HF 3659

as introduced - 89th Legislature (2015 - 2016) Posted on 03/29/2016 11:09am

A bill for an act
relating to transportation; governing passenger rail; establishing certain passenger
rail requirements on project development process, use of state funds, eminent
domain, and land use and acquisition; making technical changes; amending
Minnesota Statutes 2014, sections 117.189; 174.634; 174.636, subdivision 4,
by adding subdivisions; proposing coding for new law in Minnesota Statutes,
chapter 174.

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

Section 1.

Minnesota Statutes 2014, section 117.189, is amended to read:

117.189 PUBLIC SERVICE CORPORATION EXCEPTIONS.

Sections 117.031; 117.036; 117.055, subdivision 2, paragraph (b); 117.186; 117.187;
117.188; and 117.52, subdivisions 1a and 4, do not apply to the use of eminent domain
authority by public service corporations for any purpose other than construction or
expansion of:

(1) a high-voltage transmission line of 100 kilovolts or more, or ancillary
substations; deleted text begin or
deleted text end

(2) a natural gas, petroleum, or petroleum products pipeline, or ancillary compressor
stations or pumping stations deleted text begin . deleted text end new text begin ; or
new text end

new text begin (3) a passenger rail line, as provided in sections 174.631 to 174.636.
new text end

For purposes of an award of appraisal fees under section 117.085, the fees awarded
may not exceed $1,500 for all types of property except for a public service corporation's
use of eminent domain for a high-voltage transmission line, where the award may not
exceed $3,000.

For purposes of this section, "pipeline" does not include a natural gas distribution
line transporting gas to an end user.

Sec. 2.

new text begin [174.631] PASSENGER RAIL; DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of sections 174.631 to 174.636, the terms
defined in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of
transportation.
new text end

new text begin Subd. 3. new text end

new text begin Responsible authority. new text end

new text begin "Responsible authority" means the commissioner
or a public or private entity as provided under section 174.632, subdivision 2, having
primary responsibility for development of a particular passenger rail project, including
a passenger rail facility.
new text end

Sec. 3.

new text begin [174.6325] PASSENGER RAIL; PROJECT DEVELOPMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Corridor capacity analysis. new text end

new text begin (a) As part of passenger rail project
development and prior to initiating an alternatives analysis, the responsible authority
must perform a corridor capacity analysis.
new text end

new text begin (b) At a minimum, the corridor capacity analysis must:
new text end

new text begin (1) examine current transportation capacity within the proposed passenger rail
corridor, taking into account programmed and planned transportation projects; and
new text end

new text begin (2) evaluate the adequacy of transportation capacity based on both current
information and projections of demand, growth, and other relevant factors.
new text end

new text begin (c) Nothing in this subdivision prevents inclusion of the corridor capacity analysis
in other corridor investment plans or evaluations, including a feasibility study or
environmental analysis.
new text end

new text begin Subd. 2. new text end

new text begin Alternatives analysis. new text end

new text begin (a) As part of passenger rail project development
and prior to initiating an environmental analysis or preliminary engineering, the
responsible authority must perform an alternatives analysis.
new text end

new text begin (b) In addition to any other information or requirements, the alternatives analysis
must:
new text end

new text begin (1) take into account corridor capacity analysis findings and projections;
new text end

new text begin (2) include (i) a no-build option, and (ii) options for each applicable transportation
mode;
new text end

new text begin (3) evaluate capacity adequacy under each option;
new text end

new text begin (4) identify the most cost-effective option; and
new text end

new text begin (5) review conformity with (i) the comprehensive statewide freight and passenger
rail plan under section 174.03, subdivision 1b; (ii) the statewide multimodal transportation
plan; and (iii) the 20-year statewide highway capital investment plan under section
174.03, subdivision 1c.
new text end

new text begin (c) Nothing in this subdivision prevents inclusion of the alternatives analysis in a
subsequently undertaken environmental analysis.
new text end

new text begin Subd. 3. new text end

new text begin Alternatives analysis; public hearing and comment. new text end

new text begin (a) An
alternatives analysis for a passenger rail project, and any associated alignment or
mode recommendations, may not be finalized until after (1) public hearings under this
subdivision, and (2) review and due consideration of any public comment.
new text end

new text begin (b) The commissioner, in consultation with the responsible authority, must hold
hearings on a draft alternatives analysis. Hearings must be held within each of the cities
(1) located along the proposed corridor or route, and (2) in which a rail stop is reasonably
anticipated. The commissioner must provide adequate public notice of each hearing
and provide publicity to ensure that affected parties have an opportunity to present their
views at the hearings.
new text end

new text begin (c) For purposes of this subdivision, "adequate public notice" includes, at a
minimum: (1) publishing notice in at least two editions of each newspaper and regular
news periodical in circulation along the proposed route, through any legal notice section
and by press release; and (2) providing the notice no sooner than two weeks prior to
the date of the hearing.
new text end

new text begin (d) The commissioner must summarize the proceedings and testimony and maintain
on its Web site the record of each hearing held under this subdivision. The commissioner
must also maintain a Web-based docket system where public comments on the project can
be submitted and retained on an ongoing basis.
new text end

Sec. 4.

Minnesota Statutes 2014, section 174.634, is amended to read:

174.634 PASSENGER RAIL; FUNDING.

new text begin Subdivision 1. new text end

new text begin Sources of funding. new text end

deleted text begin (a) deleted text end The commissioner may apply for funding
from federal, state, regional, local, and private sources to carry out the commissioner's
deleted text begin duties deleted text end new text begin responsibilities new text end in section 174.632.

deleted text begin (b) Section 174.88, subdivision 2, does not apply to the commissioner's performance
of duties and exercise of powers under sections 174.632 to 174.636.
deleted text end

new text begin Subd. 2. new text end

new text begin Expenditure of state funds; study and analysis. new text end

new text begin The commissioner and
any political subdivision is prohibited from spending state funds for (1) a passenger rail
project study or planning, including a corridor investment plan, or (2) a corridor capacity
analysis or alternatives analysis under section 174.6325.
new text end

new text begin Subd. 3. new text end

new text begin Expenditure of state funds; project development and construction. new text end

new text begin The
commissioner and any political subdivision are prohibited from spending state funds for
a passenger rail project, including environmental analysis, design, preliminary or final
engineering, construction, equipment, or property acquisition, unless:
new text end

new text begin (1) either (i) the funds have been appropriated by a law that specifically identifies
the route and the expenditure purposes; or (ii) the passenger rail project is specifically
authorized by law; and
new text end

new text begin (2) the governor finds that the project serves a public purpose, is a matter of public
necessity, and is the preferred alternative to meet transportation needs in the corridor.
new text end

Sec. 5.

Minnesota Statutes 2014, section 174.636, subdivision 4, is amended to read:

Subd. 4.

Public hearings.

The commissioner shall hold public hearings as new text begin provided
under section 174.6325 and as new text end required by federal requirements.

Sec. 6.

Minnesota Statutes 2014, section 174.636, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Public property. new text end

new text begin Unless a passenger rail project is approved as
provided under section 174.634, subdivision 3, clauses (1) and (2), the commissioner,
notwithstanding section 174.636, subdivision 1, and any political subdivision, may not:
new text end

new text begin (1) acquire property for the purposes of the passenger rail project or primarily to
support passenger rail service; or
new text end

new text begin (2) enter into an agreement providing for use of property for the purposes of the
passenger rail project or primarily to support passenger rail service.
new text end

Sec. 7.

Minnesota Statutes 2014, section 174.636, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Eminent domain; contiguous land. new text end

new text begin (a) For purposes of this subdivision,
"owner" means the fee owner, or when applicable, the fee owner with the written consent
of the contract for deed vendee or the contract for deed vendee with the written consent of
the fee owner.
new text end

new text begin (b) This subdivision applies if a responsible authority or a railroad company
exercises the power of eminent domain to acquire property for a passenger rail line.
new text end

new text begin (c) When private real property classified as an agricultural or nonagricultural
homestead, nonhomestead agricultural land, rental residential property, and both
commercial and noncommercial seasonal residential recreational property, as those terms
are defined in section 273.13, is proposed to be acquired to construct a passenger rail by
eminent domain proceedings, the owner has the option to require the responsible authority
or railroad company to condemn a fee interest in any amount of contiguous, commercially
viable land which the owner wholly owns in undivided fee and to elect in writing to
transfer to the responsible authority or railroad company within 60 days after receipt of
the notice of the objects of the petition filed under section 117.055. Commercial viability
must be determined without regard to the presence of passenger rail. Within 60 days
after receipt by the responsible authority or railroad company of an owner's election to
exercise this option, the responsible authority or railroad company must provide written
notice to the owner of any objection the responsible authority or railroad company has to
the owner's election. If no objection is made within the 60 days, any objection is deemed
waived. Within 120 days of the service of an objection by the responsible authority
or railroad company, the district court having jurisdiction over the eminent domain
proceeding must hold a hearing to determine whether the responsible authority's or
railroad company's objection is upheld or rejected. The responsible authority or railroad
company has the burden of proof to prove by a preponderance of the evidence that the
property elected by the owner is not commercially viable. The owner has only one such
option and may not expand or otherwise modify an election without the consent of the
responsible authority or railroad company. The required acquisition of land under this
subdivision must be considered an acquisition for a public purpose and for use in the
responsible authority's or railroad company's public purpose, for purposes of chapter
117 and section 500.24, respectively; provided that the responsible authority or railroad
company divests itself completely of all lands used for farming or capable of being used
for farming no later than the time it can receive the market value paid at the time the land
was acquired less any diminution in value by reason of the presence of passenger rail.
Upon the owner's election under this subdivision, the easement interest over and adjacent
to the lands designated by the owner to be acquired in fee and sought in the condemnation
petition for a right-of-way for passenger rail automatically converts into a fee taking.
new text end

new text begin (d) All rights and protections provided to an owner under chapter 117 apply to
acquisition of land or an interest in land under this section.
new text end

new text begin (e) Within 120 days of an owner's election under this subdivision to require a
responsible authority or railroad company to acquire land, or 120 days after a district
court decision overruling the responsible authority's or railroad company's objection to
an election made under paragraph (c), the responsible authority or railroad company
must make a written offer to acquire that land and amend its condemnation petition to
include the additional land.
new text end

Sec. 8. new text begin REVISOR'S INSTRUCTION; RECODIFICATION.
new text end

new text begin The revisor of statutes shall recodify (1) Minnesota Statutes, section 174.632,
subdivision 1, as Minnesota Statutes, section 174.631, subdivision 2; and (2) Minnesota
Statutes, section 174.632, subdivision 2, as Minnesota Statutes, section 174.636,
subdivision 1a. The revisor shall revise the headnote and correct any cross-references
made necessary by this recodification.
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

Sec. 9. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 7 are effective the day following final enactment, and apply to any
project that has not commenced preliminary engineering or a subsequent project phase as
of the effective date of this section.
new text end