as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to transportation; creating multimodal 1.3 transportation fund and accounts; modifying formula 1.4 for distributing state aid for county highways and 1.5 small cities; allocating proceeds from sales tax on 1.6 motor vehicles; increasing and indexing motor fuel 1.7 taxes; authorizing trunk highway bonds; requiring 1.8 metropolitan area election concerning imposition of 1.9 one-half cent general sales tax; dedicating sales tax 1.10 revenues to highway improvements and transit capital 1.11 in the metropolitan area; appropriating money; 1.12 amending Minnesota Statutes 2002, sections 162.07, 1.13 subdivision 1, by adding subdivisions; 296A.07, 1.14 subdivision 3, by adding a subdivision; 296A.08, 1.15 subdivision 2, by adding a subdivision; 297B.09, 1.16 subdivision 1; proposing coding for new law in 1.17 Minnesota Statutes, chapters 16A; 162; 270; proposing 1.18 coding for new law as Minnesota Statutes, chapter 473J. 1.19 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.20 ARTICLE 1 1.21 TRANSPORTATION FINANCE 1.22 Section 1. [16A.89] [MULTIMODAL TRANSPORTATION FUND AND 1.23 ACCOUNTS.] 1.24 Subdivision 1. [FUND ESTABLISHED.] A multimodal 1.25 transportation fund is established in the state treasury. The 1.26 fund consists of money credited under section 297B.09, 1.27 subdivision 1, and other money credited to the fund by law. 1.28 Money in the fund must be credited 40 percent to the department 1.29 of transportation multimodal account in subdivision 2 and 60 1.30 percent to the transit account in subdivision 3. 1.31 Subd. 2. [DEPARTMENT OF TRANSPORTATION MULTIMODAL 1.32 ACCOUNT.] (a) A department of transportation multimodal account 2.1 is created within the multimodal fund. Money in the account is 2.2 annually appropriated to the commissioner of transportation and 2.3 may be expended for costs related to any transportation purpose 2.4 in the state. At least 20 percent of the money must be used for 2.5 transit assistance in areas outside of the metropolitan area as 2.6 defined in section 473.121, subdivision 2. Twenty-five percent 2.7 of the money available in the account must be credited to a 2.8 small cities municipal account and distributed to cities with a 2.9 population under 5,000 as specified in section 162.62. 2.10 (b) The commissioner shall include as part of each biennial 2.11 budget document submitted to the legislature: 2.12 (1) an estimate of the total amount of money available in 2.13 the account; 2.14 (2) an estimate of the amount of money distributed to 2.15 cities with a population less than 5,000; and 2.16 (3) a detailed plan for expenditure of the money in the 2.17 next biennium. 2.18 Subd. 3. [TRANSIT ACCOUNT.] (a) A transit account is 2.19 created within the multimodal fund. Money in the account is 2.20 annually appropriated to the metropolitan council for 2.21 expenditure on costs related to transit operations and capital 2.22 within the metropolitan area. 2.23 (b) The council and department of transportation shall 2.24 include as part of each biennial budget document submitted to 2.25 the legislature: 2.26 (1) an estimate of the total amount of money available in 2.27 the account; and 2.28 (2) a detailed plan for expenditure of the money in the 2.29 next biennium. 2.30 Sec. 2. Minnesota Statutes 2002, section 162.07, 2.31 subdivision 1, is amended to read: 2.32 Subdivision 1. [FORMULA.] After deducting for 2.33 administrative costs and for the disaster account and research 2.34 account and state park roads asheretoforeprovided in section 2.35 162.06, subdivisions 2 through 5, the remainder of the total sum 2.36 provided for in section 162.06, subdivision 1,shall beis 3.1 identified as the apportionment sum andshall be apportioned by3.2the commissioner to the several counties on the basis of the3.3needs of the counties as determined in accordance with the3.4following formula:3.5(a) An amount equal to ten percent of the apportionment sum3.6shall be apportioned equally among the 87 counties.3.7(b) An amount equal to ten percent of the apportionment sum3.8shall be apportioned among the several counties so that each3.9county shall receive of such amount the percentage that its3.10motor vehicle registration for the calendar year preceding the3.11one last past, determined by residence of registrants, bears to3.12the total statewide motor vehicle registration.3.13(c) An amount equal to 30 percent of the apportionment sum3.14shall be apportioned among the several counties so that each3.15county shall receive of such amount the percentage that its3.16total lane-miles of approved county state-aid highways bears to3.17the total lane-miles of approved statewide county state-aid3.18highways. In 1997 and subsequent years no county may receive,3.19as a result of an apportionment under this clause based on3.20lane-miles rather than miles of approved county state-aid3.21highways, an apportionment that is less than its apportionment3.22in 1996.3.23(d) An amount equal to 50 percent of the apportionment sum3.24shall be apportioned among the several counties so that each3.25county shall receive of such amount the percentage that its3.26money needs bears to the sum of the money needs of all of the3.27individual counties; provided, that the percentage of such3.28amount that each county is to receive shall be adjusted so that3.29each county shall receive in 1958 a total apportionment at least3.30ten percent greater than its total 1956 apportionments from the3.31state road and bridge fund; and provided further that those3.32counties whose money needs are thus adjusted shall never receive3.33a percentage of the apportionment sum less than the percentage3.34that such county received in 1958the excess sum. 3.35 (a) The excess sum is calculated by subtracting a 3.36 proportionate share of the deductions for administrative costs 4.1 and for the disaster account and research account from the 4.2 amount available due to an increase in the motor fuel tax rate 4.3 imposed on or after June 1, 2003, as follows: 4.4 (1) in the gasoline excise tax rate above a rate of 22.0 4.5 cents per gallon; or 4.6 (2) in the excise tax rate for E85, M85, and special fuels 4.7 above the energy equivalent of a gasoline tax rate of 22.0 cents 4.8 per gallon. 4.9 (b) The apportionment sum is calculated by subtracting the 4.10 excess sum from the remainder of the total sum. 4.11 Sec. 3. Minnesota Statutes 2002, section 162.07, is 4.12 amended by adding a subdivision to read: 4.13 Subd. 1a. [APPORTIONMENT SUM.] The commissioner shall 4.14 apportion the apportionment sum to the several counties on the 4.15 basis of the needs of the counties as determined in accordance 4.16 with the following formula: 4.17 (a) An amount equal to ten percent of the apportionment sum 4.18 must be apportioned equally among the 87 counties. 4.19 (b) An amount equal to ten percent of the apportionment sum 4.20 must be apportioned among the several counties so that each 4.21 county receives of that amount the percentage that its motor 4.22 vehicle registration for the calendar year preceding the one 4.23 last past, determined by residence of registrants, bears to the 4.24 total statewide motor vehicle registration. 4.25 (c) An amount equal to 30 percent of the apportionment sum 4.26 must be apportioned among the several counties so that each 4.27 county receives of that amount the percentage that its total 4.28 lane-miles of approved county state-aid highways bears to the 4.29 total lane-miles of approved statewide county state-aid 4.30 highways. In 1997 and subsequent years no county may receive, 4.31 as a result of an apportionment under this paragraph based on 4.32 lane-miles rather than miles of approved county state-aid 4.33 highways, an apportionment that is less than its apportionment 4.34 in 1996. 4.35 (d) An amount equal to 50 percent of the apportionment sum 4.36 must be apportioned among the several counties so that each 5.1 county receives of that amount the percentage that its money 5.2 needs bears to the sum of the money needs of all of the 5.3 individual counties; provided, that the percentage of the amount 5.4 that each county is to receive must be adjusted so that each 5.5 county receives in 1958 a total apportionment at least ten 5.6 percent greater than its total 1956 apportionments from the 5.7 state road and bridge fund; and provided further, that those 5.8 counties whose money needs are thus adjusted shall never receive 5.9 a percentage of the apportionment sum less than the percentage 5.10 that such county received in 1958. 5.11 Sec. 4. Minnesota Statutes 2002, section 162.07, is 5.12 amended by adding a subdivision to read: 5.13 Subd. 1b. [EXCESS SUM.] The commissioner shall apportion 5.14 the excess sum to the several counties on the basis of the needs 5.15 of the counties as determined in accordance with the following 5.16 formula: 5.17 (a) An amount equal to ten percent of the excess sum must 5.18 be apportioned equally among the 87 counties. 5.19 (b) An amount equal to ten percent of the apportionment sum 5.20 must be apportioned among the several counties so that each 5.21 county receives of that amount the percentage that its total 5.22 lane-miles of approved county state-aid highways bears to the 5.23 total lane-miles of approved statewide county state-aid highways. 5.24 (c) An amount equal to 30 percent of the excess sum must be 5.25 apportioned among the several counties so that each county 5.26 receives of that amount the percentage that its population bears 5.27 to the total population of the state. 5.28 (d) An amount equal to 50 percent of the excess sum must be 5.29 apportioned among the several counties so that each county 5.30 receives of that amount the percentage that its money needs 5.31 bears to the sum of the money needs of all of the individual 5.32 counties. 5.33 Sec. 5. [162.62] [SMALL CITIES MUNICIPAL ACCOUNT.] 5.34 Subdivision 1. [ESTIMATE OF ACCRUALS.] By December 15 of 5.35 each year, the commissioner shall estimate the amount of money 5.36 that will be available to the small cities municipal account as 6.1 provided in section 16A.89, subdivision 2, during that fiscal 6.2 year. The amount available is based on actual receipts from 6.3 July 1 through November 30, the unallocated account balance, and 6.4 the projected receipts for the remainder of the fiscal year. 6.5 The commissioner shall apportion the total available to the 6.6 cities having a population of less than 5,000 as provided in 6.7 subdivision 2. 6.8 Subd. 2. [FACTORS IN FORMULA.] The commissioner shall 6.9 apportion the total sum provided for in subdivision 1 to the 6.10 cities having a population of less than 5,000 in accordance with 6.11 the following formula: 6.12 (a) An amount equal to 50 percent of the apportionment sum 6.13 must be apportioned among the cities having a population of less 6.14 than 5,000 so that each of the cities receives the percentage of 6.15 the amount apportioned that its population bears to the total 6.16 population of all of the cities. 6.17 (b) An amount equal to 50 percent of the apportionment sum 6.18 must be apportioned among the cities having a population of less 6.19 than 5,000 so that each city receives the percentage of the 6.20 amount apportioned that its total lane-miles of municipal 6.21 streets bears to the total lane-miles of municipal streets of 6.22 all the cities. 6.23 Subd. 3. [STATEMENT OF APPORTIONMENT TO EACH CITY.] Upon 6.24 determining the amount of money to be apportioned to each city 6.25 having a population of less than 5,000, the commissioner shall 6.26 forthwith send a statement of the amount to the commissioner of 6.27 finance and to the clerk of the city. The amount so apportioned 6.28 to each city must be paid by the state to the fiscal officer of 6.29 the city out of the small cities municipal account. 6.30 Subd. 4. [PURPOSES; OTHER USES; OTHER FUNDS.] Money 6.31 apportioned under subdivision 2 must be used for aid in 6.32 establishing, locating, constructing, reconstructing, improving, 6.33 and maintaining municipal streets within the city. Subject to 6.34 the consent of the commissioner, the governing body of the city 6.35 may use a portion of the money so apportioned on any state trunk 6.36 highway or county state-aid highway within the city. 7.1 Sec. 6. [270.081] [TAXES CREDITED TO DEBT SERVICE 7.2 ACCOUNT.] 7.3 The revenue credited to the trunk highway fund from a tax 7.4 rate adjustment imposed under sections 296A.07, subdivision 5, 7.5 and 296A.08, subdivision 7, must be credited to the trunk 7.6 highway debt service account in the trunk highway fund. 7.7 Sec. 7. Minnesota Statutes 2002, section 296A.07, 7.8 subdivision 3, is amended to read: 7.9 Subd. 3. [RATE OF TAX.] The gasoline excise tax is imposed 7.10 at the following rates: 7.11 (1) E85 is taxed at the rate of14.218.5 cents per gallon; 7.12 (2) M85 is taxed at the rate of11.414.8 cents per gallon; 7.13 and 7.14 (3) all other gasoline is taxed at the rate of2026 cents 7.15 per gallon. 7.16 Sec. 8. Minnesota Statutes 2002, section 296A.07, is 7.17 amended by adding a subdivision to read: 7.18 Subd. 5. [ANNUAL GASOLINE TAX RATE ADJUSTMENT.] (a) Before 7.19 June 1 of each year, the commissioner of revenue shall recompute 7.20 and publish the rate of the gasoline excise tax. The new rate 7.21 per gallon must be calculated by multiplying the rate in effect 7.22 at the time of the calculation by an amount obtained under 7.23 paragraph (b). The new rate must be rounded to the nearest 0.1 7.24 cent and is effective on June 1 of each year. 7.25 (b) Divide the annual average United States Consumer Price 7.26 Index for all urban consumers, United States city average, as 7.27 determined by the United States Department of Labor for the 7.28 previous year by that annual average for the year before the 7.29 previous year. 7.30 Sec. 9. Minnesota Statutes 2002, section 296A.08, 7.31 subdivision 2, is amended to read: 7.32 Subd. 2. [RATE OF TAX.] The special fuel excise tax is 7.33 imposed at the following rates: 7.34 (1) Liquefied petroleum gas or propane is taxed at the rate 7.35 of1519.5 cents per gallon. 7.36 (2) Liquefied natural gas is taxed at the rate of1215.6 8.1 cents per gallon. 8.2 (3) Compressed natural gas is taxed at the rate 8.3 of$1.739$2.261 per thousand cubic feet; or2026 cents per 8.4 gasoline equivalent, as defined by the National Conference on 8.5 Weights and Measures, which is 5.66 pounds of natural gas. 8.6 (4) All other special fuel is taxed at the same rate as the 8.7 gasoline excise tax as specified in section 296A.07, subdivision 8.8 2. The tax is payable in the form and manner prescribed by the 8.9 commissioner. 8.10 Sec. 10. Minnesota Statutes 2002, section 296A.08, is 8.11 amended by adding a subdivision to read: 8.12 Subd. 7. [ANNUAL SPECIAL FUEL TAX RATE ADJUSTMENT.] (a) 8.13 Before June 1 of each year, the commissioner of revenue shall 8.14 recompute and publish the rate of the special fuel tax. The new 8.15 rate must be calculated by multiplying the rate in effect at the 8.16 time of the calculation by an amount obtained under paragraph 8.17 (b). The new rate must be rounded to the nearest 0.1 cent and 8.18 is effective on June 1 of each year. 8.19 (b) Divide the annual average United States Consumer Price 8.20 Index for all urban consumers, United States city average, as 8.21 determined by the United States Department of Labor for the 8.22 previous year by that annual average for the year before the 8.23 previous year. 8.24 Sec. 11. Minnesota Statutes 2002, section 297B.09, 8.25 subdivision 1, is amended to read: 8.26 Subdivision 1. [DEPOSIT OF REVENUES.] (a) Money collected 8.27 and received under this chapter must be deposited as provided in 8.28 this subdivision. 8.29 (b) From July 1, 2001, to June 30, 2002, 30.86 percent of 8.30 the money collected and received must be deposited in the 8.31 highway user tax distribution fund, and the remaining money must 8.32 be deposited in the general fund. 8.33 (c)On and afterFrom July 1, 2002, through June 30, 2003, 8.34 32 percent of the money collected and received must be deposited 8.35 in the highway user tax distribution fund. 8.36 (d) On and after July 1, 2003, 21.2 percent of the money 9.1 must be deposited in the highway user tax distribution fund and 9.2 10.8 percent in the multimodal transportation fund. 9.3 (e) On and after July 1, 2002, 20.5 percent must be 9.4 deposited in the metropolitan area transit fund under section 9.5 16A.88, and 1.25 percent must be deposited in the greater 9.6 Minnesota transit fund under section 16A.88. In fiscal year 9.7 2004 and thereafter, two percent of the money collected and 9.8 received must be deposited in the metropolitan area transit 9.9 appropriation account under section 16A.88. 9.10 (f) The remaining money must be deposited in the general 9.11 fund. 9.12 Sec. 12. [TRUNK HIGHWAY BONDS; ISSUANCE.] 9.13 The commissioner of finance shall, on recommendation of the 9.14 commissioner of transportation, sell and issue Minnesota trunk 9.15 highway bonds under Minnesota Statutes, sections 167.50 to 9.16 167.52, and the Minnesota Constitution, article XI, sections 4 9.17 to 7, and article XIV, section 11, at such times and in such 9.18 amounts as are determined by the commissioner of 9.19 transportation. Bonds issued under this section are authorized 9.20 in an aggregate principal amount of $1,000,000,000 over a 9.21 ten-year period. The proceeds of the bonds, except accrued 9.22 interest and any premium received on the sale of the bonds, must 9.23 be credited to the bond proceeds account in the trunk highway 9.24 fund. Notwithstanding Minnesota Statutes, section 16A.642, this 9.25 authorization must not be canceled before February 1, 2018. 9.26 Sec. 13. [APPROPRIATIONS.] 9.27 Subdivision 1. [BOND PROCEEDS ACCOUNT.] $1,000,000,000 is 9.28 appropriated to the commissioner of transportation from the 9.29 separate bond proceeds account in the trunk highway fund for the 9.30 construction, reconstruction, and improvement of trunk highways 9.31 including acquisition of real property. No more than 9.32 $100,000,000 of this appropriation may be encumbered in each of 9.33 fiscal years 2004 through 2013. Up to 15 percent of the 9.34 appropriation each year may be used by the department for 9.35 program delivery provided that all work related to program 9.36 delivery must be done by state employees. Of this appropriation: 10.1 (1) 50 percent must be expended on projects in areas 10.2 classified by the department of transportation as bottlenecks or 10.3 at-risk interregional corridors within the seven-county 10.4 metropolitan area, as defined in Minnesota Statutes, section 10.5 473.121, subdivision 2; and 10.6 (2) 50 percent must be expended for at-risk interregional 10.7 corridors located outside of the seven-county metropolitan area. 10.8 Sec. 14. [EFFECTIVE DATE.] 10.9 Sections 1, 5, 6, 8, 10, 11, 12, and 13 are effective July 10.10 1, 2003. Sections 2, 3, 4, 7, and 9 are effective June 1, 2003. 10.11 Sections 7 and 9 apply to all gasoline, undyed diesel fuel, and 10.12 special fuel in distributor storage on June 1, 2003. 10.13 ARTICLE 2 10.14 METROPOLITAN TRANSPORTATION 10.15 Section 1. [473J.01] [METROPOLITAN TRANSPORTATION AREA.] 10.16 The metropolitan transportation area is the area within the 10.17 counties of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, 10.18 Ramsey, Scott, Sherburne, Washington, and Wright. 10.19 Sec. 2. [473J.02] [HIGHWAY SPENDING IN METROPOLITAN 10.20 TRANSPORTATION AREA.] 10.21 In any year during the period of imposition of the taxes 10.22 authorized in sections 473J.03 and 473J.04, and exclusive of the 10.23 expenditure of these revenues, the percentage of total trunk 10.24 highway fund expenditures attributable to projects in the 10.25 metropolitan transportation area may not vary more than two 10.26 percentage points from the average of the previous five years of 10.27 trunk highway fund metropolitan transportation area expenditures. 10.28 Sec. 3. [473J.03] [SALES TAX.] 10.29 There is imposed a sales and use tax of one-half percent on 10.30 retail sales and uses taxable under chapter 297A that occur in 10.31 the metropolitan transportation area. This tax is in addition 10.32 to the taxes imposed by sections 297A.62, subdivision 1, and 10.33 297A.63, subdivision 1. 10.34 Sec. 4. [473J.04] [MOTOR VEHICLE EXCISE TAX.] 10.35 There is imposed an excise tax of $20 per motor vehicle 10.36 purchased by a retail consumer from any person engaged within 11.1 the metropolitan transportation area in the business of selling 11.2 motor vehicles at retail. 11.3 Sec. 5. [473J.05] [TAX COLLECTION.] 11.4 The taxes imposed by sections 473J.03 and 473J.04 must be 11.5 reported and paid to the commissioner of revenue with the taxes 11.6 imposed by chapter 297A and in accordance with an agreement 11.7 between the counties in the metropolitan transportation area and 11.8 the commissioner of revenue. The taxes are subject to the same 11.9 interest, penalty, and other provisions provided for sales and 11.10 use taxes under chapters 289A and 297A. The commissioner has 11.11 the same powers to assess and collect the taxes as are given the 11.12 commissioner in chapters 270, 289A, and 297A to assess and 11.13 collect sales and use taxes. The commissioner shall deposit the 11.14 revenues, including interest and penalties, derived from the 11.15 taxes in the state treasury and credit them to the general fund. 11.16 Sec. 6. [473J.06] [METROPOLITAN TRANSPORTATION FUND.] 11.17 Subdivision 1. [TRANSFER TO FUND.] (a) The revenue 11.18 collected under section 473J.05, less the cost of collection, is 11.19 appropriated from the general fund to the commissioner of 11.20 finance for transfer to a special account in the state treasury, 11.21 to be called the metropolitan transportation fund. 11.22 (b) The cost of collection equals the direct and indirect 11.23 costs of the department of revenue to administer, audit, and 11.24 collect the revenue, plus the metropolitan transportation area's 11.25 proportionate share of the indirect cost of administering all 11.26 local sales and use taxes under section 297A.99. 11.27 Subd. 2. [USE OF FUND.] (a) Money in the metropolitan 11.28 transportation fund is appropriated as follows: 11.29 (1) 25 percent to the metropolitan council for acquisition 11.30 of buses, highway shoulder improvements for buses, and other 11.31 capital expenses related to transit in the metropolitan 11.32 transportation area; and 11.33 (2) 75 percent to the commissioner of transportation for 11.34 highway system improvement, replacement, and bottleneck-removal 11.35 projects and metropolitan system highway expansion projects in 11.36 the metropolitan transportation area. This money must be used 12.1 to construct the projects identified in the metropolitan 12.2 council's 25-year plan and the department of transportation's 12.3 20-year district plans that cover the counties in the 12.4 metropolitan transportation area. 12.5 (b) The metropolitan council may provide grants to the 12.6 commissioner of transportation for the implementation of transit 12.7 capital improvements in counties that are outside of the 12.8 metropolitan area as defined in section 473.121, subdivision 2, 12.9 but are within the metropolitan transportation area. 12.10 Sec. 7. [APPLICATION.] 12.11 This article applies in the counties of Anoka, Carver, 12.12 Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, 12.13 Washington, and Wright. 12.14 Sec. 8. [EFFECTIVE DATE; BALLOT QUESTION; EXPIRATION.] 12.15 (a) This article is effective upon its approval by a 12.16 majority of the voters voting on the question in the 12.17 metropolitan transportation area at the general election in 12.18 November 2003 and sections 3 and 4 apply to sales made on and 12.19 after July 1, 2004. The question on the ballot must be: 12.20 "Shall an additional tax of up to one-half of one percent 12.21 be imposed for ten years on sales in the 11-county metropolitan 12.22 area to pay for transportation improvements to relieve traffic 12.23 congestion in the metropolitan area? 12.24 Yes ....... 12.25 No ........" 12.26 (b) This article expires June 30, 2014.