The bill modifies the allocation of revenue from the regional transportation sales tax, specifically for student transit and replacement services. It amends Minnesota Statutes 2024, section 297A.9915, subdivision 4, to change the allocation percentages, reducing the previous allocation from 83% to 75.882% for certain transit purposes, while introducing a new allocation of 5.281% to the Metropolitan Council for specified purposes and 1.837% to the Board of Regents of the University of Minnesota for student transit services. The effective date for these changes is set for July 1, 2025.

Additionally, the bill amends section 473.4465, subdivision 2, to clarify the use of funds by the Metropolitan Council, ensuring that a portion of the sales tax revenue is allocated for various transit system purposes, including active transportation and improvements to bus services. A new subdivision (2a) is added, specifying that funds allocated for replacement services must be used for financial assistance to the Minnesota Valley Transit Authority, with the stipulation that the council cannot retain any portion of these funds. This section also becomes effective on July 1, 2025.

Statutes affected:
Introduction: 297A.9915, 473.4465