Requirements governing transit planning, project development, performance, and related transit-oriented development, including to establish performance measures, require a transit system investment framework, limit certain highway projects, and establish zoning requirements modified; and reallocation of funds provided.

A bill for an act

relating to transportation; modifying certain requirements governing transit

planning, project development, performance, and related transit-oriented

development, including to establish performance measures, require a transit system

investment framework, limit certain highway projects, and establish zoning

requirements; providing for certain reallocations of funds; requiring a report;

amending Minnesota Statutes 2024, sections 473.121, by adding a subdivision;

473.146, subdivision 3; 473.1466; 473.371, by adding a subdivision; 473.405,

subdivision 3; 473.852, by adding a subdivision; proposing coding for new law

in Minnesota Statutes, chapter 473.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 473.121, is amended by adding a subdivision

to read:

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Subd. 37.

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High frequency service.

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"High frequency service" means regular route transit

in which transit vehicle departures and subsequent vehicle arrivals at a transit stop or station

for each route are scheduled to meet:

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(1) on weekdays, service intervals of ten minutes or less over a period of at least 12

hours;

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(2) on weekends, service intervals of 15 minutes or less over a period of at least 12 hours;

and

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(3) daily between 9:00 p.m. and midnight, service intervals of 15 minutes or less.

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Sec. 2.

Minnesota Statutes 2024, section 473.146, subdivision 3, is amended to read:

Subd. 3.

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Development guide;
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Transportation
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policy plan
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.

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(a)
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The transportation
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chapter
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policy plan
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must include policies relating to all transportation forms and be designed

to promote the legislative determinations, policies,
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and
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goals
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, and performance measures
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set forth in section
473.371
.
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In developing the transportation policy plan, the council must

establish a process to solicit, collect, and evaluate public input throughout the metropolitan

area.
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(b)
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In addition to the requirements of subdivision 1 regarding the contents of the policy

plan, the nontransit element of the transportation
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chapter
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policy plan
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must include the

following:

(1) a statement of the needs and problems of the metropolitan area with respect to the

functions covered, including the present and prospective demand for and constraints on

access to regional business concentrations and other major activity centers and the constraints

on and acceptable levels of development and vehicular trip generation at such centers;

(2) the objectives of and the policies to be forwarded by the policy plan;

(3) a general description of the physical facilities and services to be developed;

(4) a statement as to the general location of physical facilities and service areas;

(5) a general statement of timing and priorities in the development of those physical

facilities and service areas;

(6) a detailed statement, updated every two years, of timing and priorities for

improvements and expenditures needed on the metropolitan highway system;

(7) a general statement on the level of public expenditure appropriate to the facilities;

and

(8) a long-range assessment of air transportation trends and factors that may affect airport

development in the metropolitan area and policies and strategies that will ensure a

comprehensive, coordinated, and timely investigation and evaluation of alternatives for

airport development.

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(c)
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The council
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shall
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must
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develop the nontransit element in consultation with the

transportation advisory board and the Metropolitan Airports Commission and cities having

an airport located within or adjacent to its corporate boundaries. The council
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shall
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must
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also

take into consideration the airport development and operations plans and activities of the

commission. The council
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shall
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must
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transmit the results to the state Department of

Transportation.

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EFFECTIVE DATE; APPLICATION.

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This section is effective the day following

final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,

Scott, and Washington.

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Sec. 3.

Minnesota Statutes 2024, section 473.1466, is amended to read:

473.1466 TRANSPORTATION SYSTEM PERFORMANCE EVALUATION.

(a) Prior to each major revision of the transportation policy plan, the council must carry

out a performance evaluation of the metropolitan area's transportation system as a whole.

The performance evaluation must:

(1) evaluate the area's ability to meet the need for effective and efficient transportation

of goods and people;

(2) evaluate trends and their impacts on the area's transportation system;

(3) assess the region's success in meeting the currently adopted regional transportation

benchmarks
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and the performance measures under section 473.371, subdivision 3
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; and

(4) include an evaluation of the regional transit system, including a comparison with

peer metropolitan regions with regard to key operating and investment measurements.

(b) The council must update the evaluation of the regional transit system every two

years.

(c) The council
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shall
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must
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use the results of the performance evaluation to make

recommendations for improving the system in each revision of the transportation policy

plan.

(d) The council must conduct a peer review of the performance evaluation using at least

two nationally recognized transportation and transit consultants.

(e) The council must submit the performance evaluation to the chairs and ranking minority

members of the house of representatives and senate committees and divisions with jurisdiction

over transportation finance and policy.

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EFFECTIVE DATE; APPLICATION.

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This section is effective the day following

final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,

Scott, and Washington.

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Sec. 4.

Minnesota Statutes 2024, section 473.371, is amended by adding a subdivision to

read:

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Subd. 3.

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Transit performance measures.

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(a) The council must incorporate performance

measures as specified under this subdivision in its transit system planning, analysis, and

evaluation.

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(b) A service density performance measure is the number of residents located within

one-half mile of a regular route transit stop or station for high frequency service, as follows:

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(1) 250,000 beginning in 2030;

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(2) 500,000 beginning in 2035; and

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(3) 1,000,000 beginning in 2040.

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(c) An efficiency performance measure is a decrease in average transit operating costs

by at least the following, compared with the average operating costs over calendar years

2023 to 2025:

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(1) .... percent by 2030;

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(2) .... percent by 2035; and

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(3) .... percent by 2040.

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(d) Nothing in this subdivision prevents the council from establishing additional

performance measures.

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EFFECTIVE DATE; APPLICATION.

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This section is effective the day following

final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,

Scott, and Washington.

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Sec. 5.

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[473.378] TRANSIT SYSTEM INVESTMENT FRAMEWORK.

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Subdivision 1.

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Definitions.

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(a) For purposes of this section, the following terms have

the meanings given.

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(b) "Busway" has the meaning given in section 473.4485, subdivision 1.

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(c) "Framework" means the transit system investment framework under this section.

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(d) "Guideway" has the meaning given in section 473.4485, subdivision 1.

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Subd. 2.

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Framework establishment.

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(a) The council must adopt a transit system

investment framework that identifies expanded transit coverage and system improvements

sufficient to meet the adopted regional transit benchmarks, including federal performance

measures, and all performance measures under section 473.371, subdivision 3.

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(b) The council must develop the initial framework by February 1, 2027, and must update

the framework in conjunction with each major revision of the transportation policy plan or

following a significant change in transit finance for the metropolitan area.

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(c) The council must submit the framework to the chairs and ranking minority members

of the legislative committees with jurisdiction over transportation policy and finance.

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Subd. 3.

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Framework requirements.

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(a) The framework must use the planning period

of the transportation policy plan. The framework is not fiscally constrained by expected

available funds over the planning period.

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(b) The framework must:

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(1) establish a methodology and criteria to identify, evaluate, and prioritize transit routes

under the framework;

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(2) identify busway and guideway routes and specify geographic information on each

route;

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(3) estimate schedules for project development and construction of the identified routes

under clause (2);

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(4) address service and facility improvements; and

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(5) develop preliminary fiscal estimates that include costs for capital, operations, and

maintenance and a comparison to expected available funds.

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Subd. 4.

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Framework consistency; limitations.

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(a) On or after March 1, 2027, the

commissioner of transportation and a political subdivision must not commence roadway

work for a highway project in a manner that is inconsistent with the transit system investment

framework.

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(b) The prohibition under this subdivision includes but is not limited to construction,

reconstruction, reconditioning, resurfacing, and rehabilitation. The prohibition under this

subdivision does not apply to planning, project development, environmental analysis, land

acquisition, and routine preventive maintenance.

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Subd. 5.

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Framework consistency; inconsistent projects; funds reallocation.

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(a)

Following an inconsistency under subdivision 4, funds must be reallocated as follows:

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(1) for a Department of Transportation project, .... percent of motor vehicle lease sales

tax revenue under section 297A.815, subdivision 3, paragraph (b), clause (4), otherwise

distributed to the trunk highway fund must be reallocated to the transportation impact

assessment and mitigation account under section 161.178, subdivision 8;

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(2) for a council project, .... percent of regional transportation sales tax revenue under

section 297A.9915, subdivision 4, paragraph (a), clause (1), otherwise distributed to the

council must be reallocated in equal amounts to metropolitan counties for the purposes

specified under section 473.4465, subdivision 4;

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(3) for a county project, .... percent of regional transportation sales tax revenue under

section 297A.9915, subdivision 4, paragraph (a), clause (2), otherwise distributed to that

county must be reallocated to the council for the purposes specified under section 473.4465,

subdivision 2, paragraph (b); and

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(4) for a city project, either of the following sources, as applicable, otherwise distributed

to that city must be reallocated to the transportation impact assessment and mitigation

account under section 161.178, subdivision 8:

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(i) .... percent of small cities assistance under section 162.145; or

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(ii) .... percent of larger cities assistance under section 162.146.

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(b) For each determination of inconsistency, the appropriate commissioner of

transportation or revenue must reallocate or transfer the relevant funds as provided under

paragraph (a) on a onetime basis in the following fiscal year.

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EFFECTIVE DATE; APPLICATION.

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This section is effective the day following

final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,

Scott, and Washington. Subdivisions 4 and 5 do not apply to a highway project that was

either included in a transportation improvement program or has been submitted for approval

of the geometric layout before March 1, 2027.

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Sec. 6.

Minnesota Statutes 2024, section 473.405, subdivision 3, is amended to read:

Subd. 3.

Condemnation.

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(a)
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The council may for transit purposes acquire property,

franchises, easements, or property rights or interests of any kind by condemnation

proceedings pursuant to chapter 117. Except as provided in subdivision 9, the council may

take possession of any property for which condemnation proceedings have been commenced

at any time after the filing of the petition describing the property in the proceedings. The

council may contract with an operator or other persons for the use by the operator or person

of any property under the council's control.

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(b) "Transit purposes" under this subdivision includes but is not limited to advancing

transit-oriented development, as defined in section 473.852, subdivision 12:

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(1) in existing transit corridors;

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(2) in transit corridors identified in the transportation policy plan or transit system

investment framework under section 473.378; and

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(3) within one-half mile of transit corridors under clause (1) or (2).

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EFFECTIVE DATE; APPLICATION.

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This section is effective the day following

final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,

Scott, and Washington.

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Sec. 7.

Minnesota Statutes 2024, section 473.852, is amended by adding a subdivision to

read:

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Subd. 12.

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Transit-oriented development.

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"Transit-oriented development" means a set

of planning practices, standards, and zoning for a geographic area to enable development

that:

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(1) allows mixed uses in close proximity to one another, which may include

higher-density residential, mixed types of residential dwellings, commercial, institutional,

and open spaces; and

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(2) supports pedestrian, nonmotorized, and transit forms of travel.

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EFFECTIVE DATE; APPLICATION.

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This section is effective the day following

final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,

Scott, and Washington.

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Sec. 8.

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[473.8705] DEVELOPMENT FOR TRANSIT.

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Subdivision 1.

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Transit capital project expenditures.

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(a) On or after March 1, 2027, a

local governmental unit must not expend funds for construction of a transit capital project

located outside transit market areas I or II, as specified in the transportation policy plan

under section 473.146, subdivision 3, unless the official controls of that local governmental

unit for the area within .... mile of each station or stop under the project are in conformance

with transit-oriented development.

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(b) The prohibition under this subdivision does not apply to planning, project

development, environmental analysis, land acquisition, and routine preventive maintenance.

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Subd. 2.

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Acquisition of property for transit-oriented development.

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The council, a

local governmental unit, or a housing and redevelopment authority may acquire property

within .... miles of a transit corridor for transit-oriented development. The council, a local

governmental unit, or a housing and redevelopment authority may retain ownership of the

development or may enter into a lease-management agreement with a nonprofit organization

for the operation of the development.

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EFFECTIVE DATE; APPLICATION.

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This section is effective the day following

final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,

Scott, and Washington.

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Sec. 9.
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TRANSPORTATION POLICY PLAN AMENDMENT.
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By January 15, 2027, the Metropolitan Council must adopt an amendment to the

transportation policy plan under Minnesota Statutes, section 473.146, that incorporates the

performance measures specified under Minnesota Statutes, section 473.371, subdivision 3.

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EFFECTIVE DATE; APPLICATION.

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This section is effective the day following

final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,

Scott, and Washington.

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