1.1    .................... moves to amend H. F. No. 2800 as follows:
1.2Page 5, delete section 4
1.3Page 8, line 16, delete "TRUNK HIGHWAY"
1.4Page 8, line 20, delete "article" and insert "articles IX and"
1.5Page 8, after line 30, insert:

1.6	"Appropriations by Fund
1.7	Trunk Highway		2,181,403,000
1.8	State Transportation		60,000,000"

1.9Page 12, line 9, delete ", but not to the" and insert a period
1.10Page 12, delete lines 10 to 11
1.11Page 15, line 24, delete "$25"
1.12Page 15, line 25, after the period insert "For married couples filing joint returns,
1.13surviving spouses, single filers, and head of household filers, the credit amount is $25. For
1.14married individuals filing separate returns, the credit amount is $12.50."
1.15Page 18, after line 28, insert:
1.16"EFFECTIVE DATE.This section is effective July 1, 2009."
1.17Page 18, delete article 4 and insert:


1.20    Section 1. Minnesota Statutes 2006, section 297A.99, subdivision 1, is amended to
1.21read:
1.22    Subdivision 1. Authorization; scope. (a) A political subdivision of this state may
1.23impose a general sales tax under section 297A.992, under section 297A.993, if permitted
2.1by special law, or if the political subdivision enacted and imposed the tax before the
2.2effective date of section 477A.016 and its predecessor provision.
2.3    (b) This section governs the imposition of a general sales tax by the political
2.4subdivision. The provisions of this section preempt the provisions of any special law:
2.5    (1) enacted before June 2, 1997, or
2.6    (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
2.7provision from this section's rules by reference.
2.8    (c) This section does not apply to or preempt a sales tax on motor vehicles or a
2.9special excise tax on motor vehicles.

2.10    Sec. 2. [297A.992] METROPOLITAN TRANSPORTATION AREA SALES TAX.
2.11    Subdivision 1. Definitions. For purposes of this section, the following terms have
2.12the meanings given them:
2.13    (1) "metropolitan transportation area" means the counties of Anoka, Carver, Dakota,
2.14Hennepin, Ramsey, Scott, or Washington participating in the joint powers agreement
2.15under subdivision 3, and includes any eligible county that declares by resolution of its
2.16county board to be a part of the metropolitan transportation area;
2.17    (2) "eligible county" means a county that has not imposed a transportation sales and
2.18use tax under section 297A.993, and that is adjacent to any county that is part of the
2.19metropolitan transportation area;
2.20    (3) "committee" means the Grant Evaluation and Ranking System (GEARS)
2.21Committee;
2.22    (4) "minimum guarantee county" means any metropolitan county or eligible county
2.23that is participating in the joint powers agreement under subdivision 3, whose proportion
2.24of the annual sales tax revenue under this section collected within that county is less
2.25than or equal to three percent; and
2.26    (5) "population" means the population, as defined in section 477A.011, subdivision
2.273, estimated or established by July 15 of the year prior to the calendar year in which
2.28the representatives will serve on the Grant Evaluation and Ranking System Committee
2.29established under subdivision 5.
2.30    Subd. 2. Authorization; rates. (a) Notwithstanding section 297A.99, subdivisions
2.311, 2, and 3, or 477A.016, or any other law, the boards of the counties acting under a joint
2.32powers agreement as specified in this section may impose by resolution (1) a transportation
2.33sales and use tax within the metropolitan transportation area at a rate of one-half of one
2.34percent on retail sales and uses taxable under this chapter, and (2) an excise tax of $20 per
2.35motor vehicle purchased or acquired from any person engaged in the business of selling
3.1motor vehicles at retail, occurring within the jurisdiction of the taxing authority. The taxes
3.2authorized are to fund transportation improvements as specified in this section, including
3.3debt service on obligations issued to finance such improvements pursuant to subdivision 7.
3.4    (b) After June 30, 2028, the amount of the sales and use tax under paragraph (a) is
3.5one-quarter of one percent.
3.6    (c) The tax imposed under this section is not included in determining if the total tax
3.7on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
3.8chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
3.912, section 87, or in determining a tax that may be imposed under any other limitations.
3.10    Subd. 3. Joint powers agreement. Before imposing the taxes authorized in
3.11subdivision 2, each participating county in the metropolitan transportation area must enter
3.12into a joint powers agreement. The joint powers agreement:
3.13    (1) must form a joint powers board, as specified in subdivision 4;
3.14    (2) must provide a process that allows any eligible county, by resolution of its county
3.15board, to join the joint powers board and impose the taxes authorized in subdivision 2;
3.16    (3) may provide for withdrawal of a participating county before final termination of
3.17the agreement; and
3.18    (4) may provide for a weighted voting system for joint powers board decisions.
3.19    Subd. 4. Joint powers board. (a) The joint powers board must consist of one
3.20or more commissioners of each county that is in the metropolitan transportation area,
3.21appointed by its county board, and the chair of the Metropolitan Council, who must have
3.22voting rights, subject to subdivision 3, clause (4). The joint powers board has the powers
3.23and duties provided in this section and section 471.59.
3.24    (b) The joint powers board may utilize no more than three-fourths of one percent of
3.25the proceeds of the taxes imposed under this section for ordinary administrative expenses
3.26incurred in carrying out the provisions of this section. Any additional administrative
3.27expenses must be paid by the participating counties.
3.28    (c) The joint powers board may establish a technical advisory group that is separate
3.29from the GEARS Committee. The group must consist of representatives of cities, counties,
3.30or public agencies, including the Metropolitan Council. The technical advisory group
3.31must be used solely for technical consultation purposes.
3.32    Subd. 5. Grant application and awards; Grant Evaluation and Ranking System
3.33(GEARS) Committee. (a) The joint powers board shall establish a grant application
3.34process and identify the amount of available funding for grant awards. Grant applications
3.35must be submitted in a form prescribed by the joint powers board. An applicant must
4.1provide, in addition to all other information required by the joint powers board, the
4.2estimated cost of the project, the amount of the grant sought, possible sources of funding
4.3in addition to the grant sought, and identification of any federal funds that will be utilized
4.4if the grant is awarded. A grant application seeking transit capital funding must identify
4.5the source of money necessary to operate the transit improvement.
4.6    (b) The joint powers board shall establish a timeline and procedures for the award of
4.7grants, and may award grants only to the state and political subdivisions. The board shall
4.8define objective criteria for the award of grants, which must include, but not be limited to,
4.9consistency with the most recent version of the transportation policy plan adopted by the
4.10Metropolitan Council under section 473.146. The joint powers board shall maximize the
4.11availability and use of federal funds in projects funded under this section.
4.12    (c) The joint powers board shall establish a GEARS Committee, which must consist
4.13of:
4.14    (1) one county commissioner from each county that is in the metropolitan
4.15transportation area, appointed by its county board;
4.16    (2) one elected city representative from each county that is in the metropolitan
4.17transportation area;
4.18    (3) one additional elected city representative from each county for every additional
4.19400,000 in population, or fraction of 400,000, in the county that is above 400,000 in
4.20population; and
4.21    (4) the chair of the Metropolitan Council Transportation Committee.
4.22    (d) Each city representative must be elected at a meeting of cities in the metropolitan
4.23transportation area, which must be convened for that purpose by the Association of
4.24Metropolitan Municipalities.
4.25    (e) The committee shall evaluate grant applications following objective criteria
4.26established by the joint powers board, and must provide to the joint powers board a
4.27selection list of transportation projects that includes a priority ranking.
4.28    (f) A grant award for a transit project located within the metropolitan area, as defined
4.29in section 473.121, subdivision 2, may be funded only after the Metropolitan Council
4.30reviews the project for consistency with the transit portion of the Metropolitan Council
4.31policy plan and one of the following occurs:
4.32    (1) the Metropolitan Council finds the project to be consistent;
4.33    (2) the Metropolitan Council initially finds the project to be inconsistent, but after a
4.34good faith effort to resolve the inconsistency through negotiations with the joint powers
4.35board, agrees that the grant award may be funded; or
5.1    (3) the Metropolitan Council finds the project to be inconsistent, and submits the
5.2consistency issue for final determination to a panel, which determines the project to be
5.3consistent. The panel is composed of a member appointed by the chair of the Metropolitan
5.4Council, a member appointed by the joint powers board, and a member agreed upon by
5.5both the chair and the joint powers board.
5.6    (g) Grants must be funded by the proceeds of the taxes imposed under this section,
5.7bonds, notes, or other obligations issued by the joint powers board under subdivision 7.
5.8    (h) Notwithstanding the provisions of this subdivision, in fiscal year 2009, of the
5.9initial revenue collected under this section, the joint powers board shall allocate at least
5.10$30,783,000 to the Metropolitan Council for operating assistance for transit.
5.11    Subd. 6. Allocation of grant awards. (a) The board must allocate grant awards
5.12as follows:
5.13    (1) no less than 50 percent for transit, for the following purposes:
5.14    (i) capital improvements to transit ways, including, but not limited to, commuter
5.15rail rolling stock, light rail vehicles, and transit way buses;
5.16    (ii) capital costs for park-and-ride facilities, as defined in section 174.256,
5.17subdivision 2;
5.18    (iii) feasibility studies, planning, alternatives analyses, environmental studies,
5.19engineering, property acquisition for transit way purposes, and construction of transit
5.20ways; and
5.21    (iv) operating assistance for transit ways;
5.22    (2) no less than 25 percent for construction or reconstruction of trunk highways or
5.23local roads of regional significance; and
5.24    (3) 25 percent for (i) any of the purposes specified in clauses (1) and (2), and
5.25(ii) planning, studies, design, construction, maintenance, and operation of pedestrian
5.26programs and bicycle programs and pathways.
5.27    (b) The joint powers board must annually award grants to each minimum guarantee
5.28county in an amount no less than the amount of sales tax revenue collected within that
5.29county.
5.30    (c) No more than five percent of the awards may be annually allocated for the
5.31purposes specified in paragraph (a), clause (3), item (ii).
5.32    Subd. 7. Bonds. (a) The joint powers board or any county, acting under a joint
5.33powers agreement as specified in this section, may, by resolution, authorize, issue, and sell
5.34its bonds, notes, or other obligations for the purpose of funding grants under subdivision
6.16. The joint powers board or county may also, by resolution, issue bonds to refund the
6.2bonds issued pursuant to this subdivision.
6.3    (b) The bonds of the joint powers board must be limited obligations, payable solely
6.4from or secured by taxes levied under this section.
6.5    (c) The bonds of any county may be limited obligations, payable solely from or
6.6secured by taxes levied under this section. A county may also pledge its full faith, credit,
6.7and taxing power as additional security for the bonds.
6.8    (d) Bonds may be issued in one or more series and sold without an election. The
6.9bonds shall be secured, bear the interest rate or rates or a variable rate, have the rank or
6.10priority, be executed in the manner, be payable in the manner, mature, and be subject to
6.11the defaults, redemptions repurchases, tender options, or other terms, and shall be sold
6.12in such manner as the joint powers board, the regional railroad authority, or the county
6.13may determine.
6.14    (e) The joint powers board or any regional railroad authority or any county may
6.15enter into and perform all contracts deemed necessary or desirable by it to issue and secure
6.16the bonds, including an indenture of trust with a trustee within or without the state.
6.17    (f) Except as otherwise provided in this subdivision, the bonds must be issued and
6.18sold in the manner provided under chapter 475.
6.19    (g) The joint powers board or any regional railroad authority wholly within the
6.20metropolitan transportation area also may authorize, issue, and sell its bonds, notes, or
6.21other obligations for the purposes, and in accordance with the procedures, set forth in
6.22section 398A.07 to fund grants as provided in subdivision 6. The bonds of any regional
6.23railroad authority may be limited obligations, payable solely from or secured by taxes
6.24levied under this section. A regional railroad authority may also pledge its taxing powers
6.25as additional security for the bonds.
6.26    Subd. 8. Allocation of revenues. After the deductions allowed in section 297A.99,
6.27subdivision 11, the commissioner of revenue shall remit the proceeds of the taxes imposed
6.28under this section on a quarterly basis, as directed by the joint powers board under this
6.29section.
6.30    Subd. 9. Administration, collection, enforcement. Except as otherwise provided
6.31in this section, the provisions of section 297A.99, subdivisions 4 and 6 to 12a, govern the
6.32administration, collection, and enforcement of the tax authorized under this section.
6.33    Subd. 10. Report. The joint powers board shall report annually by February 1 to the
6.34house of representatives and senate committees having jurisdiction over transportation
6.35policy and finance concerning the revenues received and grants awarded.
7.1    Subd. 11. Grant awards to Metropolitan Council. Any grant award under this
7.2section made to the Metropolitan Council must supplement, and must not supplant,
7.3operating and capital assistance provided by the state.
7.4EFFECTIVE DATE.This section is effective the day following final enactment,
7.5except that subdivision 2 is effective the first day of a calendar quarter beginning at least
7.690 days after the formation of the joint powers board under subdivision 4. This section
7.7expires October 2, 2008, if the sales and use tax under subdivision 2 has not been imposed.

7.8    Sec. 3. [297A.993] GREATER MINNESOTA TRANSPORTATION SALES AND
7.9USE TAX.
7.10    Subdivision 1. Authorization; rates. Notwithstanding section 297A.99,
7.11subdivisions 1, 2, 3, 5, and 13, or 477A.016, or any other law, the board of a county outside
7.12the metropolitan transportation area, as defined under section 297A.992, subdivision 1, or
7.13more than one county outside the metropolitan transportation area acting under a joint
7.14powers agreement, may impose (1) a transportation sales tax at a rate of one-half of one
7.15percent on retail sales and uses taxable under this chapter, and (2) an excise tax of $20 per
7.16motor vehicle purchased or acquired from any person engaged in the business of selling
7.17motor vehicles at retail, occurring within the jurisdiction of the taxing authority. The taxes
7.18imposed under this section are subject to approval by a majority of the voters of the county
7.19or counties at a general election who vote on the question to impose the taxes.
7.20    Subd. 2. Allocation; termination. The proceeds of the taxes must be dedicated
7.21exclusively to payment of the cost of a specific transportation project or improvement.
7.22The transportation project or improvement must be designated by the board of the county,
7.23or more than one county acting under a joint powers agreement. The taxes must terminate
7.24after the project or improvement has been completed.
7.25    Subd. 3. Administration, collection, enforcement. The administration, collection,
7.26and enforcement provisions in section 297A.99, subdivisions 4 and 6 to 12, apply to all
7.27taxes imposed under this section."
7.28Page 29, line 14, delete "and"
7.29Page 29, line 15, after "shoulder lane," insert "high-occupancy vehicle lane, or
7.30high-occupancy toll lane,"
7.31Page 29, delete line 16 and insert "2007, and (3) any other general purpose lane
7.32that adds capacity."
7.33Page 35, line 19, delete everything after "costs" and insert "of a light rail transit or
7.34commuter rail project."
8.1Page 35, delete lines 20 and 21
8.2Page 35, line 23, delete "transit" and insert "light rail transit or commuter rail"
8.3Page 35, line 24, delete ", as defined in subdivision 1"
8.4Page 35, line 25, delete "transit" and insert "light rail transit or commuter rail"
8.5Page 35, after line 27, insert:
8.6"EFFECTIVE DATE.This section is effective the day after the metropolitan
8.7transportation area sales tax is imposed under section 297A.992, subdivision 2."
8.8Correct the totals and the appropriations by fund accordingly.
8.9Renumber the sections in sequence and correct the internal references
8.10Amend the title accordingly