1.1 	A bill for an act
1.2 	relating to transportation; amending formula requirements in allocating state aid 
1.3 	for town roads;amending Minnesota Statutes 2010, section 162.081, subdivision 
1.4 	4.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2010, section 162.081, subdivision 4, is amended to read:
1.7 		Subd. 4.Formula for distribution to towns; purposes. (a) Money apportioned to 
1.8 	a county from the town road account must be distributed to the treasurer of each town 
1.9 	within the county, according to a distribution formula adopted by the county board. 
1.10 	The formula must take into account each town's levy for road and bridge purposes, its 
1.11 	population and town road mileage, and other factors the county board deems advisable 
1.12 	in the interests of achieving equity among the towns. Distribution of town road funds 
1.13 	to each town treasurer must be made by March 1, annually, or within 30 days after 
1.14 	receipt of payment from the commissioner. Distribution of funds to town treasurers in a 
1.15 	county which has not adopted a distribution formula under this subdivision must be made 
1.16 	according to a formula prescribed by the commissioner by rule. A formula adopted by a 
1.17 	county board or by the commissioner must provide that a town, in order to be eligible for 
1.18 	distribution of funds from the town road account in a calendar year, must have levied for 
1.19 	taxes payable in the previous year for road and bridge purposes at least 0.04835 percent of 
1.20 	taxable market value. For purposes of this eligibility requirement, taxable market value 
1.21 	means taxable market value for taxes payable two years prior to the aid distribution year
1.22 	an amount equal to or greater than the amount distributed to that town from the town road 
1.23 	account under this section in the year prior to the previous year.
2.1 	(b) Money distributed to a town under this subdivision may be expended by the 
2.2 	town only for the construction, reconstruction, and gravel maintenance of town roads 
2.3 	within the town.