1.1 	A bill for an act
1.2 	relating to transportation; increasing motor fuel tax
1.3 	rates and providing for annual adjustments; expanding
1.4 	authority of counties to levy wheelage taxes;
1.5 	increasing base tax on passenger automobiles;
1.6 	authorizing counties to impose sales tax for
1.7 	transportation purposes; authorizing cities and
1.8 	counties to impose transportation impact fees;
1.9 	authorizing issuance of state trunk highway bonds for
1.10 	trunk highway improvements; authorizing issuance of
1.11 	state transportation bonds for construction and
1.12 	reconstruction of key local bridges; authorizing
1.13 	issuance of the county state-aid highway fund;
1.14 	exempting certain criteria from the Administrative
1.15 	Procedure Act; appropriating money; amending Minnesota
1.16 	Statutes 2004, sections 162.06, subdivision 1; 162.07,
1.17 	subdivision 1; 163.051; 168.013, subdivision 1a;
1.18 	174.52, subdivision 5; 296A.07, subdivision 3;
1.19 	296A.08, subdivision 2; proposing coding for new law
1.20 	in Minnesota Statutes, chapters 296A; 297A; 426.
1.21 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.22 	ARTICLE 1
1.23 	MOTOR FUEL TAXES

1.24 	Section 1. Minnesota Statutes 2004, section 296A.07,
1.25 	subdivision 3, is amended to read:
1.26 		Subd. 3.Rate of tax.  The gasoline excise tax is imposed
1.27 	at the following rates:
1.28 	(1) E85 is taxed at the rate of 14.2 17.75 cents per gallon
1.29 	until May 31, 2006, and 21.3 cents per gallon thereafter;
1.30 	(2) M85 is taxed at the rate of 11.4 14.25 cents per gallon
1.31 	until May 31, 2006, and 17.1 cents per gallon thereafter; and
1.32 	(3) all other gasoline is taxed at the rate of 20 25 cents
1.33 	per gallon until May 31, 2006, and 30 cents per gallon
2.1 	thereafter.
2.2 	
EFFECTIVE DATE. This section is effective June 1, 2005.

2.3 	Sec. 2. Minnesota Statutes 2004, section 296A.08,
2.4 	subdivision 2, is amended to read:
2.5 		Subd. 2.Rate of tax.  The special fuel excise tax is
2.6 	imposed at the following rates:
2.7 	(a) Liquefied petroleum gas or propane is taxed at the rate
2.8 	of 15 18.75 cents per gallon until May 31, 2006, and 22.5 cents
2.9 	per gallon thereafter.
2.10 	(b) Liquefied natural gas is taxed at the rate of 12 15 
2.11 	cents per gallon until May 31, 2006, and 18 cents per gallon
2.12 	thereafter.
2.13 	(c) Compressed natural gas is taxed at the rate of $1.739
2.14 	per thousand cubic feet; or 20 cents per gasoline equivalent, as
2.15 	defined by the National Conference on Weights and Measures,
2.16 	which is 5.66 pounds of natural gas following rates:  $2.174 per
2.17 	thousand cubic feet, or 25 cents per gasoline equivalent, until
2.18 	May 31, 2006, and $2.609 per thousand cubic feet, or 30 cents
2.19 	per gasoline equivalent thereafter.  For purposes of this
2.20 	paragraph "gasoline equivalent," as defined by the National
2.21 	Conference on Weights and Measures, is 5.66 pounds of natural
2.22 	gas.
2.23 	(d) All other special fuel is taxed at the same rate as the
2.24 	gasoline excise tax as specified in section 296A.07, subdivision
2.25 	2.  The tax is payable in the form and manner prescribed by the
2.26 	commissioner.
2.27 	
EFFECTIVE DATE. This section is effective June 1, 2005.

2.28 	Sec. 3. [296A.081] ANNUAL ADJUSTMENT.
2.29 	(a) On April 1, 2007, and each April 1 thereafter, the
2.30 	commissioner of revenue shall recompute and publish the rate of
2.31 	each fuel tax provided for in section 296A.07, subdivision 3,
2.32 	and 296A.08, subdivision 2.  The new rate for each such tax must
2.33 	be calculated by multiplying the rate in effect at the time of
2.34 	the calculation by an amount obtained under paragraph (b).  The
2.35 	new rate must be rounded to the nearest 0.1 cent and is
2.36 	effective on June 1 of each year.
3.1 	(b) Divide the annual average United States Consumer Price
3.2 	Index for all urban consumers, United States city average, as
3.3 	determined by the United States Department of Labor for the
3.4 	previous year by that annual average for the year before the
3.5 	previous year.
3.6 	(c) By a majority vote, the legislature may suspend the
3.7 	annual adjustment for any particular year or years.

3.8 	EFFECTIVE DATE. This section is effective April 1, 2007.

3.9 	ARTICLE 2
3.10 	MOTOR VEHICLE TAXES

3.11 	Section 1. Minnesota Statutes 2004, section 163.051, is
3.12 	amended to read:
3.13 	163.051  METROPOLITAN COUNTY WHEELAGE TAX.
3.14 		Subdivision 1.Tax authorized. The board of
3.15 	commissioners of each metropolitan county is authorized to levy
3.16 	by resolution a wheelage tax of $5 for the year 1972 and each
3.17 	subsequent year thereafter by resolution up to $20 on each motor
3.18 	vehicle, except motorcycles as defined in section 169.01,
3.19 	subdivision 4, which that is kept in such the county when not in
3.20 	operation and which that is subject to annual registration and
3.21 	taxation under chapter 168.  The board may provide by resolution
3.22 	for collection of the wheelage tax by county officials or it may
3.23 	request that the tax be collected by the state registrar of
3.24 	motor vehicles, and the state registrar of motor vehicles shall
3.25 	collect such the tax on behalf of the county if requested, as
3.26 	provided in subdivision 2.
3.27 		Subd. 2.Collection by registrar of motor vehicles. The
3.28 	wheelage tax levied by any metropolitan a county, if made
3.29 	collectible by the state registrar of motor vehicles, shall must 
3.30 	be certified by the county auditor to the registrar not later
3.31 	than August 1 in the year before the calendar year or years for
3.32 	which the tax is levied, and the registrar shall collect such 
3.33 	the tax with the motor vehicle taxes on the affected vehicles
3.34 	for such year or years.  Every owner and every operator of such 
3.35 	a motor vehicle subject to the wheelage tax shall furnish to the
3.36 	registrar all information requested by the registrar. No A 
4.1 	state motor vehicle tax on any such motor vehicle for any such
4.2 	year shall may not be received or deemed paid unless the
4.3 	applicable wheelage tax is paid therewith. The proceeds of the
4.4 	wheelage tax levied by any metropolitan county, less any amount
4.5 	retained by the registrar to pay costs of collection of the
4.6 	wheelage tax, shall be paid to the commissioner of finance and
4.7 	deposited in the state treasury to the credit of the county
4.8 	wheelage tax fund of each metropolitan county.
4.9 		Subd. 2a.Tax proceeds deposited; costs of collection;
4.10 	appropriation. Notwithstanding the provisions of any other law,
4.11 	the state registrar of motor vehicles shall deposit the proceeds
4.12 	of the wheelage tax imposed by subdivision 2, to the credit of
4.13 	the county wheelage tax road and bridge fund of each
4.14 	metropolitan county levying the tax.  The amount necessary to
4.15 	pay the costs of collection of said collecting the tax is
4.16 	appropriated to the state registrar of motor vehicles from the
4.17 	county wheelage tax road and bridge fund of each metropolitan 
4.18 	county to the state registrar of motor vehicles levying the tax.
4.19 		Subd. 3.Distribution to metropolitan county;
4.20 	appropriation. On or before April 1 in 1972 and each subsequent
4.21 	year, the commissioner of finance shall issue a warrant in favor
4.22 	of the treasurer of each metropolitan county for which the
4.23 	registrar has collected a wheelage tax in the amount of such tax
4.24 	then on hand in the county wheelage tax fund.  There is hereby
4.25 	appropriated from the county wheelage tax fund each year, to
4.26 	each metropolitan county entitled to payments authorized by this
4.27 	section, sufficient moneys to make such payments.
4.28 		Subd. 4.Use of tax. The treasurer of each metropolitan
4.29 	county receiving moneys under subdivision 3 shall deposit such
4.30 	moneys in the county road and bridge fund.  The moneys shall be
4.31 	used for purposes authorized by law which are highway purposes
4.32 	within the meaning of the Minnesota Constitution, article 14.
4.33 		Subd. 5.Effect on road and bridge levy. The county
4.34 	auditor of each metropolitan county shall reduce the amount of
4.35 	the property taxes levied pursuant to law in 1973 for collection
4.36 	in 1974, by the board of commissioners of such county for the
5.1 	county road and bridge fund, by the following amount:  Anoka
5.2 	County, $341,750; Carver County, $86,725; Dakota County,
5.3 	$386,165; Hennepin County, $2,728,425; Ramsey County,
5.4 	$1,276,815; Scott County, $104,805; Washington County, $227,220,
5.5 	and shall spread only the balance thereof on the tax rolls for
5.6 	collection in 1972.  The county auditor shall also reduce the
5.7 	amount of such taxes levied pursuant to law in 1972 and any
5.8 	subsequent year, for collection in the respective ensuing years,
5.9 	by the amount of wheelage taxes received by the county in the 12
5.10 	months immediately preceding such levy.
5.11 		Subd. 6.Metropolitan county defined. "Metropolitan
5.12 	county" means any of the counties of Anoka, Carver, Dakota,
5.13 	Hennepin, Ramsey, Scott, and Washington.
5.14 		Subd. 7.Offenses; penalties; application of other laws.
 5.15 	Any owner or operator of a motor vehicle who shall 
5.16 	willfully give gives any false information relative to the tax
5.17 	herein authorized under this section to the registrar of motor
5.18 	vehicles or any metropolitan county, or who shall willfully fail
5.19 	or refuse fails or refuses to furnish any such
5.20 	information, shall be is guilty of a misdemeanor.  Except as
5.21 	otherwise herein provided, the collection and payment of a
5.22 	wheelage tax and all matters relating thereto shall be is 
5.23 	subject to all provisions of law relating to collection and
5.24 	payment of motor vehicle taxes so far as applicable.

5.25 	Sec. 2. Minnesota Statutes 2004, section 168.013,
5.26 	subdivision 1a, is amended to read:
5.27 		Subd. 1a.Passenger automobile; hearse.  (a) On passenger
5.28 	automobiles as defined in section 168.011, subdivision 7, and
5.29 	hearses, except as otherwise provided, the tax shall be $10 $35 
5.30 	plus an additional tax equal to 1.25 percent of the base value.
5.31 	(b) Subject to the classification provisions herein, "base
5.32 	value" means the manufacturer's suggested retail price of the
5.33 	vehicle including destination charge using list price
5.34 	information published by the manufacturer or determined by the
5.35 	registrar if no suggested retail price exists, and shall not
5.36 	include the cost of each accessory or item of optional equipment
6.1 	separately added to the vehicle and the suggested retail price.
6.2 	(c) If the manufacturer's list price information contains a
6.3 	single vehicle identification number followed by various
6.4 	descriptions and suggested retail prices, the registrar shall
6.5 	select from those listings only the lowest price for determining
6.6 	base value.
6.7 	(d) If unable to determine the base value because the
6.8 	vehicle is specially constructed, or for any other reason, the
6.9 	registrar may establish such value upon the cost price to the
6.10 	purchaser or owner as evidenced by a certificate of cost but not
6.11 	including Minnesota sales or use tax or any local sales or other
6.12 	local tax.
6.13 	(e) The registrar shall classify every vehicle in its
6.14 	proper base value class as follows:
6.15 	FROM                   TO
6.16 	                      $  0                $199.99
6.17 	                       200                 399.99
6.18 	and thereafter a series of classes successively set in brackets
6.19 	having a spread of $200 consisting of such number of classes as
6.20 	will permit classification of all vehicles.
6.21 	(f) The base value for purposes of this section shall be
6.22 	the middle point between the extremes of its class.
6.23 	(g) The registrar shall establish the base value, when new,
6.24 	of every passenger automobile and hearse registered prior to the
6.25 	effective date of Extra Session Laws 1971, chapter 31, using
6.26 	list price information published by the manufacturer or any
6.27 	nationally recognized firm or association compiling such data
6.28 	for the automotive industry.  If unable to ascertain the base
6.29 	value of any registered vehicle in the foregoing manner, the
6.30 	registrar may use any other available source or method.  The
6.31 	registrar shall calculate tax using base value information
6.32 	available to dealers and deputy registrars at the time the
6.33 	application for registration is submitted.  The tax on all
6.34 	previously registered vehicles shall be computed upon the base
6.35 	value thus determined taking into account the depreciation
6.36 	provisions of paragraph (h).
7.1 	(h) The annual additional tax computed upon the base value
7.2 	as provided herein, during the first and second years of vehicle
7.3 	life shall be computed upon 100 percent of the base value; for
7.4 	the third and fourth years, 90 percent of such value; for the
7.5 	fifth and sixth years, 75 percent of such value; for the seventh
7.6 	year, 60 percent of such value; for the eighth year, 40 percent
7.7 	of such value; for the ninth year, 30 percent of such value; for
7.8 	the tenth year, ten percent of such value; for the 11th and each
7.9 	succeeding year, the sum of $25.
7.10 	In no event shall the annual additional tax be less than $25.
7.11 	The total tax under this subdivision shall not exceed $189 for
7.12 	the first renewal period and shall not exceed $99 for subsequent
7.13 	renewal periods.  The total tax under this subdivision on any
7.14 	vehicle filing its initial registration in Minnesota in the
7.15 	second year of vehicle life shall not exceed $189 $214 and shall
7.16 	not exceed $99 $124 for subsequent renewal periods.  The total
7.17 	tax under this subdivision on any vehicle filing its initial
7.18 	registration in Minnesota in the third or subsequent year of
7.19 	vehicle life shall not exceed $99 $124 and shall not exceed
7.20 	$99 $124 in any subsequent renewal period.
7.21 	(i) As used in this subdivision and section 168.017, the
7.22 	following terms have the meanings given:  "initial registration"
7.23 	means the 12 consecutive months calendar period from the day of
7.24 	first registration of a vehicle in Minnesota; and "renewal
7.25 	periods" means the 12 consecutive calendar months periods
7.26 	following the initial registration period.

7.27 	ARTICLE 3
7.28 	SALES TAXES FOR TRANSPORTATION

7.29 	Section 1. [297A.996] LOCAL SALES TAXES FOR
7.30 	TRANSPORTATION.
7.31 		Subdivision 1.Authorization. A county may by resolution
7.32 	impose a general sales tax on taxable sales within the county in
7.33 	addition to the taxes imposed under sections 297A.62 to 297A.64
7.34 	and any other local sales taxes imposed in the county.  Revenue
7.35 	from taxes authorized under this section may only be spent in
7.36 	accordance with subdivision 3.
8.1 		Subd. 2.Tax base. The tax applies to sales taxable
8.2 	under this chapter that occur within the county.  Taxable
8.3 	services are subject to a county's sales tax if they are
8.4 	performed either:
8.5 	(1) within the county; or 
8.6 	(2) partly within and partly without the county and more of
8.7 	the service is performed within the county, based on the cost of
8.8 	performance.
8.9 		Subd. 3.Use tax. A compensating use tax applies, at the
8.10 	same rate as the sales tax, on the use, storage, distribution,
8.11 	or consumption of tangible personal property or taxable services.
8.12 		Subd. 4.Rate of tax. (a) The county board shall by
8.13 	resolution set the rate of the tax, which except as provided in
8.14 	paragraph (b) may not exceed one-half of one percent.
8.15 	(b) In lieu of imposing the tax authorized under this
8.16 	section at the rate provided in paragraph (a) on motor vehicles
8.17 	purchased by a retail consumer from any person engaged within
8.18 	the county in the business of selling motor vehicles at retail,
8.19 	the county board shall set the tax rate at not more than $20 for
8.20 	each such taxable sale.
8.21 		Subd. 5.Taxable price. For purposes of the tax
8.22 	authorized under this section the "taxable price" of a retail
8.23 	sale does not include the state sales tax or any sales tax
8.24 	imposed by a city within the county on that sale.
8.25 		Subd. 6.Exemptions. (a) All goods or services that are
8.26 	otherwise exempt from taxation under this chapter are exempt
8.27 	from a tax authorized under this section.
8.28 	(b) The gross receipts from the sale of tangible personal
8.29 	property that meets the requirement of section 297A.68,
8.30 	subdivision 15, are exempt, except the qualification test
8.31 	applies based on the boundaries of the county instead of the
8.32 	state of Minnesota.
8.33 	(c) All mobile transportation equipment, and parts and
8.34 	accessories attached to or to be attached to the equipment, are
8.35 	exempt if purchased by a holder of a motor carrier direct pay
8.36 	permit under section 297A.90.
9.1 		Subd. 7.Application of other laws. (a) Section 297A.99,
9.2 	subdivisions 7, 9, 10, and 11, apply to taxes authorized under
9.3 	this section.
9.4 	(b) The commissioner has the same powers to assess and
9.5 	collect the taxes as are given the commissioner in chapters 270,
9.6 	289A, and 297A to assess and collect sales and use taxes.
9.7 		Subd. 8.Joint powers agreements. Two or more counties
9.8 	may enter into a joint powers agreement and establish a joint
9.9 	powers board under section 471.59 to exercise the powers granted
9.10 	to individual counties under subdivision 1.
9.11 		Subd. 9.Use of revenue. A county receiving revenue from
9.12 	a tax imposed under subdivision 1 may use the revenue only for:
9.13 	(1) design, engineering, acquisition of real property,
9.14 	construction, reconstruction, or maintenance of county highways
9.15 	and county state-aid highways;
9.16 	(2) public transit capital improvements; and 
9.17 	(3) operating assistance to public transit systems.

9.18 	ARTICLE 4
9.19 	TRANSPORTATION IMPACT FEES

9.20 	Section 1. [426.21] TRANSPORTATION IMPACT FEES.
9.21 		Subdivision 1.Fees may be imposed. A city or county may
9.22 	by ordinance impose a transportation impact fee on each building
9.23 	permit it issues.
9.24 		Subd. 2.Adoption of plan. Before imposing a
9.25 	transportation impact fee, a city or county must adopt a safety
9.26 	and intersection improvement plan that identifies and estimates
9.27 	the cost of:
9.28 	(1) each intersection that the city or county intends to
9.29 	construct, reconstruct, or improve within the five-year period
9.30 	covered by the plan, including intersections of a county highway
9.31 	or city street with a trunk highway where a share of the total
9.32 	cost will be paid by the city or county; and 
9.33 	(2) each significant highway safety hazard that the city or
9.34 	county intends to eliminate or ameliorate within the five-year
9.35 	period covered by the plan.
9.36 	The plan must provide for a revision of the plan at least
10.1 	once every five years.
10.2 		Subd. 3.Use of fees. A city or county imposing a
10.3 	transportation impact fee may spend the revenue from the fee
10.4 	only for projects identified in its safety and intersection
10.5 	improvement plan.
10.6 		Subd. 4.Calculation of fee. A city or county imposing a
10.7 	transportation impact fee under this section must provide by
10.8 	ordinance for:
10.9 	(1) a reasonable classification of all property in the city
10.10 	according to trips generated by the property on the streets and
10.11 	highways of the city or county imposing the fee;
10.12 	(2) a determination of the average daily number of trips
10.13 	generated by a single-family dwelling in the city or county; and 
10.14 	(3) a trip generation rate for each class of property based
10.15 	on a multiple of the rate for a single-family dwelling.  The
10.16 	transportation impact fee must be based on the trip generation
10.17 	rate assigned to each class of property.  In determining a
10.18 	transportation impact fee for any property a city or county may
10.19 	take into consideration the type and loading of the traffic
10.20 	generated by the property.
10.21 		Subd. 5.Exemptions. Building permits for the following
10.22 	projects are exempt from transportation impact fees:
10.23 	(1) alterations or expansions of an existing dwelling unit
10.24 	where no additional units are created and the use is not
10.25 	changed;
10.26 	(2) construction of accessory buildings or structures that
10.27 	will not increase the number of trips generated by the property;
10.28 	(3) replacement on the same land of a destroyed or
10.29 	partially destroyed building or structure with a new building or
10.30 	structure of substantially the same size and use; and 
10.31 	(4) any new construction that does not generate trips on a
10.32 	street or highway identified in the city's or county's safety
10.33 	and intersection improvement plan.
10.34 		Subd. 6.Collection. A city or county may collect a
10.35 	transportation impact fee at the time it issues a building
10.36 	permit, or may provide that the fee be paid over a period not to
11.1 	exceed ten years and at the same time and in the same manner as
11.2 	taxes on the real property for which the building permit is
11.3 	issued.  Payment of a fee that is made at a time other than the
11.4 	time the building permit is issued is subject to the same
11.5 	interest and penalties as city or county taxes and special
11.6 	assessments on real property.
11.7 		Subd. 7.Notice; hearing. An ordinance under this
11.8 	section must provide that before imposing a transportation
11.9 	impact fee on any building permit the city or county must give
11.10 	the person to whom the permit is issued a reasonable notice and
11.11 	opportunity for a public hearing at which the person may present
11.12 	evidence relating to the determination of the fee.

11.13 	ARTICLE 5
11.14 	APPROPRIATIONS AND BOND AUTHORIZATIONS

11.15 	Section 1. APPROPRIATIONS.
 11.16 		Subdivision 1.Appropriation; trunk highway
11.17 	fund. $100,000,000 is appropriated from the bond proceeds
11.18 	account in the trunk highway fund to the commissioner of
11.19 	transportation for improvements to the state trunk highway
11.20 	system.  Of this appropriation:
11.21 	(1) $50,000,000 is for improvements to the interregional
11.22 	corridor system as identified by the commissioner where the
11.23 	improvements are physically located entirely or primarily
11.24 	outside the seven-county metropolitan area; and 
11.25 	(2) $50,000,000 is for the elimination of traffic
11.26 	bottlenecks on arterial highways located entirely within the
11.27 	seven-county metropolitan area.
11.28 		Subd. 2.Appropriation; state transportation
11.29 	fund. $50,000,000 is appropriated from the state transportation
11.30 	fund to the commissioner of transportation for grants under
11.31 	Minnesota Statutes, section 174.50, to match federal money and
11.32 	to replace or rehabilitate local deficient bridges.  Political
11.33 	subdivisions may use grants made under this subdivision to
11.34 	construct or reconstruct bridges, including:
11.35 	(1) matching federal aid grants to construct or reconstruct
11.36 	key bridges;
12.1 	(2) paying the costs of preliminary engineering and
12.2 	environmental studies authorized under Minnesota Statutes,
12.3 	section 174.50, subdivision 6a;
12.4 	(3) paying the costs to abandon an existing bridge that is
12.5 	deficient and in need of replacement, but where no replacement
12.6 	will be made; and 
12.7 	(4) paying the costs to construct a road or street to
12.8 	facilitate the abandonment of an existing bridge determined by
12.9 	the commissioner to be deficient, if the commissioner determines
12.10 	that construction of the road or street is more economical than
12.11 	replacing the existing bridge.
12.12 		Subd. 3.Appropriation; bond proceeds fund. $50,000,000
12.13 	is appropriated from the bond proceeds fund to the commissioner
12.14 	of transportation for deposit in the local road improvement
12.15 	fund.  The commissioner shall credit the amount so appropriated
12.16 	to the local account for routes of regional significance.

12.17 	Sec. 2. BOND SALE AUTHORIZATIONS.
 12.18 		Subdivision 1.Trunk highway bonds. To provide the money
12.19 	appropriated in section 1, subdivision 1, from the bond proceeds
12.20 	account in the trunk highway fund, the commissioner of finance
12.21 	shall sell and issue bonds of the state in an amount up to
12.22 	$100,000,000 in the manner, upon the terms, and with the effect
12.23 	prescribed by Minnesota Statutes, sections 167.50 to 167.52, and
12.24 	by the Minnesota Constitution, article XIV, section 11, at the
12.25 	times and in the amounts requested by the commissioner of
12.26 	transportation.  The proceeds of the bonds, except accrued
12.27 	interest and any premium received on the sale of the bonds, must
12.28 	be credited to the bond proceeds account in the trunk highway
12.29 	fund.
12.30 		Subd. 2.Transportation bonds. To provide the money
12.31 	appropriated from the state transportation fund under section 1,
12.32 	subdivision 2, the commissioner of finance shall, on request of
12.33 	the commissioner of transportation, issue and sell Minnesota
12.34 	state transportation bonds for the purposes provided in
12.35 	Minnesota Statutes, section 174.51, subdivision 1, in the
12.36 	aggregate principal amount of $50,000,000 in the manner and on
13.1 	the conditions prescribed in Minnesota Statutes, section 174.51,
13.2 	and in the Minnesota Constitution, article XI.  The proceeds of
13.3 	the bonds must be deposited in the Minnesota state
13.4 	transportation fund for expenditure in accordance with section
13.5 	1, subdivision 2, and with Minnesota Statutes, section 174.50.
13.6 		Subd. 3.State bonds. To provide the money appropriated
13.7 	from the bond proceeds fund under section 1, subdivision 3, the
13.8 	commissioner of finance shall sell and issue bonds of the state
13.9 	in an amount up to $50,000,000 in the manner, on the terms, and
13.10 	with the effect prescribed by Minnesota Statutes, sections
13.11 	16A.631 to 16A.675, and by the Minnesota Constitution, article
13.12 	XI, sections 4 to 7.

13.13 	ARTICLE 6
13.14 	LOCAL ROADS

13.15 	Section 1. Minnesota Statutes 2004, section 162.06,
13.16 	subdivision 1, is amended to read:
13.17 		Subdivision 1.Estimate.  By December 15 of each year the
13.18 	commissioner shall estimate the amount amounts of money that
13.19 	will be available to the county state-aid highway fund during
13.20 	that fiscal year:
13.21 	(1) from the apportionment sum, consisting of the amounts
13.22 	from (i) motor vehicle registration tax revenue and (ii) motor
13.23 	fuel tax revenue from tax rates in effect on May 31, 2005; and 
13.24 	(2) from the excess sum, consisting of the amount from fuel
13.25 	tax rates in excess of the rates in effect on May 31, 2005.
13.26 	The amount amounts available must be based on actual receipts
13.27 	from July 1 through November 30, the unallocated fund balance,
13.28 	and the projected receipts for the remainder of the fiscal
13.29 	year.  The total available, except for deductions as provided
13.30 	herein, shall be apportioned by the commissioner to the counties
13.31 	as hereinafter provided.

13.32 	Sec. 2. Minnesota Statutes 2004, section 162.07,
13.33 	subdivision 1, is amended to read:
13.34 		Subdivision 1.formula formulas. (a) After deducting for
13.35 	administrative costs and for the disaster account and research
13.36 	account and state park roads as heretofore provided, the
14.1 	remainder of the total sum provided for in section 162.06,
14.2 	subdivision 1, shall be identified as the apportionment sum and
14.3 	the excess sum.
14.4 	(b) The apportionment sum shall be apportioned by the
14.5 	commissioner to the several counties on the basis of the needs
14.6 	of the counties as determined in accordance with the following
14.7 	formula:
14.8 	(a) (1) An amount equal to ten percent of the apportionment
14.9 	sum shall be apportioned equally among the 87 counties.
14.10 	(b) (2) An amount equal to ten percent of the apportionment
14.11 	sum shall be apportioned among the several counties so that each
14.12 	county shall receive of such amount the percentage that its
14.13 	motor vehicle registration for the calendar year preceding the
14.14 	one last past, determined by residence of registrants, bears to
14.15 	the total statewide motor vehicle registration.
14.16 	(c) (3) An amount equal to 30 percent of the apportionment
14.17 	sum shall be apportioned among the several counties so that each
14.18 	county shall receive of such amount the percentage that its
14.19 	total lane-miles of approved county state-aid highways bears to
14.20 	the total lane-miles of approved statewide county state-aid
14.21 	highways.  In 1997 and subsequent years no county may receive,
14.22 	as a result of an apportionment under this clause based on
14.23 	lane-miles rather than miles of approved county state-aid
14.24 	highways, an apportionment that is less than its apportionment
14.25 	in 1996.
14.26 	(d) (3) An amount equal to 50 percent of the apportionment
14.27 	sum shall be apportioned among the several counties so that each
14.28 	county shall receive of such amount the percentage that its
14.29 	money needs bears to the sum of the money needs of all of the
14.30 	individual counties; provided, that the percentage of such
14.31 	amount that each county is to receive shall be adjusted so that
14.32 	each county shall receive in 1958 a total apportionment at least
14.33 	ten percent greater than its total 1956 apportionments from the
14.34 	state road and bridge fund; and provided further that those
14.35 	counties whose money needs are thus adjusted shall never receive
14.36 	a percentage of the apportionment sum less than the percentage
15.1 	that such county received in 1958.
15.2 	(c) The excess sum shall be apportioned by the commissioner
15.3 	to the counties as determined in accordance with the following
15.4 	formula:
15.5 	(1) An amount equal to 40 percent of the excess sum shall
15.6 	be apportioned among the several counties so that each county
15.7 	shall receive of the amount the percentage that its motor
15.8 	vehicle registration for the calendar year preceding the one
15.9 	last past, determined by residence of registrants, bears to the
15.10 	total statewide motor vehicle registration.
15.11 	(2) An amount equal to 60 percent of the excess sum shall
15.12 	be apportioned among the several counties so that each county
15.13 	shall receive of such amount the percentage that its money needs
15.14 	bears to the sum of the money needs of all counties.

15.15 	Sec. 3. Minnesota Statutes 2004, section 174.52,
15.16 	subdivision 5, is amended to read:
15.17 		Subd. 5.Grant procedures and criteria.  The commissioner
15.18 	shall establish procedures for statutory or home rule charter
15.19 	cities, towns, and counties to apply for grants or loans from
15.20 	the fund and criteria to be used to select projects for funding.
15.21 	The commissioner shall establish these procedures and criteria
15.22 	in consultation with representatives appointed by the
15.23 	Association of Minnesota Counties, League of Minnesota Cities,
15.24 	and Minnesota Township Officers Association.  The criteria for
15.25 	determining project priority and the amount of a grant or loan
15.26 	must be based upon consideration of:
15.27 	(1) the availability of other state, federal, and local
15.28 	funds;
15.29 	(2) the regional significance of the route;
15.30 	(3) effectiveness of the proposed project in eliminating a
15.31 	transportation system deficiency;
15.32 	(4) the number of persons who will be positively impacted
15.33 	by the project;
15.34 	(5) the project's contribution to other local, regional, or
15.35 	state economic development or redevelopment efforts; and
15.36 	(6) ability of the local unit of government to adequately
16.1 	provide for the safe operation and maintenance of the facility
16.2 	upon project completion.
16.3 	Adoption of procedures and criteria under this subdivision is
16.4 	not subject to the Administrative Procedure Act.