.................... moves to amend H.F. No. 2395 as follows:
Page 8, delete section 1 and insert:
"Section 1. Minnesota Statutes 2012, section 297A.992, is amended to read:
TRANSPORTATION AREA TRANSIT SALES
1.5TAX; TAX, JOINT POWERS BOARD.
Subdivision 1. Definitions.
For purposes of this section, the following terms have
the meanings given them:
(1) "baseline sales tax proceeds" means (i) the proceeds from the sales and use taxes
1.9imposed under subdivision 2, plus (ii) one quarter of one percent of the total proceeds
1.10from the sales and use taxes imposed under subdivision 2a and collected in Scott or
area" means the counties
participating in the joint
1.13 powers agreement under subdivision 3;
1.14 (2) "eligible county" means the county
of Anoka, Carver, Dakota, Hennepin,
(3) "committee" means the Grant Evaluation and Ranking System (GEARS)
(4) "minimum guarantee county" means any metropolitan county or eligible county
1.19 that is participating in the joint powers agreement under subdivision 3, whose proportion
1.20 of the annual sales tax revenue under this section collected within that county is less
1.21 than or equal to three percent; and
1.22 (4) "net transit sales tax proceeds" means the total proceeds from the sales and use
1.23taxes imposed under this section, less (i) the baseline sales tax proceeds, and (ii) the
1.24deductions identified under subdivision 8; and
(5) "population" means the population, as defined in section
, estimated or established by July 15 of the year prior to the calendar year in which
the representatives will serve on the Grant Evaluation and Ranking System Committee
established under subdivision 5.
Subd. 2. Authorization; rates.
(a) Notwithstanding section
1, 2, and 3, or
, or any other law, the board of a county participating in a
joint powers agreement as specified in this section shall impose by resolution (1) a
sales and use tax at a rate of one-quarter of one percent on retail
sales and uses taxable under this chapter, and (2) an excise tax of $20 per motor vehicle,
as defined in section
297B.01, subdivision 11
, purchased or acquired from any person
engaged in the business of selling motor vehicles at retail, occurring within the jurisdiction
of the taxing authority. The taxes authorized are to fund transportation improvements as
specified in this section, including debt service on obligations issued to finance such
improvements pursuant to subdivision 7.
(b) The tax imposed under this section is not included in determining if the total tax
on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
12, section 87, or in determining a tax that may be imposed under any other limitations.
2.17 Subd. 2a. Additional tax; rates. (a) A local sales tax is imposed in the metropolitan
2.18counties, as defined in section 473.121, subdivision 4. In order to maintain the same rate
2.19across the region, the tax is imposed in each county as follows:
2.20 (1) effective for sales and purchases made after June 30, 2014, a sales and use tax on
2.21retail sales and uses taxable under this chapter, at a rate equal to one percent minus the
2.22tax rate imposed by each county under subdivision 2; and
2.23 (2) effective for vehicles acquired after June 30, 2014, if not imposed by a county
2.24under subdivision 2, an excise tax of $20 per motor vehicle, as defined in section 297B.01,
2.25subdivision 11, purchased or acquired from any person engaged in the business of selling
2.26motor vehicles at retail, occurring within the jurisdiction of the county.
2.27 (b) The taxes imposed under this subdivision are not included in determining if the
2.28total tax on lodging in the city of Minneapolis exceeds the maximum allowed tax under
2.29Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special Session
2.30chapter 5, article 12, section 87, and Laws 2012, chapter 299, article 3, section 3, or in
2.31determining a tax that may be imposed under any other limitations.
Subd. 3. Joint powers agreement. (a)
Before imposing the taxes authorized in
an eligible a
county must declare by resolution of its county board to
2.34 of the metropolitan transportation area and must
enter into a joint powers agreement. The
joint powers agreement:
(1) must form a joint powers board, as specified in subdivision 4;
(2) must provide a process that allows
any eligible a
county in the metropolitan
, by resolution of its county board, to join the joint powers board and impose the
taxes authorized in subdivision 2;
(3) may provide for withdrawal of a participating county before final termination of
the agreement; and
(4) may provide for a weighted voting system for joint powers board decisions.
3.7 (b) All counties in the metropolitan area shall enter into an amended joint powers
3.8agreement that conforms to the provisions of this section.
Subd. 4. Joint powers board.
(a) The joint powers board must consist of one
or more commissioners of each county
in the metropolitan
appointed by its county board, and the chair of the Metropolitan Council, who must have
voting rights, subject to subdivision 3, clause (4). The joint powers board has the powers
and duties provided in this section and section
(b) The joint powers board may utilize (1)
no more than three-fourths of one
percent of the baseline transit sales tax
of the taxes imposed under this section
for ordinary administrative expenses incurred in carrying out the provisions of this
section, and (2) an amount as provided in subdivision 5a, paragraph (f)
. Any additional
administrative expenses must be paid by the participating counties.
(c) The joint powers board may establish a technical advisory group that is separate
from the GEARS Committee. The group must consist of representatives of cities, counties,
or public agencies, including the Metropolitan Council. The technical advisory group
must be used solely for technical consultation purposes.
3.23 (d) The chair of the joint powers board must be a county commissioner who is
3.24elected by the board.
Subd. 5. Grant
application and awards; Grant Evaluation and Ranking System
3.26 (GEARS) Committee process, general requirements.
(a) The joint powers board shall
establish a grant application process and identify the amount of available funding for grant
awards. Grant applications must be submitted in a form prescribed by the joint powers
board. An applicant must provide, in addition to all other information required by the joint
powers board, the estimated cost of the project, the amount of the grant sought, possible
sources of funding in addition to the grant sought, and identification of any federal funds
that will be utilized if the grant is awarded. A grant application seeking transit capital
funding must identify the source of money necessary to operate the transit improvement.
(b) The joint powers board shall establish a timeline and procedures for the award of
grants, and may award grants only to the state and political subdivisions. The board shall
define objective criteria for the award of grants, which must include, but not be limited to,
consistency with the most recent version of the transportation policy plan adopted by the
Metropolitan Council under section
. The joint powers board shall maximize the
availability and use of federal funds in projects funded under this section.
(c) Grants must be funded by the proceeds of the taxes imposed under this section, or
4.5by bonds, notes, or other obligations issued by the joint powers board under subdivision 7.
4.6 Subd. 5a. Grant awards; Grant Evaluation and Ranking System (GEARS)
The joint powers board shall establish a GEARS Committee, which
must consist of:
(1) one county commissioner from each county
in the metropolitan
area, appointed by its county board;
(2) one elected city representative from each county
in the metropolitan
(3) one additional elected city representative from each county for every additional
400,000 in population, or fraction of 400,000, in the county that is above 400,000 in
(4) the chair of the Metropolitan Council Transportation Committee.
Each city representative must be elected at a meeting of cities in the
area, which must be convened for that purpose by the
Association of Metropolitan Municipalities.
The committee shall:
evaluate grant applications following objective criteria established by the joint
, and must;
provide to the joint powers board a selection list of transportation projects that
includes a priority ranking;
4.25 (3) annually evaluate and award grants to local units of government, including
4.26park districts for construction and maintenance of regional bicycle, trail, and pedestrian
4.27infrastructure, and for safe routes to school infrastructure; and
4.28 (4) annually evaluate and award grants to cities for planning activities related to
4.29land use and transportation linkages, streetcar development, or bicycle and pedestrian
4.31 (d) Grants awarded by the committee under paragraph (c), clauses (3) and (4), are
4.32not subject to approval by the board. Annually, the committee shall award grants under
4.33those clauses in a total amount that equals no less than ten percent of the net transit sales
4.35 (e) The committee may award a grant under paragraph (c), clause (3), only if the
4.36project being funded is in compliance with:
5.1 (1) a regional nonmotorized transportation system plan developed by the
5.2Metropolitan Council; or
5.3 (2) a municipal nonmotorized transportation plan, which must provide coordinated
5.4development of transportation facilities located in adjacent communities, including
5.5connections between facilities in each community
5.6 (f) The board may utilize no more than an amount equal to three-fourths of one
5.7percent of the total grant awards under paragraph (c), for ordinary administrative expenses
5.8incurred in carrying out the provisions of this subdivision.
5.9 Subd. 5b. Grant awards; consistency with transportation plans.
award for a transit project located within the metropolitan area, as defined in section
5.11473.121, subdivision 2
, may be funded only after the Metropolitan Council reviews the
project for consistency with the transit portion of the Metropolitan Council policy plan
and one of the following occurs:
(1) the Metropolitan Council finds the project to be consistent;
(2) the Metropolitan Council initially finds the project to be inconsistent, but after a
good faith effort to resolve the inconsistency through negotiations with the joint powers
board, agrees that the grant award may be funded; or
(3) the Metropolitan Council finds the project to be inconsistent, and submits the
consistency issue for final determination to a panel, which determines the project to be
consistent. The panel is composed of a member appointed by the chair of the Metropolitan
Council, a member appointed by the joint powers board, and a member agreed upon by
both the chair and the joint powers board.
(g) Grants must be funded by the proceeds of the taxes imposed under this section,
5.24 bonds, notes, or other obligations issued by the joint powers board under subdivision 7.
5.25 (h) Notwithstanding the provisions of this section except subdivision 6a, of
5.26 the revenue collected under this section, the joint powers board shall allocate to the
5.27 Metropolitan Council, in fiscal years 2012 and 2013, an amount not less than 75 percent of
5.28 the net cost of operations for those transit ways that were receiving metropolitan sales tax
5.29 funds through an operating grant agreement on June 30, 2011.
5.30 (i) The Metropolitan Council shall expend any funds allocated under paragraph (h)
5.31 for the operations of the specified transit ways solely within those counties that are in the
5.32 metropolitan transportation area.
5.33 (j) Nothing in paragraph (h) or (i) prevents grant awards to the Metropolitan Council
5.34 for capital and operating assistance for transit ways and park-and-ride facilities.
Allocation of Grant awards; eligible uses.
(a) The board must allocate
grant awards only for
the following transit purposes transitway development, consisting of
(i) capital improvements to transitways, including, but not limited to, commuter rail
rolling stock, light rail vehicles, and transitway buses;
(ii) capital costs for park-and-ride facilities, as defined in section
subdivision 2; and
(iii) feasibility studies, planning, alternatives analyses, environmental studies,
engineering, property acquisition for transitway purposes, and construction of transitways
6.8 (iv) operating assistance for transitways.
(b) The joint powers board must
to each minimum guarantee
6.10 county in an amount no less than the amount of sales tax revenue collected within that
6.11 county as follows:
6.12 (1) to Scott County and Carver County, 55 percent of the net sales tax proceeds
6.13generated by one-quarter of one percent collected in each county respectively for calendar
6.14years 2015 to 2019; and
6.15 (2) to the Metropolitan Council for development and construction of the Southwest
6.16light rail transit project and the Bottineau Boulevard, Cedar Avenue, Riverview, Robert
6.17Street, Red Rock, Gateway, I-35W South, I-394 Commuter Corridor, and Rush Line
(c) No more than 1.25 percent of the total awards may be annually allocated for
6.20 planning, studies, design, construction, maintenance, and operation of pedestrian programs
6.21 and bicycle programs and pathways.
Subd. 6a. Priority of fund uses.
The joint powers board shall allocate all revenues
from the taxes imposed under this section in conformance with the following priority order:
(1) payment of debt service necessary for the fiscal year on bonds or other
issued prior to January 1, 2011,
under subdivision 7; and
(2) as otherwise authorized under this section.
Subd. 7. Bonds.
(a) The joint powers board or any county, acting under a joint
powers agreement as specified in this section, may, by resolution, authorize, issue, and sell
its bonds, notes, or other obligations for the purpose of funding grants under subdivision
6. The joint powers board or county may also, by resolution, issue bonds to refund the
bonds issued pursuant to this subdivision.
(b) The bonds of the joint powers board must be limited obligations, payable solely
from or secured by taxes levied under this section.
(c) The bonds of any county may be limited obligations, payable solely from or
secured by taxes levied under this section. A county may also pledge its full faith, credit,
and taxing power as additional security for the bonds.
(d) Bonds may be issued in one or more series and sold without an election. The bonds
shall be secured, bear the interest rate or rates or a variable rate, have the rank or priority,
be executed in the manner, be payable in the manner, mature, and be subject to the defaults,
redemptions, repurchases, tender options, or other terms, and shall be sold in such manner
as the joint powers board, the regional railroad authority, or the county may determine.
(e) The joint powers board or any regional railroad authority or any county may
enter into and perform all contracts deemed necessary or desirable by it to issue and secure
the bonds, including an indenture of trust with a trustee within or without the state.
(f) Except as otherwise provided in this subdivision, the bonds must be issued and
sold in the manner provided under chapter 475.
(g) The joint powers board or any regional railroad authority wholly within the
metropolitan transportation area also may authorize, issue, and sell its bonds, notes, or
other obligations for the purposes, and in accordance with the procedures, set forth in
to fund grants as provided in subdivision 6. The bonds of any regional
railroad authority may be limited obligations, payable solely from or secured by taxes
levied under this section. A regional railroad authority may also pledge its taxing powers
as additional security for the bonds.
Allocation Remittance of revenues.
After the deductions allowed in
, subdivision 11, the commissioner of revenue shall remit:
the proceeds of
7.20 the taxes imposed under this section (1) the baseline sales tax proceeds,
on a monthly basis,
as directed by the joint powers board under this section; and (2) remaining proceeds of the
7.22sales and use taxes imposed under this section, as provided under section 297A.9925
Subd. 9. Administration, collection, enforcement.
Except as otherwise provided
in this section, the provisions of section
297A.99, subdivisions 4
and 6 to 12a, govern the
administration, collection, and enforcement of the tax authorized under this section.
Subd. 10. Termination of local option taxes.
(a) The taxes imposed under
7.27 297A.99 , subdivision 1, subdivision 2
by a county that withdraws from the joint powers
agreement pursuant to subdivision 3, clause (3), shall terminate when the county has
satisfied its portion, as defined in the joint powers agreement, of all outstanding bonds or
obligations entered into while the county was a member of the agreement.
(b) If the joint powers agreement under subdivision 3 is terminated, the taxes
297A.99, subdivision 1 , subdivision 2
at the time of the agreement
termination will terminate when all outstanding bonds or obligations are satisfied. The
auditors of the counties in which the taxes are imposed shall see to the administration of
Subd. 11. Report.
The joint powers board shall report annually by February 1 to the
house of representatives and senate chairs and ranking minority members of the legislative
committees having jurisdiction over transportation policy and finance concerning
8.4 (1) board activities and actions;
8.5 (2) bonds authorized or issued under subdivision 7;
Subd. 12. Grant awards to Metropolitan Council.
Any grant award under this
section made to the Metropolitan Council must supplement, and must not supplant,
operating and capital assistance provided by the state.
8.11EFFECTIVE DATE.This section is effective July 1, 2014, for sales and purchases
8.12made after June 30, 2014, except that the imposition of the tax under subdivision 2a is
8.13on the first day of the calendar quarter beginning at least 60 days after the date of final
8.14enactment. This section applies in the counties of Anoka, Carver, Dakota, Hennepin,
8.15Ramsey, Scott, and Washington.
Page 15, delete section 2 and insert:
"Sec. 2. [297A.9925] METROPOLITAN AREA TRANSIT SALES TAX;
8.18ALLOCATION OF JOINT CERTIFICATION FUNDS.
8.19 Subdivision 1. Definitions. For purposes of this section, the following terms have
8.20the meanings given them:
8.21 (1) "board" means the joint powers board established under section 297A.992; and
8.22 (2) "net transit sales tax proceeds" has the meaning given in section 297A.992,
8.24 Subd. 2. Allocation purposes. In the manner specified under subdivision 6, the
8.25net transit sales tax proceeds must be allocated under subdivision 3 by the board and the
8.26Metropolitan Council for all of the following purposes:
8.27 (1) payment of debt service on bonds or other obligations, except for debt service on
8.28bonds or other obligations issued under section 297A.992, subdivision 7;
8.29 (2) Metropolitan Council transit operations;
8.30 (3) 100 percent of the net operating subsidies for transitways and arterial bus rapid
8.32 (4) development and construction of transitways;
8.33 (5) grants awarded by the GEARS committee under section 297A.992, subdivision
9.1 (6) expansion and operation of regular route and commuter bus service provided
9.2by metro transit and suburban transit providers with expansion of service by an annual
9.3average rate of four percent;
9.4 (7) $500,000 annually for a grant to the Center for Transportation Studies at the
9.5University of Minnesota; and
9.6 (8) following allocations under clauses (1) to (7), as otherwise specified in the joint
9.7certification under subdivision 3.
9.8 Subd. 3. Joint certification. (a) The board and the Metropolitan Council shall
9.9annually develop a joint certification as provided in this subdivision. The joint certification
9.10must include, at a minimum, allocations for the purposes stated in subdivision 2 and must
9.11be separately adopted by the board and by the council no later than August 31 of each year.
9.12 (b) By July 1, 2014, and by March 15 of each subsequent year, the commissioner of
9.13Minnesota Management and Budget shall provide to the board and council an estimate of
9.14the net transit sales tax proceeds for the subsequent calendar year.
9.15 (c) If, on October 1 in any year, the board and the Metropolitan Council have not
9.16reached agreement as to the contents of the joint certification, they shall submit the issue
9.17to a panel for dispute resolution. The panel must be composed of a member appointed by
9.18the chair of the Metropolitan Council, a member appointed by the board, and a member
9.19agreed upon by both the chair and the board. The panel shall mediate discussion of areas
9.20of disagreement and shall issue advisory recommendations.
9.21 (d) If the commissioner does not receive a joint certification by December 1, the
9.22commissioner may not remit the net transit sales tax proceeds except as provided by a
9.23legislatively enacted appropriation.
9.24 (e) The joint certification must specify the use of sales tax proceeds and account for
9.25deposit of the remainder after allocations.
9.26 (f) A joint certification may not exceed the estimated net transit sales tax proceeds.
9.27 (g) By December 15 annually, the board shall electronically submit a copy of any
9.28joint certification to the chairs and ranking minority members of the legislative committees
9.29with jurisdiction over transportation policy and finance.
9.30 Subd. 4. Uses and priorities; Metropolitan Council. The Metropolitan Council
9.31shall use funds remitted to the council under this section in the following priority order:
9.32 (1) continuation of bus and rail transit operations, including but not limited to
9.33operations of providers under section 473.388, and operations and maintenance of all
9.34transitways under revenue operations; and
9.35 (2) transit expansion in accordance with the transit portion of the council's policy
9.36transit plan, including, but not limited to, expansion and upgrades of bus service and
10.1related amenities, including transit provided under section 473.388, development of
10.2arterial bus rapid transit, transitways, and streetcars as appropriate, and maintenance of
10.3affordable transit fares.
10.4 Subd. 5. Uses and priorities; joint powers board. The board shall use all funds
10.5remitted to the board under this section as provided in section 297A.992.
10.6 Subd. 6. Remittance schedule. The commissioner of revenue shall remit the net
10.7transit sales tax proceeds on a monthly basis to a fiscal agent selected by the board and
10.8council. The fiscal agent shall maintain three separate accounts: a council account, a
10.9board account, and an escrow account. Proceeds shall be deposited first into the board and
10.10council accounts based on the amounts determined pursuant to subdivision 3, then into
10.11the escrow account. The rate of deposit for all or any portion of the proceeds into any
10.12account may be modified by mutual agreement of the parties to reflect bond covenants
10.13or cash flow needs. Proceeds deposited into the board and council accounts shall be
10.14transferred to the board and council, respectively, within five business days of receipt.
10.15Unless otherwise directed herein, money held in the escrow account is subject to the joint
10.16certification process under subdivision 3.
10.17EFFECTIVE DATE.This section is effective July 1, 2014, and applies in the
10.18counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.