SF 75

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/26/2021 09:16am

A bill for an act
relating to public transit; establishing a statewide 25 cent fare for public transit;
requiring a study on eliminating public transit fares; requiring a report;
appropriating money; amending Minnesota Statutes 2020, sections 174.23, by
adding a subdivision; 473.388, by adding a subdivision; 473.408, by adding a
subdivision; repealing Minnesota Statutes 2020, section 473.408, subdivisions 2,
2a, 2b.

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

Section 1.

Minnesota Statutes 2020, section 174.23, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Fares. new text end

new text begin The commissioner of transportation shall require each transit service
provider that receives financial assistance pursuant to sections 174.21 to 174.27 to establish
and enforce a maximum fare of 25 cents for all transit system rides.
new text end

Sec. 2.

Minnesota Statutes 2020, section 473.388, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Fares. new text end

new text begin A replacement service provider must establish and enforce a maximum
fare of 25 cents for all bus transit routes. The provider may provide services for reduced or
free rates as provided in section 473.408.
new text end

Sec. 3.

Minnesota Statutes 2020, section 473.408, is amended by adding a subdivision to
read:

new text begin Subd. 2c. new text end

new text begin Fares. new text end

new text begin The Metropolitan Council must establish and enforce a maximum fare
of 25 cents for all bus and light rail transit services in the metropolitan area. The council
may provide services for reduced or free rates as provided in this section.
new text end

Sec. 4. new text begin LEGISLATIVE FINDINGS AND PURPOSE; FARE ELIMINATION STUDY
AND REPORT.
new text end

new text begin Subdivision 1. new text end

new text begin Legislative findings and purpose. new text end

new text begin (a) The legislature finds it is in the
public interest to address traffic congestion and reduce harmful vehicle emissions by
increasing transit ridership. Research has shown that decreasing or eliminating transit fares
increases ridership and that increasing transit fares decreases ridership. Increasing transit
ridership through reducing or eliminating fares is likely the most cost-effective means to
address overall traffic congestion in the metropolitan area and to address transportation
needs for people in cities throughout Minnesota.
new text end

new text begin (b) Passenger fares currently cover only a fraction of total transit costs. Consequently,
decreasing or eliminating fares has a relatively low impact on overall transit budgets.
new text end

new text begin (c) The significant ridership increase resulting from decreasing or eliminating fares
would likely lead to more frequent service and the addition of transit routes, thereby making
transit a viable option for an increased number of people and further increasing ridership.
new text end

new text begin (d) Dramatically decreasing or eliminating transit fares uses market incentives to add
ridership and increase the efficiency and cost-effectiveness of Minnesota's overall
transportation system. A significant increase in transit ridership would reduce traffic
congestion at a lower cost than other transportation improvements while saving money for
many low-income riders.
new text end

new text begin Subd. 2. new text end

new text begin Fare elimination study. new text end

new text begin By January 15, 2023, the commissioner of
transportation, in coordination with the Metropolitan Council, must submit a report to the
chairs and ranking minority members of the legislative committees with jurisdiction over
transportation policy and finance. The report must include, at a minimum:
new text end

new text begin (1) the estimated costs of eliminating fares on public transit across the state;
new text end

new text begin (2) an analysis of whether eliminating fares on public transit would reduce traffic
congestion and vehicle emissions;
new text end

new text begin (3) an analysis of whether eliminating fares on public transit would increase ridership;
new text end

new text begin (4) a discussion of other benefits or drawbacks of eliminating fares on public transit;
and
new text end

new text begin (5) a recommendation on whether public transit fares should be eliminated.
new text end

Sec. 5. new text begin APPROPRIATION; METROPOLITAN COUNCIL.
new text end

new text begin (a) $....... in fiscal year 2022 and $....... in fiscal year 2023 are appropriated from the
general fund to the Metropolitan Council for metropolitan transit to replace revenue lost by
lower fares.
new text end

new text begin (b) $....... in fiscal year 2022 and $....... in fiscal year 2023 are appropriated from the
general fund to the Metropolitan Council for the increased incremental costs of providing
transit service to additional transit riders.
new text end

Sec. 6. new text begin APPROPRIATION; DEPARTMENT OF TRANSPORTATION.
new text end

new text begin (a) $....... in fiscal year 2022 and $....... in fiscal year 2023 are appropriated from the
general fund to the commissioner of transportation to provide assistance to greater Minnesota
transit systems described in section 1 to replace revenues lost by lower fares.
new text end

new text begin (b) $....... in fiscal year 2022 and $....... in fiscal year 2023 are appropriated from the
general fund to the commissioner of transportation to provide assistance to greater Minnesota
transit systems described in section 1 to pay for increased incremental costs of providing
service to additional transit riders.
new text end

new text begin (c) $....... in fiscal year 2022 is appropriated from the general fund to the commissioner
of transportation for the report required by section 4.
new text end

new text begin (d) The appropriations in this section are in addition to assistance provided by, and not
subject to the limitations of, the public transit participation program.
new text end

Sec. 7. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, section 473.408, subdivisions 2, 2a, and 2b, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 21-00685

473.408 FARE POLICY.

Subd. 2.

Fare policy.

(a) Fares and fare collection systems shall be established and administered to accomplish the following purposes:

(1) to encourage and increase transit and paratransit ridership with an emphasis on regular ridership;

(2) to restrain increases in the average operating subsidy per passenger;

(3) to ensure that no riders on any route pay more in fares than the average cost of providing the service on that route;

(4) to ensure that operating revenues are proportioned to the cost of providing the service so as to reduce any disparity in the subsidy per passenger on routes in the transit system; and

(5) to implement the social fares as set forth in subdivision 2b.

(b) The plan must contain a statement of the policies that will govern the imposition of user charges for various types of transit service and the policies that will govern decisions by the council to change fare policy.

Subd. 2a.

Regular route fares.

The council shall establish and enforce uniform fare policies for regular route transit in the metropolitan area. The policies must be consistent with the requirements of this section and the council's transportation policy plan. The council and other operators shall charge a base fare and any surcharges for peak hours and distance of service in accordance with the council's fares policies. The council shall approve all fare schedules.

Subd. 2b.

Social fares.

For the purposes of raising revenue for improving public safety on transit vehicles and at transit hubs or stops, the council shall review and may adjust its social fares as they relate to passengers under the age of 18 during high crime times provided that the increased revenues are dedicated to improving the safety of all passengers.