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HF 1550

as introduced - 90th Legislature (2017 - 2018) Posted on 03/19/2018 04:42pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to transportation; providing for funding of municipal roads; amending
allocation and distribution of certain funds; amending Minnesota Statutes 2016,
sections 16A.152, by adding a subdivision; 97A.055, subdivision 2; 162.145,
subdivision 3; 168.301, subdivision 3; 297A.815, subdivision 3; 297A.94; proposing
coding for new law in Minnesota Statutes, chapter 162.

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

Section 1.

Minnesota Statutes 2016, section 16A.152, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Additional revenues; interest earnings. new text end

new text begin (a) Annually in conjunction with
the November forecast, the commissioner must identify an amount that equals the lesser
of:
new text end

new text begin (1) the total interest and investment income accrued to the general fund in the immediately
preceding fiscal year; or
new text end

new text begin (2) the positive unrestricted general fund balance forecasted for the close of the current
fiscal year.
new text end

new text begin (b) The commissioner must annually transfer the amount identified in paragraph (a)
from the general fund as provided under section 162.085. Any transfers must be accounted
for prior to allocations under subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 2.

Minnesota Statutes 2016, section 97A.055, subdivision 2, is amended to read:


Subd. 2.

Receipts.

The commissioner of management and budget shall credit to the
game and fish fund all money received under the game and fish laws and all income from
state lands acquired by purchase or gift for game or fish purposes, including receipts from:

(1) licenses and permits issued;

(2) fines and forfeited bail;

(3) sales of contraband, wild animals, and other property under the control of the division;

(4) fees from advanced education courses for hunters and trappers;

(5) reimbursements of expenditures by the division;

(6) contributions to the division; and

(7) revenue credited to the game and fish fund under section 297A.94, paragraph deleted text begin (e)deleted text end new text begin (f)new text end ,
clause (1).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 3.

new text begin [162.085] DISTRIBUTION OF CERTAIN MUNICIPAL ROAD FUNDING.
new text end

new text begin (a) Of any funds provided for this section by law, the commissioner of transportation
or public safety, or another commissioner as appropriate, must allocate and deposit the funds
as provided under paragraph (b).
new text end

new text begin (b) From the first $50,000,000 provided for allocation under this section in a fiscal year,
50 percent must be deposited to the larger cities assistance account under section 162.146,
subdivision 1, and 50 percent must be deposited to the small cities assistance account under
section 162.145, subdivision 2. Any additional amount provided for allocation under this
section in a fiscal year must be deposited in the small cities assistance account under section
162.145, subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 4.

Minnesota Statutes 2016, section 162.145, subdivision 3, is amended to read:


Subd. 3.

Administration.

(a) Subject to funds made available by law, the commissioner
shall allocate all funds as provided in subdivision 4 and shall notify the commissioner of
revenue.

(b) Following notification from the commissioner of transportation, the commissioner
of revenue shall distribute the specified funds to cities in the same manner as local
government aid under chapter 477A. An appropriation to the commissioner of transportation
under this section is available to the commissioner of revenue for the purposes specified in
this paragraph.

(c) Notwithstanding other law to the contrary, in order to receive distributions under
this section, a city must conform to the standards in section 477A.017, subdivision 2. A city
that receives funds under this section must make and preserve records necessary to show
that the funds are spent in compliance with subdivision deleted text begin 4deleted text end new text begin 5new text end .

new text begin (d) From funds received in a fiscal year under this section, a city may maintain a balance
over multiple years for the purposes of funding a specific road project or projects in the
future.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 5.

new text begin [162.146] LARGER CITIES ASSISTANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Larger cities assistance account. new text end

new text begin A larger cities assistance account is
created in the special revenue fund. The account consists of funds as provided by law, and
any other money donated, allotted, transferred, or otherwise provided to the account. Money
in the account must be appropriated to the commissioner by law and apportioned among
all the cities that are eligible to receive municipal state-aid street funds.
new text end

new text begin Subd. 2. new text end

new text begin Distribution formula. new text end

new text begin From a larger cities assistance account appropriation,
the commissioner must apportion the money so that each city receives the percentage that
its money needs, as determined by the commissioner under section 162.13, subdivision 3,
bears to the total money needs of all cities that are eligible to receive municipal state-aid
street funds.
new text end

new text begin Subd. 3. new text end

new text begin Use of funds. new text end

new text begin (a) Funds distributed under this section are for construction and
maintenance of roads located within a city.
new text end

new text begin (b) Except for projects on municipal state-aid streets or county state-aid highways, funds
distributed under this section are not subject to state-aid requirements under this chapter,
including but not limited to engineering standards adopted by the commissioner in rules.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 6.

Minnesota Statutes 2016, section 168.301, subdivision 3, is amended to read:


Subd. 3.

Late fee.

In addition to any fee or tax otherwise authorized or imposed upon
the transfer of title for a motor vehicle, the commissioner of public safety shall impose a
$2 additional fee for failure to deliver a title transfer within ten business days.new text begin The
commissioner must deposit funds collected under this subdivision as provided under section
162.085.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 7.

Minnesota Statutes 2016, section 297A.815, subdivision 3, is amended to read:


Subd. 3.

Motor vehicle lease sales tax revenue.

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

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

deleted text begin (c) On or after July 1deleted text end new text begin (b) By July 15new text end of the subsequent fiscal year, the commissioner of
management and budget deleted text begin shalldeleted text end new text begin mustnew text end transfer the deleted text begin net revenuedeleted text end new text begin revenuesnew text end as estimated in
paragraph deleted text begin (b)deleted text end new text begin (a)new text end from the general fund, as follows:

(1) deleted text begin $9,000,000 annually until January 1, 2015, and 50deleted text end new text begin 36.75new text end percent annually deleted text begin thereafterdeleted text end
to the county state-aid highway fund. Notwithstanding any other law to the contrary, the
commissioner of transportation deleted text begin shalldeleted text end new text begin mustnew text end allocate the funds transferred under this clause
to the counties in the metropolitan area, as defined in section 473.121, subdivision 4,
excluding the counties of Hennepin and Ramsey, so that each county deleted text begin shall receive of suchdeleted text end new text begin
receives from that
new text end amount the percentage that its population, as defined in section 477A.011,
subdivision 3, estimated or established by July 15 of the year prior to the current calendar
year, bears to the total population of the counties receiving funds under this clause; deleted text begin and
deleted text end

(2) deleted text begin the remainderdeleted text end new text begin 36.75 percentnew text end to the greater Minnesota transit accountnew text begin ; and
new text end

new text begin (3) four percent as provided under section 162.085new text end .

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the estimate that must
be completed on or before June 30, 2017, for a transfer that occurs on or after July 1, 2017.
new text end

Sec. 8.

Minnesota Statutes 2016, section 297A.94, is amended to read:


297A.94 DEPOSIT OF REVENUES.

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

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

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

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

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

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

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

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

(d)new text begin The commissioner must deposit in the state treasury the revenues collected under
section 297A.64, subdivision 1, and credit them as provided under section 162.085.
new text end

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017, for sales taxes remitted on
or after that date.
new text end