HF 1535

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:52am

A bill for an act
relating to metropolitan government; transferring transit functions from the
Metropolitan Council; creating the Minnesota Transit Authority; increasing
the general sales tax and dedicating the proceeds to the authority; abolishing
certain local sales tax authority; amending Minnesota Statutes 2008, sections
10A.01, subdivision 35; 297A.62, subdivision 1; 297A.94; 297A.99, subdivision
1; 297B.02, subdivision 1; 398A.04, subdivision 1; 398A.07, subdivision 1;
473.121, by adding a subdivision; 473.375; 473.382; 473.384; 473.385; 473.386;
473.3875; 473.388; 473.39, subdivisions 1, 1m, 2, 4, 5, as added; 473.392;
473.3997; 473.405; 473.4051, subdivision 1; 473.407, subdivisions 1, 3, 4, 5;
473.408; 473.409; 473.411; 473.415, subdivision 1; 473.416; 473.42; 473.436;
473.446; 473.448; 473.449; proposing coding for new law in Minnesota Statutes,
chapter 473; repealing Minnesota Statutes 2008, sections 297A.992; 297A.993;
398A.04, subdivisions 2, 3; 398A.10; 473.384, subdivisions 6, 7; 473.387;
473.391; 473.399, subdivisions 1, 1a, 4, 5; 473.3994, subdivisions 1a, 2, 3, 4, 5,
7, 8, 9, 10, 14; 473.4461; Laws 2008, chapter 152, article 6, section 8.

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

Section 1.

Minnesota Statutes 2008, section 10A.01, subdivision 35, is amended to
read:

Subd. 35.

Public official.

"Public official" means any:

(1) member of the legislature;

(2) individual employed by the legislature as secretary of the senate, legislative
auditor, chief clerk of the house of representatives, revisor of statutes, or researcher,
legislative analyst, or attorney in the Office of Senate Counsel and Research or House
Research;

(3) constitutional officer in the executive branch and the officer's chief administrative
deputy;

(4) solicitor general or deputy, assistant, or special assistant attorney general;

(5) commissioner, deputy commissioner, or assistant commissioner of any state
department or agency as listed in section 15.01 or 15.06, or the state chief information
officer;

(6) member, chief administrative officer, or deputy chief administrative officer of a
state board or commission that has either the power to adopt, amend, or repeal rules under
chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;

(7) individual employed in the executive branch who is authorized to adopt, amend,
or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;

(8) executive director of the State Board of Investment;

(9) deputy of any official listed in clauses (7) and (8);

(10) judge of the Workers' Compensation Court of Appeals;

(11) administrative law judge or compensation judge in the State Office of
Administrative Hearings or unemployment law judge in the Department of Employment
and Economic Development;

(12) member, regional administrator, division director, general counsel, or operations
manager of the Metropolitan Council;

(13) member or chief administrator of a metropolitan agency;

(14) director of the Division of Alcohol and Gambling Enforcement in the
Department of Public Safety;

(15) member or executive director of the Higher Education Facilities Authority;

(16) member of the board of directors or president of Enterprise Minnesota, Inc.;

(17) member of the board of directors or executive director of the Minnesota State
High School League;

(18) member of the Minnesota Ballpark Authority established in section 473.755;

(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;

(20) manager of a watershed district, or member of a watershed management
organization as defined under section 103B.205, subdivision 13;

(21) supervisor of a soil and water conservation district;

(22) director of Explore Minnesota Tourism; deleted text begin or
deleted text end

(23) citizen member of the Lessard Outdoor Heritage Council established in section
97A.056 new text begin ; or
new text end

new text begin (22) member of the Minnesota Transit Authority established in section 473.372 new text end .

Sec. 2.

Minnesota Statutes 2008, section 297A.62, subdivision 1, is amended to read:

Subdivision 1.

Generally.

Except as otherwise provided in subdivision 3 or in this
chapter, a sales tax of deleted text begin 6.5 deleted text end new text begin 6.75 new text end percent is imposed on the gross receipts from retail sales as
defined in section 297A.61, subdivision 4, made in this state or to a destination in this
state by a person who is required to have or voluntarily obtains a permit under section
297A.83, subdivision 1.

Sec. 3.

Minnesota Statutes 2008, 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 finance 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) 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.

(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and
for fiscal year 2004 and thereafter, 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.

(f) The revenue dedicated under paragraph (e) 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 (e) 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 (e) must be allocated for field operations.

new text begin (g) The commissioner shall deposit 3.7 percent of the revenues, including interest
and penalties, derived from taxes imposed under sections 297A.62 and 297A.63 in the
state treasury to be credited to the Minnesota Transit Authority account.
new text end

Sec. 4.

Minnesota Statutes 2008, section 297A.99, subdivision 1, is amended to read:

Subdivision 1.

Authorization; scope.

(a) A political subdivision of this state may
impose a general sales tax deleted text begin (1) under section 297A.992, (2) under section 297A.993, (3) deleted text end if
permitted by special law enacted prior to May 20, 2008, or deleted text begin (4) deleted text end if the political subdivision
enacted and imposed the tax before January 1, 1982, and its predecessor provision.

(b) This section governs the imposition of a general sales tax by the political
subdivision. The provisions of this section preempt the provisions of any special law:

(1) enacted before June 2, 1997, or

(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
provision from this section's rules by reference.

(c) This section does not apply to or preempt a sales tax on motor vehicles or a
special excise tax on motor vehicles.

(d) Until after May 31, 2010, a political subdivision may not advertise, promote,
expend funds, or hold a referendum to support imposing a local option sales tax unless
it is for extension of an existing tax or the tax was authorized by a special law enacted
prior to May 20, 2008.

Sec. 5.

Minnesota Statutes 2008, section 297B.02, subdivision 1, is amended to read:

Subdivision 1.

Rate.

There is imposed an excise tax deleted text begin at the rate provided in chapter
297A deleted text end new text begin of 6.5 percent new text end on the purchase price of any motor vehicle purchased or acquired,
either in or outside of the state of Minnesota, which is required to be registered under
the laws of this state.

The excise tax is also imposed on the purchase price of motor vehicles purchased
or acquired on Indian reservations when the tribal council has entered into a sales tax on
motor vehicles refund agreement with the state of Minnesota.

Sec. 6.

Minnesota Statutes 2008, section 398A.04, subdivision 1, is amended to read:

Subdivision 1.

General.

An authority may exercise all the powers necessary or
desirable to implement the powers specifically granted in this section, and in exercising
the powers is deemed to be performing an essential governmental function and exercising
a part of the sovereign power of the state, and is a local government unit and political
subdivision of the state. Without limiting the generality of the foregoing, the authority
may:

(a) sue and be sued, have a seal, which may but need not be affixed to documents as
directed by the board, make and perform contracts, and have perpetual succession;

(b) acquire real and personal property within or outside its taxing jurisdiction, by
purchase, gift, devise, condemnation, conditional sale, lease, lease purchase, or otherwise;
deleted text begin or for purposes, including the facilitation of an economic development project pursuant to
section 383B.81 or 469.091 or 469.175, subdivision 7, that also improve rail service; deleted text end new text begin and new text end

(c) hold, manage, control, sell, convey, lease, mortgage, or otherwise dispose of real
or personal property deleted text begin ; and
deleted text end

deleted text begin (d) make grants or otherwise appropriate funds to the Department of Transportation,
the Metropolitan Council, or any other state or local governmental unit for the purposes
described in subdivision 2 with respect to railroad facilities located or to be located within
the authority's jurisdiction, whether or not the facilities will be acquired, constructed,
owned, or operated by the authority deleted text end .

Sec. 7.

Minnesota Statutes 2008, section 398A.07, subdivision 1, is amended to read:

Subdivision 1.

Authorization.

An authority may from time to time issue bonds,
or other obligations however designated, in principal amounts as it shall deem necessary
to fulfill its purpose and to exercise any of its powers, to provide funds for deleted text begin operating
expenses in anticipation of revenues of the current year, or for deleted text end capital expenditures in
anticipation of the issuance of long term bonds or the receipt of a grant or loan of state or
federal funds, to refund the principal of or interest or redemption premiums on outstanding
bonds whether or not the amounts refunded have become due and payable, to establish
or increase reserves to secure the payment of bonds or interest on them, and to pay costs
and expenses of the issuance of the bonds.

Sec. 8.

Minnesota Statutes 2008, section 473.121, is amended by adding a subdivision
to read:

new text begin Subd. 16a. new text end

new text begin Minnesota Transit Authority. new text end

new text begin "Minnesota Transit Authority" or
"authority" means the Minnesota Transit Authority established by section 473.372.
new text end

Sec. 9.

new text begin [473.372] MINNESOTA TRANSIT AUTHORITY; CREATION.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin Metro Transit, an operating division of the Metropolitan
Council, is established as an independent authority named the Minnesota Transit Authority
with statewide jurisdiction. The Minnesota Transit Authority is established as a public
corporation and political subdivision of the state. The authority shall be composed of
members, selected as follows:
new text end

new text begin (1) the mayor of Minneapolis or a member of the Minneapolis City Council, chosen
by the Minneapolis City Council;
new text end

new text begin (2) the mayor of St. Paul or a member of the St. Paul City Council, chosen by
the St. Paul City Council;
new text end

new text begin (3) one Hennepin county commissioner chosen by the Hennepin County Board;
new text end

new text begin (4) one Ramsey county commissioner chosen by the Ramsey County Board;
new text end

new text begin (5) county commissioners from Anoka, Carver, Dakota, Scott, and Washington
counties; and
new text end

new text begin (6) two residents of greater Minnesota, one each from north and south of the
metropolitan area, appointed by the governor. For purposes of this paragraph, the counties
of McLeod, Renville, and Yellow Medicine shall be the northernmost counties considered
to be south of the metropolitan area.
new text end

new text begin Subd. 2. new text end

new text begin Terms. new text end

new text begin All members shall serve for three-year terms, except that the
first members appointed under subdivision 1, clauses (1) and (4), and the first member
appointed from north of the metropolitan area under subdivision 1, clause (6), shall serve
for one-year terms. The first members appointed under subdivision 1, clause (5), shall
serve two-year terms.
new text end

new text begin Subd. 3. new text end

new text begin Voting. new text end

new text begin All members shall have one vote, except members appointed
under subdivision 1, clause (5), shall have one-half of a vote.
new text end

new text begin Subd. 4. new text end

new text begin Chair. new text end

new text begin The chair shall be elected from among the members, preside at all
meetings of the authority, if present, and perform all other assigned duties and functions.
The authority may appoint from among its members a vice-chair to act for the chair during
the temporary absence or disability of the chair.
new text end

new text begin Subd. 5. new text end

new text begin Bylaws. new text end

new text begin The authority shall adopt bylaws to establish rules of procedure,
the powers and duties of its officers, and other matters relating to the governance of the
authority and the exercise of its powers.
new text end

new text begin Subd. 6. new text end

new text begin Executive director. new text end

new text begin The authority shall appoint an executive director to
serve as the chief executive officer of the authority.
new text end

new text begin Subd. 7. new text end

new text begin Compensation. new text end

new text begin Compensation of members is governed by section
15.0575.
new text end

Sec. 10.

new text begin [473.374] TRANSFER OF POWER.
new text end

new text begin Subdivision 1. new text end

new text begin Metropolitan Council. new text end

new text begin All powers, duties, and functions now vested
in the Metropolitan Council relating to the planning, operation, and contracting of transit
service in the metropolitan area are transferred to the Minnesota Transit Authority. This
includes all administrative functions necessary to the operation of transit services.
new text end

new text begin Subd. 2. new text end

new text begin Department of Transportation. new text end

new text begin All powers, duties, and functions
now vested in the Department of Transportation's Office of Transit, including Federal
Transportation Administration grantee status, are transferred to the Minnesota Transit
Authority. All powers, duties, and functions related to passenger rail service now vested in
the Department of Transportation are transferred to the Minnesota Transit Authority.
new text end

new text begin Subd. 3. new text end

new text begin Regional rail authorities. new text end

new text begin All powers, duties, and functions related to
planning, funding, constructing, and operating rail transit now vested in regional rail
authorities are transferred to the Minnesota Transit Authority.
new text end

new text begin Subd. 4. new text end

new text begin Metropolitan Transit Development Board. new text end

new text begin All powers, duties, and
functions of the Metropolitan Transit Development Board are transferred to the Minnesota
Transit Authority.
new text end

Sec. 11.

Minnesota Statutes 2008, section 473.375, is amended to read:

473.375 POWERS OF deleted text begin COUNCIL deleted text end new text begin AUTHORITY new text end .

Subd. 9.

Advisory committees.

The deleted text begin council deleted text end new text begin authority new text end may establish one or more
advisory committees composed of and representing transit providers, transit users, and
local units of government to advise it in carrying out its purposes. The members of
advisory committees serve without compensation.

Subd. 11.

Ridesharing.

The deleted text begin council deleted text end new text begin authority new text end shall administer a ridesharing
program in the metropolitan area, deleted text begin except for deleted text end new text begin including new text end the statewide vanpool leasing
program deleted text begin conducted by the commissioner of transportation deleted text end and shall cooperate with the
commissioner new text begin of transportation new text end in the conduct of ridesharing activities in areas where the
commissioner's programs and the deleted text begin council's deleted text end new text begin authority's new text end program overlap. The deleted text begin council deleted text end new text begin
authority new text end shall establish a rideshare advisory committee to advise it in carrying out the
program. The deleted text begin council deleted text end new text begin authority new text end may contract for services in operating the program.

Subd. 12.

Assistance.

The deleted text begin council deleted text end new text begin authority new text end shall offer, use, and apply its services
to assist and advise transit providers in the metropolitan transit area in the planning,
promotion, development, operation, and evaluation of programs and projects which are
undertaken or proposed to be undertaken by contract with the deleted text begin council deleted text end new text begin authority new text end , and shall
seek out and select recipients of this assistance and advice.

Subd. 13.

Financial assistance.

The deleted text begin council deleted text end new text begin authority new text end may provide financial
assistance to public transit providers as provided in sections 473.371 to 473.449. The
deleted text begin council deleted text end new text begin authority new text end may not use the proceeds of bonds issued under section 473.39 to
provide capital assistance to private, for-profit operators of public transit, unless the
operators provide service under a contract with the deleted text begin council deleted text end new text begin authority new text end , the former regional
transit board, or recipients of financial assistance under sections 473.371 to 473.449.

No political subdivision within the metropolitan area may apply for federal transit
assistance unless its application has been submitted to and approved by the deleted text begin council deleted text end new text begin
authority new text end .

deleted text begin Subd. 14. deleted text end

deleted text begin Coordination. deleted text end

deleted text begin The council shall coordinate transit operations within the
metropolitan area and shall establish a transit information program to provide transit users
with accurate information on transit schedules and service.
deleted text end

Subd. 15.

Performance standards.

The deleted text begin council may deleted text end new text begin authority shall new text end establish
performance standards for recipients of financial assistance.

Sec. 12.

new text begin [473.376] ADDITIONAL DUTIES OF MINNESOTA TRANSIT
AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Bus purchases. new text end

new text begin The authority shall develop specifications for,
and purchase, all transit buses, all bus parts and repair materials, and all fuel and bus
consumables for the state.
new text end

new text begin Subd. 2. new text end

new text begin Rail construction and operation. new text end

new text begin The authority shall construct and
operate all state and locally funded rail service in the state, and will be the designated
agency to contract with Amtrak for additional passenger rail service.
new text end

new text begin Subd. 3. new text end

new text begin Transit control. new text end

new text begin The authority's transit control center shall manage
all metropolitan area transit buses, regardless of provider, when they are in operation,
including all on-street supervision of transit operators. Within Metro Transit's operating
area, the authority shall determine and allocate the use of bus stops, bus lanes, and bus
terminals by all transit operators.
new text end

new text begin Subd. 4. new text end

new text begin Transit information. new text end

new text begin The authority shall be responsible for all transit
information to the public, and all customer complaint handling.
new text end

new text begin Subd. 5. new text end

new text begin Insurance. new text end

new text begin The authority shall provide the option of liability self-insurance
for all state public transit operators.
new text end

new text begin Subd. 6. new text end

new text begin Subsidies. new text end

new text begin The authority shall develop subsidy per passenger standards
and ceilings which shall ensure financial equity in publicly funded transit service and
which shall be binding on all public transit operators in the state.
new text end

new text begin Subd. 7. new text end

new text begin Coordination. new text end

new text begin The authority and all other state transit providers shall
explore opportunities for coordination and joint operations that reduce operating costs or
improve the quality of service to the public.
new text end

new text begin Subd. 8. new text end

new text begin Efficiencies. new text end

new text begin The authority will review all existing paratransit, demand
responsive, and special transportation services with the goal of reducing duplication
with the fixed route system. Where it is possible without creating undue hardship
and inconvenience, paratransit, demand responsive, and special transportation service
passengers will be transferred to fixed route service at the first available transit center or
station for the completion of their trips, with the goal of reducing operating costs.
new text end

new text begin Subd. 9. new text end

new text begin Public-private partnerships. new text end

new text begin The authority may establish partnerships
with private van services and other entities providing services to their employees, clients,
or students to leverage private investment to create a more comprehensive transit system.
new text end

new text begin Subd. 10. new text end

new text begin Interstate coordination. new text end

new text begin The authority will coordinate with neighboring
states to address mutual public transportation issues, and will work to create interstate
agreements for the provision of needed public transportation.
new text end

new text begin Subd. 11. new text end

new text begin Public transportation connecting Minnesota cities. new text end

new text begin The authority will
inventory existing public transportation connecting Minnesota cities and will create a plan
that identifies and prioritizes opportunities for improvement.
new text end

Sec. 13.

Minnesota Statutes 2008, section 473.382, is amended to read:

473.382 LOCAL PLANNING AND DEVELOPMENT PROGRAM.

The deleted text begin council deleted text end new text begin authority new text end shall establish a program to ensure participation by
representatives of local government units and the coordination of the planning and
development of transit by local government units. The deleted text begin council deleted text end new text begin authority new text end shall encourage
the establishment of local transit planning and development boards by local governments
for the purpose of:

(a) identifying service needs and objectives;

(b) preparing, or advising and assisting local units of government in preparing the
transit study and service plan required by section 473.384;

(c) preparing or advising the deleted text begin council deleted text end new text begin authority new text end in the review of applications for
assistance deleted text begin under section 473.384 deleted text end .

The deleted text begin council deleted text end new text begin authority new text end may provide local boards with whatever assistance it deems
necessary and appropriate.

Sec. 14.

Minnesota Statutes 2008, section 473.384, is amended to read:

473.384 CONTRACTS.

Subdivision 1.

Contracts required.

The deleted text begin council deleted text end new text begin authority new text end shall make contracts with
eligible recipients for financial assistance to transit service deleted text begin within the metropolitan area deleted text end .
The deleted text begin council deleted text end new text begin authority new text end may not give financial assistance to another transit provider without
first having executed a contract. The provisions of this section do not apply to contracts
made under sections 473.386 and 473.388.

Subd. 2.

Eligibility.

To be eligible to receive financial assistance by contract under
this section a recipient must be:

(a) a county, statutory or home rule charter city or town or combination thereof, or
public authority organized and existing pursuant to chapter 398A, providing financial
assistance to or providing or operating public transit; or

(b) a private provider of public transit.

Subd. 3.

Applications.

The deleted text begin council deleted text end new text begin authority new text end shall establish procedures and
standards for review and approval of applications for financial assistance under this
section. An applicant must provide the deleted text begin council deleted text end new text begin authority new text end with the financial and other
information the deleted text begin council deleted text end new text begin authority new text end requires to carry out its duties. The deleted text begin council deleted text end new text begin authority new text end
may specify procedures, including public hearing requirements, to be followed by
applicants that are cities, towns, or counties or combinations thereof in conducting transit
studies and formulating service plans under subdivisions 4 and 5.

Subd. 4.

Transit study.

The deleted text begin council deleted text end new text begin authority new text end shall require that prior to applying
for financial assistance by contract under clause (a) of subdivision 2, the applicant must
prepare and submit a transit study which includes the following elements:

(a) a determination of existing and future transit needs within the area to be served,
and an assessment of the adequacy of existing service to meet the needs;

(b) an assessment of the level and type of service required to meet unmet needs;

(c) an assessment of existing and future resources available for the financing of
transit service; and

(d) the type or types of any new government arrangements or agreements needed to
provide adequate service.

The transit study for any applicant may be done by the deleted text begin council deleted text end new text begin authority new text end .

Subd. 5.

Service plan.

The deleted text begin council deleted text end new text begin authority new text end shall, before making a contract with
an eligible recipient, require the submission of a service plan which includes the following
elements:

(a) a description of the service proposed for financial assistance, including vehicles,
routes, and schedules;

(b) an assessment of the extent to which the proposed service meets the needs as
determined by the transit study;

(c) a description of the contract administration and review process if the operation of
the proposed service is to be done by a private contractor;

(d) a description of the amount required to establish and operate the proposed service
and the proposed sources of the required amount including operating revenue, other local
sources, and assistance from the deleted text begin council deleted text end new text begin authority new text end and from federal sources;

(e) the fare structure of the proposed service; and

(f) projections of usage of the system.

The deleted text begin council deleted text end new text begin authority new text end may specify procedures, including public hearing
requirements, to be followed by applicants that are cities, towns, or counties or
combinations thereof in conducting transit studies and formulating service plans.

deleted text begin Subd. 6. deleted text end

deleted text begin Financial assistance for certain providers. deleted text end

deleted text begin The council shall provide
financial assistance to recipients who were receiving assistance by contract with
the commissioner of transportation under Minnesota Statutes 1982, section 174.24,
subdivision 3 on July 1, 1984, so that the percentage of total operating cost, as defined by
the council, paid by the recipient from all local sources of revenue, including operating
revenue, does not exceed the percentage for the recipient's classification as determined
by the commissioner of transportation under the commissioner's final contract with the
recipient. The council may include funds received under section 473.446, subdivision
1a, as a local source of revenue. The remainder of the total operating cost will be paid
by the council less all assistance received by the recipient for that purpose from any
federal source.
deleted text end

deleted text begin If a recipient informs the council in writing prior to the distribution of financial
assistance for any year that paying its designated percentage of total operating cost from
local sources will cause undue hardship, the council may adjust the percentage as it deems
equitable. If for any year the funds available to the council are insufficient to allow the
council to pay its share of total operating cost for those recipients, the council shall reduce
its share in each classification to the extent necessary.
deleted text end

deleted text begin Subd. 7. deleted text end

deleted text begin Transit operations impact assessment. deleted text end

deleted text begin Prior to entering into a contract
for operating assistance with a recipient, the council shall evaluate the effect, if any, of the
contract on the ridership, routes, schedules, fares, and staffing levels of the existing and
proposed service provided by the council. The council may enter into the contract only if
it determines that the service to be assisted under the contract will not impose an undue
hardship on the ridership or financial condition of the council's transit operations. The
requirements of this subdivision do not apply to contracts for assistance to recipients who,
as part of a negotiated cost-sharing arrangement with the council, pay a substantial part of
the cost of services that directly benefit the recipient as an institution or organization.
deleted text end

Subd. 8.

Paratransit contracts.

In executing and administering contracts for
paratransit projects, the deleted text begin council deleted text end new text begin authority new text end has the powers and duties given to the
commissioner of transportation in section 174.255, subdivisions 1 and 2, relating to
disability accessibility and insurance coverage. The provisions of section 174.255,
subdivision 3, apply to paratransit projects which receive assistance by contract with
the deleted text begin council deleted text end new text begin authority new text end .

Sec. 15.

Minnesota Statutes 2008, section 473.385, is amended to read:

473.385 TRANSIT SERVICE AREAS.

Subdivision 1.

Definitions.

(a) "Fully developed service area" means the fully
developed area, as defined in the Metropolitan Council's development guide deleted text begin , plus the
cities of Mendota Heights, Maplewood, North St. Paul, and Little Canada deleted text end .

(b) "Regular route transit" has the meaning given it in section 174.22, subdivision 8,
except that, for purposes of this section, the term does not include services on fixed routes
and schedules that are primarily intended to provide circulator service within a community
or adjacent communities rather than feeder service to the system of metropolitan regular
route transit operated by the deleted text begin council deleted text end new text begin authority new text end .

Subd. 2.

Service areas.

The deleted text begin council deleted text end new text begin authority new text end may provide financial assistance
(whether directly or through another entity) to private, for-profit operators of public transit
only for the following services:

(1) services that are not regular route services;

(2) deleted text begin regular route services provided on June 2, 1989, by a private, for-profit operator
under contract with the former regional transit board or under a certificate of convenience
and necessity issued by the commissioner of transportation;
deleted text end

deleted text begin (3) regular route services outside of the fully developed service area that are not
operated on June 2, 1989, by the former Metropolitan Transit Commission;
deleted text end

deleted text begin (4) regular route services provided under section 473.388;
deleted text end

deleted text begin (5) deleted text end regular route services to recipients who, as part of a negotiated cost-sharing
arrangement with the deleted text begin council deleted text end new text begin authority new text end , pay at least 50 percent of the cost of the service
that directly benefits the recipient as an institution or organization; or

deleted text begin (6) deleted text end new text begin (3) new text end regular route services that will not be operated for a reasonable subsidy
by the deleted text begin council deleted text end new text begin authority new text end .

Sec. 16.

Minnesota Statutes 2008, section 473.386, is amended to read:

473.386 SPECIAL TRANSPORTATION SERVICE.

Subdivision 1.

Service objectives.

The deleted text begin council deleted text end new text begin authority new text end shall implement a special
transportation service, as defined in section 174.29 deleted text begin , in the metropolitan area deleted text end . The service
has the following objectives:

(a) to provide greater access to transportation for the elderly, people with disabilities,
and others with special transportation needs in the metropolitan area;

(b) to develop an integrated system of special transportation service providing
transportation tailored to meet special individual needs in the most cost-efficient manner;
and

(c) to use existing public, private, and private nonprofit providers of service when
feasible and cost-efficient, to supplement rather than replace existing service, and to
increase the productivity of all special transportation vehicles available in the area.

Subd. 2.

Service contracts; management; transportation accessibility advisory
committee.

(a) The deleted text begin council deleted text end new text begin authority new text end may contract for services necessary for the provision
of special transportation. Transportation service provided under a contract must specify
the service to be provided, the standards that must be met, and the rates for operating and
providing special transportation services.

(b) The deleted text begin council deleted text end new text begin authority new text end shall establish management policies for the service and
may contract with a service administrator for day-to-day administration and management
of the service. Any contract must delegate to the service administrator clear authority
to administer and manage the delivery of the service pursuant to deleted text begin council deleted text end new text begin authority new text end
management policies and must establish performance and compliance standards for the
service administrator. The deleted text begin council deleted text end new text begin authority new text end may provide directly day to day administration
and management of the service and may own or lease vehicles used to provide the service.

(c) The deleted text begin council deleted text end new text begin authority new text end shall ensure that the service administrator establishes a
system for registering and expeditiously responding to complaints by users, informing
users of how to register complaints, and requiring providers to report on incidents that
impair the safety and well-being of users or the quality of the service.

(d) The deleted text begin council deleted text end new text begin authority new text end shall report on its special transportation services as part of
the program evaluation provided for in section 473.13, subdivision 1a.

(e) The deleted text begin council deleted text end new text begin authority new text end shall provide, on an annual basis, an opportunity for users
and other interested persons to provide testimony to the council concerning services
provided under this section.

(f) The deleted text begin council deleted text end new text begin authority new text end shall establish a Transportation Accessibility Advisory
Committee consisting of 15 members and a chair to advise the deleted text begin council deleted text end new text begin authority new text end on
management policies for the deleted text begin council's deleted text end new text begin authority's new text end special transportation service. The
Transportation Accessibility Advisory Committee must include elderly and disabled
persons, other users of special transportation service, and representatives of appropriate
agencies for elderly and disabled persons. At least half the Transportation Accessibility
Advisory Committee members must be persons who are both ADA-certified and users
of public transit in the metropolitan area. Two of the appointments to the Transportation
Accessibility Advisory Committee shall be made by the Council on Disability in
consultation with the chair of the deleted text begin Metropolitan Council deleted text end new text begin Minnesota Transit Authority new text end .

Subd. 2a.

Eligibility application and verification; penalty for fraudulent
certification.

(a) If the deleted text begin council deleted text end new text begin authority new text end requires a person to be certified as eligible for
special transportation services, an applicant for certification must submit an application
form and the applicant's eligibility must be verified by a type of professional specified by
the deleted text begin council deleted text end new text begin authority new text end . The deleted text begin council deleted text end new text begin authority new text end shall:

(1) require the applicant to sign the application form and certify that the application
information is accurate; and

(2) require the person verifying the applicant's eligibility to sign the eligibility
verification form and certify that the verifying information is accurate.

(b) The penalty provided for in section 174.295, subdivision 4, applies to the
certifications by the applicant and the person verifying the applicant's eligibility. The
deleted text begin council deleted text end new text begin authority new text end must include a notice of the penalty for fraudulent certification in the
application form and the eligibility verification form.

Subd. 3.

Duties of deleted text begin council deleted text end new text begin authority new text end .

In implementing the special transportation
service, the deleted text begin council deleted text end new text begin authority new text end shall:

(a) encourage participation in the service by public, private, and private nonprofit
providers of special transportation currently receiving capital or operating assistance
from a public agency;

(b) when feasible and cost-efficient, contract with public, private, and private
nonprofit providers that have demonstrated their ability to effectively provide service at
a reasonable cost;

(c) encourage individuals using special transportation to use the type of service
most appropriate to their particular needs;

(d) encourage shared rides to the greatest extent practicable;

(e) encourage public agencies that provide transportation to eligible individuals as a
component of human services and educational programs to coordinate with this service
and to allow reimbursement for transportation provided through the service at rates that
reflect the public cost of providing that transportation;

(f) establish criteria to be used in determining individual eligibility for special
transportation services;

(g) consult with the Transportation Accessibility Advisory Committee in a timely
manner before changes are made in the provision of special transportation services;

(h) provide for effective administration and enforcement of deleted text begin council deleted text end new text begin authority new text end
policies and standards; and

(i) ensure that, taken as a whole including contracts with public, private, and private
nonprofit providers, the geographic coverage area of the special transportation service
deleted text begin is continuous within the boundaries of the transit taxing district, as defined as of March
1, 2006, in section 473.446, subdivision 2 deleted text end new text begin shall extend beyond the area served by fixed
route public transit new text end . new text begin Service connecting the metropolitan areas shall be provided by fixed
route public transit.
new text end

deleted text begin Subd. 4. deleted text end

deleted text begin Coordination required. deleted text end

deleted text begin The council may not grant any financial
assistance to any recipient that proposes to use any part of the grant to provide special
transportation service in the metropolitan area unless the program is coordinated with the
council's special transportation service in the manner determined by the council. The
council is not required to provide funding for transportation services from a residence to
a service site and home again when the services are used by individuals in conjunction
with their participation in human service developmental achievement center programs
in which transportation to and from the program is a required and funded component
of those programs.
deleted text end

deleted text begin Subd. 5. deleted text end

deleted text begin Equitable allocation and annual reallocation. deleted text end

deleted text begin The council shall
distribute all available funding under this section in a manner designed to achieve an
equitable allocation of special transportation services based on the proportion of the
number of elderly, disabled, or economically disadvantaged individuals with special
transportation needs who actually use the special transportation service.
deleted text end

Subd. 6.

Operating and service standards.

A person operating or assisting the
operation of a vehicle may leave the vehicle to enter premises in order to help a passenger
who does not require emergency ambulance service. Operators and assistants shall provide
the help necessary for door-through-door service, including help in entering and leaving
the vehicle and help through the exterior entrance and over any exterior steps at either
departure or destination buildings, provided that both the steps and the wheelchair are in
good repair. If an operator or assistant refuses help because of the condition of the steps or
the wheelchair, the operator of the service shall send letters to the service administrator
designated by the deleted text begin council deleted text end new text begin authority new text end , who shall notify the person denied service describing
the corrective measures necessary to qualify for service.

Subd. 8.

Vehicle title transfer; conditions.

The deleted text begin Metropolitan Council deleted text end new text begin Minnesota
Transit Authority new text end may transfer to a special transportation service provider or a provider of
taxi services the title to a vehicle formerly used to provide special transportation service
under this section. If the deleted text begin council deleted text end new text begin authority new text end transfers title to a provider of taxi services, it
may do so only to a provider of taxi services that is licensed by a city whose taxi licensing
ordinance requires (1) criminal background checks and annual driving record checks for
drivers, and (2) inspection of vehicles at least annually.

Sec. 17.

Minnesota Statutes 2008, section 473.3875, is amended to read:

473.3875 deleted text begin TRANSIT FOR deleted text end LIVABLE COMMUNITIES new text begin DEMONSTRATION
FUND new text end .

new text begin Subdivision 1. new text end

new text begin Fund established. new text end

The council shall establish a deleted text begin transit for deleted text end livable
communities demonstration program fund. The council shall adopt guidelines for selecting
and evaluating demonstration projects for funding. The selection guidelines must include
provisions evaluating projects:

(1) interrelating development or redevelopment and transit;

(2) interrelating affordable housing and employment growth areas;

(3) helping intensify land use that leads to more compact development or
redevelopment;

(4) coordinating school transportation and public transit service;

(5) implementing recommendations of the transit redesign plan; or

(6) otherwise promoting the goals of the Metropolitan Livable Communities Act.

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin Grants from the demonstration program fund are only available for
projects located within one-quarter mile of an existing fixed-route public transit service.
new text end

Sec. 18.

Minnesota Statutes 2008, section 473.388, is amended to read:

473.388 REPLACEMENT SERVICE PROGRAM.

Subdivision 1.

Program established.

A replacement service program is established
to continue the metropolitan transit service demonstration program established in
Minnesota Statutes 1982, section 174.265, as provided in this section.

Subd. 2.

Replacement service; eligibility.

The deleted text begin council deleted text end new text begin authority new text end may provide
assistance under the program to a statutory or home rule charter city or town or
combination thereof deleted text begin , that: deleted text end new text begin .
new text end

deleted text begin (a) is located in the metropolitan transit taxing district;
deleted text end

deleted text begin (b) is not served by the council bus service or is served only with council bus routes
which begin or end within the applying city or town or combination thereof; and
deleted text end

deleted text begin (c) has fewer than four scheduled runs of council bus service during off-peak hours
defined in section 473.408, subdivision 1.
deleted text end

deleted text begin Eligible cities or towns or combinations thereof may apply on behalf of a transit
operator with whom they propose to contract for service.
deleted text end

deleted text begin The council may not provide assistance under this section to a statutory or home rule
charter city or town unless the city or town,
deleted text end

deleted text begin (i) was receiving assistance under Minnesota Statutes 1982, section 174.265 by
July 1, 1984,
deleted text end

deleted text begin (ii) had submitted an application for assistance under that section by July 1, 1984, or
deleted text end

deleted text begin (iii) had submitted a letter of intent to apply for assistance under that section by July
1, 1984, and submits an application for assistance under this section by July 1, 1988. A
statutory or home rule charter city or town has an additional 12-month extension if it
notified the former regional transit board before July 1, 1988, that the city or town is in the
process of completing a transportation evaluation study that includes an assessment of
the local transit needs of the city or town.
deleted text end

deleted text begin Subd. 3. deleted text end

deleted text begin Application for assistance. deleted text end

deleted text begin An application for assistance under this
section must:
deleted text end

deleted text begin (a) describe the existing service provided to the applicant by the council, including
the estimated number of passengers carried and the routes, schedules, and fares;
deleted text end

deleted text begin (b) describe the transit service proposed for funding under the demonstration
program, including the anticipated number of passengers and the routes, schedules, and
fares; and
deleted text end

deleted text begin (c) indicate the total amount of available local transit funds, the portion of the
available local transit funds proposed to be used to subsidize replacement services, and the
amount of assistance requested for the replacement services.
deleted text end

Subd. 4.

Financial assistance.

deleted text begin (a) deleted text end The deleted text begin council deleted text end new text begin authority new text end must grant the requested
financial assistance if it determines that the proposed service is intended to replace the
service to the applying city or town or combination thereof by the deleted text begin council deleted text end new text begin authority new text end and
that the proposed service will meet the needs of the applicant at least as efficiently and
effectively as the existing service.

deleted text begin (b) The amount of assistance which the council must provide to a system under this
section may not be less than the sum of the amounts determined for each municipality
comprising the system as follows:
deleted text end

deleted text begin (1) the transit operating assistance grants received under this subdivision by the
municipality in calendar year 2001 or the tax revenues for transit services levied by the
municipality for taxes payable in 2001, including that portion of the levy derived from
the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of the
municipality's aid under section 273.1398, subdivision 2, attributable to the transit levy;
times
deleted text end

deleted text begin (2) the ratio of (i) an amount equal to 3.74 percent of the state revenues generated
from the taxes imposed under chapter 297B for the current fiscal year to (ii) the total
transit operating assistance grants received under this subdivision in calendar year 2001 or
the tax revenues for transit services levied by all replacement service municipalities under
this section for taxes payable in 2001, including that portion of the levy derived from
the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of
homestead and agricultural credit aid under section 273.1398, subdivision 2, attributable
to nondebt transit levies, times
deleted text end

deleted text begin (3) the ratio of (i) the municipality's total taxable market value for taxes payable
in 2006 divided by the municipality's total taxable market value for taxes payable in
2001, to (ii) the total taxable market value of all property located in replacement service
municipalities for taxes payable in 2006 divided by the total taxable market value of all
property located in replacement service municipalities for taxes payable in 2001.
deleted text end

deleted text begin (c) The council shall pay the amount to be provided to the recipient from the funds
the council receives in the metropolitan area transit account under section 16A.88.
deleted text end

deleted text begin Subd. 5. deleted text end

deleted text begin Other assistance. deleted text end

deleted text begin A city or town receiving assistance or levying a transit
tax under this section may also receive assistance from the council under section 473.384.
In applying for assistance under that section an applicant must describe the portion of its
available local transit funds or local transit taxes which are not obligated to subsidize its
replacement transit service and which the applicant proposes to use to subsidize additional
service. An applicant which has exhausted its available local transit funds or local transit
taxes may use any other local subsidy funds to complete the required local share.
deleted text end

Subd. 7.

Local levy option.

(a) A statutory or home rule charter city or town that
is eligible for assistance under this section may levy a tax for payment of obligations
issued by the municipality for capital expenditures for transit and other related activities,
provided that property taxes were pledged to satisfy the obligations, and provided that
legislative appropriations are insufficient to satisfy the obligations.

(b) This subdivision is consistent with the transit redesign plan. Eligible
municipalities opting to operate under this subdivision shall continue to meet the regional
performance standards established by the deleted text begin council deleted text end new text begin authority new text end .

(c) Within the designated Americans with Disabilities Act area, metro mobility
remains the obligation of the state.

Subd. 8.

Service incentive.

A replacement transit service shall receive an additional
two percent of available local transit funds, as defined in subdivision 4, if the service
increased its ridership for trips that originate outside of the replacement transit service's
member communities and serve the employment centers in those communities by at
least five percent from the previous year, provided the service operates within regional
performance standards. A replacement transit service that is receiving the maximum
amount of available local transit funds may receive up to two percent over the maximum
amount set in subdivision 4 if it increases its ridership as provided in this subdivision. The
additional funding received under this subdivision may be reserved by the replacement
transit service for future use.

Sec. 19.

Minnesota Statutes 2008, section 473.39, subdivision 1, is amended to read:

Subdivision 1.

General authority.

The deleted text begin council deleted text end new text begin authority new text end may issue general
obligation bonds subject to the volume limitations in this section to provide funds to
implement the deleted text begin council's deleted text end new text begin authority's new text end transit capital improvement program and may issue
general obligation bonds not subject to the limitations for the refunding of outstanding
bonds or certificates of indebtedness of the deleted text begin council deleted text end new text begin authority new text end , the former regional transit
board or the former metropolitan transit commission, and judgments against the former
regional transit board or the former metropolitan transit commission or the deleted text begin council deleted text end new text begin
authority new text end . The deleted text begin council deleted text end new text begin authority new text end may not issue obligations pursuant to this subdivision,
other than refunding bonds, in excess of the amount specifically authorized by law. Except
as otherwise provided in sections 473.371 to 473.449, the deleted text begin council deleted text end new text begin authority new text end shall provide
for the issuance, sale, and security of the bonds in the manner provided in chapter 475, and
has the same powers and duties as a municipality issuing bonds under that law, except
that no election is required and the net debt limitations in chapter 475 do not apply to
the bonds. The obligations are not a debt of the state or any municipality or political
subdivision within the meaning of any debt limitation or requirement pertaining to those
entities. Neither the state, nor any municipality or political subdivision except the deleted text begin council deleted text end new text begin
authority new text end , nor any member or officer or employee of the deleted text begin council deleted text end new text begin authority new text end , is liable on the
obligations. The obligations may be secured by taxes levied without limitation of rate or
amount upon all taxable property in the transit taxing district and transit area as provided in
section 473.446, subdivision 1, clause (c). As part of its levy made under section 473.446,
subdivision 1, clause (c), the deleted text begin council deleted text end new text begin authority new text end shall levy the amounts necessary to provide
full and timely payment of the obligations and transfer the proceeds to the appropriate
deleted text begin council deleted text end new text begin authority new text end account for payment of the obligations. The taxes must be levied,
certified, and collected in accordance with the terms and conditions of the indebtedness.

Sec. 20.

Minnesota Statutes 2008, section 473.39, subdivision 1m, is amended to read:

Subd. 1m.

Obligations.

After March 1, 2008, in addition to other authority in
this section, the deleted text begin council deleted text end new text begin authority new text end may issue certificates of indebtedness, bonds, or
other obligations under this section in an amount not exceeding $33,600,000 for capital
expenditures as prescribed in the deleted text begin council's deleted text end new text begin authority's new text end regional transit master plan and
transit capital improvement program and for related costs, including the costs of issuance
and sale of the obligations.

Sec. 21.

Minnesota Statutes 2008, section 473.39, subdivision 2, is amended to read:

Subd. 2.

Legal investments.

Certificates of indebtedness, bonds, or other
obligations issued by the deleted text begin council deleted text end new text begin authority new text end to which tax levies have been pledged pursuant
to section 473.446, are proper for investment of any funds by a bank, savings bank, savings
association, credit union, trust company, insurance company, or public or municipal
corporation, and may be pledged by any bank, savings bank, savings association, credit
union, or trust company as security for the deposit of public money.

Sec. 22.

Minnesota Statutes 2008, section 473.39, subdivision 4, is amended to read:

Subd. 4.

Transit capital improvement program.

The deleted text begin council deleted text end new text begin authority new text end may not
issue obligations pursuant to this section until the deleted text begin council deleted text end new text begin authority new text end adopts a deleted text begin three-year deleted text end
transit capital improvement program. The program must include a capital investment
component that sets forth a capital investment strategy and estimates the fiscal and other
effects of the strategy. The component must specify, to the extent practicable, the capital
improvements to be undertaken. For each improvement specified, the program must
describe: (1) need, function, objective, and relative priority; (2) alternatives, including
alternatives not involving capital expenditures; (3) ownership and operating entity; (4)
location and schedule of development; (5) environmental, social, and economic effects;
(6) cost; (7) manner of finance and revenue sources, including federal and state funds,
private funds, taxes, and user charges; and (8) fiscal effects, including an estimate of
annual operating costs and sources of revenue to pay the costs.

Sec. 23.

Minnesota Statutes 2008, section 473.39, subdivision 5, as added by Laws
2008, chapter 154, article 10, section 20, is amended to read:

Subd. 5.

Anticipation of grants.

In addition to other authority granted in this
section, the deleted text begin council deleted text end new text begin authority new text end may exercise the authority granted to an issuing political
subdivision by section 475.522.

Sec. 24.

Minnesota Statutes 2008, section 473.392, is amended to read:

473.392 SERVICE BIDDING.

The deleted text begin council deleted text end new text begin authority new text end may competitively bid transit service deleted text begin only deleted text end in accordance with
standards, procedures, and guidelines adopted by resolution of the deleted text begin council deleted text end new text begin authority new text end .
deleted text begin The council shall establish a project management team to assist and advise the council
in developing and implementing standards, procedures, and guidelines. The project
management team must include representatives of the Amalgamated Transit Union Local
1005, private operators, local governments, and other persons interested in the subject. At
least 60 days before adopting any standards, procedures, or guidelines for competitive
bidding of transit service, the council shall hold a public hearing on the subject. The
council shall publish notice of the hearing in newspapers of general circulation in the
metropolitan area not less than 15 days before the hearing. At the hearing all interested
persons must be afforded an opportunity to present their views orally and in writing.
Following the hearing, and after considering the testimony, the council shall revise and
adopt the standards, procedures, and guidelines.
deleted text end

Sec. 25.

new text begin [473.3992] LIGHT RAIL AND COMMUTER RAIL; GENERAL
REQUIREMENTS.
new text end

new text begin All light rail transit and commuter rail planning shall conform to the requirements
of the Federal Transit Administration, including the Cost Effectiveness Index where
applicable, through all phases of the process.
new text end

Sec. 26.

Minnesota Statutes 2008, section 473.3997, is amended to read:

473.3997 FEDERAL FUNDING; LIGHT RAIL TRANSIT.

(a) Upon completion of the alternatives analysis and draft environmental impact
statement, and selection of the locally preferred alternative, for each light rail transit
facility, the responsible authority may prepare an application for federal assistance for the
light rail transit facility. If the commissioner is the responsible authority, the application
must be reviewed and approved by the deleted text begin Metropolitan Council deleted text end new text begin Minnesota Transit Authority new text end
before it is submitted by the commissioner. In reviewing the application the deleted text begin council deleted text end new text begin
authority new text end must consider the operating cost estimate developed under section 473.3994,
subdivision 9.

(b) Except for the designated responsible authority for a particular light rail transit
facility, no political subdivision in the metropolitan area may on its own apply for federal
assistance for light rail transit planning or construction.

Sec. 27.

Minnesota Statutes 2008, section 473.405, is amended to read:

473.405 POWERS.

Subdivision 1.

General.

The deleted text begin Metropolitan Council deleted text end new text begin Minnesota Transit Authority new text end
has the powers and duties prescribed by this section and sections 473.407 to 473.449 and
all powers necessary or convenient to discharge its duties.

Subd. 3.

Condemnation.

The deleted text begin council deleted text end new text begin authority new text end may for transit purposes acquire
property, franchises, easements, or property rights or interests of any kind by condemnation
proceedings pursuant to chapter 117. Except as provided in subdivision 9, the deleted text begin council deleted text end new text begin
authority new text end may take possession of any property for which condemnation proceedings have
been commenced at any time after the filing of the petition describing the property in the
proceedings. The deleted text begin council deleted text end new text begin authority new text end may contract with an operator or other persons for the
use by the operator or person of any property under the deleted text begin council's deleted text end new text begin authority's new text end control.

Subd. 4.

Transit systems.

The deleted text begin council deleted text end new text begin authority new text end may engineer, construct, equip, and
operate transit and paratransit systems, deleted text begin projects, or any parts thereof, including road lanes
or rights-of-way, terminal facilities, maintenance and garage facilities, ramps, parking
areas, and any other deleted text end new text begin including any new text end facilities useful for or related to any public transit or
paratransit system or project. The deleted text begin council deleted text end new text begin authority new text end may sell or lease naming rights with
regard to light rail transit stations new text begin and other transit facilities new text end and apply revenues from sales
or leases to light rail transit operating costs.

Subd. 5.

Acquisition of transit systems.

The deleted text begin council deleted text end new text begin authority new text end may acquire by
purchase, lease, gift, or condemnation proceedings any existing public transit system
or any part thereof, including all or any part of the plant, equipment, shares of stock,
property, real, personal, or mixed, rights in property, reserve funds, special funds,
franchises, licenses, patents, permits and papers, documents and records belonging to any
operator of a public transit system within the metropolitan area, and may in connection
therewith assume any or all liabilities of any operator of a public transit system. The
deleted text begin council deleted text end new text begin authority new text end may take control of and operate a system immediately following the
filing and approval of the initial petition for condemnation, if the deleted text begin council deleted text end new text begin authority new text end , in its
discretion, determines this to be necessary, and may take possession of all right, title and
other powers of ownership in all properties and facilities described in the petition. Control
must be taken by resolution which is effective upon service of a copy on the condemnee
and the filing of the resolution in the condemnation action. In the determination of the
fair value of the existing public transit system, there must not be included any value
attributable to expenditures for improvements made by the former Metropolitan Transit
Commission deleted text begin or council deleted text end new text begin , the Metropolitan Council, or the authority new text end .

The deleted text begin council deleted text end new text begin authority new text end may continue or terminate within three months of acquisition
any advertising contract in existence by and between any advertiser and a transit system
that the deleted text begin council deleted text end new text begin authority new text end has acquired. If the deleted text begin council deleted text end new text begin authority new text end determines to terminate
the advertising contract, it shall acquire all of the advertiser's rights under the contract by
purchase or eminent domain proceedings as provided by law.

Subd. 9.

Condemnation of public or public service corporation property.

The
fact that property is owned by or is in charge of a public agency or a public service
corporation organized for a purpose specified in section 301B.01, or is already devoted to
a public use or to use by the corporation or was acquired therefor by condemnation may
not prevent its acquisition by the deleted text begin council deleted text end new text begin authority new text end by condemnation, but if the property
is in actual public use or in actual use by the corporation for any purpose of interest or
benefit to the public, the taking by the deleted text begin council deleted text end new text begin authority new text end by condemnation may not be
authorized unless the court finds and determines that there is greater public necessity for
the proposed use by the deleted text begin council deleted text end new text begin authority new text end than for the existing use.

Subd. 10.

Voluntary transfer of public property.

Any state department or other
agency of the state government or any county, municipality, or other public agency
may sell, lease, grant, transfer, or convey to the deleted text begin council deleted text end new text begin authority new text end , with or without
consideration, any facilities or any part or parts thereof or any real or personal property or
interest therein which may be useful to the deleted text begin council deleted text end new text begin authority new text end for any authorized purpose.
In any case where the construction of a facility has not been completed, the public agency
concerned may also transfer, sell, assign, and set over to the deleted text begin council deleted text end new text begin authority new text end , with or
without consideration, any existing contract for the construction of the facilities.

Subd. 12.

Management contracts.

Notwithstanding any of the other provisions
of this section and sections 473.407 to 473.449, the deleted text begin council deleted text end new text begin authority new text end may, in lieu of
directly operating any public transit system or any part thereof, enter into contracts for
management services. The contracts may provide for compensation, incentive fees, the
employment of personnel, the services provided, and other terms and conditions that the
deleted text begin council deleted text end new text begin authority new text end deems proper. The contracts must provide that the compensation of
personnel who work full time or substantially full time providing management or other
services for the deleted text begin council deleted text end new text begin authority new text end is public data under chapter 13.

The deleted text begin council deleted text end new text begin authority new text end may not permit a contract manager to supervise or manage
internal audit activities. Internal audit activity must be supervised and managed directly
by the deleted text begin council deleted text end new text begin authority new text end . The deleted text begin council deleted text end new text begin authority new text end shall advertise for bids and select contracts
for management services through competitive bidding. deleted text begin The term of the contract may not
be longer than two years. deleted text end The contract must include clear operating objectives, stating the
service policies and goals of the deleted text begin council deleted text end new text begin authority new text end in terms of the movement of various
passenger groups, and performance criteria, by means of which success in achieving the
operating objectives can be measured. The deleted text begin council deleted text end new text begin authority new text end shall consider and determine
the feasibility and desirability of having all its transit management services provided
internally by employees of the deleted text begin council deleted text end new text begin authority new text end .

The employees of any public transit system operated pursuant to the provisions of
this subdivision for the purpose of resolving any dispute arising under any existing or new
collective bargaining agreement relating to the terms or conditions of their employment,
may either engage in a concerted refusal to work or to invoke the processes of final and
binding arbitration as provided by chapter 572, subject to any applicable provisions of
the agreement not inconsistent with law.

Subd. 15.

Relocation of displaced persons.

The deleted text begin council deleted text end new text begin authority new text end may plan for and
assist in the relocation of individuals, families, business concerns, nonprofit organizations,
and others displaced by operations of the deleted text begin council deleted text end new text begin authority new text end , and may make relocation
payments in accordance with federal regulations.

Sec. 28.

Minnesota Statutes 2008, section 473.4051, subdivision 1, is amended to read:

Subdivision 1.

Operator.

The deleted text begin council deleted text end new text begin authority new text end shall operate all light rail transit
facilities and services located in the metropolitan area upon completion of construction of
the facilities and the commencement of revenue service using the facilities. The deleted text begin council deleted text end new text begin
authority new text end may not allow the commencement of revenue service until after an appropriate
period of acceptance testing to ensure safe and satisfactory performance. In assuming the
operation of the system, the deleted text begin council deleted text end new text begin authority new text end must comply with section 473.415. The
deleted text begin council deleted text end new text begin authority new text end shall coordinate operation of the light rail transit system with bus service
to avoid duplication of service on a route served by light rail transit and to ensure the
widest possible access to light rail transit lines in both suburban and urban areas by means
of a feeder bus system.

Sec. 29.

Minnesota Statutes 2008, section 473.407, subdivision 1, is amended to read:

Subdivision 1.

Authorization.

The deleted text begin council deleted text end new text begin authority new text end may appoint peace
officers, as defined in section 626.84, subdivision 1, paragraph (c), and establish a law
enforcement agency, as defined in section 626.84, subdivision 1, paragraph (f), known
as the Metropolitan Transit Police, to police its transit property and routes, to carry out
investigations, and to make arrests under sections 629.30 and 629.34. The jurisdiction
of the law enforcement agency is limited to offenses relating to deleted text begin council deleted text end new text begin authority new text end transit
property, equipment, employees, and passengers. The jurisdiction of the Metropolitan
Transit Police shall include traffic lanes designed for bus or transit use, freeway or
expressway shoulders in the seven-county metropolitan area used by authorized transit
buses and metro mobility buses under section 169.306, and high-occupancy vehicle
lanes used by transit buses. Upon request from, or under an agreement with, any law
enforcement agency and subject to the availability of its personnel and other resources,
the Metropolitan Transit Police may exercise general law enforcement agency authority
to assist any law enforcement agency in implementing or carrying out law enforcement
activities, programs, or initiatives. If the commissioner of transportation contracts with
the deleted text begin Metropolitan Council deleted text end new text begin Minnesota Transit Authority new text end for operation of commuter rail
facilities under section 174.90, the jurisdiction of the Metropolitan Transit Police extends
to offenses relating to the operation, property, facilities, equipment, employees, and
passengers of the commuter rail facilities located in and outside of the metropolitan area.

Sec. 30.

Minnesota Statutes 2008, section 473.407, subdivision 3, is amended to read:

Subd. 3.

Policy for notice of investigations.

The transit police must develop a
policy for notifying the law enforcement agency with primary jurisdiction when it has
initiated surveillance or investigation of any person within the jurisdiction of that agency.
The deleted text begin council deleted text end new text begin authority new text end shall train all of its peace officers regarding the application of this
policy.

Sec. 31.

Minnesota Statutes 2008, section 473.407, subdivision 4, is amended to read:

Subd. 4.

Chief law enforcement officer.

The deleted text begin regional administrator deleted text end new text begin chair of
the Minnesota Transit Authority new text end shall appoint a peace officer employed full time to
be the chief law enforcement officer and to be responsible for the management of the
metropolitan transit police. The chief law enforcement officer shall possess the necessary
police and management experience to manage a law enforcement agency. The chief law
enforcement officer may appoint, discipline, and discharge all transit police personnel.
All police managerial and supervisory personnel must be full-time employees of the
Metropolitan Transit Police. Supervisory personnel must be on duty and available any
time transit police are on duty. The chief law enforcement officer may not hire part-time
peace officers as defined in section 626.84, subdivision 1, paragraph (d), except that the
chief may appoint peace officers to work on a part-time basis not to exceed 30 full-time
equivalents. A part-time officer must maintain an active peace officer license with the
officer's full-time law enforcement employer.

Sec. 32.

Minnesota Statutes 2008, section 473.407, subdivision 5, is amended to read:

Subd. 5.

Emergencies.

(a) The deleted text begin council deleted text end new text begin authority new text end shall ensure that all emergency
vehicles used by transit police are equipped with radios capable of receiving and
transmitting on the same frequencies utilized by the law enforcement agencies that have
primary jurisdiction.

(b) When the transit police receive an emergency call they shall notify the public
safety agency with primary jurisdiction and coordinate the appropriate response.

(c) Transit police officers shall notify the primary jurisdictions of their response
to any emergency.

Sec. 33.

Minnesota Statutes 2008, section 473.408, is amended to read:

473.408 FARE POLICY.

Subd. 2.

Fare policy.

(a) Fares and fare collection systems shall be established and
administered to accomplish the following purposes:

(1) to encourage and increase transit and paratransit ridership with an emphasis
on regular ridership;

(2) to restrain increases in the average operating subsidy per passenger; new text begin and
new text end

(3) deleted text begin to ensure that no riders on any route pay more in fares than the average cost of
providing the service on that route;
deleted text end

deleted text begin (4) deleted text end to ensure that operating revenues are proportioned to the cost of providing the
service so as to reduce any disparity in the subsidy per passenger on routes in the transit
system deleted text begin ; and
deleted text end

deleted text begin (5) to implement the social fares as set forth in subdivision 2b deleted text end .

(b) The plan must contain a statement of the policies that will govern the imposition
of user charges for various types of transit service and the policies that will govern
decisions by the deleted text begin council deleted text end new text begin authority new text end to change fare policy.

Subd. 2a.

Regular route fares.

The deleted text begin council deleted text end new text begin authority new text end shall establish and enforce
uniform fare policies for regular route transit in the metropolitan area. The policies
must be consistent with the requirements of this section and the deleted text begin council's deleted text end new text begin authority's new text end
transportation policy plan. The deleted text begin council deleted text end new text begin authority new text end and other operators shall charge a base
fare and any surcharges for peak hours and distance of service in accordance with the
deleted text begin council's deleted text end new text begin authority's new text end fares policies. The deleted text begin council deleted text end new text begin authority new text end shall approve all fare schedules.

deleted text begin Subd. 2b. deleted text end

deleted text begin Social fares. deleted text end

deleted text begin For the purposes of raising revenue for improving public
safety on transit vehicles and at transit hubs or stops, the council shall review and may
adjust its social fares as they relate to passengers under the age of 18 during high crime
times provided that the increased revenues are dedicated to improving the safety of all
passengers.
deleted text end

Subd. 4.

Circulation fares.

The deleted text begin council deleted text end new text begin authority new text end and other operators may charge a
reduced fare for service on any route providing circulation service in a downtown area or
community activity center. The deleted text begin council deleted text end new text begin authority new text end and other operators shall not contribute
more than 50 percent of the operating deficit of any such route that is confined to a
downtown area or community activity center. The boundaries of service districts eligible
for reduced fares under this subdivision must be approved by the deleted text begin council deleted text end new text begin authority new text end .

Subd. 6.

Monthly passes.

The deleted text begin council deleted text end new text begin authority new text end may offer monthly passes for
regular route bus service for sale to the general public.

Subd. 7.

Employee discount passes.

The deleted text begin council deleted text end new text begin authority new text end may offer passes for
regular route bus service for sale to employers at a special discount.

Subd. 8.

Charitable organization discount passes.

The deleted text begin council deleted text end new text begin authority new text end may offer
passes, including tokens, for regular route bus service for sale to charitable organizations,
described in section 501(c)(3) of the Internal Revenue Code, at a special discount.

Subd. 9.

Youth discount passes.

(a) The deleted text begin council deleted text end new text begin authority new text end may offer passes,
including tokens, for regular route bus service to charitable organizations, described in
section 501(c)(3) of the Internal Revenue Code, free of charge. Any passes provided
under this subdivision must be:

(1) distributed to and used solely by a person who is under 16 years of age; and

(2) restricted to use on a bus that is not operating at full capacity at the time of
use of the bus pass.

(b) The deleted text begin council deleted text end new text begin authority new text end may establish additional requirements and terms of use of
the passes, including but not limited to charging a fee to the charitable organization for
any printing or production costs, restricting times of bus pass use to certain or nonpeak
hours of operation, and establishing oversight and auditing of the charitable organization
with regard to bus pass distribution and use.

Sec. 34.

Minnesota Statutes 2008, section 473.409, is amended to read:

473.409 AGREEMENTS WITH deleted text begin COUNCIL deleted text end new text begin AUTHORITY new text end ;
ENCOURAGEMENT OF TRANSIT USE.

A state department or agency, including the legislative branch, any local
governmental unit, or a metropolitan agency may enter into an agreement with the deleted text begin council deleted text end new text begin
authority new text end and other operators for the purpose of encouraging the use of transit by its
employees residing in the metropolitan area. The agreement may provide for, among other
things: (a) the advance purchase of tokens, tickets or other devices from the deleted text begin council deleted text end new text begin
authority new text end or other operator for use in lieu of fares on vehicles operated by the deleted text begin council deleted text end new text begin
authority new text end or other operator; and (b) special transit service for employees to and from their
place of employment, at fares to be agreed upon by the contracting parties. The tokens,
tickets, or other devices or services may be made available to employees at reduced rates.
Any such agreement and arrangement by a state department or agency shall be submitted
to the commissioner of administration for approval before execution. Any operating
deficits or subsidy resulting from such agreements shall be assumed by the contracting
department, agency, governmental unit, or other commission, unless otherwise provided in
an agreement approved by the deleted text begin council deleted text end new text begin authority new text end .

Sec. 35.

Minnesota Statutes 2008, section 473.411, is amended to read:

473.411 TRANSIT AND HIGHWAY SYSTEMS.

Subd. 3.

Services of Department of Transportation.

The deleted text begin council deleted text end new text begin authority new text end may
make use of engineering and other technical and professional services, including regular
staff and qualified consultants, which the commissioner of transportation can furnish, upon
fair and reasonable reimbursement for the cost thereof; provided, that the deleted text begin council deleted text end new text begin authority new text end
has final authority over the employment of any services from other sources which it may
deem necessary for such purposes. The commissioner of transportation may furnish all
engineering, legal, and other services, if so requested by the deleted text begin council deleted text end new text begin authority new text end and upon
fair and reasonable reimbursement for the cost thereof by the deleted text begin council deleted text end new text begin authority new text end , for the
purposes stated in this subdivision, including the acquisition by purchase, condemnation,
or otherwise in the name of the deleted text begin council deleted text end new text begin authority new text end of all lands, waters, easements, or other
rights or interests in lands or waters required by the deleted text begin council deleted text end new text begin authority new text end . No purchase of
service agreements may be made under this subdivision which are not included in the
budget of the deleted text begin council deleted text end new text begin authority new text end .

Subd. 4.

State highways; joint use for transit and highway purposes.

Wherever
the joint construction or use of a state highway is feasible in fulfilling the purposes of
sections 473.405 to 473.449, the deleted text begin council deleted text end new text begin authority new text end shall enter into an agreement with the
commissioner of transportation therefor, evidenced by a memorandum setting forth the
terms of the agreement. Either the deleted text begin council deleted text end new text begin authority new text end or the commissioner of transportation
may acquire any additional lands, waters, easements or other rights or interests required
for joint use in accordance with the agreement, or joint acquisition may be made by
condemnation as provided by section 117.016 and the provisions of sections 473.405
to 473.449. Under the agreement each party shall pay to the other party reasonable
compensation for the costs of any services performed at the request of the other party
which may include any costs of engineering, design, acquisition of property, construction
of the facilities, and for the use thereof so far as attributable to and necessary for the
purposes. The deleted text begin council deleted text end new text begin authority new text end may not agree to acquisitions or expenditures under this
subdivision which are not included in its budget.

Subd. 5.

Use of public roadways and appurtenances.

The deleted text begin council deleted text end new text begin authority new text end may
use for the purposes of sections 473.405 to 473.449 upon the conditions stated in this
subdivision any state highway or other public roadway, parkway, or lane, or any bridge
or tunnel or other appurtenance of a roadway, without payment of any compensation,
provided the use does not interfere unreasonably with the public use or maintenance of
the roadway or appurtenance or entail any substantial additional costs for maintenance.
The provisions of this subdivision do not apply to the property of any common carrier
railroad or common carrier railroads. The consent of the public agency in charge of such
state highway or other public highway or roadway or appurtenance is not required; except
that if the deleted text begin council deleted text end new text begin authority new text end seeks to use a designated parkway for regular route service
in the city of Minneapolis, it must obtain permission from and is subject to reasonable
limitations imposed by a joint board consisting of two representatives from the deleted text begin council deleted text end new text begin
authority new text end , two members of the board of park commissioners, and a fifth member jointly
selected by the representatives of the deleted text begin council deleted text end new text begin authority new text end and the park board.

The board of park commissioners and the deleted text begin council deleted text end new text begin authority new text end may designate persons to
sit on the joint board. In considering a request by the deleted text begin council deleted text end new text begin authority new text end to use designated
parkways for additional routes or trips, the joint board consisting of the deleted text begin council deleted text end new text begin authority new text end
or their designees, the board of park commissioners or their designees, and the fifth
member, shall base its decision to grant or deny the request based on the criteria to be
established by the joint board. The decision to grant or deny the request must be made
within 45 days of the date of the request. The park board must be notified immediately
by the deleted text begin council deleted text end new text begin authority new text end of any temporary route detours. If the park board objects to the
temporary route detours within five days of being notified, the joint board must convene
and decide whether to grant the request, otherwise the request is deemed granted. If the
agency objects to the proposed use or claims reimbursement from the deleted text begin council deleted text end new text begin authority new text end for
additional cost of maintenance, it may commence an action against the deleted text begin council deleted text end new text begin authority new text end
in the district court of the county wherein the highway, roadway, or appurtenance, or
major portion thereof, is located. The proceedings in the action must conform to the
Rules of Civil Procedure applicable to the district courts. The court shall sit without jury.
If the court determines that the use in question interferes unreasonably with the public
use or maintenance of the roadway or appurtenance, it shall enjoin the use by the deleted text begin council deleted text end new text begin
authority new text end . If the court determines that the use in question does not interfere unreasonably
with the public use or maintenance of the roadway or appurtenance, but that it entails
substantial additional maintenance costs, the court shall award judgment to the agency for
the amount of the additional costs. Otherwise the court shall award judgment to the deleted text begin council deleted text end new text begin
authority new text end . An aggrieved party may appeal from the judgment of the district court in the
same manner as is provided for such appeals in other civil actions. The deleted text begin council deleted text end new text begin authority new text end
may also use land within the right-of-way of any state highway or other public roadway
for the erection of traffic control devices, other signs, and passenger shelters upon the
conditions stated in this subdivision and subject only to the approval of the commissioner
of transportation where required by statute, and subject to the express provisions of other
applicable statutes and to federal requirements where necessary to qualify for federal aid.

Sec. 36.

Minnesota Statutes 2008, section 473.415, subdivision 1, is amended to read:

Subdivision 1.

Includes no worse off clause.

If the deleted text begin council deleted text end new text begin authority new text end acquires
an existing transit system, the deleted text begin council deleted text end new text begin authority new text end shall assume and observe all existing
labor contracts and pension obligations. All employees of such system except executive
and administrative officers who are necessary for the operation thereof by the deleted text begin council deleted text end new text begin
authority new text end shall be transferred to and appointed as employees of the deleted text begin council deleted text end new text begin authority new text end for
the purposes of the transit system, subject to all the rights and benefits of sections 473.405
to 473.449. Such employees shall be given seniority credit and sick leave, vacation,
insurance, and pension credits in accordance with the records or labor agreements from the
acquired transit system. The deleted text begin council deleted text end new text begin authority new text end shall assume the obligations of any transit
system acquired by it with regard to wages, salaries, hours, working conditions, sick
leave, health and welfare and pension or retirement provisions for employees. The deleted text begin council deleted text end new text begin
authority new text end and the employees, through their representatives for collective bargaining
purposes, shall take whatever action may be necessary to have pension trust funds
presently under the joint control of the acquired system and the participating employees
through their representatives transferred to the trust fund to be established, maintained and
administered jointly by the deleted text begin council deleted text end new text begin authority new text end and the participating employees through their
representatives. No employee of any acquired system who is transferred to a position with
the deleted text begin council deleted text end new text begin authority new text end shall by reason of such transfer be placed in any worse position with
respect to workers' compensation, pension, seniority, wages, sick leave, vacation, health
and welfare insurance or any other benefits than the employee enjoyed as an employee
of such acquired system.

Sec. 37.

Minnesota Statutes 2008, section 473.416, is amended to read:

473.416 RIGHTS OF SYSTEM WORKERS IN TAKEOVER OF TRANSIT
SYSTEM.

Whenever the deleted text begin council deleted text end new text begin authority new text end directly operates any public transit system, or any
part thereof, or enters into any management contract or other arrangement for the operation
of a system, the deleted text begin council deleted text end new text begin authority new text end shall take the action necessary to extend to employees
of the affected public transit systems, in accordance with seniority, the first opportunity
for reasonably comparable employment in any available nonsupervisory jobs in respect
to such operations for which they can qualify after a reasonable training period. The
employment must not result in any worsening of the employee's position in the employee's
former employment nor any loss of wages, hours, working conditions, seniority, fringe
benefits, and rights and privileges pertaining thereto. The deleted text begin council deleted text end new text begin authority new text end may enter
into an agreement specifying fair and equitable arrangements to protect the interests of
employees who may be affected if the deleted text begin council deleted text end new text begin authority new text end should acquire any interest in or
purchase any facilities or other property of a privately owned and operated transit system,
or construct, improve, or reconstruct any facilities or other property acquired from any
system, or provide by contract or otherwise for the operation of transportation facilities or
equipment in competition with, or supplementary to, the service provided by an existing
transit system. The agreement, specifying the terms and conditions of the protective
arrangements, must comply with any applicable requirements of this chapter, and with the
requirements of any federal law or regulation if federal aid is involved. The agreement
may provide for final and binding arbitration of any dispute.

Sec. 38.

Minnesota Statutes 2008, section 473.42, is amended to read:

473.42 EMPLOYER CONTRIBUTIONS FOR CERTAIN EMPLOYEES.

Notwithstanding any contrary provisions of section 352.029, the deleted text begin council deleted text end new text begin authority new text end
shall make the employer contributions required pursuant to section 352.04, subdivision
3, for any employee who was on authorized leave of absence from the transit operating
division of the former Metropolitan Transit Commission who is employed by the labor
organization which is the exclusive bargaining agent representing employees of the Office
of Transit Operations and who is covered by the Minnesota State Retirement System in
addition to all other employer contributions the deleted text begin council deleted text end new text begin authority new text end is required to make.

Sec. 39.

Minnesota Statutes 2008, section 473.436, is amended to read:

473.436 deleted text begin COUNCIL deleted text end new text begin AUTHORITY new text end ; BORROWING MONEY.

Subd. 2.

Legal investments.

Certificates of indebtedness, bonds, or other
obligations issued by the deleted text begin council deleted text end new text begin authority new text end to which tax levies have been pledged pursuant
to section 473.446, subdivision 1, shall be proper for investment of any funds by any bank,
savings bank, savings association, credit union, trust company, insurance company or
public or municipal corporation, and may be pledged by any bank, savings bank, savings
association, credit union, or trust company as security for the deposit of public moneys.

Subd. 3.

Tax exempt.

Certificates of indebtedness, bonds, or other obligations
of the deleted text begin council deleted text end new text begin authority new text end shall be deemed and treated as instrumentalities of a public
government agency.

Subd. 6.

Temporary borrowing.

On or after the first day of any fiscal year,
the deleted text begin council deleted text end new text begin authority new text end may borrow money which may be used or expended by the
deleted text begin council deleted text end new text begin authority new text end for any purpose, including but not limited to current expenses, capital
expenditures and the discharge of any obligation or indebtedness of the deleted text begin council deleted text end new text begin authority new text end .
The indebtedness must be represented by a note or notes which may be issued from time
to time in any denomination and sold at public or private sale pursuant to a resolution
authorizing the issuance. The resolution must set forth the form and manner of execution
of the notes and shall contain other terms and conditions the deleted text begin council deleted text end new text begin authority new text end deems
necessary or desirable to provide security for the holders of the notes. The note or
notes are payable from committed or appropriated money from taxes, grants or loans
of the state or federal government made to the deleted text begin council deleted text end new text begin authority new text end , or other revenues of
the deleted text begin council deleted text end new text begin authority new text end , and the money may be pledged to the payment of the notes. The
deleted text begin council deleted text end new text begin authority new text end is authorized to pledge to the payment of the note or notes taxes levied
by it under section 473.446, subdivision 1, clause (a), and if taxes are so pledged the
deleted text begin council deleted text end new text begin authority new text end shall transfer amounts received from the levy to the deleted text begin council deleted text end new text begin authority new text end
for payment of the note or notes. To the extent the notes are not paid from the grant or
loan money pledged for the payment thereof, the principal and interest of the notes must
be paid from any taxes received by the deleted text begin council deleted text end new text begin authority new text end and any income and revenue
received by or accrued to the deleted text begin council deleted text end new text begin authority new text end during the fiscal year in which the note or
notes were issued, or other money of the deleted text begin council deleted text end new text begin authority new text end lawfully available therefor.

Sec. 40.

Minnesota Statutes 2008, section 473.446, is amended to read:

473.446 TRANSIT TAX LEVIES.

Subdivision 1.

Metropolitan area transit tax.

(a) For the purposes of sections
473.405 to 473.449 and the metropolitan transit system, except as otherwise provided in
this subdivision, the deleted text begin council deleted text end new text begin authority new text end shall levy each year upon all taxable property within
the metropolitan area, defined in section 473.121, subdivision 2, a transit tax consisting of:

(1) an amount necessary to provide full and timely payment of certificates of
indebtedness, bonds, including refunding bonds or other obligations issued or to be issued
under section 473.39 by the deleted text begin council deleted text end new text begin authority new text end for purposes of acquisition and betterment
of property and other improvements of a capital nature and to which the deleted text begin council deleted text end new text begin authority new text end
has specifically pledged tax levies under this clause; and

(2) an additional amount necessary to provide full and timely payment of certificates
of indebtedness issued by the deleted text begin council deleted text end new text begin authority new text end , after consultation with the commissioner
of finance, if revenues to the metropolitan area transit fund in the fiscal year in which
the indebtedness is issued increase over those revenues in the previous fiscal year by a
percentage less than the percentage increase for the same period in the revised Consumer
Price Index for all urban consumers for the St. Paul-Minneapolis metropolitan area
prepared by the United States Department of Labor.

(b) Indebtedness to which property taxes have been pledged under paragraph (a),
clause (2), that is incurred in any fiscal year may not exceed the amount necessary to make
up the difference between (1) the amount that the deleted text begin council deleted text end new text begin authority new text end received or expects
to receive in that fiscal year from the metropolitan area transit fund and (2) the amount
the deleted text begin council deleted text end new text begin authority new text end received from that fund in the previous fiscal year multiplied by
the percentage increase for the same period in the revised Consumer Price Index for all
urban consumers for the St. Paul-Minneapolis metropolitan area prepared by the United
States Department of Labor.

Subd. 2.

Transit taxing district.

The metropolitan transit taxing district deleted text begin is hereby
designated as that portion of the metropolitan transit area lying deleted text end new text begin includes the counties of
Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. The transit taxing
district also includes any county in which one-third or more of the residents work new text end within
the following named cities, towns, or unorganized territory within the counties indicated:

(a) Anoka County. Anoka, Blaine, Centerville, Columbia Heights, Coon Rapids,
Fridley, Circle Pines, Hilltop, Lexington, Lino Lakes, Spring Lake Park;

(b) Carver County. Chanhassen, the city of Chaska;

(c) Dakota County. Apple Valley, Burnsville, Eagan, Inver Grove Heights, Lilydale,
Mendota, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake, West St. Paul;

(d) Ramsey County. All of the territory within Ramsey County;

(e) Hennepin County. Bloomington, Brooklyn Center, Brooklyn Park, Champlin,
Chanhassen, Crystal, Deephaven, Eden Prairie, Edina, Excelsior, Golden Valley,
Greenwood, Hopkins, Long Lake, Maple Grove, Medicine Lake, Minneapolis,
Minnetonka, Minnetonka Beach, Mound, New Hope, Orono, Osseo, Plymouth, Richfield,
Robbinsdale, St. Anthony, St. Louis Park, Shorewood, Spring Park, Tonka Bay, Wayzata,
Woodland, the unorganized territory of Hennepin County;

(f) Scott County. Prior Lake, Savage, Shakopee;

(g) Washington County. Baytown, the city of Stillwater, White Bear Lake, Bayport,
Birchwood, Cottage Grove, Dellwood, Lake Elmo, Landfall, Mahtomedi, Newport,
Oakdale, Oak Park Heights, Pine Springs, St. Paul Park, Willernie, Woodbury.

The deleted text begin Metropolitan Council deleted text end new text begin Minnesota Transit Authority new text end in its sole discretion may
provide transit service by contract beyond the boundaries of the metropolitan transit
taxing district or to cities and towns within the taxing district which are receiving financial
assistance under section 473.388, upon petition therefor by an interested city, township
or political subdivision within the metropolitan transit area. The deleted text begin Metropolitan Council deleted text end new text begin
Minnesota Transit Authority new text end may establish such terms and conditions as it deems
necessary and advisable for providing the transit service, including such combination of
fares and direct payments by the petitioner as will compensate the deleted text begin council deleted text end new text begin authority new text end for the
full capital and operating cost of the service and the related administrative activities of the
deleted text begin council deleted text end new text begin authority new text end . The amount of the levy made by any municipality to pay for the service
shall be disregarded when calculation of levies subject to limitations is made, provided
that cities and towns receiving financial assistance under section 473.388 shall not make
a special levy under this subdivision without having first exhausted the available local
transit funds as defined in section 473.388. The deleted text begin council deleted text end new text begin authority new text end shall not be obligated to
extend service beyond the boundaries of the taxing district, or to cities and towns within
the taxing district which are receiving financial assistance under section 473.388, under
any law or contract unless or until payment therefor is received.

Subd. 2a.

Rights of debt holders.

The provisions of subdivisions 1 and 2 or any
other law changing the boundaries of the metropolitan transit taxing district or reducing
the levy otherwise required to be levied within the district shall not be deemed to impair
the rights of holders of outstanding indebtedness to require the levy of property taxes,
if necessary to provide for any deficiency in accordance with the conditions of such
indebtedness, on all property within the limits of the metropolitan transit taxing district as
such limits were in effect at the date of issuance of such indebtedness.

Subd. 3.

Certification and collection.

Each county treasurer shall collect and make
settlement of the taxes levied under subdivisions 1 and 1a with the treasurer of the deleted text begin council deleted text end new text begin
authority new text end . The levy of transit taxes pursuant to this section shall not affect the amount
or rate of taxes which may be levied by any county or municipality or by the deleted text begin council deleted text end new text begin
authority new text end for other purposes authorized by law and shall be in addition to any other
property tax authorized by law.

Subd. 7.

Rights of holders of debt; after 1983 levy.

Beginning for taxes levied in
1984, payable in 1985, and for each succeeding year, as part of its levy made pursuant to
subdivisions 1 and 6, the deleted text begin council deleted text end new text begin authority new text end shall levy the amounts necessary to provide
full and timely payment of certificates of indebtedness, bonds, and other obligations of
the former Metropolitan Transit Commission, until all debt of the commission is fully
discharged and transfer the proceeds to the appropriate deleted text begin council deleted text end new text begin authority new text end account for
payment of its obligations. The taxes must be levied, certified, and collected in accordance
with the terms and conditions of the indebtedness. Nothing in Laws 1984, chapter 654
may impair the rights of holders of valid obligations of the former Metropolitan Transit
Commission to require a levy of property taxes. The deleted text begin council deleted text end new text begin authority new text end shall take the
actions necessary to comply with the terms and conditions of the obligations, including if
necessary the levy of property taxes to provide for a deficiency.

Subd. 8.

State review.

The commissioner of revenue shall certify the deleted text begin council's deleted text end new text begin
authority's new text end levy limitation under this section to the deleted text begin council deleted text end new text begin authority new text end by August 1 of
the levy year. The deleted text begin council deleted text end new text begin authority new text end must certify its proposed property tax levy under
this section to the commissioner of revenue by September 1 of the levy year. The
commissioner of revenue shall annually determine whether the property tax for transit
purposes certified by the deleted text begin council deleted text end new text begin authority new text end for levy following the adoption of its proposed
budget is within the levy limitation imposed by subdivisions 1 and 1b. The commissioner
shall also annually determine whether the transit tax imposed on all taxable property
within the metropolitan transit area but outside of the metropolitan transit taxing district
is within the levy limitation imposed by subdivision 1a. The determination must be
completed prior to September 10 of each year. If current information regarding market
valuation in any county is not transmitted to the commissioner in a timely manner, the
commissioner may estimate the current market valuation within that county for purposes
of making the calculations.

Sec. 41.

Minnesota Statutes 2008, section 473.448, is amended to read:

473.448 TRANSIT ASSETS EXEMPT FROM TAX BUT MUST PAY
ASSESSMENTS.

(a) Notwithstanding any other provision of law to the contrary, the properties,
moneys, and other assets of the deleted text begin council deleted text end new text begin authority new text end used for transit operations or for special
transportation services and all revenues or other income from the deleted text begin council's deleted text end new text begin authority's new text end
transit operations or special transportation services are exempt from all taxation, licenses,
or fees imposed by the state or by any county, municipality, political subdivision, taxing
district, or other public agency or body of the state, except to the extent that the property is
subject to the sales and use tax under chapter 297A.

(b) Notwithstanding paragraph (a), the deleted text begin council's deleted text end new text begin authority's new text end transit properties are
subject to special assessments levied by a political subdivision for a local improvement in
amounts proportionate to and not exceeding the special benefit received by the properties
from the improvement.

Sec. 42.

Minnesota Statutes 2008, section 473.449, is amended to read:

473.449 ACT EXCLUSIVE.

The exercise by the deleted text begin council deleted text end new text begin authority new text end of the powers provided in sections 473.405 to
473.449 shall not be subject to regulation by or the jurisdiction or control of any other
public body or agency, either state, county, or municipal, except as specifically provided
in this chapter.

Sec. 43. new text begin STATEWIDE MASS TRANSIT PLAN.
new text end

new text begin The Minnesota Transit Authority shall prepare a comprehensive integrated statewide
mass transit plan and report that plan to the legislature by January 1, 2010. The plan shall
include the requirement that local governments adopt land use and subdivision regulations
to reduce reliance on automobiles by allowing transit-oriented developments on lands
along dedicated transit routes, and to encourage redevelopment of existing parking areas
for transit-oriented development.
new text end

Sec. 44. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall replace the term "Metropolitan Council" with
"Minnesota Transit Authority" in Minnesota Statutes, sections 16A.88, subdivision
2; 169.306, paragraph (d), clause (1); 174.30, subdivision 4, paragraph (e); 221.012,
subdivision 38, paragraph (b); 275.065, subdivision 3, paragraph (i), clause (1); and
297A.70, subdivision 2, paragraph (a), clause (4).
new text end

Sec. 45. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 297A.992; 297A.993; 398A.04, subdivisions 2
and 3; 398A.10; 473.384, subdivisions 6 and 7; 473.387; 473.391; 473.399, subdivisions
1, 1a, 4, and 5; 473.3994, subdivisions 1a, 2, 3, 4, 5, 7, 8, 9, 10, and 14; and 473.4461, new text end new text begin and
new text end new text begin Laws 2008, chapter 152, article 6, section 8, new text end new text begin are repealed.
new text end