1.1 	A bill for an act
1.2 	relating to transportation; establishing the governor's budget for transportation; 
1.3 	appropriating money for transportation, Metropolitan Council, and public 
1.4 	safety activities; providing for fund transfers and tort claims; establishing a 
1.5 	transportation economic development account and related regulations; clarifying 
1.6 	expenses not considered trunk highway purposes; modifying the grade crossing 
1.7 	safety account; providing authority to issue revenue bonds; establishing a 
1.8 	metropolitan area sales and use tax for transit; extending an effective date; making 
1.9 	exemptions;amending Minnesota Statutes 2012, sections 161.20, subdivision 
1.10 	3; 219.1651; 473.39, by adding a subdivision; Laws 2009, chapter 9, section 1; 
1.11 	proposing coding for new law in Minnesota Statutes, chapters 116J; 473.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	ARTICLE 1
1.14 	TRANSPORTATION APPROPRIATIONS

1.15 | Section 1.  SUMMARY OF APPROPRIATIONS.
1.16 	The amounts shown in this section summarize direct appropriations, by fund, made 
1.17 	in this act.

1.18 | | | 2014 | | 2015 | | Total
1.19 | General | $ | 67,217,000 | $ | 67,217,000 | $ | 134,434,000
1.20 | Airports | | 19,109,000 | | 19,109,000 | | 38,218,000
1.21 | C.S.A.H. | | 593,022,000 | | 603,850,000 | | 1,196,872,000
1.22 | M.S.A.S. | | 152,173,000 | | 154,491,000 | | 306,664,000
1.23 | Special Revenue | | 49,738,000 | | 49,959,000 | | 99,697,000
1.24 | Highway User | | 10,406,000 | | 10,406,000 | | 20,812,000
1.25 | Trunk Highway | | 1,710,481,000 | | 1,638,828,000 | | 3,349,309,000
1.26 | Total | $ | 2,602,146,000 | $ | 2,543,860,000 | $ | 5,146,006,000

1.27 | Sec. 2. TRANSPORTATION APPROPRIATIONS.
2.1 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.2 	agencies and for the purposes specified in this act. The appropriations are from the trunk 
2.3 	highway fund, or another named fund, and are available for the fiscal years indicated for 
2.4 	each purpose. The figures "2014" and "2015" used in this act mean that the appropriations 
2.5 	listed under them are available for the fiscal year ending June 30, 2014, or June 30, 2015, 
2.6 	respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015. 
2.7 	"The biennium" is fiscal years 2014 and 2015.

2.8 | | | | APPROPRIATIONS
2.9 | | | | Available for the Year
2.10 | | | | Ending June 30
2.11 | | | | | 2014 | | 2015

2.12

2.13

Sec. 3. DEPARTMENT OF 
TRANSPORTATION

2.14 | Subdivision 1.Total Appropriation | $ | 2,404,403,000 | $ | 2,345,815,000

2.15 | Appropriations by Fund
2.16 | | 2014 | 2015
2.17 | General | 17,186,000 | 17,105,000
2.18 | Airports | 19,109,000 | 19,109,000
2.19 | C.S.A.H. | 593,022,000 | 603,850,000
2.20 | M.S.A.S. | 152,173,000 | 154,491,000
2.21 | Trunk Highway | 1,622,913,000 | 1,551,260,000
2.22 	The amounts that may be spent for each 
2.23 	purpose are specified in the following 
2.24 	subdivisions.

2.25 | Subd. 2.Multimodal Systems | | 42,985,000 | | 42,904,000

2.26 | Appropriations by Fund
2.27 | | 2014 | 2015
2.28 | General | 17,129,000 | 17,048,000
2.29 | Airports | 19,084,000 | 19,084,000
2.30 | Trunk Highway | 6,772,000 | 6,772,000

2.31 | (a) Aeronautics | | 20,184,000 | | 20,184,000

2.32 | Appropriations by Fund
2.33 | | 2014 | 2015
2.34 | Trunk Highway | 1,100,000 | 1,100,000
2.35 | Airports | 19,084,000 | 19,084,000

2.36 | (1) Airport Development and Assistance | | 13,798,000 | | 13,798,000
3.1 	This appropriation is from the state 
3.2 	airports fund and must be spent according 
3.3 	to Minnesota Statutes, section 360.305, 
3.4 	subdivision 4.
3.5 	The base appropriation for fiscal years 2016 
3.6 	and 2017 is $14,298,000 for each year.
3.7 	Notwithstanding Minnesota Statutes, section 
3.8 	16A.28, subdivision 6, this appropriation is 
3.9 	available until expended.
3.10 	If the appropriation for either year is 
3.11 	insufficient, the appropriation for the other 
3.12 	year is available for it.

3.13 | (2) Aviation Support and Services | | 6,386,000 | | 6,386,000

3.14 | Appropriations by Fund
3.15 | | 2014 | 2015
3.16 | Airports | 5,286,000 | 5,286,000
3.17 | Trunk Highway | 1,100,000 | 1,100,000
3.18 	$65,000 in each year is from the state airports 
3.19 	fund for the Civil Air Patrol.

3.20 | (b) Transit | | 17,148,000 | | 17,067,000

3.21 | Appropriations by Fund
3.22 | | 2014 | 2015
3.23 | General | 16,373,000 | 16,292,000
3.24 | Trunk Highway | 775,000 | 775,000
3.25 	The base appropriation from the general 
3.26 	fund is $16,373,000 for fiscal year 2014 and 
3.27 	$16,292,000 for fiscal year 2015.
3.28 	$100,000 in fiscal year 2014 is from the 
3.29 	general fund for the administrative expenses 
3.30 	of the Minnesota Council on Transportation 
3.31 	Access under Minnesota Statutes, section 
3.32 	174.285.

3.33 | (c) Passenger Rail | | 500,000 | | 500,000
4.1 	This appropriation is from the general 
4.2 	fund for passenger rail system planning, 
4.3 	alternatives analysis, environmental analysis, 
4.4 	design, and preliminary engineering under 
4.5 	Minnesota Statutes, sections 174.632 to 
4.6 	174.636.

4.7 | (d) Freight | | 5,153,000 | | 5,153,000

4.8 | Appropriations by Fund
4.9 | | 2014 | 2015
4.10 | General | 256,000 | 256,000
4.11 | Trunk Highway | 4,897,000 | 4,897,000

4.12 | Subd. 3.State Roads | | 1,556,388,000 | | 1,484,735,000

4.13 | Appropriations by Fund
4.14 | | 2014 | 2015
4.15 | General | 3,000 | 3,000
4.16 | Trunk Highway | 1,556,385,000 | 1,484,732,000

4.17 | (a) Operations and Maintenance | | 262,395,000 | | 262,395,000

4.18 | (b) Program Planning and Delivery | | 206,470,000 | | 206,470,000
4.19 	$130,000 in each year is available for 
4.20 	administrative costs of the department's 
4.21 	targeted group business program.
4.22 	$266,000 in each year is available for grants 
4.23 	to metropolitan planning organizations 
4.24 	outside the seven-county metropolitan area.
4.25 	$75,000 in each year is available for a 
4.26 	transportation research contingent account 
4.27 	to finance research projects that are 
4.28 	reimbursable from the federal government or 
4.29 	from other sources. If the appropriation for 
4.30 	either year is insufficient, the appropriation 
4.31 	for the other year is available for it.
4.32 	$900,000 in each year is available for 
4.33 	grants for transportation studies outside 
4.34 	the metropolitan area to identify critical 
5.1 	concerns, problems, and issues. These 
5.2 	grants are available (1) to regional 
5.3 	development commissions; (2) in regions 
5.4 	where no regional development commission 
5.5 	is functioning, to joint powers boards 
5.6 	established under agreement of two or 
5.7 	more political subdivisions in the region to 
5.8 	exercise the planning functions of a regional 
5.9 	development commission; and (3) in regions 
5.10 	where no regional development commission 
5.11 	or joint powers board is functioning, to the 
5.12 	department's district office for that region.

5.13 | (c) State Road Construction Total | | 880,400,000 | | 806,600,000

5.14 | Appropriations by Fund
5.15 | | 2014 | 2015
5.16 | Trunk Highway | 880,400,000 | 806,600,000

5.17

5.18

(1) Economic Recovery Funds - Federal 
Highway Aid

1,000,000

1,000,000

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

5.26 | (2) State Road Construction | | 879,400,000 | | 805,400,000
5.27 	It is estimated that the appropriations for the 
5.28 	biennium will be funded as follows:

5.29 | Appropriations by Fund
5.30 | | 2014 | 2015
5.31

5.32

Federal Highway 
Aid

489,200,000

482,200,000

5.33 | Highway User Taxes | 390,200,000 | 323,200,000
5.34 	The commissioner of transportation shall 
5.35 	notify the chairs and ranking minority 
6.1 	members of the legislative committees with 
6.2 	jurisdiction over transportation finance of 
6.3 	any significant events that should cause these 
6.4 	estimates to change.
6.5 	This appropriation is for the actual 
6.6 	construction, reconstruction, and 
6.7 	improvement of trunk highways, including 
6.8 	design-build contracts and consultant usage 
6.9 	to support these activities. This includes the 
6.10 	cost of actual payment to landowners for 
6.11 	lands acquired for highway rights-of-way, 
6.12 	payment to lessees, interest subsidies, and 
6.13 	relocation expenses.
6.14 	The base appropriation is $635,000,000 in 
6.15 	fiscal year 2016 and $635,000,000 in fiscal 
6.16 	year 2017.
6.17 	The commissioner may expend up to one-half 
6.18 	of one percent of the federal appropriations 
6.19 	under this paragraph as grants to opportunity 
6.20 	industrialization centers and other nonprofit 
6.21 	job training centers for job training programs 
6.22 	related to highway construction.
6.23 	The commissioner may transfer up to 
6.24 	$15,000,000 each year to the transportation 
6.25 	revolving loan fund.
6.26 	The commissioner may receive money 
6.27 	covering other shares of the cost of 
6.28 	partnership projects. These receipts are 
6.29 	appropriated to the commissioner for these 
6.30 	projects.

6.31 | (d) Highway Debt Service | | 201,952,000 | | 204,099,000
6.32 	$192,452,000 the first year and $194,599,000 
6.33 	the second year are for transfer to the state 
6.34 	bond fund. If this appropriation is insufficient 
7.1 	to make all transfers required in the year 
7.2 	for which it is made, the commissioner of 
7.3 	management and budget shall notify the 
7.4 	Committee on Finance of the senate and 
7.5 	the Committee on Ways and Means of the 
7.6 	house of representatives of the amount of the 
7.7 	deficiency and shall then transfer that amount 
7.8 	under the statutory open appropriation. Any 
7.9 	excess appropriation cancels to the trunk 
7.10 	highway fund.

7.11 | (e) Electronic Communications | | 5,171,000 | | 5,171,000

7.12 | Appropriations by Fund
7.13 | | 2014 | 2015
7.14 | General | 3,000 | 3,000
7.15 | Trunk Highway | 5,168,000 | 5,168,000
7.16 	The general fund appropriation is to equip 
7.17 	and operate the Roosevelt signal tower for 
7.18 	Lake of the Woods weather broadcasting.

7.19 | Subd. 4.Local Roads | | 745,195,000 | | 758,341,000

7.20 | (a) County State Aid Roads | | 593,022,000 | | 603,850,000
7.21 	This appropriation is from the county 
7.22 	state-aid highway fund under Minnesota 
7.23 	Statutes, section 161.081, and chapter 162, 
7.24 	and is available until spent.
7.25 	If the commissioner of transportation 
7.26 	determines that a balance remains in the 
7.27 	county state-aid highway fund following 
7.28 	the appropriations and transfers made in 
7.29 	this subdivision, and that the appropriations 
7.30 	made are insufficient for advancing county 
7.31 	state-aid highway projects, an amount 
7.32 	necessary to advance the projects, not to 
7.33 	exceed the balance in the county state-aid 
7.34 	highway fund, is appropriated in each year 
7.35 	to the commissioner. Within two weeks 
8.1 	of a determination under this contingent 
8.2 	appropriation, the commissioner of 
8.3 	transportation shall notify the commissioner 
8.4 	of management and budget and the chairs 
8.5 	and ranking minority members of the 
8.6 	legislative committees with jurisdiction over 
8.7 	transportation finance concerning funds 
8.8 	appropriated.

8.9 | (b) Municipal State Aid Roads | | 152,173,000 | | 154,491,000
8.10 	This appropriation is from the municipal 
8.11 	state-aid street fund under Minnesota 
8.12 	Statutes, chapter 162, and is available until 
8.13 	spent.
8.14 	If the commissioner of transportation 
8.15 	determines that a balance remains in the 
8.16 	municipal state-aid street fund following the 
8.17 	appropriations and transfers made in this 
8.18 	subdivision, and that the appropriations made 
8.19 	are insufficient for advancing municipal 
8.20 	state-aid street projects, an amount necessary 
8.21 	to advance the projects, not to exceed 
8.22 	the balance in the municipal state-aid 
8.23 	street fund, is appropriated in each year 
8.24 	to the commissioner. Within two weeks 
8.25 	of a determination under this contingent 
8.26 	appropriation, the commissioner of 
8.27 	transportation shall notify the commissioner 
8.28 	of management and budget and the chairs 
8.29 	and ranking minority members of the 
8.30 	legislative committees with jurisdiction over 
8.31 	transportation finance concerning funds 
8.32 	appropriated.

8.33 | Subd. 5.Agency Management | | 59,835,000 | | 59,835,000

8.34 | Appropriations by Fund
8.35 | | 2014 | 2015
9.1 | General | 54,000 | 54,000
9.2 | Airports | 25,000 | 25,000
9.3 | Trunk Highway | 59,756,000 | 59,756,000

9.4 | (a) Agency Services | | 41,997,000 | | 41,997,000

9.5 | Appropriations by Fund
9.6 | | 2014 | 2015
9.7 | Airports | 25,000 | 25,000
9.8 | Trunk Highway | 41,972,000 | 41,972,000

9.9 | (b) Buildings | | 17,838,000 | | 17,838,000

9.10 | Appropriations by Fund
9.11 | | 2014 | 2015
9.12 | General | 54,000 | 54,000
9.13 | Trunk Highway | 17,784,000 | 17,784,000
9.14 	Any money appropriated to the commissioner 
9.15 	of transportation for building construction for 
9.16 	any fiscal year before the first year is available 
9.17 	for the commissioner of transportation 
9.18 	during the biennium to the extent that the 
9.19 	commissioner spends the money on the 
9.20 	building construction projects for which the 
9.21 	money was originally encumbered during the 
9.22 	fiscal year for which it was appropriated.

9.23 | Subd. 6.Transfers | | | |
9.24 	(a) With the approval of the commissioner of 
9.25 	management and budget, the commissioner 
9.26 	of transportation may transfer unencumbered 
9.27 	balances among the appropriations from the 
9.28 	trunk highway fund and the state airports 
9.29 	fund made in this section. No transfer 
9.30 	may be made from the appropriation for 
9.31 	state road construction. No transfer may 
9.32 	be made from the appropriations for debt 
9.33 	service to any other appropriation. Transfers 
9.34 	under this subdivision may not be made 
9.35 	between funds. Transfers between programs 
10.1 	must be reported immediately to the chairs 
10.2 	and ranking minority members of the 
10.3 	legislative committees with jurisdiction over 
10.4 	transportation finance.
10.5 	(b) The commissioner shall transfer from 
10.6 	the flexible highway account in the county 
10.7 	state-aid highway fund:
10.8 	(1) $12,700,000 in the first year to the 
10.9 	municipal state-aid street fund;
10.10 	(2) $10,000,000 in the second year to the 
10.11 	municipal turnback account in the municipal 
10.12 	state-aid street fund; and
10.13 	(3) the remainder in each year to the county 
10.14 	turnback account in the county state-aid 
10.15 	highway fund. The funds transferred are 
10.16 	for highway turnback purposes as provided 
10.17 	by Minnesota Statutes, section 161.081, 
10.18 	subdivision 3.

10.19

10.20

Subd. 7.Use of State Road Construction 
Appropriations

10.21 	Any money appropriated to the commissioner 
10.22 	of transportation for state road construction 
10.23 	for any fiscal year before fiscal year 2012 
10.24 	is available to the commissioner during the 
10.25 	biennium to the extent that the commissioner 
10.26 	spends the money on the state road 
10.27 	construction project for which the money 
10.28 	was originally encumbered during the fiscal 
10.29 	year for which it was appropriated.

10.30 | Subd. 8.Contingent Appropriation | | | |
10.31 	The commissioner of transportation, with 
10.32 	the approval of the governor and the 
10.33 	written approval of at least five members 
10.34 	of a group consisting of the members of 
11.1 	the Legislative Advisory Commission 
11.2 	under Minnesota Statutes, section 3.30, 
11.3 	and the ranking minority members of the 
11.4 	legislative committees with jurisdiction over 
11.5 	transportation finance, may transfer all or 
11.6 	part of the unappropriated balance in the 
11.7 	trunk highway fund to an appropriation (1) 
11.8 	for trunk highway design, construction, or 
11.9 	inspection in order to take advantage of an 
11.10 	unanticipated receipt of income to the trunk 
11.11 	highway fund or to take advantage of federal 
11.12 	advanced construction funding, (2) for trunk 
11.13 	highway maintenance in order to meet an 
11.14 	emergency, or (3) to pay tort or environmental 
11.15 	claims. Nothing in this subdivision 
11.16 	authorizes the commissioner to increase the 
11.17 	use of federal advanced construction funding 
11.18 	beyond amounts specifically authorized. 
11.19 	Any transfer as a result of the use of federal 
11.20 	advanced construction funding must include 
11.21 	an analysis of the effects on the long-term 
11.22 	trunk highway fund balance. The amount 
11.23 	transferred is appropriated for the purpose of 
11.24 	the account to which it is transferred.

11.25

11.26

Sec. 4. METROPOLITAN COUNCIL 
TRANSIT

$

41,489,000

$

41,570,000

11.27 | Transit | | 41,489,000 | | 41,570,000
11.28 	This appropriation is for transit system 
11.29 	operations.

11.30 | Sec. 5. PUBLIC SAFETY | | | |

11.31 | Subdivision 1.Total Appropriation | $ | 155,654,000 | $ | 155,875,000

11.32 | Appropriations by Fund
11.33 | | 2014 | 2015
11.34 | General | 8,542,000 | 8,542,000
11.35 | Trunk Highway | 86,968,000 | 86,968,000
12.1 | Highway User | 10,406,000 | 10,406,000
12.2 | Special Revenue | 49,738,000 | 49,959,000
12.3 	The amounts that may be spent for each 
12.4 	purpose are specified in the following 
12.5 	subdivisions.

12.6 | Subd. 2.Administration and Related Services | | 12,628,000 | | 12,628,000

12.7 | Appropriations by Fund
12.8 | | 2014 | 2015
12.9 | General | 4,900,000 | 4,900,000
12.10 | Trunk Highway | 6,343,000 | 6,343,000
12.11 | Highway User | 1,385,000 | 1,385,000

12.12 | (a) Office of Communications | | 504,000 | | 504,000

12.13 | Appropriations by Fund
12.14 | | 2014 | 2015
12.15 | General | 111,000 | 111,000
12.16 | Trunk Highway | 393,000 | 393,000

12.17 | (b) Public Safety Support | | 8,439,000 | | 8,439,000

12.18 | Appropriations by Fund
12.19 | | 2014 | 2015
12.20 | General | 3,467,000 | 3,467,000
12.21 | Trunk Highway | 3,606,000 | 3,606,000
12.22 | Highway User | 1,366,000 | 1,366,000
12.23 	$380,000 in each year is from the general 
12.24 	fund for payment of public safety officer 
12.25 	survivor benefits under Minnesota Statutes, 
12.26 	section 299A.44. If the appropriation for 
12.27 	either year is insufficient, the appropriation 
12.28 	for the other year is available for it.
12.29 	$1,367,000 in each year is from the general 
12.30 	fund to be deposited in the public safety 
12.31 	officer's benefit account. This money 
12.32 	is available for reimbursements under 
12.33 	Minnesota Statutes, section 299A.465.
12.34 	$600,000 in each year is from the general 
12.35 	fund and $100,000 in each year is from the 
13.1 	trunk highway fund for soft body armor 
13.2 	reimbursements under Minnesota Statutes, 
13.3 	section 299A.38.
13.4 	$792,000 in each year is from the general 
13.5 	fund for transfer by the commissioner of 
13.6 	management and budget to the trunk highway 
13.7 	fund on December 31, 2013, and December 
13.8 	31, 2014, respectively, in order to reimburse 
13.9 	the trunk highway fund for expenses not 
13.10 	related to the fund. These represent amounts 
13.11 	appropriated out of the trunk highway 
13.12 	fund for general fund purposes in the 
13.13 	administration and related services program.
13.14 	$610,000 in each year is from the highway 
13.15 	user tax distribution fund for transfer by the 
13.16 	commissioner of management and budget 
13.17 	to the trunk highway fund on December 31, 
13.18 	2013, and December 31, 2014, respectively, 
13.19 	in order to reimburse the trunk highway 
13.20 	fund for expenses not related to the fund. 
13.21 	These represent amounts appropriated out 
13.22 	of the trunk highway fund for highway 
13.23 	user tax distribution fund purposes in the 
13.24 	administration and related services program.
13.25 	$716,000 in each year is from the highway 
13.26 	user tax distribution fund for transfer by the 
13.27 	commissioner of management and budget to 
13.28 	the general fund on December 31, 2013, and 
13.29 	December 31, 2014, respectively, in order to 
13.30 	reimburse the general fund for expenses not 
13.31 	related to the fund. These represent amounts 
13.32 	appropriated out of the general fund for 
13.33 	operation of the criminal justice data network 
13.34 	related to driver and motor vehicle licensing.

13.35 | (c) Technical Support Services | | 3,685,000 | | 3,685,000

14.1 | Appropriations by Fund
14.2 | | 2014 | 2015
14.3 | General | 1,322,000 | 1,322,000
14.4 | Trunk Highway | 2,344,000 | 2,344,000
14.5 | Highway User | 19,000 | 19,000

14.6 | Subd. 3.State Patrol | | 84,616,000 | | 84,616,000

14.7 | Appropriations by Fund
14.8 | | 2014 | 2015
14.9 | General | 3,642,000 | 3,642,000
14.10 | Trunk Highway | 80,189,000 | 80,189,000
14.11 | Highway User | 785,000 | 785,000

14.12 | (a) Patrolling Highways | | 72,522,000 | | 72,522,000

14.13 | Appropriations by Fund
14.14 | | 2014 | 2015
14.15 | General | 37,000 | 37,000
14.16 | Trunk Highway | 72,393,000 | 72,393,000
14.17 | Highway User | 92,000 | 92,000

14.18 | (b) Commercial Vehicle Enforcement | | 7,796,000 | | 7,796,000
14.19 	$600,000 in each year is for the Office of 
14.20 	Pupil Transportation Safety under Minnesota 
14.21 	Statutes, section 169.435.

14.22 | (c) Capitol Security | | 3,605,000 | | 3,605,000
14.23 	This appropriation is from the general fund.
14.24 	The commissioner may not (1) spend 
14.25 	any money from the trunk highway fund 
14.26 	for capitol security or (2) permanently 
14.27 	transfer any state trooper from the patrolling 
14.28 	highways activity to capitol security.
14.29 	$500,000 in each year is appropriated from 
14.30 	the general fund to the commissioner of 
14.31 	public safety to increase security in the 
14.32 	Capitol Complex.

14.33 | (d) Vehicle Crimes Unit | | 693,000 | | 693,000
15.1 	This appropriation is from the highway user 
15.2 	tax distribution fund.
15.3 	This appropriation is to investigate 
15.4 	registration tax and motor vehicle sales tax 
15.5 	liabilities from individuals and businesses 
15.6 	that currently do not pay all taxes owed, and 
15.7 	illegal or improper activity related to sale, 
15.8 	transfer, titling, and registration of meter 
15.9 	vehicles.

15.10 | Subd. 4.Driver and Vehicle Services | | 56,621,000 | | 56,842,000

15.11 | Appropriations by Fund
15.12 | | 2014 | 2015
15.13 | Highway User | 8,236,000 | 8,236,000
15.14 | Special Revenue | 48,384,000 | 48,605,000
15.15 | Trunk Highway | 1,000 | 1,000

15.16 | (a) Vehicle Services | | 27,909,000 | | 28,007,000

15.17 | Appropriations by Fund
15.18 | | 2014 | 2015
15.19 | Highway User | 8,236,000 | 8,236,000
15.20 | Special Revenue | 19,673,000 | 19,771,000
15.21 	This appropriation is from the vehicle 
15.22 	services operating account in the special 
15.23 	revenue fund.
15.24 	$650,000 each year is for seven additional 
15.25 	positions to enhance customer service related 
15.26 	to vehicle title issuance.
15.27 	$98,000 the second year is from the special 
15.28 	revenue fund for the vehicle services 
15.29 	portion of a new telephone system. This 
15.30 	amount will transfer to the Office of 
15.31 	Enterprise Technology for construction and 
15.32 	development of the system. This is a onetime 
15.33 	appropriation and is available until expended. 
15.34 	Ongoing support costs will be incorporated 
15.35 	into a service level agreement and will be 
16.1 	paid to the Office of Enterprise Technology 
16.2 	under the rates and mechanisms specified in 
16.3 	that agreement.

16.4 | (b) Driver Services | | 28,712,000 | | 28,835,000

16.5 | Appropriations by Fund
16.6 | | 2014 | 2015
16.7 | Trunk Highway | 1,000 | 1,000
16.8 | Special Revenue | 28,711,000 | 28,834,000
16.9 	This appropriation is from the driver services 
16.10 	operating account in the special revenue fund.
16.11 	$71,000 each year is from the special revenue 
16.12 	fund for one new facial recognition position.
16.13 	$52,000 the second year is from the 
16.14 	special revenue fund for the driver services 
16.15 	portion of a new telephone system. This 
16.16 	amount will transfer to the Office of 
16.17 	Enterprise Technology for construction and 
16.18 	development of the system. This is a onetime 
16.19 	appropriation and is available until expended. 
16.20 	Ongoing support costs will be incorporated 
16.21 	into a service level agreement and will be 
16.22 	paid to the Office of Enterprise Technology 
16.23 	under the rates and mechanisms specified in 
16.24 	that agreement.

16.25 | Subd. 5.Traffic Safety | | 435,000 | | 435,000

16.26 | Subd. 6.Pipeline Safety | | 1,354,000 | | 1,354,000
16.27 	This appropriation is from the pipeline safety 
16.28 	account in the special revenue fund.

16.29 | Sec. 6. TORT CLAIMS | $ | 600,000 | $ | 600,000
16.30 	This appropriation is to the commissioner of 
16.31 	management and budget.
17.1 	If the appropriation for either year is 
17.2 	insufficient, the appropriation for the other 
17.3 	year is available for it.

17.4 	ARTICLE 2
17.5 	TRANSPORTATION POLICY

17.6 	Section 1. [116J.4365] TRANSPORTATION ECONOMIC DEVELOPMENT 
17.7 	ASSISTANCE PROGRAM.
17.8 		Subdivision 1.Program established. (a) The commissioners of transportation and 
17.9 	employment and economic development shall develop and implement a transportation 
17.10 	economic development assistance program as provided in this section, for providing 
17.11 	financial assistance on a geographically balanced basis through competitive grants 
17.12 	for projects in all modes of transportation that provide measurable local, regional, or 
17.13 	statewide economic benefit.
17.14 	(b) The commissioners of transportation and employment and economic 
17.15 	development may provide financial assistance for a transportation project at their 
17.16 	discretion, subject to the requirements of this section.
17.17 		Subd. 2.Transportation economic development account. (a) A transportation 
17.18 	economic development account is established in the special revenue fund under the 
17.19 	budgetary jurisdiction of the senate and house of representatives committees having 
17.20 	jurisdiction over transportation finance. The account consists of funds donated, allotted, 
17.21 	transferred, or otherwise provided to the account.
17.22 	(b) Money in the account may be expended only as appropriated by law.
17.23 	(c) Notwithstanding paragraph (a), the account may not contain money transferred 
17.24 	or otherwise provided from the trunk highway fund.
17.25 		Subd. 3.Program administration. In implementing the transportation economic 
17.26 	development assistance program, the commissioners of transportation and employment 
17.27 	and economic development shall make reasonable efforts to (1) publicize each solicitation 
17.28 	for applications among all eligible recipients, and (2) provide technical and informational 
17.29 	assistance in creating and submitting applications.
17.30 		Subd. 4.Economic impact performance measures. The commissioner of 
17.31 	employment and economic development shall develop economic impact performance 
17.32 	measures to analyze projects for which financial assistance under this section is being 
17.33 	applied for or has been previously provided.
17.34 		Subd. 5.Financial assistance; criteria. The commissioners of transportation and 
17.35 	employment and economic development shall establish criteria for evaluating projects 
18.1 	for financial assistance under this section. At a minimum, the criteria must provide an 
18.2 	objective method to prioritize and select projects on the basis of:
18.3 	(1) the extent to which the project provides measurable economic benefit;
18.4 	(2) consistency with relevant state and local transportation plans;
18.5 	(3) the availability and commitment of funding or in-kind assistance for the project 
18.6 	from nonpublic sources;
18.7 	(4) the need for the project as part of the overall transportation system;
18.8 	(5) the extent to which completion of the project will improve the movement of 
18.9 	people and freight; and
18.10 	(6) geographic balance as required under subdivision 7, paragraph (b).
18.11 		Subd. 6.Financial assistance; project evaluation process. (a) Following the 
18.12 	criteria established under subdivision 5, the commissioner of employment and economic 
18.13 	development shall (1) evaluate proposed projects, and (2) certify those that may receive 
18.14 	financial assistance.
18.15 	(b) As part of the project evaluation process, the commissioner of transportation 
18.16 	shall certify that a project constitutes an eligible and appropriate transportation project.
18.17 		Subd. 7.Financial assistance; awards. (a) The financial assistance awarded by the 
18.18 	commissioners of transportation and employment and economic development may not 
18.19 	exceed 70 percent of a project's total costs.
18.20 	(b) The commissioners of transportation and employment and economic development 
18.21 	shall ensure that financial assistance is provided in a manner that is balanced throughout 
18.22 	the state, including with respect to (1) the number of projects receiving funding in a 
18.23 	particular geographic location or region of the state, and (2) the total amount of financial 
18.24 	assistance provided for projects in a particular geographic location or region of the state.
18.25 		Subd. 8.Legislative report. (a) By February 1 of each odd-numbered year, the 
18.26 	commissioner of transportation, with assistance from the commissioner of employment 
18.27 	and economic development, shall submit a report on the transportation economic 
18.28 	development assistance program to the chairs and ranking minority members of the 
18.29 	house of representatives and senate committees with jurisdiction over transportation 
18.30 	policy and finance.
18.31 	(b) At a minimum, the report must:
18.32 	(1) summarize the requirements and implementation of the transportation economic 
18.33 	development assistance program established in this section;
18.34 	(2) review the criteria and economic impact performance measures used for 
18.35 	evaluation, prioritization, and selection of projects;
19.1 	(3) provide a brief overview of each project that received financial assistance under 
19.2 	the program, which must at a minimum identify:
19.3 	(i) basic project characteristics, such as funding recipient, geographic location, 
19.4 	and type of transportation modes served;
19.5 	(ii) sources and respective amounts of project funding; and
19.6 	(iii) the degree of economic benefit anticipated or observed, following the economic 
19.7 	impact performance measures established under subdivision 4;
19.8 	(4) identify the allocation of funds, including but not limited to a breakdown of total 
19.9 	project funds by transportation mode, the amount expended for administrative costs, and 
19.10 	the amount transferred to the transportation economic development assistance account;
19.11 	(5) evaluate the overall economic impact of the program consistent with the 
19.12 	accountability measurement requirements under section 116J.997; and
19.13 	(6) provide recommendations for any legislative changes related to the program.

19.14 	Sec. 2. Minnesota Statutes 2012, section 161.20, subdivision 3, is amended to read:
19.15 		Subd. 3.Trunk highway fund appropriations. The commissioner may expend 
19.16 	trunk highway funds only for trunk highway purposes. Payment of expenses related 
19.17 	to ~~Bureau of Criminal Apprehension laboratory,~~ Explore Minnesota Tourism kiosks, 
19.18 	Minnesota Safety Council, ~~tort claims,~~ driver education programs, Emergency Medical 
19.19 	Services Board, Mississippi River Parkway Commission, payments to MN.IT Services in 
19.20 	excess of actual costs incurred for trunk highway purposes, and personnel costs incurred 
19.21 	on behalf of the Governor's Office do not further a highway purpose and do not aid in the 
19.22 	construction, improvement, or maintenance of the highway system.

19.23 	Sec. 3. Minnesota Statutes 2012, section 219.1651, is amended to read:
19.24 	219.1651 GRADE CROSSING SAFETY ACCOUNT.
19.25 	A Minnesota grade crossing safety account is created in the special revenue fund, 
19.26 	consisting of money credited to the account by law. Money in the account is appropriated 
19.27 	to the commissioner of transportation for rail-highway grade crossing safety projects 
19.28 	on public streets and highways, including engineering costs. At the discretion of the 
19.29 	commissioner of transportation, money in the account at the end of each ~~fiscal year cancels~~
19.30 	 biennium may cancel to the trunk highway fund.

19.31 	Sec. 4. Minnesota Statutes 2012, section 473.39, is amended by adding a subdivision 
19.32 	to read:
20.1 		Subd. 6.Revenue bonds. (a) In addition to the other authority granted in this 
20.2 	section, the council may, by resolution, authorize the issuance and sale of its revenue 
20.3 	bonds, notes, or other obligations to provide funds to implement the council's transit 
20.4 	capital improvement program and to refund bonds issued under this subdivision.
20.5 	(b) The bonds shall be sold, issued, and secured in the manner provided in chapter 
20.6 	475 for bonds payable solely from or secured by revenues, and the council shall have the 
20.7 	same powers and duties as a municipality and its governing body in issuing bonds under 
20.8 	that chapter. The bonds shall be payable from and secured by a pledge of all or any part of 
20.9 	revenues receivable from the metropolitan area sales and use tax imposed under section 
20.10 	473.426 and associated investment earning and debt proceeds, shall not and shall state that 
20.11 	they do not represent or constitute a general obligation of the council, and shall not be 
20.12 	included in the net debt limit of any city, county, or other subdivision of the state for the 
20.13 	purpose of any net debt limitation. The bonds will be deemed payable wholly from the 
20.14 	income of revenue-producing conveniences within the meaning of section 475.58. The 
20.15 	proceeds of the bonds may also be used to fund necessary reserves and to pay credit 
20.16 	enhancement fees, issuance costs, and other financing costs during the life of the debt.
20.17 	(c) The bonds may be secured by a bond resolution, or a trust indenture entered into 
20.18 	by the council with a corporate trustee within or outside the state, which shall define the 
20.19 	revenues and bond proceeds pledged for the payment and security of the bonds. The 
20.20 	pledge shall be a valid charge on the revenues received under section 473.426. Neither the 
20.21 	state, nor any municipality or political subdivision except the council, nor any member or 
20.22 	officer or employee of the council is liable on the obligations. No mortgage or security 
20.23 	interest in any tangible real or personal property shall be granted to the bondholders or the 
20.24 	trustee, but they shall have a valid security interest in the revenues and bond proceeds 
20.25 	received by the council and pledged to the payment of the bonds. In the bond resolution or 
20.26 	trust indenture, the council may make such covenants as it determines to be reasonable for 
20.27 	the protection of the bondholders.

20.28 	Sec. 5. [473.426] METROPOLITAN AREA SALES AND USE TAX FOR 
20.29 	TRANSIT.
20.30 		Subdivision 1.Authorization; imposition. (a) Notwithstanding any law to the 
20.31 	contrary, the ........... shall impose and maintain a transit sales and use tax at a rate of 
20.32 	one-quarter of one percent on retail sales and uses taxable under chapter 297A that occur 
20.33 	within the metropolitan area.
20.34 	(b) The tax authorized in this section and the manner in which it is imposed are 
20.35 	exempt from section 297A.99, subdivisions 1, 2, 3, and 12. The provisions of section 
21.1 	297A.99 that relate to imposition, administration, collection, and enforcement apply to 
21.2 	the tax authorized in this section.
21.3 	(c) The tax authorized in this section shall not be used in determining a tax if doing 
21.4 	so will result in the total tax on lodging in the city of Minneapolis exceeding the maximum 
21.5 	allowed tax under Laws 1986, chapter 396, section 5, as amended in Laws 2001, First 
21.6 	Special Session chapter 5, article 12, section 87, or in determining a tax that may be 
21.7 	imposed under any other limitation.
21.8 		Subd. 2.Allocation of revenues. After deductions allowed under section 297A.99, 
21.9 	subdivision 11, the commissioner of revenue shall remit the proceeds of the tax imposed 
21.10 	under this section to the Metropolitan Council on a monthly basis.
21.11 		Subd. 3.Uses of tax revenue. Revenues received from the tax imposed under this 
21.12 	section may be used only for the following purposes:
21.13 	(1) to pay costs of collection;
21.14 	(2) to pay any principal, interest, or other financing costs on debt issued under 
21.15 	section 473.39, subdivision 6;
21.16 	(3) to pay operating and capital costs, including planning and project development 
21.17 	costs, of the metropolitan area transit system, including those related to sections 473.371 
21.18 	and 473.449; and
21.19 	(4) to maintain reserves for the purposes stated in clauses (1) to (3), if doing so is 
21.20 	deemed reasonable and appropriate by the Metropolitan Council.
21.21 		Subd. 4.Maintenance of tax. The tax authorized in this section must be maintained 
21.22 	and not terminated other than by legislative enactment.

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

21.25 	Sec. 6. Laws 2009, chapter 9, section 1, the effective date, is amended to read:

21.26 	EFFECTIVE DATE. This section is effective the day following final enactment, 
21.27 	and expires ~~on~~ June 30, ~~2013~~ 2016.

21.28 	Sec. 7. FINANCIAL ASSISTANCE FOR NORTHSTAR COMMUTER RAIL 
21.29 	EXPENSES; GREATER MINNESOTA.
 21.30 	The portion of the cost to provide financial assistance for the Greater Minnesota 
21.31 	Transit component of the Northstar Commuter Rail is exempt from the requirements in 
21.32 	Minnesota Statutes, section 174.24, subdivision 1.