Bill Text: MN HF721 | 2013-2014 | 88th Legislature | Introduced


Bill Title: Governor's transportation budget established; transportation money appropriated; fund transfers, tort claims, and revenue bond issuance authority provided; transportation economic development account and metropolitan area transit sales and use tax established; trunk highway expenses clarified; grade crossing safety account modified; and exemptions made.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2013-02-28 - Committee report, to pass and re-refer to Transportation Finance vote: 68-57 [HF721 Detail]

Download: Minnesota-2013-HF721-Introduced.html

1.1A bill for an act
1.2relating to transportation; establishing the governor's budget for transportation;
1.3appropriating money for transportation, Metropolitan Council, and public
1.4safety activities; providing for fund transfers and tort claims; establishing a
1.5transportation economic development account and related regulations; clarifying
1.6expenses not considered trunk highway purposes; modifying the grade crossing
1.7safety account; providing authority to issue revenue bonds; establishing a
1.8metropolitan area sales and use tax for transit; extending an effective date; making
1.9exemptions;amending Minnesota Statutes 2012, sections 161.20, subdivision
1.103; 219.1651; 473.39, by adding a subdivision; Laws 2009, chapter 9, section 1;
1.11proposing coding for new law in Minnesota Statutes, chapters 116J; 473.
1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13ARTICLE 1
1.14TRANSPORTATION APPROPRIATIONS

1.15
Section 1. SUMMARY OF APPROPRIATIONS.
1.16The amounts shown in this section summarize direct appropriations, by fund, made
1.17in this act.
1.18
2014
2015
Total
1.19
General
$
67,217,000
$
67,217,000
$
134,434,000
1.20
Airports
19,109,000
19,109,000
38,218,000
1.21
C.S.A.H.
593,022,000
603,850,000
1,196,872,000
1.22
M.S.A.S.
152,173,000
154,491,000
306,664,000
1.23
Special Revenue
49,738,000
49,959,000
99,697,000
1.24
Highway User
10,406,000
10,406,000
20,812,000
1.25
Trunk Highway
1,710,481,000
1,638,828,000
3,349,309,000
1.26
Total
$
2,602,146,000
$
2,543,860,000
$
5,146,006,000

1.27
Sec. 2. TRANSPORTATION APPROPRIATIONS.
2.1The sums shown in the columns marked "Appropriations" are appropriated to the
2.2agencies and for the purposes specified in this act. The appropriations are from the trunk
2.3highway fund, or another named fund, and are available for the fiscal years indicated for
2.4each purpose. The figures "2014" and "2015" used in this act mean that the appropriations
2.5listed under them are available for the fiscal year ending June 30, 2014, or June 30, 2015,
2.6respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015.
2.7"The biennium" is fiscal years 2014 and 2015.
2.8
APPROPRIATIONS
2.9
Available for the Year
2.10
Ending June 30
2.11
2014
2015

2.12
2.13
Sec. 3. DEPARTMENT OF
TRANSPORTATION
2.14
Subdivision 1.Total Appropriation
$
2,404,403,000
$
2,345,815,000
2.15
Appropriations by Fund
2.16
2014
2015
2.17
General
17,186,000
17,105,000
2.18
Airports
19,109,000
19,109,000
2.19
C.S.A.H.
593,022,000
603,850,000
2.20
M.S.A.S.
152,173,000
154,491,000
2.21
Trunk Highway
1,622,913,000
1,551,260,000
2.22The amounts that may be spent for each
2.23purpose are specified in the following
2.24subdivisions.
2.25
Subd. 2.Multimodal Systems
42,985,000
42,904,000
2.26
Appropriations by Fund
2.27
2014
2015
2.28
General
17,129,000
17,048,000
2.29
Airports
19,084,000
19,084,000
2.30
Trunk Highway
6,772,000
6,772,000
2.31
(a) Aeronautics
20,184,000
20,184,000
2.32
Appropriations by Fund
2.33
2014
2015
2.34
Trunk Highway
1,100,000
1,100,000
2.35
Airports
19,084,000
19,084,000
2.36
(1) Airport Development and Assistance
13,798,000
13,798,000
3.1This appropriation is from the state
3.2airports fund and must be spent according
3.3to Minnesota Statutes, section 360.305,
3.4subdivision 4.
3.5The base appropriation for fiscal years 2016
3.6and 2017 is $14,298,000 for each year.
3.7Notwithstanding Minnesota Statutes, section
3.816A.28, subdivision 6, this appropriation is
3.9available until expended.
3.10If the appropriation for either year is
3.11insufficient, the appropriation for the other
3.12year is available for it.
3.13
(2) Aviation Support and Services
6,386,000
6,386,000
3.14
Appropriations by Fund
3.15
2014
2015
3.16
Airports
5,286,000
5,286,000
3.17
Trunk Highway
1,100,000
1,100,000
3.18$65,000 in each year is from the state airports
3.19fund for the Civil Air Patrol.
3.20
(b) Transit
17,148,000
17,067,000
3.21
Appropriations by Fund
3.22
2014
2015
3.23
General
16,373,000
16,292,000
3.24
Trunk Highway
775,000
775,000
3.25The base appropriation from the general
3.26fund is $16,373,000 for fiscal year 2014 and
3.27$16,292,000 for fiscal year 2015.
3.28$100,000 in fiscal year 2014 is from the
3.29general fund for the administrative expenses
3.30of the Minnesota Council on Transportation
3.31Access under Minnesota Statutes, section
3.32174.285.
3.33
(c) Passenger Rail
500,000
500,000
4.1This appropriation is from the general
4.2fund for passenger rail system planning,
4.3alternatives analysis, environmental analysis,
4.4design, and preliminary engineering under
4.5Minnesota Statutes, sections 174.632 to
4.6174.636.
4.7
(d) Freight
5,153,000
5,153,000
4.8
Appropriations by Fund
4.9
2014
2015
4.10
General
256,000
256,000
4.11
Trunk Highway
4,897,000
4,897,000
4.12
Subd. 3.State Roads
1,556,388,000
1,484,735,000
4.13
Appropriations by Fund
4.14
2014
2015
4.15
General
3,000
3,000
4.16
Trunk Highway
1,556,385,000
1,484,732,000
4.17
(a) Operations and Maintenance
262,395,000
262,395,000
4.18
(b) Program Planning and Delivery
206,470,000
206,470,000
4.19$130,000 in each year is available for
4.20administrative costs of the department's
4.21targeted group business program.
4.22$266,000 in each year is available for grants
4.23to metropolitan planning organizations
4.24outside the seven-county metropolitan area.
4.25$75,000 in each year is available for a
4.26transportation research contingent account
4.27to finance research projects that are
4.28reimbursable from the federal government or
4.29from other sources. If the appropriation for
4.30either year is insufficient, the appropriation
4.31for the other year is available for it.
4.32$900,000 in each year is available for
4.33grants for transportation studies outside
4.34the metropolitan area to identify critical
5.1concerns, problems, and issues. These
5.2grants are available (1) to regional
5.3development commissions; (2) in regions
5.4where no regional development commission
5.5is functioning, to joint powers boards
5.6established under agreement of two or
5.7more political subdivisions in the region to
5.8exercise the planning functions of a regional
5.9development commission; and (3) in regions
5.10where no regional development commission
5.11or joint powers board is functioning, to the
5.12department's district office for that region.
5.13
(c) State Road Construction Total
880,400,000
806,600,000
5.14
Appropriations by Fund
5.15
2014
2015
5.16
Trunk Highway
880,400,000
806,600,000
5.17
5.18
(1) Economic Recovery Funds - Federal
Highway Aid
1,000,000
1,000,000
5.19To complete projects using funds
5.20made available to the commissioner
5.21of transportation under title XII of the
5.22American Recovery and Reinvestment Act
5.23of 2009, Public Law 111-5 and implemented
5.24under Minnesota Statutes, section 161.36,
5.25subdivision 7.
5.26
(2) State Road Construction
879,400,000
805,400,000
5.27It is estimated that the appropriations for the
5.28biennium will be funded as follows:
5.29
Appropriations by Fund
5.30
2014
2015
5.31
5.32
Federal Highway
Aid
489,200,000
482,200,000
5.33
Highway User Taxes
390,200,000
323,200,000
5.34The commissioner of transportation shall
5.35notify the chairs and ranking minority
6.1members of the legislative committees with
6.2jurisdiction over transportation finance of
6.3any significant events that should cause these
6.4estimates to change.
6.5This appropriation is for the actual
6.6construction, reconstruction, and
6.7improvement of trunk highways, including
6.8design-build contracts and consultant usage
6.9to support these activities. This includes the
6.10cost of actual payment to landowners for
6.11lands acquired for highway rights-of-way,
6.12payment to lessees, interest subsidies, and
6.13relocation expenses.
6.14The base appropriation is $635,000,000 in
6.15fiscal year 2016 and $635,000,000 in fiscal
6.16year 2017.
6.17The commissioner may expend up to one-half
6.18of one percent of the federal appropriations
6.19under this paragraph as grants to opportunity
6.20industrialization centers and other nonprofit
6.21job training centers for job training programs
6.22related to highway construction.
6.23The commissioner may transfer up to
6.24$15,000,000 each year to the transportation
6.25revolving loan fund.
6.26The commissioner may receive money
6.27covering other shares of the cost of
6.28partnership projects. These receipts are
6.29appropriated to the commissioner for these
6.30projects.
6.31
(d) Highway Debt Service
201,952,000
204,099,000
6.32$192,452,000 the first year and $194,599,000
6.33the second year are for transfer to the state
6.34bond fund. If this appropriation is insufficient
7.1to make all transfers required in the year
7.2for which it is made, the commissioner of
7.3management and budget shall notify the
7.4Committee on Finance of the senate and
7.5the Committee on Ways and Means of the
7.6house of representatives of the amount of the
7.7deficiency and shall then transfer that amount
7.8under the statutory open appropriation. Any
7.9excess appropriation cancels to the trunk
7.10highway fund.
7.11
(e) Electronic Communications
5,171,000
5,171,000
7.12
Appropriations by Fund
7.13
2014
2015
7.14
General
3,000
3,000
7.15
Trunk Highway
5,168,000
5,168,000
7.16The general fund appropriation is to equip
7.17and operate the Roosevelt signal tower for
7.18Lake of the Woods weather broadcasting.
7.19
Subd. 4.Local Roads
745,195,000
758,341,000
7.20
(a) County State Aid Roads
593,022,000
603,850,000
7.21This appropriation is from the county
7.22state-aid highway fund under Minnesota
7.23Statutes, section 161.081, and chapter 162,
7.24and is available until spent.
7.25If the commissioner of transportation
7.26determines that a balance remains in the
7.27county state-aid highway fund following
7.28the appropriations and transfers made in
7.29this subdivision, and that the appropriations
7.30made are insufficient for advancing county
7.31state-aid highway projects, an amount
7.32necessary to advance the projects, not to
7.33exceed the balance in the county state-aid
7.34highway fund, is appropriated in each year
7.35to the commissioner. Within two weeks
8.1of a determination under this contingent
8.2appropriation, the commissioner of
8.3transportation shall notify the commissioner
8.4of management and budget and the chairs
8.5and ranking minority members of the
8.6legislative committees with jurisdiction over
8.7transportation finance concerning funds
8.8appropriated.
8.9
(b) Municipal State Aid Roads
152,173,000
154,491,000
8.10This appropriation is from the municipal
8.11state-aid street fund under Minnesota
8.12Statutes, chapter 162, and is available until
8.13spent.
8.14If the commissioner of transportation
8.15determines that a balance remains in the
8.16municipal state-aid street fund following the
8.17appropriations and transfers made in this
8.18subdivision, and that the appropriations made
8.19are insufficient for advancing municipal
8.20state-aid street projects, an amount necessary
8.21to advance the projects, not to exceed
8.22the balance in the municipal state-aid
8.23street fund, is appropriated in each year
8.24to the commissioner. Within two weeks
8.25of a determination under this contingent
8.26appropriation, the commissioner of
8.27transportation shall notify the commissioner
8.28of management and budget and the chairs
8.29and ranking minority members of the
8.30legislative committees with jurisdiction over
8.31transportation finance concerning funds
8.32appropriated.
8.33
Subd. 5.Agency Management
59,835,000
59,835,000
8.34
Appropriations by Fund
8.35
2014
2015
9.1
General
54,000
54,000
9.2
Airports
25,000
25,000
9.3
Trunk Highway
59,756,000
59,756,000
9.4
(a) Agency Services
41,997,000
41,997,000
9.5
Appropriations by Fund
9.6
2014
2015
9.7
Airports
25,000
25,000
9.8
Trunk Highway
41,972,000
41,972,000
9.9
(b) Buildings
17,838,000
17,838,000
9.10
Appropriations by Fund
9.11
2014
2015
9.12
General
54,000
54,000
9.13
Trunk Highway
17,784,000
17,784,000
9.14Any money appropriated to the commissioner
9.15of transportation for building construction for
9.16any fiscal year before the first year is available
9.17for the commissioner of transportation
9.18during the biennium to the extent that the
9.19commissioner spends the money on the
9.20building construction projects for which the
9.21money was originally encumbered during the
9.22fiscal year for which it was appropriated.
9.23
Subd. 6.Transfers
9.24(a) With the approval of the commissioner of
9.25management and budget, the commissioner
9.26of transportation may transfer unencumbered
9.27balances among the appropriations from the
9.28trunk highway fund and the state airports
9.29fund made in this section. No transfer
9.30may be made from the appropriation for
9.31state road construction. No transfer may
9.32be made from the appropriations for debt
9.33service to any other appropriation. Transfers
9.34under this subdivision may not be made
9.35between funds. Transfers between programs
10.1must be reported immediately to the chairs
10.2and ranking minority members of the
10.3legislative committees with jurisdiction over
10.4transportation finance.
10.5(b) The commissioner shall transfer from
10.6the flexible highway account in the county
10.7state-aid highway fund:
10.8(1) $12,700,000 in the first year to the
10.9municipal state-aid street fund;
10.10(2) $10,000,000 in the second year to the
10.11municipal turnback account in the municipal
10.12state-aid street fund; and
10.13(3) the remainder in each year to the county
10.14turnback account in the county state-aid
10.15highway fund. The funds transferred are
10.16for highway turnback purposes as provided
10.17by Minnesota Statutes, section 161.081,
10.18subdivision 3.
10.19
10.20
Subd. 7.Use of State Road Construction
Appropriations
10.21Any money appropriated to the commissioner
10.22of transportation for state road construction
10.23for any fiscal year before fiscal year 2012
10.24is available to the commissioner during the
10.25biennium to the extent that the commissioner
10.26spends the money on the state road
10.27construction project for which the money
10.28was originally encumbered during the fiscal
10.29year for which it was appropriated.
10.30
Subd. 8.Contingent Appropriation
10.31The commissioner of transportation, with
10.32the approval of the governor and the
10.33written approval of at least five members
10.34of a group consisting of the members of
11.1the Legislative Advisory Commission
11.2under Minnesota Statutes, section 3.30,
11.3and the ranking minority members of the
11.4legislative committees with jurisdiction over
11.5transportation finance, may transfer all or
11.6part of the unappropriated balance in the
11.7trunk highway fund to an appropriation (1)
11.8for trunk highway design, construction, or
11.9inspection in order to take advantage of an
11.10unanticipated receipt of income to the trunk
11.11highway fund or to take advantage of federal
11.12advanced construction funding, (2) for trunk
11.13highway maintenance in order to meet an
11.14emergency, or (3) to pay tort or environmental
11.15claims. Nothing in this subdivision
11.16authorizes the commissioner to increase the
11.17use of federal advanced construction funding
11.18beyond amounts specifically authorized.
11.19Any transfer as a result of the use of federal
11.20advanced construction funding must include
11.21an analysis of the effects on the long-term
11.22trunk highway fund balance. The amount
11.23transferred is appropriated for the purpose of
11.24the account to which it is transferred.

11.25
11.26
Sec. 4. METROPOLITAN COUNCIL
TRANSIT
$
41,489,000
$
41,570,000
11.27
Transit
41,489,000
41,570,000
11.28This appropriation is for transit system
11.29operations.

11.30
Sec. 5. PUBLIC SAFETY
11.31
Subdivision 1.Total Appropriation
$
155,654,000
$
155,875,000
11.32
Appropriations by Fund
11.33
2014
2015
11.34
General
8,542,000
8,542,000
11.35
Trunk Highway
86,968,000
86,968,000
12.1
Highway User
10,406,000
10,406,000
12.2
Special Revenue
49,738,000
49,959,000
12.3The amounts that may be spent for each
12.4purpose are specified in the following
12.5subdivisions.
12.6
Subd. 2.Administration and Related Services
12,628,000
12,628,000
12.7
Appropriations by Fund
12.8
2014
2015
12.9
General
4,900,000
4,900,000
12.10
Trunk Highway
6,343,000
6,343,000
12.11
Highway User
1,385,000
1,385,000
12.12
(a) Office of Communications
504,000
504,000
12.13
Appropriations by Fund
12.14
2014
2015
12.15
General
111,000
111,000
12.16
Trunk Highway
393,000
393,000
12.17
(b) Public Safety Support
8,439,000
8,439,000
12.18
Appropriations by Fund
12.19
2014
2015
12.20
General
3,467,000
3,467,000
12.21
Trunk Highway
3,606,000
3,606,000
12.22
Highway User
1,366,000
1,366,000
12.23$380,000 in each year is from the general
12.24fund for payment of public safety officer
12.25survivor benefits under Minnesota Statutes,
12.26section 299A.44. If the appropriation for
12.27either year is insufficient, the appropriation
12.28for the other year is available for it.
12.29$1,367,000 in each year is from the general
12.30fund to be deposited in the public safety
12.31officer's benefit account. This money
12.32is available for reimbursements under
12.33Minnesota Statutes, section 299A.465.
12.34$600,000 in each year is from the general
12.35fund and $100,000 in each year is from the
13.1trunk highway fund for soft body armor
13.2reimbursements under Minnesota Statutes,
13.3section 299A.38.
13.4$792,000 in each year is from the general
13.5fund for transfer by the commissioner of
13.6management and budget to the trunk highway
13.7fund on December 31, 2013, and December
13.831, 2014, respectively, in order to reimburse
13.9the trunk highway fund for expenses not
13.10related to the fund. These represent amounts
13.11appropriated out of the trunk highway
13.12fund for general fund purposes in the
13.13administration and related services program.
13.14$610,000 in each year is from the highway
13.15user tax distribution fund for transfer by the
13.16commissioner of management and budget
13.17to the trunk highway fund on December 31,
13.182013, and December 31, 2014, respectively,
13.19in order to reimburse the trunk highway
13.20fund for expenses not related to the fund.
13.21These represent amounts appropriated out
13.22of the trunk highway fund for highway
13.23user tax distribution fund purposes in the
13.24administration and related services program.
13.25$716,000 in each year is from the highway
13.26user tax distribution fund for transfer by the
13.27commissioner of management and budget to
13.28the general fund on December 31, 2013, and
13.29December 31, 2014, respectively, in order to
13.30reimburse the general fund for expenses not
13.31related to the fund. These represent amounts
13.32appropriated out of the general fund for
13.33operation of the criminal justice data network
13.34related to driver and motor vehicle licensing.
13.35
(c) Technical Support Services
3,685,000
3,685,000
14.1
Appropriations by Fund
14.2
2014
2015
14.3
General
1,322,000
1,322,000
14.4
Trunk Highway
2,344,000
2,344,000
14.5
Highway User
19,000
19,000
14.6
Subd. 3.State Patrol
84,616,000
84,616,000
14.7
Appropriations by Fund
14.8
2014
2015
14.9
General
3,642,000
3,642,000
14.10
Trunk Highway
80,189,000
80,189,000
14.11
Highway User
785,000
785,000
14.12
(a) Patrolling Highways
72,522,000
72,522,000
14.13
Appropriations by Fund
14.14
2014
2015
14.15
General
37,000
37,000
14.16
Trunk Highway
72,393,000
72,393,000
14.17
Highway User
92,000
92,000
14.18
(b) Commercial Vehicle Enforcement
7,796,000
7,796,000
14.19$600,000 in each year is for the Office of
14.20Pupil Transportation Safety under Minnesota
14.21Statutes, section 169.435.
14.22
(c) Capitol Security
3,605,000
3,605,000
14.23This appropriation is from the general fund.
14.24The commissioner may not (1) spend
14.25any money from the trunk highway fund
14.26for capitol security or (2) permanently
14.27transfer any state trooper from the patrolling
14.28highways activity to capitol security.
14.29$500,000 in each year is appropriated from
14.30the general fund to the commissioner of
14.31public safety to increase security in the
14.32Capitol Complex.
14.33
(d) Vehicle Crimes Unit
693,000
693,000
15.1This appropriation is from the highway user
15.2tax distribution fund.
15.3This appropriation is to investigate
15.4registration tax and motor vehicle sales tax
15.5liabilities from individuals and businesses
15.6that currently do not pay all taxes owed, and
15.7illegal or improper activity related to sale,
15.8transfer, titling, and registration of meter
15.9vehicles.
15.10
Subd. 4.Driver and Vehicle Services
56,621,000
56,842,000
15.11
Appropriations by Fund
15.12
2014
2015
15.13
Highway User
8,236,000
8,236,000
15.14
Special Revenue
48,384,000
48,605,000
15.15
Trunk Highway
1,000
1,000
15.16
(a) Vehicle Services
27,909,000
28,007,000
15.17
Appropriations by Fund
15.18
2014
2015
15.19
Highway User
8,236,000
8,236,000
15.20
Special Revenue
19,673,000
19,771,000
15.21This appropriation is from the vehicle
15.22services operating account in the special
15.23revenue fund.
15.24$650,000 each year is for seven additional
15.25positions to enhance customer service related
15.26to vehicle title issuance.
15.27$98,000 the second year is from the special
15.28revenue fund for the vehicle services
15.29portion of a new telephone system. This
15.30amount will transfer to the Office of
15.31Enterprise Technology for construction and
15.32development of the system. This is a onetime
15.33appropriation and is available until expended.
15.34Ongoing support costs will be incorporated
15.35into a service level agreement and will be
16.1paid to the Office of Enterprise Technology
16.2under the rates and mechanisms specified in
16.3that agreement.
16.4
(b) Driver Services
28,712,000
28,835,000
16.5
Appropriations by Fund
16.6
2014
2015
16.7
Trunk Highway
1,000
1,000
16.8
Special Revenue
28,711,000
28,834,000
16.9This appropriation is from the driver services
16.10operating account in the special revenue fund.
16.11$71,000 each year is from the special revenue
16.12fund for one new facial recognition position.
16.13$52,000 the second year is from the
16.14special revenue fund for the driver services
16.15portion of a new telephone system. This
16.16amount will transfer to the Office of
16.17Enterprise Technology for construction and
16.18development of the system. This is a onetime
16.19appropriation and is available until expended.
16.20Ongoing support costs will be incorporated
16.21into a service level agreement and will be
16.22paid to the Office of Enterprise Technology
16.23under the rates and mechanisms specified in
16.24that agreement.
16.25
Subd. 5.Traffic Safety
435,000
435,000
16.26
Subd. 6.Pipeline Safety
1,354,000
1,354,000
16.27This appropriation is from the pipeline safety
16.28account in the special revenue fund.

16.29
Sec. 6. TORT CLAIMS
$
600,000
$
600,000
16.30This appropriation is to the commissioner of
16.31management and budget.
17.1If the appropriation for either year is
17.2insufficient, the appropriation for the other
17.3year is available for it.

17.4ARTICLE 2
17.5TRANSPORTATION POLICY

17.6    Section 1. [116J.4365] TRANSPORTATION ECONOMIC DEVELOPMENT
17.7ASSISTANCE PROGRAM.
17.8    Subdivision 1. Program established. (a) The commissioners of transportation and
17.9employment and economic development shall develop and implement a transportation
17.10economic development assistance program as provided in this section, for providing
17.11financial assistance on a geographically balanced basis through competitive grants
17.12for projects in all modes of transportation that provide measurable local, regional, or
17.13statewide economic benefit.
17.14(b) The commissioners of transportation and employment and economic
17.15development may provide financial assistance for a transportation project at their
17.16discretion, subject to the requirements of this section.
17.17    Subd. 2. Transportation economic development account. (a) A transportation
17.18economic development account is established in the special revenue fund under the
17.19budgetary jurisdiction of the senate and house of representatives committees having
17.20jurisdiction over transportation finance. The account consists of funds donated, allotted,
17.21transferred, or otherwise provided to the account.
17.22(b) Money in the account may be expended only as appropriated by law.
17.23(c) Notwithstanding paragraph (a), the account may not contain money transferred
17.24or otherwise provided from the trunk highway fund.
17.25    Subd. 3. Program administration. In implementing the transportation economic
17.26development assistance program, the commissioners of transportation and employment
17.27and economic development shall make reasonable efforts to (1) publicize each solicitation
17.28for applications among all eligible recipients, and (2) provide technical and informational
17.29assistance in creating and submitting applications.
17.30    Subd. 4. Economic impact performance measures. The commissioner of
17.31employment and economic development shall develop economic impact performance
17.32measures to analyze projects for which financial assistance under this section is being
17.33applied for or has been previously provided.
17.34    Subd. 5. Financial assistance; criteria. The commissioners of transportation and
17.35employment and economic development shall establish criteria for evaluating projects
18.1for financial assistance under this section. At a minimum, the criteria must provide an
18.2objective method to prioritize and select projects on the basis of:
18.3(1) the extent to which the project provides measurable economic benefit;
18.4(2) consistency with relevant state and local transportation plans;
18.5(3) the availability and commitment of funding or in-kind assistance for the project
18.6from nonpublic sources;
18.7(4) the need for the project as part of the overall transportation system;
18.8(5) the extent to which completion of the project will improve the movement of
18.9people and freight; and
18.10(6) geographic balance as required under subdivision 7, paragraph (b).
18.11    Subd. 6. Financial assistance; project evaluation process. (a) Following the
18.12criteria established under subdivision 5, the commissioner of employment and economic
18.13development shall (1) evaluate proposed projects, and (2) certify those that may receive
18.14financial assistance.
18.15(b) As part of the project evaluation process, the commissioner of transportation
18.16shall certify that a project constitutes an eligible and appropriate transportation project.
18.17    Subd. 7. Financial assistance; awards. (a) The financial assistance awarded by the
18.18commissioners of transportation and employment and economic development may not
18.19exceed 70 percent of a project's total costs.
18.20(b) The commissioners of transportation and employment and economic development
18.21shall ensure that financial assistance is provided in a manner that is balanced throughout
18.22the state, including with respect to (1) the number of projects receiving funding in a
18.23particular geographic location or region of the state, and (2) the total amount of financial
18.24assistance provided for projects in a particular geographic location or region of the state.
18.25    Subd. 8. Legislative report. (a) By February 1 of each odd-numbered year, the
18.26commissioner of transportation, with assistance from the commissioner of employment
18.27and economic development, shall submit a report on the transportation economic
18.28development assistance program to the chairs and ranking minority members of the
18.29house of representatives and senate committees with jurisdiction over transportation
18.30policy and finance.
18.31(b) At a minimum, the report must:
18.32(1) summarize the requirements and implementation of the transportation economic
18.33development assistance program established in this section;
18.34(2) review the criteria and economic impact performance measures used for
18.35evaluation, prioritization, and selection of projects;
19.1(3) provide a brief overview of each project that received financial assistance under
19.2the program, which must at a minimum identify:
19.3(i) basic project characteristics, such as funding recipient, geographic location,
19.4and type of transportation modes served;
19.5(ii) sources and respective amounts of project funding; and
19.6(iii) the degree of economic benefit anticipated or observed, following the economic
19.7impact performance measures established under subdivision 4;
19.8(4) identify the allocation of funds, including but not limited to a breakdown of total
19.9project funds by transportation mode, the amount expended for administrative costs, and
19.10the amount transferred to the transportation economic development assistance account;
19.11(5) evaluate the overall economic impact of the program consistent with the
19.12accountability measurement requirements under section 116J.997; and
19.13(6) provide recommendations for any legislative changes related to the program.

19.14    Sec. 2. Minnesota Statutes 2012, section 161.20, subdivision 3, is amended to read:
19.15    Subd. 3. Trunk highway fund appropriations. The commissioner may expend
19.16trunk highway funds only for trunk highway purposes. Payment of expenses related
19.17to Bureau of Criminal Apprehension laboratory, Explore Minnesota Tourism kiosks,
19.18Minnesota Safety Council, tort claims, driver education programs, Emergency Medical
19.19Services Board, Mississippi River Parkway Commission, payments to MN.IT Services in
19.20excess of actual costs incurred for trunk highway purposes, and personnel costs incurred
19.21on behalf of the Governor's Office do not further a highway purpose and do not aid in the
19.22construction, improvement, or maintenance of the highway system.

19.23    Sec. 3. Minnesota Statutes 2012, section 219.1651, is amended to read:
19.24219.1651 GRADE CROSSING SAFETY ACCOUNT.
19.25A Minnesota grade crossing safety account is created in the special revenue fund,
19.26consisting of money credited to the account by law. Money in the account is appropriated
19.27to the commissioner of transportation for rail-highway grade crossing safety projects
19.28on public streets and highways, including engineering costs. At the discretion of the
19.29commissioner of transportation, money in the account at the end of each fiscal year cancels
19.30 biennium may cancel to the trunk highway fund.

19.31    Sec. 4. Minnesota Statutes 2012, section 473.39, is amended by adding a subdivision
19.32to read:
20.1    Subd. 6. Revenue bonds. (a) In addition to the other authority granted in this
20.2section, the council may, by resolution, authorize the issuance and sale of its revenue
20.3bonds, notes, or other obligations to provide funds to implement the council's transit
20.4capital improvement program and to refund bonds issued under this subdivision.
20.5(b) The bonds shall be sold, issued, and secured in the manner provided in chapter
20.6475 for bonds payable solely from or secured by revenues, and the council shall have the
20.7same powers and duties as a municipality and its governing body in issuing bonds under
20.8that chapter. The bonds shall be payable from and secured by a pledge of all or any part of
20.9revenues receivable from the metropolitan area sales and use tax imposed under section
20.10473.426 and associated investment earning and debt proceeds, shall not and shall state that
20.11they do not represent or constitute a general obligation of the council, and shall not be
20.12included in the net debt limit of any city, county, or other subdivision of the state for the
20.13purpose of any net debt limitation. The bonds will be deemed payable wholly from the
20.14income of revenue-producing conveniences within the meaning of section 475.58. The
20.15proceeds of the bonds may also be used to fund necessary reserves and to pay credit
20.16enhancement fees, issuance costs, and other financing costs during the life of the debt.
20.17(c) The bonds may be secured by a bond resolution, or a trust indenture entered into
20.18by the council with a corporate trustee within or outside the state, which shall define the
20.19revenues and bond proceeds pledged for the payment and security of the bonds. The
20.20pledge shall be a valid charge on the revenues received under section 473.426. Neither the
20.21state, nor any municipality or political subdivision except the council, nor any member or
20.22officer or employee of the council is liable on the obligations. No mortgage or security
20.23interest in any tangible real or personal property shall be granted to the bondholders or the
20.24trustee, but they shall have a valid security interest in the revenues and bond proceeds
20.25received by the council and pledged to the payment of the bonds. In the bond resolution or
20.26trust indenture, the council may make such covenants as it determines to be reasonable for
20.27the protection of the bondholders.

20.28    Sec. 5. [473.426] METROPOLITAN AREA SALES AND USE TAX FOR
20.29TRANSIT.
20.30    Subdivision 1. Authorization; imposition. (a) Notwithstanding any law to the
20.31contrary, the ........... shall impose and maintain a transit sales and use tax at a rate of
20.32one-quarter of one percent on retail sales and uses taxable under chapter 297A that occur
20.33within the metropolitan area.
20.34(b) The tax authorized in this section and the manner in which it is imposed are
20.35exempt from section 297A.99, subdivisions 1, 2, 3, and 12. The provisions of section
21.1297A.99 that relate to imposition, administration, collection, and enforcement apply to
21.2the tax authorized in this section.
21.3(c) The tax authorized in this section shall not be used in determining a tax if doing
21.4so will result in the total tax on lodging in the city of Minneapolis exceeding the maximum
21.5allowed tax under Laws 1986, chapter 396, section 5, as amended in Laws 2001, First
21.6Special Session chapter 5, article 12, section 87, or in determining a tax that may be
21.7imposed under any other limitation.
21.8    Subd. 2. Allocation of revenues. After deductions allowed under section 297A.99,
21.9subdivision 11, the commissioner of revenue shall remit the proceeds of the tax imposed
21.10under this section to the Metropolitan Council on a monthly basis.
21.11    Subd. 3. Uses of tax revenue. Revenues received from the tax imposed under this
21.12section may be used only for the following purposes:
21.13(1) to pay costs of collection;
21.14(2) to pay any principal, interest, or other financing costs on debt issued under
21.15section 473.39, subdivision 6;
21.16(3) to pay operating and capital costs, including planning and project development
21.17costs, of the metropolitan area transit system, including those related to sections 473.371
21.18and 473.449; and
21.19(4) to maintain reserves for the purposes stated in clauses (1) to (3), if doing so is
21.20deemed reasonable and appropriate by the Metropolitan Council.
21.21    Subd. 4. Maintenance of tax. The tax authorized in this section must be maintained
21.22and not terminated other than by legislative enactment.
21.23EFFECTIVE DATE.This section is effective January 1, 2014, and applies to sales
21.24and purchases made after December 31, 2013.

21.25    Sec. 6. Laws 2009, chapter 9, section 1, the effective date, is amended to read:
21.26EFFECTIVE DATE.This section is effective the day following final enactment,
21.27and expires on June 30, 2013 2016.

21.28    Sec. 7. FINANCIAL ASSISTANCE FOR NORTHSTAR COMMUTER RAIL
21.29EXPENSES; GREATER MINNESOTA.
21.30The portion of the cost to provide financial assistance for the Greater Minnesota
21.31Transit component of the Northstar Commuter Rail is exempt from the requirements in
21.32Minnesota Statutes, section 174.24, subdivision 1.
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