILOT PROJECT ON
LOCAL APPROVAL OF INTERSTATE HIGHWAY PROJECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Designation of pilot projects. new text end

new text begin During the
period from July 1, 2005, through June 30, 2015, the
commissioner of transportation shall by executive order
designate two highway improvement projects on trunk highways
other than interstate highways as local approval pilot
projects. The order must identify the location of each project
and the anticipated letting date of the contract for the
project, which must be not later than June 30, 2015. Of the
trunk highway improvement projects so designated, one must be
located entirely or primarily within the Department of
Transportation's metropolitan construction district and one must
be located entirely or primarily in another construction
district.
new text end

new text begin Subd. 2. new text end

new text begin Pilot projects; application of local approval
law. new text end

new text begin A trunk highway improvement project designated as a local
approval pilot project must be considered an interstate highway
project for purposes of Minnesota Statutes, sections 161.162 to
161.167.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin Within 90 days of the completion of a
trunk highway project designated under subdivision 1, the
commissioner shall report to the chairs of the legislative
committees having jurisdiction over transportation policy and
finance on the results of the pilot project. The report must
include a description of the approval process used, a history of
the project including actions on the project by affected
municipalities, and the effect of designation as a pilot project
on the project's cost and completion schedule.
new text end

Sec. 2. new text begin DEPARTMENT OF TRANSPORTATION; PILOT PROJECT ON
PERFORMANCE-BASED SPECIFICATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section,
"performance-based specifications" are specifications for
contracts for the construction or reconstruction of a trunk
highway that primarily specify the required performance of the
completed facility rather than its method of construction, and
that include (1) acceptance of the contractor's finished work on
the project based on the measurement of the finished product's
fundamental engineering properties that predict performance, (2)
acceptance limits for the project that are established using a
statistically valid basis, (3) use of mathematical models to
quantify the relationship between the fundamental engineering
properties measured and the product performance, and (4) price
adjustment based on the expected life-cycle cost of the
completed facility.
new text end

new text begin Subd. 2. new text end

new text begin Designation of pilot projects. new text end

new text begin During the
period from July 1, 2005, through June 30, 2015, the
commissioner of transportation shall by executive order
designate three highway improvement projects on trunk highways
other than interstate highways as pilot projects on
performance-based specifications. The order must identify the
location of each project and the anticipated date for letting
the contract for the project, which must be not later than June
30, 2015. Of the trunk highway improvement projects so
designated, at least one must be located entirely or primarily
within the Department of Transportation's metropolitan
construction district and at least one must be located entirely
or primarily in another construction district. The commissioner
shall provide for performance-based specifications on all
contracts for the construction of each such project.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin Within 90 days of the completion of a
trunk highway project designated under subdivision 1, the
commissioner shall report to the chairs of the legislative
committees having jurisdiction over transportation policy and
finance on the results of the pilot projects. The report must
include a description of specifications for each project, a
history of the project from initial programming through
completion, and the effect of using performance-based
specifications on the project's cost and completion schedule.
new text end

Sec. 3. new text begin DEPARTMENT OF TRANSPORTATION; HIGHWAY
JURISDICTION REVIEW.
new text end

new text begin Subdivision 1. new text end

new text begin Review required. new text end

new text begin The commissioner of
transportation shall review existing studies of the appropriate
jurisdiction of highways presently on the state and local
highway systems. The review must include (1) criteria for
determining the appropriate jurisdiction of highways, (2)
identification of highways that are presently under
inappropriate jurisdiction based on those criteria, (3) the
extent to which inappropriate jurisdiction results in the
application of inappropriate highway standards, and the
potential for long-term costs savings through application of
more appropriate standards, and (4) a plan for transferring
state and local highways to appropriate jurisdiction.
new text end

new text begin Subd. 2. new text end

new text begin Report. new text end

new text begin The commissioner shall report to the
governor and legislature on the results of the review by January
15, 2007.
new text end

Sec. 4. new text begin DEPARTMENT OF TRANSPORTATION; COMMODITY CORRIDOR
PILOT PROJECT.
new text end

new text begin Subdivision 1. new text end

new text begin Designation of commodity corridors. new text end

new text begin The
commissioner of transportation shall designate two trunk
highways that are principal arterials but not interstate
highways as commodity corridors. The commissioner shall make
the designation based on the importance of each corridor to
interregional, interstate, and international trade and commerce
and the ability of each highway to safely accommodate vehicles
with sizes and weights authorized under this section.
new text end

new text begin Subd. 2. new text end

new text begin Size and weight restrictions on commodity
corridors. new text end

new text begin The commissioner shall by order designate maximum
axle weights, gross vehicle weights, and overall height, width,
and length of vehicles and combinations on commodity corridors.
A vehicle or combination operated on a commodity corridor and
within one mile of a commodity corridor that complies with the
size and weight limitations prescribed by the commissioner under
this subdivision may be operated without a permit and without
complying with any provision of Minnesota Statutes, sections
169.80 to 169.872, that conflicts with a size and weight
limitation prescribed by the commissioner.
new text end

Sec. 5. new text begin DEPARTMENT OF TRANSPORTATION AND METROPOLITAN
COUNCIL; STUDY OF TRANSIT EFFICIENCIES.
new text end

new text begin The Metropolitan Council and the Department of
Transportation's office of transit shall jointly conduct a study
of competitive procurement of transit service. The review must
include a description of current practices and policies,
evaluation of future opportunities for additional competitive
procurement, and recommendations for measures to allow public
transit operators to take advantage of efficiencies in state
procurement. The council and the office of transit shall report
to the legislature on the results of the review by January 15,
2006.
new text end

ARTICLE 4

ENVIRONMENTAL REQUIREMENTS

Section 1. new text begin DEPARTMENT OF TRANSPORTATION; PILOT PROJECT ON
WETLAND REPLACEMENT.
new text end

new text begin During the period from July 1, 2005, through June 30, 2015,
the commissioner of transportation shall by executive order
designate two highway improvement projects located entirely or
primarily within the seven-county metropolitan area as wetland
replacement pilot projects. The order must identify the
location of each project.
new text end

Sec. 2. new text begin LEGISLATIVE INTENT.
new text end

new text begin Subdivision 1. new text end

new text begin Cost savings for major trunk highway
projects. new text end

new text begin It is the intent of the legislature that cost savings
to the Department of Transportation and Metropolitan Council
that accrue as a result of this article and article 5 be spent
solely for major trunk highway projects as defined in Minnesota
Statutes, sections 161.0421 and 174.53, subdivision 3, and the
anticipated date for letting the contract for the project, which
must be not later than June 30, 2015.
new text end

new text begin Subd. 2. new text end

new text begin Pilot projects; application of wetlands
replacement law. new text end

new text begin For purposes of wetlands replacement
requirements under Minnesota Statutes, chapter 103G, a trunk
highway improvement project designated as a wetlands replacement
pilot project is subject to the same requirements as if the
project were located outside the seven-county metropolitan area.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin Within 60 days of the completion of a
trunk highway project designated under subdivision 1, the
commissioner shall report to the chairs of the legislative
committees having jurisdiction over transportation policy and
finance on the results of the pilot project. The report must
state the effect of designation as a wetlands replacement pilot
project on each such project's cost, environmental effects, and
completion schedule.
new text end

Sec. 3. new text begin ENVIRONMENTAL INVOLVEMENT PROGRAM.
new text end

new text begin The commissioner of transportation shall develop a process
for early coordination with, and involvement by, environmental
interests in the planning, design, preliminary and final
engineering, and construction of trunk highway improvement
projects. For purposes of this section, "environmental
interests" includes the Department of Natural Resources, the
Pollution Control Agency, the Board of Water and Soil Resources,
watershed districts, and other environmental interests, public
and private, that the commissioner identifies. The process must
(1) identify environmental interests to be consulted, (2)
establish timetables for consultation, (3) ensure that
consultation is included in the earliest feasible stages of
project development, and (4) provide for continued involvement
throughout each project until all environmental approvals and
permits have been obtained and compliance achieved with other
environmental requirements. The commissioner shall report to
the legislature by January 15, 2006, on its activities under
this section.
new text end

Sec. 4. new text begin POLLUTION CONTROL AGENCY; SINGLE PERMIT.
new text end

new text begin The commissioner of the Pollution Control Agency shall
develop a proposal under which the agency would combine into a
single permit all requirements in law or rule for the issuance
by the agency of permits or other approvals for highway
projects, including national pollutant discharge elimination
system permits. The report must describe the feasibility and
desirability of such a proposal, identify the costs and
benefits, specify a timetable for implementation, and identify
changes in law and rule necessary to implement the proposal.
The commissioner shall report to the legislature by January 15,
2006, on the commissioner's activities under this section.
new text end

Sec. 5. new text begin DEPARTMENT OF NATURAL RESOURCES; SINGLE PERMIT.
new text end

new text begin The commissioner of natural resources shall develop a
proposal under which the department would combine into a single
permit all requirements in law or rule for the issuance by the
department of permits or other approvals for construction or
reconstruction of bridges and culverts by the Department of
Transportation. The report must describe the feasibility and
desirability of such a proposal, identify the costs and
benefits, specify a timetable for implementation, and identify
changes in law and rule necessary to implement the proposal.
The commissioner shall report to the legislature by January 15,
2006, on the commissioner's activities under this section.
new text end

ARTICLE 5

DEPARTMENT OF TRANSPORTATION

Section 1.

new text begin [174.11] DEPARTMENT DESIGNATION AS CHARTER
AGENCY.
new text end

new text begin Subdivision 1. new text end

new text begin Designation. new text end

new text begin By July 1, 2005, the
governor shall designate the Department of Transportation as a
charter agency. Notwithstanding any other provision of law or
rule, as a charter agency the department has the powers and
duties specified in this section.
new text end

new text begin Subd. 2. new text end

new text begin Performance agreement. new text end

new text begin On July 1, 2005, and
each July 1 thereafter, the governor and the commissioner of
transportation shall enter into an annual performance agreement
for setting measurable organization goals for the department and
individual goals for the commissioner in key operational areas
of the agency. The organization and commissioner goals for each
fiscal year must include cost savings or revenue generation at
least equal to the budget reduction to the agency for that
fiscal year as provided in section 2. The annual performance
agreement must be submitted to the legislature within ten days
of its signing.
new text end

new text begin Subd. 3. new text end

new text begin Compensation. new text end

new text begin (a) Notwithstanding any other
law, the governor may set the salary of the commissioner of
transportation at a rate not exceeding 100 percent of the
governor's salary under section 15A.082. In addition, the
governor may authorize the payment of additional annual
compensation to the commissioner in an amount not in excess of
50 percent of the commissioner's annual salary, based upon the
governor's evaluation of the commissioner's performance in
relation to the goals set forth in the annual performance
agreement.
new text end

new text begin (b) Notwithstanding chapter 179A or any other law, the
commissioner of transportation may authorize the payment of
additional annual compensation to employees of the department in
a total amount not in excess of 50 percent of the commissioner's
annual salary, based upon the commissioner's evaluation of the
employees' performance.
new text end

new text begin Subd. 4. new text end

new text begin Personnel management. new text end

new text begin The commissioner of
transportation may waive any personnel rule or administrative
procedure of the Department of Employee Relations and may
exercise the authority granted to the Department of Employee
Relations relating to personnel management concerning employees
of the department, subject to any restrictions on such authority
as to employees of the department covered by a collective
bargaining agreement. The exclusive representative of employees
of the department may enter into agreements with the department
to grant the department the authority described in this
subdivision.
new text end

new text begin Subd. 5. new text end

new text begin Procurements. new text end

new text begin The commissioner of
transportation may waive any administrative rule or departmental
policy regarding procurement, fleet management, printing and
copying, maintenance of buildings and grounds, and acquisition
and use of information technology. The department may exercise
the authority of the Department of Administration as it relates
to the physical resources of the state that are occupied by the
department or of which the department is the primary occupant.
new text end

Sec. 2.

new text begin [174.12] RULE FLEXIBILITY FOR DEPARTMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Waiver; exemption. new text end

new text begin (a) The commissioner
of transportation may temporarily waive the provisions of any
administrative rule, or exempt the department from a rule, if
compliance with the rule adversely affects the ability of the
department to perform its duties as a charter agency in a more
cost-efficient manner and the requirements of this section are
met. The commissioner may waive a rule or exempt itself from a
rule under this section if the commissioner finds, based on
clear and convincing evidence:
new text end

new text begin (1) the application of the rule poses an undue financial
hardship on the department;
new text end

new text begin (2) the waiver or exemption is necessary to allow the
department and commissioner to meet the goals specified in an
agreement made under section 1;
new text end

new text begin (3) the waiver of or exemption from the requirements of a
rule in the specific case would not prejudice the substantial
legal rights of any person;
new text end

new text begin (4) substantially equal protection of public health,
safety, and welfare will be afforded by a means other than that
prescribed in the particular rule for which the waiver or
exemption is made; and
new text end

new text begin (5) the waiver or exemption would not result in a violation
of due process, a violation of state or federal law, or a
violation of the state or federal constitution.
new text end

new text begin (b) The commissioner must draft any waiver or exemption so
as to provide the narrowest exception possible to the provisions
of the rule and may place any condition on the waiver or
suspension that the commissioner finds desirable to protect the
public health, safety, and welfare.
new text end

new text begin (c) Each proposed waiver or exemption under this section
must specify the length of time it will be in effect.
new text end

new text begin Subd. 2. new text end

new text begin Notice. new text end

new text begin If the commissioner intends to waive or
exempt the department from a rule, the commissioner must give
notice of the intention by publication in the State Register and
by United States mail to persons who have registered their names
with the agency under section 14.14, subdivision 1a. The mailed
notice must include a clear and concise statement of the rule
and its applicability to the department, the commissioner's
reasons for making the waiver or exemption including the
commissioner's explanation of how the waiver or exemption meets
the criteria under subdivision 1, the extent of the intended
waiver or exemption, and a summary of the procedure provided in
this section including the rights of interested parties. In
addition to mailing and publication in the State Register, the
commissioner must make reasonable efforts to notify persons or
classes of persons who may be significantly affected by the
waiver or exemption by giving notice of the intention in
newsletters, newspapers, or other publications, or through other
means of communication.
new text end

new text begin Subd. 3. new text end

new text begin Procedure if no hearing requested. new text end

new text begin If no
hearing is requested on the proposed waiver or exemption within
30 days after the commissioner has complied with all notice
requirements under subdivision 2, the waiver or exemption takes
effect on the day following the expiration of the 30-day period.
new text end

new text begin Subd. 4. new text end

new text begin Procedure if hearing requested. new text end

new text begin If 25 or more
persons request a public hearing on the proposed waiver or
exemption during the 30 days following compliance by the
commissioner with all requirements under subdivision 2, the
department must schedule a hearing as provided under section
14.14, subdivision 2a. Notice of the hearing must be provided
in the same manner as notice under subdivision 2.
new text end

new text begin Subd. 5. new text end

new text begin Administrative law judge report; review and
comment. new text end

new text begin Within 30 days of the completion of the public
hearing, the administrative law judge conducting the hearing
must write a report stating findings of fact and conclusions and
recommendations. The conclusions and recommendations must be
limited to (1) the question of the extent to which the proposed
waiver or exemption meets the criteria in subdivision 1, and (2)
whether the proposed waiver or exemption should be allowed to
take effect immediately, not take effect, or be delayed for a
period of time specified in the report. If the chief
administrative law judge determines that the proposed waiver or
exemption should not take effect or should be delayed, the
commissioner must submit the proposed waiver or exemption to the
Legislative Coordinating Commission and to the house of
representatives and senate policy committees with primary
jurisdiction over state governmental operations for advice and
comment. The commissioner may not implement the waiver or
exemption until the commissioner has received and considered the
advice of the commission and committees. However, the
commissioner is not required to wait for advice for more than 60
days after the commission and committees have received the
agency's submission.
new text end

new text begin Subd. 6. new text end

new text begin Financial review. new text end

new text begin Each proposed waiver of or
exemption from a rule as authorized by this section or section
174.12 must be submitted to the commissioner of finance prior to
becoming effective. The commissioner of finance shall review
the waiver or exemption and may disapprove it if, based on clear
and convincing evidence, the commissioner determines that the
waiver or exemption would result in an adverse financial impact
on the state. A waiver or exemption disapproved under this
subdivision may not take effect.
new text end

Sec. 3. new text begin APPROPRIATION REDUCTION.
new text end

new text begin The commissioner of finance shall reduce the appropriation
from the trunk highway fund to the Department of Transportation
in fiscal year 2006 and each subsequent year by $......., and
credit the major projects account in the trunk highway fund by
an amount equal to the reduction.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective July 1, 2005, and expire June
30, 2010.
new text end