SF 163

as introduced - 91st Legislature (2019 - 2020) Posted on 01/17/2019 01:37pm

A bill for an act
relating to transportation; increasing transit ridership; requiring Metropolitan
Council and greater Minnesota transit systems to reduce transit fares to 25 cents;
appropriating money.

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

Section 1. new text begin LEGISLATIVE FINDINGS AND PURPOSE.
new text end

new text begin (a) The legislature finds it is in the public interest to address traffic congestion and reduce
harmful vehicle emissions by increasing transit ridership. Research has shown that decreasing
transit fares increases ridership and that increasing transit fares decreases ridership. Increasing
transit ridership through fare reduction is likely the most cost-effective means to address
overall traffic congestion in the metropolitan area and to address transportation needs for
people in cities throughout Minnesota.
new text end

new text begin (b) Passenger fares currently cover less than one-fourth of total transit costs.
Consequently, deep fare reductions have a relatively low impact on overall costs and the
resulting ridership increase significantly reduces the public subsidy per passenger.
new text end

new text begin (c) The significant ridership increase resulting from uniform 25-cent fares would likely
lead to more frequent service and the addition of transit routes, thereby making transit a
viable option for an increased number of people and further increasing ridership.
new text end

new text begin (d) Dramatically reducing transit fares uses market incentives to add ridership and
increase the efficiency and cost-effectiveness of Minnesota's overall transportation system.
A significant increase in transit ridership would reduce traffic congestion at a lower cost
than other transportation improvements while saving money for many low-income riders.
new text end

Sec. 2. new text begin REGULAR ROUTE TRANSIT FARES.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 473.408, the Metropolitan Council must
establish and enforce a fare of 25 cents for regular route bus and light rail transit in the
metropolitan area. The council must not increase the fare without legislative approval.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 174.24, the commissioner of
transportation shall require each greater Minnesota urbanized area service system that
receives financial assistance under a public transit participation program to establish and
enforce a fare of 25 cents for their transit system rides. Fares set under this paragraph must
not be increased without legislative approval.
new text end

Sec. 3. new text begin APPROPRIATION; METROPOLITAN COUNCIL.
new text end

new text begin (a) $....... in fiscal year 2020 and $....... in fiscal year 2021 are appropriated from the
general fund to the Metropolitan Council for metropolitan transit to replace revenue lost by
lower fares.
new text end

new text begin (b) $....... in fiscal year 2020 and $....... in fiscal year 2021 are appropriated from the
general fund to the Metropolitan Council to cover incremental costs of providing transit
service to additional transit riders resulting from lower fares.
new text end

Sec. 4. new text begin APPROPRIATION; DEPARTMENT OF TRANSPORTATION.
new text end

new text begin (a) $....... in fiscal year 2020 and $....... in fiscal year 2021 are appropriated from the
general fund to the commissioner of transportation to provide assistance to greater Minnesota
transit systems described in section 2, paragraph (b), to replace revenues lost by lower fares.
new text end

new text begin (b) $....... in fiscal year 2020 and $....... in fiscal year 2021 are appropriated from the
general fund to the commissioner of transportation to provide assistance to greater Minnesota
transit systems described in section 2, paragraph (b), to cover incremental costs of providing
service to additional transit riders resulting from lower fares.
new text end

new text begin (c) The appropriations in this section are in addition to assistance provided by, and not
subject to the limitations of, the public transit participation program.
new text end