SF 625

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 02/12/2021 08:52am

A bill for an act
relating to transportation; creating the township road improvement grant program;
modifying allocation of state general sales tax revenue related to motor vehicle
repair and replacement parts; dedicating sales tax revenue to small cities assistance
program and township road improvement grant program; appropriating money;
amending Minnesota Statutes 2020, section 297A.94; proposing coding for new
law in Minnesota Statutes, chapter 174.

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

Section 1.

new text begin [174.523] TOWNSHIP ROAD IMPROVEMENT GRANT PROGRAM;
APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Township road improvement accounts. new text end

new text begin (a) A township road
improvement account is created in the special revenue fund in the state treasury. The account
consists of money transferred to the fund by law and any other money donated, allotted,
transferred, or otherwise provided to the account. Money in the account is appropriated to
the commissioner for grants, as provided in this section.
new text end

new text begin (b) A township road improvement account is created in the bond proceeds fund. The
account consists of state bond proceeds and is appropriated to the commissioner for grants
under this section. Grants from this account may only be expended for purposes that are
permitted under the Minnesota Constitution, article XI, section 5.
new text end

new text begin Subd. 2. new text end

new text begin Advisory committee. new text end

new text begin (a) The commissioner shall establish a township road
improvement advisory committee consisting of five members, including:
new text end

new text begin (1) three township officers; and
new text end

new text begin (2) two engineers who do work for townships.
new text end

new text begin (b) The advisory committee shall provide recommendations to the commissioner
regarding expenditures from the accounts established in this section.
new text end

new text begin Subd. 3. new text end

new text begin Grant procedures and criteria. new text end

new text begin The commissioner shall establish procedures
for towns to apply for grants or loans from the accounts created under subdivision 1 and
criteria to be used to select projects for funding. The commissioner shall establish these
procedures and criteria in consultation with representatives of the Minnesota Association
of Townships and the appropriate state agency as needed. The criteria for determining
project priority and the amount of a grant or loan must be based on consideration of:
new text end

new text begin (1) the availability of other state, federal, and local funds;
new text end

new text begin (2) the effectiveness of the proposed project in eliminating a transportation system
deficiency;
new text end

new text begin (3) the number of people who will be positively impacted by the project;
new text end

new text begin (4) the project's contribution to local, regional, or state economic development or
redevelopment efforts, including livestock or other agricultural operations, logging, and
mining; and
new text end

new text begin (5) the ability of the town to adequately provide for the safe operation and maintenance
of the road or facility upon project completion.
new text end

new text begin Subd. 4. new text end

new text begin Administrative costs. new text end

new text begin A sum of 0.25 percent of the total amount in the accounts
created under subdivision 1, other than deposited amounts from the proceeds from the sale
of state bonds, is available to be used for administrative costs incurred by the department
in carrying out the provisions of this section.
new text end

Sec. 2.

Minnesota Statutes 2020, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for the
construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment was
made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of management and budget shall certify to the commissioner the date on
which the project received the conditional commitment. The amount deposited in the loan
guaranty account must be reduced by any refunds and by the costs incurred by the Department
of Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties, derived
from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
in the state treasury the revenues collected under section 297A.64, subdivision 1, including
interest and penalties and minus refunds, and credit them to the highway user tax distribution
fund.

(e) The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5, for the previous calendar year.

(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit
of revenues under paragraph (d), the commissioner shall deposit into the state treasury and
credit to the highway user tax distribution fund an amount equal to the estimated revenues
derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or
rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The
commissioner shall estimate the amount of sales tax revenue deposited under this paragraph
based on the amount of revenue deposited under paragraph (d).

(g) deleted text begin Starting after July 1, 2017, the commissioner shall deposit an amount of the
remittances monthly into the state treasury and credit them to the highway user tax
distribution fund as a portion of the estimated amount of taxes collected from the sale and
purchase of motor vehicle repair parts in that month. For the remittances between July 1,
2017, and June 30, 2019, the monthly deposit amount is $2,628,000. For remittances in
each subsequent fiscal year, the monthly deposit amount is $12,137,000. deleted text end new text begin The commissioner
must deposit the revenues derived from the taxes imposed on the sale and purchase of motor
vehicle repair and replacement parts in the state treasury and credit:
new text end

new text begin (1) 54 percent to the highway user tax distribution fund;
new text end

new text begin (2) three percent to the small cities assistance account in the special revenue fund
established under section 162.145;
new text end

new text begin (3) three percent to the township road improvement account in the special revenue fund
established under section 174.523; and
new text end

new text begin (4) the remainder to the general fund.
new text end

For purposes of this paragraph, "motor vehicle" has the meaning given in section 297B.01,
subdivision 11, and "motor vehicle repair and replacement parts" includes (i) all parts, tires,
accessories, and equipment incorporated into or affixed to the motor vehicle as part of the
motor vehicle maintenance and repair, and (ii) paint, oil, and other fluids that remain on or
in the motor vehicle as part of the motor vehicle maintenance or repair. For purposes of this
paragraph, "tire" means any tire of the type used on highway vehicles, if wholly or partially
made of rubber and if marked according to federal regulations for highway use.

(h) 72.43 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65, must be deposited by the commissioner in the state
treasury as follows:

(1) 50 percent of the receipts must be deposited in the heritage enhancement account in
the game and fish fund, and may be spent only on activities that improve, enhance, or protect
fish and wildlife resources, including conservation, restoration, and enhancement of land,
water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants; and

(5) two percent of the receipts must be deposited in the natural resources fund, and may
be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
and the Duluth Zoo.

(i) The revenue dedicated under paragraph (h) may not be used as a substitute for
traditional sources of funding for the purposes specified, but the dedicated revenue shall
supplement traditional sources of funding for those purposes. Land acquired with money
deposited in the game and fish fund under paragraph (h) must be open to public hunting
and fishing during the open season, except that in aquatic management areas or on lands
where angling easements have been acquired, fishing may be prohibited during certain times
of the year and hunting may be prohibited. At least 87 percent of the money deposited in
the game and fish fund for improvement, enhancement, or protection of fish and wildlife
resources under paragraph (h) must be allocated for field operations.

(j) The commissioner must deposit the revenues, including interest and penalties minus
any refunds, derived from the sale of items regulated under section 624.20, subdivision 1,
that may be sold to persons 18 years old or older and that are not prohibited from use by
the general public under section 624.21, in the state treasury and credit:

(1) 25 percent to the volunteer fire assistance grant account established under section
88.068;

(2) 25 percent to the fire safety account established under section 297I.06, subdivision
3; and

(3) the remainder to the general fund.

For purposes of this paragraph, the percentage of total sales and use tax revenue derived
from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be
sold to persons 18 years old or older and are not prohibited from use by the general public
under section 624.21, is a set percentage of the total sales and use tax revenues collected in
the state, with the percentage determined under Laws 2017, First Special Session chapter
1, article 3, section 39.

(k) The revenues deposited under paragraphs (a) to (j) do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section 297A.62,
subdivision 1a, which must be deposited as provided under the Minnesota Constitution,
article XI, section 15.

Sec. 3. new text begin EFFECTIVE DATE.
new text end

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