SF 1060

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 03/08/2010 11:50am

A bill for an act
relating to transportation; modifying management, priorities, research, and
planning provisions related to Department of Transportation; requiring reports;
amending Minnesota Statutes 2008, sections 161.53; 165.03, by adding a
subdivision; 174.02, subdivisions 1a, 2; 174.03, subdivisions 1a, 4, by adding a
subdivision; proposing coding for new law in Minnesota Statutes, chapter 167.

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

Section 1.

Minnesota Statutes 2008, section 161.53, is amended to read:

161.53 RESEARCH ACTIVITIES.

new text begin (a) new text end The commissioner may set aside in each fiscal year up to two percent of the
total amount of all funds appropriated to the commissioner other than county state-aid
and municipal state-aid highway funds for transportation research including public and
private research partnerships. The commissioner shall spend this money for (1) research
to improve the design, construction, maintenance, management, and environmental
compatibility of transportation systems new text begin , including research into and implementation of
innovations in bridge-monitoring technology and bridge inspection technology; bridge
inspection techniques and best practices; and the cost-effectiveness of deferred or lower
cost highway and bridge maintenance activities and its impacts on long-term trunk
highway maintenance needs new text end ; (2) research on transportation policies that enhance energy
efficiency and economic development; (3) programs for implementing and monitoring
research results; and (4) development of transportation education and outreach activities.

new text begin (b) new text end Of all funds appropriated to the commissioner other than state-aid funds, the
commissioner shall spend at least 0.1 percent, but not exceeding $1,200,000 in any fiscal
year, for research and related activities performed by the Center for Transportation Studies
of the University of Minnesota. The center shall establish a technology transfer and
training center for Minnesota transportation professionals.

Sec. 2.

Minnesota Statutes 2008, section 165.03, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Biennial report on bridge inspection quality assurance. new text end

new text begin By February
1 of each odd-numbered year, the commissioner shall submit an electronic report to
the chairs and ranking minority members of the senate and house of representatives
committees with jurisdiction over transportation policy and finance concerning quality
assurance for bridge inspections. At a minimum, the report must:
new text end

new text begin (1) summarize the bridge inspection quality assurance and quality control procedures
used in Minnesota;
new text end

new text begin (2) identify any substantive changes to quality assurance and quality control
procedures made in the past two years;
new text end

new text begin (3) provide a briefing on findings from bridge inspection quality reviews performed
in the past two years;
new text end

new text begin (4) summarize the results of any bridge inspection compliance review by the Federal
Highway Administration; and
new text end

new text begin (5) identify actions in response to the Federal Highway Administration compliance
review taken by the department in order to reach full compliance.
new text end

Sec. 3.

new text begin [167.60] DEBT FINANCING MANAGEMENT POLICY.
new text end

new text begin (a) By July 1, 2010, the commissioner shall develop a debt-financing management
policy for trunk highway bonds, federal advanced construction funds, and other forms of
highway financing based on debt or future repayment. The policy must be used by the
department to guide decision making related to debt financing. The commissioner may
update the policy as necessary. In developing and updating the policy, the commissioner
shall consult with the commissioner of management and budget and the chairs and ranking
minority members of the senate and house of representatives committees with jurisdiction
over transportation finance.
new text end

new text begin (b) The debt-financing management policy must address relevant financial issues,
including, but not limited to:
new text end

new text begin (1) limits on cumulative amounts of debt for the trunk highway system from all
state and federal sources;
new text end

new text begin (2) eligibility of projects for debt-financing funds;
new text end

new text begin (3) allocation and use of funds;
new text end

new text begin (4) terms of debt service and methods of repayment;
new text end

new text begin (5) management of trunk highway fund balance impacts; and
new text end

new text begin (6) mitigation of risks from different forms of debt financing.
new text end

new text begin (c) Upon creation or formal revision of the debt-financing management policy, the
commissioner shall distribute electronic copies to the chairs and ranking minority members
of the senate and house of representatives committees with jurisdiction over transportation
finance, and as required for reports to the legislature under section 3.195, subdivision 1.
new text end

Sec. 4.

Minnesota Statutes 2008, section 174.02, subdivision 1a, is amended to read:

Subd. 1a.

Mission; efficiency; legislative report, recommendations.

It is part
of the department's mission that within the department's resources the commissioner
shall endeavor to:

(1) prevent the waste or unnecessary spending of public money;

(2) use innovative fiscal and human resource practices to manage the state's
resources and operate the department as efficiently as possible;

(3) minimize the degradation of air and water quality;

(4) coordinate the department's activities wherever appropriate with the activities
of other governmental agencies;

(5) use technology where appropriate to increase agency productivity, improve
customer service, increase public access to information about government, and increase
public participation in the business of government;

(6) utilize constructive and cooperative labor-management practices to the extent
otherwise required by chapters 43A and 179A;

(7) new text begin ensure that the safety, maintenance, and preservation of Minnesota's
transportation infrastructure is a primary priority;
new text end

new text begin (8) new text end report to the legislature on the performance of agency operations and the
accomplishment of agency goals in the agency's biennial budget according to section
16A.10, subdivision 1; and

deleted text begin (8) deleted text end new text begin (9) new text end recommend to the legislature appropriate changes in law necessary to carry
out the mission and improve the performance of the department.

Sec. 5.

Minnesota Statutes 2008, section 174.02, subdivision 2, is amended to read:

Subd. 2.

Unclassified positions.

The commissioner may establish four positions
in the unclassified service at the deputy and assistant commissioner, assistant to
commissioner or personal secretary levels. No more than two of these positions shall be at
the deputy commissioner level. new text begin One of the four positions in the unclassified service must
serve as the chief engineer and be licensed as a professional engineer under section 326.02.
new text end

Sec. 6.

Minnesota Statutes 2008, section 174.03, subdivision 1a, is amended to read:

Subd. 1a.

Revision of deleted text begin state deleted text end new text begin statewide multimodal new text end transportation plan.

new text begin The
commissioner shall prepare a supplement to the statewide multimodal transportation plan
by July 1, 2011, that meets the requirements of clause (3) and of subdivision 1c. new text end The
commissioner shall revise the deleted text begin state deleted text end new text begin statewide multimodal new text end transportation plan by January
1, deleted text begin 1996, January 1, 2000, and, if the requirements of clauses (1) and (2) have been met
in the previous revision deleted text end new text begin 2016 new text end , new text begin and new text end by January 1 of every deleted text begin third even-numbered year deleted text end new text begin six
years new text end thereafter. Before final adoption of a revised plan, the commissioner shall hold a
hearing to receive public comment on the preliminary draft of the revised plan. The
revised deleted text begin state deleted text end new text begin statewide multimodal new text end transportation plan must:

(1) incorporate the goals of the state transportation system in section 174.01; deleted text begin and deleted text end

(2) establish objectives, policies, and strategies for achieving those goals new text begin ; and
new text end

new text begin (3) identify performance targets or indicators for measuring progress and
achievement of transportation system goals, objectives, or polices 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. 7.

Minnesota Statutes 2008, section 174.03, is amended by adding a subdivision
to read:

new text begin Subd. 1c. new text end

new text begin Statewide highway 20-year capital investment plan. new text end

new text begin In conjunction
with each revision of the statewide multimodal transportation plan, the commissioner shall
prepare a 20-year statewide highway capital investment plan that:
new text end

new text begin (1) incorporates performance measures and targets for assessing progress and
achievement of transportation goals, objectives, or policies for the state trunk highway
system established in the statewide multimodal transportation plan. Performance targets
must be based on objectively verifiable measures, and address, at a minimum, preservation
and maintenance of the structural condition of state highway bridges and pavements,
safety, and mobility;
new text end

new text begin (2) summarizes trends and impacts for each performance target over the past five
years;
new text end

new text begin (3) analyzes the impact of the department's capital investments and priorities over
the past five years on each performance target, including a comparison of prior plan
projected costs with actual costs;
new text end

new text begin (4) identifies the investments required to meet the established performance targets
over the next 20-year period;
new text end

new text begin (5) projects available state and federal funding over the 20-year period;
new text end

new text begin (6) identifies strategies to maximize the performance benefits of projected available
funding;
new text end

new text begin (7) establishes investment priorities for projected funding, including a schedule of
projects or improvement programs for the 20-year period together with projected costs
and impact on performance targets; and
new text end

new text begin (8) identifies those performance targets identified under clause (1) not expected to
meet the target outcome over the 20-year period together with alternative strategies that
could be implemented to meet the targets.
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. 8.

Minnesota Statutes 2008, section 174.03, subdivision 4, is amended to read:

Subd. 4.

Other duties.

The commissioner shall:

(1) construct and maintain transportation facilities as authorized by law;

(2) cooperate with, and may provide technical and financial assistance to, the
Metropolitan Council and regional development commissions in the regional transportation
planning process, in accordance with mutually acceptable terms and conditions;

(3) cooperate with, and may provide planning and technical assistance upon the
request of, any political subdivision or other governmental agency in accordance with
mutually accepted terms and conditions, except as otherwise restricted by law; deleted text begin and
deleted text end

(4) develop, revise, and monitor a statewide rail transportation plan as part of the
statewide transportation planning process, including a study and evaluation of alternative
methods for insuring adequate and economical transportation of agricultural commodities,
supplies, and other goods to and from rural areas of the state. The plan shall include an
analysis of rail lines in the state for the purpose of determining (i) eligibility of rail lines
for assistance under federal and state rail assistance programs, (ii) eligibility of rail lines
for inclusion in the state rail bank, and (iii) the actions required by the state to insure the
continuation of rail service that meets essential state needs and objectives new text begin ; and
new text end

new text begin (5) appoint an employee to serve as controller to establish and maintain a system
of internal controls to ensure the accuracy, thoroughness, and reliability of financial,
asset management, and performance information generated by the department and
reported to the legislature. The controller shall report annually, at a minimum, to
the chairs and ranking minority members of the senate and house of representatives
committees with jurisdiction over transportation policy and finance concerning agency
productivity, progress toward performance-based agency budgeting, and agency
efficiency. The report on agency efficiency must include cost estimates of projects, with
engineering, right-of-way acquisition, and construction costs compared to actual costs;
and district-to-district comparisons of estimated and actual costs and results achieved.
Effectiveness of the internal controls must be tested annually by auditors using standard
auditing techniques new text end .

Sec. 9. new text begin REPORT ON DEPARTMENT OF TRANSPORTATION MANAGEMENT
CHANGES.
new text end

new text begin (a) By February 1, 2011, the commissioner of transportation shall submit an
electronic report to the chairs and ranking minority members of the senate and house
of representatives committees with jurisdiction over transportation policy and finance
concerning recent changes in the department's organizational structure, internal procedures
and practices, and anticipated budget. The report must include, but is not limited to:
new text end

new text begin (1) a summary and review of the department organizational structure for bridge
management, maintenance, and inspections, including a brief explanation of any relevant
structural or organizational changes made since August 1, 2007;
new text end

new text begin (2) an analysis of the division of bridge-related duties and decision-making
responsibilities between districts and central administration;
new text end

new text begin (3) a summary of current agency procedures and processes, and any changes made
since August 1, 2007, related to:
new text end

new text begin (i) initiation of bridge re-rating and use of bridge inspection findings in the re-rating
process;
new text end

new text begin (ii) implementation of agencywide standards for documenting bridge inspection
findings and decision making for postinspection bridge maintenance; and
new text end

new text begin (iii) other changes designed to ensure or enhance the safety of Minnesota's
transportation infrastructure; and
new text end

new text begin (4) a budget analysis of anticipated funding and funding allocations for pavement
preservation and highway maintenance, safety projects, mobility enhancement projects,
and highway and bridge construction, for fiscal years 2012 through 2018, including a
discussion of any anticipated budgetary challenges or risks.
new text end

new text begin (b) In addition to an electronic report, the commissioner shall prepare a summary of
findings from the report for distribution and oral testimony to the chairs of the senate and
house of representatives committees with jurisdiction over transportation finance, who
shall make every reasonable effort to arrange testimony from the department during the
2011 legislative session.
new text end