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HF 2508

as introduced - 89th Legislature (2015 - 2016) Posted on 03/08/2016 04:15pm

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

Current Version - as introduced

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A bill for an act
relating to transportation; mass transit; establishing a fare revenue schedule for
Metro Transit; amending Minnesota Statutes 2014, section 473.408, subdivision
2, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2014, section 473.408, subdivision 2, is amended to read:


Subd. 2.

Fare policy.

(a) Fares and fare collection systems deleted text begin shalldeleted text end new text begin mustnew text end be established
and administered to accomplish the following purposes:

(1) to encourage and increase transit and paratransit ridership with an emphasis
on regular ridership;

(2) to restrain increases in the average operating subsidy per passenger;

(3) to ensure that no riders on any route pay more in fares than the average cost of
providing the service on that route;

(4) to ensure that operating revenues are proportioned to the cost of providing the
service so as to reduce any disparity in the subsidy per passenger on routes in the transit
system; deleted text begin and
deleted text end

(5) to implement the social fares as set forth in subdivision 2bdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (6) to ensure compliance with the fare revenue schedule in subdivision 11.
new text end

(b) The plan must contain a statement of the policies that will govern the imposition
of user charges for various types of transit service and the policies that will govern
decisions by the council to change fare policy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2014, section 473.408, is amended by adding a subdivision
to read:


new text begin Subd. 11. new text end

new text begin Fare revenue schedule; requirements; penalty. new text end

new text begin (a) For the calendar
years ending on the specified dates, annual fare revenues collected from all transit systems
operated by the council must equal the stated percentage of the council's total cost to
operate all transit systems:
new text end

new text begin (1) new text end new text begin December 31, 2016, 30 percent;
new text end

new text begin (2) December 31, 2017, 35 percent;
new text end

new text begin (3) December 31, 2018, 40 percent;
new text end

new text begin (4) December 31, 2019, 45 percent; and
new text end

new text begin (5) December 31, 2020, and each December 31 thereafter, 50 percent.
new text end

new text begin (b) If the total fare revenues collected by the council during a calendar year do not
meet the percentage required under paragraph (a), the council must pay a penalty equaling
half of the total revenue shortfall. Penalty payment must be made to the commissioner
of management and budget by March 1 the year following a fare revenue shortfall. The
commissioner of management and budget must deposit all penalties paid under this
paragraph into the trunk highway fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end