SF 1753

as introduced - 90th Legislature (2017 - 2018) Posted on 03/07/2017 09:09am

A bill for an act
relating to transportation; establishing an active transportation program to support
bicycle, pedestrian, and other nonmotorized transportation activities; allocating
certain general sales tax revenue; requiring a legislative report; amending Minnesota
Statutes 2016, section 297A.94; proposing coding for new law in Minnesota
Statutes, chapter 174.

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

Section 1.

new text begin [174.38] ACTIVE TRANSPORTATION PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Bond-eligible cost" means:
new text end

new text begin (1) expenditures under this section for acquisition of land or permanent easements,
predesign, design, preliminary and final engineering, environmental analysis, construction,
and reconstruction of publicly owned infrastructure for nonmotorized transportation in
Minnesota with a useful life of at least ten years;
new text end

new text begin (2) preparation of land for which a nonmotorized transportation route is established,
including demolition of structures and remediation of any hazardous conditions on the land;
and
new text end

new text begin (3) the unpaid principal on debt issued by a political subdivision for a nonmotorized
transportation project.
new text end

new text begin (c) "Commissioner" means the commissioner of transportation.
new text end

new text begin Subd. 2. new text end

new text begin Program established. new text end

new text begin Upon availability of funds provided for purposes of this
section, the commissioner must establish a program to support bicycling, pedestrian activities,
and other forms of nonmotorized transportation.
new text end

new text begin Subd. 3. new text end

new text begin Active transportation accounts. new text end

new text begin (a) An active transportation account is
established in the bond proceeds fund. The account consists of state bond proceeds
appropriated to the commissioner. Money in the account must be expended only on
bond-eligible costs of a project receiving financial assistance under this section. All uses
of funds from the account must be for publicly owned property.
new text end

new text begin (b) An active transportation account is established in the special revenue fund. The
account consists of funds provided by law and any other money donated, allotted, transferred,
or otherwise provided to the account. Money in the account must be expended only on a
project that receives financial assistance under this section.
new text end

new text begin Subd. 4. new text end

new text begin Program administration. new text end

new text begin (a) The commissioner must establish program
requirements, including:
new text end

new text begin (1) assistance eligibility, subject to the requirements under paragraph (b);
new text end

new text begin (2) a solicitation and application process that minimizes the burden on applicants; and
new text end

new text begin (3) procedures to award and pay financial assistance.
new text end

new text begin (b) Eligible recipients of financial assistance under this section are:
new text end

new text begin (1) a political subdivision; and
new text end

new text begin (2) a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code, as
amended.
new text end

new text begin (c) The commissioner must make reasonable efforts to publicize each application
solicitation among all eligible recipients. The commissioner must assist applicants to create
and submit applications, with an emphasis on providing assistance in communities that are
historically and currently underrepresented in local or regional planning, including
communities of color, low-income households, people with disabilities, and people with
limited English proficiency.
new text end

new text begin (d) The commissioner may provide grants or other financial assistance for a project.
new text end

new text begin (e) The commissioner is prohibited from expending more than one percent of available
funds in a fiscal year under this section on program administration.
new text end

new text begin Subd. 5. new text end

new text begin State general obligation bond funds. new text end

new text begin Minnesota Constitution, article XI,
section 5, clause (a), requires that state general obligation bonds be issued to finance only
the acquisition or betterment of public land, buildings, and other public improvements of a
capital nature. The legislature has determined that many nonmotorized transportation
infrastructure projects constitute betterments and capital improvements within the meaning
of the Minnesota Constitution and capital expenditures under generally accepted accounting
principles, and will be financed more efficiently and economically under this section than
by direct appropriations for specific projects.
new text end

new text begin Subd. 6. new text end

new text begin Use of funds. new text end

new text begin (a) For a project funded by state bond proceeds under this section,
financial assistance is limited to bond-eligible costs.
new text end

new text begin (b) Subject to paragraph (a), the commissioner must determine permissible uses of
financial assistance under this section, which must include:
new text end

new text begin (1) construction and maintenance of bicycle, trail, and pedestrian infrastructure, including
but not limited to safe routes to school infrastructure and bicycle facilities and centers; and
new text end

new text begin (2) noninfrastructure programming, including activities as specified in section 174.40,
subdivision 7a, paragraph (b).
new text end

new text begin Subd. 7. new text end

new text begin Project evaluation and selection. new text end

new text begin (a) The commissioner must establish a
project evaluation and selection process that is competitive, criteria-based, and objective.
new text end

new text begin (b) The process must include criteria and prioritization of projects based on:
new text end

new text begin (1) the project's inclusion in a municipal or regional nonmotorized transportation system
plan;
new text end

new text begin (2) the project's location in a jurisdiction with a complete streets policy, as provided
under section 174.75, either in effect or under development with estimated enactment within
six months of the grant award date;
new text end

new text begin (3) the extent to which the project supports development of continuous and convenient
safe routes to school;
new text end

new text begin (4) the extent to which the project supports development of routes to and connections
with educational facilities, centers of employment, governmental services, health care
facilities, food sources, transit facilities, and other community destinations;
new text end

new text begin (5) the project's general benefits to public health and safety;
new text end

new text begin (6) geographic equity in project benefits, with an emphasis on communities that are
historically and currently underrepresented in local or regional planning, including
communities of color, low-income households, people with disabilities, and people with
limited English proficiency; and
new text end

new text begin (7) benefits in areas or locations experiencing high rates of pedestrian or bicycle
collisions.
new text end

new text begin Subd. 8. new text end

new text begin Grant cancellation. new text end

new text begin If, five years after execution of a grant agreement, the
commissioner determines that the grantee has not proceeded in a timely manner with
implementation of the funded project, the commissioner must cancel the grant. The grantee
must repay to the commissioner all grant money received under the program. Section
16A.642 applies to any appropriation made from the bond proceeds fund to the commissioner
under this section that has not been awarded as financial assistance.
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. 2.

Minnesota Statutes 2016, 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 management and budget 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) new text begin The commissioner must deposit the revenues, including interest and penalties minus
any refunds, derived from the sale of bicycles and bicycle repair and replacement parts in
the active transportation account in the special revenue fund under section 174.38, subdivision
3. For purposes of this paragraph, the percentage of total sales and use tax revenue derived
from the sale of bicycle repair and replacement parts is a set percentage of the total sales
and use tax revenues collected in the state, with the percentage determined under section 3
of this act.
new text end

new text begin (f) new text end 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.

deleted text begin (f) deleted text end new text begin (g) new text end The revenue dedicated under paragraph deleted text begin (e) deleted text end new text begin (f) new text end 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.

deleted text begin (g) deleted text end new text begin (h) new text end The revenues deposited under paragraphs (a) to deleted text begin (f) deleted text end new text begin (g) new text end do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section 297A.62,
subdivision 1a, which must be deposited as provided under the Minnesota Constitution,
article XI, section 15.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
December 31, 2017.
new text end

Sec. 3. new text begin CALCULATION OF THE PERCENT OF SALES TAX REVENUE
ATTRIBUTABLE TO THE SALE OF BICYCLE REPAIR AND REPLACEMENT
PARTS.
new text end

new text begin By December 1, 2017, the commissioner of revenue must estimate the percentage of
total sales tax revenues collected in calendar year 2016 that is attributable to the sales and
purchases of bicycles and bicycle repair and replacement parts. When making the
determination, the commissioner may consult with representatives from bicycle producers
and retailers, industry trade groups, and the most recently available national and state
information. The commissioner's decision is final. For purposes of this section, "bicycle"
has the meaning given in Minnesota Statutes, section 169.011, subdivision 4.
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 ACTIVE TRANSPORTATION PROGRAM RECOMMENDATIONS.
new text end

new text begin (a) By October 1, 2017, the Advisory Committee on Nonmotorized Transportation under
Minnesota Statutes, section 174.37, must develop and submit recommendations to the
commissioner of transportation regarding the project evaluation and selection processes
under Minnesota Statutes, section 174.38, subdivision 7.
new text end

new text begin (b) The advisory committee is encouraged to consult with representatives from the
Bicycle Alliance of Minnesota; Minnesota Chamber of Commerce; Metropolitan Council
Transportation Accessibility Advisory Committee; Minnesota Department of Transportation
district area transportation partnerships; organizations representing elderly populations;
public health organizations with experience in active transportation; the Minnesota State
Council on Disability and other Minnesota state councils and commissions, including the
Council on Asian-Pacific Minnesotans, the Minnesota Council on Latino Affairs, the Council
for Minnesotans of African Heritage, the Minnesota Indian Affairs Council, the Office on
the Economic Status of Women, and the Cultural and Ethnic Communities Leadership
Council; and other stakeholders with expertise in equitable active transportation.
new text end

new text begin (c) In its next annual report under Minnesota Statutes, section 174.37, subdivision 4, the
advisory committee must include a summary of the recommendations under this section
and submit a copy of the report to the chairs and ranking minority members of the legislative
committees with jurisdiction over transportation policy and finance. The report is subject
to Minnesota Statutes, section 3.195.
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