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 highway 
1.10 	bonds; providing for highway construction training and contracting related to 
1.11 	disadvantaged business enterprise program; coordinating special transportation 
1.12 	services statewide and establishing service standards; modifying light-rail 
1.13 	transit governance; authorizing metropolitan council bonding; expanding transit 
1.14 	taxing district; redistributing five percent of highway user tax distribution fund; 
1.15 	adjusting share of highway funds for off-road use; requiring study of system 
1.16 	to allow credit card payments of driver and vehicle service fees; removing 
1.17 	1999 restriction on construction of certain light rail transit facilities, and a 
1.18 	2001 restriction on the transit tax levy authority of the Metropolitan Council; 
1.19 	requiring reports; making technical and clarifying changes; amending Minnesota 
1.20 	Statutes 2006, sections 16A.88; 53C.01, subdivision 2; 161.04, by adding a 
1.21 	subdivision; 161.081; 162.07, subdivision 1, by adding subdivisions; 163.051; 
1.22 	168.011, subdivision 6; 168.013, subdivisions 1, 1a; 168.017, subdivision 3; 
1.23 	168.12, subdivision 5; 168.1255, by adding a subdivision; 168A.29, subdivision 
1.24 	1; 171.02, subdivision 3; 171.06, subdivision 2; 171.07, subdivisions 3a, 11; 
1.25 	171.20, subdivision 4; 171.29, subdivision 2; 174.03, subdivision 9, by adding 
1.26 	subdivisions; 174.24, subdivision 2a; 174.255, by adding a subdivision; 174.29, 
1.27 	by adding subdivisions; 296A.07, subdivision 3; 296A.08, subdivision 2; 
1.28 	296A.18; 297A.64, subdivision 2; 297A.71, by adding a subdivision; 297A.815, 
1.29 	by adding a subdivision; 297A.94; 297B.01, subdivision 8; 297B.09, subdivision 
1.30 	1; 299D.09; 473.166; 473.386, subdivision 3; 473.388, subdivision 4; 473.39, by 
1.31 	adding a subdivision; 473.399; 473.3993, subdivision 3; 473.3994; 473.3997; 
1.32 	473.4051; 473.407, subdivision 1; 473.446, subdivisions 2, 8; 609.531, 
1.33 	subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 
1.34 	168; 174; 296A; 297A; 398A; 473; repealing Minnesota Statutes 2006, sections 
1.35 	174.32; 473.123, subdivision 3d; 473.4461; Laws 1999, chapter 230, section 44.
1.36 	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
	$
	104,614,000
	$
	104,538,000
	$
	209,152,000
	
2.8	Airports
		25,568,000
		25,683,000
		51,251,000
	
2.9	C.S.A.H.
		535,713,000
		579,743,000
		1,115,456,000
	
2.10	M.S.A.S.
		143,849,000
		150,822,000
		294,671,000
	
2.11	Special Revenue
		47,950,000
		49,038,000
		96,988,000
	
2.12	Highway User
		8,938,000
		9,238,000
		18,176,000
	
2.13	Trunk Highway
		1,323,645,000
		1,399,833,000
		2,723,478,000
	
2.14	Total
	$
	2,190,277,000
	$
	2,318,895,000
	$
	4,509,172,000

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
 	$
	1,966,495,000
	$
	2,089,316,000
	
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
	19,486,000
	19,251,000
	
3.1	Airports
	25,518,000
	25,633,000
	
3.2	C.S.A.H.
	535,713,000
	579,743,000
	
3.3	M.S.A.S.
	143,849,000
	150,822,000
	
3.4	Trunk Highway
	1,241,929,000
	1,313,867,000
	
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
	5,195,000
	5,310,000
	
4.7	Trunk Highway
	854,000
	869,000
	
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
	18,813,000
	18,817,000
	
4.13	Trunk Highway
	742,000
	765,000

4.14	(c) Freight

4.15	Appropriations by Fund
	
4.16	General
	358,000
	369,000
	
4.17	Trunk Highway
	 5,042,000
	5,190,000

4.18	(d) Rail
		250,000
		-0-
	
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
		172,283,000 
		177,024,000 
	
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
		723,259,000
		745,913,000
	
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
	529,796,000
	395,471,000
	
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 	Highway 169, within the city of Belle Plaine, 
7.8 	or within one-half mile of the Belle Plaine 
7.9 	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
		217,370,000 
		229,644,000 

7.32	(c) Electronic Communications

8.1	Appropriations by Fund
	
8.2	General
	 9,000
	9,000
	
8.3	Trunk Highway
	4,916,000
	5,060,000
	
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
		535,713,000
		579,743,000
	
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
		143,849,000
		150,822,000
	
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
	39,622,000
	40,521,000

9.13	(b) Buildings

9.14	Appropriations by Fund
	
9.15	General
	56,000
	56,000
	
9.16	Trunk Highway
	16,604,000
	16,675,000
	
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
 	$
	144,054,000 
	$
	149,851,000

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 
	 47,950,000
	49,038,000
	
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
	27,939,000
	28,711,000
	
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. HIGHWAY CONSTRUCTION IN ROCHESTER.
 17.15 	The commissioner of transportation shall proceed without delay to issue to the city 
17.16 	of Rochester the necessary permits that allow the city to complete the construction of a 
17.17 	new folded diamond interchange in the Northeast and Northwest quadrants at marked 
17.18 	Trunk Highway 52 and 65th Street NW in the city of Rochester. The commissioner shall 
17.19 	review the environmental documentation prepared by the city in a timely manner and shall 
17.20 	issue the necessary construction permits without delay upon the issuance of a finding of 
17.21 	no significant impact. The cost of the interchange design, right-of-way acquisition, and 
17.22 	construction shall be the responsibility of the city of Rochester.

17.23 	Sec. 11. FEDERAL FUNDS SPENDING AUTHORITY.
 17.24 	The commissioner of transportation may spend up to $5,000,000 from July 1, 2008, 
17.25 	through June 30, 2013, in federal transit funds for capital assistance to public transit 
17.26 	systems under Minnesota Statutes, section 174.24. This amount is in addition to any 
17.27 	appropriations made by law for this purpose.

17.28 	Sec. 12. COUNTY ROAD 3 OVERPASS TASK FORCE.
 17.29 		Subdivision 1.Task force established. The County Road 3 Overpass Task Force 
17.30 	is established to plan the design, construction, and funding for a Scott County Road 3 
17.31 	overpass over Trunk Highway 169.
18.1 		Subd. 2.Task force membership. The task force is comprised of the following 
18.2 	members:
18.3 	(1) the commissioner of transportation or a designee;
18.4 	(2) the mayor of Belle Plaine or a designee;
18.5 	(3) a Scott County commissioner; and
18.6 	(4) owners of property in the vicinity of the intersection, who may be assessed for 
18.7 	the cost of the overpass, and who shall be appointed by the Scott County commissioner.
18.8 		Subd. 3.Task force determinations. The task force shall determine:
18.9 	(1) the preferred type of overpass or interchange needed at the Trunk Highway 169 
18.10 	intersection with County Road 3;
18.11 	(2) the schedule for beginning construction of the overpass or interchange; and
18.12 	(3) an appropriate cost-sharing agreement involving the state, Scott County, the city 
18.13 	of Belle Plaine, and private developers.
18.14 	The task force shall submit its determinations to the appropriate lead agency, which 
18.15 	shall prepare construction plans consistent with task force determinations.
18.16 		Subd. 4.Traffic control. The commissioner of transportation shall maintain traffic 
18.17 	control signals at the intersection of Trunk Highway 169 and Scott County Road 3, within 
18.18 	the city of Belle Plaine, to allow for the movement of cross-traffic, until construction is 
18.19 	commenced for a Scott County Road 3 overpass bridge over Trunk Highway 169.

18.20 	ARTICLE 2
18.21 	FUEL TAX

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

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

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

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

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

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

19.20 	ARTICLE 3
19.21 	VEHICLE REGISTRATION TAX

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

20.9		FROM
		TO
	
20.10		$ ........0 
		$ ........199.99 
	
20.11		200
		399.99
	
20.12 	and thereafter a series of classes successively set in brackets having a spread of $200 
20.13 	consisting of such number of classes as will permit classification of all vehicles.
20.14 	(f) The base value for purposes of this section shall be the middle point between 
20.15 	the extremes of its class.
20.16 	(g) The registrar shall establish the base value, when new, of every passenger 
20.17 	automobile and hearse registered prior to the effective date of Extra Session Laws 1971, 
20.18 	chapter 31, using list price information published by the manufacturer or any nationally 
20.19 	recognized firm or association compiling such data for the automotive industry. If unable 
20.20 	to ascertain the base value of any registered vehicle in the foregoing manner, the registrar 
20.21 	may use any other available source or method. The registrar shall calculate tax using base 
20.22 	value information available to dealers and deputy registrars at the time the application for 
20.23 	registration is submitted. The tax on all previously registered vehicles shall be computed 
20.24 	upon the base value thus determined taking into account the depreciation provisions of 
20.25 	paragraph (h).
20.26 	(h) The annual additional tax computed upon the base value as provided herein, 
20.27 	during the first and second years year of vehicle life shall be computed upon 100 percent 
20.28 	of the base value; for the second year, 80 percent of such value; for the third and fourth 
20.29 	years year, 90 70 percent of such value; for the fourth year, 60 percent of such value; for 
20.30 	the fifth and sixth years year, 75 50 percent of such value; for the sixth year, 40 percent 
20.31 	of such value; for the seventh year, 60 35 percent of such value; for the eighth year, 40
20.32 	30 percent of such value; for the ninth year, 30 20 percent of such value; for the tenth year, 
20.33 	ten percent of such value; for the 11th and each succeeding year, the sum of $25.
20.34 	In  no event shall the annual additional tax be less than $25. The total tax under this 
20.35 	subdivision shall not exceed $189 for the first renewal period and shall not exceed $99 
20.36 	for subsequent renewal periods. The total tax under this subdivision on any vehicle filing 
21.1 	its initial registration in Minnesota in the second year of vehicle life shall not exceed 
21.2 	$189 and shall not exceed $99 for subsequent renewal periods. The total tax under 
21.3 	this subdivision on any vehicle filing its initial registration in Minnesota in the third or 
21.4 	subsequent year of vehicle life shall not exceed $99 and shall not exceed $99 in any 
21.5 	subsequent renewal period The annual additional tax under this paragraph must not exceed 
21.6 	the annual additional tax that was previously paid or due on that vehicle.
21.7 	(i) As used in this subdivision and section  168.017, the following terms have the 
21.8 	meanings given: "initial registration" means the 12 consecutive months calendar period 
21.9 	from the day of first registration of a vehicle in Minnesota; and "renewal periods" means 
21.10 	the 12 consecutive calendar months periods following the initial registration period. 

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

21.31 	ARTICLE 4
21.32 	LOCAL SALES TAX

21.33 	Section 1. Minnesota Statutes 2006, section 161.04, is amended by adding a 
21.34 	subdivision to read:
22.1 		Subd. 5.Highway spending in metropolitan transportation district. In any year 
22.2 	during which taxes authorized in section 297A.992, subdivision 3, are imposed, and 
22.3 	exclusive of the expenditure of these revenues, the percentage of total trunk highway fund 
22.4 	expenditures attributable to projects in the metropolitan transportation area, within the 
22.5 	meaning of section 297A.992, subdivision 1, must exceed two percentage points less than 
22.6 	the average of the previous five years of trunk highway fund metropolitan transportation 
22.7 	area expenditures.

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

22.9 	Sec. 2. Minnesota Statutes 2006, section 297A.94, is amended to read:
22.10 	297A.94 DEPOSIT OF REVENUES.
22.11 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
22.12 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
22.13 	treasury and credit them to the general fund.
22.14 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
22.15 	account in the special revenue fund if:
22.16 	(1) the taxes are derived from sales and use of property and services purchased for 
22.17 	the construction and operation of an agricultural resource project; and
22.18 	(2) the purchase was made on or after the date on which a conditional commitment 
22.19 	was made for a loan guaranty for the project under section 41A.04, subdivision 3. 
22.20 	The commissioner of finance shall certify to the commissioner the date on which the 
22.21 	project received the conditional commitment. The amount deposited in the loan guaranty 
22.22 	account must be reduced by any refunds and by the costs incurred by the Department of 
22.23 	Revenue to administer and enforce the assessment and collection of the taxes.
22.24 	(c) The commissioner shall deposit the revenues, including interest and penalties, 
22.25 	derived from the taxes imposed on sales and purchases included in section 297A.61, 
22.26 	subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them 
22.27 	as follows: 
22.28 	(1) first to the general obligation special tax bond debt service account in each fiscal 
22.29 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and 
22.30 	(2) after the requirements of clause (1) have been met, the balance to the general 
22.31 	fund.
22.32 	(d) The commissioner shall deposit the revenues, including interest and penalties, 
22.33 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
22.34 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
23.1 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
23.2 	subdivision 5, for the previous calendar year. 
23.3 	(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and 
23.4 	for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and 
23.5 	penalties, transmitted to the commissioner under section 297A.65, must be deposited by 
23.6 	the commissioner in the state treasury as follows: 
23.7 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account 
23.8 	in the game and fish fund, and may be spent only on activities that improve, enhance, or 
23.9 	protect fish and wildlife resources, including conservation, restoration, and enhancement 
23.10 	of land, water, and other natural resources of the state;
23.11 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
23.12 	may be spent only for state parks and trails;
23.13 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
23.14 	may be spent only on metropolitan park and trail grants;
23.15 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
23.16 	may be spent only on local trail grants; and
23.17 	(5) two percent of the receipts must be deposited in the natural resources fund, 
23.18 	and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and 
23.19 	Conservatory, and the Duluth Zoo.
23.20 	(f) The revenue dedicated under paragraph (e) may not be used as a substitute 
23.21 	for traditional sources of funding for the purposes specified, but the dedicated revenue 
23.22 	shall supplement traditional sources of funding for those purposes. Land acquired with 
23.23 	money deposited in the game and fish fund under paragraph (e) must be open to public 
23.24 	hunting and fishing during the open season, except that in aquatic management areas or 
23.25 	on lands where angling easements have been acquired, fishing may be prohibited during 
23.26 	certain times of the year and hunting may be prohibited. At least 87 percent of the money 
23.27 	deposited in the game and fish fund for improvement, enhancement, or protection of fish 
23.28 	and wildlife resources under paragraph (e) must be allocated for field operations.
23.29 	(g) The revenues, including interest and penalties, collected under section 297A.992 
23.30 	must be deposited by the commissioner as provided for in that section.

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

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

27.13 	ARTICLE 5
27.14 	COUNTY WHEELAGE TAX

27.15 	Section 1. Minnesota Statutes 2006, section 163.051, is amended to read:
27.16 	163.051 METROPOLITAN COUNTY WHEELAGE TAX.
27.17 		Subdivision 1.Tax authorized. The board of commissioners of each metropolitan
27.18 	county is authorized to levy by resolution a wheelage tax of $5 for the year 1972 and 
27.19 	each subsequent year thereafter by resolution  $20 each year on each motor vehicle, 
27.20 	except motorcycles as defined in section 169.01, subdivision 4, which is kept in such 
27.21 	county when not in operation and which isthat is domiciled in the county and subject to 
27.22 	annual registration and taxation under chapter 168. The board may provide by resolution 
27.23 	for collection of the wheelage tax by county officials or it may request that the tax be 
27.24 	collected by the state registrar of motor vehicles, and the state registrar of motor vehicles
27.25 	shall collect such the tax on behalf of the county if requested, as provided in subdivision 2
27.26 	provided in the board resolution. 
27.27 		Subd. 2.Collection by registrar of motor vehicles. The wheelage tax levied by 
27.28 	any metropolitan county, if made collectible by the state registrar of motor vehicles, shall 
27.29 	be certified by the county auditor to the registrar not later than August 1 in the year before 
27.30 	the a calendar year or years for which the tax is levied, and the registrar shall collect such
27.31 	the tax with the motor vehicle taxes registration tax on the each  affected vehicles vehicle 
27.32 	for such that  year or years. EveryAn owner and every operator of such a motor vehicle 
27.33 	subject to the wheelage tax shall furnish to the registrar all information requested by the 
27.34 	registrar relating to the wheelage tax. No state motor A vehicle registration tax on any 
27.35 	such motor vehicle for any such year shall may not  be received or deemed paid unless the 
28.1 	applicable wheelage tax is paid therewith. The proceeds of the wheelage tax levied by any 
28.2 	metropolitan county, less any amount retained by the registrar to pay costs of collection of 
28.3 	the wheelage tax, shall be paid to the commissioner of finance and deposited in the state 
28.4 	treasury to the credit of the county wheelage tax fund of each metropolitan county.
28.5 		Subd. 2a.Tax proceeds deposited; costs of collection; appropriation.
 28.6 	Notwithstanding the provisions of any other law, the state registrar of motor vehicles shall 
28.7 	deposit the proceeds of the wheelage tax imposed by subdivision 2, to the credit of the 
28.8 	county wheelage tax road and bridge  fund of each metropolitan county that levies the 
28.9 	wheelage tax. The amount necessary to pay the costs of collection of said collecting the 
28.10 	tax is appropriated to the registrar from the county wheelage tax road and bridge  fund of 
28.11 	each metropolitan county to the state registrar of motor vehicles that levies the tax.
28.12 		Subd. 3.Distribution to metropolitan county; appropriation. On or before April 
28.13 	1 in 1972 and each subsequent year, the commissioner of finance shall issue a warrant in 
28.14 	favor of the treasurer of each metropolitan county for which the registrar has collected a 
28.15 	wheelage tax in the amount of such tax then on hand in the county wheelage tax fund. 
28.16 	There is hereby appropriated from the county wheelage tax fund each year, to each 
28.17 	metropolitan county entitled to payments authorized by this section, sufficient moneys 
28.18 	to make such payments.
28.19 		Subd. 4.Use of tax. The treasurer of each metropolitan county receiving moneys 
28.20 	under subdivision 3 shall deposit such moneys in the county road and bridge fund. The 
28.21 	moneys shall be used for purposes authorized by law which are highway purposes within 
28.22 	the meaning of the Minnesota Constitution, article 14.
28.23 		Subd. 5.Effect on road and bridge levy. The county auditor of each metropolitan 
28.24 	county shall reduce the amount of the property taxes levied pursuant to law in 1973 for 
28.25 	collection in 1974, by the board of commissioners of such county for the county road 
28.26 	and bridge fund, by the following amount: Anoka County, $341,750; Carver County, 
28.27 	$86,725; Dakota County, $386,165; Hennepin County, $2,728,425; Ramsey County, 
28.28 	$1,276,815; Scott County, $104,805; Washington County, $227,220, and shall spread only 
28.29 	the balance thereof on the tax rolls for collection in 1972. The county auditor shall also 
28.30 	reduce the amount of such taxes levied pursuant to law in 1972 and any subsequent year, 
28.31 	for collection in the respective ensuing years, by the amount of wheelage taxes received 
28.32 	by the county in the 12 months immediately preceding such levy.
28.33 		Subd. 6.Metropolitan county defined. "Metropolitan county" means any of the 
28.34 	counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
28.35 		Subd. 7.Offenses; penalties; application of other laws. Any owner or operator 
28.36 	of a motor vehicle who shall willfully give any gives false information relative to the 
29.1 	wheelage tax herein authorized to the registrar of motor vehicles or any metropolitan
29.2 	county, or who shall willfully fail fails or refuse refuses  to furnish any such information, 
29.3 	shall be is guilty of a misdemeanor. Except as otherwise herein provided in this section,
29.4 	the collection and payment of a wheelage tax and all related matters relating thereto shall 
29.5 	beare subject to all provisions of law laws relating to collection and payment of motor 
29.6 	vehicle taxes so far as applicable.

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

29.12 	Sec. 3. Minnesota Statutes 2006, section 168.013, subdivision 1, is amended to read:
29.13 		Subdivision 1.Imposition. Motor vehicles, except as set forth in section  168.012, 
29.14 	using the public streets or highways in the state, and park trailers taxed under subdivision 
29.15 	1j, shall be taxed in lieu of all other taxes thereon, except wheelage taxes, so-called, which 
29.16 	may be imposed by any city or county as provided by law, and except gross earnings 
29.17 	taxes paid by companies subject or made subject thereto, and shall be privileged to 
29.18 	use the public streets and highways, on the basis and at the rate for each calendar year 
29.19 	as hereinafter provided. 

29.20 	ARTICLE 6
29.21 	MOTOR VEHICLE SALES TAX, MOTOR VEHICLE LEASE SALES TAX

29.22 	Section 1. Minnesota Statutes 2006, section 16A.88, is amended to read:
29.23 	16A.88 TRANSIT FUNDS ASSISTANCE FUND.
29.24 		Subdivision 1.Transit assistance fund established. A transit assistance fund is 
29.25 	established within the state treasury. The fund receives money distributed under sections 
29.26 	297A.815, subdivision 3, and 297B.09, subdivision 1, and other money as specified by 
29.27 	law. Money in the fund must be allocated to the greater Minnesota transit account under 
29.28 	subdivision 1a and the metropolitan area transit account under subdivision 2 in the manner 
29.29 	specified in sections 297A.815, subdivision 3, and 297B.09, subdivision 1, and must be 
29.30 	used for transit purposes.
29.31 		Subd. 1a.Greater Minnesota transit fund account. The greater Minnesota transit 
29.32 	fund account is established within the transit assistance fund in the state treasury. Money 
29.33 	in the fund account is annually appropriated to the commissioner of transportation for 
30.1 	assistance to transit systems outside the metropolitan area under section 174.24. Beginning 
30.2 	in fiscal year 2003, The commissioner may use up to $400,000 each year $408,000 in 
30.3 	fiscal year 2008 and $416,000 in fiscal year 2009 and thereafter for administration of the 
30.4 	transit program. The commissioner shall use the fund account for transit operations as 
30.5 	provided in section 174.24 and related program administration. 
30.6 		Subd. 2.Metropolitan area transit fund account. The metropolitan area transit 
30.7 	fund account is established within the transit assistance fund in the state treasury. All 
30.8 	money in the fund account is annually appropriated to the Metropolitan Council for the 
30.9 	funding of transit systems within the metropolitan area under sections 473.384, 473.386,
30.10 	473.387, 473.388, and 473.405 to 473.449. 
30.11 		Subd. 3.Metropolitan area transit appropriation account. The metropolitan 
30.12 	area transit appropriation account is established within the general fund. Money in the 
30.13 	account is to be used for the funding of transit systems in the metropolitan area, subject to 
30.14 	legislative appropriation.

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

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

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

30.22 	Sec. 3. Minnesota Statutes 2006, section 297A.71, is amended by adding a subdivision 
30.23 	to read:
30.24 		Subd. 40.Commuter rail, light rail, and passenger rail; material, supplies, and 
30.25 	equipment. Materials and supplies used or consumed in, and equipment incorporated 
30.26 	into, the construction or improvement of a commuter rail transportation system operated 
30.27 	under sections 174.80 to 174.90; a light rail transit system constructed and operated under 
30.28 	sections 473.3993 to 473.3997 and 473.4051; and, an intercity passenger rail system 
30.29 	are exempt regardless of whether purchased by the owner, contractor, subcontractor, or 
30.30 	builder. This exemption includes railroad cars, engines, rolling stock, station materials, 
30.31 	and related equipment. The tax must be imposed and collected as if the rate under section 
30.32 	297A.62, subdivision 1, applied and then refunded to the political subdivision, regional rail 
30.33 	authority, or state agency that is responsible for construction, operation, and related costs. 

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

31.3 	Sec. 4. Minnesota Statutes 2006, section 297A.815, is amended by adding a 
31.4 	subdivision to read:
31.5 		Subd. 4.Reporting of tax proceeds. A lessor must report taxes collected under 
31.6 	this section separately from any other taxes collected and remitted under this chapter or 
31.7 	chapter 297B.

31.8 	Sec. 5. Minnesota Statutes 2006, section 297A.94, is amended to read:
31.9 	297A.94 DEPOSIT OF REVENUES.
31.10 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
31.11 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
31.12 	treasury and credit them to the general fund.
31.13 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
31.14 	account in the special revenue fund if:
31.15 	(1) the taxes are derived from sales and use of property and services purchased for 
31.16 	the construction and operation of an agricultural resource project; and
31.17 	(2) the purchase was made on or after the date on which a conditional commitment 
31.18 	was made for a loan guaranty for the project under section 41A.04, subdivision 3. 
31.19 	The commissioner of finance shall certify to the commissioner the date on which the 
31.20 	project received the conditional commitment. The amount deposited in the loan guaranty 
31.21 	account must be reduced by any refunds and by the costs incurred by the Department of 
31.22 	Revenue to administer and enforce the assessment and collection of the taxes.
31.23 	(c) The commissioner shall deposit the revenues, including interest and penalties, 
31.24 	derived from the taxes imposed on sales and purchases included in section 297A.61, 
31.25 	subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them 
31.26 	as follows: 
31.27 	(1) first to the general obligation special tax bond debt service account in each fiscal 
31.28 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and 
31.29 	(2) after the requirements of clause (1) have been met, the balance to the general 
31.30 	fund.
31.31 	(d) The commissioner shall deposit the revenues, including interest and penalties, 
31.32 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
31.33 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
32.1 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
32.2 	subdivision 5, for the previous calendar year. 
32.3 	(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and 
32.4 	for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and 
32.5 	penalties, transmitted to the commissioner under section 297A.65, must be deposited by 
32.6 	the commissioner in the state treasury as follows: 
32.7 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account 
32.8 	in the game and fish fund, and may be spent only on activities that improve, enhance, or 
32.9 	protect fish and wildlife resources, including conservation, restoration, and enhancement 
32.10 	of land, water, and other natural resources of the state;
32.11 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
32.12 	may be spent only for state parks and trails;
32.13 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
32.14 	may be spent only on metropolitan park and trail grants;
32.15 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
32.16 	may be spent only on local trail grants; and
32.17 	(5) two percent of the receipts must be deposited in the natural resources fund, 
32.18 	and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and 
32.19 	Conservatory, and the Duluth Zoo.
32.20 	(f) The revenue dedicated under paragraph (e) may not be used as a substitute 
32.21 	for traditional sources of funding for the purposes specified, but the dedicated revenue 
32.22 	shall supplement traditional sources of funding for those purposes. Land acquired with 
32.23 	money deposited in the game and fish fund under paragraph (e) must be open to public 
32.24 	hunting and fishing during the open season, except that in aquatic management areas or 
32.25 	on lands where angling easements have been acquired, fishing may be prohibited during 
32.26 	certain times of the year and hunting may be prohibited. At least 87 percent of the money 
32.27 	deposited in the game and fish fund for improvement, enhancement, or protection of fish 
32.28 	and wildlife resources under paragraph (e) must be allocated for field operations.
32.29 	(g) The revenues, including interest and penalties, collected under section 297A.815 
32.30 	must be deposited as follows:
32.31 	(1) From July 1, 2007, through June 30, 2008, 31.75 percent must be deposited in 
32.32 	the highway user tax distribution fund, and 32 percent must be deposited in the transit 
32.33 	assistance fund and allocated 24 percent to the metropolitan area transit account, and eight 
32.34 	percent to the greater Minnesota transit account. The remaining money must be deposited 
32.35 	in the general fund.
33.1 	(2) From July 1, 2008, through June 30, 2009, 36.75 percent must be deposited in 
33.2 	the highway user tax distribution fund, and 37 percent must be deposited in the transit 
33.3 	assistance fund and allocated 27.75 percent to the metropolitan area transit account, 
33.4 	and 9.25 percent to the greater Minnesota transit account. The remaining money must 
33.5 	be deposited in the general fund.
33.6 	(3) From July 1, 2009, through June 30, 2010, 41.75 percent must be deposited in 
33.7 	the highway user tax distribution fund, and 42 percent must be deposited in the transit 
33.8 	assistance fund and allocated 31.5 percent to the metropolitan area transit account, and 
33.9 	10.5 percent to the greater Minnesota transit account. The remaining money must be 
33.10 	deposited in the general fund.
33.11 	(4) From July 1, 2010, through June 30, 2011, 46.75 percent must be deposited in 
33.12 	the highway user tax distribution fund, and 47 percent must be deposited in the transit 
33.13 	assistance fund and allocated 35.25 percent to the metropolitan area transit account, and 
33.14 	11.75 percent to the greater Minnesota transit account. The remaining money must be 
33.15 	deposited in the general fund.
33.16 	(5) On and after July 1, 2011, 50 percent must be deposited in the highway user tax 
33.17 	distribution fund, and 50 percent must be deposited in the transit assistance fund and 
33.18 	allocated 37.5 percent to the metropolitan area transit account, and 12.5 percent to the 
33.19 	greater Minnesota transit account.

33.20 	Sec. 6. Minnesota Statutes 2006, section 297B.01, subdivision 8, is amended to read:
33.21 		Subd. 8.Purchase price.  (a) "Purchase price" means the total consideration valued 
33.22 	in money for a sale, whether paid in money or otherwise. The purchase price excludes the 
33.23 	amount of a manufacturer's rebate paid or payable to the purchaser. If a motor vehicle 
33.24 	is taken in trade as a credit or as part payment on a motor vehicle taxable under this 
33.25 	chapter, the credit or trade-in value allowed by the person selling the motor vehicle shall 
33.26 	be deducted from the total selling price to establish the purchase price of the vehicle 
33.27 	being sold and the trade-in allowance allowed by the seller shall constitute the purchase 
33.28 	price of the motor vehicle accepted as a trade-in. The purchase price in those instances 
33.29 	where the motor vehicle is acquired by gift or by any other transfer for a nominal or no 
33.30 	monetary consideration shall also include the average value of similar motor vehicles, 
33.31 	established by standards and guides as determined by the motor vehicle registrar. The 
33.32 	purchase price in those instances where a motor vehicle is manufactured by a person who 
33.33 	registers it under the laws of this state shall mean the manufactured cost of such motor 
33.34 	vehicle and manufactured cost shall mean the amount expended for materials, labor, 
33.35 	and other properly allocable costs of manufacture, except that in the absence of actual 
34.1 	expenditures for the manufacture of a part or all of the motor vehicle, manufactured costs 
34.2 	shall mean the reasonable value of the completed motor vehicle.
34.3 	(b) The term "purchase price" shall not include the portion of the value of a motor 
34.4 	vehicle due solely to modifications necessary to make the motor vehicle disability 
34.5 	accessible. 
34.6 	(c) The term "purchase price" shall not include the transfer of a motor vehicle by 
34.7 	way of gift between a husband and wife or parent and child, or to a nonprofit organization 
34.8 	as provided under subdivision 7, paragraph (e), nor shall it include the transfer of a motor 
34.9 	vehicle by a guardian to a ward when there is no monetary consideration and the title to 
34.10 	such vehicle was registered in the name of the guardian, as guardian, only because the 
34.11 	ward was a minor. 
34.12 	(d) The term "purchase price" shall not include the transfer of a motor vehicle as a 
34.13 	gift between a foster parent and foster child. For purposes of this subdivision, a foster 
34.14 	relationship exists, regardless of the age of the child, if (1) a foster parent's home is or was 
34.15 	licensed as a foster family home under Minnesota Rules, parts 9545.0010 to 9545.0260, 
34.16 	and (2) the county verifies that the child was a state ward or in permanent foster care.
34.17 	(e) There shall not be included in "purchase price" the amount of any tax imposed by 
34.18 	the United States upon or with respect to retail sales whether imposed upon the retailer or 
34.19 	the consumer.
34.20 	(f) The document administration fee or documentary fee under section 53C.01, 
34.21 	subdivision 2, must be included in the purchase price.

34.22 	Sec. 7. Minnesota Statutes 2006, section 297B.09, subdivision 1, is amended to read:
34.23 		Subdivision 1.Deposit of revenues. (a) Money collected and received under this 
34.24 	chapter must be deposited as provided in this subdivision.
34.25 	(b) From July 1, 2002, to June 30, 2003, 32 percent of the money collected and 
34.26 	received must be deposited in the highway user tax distribution fund, 20.5 percent must be 
34.27 	deposited in the metropolitan area transit fund under section 16A.88, and 1.25 percent 
34.28 	must be deposited in the greater Minnesota transit fund under section 16A.88. The 
34.29 	remaining money must be deposited in the general fund. 
34.30 	(c) From July 1, 2003, to June 30, 2007, 30 percent of the money collected and 
34.31 	received must be deposited in the highway user tax distribution fund, 21.5 percent must be 
34.32 	deposited in the metropolitan area transit fund under section 16A.88, 1.43 percent must be 
34.33 	deposited in the greater Minnesota transit fund under section 16A.88, 0.65 percent must 
34.34 	be deposited in the county state-aid highway fund, and 0.17 percent must be deposited 
35.1 	in the municipal state-aid street fund. The remaining money must be deposited in the 
35.2 	general fund. 
35.3 	(d) On and after From July 1, 2007, 32through June 30, 2008, 38.25 percent of the 
35.4 	money collected and received must be deposited in the highway user tax distribution 
35.5 	fund, 20.523 percent must be deposited in the metropolitan area transit fund account
35.6 	under section 16A.88, and 1.252.5 percent must be deposited in the greater Minnesota 
35.7 	transit fund account under section 16A.88. The remaining money must be deposited 
35.8 	in the general fund. 
35.9 	(c) From July 1, 2008, through June 30, 2009, 44.25 percent of the money collected 
35.10 	and received must be deposited in the highway user tax distribution fund, 26.5 percent 
35.11 	must be deposited in the metropolitan area transit account under section 16A.88, three 
35.12 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
35.13 	and the remaining money must be deposited in the general fund.
35.14 	(d) From July 1, 2009, through June 30, 2010, 50.25 percent of the money collected 
35.15 	and received must be deposited in the highway user tax distribution fund, 30 percent must 
35.16 	be deposited in the metropolitan area transit account under section 16A.88, 3.5 percent 
35.17 	must be deposited in the greater Minnesota transit account under section 16A.88, and the 
35.18 	remaining money must be deposited in the general fund.
35.19 	(e) From July 1, 2010, through June 30, 2011, 56.25 percent of the money collected 
35.20 	and received must be deposited in the highway user tax distribution fund, 33.75 percent 
35.21 	must be deposited in the metropolitan area transit account under section 16A.88, 3.75 
35.22 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
35.23 	and the remaining money must be deposited in the general fund.
35.24 	(f) On and after July 1, 2011, 60 percent of the money collected and received must 
35.25 	be deposited in the highway user tax distribution fund, 36 percent must be deposited in 
35.26 	the metropolitan area transit account under section 16A.88, and four percent must be 
35.27 	deposited in the greater Minnesota transit account under section 16A.88.

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

35.29 	Sec. 8. Minnesota Statutes 2006, section 473.388, subdivision 4, is amended to read:
35.30 		Subd. 4.Financial assistance. (a) The council must grant the requested financial 
35.31 	assistance if it determines that the proposed service is intended to replace the service to 
35.32 	the applying city or town or combination thereof by the council and that the proposed 
35.33 	service will meet the needs of the applicant at least as efficiently and effectively as the 
35.34 	existing service.
36.1 	(b) The amount of assistance which the council must provide to a system under this 
36.2 	section may not be less than the sum of the amounts determined for each municipality 
36.3 	comprising the system as follows:
36.4 	(1) the transit operating assistance grants received under this subdivision by the 
36.5 	municipality in calendar year 2001 or the tax revenues for transit services levied by the 
36.6 	municipality for taxes payable in 2001, including that portion of the levy derived from 
36.7 	the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of 
36.8 	the municipality's aid under section 273.1398, subdivision 2, attributable to the transit 
36.9 	levy; times 
36.10 	(2) the ratio of (i) the appropriation from the transit fund to the council for nondebt 
36.11 	transit operations an amount equal to 3.623 percent of the state revenues generated from 
36.12 	the taxes imposed under section 297A.815 and chapter 297B for the current fiscal year to 
36.13 	(ii) the total levy certified by the council under section 473.446 and the opt-out transit 
36.14 	operating assistance grants received under this subdivision in calendar year 2001 or the 
36.15 	tax revenues for transit services levied by all replacement service municipalities under 
36.16 	this section for taxes payable in 2001, including that portion of the levy derived from 
36.17 	the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of 
36.18 	homestead and agricultural credit aid under section 273.1398, subdivision 2, attributable 
36.19 	to nondebt transit levies, times 
36.20 	(3) the ratio of (i) the municipality's total taxable market value for taxes payable in 
36.21 	the most recent year for which data is available 2007 divided by the municipality's total 
36.22 	taxable market value for taxes payable in 2001, to (ii) the total taxable market value of 
36.23 	all property in the metropolitan area located in replacement service municipalities for 
36.24 	taxes payable in the most recent year for which data is available 2007 divided by the 
36.25 	total taxable market value of all property in the metropolitan area located in replacement 
36.26 	service municipalities for taxes payable in 2001.
36.27 	(c) The council shall pay the amount to be provided to the recipient from the funds 
36.28 	the council would otherwise use to fund its transit operations receives in the metropolitan 
36.29 	area transit account under section 16A.88.

36.30 	Sec. 9.  REPEALER.
 36.31 	Minnesota Statutes 2006, section 174.32, is repealed.

36.32 	ARTICLE 7
36.33 	COUNTY STATE-AID FUND DISTRIBUTION

36.34 	Section 1. Minnesota Statutes 2006, section 162.07, subdivision 1, is amended to read:
37.1 		Subdivision 1.Formula Apportionment sum and excess sum. After deducting for 
37.2 	administrative costs and for the disaster account and research account and state park roads 
37.3 	as heretofore provided, the remainder of (a) The total sum provided for in section 162.06, 
37.4 	subdivision 1, shall be is identified as the apportionment sum and  the excess sum. shall be 
37.5 	apportioned by the commissioner to the several counties on the basis of the needs of the 
37.6 	counties as determined in accordance with the following formula: 
37.7 	(a) An amount equal to ten percent of the apportionment sum shall be apportioned 
37.8 	equally among the 87 counties.
37.9 	(b) An amount equal to ten percent of the apportionment sum shall be apportioned 
37.10 	among the several counties so that each county shall receive of such amount the 
37.11 	percentage that its motor vehicle registration for the calendar year preceding the one last 
37.12 	past, determined by residence of registrants, bears to the total statewide motor vehicle 
37.13 	registration.
37.14 	(c) An amount equal to 30 percent of the apportionment sum shall be apportioned 
37.15 	among the several counties so that each county shall receive of such amount the percentage 
37.16 	that its total lane-miles of approved county state-aid highways bears to the total lane-miles 
37.17 	of approved statewide county state-aid highways. In 1997 and subsequent years no county 
37.18 	may receive, as a result of an apportionment under this clause based on lane-miles rather 
37.19 	than miles of approved county state-aid highways, an apportionment that is less than its 
37.20 	apportionment in 1996.
37.21 	(d) An amount equal to 50 percent of the apportionment sum shall be apportioned 
37.22 	among the several counties so that each county shall receive of such amount the percentage 
37.23 	that its money needs bears to the sum of the money needs of all of the individual counties; 
37.24 	provided, that the percentage of such amount that each county is to receive shall be 
37.25 	adjusted so that each county shall receive in 1958 a total apportionment at least ten 
37.26 	percent greater than its total 1956 apportionments from the state road and bridge fund; 
37.27 	and provided further that those counties whose money needs are thus adjusted shall 
37.28 	never receive a percentage of the apportionment sum less than the percentage that such 
37.29 	county received in 1958.
37.30 	(b) The excess sum is the sum of: 
37.31 	(1) revenue attributed to that portion of the gasoline excise tax rate in excess of 20 
37.32 	cents per gallon, and to that portion of the excise tax rate for E85, M85, and special fuels 
37.33 	in excess of the energy equivalent of a gasoline tax rate of 20 cents per gallon;
37.34 	(2) revenue attributed to a change in the passenger vehicle registration tax under 
37.35 	section 168.013, imposed on or after July 1, 2007, that exceeds the amount collected in 
37.36 	fiscal year 2007 multiplied by the annual average United States Consumer Price Index 
38.1 	for all urban consumers, United States city average, as determined by the United States 
38.2 	Department of Labor for the previous year, divided by the annual average for calendar 
38.3 	year 2006; and
38.4 	(3) revenue to the county state-aid highway fund attributable to the motor vehicle 
38.5 	sales tax in excess of fiscal year 2007 revenue.
38.6 	(c) The apportionment sum is calculated by subtracting the excess sum from the 
38.7 	remainder of the total sum.

38.8 	Sec. 2. Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision 
38.9 	to read:
38.10 		Subd. 1a.Apportionment sum. (a) The commissioner shall reduce the 
38.11 	apportionment sum by the deductions for administrative costs, disaster account, research 
38.12 	account, and state park road account, and apportion the remainder among the several 
38.13 	counties on the basis of the needs of the counties as provided in paragraphs (b) to (e).
38.14 	(b) An amount equal to ten percent shall be apportioned equally among the 87 
38.15 	counties.
38.16 	(c) An amount equal to ten percent shall be apportioned among the several counties 
38.17 	so that each county shall receive of such amount the percentage that its motor vehicle 
38.18 	registration for the calendar year preceding the one last past, determined by residence of 
38.19 	registrants, bears to the total statewide motor vehicle registration.
38.20 	(d) An amount equal to 30 percent shall be apportioned among the several counties 
38.21 	so that each county shall receive of such amount the percentage that its total lane-miles of 
38.22 	approved county state-aid highways bears to the total lane-miles of approved statewide 
38.23 	county state-aid highways. In 1997 and subsequent years no county may receive, as a result 
38.24 	of an apportionment under this clause based on lane-miles rather than miles of approved 
38.25 	county state-aid highways, an apportionment that is less than its apportionment in 1996.
38.26 	(e) An amount equal to 50 percent shall be apportioned among the several counties 
38.27 	so that each county shall receive of such amount the percentage that its money needs 
38.28 	bears to the sum of the money needs of all of the individual counties provided, that the 
38.29 	percentage of the amount that each county is to receive shall be adjusted so that each 
38.30 	county shall receive in 1958 a total apportionment at least ten percent greater than its total 
38.31 	1956 apportionments from the state road and bridge fund; and provided further that those 
38.32 	counties whose money needs are thus adjusted shall never receive a percentage of the 
38.33 	apportionment sum less than the percentage that the county received in 1958.

39.1 	Sec. 3. Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision 
39.2 	to read:
39.3 		Subd. 1b.Excess sum. (a) The commissioner shall reduce the excess sum by the 
39.4 	deductions for administrative costs, disaster account, research account, and state park road 
39.5 	account, and apportion the remainder among the several counties on the basis of the needs 
39.6 	of the counties as provided in paragraphs (b) and (c).
39.7 	(b) An amount equal to 40 percent must be apportioned among the several counties 
39.8 	so that each county receives of that amount the percentage that its motor vehicle 
39.9 	registration for the calendar year preceding the one last past, determined by residence of 
39.10 	registrants, bears to the total statewide motor vehicle registration.
39.11 	(c) An amount equal to 60 percent must be apportioned among the several counties 
39.12 	so that each county receives of that amount the percentage that its money needs bears to 
39.13 	the sum of the money needs of all of the individual counties.

39.14 	ARTICLE 8
39.15 	DRIVER AND VEHICLE SERVICES FEES

39.16 	Section 1. Minnesota Statutes 2006, section 168.017, subdivision 3, is amended to read:
39.17 		Subd. 3.Exceptions. (a) The registrar shall register all vehicles subject to 
39.18 	registration under the monthly series system for a period of 12 consecutive calendar 
39.19 	months, unless:
39.20 	(1) the application is an original rather than renewal application; or
39.21 	(2) the applicant is a licensed motor vehicle lessor under section 168.27, in which 
39.22 	case the applicant may apply for initial or renewed registration of a vehicle for a period 
39.23 	of four or more months, the month of expiration to be designated by the applicant at the 
39.24 	time of registration. However, to qualify for this exemption, the applicant must pay a $10 
39.25 	administrative fee and present the application to the registrar at St. Paul, or ata designated 
39.26 	deputy registrar offices as the registrar may designate. office. At the end of the initial 
39.27 	registration period, the applicant may only renew the registration on the vehicle for the 
39.28 	remainder of the period prescribed under subdivision 1 had the applicant not utilized the 
39.29 	exception in this subdivision. Upon the renewal of registration, the applicant shall pay 
39.30 	1/12 of the annual tax for each calendar month remaining in the registration period in 
39.31 	addition to a $10 administrative fee. Nothing in this subdivision prohibits the applicant 
39.32 	from purchasing registration for an additional full registration period in conjunction with 
39.33 	the purchase of the remainder portion.
39.34 	(b) In any instance except that of a licensed motor vehicle lessor, the registrar shall 
39.35 	not approve registering the vehicle subject to the application for a period of less than three 
40.1 	months, except when the registrar determines that to do otherwise will help to equalize 
40.2 	the registration and renewal work load of the department.
40.3 	(c) The administrative fee collected under paragraph (a) must be deposited in the 
40.4 	vehicle services operating account in the special revenue fund as specified in section 
40.5 	299A.705.

40.6 	Sec. 2. Minnesota Statutes 2006, section 168.12, subdivision 5, is amended to read:
40.7 		Subd. 5.Additional fee. (a) In addition to any fee otherwise authorized or any tax 
40.8 	otherwise imposed upon any vehicle, the payment of which is required as a condition to 
40.9 	the issuance of any plate or plates, the commissioner shall impose the fee specified in 
40.10 	paragraph (b) that is calculated to cover the cost of manufacturing and issuing the plate 
40.11 	or plates, except for plates issued to disabled veterans as defined in section 168.031 and 
40.12 	plates issued pursuant to section 168.124, 168.125, or 168.27, subdivisions 16 and 17, 
40.13 	for passenger automobiles. The commissioner shall issue graphic design plates only 
40.14 	for vehicles registered pursuant to section 168.017 and recreational vehicles registered 
40.15 	pursuant to section 168.013, subdivision 1g.
40.16 	(b) Unless otherwise specified or exempted by statute, the following plate and 
40.17 	validation sticker fees apply for the original, duplicate, or replacement issuance of a 
40.18 	plate in a plate year:

40.19	Sequential Regular Double Plate
		$
	4.25
	
40.20	Sequential Special Plate-Double
		$
	7.00
	
40.21	Sequential Regular Single Plate
		$
	3.00
	
40.22	Sequential Special Plate-Single
		$
	5.50
	
40.23	Utility Trailer Self-Adhesive Plate
		$
	2.50
	
40.24	Nonsequential Double Plate
		$
	14.00
	
40.25	Nonsequential Single Plate
		$
	10.00
	
40.26	Duplicate Sticker
		$
	1.00

40.27	License Plate 
			Single
		Double
	
40.28		Regular and Disability
		$
	4.50
	$
	6.00
	
40.29		Special
		$
	8.50
	$
	10.00
	
40.30		Personalized (Replacement)
		$
	10.00
	$
	14.00
	
40.31		Collector Category
		$
	13.50
	$
	15.00
	
40.32		Emergency Vehicle Display
		$
	3.00
	$
	6.00
	
40.33		Utility Trailer Self-Adhesive
		$
	2.50
			
40.34	Stickers
						
40.35		Duplicate year
		$
	1.00
	$
	1.00
	
40.36
40.37		International Fuel Tax 
Agreement
		$
	2.50
			
41.1 	(c) For vehicles that require two of the categories above, the registrar shall only 
41.2 	charge the higher of the two fees and not a combined total.

41.3 	Sec. 3. Minnesota Statutes 2006, section 168A.29, subdivision 1, is amended to read:
41.4 		Subdivision 1.Amounts. (a) The department must be paid the following fees:
41.5 	(1) for filing an application for and the issuance of an original certificate of title, the 
41.6 	sum of $5.50$6.25 of which $2.50$3.25 must be paid into the vehicle services operating 
41.7 	account of the special revenue fund under section 299A.705;
41.8 	(2) for each security interest when first noted upon a certificate of title, including the 
41.9 	concurrent notation of any assignment thereof and its subsequent release or satisfaction, 
41.10 	the sum of $2, except that no fee is due for a security interest filed by a public authority 
41.11 	under section 168A.05, subdivision 8;
41.12 	(3) for the transfer of the interest of an owner and the issuance of a new certificate of 
41.13 	title, the sum of $5.50 of which $2.50 must be paid into the vehicle services operating 
41.14 	account of the special revenue fund under section 299A.705;
41.15 	(4) for each assignment of a security interest when first noted on a certificate of title, 
41.16 	unless noted concurrently with the security interest, the sum of $1;
41.17 	(5) for issuing a duplicate certificate of title, the sum of $6.50$7.25 of which $2.50
41.18 	$3.25 must be paid into the vehicle services operating account of the special revenue fund 
41.19 	under section 299A.705.
41.20 	(b) After June 30, 1994, in addition to each of the fees required under paragraph (a), 
41.21 	clauses (1) and (3), the department must be paid $3.50. The additional $3.50 fee collected 
41.22 	under this paragraph must be deposited in the special revenue fund and credited to the 
41.23 	public safety motor vehicle account established in section 299A.70.

41.24 	Sec. 4. Minnesota Statutes 2006, section 171.02, subdivision 3, is amended to read:
41.25 		Subd. 3.Motorized bicycle. (a) A motorized bicycle may not be operated on any 
41.26 	public roadway by any person who does not possess a valid driver's license, unless the 
41.27 	person has obtained a motorized bicycle operator's permit or motorized bicycle instruction 
41.28 	permit from the commissioner of public safety. The operator's permit may be issued to 
41.29 	any person who has attained the age of 15 years and who has passed the examination 
41.30 	prescribed by the commissioner. The instruction permit may be issued to any person who 
41.31 	has attained the age of 15 years and who has successfully completed an approved safety 
41.32 	course and passed the written portion of the examination prescribed by the commissioner.
41.33 	(b) This course must consist of, but is not limited to, a basic understanding of:
41.34 	(1) motorized bicycles and their limitations;
42.1 	(2) motorized bicycle laws and rules;
42.2 	(3) safe operating practices and basic operating techniques;
42.3 	(4) helmets and protective clothing;
42.4 	(5) motorized bicycle traffic strategies; and
42.5 	(6) effects of alcohol and drugs on motorized bicycle operators.
42.6 	(c) The commissioner may adopt rules prescribing the content of the safety course, 
42.7 	examination, and the information to be contained on the permits. A person operating a 
42.8 	motorized bicycle under a motorized bicycle permit is subject to the restrictions imposed 
42.9 	by section 169.974, subdivision 2, on operation of a motorcycle under a two-wheel 
42.10 	instruction permit.
42.11 	(d) The fees for motorized bicycle operator's permits are as follows:

42.12	(1)
	Examination and operator's permit, valid for one year
	$ 66.75
	
42.13	(2)
	Duplicate
	$ 33.75
	
42.14	(3)
	Renewal permit before age 21 and valid until age 21
	$ 99.75
	
42.15	(4)
	Renewal permit age 21 or older and valid for four years
	$1515.75
	
42.16	(5)
	Duplicate of any renewal permit
	$ 4.505.25
	
42.17
42.18	(6)
	Written examination and instruction permit, valid for 30 
days
	$ 66.75

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

42.22
42.23	Classified Driver's 
License
		D-$21.50
	C-$25.50
	B-$32.50
	A-$40.50
	
42.24	Classified Under -21 D.L.
		D-$21.50
	C-$25.50
	B-$32.50
	A-$20.50
	
42.25
42.26	Classified Driver's 
License
		D-$22.25
	C-$26.25
	B-$33.25
	A-$41.25
	
42.27	Classified Under-21 D.L.
		D-$22.25
	C-$26.25
	B-$33.25
	A-$21.25
	
42.28
42.29	Instruction Permit
					$9.50
$10.25
	
42.30
42.31	Provisional License
					$12.50
$13.25
	
42.32
42.33
42.34	Duplicate License or 
duplicate identification 
card
					$11.00
$11.75

43.1
43.2
43.3
43.4
43.5
43.6
43.7
43.8	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
	
43.9 	(b) Notwithstanding paragraph (a), an individual who holds a provisional license and 
43.10 	has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33, 
43.11 	169A.35, or sections 169A.50 to 169A.53, (2) convictions for crash-related moving 
43.12 	violations, and (3) convictions for moving violations that are not crash related, shall have a 
43.13 	$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation" 
43.14 	has the meaning given it in section 171.04, subdivision 1.
43.15 	(c) In addition to the driver's license fee required under paragraph (a), the 
43.16 	commissioner shall collect an additional $4 processing fee from each new applicant 
43.17 	or individual renewing a license with a school bus endorsement to cover the costs for 
43.18 	processing an applicant's initial and biennial physical examination certificate. The 
43.19 	department shall not charge these applicants any other fee to receive or renew the 
43.20 	endorsement.

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

43.30 	Sec. 7. Minnesota Statutes 2006, section 171.07, subdivision 11, is amended to read:
43.31 		Subd. 11.Standby or temporary custodian. (a) Upon the written request of the 
43.32 	applicant and upon payment of an additional fee of $3.50 $4.25, the department shall issue 
43.33 	a driver's license or Minnesota identification card bearing a symbol or other appropriate 
43.34 	identifier indicating that the license holder has appointed an individual to serve as a 
43.35 	standby or temporary custodian under chapter 257B.
44.1 	(b) The request must be accompanied by a copy of the designation executed under 
44.2 	section 257B.04.
44.3 	(c) The department shall maintain a computerized records system of all individuals 
44.4 	listed as standby or temporary custodians by driver's license and identification card 
44.5 	applicants. This data must be released to appropriate law enforcement agencies under 
44.6 	section 13.69. Upon a parent's request and payment of a fee of $3.50 $4.25, the 
44.7 	department shall revise its list of standby or temporary custodians to reflect a change 
44.8 	in the appointment.
44.9 	(d) At the request of the license or cardholder, the department shall cancel the 
44.10 	standby or temporary custodian indication without additional charge. However, this 
44.11 	paragraph does not prohibit a fee that may be applicable for a duplicate or replacement 
44.12 	license or card, renewal of a license, or other service applicable to a driver's license or 
44.13 	identification card.
44.14 	(e) Notwithstanding sections 13.08, subdivision 1, and 13.69, the department 
44.15 	and department employees are conclusively presumed to be acting in good faith when 
44.16 	employees rely on statements made, in person or by telephone, by persons purporting to be 
44.17 	law enforcement and subsequently release information described in paragraph (b). When 
44.18 	acting in good faith, the department and department personnel are immune from civil 
44.19 	liability and not subject to suit for damages resulting from the release of this information.
44.20 	(f) The department and its employees:
44.21 	(1) have no duty to inquire or otherwise determine whether a designation submitted 
44.22 	under this subdivision is legally valid and enforceable; and
44.23 	(2) are immune from all civil liability and not subject to suit for damages resulting 
44.24 	from a claim that the designation was not legally valid and enforceable.
44.25 	(g) Of the fees received by the department under this subdivision:
44.26 	(1) Up to $61,000 received must be deposited in the general fund.
44.27 	(2) All other fees must be deposited in the driver services operating account in the 
44.28 	special revenue fund specified in section 299A.705.

44.29 	Sec. 8. Minnesota Statutes 2006, section 171.20, subdivision 4, is amended to read:
44.30 		Subd. 4.Reinstatement fee. (a) Before the license is reinstated, (1) an individual 
44.31 	whose driver's license has been suspended under section 171.16, subdivisions 2 and 3; 
44.32 	171.175; 171.18; or 171.182, or who has been disqualified from holding a commercial 
44.33 	driver's license under section 171.165, and (2) an individual whose driver's license has 
44.34 	been suspended under section 171.186 and who is not exempt from such a fee, must 
44.35 	pay a fee of $20.
45.1 	(b) Before the license is reinstated, an individual whose license has been suspended 
45.2 	under sections 169.791 to 169.798 must pay a $20 reinstatement fee.
45.3 	(c) When fees are collected by a licensing agent appointed under section 171.061, a 
45.4 	handling charge is imposed in the amount specified under section 171.061, subdivision 4. 
45.5 	The reinstatement fee and surcharge must be deposited in an approved state depository as 
45.6 	directed under section 171.061, subdivision 4.
45.7 	(d) Reinstatement fees collected under paragraph (a) for suspensions under sections 
45.8 	171.16, subdivision 3, and 171.18, subdivision 1, clause (10), must be deposited in the 
45.9 	special revenue fund and are appropriated to the Peace Officer Standards and Training 
45.10 	Board for peace officer training reimbursement to local units of government.
45.11 	(e) A suspension may be rescinded without fee for good cause.

45.12 	Sec. 9. Minnesota Statutes 2006, section 299D.09, is amended to read:
45.13 	299D.09 ESCORT SERVICE; APPROPRIATION; RECEIPTS.
45.14 	Fees charged for escort services provided by the State Patrol are annually 
45.15 	appropriated to the commissioner of public safety to administer and provide these services.
45.16 	The fees charged for services provided by the State Patrol with a vehicle are $73.60 
45.17 	an hour in fiscal year 2008 and $75.76 an hour in fiscal year 2009 and thereafter. The fees 
45.18 	charged for services provided without a vehicle are $54.00 an hour in fiscal year 2008 and 
45.19 	$56.16 an hour in fiscal year 2009 and thereafter.
45.20 	The fees charged for State Patrol flight services are $140 an hour for a fixed wing 
45.21 	aircraft, $490 an hour for a helicopter, and $600 an hour for the Queen Air.

45.22 	ARTICLE 9
45.23 	TRUNK HIGHWAY BONDING

45.24 	Section 1. [296A.083] ANNUAL DEBT SERVICE SURCHARGE.
45.25 	(a) On April 1, 2009, and each April 1 thereafter, the commissioner of finance 
45.26 	shall report to the commissioner of revenue:
45.27 	(1) the amount of debt service forecast to be payable in the next fiscal year 
45.28 	attributable to the trunk highway bonds authorized in sections 2 to 4; and
45.29 	(2) the balance in the trunk highway bond proceeds account forecast to be available 
45.30 	at the close of the current fiscal year.
45.31 	(b) The commissioner of revenue shall compute and publish a surcharge for each 
45.32 	fuel tax provided for in sections 296A.07, subdivision 3, and 296A.08, subdivision 2. The 
45.33 	surcharge must be calculated to raise an amount of money which, when added to the 
45.34 	balance in the trunk highway bond proceeds account, covers the debt service forecast to be 
46.1 	payable in the next fiscal year. The new surcharge must be rounded to the nearest 0.1 cent 
46.2 	and is effective on the next July 1 to June 30.

46.3 	Sec. 2. TRANSPORTATION APPROPRIATIONS.
 46.4 	$200,000,000 is appropriated from the bond proceeds account in the trunk highway 
46.5 	fund to the commissioner of transportation in each of fiscal years 2008 through 2017 for 
46.6 	trunk highway improvements. No more than $30,000,000 of each year's appropriation 
46.7 	may be used by the commissioner for program delivery.
46.8 	Of this amount, in 2008:
46.9 	(1) $4,299,000 is for predesign, design, construction, and restoration of historic 
46.10 	roadside properties on the Great River Road. The commissioner shall consult with the 
46.11 	Minnesota Mississippi River Parkway Commission to determine project priorities;
46.12 	(2) $20,673,000 is to the commissioner of transportation to design, construct, furnish, 
46.13 	and equip a new Department of Transportation district headquarters facility in Mankato; 
46.14 	(3) $12,715,000 is appropriated to the commissioner of administration to repair and 
46.15 	renovate the exterior of the Department of Transportation Building at 395 John Ireland 
46.16 	Boulevard in St. Paul; and
46.17 	(4) $40,000,000 is for construction of interchanges involving a trunk highway, 
46.18 	where the interchange will promote economic development, increase employment, relieve 
46.19 	growing traffic congestion, and promote traffic safety.

46.20 	Sec. 3. FINANCE APPROPRIATION.
 46.21 	$200,000 is appropriated from the bond proceeds account in the trunk highway 
46.22 	fund to the commissioner of finance in each of fiscal years 2008 through 2017 for bond 
46.23 	sale expenses under Minnesota Statutes, sections 16A.641, subdivision 8, and 167.50, 
46.24 	subdivision 4.

46.25 	Sec. 4. BOND SALE AUTHORIZATION.
 46.26 	To provide the money appropriated in this article from the bond proceeds account 
46.27 	in the trunk highway fund, the commissioner of finance shall sell and issue bonds of the 
46.28 	state in an amount up to $2,002,000,000 in the manner, upon the terms, and with the 
46.29 	effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota 
46.30 	Constitution, article XIV, section 11, at the times and in the amounts requested by the 
46.31 	commissioner of transportation. The proceeds of the bonds, except accrued interest and 
46.32 	any premium received from the sale of the bonds, must be deposited in the bond proceeds 
46.33 	account in the trunk highway fund.

47.1 	Sec. 5. PRIORITY FOR PROJECTS WITH FEDERAL MATCH.
 47.2 	In each year of this funding authorization, the commissioner must give priority to 
47.3 	trunk highway projects with a federal match, and must maximize the availability and 
47.4 	use of federal funds.

47.5 	ARTICLE 10
47.6 	TRANSPORTATION STATUTORY CHANGES

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

47.19 	Sec. 2. Minnesota Statutes 2006, section 161.081, is amended to read:
47.20 	161.081 HIGHWAY USER TAX, DISTRIBUTION, INVESTMENT.
47.21 		Subdivision 1.Distribution of five percent. (a) Pursuant to article 14, section 5, of 
47.22 	the Constitution, five percent of the net highway user tax distribution fund is set aside, and 
47.23 	apportioned to the county state-aid highway fund.
47.24 	(b) That apportionment is further distributed as follows:
47.25 	(1) 30.5 percent to the town road account created in section 162.081; 
47.26 	(2) 16 percent to the town bridge account, which is created in the state treasury; and
47.27 	(3) 5.5 percent to the municipal turnback account, which is created in the state 
47.28 	treasury for restoration of trunk highways that have reverted or that will revert to cities;
47.29 	(4) 33.5 percent to the county turnback account, which is created in the state treasury 
47.30 	for restoration of trunk highways that have reverted or will revert to counties; and
47.31 	(5)53.514.5 percent to the flexible highway account created in subdivision 3.
48.1 	For purposes of this subdivision, "restoration" means the level of effort required to improve 
48.2 	the route that will be turned back to an acceptable condition as determined by agreement 
48.3 	made between the commissioner and the county or city before the route is turned back.
48.4 		Subd. 2.Investment. Upon the request of the commissioner, money in the highway 
48.5 	user tax distribution fund shall be invested by the State Board of Investment in those 
48.6 	securities authorized for that purpose in section 11A.21. All interest and profits from the 
48.7 	investments must be credited to the highway user tax distribution fund. The commissioner 
48.8 	of finance shall be the custodian of all securities purchased under this section. 
48.9 		Subd. 3.Flexible highway account; turnback accounts. (a) The flexible highway 
48.10 	account is created in the state treasury. Money in the account maymust be used either 
48.11 	for the restoration of former trunk highways that have reverted to counties or to statutory 
48.12 	or home rule charter cities or for regular trunk highway purposessafety improvements 
48.13 	on trunk highways, county highways, municipal highways or streets, or for routes of 
48.14 	regional significance.
48.15 	(b) For purposes of this subdivision, "restoration" means the level of effort required 
48.16 	to improve the route that will be turned back to an acceptable condition as determined 
48.17 	by agreement made between the commissioner and the county or city before the route 
48.18 	is turned back.
48.19 	(c) The commissioner shall review the need for funds to restore highways that have 
48.20 	been or will be turned back and the need for funds for the trunk highway system. The 
48.21 	commissioner shall determine, on a biennial basis, the percentage of this flexible account 
48.22 	to be used for county turnbacks, for municipal turnbacks, and for regular trunk highway 
48.23 	projects safety improvements on trunk highways, county highways, municipal highways 
48.24 	or streets, and for routes of regional significance. The commissioner shall make this 
48.25 	determination only after meeting and holding discussions with committees selected by the 
48.26 	statewide associations of both county commissioners and municipal officials.
48.27 	(d) Money that will be used for the restoration of trunk highways that have reverted 
48.28 	or that will revert to cities must be deposited in the municipal turnback account, which is 
48.29 	created in the state treasury.
48.30 	(e) Money that will be used for the restoration of trunk highways that have reverted 
48.31 	or that will revert to counties must be deposited in the county turnback account, which is 
48.32 	created in the state treasury.
48.33 	(c) Money that will be used for safety improvements must be deposited in the 
48.34 	highway safety improvement account, which is created in the state treasury to be used on 
48.35 	the trunk highway system or as grants to statutory or home rule charter cities, towns, and 
48.36 	counties to assist in paying the costs of constructing or reconstructing trunk highways, city 
49.1 	streets, county highways, or town roads to reduce crashes, deaths, injuries, and property 
49.2 	damage.
49.3 	(f)(d) Money that will be used for routes of regional significance must be deposited 
49.4 	in the routes of regional significance account, which is created in the state treasury, and 
49.5 	used as grants to statutory or home rule charter cities, towns, and counties to assist in 
49.6 	paying the costs of constructing or reconstructing city streets, county highways, or town 
49.7 	roads with statewide or regional significance that have not been fully funded through 
49.8 	other state, federal, or local funding sources.
49.9 	(e) As part of each biennial budget submission to the legislature, the commissioner 
49.10 	shall describe how the money in the flexible highway account will be apportioned among 
49.11 	the county turnback account, the municipal turnback account, and the trunk highway fund
49.12 	between the highway safety improvement account and the routes of regional significance 
49.13 	account.
49.14 	(g) Money apportioned from the flexible highway account to the trunk highway fund 
49.15 	must be used for state road construction and engineering costs.

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

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

49.24 	Sec. 4. Minnesota Statutes 2006, section 171.29, subdivision 2, is amended to read:
49.25 		Subd. 2.Reinstatement fees and surcharges allocated and appropriated. (a) 
49.26 	An individual whose driver's license has been revoked as provided in subdivision 1, 
49.27 	except under section 169A.52, 169A.54, or 609.21, must pay a $30 fee before the driver's 
49.28 	license is reinstated.
49.29 	(b) A person whose driver's license has been revoked as provided in subdivision 
49.30 	1 under section 169A.52, 169A.54, or 609.21, must pay a $250 fee plus a $40 $430
49.31 	surcharge before the driver's license is reinstated, except as provided in paragraph (f). 
49.32 	Beginning July 1, 2002, the surcharge is $145. Beginning July 1, 2003, the surcharge is 
49.33 	$430. The $250 fee is to be credited as follows:
50.1 	(1) Twenty percent must be credited to the driver services operating account in the 
50.2 	special revenue fund as specified in section 299A.705.
50.3 	(2) Sixty-seven percent must be credited to the general fund.
50.4 	(3) Eight percent must be credited to a separate account to be known as the Bureau 
50.5 	of Criminal Apprehension account. Money in this account may be appropriated to the 
50.6 	commissioner of public safety and the appropriated amount must be apportioned 80 percent 
50.7 	for laboratory costs and 20 percent for carrying out the provisions of section 299C.065.
50.8 	(4) Five percent must be credited to a separate account to be known as the vehicle 
50.9 	forfeiture account, which is created in the special revenue fund. The money in the account 
50.10 	is annually appropriated to the commissioner for costs of handling vehicle forfeitures.
50.11 	(c) The revenue from $50 of each the surcharge, or $25 for each year of 
50.12 	reinstatement under paragraph (f), must be credited to a separate account to be known as 
50.13 	the traumatic brain injury and spinal cord injury account. The money in the account is 
50.14 	annually appropriated to the commissioner of health to be used as follows: 83 percent 
50.15 	for contracts with a qualified community-based organization to provide information, 
50.16 	resources, and support to assist persons with traumatic brain injury and their families to 
50.17 	access services, and 17 percent to maintain the traumatic brain injury and spinal cord 
50.18 	injury registry created in section 144.662. For the purposes of this paragraph, a "qualified 
50.19 	community-based organization" is a private, not-for-profit organization of consumers of 
50.20 	traumatic brain injury services and their family members. The organization must be 
50.21 	registered with the United States Internal Revenue Service under section 501(c)(3) as a 
50.22 	tax-exempt organization and must have as its purposes:
50.23 	(1) the promotion of public, family, survivor, and professional awareness of the 
50.24 	incidence and consequences of traumatic brain injury;
50.25 	(2) the provision of a network of support for persons with traumatic brain injury, 
50.26 	their families, and friends;
50.27 	(3) the development and support of programs and services to prevent traumatic 
50.28 	brain injury;
50.29 	(4) the establishment of education programs for persons with traumatic brain injury; 
50.30 	and
50.31 	(5) the empowerment of persons with traumatic brain injury through participation 
50.32 	in its governance.
50.33 	A patient's name, identifying information, or identifiable medical data must not be 
50.34 	disclosed to the organization without the informed voluntary written consent of the patient 
50.35 	or patient's guardian or, if the patient is a minor, of the parent or guardian of the patient.
51.1 	(d) The remainder of the surcharge must be credited to a separate account to be 
51.2 	known as the remote electronic alcohol-monitoring program account. The commissioner 
51.3 	shall transfer the balance of this account to the commissioner of finance on a monthly 
51.4 	basis for deposit in the general fund.
51.5 	(e) When these fees are collected by a licensing agent, appointed under section 
51.6 	171.061, a handling charge is imposed in the amount specified under section 171.061, 
51.7 	subdivision 4. The reinstatement fees and surcharge must be deposited in an approved 
51.8 	depository as directed under section 171.061, subdivision 4.
51.9 	(f) A person whose driver's license has been revoked as provided in subdivision 1 
51.10 	under section 169A.52 or 169A.54 and who the court certifies as being financially eligible 
51.11 	for a public defender under section 611.17, may choose to pay 50 percent of the total 
51.12 	amount of the surcharge and fee required under paragraph (b) to reinstate the person's 
51.13 	driver's license, provided the person meets all other requirements of reinstatement. If a 
51.14 	person chooses to pay 50 percent of the total, the driver's license must expire after two 
51.15 	years. The person must pay an additional 50 percent of the total to extend the license for 
51.16 	an additional two years, provided the person is otherwise still eligible for the license. After 
51.17 	this final payment of the surcharge and fee, the license may be renewed on a standard 
51.18 	schedule, as provided under section 171.27. A handling charge may be imposed for each 
51.19 	installment payment.
51.20 	(g) Any person making installment payments under paragraph (f), whose driver's 
51.21 	license subsequently expires, or is canceled, revoked, or suspended before payment of 
51.22 	100 percent of the surcharge and fee, must pay the outstanding balance due for the initial 
51.23 	reinstatement before the driver's license is subsequently reinstated. Upon payment of 
51.24 	the outstanding balance due for the initial reinstatement, the person may pay any new 
51.25 	surcharge and fee imposed under paragraph (b) in installment payments as provided 
51.26 	under paragraph (f).

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

51.28 	Sec. 5. Minnesota Statutes 2006, section 174.03, subdivision 9, is amended to read:
51.29 		Subd. 9.Forecast of revenues and expenditures. In cooperation with the 
51.30 	Department of Finance and as required by section 16A.103, the commissioner shall 
51.31 	prepare in February and November of each year a forecast of highway user tax distribution 
51.32 	fund and trunk highway fund revenues and expenditures. The forecast must include an 
51.33 	analysis of economic information and the potential impact on highway user fund revenues, 
51.34 	historical growth rate information, and other variables affecting revenue assumptions and 
51.35 	forecasted future growth rates. The forecast must include an analysis of trunk highway 
52.1 	bonding and the necessary debt service payments, and assumptions regarding federal 
52.2 	transportation funds. The commissioner shall review the forecast information with the 
52.3 	chairs of the senate and house of representatives committees with jurisdiction over finance, 
52.4 	ways and means, and transportation finance and with legislative fiscal staff no later than 
52.5 	two weeks beforeone week following the release of the forecast is released and shall 
52.6 	inform the chairs and staff of changes made from previous forecasts.

52.7 	Sec. 6. Minnesota Statutes 2006, section 174.03, is amended by adding a subdivision 
52.8 	to read:
52.9 		Subd. 10.Highway construction training. (a) The commissioner of transportation 
52.10 	shall utilize the maximum feasible amount of all federal funds available to this state 
52.11 	under United States Code, title 23, section 140, paragraph (b), to develop, conduct, and 
52.12 	administer highway construction training, including skill improvement programs.
52.13 	(b) The commissioner of transportation must report by February 1 of each 
52.14 	odd-numbered year to the house of representatives and senate committees having 
52.15 	jurisdiction over transportation policy and finance concerning the commissioner's 
52.16 	compliance with paragraph (a). The report must, with respect to each of the two previous 
52.17 	calendar years:
52.18 	(1) describe the highway construction training and skill improvement programs the 
52.19 	commissioner has conducted and administered;
52.20 	(2) analyze the results of the commissioner's training programs;
52.21 	(3) state the amount of federal funds available to this state under United States Code, 
52.22 	title 23, section 140, paragraph (b); and
52.23 	(4) identify the amount spent by the commissioner in conducting and administering 
52.24 	the programs.

52.25 	Sec. 7. Minnesota Statutes 2006, section 174.03, is amended by adding a subdivision 
52.26 	to read:
52.27 		Subd. 11.Disadvantaged business enterprise program. (a) The commissioner 
52.28 	shall include in each contract that is funded at least in part by federal funds, a sanction 
52.29 	for each contractor who does not meet the established project disadvantaged business 
52.30 	enterprise goal or demonstrate good faith effort to meet the goal.
52.31 	(b) The commissioner of transportation shall report by February 1 of each 
52.32 	odd-numbered year to the house of representatives and senate committees having 
52.33 	jurisdiction over transportation policy and finance concerning the commissioner's 
53.1 	disadvantaged business enterprise program. The report must, with respect to each of 
53.2 	the two previous calendar years:
53.3 	(1) state the department's annual overall goal, compared with the percentage attained;
53.4 	(2) explain the methodology, applicable facts, and public participation used to 
53.5 	establish the overall goal;
53.6 	(3) describe good faith efforts to meet the goal, if the goal was not attained;
53.7 	(4) describe actions to address overconcentration of disadvantaged business 
53.8 	enterprises in certain types of work;
53.9 	(5) state the number of contracts that included disadvantaged business enterprise 
53.10 	goals, the number of contractors that met established disadvantaged business enterprise 
53.11 	goals, and sanctions imposed for lack of good faith effort; and
53.12 	(6) describe contracts with no disadvantaged business enterprise goals, and, of 
53.13 	those, state number of contracts and amount of each contract with targeted groups under 
53.14 	section 16C.16.

53.15 	Sec. 8. Minnesota Statutes 2006, section 174.24, subdivision 2a, is amended to read:
53.16 		Subd. 2a.Eligible activities. Activities eligible for assistance under the program 
53.17 	include but are not limited to:
53.18 	(1) planning and engineering design for transit services and facilities;
53.19 	(2) capital assistance to purchase or refurbish transit vehicles and other capital 
53.20 	expenditures necessary to provide a transit service;
53.21 	(3) operating assistance as provided under subdivision 3b; and
53.22 	(4) partnership creation to coordinate and supplement services of county, local, and 
53.23 	private transit providers;
53.24 	(5) design and operation of regional call centers; and
53.25 	(6) other assistance for public transit services that furthers the purposes of section 
53.26 	174.21.

53.27 	Sec. 9. Minnesota Statutes 2006, section 174.255, is amended by adding a subdivision 
53.28 	to read:
53.29 		Subd. 1a.Service standard. The commissioner shall require any paratransit project 
53.30 	that serves disabled individuals and receives assistance under section 174.24 to allow 
53.31 	passengers to schedule trips up to four days in advance.

53.32 	EFFECTIVE DATE. This section is effective January 1, 2010.

54.1 	Sec. 10. Minnesota Statutes 2006, section 174.29, is amended by adding a subdivision 
54.2 	to read:
54.3 		Subd. 4.Supplementary paratransit. The commissioner shall facilitate the 
54.4 	creation of partnerships among paratransit providers, including, but not limited to, medical 
54.5 	assistance transportation providers, to supplement and coordinate with available county 
54.6 	and local transit service.

54.7 	Sec. 11. Minnesota Statutes 2006, section 174.29, is amended by adding a subdivision 
54.8 	to read:
54.9 		Subd. 5.Intercounty service. The commissioner shall require providers of 
54.10 	service to enter into regional intercounty service agreements with adjacent counties. 
54.11 	The commissioner, in cooperation with state agencies that assist, provide, reimburse, or 
54.12 	regulate special transportation services, shall establish a reimbursement mechanism to 
54.13 	facilitate reimbursement for intercounty trips.

54.14 	EFFECTIVE DATE. This section is effective January 1, 2010.

54.15 	Sec. 12. Minnesota Statutes 2006, section 174.29, is amended by adding a subdivision 
54.16 	to read:
54.17 		Subd. 6.One-stop call centers. The commissioner shall promote, support, and 
54.18 	facilitate the establishment and operation of one-stop regional call centers that assist 
54.19 	callers in arranging the most efficient and cost-effective available rides while meeting 
54.20 	passengers' needs for special equipment.

54.21 	EFFECTIVE DATE. This section is effective January 1, 2010.

54.22 	Sec. 13. [174.56] REPORT ON MAJOR HIGHWAY PROJECTS.
54.23 		Subdivision 1.Report required. The commissioner of transportation shall submit a 
54.24 	report on January 15, 2008, and on January 15 of each year thereafter, on the status of 
54.25 	major highway projects under construction or planned during the year of the report and for 
54.26 	the ensuing 15 years. For purposes of this section, a "major highway project" is a highway 
54.27 	project that has a total cost for all segments that the commissioner estimates at the time 
54.28 	of the report to be at least $10,000,000.
54.29 		Subd. 2.Report contents. For each major highway project the report must include:
54.30 	(1) a description of the project sufficient to specify its scope and location;
54.31 	(2) a history of the project, including, but not limited to, previous official actions 
54.32 	by the department or the appropriate area transportation partnership, or both, the date 
55.1 	on which the project was first included in the state transportation improvement plan, 
55.2 	the cost of the project at that time, the dates of environmental approval, the dates of 
55.3 	municipal approval, the date of final geometric layout, and the date of establishment of 
55.4 	any construction limits;
55.5 	(3) the project's priority listing or rank within its construction district, if any, as 
55.6 	well as the reasons for that listing or rank, the criteria used in prioritization or rank, any 
55.7 	changes in that prioritization or rank since the project was first included in a department 
55.8 	work plan, and the reasons for those changes; and
55.9 	(4) past and potential future reasons for delay in letting or completing the project.
55.10 		Subd. 3.Department resources. The commissioner shall prepare and submit the 
55.11 	report under this section with existing department staff and resources.

55.12 	Sec. 14. Minnesota Statutes 2006, section 296A.18, is amended to read:
55.13 	296A.18 APPORTIONMENT OF TAX; DEPOSIT OF PROCEEDS.
55.14 		Subdivision 1.Intent; gasoline use. All gasoline received in this state and all 
55.15 	gasoline produced in or brought into this state except aviation gasoline and marine 
55.16 	gasoline shall be determined to be intended for use in motor vehicles in this state.
55.17 		Subd. 2.Motorboat. Approximately 1-1/21.695 percent of all gasoline received 
55.18 	in this state and 1-1/2 percent of all gasoline produced or brought into this state, except 
55.19 	gasoline used for aviation purposes, is being used as fuel for the operation of motorboats 
55.20 	on the waters of this state and of the total revenue derived from the imposition of the 
55.21 	gasoline fuel tax for uses other than for aviation purposes, 1-1/2 percent of the revenue is 
55.22 	the amount of tax on fuel used in motorboats operated on the waters of this state. The 
55.23 	amount of unrefunded tax paid on gasoline used for motor boat purposes as computed 
55.24 	in this chapter shall be paid into the state treasury and credited to a water recreation 
55.25 	account in the special revenue fund for acquisition, development, maintenance, and 
55.26 	rehabilitation of sites for public access and boating facilities on public waters; lake and 
55.27 	river improvement; and boat and water safety.
55.28 		Subd. 3.Snowmobile. Approximately one1.13 percent of all gasoline received 
55.29 	in and produced or brought into this state, except gasoline used for aviation purposes, is 
55.30 	being used as fuel for the operation of snowmobiles in this state, and of the total revenue 
55.31 	derived from the imposition of the gasoline fuel tax for uses other than for aviation 
55.32 	purposes, one percent of such revenues is the amount of tax on fuel used in snowmobiles 
55.33 	operated in this state.
55.34 		Subd. 4.All-terrain vehicle. Approximately 0.150.17 of one percent of all gasoline 
55.35 	received in or produced or brought into this state, except gasoline used for aviation 
56.1 	purposes, is being used for the operation of all-terrain vehicles in this state, and of the total 
56.2 	revenue derived from the imposition of the gasoline fuel tax, 0.15 of one percent is the 
56.3 	amount of tax on fuel used in all-terrain vehicles operated in this state.
56.4 		Subd. 5.Off-highway motorcycles. Approximately 0.0460.052 of one percent of 
56.5 	all gasoline received or produced in or brought into this state, except gasoline used for 
56.6 	aviation purposes, is being used for the operation of off-highway motorcycles in this state, 
56.7 	and of the total revenue derived from the imposition of the gasoline fuel tax for uses other 
56.8 	than for aviation purposes, 0.046 of one percent is the amount of tax on fuel used in 
56.9 	off-highway motorcycles operated in this state.
56.10 		Subd. 6.Off-road vehicle. Approximately 0.1640.185 of one percent of all 
56.11 	gasoline received or produced in or brought into this state, except gasoline used for 
56.12 	aviation purposes, is being used for the off-road operation of off-road vehicles, as defined 
56.13 	in section 84.797, in this state, and of the total revenue derived from the imposition of the 
56.14 	gasoline fuel tax for uses other than aviation purposes, 0.164 of one percent is the amount 
56.15 	of tax on fuel used for off-road operation of off-road vehicles in this state. 
56.16 		Subd. 7.Forest road. Approximately 0.1160.131 percent of the total annual 
56.17 	unrefunded revenue from the gasoline fuel tax on all gasoline and special fuel received 
56.18 	in, produced, or brought into this state, except gasoline and special fuel used for aviation 
56.19 	purposes, is derived from the operation of motor vehicles on state forest roads and county 
56.20 	forest access roads. This revenue is appropriated from the highway user tax distribution 
56.21 	fund and must be transferred and credited in equal installments on July 1 and January 
56.22 	1 to the state forest road account established in section 89.70. Of this amount, 0.0605
56.23 	0.0683 percent is annually derived from motor vehicles operated on state forest roads and 
56.24 	0.05550.0627 percent is annually derived from motor vehicles operated on county forest 
56.25 	access roads in this state. An amount equal to 0.05550.0627 percent of the unrefunded 
56.26 	revenue must be annually transferred to counties for the management and maintenance of 
56.27 	county forest roads. 
56.28 		Subd. 8.Airports. The revenues derived from the excise taxes on aviation gasoline 
56.29 	and on special fuel received, sold, stored, or withdrawn from storage as substitutes for 
56.30 	aviation gasoline, shall be paid into the state treasury and credited to the state airports 
56.31 	fund. There is hereby appropriated such sums as are needed to carry out the provisions 
56.32 	of this subdivision.
56.33 		Subd. 9.Computation of unrefunded tax. The amount of unrefunded tax shall be 
56.34 	a sum equal to 1-1/2 percent of all revenues derived from the excise taxes on gasoline, 
56.35 	except on gasoline used for aviation purposes, together with interest thereon and penalties 
56.36 	for delinquency in payment, paid or collected pursuant to the provisions of this chapter. 
57.1 	The amount of such tax shall be computed for each six-month period and shall be paid 
57.2 	into the state treasury on November 1 and June 1 following each six-month period.

57.3 	Sec. 15. [398A.10] TRANSIT FUNDING.
57.4 		Subdivision 1.Capital costs. A county regional railroad authority may not 
57.5 	contribute more than ten percent of the capital costs on a transit project. For purposes of 
57.6 	this section, "transit project" includes, but is not limited to, light rail transit, bus, bus 
57.7 	rapid transit, and commuter rail.
57.8 		Subd. 2.Operating and maintenance costs. A county regional railroad authority 
57.9 	may not contribute any funds to pay the operating and maintenance costs for a transit 
57.10 	project, as defined in subdivision 1. If a county regional railroad authority is contributing 
57.11 	funds for operating and maintenance costs on a transit project on the date of the enactment 
57.12 	of this act, the authority may continue to contribute funds for these purposes until January 
57.13 	1, 2009.

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

57.15 	Sec. 16. Minnesota Statutes 2006, section 473.166, is amended to read:
57.16 	473.166 CONTROLLED ACCESS; TRANSIT FIXED-GUIDEWAY;
57.17 	APPROVAL.
57.18 	Before acquiring land for or constructing a controlled access highway or transit 
57.19 	fixed-guideway in the area, the state Transportation Department or local government 
57.20 	unit proposing the acquisition or construction shall submit to the council a statement 
57.21 	describing the proposed project. The statement must be in the form and detail required by 
57.22 	the council. The council shall review the statement to ascertain its consistency with its 
57.23 	policy plan and the development guide. No project may be undertaken unless the council 
57.24 	determines that it is consistent with the policy plan. This approval is in addition to the 
57.25 	requirements of any other statute, ordinance or rule.

57.26 	Sec. 17. Minnesota Statutes 2006, section 473.386, subdivision 3, is amended to read:
57.27 		Subd. 3.Duties of council. In implementing the special transportation service, the 
57.28 	council shall:
57.29 	(a) encourage participation in the service by public, private, and private nonprofit 
57.30 	providers of special transportation currently receiving capital or operating assistance 
57.31 	from a public agency;
58.1 	(b) contract with public, private, and private nonprofit providers that have 
58.2 	demonstrated their ability to effectively provide service at a reasonable cost;
58.3 	(c) encourage individuals using special transportation to use the type of service 
58.4 	most appropriate to their particular needs;
58.5 	(d) ensure that all persons providing special transportation service receive equitable 
58.6 	treatment in the allocation of the ridership;
58.7 	(e) require special transit service providers to allow passengers to schedule trips up 
58.8 	to four days in advance and  encourage shared rides to the greatest extent practicable;
58.9 	(f) encourage public agencies that provide transportation to eligible individuals as a 
58.10 	component of human services and educational programs to coordinate with this service 
58.11 	and to allow reimbursement for transportation provided through the service at rates that 
58.12 	reflect the public cost of providing that transportation;
58.13 	(g) establish criteria to be used in determining individual eligibility for special 
58.14 	transportation services;
58.15 	(h) consult with the Transportation Accessibility Advisory Committee in a timely 
58.16 	manner before changes are made in the provision of special transportation services, 
58.17 	including, but not limited to, changes in policies affecting the matters subject to hearing 
58.18 	under subdivision 2;
58.19 	(i) provide for effective administration and enforcement of council policies and 
58.20 	standards; 
58.21 	(j) annually evaluate providers of special transportation service to ensure compliance 
58.22 	with the standards established for the program; and 
58.23 	(k) ensure that, taken as a whole including contracts with public, private, and private 
58.24 	nonprofit providers, the geographic coverage area of the special transportation service is 
58.25 	continuous within the boundaries of the transit taxing district, as defined as of March 1, 
58.26 	2006, in section 473.446, subdivision 2.

58.27 	EFFECTIVE DATE. This section is effective January 1, 2010.

58.28 	Sec. 18. Minnesota Statutes 2006, section 473.39, is amended by adding a subdivision 
58.29 	to read:
58.30 		Subd. 1m.OBLIGATIONS. After July 1, 2007, in addition to other authority in 
58.31 	this section, the council may issue certificates of indebtedness, bonds, or other obligations 
58.32 	under this section in an amount not exceeding $44,000,000 for capital expenditures as 
58.33 	prescribed in the council's regional transit master plan and transit capital improvement 
58.34 	program and for related costs, including the costs of issuance and sale of the obligations.

59.1 	Sec. 19. Minnesota Statutes 2006, section 473.399, is amended to read:
59.2 	473.399 TRANSIT WAYS; LIGHT RAIL TRANSIT AND COMMUTER RAIL 
59.3 	PLANNING IN THE METROPOLITAN AREA.
59.4 		Subdivision 1.General requirements. (a) The council must identify in its 
59.5 	transportation policy plan those heavily traveled corridors where development of a transit 
59.6 	way may be feasible and cost-effective. Modes of providing service in a transit way may 
59.7 	include bus rapid transit, light rail transit, commuter rail, or other available systems or 
59.8 	technologies that improve transit service.
59.9 	(b) After the completion of environmental studies and receipt of input from the 
59.10 	governing body of each statutory and home rule charter city, county, and town in which a 
59.11 	transit way is proposed to be constructed, the council must designate the locally preferred 
59.12 	alternative transit mode with respect to the corridor.
59.13 	(c) The council shall adopt a plan to ensure that any light rail transit facilities
59.14 	that are designated as the locally preferred alternative and that are to be constructed in 
59.15 	the metropolitan area will be acquired, developed, owned, and capable of operation in 
59.16 	an efficient, cost-effective, and coordinated manner in coordination with buses and other 
59.17 	transportation modes and facilities. The plan may be developed and adopted in phases 
59.18 	corresponding to phasing of construction of light rail. The council may incorporate into its 
59.19 	plan appropriate elements of the plans of regional railroad authorities in order to avoid 
59.20 	duplication of effort.
59.21 	(b) The light rail transit plan or first phase of the plan required by this section must 
59.22 	be adopted by the council before the commissioner of transportation may begin
59.23 	 (d) Construction of light rail transit facilities in a particular transit corridor may not 
59.24 	commence unless and until that mode is designated as the locally preferred alternative 
59.25 	for that corridor by the council. Following adoption of the plan, the commissioner of 
59.26 	transportation shall act in conformity with the plan. The commissioner shall prepare or 
59.27 	amend the final design plans as necessary to make the plans consistent with the light 
59.28 	rail transit plan.
59.29 	(c) Throughout the development and implementation of the plan, the council shall 
59.30 	contract for or otherwise obtain engineering services to assure that the plan adequately 
59.31 	addresses the technical aspects of light rail transit.
59.32 		Subd. 1a.Integrated transportation system. The commissioner of transportation 
59.33 	and the Metropolitan Council shall ensure that the light rail transit and commuter rail 
59.34 	facilities are planned, designed, and implemented: (1) to move commuters and transit 
59.35 	users into and out of, as well as within, the metropolitan area, and (2) to ensure that rail 
60.1 	transit lines will interface with each other and other transportation facilities and services 
60.2 	so as to provide a unified, integrated, and efficient multimodal transportation system.
60.3 		Subd. 4.Expenditure of state funds. No state funds may be expended by the 
60.4 	Metropolitan Council to study a particular light rail transit or commuter rail facility unless 
60.5 	the funds are appropriated in legislation that identifies the route, including the origin 
60.6 	and destination.

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

60.8 	Sec. 20. Minnesota Statutes 2006, section 473.3993, subdivision 3, is amended to read:
60.9 		Subd. 3.Final design plan. "Final design plan" means a light rail transit plan that 
60.10 	includes the items in the preliminary design plan and the preliminary engineering plan for 
60.11 	the facilities proposed but with greater detail and specificity needed for construction. The 
60.12 	final design plan must include, at a minimum:
60.13 	(1) final plans for the physical design of facilities, including the right-of-way 
60.14 	definition; environmental impacts and mitigation measures; intermodal coordination with 
60.15 	bus operations and routes; and civil engineering plans for vehicles, track, stations, parking, 
60.16 	and access, including disability access; and
60.17 	(2) final plans for civil engineering for electrification, communication, and other 
60.18 	similar facilities; operational rules, procedures, and strategies; capital costs; ridership; 
60.19 	operating costs and revenues, and sources of funds for operating subsidies; financing for 
60.20 	construction and operation; an implementation method; and other similar matters.
60.21 	The final design plan must be stated with sufficient particularity and detail to 
60.22 	allow the proposer to begin the acquisition and construction of operable facilities. If a 
60.23 	design-build implementation method is proposed, instead of civil engineering plans the 
60.24 	final design plan must state detailed design criteria and performance standards for the 
60.25 	facilities.
60.26 	The commissioner of transportation may use A design-build method of project 
60.27 	development and construction may be utilized for construction of light rail transit. 
60.28 	Notwithstanding any law to the contrary, the commissioner may award a design-build 
60.29 	contract may be awarded on the basis of requests for proposals or requests for qualifications 
60.30 	without bids. "Design-build method of project development and construction" means a 
60.31 	project delivery system in which a single contractor is responsible for both the design and 
60.32 	construction of the project and bids the design and construction together.

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

61.1 	Sec. 21. Minnesota Statutes 2006, section 473.3994, is amended to read:
61.2 	473.3994 LIGHT RAIL TRANSIT; DESIGN PLANS.
61.3 		Subd. 1a.Designation of responsible authority. For each proposed light rail transit 
61.4 	facility in the metropolitan area, the governor must designate either the Metropolitan 
61.5 	Council or the state of Minnesota acting through the commissioner of transportation as 
61.6 	the entity responsible for planning, designing, acquiring, constructing, and equipping the 
61.7 	facility. For the purposes of this section and section 473.3997, the term "responsible 
61.8 	authority" means the entity designated by the governor for a particular light rail transit 
61.9 	facility. Notwithstanding such designation, the commissioner and the council may 
61.10 	enter into one or more cooperative agreements with respect to the planning, designing, 
61.11 	acquiring, constructing, or equipping of a particular light rail transit facility that provide 
61.12 	for the parties to exercise their respective authorities in support of the project in a manner 
61.13 	that best serves the project and the public.
61.14 		Subd. 2.Preliminary design plans; public hearing. Before final design plans are 
61.15 	prepared for a light rail transit facility in the metropolitan area, the commissioner of 
61.16 	transportation responsible authority and the regional railroad authority or authorities 
61.17 	in whose jurisdiction the line or lines are located must hold a public hearing on the 
61.18 	physical design component of the preliminary design plans. The commissioner of 
61.19 	transportation responsible authority and the regional railroad authority or authorities in 
61.20 	whose jurisdiction the line or lines are located must provide appropriate public notice of 
61.21 	the hearing and publicity to ensure that affected parties have an opportunity to present 
61.22 	their views at the hearing. The commissioner responsible authority shall summarize the 
61.23 	proceedings and testimony and maintain the record of a hearing held under this section, 
61.24 	including any written statements submitted.
61.25 		Subd. 3.Preliminary design plans; local approval. (a) At least 30 days before 
61.26 	the hearing under subdivision 2, the commissioner of transportation responsible authority
61.27 	shall submit the physical design component of the preliminary design plans to the 
61.28 	governing body of each statutory and home rule charter city, county, and town in which 
61.29 	the route is proposed to be located. The city, county, or town shall hold a public hearing. 
61.30 	Within 45 days after the hearing under subdivision 2, the city, county, or town shall review 
61.31 	and approve or disapprove the plans for the route to be located in the city, county, or town. 
61.32 	A local unit of government that disapproves the plans shall describe specific amendments 
61.33 	to the plans that, if adopted, would cause the local unit to withdraw its disapproval. Failure 
61.34 	to approve or disapprove the plans in writing within 45 days after the hearing is deemed 
61.35 	to be approval, unless an extension of time is agreed to by the city, county, or town and 
61.36 	the commissioner of transportation responsible authority.
62.1 		Subd. 4.Preliminary design plans; council referral. If the governing body of 
62.2 	one or more cities, counties, or towns disapproves the preliminary design plans within 
62.3 	the period allowed under subdivision 3, the commissioner of transportation may refer the 
62.4 	plans, along with any comments of local jurisdictions, to the Metropolitan Council. The
62.5 	council shall hold a hearing on the plans, giving the commissioner of transportation, if the 
62.6 	responsible authority, any disapproving local governmental units, and other persons an 
62.7 	opportunity to present their views on the plans. The council may conduct independent 
62.8 	study as it deems desirable and may mediate and attempt to resolve disagreements about 
62.9 	the plans. Within 90 60 days after the referral hearing, the council shall review the 
62.10 	plans submitted by the commissioner of transportation and the council and shall decide 
62.11 	what amendments to the plans, if any, must be made to accommodate the objections 
62.12 	presented by the disapproving local governmental units. The commissioner shall make the
62.13 	Amendments to the plans as decided by the council must be made before continuing the 
62.14 	planning and designing process.
62.15 		Subd. 5.Final design plans. (a) If the final design plans incorporate a substantial 
62.16 	change from the preliminary design plans with respect to location, length, or termini 
62.17 	of routes; general dimension, elevation, or alignment of routes and crossings; location 
62.18 	of tracks above ground, below ground, or at ground level; or station locations, before 
62.19 	beginning construction, the commissioner responsible party shall submit the changed 
62.20 	component of the final design plans to the governing body of each statutory and home 
62.21 	rule city, county, and town in which the changed component is proposed to be located. 
62.22 	Within 60 days after the submission of the plans, the city, county, or town shall review 
62.23 	and approve or disapprove the changed component located in the city, county, or town. A 
62.24 	local unit of government that disapproves the change shall describe specific amendments 
62.25 	to the plans that, if adopted, would cause the local unit to withdraw its disapproval. 
62.26 	Failure to approve or disapprove the changed plans in writing within the time period is 
62.27 	deemed to be approval, unless an extension is agreed to by the city, county, or town and 
62.28 	the commissioner responsible authority.
62.29 	(b) If the governing body of one or more cities, counties, or towns disapproves the 
62.30 	changed plans within the period allowed under paragraph (a), the commissioner may refer 
62.31 	the plans, along with any comments of local jurisdictions, to the Metropolitan Council. 
62.32 	The council shall review the final design plans under the same procedure and with the 
62.33 	same effect as provided in subdivision 4 for preliminary design plans.
62.34 		Subd. 7.Council review. If the commissioner is the responsible authority, before 
62.35 	proceeding with construction of a light rail transit facility, the commissioner must submit 
63.1 	preliminary and final design plans to the Metropolitan Council. The council must review 
63.2 	the plans for consistency with the council's development guide and approve the plans.
63.3 		Subd. 8.Metropolitan significance. This section does not diminish or replace the 
63.4 	authority of the council under section 473.173. 
63.5 		Subd. 9.Light rail transit operating costs. (a) Before submitting an application for 
63.6 	federal assistance for light rail transit facilities in the metropolitan area, the applicant must 
63.7 	provide to the Metropolitan Council estimates must prepare an estimate of the amount 
63.8 	of operating subsidy which will be required to operate light rail transit in the corridor to 
63.9 	which the federal assistance would be applied. The information provided to the council
63.10 	estimate must indicate the amount of operating subsidy estimated to be required in each 
63.11 	of the first ten years of operation of the light rail transit facility. If the commissioner of 
63.12 	transportation is the responsible authority, the commissioner must provide information 
63.13 	requested by the council that is necessary to make the estimate.
63.14 	(b) The council must review and evaluate the information provided estimate 
63.15 	developed under paragraph (a) with regard to the effect of operating the light rail transit 
63.16 	facility on the currently available mechanisms for financing transit in the metropolitan area.
63.17 		Subd. 10.Corridor Management Committee. The responsible authority 
63.18 	must establish a Corridor Management Committee shall be established to advise the 
63.19 	commissioner of transportation responsible authority in the design and construction of 
63.20 	light rail transit in each corridor to be constructed. The Corridor Management Committee
63.21 	for each corridor shall consist of the following members:
63.22 	(1) one member appointed by each city and county in which the corridor is located;
63.23 	(2) the commissioner of transportation or a designee of the commissioner;
63.24 	(3) two members appointed by the Metropolitan Council, one of whom shall be 
63.25 	designated as the chair of the committee;
63.26 	(4) one member appointed by the Metropolitan Airports Commission, if the 
63.27 	designated corridor provides direct service to the Minneapolis-St. Paul International 
63.28 	Airport; and
63.29 	(5) one member appointed by the president of the University of Minnesota, if the 
63.30 	designated corridor provides direct service to the university.
63.31 	The Corridor Management Committee shall advise the commissioner of 
63.32 	transportation responsible authority on issues relating to the alternatives analysis,
63.33 	environmental review, preliminary design, preliminary engineering, final design, 
63.34 	implementation method, and construction of light rail transit in the corridor.
63.35 		Subd. 13.Dispute resolution. In the event of a dispute between any of the parties 
63.36 	arising from the parties' respective authority and responsibility under this section, the 
64.1 	dispute shall be submitted to the Metropolitan Council for final resolution by any party to 
64.2 	the dispute. The Metropolitan Council shall establish by July 1, 1993, a process to ensure 
64.3 	a prompt and speedy resolution of the dispute. This process shall allow the parties to 
64.4 	provide evidence and testimony in support of their positions.
64.5 		Subd. 14.Transfer of facility after construction. If the commissioner of 
64.6 	transportation is the responsible authority for a particular light rail transit facility, the 
64.7 	commissioner must transfer to the Metropolitan Council all facilities constructed and 
64.8 	all equipment and property acquired in developing the facility upon completion of 
64.9 	construction.

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

64.11 	Sec. 22. Minnesota Statutes 2006, section 473.3997, is amended to read:
64.12 	473.3997 FEDERAL FUNDING; LIGHT RAIL TRANSIT.
64.13 	(a) Upon completion of the alternatives analysis and draft environmental impact 
64.14 	statement, and selection of the locally preferred alternative, for the central corridor 
64.15 	transit improvement project each light rail transit facility, the council, the commissioner 
64.16 	of transportation, and the affected regional rail authorities responsible authority may 
64.17 	prepare a joint an application for federal assistance for the light rail transit facilities in the 
64.18 	metropolitan area facility. If the commissioner is the responsible authority, the application 
64.19 	must be reviewed and approved by the Metropolitan Council before it is submitted by the 
64.20 	council and the commissioner. In reviewing the application the council must consider the 
64.21 	information submitted to it operating cost estimate developed under section 473.3994, 
64.22 	subdivision 9. 
64.23 	(b) Until the application described in paragraph (a) is submitted Except for the 
64.24 	designated responsible authority for a particular light rail transit facility, no political 
64.25 	subdivision in the metropolitan area may on its own apply for federal assistance for light 
64.26 	rail transit planning or construction.

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

64.28 	Sec. 23. [473.3999] LIGHT RAIL TRANSIT CONSTRUCTION IN THE 
64.29 	METROPOLITAN AREA; COUNCIL AUTHORITY.
64.30 	The Metropolitan Council may exercise the powers granted in this chapter and in 
64.31 	other applicable law, as necessary, to plan, design, acquire, construct, and equip light rail 
64.32 	transit facilities in the metropolitan area as defined in section 473.121, subdivision 2.

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

65.2 	Sec. 24. Minnesota Statutes 2006, section 473.4051, is amended to read:
65.3 	473.4051 LIGHT RAIL TRANSIT OPERATION.
65.4 	The council shall operate all light rail transit facilities and services located in the 
65.5 	metropolitan area upon completion of construction of the facilities and the commencement 
65.6 	of revenue service using the facilities. The commissioner of transportation and the council 
65.7 	may not allow the commencement of revenue service until after an appropriate period of 
65.8 	acceptance testing to ensure safe and satisfactory performance. In assuming the operation 
65.9 	of the system, the council must comply with section 473.415. The council shall coordinate 
65.10 	operation of the light rail transit system with bus service to avoid duplication of service 
65.11 	on a route served by light rail transit and to ensure the widest possible access to light rail 
65.12 	transit lines in both suburban and urban areas by means of a feeder bus system. 

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

65.14 	Sec. 25. Minnesota Statutes 2006, section 473.407, subdivision 1, is amended to read:
65.15 		Subdivision 1.Authorization. The council may appoint peace officers, as defined 
65.16 	in section 626.84, subdivision 1, paragraph (c), and establish a law enforcement agency, 
65.17 	as defined in section 626.84, subdivision 1, paragraph (f), known as the Metropolitan 
65.18 	Transit Police, to police its transit property and routes, to carry out investigations, and to 
65.19 	make arrests under sections 629.30 and 629.34. The jurisdiction of the law enforcement 
65.20 	agency is limited to offenses relating to council transit property, equipment, employees, 
65.21 	and passengers.  The jurisdiction of the Metropolitan Transit Police shall include traffic 
65.22 	lanes designed for bus or transit use, freeway or expressway shoulders in the seven-county 
65.23 	metropolitan area used by authorized transit buses and metro mobility buses under section 
65.24 	169.306, and high-occupancy vehicle lanes used by transit buses. Upon request from, or 
65.25 	under an agreement with, any law enforcement agency and subject to the availability of 
65.26 	its personnel and other resources, the Metropolitan Transit Police may exercise general 
65.27 	law enforcement agency authority to assist any law enforcement agency in implementing 
65.28 	or carrying out law enforcement activities, programs, or initiatives. If the commissioner 
65.29 	of transportation contracts with the Metropolitan Council for operation of commuter rail 
65.30 	facilities under section 174.90, the jurisdiction of the Metropolitan Transit Police extends 
65.31 	to offenses relating to the operation, property, facilities, equipment, employees, and 
65.32 	passengers of the commuter rail facilities located in and outside of the metropolitan area.

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

66.1 	Sec. 26. Minnesota Statutes 2006, section 473.446, subdivision 2, is amended to read:
66.2 		Subd. 2.Transit taxing district. The metropolitan transit taxing district is hereby 
66.3 	designated as that portion of the metropolitan transit area lying within the following 
66.4 	named cities, towns, or unorganized territory within the counties indicated:
66.5 	(a) Anoka County. Anoka, Blaine, Centerville, Columbia Heights, Coon Rapids, 
66.6 	Fridley, Circle Pines, Hilltop, Lexington, Lino Lakes, Spring Lake Park;
66.7 	(b) Carver County. Chanhassen, the city of Chaska;
66.8 	(c) Dakota County. Apple Valley, Burnsville, Eagan, Inver Grove Heights, Lilydale, 
66.9 	Mendota, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake, West St. Paul;
66.10 	(d) Ramsey County. All of the territory within Ramsey County;
66.11 	(e) Hennepin County. Bloomington, Brooklyn Center, Brooklyn Park, Champlin, 
66.12 	Chanhassen, Crystal, Deephaven, Eden Prairie, Edina, Excelsior, Golden Valley, 
66.13 	Greenwood, Hopkins, Long Lake, Maple Grove, Medicine Lake, Minneapolis, 
66.14 	Minnetonka, Minnetonka Beach, Mound, New Hope, Orono, Osseo, Plymouth, Richfield, 
66.15 	Robbinsdale, St. Anthony, St. Louis Park, Shorewood, Spring Park, Tonka Bay, Wayzata, 
66.16 	Woodland, the unorganized territory of Hennepin County;
66.17 	(f) Scott County. Prior Lake, Savage, Shakopee;
66.18 	(g) Washington County. Baytown, the city of Stillwater, White Bear Lake, Bayport, 
66.19 	Birchwood, Cottage Grove, Dellwood, Lake Elmo, Landfall, Mahtomedi, Newport, 
66.20 	Oakdale, Oak Park Heights, Pine Springs, St. Paul Park, Willernie, Woodbury means the 
66.21 	metropolitan area.
66.22 	The Metropolitan Council in its sole discretion may provide transit service by 
66.23 	contract beyond the boundaries of the metropolitan transit taxing district or to cities and 
66.24 	towns within the taxing district which are receiving financial assistance under section 
66.25 	473.388, upon petition therefor by an interested city, township or political subdivision 
66.26 	within the metropolitan transit area. The Metropolitan Council may establish such 
66.27 	terms and conditions as it deems necessary and advisable for providing the transit 
66.28 	service, including such combination of fares and direct payments by the petitioner as 
66.29 	will compensate the council for the full capital and operating cost of the service and the 
66.30 	related administrative activities of the council. The amount of the levy made by any 
66.31 	municipality to pay for the service shall be disregarded when calculation of levies subject 
66.32 	to limitations is made, provided that cities and towns receiving financial assistance under 
66.33 	section 473.388 shall not make a special levy under this subdivision without having first 
66.34 	exhausted the available local transit funds as defined in section 473.388. The council shall 
66.35 	not be obligated to extend service beyond the boundaries of the taxing district, or to cities 
67.1 	and towns within the taxing district which are receiving financial assistance under section 
67.2 	473.388, under any law or contract unless or until payment therefor is received. 

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

67.4 	Sec. 27. Minnesota Statutes 2006, section 473.446, subdivision 8, is amended to read:
67.5 		Subd. 8.State review. The commissioner of revenue shall certify the council's levy 
67.6 	limitation under this section to the council by August 1 of the levy year. The council 
67.7 	must certify its proposed property tax levy under this section to the commissioner of 
67.8 	revenue by September 1 of the levy year. The commissioner of revenue shall annually 
67.9 	determine whether the property tax for transit purposes certified by the council for levy 
67.10 	following the adoption of its proposed budget is within the levy limitation imposed by 
67.11 	subdivisionssubdivision 1 and 1b. Thecommissioner shall also annually determine 
67.12 	whether the transit tax imposed on all taxable property within the metropolitan transit area 
67.13 	but outside of the metropolitan transit taxing district is within the levy limitation imposed 
67.14 	by subdivision 1a. The determination must be completed prior to September 10 of each 
67.15 	year. If current information regarding market valuation in any county is not transmitted to 
67.16 	the commissioner in a timely manner, the commissioner may estimate the current market 
67.17 	valuation within that county for purposes of making the calculations.

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

67.19 	Sec. 28. Minnesota Statutes 2006, section 609.531, subdivision 1, is amended to read:
67.20 		Subdivision 1.Definitions. For the purpose of sections 609.531 to 609.5318, the 
67.21 	following terms have the meanings given them.
67.22 	(a) "Conveyance device" means a device used for transportation and includes, but 
67.23 	is not limited to, a motor vehicle, trailer, snowmobile, airplane, and vessel and any 
67.24 	equipment attached to it. The term "conveyance device" does not include property which 
67.25 	is, in fact, itself stolen or taken in violation of the law.
67.26 	(b) "Weapon used" means a dangerous weapon as defined under section 609.02, 
67.27 	subdivision 6, that the actor used or had in possession in furtherance of a crime.
67.28 	(c) "Property" means property as defined in section 609.52, subdivision 1, clause (1).
67.29 	(d) "Contraband" means property which is illegal to possess under Minnesota law.
67.30 	(e) "Appropriate agency" means the Bureau of Criminal Apprehension, the 
67.31 	Minnesota Division of Driver and Vehicle Services, the Minnesota State Patrol, a 
67.32 	county sheriff's department, the Three Rivers Park District park rangers, the Department 
67.33 	of Natural Resources Division of Enforcement, the University of Minnesota Police 
68.1 	Department, the Department of Corrections' Fugitive Apprehension Unit, or a city, 
68.2 	metropolitan transit,  or airport police department.
68.3 	(f) "Designated offense" includes:
68.4 	(1) for weapons used: any violation of this chapter, chapter 152, or chapter 624;
68.5 	(2) for driver's license or identification card transactions: any violation of section 
68.6 	171.22; and
68.7 	(3) for all other purposes: a felony violation of, or a felony-level attempt or 
68.8 	conspiracy to violate, section 325E.17; 325E.18; 609.185; 609.19; 609.195; 609.21; 
68.9 	609.221; 609.222; 609.223; 609.2231; 609.24; 609.245; 609.25; 609.255; 609.282; 
68.10 	609.283; 609.322; 609.342, subdivision 1, clauses (a) to (f); 609.343, subdivision 1, 
68.11 	clauses (a) to (f); 609.344, subdivision 1, clauses (a) to (e), and (h) to (j); 609.345, 
68.12 	subdivision 1, clauses (a) to (e), and (h) to (j); 609.352; 609.42; 609.425; 609.466; 
68.13 	609.485; 609.487; 609.52; 609.525; 609.527; 609.528; 609.53; 609.54; 609.551; 609.561; 
68.14 	609.562; 609.563; 609.582; 609.59; 609.595; 609.631; 609.66, subdivision 1e; 609.671, 
68.15 	subdivisions 3, 4, 5, 8, and 12; 609.687; 609.821; 609.825; 609.86; 609.88; 609.89; 
68.16 	609.893; 609.895; 617.246; 617.247; or a gross misdemeanor or felony violation of 
68.17 	section 609.891 or 624.7181; or any violation of section 609.324.
68.18 	(g) "Controlled substance" has the meaning given in section 152.01, subdivision 4.

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

68.20 	Sec. 29. NORTHSTAR CORRIDOR COMMUTER RAIL STATION.
 68.21 	The commissioner of transportation shall incorporate a station located in the city 
68.22 	of Fridley in final design plans and construction of the Northstar Corridor Commuter 
68.23 	Rail Line.

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

68.25 	Sec. 30. REPORTS ON SPECIAL TRANSPORTATION SERVICES.
 68.26 	The commissioner of transportation with respect to special transportation services 
68.27 	outside the metropolitan area, and the Metropolitan Council, with respect to special 
68.28 	transportation services within the metropolitan area, shall each:
68.29 	(1) assess transit needs of people with disabilities;
68.30 	(2) establish a five-year phased plan to meet the identified needs to the maximum 
68.31 	feasible extent;
68.32 	(3) incorporate a minimum of service for 14 hours per day into the five-year plan;
69.1 	(4) identify both capital and operating needs for each year of the phased plan, as 
69.2 	well as ongoing needs of the fully implemented program; and 
69.3 	(5) identify all funding sources and proposals for utilizing federal funds.
69.4 	The commissioner of transportation and the Metropolitan Council shall each report 
69.5 	findings and recommendations under this section to the chairs and ranking minority 
69.6 	members of the senate and house of representatives committees with jurisdiction over 
69.7 	transportation finance and policy no later than December 15, 2008.

69.8 	Sec. 31. APPLICATION.
 69.9 	Sections 15 to 27 apply in the counties of Anoka, Carver, Dakota, Hennepin, 
69.10 	Ramsey, Scott, and Washington.

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

69.12 	Sec. 32.  REPEALER.
 69.13 	(a) Minnesota Statutes 2006, sections 473.123, subdivision 3d; and 473.4461, are 
69.14 	repealed.
69.15 	(b) Laws 1999, chapter 230, section 44, is repealed.

69.16 	ARTICLE 11
69.17 	CREDIT CARD PAYMENTS

69.18 	Section 1. [168.328] VEHICLE-RELATED PAYMENTS BY CREDIT OR DEBIT 
69.19 	CARD.
69.20 	By August 1, 2008, the commissioner of public safety may study a system to allow 
69.21 	the department, deputy registrars, and driver's license agents to collect motor vehicle 
69.22 	registration taxes under section 168.013, motor vehicle certificate of titles and related 
69.23 	document fees under section 168A.29, and driver's license and Minnesota identification 
69.24 	card fees under section 171.06, by credit or debit card.