1.1 .................... moves to amend H.F. No. 605 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2008, section 161.53, is amended to read:
1.4161.53 RESEARCH ACTIVITIES.
1.5    (a) The commissioner may set aside in each fiscal year up to two percent of the
1.6total amount of all funds appropriated to the commissioner other than county state-aid
1.7and municipal state-aid highway funds for transportation research including public and
1.8private research partnerships. The commissioner shall spend this money for (1) research
1.9to improve the design, construction, maintenance, management, and environmental
1.10compatibility of transportation systems; (2) research on transportation policies that
1.11enhance energy efficiency and economic development; (3) programs for implementing
1.12and monitoring research results; and (4) development of transportation education and
1.13outreach activities. The commissioner shall give serious consideration to spending a
1.14portion of the funds under this section for ongoing research into and implementation
1.15of innovations in bridge-monitoring technology and bridge-inspection technology;
1.16bridge-inspection techniques and best practices; and, the cost-effectiveness of deferred
1.17or lower cost highway and bridge maintenance activities and its impacts on long-term
1.18trunk highway maintenance needs.
1.19(b) Of all funds appropriated to the commissioner other than state-aid funds, the
1.20commissioner shall spend at least 0.1 percent, but not exceeding $1,200,000 in any fiscal
1.21year, for research and related activities performed by the Center for Transportation Studies
1.22of the University of Minnesota. The center shall establish a technology transfer and
1.23training center for Minnesota transportation professionals.

1.24    Sec. 2. [162.175] HIGHWAY AND BRIDGE PROJECT PRIORITIZATION.
2.1(a) The commissioner shall annually ensure, before releasing county state-aid
2.2highway funds or municipal state-aid street funds under this chapter to a county or city
2.3for that year, that a road authority, including a statutory or home rule charter city, has
2.4submitted to the commissioner a highway and bridge project prioritization briefing. At a
2.5minimum, the briefing must:
2.6(1) summarize key priorities or strategic goals of the road authority in constructing,
2.7improving, and maintaining all highways under its jurisdiction;
2.8(2) identify criteria, including any performance targets or measures that the road
2.9authority uses to select highway projects;
2.10(3) outline the condition of (i) each fracture-critical bridge, including any plans for
2.11replacing or repairing the bridge, and (ii) any other bridges or highway segments under the
2.12jurisdiction of the road authority that pose significant safety concerns; and
2.13(4) itemize projects involving construction, maintenance, or improvement of
2.14highways that were partly or completely performed during the previous calendar year,
2.15which must include a description of the nature of the work performed and specification of
2.16the amount of state money spent for each project.
2.17(b) The commissioner may develop and distribute a standard form for counties and
2.18cities to utilize in submitting the information required under paragraph (a).
2.19(c) Annually by February 1, the commissioner shall submit a report electronically
2.20containing the briefings received under paragraph (a), and a list of any counties or cities
2.21that have not submitted the briefing, to the chairs and ranking minority members of the
2.22senate and house of representatives committees with jurisdiction over transportation
2.23policy and finance.
2.24(d) For purposes of this section a county is deemed to have jurisdiction over roads
2.25located within the county that are county highways; county state-aid highways; town
2.26roads and bridges; and streets, highways, and bridges located in cities having a population
2.27under 5,000.

2.28    Sec. 3. Minnesota Statutes 2008, section 165.03, is amended by adding a subdivision
2.29to read:
2.30    Subd. 8. Biennial report on bridge inspection quality assurance. By February
2.311 of each odd-numbered year, the commissioner shall submit a report electronically to
2.32the chairs and ranking minority members of the senate and house of representatives
2.33committees with jurisdiction over transportation policy and finance concerning quality
2.34assurance for bridge inspections. At a minimum, the report must:
3.1(1) summarize the bridge inspection quality assurance and quality control procedures
3.2used in Minnesota;
3.3(2) identify any substantive changes to quality assurance and quality control
3.4procedures made in the past two years;
3.5(3) provide a briefing on findings from bridge inspection quality reviews performed
3.6in the past two years;
3.7(4) summarize the results of any bridge inspection compliance review by the Federal
3.8Highway Administration; and
3.9(5) identify actions in response to the Federal Highway Administration compliance
3.10review taken by the department in order to reach full compliance.

3.11    Sec. 4. [167.60] DEBT-FINANCING MANAGEMENT POLICY.
3.12(a) By January 1, 2011, the commissioner shall develop a debt-financing
3.13management policy for trunk highway bonds, federal advanced construction funds,
3.14and other forms of highway financing based on debt or future repayment. The policy
3.15must be used by the department to guide decision making related to debt financing. The
3.16commissioner may update the policy as necessary. In developing and updating the policy,
3.17the commissioner shall consult with the commissioner of management and budget and
3.18the chairs and ranking minority members of the senate and house of representatives
3.19committees with jurisdiction over transportation finance.
3.20(b) The debt-financing management policy must address relevant financial issues,
3.21including but not limited to:
3.22(1) limits on cumulative amounts of debt for the trunk highway system from all
3.23state and federal sources;
3.24(2) eligibility of projects for debt-financing funds;
3.25(3) allocation and use of funds;
3.26(4) terms of debt service and methods of repayment;
3.27(5) management of trunk highway fund balance impacts; and
3.28(6) mitigation of risks from different forms of debt financing.
3.29(c) Upon creation or formal revision of the debt-financing management policy, the
3.30commissioner shall distribute electronic copies to the chairs and ranking minority members
3.31of the senate and house of representatives committees with jurisdiction over transportation
3.32finance, and as required for reports to the legislature under section 3.195, subdivision 1.

3.33    Sec. 5. Minnesota Statutes 2008, section 174.02, subdivision 1a, is amended to read:
4.1    Subd. 1a. Mission; efficiency; legislative report, recommendations. It is part
4.2of the department's mission that within the department's resources the commissioner
4.3shall endeavor to:
4.4    (1) prevent the waste or unnecessary spending of public money;
4.5    (2) use innovative fiscal and human resource practices to manage the state's
4.6resources and operate the department as efficiently as possible;
4.7    (3) minimize the degradation of air and water quality;
4.8    (4) coordinate the department's activities wherever appropriate with the activities
4.9of other governmental agencies;
4.10    (5) use technology where appropriate to increase agency productivity, improve
4.11customer service, increase public access to information about government, and increase
4.12public participation in the business of government;
4.13    (6) utilize constructive and cooperative labor-management practices to the extent
4.14otherwise required by chapters 43A and 179A;
4.15    (7) ensure that the safety, maintenance, and preservation of Minnesota's
4.16transportation infrastructure is a primary priority;
4.17(8) report to the legislature on the performance of agency operations and the
4.18accomplishment of agency goals in the agency's biennial budget according to section
4.1916A.10, subdivision 1 ; and
4.20    (8) (9) recommend to the legislature appropriate changes in law necessary to carry
4.21out the mission and improve the performance of the department.

4.22    Sec. 6. Minnesota Statutes 2008, section 174.02, subdivision 2, is amended to read:
4.23    Subd. 2. Unclassified positions. The commissioner may establish four positions
4.24in the unclassified service at the deputy and assistant commissioner, assistant to
4.25commissioner or personal secretary levels. No more than two of these positions shall
4.26be at the deputy commissioner level. One of the positions of commissioner or deputy
4.27commissioner must serve as the chief engineer and be licensed as a professional engineer
4.28under section 326.02.

4.29    Sec. 7. Minnesota Statutes 2008, section 174.02, is amended by adding a subdivision
4.30to read:
4.31    Subd. 8. Electronic reports. For any legislative report required to be submitted by
4.32the commissioner by law, in which the report may or must be submitted electronically, the
4.33commissioner shall meet the requirements under section 3.195, subdivision 1.

5.1    Sec. 8. Minnesota Statutes 2008, section 174.03, subdivision 1a, is amended to read:
5.2    Subd. 1a. Revision of state Statewide transportation plan; revision, performance
5.3targets. (a) The commissioner shall revise the state statewide transportation plan by
5.4January 1, 1996, January 1, 2000, and, if the requirements of clauses (1) and (2) have been
5.5met in the previous revision 2016, and by January 1 of every third even-numbered year
5.6six years thereafter. Before final adoption of a revised plan, the commissioner shall hold a
5.7hearing to receive public comment on the preliminary draft of the revised plan.
5.8The (b) Each revised state statewide transportation plan must:
5.9(1) incorporate the goals of the state transportation system in section 174.01; and
5.10(2) establish objectives, policies, and strategies for achieving those goals; and
5.11(3) identify performance targets for measuring progress and achievement of
5.12transportation system goals, objectives, or policies.
5.13(c) Performance targets must be based on objectively verifiable measures, including
5.14but not limited to: cost estimates of projects compared with actual costs; district-to-district
5.15comparisons; and the impact of capital investments on the achievement of the department's
5.16strategic objectives.
5.17(d) The commissioner shall include in the plan an analysis of each performance
5.18target that fails to meet the target outcome, as previously measured or as projected for
5.19future years. The analysis must include, but is not limited to:
5.20(1) a summary of previous year trend measurements;
5.21(2) a review of the failure or projected failure to meet the performance target; and
5.22(3) a timeline that contains an expected year for achievement of the target or an
5.23explanation of why the target is not expected to be achieved within the time frame of
5.24the statewide transportation plan.
5.25(e) By July 1, 2011, the commissioner shall prepare a supplement to the statewide
5.26transportation plan that meets the requirements of paragraph (b), clause (3), and
5.27paragraphs (c) and (d).
5.28EFFECTIVE DATE.This section is effective the day following final enactment.

5.29    Sec. 9. Minnesota Statutes 2008, section 174.03, subdivision 4, is amended to read:
5.30    Subd. 4. Other duties. The commissioner shall:
5.31(1) construct and maintain transportation facilities as authorized by law;
5.32(2) cooperate with, and may provide technical and financial assistance to, the
5.33Metropolitan Council and regional development commissions in the regional transportation
5.34planning process, in accordance with mutually acceptable terms and conditions;
6.1(3) cooperate with, and may provide planning and technical assistance upon the
6.2request of, any political subdivision or other governmental agency in accordance with
6.3mutually accepted terms and conditions, except as otherwise restricted by law; and
6.4(4) develop, revise, and monitor a statewide rail transportation plan as part of the
6.5statewide transportation planning process, including a study and evaluation of alternative
6.6methods for insuring adequate and economical transportation of agricultural commodities,
6.7supplies, and other goods to and from rural areas of the state. The plan shall include an
6.8analysis of rail lines in the state for the purpose of determining (i) eligibility of rail lines
6.9for assistance under federal and state rail assistance programs, (ii) eligibility of rail lines
6.10for inclusion in the state rail bank, and (iii) the actions required by the state to insure the
6.11continuation of rail service that meets essential state needs and objectives; and
6.12(5) appoint an employee to serve as controller to supervise financial management
6.13within the agency. The controller shall ensure the accuracy, thoroughness, and reliability
6.14of financial, asset management, and performance information generated by the department
6.15and reported to the legislature. The controller shall report annually, at a minimum, to
6.16the chairs and ranking minority members of the senate and house of representatives
6.17committees with jurisdiction over transportation policy and finance concerning agency
6.18productivity, progress toward performance-based agency budgeting, and agency efficiency.

6.19    Sec. 10. REPORT ON DEPARTMENT OF TRANSPORTATION
6.20MANAGEMENT CHANGES.
6.21(a) By February 1, 2011, the commissioner of transportation shall submit a report
6.22electronically to the chairs and ranking minority members of the senate and house of
6.23representatives committees with jurisdiction over transportation policy and finance
6.24concerning recent changes in the department's organizational structure, internal procedures
6.25and practices, and anticipated budget. The report must include, but is not limited to:
6.26(1) a summary and review of the department organizational structure for bridge
6.27management, maintenance, and inspections, including a brief explanation of any relevant
6.28structural or organizational changes made since August 1, 2007;
6.29(2) an analysis of the division of bridge-related duties and decision-making
6.30responsibilities between districts and central administration;
6.31(3) a summary of current agency procedures and processes, and any changes made
6.32since August 1, 2007, related to:
6.33(i) initiation of bridge re-rating and use of bridge inspection findings in the re-rating
6.34process;
7.1(ii) implementation of agencywide standards for documenting bridge inspection
7.2findings and decision making for postinspection bridge maintenance; and
7.3(iii) other changes designed to ensure or enhance the safety of Minnesota's
7.4transportation infrastructure; and
7.5(4) a budget analysis of anticipated funding and funding allocations for pavement
7.6preservation and highway maintenance, safety projects, mobility enhancement projects,
7.7and highway and bridge construction, for fiscal years 2012 through 2018, including a
7.8discussion of any anticipated budgetary challenges or risks.
7.9(b) In addition to an electronic report, the commissioner shall (1) prepare a summary
7.10of findings from the report, and (2) seek to distribute the findings and provide oral
7.11testimony to the senate and house of representatives committees with jurisdiction over
7.12transportation finance. The chairs of the senate and house of representatives committees
7.13with jurisdiction over transportation finance shall make every reasonable effort to arrange
7.14testimony from the department during the 2011 legislative session."
7.15Delete the title and insert:
7.17relating to transportation; modifying management, priorities, research, and
7.18planning provisions related to Department of Transportation; requiring reports;
7.19amending Minnesota Statutes 2008, sections 161.53; 165.03, by adding a
7.20subdivision; 174.02, subdivisions 1a, 2, by adding a subdivision; 174.03,
7.21subdivisions 1a, 4; proposing coding for new law in Minnesota Statutes, chapters
7.22162; 167."