1.1 A bill for an act
1.2 relating to transportation;
modifying requirements related to construction impacts
1.3 on businesses; establishing a
local business construction impacts assistance
1.4 program;amending Minnesota
Statutes 2024, section 160.165; proposing coding
1.5 for new law in Minnesota
Statutes, chapter 160.
1.6 BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes
2024, section 160.165, is amended to read:
1.8 160.165 MITIGATING
TRANSPORTATION PROJECT IMPACTS ON
1.9 BUSINESS.
1.10 Subdivision
1.Definitions. (a) For the purposes of this section, the
following terms have
1.11 the meanings given:.
1.12 (b) "Business
impairment" has the meaning given in section 160.167, subdivision 1.
1.13 (1) (c)
"Project" means construction work to maintain, construct,
reconstruct, or improve
1.14 a street or highway or for a
rail transit project;.
1.15 (2) (d)
"Substantial business impacts" means business impairment of
road access, parking,
1.16 or visibility for one or
more business establishments as a result of a project, for a minimum
1.17 period of at least one
month; and.
1.18 (3) (e)
"Transportation authority" means the commissioner, as to trunk
highways; the
1.19 county board, as to county
state-aid highways and county highways; the town board, as to
1.20 town roads; statutory or home
rule charter cities, as to city streets; the Metropolitan Council,
1.21 for rail transit projects
located entirely within the metropolitan area as defined in section
1.22 473.121, subdivision 2; and the
commissioner, for all other rail transit projects.
2.1 Subd. 2.Business
liaison. (a) Before beginning construction work on a project, a
2.2 transportation authority shall
must identify whether the project is anticipated to include
2.3 substantial business impacts.
For such projects, the transportation authority shall must
2.4 designate an individual to
serve as business liaison between the transportation authority and
2.5 affected businesses.
2.6 (b) The business liaison shall
must consult with affected businesses before and during
2.7 construction to investigate
and recommend means of mitigating project impacts to businesses.
2.8 The mitigation considered
must include signage. The business liaison shall must provide
2.9 information to the identified
businesses before and during construction, concerning project
2.10 duration and timetables, lane
and road closures, detours, access impacts, customer parking
2.11 impacts, visibility, noise,
dust, vibration, and public participation opportunities.
2.12 Subd. 4.Construction
communication plan. (a) A transportation authority must
2.13 implement a construction
communication plan for each project in which a business liaison
2.14 is required under
subdivision 2. The transportation authority must develop the plan in
2.15 consultation with the
business liaison during project development.
2.16 (b) At a minimum, the
communication plan must include:
2.17 (1) identification of
methods to distribute project information;
2.18 (2) procedures to
distribute construction-related notices to affected businesses, tenants,
2.19 and other property
owners;
2.20 (3) development of
information on the project, including but not limited to the information
2.21 specified under
subdivision 2, paragraph (b), and, as appropriate, potential financial
assistance
2.22 under the local business
construction impacts assistance program under section 160.167;
2.23 and
2.24 (4) a schedule and
milestones for issuance of project updates, including but not limited
2.25 to immediately prior to
commencement of construction work and following any change in
2.26 the scheduled date of
substantial completion of the project.
2.27 EFFECTIVE DATE. This
section is effective the day following final enactment and
2.28 applies to projects in
which construction first commences on or after November 1, 2025.
2.29 Sec. 2. [160.167] LOCAL
BUSINESS CONSTRUCTION IMPACTS ASSISTANCE
2.30 PROGRAM.
2.31 Subdivision
1.Definitions. (a) For purposes of this section, the following
terms have
2.32 the meanings given.
3.1 (b) "Business
entity" includes but is not limited to an individual, partnership,
corporation,
3.2 joint venture,
association, or cooperative.
3.3 (c) "Business
impairment" means impairment to a business establishment or nonprofit
3.4 organization of at
least one of the following:
3.5 (1) access to a retail
location from:
3.6 (i) a project that is
on a road that abuts the location and includes partial or full closure
3.7 of the road within
1,000 feet of the location; or
3.8 (ii) more than one
simultaneous project on a road that abuts the location in which a
3.9 portion of each
project (A) is within two miles of the location, and (B) includes partial or
3.10 full closure of the
road; or
3.11 (2) visibility of the
primary identifying signage or entrance.
3.12 (d) "Covered
project" means a project to maintain, construct, reconstruct, or improve a
3.13 trunk highway within a
statutory or home rule charter city, a county state-aid highway, a
3.14 municipal state-aid
street, or a combination.
3.15 (e) "Extensive business
impacts" means business impairment as a result of a covered
3.16 project for a period of
at least 60 days.
3.17 (f) "Program"
means the local business construction impacts assistance program
3.18 established in this
section.
3.19 Subd. 2.Program
established. The commissioner must establish a program for financial
3.20 assistance to eligible
entities adversely impacted by street and highway construction activity
3.21 on covered projects.
3.22 Subd. 3.Administration.
The commissioner must establish program requirements,
3.23 including application
procedures that minimize applicant burdens, eligibility criteria subject
3.24 to the requirements
under subdivision 4, and procedures for distribution of financial
3.25 assistance. The commissioner
must implement the program to provide financial assistance
3.26 payments in a timely
manner that are, to the extent practicable, before or during the time
3.27 period of the extensive
business impacts.
3.28 Subd. 4.Eligibility.
An eligible recipient of financial assistance under the program is a
3.29 business entity
organized for profit or a nonprofit organization that:
3.30 (1) in the preceding
fiscal year, received at least 80 percent of its annual gross revenue
3.31 from sales or services
at retail locations;
3.32 (2) has no more than two
retail locations;
4.1 (3) has experienced or
is anticipated to experience extensive business impacts; and
4.2 (4) is headquartered
and located in Minnesota.
4.3 Subd.
5.Financial assistance; program allocation. (a) A road authority
that performs
4.4 a covered project with
extensive business impacts to one or more anticipated eligible entities
4.5 must allocate a
portion of project funds for financial assistance to be provided under the
4.6 program. As
applicable, a road authority must provide project and allocation information
4.7 to the commissioner in
the manner required by the commissioner.
4.8 (b) For each project,
the allocation equals one percent of the total project cost estimate
4.9 as calculated absent
the requirements under this section.
4.10 (c) For each project,
the contingent allocation equals one percent of the total project cost
4.11 estimate as calculated
absent the requirements under this section.
4.12 Subd. 6.Financial
assistance; distribution and payment. (a) Following application
4.13 and review of
eligibility and business impacts, the commissioner must identify award
4.14 recipients. From the
allocation specified under subdivision 5, paragraph (b), or paragraph
4.15 (c) as provided under
subdivision 7, the commissioner must determine a distribution amount
4.16 to each award recipient
and make financial assistance payments accordingly.
4.17 (b) The distribution
amount must:
4.18 (1) be allocated equally
among all recipients; and
4.19 (2) not exceed $30,000
for each recipient.
4.20 (c) Notwithstanding any
law to the contrary, funds available for the covered project are
4.21 available for the
commissioner to make financial assistance payments to award recipients
4.22 under the program.
4.23 Subd. 7.Financial
assistance; supplemental distribution. (a) Before commencing
4.24 construction work on a
covered project, the road authority must identify a milestone date
4.25 at which point all extensive
business impacts are scheduled to be substantially concluded
4.26 for the project. The
road authority may establish multiple milestone dates for different
4.27 projects or project
segments as appropriate.
4.28 (b) If extensive
business impacts are not substantially concluded within 60 days after a
4.29 milestone date under
paragraph (a), the commissioner must perform a supplemental
4.30 distribution of
financial assistance as provided under subdivision 6 using the contingent
4.31 allocation specified
under subdivision 5, paragraph (c).
5.1 Subd.
8.Application. The requirements under this section apply to a
covered project
5.2 in which construction
first commences on or after October 1, 2026.
5.3 EFFECTIVE DATE.
This section is effective the day following final enactment.
