1.1 	A bill for an act
1.2 	relating to transportation finance; modifying and establishing certain limitations 
1.3 	on use of state funds for transit capital expenditures;amending Minnesota Statutes 
1.4 	2016, sections 16A.88, subdivision 2; 473.375, by adding a subdivision; 473.4051, 
1.5 	subdivision 3.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2016, section 16A.88, subdivision 2, is amended to read:
1.8 		Subd. 2.Metropolitan area transit account. The metropolitan area transit account is 
1.9 	established within the transit assistance fund in the state treasury. All money in the account 
1.10 	is annually appropriated to the Metropolitan Council for ~~the funding of~~ transit ~~systems~~
1.11 	system operating expenditures within the metropolitan area under sections 473.384, 473.386,
1.12 	473.387, 473.388, and 473.405 to 473.449.

1.13 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
1.14 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
1.15 	Scott, and Washington.

1.16 	Sec. 2. Minnesota Statutes 2016, section 473.375, is amended by adding a subdivision to 
1.17 	read:
1.18 		Subd. 19.Expenditure of funds for capital costs. (a) The council is prohibited from 
1.19 	expending funds for transit capital costs, including capital maintenance, from the following 
1.20 	sources:
1.21 	(1) state appropriations, including but not limited to general fund appropriations and 
1.22 	appropriations under section 16A.88, subdivision 2; and
2.1 	(2) operating budget reserves.
2.2 	(b) The expenditure prohibition under this subdivision does not apply to federal funds.

2.3 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
2.4 	final enactment for appropriations and reserves encumbered on or after that date and applies 
2.5 	in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

2.6 	Sec. 3. Minnesota Statutes 2016, section 473.4051, subdivision 3, is amended to read:
2.7 		Subd. 3.Capital costs. State money ~~may~~ must not be used ~~to pay more than ten percent~~ 
2.8 	~~of~~ for the ~~total~~ capital cost of a light rail transit project.

2.9 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
2.10 	final enactment for appropriations encumbered on or after that date and applies in the 
2.11 	counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.