HF 4111

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 03/16/2026 05:35 p.m.

A bill for an act
relating to transit; providing for certain transit service consolidation in the Twin
Cities metropolitan area; establishing implementation requirements; establishing
a task force; requiring a study; requiring reports; amending Minnesota Statutes
2024, sections 473.385, subdivision 2; 473.388, by adding a subdivision; 473.4485,
by adding a subdivision; proposing coding for new law in Minnesota Statutes,
chapter 473.

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

Section 1.

new text begin [473.376] UNIFIED COMPREHENSIVE TRANSIT.
new text end

new text begin Subdivision 1. new text end

new text begin Metropolitan Council authority. new text end

new text begin The council is the exclusive operator
for transit service in the metropolitan area, which may include service under an agreement
with the council.
new text end

new text begin Subd. 2. new text end

new text begin Local governmental unit authority. new text end

new text begin (a) A local governmental unit located
wholly or in part in the metropolitan area is prohibited from expending money for direct
operation of transit service and related facilities, except under an agreement with the council
as provided in section 473.384 or 473.386.
new text end

new text begin (b) A local governmental unit must not enter into an agreement that obligates any
expenditure on or after July 1, 2027, that is otherwise prohibited under paragraph (a).
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) The requirements under subdivisions 1 and 2, paragraph (a),
apply beginning July 1, 2027.
new text end

new text begin (b) The requirements under subdivision 2, paragraph (a), do not apply to money expended
under an agreement first entered into before the effective date of this section.
new text end

new text begin (c) The requirements under this section do not apply to the Board of Regents of the
University of Minnesota.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment. The requirements of this section pertaining to the Metropolitan Council
apply in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 2.

new text begin [473.3762] COMPREHENSIVE TRANSIT SERVICE PERFORMANCE
REPORT.
new text end

new text begin Subdivision 1. new text end

new text begin Report required. new text end

new text begin The council must submit a report to the chairs and
ranking minority members of the legislative committees with jurisdiction over transportation
policy and finance on the implementation and performance of unified comprehensive transit
under section 473.376.
new text end

new text begin Subd. 2. new text end

new text begin Contents. new text end

new text begin At a minimum, the report under this section must include:
new text end

new text begin (1) a description of transit services consolidated or coordinated under section 473.376,
including routes, service hours, and contracted service providers;
new text end

new text begin (2) service performance metrics, including (i) service hours, (ii) on-time performance,
and (iii) passengers per in-service hour;
new text end

new text begin (3) changes in service levels, coverage, or frequency resulting from consolidation;
new text end

new text begin (4) administrative and contracting costs associated with unified operations;
new text end

new text begin (5) operating costs and per-passenger subsidies before and after consolidation, by service
type and by route;
new text end

new text begin (6) staffing and employment impacts;
new text end

new text begin (7) assessment and status of facilities, vehicles, equipment, and real property impacted
by consolidation; and
new text end

new text begin (8) recommendations for legislative changes necessary to improve the responsiveness,
efficiency, accountability, or performance of unified comprehensive transit.
new text end

new text begin Subd. 3. new text end

new text begin Information. new text end

new text begin Within 60 days of a request, a former recipient of financial
assistance under section 473.388, must provide data and information as requested by the
council that is necessary for the analysis required under this section.
new text end

new text begin Subd. 4. new text end

new text begin Report submission. new text end

new text begin The council must submit the first report under this section
by October 15 following the first full calendar year of operation of unified comprehensive
transit. The council must submit each subsequent report in conjunction with the
comprehensive transit finance report under section 473.4485, subdivision 2.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 3.

Minnesota Statutes 2024, section 473.385, subdivision 2, is amended to read:

Subd. 2.

Service areas.

The council may provide financial assistance (whether directly
or through another entity) to private, for-profit operators of public transit only for the
following services:

(1) services that are not regular route services;

(2) regular route services provided on June 2, 1989, by a private, for-profit operator
under contract with the former regional transit board or under a certificate of convenience
and necessity issued by the commissioner of transportation;

(3) regular route services outside of the fully developed service area that are not operated
on June 2, 1989, by the former Metropolitan Transit Commission;

(4) new text begin on or before June 30, 2027, new text end regular route services provided under section 473.388;

(5) regular route services to recipients who, as part of a negotiated cost-sharing
arrangement with the council, pay at least 50 percent of the cost of the service that directly
benefits the recipient as an institution or organization; or

(6) regular route services that will not be operated for a reasonable subsidy by the council.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 4.

Minnesota Statutes 2024, section 473.388, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Expiration. new text end

new text begin The authority and requirements under this section expire on June
30, 2027.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 5.

Minnesota Statutes 2024, section 473.4485, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Legislative report; unified comprehensive transit. new text end

new text begin (a) In the report required
under subdivision 2, the council must include a section that describes the fiscal impacts of
implementation and performance of unified comprehensive transit under section 473.376.
At a minimum, the section must include:
new text end

new text begin (1) a summary of services consolidated or coordinated under section 473.376;
new text end

new text begin (2) information on operating cost, subsidy per passenger, and passengers per service
hour for services subject to consolidation, including comparisons before and after
implementation as applicable; and
new text end

new text begin (3) administrative and contracting costs associated with unified comprehensive transit.
new text end

new text begin (b) The requirements under this subdivision apply beginning with the report submitted
following the first full calendar year of operation of unified comprehensive transit under
section 473.376.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 6. new text begin CONSOLIDATED METROPOLITAN AREA TRANSIT
IMPLEMENTATION.
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) "Council" means the Metropolitan Council.
new text end

new text begin (c) "Implementation plan" means the implementation plan for consolidation of transit
service as provided under this section.
new text end

new text begin (d) "Metropolitan area" has the meaning given in Minnesota Statutes, section 473.121,
subdivision 2.
new text end

new text begin (e) "Task force" means the Transit Consolidation Task Force established in this section.
new text end

new text begin Subd. 2. new text end

new text begin Implementation requirements. new text end

new text begin (a) The council must implement consolidation
of transit into unified comprehensive service operated by the council in conformance with
Minnesota Statutes, section 473.376, and the implementation plan.
new text end

new text begin (b) The council must make reasonable efforts to enter into agreements with each private
entity that operates transit for a replacement service program under Minnesota Statutes,
section 473.388. An agreement must provide for continuing substantially similar transit
service for at least one year following initial commencement of consolidated transit.
new text end

new text begin Subd. 3. new text end

new text begin Implementation plan. new text end

new text begin (a) In consultation with the task force under this section,
the council must develop an implementation plan for exclusive unified transit service
operation by the council, except for transit service provided by the University of Minnesota.
By February 1, 2027, the council must develop a preliminary draft of the implementation
plan.
new text end

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

new text begin (1) identification and analysis of considerations, processes, and actions necessary to
implement transit operations and service consolidation with the council;
new text end

new text begin (2) a requirement of transit service coverage continuity that maintains substantially
similar transit service routes and service levels for at least one year following initial
commencement of consolidated transit, which must include regular route and special
transportation service but may exclude routes identified in the highest tier of per-passenger
subsidy under the high-subsidy transit service analysis in Laws 2025, First Special Session
chapter 8, article 2, section 120;
new text end

new text begin (3) subject to the requirements in clause (2), an analysis of modifications to transit routes
and service levels offered by replacement service providers under Minnesota Statutes,
section 473.388;
new text end

new text begin (4) an implementation schedule in conformance with the requirements under Minnesota
Statutes, sections 473.376 and 473.388, subdivision 9;
new text end

new text begin (5) an analysis of fiscal impacts, including operational and administrative costs and
efficiencies;
new text end

new text begin (6) an assessment of transit rider impacts;
new text end

new text begin (7) an assessment of relevant or impacted agreements, including any contracts,
memorandums of understanding, joint powers agreements, and leases;
new text end

new text begin (8) an assessment of transit staffing and employment impacts;
new text end

new text begin (9) an assessment of transit facilities, vehicles, equipment, and real property, which must
include analysis of any disposition of assets; and
new text end

new text begin (10) a review of any other consequential implementation considerations or expected
outcomes identified by the task force, the council, or a transit provider.
new text end

new text begin Subd. 4. new text end

new text begin Task force; establishment. new text end

new text begin The council must convene a Transit Consolidation
Task Force to advise and provide recommendations on the implementation process for
unified transit in the metropolitan area.
new text end

new text begin Subd. 5. new text end

new text begin Task force; membership; chair. new text end

new text begin (a) The task force is composed of the following
members:
new text end

new text begin (1) the chair of the Metropolitan Council or a designee;
new text end

new text begin (2) the commissioner of transportation or a designee;
new text end

new text begin (3) two members representing cities participating in the replacement service program
under Minnesota Statutes, section 473.388, appointed by the Suburban Transit Association;
new text end

new text begin (4) one member representing a city in the metropolitan area that is not participating in
the replacement service program, appointed by the Association of Metropolitan
Municipalities;
new text end

new text begin (5) one member representing a city in the metropolitan area that is not substantially
served by transit, appointed by the Association of Metropolitan Municipalities;
new text end

new text begin (6) three members representing counties in the metropolitan area, with at least one
member from a county that contains a city of the first class, appointed by the Association
of Minnesota Counties;
new text end

new text begin (7) one member appointed by the Transportation Advisory Board under Minnesota
Statutes, section 473.146; and
new text end

new text begin (8) one member appointed by the Transportation Accessibility Advisory Committee
under Minnesota Statutes, section 473.375, subdivision 9a.
new text end

new text begin (b) The appointing authorities under paragraph (a) must make the appointments and
designations by August 15, 2026.
new text end

new text begin (c) At its first meeting, the task force must elect a chair or cochairs by a majority vote
of those members present and may elect a vice-chair as necessary.
new text end

new text begin Subd. 6. new text end

new text begin Task force; meetings. new text end

new text begin (a) The chair of the Metropolitan Council must convene
the first meeting of the task force no later than September 15, 2026.
new text end

new text begin (b) The task force must meet at least monthly and as necessary to accomplish the duties
under subdivision 7.
new text end

new text begin (c) The task force is subject to the Open Meeting Law under Minnesota Statutes, chapter
13D.
new text end

new text begin Subd. 7. new text end

new text begin Task force; duties. new text end

new text begin (a) The task force must:
new text end

new text begin (1) assist the council to develop an implementation plan as provided in subdivision 3 to
consolidate transit service in the metropolitan area;
new text end

new text begin (2) review and provide recommendations to the council on transit consolidation
implementation activities; and
new text end

new text begin (3) provide a draft legislative proposal for changes in law necessary to transit
consolidation implementation, including but not limited to conforming statutory changes
and any repeal of obsolete provisions.
new text end

new text begin (b) In assisting with developing the implementation plan, the task force must consult
with affected stakeholders, including but not limited to other local units of government and
transit riders.
new text end

new text begin Subd. 8. new text end

new text begin Task force; administration. new text end

new text begin (a) The council must provide administrative and
staff support for the task force.
new text end

new text begin (b) Upon request of the task force, the Metropolitan Council, the commissioner of
transportation, and local units of government must provide information and technical
assistance in a timely fashion.
new text end

new text begin (c) Compensation, removal, and vacancies for the task force are governed by Minnesota
Statutes, section 15.0575.
new text end

new text begin Subd. 9. new text end

new text begin Report. new text end

new text begin By February 1, 2027, the council and task force must jointly submit a
report on transit consolidation to the chairs and ranking minority members of the legislative
committees with jurisdiction over transportation. At a minimum, the report must:
new text end

new text begin (1) summarize the activities of the task force, including information on each of the task
force's duties;
new text end

new text begin (2) provide the preliminary draft of the implementation plan; and
new text end

new text begin (3) identify transit consolidation implementation actions to date.
new text end

new text begin Subd. 10. new text end

new text begin Resources. new text end

new text begin Notwithstanding Minnesota Statutes, section 473.388, subdivision
4, the council may expend the amount reasonably necessary to support the task force and
develop the implementation plan using money otherwise allocated under that section.
new text end

new text begin Subd. 11. new text end

new text begin Task force; expiration. new text end

new text begin The task force expires on July 1, 2027.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 7. new text begin TRANSIT SERVICE ENHANCEMENT STUDY.
new text end

new text begin (a) The Metropolitan Council must perform a study of bus service enhancement options
in the communities served by the replacement service program under Minnesota Statutes,
section 473.388. At a minimum, the study must:
new text end

new text begin (1) identify, evaluate, and prioritize corridors for potential additional bus rapid transit,
express bus, or commuter bus service;
new text end

new text begin (2) develop initial concepts with mode and route alignment for the highest priority
corridors under clause (1);
new text end

new text begin (3) analyze regular route transit and special transportation service levels; and
new text end

new text begin (4) recommend projects and service modifications to improve transit service within the
communities.
new text end

new text begin (b) By February 1, 2028, the Metropolitan Council must submit a report on the study to
the chairs and ranking minority members of the legislative committees with jurisdiction
over transportation finance and policy and to the Hennepin County Board of Commissioners.
At a minimum, the report must:
new text end

new text begin (1) summarize the study; and
new text end

new text begin (2) provide information on each of the requirements under paragraph (a), clauses (1) to
(4).
new text end

new text begin (c) The council must use existing resources to conduct the study and submit the report
under this section.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end