HF 2190

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to transportation; establishing Minnesota 
  1.3             transportation fund for highway and transit capital 
  1.4             purposes; defining terms; temporarily increasing motor 
  1.5             fuel tax rates; proposing an amendment to the 
  1.6             Minnesota Constitution, article XIV, sections 5 and 
  1.7             10, and by adding a section; changing the dedication 
  1.8             of certain highway user taxes; amending Minnesota 
  1.9             Statutes 1996, sections 160.02, subdivision 7; 161.04, 
  1.10            by adding a subdivision; 296.02, subdivision 1b; and 
  1.11            296.025, subdivision 1b; proposing coding for new law 
  1.12            in Minnesota Statutes, chapter 161. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14                             ARTICLE 1 
  1.15                 TRANSPORTATION CAPITAL INVESTMENT 
  1.16     Section 1.  [161.0411] [MINNESOTA TRANSPORTATION FUND.] 
  1.17     Subdivision 1.  [FUND CREATED.] A Minnesota transportation 
  1.18  fund is established in the state treasury.  The fund consists of 
  1.19  money credited to the fund by law. 
  1.20     Subd. 2.  [USES OF FUND.] Money in the Minnesota 
  1.21  transportation fund may be appropriated for transportation 
  1.22  capital investments, including: 
  1.23     (1) construction, reconstruction, and improvement of state 
  1.24  trunk highways; 
  1.25     (2) construction, reconstruction, and improvement of other 
  1.26  highways and streets; and 
  1.27     (3) transit capital investments, including vehicles, land 
  1.28  acquisition, and corridor development. 
  1.29     Subd. 3.  [INVESTMENT OF FUND.] On request of the 
  2.1   commissioner, the state board of investment shall invest money 
  2.2   in the fund in those securities authorized for that purpose in 
  2.3   section 11A.21.  Interest and profits from the investments must 
  2.4   be credited to the fund. 
  2.5      Subd. 4.  [TRANSPORTATION CAPITAL INVESTMENT ADVISORY 
  2.6   COMMISSION.] (a) A transportation capital investment advisory 
  2.7   commission is established, composed of: 
  2.8      (1) four members of the house of representatives appointed 
  2.9   by the speaker of the house, not more than three of whom may be 
  2.10  of the same political party; 
  2.11     (2) four members of the senate appointed by the senate 
  2.12  committee on committees, not more than three of whom may be of 
  2.13  the same political party; 
  2.14     (3) the commissioner of transportation; 
  2.15     (4) the commissioner of trade and economic development; and 
  2.16     (5) one member appointed by the governor. 
  2.17  Appointees serve at the pleasure of the appointing authority. 
  2.18     (b) The commission shall conduct a continuing study of 
  2.19  Minnesota's transportation capital investment needs and shall 
  2.20  consider proposals for expenditures from the Minnesota 
  2.21  transportation fund.  By January 1 of each year, the commission 
  2.22  shall submit to the legislature a recommended capital investment 
  2.23  plan for the next five years that includes a detailed list of 
  2.24  transportation capital investment projects and recommended 
  2.25  appropriations for those projects from the fund. 
  2.26     Sec. 2.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
  2.27     An amendment to the Minnesota Constitution, changing 
  2.28  article XIV, sections 5 and 10, and by adding a section, is 
  2.29  proposed to the people. 
  2.30     If the amendment is adopted, article XIV, section 5, will 
  2.31  read: 
  2.32     Sec. 5.  There is hereby created a highway transportation 
  2.33  user tax distribution fund to be used solely for highway 
  2.34  transportation purposes as specified in this article.  The fund 
  2.35  consists of the proceeds of any taxes authorized by sections 9 
  2.36  and 10 of this article attributable to the rate at which those 
  3.1   taxes were imposed on June 30, 1999.  The net proceeds of the 
  3.2   taxes Money in the transportation user tax distribution fund 
  3.3   shall be apportioned:  62 50 percent to the trunk highway fund; 
  3.4   29 26 percent to the county state-aid highway fund; nine eight 
  3.5   percent to the municipal state-aid street fund; and 16 percent 
  3.6   to the Minnesota transportation fund.  Five percent of the net 
  3.7   proceeds of the highway transportation user tax distribution 
  3.8   fund may be set aside and apportioned by law to one or more of 
  3.9   the three four foregoing funds.  The balance of the highway 
  3.10  transportation user tax distribution fund shall be transferred 
  3.11  to the Minnesota transportation fund, the trunk highway fund, 
  3.12  the county state-aid highway fund, and the municipal state-aid 
  3.13  street fund in accordance with the percentages set forth in this 
  3.14  section.  No change in the apportionment of the five percent may 
  3.15  be made within six years of the last previous change.  
  3.16     article XIV, section 10, will read: 
  3.17     Sec. 10.  The legislature may levy an excise tax on any 
  3.18  means or substance used for propelling vehicles on the public 
  3.19  highways of this state or on the business of selling it.  The 
  3.20  proceeds of the tax shall be paid into the highway user tax 
  3.21  distribution fund.  This section does not apply to a tax imposed 
  3.22  by law on the sale of motor fuel and based on the selling price 
  3.23  of the motor fuel. 
  3.24     and a section will be added to article XIV to read: 
  3.25     Sec. 12.  A Minnesota transportation fund is created to be 
  3.26  used solely for transportation purposes as defined by law.  The 
  3.27  fund consists of all revenues resulting from revenue 
  3.28  attributable to increases in the rates of the taxes authorized 
  3.29  by sections 9 and 10 above the rates in effect on June 30, 1999, 
  3.30  and all other revenue credited to the fund by law. 
  3.31     Sec. 3.  [SUBMISSION TO VOTERS.] 
  3.32     The constitutional amendment proposed in section 2 must be 
  3.33  submitted to the voters at the 1998 general election.  The 
  3.34  question submitted must be: 
  3.35     "Shall the Minnesota Constitution be amended to (1) create 
  3.36  the Minnesota transportation fund for transportation purposes as 
  4.1   defined by law, and dedicate to that fund revenue from the 
  4.2   increases in motor fuel taxes and motor vehicle license taxes 
  4.3   above the rates in effect on June 30, 1999; (2) allocate the 
  4.4   revenues from motor fuel taxes and motor vehicle license taxes 
  4.5   attributable to rates in effect on June 30, 1999, to the 
  4.6   Minnesota transportation fund, the trunk highway fund, the 
  4.7   county state-aid highway fund, and the municipal state-aid 
  4.8   street fund; and (3) provide that the constitutional dedication 
  4.9   of revenues from motor fuel taxes does not apply to a sales tax 
  4.10  on motor fuel? 
  4.11                                     Yes .......
  4.12                                     No ........"
  4.13     Sec. 4.  [EFFECTIVE DATE.] 
  4.14     Section 1 is effective July 1, 1999; except that if the 
  4.15  constitutional amendment proposed in section 2 is not adopted at 
  4.16  the 1998 general election, section 1 shall not take effect.  
  4.17                             ARTICLE 2 
  4.18                       TRANSPORTATION FINANCE 
  4.19     Section 1.  Minnesota Statutes 1996, section 160.02, 
  4.20  subdivision 7, is amended to read: 
  4.21     Subd. 7.  [ROAD OR HIGHWAY.] "Road" or "highway" is a 
  4.22  corridor designed primarily for the efficient transportation of 
  4.23  people and goods and includes, unless otherwise specified, the 
  4.24  several kinds of highways as defined in this section, including 
  4.25  roads designated as minimum-maintenance roads, and also 
  4.26  cartways, together with all bridges or other structures thereon 
  4.27  which form a part of the same.  
  4.28     Sec. 2.  Minnesota Statutes 1996, section 161.04, is 
  4.29  amended by adding a subdivision to read: 
  4.30     Subd. 3.  [USES OF FUND.] (a) Within the metropolitan area 
  4.31  as defined in section 473.121, subdivision 2, money in the trunk 
  4.32  highway fund may be spent for projects in trunk highway 
  4.33  corridors that include public transit facilities and are 
  4.34  designed to: 
  4.35     (1) maximize federal matching funds available for 
  4.36  transportation; 
  5.1      (2) contribute to attaining the congestion mitigation and 
  5.2   ambient air quality standards of the federal Clean Air Act; 
  5.3      (3) relieve congestion and expedite travel; 
  5.4      (4) conserve energy; and 
  5.5      (5) reduce highway damage and other costs of highway use. 
  5.6   These uses are deemed to be for trunk highway purposes. 
  5.7      (b) "Public transit facilities" means the capital 
  5.8   facilities other than transit vehicles, including real property, 
  5.9   equipment, and improvements, that are used, constructed, or 
  5.10  maintained to provide for-hire transportation service on a 
  5.11  regular and continuing basis to the general public. 
  5.12     Sec. 3.  Minnesota Statutes 1996, section 296.02, 
  5.13  subdivision 1b, is amended to read: 
  5.14     Subd. 1b.  [RATES IMPOSED.] The gasoline excise tax is 
  5.15  imposed at the following rates: 
  5.16     (1) E85 is taxed at the rate of 17.7 cents per gallon until 
  5.17  June 30, 1999, and 14.2 cents per gallon thereafter; 
  5.18     (2) M85 is taxed at the rate of 14.2 cents per gallon until 
  5.19  June 30, 1999, and 11.4 cents per gallon thereafter; and 
  5.20     (3) all other gasoline is taxed at the rate of 25 cents per 
  5.21  gallon until June 30, 1999, and 20 cents per gallon thereafter.  
  5.22     Sec. 4.  Minnesota Statutes 1996, section 296.025, 
  5.23  subdivision 1b, is amended to read: 
  5.24     Subd. 1b.  [TAX RATES.] The special fuel excise tax is 
  5.25  imposed at the following rates: 
  5.26     (1) Liquefied petroleum gas or propane is taxed at the rate 
  5.27  of 18.7 cents per gallon until June 30, 1999, and 15 cents per 
  5.28  gallon thereafter. 
  5.29     (2) Liquefied natural gas is taxed at the rate of 15 cents 
  5.30  per gallon until June 30, 1999, and 12 cents per 
  5.31  gallon thereafter. 
  5.32     (3) Compressed natural gas is taxed at the rate of $2.174 
  5.33  per thousand cubic feet until June 30, 1999, and $1.739 per 
  5.34  thousand cubic feet thereafter; or 25 cents per gasoline 
  5.35  equivalent until June 30, 1999, and 20 cents per gasoline 
  5.36  equivalent thereafter, as defined by the National Conference on 
  6.1   Weights and Measures, which is 5.66 pounds of natural gas. 
  6.2      (4) All other special fuel is taxed at the same rate as the 
  6.3   gasoline excise tax. 
  6.4      Sec. 5.  [EFFECTIVE DATE.] 
  6.5      Sections 1 to 4 are effective July 1, 1997.  Sections 3 and 
  6.6   4 apply to all gasoline and undyed diesel fuel in distributor 
  6.7   storage on that date.