1.1    .................... moves to amend H. F. No. 3800, the delete everything amendment
1.2(A08-1343), as follows:
1.3Page 48, after line 14, insert:


1.6    Section 1. Minnesota Statutes 2006, section 161.081, subdivision 3, as amended by
1.7Laws 2008, chapter 152, article 6, section 4, is amended to read:
1.8    Subd. 3. Flexible highway account; turnback other accounts. (a) The flexible
1.9highway account is created in the state treasury. Money in The account commissioner
1.10shall be used:
1.11    (1) annually transfer in fiscal years 2009 and 2010 and 2011, 100 percent of the
1.12excess sum, as calculated in paragraph (i), and in fiscal years 2011 2012 and thereafter,
1.1350 75 percent of the excess sum, as calculated in paragraph (i), for counties in the
1.14metropolitan area, as defined in section 473.121, subdivision 4, but for the purposes of the
1.15calculation cities of the first class will be excluded in the metropolitan area; and to the
1.16metropolitan routes of regional significance account under subdivision 4; and
1.17    (2) of expend the amount available in the flexible highway account less the amount,
1.18after the transfer under clause (1), as determined by the commissioner under this section
1.19subdivision, for:
1.20    (i) restoration of former trunk highways that have reverted to counties or to statutory
1.21or home rule charter cities, or for trunk highways that will be restored and subsequently
1.22turned back by agreement between the commissioner and the local road authority;
1.23    (ii) safety improvements on county highways, municipal highways, streets, or town
1.24roads; and
1.25    (iii) statewide routes of regional significance.
2.1    (b) For purposes of this subdivision, "restoration" means the level of effort required
2.2to improve the route that will be turned back to an acceptable condition as determined
2.3by agreement made between the commissioner and the county or city before the route
2.4is turned back.
2.5    (c) The commissioner shall review the need for funds to restore highways that have
2.6been or will be turned back. The commissioner shall determine, on a biennial basis, the
2.7percentage of funds in the flexible highway account to be distributed to each district,
2.8and within each district the percentage to be used for each of the purposes specified in
2.9paragraph (a), clause (2). Money in the account may be used for safety improvements
2.10and routes of regional significance only after money is set aside to restore the identified
2.11turnbacks. The commissioner shall make these determinations only after meeting and
2.12holding discussions with committees selected by the statewide associations of both county
2.13commissioners and municipal officials. The commissioner shall, to the extent feasible,
2.14annually allocate 50 percent of the funds in the flexible highway account under paragraph
2.15(a), clause (2), to the department's metropolitan district, and 50 percent to districts in
2.16greater Minnesota.
2.17    (d) Money that will be used for the restoration of trunk highways that have reverted
2.18or that will revert to cities must be deposited in the municipal turnback account, which is
2.19created in the state treasury.
2.20    (e) Money that will be used for the restoration of trunk highways that have reverted
2.21or that will revert to counties must be deposited in the county turnback account, which is
2.22created in the state treasury.
2.23    (f) Money that will be used for safety improvements must be deposited in the
2.24highway safety improvement account, which is created in the state treasury to be used
2.25as grants to statutory or home rule charter cities, towns, and counties to assist in paying
2.26the costs of constructing or reconstructing city streets, county highways, or town roads
2.27to reduce crashes, deaths, injuries, and property damage.
2.28    (g) Money that will be used for statewide routes of regional significance must be
2.29deposited in the statewide routes of regional significance account, which is created in
2.30the state treasury, and used as grants to statutory or home rule charter cities, towns, and
2.31counties to assist in paying the costs of constructing or reconstructing city streets, county
2.32highways, or town roads with statewide or regional significance that have not been fully
2.33funded through other state, federal, or local funding sources.
2.34    (h) As part of each biennial budget submission to the legislature, the commissioner
2.35shall describe how the money in the flexible highway account will be apportioned among
2.36the county turnback account, the municipal turnback account, the trunk highway fund for
3.1routes turned back to local governments by agreement, the highway safety improvement
3.2account, and the statewide routes of regional significance account.
3.3    (i) The excess sum is calculated as the sum of revenue within the flexible highway
3.4account:
3.5    (1) attributed to that portion of the gasoline excise tax rate under section 296A.07,
3.6subdivision 3 , in excess of 20 cents per gallon, and to that portion of the excise tax rates
3.7in excess of the energy equivalent of a gasoline excise tax rate of 20 cents per gallon
3.8for E85 and M85 under section 296A.07, subdivision 3, and special fuel under section
3.9296A.08, subdivision 2;
3.10    (2) attributed to a change in the passenger vehicle registration tax under section
3.11168.013, imposed on or after July 1, 2008, that exceeds (i) the amount collected in fiscal
3.12year 2008, multiplied by (ii) the annual average United States Consumer Price Index for
3.13the calendar year previous to the current calendar year, divided by the annual average
3.14United States Consumer Price Index for calendar year 2007; and
3.15    (3) attributed to that portion of the motor vehicle sales tax revenue in excess of the
3.16percentage allocated to the flexible highway account in fiscal year 2007.
3.17    (j) For purposes of this subdivision, the United States Consumer Price Index
3.18identified in paragraph (i), clause (2), is for all urban consumers, United States city
3.19average, as determined by the United States Department of Labor.
3.20EFFECTIVE DATE.Paragraph (h) is effective January 1, 2009, and the remainder
3.21of this section is effective July 1, 2009.

3.22    Sec. 2. Minnesota Statutes 2006, section 161.081, is amended by adding a subdivision
3.23to read:
3.24    Subd. 4. Metropolitan routes of regional significance account. (a) For purposes
3.25of this subdivision, the following terms have the meanings given them:
3.26    (1) "metropolitan area" has the meaning given in section 473.121, subdivision 4; and
3.27    (2) "population" has the meaning given in section 477A.011, subdivision 3, except
3.28that it excludes the three most populous cities in the metropolitan area.
3.29    (b) The metropolitan routes of regional significance account is created in the state
3.30treasury. Funds in the account are for allocation to metropolitan counties to assist in
3.31paying the costs of construction, reconstruction, or maintenance of county highways with
3.32statewide or regional significance that have not been fully funded through other state,
3.33federal, or local funding sources.
3.34    (c) The commissioner shall allocate funds in the account to counties in the
3.35metropolitan area so that each county receives an amount proportional to the percentage
4.1that its population, estimated or established by July 15 of the year prior to the current
4.2calendar year, bears to the total population of the counties receiving funds under this
4.3subdivision.
4.4EFFECTIVE DATE.This section is effective July 1, 2009.

4.5    Sec. 3. Minnesota Statutes 2006, section 161.081, is amended by adding a subdivision
4.6to read:
4.7    Subd. 5. Excess sum. (a) For purposes of this section, "excess sum" means an
4.8amount calculated by the commissioner as the sum of revenue within the flexible highway
4.9account:
4.10    (1) attributed to that portion of the gasoline excise tax rate under section 296A.07,
4.11subdivision 3 , in excess of 20 cents per gallon, and to that portion of the excise tax rates
4.12in excess of the energy equivalent of a gasoline excise tax rate of 20 cents per gallon
4.13for E85 and M85 under section 296A.07, subdivision 3, and special fuel under section
4.14296A.08, subdivision 2;
4.15    (2) attributed to a change in the passenger vehicle registration tax under section
4.16168.013, imposed on or after July 1, 2008, that exceeds (i) the amount collected in fiscal
4.17year 2008, multiplied by (ii) the annual average United States Consumer Price Index for
4.18the calendar year previous to the current calendar year, divided by the annual average
4.19United States Consumer Price Index for calendar year 2007; and
4.20    (3) attributed to that portion of the motor vehicle sales tax revenue in excess of the
4.21percentage allocated to the flexible highway account in fiscal year 2007.
4.22    (b) For purposes of this subdivision, the United States Consumer Price Index
4.23identified in paragraph (a), clause (2), is for all urban consumers, United States city
4.24average, as determined by the United States Department of Labor.
4.25EFFECTIVE DATE.This section is effective July 1, 2009.

4.26    Sec. 4. Minnesota Statutes 2006, section 168.013, subdivision 1a, as amended by Laws
4.272008, chapter 152, article 3, section 1, is amended to read:
4.28    Subd. 1a. Passenger automobile; hearse. (a) On passenger automobiles as defined
4.29in section 168.011, subdivision 7, and hearses, except as otherwise provided, the tax shall
4.30be $10 plus an additional tax equal to 1.25 percent of the base value.
4.31    (b) Subject to the classification provisions herein, "base value" means the
4.32manufacturer's suggested retail price of the vehicle including destination charge using list
4.33price information published by the manufacturer or determined by the registrar if no
5.1suggested retail price exists, and shall not include the cost of each accessory or item of
5.2optional equipment separately added to the vehicle and the suggested retail price.
5.3    (c) If the manufacturer's list price information contains a single vehicle identification
5.4number followed by various descriptions and suggested retail prices, the registrar shall
5.5select from those listings only the lowest price for determining base value.
5.6    (d) If unable to determine the base value because the vehicle is specially constructed,
5.7or for any other reason, the registrar may establish such value upon the cost price to the
5.8purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales
5.9or use tax or any local sales or other local tax.
5.10    (e) The registrar shall classify every vehicle in its proper base value class as follows:

5.11		FROM		TO
5.12		$ 0		$ 199.99
5.13 5.14		$ 200		$ 399.99

5.15and thereafter a series of classes successively set in brackets having a spread of $200
5.16consisting of such number of classes as will permit classification of all vehicles.
5.17    (f) The base value for purposes of this section shall be the middle point between
5.18the extremes of its class.
5.19    (g) The registrar shall establish the base value, when new, of every passenger
5.20automobile and hearse registered prior to the effective date of Extra Session Laws 1971,
5.21chapter 31, using list price information published by the manufacturer or any nationally
5.22recognized firm or association compiling such data for the automotive industry. If unable
5.23to ascertain the base value of any registered vehicle in the foregoing manner, the registrar
5.24may use any other available source or method. The registrar shall calculate tax using base
5.25value information available to dealers and deputy registrars at the time the application for
5.26registration is submitted. The tax on all previously registered vehicles shall be computed
5.27upon the base value thus determined taking into account the depreciation provisions of
5.28paragraph (h).
5.29    (h) The annual additional tax must be computed upon a percentage of the base value
5.30as follows: during the first year of vehicle life, upon 100 percent of the base value; for the
5.31second year, 90 percent of such value; for the third year, 80 percent of such value; for the
5.32fourth year, 70 percent of such value; for the fifth year, 60 percent of such value; for the
5.33sixth year, 50 percent of such value; for the seventh year, 40 percent of such value; for the
5.34eighth year, 30 percent of such value; for the ninth year, 20 percent of such value; for the
5.35tenth year, ten percent of such value; for the 11th and each succeeding year, the sum of $25.
5.36    (i) In no event shall the annual additional tax be less than $25.
6.1    For any vehicle previously registered in Minnesota, the annual additional tax due
6.2under this subdivision must not exceed the smallest amount of annual additional tax
6.3previously paid or due on the vehicle.
6.4EFFECTIVE DATE.This section is effective the day following final enactment,
6.5and applies to any annual additional tax for a registration period that starts on or after
6.6September 1, 2008, through August 31, 2009.
6.7EFFECTIVE DATE.This section is effective the day following final enactment.

6.8    Sec. 5. Minnesota Statutes 2006, section 297A.815, subdivision 3, as added by Laws
6.92008, chapter 152, article 3, section 8, is amended to read:
6.10    Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this
6.11subdivision, "net revenue" means an amount equal to:
6.12    (1) the revenues, including interest and penalties, collected under section 297A.815,
6.13during the fiscal year; less
6.14    (2) the estimated reduction in individual income tax receipts and the estimated
6.15amount of refunds paid out under section 290.06, subdivision 34, for the fiscal year.
6.16    (b) On or before June 30 of each fiscal year, the commissioner of revenue shall
6.17estimate the amount of the revenues and subtraction under paragraph (a) for the current
6.18fiscal year.
6.19    (c) On or after July 1 of the subsequent fiscal year, the commissioner of finance shall
6.20transfer the net revenue as estimated in paragraph (b) from the general fund, as follows:
6.21    (1) 50 percent to the greater Minnesota transit account; and
6.22    (2) 50 25 percent to the metropolitan area transit account; and
6.23    (3) 25 percent to the county state-aid highway fund. Notwithstanding any other law
6.24to the contrary, the commissioner of transportation shall allocate the funds transferred
6.25under this clause to the counties in the metropolitan area, as defined in section 473.121,
6.26subdivision 4 , excluding the counties of Hennepin and Ramsey, so that each county shall
6.27receive of such amount the percentage that its population, as defined in section 477A.011,
6.28subdivision 3 , estimated or established by July 15 of the year prior to the current calendar
6.29year, bears to the total population of the counties receiving funds under this clause
6.30metropolitan routes of regional significance account under section 161.081, subdivision 4.
6.31    (d) For fiscal years 2010 and 2011, the amount under paragraph (a), clause (1), must
6.32be calculated using the following percentages of the total revenues:
6.33    (1) for fiscal year 2010, 83.75 percent; and
6.34    (2) for fiscal year 2011, 93.75 percent.
7.1EFFECTIVE DATE.This section is effective July 1, 2009.

7.2    Sec. 6. Minnesota Statutes , section 398A.10, as added by Laws 2008, chapter 152,
7.3article 6, section 7, is amended to read:
7.4[398A.10] TRANSIT FUNDING.
7.5    Subdivision 1. Capital costs. A county regional railroad authority may not
7.6contribute more than ten percent of the capital costs of a light rail transit or commuter rail
7.7project. This subdivision does not apply to a light rail transit project for which a county
7.8regional railroad authority commits to providing an amount greater than ten percent of
7.9the capital costs, if the commitment (1) is made before October 2, 2008, (2) is made as
7.10part of an application for federal funds, and (3) is adjusted by the county regional railroad
7.11authority to meet the requirements of this subdivision as part of the next scheduled federal
7.12funding application for the project.
7.13    Subd. 2. Operating and maintenance costs. A county regional railroad authority
7.14may not contribute any funds to pay the operating and maintenance costs for a light rail
7.15transit or commuter rail project. If a county regional railroad authority is contributing
7.16funds for operating and maintenance costs on a light rail transit or commuter rail project
7.17on the date of the enactment of this act, the authority may continue to contribute funds
7.18for these purposes until January 1, 2009.
7.19    Subd. 3. Application. This section only applies if a county has imposed the
7.20metropolitan transportation sales and use tax under section 297A.992.
7.21EFFECTIVE DATE.This section is effective the day after the metropolitan
7.22transportation area sales tax is imposed under Minnesota Statutes, section 297A.992,
7.23subdivision 2 .
7.24EFFECTIVE DATE.This section is effective July 1, 2008.

7.25    Sec. 7. Minnesota Statutes ..., section 296A.083, as added by Laws 2008, chapter
7.26152, article 2, section 1, is amended to read:
7.27    Section 1. [296A.083] DEBT SERVICE SURCHARGE.
7.28    Subdivision 1. Definitions. For purposes of this section, the following terms have
7.29the meanings given them:
7.30    (1) "debt service" means the amount of principal and interest in each fiscal year
7.31attributable to the trunk highway bonds authorized in this article; and
7.32    (2) "surcharge" means the rate imposed under this section on gasoline taxed under
7.33section 296A.07, subdivision 3, clause (3), and includes a proportional rate for each type
8.1of fuel taxed under sections 296A.07, subdivision 3, clauses (1) and (2), and 296A.08,
8.2subdivision 2 .
8.3    Subd. 2. Debt service forecast. On June 30, 2008, and each March 1 thereafter, the
8.4commissioner of finance shall report to the commissioner of revenue on trunk highway
8.5debt service. The report must include the annual amount of revenue from the surcharge
8.6previously deposited in the trunk highway fund, and a forecast of the total and annual
8.7amounts necessary to pay the remaining debt service.
8.8    Subd. 3. Surcharge rate. (a) By July 16, 2008, and each April 1 thereafter, the
8.9commissioner of revenue shall calculate and publish a surcharge as provided in paragraphs
8.10(b) and (c). The surcharge is imposed from August 1, 2008, through June 30, 2009, and
8.11each new surcharge thereafter is imposed the following July 1 through June 30.
8.12    (b) For fiscal years 2009 through 2012, the commissioner shall set the surcharge as
8.13specified in the following surcharge rate schedule.

8.14	Surcharge Rate Schedule
8.15 8.16	Fiscal Year	Rate (in cents per gallon)
8.17	2009	0.5
8.18	2010	2.1
8.19	2011	2.5
8.20	2012	3.0

8.21    (c) For fiscal year 2013 and thereafter, the commissioner shall set the surcharge at
8.22the lesser of (1) 3.5 cents, or (2) an amount calculated so that the total proceeds from the
8.23surcharge deposited in the trunk highway fund from fiscal year 2009 to the upcoming
8.24fiscal year equals the total amount of debt service from fiscal years 2009 to 2039, and the
8.25surcharge is rounded to the nearest 0.1 cent.
8.26    Subd. 4. Surcharge administration. The audit, assessment, appeal, collection,
8.27enforcement, penalty, interest, refund and administrative provisions that apply to the taxes
8.28in chapter 296A apply to the surcharge imposed by this section. The surcharge is not to be
8.29used in calculating the credit in section 296A.16, subdivision 5.
8.30EFFECTIVE DATE.This section is effective the day following final enactment.
8.31EFFECTIVE DATE.This section is effective the day following final enactment.

8.32    Sec. 8. Laws 2008, chapter 152, article 2, section 3, subdivision 2, is amended to read:

8.33

Subd. 2. State Road Construction

1,717,694,000

8.34(a) For the actual construction,
8.35reconstruction, and improvement of
9.1trunk highways, including design-build
9.2contracts and consultant usage to support
9.3these activities. This includes the cost
9.4of actual payments to landowners for
9.5lands acquired for highway rights-of-way,
9.6payments to lessees, interest subsidies, and
9.7relocation expenses. This appropriation is in
9.8the following amounts:
9.9(1) $417,694,000 in fiscal year 2009, and the
9.10commissioner may use up to $71,008,000 of
9.11this amount for program delivery;
9.12(2) $500,000,000 in fiscal year 2010, and the
9.13commissioner may use up to $85,000,000 of
9.14this amount for program delivery; and
9.15(3) $100,000,000 in each fiscal year for
9.16fiscal years 2011 through 2018, and the
9.17commissioner may use up to $17,000,000 of
9.18the amount in each fiscal year for program
9.19delivery.
9.20(b) Of the amount in fiscal year 2009,
9.21$40,000,000 is for construction of
9.22interchanges and intersections involving
9.23a trunk highway, where the interchange
9.24or intersection will promote economic
9.25development, increase employment, relieve
9.26growing traffic congestion, and promote
9.27traffic safety. The amount under this
9.28paragraph must be allocated 50 percent to
9.29the department's metropolitan district, and 50
9.30percent to districts in greater Minnesota.
9.31(c) Of the amount in fiscal years 2009
9.32and 2010, the commissioner shall use
9.33$300,000,000 each year for predesign,
9.34design, preliminary engineering,
9.35right-of-way acquisition, reasonable
10.1approaches, construction, reconstruction,
10.2and maintenance of bridges in the trunk
10.3highway bridge improvement program under
10.4Minnesota Statutes, section 165.14.
10.5(d) Of the total appropriation under this
10.6subdivision, the commissioner shall use at
10.7least $50,000,000 for accelerating transit
10.8facility improvements on or adjacent to trunk
10.9highways.
10.10(e) Of the total appropriation under this
10.11subdivision provided to the Department
10.12of Transportation's district 7, excluding
10.13the amount allocated to district 7 under
10.14paragraph (c), the commissioner shall first
10.15expend funds as necessary to accelerate all
10.16projects that (1) are on a trunk highway
10.17classified as a medium priority interregional
10.18corridor, (2) are included in the district's
10.19long-range transportation plan, but are
10.20not included in the state transportation
10.21improvement program or the ten-year
10.22highway work plan, and (3) expand capacity
10.23from a two-lane highway to a freeway
10.24or expressway, as defined in Minnesota
10.25Statutes, section 160.02, subdivision 19. The
10.26commissioner shall establish as the highest
10.27priority under this paragraph any project that
10.28currently has a final environmental impact
10.29statement completed. The requirement
10.30under this paragraph does not change the
10.31department's funding allocation process
10.32or the amount otherwise allocated to each
10.33transportation district. "