SF 1986

1st Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to transportation; prohibiting payment of 
  1.3             statewide indirect costs from dedicated highway funds; 
  1.4             establishing a multimodal transportation fund with 
  1.5             statewide surface transportation account and transit 
  1.6             account; indexing gasoline and special fuels tax and 
  1.7             dedicating revenues to trunk highway bond account; 
  1.8             increasing gasoline and special fuels tax; proposing 
  1.9             constitutional amendment to dedicate 75 percent of 
  1.10            motor vehicle sales tax to transportation and transit; 
  1.11            authorizing issuance of trunk highway bonds; 
  1.12            appropriating money; amending Minnesota Statutes 2000, 
  1.13            sections 16A.127, by adding a subdivision; 167.51, 
  1.14            subdivision 2; 174.32, subdivision 5; 296A.07, 
  1.15            subdivision 3, by adding a subdivision; 296A.08, 
  1.16            subdivision 2, by adding a subdivision; 297B.09, 
  1.17            subdivision 1; proposing coding for new law in 
  1.18            Minnesota Statutes, chapters 174; 270; repealing 
  1.19            Minnesota Statutes 2000, section 174.32, subdivisions 
  1.20            2, 4. 
  1.21  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.22     Section 1.  Minnesota Statutes 2000, section 16A.127, is 
  1.23  amended by adding a subdivision to read: 
  1.24     Subd. 10.  [HIGHWAY FUNDS.] Statewide indirect cost 
  1.25  liabilities may not be accrued to the highway user tax 
  1.26  distribution fund, trunk highway fund, county state-aid highway 
  1.27  fund, municipal state-aid street fund, or multimodal 
  1.28  transportation fund with respect to expenditures from those 
  1.29  funds.  These liabilities must be accrued to another source of 
  1.30  state funds. 
  1.31     Sec. 2.  Minnesota Statutes 2000, section 167.51, 
  1.32  subdivision 2, is amended to read: 
  1.33     Subd. 2.  [TRANSFERS.] All money transferred from the trunk 
  2.1   highway fund or from any other source to the Minnesota trunk 
  2.2   highway bond account and all income from the investment thereof 
  2.3   shall be available for the payment of outstanding state trunk 
  2.4   highway bonds and interest thereon, whether or not issued 
  2.5   pursuant to section 167.50, in the same manner as the proceeds 
  2.6   of taxes paid into the trunk highway fund, and so much thereof 
  2.7   as may be necessary is appropriated for such payments.  The 
  2.8   legislature may appropriate and transfer to the Minnesota trunk 
  2.9   highway bond account, for the payment of such trunk highway 
  2.10  bonds and interest thereon, any other moneys in the state 
  2.11  treasury not otherwise appropriated.  The commissioner of 
  2.12  finance and the state treasurer are directed to make the 
  2.13  appropriate entries in the accounts of the respective funds.  
  2.14     Sec. 3.  Minnesota Statutes 2000, section 174.32, 
  2.15  subdivision 5, is amended to read: 
  2.16     Subd. 5.  [ELIGIBLE ACTIVITY EXPENDITURES FROM 
  2.17  FUND.] Activities eligible for assistance under the program 
  2.18  include but are not limited to: 
  2.19     (1) planning and engineering design for transit services; 
  2.20     (2) capital assistance to purchase or refurbish transit 
  2.21  vehicles, purchase rail lines and associated facilities for 
  2.22  light rail transit, purchase rights-of-way, and other capital 
  2.23  expenditures necessary to provide a transit service; and 
  2.24     (3) other assistance for public transit services.  Money in 
  2.25  the transit assistance fund may be spent by law only for 
  2.26  operating assistance.  
  2.27     Sec. 4.  [174.40] [MULTIMODAL TRANSPORTATION FUND.] 
  2.28     Subdivision 1.  [CREATION AND PURPOSE; ACCOUNTS.] (a) A 
  2.29  multimodal transportation fund is created in the state 
  2.30  treasury.  The fund consists of 21 percent of the net proceeds 
  2.31  of the tax imposed under chapter 297B and other money as 
  2.32  provided by law.  A transit account and a statewide surface 
  2.33  transportation account are created within the fund. 
  2.34     (b) Twenty-five percent of the revenue in the fund must be 
  2.35  deposited to the transit account to be available for 
  2.36  appropriation to the metropolitan council for transit capital, 
  3.1   operating, and associated development purposes. 
  3.2      (c) Seventy-five percent of the revenue in the fund must be 
  3.3   deposited to the statewide surface transportation account to be 
  3.4   available for appropriation to the commissioner of 
  3.5   transportation for statewide surface transportation purposes 
  3.6   including, but not limited to, trunk highway construction and 
  3.7   reconstruction, transit capital and service expansion needs 
  3.8   outside the metropolitan area, commuter rail capital and 
  3.9   operating expenses, and right-of-way preservation.  These funds 
  3.10  are intended to augment, not supplant, existing funds 
  3.11  appropriated for the same purposes. 
  3.12     Subd. 2.  [INVESTMENT OF FUND.] Money in the multimodal 
  3.13  transportation fund must be invested by the state board of 
  3.14  investment.  All earnings from investments must be credited to 
  3.15  the respective accounts within the multimodal transportation 
  3.16  fund in proportion to their account balances. 
  3.17     Sec. 5.  [174.41] [USE OF MULTIMODAL TRANSPORTATION FUND.] 
  3.18     Subdivision 1.  [STATEWIDE SURFACE TRANSPORTATION ACCOUNT.] 
  3.19  For expenditures of funds from the statewide surface 
  3.20  transportation account, the commissioner shall give priority to 
  3.21  projects that are on the interregional corridor system as 
  3.22  described in the state transportation plan, are bottlenecks, or 
  3.23  provide advantages to transit and can be delivered in a timely 
  3.24  manner. 
  3.25     Subd. 2.  [TRANSIT ACCOUNT.] For expenditures of funds from 
  3.26  the transit account, the metropolitan council shall give 
  3.27  priority to transit service expansion and transit capital 
  3.28  projects that are consistent with the regional master transit 
  3.29  plan, sector studies, and the transit capital improvement 
  3.30  program. 
  3.31     Sec. 6.  [270.081] [TAXES CREDITED TO MINNESOTA TRUNK 
  3.32  HIGHWAY BOND ACCOUNT.] 
  3.33     The revenue credited to the trunk highway fund from a tax 
  3.34  rate adjustment imposed under section 296A.07, subdivision 5, 
  3.35  must be credited to the bond proceeds account in the trunk 
  3.36  highway fund. 
  4.1      Sec. 7.  Minnesota Statutes 2000, section 296A.07, 
  4.2   subdivision 3, is amended to read: 
  4.3      Subd. 3.  [RATE OF TAX.] The gasoline excise tax is imposed 
  4.4   at the following rates: 
  4.5      (1) E85 is taxed at the rate of 14.2 16.3 cents per gallon; 
  4.6      (2) M85 is taxed at the rate of 11.4 13.1 cents per gallon; 
  4.7   and 
  4.8      (3) all other gasoline is taxed at the rate of 20 23 cents 
  4.9   per gallon. 
  4.10     Sec. 8.  Minnesota Statutes 2000, section 296A.07, is 
  4.11  amended by adding a subdivision to read: 
  4.12     Subd. 5.  [ANNUAL GASOLINE TAX RATE ADJUSTMENT.] (a) Before 
  4.13  April 1 of each year, the commissioner of revenue shall 
  4.14  recompute and publish the rate of the gasoline excise tax.  The 
  4.15  new rate per gallon must be calculated by multiplying the rate 
  4.16  in effect at the time of the calculation by an amount obtained 
  4.17  under paragraph (b).  The new rate must be rounded to the 
  4.18  nearest 0.1 cent and is effective on April 1 of each year. 
  4.19     (b) Divide the annual average United States Consumer Price 
  4.20  Index for all urban consumers, United States city average, as 
  4.21  determined by the United States Department of Labor for the 
  4.22  previous year by that annual average for the year before the 
  4.23  previous year. 
  4.24     Sec. 9.  Minnesota Statutes 2000, section 296A.08, 
  4.25  subdivision 2, is amended to read: 
  4.26     Subd. 2.  [RATE OF TAX.] The special fuel excise tax is 
  4.27  imposed at the following rates: 
  4.28     (1) Liquefied petroleum gas or propane is taxed at the rate 
  4.29  of 15 17.3 cents per gallon. 
  4.30     (2) Liquefied natural gas is taxed at the rate of 12 13.8 
  4.31  cents per gallon. 
  4.32     (3) Compressed natural gas is taxed at the rate 
  4.33  of $1.739 $2 per thousand cubic feet; or 20 23 cents per 
  4.34  gasoline equivalent, as defined by the National Conference on 
  4.35  Weights and Measures, which is 5.66 pounds of natural gas. 
  4.36     (4) All other special fuel is taxed at the same rate as the 
  5.1   gasoline excise tax as specified in section 296A.07, subdivision 
  5.2   2.  The tax is payable in the form and manner prescribed by the 
  5.3   commissioner. 
  5.4      Sec. 10.  Minnesota Statutes 2000, section 296A.08, is 
  5.5   amended by adding a subdivision to read: 
  5.6      Subd. 7.  [ANNUAL SPECIAL FUEL TAX RATE ADJUSTMENT.] (a) 
  5.7   Before April 1 of each year, the commissioner of revenue shall 
  5.8   recompute and publish the rate of the special fuel tax.  The new 
  5.9   rate must be calculated by multiplying the rate in effect at the 
  5.10  time of the calculation by an amount obtained under paragraph 
  5.11  (b).  The new rate must be rounded to the nearest 0.1 cent and 
  5.12  is effective on April 1 of each year. 
  5.13     (b) Divide the annual average United States Consumer Price 
  5.14  Index for all urban consumers, United States city average, as 
  5.15  determined by the United States Department of Labor for the 
  5.16  previous year by that annual average for the year before the 
  5.17  previous year. 
  5.18     Sec. 11.  Minnesota Statutes 2000, section 297B.09, 
  5.19  subdivision 1, is amended to read: 
  5.20     Subdivision 1.  [GENERAL FUND SHARE.] Money collected and 
  5.21  received under this chapter must be deposited as provided in 
  5.22  this subdivision.  
  5.23     Thirty-two percent of the money collected and received must 
  5.24  be deposited in the highway user tax distribution fund, 22 
  5.25  percent of the money collected and received must be deposited in 
  5.26  the transit assistance fund, 21 percent of the money collected 
  5.27  and received must be deposited in the multimodal transportation 
  5.28  fund, and the remaining 68 25 percent of the money must be 
  5.29  deposited in the general fund.  
  5.30     Sec. 12.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
  5.31     An amendment is proposed to the Minnesota Constitution, 
  5.32  article XIV.  If the amendment is adopted, article XIV will be 
  5.33  amended by adding a section to read: 
  5.34     Sec. 12.  Of the net proceeds from any tax imposed by the 
  5.35  state on the sale of new and used motor vehicles, not less than 
  5.36  32 percent must be deposited in the highway user tax 
  6.1   distribution fund exclusively for highway purposes, not less 
  6.2   than 22 percent must be deposited in a fund for operating 
  6.3   assistance to public transit systems in the state, and not less 
  6.4   than 21 percent must be deposited in a fund for multimodal 
  6.5   surface transportation purposes. 
  6.6      Sec. 13.  [SUBMISSION TO VOTERS.] 
  6.7      The constitutional amendment proposed in section 12 must be 
  6.8   submitted to the people at the 2002 general election.  The 
  6.9   question submitted must be: 
  6.10     "Shall the Minnesota Constitution be amended to require 
  6.11  that of the proceeds from the state sales tax on motor vehicles 
  6.12  at least: 
  6.13     (1) 32 percent be deposited in the highway user tax 
  6.14  distribution fund for highway purposes; 
  6.15     (2) 22 percent be deposited in a fund for operating 
  6.16  assistance to public transit systems; and 
  6.17     (3) 21 percent be deposited in a fund for multimodal 
  6.18  surface transportation purposes? 
  6.19                                     Yes .......
  6.20                                     No ........"
  6.21     Sec. 14.  [TRUNK HIGHWAY BONDS; ISSUANCE.] 
  6.22     The commissioner of finance is authorized and directed, on 
  6.23  recommendation of the commissioner of transportation, to issue 
  6.24  and sell Minnesota trunk highway bonds under Minnesota Statutes, 
  6.25  sections 167.50 to 167.52, and the Minnesota Constitution, 
  6.26  article XI, sections 4 to 7, and article XIV, section 11, at 
  6.27  such times and in such amounts as are determined by the 
  6.28  commissioner of transportation.  Bonds issued under this section 
  6.29  are authorized in an aggregate principal amount of 
  6.30  $900,000,000.  Not more than $90,000,000 of the bonds authorized 
  6.31  under this section may be sold in any fiscal year.  
  6.32     Sec. 15.  [APPROPRIATIONS.] 
  6.33     $90,000,000 is appropriated to the commissioner of 
  6.34  transportation in fiscal year 2004 and in each fiscal year 
  6.35  through the fiscal year ending June 30, 2013, or until a total 
  6.36  of $900,000,000 in trunk highway bond proceeds has been received 
  7.1   by the commissioner of transportation.  This appropriation is 
  7.2   from the separate bond proceeds account in the trunk highway 
  7.3   fund.  This appropriation is for reconstructing and replacing 
  7.4   key bridges on the state trunk highway system; for constructing, 
  7.5   improving, and maintaining the interregional corridor system as 
  7.6   identified by the commissioner; for improving highways 
  7.7   classified as bottlenecks by the commissioner; and for acquiring 
  7.8   properties necessary to locate, construct, reconstruct, improve, 
  7.9   and maintain the trunk highway system.  Before this 
  7.10  appropriation may be used for the interregional corridor system, 
  7.11  improvement of bottleneck areas, or right-of-way acquisition, 
  7.12  the commissioner of transportation must demonstrate to the 
  7.13  commissioner of finance that the proposed use of debt financing 
  7.14  to accelerate the project is a cost-effective investment of 
  7.15  state funds. 
  7.16     Sec. 16.  [REPEALER.] 
  7.17     Minnesota Statutes 2000, section 174.32, subdivisions 2 and 
  7.18  4, are repealed. 
  7.19     Sec. 17.  [EFFECTIVE DATE.] 
  7.20     Section 1 is effective July 1, 2001.  Sections 2 to 6, 8, 
  7.21  and 10 to 14 are effective July 1, 2003, except that if the 
  7.22  constitutional amendment proposed in section 12 is not adopted 
  7.23  at the 2002 general election, sections 3 to 5 and section 10 
  7.24  shall not take effect.  Sections 7 and 9 are effective January 
  7.25  1, 2003.