HF 2316

as introduced - 90th Legislature (2017 - 2018) Posted on 03/09/2017 09:16am

A bill for an act
relating to transportation; modifying provisions governing transportation policy
and finance; amending a fee; establishing an account; appropriating money;
authorizing the sale and issuance of state bonds; amending Minnesota Statutes
2016, sections 161.088, subdivision 5; 174.03, subdivisions 1a, 1c; 174.50,
subdivision 5, by adding a subdivision; Laws 2015, chapter 75, article 1, section
3, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin GENERAL FUND APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Corridors of commerce. new text end

new text begin $60,000,000 in fiscal year 2018 is appropriated
from the general fund to the commissioner of transportation for property acquisition on
trunk highway projects included in the corridors of commerce program under Minnesota
Statutes, section 161.088. Notwithstanding Minnesota Statutes, section 16A.28, this
appropriation is available for five years after the year of appropriation. This is a onetime
appropriation.
new text end

new text begin Subd. 2. new text end

new text begin Small cities assistance. new text end

new text begin $25,000,000 in fiscal year 2018 and $25,000,000 in
fiscal year 2019 are appropriated from the general fund to the commissioner of transportation
for the small cities assistance program under Minnesota Statutes, section 162.145.
new text end

new text begin Subd. 3. new text end

new text begin Town roads and bridges. new text end

new text begin $12,500,000 in fiscal year 2018 and $12,500,000
in fiscal year 2019 are appropriated from the general fund to the commissioner of
transportation for town roads and bridges. Of the appropriation in each year, the
commissioner must apportion and distribute:
new text end

new text begin (1) 65 percent in the manner provided for the town road account under Minnesota
Statutes, section 162.081; and
new text end

new text begin (2) 35 percent in the manner provided for the town bridge account under Minnesota
Statutes, section 161.082, subdivision 2a.
new text end

Sec. 2.

Laws 2015, chapter 75, article 1, section 3, subdivision 3, is amended to read:

Subd. 3. State Roads

(a) Operations and Maintenance

288,405,000

290,916,000

The base appropriation in fiscal year 2018 is
$292,140,000 and in fiscal year 2019 is
$301,545,000.

(b) Program Planning and Delivery

237,529,000

231,252,000

$130,000 in each year is available for
administrative costs of the targeted group
business program.

$266,000 in each year is available for grants
to metropolitan planning organizations outside
the seven-county metropolitan area.

$900,000 in each year is available for grants
for transportation studies outside the
metropolitan area to identify critical concerns,
problems, and issues. These grants are
available: (1) to regional development
commissions; (2) in regions where no regional
development commission is functioning, to
joint powers boards established under
agreement of two or more political
subdivisions in the region to exercise the
planning functions of a regional development
commission; and (3) in regions where no
regional development commission or joint
powers board is functioning, to the
department's district office for that region.

$1,000,000 in each year is available for
management of contaminated and regulated
material on property owned by the Department
of Transportation, including mitigation of
property conveyances, facility acquisition or
expansion, chemical release at maintenance
facilities, and spills on the trunk highway
system where there is no known responsible
party. If the appropriation for either year is
insufficient, the appropriation for the other
year is available for it.

$6,804,000 in the first year and $1,000,000 in
the second year are available for the purposes
stated in Minnesota Statutes, section 12A.16,
subdivision 2.

The base appropriation for program planning
and delivery in fiscal year 2018 is
$227,004,000 and in fiscal year 2019 is
$234,331,000.

(c) State Road Construction

779,664,000

deleted text begin 744,166,000 deleted text end new text begin 849,166,000 new text end

This appropriation is for the actual
construction, reconstruction, and improvement
of trunk highways, including design-build
contracts, internal department costs associated
with delivering the construction program, and
consultant usage to support these activities.
This includes the cost of actual payment to
landowners for lands acquired for highway
rights-of-way, payment to lessees, interest
subsidies, and relocation expenses.

new text begin This appropriation includes federal highway
aid.
new text end

$1,000,000 in the first year is to complete
projects using funds made available to the
commissioner of transportation under title XII
of the American Recovery and Reinvestment
Act of 2009, Public Law 111-5, and
implemented under Minnesota Statutes,
section 161.36, subdivision 7.

$10,000,000 in each year is for the
transportation economic development program
under Minnesota Statutes, section 174.12.

The commissioner may expend up to one-half
of one percent of the federal appropriations
under this paragraph as grants to opportunity
industrialization centers and other nonprofit
job training centers for job training programs
related to highway construction.

The commissioner may transfer up to
$15,000,000 each year to the transportation
revolving loan fund.

The commissioner may receive money
covering other shares of the cost of partnership
projects. These receipts are appropriated to
the commissioner for these projects.

The base appropriation for state road
construction in each of fiscal years 2018 and
2019 is $695,800,000.

(d) Highway Debt Service

197,381,000

231,199,000

$187,881,000 the first year and $221,699,000
the second year are for transfer to the state
bond fund. If this appropriation is insufficient
to make all transfers required in the year for
which it is made, the commissioner of
management and budget shall transfer the
deficiency amount under the statutory open
appropriation, and notify the chairs and
ranking minority members of the legislative
committees with jurisdiction over
transportation finance and the chairs of the
senate Committee on Finance and the house
of representatives Committee on Ways and
Means of the amount of the deficiency. Any
excess appropriation cancels to the trunk
highway fund.

(e) Statewide Radio Communications

5,358,000

5,486,000

Appropriations by Fund
	2016	2017
General	35,000	3,000
Trunk Highway	5,323,000	5,483,000

$3,000 in each year is from the general fund
to equip and operate the Roosevelt signal
tower for Lake of the Woods weather
broadcasting.

$32,000 in the first year is from the general
fund for a weather transmitter in Lake of the
Woods County.

The base appropriation from the trunk
highway fund in fiscal year 2018 is $5,645,000
and in fiscal year 2019 is $5,826,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 2

TRANSPORTATION BONDING

Section 1. new text begin BONDS; APPROPRIATION AND BOND SALE AUTHORIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation; corridors of commerce program. new text end

new text begin (a) $1,600,000,000
is appropriated from the bond proceeds account in the trunk highway fund to the
commissioner of transportation for the corridors of commerce program under Minnesota
Statutes, section 161.088. Of this appropriation, $200,000,000 is available in each of fiscal
years 2018 to 2025.
new text end

new text begin (b) The appropriations in this subdivision cancel as specified under Minnesota Statutes,
section 16A.642, except that the commissioner of management and budget must count the
date issuance of state bonds is authorized as the first day of the fiscal year during which the
bonds are available to be issued.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation; rail grade separation on crude oil rail corridors. new text end

new text begin $57,024,000
is appropriated from the bond proceeds fund to design and construct rail safety projects at
highway railroad grade crossings in accordance with Minnesota Statutes, section 219.016.
Of this appropriation:
new text end

new text begin (1) $42,262,000 is for a grant to the city of Moorhead for environmental analysis, design,
engineering, removal of an existing structure, and construction of a rail grade crossing
separation in the vicinity of 21st Street South; and
new text end

new text begin (2) $14,762,000 is for a grant to the city of Red Wing for environmental analysis, design,
engineering, removal of an existing structure, and construction of a rail grade crossing
separation at Sturgeon Lake Road.
new text end

new text begin Subd. 3. new text end

new text begin Bond sale. new text end

new text begin (a) To provide the money appropriated in subdivision 1 from the
bond proceeds account in the trunk highway fund, the commissioner of management and
budget shall sell and issue bonds of the state in an amount up to $1,600,000,000 in the
manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections
167.50 to 167.52, and by the Minnesota Constitution, article XIV, section 11, at the times
and in the amounts requested by the commissioner of transportation. The proceeds of the
bonds, except accrued interest and any premium received from the sale of the bonds, must
be deposited in the bond proceeds account in the trunk highway fund.
new text end

new text begin (b) To provide the money appropriated in subdivision 2 from the bond proceeds fund,
the commissioner of management and budget shall sell and issue bonds of the state in an
amount up to $57,024,000 in the manner, upon the terms, and with the effect prescribed by
Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article
XI, sections 4 to 7.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 3

TRANSPORTATION FINANCE AND POLICY

Section 1.

Minnesota Statutes 2016, section 161.088, subdivision 5, is amended to read:

Subd. 5.

Project selection process; criteria.

(a) The commissioner shall establish a
process for identification, evaluation, and selection of projects under the program.

(b) As part of the project selection process, the commissioner shall annually accept
recommendations on candidate projects from area transportation partnerships and other
interested stakeholders in each Department of Transportation district. For each candidate
project identified under this paragraph, the commissioner shall determine eligibility, classify,
and if appropriate, evaluate the project for the program.

(c) new text begin The commissioner must ensure the project selection process provides a balance of
projects throughout the state, including with respect to the number of projects and the amount
of program funding between the Department of Transportation metropolitan district and
greater Minnesota districts.
new text end

new text begin (d) new text end Project evaluation and prioritization must be performed on the basis of objective
criteria, which must include:

(1) a return on investment measure that provides for comparison across eligible projects;

(2) measurable impacts on commerce and economic competitiveness;

(3) efficiency in the movement of freight, including but not limited to:

(i) measures of annual average daily traffic and commercial vehicle miles traveled, which
may include data near the project location on that trunk highway or on connecting trunk
and local highways; and

(ii) measures of congestion or travel time reliability, which may be within or near the
project limits, or both;

(4) improvements to traffic safety;

(5) connections to regional trade centers, local highway systems, and other transportation
modes;

(6) the extent to which the project addresses multiple transportation system policy
objectives and principles; and

(7) support and consensus for the project among members of the surrounding community.

deleted text begin (d) deleted text end new text begin (e) new text end As part of the project selection process, the commissioner may divide funding to
be separately available among projects within each classification under subdivision 3, and
may apply separate or modified criteria among those projects falling within each
classification.

Sec. 2.

Minnesota Statutes 2016, section 174.03, subdivision 1a, is amended to read:

Subd. 1a.

Revision of statewide multimodal transportation plan.

(a) The commissioner
shall revise the statewide multimodal transportation plan by January 15, 2013, and by January
15 of every four years thereafter. Before final adoption of a revised plan, the commissioner
shall hold a hearing to receive public comment on the preliminary draft of the revised plan.

(b) Each revised statewide multimodal transportation plan must:

(1) incorporate the goals of the state transportation system in section 174.01;

(2) establish objectives, policies, and strategies for achieving those goals; deleted text begin and
deleted text end

(3) new text begin establish objectives and policies that provide for trunk highway system capacity
expansion in greater Minnesota; and
new text end

new text begin (4) new text end identify performance targets for measuring progress and achievement of transportation
system goals, objectives, or policies.

Sec. 3.

Minnesota Statutes 2016, section 174.03, subdivision 1c, is amended to read:

Subd. 1c.

Statewide highway deleted text begin 20-year capital deleted text end investment deleted text begin plan deleted text end new text begin plans new text end .

deleted text begin By January 15,
2013, and deleted text end new text begin (a) new text end In conjunction with each deleted text begin future deleted text end revision of the statewide multimodal
transportation plan, the commissioner deleted text begin shall deleted text end new text begin must new text end prepare a 20-year statewide highway deleted text begin capital deleted text end
investment plan that:

(1) incorporates performance measures and targets for assessing progress and achievement
of new text begin : (i) new text end the state's transportation goals, objectives, and policies identified in this chapter for
the state trunk highway system deleted text begin , deleted text end new text begin ; new text end and new text begin (ii) new text end those goals, objectives, and policies established in
the statewide multimodal transportation plan new text begin , including objectives and policies established
under subdivision 1a, paragraph (b), clause (3) new text end . Performance targets must be based on
objectively verifiable measures, and address, at a minimum, preservation and maintenance
of the structural condition of state highway bridges and pavements, safety, and mobility;

(2) summarizes trends and impacts for each performance target over the past five years;

(3) summarizes the amount and analyzes the impact of the department's capital
investments and priorities over the past five years on each performance target, including a
comparison of prior plan projected costs with actual costs;

(4) identifies the investments required to meet the established performance targets over
the next 20-year period;

(5) projects available state and federal funding over the 20-year period, including any
unique, competitive, time-limited, or focused funding opportunities;

(6) identifies strategies to ensure the most efficient use of existing transportation
infrastructure, and to maximize the performance benefits of projected available funding;

(7) establishes investment priorities for projected funding, including a schedule of major
projects or improvement programs for the 20-year period together with projected costs and
impact on performance targets; and

(8) identifies those performance targets identified under clause (1) not expected to meet
the target outcome over the 20-year period together with alternative strategies that could
be implemented to meet the targets.

new text begin (b) A 10-year capital highway investment plan created by the commissioner must include
objectives and policies established under subdivision 1a, paragraph (b), clause (3).
new text end

Sec. 4.

Minnesota Statutes 2016, section 174.50, subdivision 5, is amended to read:

Subd. 5.

Certification and disbursal for project of political subdivision.

Before
disbursement of an appropriation made from the fund to the commissioner of transportation
for grants to subdivisions of the state, the commissioner shall certify new text begin that new text end :

(1) deleted text begin that the project for which the grant is made has been reviewed as provided in
subdivision 4;
deleted text end

deleted text begin (2) that deleted text end the project conforms to the program authorized by the appropriation law and
rules adopted by the Department of Transportation consistent therewith; and

deleted text begin (3) that deleted text end new text begin (2) new text end the financing of any estimated cost of the project in excess of the amount of
the grant is assured by the appropriation of the proceeds of bonds or other funds of the
subdivision, or by a grant from an agency of the federal government, within the amount of
funds then appropriated to that agency and allocated by it to projects within the state, and
by an irrevocable undertaking, in a resolution of the governing body of the subdivision, to
use all funds so made available exclusively for the project, and to pay any additional amount
by which the cost exceeds the estimate through appropriation to the construction fund of
additional funds or the proceeds of additional bonds to be issued by the subdivision.

Sec. 5.

Minnesota Statutes 2016, section 174.50, is amended by adding a subdivision to
read:

new text begin Subd. 6d. new text end

new text begin Greater Minnesota smaller bridges. new text end

new text begin (a) The commissioner may make a
grant to any political subdivision to replace or rehabilitate a bridge in the department's
greater Minnesota districts.
new text end

new text begin (b) To be eligible for a grant under this subdivision, the project must have a total project
cost estimate that does not exceed $3,000,000. Grants may be used as specified under
subdivision 6b, paragraph (c).
new text end

new text begin (c) Grants under this subdivision are subject to the procedures and criteria established
under subdivisions 5, 6, and 7.
new text end