SF 3233

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/03/2025 09:32 a.m.

A bill for an act
relating to transportation; establishing a road funding alternatives task force;
requiring a report; appropriating money.

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

Section 1. new text begin ROAD FUNDING ALTERNATIVES TASK FORCE.
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new text begin Subdivision 1. new text end

new text begin Task force established. new text end

new text begin A road funding alternatives task force is
established to review the adoption of all-electric and plug-in hybrid vehicles in Minnesota
and make recommendations on the need for road funding alternatives in lieu of traditional
fuel tax revenues.
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new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The task force consists of the following members:
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new text begin (1) four senators, two appointed by the senate majority leader and two appointed by the
senate minority leader;
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new text begin (2) four members of the house of representatives, two appointed by the speaker of the
house and two appointed by the house minority leader;
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new text begin (3) the commissioner of transportation or a designee who is an employee in the
Department of Transportation;
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new text begin (4) the commissioner of public safety or a designee who is an employee in the Department
of Public Safety;
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new text begin (5) the commissioner of management and budget or a designee who is an employee in
the Department of Management and Budget;
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new text begin (6) four members of the public appointed by the governor;
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new text begin (7) two representatives from the Center for Transportation Studies at the University of
Minnesota;
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new text begin (8) one representative from an electric utility or cooperative;
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new text begin (9) one representative from an organization with expertise in electric vehicle technology;
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new text begin (10) one representative with expertise in alternative fuel vehicle adoption patterns;
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new text begin (11) one representative from electric vehicle manufacturers;
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new text begin (12) one representative from electric vehicle charging infrastructure companies; and
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new text begin (13) one representative from the Minnesota Deputy Registrars Association.
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new text begin (b) The appointing authorities under paragraph (a) must make the appointments by July
31, 2025.
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new text begin (c) At its first meeting, the task force must elect from among its legislative members a
chair or cochairs and any other officers that the task force determines necessary or convenient.
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new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The task force must:
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new text begin (1) evaluate Minnesota's current assessment of all-electric vehicles in Minnesota Statutes,
section 168.013, subdivision 1m, to determine whether the current assessment serves as an
appropriate system-wide source of revenue with the increased adoption of electric vehicles;
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new text begin (2) develop, analyze, and evaluate proposed legislation on alternative road funding
mechanisms in Minnesota with an emphasis on sustainable solutions to transportation
infrastructure funding issues, including:
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new text begin (i) a road user charge or mileage-based user fee for all-electric vehicles, including whether
the assessment should be mandatory or voluntary;
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new text begin (ii) an increase or an indexed increase in the surcharge in Minnesota Statutes, section
168.013, subdivision 1m;
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new text begin (iii) a tax on each kilowatt hour of electric fuel placed into the battery of an electric
vehicle at a public charging station;
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new text begin (iv) a flat rate tax imposed on electric current sold by a charging station to be assessed
on sales per kilowatt hour, sales per hour, or a subscription fee; and
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new text begin (v) potential assessments on electric commercial vehicles;
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new text begin (3) analyze the potential use of indexed adjustments to proposed alternative road funding
mechanisms, such as the Minnesota Highway Construction Cost Index used for the gasoline
tax rate in Minnesota Statutes, section 296A.07, subdivision 3;
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new text begin (4) analyze the application and viability of potential user-based discounts to the rate of
a fee, tax, or surcharge, including but not limited to:
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new text begin (i) telematic-based discounts for certain driving behaviors;
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new text begin (ii) the ability to pay monthly, quarterly, or in a fashion similar to the gas tax; or
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new text begin (iii) a different rate of tax imposed on electric fuel placed into an electric vehicle at
public or private residences;
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new text begin (5) conduct a survey of how other states assess all-electric vehicles, including whether
those revenue mechanisms constitute a long-term and stable source of state funds and the
identification of key policy and implementation challenges; and
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new text begin (6) estimate costs and fiscal impacts of implementing the proposed legislation with a
timeline of implementing the proposed funding mechanism by the beginning of 2028.
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new text begin Subd. 4. new text end

new text begin State agencies. new text end

new text begin State agencies must cooperate with the task force and provide
requested information in a timely fashion.
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new text begin Subd. 5. new text end

new text begin Meetings. new text end

new text begin (a) By August 1, 2025, the chair of the Legislative Coordinating
Commission must convene the first meeting of the task force.
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new text begin (b) The task force must establish a schedule for meetings and meet as necessary to
accomplish the duties under subdivision 3.
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new text begin (c) The task force is subject to the Minnesota Open Meeting Law under Minnesota
Statutes, chapter 13D.
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new text begin Subd. 6. new text end

new text begin Administration. new text end

new text begin (a) The Legislative Coordinating Commission must provide
administrative services and support and physical or virtual meeting space. Upon request of
the task force, the commissioner of transportation must provide technical support.
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new text begin (b) Member compensation and reimbursement for expenses are governed by Minnesota
Statutes, section 15.059, subdivision 3.
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new text begin Subd. 7. new text end

new text begin Legislative report. new text end

new text begin By March 15, 2026, the task force must submit a report to
the chairs and ranking minority members of the legislative committees with jurisdiction
over transportation finance and policy. At a minimum, the report must describe the activities
of the task force, including its evaluations and findings, cost estimates, and recommendations
for legislation to implement alternative road funding mechanisms as a stable, statewide
revenue source for Minnesota's transportation system.
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new text begin Subd. 8. new text end

new text begin Expiration. new text end

new text begin The task force expires upon submission of the report required
under subdivision 7.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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Sec. 2. new text begin APPROPRIATION.
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new text begin $....... in fiscal year 2026 is appropriated from the general fund to the commissioner of
transportation for the road funding alternatives task force established in section 1.
Notwithstanding Minnesota Statutes, section 16B.98, the commissioner may use up to two
percent of this appropriation for administrative costs. This is a onetime appropriation and
is available until expended.
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