1.1                          A bill for an act 
  1.2             relating to appropriations; reducing appropriations 
  1.3             for fiscal years 2002 and 2003 to the department of 
  1.4             transportation and other agencies; changing certain 
  1.5             formulas for Greater Minnesota transit assistance; 
  1.6             abolishing reimbursement to local units of government 
  1.7             for certain expenditures relating to peace officer and 
  1.8             firefighter insurance coverage; amending Minnesota 
  1.9             Statutes 2000, section 174.22, by adding a 
  1.10            subdivision; Minnesota Statutes 2001 Supplement, 
  1.11            section 174.24, subdivision 3b; repealing Minnesota 
  1.12            Statutes 2000, section 299A.465, subdivision 4.  
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14  Section 1.  [TRANSPORTATION AND OTHER AGENCIES APPROPRIATIONS 
  1.15  AND REDUCTIONS.] 
  1.16     The dollar amounts in parentheses in the columns under 
  1.17  "APPROPRIATIONS" in sections 2 to 4 are subtracted from the 
  1.18  appropriations in Laws 2001, First Special Session chapter 8, 
  1.19  article 1, to the specified agencies.  The reductions are from 
  1.20  the general fund and apply to the fiscal years indicated for 
  1.21  each purpose.  Reductions in agency base funding are annual 
  1.22  amounts from the general fund beginning in fiscal year 2004.  
  1.23     The figure "2002" or "2003" means that the subtraction from 
  1.24  the appropriations listed under the figure are for the fiscal 
  1.25  year ending June 30, 2002, or June 30, 2003, respectively. 
  1.26                                             APPROPRIATIONS 
  1.27                                         Available for the Year 
  1.28                                             Ending June 30 
  1.29                                            2002         2003 
  1.30  Sec. 2.  TRANSPORTATION                ($50,000)    ($564,000)
  2.1   Subdivision 1.  Aeronautics             (15,000)      (50,000)
  2.2   This reduction is from the 
  2.3   appropriation from the general fund for 
  2.4   air transportation services.  This 
  2.5   reduction reduces the agency's budget 
  2.6   base by $50,000. 
  2.7   Subd. 2.  Transit                       (14,000)     (234,000)
  2.8   Of this reduction: 
  2.9   (a) $183,000 the second year is from 
  2.10  Greater Minnesota transit assistance as 
  2.11  a result of the statutory change in 
  2.12  section 7.  This reduction reduces the 
  2.13  agency's budget base by $366,000. 
  2.14  (b) $14,000 the first year and $51,000 
  2.15  the second year are from transit 
  2.16  administration.  This reduction reduces 
  2.17  the agency's budget base by $51,000. 
  2.18  Subd. 3.  Railroads and Waterways        (6,000)      (28,000)
  2.19  This reduction reduces the agency's 
  2.20  budget base by $28,000. 
  2.21  Subd. 4.  Motor Carrier Regulation       (2,000)      (13,000)
  2.22  This reduction reduces the agency's 
  2.23  budget base by $13,000. 
  2.24  Subd. 5.  State Road Operations           -0-          (1,000)
  2.25  This reduction is for electronic 
  2.26  communications. 
  2.27  This reduction reduces the agency's 
  2.28  budget base by $1,000. 
  2.29  Subd. 6.  General Support               (13,000)      (56,000)
  2.30  This reduction reduces the agency's 
  2.31  budget base by $56,000. 
  2.32  Sec. 3.  METROPOLITAN COUNCIL          (400,000)   (8,700,000)
  2.33  Of these reductions: 
  2.34  (a) $7,000,000 the second year is from 
  2.35  metro transit operations.  The 
  2.36  metropolitan council shall achieve this 
  2.37  reduction by (1) increasing operating 
  2.38  revenue, or (2) reducing operating 
  2.39  expenses by (i) reducing or eliminating 
  2.40  service on routes with a fare box 
  2.41  recovery of less than ten percent, or 
  2.42  (ii) reducing nonpeak service.  This 
  2.43  reduction reduces the agency's budget 
  2.44  base by $7,000,000. 
  2.45  (b) $300,000 the first year and 
  2.46  $1,450,000 the second year are from 
  2.47  metro transit administration.  Of the 
  2.48  reduction in the second year, $500,000 
  2.49  is from advertising and $950,000 from 
  2.50  other administration.  This reduction 
  2.51  reduces the agency's budget base by 
  2.52  $1,450,000. 
  3.1   (c) $100,000 the first year and 
  3.2   $250,000 the second year are from 
  3.3   metropolitan transportation services 
  3.4   other than metro transit and metro 
  3.5   mobility.  This reduction reduces the 
  3.6   agency's budget base by $250,000. 
  3.7   Sec. 4.  PUBLIC SAFETY                   (9,000)     (1,459,000)
  3.8   Subdivision 1.  Administration and      
  3.9   Related Services                          -0-        (1,022,000)
  3.10  Of this reduction: 
  3.11  (a) $557,000 is from the amount 
  3.12  appropriated from the general fund for 
  3.13  transfer by the commissioner of finance 
  3.14  to the trunk highway fund on December 
  3.15  31, 2002, in order to reimburse the 
  3.16  trunk highway fund for expenses not 
  3.17  related to the fund.  This reduction 
  3.18  reduces the agency's budget base by 
  3.19  $833,000. 
  3.20  (b) $315,000 is from elimination of 
  3.21  reimbursements under Minnesota 
  3.22  Statutes, section 299A.465, subdivision 
  3.23  4.  This reduction reduces the agency's 
  3.24  budget base by $315,000. 
  3.25  (c) $150,000 is from technical support 
  3.26  services and is from the amount 
  3.27  transferred from the fiscal year 2003 
  3.28  appropriation for this purpose to the 
  3.29  bureau of criminal apprehension.  This 
  3.30  reduction reduces the agency's budget 
  3.31  base by $150,000.  
  3.32  Subd. 2.  State Patrol                   (9,000)      (37,000)
  3.33  This reduction is from patrolling 
  3.34  highways.  This reduction reduces the 
  3.35  agency's budget base by $37,000. 
  3.36  Subd. 3.  Driver and Vehicle Services     -0-        (400,000)
  3.37  The commissioner shall not achieve this 
  3.38  reduction by reducing the number of 
  3.39  driver license examining stations in 
  3.40  Greater Minnesota below the number open 
  3.41  on April 1, 2002.  This reduction 
  3.42  reduces the agency's budget base by 
  3.43  $400,000. 
  3.44     Sec. 5.  [APPROPRIATIONS REDUCED AND CANCELED.] 
  3.45     Of the appropriations in Laws 2000, chapter 492, article 2, 
  3.46  to the metropolitan council for a bus transitway, the 
  3.47  appropriation for fiscal year 2001 is reduced to $4,000,000 and 
  3.48  the appropriation for fiscal year 2002 is canceled. 
  3.49     Sec. 6.  Minnesota Statutes 2000, section 174.22, is 
  3.50  amended by adding a subdivision to read: 
  3.51     Subd. 14.  [LARGE URBANIZED AREA SERVICE.] "Large urbanized 
  3.52  area service" means the transportation service provided by the 
  4.1   Duluth transit authority but does not include elderly and 
  4.2   handicapped service, as defined in subdivision 13, provided by 
  4.3   that transit authority. 
  4.4      Sec. 7.  Minnesota Statutes 2001 Supplement, section 
  4.5   174.24, subdivision 3b, is amended to read: 
  4.6      Subd. 3b.  [OPERATING ASSISTANCE.] (a) The commissioner 
  4.7   shall determine the total operating cost of any public transit 
  4.8   system receiving or applying for assistance in accordance with 
  4.9   generally accepted accounting principles.  To be eligible for 
  4.10  financial assistance, an applicant or recipient shall provide to 
  4.11  the commissioner all financial records and other information and 
  4.12  shall permit any inspection reasonably necessary to determine 
  4.13  total operating cost and correspondingly the amount of 
  4.14  assistance which may be paid to the applicant or recipient.  
  4.15  Where more than one county or municipality contributes 
  4.16  assistance to the operation of a public transit system, the 
  4.17  commissioner shall identify one as lead agency for the purpose 
  4.18  of receiving money under this section.  
  4.19     (b) Prior to distributing operating assistance to eligible 
  4.20  recipients for any contract period, the commissioner shall place 
  4.21  all recipients into one of the following classifications:  large 
  4.22  urbanized area service, urbanized area service, small urban area 
  4.23  service, rural area service, and elderly and handicapped 
  4.24  service.  The commissioner shall distribute funds under this 
  4.25  section so that the percentage of total operating cost paid by 
  4.26  any recipient from local sources will not exceed the percentage 
  4.27  for that recipient's classification, except as provided in an 
  4.28  undue hardship case.  The percentages must be:  for large 
  4.29  urbanized area service, 45 percent; for urbanized area service 
  4.30  and small urban area service, 40 percent; for rural area 
  4.31  service, 35 percent; and for elderly and handicapped service, 35 
  4.32  percent.  The remainder of the total operating cost will be paid 
  4.33  from state funds less any assistance received by the recipient 
  4.34  from any federal source.  For purposes of this subdivision 
  4.35  "local sources" means payments under section 174.242 plus all 
  4.36  local sources of funds and includes all operating revenue, tax 
  5.1   levies, and contributions from public funds, except that the 
  5.2   commissioner may exclude from the total assistance contract 
  5.3   revenues derived from operations the cost of which is excluded 
  5.4   from the computation of total operating cost.  Total operating 
  5.5   costs of the Duluth transit authority or a successor agency 
  5.6   shall not include costs related to the Superior, Wisconsin 
  5.7   service contract and the independent school district No. 709 
  5.8   service contract.  
  5.9      (c) If a recipient informs the commissioner in writing 
  5.10  after the establishment of these percentages but prior to the 
  5.11  distribution of financial assistance for any year that paying 
  5.12  its designated percentage of total operating cost from local 
  5.13  sources will cause undue hardship, the commissioner may reduce 
  5.14  the percentage to be paid from local sources by the recipient 
  5.15  and increase the percentage to be paid from local sources by one 
  5.16  or more other recipients inside or outside the classification, 
  5.17  provided that no recipient shall have its percentage thus 
  5.18  reduced or increased for more than two years successively.  If 
  5.19  for any year the funds appropriated to the commissioner to carry 
  5.20  out the purposes of this section are insufficient to allow the 
  5.21  commissioner to pay the state share of total operating cost as 
  5.22  provided in this paragraph, the commissioner shall reduce the 
  5.23  state share in each classification to the extent necessary. 
  5.24     Sec. 8.  [REPEALER.] 
  5.25     Minnesota Statutes 2000, section 299A.465, subdivision 4, 
  5.26  is repealed. 
  5.27     Sec. 9.  [EFFECTIVE DATE.] 
  5.28     Sections 1 to 5 are effective April 1, 2002.  Sections 6 to 
  5.29  8 are effective July 1, 2002.