1.1 	A bill for an act
1.2 	relating to transportation; authorizing sale of trunk highway bonds for capital 
1.3 	improvements related to transportation; establishing transit fund and accounts; 
1.4 	providing for treatment and allocation of tax proceeds related to motor vehicles; 
1.5 	modifying proposed amendment to Minnesota Constitution and its proposed 
1.6 	ballot question; modifying provisions relating to the town bridge account, old 
1.7 	automobile liens, tow truck operators, impounded vehicles, the rail service 
1.8 	improvement account, the tax attributable to fuel used by all-terrain vehicles, 
1.9 	transit service contracts, and a connector highway agreement; requiring a 
1.10 	study; appropriating money;amending Minnesota Statutes 2004, sections 
1.11 	16A.88; 161.082, subdivision 2a; 168B.06, subdivision 1; 168B.07, by adding a 
1.12 	subdivision; 169.829, subdivision 2; 169.86, by adding a subdivision; 222.50, 
1.13 	subdivisions 6, 7; 296A.18, subdivision 4; 297A.94; 297B.09, subdivision 1; 
1.14 	473.384, subdivisions 1, 2; Minnesota Statutes 2005 Supplement, sections 
1.15 	168A.20, subdivision 5; 297A.815, by adding a subdivision;  Laws 2005, chapter 
1.16 	88, article 3, section 10; proposing coding for new law in Minnesota Statutes, 
1.17 	chapter 167.
1.18 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.19 	ARTICLE 1
1.20 	TRANSPORTATION FINANCE

1.21	Section 1. APPROPRIATIONS
 	
1.22 	The sums shown in the column under "APPROPRIATIONS" are appropriated from 
1.23 	the general fund, or another named fund, to the state agencies or officials indicated, to be 
1.24 	spent for the purposes indicated, for fiscal year 2007. These appropriations are in addition 
1.25 	to those in Laws 2005, First Special Session chapter 6.

1.26	SUMMARY
	
1.27	TRANSPORTATION
	$
	121,978,000
	
2.1	ADMINISTRATION
		10,161,000
	
2.2	FINANCE
		41,000
	
2.3	TOTAL
	$
	132,180,000

2.4	Summary by Fund
	
2.5	Trunk Highway Bond Proceeds Account
	$
	43,430,000
	
2.6	Trunk Highway Fund
		88,000,000
	
2.7	General Fund
		750,000
	
2.8	TOTAL
	$
	132,180,000

2.9				APPROPRIATIONS

2.10	Sec. 2. TRANSPORTATION

2.11
2.12
2.13	Subdivision 1.To the commissioner of 
transportation for the purposes specified in this 
section:
				121,978,000

2.14	Summary by Fund
	
2.15
2.16	Trunk Highway Bond Proceeds 
Account
		33,228,000
	
2.17	Trunk Highway Fund
		88,000,000
	
2.18	General Fund
		750,000

2.19	Subd.  2.Infrastructure investment support
 				5,000,000
	
2.20 	This appropriation is from the trunk highway 
2.21 	fund for program delivery related to projects 
2.22 	identified in the federal High Priority Projects 
2.23 	Program, and is added to appropriations in 
2.24 	Laws 2005, First Special Session chapter 
2.25 	6, article 1, section 2. This is a onetime 
2.26 	appropriation.

2.27	Subd.  3.State road construction
 				83,000,000
	
3.1 	This appropriation is from the trunk highway 
3.2 	fund, and is added to appropriations in Laws 
3.3 	2005, First Special Session chapter 6, article 
3.4 	1, section 2, for the actual construction, 
3.5 	reconstruction, and improvement of trunk 
3.6 	highways, including design-build contracts 
3.7 	and consultant usage to support these 
3.8 	activities. This includes the cost of actual 
3.9 	payments to landowners for lands acquired 
3.10 	for highway rights-of-way, payments to 
3.11 	lessees, interest subsidies, and relocation 
3.12 	expenses. Of this amount, $50,000,000 may 
3.13 	only be used for projects identified in the 
3.14 	federal High Priority Projects Program. This 
3.15 	is a onetime appropriation.

3.16
3.17	Subd.  4.Town road sign replacement 
program
 				750,000
	
3.18 	This appropriation is from the general fund 
3.19 	to implement the town road sign replacement 
3.20 	program established in Laws 2005, First 
3.21 	Special Session chapter 6, article 3, section 
3.22 	89. For the purpose of this appropriation, 
3.23 	implementation includes the purchase and 
3.24 	installation of new signs. This appropriation 
3.25 	may be used to satisfy any local matching 
3.26 	requirement for the receipt of federal funds. 
3.27 	Designated funds not allocated by July 1, 
3.28 	2008, cancel and revert to the general fund.

3.29	Subd.  5.Mankato headquarters
 				18,228,000
	
3.30 	This appropriation is from the bond proceeds 
3.31 	account in the trunk highway fund to design, 
3.32 	construct, furnish, and equip a new district 
3.33 	headquarters facility in Mankato.

3.34	Subd.  6.Trunk highway program delivery
 				15,000,000
	
4.1 	This appropriation is from the bond proceeds 
4.2 	account in the trunk highway fund for 
4.3 	program delivery and for the cost of actual 
4.4 	payments to landowners for lands acquired 
4.5 	for highway rights-of-way, payments to 
4.6 	lessees, interest subsidies, and relocation 
4.7 	expenses.

4.8	Sec. 3. ADMINISTRATION

4.94.10
	Exterior renovation of transportation 
building
 				10,161,000
	
4.11 	This appropriation is to the commissioner 
4.12 	of administration from the bond proceeds 
4.13 	account in the trunk highway fund to 
4.14 	renovate the exterior of the Department of 
4.15 	Transportation Building at 395 John Ireland 
4.16 	Boulevard in St. Paul.

4.17	Sec. 4. FINANCE

4.18	Bond sale expenses
 				41,000
	
4.19 	This appropriation is to the commissioner 
4.20 	of finance from the bond proceeds account 
4.21 	in the trunk highway fund for bond sale 
4.22 	expenses under Minnesota Statutes, section 
4.23 	16A.641, subdivision 8.

4.24 	Sec. 5. BOND SALE AUTHORIZATION.
 4.25 	To provide the money appropriated in this article from the bond proceeds account in 
4.26 	the trunk highway fund, the commissioner of finance shall sell and issue bonds of the state 
4.27 	in an amount up to $43,430,000 in the manner, on the terms, and with the effect prescribed 
4.28 	by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota Constitution, 
4.29 	article XIV, section 11, at the times and in the amounts requested by the commissioner 
4.30 	of transportation.  The proceeds of the bonds, except accrued interest and any premium 
5.1 	received on the sale of the bonds, must be credited to the bond proceeds account in the 
5.2 	trunk highway fund.

5.3 	Sec. 6. Minnesota Statutes 2004, section 16A.88, is amended to read:
5.4 	16A.88 TRANSIT FUNDS FUND.
5.5 		Subdivision 1.Greater Minnesota transit fund account. The greater Minnesota 
5.6 	transit fund account is established within the state treasury transit fund. Money in the fund
5.7 	account is annually appropriated to the commissioner of transportation for assistance to 
5.8 	transit systems outside the metropolitan area under section  174.24. Beginning in fiscal 
5.9 	year 2003, The commissioner may use up to $400,000 each year for administration of the 
5.10 	transit program. The commissioner shall use the fund account for transit operations as 
5.11 	provided in section  174.24 and related program administration. 
5.12 		Subd. 2.Metropolitan area transit fund account. The metropolitan area transit 
5.13 	fund account is established within the state treasury transit fund. All money in the fund
5.14 	account is annually appropriated to the Metropolitan Council for the funding of transit 
5.15 	systems within the metropolitan area under sections  473.384,  473.387,  473.388, and  
5.16 	473.405 to  473.449. 
5.17 		Subd. 3.Metropolitan area transit appropriation account. The metropolitan 
5.18 	area transit appropriation account is established within the general fund. Money in the 
5.19 	account is to be used for the funding of transit systems in the metropolitan area, subject to 
5.20 	legislative appropriation.
5.21 		Subd. 4.Transit fund. A transit fund is established within the state treasury. The 
5.22 	fund receives money distributed under section 297B.09, and other money as specified by 
5.23 	law. Money in the fund must be allocated to the greater Minnesota transit account under 
5.24 	subdivision 1 and the metropolitan area transit account under subdivision 2, and must be 
5.25 	used for transit purposes.

5.26 	EFFECTIVE DATE. This section is effective upon adoption of the constitutional 
5.27 	amendment proposed in Laws 2005, chapter 88, article 3, section 9, by the people at 
5.28 	the 2006 general election.

5.29 	Sec. 7. Minnesota Statutes 2005 Supplement, section 297A.815, is amended by adding 
5.30 	a subdivision to read:
5.31 		Subd. 3.Deposit of revenues. Notwithstanding any law to the contrary, money 
5.32 	collected and received under this section must be deposited in the same manner and in the 
5.33 	same proportions as provided for revenues collected under chapter 297B.

6.1 	EFFECTIVE DATE. This section is effective beginning with revenues collected 
6.2 	and remitted on and after July 1, 2006.

6.3 	Sec. 8. Minnesota Statutes 2004, section 297A.94, is amended to read:
6.4 	297A.94 DEPOSIT OF REVENUES.
6.5 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
6.6 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
6.7 	treasury and credit them to the general fund.
6.8 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
6.9 	account in the special revenue fund if:
6.10 	(1) the taxes are derived from sales and use of property and services purchased for 
6.11 	the construction and operation of an agricultural resource project; and
6.12 	(2) the purchase was made on or after the date on which a conditional commitment 
6.13 	was made for a loan guaranty for the project under section  41A.04, subdivision 3. 
6.14 	The commissioner of finance shall certify to the commissioner the date on which the 
6.15 	project received the conditional commitment. The amount deposited in the loan guaranty 
6.16 	account must be reduced by any refunds and by the costs incurred by the Department of 
6.17 	Revenue to administer and enforce the assessment and collection of the taxes.
6.18 	(c) The commissioner shall deposit the revenues, including interest and penalties, 
6.19 	derived from the taxes imposed on sales and purchases included in section  297A.61, 
6.20 	subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them 
6.21 	as follows: 
6.22 	(1) first to the general obligation special tax bond debt service account in each fiscal 
6.23 	year the amount required by section  16A.661, subdivision 3, paragraph (b); and 
6.24 	(2) after the requirements of clause (1) have been met, the balance to the general 
6.25 	fund.
6.26 	(d) The commissioner shall deposit the revenues, including interest and penalties, 
6.27 	collected under section  297A.64, subdivision 5, in the state treasury and credit them to the 
6.28 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
6.29 	tax distribution fund an amount equal to the excess fees collected under section  297A.64, 
6.30 	subdivision 5, for the previous calendar year. 
6.31 	(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and 
6.32 	for fiscal year 2004 and thereafter,  72.43 percent of the revenues, including interest and 
6.33 	penalties, transmitted to the commissioner under section  297A.65, must be deposited by 
6.34 	the commissioner in the state treasury as follows: 
7.1 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account 
7.2 	in the game and fish fund, and may be spent only on activities that improve, enhance, or 
7.3 	protect fish and wildlife resources, including conservation, restoration, and enhancement 
7.4 	of land, water, and other natural resources of the state;
7.5 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
7.6 	may be spent only for state parks and trails;
7.7 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
7.8 	may be spent only on metropolitan park and trail grants;
7.9 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
7.10 	may be spent only on local trail grants; and
7.11 	(5) two percent of the receipts must be deposited in the natural resources fund, 
7.12 	and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and 
7.13 	Conservatory, and the Duluth Zoo.
7.14 	(f) The revenue dedicated under paragraph (e) may not be used as a substitute 
7.15 	for traditional sources of funding for the purposes specified, but the dedicated revenue 
7.16 	shall supplement traditional sources of funding for those purposes. Land acquired with 
7.17 	money deposited in the game and fish fund under paragraph (e) must be open to public 
7.18 	hunting and fishing during the open season, except that in aquatic management areas or 
7.19 	on lands where angling easements have been acquired, fishing may be prohibited during 
7.20 	certain times of the year and hunting may be prohibited. At least 87 percent of the money 
7.21 	deposited in the game and fish fund for improvement, enhancement, or protection of fish 
7.22 	and wildlife resources under paragraph (e) must be allocated for field operations.
7.23 	(g) The revenues, including interest and penalties, collected under section 297A.815 
7.24 	must be deposited by the commissioner as provided for in that section.

7.25 	EFFECTIVE DATE. This section is effective beginning with revenues collected 
7.26 	and remitted on and after July 1, 2006.

7.27 	Sec. 9. Laws 2005, chapter 88, article 3, section 10, is amended to read:
7.28 	Sec. 10.  SUBMISSION TO VOTERS.
7.29 	The constitutional amendment proposed in section 12 9 must be presented to the 
7.30 	people at the 2006 general election. The question submitted must be:
7.31 	"Shall the Minnesota Constitution be amended to dedicate revenue from a tax on the 
7.32 	sale of new and used motor vehicles over a five-year period, so that after June 30, 2011, all 
7.33 	of the revenue is dedicated at least 40 percent for public transit assistance and not more 
7.34 	than 60 percent for highway purposes? "Shall the Minnesota Constitution be amended so 
8.1 	that after June 30, 2011, all of the revenues from the existing tax on the sale of new and 
8.2 	used motor vehicles are dedicated to highways and public transit?

8.3		Yes .......
	
8.4		No ........"
	
8.5 	

8.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

8.7 	Sec. 10. BALLOT PLACEMENT.
 8.8 	The secretary of state shall place as the first question on the ballot at the 2006 
8.9 	general election the constitutional amendment proposed in Laws 2005, chapter 88, article 
8.10 	3, section 10, as amended by this act.

8.11 	Sec. 11. EFFECTIVE DATE.
 8.12 	Except as specifically provided otherwise, this article is effective July 1, 2006.

8.13 	ARTICLE 2
8.14 	TRUNK HIGHWAY BONDING

8.15	Section 1. APPROPRIATIONS
 	
8.16 	The sums shown in the column under "APPROPRIATIONS" are appropriated from 
8.17 	the general fund, or another named fund, to the state agencies or officials indicated, to be 
8.18 	spent for the purposes indicated.

8.19				APPROPRIATIONS

8.20	Sec. 2. TRANSPORTATION

8.21
8.22
8.23	Subdivision 1.To the commissioner of 
transportation for the purposes specified in this 
section:
				2,485,000,000

8.24	Subd.  2.Trunk highway program delivery
 				35,000,000
	
8.25 	This appropriation is from the bond proceeds 
8.26 	account in the trunk highway fund for 
8.27 	program delivery and for the cost of actual 
8.28 	payments to landowners for lands acquired 
9.1 	for highway rights-of-way, payments to 
9.2 	lessees, interest subsidies, and relocation 
9.3 	expenses.

9.4	Subd.  3.Trunk highway construction
 				2,450,000,000
	
9.5 	This appropriation is from the bond proceeds 
9.6 	account in the trunk highway fund for the 
9.7 	actual construction, reconstruction, and 
9.8 	improvement of trunk highways. This 
9.9 	includes the cost of actual payments to 
9.10 	landowners for lands acquired for highway 
9.11 	rights-of-way, payments to lessees, interest 
9.12 	subsidies, and relocation expenses. The 
9.13 	commissioner of transportation may use up 
9.14 	to $375,000,000 of this appropriation for 
9.15 	program delivery.

9.16	Sec. 3. FINANCE
 					
9.17	Bond sale expenses
 						2,485,000
	
9.18 	This appropriation is to the commissioner 
9.19 	of finance from the bond proceeds account 
9.20 	in the trunk highway fund for bond sale 
9.21 	expenses under Minnesota Statutes, section 
9.22 	16A.641, subdivision 8, and section 167.50, 
9.23 	subdivision 4.

9.24 	Sec. 4. [167.515] MOTOR VEHICLE SALES TAX COLLECTION ACCOUNT.
9.25 	The commissioner of finance shall maintain in the trunk highway fund a separate 
9.26 	account designated as the Minnesota motor vehicle sales tax collection account. Money in 
9.27 	the account consists of proceeds allocated to the account from the motor vehicles sales tax 
9.28 	under section 297B.09. Money from the account may be spent for debt service incurred 
9.29 	pursuant to section 2, subdivisions 2 and 3. 

9.30 	Sec. 5. Minnesota Statutes 2004, section 297B.09, subdivision 1, is amended to read:
9.31 		Subdivision 1.Deposit of revenues. (a) Money collected and received under this 
9.32 	chapter must be deposited as provided in this subdivision.
10.1 	(b) From July 1, 2002, to June 30, 2003, 32 percent of the money collected and 
10.2 	received must be deposited in the highway user tax distribution fund, 20.5 percent must be 
10.3 	deposited in the metropolitan area transit fund under section  16A.88, and  1.25 percent 
10.4 	must be deposited in the greater Minnesota transit fund under section  16A.88. The 
10.5 	remaining money must be deposited in the general fund.
10.6 	(c) From July 1, 2003, to June 30, 2007, 30 percent of the money collected and 
10.7 	received must be deposited in the highway user tax distribution fund, 21.5 percent must be 
10.8 	deposited in the metropolitan area transit fundaccount under section 16A.88, 1.43 percent 
10.9 	must be deposited in the greater Minnesota transit fund account under section 16A.88, 
10.10 	0.65 percent must be deposited in the county state-aid highway fund, and 0.17 percent 
10.11 	must be deposited in the municipal state-aid street fund. The remaining money must 
10.12 	be deposited in the general fund. 
10.13 	(d) On and after (c) From July 1, 2007, 32 to June 30, 2008, 38.25 percent of the 
10.14 	money collected and received must be deposited in the highway user tax distribution 
10.15 	fund, 20.5 percent must be deposited in the metropolitan area transit fund under section 
10.16 	16A.88, and 1.25 25.5 percent must be deposited in the greater Minnesota transit fund 
10.17 	under section 16A.88. The remaining money must be deposited in the general fund. Of 
10.18 	the amount from this paragraph deposited in the trunk highway fund, 16.5 percent must be 
10.19 	deposited in the motor vehicle sales tax collection account established in section 167.515.
10.20 	(d) From July 1, 2008, to June 30, 2009, 44.25 percent must be deposited in the 
10.21 	highway user tax distribution fund, and 29.5 percent must be deposited in the transit fund. 
10.22 	The remaining money must be deposited in the general fund. Of the amount from this 
10.23 	paragraph deposited in the trunk highway fund, 27.5 percent must be deposited in the 
10.24 	motor vehicle sales tax collection account established in section 167.515.
10.25 	(e) From July 1, 2009, to June 30, 2010, 50.25 percent must be deposited in the 
10.26 	highway user tax distribution fund, and 33.5 percent must be deposited in the transit fund. 
10.27 	The remaining money must be deposited in the general fund. Of the amount from this 
10.28 	paragraph deposited in the trunk highway fund, 36.5 percent must be deposited in the 
10.29 	motor vehicle sales tax collection account established in section 167.515.
10.30 	(f) From July 1, 2010, to June 30, 2011, 56.25 percent must be deposited in the 
10.31 	highway user tax distribution fund, and 37.5 percent must be deposited in the transit fund. 
10.32 	The remaining money must be deposited in the general fund. Of the amount from this 
10.33 	paragraph deposited in the trunk highway fund, 43 percent must be deposited in the motor 
10.34 	vehicle sales tax collection account established in section 167.515.
10.35 	(g) On and after July 1, 2011, 60 percent must be deposited in the highway user tax 
10.36 	distribution fund, and 40 percent must be deposited in the transit fund. Of the amount 
11.1 	from this paragraph deposited in the trunk highway fund, 46.7 percent must be deposited 
11.2 	in the motor vehicle sales tax collection account established in section 167.515.

11.3 	Sec. 6. BOND SALE AUTHORIZATION.
 11.4 	To provide the money appropriated in this article from the bond proceeds account 
11.5 	in the trunk highway fund, the commissioner of finance shall sell and issue bonds of 
11.6 	the state in an amount up to $2,487,485,000 in the manner, on the terms, and with the 
11.7 	effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota 
11.8 	Constitution, article XIV, section 11, at the times and in the amounts requested by the 
11.9 	commissioner of transportation.  The proceeds of the bonds, except accrued interest and 
11.10 	any premium received on the sale of the bonds, must be credited to the bond proceeds 
11.11 	account in the trunk highway fund.

11.12 	Sec. 7. EFFECTIVE DATE.
 11.13 	This article is effective upon adoption of the constitutional amendment proposed in 
11.14 	Laws 2005, chapter 88, article 3, section 9, by the people at the 2006 general election. 

11.15 	ARTICLE 3
11.16 	TRANSPORTATION POLICY

11.17 	Section 1. Minnesota Statutes 2004, section 161.082, subdivision 2a, is amended to 
11.18 	read:
11.19 		Subd. 2a.Town bridges and culverts; town road account. (a) Money in the 
11.20 	town bridge account must be expended on town road bridge structures that are ten feet 
11.21 	or more in length and on town road culverts that replace existing town road bridges. In 
11.22 	addition, if the present bridge structure is less than ten feet in length but a hydrological 
11.23 	survey indicates that the replacement bridge structure or culvert must be ten feet or more 
11.24 	in length, then the bridge or culvert is eligible for replacement funds.
11.25 	(b) In addition, if a culvert that replaces a deficient bridge is in a county 
11.26 	comprehensive water plan approved by the Board of Water and Soil Resources and the 
11.27 	Department of Natural Resources, the costs of the culvert and roadway grading other than 
11.28 	surfacing are eligible for replacement funds up to the cost of constructing a replacement 
11.29 	bridge.
11.30 	(c) The expenditures on a bridge structure or culvert may be paid from the county 
11.31 	turnback account and may be for 100 percent of the cost of the replacement structure or 
11.32 	culvert or for 100 percent of the cost of rehabilitating the existing structure.
12.1 	(d) The town bridge account may be used to pay the costs to abandon an existing 
12.2 	bridge that is deficient and in need of replacement, but where no replacement will be 
12.3 	made. It may also be used to pay the costs to construct a road or street to facilitate the 
12.4 	abandonment of an existing bridge determined by the commissioner to be deficient, if the 
12.5 	commissioner determines that construction of the road or street is more cost efficient 
12.6 	than replacing the existing bridge.
12.7 	(e) When bridge approach construction work exceeds $10,000 in costs, or when 
12.8 	the county engineer determines that the cost of the replacement culverts alone will not 
12.9 	exceed $20,000, or engineering costs exceed $10,000, the town shall be eligible for 
12.10 	financial assistance from the town bridge account. Financial assistance shall be requested 
12.11 	by resolution of the county board and shall be limited to:
12.12 	(1) 100 percent of the cost of the bridge approach work that is in excess of $10,000;
12.13 	(2) 100 percent of the cost of the replacement culverts when the cost does not 
12.14 	exceed $20,000 and the town board agrees to be responsible for all the other costs, which 
12.15 	may include costs for structural removal, installation, and permitting. The replacement 
12.16 	structure design and costs shall be approved and certified by the county engineer, but need 
12.17 	not be subsequently approved by the Department of Transportation; or
12.18 	(3) 100 percent of all related engineering costs that exceed $10,000, or in the case 
12.19 	of towns with a net tax capacity of less than $200,000 $300,000, 100 percent of the 
12.20 	engineering costs.
12.21 	(f) Money in the town road account must be distributed as provided in section  
12.22 	162.081. 

12.23 	EFFECTIVE DATE. This section is effective July 1, 2006.

12.24 	Sec. 2. Minnesota Statutes 2005 Supplement, section 168A.20, subdivision 5, is 
12.25 	amended to read:
12.26 		Subd. 5.Satisfaction of automobile lien seven years old; release. (a) A security 
12.27 	interest perfected under this chapter expires may be canceled seven years from the 
12.28 	perfection date for a passenger automobile, as defined in section 168.011, subdivision 
12.29 	7, upon the request of the owner of the passenger automobile, if the owner has paid the 
12.30 	lien in full and is unable to locate the lienholder to obtain a lien release. At a minimum, 
12.31 	the owner must send a letter to the lienholder by certified mail, return receipt requested, 
12.32 	requesting a lien release. If the owner is unable to obtain a lien release by sending a 
12.33 	letter by certified mail, then the owner must present to the department or its agent the 
12.34 	returned letter as evidence of the attempted contact. This subdivision applies only to 
12.35 	vehicle owners who are individuals.
13.1 	(b) A lien holder may notify the department in writing or in a format approved by 
13.2 	the department during the sixth year of the lien, no later than 90 days in advance of the 
13.3 	seven-year anniversary, if the lien will not be satisfied during this registration period and 
13.4 	the lien must be extended up to seven additional years as requested by the lien holder.

13.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

13.6 	Sec. 3. Minnesota Statutes 2004, section 168B.06, subdivision 1, is amended to read:
13.7 		Subdivision 1.Contents; notice given within five days. When an impounded 
13.8 	vehicle is taken into custody, the unit of government or impound lot operator taking it 
13.9 	into custody shall give notice to the registered vehicle owner and any lienholders of the 
13.10 	taking within five days. The notice shall:
13.11 	 (a)(1) set forth the date and place of the taking, the year, make, model and serial 
13.12 	number of the impounded motor vehicle if such information can be reasonably obtained 
13.13 	and the place where the vehicle is being held,;
13.14 	(b)(2) inform the registered vehicle owner and any lienholders of their right to 
13.15 	reclaim the vehicle under section  168B.07, and;
13.16 	(c) (3) state that failure of the owner or lienholders to exercise their right to reclaim 
13.17 	the vehicle and contents within the appropriate time allowed under section  168B.051, 
13.18 	subdivision 1, 1a, or 2, shall be deemed a waiver by them of all right, title, and interest in 
13.19 	the vehicle and remaining contents and a consent to the transfer of title to and disposal or 
13.20 	sale of the vehicle and remaining contents pursuant to section  168B.08.; and 
13.21 	(4) state: ??a????You, the registered owner, have the right to pick up your contents from 
13.22 	your vehicle, whether or not you give up the right to reclaim your vehicle."

13.23 	Sec. 4. Minnesota Statutes 2004, section 168B.07, is amended by adding a subdivision 
13.24 	to read:
13.25 		Subd. 3.Retrieval of contents.  A unit of government or impound lot operator 
13.26 	may establish a reasonable procedure for retrieval of vehicle contents. At any time 
13.27 	before the expiration of the waiting periods provided in section 168B.051, subdivision 
13.28 	1, 1a, or 2, the owner of an impounded vehicle has the right to retrieve, without charge, 
13.29 	any and all contents. For the purposes of this subdivision, "contents" means all personal 
13.30 	belongings and does not include any permanently affixed mechanical or nonmechanical: 
13.31 	(i) automobile parts; (ii) automobile body parts; or (iii) automobile accessories, including 
13.32 	audio or video players. 

13.33 	Sec. 5. Minnesota Statutes 2004, section 169.829, subdivision 2, is amended to read:
14.1 		Subd. 2.Tow truck. Sections  169.822 to  169.828 do not apply to a tow truck or 
14.2 	towing vehicle when towing a disabled or damaged vehicle damaged in such manner that 
14.3 	the towed vehicle cannot be towed from the rear and, when the movement is temporary
14.4 	urgent, and when the movement is for the purpose of taking removing the disabled vehicle 
14.5 	from the roadway to a place of safekeeping or to a place of repair. 

14.6 	Sec. 6. Minnesota Statutes 2004, section 169.86, is amended by adding a subdivision 
14.7 	to read:
14.8 		Subd. 8.Tow truck. A tow truck or towing vehicle, when towing a disabled or 
14.9 	damaged vehicle to a place of repair or to a place of safekeeping, may exceed the length 
14.10 	and weight limitations of this chapter, subject to a $300 annual permit fee and such 
14.11 	conditions as the commissioner may prescribe.

14.12 	Sec. 7. Minnesota Statutes 2004, section 222.50, subdivision 6, is amended to read:
14.13 		Subd. 6.Grants. (a) The commissioner may approve grants from the rail service 
14.14 	improvement account for payment of up to 50  40 percent of the nonfederal share of the 
14.15 	cost of any rail line project under the federal rail service continuation program. on a rail 
14.16 	line owned by a private railroad, and up to 60 percent of the cost of any rail line project on 
14.17 	a rail line owned by a political subdivision. At least 20 percent of the cost of any rail line 
14.18 	project is the direct responsibility of the grantee and may not be paid from other state or 
14.19 	federal sources. The remaining portion of the cost of a rail line project receiving a grant 
14.20 	under this subdivision may be financed as provided under subdivision 7.
14.21 	(b) No more than 50 percent of the annual expenditures from the rail service 
14.22 	improvement account may be in the form of grants made under this subdivision. 

14.23 	Sec. 8. Minnesota Statutes 2004, section 222.50, subdivision 7, is amended to read:
14.24 		Subd. 7.Expenditures. (a) The commissioner may expend money from the rail 
14.25 	service improvement account for the following purposes:
14.26 	(1) to make transfers as provided under section  222.57 or to pay interest adjustments 
14.27 	on loans guaranteed under the state rail user and rail carrier loan guarantee program; 
14.28 	(2) to pay a portion of the costs of capital improvement projects designed to improve 
14.29 	rail service including construction or improvement of short segments of rail line such 
14.30 	as side track, team track and connections between existing lines, and construction and 
14.31 	improvement of loading, unloading, storage and transfer facilities of a rail user;
14.32 	(3) to acquire, maintain, manage and dispose of railroad right-of-way pursuant to the 
14.33 	state rail bank program;
15.1 	(4) to provide for aerial photography survey of proposed and abandoned railroad 
15.2 	tracks for the purpose of recording and reestablishing by analytical triangulation the 
15.3 	existing alignment of the inplace track;
15.4 	(5) to pay a portion of the costs of acquiring or rehabilitating a rail line by a regional 
15.5 	railroad authority established pursuant to chapter 398A;
15.6 	(6) to pay the state matching portion of federal grants for rail-highway grade 
15.7 	crossing improvement projects.
15.8 	(b) All money derived by the commissioner from the disposition of railroad 
15.9 	right-of-way or of any other property acquired pursuant to sections  222.46 to  222.62 shall 
15.10 	be deposited in the rail service improvement account.

15.11 	Sec. 9. Minnesota Statutes 2004, section 296A.18, subdivision 4, is amended to read:
15.12 		Subd. 4.All-terrain vehicle. Approximately 0.15 0.27 of one percent of all gasoline 
15.13 	received in or produced or brought into this state, except gasoline used for aviation 
15.14 	purposes, is being used for the operation of all-terrain vehicles in this state, and of the total 
15.15 	revenue derived from the imposition of the gasoline fuel tax, 0.15 0.27 of one percent is 
15.16 	the amount of tax on fuel used in all-terrain vehicles operated in this state.

15.17 	Sec. 10. Minnesota Statutes 2004, section 473.384, subdivision 1, is amended to read:
15.18 		Subdivision 1.Contracts required. The council shall make contracts with eligible 
15.19 	recipients for financial assistance to transit service within the metropolitan area. The 
15.20 	council may not give financial assistance to another transit provider without first having 
15.21 	executed a contract. A provider of transit service may receive financial assistance from 
15.22 	the council through a subcontract if the subcontractor meets the eligibility requirements 
15.23 	of subdivision 2 and has been approved by the council, and the primary contractor is 
15.24 	an organization described in section 501(c)(3) of the Internal Revenue Code of 1986, 
15.25 	as amended from time to time.
15.26 	The provisions of this section do not apply to contracts made under sections  473.386
15.27 	and  473.388. 

15.28 	Sec. 11. Minnesota Statutes 2004, section 473.384, subdivision 2, is amended to read:
15.29 		Subd. 2.Eligibility. To be eligible to receive financial assistance by contract or 
15.30 	subcontract under this section a recipient must be:
15.31 	(a) a county, statutory or home rule charter city or town or combination thereof, or 
15.32 	public authority organized and existing pursuant to chapter 398A, providing financial 
15.33 	assistance to or providing or operating public transit; or
16.1 	(b) a private provider of public transit.

16.2 	Sec. 12. TRUNK HIGHWAY 60 CONSTRUCTION.
 16.3 	Notwithstanding Minnesota Statutes, section 161.261, or any other law, the 
16.4 	commissioner of transportation may enter into an agreement with an adjoining state 
16.5 	to construct a connector highway with a length not to exceed four miles, and to erect 
16.6 	detour signs at appropriate locations, for the construction of marked Trunk Highway 60 
16.7 	to include the Bigelow Bypass.

16.8 	Sec. 13. STUDY OF TRANSPORTATION LONG-RANGE SOLUTIONS.
 16.9 	(a) The commissioner of transportation shall conduct a study to evaluate the current 
16.10 	and long-range needs of the state's transportation system, and investigate possible 
16.11 	strategies to meet these needs.
16.12 	(b) The study must include, but is not limited to:
16.13 	(1) evaluation of the current needs of the state's highway systems and bridges;
16.14 	(2) analysis and quantification of the needs for the next 20 years of the state's 
16.15 	highway systems and bridges;
16.16 	(3) comparison of estimates of revenues raised by current transportation funding 
16.17 	sources, with long-term needs of the state's transportation system;
16.18 	(4) identification of options for maintenance and improvement of the state's 
16.19 	transportation system with specific reference to factors such as changes in vehicle fuel 
16.20 	economy, availability of alternative modes of transportation, and the nation's attempts to 
16.21 	decrease dependence on foreign oil;
16.22 	(5) analysis of alternative pricing options utilized in other states, and their potential 
16.23 	for use, public acceptance, alleviation of congestion, and revenue generation in this 
16.24 	state; and
16.25 	(6) identification of options for road pricing or other alternative financing 
16.26 	mechanisms, and estimates of implementation costs, user costs, and revenue.
16.27 	(c) The commissioner shall report the results of the study to the legislature no later 
16.28 	than January 12, 2007.

16.29 	Sec. 14. EFFECTIVE DATE.
 16.30 	This article is effective the day following final enactment.