1.1 	A bill for an act
1.2 	relating to transportation finance; appropriating money for transportation 
1.3 	activities; providing funding for highway maintenance, debt service, and local 
1.4 	roads; appropriating funds for emergency relief related to the I-35W bridge 
1.5 	collapse; establishing a trunk highway bridge improvement program; requiring 
1.6 	a study of value capture to reduce the public costs of large transportation 
1.7 	infrastructure investment; authorizing sale and issuance of bonds; modifying 
1.8 	motor vehicle registration and motor fuel taxes; establishing annual surcharge on 
1.9 	motor fuel taxes; creating a motor fuels tax credit; allocating motor vehicle lease 
1.10 	tax revenues; providing for local transportation sales taxes; modifying county 
1.11 	state-aid highway fund revenue allocation; prohibiting tolling or privatization 
1.12 	of existing transportation facilities; establishing bridge improvement program; 
1.13 	modifying driver's license reinstatement fee provisions; regulating certain transit 
1.14 	funding activities; modifying provisions related to various transportation-related 
1.15 	funds and accounts;amending Minnesota Statutes 2006, sections 160.84, 
1.16 	subdivision 1; 161.081, subdivision 3; 162.06; 162.07, subdivision 1, by adding 
1.17 	subdivisions; 168.013, subdivision 1a; 171.29, subdivision 2; 290.06, by adding 
1.18 	a subdivision; 296A.07, subdivision 3; 296A.08, subdivision 2; 297A.64, 
1.19 	subdivision 2; 297A.815, by adding a subdivision; 297A.99, subdivision 1; 
1.20 	proposing coding for new law in Minnesota Statutes, chapters 160; 165; 296A; 
1.21 	297A; 398A.
1.22 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.23 	ARTICLE 1
1.24 	TRANSPORTATION APPROPRIATIONS 

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

1.28			2008
		2009
		Total
	
1.29	General Fund
		0
		2,775,000
		2,775,000
	
1.30	Trunk Highway
		55,000,000
		166,618,000
		221,618,000
	
1.31	C.S.A.H.
		0
		52,133,000
		52,133,000
	
2.1	M.S.A.S.
		0
		13,694,000
		13,694,000
	
2.2	Total
	$
	55,000,000
	$
	235,220,000
	$
	290,220,000

2.3	Sec. 2. TRANSPORTATION APPROPRIATIONS.
 	
2.4 	The sums shown in the columns marked "Appropriations" are appropriated to 
2.5 	the agencies and for the purposes specified in this article. The appropriations are from 
2.6 	the trunk highway fund, or another named fund, and are available for the fiscal years 
2.7 	indicated for each purpose. The figures "2008" and "2009" used in this article mean that 
2.8 	the appropriations listed under them are available for the fiscal year ending June 30, 2008, 
2.9 	or June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is 
2.10 	fiscal year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for fiscal 
2.11 	year 2008 are effective the day following final enactment.
2.12 	The appropriations are in addition to appropriations under Laws 2007, chapter 143, 
2.13 	article 1, section 3, and Laws 2007, First Special Session chapter 2, article 2, section 2.

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

2.18	Sec. 3. TRANSPORTATION

2.19	Subdivision 1.Total Appropriation
 	$
	0
	$
	154,242,000

2.20	Appropriations by Fund
	
2.21		2008
	2009
	
2.22	General Fund
	0
	2,450,000
	
2.23	Trunk Highway
	0
	85,965,000
	
2.24	C.S.A.H.
	0
	52,133,000
	
2.25	M.S.A.S.
	0
	13,694,000
	
2.26 	The amounts that may be spent for each 
2.27 	purpose are specified in the following 
2.28 	subdivisions.

2.29	Subd. 2.Multimodal Systems

2.30	(a) Transit
		0
		1,700,000
	
2.31 	This appropriation is from the general fund.

2.32	(b) Rail
		0
		250,000
	
3.1 	This appropriation is from the general 
3.2 	fund for a grant to the Northstar Corridor 
3.3 	Development Authority to fund advanced 
3.4 	preliminary engineering, updated 
3.5 	environmental documentation, property 
3.6 	appraisals, and negotiations with the railroad 
3.7 	to extend commuter rail service on the 
3.8 	Burlington Northern Santa Fe rail line 
3.9 	between Big Lake and Rice. This is a 
3.10 	onetime appropriation and is available until 
3.11 	spent.

3.12	(c) Port Development Assistance
		0
		500,000
	
3.13 	This appropriation is from the general fund 
3.14 	for grants under Minnesota Statutes, chapter 
3.15 	457A. Any improvements made with the 
3.16 	proceeds of these grants must be publicly 
3.17 	owned.

3.18	Subd. 3.State Roads

3.19	(a) Infrastructure Operations and Maintenance
		0
		43,205,000

3.20	(b) Infrastructure Investment Support
		0
		35,549,000
	
3.21 	$200,000 is for a grant to the Hubert H. 
3.22 	Humphrey Institute of Public Affairs for its 
3.23 	participation in the United States Department 
3.24 	of Transportation Urban Partnership 
3.25 	program.

3.26	(c) Highway Debt Service
		0
		7,211,000
	
3.27 	This appropriation is for transfer to the state 
3.28 	bond fund. If this appropriation is insufficient 
3.29 	to make all transfers required in the year for 
3.30 	which it is made, the commissioner of finance 
3.31 	shall notify the Committee on Finance of 
3.32 	the senate and the Committee on Ways and 
3.33 	Means of the house of representatives of 
3.34 	the amount of the deficiency and shall then 
4.1 	transfer that amount under the statutory open 
4.2 	appropriation. Any excess appropriation 
4.3 	cancels to the trunk highway fund.

4.4	Subd. 4.Local Roads

4.5	(a) County State Aids
		0
		52,133,000
	
4.6 	This appropriation is from the county 
4.7 	state-aid highway fund and is available until 
4.8 	spent.

4.9	(b) Municipal State Aids
		0
		13,694,000
	
4.10 	This appropriation is from the municipal 
4.11 	state-aid street fund and is available until 
4.12 	spent.

4.13	(c) State-Aid Appropriation Adjustments
					
4.14 	If an appropriation under this subdivision 
4.15 	does not exhaust the balance in the fund 
4.16 	from which it is made in the year for 
4.17 	which it is made, the commissioner of 
4.18 	finance, upon request of the commissioner 
4.19 	of transportation, shall notify the chairs and 
4.20 	ranking minority members of the house of 
4.21 	representatives and senate committees with 
4.22 	jurisdiction over transportation finance of the 
4.23 	amount of the remainder and shall then add 
4.24 	that amount to the appropriation. The amount 
4.25 	added is appropriated for the purposes of 
4.26 	county state aids or municipal state aids, as 
4.27 	appropriate.
4.28 	If the appropriations under this subdivision 
4.29 	exhaust the balance in the fund from 
4.30 	which it is made in the year for which 
4.31 	it is made, the commissioner of finance 
4.32 	shall notify the chairs and ranking minority 
4.33 	members of the house of representatives 
4.34 	and senate committees with jurisdiction 
5.1 	over transportation finance of the amount by 
5.2 	which the appropriation exceeds the balance 
5.3 	and shall then reduce that amount from the 
5.4 	appropriation.

5.5	Subd. 5.Transfers
 					
5.6 	With the approval of the commissioner of 
5.7 	finance, the commissioner of transportation 
5.8 	may transfer unencumbered balances among 
5.9 	the appropriations from the trunk highway 
5.10 	fund and the state airports fund made in this 
5.11 	section. No transfer may be made from the 
5.12 	appropriations for state road construction 
5.13 	or debt service to any other appropriation. 
5.14 	Transfers under this paragraph may not be 
5.15 	made between funds. Transfers between 
5.16 	programs must be reported immediately to 
5.17 	the chairs and ranking minority members 
5.18 	of the house of representatives and 
5.19 	senate committees with jurisdiction over 
5.20 	transportation finance.

5.21	Sec. 4. PUBLIC SAFETY
 	$
	0
	$
	3,653,000
	
5.22 	This appropriation is for the State Patrol to 
5.23 	add 40 troopers.

5.24 	Sec. 5. APPROPRIATION; TRANSPORTATION EMERGENCY RELIEF.
 5.25 	$55,000,000 in fiscal year 2008 and $77,000,000 in fiscal year 2009 are appropriated 
5.26 	to the commissioner of transportation from the trunk highway fund for the purposes 
5.27 	specified in the federal grants and aids related to the I-35W bridge collapse on marked 
5.28 	Interstate Highway I-35W in Minneapolis. The appropriation in fiscal year 2009 is 
5.29 	available for other trunk highway construction projects. This appropriation is in addition 
5.30 	to appropriations under Laws 2007, chapter 143, article 1, section 3, and Laws 2007, First 
5.31 	Special Session chapter 2, article 2, section 2.

5.32 	EFFECTIVE DATE. Appropriations for fiscal year 2008 are effective the day 
5.33 	following final enactment.

6.1 	Sec. 6. VALUE CAPTURE STUDY; APPROPRIATION.
 6.2 		Subdivision 1.Findings. The legislature finds that large public investments in state 
6.3 	transportation infrastructure, such as constructing freeway interchanges, new highways, 
6.4 	and rail transit stations, can result in surrounding private land and other property increasing 
6.5 	in value, sometimes by substantial amounts. The special assessment law, Minnesota 
6.6 	Statutes, chapter 429, provides a method for local governments to use similar private or 
6.7 	special benefits to help finance local streets, roads, and other transportation improvements. 
6.8 	However, the law does not provide the state with a similar financing mechanism and 
6.9 	the nature of a large state transportation project may suggest that alternative financing 
6.10 	mechanisms are more appropriate.
6.11 		Subd. 2.Appropriation; study. $325,000 is appropriated from the general fund to 
6.12 	the Board of Regents of the University of Minnesota for the Center for Transportation 
6.13 	Studies to complete a study to assess the public policy implications of financing new and 
6.14 	improved transportation infrastructure in Minnesota through capturing the value of the 
6.15 	benefits created, to prepare a report on its findings, and to conduct a series of workshops. 
6.16 	This is a onetime appropriation and is available in fiscal years 2008 and 2009.
6.17 		Subd. 3.Report; workshops. The Center for Transportation Studies must report 
6.18 	its preliminary findings to the legislature by March 1, 2009, and must issue its full report 
6.19 	by July 1, 2009. The Center for Transportation must also offer a series of educational 
6.20 	workshops for elected officials during the summer and fall of 2009.

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

6.22 	ARTICLE 2
6.23 	TRUNK HIGHWAY AND LOCAL ROAD AND BRIDGE BONDING

6.24 	Section 1. [296A.083] DEBT SERVICE SURCHARGE.
6.25 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
6.26 	the meanings given them:
6.27 	(1) "debt service" means the amount of principal and interest in each fiscal year 
6.28 	attributable to the trunk highway bonds authorized in this article; and
6.29 	(2) "surcharge" means the rate imposed under this section on gasoline taxed under 
6.30 	section 296A.07, subdivision 3, clause (3), and includes a proportional rate for each type 
6.31 	of fuel taxed under sections 296A.07, subdivision 3, clauses (1) and (2), and 296A.08, 
6.32 	subdivision 2.
7.1 		Subd. 2.Debt service forecast. On June 30, 2008, and each March 1 thereafter, the 
7.2 	commissioner of finance shall report to the commissioner of revenue on trunk highway 
7.3 	debt service. The report must include the annual amount of revenue from the surcharge 
7.4 	previously deposited in the trunk highway fund, and a forecast of the total and annual 
7.5 	amounts necessary to pay the remaining debt service.
7.6 		Subd. 3.Surcharge rate. (a) By July 16, 2008, and each April 1 thereafter, the 
7.7 	commissioner of revenue shall calculate and publish a surcharge as provided in paragraphs 
7.8 	(b) and (c). The surcharge is imposed from August 1, 2008, through June 30, 2009, and 
7.9 	each new surcharge thereafter is imposed the following July 1 through June 30.
7.10 	(b) For fiscal years 2009 through 2012, the commissioner shall set the surcharge as 
7.11 	specified in the following surcharge rate schedule.

7.12	Surcharge Rate Schedule
		
7.13
7.14	Fiscal Year
	Rate (in cents 
per gallon)
		
7.15	2009
	0.5
		
7.16	2010
	2.1
		
7.17	2011
	2.5
		
7.18	2012
	3.0
		
7.19 	(c) For fiscal year 2013 and thereafter, the commissioner shall set the surcharge at 
7.20 	the lesser of (1) 3.5 cents, or (2) an amount calculated so that the total proceeds from the 
7.21 	surcharge deposited in the trunk highway fund from fiscal year 2009 to the upcoming 
7.22 	fiscal year equals the total amount of debt service from fiscal years 2009 to 2039, and the 
7.23 	surcharge is rounded to the nearest 0.1 cent.

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

7.25	Sec. 2.  BOND APPROPRIATIONS.
 	
7.26 	The sums shown in the column under "APPROPRIATIONS" are appropriated from 
7.27 	the bond proceeds account in the trunk highway fund, or another named fund, to the state 
7.28 	agencies or officials indicated, to be spent for public purposes. Appropriations of bond 
7.29 	proceeds must be spent as authorized by the Minnesota Constitution, articles IX and XIV.

7.30	SUMMARY
	
7.31	Department of Transportation
	$
	1,841,403,000
	
7.32	Metropolitan Council
		400,000
	
7.33	Department of Administration
		18,197,000
	
7.34	Department of Finance
		1,860,000
	
7.35	TOTAL
	$
	1,861,860,000

7.36				APPROPRIATIONS

8.1
8.2	Sec. 3. DEPARTMENT OF 
TRANSPORTATION

8.3	Subdivision 1.Total Appropriation
 			$
	1,841,403,000

8.4	Appropriations by Fund
	
8.5	Trunk Highway
		1,781,403,000
	
8.6	State Transportation
		60,000,000
	
8.7 	This appropriation is to the commissioner of 
8.8 	transportation for the purposes specified in 
8.9 	this section.

8.10	Subd. 2.State Road Construction
 				1,717,694,000
	
8.11 	(a) For the actual construction, 
8.12 	reconstruction, and improvement of 
8.13 	trunk highways, including design-build 
8.14 	contracts and consultant usage to support 
8.15 	these activities. This includes the cost 
8.16 	of actual payments to landowners for 
8.17 	lands acquired for highway rights-of-way, 
8.18 	payments to lessees, interest subsidies, and 
8.19 	relocation expenses. This appropriation is in 
8.20 	the following amounts:
8.21 	(1) $417,694,000 in fiscal year 2009, and the 
8.22 	commissioner may use up to $71,008,000 of 
8.23 	this amount for program delivery;
8.24 	(2) $500,000,000 in fiscal year 2010, and the 
8.25 	commissioner may use up to $85,000,000 of 
8.26 	this amount for program delivery; and
8.27 	(3) $100,000,000 in each fiscal year for 
8.28 	fiscal years 2011 through 2018, and the 
8.29 	commissioner may use up to $17,000,000 of 
8.30 	the amount in each fiscal year for program 
8.31 	delivery.
8.32 	(b) Of the amount in fiscal year 2009, 
8.33 	$40,000,000 is for construction of 
8.34 	interchanges involving a trunk highway, 
9.1 	where the interchange will promote economic 
9.2 	development, increase employment, relieve 
9.3 	growing traffic congestion, and promote 
9.4 	traffic safety. The amount under this 
9.5 	paragraph must be allocated 50 percent to 
9.6 	the department's metropolitan district, and 50 
9.7 	percent to districts in greater Minnesota.
9.8 	(c) Of the amount in fiscal years 2009 
9.9 	and 2010, the commissioner shall 
9.10 	use $300,000,000 each year for predesign, 
9.11 	design, preliminary engineering, right-of-way 
9.12 	acquisition, construction, reconstruction, 
9.13 	and maintenance of bridges in the trunk 
9.14 	highway bridge improvement program under 
9.15 	Minnesota Statutes, section 165.14.
9.16 	(d) Of the total appropriation under this 
9.17 	subdivision, the commissioner shall use at 
9.18 	least $50,000,000 for accelerating transit 
9.19 	facility improvements on or adjacent to trunk 
9.20 	highways.
9.21 	(e) Of the total appropriation under this 
9.22 	subdivision provided to the Department of 
9.23 	Transportation's district 7, the commissioner 
9.24 	shall first expend funds as necessary to 
9.25 	accelerate all projects that (1) are on a trunk 
9.26 	highway classified as a medium priority 
9.27 	interregional corridor, (2) are included in the 
9.28 	district's long-range transportation plan, but 
9.29 	are not included in the state transportation 
9.30 	improvement program or the ten-year 
9.31 	highway work plan, and (3) expand capacity 
9.32 	from a two-lane highway to a freeway 
9.33 	or expressway, as defined in Minnesota 
9.34 	Statutes, section 160.02, subdivision 19. The 
9.35 	commissioner shall establish as the highest 
10.1 	priority under this paragraph any project that 
10.2 	currently has a final environmental impact 
10.3 	statement completed. The requirement 
10.4 	under this paragraph does not change the 
10.5 	department's funding allocation process 
10.6 	or the amount otherwise allocated to each 
10.7 	transportation district.

10.8	Subd. 3.Great River Road
 				4,299,000
	
10.9 	For predesign, design, construction, and 
10.10 	restoration of historic roadside properties on 
10.11 	the Great River Road. The commissioner 
10.12 	shall consult with the Minnesota Mississippi 
10.13 	River Parkway Commission to determine 
10.14 	project priorities.

10.15	Subd. 4.Urban Partnership Agreement
 				24,778,000
	
10.16 	For design, conversion, and construction 
10.17 	of (1) a high-occupancy toll lane along a 
10.18 	portion of marked Interstate Highway I-35W 
10.19 	in the counties of Dakota and Hennepin, 
10.20 	(2) a priced dynamic shoulder lane along a 
10.21 	portion of marked Interstate Highway I-35W 
10.22 	in Minneapolis, (3) bus-only transit along a 
10.23 	portion of marked Trunk Highway 77 in the 
10.24 	counties of Dakota and Hennepin, and (4) 
10.25 	related arterial traffic management projects. 
10.26 	This appropriation is part of the local match 
10.27 	of federal funding provided under the urban 
10.28 	partnership agreement.

10.29
10.30	Subd. 5.Mankato District Headquarters 
Building
 				23,983,000
	
10.31 	For design, construction, furnishing, 
10.32 	and equipping a new Department of 
10.33 	Transportation district headquarters facility 
10.34 	in Mankato.

11.1
11.2	Subd. 6.Chaska Truck Station - Carver 
County Partnership
 				8,649,000
	
11.3 	For design and construction of a new truck 
11.4 	station facility in Chaska, in partnership with 
11.5 	Carver County.

11.6
11.7	Subd. 7.Rochester and Maple Grove Truck 
Stations Design
 				2,000,000
	
11.8 	For design and investigative services of 
11.9 	new truck station facilities in Rochester and 
11.10 	Maple Grove.

11.11
11.12	Subd. 8.Local Bridge Replacement and 
Rehabilitation
 				50,000,000
	
11.13 	This appropriation is from the bond proceeds 
11.14 	account in the state transportation fund as 
11.15 	provided in Minnesota Statutes, section 
11.16 	174.50, to match federal money and to 
11.17 	replace or rehabilitate local deficient bridges.
11.18 	Political subdivisions may use grants made 
11.19 	under this section to construct or reconstruct 
11.20 	bridges, including:
11.21 	(1) matching federal aid grants to construct 
11.22 	or reconstruct key bridges;
11.23 	(2) paying the costs of preliminary 
11.24 	engineering and environmental studies 
11.25 	authorized under Minnesota Statutes, section 
11.26 	174.50, subdivision 6a;
11.27 	(3) paying the costs to abandon an existing 
11.28 	bridge that is deficient and in need of 
11.29 	replacement, but where no replacement will 
11.30 	be made; and
11.31 	(4) paying the costs to construct a road 
11.32 	or street to facilitate the abandonment 
11.33 	of an existing bridge determined by 
11.34 	the commissioner to be deficient, if the 
12.1 	commissioner determines that construction 
12.2 	of the road or street is more cost efficient 
12.3 	than the replacement of the existing bridge.

12.4	Subd. 9.Local Road Improvement Program
 				10,000,000
	
12.5 	This appropriation is from the bond proceeds 
12.6 	account in the state transportation fund as 
12.7 	provided in Minnesota Statutes, section 
12.8 	174.50, for grants to counties to assist in 
12.9 	paying the costs of rural road safety capital 
12.10 	improvement projects on county state-aid 
12.11 	highways under Minnesota Statutes, section 
12.12 	174.52, subdivision 4a. 

12.13	Sec. 4. METROPOLITAN COUNCIL
 			$
	400,000

12.14	Urban Partnership Agreement
 					
12.15 	This appropriation is to the Metropolitan 
12.16 	Council for land acquisition, design, and 
12.17 	construction of park-and-ride facilities along 
12.18 	marked Interstate Highway I-35W in the 
12.19 	counties of Dakota and Hennepin. This 
12.20 	appropriation is part of the local match of 
12.21 	federal funding provided under the urban 
12.22 	partnership agreement.

12.23
12.24	Sec. 5. DEPARTMENT OF 
ADMINISTRATION
 			$
	18,197,000

12.25	Transportation Building Exterior Repair
 					
12.26 	This appropriation is to the commissioner 
12.27 	of administration for repair and renovation 
12.28 	of the exterior of the Department of 
12.29 	Transportation Building at 395 John Ireland 
12.30 	Boulevard in St. Paul.

12.31	Sec. 6. DEPARTMENT OF FINANCE
 			$
	1,860,000

12.32	Bond Sale Expenses
 					
13.1 	This appropriation is to the commissioner 
13.2 	of finance for bond sale expenses under 
13.3 	Minnesota Statutes, sections 16A.641, 
13.4 	subdivision 8, and 167.50, subdivision 4.
13.5 	Of this amount, $60,000 is from the bond 
13.6 	proceeds account in the state transportation 
13.7 	fund.

13.8 	Sec. 7. BOND SALE AUTHORIZATION.
 13.9 		Subdivision 1.Trunk highway fund bonds. To provide the money appropriated in 
13.10 	this article from the bond proceeds account in the trunk highway fund, the commissioner 
13.11 	of finance shall sell and issue bonds of the state in an amount up to $1,801,800,000 in the 
13.12 	manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 
13.13 	167.50 to 167.52, and by the Minnesota Constitution, article XIV, section 11, at the times 
13.14 	and in the amounts requested by the commissioner of transportation. The proceeds of the 
13.15 	bonds, except accrued interest and any premium received from the sale of the bonds, must 
13.16 	be deposited in the bond proceeds account in the trunk highway fund.
13.17 		Subd. 2.State transportation fund bonds. To provide the money appropriated in 
13.18 	this article from the state transportation fund, the commissioner of finance shall sell and 
13.19 	issue bonds of the state in an amount up to $60,060,000 in the manner, upon the terms, and 
13.20 	with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by 
13.21 	the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of the bonds, except 
13.22 	accrued interest and any premium received on the sale of the bonds, must be credited to 
13.23 	a bond proceeds account in the state transportation fund.

13.24 	Sec. 8. EFFECTIVE DATE.
 13.25 	Except where otherwise specified, this article is effective the day following final 
13.26 	enactment.

13.27 	ARTICLE 3
13.28 	HIGHWAY USER TAXES

13.29 	Section 1. Minnesota Statutes 2006, section 168.013, subdivision 1a, is amended to 
13.30 	read:
13.31 		Subd. 1a.Passenger automobile; hearse. (a) On passenger automobiles as defined 
13.32 	in section  168.011, subdivision 7, and hearses, except as otherwise provided, the tax shall 
13.33 	be $10 plus an additional tax equal to  1.25 percent of the base value. 
14.1 	(b) Subject to the classification provisions herein, "base value" means the 
14.2 	manufacturer's suggested retail price of the vehicle including destination charge using list 
14.3 	price information published by the manufacturer or determined by the registrar if no 
14.4 	suggested retail price exists, and shall not include the cost of each accessory or item of 
14.5 	optional equipment separately added to the vehicle and the suggested retail price.
14.6 	(c) If the manufacturer's list price information contains a single vehicle identification 
14.7 	number followed by various descriptions and suggested retail prices, the registrar shall 
14.8 	select from those listings only the lowest price for determining base value.
14.9 	(d)  If unable to determine the base value because the vehicle is specially constructed, 
14.10 	or for any other reason, the registrar may establish such value upon the cost price to the 
14.11 	purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales 
14.12 	or use tax or any local sales or other local tax.
14.13 	(e) The registrar shall classify every vehicle in its proper base value class as follows:

14.14		FROM
		TO
	
14.15		$ ........0 
		$ ........199.99 
	
14.16		$........200
		$........399.99
	
14.17 	and thereafter a series of classes successively set in brackets having a spread of $200 
14.18 	consisting of such number of classes as will permit classification of all vehicles.
14.19 	(f) The base value for purposes of this section shall be the middle point between 
14.20 	the extremes of its class.
14.21 	(g) The registrar shall establish the base value, when new, of every passenger 
14.22 	automobile and hearse registered prior to the effective date of Extra Session Laws 1971, 
14.23 	chapter 31, using list price information published by the manufacturer or any nationally 
14.24 	recognized firm or association compiling such data for the automotive industry. If unable 
14.25 	to ascertain the base value of any registered vehicle in the foregoing manner, the registrar 
14.26 	may use any other available source or method. The registrar shall calculate tax using base 
14.27 	value information available to dealers and deputy registrars at the time the application for 
14.28 	registration is submitted. The tax on all previously registered vehicles shall be computed 
14.29 	upon the base value thus determined taking into account the depreciation provisions of 
14.30 	paragraph (h).
14.31 	(h) The annual additional tax must be computed upon a percentage of the base 
14.32 	value as provided herein,follows: during the first and second years year of vehicle life 
14.33 	shall be computed, upon 100 percent of the base value; for the second year, 90 percent of 
14.34 	such value; for the third and fourth years year, 90 80 percent of such value; for the fourth 
14.35 	year, 70 percent of such value; for the fifth and sixth years year, 75 60 percent of such 
14.36 	value; for the sixth year, 50 percent of such value; for the seventh year, 60 40 percent of 
15.1 	such value; for the eighth year, 4030 percent of such value; for the ninth year, 30 20
15.2 	percent of such value; for the tenth year, ten percent of such value; for the 11th and each 
15.3 	succeeding year, the sum of $25.
15.4 	(i) In  no event shall the annual additional tax be less than $25. The total tax under 
15.5 	this subdivision shall not exceed $189 for the first renewal period and shall not exceed 
15.6 	$99 for subsequent renewal periods. The total tax under this subdivision on any vehicle 
15.7 	filing its initial registration in Minnesota in the second year of vehicle life shall not 
15.8 	exceed $189 and shall not exceed $99 for subsequent renewal periods. The total tax 
15.9 	under this subdivision on any vehicle filing its initial registration in Minnesota in the 
15.10 	third or subsequent year of vehicle life shall not exceed $99 and shall not exceed $99 in 
15.11 	any subsequent renewal period.
15.12 	(i) As used in this subdivision and section  168.017, the following terms have the 
15.13 	meanings given: "initial registration" means the 12 consecutive months calendar period 
15.14 	from the day of first registration of a vehicle in Minnesota; and "renewal periods" means 
15.15 	the 12 consecutive calendar months periods following the initial registration period.For 
15.16 	any vehicle previously registered in Minnesota, the annual additional tax due under this 
15.17 	subdivision must not exceed the smallest amount of annual additional tax previously 
15.18 	paid or due on the vehicle.

15.19 	EFFECTIVE DATE. This section is effective the day following final enactment, 
15.20 	and applies to (1) any initial registration for which the tax is first due on or after July 1, 
15.21 	2008, and (2) any renewal of registration on a vehicle assigned a registration period of 
15.22 	July 1, 2008, through June 30, 2009, or later.

15.23 	Sec. 2. Minnesota Statutes 2006, section 290.06, is amended by adding a subdivision 
15.24 	to read:
15.25 		Subd. 34.Lower income motor fuels tax credit. (a) An individual who has 
15.26 	attained the age of 18 by the end of the taxable year and cannot be claimed as a dependent 
15.27 	on another taxpayer's return may take a credit against the tax imposed under this chapter. 
15.28 	For married couples filing joint returns, surviving spouses, single filers, and head of 
15.29 	household filers, the credit amount is $25. For married individuals filing separate returns, 
15.30 	the credit amount is $12.50. To qualify, the individual's taxable net income for the taxable 
15.31 	year must not exceed the maximum amount for the individual's filing status, adjusted as 
15.32 	provided in subdivision 2d, that is taxable at the lowest rate under subdivision 2c. For 
15.33 	individuals with taxable net income that exceeds the amount of income taxable for the 
15.34 	individual's filing status at the lowest rate under subdivision 2c, adjusted as provided in 
16.1 	subdivision 2d, the credit amount is zero. For a nonresident or part-year resident, the credit 
16.2 	must be allocated based on the percentage calculated under subdivision 2c, paragraph (e).
16.3 	(b) If the amount of the credit which the individual is eligible to receive under this 
16.4 	subdivision exceeds the individual's liability for tax under this chapter, the commissioner 
16.5 	of revenue shall refund the excess.
16.6 	(c) The amount necessary to pay claims for the refund provided in this section is 
16.7 	appropriated from the general fund to the commissioner.

16.8 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
16.9 	December 31, 2008.

16.10 	Sec. 3. Minnesota Statutes 2006, section 296A.07, subdivision 3, is amended to read:
16.11 		Subd. 3.Rate of tax. The gasoline excise tax is imposed at the following rates:
16.12 	(1) E85 is taxed at the rate of 14.217.75 cents per gallon;
16.13 	(2) M85 is taxed at the rate of 11.414.25 cents per gallon; and
16.14 	(3) all other gasoline is taxed at the rate of 2025 cents per gallon.

16.15 	EFFECTIVE DATE. This section is effective October 1, 2008, and applies to all 
16.16 	gasoline, undyed diesel fuel, and special fuel in distributor storage on that date.

16.17 	Sec. 4. GASOLINE EXCISE TAX; TRANSITION PROVISION.
 16.18 	Notwithstanding Minnesota Statutes, section 296A.07, subdivision 3, before October 
16.19 	1, 2008, the gasoline excise tax is imposed at the following rates:
16.20 	(1) E85 is taxed at the rate of 15.62 cents per gallon; 
16.21 	(2) M85 is taxed at the rate of 12.54 cents per gallon; and 
16.22 	(3) all other gasoline is taxed at the rate of 22 cents per gallon.

16.23 	EFFECTIVE DATE. This section is effective on the first day of the month following 
16.24 	21 days after the date of enactment and applies to all gasoline, undyed diesel fuel, and 
16.25 	special fuel in distributor storage on that date. This section expires October 1, 2008. 

16.26 	Sec. 5. Minnesota Statutes 2006, section 296A.08, subdivision 2, is amended to read:
16.27 		Subd. 2.Rate of tax. The special fuel excise tax is imposed at the following rates:
16.28 	(a) Liquefied petroleum gas or propane is taxed at the rate of 1518.75 cents per 
16.29 	gallon.
16.30 	(b) Liquefied natural gas is taxed at the rate of 1215 cents per gallon.
16.31 	(c) Compressed natural gas is taxed at the rate of $1.739$2.174 per thousand cubic 
16.32 	feet; or 2025 cents per gasoline equivalent,. For purposes of this paragraph, "gasoline 
17.1 	equivalent," as defined by the National Conference on Weights and Measures, which is 
17.2 	5.66 pounds of natural gas. 
17.3 	(d) All other special fuel is taxed at the same rate as the gasoline excise tax as 
17.4 	specified in section 296A.07, subdivision 2. The tax is payable in the form and manner 
17.5 	prescribed by the commissioner. 

17.6 	EFFECTIVE DATE. This section is effective October 1, 2008, and applies to all 
17.7 	gasoline, undyed diesel fuel, and special fuel in distributor storage on that date.

17.8 	Sec. 6. SPECIAL FUEL EXCISE TAX; TRANSITION PROVISION.
 17.9 	Notwithstanding Minnesota Statutes, section 296A.08, subdivision 2, before October 
17.10 	1, 2008, the special fuel excise tax is imposed at the following rates: 
17.11 	(a) Liquefied petroleum gas or propane is taxed at the rate of 16.5 cents per gallon.
17.12 	(b) Liquefied natural gas is taxed at the rate of 13.2 cents per gallon. 
17.13 	(c) Compressed natural gas is taxed at the rate of $1.1913 per thousand cubic feet; or 
17.14 	22 cents per gasoline equivalent. For purposes of this paragraph, "gasoline equivalent," as 
17.15 	defined by the National Conference on Weights and Measures, is 5.66 pounds of gas. 
17.16 	(d) All other special fuel is taxed at the same rate as the gasoline excise tax as 
17.17 	specified in section 4. The tax is payable in the form and manner prescribed by the 
17.18 	commissioner.

17.19 	EFFECTIVE DATE. This section is effective on the first day of the month following 
17.20 	21 days after the date of enactment, and applies to all gasoline, undyed diesel fuel, and 
17.21 	special fuel in distributor storage on that date. This section expires October 1, 2008.

17.22 	Sec. 7. Minnesota Statutes 2006, section 297A.64, subdivision 2, is amended to read:
17.23 		Subd. 2.Fee imposed. A fee equal to threefive percent of the sales price is imposed 
17.24 	on leases or rentals of vehicles subject to the tax under subdivision 1. The lessor on the 
17.25 	invoice to the customer may designate the fee as "a fee imposed by the State of Minnesota 
17.26 	for the registration of rental cars."

17.27 	Sec. 8. Minnesota Statutes 2006, section 297A.815, is amended by adding a 
17.28 	subdivision to read:
17.29 		Subd. 3.Motor vehicle lease sales tax revenue. (a) For purposes of this 
17.30 	subdivision, "net revenue" means an amount equal to:
17.31 	(1) the revenues, including interest and penalties, collected under section 297A.815, 
17.32 	during the fiscal year; less
18.1 	(2) the estimated reduction in individual income tax receipts and the estimated 
18.2 	amount of refunds paid out under section 290.06, subdivision 34, for the fiscal year.
18.3 	(b) On or before June 30 of each fiscal year, the commissioner of revenue shall 
18.4 	estimate the amount of the revenues and subtraction under paragraph (a) for the current 
18.5 	fiscal year.
18.6 	(c) On or after July 1 of the subsequent fiscal year, the commissioner of finance shall 
18.7 	transfer the net revenue as estimated in paragraph (b) from the general fund, as follows:
18.8 	(1) 50 percent to the greater Minnesota transit account;
18.9 	(2) 25 percent to the metropolitan area transit account;
18.10 	(3) 17.25 percent to the county state-aid highway fund; and
18.11 	(4) 7.75 percent to the municipal state-aid street fund.
18.12 	(d) For fiscal years 2010 and 2011, the amount under paragraph (a), clause (1), must 
18.13 	be calculated using the following percentages of the total revenues:
18.14 	(1) for fiscal year 2010, 83.75 percent; and
18.15 	(2) for fiscal year 2011, 93.75 percent.

18.16 	EFFECTIVE DATE. This section is effective July 1, 2009.

18.17 	ARTICLE 4
18.18 	LOCAL OPTION TAXES

18.19 	Section 1. Minnesota Statutes 2006, section 297A.99, subdivision 1, is amended to 
18.20 	read:
18.21 		Subdivision 1.Authorization; scope. (a) A political subdivision of this state may 
18.22 	impose a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3) if 
18.23 	permitted by special law, or (4) if the political subdivision enacted and imposed the tax 
18.24 	before the effective date of section 477A.016 and its predecessor provision. 
18.25 	(b) This section governs the imposition of a general sales tax by the political 
18.26 	subdivision. The provisions of this section preempt the provisions of any special law:
18.27 	(1) enacted before June 2, 1997, or
18.28 	(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law 
18.29 	provision from this section's rules by reference.
18.30 	(c) This section does not apply to or preempt a sales tax on motor vehicles or a 
18.31 	special excise tax on motor vehicles.

18.32 	Sec. 2. [297A.992] METROPOLITAN TRANSPORTATION AREA SALES TAX.
19.1 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
19.2 	the meanings given them:
19.3 	(1) "metropolitan transportation area" means the counties participating in the joint 
19.4 	powers agreement under subdivision 3;
19.5 	(2) "eligible county" means (i) the county of Anoka, Carver, Dakota, Hennepin, 
19.6 	Ramsey, Scott, or Washington, and (ii) a county that has not imposed a transportation sales 
19.7 	and use tax under section 297A.993, and that is (A) adjacent to a metropolitan county, 
19.8 	as defined in section 473.121, subdivision 4, or (B) a member of the Northstar Corridor 
19.9 	Development Authority;
19.10 	(3) "committee" means the Grant Evaluation and Ranking System (GEARS) 
19.11 	Committee;
19.12 	(4) "minimum guarantee county" means any metropolitan county or eligible county 
19.13 	that is participating in the joint powers agreement under subdivision 3, whose proportion 
19.14 	of the annual sales tax revenue under this section collected within that county is less 
19.15 	than or equal to three percent; and
19.16 	(5) "population" means the population, as defined in section 477A.011, subdivision 
19.17 	3, estimated or established by July 15 of the year prior to the calendar year in which 
19.18 	the representatives will serve on the Grant Evaluation and Ranking System Committee 
19.19 	established under subdivision 5.
19.20 		Subd. 2.Authorization; rates. (a) Notwithstanding section 297A.99, subdivisions 
19.21 	1, 2, and 3, or 477A.016, or any other law, the board of a county participating in a 
19.22 	joint powers agreement as specified in this section shall impose by resolution (1) a 
19.23 	transportation sales and use tax at a rate of one-half of one percent on retail sales and uses 
19.24 	taxable under this chapter, and (2) an excise tax of $20 per motor vehicle purchased or 
19.25 	acquired from any person engaged in the business of selling motor vehicles at retail, 
19.26 	occurring within the jurisdiction of the taxing authority. The taxes authorized are to 
19.27 	fund transportation improvements as specified in this section, including debt service on 
19.28 	obligations issued to finance such improvements pursuant to subdivision 7.
19.29 	(b) After June 30, 2028, the amount of the sales and use tax under paragraph (a) is 
19.30 	one-quarter of one percent.
19.31 	(c) The tax imposed under this section is not included in determining if the total tax 
19.32 	on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986, 
19.33 	chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article 
19.34 	12, section 87, or in determining a tax that may be imposed under any other limitations.
19.35 		Subd. 3.Joint powers agreement. Before imposing the taxes authorized in 
19.36 	subdivision 2, an eligible county must declare by resolution of its county board to be part 
20.1 	of the metropolitan transportation area and must enter into a joint powers agreement. The 
20.2 	joint powers agreement:
20.3 	(1) must form a joint powers board, as specified in subdivision 4;
20.4 	(2) must provide a process that allows any eligible county, by resolution of its county 
20.5 	board, to join the joint powers board and impose the taxes authorized in subdivision 2;
20.6 	(3) may provide for withdrawal of a participating county before final termination of 
20.7 	the agreement; and
20.8 	(4) may provide for a weighted voting system for joint powers board decisions.
20.9 		Subd. 4.Joint powers board. (a) The joint powers board must consist of one 
20.10 	or more commissioners of each county that is in the metropolitan transportation area, 
20.11 	appointed by its county board, and the chair of the Metropolitan Council, who must have 
20.12 	voting rights, subject to subdivision 3, clause (4). The joint powers board has the powers 
20.13 	and duties provided in this section and section 471.59.
20.14 	(b) The joint powers board may utilize no more than three-fourths of one percent of 
20.15 	the proceeds of the taxes imposed under this section for ordinary administrative expenses 
20.16 	incurred in carrying out the provisions of this section. Any additional administrative 
20.17 	expenses must be paid by the participating counties.
20.18 	(c) The joint powers board may establish a technical advisory group that is separate 
20.19 	from the GEARS Committee. The group must consist of representatives of cities, counties, 
20.20 	or public agencies, including the Metropolitan Council. The technical advisory group 
20.21 	must be used solely for technical consultation purposes.
20.22 		Subd. 5.Grant application and awards; Grant Evaluation and Ranking System 
20.23 	(GEARS) Committee. (a) The joint powers board shall establish a grant application 
20.24 	process and identify the amount of available funding for grant awards. Grant applications 
20.25 	must be submitted in a form prescribed by the joint powers board. An applicant must 
20.26 	provide, in addition to all other information required by the joint powers board, the 
20.27 	estimated cost of the project, the amount of the grant sought, possible sources of funding 
20.28 	in addition to the grant sought, and identification of any federal funds that will be utilized 
20.29 	if the grant is awarded. A grant application seeking transit capital funding must identify 
20.30 	the source of money necessary to operate the transit improvement.
20.31 	(b) The joint powers board shall establish a timeline and procedures for the award of 
20.32 	grants, and may award grants only to the state and political subdivisions. The board shall 
20.33 	define objective criteria for the award of grants, which must include, but not be limited to, 
20.34 	consistency with the most recent version of the transportation policy plan adopted by the 
20.35 	Metropolitan Council under section 473.146. The joint powers board shall maximize the 
20.36 	availability and use of federal funds in projects funded under this section.
21.1 	(c) The joint powers board shall establish a GEARS Committee, which must consist 
21.2 	of:
21.3 	(1) one county commissioner from each county that is in the metropolitan 
21.4 	transportation area, appointed by its county board;
21.5 	(2) one elected city representative from each county that is in the metropolitan 
21.6 	transportation area;
21.7 	(3) one additional elected city representative from each county for every additional 
21.8 	400,000 in population, or fraction of 400,000, in the county that is above 400,000 in 
21.9 	population; and
21.10 	(4) the chair of the Metropolitan Council Transportation Committee.
21.11 	(d) Each city representative must be elected at a meeting of cities in the metropolitan 
21.12 	transportation area, which must be convened for that purpose by the Association of 
21.13 	Metropolitan Municipalities.
21.14 	(e) The committee shall evaluate grant applications following objective criteria 
21.15 	established by the joint powers board, and must provide to the joint powers board a 
21.16 	selection list of transportation projects that includes a priority ranking.
21.17 	(f) A grant award for a transit project located within the metropolitan area, as defined 
21.18 	in section 473.121, subdivision 2, may be funded only after the Metropolitan Council 
21.19 	reviews the project for consistency with the transit portion of the Metropolitan Council 
21.20 	policy plan and one of the following occurs: 
21.21 	(1) the Metropolitan Council finds the project to be consistent;
21.22 	(2) the Metropolitan Council initially finds the project to be inconsistent, but after a 
21.23 	good faith effort to resolve the inconsistency through negotiations with the joint powers 
21.24 	board, agrees that the grant award may be funded; or
21.25 	(3) the Metropolitan Council finds the project to be inconsistent, and submits the 
21.26 	consistency issue for final determination to a panel, which determines the project to be 
21.27 	consistent. The panel is composed of a member appointed by the chair of the Metropolitan 
21.28 	Council, a member appointed by the joint powers board, and a member agreed upon by 
21.29 	both the chair and the joint powers board.
21.30 	(g) Grants must be funded by the proceeds of the taxes imposed under this section, 
21.31 	bonds, notes, or other obligations issued by the joint powers board under subdivision 7.
21.32 	(h) Notwithstanding the provisions of this subdivision, in fiscal year 2009, of the 
21.33 	initial revenue collected under this section, the joint powers board shall allocate at least 
21.34 	$30,783,000 to the Metropolitan Council for operating assistance for transit.
21.35 		Subd. 6.Allocation of grant awards. (a) The board must allocate grant awards 
21.36 	as follows:
22.1 	(1) no less than 50 percent for transit, for the following purposes:
22.2 	(i) capital improvements to transit ways, including, but not limited to, commuter 
22.3 	rail rolling stock, light rail vehicles, and transit way buses;
22.4 	(ii) capital costs for park-and-ride facilities, as defined in section 174.256, 
22.5 	subdivision 2;
22.6 	(iii) feasibility studies, planning, alternatives analyses, environmental studies, 
22.7 	engineering, property acquisition for transit way purposes, and construction of transit 
22.8 	ways; and
22.9 	(iv) operating assistance for transit ways;
22.10 	(2) no less than 25 percent for construction or reconstruction of trunk highways or 
22.11 	local roads of regional significance; and
22.12 	(3) 25 percent for (i) any of the purposes specified in clauses (1) and (2), and 
22.13 	(ii) planning, studies, design, construction, maintenance, and operation of pedestrian 
22.14 	programs and bicycle programs and pathways.
22.15 	(b) The joint powers board must annually award grants to each minimum guarantee 
22.16 	county in an amount no less than the amount of sales tax revenue collected within that 
22.17 	county.
22.18 	(c) No more than 1.25 percent of the total awards may be annually allocated for the 
22.19 	purposes specified in paragraph (a), clause (3), item (ii).
22.20 		Subd. 7.Bonds. (a) The joint powers board or any county, acting under a joint 
22.21 	powers agreement as specified in this section, may, by resolution, authorize, issue, and sell 
22.22 	its bonds, notes, or other obligations for the purpose of funding grants under subdivision 
22.23 	6. The joint powers board or county may also, by resolution, issue bonds to refund the 
22.24 	bonds issued pursuant to this subdivision.
22.25 	(b) The bonds of the joint powers board must be limited obligations, payable solely 
22.26 	from or secured by taxes levied under this section.
22.27 	(c) The bonds of any county may be limited obligations, payable solely from or 
22.28 	secured by taxes levied under this section. A county may also pledge its full faith, credit, 
22.29 	and taxing power as additional security for the bonds.
22.30 	(d) Bonds may be issued in one or more series and sold without an election. The 
22.31 	bonds shall be secured, bear the interest rate or rates or a variable rate, have the rank or 
22.32 	priority, be executed in the manner, be payable in the manner, mature, and be subject to 
22.33 	the defaults, redemptions, repurchases, tender options, or other terms, and shall be sold 
22.34 	in such manner as the joint powers board, the regional railroad authority, or the county 
22.35 	may determine.
23.1 	(e) The joint powers board or any regional railroad authority or any county may 
23.2 	enter into and perform all contracts deemed necessary or desirable by it to issue and secure 
23.3 	the bonds, including an indenture of trust with a trustee within or without the state.
23.4 	(f) Except as otherwise provided in this subdivision, the bonds must be issued and 
23.5 	sold in the manner provided under chapter 475.
23.6 	(g) The joint powers board or any regional railroad authority wholly within the 
23.7 	metropolitan transportation area also may authorize, issue, and sell its bonds, notes, or 
23.8 	other obligations for the purposes, and in accordance with the procedures, set forth in 
23.9 	section 398A.07 to fund grants as provided in subdivision 6. The bonds of any regional 
23.10 	railroad authority may be limited obligations, payable solely from or secured by taxes 
23.11 	levied under this section. A regional railroad authority may also pledge its taxing powers 
23.12 	as additional security for the bonds.
23.13 		Subd. 8.Allocation of revenues. After the deductions allowed in section 297A.99, 
23.14 	subdivision 11, the commissioner of revenue shall remit the proceeds of the taxes imposed 
23.15 	under this section on a monthly basis, as directed by the joint powers board under this 
23.16 	section.
23.17 		Subd. 9.Administration, collection, enforcement. Except as otherwise provided 
23.18 	in this section, the provisions of section 297A.99, subdivisions 4 and 6 to 12a, govern the 
23.19 	administration, collection, and enforcement of the tax authorized under this section.
23.20 		Subd. 10.Termination of taxes. (a) The taxes imposed under section 297A.99, 
23.21 	subdivision 1, by a county that withdraws from the joint powers agreement pursuant to 
23.22 	subdivision 3, clause (3), shall terminate when the county has satisfied its portion, as 
23.23 	defined in the joint powers agreement, of all outstanding bonds or obligations entered into 
23.24 	while the county was a member of the agreement.
23.25 	(b) If the joint powers agreement under subdivision 3 is terminated, the taxes 
23.26 	imposed under section 297A.99, subdivision 1, at the time of the agreement termination 
23.27 	will terminate when all outstanding bonds or obligations are satisfied. The auditors of the 
23.28 	counties in which the taxes are imposed shall see to the administration of this paragraph.
23.29 		Subd. 11.Report. The joint powers board shall report annually by February 1 to the 
23.30 	house of representatives and senate committees having jurisdiction over transportation 
23.31 	policy and finance concerning the revenues received and grants awarded.
23.32 		Subd. 12.Grant awards to Metropolitan Council. Any grant award under this 
23.33 	section made to the Metropolitan Council must supplement, and must not supplant, 
23.34 	operating and capital assistance provided by the state.

23.35 	EFFECTIVE DATE. This section is effective the day following final enactment, 
23.36 	except that subdivision 2 is effective the first day of a calendar quarter beginning at least 
24.1 	90 days after the formation of the joint powers board under subdivision 4. This section 
24.2 	expires October 2, 2008, if the sales and use tax under subdivision 2 has not been imposed.

24.3 	Sec. 3. [297A.993] GREATER MINNESOTA TRANSPORTATION SALES AND 
24.4 	USE TAX.
24.5 		Subdivision 1.Authorization; rates. Notwithstanding section 297A.99, 
24.6 	subdivisions 1, 2, 3, 5, and 13, or 477A.016, or any other law, the board of a county outside 
24.7 	the metropolitan transportation area, as defined under section 297A.992, subdivision 1, or 
24.8 	more than one county outside the metropolitan transportation area acting under a joint 
24.9 	powers agreement, may impose (1) a transportation sales tax at a rate of one-half of one 
24.10 	percent on retail sales and uses taxable under this chapter, and (2) an excise tax of $20 per 
24.11 	motor vehicle purchased or acquired from any person engaged in the business of selling 
24.12 	motor vehicles at retail, occurring within the jurisdiction of the taxing authority. The taxes 
24.13 	imposed under this section are subject to approval by a majority of the voters of the county 
24.14 	or counties at a general election who vote on the question to impose the taxes.
24.15 		Subd. 2.Allocation; termination. The proceeds of the taxes must be dedicated 
24.16 	exclusively to payment of the cost of a specific transportation project or improvement. 
24.17 	The transportation project or improvement must be designated by the board of the county, 
24.18 	or more than one county acting under a joint powers agreement. The taxes must terminate 
24.19 	after the project or improvement has been completed.
24.20 		Subd. 3.Administration, collection, enforcement. The administration, collection, 
24.21 	and enforcement provisions in section 297A.99, subdivisions 4 and 6 to 12, apply to all 
24.22 	taxes imposed under this section.

24.23 	ARTICLE 5
24.24 	COUNTY STATE-AID HIGHWAY FUND DISTRIBUTION

24.25 	Section 1. Minnesota Statutes 2006, section 162.06, is amended to read:
24.26 	162.06 ACCRUALS TO COUNTY STATE-AID HIGHWAY FUND; 
24.27 	ACCOUNTS.
24.28 		Subdivision 1.Estimate. (a) By December 15 of each year the commissioner shall 
24.29 	estimate the amount of money that will be available to the county state-aid highway fund 
24.30 	during that fiscal year. The amount available must be based on actual receipts from July 
24.31 	1 through November 30, the unallocated fund balance, and the projected receipts for 
24.32 	the remainder of the fiscal year. The total amount available, except for deductions as 
24.33 	provided herein in this section, shall be apportioned by the commissioner to the counties 
24.34 	as hereinafter provided in section 162.07.
25.1 	(b) For purposes of this section, "amount available" means the amount estimated in 
25.2 	paragraph (a).
25.3 		Subd. 2.Administrative costs of department. Two percent must be deducted from 
25.4 	the total amount available in the county state-aid highway fund, set aside in a separate 
25.5 	account, and used for administrative costs incurred by the state Transportation Department 
25.6 	in carrying out the provisions relating to the county state-aid highway system.
25.7 		Subd. 3.Disaster account. (a) After deducting administrative costs as provided in 
25.8 	subdivision 2, the commissioner shall set aside each year a sum of money equal to one 
25.9 	percent of the remaining money in the county state-aid highway fund amount available
25.10 	to provide for a disaster account; provided that the total amount of money in the disaster 
25.11 	account must never exceed two percent of the total sums to be apportioned to the counties. 
25.12 	This sum The money must be used to provide aid to any county encountering disasters 
25.13 	or unforeseen events affecting its county state-aid highway system, and resulting in an 
25.14 	undue and burdensome financial hardship.
25.15 	(b) Any county desiring aid by reason of disaster or unforeseen event shall request 
25.16 	the aid in the form required by the commissioner. Upon receipt of the request, the 
25.17 	commissioner shall appoint a board consisting of two representatives of the counties, who 
25.18 	must be either a county engineer or member of a county board, from counties other than the 
25.19 	requesting county, and a representative of the commissioner. The board shall investigate 
25.20 	the matter and report its findings and recommendations in writing to the commissioner.
25.21 	(c) Final determination of the amount of aid, if any, to be paid to the county from the 
25.22 	disaster account must be made by the commissioner. Upon determining to aid a requesting 
25.23 	county, the commissioner shall certify to the commissioner of finance the amount of the 
25.24 	aid, and the commissioner of finance shall then issue a warrant in that amount payable 
25.25 	to the county treasurer of the county. Money so paid must be expended on the county 
25.26 	state-aid highway system in accordance with the rules of the commissioner.
25.27 		Subd. 4.Research account. (a) Each year the screening board, provided for in 
25.28 	section 162.07, subdivision 5, may recommend to the commissioner a sum of money that 
25.29 	the commissioner shall set aside from the county state-aid highway fund amount available
25.30 	and credit to a research account. The amount so recommended and set aside shall not 
25.31 	exceed one-half of one percent of the preceding year's apportionment sum distribution 
25.32 	amount, as defined in section 162.07, subdivision 1a. 
25.33 	(b) Any money so set aside shall be used by the commissioner for the purpose of:
25.34 	(1) conducting research for improving the design, construction, maintenance and 
25.35 	environmental compatibility of state-aid highways and appurtenances;
26.1 	(2) constructing research elements and reconstructing or replacing research elements 
26.2 	that fail; and
26.3 	(3) conducting programs for implementing and monitoring research results.
26.4 	(c) Any balance remaining in the research account at the end of each year from 
26.5 	the sum set aside for the year immediately previous, shall be transferred to the county 
26.6 	state-aid highway fund.
26.7 		Subd. 5.State park road account. After deducting for administrative costs and 
26.8 	for the disaster account and research account as heretofore provided from the remainder 
26.9 	of the total sum provided for in subdivision 1, there shall be deducted from the amount 
26.10 	available as provided in this section, the commissioner shall deduct a sum equal to the 
26.11 	three-quarters of one percent of the remainder. The sum so deducted shall be set aside 
26.12 	in a separate account and shall be used for (1) the establishment, location, relocation, 
26.13 	construction, reconstruction, and improvement of those roads included in the county 
26.14 	state-aid highway system under Minnesota Statutes 1961, section 162.02, subdivision 6, 
26.15 	which border and provide substantial access to an outdoor recreation unit as defined in 
26.16 	section 86A.04 or which provide access to the headquarters of or the principal parking 
26.17 	lot located within such a unit, and (2) the reconstruction, improvement, repair, and 
26.18 	maintenance of county roads, city streets, and town roads that provide access to public 
26.19 	lakes, rivers, state parks, and state campgrounds. Roads described in clause (2) are not 
26.20 	required to meet county state-aid highway standards. At the request of the commissioner 
26.21 	of natural resources the counties wherein such roads are located shall do such work as 
26.22 	requested in the same manner as on any county state-aid highway and shall be reimbursed 
26.23 	for such construction, reconstruction, or improvements from the amount set aside by 
26.24 	this subdivision. Before requesting a county to do work on a county state-aid highway 
26.25 	as provided in this subdivision, the commissioner of natural resources must obtain 
26.26 	approval for the project from the County State-Aid Screening Board. The screening 
26.27 	board, before giving its approval, must obtain a written comment on the project from the 
26.28 	county engineer of the county requested to undertake the project. Before requesting a 
26.29 	county to do work on a county road, city street, or a town road that provides access to 
26.30 	a public lake, a river, a state park, or a state campground, the commissioner of natural 
26.31 	resources shall obtain a written comment on the project from the county engineer of 
26.32 	the county requested to undertake the project. Any sums paid to counties or cities in 
26.33 	accordance with this subdivision shall reduce the money needs of said counties or cities in 
26.34 	the amounts necessary to equalize their status with those counties or cities not receiving 
26.35 	such payments. Any balance of the amount so set aside, at the end of each year shall be 
26.36 	transferred to the county state-aid highway fund. 
27.1 		Subd. 6.County state-aid highway revolving loan account. A county state-aid 
27.2 	highway revolving loan account is created in the transportation revolving loan fund. The 
27.3 	commissioner may transfer to the account the amount allocated under section 162.065. 
27.4 	Money in the account may be used to make loans. Funds in the county state-aid highway 
27.5 	revolving loan account may be used only for aid in the construction, improvement, and 
27.6 	maintenance of county state-aid highways. Funds in the account may not be used for any 
27.7 	toll facilities project or congestion-pricing project. Repayments and interest from loans 
27.8 	from the county state-aid highway revolving loan account must be credited to that account. 
27.9 	Money in the account is annually appropriated to the commissioner and does not lapse. 
27.10 	Interest earned from investment of money in this account must be deposited in the county 
27.11 	state-aid highway revolving loan account. 

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

28.10 	Sec. 3. Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision 
28.11 	to read:
28.12 		Subd. 1a.Apportionment sum and excess sum. (a) For purposes of this 
28.13 	subdivision, "distribution amount" means the amount identified in section 162.06, 
28.14 	subdivision 1, after the deductions provided for in section 162.06 for administrative costs, 
28.15 	disaster account, research account, and state park road account.
28.16 	(b) The apportionment sum is calculated by subtracting the excess sum, as calculated 
28.17 	in paragraph (c), from the distribution amount.
28.18 	(c) The excess sum is calculated as the sum of revenue within the distribution 
28.19 	amount:
28.20 	(1) attributed to that portion of the gasoline excise tax rate under section 296A.07, 
28.21 	subdivision 3, in excess of 20 cents per gallon, and to that portion of the excise tax rates 
28.22 	in excess of the energy equivalent of a gasoline excise tax rate of 20 cents per gallon 
28.23 	for E85 and M85 under section 296A.07, subdivision 3, and special fuel under section 
28.24 	296A.08, subdivision 2;
28.25 	(2) attributed to a change in the passenger vehicle registration tax under section 
28.26 	168.013, imposed on or after July 1, 2008, that exceeds (i) the amount collected in fiscal 
28.27 	year 2008, multiplied by (ii) the annual average United States Consumer Price Index for 
28.28 	the calendar year previous to the current calendar year, divided by the annual average 
28.29 	United States Consumer Price Index for calendar year 2007; and
28.30 	(3) attributed to that portion of the motor vehicle sales tax revenue in excess of the 
28.31 	percentage allocated to the county state-aid highway fund in fiscal year 2007.
28.32 	(d) For purposes of this subdivision, the United States Consumer Price Index 
28.33 	identified in paragraph (c) is for all urban consumers, United States city average, as 
28.34 	determined by the United States Department of Labor.

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

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

29.15 	ARTICLE 6
29.16 	OTHER TRANSPORTATION FINANCE

29.17 	Section 1. Minnesota Statutes 2006, section 160.84, subdivision 1, is amended to read:
29.18 		Subdivision 1.Scope. The terms used in sections 160.84 to 160.92 160.98 have the 
29.19 	meanings given them in this section and section 160.02. 

29.20 	Sec. 2. [160.845] RESTRICTIONS ON TOLL FACILITY.
29.21 	(a) A road authority, including the governing body of a city, or a private operator 
29.22 	may not convert, transfer, or utilize any portion of a highway to impose tolls or for use 
29.23 	as a toll facility. A road authority, including the governing body of a city, or a private 
29.24 	operator may not limit operation of a commercial motor vehicle, as defined in section 
29.25 	169.01, subdivision 75, to a toll facility or otherwise require that a commercial motor 
29.26 	vehicle use the tolled portion of a highway.
29.27 	(b) This section does not apply to (1) any toll facility or high-occupancy vehicle lane 
29.28 	constructed, converted, or established before September 1, 2007, (2) any additional lane, 
29.29 	including a priced dynamic shoulder lane, high-occupancy vehicle lane, or high-occupancy 
29.30 	toll lane, added to a highway after September 1, 2007, and (3) any other general purpose 
29.31 	lane that adds capacity. 

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

30.1 	Sec. 3. [160.98] PROHIBITION ON ROAD AND BRIDGE PRIVATIZATION.
30.2 	A road authority may not sell, lease, execute a development agreement for a BOT 
30.3 	facility or BTO facility that transfers an existing highway lane, or otherwise relinquish 
30.4 	management of a highway, if the highway is retained or utilized by the buyer, lessor, or 
30.5 	operator for highway purposes. Nothing in this section prevents sale, reconveyance, or 
30.6 	easements under sections 160.274, 161.23, 161.41, 161.411, 161.431, 161.44, 161.442, or 
30.7 	any other similar provision.

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

30.9 	Sec. 4. Minnesota Statutes 2006, section 161.081, subdivision 3, is amended to read:
30.10 		Subd. 3.Flexible highway account; turnback accounts. (a) The flexible highway 
30.11 	account is created in the state treasury. Money in the account may be used either for the:
30.12 	(1) restoration of former trunk highways that have reverted to counties or to 
30.13 	statutory or home rule charter cities or for regular trunk highway purposes, or for trunk 
30.14 	highways that will be restored and subsequently turned back by agreement between the 
30.15 	commissioner and the local road authority;
30.16 	(2) safety improvements on county highways, municipal highways, streets, or town 
30.17 	roads; and
30.18 	(3) routes of regional significance.
30.19 	(b) For purposes of this subdivision, "restoration" means the level of effort required 
30.20 	to improve the route that will be turned back to an acceptable condition as determined 
30.21 	by agreement made between the commissioner and the county or city before the route 
30.22 	is turned back.
30.23 	(c) The commissioner shall review the need for funds to restore highways that 
30.24 	have been or will be turned back and the need for funds for the trunk highway system. 
30.25 	The commissioner shall determine, on a biennial basis, the percentage of this funds in 
30.26 	the flexible highway account to be distributed to each district, and within each district the 
30.27 	percentage to be used for county turnbacks, for municipal turnbacks, and for regular 
30.28 	trunk highway projects each of the purposes specified in paragraph (a). Money in the 
30.29 	account may be used for safety improvements and routes of regional significance only 
30.30 	after money is set aside to restore the identified turnbacks. The commissioner shall make 
30.31 	this determinationthese determinations only after meeting and holding discussions with 
30.32 	committees selected by the statewide associations of both county commissioners and 
30.33 	municipal officials. The commissioner shall, to the extent feasible, annually allocate 50 
30.34 	percent of the funds in the flexible highway account to the department's metropolitan 
30.35 	district, and 50 percent to districts in greater Minnesota.
31.1 	(d) Money that will be used for the restoration of trunk highways that have reverted 
31.2 	or that will revert to cities must be deposited in the municipal turnback account, which is 
31.3 	created in the state treasury.
31.4 	(e) Money that will be used for the restoration of trunk highways that have reverted 
31.5 	or that will revert to counties must be deposited in the county turnback account, which is 
31.6 	created in the state treasury.
31.7 	(f) Money that will be used for safety improvements must be deposited in the 
31.8 	highway safety improvement account, which is created in the state treasury to be used 
31.9 	as grants to statutory or home rule charter cities, towns, and counties to assist in paying 
31.10 	the costs of constructing or reconstructing city streets, county highways, or town roads 
31.11 	to reduce crashes, deaths, injuries, and property damage.
31.12 	(g) Money that will be used for routes of regional significance must be deposited in 
31.13 	the routes of regional significance account, which is created in the state treasury, and used 
31.14 	as grants to statutory or home rule charter cities, towns, and counties to assist in paying 
31.15 	the costs of constructing or reconstructing city streets, county highways, or town roads 
31.16 	with statewide or regional significance that have not been fully funded through other state, 
31.17 	federal, or local funding sources.
31.18 	(h) As part of each biennial budget submission to the legislature, the commissioner 
31.19 	shall describe how the money in the flexible highway account will be apportioned among 
31.20 	the county turnback account, the municipal turnback account, and the trunk highway 
31.21 	fund for routes turned back to local governments by agreement, the highway safety 
31.22 	improvement account, and the routes of regional significance account.
31.23 	(g) Money apportioned from the flexible highway account to the trunk highway fund 
31.24 	must be used for state road construction and engineering costs.

31.25 	EFFECTIVE DATE.  Paragraph (h) is effective January 1, 2009, and the remainder 
31.26 	of this section is effective July 1, 2009.

31.27 	Sec. 5. [165.14] TRUNK HIGHWAY BRIDGE IMPROVEMENT PROGRAM.
31.28 		Subdivision 1.Definition. For purposes of this section, "program" means the trunk 
31.29 	highway bridge improvement program established under this section.
31.30 		Subd. 2.Program created. The commissioner shall develop a trunk highway bridge 
31.31 	improvement program for accelerating repair and replacement of trunk highway bridges 
31.32 	throughout the state. The program receives funding for bridge projects as specified by law.
31.33 		Subd. 3.Program requirements. (a) The commissioner shall develop an inventory 
31.34 	of bridges included in the program. The inventory must include all bridges on the trunk 
31.35 	highway system in Minnesota that are classified as fracture-critical or structurally deficient, 
32.1 	or constitute a priority project, as identified by the commissioner. In determining whether 
32.2 	a bridge is a priority project, the commissioner may consider national bridge inventory 
32.3 	(NBI) condition codes, bridge classification as functionally obsolete, the year in which 
32.4 	the bridge was built, the history of bridge maintenance and inspection report findings, the 
32.5 	average daily traffic count, engineering judgments with respect to the safety or condition 
32.6 	of the bridge, and any other factors specifically identified by the commissioner.
32.7 	(b) For each bridge included in the inventory, the commissioner must provide the 
32.8 	following information: a summary of the bridge, including but not limited to, county 
32.9 	and department district, route number, feature crossed, the year in which the bridge was 
32.10 	built, average daily traffic count, load rating, bridge length and deck area, and main span 
32.11 	type; the condition ratings for the deck, superstructure, and substructure; identification of 
32.12 	whether the bridge is structurally deficient, functionally obsolete, or fracture-critical; the 
32.13 	sufficiency rating; a brief description of the work planned for the bridge, including work 
32.14 	type needed; an estimate of total costs related to the bridge, which may include general 
32.15 	and planning cost estimates; and, the year or range of years in which the work is planned.
32.16 		Subd. 4.Prioritization of bridge projects. (a) The commissioner shall classify all 
32.17 	bridges in the program into tier 1, 2, or 3 bridges, where tier 1 is the highest tier. Unless 
32.18 	the commissioner identifies a reason for proceeding otherwise, before commencing bridge 
32.19 	projects in a lower tier, all bridge projects within a higher tier must to the extent feasible 
32.20 	be selected and funded in the approved state transportation improvement program, at 
32.21 	any stage in the project development process, solicited for bids, in contract negotiation, 
32.22 	under construction, or completed.
32.23 	(b) The classification of each tier is as follows:
32.24 	(1) tier 1 consists of any bridge in the program that (i) has an average daily traffic 
32.25 	count that is above 1,000 and has a sufficiency rating that is at or below 50, or (ii) is 
32.26 	identified by the commissioner as a priority project;
32.27 	(2) tier 2 consists of any bridge that is not a tier 1 bridge, and (i) is classified as 
32.28 	fracture-critical, or (ii) has a sufficiency rating that is at or below 80; and
32.29 	(3) tier 3 consists of any other bridge in the program that is not a tier 1 or tier 2 bridge.
32.30 	(c) By June 30, 2018, all tier 1 and tier 2 bridges originally included in the program 
32.31 	must be under contract for repair or replacement with a new bridge that contains a 
32.32 	load-path-redundant design, except that a specific bridge may remain in continued service 
32.33 	if the reasons are documented in the report required under subdivision 5.
32.34 	(d) The commissioner shall establish criteria for determining the priority of bridge 
32.35 	projects within each tier, and must include safety considerations as a criterion.
33.1 		Subd. 5.Statewide transportation planning report. In conjunction with each 
33.2 	update to the Minnesota statewide transportation plan, or at least every six years, the 
33.3 	commissioner shall submit a report to the chairs and ranking minority members of the 
33.4 	house of representatives and senate committees with jurisdiction over transportation 
33.5 	finance. The report must include:
33.6 	(1) an explanation of the criteria and decision-making processes used to prioritize 
33.7 	bridge projects;
33.8 	(2) a historical and projected analysis of the extent to which all trunk highway 
33.9 	bridges meet bridge performance targets;
33.10 	(3) a summary of bridge projects (i) completed in the previous six years or since the 
33.11 	last update to the Minnesota statewide transportation plan, and (ii) currently in progress 
33.12 	under the program;
33.13 	(4) a summary of bridge projects scheduled in the next four fiscal years and included 
33.14 	in the state transportation improvement program;
33.15 	(5) a projection of annual needs over the next 20 years;
33.16 	(6) a calculation funding necessary to meet the completion date under subdivision 4, 
33.17 	paragraph (c), compared to the total amount of bridge-related funding available; and
33.18 	(7) for any tier 1 fracture-critical bridge that is repaired but not replaced, an 
33.19 	explanation of the reasons for repair instead of replacement.
33.20 		Subd. 6.Annual report. Annually by January 15, the commissioner shall submit 
33.21 	a report on the program to the chairs and ranking minority members of the house of 
33.22 	representatives and senate committees with jurisdiction over transportation finance. The 
33.23 	report must include the inventory information required under subdivision 3, and an 
33.24 	analysis, including any recommendations for changes, of the adequacy and efficacy of 
33.25 	(1) the program requirements under subdivision 3, and (2) the prioritization requirements 
33.26 	under subdivision 4.

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

33.28 	Sec. 6. Minnesota Statutes 2006, section 171.29, subdivision 2, is amended to read:
33.29 		Subd. 2.Reinstatement fees and surcharges allocated and appropriated. (a) 
33.30 	An individual whose driver's license has been revoked as provided in subdivision 1, 
33.31 	except under section 169A.52, 169A.54, or 609.21, must pay a $30 fee before the driver's 
33.32 	license is reinstated.
33.33 	(b) A person whose driver's license has been revoked as provided in subdivision 
33.34 	1 under section 169A.52, 169A.54, or 609.21, must pay a $250 fee plus a $40 $430
33.35 	surcharge before the driver's license is reinstated, except as provided in paragraph (f). 
34.1 	Beginning July 1, 2002, the surcharge is $145. Beginning July 1, 2003, the surcharge is 
34.2 	$430. The $250 fee is to be credited as follows:
34.3 	(1) Twenty percent must be credited to the driver services operating account in the 
34.4 	special revenue fund as specified in section 299A.705.
34.5 	(2) Sixty-seven percent must be credited to the general fund.
34.6 	(3) Eight percent must be credited to a separate account to be known as the Bureau 
34.7 	of Criminal Apprehension account. Money in this account may be appropriated to the 
34.8 	commissioner of public safety and the appropriated amount must be apportioned 80 percent 
34.9 	for laboratory costs and 20 percent for carrying out the provisions of section 299C.065.
34.10 	(4) Five percent must be credited to a separate account to be known as the vehicle 
34.11 	forfeiture account, which is created in the special revenue fund. The money in the account 
34.12 	is annually appropriated to the commissioner for costs of handling vehicle forfeitures.
34.13 	(c) The revenue from $50 of each the surcharge must be credited to a separate 
34.14 	account to be known as the traumatic brain injury and spinal cord injury account. The 
34.15 	revenue from $50 of the surcharge on a reinstatement under paragraph (f) is credited from 
34.16 	the first installment payment to the traumatic brain injury and spinal cord injury account.
34.17 	The money in the account is annually appropriated to the commissioner of health to be 
34.18 	used as follows: 83 percent for contracts with a qualified community-based organization 
34.19 	to provide information, resources, and support to assist persons with traumatic brain 
34.20 	injury and their families to access services, and 17 percent to maintain the traumatic 
34.21 	brain injury and spinal cord injury registry created in section 144.662. For the purposes 
34.22 	of this paragraph, a "qualified community-based organization" is a private, not-for-profit 
34.23 	organization of consumers of traumatic brain injury services and their family members. 
34.24 	The organization must be registered with the United States Internal Revenue Service under 
34.25 	section 501(c)(3) as a tax-exempt organization and must have as its purposes:
34.26 	(1) the promotion of public, family, survivor, and professional awareness of the 
34.27 	incidence and consequences of traumatic brain injury;
34.28 	(2) the provision of a network of support for persons with traumatic brain injury, 
34.29 	their families, and friends;
34.30 	(3) the development and support of programs and services to prevent traumatic 
34.31 	brain injury;
34.32 	(4) the establishment of education programs for persons with traumatic brain injury; 
34.33 	and
34.34 	(5) the empowerment of persons with traumatic brain injury through participation 
34.35 	in its governance.
35.1 	A patient's name, identifying information, or identifiable medical data must not be 
35.2 	disclosed to the organization without the informed voluntary written consent of the patient 
35.3 	or patient's guardian or, if the patient is a minor, of the parent or guardian of the patient.
35.4 	(d) The remainder of the surcharge must be credited to a separate account to be 
35.5 	known as the remote electronic alcohol-monitoring program account. The commissioner 
35.6 	shall transfer the balance of this account to the commissioner of finance on a monthly 
35.7 	basis for deposit in the general fund.
35.8 	(e) When these fees are collected by a licensing agent, appointed under section 
35.9 	171.061, a handling charge is imposed in the amount specified under section 171.061, 
35.10 	subdivision 4. The reinstatement fees and surcharge must be deposited in an approved 
35.11 	depository as directed under section 171.061, subdivision 4.
35.12 	(f) A person whose driver's license has been revoked as provided in subdivision 
35.13 	1 under section 169A.52 or 169A.54 and who the court certifies as being financially 
35.14 	eligible for a public defender under section 611.17, may choose to pay 50 percent and 
35.15 	an additional $25 of the total amount of the surcharge and 50 percent of the fee required 
35.16 	under paragraph (b) to reinstate the person's driver's license, provided the person meets all 
35.17 	other requirements of reinstatement. If a person chooses to pay 50 percent of the total and 
35.18 	an additional $25, the driver's license must expire after two years. The person must pay an 
35.19 	additional 50 percent less $25 of the total to extend the license for an additional two years, 
35.20 	provided the person is otherwise still eligible for the license. After this final payment of 
35.21 	the surcharge and fee, the license may be renewed on a standard schedule, as provided 
35.22 	under section 171.27. A handling charge may be imposed for each installment payment. 
35.23 	Revenue from the handling charge is credited to the driver services operating account in 
35.24 	the special revenue fund and is appropriated to the commissioner.
35.25 	(g) Any person making installment payments under paragraph (f), whose driver's 
35.26 	license subsequently expires, or is canceled, revoked, or suspended before payment of 
35.27 	100 percent of the surcharge and fee, must pay the outstanding balance due for the initial 
35.28 	reinstatement before the driver's license is subsequently reinstated. Upon payment of 
35.29 	the outstanding balance due for the initial reinstatement, the person may pay any new 
35.30 	surcharge and fee imposed under paragraph (b) in installment payments as provided 
35.31 	under paragraph (f).

35.32 	EFFECTIVE DATE. This section is effective July 1, 2009.

35.33 	Sec. 7. [398A.10] TRANSIT FUNDING.
36.1 		Subdivision 1.Capital costs. A county regional railroad authority may not 
36.2 	contribute more than ten percent of the capital costs of a light rail transit or commuter 
36.3 	rail project.
36.4 		Subd. 2.Operating and maintenance costs. A county regional railroad authority 
36.5 	may not contribute any funds to pay the operating and maintenance costs for a light rail 
36.6 	transit or commuter rail project. If a county regional railroad authority is contributing 
36.7 	funds for operating and maintenance costs on a light rail transit or commuter rail project 
36.8 	on the date of the enactment of this act, the authority may continue to contribute funds 
36.9 	for these purposes until January 1, 2009.

36.10 	EFFECTIVE DATE. This section is effective the day after the metropolitan 
36.11 	transportation area sales tax is imposed under Minnesota Statutes, section 297A.992, 
36.12 	subdivision 2.

36.13 	Sec. 8. FUNDING FOR RAIL TRANSIT WAYS.
 36.14 	In order to accelerate the development of metropolitan area rail transit projects, 
36.15 	reduce construction costs, provide transportation options, increase mobility, support 
36.16 	economic growth, and meet environmental challenges, the Metropolitan Council shall 
36.17 	initiate negotiations with the federal Transit Administration to secure federal funds for a 
36.18 	single comprehensive program of rail transit way development, to include Rush Line, Red 
36.19 	Rock, Southwest Corridor, and an extension of NorthStar commuter rail to St. Cloud.