HF 2108

as introduced - 89th Legislature (2015 - 2016) Posted on 03/25/2015 10:52am

A bill for an act
relating to transportation; providing for financing of transportation; making
appropriations; establishing certain transportation aids; authorizing sale and
issuance of state bonds; amending Minnesota Statutes 2014, sections 97A.055,
subdivision 2; 161.088, by adding a subdivision; 297A.94; proposing coding for
new law in Minnesota Statutes, chapter 162.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin TRANSPORTATION APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Corridors of commerce. new text end

new text begin The amount available in the corridors of
commerce account under Minnesota Statutes, section 161.088, in fiscal year 2016 and
fiscal year 2017 is appropriated from the account to the commissioner of transportation
for the corridors of commerce program under that section.
new text end

new text begin Subd. 2. new text end

new text begin Small cities transportation aid. new text end

new text begin The amount available in the small
cities transportation aid account under Minnesota Statutes, section 162.145, in fiscal
year 2016 and fiscal year 2017 is appropriated from the account to the commissioner of
transportation for transportation assistance under that section.
new text end

new text begin Subd. 3. new text end

new text begin MSAS cities transportation aid. new text end

new text begin The amount available in the MSAS
cities transportation aid account under Minnesota Statutes, section 162.145, in fiscal
year 2016 and fiscal year 2017 is appropriated from the account to the commissioner of
transportation for transportation assistance under that section.
new text end

ARTICLE 2

TRANSPORTATION BONDING

Section 1. new text begin BOND APPROPRIATIONS.
new text end

new text begin The sums shown in the column under "Appropriations" are appropriated from
the bond proceeds account in the trunk highway fund, or another named fund, to the
state agencies or officials indicated, to be spent for public purposes. Appropriations of
bond proceeds must be spent as authorized by the Minnesota Constitution, article XI,
section 5, paragraph (a), to acquire and better public land and buildings and other public
improvements of a capital nature, or as authorized by the Minnesota Constitution, article
XI, section 5, paragraphs (b) to (j), or article XIV. Unless otherwise specified, money
appropriated in this article for a capital program or project may be used to pay state agency
staff costs that are attributed directly to the capital program or project in accordance with
accounting policies adopted by the commissioner of management and budget.
new text end

new text begin SUMMARY new text end
new text begin Department of Transportation new text end	new text begin $ new text end	new text begin 2,000,000,000 new text end
new text begin Department of Management and Budget new text end		new text begin 2,000,000 new text end
new text begin TOTAL new text end	new text begin $ new text end	new text begin 2,002,000,000 new text end

new text begin APPROPRIATIONS new text end

Sec. 2. new text begin DEPARTMENT OF TRANSPORTATION new text end

new text begin $ new text end

new text begin 2,000,000,000 new text end

new text begin This appropriation is to the commissioner of
transportation for the corridors of commerce
program under Minnesota Statutes, section
161.088, and is available in the amount of
$200,000,000 in each year for fiscal years
2016 through 2025.
new text end

new text begin The commissioner may use up to 17 percent
of the amount each year for program delivery.
new text end

new text begin In any fiscal year covered by this
appropriation, the commissioner may
identify projects based on previous selection
processes under the program or may perform
a new selection.
new text end

new text begin The appropriations in this section cancel as
specified under Minnesota Statutes, section
16A.642, except that the commissioner of
management and budget shall count the start
of authorization for issuance of state bonds
as the first day of the fiscal year during
which the bonds are available to be issued as
specified in each subdivision and not as the
date of enactment of this section.
new text end

Sec. 3. new text begin BOND SALE EXPENSES new text end

new text begin $ new text end

new text begin 2,000,000 new text end

new text begin This appropriation is to the commissioner
of management and budget for bond
sale expenses under Minnesota Statutes,
sections 16A.641, subdivision 8, and 167.50,
subdivision 4, and is effective through 2027.
new text end

Sec. 4. new text begin BOND SALE AUTHORIZATION.
new text end

new text begin To provide the money appropriated in this article from the bond proceeds account in
the trunk highway fund, the commissioner of management and budget shall sell and issue
bonds of the state in an amount up to $2,002,000,000 in the manner, upon the terms, and
with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the
Minnesota Constitution, article XIV, section 11, at the times and in the amounts requested
by the commissioner of transportation. The proceeds of the bonds, except accrued interest
and any premium received from the sale of the bonds, must be deposited in the bond
proceeds account in the trunk highway fund.
new text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective July 1, 2015.
new text end

ARTICLE 3

SALES TAXES

Section 1.

Minnesota Statutes 2014, section 97A.055, subdivision 2, is amended to read:

Subd. 2.

Receipts.

The commissioner of management and budget shall credit to the
game and fish fund all money received under the game and fish laws and all income from
state lands acquired by purchase or gift for game or fish purposes, including receipts from:

(1) licenses and permits issued;

(2) fines and forfeited bail;

(3) sales of contraband, wild animals, and other property under the control of the
division;

(4) fees from advanced education courses for hunters and trappers;

(5) reimbursements of expenditures by the division;

(6) contributions to the division; and

(7) revenue credited to the game and fish fund under section 297A.94, paragraph
deleted text begin (e) deleted text end new text begin (h) new text end , clause (1).

Sec. 2.

Minnesota Statutes 2014, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for
the construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment
was made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of management and budget shall certify to the commissioner the date
on which the project received the conditional commitment. The amount deposited in
the loan guaranty account must be reduced by any refunds and by the costs incurred by
the Department of Revenue to administer and enforce the assessment and collection of
the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties,
derived from the taxes imposed on sales and purchases included in section 297A.61,
subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them
as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) new text begin The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 1, in the state treasury and credit them to the
general fund. By July 15 of each year, the commissioner shall transfer from the general
fund to the MSAS cities transportation aid account under section 162.145 an amount equal
to the revenues collected under this paragraph for the previous calendar year.
new text end

new text begin (e) new text end The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5, for the previous calendar year.

new text begin (f) By July 15 of each year, the commissioner shall transfer from the general fund to
the small cities transportation aid account under section 162.145 an amount equal to the
estimated revenues, including interest and penalties, collected under the tax rate imposed
under section 297A.62, subdivision 1, on the sale or purchase of rental motor vehicles
subject to section 297A.64 during the previous calendar year. The commissioner shall
estimate the amount of total sales tax revenues transferred under this paragraph based on
the amount of revenue deposited in paragraph (d).
new text end

new text begin (g) By July 15, 2015, the commissioner shall transfer $238,900,000 from the general
fund to the corridors of commerce account in the trunk highway fund under section
161.088, as the estimated amount of taxes collected from the sale and purchase of motor
vehicle parts in calendar year 2014. By July 15 of each subsequent year, the commissioner
shall transfer from the general fund to the corridors of commerce account in the trunk
highway fund an amount equal to the estimated revenues, including interest and penalties,
collected in tax from the sale or purchase of motor vehicle repair and replacement parts.
Beginning June 30, 2016, and by June 30 of every fourth year thereafter, the commissioner
will estimate the percentage of total sales tax revenues collected in the previous calendar
year that is attributable to sales and purchases of motor vehicle parts based on federal data
and department consumption models. The amount of sales tax revenue to be transferred
to the corridors of commerce account on each July 15 is equal to the most recently
calculated percentage estimate under this paragraph multiplied by the total sales tax
revenues collected in the previous calendar year. For purposes of this paragraph, "motor
vehicle" has the meaning given in section 297B.01, subdivision 11, and "motor vehicle
repair and replacement parts" includes:
new text end

new text begin (1) all parts, tires, accessories, and equipment incorporated into or affixed to the
motor vehicle as part of the motor vehicle maintenance or repair; and
new text end

new text begin (2) paint, oil, and other fluids that remain on or in the motor vehicle as part of the
motor vehicle maintenance or repair.
new text end

deleted text begin (e) deleted text end new text begin (h) new text end 72.43 percent of the revenues, including interest and penalties, transmitted
to the commissioner under section 297A.65, must be deposited by the commissioner
in the state treasury as follows:

(1) 50 percent of the receipts must be deposited in the heritage enhancement account
in the game and fish fund, and may be spent only on activities that improve, enhance, or
protect fish and wildlife resources, including conservation, restoration, and enhancement
of land, water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and
may be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and
may be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants; and

(5) two percent of the receipts must be deposited in the natural resources fund,
and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and
Conservatory, and the Duluth Zoo.

deleted text begin (f) deleted text end new text begin (i) new text end The revenue dedicated under paragraph deleted text begin (e) deleted text end new text begin (h) new text end may not be used as a substitute
for traditional sources of funding for the purposes specified, but the dedicated revenue
shall supplement traditional sources of funding for those purposes. Land acquired with
money deposited in the game and fish fund under paragraph deleted text begin (e) deleted text end new text begin (h) new text end must be open to public
hunting and fishing during the open season, except that in aquatic management areas or
on lands where angling easements have been acquired, fishing may be prohibited during
certain times of the year and hunting may be prohibited. At least 87 percent of the money
deposited in the game and fish fund for improvement, enhancement, or protection of fish
and wildlife resources under paragraph deleted text begin (e) deleted text end new text begin (h) new text end must be allocated for field operations.

deleted text begin (g) deleted text end new text begin (j) new text end The revenues deposited under paragraphs (a) to deleted text begin (f) deleted text end new text begin (i) new text end do not include the
revenues, including interest and penalties, generated by the sales tax imposed under
section 297A.62, subdivision 1a, which must be deposited as provided under the
Minnesota Constitution, article XI, section 15.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015, and applies for revenues
collected in fiscal year 2015 and thereafter.
new text end

ARTICLE 4

TRANSPORTATION FINANCE

Section 1.

Minnesota Statutes 2014, section 161.088, is amended by adding a
subdivision to read:

new text begin Subd. 2a. new text end

new text begin Corridors of commerce account. new text end

new text begin (a) A corridors of commerce account
is established in the trunk highway fund. The account consists of funds as provided
under section 297A.94, and any other money donated, allotted, transferred, or otherwise
provided to the account. Money in the account may only be expended on a trunk highway
project as provided under this section.
new text end

new text begin (b) Of any appropriation by law from this account, funds must first be used for debt
service on bonds issued under article 2 for the program under this section.
new text end

Sec. 2.

new text begin [162.145] CITY TRANSPORTATION AIDS.
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 them.
new text end

new text begin (b) "Adjusted road miles" means the lesser of:
new text end

new text begin (1) 30; or
new text end

new text begin (2) the centerline miles of a city's municipal streets.
new text end

new text begin (c) "Minimum small city aid" means the lesser of:
new text end

new text begin (1) 2,500; or
new text end

new text begin (2) the total amount available under the small cities transportation account in a
fiscal year, multiplied by 0.000125.
new text end

new text begin (d) "Minimum MSAS city aid" means the lesser of:
new text end

new text begin (1) 60,000; or
new text end

new text begin (2) the total amount available under the MSAS cities transportation account in a
fiscal year, multiplied by 0.00263.
new text end

new text begin (e) "MSAS city" means a statutory or home rule charter city that receives municipal
state aid under sections 162.09 to 162.14 in the calendar year in which funds are
distributed under this section.
new text end

new text begin (f) "Per capita maximum" means 40 multiplied by the population of a city.
new text end

new text begin (g) "Population" means the population estimated or established as of 30 days before
the date of an allocation under subdivision 4 by the most recent date, based on the stated
date of the count or estimate, of:
new text end

new text begin (1) the most recent federal census;
new text end

new text begin (2) a special census conducted under contract with the United States Bureau of
the Census;
new text end

new text begin (3) a population estimate made by the Metropolitan Council pursuant to section
473.24; or
new text end

new text begin (4) a population estimate of the state demographer made pursuant to section 4A.02.
new text end

new text begin (h) "Small city" means a statutory or home rule charter city that does not receive
municipal state aid under sections 162.09 to 162.14 in the calendar year in which funds
are distributed under this section.
new text end

new text begin Subd. 2. new text end

new text begin Transportation aid accounts. new text end

new text begin (a) A small cities transportation aid account
is created in the special revenue fund. The account consists of funds as provided under
section 297A.94, and any other money donated, allotted, transferred, or otherwise provided
to the account. Money in the account may only be expended as provided under this section.
new text end

new text begin (b) A MSAS cities transportation aid account is created in the special revenue fund.
The account consists of funds as provided under section 297A.94, and any other money
donated, allotted, transferred, or otherwise provided to the account. Money in the account
may only be expended as provided under this section.
new text end

new text begin Subd. 3. new text end

new text begin Administration. new text end

new text begin Subject to funds made available by law specifically
under this section, the commissioner shall allocate all funds in a fiscal year as provided
in subdivision 4 or 5, and shall make payments to cities in two installments on July 20
and December 26.
new text end

new text begin Subd. 4. new text end

new text begin Distribution formula; small cities. new text end

new text begin (a) In each year funds are available
under this section for small cities, the commissioner shall allocate to each small city
an amount that is equal to the greater of:
new text end

new text begin (1) the minimum small city aid; or
new text end

new text begin (2) the lesser of:
new text end

new text begin (i) an aid factor, multiplied by the city's adjusted road miles; or
new text end

new text begin (ii) the per capita maximum.
new text end

new text begin (b) The commissioner shall set the aid factor, which must be the same for all small
cities, so that the total funds allocated under this subdivision equals the total amount
available in the small cities transportation account for the fiscal year.
new text end

new text begin Subd. 5. new text end

new text begin Distribution formula; MSAS cities. new text end

new text begin (a) In each year funds are available
under this section for MSAS cities, the commissioner shall allocate to each MSAS city
an amount that is equal to the greater of:
new text end

new text begin (1) the minimum MSAS city aid; or
new text end

new text begin (2) the lesser of:
new text end

new text begin (i) an aid factor, multiplied by the centerline miles of the city's municipal streets; or
new text end

new text begin (ii) the per capita maximum.
new text end

new text begin (b) The commissioner shall set the aid factor, which must be the same for all MSAS
cities, so that the total funds allocated under this subdivision equals the total amount
available in the MSAS cities transportation account for the fiscal year.
new text end

new text begin Subd. 6. new text end

new text begin Use of funds. new text end

new text begin (a) Funds distributed under this section are available only for
construction and maintenance of roads located within the city, including:
new text end

new text begin (1) land acquisition, environmental analysis, design, engineering, construction,
reconstruction, and maintenance;
new text end

new text begin (2) road projects partially located within the city;
new text end

new text begin (3) projects on county state-aid highways located within the city; and
new text end

new text begin (4) cost participation on road projects under the jurisdiction of another unit of
government.
new text end

new text begin (b) Funds distributed under this section to MSAS cities are not available for roads on
the municipal state-aid street system under this chapter.
new text end

new text begin (c) Funds distributed under this section are not subject to state aid requirements
under this chapter, including but not limited to engineering standards under rules adopted
by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end