1.1 	A bill for an act
1.2 	relating to transportation appropriations; appropriating money for transportation, 
1.3 	Metropolitan Council, and public safety activities; providing for fund transfers, 
1.4 	general contingent accounts, and tort claims; providing for various fees and 
1.5 	accounts; allocating county state-aid highway funds; allocating motor vehicle 
1.6 	sales tax and motor vehicle lease sales tax; adjusting fuel tax; adjusting vehicle 
1.7 	registration tax; imposing half-cent sales tax for transportation in metropolitan 
1.8 	area; enabling local jurisdictions to levy half-cent sales tax for transportation; 
1.9 	authorizing counties to levy wheelage tax; authorizing issuance of trunk 
1.10 	highway bonds; providing for highway construction training and contracting 
1.11 	related to disadvantaged business enterprise program; modifying light-rail 
1.12 	transit governance; authorizing metropolitan council bonding; expanding transit 
1.13 	taxing district; redistributing five percent of highway user tax distribution fund; 
1.14 	adjusting share of highway funds for off-road use; requiring system to allow 
1.15 	credit card payments of driver and vehicle service fees; removing 1999 restriction 
1.16 	on construction of certain light rail transit facilities, and a 2001 restriction on the 
1.17 	transit tax levy authority of the Metropolitan Council; requiring reports; making 
1.18 	technical and clarifying changes; amending Minnesota Statutes 2006, sections 
1.19 	16A.88; 53C.01, subdivision 2; 161.04, by adding a subdivision; 161.081; 
1.20 	162.07, subdivision 1, by adding subdivisions; 163.051; 168.011, subdivision 
1.21 	6; 168.013, subdivisions 1, 1a; 168.017, subdivision 3; 168.12, subdivision 5; 
1.22 	168.1255, by adding a subdivision; 168A.29, subdivision 1; 171.02, subdivision 
1.23 	3; 171.06, subdivision 2; 171.07, subdivisions 3a, 11; 171.20, subdivision 
1.24 	4; 171.29, subdivision 2; 174.03, subdivision 9, by adding subdivisions; 
1.25 	296A.07, subdivision 3; 296A.08, subdivision 2; 296A.18; 297A.64, subdivision 
1.26 	2; 297A.70, subdivision 2; 297A.71, by adding a subdivision; 297A.815, 
1.27 	subdivision 1, by adding subdivisions; 297A.94; 297B.01, subdivision 8; 
1.28 	297B.09, subdivision 1; 299D.09; 473.166; 473.39, by adding a subdivision; 
1.29 	473.399; 473.3993, subdivision 3; 473.3994; 473.3997; 473.4051; 473.407, 
1.30 	subdivision 1; 473.446, subdivisions 2, 8; 609.531, subdivision 1; proposing 
1.31 	coding for new law in Minnesota Statutes, chapters 168; 174; 296A; 297A; 
1.32 	398A; 473; repealing Minnesota Statutes 2006, sections 174.32; 473.123, 
1.33 	subdivision 3d; 473.4461; Laws 1999, chapter 230, section 44.
1.34 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.1 	ARTICLE 1
2.2 	TRANSPORTATION APPROPRIATIONS

2.3	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
2.4 	The amounts shown in this section summarize direct appropriations, by fund, made 
2.5 	in this article.

2.6			2008
		2009
		Total
	
2.7	General
	$
	104,608,000
	$
	104,526,000
	$
	209,134,000
	
2.8	Airports
		25,524,000
		25,592,000
		51,116,000
	
2.9	C.S.A.H.
		531,051,000
		575,043,000
		1,106,094,000
	
2.10	M.S.A.S.
		142,624,000
		149,587,000
		292,211,000
	
2.11	Special Revenue
		46,789,000
		47,877,000
		94,666,000
	
2.12	Highway User
		8,938,000
		9,238,000
		18,176,000
	
2.13	Trunk Highway
		1,324,498,000
		1,409,601,000
		2,734,099,000
	
2.14	Total
	$
	2,184,032,000
	$
	2,321,464,000
	$
	4,505,496,000

2.15	Sec. 2. TRANSPORTATION APPROPRIATIONS.
 	
2.16 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.17 	agencies and for the purposes specified in this article.  The appropriations are from the 
2.18 	general fund, or another named fund, and are available for the fiscal years indicated 
2.19 	for each purpose.  The figures "2008" and "2009" used in this article mean that the 
2.20 	appropriations listed under them are available for the fiscal year ending June 30, 2008, or 
2.21 	June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 
2.22 	year 2009. "The biennium" is fiscal years 2008 and 2009.  Appropriations for the fiscal 
2.23 	year ending June 30, 2007, are effective the day following final enactment.

2.24				APPROPRIATIONS
	
2.25				Available for the Year
	
2.26				Ending June 30
	
2.27					2008
		2009

2.28	Sec. 3. TRANSPORTATION

2.29	Subdivision 1.Total Appropriation
 	$
	1,961,411,000
	$
	2,093,046,000
	
2.30 	The appropriations in this section are from 
2.31 	the trunk highway fund, except when another 
2.32 	fund is named.

2.33	Appropriations by Fund
	
2.34		2008
	2009
	
2.35	General
	19,480,000
	19,239,000
	
3.1	Airports
	25,474,000
	25,542,000
	
3.2	C.S.A.H.
	531,051,000
	575,043,000
	
3.3	M.S.A.S.
	142,624,000
	149,587,000
	
3.4	Trunk Highway
	1,242,782,000
	1,323,635,000
	
3.5 	The amounts that may be spent for each 
3.6 	purpose are specified in the following 
3.7 	subdivisions.

3.8	Subd.  2.Multimodal Systems

3.9	(a) Aeronautics

3.10	(1) Airport Development and Assistance
		20,298,000
		20,298,000
	
3.11 	Of this amount, $6,000,000 the first year 
3.12 	and $6,000,000 the second year are onetime 
3.13 	appropriations and do not add to the 
3.14 	airport development and assistance base 
3.15 	appropriation.
3.16 	This appropriation is from the state 
3.17 	airports fund and must be spent according 
3.18 	to Minnesota Statutes, section 360.305, 
3.19 	subdivision 4.
3.20 	Of this appropriation $200,000 in the first 
3.21 	year is to the Legislative Coordinating 
3.22 	Commission for the administrative expenses 
3.23 	of the Airport Funding Advisory Task Force 
3.24 	and for other costs relating to the preparation 
3.25 	of the report required by the task force, 
3.26 	including the costs of hiring a consultant, 
3.27 	if needed. Any remaining amount of this 
3.28 	appropriation shall revert to the state airports 
3.29 	fund.
3.30 	Notwithstanding Minnesota Statutes, section 
3.31 	16A.28, subdivision 6, this appropriation is 
3.32 	available for five years after appropriation.
4.1 	If the appropriation for either year is 
4.2 	insufficient, the appropriation for the other 
4.3 	year is available for it.

4.4	(2) Aviation Support and Services

4.5	Appropriations by Fund
	
4.6	Airports
	5,151,000
	5,219,000
	
4.7	Trunk Highway
	847,000
	856,000
	
4.8 	$65,000 the first year and $65,000 the second 
4.9 	year are for the Civil Air Patrol.

4.10	(b) Transit

4.11	Appropriations by Fund
	
4.12	General
	18,812,000
	18,814,000
	
4.13	Trunk Highway
	733,000
	747,000

4.14	(c) Freight

4.15	Appropriations by Fund
	
4.16	General
	353,000
	360,000
	
4.17	Trunk Highway
	 4,984,000
	 5,071,000

4.18	(d) Rail
					
4.19 	$250,000 the first year is appropriated from 
4.20 	the general fund to the commissioner of 
4.21 	transportation for a grant to the Northstar 
4.22 	Corridor Development Authority to fund 
4.23 	advanced preliminary engineering, updated 
4.24 	environmental documentation, property 
4.25 	appraisals, and negotiations with the railroad 
4.26 	to extend commuter rail service on the 
4.27 	Burlington Northern Santa Fe rail line 
4.28 	between Big Lake and Rice. This is a 
4.29 	onetime appropriation and is available until 
4.30 	spent and does not lapse.

4.31	Subd.  3.State Roads

4.32	(a) Infrastructure Investment and Planning

4.33	(1) Infrastructure Investment Support
		170,445,000 
		173,248,000 
	
5.1 	$266,000 the first year and $266,000 the 
5.2 	second year are available for grants to 
5.3 	metropolitan planning organizations outside 
5.4 	the seven-county metropolitan area.
5.5 	$75,000 the first year and $75,000 the 
5.6 	second year are for a transportation research 
5.7 	contingent account to finance research 
5.8 	projects that are reimbursable from the 
5.9 	federal government or from other sources. 
5.10 	If the appropriation for either year is 
5.11 	insufficient, the appropriation for the other 
5.12 	year is available for it.
5.13 	$600,000 the first year and $600,000 
5.14 	the second year are available for grants 
5.15 	for transportation studies outside the 
5.16 	metropolitan area to identify critical 
5.17 	concerns, problems, and issues. These 
5.18 	grants are available (1) to regional 
5.19 	development commissions, (2) in regions 
5.20 	where no regional development commission 
5.21 	is functioning, to joint powers boards 
5.22 	established under agreement of two or 
5.23 	more political subdivisions in the region to 
5.24 	exercise the planning functions of a regional 
5.25 	development commission, and (3) in regions 
5.26 	where no regional development commission 
5.27 	or joint powers board is functioning, to the 
5.28 	department's district office for that region.
5.29 	Up to $1,000,000 the first year is for 
5.30 	technical support of trunk highway 
5.31 	congestion reduction under the United 
5.32 	States Department of Transportation Urban 
5.33 	Partnership program. Of this amount, 
5.34 	$200,000 is for a grant to Hubert H. 
6.1 	Humphrey Institute of Public Affairs for its 
6.2 	participation in this program.
6.3 	$5,000,000 the first year is for a pilot project 
6.4 	to demonstrate technologies that will allow 
6.5 	for the future replacement of the gas tax with 
6.6 	a fuel-neutral mileage charge.

6.7	(2) State Road Construction
		728,232,000
		764,131,000
	
6.8 	It is estimated that these appropriations will 
6.9 	be funded as follows:

6.10
6.11	Federal Highway 
Aid
	193,463,000 
	350,442,000
	
6.12	Highway User Taxes
	534,769,000
	413,689,000
	
6.13 	The commissioner of transportation shall 
6.14 	notify the chair of the Transportation Budget 
6.15 	Division of the senate and the chair of the 
6.16 	Transportation Finance Committee of the 
6.17 	house of representatives of any significant 
6.18 	events that should cause these estimates to 
6.19 	change.
6.20 	This appropriation is for the actual 
6.21 	construction, reconstruction, and 
6.22 	improvement of trunk highways, including 
6.23 	design-build contracts and consultant usage 
6.24 	to support these activities. This includes the 
6.25 	cost of actual payment to landowners for 
6.26 	lands acquired for highway rights-of-way, 
6.27 	payment to lessees, interest subsidies, and 
6.28 	relocation expenses.
6.29 	Of these appropriations:
6.30 	(a) $2,000,000 the first year is to construct 
6.31 	and install concrete barriers and cable median 
6.32 	barriers on trunk highways, with priority 
6.33 	given to trunk highways where crossover 
6.34 	crashes have occurred, resulting in fatalities.
7.1 	(b) $70,000 the first year is for the state's 
7.2 	share in reconstructing an intersection of 
7.3 	Trunk Highway 60 and Cherry Street in 
7.4 	Mazeppa.
7.5 	The commissioner may not plan, design, 
7.6 	or construct a J-turn turnabout on Trunk 
7.7 	Highways 169, within the city of Belle 
7.8 	Plaine, or within one-half mile of the Belle 
7.9 	Plaine city limits.
7.10 	The commissioner may transfer up to 
7.11 	$15,000,000 each year to the transportation 
7.12 	revolving loan fund.
7.13 	The commissioner may receive money 
7.14 	covering other shares of the cost of 
7.15 	partnership projects. These receipts are 
7.16 	appropriated to the commissioner for these 
7.17 	projects.

7.18	(3) Highway Debt Service
		61,237,000
		92,206,000
	
7.19 	$57,448,000 the first year and $82,183,000 
7.20 	the second year are for transfer to the state 
7.21 	bond fund. If this appropriation is insufficient 
7.22 	to make all transfers required in the year for 
7.23 	which it is made, the commissioner of finance 
7.24 	shall notify the Committee on Finance of 
7.25 	the senate and the Committee on Ways and 
7.26 	Means of the house of representatives of 
7.27 	the amount of the deficiency and shall then 
7.28 	transfer that amount under the statutory open 
7.29 	appropriation. Any excess appropriation 
7.30 	cancels to the trunk highway fund.

7.31	(b) Infrastructure Operations and Maintenance
		215,607,000 
		226,021,000 

7.32	(c) Electronic Communications

8.1	Appropriations by Fund
	
8.2	General
	 9,000
	9,000
	
8.3	Trunk Highway
	4,858,000
	4,943,000
	
8.4 	The general fund appropriation is to equip 
8.5 	and operate the Roosevelt signal tower for 
8.6 	Lake of the Woods weather broadcasting.

8.7	Subd.  4.Local Roads  

8.8	(a) County State Aids
		531,051,000
		575,043,000
	
8.9 	This appropriation is from the county 
8.10 	state-aid highway fund and is available until 
8.11 	spent.

8.12	(b) Municipal State Aids
		142,624,000
		149,587,000
	
8.13 	This appropriation is from the municipal 
8.14 	state-aid street fund and is available until 
8.15 	spent.
8.16 	If an appropriation for either county state 
8.17 	aids or municipal state aids does not exhaust 
8.18 	the balance in the fund from which it is 
8.19 	made in the year for which it is made, the 
8.20 	commissioner of finance, upon request of 
8.21 	the commissioner of transportation, shall 
8.22 	notify the chair of the Transportation Finance 
8.23 	Committee of the house of representatives 
8.24 	and the chair of the Transportation Budget 
8.25 	Division of the senate of the amount of the 
8.26 	remainder and shall then add that amount 
8.27 	to the appropriation. The amount added is 
8.28 	appropriated for the purposes of county state 
8.29 	aids or municipal state aids, as appropriate.
8.30 	If the appropriation for either county state 
8.31 	aids or municipal state aids does exhaust 
8.32 	the balance in the fund from which it is 
8.33 	made in the year for which it is made, 
8.34 	the commissioner of finance shall notify 
9.1 	the chair of the Transportation Finance 
9.2 	Committee of the house of representatives 
9.3 	and the chair of the Transportation Budget 
9.4 	Division of the senate of the amount by 
9.5 	which the appropriation exceeds the balance 
9.6 	and shall then reduce that amount from the 
9.7 	appropriation.

9.8	Subd.  5.General Support and Services 

9.9	(a) Department Support

9.10	Appropriations by Fund
	
9.11	Airports
	25,000
	25,000
	
9.12	Trunk Highway
	39,263,000
	39,794,000

9.13	(b) Buildings

9.14	Appropriations by Fund
	
9.15	General
	56,000
	56,000
	
9.16	Trunk Highway
	16,576,000
	16,618,000
	
9.17 	If the appropriation for either year is 
9.18 	insufficient, the appropriation for the other 
9.19 	year is available for it.

9.20	Subd.  6.Transfers
 					
9.21 	(a) With the approval of the commissioner of 
9.22 	finance, the commissioner of transportation 
9.23 	may transfer unencumbered balances among 
9.24 	the appropriations from the trunk highway 
9.25 	fund and the state airports fund made in this 
9.26 	section. No transfer may be made from the 
9.27 	appropriation for state road construction. No 
9.28 	transfer may be made from the appropriations 
9.29 	for debt service to any other appropriation. 
9.30 	Transfers under this paragraph may not be 
9.31 	made between funds. Transfers between 
9.32 	programs must be reported immediately 
9.33 	to the chair of the Transportation Budget 
9.34 	Division of the senate and the chair of the 
10.1 	Transportation Finance Committee of the 
10.2 	house of representatives.
10.3 	(b) The commissioner of finance shall 
10.4 	transfer from the flexible account in the 
10.5 	county state-aid highway fund $5,950,000 
10.6 	the first year and $2,820,000 the second 
10.7 	year to the municipal turnback account 
10.8 	in the municipal state-aid street fund and 
10.9 	$12,940,000 the first year and $15,330,000 
10.10 	the second year to the trunk highway fund; 
10.11 	and the remainder in each year to the county 
10.12 	turnback account in the county state-aid 
10.13 	highway fund.

10.14
10.15	Subd.  7.Use of State Road Construction 
Appropriations
 					
10.16 	Any money appropriated to the commissioner 
10.17 	of transportation for state road construction 
10.18 	for any fiscal year before fiscal year 2008 is 
10.19 	available to the commissioner during fiscal 
10.20 	years 2008 and 2009 to the extent that the 
10.21 	commissioner spends the money on the 
10.22 	state road construction project for which the 
10.23 	money was originally encumbered during the 
10.24 	fiscal year for which it was appropriated. The 
10.25 	commissioner of transportation shall report 
10.26 	to the commissioner of finance by August 
10.27 	1, 2007, and August 1, 2008, on a form 
10.28 	the commissioner of finance provides, on 
10.29 	expenditures made during the previous fiscal 
10.30 	year that are authorized by this subdivision.

10.31	Subd.  8.Contingent Appropriation
 					
10.32 	The commissioner of transportation, with 
10.33 	the approval of the governor and the written 
10.34 	approval of at least five members of a 
10.35 	group consisting of the members of the 
11.1 	Legislative Advisory Commission under 
11.2 	Minnesota Statutes, section 3.30, and the 
11.3 	ranking minority members of the house of 
11.4 	representatives and senate committees with 
11.5 	jurisdiction over transportation finance, may 
11.6 	transfer all or part of the unappropriated 
11.7 	balance in the trunk highway fund to an 
11.8 	appropriation (1) for trunk highway design, 
11.9 	construction, or inspection in order to 
11.10 	take advantage of an unanticipated receipt 
11.11 	of income to the trunk highway fund or 
11.12 	to take advantage of federal advanced 
11.13 	construction funding, (2) for trunk highway 
11.14 	maintenance in order to meet an emergency, 
11.15 	or (3) to pay tort or environmental claims. 
11.16 	Nothing in this subdivision authorizes the 
11.17 	commissioner to increase the use of federal 
11.18 	advanced construction funding beyond 
11.19 	amounts specifically authorized. Any 
11.20 	transfer as a result of the use of federal 
11.21 	advanced construction funding must include 
11.22 	an analysis of the effects on the long-term 
11.23 	trunk highway fund balance. The amount 
11.24 	transferred is appropriated for the purpose of 
11.25 	the account to which it is transferred.

11.26	Sec. 4. METROPOLITAN COUNCIL 

11.27	Subdivision 1.Total Appropriation
 	$
	78,753,000
	$
	78,753,000
	
11.28 	The amounts that may be spent for each 
11.29 	purpose are specified in the following 
11.30 	subdivisions.

11.31	Subd.  2.Bus Transit
 		73,453,000
		73,453,000
	
11.32 	This appropriation is for bus system 
11.33 	operations.

11.34	Subd.  3.Rail Operations
 		5,300,000
		5,300,000
	
12.1 	This appropriation is for operations of the 
12.2 	Hiawatha light rail transit line.

12.3	Sec. 5. PUBLIC SAFETY

12.4	Subdivision 1.Total Appropriation
 	$
	142,893,000 
	$
	148,690,000

12.5	Appropriations by Fund
	
12.6		2008
	2009
	
12.7	General
	6,375,000 
	6,534,000
	
12.8	Trunk Highway
	80,916,000
	85,166,000
	
12.9	Highway User
	8,813,000
	9,113,000
	
12.10	Special Revenue 
	 46,789,000
	47,877,000
	
12.11 	The amounts that may be spent for each 
12.12 	purpose are specified in the following 
12.13 	subdivisions.

12.14	Subd.  2.Administration and Related Services 

12.15	(a) Office of Communications

12.16	Appropriations by Fund
	
12.17	General
	39,000
	40,000
	
12.18	Trunk Highway
	363,000 
	377,000 

12.19	(b) Public Safety Support

12.20	Appropriations by Fund
	
12.21	General
	3,245,000
	3,336,000
	
12.22	Trunk Highway
	3,331,000
	3,420,000
	
12.23	Highway User 
	1,366,000
	1,366,000
	
12.24 	$110,000 the first year and $28,000 the 
12.25 	second year are appropriated from the 
12.26 	general fund to cover the cost of a security 
12.27 	coordinator for the 2008 Republican National 
12.28 	Convention. These amounts are onetime 
12.29 	appropriations and do not add to the public 
12.30 	safety support base appropriation.
12.31 	$380,000 the first year and $380,000 the 
12.32 	second year are for payment of public 
12.33 	safety officer survivor benefits under 
12.34 	Minnesota Statutes, section 299A.44. If the 
13.1 	appropriation for either year is insufficient, 
13.2 	the appropriation for the other year is 
13.3 	available for it.
13.4 	$1,199,000 the first year and $1,367,000 
13.5 	the second year are to be deposited in the 
13.6 	public safety officer's benefit account. This 
13.7 	money is available for reimbursements under 
13.8 	Minnesota Statutes, section 299A.465.
13.9 	$508,000 the first year and $508,000 
13.10 	the second year are for soft body armor 
13.11 	reimbursements under Minnesota Statutes, 
13.12 	section 299A.38.
13.13 	$792,000 the first year and $792,000 
13.14 	the second year are appropriated from the 
13.15 	general fund for transfer by the commissioner 
13.16 	of finance to the trunk highway fund on 
13.17 	December 31, 2007, and December 31, 2008, 
13.18 	respectively, in order to reimburse the trunk 
13.19 	highway fund for expenses not related to the 
13.20 	fund. These represent amounts appropriated 
13.21 	out of the trunk highway fund for general 
13.22 	fund purposes in the administration and 
13.23 	related services program.
13.24 	$610,000 the first year and $610,000 the 
13.25 	second year are appropriated from the 
13.26 	highway user tax distribution fund for 
13.27 	transfer by the commissioner of finance to 
13.28 	the trunk highway fund on December 31, 
13.29 	2007, and December 31, 2008, respectively, 
13.30 	in order to reimburse the trunk highway 
13.31 	fund for expenses not related to the fund. 
13.32 	These represent amounts appropriated out 
13.33 	of the trunk highway fund for highway 
13.34 	user tax distribution fund purposes in the 
13.35 	administration and related services program.
14.1 	$716,000 the first year and $716,000 the 
14.2 	second year are appropriated from the 
14.3 	highway user tax distribution fund for 
14.4 	transfer by the commissioner of finance to 
14.5 	the general fund on December 31, 2007, and 
14.6 	December 31, 2008, respectively, in order to 
14.7 	reimburse the general fund for expenses not 
14.8 	related to the fund. These represent amounts 
14.9 	appropriated out of the general fund for 
14.10 	operation of the criminal justice data network 
14.11 	related to driver and motor vehicle licensing.

14.12	(c) Technical Support Services

14.13	Appropriations by Fund
	
14.14	General
	91,000
	91,000
	
14.15	Trunk Highway
	2,344,000
	2,344,000
	
14.16	Highway User 
	19,000
	19,000

14.17	Subd.  3.State Patrol

14.18	(a) Patrolling Highways

14.19	Appropriations by Fund
	
14.20	General
	37,000
	37,000
	
14.21	Trunk Highway
	67,497,000
	71,393,000
	
14.22	Highway User 
	92,000
	92,000
	
14.23 	$2,060,000 the first year and $3,653,000 the 
14.24 	second year are for the cost of adding 40 
14.25 	State Patrol troopers.
14.26 	$1,335,000 the first year and $1,335,000 the 
14.27 	second year are to cover fuel costs.

14.28	(b) Commercial Vehicle Enforcement
		6,945,000
		7,196,000
	
14.29 	This appropriation is from the trunk highway 
14.30 	fund.

14.31	(c) Capitol Security
		2,963,000 
		3,030,000 
	
14.32 	The commissioner may not (1) spend 
14.33 	any money from the trunk highway fund 
14.34 	for capitol security or (2) permanently 
15.1 	transfer any state trooper from the patrolling 
15.2 	highways activity to capitol security.
15.3 	The commissioner may not transfer any 
15.4 	money (1) appropriated for Department of 
15.5 	Public Safety administration, the patrolling of 
15.6 	highways, commercial vehicle enforcement, 
15.7 	or driver and vehicle services to capitol 
15.8 	security or (2) from capitol security.

15.9	Subd.  4.Driver and Vehicle Services

15.10	(a) Vehicle Services

15.11	Appropriations by Fund
	
15.12	Highway User 
	7,336,000
	7,636,000
	
15.13	Special Revenue
	18,696,000 
	18,973,000
	
15.14 	The base appropriation from the highway 
15.15 	user tax distribution fund is $7,936,000 for 
15.16 	fiscal year 2010 and $8,236,000 for fiscal 
15.17 	year 2011.
15.18 	The special revenue fund appropriation is 
15.19 	from the vehicle services operating account.

15.20	(b) Driver Services

15.21	Appropriations by Fund
	
15.22	Special Revenue
	26,778,000
	27,550,000
	
15.23	Trunk Highway
	1,000
	1,000
	
15.24 	The special revenue fund appropriation is 
15.25 	from the driver services operating account.

15.26	Subd.  5.Traffic Safety
 		435,000 
		435,000 
	
15.27 	This appropriation is from the trunk highway 
15.28 	fund.
15.29 	The commissioner of public safety shall 
15.30 	spend 50 percent of the money available 
15.31 	to the state under Public Law 105-206, 
15.32 	section 164, and the remaining 50 percent 
15.33 	must be transferred to the commissioner 
16.1 	of transportation for hazard elimination 
16.2 	activities under United States Code, title 23, 
16.3 	section 152.

16.4	Subd.  6.Pipeline Safety
 		 1,315,000
		1,354,000
	
16.5 	This appropriation is from the pipeline safety 
16.6 	account in the special revenue fund.

16.7
16.8	Sec. 6. GENERAL CONTINGENT 
ACCOUNTS
 	$
	375,000
	$
	375,000

16.9	Appropriations by Fund
	
16.10	Trunk Highway
	200,000
	200,000
	
16.11	Highway User 
	125,000 
	125,000 
	
16.12	Airports
	50,000
	50,000
	
16.13 	The appropriations in this section may 
16.14 	only be spent with the approval of the 
16.15 	governor and the written approval of at 
16.16 	least five members of a group consisting of 
16.17 	the members of the Legislative Advisory 
16.18 	Commission under Minnesota Statutes, 
16.19 	section 3.30, and the ranking minority 
16.20 	members of the house of representatives and 
16.21 	senate committees with jurisdiction over 
16.22 	transportation finance.
16.23 	If an appropriation in this section for either 
16.24 	year is insufficient, the appropriation for the 
16.25 	other year is available for it.

16.26	Sec. 7. TORT CLAIMS
 	$
	600,000
	$
	600,000
	
16.27 	To be spent by the commissioner of finance.
16.28 	This appropriation is from the trunk highway 
16.29 	fund.
16.30 	If the appropriation for either year is 
16.31 	insufficient, the appropriation for the other 
16.32 	year is available for it.

16.33	Sec. 8. COMPENSATION ADJUSTMENTS
 					
17.1 	The appropriations in this article, and any 
17.2 	statutory appropriations from which state 
17.3 	employee compensation is paid from any 
17.4 	fund, include an amount sufficient to fund 
17.5 	compensation increases of at least 3.25 
17.6 	percent of the 2007 compensation base for 
17.7 	the first year, compounded at the rate of 3.25 
17.8 	percent for the second year. This amount 
17.9 	must be used for that purpose and no other.

17.10 	Sec. 9. LAFAYETTE BRIDGE.
 17.11 	The commissioner of transportation shall ensure that any reconstruction or 
17.12 	improvement of the Lafayette Bridge segment of U.S. Highway 52 is compatible with the 
17.13 	possibility of future implementation of transit, including light rail transit, on the bridge.

17.14 	Sec. 10. AIRPORT FUNDING ADVISORY TASK FORCE.
 17.15 		Subdivision 1.Task force established. The Airport Funding Advisory Task Force is 
17.16 	established to study and make recommendations regarding the best methods for funding 
17.17 	airports in the state and the state airports fund. The task force shall study:
17.18 	(1) the adequacy of current sources of revenue for the state airports fund and airports 
17.19 	in the state;
17.20 	(2) policy considerations regarding the use of the sales tax on aircraft as a potential 
17.21 	source of revenue for airports;
17.22 	(3) how other states fund airports;
17.23 	(4) projected aviation needs of the future, including required investments in aviation 
17.24 	infrastructure;
17.25 	(5) aircraft registration taxes; and
17.26 	(6) other issues relating to the funding of airports as determined by the task force.
17.27 		Subd. 2.Membership. (a) The task force is comprised of the following members:
17.28 	(1) three members of the senate, including at least one member from the minority 
17.29 	party, appointed by the Subcommittee on Committees of the Committee on Rules and 
17.30 	Administration of the senate; and
17.31 	(2) three members of the house of representatives, two appointed by the speaker of 
17.32 	the house and one appointed by the minority leader.
18.1 	The appointing authorities must select members based on knowledge and experience in 
18.2 	aviation funding issues. All appointments required by this paragraph must be completed 
18.3 	by September 1, 2007.
18.4 	(b) The chair of the task force may appoint additional nonvoting members to the task 
18.5 	force, including, but not limited to, representatives of the following organizations:
18.6 	(1) the Department of Transportation Aeronautics Office;
18.7 	(2) the Aircraft Owners and Pilots Association;
18.8 	(3) the Experimental Aircraft Association/ACAA;
18.9 	(4) the Metropolitan Airports Commission;
18.10 	(5) the Minnesota Aviation Trades Association;
18.11 	(6) the Minnesota Business Aviation Association;
18.12 	(7) the Minnesota Council of Airports;
18.13 	(8) the Minnesota Seaplane Pilots Association; 
18.14 	(9) the National Business Aviation Association; and 
18.15 	(10) the Minnesota Wing, Civil Air Patrol.
18.16 	(c) The director of the aeronautics office in the Department of Transportation shall 
18.17 	convene the first meeting of the task force within two weeks after the legislative members 
18.18 	have been appointed to the task force. The members shall elect a chairperson from their 
18.19 	membership at the first meeting.
18.20 		Subd. 3.Report. By February 15, 2008, the task force shall report its 
18.21 	recommendations to the chairs of the legislative committees with jurisdiction over airports 
18.22 	and aviation issues and to the legislature as required by Minnesota Statutes, section 3.195. 
18.23 		Subd. 4.Expenses. Per diem and expenses for members of the task force are as 
18.24 	provided for under Minnesota Statutes, section 15.059.
18.25 		Subd. 5.Expiration. This section expires after the submission of the report as 
18.26 	required under subdivision 3.

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

18.28 	Sec. 11. HIGHWAY CONSTRUCTION IN ROCHESTER.
 18.29 	The commissioner of transportation shall proceed without delay to issue to the city 
18.30 	of Rochester the necessary permits that allow the city to complete the construction of a 
18.31 	new folded diamond interchange in the Northeast and Northwest quadrants at marked 
18.32 	Trunk Highway 52 and 65th Street NW in the city of Rochester. The commissioner shall 
18.33 	review the environmental documentation prepared by the city in a timely manner and shall 
19.1 	issue the necessary construction permits without delay upon the issuance of a finding of 
19.2 	no significant impact. The cost of the interchange design, right-of-way acquisition, and 
19.3 	construction shall be the responsibility of the city of Rochester.

19.4 	Sec. 12. FEDERAL FUNDS SPENDING AUTHORITY.
 19.5 	The commissioner of transportation may spend up to $5,000,000 from July 1, 2008, 
19.6 	through June 30, 2013, in federal transit funds for capital assistance to public transit 
19.7 	systems under Minnesota Statutes, section 174.24. This amount is in addition to any 
19.8 	appropriations made by law for this purpose.

19.9 	Sec. 13. COUNTY ROAD 3 OVERPASS TASK FORCE.
 19.10 		Subdivision 1.Task force established. The County Road 3 Overpass Task Force 
19.11 	is established to plan the design, construction, and funding for a Scott County Road 3 
19.12 	overpass over Trunk Highway 169.
19.13 		Subd. 2.Task force membership. The task force is comprised of the following 
19.14 	members:
19.15 	(1) the commissioner of transportation or a designee;
19.16 	(2) the mayor of Belle Plaine or a designee;
19.17 	(3) a Scott County commissioner; and
19.18 	(4) owners of property in the vicinity of the intersection, who may be assessed for 
19.19 	the cost of the overpass, and who shall be appointed by the Scott County commissioner.
19.20 		Subd. 3.Task force determinations. The task force shall determine:
19.21 	(1) the preferred type of overpass or interchange needed at the Trunk Highway 169 
19.22 	intersection with County Road 3;
19.23 	(2) the schedule for beginning construction of the overpass or interchange; and
19.24 	(3) an appropriate cost-sharing agreement involving the state, Scott County, the city 
19.25 	of Belle Plaine, and private developers.
19.26 	The task force shall submit its determinations to the appropriate lead agency, which 
19.27 	shall prepare construction plans consistent with task force determinations.
19.28 		Subd. 4.Traffic control. The commissioner of transportation shall maintain traffic 
19.29 	control signals at the intersection of Trunk Highway 169 and Scott County Road 3, within 
19.30 	the city of Belle Plaine, to allow for the movement of cross-traffic, until construction is 
19.31 	commenced for a Scott County Road 3 overpass bridge over Trunk Highway 169.

20.1 	ARTICLE 2
20.2 	FUEL TAX

20.3 	Section 1. Minnesota Statutes 2006, section 296A.07, subdivision 3, is amended to 
20.4 	read:
20.5 		Subd. 3.Rate of tax. The gasoline excise tax is imposed at the following rates:
20.6 	(1) E85 is taxed at the rate of 14.2 21.3 cents per gallon;
20.7 	(2) M85 is taxed at the rate of 11.4 17.1 cents per gallon; and
20.8 	(3) all other gasoline is taxed at the rate of 20 30 cents per gallon.

20.9 	EFFECTIVE DATE. This section is effective July 1, 2007, and applies to all 
20.10 	gasoline, undyed diesel fuel, and special fuel in distributor storage on July 1, 2007.

20.11 	Sec. 2. Minnesota Statutes 2006, section 296A.08, subdivision 2, is amended to read:
20.12 		Subd. 2.Rate of tax. The special fuel excise tax is imposed at the following rates:
20.13 	(a) Liquefied petroleum gas or propane is taxed at the rate of 15 22.5 cents per gallon.
20.14 	(b) Liquefied natural gas is taxed at the rate of 12 18 cents per gallon.
20.15 	(c) Compressed natural gas is taxed at the rate of $1.739$2.609 per thousand cubic 
20.16 	feet; or 20 30 cents per gasoline equivalent, as defined by the National Conference on 
20.17 	Weights and Measures, which is 5.66 pounds of natural gas. 
20.18 	(d) All other special fuel is taxed at the same rate as the gasoline excise tax as 
20.19 	specified in section 296A.07, subdivision 2. The tax is payable in the form and manner 
20.20 	prescribed by the commissioner. 

20.21 	EFFECTIVE DATE. This section is effective July 1, 2007, and applies to all 
20.22 	gasoline, undyed diesel fuel, and special fuel in distributor storage on July 1, 2007.

20.23 	Sec. 3. [296A.081] ANNUAL ADJUSTMENT OF FUEL TAXES.
20.24 	(a) On April 1, 2009, and each April 1 thereafter, the commissioner of revenue 
20.25 	shall recompute and publish the rate of each fuel tax provided for in sections 296A.07, 
20.26 	subdivision 3, and 296A.08, subdivision 2. The new rate for each fuel tax must be 
20.27 	calculated by multiplying the rate in effect at the time of the calculation by an amount 
20.28 	obtained under paragraph (b). The new rate must be rounded to the nearest 0.1 cent and is 
20.29 	effective on June 1 of each year.
20.30 	(b) Divide the annual average United States Consumer Price Index for all urban 
20.31 	consumers, United States city average, as determined by the United States Department of 
20.32 	Labor for the previous year by that annual average for the year before the previous year.

21.1 	EFFECTIVE DATE. This section is effective April 1, 2009.

21.2 	ARTICLE 3
21.3 	VEHICLE REGISTRATION TAX

21.4 	Section 1. Minnesota Statutes 2006, section 168.013, subdivision 1a, is amended to 
21.5 	read:
21.6 		Subd. 1a.Passenger automobile; hearse. (a) On passenger automobiles as defined 
21.7 	in section  168.011, subdivision 7, and hearses, except as otherwise provided, the tax shall 
21.8 	be $10 plus an additional tax equal to  1.25 percent of the base value. 
21.9 	(b) Subject to the classification provisions herein, "base value" means the 
21.10 	manufacturer's suggested retail price of the vehicle including destination charge using list 
21.11 	price information published by the manufacturer or determined by the registrar if no 
21.12 	suggested retail price exists, and shall not include the cost of each accessory or item of 
21.13 	optional equipment separately added to the vehicle and the suggested retail price.
21.14 	(c) If the manufacturer's list price information contains a single vehicle identification 
21.15 	number followed by various descriptions and suggested retail prices, the registrar shall 
21.16 	select from those listings only the lowest price for determining base value.
21.17 	(d)  If unable to determine the base value because the vehicle is specially constructed, 
21.18 	or for any other reason, the registrar may establish such value upon the cost price to the 
21.19 	purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales 
21.20 	or use tax or any local sales or other local tax.
21.21 	(e) The registrar shall classify every vehicle in its proper base value class as follows:

21.22		FROM
		TO
	
21.23		$ ........0 
		$ ........199.99 
	
21.24		200
		399.99
	
21.25 	and thereafter a series of classes successively set in brackets having a spread of $200 
21.26 	consisting of such number of classes as will permit classification of all vehicles.
21.27 	(f) The base value for purposes of this section shall be the middle point between 
21.28 	the extremes of its class.
21.29 	(g) The registrar shall establish the base value, when new, of every passenger 
21.30 	automobile and hearse registered prior to the effective date of Extra Session Laws 1971, 
21.31 	chapter 31, using list price information published by the manufacturer or any nationally 
21.32 	recognized firm or association compiling such data for the automotive industry. If unable 
21.33 	to ascertain the base value of any registered vehicle in the foregoing manner, the registrar 
21.34 	may use any other available source or method. The registrar shall calculate tax using base 
21.35 	value information available to dealers and deputy registrars at the time the application for 
22.1 	registration is submitted. The tax on all previously registered vehicles shall be computed 
22.2 	upon the base value thus determined taking into account the depreciation provisions of 
22.3 	paragraph (h).
22.4 	(h) The annual additional tax computed upon the base value as provided herein, 
22.5 	during the first and second years year of vehicle life shall be computed upon 100 percent 
22.6 	of the base value; for the second year, 80 percent of such value; for the third and fourth 
22.7 	years year, 90 70 percent of such value; for the fourth year, 60 percent of such value; for 
22.8 	the fifth and sixth years year, 75 50 percent of such value; for the sixth year, 40 percent 
22.9 	of such value; for the seventh year, 60 35 percent of such value; for the eighth year, 40
22.10 	30 percent of such value; for the ninth year, 30 20 percent of such value; for the tenth year, 
22.11 	ten percent of such value; for the 11th and each succeeding year, the sum of $25.
22.12 	In  no event shall the annual additional tax be less than $25. The total tax under this 
22.13 	subdivision shall not exceed $189 for the first renewal period and shall not exceed $99 
22.14 	for subsequent renewal periods. The total tax under this subdivision on any vehicle filing 
22.15 	its initial registration in Minnesota in the second year of vehicle life shall not exceed 
22.16 	$189 and shall not exceed $99 for subsequent renewal periods. The total tax under 
22.17 	this subdivision on any vehicle filing its initial registration in Minnesota in the third or 
22.18 	subsequent year of vehicle life shall not exceed $99 and shall not exceed $99 in any 
22.19 	subsequent renewal period The annual additional tax under this paragraph must not exceed 
22.20 	the annual additional tax that was previously paid or due on that vehicle.
22.21 	(i) As used in this subdivision and section  168.017, the following terms have the 
22.22 	meanings given: "initial registration" means the 12 consecutive months calendar period 
22.23 	from the day of first registration of a vehicle in Minnesota; and "renewal periods" means 
22.24 	the 12 consecutive calendar months periods following the initial registration period. 

22.25 	Sec. 2. Minnesota Statutes 2006, section 168.017, subdivision 3, is amended to read:
22.26 		Subd. 3.Exceptions. (a) The registrar shall register all vehicles subject to 
22.27 	registration under the monthly series system for a period of 12 consecutive calendar 
22.28 	months, unless:
22.29 	(1) the application is an original rather than renewal application; or
22.30 	(2) the applicant is a licensed motor vehicle lessor under section 168.27, in which 
22.31 	case the applicant may apply for initial or renewed registration of a vehicle for a period 
22.32 	of four or more months, the month of expiration to be designated by the applicant at the 
22.33 	time of registration. However, to qualify for this exemption, the applicant must present 
22.34 	the application to the registrar at St. Paul, or at deputy registrar offices as the registrar 
22.35 	may designate. 
23.1 	(b) In any instance except that of a licensed motor vehicle lessor, the registrar shall 
23.2 	not approve registering the vehicle subject to the application for a period of less than three 
23.3 	months, except when the registrar determines that to do otherwise will help to equalize 
23.4 	the registration and renewal work load of the department.
23.5 	(c) As used in this subdivision, the following terms have the meanings given:
23.6 	(1) "initial registration" means the 12 consecutive calendar months period from the 
23.7 	day of first registration of a vehicle in Minnesota; and
23.8 	(2) "renewal periods" means the 12 consecutive calendar months periods following 
23.9 	the initial registration period.

23.10 	ARTICLE 4
23.11 	LOCAL SALES TAX

23.12 	Section 1. Minnesota Statutes 2006, section 161.04, is amended by adding a 
23.13 	subdivision to read:
23.14 		Subd. 5.Highway spending in metropolitan transportation district. In any year 
23.15 	during which taxes authorized in section 297A.992, subdivision 3, are imposed, and 
23.16 	exclusive of the expenditure of these revenues, the percentage of total trunk highway fund 
23.17 	expenditures attributable to projects in the metropolitan transportation area, within the 
23.18 	meaning of section 297A.992, subdivision 1, must exceed two percentage points less than 
23.19 	the average of the previous five years of trunk highway fund metropolitan transportation 
23.20 	area expenditures.

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

23.22 	Sec. 2. Minnesota Statutes 2006, section 297A.94, is amended to read:
23.23 	297A.94 DEPOSIT OF REVENUES.
23.24 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
23.25 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
23.26 	treasury and credit them to the general fund.
23.27 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
23.28 	account in the special revenue fund if:
23.29 	(1) the taxes are derived from sales and use of property and services purchased for 
23.30 	the construction and operation of an agricultural resource project; and
23.31 	(2) the purchase was made on or after the date on which a conditional commitment 
23.32 	was made for a loan guaranty for the project under section 41A.04, subdivision 3. 
24.1 	The commissioner of finance shall certify to the commissioner the date on which the 
24.2 	project received the conditional commitment. The amount deposited in the loan guaranty 
24.3 	account must be reduced by any refunds and by the costs incurred by the Department of 
24.4 	Revenue to administer and enforce the assessment and collection of the taxes.
24.5 	(c) The commissioner shall deposit the revenues, including interest and penalties, 
24.6 	derived from the taxes imposed on sales and purchases included in section 297A.61, 
24.7 	subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them 
24.8 	as follows: 
24.9 	(1) first to the general obligation special tax bond debt service account in each fiscal 
24.10 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and 
24.11 	(2) after the requirements of clause (1) have been met, the balance to the general 
24.12 	fund.
24.13 	(d) The commissioner shall deposit the revenues, including interest and penalties, 
24.14 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
24.15 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
24.16 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
24.17 	subdivision 5, for the previous calendar year. 
24.18 	(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and 
24.19 	for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and 
24.20 	penalties, transmitted to the commissioner under section 297A.65, must be deposited by 
24.21 	the commissioner in the state treasury as follows: 
24.22 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account 
24.23 	in the game and fish fund, and may be spent only on activities that improve, enhance, or 
24.24 	protect fish and wildlife resources, including conservation, restoration, and enhancement 
24.25 	of land, water, and other natural resources of the state;
24.26 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
24.27 	may be spent only for state parks and trails;
24.28 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
24.29 	may be spent only on metropolitan park and trail grants;
24.30 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
24.31 	may be spent only on local trail grants; and
24.32 	(5) two percent of the receipts must be deposited in the natural resources fund, 
24.33 	and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and 
24.34 	Conservatory, and the Duluth Zoo.
24.35 	(f) The revenue dedicated under paragraph (e) may not be used as a substitute 
24.36 	for traditional sources of funding for the purposes specified, but the dedicated revenue 
25.1 	shall supplement traditional sources of funding for those purposes. Land acquired with 
25.2 	money deposited in the game and fish fund under paragraph (e) must be open to public 
25.3 	hunting and fishing during the open season, except that in aquatic management areas or 
25.4 	on lands where angling easements have been acquired, fishing may be prohibited during 
25.5 	certain times of the year and hunting may be prohibited. At least 87 percent of the money 
25.6 	deposited in the game and fish fund for improvement, enhancement, or protection of fish 
25.7 	and wildlife resources under paragraph (e) must be allocated for field operations.
25.8 	(g) The revenues, including interest and penalties, collected under section 297A.992 
25.9 	must be deposited by the commissioner as provided for in that section.

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

25.11 	Sec. 3. [297A.992] LOCAL TRANSPORTATION SALES AND EXCISE TAXES.
25.12 		Subdivision 1.Definitions. For purposes of this section, "metropolitan 
25.13 	transportation area" means the area included within the counties of Anoka, Carver, Dakota, 
25.14 	Hennepin, Ramsey, Scott, and Washington, and "county" means each of those counties, as 
25.15 	well as any county that joins the joint powers board under subdivision 5.
25.16 		Subd. 2.Imposition of tax. A transportation sales tax is imposed at a rate of 
25.17 	one-half of one percent on retail sales and uses taxable under chapter 297A, and an excise 
25.18 	tax is imposed on the sale of new motor vehicles at the rate of $20 per vehicle, occurring 
25.19 	within the metropolitan transportation area, effective for sales and uses after June 30, 2007. 
25.20 		Subd. 3.Joint powers agreement. The counties in the metropolitan transportation 
25.21 	area shall enter into a joint powers agreement to create a joint powers board to exercise the 
25.22 	powers provided in this section.
25.23 		Subd. 4.Joint powers board. (a) The joint powers board must consist of one 
25.24 	representative of each county specified in subdivision 1, appointed by its county board, 
25.25 	and one elected city or town official from each county. The city or town representative 
25.26 	must be designated by representatives of statutory and home rule charter cities and towns 
25.27 	located in the county, at a meeting convened by the mayor of the city with the largest 
25.28 	population in the county. The joint powers board has the powers and duties provided in 
25.29 	this section and in section 471.59.
25.30 	(b) The decisions of the joint powers board shall be made by means of a weighted 
25.31 	voting system, with a total of 100 percent of voting authority, as follows:
25.32 	(1) the representatives of each county and each city or town shall each have a vote 
25.33 	weighted at 2.5 percent; and
25.34 	(2) the remaining voting authority shall be distributed among the counties in 
25.35 	proportion to the amount of tax proceeds from the taxes imposed in subdivision 1 that are 
26.1 	derived from sales and uses in that county, and then divided equally between the county 
26.2 	representative and the city or town representative from that county.
26.3 	(c) The determination of the distributions under paragraph (b), clause (2), shall 
26.4 	be made as follows. By June 30, 2007, the commissioner of revenue shall estimate the 
26.5 	amount of taxes that have been collected under chapter 297A during the 24-month period 
26.6 	ending March 31, 2007, from each of those counties, plus the amount that would have 
26.7 	been collected in each of those counties if a tax at a rate of $20 per vehicle had been 
26.8 	imposed on sales of new motor vehicles within the county, and shall determine for each 
26.9 	county its relative share of the total amount collected for all counties. The county shares 
26.10 	shall remain in effect for a period of three years, or until an additional county elects to join 
26.11 	the joint powers board, at which time the commissioner of revenue must recompute the 
26.12 	county shares, using the most recently available and verifiable information for a 24-month 
26.13 	period ending three months prior to the recomputation. The joint powers board shall 
26.14 	maximize the availability and use of federal funds in projects funded under this section.
26.15 		Subd. 5.Option for contiguous counties. A joint powers agreement must provide 
26.16 	a process and timeline to allow a county that is contiguous to any of the counties listed in 
26.17 	subdivision 1, by resolution of its county board, to impose a tax on the same terms as the 
26.18 	tax in subdivision 2 within its jurisdiction and to join the joint powers board.
26.19 		Subd. 6.Metropolitan transportation area fund. A metropolitan transportation 
26.20 	area fund is created in the state treasury. After the deductions allowed in section 297A.99, 
26.21 	subdivision 11, the commissioner of revenue shall deposit in the fund all revenue from 
26.22 	taxes imposed under this section. Money in the fund is appropriated to the commissioner 
26.23 	of finance. The commissioner of finance shall allocate money in the fund as directed by 
26.24 	resolution of the joint powers board under subdivision 7.
26.25 		Subd. 7.Use of sales tax revenue. By May 1 of each year, the joint powers 
26.26 	board shall, by resolution, direct the commissioner of finance to allocate revenue in the 
26.27 	metropolitan transportation area fund for the next fiscal year according to the provisions 
26.28 	of the resolution. Revenue must be allocated first to the joint powers board to reimburse 
26.29 	its expenses in carrying out the requirements of this section. Remaining funds must be 
26.30 	allocated:
26.31 	(1) seventy-five percent for planning, capital, and operating costs of transit. The 
26.32 	joint powers board shall fund, from the transit allocation, studies and environmental work 
26.33 	relating to potential transit in the following corridors:
26.34 	(i) marked Interstate Highway 94 between the Union Depot Concourse Multimodal 
26.35 	Transit Hub, located in downtown St. Paul south of Kellogg Boulevard and east of 
26.36 	Jackson Street, to the Minnesota-Wisconsin border;
27.1 	(ii) Rush Line Corridor along marked Interstate Highway 35E/Interstate Highway 
27.2 	35 and marked Trunk Highway 61, between the Union Depot Concourse Multimodal 
27.3 	Transit Hub in St. Paul, to Hinckley;
27.4 	(iii) Red Rock Corridor between Hastings and Minneapolis via the Union Depot 
27.5 	Concourse Multimodal Transit Hub in St. Paul;
27.6 	(iv) Southwest Transitway Corridor to connect with Hiawatha light rail in downtown 
27.7 	Minneapolis to the vicinity of the Southwest Station Transit Hub in Eden Prairie;
27.8 	(v) marked Interstate Highway 494 from Maple Grove to a transit station on the 
27.9 	Southwest Transitway and continuing to its intersection with marked Interstate Highway 
27.10 	94;
27.11 	(vi) marked Interstate Highway 394 or marked Trunk Highway 55, from downtown 
27.12 	Minneapolis to Ridgedale Drive in Minnetonka; 
27.13 	(vii) marked Interstate Highway 35W/35 from downtown Minneapolis to County 
27.14 	Road 50 in Lakeville; and
27.15 	(viii) Robert Street Corridor between the Union Depot Concourse Multimodal 
27.16 	Transit Hub in St. Paul and County Road 42 in Rosemount;
27.17 	(2) twenty percent for construction, maintenance, and improvement of trunk 
27.18 	highways and local roads located within the joint powers counties; and
27.19 	(3)  five percent to:
27.20 	(i) plan, design, build, maintain, promote, and operate bicycle programs and 
27.21 	pathways including, but not limited to, bicycle racks, bicycle lockers, off-road bicycle 
27.22 	paths, on-street bicycle striping, signage, lighting, and other projects with a primary focus 
27.23 	on bicycle transportation;
27.24 	(ii) plan, design, build, maintain, promote, and operate pedestrian programs within 
27.25 	the county including, but not limited to, sidewalks, paths, signage, lighting, and pedestrian 
27.26 	crossings with an emphasis on pedestrian transportation;
27.27 	(iii) plan, design, and provide transportation infrastructure associated with 
27.28 	transit-oriented development; and
27.29 	(iv) provide the local match for federal transportation grants for projects that 
27.30 	encourage transit use, bicycling, and walking under the federal Transportation 
27.31 	Enhancement, Congestion Mitigation and Air Quality, or Surface Transportation programs.
27.32 		Subd. 8.Grant process. (a) The joint powers board shall, by resolution, establish 
27.33 	a grant application and award process, which defines objective criteria for the award of 
27.34 	grants and awards grants only to public entities. Grants must be funded by the proceeds of 
27.35 	the sales tax, or bonds or other obligations issued by the joint powers board.
28.1 	(b) Grant applications must be submitted on forms prescribed by the joint powers 
28.2 	board. An applicant must provide the following information, in addition to all other 
28.3 	information required by the joint powers board:
28.4 	(1) the estimated cost of the project and the amount of the grant sought;
28.5 	(2) possible sources of funding in addition to the grant sought; and
28.6 	(3) an identification of any federal funds that will be utilized if the grant is awarded.
28.7 		Subd. 9.Tax in counties outside metropolitan transportation area.
 28.8 	Notwithstanding sections 297A.99, subdivisions 1, 2, 3, 5, and 13; 477A.016; or any 
28.9 	other law, the board of any county, or the boards of two or more counties outside the 
28.10 	metropolitan transportation area acting under a joint powers agreement may impose a 
28.11 	transportation sales tax at a rate of one-half of one percent on retail sales and uses taxable 
28.12 	under chapter 297A occurring within the jurisdiction of the taxing authority subject to 
28.13 	approval by the voters of the county or counties at a general election. The proceeds of the 
28.14 	tax must be dedicated exclusively to transportation projects.
28.15 		Subd. 10.Administration, collection, enforcement. The administration, 
28.16 	collection, and enforcement provisions in section 297A.99, subdivisions 4 and 6 to 12, 
28.17 	apply to all taxes imposed under this section.

28.18 	ARTICLE 5
28.19 	COUNTY WHEELAGE TAX

28.20 	Section 1. Minnesota Statutes 2006, section 163.051, is amended to read:
28.21 	163.051 METROPOLITAN COUNTY WHEELAGE TAX.
28.22 		Subdivision 1.Tax authorized. The board of commissioners of each metropolitan
28.23 	county is authorized to levy by resolution a wheelage tax of $5 for the year 1972 and 
28.24 	each subsequent year thereafter by resolution  $20 each year on each motor vehicle, 
28.25 	except motorcycles as defined in section 169.01, subdivision 4, which is kept in such 
28.26 	county when not in operation and which isthat is domiciled in the county and subject to 
28.27 	annual registration and taxation under chapter 168. The board may provide by resolution 
28.28 	for collection of the wheelage tax by county officials or it may request that the tax be 
28.29 	collected by the state registrar of motor vehicles, and the state registrar of motor vehicles
28.30 	shall collect such the tax on behalf of the county if requested, as provided in subdivision 2
28.31 	provided in the board resolution. 
28.32 		Subd. 2.Collection by registrar of motor vehicles. The wheelage tax levied by 
28.33 	any metropolitan county, if made collectible by the state registrar of motor vehicles, shall 
28.34 	be certified by the county auditor to the registrar not later than August 1 in the year before 
28.35 	the a calendar year or years for which the tax is levied, and the registrar shall collect such
29.1 	the tax with the motor vehicle taxes registration tax on the each  affected vehicles vehicle 
29.2 	for such that  year or years. EveryAn owner and every operator of such a motor vehicle 
29.3 	subject to the wheelage tax shall furnish to the registrar all information requested by the 
29.4 	registrar relating to the wheelage tax. No state motor A vehicle registration tax on any 
29.5 	such motor vehicle for any such year shall may not  be received or deemed paid unless the 
29.6 	applicable wheelage tax is paid therewith. The proceeds of the wheelage tax levied by any 
29.7 	metropolitan county, less any amount retained by the registrar to pay costs of collection of 
29.8 	the wheelage tax, shall be paid to the commissioner of finance and deposited in the state 
29.9 	treasury to the credit of the county wheelage tax fund of each metropolitan county.
29.10 		Subd. 2a.Tax proceeds deposited; costs of collection; appropriation.
 29.11 	Notwithstanding the provisions of any other law, the state registrar of motor vehicles shall 
29.12 	deposit the proceeds of the wheelage tax imposed by subdivision 2, to the credit of the 
29.13 	county wheelage tax road and bridge  fund of each metropolitan county that levies the 
29.14 	wheelage tax. The amount necessary to pay the costs of collection of said collecting the 
29.15 	tax is appropriated to the registrar from the county wheelage tax road and bridge  fund of 
29.16 	each metropolitan county to the state registrar of motor vehicles that levies the tax.
29.17 		Subd. 3.Distribution to metropolitan county; appropriation. On or before April 
29.18 	1 in 1972 and each subsequent year, the commissioner of finance shall issue a warrant in 
29.19 	favor of the treasurer of each metropolitan county for which the registrar has collected a 
29.20 	wheelage tax in the amount of such tax then on hand in the county wheelage tax fund. 
29.21 	There is hereby appropriated from the county wheelage tax fund each year, to each 
29.22 	metropolitan county entitled to payments authorized by this section, sufficient moneys 
29.23 	to make such payments.
29.24 		Subd. 4.Use of tax. The treasurer of each metropolitan county receiving moneys 
29.25 	under subdivision 3 shall deposit such moneys in the county road and bridge fund. The 
29.26 	moneys shall be used for purposes authorized by law which are highway purposes within 
29.27 	the meaning of the Minnesota Constitution, article 14.
29.28 		Subd. 5.Effect on road and bridge levy. The county auditor of each metropolitan 
29.29 	county shall reduce the amount of the property taxes levied pursuant to law in 1973 for 
29.30 	collection in 1974, by the board of commissioners of such county for the county road 
29.31 	and bridge fund, by the following amount: Anoka County, $341,750; Carver County, 
29.32 	$86,725; Dakota County, $386,165; Hennepin County, $2,728,425; Ramsey County, 
29.33 	$1,276,815; Scott County, $104,805; Washington County, $227,220, and shall spread only 
29.34 	the balance thereof on the tax rolls for collection in 1972. The county auditor shall also 
29.35 	reduce the amount of such taxes levied pursuant to law in 1972 and any subsequent year, 
30.1 	for collection in the respective ensuing years, by the amount of wheelage taxes received 
30.2 	by the county in the 12 months immediately preceding such levy.
30.3 		Subd. 6.Metropolitan county defined. "Metropolitan county" means any of the 
30.4 	counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
30.5 		Subd. 7.Offenses; penalties; application of other laws. Any owner or operator 
30.6 	of a motor vehicle who shall willfully give any gives false information relative to the 
30.7 	wheelage tax herein authorized to the registrar of motor vehicles or any metropolitan
30.8 	county, or who shall willfully fail fails or refuse refuses  to furnish any such information, 
30.9 	shall be is guilty of a misdemeanor. Except as otherwise herein provided in this section,
30.10 	the collection and payment of a wheelage tax and all related matters relating thereto shall 
30.11 	beare subject to all provisions of law laws relating to collection and payment of motor 
30.12 	vehicle taxes so far as applicable.

30.13 	Sec. 2. Minnesota Statutes 2006, section 168.011, subdivision 6, is amended to read:
30.14 		Subd. 6.Tax. "Tax" means the annual registration tax imposed on vehicles in lieu 
30.15 	of all other taxes, except wheelage taxes which may be imposed by any city or county, 
30.16 	and gross earnings taxes paid by companies. The annual tax is both a property tax and a 
30.17 	highway use tax and shall be on the basis of the calendar year.

30.18 	Sec. 3. Minnesota Statutes 2006, section 168.013, subdivision 1, is amended to read:
30.19 		Subdivision 1.Imposition. Motor vehicles, except as set forth in section  168.012, 
30.20 	using the public streets or highways in the state, and park trailers taxed under subdivision 
30.21 	1j, shall be taxed in lieu of all other taxes thereon, except wheelage taxes, so-called, which 
30.22 	may be imposed by any city or county as provided by law, and except gross earnings 
30.23 	taxes paid by companies subject or made subject thereto, and shall be privileged to 
30.24 	use the public streets and highways, on the basis and at the rate for each calendar year 
30.25 	as hereinafter provided. 

30.26 	ARTICLE 6
30.27 	MOTOR VEHICLE SALES TAX, MOTOR VEHICLE LEASE SALES TAX

30.28 	Section 1. Minnesota Statutes 2006, section 16A.88, is amended to read:
30.29 	16A.88 TRANSIT FUNDS ASSISTANCE FUND.
30.30 		Subdivision 1.Transit assistance fund established. A transit assistance fund is 
30.31 	established within the state treasury. The fund receives money distributed under sections 
30.32 	297A.815, subdivision 3, and 297B.09, subdivision 1, and other money as specified by 
30.33 	law. Money in the fund must be allocated to the greater Minnesota transit account under 
31.1 	subdivision 1a and the metropolitan area transit account under subdivision 2 in the manner 
31.2 	specified in sections 297A.815, subdivision 3, and 297B.09, subdivision 1, and must be 
31.3 	used for transit purposes.
31.4 		Subd. 1a.Greater Minnesota transit fund account. The greater Minnesota transit 
31.5 	fund account is established within the transit assistance fund in the state treasury. Money 
31.6 	in the fund account is annually appropriated to the commissioner of transportation for 
31.7 	assistance to transit systems outside the metropolitan area under section 174.24. Beginning 
31.8 	in fiscal year 2003, The commissioner may use up to $400,000 each year $408,000 in 
31.9 	fiscal year 2008 and $416,000 in fiscal year 2009 and thereafter for administration of the 
31.10 	transit program. The commissioner shall use the fund account for transit operations as 
31.11 	provided in section 174.24 and related program administration. 
31.12 		Subd. 2.Metropolitan area transit fund account. The metropolitan area transit 
31.13 	fund account is established within the transit assistance fund in the state treasury. All 
31.14 	money in the fund account is annually appropriated to the Metropolitan Council for the 
31.15 	funding of transit systems within the metropolitan area under sections 473.384, 473.386,
31.16 	473.387, 473.388, and 473.405 to 473.449. 
31.17 		Subd. 3.Metropolitan area transit appropriation account. The metropolitan 
31.18 	area transit appropriation account is established within the general fund. Money in the 
31.19 	account is to be used for the funding of transit systems in the metropolitan area, subject to 
31.20 	legislative appropriation.

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

31.22 	Sec. 2. Minnesota Statutes 2006, section 297A.64, subdivision 2, is amended to read:
31.23 		Subd. 2.Fee imposed. A fee equal to threefive percent of the sales price is imposed 
31.24 	on leases or rentals of vehicles subject to the tax under subdivision 1. The lessor on the 
31.25 	invoice to the customer may designate the fee as "a fee imposed by the State of Minnesota 
31.26 	for the registration of rental cars."

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

31.28 	Sec. 3. Minnesota Statutes 2006, section 297A.70, subdivision 2, is amended to read:
31.29 		Subd. 2.Sales to government. (a) All sales, except those listed in paragraph (b), 
31.30 	to the following governments and political subdivisions, or to the listed agencies or 
31.31 	instrumentalities of governments and political subdivisions, are exempt:
31.32 	(1) the United States and its agencies and instrumentalities;
32.1 	(2) school districts, the University of Minnesota, state universities, community 
32.2 	colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts 
32.3 	Education, and an instrumentality of a political subdivision that is accredited as an 
32.4 	optional/special function school by the North Central Association of Colleges and Schools;
32.5 	(3) hospitals and nursing homes owned and operated by political subdivisions of 
32.6 	the state of tangible personal property and taxable services used at or by hospitals and 
32.7 	nursing homes;
32.8 	(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip 
32.9 	operations provided for in section 473.4051; 
32.10 	(5)(4) other states or political subdivisions of other states, if the sale would be 
32.11 	exempt from taxation if it occurred in that state; and
32.12 	(6)(5) sales to public libraries, public library systems, multicounty, multitype library 
32.13 	systems as defined in section 134.001, county law libraries under chapter 134A, state 
32.14 	agency libraries, the state library under section 480.09, and the Legislative Reference 
32.15 	Library. 
32.16 	(b) This exemption does not apply to the sales of the following products and services:
32.17 	(1) building, construction, or reconstruction materials purchased by a contractor 
32.18 	or a subcontractor as a part of a lump-sum contract or similar type of contract with a 
32.19 	guaranteed maximum price covering both labor and materials for use in the construction, 
32.20 	alteration, or repair of a building or facility;
32.21 	(2) construction materials purchased by tax exempt entities or their contractors to 
32.22 	be used in constructing buildings or facilities which will not be used principally by the 
32.23 	tax exempt entities;
32.24 	(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 5, 
32.25 	except for leases entered into by the United States or its agencies or instrumentalities; or 
32.26 	(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause 
32.27 	(2), and prepared food, candy, and soft drinks, except for lodging, prepared food, candy, 
32.28 	and soft drinks purchased directly by the United States or its agencies or instrumentalities. 
32.29 	(c) As used in this subdivision, "school districts" means public school entities and 
32.30 	districts of every kind and nature organized under the laws of the state of Minnesota, and 
32.31 	any instrumentality of a school district, as defined in section 471.59. 

32.32 	Sec. 4. Minnesota Statutes 2006, section 297A.71, is amended by adding a subdivision 
32.33 	to read:
32.34 		Subd. 40.Commuter rail and light rail; material, supplies, and equipment.
 32.35 	Materials and supplies used or consumed in, and equipment incorporated into, the 
33.1 	construction or improvement of a commuter rail transportation system operated under 
33.2 	sections 174.80 to 174.90 and a light rail transit system constructed and operated under 
33.3 	sections 473.3993 to 473.3997 and 473.4051, are exempt. This exemption includes 
33.4 	railroad cars and engines and related equipment.

33.5 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
33.6 	December 31, 2006.

33.7 	Sec. 5. Minnesota Statutes 2006, section 297A.815, subdivision 1, is amended to read:
33.8 		Subdivision 1.Motor vehicle lease price; payment. (a) In the case of a lease of 
33.9 	a motor vehicle as provided in section 297A.61, subdivision 4, paragraph (k), clause 
33.10 	(2), the tax is imposed on the total amount to be paid by the lessee under the lease 
33.11 	agreement, together with the document administration fee or documentary fee under 
33.12 	section 53C.01, subdivision 2. The lessor shall collect the tax in full at the time the lease 
33.13 	is executed or, if the tax is included in the lease and the lease is assigned, the tax is due 
33.14 	from the original lessor at the time the lease is assigned. The total amount to be paid by 
33.15 	the lessee under the lease agreement equals the agreed-upon value of the vehicle less 
33.16 	manufacturer's rebates, the stated residual value of the leased vehicle, and the total value 
33.17 	allowed for a vehicle owned by the lessee taken in trade by the lessor, plus the price of 
33.18 	any taxable goods and services included in the lease and the rent charge as provided by 
33.19 	Code of Federal Regulations, title 12, section 213.4, excluding any rent charge related 
33.20 	to the capitalization of the tax.
33.21 	(b) If the total amount paid by the lessee for use of the leased vehicle includes 
33.22 	amounts that are not calculated at the time the lease is executed, the tax is imposed and 
33.23 	must be collected by the lessor at the time the amounts are paid by the lessee. In the case 
33.24 	of a lease which by its terms may be renewed, the sales tax is due and payable on the 
33.25 	total amount to be paid during the initial term of the lease, and then for each subsequent 
33.26 	renewal period on the total amount to be paid during the renewal period.
33.27 	(c) If a lease is canceled or rescinded on or before 90 days of its execution or if a 
33.28 	vehicle is returned to the manufacturer under section 325F.665, the lessor may file a claim 
33.29 	for a refund of the total tax paid minus the amount of tax due for the period the vehicle is 
33.30 	used by the lessee.
33.31 	(d) If a lessee's obligation to make payments on a lease is canceled more than 90 
33.32 	days after its execution, a credit is allowed against sales tax or motor vehicles sales tax 
33.33 	due on a subsequent lease or purchase of a motor vehicle if that lease or purchase is 
33.34 	consummated within 30 days of the date the prior lease was canceled. The amount of the 
33.35 	credit is equal to (1) the sales tax paid at the inception of the lease, multiplied by (2) 
34.1 	the ratio of the number of full months remaining in the lease at the time of termination 
34.2 	compared to the term of the lease used in calculating sales tax paid at the inception of the 
34.3 	lease. The credit or any part of it cannot be assigned or transferred to another person.

34.4 	Sec. 6. Minnesota Statutes 2006, section 297A.815, is amended by adding a 
34.5 	subdivision to read:
34.6 		Subd. 3.Deposit of revenues. Notwithstanding any law to the contrary, money 
34.7 	collected and received under this section must be deposited as follows: 
34.8 	(1) From July 1, 2007, through June 30, 2008, 31.75 percent must be deposited in 
34.9 	the highway user tax distribution fund, and 32 percent must be deposited in the transit 
34.10 	assistance fund and allocated 24 percent to the metropolitan area transit account, and eight 
34.11 	percent to the greater Minnesota transit account. The remaining money must be deposited 
34.12 	in the general fund.
34.13 	(2) From July 1, 2008, through June 30, 2009, 36.75 percent must be deposited in 
34.14 	the highway user tax distribution fund, and 37 percent must be deposited in the transit 
34.15 	assistance fund and allocated 27.75 percent to the metropolitan area transit account, 
34.16 	and 9.25 percent to the greater Minnesota transit account. The remaining money must 
34.17 	be deposited in the general fund.
34.18 	(3) From July 1, 2009, through June 30, 2010, 41.75 percent must be deposited in 
34.19 	the highway user tax distribution fund, and 42 percent must be deposited in the transit 
34.20 	assistance fund and allocated 31.5 percent to the metropolitan area transit account, and 
34.21 	10.5 percent to the greater Minnesota transit account. The remaining money must be 
34.22 	deposited in the general fund.
34.23 	(4) From July 1, 2010, through June 30, 2011, 46.75 percent must be deposited in 
34.24 	the highway user tax distribution fund, and 47 percent must be deposited in the transit 
34.25 	assistance fund and allocated 35.25 percent to the metropolitan area transit account, and 
34.26 	11.75 percent to the greater Minnesota transit account. The remaining money must be 
34.27 	deposited in the general fund.
34.28 	(5) On and after July 1, 2011, 50 percent must be deposited in the highway user tax 
34.29 	distribution fund, and 50 percent must be deposited in the transit assistance fund and 
34.30 	allocated 37.5 percent to the metropolitan area transit account, and 12.5 percent to the 
34.31 	greater Minnesota transit account.

34.32 	Sec. 7. Minnesota Statutes 2006, section 297A.815, is amended by adding a 
34.33 	subdivision to read:
35.1 		Subd. 4.Reporting of tax proceeds. A lessor must report taxes collected under 
35.2 	this section separately from any other taxes collected and remitted under this chapter or 
35.3 	chapter 297B.

35.4 	Sec. 8. Minnesota Statutes 2006, section 297A.94, is amended to read:
35.5 	297A.94 DEPOSIT OF REVENUES.
35.6 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
35.7 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
35.8 	treasury and credit them to the general fund.
35.9 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
35.10 	account in the special revenue fund if:
35.11 	(1) the taxes are derived from sales and use of property and services purchased for 
35.12 	the construction and operation of an agricultural resource project; and
35.13 	(2) the purchase was made on or after the date on which a conditional commitment 
35.14 	was made for a loan guaranty for the project under section 41A.04, subdivision 3. 
35.15 	The commissioner of finance shall certify to the commissioner the date on which the 
35.16 	project received the conditional commitment. The amount deposited in the loan guaranty 
35.17 	account must be reduced by any refunds and by the costs incurred by the Department of 
35.18 	Revenue to administer and enforce the assessment and collection of the taxes.
35.19 	(c) The commissioner shall deposit the revenues, including interest and penalties, 
35.20 	derived from the taxes imposed on sales and purchases included in section 297A.61, 
35.21 	subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them 
35.22 	as follows: 
35.23 	(1) first to the general obligation special tax bond debt service account in each fiscal 
35.24 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and 
35.25 	(2) after the requirements of clause (1) have been met, the balance to the general 
35.26 	fund.
35.27 	(d) The commissioner shall deposit the revenues, including interest and penalties, 
35.28 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
35.29 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
35.30 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
35.31 	subdivision 5, for the previous calendar year. 
35.32 	(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and 
35.33 	for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and 
35.34 	penalties, transmitted to the commissioner under section 297A.65, must be deposited by 
35.35 	the commissioner in the state treasury as follows: 
36.1 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account 
36.2 	in the game and fish fund, and may be spent only on activities that improve, enhance, or 
36.3 	protect fish and wildlife resources, including conservation, restoration, and enhancement 
36.4 	of land, water, and other natural resources of the state;
36.5 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
36.6 	may be spent only for state parks and trails;
36.7 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
36.8 	may be spent only on metropolitan park and trail grants;
36.9 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
36.10 	may be spent only on local trail grants; and
36.11 	(5) two percent of the receipts must be deposited in the natural resources fund, 
36.12 	and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and 
36.13 	Conservatory, and the Duluth Zoo.
36.14 	(f) The revenue dedicated under paragraph (e) may not be used as a substitute 
36.15 	for traditional sources of funding for the purposes specified, but the dedicated revenue 
36.16 	shall supplement traditional sources of funding for those purposes. Land acquired with 
36.17 	money deposited in the game and fish fund under paragraph (e) must be open to public 
36.18 	hunting and fishing during the open season, except that in aquatic management areas or 
36.19 	on lands where angling easements have been acquired, fishing may be prohibited during 
36.20 	certain times of the year and hunting may be prohibited. At least 87 percent of the money 
36.21 	deposited in the game and fish fund for improvement, enhancement, or protection of fish 
36.22 	and wildlife resources under paragraph (e) must be allocated for field operations.
36.23 	(g) The revenues, including interest and penalties, collected under section 297A.815 
36.24 	must be deposited as provided in section 297A.815, subdivision 3.

36.25 	Sec. 9. Minnesota Statutes 2006, section 297B.01, subdivision 8, is amended to read:
36.26 		Subd. 8.Purchase price.  (a) "Purchase price" means the total consideration valued 
36.27 	in money for a sale, whether paid in money or otherwise. The purchase price excludes the 
36.28 	amount of a manufacturer's rebate paid or payable to the purchaser. If a motor vehicle 
36.29 	is taken in trade as a credit or as part payment on a motor vehicle taxable under this 
36.30 	chapter, the credit or trade-in value allowed by the person selling the motor vehicle shall 
36.31 	be deducted from the total selling price to establish the purchase price of the vehicle 
36.32 	being sold and the trade-in allowance allowed by the seller shall constitute the purchase 
36.33 	price of the motor vehicle accepted as a trade-in. The purchase price in those instances 
36.34 	where the motor vehicle is acquired by gift or by any other transfer for a nominal or no 
36.35 	monetary consideration shall also include the average value of similar motor vehicles, 
37.1 	established by standards and guides as determined by the motor vehicle registrar. The 
37.2 	purchase price in those instances where a motor vehicle is manufactured by a person who 
37.3 	registers it under the laws of this state shall mean the manufactured cost of such motor 
37.4 	vehicle and manufactured cost shall mean the amount expended for materials, labor, 
37.5 	and other properly allocable costs of manufacture, except that in the absence of actual 
37.6 	expenditures for the manufacture of a part or all of the motor vehicle, manufactured costs 
37.7 	shall mean the reasonable value of the completed motor vehicle.
37.8 	(b) The term "purchase price" shall not include the portion of the value of a motor 
37.9 	vehicle due solely to modifications necessary to make the motor vehicle disability 
37.10 	accessible. 
37.11 	(c) The term "purchase price" shall not include the transfer of a motor vehicle by 
37.12 	way of gift between a husband and wife or parent and child, or to a nonprofit organization 
37.13 	as provided under subdivision 7, paragraph (e), nor shall it include the transfer of a motor 
37.14 	vehicle by a guardian to a ward when there is no monetary consideration and the title to 
37.15 	such vehicle was registered in the name of the guardian, as guardian, only because the 
37.16 	ward was a minor. 
37.17 	(d) The term "purchase price" shall not include the transfer of a motor vehicle as a 
37.18 	gift between a foster parent and foster child. For purposes of this subdivision, a foster 
37.19 	relationship exists, regardless of the age of the child, if (1) a foster parent's home is or was 
37.20 	licensed as a foster family home under Minnesota Rules, parts 9545.0010 to 9545.0260, 
37.21 	and (2) the county verifies that the child was a state ward or in permanent foster care.
37.22 	(e) There shall not be included in "purchase price" the amount of any tax imposed by 
37.23 	the United States upon or with respect to retail sales whether imposed upon the retailer or 
37.24 	the consumer.
37.25 	(f) The document administration fee or documentary fee under section 53C.01, 
37.26 	subdivision 2, must be included in the purchase price.

37.27 	Sec. 10. Minnesota Statutes 2006, section 297B.09, subdivision 1, is amended to read:
37.28 		Subdivision 1.Deposit of revenues. (a) Money collected and received under this 
37.29 	chapter must be deposited as provided in this subdivision.
37.30 	(b) From July 1, 2002, to June 30, 2003, 32 percent of the money collected and 
37.31 	received must be deposited in the highway user tax distribution fund, 20.5 percent must be 
37.32 	deposited in the metropolitan area transit fund under section 16A.88, and 1.25 percent 
37.33 	must be deposited in the greater Minnesota transit fund under section 16A.88. The 
37.34 	remaining money must be deposited in the general fund. 
38.1 	(c) From July 1, 2003, to June 30, 2007, 30 percent of the money collected and 
38.2 	received must be deposited in the highway user tax distribution fund, 21.5 percent must be 
38.3 	deposited in the metropolitan area transit fund under section 16A.88, 1.43 percent must be 
38.4 	deposited in the greater Minnesota transit fund under section 16A.88, 0.65 percent must 
38.5 	be deposited in the county state-aid highway fund, and 0.17 percent must be deposited 
38.6 	in the municipal state-aid street fund. The remaining money must be deposited in the 
38.7 	general fund. 
38.8 	(d) On and after From July 1, 2007, 32through June 30, 2008, 38.25 percent of the 
38.9 	money collected and received must be deposited in the highway user tax distribution 
38.10 	fund, 20.523 percent must be deposited in the metropolitan area transit fund account
38.11 	under section 16A.88, and 1.252.5 percent must be deposited in the greater Minnesota 
38.12 	transit fund account under section 16A.88. The remaining money must be deposited 
38.13 	in the general fund. 
38.14 	(c) From July 1, 2008, through June 30, 2009, 44.25 percent of the money collected 
38.15 	and received must be deposited in the highway user tax distribution fund, 26.5 percent 
38.16 	must be deposited in the metropolitan area transit account under section 16A.88, three 
38.17 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
38.18 	and the remaining money must be deposited in the general fund.
38.19 	(d) From July 1, 2009, through June 30, 2010, 50.25 percent of the money collected 
38.20 	and received must be deposited in the highway user tax distribution fund, 30 percent must 
38.21 	be deposited in the metropolitan area transit account under section 16A.88, 3.5 percent 
38.22 	must be deposited in the greater Minnesota transit account under section 16A.88, and the 
38.23 	remaining money must be deposited in the general fund.
38.24 	(e) From July 1, 2010, through June 30, 2011, 56.25 percent of the money collected 
38.25 	and received must be deposited in the highway user tax distribution fund, 33.75 percent 
38.26 	must be deposited in the metropolitan area transit account under section 16A.88, 3.75 
38.27 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
38.28 	and the remaining money must be deposited in the general fund.
38.29 	(f) On and after July 1, 2011, 60 percent of the money collected and received must 
38.30 	be deposited in the highway user tax distribution fund, 36 percent must be deposited in 
38.31 	the metropolitan area transit account under section 16A.88, and four percent must be 
38.32 	deposited in the greater Minnesota transit account under section 16A.88.

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

38.34 	Sec. 11.  REPEALER.
 38.35 	Minnesota Statutes 2006, section 174.32, is repealed.

39.1 	Sec. 12. EFFECTIVE DATE.
 39.2 	Sections 3, 4, and 5, are effective beginning with revenues collected and remitted 
39.3 	beginning July 1, 2007.

39.4 	ARTICLE 7
39.5 	COUNTY STATE-AID FUND DISTRIBUTION

39.6 	Section 1. Minnesota Statutes 2006, section 162.07, subdivision 1, is amended to read:
39.7 		Subdivision 1.Formula Apportionment sum and excess sum. After deducting for 
39.8 	administrative costs and for the disaster account and research account and state park roads 
39.9 	as heretofore provided, the remainder of (a) The total sum provided for in section 162.06, 
39.10 	subdivision 1, shall be is identified as the apportionment sum and  the excess sum. shall be 
39.11 	apportioned by the commissioner to the several counties on the basis of the needs of the 
39.12 	counties as determined in accordance with the following formula: 
39.13 	(a) An amount equal to ten percent of the apportionment sum shall be apportioned 
39.14 	equally among the 87 counties.
39.15 	(b) An amount equal to ten percent of the apportionment sum shall be apportioned 
39.16 	among the several counties so that each county shall receive of such amount the 
39.17 	percentage that its motor vehicle registration for the calendar year preceding the one last 
39.18 	past, determined by residence of registrants, bears to the total statewide motor vehicle 
39.19 	registration.
39.20 	(c) An amount equal to 30 percent of the apportionment sum shall be apportioned 
39.21 	among the several counties so that each county shall receive of such amount the percentage 
39.22 	that its total lane-miles of approved county state-aid highways bears to the total lane-miles 
39.23 	of approved statewide county state-aid highways. In 1997 and subsequent years no county 
39.24 	may receive, as a result of an apportionment under this clause based on lane-miles rather 
39.25 	than miles of approved county state-aid highways, an apportionment that is less than its 
39.26 	apportionment in 1996.
39.27 	(d) An amount equal to 50 percent of the apportionment sum shall be apportioned 
39.28 	among the several counties so that each county shall receive of such amount the percentage 
39.29 	that its money needs bears to the sum of the money needs of all of the individual counties; 
39.30 	provided, that the percentage of such amount that each county is to receive shall be 
39.31 	adjusted so that each county shall receive in 1958 a total apportionment at least ten 
39.32 	percent greater than its total 1956 apportionments from the state road and bridge fund; 
39.33 	and provided further that those counties whose money needs are thus adjusted shall 
39.34 	never receive a percentage of the apportionment sum less than the percentage that such 
39.35 	county received in 1958.
40.1 	(b) The excess sum is the sum of: 
40.2 	(1) revenue attributed to that portion of the gasoline excise tax rate in excess of 20 
40.3 	cents per gallon, and to that portion of the excise tax rate for E85, M85, and special fuels 
40.4 	in excess of the energy equivalent of a gasoline tax rate of 20 cents per gallon;
40.5 	(2) revenue attributed to a change in the passenger vehicle registration tax under 
40.6 	section 168.013, imposed on or after July 1, 2007, that exceeds the amount collected in 
40.7 	fiscal year 2007 multiplied by the annual average United States Consumer Price Index 
40.8 	for all urban consumers, United States city average, as determined by the United States 
40.9 	Department of Labor for the previous year, divided by the annual average for calendar 
40.10 	year 2006; and
40.11 	(3) revenue to the county state-aid highway fund attributable to the motor vehicle 
40.12 	sales tax in excess of fiscal year 2007 revenue.
40.13 	(c) The apportionment sum is calculated by subtracting the excess sum from the 
40.14 	remainder of the total sum.

40.15 	Sec. 2. Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision 
40.16 	to read:
40.17 		Subd. 1a.Apportionment sum. (a) The commissioner shall reduce the 
40.18 	apportionment sum by the deductions for administrative costs, disaster account, research 
40.19 	account, and state park road account, and apportion the remainder among the several 
40.20 	counties on the basis of the needs of the counties as provided in paragraphs (b) to (e).
40.21 	(b) An amount equal to ten percent shall be apportioned equally among the 87 
40.22 	counties.
40.23 	(c) An amount equal to ten percent shall be apportioned among the several counties 
40.24 	so that each county shall receive of such amount the percentage that its motor vehicle 
40.25 	registration for the calendar year preceding the one last past, determined by residence of 
40.26 	registrants, bears to the total statewide motor vehicle registration.
40.27 	(d) An amount equal to 30 percent shall be apportioned among the several counties 
40.28 	so that each county shall receive of such amount the percentage that its total lane-miles of 
40.29 	approved county state-aid highways bears to the total lane-miles of approved statewide 
40.30 	county state-aid highways. In 1997 and subsequent years no county may receive, as a result 
40.31 	of an apportionment under this clause based on lane-miles rather than miles of approved 
40.32 	county state-aid highways, an apportionment that is less than its apportionment in 1996.
40.33 	(e) An amount equal to 50 percent shall be apportioned among the several counties 
40.34 	so that each county shall receive of such amount the percentage that its money needs 
40.35 	bears to the sum of the money needs of all of the individual counties provided, that the 
41.1 	percentage of the amount that each county is to receive shall be adjusted so that each 
41.2 	county shall receive in 1958 a total apportionment at least ten percent greater than its total 
41.3 	1956 apportionments from the state road and bridge fund; and provided further that those 
41.4 	counties whose money needs are thus adjusted shall never receive a percentage of the 
41.5 	apportionment sum less than the percentage that the county received in 1958.

41.6 	Sec. 3. Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision 
41.7 	to read:
41.8 		Subd. 1b.Excess sum. (a) The commissioner shall reduce the excess sum by the 
41.9 	deductions for administrative costs, disaster account, research account, and state park road 
41.10 	account, and apportion the remainder among the several counties on the basis of the needs 
41.11 	of the counties as provided in paragraphs (b) and (c).
41.12 	(b) An amount equal to 40 percent must be apportioned among the several counties 
41.13 	so that each county receives of that amount the percentage that its motor vehicle 
41.14 	registration for the calendar year preceding the one last past, determined by residence of 
41.15 	registrants, bears to the total statewide motor vehicle registration.
41.16 	(c) An amount equal to 60 percent must be apportioned among the several counties 
41.17 	so that each county receives of that amount the percentage that its money needs bears to 
41.18 	the sum of the money needs of all of the individual counties.

41.19 	ARTICLE 8
41.20 	DRIVER AND VEHICLE SERVICES FEES

41.21 	Section 1. Minnesota Statutes 2006, section 168.017, subdivision 3, is amended to read:
41.22 		Subd. 3.Exceptions. (a) The registrar shall register all vehicles subject to 
41.23 	registration under the monthly series system for a period of 12 consecutive calendar 
41.24 	months, unless:
41.25 	(1) the application is an original rather than renewal application; or
41.26 	(2) the applicant is a licensed motor vehicle lessor under section 168.27, in which 
41.27 	case the applicant may apply for initial or renewed registration of a vehicle for a period 
41.28 	of four or more months, the month of expiration to be designated by the applicant at the 
41.29 	time of registration. However, to qualify for this exemption, the applicant must pay a $10 
41.30 	administrative fee and present the application to the registrar at St. Paul, or ata designated 
41.31 	deputy registrar offices as the registrar may designate. office. At the end of the initial 
41.32 	registration period, the applicant may only renew the registration on the vehicle for the 
41.33 	remainder of the period prescribed under subdivision 1 had the applicant not utilized the 
41.34 	exception in this subdivision. Upon the renewal of registration, the applicant shall pay 
42.1 	1/12 of the annual tax for each calendar month remaining in the registration period in 
42.2 	addition to a $10 administrative fee. Nothing in this subdivision prohibits the applicant 
42.3 	from purchasing registration for an additional full registration period in conjunction with 
42.4 	the purchase of the remainder portion.
42.5 	(b) In any instance except that of a licensed motor vehicle lessor, the registrar shall 
42.6 	not approve registering the vehicle subject to the application for a period of less than three 
42.7 	months, except when the registrar determines that to do otherwise will help to equalize 
42.8 	the registration and renewal work load of the department.
42.9 	(c) The administrative fee collected under paragraph (a) must be deposited in the 
42.10 	vehicle services operating account in the special revenue fund as specified in section 
42.11 	299A.705.

42.12 	Sec. 2. Minnesota Statutes 2006, section 168.12, subdivision 5, is amended to read:
42.13 		Subd. 5.Additional fee. (a) In addition to any fee otherwise authorized or any tax 
42.14 	otherwise imposed upon any vehicle, the payment of which is required as a condition to 
42.15 	the issuance of any plate or plates, the commissioner shall impose the fee specified in 
42.16 	paragraph (b) that is calculated to cover the cost of manufacturing and issuing the plate 
42.17 	or plates, except for plates issued to disabled veterans as defined in section 168.031 and 
42.18 	plates issued pursuant to section 168.124, 168.125, or 168.27, subdivisions 16 and 17, 
42.19 	for passenger automobiles. The commissioner shall issue graphic design plates only 
42.20 	for vehicles registered pursuant to section 168.017 and recreational vehicles registered 
42.21 	pursuant to section 168.013, subdivision 1g.
42.22 	(b) Unless otherwise specified or exempted by statute, the following plate and 
42.23 	validation sticker fees apply for the original, duplicate, or replacement issuance of a 
42.24 	plate in a plate year:

42.25	Sequential Regular Double Plate
		$
	4.25
	
42.26	Sequential Special Plate-Double
		$
	7.00
	
42.27	Sequential Regular Single Plate
		$
	3.00
	
42.28	Sequential Special Plate-Single
		$
	5.50
	
42.29	Utility Trailer Self-Adhesive Plate
		$
	2.50
	
42.30	Nonsequential Double Plate
		$
	14.00
	
42.31	Nonsequential Single Plate
		$
	10.00
	
42.32	Duplicate Sticker
		$
	1.00

42.33	License Plate 
			Single
		Double
	
42.34		Regular and Disability
		$
	4.50
	$
	6.00
	
42.35		Special
		$
	8.50
	$
	10.00
	
42.36		Personalized (Replacement)
		$
	10.00
	$
	14.00
	
42.37		Collector Category
		$
	13.50
	$
	15.00
	
43.1		Emergency Vehicle Display
		$
	3.00
	$
	6.00
	
43.2		Utility Trailer Self-Adhesive
		$
	2.50
			
43.3	Stickers
						
43.4		Duplicate year
		$
	1.00
	$
	1.00
	
43.5
43.6		International Fuel Tax 
Agreement
		$
	2.50
			
43.7 	(c) For vehicles that require two of the categories above, the registrar shall only 
43.8 	charge the higher of the two fees and not a combined total.

43.9 	Sec. 3. Minnesota Statutes 2006, section 168A.29, subdivision 1, is amended to read:
43.10 		Subdivision 1.Amounts. (a) The department must be paid the following fees:
43.11 	(1) for filing an application for and the issuance of an original certificate of title, the 
43.12 	sum of $5.50$6.25 of which $2.50$3.25 must be paid into the vehicle services operating 
43.13 	account of the special revenue fund under section 299A.705;
43.14 	(2) for each security interest when first noted upon a certificate of title, including the 
43.15 	concurrent notation of any assignment thereof and its subsequent release or satisfaction, 
43.16 	the sum of $2, except that no fee is due for a security interest filed by a public authority 
43.17 	under section 168A.05, subdivision 8;
43.18 	(3) for the transfer of the interest of an owner and the issuance of a new certificate of 
43.19 	title, the sum of $5.50 of which $2.50 must be paid into the vehicle services operating 
43.20 	account of the special revenue fund under section 299A.705;
43.21 	(4) for each assignment of a security interest when first noted on a certificate of title, 
43.22 	unless noted concurrently with the security interest, the sum of $1;
43.23 	(5) for issuing a duplicate certificate of title, the sum of $6.50$7.25 of which $2.50
43.24 	$3.25 must be paid into the vehicle services operating account of the special revenue fund 
43.25 	under section 299A.705.
43.26 	(b) After June 30, 1994, in addition to each of the fees required under paragraph (a), 
43.27 	clauses (1) and (3), the department must be paid $3.50. The additional $3.50 fee collected 
43.28 	under this paragraph must be deposited in the special revenue fund and credited to the 
43.29 	public safety motor vehicle account established in section 299A.70.

43.30 	Sec. 4. Minnesota Statutes 2006, section 171.02, subdivision 3, is amended to read:
43.31 		Subd. 3.Motorized bicycle. (a) A motorized bicycle may not be operated on any 
43.32 	public roadway by any person who does not possess a valid driver's license, unless the 
43.33 	person has obtained a motorized bicycle operator's permit or motorized bicycle instruction 
43.34 	permit from the commissioner of public safety. The operator's permit may be issued to 
43.35 	any person who has attained the age of 15 years and who has passed the examination 
44.1 	prescribed by the commissioner. The instruction permit may be issued to any person who 
44.2 	has attained the age of 15 years and who has successfully completed an approved safety 
44.3 	course and passed the written portion of the examination prescribed by the commissioner.
44.4 	(b) This course must consist of, but is not limited to, a basic understanding of:
44.5 	(1) motorized bicycles and their limitations;
44.6 	(2) motorized bicycle laws and rules;
44.7 	(3) safe operating practices and basic operating techniques;
44.8 	(4) helmets and protective clothing;
44.9 	(5) motorized bicycle traffic strategies; and
44.10 	(6) effects of alcohol and drugs on motorized bicycle operators.
44.11 	(c) The commissioner may adopt rules prescribing the content of the safety course, 
44.12 	examination, and the information to be contained on the permits. A person operating a 
44.13 	motorized bicycle under a motorized bicycle permit is subject to the restrictions imposed 
44.14 	by section 169.974, subdivision 2, on operation of a motorcycle under a two-wheel 
44.15 	instruction permit.
44.16 	(d) The fees for motorized bicycle operator's permits are as follows:

44.17	(1)
	Examination and operator's permit, valid for one year
	$ 66.75
	
44.18	(2)
	Duplicate
	$ 33.75
	
44.19	(3)
	Renewal permit before age 21 and valid until age 21
	$ 99.75
	
44.20	(4)
	Renewal permit age 21 or older and valid for four years
	$1515.75
	
44.21	(5)
	Duplicate of any renewal permit
	$ 4.505.25
	
44.22
44.23	(6)
	Written examination and instruction permit, valid for 30 
days
	$ 66.75

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

44.27
44.28	Classified Driver's 
License
		D-$21.50
	C-$25.50
	B-$32.50
	A-$40.50
	
44.29	Classified Under -21 D.L.
		D-$21.50
	C-$25.50
	B-$32.50
	A-$20.50
	
44.30
44.31	Classified Driver's 
License
		D-$22.25
	C-$26.25
	B-$33.25
	A-$41.25
	
44.32	Classified Under-21 D.L.
		D-$22.25
	C-$26.25
	B-$33.25
	A-$21.25
	
44.33
44.34	Instruction Permit
					$9.50
$10.25
	
44.35
44.36	Provisional License
					$12.50
$13.25
	
44.37
44.38
44.39	Duplicate License or 
duplicate identification 
card
					$11.00
$11.75

45.1
45.2
45.3
45.4
45.5
45.6
45.7
45.8	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
	
45.9 	(b) Notwithstanding paragraph (a), an individual who holds a provisional license and 
45.10 	has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33, 
45.11 	169A.35, or sections 169A.50 to 169A.53, (2) convictions for crash-related moving 
45.12 	violations, and (3) convictions for moving violations that are not crash related, shall have a 
45.13 	$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation" 
45.14 	has the meaning given it in section 171.04, subdivision 1.
45.15 	(c) In addition to the driver's license fee required under paragraph (a), the 
45.16 	commissioner shall collect an additional $4 processing fee from each new applicant 
45.17 	or individual renewing a license with a school bus endorsement to cover the costs for 
45.18 	processing an applicant's initial and biennial physical examination certificate. The 
45.19 	department shall not charge these applicants any other fee to receive or renew the 
45.20 	endorsement.

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

45.30 	Sec. 7. Minnesota Statutes 2006, section 171.07, subdivision 11, is amended to read:
45.31 		Subd. 11.Standby or temporary custodian. (a) Upon the written request of the 
45.32 	applicant and upon payment of an additional fee of $3.50 $4.25, the department shall issue 
45.33 	a driver's license or Minnesota identification card bearing a symbol or other appropriate 
45.34 	identifier indicating that the license holder has appointed an individual to serve as a 
45.35 	standby or temporary custodian under chapter 257B.
46.1 	(b) The request must be accompanied by a copy of the designation executed under 
46.2 	section 257B.04.
46.3 	(c) The department shall maintain a computerized records system of all individuals 
46.4 	listed as standby or temporary custodians by driver's license and identification card 
46.5 	applicants. This data must be released to appropriate law enforcement agencies under 
46.6 	section 13.69. Upon a parent's request and payment of a fee of $3.50 $4.25, the 
46.7 	department shall revise its list of standby or temporary custodians to reflect a change 
46.8 	in the appointment.
46.9 	(d) At the request of the license or cardholder, the department shall cancel the 
46.10 	standby or temporary custodian indication without additional charge. However, this 
46.11 	paragraph does not prohibit a fee that may be applicable for a duplicate or replacement 
46.12 	license or card, renewal of a license, or other service applicable to a driver's license or 
46.13 	identification card.
46.14 	(e) Notwithstanding sections 13.08, subdivision 1, and 13.69, the department 
46.15 	and department employees are conclusively presumed to be acting in good faith when 
46.16 	employees rely on statements made, in person or by telephone, by persons purporting to be 
46.17 	law enforcement and subsequently release information described in paragraph (b). When 
46.18 	acting in good faith, the department and department personnel are immune from civil 
46.19 	liability and not subject to suit for damages resulting from the release of this information.
46.20 	(f) The department and its employees:
46.21 	(1) have no duty to inquire or otherwise determine whether a designation submitted 
46.22 	under this subdivision is legally valid and enforceable; and
46.23 	(2) are immune from all civil liability and not subject to suit for damages resulting 
46.24 	from a claim that the designation was not legally valid and enforceable.
46.25 	(g) Of the fees received by the department under this subdivision:
46.26 	(1) Up to $61,000 received must be deposited in the general fund.
46.27 	(2) All other fees must be deposited in the driver services operating account in the 
46.28 	special revenue fund specified in section 299A.705.

46.29 	Sec. 8. Minnesota Statutes 2006, section 171.20, subdivision 4, is amended to read:
46.30 		Subd. 4.Reinstatement fee. (a) Before the license is reinstated, (1) an individual 
46.31 	whose driver's license has been suspended under section 171.16, subdivisions 2 and 3; 
46.32 	171.175; 171.18; or 171.182, or who has been disqualified from holding a commercial 
46.33 	driver's license under section 171.165, and (2) an individual whose driver's license has 
46.34 	been suspended under section 171.186 and who is not exempt from such a fee, must 
46.35 	pay a fee of $20.
47.1 	(b) Before the license is reinstated, an individual whose license has been suspended 
47.2 	under sections 169.791 to 169.798 must pay a $20 reinstatement fee.
47.3 	(c) When fees are collected by a licensing agent appointed under section 171.061, a 
47.4 	handling charge is imposed in the amount specified under section 171.061, subdivision 4. 
47.5 	The reinstatement fee and surcharge must be deposited in an approved state depository as 
47.6 	directed under section 171.061, subdivision 4.
47.7 	(d) Reinstatement fees collected under paragraph (a) for suspensions under sections 
47.8 	171.16, subdivision 3, and 171.18, subdivision 1, clause (10), must be deposited in the 
47.9 	special revenue fund and are appropriated to the Peace Officer Standards and Training 
47.10 	Board for peace officer training reimbursement to local units of government.
47.11 	(e) A suspension may be rescinded without fee for good cause.

47.12 	Sec. 9. Minnesota Statutes 2006, section 299D.09, is amended to read:
47.13 	299D.09 ESCORT SERVICE; APPROPRIATION; RECEIPTS.
47.14 	Fees charged for escort services provided by the State Patrol are annually 
47.15 	appropriated to the commissioner of public safety to administer and provide these services.
47.16 	The fees charged for services provided by the State Patrol with a vehicle are $73.60 
47.17 	an hour in fiscal year 2008 and $75.76 an hour in fiscal year 2009 and thereafter. The fees 
47.18 	charged for services provided without a vehicle are $54.00 an hour in fiscal year 2008 and 
47.19 	$56.16 an hour in fiscal year 2009 and thereafter.
47.20 	The fees charged for State Patrol flight services are $140 an hour for a fixed wing 
47.21 	aircraft, $490 an hour for a helicopter, and $600 an hour for the Queen Air.

47.22 	ARTICLE 9
47.23 	TRUNK HIGHWAY BONDING

47.24 	Section 1. [296A.083] ANNUAL DEBT SERVICE SURCHARGE.
47.25 	(a) On April 1, 2009, and each April 1 thereafter, the commissioner of finance 
47.26 	shall report to the commissioner of revenue:
47.27 	(1) the amount of debt service forecast to be payable in the next fiscal year 
47.28 	attributable to the trunk highway bonds authorized in sections 2 to 4; and
47.29 	(2) the balance in the trunk highway bond proceeds account forecast to be available 
47.30 	at the close of the current fiscal year.
47.31 	(b) The commissioner of revenue shall compute and publish a surcharge for each 
47.32 	fuel tax provided for in sections 296A.07, subdivision 3, and 296A.08, subdivision 2. The 
47.33 	surcharge must be calculated to raise an amount of money which, when added to the 
47.34 	balance in the trunk highway bond proceeds account, covers the debt service forecast to be 
48.1 	payable in the next fiscal year. The new surcharge must be rounded to the nearest 0.1 cent 
48.2 	and is effective on the next July 1 to June 30.

48.3 	Sec. 2. TRANSPORTATION APPROPRIATIONS.
 48.4 	$200,000,000 is appropriated from the bond proceeds account in the trunk highway 
48.5 	fund to the commissioner of transportation in each of fiscal years 2008 through 2017 for 
48.6 	trunk highway improvements. No more than $30,000,000 of each year's appropriation 
48.7 	may be used by the commissioner for program delivery.
48.8 	Of this amount, in 2008:
48.9 	(1) $4,299,000 is for predesign, design, construction, and restoration of historic 
48.10 	roadside properties on the Great River Road. The commissioner shall consult with the 
48.11 	Minnesota Mississippi River Parkway Commission to determine project priorities;
48.12 	(2) $20,673,000 is to the commissioner of transportation to design, construct, furnish, 
48.13 	and equip a new Department of Transportation district headquarters facility in Mankato; 
48.14 	(3) $12,715,000 is appropriated to the commissioner of administration to repair and 
48.15 	renovate the exterior of the Department of Transportation Building at 395 John Ireland 
48.16 	Boulevard in St. Paul; and
48.17 	(4) $40,000,000 is for construction of interchanges involving a trunk highway, 
48.18 	where the interchange will promote economic development, increase employment, relieve 
48.19 	growing traffic congestion, and promote traffic safety.

48.20 	Sec. 3. FINANCE APPROPRIATION.
 48.21 	$200,000 is appropriated from the bond proceeds account in the trunk highway 
48.22 	fund to the commissioner of finance in each of fiscal years 2008 through 2017 for bond 
48.23 	sale expenses under Minnesota Statutes, sections 16A.641, subdivision 8, and 167.50, 
48.24 	subdivision 4.

48.25 	Sec. 4. BOND SALE AUTHORIZATION.
 48.26 	To provide the money appropriated in this article from the bond proceeds account 
48.27 	in the trunk highway fund, the commissioner of finance shall sell and issue bonds of the 
48.28 	state in an amount up to $2,002,000,000 in the manner, upon the terms, and with the 
48.29 	effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota 
48.30 	Constitution, article XIV, section 11, at the times and in the amounts requested by the 
48.31 	commissioner of transportation. The proceeds of the bonds, except accrued interest and 
48.32 	any premium received from the sale of the bonds, must be deposited in the bond proceeds 
48.33 	account in the trunk highway fund.

49.1 	ARTICLE 10
49.2 	TRANSPORTATION STATUTORY CHANGES

49.3 	Section 1. Minnesota Statutes 2006, section 53C.01, subdivision 2, is amended to read:
49.4 		Subd. 2.Cash sale price. "Cash sale price" means the price at which the seller 
49.5 	would in good faith sell to the buyer, and the buyer would in good faith buy from the seller, 
49.6 	the motor vehicle which is the subject matter of the retail installment contract, if such sale 
49.7 	were a sale for cash, instead of a retail installment sale. The cash sale price may include 
49.8 	any taxes, charges for delivery, servicing, repairing, or improving the motor vehicle, 
49.9 	including accessories and their installation, and any other charges agreed upon between 
49.10 	the parties. The cash price may not include a documentary fee or document administration 
49.11 	fee in excess of $50 $75 for services actually rendered to, for, or on behalf of, the retail 
49.12 	buyer in preparing, handling, and processing documents relating to the motor vehicle and 
49.13 	the closing of the retail sale. "Documentary fee" and "document administration fee" do 
49.14 	not include an optional electronic transfer fee as defined under subdivision 14.

49.15 	Sec. 2. Minnesota Statutes 2006, section 161.081, is amended to read:
49.16 	161.081 HIGHWAY USER TAX, DISTRIBUTION, INVESTMENT.
49.17 		Subdivision 1.Distribution of five percent. (a) Pursuant to article 14, section 5, of 
49.18 	the Constitution, five percent of the net highway user tax distribution fund is set aside, and 
49.19 	apportioned to the county state-aid highway fund.
49.20 	(b) That apportionment is further distributed as follows:
49.21 	(1) 30.5 percent to the town road account created in section 162.081; 
49.22 	(2) 16 percent to the town bridge account, which is created in the state treasury; and
49.23 	(3) 5.5 percent to the municipal turnback account, which is created in the state 
49.24 	treasury for restoration of trunk highways that have reverted or that will revert to cities;
49.25 	(4) 33.5 percent to the county turnback account, which is created in the state treasury 
49.26 	for restoration of trunk highways that have reverted or will revert to counties; and
49.27 	(5)53.514.5 percent to the flexible highway account created in subdivision 3.
49.28 	For purposes of this subdivision, "restoration" means the level of effort required to improve 
49.29 	the route that will be turned back to an acceptable condition as determined by agreement 
49.30 	made between the commissioner and the county or city before the route is turned back.
49.31 		Subd. 2.Investment. Upon the request of the commissioner, money in the highway 
49.32 	user tax distribution fund shall be invested by the State Board of Investment in those 
49.33 	securities authorized for that purpose in section 11A.21. All interest and profits from the 
50.1 	investments must be credited to the highway user tax distribution fund. The commissioner 
50.2 	of finance shall be the custodian of all securities purchased under this section. 
50.3 		Subd. 3.Flexible highway account; turnback accounts. (a) The flexible highway 
50.4 	account is created in the state treasury. Money in the account maymust be used either 
50.5 	for the restoration of former trunk highways that have reverted to counties or to statutory 
50.6 	or home rule charter cities or for regular trunk highway purposessafety improvements 
50.7 	on trunk highways, county highways, municipal highways or streets, or for routes of 
50.8 	regional significance.
50.9 	(b) For purposes of this subdivision, "restoration" means the level of effort required 
50.10 	to improve the route that will be turned back to an acceptable condition as determined 
50.11 	by agreement made between the commissioner and the county or city before the route 
50.12 	is turned back.
50.13 	(c) The commissioner shall review the need for funds to restore highways that have 
50.14 	been or will be turned back and the need for funds for the trunk highway system. The 
50.15 	commissioner shall determine, on a biennial basis, the percentage of this flexible account 
50.16 	to be used for county turnbacks, for municipal turnbacks, and for regular trunk highway 
50.17 	projects safety improvements on trunk highways, county highways, municipal highways 
50.18 	or streets, and for routes of regional significance. The commissioner shall make this 
50.19 	determination only after meeting and holding discussions with committees selected by the 
50.20 	statewide associations of both county commissioners and municipal officials.
50.21 	(d) Money that will be used for the restoration of trunk highways that have reverted 
50.22 	or that will revert to cities must be deposited in the municipal turnback account, which is 
50.23 	created in the state treasury.
50.24 	(e) Money that will be used for the restoration of trunk highways that have reverted 
50.25 	or that will revert to counties must be deposited in the county turnback account, which is 
50.26 	created in the state treasury.
50.27 	(c) Money that will be used for safety improvements must be deposited in the 
50.28 	highway safety improvement account, which is created in the state treasury to be used on 
50.29 	the trunk highway system or as grants to statutory or home rule charter cities, towns, and 
50.30 	counties to assist in paying the costs of constructing or reconstructing trunk highways, city 
50.31 	streets, county highways, or town roads to reduce crashes, deaths, injuries, and property 
50.32 	damage.
50.33 	(f)(d) Money that will be used for routes of regional significance must be deposited 
50.34 	in the routes of regional significance account, which is created in the state treasury, and 
50.35 	used as grants to statutory or home rule charter cities, towns, and counties to assist in 
50.36 	paying the costs of constructing or reconstructing city streets, county highways, or town 
51.1 	roads with statewide or regional significance that have not been fully funded through 
51.2 	other state, federal, or local funding sources.
51.3 	(e) As part of each biennial budget submission to the legislature, the commissioner 
51.4 	shall describe how the money in the flexible highway account will be apportioned among 
51.5 	the county turnback account, the municipal turnback account, and the trunk highway fund
51.6 	between the highway safety improvement account and the routes of regional significance 
51.7 	account.
51.8 	(g) Money apportioned from the flexible highway account to the trunk highway fund 
51.9 	must be used for state road construction and engineering costs.

51.10 	EFFECTIVE DATE.  Paragraph (e) is effective January 1, 2009, and the remainder 
51.11 	of this section is effective July 1, 2009.

51.12 	Sec. 3. Minnesota Statutes 2006, section 168.1255, is amended by adding a subdivision 
51.13 	to read:
51.14 		Subd. 6.World War II memorial donation matching account. Money remaining 
51.15 	in the World War II memorial donation matching account after the state share of the 
51.16 	construction costs of the World War II memorial has been paid in full is appropriated to the 
51.17 	commissioner of veterans affairs for services and programs for veterans and their families.

51.18 	Sec. 4. Minnesota Statutes 2006, section 171.29, subdivision 2, is amended to read:
51.19 		Subd. 2.Reinstatement fees and surcharges allocated and appropriated. (a) 
51.20 	An individual whose driver's license has been revoked as provided in subdivision 1, 
51.21 	except under section 169A.52, 169A.54, or 609.21, must pay a $30 fee before the driver's 
51.22 	license is reinstated.
51.23 	(b) A person whose driver's license has been revoked as provided in subdivision 
51.24 	1 under section 169A.52, 169A.54, or 609.21, must pay a $250 fee plus a $40 $430
51.25 	surcharge before the driver's license is reinstated, except as provided in paragraph (f). 
51.26 	Beginning July 1, 2002, the surcharge is $145. Beginning July 1, 2003, the surcharge is 
51.27 	$430. The $250 fee is to be credited as follows:
51.28 	(1) Twenty percent must be credited to the driver services operating account in the 
51.29 	special revenue fund as specified in section 299A.705.
51.30 	(2) Sixty-seven percent must be credited to the general fund.
51.31 	(3) Eight percent must be credited to a separate account to be known as the Bureau 
51.32 	of Criminal Apprehension account. Money in this account may be appropriated to the 
51.33 	commissioner of public safety and the appropriated amount must be apportioned 80 percent 
51.34 	for laboratory costs and 20 percent for carrying out the provisions of section 299C.065.
52.1 	(4) Five percent must be credited to a separate account to be known as the vehicle 
52.2 	forfeiture account, which is created in the special revenue fund. The money in the account 
52.3 	is annually appropriated to the commissioner for costs of handling vehicle forfeitures.
52.4 	(c) The revenue from $50 of each the surcharge, or $25 for each year of 
52.5 	reinstatement under paragraph (f), must be credited to a separate account to be known as 
52.6 	the traumatic brain injury and spinal cord injury account. The money in the account is 
52.7 	annually appropriated to the commissioner of health to be used as follows: 83 percent 
52.8 	for contracts with a qualified community-based organization to provide information, 
52.9 	resources, and support to assist persons with traumatic brain injury and their families to 
52.10 	access services, and 17 percent to maintain the traumatic brain injury and spinal cord 
52.11 	injury registry created in section 144.662. For the purposes of this paragraph, a "qualified 
52.12 	community-based organization" is a private, not-for-profit organization of consumers of 
52.13 	traumatic brain injury services and their family members. The organization must be 
52.14 	registered with the United States Internal Revenue Service under section 501(c)(3) as a 
52.15 	tax-exempt organization and must have as its purposes:
52.16 	(1) the promotion of public, family, survivor, and professional awareness of the 
52.17 	incidence and consequences of traumatic brain injury;
52.18 	(2) the provision of a network of support for persons with traumatic brain injury, 
52.19 	their families, and friends;
52.20 	(3) the development and support of programs and services to prevent traumatic 
52.21 	brain injury;
52.22 	(4) the establishment of education programs for persons with traumatic brain injury; 
52.23 	and
52.24 	(5) the empowerment of persons with traumatic brain injury through participation 
52.25 	in its governance.
52.26 	A patient's name, identifying information, or identifiable medical data must not be 
52.27 	disclosed to the organization without the informed voluntary written consent of the patient 
52.28 	or patient's guardian or, if the patient is a minor, of the parent or guardian of the patient.
52.29 	(d) The remainder of the surcharge must be credited to a separate account to be 
52.30 	known as the remote electronic alcohol-monitoring program account. The commissioner 
52.31 	shall transfer the balance of this account to the commissioner of finance on a monthly 
52.32 	basis for deposit in the general fund.
52.33 	(e) When these fees are collected by a licensing agent, appointed under section 
52.34 	171.061, a handling charge is imposed in the amount specified under section 171.061, 
52.35 	subdivision 4. The reinstatement fees and surcharge must be deposited in an approved 
52.36 	depository as directed under section 171.061, subdivision 4.
53.1 	(f) A person whose driver's license has been revoked as provided in subdivision 1 
53.2 	under section 169A.52 or 169A.54 and who the court certifies as being financially eligible 
53.3 	for a public defender under section 611.17, may choose to pay 50 percent of the total 
53.4 	amount of the surcharge and fee required under paragraph (b) to reinstate the person's 
53.5 	driver's license, provided the person meets all other requirements of reinstatement. If a 
53.6 	person chooses to pay 50 percent of the total, the driver's license must expire after two 
53.7 	years. The person must pay an additional 50 percent of the total to extend the license for 
53.8 	an additional two years, provided the person is otherwise still eligible for the license. After 
53.9 	this final payment of the surcharge and fee, the license may be renewed on a standard 
53.10 	schedule, as provided under section 171.27. A handling charge may be imposed for each 
53.11 	installment payment.
53.12 	(g) Any person making installment payments under paragraph (f), whose driver's 
53.13 	license subsequently expires, or is canceled, revoked, or suspended before payment of 
53.14 	100 percent of the surcharge and fee, must pay the outstanding balance due for the initial 
53.15 	reinstatement before the driver's license is subsequently reinstated. Upon payment of 
53.16 	the outstanding balance due for the initial reinstatement, the person may pay any new 
53.17 	surcharge and fee imposed under paragraph (b) in installment payments as provided 
53.18 	under paragraph (f).

53.19 	EFFECTIVE DATE. This section is effective July 1, 2008.

53.20 	Sec. 5. Minnesota Statutes 2006, section 174.03, subdivision 9, is amended to read:
53.21 		Subd. 9.Forecast of revenues and expenditures. In cooperation with the 
53.22 	Department of Finance and as required by section 16A.103, the commissioner shall 
53.23 	prepare in February and November of each year a forecast of highway user tax distribution 
53.24 	fund and trunk highway fund revenues and expenditures. The forecast must include an 
53.25 	analysis of economic information and the potential impact on highway user fund revenues, 
53.26 	historical growth rate information, and other variables affecting revenue assumptions and 
53.27 	forecasted future growth rates. The forecast must include an analysis of trunk highway 
53.28 	bonding and the necessary debt service payments, and assumptions regarding federal 
53.29 	transportation funds. The commissioner shall review the forecast information with the 
53.30 	chairs of the senate and house of representatives committees with jurisdiction over finance, 
53.31 	ways and means, and transportation finance and with legislative fiscal staff no later than 
53.32 	two weeks beforeone week following the release of the forecast is released and shall 
53.33 	inform the chairs and staff of changes made from previous forecasts.

54.1 	Sec. 6. Minnesota Statutes 2006, section 174.03, is amended by adding a subdivision 
54.2 	to read:
54.3 		Subd. 10.Highway construction training. (a) The commissioner of transportation 
54.4 	shall utilize all federal funds available to this state under United States Code, title 23, 
54.5 	section 140, paragraph (b), to develop, conduct, and administer highway construction 
54.6 	training, including skill improvement programs.
54.7 	(b) The commissioner of transportation must report by February 1 of each 
54.8 	odd-numbered year to the house of representatives and senate committees having 
54.9 	jurisdiction over transportation policy and finance concerning the commissioner's 
54.10 	compliance with paragraph (a). The report must, with respect to each of the two previous 
54.11 	calendar years:
54.12 	(1) describe the highway construction training and skill improvement programs the 
54.13 	commissioner has conducted and administered;
54.14 	(2) analyze the results of the commissioner's training programs;
54.15 	(3) state the amount of federal funds available to this state under United States Code, 
54.16 	title 23, section 140, paragraph (b); and
54.17 	(4) identify the amount spent by the commissioner in conducting and administering 
54.18 	the programs.

54.19 	Sec. 7. Minnesota Statutes 2006, section 174.03, is amended by adding a subdivision 
54.20 	to read:
54.21 		Subd. 11.Disadvantaged business enterprise program. (a) The commissioner 
54.22 	shall include in each contract that is funded at least in part by federal funds, a penalty 
54.23 	for each contractor who does not meet the established project disadvantaged business 
54.24 	enterprise goal or demonstrate good faith effort to meet the goal.
54.25 	(b) The commissioner of transportation shall report by February 1 of each 
54.26 	odd-numbered year to the house of representatives and senate committees having 
54.27 	jurisdiction over transportation policy and finance concerning the commissioner's 
54.28 	disadvantaged business enterprise program. The report must, with respect to each of 
54.29 	the two previous calendar years:
54.30 	(1) state the department's annual aspirational goal, compared with the percentage 
54.31 	attained;
54.32 	(2) explain the methodology, applicable facts, and public participation used to 
54.33 	establish the aspirational goal;
54.34 	(3) describe good faith efforts to meet the goal, if the goal was not attained;
55.1 	(4) describe actions to address overconcentration of disadvantaged business 
55.2 	enterprises in certain types of work;
55.3 	(5) state the number of contracts that included disadvantaged business enterprise 
55.4 	goals, the number of contractors that met established disadvantaged business enterprise 
55.5 	goals, and penalties imposed for lack of good faith effort; and
55.6 	(6) describe contracts with no disadvantaged business enterprise goals, and, of 
55.7 	those, state number of contracts and amount of each contract with targeted groups under 
55.8 	section 16C.16.

55.9 	Sec. 8. [174.56] REPORT ON MAJOR HIGHWAY PROJECTS.
55.10 		Subdivision 1.Report required. The commissioner of transportation shall submit a 
55.11 	report on January 15, 2008, and on January 15 of each year thereafter, on the status of 
55.12 	major highway projects under construction or planned during the year of the report and for 
55.13 	the ensuing 15 years. For purposes of this section, a "major highway project" is a highway 
55.14 	project that has a total cost for all segments that the commissioner estimates at the time 
55.15 	of the report to be at least $10,000,000.
55.16 		Subd. 2.Report contents. For each major highway project the report must include:
55.17 	(1) a description of the project sufficient to specify its scope and location;
55.18 	(2) a history of the project, including, but not limited to, previous official actions 
55.19 	by the department or the appropriate area transportation partnership, or both, the date 
55.20 	on which the project was first included in the state transportation improvement plan, 
55.21 	the cost of the project at that time, the dates of environmental approval, the dates of 
55.22 	municipal approval, the date of final geometric layout, and the date of establishment of 
55.23 	any construction limits;
55.24 	(3) the project's priority listing or rank within its construction district, if any, as 
55.25 	well as the reasons for that listing or rank, the criteria used in prioritization or rank, any 
55.26 	changes in that prioritization or rank since the project was first included in a department 
55.27 	work plan, and the reasons for those changes; and
55.28 	(4) past and potential future reasons for delay in letting or completing the project.
55.29 		Subd. 3.Department resources. The commissioner shall prepare and submit the 
55.30 	report under this section with existing department staff and resources.

55.31 	Sec. 9. Minnesota Statutes 2006, section 296A.18, is amended to read:
55.32 	296A.18 APPORTIONMENT OF TAX; DEPOSIT OF PROCEEDS.
56.1 		Subdivision 1.Intent; gasoline use. All gasoline received in this state and all 
56.2 	gasoline produced in or brought into this state except aviation gasoline and marine 
56.3 	gasoline shall be determined to be intended for use in motor vehicles in this state.
56.4 		Subd. 2.Motorboat. Approximately 1-1/21.695 percent of all gasoline received 
56.5 	in this state and 1-1/2 percent of all gasoline produced or brought into this state, except 
56.6 	gasoline used for aviation purposes, is being used as fuel for the operation of motorboats 
56.7 	on the waters of this state and of the total revenue derived from the imposition of the 
56.8 	gasoline fuel tax for uses other than for aviation purposes, 1-1/2 percent of the revenue is 
56.9 	the amount of tax on fuel used in motorboats operated on the waters of this state. The 
56.10 	amount of unrefunded tax paid on gasoline used for motor boat purposes as computed 
56.11 	in this chapter shall be paid into the state treasury and credited to a water recreation 
56.12 	account in the special revenue fund for acquisition, development, maintenance, and 
56.13 	rehabilitation of sites for public access and boating facilities on public waters; lake and 
56.14 	river improvement; and boat and water safety.
56.15 		Subd. 3.Snowmobile. Approximately one1.13 percent of all gasoline received 
56.16 	in and produced or brought into this state, except gasoline used for aviation purposes, is 
56.17 	being used as fuel for the operation of snowmobiles in this state, and of the total revenue 
56.18 	derived from the imposition of the gasoline fuel tax for uses other than for aviation 
56.19 	purposes, one percent of such revenues is the amount of tax on fuel used in snowmobiles 
56.20 	operated in this state.
56.21 		Subd. 4.All-terrain vehicle. Approximately 0.150.17 of one percent of all gasoline 
56.22 	received in or produced or brought into this state, except gasoline used for aviation 
56.23 	purposes, is being used for the operation of all-terrain vehicles in this state, and of the total 
56.24 	revenue derived from the imposition of the gasoline fuel tax, 0.15 of one percent is the 
56.25 	amount of tax on fuel used in all-terrain vehicles operated in this state.
56.26 		Subd. 5.Off-highway motorcycles. Approximately 0.0460.052 of one percent of 
56.27 	all gasoline received or produced in or brought into this state, except gasoline used for 
56.28 	aviation purposes, is being used for the operation of off-highway motorcycles in this state, 
56.29 	and of the total revenue derived from the imposition of the gasoline fuel tax for uses other 
56.30 	than for aviation purposes, 0.046 of one percent is the amount of tax on fuel used in 
56.31 	off-highway motorcycles operated in this state.
56.32 		Subd. 6.Off-road vehicle. Approximately 0.1640.185 of one percent of all 
56.33 	gasoline received or produced in or brought into this state, except gasoline used for 
56.34 	aviation purposes, is being used for the off-road operation of off-road vehicles, as defined 
56.35 	in section 84.797, in this state, and of the total revenue derived from the imposition of the 
57.1 	gasoline fuel tax for uses other than aviation purposes, 0.164 of one percent is the amount 
57.2 	of tax on fuel used for off-road operation of off-road vehicles in this state. 
57.3 		Subd. 7.Forest road. Approximately 0.1160.131 percent of the total annual 
57.4 	unrefunded revenue from the gasoline fuel tax on all gasoline and special fuel received 
57.5 	in, produced, or brought into this state, except gasoline and special fuel used for aviation 
57.6 	purposes, is derived from the operation of motor vehicles on state forest roads and county 
57.7 	forest access roads. This revenue is appropriated from the highway user tax distribution 
57.8 	fund and must be transferred and credited in equal installments on July 1 and January 
57.9 	1 to the state forest road account established in section 89.70. Of this amount, 0.0605
57.10 	0.0683 percent is annually derived from motor vehicles operated on state forest roads and 
57.11 	0.05550.0627 percent is annually derived from motor vehicles operated on county forest 
57.12 	access roads in this state. An amount equal to 0.05550.0627 percent of the unrefunded 
57.13 	revenue must be annually transferred to counties for the management and maintenance of 
57.14 	county forest roads. 
57.15 		Subd. 8.Airports. The revenues derived from the excise taxes on aviation gasoline 
57.16 	and on special fuel received, sold, stored, or withdrawn from storage as substitutes for 
57.17 	aviation gasoline, shall be paid into the state treasury and credited to the state airports 
57.18 	fund. There is hereby appropriated such sums as are needed to carry out the provisions 
57.19 	of this subdivision.
57.20 		Subd. 9.Computation of unrefunded tax. The amount of unrefunded tax shall be 
57.21 	a sum equal to 1-1/2 percent of all revenues derived from the excise taxes on gasoline, 
57.22 	except on gasoline used for aviation purposes, together with interest thereon and penalties 
57.23 	for delinquency in payment, paid or collected pursuant to the provisions of this chapter. 
57.24 	The amount of such tax shall be computed for each six-month period and shall be paid 
57.25 	into the state treasury on November 1 and June 1 following each six-month period.

57.26 	Sec. 10. [398A.10] TRANSIT FUNDING.
57.27 		Subdivision 1.Capital costs. A county regional railroad authority may not 
57.28 	contribute more than ten percent of the capital costs on a transit project. For purposes of 
57.29 	this section, "transit project" includes, but is not limited to, light rail transit, bus, bus 
57.30 	rapid transit, and commuter rail.
57.31 		Subd. 2.Operating and maintenance costs. A county regional railroad authority 
57.32 	may not contribute any funds to pay the operating and maintenance costs for a transit 
57.33 	project, as defined in subdivision 1. If a county regional railroad authority is contributing 
57.34 	funds for operating and maintenance costs on a transit project on the date of the enactment 
58.1 	of this act, the authority may continue to contribute funds for these purposes until January 
58.2 	1, 2009.

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

58.4 	Sec. 11. Minnesota Statutes 2006, section 473.166, is amended to read:
58.5 	473.166 CONTROLLED ACCESS; TRANSIT FIXED-GUIDEWAY;
58.6 	APPROVAL.
58.7 	Before acquiring land for or constructing a controlled access highway or transit 
58.8 	fixed-guideway in the area, the state Transportation Department or local government 
58.9 	unit proposing the acquisition or construction shall submit to the council a statement 
58.10 	describing the proposed project. The statement must be in the form and detail required by 
58.11 	the council. The council shall review the statement to ascertain its consistency with its 
58.12 	policy plan and the development guide. No project may be undertaken unless the council 
58.13 	determines that it is consistent with the policy plan. This approval is in addition to the 
58.14 	requirements of any other statute, ordinance or rule.

58.15 	Sec. 12. Minnesota Statutes 2006, section 473.39, is amended by adding a subdivision 
58.16 	to read:
58.17 		Subd. 1m.OBLIGATIONS. After July 1, 2007, in addition to other authority in 
58.18 	this section, the council may issue certificates of indebtedness, bonds, or other obligations 
58.19 	under this section in an amount not exceeding $44,000,000 for capital expenditures as 
58.20 	prescribed in the council's regional transit master plan and transit capital improvement 
58.21 	program and for related costs, including the costs of issuance and sale of the obligations.

58.22 	Sec. 13. Minnesota Statutes 2006, section 473.399, is amended to read:
58.23 	473.399 TRANSIT WAYS; LIGHT RAIL TRANSIT AND COMMUTER RAIL 
58.24 	PLANNING IN THE METROPOLITAN AREA.
58.25 		Subdivision 1.General requirements. (a) The council must identify in its 
58.26 	transportation policy plan those heavily traveled corridors where development of a transit 
58.27 	way may be feasible and cost-effective. Modes of providing service in a transit way may 
58.28 	include bus rapid transit, light rail transit, commuter rail, or other available systems or 
58.29 	technologies that improve transit service.
58.30 	(b) After the completion of environmental studies and receipt of input from the 
58.31 	governing body of each statutory and home rule charter city, county, and town in which a 
59.1 	transit way is proposed to be constructed, the council must designate the locally preferred 
59.2 	alternative transit mode with respect to the corridor.
59.3 	(c) The council shall adopt a plan to ensure that any light rail transit facilities
59.4 	that are designated as the locally preferred alternative and that are to be constructed in 
59.5 	the metropolitan area will be acquired, developed, owned, and capable of operation in 
59.6 	an efficient, cost-effective, and coordinated manner in coordination with buses and other 
59.7 	transportation modes and facilities. The plan may be developed and adopted in phases 
59.8 	corresponding to phasing of construction of light rail. The council may incorporate into its 
59.9 	plan appropriate elements of the plans of regional railroad authorities in order to avoid 
59.10 	duplication of effort.
59.11 	(b) The light rail transit plan or first phase of the plan required by this section must 
59.12 	be adopted by the council before the commissioner of transportation may begin
59.13 	 (d) Construction of light rail transit facilities in a particular transit corridor may not 
59.14 	commence unless and until that mode is designated as the locally preferred alternative 
59.15 	for that corridor by the council. Following adoption of the plan, the commissioner of 
59.16 	transportation shall act in conformity with the plan. The commissioner shall prepare or 
59.17 	amend the final design plans as necessary to make the plans consistent with the light 
59.18 	rail transit plan.
59.19 	(c) Throughout the development and implementation of the plan, the council shall 
59.20 	contract for or otherwise obtain engineering services to assure that the plan adequately 
59.21 	addresses the technical aspects of light rail transit.
59.22 		Subd. 1a.Integrated transportation system. The commissioner of transportation 
59.23 	and the Metropolitan Council shall ensure that the light rail transit and commuter rail 
59.24 	facilities are planned, designed, and implemented: (1) to move commuters and transit 
59.25 	users into and out of, as well as within, the metropolitan area, and (2) to ensure that rail 
59.26 	transit lines will interface with each other and other transportation facilities and services 
59.27 	so as to provide a unified, integrated, and efficient multimodal transportation system.
59.28 		Subd. 4.Expenditure of state funds. No state funds may be expended by the 
59.29 	Metropolitan Council to study a particular light rail transit or commuter rail facility unless 
59.30 	the funds are appropriated in legislation that identifies the route, including the origin 
59.31 	and destination.

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

59.33 	Sec. 14. Minnesota Statutes 2006, section 473.3993, subdivision 3, is amended to read:
59.34 		Subd. 3.Final design plan. "Final design plan" means a light rail transit plan that 
59.35 	includes the items in the preliminary design plan and the preliminary engineering plan for 
60.1 	the facilities proposed but with greater detail and specificity needed for construction. The 
60.2 	final design plan must include, at a minimum:
60.3 	(1) final plans for the physical design of facilities, including the right-of-way 
60.4 	definition; environmental impacts and mitigation measures; intermodal coordination with 
60.5 	bus operations and routes; and civil engineering plans for vehicles, track, stations, parking, 
60.6 	and access, including disability access; and
60.7 	(2) final plans for civil engineering for electrification, communication, and other 
60.8 	similar facilities; operational rules, procedures, and strategies; capital costs; ridership; 
60.9 	operating costs and revenues, and sources of funds for operating subsidies; financing for 
60.10 	construction and operation; an implementation method; and other similar matters.
60.11 	The final design plan must be stated with sufficient particularity and detail to 
60.12 	allow the proposer to begin the acquisition and construction of operable facilities. If a 
60.13 	design-build implementation method is proposed, instead of civil engineering plans the 
60.14 	final design plan must state detailed design criteria and performance standards for the 
60.15 	facilities.
60.16 	The commissioner of transportation may use A design-build method of project 
60.17 	development and construction may be utilized for construction of light rail transit. 
60.18 	Notwithstanding any law to the contrary, the commissioner may award a design-build 
60.19 	contract may be awarded on the basis of requests for proposals or requests for qualifications 
60.20 	without bids. "Design-build method of project development and construction" means a 
60.21 	project delivery system in which a single contractor is responsible for both the design and 
60.22 	construction of the project and bids the design and construction together.

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

60.24 	Sec. 15. Minnesota Statutes 2006, section 473.3994, is amended to read:
60.25 	473.3994 LIGHT RAIL TRANSIT; DESIGN PLANS.
60.26 		Subd. 1a.Designation of responsible authority. For each proposed light rail transit 
60.27 	facility in the metropolitan area, the governor must designate either the Metropolitan 
60.28 	Council or the state of Minnesota acting through the commissioner of transportation as 
60.29 	the entity responsible for planning, designing, acquiring, constructing, and equipping the 
60.30 	facility. For the purposes of this section and section 473.3997, the term "responsible 
60.31 	authority" means the entity designated by the governor for a particular light rail transit 
60.32 	facility. Notwithstanding such designation, the commissioner and the council may 
60.33 	enter into one or more cooperative agreements with respect to the planning, designing, 
60.34 	acquiring, constructing, or equipping of a particular light rail transit facility that provide 
61.1 	for the parties to exercise their respective authorities in support of the project in a manner 
61.2 	that best serves the project and the public.
61.3 		Subd. 2.Preliminary design plans; public hearing. Before final design plans are 
61.4 	prepared for a light rail transit facility in the metropolitan area, the commissioner of 
61.5 	transportation responsible authority and the regional railroad authority or authorities 
61.6 	in whose jurisdiction the line or lines are located must hold a public hearing on the 
61.7 	physical design component of the preliminary design plans. The commissioner of 
61.8 	transportation responsible authority and the regional railroad authority or authorities in 
61.9 	whose jurisdiction the line or lines are located must provide appropriate public notice of 
61.10 	the hearing and publicity to ensure that affected parties have an opportunity to present 
61.11 	their views at the hearing. The commissioner responsible authority shall summarize the 
61.12 	proceedings and testimony and maintain the record of a hearing held under this section, 
61.13 	including any written statements submitted.
61.14 		Subd. 3.Preliminary design plans; local approval. (a) At least 30 days before 
61.15 	the hearing under subdivision 2, the commissioner of transportation responsible authority
61.16 	shall submit the physical design component of the preliminary design plans to the 
61.17 	governing body of each statutory and home rule charter city, county, and town in which 
61.18 	the route is proposed to be located. The city, county, or town shall hold a public hearing. 
61.19 	Within 45 days after the hearing under subdivision 2, the city, county, or town shall review 
61.20 	and approve or disapprove the plans for the route to be located in the city, county, or town. 
61.21 	A local unit of government that disapproves the plans shall describe specific amendments 
61.22 	to the plans that, if adopted, would cause the local unit to withdraw its disapproval. Failure 
61.23 	to approve or disapprove the plans in writing within 45 days after the hearing is deemed 
61.24 	to be approval, unless an extension of time is agreed to by the city, county, or town and 
61.25 	the commissioner of transportation responsible authority.
61.26 		Subd. 4.Preliminary design plans; council referral. If the governing body of 
61.27 	one or more cities, counties, or towns disapproves the preliminary design plans within 
61.28 	the period allowed under subdivision 3, the commissioner of transportation may refer the 
61.29 	plans, along with any comments of local jurisdictions, to the Metropolitan Council. The
61.30 	council shall hold a hearing on the plans, giving the commissioner of transportation, if the 
61.31 	responsible authority, any disapproving local governmental units, and other persons an 
61.32 	opportunity to present their views on the plans. The council may conduct independent 
61.33 	study as it deems desirable and may mediate and attempt to resolve disagreements about 
61.34 	the plans. Within 90 60 days after the referral hearing, the council shall review the 
61.35 	plans submitted by the commissioner of transportation and the council and shall decide 
61.36 	what amendments to the plans, if any, must be made to accommodate the objections 
62.1 	presented by the disapproving local governmental units. The commissioner shall make the
62.2 	Amendments to the plans as decided by the council must be made before continuing the 
62.3 	planning and designing process.
62.4 		Subd. 5.Final design plans. (a) If the final design plans incorporate a substantial 
62.5 	change from the preliminary design plans with respect to location, length, or termini 
62.6 	of routes; general dimension, elevation, or alignment of routes and crossings; location 
62.7 	of tracks above ground, below ground, or at ground level; or station locations, before 
62.8 	beginning construction, the commissioner responsible party shall submit the changed 
62.9 	component of the final design plans to the governing body of each statutory and home 
62.10 	rule city, county, and town in which the changed component is proposed to be located. 
62.11 	Within 60 days after the submission of the plans, the city, county, or town shall review 
62.12 	and approve or disapprove the changed component located in the city, county, or town. A 
62.13 	local unit of government that disapproves the change shall describe specific amendments 
62.14 	to the plans that, if adopted, would cause the local unit to withdraw its disapproval. 
62.15 	Failure to approve or disapprove the changed plans in writing within the time period is 
62.16 	deemed to be approval, unless an extension is agreed to by the city, county, or town and 
62.17 	the commissioner responsible authority.
62.18 	(b) If the governing body of one or more cities, counties, or towns disapproves the 
62.19 	changed plans within the period allowed under paragraph (a), the commissioner may refer 
62.20 	the plans, along with any comments of local jurisdictions, to the Metropolitan Council. 
62.21 	The council shall review the final design plans under the same procedure and with the 
62.22 	same effect as provided in subdivision 4 for preliminary design plans.
62.23 		Subd. 7.Council review. If the commissioner is the responsible authority, before 
62.24 	proceeding with construction of a light rail transit facility, the commissioner must submit 
62.25 	preliminary and final design plans to the Metropolitan Council. The council must review 
62.26 	the plans for consistency with the council's development guide and approve the plans.
62.27 		Subd. 8.Metropolitan significance. This section does not diminish or replace the 
62.28 	authority of the council under section 473.173. 
62.29 		Subd. 9.Light rail transit operating costs. (a) Before submitting an application for 
62.30 	federal assistance for light rail transit facilities in the metropolitan area, the applicant must 
62.31 	provide to the Metropolitan Council estimates must prepare an estimate of the amount 
62.32 	of operating subsidy which will be required to operate light rail transit in the corridor to 
62.33 	which the federal assistance would be applied. The information provided to the council
62.34 	estimate must indicate the amount of operating subsidy estimated to be required in each 
62.35 	of the first ten years of operation of the light rail transit facility. If the commissioner of 
63.1 	transportation is the responsible authority, the commissioner must provide information 
63.2 	requested by the council that is necessary to make the estimate.
63.3 	(b) The council must review and evaluate the information provided estimate 
63.4 	developed under paragraph (a) with regard to the effect of operating the light rail transit 
63.5 	facility on the currently available mechanisms for financing transit in the metropolitan area.
63.6 		Subd. 10.Corridor Management Committee. The responsible authority 
63.7 	must establish a Corridor Management Committee shall be established to advise the 
63.8 	commissioner of transportation responsible authority in the design and construction of 
63.9 	light rail transit in each corridor to be constructed. The Corridor Management Committee
63.10 	for each corridor shall consist of the following members:
63.11 	(1) one member appointed by each city and county in which the corridor is located;
63.12 	(2) the commissioner of transportation or a designee of the commissioner;
63.13 	(3) two members appointed by the Metropolitan Council, one of whom shall be 
63.14 	designated as the chair of the committee;
63.15 	(4) one member appointed by the Metropolitan Airports Commission, if the 
63.16 	designated corridor provides direct service to the Minneapolis-St. Paul International 
63.17 	Airport; and
63.18 	(5) one member appointed by the president of the University of Minnesota, if the 
63.19 	designated corridor provides direct service to the university.
63.20 	The Corridor Management Committee shall advise the commissioner of 
63.21 	transportation responsible authority on issues relating to the alternatives analysis,
63.22 	environmental review, preliminary design, preliminary engineering, final design, 
63.23 	implementation method, and construction of light rail transit in the corridor.
63.24 		Subd. 13.Dispute resolution. In the event of a dispute between any of the parties 
63.25 	arising from the parties' respective authority and responsibility under this section, the 
63.26 	dispute shall be submitted to the Metropolitan Council for final resolution by any party to 
63.27 	the dispute. The Metropolitan Council shall establish by July 1, 1993, a process to ensure 
63.28 	a prompt and speedy resolution of the dispute. This process shall allow the parties to 
63.29 	provide evidence and testimony in support of their positions.
63.30 		Subd. 14.Transfer of facility after construction. If the commissioner of 
63.31 	transportation is the responsible authority for a particular light rail transit facility, the 
63.32 	commissioner must transfer to the Metropolitan Council all facilities constructed and 
63.33 	all equipment and property acquired in developing the facility upon completion of 
63.34 	construction.

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

64.1 	Sec. 16. Minnesota Statutes 2006, section 473.3997, is amended to read:
64.2 	473.3997 FEDERAL FUNDING; LIGHT RAIL TRANSIT.
64.3 	(a) Upon completion of the alternatives analysis and draft environmental impact 
64.4 	statement, and selection of the locally preferred alternative, for the central corridor 
64.5 	transit improvement project each light rail transit facility, the council, the commissioner 
64.6 	of transportation, and the affected regional rail authorities responsible authority may 
64.7 	prepare a joint an application for federal assistance for the light rail transit facilities in the 
64.8 	metropolitan area facility. If the commissioner is the responsible authority, the application 
64.9 	must be reviewed and approved by the Metropolitan Council before it is submitted by the 
64.10 	council and the commissioner. In reviewing the application the council must consider the 
64.11 	information submitted to it operating cost estimate developed under section 473.3994, 
64.12 	subdivision 9. 
64.13 	(b) Until the application described in paragraph (a) is submitted Except for the 
64.14 	designated responsible authority for a particular light rail transit facility, no political 
64.15 	subdivision in the metropolitan area may on its own apply for federal assistance for light 
64.16 	rail transit planning or construction.

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

64.18 	Sec. 17. [473.3999] LIGHT RAIL TRANSIT CONSTRUCTION IN THE 
64.19 	METROPOLITAN AREA; COUNCIL AUTHORITY.
64.20 	The Metropolitan Council may exercise the powers granted in this chapter and in 
64.21 	other applicable law, as necessary, to plan, design, acquire, construct, and equip light rail 
64.22 	transit facilities in the metropolitan area as defined in section 473.121, subdivision 2.

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

64.24 	Sec. 18. Minnesota Statutes 2006, section 473.4051, is amended to read:
64.25 	473.4051 LIGHT RAIL TRANSIT OPERATION.
64.26 	The council shall operate all light rail transit facilities and services located in the 
64.27 	metropolitan area upon completion of construction of the facilities and the commencement 
64.28 	of revenue service using the facilities. The commissioner of transportation and the council 
64.29 	may not allow the commencement of revenue service until after an appropriate period of 
64.30 	acceptance testing to ensure safe and satisfactory performance. In assuming the operation 
64.31 	of the system, the council must comply with section 473.415. The council shall coordinate 
64.32 	operation of the light rail transit system with bus service to avoid duplication of service 
65.1 	on a route served by light rail transit and to ensure the widest possible access to light rail 
65.2 	transit lines in both suburban and urban areas by means of a feeder bus system. 

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

65.4 	Sec. 19. Minnesota Statutes 2006, section 473.407, subdivision 1, is amended to read:
65.5 		Subdivision 1.Authorization. The council may appoint peace officers, as defined 
65.6 	in section 626.84, subdivision 1, paragraph (c), and establish a law enforcement agency, 
65.7 	as defined in section 626.84, subdivision 1, paragraph (f), known as the Metropolitan 
65.8 	Transit Police, to police its transit property and routes, to carry out investigations, and to 
65.9 	make arrests under sections 629.30 and 629.34. The jurisdiction of the law enforcement 
65.10 	agency is limited to offenses relating to council transit property, equipment, employees, 
65.11 	and passengers.  The jurisdiction of the Metropolitan Transit Police shall include traffic 
65.12 	lanes designed for bus or transit use, freeway or expressway shoulders in the seven-county 
65.13 	metropolitan area used by authorized transit buses and metro mobility buses under section 
65.14 	169.306, and high-occupancy vehicle lanes used by transit buses. Upon request from, or 
65.15 	under an agreement with, any law enforcement agency and subject to the availability of 
65.16 	its personnel and other resources, the Metropolitan Transit Police may exercise general 
65.17 	law enforcement agency authority to assist any law enforcement agency in implementing 
65.18 	or carrying out law enforcement activities, programs, or initiatives. If the commissioner 
65.19 	of transportation contracts with the Metropolitan Council for operation of commuter rail 
65.20 	facilities under section 174.90, the jurisdiction of the Metropolitan Transit Police extends 
65.21 	to offenses relating to the operation, property, facilities, equipment, employees, and 
65.22 	passengers of the commuter rail facilities located in and outside of the metropolitan area.

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

65.24 	Sec. 20. Minnesota Statutes 2006, section 473.446, subdivision 2, is amended to read:
65.25 		Subd. 2.Transit taxing district. The metropolitan transit taxing district is hereby 
65.26 	designated as that portion of the metropolitan transit area lying within the following 
65.27 	named cities, towns, or unorganized territory within the counties indicated:
65.28 	(a) Anoka County. Anoka, Blaine, Centerville, Columbia Heights, Coon Rapids, 
65.29 	Fridley, Circle Pines, Hilltop, Lexington, Lino Lakes, Spring Lake Park;
65.30 	(b) Carver County. Chanhassen, the city of Chaska;
65.31 	(c) Dakota County. Apple Valley, Burnsville, Eagan, Inver Grove Heights, Lilydale, 
65.32 	Mendota, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake, West St. Paul;
65.33 	(d) Ramsey County. All of the territory within Ramsey County;
66.1 	(e) Hennepin County. Bloomington, Brooklyn Center, Brooklyn Park, Champlin, 
66.2 	Chanhassen, Crystal, Deephaven, Eden Prairie, Edina, Excelsior, Golden Valley, 
66.3 	Greenwood, Hopkins, Long Lake, Maple Grove, Medicine Lake, Minneapolis, 
66.4 	Minnetonka, Minnetonka Beach, Mound, New Hope, Orono, Osseo, Plymouth, Richfield, 
66.5 	Robbinsdale, St. Anthony, St. Louis Park, Shorewood, Spring Park, Tonka Bay, Wayzata, 
66.6 	Woodland, the unorganized territory of Hennepin County;
66.7 	(f) Scott County. Prior Lake, Savage, Shakopee;
66.8 	(g) Washington County. Baytown, the city of Stillwater, White Bear Lake, Bayport, 
66.9 	Birchwood, Cottage Grove, Dellwood, Lake Elmo, Landfall, Mahtomedi, Newport, 
66.10 	Oakdale, Oak Park Heights, Pine Springs, St. Paul Park, Willernie, Woodbury means the 
66.11 	metropolitan area.
66.12 	The Metropolitan Council in its sole discretion may provide transit service by 
66.13 	contract beyond the boundaries of the metropolitan transit taxing district or to cities and 
66.14 	towns within the taxing district which are receiving financial assistance under section 
66.15 	473.388, upon petition therefor by an interested city, township or political subdivision 
66.16 	within the metropolitan transit area. The Metropolitan Council may establish such 
66.17 	terms and conditions as it deems necessary and advisable for providing the transit 
66.18 	service, including such combination of fares and direct payments by the petitioner as 
66.19 	will compensate the council for the full capital and operating cost of the service and the 
66.20 	related administrative activities of the council. The amount of the levy made by any 
66.21 	municipality to pay for the service shall be disregarded when calculation of levies subject 
66.22 	to limitations is made, provided that cities and towns receiving financial assistance under 
66.23 	section 473.388 shall not make a special levy under this subdivision without having first 
66.24 	exhausted the available local transit funds as defined in section 473.388. The council shall 
66.25 	not be obligated to extend service beyond the boundaries of the taxing district, or to cities 
66.26 	and towns within the taxing district which are receiving financial assistance under section 
66.27 	473.388, under any law or contract unless or until payment therefor is received. 

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

66.29 	Sec. 21. Minnesota Statutes 2006, section 473.446, subdivision 8, is amended to read:
66.30 		Subd. 8.State review. The commissioner of revenue shall certify the council's levy 
66.31 	limitation under this section to the council by August 1 of the levy year. The council 
66.32 	must certify its proposed property tax levy under this section to the commissioner of 
66.33 	revenue by September 1 of the levy year. The commissioner of revenue shall annually 
66.34 	determine whether the property tax for transit purposes certified by the council for levy 
66.35 	following the adoption of its proposed budget is within the levy limitation imposed by 
67.1 	subdivisionssubdivision 1 and 1b. Thecommissioner shall also annually determine 
67.2 	whether the transit tax imposed on all taxable property within the metropolitan transit area 
67.3 	but outside of the metropolitan transit taxing district is within the levy limitation imposed 
67.4 	by subdivision 1a. The determination must be completed prior to September 10 of each 
67.5 	year. If current information regarding market valuation in any county is not transmitted to 
67.6 	the commissioner in a timely manner, the commissioner may estimate the current market 
67.7 	valuation within that county for purposes of making the calculations.

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

67.9 	Sec. 22. Minnesota Statutes 2006, section 609.531, subdivision 1, is amended to read:
67.10 		Subdivision 1.Definitions. For the purpose of sections 609.531 to 609.5318, the 
67.11 	following terms have the meanings given them.
67.12 	(a) "Conveyance device" means a device used for transportation and includes, but 
67.13 	is not limited to, a motor vehicle, trailer, snowmobile, airplane, and vessel and any 
67.14 	equipment attached to it. The term "conveyance device" does not include property which 
67.15 	is, in fact, itself stolen or taken in violation of the law.
67.16 	(b) "Weapon used" means a dangerous weapon as defined under section 609.02, 
67.17 	subdivision 6, that the actor used or had in possession in furtherance of a crime.
67.18 	(c) "Property" means property as defined in section 609.52, subdivision 1, clause (1).
67.19 	(d) "Contraband" means property which is illegal to possess under Minnesota law.
67.20 	(e) "Appropriate agency" means the Bureau of Criminal Apprehension, the 
67.21 	Minnesota Division of Driver and Vehicle Services, the Minnesota State Patrol, a 
67.22 	county sheriff's department, the Three Rivers Park District park rangers, the Department 
67.23 	of Natural Resources Division of Enforcement, the University of Minnesota Police 
67.24 	Department, the Department of Corrections' Fugitive Apprehension Unit, or a city, 
67.25 	metropolitan transit,  or airport police department.
67.26 	(f) "Designated offense" includes:
67.27 	(1) for weapons used: any violation of this chapter, chapter 152, or chapter 624;
67.28 	(2) for driver's license or identification card transactions: any violation of section 
67.29 	171.22; and
67.30 	(3) for all other purposes: a felony violation of, or a felony-level attempt or 
67.31 	conspiracy to violate, section 325E.17; 325E.18; 609.185; 609.19; 609.195; 609.21; 
67.32 	609.221; 609.222; 609.223; 609.2231; 609.24; 609.245; 609.25; 609.255; 609.282; 
67.33 	609.283; 609.322; 609.342, subdivision 1, clauses (a) to (f); 609.343, subdivision 1, 
67.34 	clauses (a) to (f); 609.344, subdivision 1, clauses (a) to (e), and (h) to (j); 609.345, 
67.35 	subdivision 1, clauses (a) to (e), and (h) to (j); 609.352; 609.42; 609.425; 609.466; 
68.1 	609.485; 609.487; 609.52; 609.525; 609.527; 609.528; 609.53; 609.54; 609.551; 609.561; 
68.2 	609.562; 609.563; 609.582; 609.59; 609.595; 609.631; 609.66, subdivision 1e; 609.671, 
68.3 	subdivisions 3, 4, 5, 8, and 12; 609.687; 609.821; 609.825; 609.86; 609.88; 609.89; 
68.4 	609.893; 609.895; 617.246; 617.247; or a gross misdemeanor or felony violation of 
68.5 	section 609.891 or 624.7181; or any violation of section 609.324.
68.6 	(g) "Controlled substance" has the meaning given in section 152.01, subdivision 4.

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

68.8 	Sec. 23. NORTHSTAR CORRIDOR COMMUTER RAIL STATION.
 68.9 	The commissioner of transportation shall incorporate a station located in the city 
68.10 	of Fridley in final design plans and construction of the Northstar Corridor Commuter 
68.11 	Rail Line.

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

68.13 	Sec. 24. APPLICATION.
 68.14 	Sections 11 to 21 apply in the counties of Anoka, Carver, Dakota, Hennepin, 
68.15 	Ramsey, Scott, and Washington.

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

68.17 	Sec. 25.  REPEALER.
 68.18 	(a) Minnesota Statutes 2006, sections 473.123, subdivision 3d; and 473.4461, are 
68.19 	repealed.
68.20 	(b) Laws 1999, chapter 230, section 44, is repealed.

68.21 	ARTICLE 11
68.22 	CREDIT CARD PAYMENTS

68.23 	Section 1. [168.328] VEHICLE-RELATED PAYMENTS BY CREDIT OR DEBIT 
68.24 	CARD.
68.25 	By August 1, 2008, the commissioner of public safety shall establish a system to 
68.26 	allow the department, deputy registrars, and driver's license agents to collect motor vehicle 
68.27 	registration taxes under section 168.013, motor vehicle certificate of titles and related 
68.28 	document fees under section 168A.29, and driver's license and Minnesota identification 
68.29 	card fees under section 171.06, by credit or debit card. The department, with the assistance 
68.30 	of the Departments of Finance and Administration, must enter into a contract with a 
69.1 	vendor to process credit and debit card transactions. The department is authorized to 
69.2 	add an additional fee to the motor vehicle registration taxes authorized under section 
69.3 	168.013, in an amount sufficient to raise an equal amount of revenue to the estimated 
69.4 	credit and debit card processing fees paid to the processing vendor. The additional fee 
69.5 	may not exceed $5. The additional fee may be implemented no earlier than January 1, 
69.6 	2008, and the fees earned prior to August 1, 2008, shall be used to fund any administrative 
69.7 	costs incurred by the department to enter into the agreement with the vendor or costs to 
69.8 	implement the acceptance of credit and debit payments by the department, its deputies, 
69.9 	or agents. The department may elect to not allow credit or debit cards to be used on 
69.10 	transactions exceeding $1,000. The department may choose to limit which credit cards 
69.11 	or debit cards may be accepted for payment. Dealers, registrants of fleet vehicles under 
69.12 	section 168.127, and other registrants designated by the commissioner, if any, are not 
69.13 	allowed to pay by credit or debit card. Motor vehicles with a registered gross vehicle 
69.14 	weight of 26,001 pounds or greater are not subject to fees established in this section. 
69.15 	The department shall consult deputy registrars and driver's license agents during the 
69.16 	establishment of the system and contracting process.