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HF 1638

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/06/2021 12:56pm

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

Bill Text Versions

Engrossments
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.
deleted 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. 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 beginand
deleted text end

(3) make agreements deleted text beginwithdeleted text endnew 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 endnew text begin;
new text end

new text begin (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

new text begin (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

new text begin (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

new text begin 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.

new text begin [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

new text begin (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.
new text end

new text begin (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

new text begin (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

new text begin (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

new text begin Funds in the state railroad account must be used only for:
new text end

new text begin (1) salaries and operating expenses of Department of Transportation personnel to carry
out freight rail and passenger rail functions;
new text end

new text begin (2) expenses of consultants and contractors selected by the commissioner of transportation
to assist the execution of freight rail and passenger rail functions;
new text end

new text begin (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;
new text end

new text begin (4) matching federal funds received for freight rail and passenger rail activities; and
new text end

new text begin (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:
new text end

new text begin (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

new text begin (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

new text begin (1) by July 31, 2021, 15 percent of the state railroad property tax estimate;
new text end

new text begin (2) by July 31, 2022, 25 percent of the state railroad property tax estimate;
new text end

new text begin (3) by July 31, 2023, 30 percent of the state railroad property tax estimate;
new text end

new text begin (4) by July 31, 2024, 45 percent of the state railroad property tax estimate;
new text end

new text begin (5) by July 31, 2025, 60 percent of the state railroad property tax estimate;
new text end

new text begin (6) by July 31, 2026, 85 percent of the state railroad property tax estimate; and
new text end

new text begin (7) by July 31, 2027, and each July 31 thereafter, 100 percent of the state railroad property
tax estimate.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2020, section 174.634, new text end new text begin is repealed.
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

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.