Minnesota Legislature
HF 1638
as introduced - 92nd Legislature (2021 - 2022) Posted on 04/06/2021 12:56pm
Bill Text Versions
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| Introduction | Posted on 02/25/2021 |
Current Version - as introduced
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A bill for an act
relating to railroads; modifying passenger and freight rail powers and funding;
allocating certain revenue related to property taxes; making technical changes;
amending Minnesota Statutes 2020, sections 174.632, subdivision 2; 174.636,
subdivision 1, by adding a subdivision; proposing coding for new law in Minnesota
Statutes, chapter 174; repealing Minnesota Statutes 2020, section 174.634.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 174.632, subdivision 2, is amended to read:
Subd. 2.
Responsibilities.
(a) The planning, design, development, construction, operation,
and maintenance of passenger rail track, facilities, and services are governmental functions,
serve a public purpose, and are a matter of public necessity.
(b) The commissioner is responsible for all aspects of planning, designing, developing,
constructing, equipping, operating, and maintaining passenger rail, including system planning,
alternatives analysis, environmental studies, preliminary engineering, final design,
construction, negotiating with railroads, and developing financial and operating plans.
deleted text begin
(c) The commissioner may enter into a memorandum of understanding or agreement
with a public or private entity, including Amtrak, a regional railroad authority, a joint powers
board, and a railroad, to carry out these activities.
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new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2020, section 174.636, subdivision 1, is amended to read:
Subdivision 1.
Powers.
new text begin (a)new text end The commissioner has all powers necessary to carry out the
duties specified in section 174.632. In the exercise of those powers, the commissioner may:
(1) acquire by purchase, gift, or by eminent domain proceedings as provided by law, all
land and property necessary to preserve future passenger rail corridors or to construct,
maintain, and improve passenger rail corridors;
(2) let all necessary contracts as provided by law; deleted text begin and
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(3) make agreements deleted text begin withdeleted text end new text begin , enter into memorandums of understanding,new text end and cooperate
with any public or private entity, including Amtrak,new text begin a regional railroad authority, a joint
powers board, and a railroad,new text end to carry out statutory duties related to passenger raildeleted text begin .deleted text end new text begin ;
new text end
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(4) enter into agreements, including repayment agreements, with governmental or
nongovernmental entities, including private and nonprofit entities, to finance or invest in
passenger rail projects subject to (i) the availability of state money or other dedicated revenue
or resources, and (ii) approval of the commissioner of management and budget; and
new text end
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(5) apply for funding from federal, state, regional, local, and private sources to carry out
the commissioner's duties under section 174.632.
new text end
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(b) Section 174.88, subdivision 2, does not apply to the commissioner's performance of
duties and exercise of powers under sections 174.632 to 174.636.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2020, section 174.636, is amended by adding a subdivision to
read:
new text begin Subd. 5. new text end
new text begin Local units of government. new text end
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Upon approval by the commissioner, a county or
regional railroad authority may plan and apply for funding for a passenger rail project that
is consistent with the statewide freight and passenger rail plan under section 174.03,
subdivision 1b.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
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[174.638] PASSENGER AND FREIGHT RAIL; FUNDING.
new text end
new text begin Subdivision 1. new text end
new text begin State railroad account. new text end
new text begin
(a) A state railroad account is established in the
Minnesota state transportation fund established under section 174.50. The account consists
of transfers under subdivision 5 and funds donated, allotted, transferred, or otherwise
provided to the account.
new text end
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(b) Money in the account may be expended only as appropriated by law. The
appropriation under section 174.50, subdivision 3, does not include funds in the state railroad
account.
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(c) The state railroad account must not contain bond proceeds provided to the state
transportation fund under section 174.50.
new text end
new text begin Subd. 2. new text end
new text begin Biennial budget; reporting, consultation. new text end
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(a) As part of the revenues and
expenditures projections required under section 16A.04, the commissioner of management
and budget must report revenues and balances in the state railroad account.
new text end
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(b) When preparing the biennial budget request as required under section 16A.10, the
commissioner of transportation must consult with metropolitan planning organizations,
regional railroad authorities, railroad companies, representatives of railroad labor
organizations, and other interested rail stakeholders to develop the request for expenditures
from the state railroad account.
new text end
new text begin Subd. 3. new text end
new text begin Use of funds. new text end
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Funds in the state railroad account must be used only for:
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(1) salaries and operating expenses of Department of Transportation personnel to carry
out freight rail and passenger rail functions;
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(2) expenses of consultants and contractors selected by the commissioner of transportation
to assist the execution of freight rail and passenger rail functions;
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(3) expenses for equipment, land, property, infrastructure, and all improvements necessary
for freight rail and passenger rail projects, including planning, alternatives analysis,
environmental analysis, design, and engineering;
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(4) matching federal funds received for freight rail and passenger rail activities; and
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(5) intercity passenger rail service operating expenses not covered by passenger revenues.
new text end
new text begin Subd. 4. new text end
new text begin State railroad property tax; certification of estimate. new text end
new text begin
On or before June 30
of each year, the commissioner of revenue must:
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(1) certify a state railroad property tax estimate, calculated as an estimate of the amount
of state general property tax authorized in section 275.025 collected on all railroad Class
III operating property in the state for the previous year; and
new text end
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(2) report the state railroad property tax estimate to the commissioners of management
and budget and transportation.
new text end
new text begin Subd. 5. new text end
new text begin State railroad property tax; transfer. new text end
new text begin
The commissioner of management and
budget must annually transfer from the general fund to the state railroad account amounts,
based on the most recent state railroad property tax estimate under subdivision 4, as follows:
new text end
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(1) by July 31, 2021, 15 percent of the state railroad property tax estimate;
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(2) by July 31, 2022, 25 percent of the state railroad property tax estimate;
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(3) by July 31, 2023, 30 percent of the state railroad property tax estimate;
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(4) by July 31, 2024, 45 percent of the state railroad property tax estimate;
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(5) by July 31, 2025, 60 percent of the state railroad property tax estimate;
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(6) by July 31, 2026, 85 percent of the state railroad property tax estimate; and
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(7) by July 31, 2027, and each July 31 thereafter, 100 percent of the state railroad property
tax estimate.
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new text begin EFFECTIVE DATE. new text end
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This section is effective July 1, 2021.
new text end
Sec. 5. new text begin REPEALER.
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new text begin
Minnesota Statutes 2020, section 174.634,
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is repealed.
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new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
APPENDIX
Repealed Minnesota Statutes: 21-02933
174.634 PASSENGER RAIL; FUNDING.
(a) The commissioner may apply for funding from federal, state, regional, local, and private sources to carry out the commissioner's duties in section 174.632.
(b) Section 174.88, subdivision 2, does not apply to the commissioner's performance of duties and exercise of powers under sections 174.632 to 174.636.