SF 694

as introduced - 88th Legislature (2013 - 2014) Posted on 03/01/2013 08:22am

A bill for an act
relating to transportation; establishing the governor's budget for transportation;
appropriating money for transportation, Metropolitan Council, and public
safety activities; providing for fund transfers and tort claims; establishing a
transportation economic development account and related regulations; clarifying
expenses not considered trunk highway purposes; modifying the grade crossing
safety account; providing authority to issue revenue bonds; establishing a
metropolitan area sales and use tax for transit; extending an effective date; making
exemptions; amending Minnesota Statutes 2012, sections 161.20, subdivision
3; 219.1651; 473.39, by adding a subdivision; Laws 2009, chapter 9, section 1;
proposing coding for new law in Minnesota Statutes, chapters 116J; 473.

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

ARTICLE 1

TRANSPORTATION APPROPRIATIONS

Section 1. SUMMARY OF APPROPRIATIONS.

The amounts shown in this section summarize direct appropriations, by fund, made
in this act.

		2014		2015		Total
General	$	67,217,000	$	67,217,000	$	134,434,000
Airports		19,109,000		19,109,000		38,218,000
C.S.A.H.		593,022,000		603,850,000		1,196,872,000
M.S.A.S.		152,173,000		154,491,000		306,664,000
Special Revenue		49,738,000		49,959,000		99,697,000
Highway User		10,406,000		10,406,000		20,812,000
Trunk Highway		1,710,481,000		1,638,828,000		3,349,309,000
Total	$	2,602,146,000	$	2,543,860,000	$	5,146,006,000

Sec. 2. TRANSPORTATION APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this act. The appropriations are from the trunk
highway fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2014" and "2015" used in this act mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2014, or June 30, 2015,
respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015.
"The biennium" is fiscal years 2014 and 2015.

			APPROPRIATIONS
			Available for the Year
			Ending June 30
				2014		2015

Sec. 3. DEPARTMENT OF TRANSPORTATION

Subdivision 1. Total Appropriation

$

2,404,403,000

$

2,345,815,000

Appropriations by Fund
	2014	2015
General	17,186,000	17,105,000
Airports	19,109,000	19,109,000
C.S.A.H.	593,022,000	603,850,000
M.S.A.S.	152,173,000	154,491,000
Trunk Highway	1,622,913,000	1,551,260,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2. Multimodal Systems

42,985,000

42,904,000

Appropriations by Fund
	2014	2015
General	17,129,000	17,048,000
Airports	19,084,000	19,084,000
Trunk Highway	6,772,000	6,772,000

(a) Aeronautics

20,184,000

20,184,000

Appropriations by Fund
	2014	2015
Trunk Highway	1,100,000	1,100,000
Airports	19,084,000	19,084,000

(1) Airport Development and Assistance

13,798,000

13,798,000

This appropriation is from the state
airports fund and must be spent according
to Minnesota Statutes, section 360.305,
subdivision 4.

The base appropriation for fiscal years 2016
and 2017 is $14,298,000 for each year.

Notwithstanding Minnesota Statutes, section
16A.28, subdivision 6, this appropriation is
available until expended.

If the appropriation for either year is
insufficient, the appropriation for the other
year is available for it.

(2) Aviation Support and Services

6,386,000

6,386,000

Appropriations by Fund
	2014	2015
Airports	5,286,000	5,286,000
Trunk Highway	1,100,000	1,100,000

$65,000 in each year is from the state airports
fund for the Civil Air Patrol.

(b) Transit

17,148,000

17,067,000

Appropriations by Fund
	2014	2015
General	16,373,000	16,292,000
Trunk Highway	775,000	775,000

The base appropriation from the general
fund is $16,373,000 for fiscal year 2014 and
$16,292,000 for fiscal year 2015.

$100,000 in fiscal year 2014 is from the
general fund for the administrative expenses
of the Minnesota Council on Transportation
Access under Minnesota Statutes, section
174.285.

(c) Passenger Rail

500,000

500,000

This appropriation is from the general
fund for passenger rail system planning,
alternatives analysis, environmental analysis,
design, and preliminary engineering under
Minnesota Statutes, sections 174.632 to
174.636.

(d) Freight

5,153,000

5,153,000

Appropriations by Fund
	2014	2015
General	256,000	256,000
Trunk Highway	4,897,000	4,897,000

Subd. 3. State Roads

1,556,388,000

1,484,735,000

Appropriations by Fund
	2014	2015
General	3,000	3,000
Trunk Highway	1,556,385,000	1,484,732,000

(a) Operations and Maintenance

262,395,000

262,395,000

(b) Program Planning and Delivery

206,470,000

206,470,000

$130,000 in each year is available for
administrative costs of the department's
targeted group business program.

$266,000 in each year is available for grants
to metropolitan planning organizations
outside the seven-county metropolitan area.

$75,000 in each year is available for a
transportation research contingent account
to finance research projects that are
reimbursable from the federal government or
from other sources. If the appropriation for
either year is insufficient, the appropriation
for the other year is available for it.

$900,000 in each year is available for
grants for transportation studies outside
the metropolitan area to identify critical
concerns, problems, and issues. These
grants are available (1) to regional
development commissions; (2) in regions
where no regional development commission
is functioning, to joint powers boards
established under agreement of two or
more political subdivisions in the region to
exercise the planning functions of a regional
development commission; and (3) in regions
where no regional development commission
or joint powers board is functioning, to the
department's district office for that region.

(c) State Road Construction Total

880,400,000

806,600,000

Appropriations by Fund
	2014	2015
Trunk Highway	880,400,000	806,600,000

(1) Economic Recovery Funds - Federal Highway Aid

1,000,000

1,000,000

To complete projects using funds
made available to the commissioner
of transportation under title XII of the
American Recovery and Reinvestment Act
of 2009, Public Law 111-5 and implemented
under Minnesota Statutes, section 161.36,
subdivision 7.

(2) State Road Construction

879,400,000

805,400,000

It is estimated that the appropriations for the
biennium will be funded as follows:

Appropriations by Fund
	2014	2015
Federal Highway Aid	489,200,000	482,200,000
Highway User Taxes	390,200,000	323,200,000

The commissioner of transportation shall
notify the chairs and ranking minority
members of the legislative committees with
jurisdiction over transportation finance of
any significant events that should cause these
estimates to change.

This appropriation is for the actual
construction, reconstruction, and
improvement of trunk highways, including
design-build contracts and consultant usage
to support these activities. This includes the
cost of actual payment to landowners for
lands acquired for highway rights-of-way,
payment to lessees, interest subsidies, and
relocation expenses.

The base appropriation is $635,000,000 in
fiscal year 2016 and $635,000,000 in fiscal
year 2017.

The commissioner may expend up to one-half
of one percent of the federal appropriations
under this paragraph as grants to opportunity
industrialization centers and other nonprofit
job training centers for job training programs
related to highway construction.

The commissioner may transfer up to
$15,000,000 each year to the transportation
revolving loan fund.

The commissioner may receive money
covering other shares of the cost of
partnership projects. These receipts are
appropriated to the commissioner for these
projects.

(d) Highway Debt Service

201,952,000

204,099,000

$192,452,000 the first year and $194,599,000
the second year are for transfer to the state
bond fund. If this appropriation is insufficient
to make all transfers required in the year
for which it is made, the commissioner of
management and budget shall notify the
Committee on Finance of the senate and
the Committee on Ways and Means of the
house of representatives of the amount of the
deficiency and shall then transfer that amount
under the statutory open appropriation. Any
excess appropriation cancels to the trunk
highway fund.

(e) Electronic Communications

5,171,000

5,171,000

Appropriations by Fund
	2014	2015
General	3,000	3,000
Trunk Highway	5,168,000	5,168,000

The general fund appropriation is to equip
and operate the Roosevelt signal tower for
Lake of the Woods weather broadcasting.

Subd. 4. Local Roads

745,195,000

758,341,000

(a) County State Aid Roads

593,022,000

603,850,000

This appropriation is from the county
state-aid highway fund under Minnesota
Statutes, section 161.081, and chapter 162,
and is available until spent.

If the commissioner of transportation
determines that a balance remains in the
county state-aid highway fund following
the appropriations and transfers made in
this subdivision, and that the appropriations
made are insufficient for advancing county
state-aid highway projects, an amount
necessary to advance the projects, not to
exceed the balance in the county state-aid
highway fund, is appropriated in each year
to the commissioner. Within two weeks
of a determination under this contingent
appropriation, the commissioner of
transportation shall notify the commissioner
of management and budget and the chairs
and ranking minority members of the
legislative committees with jurisdiction over
transportation finance concerning funds
appropriated.

(b) Municipal State Aid Roads

152,173,000

154,491,000

This appropriation is from the municipal
state-aid street fund under Minnesota
Statutes, chapter 162, and is available until
spent.

If the commissioner of transportation
determines that a balance remains in the
municipal state-aid street fund following the
appropriations and transfers made in this
subdivision, and that the appropriations made
are insufficient for advancing municipal
state-aid street projects, an amount necessary
to advance the projects, not to exceed
the balance in the municipal state-aid
street fund, is appropriated in each year
to the commissioner. Within two weeks
of a determination under this contingent
appropriation, the commissioner of
transportation shall notify the commissioner
of management and budget and the chairs
and ranking minority members of the
legislative committees with jurisdiction over
transportation finance concerning funds
appropriated.

Subd. 5. Agency Management

59,835,000

59,835,000

Appropriations by Fund
	2014	2015
General	54,000	54,000
Airports	25,000	25,000
Trunk Highway	59,756,000	59,756,000

(a) Agency Services

41,997,000

41,997,000

Appropriations by Fund
	2014	2015
Airports	25,000	25,000
Trunk Highway	41,972,000	41,972,000

(b) Buildings

17,838,000

17,838,000

Appropriations by Fund
	2014	2015
General	54,000	54,000
Trunk Highway	17,784,000	17,784,000

Any money appropriated to the commissioner
of transportation for building construction for
any fiscal year before the first year is available
for the commissioner of transportation
during the biennium to the extent that the
commissioner spends the money on the
building construction projects for which the
money was originally encumbered during the
fiscal year for which it was appropriated.

Subd. 6. Transfers

(a) With the approval of the commissioner of
management and budget, the commissioner
of transportation may transfer unencumbered
balances among the appropriations from the
trunk highway fund and the state airports
fund made in this section. No transfer
may be made from the appropriation for
state road construction. No transfer may
be made from the appropriations for debt
service to any other appropriation. Transfers
under this subdivision may not be made
between funds. Transfers between programs
must be reported immediately to the chairs
and ranking minority members of the
legislative committees with jurisdiction over
transportation finance.

(b) The commissioner shall transfer from
the flexible highway account in the county
state-aid highway fund:

(1) $12,700,000 in the first year to the
municipal state-aid street fund;

(2) $10,000,000 in the second year to the
municipal turnback account in the municipal
state-aid street fund; and

(3) the remainder in each year to the county
turnback account in the county state-aid
highway fund. The funds transferred are
for highway turnback purposes as provided
by Minnesota Statutes, section 161.081,
subdivision 3.

Subd. 7. Use of State Road Construction Appropriations

Any money appropriated to the commissioner
of transportation for state road construction
for any fiscal year before fiscal year 2012
is available to the commissioner during the
biennium to the extent that the commissioner
spends the money on the state road
construction project for which the money
was originally encumbered during the fiscal
year for which it was appropriated.

Subd. 8. Contingent Appropriation

The commissioner of transportation, with
the approval of the governor and the
written approval of at least five members
of a group consisting of the members of
the Legislative Advisory Commission
under Minnesota Statutes, section 3.30,
and the ranking minority members of the
legislative committees with jurisdiction over
transportation finance, may transfer all or
part of the unappropriated balance in the
trunk highway fund to an appropriation (1)
for trunk highway design, construction, or
inspection in order to take advantage of an
unanticipated receipt of income to the trunk
highway fund or to take advantage of federal
advanced construction funding, (2) for trunk
highway maintenance in order to meet an
emergency, or (3) to pay tort or environmental
claims. Nothing in this subdivision
authorizes the commissioner to increase the
use of federal advanced construction funding
beyond amounts specifically authorized.
Any transfer as a result of the use of federal
advanced construction funding must include
an analysis of the effects on the long-term
trunk highway fund balance. The amount
transferred is appropriated for the purpose of
the account to which it is transferred.

Sec. 4. METROPOLITAN COUNCIL TRANSIT

$

41,489,000

$

41,570,000

Transit

41,489,000

41,570,000

This appropriation is for transit system
operations.

Sec. 5. PUBLIC SAFETY

Subdivision 1. Total Appropriation

$

155,654,000

$

155,875,000

Appropriations by Fund
	2014	2015
General	8,542,000	8,542,000
Trunk Highway	86,968,000	86,968,000
Highway User	10,406,000	10,406,000
Special Revenue	49,738,000	49,959,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2. Administration and Related Services

12,628,000

12,628,000

Appropriations by Fund
	2014	2015
General	4,900,000	4,900,000
Trunk Highway	6,343,000	6,343,000
Highway User	1,385,000	1,385,000

(a) Office of Communications

504,000

504,000

Appropriations by Fund
	2014	2015
General	111,000	111,000
Trunk Highway	393,000	393,000

(b) Public Safety Support

8,439,000

8,439,000

Appropriations by Fund
	2014	2015
General	3,467,000	3,467,000
Trunk Highway	3,606,000	3,606,000
Highway User	1,366,000	1,366,000

$380,000 in each year is from the general
fund for payment of public safety officer
survivor benefits under Minnesota Statutes,
section 299A.44. If the appropriation for
either year is insufficient, the appropriation
for the other year is available for it.

$1,367,000 in each year is from the general
fund to be deposited in the public safety
officer's benefit account. This money
is available for reimbursements under
Minnesota Statutes, section 299A.465.

$600,000 in each year is from the general
fund and $100,000 in each year is from the
trunk highway fund for soft body armor
reimbursements under Minnesota Statutes,
section 299A.38.

$792,000 in each year is from the general
fund for transfer by the commissioner of
management and budget to the trunk highway
fund on December 31, 2013, and December
31, 2014, respectively, in order to reimburse
the trunk highway fund for expenses not
related to the fund. These represent amounts
appropriated out of the trunk highway
fund for general fund purposes in the
administration and related services program.

$610,000 in each year is from the highway
user tax distribution fund for transfer by the
commissioner of management and budget
to the trunk highway fund on December 31,
2013, and December 31, 2014, respectively,
in order to reimburse the trunk highway
fund for expenses not related to the fund.
These represent amounts appropriated out
of the trunk highway fund for highway
user tax distribution fund purposes in the
administration and related services program.

$716,000 in each year is from the highway
user tax distribution fund for transfer by the
commissioner of management and budget to
the general fund on December 31, 2013, and
December 31, 2014, respectively, in order to
reimburse the general fund for expenses not
related to the fund. These represent amounts
appropriated out of the general fund for
operation of the criminal justice data network
related to driver and motor vehicle licensing.

(c) Technical Support Services

3,685,000

3,685,000

Appropriations by Fund
	2014	2015
General	1,322,000	1,322,000
Trunk Highway	2,344,000	2,344,000
Highway User	19,000	19,000

Subd. 3. State Patrol

84,616,000

84,616,000

Appropriations by Fund
	2014	2015
General	3,642,000	3,642,000
Trunk Highway	80,189,000	80,189,000
Highway User	785,000	785,000

(a) Patrolling Highways

72,522,000

72,522,000

Appropriations by Fund
	2014	2015
General	37,000	37,000
Trunk Highway	72,393,000	72,393,000
Highway User	92,000	92,000

(b) Commercial Vehicle Enforcement

7,796,000

7,796,000

$600,000 in each year is for the Office of
Pupil Transportation Safety under Minnesota
Statutes, section 169.435.

(c) Capitol Security

3,605,000

3,605,000

This appropriation is from the general fund.

The commissioner may not (1) spend
any money from the trunk highway fund
for capitol security or (2) permanently
transfer any state trooper from the patrolling
highways activity to capitol security.

$500,000 in each year is appropriated from
the general fund to the commissioner of
public safety to increase security in the
Capitol Complex.

(d) Vehicle Crimes Unit

693,000

693,000

This appropriation is from the highway user
tax distribution fund.

This appropriation is to investigate
registration tax and motor vehicle sales tax
liabilities from individuals and businesses
that currently do not pay all taxes owed, and
illegal or improper activity related to sale,
transfer, titling, and registration of meter
vehicles.

Subd. 4. Driver and Vehicle Services

56,621,000

56,842,000

Appropriations by Fund
	2014	2015
Highway User	8,236,000	8,236,000
Special Revenue	48,384,000	48,605,000
Trunk Highway	1,000	1,000

(a) Vehicle Services

27,909,000

28,007,000

Appropriations by Fund
	2014	2015
Highway User	8,236,000	8,236,000
Special Revenue	19,673,000	19,771,000

This appropriation is from the vehicle
services operating account in the special
revenue fund.

$650,000 each year is for seven additional
positions to enhance customer service related
to vehicle title issuance.

$98,000 the second year is from the special
revenue fund for the vehicle services
portion of a new telephone system. This
amount will transfer to the Office of
Enterprise Technology for construction and
development of the system. This is a onetime
appropriation and is available until expended.
Ongoing support costs will be incorporated
into a service level agreement and will be
paid to the Office of Enterprise Technology
under the rates and mechanisms specified in
that agreement.

(b) Driver Services

28,712,000

28,835,000

Appropriations by Fund
	2014	2015
Trunk Highway	1,000	1,000
Special Revenue	28,711,000	28,834,000

This appropriation is from the driver services
operating account in the special revenue fund.

$71,000 each year is from the special revenue
fund for one new facial recognition position.

$52,000 the second year is from the
special revenue fund for the driver services
portion of a new telephone system. This
amount will transfer to the Office of
Enterprise Technology for construction and
development of the system. This is a onetime
appropriation and is available until expended.
Ongoing support costs will be incorporated
into a service level agreement and will be
paid to the Office of Enterprise Technology
under the rates and mechanisms specified in
that agreement.

Subd. 5. Traffic Safety

435,000

435,000

Subd. 6. Pipeline Safety

1,354,000

1,354,000

This appropriation is from the pipeline safety
account in the special revenue fund.

Sec. 6. TORT CLAIMS

$

600,000

$

600,000

This appropriation is to the commissioner of
management and budget.

If the appropriation for either year is
insufficient, the appropriation for the other
year is available for it.

ARTICLE 2

TRANSPORTATION POLICY

Section 1.

[116J.4365] TRANSPORTATION ECONOMIC DEVELOPMENT
ASSISTANCE PROGRAM.

Subdivision 1.

Program established.

(a) The commissioners of transportation and
employment and economic development shall develop and implement a transportation
economic development assistance program as provided in this section, for providing
financial assistance on a geographically balanced basis through competitive grants
for projects in all modes of transportation that provide measurable local, regional, or
statewide economic benefit.

(b) The commissioners of transportation and employment and economic
development may provide financial assistance for a transportation project at their
discretion, subject to the requirements of this section.

Subd. 2.

Transportation economic development account.

(a) A transportation
economic development account is established in the special revenue fund under the
budgetary jurisdiction of the senate and house of representatives committees having
jurisdiction over transportation finance. The account consists of funds donated, allotted,
transferred, or otherwise provided to the account.

(b) Money in the account may be expended only as appropriated by law.

(c) Notwithstanding paragraph (a), the account may not contain money transferred
or otherwise provided from the trunk highway fund.

Subd. 3.

Program administration.

In implementing the transportation economic
development assistance program, the commissioners of transportation and employment
and economic development shall make reasonable efforts to (1) publicize each solicitation
for applications among all eligible recipients, and (2) provide technical and informational
assistance in creating and submitting applications.

Subd. 4.

Economic impact performance measures.

The commissioner of
employment and economic development shall develop economic impact performance
measures to analyze projects for which financial assistance under this section is being
applied for or has been previously provided.

Subd. 5.

Financial assistance; criteria.

The commissioners of transportation and
employment and economic development shall establish criteria for evaluating projects
for financial assistance under this section. At a minimum, the criteria must provide an
objective method to prioritize and select projects on the basis of:

(1) the extent to which the project provides measurable economic benefit;

(2) consistency with relevant state and local transportation plans;

(3) the availability and commitment of funding or in-kind assistance for the project
from nonpublic sources;

(4) the need for the project as part of the overall transportation system;

(5) the extent to which completion of the project will improve the movement of
people and freight; and

(6) geographic balance as required under subdivision 7, paragraph (b).

Subd. 6.

Financial assistance; project evaluation process.

(a) Following the
criteria established under subdivision 5, the commissioner of employment and economic
development shall (1) evaluate proposed projects, and (2) certify those that may receive
financial assistance.

(b) As part of the project evaluation process, the commissioner of transportation
shall certify that a project constitutes an eligible and appropriate transportation project.

Subd. 7.

Financial assistance; awards.

(a) The financial assistance awarded by the
commissioners of transportation and employment and economic development may not
exceed 70 percent of a project's total costs.

(b) The commissioners of transportation and employment and economic development
shall ensure that financial assistance is provided in a manner that is balanced throughout
the state, including with respect to (1) the number of projects receiving funding in a
particular geographic location or region of the state, and (2) the total amount of financial
assistance provided for projects in a particular geographic location or region of the state.

Subd. 8.

Legislative report.

(a) By February 1 of each odd-numbered year, the
commissioner of transportation, with assistance from the commissioner of employment
and economic development, shall submit a report on the transportation economic
development assistance program to the chairs and ranking minority members of the
house of representatives and senate committees with jurisdiction over transportation
policy and finance.

(b) At a minimum, the report must:

(1) summarize the requirements and implementation of the transportation economic
development assistance program established in this section;

(2) review the criteria and economic impact performance measures used for
evaluation, prioritization, and selection of projects;

(3) provide a brief overview of each project that received financial assistance under
the program, which must at a minimum identify:

(i) basic project characteristics, such as funding recipient, geographic location,
and type of transportation modes served;

(ii) sources and respective amounts of project funding; and

(iii) the degree of economic benefit anticipated or observed, following the economic
impact performance measures established under subdivision 4;

(4) identify the allocation of funds, including but not limited to a breakdown of total
project funds by transportation mode, the amount expended for administrative costs, and
the amount transferred to the transportation economic development assistance account;

(5) evaluate the overall economic impact of the program consistent with the
accountability measurement requirements under section 116J.997; and

(6) provide recommendations for any legislative changes related to the program.

Sec. 2.

Minnesota Statutes 2012, section 161.20, subdivision 3, is amended to read:

Subd. 3.

Trunk highway fund appropriations.

The commissioner may expend
trunk highway funds only for trunk highway purposes. Payment of expenses related
to Bureau of Criminal Apprehension laboratory, Explore Minnesota Tourism kiosks,
Minnesota Safety Council, tort claims, driver education programs, Emergency Medical
Services Board, Mississippi River Parkway Commission, payments to MN.IT Services in
excess of actual costs incurred for trunk highway purposes, and personnel costs incurred
on behalf of the Governor's Office do not further a highway purpose and do not aid in the
construction, improvement, or maintenance of the highway system.

Sec. 3.

Minnesota Statutes 2012, section 219.1651, is amended to read:

219.1651 GRADE CROSSING SAFETY ACCOUNT.

A Minnesota grade crossing safety account is created in the special revenue fund,
consisting of money credited to the account by law. Money in the account is appropriated
to the commissioner of transportation for rail-highway grade crossing safety projects
on public streets and highways, including engineering costs. At the discretion of the
commissioner of transportation, money in the account at the end of each fiscal year cancels
biennium may cancel to the trunk highway fund.

Sec. 4.

Minnesota Statutes 2012, section 473.39, is amended by adding a subdivision
to read:

Subd. 6.

Revenue bonds.

(a) In addition to the other authority granted in this
section, the council may, by resolution, authorize the issuance and sale of its revenue
bonds, notes, or other obligations to provide funds to implement the council's transit
capital improvement program and to refund bonds issued under this subdivision.

(b) The bonds shall be sold, issued, and secured in the manner provided in chapter
475 for bonds payable solely from or secured by revenues, and the council shall have the
same powers and duties as a municipality and its governing body in issuing bonds under
that chapter. The bonds shall be payable from and secured by a pledge of all or any part of
revenues receivable from the metropolitan area sales and use tax imposed under section
473.426 and associated investment earning and debt proceeds, shall not and shall state that
they do not represent or constitute a general obligation of the council, and shall not be
included in the net debt limit of any city, county, or other subdivision of the state for the
purpose of any net debt limitation. The bonds will be deemed payable wholly from the
income of revenue-producing conveniences within the meaning of section 475.58. The
proceeds of the bonds may also be used to fund necessary reserves and to pay credit
enhancement fees, issuance costs, and other financing costs during the life of the debt.

(c) The bonds may be secured by a bond resolution, or a trust indenture entered into
by the council with a corporate trustee within or outside the state, which shall define the
revenues and bond proceeds pledged for the payment and security of the bonds. The
pledge shall be a valid charge on the revenues received under section 473.426. Neither the
state, nor any municipality or political subdivision except the council, nor any member or
officer or employee of the council is liable on the obligations. No mortgage or security
interest in any tangible real or personal property shall be granted to the bondholders or the
trustee, but they shall have a valid security interest in the revenues and bond proceeds
received by the council and pledged to the payment of the bonds. In the bond resolution or
trust indenture, the council may make such covenants as it determines to be reasonable for
the protection of the bondholders.

Sec. 5.

[473.426] METROPOLITAN AREA SALES AND USE TAX FOR
TRANSIT.

Subdivision 1.

Authorization; imposition.

(a) Notwithstanding any law to the
contrary, the ........... shall impose and maintain a transit sales and use tax at a rate of
one-quarter of one percent on retail sales and uses taxable under chapter 297A that occur
within the metropolitan area.

(b) The tax authorized in this section and the manner in which it is imposed are
exempt from section 297A.99, subdivisions 1, 2, 3, and 12. The provisions of section
297A.99 that relate to imposition, administration, collection, and enforcement apply to
the tax authorized in this section.

(c) The tax authorized in this section shall not be used in determining a tax if doing
so will result in the total tax on lodging in the city of Minneapolis exceeding the maximum
allowed tax under Laws 1986, chapter 396, section 5, as amended in Laws 2001, First
Special Session chapter 5, article 12, section 87, or in determining a tax that may be
imposed under any other limitation.

Subd. 2.

Allocation of revenues.

After deductions allowed under section 297A.99,
subdivision 11, the commissioner of revenue shall remit the proceeds of the tax imposed
under this section to the Metropolitan Council on a monthly basis.

Subd. 3.

Uses of tax revenue.

Revenues received from the tax imposed under this
section may be used only for the following purposes:

(1) to pay costs of collection;

(2) to pay any principal, interest, or other financing costs on debt issued under
section 473.39, subdivision 6;

(3) to pay operating and capital costs, including planning and project development
costs, of the metropolitan area transit system, including those related to sections 473.371
and 473.449; and

(4) to maintain reserves for the purposes stated in clauses (1) to (3), if doing so is
deemed reasonable and appropriate by the Metropolitan Council.

Subd. 4.

Maintenance of tax.

The tax authorized in this section must be maintained
and not terminated other than by legislative enactment.

EFFECTIVE DATE.

This section is effective January 1, 2014, and applies to sales
and purchases made after December 31, 2013.

Sec. 6.

Laws 2009, chapter 9, section 1, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective the day following final enactment,
and expires on June 30, 2013 2016.

Sec. 7. FINANCIAL ASSISTANCE FOR NORTHSTAR COMMUTER RAIL
EXPENSES; GREATER MINNESOTA.

The portion of the cost to provide financial assistance for the Greater Minnesota
Transit component of the Northstar Commuter Rail is exempt from the requirements in
Minnesota Statutes, section 174.24, subdivision 1.