1.1                          A bill for an act
  1.2             relating to transportation; authorizing cities to 
  1.3             impose a transportation utility fee; proposing coding 
  1.4             for new law in Minnesota Statutes, chapter 275. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [275.084] [TRANSPORTATION UTILITY FEE.] 
  1.7      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  1.8   section, the following terms have the meanings given. 
  1.9      (1) "Municipality" means a home rule charter or statutory 
  1.10  city. 
  1.11     (2) "Governing body" means the city council of a 
  1.12  municipality. 
  1.13     (3) "Reconstruction" means paving, grading, curbs and 
  1.14  gutters, bridge repair, overlays, drainage, base work, subgrade 
  1.15  corrections, and boulevard restoration. 
  1.16     (4) "Facility upgrade" means traffic signals, turn lanes, 
  1.17  medians, street approaches, alleys, rights-of-way, sidewalks, 
  1.18  retaining walls, fence installation, and additional traffic 
  1.19  lanes. 
  1.20     (5) "Maintenance" means striping, seal coating, crack 
  1.21  sealing, sidewalk maintenance, signal maintenance, street light 
  1.22  maintenance, and signage. 
  1.23     Subd. 2.  [AUTHORIZATION.] A municipality may impose the 
  1.24  transportation utility fee provided in this section against land 
  1.25  located within its boundaries. 
  2.1      Subd. 3.  [PROCEDURES FOR ADOPTION.] A municipality may 
  2.2   impose the transportation utility fee provided in this section 
  2.3   by ordinance adopted by a two-thirds vote of its governing 
  2.4   body.  The resolution must not be voted on or adopted until 
  2.5   after a public hearing has been held on the question.  A notice 
  2.6   of the time, place, and purpose of the hearing must be published 
  2.7   at least once in each week for two successive weeks in the 
  2.8   official newspaper of the municipality, or in a newspaper of 
  2.9   general content and circulation within the municipality, and the 
  2.10  last notice must be published at least seven days prior to the 
  2.11  hearing.  The municipality, if adopted, must file the ordinance 
  2.12  of record with the county recorder, and the municipality must 
  2.13  provide a copy to the county auditor. 
  2.14     Subd. 4.  [COLLECTION.] The ordinance adopted under this 
  2.15  section must provide for the billing and payment of the fee on a 
  2.16  monthly, quarterly, or other basis as directed by the governing 
  2.17  body.  Fees that, as of October 15 each calendar year, have 
  2.18  remained unpaid for at least 30 days must be certified to the 
  2.19  county auditor for collection as a special assessment payable in 
  2.20  the following calendar year against the affected property. 
  2.21     Subd. 5.  [MASTER PLAN REQUIREMENT.] A municipality may not 
  2.22  impose the fee provided in this section unless it has prepared 
  2.23  and adopted a master plan that includes information on the 
  2.24  proposed reconstruction, facility upgrade, and maintenance for 
  2.25  the following five years.  A capital improvement plan, public 
  2.26  facility plan, or comparable information qualifies as a master 
  2.27  plan.  The master plan must include information on the proposed 
  2.28  funding sources for all projects required to be included in the 
  2.29  plan.  The master plan must be adopted by resolution of the 
  2.30  governing body following a hearing and publication of notice of 
  2.31  the hearing, as provided in subdivision 3. 
  2.32     Subd. 6.  [USE OF PROCEEDS.] Revenues from the fee 
  2.33  authorized in this section may only be used for specific 
  2.34  projects listed in the master plan and are limited to projected 
  2.35  costs of the needs approved in the master plan.  The 
  2.36  municipality may not accumulate revenues from the fee beyond the 
  3.1   estimated costs for reconstructions, facility upgrades, and 
  3.2   maintenance that are described in the master plan. 
  3.3      Subd. 7.  [TRIP GENERATION DATA.] The fee imposed must be 
  3.4   calculated based on the relationship of the revenues the 
  3.5   municipality proposes to generate and a city determined trip 
  3.6   generation rate for each type of land use. 
  3.7      Subd. 8.  [APPEALS.] A property owner may administratively 
  3.8   appeal the amount of the fee or the trip generation rate to the 
  3.9   governing body within 60 days after notice of the amount of fee 
  3.10  due has been mailed to the property owner.  The appeal must be 
  3.11  in writing, signed, and dated by the property owner, and must 
  3.12  state the reasons why the amount of the fee or the trip 
  3.13  generation rate is incorrect.  The decision of the governing 
  3.14  body may be appealed to the tax court in the same manner as 
  3.15  appeals of determinations regarding property tax matters 
  3.16  provided for in chapter 271.  If the governing body does not 
  3.17  make a decision within six months after the filing of an 
  3.18  administrative appeal, the property owner may elect to appeal to 
  3.19  tax court.  The appeal procedures in this subdivision are in 
  3.20  lieu of any appeal procedures relating to special assessments 
  3.21  provided for in chapter 429. 
  3.22     Subd. 9.  [SPECIAL ASSESSMENTS; BONDS; PROPERTY TAX 
  3.23  LEVIES.] The use of the transportation utility fee by a 
  3.24  municipality does not restrict the municipality from imposing 
  3.25  special assessments, issuing bond debt, or levying property 
  3.26  taxes to pay the costs of local street reconstruction, facility 
  3.27  upgrades, or maintenance. 
  3.28     <b>[EFFECTIVE DATE.]</b> This section is effective for fees 
  3.29  payable in 2004 and thereafter.