HF 2142

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/11/2021 02:45pm

A bill for an act
relating to transportation; providing for highway funding; making appropriations;
authorizing sale and issuance of state bonds; adjusting distribution of tax revenue
from the sale of motor vehicle repair and replacement parts; amending Minnesota
Statutes 2020, section 297A.94.

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

ARTICLE 1

TRANSPORTATION APPROPRIATIONS

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

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
for the purposes specified in this article. The appropriations are from the trunk highway
fund, or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2022" and "2023" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2022, and June 30, 2023, respectively.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2022 new text end		new text begin 2023 new text end

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

new text begin Subdivision 1. new text end new text begin Appropriations new text end

new text begin The appropriations in this section are to the
commissioner of transportation. The amounts
that may be spent for each purpose are
specified in the following subdivisions.
new text end

new text begin Subd. 2. new text end new text begin State Roads new text end

new text begin The appropriations in this subdivision are
attributed to the unreserved fund balance in
the trunk highway fund, are in addition to any
other appropriation enacted in the 2021 regular
legislative session for these purposes, and are
onetime appropriations.
new text end

new text begin (a) Operations and Maintenance new text end

new text begin 22,843,000 new text end

new text begin 25,752,000 new text end

new text begin (b) Program Delivery new text end

new text begin 14,357,000 new text end

new text begin 16,185,000 new text end

new text begin This appropriation includes use of consultants
to support development and management of
projects.
new text end

new text begin (c) State Road Construction new text end

new text begin 64,056,000 new text end

new text begin 72,215,000 new text end

new text begin This appropriation is for the actual
construction, reconstruction, and improvement
of trunk highways, including design-build
contracts, internal department costs associated
with delivering the construction program,
consultant usage to support these activities,
and the cost of actual payments to landowners
for lands acquired for highway rights-of-way,
payment to lessees, interest subsidies, and
relocation expenses.
new text end

new text begin Subd. 3. new text end new text begin Local Roads new text end

new text begin (a) Small Cities Assistance new text end

new text begin 10,000,000 new text end

new text begin -0- new text end

new text begin This appropriation is from the general fund
for the small cities assistance program in
Minnesota Statutes, section 162.145.
new text end

new text begin (b) Town Roads new text end

new text begin 3,250,000 new text end

new text begin -0- new text end

new text begin This appropriation is from the general fund
for town roads, for distribution of financial
assistance in the manner provided under
Minnesota Statutes, section 162.081.
new text end

new text begin (c) Town Bridges new text end

new text begin 1,750,000 new text end

new text begin -0- new text end

new text begin This appropriation is from the general fund
for town bridges, for distribution of financial
assistance in the manner provided under
Minnesota Statutes, section 161.082,
subdivision 2a.
new text end

ARTICLE 2

TRUNK HIGHWAY BONDS

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 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, articles XI and 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 400,000,000 new text end
new text begin Department of Management and Budget new text end		new text begin 400,000 new text end
new text begin TOTAL new text end	new text begin $ new text end	new text begin 400,400,000 new text end

new text begin APPROPRIATIONS new text end

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

new text begin Subdivision 1. new text end new text begin Corridors of Commerce new text end

new text begin $ new text end

new text begin 150,000,000 new text end

new text begin (a) This appropriation is to the commissioner
of transportation for the corridors of commerce
program under Minnesota Statutes, section
161.088.
new text end

new text begin (b) The commissioner may use up to 17
percent of the amount for program delivery.
new text end

new text begin Subd. 2. new text end new text begin State Road Construction new text end

new text begin 250,000,000 new text end

new text begin (a) This appropriation is to the commissioner
of transportation for construction,
reconstruction, and improvement of trunk
highways, including design-build contracts
and use of consultants to support these
activities. This includes the cost of actual
payment to landowners for lands acquired for
highway rights-of-way, payment to lessees,
interest subsidies, and relocation expenses.
new text end

new text begin (b) The commissioner may use up to 17
percent of the amount for program delivery.
new text end

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

new text begin $ new text end

new text begin 400,000 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.
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 $400,400,000 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

ARTICLE 3

TRANSPORTATION FINANCE

Section 1.

Minnesota Statutes 2020, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, "motor vehicle repair and
replacement parts" includes: (1) all parts, tires, accessories, and equipment incorporated
into or affixed to the motor vehicle as part of the motor vehicle maintenance and repair;
and (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

new text begin (b) For purposes of paragraph (a), "motor vehicle" has the meaning given in section
297B.01, subdivision 11; and "tire" means any tire of the type used on highway vehicles,
if wholly or partially made of rubber and if marked according to federal regulations for
highway use.
new text end

new text begin Subd. 2. new text end

new text begin Deposits. new text end

(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) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
in the state treasury the revenues collected under section 297A.64, subdivision 1, including
interest and penalties and minus refunds, and credit them to the highway user tax distribution
fund.

(e) 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.

(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit
of revenues under paragraph (d), the commissioner shall deposit into the state treasury and
credit to the highway user tax distribution fund an amount equal to the estimated revenues
derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or
rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The
commissioner shall estimate the amount of sales tax revenue deposited under this paragraph
based on the amount of revenue deposited under paragraph (d).

(g) deleted text begin Starting after July 1, 2017, deleted text end The commissioner shall deposit deleted text begin an amount of the
remittances deleted text end monthly into the state treasury deleted text begin and credit them to the highway user tax
distribution fund as a portion of deleted text end the estimated deleted text begin amount of deleted text end taxes collected from the sale and
purchase of motor vehicle repair new text begin and replacement new text end parts in that month new text begin , and credit:
new text end

new text begin (1) 54 percent to the highway user tax distribution fund;
new text end

new text begin (2) three percent to the small cities assistance account under section 162.145, subdivision
2;
new text end

new text begin (3) two percent to the town road account in the county state-aid highway fund under
section 162.081; and
new text end

new text begin (4) one percent to the town bridge account in the county state-aid highway fund under
section 161.081 new text end .

deleted text begin For the remittances Between July 1, 2017, and June 30, 2019, the monthly deposit amount
is $2,628,000. For remittances In each subsequent fiscal year, the monthly deposit amount
is $12,137,000. 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
(i) all parts, tires, accessories, and equipment incorporated into or affixed to the motor
vehicle as part of the motor vehicle maintenance and repair, and (ii) paint, oil, and other
fluids that remain on or in the motor vehicle as part of the motor vehicle maintenance or
repair. For purposes of this paragraph, "tire" means any tire of the type used on highway
vehicles, if wholly or partially made of rubber and if marked according to federal regulations
for highway use.
deleted text end

(h) 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.

(i) The revenue dedicated under paragraph (h) 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 (h) 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 (h) must be allocated for field operations.

(j) The commissioner must deposit the revenues, including interest and penalties minus
any refunds, derived from the sale of items regulated under section 624.20, subdivision 1,
that may be sold to persons 18 years old or older and that are not prohibited from use by
the general public under section 624.21, in the state treasury and credit:

(1) 25 percent to the volunteer fire assistance grant account established under section
88.068;

(2) 25 percent to the fire safety account established under section 297I.06, subdivision
3; and

(3) the remainder to the general fund.

For purposes of this paragraph, the percentage of total sales and use tax revenue derived
from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be
sold to persons 18 years old or older and are not prohibited from use by the general public
under section 624.21, is a set percentage of the total sales and use tax revenues collected in
the state, with the percentage determined under Laws 2017, First Special Session chapter
1, article 3, section 39.

(k) The revenues deposited under paragraphs (a) to (j) 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 Subd. 3. new text end

new text begin Sales tax estimates. new text end

new text begin (a) By July 1, 2021, and by June 1 in each odd-numbered
year, or more frequently at the commissioner's discretion, the commissioner must estimate
the amount and percentage of total sales tax revenues, including interest and penalties,
collected in the previous calendar year that is attributable to sales and purchases of motor
vehicle repair and replacement parts. The estimate must be based on federal data and
department consumption models. Beginning July 1 following a percentage estimate revision,
the estimate is effective for deposits under subdivision 2, paragraph (g).
new text end

new text begin (b) The commissioner must maintain on the department's website information concerning
each revised estimate and the estimation methodology.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021, except that subdivision 3
is effective the day following final enactment.
new text end