HF 1255

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to transportation; providing for 
  1.3             apportionment of the county state-aid highway fund; 
  1.4             increasing motor fuel tax and providing for additional 
  1.5             motor fuel taxes to provide money for trunk highway 
  1.6             bond debt service; authorizing ten-year imposition of 
  1.7             one-half cent sales tax for transportation in certain 
  1.8             counties if authorized in a regional referendum; 
  1.9             creating major local projects account in the local 
  1.10            road improvement fund; authorizing sale of state 
  1.11            bonds; making technical and clarifying changes; 
  1.12            appropriating money; amending Minnesota Statutes 2002, 
  1.13            sections 162.07, subdivision 1, by adding 
  1.14            subdivisions; 174.52, subdivision 5, by adding a 
  1.15            subdivision; 296A.07, subdivisions 3, 4, by adding a 
  1.16            subdivision; 296A.08; proposing coding for new law as 
  1.17            Minnesota Statutes, chapter 473J.  
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19                             ARTICLE 1
  1.20                  COUNTY STATE-AID HIGHWAY SYSTEM
  1.21     Section 1.  Minnesota Statutes 2002, section 162.07, 
  1.22  subdivision 1, is amended to read: 
  1.23     Subdivision 1.  [FORMULA.] (a) After deducting for 
  1.24  administrative costs and for the disaster account and research 
  1.25  account and state park roads as heretofore provided in section 
  1.26  162.06, subdivisions 2 through 5, the remainder of the total sum 
  1.27  provided for in section 162.06, subdivision 1, shall be is 
  1.28  identified as the apportionment sum and the excess sum.  shall 
  1.29  be apportioned by the commissioner to the several counties on 
  1.30  the basis of the needs of the counties as determined in 
  1.31  accordance with the following formula: 
  2.1      (a) An amount equal to ten percent of the apportionment sum 
  2.2   shall be apportioned equally among the 87 counties.  
  2.3      (b) An amount equal to ten percent of the apportionment sum 
  2.4   shall be apportioned among the several counties so that each 
  2.5   county shall receive of such amount the percentage that its 
  2.6   motor vehicle registration for the calendar year preceding the 
  2.7   one last past, determined by residence of registrants, bears to 
  2.8   the total statewide motor vehicle registration.  
  2.9      (c) An amount equal to 30 percent of the apportionment sum 
  2.10  shall be apportioned among the several counties so that each 
  2.11  county shall receive of such amount the percentage that its 
  2.12  total lane-miles of approved county state-aid highways bears to 
  2.13  the total lane-miles of approved statewide county state-aid 
  2.14  highways.  In 1997 and subsequent years no county may receive, 
  2.15  as a result of an apportionment under this clause based on 
  2.16  lane-miles rather than miles of approved county state-aid 
  2.17  highways, an apportionment that is less than its apportionment 
  2.18  in 1996. 
  2.19     (d) An amount equal to 50 percent of the apportionment sum 
  2.20  shall be apportioned among the several counties so that each 
  2.21  county shall receive of such amount the percentage that its 
  2.22  money needs bears to the sum of the money needs of all of the 
  2.23  individual counties; provided, that the percentage of such 
  2.24  amount that each county is to receive shall be adjusted so that 
  2.25  each county shall receive in 1958 a total apportionment at least 
  2.26  ten percent greater than its total 1956 apportionments from the 
  2.27  state road and bridge fund; and provided further that those 
  2.28  counties whose money needs are thus adjusted shall never receive 
  2.29  a percentage of the apportionment sum less than the percentage 
  2.30  that such county received in 1958.  
  2.31     (b) For purposes of this section and section 162.07: 
  2.32     (1) the "excess sum" is the money available for 
  2.33  apportionment to the counties that is attributable to motor fuel 
  2.34  tax rates under section 296A.07, subdivision 3, and 296A.08, 
  2.35  subdivision 2, that are in excess of the rates for the taxes 
  2.36  under those provisions that were in effect on January 1, 2003; 
  3.1   and 
  3.2      (2) the "apportionment sum" is the total sum less the 
  3.3   excess sum. 
  3.4      Sec. 2.  Minnesota Statutes 2002, section 162.07, is 
  3.5   amended by adding a subdivision to read: 
  3.6      Subd. 1a.  [APPORTIONMENT SUM.] The commissioner shall 
  3.7   apportion the apportionment sum to the several counties on the 
  3.8   basis of the needs of the counties as determined in accordance 
  3.9   with the following formula: 
  3.10     (a) An amount equal to ten percent of the apportionment sum 
  3.11  must be apportioned equally among the 87 counties.  
  3.12     (b) An amount equal to ten percent of the apportionment sum 
  3.13  must be apportioned among the several counties so that each 
  3.14  county receives of that amount the percentage that its motor 
  3.15  vehicle registration for the calendar year preceding the one 
  3.16  last past, determined by residence of registrants, bears to the 
  3.17  total statewide motor vehicle registration.  
  3.18     (c) An amount equal to 30 percent of the apportionment sum 
  3.19  must be apportioned among the several counties so that each 
  3.20  county receives of that amount the percentage that its total 
  3.21  lane-miles of approved county state-aid highways bears to the 
  3.22  total lane-miles of approved statewide county state-aid 
  3.23  highways.  In 1997 and subsequent years no county may receive, 
  3.24  as a result of an apportionment under this paragraph based on 
  3.25  lane-miles rather than miles of approved county state-aid 
  3.26  highways, an apportionment that is less than its apportionment 
  3.27  in 1996. 
  3.28     (d) An amount equal to 50 percent of the apportionment sum 
  3.29  must be apportioned among the several counties so that each 
  3.30  county receives of that amount the percentage that its money 
  3.31  needs bears to the sum of the money needs of all of the 
  3.32  individual counties; provided, that the percentage of the amount 
  3.33  that each county is to receive must be adjusted so that each 
  3.34  county receives in 1958 a total apportionment at least ten 
  3.35  percent greater than its total 1956 apportionments from the 
  3.36  state road and bridge fund; and provided further, that those 
  4.1   counties whose money needs are thus adjusted shall never receive 
  4.2   a percentage of the apportionment sum less than the percentage 
  4.3   that such county received in 1958.  
  4.4      Sec. 3.  Minnesota Statutes 2002, section 162.07, is 
  4.5   amended by adding a subdivision to read: 
  4.6      Subd. 1b.  [EXCESS SUM.] The commissioner shall apportion 
  4.7   the excess sum to the several counties on the basis of the needs 
  4.8   of the counties as determined in accordance with the following 
  4.9   formula: 
  4.10     (a) An amount equal to ... percent of the excess sum must 
  4.11  be apportioned equally among the 87 counties. 
  4.12     (b) An amount equal to ... percent of the apportionment sum 
  4.13  must be apportioned among the several counties so that each 
  4.14  county receives of that amount the percentage that its total 
  4.15  lane-miles of approved county state-aid highways bears to the 
  4.16  total lane-miles of approved statewide county state-aid highways.
  4.17     (c) An amount equal to ... percent of the excess sum must 
  4.18  be apportioned among the several counties so that each county 
  4.19  receives of that amount the percentage that its population bears 
  4.20  to the total population of the state. 
  4.21     (d) An amount equal to ... percent of the apportionment sum 
  4.22  must be apportioned among the several counties so that each 
  4.23  county shall receive of that amount the percentage that its 
  4.24  motor vehicle registration for the calendar year preceding the 
  4.25  one last past, determined by residence of registrants, bears to 
  4.26  the total statewide motor vehicle registration.  
  4.27     (e) An amount equal to 50 percent of the excess sum must be 
  4.28  apportioned among the several counties so that each county 
  4.29  receives of that amount the percentage that its money needs 
  4.30  bears to the sum of the money needs of all of the individual 
  4.31  counties. 
  4.32     Sec. 4.  [EFFECTIVE DATE.] 
  4.33     Sections 1 to 3 are effective July 1, 2003.  
  4.34                             ARTICLE 2
  4.35                          MOTOR FUEL TAXES
  4.36     Section 1.  Minnesota Statutes 2002, section 296A.07, 
  5.1   subdivision 3, is amended to read: 
  5.2      Subd. 3.  [RATE OF TAX.] The gasoline excise tax is imposed 
  5.3   at the following rates: 
  5.4      (1) E85 is taxed at the rate of 14.2 19.9 cents per gallon; 
  5.5      (2) M85 is taxed at the rate of 11.4 16 cents per gallon; 
  5.6   and 
  5.7      (3) all other gasoline is taxed at the rate of 20 28 cents 
  5.8   per gallon. 
  5.9      Sec. 2.  Minnesota Statutes 2002, section 296A.07, is 
  5.10  amended by adding a subdivision to read: 
  5.11     Subd. 3a.  [ADDITIONAL TAX] (a) An additional tax is 
  5.12  imposed on gasoline in addition to taxes imposed under 
  5.13  subdivision 3, to be determined as provided in paragraph (b).  
  5.14  Proceeds from the additional tax that are deposited in the trunk 
  5.15  highway fund must be credited to a bond repayment account. 
  5.16     (b) On March 1 of each year the commissioner of revenue 
  5.17  shall determine the amount of additional tax on gasoline needed 
  5.18  in the next fiscal year to provide an amount of revenue to the 
  5.19  trunk highway fund that, when combined with revenue from the 
  5.20  additional tax on special fuel under section 296A.08, 
  5.21  subdivision 2a, will be equal to payments to be made from the 
  5.22  bond repayment account in the trunk highway fund for principal 
  5.23  and interest on bonds issued under section 5 due in that fiscal 
  5.24  year.  The additional tax determined under this subdivision must 
  5.25  be added to taxes imposed under subdivision 3 and collected in 
  5.26  the same manner as those taxes.  The additional tax is effective 
  5.27  on June 1 of each year and applies to all gasoline in 
  5.28  distributor storage on that date. 
  5.29     Sec. 3.  Minnesota Statutes 2002, section 296A.07, 
  5.30  subdivision 4, is amended to read: 
  5.31     Subd. 4.  [EXEMPTIONS.] The provisions of 
  5.32  subdivision subdivisions 1 and 3a do not apply to gasoline 
  5.33  purchased by: 
  5.34     (1) a transit system or transit provider receiving 
  5.35  financial assistance or reimbursement under section 174.24, 
  5.36  256B.0625, subdivision 17, or 473.384; or 
  6.1      (2) an ambulance service licensed under chapter 144E. 
  6.2      Sec. 4.  Minnesota Statutes 2002, section 296A.08, is 
  6.3   amended to read: 
  6.4      296A.08 [SPECIAL FUEL TAX.] 
  6.5      Subdivision 1.  [TAX IMPOSED.] There is imposed an excise 
  6.6   tax on all special fuel at the rates specified in subdivision 
  6.7   2.  For purposes of this section, "owner or operator" means 
  6.8   refers to the operation of licensed motor vehicles, whether 
  6.9   loaded or empty, whether for compensation or not for 
  6.10  compensation, and whether owned by or leased to the motor 
  6.11  carrier who operates them or causes them to be operated. 
  6.12     (a) For undyed diesel fuel and undyed kerosene, the tax is 
  6.13  imposed on the first licensed distributor who received the 
  6.14  product in Minnesota. 
  6.15     (b) For dyed fuel being used illegally in a licensed motor 
  6.16  vehicle, the tax is imposed on the owner or operator of the 
  6.17  motor vehicle. 
  6.18     (c) For dyed fuel used in a motor vehicle but subject to a 
  6.19  federal exemption, although no federal tax may be imposed, the 
  6.20  owner or operator of the vehicle is liable for the state tax. 
  6.21     (d) For other fuels, including jet fuel, propane, and 
  6.22  compressed natural gas, the tax is imposed on the distributor, 
  6.23  special fuel dealer, or bulk purchaser. 
  6.24     (e) Any person delivering special fuel on which the excise 
  6.25  tax has not previously been paid, into the supply tank of an 
  6.26  aircraft or a licensed motor vehicle shall report such the 
  6.27  delivery and shall pay, or collect and pay the excise tax on the 
  6.28  special fuel so delivered to the commissioner. 
  6.29     Subd. 2.  [RATE OF TAX.] The special fuel excise tax is 
  6.30  imposed at the following rates: 
  6.31     (1) Liquefied petroleum gas or propane is taxed at the rate 
  6.32  of 15 21 cents per gallon. 
  6.33     (2) Liquefied natural gas is taxed at the rate of 12 16.8 
  6.34  cents per gallon. 
  6.35     (3) Compressed natural gas is taxed at the rate 
  6.36  of $1.739 $2.435 per thousand cubic feet; or 20 28 cents per 
  7.1   gasoline equivalent, as defined by the National Conference on 
  7.2   Weights and Measures, which is 5.66 pounds of natural gas. 
  7.3      (4) All other special fuel is taxed at the same rate as the 
  7.4   gasoline excise tax as specified in section 296A.07, subdivision 
  7.5   2.  The tax is payable in the form and manner prescribed by the 
  7.6   commissioner. 
  7.7      Subd. 2a.  [ADDITIONAL TAX.] (a) An additional tax is 
  7.8   imposed on special fuel in addition to taxes imposed under 
  7.9   subdivision 2.  Proceeds from the additional tax that are 
  7.10  deposited in the trunk highway fund must be credited to a bond 
  7.11  repayment account. 
  7.12     (b) On March 1 of each year, the commissioner of revenue 
  7.13  shall determine the amount of additional tax on special fuel 
  7.14  needed in the next fiscal year to provide an amount of revenue 
  7.15  to the bond repayment account in the trunk highway fund that, 
  7.16  when combined with revenue from the additional tax on gasoline 
  7.17  under section 296A.07, subdivision 3a, will be equal to payments 
  7.18  to be made from the bond repayment account in the trunk highway 
  7.19  fund for principal and interest on bonds issued under section 5 
  7.20  due that fiscal year.  The additional tax determined under this 
  7.21  subdivision must be added to the taxes imposed under subdivision 
  7.22  2 and collected in the same manner as those taxes.  The 
  7.23  additional tax is effective on June 1 of each year. 
  7.24     Subd. 3.  [EXEMPTIONS.] The provisions of subdivisions 
  7.25  1 and, 2, and 2a do not apply to special fuel or alternative 
  7.26  fuels purchased by: 
  7.27     (1) a transit system or transit provider receiving 
  7.28  financial assistance or reimbursement under section 174.24, 
  7.29  256B.0625, subdivision 17, or 473.384; or 
  7.30     (2) an ambulance service licensed under chapter 144E.  
  7.31     Subd. 4.  [TAX IMPOSED ON USE.] If it is determined by the 
  7.32  commissioner from an examination of any records pertaining to 
  7.33  the operation of any licensed motor vehicle which that uses 
  7.34  special fuel, that the special fuel tax on the special fuel used 
  7.35  in this state has not been paid to this state, or to any other 
  7.36  state if purchased in such other state, there is hereby 
  8.1   imposed on all such special fuel (1) an excise tax at the same 
  8.2   rate per gallon as the gasoline tax, on all such special fuel 
  8.3   and (2) an additional tax at the same rate per gallon as the 
  8.4   additional tax on special fuel under subdivision 2a.  All 
  8.5   assessments of tax made under this subdivision shall must be 
  8.6   paid by the user to the commissioner upon demand.  For purposes 
  8.7   of this subdivision, "special fuel" means any fuel other than 
  8.8   gasoline used in a licensed motor vehicle in this state. 
  8.9      Subd. 5.  [INTENDED USE.] All special fuel except that used 
  8.10  for aviation fuel shall be is deemed to be intended for use in a 
  8.11  licensed motor vehicle in this state at the time of sale or 
  8.12  delivery. 
  8.13     Subd. 6.  [LIABILITY FOR FAILURE TO KEEP ADEQUATE RECORDS.] 
  8.14  If adequate records are not kept, or if the sales are not 
  8.15  adequately accounted for, then all sales of combustible gases 
  8.16  and liquid petroleum products, except gasoline, are deemed to be 
  8.17  sales of special fuel.  In such cases, there is imposed (1) an 
  8.18  excise tax of the same rate per gallon as the gasoline excise 
  8.19  tax, and (2) an additional tax at the same rate per gallon as 
  8.20  the additional tax on special fuel under subdivision 2a, on all 
  8.21  such products, and the vendor is liable for the tax. 
  8.22     Sec. 5.  [BOND SALE AUTHORIZATION.] 
  8.23     The commissioner of finance shall sell and issue bonds of 
  8.24  the state in an amount up to $1,240,000,000 in the manner, upon 
  8.25  the terms, and with the effect prescribed by Minnesota Statutes, 
  8.26  sections 167.50 to 167.52, and by the Minnesota Constitution, 
  8.27  article XIV, section 11, at the times and in the amounts 
  8.28  requested by the commissioner of transportation.  The proceeds 
  8.29  of the bonds, except accrued interest and any premium received 
  8.30  on the sale of the bonds, must be credited to the bond proceeds 
  8.31  account in the trunk highway fund.  Payment of principal and 
  8.32  interest on the bonds must be made from the bond repayment 
  8.33  account in the trunk highway fund. 
  8.34     Sec. 6.  [APPROPRIATIONS.] 
  8.35     Subdivision 1.  [TRUNK HIGHWAY FUND.] (a) $248,000,000 is 
  8.36  appropriated from the bond proceeds account in the trunk highway 
  9.1   fund to the commissioner of transportation in each of fiscal 
  9.2   years 2004, 2005, 2006, 2007, and 2008 for trunk highway 
  9.3   improvements. 
  9.4      (b) $149,130,000 is appropriated from the trunk highway 
  9.5   fund to the commissioner of transportation in fiscal year 2004 
  9.6   for trunk highway improvements. 
  9.7      (c) $26,176,000 is appropriated from the bond repayment 
  9.8   account in the trunk highway fund to the commissioner of 
  9.9   transportation for fiscal year 2004 for payment of principal and 
  9.10  interest on bonds issued under section 5. 
  9.11     Subd. 2.  [COUNTY STATE-AID HIGHWAY FUND.] (a) $81,998,000 
  9.12  is appropriated from the county state-aid highway fund to the 
  9.13  commissioner of transportation in fiscal year 2004, for 
  9.14  apportionment to the counties in the same manner as under 
  9.15  Minnesota Statutes, sections 162.07 and 162.08. 
  9.16     (b) $14,881,000 is appropriated from the county state-aid 
  9.17  highway fund to the commissioner of transportation in fiscal 
  9.18  year 2004 for distribution under Minnesota Statutes, section 
  9.19  161.081, subdivision 1. 
  9.20     Subd. 3.  [MUNICIPAL STATE-AID STREET FUND.] $25,447,604 is 
  9.21  appropriated from the municipal state-aid street fund to the 
  9.22  commissioner of transportation for fiscal year 2004, for 
  9.23  apportionment in the same manner as under Minnesota Statutes, 
  9.24  sections 162.09 to 162.14. 
  9.25     Sec. 7.  [TRANSITION.] 
  9.26     (a) Notwithstanding sections 2 and 4: 
  9.27     (1) the date on which the commissioner of revenue shall 
  9.28  determine the amount of additional tax on gasoline and special 
  9.29  fuel under those sections that will be imposed in fiscal year 
  9.30  2004 is July 1, 2003; and 
  9.31     (2) the date on which the additional tax determined under 
  9.32  clause (1) is effective is September 1, 2003. 
  9.33     (b) The additional tax on gasoline that becomes effective 
  9.34  on September 1, 2003, applies to all gasoline in distributor 
  9.35  storage on that date. 
  9.36     Sec. 8.  [EFFECTIVE DATE.] 
 10.1      Sections 1 to 7 are effective July 1, 2003.  
 10.2                              ARTICLE 3
 10.3                     METROPOLITAN TRANSPORTATION
 10.4      Section 1.  [473J.01] [METROPOLITAN TRANSPORTATION AREA.] 
 10.5      The metropolitan transportation area is the area within the 
 10.6   counties of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, 
 10.7   Ramsey, Scott, Sherburne, Washington, and Wright. 
 10.8      Sec. 2.  [473J.02] [HIGHWAY SPENDING IN METROPOLITAN 
 10.9   TRANSPORTATION AREA.] 
 10.10     In any year during the period of imposition of the taxes 
 10.11  authorized in sections 473J.03 and 473J.04, and exclusive of the 
 10.12  expenditure of these revenues, the percentage of total trunk 
 10.13  highway fund expenditures attributable to projects in the 
 10.14  metropolitan transportation area may not vary more than two 
 10.15  percentage points from the average of the previous five years of 
 10.16  trunk highway fund metropolitan transportation area expenditures.
 10.17     Sec. 3.  [473J.03] [SALES TAX.] 
 10.18     There is imposed a sales and use tax of one-half of one 
 10.19  percent on retail sales and uses taxable under chapter 297A that 
 10.20  occur in the metropolitan transportation area.  This tax is in 
 10.21  addition to the taxes imposed by sections 297A.62, subdivision 
 10.22  1, and 297A.63, subdivision 1. 
 10.23     Sec. 4.  [473J.04] [MOTOR VEHICLE EXCISE TAX.] 
 10.24     There is imposed an excise tax of $20 per motor vehicle 
 10.25  purchased by a retail consumer from any person engaged within 
 10.26  the metropolitan transportation area in the business of selling 
 10.27  motor vehicles at retail. 
 10.28     Sec. 5.  [473J.05] [TAX COLLECTION.] 
 10.29     The taxes imposed by sections 473J.03 and 473J.04 must be 
 10.30  reported and paid to the commissioner of revenue with the taxes 
 10.31  imposed by chapter 297A and in accordance with an agreement 
 10.32  between the counties in the metropolitan transportation area and 
 10.33  the commissioner of revenue.  The taxes are subject to the same 
 10.34  interest, penalty, and other provisions provided for sales and 
 10.35  use taxes under chapters 289A and 297A.  The commissioner has 
 10.36  the same powers to assess and collect the taxes as are given the 
 11.1   commissioner in chapters 270, 289A, and 297A to assess and 
 11.2   collect sales and use taxes.  The commissioner shall deposit the 
 11.3   revenues, including interest and penalties, derived from the 
 11.4   taxes in the state treasury and credit them to the general fund. 
 11.5      Sec. 6.  [473J.06] [METROPOLITAN TRANSPORTATION FUND.] 
 11.6      Subdivision 1.  [TRANSFER TO FUND.] (a) The revenue 
 11.7   collected under section 473J.05, less the cost of collection, is 
 11.8   appropriated from the general fund to the commissioner of 
 11.9   finance for transfer to a special account in the state treasury, 
 11.10  to be called the metropolitan transportation fund.  
 11.11     (b) The cost of collection equals the direct and indirect 
 11.12  costs of the department of revenue to administer, audit, and 
 11.13  collect the revenue, plus the metropolitan transportation area's 
 11.14  proportionate share of the indirect cost of administering all 
 11.15  local sales and use taxes under section 297A.99. 
 11.16     Subd. 2.  [USE OF FUND.] (a) Money in the metropolitan 
 11.17  transportation fund is appropriated as follows: 
 11.18     (1) 25 percent to the metropolitan council for acquisition 
 11.19  of buses, highway shoulder improvements for buses, and other 
 11.20  capital expenses related to transit in the metropolitan 
 11.21  transportation area; and 
 11.22     (2) 75 percent to the commissioner of transportation for 
 11.23  highway system improvement, replacement, and bottleneck-removal 
 11.24  projects and metropolitan system highway expansion projects in 
 11.25  the metropolitan transportation area.  This money must be used 
 11.26  to construct the projects identified in the metropolitan 
 11.27  council's 25-year plan and the department of transportation's 
 11.28  20-year district plans that cover the counties in the 
 11.29  metropolitan transportation area. 
 11.30     (b) The metropolitan council may provide grants to the 
 11.31  commissioner of transportation for the implementation of transit 
 11.32  capital improvements in counties that are outside of the 
 11.33  metropolitan area as defined in section 473.121, subdivision 2, 
 11.34  but are within the metropolitan transportation area. 
 11.35     Sec. 7.  [APPLICATION.] 
 11.36     This article applies in the counties of Anoka, Carver, 
 12.1   Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, 
 12.2   Washington, and Wright. 
 12.3      Sec. 8.  [EFFECTIVE DATE; BALLOT QUESTION; EXPIRATION.] 
 12.4      (a) This article is effective upon its approval by a 
 12.5   majority of the voters voting on the question in the 
 12.6   metropolitan transportation area at the general election in 
 12.7   November 2003 and sections 3 and 4 apply to sales made on and 
 12.8   after July 1, 2004.  The question on the ballot must be: 
 12.9      "Shall an additional tax of up to one-half of one percent 
 12.10  be imposed for ten years on sales in the 11-county metropolitan 
 12.11  area to pay for transportation improvements to relieve traffic 
 12.12  congestion in the metropolitan area? 
 12.13                                     Yes .......
 12.14                                     No ........"
 12.15     (b) This article expires June 30, 2014. 
 12.16                             ARTICLE 4
 12.17                    TRANSPORTATION IMPROVEMENTS
 12.18  Section 1.  [CAPITAL IMPROVEMENT APPROPRIATIONS.] 
 12.19     The sums in the column under "APPROPRIATIONS" are 
 12.20  appropriated from the bond proceeds fund, or another named fund, 
 12.21  to the state agencies indicated, to be spent for public 
 12.22  purposes.  Appropriations of bond proceeds must be spent as 
 12.23  authorized by the Minnesota Constitution, article XI, section 5, 
 12.24  paragraph (a), to acquire and better public land and buildings 
 12.25  and other public improvements of a capital nature, or as 
 12.26  authorized by article XI, section 5, paragraphs (b) through (j), 
 12.27  or article XIV. 
 12.28                              SUMMARY 
 12.29  TRANSPORTATION                                      781,000,000 
 12.30  BOARD OF WATER AND SOIL RESOURCES                     2,700,000 
 12.31                                                    APPROPRIATIONS
 12.32  Sec. 2.  DEPARTMENT OF TRANSPORTATION               781,000,000 
 12.33  Subdivision 1.  Local Bridge 
 12.34  Replacement and Rehabilitation                       20,000,000
 12.35  This appropriation is from the bond 
 12.36  proceeds account in the state 
 12.37  transportation fund as provided in 
 12.38  Minnesota Statutes, section 174.50, to 
 13.1   match federal money and to replace or 
 13.2   rehabilitate local deficient bridges.  
 13.3   Political subdivisions may use grants 
 13.4   made under this section to construct or 
 13.5   reconstruct bridges, including: 
 13.6   (1) matching federal-aid grants to 
 13.7   construct or reconstruct key bridges; 
 13.8   (2) paying the costs of preliminary 
 13.9   engineering and environmental studies 
 13.10  authorized under Minnesota Statutes, 
 13.11  section 174.50, subdivision 6a; 
 13.12  (3) paying the costs to abandon an 
 13.13  existing bridge that is deficient and 
 13.14  in need of replacement, but where no 
 13.15  replacement will be made; and 
 13.16  (4) paying the costs to construct a 
 13.17  road or street to facilitate the 
 13.18  abandonment of an existing bridge 
 13.19  determined by the commissioner to be 
 13.20  deficient, if the commissioner 
 13.21  determines that construction of the 
 13.22  road or street is more cost-efficient 
 13.23  than the replacement of the existing 
 13.24  bridge.  
 13.25  Subd. 2.  Town Road Sign Replacement                  1,000,000 
 13.26  For grants to political subdivisions to 
 13.27  pay the local share of costs of town 
 13.28  road sign replacement under the Federal 
 13.29  Highway Administration's hazard 
 13.30  elimination program.  Grants under this 
 13.31  subdivision may only be used for the 
 13.32  purchase of signs that conform to the 
 13.33  commissioner of transportation's 
 13.34  uniform manual of traffic control 
 13.35  devices, including applicable 
 13.36  reflective sheeting requirements, and 
 13.37  that have a useful life of at least 20 
 13.38  years. 
 13.39  Subd. 3.  Local Road Improvement Program            760,000,000 
 13.40  The commissioner shall credit this 
 13.41  amount to the major local projects 
 13.42  account in the local road improvement 
 13.43  fund. 
 13.44  Sec. 3.  BOARD OF WATER AND 
 13.45  SOIL RESOURCES                                        2,700,000
 13.46  This appropriation is to acquire land 
 13.47  for wetlands or restore wetlands to be 
 13.48  used to replace wetlands drained or 
 13.49  filled as a result of the repair, 
 13.50  maintenance, or rehabilitation of 
 13.51  existing public roads as required by 
 13.52  Minnesota Statutes, section 103G.222, 
 13.53  subdivision 1, paragraph (l). The 
 13.54  purchase price paid for acquisition of 
 13.55  land, fee, or perpetual easement must 
 13.56  be the fair market value as determined 
 13.57  by the board.  The board may enter into 
 13.58  agreements with the federal government, 
 13.59  other state agencies, political 
 13.60  subdivisions, and nonprofit 
 13.61  organizations or fee owners to acquire 
 14.1   land and restore and create wetlands 
 14.2   and to acquire existing wetland banking 
 14.3   credits with money provided by this 
 14.4   appropriation.  Acquisition of or the 
 14.5   conveyance of land may be in the name 
 14.6   of the political subdivision. 
 14.7      Sec. 4.  [BOND SALE AUTHORIZATION.] 
 14.8      Subdivision 1.  [BOND PROCEEDS FUND.] To provide the money 
 14.9   appropriated in this article from the bond proceeds fund, the 
 14.10  commissioner of finance shall sell and issue bonds of the state 
 14.11  in an amount up to $763,700,000 in the manner, upon the terms, 
 14.12  and with the effect prescribed by Minnesota Statutes, sections 
 14.13  16A.631 to 16A.675, and by the Minnesota Constitution, article 
 14.14  XI, sections 4 to 7. 
 14.15     Subd. 2.  [TRANSPORTATION FUND.] To provide the money 
 14.16  appropriated in this article from the state transportation fund, 
 14.17  the commissioner of finance shall sell and issue bonds of the 
 14.18  state in an amount up to $20,000,000 in the manner, upon the 
 14.19  terms, and with the effect prescribed by Minnesota Statutes, 
 14.20  sections 16A.631 to 16A.675, and by the Minnesota Constitution, 
 14.21  article XI, sections 4 to 7.  The proceeds of the bonds, except 
 14.22  accrued interest and any premium received on the sale of the 
 14.23  bonds, must be credited to a bond proceeds account in the state 
 14.24  transportation fund. 
 14.25     Sec. 5.  Minnesota Statutes 2002, section 174.52, is 
 14.26  amended by adding a subdivision to read: 
 14.27     Subd. 4a.  [MAJOR LOCAL PROJECTS ACCOUNT; 
 14.28  APPROPRIATION.] (a) A major local projects account is 
 14.29  established in the local road improvement fund.  Money in the 
 14.30  account is annually appropriated to the commissioner for 
 14.31  expenditure as specified in this section.  Money in the account 
 14.32  must be used to pay all or a portion of the costs of county and 
 14.33  city highway and bridge capital improvements that: 
 14.34     (1) in the case of a project undertaken by a county, have a 
 14.35  cost at least equal to 100 percent of the average county 
 14.36  state-aid highway fund apportionment to the county, excluding 
 14.37  amounts in the county's maintenance account under section 
 14.38  162.08, subdivision 9, for the three years preceding the year of 
 15.1   application; 
 15.2      (2) in the case of a project undertaken by a city 
 15.3   participating in the municipal state-aid street system, have a 
 15.4   cost at least equal to 100 percent of the average municipal 
 15.5   state-aid street fund apportionment to the city, excluding 
 15.6   amounts in the city's maintenance account under section 162.14, 
 15.7   subdivision 3, for the three years preceding the year of 
 15.8   application; and 
 15.9      (3) in the case of a project undertaken by a city not 
 15.10  participating in the municipal state-aid street system, have a 
 15.11  cost equal to the average county state-aid money needs for the 
 15.12  three years preceding the year of application, as determined 
 15.13  under section 162.07, subdivision 5, that are attributable to 
 15.14  county state-aid highways within the city. 
 15.15     (b) The advisory committee shall make recommendations to 
 15.16  the commissioner on approval of applications for grants from the 
 15.17  account.  In making the recommendations, the advisory committee 
 15.18  may recommend creation of separate amounts within the account 
 15.19  dedicated to counties, cities participating in the municipal 
 15.20  state-aid street system, and cities not participating in the 
 15.21  municipal state-aid street system. 
 15.22     (c) In evaluating applications for grants from the account 
 15.23  before making recommendations to the commissioner, the advisory 
 15.24  committee shall use the criteria listed in subdivision 5, 
 15.25  clauses (1) and (3) through (6). 
 15.26     Sec. 6.  Minnesota Statutes 2002, section 174.52, 
 15.27  subdivision 5, is amended to read: 
 15.28     Subd. 5.  [GRANT PROCEDURES AND CRITERIA.] The commissioner 
 15.29  shall establish procedures for statutory or home rule charter 
 15.30  cities, towns, and counties to apply for grants or loans from 
 15.31  the fund and criteria to be used to select projects for funding. 
 15.32  The commissioner shall establish these procedures and criteria 
 15.33  in consultation with representatives appointed by the 
 15.34  association of Minnesota counties, league of Minnesota cities, 
 15.35  and Minnesota township officers association.  Except as provided 
 15.36  in subdivision 4a, the criteria for determining project priority 
 16.1   and the amount of a grant or loan must be based upon 
 16.2   consideration of: 
 16.3      (1) the availability of other state, federal, and local 
 16.4   funds; 
 16.5      (2) the regional significance of the route; 
 16.6      (3) effectiveness of the proposed project in eliminating a 
 16.7   transportation system deficiency; 
 16.8      (4) the number of persons who will be positively impacted 
 16.9   by the project; 
 16.10     (5) the project's contribution to other local, regional, or 
 16.11  state economic development or redevelopment efforts; and 
 16.12     (6) ability of the local unit of government to adequately 
 16.13  provide for the safe operation and maintenance of the facility 
 16.14  upon project completion. 
 16.15     Sec. 7.  [EFFECTIVE DATE.] 
 16.16     Sections 1 to 6 are effective July 1, 2003.