as introduced - 93rd Legislature (2023 - 2024) Posted on 04/01/2024 01:45pm
A bill for an act
relating to transportation; modifying various policies, including but not limited to
legislative routes, driving rules, small business contract preferences, nondivisible
loads, and greater Minnesota transit programs; making technical corrections;
appropriating money; amending Minnesota Statutes 2022, sections 161.115,
subdivisions 116, 117, by adding a subdivision; 161.321, subdivisions 2, 2b;
169.19, subdivision 2; 169.34, subdivision 1; 169.444, subdivision 4; 169.80, by
adding a subdivision; 174.03, subdivision 12; 174.22, subdivisions 2b, 7, 12, 14,
by adding subdivisions; 174.23, subdivision 2; 174.24, subdivisions 1a, 3b, 3c;
174.247; Minnesota Statutes 2023 Supplement, sections 161.045, subdivision 3;
174.40, subdivision 4a; Laws 2023, chapter 68, article 1, section 2, subdivision 4;
repealing Minnesota Statutes 2022, sections 169.011, subdivision 70; 169.25;
174.22, subdivisions 5, 8, 15; 174.23, subdivision 7; Minnesota Rules, parts
8835.0110, subparts 1, 1a, 6, 7, 10, 11a, 12a, 12b, 13a, 14a, 15, 15a, 16, 17, 18,
19; 8835.0210; 8835.0220; 8835.0230; 8835.0240; 8835.0250; 8835.0260;
8835.0265; 8835.0270; 8835.0275; 8835.0280; 8835.0290; 8835.0310; 8835.0320;
8835.0330, subparts 1, 3, 4; 8835.0350, subparts 1, 3, 4, 5.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2023 Supplement, section 161.045, subdivision 3, is amended
to read:
(a) A commissioner must not pay for any of the
following with funds from the highway user tax distribution fund or the trunk highway fund:
(1) Bureau of Criminal Apprehension laboratory;
(2) Explore Minnesota Tourism kiosks;
(3) Minnesota Safety Council;
(4) driver education programs;
(5) Emergency Medical Services Regulatory Board;
(6) Mississippi River Parkway Commission;
(7) payments to the Department of Information Technology Services in excess of actual
costs incurred for trunk highway purposes;
(8) personnel costs incurred on behalf of the governor's office;
(9) the Office of Aeronautics within the Department of Transportation;
(10) the Office of Transit and Active Transportation within the Department of
Transportation;
(11) the Office of Passenger Rail;
(12) purchase and maintenance of soft body armor under section 299A.38;
(13) tourist information centers;
(14) parades, events, or sponsorships of events;
deleted text begin
(15) the installation, construction, expansion, or maintenance of public electric vehicle
infrastructure;
deleted text end
deleted text begin (16)deleted text end new text begin (15)new text end the statewide notification center for excavation services pursuant to chapter
216D; and
deleted text begin (17)deleted text end new text begin (16)new text end manufacturing license plates.
(b) The prohibition in paragraph (a) includes all expenses for the named entity or program,
including but not limited to payroll, purchased services, supplies, repairs, and equipment.
This prohibition on spending applies to any successor entities or programs that are
substantially similar to the entity or program named in this subdivision.
Minnesota Statutes 2022, section 161.115, subdivision 116, is amended to read:
Beginning at a point on Route No. 1 deleted text begin at Sandstonedeleted text end new text begin and Route
No. 390new text end , thence extending in a northeasterly direction to a point on Route No. 103 as herein
established in Duluth.
new text begin
This section is effective the day after the commissioner of
transportation receives a copy of the agreement between the commissioner and the governing
body of Pine County to transfer jurisdiction of a portion of Legislative Route No. 185 and
notifies the revisor of statutes electronically or in writing that the conditions required to
transfer the route have been satisfied.
new text end
Minnesota Statutes 2022, section 161.115, subdivision 117, is amended to read:
Beginning at a point on Route No. 110 as herein established,
thence extending in an easterly direction to a point on Route No. deleted text begin 185 as herein established
at or near Askovdeleted text end new text begin 1 and Route No. 390new text end ; affording Isledeleted text begin ,deleted text end new text begin andnew text end Finlaysondeleted text begin , and Askov,deleted text end a reasonable
means of communication each with the other and other places within the state.
new text begin
This section is effective the day after the commissioner of
transportation notifies the revisor of statutes electronically or in writing of the effective
date.
new text end
Minnesota Statutes 2022, section 161.115, is amended by adding a subdivision to
read:
new text begin
Beginning at a point on Route No. 1 at Sandstone, thence
extending in a generally easterly direction to a point at or near the east bank of the Kettle
River.
new text end
new text begin
This section is effective the day after the commissioner of
transportation notifies the revisor of statutes electronically or in writing of the effective
date.
new text end
Minnesota Statutes 2022, section 161.321, subdivision 2, is amended to read:
(a)
The commissioner may award up to a deleted text begin sixdeleted text end new text begin 12new text end percent preference in the amount bid for
specified construction work to small targeted group businesses.
(b) The commissioner may designate a contract for construction work for award only
to small targeted group businesses if the commissioner determines that at least three small
targeted group businesses are likely to bid.
(c) The commissioner may award up to a four percent preference in the amount bid for
specified construction work to small businesses located in an economically disadvantaged
area as defined in section 16C.16, subdivision 7.
Minnesota Statutes 2022, section 161.321, subdivision 2b, is amended to read:
(a) The commissioner
may award up to a deleted text begin sixdeleted text end new text begin 12new text end percent preference in the amount bid for specified construction
work to veteran-owned small businesses, except when prohibited by the federal government
as a condition of receiving federal funds. When a bid preference is provided under this
section, the percentage of preference in bid amount under this subdivision may not be less
than the percentage of bid preference provided to any small targeted group business under
subdivision 2.
(b) When a bid preference is provided under this subdivision, the commissioner must
be as inclusive as possible in specifying contracts for construction work, as well as for
construction-related professional and technical services, available under this bid preference
program for veteran-owned small businesses. The term "construction" must be given broad
meaning for purposes of specifying and letting contracts for veteran-owned small businesses
and must include, but is not limited to, preplanning, planning, and all other
construction-related professional and technical services.
(c) When a bid preference is provided under this subdivision, the commissioner must
strive to ensure that contracts will be awarded on a proportional basis with contracts awarded
under subdivision 2.
(d) The commissioner may designate a contract for construction work for award only
to veteran-owned small businesses, if the commissioner determines that at least three
veteran-owned small businesses are likely to bid.
Minnesota Statutes 2022, section 169.19, subdivision 2, is amended to read:
No vehicle shall be turned to proceed in the opposite direction upon
any curve, or upon the approach to or near the crest of a grade, where the vehicle cannot be
seen by the driver of any other vehicle approaching from either direction within 1,000 feet,
nor shall the driver of a vehicle turn the vehicle to proceed in the opposite direction unless
the movement can be made safely and without interfering with other traffic. deleted text begin When necessary
to accommodate vehicle configuration ondeleted text end new text begin A driver is permitted to make a right-hand turn
into the farthest lane ofnew text end a roadway with two or more lanes in the same directiondeleted text begin , a driver
may turn the vehicle into the farthest lane and temporarily use the shoulder to make a U-turndeleted text end new text begin
in order to make a U-turn at a reduced-conflict intersection if it is safe to do sonew text end .
Minnesota Statutes 2022, section 169.34, subdivision 1, is amended to read:
(a) No person shall stop, stand, or park a vehicle, except
when necessary to avoid conflict with other traffic or in compliance with the directions of
a police officer or traffic-control device, in any of the following places:
(1) on a sidewalk;
(2) in front of a public or private driveway;
(3) within an intersection;
(4) within ten feet of a fire hydrant;
(5) on a crosswalk;
(6) within 20 feet of a crosswalk at an intersection;
(7) within 30 feet upon the approach to any flashing beacon, stop sign, or traffic-control
signal located at the side of a roadway;
deleted text begin
(8) between a safety zone and the adjacent curb or within 30 feet of points on the curb
immediately opposite the ends of a safety zone, unless a different length is indicated by
signs or markings;
deleted text end
deleted text begin (9)deleted text end new text begin (8)new text end within 50 feet of the nearest rail of a railroad crossing;
deleted text begin (10)deleted text end new text begin (9)new text end within 20 feet of the driveway entrance to any fire station and on the side of a
street opposite the entrance to any fire station within 75 feet of said entrance when properly
signposted;
deleted text begin (11)deleted text end new text begin (10)new text end alongside or opposite any street excavation or obstruction when such stopping,
standing, or parking would obstruct traffic;
deleted text begin (12)deleted text end new text begin (11)new text end on the roadway side of any vehicle stopped or parked at the edge or curb of a
street;
deleted text begin (13)deleted text end new text begin (12)new text end upon any bridge or other elevated structure upon a highway or within a highway
tunnel, except as otherwise provided by ordinance;
deleted text begin (14)deleted text end new text begin (13)new text end within a bicycle lane, except when posted signs permit parking; or
deleted text begin (15)deleted text end new text begin (14)new text end at any place where official signs prohibit stopping.
(b) No person shall move a vehicle not owned by such person into any prohibited area
or away from a curb such distance as is unlawful.
(c) No person shall, for camping purposes, leave or park a travel trailer on or within the
limits of any highway or on any highway right-of-way, except where signs are erected
designating the place as a campsite.
(d) No person shall stop or park a vehicle on a street or highway when directed or ordered
to proceed by any peace officer invested by law with authority to direct, control, or regulate
traffic.
Minnesota Statutes 2022, section 169.444, subdivision 4, is amended to read:
(a) A person driving a vehicle on a street
or highway with separated roadways is not required to stop the vehicle when approaching
or meeting a school bus that is on a different roadway.
(b) "Separated roadway" means a road that is separated from a parallel road by anew text begin barrier,new text end
safety islenew text begin ,new text end or deleted text begin safety zonedeleted text end new text begin mediannew text end .
Minnesota Statutes 2022, section 169.80, is amended by adding a subdivision to
read:
new text begin
(a) "Nondivisible load" or "nondivisible vehicle"
means any load or vehicle exceeding the applicable length, width, height, or weight limits
set forth in this chapter, which, if separated into smaller loads or vehicles would:
new text end
new text begin
(1) compromise the intended use of the load or vehicle;
new text end
new text begin
(2) destroy the value of the load or vehicle; or
new text end
new text begin
(3) require more than eight work hours to dismantle using appropriate equipment. The
applicant for a nondivisible load permit has the burden of proof as to the number of work
hours required to dismantle the load.
new text end
new text begin
(b) A vehicle transporting a divisible load may simultaneously transport multiple items
unless doing so would require an additional permit because the vehicle, when loaded with
multiple items, would exceed the limits set forth in this chapter.
new text end
Minnesota Statutes 2022, section 174.03, subdivision 12, is amended to read:
(a) The
commissioner must implement performance measures and deleted text begin annualdeleted text end targets for the trunk
highway system in order to construct resilient infrastructure, enhance the project selection
for all transportation modes, improve economic security, and achieve the state transportation
goals established in section 174.01.
(b) At a minimum, the transportation planning process must include:
(1) an inventory of transportation assets, including but not limited to bridge, pavement,
geotechnical, pedestrian, bicycle, and transit asset categories;
(2) deleted text begin lag (resulting), and where practicable lead (predictive),deleted text end new text begin establishment of statewide
new text end performance measures and deleted text begin annualdeleted text end targetsnew text begin , reporting of performance measure results, and
where possible, performance forecastsnew text end that are:
(i) statewide andnew text begin , where data allow,new text end district-specific;
(ii) for assets in each asset category specified in clause (1) deleted text begin for a period of up to 60 yearsdeleted text end ;
and
(iii) identified in collaboration with the public;
(3) gap identification and an explanation of the difference between performance targets
and current status; and
(4) life cycle assessment and corridor risk assessment as part of asset management
programs in each district of the department.
(c) At a minimum, the ten-year capital highway investment plan in each district of the
department must:
(1) be based on expected funding during the plan period;
(2) identify investments within each of the asset categories specified in paragraph (b),
clause (1)new text begin , that are funded through the trunk highway capital programnew text end ;
(3) deleted text begin recommenddeleted text end new text begin identifynew text end specific trunk highway segments new text begin programmed new text end to be removed
from the trunk highway system; and
(4) deliver annual progress toward achieving the state transportation goals established
in section 174.01.
(d) Annually by December 15, the commissioner must report trunk highway performance
measures and annual targets and identify gaps, including information detailing the
department's progress on achieving the state transportation goals, to the chairs and ranking
minority members of the legislative committees having jurisdiction over transportation
policy and finance. deleted text begin The report must be signed by the department's chief engineer.
deleted text end
Minnesota Statutes 2023 Supplement, section 174.40, subdivision 4a, is amended
to read:
A statutory or home rule charter city, county, town, or federally
recognized Indian Tribe is eligible to receive funding under this sectionnew text begin . A statutory or home
rule charter city, county, or town is eligible to receive funding for infrastructure projects
under this sectionnew text end only if it has adopted subdivision regulations that require safe routes to
school infrastructure in developments authorized on or after June 1, 2016.
Laws 2023, chapter 68, article 1, section 2, subdivision 4, is amended to read:
Subd. 4.Local Roads
|
||||||
(a) County State-Aid Highways |
917,782,000 |
991,615,000 |
This appropriation is from the county state-aid
highway fund under Minnesota Statutes,
sections 161.081, 174.49, and 297A.815,
subdivision 3, and chapter 162, and is
available until June 30, 2033.
If the commissioner of transportation
determines that a balance remains in the
county state-aid highway fund following the
appropriations and transfers made in this
paragraph and that the appropriations made
are insufficient for advancing county state-aid
highway projects, an amount necessary to
advance the projects, not to exceed the balance
in the county state-aid highway fund, is
appropriated in each year to the commissioner.
Within two weeks of a determination under
this contingent appropriation, the
commissioner of transportation must notify
the commissioner of management and budget
and the chairs, ranking minority members, and
staff of the legislative committees with
jurisdiction over transportation finance
concerning funds appropriated. The governor
must identify in the next budget submission
to the legislature under Minnesota Statutes,
section 16A.11, any amount that is
appropriated under this paragraph.
(b) Municipal State-Aid Streets |
236,360,000 |
251,748,000 |
This appropriation is from the municipal
state-aid street fund under Minnesota Statutes,
chapter 162, and is available until June 30,
2033.
If the commissioner of transportation
determines that a balance remains in the
municipal state-aid street fund following the
appropriations and transfers made in this
paragraph and that the appropriations made
are insufficient for advancing municipal
state-aid street projects, an amount necessary
to advance the projects, not to exceed the
balance in the municipal state-aid street fund,
is appropriated in each year to the
commissioner. Within two weeks of a
determination under this contingent
appropriation, the commissioner of
transportation must notify the commissioner
of management and budget and the chairs,
ranking minority members, and staff of the
legislative committees with jurisdiction over
transportation finance concerning funds
appropriated. The governor must identify in
the next budget submission to the legislature
under Minnesota Statutes, section 16A.11, any
amount that is appropriated under this
paragraph.
(c) Other Local Roads |
(1) Local Bridges |
18,013,000 |
-0- |
This appropriation is from the general fund to
replace or rehabilitate local deficient bridges
under Minnesota Statutes, section 174.50. This
is a onetime appropriation and is available
until June 30, 2027.
(2) Local Road Improvement |
18,013,000 |
-0- |
This appropriation is from the general fund
for construction and reconstruction of local
roads under Minnesota Statutes, section
174.52. This is a onetime appropriation and
is available until June 30, 2027.
(3) Local Transportation Disaster Support |
4,300,000 |
1,000,000 |
This appropriation is from the general fund to
providenew text begin :
new text end
new text begin (i)new text end a cost-share for federal assistance from the
Federal Highway Administration for the
emergency relief program under United States
Code, title 23, section 125deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(ii) assistance for roadway damage on the
state-aid or federal-aid system associated with
state or federally declared disasters ineligible
for assistance from existing state and federal
disaster programs.
new text end
Of the appropriation in fiscal year 2024,
$3,300,000 is onetime and is available until
June 30, 2027.
(4) Metropolitan Counties |
20,000,000 |
-0- |
This appropriation is from the general fund
for distribution to metropolitan counties as
provided under Minnesota Statutes, section
174.49, subdivision 5, for use in conformance
with the requirements under Minnesota
Statutes, section 174.49, subdivision 6.
new text begin
Minnesota Statutes 2022, sections 169.011, subdivision 70; and 169.25,
new text end
new text begin
are repealed.
new text end
Minnesota Statutes 2022, section 174.22, is amended by adding a subdivision
to read:
new text begin
"Complementary paratransit
service (ADA)" means public transportation service provided on a regular basis where fixed
route public transit service exists and is designed exclusively or primarily to serve individuals
who are elderly or disabled and unable to use regular means of public transportation.
new text end
Minnesota Statutes 2022, section 174.22, subdivision 2b, is amended to read:
"Elderly and disabled service" means
transportation service provided on a regular basis innew text begin smallnew text end urbanized or large urbanized
areas and designed exclusively or primarily to serve individuals who are elderly or disabled
and unable to use regular means of public transportation.
Minnesota Statutes 2022, section 174.22, is amended by adding a subdivision to
read:
new text begin
"Large urbanized area service" means a public
transportation service operated in areas located outside the metropolitan area with a
population greater than 200,000 that is designated by the United States Census Bureau.
Large urbanized area service does not include complementary paratransit service (ADA),
as defined in subdivision 1a.
new text end
Minnesota Statutes 2022, section 174.22, subdivision 7, is amended to read:
deleted text begin
"Public transit" or "transit" means
general or specific transportation service provided to the public on a regular and continuing
basis. "Public transit" or "transit" includes paratransit and regular route transit.
deleted text end
new text begin
"Public
transportation" means regular, continuing shared-ride surface transportation services that
are open to the general public or open to a segment of the general public defined by age,
disability, or low income. Public transportation does not include:
new text end
new text begin
(1) intercity passenger rail transportation provided by the entity described in United
States Code, title 49, section 243, or a successor entity;
new text end
new text begin
(2) intercity bus service;
new text end
new text begin
(3) charter bus service;
new text end
new text begin
(4) school bus service;
new text end
new text begin
(5) sightseeing service;
new text end
new text begin
(6) courtesy shuttle service for patrons of one or more specific establishments; or
new text end
new text begin
(7) intraterminal or intrafacility shuttle services.
new text end
Minnesota Statutes 2022, section 174.22, subdivision 12, is amended to read:
"Rural area service" means anew text begin publicnew text end transportation service
deleted text begin primarilydeleted text end operated in deleted text begin an area having population centers of less than 2,500 personsdeleted text end new text begin rural
areas that have not been designated in the most recent decennial census as an urbanized
area by the United States Census Bureaunew text end .
Minnesota Statutes 2022, section 174.22, subdivision 14, is amended to read:
"Small deleted text begin urbandeleted text end new text begin urbanizednew text end area service"
means anew text begin publicnew text end transportation service deleted text begin operating in an area with a population between 2,500
and 50,000deleted text end new text begin operated in areas located outside the metropolitan area with a population of at
least 50,000 but less than 200,000 that is designated by the United States Census Bureau.
Small urbanized area service does not include complementary paratransit service (ADA),
as defined in subdivision 1anew text end .
Minnesota Statutes 2022, section 174.23, subdivision 2, is amended to read:
(a) The commissioner shall seek
out and select eligible recipients of financial assistance under sections 174.21 to 174.27.
(b) The commissioner shall establish deleted text begin by rule thedeleted text end procedures and standards for review
and approval of applications for financial assistance submitted to the commissioner pursuant
to sections 174.21 to 174.27. Any applicant shall provide to the commissioner any financial
or other information required by the commissioner to carry out the commissioner's duties.
The commissioner may require local contributions from applicants as a condition for
receiving financial assistance.
deleted text begin
(c) Before the commissioner approves any grant, the application for the grant may be
reviewed by the appropriate regional development commission only for consistency with
regional transportation plans and development guides. If an applicant proposes a project
within the jurisdiction of a transit authority or commission or a transit system assisted or
operated by a city or county, the application shall also be reviewed by that commission,
authority, or political subdivision for consistency with its transit programs, policies, and
plans.
deleted text end
Minnesota Statutes 2022, section 174.24, subdivision 1a, is amended to read:
(a) The commissioner shall
develop a greater Minnesota transit investment plan that contains a goal of meeting at least
80 percent of total transit service needs in greater Minnesota by July 1, 2015, and meeting
at least 90 percent of total transit service needs in greater Minnesota by July 1, 2025.
(b) The plan must include, but is not limited to, the following:
(1) an analysis of ridership and total transit service needs throughout greater Minnesota;
(2) a calculation of the level and type of service required to meet total transit service
needs, for the transit system classifications as provided under subdivision 3b, paragraph
(c), ofnew text begin largenew text end urbanized area, small deleted text begin urbandeleted text end new text begin urbanizednew text end area, rural area, deleted text begin anddeleted text end elderly and disabled
servicenew text begin , and complementary paratransit service (ADA)new text end ;
(3) an analysis of costs and revenue options;
(4) a plan to reduce total transit service needs as specified in this subdivision; and
(5) identification of the operating and capital costs necessary to meet 100 percent of the
greater Minnesota transit targeted and projected bus service hours, as identified in the greater
Minnesota transit plan, for 2010, 2015, 2020, 2025, and 2030.
(c) The plan must specifically address special transportation service ridership and needs.
The plan must also provide that recipients of operating assistance under this section provide
fixed route public transit service without charge for disabled veterans in accordance with
subdivision 7.
Minnesota Statutes 2022, section 174.24, subdivision 3b, is amended to read:
deleted text begin
(a) The commissioner shall
determine the total operating cost of any public transit system receiving or applying for
assistance in accordance with generally accepted accounting principles. To be eligible for
financial assistance, an applicant or recipient shall provide to the commissioner all financial
records and other information and shall permit any inspection reasonably necessary to
determine total operating cost and correspondingly the amount of assistance that may be
paid to the applicant or recipient. Where more than one county or municipality contributes
assistance to the operation of a public transit system, the commissioner shall identify one
as lead agency for the purpose of receiving money under this section.
deleted text end
deleted text begin (b)deleted text end new text begin (a)new text end Prior to distributing operating assistance to eligible recipients for any contract
period, the commissioner shall place all recipients into one of the following classifications:new text begin
largenew text end urbanized area service, small deleted text begin urbandeleted text end new text begin urbanizednew text end area service, rural area service, deleted text begin anddeleted text end
elderly and disabled servicenew text begin , and complementary paratransit service (ADA)new text end .
deleted text begin (c)deleted text end new text begin (b)new text end The commissioner shall distribute fundsnew text begin for the operating assistance amountnew text end under
this section so that the percentage of deleted text begin total contracted operating costdeleted text end new text begin local sourcesnew text end paid by
any recipient deleted text begin from local sourcesdeleted text end will not exceed the percentage for that recipient's
classification, except as provided in this subdivisiondeleted text begin . The percentages must bedeleted text end :
(1) for urbanized area service and small urban area service, 20 percent;
(2) for rural area service, 15 percent; and
(3) for elderly and disabled servicenew text begin and complementary paratransit service (ADA)new text end , 15
percent.
deleted text begin
Except as provided in a United States Department of Transportation program allowing or
requiring a lower percentage to be paid from local sources, the remainder of the recipient's
total contracted operating cost will be paid from state sources of funds less any assistance
received by the recipient from the United States Department of Transportation.
deleted text end
deleted text begin (d)deleted text end new text begin (c)new text end For purposes of this subdivision, "local sources" means all local sources of funds
and includes all operating revenue, tax levies, and contributions from public fundsdeleted text begin , except
that the commissioner may exclude from the total assistance contract revenues derived from
operations the cost of which is excluded from the computation of total operating costdeleted text end .
deleted text begin (e)deleted text end new text begin (d)new text end If a recipient informs the commissioner in writing after the establishment of these
percentages but prior to the distribution of financial assistance for any year that paying its
designated percentage of deleted text begin total operating costdeleted text end new text begin the operating assistance amountnew text end from local
sources will cause undue hardship, the commissioner may reduce the percentage to be paid
from local sources by the recipient and increase the percentage to be paid from local sources
by one or more other recipients inside or outside the classification. However, the
commissioner may not reduce or increase any recipient's percentage under this paragraph
for more than two years successively. If for any year the funds appropriated to the
commissioner to carry out the purposes of this section are insufficient to allow the
commissioner to pay the state share of deleted text begin total operating costdeleted text end new text begin the operating assistance amountnew text end
as provided in this paragraph, the commissioner shall reduce the state share in each
classification to the extent necessary.
Minnesota Statutes 2022, section 174.24, subdivision 3c, is amended to read:
The commissioner shall determine the total cost
of any planning and engineering design, capital assistance, other capital expenditures, and
other assistance for public transit services that furthers the purposes of section 174.21 for
any public transit system receiving or applying for the assistance in accordance with generally
accepted accounting principles. new text begin The percentage of local sources paid by any recipient must
not exceed 20 percent of the awarded amount. new text end To be eligible for non-operating-cost financial
assistance, an applicant or recipient shall provide to the commissioner all financial records
and other information and shall permit any inspection reasonably necessary to determine
total cost and the amount of assistance that may be paid to the applicant or recipient. When
more than one county or municipality contributes assistance to the operation of a public
transit system, the commissioner shall identify one as a lead agency for the purpose of
receiving money under this section. The commissioner has the sole discretion to determine
the amount of state funds distributed to any recipient for non-operating-cost assistance.
Minnesota Statutes 2022, section 174.247, is amended to read:
(a) By February 15 annually, the commissioner shall submit a report to the legislature
on transit services outside the metropolitan area. deleted text begin The Metropolitan Council anddeleted text end Any public
transit system receiving assistance under section 174.24 shall provide assistance in creating
the report, as requested by the commissioner.
(b) The report must include, at a minimum, the following:
(1) a descriptive overview of public transit in Minnesota;
(2) a descriptive summary of funding sources and assistance programs;
(3) a summary of each public transit system receiving assistance under section 174.24;
(4) data that identifies use of volunteers in providing transit service;
(5) financial data that identifies for each public transit system and for each transit system
classification under section 174.24, subdivision 3b:
(i) the operating and capital costs;
(ii) each of the funding sources used to provide financial assistance; and
(iii) for federal funds, the amount from each specific federal program under which
funding is provided;
(6) a summary of the differences in program implementation requirements and aid
recipient eligibility between federal aid and state sources of funds;new text begin and
new text end
(7) deleted text begin in each odd-numbered year,deleted text end an analysis of public transit system needs and operating
expenditures on an annual basis, which must include a methodology for identifying monetary
needs, and calculations of:
(i) the total monetary needs for all public transit systems, for the year of the report and
the ensuing five years;
(ii) the total expenditures from local sources for each transit system classification;
(iii) the comprehensive transit assistance percentage for each transit system classification,
which equals (A) the expenditures identified under item (ii), for a transit system classification,
divided by (B) the amounts identified under subitem (A), plus the sum of state sources of
funds plus federal funds provided to all transit systems in that classification; and
(iv) the amount of surplus or insufficient funds available for paying capital and operating
costs to fully implement the greater Minnesota transit investment plan under section 174.24,
subdivision 1a.
new text begin
The revisor of statutes shall renumber the subdivisions in Minnesota Statutes, section
174.22, in alphabetical order and correct any cross-reference changes that result.
new text end
new text begin
(a)
new text end
new text begin
Minnesota Statutes 2022, sections 174.22, subdivisions 5, 8, and 15; and 174.23,
subdivision 7,
new text end
new text begin
are repealed.
new text end
new text begin
(b) Minnesota Rules, parts 8835.0110, subparts 1, 1a, 6, 7, 10, 11a, 12a, 12b, 13a, 14a,
15, 15a, 16, 17, 18, and 19; 8835.0210; 8835.0220; 8835.0230; 8835.0240; 8835.0250;
8835.0260; 8835.0265; 8835.0270; 8835.0275; 8835.0280; 8835.0290; 8835.0310;
8835.0320; 8835.0330, subparts 1, 3, and 4; and 8835.0350, subparts 1, 3, 4, and 5,
new text end
new text begin
are
repealed.
new text end
Repealed Minnesota Statutes: 24-05297
"Safety zone" means the area or space officially set apart within a roadway for the exclusive use of pedestrians and which is protected or is so marked or indicated by adequate signs as to be plainly visible at all times set apart as a safety zone.
No vehicle shall at any time be driven through a safety zone.
"Operating deficit" means the amount by which the total prudent operating expenses incurred in the operation of the public transit system exceeds the amount of operating revenue derived from the system.
"Regular route transit" means transportation of passengers for hire by a motor vehicle or other means of conveyance by any person operating on a regular and continuing basis as a common carrier on fixed routes and schedules. "Regular route transit" does not include transportation of children to or from school or of passengers between a common carrier terminal station and a hotel or motel, transportation by common carrier railroad or common carrier railroads or by taxi, transportation furnished by a person solely for that person's employees or customers, or paratransit.
"Urbanized area service" means a transportation service operating in an urban area of more than 50,000 persons but does not include elderly and disabled service, as defined in subdivision 2b.
The commissioner shall by rule define "total operating cost" as the term is used in carrying out the purposes of section 174.24. "Total operating cost" may include provisions for a fee for service. The commissioner shall consult with eligible recipients to the maximum extent feasible in formulating these rules and develop necessary and reasonable changes in cost and fee allowability provisions and financial examination procedures where possible. The rules are subject to the provisions in the Administrative Procedure Act of sections 14.001 to 14.69.
Repealed Minnesota Rule: 24-05297
"Applicant" means an entity that is eligible under Minnesota Statutes, section 174.24, subdivision 2, for financial assistance for a new or existing public transit system.
"Cost reimbursement contract" means a contract providing for payment to the contractor of allowable costs incurred in the performance of the contract, to the extent prescribed in the contract.
"Financial assistance" means state funds paid to a recipient in accordance with the public transit participation program established under Minnesota Statutes, section 174.24.
"Greater Minnesota" has the meaning given in Minnesota Statutes, section 116O.02, subdivision 5.
"Local share" means the percentage of total operating costs paid by a recipient according to the distribution classifications in Minnesota Statutes, section 174.24, subdivision 3b, and the percentage of capital costs paid by a recipient according to part 8835.0320.
"Local source" has the meaning given it in Minnesota Statutes, section 174.24, subdivision 3b.
"Management plan" means a description of all the elements of a proposed public transit system, as required by part 8835.0260.
"Passenger trip" means a one-way movement of a person between two points. Each time a passenger boards a transit vehicle counts as one passenger trip.
"Public transit" or "transit" has the meaning given it in Minnesota Statutes, section 174.22, subdivision 7.
"Public transit participation program" means the department's program for providing financial assistance for public transit services in greater Minnesota under Minnesota Statutes, section 174.24.
"Reasonable cost" means a price for a commodity or service which, in its nature or amount, does not exceed that which would be incurred by an ordinarily prudent person in the conduct of competitive business.
This chapter is adopted pursuant to Minnesota Statutes, section 174.23, subdivisions 2 and 7.
The purpose of this chapter is to establish the procedures and standards for review and approval of applications for financial assistance under the public transit participation program in Minnesota Statutes, section 174.24, and to define "total operating cost" as the term is used in carrying out the public transit participation program.
This chapter applies to applicants for financial assistance under the public transit participation program established by Minnesota Statutes, section 174.24.
The Office of Transit shall administer the public transit participation program as provided by Minnesota Statutes, section 174.23, subdivision 8. The Office of Transit shall allocate:
operating assistance to public transit systems according to the distribution classifications in Minnesota Statutes, section 174.24, subdivision 3b; and
nonoperating or capital assistance to public transit systems according to the discretion provided to the commissioner by Minnesota Statutes, section 174.24, subdivision 3c, and according to part 8835.0320.
The Office of Transit shall make payments of financial assistance by a contract between the department and a recipient as required by Minnesota Statutes, section 174.24, subdivision 3.
An applicant may apply for financial assistance under the public transit participation program to provide public transit in greater Minnesota.
Public transit includes a single service or a combination of services, such as route deviations, fixed route, flexible fixed route, demand-response/dial-a-ride, rideshare, subscription, volunteer driver services, and other services that meet the needs of individual transit systems to the extent they are consistent with Minnesota Statutes, section 174.21. A public transit system must be available and accessible to the general public.
An applicant shall request financial assistance using an application prescribed by the department. The department shall establish a deadline for submission of applications for financial assistance and shall provide adequate notice of the deadline to applicants. A complete application contains a management plan, a resolution from the applicant's governing body, and other forms and certifications required by federal or state law or regulation.
In addition to submitting an application to the department, an applicant shall submit an application for review and approval as provided in Minnesota Statutes, section 174.23, subdivision 2.
An applicant shall submit a management plan as part of its application for financial assistance.
The management plan must include the following information:
a service plan that describes the levels of service to be provided during the contract period, including a discussion of service area and general population, type or types of service, vehicle descriptions, days and hours of service, service schedules, contract services, and route maps;
a financial plan, including:
actual statistics on operating expenses and operating revenues for the most recent calendar years;
anticipated statistics on operating expenses and operating revenues for the new contract period;
actual statistics on miles and hours of service and passenger trips for the most recent calendar year; and
anticipated statistics on miles and hours of service and passenger trips for the new contract period;
a capital plan that describes the major capital assets of the transit system with an outline of how they will be maintained, improved, or replaced;
a description of revenue-producing contracts relating to the transit services provided by or for the applicant;
a description of the participating public transit system's vehicle maintenance program for the period of financial assistance;
a description of the organizational structure established to direct, control, review, and implement the management plan;
a description of measurable goals and objectives for the transit system, illustrating the benefits expected to be realized by the investment of state financial assistance;
a listing of transit and paratransit systems and their union affiliations currently operating in the applicant's area, and a description of existing or potential coordination with these systems;
a description of the transit system's safety and training policies, including its driver selection process;
a copy of the transit system's most recent drug and alcohol policy as approved by the local recipient's governing body;
The department shall incorporate an approved management plan into the financial assistance contract between the department and the recipient, as provided in part 8835.0330. The department shall approve a management plan after it determines the financial assistance according to part 8835.0270.
A recipient shall include a copy of the third-party contract procurement policy of its governing body in the management plan required in part 8835.0260. A third-party contract for operating services must contain all relevant terms contained in the financial assistance contract between the recipient and the department. The recipient is responsible for third-party contractor compliance with local, state, and federal laws, rules, and regulations. A third-party contract must be available for audit according to part 8835.0350, subpart 3. Before a recipient awards a third-party contract for operating services, the department shall review the third-party contract for compliance with the terms of the financial assistance contract between the department and the recipient.
The department shall allocate financial assistance to recipients for purposes of the public transit participation program according to the following order of priority:
third priority: operating and capital costs for the provision of public transit services in a community or area not currently served by public transit.
To determine financial assistance, the department shall review an applicant's management plan and evaluate the proposed public transit system by considering:
the degree to which the proposed system meets the objectives of the public transit participation program;
the accessibility of the proposed system to the general public, including persons with disabilities;
the plan for coordination of transit services in the geographical area.
The department shall evaluate the budget, service delivery and design, and administration of a public transit system. The department shall compare the past performance of a transit system to its current performance and to the performance of other similar transit systems. To measure the performance of a public transit system, the department shall consider cost efficiency, cost-effectiveness, service effectiveness, and quality.
The department shall approve a management plan for incorporation into a financial assistance contract after determining the reasonable costs of the proposed public transit system.
In determining the total operating costs of a public transit system, upon which financial assistance is based, part 8835.0290 and the definitions of expense categories in part 8835.0280 apply and have the meanings given them.
"Total operating cost" means the categories of allowable expenses provided in subparts 2 to 7. The total operating cost is subject to the audit provisions of part 8835.0350, subpart 3.
The "personnel services" expense category includes:
administrative, management, and supervisory services, which are the amount paid to transit system employees classified as managers, supervisors, coordinators, or administrators and for which the amounts claimed by employees must be supported by daily time distribution records or a cost allocation plan that is supported by the applicant and approved by the department as part of the management plan;
operators' wages, which are the total amount paid to transit system employees classified as vehicle operators and for which the amounts claimed by employees must be supported by daily time distribution records;
maintenance and repair wages, which are the labor charges incurred in the performance of maintenance and repair of vehicles and other property required for the operation of the transit system, including only wages of maintenance personnel employed by the transit system, and for which the amounts claimed by employees must be supported by daily time distribution records;
other direct wages, which are the amount paid to transit system employees not classified as operators, maintenance, or administrative personnel, such as dispatchers, bookkeepers, clerical personnel, janitors, and security personnel, and for which the amounts claimed by employees must be supported by daily time distribution records;
indirect labor charges, which are the amount to be allocated to the transit contract for labor that is not traceable to a specific transit activity but which benefits the transit operation and which must be based on a cost allocation plan approved by the department; and
fringe benefits, which are the cost of providing fringe benefits for active and retired transit system employees, including pension benefits, vacation and sick leave benefits, social security taxes, workers' compensation insurance, unemployment insurance, life insurance, and first party medical coverage, and which may be allocated indirectly based on a cost allocation plan approved by the department.
The "administrative charges" expense category includes:
management fees, which are the amount paid for professional services provided by a management service company engaged contractually to provide operating management to the transit system;
tariffs and traffic expenses, which are any necessary tariff filing fees and costs for the procurement of tickets, tokens, and transfers;
advertising, marketing, and promotional charges, including the necessary cost of advertising and promoting the transit system;
legal, auditing, and other professional fees rendered by individuals or firms, other than transit system employees, for the purpose of maintaining continuing operations of the transit system, including:
attorney fees and expenses, court costs, witness fees, and fees for accounting and auditing services, such as accident claims, defending workers' compensation claims, or other items directly related to the management plan and approved by the department; and
fees paid for planning, engineering, or other consultant services that are directly related to the management plan approved by the department;
security costs, which are the costs necessary to provide armored car services, patrol services, and electronic surveillance for vehicles, stations, yards, and buildings to detect and prevent criminal activity, fires, and unsafe conditions, when the patrolling is performed by an outside security agency and not by transit system employees;
office supplies expense, which is the cost of office supplies and materials and printing and photocopying charges solely attributable to and necessary for the operation of the transit system;
lease and rental costs of administrative facilities used for performing the general administrative functions of the transit system, including leases and rentals of such items as land, buildings, office equipment, and furnishings;
utilities expense, which is the cost of utilities such as gas, electricity, water, telephone and other communications services, and trash collection;
other direct administrative charges, including administrative charges necessary for the continuing operation of the transit system, such as mileage reimbursement for transit support vehicles, approved conference fees, employee travel expenses, employee development, driver's training, approved membership fees for transit associations if the cost of membership is reasonably related to the value of the services or benefits received, and subscriptions to transit publications; and
indirect administrative charges, which are the amount allocated to the transit contract for administrative services not traceable to a specific transit activity but which benefit the transit operation and which must be based on a cost allocation plan approved by the department.
For purposes of item I, mileage reimbursement must be based on a rate approved by the local governing body, as long as the rate is reasonable and consistent with similar rates approved by the local governing body.
The "vehicle charges" expense category applies to vehicles owned or leased by the public transit system and includes:
fuel and lubricants expense, including net costs of gasoline, diesel, and alternative fuels and costs of antifreeze, propane, lubricating oil, transmission fluid, and grease used by revenue and service vehicles;
maintenance and repair material expense, including costs of parts, materials, and supplies used in the maintenance and repair of revenue and service equipment;
contract service maintenance labor expense, which is the cost of labor for maintenance and repair service provided by persons other than transit system employees;
tire expense, which is the cost of tires and tubes used on revenue and service equipment including the cost of recapping or regrooving and the rental costs for tires and tubes; and
other vehicle charges, including the costs of:
first aid equipment, fire extinguishers, and other emergency equipment required for vehicles; and
noncapitalized vehicle improvements that do not remake a vehicle or appreciably extend its useful life and that have received approval from the department.
The "operations charges" expense category includes:
purchase of service, which is the cost of having a subcontractor operate the project service, with cost established:
through competitive bidding procedures, except for those recipients covered under Minnesota Statutes, chapter 221;
through a negotiated contract with the prime contractor in bid situations when only one bid is received; or
depreciation, which is the amount of depreciation or use allowance on depreciable items such as structures, revenue equipment, service vehicles and equipment, and office furniture and equipment and is the amount allowed based on a company's existing depreciation schedule or, if a schedule does not already exist, a depreciation schedule submitted to and approved by the department, but which may not be charged for items purchased, totally or in part, with state or federal funds;
mileage reimbursement for passenger service, including the cost of volunteer driver reimbursement for projects incorporating this type of service, as well as mileage reimbursement for transit personnel using private vehicles for emergency replacement passenger transport in the event of mechanical breakdown of transit vehicles;
repair and maintenance of other property, including material costs associated with the upkeep and repair of buildings and stations, grounds, nonrevenue equipment owned or leased by the transit company, and miscellaneous expenses such as small tool replacement, and supplies used for cleaning and for general shop and garage purposes;
leases and rentals of facilities or equipment used in the operation of the transit system, including leases and rentals of garages, depots, passenger vehicles, service vehicles, passenger stations, communication equipment, and computers, with allowability based on the reasonableness of rates and the presence of evidence that the lease will not give rise to material equity in the property; and
other operations charges, including the cost of such things as the purchase or rental and cleaning of uniforms, tools and equipment, sanding and snowplow operations, passenger amenities, and station agents and which may be allocated indirectly based on a cost allocation plan approved by the department.
For purposes of item C, mileage reimbursement must be based on a rate approved by the local governing body, as long as the rate is reasonable and consistent with similar rates approved by the local governing body.
The "insurance charges" expense category includes:
public liability and property damage insurance expense on vehicles, including premiums paid to insure the transit system against loss through damage to its own property and to indemnify the transit system and all financial and operational participants against loss from liability for its acts that cause damage to the person or property of others; and
public liability and property damage insurance charges other than on vehicles, including excess liability insurance, baggage and express insurance, and fire and theft insurance.
In determining the total operating costs of a public transit system, upon which financial assistance is based, the definitions of unallowable expenses in subparts 2 to 8 apply and have the meanings given them.
Expenditures for general purpose equipment are unallowable as operating costs. "General purpose equipment" means equipment that is used for other than transit contract purposes, such as communications equipment, office equipment and furnishings, air conditioning equipment, reproduction and printing equipment, and computers and related equipment.
Interest on borrowing (however represented), bond discounts, cost of financing and refinancing operations, and legal and professional fees paid in connection with these costs are unallowable.
Costs resulting from violations of, or failure to comply with federal, state, or local laws and regulations are unallowable.
Contributions to a contingency reserve or any similar provision for unseen events are unallowable.
Any losses arising from uncollectible accounts, other claims, and related costs are unallowable.
Contributions and donations are unallowable as are any entertainment expenses.
Costs that are not directly related to the provision of public transit are unallowable.
In determining the local sources of funds that may comprise the fixed percentage of total operating costs to be paid by a recipient in accordance with the distribution classifications in Minnesota Statutes, sections 174.24, subdivision 3b, the definitions of revenue categories in subparts 2 to 7 apply and have the meanings given them.
"Passenger fare" means revenue earned from transporting passengers on the public transit system, including a cash fare, a donation received instead of a set fare, and an advance fare received from the sale of a coupon, token, or pass.
"Contract revenue" means revenue received from a contract with a beneficiary of a specific transit service. Contract revenue includes:
revenue earned for a ride given in regular transit service but paid for by an organization, including a state or local social service agency or a private social service organization, for the benefit of the rider.
"School revenue" means revenue earned from service provided under a contract with a school district, including an amount paid for transporting school children on regularly scheduled service, and an amount paid by a college or university for operating a transit vehicle on or between campuses.
"Charter revenue" includes reimbursement for charter service received in association with publicly funded transit service, providing that charter service rates are developed so that cost recovery equals or exceeds the full cost of providing the charter service.
"Auxiliary revenue" means revenue earned from an activity closely associated with the transit operation, including revenue received from an advertising service, delivery, a lease, and station and vehicle concessions.
"Other financial assistance" includes revenue earned from an activity not associated with the provision of the recipient's transit service but which is applied to help cover the system's costs, including tax levies, a federal cash grant, senior citizen fare assistance, investment income, and any general donation.
An applicant seeking financial assistance for capital costs shall include in its budget a description of the vehicle, facility, or equipment desired, its cost and the reason for the request.
The department shall use the following criteria to evaluate requests for capital assistance:
the extent to which the request maintains public transit services, promotes safety, and promotes efficient operations;
The department shall determine the amount of capital assistance for the public transit participation program according to the discretion provided to the commissioner in Minnesota Statutes, section 174.24, subdivision 3c. Except as provided in subparts 4 and 5, the department shall fund 80 percent of the capital costs approved by the department under the public transit participation program. The recipient shall provide the remaining 20 percent of the approved capital costs from local sources.
Under the discretion provided to the commissioner in Minnesota Statutes, section 174.24, subdivision 3c, the department may establish a capital assistance allocation formula that deviates from the formula established in subpart 3. In setting this formula, the department must consider all relevant conditions relating to funding the public transit participation program.
The department may deviate from the capital assistance allocation formula for an exceptional circumstance. A recipient that seeks capital assistance from the public transit participation program in an amount greater than the allocation formula, established under subpart 3 or 4, must make a written request to the department that includes:
a detailed description of the exceptional circumstance that is the basis of the written request; and
a resolution from the governing body that the request is due to an exceptional circumstance.
The department shall consider a request for an individual exception to the allocation formula after assessing the nature of the exceptional circumstance, balancing the request against other requests from recipients for capital assistance, and considering the assurance provided by the governing body that the circumstance that gave rise to the request is exceptional.
The department shall determine financial assistance to a public transit system to replace, refurbish, or dispose of a vehicle based on the condition of the vehicle and the availability of funds.
The financial assistance contract between the department and the recipient must specify the maximum amount of capital assistance to be allocated to the recipient and the terms and conditions of assistance. The department shall determine the actual amount of capital assistance based on the availability of funds.
The financial assistance contract is a cost reimbursement contract that is based on the total operating cost in part 8835.0280. The contract must specify the maximum amount of financial assistance to be awarded to the recipient by the department and state the terms and conditions of assistance. The management plan must be incorporated into the contract as a legal part of the contract document. A resolution by the governing body, as provided in part 8835.0250, subpart 5, must be included with the contract.
If a recipient fails to comply with the terms and conditions of the contract, the department may withhold payment at any time or may terminate the financial assistance contract upon 30 days' written notice.
A recipient or the department may initiate an amendment to the contract. Before implementation, an amendment must be fully executed by the parties to the original contract, or their successors.
A recipient and any third party contractor shall maintain their financial records in accordance with generally accepted accounting principles. The records must permit audit verification of transit cost allocations claimed during the contract period. The recipient and any third party contractor also shall keep records on miles and hours of service and passenger trips. Records must be kept available for a period of six years from the date of final payment or the expiration date of the contract, whichever occurs first.
The financial records of the recipient must be audited. They may be audited by the department or the department may accept all or part of the audit of an independent auditor instead of a departmental audit if the audit meets department standards. In addition to chapter 8835, department audits must be based on the contract cost principles and procedures in Code of Federal Regulations, title 48, chapter 1, part 31, and Office of Management and Budget Circular, Number A-87 and Number A-122, as amended. The financial records of a subcontractor may be audited at the department's discretion. The department shall submit year-end financial statements to the department auditor by April 15 of the year following the period covered by the financial assistance contract. Audits at the end of a contract period must establish approved total operating costs. New recipients are subject to a preaward audit before contract execution and fund encumbrance. As provided by Minnesota Statutes, section 16C.05, subdivision 5, the records, books, documents, and accounting practices of the recipient and of any third party contractor relating to the contract are subject to audit and examination by the department and the legislative auditor during working hours. If the department determines it has overpaid a recipient on a previous contract, the department may reduce payments under the current contract by the amount of overpayment.
The department shall use the management plan required under part 8835.0260 as a basis for monitoring and evaluating the performance of the public transit system during the contract period. Public transit policy decisions made by the recipient and actions taken during the contract period must conform with the management plan. A proposed deviation from the management plan must be reported to the department and approval secured in writing before implementation. Approval will be granted if it is clearly documented that the proposed deviation will not increase overall project costs. Failure to secure approval jeopardizes continued financial assistance.
If a public transit system generates operating revenue in excess of the recipient's local share amount, the recipient shall deposit the excess into a reserve account to be used for approved operating expenses that are not covered by the contract or for part of the local share of capital expenses of the transit system. The recipient shall report this revenue and expenses charged against it to the department on reporting forms provided by the department.