HF 3486

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 04/28/2010 03:24pm

A bill for an act
relating to transportation; appropriating federal transit funds for disbursement
by commissioner of transportation; modifying or adding provisions relating to
transit financial assistance; amending Minnesota Statutes 2008, sections 174.22,
by adding a subdivision; 174.23, subdivisions 1, 2; 174.24, subdivisions 2, 3b,
by adding a subdivision; 174.247; Minnesota Statutes 2009 Supplement, section
174.24, subdivisions 1a, 5.

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

Section 1.

Minnesota Statutes 2008, section 174.22, is amended by adding a
subdivision to read:

new text begin Subd. 14a. new text end

new text begin State sources of funds. new text end

new text begin "State sources of funds" means funding for the
public transit participation program appropriated from (1) the general fund, and (2) the
greater Minnesota transit account.
new text end

Sec. 2.

Minnesota Statutes 2008, section 174.23, subdivision 1, is amended to read:

Subdivision 1.

General.

new text begin (a) new text end The commissioner shall have all powers necessary and
convenient to carry out the provisions of sections 174.21 to 174.27 including the power to:

(1) review applications for financial assistance, execute contracts, and obligate
and expend program funds, upon conditions and limitations as the commissioner deems
necessary for purposes of program and project implementation, operation, and evaluation deleted text begin , deleted text end new text begin ; new text end

(2) accept and disburse federal funds available for the purposes of sections 174.21 to
174.27, and new text begin such funds are appropriated to the commissioner; and
new text end

(3) act upon request as the designated agent of any eligible person for the receipt and
disbursal of federal funds.

new text begin (b) new text end The commissioner shall perform the duties and exercise the powers under
sections 174.21 to 174.27 in coordination with and in furtherance of statewide,
regional, and local transportation plans and transportation development programs. deleted text begin The
commissioner shall set guidelines for financial assistance under the public transit subsidy
program. The commissioner shall present any proposed guidelines regarding public transit
financial assistance to a legislative committee composed of equal numbers appointed by
the house of representatives local and urban affairs and senate transportation committees.
The commissioner shall not implement any new guidelines regarding public transit
financial assistance, between the period January 1, 1981 to April 15, 1982, without the
prior approval of that committee.
deleted text end

Sec. 3.

Minnesota Statutes 2008, section 174.23, subdivision 2, is amended to read:

Subd. 2.

Financial assistance new text begin ; application, approval new text end .

new text begin (a) new text end The commissioner
shall seek out and select eligible recipients of financial assistance under sections 174.21
to 174.27.

new text begin (b) new text end The commissioner shall establish by rule the procedures and standards for review
and approval of applications for financial assistance submitted to the commissioner
pursuant to sections 174.21 to 174.27. Any applicant shall provide to the commissioner
any financial or other information required by the commissioner to carry out the
commissioner's duties. The commissioner may require local contributions from applicants
as a condition for receiving financial assistance.

new text begin (c) new text end Before the commissioner approves any grant, the application for the grant deleted text begin shall deleted text end new text begin
may new text end be reviewed deleted text begin and approved deleted text end by the appropriate regional development commission only
for consistency with regional transportation plans and development guides. If an applicant
proposes a project within the jurisdiction of a transit authority or commission or a transit
system assisted or operated by a city or county, the application shall also be reviewed
by that commission, authority, or political subdivision for consistency with its transit
programs, policies, and plans. deleted text begin Any regional development commission that has not adopted
a transportation plan may review but may not approve or disapprove of any application. deleted text end

Sec. 4.

Minnesota Statutes 2009 Supplement, section 174.24, subdivision 1a, is
amended to read:

Subd. 1a.

deleted text begin Transit service needs implementation deleted text end new text begin Greater Minnesota transit
investment new text end plan.

new text begin (a) new text end The commissioner shall develop a new text begin greater Minnesota new text end transit deleted text begin service
needs implementation deleted text end new text begin investment new text end plan that contains a goal of meeting at least 80 percent
of deleted text begin unmet deleted text end new text begin total new text end transit service needs in greater Minnesota by July 1, 2015, and meeting at
least 90 percent of deleted text begin unmet deleted text end new text begin total new text end transit service needs in greater Minnesota by July 1, 2025.

new text begin (b) new text end The plan must include, but is not limited to, the following:

new text begin (1) new text end an analysis of ridership and new text begin total new text end transit service needs throughout greater
Minnesota;

new text begin (2) new text end a calculation of deleted text begin unmet needs; an assessment of deleted text end the level and type of service
required to meet deleted text begin unmet deleted text end new text begin total transit service new text end needs new text begin , for the transit system classifications
as provided under subdivision 3b, paragraph (c), of urbanized area, small urban area,
rural area, and elderly and disabled service new text end ;

new text begin (3) new text end an analysis of costs and revenue options; deleted text begin and,
deleted text end

new text begin (4) new text end a plan to reduce deleted text begin unmet deleted text end new text begin total new text end transit service needs as specified in this subdivision new text begin ;
and
new text end

new text begin (5) identification of the operating and capital costs necessary to meet 100 percent of
the greater Minnesota transit targeted and projected bus service hours, as identified in the
greater Minnesota transit plan, for 2010, 2015, 2020, 2025, and 2030 new text end .

new text begin (c) new text end The plan must specifically address special transportation service ridership and
needs. The plan must also provide that recipients of operating assistance under this
section provide fixed route public transit service without charge for disabled veterans in
accordance with subdivision 7. deleted text begin The commissioner may amend the plan as necessary, and
may use all or part of the 2001 greater Minnesota public transportation plan created by the
Minnesota Department of Transportation.
deleted text end

Sec. 5.

Minnesota Statutes 2008, section 174.24, subdivision 2, is amended to read:

Subd. 2.

Eligibility; application.

Any legislatively established public transit
commission or authority, any county or statutory or home rule charter city providing
financial assistance to or operating public transit, any private operator of public transit, or
any combination thereof is eligible to receive financial assistance through the public transit
participation program. new text begin Except as provided in subdivision 2b for assistance provided from
federal funds, new text end eligible recipients must be located outside of the metropolitan area.

Sec. 6.

Minnesota Statutes 2008, section 174.24, is amended by adding a subdivision
to read:

new text begin Subd. 2b. new text end

new text begin Federal aid. new text end

new text begin (a) The commissioner may accept and disburse federal funds
received and appropriated under section 174.23, subdivision 1, as an additional source of
funds for implementing the public transit participation program established in this section.
This authority includes, but is not limited to:
new text end

new text begin (1) adopting administrative rules to establish financial assistance allocation priorities,
identify factors to consider in reviewing an applicant's management plan, evaluate a
request for financial assistance, and determine the amount of financial assistance to be
provided; and
new text end

new text begin (2) establishing project selection criteria under the United States Code, title 49,
section 5311, state management plan as approved by the Federal Transit Administration,
United States Department of Transportation.
new text end

new text begin (b) If the commissioner accepts and disburses federal funds as provided in paragraph
(a), the commissioner shall:
new text end

new text begin (1) maintain separate accounts for (i) state sources of funds, and (ii) federal sources
of funding; and
new text end

new text begin (2) ensure that all state sources of funds are only used for assistance to eligible
recipients as provided in subdivision 2.
new text end

Sec. 7.

Minnesota Statutes 2008, section 174.24, subdivision 3b, is amended to read:

Subd. 3b.

Operating assistance; recipient classifications.

(a) The commissioner
shall determine the total operating cost of any public transit system receiving or applying
for assistance in accordance with generally accepted accounting principles. To be eligible
for financial assistance, an applicant or recipient shall provide to the commissioner
all financial records and other information and shall permit any inspection reasonably
necessary to determine total operating cost and correspondingly the amount of assistance
that may be paid to the applicant or recipient. Where more than one county or municipality
contributes assistance to the operation of a public transit system, the commissioner shall
identify one as lead agency for the purpose of receiving money under this section.

(b) Prior to distributing operating assistance to eligible recipients for any contract
period, the commissioner shall place all recipients into one of the following classifications:
urbanized area service, small urban area service, rural area service, and elderly and
disabled service.

new text begin (c) new text end The commissioner shall distribute funds under this section so that the percentage
of total new text begin contracted new text end operating cost paid by any recipient from local sources will not exceed
the percentage for that recipient's classification, except as provided in deleted text begin an undue hardship
case deleted text end new text begin this subdivision new text end . The percentages must be:

new text begin (1) new text end for urbanized area service and small urban area service, 20 percent;

new text begin (2) new text end for rural area service, 15 percent; and

new text begin (3) new text end for elderly and disabled service, 15 percent.

new text begin Except as provided in a United States Department of Transportation program allowing
or requiring a lower percentage to be paid from local sources, new text end the remainder of the
new text begin recipient's new text end total new text begin contracted new text end operating cost will be paid from state new text begin sources of new text end funds less any
assistance received by the recipient from deleted text begin any federal source deleted text end new text begin the United States Department
of Transportation new text end .

new text begin (d) new text end For purposes of this subdivision, "local sources" means all local sources of funds
and includes all operating revenue, tax levies, and contributions from public funds, except
that the commissioner may exclude from the total assistance contract revenues derived
from operations the cost of which is excluded from the computation of total operating
cost. deleted text begin Total operating costs of the Duluth Transit Authority or a successor agency does
not include costs related to the Superior, Wisconsin service contract and the Independent
School District No. 709 service contract. deleted text end

deleted text begin (c) deleted text end new text begin (e) new text end If a recipient informs the commissioner in writing after the establishment of
these percentages but 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 commissioner may reduce the percentage to be paid from local
sources by the recipient and increase the percentage to be paid from local sources by one
or more other recipients inside or outside the classification. However, the commissioner
may not reduce or increase any recipient's percentage under this paragraph for more than
two years successively. If for any year the funds appropriated to the commissioner to carry
out the purposes of this section are insufficient to allow the commissioner to pay the state
share of total operating cost as provided in this paragraph, the commissioner shall reduce
the state share in each classification to the extent necessary.

Sec. 8.

Minnesota Statutes 2009 Supplement, section 174.24, subdivision 5, is
amended to read:

Subd. 5.

Method of payment, operating assistance.

Payments for operating
assistance under this section new text begin from state sources of funds new text end must be made in the following
manner:

(a) For payments made from the general fund:

(1) 50 percent of the total contract amount in or before the first month of operation;

(2) 40 percent of the total contract amount in or before the seventh month of
operation;

(3) 9 percent of the total contract amount in or before the 12th month of operation;
and

(4) 1 percent of the total contract amount after the final audit.

(b) For payments made from the greater Minnesota transit account:

(1) 50 percent of the total contract amount in or before the seventh month of
operation; and

(2) 50 percent of the total contract amount in or before the 11th month of operation.

Sec. 9.

Minnesota Statutes 2008, section 174.247, is amended to read:

174.247 ANNUAL TRANSIT REPORT.

(a) By February 15 annually, the commissioner shall submit a report to the legislature
on transit services outside the metropolitan area. The Metropolitan Council and any
public transit system receiving assistance under section 174.24 shall provide assistance
in creating the report, as requested by the commissioner.

(b) The report must include, at a minimum, the following:

(1) a descriptive overview of public transit in Minnesota;

(2) a descriptive summary of funding sources and assistance programs;

(3) a summary of each public transit system receiving assistance under section
174.24;

(4) data that identifies use of volunteers in providing transit service;

(5) financial data that identifies deleted text begin operating and capital costs, and funding sources, deleted text end
for each public transit system and for each transit system classification under section
174.24, subdivision 3b new text begin :
new text end

new text begin (i) the operating and capital costs;
new text end

new text begin (ii) each of the funding sources used to provide financial assistance new text end ; and

new text begin (iii) for federal funds, the amount from each specific federal program under which
funding is provided;
new text end

(6) new text begin a summary of the differences in program implementation requirements and aid
recipient eligibility between federal aid and state sources of funds;
new text end

new text begin (7) in each odd-numbered year, an analysis of public transit system needs and
operating expenditures on an annual basis, which must include a methodology for
identifying monetary needs, and calculations of:
new text end

new text begin (i) the total monetary needs for all public transit systems, for the year of the report
and the ensuing five years;
new text end

new text begin (ii) the total expenditures from local sources for each transit system classification;
new text end

new text begin (iii) the comprehensive transit assistance percentage for each transit system
classification, which equals (A) the expenditures identified under clause (7), item (ii), for
a transit system classification, divided by (B) the amounts identified under subitem (A),
plus the sum of state sources of funds plus federal funds provided to all transit systems
in that classification; and
new text end

new text begin (iv) new text end deleted text begin in each odd-numbered year, beginning in 2009, a calculation of the amounts deleted text end new text begin the
amount new text end of surplus or insufficient funds available for deleted text begin (i) paying the state share of transit
operating costs under section 174.24, subdivision 3b, and (ii) deleted text end paying capital and operating
costs to fully implement the deleted text begin transit service needs implementation deleted text end new text begin greater Minnesota transit
investment new text end plan under section 174.24, subdivision 1a.