Purpose

• The bill aims to ensure highway funding is used only for highway-related purposes by preventing the governor’s budget from including expenditures from the trunk highway fund or the highway user tax distribution fund for nonhighway uses, in line with the Minnesota Constitution.

Main Provisions

• Prohibition in budget: Agencies must not include in a biennial budget any expenditures from the trunk highway fund or the highway user tax distribution fund for a nonhighway purpose or for any purpose prohibited by section 161045.
• Post-budget reporting requirement: No later than 45 days after the governor submits the biennial budget, the commissioner of management and budget and the attorney general must jointly submit a report to the chairs and ranking minority members of the legislative committees that handle transportation policy and finance.
• Contents of the report:
  • Examine proposed appropriations from the trunk highway fund and the highway user tax distribution fund.
  • Explain the highway purpose of each proposed appropriation.
  • Determine if any proposed appropriation is for a nonhighway purpose.
  • If a nonhighway purpose exists, recommend which fund should be used for that purpose.
• Definition of nonhighway purpose: Any appropriation not for construction, improvement, or maintenance of highways, or for any purpose prohibited by section 161045.
• Codification: The bill intends to propose coding for these provisions into Minnesota Statutes chapter 161.

Significance and Effects

• Strengthens alignment of highway funding with constitutionally authorized highway purposes.
• Introduces a formal, post-budget review process to identify and quarantine nonhighway uses of highway funds.
• Increases legislative oversight by requiring a dedicated report to key transportation committees.

Timeline and Process

• 45-day deadline after the governor’s biennial budget submission to produce the required report.
• The report is produced by the commissioner of management and budget and the attorney general and reviewed by relevant legislative chairs and ranking minority members.

How it Changes Existing Law

• Adds a clear prohibition on including highway funds for nonhighway purposes in the governor’s budget.
• Establishes a mandatory post-budget reporting requirement with specific evaluation steps and a defined definition of nonhighway purpose.
• Introduces a mechanism to determine and document the appropriate fund for any nonhighway use.

Relevant Terms - trunk highway fund - highway user tax distribution fund - nonhighway purpose - highway purpose report - Minnesota Constitution article XIV - Minnesota Statutes chapter 161 - section 161045 - biennial budget - governor’s biennial budget - section 16A11 - commissioner of management and budget - attorney general - chairs and ranking minority members - legislative committees with jurisdiction over transportation policy and finance - construction, improvement, maintenance of highways - prohibition on nonhighway uses of highway funds