1.1                          A bill for an act 
  1.2             relating to the metropolitan council and the cities of 
  1.3             Eden Prairie, Chanhassen, and Chaska; establishing the 
  1.4             southwest metro transit commission as a public 
  1.5             corporation and granting to it and the cities various 
  1.6             powers relating to public transit; amending Minnesota 
  1.7             Statutes 1994, section 473.446, by adding a 
  1.8             subdivision. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [SOUTHWEST METRO TRANSIT COMMISSION.] 
  1.11     Subdivision 1.  [DEFINITIONS.] For purposes of this section 
  1.12  and section 2, the terms defined in subdivisions 2 to 13 have 
  1.13  the meanings given them there, except as otherwise expressly 
  1.14  provided or indicated by the context. 
  1.15     Subd. 2.  [CAPITAL COST CONTRACTS.] "Capital cost contracts"
  1.16  means all contracts in effect as of the termination date and 
  1.17  entered into by the council and the commission to provide for 
  1.18  payment of any capital costs of the commission's transit system. 
  1.19     Subd. 3.  [CITIES.] "Cities" means any city or other 
  1.20  governmental unit, except the commission, that is a party to the 
  1.21  joint powers agreement. 
  1.22     Subd. 4.  [COMMISSION.] "Commission" means the southwest 
  1.23  metro transit commission created pursuant to the joint powers 
  1.24  agreement, established as a public corporation under this 
  1.25  section, whether or not renamed under the joint powers agreement.
  1.26     Subd. 5.  [COMMISSION TRANSIT SYSTEM COSTS.] "Commission 
  1.27  transit system costs" means the operating, capital, and 
  2.1   financing costs of the commission's transit system and related 
  2.2   activities, including payment of obligations issued by the 
  2.3   commission under subdivision 15. 
  2.4      Subd. 6.  [CONTRACTOR.] "Contractor" means any person who 
  2.5   provides transit services for the commission under a contract 
  2.6   with the commission. 
  2.7      Subd. 7.  [COUNCIL.] "Council" means the metropolitan 
  2.8   council established under Minnesota Statutes, section 473.123. 
  2.9      Subd. 8.  [JOINT POWERS AGREEMENT.] "Joint powers agreement"
  2.10  means the first restated joint powers agreement establishing a 
  2.11  southwest metro transit commission (formerly southwest area 
  2.12  transit commission), dated September 12, 1994, entered into by 
  2.13  the cities of Eden Prairie, Chanhassen, and Chaska, and any 
  2.14  amendments to it, including amendments that add parties to it. 
  2.15     Subd. 9.  [MARKET VALUE ADJUSTMENT RATIO.] "Market value 
  2.16  adjustment ratio" means the index for market valuation changes 
  2.17  described in Minnesota Statutes, section 473.446, as applied 
  2.18  only to the cities. 
  2.19     Subd. 10.  [REDEVELOPMENT AGENCY.] "Redevelopment agency" 
  2.20  means the entity described in Minnesota Statutes, section 
  2.21  469.048, subdivision 2. 
  2.22     Subd. 11.  [SUBSIDY CONTRACT.] "Subsidy contract" means the 
  2.23  contract, including any management plan incorporated in it by 
  2.24  reference, between the council and the commission under which 
  2.25  transit tax revenues are provided to the commission pursuant to 
  2.26  Minnesota Statutes, section 473.388, subdivision 4. 
  2.27     Subd. 12.  [TERMINATION DATE.] "Termination date" means the 
  2.28  date on which the subsidy contract is terminated under section 
  2.29  2, subdivision 2. 
  2.30     Subd. 13.  [TRANSIT TAX REVENUES.] "Transit tax revenues" 
  2.31  has the meaning given the term "tax revenues" in Minnesota 
  2.32  Statutes, section 473.388, subdivision 4, as applied only to the 
  2.33  cities. 
  2.34     Subd. 14.  [PUBLIC CORPORATION.] The commission is 
  2.35  established as a public body corporate and politic and a 
  2.36  political subdivision of the state, acting on behalf of the 
  3.1   cities in accordance with the terms of the joint powers 
  3.2   agreement and as provided in this section and in section 2.  Any 
  3.3   title or other interest acquired earlier and held at the time of 
  3.4   its establishment by the commission in any property vests in the 
  3.5   commission as a public corporation. 
  3.6      Subd. 15.  [ADDITIONAL POWERS.] For purposes of providing 
  3.7   public transit services and developing any properties acquired 
  3.8   by it in connection with those purposes, the commission may, 
  3.9   through its board of commissioners, exercise all the powers of a 
  3.10  redevelopment agency set out in Minnesota Statutes, sections 
  3.11  469.048 to 469.068, except section 469.053, as if the commission 
  3.12  were a redevelopment agency, subject to limits, if any, as 
  3.13  imposed on the exercise of the powers under the joint powers 
  3.14  agreement.  In dealing with the commission, each of the cities 
  3.15  may exercise all of the powers relating to a redevelopment 
  3.16  agency granted to a city by Minnesota Statutes, sections 469.048 
  3.17  to 469.068, or other law.  The commission may pledge and apply 
  3.18  to the payment of any obligations issued by it under this 
  3.19  subdivision any revenues or other funds received by or payable 
  3.20  to the commission under section 2, subdivision 7, or Minnesota 
  3.21  Statutes, section 473.388, subdivision 1, or may apply the funds 
  3.22  to the payment of any other commission transit system costs. 
  3.23     Sec. 2.  [DEMONSTRATION PARTNERSHIP PROGRAM.] 
  3.24     Subdivision 1.  [POLICY.] The legislature finds that the 
  3.25  commission has provided public transit services in an efficient 
  3.26  and effective manner and that the policy and goals set forth in 
  3.27  Minnesota Statutes, section 473.371, can best be met by granting 
  3.28  to the commission the powers set forth in this act and by 
  3.29  relieving the council of primary responsibility for providing 
  3.30  public transit for the cities. 
  3.31     Subd. 2.  [TERMINATION OF SUBSIDY CONTRACT AND SUBSTITUTION 
  3.32  OF PERFORMANCE STANDARDS.] The subsidy contract shall terminate 
  3.33  on July 1, 1996, except that the council shall thereafter and 
  3.34  upon receipt remit to the commission 90 percent of all transit 
  3.35  tax revenues derived from the transit tax levy made by the 
  3.36  council in 1995.  After termination, the commission shall comply 
  4.1   with any performance standards established under Minnesota 
  4.2   Statutes, section 473.375, subdivision 15, and approved by the 
  4.3   commission or, if approval cannot be secured, approved by the 
  4.4   commissioner of transportation after consulting with the council 
  4.5   and commission and a hearing on the approval, unless and to the 
  4.6   extent compliance is in any instance waived by the 
  4.7   commissioner.  The commissioner of transportation may specify 
  4.8   procedures and actions to be followed to secure approval and 
  4.9   bring the commission into compliance with the performance 
  4.10  standards. 
  4.11     Subd. 3.  [STANDSTILL AND OVERRIDE.] Before the 
  4.12  termination, action must not be taken by the council after 
  4.13  December 1, 1995, to enforce the subsidy contract or reduce or 
  4.14  delay the amount of funding contemplated under it for the 
  4.15  commission because of the funding needs of the council or 
  4.16  changes in the council's regional transit service and capital 
  4.17  plan, unless, after consulting with the council and commission, 
  4.18  the governor consents to the action.  After termination, 
  4.19  Minnesota Statutes, sections 473.371 to 473.449, do not apply to 
  4.20  the commission or cities except as otherwise provided in this 
  4.21  act. 
  4.22     Subd. 4.  [COORDINATION, CONSOLIDATION, AND SHARING OF 
  4.23  RESOURCES.] The council and commission shall cooperate with each 
  4.24  other to coordinate public transit operations within the 
  4.25  metropolitan area, and the commission shall provide the council 
  4.26  with the information the council requires for the transit 
  4.27  information program established under Minnesota Statutes, 
  4.28  section 473.371, subdivision 14.  The commission shall 
  4.29  investigate the feasibility of consolidating or sharing transit 
  4.30  services with school districts and other transit providers in 
  4.31  the region served by the commission and, if feasible and cost 
  4.32  effective, undertake to implement the transit programs. 
  4.33     Subd. 5.  [SERVICE PLAN.] Before October 2 in each year, 
  4.34  commencing October 1, 1996, the commission shall provide the 
  4.35  council with an updated service plan described in Minnesota 
  4.36  Statutes, section 473.384, subdivision 5.  The council may 
  5.1   specify procedures, including public hearing requirements, to be 
  5.2   followed by the commission in forming the service plan.  The 
  5.3   council shall evaluate the effect, if any, of the service plan 
  5.4   on the ridership, routes, schedules, fares, and staffing levels 
  5.5   of the and proposed public transit service provided by the 
  5.6   council and on the financial condition of the council's transit 
  5.7   operations. 
  5.8      Subd. 6.  [SPECIAL TRANSPORTATION MARKETS AND SERVICE.] The 
  5.9   commission shall continue to undertake programs to provide 
  5.10  better access to places of employment within the region for 
  5.11  transit-disadvantaged or dependent persons and shall coordinate 
  5.12  these programs with similar programs undertaken by the council 
  5.13  under Minnesota Statutes, section 473.387.  The commission shall 
  5.14  provide within the cities the metro mobility and other special 
  5.15  transportation service described in Minnesota Statutes, section 
  5.16  473.386, and shall coordinate these programs with similar 
  5.17  programs undertaken by the council under Minnesota Statutes, 
  5.18  section 473.386. 
  5.19     Subd. 7.  [LOCAL FUNDING OF TRANSIT SERVICES.] Local 
  5.20  funding of commission transit system costs include the following:
  5.21     (a) The commission may levy upon all taxable property 
  5.22  within each city a transit tax in an amount the commission 
  5.23  determines to be necessary to pay for the city's share of the 
  5.24  commission transit system costs.  
  5.25     (b) The transit tax revenues derived by the commission from 
  5.26  the transit tax levied within each city may not exceed: 
  5.27     (1) for taxes levied in 1996, the maximum available local 
  5.28  transit funds for the city in 1996 under Minnesota Statutes, 
  5.29  section 473.446, (i) based on taxes levied in 1995, (ii) 
  5.30  calculated as if the percentage of transit tax revenues for the 
  5.31  city were 88 percent instead of 90 percent, and (iii) multiplied 
  5.32  by the market value adjustment ratio as applied to the city only 
  5.33  for taxes levied in 1996; 
  5.34     (2) for taxes levied in 1997 and later years, the maximum 
  5.35  transit taxes that the commission may have levied in the last 
  5.36  year under this subdivision, multiplied by the market value 
  6.1   adjustment ratio for taxes levied in the current year. 
  6.2   The tax must be extended, spread, and included as a part of the 
  6.3   general taxes for state, county, and municipal purposes by the 
  6.4   county auditor, to be collected and enforced with them, together 
  6.5   with the penalty, interest, and costs.  As the tax, including 
  6.6   any penalties, interest, and costs, is collected by the county 
  6.7   treasurer it must be accumulated and kept in a separate fund to 
  6.8   be known as the "transit commission fund."  The money in the 
  6.9   fund must be turned over to the commission at the same time and 
  6.10  in the same manner that the tax collections for the city are 
  6.11  turned over to the city.  For transit taxes levied in 1996, the 
  6.12  revenues to be received by the commission and described in 
  6.13  clauses (2) and (3) of the definition of "tax revenues" in 
  6.14  Minnesota Statutes, section 473.388, subdivision 4, shall be 
  6.15  paid to the commission and calculated as if the levy were made 
  6.16  by the council for nondebt purposes only. 
  6.17     (c) In addition, each city may levy upon all taxable 
  6.18  property within the city a discretionary transit tax in any 
  6.19  additional amount the commission determines is necessary to pay 
  6.20  for the city's share of the commission transit system costs. 
  6.21     (d) Each city shall, upon receipt, remit to the commission 
  6.22  the proceeds of all transit taxes levied by the city under this 
  6.23  subdivision. 
  6.24     (e) Any transit taxes levied under this subdivision are not 
  6.25  subject to, or counted towards, any limit hereafter imposed by 
  6.26  law on the levy of taxes upon taxable property within any city 
  6.27  unless the law specifically includes the transit tax. 
  6.28     (f) At least 45 days before the commission adopts its 
  6.29  annual budget, the commission shall provide each of the cities 
  6.30  with a copy of the proposed budget.  At least ten days before 
  6.31  adoption of the budget, the governing bodies of the commission 
  6.32  and cities shall each conduct a public hearing on the proposed 
  6.33  budget.  Notice of the public hearing must be published in the 
  6.34  local official newspaper at least 15 days before the hearing. 
  6.35     Subd. 8.  [REGIONAL FUNDING OF PUBLIC TRANSIT.] The 
  6.36  commission, or any contractor, may receive financial assistance 
  7.1   from the council under Minnesota Statutes, section 473.384, if 
  7.2   the council determines that the assistance serves the public 
  7.3   transit policy and goals set forth in Minnesota Statutes, 
  7.4   section 473.371. 
  7.5      Subd. 9.  [EXEMPTION FROM TAXATION.] The properties, money, 
  7.6   and other assets of the commission are exempt from all taxation, 
  7.7   licenses, fees, or charges of any kind imposed by the state or 
  7.8   by any county, municipality, political subdivision, taxing 
  7.9   district, or other public agency or body of the state. 
  7.10     Subd. 10.  [INAPPLICABLE OVERRIDE.] The override provisions 
  7.11  in subdivision 3 do not apply to Minnesota Statutes, sections 
  7.12  473.375, subdivision 11, 473.382, and 473.399 to 473.3998. 
  7.13     Subd. 11.  [METROPOLITAN COUNCIL BONDING AND PAYMENT OF 
  7.14  CAPITAL COSTS.] After termination, the council must not remit to 
  7.15  the commission the proceeds of any bonds issued under Minnesota 
  7.16  Statutes, section 473.39, except that the council shall remit to 
  7.17  the commission proceeds of bonds required to pay commission 
  7.18  transit system costs as provided in the capital cost contracts 
  7.19  or any other contract entered into by the council under 
  7.20  subdivision 8.  Notwithstanding any other provisions in this 
  7.21  act, the commission shall take the action the council considers 
  7.22  appropriate to ensure that interest on bonds issued by the 
  7.23  council are not subject to federal income taxation under section 
  7.24  103 of the Internal Revenue Code of 1986, as amended through the 
  7.25  effective date of this act.  
  7.26     Subd. 12.  [ADDITIONAL CITIES.] The consent of the governor 
  7.27  is required for any additional city to become a party to the 
  7.28  joint powers agreement. 
  7.29     Subd. 13.  [INFORMATION FOR COUNCIL.] After the termination 
  7.30  date, the commission shall semiannually provide to the council 
  7.31  the information about the commission's public transit services 
  7.32  that the council finds necessary to determine the effectiveness 
  7.33  of the performance standards established under subdivision 2.  
  7.34  The commission shall keep and maintain all records pertaining to 
  7.35  its transit delivery system and service for a period of at least 
  7.36  three years and shall allow the council to copy and inspect all 
  8.1   of the requirement records at any time during regular business 
  8.2   hours. 
  8.3      Subd. 14.  [PUBLIC ACCOUNTANT; AUDITS.] The commission 
  8.4   shall employ public accountants to audit, examine, and report on 
  8.5   the books and records of account of the commission.  The 
  8.6   records, books, documents, and accounting procedures and 
  8.7   practices of the commission and of any contractor are subject to 
  8.8   audit and examination by the council and the legislative auditor 
  8.9   or state auditor.  Within 30 days after completion, the 
  8.10  commission shall deliver to the council a copy of any financial 
  8.11  or operational audit of the commission prepared by an accountant 
  8.12  or of a contract performed by the contractor or at the direction 
  8.13  of any governmental agency or department.  For purposes of this 
  8.14  subdivision, "public accountants" has the meaning given it in 
  8.15  Minnesota Statutes, section 412.222.  
  8.16     Subd. 15.  [INSPECTIONS.] The council may monitor, examine, 
  8.17  and investigate all elements of the transit delivery system 
  8.18  undertaken by the commission or any contractor. 
  8.19     Subd. 16.  [SURVEYS.] The council may require the 
  8.20  commission, or any contractor, to conduct the onboard passenger 
  8.21  surveys that the council determines are necessary to evaluate 
  8.22  transit services performed by it.  The surveys must be 
  8.23  administered in a manner acceptable to the council and at times 
  8.24  agreed upon by the council and the contractor. 
  8.25     Subd. 17.  [PETITION FOR SIMILAR AUTHORITY.] Any 
  8.26  governmental unit that is eligible for financial assistance 
  8.27  under Minnesota Statutes, section 473.388, subdivision 2, may 
  8.28  petition the governor to grant to the governmental unit or any 
  8.29  combination of governmental units, the powers granted to the 
  8.30  cities and commission under subdivision 7.  Upon receipt of the 
  8.31  petition, the governor shall cause a public hearing to be 
  8.32  conducted on it.  The governor may then grant the powers for six 
  8.33  consecutive tax payable years beginning with the next tax 
  8.34  payable year after the year in which the governor issues the 
  8.35  order granting the powers.  In the order, the governor must find 
  8.36  that the governmental unit or combination of units has provided 
  9.1   public transit service for the governmental units in an 
  9.2   efficient and effective manner and that granting the powers 
  9.3   advances the policies and goals set forth in Minnesota Statutes, 
  9.4   section 473.371.  If the governor grants the powers in 
  9.5   subdivision 7, as provided in this subdivision, all other 
  9.6   applicable provisions in this section also apply to the 
  9.7   governmental unit or any combination of units granted the powers 
  9.8   in subdivision 7 for the same tax payable years during which 
  9.9   subdivision 7 is made applicable, notwithstanding subdivision 18.
  9.10     Subd. 18.  [EXPIRATION.] This section, except subdivision 
  9.11  17, expires on January 1, 2002. 
  9.12     Sec. 3.  Minnesota Statutes 1994, section 473.446, is 
  9.13  amended by adding a subdivision to read: 
  9.14     Subd. 1b.  [DEDUCTION OF LOCAL TRANSIT LEVY FOR CERTAIN 
  9.15  CITIES.] For purposes of (1) extending on taxable property 
  9.16  located within any partnership city its share of the levy made 
  9.17  for general purposes under subdivision 1, paragraph (a), and (2) 
  9.18  calculating the amount of the levy to be allocated to each 
  9.19  county, the council and county auditor shall after 1995, deduct 
  9.20  from the part of the levy that would otherwise be allocated to 
  9.21  the partnership city the maximum transit tax the commission may 
  9.22  levy that year upon taxable property within the partnership city 
  9.23  under section 2, subdivision 7, paragraph (a), as if the transit 
  9.24  tax levy were part of the levy made by the council for general 
  9.25  purposes under subdivision 1, paragraph (a).  The council shall 
  9.26  notify the county auditor no later than October 1 of each year 
  9.27  of the amount of the deduction for each partnership city located 
  9.28  in the county.  For purposes of this subdivision, "partnership 
  9.29  city" means any of the "cities" as the term is defined in 
  9.30  section 1, subdivision 3, and any governmental unit granted tax 
  9.31  levying authority under section 2, subdivision 17, and 
  9.32  "commission" has the meaning given the term in section 1, 
  9.33  subdivision 4, and any combination of governmental units granted 
  9.34  tax levying authority under section 2, subdivision 17.  
  9.35     Sec. 4.  [EFFECTIVE DATE.] 
  9.36     This act is effective the day following its final 
 10.1   enactment, and after compliance by each of the governing bodies 
 10.2   of the cities of Eden Prairie, Chanhassen, and Chaska with 
 10.3   Minnesota Statutes, section 645.021, subdivision 3, with respect 
 10.4   to the act.