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SF 798

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to transportation; increasing motor fuel tax rates and providing for
annual adjustments; expanding authority of counties to levy wheelage taxes;
increasing base tax on passenger automobiles; authorizing counties to impose
sales tax for transportation purposes; authorizing cities and counties to impose
transportation impact fees; authorizing issuance of state trunk highway bonds for
trunk highway improvements; authorizing issuance of state transportation bonds
for construction and reconstruction of key local bridges; modifying distribution
of county state-aid highway fund; exempting certain criteria from Administrative
Procedure Act; making clarifying changes; appropriating money; amending
Minnesota Statutes 2006, sections 162.07, subdivision 1, by adding subdivisions;
163.051; 168.013, subdivision 1a; 174.52, subdivision 5; 296A.07, subdivision
3; 296A.08, subdivision 2; proposing coding for new law in Minnesota Statutes,
chapters 296A; 297A; 426.

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

ARTICLE 1

MOTOR FUEL TAXES

Section 1.

Minnesota Statutes 2006, 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 14.2deleted text end new text begin 17.75 new text end cents per gallonnew text begin before June 1, 2008, and
21.3 cents per gallon after May 31, 2008
new text end ;

(2) M85 is taxed at the rate of deleted text begin 11.4deleted text end new text begin 14.25 new text end cents per gallonnew text begin before June 1, 2008, and
17.1 cents per gallon after May 31, 2008
new text end ; and

(3) all other gasoline is taxed at the rate of deleted text begin 20deleted text end new text begin 25 new text end cents per gallonnew text begin before June 1,
2008, and 30 cents per gallon after May 31, 2008
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2007.
new text end

Sec. 2.

Minnesota Statutes 2006, 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 15deleted text end new text begin 18.75 new text end cents per
gallonnew text begin before June 1, 2008, and 22.5 cents per gallon after May 31, 2008new text end .

(b) Liquefied natural gas is taxed at the rate of deleted text begin 12deleted text end new text begin 15 new text end cents per gallonnew text begin before June 1,
2008, and 18 cents per gallon after May 31, 2008
new text end .

(c) Compressed natural gas is taxed at the rate of deleted text begin $1.739deleted text end new text begin $2.174 new text end per thousand cubic
feetdeleted text begin ;deleted text end new text begin ,new text end or deleted text begin 20deleted text end new text begin 25 new text end cents per gasoline equivalent, new text begin before June 1, 2008, and $2.609 per thousand
cubic feet, or 30 cents per gasoline equivalent after May 31, 2008. For purposes of this
paragraph, "gasoline equivalent,"
new text end as defined by the National Conference on Weights and
Measures, deleted text begin whichdeleted text end 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 June 1, 2007.
new text end

Sec. 3.

new text begin [296A.081] ANNUAL ADJUSTMENT.
new text end

new text begin (a) On April 1, 2009, and each April 1 thereafter, the commissioner of revenue
shall recompute and publish the rate of each fuel tax provided for in section 296A.07,
subdivision 3, and 296A.08, subdivision 2. The new rate for each such tax must be
calculated by multiplying the rate in effect at the time of the calculation by an amount
obtained under paragraph (b). The new rate must be rounded to the nearest 0.1 cent and is
effective on June 1 of each year.
new text end

new text begin (b) Divide the annual average United States Consumer Price Index for all urban
consumers, United States city average, as determined by the United States Department of
Labor for the previous year by that annual average for the year before the previous year.
new text end

new text begin (c) By a majority vote, the legislature may suspend the annual adjustment for any
particular year or years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective April 1, 2009.
new text end

ARTICLE 2

MOTOR VEHICLE TAXES

Section 1.

Minnesota Statutes 2006, section 163.051, is amended to read:


163.051 deleted text begin METROPOLITANdeleted text end COUNTY WHEELAGE TAX.

Subdivision 1.

Tax authorized.

The board of commissioners of each deleted text begin metropolitandeleted text end
county is authorized to levy a wheelage tax of deleted text begin $5 for the year 1972 and each subsequent
year thereafter by resolution
deleted text end new text begin up to $20 new text end on each motor vehicle, except motorcycles as
defined in section 169.01, subdivision 4, deleted text begin whichdeleted text end new text begin that new text end is kept in deleted text begin suchdeleted text end new text begin the new text end county when not
in operation and deleted text begin whichdeleted text end new text begin that new text end is subject to annual registration and taxation under chapter
168. The board may provide by resolution for collection of the wheelage tax by county
officials or it may request that the tax be collected by the deleted text begin statedeleted text end registrar deleted text begin of motor vehiclesdeleted text end ,
and the deleted text begin statedeleted text end registrar deleted text begin of motor vehiclesdeleted text end shall collect deleted text begin suchdeleted text end new text begin the new text end tax on behalf of the county if
requested, as provided in subdivision 2.

Subd. 2.

Collection by registrar deleted text begin of motor vehiclesdeleted text end .

The wheelage tax levied by
deleted text begin any metropolitandeleted text end new text begin a new text end county, if made collectible by the deleted text begin statedeleted text end registrar deleted text begin of motor vehiclesdeleted text end ,
deleted text begin shalldeleted text end new text begin must new text end be certified by the county auditor to the registrar not later than August 1 in the
year before the calendar year or years for which the tax is levied, and the registrar shall
collect deleted text begin suchdeleted text end new text begin the new text end tax with the deleted text begin motordeleted text end vehicle deleted text begin taxesdeleted text end new text begin registration new text end on deleted text begin thedeleted text end new text begin each new text end affected deleted text begin vehiclesdeleted text end new text begin
vehicle
new text end for deleted text begin suchdeleted text end new text begin that new text end year deleted text begin or yearsdeleted text end . Every owner and every operator of deleted text begin suchdeleted text end a motor
vehicle new text begin subject to the wheelage tax new text end shall furnish to the registrar all information requested
by the registrar. deleted text begin Nodeleted text end new text begin A new text end state motor vehicle tax on deleted text begin any suchdeleted text end new text begin a new text end motor vehicle deleted text begin for any such
year shall
deleted text end new text begin may not new text end be received or deemed paid unless the applicable wheelage tax is paid
therewith. deleted text begin The proceeds of the wheelage tax levied by any metropolitan county, less any
amount retained by the registrar to pay costs of collection of the wheelage tax, shall be
paid to the commissioner of finance and deposited in the state treasury to the credit of the
county wheelage tax fund of each metropolitan county.
deleted text end

Subd. 2a.

Tax proceeds deposited; costs of collection; appropriation.

Notwithstanding deleted text begin the provisions ofdeleted text end any other law, the deleted text begin statedeleted text end registrar deleted text begin of motor vehiclesdeleted text end
shall deposit the proceeds of the wheelage tax imposed by subdivision 2, to the credit of
the deleted text begin county wheelage taxdeleted text end new text begin road and bridge new text end fund of each deleted text begin metropolitandeleted text end countynew text begin levying the
tax
new text end . The amount necessary to pay the costs of deleted text begin collection of saiddeleted text end new text begin collecting the new text end tax is
appropriated new text begin to the registrar new text end from the deleted text begin county wheelage taxdeleted text end new text begin road and bridge new text end fund of each
deleted text begin metropolitandeleted text end countydeleted text begin to the state registrar of motor vehiclesdeleted text end new text begin levying the taxnew text end .

deleted text begin Subd. 3. deleted text end

deleted text begin Distribution to metropolitan county; appropriation. deleted text end

deleted text begin On or before April
1 in 1972 and each subsequent year, the commissioner of finance shall issue a warrant in
favor of the treasurer of each metropolitan county for which the registrar has collected a
wheelage tax in the amount of such tax then on hand in the county wheelage tax fund.
There is hereby appropriated from the county wheelage tax fund each year, to each
metropolitan county entitled to payments authorized by this section, sufficient moneys
to make such payments.
deleted text end

deleted text begin Subd. 4. deleted text end

deleted text begin Use of tax. deleted text end

deleted text begin The treasurer of each metropolitan county receiving moneys
under subdivision 3 shall deposit such moneys in the county road and bridge fund. The
moneys shall be used for purposes authorized by law which are highway purposes within
the meaning of the Minnesota Constitution, article 14.
deleted text end

deleted text begin Subd. 5. deleted text end

deleted text begin Effect on road and bridge levy. deleted text end

deleted text begin The county auditor of each metropolitan
county shall reduce the amount of the property taxes levied pursuant to law in 1973 for
collection in 1974, by the board of commissioners of such county for the county road
and bridge fund, by the following amount: Anoka County, $341,750; Carver County,
$86,725; Dakota County, $386,165; Hennepin County, $2,728,425; Ramsey County,
$1,276,815; Scott County, $104,805; Washington County, $227,220, and shall spread only
the balance thereof on the tax rolls for collection in 1972. The county auditor shall also
reduce the amount of such taxes levied pursuant to law in 1972 and any subsequent year,
for collection in the respective ensuing years, by the amount of wheelage taxes received
by the county in the 12 months immediately preceding such levy.
deleted text end

deleted text begin Subd. 6. deleted text end

deleted text begin Metropolitan county defined. deleted text end

deleted text begin "Metropolitan county" means any of the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
deleted text end

Subd. 7.

Offenses; penalties; application of other laws.

Any owner or operator of
a motor vehicle who deleted text begin shalldeleted text end willfully deleted text begin give anydeleted text end new text begin gives new text end false information relative to the tax
deleted text begin hereindeleted text end authorized new text begin under this section new text end to the registrar deleted text begin of motor vehiclesdeleted text end or any deleted text begin metropolitandeleted text end
county, or who deleted text begin shalldeleted text end willfully deleted text begin fail or refusedeleted text end new text begin fails or refuses new text end to furnish deleted text begin any suchdeleted text end information,
deleted text begin shall bedeleted text end new text begin is new text end guilty of a misdemeanor. Except as otherwise deleted text begin hereindeleted text end providednew text begin in this sectionnew text end ,
the collection and payment of a wheelage tax and all new text begin related new text end matters deleted text begin relating thereto shall
be
deleted text end new text begin are new text end subject to all deleted text begin provisions of lawdeleted text end new text begin applicable laws new text end relating to collection and payment
of motor vehicle taxes deleted text begin so far as applicabledeleted text end .

Sec. 2.

Minnesota Statutes 2006, section 168.013, subdivision 1a, is amended to read:


Subd. 1a.

Passenger automobile; hearse.

(a) On passenger automobiles as defined
in section 168.011, subdivision 7, and hearses, except as otherwise provided, the tax shall
be deleted text begin $10deleted text end new text begin $35 new text end plus an additional tax equal to 1.25 percent of the base value.

(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 computed upon the base value as provided herein,
during the first and second years of vehicle life shall be computed upon 100 percent of the
base value; for the third and fourth years, 90 percent of such value; for the fifth and sixth
years, 75 percent of such value; for the seventh year, 60 percent of such value; for the
eighth year, 40 percent of such value; for the ninth year, 30 percent of such value; for the
tenth year, ten percent of such value; for the 11th and each succeeding year, the sum of $25.

In no event shall the annual additional tax be less than $25. The total tax under this
subdivision shall not exceed $189 for the first renewal period and shall not exceed $99 for
subsequent renewal periods. The total tax under this subdivision on any vehicle filing its
initial registration in Minnesota in the second year of vehicle life shall not exceed deleted text begin $189deleted text end new text begin
$214
new text end and shall not exceed deleted text begin $99deleted text end new text begin $124 new text end for subsequent renewal periods. The total tax under
this subdivision on any vehicle filing its initial registration in Minnesota in the third or
subsequent year of vehicle life shall not exceed deleted text begin $99deleted text end new text begin $124 new text end and shall not exceed deleted text begin $99deleted text end new text begin $124 new text end in
any subsequent renewal period.

(i) As used in this subdivision and section 168.017, the following terms have the
meanings given: "initial registration" means the 12 consecutive months calendar period
from the day of first registration of a vehicle in Minnesota; and "renewal periods" means
the 12 consecutive calendar months periods following the initial registration period.

ARTICLE 3

SALES TAXES FOR TRANSPORTATION

Section 1.

new text begin [297A.996] LOCAL SALES TAXES FOR TRANSPORTATION.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin A county may by resolution impose a general sales
tax on taxable sales within the county in addition to the taxes imposed under sections
297A.62 to 297A.64 and any other local sales taxes imposed in the county. Revenue from
taxes authorized under this section may only be spent in accordance with subdivision 8.
new text end

new text begin Subd. 2. new text end

new text begin Tax base. new text end

new text begin The tax applies to sales taxable under this chapter that occur
within the county. Taxable services are subject to a county's sales tax if they are performed
either:
new text end

new text begin (1) within the county; or
new text end

new text begin (2) partly within and partly without the county and more of the service is performed
within the county, based on the cost of performance.
new text end

new text begin Subd. 3. new text end

new text begin Use tax. new text end

new text begin A compensating use tax applies, at the same rate as the sales tax,
on the use, storage, distribution, or consumption of tangible personal property or taxable
services.
new text end

new text begin Subd. 4. new text end

new text begin Rate of tax. new text end

new text begin (a) The county board shall by resolution set the rate of the tax,
which except as provided in paragraph (b) may not exceed one-half of one percent.
new text end

new text begin (b) In lieu of imposing the tax authorized under this section at the rate provided in
paragraph (a) on motor vehicles purchased by a retail consumer from any person engaged
within the county in the business of selling motor vehicles at retail, the county board shall
set the tax rate at not more than $20 for each such taxable sale.
new text end

new text begin Subd. 5. new text end

new text begin Taxable price. new text end

new text begin For purposes of the tax authorized under this section the
"taxable price" of a retail sale does not include the state sales tax or any sales tax imposed
by a city within the county on that sale.
new text end

new text begin Subd. 6. new text end

new text begin Application of other laws. new text end

new text begin (a) Section 297A.99, subdivisions 7, 9, 10, and
11, apply to taxes authorized under this section.
new text end

new text begin (b) The commissioner has the same powers to assess and collect the taxes as are
given the commissioner in chapters 270, 289A, and 297A to assess and collect sales
and use taxes.
new text end

new text begin Subd. 7. new text end

new text begin Joint powers agreements. new text end

new text begin Two or more counties may enter into a joint
powers agreement and establish a joint powers board under section 471.59 to exercise the
powers granted to individual counties under subdivision 1.
new text end

new text begin Subd. 8. new text end

new text begin Use of revenue. new text end

new text begin A county receiving revenue from a tax imposed under
subdivision 1 may use the revenue only for:
new text end

new text begin (1) design, engineering, acquisition of real property, construction, reconstruction, or
maintenance of county highways and county state-aid highways;
new text end

new text begin (2) public transit capital improvements; and
new text end

new text begin (3) operating assistance to public transit systems.
new text end

ARTICLE 4

TRANSPORTATION IMPACT FEES

Section 1.

new text begin [426.21] TRANSPORTATION IMPACT FEES.
new text end

new text begin Subdivision 1. new text end

new text begin Fees may be imposed. new text end

new text begin A city or county may by ordinance impose a
transportation impact fee on each building permit it issues. For purposes of this section,
"city" includes statutory and home rule charter cities.
new text end

new text begin Subd. 2. new text end

new text begin Adoption of plan. new text end

new text begin (a) Before imposing a transportation impact fee, a
city or county must adopt a safety and intersection improvement plan that identifies and
estimates the cost of:
new text end

new text begin (1) each intersection that the city or county intends to construct, reconstruct, or
improve within the five-year period covered by the plan, including intersections of a
county highway or city street with a trunk highway where a share of the total cost will be
paid by the city or county; and
new text end

new text begin (2) each significant highway safety hazard that the city or county intends to eliminate
or ameliorate within the five-year period covered by the plan.
new text end

new text begin (b) The plan must provide for a revision of the plan at least once every five years.
new text end

new text begin Subd. 3. new text end

new text begin Use of fees. new text end

new text begin A city or county imposing a transportation impact fee may
spend the revenue from the fee only for projects identified in its safety and intersection
improvement plan.
new text end

new text begin Subd. 4. new text end

new text begin Calculation of fee. new text end

new text begin A city or county imposing a transportation impact fee
under this section must provide by ordinance for:
new text end

new text begin (1) a reasonable classification of all property in the city according to trips generated
by the property on the streets and highways of the city or county imposing the fee;
new text end

new text begin (2) a determination of the average daily number of trips generated by a single-family
dwelling in the city or county; and
new text end

new text begin (3) a trip generation rate for each class of property based on a multiple of the rate
for a single-family dwelling. The transportation impact fee must be based on the trip
generation rate assigned to each class of property. In determining a transportation impact
fee for any property, a city or county may take into consideration the type and loading of
the traffic generated by the property.
new text end

new text begin Subd. 5. new text end

new text begin Exemptions. new text end

new text begin Building permits for the following projects are exempt
from transportation impact fees:
new text end

new text begin (1) alterations or expansions of an existing dwelling unit where no additional units
are created and the use is not changed;
new text end

new text begin (2) construction of accessory buildings or structures that will not increase the
number of trips generated by the property;
new text end

new text begin (3) replacement on the same land of a destroyed or partially destroyed building or
structure with a new building or structure of substantially the same size and use; and
new text end

new text begin (4) any new construction that does not generate trips on a street or highway identified
in the city's or county's safety and intersection improvement plan.
new text end

new text begin Subd. 6. new text end

new text begin Collection. new text end

new text begin A city or county may collect a transportation impact fee at the
time it issues a building permit, or may provide that the fee be paid over a period not to
exceed ten years and at the same time and in the same manner as taxes on the real property
for which the building permit is issued. Payment of a fee that is made at a time other than
the time the building permit is issued is subject to the same interest and penalties as city
or county taxes and special assessments on real property.
new text end

new text begin Subd. 7. new text end

new text begin Notice; hearings. new text end

new text begin An ordinance under this section must provide that before
imposing a transportation impact fee on any building permit the city or county must give
the person to whom the permit is issued a reasonable notice and opportunity for a public
hearing at which the person may present evidence relating to the determination of the fee.
new text end

ARTICLE 5

APPROPRIATIONS AND BOND AUTHORIZATIONS

Section 1. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation; trunk highway fund. new text end

new text begin $100,000,000 is appropriated
from the bond proceeds account in the trunk highway fund to the commissioner of
transportation for improvements to the state trunk highway system. Of this appropriation:
new text end

new text begin (1) $50,000,000 is for improvements to the interregional corridor system as
identified by the commissioner where the improvements are physically located entirely or
primarily outside the seven-county metropolitan area; and
new text end

new text begin (2) $50,000,000 is for the elimination of traffic bottlenecks on arterial highways
located entirely within the seven-county metropolitan area.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation; state transportation fund. new text end

new text begin $50,000,000 is appropriated
from the state transportation fund to the commissioner of transportation for grants under
Minnesota Statutes, section 174.50, to match federal money and to replace or rehabilitate
local deficient bridges. Political subdivisions may use grants made under this subdivision
to construct or reconstruct bridges, including:
new text end

new text begin (1) matching federal aid grants to construct or reconstruct key bridges;
new text end

new text begin (2) paying the costs of preliminary engineering and environmental studies authorized
under Minnesota Statutes, section 174.50, subdivision 6a;
new text end

new text begin (3) paying the costs to abandon an existing bridge that is deficient and in need of
replacement, but where no replacement will be made; and
new text end

new text begin (4) paying the costs to construct a road or street to facilitate the abandonment of
an existing bridge determined by the commissioner to be deficient, if the commissioner
determines that construction of the road or street is more economical than replacing the
existing bridge.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation; bond proceeds fund. new text end

new text begin $50,000,000 is appropriated from
the bond proceeds fund to the commissioner of transportation for deposit in the local road
improvement fund. The commissioner shall credit the amount so appropriated to the local
account for routes of regional significance.
new text end

Sec. 2. new text begin BOND SALE AUTHORIZATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Trunk highway bonds. new text end

new text begin To provide the money appropriated in
section 1, subdivision 1, from the bond proceeds account in the trunk highway fund,
the commissioner of finance shall sell and issue bonds of the state in an amount up to
$100,000,000 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 on the sale of
the bonds, must be credited to the bond proceeds account in the trunk highway fund.
new text end

new text begin Subd. 2. new text end

new text begin Transportation bonds. new text end

new text begin To provide the money appropriated from the
state transportation fund under section 1, subdivision 2, the commissioner of finance
shall, on request of the commissioner of transportation, issue and sell Minnesota state
transportation bonds for the purposes provided in Minnesota Statutes, section 174.51,
subdivision 1, in the aggregate principal amount of $50,000,000 in the manner and on
the conditions prescribed in Minnesota Statutes, section 174.51, and in the Minnesota
Constitution, article XI. The proceeds of the bonds must be deposited in the Minnesota
state transportation fund for expenditure according to section 1, subdivision 2, and
Minnesota Statutes, section 174.50.
new text end

new text begin Subd. 3. new text end

new text begin State bonds. new text end

new text begin To provide the money appropriated from the bond proceeds
fund under section 1, subdivision 3, the commissioner of finance shall sell and issue bonds
of the state in an amount up to $50,000,000 in the manner, on the terms, and with the effect
prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
Constitution, article XI, sections 4 to 7.
new text end

ARTICLE 6

LOCAL ROADS

Section 1.

Minnesota Statutes 2006, section 162.07, subdivision 1, is amended to read:


Subdivision 1.

deleted text begin Formuladeleted text end new text begin Apportionment sum and excess sumnew text end .

deleted text begin After deducting for
administrative costs and for the disaster account and research account and state park roads
as heretofore provided, the remainder of
deleted text end The total sum provided for in section 162.06,
subdivision 1
, deleted text begin shall bedeleted text end new text begin isnew text end identified as the apportionment sum and deleted text begin shall be apportioned
by the commissioner to the several counties on the basis of the needs of the counties as
determined in accordance with the following formula:
deleted text end new text begin the excess sum.
new text end

(a) deleted text begin An amount equal to ten percent of the apportionment sum shall be apportioned
equally among the 87 counties.
deleted text end new text begin The excess sum is the sum of:
new text end

new text begin (1) revenue attributed to that portion of the gasoline excise tax rate in excess of 20
cents per gallon, and to that portion of the excise tax rate for E85, M85, and special fuels
in excess of the energy equivalent of a gasoline tax rate of 20 cents per gallon;
new text end

new text begin (2) revenue attributed to a change in the passenger vehicle registration tax under
section 168.013, imposed on or after July 1, 2007, that exceeds the amount collected in
fiscal year 2007 multiplied by the annual average United States Consumer Price Index
for all urban consumers, United States city average, as determined by the United States
Department of Labor for the previous year, divided by the annual average for calendar
year 2006; and
new text end

new text begin (3) revenue to the county state-aid highway fund attributable to the motor vehicle
sales tax in excess of fiscal year 2007 revenue.
new text end

(b) deleted text begin An amount equal to ten percent of the apportionment sum shall be apportioned
among the several counties so that each county shall receive of such amount the
percentage that its motor vehicle registration for the calendar year preceding the one last
past, determined by residence of registrants, bears to the total statewide motor vehicle
registration.
deleted text end new text begin The apportionment sum is calculated by subtracting the excess sum from
the remainder of the total sum.
new text end

deleted text begin (c) An amount equal to 30 percent of the apportionment sum shall be apportioned
among the several counties so that each county shall receive of such amount the percentage
that its total lane-miles of approved county state-aid highways bears to the total lane-miles
of approved statewide county state-aid highways. In 1997 and subsequent years no county
may receive, as a result of an apportionment under this clause based on lane-miles rather
than miles of approved county state-aid highways, an apportionment that is less than its
apportionment in 1996.
deleted text end

deleted text begin (d) An amount equal to 50 percent of the apportionment sum shall be apportioned
among the several counties so that each county shall receive of such amount the percentage
that its money needs bears to the sum of the money needs of all of the individual counties;
provided, that the percentage of such amount that each county is to receive shall be
adjusted so that each county shall receive in 1958 a total apportionment at least ten
percent greater than its total 1956 apportionments from the state road and bridge fund;
and provided further that those counties whose money needs are thus adjusted shall
never receive a percentage of the apportionment sum less than the percentage that such
county received in 1958.
deleted text end

Sec. 2.

Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Apportionment sum. new text end

new text begin The commissioner shall reduce the apportionment
sum by a proportionate share of the deductions for administrative costs, disaster account,
research account, and state park road account, and apportion the remainder among the
several counties on the basis of the needs of the counties as follows:
new text end

new text begin (a) An amount equal to ten percent shall be apportioned equally among the 87
counties.
new text end

new text begin (b) An amount equal to ten percent shall be apportioned among the several counties
so that each county shall receive of such amount the percentage that its motor vehicle
registration for the calendar year preceding the one last past, determined by residence of
registrants, bears to the total statewide motor vehicle registration.
new text end

new text begin (c) An amount equal to 30 percent shall be apportioned among the several counties
so that each county shall receive of such amount the percentage that its total lane-miles of
approved county state-aid highways bears to the total lane-miles of approved statewide
county state-aid highways. In 1997 and subsequent years no county may receive, as a
result of an apportionment under this paragraph based on lane-miles rather than miles of
approved county state-aid highways, an apportionment that is less than its apportionment
in 1996.
new text end

new text begin (d) An amount equal to 50 percent shall be apportioned among the several counties
so that each county shall receive of such amount the percentage that its money needs bears
to the sum of the money needs of all of the individual counties.
new text end

Sec. 3.

Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision
to read:


new text begin Subd. 1b. new text end

new text begin Excess sum. new text end

new text begin The commissioner shall reduce the excess sum by a
proportionate share of the deductions for administrative costs, disaster account, research
account, and state park road account, and apportion the remainder among the several
counties on the basis of the needs of the counties as follows:
new text end

new text begin (a) An amount equal to 40 percent must be apportioned among the several counties
so that each county receives of that amount the percentage that its motor vehicle
registration for the calendar year preceding the one last past, determined by residence of
registrants, bears to the total statewide motor vehicle registration.
new text end

new text begin (b) An amount equal to 60 percent must be apportioned among the several counties
so that each county receives of that amount the percentage that its money needs bears to
the sum of the money needs of all of the individual counties.
new text end

Sec. 4.

Minnesota Statutes 2006, section 174.52, subdivision 5, is amended to read:


Subd. 5.

Grant procedures and criteria.

The commissioner shall establish
procedures for statutory or home rule charter cities, towns, and counties to apply for
grants or loans from the fund and criteria to be used to select projects for funding.
The commissioner shall establish these procedures and criteria in consultation with
representatives appointed by the Association of Minnesota Counties, League of Minnesota
Cities, Minnesota Association of Townships, and the appropriate state agency as needed.
The criteria for determining project priority and the amount of a grant or loan must be
based upon consideration of:

(1) the availability of other state, federal, and local funds;

(2) the regional significance of the route;

(3) effectiveness of the proposed project in eliminating a transportation system
deficiency;

(4) the number of persons who will be positively impacted by the project;

(5) the project's contribution to other local, regional, or state economic development
or redevelopment efforts including livestock and other agricultural operations permitted
after the effective date of this section; and

(6) ability of the local unit of government to adequately provide for the safe
operation and maintenance of the facility upon project completion.

new text begin Adoption of procedures and criteria under this subdivision is not subject to the
Administrative Procedure Act.
new text end