HF 2848

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/26/2025 11:33 a.m.

A bill for an act
relating to transportation; modifying certain reporting requirements for local
transportation funds; requiring a report; amending Minnesota Statutes 2024, sections
174.07, subdivision 3; 174.49, by adding a subdivision; 297A.993, subdivision
2a; 398A.04, by adding a subdivision; 473.4465, subdivision 4; proposing coding
for new law in Minnesota Statutes, chapter 174.

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

Section 1.

new text begin [174.065] CONSOLIDATED LOCAL TRANSPORTATION FINANCIALS
REPORT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Funding source" means the relevant tax or revenue source for which financial
reporting information is required.
new text end

new text begin (c) "Reporting unit" means a county, regional railroad authority, or other political
subdivision that is specifically required to submit financial information under this section.
new text end

new text begin Subd. 2. new text end

new text begin Consolidated report. new text end

new text begin (a) By March 1 annually, the commissioner must submit
a report on consolidated local transportation financials to the chairs and ranking minority
members of the legislative committees with jurisdiction over transportation finance and
policy.
new text end

new text begin (b) At a minimum, the report must include:
new text end

new text begin (1) the information specified under subdivision 3 for each funding source as required
under sections 174.49, subdivision 7; 297A.993, subdivision 2a; and 398A.04, subdivision
12;
new text end

new text begin (2) subtotals for each reporting unit that is required to submit financial information under
this section; and
new text end

new text begin (3) totals for all reporting units.
new text end

new text begin (c) The commissioner may establish submission requirements for the financial
information, which may include but is not limited to a submission deadline and a format
for the fiscal details.
new text end

new text begin Subd. 3. new text end

new text begin Required financial information. new text end

new text begin (a) At a minimum, each reporting unit must
submit financial information on the funding source that includes:
new text end

new text begin (1) actual allocations or collections to the reporting unit for each of the previous five
calendar years;
new text end

new text begin (2) balance actuals for each of the previous five calendar years;
new text end

new text begin (3) estimates of the amount that is expected to be allocated to or collected by the reporting
unit in the current year and for the next ten calendar years; and
new text end

new text begin (4) for each of the previous five calendar years, the current calendar year, and for the
next ten calendar years:
new text end

new text begin (i) the amount expended or proposed to be expended for each of the following, as
applicable:
new text end

new text begin (A) planning, project development, construction, operation, or maintenance of guideways,
as defined in section 473.4485, subdivision 1, paragraph (d);
new text end

new text begin (B) nonguideway transit uses;
new text end

new text begin (C) active transportation uses;
new text end

new text begin (D) highway uses; and
new text end

new text begin (E) uses not otherwise specified in subitems (A) to (D);
new text end

new text begin (ii) for each category under item (i), subitems (A) to (D), an accompanying list of
completed, current, planned, and anticipated projects; and
new text end

new text begin (iii) an estimated balance of unspent or undesignated amounts from the funding source.
new text end

new text begin (b) The listing under paragraph (a), clause (4), item (ii), must include a brief identification
or description of each project or program.
new text end

new text begin Subd. 4. new text end

new text begin Aid withholding. new text end

new text begin The commissioner must annually withhold payment of 25
percent of the amount apportioned under section 162.07 for a county that (1) is a reporting
unit, and (2) fails to meet financial information submission requirements established by the
commissioner under subdivision 2, paragraph (c). The commissioner may release withheld
funds no sooner than 30 days following acceptance of a submission.
new text end

Sec. 2.

Minnesota Statutes 2024, section 174.07, subdivision 3, is amended to read:

Subd. 3.

Exceptions.

This section does not apply to:

(1) a law that establishes a requirement with general applicability for an agency or
agencies to submit a report, including but not limited to reports and information under
sections 14.05, subdivision 5, and 14.116;

(2) a law that specifies a reporting expiration date or a date for the submission of a final
report;

(3) information required by law to be included in a budget submission to the legislature
under section 16A.11;

(4) the plans required under section 174.03, subdivisions 1a, 1b, and 1c;

(5) the forecast information requirements under section 174.03, subdivision 9; and

(6) the reports required under sections 161.088, subdivision 7; 161.089; 161.3203,
subdivision 4; 165.03, subdivision 8; 174.03, subdivision 12; new text begin 174.065; new text end 174.185, subdivision
3; 174.247; 174.56, subdivisions 1 and 2; and 174.75, subdivision 3.

Sec. 3.

Minnesota Statutes 2024, section 174.49, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Metropolitan counties; financial information. new text end

new text begin (a) A metropolitan county
must annually submit financial information to the commissioner on all sources of funds that
are subject to the requirements under subdivision 6. The financial information must be
submitted as provided under section 174.065 in the manner and by the dates prescribed by
the commissioner.
new text end

new text begin (b) In addition to the requirements under section 174.065, subdivision 3, the submitted
financial information must include the amount expended or proposed to be expended in
each of the allowable uses under subdivision 6 for:
new text end

new text begin (1) each of the previous five calendar years;
new text end

new text begin (2) the current calendar year; and
new text end

new text begin (3) the next ten calendar years.
new text end

Sec. 4.

Minnesota Statutes 2024, section 297A.993, subdivision 2a, is amended to read:

Subd. 2a.

Uses reporting.

deleted text begin By February 15 of each even-numbered year, deleted text end A metropolitan
county, as defined in section 473.121, subdivision 4, that imposes the taxes under this section
must new text begin annually new text end submit deleted text begin a report to the chairs and ranking minority members of the legislative
committees with jurisdiction over transportation policy and finance deleted text end new text begin financial information
to the commissioner of transportation as provided under section 174.065 in the manner and
by the dates prescribed by the commissioner new text end .

deleted text begin At a minimum, the report must include:
deleted text end

deleted text begin (1) actual transportation sales tax collections by the county over the previous five calendar
years;
deleted text end

deleted text begin (2) an estimation of the total sales tax revenue that is estimated to be collected by the
county in the current year and for the next ten calendar years; and
deleted text end

deleted text begin (3) for each of the previous five calendar years, the current calendar year, and for the
next ten calendar years:
deleted text end

deleted text begin (i) the amount of sales tax revenue expended or proposed to be expended for each of
the following:
deleted text end

deleted text begin (A) planning, construction, operation, or maintenance of guideways, as defined in section
473.4485, subdivision 1, paragraph (d);
deleted text end

deleted text begin (B) nonguideway transit and active transportation uses;
deleted text end

deleted text begin (C) highway uses; and
deleted text end

deleted text begin (D) uses not otherwise specified in subitems (A) to (C);
deleted text end

deleted text begin (ii) completed, current, planned, and eligible projects for each category under item (i);
and
deleted text end

deleted text begin (iii) an estimated balance of unspent or undesignated county sales tax revenue.
deleted text end

Sec. 5.

Minnesota Statutes 2024, section 398A.04, is amended by adding a subdivision to
read:

new text begin Subd. 12. new text end

new text begin Financial information. new text end

new text begin An authority associated with a metropolitan county,
as defined in section 473.121, subdivision 4, must annually submit financial information to
the commissioner of transportation as provided under section 174.065 in the manner and
by the dates prescribed by the commissioner.
new text end

Sec. 6.

Minnesota Statutes 2024, section 473.4465, subdivision 4, is amended to read:

Subd. 4.

Use of funds; metropolitan counties deleted text begin ; reporting deleted text end .

deleted text begin (a) deleted text end A metropolitan county
must use revenue from the regional transportation sales and use tax under section 297A.9915
in conformance with the requirements under section 174.49, subdivision 6.

deleted text begin (b) By February 15 of each even-numbered year, a metropolitan county must submit a
report to the chairs and ranking minority members of the legislative committees with
jurisdiction over transportation policy and finance on the use of funds received under section
297A.9915. This report must be submitted in conjunction with the report required under
section 297A.993, subdivision 2a. At a minimum, the report must include:
deleted text end

deleted text begin (1) actual sales tax collections allocated to the county over the previous five calendar
years;
deleted text end

deleted text begin (2) an estimation of the total sales tax revenue that is estimated to be allocated to the
county in the current year and for the next ten calendar years; and
deleted text end

deleted text begin (3) for each of the previous five calendar years, the current calendar year, and for the
next ten calendar years:
deleted text end

deleted text begin (i) the amount of sales tax revenue expended or proposed to be expended for each of
the allowable uses under section 174.49, subdivision 6;
deleted text end

deleted text begin (ii) completed, current, planned, and eligible projects or programs for each category
under item (i); and
deleted text end

deleted text begin (iii) an estimated balance of unspent or undesignated regional transportation sales and
use tax revenue.
deleted text end