1.1 	A bill for an act
1.2 	relating to transportation; specifying project prioritization in aid under local road 
1.3 	improvement and local bridge replacement and rehabilitation programs;amending 
1.4 	Minnesota Statutes 2012, sections 174.50, subdivision 6; 174.52, subdivision 5.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2012, section 174.50, subdivision 6, is amended to read:
1.7 		Subd. 6.Grant criteria; rulemaking. (a) The commissioner of transportation shall 
1.8 	adopt rules consistent with this section that establish criteria for determining priorities and 
1.9 	amounts of grants, which.
1.10 	(b) The criteria must place highest priority on projects that are developed in 
1.11 	conjunction with a trunk highway system project in a manner that minimizes traffic and 
1.12 	community impacts and produces efficiencies, and must be based on consideration of:
1.13 	(1) effectiveness of the project in eliminating a deficiency in the transportation 
1.14 	system;
1.15 	(2) number of persons affected by the deficiency;
1.16 	(3) economic feasibility;
1.17 	(4) effect on optimum land use and other concerns of state and regional planning;
1.18 	(5) availability of other financing capability; and
1.19 	(6) adequacy of provision for proper operation and maintenance after construction.

1.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

1.21 	Sec. 2. Minnesota Statutes 2012, section 174.52, subdivision 5, is amended to read:
1.22 		Subd. 5.Grant procedures and criteria. (a) The commissioner shall establish 
1.23 	procedures for statutory or home rule charter cities, towns, and counties to apply for 
2.1 	grants or loans from the fund and criteria to be used to select projects for funding. 
2.2 	The commissioner shall establish these procedures and criteria in consultation with 
2.3 	representatives appointed by the Association of Minnesota Counties, League of Minnesota 
2.4 	Cities, Minnesota Association of Townships, and the appropriate state agency as needed.
2.5 	(b)  The criteria for determining project priority and the amount of a grant or loan
2.6 	 must place highest priority on projects that are developed in conjunction with a trunk 
2.7 	highway system project in a manner that minimizes traffic and community impacts and 
2.8 	produces efficiencies, and must be based upon consideration of:
2.9 	(1) the availability of other state, federal, and local funds;
2.10 	(2) the regional significance of the route;
2.11 	(3) effectiveness of the proposed project in eliminating a transportation system 
2.12 	deficiency;
2.13 	(4) the number of persons who will be positively impacted by the project;
2.14 	(5) the project's contribution to other local, regional, or state economic development 
2.15 	or redevelopment efforts including livestock and other agricultural operations permitted 
2.16 	after the effective date of this section; and
2.17 	(6) ability of the local unit of government to adequately provide for the safe 
2.18 	operation and maintenance of the facility upon project completion.

2.19 	EFFECTIVE DATE. This section is effective the day following final enactment.