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SF 2375

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/08/2021 08:05am

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

Current Version - as introduced

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A bill for an act
relating to transit; requiring the Department of Transportation to administer the
replacement service provider program; amending the allocation of motor vehicle
sales tax revenue; amending Minnesota Statutes 2020, sections 16A.88, subdivisions
1a, 2; 297B.09, subdivision 1; proposing coding for new law in Minnesota Statutes,
chapter 174; repealing Minnesota Statutes 2020, section 473.388, subdivisions 1,
2, 3, 4, 4a, 5, 7.

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

Section 1.

Minnesota Statutes 2020, section 16A.88, subdivision 1a, is amended to read:


Subd. 1a.

Greater Minnesota transit account.

The greater Minnesota transit account
is established within the transit assistance fund in the state treasury. Money in the account
is annually appropriated to the commissioner of transportation for assistance to transit
systems outside the metropolitan area under section 174.24new text begin and to transit systems within
the metropolitan area under section 174.46
new text end
. The commissioner may use up to $408,000 in
fiscal year 2008 and $416,000 in fiscal year 2009 and thereafter for administration of the
transit program. The commissioner shall use the account for transit operations as provided
in deleted text beginsectiondeleted text endnew text begin sectionsnew text end 174.24new text begin and 174.46new text end and related program administration.

Sec. 2.

Minnesota Statutes 2020, section 16A.88, subdivision 2, is amended to read:


Subd. 2.

Metropolitan area transit account.

The metropolitan area transit account is
established within the transit assistance fund in the state treasury. All money in the account
is annually appropriated to the Metropolitan Council for the funding of transit systems
within the metropolitan area under sections 473.384, 473.386, 473.387, deleted text begin473.388,deleted text end and 473.405
to 473.449.

Sec. 3.

new text begin [174.46] REPLACEMENT SERVICE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin A replacement service program is established to
continue the metropolitan transit service demonstration program established in Minnesota
Statutes 1982, section 174.265, and Minnesota Statutes 2020, section 473.388, as provided
in this section.
new text end

new text begin Subd. 2. new text end

new text begin Replacement service; eligibility. new text end

new text begin (a) The commissioner may provide assistance
under the program to a statutory or home rule charter city or town or combination thereof,
that:
new text end

new text begin (1) is located in the metropolitan transit taxing district;
new text end

new text begin (2) is not served by the Metropolitan Council bus service or is served only with
Metropolitan Council bus routes which begin or end within the applying city or town or
combination thereof; and
new text end

new text begin (3) has fewer than four scheduled runs of the Metropolitan Council's bus service during
off-peak hours as defined by the Metropolitan Council.
new text end

new text begin (b) Eligible cities or towns or combinations thereof may apply on behalf of a transit
operator with whom they propose to contract for service.
new text end

new text begin (c) The commissioner may not provide assistance under this section to a statutory or
home rule charter city or town unless the city or town:
new text end

new text begin (i) was receiving assistance under Minnesota Statutes 1982, section 174.265, by July 1,
1984,
new text end

new text begin (ii) had submitted an application for assistance under that section by July 1, 1984, or
new text end

new text begin (iii) had submitted a letter of intent to apply for assistance under that section by July 1,
1984, and submits an application for assistance under this section by July 1, 1988. A statutory
or home rule charter city or town has an additional 12-month extension if it notified the
former regional transit board before July 1, 1988, that the city or town is in the process of
completing a transportation evaluation study that includes an assessment of the local transit
needs of the city or town.
new text end

new text begin Subd. 3. new text end

new text begin Application for assistance. new text end

new text begin An application for assistance under this section
must:
new text end

new text begin (1) describe the existing service provided to the applicant by the Metropolitan Council,
including the estimated number of passengers carried and the routes, schedules, and fares;
new text end

new text begin (2) describe the transit service proposed for funding under the demonstration program,
including the anticipated number of passengers and the routes, schedules, and fares; and
new text end

new text begin (3) indicate the total amount of available local transit funds, the portion of the available
local transit funds proposed to be used to subsidize replacement services, and the amount
of assistance requested for the replacement services.
new text end

new text begin Subd. 4. new text end

new text begin Financial assistance; base allocation. new text end

new text begin (a) The commissioner must grant
financial assistance if (1) the service of the statutory or home rule charter city, town, or
combination, replaces the Metropolitan Council's service to the statutory or home rule charter
city, town, or combination, and (2) the service meets the needs of the recipient at least as
efficiently and effectively as the Metropolitan Council's service.
new text end

new text begin (b) The amount of assistance which the commissioner must provide to a system under
this section must not be less than the sum of (1) the amounts calculated under paragraph
(c), and (2) the amount calculated under subdivision 5.
new text end

new text begin (c) The financial assistance base allocation for each replacement service municipality
is calculated as:
new text end

new text begin (1) an amount equal to 4.3 percent of the total state revenues generated from the taxes
imposed under chapter 297B for the current fiscal year; times
new text end

new text begin (2) the ratio of:
new text end

new text begin (i) the transit operating assistance grants received under this subdivision by the
municipality in calendar year 2001 or the tax revenues for transit services levied by the
municipality for taxes payable in 2001, including that portion of the levy derived from the
areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of the
municipality's aid under Minnesota Statutes 2002, section 273.1398, subdivision 2,
attributable to the transit levy; to
new text end

new text begin (ii) the total transit operating assistance grants received under this subdivision in calendar
year 2001 or the tax revenues for transit services levied by all replacement service
municipalities under this section for taxes payable in 2001, including that portion of the
levy derived from the areawide pool under section 473F.08, subdivision 3, clause (a), plus
the portion of homestead and agricultural credit aid under Minnesota Statutes 2002, section
273.1398, subdivision 2, attributable to nondebt transit levies; times
new text end

new text begin (3) the ratio of:
new text end

new text begin (i) the municipality's total taxable market value for taxes payable in 2006 divided by the
municipality's total taxable market value for taxes payable in 2001; to
new text end

new text begin (ii) the total taxable market value of all property located in replacement service
municipalities for taxes payable in 2006 divided by the total taxable market value of all
property located in replacement service municipalities for taxes payable in 2001.
new text end

new text begin (d) The commissioner must pay the amount to be provided to the recipient under this
subdivision from the funds the council receives in the metropolitan area transit account
under section 16A.88.
new text end

new text begin Subd. 5. new text end

new text begin Financial assistance; regional allocation. new text end

new text begin (a) In addition to the assistance
under subdivision 4, paragraph (c), the commissioner must annually provide financial
assistance through regional allocation to replacement service municipalities. The amount
of financial assistance under this paragraph must equal at least 0.35 percent of the total state
revenues generated from the taxes imposed under chapter 297B for the current fiscal year.
new text end

new text begin (b) The commissioner must establish a process to regionally allocate financial assistance
under this subdivision. At a minimum, the commissioner must:
new text end

new text begin (1) adopt and implement a regional allocation policy that specifies funding priorities,
identifies decision-making procedures, and establishes criteria to determine the amount
allocated to a replacement service municipality; and
new text end

new text begin (2) ensure transparency and stakeholder input, which must include publishing on the
department's website the policy adopted under clause (1), a summary of the regional
allocation process, and financial information on the allocations.
new text end

new text begin (c) The regional allocation policy may specify eligibility requirements based on a
replacement service municipality's transit service operating reserves.
new text end

new text begin (d) The commissioner must provide financial assistance under this subdivision using
funds appropriated to the commissioner from the metropolitan area transit account in the
transit assistance fund.
new text end

new text begin Subd. 6. new text end

new text begin Other assistance. new text end

new text begin A city or town receiving assistance or levying a transit tax
under this section may also receive assistance from the Metropolitan Council under section
473.384. In applying for assistance under that section an applicant must describe the portion
of its available local transit funds or local transit taxes which are not obligated to subsidize
its replacement transit service and which the applicant proposes to use to subsidize additional
service. An applicant which has exhausted its available local transit funds or local transit
taxes may use any other local subsidy funds to complete the required local share.
new text end

new text begin Subd. 7. new text end

new text begin Local levy option. new text end

new text begin (a) A statutory or home rule charter city or town that is
eligible for assistance under this section may levy a tax for payment of obligations issued
by the municipality for capital expenditures for transit and other related activities, provided
that property taxes were pledged to satisfy the obligations, and provided that legislative
appropriations are insufficient to satisfy the obligations.
new text end

new text begin (b) This subdivision is consistent with the transit redesign plan. Eligible municipalities
opting to operate under this subdivision shall continue to meet the regional performance
standards established by the commissioner.
new text end

new text begin (c) Within the designated Americans with Disabilities Act area, Metro Mobility remains
the obligation of the state.
new text end

Sec. 4.

Minnesota Statutes 2020, section 297B.09, subdivision 1, is amended to read:


Subdivision 1.

Deposit of revenues.

(a) Money collected and received under this chapter
must be deposited as provided in this subdivision.

(b) 60 percent of the money collected and received must be deposited in the highway
user tax distribution fund, deleted text begin36deleted text endnew text begin 31.7new text end percent must be deposited in the metropolitan area transit
account under section 16A.88, and deleted text beginfourdeleted text endnew text begin 8.3new text end percent must be deposited in the greater
Minnesota transit account under section 16A.88.

(c) It is the intent of the legislature that the allocations under paragraph (b) remain
unchanged for fiscal year 2012 and all subsequent fiscal years.

Sec. 5. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2020, section 473.388, subdivisions 1, 2, 3, 4, 4a, 5, and 7, new text end new text begin are
repealed.
new text end

Sec. 6. new text beginEFFECTIVE DATE.
new text end

new text begin This act is effective July 1, 2021.
new text end

APPENDIX

Repealed Minnesota Statutes: 21-03978

473.388 REPLACEMENT SERVICE PROGRAM.

Subdivision 1.

Program established.

A replacement service program is established to continue the metropolitan transit service demonstration program established in Minnesota Statutes 1982, section 174.265, as provided in this section.

Subd. 2.

Replacement service; eligibility.

The council may provide assistance under the program to a statutory or home rule charter city or town or combination thereof, that:

(a) is located in the metropolitan transit taxing district;

(b) is not served by the council bus service or is served only with council bus routes which begin or end within the applying city or town or combination thereof; and

(c) has fewer than four scheduled runs of council bus service during off-peak hours as defined by the Metropolitan Council.

Eligible cities or towns or combinations thereof may apply on behalf of a transit operator with whom they propose to contract for service.

The council may not provide assistance under this section to a statutory or home rule charter city or town unless the city or town,

(i) was receiving assistance under Minnesota Statutes 1982, section 174.265, by July 1, 1984,

(ii) had submitted an application for assistance under that section by July 1, 1984, or

(iii) had submitted a letter of intent to apply for assistance under that section by July 1, 1984, and submits an application for assistance under this section by July 1, 1988. A statutory or home rule charter city or town has an additional 12-month extension if it notified the former regional transit board before July 1, 1988, that the city or town is in the process of completing a transportation evaluation study that includes an assessment of the local transit needs of the city or town.

Subd. 3.

Application for assistance.

An application for assistance under this section must:

(a) describe the existing service provided to the applicant by the council, including the estimated number of passengers carried and the routes, schedules, and fares;

(b) describe the transit service proposed for funding under the demonstration program, including the anticipated number of passengers and the routes, schedules, and fares; and

(c) indicate the total amount of available local transit funds, the portion of the available local transit funds proposed to be used to subsidize replacement services, and the amount of assistance requested for the replacement services.

Subd. 4.

Financial assistance; base allocation.

(a) The council must grant financial assistance if (1) the service of the statutory or home rule charter city, town, or combination, replaces the council's service to the statutory or home rule charter city, town, or combination, and (2) the service meets the needs of the recipient at least as efficiently and effectively as the council's service.

(b) The amount of assistance which the council must provide to a system under this section must not be less than the sum of (1) the amounts calculated under paragraph (c), and (2) the amount calculated under subdivision 4a.

(c) The financial assistance base allocation for each replacement service municipality is calculated as:

(1) an amount equal to 3.74 percent of the total state revenues generated from the taxes imposed under chapter 297B for the current fiscal year; times

(2) the ratio of:

(i) the transit operating assistance grants received under this subdivision by the municipality in calendar year 2001 or the tax revenues for transit services levied by the municipality for taxes payable in 2001, including that portion of the levy derived from the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of the municipality's aid under Minnesota Statutes 2002, section 273.1398, subdivision 2, attributable to the transit levy; to

(ii) the total transit operating assistance grants received under this subdivision in calendar year 2001 or the tax revenues for transit services levied by all replacement service municipalities under this section for taxes payable in 2001, including that portion of the levy derived from the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of homestead and agricultural credit aid under Minnesota Statutes 2002, section 273.1398, subdivision 2, attributable to nondebt transit levies; times

(3) the ratio of:

(i) the municipality's total taxable market value for taxes payable in 2006 divided by the municipality's total taxable market value for taxes payable in 2001; to

(ii) the total taxable market value of all property located in replacement service municipalities for taxes payable in 2006 divided by the total taxable market value of all property located in replacement service municipalities for taxes payable in 2001.

(d) The council must pay the amount to be provided to the recipient under this subdivision from the funds the council receives in the metropolitan area transit account under section 16A.88.

Subd. 4a.

Financial assistance; regional allocation.

(a) In addition to the assistance under subdivision 4, paragraph (c), for fiscal years 2019, 2020, and 2021, the council must annually provide financial assistance through regional allocation to replacement service municipalities. The amount of financial assistance under this paragraph must equal at least 0.35 percent of the total state revenues generated from the taxes imposed under chapter 297B for the current fiscal year.

(b) The council must establish a process to regionally allocate financial assistance under this subdivision. At a minimum, the council must:

(1) adopt and implement a regional allocation policy that specifies funding priorities, identifies decision-making procedures, and establishes criteria to determine the amount allocated to a replacement service municipality; and

(2) ensure transparency and stakeholder input, which must include publishing on the council's website the policy adopted under clause (1), a summary of the regional allocation process, and financial information on the allocations.

(c) The regional allocation policy may specify eligibility requirements based on a replacement service municipality's transit service operating reserves.

(d) The council must provide financial assistance under this subdivision using funds appropriated to the council from the metropolitan area transit account in the transit assistance fund.

Subd. 5.

Other assistance.

A city or town receiving assistance or levying a transit tax under this section may also receive assistance from the council under section 473.384. In applying for assistance under that section an applicant must describe the portion of its available local transit funds or local transit taxes which are not obligated to subsidize its replacement transit service and which the applicant proposes to use to subsidize additional service. An applicant which has exhausted its available local transit funds or local transit taxes may use any other local subsidy funds to complete the required local share.

Subd. 7.

Local levy option.

(a) A statutory or home rule charter city or town that is eligible for assistance under this section may levy a tax for payment of obligations issued by the municipality for capital expenditures for transit and other related activities, provided that property taxes were pledged to satisfy the obligations, and provided that legislative appropriations are insufficient to satisfy the obligations.

(b) This subdivision is consistent with the transit redesign plan. Eligible municipalities opting to operate under this subdivision shall continue to meet the regional performance standards established by the council.

(c) Within the designated Americans with Disabilities Act area, Metro Mobility remains the obligation of the state.