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2nd Unofficial Engrossment - 89th Legislature (2015 - 2016) Posted on 04/24/2015 05:27pm

KEY: stricken = removed, old language.
underscored = added, new language.
1.1A bill for an act
1.2relating to transportation; capital investment; taxes; amending provisions
1.3governing transportation finance; establishing gross receipts motor fuels tax;
1.4amending vehicle registration tax and metropolitan area transit sales tax;
1.5amending distribution of highway user fund and state-aid funding; incorporating
1.6efficiencies; modifying various fees and charges; modifying fiscal policies;
1.7requiring reports; authorizing sale and issuance of trunk highway bonds;
1.8appropriating money;amending Minnesota Statutes 2014, sections 16E.15,
1.9subdivision 2; 115A.908; 161.081, subdivision 1; 161.082, subdivision 1, by
1.10adding a subdivision; 161.083; 161.088, subdivision 5; 161.20, by adding a
1.11subdivision; 161.231; 161.46, subdivision 2; 162.07, subdivision 1a; 168.002,
1.12subdivision 24; 168.012, subdivision 1c; 168.013, subdivisions 1a, 1d, 1g, 8;
1.13168.053, subdivision 1; 168.12, subdivisions 1, 2, 2b, 2c, 2d, 2e, 2g, 5; 168.121,
1.14subdivision 1; 168.123, subdivision 1; 168.1235, subdivision 1; 168.1255,
1.15subdivision 1; 168.128, subdivision 2; 168.1291, subdivision 4; 168.1295,
1.16subdivision 1; 168.1296, subdivision 1; 168.1297, subdivision 1; 168.1298,
1.17subdivision 1; 168.1299, subdivision 1; 168.27, subdivision 22; 168.31, by
1.18adding a subdivision; 168.33, subdivisions 2, 7; 168.62, subdivision 3; 168A.05,
1.19by adding a subdivision; 168A.07, by adding a subdivision; 168D.06; 169.011,
1.20by adding a subdivision; 169.798, subdivision 4; 171.01, subdivisions 37, 49a, by
1.21adding a subdivision; 171.06, subdivisions 1, 2, 3; 171.07, subdivision 1; 174.42,
1.22by adding a subdivision; 174.50, by adding a subdivision; 222.50, subdivision 7;
1.23296A.061; 296A.11; 296A.12; 296A.16; 296A.18, subdivisions 2, 3, 4, 5, 6, 7;
1.24297A.815, subdivision 3; 297A.992, subdivisions 1, 4, 5, 6; 297B.03; 297B.09,
1.25subdivision 1; 299A.465, subdivisions 2, 5, by adding subdivisions; 299D.09;
1.26360.024; 360.305, subdivision 4; 473.167; Laws 2014, chapter 312, article 11,
1.27section 33; proposing coding for new law in Minnesota Statutes, chapters 161;
1.28168; 169; 174; 219; 296A; 297A; 299F; repealing Minnesota Statutes 2014,
1.29sections 161.081, subdivision 3; 473.4051, subdivision 2.
1.30BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.31ARTICLE 1
1.32TRANSPORTATION AND PUBLIC SAFETY APPROPRIATIONS

1.33
Section 1. SUMMARY OF APPROPRIATIONS.
2.1The amounts shown in this section summarize direct appropriations, by fund, made
2.2in this article.
2.3
2016
2017
Total
2.4
General
$
113,399,000
$
102,079,000
$
215,478,000
2.5
Airports
25,109,000
25,109,000
50,218,000
2.6
C.S.A.H.
771,437,000
850,253,000
1,621,690,000
2.7
M.S.A.S.
210,467,000
237,802,000
448,269,000
2.8
Special Revenue
121,709,000
122,336,000
244,045,000
2.9
H.U.T.D.
2,426,000
2,435,000
4,861,000
2.10
Trunk Highway
1,868,014,000
2,000,895,000
3,868,909,000
2.11
Total
$
3,112,561,000
$
3,340,909,000
$
6,453,470,000

2.12
2.13
Sec. 2. TRANSPORTATION
APPROPRIATIONS.
2.14The sums shown in the columns marked
2.15"Appropriations" are appropriated to the
2.16agencies and for the purposes specified in
2.17this article. The appropriations are from
2.18the trunk highway fund, or another named
2.19fund, and are available for the fiscal years
2.20indicated for each purpose. The figures
2.21"2016" and "2017" used in this article mean
2.22that the appropriations listed under them are
2.23available for the fiscal year ending June 30,
2.242016, or June 30, 2017, respectively. "The
2.25first year" is fiscal year 2016. "The second
2.26year" is fiscal year 2017. "The biennium" is
2.27fiscal years 2016 and 2017.
2.28
APPROPRIATIONS
2.29
Available for the Year
2.30
Ending June 30
2.31
2016
2017

2.32
2.33
Sec. 3. DEPARTMENT OF
TRANSPORTATION.
2.34
Subdivision 1.Total Appropriation
$
2,887,659,000
$
3,103,578,000
2.35
Appropriations by Fund
2.36
2016
2017
2.37
General
47,973,000
27,153,000
3.1
Airports
25,109,000
25,109,000
3.2
C.S.A.H.
771,167,000
850,253,000
3.3
M.S.A.S.
210,467,000
237,802,000
3.4
Special Revenue
60,145,000
60,002,000
3.5
Trunk Highway
1,772,798,000
1,903,259,000
3.6The amounts that may be spent for each
3.7purpose are specified in the following
3.8subdivisions.
3.9
Subd. 2.Multimodal Systems
3.10(a) Aeronautics
3.11
(1) Airport Development and Assistance
19,798,000
19,798,000
3.12This appropriation is from the state
3.13airports fund and must be spent according
3.14to Minnesota Statutes, section 360.305,
3.15subdivision 4
.
3.16The base appropriation for fiscal years 2018
3.17and 2019 is $14,298,000 for each year.
3.18Notwithstanding Minnesota Statutes, section
3.1916A.28, subdivision 6, this appropriation is
3.20available for five years after appropriation.
3.21If the appropriation for either year is
3.22insufficient, the appropriation for the other
3.23year is available for it.
3.24
(2) Aviation Support and Services
6,661,000
6,661,000
3.25
Appropriations by Fund
3.26
Airports
5,311,000
5,311,000
3.27
Trunk Highway
1,350,000
1,350,000
3.28$80,000 in each year is from the state airports
3.29fund for the Civil Air Patrol.
3.30
(3) Airplane Purchase
5,000,000
-0-
3.31This appropriation is from the general fund
3.32to be used in conjunction with proceeds
3.33of the sale of an existing airplane for the
3.34replacement of one state airplane.
4.1
(b) Transit
27,543,000
27,567,000
4.2
Appropriations by Fund
4.3
General
23,745,000
23,745,000
4.4
Trunk Highway
798,000
822,000
4.5
Special Revenue
3,000,000
3,000,000
4.6$100,000 in each year is from the general
4.7fund for the administrative expenses of the
4.8Minnesota Council on Transportation Access
4.9under Minnesota Statutes, section 174.285.
4.10$500,000 in each year is from the general fund
4.11for noninfrastructure activities in the safe
4.12routes to school program under Minnesota
4.13Statutes, section 174.40, subdivision 7a.
4.14The base appropriation from the general fund
4.15for fiscal years 2018 and 2019 is $21,245,000
4.16in each year.
4.17$3,000,000 in each year is from the greater
4.18Minnesota active transportation account in
4.19the special revenue fund under Minnesota
4.20Statutes, section 174.38. This is a onetime
4.21appropriation.
4.22
(c) Passenger Rail
500,000
500,000
4.23This appropriation is from the general
4.24fund for passenger rail system planning,
4.25alternatives analysis, environmental analysis,
4.26design, and preliminary engineering under
4.27Minnesota Statutes, sections 174.632 to
4.28174.636.
4.29
(d) Freight
5,443,000
5,452,000
4.30
Appropriations by Fund
4.31
General
256,000
256,000
4.32
Trunk Highway
5,044,000
5,196,000
4.33
Special Revenue
143,000
-0-
5.1$143,000 in the first year is from the rail
5.2service improvement account in the special
5.3revenue fund for a grant to the Minnesota
5.4Commercial Railway for emergency
5.5temporary repairs to approximately 6.5 miles
5.6of railroad track described as that portion of
5.7the Minnesota Commercial main running
5.8lead, between M&D Junction in White Bear
5.9Lake and the end of track in Hugo.
5.10
Subd. 3.State Roads
5.11
(a) Operations and Maintenance
284,030,000
297,185,000
5.12
(b) Program Planning and Delivery
249,214,000
263,625,000
5.13$130,000 in each year is available for
5.14administrative costs of the targeted group
5.15business program.
5.16$300,000 in fiscal year 2016 is for grants
5.17to implement enhanced organizational
5.18effectiveness and innovation review under
5.19article 8, section 29.
5.20$266,000 in each year is available for grants
5.21to metropolitan planning organizations
5.22outside the seven-county metropolitan area.
5.23$75,000 in each year is available for a
5.24transportation research contingent account
5.25to finance research projects that are
5.26reimbursable from the federal government or
5.27from other sources. If the appropriation for
5.28either year is insufficient, the appropriation
5.29for the other year is available for it.
5.30$900,000 in each year is available for
5.31grants for transportation studies outside
5.32the metropolitan area to identify critical
5.33concerns, problems, and issues. These
5.34grants are available: (1) to regional
6.1development commissions; (2) in regions
6.2where no regional development commission
6.3is functioning, to joint powers boards
6.4established under agreement of two or
6.5more political subdivisions in the region to
6.6exercise the planning functions of a regional
6.7development commission; and (3) in regions
6.8where no regional development commission
6.9or joint powers board is functioning, to the
6.10department's district office for that region.
6.11$1,000,000 in each year is available
6.12for management of contaminated and
6.13regulated material on property owned by
6.14the Department of Transportation, including
6.15mitigation of property conveyances, facility
6.16acquisition or expansion, chemical release at
6.17maintenance facilities, and spills on the trunk
6.18highway system where there is no known
6.19responsible party. If the appropriation for
6.20either year is insufficient, the appropriation
6.21for the other year is available for it.
6.22The base appropriation for program planning
6.23and delivery for fiscal years 2018 and 2019
6.24is $262,625,000 in each year.
6.25
(c) State Road Construction
967,480,000
1,025,905,000
6.26It is estimated that these appropriations will
6.27be funded as follows:
6.28
Appropriations by Fund
6.29
6.30
Federal Highway
Aid
455,970,000
462,570,000
6.31
Highway User Taxes
511,510,000
563,335,000
6.32The commissioner of transportation shall
6.33notify the chairs and ranking minority
6.34members of the legislative committees with
6.35jurisdiction over transportation finance of
7.1any significant events that should cause these
7.2estimates to change.
7.3This appropriation is for the actual
7.4construction, reconstruction, and
7.5improvement of trunk highways, including
7.6design-build contracts and consultant usage
7.7to support these activities. This includes the
7.8cost of actual payment to landowners for
7.9lands acquired for highway rights-of-way,
7.10payment to lessees, interest subsidies, and
7.11relocation expenses.
7.12The base appropriation for state road
7.13construction for fiscal years 2018 and 2019
7.14is $970,905,000 in each year.
7.15$10,000,000 in each year is for the
7.16transportation economic development
7.17program under Minnesota Statutes, section
7.18174.12.
7.19$5,000,000 in the first year is for the
7.20construction of noise barriers on trunk
7.21highways.
7.22The commissioner shall transfer $2,000,000
7.23in the first year to the state right-of-way
7.24acquisition loan account under Minnesota
7.25Statutes, section 161.225.
7.26The commissioner shall transfer $50,000,000
7.27in the first year and $55,000,000 in the
7.28second year to the county turnback account
7.29under Minnesota Statutes, section 161.082.
7.30The commissioner may expend up to one-half
7.31of one percent of the federal appropriations
7.32under this paragraph as grants to opportunity
7.33industrialization centers and other nonprofit
8.1job training centers for job training programs
8.2related to highway construction.
8.3The commissioner may transfer up to
8.4$15,000,000 each year to the transportation
8.5revolving loan fund.
8.6The commissioner may receive money
8.7covering other shares of the cost of
8.8partnership projects. These receipts are
8.9appropriated to the commissioner for these
8.10projects.
8.11The commissioner may expend an amount as
8.12necessary for land acquisition on corridors
8.13of commerce projects funded under article
8.142, section 3.
8.15
(d) Highway Debt Service
197,519,000
240,307,000
8.16$188,019,000 the first year and $230,807,000
8.17in the second year are for transfer to the state
8.18bond fund. If this appropriation is insufficient
8.19to make all transfers required in the year
8.20for which it is made, the commissioner of
8.21management and budget shall notify the
8.22senate Committee on Finance and the house
8.23of representatives Committee on Ways and
8.24Means of the amount of the deficiency and
8.25shall then transfer that amount under the
8.26statutory open appropriation. Any excess
8.27appropriation cancels to the trunk highway
8.28fund.
8.29
(e) Electronic Communications
5,326,000
5,486,000
8.30
Appropriations by Fund
8.31
General
3,000
3,000
8.32
Trunk Highway
5,323,000
5,483,000
9.1The general fund appropriation is to equip
9.2and operate the Roosevelt signal tower for
9.3Lake of the Woods weather broadcasting.
9.4
Subd. 4.Local Roads
9.5
(a) County State-Aid Roads
771,167,000
850,253,000
9.6This appropriation is from the county
9.7state-aid highway fund under Minnesota
9.8Statutes, section 161.081, and chapter 162.
9.9Notwithstanding Minnesota Statutes, section
9.1016A.28, subdivision 6, this appropriation is
9.11available for six years after appropriation.
9.12If the commissioner of transportation
9.13determines that a balance remains in the
9.14county state-aid highway fund following
9.15the appropriations and transfers made in
9.16this subdivision, and that the appropriations
9.17made are insufficient for advancing county
9.18state-aid highway projects, an amount
9.19necessary to advance the projects, not to
9.20exceed the balance in the county state-aid
9.21highway fund, is appropriated in each year
9.22to the commissioner. Within two weeks
9.23of a determination under this contingent
9.24appropriation, the commissioner of
9.25transportation shall notify the commissioner
9.26of management and budget and the chairs
9.27and ranking minority members of the
9.28legislative committees with jurisdiction over
9.29transportation finance concerning funds
9.30appropriated.
9.31
(b) Municipal State-Aid Roads
210,467,000
237,802,000
9.32This appropriation is from the municipal
9.33state-aid street fund under Minnesota
9.34Statutes, chapter 162. Notwithstanding
10.1Minnesota Statutes, section 16A.28,
10.2subdivision 6, this appropriation is available
10.3for six years after appropriation.
10.4If the commissioner of transportation
10.5determines that a balance remains in the
10.6municipal state-aid street fund following
10.7the appropriations made in this subdivision,
10.8and that the appropriations made are
10.9insufficient for advancing municipal state-aid
10.10street projects, an amount necessary to
10.11advance the projects, not to exceed the
10.12balance in the municipal state-aid street
10.13fund, is appropriated in each year to
10.14the commissioner. Within two weeks
10.15of a determination under this contingent
10.16appropriation, the commissioner of
10.17transportation shall notify the commissioner
10.18of management and budget and the chairs
10.19and ranking minority members of the
10.20legislative committees with jurisdiction over
10.21transportation finance concerning funds
10.22appropriated.
10.23
(c) City Streets and Bridges
57,002,000
57,002,000
10.24$28,501,000 in each year is appropriated from
10.25the small city streets and bridges account in
10.26the special revenue fund under Minnesota
10.27Statutes, section 174.54, subdivision 1.
10.28$28,501,000 in each year is appropriated from
10.29the larger city streets and bridges account in
10.30the special revenue fund under Minnesota
10.31Statutes, section 174.54, subdivision 2.
10.32
10.33
(d) Local Bridge Replacement and
Rehabilitation
10,750,000
-0-
10.34This appropriation is from the general fund
10.35to match federal money and to replace
11.1or rehabilitate local deficient bridges as
11.2provided in Minnesota Statutes, section
11.3174.50. To the extent practicable, the
11.4commissioner shall expend the funds as
11.5provided under Minnesota Statutes, section
11.6174.50, subdivision 6b or 6c. This is a
11.7onetime appropriation.
11.8
11.9
(e) Pedestrian, Bicycle, and Safe Routes to
Schools
2,500,000
2,500,000
11.10This appropriation is from the general fund
11.11for infrastructure activities in the safe routes
11.12to school program under Minnesota Statutes,
11.13section 174.40, and grants for other bicycle
11.14and pedestrian infrastructure that encourages
11.15active transportation choices.
11.16
(f) Highways on Tribal Lands
5,000,000
-0-
11.17This appropriation is from the general fund
11.18for the purposes of maintenance, design, or
11.19construction of highways on tribal lands.
11.20
Subd. 5.Agency Management
11.21
(a) Agency Services
42,722,000
43,519,000
11.22
(b) Buildings
18,772,000
19,321,000
11.23
Appropriations by Fund
11.24
General
54,000
54,000
11.25
Trunk Highway
18,718,000
19,267,000
11.26Any money appropriated to the commissioner
11.27of transportation for building construction
11.28for any fiscal year before 2016 is available
11.29to the commissioner of transportation
11.30during the biennium to the extent that the
11.31commissioner spends the money on the
11.32building construction projects for which the
11.33money was originally encumbered during the
11.34fiscal year for which it was appropriated.
12.1If the appropriation for either year is
12.2insufficient, the appropriation for the other
12.3year is available for it.
12.4
(c) Tort Claims
600,000
600,000
12.5If the appropriation for either year is
12.6insufficient, the appropriation for the other
12.7year is available for it.
12.8
12.9
Subd. 6.Previous State Road Construction
Appropriations
12.10Any money appropriated to the commissioner
12.11of transportation for state road construction
12.12for any fiscal year before the first year is
12.13available to the commissioner during the
12.14biennium to the extent that the commissioner
12.15spends the money on the state road
12.16construction project for which the money
12.17was originally encumbered during the fiscal
12.18year for which it was appropriated. The
12.19commissioner of transportation shall report to
12.20the commissioner of management and budget
12.21by August 1, 2015, and August 1, 2016, on
12.22a form the commissioner of management
12.23and budget provides, on expenditures made
12.24during the previous fiscal year that are
12.25authorized by this subdivision.
12.26
Subd. 7.Contingent Appropriation
12.27The commissioner of transportation, with
12.28the approval of the governor and the
12.29written approval of at least five members
12.30of a group consisting of the members of
12.31the Legislative Advisory Commission
12.32under Minnesota Statutes, section 3.30,
12.33and the ranking minority members of the
12.34legislative committees with jurisdiction over
12.35transportation finance, may transfer all or
13.1part of the unappropriated balance in the
13.2trunk highway fund to an appropriation:
13.3(1) for trunk highway design, construction,
13.4or inspection in order to take advantage of
13.5an unanticipated receipt of income to the
13.6trunk highway fund or to take advantage
13.7of federal advanced construction funding;
13.8(2) for trunk highway maintenance in order
13.9to meet an emergency; or (3) to pay tort
13.10or environmental claims. Nothing in this
13.11subdivision authorizes the commissioner
13.12to increase the use of federal advanced
13.13construction funding beyond amounts
13.14specifically authorized. Any transfer as
13.15a result of the use of federal advanced
13.16construction funding must include an
13.17analysis of the effects on the long-term
13.18trunk highway fund balance. The amount
13.19transferred is appropriated for the purpose of
13.20the account to which it is transferred.

13.21
Sec. 4. METROPOLITAN COUNCIL
$
52,249,000
$
61,630,000
13.22This appropriation is from the general fund
13.23for transit system operations under Minnesota
13.24Statutes, sections 473.371 to 473.449.
13.25The base appropriation is $68,276,000 for
13.26fiscal year 2018 and $74,141,000 for fiscal
13.27year 2019.

13.28
Sec. 5. DEPARTMENT OF PUBLIC SAFETY
13.29
Subdivision 1.Total Appropriation
$
172,741,000
$
176,071,000
13.30
Appropriations by Fund
13.31
2016
2017
13.32
General
13,169,000
13,288,000
13.33
Special Revenue
61,564,000
62,334,000
13.34
H.U.T.D.
2,192,000
2,213,000
13.35
Trunk Highway
95,816,000
98,236,000
14.1The amounts that may be spent for each
14.2purpose are specified in the following
14.3subdivisions.
14.4
Subd. 2.Administration and Related Services
14.5
(a) Office of Communications
517,000
530,000
14.6
Appropriations by Fund
14.7
General
113,000
115,000
14.8
Trunk Highway
404,000
415,000
14.9
(b) Public Safety Support
8,715,000
8,804,000
14.10
Appropriations by Fund
14.11
General
3,662,000
3,667,000
14.12
H.U.T.D.
1,366,000
1,366,000
14.13
Trunk Highway
3,687,000
3,771,000
14.14$130,000 in each year is from the general
14.15fund for the additional position of labor
14.16relations manager.
14.17$380,000 in each year is from the general
14.18fund for payment of public safety officer
14.19survivor benefits under Minnesota Statutes,
14.20section 299A.44. If the appropriation for
14.21either year is insufficient, the appropriation
14.22for the other year is available for it.
14.23$1,367,000 in each year is from the general
14.24fund to be deposited in the public safety
14.25officer's benefit account. This money
14.26is available for reimbursements under
14.27Minnesota Statutes, section 299A.465.
14.28$600,000 in each year is from the general
14.29fund and $100,000 in each year is from the
14.30trunk highway fund for soft body armor
14.31reimbursements under Minnesota Statutes,
14.32section 299A.38.
14.33
(c) Technology and Support Service
3,685,000
3,685,000
15.1
Appropriations by Fund
15.2
General
1,322,000
1,322,000
15.3
H.U.T.D.
19,000
19,000
15.4
Trunk Highway
2,344,000
2,344,000
15.5
Subd. 3.State Patrol
15.6
(a) Patrolling Highways
81,756,000
83,857,000
15.7
Appropriations by Fund
15.8
General
37,000
37,000
15.9
H.U.T.D.
807,000
828,000
15.10
Trunk Highway
80,912,000
82,992,000
15.11$707,000 in the first year and $720,000 in the
15.12second year are from the highway user tax
15.13distribution fund for the Vehicle Crimes Unit,
15.14to investigate: (1) registration tax and motor
15.15vehicle sales tax liabilities from individuals
15.16and businesses that currently do not pay
15.17all taxes owed; and (2) illegal or improper
15.18activity related to sale, transfer, titling, and
15.19registration of motor vehicles.
15.20$500,000 is appropriated from the trunk
15.21highway fund in fiscal year 2016 to assist in
15.22the purchase of a single engine aircraft for
15.23the State Patrol.
15.24
(b) Commercial Vehicle Enforcement
8,023,000
8,257,000
15.25
(c) Capitol Security
8,035,000
8,147,000
15.26This appropriation is from the general fund.
15.27The commissioner may not: (1) spend
15.28any money from the trunk highway fund
15.29for capitol security; or (2) permanently
15.30transfer any state trooper from the patrolling
15.31highways activity to capitol security.
15.32The commissioner may not transfer any
15.33money appropriated to the commissioner
16.1under this section: (1) to capitol security; or
16.2(2) from capitol security.
16.3
Subd. 4.Driver and Vehicle Services
16.4
(a) Vehicle Services
30,027,000
30,291,000
16.5This appropriation is from the vehicle
16.6services operating account in the special
16.7revenue fund.
16.8Of these appropriations, $59,000 in each year
16.9is for the creation of a Data Services Unit
16.10within the Division of Driver and Vehicle
16.11Services.
16.12
(b) Driver Services
30,166,000
30,655,000
16.13This appropriation is from the driver services
16.14operating account in the special revenue fund.
16.15$31,000 in each year is for the creation of a
16.16Data Services Unit within the Division of
16.17Driver and Vehicle Services.
16.18$74,000 in the first year and $124,000 in
16.19the second year are for staff costs related to
16.20insurance attestation requirements. This is a
16.21onetime appropriation.
16.22$15,000 in the first year is for costs related to
16.23creating a driving privilege license.
16.24
Subd. 5.Traffic Safety
446,000
457,000
16.25The commissioner of public safety shall
16.26spend 50 percent of the money available to
16.27the state under United States Code, title 23,
16.28section 164, and the remaining 50 percent
16.29must be transferred to the commissioner
16.30of transportation for hazard elimination
16.31activities under United States Code, title 23,
16.32section 152.
16.33
Subd. 6.Pipeline Safety
1,371,000
1,388,000
17.1This appropriation is from the pipeline safety
17.2account in the special revenue fund.

17.3
Sec. 6. DEPARTMENT OF REVENUE
$
234,000
$
222,000
17.4$234,000 in fiscal year 2016 and $222,000
17.5in fiscal year 2017 are appropriated from
17.6the highway user tax distribution fund to
17.7the commissioner of revenue for tax system
17.8management costs.

17.9
17.10
17.11
Sec. 7. BOARD OF WATER AND SOIL
RESOURCES AND DEPARTMENT OF
NATURAL RESOURCES
$
270,000
$
17.12(a) $135,000 to the Board of Water and Soil
17.13Resources and $135,000 to the commissioner
17.14of natural resources are appropriated in fiscal
17.15year 2016 from the state aid administrative
17.16account in the county state-aid highway fund
17.17to study the feasibility of the state assuming
17.18administration of the section 404 permit
17.19program of the federal Clean Water Act. The
17.20United States Army Corps of Engineers,
17.21St. Paul District; and the United States
17.22Environmental Protection Agency shall be
17.23consulted with during the development of
17.24the study. These appropriations are available
17.25until June 30, 2017. The study shall identify:
17.26(1) the federal requirements for state
17.27assumption of the 404 program;
17.28(2) the potential extent of assumption,
17.29including those waters that would remain
17.30under the jurisdiction of the Army Corps
17.31of Engineers due to the prohibition of 404
17.32assumption in certain waters as defined in
17.33section 404(g)(1) of the federal Clean Water
17.34Act;
18.1(3) differences in waters regulated under
18.2Minnesota laws compared to waters of the
18.3United States, including complications and
18.4potential solutions to address the current
18.5uncertainties relating to determining waters
18.6of the United States;
18.7(4) measures to ensure the protection of
18.8aquatic resources consistent with the Clean
18.9Water Act, Wetland Conservation Act, and
18.10the public waters program administered by
18.11the Department of Natural Resources;
18.12(5) changes to existing state law, including
18.13changes to current implementation structure
18.14and processes, that would need to occur
18.15to allow for state assumption of the 404
18.16program;
18.17(6) new agency responsibilities for
18.18implementing federal requirements
18.19and procedures that would become the
18.20obligation of the state under assumption,
18.21including the staff and resources needed for
18.22implementation;
18.23(7) the estimated costs and savings that would
18.24accrue to affected units of government;
18.25(8) the effect on application review and
18.26approval processes and time frames;
18.27(9) alternatives to assumption that would also
18.28achieve the goals of regulatory simplification,
18.29efficiency, and reduced permitting times;
18.30(10) options for financing any additional
18.31costs of implementation; and
18.32(11) other information as determined by the
18.33board and commissioner.
19.1(b) The board and commissioner shall
19.2involve stakeholders in the development of a
19.3plan of the study required under this section.
19.4(c) By January 15, 2017, the board and
19.5commissioner must report the study to the
19.6legislative policy and finance committees and
19.7divisions with jurisdiction over environment
19.8and natural resources.

19.9
Sec. 8. TRANSFER
$
3,000,000
$
3,000,000
19.10$3,000,000 in fiscal year 2016 and $3,000,000
19.11in fiscal year 2017 are transferred from the
19.12general fund to the greater Minnesota active
19.13transportation account in the special revenue
19.14fund under Minnesota Statutes, section
19.15174.38. These are onetime transfers.

19.16    Sec. 9. APPROPRIATION.
19.17(a) $8,000 in fiscal year 2016 and $8,000 in fiscal year 2017 are appropriated from
19.18the general fund to the Legislative Coordinating Commission for expenses related to the
19.19road-user charge working group.
19.20    (b) $165,000 in fiscal year 2016 and $95,000 in fiscal year 2017 are appropriated
19.21from the general fund to the commissioner of transportation for administrative expenses
19.22related to the road-user charge working group, including the costs of consultants.

19.23ARTICLE 2
19.24TRUNK HIGHWAY BONDING

19.25    Section 1. BOND SALE AUTHORIZATION.
19.26To provide the money appropriated in this article from the bond proceeds account in
19.27the trunk highway fund, the commissioner of management and budget shall sell and issue
19.28bonds of the state in an amount up to $1,001,000,000 in the manner, upon the terms, and
19.29with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the
19.30Minnesota Constitution, article XIV, section 11, at the times and in the amounts requested
19.31by the commissioner of transportation. The proceeds of the bonds, except accrued interest
20.1and any premium received from the sale of the bonds, must be deposited in the bond
20.2proceeds account in the trunk highway fund.

20.3
Sec. 2. BOND APPROPRIATIONS.
20.4The sums shown in the column under "Appropriations" are appropriated from the
20.5bond proceeds account in the trunk highway fund to the state agencies or officials indicated,
20.6to be spent for public purposes. Appropriations of bond proceeds must be spent as
20.7authorized by the Minnesota Constitution, articles XI and XIV. Unless otherwise specified,
20.8money appropriated in this article for a capital program or project may be used to pay state
20.9agency staff costs that are attributed directly to the capital program or project in accordance
20.10with accounting policies adopted by the commissioner of management and budget.
20.11
SUMMARY
20.12
Department of Transportation
$
1,000,000,000
20.13
Department of Management and Budget
1,000,000
20.14
TOTAL
$
1,001,000,000
20.15
APPROPRIATIONS

20.16
20.17
20.18
Sec. 3. DEPARTMENT OF
TRANSPORTATION CORRIDORS OF
COMMERCE
$
800,000,000
20.19(a) The appropriation in this section is
20.20to the commissioner of transportation for
20.21the corridors of commerce program under
20.22Minnesota Statutes, section 161.088, and is
20.23available in the amounts of $200,000,000
20.24in each fiscal year from 2016 to 2019. The
20.25commissioner may use up to 17 percent of
20.26the amount each year for program delivery.
20.27(b) In any fiscal year covered by this
20.28appropriation, the commissioner may
20.29identify projects based on previous selection
20.30processes or may perform a new selection.
20.31(c) The appropriation in this section cancels
20.32as specified under Minnesota Statutes, section
20.3316A.642, except that the commissioner of
20.34management and budget shall count the start
20.35of authorization for issuance of state bonds
21.1as the first day of the fiscal year during
21.2which the bonds are available to be issued as
21.3specified under paragraph (a), and not as the
21.4date of enactment of this section.

21.5
21.6
Sec. 4. TRANSPORTATION ECONOMIC
DEVELOPMENT PROGRAM
$
200,000,000
21.7(a) This appropriation is for the transportation
21.8economic development program under
21.9Minnesota Statutes, section 174.12, and is
21.10available in the amounts of $50,000,000 in
21.11each fiscal year from 2016 to 2019. The
21.12commissioner may use up to 17 percent of
21.13the amount each year for program delivery.
21.14(b) The appropriation in this section cancels
21.15as specified under Minnesota Statutes, section
21.1616A.642, except that the commissioner of
21.17management and budget shall count the start
21.18of authorization for issuance of state bonds
21.19as the first day of the fiscal year during
21.20which the bonds are available to be issued as
21.21specified under paragraph (a), and not as the
21.22date of enactment of this section.

21.23
Sec. 5. BOND SALE EXPENSES
$
1,000,000
21.24This appropriation is to the commissioner
21.25of management and budget for bond sale
21.26expenses under Minnesota Statutes, sections
21.2716A.641, subdivision 8; and 167.50,
21.28subdivision 4, and is available in the amounts
21.29of $250,000 in each fiscal year from 2016 to
21.302019.

21.31    Sec. 6. EFFECTIVE DATE.
21.32This article is effective July 1, 2015.

22.1ARTICLE 3
22.2GROSS RECEIPTS TAX

22.3    Section 1. Minnesota Statutes 2014, section 296A.061, is amended to read:
22.4296A.061 CANCELLATION OR NONRENEWAL OF LICENSES.
22.5The commissioner may cancel a license or not renew a license if one of the following
22.6conditions occurs:
22.7(1) the license holder has not filed a petroleum tax return or report for at least one year;
22.8(2) the license holder has not filed a gross receipts tax return for at least one year;
22.9(3) the license holder has not reported any petroleum tax liability or gross receipts
22.10tax liability on the license holder's returns or reports for at least one year; or
22.11(3) (4) the license holder requests cancellation of the license.

22.12    Sec. 2. [296A.085] MOTOR FUELS GROSS RECEIPTS TAX.
22.13    Subdivision 1. Imposition. A tax is imposed on the wholesale business of selling
22.14the means or substance used for propelling vehicles on the highways of this state. The tax
22.15is imposed at the rate of 6.5 percent of gross receipts derived by a distributor from the first
22.16sale at wholesale of gasoline, gasoline blended with ethanol, agricultural alcohol gasoline,
22.17and special fuels within this state for use in motor vehicles.
22.18    Subd. 2. Exemptions. Subdivision 1 does not apply to gasoline, denatured ethanol,
22.19special fuel, or alternative fuel purchased by an entity described in section 296A.07,
22.20subdivision 4, or 296A.08, subdivision 3.
22.21    Subd. 3. Conversion of tax rate. (a) Annually on or before August 1, the
22.22commissioner shall determine the applicable gross receipts motor fuels tax rate per gallon.
22.23The tax per gallon shall be the greater of either:
22.24(1) 6.5 percent of $2.50; or
22.25(2) 6.5 percent of the prior fiscal year's average wholesale gasoline price per
22.26gallon in Minnesota for all grades by refiners, as published by the United States Energy
22.27Information Administration and rounded to the nearest tenth of a cent per gallon. The
22.28wholesale price used must not include any tax or fee assessed by the state of Minnesota
22.29or the United States government.
22.30(b) The announced rate is effective for a 12-month period consisting of the next
22.31October 1 to September 30. The commissioner shall publish on the department's Web site
22.32the total of the gross receipts tax and the excise tax.
22.33    Subd. 4. Administrative provisions. Except as otherwise provided in this chapter,
22.34the relevant audit, assessment, refund, penalty, interest, enforcement, collection remedies,
23.1appeal, and administrative provisions of chapter 289A apply to taxes imposed under
23.2this section.
23.3    Subd. 5. Deposit of revenues. The commissioner shall deposit the revenues from
23.4the gross receipts tax into the highway user tax distribution fund.
23.5EFFECTIVE DATE.This section is effective October 1, 2015, and applies to
23.6gross receipts attributable to the described products and derived by a distributor on or
23.7after that day.

23.8    Sec. 3. Minnesota Statutes 2014, section 296A.11, is amended to read:
23.9296A.11 SELLER MAY COLLECT TAX.
23.10A person who directly or indirectly pays a gasoline or special fuel tax or motor fuels
23.11gross receipts tax as provided in this chapter and who does not in fact use the gasoline or
23.12special fuel in motor vehicles in this state or receive, store, or withdraw it from storage
23.13to be used personally for the purpose of producing or generating power for propelling
23.14aircraft, but sells or otherwise disposes of the same, except as provided in section 296A.16,
23.15subdivision 3
, is hereby authorized to collect, from the person to whom the gasoline or
23.16special fuel is so sold or disposed of, the tax so paid, and is hereby required, upon request,
23.17to make, sign, and deliver to such person an invoice of such sale or disposition. The sums
23.18collected must be held as a special fund in trust for the state of Minnesota.

23.19    Sec. 4. Minnesota Statutes 2014, section 296A.12, is amended to read:
23.20296A.12 GASOLINE AND SPECIAL FUEL TAX AND MOTOR FUELS
23.21GROSS RECEIPTS TAX IN LIEU OF OTHER TAXES.
23.22Gasoline and special fuel excise taxes and motor fuels gross receipts tax shall be
23.23in lieu of all other taxes imposed upon the business of selling or dealing in gasoline or
23.24special fuel, whether imposed by the state or by any of its political subdivisions, but are in
23.25addition to all ad valorem taxes now imposed by law. Nothing in this chapter is construed
23.26as prohibiting the governing body of any city of this state from licensing and regulating
23.27such a business where its authority is conferred by state law or city charter.

23.28    Sec. 5. Minnesota Statutes 2014, section 296A.16, is amended to read:
23.29296A.16 REFUND OR CREDIT.
23.30    Subdivision 1. Credit or refund of gasoline or special fuel tax paid. The
23.31commissioner shall allow the distributor credit or refund of the excise and motor fuels
23.32gross receipts tax paid on gasoline and special fuel:
24.1(1) exported or sold for export from the state, other than in the supply tank of a
24.2motor vehicle or of an aircraft;
24.3(2) sold to the United States government to be used exclusively in performing its
24.4governmental functions and activities or to any "cost plus a fixed fee" contractor employed
24.5by the United States government on any national defense project;
24.6(3) if the fuel is placed in a tank used exclusively for residential heating;
24.7(4) destroyed by accident while in the possession of the distributor;
24.8(5) in error;
24.9(6) in the case of gasoline only, sold for storage in an on-farm bulk storage tank, if
24.10the tax was not collected on the sale; and
24.11(7) in such other cases as the commissioner may permit, consistent with the provisions
24.12of this chapter and other laws relating to the gasoline and special fuel excise taxes.
24.13    Subd. 2. Fuel used in other vehicle; claim for refund. Any person who buys and
24.14uses gasoline for a qualifying purpose other than use in motor vehicles, snowmobiles
24.15except as provided in clause (2), or motorboats, or special fuel for a qualifying purpose
24.16other than use in licensed motor vehicles, and who paid the excise or gross receipts tax
24.17directly or indirectly through the amount of the tax being included in the price of the
24.18gasoline or special fuel, or otherwise, shall be reimbursed and repaid the amount of the
24.19tax paid upon filing with the commissioner a claim for refund in the form and manner
24.20prescribed by the commissioner, and containing the information the commissioner shall
24.21require. By signing any such claim which is false or fraudulent, the applicant shall be
24.22subject to the penalties provided in this chapter for knowingly making a false claim.
24.23The claim shall set forth the total amount of the gasoline so purchased and used by the
24.24applicant other than in motor vehicles, or special fuel purchased and used by the applicant
24.25other than in licensed motor vehicles, and shall state when and for what purpose it was
24.26used. When a claim contains an error in computation or preparation, the commissioner
24.27is authorized to adjust the claim in accordance with the evidence shown on the claim or
24.28other information available to the commissioner. The commissioner, on being satisfied
24.29that the claimant is entitled to the payments, shall approve the claim and transmit it to the
24.30commissioner of management and budget. The words "gasoline" or "special fuel" as used
24.31in this subdivision do not include aviation gasoline or special fuel for aircraft. Gasoline or
24.32special fuel bought and used for a "qualifying purpose" means:
24.33    (1) Gasoline or special fuel used in carrying on a trade or business, used on a farm
24.34situated in Minnesota, and used for a farming purpose. "Farm" and "farming purpose"
24.35have the meanings given them in section 6420(c)(2), (3), and (4) of the Internal Revenue
24.36Code as defined in section 289A.02, subdivision 7.
25.1    (2) Gasoline or special fuel used for off-highway business use.
25.2    (i) "Off-highway business use" means any use off the public highway by a person in
25.3that person's trade, business, or activity for the production of income.
25.4    (ii) Off-highway business use includes use of a passenger snowmobile off the public
25.5highways as part of the operations of a resort as defined in section 157.15, subdivision 11;
25.6and use of gasoline or special fuel to operate a power takeoff unit on a vehicle, but not
25.7including fuel consumed during idling time.
25.8    (iii) Off-highway business use does not include use as a fuel in a motor vehicle
25.9which, at the time of use, is registered or is required to be registered for highway use under
25.10the laws of any state or foreign country; or use of a licensed motor vehicle fuel tank in lieu
25.11of a separate storage tank for storing fuel to be used for a qualifying purpose, as defined in
25.12this section. Fuel purchased to be used for a qualifying purpose cannot be placed in the
25.13fuel tank of a licensed motor vehicle and must be stored in a separate supply tank.
25.14    (3) Gasoline or special fuel placed in the fuel tanks of new motor vehicles,
25.15manufactured in Minnesota, and shipped by interstate carrier to destinations in other
25.16states or foreign countries.
25.17    Subd. 3. Destruction by accident; refund to dealer. Notwithstanding the
25.18provisions of subdivision 1, the commissioner shall allow a dealer a refund of:
25.19(1) the tax paid by the distributor on, or gross receipts from the sale of, gasoline,
25.20undyed diesel fuel, or undyed kerosene destroyed by accident while in the possession of
25.21the dealer; or
25.22(2) the tax paid by a distributor or special fuels dealer on, or gross receipts from the
25.23sale of, other special fuels destroyed by accident while in the possession of the dealer.
25.24    Subd. 4. Refrigerator units; refunds. Notwithstanding the provisions of
25.25subdivision 1, the commissioner shall allow a special fuel dealer a refund of the tax paid
25.26on, or gross receipts from the sale of, fuel sold directly into a supply tank of a refrigeration
25.27unit with a separate engine and used exclusively by that refrigeration unit. A claim for
25.28refund may be filed as provided in this section.
25.29    Subd. 4a. Undyed kerosene; refunds. Notwithstanding subdivision 1, the
25.30commissioner shall allow a refund of the tax paid on, or gross receipts from the sale of,
25.31undyed kerosene used exclusively for a purpose other than as fuel for a motor vehicle
25.32using the streets and highways. To obtain a refund, the person making the sale to an end
25.33user must meet the Internal Revenue Service requirements for sales from a blocked pump.
25.34A claim for a refund may be filed as provided in this section.
25.35    Subd. 4b. Racing gasoline; refunds. Notwithstanding subdivision 1, the
25.36commissioner shall allow a licensed distributor a refund of the tax paid on, or gross
26.1receipts from the sale of, leaded gasoline of 110 octane or more that does not meet ASTM
26.2specification D4814 for gasoline and that is sold in bulk for use in nonregistered motor
26.3vehicles. A claim for a refund may be filed as provided for in this section.
26.4    Subd. 5. Qualifying service station credit. Notwithstanding any other provision of
26.5law to the contrary, the tax imposed on gasoline, undyed diesel fuel, or undyed kerosene,
26.6together with the amount attributable to gross receipts tax on these fuels, delivered to a
26.7qualified service station may not exceed, or must be reduced to, a rate not more than
26.8three cents per gallon above the state tax rate imposed on such products sold by a service
26.9station in a contiguous state located within the distance indicated in this subdivision. A
26.10distributor shall be allowed a credit or refund for the amount of reduction computed in
26.11accordance with this subdivision. For purposes of this subdivision, a "qualifying service
26.12station" means a service station located within 7.5 miles, measured by the shortest route
26.13by public road, from a service station selling like product in the contiguous state.
26.14    Subd. 7. Civil penalty for filing false claim. A person who violates section
26.15296A.23, subdivision 1 , shall forfeit the full amount of the claim. In addition, a person who
26.16is convicted under section 296A.23 for filing a false statement or claim shall, in addition
26.17to any criminal penalties imposed, be prohibited from filing with the commissioner any
26.18claim for refund upon gasoline purchased within six months after such conviction.
26.19    Subd. 8. Appropriation. There is appropriated to the persons entitled to refund or
26.20credit under this section, from the fund or account in the state treasury to which the money
26.21was credited, an amount sufficient to make the credit or refund.

26.22    Sec. 6. Minnesota Statutes 2014, section 296A.18, subdivision 2, is amended to read:
26.23    Subd. 2. Motorboat. Approximately 1-1/2 percent of all gasoline received in this
26.24state and 1-1/2 percent of all gasoline produced or brought into this state, except gasoline
26.25used for aviation purposes, is being used as fuel for the operation of motorboats on the
26.26waters of this state and of the total revenue derived from the imposition of the gasoline
26.27fuel tax and motor fuels gross receipts tax on gasoline for uses other than for aviation
26.28purposes, 1-1/2 percent of the revenue is the amount of tax on fuel used in motorboats
26.29operated on the waters of this state. The amount of unrefunded tax paid on gasoline used
26.30for motor boat purposes as computed in this chapter shall be paid into the state treasury
26.31and credited to a water recreation account in the special revenue fund for acquisition,
26.32development, maintenance, and rehabilitation of sites for public access and boating
26.33facilities on public waters; lake and river improvement; and boat and water safety.

26.34    Sec. 7. Minnesota Statutes 2014, section 296A.18, subdivision 3, is amended to read:
27.1    Subd. 3. Snowmobile. Approximately one percent of all gasoline received in and
27.2produced or brought into this state, except gasoline used for aviation purposes, is being
27.3used as fuel for the operation of snowmobiles in this state, and of the total revenue derived
27.4from the imposition of the gasoline fuel tax and motor fuels gross receipts tax on gasoline
27.5for uses other than for aviation purposes, one percent of such revenues is the amount of
27.6tax on fuel used in snowmobiles operated in this state.

27.7    Sec. 8. Minnesota Statutes 2014, section 296A.18, subdivision 4, is amended to read:
27.8    Subd. 4. All-terrain vehicle. Approximately 0.27 of one percent of all gasoline
27.9received in or produced or brought into this state, except gasoline used for aviation
27.10purposes, is being used for the operation of all-terrain vehicles in this state, and of the
27.11total revenue derived from the imposition of the gasoline fuel tax and motor fuels gross
27.12receipts tax on gasoline, 0.27 of one percent is the amount of tax on fuel used in all-terrain
27.13vehicles operated in this state.

27.14    Sec. 9. Minnesota Statutes 2014, section 296A.18, subdivision 5, is amended to read:
27.15    Subd. 5. Off-highway motorcycles. Approximately 0.046 of one percent of
27.16all gasoline received or produced in or brought into this state, except gasoline used for
27.17aviation purposes, is being used for the operation of off-highway motorcycles in this state,
27.18and of the total revenue derived from the imposition of the gasoline fuel tax and motor
27.19fuels gross receipts tax on gasoline for uses other than for aviation purposes, 0.046 of one
27.20percent is the amount of tax on fuel used in off-highway motorcycles operated in this state.

27.21    Sec. 10. Minnesota Statutes 2014, section 296A.18, subdivision 6, is amended to read:
27.22    Subd. 6. Off-road vehicle. Approximately 0.164 of one percent of all gasoline
27.23received or produced in or brought into this state, except gasoline used for aviation
27.24purposes, is being used for the off-road operation of off-road vehicles, as defined in
27.25section 84.797, in this state, and of the total revenue derived from the imposition of the
27.26gasoline fuel tax and motor fuels gross receipts tax on gasoline for uses other than aviation
27.27purposes, 0.164 of one percent is the amount of tax on fuel used for off-road operation
27.28of off-road vehicles in this state.

27.29    Sec. 11. Minnesota Statutes 2014, section 296A.18, subdivision 7, is amended to read:
27.30    Subd. 7. Forest road. Approximately 0.116 percent of the total annual unrefunded
27.31revenue from the gasoline fuel tax and motor fuels gross receipts tax on gasoline on all
27.32gasoline and special fuel received in, produced, or brought into this state, except gasoline
28.1and special fuel used for aviation purposes, is derived from the operation of motor vehicles
28.2on state forest roads and county forest access roads. This revenue, together with interest
28.3and penalties for delinquency in payment, paid or collected pursuant to the provisions of
28.4this chapter, is appropriated from the highway user tax distribution fund and must be
28.5transferred and credited in equal installments on July 1 and January 1 to the state forest
28.6road account established in section 89.70. Of this amount, 0.0605 percent is annually
28.7derived from motor vehicles operated on state forest roads and 0.0555 percent is annually
28.8derived from motor vehicles operated on county forest access roads in this state. An
28.9amount equal to 0.0555 percent of the unrefunded revenue must be annually transferred to
28.10counties for the management and maintenance of county forest roads.

28.11    Sec. 12. REVISOR'S INSTRUCTION.
28.12In Minnesota Statutes, the revisor of statutes shall rename Minnesota Statutes,
28.13chapter 296A, to be "Tax on Petroleum and Other Fuels; Gross Receipts Tax."

28.14ARTICLE 4
28.15VEHICLE REGISTRATION TAX

28.16    Section 1. Minnesota Statutes 2014, section 168.013, subdivision 1a, is amended to read:
28.17    Subd. 1a. Passenger automobile; hearse. (a) On passenger automobiles as defined
28.18in section 168.002, subdivision 24, and hearses, except as otherwise provided, the tax
28.19shall be an amount equal to a combination of the following: $10 for those vehicles with
28.20registration periods beginning on or before June 30, 2018; and $20 for those vehicles
28.21with registration periods on or after July 1, 2018, plus an additional tax equal to 1.25 a
28.22percentage of 1.5 percent of the base value as specified in paragraph (h).
28.23    (b) Subject to the classification provisions herein, "base value" means the
28.24manufacturer's suggested retail price of the vehicle including destination charge using list
28.25price information published by the manufacturer or determined by the registrar if no
28.26suggested retail price exists, and shall not include the cost of each accessory or item of
28.27optional equipment separately added to the vehicle and the suggested retail price.
28.28    (c) If the manufacturer's list price information contains a single vehicle identification
28.29number followed by various descriptions and suggested retail prices, the registrar shall
28.30select from those listings only the lowest price for determining base value.
28.31    (d) If unable to determine the base value because the vehicle is specially constructed,
28.32or for any other reason, the registrar may establish such value upon the cost price to the
28.33purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales
28.34or use tax or any local sales or other local tax.
29.1    (e) The registrar shall classify every vehicle in its proper base value class as follows:
29.2
FROM
TO
29.3
$
0
$ 199.99
29.4
$
200
$ 399.99
29.5and thereafter a series of classes successively set in brackets having a spread of $200
29.6consisting of such number of classes as will permit classification of all vehicles.
29.7    (f) The base value for purposes of this section shall be the middle point between
29.8the extremes of its class.
29.9    (g) The registrar shall establish the base value, when new, of every passenger
29.10automobile and hearse registered prior to the effective date of Extra Session Laws 1971,
29.11chapter 31, using list price information published by the manufacturer or any nationally
29.12recognized firm or association compiling such data for the automotive industry. If unable
29.13to ascertain the base value of any registered vehicle in the foregoing manner, the registrar
29.14may use any other available source or method. The registrar shall calculate tax using base
29.15value information available to dealers and deputy registrars at the time the application for
29.16registration is submitted. The tax on all previously registered vehicles shall be computed
29.17upon the base value thus determined taking into account the depreciation provisions of
29.18paragraph (h).
29.19    (h) The annual additional tax must be computed upon a the specified percentage of
29.201.5 percent of the base value as follows: during the first year of vehicle life, upon 100
29.21percent of the base value; for the second year, 90 percent of such value; for the third year,
29.2280 percent of such value; for the fourth year, 70 percent of such value; for the fifth year, 60
29.23percent of such value; for the sixth year, 50 percent of such value; for the seventh year,
29.2440 percent of such value; for the eighth year, 30 percent of such value; for the ninth
29.25year, 20 percent of such value; for the tenth year, ten percent of such value; for the 11th
29.26and each succeeding year, the sum of $25.
29.27    (i) In no event shall the annual additional tax be less than $25.
29.28    (j) For any vehicle previously registered in Minnesota, the annual additional tax
29.29due under this subdivision must not exceed the smallest amount of annual additional
29.30tax previously paid or due on the vehicle.
29.31EFFECTIVE DATE.This section is effective the day following final enactment
29.32and applies to any tax for a registration period that begins on or after September 1, 2015.

30.1ARTICLE 5
30.2METROPOLITAN TRANSIT IMPROVEMENT AREA SALES TAX

30.3    Section 1. Minnesota Statutes 2014, section 297A.992, subdivision 1, is amended to
30.4read:
30.5    Subdivision 1. Definitions. For purposes of this section, the following terms have
30.6the meanings given them:
30.7    (1) "metropolitan transportation area" means the counties participating in the joint
30.8powers agreement under subdivision 3;
30.9    (2) "eligible county" means the county of Anoka, Carver, Dakota, Hennepin,
30.10Ramsey, Scott, or Washington; and
30.11    (3) "committee" means the Grant Evaluation and Ranking System (GEARS)
30.12Committee;
30.13    (4) "minimum guarantee county" means any metropolitan county or eligible county
30.14that is participating in the joint powers agreement under subdivision 3, whose proportion
30.15of the annual sales tax revenue under this section collected within that county is less
30.16than or equal to three percent; and
30.17    (5) "population" means the population, as defined in section 477A.011, subdivision
30.183
, estimated or established by July 15 of the year prior to the calendar year in which
30.19the representatives will serve on the Grant Evaluation and Ranking System Committee
30.20established under subdivision 5.

30.21    Sec. 2. Minnesota Statutes 2014, section 297A.992, subdivision 4, is amended to read:
30.22    Subd. 4. Joint powers board. (a) The joint powers board must consist of one
30.23or more commissioners of each county that is in the metropolitan transportation area,
30.24appointed by its county board, and the chair of the Metropolitan Council, who must have
30.25voting rights, subject to subdivision 3, clause (4). The joint powers board has the powers
30.26and duties provided in this section and section 471.59.
30.27    (b) The joint powers board may utilize no more than three-fourths of one percent of
30.28the proceeds of the taxes imposed under this section for ordinary administrative expenses
30.29incurred in carrying out the provisions of this section. Any additional administrative
30.30expenses must be paid by the participating counties.
30.31    (c) The joint powers board may establish a technical advisory group that is separate
30.32from the GEARS Committee. The group must consist of representatives of cities, counties,
30.33or public agencies, including the Metropolitan Council. The technical advisory group
30.34must be used solely for technical consultation purposes.

31.1    Sec. 3. Minnesota Statutes 2014, section 297A.992, subdivision 5, is amended to read:
31.2    Subd. 5. Grant application and awards; Grant Evaluation and Ranking System
31.3(GEARS) Committee. (a) The joint powers board shall establish a grant application
31.4process and identify the amount of available funding for grant awards. Grant applications
31.5must be submitted in a form prescribed by the joint powers board. An applicant must
31.6provide, in addition to all other information required by the joint powers board, the
31.7estimated cost of the project, the amount of the grant sought, possible sources of funding
31.8in addition to the grant sought, and identification of any federal funds that will be utilized
31.9if the grant is awarded. A grant application seeking transit capital funding must identify
31.10the source of money necessary to operate the transit improvement.
31.11    (b) The joint powers board shall establish a timeline and procedures for the award of
31.12grants, and may award grants only to the state and political subdivisions. The board shall
31.13define objective criteria for the award of grants, which must include, but not be limited to,
31.14consistency with the most recent version of the transportation policy plan adopted by the
31.15Metropolitan Council under section 473.146. The joint powers board shall maximize the
31.16availability and use of federal funds in projects funded under this section.
31.17    (c) The joint powers board shall establish a GEARS Committee, which must consist
31.18of:
31.19    (1) one county commissioner from each county that is in the metropolitan
31.20transportation area, appointed by its county board;
31.21    (2) one elected city representative from each county that is in the metropolitan
31.22transportation area;
31.23    (3) one additional elected city representative from each county for every additional
31.24400,000 in population, or fraction of 400,000, in the county that is above 400,000 in
31.25population; and
31.26    (4) the chair of the Metropolitan Council Transportation Committee.
31.27    (d) Each city representative must be elected at a meeting of cities in the metropolitan
31.28transportation area, which must be convened for that purpose by the Association of
31.29Metropolitan Municipalities.
31.30    (e) The committee shall evaluate grant applications following objective criteria
31.31established by the joint powers board, and must provide to the joint powers board a
31.32selection list of transportation projects that includes a priority ranking.
31.33    (f) A grant award for a transit project located within the metropolitan area, as defined
31.34in section 473.121, subdivision 2, may be funded only after the Metropolitan Council
31.35reviews the project for consistency with the transit portion of the Metropolitan Council
31.36policy plan and one of the following occurs:
32.1    (1) the Metropolitan Council finds the project to be consistent;
32.2    (2) the Metropolitan Council initially finds the project to be inconsistent, but after a
32.3good faith effort to resolve the inconsistency through negotiations with the joint powers
32.4board, agrees that the grant award may be funded; or
32.5    (3) the Metropolitan Council finds the project to be inconsistent, and submits the
32.6consistency issue for final determination to a panel, which determines the project to be
32.7consistent. The panel is composed of a member appointed by the chair of the Metropolitan
32.8Council, a member appointed by the joint powers board, and a member agreed upon by
32.9both the chair and the joint powers board.
32.10    (g) (d) Grants must be funded by the proceeds of the taxes imposed under this
32.11section and under section 297A.9925, bonds, notes, or other obligations issued by the
32.12joint powers board under subdivision 7.
32.13    (h) Notwithstanding the provisions of this section except subdivision 6a, of
32.14the revenue collected under this section, the joint powers board shall allocate to the
32.15Metropolitan Council, in fiscal years 2012 and 2013, an amount not less than 75 percent of
32.16the net cost of operations for those transitways that were receiving metropolitan sales tax
32.17funds through an operating grant agreement on June 30, 2011.
32.18(i) The Metropolitan Council shall expend any funds allocated under paragraph (h)
32.19for the operations of the specified transitways solely within those counties that are in the
32.20metropolitan transportation area.
32.21    (j) (e) Nothing in paragraph (h) or (i) this section prevents grant awards to
32.22the Metropolitan Council for capital and operating assistance for transitways and
32.23park-and-ride facilities.

32.24    Sec. 4. Minnesota Statutes 2014, section 297A.992, subdivision 6, is amended to read:
32.25    Subd. 6. Allocation of grant awards. (a) The board must allocate grant awards
32.26only for the following transit purposes:
32.27    (i) (1) capital improvements to transitways, including, but not limited to, highway
32.28bus rapid transit, commuter rail rolling stock, light rail vehicles, and transitway buses;
32.29    (ii) (2) capital costs for park-and-ride facilities, as defined in section 174.256,
32.30subdivision 2;
32.31    (iii) (3) feasibility studies, planning, alternatives analyses, environmental studies,
32.32engineering, property acquisition for transitway purposes, and construction of transitways.
32.33A grant must not exceed an amount equal to total capital cost less the amounts of expected
32.34contributions by regional railroad authorities and the federal government; and
33.1    (iv) (4) 50 percent of net operating assistance for cost of transitways that commenced
33.2revenue operations before September 30, 2015;
33.3(5) 100 percent of net operating cost of the Robert Street transitway and Riverview
33.4Corridor transitway; and
33.5    (6) capital and operating costs for any transitway improvement or transitway.
33.6    (b) The joint powers board must annually award grants to each minimum guarantee
33.7county in an amount no less than the amount of sales tax revenue collected within that
33.8county.
33.9    (c) No more than 1.25 percent of the total awards may be annually allocated for
33.10planning, studies, design, construction, maintenance, and operation of pedestrian programs
33.11and bicycle programs and pathways.

33.12    Sec. 5. [297A.9925] METROPOLITAN TRANSIT IMPROVEMENT AREA
33.13TRANSIT SALES AND USE TAX; RATE; IMPOSITION; USES; PRIORITIES.
33.14    Subdivision 1. Definitions. For purposes of this section, the following terms have
33.15the following meanings:
33.16(1) "metropolitan transit improvement area" or "area" means the counties of Anoka,
33.17Carver, Dakota, Hennepin, Ramsey, Scott, and Washington;
33.18(2) "Metropolitan Council" or "council" means the Metropolitan Council established
33.19by section 473.123; and
33.20(3) "local governmental unit" means any county, city, town, school district, special
33.21district, or other political subdivisions or public corporation, other than the council or a
33.22metropolitan agency, lying in whole or in part within the metropolitan transit improvement
33.23area.
33.24    Subd. 2. Metropolitan transit improvement area transit sales tax imposition;
33.25rate. (a) Notwithstanding section 297A.99, subdivisions 1, 2, and 3, 477A.016, or any other
33.26law, and subject to the approval requirements in paragraph (c), a metropolitan area transit
33.27sales and use tax is imposed at a rate of three-quarters of one percent on retail sales and
33.28uses taxable under this chapter occurring within the metropolitan transit improvement area.
33.29(b) The taxes imposed under this subdivision are not included in determining if the
33.30total tax on lodging in the city of Minneapolis exceeds the maximum allowed tax under
33.31Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special Session
33.32chapter 5, article 12, section 87, and Laws 2012, chapter 299, article 3, section 3, or in
33.33determining a tax that may be imposed under any other limitations.
33.34(c) The tax imposed under paragraph (a) is imposed on all counties in the
33.35metropolitan transit improvement area, except that if the governing boards of at least
34.1four counties in the area vote to opt out of the tax before June 15, 2015, the tax is not
34.2imposed in the counties in which the governing board has voted to opt out of the tax. If
34.3the governing boards of fewer than four counties in the area vote to opt out of the tax, then
34.4the tax is imposed on all counties in the area.
34.5    Subd. 3. Administration; collection; enforcement. Except as otherwise provided
34.6in this section, the provisions of section 297A.99, subdivisions 4 and 6 to 12a, govern the
34.7administration, collection, and enforcement of the tax authorized under this section.
34.8    Subd. 4. Distribution of net revenues. After deducting costs of collection and other
34.9costs under section 297A.99, subdivision 11, the commissioner of revenue shall remit:
34.10(1) to the Counties Transit Improvement Board, an amount equal to 8.5 percent of
34.11the net proceeds of the tax imposed under subdivision 2; and
34.12(2) to the Metropolitan Council, the remaining proceeds.
34.13    Subd. 5. General purpose; consistency with transportation policy plan. (a) The
34.14Metropolitan Council shall utilize the proceeds of the tax imposed under subdivision
34.152 for transit purposes described under subdivision 7, within the metropolitan transit
34.16improvement area.
34.17(b) Projects funded with the metropolitan transit improvement area transit sales and
34.18use tax proceeds must not be inconsistent with the long-range transportation policy plan
34.19adopted by the council under section 473.146 and located within the transit improvement
34.20area.
34.21    Subd. 6. Priorities. The council shall allocate revenues from the taxes imposed
34.22under this section in conformance with the following priority order:
34.23(1) payment of debt service necessary for the fiscal year on bonds or other
34.24obligations secured by revenues from the tax imposed in this section;
34.25(2) proportional distribution of an amount equal to one-eighth of the total net
34.26proceeds of the taxes imposed under subdivision 2 and under section 297A.992,
34.27subdivision 2, so that the share of each county in the metropolitan transit improvement
34.28area is based on the proportion of taxes generated in that county. Grant awards under
34.29this clause must be used by Hennepin County only for transit purposes, but by all other
34.30counties for any transit purpose or any transportation purpose that has a nexus to transit or
34.31transit-oriented development; and
34.32(3) as otherwise authorized under subdivision 7.
34.33    Subd. 7. Use of tax proceeds. (a) After deducting the amount necessary under
34.34subdivision 6, clauses (1) and (2), the council shall allocate remaining revenues from the
34.35tax imposed in this section for the following purposes:
35.1(1) operating and capital costs to preserve existing bus services that are in
35.2conformance with regional transit performance standards as specified in the council's
35.3transportation policy plan;
35.4(2) 100 percent of the net operating costs of arterial bus rapid transit lines in operation
35.5on September 30, 2015, and 50 percent of the net operating costs of other transitways;
35.6(3) grants required under paragraph (b);
35.7(4) operating and capital costs for transit expansion in accordance with the transit
35.8portion of the council's policy transit plan, including, but not limited to:
35.9(i) expansion and upgrades of regular route and commuter bus service provided
35.10by metropolitan transit and replacement services under section 473.388, with overall
35.11expansion of service by an annual average rate of four percent;
35.12(ii) development of arterial bus rapid transit, transitways, and streetcar systems; and
35.13(iii) maintenance of affordable transit fares;
35.14(5) operating and capital costs for expansion and improvement of regional
35.15transitways and streetcars;
35.16(6) to transit authorities to establish, replace, or modify transit shelters to conform
35.17with design specifications and maintenance requirements within the meaning of section
35.18473.41;
35.19(7) as grants in the annual amount of $390,000, payable by July 31, to transportation
35.20management organizations that provide services exclusively or primarily in (1) each city
35.21of the first class, as provided under section 410.01; and (2) the city having the highest
35.22population as of the effective date of this section located along the marked Interstate
35.23Highway 494 corridor. Permissible uses include administrative expenses and programming
35.24and service expansion, including but not limited to staffing, communications, outreach and
35.25education program development, and operations management;
35.26(8) for financial assistance to replacement service providers under section 473.388
35.27in the amount of $1,500,000 in fiscal year 2016 and $1,500,000 in fiscal year 2017, to
35.28implement a demonstration project that provides regular route transit or express bus
35.29service between municipalities in the metropolitan transportation improvement area,
35.30excluding cities of the first class. The council shall allocate the appropriated funds as
35.31directed by the replacement service providers who shall collectively identify one or more
35.32demonstration projects for financial assistance under this section and submit a notification
35.33of the allocation to the Metropolitan Council. Criteria for evaluating and identifying
35.34demonstration projects must include but are not limited to:
35.35(i) scope of service offering improvements;
35.36(ii) integration with transit facilities and major business, retail, or suburban centers;
36.1(iii) extent to which a proposed route complements existing transit service; and
36.2(iv) density of employment along a proposed route;
36.3(9) to the Center for Transportation Studies, University of Minnesota, $500,000
36.4annually for research to improve accessibility, operational efficiency, and safety of transit
36.5systems; and
36.6(10) any other costs payable in accordance with subdivisions 5, 6, and 7, which
36.7may include, but are not limited to, transit operations, capital improvements, design,
36.8engineering and environmental work, acquisition of real property, transit planning and
36.9feasibility studies, and to provide grants to local governmental units for transit purposes,
36.10including streetcars, or for bicycle and pedestrian projects.
36.11(b) The council shall make available an amount equal to ten percent of the revenues
36.12from the tax imposed in this section and in section 297A.992 through grants to local
36.13units of government within the metropolitan transit improvement area for construction
36.14and maintenance of regional bicycle, trail, and pedestrian infrastructure for safe routes to
36.15school infrastructure and for active transportation programs under section 174.38.
36.16EFFECTIVE DATE.This section is effective for sales and purchases made after
36.17September 30, 2015, and applies in the counties of Anoka, Carver, Dakota, Hennepin,
36.18Ramsey, Scott, and Washington, except that subdivision 2, paragraph (c), is effective the
36.19day following final enactment.

36.20    Sec. 6. REPEALER.
36.21Minnesota Statutes 2014, section 473.4051, subdivision 2, is repealed.
36.22EFFECTIVE DATE.This section is effective July 1, 2015.

36.23ARTICLE 6
36.24OTHER TAXES, FEES, AND TRANSFERS

36.25    Section 1. Minnesota Statutes 2014, section 115A.908, is amended to read:
36.26115A.908 MOTOR VEHICLE TRANSFER FEE.
36.27    Subdivision 1. Fee charged. (a) A fee of $10 shall be charged on the initial
36.28registration and each subsequent transfer of title within the state, other than transfers for
36.29resale purposes, of every motor vehicle weighing more than 1,000 pounds. The fee shall
36.30be collected by the commissioner of public safety. Registration plates or certificates
36.31of title may not be issued by the commissioner of public safety for the ownership or
37.1operation of a motor vehicle subject to the transfer fee unless the fee is paid. The fee may
37.2not be charged on the transfer of:
37.3(1) previously registered vehicles if the transfer is to the same person;
37.4(2) vehicles subject to the conditions specified in section 297A.70, subdivision 2; or
37.5(3) vehicles purchased in another state by a resident of another state if more than 60
37.6days have elapsed after the date of purchase and the purchaser is transferring title to this
37.7state and has become a resident of this state after the purchase.
37.8(b) A surcharge of $10 is imposed on each fee charged under paragraph (a).
37.9    Subd. 2. Deposit of revenue. (a) Fee revenue collected under this section shall be
37.10credited to the environmental fund.
37.11    (b) The commissioner of transportation shall deposit the proceeds of the surcharge
37.12as follows:
37.13    (1) 50 percent in the small city streets and bridges account under section 174.54,
37.14subdivision 1; and
37.15    (2) 50 percent in the larger city streets and bridges account under section 174.54,
37.16subdivision 2.

37.17    Sec. 2. Minnesota Statutes 2014, section 161.081, subdivision 1, is amended to read:
37.18    Subdivision 1. Distribution of five percent. (a) Pursuant to article 14, section 5, of
37.19the Constitution, five percent of the net highway user tax distribution fund is set aside, and
37.20apportioned to the county state-aid highway fund.
37.21(b) That apportionment is further distributed as follows:
37.22(1) 30.5 percent to the town road account created in section 162.081;
37.23(2) 16 percent to the town bridge account, which is created in the state treasury 56.5
37.24percent to the county state-aid highway fund, consisting of: (i) 30.5 percent to the town
37.25road account created in section 162.081; (ii) 16 percent to the town bridge account created
37.26in the state treasury; and (iii) ten percent to the county municipal accounts for purposes
37.27described in section 162.08; and
37.28(3) 53.5 percent to the flexible highway account created in subdivision 3 (2) 43.5
37.29percent to the municipal state-aid street fund.
37.30EFFECTIVE DATE.This section is effective July 1, 2015.

37.31    Sec. 3. Minnesota Statutes 2014, section 161.082, subdivision 1, is amended to read:
37.32    Subdivision 1. Creation of account; rules. (a) The county turnback account is
37.33created in the state treasury, consisting of money allotted or appropriated to the account
38.1from the trunk highway fund or from any other source that will be used for the restoration
38.2of trunk highways that have reverted or that will revert to counties.
38.3(b) Except as provided in this section and in section 161.081, all money accruing
38.4to the county turnback account shall be expended in accordance with rules of the
38.5commissioner of transportation in paying a county for the restoration of former trunk
38.6highways, or portions thereof, that have reverted to the county in accordance with law, and
38.7have become a part of the county state-aid highway system.
38.8(c) The legislature finds that restoration of trunk highways that have reverted or
38.9will revert to counties is a trunk highway purpose within the meaning of the Minnesota
38.10Constitution, article XIV, section 2.

38.11    Sec. 4. Minnesota Statutes 2014, section 161.082, is amended by adding a subdivision
38.12to read:
38.13    Subd. 1a. Budget submission. As part of each biennial budget submission to the
38.14legislature, the commissioner shall include a request for an appropriation to the county
38.15turnback account.

38.16    Sec. 5. Minnesota Statutes 2014, section 161.083, is amended to read:
38.17161.083 MUNICIPAL TURNBACK ACCOUNT, EXPENDITURE.
38.18    Subdivision 1. Creation of account. (a) The municipal turnback account is created
38.19in the state treasury, consisting of money allotted or appropriated to the account from the
38.20trunk highway fund or from any other source that will be used for the restoration of trunk
38.21highways that have reverted or that will revert to cities.
38.22(b) Except as hereinafter provided in this section, all money accruing to the
38.23municipal turnback account shall be expended in accordance with rules of the
38.24commissioner of transportation in paying a municipality having a population of 5,000 or
38.25more for the reconstruction and improvement of former trunk highways, or portions
38.26thereof, that have reverted to such municipality in accordance with law, and have become
38.27a part of the municipal state-aid street system.
38.28(c) The legislature finds that restoration of trunk highways that have reverted or
38.29will revert to cities is a trunk highway purpose within the meaning of the Minnesota
38.30Constitution, article XIV, section 2.
38.31    Subd. 2. Biennial budget submission. As part of each biennial budget submission
38.32to the legislature, the commissioner shall include a request for an appropriation to the
38.33municipal turnback account.

39.1    Sec. 6. Minnesota Statutes 2014, section 162.07, subdivision 1a, is amended to read:
39.2    Subd. 1a. Apportionment sum and excess sum. (a) For purposes of this
39.3subdivision, "distribution amount" means the amount identified in section 162.06,
39.4subdivision 1, after the deductions provided for in section 162.06 for administrative costs,
39.5disaster account, research account, and state park road account.
39.6    (b) The apportionment sum is calculated by subtracting the excess sum, as calculated
39.7in paragraph (c), from as 68 percent of the distribution amount.
39.8    (c) The excess sum is calculated as the sum of revenue within 32 percent of the
39.9distribution amount:.
39.10    (1) attributed to that portion of the gasoline excise tax rate under section 296A.07,
39.11subdivision 3, in excess of 20 cents per gallon, and to that portion of the excise tax rates
39.12in excess of the energy equivalent of a gasoline excise tax rate of 20 cents per gallon
39.13for E85 and M85 under section 296A.07, subdivision 3, and special fuel under section
39.14296A.08, subdivision 2;
39.15    (2) attributed to a change in the passenger vehicle registration tax under section
39.16168.013, imposed on or after July 1, 2008, that exceeds (i) the amount collected in fiscal
39.17year 2008, multiplied by (ii) the annual average United States Consumer Price Index for
39.18the calendar year previous to the current calendar year, divided by the annual average
39.19United States Consumer Price Index for calendar year 2007; and
39.20    (3) attributed to that portion of the motor vehicle sales tax revenue in excess of the
39.21percentage allocated to the county state-aid highway fund in fiscal year 2007.
39.22    (d) For purposes of this subdivision, the United States Consumer Price Index
39.23identified in paragraph (c) is for all urban consumers, United States city average, as
39.24determined by the United States Department of Labor.
39.25EFFECTIVE DATE.This section is effective October 1, 2015.

39.26    Sec. 7. Minnesota Statutes 2014, section 168.012, subdivision 1c, is amended to read:
39.27    Subd. 1c. Payment of administrative, plate, and filing fee. The annual
39.28administrative fee for a tax-exempt vehicle under this section is $5. The license plate
39.29fee for a tax-exempt vehicle, except a trailer, is $10 $12.50 for two plates per vehicle,
39.30payable only on the first tax-exempt registration of the vehicle. The registration period for
39.31a tax-exempt vehicle is biennial. The administrative fee is due on March 1 biennially and
39.32payable the preceding January 1, with validating stickers issued at time of payment.

39.33    Sec. 8. Minnesota Statutes 2014, section 168.013, subdivision 1d, is amended to read:
40.1    Subd. 1d. Trailer. (a) On trailers registered at a gross vehicle weight of greater
40.2than 3,000 pounds, the annual tax is based on total gross weight and is 30 percent of the
40.3Minnesota base rate prescribed in subdivision 1e, when the gross weight is 15,000 pounds
40.4or less, and when the gross weight of a trailer is more than 15,000 pounds, the tax for the
40.5first eight years of vehicle life is 100 percent of the tax imposed in the Minnesota base rate
40.6schedule, and during the ninth and succeeding years of vehicle life the tax is 75 percent of
40.7the Minnesota base rate prescribed by subdivision 1e. A trailer registered at a gross vehicle
40.8weight greater than 3,000 pounds but no greater than 7,200 pounds may be taxed either: (1)
40.9annually as provided in this paragraph, or (2) once every three years on the basis of total
40.10gross weight and is 90 percent of the Minnesota base rate prescribed in subdivision 1e.
40.11(b) Farm trailers with a gross weight in excess of 10,000 pounds and as described in
40.12section 168.002, subdivision 8, are taxed as farm trucks as prescribed in subdivision 1c.
40.13(c) Effective on and after July 1, 2001, trailers registered at a gross vehicle weight
40.14of 3,000 pounds or less must display a distinctive plate. The registration on the license
40.15plate is valid for the life of the trailer only if it remains registered at the same gross vehicle
40.16weight. The onetime registration tax for trailers registered for the first time in Minnesota
40.17is $55. For trailers registered in Minnesota before July 1, 2001, and for which:
40.18(1) registration is desired for the remaining life of the trailer, the registration tax
40.19is $25; or
40.20(2) permanent registration is not desired, the biennial registration tax is $10 for the
40.21first renewal if registration is renewed between and including July 1, 2001, and June 30,
40.222003. These trailers must be issued permanent registration at the first renewal on or after
40.23July 1, 2003, and the registration tax is $20.
40.24    For trailers registered at a gross weight of 3,000 pounds or less before July 1, 2001,
40.25but not renewed until on or after July 1, 2003, the registration tax is $20 and permanent
40.26registration must be issued.
40.27EFFECTIVE DATE.This section is effective the day following final enactment
40.28and applies to taxes payable for a registration period starting on or after January 1, 2016.

40.29    Sec. 9. Minnesota Statutes 2014, section 168.12, subdivision 2, is amended to read:
40.30    Subd. 2. Amateur radio licensee; special plates, rules. (a) The commissioner shall
40.31issue amateur radio plates to an applicant who:
40.32    (1) is an owner of a passenger automobile or recreational vehicle;
40.33    (2) is a resident of this state;
40.34    (3) holds an official amateur radio station license or a citizens radio service class D
40.35license, in good standing, issued by the Federal Communications Commission;
41.1    (4) pays the registration tax required under section 168.013;
41.2    (5) pays a fee of $10 $12.50 for each set of special plates and any other fees required
41.3by this chapter; and
41.4    (6) complies with this chapter and rules governing the registration of motor vehicles
41.5and licensing of drivers;
41.6    (b) In lieu of the registration number required for identification under subdivision 1,
41.7the plates must indicate the official amateur call letters of the applicant, as assigned by the
41.8Federal Communications Commission, and the words "AMATEUR RADIO."
41.9    (c) This provision for the issue of special plates applies only if the applicant's motor
41.10vehicle is already registered in Minnesota so that the applicant has valid regular Minnesota
41.11plates issued for that motor vehicle under which to operate it during the time that it will
41.12take to have the necessary special plates made.
41.13    (d) If owning more than one motor vehicle of the type specified in this subdivision,
41.14the applicant may apply for special plates for each motor vehicle and, if each application
41.15complies with this subdivision, the commissioner shall furnish the applicant with
41.16the special plates, indicating the official amateur call letters and other distinguishing
41.17information as the commissioner considers necessary, for each of the motor vehicles.
41.18    (e) The commissioner may make reasonable rules governing the use of the special
41.19plates as will assure the full compliance by the owner of the special plates, with all existing
41.20laws governing the registration of motor vehicles and the transfer and use of the plates.
41.21    (f) Despite any contrary provision of subdivision 1, the special plates issued under this
41.22subdivision may be transferred by an owner to another motor vehicle listed in paragraph
41.23(a) and registered to the same owner, upon the payment of a fee of $5. The commissioner
41.24must be notified before the transfer and may prescribe a format for the notification.

41.25    Sec. 10. Minnesota Statutes 2014, section 168.12, subdivision 2b, is amended to read:
41.26    Subd. 2b. Firefighters; special plates, rules. (a) The commissioner shall issue
41.27special plates, or a single license plate in the case of a motorcycle plate, to any applicant
41.28who:
41.29    (1) is a member of a fire department receiving state aid under chapter 69, has a
41.30letter from the fire chief, and is an owner of a passenger automobile, a one-ton pickup
41.31truck, or a motorcycle;
41.32    (2) pays a fee of $10 $12.50 and any other fees required by this chapter;
41.33    (3) pays the registration tax required by this chapter for the motor vehicle; and
41.34    (4) complies with this chapter and rules governing the registration of motor vehicles
41.35and licensing of drivers.
42.1    (b) In lieu of the identification required under subdivision 1, the special plates must
42.2bear an emblem of a Maltese Cross together with any numbers or characters prescribed by
42.3the commissioner.
42.4    (c) Special plates issued under this subdivision may only be used during the period
42.5that the owner of the motor vehicle is a member of a fire department as specified in this
42.6subdivision. When the individual to whom the special plates were issued is no longer a
42.7member of a fire department or when the motor vehicle ownership is transferred, the
42.8owner shall remove the special plates from the motor vehicle. If the commissioner
42.9receives written notification that an individual is no longer qualified for these special
42.10plates, the commissioner shall invalidate the plates and notify the individual of this
42.11action. The individual may retain the plate only upon demonstrating compliance with the
42.12qualifications of this subdivision. Upon removal or invalidation of the special plates or
42.13special motorcycle plate, the owner or purchaser of the motor vehicle shall obtain regular
42.14plates, a regular motorcycle plate, or special plates for the proper registration classification
42.15for the motor vehicle.
42.16    (d) A special motorcycle license plate issued under this subdivision must be the
42.17same size as a standard motorcycle license plate.
42.18    (e) Upon payment of a fee of $5, plates issued under this subdivision for a passenger
42.19automobile or truck may be transferred to another passenger automobile or truck owned
42.20or jointly owned by the person to whom the plates were issued. On payment of a fee of
42.21$5, a plate issued under this subdivision for a motorcycle may be transferred to another
42.22motorcycle owned or jointly owned by the person to whom the plate was issued.
42.23    (f) The commissioner may adopt rules under the Administrative Procedure Act,
42.24sections 14.001 to 14.69, to govern the issuance and use of the special plates authorized
42.25in this subdivision.

42.26    Sec. 11. Minnesota Statutes 2014, section 168.12, subdivision 2c, is amended to read:
42.27    Subd. 2c. National Guard; special plates, rules. (a) The commissioner shall
42.28issue special plates to any applicant who:
42.29    (1) is a regularly enlisted, commissioned, or retired member of the Minnesota
42.30National Guard, other than an inactive member who is not a retired member, and is an
42.31owner of a passenger automobile;
42.32    (2) pays a fee of $10 $12.50 and any other fees required by this chapter;
42.33    (3) pays the registration tax required by this chapter; and
42.34    (4) complies with this chapter and rules governing the registration of motor vehicles
42.35and licensing of drivers.
43.1    (b) The adjutant general shall design the emblem for these special plates subject to
43.2the approval of the commissioner.
43.3    (c) Special plates issued under this subdivision may only be used during the period
43.4that the owner of the motor vehicle is an active or retired member of the Minnesota National
43.5Guard as specified in this subdivision. When the individual to whom the special plates
43.6were issued is no longer an active or retired member of the Minnesota National Guard,
43.7the special plates must be removed from the vehicle by the owner. If the commissioner
43.8receives written notification that an individual is no longer qualified for these special plates,
43.9the commissioner shall invalidate the plates and notify the individual of this action. The
43.10individual may retain the plate only upon demonstrating compliance with the qualifications
43.11of this subdivision. Upon removal or invalidation of the special plates, either the owner or
43.12purchaser of the motor vehicle shall obtain regular plates for the motor vehicle.
43.13    (d) While the person is an active or retired member of the Minnesota National
43.14Guard, plates issued pursuant to this subdivision may be transferred to another motor
43.15vehicle owned by that individual upon payment of a fee of $5.
43.16    (e) For purposes of this subdivision, "retired member" means an individual placed on
43.17the roll of retired officers or roll of retired enlisted members in the Office of the Adjutant
43.18General under section 192.18 and who is not deceased.
43.19    (f) The commissioner may adopt rules under the Administrative Procedure Act to
43.20govern the issuance and use of the special plates authorized by this subdivision.

43.21    Sec. 12. Minnesota Statutes 2014, section 168.12, subdivision 2d, is amended to read:
43.22    Subd. 2d. Ready Reserve; special plates, rules. (a) The commissioner shall issue
43.23special plates to an applicant who:
43.24    (1) is not eligible for special National Guard plates under subdivision 2c, is a
43.25member of the United States armed forces ready reserve as described in United States
43.26Code, title 10, section 10142 or 10143, or a retired reserve as described in United States
43.27Code, title 10, section 10154, and is an owner of a passenger automobile;
43.28    (2) pays a fee of $10 $12.50 and any other fees required by this chapter;
43.29    (3) pays the registration tax required by this chapter; and
43.30    (4) complies with this chapter and rules governing the registration of motor vehicles
43.31and licensing of drivers.
43.32    (b) The commissioner of veterans affairs shall design the emblem for these special
43.33plates subject to the approval of the commissioner.
43.34    (c) Special plates issued under this subdivision may only be used during the period
43.35that the owner of the motor vehicle is a member of the ready reserve. When the owner is
44.1no longer a member, the special plates must be removed from the motor vehicle by the
44.2owner. If the commissioner receives written notification that an individual is no longer
44.3qualified for these special plates, the commissioner shall invalidate the plates and notify
44.4the individual of this action. The individual may retain the plate only upon demonstrating
44.5compliance with the qualifications of this subdivision. On removal or invalidation of the
44.6special plates, either the owner or purchaser of the motor vehicle shall obtain regular
44.7plates for the motor vehicle. While the owner is a member of the ready reserve, plates
44.8issued under this subdivision may be transferred to another motor vehicle owned by that
44.9individual on paying a fee of $5.
44.10    (d) The commissioner may adopt rules under the Administrative Procedure Act to
44.11govern the issuance and use of the special plates authorized by this subdivision.

44.12    Sec. 13. Minnesota Statutes 2014, section 168.12, subdivision 2e, is amended to read:
44.13    Subd. 2e. Volunteer ambulance attendants; special plates. (a) The commissioner
44.14shall issue special license plates to an applicant who:
44.15    (1) is a volunteer ambulance attendant as defined in section 144E.001, subdivision
44.1615
, and owns a motor vehicle taxed as a passenger automobile;
44.17    (2) pays the registration tax required by this chapter for the motor vehicle;
44.18    (3) pays a fee of $10 $12.50 and any other fees required by this chapter; and
44.19    (4) complies with this chapter and rules governing the registration of motor vehicles
44.20and licensing of drivers.
44.21    (b) An individual may use special plates issued under this subdivision only during
44.22the period that the individual is a volunteer ambulance attendant. When the individual to
44.23whom the special plates were issued ceases to be a volunteer ambulance attendant, the
44.24individual shall remove each set of special plates issued. If the commissioner receives
44.25written notification that an individual is no longer qualified for these special plates, the
44.26commissioner shall invalidate the plates and notify the individual of this action. The
44.27individual may retain the plate only upon demonstrating compliance with the qualifications
44.28of this subdivision. When ownership of the motor vehicle is transferred, the individual
44.29shall remove the special plates from that motor vehicle. On removal or invalidation of the
44.30special plates, the owner or purchaser of the motor vehicle shall obtain regular plates for the
44.31motor vehicle. Special plates issued under this subdivision may be transferred to another
44.32motor vehicle owned by the volunteer ambulance attendant on payment of a fee of $5.
44.33    (c) The commissioner may adopt rules governing the design, issuance, and sale of
44.34the special plates authorized by this subdivision.

45.1    Sec. 14. Minnesota Statutes 2014, section 168.12, subdivision 2g, is amended to read:
45.2    Subd. 2g. Retired firefighters; special plates. (a) The commissioner shall issue
45.3special retired firefighters plates to an applicant who:
45.4(1) is a retired member of a fire department as defined in section 299N.01, subdivision
45.52, has a letter from the fire chief affirming that the applicant is a retired firefighter who
45.6served ten or more years and separated in good standing, and is a registered owner of a
45.7passenger automobile, a one-ton pickup truck, a recreational vehicle, or a motorcycle;
45.8(2) pays a fee of $10 $12.50 for each set of license plates applied for along with
45.9any other fees required by this chapter; and
45.10(3) complies with this chapter and rules governing registration of motor vehicles
45.11and licensing of drivers.
45.12(b) The commissioner shall design the special plate emblem so that it is
45.13distinguishable from the emblem on firefighter special plates issued under subdivision 2b.
45.14(c) On payment of a transfer fee of $5, plates issued under this subdivision may be
45.15transferred to another passenger automobile, one-ton pickup truck, recreational vehicle, or
45.16motorcycle registered to the individual to whom the special plates were issued.
45.17(d) Fees collected under this subdivision must be credited to the vehicle services
45.18operating account in the special revenue fund.
45.19(e) This subdivision is exempt from section 168.1293.

45.20    Sec. 15. Minnesota Statutes 2014, section 168.12, subdivision 5, is amended to read:
45.21    Subd. 5. Additional fee. (a) In addition to any fee otherwise authorized or any tax
45.22otherwise imposed upon any vehicle, the payment of which is required as a condition to
45.23the issuance of any plate or plates, the commissioner shall impose the fee specified in
45.24paragraph (b) that is calculated to cover the cost of manufacturing and issuing the plate
45.25or plates, except for plates issued to disabled veterans as defined in section 168.031 and
45.26plates issued pursuant to section 168.124, 168.125, or 168.27, subdivisions 16 and 17,
45.27for passenger automobiles. The commissioner shall issue graphic design plates only
45.28for vehicles registered pursuant to section 168.017 and recreational vehicles registered
45.29pursuant to section 168.013, subdivision 1g.
45.30    (b) Unless otherwise specified or exempted by statute, the following plate and
45.31validation sticker fees apply for the original, duplicate, or replacement issuance of a
45.32plate in a plate year:
45.33
License Plate
Single
Double
45.34
Regular and Disability
$
4.50 6.25
$
6.00 12.50
45.35
45.36
Special
$
8.50
$
10.00
12.50
46.1
Personalized (Replacement)
$
10.00
$
14.00
46.2
Collector Category
$
13.50
$
15.00
46.3
Emergency Vehicle Display
$
3.00 6.25
$
6.00 12.50
46.4
Utility Trailer Self-Adhesive
$
2.50
46.5
Vertical Motorcycle Plate
$
100.00
NA
46.6
Stickers
46.7
Duplicate year
$
1.00
$
1.00
46.8
International Fuel Tax Agreement
$
2.50
46.9    (c) For vehicles that require two of the categories above, the registrar shall only
46.10charge the higher of the two fees and not a combined total.

46.11    Sec. 16. Minnesota Statutes 2014, section 168.121, subdivision 1, is amended to read:
46.12    Subdivision 1. Issuance and design. Notwithstanding section 168.1293, the
46.13commissioner shall issue special plates remembering victims of impaired drivers to an
46.14applicant who:
46.15(1) is a registered owner of a passenger automobile;
46.16(2) pays a fee of $10 $12.50 for each set of license plates applied for; and
46.17(3) complies with this chapter and rules governing registration of motor vehicles
46.18and licensing of drivers.

46.19    Sec. 17. Minnesota Statutes 2014, section 168.123, subdivision 1, is amended to read:
46.20    Subdivision 1. General requirements; fees. (a) On payment of a fee of $10 $12.50
46.21for each set of two plates, or for a single plate in the case of a motorcycle plate, payment
46.22of the registration tax required by law, and compliance with other applicable laws relating
46.23to vehicle registration and licensing, as applicable, the commissioner shall issue:
46.24(1) special veteran's plates to an applicant who served in the active military service
46.25in a branch of the armed forces of the United States or of a nation or society allied with the
46.26United States in conducting a foreign war, was discharged under honorable conditions,
46.27and is a registered owner of a passenger automobile, recreational motor vehicle, or
46.28one-ton pickup truck, but which is not a commercial motor vehicle as defined in section
46.29169.011, subdivision 16 ; or
46.30(2) a veteran's special motorcycle plate as described in subdivision 2, paragraph (a),
46.31(e), (f), (h), (i), (j), or (m), or another special plate designed by the commissioner to an
46.32applicant who is a registered owner of a motorcycle and meets the criteria listed in this
46.33paragraph and in subdivision 2, paragraph (a), (e), (f), (h), (i), (j), or (m). Plates issued
46.34under this clause must be the same size as regular motorcycle plates. Special motorcycle
46.35license plates issued under this clause are not subject to section 168.1293.
47.1(b) The additional fee of $10 $12.50 is payable for each set of veteran's plates, is
47.2payable only when the plates are issued, and is not payable in a year in which stickers are
47.3issued instead of plates.
47.4(c) The veteran must have a certified copy of the veteran's discharge papers,
47.5indicating character of discharge, at the time of application. If an applicant served in the
47.6active military service in a branch of the armed forces of a nation or society allied with the
47.7United States in conducting a foreign war and is unable to obtain a record of that service
47.8and discharge status, the commissioner of veterans affairs may certify the applicant as
47.9qualified for the veterans' plates provided under this section.

47.10    Sec. 18. Minnesota Statutes 2014, section 168.1235, subdivision 1, is amended to read:
47.11    Subdivision 1. General requirements; fees. (a) The commissioner shall issue a
47.12special plate emblem for each plate to an applicant who:
47.13(1) is a member of a congressionally chartered veterans service organization and
47.14is a registered owner of a passenger automobile, pickup truck, van, or self-propelled
47.15recreational vehicle;
47.16(2) pays the registration tax required by law;
47.17(3) pays a fee of $10 $12.50 for each set of two plates, and any other fees required
47.18by this chapter; and
47.19(4) complies with this chapter and rules governing the registration of motor vehicles
47.20and licensing of drivers.
47.21(b) The additional fee of $10 $12.50 is payable at the time of initial application for
47.22the special plate emblem and when the plates must be replaced or renewed. An applicant
47.23must not be issued more than two sets of special plate emblems for motor vehicles listed
47.24in paragraph (a) and registered to the applicant.
47.25(c) The applicant must present a valid card indicating membership in the American
47.26Legion or Veterans of Foreign Wars.

47.27    Sec. 19. Minnesota Statutes 2014, section 168.1255, subdivision 1, is amended to read:
47.28    Subdivision 1. General requirements and procedures. The commissioner shall
47.29issue special veteran contribution plates or a single motorcycle plate to an applicant who:
47.30    (1) is a veteran, as defined in section 197.447;
47.31    (2) is a registered owner of a passenger automobile as defined in section 168.002,
47.32subdivision 24, recreational vehicle as defined in section 168.002, subdivision 27, one-ton
47.33pickup truck as defined in section 168.002, subdivision 21b, or motorcycle as defined in
47.34section 168.002, subdivision 19;
48.1    (3) pays a fee of $10 $12.50 to cover the costs of handling and manufacturing the
48.2plates;
48.3    (4) pays the registration tax required under section 168.013;
48.4    (5) pays the fees required under this chapter;
48.5    (6) pays an additional onetime World War II memorial contribution of $30, which
48.6the department shall retain until all start-up costs associated with the development and
48.7issuing of the plates have been recovered, after which the commissioner shall deposit
48.8contributions in the World War II donation match account; and
48.9    (7) complies with this chapter and rules governing the registration of motor vehicles
48.10and licensing of drivers.

48.11    Sec. 20. Minnesota Statutes 2014, section 168.128, subdivision 2, is amended to read:
48.12    Subd. 2. Plates. (a) A person who operates a limousine for other than personal use
48.13shall register the motor vehicle as provided in this section. A person who operates a
48.14limousine for personal use may apply for limousine plates.
48.15(b) The commissioner shall issue limousine plates to the registered owner of a
48.16limousine who:
48.17(1) certifies that an insurance policy or policies under section 65B.135, in the
48.18minimum aggregate amount required under that section, is in effect for the entire period
48.19of the registration;
48.20(2) provides the commissioner with proof that the passenger automobile registration
48.21tax and a $10 $12.50 fee have been paid for each limousine receiving limousine plates; and
48.22(3) complies with this chapter and rules governing the registration of motor vehicles
48.23and licensing of drivers.
48.24(c) The limousine plates must be designed to specifically identify the vehicle as a
48.25limousine and must be clearly marked with the letters "LM." Limousine plates may not be
48.26transferred upon sale of the limousine, but may be transferred to another limousine owned
48.27by the same person upon notifying the commissioner and paying a $5 transfer fee.

48.28    Sec. 21. Minnesota Statutes 2014, section 168.1291, subdivision 4, is amended to read:
48.29    Subd. 4. Fees. Despite section 168.12, subdivisions 2b to 2e; 168.123; or 168.129,
48.30the commissioner shall charge a fee of $10 $12.50 for each set of plates issued under
48.31this section.

48.32    Sec. 22. Minnesota Statutes 2014, section 168.1295, subdivision 1, is amended to read:
49.1    Subdivision 1. General requirements and procedures. (a) The commissioner shall
49.2issue state parks and trails plates to an applicant who:
49.3(1) is a registered owner of a passenger automobile, recreational vehicle, one ton
49.4pickup truck, or motorcycle;
49.5(2) pays a fee of $10 $12.50 to cover the costs of handling and manufacturing the
49.6plates;
49.7(3) pays the registration tax required under section 168.013;
49.8(4) pays the fees required under this chapter;
49.9(5) contributes a minimum of $50 annually to the state parks and trails donation
49.10account established in section 85.056; and
49.11(6) complies with this chapter and rules governing registration of motor vehicles
49.12and licensing of drivers.
49.13(b) The state parks and trails plate application must indicate that the contribution
49.14specified under paragraph (a), clause (5), is a minimum contribution to receive the plate
49.15and that the applicant may make an additional contribution to the account.
49.16(c) State parks and trails plates may be personalized according to section 168.12,
49.17subdivision 2a.

49.18    Sec. 23. Minnesota Statutes 2014, section 168.1296, subdivision 1, is amended to read:
49.19    Subdivision 1. General requirements and procedures. (a) The commissioner shall
49.20issue critical habitat plates to an applicant who:
49.21(1) is a registered owner of a passenger automobile or recreational vehicle;
49.22(2) pays a fee of $10 $12.50 to cover the costs of handling and manufacturing the
49.23plates;
49.24(3) pays the registration tax required under section 168.013;
49.25(4) pays the fees required under this chapter;
49.26(5) contributes a minimum of $30 annually to the Minnesota critical habitat private
49.27sector matching account established in section 84.943; and
49.28(6) complies with this chapter and rules governing registration of motor vehicles
49.29and licensing of drivers.
49.30(b) The critical habitat plate application must indicate that the annual contribution
49.31specified under paragraph (a), clause (5), is a minimum contribution to receive the plate
49.32and that the applicant may make an additional contribution to the account.
49.33(c) Owners of recreational vehicles under paragraph (a), clause (1), are eligible
49.34only for special critical habitat license plates for which the designs are selected under
49.35subdivision 2, on or after January 1, 2006.
50.1(d) Special critical habitat license plates, the designs for which are selected under
50.2subdivision 2, on or after January 1, 2006, may be personalized according to section
50.3168.12, subdivision 2a .

50.4    Sec. 24. Minnesota Statutes 2014, section 168.1297, subdivision 1, is amended to read:
50.5    Subdivision 1. General requirements and procedures. The commissioner shall
50.6issue special "Rotary member" plates to an applicant who:
50.7(1) is a registered owner of a passenger automobile;
50.8(2) pays a fee of $10 $12.50 to cover the costs of handling and manufacturing the
50.9plates;
50.10(3) pays the registration tax required under section 168.013;
50.11(4) pays the fees required under this chapter;
50.12(5) submits proof to the commissioner that the applicant is a member of Rotary
50.13International; and
50.14(6) complies with this chapter and rules governing registration of motor vehicles
50.15and licensing of drivers.

50.16    Sec. 25. Minnesota Statutes 2014, section 168.1298, subdivision 1, is amended to read:
50.17    Subdivision 1. General requirements and procedures. (a) The commissioner shall
50.18issue special "Support Our Troops" license plates to an applicant who:
50.19(1) is an owner of a passenger automobile, one-ton pickup truck, recreational
50.20vehicle, or motorcycle;
50.21(2) pays a fee of $10 $12.50 to cover the costs of handling and manufacturing the
50.22plates;
50.23(3) pays the registration tax required under section 168.013;
50.24(4) pays the fees required under this chapter;
50.25(5) contributes a minimum of $30 annually to the Minnesota "Support Our Troops"
50.26account established in section 190.19; and
50.27(6) complies with laws and rules governing registration and licensing of vehicles
50.28and drivers.
50.29(b) The license application under this section must indicate that the annual
50.30contribution specified under paragraph (a), clause (5), is a minimum contribution to receive
50.31the plates and that the applicant may make an additional contribution to the account.

50.32    Sec. 26. Minnesota Statutes 2014, section 168.1299, subdivision 1, is amended to read:
51.1    Subdivision 1. Issuance. Notwithstanding section 168.1293, the commissioner shall
51.2issue special Minnesota golf plates or a single motorcycle plate to an applicant who:
51.3(1) is a registered owner of a passenger automobile, one-ton pickup truck,
51.4motorcycle, or recreational vehicle;
51.5(2) pays a fee of $10 $12.50 and any other fees required by this chapter;
51.6(3) contributes a minimum of $30 annually after January 1, 2017, to the Minnesota
51.7Section PGA Foundation account; and
51.8(4) complies with this chapter and rules governing registration of motor vehicles
51.9and licensing of drivers.

51.10    Sec. 27. Minnesota Statutes 2014, section 168.27, subdivision 22, is amended to read:
51.11    Subd. 22. Dealer license for trailers, motorized bicycles; plates, fees;
51.12exemptions. Any person, copartnership, or corporation having a permanent enclosed
51.13commercial building or structure either owned in fee or leased and engaged in the
51.14business, either exclusively or in addition to any other occupation, of selling motorized
51.15bicycles, boat trailers, horse trailers, or snowmobile trailers, may apply to the registrar
51.16for a dealer's license. Upon payment of a $10 fee the registrar shall license the applicant
51.17as a dealer for the remainder of the calendar year in which the application was received.
51.18The license may be renewed on or before the second day of January of each succeeding
51.19year by payment of a fee of $10. The registrar shall issue to each dealer, upon request
51.20of the dealer, dealer plates as provided in subdivision 16 upon payment of $5 $6.25 for
51.21each plate, and the plates may be used in the same manner and for the same purposes as
51.22is provided in subdivision 16. Except for motorized bicycle dealers, the registrar shall
51.23also issue to the dealer, upon request of the dealer, "in-transit" plates as provided in
51.24subdivision 17 upon payment of a fee of $5 for each plate. This subdivision does not
51.25abrogate any of the provisions of this section relating to the duties, responsibilities, and
51.26requirements of persons, copartnerships, or corporations engaged in the business, either
51.27exclusively or in addition to other occupations, of selling motor vehicles or manufactured
51.28homes, except that a seller of boat trailers, utility trailers, or snowmobile trailers who
51.29is licensed under this subdivision is not required to have a contract or franchise with a
51.30manufacturer or distributor of new boat trailers, utility trailers, or new snowmobile trailers
51.31the seller proposes to sell, broker, wholesale, or auction. This section does not require a
51.32manufacturer of snowmobile trailers whose manufacturing facility is located outside of
51.33the metropolitan area as defined in section 473.121 to have a dealer's license to transport
51.34the snowmobile trailers to dealers or retail outlets in the state.

52.1    Sec. 28. Minnesota Statutes 2014, section 168.33, subdivision 2, is amended to read:
52.2    Subd. 2. Deputy registrars. (a) The commissioner may appoint, and for cause
52.3discontinue, a deputy registrar for any statutory or home rule charter city as the public
52.4interest and convenience may require, without regard to whether the county auditor of
52.5the county in which the city is situated has been appointed as the deputy registrar for the
52.6county or has been discontinued as the deputy registrar for the county, and without regard
52.7to whether the county in which the city is situated has established a county license bureau
52.8that issues motor vehicle licenses as provided in section 373.32.
52.9(b) The commissioner may appoint, and for cause discontinue, a deputy registrar
52.10for any statutory or home rule charter city as the public interest and convenience may
52.11require, if the auditor for the county in which the city is situated chooses not to accept
52.12appointment as the deputy registrar for the county or is discontinued as a deputy registrar,
52.13or if the county in which the city is situated has not established a county license bureau
52.14that issues motor vehicle licenses as provided in section 373.32.
52.15(c) The commissioner may appoint, and for cause discontinue, the county auditor of
52.16each county as a deputy registrar.
52.17(d) Despite any other provision, a person other than a county auditor or a director
52.18of a county license bureau, who was appointed by the registrar before August 1, 1976,
52.19as a deputy registrar for any statutory or home rule charter city, may continue to serve
52.20as deputy registrar and may be discontinued for cause only by the commissioner. The
52.21county auditor who appointed the deputy registrars is responsible for the acts of deputy
52.22registrars appointed by the auditor.
52.23(e) Each deputy, before entering upon the discharge of duties, shall take and
52.24subscribe an oath to faithfully discharge the duties and to uphold the laws of the state.
52.25(f) If a deputy registrar appointed under this subdivision is not an officer or employee
52.26of a county or statutory or home rule charter city, the deputy shall in addition give bond to
52.27the state in the sum of $10,000, or a larger sum as may be required by the commissioner,
52.28conditioned upon the faithful discharge of duties as deputy registrar.
52.29(g) A corporation governed by chapter 302A or 317A may be appointed a deputy
52.30registrar. Upon application by an individual serving as a deputy registrar and the giving of
52.31the requisite bond as provided in this subdivision, personally assured by the individual or
52.32another individual approved by the commissioner, a corporation named in an application
52.33then becomes the duly appointed and qualified successor to the deputy registrar.
52.34(h) Each deputy registrar appointed under this subdivision shall keep and maintain
52.35office locations approved by the commissioner for the registration of vehicles and the
52.36collection of taxes and fees on vehicles.
53.1(i) The deputy registrar shall keep records and make reports to the commissioner as
53.2the commissioner requires. The records must be maintained at the offices of the deputy
53.3registrar. The records and offices of the deputy registrar must at all times be open to the
53.4inspection of the commissioner or the commissioner's agents. The deputy registrar shall
53.5report to the commissioner by the next working day following receipt all registrations
53.6made and taxes and fees collected by the deputy registrar.
53.7(j) The filing fee fees imposed under subdivision 7, paragraph (a), clauses (1) and
53.8(3), must be deposited in the treasury of the place for which appointed or, if not a public
53.9official, a deputy shall retain the filing fee fees, but the registration tax and, any additional
53.10fees for delayed registration the deputy registrar has collected, and the surcharge imposed
53.11under subdivision 7, paragraph (a), clause (2), the deputy registrar shall deposit by the next
53.12working day following receipt in an approved state depository to the credit of the state
53.13through the commissioner of management and budget. The place for which the deputy
53.14registrar is appointed through its governing body must provide the deputy registrar with
53.15facilities and personnel to carry out the duties imposed by this subdivision if the deputy
53.16is a public official. In all other cases, the deputy shall maintain a suitable facility for
53.17serving the public.

53.18    Sec. 29. Minnesota Statutes 2014, section 168.33, subdivision 7, is amended to read:
53.19    Subd. 7. Filing fees and surcharge; allocations. (a) In addition to all other
53.20statutory fees and taxes, a filing fee of:
53.21(1) a $6 filing fee is imposed on every vehicle registration renewal, excluding pro
53.22rate transactions; and
53.23(2) a $10 surcharge is imposed on the fee for every vehicle registration renewal,
53.24excluding pro rate transactions; and
53.25(3) a $10 filing fee is imposed on every other type of vehicle transaction, including
53.26motor carrier fuel tax licenses under sections 168D.05 and 168D.06, and pro rate
53.27transactions.
53.28(b) Notwithstanding paragraph (a):
53.29    (1) a filing fee may not be charged for a document returned for a refund or for
53.30a correction of an error made by the Department of Public Safety, a dealer, or a deputy
53.31registrar; and
53.32(2) no filing fee or other fee may be charged for the permanent surrender of a title
53.33for a vehicle.
53.34(c) The filing fee and surcharge must be shown as a separate item on all registration
53.35renewal notices sent out by the commissioner.
54.1(d) The statutory fees and taxes, and the filing fees and surcharge imposed under
54.2paragraph (a) may be paid by credit card or debit card. The deputy registrar may collect a
54.3surcharge on the statutory fees, taxes, statutory surcharge, and filing fee not greater than
54.4the cost of processing a credit card or debit card transaction, in accordance with emergency
54.5rules established by the commissioner of public safety. The surcharge authorized by this
54.6paragraph must be used to pay the cost of processing credit and debit card transactions.
54.7(e) The fees and surcharge collected under this subdivision paragraph (a) by the
54.8department must be allocated as follows:
54.9(1) of the fees collected under paragraph (a), clause (1):
54.10(i) $4.50 must be deposited in the vehicle services operating account; and
54.11(ii) $1.50 must be deposited:
54.12(A) in the driver and vehicle services technology account until sufficient funds have
54.13been deposited in that account to cover all costs of administration, development, and
54.14initial full deployment of the driver and vehicle services information system; and
54.15(B) after completion of the deposit of funds under subitem (A) in the vehicle
54.16services operating account; and
54.17(2) of the surcharge collected under paragraph (a), clause (2):
54.18(i) 50 percent must be deposited in the small city streets and bridges account under
54.19section 174.54, subdivision 1; and
54.20(ii) 50 percent must be deposited in the larger city streets and bridges account under
54.21section 174.54, subdivision 2; and
54.22(3) of the fees collected under paragraph (a), clause (2) (3):
54.23(i) $3.50 must be deposited in the general fund;
54.24(ii) $5.00 must be deposited in the vehicle services operating account; and
54.25(iii) $1.50 must be deposited:
54.26(A) in the driver and vehicle services technology account until sufficient funds have
54.27been deposited in that account to cover all costs of administration, development, and
54.28initial full deployment of the driver and vehicle services information system; and
54.29(B) after completion of the deposit of funds under subitem (A) in the vehicle services
54.30operating account.
54.31EFFECTIVE DATE.Paragraph (a), clause (3), is effective the day following final
54.32enactment. The remainder of the section is effective July 1, 2015.

54.33    Sec. 30. Minnesota Statutes 2014, section 168.62, subdivision 3, is amended to read:
54.34    Subd. 3. Special plates or certificate; fee; proceeds to highway user fund vehicle
54.35services operating account. At the same time that an owner or operator of intercity buses
55.1registers them in Minnesota and obtains number plates therefor, the owner or operator
55.2shall apply for special identification plates or certificates for the remainder of that fleet
55.3of intercity buses. The registrar of motor vehicles shall design an appropriate plate or
55.4identification certificate for this purpose which shall be issued upon the payment of a
55.5fee of $10 $12.50 covering each intercity bus so identified. The proceeds of such fees
55.6shall be deposited to the credit of the vehicle services operating account under section
55.7299A.705 , subdivision 1. No intercity bus shall at any time be operated in the state of
55.8Minnesota without either Minnesota number plates or special identification plates or
55.9certificates issued as herein provided.

55.10    Sec. 31. Minnesota Statutes 2014, section 168A.07, is amended by adding a
55.11subdivision to read:
55.12    Subd. 3. Fees. The filing fee to create a conditional registration shall conform with
55.13the fee provided in section 168.33, subdivision 7, paragraph (a), clause (3). A subsequent
55.14removal and clearing of a conditional registration is considered a separate transaction and
55.15requires payment of an additional filing fee of the same amount, provided the removal and
55.16clearing was initiated by a motor vehicle dealer licensed under section 168.27.

55.17    Sec. 32. [174.54] CITY STREETS AND BRIDGES ACCOUNTS.
55.18    Subdivision 1. Small city streets and bridges account. A small city streets and
55.19bridges account is created as a special revenue account and established in the state
55.20treasury, consisting of money allotted, appropriated, or transferred through gift or grant
55.21for the account. Money in the account must be appropriated to the commissioner of
55.22transportation by law and apportioned among all the cities in the state that are not eligible
55.23to receive municipal state aid and do not receive municipal state aid. The commissioner
55.24shall apportion the money so that each city receives of the total amount the percentage that
55.25its population bears to the total population of small cities in this state. Money apportioned
55.26under this section must be used for construction, reconstruction, improvement, operations,
55.27and maintenance of city streets and bridges.
55.28    Subd. 2. Larger city streets and bridges account. A larger city streets and
55.29bridges account is created as a special revenue account and established in the state
55.30treasury, consisting of money allotted, appropriated, or transferred through gift or grant
55.31for the account. Money in the account must be appropriated to the commissioner of
55.32transportation by law and apportioned among all the cities in the state that are eligible
55.33to receive municipal state aid. The commissioner shall apportion: (1) 50 percent of the
55.34money so that each city receives of that amount the percentage that its population bears to
56.1the total population of all cities that are eligible to receive municipal state aid; and (2)
56.250 percent of the money so that each city receives of that amount the percentage that its
56.3money needs, as determined by the commissioner under section 162.13, subdivision 3,
56.4bears to the total money needs of all cities that are eligible to receive municipal state aid.
56.5Money apportioned under this section must be used for construction, reconstruction,
56.6improvement, operations, and maintenance of city streets and bridges.

56.7    Sec. 33. Minnesota Statutes 2014, section 297A.815, subdivision 3, is amended to read:
56.8    Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this
56.9subdivision, "net revenue" means an amount equal to the revenues, including interest
56.10and penalties, collected under this section, during the fiscal year; less $32,000,000
56.11$22,000,000 in each fiscal year.
56.12    (b) On or before June 30 of each fiscal year, the commissioner of revenue shall
56.13estimate the amount of the net revenue revenues for the current fiscal year, including
56.14interest and penalties collected during the fiscal year under this section.
56.15    (c) On or after July 1 of the subsequent fiscal year, the commissioner of management
56.16and budget shall transfer the net revenue revenues as estimated in paragraph (b) from the
56.17general fund, as follows:
56.18    (1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to
56.19the county state-aid highway fund.
56.20    (d) Notwithstanding any other law to the contrary, the commissioner of transportation
56.21shall allocate the funds transferred under this clause paragraph (b) to the counties in the
56.22metropolitan area, as defined in section 473.121, subdivision 4, excluding the counties of
56.23Hennepin and Ramsey, so that each county shall receive of such amount the percentage
56.24that its population, as defined in section 477A.011, subdivision 3, estimated or established
56.25by July 15 of the year prior to the current calendar year, bears to the total population of the
56.26counties receiving funds under this clause; and
56.27    (2) the remainder to the greater Minnesota transit account. For the purposes of the
56.28calculation in this paragraph, the population of Hennepin County shall first be multiplied
56.29by 0.25, and the population of Ramsey County shall first be multiplied by 0.5.
56.30(e) The revenues transferred under this subdivision do not include the revenues,
56.31including interest and penalties, generated by the sales tax imposed under section
56.32297A.62, subdivision 1a, which must be deposited as provided under the Minnesota
56.33Constitution, article XI, section 15.
56.34EFFECTIVE DATE.Paragraphs (a) through (c) are effective January 1, 2016, and
56.35paragraph (d) is effective the day following final enactment.

57.1    Sec. 34. Minnesota Statutes 2014, section 297B.03, is amended to read:
57.2297B.03 EXEMPTIONS.
57.3    Subdivision 1. Scope. There is The purchases or acquisitions of a motor vehicle
57.4listed in this section are specifically exempted from the provisions of this chapter and from
57.5computation of the amount of tax imposed by it the following:.
57.6    Subd. 2. Federal government. (1) The purchase or use, including use under a
57.7lease purchase agreement or installment sales contract made pursuant to section 465.71,
57.8of any motor vehicle by the United States and its agencies and instrumentalities and
57.9by any person described in and subject to the conditions provided in section 297A.67,
57.10subdivision 11
; is exempt.
57.11    Subd. 3. Purchased while a resident of another state. (2) The purchase or use
57.12of any motor vehicle by any person who was a resident of another state or country at the
57.13time of the purchase and who subsequently becomes a resident of Minnesota, provided
57.14the purchase occurred more than 60 days prior to the date such person began residing in
57.15the state of Minnesota and the motor vehicle was registered in the person's name in the
57.16other state or country; is exempt.
57.17    Subd. 4. Interstate motor carriers. (3) The purchase or use of any motor vehicle
57.18by any person making a valid election to be taxed under the provisions of section 297A.90;
57.19is exempt.
57.20    Subd. 5. Sale of a business. (4) The purchase or use of any motor vehicle previously
57.21registered in the state of Minnesota when such transfer constitutes a transfer within the
57.22meaning of section 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or
57.231563(a) of the Internal Revenue Code; is exempt.
57.24    Subd. 6. Leased vehicles for interstate commerce. (5) The purchase or use of any
57.25vehicle owned by a resident of another state and leased to a Minnesota-based private or
57.26for-hire carrier for regular use in the transportation of persons or property in interstate
57.27commerce provided the vehicle is titled in the state of the owner or secured party, and
57.28that state does not impose a sales tax or sales tax on motor vehicles used in interstate
57.29commerce; is exempt.
57.30    Subd. 7. Use in automotive training programs. (6) The purchase or use of a motor
57.31vehicle by a private nonprofit or public educational institution for use as an instructional
57.32aid in automotive training programs operated by the institution. "Automotive training
57.33programs" includes motor vehicle body and mechanical repair courses but does not
57.34include driver education programs; is exempt.
57.35    Subd. 8. Ambulance and emergency response. (7) The purchase of a motor
57.36vehicle by an ambulance service licensed under section 144E.10 when that vehicle is
58.1equipped and specifically intended for emergency response or for providing ambulance
58.2service; is exempt.
58.3    Subd. 9. Library use. (8) The purchase of a motor vehicle by or for a public
58.4library, as defined in section 134.001, subdivision 2, as a bookmobile or library delivery
58.5vehicle; is exempt.
58.6    Subd. 10. Ready-mix concrete truck. (9) The purchase of a ready-mixed
58.7ready-mix concrete truck; is exempt.
58.8    Subd. 11. Local government road maintenance. (10) The purchase or use of a
58.9motor vehicle by a town for use exclusively for road maintenance, including snowplows
58.10and dump trucks, but not including automobiles, vans, or pickup trucks; is exempt.
58.11    Subd. 12. Charitable use. (11) The purchase or use of a motor vehicle by a
58.12corporation, society, association, foundation, or institution organized and operated
58.13exclusively for charitable, religious, or educational purposes, except a public school,
58.14university, or library is exempt, but only if the vehicle is:
58.15    (i) (1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or
58.16a passenger automobile, as defined in section 168.002, if the automobile is designed and
58.17used for carrying more than nine persons including the driver; and
58.18    (ii) (2) intended to be used primarily to transport tangible personal property
58.19or individuals, other than employees, to whom the organization provides service in
58.20performing its charitable, religious, or educational purpose;.
58.21    Subd. 13. Transit use. (12) The purchase of a motor vehicle for use by a transit
58.22provider exclusively to provide transit service is exempt if the transit provider is either (i)
58.23receiving financial assistance or reimbursement under section 174.24 or 473.384, or (ii)
58.24operating under section 174.29, 473.388, or 473.405; is exempt.
58.25    Subd. 14. Job opportunity building zone. (13) The purchase or use of a motor
58.26vehicle by a qualified business, as defined in section 469.310, located in a job opportunity
58.27building zone, if the motor vehicle is principally garaged in the job opportunity building
58.28zone and is primarily used as part of or in direct support of the person's operations carried
58.29on in the job opportunity building zone. The exemption under this clause applies to sales,
58.30if the purchase was made and delivery received during the duration of the job opportunity
58.31building zone. The exemption under this clause also applies to any local sales and use
58.32tax; is exempt.
58.33    Subd. 15. Certain purchases from a nonprofit. (14) The purchase of a leased
58.34vehicle by the lessee who was a participant in a lease-to-own program is exempt if the
58.35purchase is from a charitable organization that is:
58.36    (i) (1) described in section 501(c)(3) of the Internal Revenue Code; and
59.1    (ii) (2) licensed as a motor vehicle lessor under section 168.27, subdivision 4; and.
59.2    Subd. 16. Mobile medical unit. (15) The purchase of a motor vehicle used
59.3exclusively as a mobile medical unit for the provision of medical or dental services by a
59.4federally qualified health center, as defined under title 19 of the Social Security Act, as
59.5amended by Section 4161 of the Omnibus Budget Reconciliation Act of 1990 is exempt.
59.6EFFECTIVE DATE.This section is effective for sales and purchases made after
59.7June 30, 2014.

59.8    Sec. 35. Minnesota Statutes 2014, section 297B.09, subdivision 1, is amended to read:
59.9    Subdivision 1. Deposit of revenues. (a) Money collected and received under this
59.10chapter must be deposited as provided in this subdivision.
59.11    (b) 60 58 percent of the money collected and received must be deposited in the
59.12highway user tax distribution fund, 36 34 percent must be deposited in the metropolitan
59.13area transit account under section 16A.88, and four eight percent must be deposited in the
59.14greater Minnesota transit account under section 16A.88.
59.15(c) It is the intent of the legislature that the allocations under paragraph (b) remain
59.16unchanged for fiscal year 2012 and all subsequent fiscal years.

59.17    Sec. 36. CITY PARKING FACILITY FEE.
59.18    Subdivision 1. Definition. "Parking facility" means a parking area or structure
59.19having parking spaces at which motor vehicles are permitted to park for a fee, whether
59.20publicly or privately owned, but does not include residential parking spaces or parking
59.21spaces on a public street, the use of which is regulated by parking meters.
59.22    Subd. 2. Authorization to impose the fee. (a) The city of Minneapolis may
59.23impose by ordinance a fee to be paid by the owner of each parking space located in a
59.24parking facility within an area in the city of Minneapolis described as follows: west of the
59.25Mississippi River, west of Interstate Highway 35W, north or east of Interstate Highway
59.2694, and south of Plymouth Avenue.
59.27(b) The city of St. Paul may impose by ordinance a fee to be paid by the owner of each
59.28parking space located in a parking facility within an area in the city of St. Paul described
59.29as follows: north of the Mississippi River, west of the Lafayette bridge parking lots, south
59.30of Interstate Highway 35E and Interstate Highway 94, and east of Chestnut Street.
59.31    Subd. 3. Amount of fee. The amount of the fee may be uniform throughout the
59.32district, or it may vary depending upon the nature and structure of the parking facility,
59.33zoning, location, or other reasonable factors determined by the city.
60.1    Subd. 4. Administration of fee. A city imposing a parking fee on a parking facility
60.2under this section shall administer the fee locally. A city may provide by ordinance that
60.3the payment of the parking facility fee be made on a monthly, quarterly, or annual basis.
60.4    Subd. 5. Eligible uses of proceeds. Proceeds of the parking facility fee may be
60.5utilized by the city imposing the fee for any eligible purpose under this section:
60.6(1) pedestrian improvements, including, but not limited to, sidewalks, trees, planters,
60.7landscaping, benches, lighting, trash receptacles, signage, wayfinding, and informational
60.8kiosks;
60.9(2) public plazas, including, but not limited to, improvements, operations,
60.10maintenance, and programming, to include recreational and entertainment activities
60.11designed to promote enjoyment of the city for Minnesotans and tourists of all ages. The
60.12city of Minneapolis may designate proceeds for this purpose for downtown, or specifically
60.13for Nicollet Mall, Peavey Plaza, or Downtown East Commons, or other similar locations.
60.14The city of St. Paul may designate proceeds for this purpose for downtown, or specifically
60.15for Rice Park, Mears Park, Wacouta Commons, Kellogg Park, Pedro Park, Central Station
60.16Plaza, Cleveland Circle, or other similar locations; and
60.17(3) transit and bicycle facilities, including, but not limited to:
60.18(i) planning, design, engineering, property acquisition, and construction of the
60.19downtown portion of a transit line or bicycle facility;
60.20(ii) maintaining and acquiring equipment, transit vehicles, and related facilities, such
60.21as maintenance facilities, that need not be located in the parking facilities fee area;
60.22(iii) acquiring, improving, or constructing transit stations; and
60.23(iv) acquiring or improving public space, including the construction and installation
60.24of improvements to streets and sidewalks, decorative lighting and surfaces, and plantings
60.25related to the downtown portion of a transit line or bicycle facility.
60.26EFFECTIVE DATE.Under Minnesota Statutes, section 645.023, subdivision 1,
60.27this section is effective on July 1, 2015, without the requirement of local approval.

60.28    Sec. 37. REPEALER.
60.29Minnesota Statutes 2014, section 161.081, subdivision 3, is repealed.
60.30EFFECTIVE DATE.This section is effective July 1, 2015.

60.31ARTICLE 7
60.32EFFICIENCY MEASURES

60.33    Section 1. Minnesota Statutes 2014, section 16E.15, subdivision 2, is amended to read:
61.1    Subd. 2. Software sale fund. (a) Except as provided in paragraph paragraphs (b)
61.2and (c), proceeds of from the sale or licensing of software products or services by the chief
61.3information officer must be credited to the MN.IT services revolving fund. If a state
61.4agency other than the Office of MN.IT Services has contributed to the development of
61.5software sold or licensed under this section, the chief information officer may reimburse
61.6the agency by discounting computer services provided to that agency.
61.7(b) Proceeds of from the sale or licensing of software products or services developed
61.8by the Pollution Control Agency, or custom developed by a vendor for the agency, must be
61.9credited to the environmental fund.
61.10(c) Proceeds from the sale or licensing of software products or services developed
61.11by the Department of Transportation, or custom developed by a vendor for the agency,
61.12using trunk highway funds, must be credited to the trunk highway fund.

61.13    Sec. 2. Minnesota Statutes 2014, section 161.088, subdivision 5, is amended to read:
61.14    Subd. 5. Project selection process; criteria. (a) The commissioner shall establish a
61.15process for identification, evaluation, and selection of projects under the program.
61.16(b) As part of the project selection process, the commissioner shall annually accept
61.17recommendations on candidate projects from area transportation partnerships and other
61.18interested stakeholders in each Department of Transportation district. For each candidate
61.19project identified under this paragraph, the commissioner shall determine eligibility,
61.20classify, and if appropriate, evaluate the project for the program.
61.21(c) Project evaluation and prioritization must be performed on the basis of objective
61.22criteria, which must include:
61.23(1) a return on investment measure that provides for comparison across eligible
61.24projects;
61.25(2) measurable impacts on commerce and economic competitiveness;
61.26(3) efficiency in the movement of freight, including but not limited to:
61.27(i) measures of annual average daily traffic and commercial vehicle miles traveled,
61.28which may include data near the project location on that trunk highway or on connecting
61.29trunk and local highways; and
61.30(ii) measures of congestion or travel time reliability, which may be within or near
61.31the project limits, or both;
61.32(4) improvements to traffic safety;
61.33(5) connections to regional trade centers, local highway systems, and other
61.34transportation modes;
62.1(6) the extent to which the project addresses multiple transportation system policy
62.2objectives and principles; and
62.3(7) support and consensus for the project among members of the surrounding
62.4community; and
62.5(8) the extent to which land has been acquired for the project.
62.6(d) As part of the project selection process, the commissioner may divide funding
62.7to be separately available among projects within each classification under subdivision 3,
62.8and may apply separate or modified criteria among those projects falling within each
62.9classification.

62.10    Sec. 3. Minnesota Statutes 2014, section 161.20, is amended by adding a subdivision
62.11to read:
62.12    Subd. 3a. Transfer of appropriations. With the approval of the commissioner of
62.13management and budget, the commissioner of transportation may transfer unencumbered
62.14balances among appropriations from the trunk highway fund and the state airports fund.
62.15No transfer may be made from appropriations for state road construction, for operations
62.16and maintenance, or for debt service. Transfers under this paragraph may not be made
62.17between funds. Transfers under this paragraph must be reported immediately to the
62.18chairs and ranking minority members of the legislative committees and divisions with
62.19jurisdiction over transportation finance.
62.20EFFECTIVE DATE.This section is effective the day following final enactment.

62.21    Sec. 4. [161.225] LOANS FOR LAND ACQUISITION FOR HIGHWAY
62.22PROJECTS.
62.23    Subdivision 1. Account established. The state right-of-way acquisition loan
62.24account is created in the trunk highway fund for the purposes specified in this section.
62.25Money in the account is annually appropriated to the commissioner and does not lapse.
62.26Interest from the investment of money in this account must be deposited in the state
62.27right-of-way acquisition loan account.
62.28    Subd. 2. Loans. (a) The commissioner may make loans to counties, towns, and
62.29statutory and home rule charter cities to purchase property within the right-of-way of
62.30a state trunk highway shown on an official map adopted pursuant to section 394.361
62.31
or 462.359, or to purchase property within the proposed right-of-way of a principal or
62.32intermediate arterial highway. The loans shall be made from the fund established under this
62.33subdivision for purchases approved by the commissioner. The loans shall bear no interest.
62.34(b) The commissioner shall make loans only to:
63.1(1) accelerate the acquisition of primarily undeveloped property when there
63.2is a reasonable probability that the property will increase in value before highway
63.3construction, and to update an expired environmental impact statement on a project for
63.4which the right-of-way is being purchased;
63.5(2) avert the imminent conversion or the granting of approvals which would allow
63.6the conversion of property to uses which would jeopardize its availability for highway
63.7construction;
63.8(3) advance planning and environmental activities on highest priority major
63.9metropolitan river crossing projects under the transportation development guide chapter
63.10policy plan; or
63.11(4) take advantage of open market opportunities when developed properties become
63.12available for sale, provided all parties involved are agreeable to the sale and funds are
63.13available.
63.14(c) The commissioner shall not make loans to purchase property at a price which
63.15exceeds the fair market value of the property or which includes the costs of relocating or
63.16moving persons or property. The eminent domain process may be used to settle differences
63.17of opinion as to fair market value, provided all parties agree to the process.
63.18(d) A private property owner may elect to receive the purchase price either
63.19in a lump sum or in not more than four annual installments without interest on the
63.20deferred installments. If the purchase agreement provides for installment payments,
63.21the commissioner shall make the loan in installments corresponding to those in the
63.22purchase agreement. The recipient of an acquisition loan shall convey the property for the
63.23construction of the highway at the same price which the recipient paid for the property. The
63.24price may include the costs of preparing environmental documents that were required for
63.25the acquisition and that were paid for with money that the recipient received from the loan
63.26fund. Upon notification by the commissioner that the plan to construct the highway has been
63.27abandoned or the anticipated location of the highway has changed, the recipient shall sell
63.28the property at market value in accordance with the procedures required for the disposition
63.29of the property. All rents and other money received because of the recipient's ownership
63.30of the property and all proceeds from the conveyance or sale of the property shall be paid
63.31to the commissioner. If a recipient is not permitted to include in the conveyance price the
63.32cost of preparing environmental documents that were required for the acquisition, then the
63.33recipient is not required to repay the commissioner an amount equal to 40 percent of the
63.34money received from the loan fund and spent in preparing the environmental documents.
64.1(e) For administration of the loan program, the commissioner may expend from the
64.2fund each year an amount no greater than three percent of the amount of the proceeds for
64.3that year.
64.4    Subd. 3. Loans for acquisition and relocation. (a) The commissioner may
64.5make loans to acquiring authorities within the metropolitan area to purchase homestead
64.6property located in a proposed state trunk highway right-of-way or project, and to provide
64.7relocation assistance. Acquiring authorities are authorized to accept the loans and to
64.8acquire the property. Except as provided in this subdivision, the loans shall be made as
64.9provided in subdivision 2. Loans shall be in the amount of the fair market value of the
64.10homestead property plus relocation costs and less salvage value. Before construction of
64.11the highway begins, the acquiring authority shall convey the property to the commissioner
64.12at the same price it paid, plus relocation costs and less its salvage value. Acquisition and
64.13assistance under this subdivision must conform to sections 117.50 to 117.56.
64.14(b) The commissioner may make loans only when:
64.15(1) the owner of affected homestead property requests acquisition and relocation
64.16assistance from an acquiring authority;
64.17(2) federal or state financial participation is not available;
64.18(3) the owner is unable to sell the homestead property at its appraised market value
64.19because the property is located in a proposed state trunk highway right-of-way or project as
64.20indicated on an official map or plat adopted under section 160.085, 394.361, or 462.359; and
64.21(4) the commissioner agrees to and approves the fair market value of the homestead
64.22property, which approval shall not be unreasonably withheld.
64.23(c) For purposes of this subdivision, the following terms have the meanings given
64.24them:
64.25(1) "acquiring authority" means counties, towns, and statutory and home rule
64.26charter cities;
64.27(2) "homestead property" means: (i) a single-family dwelling occupied by the
64.28owner, and the surrounding land, not exceeding a total of ten acres; or (ii) a manufactured
64.29home, as defined in section 327B.01, subdivision 13; and
64.30(3) "salvage value" means the probable sale price of the dwelling and other property
64.31that is severable from the land if offered for sale on the condition that it be removed from
64.32the land at the buyer's expense, allowing a reasonable time to find a buyer with knowledge
64.33of the possible uses of the property, including separate use of serviceable components and
64.34scrap when there is no other reasonable prospect of sale.
64.35EFFECTIVE DATE.This section is effective January 1, 2016.

65.1    Sec. 5. Minnesota Statutes 2014, section 161.231, is amended to read:
65.2161.231 APPROPRIATION; PROCEEDS FROM LEASED STATE
65.3PROPERTY.
65.4There is appropriated annually from the fund or account in the state treasury to which
65.5the rental money from the sale, lease, conveyance, or disposal of state leased property
65.6is credited a sufficient amount of money to carry out the state's obligations under the
65.7provisions of sections 15.16, 117.135, 117.226, 161.16, 161.202, 161.23, subdivision 3,
65.8161.24, 161.241, 161.43, 161.433, 161.44, 161.442, and 272.68, subdivision 3, including
65.9the inventorying, marketing, and property management activities required to sell, lease,
65.10rent, permit, convey, or otherwise dispose of the land or the interest in the land. At the
65.11discretion of the commissioner of transportation, money in the account at the end of each
65.12biennium may cancel to the trunk highway fund.

65.13    Sec. 6. Minnesota Statutes 2014, section 161.46, subdivision 2, is amended to read:
65.14    Subd. 2. Relocation of facilities; reimbursement. (a) Whenever the commissioner
65.15shall determine the relocation of any utility facility is necessitated by the construction of a
65.16project on the routes of federally aided state trunk highways, including urban extensions
65.17thereof, which routes are included within the National System of Interstate Highways, the
65.18owner or operator of such utility facility shall relocate the same in accordance with the
65.19order of the commissioner. After the completion of such relocation the cost thereof shall
65.20be ascertained and paid by the state out of trunk highway funds; provided, however, the
65.21amount to be paid by the state for such reimbursement shall not exceed the amount on
65.22which the federal government bases its reimbursement for said interstate system.
65.23(b) Notwithstanding paragraph (a), any utility facility installed after August 1, 2015,
65.24is not eligible for relocation reimbursement.

65.25    Sec. 7. Minnesota Statutes 2014, section 168.013, subdivision 1g, is amended to read:
65.26    Subd. 1g. Recreational vehicle. (a) Self-propelled recreational vehicles shall must
65.27be separately licensed and taxed annually on the basis of total gross weight and. The
65.28tax shall must be graduated according to the Minnesota base rate schedule prescribed
65.29in subdivision 1e, but in no event less than $20, except as otherwise provided in this
65.30subdivision.
65.31(b) For all self-propelled recreational vehicles, the tax for the ninth and succeeding
65.32years of vehicle life shall be is 75 percent of the tax imposed in the Minnesota base rate
65.33schedule.
66.1(c) Towed recreational vehicles shall must be separately licensed and taxed under
66.2either one of the following, as determined by the vehicle owner: (1) annually on the basis
66.3of total gross weight at 30 percent of the Minnesota base rate prescribed in subdivision 1e
66.4but ; or (2) once every three years on the basis of total gross weight at 90 percent of the
66.5Minnesota base rate prescribed in subdivision 1e, provided that the filing fee under section
66.6168.33, subdivision 7, paragraph (a), is multiplied by three, with funds collected by the
66.7commissioner allocated proportionally in the same manner as provided in section 168.33,
66.8subdivision 7, paragraph (e). In no event is the tax under this paragraph less than $5.
66.9(d) Notwithstanding any law to the contrary, all trailers and semitrailers taxed
66.10pursuant to this section shall be are exempt from any wheelage tax now or hereafter
66.11imposed by any political subdivision or political subdivisions.
66.12EFFECTIVE DATE.This section is effective the day following final enactment,
66.13and applies to taxes payable for a registration period starting on or after January 1, 2016.

66.14    Sec. 8. Minnesota Statutes 2014, section 168.013, subdivision 8, is amended to read:
66.15    Subd. 8. Tax proceeds to highway user fund; fee proceeds to vehicle services
66.16account. (a) Unless otherwise specified in this chapter, the net proceeds of the registration
66.17tax imposed under this chapter, including the penalty surcharge for late payment, imposed
66.18in section 168.31, subdivision 1a, must be collected by the commissioner, paid into the
66.19state treasury, and credited to the highway user tax distribution fund.
66.20(b) All fees collected under this chapter, unless otherwise specified, must be
66.21deposited in the vehicle services operating account in the special revenue fund under
66.22section 299A.705.
66.23EFFECTIVE DATE.This section is effective July 1, 2015, and applies to vehicle
66.24registration taxes due and unpaid on and after that date.

66.25    Sec. 9. Minnesota Statutes 2014, section 168.12, subdivision 1, is amended to read:
66.26    Subdivision 1. Plates; design, visibility, periods of issuance. (a) The commissioner,
66.27upon approval and payment, shall issue to the applicant the plates required by this chapter,
66.28bearing the state name and an assigned vehicle registration number. The number assigned
66.29by the commissioner may be a combination of a letter or sign with figures. The color of the
66.30plates and the color of the abbreviation of the state name and the number assigned must
66.31be in marked contrast. The plates must be lettered, spaced, or distinguished to suitably
66.32indicate the registration of the vehicle according to the rules of the commissioner.
67.1    (b) When a vehicle is registered on the basis of total gross weight, the plates issued
67.2must clearly indicate by letters or other suitable insignia the maximum gross weight
67.3for which the tax has been paid.
67.4(c) Plates issued to a noncommercial vehicle must bear the inscription
67.5"noncommercial" unless the vehicle is displaying a special plate authorized and issued
67.6under this chapter.
67.7(d) A one-ton pickup truck that is used for commercial purposes and is subject to
67.8section 168.185, is eligible to display special plates as authorized and issued under this
67.9chapter.
67.10    (e) The plates must be so treated as to be at least 100 times brighter than the
67.11conventional painted number plates. When properly mounted on an unlighted vehicle, the
67.12plates, when viewed from a vehicle equipped with standard headlights, must be visible for
67.13a distance of not less than 1,500 feet and readable for a distance of not less than 110 feet.
67.14    (f) The commissioner shall issue plates for the following periods:
67.15    (1) New plates issued pursuant to section 168.012, subdivision 1, must be issued to a
67.16vehicle for as long as the vehicle is owned by the exempt agency and the plate shall not be
67.17transferable from one vehicle to another but the plate may be transferred with the vehicle
67.18from one tax-exempt agency to another.
67.19    (2) Plates issued for passenger automobiles must be issued for a seven-year ten-year
67.20period. All plates issued under this paragraph must be replaced if they are seven ten years
67.21old or older at the time of registration renewal or will become so during the registration
67.22period.
67.23    (3) Plates issued under sections 168.053 and 168.27, subdivisions 16 and 17, must
67.24be for a seven-year ten-year period.
67.25    (4) Plates issued under subdivisions 2c and 2d and section 168.123 must be issued
67.26for the life of the veteran under section 169.79.
67.27    (5) Plates for any vehicle not specified in clauses (1) to (3) must be issued for the
67.28life of the vehicle.
67.29    (g) In a year in which plates are not issued, the commissioner shall issue for each
67.30registration a sticker to designate the year of registration. This sticker must show the year or
67.31years for which the sticker is issued, and is valid only for that period. The plates and stickers
67.32issued for a vehicle may not be transferred to another vehicle during the period for which
67.33the sticker is issued, except when issued for a vehicle registered under section 168.187.
67.34    (h) Despite any other provision of this subdivision, plates issued to a vehicle used
67.35for behind-the-wheel instruction in a driver education course in a public school may
67.36be transferred to another vehicle used for the same purpose without payment of any
68.1additional fee. The public school shall notify the commissioner of each transfer of plates
68.2under this paragraph. The commissioner may prescribe a format for notification.

68.3    Sec. 10. Minnesota Statutes 2014, section 168.31, is amended by adding a subdivision
68.4to read:
68.5    Subd. 1a. Penalty surcharge for late payment. Except as otherwise provided in
68.6subdivisions 4 and 4a, a vehicle owner who has failed to pay the tax required under this
68.7chapter on or before the due date shall pay in full the tax due on the vehicle, together with
68.8a penalty surcharge of $25 for each month or portion of a month following the expiration
68.9of the registration period, except that the amount of the late fee may not exceed $100.
68.10EFFECTIVE DATE.This section is effective July 1, 2015, and applies to vehicle
68.11registration taxes due and unpaid on and after that date.

68.12    Sec. 11. [174.53] FEDERAL FUND FLEXIBILITY PROGRAM.
68.13The commissioner shall establish a program to allow greater flexibility and
68.14efficiency in the allocation of federal funds for state-aid transportation projects. The
68.15commissioner shall:
68.16(1) establish and administer selection criteria and a process under which a local unit
68.17of government that would otherwise receive federal funds for a local transportation project
68.18would be able to finance the project with state funds instead of federal funds;
68.19(2) redirect the unused federal funds to transportation projects for which federal
68.20funds could be utilized by the state more efficiently and productively;
68.21(3) achieve a reasonable degree of equity among the department districts in
68.22distributing funds under the program; and
68.23(4) ensure that the state's receipt of federal funds for transportation projects is not
68.24jeopardized by the program.
68.25EFFECTIVE DATE.This section is effective the day following final enactment.

68.26    Sec. 12. Minnesota Statutes 2014, section 299A.465, subdivision 2, is amended to read:
68.27    Subd. 2. Officer or firefighter killed in line of duty. (a) This subdivision applies
68.28when a peace officer or, firefighter, or volunteer firefighter is killed while on duty and
68.29discharging the officer's or, firefighter's, or volunteer firefighter's duties as a peace officer
68.30or, firefighter, or volunteer firefighter.
68.31(b) The officer's or firefighter's employer shall continue to cover the deceased
68.32officer's or firefighter's dependents, including the officer's or firefighter's spouse:
69.1(1) if the officer or, firefighter, or volunteer firefighter was receiving dependent
69.2coverage at the time of the officer's or, firefighter's, or volunteer firefighter's death under
69.3the employer's group health plan; or
69.4(2) if the officer's or, firefighter's, or volunteer firefighter's spouse was not covered
69.5as a dependent at the time of the officer's or, firefighter's, or volunteer firefighter's death,
69.6but at that time was eligible, or afterward becomes eligible, to be a dependent on the
69.7employer's group health plan.
69.8(c) The employer is responsible for the employer's contribution for the coverage of
69.9the officer's or, firefighter's, or volunteer firefighter's dependents. Subject to subdivision
69.105, paragraph (b), clause (2), coverage must continue for a dependent of the officer or,
69.11firefighter for the period of time that the person is a dependent up to the age of 65, or
69.12volunteer firefighter as follows: (1) for a surviving spouse, until the surviving spouse
69.13reaches the age of 65; and (2) for each other dependent, until the dependent reaches the
69.14age of 26, except as otherwise provided in section 62L.02, subdivision 11.
69.15EFFECTIVE DATE.This section is effective January 1, 2016, and applies to
69.16officer, firefighter, and volunteer firefighter deaths that occur on and after the effective date.

69.17    Sec. 13. Minnesota Statutes 2014, section 299A.465, is amended by adding a
69.18subdivision to read:
69.19    Subd. 2a. Volunteer firefighter killed in line of duty. (a) This subdivision
69.20applies when a volunteer firefighter is killed while on duty and discharging the volunteer
69.21firefighter's duties as a volunteer firefighter and the municipality or municipalities that
69.22operate the fire department did not offer a group health insurance policy to which a
69.23volunteer firefighter was eligible to subscribe.
69.24(b) The municipality or municipalities that operate the fire department that the
69.25volunteer firefighter served with shall, until coverage terminates as provided under
69.26subdivision 2, paragraph (c), either: (1) provide health insurance coverage for the
69.27volunteer firefighter's dependents that is equivalent to the average benefit provided by the
69.28municipality or municipalities to dependents of its employees who are covered by the
69.29plan, or (2) reimburse the dependents, if the municipality or municipalities do not offer a
69.30group health insurance plan for any employees, for a minimum of 50 percent of the cost of
69.31health insurance premiums for coverage selected by the dependents.
69.32EFFECTIVE DATE.This section is effective January 1, 2016, and applies to
69.33volunteer firefighter deaths that occur on and after the effective date.

70.1    Sec. 14. Minnesota Statutes 2014, section 299A.465, subdivision 5, is amended to read:
70.2    Subd. 5. Definition. For purposes of this section:
70.3(a) "Peace officer" or "officer" has the meaning given in section 626.84, subdivision
70.41
, paragraph (c).
70.5(b) "Dependent" means a person who: (1) meets the definition of dependent in
70.6section 62L.02, subdivision 11, at the time of the officer's or firefighter's injury or death. a
70.7person ; and (2) is not a dependent for purposes of this section during the period of time the
70.8person is covered under another group health plan. For purposes of this section, a volunteer
70.9firefighter is deemed to be an eligible employee under section 62L.02, subdivision 13.
70.10(c) "Firefighter" has the meaning given in Minnesota Statutes 2000, section 424.03,
70.11but does not include volunteer firefighters.
70.12(d) "Volunteer firefighter" has the meaning given in section 299N.03, subdivision 7,
70.13and includes paid per call.
70.14(e) "Fire department" has the meaning given in section 299N.03, subdivision 4.
70.15EFFECTIVE DATE.This section is effective January 1, 2016, and applies to
70.16officer and firefighter deaths that occur on and after the effective date.

70.17    Sec. 15. Minnesota Statutes 2014, section 299A.465, is amended by adding a
70.18subdivision to read:
70.19    Subd. 5a. Minimum benefit. Nothing in this section prohibits an employer from
70.20providing benefits to survivors of deceased volunteer firefighters that are greater than the
70.21benefits required under this section.

70.22    Sec. 16. Minnesota Statutes 2014, section 299D.09, is amended to read:
70.23299D.09 ESCORT SERVICE; APPROPRIATION; RECEIPTS.
70.24    (a) Fees charged for escort services provided by the State Patrol are annually
70.25appropriated to the commissioner of public safety to administer and provide these services.
70.26    (b) The fee charged for services provided by the State Patrol with a vehicle is $79.28
70.27an hour. The fee charged for services provided without a vehicle is $59.28 an hour
70.28shall be set to recover actual costs as determined by the commissioner of public safety
70.29by July 1 each year.
70.30    (c) The fees charged for State Patrol flight services are $140 an hour for a fixed wing
70.31aircraft, $490 an hour for a helicopter, and $600 an hour for the Queen Air in fiscal year
70.322012; and $139.64 an hour for a fixed wing aircraft, $560.83 an hour for a helicopter, and
70.33$454.84 an hour for the Queen Air in fiscal year 2013 and thereafter.
71.1EFFECTIVE DATE.This section is effective the day following final enactment.

71.2    Sec. 17. [299F.037] REPORTING FIREFIGHTER DEATHS.
71.3Whenever an active firefighter dies, whether or not the death is presumed to be in the
71.4line of duty, the fire chief of the deceased firefighter must report, without undue delay,
71.5the death to the state fire marshal. The notification shall identify the cause of death and
71.6contain information concerning the circumstances of the death.

71.7    Sec. 18. Minnesota Statutes 2014, section 360.024, is amended to read:
71.8360.024 AIR TRANSPORTATION SERVICE CHARGE.
71.9The commissioner shall charge users of air transportation services provided by the
71.10commissioner for direct operating costs, excluding pilot salary and aircraft acquisition
71.11costs. All receipts for these services shall be deposited in the air transportation services
71.12account in the state airports fund and are appropriated to the commissioner to pay these
71.13direct air service operating costs.

71.14    Sec. 19. Minnesota Statutes 2014, section 473.167, is amended to read:
71.15473.167 HIGHWAY AND TRANSIT PROJECTS.
71.16    Subd. 2. Loans for acquisition. (a) The council may make loans to counties, towns,
71.17and statutory and home rule charter cities within the metropolitan area for the purchase of
71.18property within the right-of-way of a state trunk highway shown on an official map adopted
71.19pursuant to section 394.361 or 462.359 or, for the purchase of property within the proposed
71.20right-of-way of a principal or intermediate arterial highway designated by the council as a
71.21part of the metropolitan highway system plan and approved by the council pursuant to
71.22section 473.166, or for the purchase of property needed for proposed transit-related capital
71.23improvements, including transitways designated in the council's most recent transportation
71.24policy plan. The loans shall be made by the council, from the fund established pursuant to
71.25this subdivision, for purchases approved by the council. The loans shall bear no interest.
71.26(b) The council shall make loans only:
71.27(1) to accelerate the acquisition of primarily undeveloped property when there
71.28is a reasonable probability that the property will increase in value before highway or
71.29transit-related construction, and to update an expired environmental impact statement on
71.30a project for which the right-of-way is being purchased;
71.31(2) to avert the imminent conversion or the granting of approvals which would allow
71.32the conversion of property to uses which would jeopardize its availability for highway or
71.33transit-related construction;
72.1(3) to advance planning and environmental activities on highest priority major
72.2metropolitan river crossing projects, under the transportation development guide
72.3chapter/policy plan; or
72.4(4) to take advantage of open market opportunities when developed properties
72.5become available for sale, provided all parties involved are agreeable to the sale and
72.6funds are available.
72.7(c) The council shall not make loans for the purchase of property at a price which
72.8exceeds the fair market value of the property or which includes the costs of relocating or
72.9moving persons or property. The eminent domain process may be used to settle differences
72.10of opinion as to fair market value, provided all parties agree to the process.
72.11(d) A private property owner may elect to receive the purchase price either in a
72.12lump sum or in not more than four annual installments without interest on the deferred
72.13installments. If the purchase agreement provides for installment payments, the council
72.14shall make the loan in installments corresponding to those in the purchase agreement. The
72.15recipient of an acquisition loan shall convey the property for the construction of the highway
72.16at the same price which the recipient paid for the property. The price may include the costs
72.17of preparing environmental documents that were required for the acquisition and that were
72.18paid for with money that the recipient received from the loan fund. Upon notification by
72.19the council that the plan to construct the highway or transit project has been abandoned or
72.20the anticipated location of the highway or transit project changed, the recipient shall sell
72.21the property at market value in accordance with the procedures required for the disposition
72.22of the property. All rents and other money received because of the recipient's ownership
72.23of the property and all proceeds from the conveyance or sale of the property shall be paid
72.24to the council. If a recipient is not permitted to include in the conveyance price the cost
72.25of preparing environmental documents that were required for the acquisition, then the
72.26recipient is not required to repay the council an amount equal to 40 percent of the money
72.27received from the loan fund and spent in preparing the environmental documents.
72.28(e) The proceeds of the tax authorized by subdivision 3, all money paid to the
72.29council by recipients of loans, and all interest on the proceeds and payments shall be
72.30maintained as a separate fund. For administration of the loan program, the council may
72.31expend from the fund each year an amount no greater than three percent of the amount of
72.32the proceeds for that year.
72.33    Subd. 2a. Loans for acquisition and relocation. (a) The council may make loans
72.34to acquiring authorities within the metropolitan area to purchase homestead property
72.35located in a proposed state trunk highway right-of-way or project or transit-related project,
72.36and to provide relocation assistance. Acquiring authorities are authorized to accept the
73.1loans and to acquire the property. Except as provided in this subdivision, the loans shall
73.2be made as provided in subdivision 2. Loans shall be in the amount of the fair market
73.3value of the homestead property plus relocation costs and less salvage value. Before
73.4construction of the highway or transit-related project begins, the acquiring authority shall
73.5convey the property to the commissioner of transportation or council at the same price it
73.6paid, plus relocation costs and less its salvage value. Acquisition and assistance under this
73.7subdivision must conform to sections 117.50 to 117.56.
73.8(b) The council may make loans only when:
73.9(1) the owner of affected homestead property requests acquisition and relocation
73.10assistance from an acquiring authority;
73.11(2) federal or state financial participation is not available;
73.12(3) the owner is unable to sell the homestead property at its appraised market
73.13value because the property is located in a proposed state trunk highway right-of-way or
73.14project as indicated on an official map or plat adopted under section 160.085, 394.361,
73.15or 462.359, or transit-related project; and
73.16(4) the council agrees to and approves the fair market value of the homestead
73.17property, which approval shall not be unreasonably withheld.
73.18(c) For purposes of this subdivision, the following terms have the meanings given
73.19them.
73.20(1) "Acquiring authority" means counties, towns, and statutory and home rule
73.21charter cities in the metropolitan area.
73.22(2) "Homestead property" means: (i) a single-family dwelling occupied by the
73.23owner, and the surrounding land, not exceeding a total of ten acres; or (ii) a manufactured
73.24home, as defined in section 327B.01, subdivision 13.
73.25(3) "Salvage value" means the probable sale price of the dwelling and other property
73.26that is severable from the land if offered for sale on the condition that it be removed from
73.27the land at the buyer's expense, allowing a reasonable time to find a buyer with knowledge
73.28of the possible uses of the property, including separate use of serviceable components and
73.29scrap when there is no other reasonable prospect of sale.
73.30    Subd. 3. Tax. The council may levy a tax on all taxable property in the metropolitan
73.31area, as defined in section 473.121, to provide funds for loans made pursuant to
73.32subdivisions 2 and 2a. This tax for the right-of-way acquisition loan fund shall be certified
73.33by the council, levied, and collected in the manner provided by section 473.13. The tax
73.34shall be in addition to that authorized by section 473.249 and any other law and shall not
73.35affect the amount or rate of taxes which may be levied by the council or any metropolitan
73.36agency or local governmental unit. The amount of the levy shall be as determined and
74.1certified by the council, provided that the tax levied by the Metropolitan Council for the
74.2right-of-way acquisition loan fund shall not exceed $2,828,379 for taxes payable in 2004
74.3and $2,828,379 for taxes payable in 2005. The amount of the levy for taxes payable in
74.42006 and subsequent years shall not exceed the product of (1) the Metropolitan Council's
74.5property tax levy limitation under this subdivision for the previous year, multiplied by
74.6(2) one plus a percentage equal to the growth in the implicit price deflator as defined
74.7in section 275.70, subdivision 2.
74.8    Subd. 4. State review. The commissioner of revenue shall certify the council's levy
74.9limitation under this section to the council by August 1 of the levy year. The council must
74.10certify its proposed property tax levy to the commissioner of revenue by September 1 of
74.11the levy year. The commissioner of revenue shall annually determine whether the property
74.12tax for the right-of-way acquisition loan fund certified by the Metropolitan Council for
74.13levy following the adoption of its proposed budget is within the levy limitation imposed
74.14by this section. The determination must be completed prior to September 10 of each year.
74.15If current information regarding market valuation in any county is not transmitted to the
74.16commissioner in a timely manner, the commissioner may estimate the current market
74.17valuation within that county for purposes of making the calculation.
74.18EFFECTIVE DATE.This section is effective the day following final enactment.

74.19    Sec. 20. Laws 2014, chapter 312, article 11, section 33, is amended to read:
74.20    Sec. 33. TRANSPORTATION EFFICIENCIES.
74.21(a) The commissioner of transportation shall include in the report under Minnesota
74.22Statutes, section 174.56, due by December 15, 2015, information on efficiencies
74.23implemented in fiscal year 2015 in planning and project management and delivery,
74.24along with an explanation of the efficiencies employed to achieve the savings and the
74.25methodology used in the calculations. The level of savings achieved must equal, in
74.26comparison with the total state road construction budget for that year, a minimum of five
74.27percent in fiscal year 2015. The report must identify the projects that have been advanced
74.28or completed due to the implementation of efficiency measures.
74.29(b) The commissioner shall identify in the report those recommendations from the
74.30Transportation Strategic Management and Operations Advisory Task Force Report dated
74.31January 23, 2009, submitted to the legislature by the Departments of Administration
74.32and Transportation, as required by Laws 2008, chapter 152, article 6, section 9,
74.33that the commissioner has implemented, with a description of current status of the
74.34recommendation and results of implementation.
75.1(c) The commissioner shall present in the report plans to incorporate greater
75.2efficiencies in department operation and decision-making, including, but not limited to,
75.3the following: financing innovations, mode choice in project selection and design, land
75.4use planning, return on investment calculation, project delivery, including selection of
75.5materials and decreasing project delivery time, and efficiencies in multiagency permitting.

75.6ARTICLE 8
75.7TRANSPORTATION POLICY

75.8    Section 1. Minnesota Statutes 2014, section 168.002, subdivision 24, is amended to read:
75.9    Subd. 24. Passenger automobile. (a) "Passenger automobile" means any motor
75.10vehicle designed and used for carrying not more than 15 individuals, including the driver.
75.11    (b) "Passenger automobile" does not include motorcycles, motor scooters, buses,
75.12school buses, or commuter vans as defined in section 168.126.
75.13    (c) "Passenger automobile" includes, but is not limited to:
75.14    (1) a vehicle that is a pickup truck or a van as defined in subdivisions 26 and 40;
75.15    (2) neighborhood electric vehicles, as defined in section 169.011, subdivision 47; and
75.16    (3) medium-speed electric vehicles, as defined in section 169.011, subdivision 39; and
75.17    (4) unconventional vehicles, as defined in section 169.011, subdivision 89a.

75.18    Sec. 2. Minnesota Statutes 2014, section 168.053, subdivision 1, is amended to read:
75.19    Subdivision 1. Application; fee; penalty. Any person, firm, or corporation with
75.20a business located in Minnesota engaged in the business of transporting motor vehicles
75.21owned by another, by delivering, by drive-away or towing methods, either singly or by
75.22means of the full mount method, the saddle mount method, the tow bar method, or any other
75.23combination thereof, and under their own power, vehicles over the highways of the state
75.24from the manufacturer or any other point of origin, to any point of destination, within or
75.25without the state, shall make application to the registrar for a drive-away in-transit license.
75.26This application for annual license shall be accompanied by a registration fee of $250 and
75.27contain information the registrar may require. Upon the filing of the application and the
75.28payment of the fee, the registrar shall issue to each drive-away operator a drive-away
75.29in-transit license plate, which must be carried and displayed on the power unit consistent
75.30with section 169.79 and the plate shall remain on the vehicle while being operated within
75.31Minnesota transported. The license plate issued under this subdivision is not valid for the
75.32purpose of permanent vehicle registration and is not valid outside Minnesota. Additional
75.33drive-away in-transit license plates desired by any drive-away operator may be secured
75.34from the registrar of motor vehicles upon the payment of a fee of $5 for each set of
76.1additional license plates. Any person, firm, or corporation engaging in the business as a
76.2drive-away operator, of transporting and delivering by means of full mount method, the
76.3saddle mount method, the tow bar method, or any combination thereof, and under their
76.4own power, motor vehicles, who fails or refuses to file or cause to be filed an application,
76.5as is required by law, and to pay the fees therefor as the law requires, shall be found guilty
76.6of violating the provisions of sections 168.053 to 168.057; and, upon conviction, fined
76.7not less than $50, and not more than $100, and all costs of court. Each day so operating
76.8without securing the license and plates as required shall constitute a separate offense.

76.9    Sec. 3. [168.1294] "BREAST CANCER AWARENESS" PLATES.
76.10    Subdivision 1. Issuance of plates. The commissioner shall issue special "Breast
76.11Cancer Awareness" plates or a single motorcycle plate to an applicant who:
76.12(1) is a registered owner of a passenger automobile, one-ton pickup truck,
76.13motorcycle, or recreational motor vehicle;
76.14(2) pays a fee of $12.50 for each set of plates;
76.15(3) pays the registration tax as required under section 168.013, along with any
76.16other fees required by this chapter;
76.17(4) contributes a minimum of $20 to the Masonic Cancer Center at the University of
76.18Minnesota for breast cancer research; and
76.19(5) complies with this chapter and rules governing registration of motor vehicles
76.20and licensing of drivers.
76.21    Subd. 2. Design. The commissioner shall design the special plate to contain the
76.22inscription "Minnesota Cares" and the pink breast cancer ribbon.
76.23    Subd. 3. Plates transfer. On application to the commissioner and payment of a
76.24transfer fee of $5, special plates issued under this section may be transferred to another
76.25motor vehicle if the subsequent vehicle is:
76.26(1) qualified under subdivision 1, clause (1), to bear the special plates; and
76.27(2) registered to the same individual to whom the special plates were originally issued.
76.28    Subd. 4. Exemption. Special plates issued under this section are not subject to
76.29section 168.1293, subdivision 2.
76.30    Subd. 5. Fees. Fees collected under subdivision 1, clause (2), and subdivision 3 are
76.31credited to the vehicle services operating account in the special revenue fund.
76.32    Subd. 6. No refund. Contributions under this section must not be refunded.
76.33EFFECTIVE DATE.This section is effective January 1, 2016, for plates issued
76.34on or after that date.

77.1    Sec. 4. Minnesota Statutes 2014, section 168A.05, is amended by adding a subdivision
77.2to read:
77.3    Subd. 10. Unconventional vehicles; certificate required. Unconventional
77.4vehicles, as defined in section 169.011, subdivision 89a, must be titled as specified in
77.5section 168A.02. The commissioner shall issue a title for an unconventional vehicle
77.6(1) having a vehicle identification number or other alphanumeric sequence assigned
77.7by the manufacturer for the purpose of identifying that vehicle, and (2) for which the
77.8requirements under this chapter are met.

77.9    Sec. 5. Minnesota Statutes 2014, section 168D.06, is amended to read:
77.10168D.06 FUEL LICENSE FEES.
77.11    License fees paid to the commissioner under the International Fuel Tax Agreement
77.12must be deposited in the vehicle services operating account in the special revenue fund
77.13under section 299A.705. The commissioner shall charge an annual fuel license fee of
77.14$15, and an annual application filing fee of $13 for quarterly reporting of fuel tax, and a
77.15reinstatement fee of $100 to reinstate a revoked International Fuel Tax Agreement license.
77.16EFFECTIVE DATE.This section is effective the day following final enactment.

77.17    Sec. 6. Minnesota Statutes 2014, section 169.011, is amended by adding a subdivision
77.18to read:
77.19    Subd. 89a. Unconventional vehicle. (a) "Unconventional vehicle" means a motor
77.20vehicle that:
77.21(1) has at least three wheels;
77.22(2) has an unloaded weight of 300 to 8,000 pounds;
77.23(3) contains a permanent upright seat or saddle for the driver that is mounted at least
77.2424 inches from the ground; and
77.25(4) has a speed attainable in one mile of at least 60 miles per hour on a level paved
77.26surface.
77.27(b) An unconventional vehicle does not include any motor vehicle that is otherwise
77.28defined under section 168.002 and able to be registered under chapter 168. The exclusion
77.29under this paragraph applies but is not limited to an all-terrain vehicle, motorcycle,
77.30motorized bicycle, neighborhood electric vehicle, and medium-speed electric vehicle.

77.31    Sec. 7. [169.2245] UNCONVENTIONAL VEHICLE.
78.1A person may operate an unconventional vehicle on public streets and highways,
78.2except on a freeway, as defined in section 160.02, subdivision 19. A road authority,
78.3including the commissioner of transportation by order, may prohibit operation of
78.4unconventional vehicles on any street or highway under the road authority's jurisdiction.

78.5    Sec. 8. Minnesota Statutes 2014, section 169.798, subdivision 4, is amended to read:
78.6    Subd. 4. Attestation of Insurance information required. Every owner, when
78.7applying for motor vehicle or motorcycle registration, reregistration, or transfer of
78.8ownership, must attest provide information showing that the motor vehicle or motorcycle
78.9is covered by an insurance policy. Information required under this subdivision consists
78.10of the insurance company's name, the policy number, and the policy expiration date for
78.11the subject motor vehicle or motorcycle.
78.12EFFECTIVE DATE.This section is effective January 1, 2016, and applies to
78.13registrations, reregistrations, and transfers of ownership occurring on or after that date.

78.14    Sec. 9. Minnesota Statutes 2014, section 171.01, is amended by adding a subdivision
78.15to read:
78.16    Subd. 31c. Driving privilege license. "Driving privilege license" means a class
78.17D license, instruction permit, or provisional license to operate a motor vehicle issued or
78.18issuable under the laws of this state by the commissioner of public safety to a person who
78.19is unable to demonstrate legal presence in this country through current lawful admission
78.20status, permanent resident status, indefinite authorized presence status, or United
78.21States citizenship. A driving privilege license may be used only for driving and not as
78.22identification or proof of legal presence or citizenship. A driving privilege license must not
78.23be used or accepted for voter registration purposes under section 201.061. All provisions
78.24in this chapter relating to drivers' licenses, instruction permits, and provisional licenses,
78.25including cancellation, suspension, revocation, reinstatement, examination, restriction,
78.26expiration, renewal, and unlawful acts and violations, apply to a driving privilege license.
78.27EFFECTIVE DATE.This section is effective January 1, 2016, for a new driver's
78.28license, permit, or identification card, and a renewal issued on or after that date.

78.29    Sec. 10. Minnesota Statutes 2014, section 171.01, subdivision 37, is amended to read:
78.30    Subd. 37. License. "License" means any operator's license or any other license or
78.31permit to operate a motor vehicle issued or issuable under the laws of this state by the
78.32commissioner of public safety including:
79.1(1) any temporary license, driving privilege license, instruction permit, or
79.2provisional license;
79.3(2) the privilege of any person to drive a motor vehicle whether or not the person
79.4holds a valid license; and
79.5(3) any nonresident's operating privilege.
79.6EFFECTIVE DATE.This section is effective January 1, 2016, for a new driver's
79.7license, permit, or identification card, and a renewal issued on or after that date.

79.8    Sec. 11. Minnesota Statutes 2014, section 171.01, subdivision 49a, is amended to read:
79.9    Subd. 49a. Valid license; valid driver's license. "Valid license," "valid driver's
79.10license," "valid Minnesota driver's license," "valid standard driver's license," or other
79.11similar term, means any operator's license, provisional license, driving privilege license,
79.12temporary license, limited license, permit, or other license to operate a motor vehicle
79.13issued or issuable under the laws of this state by the commissioner, or by another state or
79.14jurisdiction if specified, that is:
79.15    (1) not expired, suspended, revoked, or canceled; and
79.16    (2) not disqualified for the class of vehicle being operated.
79.17EFFECTIVE DATE.This section is effective January 1, 2016, for a new driver's
79.18license, permit, or identification card, and a renewal issued on or after that date.

79.19    Sec. 12. Minnesota Statutes 2014, section 171.06, subdivision 1, is amended to read:
79.20    Subdivision 1. Forms of application. Every application for a Minnesota
79.21identification card, for an enhanced identification card, for an instruction permit, for
79.22a provisional license, for a driver's license, driving privilege license, or for an enhanced
79.23driver's license must be made in a format approved by the department, and every
79.24application must be accompanied by the proper fee. All first-time applications and
79.25change-of-status applications must be signed in the presence of the person authorized to
79.26accept the application, or the signature on the application may be verified by a notary
79.27public. All applications requiring evidence of legal presence in the United States or United
79.28States citizenship must be signed in the presence of the person authorized to accept the
79.29application, or the signature on the application may be verified by a notary public.
79.30EFFECTIVE DATE.This section is effective January 1, 2016, for a new driver's
79.31license, permit, or identification card, and a renewal issued on or after that date.

79.32    Sec. 13. Minnesota Statutes 2014, section 171.06, subdivision 2, is amended to read:
80.1    Subd. 2. Fees. (a) The fees for a license and Minnesota identification card are
80.2as follows:
80.3
Classified Driver's License
D-$17.25
C-$21.25
B-$28.25
A-$36.25
80.4
Classified Under-21 D.L.
D-$17.25
C-$21.25
B-$28.25
A-$16.25
80.5
Driving Privilege License
D-$17.25
-
-
-
80.6
Enhanced Driver's License
D-$32.25
C-$36.25
B-$43.25
A-$51.25
80.7
Instruction Permit
$5.25
80.8
80.9
Enhanced Instruction
Permit
$20.25
80.10
80.11
Commercial Learner's
Permit
$2.50
80.12
Provisional License
$8.25
80.13
80.14
Enhanced Provisional
License
$23.25
80.15
80.16
80.17
Duplicate License or
duplicate identification
card
$6.75
80.18
80.19
80.20
80.21
Enhanced Duplicate
License or enhanced
duplicate identification
card
$21.75
80.22
80.23
80.24
80.25
80.26
80.27
80.28
Minnesota identification
card or Under-21
Minnesota identification
card, other than duplicate,
except as otherwise
provided in section 171.07,
subdivisions 3
and 3a
$11.25
80.29
80.30
Enhanced Minnesota
identification card
$26.25
80.31In addition to each fee required in this paragraph, the commissioner shall collect a
80.32surcharge of: (1) $1.75 until June 30, 2012; and (2) $1.00 from July 1, 2012, to June 30,
80.332016. Surcharges collected under this paragraph must be credited to the driver and vehicle
80.34services technology account in the special revenue fund under section 299A.705.
80.35    (b) Notwithstanding paragraph (a), an individual who holds a provisional license and
80.36has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33,
80.37169A.35 , or sections 169A.50 to 169A.53, (2) convictions for crash-related moving
80.38violations, and (3) convictions for moving violations that are not crash related, shall have a
80.39$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation"
80.40has the meaning given it in section 171.04, subdivision 1.
80.41    (c) In addition to the driver's license fee required under paragraph (a), the
80.42commissioner shall collect an additional $4 processing fee from each new applicant
80.43or individual renewing a license with a school bus endorsement to cover the costs for
81.1processing an applicant's initial and biennial physical examination certificate. The
81.2department shall not charge these applicants any other fee to receive or renew the
81.3endorsement.
81.4(d) In addition to the fee required under paragraph (a), a driver's license agent may
81.5charge and retain a filing fee as provided under section 171.061, subdivision 4.
81.6(e) In addition to the fee required under paragraph (a), the commissioner shall
81.7charge a filing fee at the same amount as a driver's license agent under section 171.061,
81.8subdivision 4. Revenue collected under this paragraph must be deposited in the driver
81.9services operating account.
81.10(f) An application for a Minnesota identification card, instruction permit, provisional
81.11license, driving privilege license, or driver's license, including an application for renewal,
81.12must contain a provision that allows the applicant to add to the fee under paragraph (a),
81.13a $2 donation for the purposes of public information and education on anatomical gifts
81.14under section 171.075.
81.15EFFECTIVE DATE.This section is effective January 1, 2016, for a new driver's
81.16license, permit, or identification card, and a renewal issued on or after that date.

81.17    Sec. 14. Minnesota Statutes 2014, section 171.06, subdivision 3, is amended to read:
81.18    Subd. 3. Contents of Application; other information requirements. (a) An
81.19application must:
81.20    (1) state the full name, date of birth, sex, and either (i) the residence address of the
81.21applicant, or (ii) designated address under section 5B.05;
81.22    (2) as may be required by the commissioner, contain a description of the applicant
81.23and any other facts pertaining to the applicant, the applicant's driving privileges, and the
81.24applicant's ability to operate a motor vehicle with safety;
81.25    (3) state:
81.26    (i) the applicant's Social Security number; or
81.27    (ii) if the applicant does not have a Social Security number and is applying for a
81.28Minnesota identification card, instruction permit, or class D provisional or driver's license,
81.29that the applicant certifies that the applicant does not have a Social Security number;
81.30    (4) in the case of an application for an enhanced driver's license or enhanced
81.31identification card, present:
81.32(i) proof satisfactory to the commissioner of the applicant's full legal name, United
81.33States citizenship, identity, date of birth, Social Security number, and residence address; and
81.34(ii) a photographic identity document;
82.1(5) contain a space where the applicant may indicate a desire to make an anatomical
82.2gift according to paragraph (b);
82.3    (6) contain a notification to the applicant of the availability of a living will/health
82.4care directive designation on the license under section 171.07, subdivision 7; and
82.5(7) contain a space where the applicant may request a veteran designation on the
82.6license under section 171.07, subdivision 15, and the driving record under section 171.12,
82.7subdivision 5a; and
82.8(8) contain a space where the applicant must attest to a residence address in
82.9Minnesota.
82.10    (b) If the applicant does not indicate a desire to make an anatomical gift when
82.11the application is made, the applicant must be offered a donor document in accordance
82.12with section 171.07, subdivision 5. The application must contain statements sufficient to
82.13comply with the requirements of the Darlene Luther Revised Uniform Anatomical Gift
82.14Act, chapter 525A, so that execution of the application or donor document will make
82.15the anatomical gift as provided in section 171.07, subdivision 5, for those indicating a
82.16desire to make an anatomical gift. The application must be accompanied by information
82.17describing Minnesota laws regarding anatomical gifts and the need for and benefits of
82.18anatomical gifts, and the legal implications of making an anatomical gift, including the
82.19law governing revocation of anatomical gifts. The commissioner shall distribute a notice
82.20that must accompany all applications for and renewals of a driver's license or Minnesota
82.21identification card. The notice must be prepared in conjunction with a Minnesota organ
82.22procurement organization that is certified by the federal Department of Health and Human
82.23Services and must include:
82.24    (1) a statement that provides a fair and reasonable description of the organ donation
82.25process, the care of the donor body after death, and the importance of informing family
82.26members of the donation decision; and
82.27    (2) a telephone number in a certified Minnesota organ procurement organization that
82.28may be called with respect to questions regarding anatomical gifts.
82.29    (c) The application must be accompanied also by information containing relevant
82.30facts relating to:
82.31    (1) the effect of alcohol on driving ability;
82.32    (2) the effect of mixing alcohol with drugs;
82.33    (3) the laws of Minnesota relating to operation of a motor vehicle while under the
82.34influence of alcohol or a controlled substance; and
82.35    (4) the levels of alcohol-related fatalities and accidents in Minnesota and of arrests
82.36for alcohol-related violations.
83.1(d) A government identification card is:
83.2(1) an acceptable form of proof of identity in application for a Minnesota
83.3identification card, instruction permit, or driver's license; and
83.4(2) a primary document for purposes of Minnesota Rules, part 7410.0400.
83.5(e) For purposes of this section, "government identification card" means a valid,
83.6unexpired passport issued by a country other than the United States with a certified birth
83.7certificate from a country other than the United States, the District of Columbia, Guam,
83.8Puerto Rico, or the United States Virgin Islands. A passport and birth certificate under this
83.9paragraph must have security features that make the document as impervious to alteration
83.10as is reasonably practicable in its design and quality of material and technology, using
83.11materials that are not readily available to the general public. Any document not in English
83.12must be accompanied by a qualified English translation.
83.13EFFECTIVE DATE.This section is effective January 1, 2016, for a new driver's
83.14license, permit, or identification card, and a renewal issued on or after that date.

83.15    Sec. 15. Minnesota Statutes 2014, section 171.07, subdivision 1, is amended to read:
83.16    Subdivision 1. License; contents. (a) Upon the payment of the required fee, the
83.17department shall issue to every qualifying applicant a license designating the type or
83.18class of vehicles the applicant is authorized to drive as applied for. This license must
83.19bear a distinguishing number assigned to the licensee; the licensee's full name and date
83.20of birth; either (1) the licensee's residence address, or (2) the designated address under
83.21section 5B.05; a description of the licensee in a manner as the commissioner deems
83.22necessary; and the usual signature of the licensee. No license is valid unless it bears
83.23the usual signature of the licensee. Every license must bear a colored photograph or an
83.24electronically produced image of the licensee. A driving privilege license must be plainly
83.25marked "FOR DRIVING ONLY."
83.26    (b) If the United States Postal Service will not deliver mail to the applicant's
83.27residence address as listed on the license, then the applicant shall provide verification from
83.28the United States Postal Service that mail will not be delivered to the applicant's residence
83.29address and that mail will be delivered to a specified alternate mailing address. When an
83.30applicant provides an alternate mailing address under this subdivision, the commissioner
83.31shall use the alternate mailing address in lieu of the applicant's residence address for
83.32all notices and mailings to the applicant.
83.33    (c) Every license issued to an applicant under the age of 21 must be of a
83.34distinguishing color and plainly marked "Under-21."
84.1    (d) The department shall use processes in issuing a license that prohibit, as nearly as
84.2possible, the ability to alter or reproduce a license, or prohibit the ability to superimpose a
84.3photograph or electronically produced image on a license, without ready detection.
84.4    (e) A license issued to an applicant age 65 or over must be plainly marked "senior" if
84.5requested by the applicant.
84.6EFFECTIVE DATE.This section is effective January 1, 2016, for a new driver's
84.7license, permit, or identification card, and a renewal issued on or after that date.

84.8    Sec. 16. [174.38] ACTIVE TRANSPORTATION PROGRAMS.
84.9    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
84.10have the meanings given them.
84.11(b) "Administering authority" or "authority" means the commissioner of
84.12transportation, the joint powers board under section 297A.992, or the council, as
84.13appropriate.
84.14(c) "Bond-eligible cost" means:
84.15(1) expenditures under this section for acquisition of land or permanent easements,
84.16predesign, design, preliminary and final engineering, environmental analysis, construction,
84.17and reconstruction of publicly owned infrastructure in this state with a useful life of at
84.18least ten years that provides for nonmotorized transportation;
84.19(2) preparation of land for which a nonmotorized transportation route is established,
84.20including demolition of structures and remediation of any hazardous conditions on the
84.21land; and
84.22(3) the unpaid principal on debt issued by a political subdivision for a nonmotorized
84.23transportation project.
84.24(d) "Council" means the Metropolitan Council, as defined under section 473.121,
84.25subdivision 3.
84.26    Subd. 2. Programs established. (a) Upon availability of funds specifically provided
84.27to an administering authority for purposes of this section, the authority shall establish a
84.28program to support bicycling, pedestrian activities, and other forms of nonmotorized
84.29transportation as provided in this section.
84.30(b) Subject to the requirements of this section, the authority may provide grants
84.31or other financial assistance for a project.
84.32    Subd. 3. Active transportation accounts. (a) An active transportation account
84.33is established in the bond proceeds fund. The account consists of state bond proceeds
84.34appropriated to the commissioner or the council. Money in the account may only be
85.1expended on bond-eligible costs of a project receiving financial assistance under this
85.2section. All uses of funds from the account must be for publicly owned property.
85.3(b) A greater Minnesota active transportation account is established in the special
85.4revenue fund. The account consists of funds as provided by law, and any other money
85.5donated, allotted, transferred, or otherwise provided to the account. Money in the account
85.6may only be expended on a project that is primarily located outside of the metropolitan
85.7transit improvement area, as defined in section 297A.9925, subdivision 1, and receiving
85.8financial assistance as provided under this section.
85.9(c) A metropolitan area active transportation account is established in the special
85.10revenue fund. The account consists of funds as provided by law, and any other money
85.11donated, allotted, transferred, or otherwise provided to the account. Money in the account
85.12may only be expended on a project that is primarily located within the metropolitan transit
85.13improvement area, as defined in section 297A.9925, subdivision 1, and receiving financial
85.14assistance as provided under this section.
85.15    Subd. 4. Program administration. (a) The authority shall establish program
85.16requirements, including:
85.17(1) eligibility for assistance, subject to the requirements under paragraph (b);
85.18(2) a process for solicitation and application that minimizes applicant burdens; and
85.19(3) procedures for award and payment of financial assistance.
85.20(b) Eligible recipients of financial assistance under this section are:
85.21(1) a political subdivision; and
85.22(2) a tax-exempt organization under section 501(c)(3) of the Internal Revenue
85.23Code, as amended.
85.24(c) The authority shall make reasonable efforts to publicize each solicitation
85.25for applications among all eligible recipients, and provide assistance in creating and
85.26submitting applications.
85.27(d) The authority may expend no more than one percent of available funds in a fiscal
85.28year under this section on program administration.
85.29    Subd. 5. State general obligation bond funds. The legislature determines that
85.30many nonmotorized transportation infrastructure projects will constitute betterments and
85.31capital improvements within the meaning of Minnesota Constitution, article XI, section 5,
85.32paragraph (a), and capital expenditures under generally accepted accounting principles,
85.33and will be financed more efficiently and economically under this section than by direct
85.34appropriations for specific projects.
85.35    Subd. 6. Use of funds. (a) For a project funded through state bond proceeds under
85.36this section, financial assistance is limited solely to bond-eligible costs.
86.1(b) Subject to paragraph (a), the authority shall determine permissible uses of
86.2financial assistance under this section, which must include:
86.3(1) construction and maintenance of bicycle, trail, and pedestrian infrastructure,
86.4including but not limited to bicycle facilities and centers, and safe routes to school
86.5infrastructure; and
86.6(2) noninfrastructure programming, including activities as specified in section
86.7174.40, subdivision 7a, paragraph (b).
86.8    Subd. 7. Project evaluation and selection. The authority shall establish a project
86.9evaluation and selection process under this section that is competitive, criteria-based, and
86.10objective. The process must include criteria and prioritization of projects based on:
86.11(1) inclusion of the project in a municipal or regional nonmotorized transportation
86.12system plan;
86.13(2) location of the project in a jurisdiction in which a complete streets policy, as
86.14provided under section 174.75, is in effect;
86.15(3) the extent to which the project supports development of continuous and
86.16convenient safe routes to school;
86.17(4) the extent to which the project supports development of routes to and connections
86.18with educational facilities, centers of employment, governmental services, health care
86.19facilities, food sources, transit facilities, and other community destinations;
86.20(5) general benefits to public health and safety as a result of the project; and
86.21(6) geographic equity in project benefits, as well as benefits in areas or locations
86.22experiencing high rates of pedestrian or bicycle collisions, high rates of health disparities,
86.23and high concentration of poverty.
86.24    Subd. 8. Grant cancellation. If, five years after execution of a grant agreement,
86.25the authority determines that the grantee has not proceeded in a timely manner with
86.26implementation of the project funded, the commissioner must cancel the grant and
86.27the grantee must repay to the commissioner all grant money paid to the grantee for
86.28deposit in the active transportation account from which the grant was originally paid.
86.29Section 16A.642 applies to any appropriations made from the bond proceeds fund to the
86.30commissioner under this section that have not been awarded as financial assistance.
86.31EFFECTIVE DATE.This section is effective the day following final enactment.

86.32    Sec. 17. Minnesota Statutes 2014, section 174.42, is amended by adding a subdivision
86.33to read:
86.34    Subd. 3. Funding requirement for greater Minnesota. In each federal fiscal year,
86.35the commissioner shall spend out of National Highway Performance Program funds a total
87.1amount in federal transportation funds for an active transportation competitive grant
87.2program in greater Minnesota that totals a minimum of $16,000,000 in excess of the
87.3average annual spending on greater Minnesota transportation alternatives projects under
87.4section 174.38 in federal fiscal years between October 2009 and September 2012. National
87.5Highway Performance Program funds may be converted to Surface Transportation
87.6Program funds or Transportation Alternative Program funds to fulfill the requirements
87.7of this section. This requirement must not reduce the amount of federal transportation
87.8funding for metropolitan projects.
87.9EFFECTIVE DATE.This section is effective October 1, 2015.

87.10    Sec. 18. Minnesota Statutes 2014, section 174.50, is amended by adding a subdivision
87.11to read:
87.12    Subd. 6d. Major local bridges account. The major local bridges account is created
87.13in the Minnesota state transportation fund for money appropriated, allocated, or transferred
87.14into the account to fund major local bridge projects. For purposes of this subdivision, a
87.15major local bridge project is a project that carries a total cost in excess of $30,000,000.

87.16    Sec. 19. [219.016] RAILROAD COMPANY ASSESSMENT; ACCOUNT;
87.17APPROPRIATION.
87.18(a) As provided in this section, the commissioner shall annually assess railroad
87.19companies that are (1) defined as common carriers under section 218.011; (2) classified by
87.20federal law or regulation as Class I Railroads or Class I Rail Carriers; and (3) operating in
87.21this state. The total assessment amount may not exceed $32,500,000 annually.
87.22(b) The assessment must be by a division of the annual appropriation to the grade
87.23crossing safety improvement account in equal proportion between carriers based on route
87.24miles operated in Minnesota, assessed in equal amounts for 365 days of the calendar year.
87.25(c) The assessments must be deposited in the rail grade crossing safety improvement
87.26account, which is created in the special revenue fund. Money in the account is
87.27appropriated to the commissioner for the creation of a rail safety office within the
87.28Department of Transportation, not to exceed $1,400,000 in each year; the development,
87.29administration, and construction of highway-rail grade crossing improvements on rail
87.30corridors transporting crude oil; and other selected routes, including those carrying
87.31hazardous materials. Improvements may include upgrades to existing protection systems,
87.32the closing of crossings and necessary roadwork, and reconstruction of at-grade crossings
87.33to full grade separations. Funds in the account are available until expended.

88.1    Sec. 20. Minnesota Statutes 2014, section 222.50, subdivision 7, is amended to read:
88.2    Subd. 7. Expenditures. (a) The commissioner may expend money from the rail
88.3service improvement account for the following purposes:
88.4    (1) to make transfers as provided under section 222.57 or to pay interest adjustments
88.5on loans guaranteed under the state rail user and rail carrier loan guarantee program;
88.6    (2) to pay a portion of the costs of capital improvement projects designed to improve
88.7rail service of a rail user or a rail carrier;
88.8    (3) to pay a portion of the costs of rehabilitation projects designed to improve rail
88.9service of a rail user or a rail carrier;
88.10    (4) to acquire, maintain, manage, and dispose of railroad right-of-way pursuant to
88.11the state rail bank program;
88.12    (5) to provide for aerial photography survey of proposed and abandoned railroad
88.13tracks for the purpose of recording and reestablishing by analytical triangulation the
88.14existing alignment of the inplace track;
88.15    (6) to pay a portion of the costs of acquiring a rail line by a regional railroad
88.16authority established pursuant to chapter 398A;
88.17    (7) to pay the state matching portion of federal grants for rail-highway grade
88.18crossing improvement projects;
88.19    (8) for expenditures made before July 1, 2017, to pay the state matching portion
88.20of grants under the federal Transportation Investment Generating Economic Recovery
88.21(TIGER) program of the United States Department of Transportation; and
88.22    (9) to fund rail planning studies; and
88.23    (10) to pay a portion of the costs of capital improvement projects designed to
88.24improve capacity or safety at rail yards.
88.25    (b) All money derived by the commissioner from the disposition of railroad
88.26right-of-way or of any other property acquired pursuant to sections 222.46 to 222.62 shall
88.27be deposited in the rail service improvement account.

88.28    Sec. 21. Minnesota Statutes 2014, section 360.305, subdivision 4, is amended to read:
88.29    Subd. 4. Costs allocated; local contribution; hangar construction account. (a)
88.30Except as otherwise provided in this subdivision Annually by June 1, the commissioner
88.31of transportation shall require as a condition of assistance by the state that the establish
88.32local contribution rates which will apply to a political subdivision, municipality, or public
88.33corporation make a substantial contribution to the cost of the construction, improvement,
88.34maintenance, or operation of the airport, in connection with which the assistance of the
88.35state is sought. These costs are referred to as project costs when applying for state or
89.1federal funding assistance to construct, improve, maintain, or operate an airport, or to
89.2acquire land for airport facilities or clear zones. If the commissioner does not establish
89.3local contribution rates by June 1, the previous rates apply.
89.4(b) For any airport, whether key, intermediate, or landing strip, where only state and
89.5local funds are to be used, the contribution shall be not less than one-fifth of the sum of:
89.6(1) the project costs;
89.7(2) acquisition costs of the land and clear zones, which are referred to as acquisition
89.8costs. The commissioner may pay all costs beyond the local contribution. Local
89.9contribution rates shall not be less than five percent of the total cost of the activity or
89.10acquisition, except that the commissioner may require less than five percent for research
89.11projects, radio or navigational aids, activities, or acquisitions for which federal funds are
89.12available to cover more than 90 percent of the total cost, or as otherwise necessary to
89.13respond to an emergency.
89.14(c) For any airport where federal, state, and local funds are to be used, the
89.15contribution shall not be less than five percent of the sum of the project costs and
89.16acquisition costs. The commissioner's establishment of local contribution rates is not
89.17subject to the rulemaking requirements of chapter 14.
89.18(d) The commissioner may pay the total cost of radio and navigational aids.
89.19(e) Notwithstanding paragraph (b) or (c), the commissioner may pay all of the
89.20project costs of a new landing strip, but not an intermediate airport or key airport, or may
89.21pay an amount equal to the federal funds granted and used for a new landing strip plus
89.22all of the remaining project costs; but the total amount paid by the commissioner for the
89.23project costs of a new landing strip, unless specifically authorized by an act appropriating
89.24funds for the new landing strip, shall not exceed $200,000.
89.25(f) Notwithstanding paragraph (b) or (c), the commissioner may pay all the project
89.26costs for research and development projects, including, but not limited to noise abatement;
89.27provided that in no event shall the sums expended under this paragraph exceed five
89.28percent of the amount appropriated for construction grants.
89.29(g) (d) To receive aid under this section for project costs or for acquisition costs, the
89.30municipality must enter into an agreement with the commissioner giving assurance that
89.31the airport will be operated and maintained in a safe, serviceable manner for aeronautical
89.32purposes only for the use and benefit of the public:
89.33(1) for 20 years after the date that the municipality receives any state funds for
89.34project construction or improvement costs are received by the municipality; and
89.35(2) for 99 years after the date that the municipality receives any state funds for land
89.36acquisition costs are received by the municipality. If any land acquired with state funds
90.1ceases to be used for aviation purposes, the municipality shall repay the state airports fund
90.2the same percentage of the appraised value of the property as that percentage of the costs
90.3of acquisition and participation provided by the state to acquire the land.
90.4    The agreement may contain other conditions as the commissioner deems reasonable.
90.5(h) (e) The commissioner shall establish a hangar construction revolving account,
90.6which shall be used for the purpose of financing the construction of hangar buildings to
90.7be constructed by municipalities owning airports. All municipalities owning airports are
90.8authorized to enter into contracts for the construction of hangars, and contracts with
90.9the commissioner for the financing of hangar construction for an amount and period of
90.10time as may be determined by the commissioner and municipality. All receipts from the
90.11financing contracts shall be deposited in the hangar construction revolving account and
90.12are reappropriated for the purpose of financing construction of hangar buildings. The
90.13commissioner may pay from the hangar construction revolving account 80 percent of the
90.14cost of financing construction of hangar buildings. For purposes of this paragraph, the
90.15construction of hangars shall include their design. The commissioner shall transfer up to
90.16$4,400,000 from the state airports fund to the hangar construction revolving account.
90.17(i) (f) The commissioner may pay a portion of the purchase price of any contribute
90.18to costs incurred by any municipality for airport maintenance and operations, safety
90.19equipment, and of the actual airport snow removal costs incurred by any municipality.
90.20The portion to be paid by the state shall not exceed two-thirds of the cost of the purchase
90.21price or snow removal. To receive aid a municipality must enter into an agreement of the
90.22type referred to in paragraph (g).
90.23(j) (g) This subdivision applies only to project costs or acquisition costs of
90.24municipally owned airports incurred after June 1, 1971.

90.25    Sec. 22. COMMUTER RAIL TRANSIT FEASIBILITY STUDY.
90.26    Subdivision 1. Scope of study. The Metropolitan Council shall conduct a study of
90.27the feasibility of the use of commuter rail transit in a corridor aligned on marked Interstate
90.28Highway 394 or between marked Interstate Highway 394 and marked Trunk Highway
90.2955, from downtown Minneapolis to Ridgedale Drive in Minnetonka, with the alternative
90.30of extending to Wayzata. The study must include consideration of the feasibility of
90.31connecting the Southwest Light Rail Transit Corridor with the Interstate Highway 394
90.32Corridor between downtown Minneapolis and a point of divergence west of downtown.
90.33The Metropolitan Council may hire a consultant to assist in the study and report under
90.34subdivision 3.
91.1    Subd. 2. Elements of study. The commuter rail transit feasibility study must
91.2include, without limitation:
91.3(1) an identification of major operational characteristics of commuter rail transit
91.4in the corridor;
91.5(2) a quantification of capital and operating costs;
91.6(3) an evaluation of the interface of a rail transit system with other transportation
91.7systems in the corridor;
91.8(4) an evaluation of the impact of a rail transit system on land use and urban
91.9development;
91.10(5) an estimate of the cost and impact of necessary associated exercise of eminent
91.11domain;
91.12(6) an evaluation of the impact of a rail transit system on energy and the environment;
91.13(7) an estimate of ridership potential;
91.14(8) a cost-benefit analysis that compares the total cost of the project with the benefits
91.15of a commuter rail transit line to its users, other users of the highway, and adjacent
91.16property owners;
91.17(9) an identification of potential sources of federal, state, local, private, and other
91.18funds;
91.19(10) an identification of the conditions necessary for commuter rail transit to be
91.20feasible in the Interstate Highway 394 Corridor; and
91.21(11) an evaluation of the feasibility of connecting the Southwest Light Rail Transit
91.22Corridor with the Interstate Highway 394 Corridor between downtown Minneapolis and
91.23a point of divergence west of downtown.
91.24    Subd. 3. Report. The Metropolitan Council shall prepare a written report of this
91.25study and submit it no later than December 15, 2015, to the legislature, in compliance
91.26with Minnesota Statutes, sections 3.195 and 3.197, and to the chairs and ranking minority
91.27members of the senate and house of representatives committees with jurisdiction over
91.28transportation.
91.29EFFECTIVE DATE.This section is effective the day following final enactment.

91.30    Sec. 23. ENVIRONMENTAL IMPACT STATEMENT; CERTAIN TRACK
91.31CONNECTION PROJECTS.
91.32    Subdivision 1. Definition. For purposes of this section, "track connection project"
91.33means a rail construction project that:
91.34(1) is in a county within which there is located a city of the first class, as provided in
91.35Minnesota Statutes, section 410.01;
92.1(2) is located at or near the site of two intersecting tracks of rail; and
92.2(3) establishes switches, turnouts, or other forms of connecting track between
92.3the two intersecting tracks, in which (i) the tracks are owned by two different railroad
92.4companies, and (ii) the project provides for alternative routing of unit trains, as defined
92.5in Minnesota Statutes, section 115E.01, subdivision 11d, transported as of the effective
92.6date of this section on either of the intersecting tracks through a city of the first class
92.7identified in clause (1).
92.8    Subd. 2. Environmental impact statement. An environmental impact statement
92.9must be conducted under Minnesota Statutes, section 116D.04, and applicable
92.10Environmental Quality Board rules governing track connection projects, to make a
92.11determination concerning the existence of a local safety or security hazard under
92.12applicable federal law. The Department of Transportation shall serve as the responsible
92.13governmental unit for the environmental impact statement. A track connection project
92.14may not begin construction and no final governmental decision may be made to grant a
92.15permit, approve the project, or begin the project until the commissioner of transportation
92.16has determined the environmental impact statement is adequate.
92.17EFFECTIVE DATE.This section is effective the day following final enactment
92.18and expires December 31, 2018.

92.19    Sec. 24. ELECTION JUDGE TRAINING.
92.20The secretary of state shall inform each county auditor that a driving privilege
92.21license as defined in Minnesota Statutes, section 171.01, subdivision 31c, must not be used
92.22or accepted for voter registration purposes under Minnesota Statutes, section 201.061.
92.23Each county auditor must inform all election officials and election judges hired for an
92.24election that a driving privilege license must not be used or accepted for voter registration
92.25purposes under Minnesota Statutes, section 201.061. County auditors and municipal
92.26clerks must include this information in all election judge training courses.

92.27    Sec. 25. PUBLIC-PRIVATE PARTNERSHIP PILOT PROGRAM.
92.28    Subdivision 1. Public-private partnership initiatives. (a) The commissioner
92.29of transportation and Metropolitan Council are authorized to consider and utilize
92.30public-private partnership procurement methods for up to three pilot projects as provided
92.31in this section. Utilization of public-private partnerships is a recognition of the importance
92.32to the state of an efficient and safe transportation system, and the necessity of developing
92.33alternative funding sources to supplement traditional sources of transportation revenues.
92.34A public-private partnership initiative must take advantage of the expertise and experience
93.1of public employees and private sector efficiencies in design and construction, along with
93.2expertise in finance and development, and provide a better long-term value for the state
93.3than could be obtained through traditional procurement methods.
93.4(b) Notwithstanding Minnesota Statutes, section 160.98, or any other law to the
93.5contrary, the commissioner or council may consider for use in the pilot program any
93.6existing public-private partnership mechanism or any proposed mechanism that proves the
93.7best available option for the state. Mechanisms the commissioner or council may consider
93.8include, but are not limited to, toll facilities, BOT facilities, BTO facilities, user fees,
93.9construction payments, joint development agreements, negotiated exactions, air rights
93.10development, street improvement districts, or tax increment financing districts for transit.
93.11For the purposes this section, toll facilities, BOT facilities, and BTO facilities have the
93.12meanings given under Minnesota Statutes, section 160.84.
93.13(c) As part of the pilot program, the commissioner and council are directed to form
93.14an independent advisory and oversight office, the Joint Program Office for Economic
93.15Development and Alternative Finance. The office shall consist of the commissioner of
93.16management and budget, the commissioner of employment and economic development,
93.17the commissioner of administration, the commissioner of transportation, the Metropolitan
93.18Council, and one representative each from the American Council of Engineering
93.19Companies - Minnesota chapter, the Central Minnesota Transportation Alliance, the
93.20Counties Transit Improvement Board, and the Minnesota County Engineers Association.
93.21In addition, the commissioner and Metropolitan Council shall invite the Federal Highway
93.22Administration and the Federal Transit Administration to participate in the office's
93.23activities. The office's duties shall include, but are not limited to, reviewing and approving
93.24projects proposed under this section, reviewing any contractual or financial agreements
93.25to ensure program requirements are met, and ensuring that any proposed or executed
93.26agreement serves the public interest.
93.27    Subd. 2. Pilot program restrictions and project selection. (a) The commissioner
93.28or council may receive or solicit and evaluate proposals to build, operate, and finance
93.29projects that are not inconsistent with the commissioner's most recent statewide
93.30transportation plan or the council's most recent transportation policy plan. If the
93.31department or council receives an unsolicited proposal, the department or council shall
93.32publish a notice in the State Register at least once a week for two weeks stating that the
93.33department or council has received the proposal and will accept, for 120 days after the
93.34initial date of publication, other proposals for the same project purpose. The private
93.35proposer must be selected on a competitive basis.
94.1(b) When entering into a public-private partnership, the commissioner or
94.2Metropolitan Council may not enter into any noncompete agreement that inhibits the
94.3state's ability to address ongoing or future infrastructure needs.
94.4(c) If the commissioner or council enters into a public-private partnership agreement
94.5that includes a temporary transfer of ownership or control of a road, bridge, or other
94.6infrastructure investment to the private entity, the agreement must include a provision
94.7requiring the return of the road, bridge, or other infrastructure investment to the state
94.8after a specified period of time.
94.9(d) The commissioner and council may only consider new projects for a
94.10public-private partnership. The commissioner and council are prohibited from considering
94.11projects involving existing infrastructure for a public-private partnership, unless the
94.12proposed project adds capacity to the existing infrastructure.
94.13    Subd. 3. Evaluation and selection of private entity and project. (a) The
94.14commissioner and council shall contract with one or more consultants to assist in proposal
94.15evaluation. The consultant must possess expertise and experience in public-private
94.16partnership project evaluation methodology, such as value for money, costs of
94.17public-private partnership compared with costs of public project delivery, and cost-benefit
94.18analysis.
94.19(b) When soliciting, evaluating, and selecting a private entity with which to enter
94.20into a public-private partnership and before selecting a project, the commissioner or
94.21council must consider:
94.22(1) the ability of the proposed project to improve safety, reduce congestion, increase
94.23capacity, and promote economic growth;
94.24(2) the proposed cost of and financial plan for the project;
94.25(3) the general reputation, qualifications, industry experience, and financial capacity
94.26of the private entity;
94.27(4) the project's proposed design, operation, and feasibility;
94.28(5) length and extent of transportation and transit service disruption;
94.29(6) comments from local citizens and affected jurisdictions;
94.30(7) benefits to the public;
94.31(8) the safety record of the private entity; and
94.32(9) any other criteria the commissioner or council deems appropriate.
94.33(c) The independent advisory and oversight office established under subdivision 1,
94.34paragraph (c), shall, in collaboration with authorized representatives of Department of
94.35Transportation workers, review proposals evaluated by the commissioner or council to
94.36ensure the requirements of this section are being met. The independent advisory and
95.1oversight office shall first determine whether the project, as proposed, serves the public
95.2interest. In making this determination, the office must identify and consider advantages
95.3and disadvantages for various stakeholders, including taxpayers, workers, transportation
95.4and transit providers and operators, transportation and transit users, commercial vehicle
95.5operators, and the general public, including the impact on the state's economy. If the
95.6proposed project serves the public interest, the office must evaluate the proposals
95.7according to the criteria specified in this section.
95.8    Subd. 4. Public-private agreement. (a) A public-private agreement between the
95.9commissioner or the council and a private entity shall, at a minimum, specify:
95.10(1) the planning, acquisition, financing, development, design, construction,
95.11reconstruction, replacement, improvement, maintenance, management, repair, leasing, or
95.12operation of the project;
95.13(2) the term of the public-private agreement;
95.14(3) the type of property interest, if any, that the private entity will have in the project;
95.15(4) a description of the actions the commissioner or council may take to ensure
95.16proper maintenance of the project;
95.17(5) whether user fees will be collected on the project and the basis by which the user
95.18fees shall be determined and modified along with identification of the public agency that
95.19will determine and modify fees;
95.20(6) compliance with applicable federal, state, and local laws;
95.21(7) grounds for termination of the public-private agreement by the commissioner
95.22or council;
95.23(8) adequate safeguards for the traveling public and residents of the state in event of
95.24default on the contract;
95.25(9) the extent and nature of involvement of public employees in the proposed project;
95.26(10) financial protection for the state in the event of default; and
95.27(11) procedures for amendment of the agreement.
95.28(b) A public-private agreement between the commissioner or council and a private
95.29entity may provide for:
95.30(1) review and approval by the commissioner or council of the private entity's plans
95.31for the development and operation of the project;
95.32(2) inspection by the commissioner or council of construction and improvements
95.33to the project;
95.34(3) maintenance by the private entity of a liability insurance policy;
95.35(4) filing of appropriate financial statements by the private entity on a periodic basis;
95.36(5) filing of traffic reports by the private entity on a periodic basis;
96.1(6) financing obligations of the commissioner or council and the private entity;
96.2(7) apportionment of expenses between the commissioner or council and the private
96.3entity;
96.4(8) the rights and remedies available in the event of a default or delay;
96.5(9) the rights and duties of the private entity, the commissioner or council, and other
96.6state or local governmental entities with respect to the use of the project;
96.7(10) the terms and conditions of indemnification of the private entity by the
96.8commissioner or council;
96.9(11) assignment, subcontracting, or other delegations of responsibilities of (i)
96.10the private entity, or (ii) the commissioner or council under agreement to third parties,
96.11including other private entities or state agencies;
96.12(12) if applicable, sale or lease to the private entity of private property related to
96.13the project;
96.14(13) traffic enforcement and other policing issues; and
96.15(14) any other terms and conditions the commissioner or council deems appropriate.
96.16(c) The independent advisory and oversight office established under subdivision
96.171, paragraph (c), shall review any proposed contractual agreement prior to execution
96.18in order to ensure that the contract serves the public interest and the requirements of
96.19this section are met.
96.20    Subd. 5. Funding from federal government. (a) The commissioner or council may
96.21accept from the United States or any of its agencies funds that are available to the state
96.22for carrying out the pilot program, whether the funds are available by grant, loan, or
96.23other financial assistance.
96.24(b) The commissioner or council may enter into agreements or other arrangements
96.25with the United States or any of its agencies as necessary for carrying out the pilot program.
96.26(c) The commissioner or council shall seek to maximize project funding from
96.27nonstate sources and may combine federal, state, local, and private funds to finance a
96.28public-private partnership pilot project.
96.29    Subd. 6. Reporting. By August 1, 2016, and annually by August 1 thereafter, the
96.30commissioner and council shall submit to the chairs and ranking minority members of the
96.31house of representatives and senate committees having jurisdiction over transportation
96.32policy and finance a list of all agreements executed under the pilot program authority. The
96.33list must identify each agreement, the contracting entities, contract amount and duration,
96.34any repayment requirements, and provide an update on the project's progress. The list
96.35may be submitted electronically and is subject to Minnesota Statutes, section 3.195,
96.36subdivision 1.
97.1EFFECTIVE DATE.This section is effective July 1, 2016.

97.2    Sec. 26. TRANSPORTATION PROJECT SELECTION PROCESS.
97.3    Subdivision 1. Adoption of process and public input. The commissioner of
97.4transportation shall, after consultation with metropolitan planning organizations, regional
97.5development commissions, area transportation partnerships, local governments, and the
97.6Metropolitan Council, draft a proposed transportation project data-driven evaluation
97.7process to provide an objective and consistent analysis to assist in developing the
97.8statewide transportation plan and prioritization of highway construction, reconstruction,
97.9and improvement projects in the state transportation improvement program. No later than
97.10September 1, 2015, the proposed process must be reported to the chairs and ranking
97.11minority members of the senate and house of representatives committees on transportation
97.12policy and finance and publicized, along with a schedule for public hearings and additional
97.13opportunities for public input electronically and at locations throughout the state. No later
97.14than January 10, 2016, after public comment has been heard and incorporated into the
97.15proposed evaluation process, the commissioner shall adopt a final process for use in
97.16highway project investment decisions on and after March 1, 2016.
97.17    Subd. 2. Factors in analysis. The process must be based on objective, consistent,
97.18and quantifiable analysis. Factors in the analysis must include return on investment,
97.19benefit-cost, local rankings, safety, congestion mitigation, economic development,
97.20accessibility, environmental quality, regional and metropolitan-rural balance, and land
97.21use. The process may assign different weights to factors in evaluating projects on the
97.22trunk highway system, the county state-aid highway system, and the municipal state-aid
97.23street system.
97.24    Subd. 3. Exemptions. A proposed project is exempt from the process if it is:
97.25(1) funded by a grant from:
97.26(i) the corridors of commerce program under Minnesota Statutes, section 161.088;
97.27(ii) the transportation economic development program under Minnesota Statutes,
97.28section 174.12; and
97.29(iii) the joint powers board under Minnesota Statutes, section 297A.992, subdivision
97.306; or
97.31(2) preservation, maintenance, capital preventive treatment or safety project that
97.32does not increase capacity of the infrastructure, or if subjecting it to the evaluation process
97.33would result in a loss of federal funds.
97.34    Subd. 4. Information on department's Web site. For each proposed project
97.35evaluated under this process, the applicable scoring process, the score for each factor,
98.1and the overall score are public information and must be publicized on the department's
98.2Web site.
98.3EFFECTIVE DATE.This section is effective the day following final enactment.

98.4    Sec. 27. ESTABLISHMENT OF ROAD-USER CHARGE WORKING GROUP.
98.5    Subdivision 1. Road-user charge. The road-user charge working group is
98.6established to study and report to the legislature concerning issues related to designing
98.7and implementing a road-user charge in this state. The road-user charge working group
98.8consists of 15 members, as follows:
98.9(1) the chairs and ranking minority members of the house of representatives and
98.10senate committees or divisions with jurisdiction over transportation policy and finance;
98.11(2) the commissioner of transportation or a designee; and
98.12(3) public members who have relevant expertise and interest, including members or
98.13representatives of transportation user groups; the telecommunications industry; the data
98.14security and privacy industry; privacy rights advocacy groups; and research and policy
98.15making bodies. Of these members, five must be appointed by the speaker of the house,
98.16and five must be appointed by the majority leader of the senate.
98.17    Subd. 2. Duties of road-user charge working group. The working group shall
98.18identify and consider policy and technical issues related to funding state transportation
98.19infrastructure through implementation of a road-user charge as an alternative to the motor
98.20fuels tax. The working group shall study and make recommendations concerning cost,
98.21privacy, jurisdictional issues, feasibility, complexity, public acceptance, use of revenues,
98.22possible constitutional dedication, security, compliance, data collection technology that
98.23includes privacy and user options, implementation, and related issues. In addition, the
98.24working group shall seek and facilitate collaboration with other states; review pilot project
98.25and implementation results from other states and countries; and explore federal funding
98.26opportunities.
98.27    Subd. 3. Report of working group. By January 15, 2017, the working group shall
98.28submit a report to the chairs of the committees in the senate and house of representatives
98.29with primary jurisdiction over transportation policy and transportation finance. The report
98.30must state findings and recommendations concerning a road-user charge. The report may
98.31recommend the development by the commissioner of transportation of an implementation
98.32plan that may:
98.33(1) identify a project implementation timeline, which may include pilot programs,
98.34limited initial deployment, multiple fee structure options for road users, and phased
98.35implementation;
99.1(2) identify a fee structure, which must include distance traveled and may include
99.2additional factors such as vehicle weight, vehicle impact on roadways, fuel type, and
99.3vehicle type;
99.4(3) include a fiscal analysis that identifies costs, revenue projections, and any
99.5associated tax rate changes;
99.6(4) establish a technological and operational architecture for the system;
99.7(5) address program and system administration, including but not limited to data
99.8privacy, data integrity, and accuracy of information; and
99.9(6) be based in surface transportation finance principles, including:
99.10(i) efficiency, including impacts on road system use and land use;
99.11(ii) equity across road system users and vehicles, including (A) user payment
99.12relative to user costs imposed; (B) the distribution of the burden of a fee structure that
99.13includes the factors required under Minnesota Statutes, section 270C.13, subdivision 1,
99.14clauses (1) to (3); and (C) identification of and possible fiscal offsets for any disparate
99.15impact on users based on geographic location of their residency;
99.16(iii) revenue adequacy and long-term suitability of funding after complete
99.17implementation;
99.18(iv) environmental impacts and sustainability;
99.19(v) administrative and technical feasibility, including data privacy and protection;
99.20(vi) transparency; and
99.21(vii) accountability.
99.22    Subd. 4. Administrative provisions. (a) The commissioner of transportation or
99.23the commissioner's designee shall convene the initial meeting of the working group no
99.24later than September 1, 2015. Upon request of the working group, the commissioner shall
99.25provide meeting space and administrative services for the group. The members of the
99.26working group shall elect a chair or cochairs from the members of the working group at
99.27the initial meeting.
99.28    (b) Public members of the working group serve without compensation or payment of
99.29expenses.
99.30    (c) The working group expires May 1, 2017, or upon submission of the report
99.31required under subdivision 3, whichever is earlier.
99.32    (d) The working group may accept gifts and grants, which are accepted on behalf of
99.33the state and constitute donations to the state. Funds received under this paragraph are
99.34appropriated to the commissioner of transportation for purposes of the working group.
99.35    Subd. 5. Deadline for appointments and designations. The appointments and
99.36designations for the road-user charge working group must be completed by August 1, 2015.

100.1    Sec. 28. REGULAR ROUTE TRANSIT REQUIREMENT.
100.2By September 1, 2015, the Metropolitan Council shall institute regular route transit
100.3service to the city of Hastings, provided that the governing body of the city of Hastings
100.4has entered into an agreement with the Metropolitan Council, no later than July 1, 2015, to
100.5become a part of the transit taxing district under Minnesota Statutes, section 473.4461.
100.6EFFECTIVE DATE.This section is effective the day following final enactment.

100.7    Sec. 29. ENHANCED ORGANIZATIONAL EFFECTIVENESS AND
100.8INNOVATION REVIEW.
100.9(a) A review and assessment of the organizational structure of the Department of
100.10Transportation is required to enhance organizational effectiveness, encourage prudent
100.11allocation of resources, and deliver the greatest value to Minnesota. This review and
100.12assessment shall be completed by a partnership that includes the Humphrey School of
100.13Public Affairs, Carlson School of Management, and the State Smart Transportation
100.14Initiative at the University of Wisconsin.
100.15(b) A preliminary report of this review and assessment shall be submitted to the
100.16chairs and ranking minority members of the legislative committees having jurisdiction
100.17over transportation policy and finance by December 15, 2015, with the final report
100.18submitted by June 30, 2016.
100.19(c) At a minimum, the review and assessment shall include:
100.20(1) the relationship of each district, division, office, and section of the department to
100.21the state's transportation goals under Minnesota Statutes, section 174.01, the department's
100.22mission under Minnesota Statutes, section 174.02, the duties of the commissioner under
100.23Minnesota Statutes, section 174.03, the annual performance targets under Minnesota
100.24Statutes, section 174.03, subdivision 1c, and adherence to all relevant provisions of state
100.25statute and federal law;
100.26(2) the budget assigned to each district, division, office, and section of the department;
100.27(3) the ratio of employees to supervisors in each district, division, office, and section
100.28of the department;
100.29(4) recommendations identifying best practices, and comparisons with other state
100.30departments of transportation;
100.31(5) recommendations regarding the appropriate ratio of employees to supervisors
100.32for the variety of activities performed by the department;
100.33(6) recommendations regarding the appropriate increase in department operations
100.34resulting from increases in capital investments;
101.1(7) recommendations regarding the appropriate fiscal responsibility assigned to
101.2construction inspectors and engineers;
101.3(8) recommendations regarding the appropriate, fiscally constrained size of the
101.4trunk highway system; and
101.5(9) recommendations regarding how to achieve the appropriate, fiscally constrained
101.6size of the trunk highway system.
101.7EFFECTIVE DATE.This section is effective July 1, 2015.

101.8    Sec. 30. ACTIVE TRANSPORTATION PROGRAM DEVELOPMENT.
101.9(a) By October 1, 2015, the Advisory Committee on Nonmotorized Transportation
101.10under Minnesota Statutes, section 174.37, shall develop and submit recommendations to
101.11each administering authority under Minnesota Statutes, section 174.38, for developing
101.12project evaluation and selection processes under Minnesota Statutes, section 174.38,
101.13subdivision 7. The advisory committee may consult with representatives from the
101.14Bicycle Alliance of Minnesota, Minnesota Chamber of Commerce, Metropolitan
101.15Council Transportation Accessibility Advisory Committee, Minnesota Department of
101.16Transportation district area transportation partnerships, Minnesota State Council on
101.17Disability, organizations representing elderly populations, and public health organizations
101.18with experience in active transportation.
101.19(b) In its next annual report under Minnesota Statutes, section 174.37, subdivision
101.204, the advisory committee shall include a summary of the recommendations under this
101.21section and submit a copy to the chairs and ranking minority members of the legislative
101.22committees with jurisdiction over transportation policy and finance. The report is subject
101.23to Minnesota Statutes, section 3.195.
101.24EFFECTIVE DATE.This section is effective the day following final enactment.

101.25    Sec. 31. REPORT ON DEDICATED FUND EXPENDITURES.
101.26By January 15, 2016, the commissioner of management and budget shall submit
101.27a report to the chairs and ranking minority members of the legislative committees with
101.28jurisdiction over transportation finance. The report must list detailed expenditures and
101.29transfers from the trunk highway fund and highway user tax distribution fund for fiscal
101.30years 2010 through 2015, and shall include information on the purpose of each expenditure.

101.31    Sec. 32. ROAD DESIGN STANDARDS.
102.1By August 15, 2016, the commissioner of transportation shall, in collaboration
102.2with city and county engineers, establish and adopt design standards and guidelines to
102.3be applied consistently to trunk highways, county state-aid highways, and municipal
102.4state-aid streets with similar characteristics. The standards and guidelines must align the
102.5state-aid standards with the Department of Transportation trunk highway standards and
102.6technical memoranda as appropriate. The commissioner shall report the adopted standards
102.7and guidelines to the chairs and ranking minority members of the senate and house of
102.8representatives committees with jurisdiction over transportation policy by August 15,
102.92016, and present an interim report by March 15, 2016.
102.10EFFECTIVE DATE.This section is effective the day following final enactment.