HF 3203

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

  1.1                          A bill for an act 
  1.2             relating to local government aids; establishing new 
  1.3             local government aid accounts and allocating funding; 
  1.4             changing funding mechanisms for existing transit aid 
  1.5             funds and the city local government aid program; 
  1.6             amending Minnesota Statutes 2002, sections 16A.88, 
  1.7             subdivision 2; 477A.014, subdivision 5; Minnesota 
  1.8             Statutes 2003 Supplement, sections 16A.88, subdivision 
  1.9             1; 297A.94; 297B.09, subdivision 1; 477A.013, 
  1.10            subdivision 8; 477A.03, subdivision 2a; proposing 
  1.11            coding for new law in Minnesota Statutes, chapter 16A. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.14  16A.88, subdivision 1, is amended to read: 
  1.15     Subdivision 1.  [GREATER MINNESOTA TRANSIT FUND.] The 
  1.16  greater Minnesota transit fund is established within the state 
  1.17  treasury.  Money in the fund is annually appropriated to the 
  1.18  commissioner of transportation for assistance to transit systems 
  1.19  outside the metropolitan area under section 174.24.  Beginning 
  1.20  in fiscal year 2003, the commissioner may use up to $400,000 
  1.21  each year for administration of the transit program.  The 
  1.22  commissioner shall use the fund for transit operations as 
  1.23  provided in section 174.24 and related program 
  1.24  administration.  The commissioner may use up to $25,217,000 in 
  1.25  fiscal year 2006, $25,829,000 in fiscal year 2007, and an amount 
  1.26  equal to the authorized amount in the previous year multiplied 
  1.27  by .... in fiscal years 2008 and thereafter for transit 
  1.28  operations as provided in section 174.24 without additional 
  2.1   approval by the legislature.  Any excess money in the account is 
  2.2   to be used for the funding of transit systems in the greater 
  2.3   Minnesota area, subject to legislative appropriation. 
  2.4      Sec. 2.  Minnesota Statutes 2002, section 16A.88, 
  2.5   subdivision 2, is amended to read: 
  2.6      Subd. 2.  [METROPOLITAN AREA TRANSIT FUND.] The 
  2.7   metropolitan area transit fund is established within the state 
  2.8   treasury.  All money in the fund is annually appropriated to the 
  2.9   Metropolitan Council for the funding of transit systems within 
  2.10  the metropolitan area under sections 473.384, 473.387, 473.388, 
  2.11  and 473.405 to 473.449 and shall be used for the following 
  2.12  purposes: 
  2.13     (1) the amount to be spent on operating and administrative 
  2.14  costs is limited to $199,487,000 in fiscal year 2006, 
  2.15  $209,934,000 in fiscal year 2007, and the authorized amount in 
  2.16  the previous year multiplied by .... in fiscal year 2008 and 
  2.17  thereafter; and 
  2.18     (2) the remaining amount in the fund may be used for 
  2.19  funding of transit capital and operations, subject to 
  2.20  legislative appropriation. 
  2.21     Sec. 3.  [16A.89] [LOCAL GOVERNMENT AID ACCOUNTS.] 
  2.22     Subdivision 1.  [GREATER MINNESOTA LOCAL GOVERNMENT AID 
  2.23  ACCOUNT.] The greater Minnesota local government aid account is 
  2.24  established in the general fund.  Money in the account is to be 
  2.25  used for the funding of local government aid under sections 
  2.26  477A.011 to 477A.03 for cities located outside of the 
  2.27  metropolitan area.  For purposes of this subdivision, 
  2.28  "metropolitan area" is the metropolitan area defined in section 
  2.29  473.121, subdivision 2. 
  2.30     Subd. 2.  [METROPOLITAN LOCAL GOVERNMENT AID ACCOUNT.] The 
  2.31  metropolitan local government aid account is established in the 
  2.32  general fund.  Money in the account is to be used for the 
  2.33  funding of local government aid under sections 477A.011 to 
  2.34  477A.03 for cities located in the metropolitan area.  For 
  2.35  purposes of this subdivision, "metropolitan area" is the 
  2.36  metropolitan area defined in section 473.121, subdivision 2. 
  3.1      Sec. 4.  Minnesota Statutes 2003 Supplement, section 
  3.2   297A.94, is amended to read: 
  3.3      297A.94 [DEPOSIT OF REVENUES.] 
  3.4      (a) Except as provided in this section, the commissioner 
  3.5   shall deposit the revenues, including interest and penalties, 
  3.6   derived from the taxes imposed by this chapter in the state 
  3.7   treasury and credit them to the general fund.  
  3.8      (b) The commissioner shall deposit taxes in the Minnesota 
  3.9   agricultural and economic account in the special revenue fund if:
  3.10     (1) the taxes are derived from sales and use of property 
  3.11  and services purchased for the construction and operation of an 
  3.12  agricultural resource project; and 
  3.13     (2) the purchase was made on or after the date on which a 
  3.14  conditional commitment was made for a loan guaranty for the 
  3.15  project under section 41A.04, subdivision 3. 
  3.16  The commissioner of finance shall certify to the commissioner 
  3.17  the date on which the project received the conditional 
  3.18  commitment.  The amount deposited in the loan guaranty account 
  3.19  must be reduced by any refunds and by the costs incurred by the 
  3.20  Department of Revenue to administer and enforce the assessment 
  3.21  and collection of the taxes.  
  3.22     (c) The commissioner shall deposit the revenues, including 
  3.23  interest and penalties, derived from the taxes imposed on sales 
  3.24  and purchases included in section 297A.61, subdivision 3, 
  3.25  paragraph (g), clauses (1) and (4), in the state treasury, and 
  3.26  credit them as follows: 
  3.27     (1) first to the general obligation special tax bond debt 
  3.28  service account in each fiscal year the amount required by 
  3.29  section 16A.661, subdivision 3, paragraph (b); and 
  3.30     (2) after the requirements of clause (1) have been met, the 
  3.31  balance to the general fund. 
  3.32     (d) The commissioner shall deposit the revenues, including 
  3.33  interest and penalties, collected under section 297A.64, 
  3.34  subdivision 5, in the state treasury and credit them to the 
  3.35  general fund.  By July 15 of each year the commissioner shall 
  3.36  transfer to the highway user tax distribution fund an amount 
  4.1   equal to the excess fees collected under section 297A.64, 
  4.2   subdivision 5, for the previous calendar year. 
  4.3      (e) For fiscal year 2001, 97 percent; for fiscal years 2002 
  4.4   and 2003, 87 percent; and for fiscal year 2004 and thereafter, 
  4.5   72.43 percent of the revenues, including interest and penalties, 
  4.6   transmitted to the commissioner under section 297A.65, must be 
  4.7   deposited by the commissioner in the state treasury as follows: 
  4.8      (1) 50 percent of the receipts must be deposited in the 
  4.9   heritage enhancement account in the game and fish fund, and may 
  4.10  be spent only on activities that improve, enhance, or protect 
  4.11  fish and wildlife resources, including conservation, 
  4.12  restoration, and enhancement of land, water, and other natural 
  4.13  resources of the state; 
  4.14     (2) 22.5 percent of the receipts must be deposited in the 
  4.15  natural resources fund, and may be spent only for state parks 
  4.16  and trails; 
  4.17     (3) 22.5 percent of the receipts must be deposited in the 
  4.18  natural resources fund, and may be spent only on metropolitan 
  4.19  park and trail grants; 
  4.20     (4) three percent of the receipts must be deposited in the 
  4.21  natural resources fund, and may be spent only on local trail 
  4.22  grants; and 
  4.23     (5) two percent of the receipts must be deposited in the 
  4.24  natural resources fund, and may be spent only for the Minnesota 
  4.25  Zoological Garden, the Como Park Zoo and Conservatory, and the 
  4.26  Duluth Zoo. 
  4.27     (f) The revenue dedicated under paragraph (e) may not be 
  4.28  used as a substitute for traditional sources of funding for the 
  4.29  purposes specified, but the dedicated revenue shall supplement 
  4.30  traditional sources of funding for those purposes.  Land 
  4.31  acquired with money deposited in the game and fish fund under 
  4.32  paragraph (e) must be open to public hunting and fishing during 
  4.33  the open season, except that in aquatic management areas or on 
  4.34  lands where angling easements have been acquired, fishing may be 
  4.35  prohibited during certain times of the year and hunting may be 
  4.36  prohibited.  At least 87 percent of the money deposited in the 
  5.1   game and fish fund for improvement, enhancement, or protection 
  5.2   of fish and wildlife resources under paragraph (e) must be 
  5.3   allocated for field operations. 
  5.4      (g) By July 10 of each year the commissioner shall deposit 
  5.5   revenues equal to the sum of (1) the amount generated by a one 
  5.6   percent tax, including interest and penalties, on all taxable 
  5.7   sales outside of the metropolitan area in the fiscal year two 
  5.8   years prior to the current fiscal year and (2) $....... as 
  5.9   follows: 
  5.10     (i) an amount equal to $284,787,500 in fiscal year 2006 and 
  5.11  an amount equal to the amount under this clause in the previous 
  5.12  year multiplied by the lesser of ..... or the growth rate in the 
  5.13  general sales tax revenues in the fiscal year two years prior to 
  5.14  the current year in fiscal year 2007 and thereafter, into the 
  5.15  greater Minnesota local government aid account under section 
  5.16  16A.89, subdivision 1; and 
  5.17     (ii) the remainder into the greater Minnesota transit fund 
  5.18  under section 16A.88. 
  5.19     (h) By July 10 of each year the commissioner shall deposit 
  5.20  revenues equal to (1) the amount generated by a one percent tax, 
  5.21  including interest and penalties, on all taxable sales inside of 
  5.22  the metropolitan area in the fiscal year two years prior to the 
  5.23  current fiscal year minus (2) the amount in paragraph (g), 
  5.24  clause (2), as follows: 
  5.25     (i) an amount equal to the amount of revenue needed to 
  5.26  cover the payments to cities in the metropolitan area under 
  5.27  sections 477A.011 to 477A.03 in the current fiscal year shall be 
  5.28  deposited in the metropolitan local government aid account under 
  5.29  section 16A.89, subdivision 2; and 
  5.30     (ii) the remainder shall be deposited in the metropolitan 
  5.31  area transit fund under section 16A.88. 
  5.32     (i) For purposes of paragraphs (g) and (h), "metropolitan 
  5.33  area" is the metropolitan area defined in section 473.121, 
  5.34  subdivision 2.  The amount of revenue generated by a one percent 
  5.35  tax on all taxable sales in each area shall be determined by the 
  5.36  commissioner of revenue and shall be equal to the total tax 
  6.1   revenues generated both in and outside of the state, multiplied 
  6.2   by the percent of sales to locations within the state that are 
  6.3   attributed to locations within that area. 
  6.4      [EFFECTIVE DATE.] This section is effective July 1, 2005. 
  6.5      Sec. 5.  Minnesota Statutes 2003 Supplement, section 
  6.6   297B.09, subdivision 1, is amended to read: 
  6.7      Subdivision 1.  [DEPOSIT OF REVENUES.] (a) Money collected 
  6.8   and received under this chapter must be deposited as provided in 
  6.9   this subdivision.  
  6.10     (b) From July 1, 2002, to June 30, 2003, 32 percent of the 
  6.11  money collected and received must be deposited in the highway 
  6.12  user tax distribution fund, 20.5 percent must be deposited in 
  6.13  the metropolitan area transit fund under section 16A.88, and 
  6.14  1.25 percent must be deposited in the greater Minnesota transit 
  6.15  fund under section 16A.88.  The remaining money must be 
  6.16  deposited in the general fund. 
  6.17     (c) From July 1, 2003, to June 30, 2007 2005, 30 percent of 
  6.18  the money collected and received must be deposited in the 
  6.19  highway user tax distribution fund, 21.5 percent must be 
  6.20  deposited in the metropolitan area transit fund under section 
  6.21  16A.88, 1.43 percent must be deposited in the greater Minnesota 
  6.22  transit fund under section 16A.88, 0.65 percent must be 
  6.23  deposited in the county state-aid highway fund, and 0.17 percent 
  6.24  must be deposited in the municipal state-aid street fund.  The 
  6.25  remaining money must be deposited in the general fund. 
  6.26     (d) From July 1, 2005, to June 30, 2007, 30 percent of the 
  6.27  money collected and received must be deposited in the highway 
  6.28  user tax distribution fund, 5.7 percent must be used to fund 
  6.29  transit spending with ... percent deposited in the metropolitan 
  6.30  area transit fund under section 16A.88 and ... percent deposited 
  6.31  in the greater Minnesota transit fund under section 16A.88, 0.65 
  6.32  percent must be deposited in the county state aid highway fund, 
  6.33  and 0.17 percent must be deposited in the municipal state aid 
  6.34  street fund.  The remaining money must be deposited in the 
  6.35  general fund. 
  6.36     (e) On and after July 1, 2007, 32 percent of the money 
  7.1   collected and received must be deposited in the highway user tax 
  7.2   distribution fund, 20.5 5.7 percent must be used for transit 
  7.3   funding with ... percent deposited in the metropolitan area 
  7.4   transit fund under section 16A.88, and 1.25 ... percent must be 
  7.5   deposited in the greater Minnesota transit fund under section 
  7.6   16A.88.  The remaining money must be deposited in the general 
  7.7   fund. 
  7.8      Sec. 6.  Minnesota Statutes 2003 Supplement, section 
  7.9   477A.013, subdivision 8, is amended to read: 
  7.10     Subd. 8.  [CITY FORMULA AID.] In calendar year 2004 and 
  7.11  subsequent years, the formula aid for a city is equal to the 
  7.12  need increase percentage multiplied by the difference between 
  7.13  (1) the city's revenue need multiplied by its population, and 
  7.14  (2) the sum of the city's net tax capacity multiplied by the tax 
  7.15  effort rate, and the taconite aids under sections 298.28 and 
  7.16  298.282, multiplied by the following percentages:  
  7.17     (i) zero percent for aids payable in 2004; 
  7.18     (ii) 25 percent for aids payable in 2005; 
  7.19     (iii) 50 percent for aids payable in 2006; 
  7.20     (iv) 75 percent for aids payable in 2007; and 
  7.21     (v) 100 percent for aids payable in 2008 and thereafter.  
  7.22  No city may have a formula aid amount less than zero.  The need 
  7.23  increase percentage must be the same for all cities.  
  7.24     The applicable need increase percentage must be calculated 
  7.25  by the Department of Revenue so that the total of the aid under 
  7.26  subdivision 9 for cities outside of the metropolitan area equals 
  7.27  the total amount available for aid under section 477A.03 for 
  7.28  cities outside of the metropolitan area after the subtraction 
  7.29  under section 477A.014, subdivisions 4 and 5.  
  7.30     [EFFECTIVE DATE.] This section is effective for aids 
  7.31  payable in 2005 and thereafter. 
  7.32     Sec. 7.  Minnesota Statutes 2002, section 477A.014, 
  7.33  subdivision 5, is amended to read: 
  7.34     Subd. 5.  [DEDUCTION FROM AID PAYMENTS.] The commissioner 
  7.35  of revenue shall deduct the amounts certified under subdivision 
  7.36  4 from the aid payments to be made to appropriate local units of 
  8.1   government in the next aid payment year.  Deductions from city 
  8.2   payments shall be made proportionately from the metropolitan 
  8.3   local government aid account and the greater Minnesota local 
  8.4   government aid account, based on the relative amounts of money 
  8.5   in each account.  
  8.6      [EFFECTIVE DATE.] This section is effective for aids 
  8.7   payable in 2005 and thereafter. 
  8.8      Sec. 8.  Minnesota Statutes 2003 Supplement, section 
  8.9   477A.03, subdivision 2a, is amended to read: 
  8.10     Subd. 2a.  [CITIES.] For aids payable in 2004, the total 
  8.11  aids paid under section 477A.013, subdivision 9, are limited to 
  8.12  $429,000,000.  For aids payable in 2005 and thereafter, the 
  8.13  total aids paid under section 477A.013, subdivision 9, are 
  8.14  increased to $437,052,000 to cities outside of the metropolitan 
  8.15  area are paid from the greater Minnesota local government aid 
  8.16  account established in section 16A.89, subdivision 1, and 
  8.17  limited to the amount available in the account.  For aids 
  8.18  payable in 2005 and thereafter, the total aids payable under 
  8.19  section 477A.013, subdivision 9, to cities in the metropolitan 
  8.20  area are paid from the metropolitan local government aid account 
  8.21  established in section 16A.89, subdivision 2. 
  8.22     [EFFECTIVE DATE.] This section is effective for aids 
  8.23  payable in 2005 and thereafter.