HF 2302

as introduced - 89th Legislature (2015 - 2016) Posted on 05/04/2015 03:02pm

A bill for an act
relating to transportation; providing for transportation finance; making
appropriations; allocating certain sales tax revenue; establishing assistance to
certain cities; authorizing sale and issuance of state bonds; amending Minnesota
Statutes 2014, sections 161.088, by adding a subdivision; 297A.815, subdivision
3; 297A.94; proposing coding for new law in Minnesota Statutes, chapter 162.

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

ARTICLE 1

TRANSPORTATION APPROPRIATIONS

Section 1. new text begin DEPARTMENT OF TRANSPORTATION APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Trunk highway fund balance. new text end

new text begin (a) An amount equaling 90 percent of
the unreserved portion of the trunk highway fund balance on June 30, 2016, is appropriated
to the commissioner of transportation in fiscal year 2016 for the construction, maintenance,
or rehabilitation, including pothole repair, of highways, roads, and bridges on the trunk
highway system. This is a onetime appropriation and is available until expended.
new text end

new text begin (b) An amount equaling 90 percent of the unreserved portion of the trunk highway
fund balance on June 30, 2017, is appropriated to the commissioner of transportation in
fiscal year 2017 for the construction, maintenance, or rehabilitation, including pothole
repair, of highways, roads, and bridges on the trunk highway system. This is a onetime
appropriation and is available until expended.
new text end

new text begin (c) An amount equaling 90 percent of the unreserved portion of the trunk highway
fund balance on June 30, 2018, is appropriated to the commissioner of transportation in
fiscal year 2018 for the construction, maintenance, or rehabilitation, including pothole
repair, of highways, roads, and bridges on the trunk highway system. This is a onetime
appropriation and is available until expended.
new text end

new text begin (d) An amount equaling 90 percent of the unreserved portion of the trunk highway
fund balance on June 30, 2019, is appropriated to the commissioner of transportation in
fiscal year 2019 for the construction, maintenance, or rehabilitation, including pothole
repair, of highways, roads, and bridges on the trunk highway system. This is a onetime
appropriation and is available until expended.
new text end

new text begin Subd. 2. new text end

new text begin Budget surplus; local roads. new text end

new text begin $200,000,000 in fiscal year 2016 is
appropriated from the general fund to the commissioner of transportation for the local road
improvement program under Minnesota Statutes, section 174.52, subdivisions 4 and 4a.
This is a onetime appropriation and is available until expended.
new text end

new text begin Subd. 3. new text end

new text begin Corridors of commerce. new text end

new text begin The amount available in the corridors of
commerce account under Minnesota Statutes, section 161.088, in fiscal year 2018 and
fiscal year 2019 is appropriated from the account to the commissioner of transportation
for the corridors of commerce program under that section.
new text end

new text begin Subd. 4. new text end

new text begin Small cities transportation aid. new text end

new text begin The amount available in the small
cities transportation aid account under Minnesota Statutes, section 162.145, in fiscal
year 2018 and fiscal year 2019 is appropriated from the account to the commissioner of
transportation for assistance under that section.
new text end

new text begin Subd. 5. new text end

new text begin Department of Transportation efficiencies. new text end

new text begin (a) In fiscal years 2016 and
2017, the commissioner of transportation shall implement efficiencies identified by the
Transportation Strategic Management and Operations Advisory Task Force report under
Laws 2008, chapter 152, article 6, section 9, equal to 15 percent of the Department of
Transportation's total appropriations for fiscal years 2014 and 2015.
new text end

new text begin (b) The efficiency savings amount identified in paragraph (a) is appropriated to
the commissioner of transportation in fiscal years 2016 and 2017 for the construction,
maintenance, or rehabilitation, including pothole repair, of highways, roads, and bridges on
the trunk highway system. This is a onetime appropriation and is available until expended.
new text end

Sec. 2. new text begin BASE APPROPRIATIONS ADJUSTMENT; DEPARTMENT OF
TRANSPORTATION.
new text end

new text begin Notwithstanding Laws 2013, chapter 117, article 1, sections 3 and 6, or any other
law to the contrary, in fiscal year 2018 and thereafter each base appropriation from the
trunk highway fund is zero and the respective base appropriation from the general fund is
increased by a corresponding amount for the following:
new text end

new text begin (1) freight budget activity;
new text end

new text begin (2) agency management, agency services budget activity; and
new text end

new text begin (3) agency management, buildings budget activity.
new text end

Sec. 3. new text begin BASE APPROPRIATIONS ADJUSTMENT; DEPARTMENT OF
PUBLIC SAFETY.
new text end

new text begin Notwithstanding Laws 2013, chapter 117, article 1, section 5, and Laws 2014,
chapter 312, article 9, section 11, or any other law to the contrary, in fiscal year 2018 and
thereafter each base appropriation from the trunk highway fund is zero and the respective
base appropriation from the general fund is increased by a corresponding amount for
the following:
new text end

new text begin (1) administration and related services, communications budget activity;
new text end

new text begin (2) administration and related services, public safety support budget activity;
new text end

new text begin (3) administration and related services, technology and support services budget
activity;
new text end

new text begin (4) state patrol, patrolling highways budget activity;
new text end

new text begin (5) state patrol, commercial vehicle enforcement budget activity;
new text end

new text begin (6) driver services budget activity; and
new text end

new text begin (7) traffic safety budget activity.
new text end

ARTICLE 2

TRANSPORTATION BONDING

Section 1. new text begin BOND APPROPRIATIONS.
new text end

new text begin The sums shown in the column under "Appropriations" are appropriated from
the bond proceeds account in the trunk highway fund, or another named fund, to the
state agencies or officials indicated, to be spent for public purposes. Appropriations of
bond proceeds must be spent as authorized by the Minnesota Constitution, article XI,
section 5, paragraph (a), to acquire and better public land and buildings and other public
improvements of a capital nature, or as authorized by the Minnesota Constitution, article
XI, section 5, paragraphs (b) to (j), or article XIV. Unless otherwise specified, money
appropriated in this article for a capital program or project may be used to pay state agency
staff costs that are attributed directly to the capital program or project in accordance with
accounting policies adopted by the commissioner of management and budget.
new text end

new text begin SUMMARY new text end
new text begin Department of Transportation new text end	new text begin $ new text end	new text begin 1,650,000,000 new text end
new text begin Department of Management and Budget new text end		new text begin 1,650,000 new text end
new text begin TOTAL new text end	new text begin $ new text end	new text begin 1,651,650,000 new text end

new text begin APPROPRIATIONS new text end

Sec. 2. new text begin DEPARTMENT OF TRANSPORTATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 1,650,000,000 new text end

new text begin To the commissioner of transportation for the
purposes specified in this section.
new text end

new text begin The appropriations in this section cancel as
specified under Minnesota Statutes, section
16A.642, except that the commissioner of
management and budget shall count the start
of authorization for issuance of state bonds
as the first day of the fiscal year during
which the bonds are available to be issued as
specified in each subdivision and not as the
date of enactment of this section.
new text end

new text begin Subd. 2. new text end new text begin Corridors of Commerce Program new text end

new text begin 400,000,000 new text end

new text begin (a) This appropriation is to the commissioner
of transportation for the corridors of
commerce program under Minnesota
Statutes, section 161.088, and is available in
the amounts as follows:
new text end

new text begin (1) $90,000,000 in fiscal year 2016;
new text end

new text begin (2) $150,000,000 in fiscal year 2017;
new text end

new text begin (3) $60,000,000 in fiscal year 2018;
new text end

new text begin (4) $30,000,000 in fiscal year 2023;
new text end

new text begin (5) $50,000,000 in fiscal year 2024; and
new text end

new text begin (6) $20,000,000 in fiscal year 2025.
new text end

new text begin (b) In any fiscal year covered by this
appropriation, the commissioner may
identify projects based on previous selection
processes under the program or may perform
a new selection, provided one of the selected
projects is the freight capacity improvement
to signed Interstate Highway 94 from St.
Michael to St. Cloud expanding the roadway
to three continuous lanes of travel in each
direction.
new text end

new text begin Subd. 3. new text end new text begin Local Road Improvement Program new text end

new text begin 1,000,000,000 new text end

new text begin (a) This appropriation is from the bond
proceeds account in the state transportation
fund for construction and reconstruction
of local roads with statewide or regional
significance under Minnesota Statutes,
section 174.52, subdivision 4, or for grants to
counties to assist in paying the costs of rural
road safety capital improvement projects on
county state-aid highways under Minnesota
Statutes, section 174.52, subdivision 4a.
new text end

new text begin (b) This appropriation is available in fiscal
years 2017 through 2025 in amounts of
$200,000,000 in each odd-numbered year.
new text end

new text begin Subd. 4. new text end new text begin Local Bridge Replacement and Rehabilitation new text end

new text begin 250,000,000 new text end

new text begin (a) This appropriation is from the bond
proceeds account in the state transportation
fund to match federal money and to replace
or rehabilitate local deficient bridges as
provided in Minnesota Statutes, section
174.50.
new text end

new text begin (b) This appropriation is available in fiscal
years 2017 through 2025, in amounts of
$50,000,000 in each odd-numbered year.
new text end

Sec. 3. new text begin BOND SALE EXPENSES new text end

new text begin $ new text end

new text begin 1,650,000 new text end

new text begin This appropriation is to the commissioner
of management and budget for bond
sale expenses under Minnesota Statutes,
sections 16A.641, subdivision 8, and 167.50,
subdivision 4, and is effective through 2025.
new text end

Sec. 4. new text begin BOND SALE AUTHORIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Trunk highway fund. new text end

new text begin To provide the money appropriated in this
article from the bond proceeds account in the trunk highway fund, the commissioner
of management and budget shall sell and issue bonds of the state in an amount up to
$400,400,000 in the manner, upon the terms, and with the effect prescribed by Minnesota
Statutes, sections 167.50 to 167.52, and by the Minnesota Constitution, article XIV, section
11, at the times and in the amounts requested by the commissioner of transportation. The
proceeds of the bonds, except accrued interest and any premium received from the sale of
the bonds, must be deposited in the bond proceeds account in the trunk highway fund.
new text end

new text begin Subd. 2. new text end

new text begin State transportation fund. new text end

new text begin To provide the money appropriated in this
article from the state transportation fund, the commissioner of management and budget
shall sell and issue bonds of the state in an amount up to $1,251,250,000 in the manner,
upon the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to
16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of
the bonds, except accrued interest and any premium received on the sale of the bonds,
must be credited to a bond proceeds account in the state transportation fund.
new text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective July 1, 2015.
new text end

ARTICLE 3

SALES TAXES REALLOCATION

Section 1.

Minnesota Statutes 2014, section 297A.815, subdivision 3, is amended to
read:

Subd. 3.

Motor vehicle lease sales tax revenue.

(a) deleted text begin For purposes of this subdivision,
"net revenue" means an amount equal to the revenues, including interest and penalties,
collected under this section, during the fiscal year; less $32,000,000 in each fiscal year.
deleted text end

deleted text begin (b) deleted text end On or before June 30 of each fiscal year, the commissioner of revenue shall
estimate the amount of deleted text begin the net deleted text end revenue new text begin , including interest and penalties, collected under
this section new text end for the current fiscal year.

deleted text begin (c) deleted text end new text begin (b) new text end On or after July 1 of the subsequent fiscal year, the commissioner of
management and budget shall transfer the deleted text begin net deleted text end revenue as estimated in paragraph deleted text begin (b) deleted text end new text begin (a) new text end
from the general fund, as follows:

(1) deleted text begin $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter deleted text end new text begin
31.5 percent new text end to the county state-aid highway fund. Notwithstanding any other law to
the contrary, the commissioner of transportation shall allocate the funds transferred
under this clause to the counties in the metropolitan area, as defined in section 473.121,
subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall
receive of such amount the percentage that its population, as defined in section 477A.011,
subdivision 3, estimated or established by July 15 of the year prior to the current calendar
year, bears to the total population of the counties receiving funds under this clause; deleted text begin and
deleted text end

(2) deleted text begin the remainder deleted text end new text begin 34.5 percent new text end to the greater Minnesota transit account new text begin ; and
new text end

new text begin (3) 34 percent to the highway user tax distribution fund new text end .

new text begin (c) The revenues deposited under this subdivision do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section
297A.62, subdivision 1a, which must be deposited as provided under the Minnesota
Constitution, article XI, section 15.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for allocations made on or after
July 1, 2017.
new text end

Sec. 2.

Minnesota Statutes 2014, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for
the construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment
was made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of management and budget shall certify to the commissioner the date
on which the project received the conditional commitment. The amount deposited in
the loan guaranty account must be reduced by any refunds and by the costs incurred by
the Department of Revenue to administer and enforce the assessment and collection of
the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties,
derived from the taxes imposed on sales and purchases included in section 297A.61,
subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them
as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) new text begin The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 1, in the state treasury and credit them to the
general fund. Beginning in fiscal year 2018, by July 15 of each year, the commissioner
shall transfer from the general fund to the highway user tax distribution fund an amount
equal to the revenues collected under this paragraph for the previous calendar year.
new text end

new text begin (e) new text end The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5, for the previous calendar year.

new text begin (f) By July 15 of each year, the commissioner shall transfer from the general fund to
the small cities transportation aid account under section 162.145 an amount equal to the
estimated revenues, including interest and penalties, collected under the tax rate imposed
under section 297A.62, subdivision 1, on the sale or purchase of rental motor vehicles
subject to section 297A.64 during the previous calendar year. The commissioner shall
estimate the amount of total sales tax revenues transferred under this paragraph based on
the amount of revenue deposited in paragraph (d).
new text end

new text begin (g) Beginning in fiscal year 2018, by July 15 of each year, the commissioner shall
transfer from the general fund to the corridors of commerce account in the trunk highway
fund an amount equal to the estimated revenues, including interest and penalties, collected
in tax from the sale or purchase of motor vehicle repair and replacement parts. Beginning
June 30, 2016, and by June 30 of every fourth year thereafter, the commissioner will
estimate the percentage of total sales tax revenues collected in the previous calendar year
that is attributable to sales and purchases of motor vehicle parts based on federal data and
department consumption models. The amount of sales tax revenue to be transferred to the
corridors of commerce account on each July 15 is equal to the most recently calculated
percentage estimate under this paragraph multiplied by the total sales tax revenues
collected in the previous calendar year. For purposes of this paragraph, "motor vehicle"
has the meaning given in section 297B.01, subdivision 11, and "motor vehicle repair
and replacement parts" includes:
new text end

new text begin (1) all parts, tires, accessories, and equipment incorporated into or affixed to the
motor vehicle as part of the motor vehicle maintenance or repair; and
new text end

new text begin (2) paint, oil, and other fluids that remain on or in the motor vehicle as part of the
motor vehicle maintenance or repair.
new text end

deleted text begin (e) deleted text end new text begin (h) new text end 72.43 percent of the revenues, including interest and penalties, transmitted
to the commissioner under section 297A.65, must be deposited by the commissioner
in the state treasury as follows:

(1) 50 percent of the receipts must be deposited in the heritage enhancement account
in the game and fish fund, and may be spent only on activities that improve, enhance, or
protect fish and wildlife resources, including conservation, restoration, and enhancement
of land, water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and
may be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and
may be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants; and

(5) two percent of the receipts must be deposited in the natural resources fund,
and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and
Conservatory, and the Duluth Zoo.

deleted text begin (f) deleted text end new text begin (i) new text end The revenue dedicated under paragraph deleted text begin (e) deleted text end new text begin (h) new text end may not be used as a substitute
for traditional sources of funding for the purposes specified, but the dedicated revenue
shall supplement traditional sources of funding for those purposes. Land acquired with
money deposited in the game and fish fund under paragraph deleted text begin (e) deleted text end new text begin (h) new text end must be open to public
hunting and fishing during the open season, except that in aquatic management areas or
on lands where angling easements have been acquired, fishing may be prohibited during
certain times of the year and hunting may be prohibited. At least 87 percent of the money
deposited in the game and fish fund for improvement, enhancement, or protection of fish
and wildlife resources under paragraph deleted text begin (e) deleted text end new text begin (h) new text end must be allocated for field operations.

deleted text begin (g) deleted text end new text begin (j) new text end The revenues deposited under paragraphs (a) to deleted text begin (f) deleted text end new text begin (i) new text end do not include the
revenues, including interest and penalties, generated by the sales tax imposed under
section 297A.62, subdivision 1a, which must be deposited as provided under the
Minnesota Constitution, article XI, section 15.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015, and applies for revenues
collected in fiscal year 2015 and thereafter.
new text end

ARTICLE 4

TRANSPORTATION FINANCE

Section 1.

Minnesota Statutes 2014, section 161.088, is amended by adding a
subdivision to read:

new text begin Subd. 2a. new text end

new text begin Corridors of commerce account. new text end

new text begin A corridors of commerce account is
established in the trunk highway fund. The account consists of funds as provided under
section 297A.94 and any other money donated, allotted, transferred, or otherwise provided
to the account. Money in the account may only be expended on a trunk highway project
as provided under this section.
new text end

Sec. 2.

new text begin [162.145] SMALL CITIES TRANSPORTATION AID.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given them.
new text end

new text begin (b) "Adjusted road miles" means the lesser of:
new text end

new text begin (1) 30; or
new text end

new text begin (2) the centerline miles of a city's municipal streets.
new text end

new text begin (c) "Eligible city" means a statutory or home rule charter city that does not receive
municipal state aid under sections 162.09 to 162.14 in the calendar year in which funds
are distributed under this section.
new text end

new text begin (d) "Minimum aid" means the lesser of:
new text end

new text begin (1) $2,500; or
new text end

new text begin (2) the total amount available under this section in a fiscal year, multiplied by
0.000125.
new text end

new text begin (e) "Per capita maximum" means 40 multiplied by the population of a city.
new text end

new text begin (f) "Population" means the population estimated or established as of 30 days before
the date of an allocation under subdivision 4 by the most recent date, based on the stated
date of the count or estimate, of:
new text end

new text begin (1) the most recent federal census;
new text end

new text begin (2) a special census conducted under contract with the United States Bureau of
the Census;
new text end

new text begin (3) a population estimate made by the Metropolitan Council under section 473.24; or
new text end

new text begin (4) a population estimate of the state demographer made under section 4A.02.
new text end

new text begin Subd. 2. new text end

new text begin Small cities transportation aid account. new text end

new text begin A small cities transportation aid
account is created in the special revenue fund. The account consists of funds as provided
by law and any other money donated, allotted, transferred, or otherwise provided to the
account. Money in the account may only be expended as provided under this section.
new text end

new text begin Subd. 3. new text end

new text begin Administration. new text end

new text begin Subject to funds made available by law specifically
under this section, the commissioner shall allocate all funds in a fiscal year as provided
in subdivision 4 and shall make payments to cities in two installments on July 20 and
December 26.
new text end

new text begin Subd. 4. new text end

new text begin Distribution formula. new text end

new text begin (a) In each year funds are available under this
section, the commissioner shall allocate to each eligible city an amount that is equal to
the greater of:
new text end

new text begin (1) the minimum aid; or
new text end

new text begin (2) the lesser of:
new text end

new text begin (i) an aid factor, multiplied by the city's adjusted road miles; or
new text end

new text begin (ii) the per capita maximum.
new text end

new text begin (b) The commissioner shall set the aid factor, which must be the same for all eligible
cities, so that the total funds allocated under this subdivision equals the total amount
available for the fiscal year.
new text end

new text begin Subd. 5. new text end

new text begin Use of funds. new text end

new text begin (a) Funds distributed under this section are available only for
construction and maintenance of roads located within the city, including:
new text end

new text begin (1) land acquisition, environmental analysis, design, engineering, construction,
reconstruction, and maintenance;
new text end

new text begin (2) road projects partially located within the city;
new text end

new text begin (3) projects on county state-aid highways located within the city; and
new text end

new text begin (4) cost participation on road projects under the jurisdiction of another unit of
government.
new text end

new text begin (b) Funds distributed under this section are not subject to state-aid requirements
under this chapter, including but not limited to engineering standards adopted by the
commissioner in rules.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end