1.1 	A bill for an act
1.2 	relating to metropolitan government; transferring transit functions from the 
1.3 	Metropolitan Council; creating the Minnesota Transit Authority; increasing 
1.4 	the general sales tax and dedicating the proceeds to the authority; abolishing 
1.5 	certain local sales tax authority;amending Minnesota Statutes 2008, sections 
1.6 	10A.01, subdivision 35; 297A.62, subdivision 1; 297A.94; 297A.99, subdivision 
1.7 	1; 297B.02, subdivision 1; 398A.04, subdivision 1; 398A.07, subdivision 1; 
1.8 	473.121, by adding a subdivision; 473.375; 473.382; 473.384; 473.385; 473.386; 
1.9 	473.3875; 473.388; 473.39, subdivisions 1, 1m, 2, 4, 5, as added; 473.392; 
1.10 	473.3997; 473.405; 473.4051, subdivision 1; 473.407, subdivisions 1, 3, 4, 5; 
1.11 	473.408; 473.409; 473.411; 473.415, subdivision 1; 473.416; 473.42; 473.436; 
1.12 	473.446; 473.448; 473.449; proposing coding for new law in Minnesota Statutes, 
1.13 	chapter 473; repealing Minnesota Statutes 2008, sections 297A.992; 297A.993; 
1.14 	398A.04, subdivisions 2, 3; 398A.10; 473.384, subdivisions 6, 7; 473.387; 
1.15 	473.391; 473.399, subdivisions 1, 1a, 4, 5; 473.3994, subdivisions 1a, 2, 3, 4, 5, 
1.16 	7, 8, 9, 10, 14; 473.4461; Laws 2008, chapter 152, article 6, section 8.
1.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.18 	Section 1. Minnesota Statutes 2008, section 10A.01, subdivision 35, is amended to 
1.19 	read:
1.20 		Subd. 35.Public official. "Public official" means any:
1.21 	(1) member of the legislature;
1.22 	(2) individual employed by the legislature as secretary of the senate, legislative 
1.23 	auditor, chief clerk of the house of representatives, revisor of statutes, or researcher, 
1.24 	legislative analyst, or attorney in the Office of Senate Counsel and Research or House 
1.25 	Research;
1.26 	(3) constitutional officer in the executive branch and the officer's chief administrative 
1.27 	deputy;
1.28 	(4) solicitor general or deputy, assistant, or special assistant attorney general;
2.1 	(5) commissioner, deputy commissioner, or assistant commissioner of any state 
2.2 	department or agency as listed in section 15.01 or 15.06, or the state chief information 
2.3 	officer;
2.4 	(6) member, chief administrative officer, or deputy chief administrative officer of a 
2.5 	state board or commission that has either the power to adopt, amend, or repeal rules under 
2.6 	chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;
2.7 	(7) individual employed in the executive branch who is authorized to adopt, amend, 
2.8 	or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
2.9 	(8) executive director of the State Board of Investment;
2.10 	(9) deputy of any official listed in clauses (7) and (8);
2.11 	(10) judge of the Workers' Compensation Court of Appeals;
2.12 	(11) administrative law judge or compensation judge in the State Office of 
2.13 	Administrative Hearings or unemployment law judge in the Department of Employment 
2.14 	and Economic Development;
2.15 	(12) member, regional administrator, division director, general counsel, or operations 
2.16 	manager of the Metropolitan Council;
2.17 	(13) member or chief administrator of a metropolitan agency;
2.18 	(14) director of the Division of Alcohol and Gambling Enforcement in the 
2.19 	Department of Public Safety;
2.20 	(15) member or executive director of the Higher Education Facilities Authority;
2.21 	(16) member of the board of directors or president of Enterprise Minnesota, Inc.; 
2.22 	(17) member of the board of directors or executive director of the Minnesota State 
2.23 	High School League;
2.24 	(18) member of the Minnesota Ballpark Authority established in section 473.755; 
2.25 	(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;
2.26 	(20) manager of a watershed district, or member of a watershed management 
2.27 	organization as defined under section 103B.205, subdivision 13; 
2.28 	(21) supervisor of a soil and water conservation district;
2.29 	(22) director of Explore Minnesota Tourism; or
2.30 	(23) citizen member of the Lessard Outdoor Heritage Council established in section 
2.31 	97A.056; or
2.32 	(22) member of the Minnesota Transit Authority established in section 473.372.

2.33 	Sec. 2. Minnesota Statutes 2008, section 297A.62, subdivision 1, is amended to read:
2.34 		Subdivision 1.Generally. Except as otherwise provided in subdivision 3 or in this 
2.35 	chapter, a sales tax of 6.5 6.75 percent is imposed on the gross receipts from retail sales as 
3.1 	defined in section 297A.61, subdivision 4, made in this state or to a destination in this 
3.2 	state by a person who is required to have or voluntarily obtains a permit under section 
3.3 	297A.83, subdivision 1. 

3.4 	Sec. 3. Minnesota Statutes 2008, section 297A.94, is amended to read:
3.5 	297A.94 DEPOSIT OF REVENUES.
3.6 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
3.7 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
3.8 	treasury and credit them to the general fund.
3.9 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
3.10 	account in the special revenue fund if:
3.11 	(1) the taxes are derived from sales and use of property and services purchased for 
3.12 	the construction and operation of an agricultural resource project; and
3.13 	(2) the purchase was made on or after the date on which a conditional commitment 
3.14 	was made for a loan guaranty for the project under section 41A.04, subdivision 3.
3.15 	The commissioner of finance shall certify to the commissioner the date on which the 
3.16 	project received the conditional commitment. The amount deposited in the loan guaranty 
3.17 	account must be reduced by any refunds and by the costs incurred by the Department of 
3.18 	Revenue to administer and enforce the assessment and collection of the taxes.
3.19 	(c) The commissioner shall deposit the revenues, including interest and penalties, 
3.20 	derived from the taxes imposed on sales and purchases included in section 297A.61, 
3.21 	subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them 
3.22 	as follows: 
3.23 	(1) first to the general obligation special tax bond debt service account in each fiscal 
3.24 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and
3.25 	(2) after the requirements of clause (1) have been met, the balance to the general 
3.26 	fund.
3.27 	(d) The commissioner shall deposit the revenues, including interest and penalties, 
3.28 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
3.29 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
3.30 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
3.31 	subdivision 5, for the previous calendar year.
3.32 	(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and 
3.33 	for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and 
3.34 	penalties, transmitted to the commissioner under section 297A.65, must be deposited by 
3.35 	the commissioner in the state treasury as follows:
4.1 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account 
4.2 	in the game and fish fund, and may be spent only on activities that improve, enhance, or 
4.3 	protect fish and wildlife resources, including conservation, restoration, and enhancement 
4.4 	of land, water, and other natural resources of the state;
4.5 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
4.6 	may be spent only for state parks and trails;
4.7 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
4.8 	may be spent only on metropolitan park and trail grants;
4.9 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
4.10 	may be spent only on local trail grants; and
4.11 	(5) two percent of the receipts must be deposited in the natural resources fund, 
4.12 	and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and 
4.13 	Conservatory, and the Duluth Zoo.
4.14 	(f) The revenue dedicated under paragraph (e) may not be used as a substitute 
4.15 	for traditional sources of funding for the purposes specified, but the dedicated revenue 
4.16 	shall supplement traditional sources of funding for those purposes. Land acquired with 
4.17 	money deposited in the game and fish fund under paragraph (e) must be open to public 
4.18 	hunting and fishing during the open season, except that in aquatic management areas or 
4.19 	on lands where angling easements have been acquired, fishing may be prohibited during 
4.20 	certain times of the year and hunting may be prohibited. At least 87 percent of the money 
4.21 	deposited in the game and fish fund for improvement, enhancement, or protection of fish 
4.22 	and wildlife resources under paragraph (e) must be allocated for field operations.
4.23 	(g) The commissioner shall deposit 3.7 percent of the revenues, including interest 
4.24 	and penalties, derived from taxes imposed under sections 297A.62 and 297A.63 in the 
4.25 	state treasury to be credited to the Minnesota Transit Authority account.

4.26 	Sec. 4. Minnesota Statutes 2008, section 297A.99, subdivision 1, is amended to read:
4.27 		Subdivision 1. Authorization; scope. (a) A political subdivision of this state may 
4.28 	impose a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3) if 
4.29 	permitted by special law enacted prior to May 20, 2008, or (4) if the political subdivision 
4.30 	enacted and imposed the tax before January 1, 1982, and its predecessor provision. 
4.31 	(b) This section governs the imposition of a general sales tax by the political 
4.32 	subdivision. The provisions of this section preempt the provisions of any special law: 
4.33 	(1) enacted before June 2, 1997, or 
4.34 	(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law 
4.35 	provision from this section's rules by reference. 
5.1 	(c) This section does not apply to or preempt a sales tax on motor vehicles or a 
5.2 	special excise tax on motor vehicles.
5.3 	(d) Until after May 31, 2010, a political subdivision may not advertise, promote, 
5.4 	expend funds, or hold a referendum to support imposing a local option sales tax unless 
5.5 	it is for extension of an existing tax or the tax was authorized by a special law enacted 
5.6 	prior to May 20, 2008.

5.7 	Sec. 5. Minnesota Statutes 2008, section 297B.02, subdivision 1, is amended to read:
5.8 		Subdivision 1.Rate. There is imposed an excise tax at the rate provided in chapter 
5.9 	297A  of 6.5 percent on the purchase price of any motor vehicle purchased or acquired, 
5.10 	either in or outside of the state of Minnesota, which is required to be registered under 
5.11 	the laws of this state.
5.12 	The excise tax is also imposed on the purchase price of motor vehicles purchased 
5.13 	or acquired on Indian reservations when the tribal council has entered into a sales tax on 
5.14 	motor vehicles refund agreement with the state of Minnesota.

5.15 	Sec. 6. Minnesota Statutes 2008, section 398A.04, subdivision 1, is amended to read:
5.16 		Subdivision 1.General. An authority may exercise all the powers necessary or 
5.17 	desirable to implement the powers specifically granted in this section, and in exercising 
5.18 	the powers is deemed to be performing an essential governmental function and exercising 
5.19 	a part of the sovereign power of the state, and is a local government unit and political 
5.20 	subdivision of the state. Without limiting the generality of the foregoing, the authority 
5.21 	may:
5.22 	(a) sue and be sued, have a seal, which may but need not be affixed to documents as 
5.23 	directed by the board, make and perform contracts, and have perpetual succession;
5.24 	(b)  acquire real and personal property within or outside its taxing jurisdiction, by 
5.25 	purchase, gift, devise, condemnation, conditional sale, lease, lease purchase, or otherwise; 
5.26 	or for purposes, including the facilitation of an economic development project pursuant to 
5.27 	section  383B.81 or  469.091 or  469.175, subdivision 7, that also improve rail service; and
5.28 	(c)  hold, manage, control, sell, convey, lease, mortgage, or otherwise dispose of real 
5.29 	or personal property; and
5.30 	(d) make grants or otherwise appropriate funds to the Department of Transportation, 
5.31 	the Metropolitan Council, or any other state or local governmental unit for the purposes 
5.32 	described in subdivision 2 with respect to railroad facilities located or to be located within 
5.33 	the authority's jurisdiction, whether or not the facilities will be acquired, constructed, 
5.34 	owned, or operated by the authority.

6.1 	Sec. 7. Minnesota Statutes 2008, section 398A.07, subdivision 1, is amended to read:
6.2 		Subdivision 1.Authorization. An authority may from time to time issue bonds, 
6.3 	or other obligations however designated, in principal amounts as it shall deem necessary 
6.4 	to fulfill its purpose and to exercise any of its powers, to provide funds for operating 
6.5 	expenses in anticipation of revenues of the current year, or for capital expenditures in 
6.6 	anticipation of the issuance of long term bonds or the receipt of a grant or loan of state or 
6.7 	federal funds, to refund the principal of or interest or redemption premiums on outstanding 
6.8 	bonds whether or not the amounts refunded have become due and payable, to establish 
6.9 	or increase reserves to secure the payment of bonds or interest on them, and to pay costs 
6.10 	and expenses of the issuance of the bonds.

6.11 	Sec. 8. Minnesota Statutes 2008, section 473.121, is amended by adding a subdivision 
6.12 	to read:
6.13 		Subd. 16a.Minnesota Transit Authority. "Minnesota Transit Authority" or 
6.14 	"authority" means the Minnesota Transit Authority established by section 473.372.

6.15 	Sec. 9. [473.372] MINNESOTA TRANSIT AUTHORITY; CREATION.
6.16 		Subdivision 1.Creation. Metro Transit, an operating division of the Metropolitan 
6.17 	Council, is established as an independent authority named the Minnesota Transit Authority 
6.18 	with statewide jurisdiction. The Minnesota Transit Authority is established as a public 
6.19 	corporation and political subdivision of the state. The authority shall be composed of 
6.20 	members, selected as follows:
6.21 	(1) the mayor of Minneapolis or a member of the Minneapolis City Council, chosen 
6.22 	by the Minneapolis City Council;
6.23 	(2) the mayor of St. Paul or a member of the St. Paul City Council, chosen by 
6.24 	the St. Paul City Council;
6.25 	(3) one Hennepin county commissioner chosen by the Hennepin County Board;
6.26 	(4) one Ramsey county commissioner chosen by the Ramsey County Board;
6.27 	(5) county commissioners from Anoka, Carver, Dakota, Scott, and Washington 
6.28 	counties; and
6.29 	(6) two residents of greater Minnesota, one each from north and south of the 
6.30 	metropolitan area, appointed by the governor. For purposes of this paragraph, the counties 
6.31 	of McLeod, Renville, and Yellow Medicine shall be the northernmost counties considered 
6.32 	to be south of the metropolitan area.
6.33 		Subd. 2.Terms. All members shall serve for three-year terms, except that the 
6.34 	first members appointed under subdivision 1, clauses (1) and (4), and the first member 
7.1 	appointed from north of the metropolitan area under subdivision 1, clause (6), shall serve 
7.2 	for one-year terms. The first members appointed under subdivision 1, clause (5), shall 
7.3 	serve two-year terms.
7.4 		Subd. 3.Voting. All members shall have one vote, except members appointed 
7.5 	under subdivision 1, clause (5), shall have one-half of a vote.
7.6 		Subd. 4.Chair. The chair shall be elected from among the members, preside at all 
7.7 	meetings of the authority, if present, and perform all other assigned duties and functions. 
7.8 	The authority may appoint from among its members a vice-chair to act for the chair during 
7.9 	the temporary absence or disability of the chair.
7.10 		Subd. 5.Bylaws. The authority shall adopt bylaws to establish rules of procedure, 
7.11 	the powers and duties of its officers, and other matters relating to the governance of the 
7.12 	authority and the exercise of its powers.
7.13 		Subd. 6.Executive director. The authority shall appoint an executive director to 
7.14 	serve as the chief executive officer of the authority.
7.15 		Subd. 7.Compensation. Compensation of members is governed by section 
7.16 	15.0575.

7.17 	Sec. 10. [473.374] TRANSFER OF POWER.
7.18 		Subdivision 1.Metropolitan Council. All powers, duties, and functions now vested 
7.19 	in the Metropolitan Council relating to the planning, operation, and contracting of transit 
7.20 	service in the metropolitan area are transferred to the Minnesota Transit Authority. This 
7.21 	includes all administrative functions necessary to the operation of transit services.
7.22 		Subd. 2.Department of Transportation. All powers, duties, and functions 
7.23 	now vested in the Department of Transportation's Office of Transit, including Federal 
7.24 	Transportation Administration grantee status, are transferred to the Minnesota Transit 
7.25 	Authority. All powers, duties, and functions related to passenger rail service now vested in 
7.26 	the Department of Transportation are transferred to the Minnesota Transit Authority.
7.27 		Subd. 3.Regional rail authorities. All powers, duties, and functions related to 
7.28 	planning, funding, constructing, and operating rail transit now vested in regional rail 
7.29 	authorities are transferred to the Minnesota Transit Authority.
7.30 		Subd. 4.Metropolitan Transit Development Board. All powers, duties, and 
7.31 	functions of the Metropolitan Transit Development Board are transferred to the Minnesota 
7.32 	Transit Authority.

7.33 	Sec. 11. Minnesota Statutes 2008, section 473.375, is amended to read:
7.34 	473.375 POWERS OF COUNCIL AUTHORITY.
8.1 		Subd. 9.Advisory committees. The council authority may establish one or more 
8.2 	advisory committees composed of and representing transit providers, transit users, and 
8.3 	local units of government to advise it in carrying out its purposes. The members of 
8.4 	advisory committees serve without compensation.
8.5 		Subd. 11.Ridesharing. The council authority shall administer a ridesharing 
8.6 	program in the metropolitan area, except for including the statewide vanpool leasing 
8.7 	program conducted by the commissioner of transportation and shall cooperate with the 
8.8 	commissioner of transportation in the conduct of ridesharing activities in areas where the 
8.9 	commissioner's programs and the council's authority's program overlap. The council
8.10 	authority shall establish a rideshare advisory committee to advise it in carrying out the 
8.11 	program. The council authority may contract for services in operating the program.
8.12 		Subd. 12.Assistance. The council authority shall offer, use, and apply its services 
8.13 	to assist and advise transit providers in the metropolitan transit area in the planning, 
8.14 	promotion, development, operation, and evaluation of programs and projects which are 
8.15 	undertaken or proposed to be undertaken by contract with the council authority, and shall 
8.16 	seek out and select recipients of this assistance and advice.
8.17 		Subd. 13.Financial assistance. The council authority may provide financial 
8.18 	assistance to public transit providers as provided in sections 473.371 to 473.449. The 
8.19 	council authority may not use the proceeds of bonds issued under section 473.39 to 
8.20 	provide capital assistance to private, for-profit operators of public transit, unless the 
8.21 	operators provide service under a contract with the council authority, the former regional 
8.22 	transit board, or recipients of financial assistance under sections 473.371 to 473.449. 
8.23 	No political subdivision within the metropolitan area may apply for federal transit 
8.24 	assistance unless its application has been submitted to and approved by the council
8.25 	authority.
8.26 		Subd. 14.Coordination. The council shall coordinate transit operations within the 
8.27 	metropolitan area and shall establish a transit information program to provide transit users 
8.28 	with accurate information on transit schedules and service.
8.29 		Subd. 15.Performance standards. The council may authority shall establish 
8.30 	performance standards for recipients of financial assistance.

8.31 	Sec. 12. [473.376] ADDITIONAL DUTIES OF MINNESOTA TRANSIT 
8.32 	AUTHORITY.
8.33 		Subdivision 1.Bus purchases. The authority shall develop specifications for, 
8.34 	and purchase, all transit buses, all bus parts and repair materials, and all fuel and bus 
8.35 	consumables for the state.
9.1 		Subd. 2.Rail construction and operation. The authority shall construct and 
9.2 	operate all state and locally funded rail service in the state, and will be the designated 
9.3 	agency to contract with Amtrak for additional passenger rail service.
9.4 		Subd. 3.Transit control. The authority's transit control center shall manage 
9.5 	all metropolitan area transit buses, regardless of provider, when they are in operation, 
9.6 	including all on-street supervision of transit operators. Within Metro Transit's operating 
9.7 	area, the authority shall determine and allocate the use of bus stops, bus lanes, and bus 
9.8 	terminals by all transit operators.
9.9 		Subd. 4.Transit information. The authority shall be responsible for all transit 
9.10 	information to the public, and all customer complaint handling.
9.11 		Subd. 5.Insurance. The authority shall provide the option of liability self-insurance 
9.12 	for all state public transit operators.
9.13 		Subd. 6.Subsidies. The authority shall develop subsidy per passenger standards 
9.14 	and ceilings which shall ensure financial equity in publicly funded transit service and 
9.15 	which shall be binding on all public transit operators in the state.
9.16 		Subd. 7.Coordination. The authority and all other state transit providers shall 
9.17 	explore opportunities for coordination and joint operations that reduce operating costs or 
9.18 	improve the quality of service to the public.
9.19 		Subd. 8.Efficiencies. The authority will review all existing paratransit, demand 
9.20 	responsive, and special transportation services with the goal of reducing duplication 
9.21 	with the fixed route system. Where it is possible without creating undue hardship 
9.22 	and inconvenience, paratransit, demand responsive, and special transportation service 
9.23 	passengers will be transferred to fixed route service at the first available transit center or 
9.24 	station for the completion of their trips, with the goal of reducing operating costs.
9.25 		Subd. 9.Public-private partnerships. The authority may establish partnerships 
9.26 	with private van services and other entities providing services to their employees, clients, 
9.27 	or students to leverage private investment to create a more comprehensive transit system.
9.28 		Subd. 10.Interstate coordination. The authority will coordinate with neighboring 
9.29 	states to address mutual public transportation issues, and will work to create interstate 
9.30 	agreements for the provision of needed public transportation.
9.31 		Subd. 11.Public transportation connecting Minnesota cities. The authority will 
9.32 	inventory existing public transportation connecting Minnesota cities and will create a plan 
9.33 	that identifies and prioritizes opportunities for improvement.

9.34 	Sec. 13. Minnesota Statutes 2008, section 473.382, is amended to read:
9.35 	473.382 LOCAL PLANNING AND DEVELOPMENT PROGRAM.
10.1 	The council authority shall establish a program to ensure participation by 
10.2 	representatives of local government units and the coordination of the planning and 
10.3 	development of transit by local government units. The council authority shall encourage 
10.4 	the establishment of local transit planning and development boards by local governments 
10.5 	for the purpose of:
10.6 	(a) identifying service needs and objectives;
10.7 	(b) preparing, or advising and assisting local units of government in preparing the 
10.8 	transit study and service plan required by section 473.384; 
10.9 	(c) preparing or advising the council authority in the review of applications for 
10.10 	assistance under section 473.384. 
10.11 	The council authority may provide local boards with whatever assistance it deems 
10.12 	necessary and appropriate.

10.13 	Sec. 14. Minnesota Statutes 2008, section 473.384, is amended to read:
10.14 	473.384 CONTRACTS.
10.15 		Subdivision 1.Contracts required. The council authority shall make contracts with 
10.16 	eligible recipients for financial assistance to transit service within the metropolitan area. 
10.17 	The council authority may not give financial assistance to another transit provider without 
10.18 	first having executed a contract. The provisions of this section do not apply to contracts 
10.19 	made under sections 473.386 and 473.388. 
10.20 		Subd. 2.Eligibility. To be eligible to receive financial assistance by contract under 
10.21 	this section a recipient must be:
10.22 	(a) a county, statutory or home rule charter city or town or combination thereof, or 
10.23 	public authority organized and existing pursuant to chapter 398A, providing financial 
10.24 	assistance to or providing or operating public transit; or
10.25 	(b) a private provider of public transit.
10.26 		Subd. 3.Applications. The council authority shall establish procedures and 
10.27 	standards for review and approval of applications for financial assistance under this 
10.28 	section. An applicant must provide the council authority with the financial and other 
10.29 	information the council authority requires to carry out its duties. The council authority
10.30 	may specify procedures, including public hearing requirements, to be followed by 
10.31 	applicants that are cities, towns, or counties or combinations thereof in conducting transit 
10.32 	studies and formulating service plans under subdivisions 4 and 5.
10.33 		Subd. 4.Transit study. The council authority shall require that prior to applying 
10.34 	for financial assistance by contract under clause (a) of subdivision 2, the applicant must 
10.35 	prepare and submit a transit study which includes the following elements:
11.1 	(a) a determination of existing and future transit needs within the area to be served, 
11.2 	and an assessment of the adequacy of existing service to meet the needs;
11.3 	(b) an assessment of the level and type of service required to meet unmet needs;
11.4 	(c) an assessment of existing and future resources available for the financing of 
11.5 	transit service; and
11.6 	(d) the type or types of any new government arrangements or agreements needed to 
11.7 	provide adequate service.
11.8 	The transit study for any applicant may be done by the council authority.
11.9 		Subd. 5.Service plan. The council authority shall, before making a contract with 
11.10 	an eligible recipient, require the submission of a service plan which includes the following 
11.11 	elements:
11.12 	(a) a description of the service proposed for financial assistance, including vehicles, 
11.13 	routes, and schedules;
11.14 	(b) an assessment of the extent to which the proposed service meets the needs as 
11.15 	determined by the transit study;
11.16 	(c) a description of the contract administration and review process if the operation of 
11.17 	the proposed service is to be done by a private contractor;
11.18 	(d) a description of the amount required to establish and operate the proposed service 
11.19 	and the proposed sources of the required amount including operating revenue, other local 
11.20 	sources, and assistance from the council authority and from federal sources;
11.21 	(e) the fare structure of the proposed service; and
11.22 	(f) projections of usage of the system.
11.23 	The council authority may specify procedures, including public hearing 
11.24 	requirements, to be followed by applicants that are cities, towns, or counties or 
11.25 	combinations thereof in conducting transit studies and formulating service plans.
11.26 		Subd. 6.Financial assistance for certain providers. The council shall provide 
11.27 	financial assistance to recipients who were receiving assistance by contract with 
11.28 	the commissioner of transportation under Minnesota Statutes 1982, section 174.24, 
11.29 	subdivision 3 on July 1, 1984, so that the percentage of total operating cost, as defined by 
11.30 	the council, paid by the recipient from all local sources of revenue, including operating 
11.31 	revenue, does not exceed the percentage for the recipient's classification as determined 
11.32 	by the commissioner of transportation under the commissioner's final contract with the 
11.33 	recipient. The council may include funds received under section 473.446, subdivision 
11.34 	1a, as a local source of revenue. The remainder of the total operating cost will be paid 
11.35 	by the council less all assistance received by the recipient for that purpose from any 
11.36 	federal source. 
12.1 	If a recipient informs the council in writing prior to the distribution of financial 
12.2 	assistance for any year that paying its designated percentage of total operating cost from 
12.3 	local sources will cause undue hardship, the council may adjust the percentage as it deems 
12.4 	equitable. If for any year the funds available to the council are insufficient to allow the 
12.5 	council to pay its share of total operating cost for those recipients, the council shall reduce 
12.6 	its share in each classification to the extent necessary.
12.7 		Subd. 7.Transit operations impact assessment. Prior to entering into a contract 
12.8 	for operating assistance with a recipient, the council shall evaluate the effect, if any, of the 
12.9 	contract on the ridership, routes, schedules, fares, and staffing levels of the existing and 
12.10 	proposed service provided by the council. The council may enter into the contract only if 
12.11 	it determines that the service to be assisted under the contract will not impose an undue 
12.12 	hardship on the ridership or financial condition of the council's transit operations. The 
12.13 	requirements of this subdivision do not apply to contracts for assistance to recipients who, 
12.14 	as part of a negotiated cost-sharing arrangement with the council, pay a substantial part of 
12.15 	the cost of services that directly benefit the recipient as an institution or organization.
12.16 		Subd. 8.Paratransit contracts. In executing and administering contracts for 
12.17 	paratransit projects, the council authority has the powers and duties given to the 
12.18 	commissioner of transportation in section 174.255, subdivisions 1 and 2, relating to 
12.19 	disability accessibility and insurance coverage. The provisions of section 174.255, 
12.20 	subdivision 3, apply to paratransit projects which receive assistance by contract with 
12.21 	the council authority. 

12.22 	Sec. 15. Minnesota Statutes 2008, section 473.385, is amended to read:
12.23 	473.385 TRANSIT SERVICE AREAS.
12.24 		Subdivision 1.Definitions. (a) "Fully developed service area" means the fully 
12.25 	developed area, as defined in the Metropolitan Council's development guide, plus the 
12.26 	cities of Mendota Heights, Maplewood, North St. Paul, and Little Canada.
12.27 	(b) "Regular route transit" has the meaning given it in section 174.22, subdivision 8, 
12.28 	except that, for purposes of this section, the term does not include services on fixed routes 
12.29 	and schedules that are primarily intended to provide circulator service within a community 
12.30 	or adjacent communities rather than feeder service to the system of metropolitan regular 
12.31 	route transit operated by the council authority. 
12.32 		Subd. 2.Service areas. The council authority may provide financial assistance 
12.33 	(whether directly or through another entity) to private, for-profit operators of public transit 
12.34 	only for the following services:
12.35 	(1) services that are not regular route services;
13.1 	(2) regular route services provided on June 2, 1989, by a private, for-profit operator 
13.2 	under contract with the former regional transit board or under a certificate of convenience 
13.3 	and necessity issued by the commissioner of transportation;
13.4 	(3) regular route services outside of the fully developed service area that are not 
13.5 	operated on June 2, 1989, by the former Metropolitan Transit Commission;
13.6 	(4) regular route services provided under section 473.388; 
13.7 	(5) regular route services to recipients who, as part of a negotiated cost-sharing 
13.8 	arrangement with the council authority, pay at least 50 percent of the cost of the service 
13.9 	that directly benefits the recipient as an institution or organization; or
13.10 	(6) (3) regular route services that will not be operated for a reasonable subsidy 
13.11 	by the council authority.

13.12 	Sec. 16. Minnesota Statutes 2008, section 473.386, is amended to read:
13.13 	473.386 SPECIAL TRANSPORTATION SERVICE.
13.14 		Subdivision 1. Service objectives. The council authority shall implement a special 
13.15 	transportation service, as defined in section 174.29, in the metropolitan area. The service 
13.16 	has the following objectives: 
13.17 	(a) to provide greater access to transportation for the elderly, people with disabilities, 
13.18 	and others with special transportation needs in the metropolitan area; 
13.19 	(b) to develop an integrated system of special transportation service providing 
13.20 	transportation tailored to meet special individual needs in the most cost-efficient manner; 
13.21 	and 
13.22 	(c) to use existing public, private, and private nonprofit providers of service when 
13.23 	feasible and cost-efficient, to supplement rather than replace existing service, and to 
13.24 	increase the productivity of all special transportation vehicles available in the area. 
13.25 		Subd. 2. Service contracts; management; transportation accessibility advisory 
13.26 	committee. (a) The council authority may contract for services necessary for the provision 
13.27 	of special transportation. Transportation service provided under a contract must specify 
13.28 	the service to be provided, the standards that must be met, and the rates for operating and 
13.29 	providing special transportation services. 
13.30 	(b) The council authority shall establish management policies for the service and 
13.31 	may contract with a service administrator for day-to-day administration and management 
13.32 	of the service. Any contract must delegate to the service administrator clear authority 
13.33 	to administer and manage the delivery of the service pursuant to council authority
13.34 	management policies and must establish performance and compliance standards for the 
14.1 	service administrator. The council authority may provide directly day to day administration 
14.2 	and management of the service and may own or lease vehicles used to provide the service. 
14.3 	(c) The council authority shall ensure that the service administrator establishes a 
14.4 	system for registering and expeditiously responding to complaints by users, informing 
14.5 	users of how to register complaints, and requiring providers to report on incidents that 
14.6 	impair the safety and well-being of users or the quality of the service. 
14.7 	(d) The council authority shall report on its special transportation services as part of 
14.8 	the program evaluation provided for in section 473.13, subdivision 1a. 
14.9 	(e) The council authority shall provide, on an annual basis, an opportunity for users 
14.10 	and other interested persons to provide testimony to the council concerning services 
14.11 	provided under this section. 
14.12 	(f) The council authority shall establish a Transportation Accessibility Advisory 
14.13 	Committee consisting of 15 members and a chair to advise the council authority on 
14.14 	management policies for the council's authority's special transportation service. The 
14.15 	Transportation Accessibility Advisory Committee must include elderly and disabled 
14.16 	persons, other users of special transportation service, and representatives of appropriate 
14.17 	agencies for elderly and disabled persons. At least half the Transportation Accessibility 
14.18 	Advisory Committee members must be persons who are both ADA-certified and users 
14.19 	of public transit in the metropolitan area. Two of the appointments to the Transportation 
14.20 	Accessibility Advisory Committee shall be made by the Council on Disability in 
14.21 	consultation with the chair of the Metropolitan Council Minnesota Transit Authority. 
14.22 		Subd. 2a. Eligibility application and verification; penalty for fraudulent 
14.23 	certification. (a) If the council authority requires a person to be certified as eligible for 
14.24 	special transportation services, an applicant for certification must submit an application 
14.25 	form and the applicant's eligibility must be verified by a type of professional specified by 
14.26 	the council authority. The council authority shall: 
14.27 	(1) require the applicant to sign the application form and certify that the application 
14.28 	information is accurate; and 
14.29 	(2) require the person verifying the applicant's eligibility to sign the eligibility 
14.30 	verification form and certify that the verifying information is accurate. 
14.31 	(b) The penalty provided for in section 174.295, subdivision 4, applies to the 
14.32 	certifications by the applicant and the person verifying the applicant's eligibility. The 
14.33 	council authority must include a notice of the penalty for fraudulent certification in the 
14.34 	application form and the eligibility verification form. 
14.35 		Subd. 3. Duties of council authority. In implementing the special transportation 
14.36 	service, the council authority shall: 
15.1 	(a) encourage participation in the service by public, private, and private nonprofit 
15.2 	providers of special transportation currently receiving capital or operating assistance 
15.3 	from a public agency; 
15.4 	(b) when feasible and cost-efficient, contract with public, private, and private 
15.5 	nonprofit providers that have demonstrated their ability to effectively provide service at 
15.6 	a reasonable cost; 
15.7 	(c) encourage individuals using special transportation to use the type of service 
15.8 	most appropriate to their particular needs; 
15.9 	(d) encourage shared rides to the greatest extent practicable; 
15.10 	(e) encourage public agencies that provide transportation to eligible individuals as a 
15.11 	component of human services and educational programs to coordinate with this service 
15.12 	and to allow reimbursement for transportation provided through the service at rates that 
15.13 	reflect the public cost of providing that transportation; 
15.14 	(f) establish criteria to be used in determining individual eligibility for special 
15.15 	transportation services; 
15.16 	(g) consult with the Transportation Accessibility Advisory Committee in a timely 
15.17 	manner before changes are made in the provision of special transportation services; 
15.18 	(h) provide for effective administration and enforcement of council authority
15.19 	policies and standards; and 
15.20 	(i) ensure that, taken as a whole including contracts with public, private, and private 
15.21 	nonprofit providers, the geographic coverage area of the special transportation service 
15.22 	is continuous within the boundaries of the transit taxing district, as defined as of March 
15.23 	1, 2006, in section 473.446, subdivision 2 shall extend beyond the area served by fixed 
15.24 	route public transit. Service connecting the metropolitan areas shall be provided by fixed 
15.25 	route public transit.
15.26 		Subd. 4.Coordination required. The council may not grant any financial 
15.27 	assistance to any recipient that proposes to use any part of the grant to provide special 
15.28 	transportation service in the metropolitan area unless the program is coordinated with the 
15.29 	council's special transportation service in the manner determined by the council. The 
15.30 	council is not required to provide funding for transportation services from a residence to 
15.31 	a service site and home again when the services are used by individuals in conjunction 
15.32 	with their participation in human service developmental achievement center programs 
15.33 	in which transportation to and from the program is a required and funded component 
15.34 	of those programs.
15.35 		Subd. 5.Equitable allocation and annual reallocation. The council shall 
15.36 	distribute all available funding under this section in a manner designed to achieve an 
16.1 	equitable allocation of special transportation services based on the proportion of the 
16.2 	number of elderly, disabled, or economically disadvantaged individuals with special 
16.3 	transportation needs who actually use the special transportation service.
16.4 		Subd. 6.Operating and service standards. A person operating or assisting the 
16.5 	operation of a vehicle may leave the vehicle to enter premises in order to help a passenger 
16.6 	who does not require emergency ambulance service. Operators and assistants shall provide 
16.7 	the help necessary for door-through-door service, including help in entering and leaving 
16.8 	the vehicle and help through the exterior entrance and over any exterior steps at either 
16.9 	departure or destination buildings, provided that both the steps and the wheelchair are in 
16.10 	good repair. If an operator or assistant refuses help because of the condition of the steps or 
16.11 	the wheelchair, the operator of the service shall send letters to the service administrator 
16.12 	designated by the council authority, who shall notify the person denied service describing 
16.13 	the corrective measures necessary to qualify for service.
16.14 		Subd. 8.Vehicle title transfer; conditions. The Metropolitan Council Minnesota 
16.15 	Transit Authority may transfer to a special transportation service provider or a provider of 
16.16 	taxi services the title to a vehicle formerly used to provide special transportation service 
16.17 	under this section. If the council authority transfers title to a provider of taxi services, it 
16.18 	may do so only to a provider of taxi services that is licensed by a city whose taxi licensing 
16.19 	ordinance requires (1) criminal background checks and annual driving record checks for 
16.20 	drivers, and (2) inspection of vehicles at least annually.

16.21 	Sec. 17. Minnesota Statutes 2008, section 473.3875, is amended to read:
16.22 	473.3875 TRANSIT FOR LIVABLE COMMUNITIES DEMONSTRATION 
16.23 	FUND.
16.24 		Subdivision 1.Fund established. The council shall establish a transit for livable 
16.25 	communities demonstration program fund. The council shall adopt guidelines for selecting 
16.26 	and evaluating demonstration projects for funding. The selection guidelines must include 
16.27 	provisions evaluating projects:
16.28 	(1) interrelating development or redevelopment and transit;
16.29 	(2) interrelating affordable housing and employment growth areas;
16.30 	(3) helping intensify land use that leads to more compact development or 
16.31 	redevelopment;
16.32 	(4) coordinating school transportation and public transit service;
16.33 	(5) implementing recommendations of the transit redesign plan; or
16.34 	(6) otherwise promoting the goals of the Metropolitan Livable Communities Act.
17.1 		Subd. 2.Grants. Grants from the demonstration program fund are only available for 
17.2 	projects located within one-quarter mile of an existing fixed-route public transit service.

17.3 	Sec. 18. Minnesota Statutes 2008, section 473.388, is amended to read:
17.4 	473.388 REPLACEMENT SERVICE PROGRAM.
17.5 		Subdivision 1.Program established. A replacement service program is established 
17.6 	to continue the metropolitan transit service demonstration program established in 
17.7 	Minnesota Statutes 1982, section 174.265, as provided in this section. 
17.8 		Subd. 2.Replacement service; eligibility. The council authority may provide 
17.9 	assistance under the program to a statutory or home rule charter city or town or 
17.10 	combination thereof, that:.
17.11 	(a) is located in the metropolitan transit taxing district;
17.12 	(b) is not served by the council bus service or is served only with council bus routes 
17.13 	which begin or end within the applying city or town or combination thereof; and
17.14 	(c) has fewer than four scheduled runs of council bus service during off-peak hours 
17.15 	defined in section 473.408, subdivision 1. 
17.16 	Eligible cities or towns or combinations thereof may apply on behalf of a transit 
17.17 	operator with whom they propose to contract for service.
17.18 	The council may not provide assistance under this section to a statutory or home rule 
17.19 	charter city or town unless the city or town,
17.20 	(i) was receiving assistance under Minnesota Statutes 1982, section 174.265 by 
17.21 	July 1, 1984, 
17.22 	(ii) had submitted an application for assistance under that section by July 1, 1984, or
17.23 	(iii) had submitted a letter of intent to apply for assistance under that section by July 
17.24 	1, 1984, and submits an application for assistance under this section by July 1, 1988. A 
17.25 	statutory or home rule charter city or town has an additional 12-month extension if it 
17.26 	notified the former regional transit board before July 1, 1988, that the city or town is in the 
17.27 	process of completing a transportation evaluation study that includes an assessment of 
17.28 	the local transit needs of the city or town.
17.29 		Subd. 3.Application for assistance. An application for assistance under this 
17.30 	section must:
17.31 	(a) describe the existing service provided to the applicant by the council, including 
17.32 	the estimated number of passengers carried and the routes, schedules, and fares;
17.33 	(b) describe the transit service proposed for funding under the demonstration 
17.34 	program, including the anticipated number of passengers and the routes, schedules, and 
17.35 	fares; and
18.1 	(c) indicate the total amount of available local transit funds, the portion of the 
18.2 	available local transit funds proposed to be used to subsidize replacement services, and the 
18.3 	amount of assistance requested for the replacement services.
18.4 		Subd. 4.Financial assistance. (a) The council authority must grant the requested 
18.5 	financial assistance if it determines that the proposed service is intended to replace the 
18.6 	service to the applying city or town or combination thereof by the council authority and 
18.7 	that the proposed service will meet the needs of the applicant at least as efficiently and 
18.8 	effectively as the existing service.
18.9 	(b) The amount of assistance which the council must provide to a system under this 
18.10 	section may not be less than the sum of the amounts determined for each municipality 
18.11 	comprising the system as follows:
18.12 	(1) the transit operating assistance grants received under this subdivision by the 
18.13 	municipality in calendar year 2001 or the tax revenues for transit services levied by the 
18.14 	municipality for taxes payable in 2001, including that portion of the levy derived from 
18.15 	the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of the 
18.16 	municipality's aid under section 273.1398, subdivision 2, attributable to the transit levy; 
18.17 	times 
18.18 	(2) the ratio of (i) an amount equal to 3.74 percent of the state revenues generated 
18.19 	from the taxes imposed under chapter 297B for the current fiscal year to (ii) the total 
18.20 	transit operating assistance grants received under this subdivision in calendar year 2001 or 
18.21 	the tax revenues for transit services levied by all replacement service municipalities under 
18.22 	this section for taxes payable in 2001, including that portion of the levy derived from 
18.23 	the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of 
18.24 	homestead and agricultural credit aid under section 273.1398, subdivision 2, attributable 
18.25 	to nondebt transit levies, times 
18.26 	(3) the ratio of (i) the municipality's total taxable market value for taxes payable 
18.27 	in 2006 divided by the municipality's total taxable market value for taxes payable in 
18.28 	2001, to (ii) the total taxable market value of all property located in replacement service 
18.29 	municipalities for taxes payable in 2006 divided by the total taxable market value of all 
18.30 	property located in replacement service municipalities for taxes payable in 2001.
18.31 	(c) The council shall pay the amount to be provided to the recipient from the funds 
18.32 	the council receives in the metropolitan area transit account under section 16A.88.
18.33 		Subd. 5.Other assistance. A city or town receiving assistance or levying a transit 
18.34 	tax under this section may also receive assistance from the council under section 473.384. 
18.35 	In applying for assistance under that section an applicant must describe the portion of its 
18.36 	available local transit funds or local transit taxes which are not obligated to subsidize its 
19.1 	replacement transit service and which the applicant proposes to use to subsidize additional 
19.2 	service. An applicant which has exhausted its available local transit funds or local transit 
19.3 	taxes may use any other local subsidy funds to complete the required local share. 
19.4 		Subd. 7.Local levy option. (a) A statutory or home rule charter city or town that 
19.5 	is eligible for assistance under this section may levy a tax for payment of obligations 
19.6 	issued by the municipality for capital expenditures for transit and other related activities, 
19.7 	provided that property taxes were pledged to satisfy the obligations, and provided that 
19.8 	legislative appropriations are insufficient to satisfy the obligations.
19.9 	(b) This subdivision is consistent with the transit redesign plan. Eligible 
19.10 	municipalities opting to operate under this subdivision shall continue to meet the regional 
19.11 	performance standards established by the council authority.
19.12 	(c) Within the designated Americans with Disabilities Act area, metro mobility 
19.13 	remains the obligation of the state.
19.14 		Subd. 8.Service incentive. A replacement transit service shall receive an additional 
19.15 	two percent of available local transit funds, as defined in subdivision 4, if the service 
19.16 	increased its ridership for trips that originate outside of the replacement transit service's 
19.17 	member communities and serve the employment centers in those communities by at 
19.18 	least five percent from the previous year, provided the service operates within regional 
19.19 	performance standards. A replacement transit service that is receiving the maximum 
19.20 	amount of available local transit funds may receive up to two percent over the maximum 
19.21 	amount set in subdivision 4 if it increases its ridership as provided in this subdivision. The 
19.22 	additional funding received under this subdivision may be reserved by the replacement 
19.23 	transit service for future use.

19.24 	Sec. 19. Minnesota Statutes 2008, section 473.39, subdivision 1, is amended to read:
19.25 		Subdivision 1.General authority. The council authority may issue general 
19.26 	obligation bonds subject to the volume limitations in this section to provide funds to 
19.27 	implement the council's authority's transit capital improvement program and may issue 
19.28 	general obligation bonds not subject to the limitations for the refunding of outstanding 
19.29 	bonds or certificates of indebtedness of the council authority, the former regional transit 
19.30 	board or the former metropolitan transit commission, and judgments against the former 
19.31 	regional transit board or the former metropolitan transit commission or the council
19.32 	authority. The council authority may not issue obligations pursuant to this subdivision, 
19.33 	other than refunding bonds, in excess of the amount specifically authorized by law. Except 
19.34 	as otherwise provided in sections 473.371 to 473.449, the council authority shall provide 
19.35 	for the issuance, sale, and security of the bonds in the manner provided in chapter 475, and 
20.1 	has the same powers and duties as a municipality issuing bonds under that law, except 
20.2 	that no election is required and the net debt limitations in chapter 475 do not apply to 
20.3 	the bonds. The obligations are not a debt of the state or any municipality or political 
20.4 	subdivision within the meaning of any debt limitation or requirement pertaining to those 
20.5 	entities. Neither the state, nor any municipality or political subdivision except the council
20.6 	authority, nor any member or officer or employee of the council authority, is liable on the 
20.7 	obligations. The obligations may be secured by taxes levied without limitation of rate or 
20.8 	amount upon all taxable property in the transit taxing district and transit area as provided in 
20.9 	section 473.446, subdivision 1, clause (c). As part of its levy made under section 473.446, 
20.10 	subdivision 1, clause (c), the council authority shall levy the amounts necessary to provide 
20.11 	full and timely payment of the obligations and transfer the proceeds to the appropriate 
20.12 	council authority account for payment of the obligations. The taxes must be levied, 
20.13 	certified, and collected in accordance with the terms and conditions of the indebtedness. 

20.14 	Sec. 20. Minnesota Statutes 2008, section 473.39, subdivision 1m, is amended to read:
20.15 		Subd. 1m. Obligations. After March 1, 2008, in addition to other authority in 
20.16 	this section, the council authority may issue certificates of indebtedness, bonds, or 
20.17 	other obligations under this section in an amount not exceeding $33,600,000 for capital 
20.18 	expenditures as prescribed in the council's authority's regional transit master plan and 
20.19 	transit capital improvement program and for related costs, including the costs of issuance 
20.20 	and sale of the obligations. 

20.21 	Sec. 21. Minnesota Statutes 2008, section 473.39, subdivision 2, is amended to read:
20.22 		Subd. 2.Legal investments. Certificates of indebtedness, bonds, or other 
20.23 	obligations issued by the council authority to which tax levies have been pledged pursuant 
20.24 	to section 473.446, are proper for investment of any funds by a bank, savings bank, savings 
20.25 	association, credit union, trust company, insurance company, or public or municipal 
20.26 	corporation, and may be pledged by any bank, savings bank, savings association, credit 
20.27 	union, or trust company as security for the deposit of public money. 

20.28 	Sec. 22. Minnesota Statutes 2008, section 473.39, subdivision 4, is amended to read:
20.29 		Subd. 4.Transit capital improvement program. The council authority may not 
20.30 	issue obligations pursuant to this section until the council authority adopts a three-year
20.31 	transit capital improvement program. The program must include a capital investment 
20.32 	component that sets forth a capital investment strategy and estimates the fiscal and other 
20.33 	effects of the strategy. The component must specify, to the extent practicable, the capital 
21.1 	improvements to be undertaken. For each improvement specified, the program must 
21.2 	describe: (1) need, function, objective, and relative priority; (2) alternatives, including 
21.3 	alternatives not involving capital expenditures; (3) ownership and operating entity; (4) 
21.4 	location and schedule of development; (5) environmental, social, and economic effects; 
21.5 	(6) cost; (7) manner of finance and revenue sources, including federal and state funds, 
21.6 	private funds, taxes, and user charges; and (8) fiscal effects, including an estimate of 
21.7 	annual operating costs and sources of revenue to pay the costs.

21.8 	Sec. 23. Minnesota Statutes 2008, section 473.39, subdivision 5, as added by Laws 
21.9 	2008, chapter 154, article 10, section 20, is amended to read:
21.10 		Subd. 5. Anticipation of grants. In addition to other authority granted in this 
21.11 	section, the council authority may exercise the authority granted to an issuing political 
21.12 	subdivision by section 475.522.

21.13 	Sec. 24. Minnesota Statutes 2008, section 473.392, is amended to read:
21.14 	473.392 SERVICE BIDDING.
21.15 	The council authority may competitively bid transit service only in accordance with 
21.16 	standards, procedures, and guidelines adopted by resolution of the council authority. 
21.17 	The council shall establish a project management team to assist and advise the council 
21.18 	in developing and implementing standards, procedures, and guidelines. The project 
21.19 	management team must include representatives of the Amalgamated Transit Union Local 
21.20 	1005, private operators, local governments, and other persons interested in the subject. At 
21.21 	least 60 days before adopting any standards, procedures, or guidelines for competitive 
21.22 	bidding of transit service, the council shall hold a public hearing on the subject. The 
21.23 	council shall publish notice of the hearing in newspapers of general circulation in the 
21.24 	metropolitan area not less than 15 days before the hearing. At the hearing all interested 
21.25 	persons must be afforded an opportunity to present their views orally and in writing. 
21.26 	Following the hearing, and after considering the testimony, the council shall revise and 
21.27 	adopt the standards, procedures, and guidelines.

21.28 	Sec. 25. [473.3992] LIGHT RAIL AND COMMUTER RAIL; GENERAL 
21.29 	REQUIREMENTS.
21.30 	All light rail transit and commuter rail planning shall conform to the requirements 
21.31 	of the Federal Transit Administration, including the Cost Effectiveness Index where 
21.32 	applicable, through all phases of the process.

22.1 	Sec. 26. Minnesota Statutes 2008, section 473.3997, is amended to read:
22.2 	473.3997 FEDERAL FUNDING; LIGHT RAIL TRANSIT. 
22.3 	(a) Upon completion of the alternatives analysis and draft environmental impact 
22.4 	statement, and selection of the locally preferred alternative, for each light rail transit 
22.5 	facility, the responsible authority may prepare an application for federal assistance for the 
22.6 	light rail transit facility. If the commissioner is the responsible authority, the application 
22.7 	must be reviewed and approved by the Metropolitan Council Minnesota Transit Authority
22.8 	before it is submitted by the commissioner. In reviewing the application the council
22.9 	authority must consider the operating cost estimate developed under section 473.3994, 
22.10 	subdivision 9. 
22.11 	(b) Except for the designated responsible authority for a particular light rail transit 
22.12 	facility, no political subdivision in the metropolitan area may on its own apply for federal 
22.13 	assistance for light rail transit planning or construction. 

22.14 	Sec. 27. Minnesota Statutes 2008, section 473.405, is amended to read:
22.15 	473.405 POWERS.
22.16 		Subdivision 1.General. The Metropolitan Council Minnesota Transit Authority
22.17 	has the powers and duties prescribed by this section and sections 473.407 to 473.449 and 
22.18 	all powers necessary or convenient to discharge its duties. 
22.19 		Subd. 3.Condemnation. The council authority may for transit purposes acquire 
22.20 	property, franchises, easements, or property rights or interests of any kind by condemnation 
22.21 	proceedings pursuant to chapter 117. Except as provided in subdivision 9, the council
22.22 	authority may take possession of any property for which condemnation proceedings have 
22.23 	been commenced at any time after the filing of the petition describing the property in the 
22.24 	proceedings. The council authority may contract with an operator or other persons for the 
22.25 	use by the operator or person of any property under the council's authority's control.
22.26 		Subd. 4.Transit systems. The council authority may engineer, construct, equip, and 
22.27 	operate transit and paratransit systems, projects, or any parts thereof, including road lanes 
22.28 	or rights-of-way, terminal facilities, maintenance and garage facilities, ramps, parking 
22.29 	areas, and any other including any facilities useful for or related to any public transit or 
22.30 	paratransit system or project. The council authority may sell or lease naming rights with 
22.31 	regard to light rail transit stations and other transit facilities and apply revenues from sales 
22.32 	or leases to light rail transit operating costs.
22.33 		Subd. 5.Acquisition of transit systems. The council authority may acquire by 
22.34 	purchase, lease, gift, or condemnation proceedings any existing public transit system 
22.35 	or any part thereof, including all or any part of the plant, equipment, shares of stock, 
23.1 	property, real, personal, or mixed, rights in property, reserve funds, special funds, 
23.2 	franchises, licenses, patents, permits and papers, documents and records belonging to any 
23.3 	operator of a public transit system within the metropolitan area, and may in connection 
23.4 	therewith assume any or all liabilities of any operator of a public transit system. The 
23.5 	council authority may take control of and operate a system immediately following the 
23.6 	filing and approval of the initial petition for condemnation, if the council authority, in its 
23.7 	discretion, determines this to be necessary, and may take possession of all right, title and 
23.8 	other powers of ownership in all properties and facilities described in the petition. Control 
23.9 	must be taken by resolution which is effective upon service of a copy on the condemnee 
23.10 	and the filing of the resolution in the condemnation action. In the determination of the 
23.11 	fair value of the existing public transit system, there must not be included any value 
23.12 	attributable to expenditures for improvements made by the former Metropolitan Transit 
23.13 	Commission or council, the Metropolitan Council, or the authority.
23.14 	The council authority may continue or terminate within three months of acquisition 
23.15 	any advertising contract in existence by and between any advertiser and a transit system 
23.16 	that the council authority has acquired. If the council authority determines to terminate 
23.17 	the advertising contract, it shall acquire all of the advertiser's rights under the contract by 
23.18 	purchase or eminent domain proceedings as provided by law.
23.19 		Subd. 9.Condemnation of public or public service corporation property. The 
23.20 	fact that property is owned by or is in charge of a public agency or a public service 
23.21 	corporation organized for a purpose specified in section 301B.01, or is already devoted to 
23.22 	a public use or to use by the corporation or was acquired therefor by condemnation may 
23.23 	not prevent its acquisition by the council authority by condemnation, but if the property 
23.24 	is in actual public use or in actual use by the corporation for any purpose of interest or 
23.25 	benefit to the public, the taking by the council authority by condemnation may not be 
23.26 	authorized unless the court finds and determines that there is greater public necessity for 
23.27 	the proposed use by the council authority than for the existing use. 
23.28 		Subd. 10.Voluntary transfer of public property. Any state department or other 
23.29 	agency of the state government or any county, municipality, or other public agency 
23.30 	may sell, lease, grant, transfer, or convey to the council authority, with or without 
23.31 	consideration, any facilities or any part or parts thereof or any real or personal property or 
23.32 	interest therein which may be useful to the council authority for any authorized purpose. 
23.33 	In any case where the construction of a facility has not been completed, the public agency 
23.34 	concerned may also transfer, sell, assign, and set over to the council authority, with or 
23.35 	without consideration, any existing contract for the construction of the facilities.
24.1 		Subd. 12.Management contracts. Notwithstanding any of the other provisions 
24.2 	of this section and sections 473.407 to 473.449, the council authority may, in lieu of 
24.3 	directly operating any public transit system or any part thereof, enter into contracts for 
24.4 	management services. The contracts may provide for compensation, incentive fees, the 
24.5 	employment of personnel, the services provided, and other terms and conditions that the 
24.6 	council authority deems proper. The contracts must provide that the compensation of 
24.7 	personnel who work full time or substantially full time providing management or other 
24.8 	services for the council authority is public data under chapter 13. 
24.9 	The council authority may not permit a contract manager to supervise or manage 
24.10 	internal audit activities. Internal audit activity must be supervised and managed directly 
24.11 	by the council authority. The council authority shall advertise for bids and select contracts 
24.12 	for management services through competitive bidding. The term of the contract may not 
24.13 	be longer than two years. The contract must include clear operating objectives, stating the 
24.14 	service policies and goals of the council authority in terms of the movement of various 
24.15 	passenger groups, and performance criteria, by means of which success in achieving the 
24.16 	operating objectives can be measured. The council authority shall consider and determine 
24.17 	the feasibility and desirability of having all its transit management services provided 
24.18 	internally by employees of the council authority.
24.19 	The employees of any public transit system operated pursuant to the provisions of 
24.20 	this subdivision for the purpose of resolving any dispute arising under any existing or new 
24.21 	collective bargaining agreement relating to the terms or conditions of their employment, 
24.22 	may either engage in a concerted refusal to work or to invoke the processes of final and 
24.23 	binding arbitration as provided by chapter 572, subject to any applicable provisions of 
24.24 	the agreement not inconsistent with law.
24.25 		Subd. 15.Relocation of displaced persons. The council authority may plan for and 
24.26 	assist in the relocation of individuals, families, business concerns, nonprofit organizations, 
24.27 	and others displaced by operations of the council authority, and may make relocation 
24.28 	payments in accordance with federal regulations.

24.29 	Sec. 28. Minnesota Statutes 2008, section 473.4051, subdivision 1, is amended to read:
24.30 		Subdivision 1.Operator. The council authority shall operate all light rail transit 
24.31 	facilities and services located in the metropolitan area upon completion of construction of 
24.32 	the facilities and the commencement of revenue service using the facilities. The council
24.33 	authority may not allow the commencement of revenue service until after an appropriate 
24.34 	period of acceptance testing to ensure safe and satisfactory performance. In assuming the 
24.35 	operation of the system, the council authority must comply with section 473.415. The 
25.1 	council authority shall coordinate operation of the light rail transit system with bus service 
25.2 	to avoid duplication of service on a route served by light rail transit and to ensure the 
25.3 	widest possible access to light rail transit lines in both suburban and urban areas by means 
25.4 	of a feeder bus system. 

25.5 	Sec. 29. Minnesota Statutes 2008, section 473.407, subdivision 1, is amended to read:
25.6 		Subdivision 1. Authorization. The council authority may appoint peace 
25.7 	officers, as defined in section 626.84, subdivision 1, paragraph (c), and establish a law 
25.8 	enforcement agency, as defined in section 626.84, subdivision 1, paragraph (f), known 
25.9 	as the Metropolitan Transit Police, to police its transit property and routes, to carry out 
25.10 	investigations, and to make arrests under sections 629.30 and 629.34. The jurisdiction 
25.11 	of the law enforcement agency is limited to offenses relating to council authority transit 
25.12 	property, equipment, employees, and passengers. The jurisdiction of the Metropolitan 
25.13 	Transit Police shall include traffic lanes designed for bus or transit use, freeway or 
25.14 	expressway shoulders in the seven-county metropolitan area used by authorized transit 
25.15 	buses and metro mobility buses under section 169.306, and high-occupancy vehicle 
25.16 	lanes used by transit buses. Upon request from, or under an agreement with, any law 
25.17 	enforcement agency and subject to the availability of its personnel and other resources, 
25.18 	the Metropolitan Transit Police may exercise general law enforcement agency authority 
25.19 	to assist any law enforcement agency in implementing or carrying out law enforcement 
25.20 	activities, programs, or initiatives. If the commissioner of transportation contracts with 
25.21 	the Metropolitan Council Minnesota Transit Authority for operation of commuter rail 
25.22 	facilities under section 174.90, the jurisdiction of the Metropolitan Transit Police extends 
25.23 	to offenses relating to the operation, property, facilities, equipment, employees, and 
25.24 	passengers of the commuter rail facilities located in and outside of the metropolitan area. 

25.25 	Sec. 30. Minnesota Statutes 2008, section 473.407, subdivision 3, is amended to read:
25.26 		Subd. 3.Policy for notice of investigations. The transit police must develop a 
25.27 	policy for notifying the law enforcement agency with primary jurisdiction when it has 
25.28 	initiated surveillance or investigation of any person within the jurisdiction of that agency. 
25.29 	The council authority shall train all of its peace officers regarding the application of this 
25.30 	policy.

25.31 	Sec. 31. Minnesota Statutes 2008, section 473.407, subdivision 4, is amended to read:
25.32 		Subd. 4.Chief law enforcement officer. The regional administrator chair of 
25.33 	the Minnesota Transit Authority shall appoint a peace officer employed full time to 
26.1 	be the chief law enforcement officer and to be responsible for the management of the 
26.2 	metropolitan transit police. The chief law enforcement officer shall possess the necessary 
26.3 	police and management experience to manage a law enforcement agency. The chief law 
26.4 	enforcement officer may appoint, discipline, and discharge all transit police personnel. 
26.5 	All police managerial and supervisory personnel must be full-time employees of the 
26.6 	Metropolitan Transit Police. Supervisory personnel must be on duty and available any 
26.7 	time transit police are on duty. The chief law enforcement officer may not hire part-time 
26.8 	peace officers as defined in section 626.84, subdivision 1, paragraph (d), except that the 
26.9 	chief may appoint peace officers to work on a part-time basis not to exceed 30 full-time 
26.10 	equivalents. A part-time officer must maintain an active peace officer license with the 
26.11 	officer's full-time law enforcement employer. 

26.12 	Sec. 32. Minnesota Statutes 2008, section 473.407, subdivision 5, is amended to read:
26.13 		Subd. 5.Emergencies. (a) The council authority shall ensure that all emergency 
26.14 	vehicles used by transit police are equipped with radios capable of receiving and 
26.15 	transmitting on the same frequencies utilized by the law enforcement agencies that have 
26.16 	primary jurisdiction.
26.17 	(b) When the transit police receive an emergency call they shall notify the public 
26.18 	safety agency with primary jurisdiction and coordinate the appropriate response.
26.19 	(c) Transit police officers shall notify the primary jurisdictions of their response 
26.20 	to any emergency.

26.21 	Sec. 33. Minnesota Statutes 2008, section 473.408, is amended to read:
26.22 	473.408 FARE POLICY.
26.23 		Subd. 2.Fare policy. (a) Fares and fare collection systems shall be established and 
26.24 	administered to accomplish the following purposes:
26.25 	(1) to encourage and increase transit and paratransit ridership with an emphasis 
26.26 	on regular ridership;
26.27 	(2) to restrain increases in the average operating subsidy per passenger; and
26.28 	(3) to ensure that no riders on any route pay more in fares than the average cost of 
26.29 	providing the service on that route;
26.30 	(4) to ensure that operating revenues are proportioned to the cost of providing the 
26.31 	service so as to reduce any disparity in the subsidy per passenger on routes in the transit 
26.32 	system; and
26.33 	(5) to implement the social fares as set forth in subdivision 2b.
27.1 	(b) The plan must contain a statement of the policies that will govern the imposition 
27.2 	of user charges for various types of transit service and the policies that will govern 
27.3 	decisions by the council authority to change fare policy.
27.4 		Subd. 2a.Regular route fares. The council authority shall establish and enforce 
27.5 	uniform fare policies for regular route transit in the metropolitan area. The policies 
27.6 	must be consistent with the requirements of this section and the council's authority's
27.7 	transportation policy plan. The council authority and other operators shall charge a base 
27.8 	fare and any surcharges for peak hours and distance of service in accordance with the 
27.9 	council's authority's fares policies. The council authority shall approve all fare schedules.
27.10 		Subd. 2b.Social fares. For the purposes of raising revenue for improving public 
27.11 	safety on transit vehicles and at transit hubs or stops, the council shall review and may 
27.12 	adjust its social fares as they relate to passengers under the age of 18 during high crime 
27.13 	times provided that the increased revenues are dedicated to improving the safety of all 
27.14 	passengers.
27.15 		Subd. 4.Circulation fares. The council authority and other operators may charge a 
27.16 	reduced fare for service on any route providing circulation service in a downtown area or 
27.17 	community activity center. The council authority and other operators shall not contribute 
27.18 	more than 50 percent of the operating deficit of any such route that is confined to a 
27.19 	downtown area or community activity center. The boundaries of service districts eligible 
27.20 	for reduced fares under this subdivision must be approved by the council authority.
27.21 		Subd. 6.Monthly passes. The council authority may offer monthly passes for 
27.22 	regular route bus service for sale to the general public.
27.23 		Subd. 7.Employee discount passes. The council authority may offer passes for 
27.24 	regular route bus service for sale to employers at a special discount.
27.25 		Subd. 8. Charitable organization discount passes. The council authority may offer 
27.26 	passes, including tokens, for regular route bus service for sale to charitable organizations, 
27.27 	described in section 501(c)(3) of the Internal Revenue Code, at a special discount. 
27.28 		Subd. 9. Youth discount passes. (a) The council authority may offer passes, 
27.29 	including tokens, for regular route bus service to charitable organizations, described in 
27.30 	section 501(c)(3) of the Internal Revenue Code, free of charge. Any passes provided 
27.31 	under this subdivision must be: 
27.32 	(1) distributed to and used solely by a person who is under 16 years of age; and 
27.33 	(2) restricted to use on a bus that is not operating at full capacity at the time of 
27.34 	use of the bus pass. 
27.35 	(b) The council authority may establish additional requirements and terms of use of 
27.36 	the passes, including but not limited to charging a fee to the charitable organization for 
28.1 	any printing or production costs, restricting times of bus pass use to certain or nonpeak 
28.2 	hours of operation, and establishing oversight and auditing of the charitable organization 
28.3 	with regard to bus pass distribution and use. 

28.4 	Sec. 34. Minnesota Statutes 2008, section 473.409, is amended to read:
28.5 	473.409 AGREEMENTS WITH COUNCIL AUTHORITY; 
28.6 	ENCOURAGEMENT OF TRANSIT USE.
28.7 	A state department or agency, including the legislative branch, any local 
28.8 	governmental unit, or a metropolitan agency may enter into an agreement with the council
28.9 	authority and other operators for the purpose of encouraging the use of transit by its 
28.10 	employees residing in the metropolitan area. The agreement may provide for, among other 
28.11 	things: (a) the advance purchase of tokens, tickets or other devices from the council
28.12 	authority or other operator for use in lieu of fares on vehicles operated by the council
28.13 	authority or other operator; and (b) special transit service for employees to and from their 
28.14 	place of employment, at fares to be agreed upon by the contracting parties. The tokens, 
28.15 	tickets, or other devices or services may be made available to employees at reduced rates. 
28.16 	Any such agreement and arrangement by a state department or agency shall be submitted 
28.17 	to the commissioner of administration for approval before execution. Any operating 
28.18 	deficits or subsidy resulting from such agreements shall be assumed by the contracting 
28.19 	department, agency, governmental unit, or other commission, unless otherwise provided in 
28.20 	an agreement approved by the council authority.

28.21 	Sec. 35. Minnesota Statutes 2008, section 473.411, is amended to read:
28.22 	473.411 TRANSIT AND HIGHWAY SYSTEMS.
28.23 		Subd. 3.Services of Department of Transportation. The council authority may 
28.24 	make use of engineering and other technical and professional services, including regular 
28.25 	staff and qualified consultants, which the commissioner of transportation can furnish, upon 
28.26 	fair and reasonable reimbursement for the cost thereof; provided, that the council authority
28.27 	has final authority over the employment of any services from other sources which it may 
28.28 	deem necessary for such purposes. The commissioner of transportation may furnish all 
28.29 	engineering, legal, and other services, if so requested by the council authority and upon 
28.30 	fair and reasonable reimbursement for the cost thereof by the council authority, for the 
28.31 	purposes stated in this subdivision, including the acquisition by purchase, condemnation, 
28.32 	or otherwise in the name of the council authority of all lands, waters, easements, or other 
28.33 	rights or interests in lands or waters required by the council authority. No purchase of 
29.1 	service agreements may be made under this subdivision which are not included in the 
29.2 	budget of the council authority.
29.3 		Subd. 4.State highways; joint use for transit and highway purposes. Wherever 
29.4 	the joint construction or use of a state highway is feasible in fulfilling the purposes of 
29.5 	sections 473.405 to 473.449, the council authority shall enter into an agreement with the 
29.6 	commissioner of transportation therefor, evidenced by a memorandum setting forth the 
29.7 	terms of the agreement. Either the council authority or the commissioner of transportation 
29.8 	may acquire any additional lands, waters, easements or other rights or interests required 
29.9 	for joint use in accordance with the agreement, or joint acquisition may be made by 
29.10 	condemnation as provided by section 117.016 and the provisions of sections 473.405
29.11 	to 473.449. Under the agreement each party shall pay to the other party reasonable 
29.12 	compensation for the costs of any services performed at the request of the other party 
29.13 	which may include any costs of engineering, design, acquisition of property, construction 
29.14 	of the facilities, and for the use thereof so far as attributable to and necessary for the 
29.15 	purposes. The council authority may not agree to acquisitions or expenditures under this 
29.16 	subdivision which are not included in its budget. 
29.17 		Subd. 5.Use of public roadways and appurtenances. The council authority may 
29.18 	use for the purposes of sections 473.405 to 473.449 upon the conditions stated in this 
29.19 	subdivision any state highway or other public roadway, parkway, or lane, or any bridge 
29.20 	or tunnel or other appurtenance of a roadway, without payment of any compensation, 
29.21 	provided the use does not interfere unreasonably with the public use or maintenance of 
29.22 	the roadway or appurtenance or entail any substantial additional costs for maintenance. 
29.23 	The provisions of this subdivision do not apply to the property of any common carrier 
29.24 	railroad or common carrier railroads. The consent of the public agency in charge of such 
29.25 	state highway or other public highway or roadway or appurtenance is not required; except 
29.26 	that if the council authority seeks to use a designated parkway for regular route service 
29.27 	in the city of Minneapolis, it must obtain permission from and is subject to reasonable 
29.28 	limitations imposed by a joint board consisting of two representatives from the council
29.29 	authority, two members of the board of park commissioners, and a fifth member jointly 
29.30 	selected by the representatives of the council authority and the park board. 
29.31 	The board of park commissioners and the council authority may designate persons to 
29.32 	sit on the joint board. In considering a request by the council authority to use designated 
29.33 	parkways for additional routes or trips, the joint board consisting of the council authority
29.34 	or their designees, the board of park commissioners or their designees, and the fifth 
29.35 	member, shall base its decision to grant or deny the request based on the criteria to be 
29.36 	established by the joint board. The decision to grant or deny the request must be made 
30.1 	within 45 days of the date of the request. The park board must be notified immediately 
30.2 	by the council authority of any temporary route detours. If the park board objects to the 
30.3 	temporary route detours within five days of being notified, the joint board must convene 
30.4 	and decide whether to grant the request, otherwise the request is deemed granted. If the 
30.5 	agency objects to the proposed use or claims reimbursement from the council authority for 
30.6 	additional cost of maintenance, it may commence an action against the council authority
30.7 	in the district court of the county wherein the highway, roadway, or appurtenance, or 
30.8 	major portion thereof, is located. The proceedings in the action must conform to the 
30.9 	Rules of Civil Procedure applicable to the district courts. The court shall sit without jury. 
30.10 	If the court determines that the use in question interferes unreasonably with the public 
30.11 	use or maintenance of the roadway or appurtenance, it shall enjoin the use by the council
30.12 	authority. If the court determines that the use in question does not interfere unreasonably 
30.13 	with the public use or maintenance of the roadway or appurtenance, but that it entails 
30.14 	substantial additional maintenance costs, the court shall award judgment to the agency for 
30.15 	the amount of the additional costs. Otherwise the court shall award judgment to the council
30.16 	authority. An aggrieved party may appeal from the judgment of the district court in the 
30.17 	same manner as is provided for such appeals in other civil actions. The council authority
30.18 	may also use land within the right-of-way of any state highway or other public roadway 
30.19 	for the erection of traffic control devices, other signs, and passenger shelters upon the 
30.20 	conditions stated in this subdivision and subject only to the approval of the commissioner 
30.21 	of transportation where required by statute, and subject to the express provisions of other 
30.22 	applicable statutes and to federal requirements where necessary to qualify for federal aid.

30.23 	Sec. 36. Minnesota Statutes 2008, section 473.415, subdivision 1, is amended to read:
30.24 		Subdivision 1.Includes no worse off clause. If the council authority acquires 
30.25 	an existing transit system, the council authority shall assume and observe all existing 
30.26 	labor contracts and pension obligations. All employees of such system except executive 
30.27 	and administrative officers who are necessary for the operation thereof by the council
30.28 	authority shall be transferred to and appointed as employees of the council authority for 
30.29 	the purposes of the transit system, subject to all the rights and benefits of sections 473.405
30.30 	to 473.449. Such employees shall be given seniority credit and sick leave, vacation, 
30.31 	insurance, and pension credits in accordance with the records or labor agreements from the 
30.32 	acquired transit system. The council authority shall assume the obligations of any transit 
30.33 	system acquired by it with regard to wages, salaries, hours, working conditions, sick 
30.34 	leave, health and welfare and pension or retirement provisions for employees. The council
30.35 	authority and the employees, through their representatives for collective bargaining 
31.1 	purposes, shall take whatever action may be necessary to have pension trust funds 
31.2 	presently under the joint control of the acquired system and the participating employees 
31.3 	through their representatives transferred to the trust fund to be established, maintained and 
31.4 	administered jointly by the council authority and the participating employees through their 
31.5 	representatives. No employee of any acquired system who is transferred to a position with 
31.6 	the council authority shall by reason of such transfer be placed in any worse position with 
31.7 	respect to workers' compensation, pension, seniority, wages, sick leave, vacation, health 
31.8 	and welfare insurance or any other benefits than the employee enjoyed as an employee 
31.9 	of such acquired system. 

31.10 	Sec. 37. Minnesota Statutes 2008, section 473.416, is amended to read:
31.11 	473.416 RIGHTS OF SYSTEM WORKERS IN TAKEOVER OF TRANSIT 
31.12 	SYSTEM.
31.13 	Whenever the council authority directly operates any public transit system, or any 
31.14 	part thereof, or enters into any management contract or other arrangement for the operation 
31.15 	of a system, the council authority shall take the action necessary to extend to employees 
31.16 	of the affected public transit systems, in accordance with seniority, the first opportunity 
31.17 	for reasonably comparable employment in any available nonsupervisory jobs in respect 
31.18 	to such operations for which they can qualify after a reasonable training period. The 
31.19 	employment must not result in any worsening of the employee's position in the employee's 
31.20 	former employment nor any loss of wages, hours, working conditions, seniority, fringe 
31.21 	benefits, and rights and privileges pertaining thereto. The council authority may enter 
31.22 	into an agreement specifying fair and equitable arrangements to protect the interests of 
31.23 	employees who may be affected if the council authority should acquire any interest in or 
31.24 	purchase any facilities or other property of a privately owned and operated transit system, 
31.25 	or construct, improve, or reconstruct any facilities or other property acquired from any 
31.26 	system, or provide by contract or otherwise for the operation of transportation facilities or 
31.27 	equipment in competition with, or supplementary to, the service provided by an existing 
31.28 	transit system. The agreement, specifying the terms and conditions of the protective 
31.29 	arrangements, must comply with any applicable requirements of this chapter, and with the 
31.30 	requirements of any federal law or regulation if federal aid is involved. The agreement 
31.31 	may provide for final and binding arbitration of any dispute.

31.32 	Sec. 38. Minnesota Statutes 2008, section 473.42, is amended to read:
31.33 	473.42 EMPLOYER CONTRIBUTIONS FOR CERTAIN EMPLOYEES.
32.1 	Notwithstanding any contrary provisions of section 352.029, the council authority
32.2 	shall make the employer contributions required pursuant to section 352.04, subdivision 
32.3 	3, for any employee who was on authorized leave of absence from the transit operating 
32.4 	division of the former Metropolitan Transit Commission who is employed by the labor 
32.5 	organization which is the exclusive bargaining agent representing employees of the Office 
32.6 	of Transit Operations and who is covered by the Minnesota State Retirement System in 
32.7 	addition to all other employer contributions the council authority is required to make. 

32.8 	Sec. 39. Minnesota Statutes 2008, section 473.436, is amended to read:
32.9 	473.436 COUNCIL AUTHORITY; BORROWING MONEY.
32.10 		Subd. 2.Legal investments. Certificates of indebtedness, bonds, or other 
32.11 	obligations issued by the council authority to which tax levies have been pledged pursuant 
32.12 	to section 473.446, subdivision 1, shall be proper for investment of any funds by any bank, 
32.13 	savings bank, savings association, credit union, trust company, insurance company or 
32.14 	public or municipal corporation, and may be pledged by any bank, savings bank, savings 
32.15 	association, credit union, or trust company as security for the deposit of public moneys. 
32.16 		Subd. 3.Tax exempt. Certificates of indebtedness, bonds, or other obligations 
32.17 	of the council authority shall be deemed and treated as instrumentalities of a public 
32.18 	government agency.
32.19 		Subd. 6.Temporary borrowing. On or after the first day of any fiscal year, 
32.20 	the council authority may borrow money which may be used or expended by the 
32.21 	council authority for any purpose, including but not limited to current expenses, capital 
32.22 	expenditures and the discharge of any obligation or indebtedness of the council authority. 
32.23 	The indebtedness must be represented by a note or notes which may be issued from time 
32.24 	to time in any denomination and sold at public or private sale pursuant to a resolution 
32.25 	authorizing the issuance. The resolution must set forth the form and manner of execution 
32.26 	of the notes and shall contain other terms and conditions the council authority deems 
32.27 	necessary or desirable to provide security for the holders of the notes. The note or 
32.28 	notes are payable from committed or appropriated money from taxes, grants or loans 
32.29 	of the state or federal government made to the council authority, or other revenues of 
32.30 	the council authority, and the money may be pledged to the payment of the notes. The 
32.31 	council authority is authorized to pledge to the payment of the note or notes taxes levied 
32.32 	by it under section 473.446, subdivision 1, clause (a), and if taxes are so pledged the 
32.33 	council authority shall transfer amounts received from the levy to the council authority
32.34 	for payment of the note or notes. To the extent the notes are not paid from the grant or 
32.35 	loan money pledged for the payment thereof, the principal and interest of the notes must 
33.1 	be paid from any taxes received by the council authority and any income and revenue 
33.2 	received by or accrued to the council authority during the fiscal year in which the note or 
33.3 	notes were issued, or other money of the council authority lawfully available therefor. 

33.4 	Sec. 40. Minnesota Statutes 2008, section 473.446, is amended to read:
33.5 	473.446 TRANSIT TAX LEVIES.
33.6 		Subdivision 1.Metropolitan area transit tax. (a) For the purposes of sections 
33.7 	473.405 to 473.449 and the metropolitan transit system, except as otherwise provided in 
33.8 	this subdivision, the council authority shall levy each year upon all taxable property within 
33.9 	the metropolitan area, defined in section 473.121, subdivision 2, a transit tax consisting of: 
33.10 	(1) an amount necessary to provide full and timely payment of certificates of 
33.11 	indebtedness, bonds, including refunding bonds or other obligations issued or to be issued 
33.12 	under section 473.39 by the council authority for purposes of acquisition and betterment 
33.13 	of property and other improvements of a capital nature and to which the council authority
33.14 	has specifically pledged tax levies under this clause; and 
33.15 	(2) an additional amount necessary to provide full and timely payment of certificates 
33.16 	of indebtedness issued by the council authority, after consultation with the commissioner 
33.17 	of finance, if revenues to the metropolitan area transit fund in the fiscal year in which 
33.18 	the indebtedness is issued increase over those revenues in the previous fiscal year by a 
33.19 	percentage less than the percentage increase for the same period in the revised Consumer 
33.20 	Price Index for all urban consumers for the St. Paul-Minneapolis metropolitan area 
33.21 	prepared by the United States Department of Labor.
33.22 	(b) Indebtedness to which property taxes have been pledged under paragraph (a), 
33.23 	clause (2), that is incurred in any fiscal year may not exceed the amount necessary to make 
33.24 	up the difference between (1) the amount that the council authority received or expects 
33.25 	to receive in that fiscal year from the metropolitan area transit fund and (2) the amount 
33.26 	the council authority received from that fund in the previous fiscal year multiplied by 
33.27 	the percentage increase for the same period in the revised Consumer Price Index for all 
33.28 	urban consumers for the St. Paul-Minneapolis metropolitan area prepared by the United 
33.29 	States Department of Labor.
33.30 		Subd. 2.Transit taxing district. The metropolitan transit taxing district is hereby 
33.31 	designated as that portion of the metropolitan transit area lying includes the counties of 
33.32 	Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. The transit taxing 
33.33 	district also includes any county in which one-third or more of the residents work within 
33.34 	the following named cities, towns, or unorganized territory within the counties indicated:
34.1 	(a) Anoka County. Anoka, Blaine, Centerville, Columbia Heights, Coon Rapids, 
34.2 	Fridley, Circle Pines, Hilltop, Lexington, Lino Lakes, Spring Lake Park;
34.3 	(b) Carver County. Chanhassen, the city of Chaska;
34.4 	(c) Dakota County. Apple Valley, Burnsville, Eagan, Inver Grove Heights, Lilydale, 
34.5 	Mendota, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake, West St. Paul;
34.6 	(d) Ramsey County. All of the territory within Ramsey County;
34.7 	(e) Hennepin County. Bloomington, Brooklyn Center, Brooklyn Park, Champlin, 
34.8 	Chanhassen, Crystal, Deephaven, Eden Prairie, Edina, Excelsior, Golden Valley, 
34.9 	Greenwood, Hopkins, Long Lake, Maple Grove, Medicine Lake, Minneapolis, 
34.10 	Minnetonka, Minnetonka Beach, Mound, New Hope, Orono, Osseo, Plymouth, Richfield, 
34.11 	Robbinsdale, St. Anthony, St. Louis Park, Shorewood, Spring Park, Tonka Bay, Wayzata, 
34.12 	Woodland, the unorganized territory of Hennepin County;
34.13 	(f) Scott County. Prior Lake, Savage, Shakopee;
34.14 	(g) Washington County. Baytown, the city of Stillwater, White Bear Lake, Bayport, 
34.15 	Birchwood, Cottage Grove, Dellwood, Lake Elmo, Landfall, Mahtomedi, Newport, 
34.16 	Oakdale, Oak Park Heights, Pine Springs, St. Paul Park, Willernie, Woodbury.
34.17 	The Metropolitan Council Minnesota Transit Authority in its sole discretion may 
34.18 	provide transit service by contract beyond the boundaries of the metropolitan transit 
34.19 	taxing district or to cities and towns within the taxing district which are receiving financial 
34.20 	assistance under section 473.388, upon petition therefor by an interested city, township 
34.21 	or political subdivision within the metropolitan transit area. The Metropolitan Council
34.22 	Minnesota Transit Authority may establish such terms and conditions as it deems 
34.23 	necessary and advisable for providing the transit service, including such combination of 
34.24 	fares and direct payments by the petitioner as will compensate the council authority for the 
34.25 	full capital and operating cost of the service and the related administrative activities of the 
34.26 	council authority. The amount of the levy made by any municipality to pay for the service 
34.27 	shall be disregarded when calculation of levies subject to limitations is made, provided 
34.28 	that cities and towns receiving financial assistance under section 473.388 shall not make 
34.29 	a special levy under this subdivision without having first exhausted the available local 
34.30 	transit funds as defined in section 473.388. The council authority shall not be obligated to 
34.31 	extend service beyond the boundaries of the taxing district, or to cities and towns within 
34.32 	the taxing district which are receiving financial assistance under section 473.388, under 
34.33 	any law or contract unless or until payment therefor is received. 
34.34 		Subd. 2a.Rights of debt holders. The provisions of subdivisions 1 and 2 or any 
34.35 	other law changing the boundaries of the metropolitan transit taxing district or reducing 
34.36 	the levy otherwise required to be levied within the district shall not be deemed to impair 
35.1 	the rights of holders of outstanding indebtedness to require the levy of property taxes, 
35.2 	if necessary to provide for any deficiency in accordance with the conditions of such 
35.3 	indebtedness, on all property within the limits of the metropolitan transit taxing district as 
35.4 	such limits were in effect at the date of issuance of such indebtedness.
35.5 		Subd. 3.Certification and collection. Each county treasurer shall collect and make 
35.6 	settlement of the taxes levied under subdivisions 1 and 1a with the treasurer of the council
35.7 	authority. The levy of transit taxes pursuant to this section shall not affect the amount 
35.8 	or rate of taxes which may be levied by any county or municipality or by the council
35.9 	authority for other purposes authorized by law and shall be in addition to any other 
35.10 	property tax authorized by law.
35.11 		Subd. 7.Rights of holders of debt; after 1983 levy. Beginning for taxes levied in 
35.12 	1984, payable in 1985, and for each succeeding year, as part of its levy made pursuant to 
35.13 	subdivisions 1 and 6, the council authority shall levy the amounts necessary to provide 
35.14 	full and timely payment of certificates of indebtedness, bonds, and other obligations of 
35.15 	the former Metropolitan Transit Commission, until all debt of the commission is fully 
35.16 	discharged and transfer the proceeds to the appropriate council authority account for 
35.17 	payment of its obligations. The taxes must be levied, certified, and collected in accordance 
35.18 	with the terms and conditions of the indebtedness. Nothing in Laws 1984, chapter 654 
35.19 	may impair the rights of holders of valid obligations of the former Metropolitan Transit 
35.20 	Commission to require a levy of property taxes. The council authority shall take the 
35.21 	actions necessary to comply with the terms and conditions of the obligations, including if 
35.22 	necessary the levy of property taxes to provide for a deficiency.
35.23 		Subd. 8.State review. The commissioner of revenue shall certify the council's
35.24 	authority's levy limitation under this section to the council authority by August 1 of 
35.25 	the levy year. The council authority must certify its proposed property tax levy under 
35.26 	this section to the commissioner of revenue by September 1 of the levy year. The 
35.27 	commissioner of revenue shall annually determine whether the property tax for transit 
35.28 	purposes certified by the council authority for levy following the adoption of its proposed 
35.29 	budget is within the levy limitation imposed by subdivisions 1 and 1b. The commissioner 
35.30 	shall also annually determine whether the transit tax imposed on all taxable property 
35.31 	within the metropolitan transit area but outside of the metropolitan transit taxing district 
35.32 	is within the levy limitation imposed by subdivision 1a. The determination must be 
35.33 	completed prior to September 10 of each year. If current information regarding market 
35.34 	valuation in any county is not transmitted to the commissioner in a timely manner, the 
35.35 	commissioner may estimate the current market valuation within that county for purposes 
35.36 	of making the calculations.

36.1 	Sec. 41. Minnesota Statutes 2008, section 473.448, is amended to read:
36.2 	473.448 TRANSIT ASSETS EXEMPT FROM TAX BUT MUST PAY 
36.3 	ASSESSMENTS.
36.4 	(a) Notwithstanding any other provision of law to the contrary, the properties, 
36.5 	moneys, and other assets of the council authority used for transit operations or for special 
36.6 	transportation services and all revenues or other income from the council's authority's
36.7 	transit operations or special transportation services are exempt from all taxation, licenses, 
36.8 	or fees imposed by the state or by any county, municipality, political subdivision, taxing 
36.9 	district, or other public agency or body of the state, except to the extent that the property is 
36.10 	subject to the sales and use tax under chapter 297A.
36.11 	(b) Notwithstanding paragraph (a), the council's authority's transit properties are 
36.12 	subject to special assessments levied by a political subdivision for a local improvement in 
36.13 	amounts proportionate to and not exceeding the special benefit received by the properties 
36.14 	from the improvement.

36.15 	Sec. 42. Minnesota Statutes 2008, section 473.449, is amended to read:
36.16 	473.449 ACT EXCLUSIVE.
36.17 	The exercise by the council authority of the powers provided in sections 473.405 to 
36.18 	473.449 shall not be subject to regulation by or the jurisdiction or control of any other 
36.19 	public body or agency, either state, county, or municipal, except as specifically provided 
36.20 	in this chapter. 

36.21 	Sec. 43. STATEWIDE MASS TRANSIT PLAN.
 36.22 	The Minnesota Transit Authority shall prepare a comprehensive integrated statewide 
36.23 	mass transit plan and report that plan to the legislature by January 1, 2010. The plan shall 
36.24 	include the requirement that local governments adopt land use and subdivision regulations 
36.25 	to reduce reliance on automobiles by allowing transit-oriented developments on lands 
36.26 	along dedicated transit routes, and to encourage redevelopment of existing parking areas 
36.27 	for transit-oriented development.

36.28 	Sec. 44. REVISOR'S INSTRUCTION.
 36.29 	The revisor of statutes shall replace the term "Metropolitan Council" with 
36.30 	"Minnesota Transit Authority" in Minnesota Statutes, sections 16A.88, subdivision 
36.31 	2; 169.306, paragraph (d), clause (1); 174.30, subdivision 4, paragraph (e); 221.012, 
36.32 	subdivision 38, paragraph (b); 275.065, subdivision 3, paragraph (i), clause (1); and 
36.33 	297A.70, subdivision 2, paragraph (a), clause (4).

37.1 	Sec. 45.  REPEALER.
 37.2 	Minnesota Statutes 2008, sections 297A.992; 297A.993; 398A.04, subdivisions 2 
37.3 	and 3; 398A.10; 473.384, subdivisions 6 and 7; 473.387; 473.391; 473.399, subdivisions 
37.4 	1, 1a, 4, and 5; 473.3994, subdivisions 1a, 2, 3, 4, 5, 7, 8, 9, 10, and 14; and 473.4461, and 
37.5 	Laws 2008, chapter 152, article 6, section 8,  are repealed.