Bill Text: MN HF1740 | 2013-2014 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Metropolitan area joint powers board amended, sales tax imposed, and allocation of funds provided.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-04-19 - Committee report, to pass as amended and re-refer to Rules and Legislative Administration [HF1740 Detail]
Download: Minnesota-2013-HF1740-Introduced.html
Bill Title: Metropolitan area joint powers board amended, sales tax imposed, and allocation of funds provided.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-04-19 - Committee report, to pass as amended and re-refer to Rules and Legislative Administration [HF1740 Detail]
Download: Minnesota-2013-HF1740-Introduced.html
1.2relating to transportation; taxes; amending a joint powers board; imposing
1.3sales tax; providing for allocation of funds;amending Minnesota Statutes
1.42012, sections 297A.992; 473.39, subdivisions 1p, 1r, by adding a subdivision;
1.5proposing coding for new law in Minnesota Statutes, chapter 297A; repealing
1.6Minnesota Statutes 2012, section 473.39, subdivision 1q.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 297A.992, is amended to read:
1.9297A.992 METROPOLITANTRANSPORTATION AREA TRANSIT SALES
1.10TAX; TAX, JOINT POWERS BOARD.
1.11 Subdivision 1. Definitions. For purposes of this section, the following terms have
1.12the meanings given them:
1.13 (1) "metropolitantransportation area" means the counties participating in the joint
1.14powers agreement under subdivision 3;
1.15(2) "eligible county" means the county of Anoka, Carver, Dakota, Hennepin,
1.16Ramsey, Scott, or Washington;
1.17(3) (2) "committee" means the Grant Evaluation and Ranking System (GEARS)
1.18Committee;
1.19(4) (3) "minimum guarantee county" means any metropolitan county or eligible
1.20county that is participating in the joint powers agreement under subdivision 3, whose
1.21proportion of the annual sales tax revenue under this section collected within that county
1.22is less than or equal tothree six percent;
1.23 (4) "net transit sales tax proceeds" means the total proceeds from the sales and use
1.24taxes imposed under this section, less the deductions identified under subdivision 8; and
2.1 (5) "population" means the population, as defined in section477A.011, subdivision
2.23 , estimated or established by July 15 of the year prior to the calendar year in which
2.3the representatives will serve on the Grant Evaluation and Ranking System Committee
2.4established under subdivision 5.
2.5 Subd. 2. Authorization; rates. (a) Notwithstanding section297A.99 , subdivisions
2.61, 2, and 3, or477A.016 , or any other law, the board of a county participating in a joint
2.7powers agreement as specified in this section shall impose by resolution (1) a transportation
2.8sales and use tax at a rate of one-quarter of one percent on retail sales and uses taxable under
2.9this chapter, and (2) an excise tax of $20 per motor vehicle, as defined in section297B.01,
2.10subdivision 11 , purchased or acquired from any person engaged in the business of selling
2.11motor vehicles at retail, occurring within the jurisdiction of the taxing authority. The taxes
2.12authorized are to fund transportation improvements as specified in this section, including
2.13debt service on obligations issued to finance such improvements pursuant to subdivision 7.
2.14 (b) The tax imposed under this section is not included in determining if the total tax
2.15on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
2.16chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
2.1712, section 87, or in determining a tax that may be imposed under any other limitations.
2.18 Subd. 2a. Additional tax; rates. (a) A local sales tax is imposed in the metropolitan
2.19counties, as defined in section 473.121, subdivision 4. In order to maintain the same rate
2.20across the region, the tax is imposed in each county as follows:
2.21(1) a sales and use tax on retail sales and uses taxable under this chapter, at a rate
2.22equal to three-quarters of one percent minus the tax rate imposed by each county under
2.23subdivision 2; and
2.24(2) if not imposed by a county under subdivision 2, an excise tax of $20 per motor
2.25vehicle, as defined in section 297B.01, subdivision 11, purchased or acquired from any
2.26person engaged in the business of selling motor vehicles at retail, occurring within the
2.27jurisdiction of the county.
2.28(b) The taxes imposed under this subdivision are not included in determining if the
2.29total tax on lodging in the city of Minneapolis exceeds the maximum allowed tax under
2.30Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special Session
2.31chapter 5, article 12, section 87, and Laws 2012, chapter 299, article 3, section 3, or in
2.32determining a tax that may be imposed under any other limitations.
2.33 Subd. 3. Joint powers agreement. (a) Before imposing the taxes authorized in
2.34subdivision 2, an eligible county must declare by resolution of its county board to be part
2.35of the metropolitan transportation area and must enter into a joint powers agreement. The
2.36joint powers agreement:
3.1 (1) must form a joint powers board, as specified in subdivision 4;
3.2 (2) must provide a process that allows any eligible county, by resolution of its county
3.3board, to join the joint powers board and impose the taxes authorized in subdivision 2;
3.4 (3) may provide for withdrawal of a participating county before final termination of
3.5the agreement; and
3.6 (4) may provide for a weighted voting system for joint powers board decisions.
3.7(b) Before the taxes imposed under subdivision 2a are imposed, all counties in the
3.8metropolitan area shall enter into an amended joint powers agreement that conforms
3.9to the provisions of this section.
3.10 Subd. 4. Joint powers board. (a) The joint powers board must consist of one
3.11or more commissioners of each countythat is in the metropolitan transportation area,
3.12appointed by its county board, and the chair of the Metropolitan Council, who must have
3.13voting rights, subject to subdivision 3, clause (4). The joint powers board has the powers
3.14and duties provided in this section and section471.59 .
3.15 (b) The joint powers board may utilize no more thanthree-fourths one-half of one
3.16percent of the net transit sales tax proceedsof the taxes imposed under this section for
3.17ordinary administrative expenses incurred in carrying out the provisions of this section.
3.18Any additional administrative expenses must be paid by the participating counties.
3.19 (c) The joint powers board may establish a technical advisory group that is separate
3.20from the GEARS Committee. The group must consist of representatives of cities, counties,
3.21or public agencies, including the Metropolitan Council. The technical advisory group
3.22must be used solely for technical consultation purposes.
3.23(d) The chair of the joint powers board must be a county commissioner who is
3.24elected by the board.
3.25 Subd. 5. Grantapplication and awards; Grant Evaluation and Ranking System
3.26(GEARS) Committee process, general requirements. (a) The joint powers board shall
3.27establish a grant application process and identify the amount of available funding for grant
3.28awards. Grant applications must be submitted in a form prescribed by the joint powers
3.29board. An applicant must provide, in addition to all other information required by the joint
3.30powers board, the estimated cost of the project, the amount of the grant sought, possible
3.31sources of funding in addition to the grant sought, and identification of any federal funds
3.32that will be utilized if the grant is awarded. A grant application seeking transit capital
3.33funding must identify the source of money necessary to operate the transit improvement.
3.34 (b) The joint powers board shall establish a timeline and procedures for the award of
3.35grants, and may award grants only to the state and political subdivisions. The board shall
3.36define objective criteria for the award of grants, which must include, but not be limited to,
4.1consistency with the most recent version of the transportation policy plan adopted by the
4.2Metropolitan Council under section473.146 . The joint powers board shall maximize the
4.3availability and use of federal funds in projects funded under this section.
4.4(c) Grants must be funded by the proceeds of the taxes imposed under this section,
4.5bonds, notes, or other obligations issued by the joint powers board under subdivision 7.
4.6(d) For grants awarded in each calendar year 2014 through 2016, the board shall
4.7award grants to each minimum guarantee county in an amount that is no less than the
4.8amount calculated under paragraph (e), clauses (1) and (2).
4.9(e) For grants awarded in calendar year 2017 and in each year thereafter, the board
4.10shall award grants to each minimum guarantee county such that the average amount of
4.11grant awards to that county over that year and the previous three years, is no less than:
4.12(1) the total amount of grant awards for that year; times
4.13(2) (i) the amount of revenue from the state general sales and use taxes under chapter
4.14297A collected within that county in the previous year, divided by
4.15(ii) the amount of revenue from the state general sales and use taxes under chapter
4.16297A collected within all metropolitan counties in the previous year.
4.17 Subd. 5a. Grant awards; Grant Evaluation and Ranking System (GEARS)
4.18Committee.(c) (a) The joint powers board shall establish a GEARS Committee, which
4.19must consist of:
4.20 (1) one county commissioner from each countythat is in the metropolitan
4.21transportation area, appointed by its county board;
4.22 (2) one elected city representative from each countythat is in the metropolitan
4.23transportation area;
4.24 (3) one additional elected city representative from each county for every additional
4.25400,000 in population, or fraction of 400,000, in the county that is above 400,000 in
4.26population; and
4.27 (4) the chair of the Metropolitan Council Transportation Committee.
4.28(d) (b) Each city representative must be elected at a meeting of cities in the
4.29metropolitantransportation area, which must be convened for that purpose by the
4.30Association of Metropolitan Municipalities.
4.31(e) (c) The committee shall:
4.32 (1) evaluate grant applications following objective criteria established by the joint
4.33powers board, and must;
4.34 (2) provide to the joint powers board a selection list of transportation projects that
4.35includes a priority ranking; and
5.1 (3) annually evaluate and award grants to local units of government including
5.2park districts for construction and maintenance of regional bicycle, trail, and pedestrian
5.3infrastructure.
5.4(d) Grants awarded by the committee under paragraph (c), clause (3), are not subject
5.5to approval by the board. Annually, the committee shall award grants in a total amount that
5.6equals at least 3.2 percent, but no more than 3.5 percent, of the net transit sales tax proceeds.
5.7 Subd. 5b. Grant awards; consistency with transportation plans.(f) A grant
5.8award for a transit project located within the metropolitan area, as defined in section
5.9473.121, subdivision 2
, may be funded only after the Metropolitan Council reviews the
5.10project for consistency with the transit portion of the Metropolitan Council policy plan
5.11and one of the following occurs:
5.12 (1) the Metropolitan Council finds the project to be consistent;
5.13 (2) the Metropolitan Council initially finds the project to be inconsistent, but after a
5.14good faith effort to resolve the inconsistency through negotiations with the joint powers
5.15board, agrees that the grant award may be funded; or
5.16 (3) the Metropolitan Council finds the project to be inconsistent, and submits the
5.17consistency issue for final determination to a panel, which determines the project to be
5.18consistent. The panel is composed of a member appointed by the chair of the Metropolitan
5.19Council, a member appointed by the joint powers board, and a member agreed upon by
5.20both the chair and the joint powers board.
5.21(g) Grants must be funded by the proceeds of the taxes imposed under this section,
5.22bonds, notes, or other obligations issued by the joint powers board under subdivision 7.
5.23(h) Notwithstanding the provisions of this section except subdivision 6a, of
5.24the revenue collected under this section, the joint powers board shall allocate to the
5.25Metropolitan Council, in fiscal years 2012 and 2013, an amount not less than 75 percent of
5.26the net cost of operations for those transit ways that were receiving metropolitan sales tax
5.27funds through an operating grant agreement on June 30, 2011.
5.28(i) The Metropolitan Council shall expend any funds allocated under paragraph (h)
5.29for the operations of the specified transit ways solely within those counties that are in the
5.30metropolitan transportation area.
5.31(j) Nothing in paragraph (h) or (i) prevents grant awards to the Metropolitan Council
5.32for capital and operating assistance for transit ways and park-and-ride facilities.
5.33 Subd. 6.Allocation of Grant awards; eligible uses. (a) The board must allocate
5.34grant awards only for the followingtransit purposes:
5.35(1) transit way development and operations, consisting of:
6.1 (i) capital improvements to transit ways, including, but not limited to, commuter
6.2rail rolling stock, light rail vehicles, and transit way buses;
6.3 (ii) capital costs for park-and-ride facilities, as defined in section174.256 ,
6.4subdivision 2;
6.5 (iii) feasibility studies, planning, alternatives analyses, environmental studies,
6.6engineering, property acquisition for transit way purposes, and construction of transit
6.7ways; and
6.8 (iv) operating assistance for transit ways; and
6.9 (2) as specified under subdivision 5a.
6.10(b) The joint powers board must annually award grants to each minimum guarantee
6.11county in an amount no less than the amount of sales tax revenue collected within that
6.12county.
6.13(c) No more than 1.25 percent of the total awards may be annually allocated for
6.14planning, studies, design, construction, maintenance, and operation of pedestrian programs
6.15and bicycle programs and pathways.
6.16 Subd. 6a. Priority of fund uses. The joint powers board shall allocate all revenues
6.17from the taxes imposed under this section in conformance with the following priority order:
6.18(1) payment of debt service necessary for the fiscal year on bonds or other
6.19obligations issued prior to January 1, 2011, under subdivision 7; and
6.20(2) as otherwise authorized under this section.
6.21 Subd. 7. Bonds. (a) The joint powers board or any county, acting under a joint
6.22powers agreement as specified in this section, may, by resolution, authorize, issue, and sell
6.23its bonds, notes, or other obligations for the purpose of funding grants under subdivision
6.246. The joint powers board or county may also, by resolution, issue bonds to refund the
6.25bonds issued pursuant to this subdivision.
6.26 (b) The bonds of the joint powers board must be limited obligations, payable solely
6.27from or secured by taxes levied under this section.
6.28 (c) The bonds of any county may be limited obligations, payable solely from or
6.29secured by taxes levied under this section. A county may also pledge its full faith, credit,
6.30and taxing power as additional security for the bonds.
6.31 (d) Bonds may be issued in one or more series and sold without an election. The bonds
6.32shall be secured, bear the interest rate or rates or a variable rate, have the rank or priority,
6.33be executed in the manner, be payable in the manner, mature, and be subject to the defaults,
6.34redemptions, repurchases, tender options, or other terms, and shall be sold in such manner
6.35as the joint powers board, the regional railroad authority, or the county may determine.
7.1 (e) The joint powers board or any regional railroad authority or any county may
7.2enter into and perform all contracts deemed necessary or desirable by it to issue and secure
7.3the bonds, including an indenture of trust with a trustee within or without the state.
7.4 (f) Except as otherwise provided in this subdivision, the bonds must be issued and
7.5sold in the manner provided under chapter 475.
7.6 (g) The joint powers board or any regional railroad authority wholly within the
7.7metropolitan transportation area also may authorize, issue, and sell its bonds, notes, or
7.8other obligations for the purposes, and in accordance with the procedures, set forth in
7.9section398A.07 to fund grants as provided in subdivision 6. The bonds of any regional
7.10railroad authority may be limited obligations, payable solely from or secured by taxes
7.11levied under this section. A regional railroad authority may also pledge its taxing powers
7.12as additional security for the bonds.
7.13 Subd. 7a. Debt service statement. The joint powers board shall, by October
7.141 annually, submit to the commissioner of revenue a debt service statement, which
7.15must specify an amount equal to the total amount necessary to pay debt service in the
7.16subsequent calendar year on bonds or other obligations issued prior to January 1, 2011,
7.17under subdivision 7. The debt service statement must include identification of the amount
7.18necessary in each month for the payments.
7.19 Subd. 8.Allocation Remittance of revenues. After the deductions allowed in
7.20section297A.99 , subdivision 11, the commissioner of revenue shall remit the net proceeds
7.21of the taxes imposed under this section on a monthly basis, asdirected by the joint powers
7.22board under this section provided under section 297A.9925.
7.23 Subd. 9. Administration, collection, enforcement. Except as otherwise provided
7.24in this section, the provisions of section297A.99, subdivisions 4 and 6 to 12a, govern the
7.25administration, collection, and enforcement of the tax authorized under this section.
7.26 Subd. 10. Termination of local option taxes. (a) The taxes imposed undersection
7.27297A.99, subdivision 1, subdivision 2 by a county that withdraws from the joint powers
7.28agreement pursuant to subdivision 3, clause (3), shall terminate when the county has
7.29satisfied its portion, as defined in the joint powers agreement, of all outstanding bonds or
7.30obligations entered into while the county was a member of the agreement.
7.31 (b) If the joint powers agreement under subdivision 3 is terminated, the taxes
7.32imposed undersection
297A.99, subdivision 1
7.33termination will terminate when all outstanding bonds or obligations are satisfied. The
7.34auditors of the counties in which the taxes are imposed shall see to the administration of
7.35this paragraph.
8.1 Subd. 11. Report. The joint powers board shall report annually by February 1 to the
8.2house of representatives and senate chairs and ranking minority members of the legislative
8.3 committees having jurisdiction over transportation policy and finance concerningthe
8.4 (1) board activities and actions, (2) bonds authorized or issued under subdivision 7, (3)
8.5 revenues received, and (4) grants awarded.
8.6 Subd. 12. Grant awards to Metropolitan Council. Any grant award under this
8.7section made to the Metropolitan Council must supplement, and must not supplant,
8.8operating and capital assistance provided by the state.
8.9EFFECTIVE DATE.This section is effective July 1, 2013, for sales and purchases
8.10made after June 30, 2013, except that the imposition of the tax under subdivision 2a shall
8.11be on the first day of the calendar quarter beginning at least 60 days after the date of final
8.12enactment. This section applies in the counties of Anoka, Carver, Dakota, Hennepin,
8.13Ramsey, Scott, and Washington.
8.14 Sec. 2. [297A.9925] METROPOLITAN AREA TRANSIT SALES TAX;
8.15ALLOCATION OF FUNDS.
8.16 Subdivision 1. Definitions. For purposes of this section, the following terms have
8.17the meanings given them:
8.18(1) "board" means the joints powers board established under section 297A.992; and
8.19(2) "net transit sales tax proceeds" has the meaning given in section 297A.992,
8.20subdivision 1.
8.21 Subd. 2. Allocation formula. In the manner specified under subdivision 6, the
8.22commissioner of revenue shall remit the net transit sales tax proceeds as follows:
8.23(1) the amount specified in the debt service statement under section 297A.992,
8.24subdivision 7a, to the joint powers board under section 297A.992;
8.25(2) a base funding level, as follows:
8.26(i) $66,600,000 in calendar year 2014, and $78,200,000 in calendar year 2015 and
8.27each year thereafter, to the Metropolitan Council for transit operations under chapter
8.28473; and
8.29(ii) $95,800,000 in calendar year 2014, and $96,700,000 in calendar year 2015 and
8.30each year thereafter, to the board for the purposes specified in this section and section
8.31297A.992; and
8.32(3) the remaining revenues following the allocations under clauses (1) and (2), to the
8.33board, the council, or both, as specified in the joint certification under subdivision 2.
8.34 Subd. 3. Joint certification. (a) The board and the Metropolitan Council shall
8.35annually develop a joint certification for submission to the commissioner of revenue as
9.1provided in this subdivision. The joint certification must be separately adopted by the
9.2board and by the council.
9.3(b) The commissioner of revenue shall estimate the net transit sales tax proceeds,
9.4and by October 15 annually, provide to the board and the council an estimate of allocations
9.5under subdivision 2.
9.6(c) If the commissioner does not receive a joint certification by December 1, the
9.7commissioner may not remit the proceeds identified under subdivision 2, clause (3),
9.8except as provided by a legislatively enacted appropriation.
9.9(d) The joint certification must specify:
9.10(1) total allocation between the council and the board of estimated net transit sales
9.11tax proceeds available under the certification, for the following calendar year;
9.12(2) the total budgeted operations and maintenance costs of each transit way that will
9.13be in revenue operations during the following calendar year; and
9.14(3) a base funding level established under paragraph (e), if any.
9.15(e) Notwithstanding subdivision 1, a joint certification may establish a base funding
9.16level that supersedes the amounts specified in subdivision 2, clause (2), item (i) or (ii), or
9.17both.
9.18(f) A joint certification may not exceed the estimated net transit sales tax proceeds
9.19less (1) the allocation required under subdivision 2, clause (1); and (2) a base funding level
9.20under subdivision 2, clause (2), or identified under paragraph (e).
9.21(g) By December 15 annually, the board shall electronically submit a copy of any
9.22joint certification to the chairs and ranking minority members of the legislative committees
9.23with jurisdiction over transportation policy and finance. If the commissioner does not
9.24receive a joint certification, the commissioner shall, by December 15 of that year, submit
9.25a notification to the chairs and ranking minority members of the legislative committees
9.26with jurisdiction over transportation policy and finance.
9.27 Subd. 4. Uses and priorities; Metropolitan Council. The Metropolitan Council
9.28shall use all funds remitted to the council under this section in the following priority order:
9.29(1) payment of debt service on bonds or other obligations for transit capital, if
9.30another source of funds for such payment is not otherwise identified;
9.31(2) continuation of bus and rail transit operations, including but not limited to
9.32operations and maintenance of all transit ways under revenue operations; and
9.33(3) transit improvements in accordance with the council's transit planning,
9.34including but not limited to expansion and upgrades of bus service and related amenities,
9.35development of arterial bus rapid transit and streetcars as appropriate, and maintenance of
9.36affordable transit fares.
10.1 Subd. 5. Uses and priorities; joint powers board. The board shall use all funds
10.2remitted to the board under this section as provided in section 297A.992.
10.3 Subd. 6. Remittance schedule. The commissioner of revenue shall remit the net
10.4transit sales tax proceeds on a monthly basis, in amounts that are proportional to the total
10.5being remitted for the year under subdivision 2, provided that the amount remitted in each
10.6month under subdivision 2, clause (1), may not be less than the amount necessary for that
10.7month as specified in the debt service statement under section 297A.992, subdivision
10.87a. The commissioner may adjust monthly remittance to account for variation between
10.9estimated and actual collections, whether during the calendar year in which collections
10.10occur or in the following calendar year.
10.11 Subd. 7. Transition. Notwithstanding subdivision 2, for collections from July 1,
10.122013, through December 31, 2013, the commissioner of revenue shall remit the net transit
10.13sales tax proceeds as follows:
10.14(1) $33,300,000 to the Metropolitan Council for transit operations under chapter
10.15473; and
10.16(2) $53,900,000 to the board for the purposes specified in this section and section
10.17297A.992.
10.18EFFECTIVE DATE.This section is effective July 1, 2013, and applies in the
10.19counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
10.20 Sec. 3. Minnesota Statutes 2012, section 473.39, is amended by adding a subdivision
10.21to read:
10.22 Subd. 6. Revenue bonds. (a) In addition to other authority under this section, the
10.23council may, by resolution, authorize the issuance and sale of its revenue bonds, notes, or
10.24other obligations to provide funds to implement the council's transit capital improvement
10.25program and to refund bonds issued under this subdivision.
10.26(b) The bonds shall be sold, issued, and secured in the manner provided in chapter
10.27475 for bonds payable solely from or secured by revenues, and the council shall have
10.28the same powers and duties as a municipality and its governing body in issuing bonds
10.29under that chapter. The bonds (1) shall be payable from and secured by a pledge of
10.30all or any part of revenues receivable to the council from the metropolitan area transit
10.31sales tax imposed under section 297A.992 and allocated under section 297A.9925, and
10.32associated investment earnings on debt proceeds; (2) shall not, and shall state they do not,
10.33represent or constitute a general obligation of the council; and (3) shall not be included
10.34in the net debt of any city, county, or other subdivision of the state for the purpose of
10.35any net debt limitation. The bonds will be deemed payable wholly from the income of
11.1revenue-producing conveniences within the meaning of section 475.58. The proceeds of
11.2the bonds may also be used to fund necessary reserves and to pay credit enhancement fees,
11.3issuance costs, and other financing costs during the life of the debt.
11.4(c) The bonds may be secured by a bond resolution, or a trust indenture entered into
11.5by the council with a corporate trustee within or outside the state, which shall define the
11.6revenues and bond proceeds pledged for the payment and security of the bonds. The
11.7pledge shall be a valid charge on the revenues received by the council under section
11.8297A.9925. Neither the state, nor any municipality or political subdivision except the
11.9council, nor any member, officer, or employee of the council, is liable on the obligations.
11.10No mortgage of or security interest in any tangible real or personal property shall be
11.11granted to the bondholders or the trustee, but they shall have a valid security interest in the
11.12revenues and bond proceeds received by the council and pledged to the payment of the
11.13bonds. In the bond resolution or trust indenture, the council may make such covenants as
11.14it determines to be reasonable for the protection of the bondholders, including a covenant
11.15to issue general obligation bonds to refund the revenue bonds if and to the extent required
11.16to pay principal and interest on the bonds.
11.17EFFECTIVE DATE.This section is effective the day following final enactment,
11.18and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
11.19Washington.
11.20 Sec. 4. Minnesota Statutes 2012, section 473.39, subdivision 1p, is amended to read:
11.21 Subd. 1p. Obligations; additional authority after July 1, 2010. After July 1,
11.222010, in addition to other authority in this section, the council may issue certificates of
11.23indebtedness, bonds, or other obligations under this section in an amount not exceeding
11.24$34,600,000 $25,900,000 for capital expenditures as prescribed in the council's transit
11.25capital improvement program and for related costs, including the costs of issuance and
11.26sale of the obligations.
11.27EFFECTIVE DATE.This section is effective the day following final enactment,
11.28and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
11.29Washington.
11.30 Sec. 5. Minnesota Statutes 2012, section 473.39, subdivision 1r, is amended to read:
11.31 Subd. 1r. Obligations. After July 1, 2012, in addition to other authority under this
11.32section, the council may issue certificates of indebtedness, bonds, or other obligations under
11.33this section in an amount not exceeding$39,600,000 for capital expenditures as prescribed
12.1in the council's transit capital improvement program and for related costs, including the
12.2costs of issuance and sale of the obligations. Of this authorization, up to $4,200,000 may
12.3be made available, to fund capital projects in amounts that would have otherwise been
12.4funded using replacement transit service provider reserves that were reduced in 2012 as a
12.5result of Laws 2011, First Special Session chapter 3, article 1, section 4.
12.6EFFECTIVE DATE.This section is effective the day following final enactment,
12.7and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
12.8Washington.
12.9 Sec. 6. REPEALER.
12.10Minnesota Statutes 2012, section 473.39, subdivision 1q, is repealed.
1.3sales tax; providing for allocation of funds;amending Minnesota Statutes
1.42012, sections 297A.992; 473.39, subdivisions 1p, 1r, by adding a subdivision;
1.5proposing coding for new law in Minnesota Statutes, chapter 297A; repealing
1.6Minnesota Statutes 2012, section 473.39, subdivision 1q.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 297A.992, is amended to read:
1.9297A.992 METROPOLITAN
1.10TAX; TAX, JOINT POWERS BOARD.
1.11 Subdivision 1. Definitions. For purposes of this section, the following terms have
1.12the meanings given them:
1.13 (1) "metropolitan
1.14
1.15
1.16Ramsey, Scott, or Washington;
1.17
1.18Committee;
1.19
1.20county that is participating in the joint powers agreement under subdivision 3, whose
1.21proportion of the annual sales tax revenue under this section collected within that county
1.22is less than or equal to
1.23 (4) "net transit sales tax proceeds" means the total proceeds from the sales and use
1.24taxes imposed under this section, less the deductions identified under subdivision 8; and
2.1 (5) "population" means the population, as defined in section
2.23
2.3the representatives will serve on the Grant Evaluation and Ranking System Committee
2.4established under subdivision 5.
2.5 Subd. 2. Authorization; rates. (a) Notwithstanding section
2.61, 2, and 3, or
2.7powers agreement as specified in this section shall impose by resolution (1) a transportation
2.8sales and use tax at a rate of one-quarter of one percent on retail sales and uses taxable under
2.9this chapter, and (2) an excise tax of $20 per motor vehicle, as defined in section
2.10subdivision 11
2.11motor vehicles at retail, occurring within the jurisdiction of the taxing authority. The taxes
2.12authorized are to fund transportation improvements as specified in this section, including
2.13debt service on obligations issued to finance such improvements pursuant to subdivision 7.
2.14 (b) The tax imposed under this section is not included in determining if the total tax
2.15on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
2.16chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
2.1712, section 87, or in determining a tax that may be imposed under any other limitations.
2.18 Subd. 2a. Additional tax; rates. (a) A local sales tax is imposed in the metropolitan
2.19counties, as defined in section 473.121, subdivision 4. In order to maintain the same rate
2.20across the region, the tax is imposed in each county as follows:
2.21(1) a sales and use tax on retail sales and uses taxable under this chapter, at a rate
2.22equal to three-quarters of one percent minus the tax rate imposed by each county under
2.23subdivision 2; and
2.24(2) if not imposed by a county under subdivision 2, an excise tax of $20 per motor
2.25vehicle, as defined in section 297B.01, subdivision 11, purchased or acquired from any
2.26person engaged in the business of selling motor vehicles at retail, occurring within the
2.27jurisdiction of the county.
2.28(b) The taxes imposed under this subdivision are not included in determining if the
2.29total tax on lodging in the city of Minneapolis exceeds the maximum allowed tax under
2.30Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special Session
2.31chapter 5, article 12, section 87, and Laws 2012, chapter 299, article 3, section 3, or in
2.32determining a tax that may be imposed under any other limitations.
2.33 Subd. 3. Joint powers agreement. (a) Before imposing the taxes authorized in
2.34subdivision 2, an eligible county must declare by resolution of its county board to be part
2.35of the metropolitan transportation area and must enter into a joint powers agreement. The
2.36joint powers agreement:
3.1 (1) must form a joint powers board, as specified in subdivision 4;
3.2 (2) must provide a process that allows any eligible county, by resolution of its county
3.3board, to join the joint powers board and impose the taxes authorized in subdivision 2;
3.4 (3) may provide for withdrawal of a participating county before final termination of
3.5the agreement; and
3.6 (4) may provide for a weighted voting system for joint powers board decisions.
3.7(b) Before the taxes imposed under subdivision 2a are imposed, all counties in the
3.8metropolitan area shall enter into an amended joint powers agreement that conforms
3.9to the provisions of this section.
3.10 Subd. 4. Joint powers board. (a) The joint powers board must consist of one
3.11or more commissioners of each county
3.12appointed by its county board, and the chair of the Metropolitan Council, who must have
3.13voting rights, subject to subdivision 3, clause (4). The joint powers board has the powers
3.14and duties provided in this section and section
3.15 (b) The joint powers board may utilize no more than
3.16percent of the net transit sales tax proceeds
3.17ordinary administrative expenses incurred in carrying out the provisions of this section.
3.18Any additional administrative expenses must be paid by the participating counties.
3.19 (c) The joint powers board may establish a technical advisory group that is separate
3.20from the GEARS Committee. The group must consist of representatives of cities, counties,
3.21or public agencies, including the Metropolitan Council. The technical advisory group
3.22must be used solely for technical consultation purposes.
3.23(d) The chair of the joint powers board must be a county commissioner who is
3.24elected by the board.
3.25 Subd. 5. Grant
3.26
3.27establish a grant application process and identify the amount of available funding for grant
3.28awards. Grant applications must be submitted in a form prescribed by the joint powers
3.29board. An applicant must provide, in addition to all other information required by the joint
3.30powers board, the estimated cost of the project, the amount of the grant sought, possible
3.31sources of funding in addition to the grant sought, and identification of any federal funds
3.32that will be utilized if the grant is awarded. A grant application seeking transit capital
3.33funding must identify the source of money necessary to operate the transit improvement.
3.34 (b) The joint powers board shall establish a timeline and procedures for the award of
3.35grants, and may award grants only to the state and political subdivisions. The board shall
3.36define objective criteria for the award of grants, which must include, but not be limited to,
4.1consistency with the most recent version of the transportation policy plan adopted by the
4.2Metropolitan Council under section
4.3availability and use of federal funds in projects funded under this section.
4.4(c) Grants must be funded by the proceeds of the taxes imposed under this section,
4.5bonds, notes, or other obligations issued by the joint powers board under subdivision 7.
4.6(d) For grants awarded in each calendar year 2014 through 2016, the board shall
4.7award grants to each minimum guarantee county in an amount that is no less than the
4.8amount calculated under paragraph (e), clauses (1) and (2).
4.9(e) For grants awarded in calendar year 2017 and in each year thereafter, the board
4.10shall award grants to each minimum guarantee county such that the average amount of
4.11grant awards to that county over that year and the previous three years, is no less than:
4.12(1) the total amount of grant awards for that year; times
4.13(2) (i) the amount of revenue from the state general sales and use taxes under chapter
4.14297A collected within that county in the previous year, divided by
4.15(ii) the amount of revenue from the state general sales and use taxes under chapter
4.16297A collected within all metropolitan counties in the previous year.
4.17 Subd. 5a. Grant awards; Grant Evaluation and Ranking System (GEARS)
4.18Committee.
4.19must consist of:
4.20 (1) one county commissioner from each county
4.21
4.22 (2) one elected city representative from each county
4.23
4.24 (3) one additional elected city representative from each county for every additional
4.25400,000 in population, or fraction of 400,000, in the county that is above 400,000 in
4.26population; and
4.27 (4) the chair of the Metropolitan Council Transportation Committee.
4.28
4.29metropolitan
4.30Association of Metropolitan Municipalities.
4.31
4.32 (1) evaluate grant applications following objective criteria established by the joint
4.33powers board
4.34 (2) provide to the joint powers board a selection list of transportation projects that
4.35includes a priority ranking; and
5.1 (3) annually evaluate and award grants to local units of government including
5.2park districts for construction and maintenance of regional bicycle, trail, and pedestrian
5.3infrastructure.
5.4(d) Grants awarded by the committee under paragraph (c), clause (3), are not subject
5.5to approval by the board. Annually, the committee shall award grants in a total amount that
5.6equals at least 3.2 percent, but no more than 3.5 percent, of the net transit sales tax proceeds.
5.7 Subd. 5b. Grant awards; consistency with transportation plans.
5.8award for a transit project located within the metropolitan area, as defined in section
5.10project for consistency with the transit portion of the Metropolitan Council policy plan
5.11and one of the following occurs:
5.12 (1) the Metropolitan Council finds the project to be consistent;
5.13 (2) the Metropolitan Council initially finds the project to be inconsistent, but after a
5.14good faith effort to resolve the inconsistency through negotiations with the joint powers
5.15board, agrees that the grant award may be funded; or
5.16 (3) the Metropolitan Council finds the project to be inconsistent, and submits the
5.17consistency issue for final determination to a panel, which determines the project to be
5.18consistent. The panel is composed of a member appointed by the chair of the Metropolitan
5.19Council, a member appointed by the joint powers board, and a member agreed upon by
5.20both the chair and the joint powers board.
5.21
5.22
5.23
5.24
5.25
5.26
5.27
5.28
5.29
5.30
5.31
5.32
5.33 Subd. 6.
5.34grant awards only for the following
5.35(1) transit way development and operations, consisting of:
6.1 (i) capital improvements to transit ways, including, but not limited to, commuter
6.2rail rolling stock, light rail vehicles, and transit way buses;
6.3 (ii) capital costs for park-and-ride facilities, as defined in section
6.4subdivision 2;
6.5 (iii) feasibility studies, planning, alternatives analyses, environmental studies,
6.6engineering, property acquisition for transit way purposes, and construction of transit
6.7ways; and
6.8 (iv) operating assistance for transit ways; and
6.9 (2) as specified under subdivision 5a.
6.10
6.11
6.12
6.13
6.14
6.15
6.16 Subd. 6a. Priority of fund uses. The joint powers board shall allocate all revenues
6.17from the taxes imposed under this section in conformance with the following priority order:
6.18(1) payment of debt service necessary for the fiscal year on bonds or other
6.19obligations issued prior to January 1, 2011, under subdivision 7; and
6.20(2) as otherwise authorized under this section.
6.21 Subd. 7. Bonds. (a) The joint powers board or any county, acting under a joint
6.22powers agreement as specified in this section, may, by resolution, authorize, issue, and sell
6.23its bonds, notes, or other obligations for the purpose of funding grants under subdivision
6.246. The joint powers board or county may also, by resolution, issue bonds to refund the
6.25bonds issued pursuant to this subdivision.
6.26 (b) The bonds of the joint powers board must be limited obligations, payable solely
6.27from or secured by taxes levied under this section.
6.28 (c) The bonds of any county may be limited obligations, payable solely from or
6.29secured by taxes levied under this section. A county may also pledge its full faith, credit,
6.30and taxing power as additional security for the bonds.
6.31 (d) Bonds may be issued in one or more series and sold without an election. The bonds
6.32shall be secured, bear the interest rate or rates or a variable rate, have the rank or priority,
6.33be executed in the manner, be payable in the manner, mature, and be subject to the defaults,
6.34redemptions, repurchases, tender options, or other terms, and shall be sold in such manner
6.35as the joint powers board, the regional railroad authority, or the county may determine.
7.1 (e) The joint powers board or any regional railroad authority or any county may
7.2enter into and perform all contracts deemed necessary or desirable by it to issue and secure
7.3the bonds, including an indenture of trust with a trustee within or without the state.
7.4 (f) Except as otherwise provided in this subdivision, the bonds must be issued and
7.5sold in the manner provided under chapter 475.
7.6 (g) The joint powers board or any regional railroad authority wholly within the
7.7metropolitan transportation area also may authorize, issue, and sell its bonds, notes, or
7.8other obligations for the purposes, and in accordance with the procedures, set forth in
7.9section
7.10railroad authority may be limited obligations, payable solely from or secured by taxes
7.11levied under this section. A regional railroad authority may also pledge its taxing powers
7.12as additional security for the bonds.
7.13 Subd. 7a. Debt service statement. The joint powers board shall, by October
7.141 annually, submit to the commissioner of revenue a debt service statement, which
7.15must specify an amount equal to the total amount necessary to pay debt service in the
7.16subsequent calendar year on bonds or other obligations issued prior to January 1, 2011,
7.17under subdivision 7. The debt service statement must include identification of the amount
7.18necessary in each month for the payments.
7.19 Subd. 8.
7.20section
7.21of the taxes imposed under this section on a monthly basis, as
7.22
7.23 Subd. 9. Administration, collection, enforcement. Except as otherwise provided
7.24in this section, the provisions of section
7.25administration, collection, and enforcement of the tax authorized under this section.
7.26 Subd. 10. Termination of local option taxes. (a) The taxes imposed under
7.27
7.28agreement pursuant to subdivision 3, clause (3), shall terminate when the county has
7.29satisfied its portion, as defined in the joint powers agreement, of all outstanding bonds or
7.30obligations entered into while the county was a member of the agreement.
7.31 (b) If the joint powers agreement under subdivision 3 is terminated, the taxes
7.32imposed under
7.33termination will terminate when all outstanding bonds or obligations are satisfied. The
7.34auditors of the counties in which the taxes are imposed shall see to the administration of
7.35this paragraph.
8.1 Subd. 11. Report. The joint powers board shall report annually by February 1 to the
8.2
8.3 committees having jurisdiction over transportation policy and finance concerning
8.4 (1) board activities and actions, (2) bonds authorized or issued under subdivision 7, (3)
8.5 revenues received, and (4) grants awarded.
8.6 Subd. 12. Grant awards to Metropolitan Council. Any grant award under this
8.7section made to the Metropolitan Council must supplement, and must not supplant,
8.8operating and capital assistance provided by the state.
8.9EFFECTIVE DATE.This section is effective July 1, 2013, for sales and purchases
8.10made after June 30, 2013, except that the imposition of the tax under subdivision 2a shall
8.11be on the first day of the calendar quarter beginning at least 60 days after the date of final
8.12enactment. This section applies in the counties of Anoka, Carver, Dakota, Hennepin,
8.13Ramsey, Scott, and Washington.
8.14 Sec. 2. [297A.9925] METROPOLITAN AREA TRANSIT SALES TAX;
8.15ALLOCATION OF FUNDS.
8.16 Subdivision 1. Definitions. For purposes of this section, the following terms have
8.17the meanings given them:
8.18(1) "board" means the joints powers board established under section 297A.992; and
8.19(2) "net transit sales tax proceeds" has the meaning given in section 297A.992,
8.20subdivision 1.
8.21 Subd. 2. Allocation formula. In the manner specified under subdivision 6, the
8.22commissioner of revenue shall remit the net transit sales tax proceeds as follows:
8.23(1) the amount specified in the debt service statement under section 297A.992,
8.24subdivision 7a, to the joint powers board under section 297A.992;
8.25(2) a base funding level, as follows:
8.26(i) $66,600,000 in calendar year 2014, and $78,200,000 in calendar year 2015 and
8.27each year thereafter, to the Metropolitan Council for transit operations under chapter
8.28473; and
8.29(ii) $95,800,000 in calendar year 2014, and $96,700,000 in calendar year 2015 and
8.30each year thereafter, to the board for the purposes specified in this section and section
8.31297A.992; and
8.32(3) the remaining revenues following the allocations under clauses (1) and (2), to the
8.33board, the council, or both, as specified in the joint certification under subdivision 2.
8.34 Subd. 3. Joint certification. (a) The board and the Metropolitan Council shall
8.35annually develop a joint certification for submission to the commissioner of revenue as
9.1provided in this subdivision. The joint certification must be separately adopted by the
9.2board and by the council.
9.3(b) The commissioner of revenue shall estimate the net transit sales tax proceeds,
9.4and by October 15 annually, provide to the board and the council an estimate of allocations
9.5under subdivision 2.
9.6(c) If the commissioner does not receive a joint certification by December 1, the
9.7commissioner may not remit the proceeds identified under subdivision 2, clause (3),
9.8except as provided by a legislatively enacted appropriation.
9.9(d) The joint certification must specify:
9.10(1) total allocation between the council and the board of estimated net transit sales
9.11tax proceeds available under the certification, for the following calendar year;
9.12(2) the total budgeted operations and maintenance costs of each transit way that will
9.13be in revenue operations during the following calendar year; and
9.14(3) a base funding level established under paragraph (e), if any.
9.15(e) Notwithstanding subdivision 1, a joint certification may establish a base funding
9.16level that supersedes the amounts specified in subdivision 2, clause (2), item (i) or (ii), or
9.17both.
9.18(f) A joint certification may not exceed the estimated net transit sales tax proceeds
9.19less (1) the allocation required under subdivision 2, clause (1); and (2) a base funding level
9.20under subdivision 2, clause (2), or identified under paragraph (e).
9.21(g) By December 15 annually, the board shall electronically submit a copy of any
9.22joint certification to the chairs and ranking minority members of the legislative committees
9.23with jurisdiction over transportation policy and finance. If the commissioner does not
9.24receive a joint certification, the commissioner shall, by December 15 of that year, submit
9.25a notification to the chairs and ranking minority members of the legislative committees
9.26with jurisdiction over transportation policy and finance.
9.27 Subd. 4. Uses and priorities; Metropolitan Council. The Metropolitan Council
9.28shall use all funds remitted to the council under this section in the following priority order:
9.29(1) payment of debt service on bonds or other obligations for transit capital, if
9.30another source of funds for such payment is not otherwise identified;
9.31(2) continuation of bus and rail transit operations, including but not limited to
9.32operations and maintenance of all transit ways under revenue operations; and
9.33(3) transit improvements in accordance with the council's transit planning,
9.34including but not limited to expansion and upgrades of bus service and related amenities,
9.35development of arterial bus rapid transit and streetcars as appropriate, and maintenance of
9.36affordable transit fares.
10.1 Subd. 5. Uses and priorities; joint powers board. The board shall use all funds
10.2remitted to the board under this section as provided in section 297A.992.
10.3 Subd. 6. Remittance schedule. The commissioner of revenue shall remit the net
10.4transit sales tax proceeds on a monthly basis, in amounts that are proportional to the total
10.5being remitted for the year under subdivision 2, provided that the amount remitted in each
10.6month under subdivision 2, clause (1), may not be less than the amount necessary for that
10.7month as specified in the debt service statement under section 297A.992, subdivision
10.87a. The commissioner may adjust monthly remittance to account for variation between
10.9estimated and actual collections, whether during the calendar year in which collections
10.10occur or in the following calendar year.
10.11 Subd. 7. Transition. Notwithstanding subdivision 2, for collections from July 1,
10.122013, through December 31, 2013, the commissioner of revenue shall remit the net transit
10.13sales tax proceeds as follows:
10.14(1) $33,300,000 to the Metropolitan Council for transit operations under chapter
10.15473; and
10.16(2) $53,900,000 to the board for the purposes specified in this section and section
10.17297A.992.
10.18EFFECTIVE DATE.This section is effective July 1, 2013, and applies in the
10.19counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
10.20 Sec. 3. Minnesota Statutes 2012, section 473.39, is amended by adding a subdivision
10.21to read:
10.22 Subd. 6. Revenue bonds. (a) In addition to other authority under this section, the
10.23council may, by resolution, authorize the issuance and sale of its revenue bonds, notes, or
10.24other obligations to provide funds to implement the council's transit capital improvement
10.25program and to refund bonds issued under this subdivision.
10.26(b) The bonds shall be sold, issued, and secured in the manner provided in chapter
10.27475 for bonds payable solely from or secured by revenues, and the council shall have
10.28the same powers and duties as a municipality and its governing body in issuing bonds
10.29under that chapter. The bonds (1) shall be payable from and secured by a pledge of
10.30all or any part of revenues receivable to the council from the metropolitan area transit
10.31sales tax imposed under section 297A.992 and allocated under section 297A.9925, and
10.32associated investment earnings on debt proceeds; (2) shall not, and shall state they do not,
10.33represent or constitute a general obligation of the council; and (3) shall not be included
10.34in the net debt of any city, county, or other subdivision of the state for the purpose of
10.35any net debt limitation. The bonds will be deemed payable wholly from the income of
11.1revenue-producing conveniences within the meaning of section 475.58. The proceeds of
11.2the bonds may also be used to fund necessary reserves and to pay credit enhancement fees,
11.3issuance costs, and other financing costs during the life of the debt.
11.4(c) The bonds may be secured by a bond resolution, or a trust indenture entered into
11.5by the council with a corporate trustee within or outside the state, which shall define the
11.6revenues and bond proceeds pledged for the payment and security of the bonds. The
11.7pledge shall be a valid charge on the revenues received by the council under section
11.8297A.9925. Neither the state, nor any municipality or political subdivision except the
11.9council, nor any member, officer, or employee of the council, is liable on the obligations.
11.10No mortgage of or security interest in any tangible real or personal property shall be
11.11granted to the bondholders or the trustee, but they shall have a valid security interest in the
11.12revenues and bond proceeds received by the council and pledged to the payment of the
11.13bonds. In the bond resolution or trust indenture, the council may make such covenants as
11.14it determines to be reasonable for the protection of the bondholders, including a covenant
11.15to issue general obligation bonds to refund the revenue bonds if and to the extent required
11.16to pay principal and interest on the bonds.
11.17EFFECTIVE DATE.This section is effective the day following final enactment,
11.18and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
11.19Washington.
11.20 Sec. 4. Minnesota Statutes 2012, section 473.39, subdivision 1p, is amended to read:
11.21 Subd. 1p. Obligations; additional authority after July 1, 2010. After July 1,
11.222010, in addition to other authority in this section, the council may issue certificates of
11.23indebtedness, bonds, or other obligations under this section in an amount not exceeding
11.24
11.25capital improvement program and for related costs, including the costs of issuance and
11.26sale of the obligations.
11.27EFFECTIVE DATE.This section is effective the day following final enactment,
11.28and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
11.29Washington.
11.30 Sec. 5. Minnesota Statutes 2012, section 473.39, subdivision 1r, is amended to read:
11.31 Subd. 1r. Obligations. After July 1, 2012, in addition to other authority under this
11.32section, the council may issue certificates of indebtedness, bonds, or other obligations under
11.33this section in an amount not exceeding
12.1
12.2
12.3
12.4funded using replacement transit service provider reserves that were reduced in 2012 as a
12.5result of Laws 2011, First Special Session chapter 3, article 1, section 4.
12.6EFFECTIVE DATE.This section is effective the day following final enactment,
12.7and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
12.8Washington.
12.9 Sec. 6. REPEALER.
12.10Minnesota Statutes 2012, section 473.39, subdivision 1q, is repealed.
