Purpose

This bill creates a new rule for how costs are shared on trunk highway projects. It codifies that local governments cannot be required to pay for certain project costs that happen inside the trunk highway right-of-way and are caused by the project (such as moving utilities). It applies to all trunk highway projects no matter who owns the facility and regardless of whether the costs provide benefits beyond the trunk highway system. It also directs that money from sources other than the trunk highway fund may be identified to cover these costs. The bill also notes an exception for costs that arise from an agreement between the state and a local unit of government for work beyond the project’s designed scope.

Main provisions

• Subdivision 1 – Cost participation limitations:

  • The commissioner’s cost participation policies and procedures for trunk highway projects must not require or obligate a local unit of government to pay for any portion of project costs that are incurred within a trunk highway right-of-way and are necessitated by the project.
  • The types of costs covered include, but are not limited to, utility relocation.
  • These rules apply regardless of facility ownership, and regardless of whether the cost is for a nontrunk highway purpose or whether the project provides nontrunk highway system benefits.
  • The commissioner must identify nontrunk highway fund sources as needed.

• Subdivision 2 – Application:

  • The requirements in subdivision 1 do not apply to costs that result from an agreement between the commissioner and the local unit of government for work in addition to the project design or scope. This includes situations described in section 161.38 subdivisions 1 and 2.

Significant changes to existing law

• The bill restricts local governments from bearing certain trunk highway project costs incurred within the right-of-way, shifting those costs away from local entities.
• It expands the scope of cost-sharing rules to apply regardless of who owns the facility or whether the costs are tied to nontrunk highway purposes or benefits.
• It requires identifying alternative funding sources (nontrunk highway fund sources) to cover these costs.
• It creates a clear exception for extra work that is beyond the original project design or scope, as outlined in the referenced section.

Terminology and definitions (key terms carried through the bill)

• trunk highway
• right-of-way
• cost participation
• local unit of government
• project costs
• utility relocation
• nontrunk highway fund sources
• facility ownership
• project design or scope
• section 161.38 (related provisions)

Relevant Terms

• trunk highway
• right-of-way
• cost participation
• local unit of government
• project costs
• utility relocation
• nontrunk highway fund sources
• facility ownership
• project design or scope
• section 161.38