HF4886

Purpose

This bill creates a Road Construction Mitigation Grant Program to help businesses that are negatively affected by transportation construction. The goal is to provide financial support to keep local jobs and reduce negative effects on nearby businesses during project work.

Key Provisions and How It Works

• Establishment of the program: A road construction mitigation grant program is created under 116J.432. The commissioner of the Department of Employment and Economic Development, in coordination with the Commissioner of Transportation, runs the program.
• Eligible projects: For each eligible transportation project (a trunk highway corridor redesign or construction project that will cause substantial business impacts), a grant is provided to a local organization (a community-based development organization, a chamber of commerce, or an initiative foundation) to distribute one-time financial assistance to qualified businesses along the project corridor.
• Eligible recipients: Grants are provided to qualified businesses that:
  • Employ no more than 25 full-time equivalent employees.
  • Are located within 300 feet of the construction project.
  • Experience impairment of road access, parking, or visibility because of the project.
• Use of funds: Grants may be used for employee payroll, operating expenses, or facilities expenses. They may not be used for bonuses, purchasing new equipment, capital improvements, or construction/expansion costs.
• Administration costs: The state agency may use up to 1% of each grant for administrative costs. The local recipient organization may retain up to 4% for its own administrative costs.
• Award process: For each eligible project, the grant is awarded in equal amounts to qualified businesses along the project corridor through the designated local organization.
• Reporting requirements: By January 15, 2028, and each year thereafter, the commissioner must report to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation finance and policy. The report must identify each eligible project, the local organization receiving the grant, each business that received funds (including names and addresses, business types, and award amounts).
• Funding level: Each eligible transportation project allocates 1% of the total project budget for the grant awards.

Changes to Existing Law

• Business liaison requirement added to 160.165 Subd. 2: For projects expected to have substantial business impacts, a transportation authority must designate a business liaison to coordinate with affected businesses.
  • The liaison must consult with affected businesses before and during construction to explore mitigation options, including signage.
  • The liaison must provide information to affected businesses about project duration, schedules, lane closures, detours, access impacts, parking, visibility, noise, dust, vibration, and opportunities for public participation.
  • If the transportation authority is the commissioner, the liaison must also inform businesses about the road construction business mitigation grant program (116J.432).

Summary of What This Bill Seeks to Accomplish

• Provide targeted financial relief to small local businesses near road construction projects.
• Help preserve and retain jobs in areas affected by transportation construction.
• Improve communication and mitigation of project impacts on nearby businesses through designated business liaisons.
• Create a formal reporting framework to track grants and their effects on local businesses.

Potential Impacts

• Small businesses near major road projects may receive direct financial support to cover operating costs and payroll.
• Local economic activity could be stabilized during construction through timely information and mitigation efforts.
• State agencies will have ongoing data on how infrastructure projects affect nearby businesses.

Relevant Terms - Road Construction Mitigation Grant Program - Eligible transportation project - Substantial business impacts - Qualified business - Local community-based development organization - Chamber of commerce - Initiative foundation - Payroll expenses - Operating expenses - Facilities expenses - Administrative costs - Business liaison - Signage - Trunk highway corridor redesign or construction - One-time financial assistance - Equal amounts - Within 300 feet - 25 full-time equivalent employees - Reporting requirements - 1% funding for grants - 4% administrative cost cap for recipients - 160.165 Subd. 2 (business liaison provision) - 116J.432 (grant program reference)