HF 1353

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to transportation; increasing motor fuel tax
rates and providing for annual adjustments; expanding
authority of counties to levy wheelage taxes;
increasing base tax on passenger automobiles;
authorizing counties to impose sales tax for
transportation purposes; authorizing cities and
counties to impose transportation impact fees;
authorizing issuance of state trunk highway bonds for
trunk highway improvements; authorizing issuance of
state transportation bonds for construction and
reconstruction of key local bridges; authorizing
issuance of the county state-aid highway fund;
exempting certain criteria from the Administrative
Procedure Act; appropriating money; amending Minnesota
Statutes 2004, sections 162.06, subdivision 1; 162.07,
subdivision 1; 163.051; 168.013, subdivision 1a;
174.52, subdivision 5; 296A.07, subdivision 3;
296A.08, subdivision 2; proposing coding for new law
in Minnesota Statutes, chapters 296A; 297A; 426.

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

ARTICLE 1

MOTOR FUEL TAXES

Section 1.

Minnesota Statutes 2004, section 296A.07,
subdivision 3, is amended to read:

Subd. 3.

Rate of tax.

The gasoline excise tax is imposed
at the following rates:

(1) E85 is taxed at the rate of deleted text begin 14.2 deleted text end new text begin 17.75 new text end cents per gallon
new text begin until May 31, 2006, and 21.3 cents per gallon thereafter new text end ;

(2) M85 is taxed at the rate of deleted text begin 11.4 deleted text end new text begin 14.25 new text end cents per gallon
new text begin until May 31, 2006, and 17.1 cents per gallon thereafter new text end ; and

(3) all other gasoline is taxed at the rate of deleted text begin 20 deleted text end new text begin 25 new text end cents
per gallon new text begin until May 31, 2006, and 30 cents per gallon
thereafter new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2005.
new text end

Sec. 2.

Minnesota Statutes 2004, section 296A.08,
subdivision 2, is amended to read:

Subd. 2.

Rate of tax.

The special fuel excise tax is
imposed at the following rates:

(a) Liquefied petroleum gas or propane is taxed at the rate
of deleted text begin 15 deleted text end new text begin 18.75 new text end cents per gallon new text begin until May 31, 2006, and 22.5 cents
per gallon thereafter new text end .

(b) Liquefied natural gas is taxed at the rate of deleted text begin 12 deleted text end new text begin 15
new text end cents per gallon new text begin until May 31, 2006, and 18 cents per gallon
thereafter new text end .

(c) Compressed natural gas is taxed at the deleted text begin rate of $1.739
per thousand cubic feet; or 20 cents per gasoline equivalent, as
defined by the National Conference on Weights and Measures,
which is 5.66 pounds of natural gas deleted text end new text begin following rates: $2.174 per
thousand cubic feet, or 25 cents per gasoline equivalent, until
May 31, 2006, and $2.609 per thousand cubic feet, or 30 cents
per gasoline equivalent thereafter. For purposes of this
paragraph "gasoline equivalent," as defined by the National
Conference on Weights and Measures, is 5.66 pounds of natural
gas new text end .

(d) All other special fuel is taxed at the same rate as the
gasoline excise tax as specified in section 296A.07, subdivision
2. The tax is payable in the form and manner prescribed by the
commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2005.
new text end

Sec. 3.

new text begin [296A.081] ANNUAL ADJUSTMENT.
new text end

new text begin (a) On April 1, 2007, and each April 1 thereafter, the
commissioner of revenue shall recompute and publish the rate of
each fuel tax provided for in section 296A.07, subdivision 3,
and 296A.08, subdivision 2. The new rate for each such tax must
be calculated by multiplying the rate in effect at the time of
the calculation by an amount obtained under paragraph (b). The
new rate must be rounded to the nearest 0.1 cent and is
effective on June 1 of each year.
new text end

new text begin (b) Divide the annual average United States Consumer Price
Index for all urban consumers, United States city average, as
determined by the United States Department of Labor for the
previous year by that annual average for the year before the
previous year.
new text end

new text begin (c) By a majority vote, the legislature may suspend the
annual adjustment for any particular year or years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective April 1, 2007.
new text end

ARTICLE 2

MOTOR VEHICLE TAXES

Section 1.

Minnesota Statutes 2004, section 163.051, is
amended to read:

163.051 deleted text begin METROPOLITAN deleted text end COUNTY WHEELAGE TAX.

Subdivision 1.

Tax authorized.

The board of
commissioners of each deleted text begin metropolitan deleted text end county is authorized to levy
new text begin by resolution new text end a wheelage tax of deleted text begin $5 for the year 1972 and each
subsequent year thereafter by resolution deleted text end new text begin up to $20 new text end on each motor
vehicle, except motorcycles as defined in section 169.01,
subdivision 4, deleted text begin which deleted text end new text begin that new text end is kept in deleted text begin such deleted text end new text begin the new text end county when not in
operation and deleted text begin which deleted text end new text begin that new text end is subject to annual registration and
taxation under chapter 168. The board may provide by resolution
for collection of the wheelage tax by county officials or it may
request that the tax be collected by the state registrar of
motor vehicles, and the state registrar of motor vehicles shall
collect deleted text begin such deleted text end new text begin the new text end tax on behalf of the county if requested, as
provided in subdivision 2.

Subd. 2.

Collection by registrar of motor vehicles.

The
wheelage tax levied by deleted text begin any metropolitan deleted text end new text begin a new text end county, if made
collectible by the state registrar of motor vehicles, deleted text begin shall deleted text end new text begin must
new text end be certified by the county auditor to the registrar not later
than August 1 in the year before the calendar year or years for
which the tax is levied, and the registrar shall collect deleted text begin such
deleted text end new text begin the new text end tax with the motor vehicle taxes on the affected vehicles
for such year or years. Every owner and every operator of deleted text begin such
deleted text end a motor vehicle new text begin subject to the wheelage tax new text end shall furnish to the
registrar all information requested by the registrar. deleted text begin No deleted text end new text begin A
new text end state motor vehicle tax on any such motor vehicle for any such
year deleted text begin shall deleted text end new text begin may not new text end be received or deemed paid unless the
applicable wheelage tax is paid therewith. deleted text begin The proceeds of the
wheelage tax levied by any metropolitan county, less any amount
retained by the registrar to pay costs of collection of the
wheelage tax, shall be paid to the commissioner of finance and
deposited in the state treasury to the credit of the county
wheelage tax fund of each metropolitan county.
deleted text end

Subd. 2a.

Tax proceeds deposited; costs of collection;
appropriation.

Notwithstanding deleted text begin the provisions of deleted text end any other law,
the state registrar of motor vehicles shall deposit the proceeds
of the wheelage tax imposed by subdivision 2, to the credit of
the deleted text begin county wheelage tax deleted text end new text begin road and bridge new text end fund of each
deleted text begin metropolitan deleted text end county new text begin levying the tax new text end . The amount necessary to
pay the costs of deleted text begin collection of said deleted text end new text begin collecting the new text end tax is
appropriated new text begin to the state registrar of motor vehicles new text end from the
deleted text begin county wheelage tax deleted text end new text begin road and bridge new text end fund of each deleted text begin metropolitan
deleted text end county deleted text begin to the state registrar of motor vehicles deleted text end new text begin levying the tax new text end .

deleted text begin Subd. 3. deleted text end

deleted text begin Distribution to metropolitan county;
appropriation. deleted text end

deleted text begin On or before April 1 in 1972 and each subsequent
year, the commissioner of finance shall issue a warrant in favor
of the treasurer of each metropolitan county for which the
registrar has collected a wheelage tax in the amount of such tax
then on hand in the county wheelage tax fund. There is hereby
appropriated from the county wheelage tax fund each year, to
each metropolitan county entitled to payments authorized by this
section, sufficient moneys to make such payments.
deleted text end

deleted text begin Subd. 4. deleted text end

deleted text begin Use of tax. deleted text end

deleted text begin The treasurer of each metropolitan
county receiving moneys under subdivision 3 shall deposit such
moneys in the county road and bridge fund. The moneys shall be
used for purposes authorized by law which are highway purposes
within the meaning of the Minnesota Constitution, article 14.
deleted text end

deleted text begin Subd. 5. deleted text end

deleted text begin Effect on road and bridge levy. deleted text end

deleted text begin The county
auditor of each metropolitan county shall reduce the amount of
the property taxes levied pursuant to law in 1973 for collection
in 1974, by the board of commissioners of such county for the
county road and bridge fund, by the following amount: Anoka
County, $341,750; Carver County, $86,725; Dakota County,
$386,165; Hennepin County, $2,728,425; Ramsey County,
$1,276,815; Scott County, $104,805; Washington County, $227,220,
and shall spread only the balance thereof on the tax rolls for
collection in 1972. The county auditor shall also reduce the
amount of such taxes levied pursuant to law in 1972 and any
subsequent year, for collection in the respective ensuing years,
by the amount of wheelage taxes received by the county in the 12
months immediately preceding such levy.
deleted text end

deleted text begin Subd. 6. deleted text end

deleted text begin Metropolitan county defined. deleted text end

deleted text begin "Metropolitan
county" means any of the counties of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington.
deleted text end

Subd. 7.

Offenses; penalties; application of other laws.

Any owner or operator of a motor vehicle who deleted text begin shall
deleted text end willfully deleted text begin give deleted text end new text begin gives new text end any false information relative to the tax
deleted text begin herein deleted text end authorized new text begin under this section new text end to the registrar of motor
vehicles or any deleted text begin metropolitan deleted text end county, or who deleted text begin shall deleted text end willfully deleted text begin fail
or refuse deleted text end new text begin fails or refuses new text end to furnish any such
information, deleted text begin shall be deleted text end new text begin is new text end guilty of a misdemeanor. Except as
otherwise herein provided, the collection and payment of a
wheelage tax and all matters relating thereto deleted text begin shall be deleted text end new text begin is
new text end subject to all provisions of law relating to collection and
payment of motor vehicle taxes so far as applicable.

Sec. 2.

Minnesota Statutes 2004, section 168.013,
subdivision 1a, is amended to read:

Subd. 1a.

Passenger automobile; hearse.

(a) On passenger
automobiles as defined in section 168.011, subdivision 7, and
hearses, except as otherwise provided, the tax shall be deleted text begin $10 deleted text end new text begin $35
new text end plus an additional tax equal to 1.25 percent of the base value.

(b) Subject to the classification provisions herein, "base
value" means the manufacturer's suggested retail price of the
vehicle including destination charge using list price
information published by the manufacturer or determined by the
registrar if no suggested retail price exists, and shall not
include the cost of each accessory or item of optional equipment
separately added to the vehicle and the suggested retail price.

(c) If the manufacturer's list price information contains a
single vehicle identification number followed by various
descriptions and suggested retail prices, the registrar shall
select from those listings only the lowest price for determining
base value.

(d) If unable to determine the base value because the
vehicle is specially constructed, or for any other reason, the
registrar may establish such value upon the cost price to the
purchaser or owner as evidenced by a certificate of cost but not
including Minnesota sales or use tax or any local sales or other
local tax.

(e) The registrar shall classify every vehicle in its
proper base value class as follows:

FROM TO
$ 0 $199.99
200 399.99

and thereafter a series of classes successively set in brackets
having a spread of $200 consisting of such number of classes as
will permit classification of all vehicles.

(f) The base value for purposes of this section shall be
the middle point between the extremes of its class.

(g) The registrar shall establish the base value, when new,
of every passenger automobile and hearse registered prior to the
effective date of Extra Session Laws 1971, chapter 31, using
list price information published by the manufacturer or any
nationally recognized firm or association compiling such data
for the automotive industry. If unable to ascertain the base
value of any registered vehicle in the foregoing manner, the
registrar may use any other available source or method. The
registrar shall calculate tax using base value information
available to dealers and deputy registrars at the time the
application for registration is submitted. The tax on all
previously registered vehicles shall be computed upon the base
value thus determined taking into account the depreciation
provisions of paragraph (h).

(h) The annual additional tax computed upon the base value
as provided herein, during the first and second years of vehicle
life shall be computed upon 100 percent of the base value; for
the third and fourth years, 90 percent of such value; for the
fifth and sixth years, 75 percent of such value; for the seventh
year, 60 percent of such value; for the eighth year, 40 percent
of such value; for the ninth year, 30 percent of such value; for
the tenth year, ten percent of such value; for the 11th and each
succeeding year, the sum of $25.

In no event shall the annual additional tax be less than $25.
The total tax under this subdivision shall not exceed $189 for
the first renewal period and shall not exceed $99 for subsequent
renewal periods. The total tax under this subdivision on any
vehicle filing its initial registration in Minnesota in the
second year of vehicle life shall not exceed deleted text begin $189 deleted text end new text begin $214 new text end and shall
not exceed deleted text begin $99 deleted text end new text begin $124 new text end for subsequent renewal periods. The total
tax under this subdivision on any vehicle filing its initial
registration in Minnesota in the third or subsequent year of
vehicle life shall not exceed deleted text begin $99 deleted text end new text begin $124 new text end and shall not exceed
deleted text begin $99 deleted text end new text begin $124 new text end in any subsequent renewal period.

(i) As used in this subdivision and section 168.017, the
following terms have the meanings given: "initial registration"
means the 12 consecutive months calendar period from the day of
first registration of a vehicle in Minnesota; and "renewal
periods" means the 12 consecutive calendar months periods
following the initial registration period.

ARTICLE 3

SALES TAXES FOR TRANSPORTATION

Section 1.

new text begin [297A.996] LOCAL SALES TAXES FOR
TRANSPORTATION.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin A county may by resolution
impose a general sales tax on taxable sales within the county in
addition to the taxes imposed under sections 297A.62 to 297A.64
and any other local sales taxes imposed in the county. Revenue
from taxes authorized under this section may only be spent in
accordance with subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Tax base. new text end

new text begin The tax applies to sales taxable
under this chapter that occur within the county. Taxable
services are subject to a county's sales tax if they are
performed either:
new text end

new text begin (1) within the county; or
new text end

new text begin (2) partly within and partly without the county and more of
the service is performed within the county, based on the cost of
performance.
new text end

new text begin Subd. 3. new text end

new text begin Use tax. new text end

new text begin A compensating use tax applies, at the
same rate as the sales tax, on the use, storage, distribution,
or consumption of tangible personal property or taxable services.
new text end

new text begin Subd. 4. new text end

new text begin Rate of tax. new text end

new text begin (a) The county board shall by
resolution set the rate of the tax, which except as provided in
paragraph (b) may not exceed one-half of one percent.
new text end

new text begin (b) In lieu of imposing the tax authorized under this
section at the rate provided in paragraph (a) on motor vehicles
purchased by a retail consumer from any person engaged within
the county in the business of selling motor vehicles at retail,
the county board shall set the tax rate at not more than $20 for
each such taxable sale.
new text end

new text begin Subd. 5. new text end

new text begin Taxable price. new text end

new text begin For purposes of the tax
authorized under this section the "taxable price" of a retail
sale does not include the state sales tax or any sales tax
imposed by a city within the county on that sale.
new text end

new text begin Subd. 6. new text end

new text begin Exemptions. new text end

new text begin (a) All goods or services that are
otherwise exempt from taxation under this chapter are exempt
from a tax authorized under this section.
new text end

new text begin (b) The gross receipts from the sale of tangible personal
property that meets the requirement of section 297A.68,
subdivision 15, are exempt, except the qualification test
applies based on the boundaries of the county instead of the
state of Minnesota.
new text end

new text begin (c) All mobile transportation equipment, and parts and
accessories attached to or to be attached to the equipment, are
exempt if purchased by a holder of a motor carrier direct pay
permit under section 297A.90.
new text end

new text begin Subd. 7. new text end

new text begin Application of other laws. new text end

new text begin (a) Section 297A.99,
subdivisions 7, 9, 10, and 11, apply to taxes authorized under
this section.
new text end

new text begin (b) The commissioner has the same powers to assess and
collect the taxes as are given the commissioner in chapters 270,
289A, and 297A to assess and collect sales and use taxes.
new text end

new text begin Subd. 8. new text end

new text begin Joint powers agreements. new text end

new text begin Two or more counties
may enter into a joint powers agreement and establish a joint
powers board under section 471.59 to exercise the powers granted
to individual counties under subdivision 1.
new text end

new text begin Subd. 9. new text end

new text begin Use of revenue. new text end

new text begin A county receiving revenue from
a tax imposed under subdivision 1 may use the revenue only for:
new text end

new text begin (1) design, engineering, acquisition of real property,
construction, reconstruction, or maintenance of county highways
and county state-aid highways;
new text end

new text begin (2) public transit capital improvements; and
new text end

new text begin (3) operating assistance to public transit systems.
new text end

ARTICLE 4

TRANSPORTATION IMPACT FEES

Section 1.

new text begin [426.21] TRANSPORTATION IMPACT FEES.
new text end

new text begin Subdivision 1. new text end

new text begin Fees may be imposed. new text end

new text begin A city or county may
by ordinance impose a transportation impact fee on each building
permit it issues.
new text end

new text begin Subd. 2. new text end

new text begin Adoption of plan. new text end

new text begin Before imposing a
transportation impact fee, a city or county must adopt a safety
and intersection improvement plan that identifies and estimates
the cost of:
new text end

new text begin (1) each intersection that the city or county intends to
construct, reconstruct, or improve within the five-year period
covered by the plan, including intersections of a county highway
or city street with a trunk highway where a share of the total
cost will be paid by the city or county; and
new text end

new text begin (2) each significant highway safety hazard that the city or
county intends to eliminate or ameliorate within the five-year
period covered by the plan.
new text end

new text begin The plan must provide for a revision of the plan at least
once every five years.
new text end

new text begin Subd. 3. new text end

new text begin Use of fees. new text end

new text begin A city or county imposing a
transportation impact fee may spend the revenue from the fee
only for projects identified in its safety and intersection
improvement plan.
new text end

new text begin Subd. 4. new text end

new text begin Calculation of fee. new text end

new text begin A city or county imposing a
transportation impact fee under this section must provide by
ordinance for:
new text end

new text begin (1) a reasonable classification of all property in the city
according to trips generated by the property on the streets and
highways of the city or county imposing the fee;
new text end

new text begin (2) a determination of the average daily number of trips
generated by a single-family dwelling in the city or county; and
new text end

new text begin (3) a trip generation rate for each class of property based
on a multiple of the rate for a single-family dwelling. The
transportation impact fee must be based on the trip generation
rate assigned to each class of property. In determining a
transportation impact fee for any property a city or county may
take into consideration the type and loading of the traffic
generated by the property.
new text end

new text begin Subd. 5. new text end

new text begin Exemptions. new text end

new text begin Building permits for the following
projects are exempt from transportation impact fees:
new text end

new text begin (1) alterations or expansions of an existing dwelling unit
where no additional units are created and the use is not
changed;
new text end

new text begin (2) construction of accessory buildings or structures that
will not increase the number of trips generated by the property;
new text end

new text begin (3) replacement on the same land of a destroyed or
partially destroyed building or structure with a new building or
structure of substantially the same size and use; and
new text end

new text begin (4) any new construction that does not generate trips on a
street or highway identified in the city's or county's safety
and intersection improvement plan.
new text end

new text begin Subd. 6. new text end

new text begin Collection. new text end

new text begin A city or county may collect a
transportation impact fee at the time it issues a building
permit, or may provide that the fee be paid over a period not to
exceed ten years and at the same time and in the same manner as
taxes on the real property for which the building permit is
issued. Payment of a fee that is made at a time other than the
time the building permit is issued is subject to the same
interest and penalties as city or county taxes and special
assessments on real property.
new text end

new text begin Subd. 7. new text end

new text begin Notice; hearing. new text end

new text begin An ordinance under this
section must provide that before imposing a transportation
impact fee on any building permit the city or county must give
the person to whom the permit is issued a reasonable notice and
opportunity for a public hearing at which the person may present
evidence relating to the determination of the fee.
new text end

ARTICLE 5

APPROPRIATIONS AND BOND AUTHORIZATIONS

Section 1. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation; trunk highway
fund. new text end

new text begin $100,000,000 is appropriated from the bond proceeds
account in the trunk highway fund to the commissioner of
transportation for improvements to the state trunk highway
system. Of this appropriation:
new text end

new text begin (1) $50,000,000 is for improvements to the interregional
corridor system as identified by the commissioner where the
improvements are physically located entirely or primarily
outside the seven-county metropolitan area; and
new text end

new text begin (2) $50,000,000 is for the elimination of traffic
bottlenecks on arterial highways located entirely within the
seven-county metropolitan area.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation; state transportation
fund. new text end

new text begin $50,000,000 is appropriated from the state transportation
fund to the commissioner of transportation for grants under
Minnesota Statutes, section 174.50, to match federal money and
to replace or rehabilitate local deficient bridges. Political
subdivisions may use grants made under this subdivision to
construct or reconstruct bridges, including:
new text end

new text begin (1) matching federal aid grants to construct or reconstruct
key bridges;
new text end

new text begin (2) paying the costs of preliminary engineering and
environmental studies authorized under Minnesota Statutes,
section 174.50, subdivision 6a;
new text end

new text begin (3) paying the costs to abandon an existing bridge that is
deficient and in need of replacement, but where no replacement
will be made; and
new text end

new text begin (4) paying the costs to construct a road or street to
facilitate the abandonment of an existing bridge determined by
the commissioner to be deficient, if the commissioner determines
that construction of the road or street is more economical than
replacing the existing bridge.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation; bond proceeds fund. new text end

new text begin $50,000,000
is appropriated from the bond proceeds fund to the commissioner
of transportation for deposit in the local road improvement
fund. The commissioner shall credit the amount so appropriated
to the local account for routes of regional significance.
new text end

Sec. 2. new text begin BOND SALE AUTHORIZATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Trunk highway bonds. new text end

new text begin To provide the money
appropriated in section 1, subdivision 1, from the bond proceeds
account in the trunk highway fund, the commissioner of finance
shall sell and issue bonds of the state in an amount up to
$100,000,000 in the manner, upon the terms, and with the effect
prescribed by Minnesota Statutes, sections 167.50 to 167.52, and
by the Minnesota Constitution, article XIV, section 11, at the
times and in the amounts requested by the commissioner of
transportation. The proceeds of the bonds, except accrued
interest and any premium received on the sale of the bonds, must
be credited to the bond proceeds account in the trunk highway
fund.
new text end

new text begin Subd. 2. new text end

new text begin Transportation bonds. new text end

new text begin To provide the money
appropriated from the state transportation fund under section 1,
subdivision 2, the commissioner of finance shall, on request of
the commissioner of transportation, issue and sell Minnesota
state transportation bonds for the purposes provided in
Minnesota Statutes, section 174.51, subdivision 1, in the
aggregate principal amount of $50,000,000 in the manner and on
the conditions prescribed in Minnesota Statutes, section 174.51,
and in the Minnesota Constitution, article XI. The proceeds of
the bonds must be deposited in the Minnesota state
transportation fund for expenditure in accordance with section
1, subdivision 2, and with Minnesota Statutes, section 174.50.
new text end

new text begin Subd. 3. new text end

new text begin State bonds. new text end

new text begin To provide the money appropriated
from the bond proceeds fund under section 1, subdivision 3, the
commissioner of finance shall sell and issue bonds of the state
in an amount up to $50,000,000 in the manner, on the terms, and
with the effect prescribed by Minnesota Statutes, sections
16A.631 to 16A.675, and by the Minnesota Constitution, article
XI, sections 4 to 7.
new text end

ARTICLE 6

LOCAL ROADS

Section 1.

Minnesota Statutes 2004, section 162.06,
subdivision 1, is amended to read:

Subdivision 1.

Estimate.

By December 15 of each year the
commissioner shall estimate the deleted text begin amount deleted text end new text begin amounts new text end of money that
will be available to the county state-aid highway fund during
that fiscal year new text begin :
new text end

new text begin (1) from the apportionment sum, consisting of the amounts
from (i) motor vehicle registration tax revenue and (ii) motor
fuel tax revenue from tax rates in effect on May 31, 2005; and
new text end

new text begin (2) from the excess sum, consisting of the amount from fuel
tax rates in excess of the rates in effect on May 31, 2005 new text end .

The deleted text begin amount deleted text end new text begin amounts new text end available must be based on actual receipts
from July 1 through November 30, the unallocated fund balance,
and the projected receipts for the remainder of the fiscal
year. The total available, except for deductions as provided
herein, shall be apportioned by the commissioner to the counties
as hereinafter provided.

Sec. 2.

Minnesota Statutes 2004, section 162.07,
subdivision 1, is amended to read:

Subdivision 1.

deleted text begin formula deleted text end new text begin formulas new text end .

new text begin (a) new text end After deducting for
administrative costs and for the disaster account and research
account and state park roads as heretofore provided, the
remainder of the total sum provided for in section 162.06,
subdivision 1, shall be identified as the apportionment sum and
new text begin the excess sum.
new text end

new text begin (b) The apportionment sum new text end shall be apportioned by the
commissioner to the several counties on the basis of the needs
of the counties as determined in accordance with the following
formula:

deleted text begin (a) deleted text end new text begin (1) new text end An amount equal to ten percent of the apportionment
sum shall be apportioned equally among the 87 counties.

deleted text begin (b) deleted text end new text begin (2) new text end An amount equal to ten percent of the apportionment
sum shall be apportioned among the several counties so that each
county shall receive of such amount the percentage that its
motor vehicle registration for the calendar year preceding the
one last past, determined by residence of registrants, bears to
the total statewide motor vehicle registration.

deleted text begin (c) deleted text end new text begin (3) new text end An amount equal to 30 percent of the apportionment
sum shall be apportioned among the several counties so that each
county shall receive of such amount the percentage that its
total lane-miles of approved county state-aid highways bears to
the total lane-miles of approved statewide county state-aid
highways. In 1997 and subsequent years no county may receive,
as a result of an apportionment under this clause based on
lane-miles rather than miles of approved county state-aid
highways, an apportionment that is less than its apportionment
in 1996.

deleted text begin (d) deleted text end new text begin (3) new text end An amount equal to 50 percent of the apportionment
sum shall be apportioned among the several counties so that each
county shall receive of such amount the percentage that its
money needs bears to the sum of the money needs of all of the
individual counties; provided, that the percentage of such
amount that each county is to receive shall be adjusted so that
each county shall receive in 1958 a total apportionment at least
ten percent greater than its total 1956 apportionments from the
state road and bridge fund; and provided further that those
counties whose money needs are thus adjusted shall never receive
a percentage of the apportionment sum less than the percentage
that such county received in 1958.

new text begin (c) The excess sum shall be apportioned by the commissioner
to the counties as determined in accordance with the following
formula:
new text end

new text begin (1) An amount equal to 40 percent of the excess sum shall
be apportioned among the several counties so that each county
shall receive of the amount the percentage that its motor
vehicle registration for the calendar year preceding the one
last past, determined by residence of registrants, bears to the
total statewide motor vehicle registration.
new text end

new text begin (2) An amount equal to 60 percent of the excess sum shall
be apportioned among the several counties so that each county
shall receive of such amount the percentage that its money needs
bears to the sum of the money needs of all counties.
new text end

Sec. 3.

Minnesota Statutes 2004, section 174.52,
subdivision 5, is amended to read:

Subd. 5.

Grant procedures and criteria.

The commissioner
shall establish procedures for statutory or home rule charter
cities, towns, and counties to apply for grants or loans from
the fund and criteria to be used to select projects for funding.
The commissioner shall establish these procedures and criteria
in consultation with representatives appointed by the
Association of Minnesota Counties, League of Minnesota Cities,
and Minnesota Township Officers Association. The criteria for
determining project priority and the amount of a grant or loan
must be based upon consideration of:

(1) the availability of other state, federal, and local
funds;

(2) the regional significance of the route;

(3) effectiveness of the proposed project in eliminating a
transportation system deficiency;

(4) the number of persons who will be positively impacted
by the project;

(5) the project's contribution to other local, regional, or
state economic development or redevelopment efforts; and

(6) ability of the local unit of government to adequately
provide for the safe operation and maintenance of the facility
upon project completion.

new text begin Adoption of procedures and criteria under this subdivision is
not subject to the Administrative Procedure Act.
new text end