1.1 	A bill for an act
1.2 	relating to transportation finance; appropriating money for transportation, 
1.3 	Metropolitan Council, and public safety activities; providing for fund transfers, 
1.4 	general contingent accounts, and tort claims; authorizing sale and issuance of 
1.5 	trunk highway bonds for highways and transit facilities; modifying motor fuels 
1.6 	and registration taxes; allocating motor vehicle sales tax revenue; modifying 
1.7 	county state-aid allocation formula; modifying county wheelage tax; authorizing 
1.8 	local transportation sales and use taxes; modifying provisions relating to various 
1.9 	transportation-related funds and accounts; modifying fees for license plates, 
1.10 	drivers' licenses, identification cards, and state patrol escort and flight services; 
1.11 	making technical and clarifying changes;amending Minnesota Statutes 2006, 
1.12 	sections 16A.88; 161.04, subdivision 3, by adding a subdivision; 162.06; 162.07, 
1.13 	subdivision 1, by adding subdivisions; 163.051; 168.011, subdivision 6; 168.013, 
1.14 	subdivisions 1, 1a; 168.017, subdivision 3; 168.12, subdivision 5; 168A.29, 
1.15 	subdivision 1; 171.02, subdivision 3; 171.06, subdivision 2; 171.07, subdivisions 
1.16 	3a, 11; 171.20, subdivision 4; 296A.07, subdivision 3; 296A.08, subdivision 2; 
1.17 	297A.94; 297B.09, subdivision 1; 299D.09; 473.388, subdivision 4; 473.446, 
1.18 	subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 
1.19 	297A; repealing Minnesota Statutes 2006, section 174.32.
1.20 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.21 	ARTICLE 1
1.22 	TRANSPORTATION APPROPRIATIONS 

1.23	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
1.24 	The amounts shown in this section summarize direct appropriations, by fund, made 
1.25 	in this article.

1.26			2008
		2009
		Total
	
1.27	General
	$
	123,387,000
	$
	106,734,000
	$
	230,121,000
	
1.28	Special Revenue
		47,950,000
		49,038,000
		96,988,000
	
1.29	Trunk Highway
		1,164,253,000
		1,466,021,000
		2,630,274,000
	
1.30	Airports
		25,524,000
		25,592,000
		51,116,000
	
2.1	M.S.A.S.
		130,521,000
		152,066,000
		282,587,000
	
2.2	C.S.A.H.
		484,975,000
		566,506,000
		1,051,481,000
	
2.3	H.U.T.D.
		8,938,000
		9,238,000
		18,176,000
	
2.4	Total
	$
	1,985,548,000
	$
	2,375,195,000
	$
	4,360,743,000

2.5	Sec. 2. TRANSPORTATION APPROPRIATIONS.
 	
2.6 	The sums shown in the columns marked "Appropriations" are appropriated to 
2.7 	the agencies and for the purposes specified in this article.  The appropriations are from 
2.8 	the trunk highway fund, or another named fund, and are available for the fiscal years 
2.9 	indicated for each purpose.  The figures "2008" and "2009" used in this article mean that 
2.10 	the appropriations listed under them are available for the fiscal year ending June 30, 2008, 
2.11 	or June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is 
2.12 	fiscal year 2009. "The biennium" is fiscal years 2008 and 2009.  Appropriations for the 
2.13 	fiscal year ending June 30, 2007, are effective the day following final enactment.

2.14				APPROPRIATIONS
	
2.15				Available for the Year
	
2.16				Ending June 30
	
2.17					2008
		2009

2.18	Sec. 3. TRANSPORTATION.

2.19	Subdivision 1.Total appropriation
 	$
	1,743,337,000
	$
	2,143,408,000

2.20	Appropriations by Fund
	
2.21		2008
	2009
	
2.22	General
	19,830,000
	19,239,000
	
2.23	Trunk Highway
	1,082,537,000
	1,380,055,000
	
2.24	Airports
	25,474,000
	25,542,000
	
2.25	C.S.A.H.
	484,975,000
	566,506,000
	
2.26	M.S.A.S.
	130,521,000
	152,066,000
	
2.27 	(a) This appropriation is to the commissioner 
2.28 	of transportation. The amounts that may be 
2.29 	spent for each purpose are specified in the 
2.30 	following subdivisions.
2.31 	(b) Of this amount, $165,385,000 the first 
2.32 	year and $332,750,000 the second year are 
2.33 	from additional revenue from changes by this 
2.34 	act to the gasoline and special fuels excise 
3.1 	taxes, Minnesota Statutes, sections 296A.07, 
3.2 	subdivision 3, and 296A.08, subdivision 2.
3.3 	(c) Of this amount, $15,415,000 the first 
3.4 	year and $59,907,000 the second year are 
3.5 	from additional revenue from changes by 
3.6 	this act to the motor vehicle registration 
3.7 	tax, Minnesota Statutes, section 168.013, 
3.8 	subdivision 1a.
3.9 	(d) Of the amount from the general fund, 
3.10 	$9,000 the first year and $18,000 the second 
3.11 	year are for compensation adjustments.
3.12 	(e) Of the amount from the state airports 
3.13 	fund, $66,000 the first year and $134,000 
3.14 	the second year are for compensation 
3.15 	adjustments.
3.16 	(f) Of the amount from the trunk highway 
3.17 	fund, $6,138,000 the first year and 
3.18 	$12,399,000 the second year are for 
3.19 	compensation adjustments.

3.20	Subd. 2.Airport development and assistance
 		20,298,000
		20,298,000
	
3.21 	(a) This appropriation is from the state 
3.22 	airports fund and must be spent according 
3.23 	to Minnesota Statutes, section 360.305, 
3.24 	subdivision 4.
3.25 	(b) $6,000,000 the first year is a onetime 
3.26 	appropriation and $6,000,000 the second 
3.27 	year is a onetime appropriation.
3.28 	(c) Notwithstanding Minnesota Statutes, 
3.29 	section 16A.28, subdivision 6, this 
3.30 	appropriation is available for five years after 
3.31 	appropriation.
3.32 	(d) If the appropriation for either year is 
3.33 	insufficient, the appropriation for the other 
3.34 	year is available for it.

4.1	Subd. 3.Aviation support and services
 		5,998,000
		6,075,000

4.2	Appropriations by Fund
	
4.3	Trunk Highway
	847,000
	856,000
	
4.4	Airports
	5,151,000
	5,219,000
	
4.5 	$65,000 the first year and $65,000 the second 
4.6 	year are for the Civil Air Patrol.

4.7	Subd. 4.Transit
 		19,545,000
		19,561,000

4.8	Appropriations by Fund
	
4.9	General 
	18,812,000
	18,814,000
	
4.10	Trunk Highway
	733,000
	747,000
	
4.11 	The commissioner of transportation may 
4.12 	spend up to $5,000,000 from July 1, 2009, 
4.13 	through June 30, 2013, in federal transit 
4.14 	funds for capital assistance to public transit 
4.15 	systems under Minnesota Statutes, section 
4.16 	174.24. This amount is in addition to any 
4.17 	appropriations made by law for this purpose.

4.18	Subd. 5.Freight
 		5,337,000
		5,431,000

4.19	Appropriations by Fund
	
4.20	General
	353,000
	360,000
	
4.21	Trunk Highway
	4,984,000
	5,071,000

4.22
4.23	Subd. 6.Infrastructure operations and 
maintenance
 		245,138,000
		277,821,000
	
4.24 	The commissioner of transportation shall 
4.25 	reopen when feasible the Culkin safety rest 
4.26 	area, located on marked Interstate Highway 
4.27 	35.

4.28	Subd. 7.Infrastructure investment support
 		191,317,000
		218,115,000
	
4.29 	(a) $266,000 the first year and $266,000 
4.30 	the second year are available for grants to 
4.31 	metropolitan planning organizations outside 
4.32 	the seven-county metropolitan area.
4.33 	(b) $75,000 the first year and $75,000 
4.34 	the second year are for a transportation 
5.1 	research contingent account to finance 
5.2 	research projects that are reimbursable 
5.3 	from the federal government or from other 
5.4 	sources. If the appropriation for either year 
5.5 	is insufficient, the appropriation for the other 
5.6 	year is available for it.
5.7 	(c) $600,000 the first year and $600,000 
5.8 	the second year are available for grants 
5.9 	for transportation-related activities outside 
5.10 	the metropolitan area to identify critical 
5.11 	concerns, problems, and issues. These grants 
5.12 	are available: 
5.13 	(1) to regional development commissions;
5.14 	(2) in regions where no regional development 
5.15 	commission is functioning, to joint powers 
5.16 	boards established under agreement of two or 
5.17 	more political subdivisions in the region to 
5.18 	exercise the planning functions of a regional 
5.19 	development commission; and
5.20 	(3) in regions where no regional development 
5.21 	commission or joint powers board is 
5.22 	functioning, to the department's district office 
5.23 	for that region.
5.24 	(d) $5,000,000 is for a pilot project to 
5.25 	demonstrate technologies that will allow for 
5.26 	the future replacement of the gas tax with a 
5.27 	fuel-neutral mileage charge.

5.28	Subd. 8.State road construction
 		518,599,000
		738,585,000
	
5.29 	(a) It is estimated that this appropriation will 
5.30 	be funded as follows:

5.31
5.32	Federal Highway 
Aid
	193,500,000
	350,400,000
	
5.33	Highway User Taxes
	325,099,000
	385,185,000
	
6.1 	(b) This appropriation is for the actual 
6.2 	construction, reconstruction, and 
6.3 	improvement of trunk highways, including 
6.4 	design-build contracts and consultant usage 
6.5 	to support these activities. This includes the 
6.6 	cost of actual payment to landowners for 
6.7 	lands acquired for highway rights-of-way, 
6.8 	payment to lessees, interest subsidies, and 
6.9 	relocation expenses.
6.10 	(c) The commissioner of transportation shall 
6.11 	notify the chair of the Transportation Budget 
6.12 	Division of the senate and the chair of the 
6.13 	Transportation Finance Division of the house 
6.14 	of representatives of any significant events 
6.15 	that should cause the estimates in paragraph 
6.16 	(a) to change.
6.17 	(d) $77,000,000 the second year is a onetime 
6.18 	appropriation that is shifted from the first 
6.19 	year. It does not subtract from the base 
6.20 	appropriation in the first year or add to the 
6.21 	base appropriation in the second year.
6.22 	(e) The commissioner may transfer up to 
6.23 	$15,000,000 each year to the transportation 
6.24 	revolving loan fund.
6.25 	(f) The commissioner may receive money 
6.26 	covering other shares of the cost of 
6.27 	partnership projects. These receipts are 
6.28 	appropriated to the commissioner for these 
6.29 	projects.

6.30	Subd. 9.Highway debt service
 		57,972,000
		75,254,000
	
6.31 	$54,312,000 the first year and $66,175,000 
6.32 	the second year are for transfer to the state 
6.33 	bond fund. If this appropriation is insufficient 
6.34 	to make all transfers required in the year for 
6.35 	which it is made, the commissioner of finance 
7.1 	shall notify the Committee on Finance of 
7.2 	the senate and the Committee on Ways and 
7.3 	Means of the house of representatives of 
7.4 	the amount of the deficiency and shall then 
7.5 	transfer that amount under the statutory open 
7.6 	appropriation. Any excess appropriation 
7.7 	cancels to the trunk highway fund.

7.8	Subd. 10.Electronic communications
 		5,117,000
		5,202,000

7.9	Appropriations by Fund
	
7.10	General
	9,000
	9,000
	
7.11	Trunk Highway
	5,108,000
	5,193,000
	
7.12 	The general fund appropriation is to equip 
7.13 	and operate the Roosevelt signal tower for 
7.14 	Lake of the Woods weather broadcasting.

7.15	Subd. 11.County state-aids
 		484,975,000
		566,506,000
	
7.16 	This appropriation is from the county 
7.17 	state-aid highway fund and is available until 
7.18 	spent.

7.19	Subd. 12.Municipal state-aids
 		130,521,000
		152,066,000
	
7.20 	(a) This appropriation is from the municipal 
7.21 	state-aid street fund and is available until 
7.22 	spent.
7.23 	(b) If an appropriation for either county 
7.24 	state aids or municipal state aids does not 
7.25 	exhaust the balance in the fund from which 
7.26 	it is made in the year for which it is made, 
7.27 	the commissioner of finance, upon request 
7.28 	of the commissioner of transportation, shall 
7.29 	notify the chair of the Transportation Finance 
7.30 	Division of the house of representatives 
7.31 	and the chair of the Transportation Budget 
8.1 	Division of the senate of the amount of the 
8.2 	remainder and shall then add that amount 
8.3 	to the appropriation. The amount added is 
8.4 	appropriated for the purposes of county state 
8.5 	aids or municipal state aids, as appropriate.
8.6 	(c) If the appropriation for either county state 
8.7 	aids or municipal state aids does exhaust 
8.8 	the balance in the fund from which it is 
8.9 	made in the year for which it is made, the 
8.10 	commissioner of finance shall notify the chair 
8.11 	of the Transportation Finance Division of the 
8.12 	house of representatives and the chair of the 
8.13 	Transportation Budget Division of the senate 
8.14 	of the amount by which the appropriation 
8.15 	exceeds the balance and shall then reduce 
8.16 	that amount from the appropriation.

8.17
8.18	Subd. 13.Town road sign replacement 
program
 		600,000
		0
	
8.19 	This appropriation is from the general fund 
8.20 	to the commissioner of transportation to 
8.21 	implement the town road sign replacement 
8.22 	program established in Laws 2005, First 
8.23 	Special Session chapter 6, article 3, section 
8.24 	89. For the purpose of this appropriation, 
8.25 	implementation includes the purchase and 
8.26 	installation of new signs. This appropriation 
8.27 	may be used to satisfy any local matching 
8.28 	requirement for the receipt of federal funds. 
8.29 	Designated funds not allocated by July 1, 
8.30 	2009, cancel and revert to the general fund.

8.31	Subd. 14.Flexible highway account transfers
 					
8.32 	The commissioner of finance shall transfer 
8.33 	from the flexible account in the county 
8.34 	state-aid highway fund $5,950,000 the first 
9.1 	year and $2,820,000 the second year to the 
9.2 	municipal turnback account in the municipal 
9.3 	state-aid street fund and $12,940,000 the first 
9.4 	year and $15,330,000 the second year to the 
9.5 	trunk highway fund; and the remainder in 
9.6 	each year to the county turnback account in 
9.7 	the county state-aid highway fund.

9.8	Subd. 15.Department support
 		40,559,000
		41,090,000

9.9	Appropriations by Fund
	
9.10	Trunk Highway
	40,534,000
	41,065,000
	
9.11	Airports
	25,000
	25,000

9.12	Subd. 16.Buildings
 		17,361,000
		17,403,000

9.13	Appropriations by Fund
	
9.14	General
	56,000
	56,000
	
9.15	Trunk Highway
	17,305,000
	17,347,000

9.16	Subd. 17.Transfers
 					
9.17 	(a) With the approval of the commissioner of 
9.18 	finance, the commissioner of transportation 
9.19 	may transfer unencumbered balances among 
9.20 	the appropriations from the trunk highway 
9.21 	fund and the state airports fund made in this 
9.22 	section. No transfer may be made from the 
9.23 	appropriation for state road construction. No 
9.24 	transfer may be made from the appropriations 
9.25 	for debt service to any other appropriation. 
9.26 	Transfers under this paragraph may not be 
9.27 	made between funds. Transfers between 
9.28 	programs must be reported immediately 
9.29 	to the chair of the Transportation Budget 
9.30 	Division of the senate and the chair of the 
10.1 	Transportation Finance Committee of the 
10.2 	house of representatives.
10.3 	(b) On or after July 1, 2007, the commissioner 
10.4 	of finance shall: 
10.5 	(1) transfer $4,600,000 from the trunk 
10.6 	highway revolving loan account in the 
10.7 	transportation revolving loan fund to the 
10.8 	trunk highway fund; and
10.9 	(2) transfer $1,221,000 from the general fund 
10.10 	to the trunk highway fund, to reimburse the 
10.11 	fund for transfer of trunk highway land to the 
10.12 	city of Mounds View.

10.13	Sec. 4. METROPOLITAN COUNCIL.

10.14	Subdivision 1.Total appropriation
 	$
	78,753,000
	$
	78,753,000
	
10.15 	(a) This appropriation is to the metropolitan 
10.16 	council from the general fund.
10.17 	(b) The amounts that may be spent for 
10.18 	each purpose are specified in the following 
10.19 	subdivisions.

10.20	Subd. 2.Bus transit
 		73,453,000
		73,453,000
	
10.21 	This appropriation is for bus system 
10.22 	operations.

10.23	Subd.  3.Rail operations
 		5,300,000
		5,300,000
	
10.24 	(a) This appropriation is for operations of the 
10.25 	Hiawatha light rail transit line.
10.26 	(b) This appropriation is for paying a portion 
10.27 	of the Metropolitan Council's 50 percent 
10.28 	share of operating costs for the Hiawatha 
10.29 	light rail transit line after operating revenue 
10.30 	and federal funds are used for light rail 
10.31 	transit operations. The remaining 50 percent 
10.32 	share of operating costs are to be paid by the 
11.1 	Hennepin County Regional Rail Authority, 
11.2 	using any or all of these sources:
11.3 	(1) general tax revenues of Hennepin County;
11.4 	(2) the authority's reserves; and
11.5 	(3) taxes levied under Minnesota 
11.6 	Statutes, section 398A.04, subdivision 
11.7 	8, notwithstanding any provision in that 
11.8 	subdivision that limits amounts that may be 
11.9 	levied for light rail transit purposes.

11.10	Sec. 5. PUBLIC SAFETY.

11.11	Subdivision 1.Total appropriation
 	$
	145,470,000
	$
	151,267,000

11.12	Appropriations by Fund
	
11.13		2008
	2009
	
11.14	General
	7,791,000
	7,950,000
	
11.15	Special Revenue
	47,950,000
	49,038,000
	
11.16	Trunk Highway
	80,916,000
	85,166,000
	
11.17	H.U.T.D.
	8,813,000
	9,113,000
	
11.18 	(a) This appropriation is to the commissioner 
11.19 	of public safety. The amounts that may be 
11.20 	spent for each purpose are specified in the 
11.21 	following subdivisions.
11.22 	(b) Of the amount from the general fund, 
11.23 	$133,000 the first year and $206,000 
11.24 	the second year are for compensation 
11.25 	adjustments.
11.26 	(c) Of the amount from the trunk 
11.27 	highway fund, $4,072,000 the first year 
11.28 	and $6,729,000 the second year are for 
11.29 	compensation adjustments.
11.30 	(d) Of the amount from the special revenue 
11.31 	fund, $57,000 the first year and $105,000 
11.32 	the second year are for compensation 
11.33 	adjustments.

12.1	Subd. 2.Office of communications
 		402,000
		417,000

12.2	Appropriations by Fund
	
12.3	General
	39,000
	40,000
	
12.4	Trunk Highway
	363,000
	377,000

12.5	Subd. 3.Public safety support
 		7,942,000
		8,122,000

12.6	Appropriations by Fund
	
12.7	General
	3,245,000
	3,336,000
	
12.8	Trunk Highway
	3,331,000
	3,420,000
	
12.9	H.U.T.D.
	1,366,000
	1,366,000
	
12.10 	(a) Of the amount from the general fund, 
12.11 	$110,000 the first year is a onetime 
12.12 	appropriation and $28,000 the second year 
12.13 	is a onetime appropriation for a security 
12.14 	coordinator to coordinate planning efforts for 
12.15 	the Republican National Convention.
12.16 	(b) $380,000 the first year and $380,000 
12.17 	the second year are for payment of public 
12.18 	safety officer survivor benefits under 
12.19 	Minnesota Statutes, section 299A.44. If the 
12.20 	appropriation for either year is insufficient, 
12.21 	the appropriation for the other year is 
12.22 	available for it.
12.23 	(c) $1,199,000 the first year and $1,367,000 
12.24 	the second year are to be deposited in the 
12.25 	public safety officer's benefit account. This 
12.26 	money is available for reimbursements under 
12.27 	Minnesota Statutes, section 299A.465.
12.28 	(d) $508,000 the first year and $508,000 
12.29 	the second year are for soft body armor 
12.30 	reimbursements under Minnesota Statutes, 
12.31 	section 299A.38.
12.32 	(e) $792,000 the first year and $792,000 
12.33 	the second year are appropriated from the 
13.1 	general fund for transfer by the commissioner 
13.2 	of finance to the trunk highway fund on 
13.3 	December 31, 2007, and December 31, 2008, 
13.4 	respectively, in order to reimburse the trunk 
13.5 	highway fund for expenses not related to the 
13.6 	fund. These represent amounts appropriated 
13.7 	out of the trunk highway fund for general 
13.8 	fund purposes in the administration and 
13.9 	related services program.
13.10 	(f) $610,000 the first year and $610,000 
13.11 	the second year are appropriated from 
13.12 	the highway user tax distribution fund for 
13.13 	transfer by the commissioner of finance to 
13.14 	the trunk highway fund on December 31, 
13.15 	2007, and December 31, 2008, respectively, 
13.16 	in order to reimburse the trunk highway 
13.17 	fund for expenses not related to the fund. 
13.18 	These represent amounts appropriated out 
13.19 	of the trunk highway fund for highway 
13.20 	user tax distribution fund purposes in the 
13.21 	administration and related services program.
13.22 	(g) $716,000 the first year and $716,000 
13.23 	the second year are appropriated from 
13.24 	the highway user tax distribution fund for 
13.25 	transfer by the commissioner of finance to 
13.26 	the general fund on December 31, 2007, and 
13.27 	December 31, 2008, respectively, in order to 
13.28 	reimburse the general fund for expenses not 
13.29 	related to the fund. These represent amounts 
13.30 	appropriated out of the general fund for 
13.31 	operation of the criminal justice data network 
13.32 	related to driver and motor vehicle licensing.

13.33	Subd. 4.Technical support services
 		3,870,000
		3,870,000

14.1	Appropriations by Fund
	
14.2	General
	1,507,000
	1,507,000
	
14.3	Trunk Highway
	2,344,000
	2,344,000
	
14.4	H.U.T.D.
	19,000
	19,000
	
14.5 	Of the amount from the general fund, 
14.6 	$1,416,000 the first year and $1,416,000 
14.7 	the second year are for information systems 
14.8 	security and disaster recovery.

14.9	Subd. 5.Patrolling highways
 		67,626,000
		71,522,000

14.10	Appropriations by Fund
	
14.11	General
	37,000
	37,000
	
14.12	Trunk Highway
	67,497,000
	71,393,000
	
14.13	H.U.T.D.
	92,000
	92,000
	
14.14 	(a) Of the amount from the trunk highway 
14.15 	fund, $2,060,000 the first year and 
14.16 	$3,653,000 the second year are for 40 
14.17 	additional state patrol troopers under this 
14.18 	subdivision and subdivision 6.
14.19 	(b) Of the amount from the trunk highway 
14.20 	fund, $1,335,000 the first year and 
14.21 	$1,335,000 the second year are for fuel costs 
14.22 	under this subdivision and subdivision 6.

14.23	Subd. 6.Commercial vehicle enforcement
 		6,945,000
		7,196,000

14.24	Subd. 7.Capitol security
 		2,963,000
		3,030,000
	
14.25 	This appropriation is from the general fund.

14.26	Subd. 8.Vehicle services
 		26,032,000
		26,609,000

14.27	Appropriations by Fund
	
14.28	Special Revenue
	18,696,000
	18,973,000
	
14.29	H.U.T.D.
	7,336,000
	7,636,000
	
15.1 	(a) The base appropriation from the highway 
15.2 	user tax distribution fund is $7,936,000 for 
15.3 	fiscal year 2010 and $8,236,000 for fiscal 
15.4 	year 2011.
15.5 	(b) The special revenue fund appropriation is 
15.6 	from the vehicle services operating account.
15.7 	(c) Of the amount from the special revenue 
15.8 	fund, $47,000 the first year and $45,000 the 
15.9 	second year are for a driver license and motor 
15.10 	vehicle records contract coordinator.

15.11	Subd. 9.Driver services
 		27,940,000
		28,712,000

15.12	Appropriations by Fund
	
15.13	Special Revenue
	27,939,000
	28,711,000
	
15.14	Trunk Highway
	1,000
	1,000
	
15.15 	(a) The special revenue fund appropriation is 
15.16 	from the driver services operating account.
15.17 	(b) Of the amount from the special revenue 
15.18 	fund, $25,000 the first year and $23,000 the 
15.19 	second year are for a driver license and motor 
15.20 	vehicle records contract coordinator.

15.21	Subd. 10.Traffic safety
 		435,000
		435,000
	
15.22 	(a) Of this amount, $111,000 the first 
15.23 	year and $111,000 the second year are 
15.24 	for planning and administration of grants 
15.25 	from the National Highway Traffic Safety 
15.26 	Administration.
15.27 	(b) The commissioner of public safety shall 
15.28 	spend 50 percent of the money available 
15.29 	to the state under Public Law 105-206, 
15.30 	section 164, and the remaining 50 percent 
15.31 	must be transferred to the commissioner 
15.32 	of transportation for hazard elimination 
16.1 	activities under United States Code, title 23, 
16.2 	section 152.

16.3	Subd. 11.Pipeline safety
 		1,315,000
		1,354,000
	
16.4 	(a) This appropriation is from the pipeline 
16.5 	safety account in the special revenue fund.
16.6 	(b) Of this amount, $264,000 the first year 
16.7 	and $255,000 the second year are for an 
16.8 	increase in funding to carry out the pipeline 
16.9 	safety inspection program.

16.10
16.11	Sec. 6. GENERAL CONTINGENT 
ACCOUNTS.
 	$
	375,000
	$
	375,000

16.12	Appropriations by Fund
	
16.13		2008
	2009
	
16.14	Airports
	50,000
	50,000
	
16.15	Trunk Highway
	200,000
	200,000
	
16.16	H.U.T.D.
	125,000
	125,000
	
16.17 	(a) The appropriations in this section 
16.18 	may only be spent with the approval of 
16.19 	the governor after consultation with the 
16.20 	Legislative Advisory Commission under 
16.21 	Minnesota Statutes, section 3.30.
16.22 	(b) If an appropriation in this section for 
16.23 	either year is insufficient, the appropriation 
16.24 	for the other year is available for it.

16.25	Sec. 7. TORT CLAIMS.
 	$
	600,000
	$
	600,000
	
16.26 	(a) This appropriation is to the commissioner 
16.27 	of finance.
16.28 	(b) If the appropriation for either year is 
16.29 	insufficient, the appropriation for the other 
16.30 	year is available for it.

16.31 	Sec. 8. CONTINGENT TRUNK HIGHWAY APPROPRIATION.
 16.32 	The commissioner of transportation, with the approval of the governor after 
16.33 	review by the Legislative Advisory Commission under Minnesota Statutes, section 3.30, 
17.1 	may transfer all or part of the unappropriated balance in the trunk highway fund to an 
17.2 	appropriation (1) for trunk highway design, construction, or inspection in order to take 
17.3 	advantage of an unanticipated receipt of income to the trunk highway fund or to take 
17.4 	advantage of federal advanced construction funding, (2) for trunk highway maintenance 
17.5 	in order to meet an emergency, or (3) to pay tort or environmental claims. Any transfer 
17.6 	as a result of the use of federal advanced construction funding must include an analysis 
17.7 	of the effects on the long-term trunk highway fund balance. The amount transferred is 
17.8 	appropriated for the purpose of the account to which it is transferred.

17.9 	Sec. 9. USE OF STATE ROAD CONSTRUCTION APPROPRIATIONS.
 17.10 	Any money appropriated to the commissioner of transportation for state road 
17.11 	construction for any fiscal year before fiscal year 2008 is available to the commissioner 
17.12 	during fiscal years 2008 and 2009 to the extent that the commissioner spends the money 
17.13 	on the state road construction project for which the money was originally encumbered 
17.14 	during the fiscal year for which it was appropriated. The commissioner of transportation 
17.15 	shall report to the commissioner of finance by August 1, 2007, and August 1, 2008, on a 
17.16 	form the commissioner of finance provides, on expenditures made during the previous 
17.17 	fiscal year that are authorized by this section.

17.18 	Sec. 10. EFFECTIVE DATE.
 17.19 	Except as specifically provided otherwise, this article is effective July 1, 2007.

17.20 	ARTICLE 2
17.21 	TRUNK HIGHWAY BONDS

17.22	Section 1. TRUNK HIGHWAY BOND APPROPRIATIONS.
 	
17.23 	The sums shown in the column under "APPROPRIATIONS" are appropriated from 
17.24 	the bond proceeds account in the trunk highway fund, or another named fund, to the state 
17.25 	agencies or officials indicated, to be spent for public purposes. Appropriations of bond 
17.26 	proceeds must be spent as authorized by the Minnesota Constitution, article XIV.

17.27	SUMMARY
	
17.28	Transportation
	$
	1,000,000,000
	
17.29	Bond Sale Expenses
	$
	1,000,000
	
17.30	TOTAL
	$
	1,001,000,000

17.31				APPROPRIATIONS

17.32	Sec. 2. TRANSPORTATION.
 			$
	1,000,000,000
	
18.1 	(a) $100,000,000 is appropriated on the 
18.2 	first day of fiscal years 2008 to 2017 to 
18.3 	the commissioner of transportation, for 
18.4 	the actual construction, reconstruction, 
18.5 	and improvement of trunk highways. This 
18.6 	includes the cost of actual payments to 
18.7 	landowners for lands acquired for highway 
18.8 	rights-of-way, payments to lessees, interest 
18.9 	subsidies, and relocation expenses.
18.10 	(b) The commissioner of transportation may 
18.11 	use up to $170,000,000 of this appropriation 
18.12 	for program delivery.
18.13 	(c) The commissioner shall use at least 
18.14 	$50,000,000 of this appropriation for 
18.15 	accelerating transit facility improvements on 
18.16 	or adjacent to trunk highways.

18.17	Sec. 3. BOND SALE EXPENSES.
 			$
	1,000,000
	
18.18 	This appropriation is to the commissioner 
18.19 	of finance for bond sale expenses under 
18.20 	Minnesota Statutes, sections 16A.641, 
18.21 	subdivision 8, and 167.50, subdivision 4.

18.22 	Sec. 4. BOND SALE AUTHORIZATION.
 18.23 	To provide the money appropriated in this article from the bond proceeds account 
18.24 	in the trunk highway fund, the commissioner of finance shall sell and issue bonds of 
18.25 	the state in an amount up to $1,001,000,000 in the manner, on the terms, and with the 
18.26 	effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota 
18.27 	Constitution, article XIV, section 11, at the times and in the amount requested by the 
18.28 	commissioner of transportation. The proceeds of the bonds, except accrued interest and 
18.29 	any premium received from the sale of the bonds, must be deposited in the bond proceeds 
18.30 	account in the trunk highway fund.

18.31 	Sec. 5. EFFECTIVE DATE.
 18.32 	Except as specifically provided otherwise, this article is effective July 1, 2007.

19.1 	ARTICLE 3
19.2 	HIGHWAY USER TAXES

19.3 	Section 1. Minnesota Statutes 2006, section 16A.88, is amended to read:
19.4 	16A.88 TRANSIT FUNDS ASSISTANCE FUND.
19.5 		Subdivision 1.Transit assistance fund. A transit assistance fund is established 
19.6 	within the state treasury. The fund receives money distributed under section 297B.09, 
19.7 	subdivision 1, and other money as specified by law. Money in the fund must be allocated 
19.8 	to the greater Minnesota transit account under subdivision 2 and the metropolitan area 
19.9 	transit account under subdivision 3 in the manner specified, and must be used solely for 
19.10 	transit purposes under the Minnesota Constitution, article XIV, section 13.
19.11 		Subd. 1a.Greater Minnesota transit fund account. The greater Minnesota transit 
19.12 	fund account is established within the transit assistance fund in the state treasury. Money 
19.13 	in the fund account is annually appropriated to the commissioner of transportation for 
19.14 	assistance to transit systems outside the metropolitan area under section 174.24. Beginning 
19.15 	in fiscal year 2003, The commissioner may use up to $400,000 each year $408,000 in 
19.16 	fiscal year 2008 and $416,000 in fiscal year 2009 and thereafter for administration of the 
19.17 	transit program. The commissioner shall use the fund account for transit operations as 
19.18 	provided in section 174.24 and related program administration. 
19.19 		Subd. 2.Metropolitan area transit fund account. The metropolitan area transit 
19.20 	fund account is established within the transit assistance fund in the state treasury. All 
19.21 	money in the fund account is annually appropriated to the Metropolitan Council for the 
19.22 	funding of transit systems within the metropolitan area under sections 473.384, 473.386,
19.23 	473.387, 473.388, and 473.405 to 473.449. 
19.24 		Subd. 3.Metropolitan area transit appropriation account. The metropolitan 
19.25 	area transit appropriation account is established within the general fund. Money in the 
19.26 	account is to be used for the funding of transit systems in the metropolitan area, subject to 
19.27 	legislative appropriation.

19.28 	EFFECTIVE DATE. This section is effective July 1, 2007.

19.29 	Sec. 2. Minnesota Statutes 2006, section 168.013, subdivision 1a, is amended to read:
19.30 		Subd. 1a.Passenger automobile; hearse. (a) On passenger automobiles as defined 
19.31 	in section  168.011, subdivision 7, and hearses, except as otherwise provided, the tax shall 
19.32 	be $10 plus an additional tax equal to  1.25 percent of the base value. 
20.1 	(b) Subject to the classification provisions herein, "base value" means the 
20.2 	manufacturer's suggested retail price of the vehicle including destination charge using list 
20.3 	price information published by the manufacturer or determined by the registrar if no 
20.4 	suggested retail price exists, and shall not include the cost of each accessory or item of 
20.5 	optional equipment separately added to the vehicle and the suggested retail price.
20.6 	(c) If the manufacturer's list price information contains a single vehicle identification 
20.7 	number followed by various descriptions and suggested retail prices, the registrar shall 
20.8 	select from those listings only the lowest price for determining base value.
20.9 	(d)  If unable to determine the base value because the vehicle is specially constructed, 
20.10 	or for any other reason, the registrar may establish such value upon the cost price to the 
20.11 	purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales 
20.12 	or use tax or any local sales or other local tax.
20.13 	(e) The registrar shall classify every vehicle in its proper base value class as follows:

20.14		FROM
		TO
	
20.15		$ ........0 
		$ ........199.99 
	
20.16		200
		399.99
	
20.17 	and thereafter a series of classes successively set in brackets having a spread of $200 
20.18 	consisting of such number of classes as will permit classification of all vehicles.
20.19 	(f) The base value for purposes of this section shall be the middle point between 
20.20 	the extremes of its class.
20.21 	(g) The registrar shall establish the base value, when new, of every passenger 
20.22 	automobile and hearse registered prior to the effective date of Extra Session Laws 1971, 
20.23 	chapter 31, using list price information published by the manufacturer or any nationally 
20.24 	recognized firm or association compiling such data for the automotive industry. If unable 
20.25 	to ascertain the base value of any registered vehicle in the foregoing manner, the registrar 
20.26 	may use any other available source or method. The registrar shall calculate tax using base 
20.27 	value information available to dealers and deputy registrars at the time the application for 
20.28 	registration is submitted. The tax on all previously registered vehicles shall be computed 
20.29 	upon the base value thus determined taking into account the depreciation provisions of 
20.30 	paragraph (h).
20.31 	(h) The annual additional tax computed upon the base value as provided herein, 
20.32 	during the first and second years year of vehicle life shall be computed upon 100 percent 
20.33 	of the base value; for the second year, 80 percent of such value; for the third and fourth 
20.34 	years year, 90 70 percent of such value; for the fourth year, 60 percent of such value; for 
20.35 	the fifth and sixth years year, 75 50 percent of such value; for the sixth year, 40 percent 
20.36 	of such value; for the seventh year, 60 35 percent of such value; for the eighth year, 40
21.1 	30 percent of such value; for the ninth year, 30 20 percent of such value; for the tenth year, 
21.2 	ten percent of such value; for the 11th and each succeeding year, the sum of $25.
21.3 	In  no event shall the annual additional tax be less than $25. The total tax under this 
21.4 	subdivision shall not exceed $189 for the first renewal period and shall not exceed $99 
21.5 	for subsequent renewal periods. The total tax under this subdivision on any vehicle filing 
21.6 	its initial registration in Minnesota in the second year of vehicle life shall not exceed 
21.7 	$189 and shall not exceed $99 for subsequent renewal periods. The total tax under 
21.8 	this subdivision on any vehicle filing its initial registration in Minnesota in the third or 
21.9 	subsequent year of vehicle life shall not exceed $99 and shall not exceed $99 in any 
21.10 	subsequent renewal period The annual additional tax under this paragraph must not exceed 
21.11 	the annual additional tax that was previously paid or due on that vehicle.
21.12 	(i) As used in this subdivision and section  168.017, the following terms have the 
21.13 	meanings given: "initial registration" means the 12 consecutive months calendar period 
21.14 	from the day of first registration of a vehicle in Minnesota; and "renewal periods" means 
21.15 	the 12 consecutive calendar months periods following the initial registration period. 

21.16 	Sec. 3. Minnesota Statutes 2006, section 168.017, subdivision 3, is amended to read:
21.17 		Subd. 3.Exceptions. (a) The registrar shall register all vehicles subject to 
21.18 	registration under the monthly series system for a period of 12 consecutive calendar 
21.19 	months, unless:
21.20 	(1) the application is an original rather than renewal application; or
21.21 	(2) the applicant is a licensed motor vehicle lessor under section 168.27, in which 
21.22 	case the applicant may apply for initial or renewed registration of a vehicle for a period 
21.23 	of four or more months, the month of expiration to be designated by the applicant at the 
21.24 	time of registration. However, to qualify for this exemption, the applicant must present 
21.25 	the application to the registrar at St. Paul, or at deputy registrar offices as the registrar 
21.26 	may designate. 
21.27 	(b) In any instance except that of a licensed motor vehicle lessor, the registrar shall 
21.28 	not approve registering the vehicle subject to the application for a period of less than three 
21.29 	months, except when the registrar determines that to do otherwise will help to equalize 
21.30 	the registration and renewal work load of the department.
21.31 	(c) As used in this subdivision, the following terms have the meanings given:
21.32 	(1) "initial registration" means the 12 consecutive months calendar period from the 
21.33 	day of first registration of a vehicle in Minnesota; and
21.34 	(2) "renewal periods" means the 12 consecutive calendar months periods following 
21.35 	the initial registration period.

22.1 	Sec. 4. Minnesota Statutes 2006, section 296A.07, subdivision 3, is amended to read:
22.2 		Subd. 3.Rate of tax. The gasoline excise tax is imposed at the following rates:
22.3 	(1) E85 is taxed at the rate of 14.2 17.75 cents per gallon, and 21.3 cents per gallon 
22.4 	after May 31, 2008;
22.5 	(2) M85 is taxed at the rate of 11.4 14.25 cents per gallon, and 17.1 cents per gallon 
22.6 	after May 31, 2008; and
22.7 	(3) all other gasoline is taxed at the rate of 20 25 cents per gallon, and 30 cents 
22.8 	per gallon after May 31, 2008.

22.9 	EFFECTIVE DATE. This section is effective June 1, 2007.

22.10 	Sec. 5. Minnesota Statutes 2006, section 296A.08, subdivision 2, is amended to read:
22.11 		Subd. 2.Rate of tax. The special fuel excise tax is imposed at the following rates:
22.12 	(a) Liquefied petroleum gas or propane is taxed at the rate of 1518.75 cents per 
22.13 	gallon, and 22.5 cents per gallon after May 31, 2008.
22.14 	(b) Liquefied natural gas is taxed at the rate of 1215 cents per gallon, and 18 cents 
22.15 	per gallon after May 31, 2008.
22.16 	(c) Compressed natural gas is taxed at the rate of $1.739$2.174 per thousand 
22.17 	cubic feet;, or 2025 cents per gasoline equivalent, and $2.609 per thousand cubic feet, 
22.18 	or 30 cents per gasoline equivalent after May 31, 2008. For purposes of this paragraph, 
22.19 	"gasoline equivalent," as defined by the National Conference on Weights and Measures, 
22.20 	which is 5.66 pounds of natural gas. 
22.21 	(d) All other special fuel is taxed at the same rate as the gasoline excise tax as 
22.22 	specified in section 296A.07, subdivision 2. The tax is payable in the form and manner 
22.23 	prescribed by the commissioner. 

22.24 	EFFECTIVE DATE. This section is effective June 1, 2007.

22.25 	Sec. 6. Minnesota Statutes 2006, section 297B.09, subdivision 1, is amended to read:
22.26 		Subdivision 1.Deposit of revenues. (a) Money collected and received under this 
22.27 	chapter must be deposited as provided in this subdivision.
22.28 	(b) From July 1, 2002, to June 30, 2003, 32 percent of the money collected and 
22.29 	received must be deposited in the highway user tax distribution fund, 20.5 percent must be 
22.30 	deposited in the metropolitan area transit fund under section 16A.88, and 1.25 percent 
22.31 	must be deposited in the greater Minnesota transit fund under section 16A.88. The 
22.32 	remaining money must be deposited in the general fund.
23.1 	(c) From July 1, 2003, to June 30, 2007, 30 percent of the money collected and 
23.2 	received must be deposited in the highway user tax distribution fund, 21.5 percent must be 
23.3 	deposited in the metropolitan area transit fund under section 16A.88, 1.43 percent must be 
23.4 	deposited in the greater Minnesota transit fund under section 16A.88, 0.65 percent must 
23.5 	be deposited in the county state-aid highway fund, and 0.17 percent must be deposited 
23.6 	in the municipal state-aid street fund. The remaining money must be deposited in the 
23.7 	general fund. 
23.8 	(d) On and after July 1, 2007, 32 percent of the money collected and received must 
23.9 	be deposited in the highway user tax distribution fund, 20.5 percent must be deposited 
23.10 	in the metropolitan area transit fund under section 16A.88, and 1.25 percent must be 
23.11 	deposited in the greater Minnesota transit fund under section 16A.88. The remaining 
23.12 	money must be deposited in the general fund. 
23.13 	(b) From July 1, 2007, through June 30, 2008, 38.25 percent must be deposited in 
23.14 	the highway user tax distribution fund, 23 percent must be deposited in the metropolitan 
23.15 	area transit account, and 2.5 percent must be deposited in the greater Minnesota transit 
23.16 	account. The remaining money must be deposited in the general fund.
23.17 	(c) From July 1, 2008, through June 30, 2009, 44.25 percent must be deposited in the 
23.18 	highway user tax distribution fund, 26.75 percent must be deposited in the metropolitan 
23.19 	area transit account, and 2.75 percent must be deposited in the greater Minnesota transit 
23.20 	account. The remaining money must be deposited in the general fund.
23.21 	(d) From July 1, 2009, through June 30, 2010, 50.25 percent must be deposited in 
23.22 	the highway user tax distribution fund, 30.5 percent must be deposited in the metropolitan 
23.23 	area transit account, and three percent must be deposited in the greater Minnesota transit 
23.24 	account. The remaining money must be deposited in the general fund.
23.25 	(e) From July 1, 2010, through June 30, 2011, 56.25 percent must be deposited in the 
23.26 	highway user tax distribution fund, 34.25 percent must be deposited in the metropolitan 
23.27 	area transit account, and 3.25 percent must be deposited in the greater Minnesota transit 
23.28 	account. The remaining money must be deposited in the general fund.
23.29 	(f) On and after July 1, 2011, 60 percent must be deposited in the highway user tax 
23.30 	distribution fund, 36.5 percent must be deposited in the metropolitan area transit account, 
23.31 	and 3.5 percent must be deposited in the greater Minnesota transit account.

23.32 	EFFECTIVE DATE. This section is effective July 1, 2007.

23.33 	Sec. 7. Minnesota Statutes 2006, section 473.446, subdivision 1, is amended to read:
23.34 		Subdivision 1.Metropolitan area transit tax. (a) For the purposes of sections 
23.35 	473.405 to 473.449 and the metropolitan transit system, except as otherwise provided in 
24.1 	this subdivision, the council shall levy each year upon all taxable property within the 
24.2 	metropolitan area, defined in section 473.121, subdivision 2, a transit tax consisting of: 
24.3 	(1) an amount necessary to provide full and timely payment of certificates of 
24.4 	indebtedness, bonds, including refunding bonds or other obligations issued or to be issued 
24.5 	under section 473.39 by the council for purposes of acquisition and betterment of property 
24.6 	and other improvements of a capital nature and to which the council has specifically 
24.7 	pledged tax levies under this clause; and 
24.8 	(2) an additional amount necessary to provide full and timely payment of certificates 
24.9 	of indebtedness issued by the council, after consultation with the commissioner of finance, 
24.10 	if revenues to the metropolitan area transit fund account in the fiscal year in which the 
24.11 	indebtedness is issued increase over those revenues in the previous fiscal year by a 
24.12 	percentage less than the percentage increase for the same period in the revised Consumer 
24.13 	Price Index for all urban consumers for the St. Paul-Minneapolis metropolitan area 
24.14 	prepared by the United States Department of Labor.
24.15 	(b) Indebtedness to which property taxes have been pledged under paragraph (a), 
24.16 	clause (2), that is incurred in any fiscal year may not exceed the amount necessary to 
24.17 	make up the difference between (1) the amount that the council received or expects to 
24.18 	receive in that fiscal year from the metropolitan area transit fund account and (2) the 
24.19 	amount the council received from that fund in the previous fiscal year multiplied by the 
24.20 	percentage increase for the same period in the revised Consumer Price Index for all urban 
24.21 	consumers for the St. Paul-Minneapolis metropolitan area prepared by the United States 
24.22 	Department of Labor.

24.23 	Sec. 8. EFFECTIVE DATE.
 24.24 	Except as specifically provided otherwise, this article is effective July 1, 2007.

24.25 	ARTICLE 4
24.26 	COUNTY STATE-AID HIGHWAY FUND DISTRIBUTION

24.27 	Section 1. Minnesota Statutes 2006, section 162.06, is amended to read:
24.28 	162.06 ACCRUALS TO COUNTY STATE-AID HIGHWAY FUND; 
24.29 	ACCOUNTS.
24.30 		Subdivision 1.Estimate. (a) By December 15 of each year the commissioner shall 
24.31 	estimate the amount of money that will be available to the county state-aid highway fund 
24.32 	during that fiscal year. The amount available must be based on actual receipts from July 1 
24.33 	through November 30, the unallocated fund balance, and the projected receipts for the 
24.34 	remainder of the fiscal year. The total amount available, except for deductions as provided 
25.1 	herein, shall be apportioned by the commissioner to the counties as hereinafter provided
25.2 	in section 162.07.
25.3 	(b) For purposes of this section, the apportionment sum is the amount calculated 
25.4 	in section 162.07, subdivision 1.
25.5 		Subd. 2.Administrative costs of department. Two percent must be deducted 
25.6 	from the total amount available in the county state-aid highway fund apportionment sum, 
25.7 	set aside in a separate account, and used for administrative costs incurred by the state 
25.8 	Transportation Department in carrying out the provisions relating to the county state-aid 
25.9 	highway system.
25.10 		Subd. 3.Disaster account. (a) After deducting administrative costs as provided in 
25.11 	subdivision 2, the commissioner shall set aside each year a sum of money equal to one 
25.12 	percent of the remaining money in the county state-aid highway fund apportionment sum
25.13 	to provide for a disaster account; provided that the total amount of money in the disaster 
25.14 	account must never exceed two percent of the total sums to be apportioned to the counties. 
25.15 	This sum The money must be used to provide aid to any county encountering disasters 
25.16 	or unforeseen events affecting its county state-aid highway system, and resulting in an 
25.17 	undue and burdensome financial hardship.
25.18 	(b) Any county desiring aid by reason of disaster or unforeseen event shall request 
25.19 	the aid in the form required by the commissioner. Upon receipt of the request, the 
25.20 	commissioner shall appoint a board consisting of two representatives of the counties, who 
25.21 	must be either a county engineer or member of a county board, from counties other than the 
25.22 	requesting county, and a representative of the commissioner. The board shall investigate 
25.23 	the matter and report its findings and recommendations in writing to the commissioner.
25.24 	(c) Final determination of the amount of aid, if any, to be paid to the county from the 
25.25 	disaster account must be made by the commissioner. Upon determining to aid a requesting 
25.26 	county, the commissioner shall certify to the commissioner of finance the amount of the 
25.27 	aid, and the commissioner of finance shall then issue a warrant in that amount payable 
25.28 	to the county treasurer of the county. Money so paid must be expended on the county 
25.29 	state-aid highway system in accordance with the rules of the commissioner.
25.30 		Subd. 4.Research account. (a) Each year the screening board, provided for in 
25.31 	section 162.07, subdivision 5, may recommend to the commissioner a sum of money that 
25.32 	the commissioner shall set aside from the county state-aid highway fund apportionment 
25.33 	sum and credit to a research account. The amount so recommended and set aside shall not 
25.34 	exceed one-half of one percent of the preceding year's apportionment sum. 
25.35 	(b) Any money so set aside shall be used by the commissioner for the purpose of:
26.1 	(1) conducting research for improving the design, construction, maintenance and 
26.2 	environmental compatibility of state-aid highways and appurtenances;
26.3 	(2) constructing research elements and reconstructing or replacing research elements 
26.4 	that fail; and
26.5 	(3) conducting programs for implementing and monitoring research results.
26.6 	(c) Any balance remaining in the research account at the end of each year from 
26.7 	the sum set aside for the year immediately previous, shall be transferred to the county 
26.8 	state-aid highway fund.
26.9 		Subd. 5.State park road account. After deducting for administrative costs and 
26.10 	for the disaster account and research account as heretofore provided from the remainder 
26.11 	of the total sum provided for in subdivision 1, there shall be deducted provided in this 
26.12 	section, the commissioner shall deduct a sum equal to the three-quarters of one percent of 
26.13 	the remainder apportionment sum. The sum so deducted shall be set aside in a separate 
26.14 	account and shall be used for (1) the establishment, location, relocation, construction, 
26.15 	reconstruction, and improvement of those roads included in the county state-aid highway 
26.16 	system under Minnesota Statutes 1961, section 162.02, subdivision 6, which border and 
26.17 	provide substantial access to an outdoor recreation unit as defined in section 86A.04 or 
26.18 	which provide access to the headquarters of or the principal parking lot located within 
26.19 	such a unit, and (2) the reconstruction, improvement, repair, and maintenance of county 
26.20 	roads, city streets, and town roads that provide access to public lakes, rivers, state parks, 
26.21 	and state campgrounds. Roads described in clause (2) are not required to meet county 
26.22 	state-aid highway standards. At the request of the commissioner of natural resources the 
26.23 	counties wherein such roads are located shall do such work as requested in the same 
26.24 	manner as on any county state-aid highway and shall be reimbursed for such construction, 
26.25 	reconstruction, or improvements from the amount set aside by this subdivision. Before 
26.26 	requesting a county to do work on a county state-aid highway as provided in this 
26.27 	subdivision, the commissioner of natural resources must obtain approval for the project 
26.28 	from the County State-Aid Screening Board. The screening board, before giving its 
26.29 	approval, must obtain a written comment on the project from the county engineer of the 
26.30 	county requested to undertake the project. Before requesting a county to do work on a 
26.31 	county road, city street, or a town road that provides access to a public lake, a river, a state 
26.32 	park, or a state campground, the commissioner of natural resources shall obtain a written 
26.33 	comment on the project from the county engineer of the county requested to undertake 
26.34 	the project. Any sums paid to counties or cities in accordance with this subdivision shall 
26.35 	reduce the money needs of said counties or cities in the amounts necessary to equalize 
26.36 	their status with those counties or cities not receiving such payments. Any balance of the 
27.1 	amount so set aside, at the end of each year shall be transferred to the county state-aid 
27.2 	highway fund. 
27.3 		Subd. 6.County state-aid highway revolving loan account. A county state-aid 
27.4 	highway revolving loan account is created in the transportation revolving loan fund. The 
27.5 	commissioner may transfer to the account the amount allocated under section 162.065. 
27.6 	Money in the account may be used to make loans. Funds in the county state-aid highway 
27.7 	revolving loan account may be used only for aid in the construction, improvement, and 
27.8 	maintenance of county state-aid highways. Funds in the account may not be used for any 
27.9 	toll facilities project or congestion-pricing project. Repayments and interest from loans 
27.10 	from the county state-aid highway revolving loan account must be credited to that account. 
27.11 	Money in the account is annually appropriated to the commissioner and does not lapse. 
27.12 	Interest earned from investment of money in this account must be deposited in the county 
27.13 	state-aid highway revolving loan account. 

27.14 	Sec. 2. Minnesota Statutes 2006, section 162.07, subdivision 1, is amended to read:
27.15 		Subdivision 1.Formula Apportionment sum. After deducting for administrative 
27.16 	costs and for the disaster account and research account and state park roads as heretofore 
27.17 	provided, the remainder of the total sum provided for in section 162.06, subdivision 1, 
27.18 	shall be identified as the apportionment sum and shall be apportioned by the commissioner 
27.19 	to the several counties on the basis of the needs of the counties as determined in 
27.20 	accordance with the following formula:
27.21 	(a) The commissioner shall reduce the apportionment sum by the deductions 
27.22 	provided for in section 162.06 for administrative costs, disaster account, research account, 
27.23 	and state park road account. The commissioner shall apportion the remainder to the several 
27.24 	counties on the basis of the needs of the counties, as provided in paragraphs (b) to (e).
27.25 	(a) (b) An amount equal to ten percent of the apportionment sum shall be apportioned 
27.26 	equally among the 87 counties.
27.27 	(b) (c) An amount equal to ten percent of the apportionment sum shall be 
27.28 	apportioned among the several counties so that each county shall receive of such amount 
27.29 	the percentage that its motor vehicle registration for the calendar year preceding the 
27.30 	one last past, determined by residence of registrants, bears to the total statewide motor 
27.31 	vehicle registration.
27.32 	(c) (d) An amount equal to 30 percent of the apportionment sum shall be apportioned 
27.33 	among the several counties so that each county shall receive of such amount the percentage 
27.34 	that its total lane-miles of approved county state-aid highways bears to the total lane-miles 
27.35 	of approved statewide county state-aid highways. In 1997 and subsequent years no county 
28.1 	may receive, as a result of an apportionment under this clause based on lane-miles rather 
28.2 	than miles of approved county state-aid highways, an apportionment that is less than its 
28.3 	apportionment in 1996.
28.4 	(d) (e) An amount equal to 50 percent of the apportionment sum shall be apportioned 
28.5 	among the several counties so that each county shall receive of such amount the percentage 
28.6 	that its money needs bears to the sum of the money needs of all of the individual counties; 
28.7 	provided, that the percentage of such amount that each county is to receive shall be 
28.8 	adjusted so that each county shall receive in 1958 a total apportionment at least ten 
28.9 	percent greater than its total 1956 apportionments from the state road and bridge fund; 
28.10 	and provided further that those counties whose money needs are thus adjusted shall 
28.11 	never receive a percentage of the apportionment sum less than the percentage that such 
28.12 	county received in 1958.

28.13 	Sec. 3. Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision 
28.14 	to read:
28.15 		Subd. 1a.Apportionment sum and excess sum. (a) For purposes of this 
28.16 	subdivision, "amount available" means the amount identified in section 162.06, 
28.17 	subdivision 1.
28.18 	(b) The apportionment sum is calculated by subtracting the excess sum, as calculated 
28.19 	in paragraph (c), from the amount available.
28.20 	(c) The excess sum is calculated as the sum of revenue within the amount available:
28.21 	(1) attributed to that portion of the gasoline excise tax rate in excess of 20 cents per 
28.22 	gallon, and to that portion of the excise tax rate for E85, M85, and special fuels in excess 
28.23 	of the energy equivalent of a gasoline tax rate of 20 cents per gallon;
28.24 	(2) attributed to a change in the passenger vehicle registration tax under section 
28.25 	168.013, imposed on or after July 1, 2007, that exceeds the amount collected in fiscal year 
28.26 	2007 multiplied by the annual average United States Consumer Price Index for all urban 
28.27 	consumers, United States city average, as determined by the United States Department of 
28.28 	Labor for the previous year, divided by the annual average for calendar year 2006; and
28.29 	(3) attributed to that portion of the motor vehicle sales tax revenue in excess of the 
28.30 	percentage allocated in fiscal year 2007.

28.31 	Sec. 4. Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision 
28.32 	to read:
29.1 		Subd. 1c.Excess sum. The commissioner shall apportion the excess sum to the 
29.2 	several counties on the basis of the needs of the counties, as provided in paragraphs (a) 
29.3 	and (b).
29.4 	(a) An amount equal to 40 percent must be apportioned among the several counties 
29.5 	so that each county receives of that amount the percentage that its motor vehicle 
29.6 	registration for the calendar year preceding the one last past, determined by residence of 
29.7 	registrants, bears to the total statewide motor vehicle registration.
29.8 	(b) An amount equal to 60 percent must be apportioned among the several counties 
29.9 	so that each county receives of that amount the percentage that its money needs bears to 
29.10 	the sum of the money needs of all of the individual counties.

29.11 	Sec. 5. INSTRUCTION TO REVISOR.
 29.12 	The revisor of statutes shall renumber Minnesota Statutes 2006, section 162.07, 
29.13 	subdivision 1, as subdivision 1b.

29.14 	Sec. 6. EFFECTIVE DATE.
 29.15 	Except as specifically provided otherwise, this article is effective July 1, 2007.

29.16 	ARTICLE 5
29.17 	LOCAL OPTION TAXES

29.18 	Section 1. Minnesota Statutes 2006, section 161.04, is amended by adding a 
29.19 	subdivision to read:
29.20 		Subd. 5.Highway spending in metropolitan transportation area. In any year 
29.21 	during which taxes authorized in section 297A.992, subdivision 2, are imposed, and 
29.22 	exclusive of the expenditure of these revenues, the percentage of total trunk highway fund 
29.23 	expenditures attributable to projects in the metropolitan transportation area, within the 
29.24 	meaning of section 297A.992, subdivision 1, may not decrease more than two percentage 
29.25 	points from the average of the previous five years of trunk highway fund metropolitan 
29.26 	transportation area expenditures.

29.27 	Sec. 2. Minnesota Statutes 2006, section 163.051, is amended to read:
29.28 	163.051 METROPOLITAN COUNTY WHEELAGE TAX.
29.29 		Subdivision 1.Tax authorized. The board of commissioners of each metropolitan
29.30 	county is authorized to levy by resolution a wheelage tax of $5 for the year 1972 and each 
29.31 	subsequent year thereafter by resolution $20 each year on each motor vehicle, except 
29.32 	motorcycles as defined in section 169.01, subdivision 4, which is kept in such county 
30.1 	when not in operation and which isthat is domiciled in the county and subject to annual 
30.2 	registration and taxation under chapter 168. A wheelage tax does not apply to motorcycles 
30.3 	as defined in section 169.01, subdivision 4, and motor vehicles registered under section 
30.4 	168.013, subdivision 1e, with a total gross weight of 26,001 pounds or greater. The board 
30.5 	may provide by resolution for collection of the wheelage tax by county officials or it may 
30.6 	request that the tax be collected by the state registrar of motor vehicles, and the state
30.7 	registrar of motor vehicles shall collect such the tax on behalf of the county if requested, 
30.8 	as provided in subdivision 2 provided in the board resolution. 
30.9 		Subd. 2.Collection by registrar of motor vehicles. The wheelage tax levied by 
30.10 	any metropolitan county, if made collectible by the state registrar of motor vehicles, shall 
30.11 	be certified by the county auditor to the registrar not later than August 1 in the year before 
30.12 	the a calendar year or years for which the tax is levied, and the registrar shall collect such
30.13 	the tax with the motor vehicle taxes registration tax on the each  affected vehicles vehicle 
30.14 	for such that  year or years. EveryAn owner and every operator of such a motor vehicle 
30.15 	subject to the wheelage tax shall furnish to the registrar all information requested by the 
30.16 	registrar relating to the wheelage tax. No state motor A vehicle registration tax on any 
30.17 	such motor vehicle for any such year shall may not  be received or deemed paid unless the 
30.18 	applicable wheelage tax is paid therewith. The proceeds of the wheelage tax levied by any 
30.19 	metropolitan county, less any amount retained by the registrar to pay costs of collection of 
30.20 	the wheelage tax, shall be paid to the commissioner of finance and deposited in the state 
30.21 	treasury to the credit of the county wheelage tax fund of each metropolitan county.
30.22 		Subd. 2a.Tax proceeds deposited; costs of collection; appropriation.
 30.23 	Notwithstanding the provisions of any other law, the state registrar of motor vehicles shall 
30.24 	deposit the proceeds of the wheelage tax imposed by subdivision 2, to the credit of the 
30.25 	county wheelage tax road and bridge fund of each metropolitan county that levies the 
30.26 	wheelage tax. The amount necessary to pay the costs of collection of said collecting the 
30.27 	tax is appropriated to the registrar from the county wheelage tax road and bridge fund of 
30.28 	each metropolitan county to the state registrar of motor vehicles that levies the tax.
30.29 		Subd. 3.Distribution to metropolitan county; appropriation. On or before April 
30.30 	1 in 1972 and each subsequent year, the commissioner of finance shall issue a warrant in 
30.31 	favor of the treasurer of each metropolitan county for which the registrar has collected a 
30.32 	wheelage tax in the amount of such tax then on hand in the county wheelage tax fund. 
30.33 	There is hereby appropriated from the county wheelage tax fund each year, to each 
30.34 	metropolitan county entitled to payments authorized by this section, sufficient moneys 
30.35 	to make such payments.
31.1 		Subd. 4.Use of tax. The treasurer of each metropolitan county receiving moneys 
31.2 	under subdivision 3 shall deposit such moneys in the county road and bridge fund. The 
31.3 	moneys shall be used for purposes authorized by law which are highway purposes within 
31.4 	the meaning of the Minnesota Constitution, article 14.
31.5 		Subd. 5.Effect on road and bridge levy. The county auditor of each metropolitan 
31.6 	county shall reduce the amount of the property taxes levied pursuant to law in 1973 for 
31.7 	collection in 1974, by the board of commissioners of such county for the county road 
31.8 	and bridge fund, by the following amount: Anoka County, $341,750; Carver County, 
31.9 	$86,725; Dakota County, $386,165; Hennepin County, $2,728,425; Ramsey County, 
31.10 	$1,276,815; Scott County, $104,805; Washington County, $227,220, and shall spread only 
31.11 	the balance thereof on the tax rolls for collection in 1972. The county auditor shall also 
31.12 	reduce the amount of such taxes levied pursuant to law in 1972 and any subsequent year, 
31.13 	for collection in the respective ensuing years, by the amount of wheelage taxes received 
31.14 	by the county in the 12 months immediately preceding such levy.
31.15 		Subd. 6.Metropolitan county defined. "Metropolitan county" means any of the 
31.16 	counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
31.17 		Subd. 7.Offenses; penalties; application of other laws. Any owner or operator 
31.18 	of a motor vehicle who shall willfully give any gives false information relative to the 
31.19 	wheelage tax herein authorized to the registrar of motor vehicles or any metropolitan
31.20 	county, or who shall willfully fail fails or refuse refuses  to furnish any such information, 
31.21 	shall be is guilty of a misdemeanor. Except as otherwise herein provided in this section,
31.22 	the collection and payment of a wheelage tax and all related matters relating thereto shall 
31.23 	beare subject to all provisions of law laws relating to collection and payment of motor 
31.24 	vehicle taxes so far as applicable.

31.25 	Sec. 3. Minnesota Statutes 2006, section 168.011, subdivision 6, is amended to read:
31.26 		Subd. 6.Tax. "Tax" means the annual registration tax imposed on vehicles in lieu 
31.27 	of all other taxes, except wheelage taxes which may be imposed by any city or county, 
31.28 	and gross earnings taxes paid by companies. The annual tax is both a property tax and a 
31.29 	highway use tax and shall be on the basis of the calendar year.

31.30 	Sec. 4. Minnesota Statutes 2006, section 168.013, subdivision 1, is amended to read:
31.31 		Subdivision 1.Imposition. Motor vehicles, except as set forth in section  168.012, 
31.32 	using the public streets or highways in the state, and park trailers taxed under subdivision 
31.33 	1j, shall be taxed in lieu of all other taxes thereon, except wheelage taxes, so-called, which 
31.34 	may be imposed by any city or county as provided by law, and except gross earnings 
32.1 	taxes paid by companies subject or made subject thereto, and shall be privileged to 
32.2 	use the public streets and highways, on the basis and at the rate for each calendar year 
32.3 	as hereinafter provided. 

32.4 	Sec. 5. Minnesota Statutes 2006, section 297A.94, is amended to read:
32.5 	297A.94 DEPOSIT OF REVENUES.
32.6 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
32.7 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
32.8 	treasury and credit them to the general fund.
32.9 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
32.10 	account in the special revenue fund if:
32.11 	(1) the taxes are derived from sales and use of property and services purchased for 
32.12 	the construction and operation of an agricultural resource project; and
32.13 	(2) the purchase was made on or after the date on which a conditional commitment 
32.14 	was made for a loan guaranty for the project under section 41A.04, subdivision 3. 
32.15 	The commissioner of finance shall certify to the commissioner the date on which the 
32.16 	project received the conditional commitment. The amount deposited in the loan guaranty 
32.17 	account must be reduced by any refunds and by the costs incurred by the Department of 
32.18 	Revenue to administer and enforce the assessment and collection of the taxes.
32.19 	(c) The commissioner shall deposit the revenues, including interest and penalties, 
32.20 	derived from the taxes imposed on sales and purchases included in section 297A.61, 
32.21 	subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them 
32.22 	as follows: 
32.23 	(1) first to the general obligation special tax bond debt service account in each fiscal 
32.24 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and 
32.25 	(2) after the requirements of clause (1) have been met, the balance to the general 
32.26 	fund.
32.27 	(d) The commissioner shall deposit the revenues, including interest and penalties, 
32.28 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
32.29 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
32.30 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
32.31 	subdivision 5, for the previous calendar year. 
32.32 	(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and 
32.33 	for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and 
32.34 	penalties, transmitted to the commissioner under section 297A.65, must be deposited by 
32.35 	the commissioner in the state treasury as follows: 
33.1 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account 
33.2 	in the game and fish fund, and may be spent only on activities that improve, enhance, or 
33.3 	protect fish and wildlife resources, including conservation, restoration, and enhancement 
33.4 	of land, water, and other natural resources of the state;
33.5 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
33.6 	may be spent only for state parks and trails;
33.7 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
33.8 	may be spent only on metropolitan park and trail grants;
33.9 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
33.10 	may be spent only on local trail grants; and
33.11 	(5) two percent of the receipts must be deposited in the natural resources fund, 
33.12 	and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and 
33.13 	Conservatory, and the Duluth Zoo.
33.14 	(f) The revenue dedicated under paragraph (e) may not be used as a substitute 
33.15 	for traditional sources of funding for the purposes specified, but the dedicated revenue 
33.16 	shall supplement traditional sources of funding for those purposes. Land acquired with 
33.17 	money deposited in the game and fish fund under paragraph (e) must be open to public 
33.18 	hunting and fishing during the open season, except that in aquatic management areas or 
33.19 	on lands where angling easements have been acquired, fishing may be prohibited during 
33.20 	certain times of the year and hunting may be prohibited. At least 87 percent of the money 
33.21 	deposited in the game and fish fund for improvement, enhancement, or protection of fish 
33.22 	and wildlife resources under paragraph (e) must be allocated for field operations.
33.23 	(g) The revenues, including interest and penalties, collected under sections 297A.992 
33.24 	and 297A.993 must be deposited by the commissioner as provided for in those sections.

33.25 	Sec. 6. [297A.992] METROPOLITAN TRANSPORTATION SALES AND USE 
33.26 	TAX.
33.27 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
33.28 	the meanings given them:
33.29 	(1) "metropolitan transportation area" means the counties of Anoka, Dakota, 
33.30 	Hennepin, Ramsey, and Washington, and may include the counties of Carver and Scott if 
33.31 	declared by resolution of its county board to be a part of the metropolitan transportation 
33.32 	area; and
33.33 	(2) "joint powers board" means the Metropolitan Transportation Area Joint Powers 
33.34 	Board.
34.1 		Subd. 2.Authorization; rates. (a) Notwithstanding section 297A.99, subdivisions 
34.2 	1, 2, 3, 5, and 13, or 477A.016, or any other law, the boards of the counties acting under a 
34.3 	joint powers agreement as specified in this section may impose (1) a transportation sales 
34.4 	and use tax within the metropolitan transportation area, at a rate of one-half of one percent 
34.5 	on retail sales and uses taxable under this chapter, and (2) an excise tax of $20 per motor 
34.6 	vehicle purchased or acquired from any person engaged in the business of selling motor 
34.7 	vehicles at retail, occurring within the jurisdiction of the taxing authority. The taxes 
34.8 	authorized are to fund transportation improvements as specified in this section.
34.9 	(b) The tax imposed under this section is not included in determining if the total tax 
34.10 	on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986, 
34.11 	chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article 
34.12 	12, section 87, or in determining a tax that may be imposed under any other limitations.
34.13 		Subd. 3.Joint powers board. (a) Before imposing the taxes authorized under 
34.14 	subdivision 2, all of the counties in the metropolitan transportation area shall enter into 
34.15 	a joint powers agreement to create the joint powers board. A joint powers agreement 
34.16 	under this section:
34.17 	(1) must provide a process and timeline that allows an eligible county, by resolution 
34.18 	of its county board, to join the joint powers board and impose the taxes authorized under 
34.19 	subdivision 2;
34.20 	(2) may provide for withdrawal of participating counties before final termination of 
34.21 	the agreement; and
34.22 	(3) may provide for a weighted-voting system for joint powers board decisions.
34.23 	(b) The joint powers board must consist of one representative of each county 
34.24 	appointed by its county board. The joint powers board has the powers and duties provided 
34.25 	in this section and in section 471.59.
34.26 	(c) The joint powers board shall maximize the availability and use of federal funds in 
34.27 	projects funded under this section. The joint powers board may not utilize proceeds of the 
34.28 	taxes imposed, or proceeds of bonds or other obligations issued, to reimburse counties for 
34.29 	ordinary administrative expenses incurred in carrying out the provisions of this section.
34.30 	(d) After the deductions allowed in section 297A.99, subdivision 11, the 
34.31 	commissioner of revenue shall remit the proceeds of the taxes imposed under this section 
34.32 	to the joint powers board.
34.33 		Subd. 4.Grants for transportation projects. (a) The joint powers board 
34.34 	shall by resolution, and in consultation with one elected city official from each county 
34.35 	in the metropolitan transportation area appointed by the Association of Metropolitan 
35.1 	Municipalities, establish a grant application process and define objective criteria for the 
35.2 	award of grants.
35.3 	(b) Grant applications must be submitted in a form prescribed by the joint powers 
35.4 	board. An applicant must provide, in addition to all other information required by the joint 
35.5 	powers board, the estimated cost of the project, the amount of the grant sought, possible 
35.6 	sources of funding in addition to the grant sought, and identification of any federal funds 
35.7 	that will be utilized if the grant is awarded.
35.8 	(c) Grants must be funded by the proceeds of the taxes imposed under this section, or 
35.9 	bonds or other obligations issued by the joint powers board. Grant awards must be made 
35.10 	annually by July 1 and funded in the next calendar year.
35.11 		Subd. 5.Use of grant awards. The joint powers board may only award grants to 
35.12 	the state and political subdivisions for the following purposes:
35.13 	(1) construction or reconstruction of trunk highways or local roads of regional 
35.14 	significance;
35.15 	(2) capital improvements to transit ways;
35.16 	(3) feasibility studies, planning, alternatives analyses, environmental studies, 
35.17 	engineering, and construction of transit ways; and
35.18 	(4) operating assistance for transit.
35.19 		Subd. 6.Administration, collection, enforcement. The administration, collection, 
35.20 	and enforcement provisions in section 297A.99, subdivisions 4 and 6 to 12, apply to all 
35.21 	taxes imposed under this section.
35.22 		Subd. 7.Report. In each year in which the taxes authorized in this section are 
35.23 	imposed, the joint powers board shall report by February 1 to the house of representatives 
35.24 	and senate committees having jurisdiction over transportation policy and finance 
35.25 	concerning the revenues received and grants awarded.

35.26 	Sec. 7. [297A.993] GREATER MINNESOTA TRANSPORTATION SALES AND 
35.27 	USE TAX.
35.28 		Subdivision 1.Authorization; rates. Notwithstanding section 297A.99, 
35.29 	subdivisions 1, 2, 3, 5, and 13, or 477A.016, or any other law, the board of a county outside 
35.30 	the metropolitan transportation area, as defined under section 297A.992, subdivision 1, or 
35.31 	more than one county outside the metropolitan transportation area acting under a joint 
35.32 	powers agreement, may impose (1) a transportation sales tax at a rate of one-half of one 
35.33 	percent on retail sales and uses taxable under this chapter, and (2) an excise tax of $20 per 
35.34 	motor vehicle purchased or acquired from any person engaged in the business of selling 
35.35 	motor vehicles at retail, occurring within the jurisdiction of the taxing authority. The taxes 
36.1 	imposed under this section are subject to approval by a majority of the voters of the county 
36.2 	or counties at a general election who vote on the question to impose the taxes.
36.3 		Subd. 2.Allocation; termination. The proceeds of the taxes must be dedicated 
36.4 	exclusively to payment of the cost of a specific transportation project or improvement. 
36.5 	The transportation project or improvement must be designated by the board of the county, 
36.6 	or more than one county acting under a joint powers agreement. The taxes must terminate 
36.7 	after the project or improvement has been completed.
36.8 		Subd. 3.Administration, collection, enforcement. The administration, collection, 
36.9 	and enforcement provisions in section 297A.99, subdivisions 4 and 6 to 12, apply to all 
36.10 	taxes imposed under this section.

36.11 	Sec. 8. EFFECTIVE DATE.
 36.12 	This article is effective July 1, 2007, except that sections 6 and 7 are effective for 
36.13 	sales made on and after January 1, 2008.

36.14 	ARTICLE 6
36.15 	TRANSPORTATION FINANCE

36.16 	Section 1. Minnesota Statutes 2006, section 161.04, subdivision 3, is amended to read:
36.17 		Subd. 3.Trunk highway revolving loan account. A trunk highway revolving loan 
36.18 	account is created in the transportation revolving loan fund under section 446A.085. 
36.19 	The commissioner may transfer money from the trunk highway fund to the trunk 
36.20 	highway revolving loan account and from the trunk highway revolving loan account to 
36.21 	the trunk highway fund. Money in the account may be used to make loans. Funds in 
36.22 	the trunk highway revolving loan account may not be used for any toll facilities project 
36.23 	or congestion-pricing project and may be used only for trunk highway purposes and 
36.24 	repayments and interest from loans of those funds must be credited to the trunk highway 
36.25 	revolving loan account in the transportation revolving loan fund. Money in the trunk 
36.26 	highway revolving loan account is annually appropriated to the commissioner and does 
36.27 	not lapse. Interest earned from investment of money in this account must be deposited in 
36.28 	the trunk highway revolving loan account. 

36.29 	Sec. 2. Minnesota Statutes 2006, section 473.388, subdivision 4, is amended to read:
36.30 		Subd. 4.Financial assistance. (a) The council must grant the requested financial 
36.31 	assistance if it determines that the proposed service is intended to replace the service to 
36.32 	the applying city or town or combination thereof by the council and that the proposed 
37.1 	service will meet the needs of the applicant at least as efficiently and effectively as the 
37.2 	existing service.
37.3 	(b) The amount of assistance which the council must provide to a system under this 
37.4 	section may not be less than the sum of the amounts determined for each municipality 
37.5 	comprising the system as follows:
37.6 	(1) the transit operating assistance grants received under this subdivision by the 
37.7 	municipality in calendar year 2001 or the tax revenues for transit services levied by the 
37.8 	municipality for taxes payable in 2001, including that portion of the levy derived from 
37.9 	the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of 
37.10 	the municipality's aid under section 273.1398, subdivision 2, attributable to the transit 
37.11 	levy; times 
37.12 	(2) the ratio of (i) the appropriation from the transit fund to the council for nondebt 
37.13 	transit operations an amount equal to 3.623 percent of the state revenues generated from 
37.14 	the taxes imposed under section 297A.815 and chapter 297B for the current fiscal year to 
37.15 	(ii) the total levy certified by the council under section 473.446 and the opt-out transit 
37.16 	operating assistance grants received under this subdivision in calendar year 2001 or the 
37.17 	tax revenues for transit services levied by all replacement service municipalities under 
37.18 	this section for taxes payable in 2001, including that portion of the levy derived from 
37.19 	the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of 
37.20 	homestead and agricultural credit aid under section 273.1398, subdivision 2, attributable 
37.21 	to nondebt transit levies, times 
37.22 	(3) the ratio of (i) the municipality's total taxable market value for taxes payable in 
37.23 	the most recent year for which data is available 2007 divided by the municipality's total 
37.24 	taxable market value for taxes payable in 2001, to (ii) the total taxable market value of 
37.25 	all property in the metropolitan area located in replacement service municipalities for 
37.26 	taxes payable in the most recent year for which data is available 2007 divided by the 
37.27 	total taxable market value of all property in the metropolitan area located in replacement 
37.28 	service municipalities for taxes payable in 2001.
37.29 	(c) The council shall pay the amount to be provided to the recipient from the funds 
37.30 	the council would otherwise use to fund its transit operations receives in the metropolitan 
37.31 	area transit account under section 16A.88.

37.32 	Sec. 3.  REPEALER.
 37.33 	Minnesota Statutes 2006, section 174.32, is repealed.

37.34 	Sec. 4. EFFECTIVE DATE.
 38.1 	Except as specifically provided otherwise, this article is effective July 1, 2007.

38.2 	ARTICLE 7
38.3 	DEPARTMENT OF PUBLIC SAFETY SERVICE FEES

38.4 	Section 1. Minnesota Statutes 2006, section 168.017, subdivision 3, is amended to read:
38.5 		Subd. 3.Exceptions. (a) The registrar shall register all vehicles subject to 
38.6 	registration under the monthly series system for a period of 12 consecutive calendar 
38.7 	months, unless:
38.8 	(1) the application is an original rather than renewal application; or
38.9 	(2) the applicant is a licensed motor vehicle lessor under section 168.27, in which 
38.10 	case the applicant may apply for initial or renewed registration of a vehicle for a period 
38.11 	of four or more months, the month of expiration to be designated by the applicant at the 
38.12 	time of registration. However, to qualify for this exemption, the applicant must pay a $10 
38.13 	administrative fee and present the application to the registrar at St. Paul, or ata designated 
38.14 	deputy registrar offices as the registrar may designate. office. At the end of the initial 
38.15 	registration period, the applicant may only renew the registration on the vehicle for the 
38.16 	remainder of the period prescribed under subdivision 1 had the applicant not utilized the 
38.17 	exception in this subdivision. Upon the renewal of registration, the applicant shall pay 
38.18 	1/12 of the annual tax for each calendar month remaining in the registration period in 
38.19 	addition to a $10 administrative fee. Nothing in this subdivision prohibits the applicant 
38.20 	from purchasing registration for an additional full registration period in conjunction with 
38.21 	the purchase of the remainder portion.
38.22 	(b) In any instance except that of a licensed motor vehicle lessor, the registrar shall 
38.23 	not approve registering the vehicle subject to the application for a period of less than three 
38.24 	months, except when the registrar determines that to do otherwise will help to equalize 
38.25 	the registration and renewal work load of the department.
38.26 	(c) The fee collected under paragraph (a), clause (2), must be deposited in the vehicle 
38.27 	services operating account in the special revenue fund as specified in section 299A.705.

38.28 	Sec. 2. Minnesota Statutes 2006, section 168.12, subdivision 5, is amended to read:
38.29 		Subd. 5.Additional fee. (a) In addition to any fee otherwise authorized or any tax 
38.30 	otherwise imposed upon any vehicle, the payment of which is required as a condition to 
38.31 	the issuance of any plate or plates, the commissioner shall impose the fee specified in 
38.32 	paragraph (b) that is calculated to cover the cost of manufacturing and issuing the plate 
38.33 	or plates, except for plates issued to disabled veterans as defined in section 168.031 and 
38.34 	plates issued pursuant to section 168.124, 168.125, or 168.27, subdivisions 16 and 17, 
39.1 	for passenger automobiles. The commissioner shall issue graphic design plates only 
39.2 	for vehicles registered pursuant to section 168.017 and recreational vehicles registered 
39.3 	pursuant to section 168.013, subdivision 1g.
39.4 	(b) Unless otherwise specified or exempted by statute, the following plate and 
39.5 	validation sticker fees apply for the original, duplicate, or replacement issuance of a 
39.6 	plate in a plate year:

39.7	Sequential Regular Double Plate
		$
	4.25
	
39.8	Sequential Special Plate-Double
		$
	7.00
	
39.9	Sequential Regular Single Plate
		$
	3.00
	
39.10	Sequential Special Plate-Single
		$
	5.50
	
39.11	Utility Trailer Self-Adhesive Plate
		$
	2.50
	
39.12	Nonsequential Double Plate
		$
	14.00
	
39.13	Nonsequential Single Plate
		$
	10.00
	
39.14	Duplicate Sticker
		$
	1.00

39.15	License Plate 
			Single
		Double
	
39.16		Regular and Disability
		$
	4.50
	$
	6.00
	
39.17		Special
		$
	8.50
	$
	10.00
	
39.18		Personalized (Replacement)
		$
	10.00
	$
	14.00
	
39.19		Collector Category
		$
	13.50
	$
	15.00
	
39.20		Emergency Vehicle Display
		$
	3.00
	$
	6.00
	
39.21		Utility Trailer Self-Adhesive
		$
	2.50
			
39.22	Stickers
						
39.23		Duplicate Year
		$
	1.00
	$
	1.00
	
39.24
39.25		International Fuel Tax 
Agreement
		$
	2.50
			
39.26 	(c) For vehicles that require two of the categories above, the registrar shall only 
39.27 	charge the higher of the two fees and not a combined total.

39.28 	Sec. 3. Minnesota Statutes 2006, section 168A.29, subdivision 1, is amended to read:
39.29 		Subdivision 1.Amounts. (a) The department must be paid the following fees:
39.30 	(1) for filing an application for and the issuance of an original certificate of title, the 
39.31 	sum of $5.50$6.25 of which $2.50$3.25 must be paid into the vehicle services operating 
39.32 	account of the special revenue fund under section 299A.705;
39.33 	(2) for each security interest when first noted upon a certificate of title, including the 
39.34 	concurrent notation of any assignment thereof and its subsequent release or satisfaction, 
39.35 	the sum of $2, except that no fee is due for a security interest filed by a public authority 
39.36 	under section 168A.05, subdivision 8;
40.1 	(3) for the transfer of the interest of an owner and the issuance of a new certificate of 
40.2 	title, the sum of $5.50 of which $2.50 must be paid into the vehicle services operating 
40.3 	account of the special revenue fund under section 299A.705;
40.4 	(4) for each assignment of a security interest when first noted on a certificate of title, 
40.5 	unless noted concurrently with the security interest, the sum of $1;
40.6 	(5) for issuing a duplicate certificate of title, the sum of $6.50$7.25 of which $2.50
40.7 	$3.25 must be paid into the vehicle services operating account of the special revenue fund 
40.8 	under section 299A.705.
40.9 	(b) After June 30, 1994, in addition to each of the fees required under paragraph (a), 
40.10 	clauses (1) and (3), the department must be paid $3.50. The additional $3.50 fee collected 
40.11 	under this paragraph must be deposited in the special revenue fund and credited to the 
40.12 	public safety motor vehicle account established in section 299A.70.

40.13 	Sec. 4. Minnesota Statutes 2006, section 171.02, subdivision 3, is amended to read:
40.14 		Subd. 3.Motorized bicycle. (a) A motorized bicycle may not be operated on any 
40.15 	public roadway by any person who does not possess a valid driver's license, unless the 
40.16 	person has obtained a motorized bicycle operator's permit or motorized bicycle instruction 
40.17 	permit from the commissioner of public safety. The operator's permit may be issued to 
40.18 	any person who has attained the age of 15 years and who has passed the examination 
40.19 	prescribed by the commissioner. The instruction permit may be issued to any person who 
40.20 	has attained the age of 15 years and who has successfully completed an approved safety 
40.21 	course and passed the written portion of the examination prescribed by the commissioner.
40.22 	(b) This course must consist of, but is not limited to, a basic understanding of:
40.23 	(1) motorized bicycles and their limitations;
40.24 	(2) motorized bicycle laws and rules;
40.25 	(3) safe operating practices and basic operating techniques;
40.26 	(4) helmets and protective clothing;
40.27 	(5) motorized bicycle traffic strategies; and
40.28 	(6) effects of alcohol and drugs on motorized bicycle operators.
40.29 	(c) The commissioner may adopt rules prescribing the content of the safety course, 
40.30 	examination, and the information to be contained on the permits. A person operating a 
40.31 	motorized bicycle under a motorized bicycle permit is subject to the restrictions imposed 
40.32 	by section 169.974, subdivision 2, on operation of a motorcycle under a two-wheel 
40.33 	instruction permit.
40.34 	(d) The fees for motorized bicycle operator's permits are as follows:

41.1	(1)
	Examination and operator's permit, valid for one year
	$ 66.75
	
41.2	(2)
	Duplicate
	$ 33.75
	
41.3	(3)
	Renewal permit before age 21 and valid until age 21
	$ 99.75
	
41.4	(4)
	Renewal permit age 21 or older and valid for four years
	$1515.75
	
41.5	(5)
	Duplicate of any renewal permit
	$ 4.505.25
	
41.6
41.7	(6)
	Written examination and instruction permit, valid for 30 
days
	$ 66.75

41.8 	Sec. 5. Minnesota Statutes 2006, section 171.06, subdivision 2, is amended to read:
41.9 		Subd. 2.Fees. (a) The fees for a license and Minnesota identification card are 
41.10 	as follows:

41.11
41.12	Classified Driver's 
License
		D-$21.50
	C-$25.50
	B-$32.50
	A-$40.50
	
41.13	Classified Under -21 D.L.
		D-$21.50
	C-$25.50
	B-$32.50
	A-$20.50
	
41.14
41.15	Classified Driver's 
License
		D-$22.25
	C-$26.25
	B-$33.25
	A-$41.25
	
41.16	Classified Under-21 D.L.
		D-$22.25
	C-$26.25
	B-$33.25
	A-$21.25
	
41.17
41.18	Instruction Permit
					$9.50
$10.25
	
41.19
41.20	Provisional License
					$12.50
$13.25
	
41.21
41.22
41.23	Duplicate License or 
duplicate identification 
card
					$11.00
$11.75

41.24
41.25
41.26
41.27
41.28
41.29
41.30
41.31	Minnesota identification 
card or Under-21 
Minnesota identification 
card, other than duplicate, 
except as otherwise 
provided in section 
171.07, subdivisions 3 
and 3a
					$15.50
$16.25
	
41.32 	(b) Notwithstanding paragraph (a), an individual who holds a provisional license and 
41.33 	has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33, 
41.34 	169A.35, or sections 169A.50 to 169A.53, (2) convictions for crash-related moving 
41.35 	violations, and (3) convictions for moving violations that are not crash related, shall have a 
41.36 	$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation" 
41.37 	has the meaning given it in section 171.04, subdivision 1.
41.38 	(c) In addition to the driver's license fee required under paragraph (a), the 
41.39 	commissioner shall collect an additional $4 processing fee from each new applicant 
41.40 	or individual renewing a license with a school bus endorsement to cover the costs for 
41.41 	processing an applicant's initial and biennial physical examination certificate. The 
42.1 	department shall not charge these applicants any other fee to receive or renew the 
42.2 	endorsement.

42.3 	Sec. 6. Minnesota Statutes 2006, section 171.07, subdivision 3a, is amended to read:
42.4 		Subd. 3a.Identification cards for seniors. A Minnesota identification card issued 
42.5 	to an applicant 65 years of age or over shall be of a distinguishing color and plainly 
42.6 	marked "senior." The fee for the card issued to an applicant 65 years of age or over shall 
42.7 	be one-half the required fee for a class D driver's license rounded down to the nearest 
42.8 	quarter dollar. A Minnesota identification card or a Minnesota driver's license issued to a 
42.9 	person 65 years of age or over shall be valid identification for the purpose of qualifying 
42.10 	for reduced rates, free licenses or services provided by any board, commission, agency or 
42.11 	institution that is wholly or partially funded by state appropriations.

42.12 	Sec. 7. Minnesota Statutes 2006, section 171.07, subdivision 11, is amended to read:
42.13 		Subd. 11.Standby or temporary custodian. (a) Upon the written request of the 
42.14 	applicant and upon payment of an additional fee of $3.50 $4.25, the department shall issue 
42.15 	a driver's license or Minnesota identification card bearing a symbol or other appropriate 
42.16 	identifier indicating that the license holder has appointed an individual to serve as a 
42.17 	standby or temporary custodian under chapter 257B.
42.18 	(b) The request must be accompanied by a copy of the designation executed under 
42.19 	section 257B.04.
42.20 	(c) The department shall maintain a computerized records system of all individuals 
42.21 	listed as standby or temporary custodians by driver's license and identification card 
42.22 	applicants. This data must be released to appropriate law enforcement agencies under 
42.23 	section 13.69. Upon a parent's request and payment of a fee of $3.50 $4.25, the 
42.24 	department shall revise its list of standby or temporary custodians to reflect a change 
42.25 	in the appointment.
42.26 	(d) At the request of the license or cardholder, the department shall cancel the 
42.27 	standby or temporary custodian indication without additional charge. However, this 
42.28 	paragraph does not prohibit a fee that may be applicable for a duplicate or replacement 
42.29 	license or card, renewal of a license, or other service applicable to a driver's license or 
42.30 	identification card.
42.31 	(e) Notwithstanding sections 13.08, subdivision 1, and 13.69, the department 
42.32 	and department employees are conclusively presumed to be acting in good faith when 
42.33 	employees rely on statements made, in person or by telephone, by persons purporting to be 
42.34 	law enforcement and subsequently release information described in paragraph (b). When 
43.1 	acting in good faith, the department and department personnel are immune from civil 
43.2 	liability and not subject to suit for damages resulting from the release of this information.
43.3 	(f) The department and its employees:
43.4 	(1) have no duty to inquire or otherwise determine whether a designation submitted 
43.5 	under this subdivision is legally valid and enforceable; and
43.6 	(2) are immune from all civil liability and not subject to suit for damages resulting 
43.7 	from a claim that the designation was not legally valid and enforceable.
43.8 	(g) Of the fees received by the department under this subdivision:
43.9 	(1) Up to $61,000 received must be deposited in the general fund.
43.10 	(2) All other fees must be deposited in the driver services operating account in the 
43.11 	special revenue fund specified in section 299A.705.

43.12 	Sec. 8. Minnesota Statutes 2006, section 171.20, subdivision 4, is amended to read:
43.13 		Subd. 4.Reinstatement fee. (a) Before the license is reinstated, (1) an individual 
43.14 	whose driver's license has been suspended under section 171.16, subdivisions 2 and 3; 
43.15 	171.175; 171.18; or 171.182, or who has been disqualified from holding a commercial 
43.16 	driver's license under section 171.165, and (2) an individual whose driver's license has 
43.17 	been suspended under section 171.186 and who is not exempt from such a fee, must 
43.18 	pay a fee of $20.
43.19 	(b) Before the license is reinstated, an individual whose license has been suspended 
43.20 	under sections 169.791 to 169.798 must pay a $20 reinstatement fee.
43.21 	(c) When fees are collected by a licensing agent appointed under section 171.061, a 
43.22 	handling charge is imposed in the amount specified under section 171.061, subdivision 4. 
43.23 	The reinstatement fee and surcharge must be deposited in an approved state depository as 
43.24 	directed under section 171.061, subdivision 4.
43.25 	(d) Reinstatement fees collected under paragraph (a) for suspensions under sections 
43.26 	171.16, subdivision 3, and 171.18, subdivision 1, clause (10), must be deposited in the 
43.27 	special revenue fund and are appropriated to the Peace Officer Standards and Training 
43.28 	Board for peace officer training reimbursement to local units of government.
43.29 	(e) A suspension may be rescinded without fee for good cause.

43.30 	Sec. 9. Minnesota Statutes 2006, section 299D.09, is amended to read:
43.31 	299D.09 ESCORT SERVICE; APPROPRIATION; RECEIPTS.
43.32 	Fees charged for escort services provided by the State Patrol are annually 
43.33 	appropriated to the commissioner of public safety to administer and provide these services.
44.1 	The fees charged for services provided by the State Patrol with a vehicle are $73.60 
44.2 	an hour in fiscal year 2008 and $75.76 an hour in fiscal year 2009 and thereafter. The fees 
44.3 	charged for services provided without a vehicle are $54.00 an hour in fiscal year 2008 and 
44.4 	$56.16 an hour in fiscal year 2009 and thereafter.
44.5 	The fees charged for State Patrol flight services are $140 an hour for a fixed wing 
44.6 	aircraft, $490 an hour for a helicopter, and $600 an hour for the Queen Air.

44.7 	Sec. 10. EFFECTIVE DATE.
 44.8 	Except as specifically provided otherwise, this article is effective July 1, 2007.