Wisconsin Legislative Council AMENDMENT MEMO One Ea st Ma in Stre e t, Suite 401 • Ma dison, W I 53703 • (608) 266-1304 • le g.council@le gis.wisconsin.gov • http://www.le gis.wisconsin.gov/lc Memo published: June 7, 2023 Contact: David Moore, Senior Staff Attorney 2023 Senate Bill 247 Senate Substitute Amendment 1 and Senate Amendment 1 to Senate Substitute Amendment 1 2023 SENATE BILL 247 The Local Roads Improvement Program (LRIP) reimburses local governments for improving seriously deteriorating highways. LRIP provides grants of state funds for capital improvements on existing county, town, city, and village roads, and for feasibility studies for such improvements. Generally, grants may cover up to 50 percent of the total project cost. In each of the 2019-21 and 2021-23 biennial budget acts, however, the Legislature provided supplemental LRIP funds that could be used to reimburse up to 90 percent of project costs. 2023 Senate Bill 247 creates a separate grant program within LRIP for the improvement of “agricultural road facilities,” as defined by the bill, 1 and appropriates $150,000,000 in 2023-24 for these grants. Very generally, the bill establishes eligibility requirements for projects to receive funds under this program, directs the Department of Transportation (DOT) to prioritize certain criteria when awarding grants for agricultural road facility improvements, and provides various guidelines related to the administration of this grant program. A grant under the bill may reimburse up to 100 percent of project costs. SENATE SUBSTITUTE AMENDMENT 1 Senate Substitute Amendment 1 makes “agricultural roads improvements” eligible for LRIP grants. An agricultural roads improvement project must improve a county, town, city, or village highway functionally classified by DOT as a local road or minor collector, or a bridge or culvert on such a highway. Similar to the bill, the substitute amendment establishes eligibility requirements for projects to receive grants for agricultural roads improvements, directs DOT to prioritize certain criteria when awarding grants, and provides guidelines related to the administration of these grants. 1 The bill defines “agricultural road facility” as “a highway functionally classified by the [Department of Transportation] as a local road or minor collector or a bridge or culvert on a highway functionally classified as a local road or minor collector.” Briefly, minor collectors and local roads provide access to homes and businesses and have generally lower speed limits and more limited mobility for through traffic than roads with higher classifications, such as arterials and major collectors. - 2 - Eligibility Under the substitute amendment, an agricultural roads improvement project is eligible for funding if it meets all of the following criteria: The highway, bridge, or culvert provides access to agricultural lands and facilities used for the production of agricultural goods, including forest products. The highway, bridge, or culvert is used by more than one agricultural producer. The highway is designated as a class “B” highway due to structural deficiencies, or is subject to a posted weight limitation at least annually. After the improvement, the highway will not be designated as a class “B” highway and will not be subject to a posted weight limitation other than under extraordinary or emergency circumstances. Prioritization The substitute amendment requires DOT to prioritize the following in awarding grants: A project that improves access by the largest number of agricultural producers to agricultural lands and facilities used for the production of agricultural goods. A project that will result in the greatest positive economic impact. A highway, bridge, or culvert that provides the only feasible access to agricultural lands used for the production of agricultural goods. An application by a local government that faces demonstrable fiscal or administrative difficulties in completing highway projects. A project that will result in the reduction of any of the following for agricultural producers: o Deferred or delayed trips. o Repeated trips at reduced weights. o Labor costs. o Fuel costs. o Mileage upon and damage to equipment used in agricultural production. o Any other costs resulting from a highway being designated as a class “B” highway. A project that will result in the transportation of the largest amount of agricultural goods. Administration The substitute amendment directs DOT to prescribe the form, nature, and extent of information contained in an application for a grant. If feasible, the application may not exceed two pages in length and be reasonably accessible to local governments with limited staffing resources. If the application is for a project to improve a class “B” highway, DOT must require the applicant to state when the highway was designated as a class “B” highway. Under the substitute amendment, a local government that is awarded a grant may designate DOT to act as a fiscal agent of the local government for purposes of a project funded by the grant. In addition, a town and its county may agree that the county will act as a fiscal agent for the town for those same purposes. When acting as a fiscal agent, DOT or the county must, upon request, pay reimbursable - 3 - project costs when the costs are incurred by the local government. The fiscal agent then may retain or receive grant funds in reimbursement for those payments. A grant under the substitute amendment may reimburse up to 100 percent of project costs. Eligible costs include any cost related to the project, including costs of planning, designing, engineering, and constructing an agricultural road project. A local government may apply for partial payment, but not more frequently than quarterly. The substitute amendment requires DOT to establish a committee to review grant applications and award grants. The DOT secretary appoints members to the committee for two-year terms. The committee membership must have geographically diverse representation and must include representatives of agricultural industries and local governments eligible for agricultural roads improvement grants. With respect to a highway, bridge, or culvert improved with an agricultural roads improvement grant, the substitute amendment prevents a local government from designating it as a class “B” highway or posting a weight limitation other than under extraordinary or emergency circumstances unless the local government obtains a pavement or structural analysis by a professional engineer or the relevant county highway commissioner that supports the weight limitation and certifies to DOT the reason for the weight limitation. SENATE AMENDMENT 1 TO SENATE SUBSTITUTE AMENDMENT 1 Senate Amendment 1 to Senate Substitute Amendment 1 retains the overall structure of the substitute amendment, but makes the following modifications regarding eligibility, prioritization, and administration. Eligibility Under the simple amendment, the highway, bridge, or culvert is eligible for funding if it provides access to either agricultural lands or facilities (instead of both), and the highway, bridge, or culvert must be used by at least one agricultural producer (instead of more than one). Prioritization As a companion to the above changes regarding eligibility, the simple amendment creates priority for a project that improves access by the largest number of agricultural producers to agricultural lands or facilities. It also creates priority for a project that improves access to agricultural lands or facilities for the production of agricultural goods for more than one agricultural producer. Finally, the simple amendment creates priority for a project that will result in the reduction of costs resulting from a posted highway weight limit. Administration For purposes of reimbursement, the simple amendment requires that DOT divide each type of local government into quartiles based on a ratio of equalized value per highway mile under that government’s jurisdiction. In lieu of providing all grants at 100 percent reimbursement of project costs, the simple amendment provides 90 percent reimbursement to a local government in the highest quartile and 95 percent reimbursement to a local government in the second-highest quartile. A local government in the lowest two quartiles remains eligible for 100 percent reimbursement. - 4 - The simple amendment also requires the committee established by DOT to attempt to award grants to local governments in all geographic areas of the state and to submit an annual report to the Legislature. The report must provide the number and total amount of grants awarded, and an estimate of the economic impact of projects funded, during the previous year and cumulatively. No report is required for any year in which no grants are awarded. BILL HISTORY Senator Marklein offered Senate Substitute Amendment 1 to Senate Bill 247 on May 22, 2023, and Senate Amendment 1 to Senate Substitute Amendment 1 on May 31, 2023. On June 1, 2023, the Senate Committee on Transportation and Local Government unanimously voted to recommend adoption of both amendments and passage of the bill, as amended. For a full history of the bill, visit the Legislature’s bill history page. DM:ksm