HF 5138

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/04/2024 09:42pm

A bill for an act
relating to transportation; allowing the use of dedicated transportation revenues
for local government debt service; amending Minnesota Statutes 2022, section
162.145, subdivision 5; Minnesota Statutes 2023 Supplement, sections 162.146,
by adding a subdivision; 174.49, subdivision 6.

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

Section 1.

Minnesota Statutes 2022, section 162.145, subdivision 5, is amended to read:

Subd. 5.

Use of funds.

(a) Funds distributed under this section are available only for
construction and maintenance of roads located within the city, including:

(1) land acquisition, environmental analysis, design, engineering, construction,
reconstruction, and maintenance;

(2) road projects partially located within the city;

(3) projects on county state-aid highways located within the city; deleted text begin and
deleted text end

(4) cost participation on road projects under the jurisdiction of another unit of
government deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) debt service for obligations issued by the city in accordance with chapter 475, provided
that the obligations are issued for a use allowable under this section.
new text end

(b) Except for projects under paragraph (a), clause (3), funds distributed under this
section are not subject to state-aid requirements under this chapter, including but not limited
to engineering standards adopted by the commissioner in rules.

Sec. 2.

Minnesota Statutes 2023 Supplement, section 162.146, is amended by adding a
subdivision to read:

new text begin Subd. 3. new text end

new text begin Use of funds. new text end

new text begin (a) Funds distributed under this section are available only for
construction and maintenance of roads located within the city, including:
new text end

new text begin (1) land acquisition, environmental analysis, design, engineering, construction,
reconstruction, and maintenance;
new text end

new text begin (2) road projects partially located within the city;
new text end

new text begin (3) projects on county state-aid highways located within the city;
new text end

new text begin (4) cost participation on road projects under the jurisdiction of another unit of government;
and
new text end

new text begin (5) debt service for obligations issued by the city in accordance with chapter 475, provided
that the obligations are issued for a use allowable under this section.
new text end

new text begin (b) Except for projects under paragraph (a), clause (3), funds distributed under this
section are not subject to state-aid requirements under this chapter, including but not limited
to engineering standards adopted by the commissioner in rules.
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 174.49, subdivision 6, is amended
to read:

Subd. 6.

Metropolitan counties; use of funds.

(a) A metropolitan county must use
funds that are received under subdivision 5 as follows:

(1) 41.5 percent for active transportation and transportation corridor safety studies;

(2) 41.5 percent for:

(i) repair, preservation, and rehabilitation of transportation systems; and

(ii) roadway replacement to reconstruct, reclaim, or modernize a corridor without adding
traffic capacity, except for auxiliary lanes with a length of less than 2,500 feet; and

(3) 17 percent for any of the following:

(i) transit purposes, including but not limited to operations, maintenance, capital
maintenance, demand response service, and assistance to replacement service providers
under section 473.388;

(ii) complete streets projects, as provided under section 174.75; and

(iii) projects, programs, or operations activities that meet the requirements of a mitigation
action under section 161.178, subdivision 4.

(b) Funds under paragraph (a), clause (3), must supplement and not supplant existing
sources of revenue.

new text begin (c) A metropolitan county may use funds that are received under subdivision 5 as debt
service for obligations issued by the county in accordance with chapter 475, provided that
the obligations are issued for a use allowable under this section.
new text end