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HF 1546

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 04/16/2003

Current Version - as introduced

  1.1                          A bill for an act
  1.2             relating to transportation; increasing motor fuel tax 
  1.3             rates; adjusting passenger automobile depreciation 
  1.4             schedule for taxation purposes and removing maximum on 
  1.5             passenger automobile taxes; creating metropolitan 
  1.6             transportation fund and providing for its allocation; 
  1.7             dedicating portion of sales tax revenues attributable 
  1.8             to certain counties to metropolitan transportation 
  1.9             fund; changing distribution of motor vehicle sales tax 
  1.10            revenues; modifying county state-aid highway fund 
  1.11            distribution formula; authorizing bonding for 
  1.12            transportation purposes; providing for advance 
  1.13            construction funds; appropriating money; amending 
  1.14            Minnesota Statutes 2002, sections 162.07, subdivision 
  1.15            1, by adding subdivisions; 168.013, subdivision 1a; 
  1.16            296A.07, subdivision 3; 296A.08, subdivision 2; 
  1.17            297A.94; 297B.09, subdivision 1; proposing coding for 
  1.18            new law in Minnesota Statutes, chapter 16A. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20     Section 1.  [16A.89] [METROPOLITAN TRANSPORTATION FUND.] 
  1.21     Subdivision 1.  [FUND CREATED.] A metropolitan 
  1.22  transportation fund is created in the state treasury, consisting 
  1.23  of money credited to the fund under section 297A.94, paragraph 
  1.24  (g), and other money credited to the fund by law. 
  1.25     Subd. 2.  [TRANSFER TO GENERAL FUND.] Within ten days of 
  1.26  the end of each fiscal year through fiscal year 2007 the 
  1.27  commissioner shall determine if the amount of sales and use tax 
  1.28  revenue credited in the fund under section 297A.94, paragraph 
  1.29  (g), has been greater in that fiscal year than an amount equal 
  1.30  to 32 percent of revenue from the motor vehicle sales tax in 
  1.31  that fiscal year.  If the first amount is greater than the 
  1.32  second amount, the commissioner shall transfer an amount equal 
  2.1   to the difference from the metropolitan transportation fund to 
  2.2   the general fund. 
  2.3      Subd. 3.  [APPORTIONMENT OF FUND.] Money in the 
  2.4   metropolitan transportation fund not transferred under 
  2.5   subdivision 2 must be allocated as follows: 
  2.6      (a) 37.5 percent must be allocated to a transit ways 
  2.7   account.  Money in the account is appropriated to the 
  2.8   commissioner of transportation for expenditure on planning, 
  2.9   design, engineering, construction, and operation of the 
  2.10  following transit ways: 
  2.11     (1) the northwest busway from downtown Minneapolis to 
  2.12  Rogers; 
  2.13     (2) the Rush line commuter rail line from St. Paul to Rush 
  2.14  City; 
  2.15     (3) the Cedar Avenue busway connecting the Mall of America 
  2.16  in Bloomington with Eagan, Apple Valley, Burnsville, and 
  2.17  Lakeville; 
  2.18     (4) the marked interstate highway 494 busway between the 
  2.19  Mall of America and marked trunk highway 100; and 
  2.20     (5) other projects designated by law for funding from the 
  2.21  transit ways account. 
  2.22  The commissioner may make grants from the account to the 
  2.23  metropolitan council for transit way projects identified in this 
  2.24  subdivision that will be planned, designed, engineered, 
  2.25  constructed, or operated by the council. 
  2.26     (b) 15 percent must be allocated to a transit operations 
  2.27  account.  Money in the account is appropriated as follows: 
  2.28     (1) 80 percent to the metropolitan council for public 
  2.29  transit systems the council operates or assists, including 
  2.30  transit ways; and 
  2.31     (2) 20 percent to the commissioner of transportation for 
  2.32  public transit operating assistance under section 174.24, 
  2.33  subdivision 3b. 
  2.34     (c) 47.5 percent must be allocated to a metropolitan 
  2.35  highway improvement account.  Money in the account is 
  2.36  appropriated to the commissioner of transportation for planning, 
  3.1   design, engineering, and construction of trunk highway projects 
  3.2   that are in (1) the department of transportation metropolitan 
  3.3   division's 20-year transportation system plan, or (2) the 
  3.4   division's project list of unmet needs over 20 years. 
  3.5      Sec. 2.  Minnesota Statutes 2002, section 162.07, 
  3.6   subdivision 1, is amended to read: 
  3.7      Subdivision 1.  [FORMULA.] (a) After deducting for 
  3.8   administrative costs and for the disaster account and research 
  3.9   account and state park roads as heretofore provided in section 
  3.10  162.06, subdivisions 2 through 5, the remainder of the total sum 
  3.11  provided for in section 162.06, subdivision 1, shall be is 
  3.12  identified as the apportionment sum and the excess sum.  shall 
  3.13  be apportioned by the commissioner to the several counties on 
  3.14  the basis of the needs of the counties as determined in 
  3.15  accordance with the following formula: 
  3.16     (a) An amount equal to ten percent of the apportionment sum 
  3.17  shall be apportioned equally among the 87 counties.  
  3.18     (b) An amount equal to ten percent of the apportionment sum 
  3.19  shall be apportioned among the several counties so that each 
  3.20  county shall receive of such amount the percentage that its 
  3.21  motor vehicle registration for the calendar year preceding the 
  3.22  one last past, determined by residence of registrants, bears to 
  3.23  the total statewide motor vehicle registration.  
  3.24     (c) An amount equal to 30 percent of the apportionment sum 
  3.25  shall be apportioned among the several counties so that each 
  3.26  county shall receive of such amount the percentage that its 
  3.27  total lane-miles of approved county state-aid highways bears to 
  3.28  the total lane-miles of approved statewide county state-aid 
  3.29  highways.  In 1997 and subsequent years no county may receive, 
  3.30  as a result of an apportionment under this clause based on 
  3.31  lane-miles rather than miles of approved county state-aid 
  3.32  highways, an apportionment that is less than its apportionment 
  3.33  in 1996. 
  3.34     (d) An amount equal to 50 percent of the apportionment sum 
  3.35  shall be apportioned among the several counties so that each 
  3.36  county shall receive of such amount the percentage that its 
  4.1   money needs bears to the sum of the money needs of all of the 
  4.2   individual counties; provided, that the percentage of such 
  4.3   amount that each county is to receive shall be adjusted so that 
  4.4   each county shall receive in 1958 a total apportionment at least 
  4.5   ten percent greater than its total 1956 apportionments from the 
  4.6   state road and bridge fund; and provided further that those 
  4.7   counties whose money needs are thus adjusted shall never receive 
  4.8   a percentage of the apportionment sum less than the percentage 
  4.9   that such county received in 1958.  
  4.10     (b) For purposes of this section and section 162.07: 
  4.11     (1) the "excess sum" is the money available for 
  4.12  apportionment to the counties that is attributable to (i) motor 
  4.13  fuel tax rates under section 296A.07, subdivision 3, and 
  4.14  296A.08, subdivision 2, that are in excess of the rates for the 
  4.15  taxes under those provisions that were in effect on January 1, 
  4.16  2003, and (ii) changes in passenger automobile taxes under 
  4.17  section 168.013, subdivision 1a; and 
  4.18     (2) the "apportionment sum" is the total sum less the 
  4.19  excess sum. 
  4.20     Sec. 3.  Minnesota Statutes 2002, section 162.07, is 
  4.21  amended by adding a subdivision to read: 
  4.22     Subd. 1a.  [APPORTIONMENT SUM.] The commissioner shall 
  4.23  apportion the apportionment sum to the several counties on the 
  4.24  basis of the needs of the counties as determined in accordance 
  4.25  with the following formula: 
  4.26     (a) An amount equal to ten percent of the apportionment sum 
  4.27  must be apportioned equally among the 87 counties.  
  4.28     (b) An amount equal to ten percent of the apportionment sum 
  4.29  must be apportioned among the several counties so that each 
  4.30  county receives of that amount the percentage that its motor 
  4.31  vehicle registration for the calendar year preceding the one 
  4.32  last past, determined by residence of registrants, bears to the 
  4.33  total statewide motor vehicle registration.  
  4.34     (c) An amount equal to 30 percent of the apportionment sum 
  4.35  must be apportioned among the several counties so that each 
  4.36  county receives of that amount the percentage that its total 
  5.1   lane-miles of approved county state-aid highways bears to the 
  5.2   total lane-miles of approved statewide county state-aid 
  5.3   highways.  In 1997 and subsequent years no county may receive, 
  5.4   as a result of an apportionment under this paragraph based on 
  5.5   lane-miles rather than miles of approved county state-aid 
  5.6   highways, an apportionment that is less than its apportionment 
  5.7   in 1996. 
  5.8      (d) An amount equal to 50 percent of the apportionment sum 
  5.9   must be apportioned among the several counties so that each 
  5.10  county receives of that amount the percentage that its money 
  5.11  needs bears to the sum of the money needs of all of the 
  5.12  individual counties; provided, that the percentage of the amount 
  5.13  that each county is to receive must be adjusted so that each 
  5.14  county receives in 1958 a total apportionment at least ten 
  5.15  percent greater than its total 1956 apportionments from the 
  5.16  state road and bridge fund; and provided further, that those 
  5.17  counties whose money needs are thus adjusted shall never receive 
  5.18  a percentage of the apportionment sum less than the percentage 
  5.19  that such county received in 1958.  
  5.20     Sec. 4.  Minnesota Statutes 2002, section 162.07, is 
  5.21  amended by adding a subdivision to read: 
  5.22     Subd. 1b.  [EXCESS SUM.] The commissioner shall apportion 
  5.23  the excess sum to the several counties on the basis of the needs 
  5.24  of the counties as determined in accordance with the following 
  5.25  formula: 
  5.26     (a) An amount equal to 50 percent of the excess sum must be 
  5.27  apportioned among the several counties so that each county 
  5.28  receives of that amount the percentage that its population bears 
  5.29  to the total population of the state. 
  5.30     (b) An amount equal to 50 percent of the excess sum must be 
  5.31  apportioned among the several counties so that each county 
  5.32  receives of that amount the percentage that its money needs 
  5.33  bears to the sum of the money needs of all of the individual 
  5.34  counties. 
  5.35     Sec. 5.  Minnesota Statutes 2002, section 168.013, 
  5.36  subdivision 1a, is amended to read: 
  6.1      Subd. 1a.  [PASSENGER AUTOMOBILE; HEARSE.] (a) On passenger 
  6.2   automobiles as defined in section 168.011, subdivision 7, and 
  6.3   hearses, except as otherwise provided, the tax shall be $10 plus 
  6.4   an additional tax equal to 1.25 percent of the base value.  
  6.5      (b) Subject to the classification provisions herein, "base 
  6.6   value" means the manufacturer's suggested retail price of the 
  6.7   vehicle including destination charge using list price 
  6.8   information published by the manufacturer or determined by the 
  6.9   registrar if no suggested retail price exists, and shall not 
  6.10  include the cost of each accessory or item of optional equipment 
  6.11  separately added to the vehicle and the suggested retail price. 
  6.12     (c) If the manufacturer's list price information contains a 
  6.13  single vehicle identification number followed by various 
  6.14  descriptions and suggested retail prices, the registrar shall 
  6.15  select from those listings only the lowest price for determining 
  6.16  base value. 
  6.17     (d) If unable to determine the base value because the 
  6.18  vehicle is specially constructed, or for any other reason, the 
  6.19  registrar may establish such value upon the cost price to the 
  6.20  purchaser or owner as evidenced by a certificate of cost but not 
  6.21  including Minnesota sales or use tax or any local sales or other 
  6.22  local tax. 
  6.23     (e) The registrar shall classify every vehicle in its 
  6.24  proper base value class as follows: 
  6.25                        FROM                   TO
  6.26                        $  0                $199.99
  6.27                         200                 399.99
  6.28  and thereafter a series of classes successively set in brackets 
  6.29  having a spread of $200 consisting of such number of classes as 
  6.30  will permit classification of all vehicles. 
  6.31     (f) The base value for purposes of this section shall be 
  6.32  the middle point between the extremes of its class. 
  6.33     (g) The registrar shall establish the base value, when new, 
  6.34  of every passenger automobile and hearse registered prior to the 
  6.35  effective date of Extra Session Laws 1971, chapter 31, using 
  6.36  list price information published by the manufacturer or any 
  7.1   nationally recognized firm or association compiling such data 
  7.2   for the automotive industry.  If unable to ascertain the base 
  7.3   value of any registered vehicle in the foregoing manner, the 
  7.4   registrar may use any other available source or method.  The 
  7.5   registrar shall calculate tax using base value information 
  7.6   available to dealers and deputy registrars at the time the 
  7.7   application for registration is submitted.  The tax on all 
  7.8   previously registered vehicles shall be computed upon the base 
  7.9   value thus determined taking into account the depreciation 
  7.10  provisions of paragraph (h). 
  7.11     (h) The annual additional tax computed upon the base value 
  7.12  as provided herein, during the first and second years year of 
  7.13  vehicle life shall be computed upon 100 percent of the base 
  7.14  value; for the second year, 90 percent of such value; for the 
  7.15  third and fourth years, 90 year, 80 percent of such value; for 
  7.16  the fourth year, 70 percent of such value; for the fifth and 
  7.17  sixth years, 75 year, 60 percent of such value; for the sixth 
  7.18  year, 50 percent of such value; for the seventh year, 60 40 
  7.19  percent of such value; for the eighth year, 40 30 percent of 
  7.20  such value; for the ninth year, 30 20 percent of such value; for 
  7.21  the tenth year, ten percent of such value; for the 11th and each 
  7.22  succeeding year, the sum of $25.  In no event shall the annual 
  7.23  additional tax be less than $25.  The total tax under this 
  7.24  subdivision shall not exceed $189 for the first renewal period 
  7.25  and shall not exceed $99 for subsequent renewal periods.  The 
  7.26  total tax under this subdivision on any vehicle filing its 
  7.27  initial registration in Minnesota in the second year of vehicle 
  7.28  life shall not exceed $189 and shall not exceed $99 for 
  7.29  subsequent renewal periods.  The total tax under this 
  7.30  subdivision on any vehicle filing its initial registration in 
  7.31  Minnesota in the third or subsequent year of vehicle life shall 
  7.32  not exceed $99 and shall not exceed $99 in any subsequent 
  7.33  renewal period. 
  7.34     (i) As used in this subdivision and section 168.017, the 
  7.35  following terms have the meanings given:  "initial registration" 
  7.36  means the 12 consecutive months calendar period from the day of 
  8.1   first registration of a vehicle in Minnesota; and "renewal 
  8.2   periods" means the 12 consecutive calendar months periods 
  8.3   following the initial registration period.  Notwithstanding any 
  8.4   other provision of this subdivision, the additional tax on any 
  8.5   passenger automobile registered on and after July 1, 2003, may 
  8.6   not exceed the additional tax on that passenger automobile in 
  8.7   its last full registration period. 
  8.8      Sec. 6.  Minnesota Statutes 2002, section 296A.07, 
  8.9   subdivision 3, is amended to read: 
  8.10     Subd. 3.  [RATE OF TAX.] The gasoline excise tax is imposed 
  8.11  at the following rates: 
  8.12     (1) E85 is taxed at the rate of 14.2 17.75 cents per 
  8.13  gallon; 
  8.14     (2) M85 is taxed at the rate of 11.4 14.25 cents per 
  8.15  gallon; and 
  8.16     (3) all other gasoline is taxed at the rate of 20 25 cents 
  8.17  per gallon. 
  8.18     Sec. 7.  Minnesota Statutes 2002, section 296A.08, 
  8.19  subdivision 2, is amended to read: 
  8.20     Subd. 2.  [RATE OF TAX.] The special fuel excise tax is 
  8.21  imposed at the following rates: 
  8.22     (1) Liquefied petroleum gas or propane is taxed at the rate 
  8.23  of 15 18.75 cents per gallon. 
  8.24     (2) Liquefied natural gas is taxed at the rate of 12 15 
  8.25  cents per gallon. 
  8.26     (3) Compressed natural gas is taxed at the rate of $1.739 
  8.27  $2.174 per thousand cubic feet; or 20 25 cents per gasoline 
  8.28  equivalent, as defined by the National Conference on Weights and 
  8.29  Measures, which is 5.66 pounds of natural gas. 
  8.30     (4) All other special fuel is taxed at the same rate as the 
  8.31  gasoline excise tax as specified in section 296A.07, subdivision 
  8.32  2.  The tax is payable in the form and manner prescribed by the 
  8.33  commissioner. 
  8.34     Sec. 8.  Minnesota Statutes 2002, section 297A.94, is 
  8.35  amended to read: 
  8.36     297A.94 [DEPOSIT OF REVENUES.] 
  9.1      (a) Except as provided in this section, the commissioner 
  9.2   shall deposit the revenues, including interest and penalties, 
  9.3   derived from the taxes imposed by this chapter in the state 
  9.4   treasury and credit them to the general fund.  
  9.5      (b) The commissioner shall deposit taxes in the Minnesota 
  9.6   agricultural and economic account in the special revenue fund if:
  9.7      (1) the taxes are derived from sales and use of property 
  9.8   and services purchased for the construction and operation of an 
  9.9   agricultural resource project; and 
  9.10     (2) the purchase was made on or after the date on which a 
  9.11  conditional commitment was made for a loan guaranty for the 
  9.12  project under section 41A.04, subdivision 3. 
  9.13  The commissioner of finance shall certify to the commissioner 
  9.14  the date on which the project received the conditional 
  9.15  commitment.  The amount deposited in the loan guaranty account 
  9.16  must be reduced by any refunds and by the costs incurred by the 
  9.17  department of revenue to administer and enforce the assessment 
  9.18  and collection of the taxes.  
  9.19     (c) The commissioner shall deposit the revenues, including 
  9.20  interest and penalties, derived from the taxes imposed on sales 
  9.21  and purchases included in section 297A.61, subdivision 3, 
  9.22  paragraph (g), clauses (1) and (4), in the state treasury, and 
  9.23  credit them as follows: 
  9.24     (1) first to the general obligation special tax bond debt 
  9.25  service account in each fiscal year the amount required by 
  9.26  section 16A.661, subdivision 3, paragraph (b); and 
  9.27     (2) after the requirements of clause (1) have been met, the 
  9.28  balance to the general fund. 
  9.29     (d) The commissioner shall deposit the revenues, including 
  9.30  interest and penalties, collected under section 297A.64, 
  9.31  subdivision 5, in the state treasury and credit them to the 
  9.32  general fund.  By July 15 of each year the commissioner shall 
  9.33  transfer to the highway user tax distribution fund an amount 
  9.34  equal to the excess fees collected under section 297A.64, 
  9.35  subdivision 5, for the previous calendar year. 
  9.36     (e) For fiscal year 2001, 97 percent; for fiscal years 2002 
 10.1   and 2003, 87 percent; and for fiscal year 2004 and thereafter, 
 10.2   87.1 percent of the revenues, including interest and penalties, 
 10.3   transmitted to the commissioner under section 297A.65, must be 
 10.4   deposited by the commissioner in the state treasury as follows: 
 10.5      (1) 50 percent of the receipts must be deposited in the 
 10.6   heritage enhancement account in the game and fish fund, and may 
 10.7   be spent only on activities that improve, enhance, or protect 
 10.8   fish and wildlife resources, including conservation, 
 10.9   restoration, and enhancement of land, water, and other natural 
 10.10  resources of the state; 
 10.11     (2) 22.5 percent of the receipts must be deposited in the 
 10.12  natural resources fund, and may be spent only for state parks 
 10.13  and trails; 
 10.14     (3) 22.5 percent of the receipts must be deposited in the 
 10.15  natural resources fund, and may be spent only on metropolitan 
 10.16  park and trail grants; 
 10.17     (4) three percent of the receipts must be deposited in the 
 10.18  natural resources fund, and may be spent only on local trail 
 10.19  grants; and 
 10.20     (5) two percent of the receipts must be deposited in the 
 10.21  natural resources fund, and may be spent only for the Minnesota 
 10.22  zoological garden, the Como park zoo and conservatory, and the 
 10.23  Duluth zoo. 
 10.24     (f) The revenue dedicated under paragraph (e) may not be 
 10.25  used as a substitute for traditional sources of funding for the 
 10.26  purposes specified, but the dedicated revenue shall supplement 
 10.27  traditional sources of funding for those purposes.  Land 
 10.28  acquired with money deposited in the game and fish fund under 
 10.29  paragraph (e) must be open to public hunting and fishing during 
 10.30  the open season, except that in aquatic management areas or on 
 10.31  lands where angling easements have been acquired, fishing may be 
 10.32  prohibited during certain times of the year and hunting may be 
 10.33  prohibited.  At least 87 percent of the money deposited in the 
 10.34  game and fish fund for improvement, enhancement, or protection 
 10.35  of fish and wildlife resources under paragraph (e) must be 
 10.36  allocated for field operations. 
 11.1      (g) The commissioner shall deposit 7.7 percent of the 
 11.2   revenues from taxes imposed under sections 297A.61 to 297A.93 
 11.3   that the commissioner determines are derived from sales and use 
 11.4   in the counties of Anoka, Carver, Chisago, Dakota, Hennepin, 
 11.5   Ramsey, Scott, and Washington into the metropolitan 
 11.6   transportation fund created in section 16A.89. 
 11.7      Sec. 9.  Minnesota Statutes 2002, section 297B.09, 
 11.8   subdivision 1, is amended to read: 
 11.9      Subdivision 1.  [DEPOSIT OF REVENUES.] (a) Money collected 
 11.10  and received under this chapter must be deposited as provided in 
 11.11  this subdivision.  
 11.12     (b) From July 1, 2001, to June 30, 2002, 30.86 percent of 
 11.13  the money collected and received must be deposited in the 
 11.14  highway user tax distribution fund, and the remaining money must 
 11.15  be deposited in the general fund.  
 11.16     (c) On and after July 1, 2002 2003, 32 percent of the money 
 11.17  collected and received must be deposited in the highway user tax 
 11.18  distribution fund, 20.5 percent must be deposited in the 
 11.19  metropolitan area transit fund under section 16A.88, and 1.25 
 11.20  percent must be deposited in the greater Minnesota transit fund 
 11.21  under section 16A.88.  
 11.22     (c) In fiscal year 2004 and thereafter, two percent of the 
 11.23  money collected and received must be deposited in the 
 11.24  metropolitan area transit appropriation account under section 
 11.25  16A.88.  The remaining money must be deposited in the general 
 11.26  fund. 
 11.27     (d) On and after July 1, 2007, 32 percent of the money 
 11.28  collected and received must be deposited in the highway user tax 
 11.29  distribution fund. 
 11.30     (e) On and after July 1, 2010, 76.25 percent of the money 
 11.31  collected and received must be deposited in the highway user 
 11.32  fund. 
 11.33     Sec. 10.  [APPROPRIATION.] 
 11.34     (a) $550,000,000 is appropriated to the commissioner of 
 11.35  transportation from the bond proceeds account in the trunk 
 11.36  highway fund for the actual construction, reconstruction, and 
 12.1   improvement of trunk highways.  Of this appropriation: 
 12.2      (1) $250,000,000 is for trunk highway improvements within 
 12.3   the seven-county metropolitan area primarily for improving 
 12.4   traffic flow and expanding highway capacity by eliminating 
 12.5   traffic bottlenecks and improving segments of at-risk 
 12.6   interregional corridors within the seven-county metropolitan 
 12.7   area; 
 12.8      (2) $250,000,000 is for trunk highway improvements on 
 12.9   high-risk interregional corridors located outside the 
 12.10  seven-county metropolitan area; and 
 12.11     (3) $50,000,000 is for accelerating transit capital 
 12.12  improvements on trunk highways such as shoulder bus lanes, bus 
 12.13  park-and-ride facilities, and ramp meter bypass facilities. 
 12.14     (b) The commissioner may use up to $93,500,000 of this 
 12.15  appropriation for program delivery. 
 12.16     (c) These appropriations include the cost of actual payment 
 12.17  to landowners for lands acquired for highway right-of-way, 
 12.18  payment to lessees, interest subsidies, and relocation expenses. 
 12.19     Sec. 11.  [BOND SALE EXPENSES.] 
 12.20     $550,000 is appropriated to the commissioner of finance for 
 12.21  bond sale expenses under Minnesota Statutes, section 16A.641, 
 12.22  subdivision 8.  This appropriation is from the trunk highway 
 12.23  bond proceeds account in the trunk highway fund. 
 12.24     Sec. 12.  [BOND SALE.] 
 12.25     To provide the money appropriated in sections 10 and 11, 
 12.26  from the bond proceeds account in the trunk highway fund, the 
 12.27  commissioner of finance shall sell and issue bonds of the state 
 12.28  in an amount up to $550,550,000 in the manner, on the terms, and 
 12.29  with the effect prescribed by Minnesota Statutes, sections 
 12.30  167.50 to 167.52, and by the Minnesota Constitution, article 
 12.31  XIV, section 11, at the times and in the amounts requested by 
 12.32  the commissioner of transportation.  The proceeds of the bonds, 
 12.33  except accrued interest and any premium received from the sale 
 12.34  of the bonds, must be deposited in the bond proceeds account in 
 12.35  the trunk highway fund. 
 12.36     Sec. 13.  [ADVANCE CONSTRUCTION.] 
 13.1      (a) Through June 30, 2009, the commissioner of 
 13.2   transportation may spend up to $550,000 on trunk highway 
 13.3   improvements from funds approved for expenditure by the Federal 
 13.4   Highway Administration and designated as advance construction 
 13.5   funds. 
 13.6      (b) Any additional advance construction expenditures by the 
 13.7   commissioner approved by the Federal Highway Administration 
 13.8   through June 30, 2009, may be added to the amount in paragraph 
 13.9   (a). 
 13.10     Sec. 14.  [EFFECTIVE DATE.] 
 13.11     Sections 1 to 5, 8, and 9 are effective July 1, 2003.  
 13.12  Sections 6 and 7 are effective June 1, 2003, and section 6 
 13.13  applies to all gasoline in distributor storage on that date.  
 13.14  Sections 10 to 13 are effective the day following final 
 13.15  enactment.