SF4051

Purpose

To set how and when the costs to relocate utility facilities are paid when trunk highway construction requires those relocations. The bill directs that relocation costs be paid from the trunk highway fund by the transportation commissioner, within limits tied to federal reimbursement, and it applies to utilities owned by local governments or Minnesota tribal governments that use public highways for their facilities.

Main Provisions

• When the commissioner determines that relocating a utility facility is necessary for a project on routes of federally aided trunk highways (including urban extensions within the National System of Interstate Highways), the utility owner or operator must relocate the facility as ordered by the commissioner.
• The cost of relocation must be identified and paid from the trunk highway fund by the commissioner, provided the amount does not exceed the federal reimbursement basis used for the interstate highway system.
• For local units of government (as defined in the statute) or Minnesota tribal governments that own utilities providing light water, sanitary sewer, or storm sewer service and that use public highways for placing those facilities:
  • the remaining service life of the utility must be determined by the commissioner, and
  • relocation costs must be paid from the trunk highway fund whenever relocation is required by a trunk highway project.
• There are statutory exceptions mentioned in related sections (section 161.45, subdivision 6, paragraph d, or subdivision 7) that affect these payments.

Changes to Current Law

• The bill formalizes that relocation costs for utility facilities impacted by trunk highway projects will be paid from the trunk highway fund by the commissioner, within federal reimbursement limits.
• It adds a process to determine the remaining service life of affected utilities owned by local governments or tribes and ties funding of relocation to that determination.

Scope and Key Terms

• Applies to projects on routes of federally aided trunk highways, including urban extensions within the National System of Interstate Highways.
• Affects owners or operators of utility facilities and the local units of government or Minnesota tribal governments that own relevant utility systems (light water, sanitary sewer, storm sewer) using public highways.
• Key terms: trunk highway fund, relocation of facilities, utility facility, federally aided trunk highways, National System of Interstate Highways, commissioner, local unit of government, Minnesota Tribal government, remaining service life.

Practical Effect

• Local governments and tribes may receive state funding (from the trunk highway fund) to relocate utilities when trunk highway projects require it, subject to federal reimbursement limits.
• The transportation commissioner gains authority to order relocations and to determine the remaining service life of utilities for funding purposes.

Relevant Terms trunk highway fund; relocation of facilities; utility facility; federally aided trunk highways; National System of Interstate Highways; commissioner; local unit of government; Minnesota Tribal government; remaining service life; light water; sanitary sewer; storm sewer; federal reimbursement; section 161.45 subdivision 6(d); section 161.45 subdivision 7.