| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to Metropolitan Council; consolidating and modifying certain financial |
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| 3 | 3 | | 1.3 reporting requirements for transportation services; amending Minnesota Statutes |
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| 4 | 4 | | 1.4 2024, sections 473.13, subdivisions 1, 6; 473.386, subdivision 10; 473.412, |
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| 5 | 5 | | 1.5 subdivision 3; repealing Minnesota Statutes 2024, section 473.452. |
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| 6 | 6 | | 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 7 | 7 | | 1.7 Section 1. Minnesota Statutes 2024, section 473.13, subdivision 1, is amended to read: |
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| 8 | 8 | | 1.8 Subdivision 1.Budget.(a) On or before December 20 of each year, the council shall |
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| 9 | 9 | | 1.9adopt a final budget covering its anticipated receipts and disbursements for the ensuing year |
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| 10 | 10 | | 1.10and shall decide upon the total amount necessary to be raised from ad valorem tax levies |
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| 11 | 11 | | 1.11to meet its budget. The budget shall state in detail the expenditures for each program to be |
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| 12 | 12 | | 1.12undertaken, including the expenses for salaries, consultant services, overhead, travel, printing, |
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| 13 | 13 | | 1.13and other items. The budget shall state in detail the capital expenditures of the council for |
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| 14 | 14 | | 1.14the budget year, based on a five-year capital program adopted by the council and transmitted |
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| 15 | 15 | | 1.15to the legislature. After adoption of the budget and no later than five working days after |
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| 16 | 16 | | 1.16December 20, the council shall certify to the auditor of each metropolitan county the share |
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| 17 | 17 | | 1.17of the tax to be levied within that county, which must be an amount bearing the same |
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| 18 | 18 | | 1.18proportion to the total levy agreed on by the council as the net tax capacity of the county |
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| 19 | 19 | | 1.19bears to the net tax capacity of the metropolitan area. The maximum amount of any levy |
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| 20 | 20 | | 1.20made for the purpose of this chapter may not exceed the limits set by the statute authorizing |
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| 21 | 21 | | 1.21the levy. |
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| 22 | 22 | | 1.22 (b) Each even-numbered year the council shall prepare for its transit programs a financial |
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| 23 | 23 | | 1.23plan for the succeeding three calendar years, in half-year segments. The financial plan must |
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| 24 | 24 | | 1.24contain schedules of user charges and any changes in user charges planned or anticipated |
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| 25 | 25 | | 1Section 1. |
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| 26 | 26 | | REVISOR EB/KR 25-0026512/11/24 |
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| 27 | 27 | | State of Minnesota |
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| 28 | 28 | | This Document can be made available |
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| 29 | 29 | | in alternative formats upon request |
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| 30 | 30 | | HOUSE OF REPRESENTATIVES |
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| 31 | 31 | | H. F. No. 2204 |
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| 32 | 32 | | NINETY-FOURTH SESSION |
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| 33 | 33 | | Authored by Rehm03/12/2025 |
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| 34 | 34 | | The bill was read for the first time and referred to the Committee on Transportation Finance and Policy 2.1by the council during the period of the plan. The financial plan must contain a proposed |
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| 35 | 35 | | 2.2request for state financial assistance for the succeeding biennium. |
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| 36 | 36 | | 2.3 (c) (b) In addition, the budget must show for each year: |
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| 37 | 37 | | 2.4 (1) the estimated operating revenues from all sources including funds on hand at the |
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| 38 | 38 | | 2.5beginning of the year, and estimated expenditures for costs of operation, administration, |
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| 39 | 39 | | 2.6maintenance, and debt service; |
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| 40 | 40 | | 2.7 (2) capital improvement funds estimated to be on hand at the beginning of the year and |
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| 41 | 41 | | 2.8estimated to be received during the year from all sources and estimated cost of capital |
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| 42 | 42 | | 2.9improvements to be paid out or expended during the year, all in such detail and form as the |
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| 43 | 43 | | 2.10council may prescribe; and |
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| 44 | 44 | | 2.11 (3) the estimated source and use of pass-through funds. |
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| 45 | 45 | | 2.12 Sec. 2. Minnesota Statutes 2024, section 473.13, subdivision 6, is amended to read: |
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| 46 | 46 | | 2.13 Subd. 6.Transportation financial review.(a) Annually by January 15, the council |
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| 47 | 47 | | 2.14must submit a financial review that details revenue and expenditures for the transportation |
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| 48 | 48 | | 2.15components under the council's budget, as specified in paragraph (c). A financial review |
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| 49 | 49 | | 2.16submitted under this paragraph must provide the information using state fiscal years. |
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| 50 | 50 | | 2.17 (b) Annually by the earlier of the accounting close of a budget year or August 15, the |
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| 51 | 51 | | 2.18council must submit a financial review update that provides the following for the most |
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| 52 | 52 | | 2.19recent completed budget year: actual revenues; expenditures; transfers; reserves; balances; |
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| 53 | 53 | | 2.20and a comparison between the budgeted and actual amounts. A financial review update |
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| 54 | 54 | | 2.21under this paragraph must include the information specified in paragraph (d). |
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| 55 | 55 | | 2.22 (c) At a minimum, a financial review must identify: |
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| 56 | 56 | | 2.23 (1) the actual revenues, expenditures, transfers, reserves, and balances in each of the |
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| 57 | 57 | | 2.24previous four years; |
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| 58 | 58 | | 2.25 (2) budgeted and forecasted revenues, expenditures, transfers, reserves, and balances in |
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| 59 | 59 | | 2.26the current year and each year within the state forecast period; |
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| 60 | 60 | | 2.27 (3) for the most recent completed year, a comparison between the budgeted and actual |
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| 61 | 61 | | 2.28amounts under clause (1); and |
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| 62 | 62 | | 2.29 (4) for the most recent completed year, fund balances for each replacement service |
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| 63 | 63 | | 2.30provider under section 473.388. By December 15 each year, each replacement service |
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| 64 | 64 | | 2.31provider under section 473.388 must report to the council its projected total operating |
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| 65 | 65 | | 2.32expenditures and projected operating reserve fund balance as of the previous December 31. |
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| 66 | 66 | | 2Sec. 2. |
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| 67 | 67 | | REVISOR EB/KR 25-0026512/11/24 3.1 (d) The information under paragraph (c), clauses (1) to (3), must include: |
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| 68 | 68 | | 3.2 (1) a breakdown by each transportation funding source identified by the council, including |
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| 69 | 69 | | 3.3but not limited to legislative appropriations; federal funds; fare collections; property tax; |
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| 70 | 70 | | 3.4and sales tax, including sales tax used for active transportation under section 473.4465, |
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| 71 | 71 | | 3.5subdivision 2, paragraph (a), clause (1); |
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| 72 | 72 | | 3.6 (2) a breakdown by each transportation operating budget category established by the |
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| 73 | 73 | | 3.7council, including but not limited to bus, light rail transit, commuter rail, planning, special |
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| 74 | 74 | | 3.8transportation service under section 473.386, and assistance to replacement service providers |
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| 75 | 75 | | 3.9under section 473.388; and |
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| 76 | 76 | | 3.10 (3) data for operations, capital maintenance, and transit capital. |
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| 77 | 77 | | 3.11 (e) A financial review under paragraph (a) or (b) must provide information or a |
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| 78 | 78 | | 3.12methodology sufficient to establish a conversion between state fiscal years and budget years, |
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| 79 | 79 | | 3.13summarize reserve policies, identify the methodology for cost allocation, and describe |
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| 80 | 80 | | 3.14revenue assumptions and variables affecting the assumptions. |
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| 81 | 81 | | 3.15 (f) The council must submit each financial review to the chairs and ranking minority |
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| 82 | 82 | | 3.16members of the legislative committees and divisions with jurisdiction over transportation |
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| 83 | 83 | | 3.17policy and finance and to the commissioner of management and budget. |
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| 84 | 84 | | 3.18 EFFECTIVE DATE.This section is effective the day following final enactment and |
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| 85 | 85 | | 3.19applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. |
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| 86 | 86 | | 3.20 Sec. 3. Minnesota Statutes 2024, section 473.386, subdivision 10, is amended to read: |
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| 87 | 87 | | 3.21 Subd. 10.Forecasted funding.(a) For purposes of this subdivision, "biennium" and |
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| 88 | 88 | | 3.22"fiscal year" have the meanings given in section 16A.011, subdivisions 6 and 14, respectively. |
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| 89 | 89 | | 3.23 (b) In each February and November forecast of state revenues and expenditures under |
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| 90 | 90 | | 3.24section 16A.103, the commissioner of management and budget must incorporate a state |
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| 91 | 91 | | 3.25obligation from the general fund for the annual net costs to the council to implement the |
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| 92 | 92 | | 3.26special transportation service under this section. Notwithstanding section 16A.11, subdivision |
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| 93 | 93 | | 3.273, the appropriation base in each fiscal year of the upcoming biennium is as determined in |
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| 94 | 94 | | 3.28this subdivision. |
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| 95 | 95 | | 3.29 (c) The commissioner must determine net costs under paragraph (b) as: |
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| 96 | 96 | | 3.30 (1) the amount necessary to: |
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| 97 | 97 | | 3.31 (i) maintain service levels accounting for expected demand, including service area, hours |
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| 98 | 98 | | 3.32of service, ride scheduling requirements, and fares per council policy; |
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| 99 | 99 | | 3Sec. 3. |
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| 100 | 100 | | REVISOR EB/KR 25-0026512/11/24 4.1 (ii) maintain the general existing condition of the special transportation service bus fleet, |
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| 101 | 101 | | 4.2including bus maintenance and replacement; and |
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| 102 | 102 | | 4.3 (iii) meet the requirements of this section; plus |
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| 103 | 103 | | 4.4 (2) the amount of forecast adjustments, as determined by the commissioner of |
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| 104 | 104 | | 4.5management and budget in consultation with the council, necessary to match (i) actual |
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| 105 | 105 | | 4.6special transportation service program costs in the prior fiscal year, and (ii) adjusted program |
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| 106 | 106 | | 4.7costs forecasted for the second year of the current biennium, for a forecast prepared in the |
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| 107 | 107 | | 4.8first year of the biennium; less |
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| 108 | 108 | | 4.9 (3) funds identified for the special transportation service from nonstate sources. |
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| 109 | 109 | | 4.10 (d) In conjunction with each February and November forecast, the council must submit |
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| 110 | 110 | | 4.11a financial review of the special transportation service to the chairs and ranking minority |
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| 111 | 111 | | 4.12members of the legislative committees with jurisdiction over transportation policy and |
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| 112 | 112 | | 4.13finance and to the commissioner of management and budget. At a minimum, the financial |
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| 113 | 113 | | 4.14review must include: |
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| 114 | 114 | | 4.15 (1) a summary of special transportation service sources of funds and expenditures for |
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| 115 | 115 | | 4.16the prior two fiscal years and each fiscal year of the forecast period, which must include: |
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| 116 | 116 | | 4.17 (i) a breakout by expenditures categories; and |
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| 117 | 117 | | 4.18 (ii) information that is sufficient to identify a conversion between state fiscal years and |
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| 118 | 118 | | 4.19the fiscal years of the council; |
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| 119 | 119 | | 4.20 (2) details on cost assumptions used in the forecast; |
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| 120 | 120 | | 4.21 (3) information on ridership and farebox recovery rates for the prior two fiscal years |
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| 121 | 121 | | 4.22and each fiscal year of the forecast period; |
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| 122 | 122 | | 4.23 (4) identification of the amount of appropriations necessary for any forecast adjustments |
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| 123 | 123 | | 4.24as identified under paragraph (c), clause (2); and |
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| 124 | 124 | | 4.25 (5) information as prescribed by the commissioner. |
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| 125 | 125 | | 4.26 Sec. 4. Minnesota Statutes 2024, section 473.412, subdivision 3, is amended to read: |
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| 126 | 126 | | 4.27 Subd. 3.Report required; cleaning standards and expenditures.(a) By October 1, |
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| 127 | 127 | | 4.282024, and every year thereafter, Annually by February 15, the Metropolitan Council must |
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| 128 | 128 | | 4.29report to the chairs and ranking minority members of the legislative committees with |
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| 129 | 129 | | 4.30jurisdiction over transit policy and finance on transit cleanliness and the ridership experience. |
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| 130 | 130 | | 4Sec. 4. |
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| 131 | 131 | | REVISOR EB/KR 25-0026512/11/24 5.1 (b) The report under paragraph (a) must provide information on the council's cleanliness |
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| 132 | 132 | | 5.2standards required under subdivision 2, including whether the council adopted new |
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| 133 | 133 | | 5.3cleanliness standards or revisions to current cleanliness standards. A report prepared under |
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| 134 | 134 | | 5.4this subdivision must include information gathered from the required public feedback on |
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| 135 | 135 | | 5.5cleanliness and rider experience required in subdivision 2, paragraph (b). The council must |
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| 136 | 136 | | 5.6consider and recommend revisions to cleanliness standards based on the collection of public |
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| 137 | 137 | | 5.7feedback and must summarize feedback received by the council in the report. |
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| 138 | 138 | | 5.8 (c) A report submitted under this subdivision must include: |
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| 139 | 139 | | 5.9 (1) the total expenditures for cleaning and repairing transit stations and transit vehicles; |
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| 140 | 140 | | 5.10 (2) the frequency, type, and location of repairs; |
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| 141 | 141 | | 5.11 (3) whether specific transit stations needed a higher proportion of cleaning or repairs |
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| 142 | 142 | | 5.12and detail the council's strategy to resolve identified and persistent concerns at those |
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| 143 | 143 | | 5.13locations; |
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| 144 | 144 | | 5.14 (4) recommendations to address workforce challenges for the implementation and |
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| 145 | 145 | | 5.15maintenance of cleanliness and repair standards adopted by the council, including whether |
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| 146 | 146 | | 5.16the council maintained agreements with third-party services for cleaning and repair; and |
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| 147 | 147 | | 5.17 (5) whether the council has adopted preventative measures against vandalism or graffiti; |
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| 148 | 148 | | 5.18and. |
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| 149 | 149 | | 5.19 (6) any recommendations for additions to the transit rider code of conduct under section |
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| 150 | 150 | | 5.20473.4065 or the transit rider investment program under section 473.4075. |
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| 151 | 151 | | 5.21 Sec. 5. REPEALER. |
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| 152 | 152 | | 5.22 Minnesota Statutes 2024, section 473.452, is repealed. |
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| 153 | 153 | | 5Sec. 5. |
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| 154 | 154 | | REVISOR EB/KR 25-0026512/11/24 473.452 TRANSIT OPERATING RESERVES; REPORT. |
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| 155 | 155 | | (a) By December 15 each year, each replacement service provider under section 473.388 must |
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| 156 | 156 | | report to the council its projected total operating expenses for the current state fiscal year and its |
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| 157 | 157 | | projected operating reserve fund balance as of the previous July 31. |
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| 158 | 158 | | (b) By January 15 each year, the council must submit a report to the chairs and ranking minority |
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| 159 | 159 | | members of the legislative committees with jurisdiction over transportation policy and finance. The |
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| 160 | 160 | | report must include: |
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| 161 | 161 | | (1) the information from each provider received under paragraph (a); and |
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| 162 | 162 | | (2) the council's projected total operating expenses for the current state fiscal year and its |
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| 163 | 163 | | projected operating reserve fund balance as of the previous July 31. |
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| 164 | 164 | | 1R |
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| 165 | 165 | | APPENDIX |
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| 166 | 166 | | Repealed Minnesota Statutes: 25-00265 |
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