1.1 	A bill for an act
1.2 	relating to transportation; imposing a sales tax
1.3 	within the metropolitan area with the proceeds
1.4 	dedicated to metropolitan transportation and transit
1.5 	improvements and services; providing for allocation of
1.6 	revenues for the motor vehicle sales tax;
1.7 	appropriating money; amending Minnesota Statutes 2004,
1.8 	section 297B.09, subdivision 1; proposing coding for
1.9 	new law in Minnesota Statutes, chapter 174; proposing
1.10 	coding for new law as Minnesota Statutes, chapter 473J.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	Section 1. [174.56] HIGH-SPEED RAIL FUND.
1.13 	A high-speed rail fund is created in the state treasury,
1.14 	consisting of money credited to the fund under section 297B.09,
1.15 	subdivision 1.  Money in the fund is appropriated to the
1.16 	commissioner of transportation for the planning and design,
1.17 	including environmental studies, of the Minnesota portion of a
1.18 	high-speed rail corridor between the Twin Cities and Chicago as
1.19 	part of the Midwest Regional Rail System.

1.20 	Sec. 2. Minnesota Statutes 2004, section 297B.09,
1.21 	subdivision 1, is amended to read:
1.22 		Subdivision 1.Deposit of revenues.  (a) Money collected
1.23 	and received under this chapter must be deposited as provided in
1.24 	this subdivision.
1.25 	(b) From July 1, 2002, to June 30, 2003, 32 percent of the
1.26 	money collected and received must be deposited in the highway
1.27 	user tax distribution fund, 20.5 percent must be deposited in
1.28 	the metropolitan area transit fund under section 16A.88, and
2.1 	1.25 percent must be deposited in the greater Minnesota transit
2.2 	fund under section 16A.88.  The remaining money must be
2.3 	deposited in the general fund.
2.4 	(c) From July 1, 2003 2005, to June 30, 2007, 30 32 
2.5 	percent of the money collected and received must be deposited in
2.6 	the highway user tax distribution fund, 21.5 31.5 percent must
2.7 	be deposited in the metropolitan area transit fund under section
2.8 	16A.88, 1.43 and nine percent must be deposited in the greater
2.9 	Minnesota transit fund under section 16A.88, 0.65 percent must
2.10 	be deposited in the county state-aid highway fund, and 0.17
2.11 	percent must be deposited in the municipal state-aid street
2.12 	fund.  The remaining money must be deposited in the general fund.
2.13 	(d) On and after July 1, 2007, 32 percent of the money
2.14 	collected and received must be deposited in the highway user tax
2.15 	distribution fund, 20.5 percent must be deposited in the
2.16 	metropolitan area transit fund under section 16A.88, and 1.25
2.17 	percent must be deposited in the greater Minnesota transit fund
2.18 	under section 16A.88.  The remaining money must be deposited in
2.19 	the general fund.
2.20 	(c) From July 1, 2007, to June 30, 2008, 32 percent of the
2.21 	money collected and received must be deposited in the highway
2.22 	user tax distribution fund, 39 percent must be deposited in the
2.23 	metropolitan area transit fund under section 16A.88, and 14
2.24 	percent must be deposited in the greater Minnesota transit fund
2.25 	under section 16A.88.  The remaining money must be deposited in
2.26 	the general fund.
2.27 	(d) From July 1, 2008, to June 30, 2009, 32 percent of the
2.28 	money collected and received must be deposited in the highway
2.29 	user tax distribution fund, 41.5 percent must be deposited in
2.30 	the metropolitan area transit fund under section 16A.88, and 14
2.31 	percent must be deposited in the greater Minnesota transit fund
2.32 	under section 16A.88.  The remaining money must be deposited in
2.33 	the general fund.
2.34 	(e) From July 1, 2009, to June 30, 2010, 32 percent of the
2.35 	money collected and received must be deposited in the highway
2.36 	user tax distribution fund, 44 percent must be deposited in the
3.1 	metropolitan area transit fund under section 16A.88, and 14
3.2 	percent must be deposited in the greater Minnesota transit fund
3.3 	under section 16A.88.  The remaining money must be deposited in
3.4 	the general fund.
3.5 	(f) On and after July 1, 2010, 32 percent of the money
3.6 	collected and received must be deposited in the highway user tax
3.7 	distribution fund, 46 percent must be deposited in the
3.8 	metropolitan area transit fund under section 16A.88, and 14
3.9 	percent must be deposited in the greater Minnesota transit fund
3.10 	under section 16A.88.  The remaining money must be deposited in
3.11 	the general fund.
3.12 	(g) In the fiscal years ending June 30, 2006, and June 30,
3.13 	2007, the commissioner shall transfer, from the amount to be
3.14 	credited to the trunk highway fund from the amount deposited in
3.15 	the highway user tax distribution fund under paragraph (b),
3.16 	$10,000,000 for deposit in the high-speed rail fund.

3.17 	Sec. 3. [473J.01] METROPOLITAN TRANSPORTATION AREA.
3.18 	The metropolitan transportation area is the area within the
3.19 	counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
3.20 	Washington.

3.21 	Sec. 4. [473J.02] SALES TAX.
3.22 	A sales tax and a use tax of 0.50 percent is imposed on
3.23 	retail sales and uses taxable under chapter 297A that occur in
3.24 	the metropolitan transportation area.  These taxes are in
3.25 	addition to the taxes imposed by sections 297A.62, subdivision
3.26 	1, and 297A.63, subdivision 1, and any local taxes imposed
3.27 	pursuant to a special law.

3.28 	EFFECTIVE DATE. This section is effective for sales and
3.29 	purchases made after June 30, 2005.

3.30 	Sec. 5. [473J.03] TAX COLLECTION.
3.31 	The taxes imposed by section 473J.02 must be reported and
3.32 	paid to the commissioner of revenue with the taxes imposed by
3.33 	chapter 297A and in accordance with an agreement between the
3.34 	counties in the metropolitan transportation area and the
3.35 	commissioner of revenue.  The taxes are subject to the same
3.36 	interest, penalty, and other provisions provided for sales and
4.1 	use taxes under chapters 289A and 297A.  The commissioner has
4.2 	the same powers to assess and collect the taxes as are given the
4.3 	commissioner in chapters 270, 289A, and 297A to assess and
4.4 	collect sales and use taxes.  The commissioner shall deposit the
4.5 	revenues, including interest and penalties, derived from the
4.6 	taxes in the state treasury and credit them to the general fund.

4.7 	EFFECTIVE DATE. This section is effective for sales and
4.8 	purchases made after June 30, 2005.

4.9 	Sec. 6. [473J.04] METROPOLITAN TRANSPORTATION SALES TAX
4.10 	ACCOUNT.
4.11 		Subdivision 1.Transfer to fund. (a) The revenue
4.12 	collected under section 473J.03, less the cost of collection, is
4.13 	appropriated from the general fund to the commissioner of
4.14 	finance for transfer to a special account within the
4.15 	metropolitan area transit fund in the state treasury, to be
4.16 	called the metropolitan transportation sales tax account.
4.17 	(b) The cost of collection equals the direct and indirect
4.18 	costs of the Department of Revenue to administer, audit, and
4.19 	collect the revenue, plus the metropolitan transportation area's
4.20 	proportionate share of the indirect cost of administering all
4.21 	local sales and use taxes under section 297A.99.
4.22 		Subd. 2.Use of fund. Money in the metropolitan
4.23 	transportation sales tax account is appropriated as follows:
4.24 	(1) 85 percent to the Metropolitan Council:
4.25 	(i) for capital and operating costs of bus, rail, and
4.26 	paratransit service within the metropolitan transportation area,
4.27 	including special transportation service under section 473.386
4.28 	and replacement transit service under section 473.388; and 
4.29 	(ii) to provide for implementation by 2020 of the transit
4.30 	portion of the Metropolitan Council's "2030 Transportation
4.31 	Policy Plan"; and 
4.32 	(2) 15 percent to the Metropolitan Council for annual
4.33 	distribution based on population to counties in the metropolitan
4.34 	transportation area that are eligible for distribution under
4.35 	section 473J.05, subdivision 2, with a minimum annual
4.36 	distribution to each qualifying county of $1,500,000.  For
5.1 	purposes of this subdivision, "population" has the meaning given
5.2 	in section 477A.011, subdivision 3.  This money must be used as
5.3 	provided in section 473J.05 by counties, home rule charter and
5.4 	statutory cities, and towns to plan, design, build, maintain,
5.5 	promote, and operate public transit, bicycle, and pedestrian
5.6 	projects, and to plan, design, and provide transportation
5.7 	infrastructure associated with transit-oriented development.
5.8 	
EFFECTIVE DATE. This section is effective for sales and
5.9 	purchases made after June 30, 2005.

5.10 	Sec. 7. [473J.05] COUNTY USE OF DISTRIBUTION.
5.11 		Subdivision 1.Purposes. A county receiving money
5.12 	distributed by the Metropolitan Council under section 473J.04
5.13 	must distribute 50 percent of the funds to home rule charter and
5.14 	statutory cities and towns within the county.  To receive a
5.15 	distribution from the county, a city or town shall apply for a
5.16 	grant from the county under this section by the time required by
5.17 	the county.  The application must contain information specifying
5.18 	the project, amount of funds requested, and how the funds will
5.19 	be expended to further the implementation of the project.  Funds
5.20 	may be used by the county, or distributed to a city for use by
5.21 	the city, only to:
5.22 	(1) plan, design, build, maintain, promote, and operate
5.23 	public transit;
5.24 	(2) plan, design, build, maintain, promote, and operate
5.25 	bicycle programs and pathways including, but not limited to,
5.26 	bicycle racks, bicycle lockers, off-road bicycle paths,
5.27 	on-street bicycle striping, signage, lighting, and other
5.28 	projects with a primary focus on bicycle transportation;
5.29 	(3) plan, design, build, maintain, promote, and operate
5.30 	pedestrian programs within the county including, but not limited
5.31 	to, sidewalks, paths, signage, lighting, and pedestrian
5.32 	crossings with an emphasis on pedestrian transportation;
5.33 	(4) plan, design, and provide transportation infrastructure
5.34 	associated with transit-oriented development; and 
5.35 	(5) provide the local match for federal transportation
5.36 	grants for projects that encourage transit use, bicycling, and
6.1 	walking under the federal Transportation Enhancement, Congestion
6.2 	Mitigation and Air Quality, or Surface Transportation programs.
6.3 		Subd. 2.Eligibility to receive money. (a) To be
6.4 	eligible to receive money distributed by the Metropolitan
6.5 	Council under section 473J.04, a county shall by January 1, 2006:
6.6 	(1) create a separate account in its general fund to credit
6.7 	the money; and 
6.8 	(2) set up accounting procedures to ensure that money in
6.9 	the separate account is spent only for the purposes in this
6.10 	section.
6.11 	(b) In each following year, each county shall also submit a
6.12 	report by April 1 of each year to the chair of the Metropolitan
6.13 	Council detailing for the previous calendar year:
6.14 	(1) how the money was spent including, but not limited to,
6.15 	specific information on the planning completed, the programs
6.16 	implemented, the staff resources required, and a full accounting
6.17 	of how the revenues were spent and distributed to local
6.18 	communities; and 
6.19 	(2) the resulting increase in transit, bicycle, and
6.20 	pedestrian travel; the improvement in transit, bicycle, and
6.21 	pedestrian safety; the impact on roadway congestion; and the
6.22 	need for vehicle parking.
6.23 	(c) The chair of the Metropolitan Council shall withhold
6.24 	all or part of the funds to be distributed to a county under
6.25 	this section if the county fails to comply with this section.
6.26 	Funds withheld under this paragraph may be distributed to the
6.27 	county in the following year if the requirements of this section
6.28 	have been met.  If a county has not met these requirements by
6.29 	the date of the following year's distribution, the withheld
6.30 	funds and the funds for distribution to the county in the
6.31 	current year must be included in the amount for distribution to
6.32 	qualifying counties.
6.33 		Subd. 3.Report. By July 1 of each odd-numbered year,
6.34 	the Metropolitan Council shall report on how the money was spent
6.35 	and the resulting improvements within the metropolitan area in
6.36 	transit, bicycle travel, pedestrian travel, and safety to the
7.1 	committees of the house of representatives and senate with
7.2 	jurisdiction over transportation and transportation finance.

7.3 	Sec. 8. APPLICATION.
 7.4 	Sections 3 to 7 apply in the counties of Anoka, Carver,
7.5 	Dakota, Hennepin, Ramsey, Scott, and Washington.

7.6 	Sec. 9. APPROPRIATION.
 7.7 	$37,650,000 is appropriated July 1, 2005, from the general
7.8 	fund to the commissioner of finance for deposit as follows:
7.9 	$28,750,000 to the metropolitan area transit fund for use by the
7.10 	Metropolitan Council as provided under Minnesota Statutes,
7.11 	section 16A.88, subdivision 2; and $8,900,000 to the greater
7.12 	Minnesota transit fund for use by the commissioner of
7.13 	transportation as provided under Minnesota Statutes, section
7.14 	16A.88, subdivision 1.