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HF 1740

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 04/19/2013 11:50am

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

Bill Text Versions

Engrossments
Introduction Posted on 04/08/2013
1st Engrossment Posted on 04/19/2013

Current Version - 1st Engrossment

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A bill for an act
relating to transportation; taxes; amending a joint powers board; imposing
sales tax; providing for allocation of funds; amending Minnesota Statutes
2012, sections 297A.992; 473.39, subdivisions 1p, 1r, by adding a subdivision;
proposing coding for new law in Minnesota Statutes, chapter 297A; repealing
Minnesota Statutes 2012, section 473.39, subdivision 1q.

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

Section 1.

Minnesota Statutes 2012, section 297A.992, is amended to read:


297A.992 METROPOLITAN deleted text begin TRANSPORTATIONdeleted text end AREAnew text begin TRANSITnew text end SALES
TAXnew text begin ; TAX, JOINT POWERS BOARDnew text end .

Subdivision 1.

Definitions.

For purposes of this section, the following terms have
the meanings given them:

(1) "metropolitan deleted text begin transportationdeleted text end area" means the counties deleted text begin participating in the joint
powers agreement under subdivision 3;
deleted text end

deleted text begin (2) "eligible county" means the countydeleted text end of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, or Washington;

deleted text begin (3)deleted text end new text begin (2)new text end "committee" means the Grant Evaluation and Ranking System (GEARS)
Committee;

deleted text begin (4)deleted text end new text begin (3)new text end "minimum guarantee county" means any metropolitan county or eligible
county that is participating in the joint powers agreement under subdivision 3, whose
proportion of the annual sales tax revenue under this section collected within that county
is less than or equal to deleted text begin threedeleted text end new text begin fournew text end percent;

new text begin (4) "net transit sales tax proceeds" means the total proceeds from the sales and use
taxes imposed under this section, less the deductions identified under subdivision 8;
new text end and

(5) "population" means the population, as defined in section 477A.011, subdivision
3
, estimated or established by July 15 of the year prior to the calendar year in which
the representatives will serve on the Grant Evaluation and Ranking System Committee
established under subdivision 5.

Subd. 2.

Authorization; rates.

(a) Notwithstanding section 297A.99, subdivisions
1, 2, and 3, or 477A.016, or any other law, the board of a county participating in a joint
powers agreement as specified in this section shall impose by resolution (1) a transportation
sales and use tax at a rate of one-quarter of one percent on retail sales and uses taxable under
this chapter, and (2) an excise tax of $20 per motor vehicle, as defined in section 297B.01,
subdivision 11
, purchased or acquired from any person engaged in the business of selling
motor vehicles at retail, occurring within the jurisdiction of the taxing authority. The taxes
authorized are to fund transportation improvements as specified in this section, including
debt service on obligations issued to finance such improvements pursuant to subdivision 7.

(b) The tax imposed under this section is not included in determining if the total tax
on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
12, section 87, or in determining a tax that may be imposed under any other limitations.

new text begin Subd. 2a. new text end

new text begin Additional tax; rates. new text end

new text begin A local sales tax is imposed in the metropolitan
counties, as defined in section 473.121, subdivision 4. In order to maintain the same rate
across the region, the tax is imposed in each county as a sales and use tax on retail sales
and uses taxable under this chapter, at a rate equal to........
new text end

Subd. 3.

Joint powers agreement.

Before imposing the taxes authorized in
subdivision 2, an eligible county must declare by resolution of its county board to be part
of the metropolitan transportation area and must enter into a joint powers agreement. The
joint powers agreement:

(1) must form a joint powers board, as specified in subdivision 4;

(2) must provide a process that allows any eligible county, by resolution of its county
board, to join the joint powers board and impose the taxes authorized in subdivision 2;

(3) may provide for withdrawal of a participating county before final termination of
the agreement; and

(4) may provide for a weighted voting system for joint powers board decisions.

Subd. 4.

Joint powers board.

(a) The joint powers board must consist of one
or more commissioners of each county deleted text begin that isdeleted text end in the metropolitan deleted text begin transportationdeleted text end area,
appointed by its county board, and the chair of the Metropolitan Council, who must have
voting rights, subject to subdivision 3, clause (4). The joint powers board has the powers
and duties provided in this section and section 471.59.

(b) The joint powers board may utilize no more than deleted text begin three-fourthsdeleted text end new text begin one-halfnew text end of one
percent of the new text begin net transit sales tax new text end proceeds deleted text begin of the taxes imposed under this sectiondeleted text end for
ordinary administrative expenses incurred in carrying out the provisions of this section.
Any additional administrative expenses must be paid by the participating counties.

(c) The joint powers board may establish a technical advisory group that is separate
from the GEARS Committee. The group must consist of representatives of cities, counties,
or public agencies, including the Metropolitan Council. The technical advisory group
must be used solely for technical consultation purposes.

new text begin (d) The chair of the joint powers board must be a county commissioner who is
elected by the board.
new text end

Subd. 5.

Grant deleted text begin application anddeleted text end awards; deleted text begin Grant Evaluation and Ranking System
(GEARS) Committee
deleted text end new text begin process, general requirementsnew text end .

(a) The joint powers board shall
establish a grant application process and identify the amount of available funding for grant
awards. Grant applications must be submitted in a form prescribed by the joint powers
board. An applicant must provide, in addition to all other information required by the joint
powers board, the estimated cost of the project, the amount of the grant sought, possible
sources of funding in addition to the grant sought, and identification of any federal funds
that will be utilized if the grant is awarded. A grant application seeking transit capital
funding must identify the source of money necessary to operate the transit improvement.

(b) The joint powers board shall establish a timeline and procedures for the award of
grants, and may award grants only to the state and political subdivisions. The board shall
define objective criteria for the award of grants, which must include, but not be limited to,
consistency with the most recent version of the transportation policy plan adopted by the
Metropolitan Council under section 473.146. The joint powers board shall maximize the
availability and use of federal funds in projects funded under this section.

new text begin (c) Grants must be funded by the proceeds of the taxes imposed under this section,
bonds, notes, or other obligations issued by the joint powers board under subdivision 7.
new text end

new text begin (d) For grants awarded in each calendar year for 2014 through 2018, the board
shall award grants to each minimum guarantee county that is a member of the board, in
an amount that is no less than:
new text end

new text begin (1) one-third of 55 percent; times
new text end

new text begin (2) the net transit sales tax proceeds for that year; times
new text end

new text begin (3)(i) the amount of revenue from the state general sales and use taxes under this
chapter collected within that county in the previous year, divided by
new text end

new text begin (ii) the amount of revenue from the state general sales and use taxes under this
chapter collected within all metropolitan counties in the previous year.
new text end

new text begin Subd. 5a. new text end

new text begin Grant awards; Grant Evaluation and Ranking System (GEARS)
Committee.
new text end

deleted text begin (c)deleted text end new text begin (a)new text end The joint powers board shall establish a GEARS Committee, which
must consist of:

(1) one county commissioner from each county deleted text begin that isdeleted text end in the metropolitan
deleted text begin transportationdeleted text end area, appointed by its county board;

(2) one elected city representative from each county deleted text begin that isdeleted text end in the metropolitan
deleted text begin transportationdeleted text end area;

(3) one additional elected city representative from each county for every additional
400,000 in population, or fraction of 400,000, in the county that is above 400,000 in
population; and

(4) the chair of the Metropolitan Council Transportation Committee.

deleted text begin (d)deleted text end new text begin (b)new text end Each city representative must be elected at a meeting of cities in the
metropolitan deleted text begin transportationdeleted text end area, which must be convened for that purpose by the
Association of Metropolitan Municipalities.

deleted text begin (e)deleted text end new text begin (c)new text end The committee shallnew text begin :
new text end

new text begin (1)new text end evaluate grant applications following objective criteria established by the joint
powers boarddeleted text begin , and mustdeleted text end new text begin ;
new text end

new text begin (2)new text end provide to the joint powers board a selection list of transportation projects that
includes a priority rankingdeleted text begin .deleted text end new text begin ;
new text end

new text begin (3) annually evaluate and award grants to local units of government including
park districts for construction and maintenance of regional bicycle, trail, and pedestrian
infrastructure; and
new text end

new text begin (4) annually evaluate and award grants to cities for planning activities related to
land use and transportation linkages, streetcar development, or bicycle and pedestrian
connections.
new text end

new text begin (d) Grants awarded by the committee under paragraph (c), clauses (3) and (4), are
not subject to approval by the board. Annually, the committee shall award grants under
those clauses in a total amount that equals no more than 3.75 percent of the net transit
sales tax proceeds. Of the grant awards required under this paragraph, at least 80 percent
must be for the purposes specified under paragraph (c), clause (3).
new text end

new text begin (e) The committee may award a grant under paragraph (c), clause (3), only if the
project being funded is in compliance with:
new text end

new text begin (1) a regional nonmotorized transportation system plan developed by the
Metropolitan Council; or
new text end

new text begin (2) a municipal nonmotorized transportation plan, which must provide coordinated
development of transportation facilities located in adjacent communities including
connections between facilities in each community.
new text end

new text begin Subd. 5b. new text end

new text begin Grant awards; consistency with transportation plans. new text end

deleted text begin (f)deleted text end A grant
award for a transit project located within the metropolitan area, as defined in section
473.121, subdivision 2, may be funded only after the Metropolitan Council reviews the
project for consistency with the transit portion of the Metropolitan Council policy plan
and one of the following occurs:

(1) the Metropolitan Council finds the project to be consistent;

(2) the Metropolitan Council initially finds the project to be inconsistent, but after a
good faith effort to resolve the inconsistency through negotiations with the joint powers
board, agrees that the grant award may be funded; or

(3) the Metropolitan Council finds the project to be inconsistent, and submits the
consistency issue for final determination to a panel, which determines the project to be
consistent. The panel is composed of a member appointed by the chair of the Metropolitan
Council, a member appointed by the joint powers board, and a member agreed upon by
both the chair and the joint powers board.

deleted text begin (g) Grants must be funded by the proceeds of the taxes imposed under this section,
bonds, notes, or other obligations issued by the joint powers board under subdivision 7.
deleted text end

deleted text begin (h) Notwithstanding the provisions of this section except subdivision 6a, of
the revenue collected under this section, the joint powers board shall allocate to the
Metropolitan Council, in fiscal years 2012 and 2013, an amount not less than 75 percent of
the net cost of operations for those transit ways that were receiving metropolitan sales tax
funds through an operating grant agreement on June 30, 2011.
deleted text end

deleted text begin (i) The Metropolitan Council shall expend any funds allocated under paragraph (h)
for the operations of the specified transit ways solely within those counties that are in the
metropolitan transportation area.
deleted text end

deleted text begin (j) Nothing in paragraph (h) or (i) prevents grant awards to the Metropolitan Council
for capital and operating assistance for transit ways and park-and-ride facilities.
deleted text end

Subd. 6.

deleted text begin Allocation ofdeleted text end Grant awardsnew text begin ; eligible usesnew text end .

deleted text begin (a)deleted text end The board must allocate
grant awards only for the following deleted text begin transitdeleted text end purposes:

new text begin (1) transit way development and operations, consisting of:
new text end

(i) capital improvements to transit ways, including, but not limited to, commuter
rail rolling stock, light rail vehicles, and transit way buses;

(ii) capital costs for park-and-ride facilities, as defined in section 174.256,
subdivision 2;

(iii) feasibility studies, planning, alternatives analyses, environmental studies,
engineering, property acquisition for transit way purposes, and construction of transit
ways; and

(iv) operating assistance for transit waysnew text begin ; and
new text end

new text begin (2) as specified under subdivision 5anew text end .

deleted text begin (b) The joint powers board must annually award grants to each minimum guarantee
county in an amount no less than the amount of sales tax revenue collected within that
county.
deleted text end

deleted text begin (c) No more than 1.25 percent of the total awards may be annually allocated for
planning, studies, design, construction, maintenance, and operation of pedestrian programs
and bicycle programs and pathways.
deleted text end

Subd. 6a.

Priority of fund uses.

The joint powers board shall allocate all revenues
from the taxes imposed under this section in conformance with the following priority order:

(1) payment of debt service necessary for the fiscal year on bonds or other
obligations issued prior to January 1, 2011, under subdivision 7; and

(2) as otherwise authorized under this section.

Subd. 7.

Bonds.

(a) The joint powers board or any county, acting under a joint
powers agreement as specified in this section, may, by resolution, authorize, issue, and sell
its bonds, notes, or other obligations for the purpose of funding grants under subdivision
6. The joint powers board or county may also, by resolution, issue bonds to refund the
bonds issued pursuant to this subdivision.

(b) The bonds of the joint powers board must be limited obligations, payable solely
from or secured by taxes levied under this section.

(c) The bonds of any county may be limited obligations, payable solely from or
secured by taxes levied under this section. A county may also pledge its full faith, credit,
and taxing power as additional security for the bonds.

(d) Bonds may be issued in one or more series and sold without an election. The bonds
shall be secured, bear the interest rate or rates or a variable rate, have the rank or priority,
be executed in the manner, be payable in the manner, mature, and be subject to the defaults,
redemptions, repurchases, tender options, or other terms, and shall be sold in such manner
as the joint powers board, the regional railroad authority, or the county may determine.

(e) The joint powers board or any regional railroad authority or any county may
enter into and perform all contracts deemed necessary or desirable by it to issue and secure
the bonds, including an indenture of trust with a trustee within or without the state.

(f) Except as otherwise provided in this subdivision, the bonds must be issued and
sold in the manner provided under chapter 475.

(g) The joint powers board or any regional railroad authority wholly within the
metropolitan transportation area also may authorize, issue, and sell its bonds, notes, or
other obligations for the purposes, and in accordance with the procedures, set forth in
section 398A.07 to fund grants as provided in subdivision 6. The bonds of any regional
railroad authority may be limited obligations, payable solely from or secured by taxes
levied under this section. A regional railroad authority may also pledge its taxing powers
as additional security for the bonds.

new text begin Subd. 7a. new text end

new text begin Debt service statement. new text end

new text begin The joint powers board shall, by October
1 annually, submit to the commissioner of revenue a debt service statement, which
must specify an amount equal to the total amount necessary to pay debt service in the
subsequent calendar year on bonds or other obligations issued prior to January 1, 2011,
under subdivision 7. The debt service statement must include identification of the amount
necessary in each month for the payments.
new text end

Subd. 8.

deleted text begin Allocationdeleted text end new text begin Remittancenew text end of revenues.

After the deductions allowed in
section 297A.99, subdivision 11, the commissioner of revenue shall remit thenew text begin netnew text end proceeds
of the taxes imposed under this section on a monthly basis, as deleted text begin directed by the joint powers
board under this section
deleted text end new text begin provided under section 297A.9925new text end .

Subd. 9.

Administration, collection, enforcement.

Except as otherwise provided
in this section, the provisions of section 297A.99, subdivisions 4 and 6 to 12a, govern the
administration, collection, and enforcement of the tax authorized under this section.

Subd. 10.

Termination ofnew text begin local optionnew text end taxes.

(a) The taxes imposed under deleted text begin section
297A.99, subdivision 1,
deleted text end new text begin subdivision 2new text end by a county that withdraws from the joint powers
agreement pursuant to subdivision 3, clause (3), shall terminate when the county has
satisfied its portion, as defined in the joint powers agreement, of all outstanding bonds or
obligations entered into while the county was a member of the agreement.

(b) If the joint powers agreement under subdivision 3 is terminated, the taxes
imposed under deleted text begin section 297A.99, subdivision 1deleted text end new text begin subdivision 2new text end , at the time of the agreement
termination will terminate when all outstanding bonds or obligations are satisfied. The
auditors of the counties in which the taxes are imposed shall see to the administration of
this paragraph.

Subd. 11.

Report.

The joint powers board shall report annually by February 1 to the
deleted text begin house of representatives and senatedeleted text end new text begin chairs and ranking minority members of the legislative
new text end committees having jurisdiction over transportation policy and finance concerning deleted text begin the
deleted text end new text begin (1) board activities and actions, (2) bonds authorized or issued under subdivision 7, (3)
new text end revenues receivednew text begin ,new text end andnew text begin (4)new text end grants awarded.

Subd. 12.

Grant awards to Metropolitan Council.

Any grant award under this
section made to the Metropolitan Council must supplement, and must not supplant,
operating and capital assistance provided by the state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013, for sales and purchases
made after June 30, 2013, except that the imposition of the tax under subdivision 2a shall
be on the first day of the calendar quarter beginning at least 60 days after the date of final
enactment. This section applies in the counties of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, and Washington.
new text end

Sec. 2.

new text begin [297A.9925] METROPOLITAN AREA TRANSIT SALES TAX;
ALLOCATION OF FUNDS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have
the meanings given them:
new text end

new text begin (1) "board" means the joints powers board established under section 297A.992; and
new text end

new text begin (2) "net transit sales tax proceeds" has the meaning given in section 297A.992,
subdivision 1.
new text end

new text begin Subd. 2. new text end

new text begin Allocation formula. new text end

new text begin In the manner specified under subdivision 6, the
commissioner of revenue shall remit the net transit sales tax proceeds as follows:
new text end

new text begin (1) the amount specified in the debt service statement under section 297A.992,
subdivision 7a, to the joint powers board under section 297A.992;
new text end

new text begin (2) a base funding level, as follows:
new text end

new text begin (i) $66,600,000 in calendar year 2014, and $78,200,000 in calendar year 2015 and
each year thereafter, to the Metropolitan Council for transit operations under chapter
473; and
new text end

new text begin (ii) $95,800,000 in calendar year 2014, and $96,700,000 in calendar year 2015 and
each year thereafter, to the board for the purposes specified in this section and section
297A.992; and
new text end

new text begin (3) the remaining revenues following the allocations under clauses (1) and (2), to the
board, the council, or both, as specified in the joint certification under subdivision 2.
new text end

new text begin Subd. 3. new text end

new text begin Joint certification. new text end

new text begin (a) The board and the Metropolitan Council shall
annually develop a joint certification for submission to the commissioner of revenue as
provided in this subdivision. The joint certification must be separately adopted by the
board and by the council.
new text end

new text begin (b) The commissioner of revenue shall estimate the net transit sales tax proceeds,
and by October 15 annually, provide to the board and the council an estimate of allocations
under subdivision 2.
new text end

new text begin (c) If the commissioner does not receive a joint certification by December 1, the
commissioner may not remit the proceeds identified under subdivision 2, clause (3),
except as provided by a legislatively enacted appropriation.
new text end

new text begin (d) The joint certification must specify:
new text end

new text begin (1) total allocation between the council and the board of estimated net transit sales
tax proceeds available under the certification, for the following calendar year;
new text end

new text begin (2) the total budgeted operations and maintenance costs of each transit way that will
be in revenue operations during the following calendar year; and
new text end

new text begin (3) a base funding level established under paragraph (e), if any.
new text end

new text begin (e) Notwithstanding subdivision 1, a joint certification may establish a base funding
level that supersedes the amounts specified in subdivision 2, clause (2), item (i) or (ii), or
both.
new text end

new text begin (f) A joint certification may not exceed the estimated net transit sales tax proceeds
less (1) the allocation required under subdivision 2, clause (1); and (2) a base funding level
under subdivision 2, clause (2), or identified under paragraph (e).
new text end

new text begin (g) By December 15 annually, the board shall electronically submit a copy of any
joint certification to the chairs and ranking minority members of the legislative committees
with jurisdiction over transportation policy and finance. If the commissioner does not
receive a joint certification, the commissioner shall, by December 15 of that year, submit
a notification to the chairs and ranking minority members of the legislative committees
with jurisdiction over transportation policy and finance.
new text end

new text begin Subd. 4. new text end

new text begin Uses and priorities; Metropolitan Council. new text end

new text begin The Metropolitan Council
shall use all funds remitted to the council under this section in the following priority order:
new text end

new text begin (1) payment of debt service on bonds or other obligations for transit capital, if
another source of funds for such payment is not otherwise identified;
new text end

new text begin (2) continuation of bus and rail transit operations, including but not limited to
operations and maintenance of all transit ways under revenue operations; and
new text end

new text begin (3) transit improvements in accordance with the council's transit planning,
including but not limited to expansion and upgrades of bus service and related amenities,
development of arterial bus rapid transit and streetcars as appropriate, and maintenance of
affordable transit fares.
new text end

new text begin Subd. 5. new text end

new text begin Uses and priorities; joint powers board. new text end

new text begin The board shall use all funds
remitted to the board under this section as provided in section 297A.992.
new text end

new text begin Subd. 6. new text end

new text begin Remittance schedule. new text end

new text begin The commissioner of revenue shall remit the net
transit sales tax proceeds on a monthly basis, in amounts that are proportional to the total
being remitted for the year under subdivision 2, provided that the amount remitted in each
month under subdivision 2, clause (1), may not be less than the amount necessary for that
month as specified in the debt service statement under section 297A.992, subdivision
7a. The commissioner may adjust monthly remittance to account for variation between
estimated and actual collections, whether during the calendar year in which collections
occur or in the following calendar year.
new text end

new text begin Subd. 7. new text end

new text begin Transition. new text end

new text begin Notwithstanding subdivision 2, for collections from July 1,
2013, through December 31, 2013, the commissioner of revenue shall remit the net transit
sales tax proceeds as follows:
new text end

new text begin (1) $33,300,000 to the Metropolitan Council for transit operations under chapter
473; and
new text end

new text begin (2) $53,900,000 to the board for the purposes specified in this section and section
297A.992.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013, and applies in the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 3.

Minnesota Statutes 2012, section 473.39, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Revenue bonds. new text end

new text begin (a) In addition to other authority under this section, the
council may, by resolution, authorize the issuance and sale of its revenue bonds, notes, or
other obligations to provide funds to implement the council's transit capital improvement
program and to refund bonds issued under this subdivision.
new text end

new text begin (b) The bonds shall be sold, issued, and secured in the manner provided in chapter
475 for bonds payable solely from or secured by revenues, and the council shall have
the same powers and duties as a municipality and its governing body in issuing bonds
under that chapter. The bonds (1) shall be payable from and secured by a pledge of
all or any part of revenues receivable to the council from the metropolitan area transit
sales tax imposed under section 297A.992 and allocated under section 297A.9925, and
associated investment earnings on debt proceeds; (2) shall not, and shall state they do not,
represent or constitute a general obligation of the council; and (3) shall not be included
in the net debt of any city, county, or other subdivision of the state for the purpose of
any net debt limitation. The bonds will be deemed payable wholly from the income of
revenue-producing conveniences within the meaning of section 475.58. The proceeds of
the bonds may also be used to fund necessary reserves and to pay credit enhancement fees,
issuance costs, and other financing costs during the life of the debt.
new text end

new text begin (c) The bonds may be secured by a bond resolution, or a trust indenture entered into
by the council with a corporate trustee within or outside the state, which shall define the
revenues and bond proceeds pledged for the payment and security of the bonds. The
pledge shall be a valid charge on the revenues received by the council under section
297A.9925. Neither the state, nor any municipality or political subdivision except the
council, nor any member, officer, or employee of the council, is liable on the obligations.
No mortgage of or security interest in any tangible real or personal property shall be
granted to the bondholders or the trustee, but they shall have a valid security interest in the
revenues and bond proceeds received by the council and pledged to the payment of the
bonds. In the bond resolution or trust indenture, the council may make such covenants as
it determines to be reasonable for the protection of the bondholders, including a covenant
to issue general obligation bonds to refund the revenue bonds if and to the extent required
to pay principal and interest on the bonds.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
Washington.
new text end

Sec. 4.

Minnesota Statutes 2012, section 473.39, subdivision 1p, is amended to read:


Subd. 1p.

Obligations; additional authority after July 1, 2010.

After July 1,
2010, in addition to other authority in this section, the council may issue certificates of
indebtedness, bonds, or other obligations under this section in an amount not exceeding
deleted text begin $34,600,000deleted text end new text begin $25,900,000new text end for capital expenditures as prescribed in the council's transit
capital improvement program and for related costs, including the costs of issuance and
sale of the obligations.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
Washington.
new text end

Sec. 5.

Minnesota Statutes 2012, section 473.39, subdivision 1r, is amended to read:


Subd. 1r.

Obligations.

After July 1, 2012, in addition to other authority under this
section, the council may issue certificates of indebtedness, bonds, or other obligations under
this section in an amount not exceeding deleted text begin $39,600,000 for capital expenditures as prescribed
in the council's transit capital improvement program and for related costs, including the
costs of issuance and sale of the obligations. Of this authorization, up to
deleted text end $4,200,000 deleted text begin may
be made available
deleted text end new text begin ,new text end to fund capital projects in amounts that would have otherwise been
funded using replacement transit service provider reserves that were reduced in 2012 as a
result of Laws 2011, First Special Session chapter 3, article 1, section 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
Washington.
new text end

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 473.39, subdivision 1q, new text end new text begin is repealed.
new text end