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Minnesota Legislature

Office of the Revisor of Statutes

SF 5

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to transportation; authorizing county wheelage tax and providing
for collection; modifying vehicle registration tax provisions; creating transit
fund and accounts; establishing phase in of motor vehicle sales tax revenues
to transportation; modifying motor fuel and special fuels taxes rates and
providing for indexing of fuel taxes; modifying formula for distribution of
county state-aid highway fund; dedicating sales tax on motor vehicle leases
to transportation; authorizing local transportation sales tax; creating road user
fee task force; authorizing general obligation bonding and trunk highway fund
bonding; appropriating money; amending Minnesota Statutes 2006, sections
16A.88; 161.04, by adding a subdivision; 162.07, subdivision 1, by adding
subdivisions; 163.051; 168.011, subdivision 6; 168.013, subdivisions 1, 1a;
168.017, subdivision 3; 174.24, subdivision 1; 296A.07, subdivision 3; 296A.08,
subdivision 2; 297A.815, by adding subdivisions; 297A.94; 297B.09, subdivision
1; 473.39, by adding a subdivision; proposing coding for new law in Minnesota
Statutes, chapters 296A; 297A.

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

ARTICLE 1

COUNTY WHEELAGE TAX

Section 1.

Minnesota Statutes 2006, section 163.051, is amended to read:


163.051 deleted text beginMETROPOLITANdeleted text end COUNTY WHEELAGE TAX.

Subdivision 1.

Tax authorized.

The board of commissioners of each deleted text beginmetropolitandeleted text end
county is authorized to levy new text beginby resolution new text enda wheelage tax of deleted text begin$5 for the year 1972 and
each subsequent year thereafter by resolution
deleted text endnew text begin up to $20 each yearnew text end on each motor vehicle,
except motorcycles as defined in section 169.01, subdivision 4, deleted text beginwhich is kept in such
county when not in operation and which is
deleted text end new text beginthat is domiciled in the county and new text endsubject to
annual registration and taxation under chapter 168. The board may provide by resolution
for collection of the wheelage tax by county officials or deleted text beginit may request that the tax be
collected
deleted text end by the state registrar of motor vehicles, and the deleted text beginstatedeleted text end registrar deleted text beginof motor vehiclesdeleted text end
shall collect deleted text beginsuchdeleted text endnew text begin thenew text end tax on behalf of the county if deleted text beginrequested, as provided in subdivision 2deleted text endnew text begin
provided in the board resolution
new text end.

Subd. 2.

Collection by registrar deleted text beginof motor vehiclesdeleted text end.

The wheelage tax levied by
any deleted text beginmetropolitandeleted text end county, if made collectible by the deleted text beginstatedeleted text end registrar deleted text beginof motor vehiclesdeleted text end, shall
be certified by the county auditor to the registrar not later than August 1 in the year before
deleted text begin thedeleted text endnew text begin anew text end calendar year deleted text beginor yearsdeleted text end for which the tax is levied, and the registrar shall collect deleted text beginsuchdeleted text endnew text begin
the
new text end tax with the deleted text beginmotordeleted text end vehicle deleted text begintaxesdeleted text endnew text begin registration taxnew text end on deleted text beginthedeleted text endnew text begin each new text end affected deleted text beginvehiclesdeleted text endnew text begin vehicle
new text endfor deleted text beginsuchdeleted text endnew text begin that new text end year deleted text beginor yearsdeleted text end. deleted text beginEverydeleted text end new text beginAn new text endowner deleted text beginand every operatordeleted text end of deleted text beginsuchdeleted text end a motor vehicle
new text begin subject to the wheelage tax new text endshall furnishdeleted text begin to the registrar deleted text endall information requested by the
registrarnew text begin relating to the wheelage taxnew text end. deleted text beginNo state motordeleted text endnew text begin Anew text end vehicle new text beginregistration new text endtax deleted text beginon any
such motor vehicle for any such year shall
deleted text endnew text begin may not new text end be received or deemed paid unless the
applicable wheelage tax is paid deleted text begintherewithdeleted text end. deleted text beginThe proceeds of the wheelage tax levied by any
metropolitan county, less any amount retained by the registrar to pay costs of collection of
the wheelage tax, shall be paid to the commissioner of finance and deposited in the state
treasury to the credit of the county wheelage tax fund of each metropolitan county.
deleted text end

Subd. 2a.

Tax proceeds deposited; costs of collection; appropriation.

Notwithstanding deleted text beginthe provisions ofdeleted text end any other law, the deleted text beginstatedeleted text end registrar deleted text beginof motor vehiclesdeleted text end
shall deposit the proceeds of the wheelage tax imposed by subdivision 2, to the credit of
thedeleted text begin county wheelage taxdeleted text endnew text begin road and bridge new text end fund of eachdeleted text begin metropolitandeleted text end countynew text begin that levies the
wheelage tax
new text end. The amount necessary to pay the costs of deleted text begincollection of saiddeleted text endnew text begin collecting the
new text endtax is appropriated new text beginto the registrar new text endfrom the county deleted text beginwheelage taxdeleted text endnew text begin road and bridge new text end fund of
each deleted text beginmetropolitandeleted text end county deleted text beginto the state registrar of motor vehiclesdeleted text endnew text begin that levies the taxnew text end.

deleted text begin Subd. 3. deleted text end

deleted text begin Distribution to metropolitan county; appropriation. deleted text end

deleted text begin On or before April
1 in 1972 and each subsequent year, the commissioner of finance shall issue a warrant in
favor of the treasurer of each metropolitan county for which the registrar has collected a
wheelage tax in the amount of such tax then on hand in the county wheelage tax fund.
There is hereby appropriated from the county wheelage tax fund each year, to each
metropolitan county entitled to payments authorized by this section, sufficient moneys
to make such payments.
deleted text end

deleted text begin Subd. 4. deleted text end

deleted text begin Use of tax. deleted text end

deleted text begin The treasurer of each metropolitan county receiving moneys
under subdivision 3 shall deposit such moneys in the county road and bridge fund. The
moneys shall be used for purposes authorized by law which are highway purposes within
the meaning of the Minnesota Constitution, article 14.
deleted text end

deleted text begin Subd. 5. deleted text end

deleted text begin Effect on road and bridge levy. deleted text end

deleted text begin The county auditor of each metropolitan
county shall reduce the amount of the property taxes levied pursuant to law in 1973 for
collection in 1974, by the board of commissioners of such county for the county road
and bridge fund, by the following amount: Anoka County, $341,750; Carver County,
$86,725; Dakota County, $386,165; Hennepin County, $2,728,425; Ramsey County,
$1,276,815; Scott County, $104,805; Washington County, $227,220, and shall spread only
the balance thereof on the tax rolls for collection in 1972. The county auditor shall also
reduce the amount of such taxes levied pursuant to law in 1972 and any subsequent year,
for collection in the respective ensuing years, by the amount of wheelage taxes received
by the county in the 12 months immediately preceding such levy.
deleted text end

deleted text begin Subd. 6. deleted text end

deleted text begin Metropolitan county defined. deleted text end

deleted text begin "Metropolitan county" means any of the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
deleted text end

Subd. 7.

Offenses; penalties; application of other laws.

Any owner or operator
of a motor vehicle who deleted text beginshalldeleted text end willfully deleted text begingive anydeleted text endnew text begin givesnew text end false information relative to the
new text begin wheelage new text endtax deleted text beginherein authorizeddeleted text end to the registrar deleted text beginof motor vehiclesdeleted text end or any deleted text beginmetropolitandeleted text end
county, or who deleted text beginshalldeleted text end willfully deleted text beginfaildeleted text endnew text begin failsnew text end or deleted text beginrefusedeleted text endnew text begin refuses new text end to furnish any such information,
deleted text begin shall bedeleted text endnew text begin isnew text end guilty of a misdemeanor. Except as otherwise deleted text beginhereindeleted text end providednew text begin in this sectionnew text end,deleted text begin
the
deleted text end collection and payment of a wheelage tax and all new text beginrelated new text endmatters deleted text beginrelating thereto shall
be
deleted text end new text beginare new text endsubject to deleted text beginall provisions of lawdeleted text endnew text begin lawsnew text end relating to collection and payment of motor
vehicle taxes so far as applicable.

Sec. 2.

Minnesota Statutes 2006, section 168.011, subdivision 6, is amended to read:


Subd. 6.

Tax.

"Tax" means the annual registration tax imposed on vehicles in lieu
of all other taxes, except wheelage taxes which may be imposed by any citynew text begin or countynew text end,
and gross earnings taxes paid by companies. The annual tax is both a property tax and a
highway use tax and shall be on the basis of the calendar year.

Sec. 3.

Minnesota Statutes 2006, section 168.013, subdivision 1, is amended to read:


Subdivision 1.

Imposition.

Motor vehicles, except as set forth in section 168.012,
using the public streets or highways in the state, and park trailers taxed under subdivision
1j, shall be taxed in lieu of all other taxes thereon, except wheelage taxes, deleted text beginso-called,deleted text end which
may be imposed by any city new text beginor county new text endas provided by law, and except gross earnings
taxes paid by companies subject or made subject thereto, and shall be privileged to
use the public streets and highways, on the basis and at the rate for each calendar year
as hereinafter provided.

ARTICLE 2

VEHICLE REGISTRATION TAX

Section 1.

Minnesota Statutes 2006, section 168.013, subdivision 1a, is amended to
read:


Subd. 1a.

Passenger automobile; hearse.

(a) On passenger automobiles as defined
in section 168.011, subdivision 7, and hearses, except as otherwise provided, the tax shall
be $10 plus an additional tax equal to 1.25 percent of the base value.

(b) Subject to the classification provisions herein, "base value" means the
manufacturer's suggested retail price of the vehicle including destination charge using list
price information published by the manufacturer or determined by the registrar if no
suggested retail price exists, and shall not include the cost of each accessory or item of
optional equipment separately added to the vehicle and the suggested retail price.

(c) If the manufacturer's list price information contains a single vehicle identification
number followed by various descriptions and suggested retail prices, the registrar shall
select from those listings only the lowest price for determining base value.

(d) If unable to determine the base value because the vehicle is specially constructed,
or for any other reason, the registrar may establish such value upon the cost price to the
purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales
or use tax or any local sales or other local tax.

(e) The registrar shall classify every vehicle in its proper base value class as follows:

FROM
TO
$ . 0
$ . 199.99
200
399.99

and thereafter a series of classes successively set in brackets having a spread of $200
consisting of such number of classes as will permit classification of all vehicles.

(f) The base value for purposes of this section shall be the middle point between
the extremes of its class.

(g) The registrar shall establish the base value, when new, of every passenger
automobile and hearse registered prior to the effective date of Extra Session Laws 1971,
chapter 31, using list price information published by the manufacturer or any nationally
recognized firm or association compiling such data for the automotive industry. If unable
to ascertain the base value of any registered vehicle in the foregoing manner, the registrar
may use any other available source or method. The registrar shall calculate tax using base
value information available to dealers and deputy registrars at the time the application for
registration is submitted. The tax on all previously registered vehicles shall be computed
upon the base value thus determined taking into account the depreciation provisions of
paragraph (h).

(h) The annual additional tax computed upon the base value as provided herein,
during the first deleted text beginand second yearsdeleted text endnew text begin yearnew text end of vehicle life shall be computed upon 100 percent
of the base value; new text beginfor the second year, 80 percent of such value; new text endfor the third deleted text beginand fourth
years
deleted text endnew text begin yearnew text end, deleted text begin90deleted text endnew text begin 70new text end percent of such value; new text beginfor the fourth year, 60 percent of such value; new text endfor
the fifth deleted text beginand sixth yearsdeleted text endnew text begin yearnew text end, deleted text begin75deleted text endnew text begin 50new text end percent of such value; new text beginfor the sixth year, 40 percent
of such value;
new text endfor the seventh year, deleted text begin60deleted text endnew text begin 35new text end percent of such value; for the eighth year, deleted text begin40deleted text end
new text begin 30 new text endpercent of such value; for the ninth year, deleted text begin30deleted text endnew text begin 20new text end percent of such value; for the tenth year,
ten percent of such value; for the 11th and each succeeding year, the sum of $25.

In no event shall the annual additional tax be less than $25. deleted text beginThe total tax under this
subdivision shall not exceed $189 for the first renewal period and shall not exceed $99
for subsequent renewal periods. The total tax under this subdivision on any vehicle filing
its initial registration in Minnesota in the second year of vehicle life shall not exceed
$189 and shall not exceed $99 for subsequent renewal periods. The total tax under
this subdivision on any vehicle filing its initial registration in Minnesota in the third or
subsequent year of vehicle life shall not exceed $99 and shall not exceed $99 in any
subsequent renewal period
deleted text endnew text begin The annual additional tax under this paragraph must not exceed
the annual additional tax that was previously paid or due on that vehicle
new text end.

deleted text begin (i) As used in this subdivision and section deleted text begin168.017deleted text end, the following terms have the
meanings given: "initial registration" means the 12 consecutive months calendar period
from the day of first registration of a vehicle in Minnesota; and "renewal periods" means
the 12 consecutive calendar months periods following the initial registration period.
deleted text end

Sec. 2.

Minnesota Statutes 2006, section 168.017, subdivision 3, is amended to read:


Subd. 3.

Exceptions.

(a) The registrar shall register all vehicles subject to
registration under the monthly series system for a period of 12 consecutive calendar
months, unless:

(1) the application is an original rather than renewal application; or

(2) the applicant is a licensed motor vehicle lessor under section 168.27, in which
case the applicant may apply for initial or renewed registration of a vehicle for a period
of four or more months, the month of expiration to be designated by the applicant at the
time of registration. However, to qualify for this exemption, the applicant must present
the application to the registrar at St. Paul, or at deputy registrar offices as the registrar
may designate.

(b) In any instance except that of a licensed motor vehicle lessor, the registrar shall
not approve registering the vehicle subject to the application for a period of less than three
months, except when the registrar determines that to do otherwise will help to equalize
the registration and renewal work load of the department.

new text begin (c) As used in this subdivision, the following terms have the meanings given:
new text end

new text begin (1) "initial registration" means the 12 consecutive calendar months period from the
day of first registration of a vehicle in Minnesota; and
new text end

new text begin (2) "renewal periods" means the 12 consecutive calendar months periods following
the initial registration period.
new text end

ARTICLE 3

MOTOR VEHICLE SALES TAX

Section 1.

Minnesota Statutes 2006, section 16A.88, is amended to read:


16A.88 TRANSIT deleted text beginFUNDSdeleted text endnew text begin FUNDnew text end.

Subdivision 1.

new text begin Transit fund. new text end

new text begin A transit fund is established within the state treasury.
The fund receives money distributed under section 297B.09, and other money as specified
by law. Money in the fund must be allocated to the greater Minnesota transit account
under subdivision 2 and the metropolitan area transit account under subdivision 3, and
must be used for public transit assistance purposes.
new text end

new text begin Subd. 2. new text end

Greater Minnesota transit deleted text beginfunddeleted text endnew text begin accountnew text end.

The greater Minnesota transit
deleted text begin funddeleted text endnew text begin account new text end is established within the deleted text beginstate treasurydeleted text endnew text begin transit fundnew text end. Money in the deleted text beginfunddeleted text endnew text begin
account
new text end is annually appropriated to the commissioner of transportation for assistance to
new text begin public new text endtransit systems outside the metropolitan area under section 174.24. deleted text beginBeginning in
fiscal year 2003,
deleted text end The commissioner may use up to $400,000 each year for administration
of the transit program. The commissioner shall use the deleted text beginfunddeleted text endnew text begin accountnew text end for transit operations
as provided in section 174.24 and related program administration.

Subd. deleted text begin2deleted text endnew text begin 3new text end.

Metropolitan area transit deleted text beginfunddeleted text endnew text begin accountnew text end.

The metropolitan area transit
deleted text begin funddeleted text endnew text begin accountnew text end is established within the deleted text beginstate treasurydeleted text endnew text begin transit fundnew text end. All money in the deleted text beginfunddeleted text endnew text begin
account
new text end is annually appropriated to the Metropolitan Council for the funding of new text beginpublic
new text endtransit systems within the metropolitan area under sections 473.384, 473.387, 473.388,
and 473.405 to 473.449.

deleted text begin Subd. 3. deleted text end

deleted text begin Metropolitan area transit appropriation account. deleted text end

deleted text begin The metropolitan
area transit appropriation account is established within the general fund. Money in the
account is to be used for the funding of transit systems in the metropolitan area, subject to
legislative appropriation.
deleted text end

new text begin Subd. 4. new text end

new text begin Metropolitan area transportation account. new text end

new text begin The metropolitan area
transportation account is established within the transit fund. All money in the account
is annually appropriated to the commissioner of finance, who shall allocate the money
as directed by resolution of the Metropolitan Transportation Area Joint Powers Board
under section 297A.992.
new text end

Sec. 2.

Minnesota Statutes 2006, section 174.24, subdivision 1, is amended to read:


Subdivision 1.

Establishment; purpose.

A public transit participation program is
established to carry out the objectives stated in section 174.21 by providing financial
assistance from the state, including the greater Minnesota transit deleted text beginfunddeleted text endnew text begin accountnew text end established
in section 16A.88, to eligible recipients outside of the metropolitan area.

Sec. 3.

Minnesota Statutes 2006, section 297B.09, subdivision 1, is amended to read:


Subdivision 1.

Deposit of revenues.

(a) Money collected and received under this
chapter must be deposited as provided in this subdivision.

deleted text begin (b) From July 1, 2002, to June 30, 2003, 32 percent of the money collected and
received must be deposited in the highway user tax distribution fund, 20.5 percent must be
deposited in the metropolitan area transit fund under section deleted text begin16A.88deleted text end, and 1.25 percent
must be deposited in the greater Minnesota transit fund under section deleted text begin16A.88deleted text end. The
remaining money must be deposited in the general fund.
deleted text end

deleted text begin (c) From July 1, 2003, to June 30, 2007, 30 percent of the money collected and
received must be deposited in the highway user tax distribution fund, 21.5 percent must be
deposited in the metropolitan area transit fund under section deleted text begin16A.88deleted text end, 1.43 percent must be
deposited in the greater Minnesota transit fund under section deleted text begin16A.88deleted text end, 0.65 percent must
be deposited in the county state-aid highway fund, and 0.17 percent must be deposited
in the municipal state-aid street fund. The remaining money must be deposited in the
general fund.
deleted text end

deleted text begin (d) On and after July 1, 2007, 32 percent of the money collected and received must
be deposited in the highway user tax distribution fund, 20.5 percent must be deposited
in the metropolitan area transit fund under section deleted text begin16A.88deleted text end, and 1.25 percent must be
deposited in the greater Minnesota transit fund under section deleted text begin16A.88deleted text end. The remaining
money must be deposited in the general fund.
deleted text end

new text begin (b) From July 1, 2007, to June 30, 2008, 38.25 percent must be deposited in the
highway user tax distribution fund, and 25.5 percent must be deposited in the transit fund
and allocated 22.25 percent to the metropolitan area transit account, and 3.25 percent to
the greater Minnesota transit account. The remaining money must be deposited in the
general fund.
new text end

new text begin (c) From July 1, 2008, to June 30, 2009, 44.25 percent must be deposited in the
highway user tax distribution fund, and 29.5 percent must be deposited in the transit fund
and allocated 25.75 percent to the metropolitan area transit account, and 3.75 percent to
the greater Minnesota transit account. The remaining money must be deposited in the
general fund.
new text end

new text begin (d) From July 1, 2009, to June 30, 2010, 50.25 percent must be deposited in the
highway user tax distribution fund, and 33.5 percent must be deposited in the transit fund
and allocated 29.25 percent to the metropolitan area transit account, and 4.25 percent to
the greater Minnesota transit account. The remaining money must be deposited in the
general fund.
new text end

new text begin (e) From July 1, 2010, to June 30, 2011, 56.25 percent must be deposited in the
highway user tax distribution fund, and 37.5 percent must be deposited in the transit fund
and allocated 32.75 percent to the metropolitan area transit account, and 4.75 percent to
the greater Minnesota transit account. The remaining money must be deposited in the
general fund.
new text end

new text begin (f) On and after July 1, 2011, 60 percent must be deposited in the highway user tax
distribution fund, and 40 percent must be deposited in the transit fund and allocated 35
percent to the metropolitan area transit account and five percent to the greater Minnesota
transit account.
new text end

ARTICLE 4

FUEL TAX

Section 1.

Minnesota Statutes 2006, section 296A.07, subdivision 3, is amended to
read:


Subd. 3.

Rate of tax.

The gasoline excise tax is imposed at the following rates:

(1) E85 is taxed at the rate of deleted text begin14.2deleted text endnew text begin 21.3new text end cents per gallon;

(2) M85 is taxed at the rate of deleted text begin11.4deleted text endnew text begin 17.1new text end cents per gallon; and

(3) all other gasoline is taxed at the rate of deleted text begin20deleted text endnew text begin 30new text end cents per gallon.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007, and applies to all
gasoline, undyed diesel fuel, and special fuel in distributor storage on July 1, 2007.
new text end

Sec. 2.

Minnesota Statutes 2006, section 296A.08, subdivision 2, is amended to read:


Subd. 2.

Rate of tax.

The special fuel excise tax is imposed at the following rates:

(a) Liquefied petroleum gas or propane is taxed at the rate of deleted text begin15deleted text endnew text begin 22.5new text end cents per gallon.

(b) Liquefied natural gas is taxed at the rate of deleted text begin12deleted text endnew text begin 18new text end cents per gallon.

(c) Compressed natural gas is taxed at the rate of deleted text begin$1.739deleted text end new text begin$2.609 new text endper thousand cubic
feet; or deleted text begin20deleted text endnew text begin 30new text end cents per gasoline equivalent, as defined by the National Conference on
Weights and Measures, which is 5.66 pounds of natural gas.

(d) All other special fuel is taxed at the same rate as the gasoline excise tax as
specified in section 296A.07, subdivision 2. The tax is payable in the form and manner
prescribed by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007, and applies to all
gasoline, undyed diesel fuel, and special fuel in distributor storage on July 1, 2007.
new text end

Sec. 3.

new text begin [296A.081] ANNUAL ADJUSTMENT.
new text end

new text begin (a) On April 1, 2009, and each April 1 thereafter, the commissioner of revenue
shall recompute and publish the rate of each fuel tax provided for in sections 296A.07,
subdivision 3, and 296A.08, subdivision 2. The new rate for each such tax must be
calculated by multiplying the rate in effect at the time of the calculation by an amount
obtained under paragraph (b). The new rate must be rounded to the nearest 0.1 cent and is
effective on June 1 of each year.
new text end

new text begin (b) Divide the annual average United States Consumer Price Index for all urban
consumers, United States city average, as determined by the United States Department of
Labor for the previous year by that annual average for the year before the previous year.
new text end

new text begin (c) By a majority vote, the legislature may suspend the annual adjustment for any
particular year or years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective April 1, 2009.
new text end

ARTICLE 5

COUNTY STATE-AID FUND DISTRIBUTION

Section 1.

Minnesota Statutes 2006, section 162.07, subdivision 1, is amended to read:


Subdivision 1.

deleted text beginFormuladeleted text endnew text begin Apportionment sum and excess sumnew text end.

deleted text beginAfter deducting for
administrative costs and for the disaster account and research account and state park roads
as heretofore provided, the remainder of
deleted text endnew text begin (a)new text end The total sum provided for in section 162.06,
subdivision 1
,deleted text begin shall bedeleted text endnew text begin isnew text end identified as the apportionment sum and new text begin the excess sum. new text enddeleted text beginshall be
apportioned by the commissioner to the several counties on the basis of the needs of the
counties as determined in accordance with the following formula:
deleted text end

deleted text begin (a) An amount equal to ten percent of the apportionment sum shall be apportioned
equally among the 87 counties.
deleted text end

deleted text begin (b) An amount equal to ten percent of the apportionment sum shall be apportioned
among the several counties so that each county shall receive of such amount the
percentage that its motor vehicle registration for the calendar year preceding the one last
past, determined by residence of registrants, bears to the total statewide motor vehicle
registration.
deleted text end

deleted text begin (c) An amount equal to 30 percent of the apportionment sum shall be apportioned
among the several counties so that each county shall receive of such amount the percentage
that its total lane-miles of approved county state-aid highways bears to the total lane-miles
of approved statewide county state-aid highways. In 1997 and subsequent years no county
may receive, as a result of an apportionment under this clause based on lane-miles rather
than miles of approved county state-aid highways, an apportionment that is less than its
apportionment in 1996.
deleted text end

deleted text begin (d) An amount equal to 50 percent of the apportionment sum shall be apportioned
among the several counties so that each county shall receive of such amount the percentage
that its money needs bears to the sum of the money needs of all of the individual counties;
provided, that the percentage of such amount that each county is to receive shall be
adjusted so that each county shall receive in 1958 a total apportionment at least ten
percent greater than its total 1956 apportionments from the state road and bridge fund;
and provided further that those counties whose money needs are thus adjusted shall
never receive a percentage of the apportionment sum less than the percentage that such
county received in 1958.
deleted text end

new text begin (b) The excess sum is the sum of:
new text end

new text begin (1) revenue attributed to that portion of the gasoline excise tax rate in excess of 20
cents per gallon, and to that portion of the excise tax rate for E85, M85, and special fuels
in excess of the energy equivalent of a gasoline tax rate of 20 cents per gallon;
new text end

new text begin (2) revenue attributed to a change in the passenger vehicle registration tax under
section 168.013, imposed on or after July 1, 2007, that exceeds the amount collected in
fiscal year 2007 multiplied by the annual average United States Consumer Price Index
for all urban consumers, United States city average, as determined by the United States
Department of Labor for the previous year, divided by the annual average for calendar
year 2006; and
new text end

new text begin (3) revenue to the county state-aid highway fund attributable to the motor vehicle
sales tax in excess of fiscal year 2007 revenue.
new text end

new text begin (c) The apportionment sum is calculated by subtracting the excess sum from the
remainder of the total sum.
new text end

Sec. 2.

Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Apportionment sum. new text end

new text begin The commissioner shall reduce the apportionment
sum by a proportionate share of the deductions for administrative costs, disaster account,
research account, and state park road account, and apportion the remainder among the
several counties on the basis of the needs of the counties as follows:
new text end

new text begin (1) An amount equal to ten percent shall be apportioned equally among the 87
counties.
new text end

new text begin (2) An amount equal to ten percent shall be apportioned among the several counties
so that each county shall receive of such amount the percentage that its motor vehicle
registration for the calendar year preceding the one last past, determined by residence of
registrants, bears to the total statewide motor vehicle registration.
new text end

new text begin (3) An amount equal to 30 percent shall be apportioned among the several counties
so that each county shall receive of such amount the percentage that its total lane-miles of
approved county state-aid highways bears to the total lane-miles of approved statewide
county state-aid highways. In 1997 and subsequent years no county may receive, as a result
of an apportionment under this clause based on lane-miles rather than miles of approved
county state-aid highways, an apportionment that is less than its apportionment in 1996.
new text end

new text begin (4) An amount equal to 50 percent shall be apportioned among the several counties
so that each county shall receive of such amount the percentage that its money needs bears
to the sum of the money needs of all of the individual counties.
new text end

Sec. 3.

Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision
to read:


new text begin Subd. 1b. new text end

new text begin Excess sum. new text end

new text begin The commissioner shall reduce the excess sum by a
proportionate share of the deductions for administrative costs, disaster account, research
account, and state park road account, and apportion the remainder among the several
counties on the basis of the needs of the counties as follows:
new text end

new text begin (1) An amount equal to 40 percent must be apportioned among the several counties
so that each county receives of that amount the percentage that its motor vehicle
registration for the calendar year preceding the one last past, determined by residence of
registrants, bears to the total statewide motor vehicle registration.
new text end

new text begin (2) An amount equal to 60 percent must be apportioned among the several counties
so that each county receives of that amount the percentage that its money needs bears to
the sum of the money needs of all of the individual counties.
new text end

Sec. 4.

Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin Construction apportionment. new text end

new text begin (a) For purposes of this subdivision:
new text end

new text begin (1) "construction apportionment" means money allocated to counties under this
section and not set aside for maintenance under section 162.08, subdivision 9; and
new text end

new text begin (2) "money needs percentage" means the construction apportionment of a county
divided by the approved money needs of that county.
new text end

new text begin (b) No county may receive a construction apportionment in any year that is less
than that county's average annual construction apportionment over calendar years 2003
through 2007.
new text end

new text begin (c) After calculating the apportionment for each county each year under this section,
but before distribution of money to counties, the commissioner shall:
new text end

new text begin (1) determine the statewide average money needs percentage for all counties;
new text end

new text begin (2) rank all counties according to the extent to which each county is above or below
the statewide average money needs percentage;
new text end

new text begin (3) identify those counties that are more than ten percent below the statewide
average money needs percentage; and
new text end

new text begin (4) to the extent permitted by compliance with paragraph (b), allot to each county
identified under clause (3) an amount that, if added to the county's construction allocation,
would be sufficient to bring that county up to at least 90 percent of the statewide average
money needs percentage.
new text end

ARTICLE 6

SALES TAX ON MOTOR VEHICLE LEASES

Section 1.

Minnesota Statutes 2006, section 297A.815, is amended by adding a
subdivision to read:


new text begin Subd. 3. new text end

new text begin Deposit of revenues. new text end

new text begin Notwithstanding any law to the contrary, money
collected and received under this section must be deposited as follows:
new text end

new text begin (1) From July 1, 2007, to June 30, 2008, 38.25 percent must be deposited in the local
road improvement fund and credited to the trunk highway corridor projects account,
and 25.5 percent must be deposited in the transit fund and allocated 22.25 percent to
the metropolitan area transit account, and 3.25 percent to the greater Minnesota transit
account. The remaining money must be deposited in the general fund.
new text end

new text begin (2) From July 1, 2008, to June 30, 2009, 44.25 percent must be deposited in the local
road improvement fund and credited to the trunk highway corridor projects account,
and 29.5 percent must be deposited in the transit fund and allocated 25.75 percent to
the metropolitan area transit account, and 3.75 percent to the greater Minnesota transit
account. The remaining money must be deposited in the general fund.
new text end

new text begin (3) From July 1, 2009, to June 30, 2010, 50.25 percent must be deposited in the local
road improvement fund and credited to the trunk highway corridor projects account,
and 33.5 percent must be deposited in the transit fund and allocated 29.25 percent to
the metropolitan area transit account, and 4.25 percent to the greater Minnesota transit
account. The remaining money must be deposited in the general fund.
new text end

new text begin (4) From July 1, 2010, to June 30, 2011, 56.25 percent must be deposited in the local
road improvement fund and credited to the trunk highway corridor projects account,
and 37.5 percent must be deposited in the transit fund and allocated 32.75 percent to
the metropolitan area transit account, and 4.75 percent to the greater Minnesota transit
account. The remaining money must be deposited in the general fund.
new text end

new text begin (5) On and after July 1, 2011, 60 percent must be deposited in the local road
improvement fund and credited to the trunk highway corridor projects account, and 40
percent must be deposited in the transit fund and allocated five percent to the greater
Minnesota transit account, and 35 percent to the metropolitan area transit account.
new text end

Sec. 2.

Minnesota Statutes 2006, section 297A.815, is amended by adding a
subdivision to read:


new text begin Subd. 4. new text end

new text begin Reporting of tax proceeds. new text end

new text begin A lessor must report taxes collected under
this section separately from any other taxes collected and remitted under this chapter or
chapter 297B.
new text end

Sec. 3.

Minnesota Statutes 2006, 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 finance 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) 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.

(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and
for fiscal year 2004 and thereafter, 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.

(f) The revenue dedicated under paragraph (e) 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 (e) 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 (e) must be allocated for field operations.

new text begin (g) The revenues, including interest and penalties, collected under section 297A.815
must be deposited as provided in section 297A.815, subdivision 3.
new text end

Sec. 4. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective beginning with revenues collected and remitted
beginning July 1, 2007.
new text end

ARTICLE 7

CAPITAL IMPROVEMENT APPROPRIATIONS

Section 1. new text beginCAPITAL IMPROVEMENT APPROPRIATIONS.
new text end

new text begin The sums shown in the column under "APPROPRIATIONS" are appropriated from
the bond proceeds fund, or another named fund, to the state agencies or officials indicated,
to be spent for public purposes. Appropriations of bond proceeds must be spent as
authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire
and better public land and buildings and other public improvements of the capital nature, or
as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or
article XIV. Unless otherwise specified, the appropriations in this article are available until
the project is completed or abandoned subject to Minnesota Statutes, section 16A.642.
new text end

new text begin SUMMARY
new text end
new text begin TRANSPORTATION
new text end
new text begin $
new text end
new text begin 122,500,000
new text end
new text begin METROPOLITAN COUNCIL
new text end
new text begin 54,000,000
new text end
new text begin BOND SALE EXPENSES
new text end
new text begin 1,756,000
new text end
new text begin TOTAL
new text end
new text begin $
new text end
new text begin 178,265,000
new text end
new text begin APPROPRIATIONS
new text end

Sec. 2. new text beginTRANSPORTATION
new text end

new text begin Subdivision 1. new text end

new text begin To the commissioner of
transportation for the purposes specified in
this section
new text end

new text begin $
new text end
new text begin 115,733,000
new text end
new text begin Midwest Regional Rail Initiative
new text end
new text begin 10,000,000
new text end

new text begin This appropriation is from the bond proceeds
account in the state transportation fund as
provided in Minnesota Statutes, section
174.50, for preliminary engineering,
environmental studies, and final design of
the Midwest Regional Rail Initiative within
Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Local Bridge Replacement and
Rehabilitation
new text end

new text begin 50,000,000
new text end

new text begin This appropriation is from the bond proceeds
account in the state transportation fund as
provided in Minnesota Statutes, section
174.50, to match federal money and to
replace or rehabilitate local deficient bridges.
new text end

new text begin Political subdivisions may use grants made
under this section to construct or reconstruct
bridges, including:
new text end

new text begin (1) matching federal-aid grants to construct
or reconstruct key bridges;
new text end

new text begin (2) paying the costs of preliminary
engineering and environmental studies
authorized under Minnesota Statutes, section
174.50, subdivision 6a;
new text end

new text begin (3) paying the costs to abandon an existing
bridge that is deficient and in need of
replacement, but where no replacement will
be made; and
new text end

new text begin (4) paying the costs to construct a road
or street to facilitate the abandonment
of an existing bridge determined by
the commissioner to be deficient, if the
commissioner determines that construction
of the road or street is more cost efficient
than the replacement of the existing bridge.
new text end

new text begin Subd. 3. new text end

new text begin Local Road Improvement Program
new text end

new text begin 50,000,000
new text end

new text begin This appropriation is from the bond proceeds
account in the state transportation fund as
provided in Minnesota Statutes, section
174.50.
new text end

new text begin Subd. 4. new text end

new text begin Port Development Assistance
new text end

new text begin 2,000,000
new text end

new text begin This appropriation is from the bond proceeds
account in the state transportation fund as
provided in Minnesota Statutes, section
174.50, for grants under Minnesota Statutes,
chapter 457A. Any improvements made with
the proceeds of these grants must be publicly
owned.
new text end

new text begin Subd. 5. new text end

new text begin Greater Minnesota Transit
new text end

new text begin 10,500,000
new text end

new text begin This appropriation is from the bond proceeds
account in the state transportation fund as
provided in Minnesota Statutes, section
174.50, for capital assistance for greater
Minnesota transit systems to be used for
transit capital facilities under Minnesota
Statutes, section 174.24, subdivision 3c.
Money from this appropriation may be used
to pay up to 80 percent of the nonfederal
share of these facilities.
new text end

Sec. 3. new text beginMETROPOLITAN COUNCIL
new text end

new text begin Subdivision 1. new text end

new text begin To the Metropolitan Council for
the purposes specified in this section
new text end

new text begin $
new text end
new text begin 54,000,000
new text end
new text begin Marked Interstate Highway 35W Corridor
new text end
new text begin 2,000,000
new text end

new text begin For a study of the feasibility of the use of
light rail transit in the marked Interstate
Highway 35W corridor between Minneapolis
and Lakeville.
new text end

new text begin Subd. 2. new text end

new text begin Central Corridor Transit Way
new text end

new text begin 40,000,000
new text end

new text begin For environmental studies, preliminary
engineering, and design of the central
corridor transit way between downtown
Minneapolis and downtown St. Paul.
new text end

new text begin Subd. 3. new text end

new text begin Union Depot
new text end

new text begin 12,000,000
new text end

new text begin For a grant to the Ramsey County Regional
Railroad Authority to acquire land and
structures, to renovate structures, and for
design, engineering, and environmental
work to revitalize Union Depot for use as a
multimodal transit center in St. Paul.
new text end

Sec. 4. new text beginBOND SALE EXPENSES
new text end

new text begin 1,765,000
new text end

new text begin To the commissioner of finance for bond sale
expenses under Minnesota Statutes, section
16A.641, subdivision 8.
new text end

Sec. 5. new text beginBOND SALE AUTHORIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Bond proceeds fund. new text end

new text begin To provide the money appropriated in this
article from the bond proceeds fund, the commissioner of finance shall sell and issue
bonds of the state in an amount up to $123,725,000 in the manner, upon the terms, and
with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
Minnesota Constitution, article XI, sections 4 to 7.
new text end

new text begin Subd. 2. new text end

new text begin Transportation fund bond proceeds account. new text end

new text begin To provide the money
appropriated in this article from the state transportation fund, the commissioner of finance
shall sell and issue bonds of the state in an amount up to $54,540,000 in the manner, upon
the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to
16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of
the bonds, except accrued interest and any premium received on the sale of the bonds,
must be credited to a bond proceeds account in the state transportation fund.
new text end

Sec. 6.

Minnesota Statutes 2006, section 473.39, is amended by adding a subdivision
to read:


new text begin Subd. 1m. new text end

new text begin Obligations. new text end

new text begin After July 1, 2007, in addition to the authority in
subdivisions 1a, 1b, 1c, 1d, 1e, 1g, 1h, 1i, 1j, 1k, and 1l, the council may issue certificates
of indebtedness, bonds, or other obligations under this section in an amount not exceeding
$66,000,000 for capital expenditures as prescribed in the council's regional transit master
plan and transit capital improvement program, and for related costs, including the costs of
issuance and sale of the obligations.
new text end

ARTICLE 8

LOCAL TRANSPORTATION SALES TAX

Section 1.

Minnesota Statutes 2006, section 161.04, is amended by adding a
subdivision to read:


new text begin Subd. 5. new text end

new text begin Highway spending in metropolitan transportation area. new text end

new text begin In any year
during which taxes authorized in section 297A.992, subdivision 3, are imposed, and
exclusive of the expenditure of these revenues, the percentage of total trunk highway fund
expenditures attributable to projects in the metropolitan transportation area, within the
meaning of section 297A.992, subdivision 1, may not vary more than two percentage
points from the average of the previous five years of trunk highway fund metropolitan
transportation area expenditures.
new text end

Sec. 2.

new text begin [297A.992] LOCAL TRANSPORTATION SALES AND EXCISE TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section and section 161.04,
subdivision 5:
new text end

new text begin (1) "Metropolitan transportation area" means the counties of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington, and any adjacent county that is declared by
resolution of its county board to be a part of the metropolitan transportation area.
new text end

new text begin (2) "Joint powers board" means the Metropolitan Transportation Area Joint Powers
Board.
new text end

new text begin Subd. 2. new text end

new text begin Authorization; rates. new text end

new text begin (a) Notwithstanding sections 297A.99, subdivisions
1, 2, 3, 5, and 13; 477A.016; or any other law, the joint powers board may impose a
transportation sales and use tax within the metropolitan transit area, at a rate of one-half
of one percent on retail sales and uses taxable under this chapter, and may impose an
excise tax on the sale of new motor vehicles, at the rate of $20 per vehicle, occurring
within the jurisdiction of the taxing authority, to fund transportation improvements, as
provided in this section.
new text end

new text begin (b) The tax imposed under this section is not included in determining if the total tax
on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
12, section 87, or in determining a tax that may be imposed under any other limitations.
new text end

new text begin Subd. 3. new text end

new text begin Deposit of revenues. new text end

new text begin (a) After the deductions allowed in section 297A.99,
subdivision 11, the commissioner of revenue shall deposit all revenue from taxes imposed
under this section in the transit fund for credit to the metropolitan area transportation
account. Money in the account is appropriated to the commissioner of finance who shall
allocate money in the account as directed by resolution of the joint powers board under
paragraph (c).
new text end

new text begin (b) Before imposing the tax, counties in the metropolitan transportation area shall
enter into a joint powers agreement to create the joint powers board to exercise the powers
provided in this section. The joint powers board must consist of one county commissioner
to represent each county in the metropolitan transportation area. The joint powers board
has the powers and duties provided in this section and in section 471.59, except that the
joint powers board may not issue bonds.
new text end

new text begin (c) By May 1 of each year, the joint powers board shall, by resolution, direct the
commissioner of finance to allocate revenue in the metropolitan transportation area
account for the next fiscal year. The resolution must direct the commissioner to allocate
funds as follows:
new text end

new text begin (1) 50 percent to be allocated among:
new text end

new text begin (i) the commissioner of transportation for implementation of the commissioner's
greater Minnesota transit plan in counties in the metropolitan transportation area that are
directly served by greater Minnesota transit;
new text end

new text begin (ii) the Metropolitan Council for implementation of the public transit components of
the council's 2030 transportation policy plan, and for other public transit operations and
capital improvements provided or assisted by the council in counties in the metropolitan
transportation area; and
new text end

new text begin (iii) counties in the metropolitan transportation area for operation of and capital
assistance to public transit systems that the county, or one or more cities in the county,
owns, operates, or contracts for; and
new text end

new text begin (2) 50 percent to be allocated among:
new text end

new text begin (i) the commissioner of transportation for metropolitan transportation area highway
projects included in the commissioner's current ten-year highway work plan; and
new text end

new text begin (ii) counties in the metropolitan transportation area for construction, maintenance,
and improvement of local roads.
new text end

new text begin Subd. 4. new text end

new text begin Tax in counties outside metropolitan transportation area.
new text end

new text begin Notwithstanding sections 297A.99, subdivisions 1, 2, 3, 5, and 13; 477A.016; or any other
law, the board of a county outside the metropolitan transportation area, or more than one
county acting under a joint powers agreement, may impose, either or both, a transportation
sales tax at a rate of one-half of one percent on retail sales and uses taxable under this
chapter and a motor vehicle excise tax on the sale of new motor vehicles at the rate of $20
per vehicle, occurring within the jurisdiction of the taxing authority subject to approval by
the voters of the county or counties at a general election. The proceeds of the tax must be
dedicated exclusively to payment of the cost of a specific transportation project, which is
designated at least 90 days before the referendum on imposition of the tax is conducted.
The tax must terminate after the improvement has been completed.
new text end

new text begin Subd. 5. new text end

new text begin Administration, collection, enforcement. new text end

new text begin The administration, collection,
and enforcement provisions in section 297A.99, subdivisions 4 and 6 to 12, apply to all
taxes imposed under this section.
new text end

Sec. 3. new text beginREPORT.
new text end

new text begin In each year during the period of imposition of the taxes authorized in Minnesota
Statutes, section 297A.992, subdivision 3, the commissioner of transportation and the
Metropolitan Council shall report by February 1 to the house of representatives and senate
committees having jurisdiction over transportation policy and finance concerning the
revenues received from the metropolitan transportation area sales tax and the expenditures
of that money.
new text end

Sec. 4. new text beginEFFECTIVE DATE.
new text end

new text begin This article is effective for sales made on and after January 1, 2008.
new text end

ARTICLE 9

ROAD USER FEE TASK FORCE

Section 1. new text beginROAD USER FEE TASK FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Creation and purpose. new text end

new text begin A Road User Fee Task Force is established
to study the future of highway funding and alternatives to existing highway user tax
mechanisms.
new text end

new text begin Subd. 2. new text end

new text begin Composition. new text end

new text begin (a) The Road User Fee Task Force is composed of:
new text end

new text begin (1) the commissioner of transportation or the commissioner's designee;
new text end

new text begin (2) the commissioner of public safety or the commissioner's designee;
new text end

new text begin (3) the commissioner of revenue or the commissioner's designee;
new text end

new text begin (4) six citizen members appointed by the governor, who must include:
new text end

new text begin (i) a representative of the motor carrier industry;
new text end

new text begin (ii) a representative of a transportation organization with both public and private
members;
new text end

new text begin (iii) a representative of an association of high-technology companies;
new text end

new text begin (iv) a representative of the University of Minnesota Center for Transportation
Studies; and
new text end

new text begin (v) two additional members;
new text end

new text begin (5) an elected city official appointed by the governor;
new text end

new text begin (6) a county board member appointed by the governor;
new text end

new text begin (7) an elected township officer appointed by the governor;
new text end

new text begin (8) three senators appointed by the Subcommittee on Committees of the Committee
on Rules and Administration, of whom one must be the chair of the senate committee
having jurisdiction over transportation policy and one of whom must be a member of
the minority caucus; and
new text end

new text begin (9) three members of the house of representatives appointed by the speaker, of whom
one must be the chair of the house committee having jurisdiction over transportation
policy and one of whom must be a member of the minority caucus.
new text end

new text begin (b) Removal of task force members is as provided under Minnesota Statutes, section
15.059, subdivision 4. The task force shall elect a chair from among its members.
new text end

new text begin (c) Members of the task force shall receive compensation in accordance with
Minnesota Statutes, section 15.059, subdivision 3.
new text end

new text begin (d) The Department of Transportation shall provide staff, administrative support,
and funding to the task force.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin (a) The task force shall study:
new text end

new text begin (1) the adequacy of existing highway user tax mechanisms to fund present and
future highway needs; and
new text end

new text begin (2) alternative highway user tax systems and mechanisms that tie highway user
collections directly to road usage, including:
new text end

new text begin (i) present and future technology that would be used by such alternative systems,
including:
new text end

new text begin (A) vehicle identification capability;
new text end

new text begin (B) ability of such systems to collect and report number of miles traveled by each
vehicle and collect taxes or fees on the basis of such information; and
new text end

new text begin (C) suitability of such systems for one or more pilot projects;
new text end

new text begin (ii) revenue potential of such systems compared to the existing tax system;
new text end

new text begin (iii) public acceptance of such systems;
new text end

new text begin (iv) costs of implementation and administration of such systems;
new text end

new text begin (v) potential for tax evasion under such systems;
new text end

new text begin (vi) issues of tax equity; and
new text end

new text begin (vii) compatibility of such systems with tax systems in other states.
new text end

new text begin (b) The task force shall review available literature and other research as part of its
study. Task force meetings must be open to the public.
new text end

new text begin Subd. 4. new text end

new text begin Pilot project. new text end

new text begin By January 15, 2008, the commissioner shall recommend to
the task force a pilot program to test mileage-based alternatives to the current system of
taxing highway use through motor vehicle fuel taxes. The task force shall gather public
comment and make recommendations to the commissioner on the design of the pilot
program and evaluation criteria.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin By January 15, 2009, the task force shall provide a final
report to the chairs of the senate and house of representatives committees with
jurisdiction over transportation policy and finance regarding its findings, conclusions, and
recommendations.
new text end

ARTICLE 10

APPROPRIATIONS

Section 1. new text beginMETROPOLITAN COUNCIL BUS TRANSIT.
new text end

new text begin $138,453,000 in fiscal year 2008 and $83,453,000 in fiscal year 2009 are
appropriated from the general fund to the Metropolitan Council transit for bus system
operations. Of the fiscal year 2008 appropriation, $55,000,000 is a onetime appropriation
and does not add to the Metropolitan Council's budget base. The unencumbered balance
in the first year does not cancel but is available for the second year.
new text end

Sec. 2. new text beginGREATER MINNESOTA TRANSIT.
new text end

new text begin $27,510,000 in fiscal year 2008 and $20,510,000 in fiscal year 2009 are appropriated
from the general fund to the commissioner of transportation for greater Minnesota transit.
Of the fiscal year 2008 appropriation, $7,000,000 is a onetime appropriation and does not
add to the Department of Transportation' s budget base. The unencumbered balance in the
first year does not cancel but is available for the second year.
new text end

Sec. 3. new text beginLOCAL ROAD IMPROVEMENT.
new text end

new text begin $10,000,000 in fiscal year 2008 is transferred from the general fund to the local road
improvement fund and credited to the trunk highway corridor projects account.
new text end

Sec. 4. new text beginHIGHWAY USER.
new text end

new text begin $328,000,000 in fiscal year 2008 is appropriated to the commissioner of finance for
transfer from the general fund to the highway user tax distribution fund.
new text end

ARTICLE 11

TRUNK HIGHWAY BONDING

Section 1. new text beginTRANSPORTATION APPROPRIATIONS.
new text end

new text begin $100,000,000 is appropriated from the bond proceeds account in the trunk highway
fund to the commissioner of transportation in each of fiscal years 2008 through 2017 for
trunk highway improvements. No more than $15,000,000 of each year's appropriation
may be used by the commissioner for program delivery.
new text end

Sec. 2. new text beginFINANCE APPROPRIATION.
new text end

new text begin $1,000,000 is appropriated from the bond proceeds account in the trunk highway
fund to the commissioner of finance in each of fiscal years 2008 through 2017 for bond
sale expenses under Minnesota Statutes, sections 16A.641, subdivision 8, and 167.50,
subdivision 4.
new text end

Sec. 3. new text beginBOND SALE AUTHORIZATION.
new text end

new text begin To provide the money appropriated in this article from the bond proceeds account
in the trunk highway fund, the commissioner of finance shall sell and issue bonds of the
state in an amount up to $1,100,000,000 in the manner, upon the terms, and with the
effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota
Constitution, article XIV, section 11, at the times and in the amounts requested by the
commissioner of transportation. The proceeds of the bonds, except accrued interest and
any premium received from the sale of the bonds, must be deposited in the bond proceeds
account in the trunk highway fund.
new text end