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State of Minnesota
 
 
 
 
 
S.F. No. 898 - Transportation Omnibus Budget Bill (Third Engrossment)
 
Author: Senator Joe Gimse
 
Prepared By: Krista Boyd, Senate Fiscal Analyst (651/296-7681)
 
Date: March 29, 2011



 

Article 1

Transportation Appropriations

 

Section 1 lists the summary of all appropriations by fund.  Total direct appropriations to the Department of Transportation, Metropolitan Council transit, and administration and transportation-related activities of the Department of Public Safety for the 2012-13 biennium are $4.69 billion.

 

Section 2 states that all appropriations in this article are from the trunk highway fund unless another fund is specified. All appropriations for FY 2011 are effective the day following final enactment.

 

Section 3. Department of Transportation.

 

Subdivision 1. Total MnDOT Appropriations.  Contains the total appropriations to the Department of Transportation by fund.

           

Subdivision 2. Multimodal systems. 

(a)   Aeronautics.

(1)   Appropriates $14.3 million from the state airports fund in each of FY12 and FY13 for airport development and assistance.  States that if the appropriation for each year does not exhaust the fund balance, the Commissioner of Management and Budget shall add the remainder to the appropriation, and notify the Legislature.

(2)   Appropriates $6.1 million from the state airports fund in each of FY12 and FY13 for aviation support and services.  $65,000 in each year is for the Civil Air Patrol.

 

(b)   Transit. Appropriates $13.1 million in each of FY12 and FY13 for Greater Minnesota transit.  Of the appropriation, $19,300 in each year is for expenses of the Minnesota Council on Transportation Access.  This appropriation includes a $4 million reduction per year to the base appropriations.  Specifies that the amount in each year used for elderly and disabled transit service under this section must not be less than the amount used in 2011, and that the amount in each year used for rural transit service under this section must not be reduced more than ten percent below the amount in 2011.

 

(c)    Freight. Appropriates $5.2 million in each of FY12 and FY13 for freight purposes.

 

 Subdivision 3. State Roads.

 

(a)  Operations and Maintenance.  Appropriates $257.4 million in each of FY12 and FY13 for operations  and maintenance.

  

(b)  Program Planning and Delivery.  Appropriates $206.9 million in FY12 and $206.7 million in FY13 for state road system investment and planning.  Of these appropriations:

·        $130,000 in each year is for administrative costs of a targeted group business program for state road construction, if such a program is enacted and effective in FYs 2012 and 2013;

·        $266,000 in each year is for grants to metropolitan planning organizations outside the seven-county metro area;

·        $75,000 in each year is for a transportation research contingent account for federally-reimbursable projects; and

·        $600,000 in each year is for transportation studies grants outside the metropolitan area.

  

(c) State Road Construction. Appropriates $881 million in FY 12 and $555 million in FY13 from the trunk highway fund for construction and improvement of trunk highways. Of the appropriation in FY12, up to $100 million may be transferred to the trunk highway economic development account (created in Article 2 of the bill).  Directs commissioner to spend up to 0.5 percent of federal aid on grants for highway construction job training programs.  Allows commissioner to transfer up to $15 million each year to the transportation revolving loan fund.

 

(d) Highway Debt Service.  Appropriates $137.9 million in FY12 and $158.2 million in FY13 from the trunk highway fund for debt services.

 

(e) Electronic Communications.  Appropriates $5.2 million in each of FY12 and FY13 from the trunk highway fund for electronic communications.  An additional $3,000 in each year is appropriated from the general fund to equip and operate the Roosevelt signal tower.

  

Subdivision 4. Local Roads.

(a)    County State Aids.  Appropriates $545.1 million in FY12 and $572.8 million in FY13 from the county state-aid highway fund for distribution to counties.

 

(b)   Municipal State Aids.  Appropriates $145.5 million in FY12 and $153.5 million in FY13 from the municipal state aid street fund for distribution to cities with a population of over 5,000.

 

(c)    State Aid Appropriation Adjustments.  Gives the Commissioner of Management and Budget the authority to increase or reduce the above appropriations, if the balances in the county state-aid or municipal state-aid funds differ from the above appropriations, upon notification to the Legislature of this change.

 

Subdivision 5.  Agency Management.

(a)   Agency Services.  Appropriates $41.97 million in each of FY12 and FY13 from the trunk highway fund, and $25,000 in each year from the state airports fund, for agency services.

 

(b)   Buildings. Appropriates $17.8 million in FY12 and FY13 from the trunk highway fund, and $54,000 in each year from the general fund, for building needs.

 

Subdivision 6.  Transfers.

(a)     Allows the commissioner to transfer unencumbered fund balances among the appropriations from the trunk highway fund and the state airports fund.  Specifies that no transfers may be made from the state road construction or debt service appropriations or between funds.  Such transfers must be reported to the Legislature.

 

(b)     Requires the commissioner to transfer from the flexible highway account in the county state-aid highway fund:

·         $1.0 million in FY12 to the municipal turnback account in the municipal state-aid street fund;

·         $1.9 million in FY12 to the trunk highway fund; and

·         the remainder in each year to the county turnback account in the county state-aid highway fund.

 

The transfer funds are for highway turnback purposes.

 

Subdivision 7.  Use of State Road Construction Appropriations.  Specifies that money appropriated for state road construction for any fiscal year before FY12 is available during FY12 and FY13 provided the money is spent on the project for which the money was originally encumbered during the fiscal year for which it was appropriated.

 

Subdivision 8.  Contingent Appropriations.  Allows the commissioner, with approval by the Governor and written approval by the majority of a group consisting of the Legislative Advisory Commission and ranking minority members of the House and Senate Transportation Finance committees, to transfer all or part of the balance in the trunk highway fund to an appropriation: (1) for trunk highway design, construction, or inspection in order to take advantage of an unanticipated receipt of income or federal advance construction funding; (2) for trunk highway maintenance in order to meet an emergency; or (3) to pay tort or environmental claims. Specifies that any transfer as a result of using federal advance construction funding must include an analysis of the effects on the long-term highway fund balance. Does not authorize commissioner to increase federal advanced construction funding beyond specifically authorized amounts.

 

Subdivision 9.  Use of Trunk Highway Fund.  Specifies that no trunk highway funds may be used to pay personnel costs incurred on behalf of the Office of the Governor.

  

Section 4.  Metropolitan Council.

 

Subdivision 1. Total Met Council Appropriations.  Contains the total appropriation to the Metropolitan Council from the general fund.

           

Subdivision 2. Bus transit.  Appropriates $43.8 million in each of FY12 and FY13 from the general fund for metropolitan bus system operations.  Of this appropriation, $140,000 in each year is for transit service for disabled veterans, and $80,700 in each year is for administrative expenses of the Minnesota Council on Transportation Access.  This appropriation includes a $16 million reduction per year to the base appropriation.  To avoid transit service reductions or route elimination, the council is directed to, in the following order:

·        use the maximum feasible amount of the council's reserves for bus operations in FY12 and FY13;

·        transfer to the transit operating budget a portion of balances and levy revenues from Livable Communities accounts and the Right-of-Way Acquisition Loan Fund in FY 12 and FY 13; and

·        after both stategies have  been deployed, service may be reduced.  Fares may be increased only after service cuts have been made.

 

Subdivision 3.  Rail operations.  Appropriates $5.174 million in each of FY12 and FY13 from the general fund for rail operations. 

 

Section 5.  Department of Public Safety.

 

Subdivision 1. Total Public Safety Appropriations.  Contains the total appropriations to the Department of Public Safety transportation-related programs by fund.

           

Subdivision 2. Administration and Related Services. 

(a)   Office of Communications.  Appropriates $434,000 in each of FY12 and FY13 for the office of communications.

 

(b)   Public Safety Support.  Appropriates $8.2 million in each of FY12 and FY13 for public safety support.  Specifies that $380,000 each year is for payment of public safety survivor benefits; $1.367 million each year is for the public safety officer’s benefit account; and $508,000 each year is for soft body armor reimbursements.

 

(c)    Technology and Support Service.  Appropriates $3.8 million in each of FY12 and FY13 for technical support services.

 

Subdivision 3. State Patrol. 

(a)   Patrolling Highways.   Appropriates $71.5 million in each of FY12 and FY13 for patrolling highways.

 

(b)   Commercial Vehicle Enforcement.  Appropriates $7.8 million in each of FY12 and FY13 for commercial vehicle enforcement. 

 

(c)    Capitol Security. Appropriates $3.1 million in each of FY12 and FY13 from the general fund for capitol security.

 

(d)   Vehicle Crimes Unit.  Appropriates $693,000 from the highway user tax distribution fund in each of FY12 and FY13 for the activities of the vehicle crimes unit.  Specifies that a report on the revenues generated by the unit must be submitted to the Legislature by February 1, 2015.

 

Subdivision 4. Driver and Vehicle Services. 

(a)   Vehicle Services.   Appropriates $27.3 million in each of FY12 and FY13 for vehicle services.

 

(b)   Driver Services.  Appropriates $28.7 million in each of FY12 and FY13 for driver services.

 

Subdivision 5. Traffic Safety.  Appropriates $435,000 in each of FY12 and FY13 from the trunk highway fund for traffic safety.

 

Subdivision 6. Pipeline Safety.  Appropriates $1.4 million in each of FY12 and FY13 for pipeline safety.

 

Subdivision 7.  Use of Trunk Highway Fund.  Specifies that no trunk highway funds may be used to pay personnel costs incurred on behalf of the Office of the Governor.

 

Section 6.  Tort Claims.  Appropriates $600,000 each year from the trunk highway fund to the Commissioner of Management and Budget for tort claims.

 

Section 7.  Appropriation; State Roads.  Reduces the FY11 appropriation to MnDOT from the trunk highway fund for state road construction by $43 million, to reflect reduced federal aid agreements.

 

Article 2

Transportation Development

 

Section 1 cross-references requirements imposed on state agency capital budget requests in section 16 of this article and applies them to the capital budget submitted by state agencies to the Legislature.

 

Section 2 cross-references requirements imposed on state agency capital budget requests in section 16 of this article and applies them to requests for assistance submitted by local units of government to the Legislature.

 

Section 3 creates a trunk highway economic development account in the trunk highway fund, with an annual appropriation to the Commissioner of Transportation.  Money in the account must be divided evenly between the metropolitan district and greater Minnesota, unless there are not enough applicants that meet eligibility and priority requirements to allow for a 50-50 split of the money.  Money in the account must be used for trunk highway projects that will promote economic development, increase employment, and relieve growing traffic congestion.

 

Section 4 changes the period during which actual receipts must be counted as a basis for the commissioner’s estimate of money that will be available to the county state-aid highway fund during the fiscal year.  Current statute requires the commissioner to consider receipts from July 1 through November 30, and this section changes the end date to October 31.

 

Section 5 modifies the eligibility requirement for a town to receive money from the county’s town road account.  Current law specifies that an eligible town must have levied a certain percentage of its taxable market value in the previous year.  This section removes that provision and instead requires an eligible town to have levied at least as much as it received from the town road account in the year prior to the previous year.

 

Section 6 changes the period during which actual receipts must be counted as a basis for the commissioner’s estimate of money that will be available to the municipal state-aid street fund during the fiscal year.  Current statute requires the commissioner to consider receipts from July 1 through November 30, and this section changes the end date to October 31.

 

Section 7 extends the technology surcharge of $1.75 for every vehicle registration renewal to June 30, 2015.  It is currently scheduled to expire on June 30, 2012.

 

Section 8 allows an eligible vehicle owner to obtain one motorcycle disability plate and one set of disability plates for a motor vehicle, truck, or recreational vehicle without the necessity of obtaining the approval of the state Council on Disability.  The section makes other clarifying and conforming changes.

 

Section 9 allows a vehicle owner to add $2 when paying the statutory license plate and sticker fees, for the purpose of public information and education on anatomical gifts.  This section is effective January 1, 2012.

 

Section 10 expands eligibility for Gold Star special license plates to a legal guardian, sibling, or child of a person who has died while serving honorably in active service.  Current law makes these plates available only to a spouse or parent.  Effective date is August 1, 2011.

 

Section 11 increases filing fees by $1.50 for motor vehicle transactions.  The fee for registration renewals is changed from $4.50 to $6, and for other vehicle transactions the fee is changed from $8.50 to $10.00.

 

Section 12 extends the expiration date of the $1.75 technology surcharge from June 30, 2012, to June 30, 2015, for each original and each duplicate certificate of title.

 

Section 13 amends current law that requires prominent display of a disability certificate.  The section requires a motorcycle owner with a disability certificate to secure the certificate to the motorcycle.

 

Section 14 conforms language and directs the commissioner to design disability certificates for a motorcycle that can be readily secured to the motorcycle.

 

Section 15 includes within the current $120 oversize annual permit for commercial boat hauling, the ability to transport waterfront structures, including, but not limited to, portable boat docks and boat lifts.  This section is effective the day after final enactment.

 

Section 16 reduces driver’s license and state identification card fees by $5 and clarifies that a driver’s license agent may collect and retain a $5 fee for issuance of a license or card.  This reflects current practice and does not change the amount paid by an applicant for a driver’s license or identification card.  This section also extends the expiration date of the $1.75 technology surcharge from June 30, 2012, to June 30, 2015, for each driver’s license or identification card and allows an applicant for a driver's license or state identification card to donate $2 for education and public information on anatomical gifts.

 

Section 17, subdivision 1, establishes the anatomical gift account in the special revenue fund, consisting of donations paid with plate fees and license applications.  Money in the account is for grants and administrative expenses.

 

Subdivision 2 directs the Commissioner of Public Safety to make grants to a federally certified Minnesota organ procurement organization or a charitable organization dedicated to advocacy for organ, tissue, and eye donation.  The grant recipient must work toward increasing the number of Minnesotans who are registered organ donors. 

The section is effective January 1, 2012.

 

Section 18 provides that when a state agency or local unit of government requests state funds for a guideway project, it must provide a summary financial plan that includes, among other things, an estimate of annual operation and maintenance costs and a breakdown of committed and proposed funding sources.  The section also adds to reporting requirements for the Commissioner of Transportation, in collaboration with the Metropolitan Council.  The report must now include, for guideway projects, capacity analysis and availability of funds for investment and operation/maintenance.

 

Section 19 extends the expiration date of the driver and vehicle services technology account from June 30, 2012, to June 30, 2015.

 

Section 20 authorizes the Metropolitan Council to make certain transfers in 2012 and 2013 from metropolitan livable communities fund accounts to cover operating deficits for transit, paratransit, light rail, and commuter rail that is assisted by the Council.

 

Section 21 authorizes the Metropolitan Council to make certain transfers in 2012 and 2013 from the right-of-way acquisition loan fund to cover operating deficits for transit, paratransit, light rail, and commuter rail that is assisted by the Council.

 

Section 22 requires the Commissioner of Public Safety to report to legislative Transportation Committees on receipts and expenditures under the anatomical gift account, established under section 17.

  

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