Subd. 1. Definitions.

For purposes of this section, "eligible recipient" or "recipient" means a political subdivision that:

1. (1) has a directly elected governing board;
2. (2) maintains sole jurisdiction over a roadway system;
3. (3) does not receive direct dedicated funding under section 16A.88, 162.07, 162.13, 162.145, 162.146, or 297A.9915; and

4. (4) either:

   1. (i) has a population greater than 10,000 according to the last two federal decennial censuses; or
   2. (ii) is contained within a city of the first class.

Subd. 2. Local government road funding gap assistance account.

A local government road funding gap assistance account is created in the special revenue fund. The account consists of money donated, allotted, transferred, or otherwise provided to the account. Money in the account is annually appropriated to the commissioner of transportation and may only be expended as provided under this section. Notwithstanding section 16B.98, subdivision 14, the commissioner must not use any amount of this appropriation for administrative costs.

Subd. 3. Distribution.

The commissioner must annually distribute, transfer, or grant the available money in the local government road funding gap assistance account equally among all eligible recipients.

Subd. 4. Use of funds.

Money distributed under this section is available only for design, engineering, construction, reconstruction, and maintenance of roads solely under the jurisdiction of the recipient.