1.1 	A bill for an act
1.2 	relating to transportation; authorizing bonding and appropriating money for 
1.3 	highways; creating trunk highway motor vehicle sales tax collection account in 
1.4 	the trunk highway fund; modifying allocation of proceeds of motor vehicle sales 
1.5 	tax; removing obsolete language and making technical and clarifying changes; 
1.6 	amending Minnesota Statutes 2004, section 297B.09; proposing coding for new 
1.7 	law in Minnesota Statutes, chapter 167.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. HIGHWAY BONDING AND APPROPRIATION.
 1.10 		Subdivision 1.Appropriation. $15,000,000 is appropriated from the bond proceeds 
1.11 	account in the trunk highway fund to the commissioner of transportation for program 
1.12 	delivery and for the cost of actual payments to landowners for lands acquired for highway 
1.13 	rights-of-way, payments to lessees, interest subsidies, and relocation expenses.
1.14 		Subd. 2.Bond sale. To provide the money appropriated in this section from the 
1.15 	trunk highway fund, the commissioner of finance shall sell and issue bonds of the state in 
1.16 	an amount up to $15,000,000 in the manner, upon the terms, and with the effect prescribed 
1.17 	by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota Constitution, 
1.18 	article XIV, section 11. The proceeds of the bonds, except accrued interest and any 
1.19 	premium received on the sales of the bonds, must be credited to a bond proceeds account 
1.20 	in the trunk highway fund. 
1.21 		Subd. 3.Bond sale expenses. $15,000 is appropriated from the bond proceeds 
1.22 	account in the trunk highway fund to the commissioner of finance for bond sale expenses 
1.23 	under Minnesota Statutes, sections 16A.641, subdivision 8, and 167.50, subdivision 4.

1.24 	EFFECTIVE DATE. This section is effective July 1, 2006.

2.1 	Sec. 2. HIGHWAY BONDING AND APPROPRIATION.
 2.2 		Subdivision 1.Appropriation. $35,000,000 is appropriated from the bond proceeds 
2.3 	account in the trunk highway fund to the commissioner of transportation for program 
2.4 	delivery and for the cost of actual payments to landowners for lands acquired for highway 
2.5 	rights-of-way, payments to lessees, interest subsidies, and relocation expenses.
2.6 		Subd. 2.Bond sale. To provide the money appropriated in this section from the 
2.7 	trunk highway fund, the commissioner of finance shall sell and issue bonds of the state in 
2.8 	an amount up to $35,000,000 in the manner, upon the terms, and with the effect prescribed 
2.9 	by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota Constitution, 
2.10 	article XIV, section 11. The proceeds of the bonds, except accrued interest and any 
2.11 	premium received on the sales of the bonds, must be credited to a bond proceeds account 
2.12 	in the trunk highway fund. 
2.13 		Subd. 3.Bond sale expenses. $35,000 is appropriated from the bond proceeds 
2.14 	account in the trunk highway fund to the commissioner of finance for bond sale expenses 
2.15 	under Minnesota Statutes, sections 16A.641, subdivision 8, and 167.50, subdivision 4.

2.16 	Sec. 3. HIGHWAY BONDING AND APPROPRIATIONS.
 2.17 		Subdivision 1.Trunk highway projects financed by state bonds. (a) 
2.18 	$2,450,000,000 is appropriated from the bond proceeds account in the trunk highway fund 
2.19 	to the commissioner of transportation for the actual construction, reconstruction, and 
2.20 	improvement of trunk highways.  This includes the cost of actual payments to landowners 
2.21 	for lands acquired for highway rights-of-way, payments to lessees, interest subsidies, 
2.22 	and relocation expenses.
2.23 	(b) The commissioner of transportation may use up to $375,000,000 of this 
2.24 	appropriation for program delivery.  
2.25 		Subd. 2.Bond sale. To provide the money appropriated in subdivision 1 from the 
2.26 	bond proceeds account in the trunk highway fund, the commissioner of finance shall sell 
2.27 	and issue bonds of the state in an amount up to $2,450,000,000 in the manner, on the 
2.28 	terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, 
2.29 	and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts 
2.30 	requested by the commissioner of transportation.  The proceeds of the bonds, except 
2.31 	accrued interest and any premium received from the sale of the bonds, must be deposited 
2.32 	in the bond proceeds account in the trunk highway fund.
3.1 		Subd. 3.Bond sale expenses. $2,450,000 is appropriated from the bond proceeds 
3.2 	account in the trunk highway fund to the commissioner of finance for bond sale expenses 
3.3 	under Minnesota Statutes, sections 16A.641, subdivision 8, and 167.50, subdivision 4.

3.4 	Sec. 4. [167.515] MOTOR VEHICLE SALES TAX COLLECTION ACCOUNT.
3.5 	The commissioner of finance shall maintain in the trunk highway fund a separate 
3.6 	account designated as the Minnesota motor vehicle sales tax collection account. Money in 
3.7 	the account consists of proceeds allocated to the account from the motor vehicles sales tax 
3.8 	under section 297B.09. Money from the account may be spent for debt service incurred 
3.9 	pursuant to sections 2 and 3. 

3.10 	Sec. 5. Minnesota Statutes 2004, section 297B.09, is amended to read:
3.11 	297B.09 ALLOCATION OF REVENUE.
3.12 		Subdivision 1.Deposit of revenues. (a) Money collected and received under this 
3.13 	chapter must be deposited as provided in this subdivision.
3.14 	(b) From July 1, 2002, to June 30, 2003, 32 percent of the money collected and 
3.15 	received must be deposited in the highway user tax distribution fund, 20.5 percent must be 
3.16 	deposited in the metropolitan area transit fund under section  16A.88, and  1.25 percent 
3.17 	must be deposited in the greater Minnesota transit fund under section  16A.88. The 
3.18 	remaining money must be deposited in the general fund. 
3.19 	(c) From July 1, 2003, tothrough June 30, 2007, 30 percent of the money collected 
3.20 	and received must be deposited in the highway user tax distribution fund, 21.5 percent 
3.21 	must be deposited in the metropolitan area transit fund under section  16A.88,  1.43
3.22 	percent must be deposited in the greater Minnesota transit fund under section  16A.88, 
3.23 	0.65 percent must be deposited in the county state-aid highway fund, and 0.17 percent 
3.24 	must be deposited in the municipal state-aid street fund. The remaining money must 
3.25 	be deposited in the general fund. 
3.26 	(d) On and after(c) From July 1, 2007, 32through June 30, 2008, 38.25 percent of 
3.27 	the money collected and received must be deposited in the highway user tax distribution 
3.28 	fund, 20.524.225 percent must be deposited in the metropolitan area transit fund under 
3.29 	section  16A.88, and  1.251.275 percent must be deposited in the greater Minnesota transit 
3.30 	fund under section  16A.88. The remaining money must be deposited in the general 
3.31 	fund. Of the amount from this paragraph deposited in the state trunk highway fund, 16.5 
3.32 	percent must be deposited in the motor vehicle sales tax collection account established 
3.33 	in section 167.515.
4.1 	(d) From July 1, 2008, through June 30, 2009, 44.25 percent must be deposited in the 
4.2 	highway user tax distribution fund, 28.025 percent must be deposited in the metropolitan 
4.3 	area transit fund under section 16A.88, and 1.475 percent must be deposited in the greater 
4.4 	Minnesota transit fund under section 16A.88. The remaining money must be deposited in 
4.5 	the general fund. Of the amount from this paragraph deposited in the state trunk highway 
4.6 	fund, 27.5 percent must be deposited in the motor vehicle sales tax collection account 
4.7 	established in section 167.515.
4.8 	(e) From July 1, 2009, through June 30, 2010, 50.25 percent must be deposited in the 
4.9 	highway user tax distribution fund, 31.825 percent must be deposited in the metropolitan 
4.10 	area transit fund under section 16A.88, and 1.675 percent must be deposited in the greater 
4.11 	Minnesota transit fund under section 16A.88. The remaining money must be deposited in 
4.12 	the general fund. Of the amount from this paragraph deposited in the state trunk highway 
4.13 	fund, 36.5 percent must be deposited in the motor vehicle sales tax collection account 
4.14 	established in section 167.515.
4.15 	(f) From July 1, 2010, through June 30, 2011, 56.25 percent must be deposited in the 
4.16 	highway user tax distribution fund, 35.625 percent must be deposited in the metropolitan 
4.17 	area transit fund under section 16A.88, and 1.875 percent must be deposited in the greater 
4.18 	Minnesota transit fund under section 16A.88. The remaining money must be deposited in 
4.19 	the general fund. Of the amount from this paragraph deposited in the state trunk highway 
4.20 	fund, 43 percent must be deposited in the motor vehicle sales tax collection account 
4.21 	established in section 167.515.
4.22 	(g) On and after July 1, 2011, 60 percent must be deposited in the highway user tax 
4.23 	distribution fund, 38 percent must be deposited in the metropolitan area transit fund under 
4.24 	section 16A.88, and two percent must be deposited in the greater Minnesota transit fund 
4.25 	under section 16A.88. The remaining money must be deposited in the general fund. Of 
4.26 	the amount from this paragraph deposited in the state trunk highway fund, 46.7 percent 
4.27 	must be deposited in the motor vehicle sales tax collection account established in section 
4.28 	167.515.

4.29 	Sec. 6. CONTINGENT EFFECTIVE DATE.
 4.30 	Sections 2 to 5 are effective upon the adoption of the constitutional amendment 
4.31 	proposed in Laws 2005, chapter 88, article 3, section 9, by the people at the 2006 general 
4.32 	election.