SF 3567

as introduced - 90th Legislature (2017 - 2018) Posted on 03/20/2018 09:10am

A bill for an act
relating to transportation; creating a metropolitan congestion management
component of the corridors of commerce program; reforming the metropolitan
fiscal disparities program; providing for payments to the trunk highway fund;
amending Minnesota Statutes 2016, sections 161.088, subdivision 1, by adding
subdivisions; 167.60; 473F.02, subdivisions 2, 4; 473F.06; 473F.07, subdivisions
1, 4, 5, by adding subdivisions; 473F.08, subdivision 2, by adding a subdivision;
477A.011, subdivision 20; Minnesota Statutes 2017 Supplement, sections 161.088,
subdivision 5; 477A.0124, subdivision 2.

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

ARTICLE 1

METROPOLITAN CONGESTION MANAGEMENT

Section 1.

Minnesota Statutes 2016, section 161.088, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section, the following terms have the
meanings given:

(1) "beyond the project limits" means any point that is located:

(i) outside of the project limits;

(ii) along the same trunk highway; and

(iii) within the same region of the state;

(2) "city" means a statutory or home rule charter city;

(3) new text begin "congestion management program component" means the metropolitan congestion
management component of the corridors of commerce program under subdivision 5a;
new text end

new text begin (4) new text end "program" means the corridors of commerce program established in this section; and

deleted text begin (4) deleted text end new text begin (5) new text end "project limits" means the estimated construction limits of a project for trunk
highway construction, reconstruction, or maintenance, that is a candidate for selection under
the corridors of commerce program.

Sec. 2.

Minnesota Statutes 2016, section 161.088, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Corridors of commerce account; appropriation. new text end

new text begin (a) A corridors of commerce
account is established in the trunk highway fund. The account consists of funds provided
by law and any other money donated, allotted, transferred, or otherwise provided to the
account.
new text end

new text begin (b) Money in the account is annually appropriated to the commissioner and may be
expended only for the congestion management program component, including but not limited
to transfers as necessary for trunk highway bonds issued under subdivision 5c.
new text end

Sec. 3.

Minnesota Statutes 2017 Supplement, section 161.088, subdivision 5, is amended
to read:

Subd. 5.

Project selection process; criteria.

(a) The commissioner must establish a
process to identify, evaluate, and select projects under the program. The process must be
consistent with the requirements of this subdivision and must not include any additional
evaluation criteria new text begin , except as provided in subdivision 5a new text end .

(b) As part of the project selection process, the commissioner must annually accept
recommendations on candidate projects from area transportation partnerships and other
interested stakeholders in each Department of Transportation district. The commissioner
must determine the eligibility for each candidate project identified under this paragraph.
For each eligible project, the commissioner must classify and evaluate the project for the
program, using all of the criteria established under paragraph (c).

(c) Projects must be evaluated using all of the following criteria:

(1) a return on investment measure that provides for comparison across eligible projects;

(2) measurable impacts on commerce and economic competitiveness;

(3) efficiency in the movement of freight, including but not limited to:

(i) measures of annual average daily traffic and commercial vehicle miles traveled, which
may include data near the project location on that trunk highway or on connecting trunk
and local highways; and

(ii) measures of congestion or travel time reliability, which may be within or near the
project limits, or both;

(4) improvements to traffic safety;

(5) connections to regional trade centers, local highway systems, and other transportation
modes;

(6) the extent to which the project addresses multiple transportation system policy
objectives and principles;

(7) support and consensus for the project among members of the surrounding community;
and

(8) regional balance throughout the state new text begin , provided that the commissioner must not take
into account appropriations or other funds made available specifically under subdivision
5a new text end .

(d) The list of all projects evaluated must be made public and must include the score of
each project.

(e) As part of the project selection process, the commissioner may divide funding to be
separately available among projects within each classification under subdivision 3, and may
apply separate or modified criteria among those projects falling within each classification.

Sec. 4.

Minnesota Statutes 2016, section 161.088, is amended by adding a subdivision to
read:

new text begin Subd. 5a. new text end

new text begin Metropolitan congestion management; requirements. new text end

new text begin (a) The commissioner
must implement a metropolitan congestion management component of the corridors of
commerce program using appropriations or other funds made available specifically under
this subdivision to reduce congestion and improve mobility in the metropolitan area. The
commissioner may implement the congestion management program component with any
funds used for the corridors of commerce program.
new text end

new text begin (b) All requirements of the corridors of commerce program under this section apply to
the congestion management program component, except that:
new text end

new text begin (1) the project must be located wholly or primarily within the Department of
Transportation metropolitan district;
new text end

new text begin (2) notwithstanding subdivision 4, paragraph (a), clause (3), the project must meet the
capacity development classification under subdivision 3, clause (1);
new text end

new text begin (3) no appropriations or other funds made available specifically under this subdivision
may be expended for transit facilities located in trunk highway right-of-way or for lanes in
which user fees are imposed as provided under section 160.93;
new text end

new text begin (4) an additional project evaluation criterion is the availability and commitment of
funding or in-kind assistance for the project from nonpublic sources;
new text end

new text begin (5) the evaluation criterion under subdivision 5, paragraph (c), clause (3), is modified
to be "efficiency in the movement of passenger vehicles," but may include movement of
all motor vehicles;
new text end

new text begin (6) the evaluation criteria under subdivision 5, paragraph (c), clauses (2) and (8), are
not applicable;
new text end

new text begin (7) primary evaluation criteria are as identified in clause (5) and subdivision 5, paragraph
(c), clause (1); and
new text end

new text begin (8) the provisions of subdivision 5, paragraph (e), are not applicable.
new text end

new text begin (c) Appropriations or other funds made available specifically under this subdivision
must not result in a reduction in funds for the Department of Transportation metropolitan
district from (1) any other funding through the corridors of commerce program, or (2) the
department's distribution to the districts.
new text end

Sec. 5.

Minnesota Statutes 2016, section 161.088, is amended by adding a subdivision to
read:

new text begin Subd. 5b. new text end

new text begin Metropolitan congestion management; local advisory committee. new text end

new text begin As part
of implementation of the congestion management component of the corridors of commerce
program, the commissioner must convene a local advisory committee for project selection.
The advisory committee must be composed of representatives from counties, statutory and
home rule charter cities, and towns throughout the metropolitan district, with balanced
representation based on geography and population. The commissioner must establish a
process to consider input from the advisory committee in selecting projects.
new text end

Sec. 6.

Minnesota Statutes 2016, section 161.088, is amended by adding a subdivision to
read:

new text begin Subd. 5c. new text end

new text begin Metropolitan congestion management; trunk highway bonds authorization;
appropriation. new text end

new text begin (a) The commissioner of transportation may request that the commissioner
of management and budget sell and issue trunk highway bonds for the congestion
management component of the corridors of commerce program. The commissioner of
management and budget shall schedule the sale of the bonds so that in each biennium, no
more than an amount equal to 90 percent of the money in the corridors of commerce account
in the trunk highway fund will need to be transferred from that account to the trunk highway
bond account to pay principal and interest due and to become due on all outstanding trunk
highway bonds issued for the congestion management program component. Before each
sale of trunk highway bonds for the congestion management program component, the
commissioner of management and budget shall calculate the amount of debt service payments
needed on bonds previously issued and shall estimate the amount of debt service payments
that will be needed on the bonds scheduled to be sold. The commissioner of management
and budget shall adjust the amount of bonds scheduled to be sold so as to remain within the
limit set by this section. The amount needed to make the debt service payments is
appropriated from the trunk highway fund as provided in section 167.51.
new text end

new text begin (b) Upon request of the commissioner of transportation, the commissioner of management
and budget shall sell and issue bonds of the state in an amount specified by the commissioner
of transportation, subject to paragraph (a), in the manner, upon the terms, and with the effect
prescribed by sections 167.50 to 167.52, and by the Minnesota Constitution, article XIV,
section 11.
new text end

new text begin (c) Proceeds of the bonds issued under paragraph (b) are appropriated to the commissioner
of transportation for the congestion management program component.
new text end

Sec. 7.

Minnesota Statutes 2016, section 167.60, is amended to read:

167.60 DEBT-FINANCING MANAGEMENT POLICY.

(a) By July 1, 2010, the commissioner shall develop a debt-financing management policy
for trunk highway bonds, federal advanced construction funds, and other forms of highway
financing based on debt or future repayment. The policy must be used by the department
to guide decision making related to debt financing. The commissioner may update the policy
as necessary. In developing and updating the policy, the commissioner shall consult with
the commissioner of management and budget and the chairs and ranking minority members
of the senate and house of representatives committees with jurisdiction over transportation
finance.

(b) The debt-financing management policy must address relevant financial issues,
including, but not limited to:

(1) limits on cumulative amounts of debt for the trunk highway system from all state
and federal sources new text begin , which must include separate limits for debt authorized under section
161.088, subdivision 5c new text end ;

(2) eligibility of projects for debt-financing funds;

(3) allocation and use of funds;

(4) terms of debt service and methods of repayment;

(5) management of trunk highway fund balance impacts; and

(6) mitigation of risks from different forms of debt financing.

(c) Upon creation or formal revision of the debt-financing management policy, the
commissioner shall distribute electronic copies to the members of the senate and house of
representatives committees with jurisdiction over transportation finance, and as required
for reports to the legislature under section 3.195, subdivision 1.

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 7 are effective July 1, 2018.
new text end

ARTICLE 2

METROPOLITAN FISCAL DISPARITIES REFORM

Section 1.

Minnesota Statutes 2016, section 473F.02, subdivision 2, is amended to read:

Subd. 2.

Area.

"Area" means the territory included within the boundaries of Anoka,
Carver, Dakota excluding the city of Northfield, Hennepin, Ramsey, Scott excluding the
city of New Prague, and Washington Counties deleted text begin , excluding lands constituting a major or an
intermediate airport as defined under section 473.625 deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal disparities contributions and
distributions for taxes payable in 2019 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2016, section 473F.02, subdivision 4, is amended to read:

Subd. 4.

Residential property.

"Residential property" means the following categories
of property, as defined in section 273.13, excluding that portion of such property exempt
from taxation pursuant to section 272.02:

deleted text begin (a) deleted text end class 1 deleted text begin , deleted text end new text begin ; new text end 1b deleted text begin , deleted text end new text begin ; new text end 2a, new text begin including only the house, garage, and one acre; new text end 4a deleted text begin , deleted text end new text begin ; new text end 4b deleted text begin , 4c, deleted text end new text begin ; 4bb; new text end
and 4d property deleted text begin except resorts and property classified under section 273.13, subdivision
25, paragraph (d), clause (3); and deleted text end new text begin .
new text end

deleted text begin (b) that portion of class 3a, 3b, and 5 property used exclusively for residential occupancy.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal disparities contributions and
distributions for taxes payable in 2019 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2016, section 473F.06, is amended to read:

473F.06 deleted text begin INCREASE IN deleted text end new text begin ADJUSTMENTS TO new text end NET TAX CAPACITY.

On or before July 15 of each year, the auditor of each county in the area shall determine
the deleted text begin amount, if any, by which the deleted text end net tax capacity deleted text begin determined deleted text end in the preceding year under
section 473F.05, of commercial-industrial property subject to taxation within each
municipality in the auditor's county deleted text begin exceeds the net tax capacity in 1971 of
commercial-industrial property subject to taxation within that municipality deleted text end . If a municipality
is located in two or more counties within the area, the auditors of those counties shall certify
the data required by section 473F.05 to the county auditor who is responsible under other
provisions of law for allocating the levies of that municipality between or among the affected
counties. That county auditor shall determine the amount deleted text begin of the net excess, if any, deleted text end for the
municipality under this section, and certify that amount under section 473F.07.
deleted text begin Notwithstanding any other provision of sections 473F.01 to 473F.13 to the contrary, in the
case of a municipality which is designated on July 24, 1971, as a redevelopment area under
section 401(a)(4) of the Public Works and Economic Development Act of 1965, Public Law
89-136, the increase in its net tax capacity of commercial-industrial property for purposes
of this section shall be determined in each year by using as a base the net tax capacity of
commercial-industrial property in that municipality in the 1989 assessment year, rather than
the net tax capacity of such property in 1971. deleted text end The deleted text begin increase in deleted text end total net tax capacity determined
by this section shall be reduced by the amount of any decreases in net tax capacity of
commercial-industrial property resulting from any court decisions, court related stipulation
agreements, or abatements for a prior year, and only in the amount of such decreases made
during the 12-month period ending on May 1 of the current assessment year, where such
decreases, if originally reflected in the determination of a prior year's net tax capacity under
section 473F.05, would have resulted in a smaller contribution from the municipality in that
year. An adjustment for such decreases shall be made only if the municipality made a
contribution in a prior year based on the higher net tax capacity of the commercial-industrial
property.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal disparities contributions and
distributions for taxes payable in 2019 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2016, section 473F.07, subdivision 1, is amended to read:

Subdivision 1.

Areawide net tax capacity.

new text begin (a) new text end Each county auditor shall certify the
determinations under sections 473F.05 and 473F.06 to the administrative auditor on or
before August 1 of each year.

new text begin (b) new text end The administrative auditor shall determine deleted text begin an amount deleted text end new text begin each municipality's contribution
net tax capacity new text end equal to deleted text begin 40 deleted text end new text begin 37 new text end percent of the new text begin amount determined under paragraph (a). The
new text end sum of the amounts deleted text begin certified under section 473F.06. The resulting amount deleted text end new text begin determined under
this paragraph new text end shall be known as the "areawide net tax capacity for ........(year)."

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal disparities contributions and
distributions for taxes payable in 2019 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2016, section 473F.07, subdivision 4, is amended to read:

Subd. 4.

new text begin Initial new text end distribution net tax capacity.

The administrative auditor shall determine
the proportion which the index of each municipality bears to the sum of the indices of all
municipalities and shall then multiply this proportion in the case of each municipality, by
the areawide net tax capacity. new text begin This amount shall be known as the municipality's initial
distribution net tax capacity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal disparities contributions and
distributions for taxes payable in 2019 and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2016, section 473F.07, is amended by adding a subdivision to
read:

new text begin Subd. 4a. new text end

new text begin Metropolitan congestion management pool. new text end

new text begin The administrative auditor must
dedicate $24,000,000 of the net tax capacity in the areawide pool to the metropolitan
congestion management pool. The administrative auditor must proportionately reduce each
municipality's initial distribution net tax capacity by the percentage necessary to
accommodate the dedication under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal disparities contributions and
distributions for taxes payable in 2019 and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2016, section 473F.07, is amended by adding a subdivision to
read:

new text begin Subd. 4b. new text end

new text begin Limitation on distribution. new text end

new text begin (a) A municipality whose residential property
market value per capita is greater than the average residential property market value per
capita in the area, but less than 105 percent of the average residential property market value
per capita in the area, must not receive a distribution under subdivision 4a that exceeds 120
percent of its contribution net tax capacity.
new text end

new text begin (b) A municipality whose residential property market value per capita is greater than
105 percent but less than 110 percent of the average residential property market value per
capita in the area must not receive a distribution under subdivision 4a that exceeds 110
percent of its contribution net tax capacity.
new text end

new text begin (c) A municipality whose residential property market value per capita is greater than
110 percent of the average residential property market value per capita in the area must not
receive a distribution under subdivision 4a that exceeds its contribution net tax capacity.
new text end

new text begin (d) Any distribution reductions under this subdivision must be added to the metropolitan
congestion management pool under subdivision 4a.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal disparities contributions and
distributions for taxes payable in 2019 and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2016, section 473F.07, subdivision 5, is amended to read:

Subd. 5.

Certification to county auditor.

The result of the deleted text begin procedure deleted text end new text begin procedures new text end
prescribed deleted text begin by subdivision deleted text end new text begin in subdivisions new text end 4 new text begin , 4a, and 4b new text end shall be known as the "areawide net
tax capacity for ........(year) attributable to ..................(municipality)." The administrative
auditor shall certify such product to the auditor of the county in which the municipality is
located on or before August 15.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal disparities contributions and
distributions for taxes payable in 2019 and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2016, section 473F.08, subdivision 2, is amended to read:

Subd. 2.

Computation of net tax capacity.

The net tax capacity of a governmental unit
is its net tax capacity, as determined in accordance with other provisions of law including
section 469.177, subdivision 3, subject to the following adjustments:

(a) There shall be subtracted from its net tax capacity, in each municipality in which the
governmental unit exercises ad valorem taxing jurisdiction, an amount which bears the same
proportion to deleted text begin 40 percent of the amount certified in that year under sections 473F.06 and
473F.07 for the municipality deleted text end new text begin the municipality's contribution net tax capacity under section
473F.07, subdivision 1, new text end as the total preceding year's net tax capacity of commercial-industrial
property which is subject to the taxing jurisdiction of the governmental unit within the
municipality, determined without regard to section 469.177, subdivision 3, bears to the total
preceding year's net tax capacity of commercial-industrial property within the municipality,
determined without regard to section 469.177, subdivision 3;

(b) There shall be added to its net tax capacity, in each municipality in which the
governmental unit exercises ad valorem taxing jurisdiction, an amount which bears the same
proportion to the deleted text begin areawide net tax capacity for the year attributable to that municipality deleted text end
new text begin municipality's distribution net tax capacity under section 473F.07, subdivision 5, new text end as the total
preceding year's net tax capacity of residential property which is subject to the taxing
jurisdiction of the governmental unit within the municipality bears to the total preceding
year's net tax capacity of residential property of the municipality.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal disparities contributions and
distributions for taxes payable in 2019 and thereafter.
new text end

Sec. 10.

Minnesota Statutes 2016, section 473F.08, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Transportation fund. new text end

new text begin The administrative auditor must calculate the amount
of the metropolitan congestion management pool determined under section 473F.07,
subdivisions 4a and 4b, multiplied by the areawide tax rate determined under subdivision
5, and pay that amount to the commissioner of transportation for deposit to the corridors of
commerce account in the trunk highway fund in two equal installments on July 1 and
December 1 of each year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2019 and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2016, section 477A.011, subdivision 20, is amended to read:

Subd. 20.

City net tax capacity.

"City net tax capacity" means the city's adjusted net
tax capacity under section 273.1325 deleted text begin . deleted text end new text begin , provided that in the case of a city located in the area
described in section 473F.02, subdivision 2, the city's adjusted net tax capacity must utilize
the city's initial distribution net tax capacity under section 473F.07, subdivision 4, rather
than the city's distribution net tax capacity under section 473F.07, subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2020 and thereafter.
new text end

Sec. 12.

Minnesota Statutes 2017 Supplement, section 477A.0124, subdivision 2, is
amended to read:

Subd. 2.

Definitions.

(a) For the purposes of this section, the following terms have the
meanings given them.

(b) "County program aid" means the sum of "county need aid," "county tax base
equalization aid," and "county transition aid."

(c) "Age-adjusted population" means a county's population multiplied by the county age
index.

(d) "County age index" means the percentage of the population age 65 and over within
the county divided by the percentage of the population age 65 and over within the state,
except that the age index for any county may not be greater than 1.8 nor less than 0.8.

(e) "Population age 65 and over" means the population age 65 and over established as
of July 15 in an aid calculation year by the most recent federal census, by a special census
conducted under contract with the United States Bureau of the Census, by a population
estimate made by the Metropolitan Council, or by a population estimate of the state
demographer made pursuant to section 4A.02, whichever is the most recent as to the stated
date of the count or estimate for the preceding calendar year and which has been certified
to the commissioner of revenue on or before July 15 of the aid calculation year. A revision
to an estimate or count is effective for these purposes only if certified to the commissioner
on or before July 15 of the aid calculation year. Clerical errors in the certification or use of
estimates and counts established as of July 15 in the aid calculation year are subject to
correction within the time periods allowed under section 477A.014.

(f) "Part I crimes" means the three-year average annual number of Part I crimes reported
for each county by the Department of Public Safety for the most recent years available. By
July 1 of each year, the commissioner of public safety shall certify to the commissioner of
revenue the number of Part I crimes reported for each county for the three most recent
calendar years available.

(g) "Households receiving food stamps" means the average monthly number of
households receiving food stamps for the three most recent years for which data is available.
By July 1 of each year, the commissioner of human services must certify to the commissioner
of revenue the average monthly number of households in the state and in each county that
receive food stamps, for the three most recent calendar years available.

(h) "County net tax capacity" means the county's adjusted net tax capacity under section
273.1325 deleted text begin . deleted text end new text begin , provided that in the case of a county containing one or more municipalities
located in the area described in section 473F.02, subdivision 2, the county's adjusted net
tax capacity must utilize the initial distribution net tax capacities of municipalities in the
county under section 473F.07, subdivision 4, rather than the distribution net tax capacities
of municipalities in the county under section 473F.07, subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2020 and thereafter.
new text end