SF 10

as introduced - 89th Legislature, 2015 1st Special Session (2015 - 2015) Posted on 06/15/2015 09:28am

A bill for an act
relating to transportation finance; providing supplemental funding for
transportation activities; modifying and adding tax provisions to support
transportation activities; establishing accounts; amending and adding various
provisions governing transportation policy and finance; requiring reports;
proposing an amendment to the Minnesota Constitution; authorizing the sale and
issuance of state bonds; appropriating money; amending Minnesota Statutes
2014, sections 97A.055, subdivision 2; 115A.908; 161.081, subdivision 1;
161.082, subdivision 1, by adding a subdivision; 161.083; 161.088, subdivision
5; 161.20, by adding a subdivision; 168.013, subdivision 1a; 168.33, subdivisions
2, 7, as amended; 174.42, by adding a subdivision; 174.50, by adding a
subdivision; 296A.07, subdivision 3; 296A.08, subdivision 2; 297A.815,
subdivision 3; 297A.94; 297A.992, subdivisions 1, 4, 5, 6; 297B.09, subdivision
1; Laws 2014, chapter 312, article 11, section 33; Laws 2015, chapter 75, article
1, section 3, subdivision 6; proposing coding for new law in Minnesota Statutes,
chapters 174; 219; 297A; repealing Minnesota Statutes 2014, sections 161.081,
subdivision 3; 473.4051, subdivision 2.

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

ARTICLE 1

TRANSPORTATION APPROPRIATIONS

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made
in this article, and do not have legal effect.
new text end

		new text begin 2016 new text end		new text begin 2017 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 17,000,000 new text end	new text begin $ new text end	new text begin 17,000,000 new text end	new text begin $ new text end	new text begin 34,000,000 new text end
new text begin Trunk Highway new text end		new text begin 289,935,000 new text end		new text begin 367,682,000 new text end		new text begin 657,617,000 new text end
new text begin C.S.A.H. new text end		new text begin 135,616,000 new text end		new text begin 171,981,000 new text end		new text begin 307,597,000 new text end
new text begin M.S.A.S. new text end		new text begin 52,794,000 new text end		new text begin 66,951,000 new text end		new text begin 119,745,000 new text end
new text begin Special Revenue new text end		new text begin 57,000,000 new text end		new text begin 57,000,000 new text end		new text begin 114,000,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 552,345,000 new text end	new text begin $ new text end	new text begin 680,614,000 new text end	new text begin $ new text end	new text begin 1,232,959,000 new text end

Sec. 2. new text begin TRANSPORTATION APPROPRIATIONS.
new text end

new text begin (a) The sums shown in the columns marked "Appropriations" are appropriated to
the agencies and for the purposes specified in this article. The appropriations are from
the trunk highway fund, or another named fund, and are available for the fiscal years
indicated for each purpose. Amounts for "Total Appropriation" and sums shown in the
corresponding columns marked "Appropriations by Fund" are summary only and do
not have legal effect. The figures "2016" and "2017" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2016, or
June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal
year 2017. "The biennium" is fiscal years 2016 and 2017.
new text end

new text begin (b) The appropriations, including base appropriations for fiscal years 2018 and 2019,
are in addition to appropriations under Laws 2015, chapter 75, article 1.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2016 new text end		new text begin 2017 new text end

Sec. 3. new text begin DEPARTMENT OF TRANSPORTATION. new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 552,345,000 new text end

new text begin $ new text end

new text begin 680,614,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2016 new text end	new text begin 2017 new text end
new text begin General new text end	new text begin 17,000,000 new text end	new text begin 17,000,000 new text end
new text begin Trunk Highway new text end	new text begin 289,935,000 new text end	new text begin 367,682,000 new text end
new text begin C.S.A.H. new text end	new text begin 135,616,000 new text end	new text begin 171,981,000 new text end
new text begin M.S.A.S. new text end	new text begin 52,794,000 new text end	new text begin 66,951,000 new text end
new text begin Special Revenue new text end	new text begin 57,000,000 new text end	new text begin 57,000,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Multimodal Systems new text end

new text begin (a) Transit new text end

new text begin 12,000,000 new text end

new text begin 12,000,000 new text end

new text begin This appropriation is from the general fund.
new text end

new text begin (b) Safe Routes to School new text end

new text begin 5,000,000 new text end

new text begin 5,000,000 new text end

new text begin This appropriation is from the general fund
for the safe routes to school program under
Minnesota Statutes, section 174.40.
new text end

new text begin Subd. 3. new text end new text begin State Roads new text end

new text begin (a) Operations and Maintenance new text end

new text begin 3,720,000 new text end

new text begin 8,999,000 new text end

new text begin The base appropriation for operations and
maintenance is $7,775,000 in fiscal year
2018 and $1,970,000 in fiscal year 2019.
new text end

new text begin (b) Program Planning and Delivery new text end

new text begin 23,685,000 new text end

new text begin 37,430,000 new text end

new text begin The base appropriation for program planning
and delivery is $40,680,000 in fiscal year
2018 and $36,990,000 in fiscal year 2019.
new text end

new text begin (c) State Road Construction new text end

new text begin 260,880,000 new text end

new text begin 305,817,000 new text end

new text begin The commissioner shall transfer $50,000,000
in the first year and $55,000,000 in the
second year to the county turnback account
under Minnesota Statutes, section 161.082.
These are onetime transfers.
new text end

new text begin $5,000,000 in the first year is for the
construction of noise barriers on trunk
highways.
new text end

new text begin The base appropriation for state road
construction is $291,118,000 in fiscal year
2018 and $318,695,000 in fiscal year 2019.
new text end

new text begin (d) Highway Debt Service new text end

new text begin 1,650,000 new text end

new text begin 15,436,000 new text end

new text begin This appropriation is for transfer to the state
bond fund.
new text end

new text begin Subd. 4. new text end new text begin Local Roads new text end

new text begin (a) County State-Aids new text end

new text begin 135,616,000 new text end

new text begin 171,981,000 new text end

new text begin This appropriation is from the county
state-aid highway fund under Minnesota
Statutes, section 161.081, and chapter 162,
and is available until spent.
new text end

new text begin (b) Municipal State-Aids new text end

new text begin 52,794,000 new text end

new text begin 66,951,000 new text end

new text begin This appropriation is from the municipal
state-aid street fund under Minnesota
Statutes, chapter 162, and is available until
spent.
new text end

new text begin (c) City Streets and Bridges new text end

new text begin 57,000,000 new text end

new text begin 57,000,000 new text end

new text begin $28,500,000 in each year is appropriated from
the small city streets and bridges account in
the special revenue fund under Minnesota
Statutes, section 174.54, subdivision 1.
new text end

new text begin $28,500,000 in each year is appropriated from
the larger city streets and bridges account in
the special revenue fund under Minnesota
Statutes, section 174.54, subdivision 2.
new text end

Sec. 4.

Laws 2015, chapter 75, article 1, section 3, subdivision 6, is amended to read:

Subd. 6. Transfers

With the approval of the commissioner of
management and budget, the commissioner
of transportation may transfer unencumbered
balances among the appropriations from the
trunk highway fund and the state airports
fund made in this section. No transfer
may be made from the appropriations for
state road construction or for debt service.
Transfers under this rider may not be made
between funds. Transfers under this rider
must be reported immediately to the chairs
and ranking minority members of the
legislative committees with jurisdiction over
transportation finance.

deleted text begin The commissioner of transportation shall
transfer from the flexible highway account in
the county state-aid highway fund the entire
amount in each year to the county turnback
account in the county state-aid highway
fund. The funds transferred are for highway
turnback purposes under Minnesota Statutes,
section 161.081, subdivision 3.
deleted text end

ARTICLE 2

TRUNK HIGHWAY BONDING

Section 1. new text begin BOND APPROPRIATIONS. new text end

new text begin The sums shown in the column under "Appropriations" are appropriated from the
bond proceeds account in the trunk highway fund to the state agencies or officials indicated,
to be spent for public purposes. Appropriations of bond proceeds must be spent as
authorized by the Minnesota Constitution, articles XI and XIV. Unless otherwise specified,
money appropriated in this article for a capital program or project may be used to pay state
agency staff costs that are attributed directly to the capital program or project in accordance
with accounting policies adopted by the commissioner of management and budget.
new text end

new text begin SUMMARY new text end
new text begin Department of Transportation new text end	new text begin $ new text end	new text begin 1,500,000,000 new text end
new text begin Department of Management and Budget new text end		new text begin 1,500,000 new text end
new text begin TOTAL new text end	new text begin $ new text end	new text begin 1,501,500,000 new text end

new text begin APPROPRIATIONS new text end

Sec. 2. new text begin DEPARTMENT OF TRANSPORTATION CORRIDORS OF COMMERCE new text end

new text begin $ new text end

new text begin 800,000,000 new text end

new text begin (a) The appropriation in this section is
to the commissioner of transportation for
the corridors of commerce program under
Minnesota Statutes, section 161.088, and
is available in the amount of $80,000,000
in each fiscal year from 2016 to 2025. The
commissioner may use up to 17 percent of
the amount each year for program delivery.
new text end

new text begin (b) In any fiscal year covered by this
appropriation, the commissioner may
identify projects based on previous selection
processes or may perform a new selection.
new text end

new text begin (c) The appropriation in this section cancels
as specified under Minnesota Statutes, section
16A.642, except that the commissioner of
management and budget shall count the start
of authorization for issuance of state bonds
as the first day of the fiscal year during
which the bonds are available to be issued as
specified under paragraph (a), and not as the
date of enactment of this section.
new text end

Sec. 3. new text begin TRANSPORTATION ECONOMIC DEVELOPMENT PROGRAM new text end

new text begin $ new text end

new text begin 200,000,000 new text end

new text begin (a) This appropriation is for the transportation
economic development program under
Minnesota Statutes, section 174.12, and is
available in the amount of $20,000,000 in
each fiscal year from 2016 to 2025. The
commissioner may use up to 17 percent of
the amount each year for program delivery.
new text end

new text begin (b) The appropriation in this section cancels
as specified under Minnesota Statutes, section
16A.642, except that the commissioner of
management and budget shall count the start
of authorization for issuance of state bonds
as the first day of the fiscal year during
which the bonds are available to be issued as
specified under paragraph (a), and not as the
date of enactment of this section.
new text end

Sec. 4. new text begin STATE ROAD CONSTRUCTION new text end

new text begin $ new text end

new text begin 500,000,000 new text end

new text begin This appropriation is for the construction,
reconstruction, and improvement of trunk
highways, including design-build contracts.
This includes the cost of actual payment to
landowners for lands acquired for highway
rights-of-way, payment to lessees, interest
subsidies, and relocation expenses. This
appropriation is available in the amount of
$50,000,000 in each fiscal year from 2016 to
2025. The commissioner may use up to 17
percent of the amount each year for program
delivery.
new text end

Sec. 5. new text begin BOND SALE EXPENSES new text end

new text begin $ new text end

new text begin 1,500,000 new text end

new text begin This appropriation is to the commissioner
of management and budget for bond sale
expenses under Minnesota Statutes, sections
16A.641, subdivision 8; and 167.50,
subdivision 4, and is available in the amount
of $150,000 in each fiscal year from 2016 to
2025.
new text end

Sec. 6. new text begin BOND SALE AUTHORIZATION.
new text end

new text begin To provide the money appropriated in this article from the bond proceeds account in
the trunk highway fund, the commissioner of management and budget shall sell and issue
bonds of the state in an amount up to $1,501,500,000 in the manner, upon the terms, and
with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the
Minnesota Constitution, article XIV, section 11, at the times and in the amounts requested
by the commissioner of transportation. The proceeds of the bonds, except accrued interest
and any premium received from the sale of the bonds, must be deposited in the bond
proceeds account in the trunk highway fund.
new text end

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective July 1, 2015.
new text end

ARTICLE 3

TAX ON PETROLEUM AND OTHER FUELS

Section 1.

Minnesota Statutes 2014, section 296A.07, subdivision 3, is amended to read:

Subd. 3.

Rate of tax.

The gasoline excise tax is imposed at the following rates:

(1) E85 is taxed at the rate of deleted text begin 17.75 deleted text end new text begin 24.85 new text end cents per gallon;

(2) M85 is taxed at the rate of deleted text begin 14.25 deleted text end new text begin 19.95 new text end cents per gallon; and

(3) all other gasoline is taxed at the rate of deleted text begin 25 deleted text end new text begin 35 new text end cents per gallon.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2015, and applies to all
gasoline, undyed diesel fuel, and special fuel in distributor storage on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2014, section 296A.08, subdivision 2, is amended to read:

Subd. 2.

Rate of tax.

The special fuel excise tax is imposed at the following rates:

(a) Liquefied petroleum gas or propane is taxed at the rate of deleted text begin 18.75 deleted text end new text begin 26.25 new text end cents
per gallon.

(b) Liquefied natural gas is taxed at the rate of deleted text begin 15 deleted text end new text begin 21 new text end cents per gallon.

(c) Compressed natural gas is taxed at the rate of deleted text begin $2.174 deleted text end new text begin $3.044 new text end per thousand cubic
feet; or deleted text begin 25 deleted text end new text begin 35 new text end cents per gasoline equivalent. For purposes of this paragraph, "gasoline
equivalent," as defined by the National Conference on Weights and Measures, is 5.66
pounds of natural gas.

(d) All other special fuel is taxed at the same rate as the gasoline excise tax as
specified in section 296A.07, subdivision 2. The tax is payable in the form and manner
prescribed by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2015, and applies to all
special fuel in distributor storage on or after that date.
new text end

ARTICLE 4

DEDICATION OF SALES TAX REVENUES

Section 1. new text begin CONSTITUTIONAL AMENDMENT PROPOSED.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to the people. If the
amendment is adopted, article XIV, section 5, will read:
new text end

Sec. 5.

There is hereby created a highway user tax distribution fund to be used solely
for highway purposes as specified in this article. The fund consists of the proceeds of any
taxes authorized by sections 9 and 10 of this article new text begin , and the revenue as specified in section
14 of this article new text end . The net proceeds of the taxes shall be apportioned: 62 percent to the
trunk highway fund; 29 percent to the county state-aid highway fund; nine percent to the
municipal state-aid street fund. Five percent of the net proceeds of the highway user tax
distribution fund may be set aside and apportioned by law to one or more of the three
foregoing funds. The balance of the highway user tax distribution fund shall be transferred
to the trunk highway fund, the county state-aid highway fund, and the municipal state-aid
street fund in accordance with the percentages set forth in this section. No change in the
apportionment of the five percent may be made within six years of the last previous change.

new text begin a section shall be added to article XIV, to read:
new text end

new text begin Sec. 14. new text end

new text begin Dedicated sales tax revenues. The revenues from sales taxes imposed by the
state on motor vehicle repair and replacement parts must be deposited in the highway user
tax distribution fund to be used solely for highway purposes.
new text end

Sec. 2. new text begin SUBMISSION TO VOTERS.
new text end

new text begin (a) The constitutional amendment proposed in section 1 must be presented to the
people at the 2016 general election. The question submitted must be:
new text end

new text begin "Shall the Minnesota Constitution be amended so that any sales tax revenues
generated by motor vehicle repair and replacement parts are dedicated solely for highway
purposes? A "yes" answer will not raise your taxes.
new text end

	new text begin Yes . new text end
	new text begin No . new text end	new text begin " new text end

new text begin (b) The title required under Minnesota Statutes, section 204D.15, subdivision 1, of
the question submitted to the people under paragraph (a) shall be "Motor Vehicle-Related
Sales Taxes Dedicated for Highway Purposes."
new text end

Sec. 3.

Minnesota Statutes 2014, section 97A.055, subdivision 2, is amended to read:

Subd. 2.

Receipts.

The commissioner of management and budget shall credit to the
game and fish fund all money received under the game and fish laws and all income from
state lands acquired by purchase or gift for game or fish purposes, including receipts from:

(1) licenses and permits issued;

(2) fines and forfeited bail;

(3) sales of contraband, wild animals, and other property under the control of the
division;

(4) fees from advanced education courses for hunters and trappers;

(5) reimbursements of expenditures by the division;

(6) contributions to the division; and

(7) revenue credited to the game and fish fund under section 297A.94, paragraph
deleted text begin (e) deleted text end new text begin (f) new text end , clause (1).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 4.

Minnesota Statutes 2014, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for
the construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment
was made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of management and budget shall certify to the commissioner the date
on which the project received the conditional commitment. The amount deposited in
the loan guaranty account must be reduced by any refunds and by the costs incurred by
the Department of Revenue to administer and enforce the assessment and collection of
the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties,
derived from the taxes imposed on sales and purchases included in section 297A.61,
subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them
as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5, for the previous calendar year.

(e) new text begin The commissioner shall deposit in the highway user tax distribution fund the
revenues from sales tax attributed to sales and purchases of motor vehicle repair and
replacement parts, including: (i) all parts, tires, accessories, and equipment incorporated
into or affixed to a motor vehicle as part of the motor vehicle maintenance or repair;
and (ii) paint, oil, and other fluids that remain on or in the motor vehicle as part of the
motor vehicle maintenance or repair.
new text end

new text begin (f) new text end 72.43 percent of the revenues, including interest and penalties, transmitted to
the commissioner under section 297A.65, must be deposited by the commissioner in the
state treasury as follows:

(1) 50 percent of the receipts must be deposited in the heritage enhancement account
in the game and fish fund, and may be spent only on activities that improve, enhance, or
protect fish and wildlife resources, including conservation, restoration, and enhancement
of land, water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and
may be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and
may be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants; and

(5) two percent of the receipts must be deposited in the natural resources fund,
and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and
Conservatory, and the Duluth Zoo.

deleted text begin (f) deleted text end new text begin (g) new text end The revenue dedicated under paragraph deleted text begin (e) deleted text end new text begin (f) new text end may not be used as a substitute
for traditional sources of funding for the purposes specified, but the dedicated revenue
shall supplement traditional sources of funding for those purposes. Land acquired with
money deposited in the game and fish fund under paragraph deleted text begin (e) deleted text end new text begin (f) new text end must be open to public
hunting and fishing during the open season, except that in aquatic management areas or
on lands where angling easements have been acquired, fishing may be prohibited during
certain times of the year and hunting may be prohibited. At least 87 percent of the money
deposited in the game and fish fund for improvement, enhancement, or protection of fish
and wildlife resources under paragraph deleted text begin (e) deleted text end new text begin (f) new text end must be allocated for field operations.

deleted text begin (g) deleted text end new text begin (h) new text end The revenues deposited under paragraphs (a) to deleted text begin (f) deleted text end new text begin (g) new text end do not include
the revenues, including interest and penalties, generated by the sales tax imposed
under section 297A.62, subdivision 1a, which must be deposited as provided under the
Minnesota Constitution, article XI, section 15.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

ARTICLE 5

VEHICLE REGISTRATION TAX

Section 1.

Minnesota Statutes 2014, section 168.013, subdivision 1a, is amended to read:

Subd. 1a.

Passenger automobile; hearse.

(a) On passenger automobiles as defined
in section 168.002, subdivision 24, and hearses, except as otherwise provided, the tax
shall be new text begin an amount equal to a combination of the following: new text end $10 new text begin for those vehicles with
registration periods beginning on or before June 30, 2018; and $20 for those vehicles
with registration periods on or after July 1, 2018, new text end plus an additional tax equal to deleted text begin 1.25 deleted text end new text begin a
percentage of 1.5 new text end percent of the base value new text begin as specified in paragraph (h) new text end .

(b) Subject to the classification provisions herein, "base value" means the
manufacturer's suggested retail price of the vehicle including destination charge using list
price information published by the manufacturer or determined by the registrar if no
suggested retail price exists, and shall not include the cost of each accessory or item of
optional equipment separately added to the vehicle and the suggested retail price.

(c) If the manufacturer's list price information contains a single vehicle identification
number followed by various descriptions and suggested retail prices, the registrar shall
select from those listings only the lowest price for determining base value.

(d) If unable to determine the base value because the vehicle is specially constructed,
or for any other reason, the registrar may establish such value upon the cost price to the
purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales
or use tax or any local sales or other local tax.

(e) The registrar shall classify every vehicle in its proper base value class as follows:

	FROM		TO
$	0		$ 199.99
$	200		$ 399.99

and thereafter a series of classes successively set in brackets having a spread of $200
consisting of such number of classes as will permit classification of all vehicles.

(f) The base value for purposes of this section shall be the middle point between
the extremes of its class.

(g) The registrar shall establish the base value, when new, of every passenger
automobile and hearse registered prior to the effective date of Extra Session Laws 1971,
chapter 31, using list price information published by the manufacturer or any nationally
recognized firm or association compiling such data for the automotive industry. If unable
to ascertain the base value of any registered vehicle in the foregoing manner, the registrar
may use any other available source or method. The registrar shall calculate tax using base
value information available to dealers and deputy registrars at the time the application for
registration is submitted. The tax on all previously registered vehicles shall be computed
upon the base value thus determined taking into account the depreciation provisions of
paragraph (h).

(h) The annual additional tax must be computed upon deleted text begin a deleted text end new text begin the specified new text end percentage of
new text begin 1.5 percent of new text end the base value as follows: during the first year of vehicle life, upon 100
percent deleted text begin of the base value deleted text end ; for the second year, 90 percent deleted text begin of such value deleted text end ; for the third year,
80 percent deleted text begin of such value deleted text end ; for the fourth year, 70 percent deleted text begin of such value deleted text end ; for the fifth year, 60
percent deleted text begin of such value deleted text end ; for the sixth year, 50 percent deleted text begin of such value deleted text end ; for the seventh year,
40 percent deleted text begin of such value deleted text end ; for the eighth year, 30 percent deleted text begin of such value deleted text end ; for the ninth
year, 20 percent deleted text begin of such value deleted text end ; for the tenth year, ten percent deleted text begin of such value deleted text end ; for the 11th
and each succeeding year, the sum of $25.

(i) In no event shall the annual additional tax be less than $25.

deleted text begin (j) For any vehicle previously registered in Minnesota, the annual additional tax
due under this subdivision must not exceed the smallest amount of annual additional
tax previously paid or due on the vehicle.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to any tax for a registration period that begins on or after September 1, 2015.
new text end

ARTICLE 6

OTHER TAXES, FEES, AND TRANSFERS

Section 1.

Minnesota Statutes 2014, section 115A.908, is amended to read:

115A.908 MOTOR VEHICLE TRANSFER FEE.

Subdivision 1.

Fee charged.

new text begin (a) new text end A fee of $10 shall be charged on the initial
registration and each subsequent transfer of title within the state, other than transfers for
resale purposes, of every motor vehicle weighing more than 1,000 pounds. The fee shall
be collected by the commissioner of public safety. Registration plates or certificates
of title may not be issued by the commissioner of public safety for the ownership or
operation of a motor vehicle subject to the transfer fee unless the fee is paid. The fee may
not be charged on the transfer of:

(1) previously registered vehicles if the transfer is to the same person;

(2) vehicles subject to the conditions specified in section 297A.70, subdivision 2; or

(3) vehicles purchased in another state by a resident of another state if more than 60
days have elapsed after the date of purchase and the purchaser is transferring title to this
state and has become a resident of this state after the purchase.

new text begin (b) A surcharge of $10 is imposed on each fee charged under paragraph (a).
new text end

Subd. 2.

Deposit of revenue.

new text begin (a) Fee new text end revenue collected under this section shall be
credited to the environmental fund.

new text begin (b) The commissioner of transportation shall deposit the proceeds of the surcharge
as follows:
new text end

new text begin (1) 50 percent in the small city streets and bridges account under section 174.54,
subdivision 1; and
new text end

new text begin (2) 50 percent in the larger city streets and bridges account under section 174.54,
subdivision 2.
new text end

Sec. 2.

Minnesota Statutes 2014, section 161.081, subdivision 1, is amended to read:

Subdivision 1.

Distribution of five percent.

deleted text begin (a) deleted text end Pursuant to article 14, section 5, of
the Constitution, five percent of the net highway user tax distribution fund is set aside, and
apportioned deleted text begin to the county state-aid highway fund.
deleted text end

deleted text begin (b) That apportionment is further distributed deleted text end as follows:

(1) deleted text begin 30.5 percent to the town road account created in section 162.081;
deleted text end

deleted text begin (2) 16 percent to the town bridge account, which is created in the state treasury deleted text end new text begin 56.5
percent to the county state-aid highway fund, consisting of: (i) 30.5 percent to the town
road account created in section 162.081; (ii) 16 percent to the town bridge account created
in the state treasury; and (iii) ten percent to the county municipal accounts for purposes
described in section 162.08 new text end ; and

deleted text begin (3) 53.5 percent to the flexible highway account created in subdivision 3 deleted text end new text begin (2) 43.5
percent to the municipal state-aid street fund new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 3.

Minnesota Statutes 2014, section 161.082, subdivision 1, is amended to read:

Subdivision 1.

new text begin Creation of account; new text end rules.

new text begin (a) The county turnback account is
created in the state treasury, consisting of money allotted or appropriated to the account
from the trunk highway fund or from any other source that will be used for the restoration
of trunk highways that have reverted or that will revert to counties.
new text end

new text begin (b) new text end Except as provided in this section deleted text begin and in section 161.081 deleted text end , all money accruing
to the county turnback account shall be expended in accordance with rules of the
commissioner of transportation in paying a county for the restoration of former trunk
highways, or portions thereof, that have reverted to the county in accordance with law, and
have become a part of the county state-aid highway system.

new text begin (c) The legislature finds that restoration of trunk highways that have reverted or
will revert to counties is a trunk highway purpose within the meaning of the Minnesota
Constitution, article XIV, section 2.
new text end

Sec. 4.

Minnesota Statutes 2014, section 161.082, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Budget submission. new text end

new text begin As part of each biennial budget submission to the
legislature, the commissioner shall include a request for an appropriation to the county
turnback account.
new text end

Sec. 5.

Minnesota Statutes 2014, section 161.083, is amended to read:

161.083 MUNICIPAL TURNBACK ACCOUNT, EXPENDITURE.

new text begin Subdivision 1. new text end

new text begin Creation of account. new text end

new text begin (a) The municipal turnback account is created
in the state treasury, consisting of money allotted or appropriated to the account from the
trunk highway fund or from any other source that will be used for the restoration of trunk
highways that have reverted or that will revert to cities.
new text end

new text begin (b) new text end Except as deleted text begin hereinafter deleted text end provided new text begin in this section new text end , all money accruing to the
municipal turnback account shall be expended in accordance with rules of the
commissioner of transportation in paying a municipality having a population of 5,000 or
more for the reconstruction and improvement of former trunk highways, or portions
thereof, that have reverted to such municipality in accordance with law, and have become
a part of the municipal state-aid street system.

new text begin (c) The legislature finds that restoration of trunk highways that have reverted or
will revert to cities is a trunk highway purpose within the meaning of the Minnesota
Constitution, article XIV, section 2.
new text end

new text begin Subd. 2. new text end

new text begin Biennial budget submission. new text end

new text begin As part of each biennial budget submission
to the legislature, the commissioner shall include a request for an appropriation to the
municipal turnback account.
new text end

Sec. 6.

Minnesota Statutes 2014, section 168.33, subdivision 2, is amended to read:

Subd. 2.

Deputy registrars.

(a) The commissioner may appoint, and for cause
discontinue, a deputy registrar for any statutory or home rule charter city as the public
interest and convenience may require, without regard to whether the county auditor of
the county in which the city is situated has been appointed as the deputy registrar for the
county or has been discontinued as the deputy registrar for the county, and without regard
to whether the county in which the city is situated has established a county license bureau
that issues motor vehicle licenses as provided in section 373.32.

(b) The commissioner may appoint, and for cause discontinue, a deputy registrar
for any statutory or home rule charter city as the public interest and convenience may
require, if the auditor for the county in which the city is situated chooses not to accept
appointment as the deputy registrar for the county or is discontinued as a deputy registrar,
or if the county in which the city is situated has not established a county license bureau
that issues motor vehicle licenses as provided in section 373.32.

(c) The commissioner may appoint, and for cause discontinue, the county auditor of
each county as a deputy registrar.

(d) Despite any other provision, a person other than a county auditor or a director
of a county license bureau, who was appointed by the registrar before August 1, 1976,
as a deputy registrar for any statutory or home rule charter city, may continue to serve
as deputy registrar and may be discontinued for cause only by the commissioner. The
county auditor who appointed the deputy registrars is responsible for the acts of deputy
registrars appointed by the auditor.

(e) Each deputy, before entering upon the discharge of duties, shall take and
subscribe an oath to faithfully discharge the duties and to uphold the laws of the state.

(f) If a deputy registrar appointed under this subdivision is not an officer or employee
of a county or statutory or home rule charter city, the deputy shall in addition give bond to
the state in the sum of $10,000, or a larger sum as may be required by the commissioner,
conditioned upon the faithful discharge of duties as deputy registrar.

(g) A corporation governed by chapter 302A or 317A may be appointed a deputy
registrar. Upon application by an individual serving as a deputy registrar and the giving of
the requisite bond as provided in this subdivision, personally assured by the individual or
another individual approved by the commissioner, a corporation named in an application
then becomes the duly appointed and qualified successor to the deputy registrar.

(h) Each deputy registrar appointed under this subdivision shall keep and maintain
office locations approved by the commissioner for the registration of vehicles and the
collection of taxes and fees on vehicles.

(i) The deputy registrar shall keep records and make reports to the commissioner as
the commissioner requires. The records must be maintained at the offices of the deputy
registrar. The records and offices of the deputy registrar must at all times be open to the
inspection of the commissioner or the commissioner's agents. The deputy registrar shall
report to the commissioner by the next working day following receipt all registrations
made and taxes and fees collected by the deputy registrar.

(j) The filing deleted text begin fee deleted text end new text begin fees new text end imposed under subdivision 7 new text begin , paragraph (a), clauses (1) and
(3), new text end must be deposited in the treasury of the place for which appointed or, if not a public
official, a deputy shall retain the filing deleted text begin fee deleted text end new text begin fees new text end , but the registration tax deleted text begin and deleted text end new text begin , new text end any additional
fees for delayed registration deleted text begin the deputy registrar has collected deleted text end new text begin , and the surcharge imposed
under subdivision 7, paragraph (a), clause (2), new text end the deputy registrar shall deposit by the next
working day following receipt in an approved state depository to the credit of the state
through the commissioner of management and budget. The place for which the deputy
registrar is appointed through its governing body must provide the deputy registrar with
facilities and personnel to carry out the duties imposed by this subdivision if the deputy
is a public official. In all other cases, the deputy shall maintain a suitable facility for
serving the public.

Sec. 7.

Minnesota Statutes 2014, section 168.33, subdivision 7, as amended by Laws
2015, chapter 75, article 2, section 18, is amended to read:

Subd. 7.

Filing fees new text begin and surcharge new text end ; allocations.

(a) In addition to all other
statutory fees and taxes deleted text begin , a filing fee of deleted text end :

(1) new text begin a new text end $6 new text begin filing fee new text end is imposed on every vehicle registration renewal, excluding pro
rate transactions; deleted text begin and
deleted text end

(2) new text begin a $10 surcharge is imposed on the fee for every vehicle registration renewal,
excluding pro rate transactions; and
new text end

new text begin (3) a new text end $10 new text begin filing fee new text end is imposed on every other type of vehicle transaction, including
motor carrier fuel licenses under sections 168D.05 and 168D.06, and pro rate transactions.

(b) Notwithstanding paragraph (a):

(1) a filing fee may not be charged for a document returned for a refund or for
a correction of an error made by the Department of Public Safety, a dealer, or a deputy
registrar; and

(2) no filing fee or other fee may be charged for the permanent surrender of a title
for a vehicle.

(c) The filing fee new text begin and surcharge new text end must be shown as a separate item on all registration
renewal notices sent out by the commissioner.

(d) The statutory fees and taxes, and the filing fees new text begin and surcharge new text end imposed under
paragraph (a) may be paid by credit card or debit card. The deputy registrar may collect a
surcharge on the statutory fees, taxes, new text begin statutory surcharge, new text end and filing fee not greater than
the cost of processing a credit card or debit card transaction, in accordance with emergency
rules established by the commissioner of public safety. The surcharge new text begin authorized by this
paragraph new text end must be used to pay the cost of processing credit and debit card transactions.

(e) The fees new text begin and surcharge new text end collected under deleted text begin this subdivision deleted text end new text begin paragraph (a) new text end by the
department must be allocated as follows:

(1) of the fees collected under paragraph (a), clause (1):

(i) $4.50 must be deposited in the vehicle services operating account; and

(ii) $1.50 must be deposited:

(A) in the driver and vehicle services technology account until sufficient funds have
been deposited in that account to cover all costs of administration, development, and
initial full deployment of the driver and vehicle services information system; and

(B) after completion of the deposit of funds under subitem (A) in the vehicle
services operating account; and

(2) new text begin of the surcharge collected under paragraph (a), clause (2):
new text end

new text begin (i) 50 percent must be deposited in the small city streets and bridges account under
section 174.54, subdivision 1; and
new text end

new text begin (ii) 50 percent must be deposited in the larger city streets and bridges account under
section 174.54, subdivision 2; and
new text end

new text begin (3) new text end of the fees collected under paragraph (a), clause deleted text begin (2) deleted text end new text begin (3) new text end :

(i) $3.50 must be deposited in the general fund;

(ii) $5.00 must be deposited in the vehicle services operating account; and

(iii) $1.50 must be deposited:

(A) in the driver and vehicle services technology account until sufficient funds have
been deposited in that account to cover all costs of administration, development, and
initial full deployment of the driver and vehicle services information system; and

(B) after completion of the deposit of funds under subitem (A) in the vehicle services
operating account.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

new text begin [174.54] CITY STREETS AND BRIDGES ACCOUNTS.
new text end

new text begin Subdivision 1. new text end

new text begin Small city streets and bridges account. new text end

new text begin A small city streets and
bridges account is created as a special revenue account and established in the state treasury,
consisting of money allotted, appropriated, or transferred through gift or grant to the
account. Money in the account must be appropriated to the commissioner of transportation
by law and apportioned among all the cities in the state that are not eligible to receive
municipal state aid and do not receive municipal state aid. The commissioner shall
apportion the money so that of the total amount each city receives the percentage that its
population bears to the total population of all small cities in this state. Money apportioned
under this section must be used for construction, reconstruction, improvement, operations,
and maintenance of city streets and bridges.
new text end

new text begin Subd. 2. new text end

new text begin Larger city streets and bridges account. new text end

new text begin A larger city streets and
bridges account is created as a special revenue account and established in the state
treasury, consisting of money allotted, appropriated, or transferred through gift or grant
to the account. Money in the account must be appropriated to the commissioner of
transportation by law and apportioned among all the cities in the state that are eligible
to receive municipal state aid. The commissioner shall apportion: (1) 50 percent of the
money so that of that amount each city receives the percentage that its population bears to
the total population of all cities that are eligible to receive municipal state aid; and (2)
50 percent of the money so that of that amount each city receives the percentage that the
city's money needs, as determined by the commissioner under section 162.13, subdivision
3, bears to the total money needs of all cities eligible to receive municipal state aid.
Money apportioned under this section must be used for construction, reconstruction,
improvement, operations, and maintenance of city streets and bridges.
new text end

Sec. 9.

Minnesota Statutes 2014, section 297A.815, subdivision 3, is amended to read:

Subd. 3.

Motor vehicle lease sales tax revenue.

(a) For purposes of this subdivision,
"net revenue" means an amount equal to the revenues, including interest and penalties,
collected under this section, during the fiscal year deleted text begin ; less $32,000,000 in each fiscal year deleted text end .

(b) On or before June 30 of each fiscal year, the commissioner of revenue shall
estimate the amount of the deleted text begin net revenue deleted text end new text begin revenues new text end for the current fiscal year new text begin , including
interest and penalties collected during the fiscal year under this section new text end .

(c) On or after July 1 of the subsequent fiscal year, the commissioner of management
and budget shall transfer the deleted text begin net revenue deleted text end new text begin revenues new text end as estimated in paragraph (b) from the
general fund deleted text begin , as follows:
deleted text end

deleted text begin (1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter deleted text end to
the county state-aid highway fund.

new text begin (d) new text end Notwithstanding any other law to the contrary, the commissioner of transportation
shall allocate the funds transferred under deleted text begin this clause deleted text end new text begin paragraph (c) new text end to the counties in the
metropolitan area, as defined in section 473.121, subdivision 4, deleted text begin excluding the counties of
Hennepin and Ramsey, deleted text end so that each county shall receive of such amount the percentage
that its population, as defined in section 477A.011, subdivision 3, estimated or established
by July 15 of the year prior to the current calendar year, bears to the total population of the
counties receiving funds under this clause deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (2) the remainder to the greater Minnesota transit account. deleted text end new text begin For the purposes of the
calculation in this paragraph, the population of Hennepin County shall first be multiplied
by 0.25, and the population of Ramsey County shall first be multiplied by 0.5.
new text end

new text begin (e) The revenues transferred under this subdivision do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section
297A.62, subdivision 1a, which must be deposited as provided under the Minnesota
Constitution, article XI, section 15.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraphs (a) to (c) are effective January 1, 2016, and
paragraph (d) is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2014, section 297B.09, subdivision 1, is amended to read:

Subdivision 1.

Deposit of revenues.

(a) Money collected and received under this
chapter must be deposited as provided in this subdivision.

(b) deleted text begin 60 deleted text end new text begin 58 new text end percent of the money collected and received must be deposited in the
highway user tax distribution fund, deleted text begin 36 deleted text end new text begin 34 new text end percent must be deposited in the metropolitan
area transit account under section 16A.88, and deleted text begin four deleted text end new text begin eight new text end percent must be deposited in the
greater Minnesota transit account under section 16A.88.

deleted text begin (c) It is the intent of the legislature that the allocations under paragraph (b) remain
unchanged for fiscal year 2012 and all subsequent fiscal years.
deleted text end

Sec. 11. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 161.081, subdivision 3, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

ARTICLE 7

METROPOLITAN TRANSIT IMPROVEMENT AREA 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;

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

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

deleted text begin (4) deleted text end "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 deleted text begin ; and deleted text end new text begin .
new 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 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, who must have
voting rights, subject to subdivision 3, clause (4). The joint powers board has the powers
and duties provided in this section and section 471.59.

(b) The joint powers board may utilize no more than three-fourths of one percent of
the proceeds of the taxes imposed under this section for ordinary administrative expenses
incurred in carrying out the provisions of this section. Any additional administrative
expenses must be paid by the participating counties.

(c) The joint powers board may establish a technical advisory group deleted text begin that is separate
from the GEARS Committee deleted text end . 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.

Sec. 3.

Minnesota Statutes 2014, section 297A.992, subdivision 5, is amended to read:

Subd. 5.

Grant application and awards deleted text begin ; Grant Evaluation and Ranking System
(GEARS) Committee deleted text end .

(a) The joint powers board shall establish a grant application
process and identify the amount of available funding for grant awards. Grant applications
must be submitted in a form prescribed by the joint powers board. An applicant must
provide, in addition to all other information required by the joint powers board, the
estimated cost of the project, the amount of the grant sought, possible sources of funding
in addition to the grant sought, and identification of any federal funds that will be utilized
if the grant is awarded. A grant application seeking transit capital funding must identify
the source of money necessary to operate the transit improvement.

(b) The joint powers board shall establish a timeline and procedures for the award of
grants, and may award grants only to the state and political subdivisions. The board shall
define objective criteria for the award of grants, which must include, but not be limited to,
consistency with the most recent version of the transportation policy plan adopted by the
Metropolitan Council under section 473.146. The joint powers board shall maximize the
availability and use of federal funds in projects funded under this section.

deleted text begin (c) The joint powers board shall establish a GEARS Committee, which must consist
of:
deleted text end

deleted text begin (1) one county commissioner from each county that is in the metropolitan
transportation area, appointed by its county board;
deleted text end

deleted text begin (2) one elected city representative from each county that is in the metropolitan
transportation area;
deleted text end

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

deleted text begin (4) the chair of the Metropolitan Council Transportation Committee.
deleted text end

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

deleted text begin (e) The committee shall evaluate grant applications following objective criteria
established by the joint powers board, and must provide to the joint powers board a
selection list of transportation projects that includes a priority ranking.
deleted text end

deleted text begin (f) deleted text end new text begin (c) new text end A grant award for a transit project located within the metropolitan area, as
defined in section 473.121, subdivision 2, may be funded only after the Metropolitan
Council reviews the project for consistency with the transit portion of the Metropolitan
Council policy plan and one of the following occurs:

(1) the Metropolitan Council finds the project to be consistent;

(2) the Metropolitan Council initially finds the project to be inconsistent, but after a
good faith effort to resolve the inconsistency through negotiations with the joint powers
board, agrees that the grant award may be funded; or

(3) the Metropolitan Council finds the project to be inconsistent, and submits the
consistency issue for final determination to a panel, which determines the project to be
consistent. The panel is composed of a member appointed by the chair of the Metropolitan
Council, a member appointed by the joint powers board, and a member agreed upon by
both the chair and the joint powers board.

deleted text begin (g) deleted text end new text begin (d) new text end Grants must be funded by the proceeds of the taxes imposed under this
section new text begin and under section 297A.9925 new text end , bonds, notes, or other obligations issued by the
joint powers board under subdivision 7.

deleted text begin (h) Notwithstanding the provisions of this section except subdivision 6a, of
the revenue collected under this section, the joint powers board shall allocate to the
Metropolitan Council, in fiscal years 2012 and 2013, an amount not less than 75 percent of
the net cost of operations for those transitways that were receiving metropolitan sales tax
funds through an operating grant agreement on June 30, 2011.
deleted text end

deleted text begin (i) The Metropolitan Council shall expend any funds allocated under paragraph (h)
for the operations of the specified transitways solely within those counties that are in the
metropolitan transportation area.
deleted text end

deleted text begin (j) deleted text end new text begin (e) new text end Nothing in deleted text begin paragraph (h) or (i) deleted text end new text begin this section new text end prevents grant awards to
the Metropolitan Council for capital and operating assistance for transitways and
park-and-ride facilities.

Sec. 4.

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

Subd. 6.

Allocation new text begin and use new text end of grant awards.

(a) The board must allocate grant
awards only for the following transit purposes:

(i) capital improvements to transitways, including, but not limited to, commuter rail
rolling stock, light rail vehicles, and transitway buses;

(ii) capital costs for park-and-ride facilities, as defined in section 174.256,
subdivision 2;

(iii) feasibility studies, planning, alternatives analyses, environmental studies,
engineering, property acquisition for transitway purposes, and construction of transitways;
and

(iv) operating assistance for transitways.

(b) The joint powers board must annually award grants to each minimum guarantee
county in an amount no less than the amount of sales tax revenue collected within that
county.

new text begin (c) The joint powers board shall, over the duration of the Metropolitan Council's
2030 plan, make reasonable efforts to award grants so as to achieve geographic balance
within the region.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end No more than 1.25 percent of the total awards may be annually allocated
for planning, studies, design, construction, maintenance, and operation of pedestrian
programs and bicycle programs and pathways.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to grant awards for calendar year 2016 and later.
new text end

Sec. 5.

new text begin [297A.9925] METROPOLITAN TRANSIT IMPROVEMENT AREA
TRANSIT SALES AND USE TAX; RATE; IMPOSITION; USES; PRIORITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have
the meanings given them:
new text end

new text begin (1) "metropolitan transit improvement area" or "area" means the counties of Anoka,
Carver, Dakota, Hennepin, Ramsey, Scott, and Washington;
new text end

new text begin (2) "Metropolitan Council" or "council" means the Metropolitan Council established
by section 473.123; and
new text end

new text begin (3) "local governmental unit" means any county, city, town, school district, special
district, or other political subdivision or public corporation, other than the council or a
metropolitan agency, lying in whole or in part within the metropolitan transit improvement
area.
new text end

new text begin Subd. 2. new text end

new text begin Metropolitan transit improvement area sales tax imposition; rate. new text end

new text begin (a)
Notwithstanding section 297A.99, subdivisions 1, 2, and 3, 477A.016, or any other law, a
county in the metropolitan transit improvement area may impose by resolution a transit
improvement sales and use tax on retail sales and uses taxable under this chapter occurring
within the county. The rate of the tax, except as otherwise provided under paragraphs (b)
and (c), is one-half of one percent.
new text end

new text begin (b) A county that imposes the transit improvement sales and use tax under this
section may impose the tax at the alternative rate of three-quarters of one percent.
new text end

new text begin (c) The rate at which the metropolitan area transit sales and use tax is imposed in
each county will be reduced by the rate of a greater Minnesota transportation sales and
use tax imposed by that county under section 297A.993.
new text end

new text begin (d) The taxes imposed under this subdivision are 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, and Laws 2012, chapter 299, article 3, section 3, or in
determining a tax that may be imposed under any other limitations.
new text end

new text begin Subd. 3. new text end

new text begin Administration; collection; enforcement. new text end

new text begin Except as otherwise provided
in this section, the provisions of section 297A.99, subdivisions 4 and 6 to 12a, govern the
administration, collection, and enforcement of the tax authorized under this section.
new text end

new text begin Subd. 4. new text end

new text begin Distribution of net revenues. new text end

new text begin After deducting costs of collection and other
costs under section 297A.99, subdivision 11, the commissioner of revenue shall remit:
new text end

new text begin (1) to the Counties Transit Improvement Board, an amount equal to 8.5 percent of
the net proceeds of the tax imposed under subdivision 2, paragraph (a);
new text end

new text begin (2) to each county that imposes the tax at the alternative rate under subdivision 2,
paragraph (b), an amount equal to the revenues generated by one-fourth of one percent of
the tax on sales and uses in that county; and
new text end

new text begin (3) to the Metropolitan Council, the remaining proceeds.
new text end

new text begin Subd. 5. new text end

new text begin General purpose; consistency with transportation policy plan. new text end

new text begin (a) The
Metropolitan Council shall utilize the proceeds of the tax imposed under subdivision 2,
paragraph (a), for transit purposes described under subdivision 7, within the metropolitan
transit improvement area.
new text end

new text begin (b) Projects funded with the tax proceeds must not be inconsistent with the
long-range transportation policy plan adopted by the council under section 473.146 and
must be located within the transit improvement area.
new text end

new text begin (c) A county that imposes the transit improvement sales and use tax under
subdivision 2, paragraph (b), may utilize from the tax proceeds an amount equal to a tax of
one-quarter of one percent for any transportation purpose, except for Hennepin County,
which may utilize the described amount only for transit purposes.
new text end

new text begin Subd. 6. new text end

new text begin Priorities. new text end

new text begin The council shall allocate revenues from the taxes imposed
under this section in conformance with the following priority order:
new text end

new text begin (1) payment of debt service necessary for the fiscal year on bonds or other
obligations secured by revenues from the tax imposed in this section;
new text end

new text begin (2) proportional distribution of an amount equal to one-eighth of the total net
proceeds of the taxes imposed under subdivision 2 and under section 297A.992,
subdivision 2, so that the share of each county in the metropolitan transit improvement
area is based on the proportion of taxes generated in that county. Grant awards under
this clause must be used by Hennepin County only for transit purposes, but by all other
counties for any transit purpose or any transportation purpose that has a nexus to transit or
transit-oriented development; and
new text end

new text begin (3) as otherwise authorized under subdivision 7.
new text end

new text begin Subd. 7. new text end

new text begin Use of tax proceeds. new text end

new text begin (a) After deducting the amount necessary under
subdivision 6, clauses (1) and (2), the council shall allocate remaining revenues from the
tax imposed in this section for the following purposes:
new text end

new text begin (1) operating and capital costs to preserve existing bus services that are in
conformance with regional transit performance standards as specified in the council's
transportation policy plan;
new text end

new text begin (2) 100 percent of the net operating costs of arterial bus rapid transit lines in operation
on September 30, 2015, and 50 percent of the net operating costs of other transitways;
new text end

new text begin (3) grants required under paragraph (b);
new text end

new text begin (4) operating and capital costs for transit expansion consistent with the transit
portion of the council's policy transit plan, including, but not limited to:
new text end

new text begin (i) expansion and upgrades of regular route and commuter bus service provided
by metropolitan transit and replacement services under section 473.388, with overall
expansion of service by an annual average rate of four percent;
new text end

new text begin (ii) development of arterial bus rapid transit, transitways, and streetcar systems; and
new text end

new text begin (iii) maintenance of affordable transit fares;
new text end

new text begin (5) operating and capital costs for expansion and improvement of regional
transitways and streetcars;
new text end

new text begin (6) to transit authorities to establish, replace, or modify transit shelters to conform
with design specifications and maintenance requirements within the meaning of section
473.41;
new text end

new text begin (7) as grants in the annual amount of $390,000, payable by July 31, to transportation
management organizations that provide services exclusively or primarily in (1) each city
of the first class, as provided under section 410.01; and (2) the city having the highest
population as of the effective date of this section located along the marked Interstate
Highway 494 corridor. Permissible uses include administrative expenses and programming
and service expansion, including but not limited to staffing, communications, outreach and
education program development, and operations management;
new text end

new text begin (8) for financial assistance to replacement service providers under section 473.388
in the amount of $1,500,000 in fiscal year 2016 and $1,500,000 in fiscal year 2017, to
implement a demonstration project that provides regular route transit or express bus
service between municipalities in the metropolitan transportation improvement area,
excluding cities of the first class. The council shall allocate the appropriated funds as
directed by the replacement service providers who shall collectively identify one or more
demonstration projects for financial assistance under this section and submit a notification
of the allocation to the Metropolitan Council. Criteria for evaluating and identifying
demonstration projects must include, but are not limited to:
new text end

new text begin (i) scope of service offering improvements;
new text end

new text begin (ii) integration with transit facilities and major business, retail, or suburban centers;
new text end

new text begin (iii) extent to which a proposed route complements existing transit service; and
new text end

new text begin (iv) density of employment along a proposed route;
new text end

new text begin (9) to the Center for Transportation Studies, University of Minnesota, $500,000
annually for research to improve accessibility, operational efficiency, and safety of transit
systems; and
new text end

new text begin (10) any other costs payable under subdivisions 5, 6, and 7, which may include,
but are not limited to, transit operations, capital improvements, design, engineering and
environmental work, acquisition of real property, transit planning and feasibility studies,
and to provide grants to local governmental units for transit purposes, including streetcars
or for bicycle and pedestrian projects.
new text end

new text begin (b) The council shall make available an amount equal to ten percent of the revenues
from the tax imposed in this section and in section 297A.992 through grants to local
units of government within the metropolitan transit improvement area for construction
and maintenance of regional bicycle, trail, and pedestrian infrastructure for safe routes to
school infrastructure and for active transportation programs under section 174.38.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
September 30, 2015, and applies in the counties of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, and Washington, except that subdivision 2, paragraph (c), is effective the
day following final enactment.
new text end

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 473.4051, subdivision 2, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

ARTICLE 8

EFFICIENCY MEASURES AND RELATED POLICY

Section 1.

Minnesota Statutes 2014, section 161.088, subdivision 5, is amended to read:

Subd. 5.

Project selection process; criteria.

(a) The commissioner shall establish a
process for identification, evaluation, and selection of projects under the program.

(b) As part of the project selection process, the commissioner shall annually accept
recommendations on candidate projects from area transportation partnerships and other
interested stakeholders in each Department of Transportation district. For each candidate
project identified under this paragraph, the commissioner shall determine eligibility,
classify, and if appropriate, evaluate the project for the program.

(c) Project evaluation and prioritization must be performed on the basis of objective
criteria, which must include:

(1) a return on investment measure that provides for comparison across eligible
projects;

(2) measurable impacts on commerce and economic competitiveness;

(3) efficiency in the movement of freight, including but not limited to:

(i) measures of annual average daily traffic and commercial vehicle miles traveled,
which may include data near the project location on that trunk highway or on connecting
trunk and local highways; and

(ii) measures of congestion or travel time reliability, which may be within or near
the project limits, or both;

(4) improvements to traffic safety;

(5) connections to regional trade centers, local highway systems, and other
transportation modes;

(6) the extent to which the project addresses multiple transportation system policy
objectives and principles; deleted text begin and
deleted text end

(7) support and consensus for the project among members of the surrounding
community new text begin ; and
new text end

new text begin (8) the extent to which land has been acquired for the project new text end .

(d) As part of the project selection process, the commissioner may divide funding
to be separately available among projects within each classification under subdivision 3,
and may apply separate or modified criteria among those projects falling within each
classification.

Sec. 2.

Minnesota Statutes 2014, section 161.20, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Transfer of appropriations. new text end

new text begin With the approval of the commissioner of
management and budget, the commissioner of transportation may transfer unencumbered
balances among appropriations from the trunk highway fund and the state airports fund.
No transfer may be made from appropriations for state road construction, for operations
and maintenance, or for debt service. Transfers under this paragraph may not be made
between funds. Transfers under this paragraph must be reported immediately to the
chairs and ranking minority members of the legislative committees and divisions with
jurisdiction over transportation finance.
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

Sec. 3.

new text begin [174.38] ACTIVE TRANSPORTATION PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given them.
new text end

new text begin (b) "Administering authority" or "authority" means the commissioner of
transportation, the joint powers board under section 297A.992, or the council, as
appropriate.
new text end

new text begin (c) "Bond-eligible cost" means:
new text end

new text begin (1) expenditures under this section for acquisition of land or permanent easements,
predesign, design, preliminary and final engineering, environmental analysis, construction,
and reconstruction of publicly owned infrastructure in this state with a useful life of at
least ten years that provides for nonmotorized transportation;
new text end

new text begin (2) preparation of land for which a nonmotorized transportation route is established,
including demolition of structures and remediation of any hazardous conditions on the
land; and
new text end

new text begin (3) the unpaid principal on debt issued by a political subdivision for a nonmotorized
transportation project.
new text end

new text begin (d) "Council" means the Metropolitan Council, as defined under section 473.121,
subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Programs established. new text end

new text begin (a) Upon availability of funds specifically provided
to an administering authority for purposes of this section, the authority shall establish a
program to support bicycling, pedestrian activities, and other forms of nonmotorized
transportation as provided in this section.
new text end

new text begin (b) Subject to the requirements of this section, the authority may provide grants
or other financial assistance for a project.
new text end

new text begin Subd. 3. new text end

new text begin Active transportation accounts. new text end

new text begin (a) An active transportation account
is established in the bond proceeds fund. The account consists of state bond proceeds
appropriated to the commissioner or the council. Money in the account may only be
expended on bond-eligible costs of a project receiving financial assistance under this
section. All uses of funds from the account must be for publicly owned property.
new text end

new text begin (b) A greater Minnesota active transportation account is established in the special
revenue fund. The account consists of funds as provided by law and any other money
donated, allotted, transferred, or otherwise provided to the account. Money in the account
may only be expended on a project that is primarily located outside of the metropolitan
transit improvement area, as defined in section 297A.9925, subdivision 1, and receiving
financial assistance as provided under this section.
new text end

new text begin (c) A metropolitan area active transportation account is established in the special
revenue fund. The account consists of funds as provided by law and any other money
donated, allotted, transferred, or otherwise provided to the account. Money in the account
may only be expended on a project that is primarily located within the metropolitan transit
improvement area, as defined in section 297A.9925, subdivision 1, and receiving financial
assistance as provided under this section.
new text end

new text begin Subd. 4. new text end

new text begin Program administration. new text end

new text begin (a) The authority shall establish program
requirements, including:
new text end

new text begin (1) eligibility for assistance, subject to the requirements under paragraph (b);
new text end

new text begin (2) a process for solicitation and application that minimizes applicant burdens; and
new text end

new text begin (3) procedures for award and payment of financial assistance.
new text end

new text begin (b) Eligible recipients of financial assistance under this section are:
new text end

new text begin (1) a political subdivision; and
new text end

new text begin (2) a tax-exempt organization under section 501(c)(3) of the Internal Revenue
Code, as amended.
new text end

new text begin (c) The authority shall make reasonable efforts to publicize each solicitation
for applications among all eligible recipients, and provide assistance in creating and
submitting applications.
new text end

new text begin (d) The authority may expend no more than one percent of available funds in a fiscal
year under this section on program administration.
new text end

new text begin Subd. 5. new text end

new text begin State general obligation bond funds. new text end

new text begin The legislature determines that
many nonmotorized transportation infrastructure projects constitute betterments and
capital improvements within the meaning of the Minnesota Constitution, article XI,
section 5, paragraph (a), and capital expenditures under generally accepted accounting
principles, and will be financed more efficiently and economically under this section than
by direct appropriations for specific projects.
new text end

new text begin Subd. 6. new text end

new text begin Use of funds. new text end

new text begin (a) For a project funded through state bond proceeds under
this section, financial assistance is limited solely to bond-eligible costs.
new text end

new text begin (b) Subject to paragraph (a), the authority shall determine permissible uses of
financial assistance under this section, which must include:
new text end

new text begin (1) construction and maintenance of bicycle, trail, and pedestrian infrastructure,
including but not limited to bicycle facilities and centers, and safe routes to school
infrastructure; and
new text end

new text begin (2) noninfrastructure programming, including activities as specified in section
174.40, subdivision 7a, paragraph (b).
new text end

new text begin Subd. 7. new text end

new text begin Project evaluation and selection. new text end

new text begin The authority shall establish a project
evaluation and selection process under this section that is competitive, criteria-based, and
objective. The process must include criteria and prioritization of projects based on:
new text end

new text begin (1) inclusion of the project in a municipal or regional nonmotorized transportation
system plan;
new text end

new text begin (2) location of the project in a jurisdiction in which a complete streets policy, as
provided under section 174.75, is in effect;
new text end

new text begin (3) the extent to which the project supports development of continuous and
convenient safe routes to school;
new text end

new text begin (4) the extent to which the project supports development of routes to and connections
with educational facilities, centers of employment, governmental services, health care
facilities, food sources, transit facilities, and other community destinations;
new text end

new text begin (5) general benefits to public health and safety as a result of the project; and
new text end

new text begin (6) geographic equity in project benefits, as well as benefits in areas or locations
experiencing high rates of pedestrian or bicycle collisions, high rates of health disparities,
and high concentrations of poverty.
new text end

new text begin Subd. 8. new text end

new text begin Grant cancellation. new text end

new text begin If, five years after execution of a grant agreement,
the authority determines that the grantee has not proceeded in a timely manner with
implementation of the project funded, the commissioner must cancel the grant and
the grantee must repay to the commissioner all grant money paid to the grantee for
deposit in the active transportation account from which the grant was originally paid.
Section 16A.642 applies to any appropriations made from the bond proceeds fund to the
commissioner under this section that have not been awarded as financial assistance.
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

Sec. 4.

Minnesota Statutes 2014, section 174.42, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Funding requirement for greater Minnesota. new text end

new text begin In each federal fiscal year,
the commissioner shall spend out of National Highway Performance Program funds a total
amount in federal transportation funds for an active transportation competitive grant
program in greater Minnesota that totals a minimum of $16,000,000 in excess of the
average annual spending on greater Minnesota transportation alternatives projects under
section 174.38 in federal fiscal years between October 2009 and September 2012. National
Highway Performance Program funds may be converted to Surface Transportation
Program funds or Transportation Alternative Program funds to fulfill the requirements
of this section. This requirement must not reduce the amount of federal transportation
funding for metropolitan projects.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2015.
new text end

Sec. 5.

Minnesota Statutes 2014, section 174.50, is amended by adding a subdivision
to read:

new text begin Subd. 6d. new text end

new text begin Major local bridges account. new text end

new text begin The major local bridges account is created
in the Minnesota state transportation fund for money appropriated, allocated, or transferred
into the account to fund major local bridge projects. For purposes of this subdivision, a
major local bridge project is a project that carries a total cost in excess of $30,000,000.
new text end

Sec. 6.

new text begin [219.016] RAILROAD COMPANY ASSESSMENT; ACCOUNT;
APPROPRIATION.
new text end

new text begin (a) As provided in this section, the commissioner shall annually assess railroad
companies that are (1) defined as common carriers under section 218.011; (2) classified by
federal law or regulation as Class I Railroads or Class I Rail Carriers; and (3) operating in
this state. The total assessment amount may not exceed $32,500,000 annually.
new text end

new text begin (b) The assessment must be by a division of the annual appropriation to the grade
crossing safety improvement account in equal proportion between carriers based on route
miles operated in Minnesota, assessed in equal amounts for 365 days of the calendar year.
new text end

new text begin (c) The assessments must be deposited in the rail grade crossing safety improvement
account, which is created in the special revenue fund. Money in the account is
appropriated to the commissioner for the creation of a rail safety office within the
Department of Transportation, not to exceed $1,400,000 in each year; the development,
administration, and construction of highway-rail grade crossing improvements on rail
corridors transporting crude oil; and other selected routes, including those carrying
hazardous materials. Improvements may include upgrades to existing protection systems,
the closing of crossings and necessary roadwork, and reconstruction of at-grade crossings
to full grade separations. Funds in the account are available until expended.
new text end

Sec. 7.

Laws 2014, chapter 312, article 11, section 33, is amended to read:

Sec. 33. TRANSPORTATION EFFICIENCIES.

new text begin (a) new text end The commissioner of transportation shall include in the report under Minnesota
Statutes, section 174.56, due by December 15, 2015, information on efficiencies
implemented in fiscal year 2015 in planning and project management and delivery,
along with an explanation of the efficiencies employed to achieve the savings and the
methodology used in the calculations. The level of savings achieved must equal, in
comparison with the total state road construction budget for that year, a minimum of five
percent in fiscal year 2015. The report must identify the projects that have been advanced
or completed due to the implementation of efficiency measures.

new text begin (b) The commissioner shall identify in the report those recommendations from the
Transportation Strategic Management and Operations Advisory Task Force Report dated
January 23, 2009, submitted to the legislature by the Departments of Administration
and Transportation, as required by Laws 2008, chapter 152, article 6, section 9,
that the commissioner has implemented, with a description of current status of the
recommendation and results of implementation.
new text end

new text begin (c) The commissioner shall present in the report plans to incorporate greater
efficiencies in department operation and decision-making, including, but not limited to,
the following: financing innovations, mode choice in project selection and design, land
use planning, return on investment calculation, project delivery, including selection of
materials and decreasing project delivery time, and efficiencies in multiagency permitting.
new text end

Sec. 8. new text begin PUBLIC-PRIVATE PARTNERSHIP PILOT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Public-private partnership initiatives. new text end

new text begin (a) The commissioner
of transportation and the Metropolitan Council are authorized to consider and utilize
public-private partnership procurement methods for a maximum total of three pilot
projects as provided in this section. Neither the commissioner nor the council may
enter into more than two public-private partnerships under this section. Utilization of
public-private partnerships is a recognition of the importance to the state of an efficient
and safe transportation system, and the necessity of developing alternative funding sources
to supplement traditional sources of transportation revenues. A public-private partnership
initiative must take advantage of the expertise and experience of public employees and
private sector efficiencies in design and construction, along with expertise in finance and
development, and provide a better long-term value for the state than could be obtained
through traditional procurement methods.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 160.98, or any other law to the
contrary, the commissioner or council may consider for use in the pilot program any
existing public-private partnership mechanism or any proposed mechanism that proves the
best available option for the state and that is not inconsistent with state law. Mechanisms
the commissioner or council may consider include, but are not limited to, toll facilities,
BOT facilities, BTO facilities, user fees, construction payments, joint development
agreements, negotiated exactions, or air rights development. For the purposes of this
section, toll facilities, BOT facilities, and BTO facilities have the meanings given under
Minnesota Statutes, section 160.84.
new text end

new text begin (c) As part of the pilot program, the commissioner and council are directed to form
an independent advisory and oversight office, the Joint Program Office for Economic
Development and Alternative Finance. The office shall consist of the commissioner of
management and budget, the commissioner of employment and economic development,
the commissioner of administration, the commissioner of transportation, the Metropolitan
Council, and one representative each from the American Council of Engineering
Companies - Minnesota chapter, the Minnesota Subcontractors Association, the Counties
Transit Improvement Board, the Minnesota County Engineers Association, the Associated
General Contractors - Minnesota Chapter, and AFSCME Minnesota Council 5. In
addition, the commissioner and Metropolitan Council shall invite the Federal Highway
Administration and the Federal Transit Administration to participate in the office's
activities. The office's duties include, but are not limited to, reviewing and approving
projects proposed under this section, reviewing any contractual or financial agreements
to ensure program requirements are met, and ensuring that any proposed or executed
agreement serves the public interest.
new text end

new text begin Subd. 2. new text end

new text begin Pilot program restrictions and project selection. new text end

new text begin (a) The commissioner
or council may receive or solicit and evaluate proposals to build, operate, and finance
projects for infrastructure of a capital nature, excluding rolling stock. An approved project
must not be inconsistent with the commissioner's most recent statewide transportation
plan or the council's most recent transportation policy plan.
new text end

new text begin (b) When entering into a public-private partnership, the commissioner or council
may not enter into any noncompete agreement that inhibits the state's ability to address
ongoing or future infrastructure needs.
new text end

new text begin (c) A public-private partnership project may include a confidentiality agreement
that protects the trade secrets of a proposer.
new text end

new text begin (d) A public-private partnership agreement that includes a temporary transfer
of ownership or control of a road, bridge, or other infrastructure investment to the
private entity, must include a provision requiring the return of the road, bridge, or other
infrastructure investment to the state after a specified period of time that may not exceed
50 years.
new text end

new text begin (e) If the commissioner or council enters into a public-private partnership agreement
that relates to construction of a toll facility, BOT facility, or BTO facility, the agreement
must include a provision giving contractors, subcontractors, and suppliers of any tier, a
means of securing payments due for work on the project, which may include a right
to file a mechanics lien on toll revenues.
new text end

new text begin (f) If the department or council receives an unsolicited proposal from a private entity
for a project that is approved by the office under subdivision 1, the department or council
shall publish a notice for 12 weeks, continuously on its Web site, and at a minimum,
weekly in the State Register stating that the department or council has received the
proposal and will accept, for 120 days after the initial date of publication, other proposals
for the same project purpose. The private proposer must be selected on a competitive basis.
new text end

new text begin (g) The commissioner and council may select only new projects for a public-private
partnership. The commissioner and council are prohibited from selecting projects
involving existing infrastructure for a public-private partnership, unless the proposed
project adds capacity to the existing infrastructure.
new text end

new text begin (h) The total cost estimate for a project selected for a public-private partnership
must not exceed $500,000,000.
new text end

new text begin Subd. 3. new text end

new text begin Evaluation and selection of private entity and project. new text end

new text begin (a) The
commissioner and council shall contract with one or more consultants to assist in proposal
evaluation. The consultant must possess expertise and experience in public-private
partnership project evaluation methodology, such as value for money, costs of
public-private partnership compared with costs of public project delivery, and cost-benefit
analysis.
new text end

new text begin (b) When soliciting, evaluating, and selecting a private entity with which to enter
into a public-private partnership and before approving and selecting a project, the
commissioner or council, along with the office, must consider:
new text end

new text begin (1) the ability of the proposed project to improve safety, reduce congestion, increase
capacity, and promote economic growth;
new text end

new text begin (2) the proposed cost of and financial plan for the project;
new text end

new text begin (3) the general reputation, qualifications, industry experience, and financial capacity
of the private entity;
new text end

new text begin (4) the project's proposed design, operation, and feasibility;
new text end

new text begin (5) length and extent of transportation and transit service disruption;
new text end

new text begin (6) comments from local citizens and affected jurisdictions;
new text end

new text begin (7) benefits and potential detriments to the public; and
new text end

new text begin (8) the safety record of the private entity.
new text end

new text begin (c) The independent advisory and oversight office established under subdivision 1,
paragraph (c), shall, in collaboration with authorized representatives of Department of
Transportation workers, review proposals evaluated by the commissioner or council to
ensure the requirements of this section are being met. The independent advisory and
oversight office shall first determine whether the project, as proposed, serves the public
interest. In making this determination, the office must identify and consider advantages
and disadvantages for various stakeholders, including taxpayers, workers, transportation
and transit providers and operators, transportation and transit users, commercial vehicle
operators, and the general public, including the impact on the state's economy and the
project's environmental impact.
new text end

new text begin (d) After deciding to proceed with a project that is determined by the independent
advisory and oversight office to serve the public interest, as provided in paragraph (c), the
commissioner or council shall solicit competitive proposals.
new text end

new text begin (e) The commissioner or council may solicit proposals in three stages, subject to
applicable provisions of sections 161.3410 to 161.3426:
new text end

new text begin (1) stage one involves solicitation of competitive proposals from private entities to
provide the financing for the project and award of the financing contract. The request for
proposals must state all criteria upon which financing proposals are to be evaluated, along
with the weight ascribed to each criterion. The contract awarded must be conditioned upon
completion of the three-stage process with an executed contract for design, engineering,
and construction of the project;
new text end

new text begin (2) stage two involves issuance of a request for qualifications and selection by the
commissioner or council of not more than four proposers who may compete for the design,
engineering, and construction portions of the project; and
new text end

new text begin (3) stage three involves selection by the commissioner or council of the successful
proposer, and award of the contract. Unsuccessful proposers who submit responsive
proposals in good faith must be paid a reasonable stipend. In consideration for paying the
stipend, the commissioner or council may use any ideas or information contained in the
proposals for the project or a subsequent procurement, without obligation to pay additional
compensation to the unsuccessful proposer. The commissioner or council may not use
ideas and information contained in a proposal submitted by an unsuccessful short-list
proposer who elects to waive the stipend.
new text end

new text begin Subd. 4. new text end

new text begin Public-private agreement. new text end

new text begin (a) A public-private agreement between the
commissioner or the council and a private entity shall, at a minimum, specify:
new text end

new text begin (1) the planning, acquisition, financing, development, design, construction,
reconstruction, replacement, improvement, maintenance, management, repair, leasing, or
operation of the project, as applicable to the entity and objectives of the agreement;
new text end

new text begin (2) the term of the public-private agreement;
new text end

new text begin (3) the type and duration of property interest, if any, that the private entity will
have in the project;
new text end

new text begin (4) a description of the actions the commissioner or council may take to ensure
proper maintenance of the project;
new text end

new text begin (5) whether user fees will be collected on the project and the basis by which the user
fees shall be determined and modified along with identification of the public agency that
will determine and modify fees;
new text end

new text begin (6) compliance with applicable federal, state, and local laws;
new text end

new text begin (7) grounds for termination of the public-private agreement by the commissioner
or council;
new text end

new text begin (8) adequate safeguards for the traveling public and residents of the state in event of
default on the contract;
new text end

new text begin (9) the extent and nature of involvement of public employees in the proposed project;
new text end

new text begin (10) financial protection for the state in the event of default, which must include
payment and performance bonds, for any construction, that meet the requirements under
Minnesota Statutes, sections 574.26 to 574.32; and
new text end

new text begin (11) procedures for amendment of the agreement.
new text end

new text begin (b) A public-private agreement between the commissioner or council and a private
entity may provide for:
new text end

new text begin (1) review and approval by the commissioner or council of the private entity's plans
for the development and operation of the project;
new text end

new text begin (2) inspection by the commissioner or council of construction and improvements
to the project;
new text end

new text begin (3) maintenance by the private entity of a liability insurance policy;
new text end

new text begin (4) filing of appropriate financial statements by the private entity on a periodic basis;
new text end

new text begin (5) filing of traffic reports by the private entity on a periodic basis;
new text end

new text begin (6) financing obligations of the commissioner or council and the private entity;
new text end

new text begin (7) apportionment of expenses between the commissioner or council and the private
entity;
new text end

new text begin (8) the rights and remedies available to all parties to the agreement as well as to
contractors, subcontractors, and vendors of any tier, in the event of a default or delay;
new text end

new text begin (9) the rights and duties of the private entity, the commissioner or council, and other
state or local governmental entities with respect to the use of the project;
new text end

new text begin (10) any negotiated terms and conditions of indemnification of any party to the
agreement;
new text end

new text begin (11) assignment, subcontracting, or other delegations of responsibilities of (i)
the private entity, or (ii) the commissioner or council under agreement to third parties,
including other private entities or state agencies;
new text end

new text begin (12) if applicable, sale or lease to the private entity of private property related to
the project;
new text end

new text begin (13) traffic enforcement and other policing issues; and
new text end

new text begin (14) any other terms and conditions the commissioner or council deems appropriate.
new text end

new text begin (c) The independent advisory and oversight office established under subdivision
1, paragraph (c), shall review any proposed contractual agreement prior to execution
in order to ensure that the contract serves the public interest and the requirements of
this section are met.
new text end

new text begin Subd. 5. new text end

new text begin Funding from federal government. new text end

new text begin (a) The commissioner or council may
accept from the United States or any of its agencies funds that are available to the state
for carrying out the pilot program, whether the funds are available by grant, loan, or
other financial assistance.
new text end

new text begin (b) The commissioner or council may enter into agreements or other arrangements
with the United States or any of its agencies as necessary for carrying out the pilot program.
new text end

new text begin (c) The commissioner or council shall seek to maximize project funding from
nonstate sources and may combine federal, state, local, and private funds to finance a
public-private partnership pilot project.
new text end

new text begin Subd. 6. new text end

new text begin Reporting. new text end

new text begin By August 1, 2016, and annually by August 1 thereafter until
all agreements entered into under this section are expired or terminated, the commissioner
and council shall submit to the chairs and ranking minority members of the house of
representatives and senate committees having jurisdiction over transportation policy
and finance a list of all agreements executed under the pilot program authority. The list
must identify each agreement, the contracting entities, contract amount and duration, any
repayment requirements, and provide an update on the project's progress. The list may be
submitted electronically and is subject to Minnesota Statutes, section 3.195, subdivision 1.
new text end

new text begin Subd. 7. new text end

new text begin Expiration of authority. new text end

new text begin The authority to enter into new agreements
under this section expires on June 30, 2019.
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. 9. new text begin TRANSPORTATION PROJECT SELECTION PROCESS.
new text end

new text begin Subdivision 1. new text end

new text begin Adoption of process and public input. new text end

new text begin The commissioner of
transportation shall, after consultation with metropolitan planning organizations, regional
development commissions, area transportation partnerships, local governments, and the
Metropolitan Council, draft a proposed transportation project data-driven evaluation
process to provide an objective and consistent analysis to assist in developing the
statewide transportation plan and prioritization of highway construction, reconstruction,
and improvement projects in the state transportation improvement program. No later than
September 1, 2015, the proposed process must be reported to the chairs and ranking
minority members of the senate and house of representatives committees on transportation
policy and finance, and published with a schedule for public hearings and additional
opportunities for public input, both electronically and at locations throughout the state. No
later than January 10, 2016, after public comment has been heard and incorporated into
the proposed evaluation process, the commissioner shall adopt a final process for use in
highway project investment decisions on and after March 1, 2016.
new text end

new text begin Subd. 2. new text end

new text begin Factors in analysis. new text end

new text begin The process must be based on objective, consistent,
and quantifiable analysis. Factors in the analysis must include return on investment,
benefit-cost, local rankings, safety, congestion mitigation, economic development,
accessibility, environmental quality, regional and metropolitan-rural balance, and land
use. The process may assign different weights to factors in evaluating projects on the
trunk highway system, the county state-aid highway system, and the municipal state-aid
street system.
new text end

new text begin Subd. 3. new text end

new text begin Exemptions. new text end

new text begin A proposed project is exempt from the process if it is:
new text end

new text begin (1) funded by a grant from:
new text end

new text begin (i) the corridors of commerce program under Minnesota Statutes, section 161.088;
new text end

new text begin (ii) the transportation economic development program under Minnesota Statutes,
section 174.12; and
new text end

new text begin (iii) the joint powers board under Minnesota Statutes, section 297A.992, subdivision
6; or
new text end

new text begin (2) a preservation, maintenance, capital preventive treatment or safety project that
does not increase the capacity of the infrastructure, or if subjecting it to the evaluation
process would result in a loss of federal funds.
new text end

new text begin Subd. 4. new text end

new text begin Information on department's Web site. new text end

new text begin For each proposed project
evaluated under this process, the applicable scoring process, the score for each factor, and
the overall score are public information and must be published on the department's Web site.
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

Sec. 10. new text begin ACTIVE TRANSPORTATION PROGRAM DEVELOPMENT.
new text end

new text begin (a) By October 1, 2015, the Advisory Committee on Nonmotorized Transportation
under Minnesota Statutes, section 174.37, shall develop and submit recommendations to
each administering authority under Minnesota Statutes, section 174.38, for developing
project evaluation and selection processes under Minnesota Statutes, section 174.38,
subdivision 7. The advisory committee may consult with representatives from the
Bicycle Alliance of Minnesota, Minnesota Chamber of Commerce, Metropolitan
Council Transportation Accessibility Advisory Committee, Minnesota Department of
Transportation district area transportation partnerships, Minnesota State Council on
Disability, organizations representing elderly populations, and public health organizations
with experience in active transportation.
new text end

new text begin (b) In its next annual report under Minnesota Statutes, section 174.37, subdivision
4, the advisory committee shall include a summary of the recommendations under this
section and submit a copy to the chairs and ranking minority members of the legislative
committees with jurisdiction over transportation policy and finance. The report is subject
to Minnesota Statutes, section 3.195.
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