1.1                          A bill for an act
  1.2             relating to transportation; providing for the 
  1.3             allocation of revenues from the sales tax on motor 
  1.4             vehicles; proposing a constitutional amendment to 
  1.5             dedicate revenues from the sales tax on motor vehicles 
  1.6             to highways and transit; amending Minnesota Statutes 
  1.7             1994, section 297B.09, subdivision 1. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1994, section 297B.09, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [GENERAL FUND SHARE.] (a) Money collected 
  1.12  and received under this chapter must be deposited ~~in the state~~ 
  1.13  ~~treasury and credited to the general fund.  The amounts~~ 
  1.14  ~~collected and received shall be credited as provided in this~~ 
  1.15  ~~subdivision, and transferred from the general fund on July 15~~ 
  1.16  ~~and February 15 of each fiscal year.  The commissioner of~~ 
  1.17  ~~finance must make each transfer based upon the actual receipts~~ 
  1.18  ~~of the preceding six calendar months and include the interest~~ 
  1.19  ~~earned during that six-month period.  The commissioner of~~ 
  1.20  ~~finance may establish a quarterly or other schedule providing~~ 
  1.21  ~~for more frequent payments to the transit assistance fund if the~~ 
  1.22  ~~commissioner determines it is necessary or desirable to provide~~ 
  1.23  ~~for the cash flow needs of the recipients of money from the~~ 
  1.24  ~~transit assistance fund.~~  
  1.25     ~~(b) Twenty-five percent of the money collected and received~~ 
  1.26  ~~under this chapter after June 30, 1990, and before July 1, 1991,~~ 
  2.1   ~~must be transferred to the highway user tax distribution fund~~ 
  2.2   ~~and the transit assistance fund for apportionment as follows:~~  
  2.3   ~~75 percent must be transferred to the highway user tax~~ 
  2.4   ~~distribution fund for apportionment in the same manner and for~~ 
  2.5   ~~the same purposes as other money in that fund, and the remaining~~ 
  2.6   ~~25 percent of the money must be transferred to the transit~~ 
  2.7   ~~assistance fund to be appropriated to the commissioner of~~ 
  2.8   ~~transportation for transit assistance within the state and to~~ 
  2.9   ~~the metropolitan council.~~  
  2.10     ~~(c) The distributions under this subdivision to the highway~~ 
  2.11  ~~user tax distribution fund until June 30, 1991, and to the trunk~~ 
  2.12  ~~highway fund thereafter, must be reduced by the amount necessary~~ 
  2.13  ~~to fund the appropriation under section 41A.09, subdivision 1.~~  
  2.14  ~~For the fiscal years ending June 30, 1988, and June 30, 1989,~~ 
  2.15  ~~the commissioner of finance, before making the transfers~~ 
  2.16  ~~required on July 15 and January 15 of each year, shall estimate~~ 
  2.17  ~~the amount required to fund the appropriation under section~~ 
  2.18  ~~41A.09, subdivision 1, for the six-month period for which the~~ 
  2.19  ~~transfer is being made.  The commissioner shall then reduce the~~ 
  2.20  ~~amount transferred to the highway user tax distribution fund by~~ 
  2.21  ~~the amount of that estimate.  The commissioner shall reduce the~~ 
  2.22  ~~estimate for any six-month period by the amount by which the~~ 
  2.23  ~~estimate for the previous six-month period exceeded the amount~~ 
  2.24  ~~needed to fund the appropriation under section 41A.09,~~ 
  2.25  ~~subdivision 1, for that previous six-month period.  If at any~~ 
  2.26  ~~time during a six-month period in those fiscal years the amount~~ 
  2.27  ~~of reduction in the transfer to the highway user tax~~ 
  2.28  ~~distribution fund is insufficient to fund the appropriation~~ 
  2.29  ~~under section 41A.09, subdivision 1, for that period, the~~ 
  2.30  ~~commissioner shall transfer to the general fund from the highway~~ 
  2.31  ~~user tax distribution fund an additional amount sufficient to~~ 
  2.32  ~~fund the appropriation for that period, but the additional~~ 
  2.33  ~~amount so transferred to the general fund in a six-month period~~ 
  2.34  ~~may not exceed the amount transferred to the highway user tax~~ 
  2.35  ~~distribution fund for that six-month period.~~ as follows: 
  2.36     (1) in the fiscal year ending June 30, 1998, 15 percent to 
  3.1   the highway user tax distribution fund, five percent to the 
  3.2   transit assistance fund, and the remainder to the general fund; 
  3.3      (2) in the fiscal year ending June 30, 1999, 26.25 percent 
  3.4   to the highway user tax distribution fund, 8.75 percent to the 
  3.5   transit assistance fund, and the remainder to the general fund; 
  3.6      (3) in the fiscal year ending June 30, 2000, 37.5 percent 
  3.7   to the highway user tax distribution fund, 12.5 percent to the 
  3.8   transit assistance fund, and the remainder to the general fund; 
  3.9      (4) in the fiscal year ending June 30, 2001, 56.25 percent 
  3.10  to the highway user tax distribution fund, 18.75 percent to the 
  3.11  transit assistance fund, and the remainder to the general fund; 
  3.12  and 
  3.13     (5) in the fiscal year ending June 30, 2002, and all 
  3.14  subsequent years, 75 percent to the highway user tax 
  3.15  distribution fund and 25 percent to the transit assistance fund. 
  3.16     Sec. 2.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
  3.17     An amendment to the Minnesota Constitution, article XIV, is 
  3.18  proposed to the people.  If the amendment is adopted, article 
  3.19  XIV will be amended by adding a section to read: 
  3.20     Sec. 12.  [SALES TAX ON MOTOR VEHICLES.] The proceeds of 
  3.21  any sales tax levied by law on the sale of new and used motor 
  3.22  vehicles must be deposited as follows: 
  3.23     In the fiscal year ending June 30, 1998, 15 percent must be 
  3.24  deposited in the highway user tax distribution fund and five 
  3.25  percent must be deposited in a fund created by law for public 
  3.26  transit assistance. 
  3.27     In the fiscal year ending June 30, 1999, 26.25 percent must 
  3.28  be deposited in the highway user tax distribution fund and 8.75 
  3.29  percent must be deposited in a fund created by law for public 
  3.30  transit assistance. 
  3.31     In the fiscal year ending June 30, 2000, 37.5 percent must 
  3.32  be deposited in the highway user tax distribution fund and 12.5 
  3.33  percent must be deposited in a fund created by law for public 
  3.34  transit assistance. 
  3.35     In the fiscal year ending June 30, 2001, 56.25 percent must 
  3.36  be deposited in the highway user tax distribution fund and 18.75 
  4.1   percent must be deposited in a fund created by law for public 
  4.2   transit assistance. 
  4.3      In the fiscal year ending June 30, 2002, and all subsequent 
  4.4   years, 75 percent must be deposited in the highway user tax 
  4.5   distribution fund and 25 percent must be deposited in a fund 
  4.6   created by law for public transit assistance. 
  4.7      Sec. 3.  [SUBMISSION TO VOTERS.] 
  4.8      The constitutional amendment must be submitted to the 
  4.9   voters at the 1996 general election.  The question submitted 
  4.10  must be: 
  4.11     "Shall the Minnesota Constitution be amended to provide 
  4.12  that an increasing percentage of the proceeds from a sales tax 
  4.13  on motor vehicles, reaching 100 percent in fiscal year 2002 and 
  4.14  subsequent years, be dedicated solely to the highway user tax 
  4.15  distribution fund and a fund for public transit assistance? 
  4.16                                Yes......
  4.17                                No........"