SF 1376

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 09/10/2015 02:06pm

A bill for an act
relating to transportation; providing for active transportation programs to support
bicycle, pedestrian, and other nonmotorized transportation activities; dedicating
revenues from the sales tax on bicycles to the active transportation program;
requiring a legislative report; amending Minnesota Statutes 2014, section
297A.94; proposing coding for new law in Minnesota Statutes, chapter 174.

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

Section 1.

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 metropolitan
counties, as defined in section 473.121, subdivision 4, 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 metropolitan counties,
as defined in section 473.121, subdivision 4, 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 Minnesota Constitution, article XI,
section 5, clause (a), requires that state general obligation bonds be issued to finance only
the acquisition or betterment of public land, buildings, and other public improvements of
a capital nature. The legislature has determined that many nonmotorized transportation
infrastructure projects will constitute betterments and capital improvements within the
meaning of the Minnesota Constitution 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 concentration 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. 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. 2.

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) 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.

(f) The revenue dedicated under paragraph (e) 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 (e) 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 (e) must be allocated for field operations.

new text begin (g) Beginning July 15, 2016, and by July 15 of each year, the commissioner of
revenue shall transfer from the general fund to the active transportation account under
section 174.38, subdivision 3, an amount equal to the estimated revenues, including
interest and penalties, collected in tax from the sale or purchase of bicycles. Beginning
June 30, 2016, and by June 30 of every fourth year thereafter, the commissioner of
revenue must estimate the percentage of total sales tax revenues collected in the previous
calendar year that is attributable to sales and purchases of bicycles, based on available
federal data and Department of Revenue consumption models. The amount of sales tax
revenue to be transferred to the active transportation account on each July 15 is equal
to the most recently calculated percentage estimate under this paragraph multiplied by
the total sales tax revenues collected in the previous calendar year. For purposes of this
section, "bicycle" has the meaning given in section 169.011, subdivision 4.
new text end

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.

Sec. 3. 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