1.1 	A bill for an act
1.2 	relating to transportation; authorizing bonding and
1.3 	appropriating money for highways and transit;
1.4 	modifying allocation of proceeds of motor vehicle
1.5 	sales tax; proposing an amendment to the Minnesota
1.6 	Constitution, article XIV, by adding sections;
1.7 	providing for the allocation of revenue of tax on sale
1.8 	of new and used motor vehicles; making technical and
1.9 	clarifying changes; amending Minnesota Statutes 2004,
1.10 	section 297B.09, subdivision 1.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	Section 1. HIGHWAY AND TRANSIT APPROPRIATIONS.
 1.13 		Subdivision 1.Trunk highway projects financed by state
1.14 	bonds. (a) $4,500,000,000 is appropriated from the bond
1.15 	proceeds account in the trunk highway fund to the commissioner
1.16 	of transportation for the actual construction, reconstruction,
1.17 	and improvement of trunk highways.  This includes the cost of
1.18 	actual payments to landowners for lands acquired for highway
1.19 	rights-of-way, payments to lessees, interest subsidies, and
1.20 	relocation expenses.
1.21 	(b) The commissioner of transportation may use up to
1.22 	$765,000,000 of this appropriation for program delivery.  Of
1.23 	this amount, $50,000,000 is available in fiscal year 2006.
1.24 	(c) The commissioner of transportation shall use
1.25 	$100,000,000 of this appropriation for accelerating transit
1.26 	capital improvements on trunk highways, such as shoulder bus
1.27 	lanes, bus park-and-ride facilities, ramp meter bypass
1.28 	facilities, and high occupancy vehicle facilities that serve bus
2.1 	rapid transit.
2.2 		Subd. 2.Bond sale expenses. $4,500,000 is appropriated
2.3 	from the bond proceeds account in the trunk highway fund to the
2.4 	commissioner of finance for bond sale expenses under Minnesota
2.5 	Statutes, sections 16A.641, subdivision 8, and 167.50,
2.6 	subdivision 4.
2.7 		Subd. 3.Antilapse. Notwithstanding other law to the
2.8 	contrary, the appropriations in this section do not cancel until
2.9 	June 30, 2020.
2.10 	
EFFECTIVE DATE. This section is effective the day
2.11 	following final enactment.

2.12 	Sec. 2. BOND SALE.
 2.13 	To provide the money appropriated in section 1,
2.14 	subdivisions 1 and 2, from the bond proceeds account in the
2.15 	trunk highway fund, the commissioner of finance shall sell and
2.16 	issue bonds of the state in an amount up to $4,500,000,000 in
2.17 	the manner, on the terms, and with the effect prescribed by
2.18 	Minnesota Statutes, sections 167.50 to 167.52 and by the
2.19 	Minnesota Constitution, article XIV, section 11, at the times
2.20 	and in the amounts requested by the commissioner of
2.21 	transportation.  The proceeds of the bonds, except accrued
2.22 	interest and any premium received from the sale of the bonds,
2.23 	must be deposited in the bond proceeds account in the trunk
2.24 	highway fund.

2.25 	EFFECTIVE DATE. This section is effective the day
2.26 	following final enactment.

2.27 	Sec. 3. Minnesota Statutes 2004, section 297B.09,
2.28 	subdivision 1, is amended to read:
2.29 		Subdivision 1.Deposit of revenues.  (a) Money collected
2.30 	and received under this chapter must be deposited as provided in
2.31 	this subdivision.
2.32 	(b) From July 1, 2002, to June 30, 2003, 32 percent of the
2.33 	money collected and received must be deposited in the highway
2.34 	user tax distribution fund, 20.5 percent must be deposited in
2.35 	the metropolitan area transit fund under section 16A.88, and
2.36 	1.25 percent must be deposited in the greater Minnesota transit
3.1 	fund under section 16A.88.  The remaining money must be
3.2 	deposited in the general fund.
3.3 	(c) From July 1, 2003, to June 30, 2007, 30 percent of the
3.4 	money collected and received must be deposited in the highway
3.5 	user tax distribution fund, 21.5 percent must be deposited in
3.6 	the metropolitan area transit fund under section 16A.88, 1.43
3.7 	percent must be deposited in the greater Minnesota transit fund
3.8 	under section 16A.88, 0.65 percent must be deposited in the
3.9 	county state-aid highway fund, and 0.17 percent must be
3.10 	deposited in the municipal state-aid street fund.  The remaining
3.11 	money must be deposited in the general fund.
3.12 	(d) On and after From July 1, 2007, 32 through June 30,
3.13 	2008, 38.250percent of the money collected and received must be
3.14 	deposited in the highway user tax distribution fund, 20.5 24.225 
3.15 	percent must be deposited in the metropolitan area transit fund
3.16 	under section 16A.88, and 1.25 1.275 percent must be deposited
3.17 	in the greater Minnesota transit fund under section 16A.88.  The
3.18 	remaining money must be deposited in the general fund.
3.19 	(c) From July 1, 2008, through June 30, 2009, 44.250
3.20 	percent of the money collected and received must be deposited in
3.21 	the highway user tax distribution fund, 28.025 percent must be
3.22 	deposited in the metropolitan area transit fund under section
3.23 	16A.88, and 1.475 percent must be deposited in the greater
3.24 	Minnesota transit fund under section 16A.88.  The remaining
3.25 	money must be deposited in the general fund.
3.26 	(d) From July 1, 2009, through June 30, 2010, 50.250
3.27 	percent of the money collected and received must be deposited in
3.28 	the highway user tax distribution fund, 31.825 percent must be
3.29 	deposited in the metropolitan area transit fund under section
3.30 	16A.88, and 1.675 percent must be deposited in the greater
3.31 	Minnesota transit fund under section 16A.88.  The remaining
3.32 	money must be deposited in the general fund.
3.33 	(e) From July 1, 2010, through June 30, 2011, 56.250
3.34 	percent of the money collected and received must be deposited in
3.35 	the highway user tax distribution fund, 35.625 percent must be
3.36 	deposited in the metropolitan area transit fund under section
4.1 	16A.88, and 1.875 percent must be deposited in the greater
4.2 	Minnesota transit fund under section 16A.88.  The remaining
4.3 	money must be deposited in the general fund.
4.4 	(f) On and after July 1, 2011, 60 percent of the money
4.5 	collected and received must be deposited in the highway user tax
4.6 	distribution fund, 38 percent in the metropolitan area transit
4.7 	fund under section 16A.88, and two percent must be deposited in
4.8 	the greater Minnesota transit fund under section 16A.88.
4.9 	
EFFECTIVE DATE. This section is effective July 1, 2007,
4.10 	only if the constitutional amendment proposed in section 4 is
4.11 	adopted by the people at the 2006 general election.

4.12 	Sec. 4. CONSTITUTIONAL AMENDMENT PROPOSED.
 4.13 	An amendment to the Minnesota Constitution is proposed to
4.14 	the people.  If the amendment is adopted, two sections will be
4.15 	added to article XIV to read:
4.16 	Sec. 12.  Beginning with the fiscal year starting July 1,
4.17 	2007, 63.75 percent of the revenue from a tax imposed by the
4.18 	state on the sale of a new or used motor vehicle must be
4.19 	apportioned for the transportation purposes described in section
4.20 	13, then the revenue apportioned for transportation purposes
4.21 	must be increased by ten percent for each subsequent fiscal year
4.22 	through June 30, 2011, and then the revenue must be apportioned
4.23 	100 percent for transportation purposes after June 30, 2011.
4.24 	Sec. 13.  The revenue apportioned in section 12 must be
4.25 	allocated for the following transportation purposes:  60 percent
4.26 	to the highway user tax distribution fund, 38 percent to the
4.27 	metropolitan area transit fund established by law, and two
4.28 	percent to the greater Minnesota transit fund established by law.

4.29 	Sec. 5. SUBMISSION TO VOTERS.
 4.30 	The Constitutional amendment proposed in section 4 must be
4.31 	presented to the people at the 2006 general election.  The
4.32 	question submitted must be:
4.33 	"Shall the Minnesota Constitution be amended to dedicate
4.34 	revenue from a tax on the sale of new and used motor vehicles
4.35 	over a five-year period, so that after June 30, 2011, all of the
4.36 	revenue is dedicated 60 percent for streets and highways, 38
5.1 	percent for public transit in the metropolitan area, and two
5.2 	percent for public transit outside the metropolitan area? 
5.3 	Yes .......
5.4 	                                   No ........"