1.1 	A bill for an act
1.2 	relating to metropolitan government; modifying transit service contract 
1.3 	requirements; amending Minnesota Statutes 2004, section 473.384, subdivisions 
1.4 	1, 2.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 473.384, subdivision 1, is amended to read:
1.7 		Subdivision 1.Contracts required. The council shall make contracts with eligible 
1.8 	recipients for financial assistance to transit service within the metropolitan area. The 
1.9 	council may not give financial assistance to another transit provider without first having 
1.10 	executed a contract. A provider of transit service may receive financial assistance from 
1.11 	the council through a subcontract if the subcontractor meets the eligibility requirements 
1.12 	of subdivision 2 and has been approved by the council, and the primary contractor is 
1.13 	an organization described in section 501(c)(3) of the Internal Revenue Code of 1986, 
1.14 	as amended from time to time.
1.15 	The provisions of this section do not apply to contracts made under sections  473.386
1.16 	and  473.388. 

1.17 	Sec. 2. Minnesota Statutes 2004, section 473.384, subdivision 2, is amended to read:
1.18 		Subd. 2.Eligibility. To be eligible to receive financial assistance by contract or 
1.19 	subcontract under this section a recipient must be:
1.20 	(a) a county, statutory or home rule charter city or town or combination thereof, or 
1.21 	public authority organized and existing pursuant to chapter 398A, providing financial 
1.22 	assistance to or providing or operating public transit; or
1.23 	(b) a private provider of public transit.