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Key: (1) language to be deleted (2) new language

                            CHAPTER 191-H.F.No. 1973 
                  An act relating to transportation; regulating state 
                  highways in municipalities; making conforming changes; 
                  amending Minnesota Statutes 2000, sections 160.85, 
                  subdivision 3; and 161.1245, subdivision 4; proposing 
                  coding for new law in Minnesota Statutes, chapter 161; 
                  repealing Minnesota Statutes 2000, sections 161.17; 
                  161.171; 161.172; 161.173; 161.174; 161.175; 161.176; 
                  161.177; and 473.181, subdivision 1. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                  HIGHWAY CONSTRUCTION THROUGH MUNICIPALITIES 
           Section 1.  Minnesota Statutes 2000, section 160.85, 
        subdivision 3, is amended to read: 
           Subd. 3.  [APPROVAL.] No road authority and private 
        operator may execute a development agreement without the 
        approval of the final agreement by the commissioner.  A road 
        authority and private operator in the metropolitan area must 
        obtain the approvals required in sections 161.171 to 161.177 
        161.162 to 161.167 and 473.167, subdivision 1.  Except as 
        otherwise provided in sections 161.162 to 161.167, the governing 
        body of a county or municipality through which a facility passes 
        may veto the project within 30 days of approval by the 
        commissioner. 
           Sec. 2.  Minnesota Statutes 2000, section 161.1245, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ROUTE NO. 396.] Notwithstanding section 161.17 
        or other any state law to the contrary, the commissioner of 
        transportation shall extend, without undue delay, the interstate 
        route commonly known as I-35 by construction of Route No. 396 
        described in section 161.12 in accordance with federal 
        regulations for receiving federal aid made available by the 
        United States to the state of Minnesota for highway purposes. 
           Sec. 3.  [161.162] [DEFINITIONS.] 
           Subdivision 1.  [APPLICABILITY.] The terms in sections 
        161.162 to 161.167 have the meanings given them in this section 
        and section 160.02. 
           Subd. 2.  [FINAL LAYOUT.] (a) "Final layout" means 
        geometric layouts and supplemental drawings that show the 
        location, character, dimensions, access, and explanatory 
        information about the highway construction or improvement work 
        being proposed.  "Final layout" includes, where applicable, 
        traffic lanes, shoulders, trails, intersections, signals, 
        bridges, approximate right-of-way limits, existing ground line 
        and proposed grade line of the highway, turn lanes, access 
        points and closures, sidewalks, speed zones, noise walls, 
        transit considerations, auxiliary lanes, interchange locations, 
        interchange types, sensitive areas, existing right-of-way, 
        traffic volume and turning movements, location of stormwater 
        drainage, location of municipal utilities, project schedule and 
        estimated cost, and the name of the project manager. 
           (b) "Final layout" does not include a cost participation 
        agreement.  For purposes of this subdivision "cost participation 
        agreement" means a document signed by the commissioner and the 
        governing body of a municipality that states the costs of a 
        highway construction project that will be paid by the 
        municipality. 
           Subd. 3.  [FINAL CONSTRUCTION PLAN.] "Final construction 
        plan" means the set of technical drawings for the construction 
        or improvement of a trunk highway provided to contractors for 
        bids. 
           Subd. 4.  [GOVERNING BODY.] "Governing body" means the 
        elected council of a municipality. 
           Subd. 5.  [MUNICIPALITY.] "Municipality" means a statutory 
        or home rule charter city. 
           Sec. 4.  [161.163] [HIGHWAY PROJECT REVIEW.] 
           Subdivision 1.  [PROJECTS REQUIRING REVIEW.] Sections 
        161.162 to 161.167 apply only to projects that alter access, 
        increase or reduce highway traffic capacity, or require 
        acquisition of permanent rights-of-way. 
           Subd. 2.  [TRAFFIC SAFETY MEASURES.] Nothing contained in 
        sections 161.162 to 161.167 limits the power of the commissioner 
        to regulate traffic or install traffic control devices or other 
        safety measures on trunk highways located within municipalities 
        regardless of their impact on access or traffic capacity or on 
        the need for additional right-of-way. 
           Subd. 3.  [CONSTRUCTION PROGRAM.] Nothing contained in 
        sections 161.162 to 161.167 limits the commissioner's discretion 
        to determine priority and programming of trunk highway projects. 
           Sec. 5.  [161.164] [FINAL LAYOUT APPROVAL PROCESS.] 
           Subdivision 1.  [SUBMISSION OF FINAL LAYOUT.] Before 
        proceeding with the construction, reconstruction, or improvement 
        of any route on the trunk highway system lying within any 
        municipality, the commissioner shall submit to its governing 
        body a final layout and project report covering the purpose, 
        route location, and proposed design of the highway.  The final 
        layout must be submitted as part of a report containing any 
        supporting data that the commissioner deems helpful to the 
        governing body in reviewing the final layout submitted.  The 
        supporting data must include a good faith cost estimate of all 
        the costs in which the governing body is expected to 
        participate.  The final layout must be submitted before final 
        decisions are reached so that meaningful early input can be 
        obtained from the municipality. 
           Subd. 2.  [GOVERNING BODY ACTION.] (a) Within 15 days of 
        receiving a final layout from the commissioner, the governing 
        body shall schedule a public hearing on the final layout.  The 
        governing body shall, within 60 days of receiving a final layout 
        from the commissioner, conduct a public hearing at which the 
        department of transportation shall present the final layout for 
        the project.  The governing body shall give at least 30 days' 
        notice of the public hearing.  
           (b) Within 90 days from the date of the public hearing, the 
        governing body shall approve or disapprove the final layout in 
        writing, as follows: 
           (1) If the governing body approves the final layout or does 
        not disapprove the final layout in writing within 90 days, in 
        which case the final layout is deemed to be approved, the 
        commissioner may continue the project development. 
           (2) If the final construction plans contain changes in 
        access, traffic capacity, or acquisition of permanent 
        right-of-way from the final layout approved by the governing 
        body, the commissioner shall resubmit the portion of the final 
        construction plans where changes were made to the governing body.
        The governing body must approve or disapprove the changes, in 
        writing, within 60 days from the date the commissioner submits 
        them. 
           (3) If the governing body disapproves the final layout, the 
        commissioner may make modifications requested by the 
        municipality, decide not to proceed with the project, or refer 
        the final layout to an appeal board.  The appeal board shall 
        consist of one member appointed by the commissioner, one member 
        appointed by the governing body, and a third member agreed upon 
        by both the commissioner and the governing body.  If the 
        commissioner and the governing body cannot agree upon the third 
        member, the chief justice of the supreme court shall appoint a 
        third member within 14 days of the request of the commissioner 
        to appoint the third member.  
           Subd. 3.  [APPEAL BOARD.] Within 30 days after referral of 
        the final layout, the appeal board shall hold a hearing at which 
        the commissioner and the governing body may present the case for 
        or against approval of the final layout referred.  Not later 
        than 60 days after the hearing, the appeal board shall recommend 
        approval, recommend approval with modifications, or recommend 
        disapproval of the final layout, making additional 
        recommendations consistent with state and federal requirements 
        as it deems appropriate.  It shall submit a written report 
        containing its findings and recommendations to the commissioner 
        and the governing body. 
           Sec. 6.  [161.165] [COMMISSIONER ACTION; INTERSTATE 
        HIGHWAYS.] 
           Subdivision 1.  [APPLICABILITY.] This section applies to 
        interstate highways. 
           Subd. 2.  [ACTION ON APPROVED FINAL LAYOUT.] (a) If the 
        appeal board recommends approval of the final layout or does not 
        submit its findings and recommendations within 60 days of the 
        hearing, in which case the final layout is deemed approved, the 
        commissioner may prepare substantially similar final 
        construction plans and proceed with the project.  
           (b) If the final construction plans change access, traffic 
        capacity, or acquisition of permanent right-of-way from the 
        final layout approved by the appeal board, the commissioner 
        shall submit the portion of the final construction plans that 
        shows the changes, to the governing body for its approval or 
        disapproval under section 161.164, subdivision 2. 
           Subd. 3.  [ACTION ON FINAL LAYOUT APPROVED WITH 
        CHANGES.] (a) If, within 60 days, the appeal board recommends 
        approval of the final layout with modifications, the 
        commissioner may: 
           (1) prepare final construction plans with the recommended 
        modifications, notify the governing body, and proceed with the 
        project; 
           (2) decide not to proceed with the project; or 
           (3) prepare final construction plans substantially similar 
        to the final layout referred to the appeal board, and proceed 
        with the project.  The commissioner shall, before proceeding 
        with the project, file a written report with the governing body 
        and the appeal board stating fully the reasons for doing so. 
           (b) If the final construction plans contain changes in 
        access or traffic capacity or require additional acquisition of 
        permanent right-of-way from the final layout reviewed by the 
        appeal board or the governing body, the commissioner shall 
        resubmit the portion of the final construction plans that shows 
        the changes, to the governing body for its approval or 
        disapproval under section 161.164, subdivision 2. 
           Subd. 4.  [ACTION ON DISAPPROVED FINAL LAYOUT.] (a) If, 
        within 60 days, the appeal board recommends disapproval of the 
        final layout, the commissioner may either: 
           (1) decide not to proceed with the project; or 
           (2) prepare final construction plans substantially similar 
        to the final layout referred to the appeal board, notify the 
        governing body and the appeal board, and proceed with the 
        project.  Before proceeding with the project, the commissioner 
        shall file a written report with the governing body and the 
        appeal board stating fully the reasons for doing so. 
           (b) If the final construction plans contain changes in 
        access or traffic capacity or require additional acquisition of 
        permanent right-of-way from the final layout reviewed by the 
        appeal board or the governing body, the commissioner shall 
        resubmit the portion of the final construction plans that shows 
        the changes, to the governing body for its approval or 
        disapproval under section 161.164, subdivision 2. 
           Subd. 5.  [FINAL CONSTRUCTION PLANS ISSUED.] The 
        commissioner shall send a complete set of final construction 
        plans to the municipality at least 45 days before the bid 
        opening for informational purposes. 
           Sec. 7.  [161.166] [COMMISSIONER ACTION; OTHER HIGHWAYS.] 
           Subdivision 1.  [APPLICABILITY.] This section applies to 
        trunk highways that are not interstate highways.  
           Subd. 2.  [ACTION ON APPROVED FINAL LAYOUT.] If the appeal 
        board recommends approval of the final layout or does not submit 
        its findings or recommendations within 60 days of the hearing, 
        in which case the the final layout is deemed approved, the 
        commissioner may prepare substantially similar final 
        construction plans and proceed with the project.  If the final 
        construction plans change access or traffic capacity or require 
        additional acquisition of right-of-way from the final layout 
        approved by the appeal board, the commissioner shall submit the 
        portion of the final construction plan that shows the changes, 
        to the governing body for its approval or disapproval under 
        section 161.164, subdivision 2. 
           Subd. 3.  [ACTION ON FINAL LAYOUT APPROVED WITH 
        CHANGES.] (a) If the appeal board approves the final layout with 
        modifications, the commissioner may: 
           (1) prepare final construction plans including the 
        modifications, notify the governing body, and proceed with the 
        project; 
           (2) decide not to proceed with the project; or 
           (3) prepare a new final layout and resubmit it to the 
        governing body for approval or disapproval under section 
        161.164, subdivision 2. 
           (b) If the final construction plans contain changes in 
        access or traffic capacity or require additional acquisition of 
        permanent right-of-way from the final layout reviewed by the 
        appeal board or the governing body, the commissioner shall 
        resubmit the portion of the final construction plans that shows 
        the changes, to the governing body for its approval or 
        disapproval under section 161.164, subdivision 2. 
           Subd. 4.  [ACTION ON DISAPPROVED FINAL LAYOUT.] If the 
        appeal board disapproves the final layout, the commissioner may: 
           (1) decide not to proceed with the project; or 
           (2) prepare a new final layout and submit it to the 
        governing body for approval or disapproval under section 
        161.164, subdivision 2. 
           Subd. 5.  [FINAL CONSTRUCTION PLANS ISSUED.] The 
        commissioner shall send a complete set of final construction 
        plans to the municipality at least 45 days before the bid 
        opening for informational purposes. 
           Sec. 8.  [161.167] [REIMBURSEMENT OF EXPENSES.] 
           Members of the appeal board shall submit to the 
        commissioner an itemized list of the expenses incurred in 
        disposing of matters presented to them.  The appeal board 
        members shall be reimbursed for all reasonable expenses incurred 
        by them in the performance of their duties.  The commissioner 
        shall pay these costs out of the trunk highway fund. 
           Sec. 9.  [REPEALER.] 
           Minnesota Statutes 2000, sections 161.17; 161.171; 161.172; 
        161.173; 161.174; 161.175; 161.176; 161.177; and 473.181, 
        subdivision 1, are repealed. 
           Sec. 10.  [EFFECTIVE DATE.] 
           This act is effective the day following final enactment and 
        applies to highway construction projects for which municipal 
        approval is first sought after that date. 
           Presented to the governor May 23, 2001 
           Signed by the governor May 24, 2001, 2:02 p.m.

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Revisor of Statutes