SF 3523

as introduced - 94th Legislature (2025 - 2026) Posted on 05/17/2025 12:05pm

A bill for an act
relating to transportation; modifying allocation of revenue from the regional
transportation sales tax for student transit and replacement services; amending
Minnesota Statutes 2024, sections 297A.9915, subdivision 4; 473.4465, subdivision
2, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2024, section 297A.9915, subdivision 4, is amended to
read:

Subd. 4.

Deposit.

Proceeds of the regional transportation sales tax must be allocated as
follows:

(1) deleted text begin 83 deleted text end new text begin 75.882 new text end percent to the Metropolitan Council for the purposes specified under
section 473.4465 new text begin , subdivision 2 new text end ; deleted text begin and
deleted text end

new text begin (2) 5.281 percent to the Metropolitan Council for the purposes specified under section
473.4465, subdivision 2a;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end 17 percent to metropolitan counties, as defined in section 174.49, subdivision 1,
in the manner provided under section 174.49, subdivision 5 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (4) 1.837 percent to the Board of Regents of the University of Minnesota for student
transit service purposes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 2.

Minnesota Statutes 2024, section 473.4465, subdivision 2, is amended to read:

Subd. 2.

Use of funds; Metropolitan Council.

(a) Sales tax revenue new text begin allocated under
section 297A.9915, subdivision 4, clause (1), new text end is available as follows:

(1) five percent for active transportation, as determined by the Transportation Advisory
Board under subdivision 3; and

(2) 95 percent for transit system purposes under sections 473.371 to 473.452, including
but not limited to operations, maintenance, and capital projects.

(b) The council must expend a portion of sales tax revenue in each of the following
categories:

(1) improvements to regular route bus service levels;

(2) improvements related to transit safety, including additional transit officials, as defined
under section 473.4075;

(3) maintenance and improvements to bus accessibility at transit stops and transit centers;

(4) transit shelter replacement and improvements under section 473.41;

(5) planning and project development for expansion of arterial bus rapid transit lines;

(6) operations and capital maintenance of arterial bus rapid transit;

(7) planning and project development for expansion of highway bus rapid transit and
bus guideway lines;

(8) operations and capital maintenance of highway bus rapid transit and bus guideways;

(9) zero-emission bus procurement and associated costs in conformance with the
zero-emission and electric transit vehicle transition plan under section 473.3927;

(10) demand response microtransit service provided by the council;

(11) financial assistance to replacement service providers under section 473.388, to
provide for service, vehicle purchases, and capital investments related to demand response
microtransit service;

(12) financial assistance to political subdivisions and tax-exempt organizations under
section 501(c)(3) of the Internal Revenue Code for active transportation; and

(13) wage adjustments for Metro Transit hourly operations employees.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 3.

Minnesota Statutes 2024, section 473.4465, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Use of funds; Metropolitan Council; replacement service. new text end

new text begin (a) The council
must use the sales tax revenue allocated under section 297A.9915, subdivision 4, clause
(2), for financial assistance to the Minnesota Valley Transit Authority.
new text end

new text begin (b) The amount used for financial assistance under this subdivision is in addition to: (1)
the regional allocation amount to the Minnesota Valley Transit Authority under section
473.388; and (2) any financial assistance to the Minnesota Valley Transit Authority under
subdivision 2, paragraph (b).
new text end

new text begin (c) The council must not retain any portion of the funds allocated under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end