HF 2174

as introduced - 91st Legislature (2019 - 2020) Posted on 03/07/2019 02:47pm

A bill for an act
relating to transportation; redistributing the five percent highway user tax
distribution fund set-aside; establishing a small cities road account and a large
cities road account; appropriating money; amending Minnesota Statutes 2018,
section 161.081, subdivision 1; 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 2018, section 161.081, subdivision 1, is amended to read:

Subdivision 1.

Distribution of five percent.

(a) Pursuant to new text begin the Minnesota Constitution, new text end
article deleted text begin 14 deleted text end new text begin XIV new text end , section 5, deleted text begin of the constitution, deleted text end five percent of the net highway user tax
distribution fund is set aside, and apportioned to the county state-aid highway fund.

(b) That apportionment is further distributed as follows:

(1) 30.5 percent to the town road account created in section 162.081;

(2) 16 percent to the town bridge account, which is created in the state treasury; deleted text begin and
deleted text end

(3) deleted text begin 53.5 deleted text end new text begin 41 new text end percent to the flexible highway account created in subdivision 3 new text begin ; and
new text end

new text begin (4) 12.5 percent to the small cities account created in section 162.082 new text end .

Sec. 2.

new text begin [162.082] SMALL CITIES ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "eligible city" has the meaning
given in section 162.145, subdivision 1, paragraph (b).
new text end

new text begin Subd. 2. new text end

new text begin Account created. new text end

new text begin A small cities account is created in the county state-aid
highway fund.
new text end

new text begin Subd. 3. new text end

new text begin Formula for distribution to counties. new text end

new text begin Funds in the small cities account must
be apportioned to eligible cities in the manner provided in section 162.145, subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Apportionment. new text end

new text begin (a) Upon determining the amount of money to be apportioned
to each county, the commissioner shall also determine the amounts in the small cities account
to be apportioned under subdivision 3. The apportionment under subdivision 3 must be
included in the statement sent to the commissioner of management and budget and the
county auditor and county engineer of each county under section 162.08, subdivision 2.
The amounts so apportioned and allocated to each county from the small cities account must
be paid by the state to the treasurer of each county at the same time that payments are made
under section 162.08, subdivision 2, provided that the amounts must be paid in a sufficient
time to allow the county to distribute the amounts to each small city by March 1 each year.
new text end

new text begin (b) Money distributed to an eligible city under this subdivision may be expended by the
city only for the construction, reconstruction, and maintenance of city roads within the city.
new text end

Sec. 3.

new text begin [162.083] LARGE CITIES ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Large cities account. new text end

new text begin A large cities account is created in the special
revenue fund. The account consists of money allotted, appropriated, or transferred to the
account. Money in the account is appropriated to the commissioner of transportation and
distributed as provided in subdivision 3 among all the cities that are eligible to receive
municipal state aid.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin Upon any apportionment to the small cities account as required
by section 161.081, subdivision 1, an amount equal to the apportioned amount must be
transferred from the general fund to the large cities account.
new text end

new text begin Subd. 3. new text end

new text begin Distribution formula. new text end

new text begin The commissioner must distribute the funds in the
account as follows:
new text end

new text begin (1) 50 percent of the money so that of that amount, each city receives the percentage
that its population bears to the total population of all cities that are eligible to receive
municipal state aid; and
new text end

new text begin (2) 50 percent of the money so that of that amount, 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.
new text end

Sec. 4.

new text begin [162.084] TRANSFERS TO SMALL CITIES ACCOUNT OR LARGE CITIES
ACCOUNT.
new text end

new text begin When a general fund transfer is made to the small cities account or the large cities
account, an equal general fund transfer must be made to the other account. If the legislature
makes a transfer to only the small cities account or to the large cities account, the
commissioner of management and budget must transfer half of the transfer amount into the
account that did not receive the general fund transfer. If general fund transfers are made to
both accounts, but the amounts to each account are not equal, the commissioner of
management and budget must transfer funds from one account to the other so that each
account receives the same amount of general fund money.
new text end