Transit service consolidation in the Twin Cities metropolitan area provided, implementation requirements established, task force established, study required, and reports required.

A bill for an act

relating to transit; providing for certain transit service consolidation in the Twin

Cities metropolitan area; establishing implementation requirements; establishing

a task force; requiring a study; requiring reports; amending Minnesota Statutes

2024, sections 473.385, subdivision 2; 473.388, by adding a subdivision; 473.4485,

by adding a subdivision; proposing coding for new law in Minnesota Statutes,

chapter 473.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

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[473.376] UNIFIED COMPREHENSIVE TRANSIT.

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Subdivision 1.

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Metropolitan Council authority.

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The council is the exclusive operator

for transit service in the metropolitan area, which may include service under an agreement

with the council.

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Subd. 2.

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Local governmental unit authority.

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(a) A local governmental unit located

wholly or in part in the metropolitan area is prohibited from expending money for direct

operation of transit service and related facilities, except under an agreement with the council

as provided in section 473.384 or 473.386.

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(b) A local governmental unit must not enter into an agreement that obligates any

expenditure on or after July 1, 2027, that is otherwise prohibited under paragraph (a).

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Subd. 3.

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Application.

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(a) The requirements under subdivisions 1 and 2, paragraph (a),

apply beginning July 1, 2027.

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(b) The requirements under subdivision 2, paragraph (a), do not apply to money expended

under an agreement first entered into before the effective date of this section.

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(c) The requirements under this section do not apply to the Board of Regents of the

University of Minnesota.

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EFFECTIVE DATE; APPLICATION.

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This section is effective the day following

final enactment. The requirements of this section pertaining to the Metropolitan Council

apply in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

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Sec. 2.

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[473.3762] COMPREHENSIVE TRANSIT SERVICE PERFORMANCE

REPORT.

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Subdivision 1.

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Report required.

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The council must submit a report to the chairs and

ranking minority members of the legislative committees with jurisdiction over transportation

policy and finance on the implementation and performance of unified comprehensive transit

under section 473.376.

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Subd. 2.

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Contents.

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At a minimum, the report under this section must include:

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(1) a description of transit services consolidated or coordinated under section 473.376,

including routes, service hours, and contracted service providers;

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(2) service performance metrics, including (i) service hours, (ii) on-time performance,

and (iii) passengers per in-service hour;

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(3) changes in service levels, coverage, or frequency resulting from consolidation;

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(4) administrative and contracting costs associated with unified operations;

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(5) operating costs and per-passenger subsidies before and after consolidation, by service

type and by route;

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(6) staffing and employment impacts;

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(7) assessment and status of facilities, vehicles, equipment, and real property impacted

by consolidation; and

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(8) recommendations for legislative changes necessary to improve the responsiveness,

efficiency, accountability, or performance of unified comprehensive transit.

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Subd. 3.

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Information.

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Within 60 days of a request, a former recipient of financial

assistance under section 473.388, must provide data and information as requested by the

council that is necessary for the analysis required under this section.

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Subd. 4.

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Report submission.

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The council must submit the first report under this section

by October 15 following the first full calendar year of operation of unified comprehensive

transit. The council must submit each subsequent report in conjunction with the

comprehensive transit finance report under section 473.4485, subdivision 2.

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EFFECTIVE DATE; APPLICATION.

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This section is effective the day following

final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,

Scott, and Washington.

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Sec. 3.

Minnesota Statutes 2024, section 473.385, subdivision 2, is amended to read:

Subd. 2.

Service areas.

The council may provide financial assistance (whether directly

or through another entity) to private, for-profit operators of public transit only for the

following services:

(1) services that are not regular route services;

(2) regular route services provided on June 2, 1989, by a private, for-profit operator

under contract with the former regional transit board or under a certificate of convenience

and necessity issued by the commissioner of transportation;

(3) regular route services outside of the fully developed service area that are not operated

on June 2, 1989, by the former Metropolitan Transit Commission;

(4)
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on or before June 30, 2027,
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regular route services provided under section
473.388
;

(5) regular route services to recipients who, as part of a negotiated cost-sharing

arrangement with the council, pay at least 50 percent of the cost of the service that directly

benefits the recipient as an institution or organization; or

(6) regular route services that will not be operated for a reasonable subsidy by the council.

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EFFECTIVE DATE; APPLICATION.

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This section is effective the day following

final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,

Scott, and Washington.

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Sec. 4.

Minnesota Statutes 2024, section 473.388, is amended by adding a subdivision to

read:

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Subd. 9.

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Expiration.

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The authority and requirements under this section expire on June

30, 2027.

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EFFECTIVE DATE; APPLICATION.

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This section is effective the day following

final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,

Scott, and Washington.

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Sec. 5.

Minnesota Statutes 2024, section 473.4485, is amended by adding a subdivision

to read:

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Subd. 3.

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Legislative report; unified comprehensive transit.

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(a) In the report required

under subdivision 2, the council must include a section that describes the fiscal impacts of

implementation and performance of unified comprehensive transit under section 473.376.

At a minimum, the section must include:

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(1) a summary of services consolidated or coordinated under section 473.376;

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(2) information on operating cost, subsidy per passenger, and passengers per service

hour for services subject to consolidation, including comparisons before and after

implementation as applicable; and

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(3) administrative and contracting costs associated with unified comprehensive transit.

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(b) The requirements under this subdivision apply beginning with the report submitted

following the first full calendar year of operation of unified comprehensive transit under

section 473.376.

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EFFECTIVE DATE; APPLICATION.

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This section is effective the day following

final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,

Scott, and Washington.

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Sec. 6.
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CONSOLIDATED METROPOLITAN AREA TRANSIT

IMPLEMENTATION.
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Subdivision 1.

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Definitions.

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(a) For purposes of this section, the following terms have

the meanings given.

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(b) "Council" means the Metropolitan Council.

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(c) "Implementation plan" means the implementation plan for consolidation of transit

service as provided under this section.

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(d) "Metropolitan area" has the meaning given in Minnesota Statutes, section 473.121,

subdivision 2.

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(e) "Task force" means the Transit Consolidation Task Force established in this section.

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Subd. 2.

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Implementation requirements.

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(a) The council must implement consolidation

of transit into unified comprehensive service operated by the council in conformance with

Minnesota Statutes, section 473.376, and the implementation plan.

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(b) The council must make reasonable efforts to enter into agreements with each private

entity that operates transit for a replacement service program under Minnesota Statutes,

section 473.388. An agreement must provide for continuing substantially similar transit

service for at least one year following initial commencement of consolidated transit.

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Subd. 3.

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Implementation plan.

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(a) In consultation with the task force under this section,

the council must develop an implementation plan for exclusive unified transit service

operation by the council, except for transit service provided by the University of Minnesota.

By February 1, 2027, the council must develop a preliminary draft of the implementation

plan.

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(b) At a minimum, the plan must include:

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(1) identification and analysis of considerations, processes, and actions necessary to

implement transit operations and service consolidation with the council;

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(2) a requirement of transit service coverage continuity that maintains substantially

similar transit service routes and service levels for at least one year following initial

commencement of consolidated transit, which must include regular route and special

transportation service but may exclude routes identified in the highest tier of per-passenger

subsidy under the high-subsidy transit service analysis in Laws 2025, First Special Session

chapter 8, article 2, section 120;

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(3) subject to the requirements in clause (2), an analysis of modifications to transit routes

and service levels offered by replacement service providers under Minnesota Statutes,

section 473.388;

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(4) an implementation schedule in conformance with the requirements under Minnesota

Statutes, sections 473.376 and 473.388, subdivision 9;

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(5) an analysis of fiscal impacts, including operational and administrative costs and

efficiencies;

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(6) an assessment of transit rider impacts;

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(7) an assessment of relevant or impacted agreements, including any contracts,

memorandums of understanding, joint powers agreements, and leases;

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(8) an assessment of transit staffing and employment impacts;

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(9) an assessment of transit facilities, vehicles, equipment, and real property, which must

include analysis of any disposition of assets; and

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(10) a review of any other consequential implementation considerations or expected

outcomes identified by the task force, the council, or a transit provider.

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Subd. 4.

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Task force; establishment.

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The council must convene a Transit Consolidation

Task Force to advise and provide recommendations on the implementation process for

unified transit in the metropolitan area.

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Subd. 5.

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Task force; membership; chair.

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(a) The task force is composed of the following

members:

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(1) the chair of the Metropolitan Council or a designee;

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(2) the commissioner of transportation or a designee;

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(3) two members representing cities participating in the replacement service program

under Minnesota Statutes, section 473.388, appointed by the Suburban Transit Association;

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(4) one member representing a city in the metropolitan area that is not participating in

the replacement service program, appointed by the Association of Metropolitan

Municipalities;

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(5) one member representing a city in the metropolitan area that is not substantially

served by transit, appointed by the Association of Metropolitan Municipalities;

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(6) three members representing counties in the metropolitan area, with at least one

member from a county that contains a city of the first class, appointed by the Association

of Minnesota Counties;

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(7) one member appointed by the Transportation Advisory Board under Minnesota

Statutes, section 473.146; and

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(8) one member appointed by the Transportation Accessibility Advisory Committee

under Minnesota Statutes, section 473.375, subdivision 9a.

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(b) The appointing authorities under paragraph (a) must make the appointments and

designations by August 15, 2026.

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(c) At its first meeting, the task force must elect a chair or cochairs by a majority vote

of those members present and may elect a vice-chair as necessary.

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Subd. 6.

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Task force; meetings.

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(a) The chair of the Metropolitan Council must convene

the first meeting of the task force no later than September 15, 2026.

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(b) The task force must meet at least monthly and as necessary to accomplish the duties

under subdivision 7.

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(c) The task force is subject to the Open Meeting Law under Minnesota Statutes, chapter

13D.

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Subd. 7.

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Task force; duties.

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(a) The task force must:

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(1) assist the council to develop an implementation plan as provided in subdivision 3 to

consolidate transit service in the metropolitan area;

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(2) review and provide recommendations to the council on transit consolidation

implementation activities; and

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(3) provide a draft legislative proposal for changes in law necessary to transit

consolidation implementation, including but not limited to conforming statutory changes

and any repeal of obsolete provisions.

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(b) In assisting with developing the implementation plan, the task force must consult

with affected stakeholders, including but not limited to other local units of government and

transit riders.

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Subd. 8.

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Task force; administration.

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(a) The council must provide administrative and

staff support for the task force.

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(b) Upon request of the task force, the Metropolitan Council, the commissioner of

transportation, and local units of government must provide information and technical

assistance in a timely fashion.

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(c) Compensation, removal, and vacancies for the task force are governed by Minnesota

Statutes, section 15.0575.

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Subd. 9.

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Report.

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By February 1, 2027, the council and task force must jointly submit a

report on transit consolidation to the chairs and ranking minority members of the legislative

committees with jurisdiction over transportation. At a minimum, the report must:

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(1) summarize the activities of the task force, including information on each of the task

force's duties;

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(2) provide the preliminary draft of the implementation plan; and

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(3) identify transit consolidation implementation actions to date.

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Subd. 10.

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Resources.

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Notwithstanding Minnesota Statutes, section 473.388, subdivision

4, the council may expend the amount reasonably necessary to support the task force and

develop the implementation plan using money otherwise allocated under that section.

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Subd. 11.

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Task force; expiration.

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The task force expires on July 1, 2027.

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EFFECTIVE DATE; APPLICATION.

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This section is effective the day following

final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,

Scott, and Washington.

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Sec. 7.
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TRANSIT SERVICE ENHANCEMENT STUDY.
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(a) The Metropolitan Council must perform a study of bus service enhancement options

in the communities served by the replacement service program under Minnesota Statutes,

section 473.388. At a minimum, the study must:

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(1) identify, evaluate, and prioritize corridors for potential additional bus rapid transit,

express bus, or commuter bus service;

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(2) develop initial concepts with mode and route alignment for the highest priority

corridors under clause (1);

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(3) analyze regular route transit and special transportation service levels; and

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(4) recommend projects and service modifications to improve transit service within the

communities.

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(b) By February 1, 2028, the Metropolitan Council must submit a report on the study to

the chairs and ranking minority members of the legislative committees with jurisdiction

over transportation finance and policy and to the Hennepin County Board of Commissioners.

At a minimum, the report must:

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(1) summarize the study; and

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(2) provide information on each of the requirements under paragraph (a), clauses (1) to

(4).

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(c) The council must use existing resources to conduct the study and submit the report

under this section.

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EFFECTIVE DATE; APPLICATION.

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This section is effective the day following

final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,

Scott, and Washington.

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