1.1                          A bill for an act 
  1.2             relating to metropolitan government; establishing 
  1.3             four-year community-based transit service initiative 
  1.4             demonstration program; proposing coding for new law in 
  1.5             Minnesota Statutes, chapter 473. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [473.3881] [COMMUNITY-BASED TRANSIT SERVICE 
  1.8   INITIATIVE DEMONSTRATION PROGRAM.] 
  1.9      Subdivision 1.  [PROGRAM ESTABLISHED.] (a) The 
  1.10  community-based transit service initiative demonstration program 
  1.11  is established to encourage to the greatest extent possible the 
  1.12  opportunity to establish or meet one or more of the following 
  1.13  transit initiatives:  reverse commuting; high-speed busing; 
  1.14  accessible, community-based paratransit service; increasing 
  1.15  ridership on commuter-express buses; promoting the 
  1.16  implementation of Vision for Transit; travel-demand 
  1.17  management/trip reduction strategies using public transit; 
  1.18  targeting the transit disadvantaged or dependent; and, sharing 
  1.19  and coordinating resources.  
  1.20     (b) For purposes of this section, "city" includes a 
  1.21  statutory or home rule charter city, town, or combination of any 
  1.22  city or town. 
  1.23     Subd. 2.  [ELIGIBILITY.] The metropolitan council shall 
  1.24  provide assistance under the program to a city that:  
  1.25     (1) is located in the metropolitan transit taxing district 
  2.1   and is not served by the office of transit operations of the 
  2.2   council's transportation division or is served only with office 
  2.3   of transit operations bus routes that begin or end within the 
  2.4   applying city; 
  2.5      (2) has fewer than four scheduled runs of office of transit 
  2.6   operations bus service during off-peak hours, as defined in 
  2.7   section 473.408, subdivision 1; or 
  2.8      (3) has submitted an application for assistance that 
  2.9   determines that the current transit service being delivered to 
  2.10  the city is insufficient or unresponsive to the transit 
  2.11  priorities that it has established or that it desires for the 
  2.12  community.  
  2.13     Subd. 3.  [TRANSIT PROVIDER AGREEMENTS.] (a) An eligible 
  2.14  city may not operate its own, stand-alone system, but shall 
  2.15  enter into a cooperative agreement or understanding with an 
  2.16  existing transit authority or community-based transit system in 
  2.17  order to improve, expand, or replace the current delivery of 
  2.18  transit services.  A city may enter into an agreement or 
  2.19  contract with any transit system or provider that it selects to 
  2.20  provide the level and type of transit service it desires.  A 
  2.21  city may elect to have all or part of transit services provided 
  2.22  by one or more providers or systems.  
  2.23     (b) A city shall maintain its level of funding for transit 
  2.24  services at the level existing on the date of final enactment of 
  2.25  this section. 
  2.26     (c) Section 473.384 does not apply to contracts entered 
  2.27  into pursuant to this section.  
  2.28     Subd. 4.  [APPLICATION FOR FINANCIAL ASSISTANCE.] (a) An 
  2.29  application for assistance under this section must:  
  2.30     (1) describe the existing service provided to the applicant 
  2.31  by the office of transit operations, including the estimated 
  2.32  number of passengers carried and the routes, schedules, and 
  2.33  fares; 
  2.34     (2) describe the transit service proposed for funding, 
  2.35  including the anticipated number of passengers and the routes, 
  2.36  schedules, and fares; and 
  3.1      (3) indicate the amount of assistance requested for the 
  3.2   proposed demonstration services. 
  3.3      (b) A transit system or provider, with whom a city proposes 
  3.4   to enter into an agreement or understanding, may apply to 
  3.5   receive financial assistance on behalf of the eligible city. 
  3.6      Subd. 5.  [FINANCIAL ASSISTANCE.] (a) The council shall 
  3.7   grant the requested financial assistance if it determines that 
  3.8   the proposed service is consistent with the approved 
  3.9   implementation plan and is intended to replace, expand, or 
  3.10  improve the delivery of service to the applying city. 
  3.11     (b) The amount of assistance that the council shall provide 
  3.12  under this section may not exceed the sum of:  
  3.13     (1) the portion of the available local transit funds that 
  3.14  the applicant proposes to use to subsidize the proposed service; 
  3.15  and 
  3.16     (2) an amount of financial assistance bearing an identical 
  3.17  proportional relationship to the amount under clause (1) as the 
  3.18  total amount of financial assistance allotted for transit 
  3.19  operations bears to the total amount of taxes collected under 
  3.20  section 473.446.  The council shall pay the amount to be 
  3.21  provided to the recipient from the assistance the council would 
  3.22  otherwise allot to the office of transit operations.  
  3.23     (c) For purposes of this section, "available local transit 
  3.24  funds" means 90 percent of the tax revenues that would accrue to 
  3.25  the council from the tax it levies under section 473.446 in the 
  3.26  applicant city.  
  3.27     (d) For purposes of this section, "tax revenues" in the 
  3.28  city means the sum of the following: 
  3.29     (1) the nondebt spread levy, which is the total of the 
  3.30  taxes extended by application of the local tax rate for nondebt 
  3.31  purposes on the taxable net tax capacity; 
  3.32     (2) the portion of the fiscal disparity distribution levy 
  3.33  under section 473F.08, subdivision 3, attributable to nondebt 
  3.34  purposes; and 
  3.35     (3) the portion of the homestead credit and agricultural 
  3.36  credit aid and disparity reduction aid amounts under section 
  4.1   273.1398, subdivisions 2 and 3, attributable to nondebt purposes.
  4.2      Tax revenues do not include the state feathering 
  4.3   reimbursement under section 473.446. 
  4.4      (e) The council shall redistribute funds to each eligible 
  4.5   city in the amount for which each city is eligible. 
  4.6      Subd. 6.  [OTHER ASSISTANCE.] A city receiving assistance 
  4.7   under this section shall also receive assistance from the 
  4.8   council under section 473.384.  In applying for assistance under 
  4.9   that section, an applicant shall describe the portion of the 
  4.10  available local transit funds that are not obligated to 
  4.11  subsidize replacement service and that the applicant proposes to 
  4.12  use to subsidize additional service.  An applicant which has 
  4.13  exhausted its available local transit funds may use any other 
  4.14  local subsidy funds to complete the required local share.  
  4.15     Subd. 7.  [EXPIRATION.] This section expires December 31, 
  4.16  1999. 
  4.17     Sec. 2.  [EFFECTIVE DATE.] 
  4.18     Section 1 is effective the day following final enactment.