1.1                          A bill for an act 
  1.2             relating to transportation; creating local road 
  1.3             improvement program; proposing an amendment to the 
  1.4             Minnesota Constitution by adding a section to article 
  1.5             XIV to dedicate all proceeds from the sales tax on 
  1.6             motor vehicles to the highway user tax distribution 
  1.7             fund; appropriating money for greater Minnesota 
  1.8             transit; proposing coding for new law in Minnesota 
  1.9             Statutes, chapter 174.  
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  [174.52] [LOCAL ROAD IMPROVEMENT PROGRAM.] 
  1.12     Subdivision 1.  [LEGISLATIVE FINDINGS.] Local roadways that 
  1.13  serve as farm-to-market corridors, that serve as connections 
  1.14  between regional centers, and that support state investments in 
  1.15  the trunk highway system have a significant impact on the state 
  1.16  economy and warrant state support.  A new local road improvement 
  1.17  program is necessary to address deteriorating rural roadways and 
  1.18  increased traffic congestion in growing regional and 
  1.19  metropolitan areas. 
  1.20     Subd. 2.  [PROGRAM ESTABLISHED.] A local road improvement 
  1.21  program is established.  The commissioner shall administer the 
  1.22  program through the office within the department that 
  1.23  administers state aid for local transportation. 
  1.24     Subd. 3.  [FUND ESTABLISHED; APPROPRIATION; 
  1.25  ALLOCATIONS.] (a) The local road improvement fund is established 
  1.26  in the state treasury, consisting of money appropriated, 
  1.27  deposited, or credited to the fund by law or obtained with 
  2.1   general obligation bonds. 
  2.2      (b) Money in the fund is annually appropriated to the 
  2.3   commissioner and allocated proportionally to each area 
  2.4   transportation partnership in each of the department's 
  2.5   transportation districts based on the state-aid allocations to 
  2.6   the counties and cities within each transportation district.  
  2.7   Grants must be disbursed pursuant to determinations of each area 
  2.8   transportation partnership based on the eligibility requirements 
  2.9   and needs assessed pursuant to subdivisions 4 and 5. 
  2.10     Subd.  4.  [ELIGIBLE PROJECTS; GRANT CRITERIA.] (a) Each 
  2.11  area transportation partnership shall make grants to the road 
  2.12  authority of a county, statutory or home-rule charter city, or 
  2.13  town for the following categories of construction, 
  2.14  reconstruction, rehabilitation, or repair projects on local 
  2.15  roads, streets, and highways, including bridges: 
  2.16     (1) reconstruction of rural market arteries or 
  2.17  farm-to-market connections; 
  2.18     (2) reconstruction of local roads, streets, and highways to 
  2.19  add capacity or reduce traffic congestion; 
  2.20     (3) local road improvements related to or made necessary by 
  2.21  trunk highway construction or reconstruction projects; 
  2.22     (4) reconstruction, substantial rehabilitation, or 
  2.23  substantial repair necessary to address road failure or other 
  2.24  emergency or public safety concerns related to any local 
  2.25  roadway, as determined by the area transportation partnership; 
  2.26  and 
  2.27     (5) reconstruction, substantial rehabilitation, or 
  2.28  substantial repair necessary to remedy urgent economic concerns 
  2.29  related to any local roadway, as determined by the area 
  2.30  transportation partnership. 
  2.31     (b) Each area transportation partnership shall give 
  2.32  priority to grants to counties, cities, and towns: 
  2.33     (1) that levy or otherwise impose the highest tax rate for 
  2.34  roads and bridges compared to other communities in the highway 
  2.35  district; 
  2.36     (2) that have the lowest property valuations; 
  3.1      (3) proposing a project for a bridge, highway, street, or 
  3.2   road (i) that is not currently on the state-aid system and not 
  3.3   receiving state or federal funding, (ii) that has an average 
  3.4   daily traffic of at least 40 vehicles, and (iii) that is a 
  3.5   corridor or connection described in subdivision 1; and 
  3.6      (4) proposing a project that meets minimal state-aid 
  3.7   standards.  
  3.8      Subd. 5.  [APPLICATION.] (a) A local road authority may 
  3.9   apply to the commissioner for a grant from the local road 
  3.10  improvement fund for up to 80 percent of the cost of a project 
  3.11  on a street or highway in one or more of the categories in 
  3.12  subdivision 2. 
  3.13     (b) An application must be accompanied by a resolution of 
  3.14  the city's governing body, town board, or county board, as 
  3.15  applicable, (1) approving the project, (2) stating the duration 
  3.16  and date certain for completion of the project, (3) identifying 
  3.17  the project, and (4) providing an estimated cost of the project. 
  3.18     (c) An application must be accompanied by a certification 
  3.19  that the project is consistent with any applicable long-term 
  3.20  comprehensive land use and development plans and guides for the 
  3.21  area where the project is located. 
  3.22     (d) An application from a county or from a city with a 
  3.23  population of 5,000 or more must explain why the county's 
  3.24  allocation or city's allocation from the county state-aid 
  3.25  highway fund or municipal state-aid street fund, as applicable, 
  3.26  is insufficient to pay for the project.  An application for a 
  3.27  grant for a bridge construction or reconstruction project must 
  3.28  explain why the project has not been or will not be funded in 
  3.29  whole or in part from the proceeds of general obligation bonds 
  3.30  issued for construction and reconstruction of key bridges on 
  3.31  local road systems. 
  3.32     Sec. 2.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
  3.33     An amendment to the Minnesota Constitution, article XIV, is 
  3.34  proposed to the people.  If the amendment is adopted, a section 
  3.35  is added to article XIV, to read: 
  3.36     Sec. 12.  The proceeds from any tax on the sale of new and 
  4.1   used motor vehicles must be deposited in the highway user tax 
  4.2   distribution fund. 
  4.3      Sec. 3.  [SUBMISSION TO VOTERS.] 
  4.4      The proposed amendment must be submitted to the people at 
  4.5   the 2002 general election.  The question submitted must be: 
  4.6      "Shall the Minnesota Constitution be amended to require the 
  4.7   proceeds from the sales tax on motor vehicles be deposited in 
  4.8   the highway user tax distribution fund? 
  4.9                                      Yes .......
  4.10                                     No ........"
  4.11     Sec. 4.  [APPROPRIATION FOR GREATER MINNESOTA TRANSIT.] 
  4.12     $21,850,000 for fiscal year 2002 and $21,850,000 for fiscal 
  4.13  year 2003 are appropriated from the general fund to the 
  4.14  commissioner of transportation for greater Minnesota transit 
  4.15  assistance under Minnesota Statutes, section 174.24.