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SF 861

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
  1.1                          A bill for an act 
  1.2             relating to transportation; changing county state-aid 
  1.3             highway apportionment formula; changing gasoline and 
  1.4             special fuels excise tax rates; indexing rate of 
  1.5             taxation on gasoline and special fuels; reducing rate 
  1.6             of taxation on vehicle registration; providing for an 
  1.7             elected metropolitan council; allowing metropolitan 
  1.8             council to impose a metropolitan area sales tax; 
  1.9             limiting metropolitan council transit taxing 
  1.10            authority; making technical changes; amending 
  1.11            Minnesota Statutes 1996, sections 15.0597, subdivision 
  1.12            1; 162.07, subdivision 1; 168.013, subdivision 1a; 
  1.13            204B.09, subdivisions 1 and 1a; 204B.135, subdivision 
  1.14            2; 204B.32, subdivision 2; 296.02, subdivision 1b, and 
  1.15            by adding a subdivision; 296.025, subdivision 1b; 
  1.16            353D.01, subdivision 2; 473.123, subdivisions 1, 2a, 
  1.17            3a, 4, 7, and by adding subdivisions; 473.384, 
  1.18            subdivision 6; and 473.446, subdivisions 1 and 8; 
  1.19            proposing coding for new law in Minnesota Statutes, 
  1.20            chapter 473; repealing Minnesota Statutes 1996, 
  1.21            sections 473.39, subdivisions 1a and 1b; and 473.446, 
  1.22            subdivisions 1a and 3. 
  1.23  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.24     Section 1.  Minnesota Statutes 1996, section 15.0597, 
  1.25  subdivision 1, is amended to read: 
  1.26     Subdivision 1.  [DEFINITIONS.] As used in this section, the 
  1.27  following terms shall have the meanings given them. 
  1.28     (a) "Agency" means (1) a state board, commission, council, 
  1.29  committee, authority, task force, including an advisory task 
  1.30  force created under section 15.014 or 15.0593, a group created 
  1.31  by executive order of the governor, or other similar multimember 
  1.32  agency created by law and having statewide jurisdiction; and (2) 
  1.33  the metropolitan council, a metropolitan agency, capitol area 
  1.34  architectural and planning board, and any agency with a regional 
  2.1   jurisdiction created in this state pursuant to an interstate 
  2.2   compact. 
  2.3      (b) "Vacancy" or "vacant agency position" means (1) a 
  2.4   vacancy in an existing agency, or (2) a new, unfilled agency 
  2.5   position.  Vacancy includes a position that is to be filled 
  2.6   through appointment of a nonlegislator by a legislator or group 
  2.7   of legislators; vacancy does not mean (1) a vacant position on 
  2.8   an agency composed exclusively of persons employed by a 
  2.9   political subdivision or another agency, or (2) a vacancy to be 
  2.10  filled by a person required to have a specific title or position.
  2.11     (c) "Secretary" means the secretary of state. 
  2.12     Sec. 2.  Minnesota Statutes 1996, section 162.07, 
  2.13  subdivision 1, is amended to read: 
  2.14     Subdivision 1.  [FORMULA.] After deducting for 
  2.15  administrative costs and for the disaster account and research 
  2.16  account and state park roads as heretofore provided, the 
  2.17  remainder of the total sum provided for in section 162.06, 
  2.18  subdivision 1, shall be identified as the apportionment sum and 
  2.19  shall be apportioned by the commissioner to the several counties 
  2.20  on the basis of the needs of the counties as determined in 
  2.21  accordance with the following formula: paragraphs (a) and (b). 
  2.22     (a) Each county shall receive a base allocation equal to 
  2.23  its 1997 county state-aid distribution. 
  2.24     (b) After deducting the base allocations under paragraph 
  2.25  (a) from the apportionment sum, the remainder of the 
  2.26  apportionment sum shall be distributed as follows: 
  2.27     (1) An amount equal to 50 percent of the remainder shall be 
  2.28  divided among the counties so that each county receives the 
  2.29  percentage that its population bears to the population of the 
  2.30  state. 
  2.31     (2) An amount equal to ten five percent of the 
  2.32  apportionment sum remainder shall be apportioned equally among 
  2.33  the 87 counties. 
  2.34     (2) (3) An amount equal to ten five percent of the 
  2.35  apportionment sum remainder shall be apportioned among the 
  2.36  several counties so that each county shall receive of such 
  3.1   amount receives the percentage that its motor vehicle 
  3.2   registration for the calendar year preceding the one last past, 
  3.3   determined by residence of registrants, bears to the total 
  3.4   statewide motor vehicle registration.  
  3.5      (3) (4) An amount equal to 30 15 percent of the 
  3.6   apportionment sum remainder shall be apportioned among the 
  3.7   several counties so that each county shall receive of such 
  3.8   amount receives the percentage that its total lane-miles of 
  3.9   approved county state-aid highways bears to the total lane-miles 
  3.10  of approved statewide county state-aid highways.  In 1997 and 
  3.11  subsequent years no county may receive, as a result of an 
  3.12  apportionment under this clause based on lane-miles rather than 
  3.13  miles of approved county state-aid highways, an apportionment 
  3.14  that is less than its apportionment in 1996. 
  3.15     (4) (5) An amount equal to 50 25 percent of the 
  3.16  apportionment sum remainder shall be apportioned among the 
  3.17  several counties so that each county shall receive of such 
  3.18  amount receives the percentage that its money needs bears to the 
  3.19  sum of the money needs of all of the individual counties.; 
  3.20  provided, that the percentage of such amount that each county is 
  3.21  to receive shall be adjusted so that each county shall receive 
  3.22  in 1958 a total apportionment at least ten percent greater than 
  3.23  its total 1956 apportionments from the state road and bridge 
  3.24  fund; and provided further that those counties whose money needs 
  3.25  are thus adjusted shall never receive a percentage of the 
  3.26  apportionment sum less than the percentage that such county 
  3.27  received in 1958.  
  3.28     Sec. 3.  Minnesota Statutes 1996, section 168.013, 
  3.29  subdivision 1a, is amended to read: 
  3.30     Subd. 1a.  [PASSENGER AUTOMOBILES; HEARSES.] (a) On 
  3.31  passenger automobiles as defined in section 168.011, subdivision 
  3.32  7, and hearses, except as otherwise provided, the tax shall be 
  3.33  $10 plus an additional tax equal to 1.25 percent of the base 
  3.34  value.  
  3.35     (b) Subject to the classification provisions herein, "base 
  3.36  value" means the manufacturer's suggested retail price of the 
  4.1   vehicle including destination charge using list price 
  4.2   information published by the manufacturer or determined by the 
  4.3   registrar if no suggested retail price exists, and shall not 
  4.4   include the cost of each accessory or item of optional equipment 
  4.5   separately added to the vehicle and the suggested retail price. 
  4.6      (c) If the manufacturer's list price information contains a 
  4.7   single vehicle identification number followed by various 
  4.8   descriptions and suggested retail prices, the registrar shall 
  4.9   select from those listings only the lowest price for determining 
  4.10  base value. 
  4.11     (d) If unable to determine the base value because the 
  4.12  vehicle is specially constructed, or for any other reason, the 
  4.13  registrar may establish such value upon the cost price to the 
  4.14  purchaser or owner as evidenced by a certificate of cost but not 
  4.15  including Minnesota sales or use tax or any local sales or other 
  4.16  local tax. 
  4.17     (e) The registrar shall classify every vehicle in its 
  4.18  proper base value class as follows: 
  4.19                        FROM                   TO
  4.20                        $  0                $199.99
  4.21                         200                 399.99
  4.22  and thereafter a series of classes successively set in brackets 
  4.23  having a spread of $200 consisting of such number of classes as 
  4.24  will permit classification of all vehicles. 
  4.25     (f) The base value for purposes of this section shall be 
  4.26  the middle point between the extremes of its class. 
  4.27     (g) The registrar shall establish the base value, when new, 
  4.28  of every passenger automobile and hearse registered prior to the 
  4.29  effective date of Extra Session Laws 1971, chapter 31, using 
  4.30  list price information published by the manufacturer or any 
  4.31  nationally recognized firm or association compiling such data 
  4.32  for the automotive industry.  If unable to ascertain the base 
  4.33  value of any registered vehicle in the foregoing manner, the 
  4.34  registrar may use any other available source or method.  The tax 
  4.35  on all previously registered vehicles shall be computed upon the 
  4.36  base value thus determined taking into account the depreciation 
  5.1   provisions of paragraph (h). 
  5.2      (h) Except as provided in paragraph (i), the annual 
  5.3   additional tax computed upon the base value as provided herein, 
  5.4   during the first and second years year of vehicle life shall be 
  5.5   computed upon 100 percent of the base value; for the second 
  5.6   year, 95 percent of such value; for the third and fourth years 
  5.7   year, 90 percent of such value; for the fourth year, 85 percent 
  5.8   of such value; for the fifth and sixth years, 75 year, 70 
  5.9   percent of such value; for the sixth year, 60 percent of such 
  5.10  value; for the seventh year, 60 50 percent of such value; for 
  5.11  the eighth year, 40 35 percent of such value; for the ninth 
  5.12  year, 30 20 percent of such value; for the tenth year, ten 
  5.13  percent of such value; for the 11th and each succeeding year, 
  5.14  the sum of $25.  
  5.15     In no event shall the annual additional tax be less than 
  5.16  $25.  
  5.17     (i) The annual additional tax under paragraph (h) on a 
  5.18  motor vehicle on which the first annual tax was paid before 
  5.19  January 1, 1990, must not exceed the tax that was paid on that 
  5.20  vehicle the year before. 
  5.21     Sec. 4.  Minnesota Statutes 1996, section 204B.09, 
  5.22  subdivision 1, is amended to read: 
  5.23     Subdivision 1.  [CANDIDATES IN STATE AND COUNTY GENERAL 
  5.24  ELECTIONS.] Except as otherwise provided by this subdivision, 
  5.25  affidavits of candidacy and nominating petitions for county, 
  5.26  metropolitan council, state and federal offices filled at the 
  5.27  state general election shall be filed not more than 70 days nor 
  5.28  less than 56 days before the state primary.  The affidavit may 
  5.29  be prepared and signed at any time between 60 days before the 
  5.30  filing period opens and the last day of the filing period.  
  5.31  Notwithstanding other law to the contrary, the affidavit of 
  5.32  candidacy must be signed in the presence of a notarial officer.  
  5.33  Candidates for presidential electors may file petitions on or 
  5.34  before the state primary day.  Nominating petitions to fill 
  5.35  vacancies in nominations shall be filed as provided in section 
  5.36  204B.13.  No affidavit or petition shall be accepted later than 
  6.1   5:00 p.m. on the last day for filing.  Affidavits and petitions 
  6.2   for offices to be voted on in only one county shall be filed 
  6.3   with the county auditor of that county.  Affidavits and 
  6.4   petitions for offices to be voted on in more than one county 
  6.5   shall be filed with the secretary of state. 
  6.6      Sec. 5.  Minnesota Statutes 1996, section 204B.09, 
  6.7   subdivision 1a, is amended to read: 
  6.8      Subd. 1a.  [ABSENT CANDIDATES.] A candidate for county, 
  6.9   metropolitan council, state, or federal office who will be 
  6.10  absent from the state during the filing period may submit a 
  6.11  properly executed affidavit of candidacy, the appropriate filing 
  6.12  fee, and any necessary petitions in person to the filing 
  6.13  officer.  The candidate shall state in writing the reason for 
  6.14  being unable to submit the affidavit during the filing period.  
  6.15  The affidavit, filing fee, and petitions must be submitted to 
  6.16  the filing officer during the seven days immediately preceding 
  6.17  the candidate's absence from the state.  Nominating petitions 
  6.18  may be signed during the 14 days immediately preceding the date 
  6.19  when the affidavit of candidacy is filed. 
  6.20     Sec. 6.  Minnesota Statutes 1996, section 204B.135, 
  6.21  subdivision 2, is amended to read: 
  6.22     Subd. 2.  [OTHER ELECTION DISTRICTS.] For purposes of this 
  6.23  subdivision, "local government election district" means a county 
  6.24  district, park and recreation district, school district, 
  6.25  metropolitan council district, or soil and water conservation 
  6.26  district.  Local government election districts, other than city 
  6.27  wards covered by subdivision 1, may not be redistricted until 
  6.28  precinct boundaries are reestablished under section 204B.14, 
  6.29  subdivision 3, paragraph (c).  Election districts covered by 
  6.30  this subdivision must be redistricted within 80 days of the time 
  6.31  when the legislature has been redistricted or at least 15 weeks 
  6.32  before the state primary election in the year ending in two, 
  6.33  whichever comes first. 
  6.34     Sec. 7.  Minnesota Statutes 1996, section 204B.32, 
  6.35  subdivision 2, is amended to read: 
  6.36     Subd. 2.  [ALLOCATION OF ELECTION EXPENSES.] The secretary 
  7.1   of state shall develop procedures for the allocation of election 
  7.2   expenses among counties, municipalities, and school districts, 
  7.3   and the metropolitan council for elections that are held 
  7.4   concurrently.  The following expenses must be included in the 
  7.5   procedures:  salaries of election judges; postage for absentee 
  7.6   ballots and applications; preparation of polling places; 
  7.7   preparation and testing of electronic voting systems; ballot 
  7.8   preparation; publication of election notices and sample ballots; 
  7.9   transportation of ballots and election supplies; and 
  7.10  compensation for administrative expenses of the county auditor, 
  7.11  municipal clerk, or school district clerk. 
  7.12     Sec. 8.  Minnesota Statutes 1996, section 296.02, 
  7.13  subdivision 1b, is amended to read: 
  7.14     Subd. 1b.  [RATES IMPOSED.] The gasoline excise tax is 
  7.15  imposed at the following rates: 
  7.16     (a) From June 1, 1997, to March 31, 1998: 
  7.17     (1) E85 is taxed at the rate of 14.2 17.7 cents per gallon; 
  7.18     (2) M85 is taxed at the rate of 11.4 14.3 cents per gallon; 
  7.19  and 
  7.20     (3) all other gasoline is taxed at the rate of 20 25 cents 
  7.21  per gallon.  
  7.22     (b) After March 31, 1998, the gasoline excise tax rate must 
  7.23  be determined under subdivision 1c. 
  7.24     Sec. 9.  Minnesota Statutes 1996, section 296.02, is 
  7.25  amended by adding a subdivision to read: 
  7.26     Subd. 1c.  [ANNUAL GASOLINE TAX RATE ADJUSTMENT.] (a) 
  7.27  Beginning in 1998 and annually thereafter, before April 1 of 
  7.28  each year, the commissioner of revenue shall adjust the rate of 
  7.29  the gasoline excise tax and the rate of the special fuel excise 
  7.30  tax.  The new rate for each type of fuel must be calculated by 
  7.31  multiplying each rate in effect at the time of the calculation 
  7.32  by an amount obtained under paragraph (b).  Each new rate must 
  7.33  be rounded to the nearest 0.1 cent and is effective on April 1 
  7.34  of each year. 
  7.35     (b) Divide the annual average United States Consumer Price 
  7.36  Index for all urban consumers, United States city average, as 
  8.1   determined by the United States Department of Labor for the 
  8.2   previous year by that annual average for the year before the 
  8.3   previous year. 
  8.4      Sec. 10.  Minnesota Statutes 1996, section 296.025, 
  8.5   subdivision 1b, is amended to read: 
  8.6      Subd. 1b.  [TAX RATES.] The special fuel excise tax is 
  8.7   imposed at the following rates: 
  8.8      (a) From June 1, 1997, to March 31, 1998: 
  8.9      (1) Liquefied petroleum gas or propane is taxed at the rate 
  8.10  of 15 18.7 cents per gallon. 
  8.11     (2) Liquefied natural gas is taxed at the rate of 12 15 
  8.12  cents per gallon. 
  8.13     (3) Compressed natural gas is taxed at the rate 
  8.14  of $1.739 $2.174 per thousand cubic feet; or 20 25 cents per 
  8.15  gasoline equivalent, as defined by the National Conference on 
  8.16  Weights and Measures, which is 5.66 pounds of natural gas. 
  8.17     (4) All other special fuel is taxed at the same rate as the 
  8.18  gasoline excise tax. 
  8.19     (b) After March 31, 1998, the special fuel excise tax rate 
  8.20  must be determined under section 296.02, subdivision 1c. 
  8.21     Sec. 11.  Minnesota Statutes 1996, section 353D.01, 
  8.22  subdivision 2, is amended to read: 
  8.23     Subd. 2.  [ELIGIBILITY.] (a) Eligibility to participate in 
  8.24  the defined contribution plan is available to: 
  8.25     (1) elected local government officials of a governmental 
  8.26  subdivision who elect to participate in the plan under section 
  8.27  353D.02, subdivision 1, and who, for the elected service 
  8.28  rendered to a governmental subdivision, are not members of the 
  8.29  public employees retirement association within the meaning of 
  8.30  section 353.01, subdivision 7; 
  8.31     (2) physicians who, if they did not elect to participate in 
  8.32  the plan under section 353D.02, subdivision 2, would meet the 
  8.33  definition of member under section 353.01, subdivision 7; and 
  8.34     (3) basic and advanced life support emergency medical 
  8.35  service personnel employed by or providing services for any 
  8.36  public ambulance service or privately operated ambulance service 
  9.1   that receives an operating subsidy from a governmental entity 
  9.2   that elects to participate under section 353D.02, subdivision 3. 
  9.3      (b) For purposes of this chapter, an elected local 
  9.4   government official includes a person appointed to fill a 
  9.5   vacancy in an elective office and a member of the metropolitan 
  9.6   council.  Service as an elected local government official only 
  9.7   includes service for the governmental subdivision for which the 
  9.8   official was elected by the public-at-large.  Service as an 
  9.9   elected local government official ceases and eligibility to 
  9.10  participate terminates when the person ceases to be an elected 
  9.11  official.  An elected local government official does not include 
  9.12  an elected county sheriff.  
  9.13     (c) Elected local government officials, physicians, and 
  9.14  first response personnel and emergency medical service personnel 
  9.15  who are currently covered by a public or private pension plan 
  9.16  because of their employment or provision of services are not 
  9.17  eligible to participate in the public employees defined 
  9.18  contribution plan.  
  9.19     (d) A former participant is a person who has terminated 
  9.20  eligible employment or service and has not withdrawn the value 
  9.21  of the person's individual account. 
  9.22     Sec. 12.  Minnesota Statutes 1996, section 473.123, 
  9.23  subdivision 1, is amended to read: 
  9.24     Subdivision 1.  [CREATION.] A metropolitan council with 
  9.25  jurisdiction in the metropolitan area is established as a public 
  9.26  corporation and political subdivision of the state.  It shall be 
  9.27  under the supervision and control of 17 16 members, all of whom 
  9.28  shall be residents of the metropolitan area. 
  9.29     Sec. 13.  Minnesota Statutes 1996, section 473.123, 
  9.30  subdivision 2a, is amended to read: 
  9.31     Subd. 2a.  [TERMS.] Following each apportionment of council 
  9.32  districts, as provided under subdivision 3a, council members 
  9.33  must be appointed elected on a nonpartisan basis from newly 
  9.34  drawn districts as provided in subdivision 3a.  Each council 
  9.35  member, other than the chair, must reside in the council 
  9.36  district represented.  Each council district must be represented 
 10.1   by one member of the council.  The terms of members end with the 
 10.2   term of the governor, except that all terms expire on the 
 10.3   effective date of the next apportionment.  A member serves at 
 10.4   the pleasure of the governor are as follows:  members 
 10.5   representing even-numbered districts for terms ending the first 
 10.6   Monday in January of the year ending in the numeral "7" and 
 10.7   members representing odd-numbered districts for terms ending the 
 10.8   first Monday in January of the year ending in the numeral "5."  
 10.9   Thereafter, the term of each member is four years, with terms 
 10.10  ending the first Monday in January, except that all terms expire 
 10.11  the first Monday in January after the effective date of the next 
 10.12  apportionment.  A member shall continue to serve the member's 
 10.13  district until a successor is appointed elected and qualified; 
 10.14  except that, following each apportionment, the member shall 
 10.15  continue to serve at large until the governor appoints 16 
 10.16  council members, one from each of the newly drawn council 
 10.17  districts as provided under subdivision 3a, to serve terms as 
 10.18  provided under this section.  The appointment to the council 
 10.19  must be made by the first Monday in March of the year in which 
 10.20  the term ends.  
 10.21     Sec. 14.  Minnesota Statutes 1996, section 473.123, 
 10.22  subdivision 3a, is amended to read: 
 10.23     Subd. 3a.  [REDISTRICTING.] The legislature metropolitan 
 10.24  council shall redraw the boundaries of the council districts 
 10.25  after each decennial federal census so that each district has 
 10.26  substantially equal population.  Redistricting is effective in 
 10.27  the year ending in the numeral "3."  Within 60 days after a 
 10.28  redistricting plan takes effect, the governor shall appoint 
 10.29  members within the time provided in section 204B.135, 
 10.30  subdivision 2.  Council districts must be bounded by town, 
 10.31  municipal, ward, or precinct lines.  A district must be composed 
 10.32  of contiguous territory as regular and compact in form as 
 10.33  practicable, and the districts must be as nearly equal in 
 10.34  population as possible.  No district may vary in population more 
 10.35  than ten percent from the average for all districts, unless the 
 10.36  result forces a voting precinct to be split.  A majority of the 
 11.1   least populous districts must contain not less than a majority 
 11.2   of the population of the metropolitan area.  If it appears after 
 11.3   a federal census that the districts are not in accord with the 
 11.4   standards in this subdivision, the council must be redistricted 
 11.5   within the times set in section 204B.135, subdivision 2.  Before 
 11.6   acting to redistrict, the council shall publish three weeks' 
 11.7   notice of its purpose, stating the time and place of the meeting 
 11.8   where the matter will be considered, in newspapers of general 
 11.9   circulation.  Council members elected from the newly drawn 
 11.10  districts to serve terms as provided under subdivision 2a. 
 11.11     Sec. 15.  Minnesota Statutes 1996, section 473.123, is 
 11.12  amended by adding a subdivision to read: 
 11.13     Subd. 3d.  [ELECTIONS; PROCEDURES.] (a) Except as provided 
 11.14  in this section, Minnesota election law applies to council 
 11.15  elections as far as practicable. 
 11.16     (b) Affidavits of candidacy must be filed with the 
 11.17  secretary of state as provided under section 204B.06. 
 11.18     (c) The filing fee is the same as for county office as 
 11.19  provided in section 204B.11, subdivision 1, paragraph (d). 
 11.20     (d) At the time of filing an affidavit of candidacy, a 
 11.21  candidate may present a petition in place of the filing fee with 
 11.22  the same number of signatures required for a candidate for 
 11.23  county office in section 204B.11, subdivision 2. 
 11.24     (e) Council members must be elected at the state and county 
 11.25  general election held in the year before the terms of office 
 11.26  that they seek expire. 
 11.27     Sec. 16.  Minnesota Statutes 1996, section 473.123, 
 11.28  subdivision 4, is amended to read: 
 11.29     Subd. 4.  [CHAIR; APPOINTMENT, OFFICERS,; SELECTION; DUTIES 
 11.30  AND COMPENSATION.] (a) The chair of the metropolitan council 
 11.31  shall be appointed by the governor as the 17th voting member 
 11.32  thereof by and with the advice and consent of the senate to 
 11.33  serve at the pleasure of the governor to represent the 
 11.34  metropolitan area at large.  Senate confirmation shall be as 
 11.35  provided by section 15.066 must be elected by and from among the 
 11.36  members of the council at the first meeting of the council after 
 12.1   the first Monday in January each year and serves for a term of 
 12.2   one year.  In the event of a tie vote, the chair shall decide 
 12.3   the issue. 
 12.4      The chair of the metropolitan council shall, if present, 
 12.5   preside at meetings of the council, have the primary 
 12.6   responsibility for meeting with local elected officials, serve 
 12.7   as the principal legislative liaison, present to the governor 
 12.8   and the legislature, after council approval, the council's plans 
 12.9   for regional governance and operations, serve as the principal 
 12.10  spokesperson of the council, and perform other duties assigned 
 12.11  by the council or by law. 
 12.12     (b) The metropolitan council shall elect other officers as 
 12.13  it deems necessary for the conduct of its affairs for a one-year 
 12.14  term.  A secretary and treasurer need not be members of the 
 12.15  metropolitan council.  Meeting times and places shall be fixed 
 12.16  by the metropolitan council and special meetings may be called 
 12.17  by a majority of the members of the metropolitan council or by 
 12.18  the chair.  The chair and each metropolitan council member shall 
 12.19  be reimbursed for actual and necessary expenses.  The annual 
 12.20  budget of the council shall provide as a separate account 
 12.21  anticipated expenditures for compensation, travel, and 
 12.22  associated expenses for the chair and members, and compensation 
 12.23  or reimbursement shall be made to the chair and members only 
 12.24  when budgeted. 
 12.25     (c) Each member of the council shall attend and participate 
 12.26  in council meetings and meet regularly with local elected 
 12.27  officials and legislative members from the council member's 
 12.28  district.  Each council member shall serve on at least one 
 12.29  division committee for transportation, environment, or community 
 12.30  development. 
 12.31     (d) In the performance of its duties the metropolitan 
 12.32  council may adopt policies and procedures governing its 
 12.33  operation, establish committees, and, when specifically 
 12.34  authorized by law, make appointments to other governmental 
 12.35  agencies and districts.  
 12.36     Sec. 17.  Minnesota Statutes 1996, section 473.123, is 
 13.1   amended by adding a subdivision to read: 
 13.2      Subd. 4a.  [COMPENSATION.] Each metropolitan council member 
 13.3   must be paid as authorized by the metropolitan council.  The 
 13.4   chair and each metropolitan council member must be reimbursed 
 13.5   for actual and necessary expenses.  The annual budget of the 
 13.6   council must provide as a separate account anticipated 
 13.7   expenditures for compensation, travel, and associated expenses 
 13.8   for the chair and members, and compensation or reimbursement 
 13.9   must be made to the chair and members only when budgeted. 
 13.10     Sec. 18.  Minnesota Statutes 1996, section 473.123, 
 13.11  subdivision 7, is amended to read: 
 13.12     Subd. 7.  [PERFORMANCE AND BUDGET ANALYST.] The council, 
 13.13  other than the chair, may hire a performance and budget analyst 
 13.14  to assist the 16 council members with policy and budget analysis 
 13.15  and evaluation of the council's performance.  The analyst may 
 13.16  recommend and the council may hire up to two additional analysts 
 13.17  to assist the council with performance evaluation and budget 
 13.18  analysis.  The analyst and any additional analysts hired shall 
 13.19  serve at the pleasure of the council members.  The 16 members of 
 13.20  the council may prescribe all terms and conditions for the 
 13.21  employment of the analyst and any additional analysts hired, 
 13.22  including, but not limited to, the fixing of compensation, 
 13.23  benefits, and insurance.  The analyst shall prepare the budget 
 13.24  for the provisions of this section subdivision and submit the 
 13.25  budget for council approval and inclusion in the council's 
 13.26  overall budget. 
 13.27     Sec. 19.  Minnesota Statutes 1996, section 473.384, 
 13.28  subdivision 6, is amended to read: 
 13.29     Subd. 6.  [FINANCIAL ASSISTANCE FOR CERTAIN PROVIDERS.] The 
 13.30  council shall provide financial assistance to recipients who 
 13.31  were receiving assistance by contract with the commissioner of 
 13.32  transportation under Minnesota Statutes 1982, section 174.24, 
 13.33  subdivision 3 on July 1, 1984, so that the percentage of total 
 13.34  operating cost, as defined by the council, paid by the recipient 
 13.35  from all local sources of revenue, including operating revenue, 
 13.36  does not exceed the percentage for the recipient's 
 14.1   classification as determined by the commissioner of 
 14.2   transportation under the commissioner's final contract with the 
 14.3   recipient.  The council may include funds received under section 
 14.4   473.446, subdivision 1a, as a local source of revenue.  The 
 14.5   remainder of the total operating cost will be paid by the 
 14.6   council less all assistance received by the recipient for that 
 14.7   purpose from any federal source.  
 14.8      If a recipient informs the council in writing prior to the 
 14.9   distribution of financial assistance for any year that paying 
 14.10  its designated percentage of total operating cost from local 
 14.11  sources will cause undue hardship, the council may adjust the 
 14.12  percentage as it deems equitable.  If for any year the funds 
 14.13  available to the council are insufficient to allow the council 
 14.14  to pay its share of total operating cost for those recipients, 
 14.15  the council shall reduce its share in each classification to the 
 14.16  extent necessary. 
 14.17     Sec. 20.  [473.440] [METROPOLITAN AREA SALES AND USE TAX.] 
 14.18     Subdivision 1.  [IMPOSITION.] Notwithstanding section 
 14.19  477A.016, or any other contrary provision of law, ordinance, or 
 14.20  city charter, the metropolitan council may impose an additional 
 14.21  metropolitan area sales tax at a rate not to exceed one-half of 
 14.22  one percent on all sales taxable under chapter 297A that occur 
 14.23  in the metropolitan area, as defined in section 473.121, and may 
 14.24  impose an additional compensating use tax of up to one-half of 
 14.25  one percent on uses of property within the metropolitan area, 
 14.26  the sale of which would be subject to the additional sales tax 
 14.27  but for the fact the property was sold outside the metropolitan 
 14.28  area.  The metropolitan council may not impose the tax on the 
 14.29  purchase or acquisition of motor vehicles. 
 14.30     The tax imposed by this section may be adjusted annually by 
 14.31  the metropolitan council such that the rate imposed does not 
 14.32  exceed one-half of one percent. 
 14.33     The tax imposed by this section must not be counted in 
 14.34  calculating the maximum 12 percent specified in Laws 1986, 
 14.35  chapter 396, section 5, subdivision 2, for taxes on lodging in 
 14.36  the city of Minneapolis. 
 15.1      Subd. 2.  [FUTURE IMPOSITION.] In the event of any 
 15.2   amendment to chapter 297A enacted subsequent to the date of 
 15.3   final enactment of this section, the metropolitan council may 
 15.4   extend the tax imposed in this section to any such sales or uses.
 15.5      Subd. 3.  [ADMINISTRATION AND COLLECTION.] The commissioner 
 15.6   of revenue shall administer and collect the tax imposed under 
 15.7   this section, in the manner provided by chapters 289A and 297A. 
 15.8      The commissioner may enter into appropriate agreements with 
 15.9   the metropolitan council to provide for collection by the state 
 15.10  of the tax imposed pursuant to subdivision 2.  The commissioner 
 15.11  may charge the metropolitan council from the proceeds of any tax 
 15.12  a reasonable fee for its collection. 
 15.13     Subd. 4.  [USE OF REVENUE.] The metropolitan council shall 
 15.14  use the revenue received from the tax imposed in subdivision 2 
 15.15  as follows: 
 15.16     (1) to pay the cost of collecting the tax; 
 15.17     (2) to maintain, coordinate, and improve transit services 
 15.18  in the metropolitan area, except that the tax revenue must not 
 15.19  be used for special transportation service in the metropolitan 
 15.20  area or for elderly and handicapped service, as defined in 
 15.21  section 174.22, subdivision 13; 
 15.22     (3) to provide full and timely payment of certificates of 
 15.23  indebtedness, bonds, including refunding bonds, or other 
 15.24  obligations issued or to be issued under section 473.39 or 
 15.25  473.436, and to which the council has specifically pledged tax 
 15.26  levies; 
 15.27     (4) to satisfy judgments entered by any court against the 
 15.28  former regional transit board, the former metropolitan transit 
 15.29  commission, or the metropolitan council in matters relating to 
 15.30  transit in the metropolitan area; 
 15.31     (5) to provide to applicants receiving assistance for a 
 15.32  replacement service program an amount not to exceed the 
 15.33  allowable amount calculated under section 473.388, subdivision 
 15.34  4, for taxes payable in 1995; and 
 15.35     (6) to carry out the powers and duties in sections 473.371 
 15.36  to 473.449, excluding section 473.386. 
 16.1      Sec. 21.  Minnesota Statutes 1996, section 473.446, 
 16.2   subdivision 1, is amended to read: 
 16.3      Subdivision 1.  [TAXATION WITHIN TRANSIT TAXING DISTRICT.] 
 16.4   For the purposes of sections 473.405 to 473.449 and the 
 16.5   metropolitan transit system, except as otherwise provided in 
 16.6   this subdivision and subdivision 1b, the council shall may levy 
 16.7   each year upon all taxable property within the metropolitan 
 16.8   transit taxing district, defined in subdivision 2, a transit tax 
 16.9   consisting of: 
 16.10     (a) an amount which shall be used for payment of the 
 16.11  expenses of operating transit and paratransit service and to 
 16.12  provide for payment of obligations issued by the council under 
 16.13  section 473.436, subdivision 6; 
 16.14     (b) an additional amount, if any, the council determines to 
 16.15  be necessary to provide for the full and timely payment of its 
 16.16  certificates of indebtedness and other obligations outstanding 
 16.17  on July 1, 1985, to which property taxes under this section have 
 16.18  been pledged; and 
 16.19     (c) an additional amount necessary to provide full and 
 16.20  timely payment of certificates of indebtedness, bonds, including 
 16.21  refunding bonds or other obligations issued or to be issued 
 16.22  under section 473.39 by the council for purposes of acquisition 
 16.23  and betterment of property and other improvements of a capital 
 16.24  nature and to which the council has specifically pledged tax 
 16.25  levies under this clause. 
 16.26     The property tax levied by the council for general purposes 
 16.27  under paragraph (a) must not exceed the following amount for the 
 16.28  years specified: 
 16.29     (1) for taxes payable in 1995, the council's property tax 
 16.30  levy limitation for general transit purposes is equal to the 
 16.31  former regional transit board's property tax levy limitation for 
 16.32  general transit purposes under this subdivision, for taxes 
 16.33  payable in 1994, multiplied by an index for market valuation 
 16.34  changes equal to the total market valuation of all taxable 
 16.35  property located within the metropolitan transit taxing district 
 16.36  for the current taxes payable year divided by the total market 
 17.1   valuation of all taxable property located within the 
 17.2   metropolitan transit taxing district for the previous taxes 
 17.3   payable year; and 
 17.4      (2) for taxes payable in 1996 and subsequent years, the 
 17.5   product of (i) the council's property tax levy limitation for 
 17.6   general transit purposes for the previous year determined under 
 17.7   this subdivision before reduction by the amount levied by any 
 17.8   municipality in the previous year under section 473.388, 
 17.9   subdivision 7, multiplied by (ii) an index for market valuation 
 17.10  changes equal to the total market valuation of all taxable 
 17.11  property located within the metropolitan transit taxing district 
 17.12  for the current taxes payable year divided by the total market 
 17.13  valuation of all taxable property located within the 
 17.14  metropolitan transit taxing district for the previous taxes 
 17.15  payable year, minus the amount levied by any municipality in the 
 17.16  current levy year under section 473.388, subdivision 7. 
 17.17     The portion of the property tax levy for transit district 
 17.18  operating purposes attributable to a municipality that has 
 17.19  exercised a local levy option under section 473.388, subdivision 
 17.20  7, is the amount as determined under subdivision 1b.  The 
 17.21  portion of the property tax levy for transit district operating 
 17.22  purposes attributable to the remaining municipalities within the 
 17.23  transit district is found by subtracting the portions 
 17.24  attributable to the municipalities that have exercised a local 
 17.25  levy option under section 473.388, subdivision 7. 
 17.26     For the taxes payable year 1995, the index for market 
 17.27  valuation changes shall be multiplied by an amount equal to the 
 17.28  sum of the regional transit board's property tax levy limitation 
 17.29  for the taxes payable year 1994 and $160,665.  The $160,665 
 17.30  increase shall be a permanent adjustment to the levy limit base 
 17.31  used in determining the regional transit board's property tax 
 17.32  levy limitation for general purposes for subsequent taxes 
 17.33  payable years. 
 17.34     For the purpose of determining the council's property tax 
 17.35  levy limitation for general transit purposes under this 
 17.36  subdivision, "total market valuation" means the total market 
 18.1   valuation of all taxable property within the metropolitan 
 18.2   transit taxing district without valuation adjustments for fiscal 
 18.3   disparities (chapter 473F), tax increment financing (sections 
 18.4   469.174 to 469.179), and high voltage transmission lines 
 18.5   (section 273.425). 
 18.6      The county auditor shall reduce the tax levied pursuant to 
 18.7   this section and section 473.388 on all property within 
 18.8   statutory and home rule charter cities and towns that receive 
 18.9   full-peak service and limited off-peak service by an amount 
 18.10  equal to the tax levy that would be produced by applying a rate 
 18.11  of 0.510 percent of net tax capacity on the property.  The 
 18.12  county auditor shall reduce the tax levied pursuant to this 
 18.13  section and section 473.388 on all property within statutory and 
 18.14  home rule charter cities and towns that receive limited peak 
 18.15  service by an amount equal to the tax levy that would be 
 18.16  produced by applying a rate of 0.765 percent of net tax capacity 
 18.17  on the property.  The amounts so computed by the county auditor 
 18.18  shall be submitted to the commissioner of revenue as part of the 
 18.19  abstracts of tax lists required to be filed with the 
 18.20  commissioner under section 275.29.  Any prior year adjustments 
 18.21  shall also be certified in the abstracts of tax lists.  The 
 18.22  commissioner shall review the certifications to determine their 
 18.23  accuracy and may make changes in the certification as necessary 
 18.24  or return a certification to the county auditor for 
 18.25  corrections.  The commissioner shall pay to the council and to 
 18.26  the municipalities levying under section 473.388, subdivision 7, 
 18.27  the amounts certified by the county auditors on the dates 
 18.28  provided in section 273.1398, apportioned between the council 
 18.29  and the municipality in the same proportion as the total transit 
 18.30  levy is apportioned within the municipality.  There is annually 
 18.31  appropriated from the general fund in the state treasury to the 
 18.32  department of revenue the amounts necessary to make these 
 18.33  payments.  
 18.34     For the purposes of this subdivision, "full-peak and 
 18.35  limited off-peak service" means peak period regular route 
 18.36  service, plus weekday midday regular route service at intervals 
 19.1   longer than 60 minutes on the route with the greatest frequency; 
 19.2   and "limited peak period service" means peak period regular 
 19.3   route service only.  
 19.4      For the purposes of property taxes payable in the following 
 19.5   year, the council shall annually determine which cities and 
 19.6   towns qualify for the 0.510 percent or 0.765 percent tax 
 19.7   capacity rate reduction and shall certify this list to the 
 19.8   county auditor of the county wherein such cities and towns are 
 19.9   located on or before September 15.  No changes may be made to 
 19.10  the annual list after September 15. 
 19.11     The council may levy the tax without limitation to pay the 
 19.12  principal and interest due on bonds, certificates of 
 19.13  indebtedness, or other obligations issued by the council before 
 19.14  January 1, 1997, under section 473.39 or 473.436.  After January 
 19.15  1, 1997, the council may levy the tax only if the metropolitan 
 19.16  area sales tax under section 473.440 is levied at a rate of 
 19.17  one-half of one percent and if anticipated revenues from the 
 19.18  metropolitan area sales tax are not sufficient to pay the 
 19.19  principal and interest due on any bonds, certificates of 
 19.20  indebtedness, or other obligations issued by the council after 
 19.21  January 1, 1997, under section 473.39 or 473.436.  After January 
 19.22  1, 1997, the tax levy must not exceed the annual principal and 
 19.23  interest due on obligations issued under section 473.39 or 
 19.24  473.436.  The taxes under this subdivision must be levied and 
 19.25  collected in the manner specified in section 473.13, subdivision 
 19.26  2. 
 19.27     Sec. 22.  Minnesota Statutes 1996, section 473.446, 
 19.28  subdivision 8, is amended to read: 
 19.29     Subd. 8.  [STATE REVIEW.] The commissioner of revenue shall 
 19.30  certify the council's levy limitation under this section to the 
 19.31  council by August 1 of the levy year.  The council must certify 
 19.32  its proposed property tax levy under this section to the 
 19.33  commissioner of revenue by September 1 of the levy year.  The 
 19.34  commissioner of revenue shall annually determine whether the 
 19.35  property tax for transit purposes certified by the council for 
 19.36  levy following the adoption of its proposed budget is within the 
 20.1   levy limitation imposed by subdivisions 1 and 1b.  The 
 20.2   commissioner shall also annually determine whether the transit 
 20.3   tax imposed on all taxable property within the metropolitan 
 20.4   transit area but outside of the metropolitan transit taxing 
 20.5   district is within the levy limitation imposed by subdivision 
 20.6   1a.  The determination must be completed prior to September 10 
 20.7   of each year.  If current information regarding market valuation 
 20.8   in any county is not transmitted to the commissioner in a timely 
 20.9   manner, the commissioner may estimate the current market 
 20.10  valuation within that county for purposes of making the 
 20.11  calculations. 
 20.12     Sec. 23.  [TRANSITION.] 
 20.13     Subdivision 1.  [CONTINUATION OF TERMS.] The appointed 
 20.14  chair and appointed metropolitan council members holding office 
 20.15  on the effective date of this section, and any successor 
 20.16  appointed to serve as the council chair or as a member, shall 
 20.17  continue in office until the first Monday in January 1999. 
 20.18     Subd. 2.  [COMPENSATION.] Until provided otherwise by the 
 20.19  metropolitan council under Minnesota Statutes, section 473.123, 
 20.20  subdivision 4a, the annual compensation for elected metropolitan 
 20.21  council members, including the chair, is $35,000. 
 20.22     Subd. 3.  [INITIAL TERMS.] For the elected metropolitan 
 20.23  council taking office on the first Monday in January 1999, the 
 20.24  terms of the members representing even-numbered districts end 
 20.25  the first Monday in January 2003, and the terms of the members 
 20.26  representing odd-numbered districts end the first Monday in 
 20.27  January 2001. 
 20.28     Sec. 24.  [REPEALER.] 
 20.29     Minnesota Statutes 1996, sections 473.39, subdivisions 1a 
 20.30  and 1b; and 473.446, subdivisions 1a and 3, are repealed. 
 20.31     Sec. 25.  [EFFECTIVE DATE.] 
 20.32     Sections 1, 4 to 7, and 11 to 18 are effective the first 
 20.33  Monday in January 1999.  Section 2 is effective for county 
 20.34  state-aid highway fund distributions in 1998 and thereafter.  
 20.35  Section 3 is effective July 1, 1997.  Sections 8 and 10 are 
 20.36  effective June 1, 1997, and apply to all gasoline in distributor 
 21.1   storage on that date.  Sections 19 to 22 and 24 are effective 
 21.2   January 1, 1998.  Section 23 is effective the day following 
 21.3   final enactment.  
 21.4      Sections 1, 4 to 7, and 11 to 23 apply to the counties of 
 21.5   Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.