Bill Text: MN HF1740 | 2013-2014 | 88th Legislature | Engrossed
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-Engrossed.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 four 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 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 a sales and use tax on retail sales
2.21and uses taxable under this chapter, at a rate equal to........
2.22 Subd. 3. Joint powers agreement. Before imposing the taxes authorized in
2.23subdivision 2, an eligible county must declare by resolution of its county board to be part
2.24of the metropolitan transportation area and must enter into a joint powers agreement. The
2.25joint powers agreement:
2.26 (1) must form a joint powers board, as specified in subdivision 4;
2.27 (2) must provide a process that allows any eligible county, by resolution of its county
2.28board, to join the joint powers board and impose the taxes authorized in subdivision 2;
2.29 (3) may provide for withdrawal of a participating county before final termination of
2.30the agreement; and
2.31 (4) may provide for a weighted voting system for joint powers board decisions.
2.32 Subd. 4. Joint powers board. (a) The joint powers board must consist of one
2.33or more commissioners of each countythat is in the metropolitan transportation area,
2.34appointed by its county board, and the chair of the Metropolitan Council, who must have
2.35voting rights, subject to subdivision 3, clause (4). The joint powers board has the powers
2.36and duties provided in this section and section471.59 .
3.1 (b) The joint powers board may utilize no more thanthree-fourths one-half of one
3.2percent of the net transit sales tax proceedsof the taxes imposed under this section for
3.3ordinary administrative expenses incurred in carrying out the provisions of this section.
3.4Any additional administrative expenses must be paid by the participating counties.
3.5 (c) The joint powers board may establish a technical advisory group that is separate
3.6from the GEARS Committee. The group must consist of representatives of cities, counties,
3.7or public agencies, including the Metropolitan Council. The technical advisory group
3.8must be used solely for technical consultation purposes.
3.9(d) The chair of the joint powers board must be a county commissioner who is
3.10elected by the board.
3.11 Subd. 5. Grantapplication and awards; Grant Evaluation and Ranking System
3.12(GEARS) Committee process, general requirements. (a) The joint powers board shall
3.13establish a grant application process and identify the amount of available funding for grant
3.14awards. Grant applications must be submitted in a form prescribed by the joint powers
3.15board. An applicant must provide, in addition to all other information required by the joint
3.16powers board, the estimated cost of the project, the amount of the grant sought, possible
3.17sources of funding in addition to the grant sought, and identification of any federal funds
3.18that will be utilized if the grant is awarded. A grant application seeking transit capital
3.19funding must identify the source of money necessary to operate the transit improvement.
3.20 (b) The joint powers board shall establish a timeline and procedures for the award of
3.21grants, and may award grants only to the state and political subdivisions. The board shall
3.22define objective criteria for the award of grants, which must include, but not be limited to,
3.23consistency with the most recent version of the transportation policy plan adopted by the
3.24Metropolitan Council under section473.146 . The joint powers board shall maximize the
3.25availability and use of federal funds in projects funded under this section.
3.26(c) Grants must be funded by the proceeds of the taxes imposed under this section,
3.27bonds, notes, or other obligations issued by the joint powers board under subdivision 7.
3.28(d) For grants awarded in each calendar year for 2014 through 2018, the board
3.29shall award grants to each minimum guarantee county that is a member of the board, in
3.30an amount that is no less than:
3.31(1) one-third of 55 percent; times
3.32(2) the net transit sales tax proceeds for that year; times
3.33(3)(i) the amount of revenue from the state general sales and use taxes under this
3.34chapter collected within that county in the previous year, divided by
3.35(ii) the amount of revenue from the state general sales and use taxes under this
3.36chapter collected within all metropolitan counties in the previous year.
4.1 Subd. 5a. Grant awards; Grant Evaluation and Ranking System (GEARS)
4.2Committee.(c) (a) The joint powers board shall establish a GEARS Committee, which
4.3must consist of:
4.4 (1) one county commissioner from each countythat is in the metropolitan
4.5transportation area, appointed by its county board;
4.6 (2) one elected city representative from each countythat is in the metropolitan
4.7transportation area;
4.8 (3) one additional elected city representative from each county for every additional
4.9400,000 in population, or fraction of 400,000, in the county that is above 400,000 in
4.10population; and
4.11 (4) the chair of the Metropolitan Council Transportation Committee.
4.12(d) (b) Each city representative must be elected at a meeting of cities in the
4.13metropolitantransportation area, which must be convened for that purpose by the
4.14Association of Metropolitan Municipalities.
4.15(e) (c) The committee shall:
4.16 (1) evaluate grant applications following objective criteria established by the joint
4.17powers board, and must;
4.18 (2) provide to the joint powers board a selection list of transportation projects that
4.19includes a priority ranking.;
4.20(3) annually evaluate and award grants to local units of government including
4.21park districts for construction and maintenance of regional bicycle, trail, and pedestrian
4.22infrastructure; and
4.23(4) annually evaluate and award grants to cities for planning activities related to
4.24land use and transportation linkages, streetcar development, or bicycle and pedestrian
4.25connections.
4.26(d) Grants awarded by the committee under paragraph (c), clauses (3) and (4), are
4.27not subject to approval by the board. Annually, the committee shall award grants under
4.28those clauses in a total amount that equals no more than 3.75 percent of the net transit
4.29sales tax proceeds. Of the grant awards required under this paragraph, at least 80 percent
4.30must be for the purposes specified under paragraph (c), clause (3).
4.31(e) The committee may award a grant under paragraph (c), clause (3), only if the
4.32project being funded is in compliance with:
4.33(1) a regional nonmotorized transportation system plan developed by the
4.34Metropolitan Council; or
5.1(2) a municipal nonmotorized transportation plan, which must provide coordinated
5.2development of transportation facilities located in adjacent communities including
5.3connections between facilities in each community.
5.4 Subd. 5b. Grant awards; consistency with transportation plans.(f) A grant
5.5award for a transit project located within the metropolitan area, as defined in section
5.6473.121, subdivision 2
, may be funded only after the Metropolitan Council reviews the
5.7project for consistency with the transit portion of the Metropolitan Council policy plan
5.8and one of the following occurs:
5.9 (1) the Metropolitan Council finds the project to be consistent;
5.10 (2) the Metropolitan Council initially finds the project to be inconsistent, but after a
5.11good faith effort to resolve the inconsistency through negotiations with the joint powers
5.12board, agrees that the grant award may be funded; or
5.13 (3) the Metropolitan Council finds the project to be inconsistent, and submits the
5.14consistency issue for final determination to a panel, which determines the project to be
5.15consistent. The panel is composed of a member appointed by the chair of the Metropolitan
5.16Council, a member appointed by the joint powers board, and a member agreed upon by
5.17both the chair and the joint powers board.
5.18(g) Grants must be funded by the proceeds of the taxes imposed under this section,
5.19bonds, notes, or other obligations issued by the joint powers board under subdivision 7.
5.20(h) Notwithstanding the provisions of this section except subdivision 6a, of
5.21the revenue collected under this section, the joint powers board shall allocate to the
5.22Metropolitan Council, in fiscal years 2012 and 2013, an amount not less than 75 percent of
5.23the net cost of operations for those transit ways that were receiving metropolitan sales tax
5.24funds through an operating grant agreement on June 30, 2011.
5.25(i) The Metropolitan Council shall expend any funds allocated under paragraph (h)
5.26for the operations of the specified transit ways solely within those counties that are in the
5.27metropolitan transportation area.
5.28(j) Nothing in paragraph (h) or (i) prevents grant awards to the Metropolitan Council
5.29for capital and operating assistance for transit ways and park-and-ride facilities.
5.30 Subd. 6.Allocation of Grant awards; eligible uses. (a) The board must allocate
5.31grant awards only for the followingtransit purposes:
5.32(1) transit way development and operations, consisting of:
5.33 (i) capital improvements to transit ways, including, but not limited to, commuter
5.34rail rolling stock, light rail vehicles, and transit way buses;
5.35 (ii) capital costs for park-and-ride facilities, as defined in section174.256 ,
5.36subdivision 2;
6.1 (iii) feasibility studies, planning, alternatives analyses, environmental studies,
6.2engineering, property acquisition for transit way purposes, and construction of transit
6.3ways; and
6.4 (iv) operating assistance for transit ways; and
6.5 (2) as specified under subdivision 5a.
6.6(b) The joint powers board must annually award grants to each minimum guarantee
6.7county in an amount no less than the amount of sales tax revenue collected within that
6.8county.
6.9(c) No more than 1.25 percent of the total awards may be annually allocated for
6.10planning, studies, design, construction, maintenance, and operation of pedestrian programs
6.11and bicycle programs and pathways.
6.12 Subd. 6a. Priority of fund uses. The joint powers board shall allocate all revenues
6.13from the taxes imposed under this section in conformance with the following priority order:
6.14(1) payment of debt service necessary for the fiscal year on bonds or other
6.15obligations issued prior to January 1, 2011, under subdivision 7; and
6.16(2) as otherwise authorized under this section.
6.17 Subd. 7. Bonds. (a) The joint powers board or any county, acting under a joint
6.18powers agreement as specified in this section, may, by resolution, authorize, issue, and sell
6.19its bonds, notes, or other obligations for the purpose of funding grants under subdivision
6.206. The joint powers board or county may also, by resolution, issue bonds to refund the
6.21bonds issued pursuant to this subdivision.
6.22 (b) The bonds of the joint powers board must be limited obligations, payable solely
6.23from or secured by taxes levied under this section.
6.24 (c) The bonds of any county may be limited obligations, payable solely from or
6.25secured by taxes levied under this section. A county may also pledge its full faith, credit,
6.26and taxing power as additional security for the bonds.
6.27 (d) Bonds may be issued in one or more series and sold without an election. The bonds
6.28shall be secured, bear the interest rate or rates or a variable rate, have the rank or priority,
6.29be executed in the manner, be payable in the manner, mature, and be subject to the defaults,
6.30redemptions, repurchases, tender options, or other terms, and shall be sold in such manner
6.31as the joint powers board, the regional railroad authority, or the county may determine.
6.32 (e) The joint powers board or any regional railroad authority or any county may
6.33enter into and perform all contracts deemed necessary or desirable by it to issue and secure
6.34the bonds, including an indenture of trust with a trustee within or without the state.
6.35 (f) Except as otherwise provided in this subdivision, the bonds must be issued and
6.36sold in the manner provided under chapter 475.
7.1 (g) The joint powers board or any regional railroad authority wholly within the
7.2metropolitan transportation area also may authorize, issue, and sell its bonds, notes, or
7.3other obligations for the purposes, and in accordance with the procedures, set forth in
7.4section398A.07 to fund grants as provided in subdivision 6. The bonds of any regional
7.5railroad authority may be limited obligations, payable solely from or secured by taxes
7.6levied under this section. A regional railroad authority may also pledge its taxing powers
7.7as additional security for the bonds.
7.8 Subd. 7a. Debt service statement. The joint powers board shall, by October
7.91 annually, submit to the commissioner of revenue a debt service statement, which
7.10must specify an amount equal to the total amount necessary to pay debt service in the
7.11subsequent calendar year on bonds or other obligations issued prior to January 1, 2011,
7.12under subdivision 7. The debt service statement must include identification of the amount
7.13necessary in each month for the payments.
7.14 Subd. 8.Allocation Remittance of revenues. After the deductions allowed in
7.15section297A.99 , subdivision 11, the commissioner of revenue shall remit the net proceeds
7.16of the taxes imposed under this section on a monthly basis, asdirected by the joint powers
7.17board under this section provided under section 297A.9925.
7.18 Subd. 9. Administration, collection, enforcement. Except as otherwise provided
7.19in this section, the provisions of section297A.99, subdivisions 4 and 6 to 12a, govern the
7.20administration, collection, and enforcement of the tax authorized under this section.
7.21 Subd. 10. Termination of local option taxes. (a) The taxes imposed undersection
7.22297A.99, subdivision 1, subdivision 2 by a county that withdraws from the joint powers
7.23agreement pursuant to subdivision 3, clause (3), shall terminate when the county has
7.24satisfied its portion, as defined in the joint powers agreement, of all outstanding bonds or
7.25obligations entered into while the county was a member of the agreement.
7.26 (b) If the joint powers agreement under subdivision 3 is terminated, the taxes
7.27imposed undersection
297A.99, subdivision 1
7.28termination will terminate when all outstanding bonds or obligations are satisfied. The
7.29auditors of the counties in which the taxes are imposed shall see to the administration of
7.30this paragraph.
7.31 Subd. 11. Report. The joint powers board shall report annually by February 1 to the
7.32house of representatives and senate chairs and ranking minority members of the legislative
7.33 committees having jurisdiction over transportation policy and finance concerningthe
7.34 (1) board activities and actions, (2) bonds authorized or issued under subdivision 7, (3)
7.35 revenues received, and (4) grants awarded.
8.1 Subd. 12. Grant awards to Metropolitan Council. Any grant award under this
8.2section made to the Metropolitan Council must supplement, and must not supplant,
8.3operating and capital assistance provided by the state.
8.4EFFECTIVE DATE.This section is effective July 1, 2013, for sales and purchases
8.5made after June 30, 2013, except that the imposition of the tax under subdivision 2a shall
8.6be on the first day of the calendar quarter beginning at least 60 days after the date of final
8.7enactment. This section applies in the counties of Anoka, Carver, Dakota, Hennepin,
8.8Ramsey, Scott, and Washington.
8.9 Sec. 2. [297A.9925] METROPOLITAN AREA TRANSIT SALES TAX;
8.10ALLOCATION OF FUNDS.
8.11 Subdivision 1. Definitions. For purposes of this section, the following terms have
8.12the meanings given them:
8.13(1) "board" means the joints powers board established under section 297A.992; and
8.14(2) "net transit sales tax proceeds" has the meaning given in section 297A.992,
8.15subdivision 1.
8.16 Subd. 2. Allocation formula. In the manner specified under subdivision 6, the
8.17commissioner of revenue shall remit the net transit sales tax proceeds as follows:
8.18(1) the amount specified in the debt service statement under section 297A.992,
8.19subdivision 7a, to the joint powers board under section 297A.992;
8.20(2) a base funding level, as follows:
8.21(i) $66,600,000 in calendar year 2014, and $78,200,000 in calendar year 2015 and
8.22each year thereafter, to the Metropolitan Council for transit operations under chapter
8.23473; and
8.24(ii) $95,800,000 in calendar year 2014, and $96,700,000 in calendar year 2015 and
8.25each year thereafter, to the board for the purposes specified in this section and section
8.26297A.992; and
8.27(3) the remaining revenues following the allocations under clauses (1) and (2), to the
8.28board, the council, or both, as specified in the joint certification under subdivision 2.
8.29 Subd. 3. Joint certification. (a) The board and the Metropolitan Council shall
8.30annually develop a joint certification for submission to the commissioner of revenue as
8.31provided in this subdivision. The joint certification must be separately adopted by the
8.32board and by the council.
8.33(b) The commissioner of revenue shall estimate the net transit sales tax proceeds,
8.34and by October 15 annually, provide to the board and the council an estimate of allocations
8.35under subdivision 2.
9.1(c) If the commissioner does not receive a joint certification by December 1, the
9.2commissioner may not remit the proceeds identified under subdivision 2, clause (3),
9.3except as provided by a legislatively enacted appropriation.
9.4(d) The joint certification must specify:
9.5(1) total allocation between the council and the board of estimated net transit sales
9.6tax proceeds available under the certification, for the following calendar year;
9.7(2) the total budgeted operations and maintenance costs of each transit way that will
9.8be in revenue operations during the following calendar year; and
9.9(3) a base funding level established under paragraph (e), if any.
9.10(e) Notwithstanding subdivision 1, a joint certification may establish a base funding
9.11level that supersedes the amounts specified in subdivision 2, clause (2), item (i) or (ii), or
9.12both.
9.13(f) A joint certification may not exceed the estimated net transit sales tax proceeds
9.14less (1) the allocation required under subdivision 2, clause (1); and (2) a base funding level
9.15under subdivision 2, clause (2), or identified under paragraph (e).
9.16(g) By December 15 annually, the board shall electronically submit a copy of any
9.17joint certification to the chairs and ranking minority members of the legislative committees
9.18with jurisdiction over transportation policy and finance. If the commissioner does not
9.19receive a joint certification, the commissioner shall, by December 15 of that year, submit
9.20a notification to the chairs and ranking minority members of the legislative committees
9.21with jurisdiction over transportation policy and finance.
9.22 Subd. 4. Uses and priorities; Metropolitan Council. The Metropolitan Council
9.23shall use all funds remitted to the council under this section in the following priority order:
9.24(1) payment of debt service on bonds or other obligations for transit capital, if
9.25another source of funds for such payment is not otherwise identified;
9.26(2) continuation of bus and rail transit operations, including but not limited to
9.27operations and maintenance of all transit ways under revenue operations; and
9.28(3) transit improvements in accordance with the council's transit planning,
9.29including but not limited to expansion and upgrades of bus service and related amenities,
9.30development of arterial bus rapid transit and streetcars as appropriate, and maintenance of
9.31affordable transit fares.
9.32 Subd. 5. Uses and priorities; joint powers board. The board shall use all funds
9.33remitted to the board under this section as provided in section 297A.992.
9.34 Subd. 6. Remittance schedule. The commissioner of revenue shall remit the net
9.35transit sales tax proceeds on a monthly basis, in amounts that are proportional to the total
9.36being remitted for the year under subdivision 2, provided that the amount remitted in each
10.1month under subdivision 2, clause (1), may not be less than the amount necessary for that
10.2month as specified in the debt service statement under section 297A.992, subdivision
10.37a. The commissioner may adjust monthly remittance to account for variation between
10.4estimated and actual collections, whether during the calendar year in which collections
10.5occur or in the following calendar year.
10.6 Subd. 7. Transition. Notwithstanding subdivision 2, for collections from July 1,
10.72013, through December 31, 2013, the commissioner of revenue shall remit the net transit
10.8sales tax proceeds as follows:
10.9(1) $33,300,000 to the Metropolitan Council for transit operations under chapter
10.10473; and
10.11(2) $53,900,000 to the board for the purposes specified in this section and section
10.12297A.992.
10.13EFFECTIVE DATE.This section is effective July 1, 2013, and applies in the
10.14counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
10.15 Sec. 3. Minnesota Statutes 2012, section 473.39, is amended by adding a subdivision
10.16to read:
10.17 Subd. 6. Revenue bonds. (a) In addition to other authority under this section, the
10.18council may, by resolution, authorize the issuance and sale of its revenue bonds, notes, or
10.19other obligations to provide funds to implement the council's transit capital improvement
10.20program and to refund bonds issued under this subdivision.
10.21(b) The bonds shall be sold, issued, and secured in the manner provided in chapter
10.22475 for bonds payable solely from or secured by revenues, and the council shall have
10.23the same powers and duties as a municipality and its governing body in issuing bonds
10.24under that chapter. The bonds (1) shall be payable from and secured by a pledge of
10.25all or any part of revenues receivable to the council from the metropolitan area transit
10.26sales tax imposed under section 297A.992 and allocated under section 297A.9925, and
10.27associated investment earnings on debt proceeds; (2) shall not, and shall state they do not,
10.28represent or constitute a general obligation of the council; and (3) shall not be included
10.29in the net debt of any city, county, or other subdivision of the state for the purpose of
10.30any net debt limitation. The bonds will be deemed payable wholly from the income of
10.31revenue-producing conveniences within the meaning of section 475.58. The proceeds of
10.32the bonds may also be used to fund necessary reserves and to pay credit enhancement fees,
10.33issuance costs, and other financing costs during the life of the debt.
10.34(c) The bonds may be secured by a bond resolution, or a trust indenture entered into
10.35by the council with a corporate trustee within or outside the state, which shall define the
11.1revenues and bond proceeds pledged for the payment and security of the bonds. The
11.2pledge shall be a valid charge on the revenues received by the council under section
11.3297A.9925. Neither the state, nor any municipality or political subdivision except the
11.4council, nor any member, officer, or employee of the council, is liable on the obligations.
11.5No mortgage of or security interest in any tangible real or personal property shall be
11.6granted to the bondholders or the trustee, but they shall have a valid security interest in the
11.7revenues and bond proceeds received by the council and pledged to the payment of the
11.8bonds. In the bond resolution or trust indenture, the council may make such covenants as
11.9it determines to be reasonable for the protection of the bondholders, including a covenant
11.10to issue general obligation bonds to refund the revenue bonds if and to the extent required
11.11to pay principal and interest on the bonds.
11.12EFFECTIVE DATE.This section is effective the day following final enactment,
11.13and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
11.14Washington.
11.15 Sec. 4. Minnesota Statutes 2012, section 473.39, subdivision 1p, is amended to read:
11.16 Subd. 1p. Obligations; additional authority after July 1, 2010. After July 1,
11.172010, in addition to other authority in this section, the council may issue certificates of
11.18indebtedness, bonds, or other obligations under this section in an amount not exceeding
11.19$34,600,000 $25,900,000 for capital expenditures as prescribed in the council's transit
11.20capital improvement program and for related costs, including the costs of issuance and
11.21sale of the obligations.
11.22EFFECTIVE DATE.This section is effective the day following final enactment,
11.23and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
11.24Washington.
11.25 Sec. 5. Minnesota Statutes 2012, section 473.39, subdivision 1r, is amended to read:
11.26 Subd. 1r. Obligations. After July 1, 2012, in addition to other authority under this
11.27section, the council may issue certificates of indebtedness, bonds, or other obligations under
11.28this section in an amount not exceeding$39,600,000 for capital expenditures as prescribed
11.29in the council's transit capital improvement program and for related costs, including the
11.30costs of issuance and sale of the obligations. Of this authorization, up to $4,200,000 may
11.31be made available, to fund capital projects in amounts that would have otherwise been
11.32funded using replacement transit service provider reserves that were reduced in 2012 as a
11.33result of Laws 2011, First Special Session chapter 3, article 1, section 4.
12.1EFFECTIVE DATE.This section is effective the day following final enactment,
12.2and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
12.3Washington.
12.4 Sec. 6. REPEALER.
12.5Minnesota 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 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 a sales and use tax on retail sales
2.21and uses taxable under this chapter, at a rate equal to........
2.22 Subd. 3. Joint powers agreement. Before imposing the taxes authorized in
2.23subdivision 2, an eligible county must declare by resolution of its county board to be part
2.24of the metropolitan transportation area and must enter into a joint powers agreement. The
2.25joint powers agreement:
2.26 (1) must form a joint powers board, as specified in subdivision 4;
2.27 (2) must provide a process that allows any eligible county, by resolution of its county
2.28board, to join the joint powers board and impose the taxes authorized in subdivision 2;
2.29 (3) may provide for withdrawal of a participating county before final termination of
2.30the agreement; and
2.31 (4) may provide for a weighted voting system for joint powers board decisions.
2.32 Subd. 4. Joint powers board. (a) The joint powers board must consist of one
2.33or more commissioners of each county
2.34appointed by its county board, and the chair of the Metropolitan Council, who must have
2.35voting rights, subject to subdivision 3, clause (4). The joint powers board has the powers
2.36and duties provided in this section and section
3.1 (b) The joint powers board may utilize no more than
3.2percent of the net transit sales tax proceeds
3.3ordinary administrative expenses incurred in carrying out the provisions of this section.
3.4Any additional administrative expenses must be paid by the participating counties.
3.5 (c) The joint powers board may establish a technical advisory group that is separate
3.6from the GEARS Committee. The group must consist of representatives of cities, counties,
3.7or public agencies, including the Metropolitan Council. The technical advisory group
3.8must be used solely for technical consultation purposes.
3.9(d) The chair of the joint powers board must be a county commissioner who is
3.10elected by the board.
3.11 Subd. 5. Grant
3.12
3.13establish a grant application process and identify the amount of available funding for grant
3.14awards. Grant applications must be submitted in a form prescribed by the joint powers
3.15board. An applicant must provide, in addition to all other information required by the joint
3.16powers board, the estimated cost of the project, the amount of the grant sought, possible
3.17sources of funding in addition to the grant sought, and identification of any federal funds
3.18that will be utilized if the grant is awarded. A grant application seeking transit capital
3.19funding must identify the source of money necessary to operate the transit improvement.
3.20 (b) The joint powers board shall establish a timeline and procedures for the award of
3.21grants, and may award grants only to the state and political subdivisions. The board shall
3.22define objective criteria for the award of grants, which must include, but not be limited to,
3.23consistency with the most recent version of the transportation policy plan adopted by the
3.24Metropolitan Council under section
3.25availability and use of federal funds in projects funded under this section.
3.26(c) Grants must be funded by the proceeds of the taxes imposed under this section,
3.27bonds, notes, or other obligations issued by the joint powers board under subdivision 7.
3.28(d) For grants awarded in each calendar year for 2014 through 2018, the board
3.29shall award grants to each minimum guarantee county that is a member of the board, in
3.30an amount that is no less than:
3.31(1) one-third of 55 percent; times
3.32(2) the net transit sales tax proceeds for that year; times
3.33(3)(i) the amount of revenue from the state general sales and use taxes under this
3.34chapter collected within that county in the previous year, divided by
3.35(ii) the amount of revenue from the state general sales and use taxes under this
3.36chapter collected within all metropolitan counties in the previous year.
4.1 Subd. 5a. Grant awards; Grant Evaluation and Ranking System (GEARS)
4.2Committee.
4.3must consist of:
4.4 (1) one county commissioner from each county
4.5
4.6 (2) one elected city representative from each county
4.7
4.8 (3) one additional elected city representative from each county for every additional
4.9400,000 in population, or fraction of 400,000, in the county that is above 400,000 in
4.10population; and
4.11 (4) the chair of the Metropolitan Council Transportation Committee.
4.12
4.13metropolitan
4.14Association of Metropolitan Municipalities.
4.15
4.16 (1) evaluate grant applications following objective criteria established by the joint
4.17powers board
4.18 (2) provide to the joint powers board a selection list of transportation projects that
4.19includes a priority ranking
4.20(3) annually evaluate and award grants to local units of government including
4.21park districts for construction and maintenance of regional bicycle, trail, and pedestrian
4.22infrastructure; and
4.23(4) annually evaluate and award grants to cities for planning activities related to
4.24land use and transportation linkages, streetcar development, or bicycle and pedestrian
4.25connections.
4.26(d) Grants awarded by the committee under paragraph (c), clauses (3) and (4), are
4.27not subject to approval by the board. Annually, the committee shall award grants under
4.28those clauses in a total amount that equals no more than 3.75 percent of the net transit
4.29sales tax proceeds. Of the grant awards required under this paragraph, at least 80 percent
4.30must be for the purposes specified under paragraph (c), clause (3).
4.31(e) The committee may award a grant under paragraph (c), clause (3), only if the
4.32project being funded is in compliance with:
4.33(1) a regional nonmotorized transportation system plan developed by the
4.34Metropolitan Council; or
5.1(2) a municipal nonmotorized transportation plan, which must provide coordinated
5.2development of transportation facilities located in adjacent communities including
5.3connections between facilities in each community.
5.4 Subd. 5b. Grant awards; consistency with transportation plans.
5.5award for a transit project located within the metropolitan area, as defined in section
5.7project for consistency with the transit portion of the Metropolitan Council policy plan
5.8and one of the following occurs:
5.9 (1) the Metropolitan Council finds the project to be consistent;
5.10 (2) the Metropolitan Council initially finds the project to be inconsistent, but after a
5.11good faith effort to resolve the inconsistency through negotiations with the joint powers
5.12board, agrees that the grant award may be funded; or
5.13 (3) the Metropolitan Council finds the project to be inconsistent, and submits the
5.14consistency issue for final determination to a panel, which determines the project to be
5.15consistent. The panel is composed of a member appointed by the chair of the Metropolitan
5.16Council, a member appointed by the joint powers board, and a member agreed upon by
5.17both the chair and the joint powers board.
5.18
5.19
5.20
5.21
5.22
5.23
5.24
5.25
5.26
5.27
5.28
5.29
5.30 Subd. 6.
5.31grant awards only for the following
5.32(1) transit way development and operations, consisting of:
5.33 (i) capital improvements to transit ways, including, but not limited to, commuter
5.34rail rolling stock, light rail vehicles, and transit way buses;
5.35 (ii) capital costs for park-and-ride facilities, as defined in section
5.36subdivision 2;
6.1 (iii) feasibility studies, planning, alternatives analyses, environmental studies,
6.2engineering, property acquisition for transit way purposes, and construction of transit
6.3ways; and
6.4 (iv) operating assistance for transit ways; and
6.5 (2) as specified under subdivision 5a.
6.6
6.7
6.8
6.9
6.10
6.11
6.12 Subd. 6a. Priority of fund uses. The joint powers board shall allocate all revenues
6.13from the taxes imposed under this section in conformance with the following priority order:
6.14(1) payment of debt service necessary for the fiscal year on bonds or other
6.15obligations issued prior to January 1, 2011, under subdivision 7; and
6.16(2) as otherwise authorized under this section.
6.17 Subd. 7. Bonds. (a) The joint powers board or any county, acting under a joint
6.18powers agreement as specified in this section, may, by resolution, authorize, issue, and sell
6.19its bonds, notes, or other obligations for the purpose of funding grants under subdivision
6.206. The joint powers board or county may also, by resolution, issue bonds to refund the
6.21bonds issued pursuant to this subdivision.
6.22 (b) The bonds of the joint powers board must be limited obligations, payable solely
6.23from or secured by taxes levied under this section.
6.24 (c) The bonds of any county may be limited obligations, payable solely from or
6.25secured by taxes levied under this section. A county may also pledge its full faith, credit,
6.26and taxing power as additional security for the bonds.
6.27 (d) Bonds may be issued in one or more series and sold without an election. The bonds
6.28shall be secured, bear the interest rate or rates or a variable rate, have the rank or priority,
6.29be executed in the manner, be payable in the manner, mature, and be subject to the defaults,
6.30redemptions, repurchases, tender options, or other terms, and shall be sold in such manner
6.31as the joint powers board, the regional railroad authority, or the county may determine.
6.32 (e) The joint powers board or any regional railroad authority or any county may
6.33enter into and perform all contracts deemed necessary or desirable by it to issue and secure
6.34the bonds, including an indenture of trust with a trustee within or without the state.
6.35 (f) Except as otherwise provided in this subdivision, the bonds must be issued and
6.36sold in the manner provided under chapter 475.
7.1 (g) The joint powers board or any regional railroad authority wholly within the
7.2metropolitan transportation area also may authorize, issue, and sell its bonds, notes, or
7.3other obligations for the purposes, and in accordance with the procedures, set forth in
7.4section
7.5railroad authority may be limited obligations, payable solely from or secured by taxes
7.6levied under this section. A regional railroad authority may also pledge its taxing powers
7.7as additional security for the bonds.
7.8 Subd. 7a. Debt service statement. The joint powers board shall, by October
7.91 annually, submit to the commissioner of revenue a debt service statement, which
7.10must specify an amount equal to the total amount necessary to pay debt service in the
7.11subsequent calendar year on bonds or other obligations issued prior to January 1, 2011,
7.12under subdivision 7. The debt service statement must include identification of the amount
7.13necessary in each month for the payments.
7.14 Subd. 8.
7.15section
7.16of the taxes imposed under this section on a monthly basis, as
7.17
7.18 Subd. 9. Administration, collection, enforcement. Except as otherwise provided
7.19in this section, the provisions of section
7.20administration, collection, and enforcement of the tax authorized under this section.
7.21 Subd. 10. Termination of local option taxes. (a) The taxes imposed under
7.22
7.23agreement pursuant to subdivision 3, clause (3), shall terminate when the county has
7.24satisfied its portion, as defined in the joint powers agreement, of all outstanding bonds or
7.25obligations entered into while the county was a member of the agreement.
7.26 (b) If the joint powers agreement under subdivision 3 is terminated, the taxes
7.27imposed under
7.28termination will terminate when all outstanding bonds or obligations are satisfied. The
7.29auditors of the counties in which the taxes are imposed shall see to the administration of
7.30this paragraph.
7.31 Subd. 11. Report. The joint powers board shall report annually by February 1 to the
7.32
7.33 committees having jurisdiction over transportation policy and finance concerning
7.34 (1) board activities and actions, (2) bonds authorized or issued under subdivision 7, (3)
7.35 revenues received, and (4) grants awarded.
8.1 Subd. 12. Grant awards to Metropolitan Council. Any grant award under this
8.2section made to the Metropolitan Council must supplement, and must not supplant,
8.3operating and capital assistance provided by the state.
8.4EFFECTIVE DATE.This section is effective July 1, 2013, for sales and purchases
8.5made after June 30, 2013, except that the imposition of the tax under subdivision 2a shall
8.6be on the first day of the calendar quarter beginning at least 60 days after the date of final
8.7enactment. This section applies in the counties of Anoka, Carver, Dakota, Hennepin,
8.8Ramsey, Scott, and Washington.
8.9 Sec. 2. [297A.9925] METROPOLITAN AREA TRANSIT SALES TAX;
8.10ALLOCATION OF FUNDS.
8.11 Subdivision 1. Definitions. For purposes of this section, the following terms have
8.12the meanings given them:
8.13(1) "board" means the joints powers board established under section 297A.992; and
8.14(2) "net transit sales tax proceeds" has the meaning given in section 297A.992,
8.15subdivision 1.
8.16 Subd. 2. Allocation formula. In the manner specified under subdivision 6, the
8.17commissioner of revenue shall remit the net transit sales tax proceeds as follows:
8.18(1) the amount specified in the debt service statement under section 297A.992,
8.19subdivision 7a, to the joint powers board under section 297A.992;
8.20(2) a base funding level, as follows:
8.21(i) $66,600,000 in calendar year 2014, and $78,200,000 in calendar year 2015 and
8.22each year thereafter, to the Metropolitan Council for transit operations under chapter
8.23473; and
8.24(ii) $95,800,000 in calendar year 2014, and $96,700,000 in calendar year 2015 and
8.25each year thereafter, to the board for the purposes specified in this section and section
8.26297A.992; and
8.27(3) the remaining revenues following the allocations under clauses (1) and (2), to the
8.28board, the council, or both, as specified in the joint certification under subdivision 2.
8.29 Subd. 3. Joint certification. (a) The board and the Metropolitan Council shall
8.30annually develop a joint certification for submission to the commissioner of revenue as
8.31provided in this subdivision. The joint certification must be separately adopted by the
8.32board and by the council.
8.33(b) The commissioner of revenue shall estimate the net transit sales tax proceeds,
8.34and by October 15 annually, provide to the board and the council an estimate of allocations
8.35under subdivision 2.
9.1(c) If the commissioner does not receive a joint certification by December 1, the
9.2commissioner may not remit the proceeds identified under subdivision 2, clause (3),
9.3except as provided by a legislatively enacted appropriation.
9.4(d) The joint certification must specify:
9.5(1) total allocation between the council and the board of estimated net transit sales
9.6tax proceeds available under the certification, for the following calendar year;
9.7(2) the total budgeted operations and maintenance costs of each transit way that will
9.8be in revenue operations during the following calendar year; and
9.9(3) a base funding level established under paragraph (e), if any.
9.10(e) Notwithstanding subdivision 1, a joint certification may establish a base funding
9.11level that supersedes the amounts specified in subdivision 2, clause (2), item (i) or (ii), or
9.12both.
9.13(f) A joint certification may not exceed the estimated net transit sales tax proceeds
9.14less (1) the allocation required under subdivision 2, clause (1); and (2) a base funding level
9.15under subdivision 2, clause (2), or identified under paragraph (e).
9.16(g) By December 15 annually, the board shall electronically submit a copy of any
9.17joint certification to the chairs and ranking minority members of the legislative committees
9.18with jurisdiction over transportation policy and finance. If the commissioner does not
9.19receive a joint certification, the commissioner shall, by December 15 of that year, submit
9.20a notification to the chairs and ranking minority members of the legislative committees
9.21with jurisdiction over transportation policy and finance.
9.22 Subd. 4. Uses and priorities; Metropolitan Council. The Metropolitan Council
9.23shall use all funds remitted to the council under this section in the following priority order:
9.24(1) payment of debt service on bonds or other obligations for transit capital, if
9.25another source of funds for such payment is not otherwise identified;
9.26(2) continuation of bus and rail transit operations, including but not limited to
9.27operations and maintenance of all transit ways under revenue operations; and
9.28(3) transit improvements in accordance with the council's transit planning,
9.29including but not limited to expansion and upgrades of bus service and related amenities,
9.30development of arterial bus rapid transit and streetcars as appropriate, and maintenance of
9.31affordable transit fares.
9.32 Subd. 5. Uses and priorities; joint powers board. The board shall use all funds
9.33remitted to the board under this section as provided in section 297A.992.
9.34 Subd. 6. Remittance schedule. The commissioner of revenue shall remit the net
9.35transit sales tax proceeds on a monthly basis, in amounts that are proportional to the total
9.36being remitted for the year under subdivision 2, provided that the amount remitted in each
10.1month under subdivision 2, clause (1), may not be less than the amount necessary for that
10.2month as specified in the debt service statement under section 297A.992, subdivision
10.37a. The commissioner may adjust monthly remittance to account for variation between
10.4estimated and actual collections, whether during the calendar year in which collections
10.5occur or in the following calendar year.
10.6 Subd. 7. Transition. Notwithstanding subdivision 2, for collections from July 1,
10.72013, through December 31, 2013, the commissioner of revenue shall remit the net transit
10.8sales tax proceeds as follows:
10.9(1) $33,300,000 to the Metropolitan Council for transit operations under chapter
10.10473; and
10.11(2) $53,900,000 to the board for the purposes specified in this section and section
10.12297A.992.
10.13EFFECTIVE DATE.This section is effective July 1, 2013, and applies in the
10.14counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
10.15 Sec. 3. Minnesota Statutes 2012, section 473.39, is amended by adding a subdivision
10.16to read:
10.17 Subd. 6. Revenue bonds. (a) In addition to other authority under this section, the
10.18council may, by resolution, authorize the issuance and sale of its revenue bonds, notes, or
10.19other obligations to provide funds to implement the council's transit capital improvement
10.20program and to refund bonds issued under this subdivision.
10.21(b) The bonds shall be sold, issued, and secured in the manner provided in chapter
10.22475 for bonds payable solely from or secured by revenues, and the council shall have
10.23the same powers and duties as a municipality and its governing body in issuing bonds
10.24under that chapter. The bonds (1) shall be payable from and secured by a pledge of
10.25all or any part of revenues receivable to the council from the metropolitan area transit
10.26sales tax imposed under section 297A.992 and allocated under section 297A.9925, and
10.27associated investment earnings on debt proceeds; (2) shall not, and shall state they do not,
10.28represent or constitute a general obligation of the council; and (3) shall not be included
10.29in the net debt of any city, county, or other subdivision of the state for the purpose of
10.30any net debt limitation. The bonds will be deemed payable wholly from the income of
10.31revenue-producing conveniences within the meaning of section 475.58. The proceeds of
10.32the bonds may also be used to fund necessary reserves and to pay credit enhancement fees,
10.33issuance costs, and other financing costs during the life of the debt.
10.34(c) The bonds may be secured by a bond resolution, or a trust indenture entered into
10.35by the council with a corporate trustee within or outside the state, which shall define the
11.1revenues and bond proceeds pledged for the payment and security of the bonds. The
11.2pledge shall be a valid charge on the revenues received by the council under section
11.3297A.9925. Neither the state, nor any municipality or political subdivision except the
11.4council, nor any member, officer, or employee of the council, is liable on the obligations.
11.5No mortgage of or security interest in any tangible real or personal property shall be
11.6granted to the bondholders or the trustee, but they shall have a valid security interest in the
11.7revenues and bond proceeds received by the council and pledged to the payment of the
11.8bonds. In the bond resolution or trust indenture, the council may make such covenants as
11.9it determines to be reasonable for the protection of the bondholders, including a covenant
11.10to issue general obligation bonds to refund the revenue bonds if and to the extent required
11.11to pay principal and interest on the bonds.
11.12EFFECTIVE DATE.This section is effective the day following final enactment,
11.13and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
11.14Washington.
11.15 Sec. 4. Minnesota Statutes 2012, section 473.39, subdivision 1p, is amended to read:
11.16 Subd. 1p. Obligations; additional authority after July 1, 2010. After July 1,
11.172010, in addition to other authority in this section, the council may issue certificates of
11.18indebtedness, bonds, or other obligations under this section in an amount not exceeding
11.19
11.20capital improvement program and for related costs, including the costs of issuance and
11.21sale of the obligations.
11.22EFFECTIVE DATE.This section is effective the day following final enactment,
11.23and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
11.24Washington.
11.25 Sec. 5. Minnesota Statutes 2012, section 473.39, subdivision 1r, is amended to read:
11.26 Subd. 1r. Obligations. After July 1, 2012, in addition to other authority under this
11.27section, the council may issue certificates of indebtedness, bonds, or other obligations under
11.28this section in an amount not exceeding
11.29
11.30
11.31
11.32funded using replacement transit service provider reserves that were reduced in 2012 as a
11.33result of Laws 2011, First Special Session chapter 3, article 1, section 4.
12.1EFFECTIVE DATE.This section is effective the day following final enactment,
12.2and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
12.3Washington.
12.4 Sec. 6. REPEALER.
12.5Minnesota Statutes 2012, section 473.39, subdivision 1q, is repealed.
