Minnesota Session Laws - 1988, Regular Session

  

                         Laws of Minnesota 1988 

                        CHAPTER 603-H.F.No. 1749 
           An act relating to transportation; increasing the 
          excise tax on gasoline and special fuel to 20 cents 
          per gallon; increasing the fees for alternate fuel 
          permits; providing for the distribution of motor 
          vehicle excise tax revenue; creating a transportation 
          study board; repealing the contingent income tax 
          increase provision; appropriating money; amending 
          Minnesota Statutes 1986, sections 296.02, subdivision 
          1b; and 296.026, subdivision 2, as amended; Minnesota 
          Statutes 1987 Supplement, sections 296.025, 
          subdivisions 2a and 2b; and 297B.09, subdivision 1; 
          repealing Laws 1987, chapter 268, article 18, section 
          5. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 296.02, 
subdivision 1b, is amended to read:  
    Subd. 1b.  [RATES IMPOSED.] The gasoline excise tax is 
imposed at the following rate:  
    (a) For the period beginning on the first day of the month 
following the month of final enactment of Laws 1983, chapter 17, 
or on the first day of the second month following the month of 
final enactment of Laws 1983, chapter 17 if the date of final 
enactment of Laws 1983, chapter 17 is within 15 days of the end 
of the month, and ending December 31, 1983, gasoline is taxed at 
the rate of 16 cents per gallon.  
    (b) For the period on and after January 1, 1984, May 1, 
1988, gasoline is taxed at the rate of 17 20 cents per gallon.  
    Sec. 2.  Minnesota Statutes 1987 Supplement, section 
296.025, subdivision 2a, is amended to read: 
    Subd. 2a.  [TAX IMPOSED FOR RAILROAD USE.] There is imposed 
an excise tax of, at the same rate of 17 cents per gallon as 
the gasoline excise tax on special fuel used to propel trains in 
this state and not otherwise taxed as gasoline.  The tax shall 
be computed by using the same method as the gasoline excise tax 
imposed for railroad use under section 296.02, subdivision 2a, 
and shall be payable at the times, in the manner, and by the 
persons specified in this chapter. 
    Sec. 3.  Minnesota Statutes 1987 Supplement, section 
296.025, subdivision 2b, is amended to read: 
    Subd. 2b.  [TAX IMPOSED FOR BARGE USE.] There is imposed an 
excise tax of, at the same rate of 17 cents per gallon as the 
gasoline excise tax on special fuel used to propel barges in 
this state and not otherwise taxed as gasoline.  The tax shall 
be computed by using the same method as the gasoline excise tax 
imposed for barge use under section 296.02, subdivision 2b, and 
shall be payable at the times, in the manner, and by the persons 
specified in this chapter. 
    Sec. 4.  Minnesota Statutes 1986, section 296.026, 
subdivision 2, as amended by Laws 1988, chapter 450, section 4, 
is amended to read:  
    Subd. 2.  [PERMIT FEES IMPOSED.] The fees for annual 
alternate fuel permits are based on each vehicle's mileage in 
the preceding year and are as follows: 
        Gross Vehicle Weight             Fee 
        Under 6,000 pounds         $7.50 $8.80 per 1,000 miles  
        6,001 - 12,000 pounds      $ 9 $10.60 per 1,000 miles 
        12,00l - 18,000 pounds     $16 $18.80 per 1,000 miles 
        18,001 - 26,000 pounds     $23 $27.10 per 1,000 miles 
        26,001 - 36,000 pounds     $27 $31.80 per 1,000 miles 
        Over 36,000 pounds         $34 $40.00 per 1,000 miles 
    A log with validating receipts pertaining to the vehicle's 
out of state mileage may be supplied to the commissioner of 
public safety at the time of permit application to be subtracted 
from the actual mileage for the purpose of calculating the 
permit fee.  If no true cumulative mileage figures are available 
for the preceding year, the fee charged under this section must 
be based on 15,000 miles driven within the state. 
    The fee for a permit required by this section must be 
calculated based on the number of unexpired months remaining in 
the registration year of the vehicle as measured from the date 
of the occurrence of the event requiring the permit. 
    Sec. 5.  Minnesota Statutes 1987 Supplement, section 
297B.09, subdivision 1, is amended to read:  
    Subdivision 1.  [GENERAL FUND SHARE.] (a) Money collected 
and received under this chapter must be deposited in the state 
treasury and credited to the general fund.  The amounts 
collected and received shall be credited to the highway user tax 
distribution fund and the transit assistance fund as provided in 
this subdivision, and transferred from the general fund on July 
15 and January 15 of each fiscal year.  The commissioner of 
finance must make each transfer based upon the actual receipts 
of the preceding six calendar months and include the interest 
earned during that six-month period.  The commissioner of 
finance may establish a quarterly or other schedule providing 
for more frequent payments to the transit assistance fund if the 
commissioner determines it is necessary or desirable to provide 
for the cash flow needs of the recipients of money from the 
transit assistance fund.  
    Five (b) Thirty percent of the money collected and received 
under this chapter after June 30, 1988, and before July 1, 1991, 
must be deposited in the highway user tax distribution fund and 
the transit assistance fund for apportionment as provided in 
this section.  Of the money deposited under this 
section, follows:  75 percent must be credited to the highway 
user tax distribution fund for apportionment in the same manner 
and for the same purposes as other money in that fund., and the 
remaining 25 percent of the money must be credited to the 
transit assistance fund to be appropriated to the commissioner 
of transportation for transit assistance within the state and to 
the regional transit board. 
    (c) Thirty percent of the money collected and received 
under this chapter after June 30, 1991, must be deposited in the 
trunk highway fund and the transit assistance fund for 
apportionment as follows:  75 percent must be credited to the 
trunk highway fund and the remaining 25 percent must be credited 
to the transit assistance fund. 
    (b) (d) The distributions under this subdivision to the 
highway user tax distribution fund until June 30, 1991, and to 
the trunk highway fund thereafter, must be reduced by the amount 
necessary to fund the appropriation under section 41A.09, 
subdivision 1.  For the fiscal years ending June 30, 1988, and 
June 30, 1989, the commissioner of finance, before making the 
transfers required on July 15 and January 15 of each year, shall 
estimate the amount required to fund the appropriation under 
section 41A.09, subdivision 1, for the six-month period for 
which the transfer is being made.  The commissioner shall then 
reduce the amount transferred to the highway user tax 
distribution fund by the amount of that estimate.  The 
commissioner shall reduce the estimate for any six-month period 
by the amount by which the estimate for the previous six-month 
period exceeded the amount needed to fund the appropriation 
under section 41A.09, subdivision 1, for that previous six-month 
period.  If at any time during a six-month period in those 
fiscal years the amount of reduction in the transfer to the 
highway user tax distribution fund is insufficient to fund the 
appropriation under section 41A.09, subdivision 1 for that 
period, the commissioner shall transfer to the general fund from 
the highway user tax distribution fund an additional amount 
sufficient to fund the appropriation for that period, but the 
additional amount so transferred to the general fund in a 
six-month period may not exceed the amount transferred to the 
highway user tax distribution fund for that six-month period. 
    Sec. 6.  [TRANSPORTATION STUDY BOARD.] 
    Subdivision 1.  [BOARD CREATED; MEMBERSHIP.] A 
transportation study board is created to consist of the 
following members: 
    (1) four members of the senate, with not more than three of 
the same political party, appointed by the senate committee on 
committees; 
    (2) four members of the house of representatives, with not 
more than three of the same political party, appointed by the 
speaker of the house; 
    (3) thirteen members appointed by the governor, with at 
least one member but not more than two members from each 
congressional district.  The governor shall appoint members so 
that at least one member represents each of the following: 
    (i) business, commerce and industry; 
    (ii) labor; 
    (iii) agriculture; 
    (iv) tourism; 
    (v) natural resources industries; and 
    (vi) local government. 
    Vacancies on the board shall be filled by the appointing 
authority.  The board shall elect from among its members a 
chair, who must be a member of the legislature, and other 
officers as it deems necessary. 
    Subd. 2.  [STUDIES.] (a) The board shall conduct a study of 
Minnesota's surface transportation needs into the 21st century 
and recommend a program for making transportation improvements 
to meet those needs.  
    (b) The board shall consider state policy toward highways, 
transit and rail service, including: 
    (1) state transportation goals and objectives; 
    (2) the present level of transportation service in 
Minnesota and the feasibility and desirability of alternative 
levels of service; 
    (3) how statewide and regional transportation planning is 
done and investment priorities determined, and whether changes 
are needed in these processes; and 
     (4) the extent to which the state should contribute 
financially to local and regional transportation activities. 
    (c) The board shall consider methods of providing more 
cost-effective transportation service, including: 
     (1) increased use of public-private partnerships; 
     (2) present and alternative methods of relating 
transportation expenditures to benefits; 
     (3) potential cost-saving measures in the department of 
transportation, including changes in department staffing levels; 
and 
     (4) departmental procedures for bid-letting and 
establishment of design standards. 
    (d) The board shall consider whether additional funding is 
required to accomplish transportation goals and objectives, and 
if so, desirable and feasible sources of revenue, including 
non-traditional sources. 
    Subd. 3.  [COMPENSATION.] The compensation of nonlegislator 
members and their removal from office are as provided in 
Minnesota Statutes, section 15.059.  Members who are legislators 
must be compensated in the same manner as for other legislative 
meetings.  Compensation for legislators and nonlegislators must 
be paid from the appropriation in section 7, paragraph (a). 
    Subd. 4.  [REPORTS.] The board shall make a preliminary 
report to the chairs of the senate and house committees on 
transportation, the senate committee on finance and the house 
committee on appropriations not later than March 15, 1989.  The 
board shall make a final report to the legislature and governor 
on its findings and recommendations not later than January 15, 
1991. 
    Subd. 5.  [STAFF ASSISTANCE.] The commission may by 
contract obtain the services of consultants as it deems 
necessary, and all consultant contracts must be approved by the 
legislative coordinating commission.  The board may obtain the 
assistance of the legislative auditor in carrying out its 
duties.  The commissioners of transportation, administration, 
public safety and planning shall cooperate with the board in 
conducting its studies and provide assistance and information as 
the board requires. 
    Sec. 7.  [APPROPRIATION.] 
    (a) $300,000 is appropriated from the highway user tax 
distribution fund to the transportation study board for the 
purposes of section 6.  This appropriation is available until 
January 15, 1991. 
    (b) $11,933,000 is appropriated from the general fund for 
fiscal year 1989 for the purposes indicated.  One-half of the 
amounts in clauses (1) and (2) must be transferred to the funds 
indicated on July 15, 1988, and one-half on January 15, 1989. 
     (1) To the highway user tax distribution fund   $ 8,950,000
     (2) To the transit assistance fund                2,983,000
    (c) $117,000,000 is appropriated to the commissioner of 
transportation for fiscal year 1989 for highway development.  Of 
this amount: 
    $71,900,000 is from the trunk highway fund; 
    $34,600,000 is from the county state-aid highway fund; and 
    $10,500,000 is from the municipal state-aid street fund. 
    In spending this appropriation, the commissioner shall give 
priority to highway projects that were programmed for 1988-1989 
highway development but were deferred. 
    (d) $4,800,000 is appropriated to the commissioner of 
transportation for fiscal year 1989 from the trunk highway fund 
for construction support.  
    (e) $10,500,000 is appropriated to the commissioner of 
transportation for fiscal year 1989 from the trunk highway fund 
for program delivery. 
    Sec. 8.  [REPEALER.] 
    Laws 1987, chapter 268, article 18, section 5, is repealed. 
    Sec. 9.  [EFFECTIVE DATE.] 
    Sections 1, 2, and 3 are effective May 1, 1988, and apply 
to gasoline and special fuel in distributor storage on that 
date.  Section 4 is effective May 1, 1988.  Section 6 is 
effective the day following final enactment.  Sections 5, 7, and 
8 are effective July 1, 1988, except that the appropriation in 
section 7, paragraph (a), is effective the day following final 
enactment. 
    Approved April 23, 1988