HF 3369

as introduced - 90th Legislature (2017 - 2018) Posted on 03/08/2018 05:55pm

A bill for an act
relating to transportation finance; modifying and establishing various transportation
finance, budgeting, appropriations, accounting, fiscal planning, and reporting
provisions related to the Metropolitan Council; amending Minnesota Statutes 2016,
sections 16A.88, subdivision 2; 473.13, subdivisions 1, 4, by adding subdivisions;
473.146, subdivisions 1, 3; 473.375, by adding a subdivision; 473.4051, subdivision
3; Minnesota Statutes 2017 Supplement, section 3.972, subdivision 4.

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

Section 1.

Minnesota Statutes 2017 Supplement, section 3.972, subdivision 4, is amended
to read:

Subd. 4.

Certain transit financial activity reporting.

(a) The legislative auditor must
perform a transit financial activity review of financial information for the Metropolitan
Council's Transportation Division and new text begin , if it engaged in financial activity, new text end the joint powers
board under section 297A.992. Within deleted text begin 14 deleted text end new text begin 60 new text end days of the end of each new text begin even-numbered new text end fiscal
deleted text begin quarter deleted text end new text begin year new text end , the legislative auditor must submit the review to the Legislative Audit
Commission new text begin , Legislative Commission on Metropolitan Government, new text end and the chairs deleted text begin and deleted text end new text begin , new text end
ranking minority members new text begin , and staff new text end of the legislative committees with jurisdiction over
transportation policy and finance, finance, and ways and means.

(b) At a minimum, each transit financial activity review must include:

(1) a summary of monthly financial statements, including balance sheets and operating
statements, that shows income, expenditures, and fund balance;

(2) a list of any obligations and agreements entered into related to transit purposes,
whether for capital or operating, including but not limited to bonds, notes, grants, and future
funding commitments;

(3) the amount of funds in clause (2) that has been committed;

(4) independent analysis by the fiscal oversight officer of the fiscal viability of revenues
and fund balance compared to expenditures, taking into account:

(i) all expenditure commitments;

(ii) cash flow;

(iii) sufficiency of estimated funds; and

(iv) financial solvency of anticipated transit projects; and

(5) a notification concerning whether the requirements under paragraph (c) have been
met.

(c) The Metropolitan Council and new text begin , if engaged in financial activity, new text end the joint powers board
under section 297A.992 must produce monthly financial statements as necessary for the
review under paragraph (b), clause (1), and provide timely information as requested by the
legislative auditor.

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 2016, section 16A.88, subdivision 2, is amended to read:

Subd. 2.

Metropolitan area transit account.

The metropolitan area transit account is
established within the transit assistance fund in the state treasury. All money in the account
is annually appropriated to the Metropolitan Council for deleted text begin the funding of deleted text end transit deleted text begin systems deleted text end new text begin
system operating expenditures new text end within the metropolitan area under sections 473.384, 473.386,
473.387, 473.388, and 473.405 to 473.449.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 3.

Minnesota Statutes 2016, section 473.13, subdivision 1, is amended to read:

Subdivision 1.

Budget.

(a) new text begin Except as provided in paragraph (b), new text end on or before December
20 of each year, the council shall adopt a final budget covering its anticipated receipts and
disbursements for the ensuing year and shall decide upon the total amount necessary to be
raised from ad valorem tax levies to meet its budget. The budget deleted text begin shall deleted text end new text begin must new text end state in detail
the expenditures for each program to be undertaken, including the expenses for salaries,
consultant services, overhead, travel, deleted text begin printing, deleted text end and other items. The budget deleted text begin shall deleted text end new text begin must new text end state
in detail the new text begin council's nontransportation new text end capital expenditures deleted text begin of the council deleted text end for the budget
year, based on a five-year capital program adopted by the council and transmitted to the
legislature. After adoption of the budget and no later than five working days after December
20, the council shall certify to the auditor of each metropolitan county the share of the tax
to be levied within that county, which must be an amount bearing the same proportion to
the total levy agreed on by the council as the net tax capacity of the county bears to the net
tax capacity of the metropolitan area. The maximum amount of any levy made for the
purpose of this chapter may not exceed the limits set by the statute authorizing the levy.

new text begin (b) For the transportation components of the council's budgeting, each fiscal year starts
July 1 and ends the following June 30. On or before June 15 of each year, the council must
adopt a final budget for the transportation components that identifies its anticipated receipts
and disbursements for the next fiscal year. The budget must state in detail the expenditures
to be undertaken for each program, including the expenses for salaries, consultant services,
overhead, travel, and other items. The budget must state in detail the council's transportation
capital expenditures for the budget year, based on a five-year capital program adopted by
the council and transmitted to the legislature.
new text end

deleted text begin (b) deleted text end new text begin (c) As part of the budget under paragraph (b) in new text end each even-numbered year new text begin , new text end the council
deleted text begin shall deleted text end new text begin must new text end prepare for its transit programs a financial plan for the succeeding three deleted text begin calendar deleted text end
years deleted text begin , in half-year segments deleted text end . The financial plan must contain schedules of user charges and
any changes in user charges planned or anticipated by the council during the period of the
plan. The financial plan must contain a proposed request for state financial assistance for
the succeeding biennium.

deleted text begin (c) deleted text end new text begin (d) new text end In addition, deleted text begin the deleted text end new text begin each new text end budget new text begin under paragraphs (a) and (b) new text end must show for each
year:

(1) the estimated operating revenues from all sources including funds on hand at the
beginning of the year, and estimated expenditures for costs of operation, administration,
maintenance, and debt service;

(2) capital improvement funds estimated to be on hand at the beginning of the year and
estimated to be received during the year from all sources and estimated cost of capital
improvements to be paid out or expended during the year, all in such detail and form as the
council may prescribe; and

(3) the estimated source and use of pass-through funds.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective beginning with the
transportation budget period under paragraph (b) that starts July 1, 2019, and applies in the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 4.

Minnesota Statutes 2016, section 473.13, is amended by adding a subdivision to
read:

new text begin Subd. 1d. new text end

new text begin Budget amendments. new text end

new text begin In conjunction with the adoption of any amendment
to the budgets under subdivision 1, the council must submit a summary of budget changes
and a copy of the amended budget to the members and staff of the legislative committees
with jurisdiction over transportation policy and finance and to the Legislative Commission
on Metropolitan Government.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 5.

Minnesota Statutes 2016, section 473.13, subdivision 4, is amended to read:

Subd. 4.

Accounts; new text begin accounting system; controls; new text end audits.

new text begin (a) new text end The council shall keep
an accurate account of its receipts and disbursements. new text begin For the transportation components
of the council's financial activity, the council must use the state accounting system maintained
by the commissioner of management and budget under sections 16A.14 and 16A.15.
new text end

new text begin (b) new text end Disbursements of council money must be made by check or by electronic funds
transfer, signed or authorized by the chair or vice-chair of the council, and countersigned
or authorized by its regional administrator or designee after whatever auditing and approval
of the expenditure may be required by the council.

new text begin (c) new text end The state auditor shall audit the books and accounts of the council once each year,
or as often as funds and personnel of the state auditor permit. The council shall pay to the
state the total cost and expenses of the examination, including the salaries paid to the auditors
while actually engaged in making the examination. The general fund must be credited with
all collections made for any examination.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective July 1, 2019, for the
transportation budget period that starts on that date and applies in the counties of Anoka,
Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 6.

Minnesota Statutes 2016, section 473.13, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Overview of revenues and expenditures; forecast. new text end

new text begin (a) In cooperation with
the Department of Management and Budget and as required by section 16A.103, the council
must prepare in February and November of each year a financial overview and forecast of
revenues and expenditures for the transportation components of the council's budget.
new text end

new text begin (b) At a minimum, the financial overview and forecast must identify:
new text end

new text begin (1) actual revenues, expenditures, transfers, reserves, and balances for each of the previous
four budget years;
new text end

new text begin (2) budgeted and forecasted revenues, expenditures, transfers, reserves, and balances
for each year within the state forecast period; and
new text end

new text begin (3) a comparison of the information under clause (2) to the prior forecast, including any
changes made.
new text end

new text begin (c) The information under paragraph (b), clauses (1) and (2), must include:
new text end

new text begin (1) a breakdown for each transportation operating budget category established by the
council, including but not limited to bus, light rail transit, commuter rail, planning, special
transportation service under section 473.386, and assistance to replacement service providers
under section 473.388;
new text end

new text begin (2) data for both transportation operating and capital expenditures; and
new text end

new text begin (3) fund balances for each replacement service provider under section 473.388.
new text end

new text begin (d) The financial overview and forecast must summarize reserve policies, identify the
methodology for cost allocation, and review revenue assumptions and variables affecting
the assumptions.
new text end

new text begin (e) The council must review the financial overview and forecast information with the
chairs and legislative staff of the legislative committees with jurisdiction over finance, ways
and means, and transportation finance no later than two weeks following the release of the
forecast.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 7.

Minnesota Statutes 2016, section 473.146, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

The council deleted text begin shall deleted text end new text begin must new text end adopt deleted text begin a deleted text end long-range comprehensive
policy deleted text begin plan deleted text end new text begin plans new text end for transportation and wastewater treatment. deleted text begin The plans deleted text end new text begin Each policy plan new text end
must substantially conform to all policy statements, purposes, goals, standards, and maps
in the development guide developed and adopted by the council under new text begin section 473.145 and new text end
this chapter. Each policy plan must include, to the extent appropriate to the functions,
services, and systems covered, the following:

(1) forecasts of changes in the general levels and distribution of population, households,
employment, land uses, and other relevant matters, for the metropolitan area and appropriate
subareas;

(2) a statement of issues, problems, needs, and opportunities with respect to the functions,
services, and systems covered;

(3) a statement of the council's goals, objectives, and priorities with respect to the
functions, services, and systems covered, addressing areas and populations to be served,
the levels, distribution, and staging of services; a general description of the facility systems
required to support the services; the estimated cost of improvements required to achieve
the council's goals for the regional systems, including an analysis of what portion of the
funding for each improvement is proposed to come from the state, Metropolitan Council
levies, and cities, counties, and towns in the metropolitan area, respectively, and other
similar matters;

(4) a statement of policies to effectuate the council's goals, objectives, and priorities;

(5) a statement of the fiscal implications of the council's plan, including a statement of:
(i) the resources available under existing fiscal policy; (ii) the adequacy of resources under
existing fiscal policy and any shortfalls and unattended needs; (iii) additional resources, if
any, that are or may be required to effectuate the council's goals, objectives, and priorities;
and (iv) any changes in existing fiscal policy, on regional revenues and intergovernmental
aids respectively, that are expected or that the council has recommended or may recommend;

(6) a statement of the relationship of the policy plan to other policy plans and deleted text begin chapters deleted text end new text begin
relevant portions new text end of the deleted text begin Metropolitan deleted text end development guide;

(7) a statement of the relationships to local comprehensive plans prepared under sections
473.851 to 473.871; and

(8) additional general information as may be necessary to develop the policy plan or as
may be required by the laws relating to the metropolitan agency and function covered by
the policy plan.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 8.

Minnesota Statutes 2016, section 473.146, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Development guide: deleted text end Transportation new text begin policy plan new text end .

new text begin (a) new text end The transportation
deleted text begin chapter deleted text end new text begin policy plan new text end must include policies relating to all transportation forms and be designed
to promote the legislative determinations, policies, and goals set forth in section 473.371.

new text begin (b) In addition to the requirements regarding the contents of the policy plan under
subdivision 1, the plan must include:
new text end

new text begin (1) a fully constrained scenario that assumes no revenue increase from current law and
no inflationary increases;
new text end

new text begin (2) a partially constrained scenario that assumes no revenue increase from current law
but includes reasonable inflationary increases; and
new text end

new text begin (3) an envisioned revenue scenario that identifies a revenue increase in an amount that
accommodates transportation system maintenance, improvements, and expansion, including
for state and local roads, regular route bus service, busways, and guideways.
new text end

new text begin (c) The estimates under each scenario in paragraph (b) must identify anticipated long-term
transit system impacts, including unfunded costs for each transit mode and any reductions
in regular route bus service hours.
new text end

new text begin (d) new text end In addition to the requirements of subdivision 1 regarding the contents of the policy
plan, the nontransit deleted text begin element deleted text end new text begin portion new text end of the deleted text begin transportation chapter deleted text end new text begin plan new text end must include the
following:

(1) a statement of the needs and problems of the metropolitan area with respect to the
functions covered, including the present and prospective demand for and constraints on
access to regional business concentrations and other major activity centers and the constraints
on and acceptable levels of development and vehicular trip generation at such centers;

(2) the objectives of and the policies to be forwarded by the policy plan;

(3) a general description of the physical facilities and services to be developed;

(4) a statement as to the general location of physical facilities and service areas;

(5) a general statement of timing and priorities in the development of those physical
facilities and service areas;

(6) a detailed statement, updated every two years, of timing and priorities for
improvements and expenditures needed on the metropolitan highway system;

(7) a general statement on the level of public expenditure appropriate to the facilities;
and

(8) a long-range assessment of air transportation trends and factors that may affect airport
development in the metropolitan area and policies and strategies that will ensure a
comprehensive, coordinated, and timely investigation and evaluation of alternatives for
airport development.

new text begin (e) new text end The council shall develop the nontransit deleted text begin element deleted text end new text begin portion new text end in consultation with the
transportation advisory board and the Metropolitan Airports Commission and cities having
an airport located within or adjacent to its corporate boundaries. The council shall also take
into consideration the airport development and operations plans and activities of the
commission. The council shall transmit the results to the state Department of Transportation.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment, applies for the next regular update to the transportation policy plan, and
applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 9.

Minnesota Statutes 2016, section 473.375, is amended by adding a subdivision to
read:

new text begin Subd. 19. new text end

new text begin Expenditure of funds for capital costs. new text end

new text begin (a) The council is prohibited from
expending funds for transit capital costs, including capital maintenance, from the following
sources:
new text end

new text begin (1) state appropriations, including but not limited to general fund appropriations and
appropriations under section 16A.88, subdivision 2; and
new text end

new text begin (2) operating budget reserves.
new text end

new text begin (b) The expenditure prohibition under this subdivision does not apply to federal funds.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment for appropriations and reserves encumbered on or after that date and applies
in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 10.

Minnesota Statutes 2016, section 473.4051, subdivision 3, is amended to read:

Subd. 3.

Capital costs.

State money deleted text begin may deleted text end new text begin must new text end not be used deleted text begin to pay more than ten percent
of deleted text end new text begin for new text end the deleted text begin total deleted text end capital cost of a light rail transit project.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment for appropriations encumbered on or after that date and applies in the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end