HF 3998

as introduced - 89th Legislature (2015 - 2016) Posted on 05/11/2016 02:59pm

A bill for an act
relating to transportation; governing transit finance and policy in the Twin Cities
metropolitan area; requiring transportation planning; requiring certain funding
recommendations to the legislature; amending requirements governing a local
option transportation sales tax; establishing an account; making technical and
conforming changes; amending Minnesota Statutes 2014, sections 16A.88,
subdivision 1, by adding a subdivision; 297A.992, subdivisions 1, 2, 3, 4, 6a, 7,
8, 10; 473.146, subdivisions 1, 3; proposing coding for new law in Minnesota
Statutes, chapter 473; repealing Minnesota Statutes 2014, section 297A.992,
subdivisions 5, 6, 11, 12.

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

ARTICLE 1

METROPOLITAN AREA TRANSIT FINANCE AND POLICY

Section 1.

Minnesota Statutes 2014, section 16A.88, subdivision 1, is amended to read:

Subdivision 1.

Transit assistance fund established.

new text begin (a) new text end A transit assistance fund is
established within the state treasury. The fund receives money deleted text begin distributed under section
297B.09, subdivision 1, and other money deleted text end as specified by law.

new text begin (b) new text end Money in the fund new text begin received under section 297B.09, subdivision 1, new text end must
be allocated to the greater Minnesota transit account deleted text begin under subdivision 1a deleted text end and the
metropolitan area transit account deleted text begin under subdivision 2 deleted text end in the manner specified in new text begin that
new text end section deleted text begin 297B.09, subdivision 1, and deleted text end new text begin .
new text end

new text begin (c) Money in the fund new text end must be used solely for transit purposes under the Minnesota
Constitution, article XIV, section 13.

Sec. 2.

Minnesota Statutes 2014, section 16A.88, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Metropolitan area transit stability account. new text end

new text begin The metropolitan area transit
stability account is established within the transit assistance fund in the state treasury. The
account consists of funds allocated under section 297A.992, subdivision 8, and any other
funds donated, allotted, transferred, or otherwise provided to the account. Money in the
account may be expended only as appropriated by law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
new text end

Sec. 3.

Minnesota Statutes 2014, section 473.146, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

new text begin (a) new text end The council shall 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.

new text begin (b) new text end 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. 4.

Minnesota Statutes 2014, 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 transit element of the plan must include a primary objective of transit
system expansion to a 15 percent transit mode share by 2025, calculated for all trips. The
transit system expansion objective must be developed utilizing:
new text end

new text begin (1) projections of ridership by transit mode, including but not limited to regular route
bus, express bus, demand response and paratransit, highway bus rapid transit, arterial bus
rapid transit, commuter rail, and light rail transit; and
new text end

new text begin (2) evaluation of origin and destination data, commuting patterns, and the forecasts
created under subdivision 1, paragraph (b), clause (1).
new text end

new text begin (c) new text end In addition to the requirements of subdivision 1 regarding the contents of the
policy plan, the nontransit element 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 (d) new text end The council shall develop the nontransit element 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 and applies for the next plan update. This section applies in the counties
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 5.

new text begin [473.1462] REGIONAL TRANSIT SYSTEM INVESTMENT PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Annual regional transit system investment plan. new text end

new text begin (a) By December
15 annually, the council must prepare and adopt a comprehensive regional transit system
investment plan under this section. The plan must describe and account for transit system
operating and capital investments planned to occur over at least the next ten calendar years.
new text end

new text begin (b) The council's adopted annual transit operating and capital budgets must be
consistent with the transit system investment plan. The transit system investment plan
may be amended as needed.
new text end

new text begin (c) The council must submit the plan to the chairs and ranking minority members of
the legislative committees with jurisdiction over transportation policy and finance and to
the Legislative Commission on Metropolitan Government under section 3.8841.
new text end

new text begin Subd. 2. new text end

new text begin Plan requirements. new text end

new text begin The regional transit system investment plan under this
section must:
new text end

new text begin (1) provide projection details for (i) all revenues expected to be available to the
council for transit, (ii) operating and capital maintenance costs, and (iii) capital expansion
expenditures;
new text end

new text begin (2) analyze sufficiency of revenue for proposed operating and capital expenditures,
including an analysis of revenue and expenditure impacts for each proposed light rail
transit or bus rapid transit line;
new text end

new text begin (3) utilize the most cost-effective and efficient method for meeting the transit system
expansion objective in the transportation policy plan under section 473.146, subdivision 3;
new text end

new text begin (4) utilize cost-benefit analysis to compare any proposed light rail or commuter rail
line with (i) express bus, (ii) arterial bus rapid transit, and (iii) highway bus rapid transit;
new text end

new text begin (5) identify specific transit operations and capital investments expected in each
year of the plan;
new text end

new text begin (6) provide information on all regional public transit services funded in whole or in
part by the council, including but not limited to regular route bus services operated by
the council and replacement service providers under section 473.388, Metro Mobility
special transportation services provided under section 473.386, other dial-a-ride and
vanpool services provided by the council, and regional transitway operations and capital
investments for all existing and proposed transitway lines;
new text end

new text begin (7) utilize prioritization criteria in transit system investment management, which
must account for: (i) service for transit-dependent populations; (ii) cost-effectiveness; (iii)
basic transit service amenities, including signage and shelters; (iv) transit service amenity
improvements; (v) safety measures; (vi) best practices; and (vii) ongoing evaluation
of routes; and
new text end

new text begin (8) be consistent with the council's adopted transportation plans and programming.
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. 6.

new text begin [473.3905] TRANSIT FUNDING RECOMMENDATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Funding recommendations to legislature. new text end

new text begin (a) As provided in this
section, the council must adopt recommendations on legislation that appropriates the
forecasted available funds from the metropolitan area transit stability account in the transit
assistance fund for transit operations and projects.
new text end

new text begin (b) The council must submit the transit funding recommendations to the legislature
annually in conjunction with either an operating or capital budget submitted by the
governor under section 16A.11.
new text end

new text begin Subd. 2. new text end

new text begin Funding eligibility. new text end

new text begin The transit funding recommendations may only
identify funding from among the following eligible uses:
new text end

new text begin (1) bus operations, including but not limited to regular route service, special
transportation service, contracted service, and assistance to replacement service providers
under section 473.388;
new text end

new text begin (2) bus capital and bus facilities;
new text end

new text begin (3) intermodal transportation stations and facilities;
new text end

new text begin (4) park and ride facilities; and
new text end

new text begin (5) bus rapid transit and rail transitways, including but not limited to project
development, land acquisition, environmental analysis, design, engineering, construction,
equipping, operations, and capital maintenance.
new text end

new text begin Subd. 3. new text end

new text begin Requirements. new text end

new text begin (a) The transit funding recommendations must:
new text end

new text begin (1) take the form, as approved by the revisor of statutes, of proposed legislation;
new text end

new text begin (2) be accompanied by a narrative that summarizes: (i) the selection list under
subdivision 4, paragraph (d); (ii) comments under subdivision 4, paragraph (e); and (iii)
the investment priorities reflected in the recommendations, including analysis of the level
of funding for ongoing operating expenditures compared to funding for expansion of the
transit system, considering all major transit funding sources;
new text end

new text begin (3) specify appropriation amounts for each project or purpose; and
new text end

new text begin (4) be consistent with the council's transportation plans and programming, including:
(i) the development guide under section 473.145; (ii) the policy plan under section 473.146,
subdivision 3; (iii) the regional transit system investment plan under section 473.1462;
and (iv) the transit capital improvement program under section 473.39, subdivision 4.
new text end

new text begin (b) The transit funding recommendations may include grants to political subdivisions
for project development purposes.
new text end

new text begin Subd. 4. new text end

new text begin Recommendations development; selection committee. new text end

new text begin (a) The council
must establish a process for developing the transit funding recommendations under this
section.
new text end

new text begin (b) The council must establish a recommendations selection committee, which
must consist of:
new text end

new text begin (1) one county commissioner from each metropolitan county, appointed by each
respective county board;
new text end

new text begin (2) one elected official who is a city representative from each metropolitan county;
new text end

new text begin (3) one additional elected official who is a city representative from each county
for every additional 400,000 in population, or fraction of 400,000, in a county having
a population that is above 400,000; and
new text end

new text begin (4) the chair of the council's Transportation Committee.
new text end

new text begin (c) Each city representative must be elected at a meeting of cities in the metropolitan
area, which must be convened for that purpose by the Association of Metropolitan
Municipalities.
new text end

new text begin (d) The committee under paragraph (b) shall evaluate projects and transit funding
options following objective criteria established by the council, and must provide to the
council a selection list for recommended funding that includes a priority ranking.
new text end

new text begin (e) The process for development of recommendations must include review and
comment by:
new text end

new text begin (1) the commissioner of transportation;
new text end

new text begin (2) the advisory body under section 473.146, subdivision 4; and
new text end

new text begin (3) replacement service providers under section 473.388.
new text end

new text begin Subd. 5. new text end

new text begin Legislative process. new text end

new text begin The transit funding recommendations must be
considered by the legislative committees having jurisdiction over transportation finance.
new text end

Sec. 7. new text begin APPLICATION.
new text end

new text begin Section 6 applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin Unless specified otherwise, this act is effective January 1, 2017.
new text end

ARTICLE 2

METROPOLITAN AREA TRANSIT SALES TAX

Section 1.

Minnesota Statutes 2014, section 297A.992, subdivision 1, is amended to
read:

Subdivision 1.

Definitions.

For purposes of this section, the following terms have
the meanings given them:

(1) "metropolitan transportation area" means the counties participating in the joint
powers agreement under subdivision 3; new text begin and
new text end

(2) "eligible county" means the county of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, or Washington deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (3) "committee" means the Grant Evaluation and Ranking System (GEARS)
Committee;
deleted text end

deleted text begin (4) "minimum guarantee county" means any metropolitan county or eligible county
that is participating in the joint powers agreement under subdivision 3, whose proportion
of the annual sales tax revenue under this section collected within that county is less
than or equal to three percent; and
deleted text end

deleted text begin (5) "population" means the population, as defined in section 477A.011, subdivision
3, estimated or established by July 15 of the year prior to the calendar year in which
the representatives will serve on the Grant Evaluation and Ranking System Committee
established under subdivision 5.
deleted text end

Sec. 2.

Minnesota Statutes 2014, section 297A.992, subdivision 2, is amended to read:

Subd. 2.

Authorization; rates.

(a) Notwithstanding section 297A.99, subdivisions
1, 2, and 3, or 477A.016, or any other law, the board of a county participating in a
joint powers agreement as specified in this section shall impose by resolution (1) a
transportation sales and use tax at a rate of one-quarter of one percent on retail sales and
uses taxable under this chapter, and (2) an excise tax of $20 per motor vehicle, as defined
in section 297B.01, subdivision 11, purchased or acquired from any person engaged in the
business of selling motor vehicles at retail, occurring within the jurisdiction of the taxing
authority. The taxes authorized deleted text begin are to deleted text end new text begin must new text end fund deleted text begin transportation deleted text end new text begin transit new text end improvements deleted text begin as
specified in this section deleted text end , including debt service on obligations issued deleted text begin to finance such
improvements deleted text end pursuant to subdivision 7.

(b) The tax imposed under this section is not included in determining if the total tax
on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
12, section 87, or in determining a tax that may be imposed under any other limitations.

Sec. 3.

Minnesota Statutes 2014, section 297A.992, subdivision 3, is amended to read:

Subd. 3.

Joint powers agreement.

Before imposing the taxes authorized in
subdivision 2, an eligible county must declare by resolution of its county board to be part
of the metropolitan transportation area and must enter into a joint powers agreement. The
joint powers agreement:

(1) must form a joint powers board, as specified in subdivision 4;

(2) must provide a process that allows any eligible county, by resolution of its county
board, to join the joint powers board and impose the taxes authorized in subdivision 2; new text begin and
new text end

(3) may provide for withdrawal of a participating county before final termination of
the agreement deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (4) may provide for a weighted voting system for joint powers board decisions.
deleted text end

Sec. 4.

Minnesota Statutes 2014, section 297A.992, subdivision 4, is amended to read:

Subd. 4.

Joint powers board.

(a) The joint powers board must consist of one
or more commissioners of each county that is in the metropolitan transportation area,
appointed by its county board, and the chair of the Metropolitan Council deleted text begin , who must have
voting rights, subject to subdivision 3, clause (4) deleted text end . The joint powers board has the powers
and duties provided in this section and section 471.59.

(b) The joint powers board may new text begin not new text end utilize deleted text begin no more than three-fourths of one percent
of the deleted text end proceeds of the taxes imposed under this section for ordinary administrative
expenses incurred in carrying out the provisions of this section. Any deleted text begin additional deleted text end
administrative expenses must be paid by the participating counties.

deleted text begin (c) The joint powers board may establish a technical advisory group that is separate
from the GEARS Committee. The group must consist of representatives of cities, counties,
or public agencies, including the Metropolitan Council. The technical advisory group
must be used solely for technical consultation purposes.
deleted text end

Sec. 5.

Minnesota Statutes 2014, section 297A.992, subdivision 6a, is amended to read:

Subd. 6a.

deleted text begin Priority of fund uses deleted text end new text begin Revenue use new text end .

The joint powers board deleted text begin shall allocate deleted text end new text begin
must use new text end all revenues new text begin received new text end from the taxes imposed under this section deleted text begin in conformance
with the following priority order:
deleted text end

deleted text begin (1) deleted text end new text begin for new text end payment of debt service deleted text begin necessary deleted text end for the fiscal year on bonds or other
obligations issued prior to January 1, deleted text begin 2011 deleted text end new text begin 2016 new text end , under subdivision 7 deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (2) as otherwise authorized under this section.
deleted text end

Sec. 6.

Minnesota Statutes 2014, section 297A.992, subdivision 7, is amended to read:

Subd. 7.

Bonds.

(a) new text begin On or before January 1, 2016, new text end the joint powers board or
any county, acting under a joint powers agreement as specified in this section, may, by
resolution, authorize, issue, and sell its bonds, notes, or other obligations for the purpose
of funding grants deleted text begin under subdivision 6 deleted text end . The joint powers board or county may also, by
resolution, issue bonds to refund the bonds issued pursuant to this subdivision.

(b) The bonds of the joint powers board must be limited obligations, payable solely
from or secured by taxes levied under this section.

(c) The bonds of any county may be limited obligations, payable solely from or
secured by taxes levied under this section. A county may also pledge its full faith, credit,
and taxing power as additional security for the bonds.

(d) Bonds may be issued in one or more series and sold without an election. The bonds
shall be secured, bear the interest rate or rates or a variable rate, have the rank or priority,
be executed in the manner, be payable in the manner, mature, and be subject to the defaults,
redemptions, repurchases, tender options, or other terms, and shall be sold in such manner
as the joint powers board, the regional railroad authority, or the county may determine.

(e) The joint powers board or any regional railroad authority or any county may
enter into and perform all contracts deemed necessary or desirable by it to issue and secure
the bonds, including an indenture of trust with a trustee within or without the state.

(f) Except as otherwise provided in this subdivision, the bonds must be issued and
sold in the manner provided under chapter 475.

deleted text begin (g) The joint powers board or any regional railroad authority wholly within the
metropolitan transportation area also may authorize, issue, and sell its bonds, notes, or
other obligations for the purposes, and in accordance with the procedures, set forth in
section 398A.07 to fund grants as provided in subdivision 6. The bonds of any regional
railroad authority may be limited obligations, payable solely from or secured by taxes
levied under this section. A regional railroad authority may also pledge its taxing powers
as additional security for the bonds.
deleted text end

Sec. 7.

Minnesota Statutes 2014, section 297A.992, subdivision 8, is amended to read:

Subd. 8.

Allocation of revenues.

After the deductions allowed in section 297A.99,
subdivision 11, the commissioner of revenue deleted text begin shall remit deleted text end new text begin must allocate new text end the proceeds of the
taxes imposed under this section on a monthly basis, deleted text begin as directed by deleted text end new text begin in the following order:
new text end

new text begin (1) an amount to new text end the joint powers board under this section new text begin that the board certifies
is necessary for payment of debt service on bonds or other obligations issued prior to
January 1, 2016;
new text end

new text begin (2) an amount to the Metropolitan Council that the council certifies equals
one-twelfth of the total net operating and capital maintenance costs for that budget year
for all transitways in which a grant award for project development, capital, or operating
expenditures had previously been provided under this section; and
new text end

new text begin (3) the remainder to the metropolitan area transit stability account in the transit
assistance fund new text end .

Sec. 8.

Minnesota Statutes 2014, section 297A.992, subdivision 10, is amended to read:

Subd. 10.

Termination of taxes.

(a) The taxes imposed under deleted text begin section 297A.99,
subdivision 1, deleted text end new text begin subdivision 2 new text end by a county that withdraws from the joint powers agreement
pursuant to subdivision 3, clause (3), shall terminate when the county has satisfied its
portion, as defined in the joint powers agreement, of all outstanding bonds or obligations
entered into new text begin under subdivision 7 new text end while the county was a member of the agreement.

(b) If the joint powers agreement under subdivision 3 is terminated, the taxes
imposed under deleted text begin section 297A.99, subdivision 1, deleted text end new text begin subdivision 2 new text end at the time of the agreement
termination will terminate when all outstanding bonds or obligations new text begin under subdivision 7 new text end
are satisfied. The auditors of the counties in which the taxes are imposed shall see to the
administration of this paragraph.

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 297A.992, subdivisions 5, 6, 11, and 12, new text end new text begin are
repealed.
new text end