1.1.................... moves to amend H. F. No. 1463 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2006, section 161.04, is amended by adding a
1.4subdivision to read:
1.5    Subd. 5. Highway spending in metropolitan transportation district. In any year
1.6during which taxes authorized in section 297A.992, subdivision 3, are imposed, and
1.7exclusive of the expenditure of these revenues, the percentage of total trunk highway fund
1.8expenditures attributable to projects in the metropolitan transportation area, within the
1.9meaning of section 297A.992, subdivision 1, may not vary more than two percentage
1.10points from the average of the previous five years of trunk highway fund metropolitan
1.11transportation area expenditures.

1.12    Sec. 2. Minnesota Statutes 2006, section 297A.94, is amended to read:
1.13297A.94 DEPOSIT OF REVENUES.
1.14    (a) Except as provided in this section, the commissioner shall deposit the revenues,
1.15including interest and penalties, derived from the taxes imposed by this chapter in the state
1.16treasury and credit them to the general fund.
1.17    (b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
1.18account in the special revenue fund if:
1.19    (1) the taxes are derived from sales and use of property and services purchased for
1.20the construction and operation of an agricultural resource project; and
1.21    (2) the purchase was made on or after the date on which a conditional commitment
1.22was made for a loan guaranty for the project under section 41A.04, subdivision 3.
1.23The commissioner of finance shall certify to the commissioner the date on which the
1.24project received the conditional commitment. The amount deposited in the loan guaranty
1.25account must be reduced by any refunds and by the costs incurred by the Department of
1.26Revenue to administer and enforce the assessment and collection of the taxes.
2.1    (c) The commissioner shall deposit the revenues, including interest and penalties,
2.2derived from the taxes imposed on sales and purchases included in section 297A.61,
2.3subdivision 3 , paragraph (g), clauses (1) and (4), in the state treasury, and credit them
2.4as follows:
2.5    (1) first to the general obligation special tax bond debt service account in each fiscal
2.6year the amount required by section 16A.661, subdivision 3, paragraph (b); and
2.7    (2) after the requirements of clause (1) have been met, the balance to the general
2.8fund.
2.9    (d) The commissioner shall deposit the revenues, including interest and penalties,
2.10collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
2.11general fund. By July 15 of each year the commissioner shall transfer to the highway user
2.12tax distribution fund an amount equal to the excess fees collected under section 297A.64,
2.13subdivision 5 , for the previous calendar year.
2.14    (e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and
2.15for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and
2.16penalties, transmitted to the commissioner under section 297A.65, must be deposited by
2.17the commissioner in the state treasury as follows:
2.18    (1) 50 percent of the receipts must be deposited in the heritage enhancement account
2.19in the game and fish fund, and may be spent only on activities that improve, enhance, or
2.20protect fish and wildlife resources, including conservation, restoration, and enhancement
2.21of land, water, and other natural resources of the state;
2.22    (2) 22.5 percent of the receipts must be deposited in the natural resources fund, and
2.23may be spent only for state parks and trails;
2.24    (3) 22.5 percent of the receipts must be deposited in the natural resources fund, and
2.25may be spent only on metropolitan park and trail grants;
2.26    (4) three percent of the receipts must be deposited in the natural resources fund, and
2.27may be spent only on local trail grants; and
2.28    (5) two percent of the receipts must be deposited in the natural resources fund,
2.29and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and
2.30Conservatory, and the Duluth Zoo.
2.31    (f) The revenue dedicated under paragraph (e) may not be used as a substitute
2.32for traditional sources of funding for the purposes specified, but the dedicated revenue
2.33shall supplement traditional sources of funding for those purposes. Land acquired with
2.34money deposited in the game and fish fund under paragraph (e) must be open to public
2.35hunting and fishing during the open season, except that in aquatic management areas or
2.36on lands where angling easements have been acquired, fishing may be prohibited during
3.1certain times of the year and hunting may be prohibited. At least 87 percent of the money
3.2deposited in the game and fish fund for improvement, enhancement, or protection of fish
3.3and wildlife resources under paragraph (e) must be allocated for field operations.
3.4    (g) The revenues, including interest and penalties, collected under section 297A.992
3.5must be deposited by the commissioner as provided for in that section.

3.6    Sec. 3. [297A.992] LOCAL TRANSPORTATION SALES AND EXCISE TAX.
3.7    Subdivision 1. Definition. For purposes of this section "metropolitan transportation
3.8area" means the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
3.9Washington.
3.10    Subd. 2. Election. The secretary of state, in cooperation with the county auditors of
3.11the metropolitan transportation area, shall conduct a special election in the metropolitan
3.12transportation area at the time of the general election the Tuesday after the first Monday in
3.13November 2008. The following question shall appear on the ballot:
3.14    "Shall an additional tax of one-half of one percent be temporarily imposed on
3.15sales in the metropolitan area to pay for transportation and transit improvements in the
3.16metropolitan area?"
3.17    Subd. 3. Metropolitan transportation area sales tax. (a) Notwithstanding sections
3.18297A.99, subdivisions 1, 2, 3, 5, and 13; 477A.016; or any other law, the Joint Powers
3.19Board described in this subdivision may levy a metropolitan transportation area sales tax
3.20of up to one-half of one percent on retail sales and uses taxable under chapters 297A and
3.21297B occurring within the metropolitan transportation area, if approved by a majority of
3.22the voters in the metropolitan transportation area who vote on the question to impose the
3.23tax at a special election held in the metropolitan transportation area at the time of the
3.24general election described in subdivision 2.
3.25    (b) A metropolitan transportation area fund is created in the state treasury. After the
3.26deductions allowed in section 297A.99, subdivision 11, the commissioner of revenue shall
3.27deposit all revenue from taxes imposed under this section in the fund. Money in the fund
3.28is appropriated to the commissioner of finance. The commissioner of finance shall allocate
3.29money in the fund as directed by resolution of the Joint Powers Board under paragraph (d).
3.30    (c) Before imposing the tax under paragraph (a), counties and cities in the
3.31metropolitan transportation area shall enter into a joint powers agreement to create the
3.32Joint Powers Board to exercise the powers provided in this section. The Joint Powers
3.33board must consist of one elected official to represent each county in the metropolitan
3.34transportation area appointed by each county board, and one elected city official from
3.35each county in the metropolitan transportation area appointed by the Association of
4.1Metropolitan Municipalities. The Joint Powers Board has the powers and duties provided
4.2in this section and in section 471.59. The Joint Powers Board shall maximize the
4.3availability and use of federal funds in projects funded under this section.
4.4    (d) By February 1, 2008, the Joint Powers Board shall report to the chairs of the
4.5house of representatives and senate committees having jurisdiction over transportation
4.6policy and finance. The report must include a list of projects, within the categories
4.7specified in paragraph (e), to be funded with the proceeds of the local transportation sales
4.8and excise tax through fiscal year 2010.
4.9(e) By May 1 of each year, the Joint Powers Board shall, by resolution, direct the
4.10commissioner of finance to allocate revenue in the metropolitan transportation area fund
4.11for the next fiscal year according to the provisions of the resolution. Revenue must first
4.12be allocated to the Joint Powers Board to reimburse its expenses in carrying out the
4.13requirements of this section, then to the appropriate public entities to fund the projects
4.14identified under paragraph (d). Remaining funds must be allocated to public entities for
4.15eligible projects, based on grants awarded under paragraph (f). Grants may be awarded for
4.16the following eligible projects:
4.17    (1) to the commissioner of transportation for metropolitan transportation area
4.18highway projects included in the commissioner's current ten-year highway work plan;
4.19    (2) to the Metropolitan Council for implementation of the public transit components
4.20of the council's 2030 transportation policy plan, and for other public transit operations and
4.21capital improvements provided or assisted by the council in counties in the metropolitan
4.22transportation area;
4.23    (3) to counties or cities in the metropolitan transportation area for construction,
4.24maintenance, and improvement of local roads; and
4.25    (4) to counties or cities in the metropolitan transportation area for operation of and
4.26capital assistance to public transit systems that the county, or one or more cities in the
4.27county, owns, operates, or contracts for.
4.28    (f) The Joint Powers Board shall, by resolution, establish a grant application and
4.29award process, which defines objective criteria for the award of grants, and awards grants
4.30only to public entities. Grants must be funded by the proceeds of the sales tax, or bonds or
4.31other obligations issued by the Joint Powers Board. Grant awards must be made annually
4.32by May 1 and funded in the next fiscal year.
4.33    (g) Meetings of the Joint Powers Board are subject to the Minnesota Open Meeting
4.34Law.
4.35    Subd. 4. Tax in counties outside metropolitan transportation area.
4.36    Notwithstanding sections 297A.99, subdivisions 1, 2, 3, 5, and 13; 477A.016; or any other
5.1law, the boards of two or more counties outside the metropolitan transportation area
5.2acting under a joint powers agreement may impose a transportation sales tax at a rate of
5.3one-half of one percent on retail sales and uses taxable under chapters 297A and 297B
5.4occurring within the jurisdiction of the taxing authority subject to approval by the voters
5.5of the county or counties at a general election. The proceeds of the tax must be used
5.6exclusively for regional transportation projects.
5.7    Subd. 5. Administration, collection, enforcement. The administration, collection,
5.8and enforcement provisions in section 297A.99, subdivisions 4 and 6 to 12, apply to all
5.9taxes imposed under this section.
5.10    Subd. 6. Report. In each year during the period of imposition of the taxes
5.11authorized in subdivision 3, the Joint Powers Board shall report by February 1 to the house
5.12of representatives and senate committees having jurisdiction over transportation policy
5.13and finance concerning the revenues received from the metropolitan transportation area
5.14sales tax and the allocations and expenditures of that money.

5.15    Sec. 4. APPROPRIATION.
5.16    $....... is appropriated from the general fund to the secretary of state for the costs of
5.17the special election described in section 3, subdivision 3.

5.18    Sec. 5. EFFECTIVE DATE.
5.19    Section 3, subdivision 3, paragraph (d), is effective July 1, 2007. Sections 1, 2,
5.20and the remainder of 3 are effective upon approval of the sales tax by the metropolitan
5.21transportation area voters in the 2008 election, and, if approved, the taxes authorized in
5.22section 3, subdivision 3, are effective as to sales made on and after January 1, 2009.
5.23This act expires January 1, 2029."