SF 2622

1st Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to transportation; changing formula for 
  1.3             distributing county state-aid highway funds; 
  1.4             increasing rate of excise tax on gasoline and special 
  1.5             fuel; allocating 25 percent of receipts from the motor 
  1.6             vehicle sales tax to the transit assistance fund; 
  1.7             making technical changes; amending Minnesota Statutes 
  1.8             1994, sections 162.02, subdivisions 7, 8, and by 
  1.9             adding a subdivision; 162.07, subdivisions 1, 5, and 
  1.10            6; 296.02, by adding subdivisions; and 297B.09, 
  1.11            subdivision 1; Minnesota Statutes 1995 Supplement, 
  1.12            sections 296.02, subdivision 1b; and 296.025, 
  1.13            subdivision 1b. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 1994, section 162.02, 
  1.16  subdivision 7, is amended to read: 
  1.17     Subd. 7.  [ESTABLISHMENT IN NEW LOCATION OR OVER 
  1.18  ESTABLISHED ROADS.] The county board of any county may establish 
  1.19  and locate any county state-aid highway on new location where 
  1.20  there is no existing road, or it may establish and locate the 
  1.21  highway upon or over any established road or street or a 
  1.22  specified portion thereof within its limits; provided, that.  
  1.23  Except as provided in subdivision 8a, no county state-aid 
  1.24  highway shall be established or located within the corporate 
  1.25  limits of any city without the approval of the governing body of 
  1.26  the city, except that when a county state-aid highway is 
  1.27  relocated the approval of the plans by the governing body shall 
  1.28  be deemed to be a transfer of the previous location of the 
  1.29  highway to the jurisdiction of the city.  The approval shall be 
  2.1   in the manner and form required by the commissioner.  
  2.2      Sec. 2.  Minnesota Statutes 1994, section 162.02, 
  2.3   subdivision 8, is amended to read: 
  2.4      Subd. 8.  [APPROVAL BY CITY.] Except as provided in 
  2.5   subdivision 8a, no portion of the county state-aid highway 
  2.6   system lying within the corporate limits of any city shall be 
  2.7   constructed, reconstructed, or improved nor the grade thereof 
  2.8   changed without the prior approval of the plans by the governing 
  2.9   body of such city and the approval shall be in the manner and 
  2.10  form required by the commissioner.  
  2.11     Sec. 3.  Minnesota Statutes 1994, section 162.02, is 
  2.12  amended by adding a subdivision to read: 
  2.13     Subd. 8a.  [DISPUTE RESOLUTION BOARD.] If a city has failed 
  2.14  to approve establishment, construction, reconstruction, or 
  2.15  improvement of a county state-aid highway within its corporate 
  2.16  limits under subdivision 7 or 8, the county board may, by 
  2.17  resolution, request the commissioner to appoint a dispute 
  2.18  resolution board consisting of one county commissioner, one 
  2.19  county engineer, one city council member or city mayor, one city 
  2.20  engineer, and one representative of the department of 
  2.21  transportation.  The board shall review the proposed change and 
  2.22  make a recommendation to the commissioner.  Notwithstanding any 
  2.23  other law, the commissioner may approve the establishment, 
  2.24  construction, reconstruction, or improvement of a county 
  2.25  state-aid highway recommended by the board. 
  2.26     Sec. 4.  Minnesota Statutes 1994, section 162.07, 
  2.27  subdivision 1, is amended to read: 
  2.28     Subdivision 1.  [FORMULA.] After deducting for 
  2.29  administrative costs and for the disaster account and research 
  2.30  account and state park roads as heretofore provided, the 
  2.31  remainder of the total sum provided for in section 162.06, 
  2.32  subdivision 1, shall be identified as the apportionment sum and 
  2.33  shall be apportioned by the commissioner to the several counties 
  2.34  on the basis of the needs of the counties as determined in 
  2.35  accordance with the following formula: 
  2.36     (1) An amount equal to ten percent of the apportionment sum 
  3.1   shall be apportioned equally among the 87 counties.  
  3.2      (2) An amount equal to ten percent of the apportionment sum 
  3.3   shall be apportioned among the several counties so that each 
  3.4   county shall receive of such amount the percentage that its 
  3.5   motor vehicle registration for the calendar year preceding the 
  3.6   one last past, determined by residence of registrants, bears to 
  3.7   the total statewide motor vehicle registration.  
  3.8      (3) An amount equal to 30 percent of the apportionment sum 
  3.9   shall be apportioned among the several counties so that each 
  3.10  county shall receive of such amount the percentage that its 
  3.11  total lane miles of approved county state-aid highways bears to 
  3.12  the total lane miles of approved statewide county state-aid 
  3.13  highways.  
  3.14     (4) An amount equal to 50 percent of the apportionment sum 
  3.15  shall be apportioned among the several counties so that each 
  3.16  county shall receive of such amount the percentage that its 
  3.17  money needs bears to the sum of the money needs of all of the 
  3.18  individual counties; provided, that the percentage of such 
  3.19  amount that each county is to receive shall be adjusted so that 
  3.20  each county shall receive in 1958 a total apportionment at least 
  3.21  ten percent greater than its total 1956 apportionments from the 
  3.22  state road and bridge fund; and provided further that those 
  3.23  counties whose money needs are thus adjusted shall never receive 
  3.24  a percentage of the apportionment sum less than the percentage 
  3.25  that such county received in 1958.  
  3.26     Sec. 5.  Minnesota Statutes 1994, section 162.07, 
  3.27  subdivision 5, is amended to read: 
  3.28     Subd. 5.  [SCREENING BOARD.] On or before September 1 of 
  3.29  each year, the county engineer of each county shall forward to 
  3.30  the commissioner, on forms prepared by the commissioner, all 
  3.31  information relating to the mileage, in lane miles, of the 
  3.32  county state-aid highway system in the county, and the money 
  3.33  needs of the county that the commissioner deems necessary in 
  3.34  order to apportion the county state-aid highway fund in 
  3.35  accordance with the formula heretofore set forth in subdivision 
  3.36  1.  Upon receipt of the information, the commissioner shall 
  4.1   appoint a board consisting of nine 12 county engineers.  The 
  4.2   board shall be so selected that each county engineer appointed 
  4.3   shall be from a different state highway construction district 
  4.4   Five county engineers must be appointed from the metropolitan 
  4.5   highway construction district and seven county engineers must be 
  4.6   appointed from the nonmetropolitan highway construction 
  4.7   districts.  Each of the seven county engineers appointed from 
  4.8   nonmetropolitan districts must be from a different state highway 
  4.9   construction district. 
  4.10     No county engineer shall be appointed so as to serve 
  4.11  consecutively for more than two four years.  The board shall 
  4.12  investigate and review the information submitted by each county 
  4.13  and shall on or before the first day of November of each year 
  4.14  submit its findings and recommendations in writing as to each 
  4.15  county's lane mileage and money needs to the commissioner on a 
  4.16  form prepared by the commissioner.  Final determination of 
  4.17  the lane mileage of each system and the money needs of each 
  4.18  county shall be made by the commissioner.  
  4.19     Sec. 6.  Minnesota Statutes 1994, section 162.07, 
  4.20  subdivision 6, is amended to read: 
  4.21     Subd. 6.  [ESTIMATES TO BE MADE IF INFORMATION NOT 
  4.22  PROVIDED.] In the event that any county shall fail to submit the 
  4.23  information provided for herein, the commissioner shall estimate 
  4.24  the lane mileage and the money needs of the county.  The 
  4.25  estimate shall be used in determining the apportionment 
  4.26  formula.  The commissioner may withhold payment of the amount 
  4.27  apportioned to the county until the information is submitted.  
  4.28     Sec. 7.  Minnesota Statutes 1995 Supplement, section 
  4.29  296.02, subdivision 1b, is amended to read: 
  4.30     Subd. 1b.  [RATES IMPOSED.] The gasoline excise tax is 
  4.31  imposed at the following rates: 
  4.32     (a) From June 1, 1996, to December 31, 1996: 
  4.33     (1) E85 is taxed at the rate of 14.2 16.3 cents per gallon; 
  4.34     (2) M85 is taxed at the rate of 11.4 13.1 cents per gallon; 
  4.35  and 
  4.36     (3) all other gasoline is taxed at the rate of 20 23 cents 
  5.1   per gallon.  
  5.2      (b) On and after January 1, 1997: 
  5.3      (1) E85 is taxed at the rate of 17.7 cents per gallon; 
  5.4      (2) M85 is taxed at the rate of 14.3 cents per gallon; and 
  5.5      (3) all other gasoline is taxed at the rate of 25 cents per 
  5.6   gallon. 
  5.7      Sec. 8.  Minnesota Statutes 1994, section 296.02, is 
  5.8   amended by adding a subdivision to read: 
  5.9      Subd. 1c.  [ANNUAL GASOLINE TAX RATE ADJUSTMENT.] (a) 
  5.10  Beginning in 1997 and annually thereafter, before April 1 of 
  5.11  each year, the commissioner of revenue shall adjust the rate of 
  5.12  the gasoline excise tax unless the rate is calculated under 
  5.13  subdivision 1d.  The new rate per gallon must be calculated by 
  5.14  multiplying the rate in effect at the time of the calculation by 
  5.15  an amount obtained under paragraph (b).  The new rate must be 
  5.16  rounded to the nearest 0.1 cent and is effective on April 1 of 
  5.17  each year. 
  5.18     (b) Divide the annual average United States Consumer Price 
  5.19  Index for all urban consumers, United States city average, as 
  5.20  determined by the United States Department of Labor for the 
  5.21  previous year by that annual average for the year before the 
  5.22  previous year. 
  5.23     Sec. 9.  Minnesota Statutes 1994, section 296.02, is 
  5.24  amended by adding a subdivision to read: 
  5.25     Subd. 1d.  [GASOLINE TAX RATE REDUCTION.] On and after the 
  5.26  effective date of any law which reduces the percentage of motor 
  5.27  vehicle excise tax proceeds specified to be transferred to the 
  5.28  transit assistance fund under section 297B.09, subdivision 1, 
  5.29  the commissioner of revenue shall adjust any increase in the 
  5.30  gasoline excise tax rate or special fuel excise tax rate over 
  5.31  the rate in effect on January 1, 1996, by a corresponding 
  5.32  percentage reduction.  A rate established under this subdivision 
  5.33  shall remain in effect with no adjustment under subdivision 1c. 
  5.34     Sec. 10.  Minnesota Statutes 1995 Supplement, section 
  5.35  296.025, subdivision 1b, is amended to read: 
  5.36     Subd. 1b.  [TAX RATES.] The special fuel excise tax is 
  6.1   imposed at the following rates: 
  6.2      (a) From June 1, 1996, to December 31, 1996: 
  6.3      (1) Liquefied petroleum gas or propane is taxed at the rate 
  6.4   of 15 17.3 cents per gallon. 
  6.5      (2) Liquefied natural gas is taxed at the rate of 12 13.8 
  6.6   cents per gallon. 
  6.7      (3) Compressed natural gas is taxed at the rate 
  6.8   of $1.739 $2 per thousand cubic feet; or 20 23 cents per 
  6.9   gasoline equivalent, as defined by the National Conference on 
  6.10  Weights and Measures, which is 5.66 pounds of natural gas. 
  6.11     (4) All other special fuel is taxed at the same rate as the 
  6.12  gasoline excise tax. 
  6.13     (b) On and after January 1, 1997: 
  6.14     (1) Liquefied petroleum gas or propane is taxed at the rate 
  6.15  of 18.7 cents per gallon. 
  6.16     (2) Liquefied natural gas is taxed at the rate of 15 cents 
  6.17  per gallon. 
  6.18     (3) Compressed natural gas is taxed at the rate of $2.174 
  6.19  per thousand cubic feet; or 25 cents per gasoline equivalent, as 
  6.20  defined by the National Conference on Weights and Measures, 
  6.21  which is 5.66 pounds of natural gas. 
  6.22     (4) All other special fuel is taxed at the same rate as the 
  6.23  gasoline excise tax. 
  6.24     After March 31, 1997, the special fuel excise tax rate 
  6.25  shall be determined under section 296.02, subdivision 1c. 
  6.26     Sec. 11.  Minnesota Statutes 1994, section 297B.09, 
  6.27  subdivision 1, is amended to read: 
  6.28     Subdivision 1.  [GENERAL FUND SHARE ALLOCATION OF 
  6.29  RECEIPTS.] (a) Money collected and received under this chapter 
  6.30  must be deposited in the state treasury and credited to the 
  6.31  general fund.  The amounts collected and received shall be 
  6.32  credited as provided in this subdivision, and transferred from 
  6.33  the general fund on July 15 and February 15 of each fiscal 
  6.34  year.  The commissioner of finance must make each transfer based 
  6.35  upon the actual receipts of the preceding six calendar months 
  6.36  and include the interest earned during that six-month period.  
  7.1   The commissioner of finance may establish a quarterly or other 
  7.2   schedule providing for more frequent payments to the transit 
  7.3   assistance fund if the commissioner determines it is necessary 
  7.4   or desirable to provide for the cash flow needs of the 
  7.5   recipients of money from the transit assistance fund.  
  7.6      (b) Twenty-five percent of the money collected and received 
  7.7   under this chapter after June 30, 1990, and before July 1, 1991, 
  7.8   must be transferred to the highway user tax distribution fund 
  7.9   and the transit assistance fund for apportionment as follows:  
  7.10  75 percent must be transferred to the highway user tax 
  7.11  distribution fund for apportionment in the same manner and for 
  7.12  the same purposes as other money in that fund, and the remaining 
  7.13  25 percent of the money must be transferred to the transit 
  7.14  assistance fund to be appropriated to the commissioner of 
  7.15  transportation for transit assistance within the state and to 
  7.16  the metropolitan council.  
  7.17     (c) The distributions under this subdivision to the highway 
  7.18  user tax distribution fund until June 30, 1991, and to the trunk 
  7.19  highway fund thereafter, must be reduced by the amount necessary 
  7.20  to fund the appropriation under section 41A.09, subdivision 1.  
  7.21  For the fiscal years ending June 30, 1988, and June 30, 1989, 
  7.22  the commissioner of finance, before making the transfers 
  7.23  required on July 15 and January 15 of each year, shall estimate 
  7.24  the amount required to fund the appropriation under section 
  7.25  41A.09, subdivision 1, for the six-month period for which the 
  7.26  transfer is being made.  The commissioner shall then reduce the 
  7.27  amount transferred to the highway user tax distribution fund by 
  7.28  the amount of that estimate.  The commissioner shall reduce the 
  7.29  estimate for any six-month period by the amount by which the 
  7.30  estimate for the previous six-month period exceeded the amount 
  7.31  needed to fund the appropriation under section 41A.09, 
  7.32  subdivision 1, for that previous six-month period.  If at any 
  7.33  time during a six-month period in those fiscal years the amount 
  7.34  of reduction in the transfer to the highway user tax 
  7.35  distribution fund is insufficient to fund the appropriation 
  7.36  under section 41A.09, subdivision 1, for that period, the 
  8.1   commissioner shall transfer to the general fund from the highway 
  8.2   user tax distribution fund an additional amount sufficient to 
  8.3   fund the appropriation for that period, but the additional 
  8.4   amount so transferred to the general fund in a six-month period 
  8.5   may not exceed the amount transferred to the highway user tax 
  8.6   distribution fund for that six-month period.  Receipts from the 
  8.7   tax imposed under this chapter must be deposited in the state 
  8.8   treasury and credited as follows: 
  8.9      (1) ... percent to the transit assistance fund established 
  8.10  under section 174.32; and 
  8.11     (2) the remainder to the general fund. 
  8.12     Sec. 12.  [EFFECTIVE DATE.] 
  8.13     Sections 7 and 10 are effective June 1, 1996, and apply to 
  8.14  all gasoline and special fuels in distributor storage on that 
  8.15  date.  Sections 1 to 6, 8, 9, and 11 are effective on July 1, 
  8.16  1996.