MN HF3486

Appropriates federal transit funds to the Commissioner of Transportation for disbursement to public transit systems and modifies the commissioner's powers to review applications, execute contracts, and obligate program funds for transit programs.

Establishes funding sources for the public transit participation program from the general fund and greater Minnesota transit account, and requires the commissioner to develop a greater Minnesota transit investment plan with goals of meeting 80 percent of transit service needs by July 1, 2015 and 90 percent by July 1, 2025.

Sets local funding contribution requirements for transit systems based on service classification: 20 percent for urbanized and small urban area service, 15 percent for rural area service, and 15 percent for elderly and disabled service, with the state covering the remainder from state sources.

Creates separate account tracking for state and federal funding sources, requires the commissioner to accept and disburse federal transit funds as an additional funding source, and establishes project selection criteria under United States Code title 49, section 5311.

Requires the commissioner to submit an annual transit report by February 15 detailing public transit services, funding sources, system summaries, volunteer usage, operating and capital costs, and in odd-numbered years, an analysis of transit system needs and monetary funding gaps.