1.1 	A bill for an act
1.2 	relating to transportation; modifying or adding provisions relating to highways, 
1.3 	motor vehicles, traffic regulations, drivers' licenses, transit, railroads, motor 
1.4 	carriers, and other transportation-related programs or activities; imposing 
1.5 	penalties; requiring reports;amending Minnesota Statutes 2006, sections 
1.6 	86B.825, subdivision 5; 123B.88, subdivision 3; 161.081, subdivision 3, as 
1.7 	amended, by adding subdivisions; 168.011, subdivision 7; 168.012, subdivision 
1.8 	1; 168.013, subdivision 1e; 168.021, subdivisions 1, 2; 168.09, subdivision 7; 
1.9 	168.185; 168A.03, subdivision 1; 168A.05, subdivision 9; 168B.051, subdivision 
1.10 	2; 168B.06, subdivisions 1, 3; 168B.07, by adding subdivisions; 168B.08, 
1.11 	subdivision 1; 168B.087, subdivision 1; 169.01, subdivisions 55, 76, by adding 
1.12 	subdivisions; 169.18, subdivisions 1, 5, by adding a subdivision; 169.224; 
1.13 	169.67, subdivision 3; 169.781, subdivisions 1, 2, 5; 169.79; 169.801; 169.82, 
1.14 	subdivision 3; 169.826, subdivision 1a; 169.85, subdivision 1; 169.86, by adding 
1.15 	a subdivision; 169A.03, subdivision 23; 171.01, subdivisions 35, 46; 171.02, by 
1.16 	adding a subdivision; 171.03; 171.055, subdivisions 1, 2; 171.0701; 171.13, by 
1.17 	adding a subdivision; 171.165, subdivision 2; 171.321, subdivision 1; 174.02, 
1.18 	subdivision 2; 174.03, subdivision 1; 174.24, by adding a subdivision; 174.64, 
1.19 	subdivisions 2, 4; 174.66; 221.011, subdivisions 8, 23, by adding subdivisions; 
1.20 	221.025; 221.026; 221.031, subdivision 1; 221.0314, subdivision 9a; 221.036, 
1.21 	subdivisions 1, 3; 221.131; 221.132; 221.141, subdivision 4; 221.185; 221.221, 
1.22 	subdivision 3; 221.291, subdivision 4; 299D.03, subdivision 1; 299D.06; 
1.23 	473.1465, by adding a subdivision; 473.388, subdivision 2; Minnesota Statutes 
1.24 	2007 Supplement, sections 168.017, subdivision 3; 169.443, subdivision 9; 
1.25 	171.02, subdivision 2; Laws 2002, chapter 393, section 85; Laws 2008, chapter 
1.26 	152, article 2, sections 1; 3, subdivision 2; article 3, sections 1; 6; 8; article 6, 
1.27 	section 7; proposing coding for new law in Minnesota Statutes, chapters 123B; 
1.28 	169; 171; 174; 219; 221; repealing Minnesota Statutes 2006, sections 168B.087, 
1.29 	subdivision 2; 169.145; 174.65; 221.011, subdivisions 24, 25, 28, 29, 38, 39, 41, 
1.30 	44, 45; 221.0252, subdivision 7; 221.072; 221.111; 221.121; 221.122; 221.123; 
1.31 	221.131, subdivisions 2a, 3; 221.141, subdivision 6; 221.151; 221.152; 221.153, 
1.32 	subdivisions 1, 2; 221.161; 221.171; 221.172, subdivisions 3, 4, 5, 6, 7, 8; 
1.33 	221.296, subdivisions 3, 4, 5, 6, 7, 8.
1.34 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.1 	ARTICLE 1
2.2 	TRANSPORTATION POLICY

2.3 	Section 1. Minnesota Statutes 2006, section 86B.825, subdivision 5, is amended to read:
2.4 		Subd. 5.No legal title without certificate. A person acquiring a watercraft, 
2.5 	required to have a certificate of title under this section, through a sale or gift does not 
2.6 	acquire a right, title, claim, or interest in the watercraft until the person has been issued 
2.7 	a certificate of title to the watercraft or has received a manufacturer's or importer's 
2.8 	certificate. A waiver or estoppel does not operate in favor of that person against another 
2.9 	person who has obtained possession of the certificate of title or manufacturer's or 
2.10 	importer's certificate for the watercraft for valuable consideration.

2.11 	Sec. 2. Minnesota Statutes 2006, section 123B.88, subdivision 3, is amended to read:
2.12 		Subd. 3.Transportation services contracts; requirements. (a) The board may 
2.13 	contract for the furnishing of authorized transportation under section 123B.52, and may 
2.14 	purchase gasoline and furnish same to a contract carrier for use in the performance of a 
2.15 	contract with the school district for transportation of school children to and from school. 
2.16 	(b) An initiated transportation service contract shall include by contract language, 
2.17 	addendum, or supplementary information terms addressing:
2.18 	(1) a summary of school bus driver training requirements, including the minimum 
2.19 	number of preservice training hours and the minimum number of in-service training hours;
2.20 	(2) a driver recruitment and retention plan, including an explanation of:
2.21 	(i) the actions the contractor has taken or will take to recruit qualified drivers for the 
2.22 	transportation services contract;
2.23 	(ii) the process for screening applicants to be certain that they meet the school bus 
2.24 	driver requirements of federal law, of state law, and of the transportation service contract, 
2.25 	including federal and state-controlled substance and alcohol testing requirements;
2.26 	(iii) the training that drivers receive prior to assignment to transportation service; and
2.27 	(iv) the actions of the employer to retain qualified drivers to meet requirements of 
2.28 	the transportation services contract, including an explanation of wage rates and employee 
2.29 	benefits and policies on compensated absences such as paid vacations, holidays, and 
2.30 	sick leave;
2.31 	(3) the reporting to the local school district of all school bus accidents;
2.32 	(4) the reporting to the local school district of all school bus driver-reported traffic 
2.33 	convictions, based upon the requirement of commercial drivers to report traffic convictions 
3.1 	to their employer under Federal Motor Carrier Safety Administration regulation in Code 
3.2 	of Federal Regulations, title 49, section 383.31;
3.3 	(5) the reporting within one week to the local school district the results of any 
3.4 	Minnesota State Patrol inspection of school buses being regularly utilized for the 
3.5 	transportation under the transportation contract;
3.6 	(6) the school bus driver employee turnover ratio, defined as the total number of 
3.7 	school bus drivers employed during the most recent school year divided by the daily 
3.8 	average number of school bus drivers employed during the same regular school year, 
3.9 	within bus garage location or other reasonable basis. The turnover rate may exclude 
3.10 	those drivers whose employment is terminated or who are otherwise removed for cause 
3.11 	from service; and
3.12 	(7) the date of hire of the employer's current employees identified by their job 
3.13 	classifications, which may include any relevant prior experience. Summer and other 
3.14 	regular school breaks should not be considered interruptions to employment.
3.15 	(c) Notwithstanding section 123B.52, a school district may award a transportation 
3.16 	contract in the interest of student safety and cost-effectiveness.

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

3.18 	Sec. 3. [123B.915] SCHOOL BUS DRIVERS.
3.19 		Subdivision 1.Driver pay. School bus driver employees must be paid for the 
3.20 	actual time worked. If a route pay system or hourly estimation is used, school bus driver 
3.21 	employees must be scheduled and paid for actual time for required inspection of buses. 
3.22 		Subd. 2.Right to refuse. School bus drivers who document needed bus repairs 
3.23 	shall have the right to refuse to operate the bus immediately for a safety-related repair, 
3.24 	which meets the out-of-service definition of Minnesota Rules, part 7470.0600. In this 
3.25 	situation, the driver shall be provided an alternate bus, if available, and time to inspect it. 
3.26 	The driver shall not be penalized in any way for fees, fines, or consequences incurred by 
3.27 	the employer for delays or failure to provide the transportation service in a timely manner 
3.28 	in this situation. Nothing in this section may diminish the rights, pay, or benefits of drivers 
3.29 	covered by a collective bargaining agreement with an exclusive representative.

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

3.31 	Sec. 4. Minnesota Statutes 2006, section 168.011, subdivision 7, is amended to read:
3.32 		Subd. 7.Passenger automobile. (a) "Passenger automobile" means any motor 
3.33 	vehicle designed and used for carrying not more than 15 individuals, including the driver.
4.1 	(b) "Passenger automobile" does not include motorcycles, motor scooters, buses,  
4.2 	school buses, or commuter vans as defined in section 168.126.
4.3 	(c) "Passenger automobile" includes, but is not limited to:
4.4 	(1) pickup trucks and vans, including those vans designed to carry passengers, with 
4.5 	a manufacturer's nominal rated carrying capacity of one ton; and
4.6 	(2) neighborhood electric vehicles, as defined in section 169.01, subdivision 91; and
4.7 	(3) medium-speed electric vehicles, as defined in section 169.01, subdivision 94.

4.8 	Sec. 5. Minnesota Statutes 2006, section 168.012, subdivision 1, is amended to read:
4.9 		Subdivision 1.Vehicles exempt from tax, fees, or plate display. (a) The following 
4.10 	vehicles are exempt from the provisions of this chapter requiring payment of tax and 
4.11 	registration fees, except as provided in subdivision 1c:
4.12 	(1) vehicles owned and used solely in the transaction of official business by the 
4.13 	federal government, the state, or any political subdivision;
4.14 	(2) vehicles owned and used exclusively by educational institutions and used solely 
4.15 	in the transportation of pupils to and from those institutions;
4.16 	(3) vehicles used solely in driver education programs at nonpublic high schools;
4.17 	(4) vehicles owned by nonprofit charities and used exclusively to transport disabled 
4.18 	persons for charitable, religious, or educational purposes;
4.19 	(5) ambulances owned by ambulance services licensed under section 144E.10, the 
4.20 	general appearance of which is unmistakable; and
4.21 	(6) vehicles owned by a commercial driving school licensed under section 171.34, 
4.22 	or an employee of a commercial driving school licensed under section 171.34, and the 
4.23 	vehicle is used exclusively for driver education and training.
4.24 	(b) Vehicles owned by the federal government, municipal fire apparatuses including 
4.25 	fire-suppression support vehicles, police patrols, and ambulances, the general appearance 
4.26 	of which is unmistakable, are not required to register or display number plates.
4.27 	(c) Unmarked vehicles used in general police work, liquor investigations, or arson 
4.28 	investigations, and passenger automobiles, pickup trucks, and buses owned or operated by 
4.29 	the Department of Corrections, must be registered and must display appropriate license 
4.30 	number plates, furnished by the registrar at cost. Original and renewal applications for 
4.31 	these license plates authorized for use in general police work and for use by the Department 
4.32 	of Corrections must be accompanied by a certification signed by the appropriate chief of 
4.33 	police if issued to a police vehicle, the appropriate sheriff if issued to a sheriff's vehicle, 
4.34 	the commissioner of corrections if issued to a Department of Corrections vehicle, or the 
4.35 	appropriate officer in charge if issued to a vehicle of any other law enforcement agency. 
5.1 	The certification must be on a form prescribed by the commissioner and state that the 
5.2 	vehicle will be used exclusively for a purpose authorized by this section.
5.3 	(d) Unmarked vehicles used by the Departments of Revenue and Labor and Industry, 
5.4 	fraud unit, in conducting seizures or criminal investigations must be registered and must 
5.5 	display passenger vehicle classification license number plates, furnished at cost by the 
5.6 	registrar. Original and renewal applications for these passenger vehicle license plates 
5.7 	must be accompanied by a certification signed by the commissioner of revenue or the 
5.8 	commissioner of labor and industry. The certification must be on a form prescribed by 
5.9 	the commissioner and state that the vehicles will be used exclusively for the purposes 
5.10 	authorized by this section.
5.11 	(e) Unmarked vehicles used by the Division of Disease Prevention and Control of the 
5.12 	Department of Health must be registered and must display passenger vehicle classification 
5.13 	license number plates. These plates must be furnished at cost by the registrar. Original 
5.14 	and renewal applications for these passenger vehicle license plates must be accompanied 
5.15 	by a certification signed by the commissioner of health. The certification must be on a 
5.16 	form prescribed by the commissioner and state that the vehicles will be used exclusively 
5.17 	for the official duties of the Division of Disease Prevention and Control.
5.18 	(f) Unmarked vehicles used by staff of the Gambling Control Board in gambling 
5.19 	investigations and reviews must be registered and must display passenger vehicle 
5.20 	classification license number plates. These plates must be furnished at cost by the 
5.21 	registrar. Original and renewal applications for these passenger vehicle license plates must 
5.22 	be accompanied by a certification signed by the board chair. The certification must be on a 
5.23 	form prescribed by the commissioner and state that the vehicles will be used exclusively 
5.24 	for the official duties of the Gambling Control Board.
5.25 	(g) Each state hospital and institution for persons who are mentally ill and 
5.26 	developmentally disabled may have one vehicle without the required identification on 
5.27 	the sides of the vehicle. The vehicle must be registered and must display passenger 
5.28 	vehicle classification license number plates. These plates must be furnished at cost by the 
5.29 	registrar. Original and renewal applications for these passenger vehicle license plates must 
5.30 	be accompanied by a certification signed by the hospital administrator. The certification 
5.31 	must be on a form prescribed by the commissioner and state that the vehicles will be used 
5.32 	exclusively for the official duties of the state hospital or institution.
5.33 	(h) Each county social service agency may have vehicles used for child and 
5.34 	vulnerable adult protective services without the required identification on the sides of the 
5.35 	vehicle. The vehicles must be registered and must display passenger vehicle classification 
5.36 	license number plates. These plates must be furnished at cost by the registrar. Original 
6.1 	and renewal applications for these passenger vehicle license plates must be accompanied 
6.2 	by a certification signed by the agency administrator. The certification must be on a form 
6.3 	prescribed by the commissioner and state that the vehicles will be used exclusively for the 
6.4 	official duties of the social service agency.
6.5 	(g) (i) All other motor vehicles must be registered and display tax-exempt number 
6.6 	plates, furnished by the registrar at cost, except as provided in subdivision 1c. All vehicles 
6.7 	required to display tax-exempt number plates must have the name of the state department 
6.8 	or political subdivision, nonpublic high school operating a driver education program, or
6.9 	licensed commercial driving school, or other qualifying organization or entity, plainly 
6.10 	displayed on both sides of the vehicle; except that each state hospital and institution for 
6.11 	persons who are mentally ill and developmentally disabled may have one vehicle without 
6.12 	the required identification on the sides of the vehicle, and county social service agencies 
6.13 	may have vehicles used for child and vulnerable adult protective services without the 
6.14 	required identification on the sides of the vehicle. This identification must be in a color 
6.15 	giving contrast with that of the part of the vehicle on which it is placed and must endure 
6.16 	throughout the term of the registration. The identification must not be on a removable 
6.17 	plate or placard and must be kept clean and visible at all times; except that a removable 
6.18 	plate or placard may be utilized on vehicles leased or loaned to a political subdivision or 
6.19 	to a nonpublic high school driver education program.

6.20 	Sec. 6. Minnesota Statutes 2007 Supplement, section 168.017, subdivision 3, is 
6.21 	amended to read:
6.22 		Subd. 3.Exceptions. (a) The registrar shall register all vehicles subject to 
6.23 	registration under the monthly series system for a period of 12 consecutive calendar 
6.24 	months, unless:
6.25 	(1) the application is an original rather than renewal application; or
6.26 	(2) the application is for quarterly registration under section 168.018; or
6.27 	(2) (3) the applicant is a licensed motor vehicle lessor under section 168.27 and the 
6.28 	vehicle is leased or rented for periods of time of not more than 28 days, in which case 
6.29 	the applicant may apply for initial or renewed registration of a vehicle for a period of 
6.30 	four or more months, with the month of expiration to be designated by the applicant at 
6.31 	the time of registration. 
6.32 	However, (b) To qualify for this the exemption under paragraph (a), clause (3), the 
6.33 	applicant must (1) present the application to the registrar at St. Paul, or a designated 
6.34 	deputy registrar office, and (2) stamp in red, on the certificate of title, the phrase "The 
7.1 	expiration month of this vehicle is ....." with the blank filled in with the month of expiration 
7.2 	as if the vehicle is being registered for a period of 12 calendar months. 
7.3 	(b) (c) In any instance except that of a licensed motor vehicle lessor, the registrar 
7.4 	shall not approve registering the vehicle subject to the application for a period of less 
7.5 	than three months, except when the registrar determines that to do otherwise will help to 
7.6 	equalize the registration and renewal work load of the department.

7.7 	Sec. 7. Minnesota Statutes 2006, section 168.021, subdivision 1, is amended to read:
7.8 		Subdivision 1.Disability plates; application. (a) When a motor vehicle registered 
7.9 	under section 168.017, a motorcycle, a truck having a manufacturer's nominal rated 
7.10 	capacity of one ton and resembling a pickup truck, or a self-propelled recreational vehicle 
7.11 	is owned or primarily operated by a permanently physically disabled person or a custodial 
7.12 	parent or guardian of a permanently physically disabled minor, the owner may apply for 
7.13 	and secure from the commissioner (1) immediately, a temporary permit valid for 30 days 
7.14 	if the applicant is eligible for the disability plates issued under this section and (2) two 
7.15 	disability plates with attached emblems, one plate to be attached to the front, and one 
7.16 	to the rear of the motor vehicle.
7.17 	(b) The commissioner shall not issue more than one set of plates to any owner of a 
7.18 	motor vehicle at the same time unless all motor vehicles have been specifically modified 
7.19 	for and are used exclusively by a permanently physically disabled person the state council 
7.20 	on disability approves the issuance of a second set of plates to a motor vehicle owner.
7.21 	(c) When the owner first applies for the disability plates, the owner must submit a 
7.22 	medical statement in a format approved by the commissioner under section 169.345, or 
7.23 	proof of physical disability provided for in that section.
7.24 	(d) No medical statement or proof of disability is required when an owner of a motor 
7.25 	vehicle applies for plates for one or more motor vehicles that are specially modified for 
7.26 	and used exclusively by permanently physically disabled persons.
7.27 	(e) The owner of a motor vehicle may apply for and secure (i) immediately, a permit 
7.28 	valid for 30 days, if the applicant is eligible to receive the disability plates issued under 
7.29 	this section, and (ii) a set of disability plates for a motor vehicle if:
7.30 	(1) the owner employs a permanently physically disabled person who would qualify 
7.31 	for disability plates under this section; and
7.32 	(2) the owner furnishes the motor vehicle to the physically disabled person for the 
7.33 	exclusive use of that person in the course of employment.

7.34 	Sec. 8. Minnesota Statutes 2006, section 168.021, subdivision 2, is amended to read:
8.1 		Subd. 2.Plate design; furnished by commissioner. The commissioner shall design 
8.2 	and furnish two disability plates with attached emblems to each an eligible owner. The 
8.3 	emblem must bear the internationally accepted wheelchair symbol, as designated in 
8.4 	section 16B.61, subdivision 5, approximately three inches square. The emblem must 
8.5 	be large enough to be visible plainly from a distance of 50 feet. An applicant eligible 
8.6 	for disability plates shall pay the motor vehicle registration fee authorized by sections 
8.7 	168.013 and 168.09.

8.8 	Sec. 9. Minnesota Statutes 2006, section 168.09, subdivision 7, is amended to read:
8.9 		Subd. 7.Display of temporary permit; special plates. (a) A vehicle that displays a 
8.10 	special Minnesota plate issued under section 168.021; 168.12, subdivision 2, 2a, 2b, 2c, or 
8.11 	2d; 168.123; 168.124; 168.125; 168.126; 168.128; or 168.129,chapter 168 may display a 
8.12 	temporary permit in conjunction with expired registration if:
8.13 	(1) the current registration tax and all other fees and taxes have been paid in full; and
8.14 	(2) the plate requires replacement under section 168.12, subdivision 1, paragraph 
8.15 	(d), clause (3) has been applied for.
8.16 	(b) A vehicle that is registered under section 168.10 may display a temporary permit 
8.17 	in conjunction with expired registration, with or without a registration plate, if:
8.18 	(1) the plates have been applied for and;
8.19 	(2) the registration tax has and other fees and taxes have been paid in full, as 
8.20 	provided for in section 168.10; and
8.21 	(2)(3) either the vehicle is used solely as a collector vehicle while displaying the 
8.22 	temporary permit and not used for general transportation purposes or the vehicle was 
8.23 	issued a 21-day permit under section 168.092, subdivision 1.
8.24 	(c) The permit is valid for a period of 60 days. The permit must be in a format 
8.25 	prescribed by the commissioner and whenever practicable must be posted upon the 
8.26 	driver's side of the rear window on the inside of the vehicle. The permit is valid only 
8.27 	for the vehicle for which it was issued to allow a reasonable time for the new plates to 
8.28 	be manufactured and delivered to the applicant.  The permit may be only issued by the 
8.29 	commissioner or by a deputy registrar under section 168.33.

8.30 	Sec. 10. Minnesota Statutes 2006, section 168.185, is amended to read:
8.31 	168.185 USDOT NUMBERS.
8.32 	(a) Except as provided in paragraph (d), an owner of a truck or truck-tractor having a 
8.33 	gross vehicle weight of more than 10,000 pounds, as defined in section 169.01, subdivision 
8.34 	46, other than a farm truck that is not used in interstate commerce, shall report to the 
9.1 	registrar commissioner at the time of registration its USDOT carrier number. A person 
9.2 	subject to this paragraph who does not have a USDOT number shall apply for the number 
9.3 	at the time of registration by completing a form MCS-150 Motor Carrier Identification 
9.4 	Report, issued by the Federal Motor Carrier Safety Administration, or comparable 
9.5 	document as determined by the registrar commissioner. The registrar commissioner shall 
9.6 	not assign a USDOT carrier number to a vehicle owner who is not subject to this paragraph.
9.7 	(b) Assigned USDOT numbers need not be displayed on the outside of the 
9.8 	vehicle, but must be made available upon request of an authorized agent of the registrar
9.9 	commissioner, peace officer, other employees of the State Patrol authorized in chapter 
9.10 	299D, or employees of the Minnesota Department of Transportation. The vehicle owner 
9.11 	shall notify the registrar commissioner if there is a change to the owner's USDOT number.
9.12 	(c) If an owner fails to report or apply for a USDOT number, the registrar
9.13 	commissioner shall suspend the owner's registration.
9.14 	(d) Until October 1, 2003, paragraphs (a) to (c) do not apply to an agricultural 
9.15 	fertilizer or agricultural chemical retailer while exclusively engaged in delivering fertilizer 
9.16 	or agricultural chemicals to a farmer for on-farm use. This section does not apply to 
9.17 	(1) a farm truck that is not used in interstate commerce, (2) a vehicle that is not used 
9.18 	in intrastate commerce or interstate commerce, or (3) a vehicle that is owned and used 
9.19 	solely in the transaction of official business by the federal government, the state, or any 
9.20 	political subdivision.

9.21 	Sec. 11. Minnesota Statutes 2006, section 168A.03, subdivision 1, is amended to read:
9.22 		Subdivision 1.No certificate issued. The registrar shall not issue a certificate of 
9.23 	title for:
9.24 	(1) a vehicle owned by the United States;
9.25 	(2) a vehicle owned by a nonresident and not required by law to be registered in 
9.26 	this state;
9.27 	(3) a vehicle owned by a nonresident and regularly engaged in the interstate 
9.28 	transportation of persons or property for which a currently effective certificate of title 
9.29 	has been issued in another state;
9.30 	(4) a vehicle moved solely by animal power;
9.31 	(5) an implement of husbandry;
9.32 	(6) special mobile equipment;
9.33 	(7) a self-propelled wheelchair or invalid tricycle;
9.34 	(8) a trailer (i) having a gross weight of 4,000 pounds or less unless a secured party 
9.35 	holds an interest in the trailer or a certificate of title was previously issued by this state or 
10.1 	any other state or (ii) designed primarily for agricultural purposes except a recreational 
10.2 	vehicle or a manufactured home, both as defined in section 168.011, subdivisions 8 and 25; 
10.3 	(9) a snowmobile.; and
10.4 	(10) a spotter truck, as defined in section 169.01, subdivision 7a.

10.5 	EFFECTIVE DATE. This section is effective the day following final enactment 
10.6 	and expires June 30, 2013.

10.7 	Sec. 12. Minnesota Statutes 2006, section 168A.05, subdivision 9, is amended to read:
10.8 		Subd. 9.Neighborhood electric vehicle and medium-speed electric vehicles; 
10.9 	certificate required. Neighborhood electric vehicles and medium-speed electric vehicles, 
10.10 	as defined in section 169.01, subdivisionsubdivisions 91 and 94, must be titled as 
10.11 	specified in section 168A.02. The department shall not issue a title for a neighborhood 
10.12 	electric vehicle or a medium-speed electric vehicle (1) that lacks a vehicle identification 
10.13 	number, and (2) for which a manufacturer's certificate of origin clearly labeling the 
10.14 	vehicle as a neighborhood electric vehicle or similar designation has not been issued. The 
10.15 	department shall not issue a vehicle identification number to a homemade neighborhood 
10.16 	electric or low-speed vehicle or retrofitted golf cart, and such vehicles do not qualify as 
10.17 	neighborhood electric vehicles.

10.18 	Sec. 13. Minnesota Statutes 2006, section 168B.051, subdivision 2, is amended to read:
10.19 		Subd. 2.Sale after 45 days or title transfer. An(a) If an unauthorized vehicle is 
10.20 	impounded, other than by the city of Minneapolis or the city of St. Paul, the impounded 
10.21 	vehicle is eligible for disposal or sale under section 168B.08, the earlier of:
10.22 	(1) 45 days after notice to the owner, if the vehicle is determined to be an 
10.23 	unauthorized vehicle that was not impounded by the city of Minneapolis or the city of 
10.24 	St. Paul; or
10.25 	(2) the date of a voluntary written title transfer by the registered owner to the 
10.26 	impound lot operator.
10.27 	(b) A voluntary written title transfer constitutes a waiver by the registered owner of 
10.28 	any right, title, and interest in the vehicle.

10.29 	Sec. 14. Minnesota Statutes 2006, section 168B.06, subdivision 1, is amended to read:
10.30 		Subdivision 1.Contents;Written notice given within five days of impound. (a) 
10.31 	When an impounded vehicle is taken into custody, the unit of government or impound lot 
10.32 	operator taking it into custody shall give written notice of the taking within five days to 
10.33 	the registered vehicle owner and any lienholders. 
11.1 	(b) The notice shall must:
11.2 	(1) set forth the date and place of the taking,;
11.3 	(2) provide the year, make, model, and serial number of the impounded motor 
11.4 	vehicle, if such information can be reasonably obtained, and the place where the vehicle 
11.5 	is being held,;
11.6 	(2) (3) inform the owner and any lienholders of their right to reclaim the vehicle 
11.7 	under section 168B.07, and;
11.8 	(3) (4) state that failure of the owner or lienholders to:
11.9 	(i)  exercise their right to reclaim the vehicle and contents within the appropriate time 
11.10 	allowed under section 168B.051, subdivision 1, 1a, or 2, shall be deemedand under the 
11.11 	conditions set forth in section 168B.07, subdivision 1, constitutes a waiver by them of all 
11.12 	right, title, and interest in the vehicle and contents and a consent to the transfer of title to 
11.13 	and disposal or sale of the vehicle and contents pursuant to section 168B.08; or
11.14 	(ii) exercise their right to reclaim the contents of the vehicle within the appropriate 
11.15 	time allowed and under the conditions set forth in section 168B.07, subdivision 3, 
11.16 	constitutes a waiver by them of all right, title, and interest in the contents and consent to 
11.17 	sell or dispose of the contents under section 168B.08; and
11.18 	(5) state that a vehicle owner who provides to the impound lot operator 
11.19 	documentation from a government or nonprofit agency or legal aid office that the owner 
11.20 	is homeless, receives relief based on need, is eligible for legal aid services, or has a 
11.21 	household income at or below 50 percent of state median income has the unencumbered 
11.22 	right to retrieve any and all contents without charge. 

11.23 	Sec. 15. Minnesota Statutes 2006, section 168B.06, subdivision 3, is amended to read:
11.24 		Subd. 3.Unauthorized vehicle; second notice. If an unauthorized vehicle remains 
11.25 	unclaimed after 30 days from the date the notice was sent under subdivision 2, a second 
11.26 	notice shallmust be sent by certified mail, return receipt requested, to the registered owner, 
11.27 	if any, of the unauthorized vehicle and to all readily identifiable lienholders of record.

11.28 	Sec. 16. Minnesota Statutes 2006, section 168B.07, is amended by adding a 
11.29 	subdivision to read:
11.30 		Subd. 3.Retrieval of contents. (a) For purposes of this subdivision:
11.31 	(1) "contents" does not include any permanently affixed mechanical or 
11.32 	nonmechanical automobile parts; automobile body parts; or automobile accessories, 
11.33 	including audio or video players; and
12.1 	(2) "relief based on need" includes, but is not limited to, receipt of MFIP and 
12.2 	Diversionary Work Program, medical assistance, general assistance, general assistance 
12.3 	medical care, emergency general assistance, Minnesota supplemental aid (MSA), 
12.4 	MSA-emergency assistance, MinnesotaCare, Supplemental Security Income, energy 
12.5 	assistance, emergency assistance, Food Stamps, earned income tax credit, or Minnesota 
12.6 	working family tax credit.
12.7 	(b) A unit of government or impound lot operator shall establish reasonable 
12.8 	procedures for retrieval of vehicle contents, and may establish reasonable procedures to 
12.9 	protect the safety and security of the impound lot and its personnel.
12.10 	(c) At any time before the expiration of the waiting periods provided in section 
12.11 	168B.051, a registered owner who provides documentation from a government or 
12.12 	nonprofit agency or legal aid office that the registered owner is homeless, receives relief 
12.13 	based on need, is eligible for legal aid services, or has a household income at or below 50 
12.14 	percent of state median income has the unencumbered right to retrieve any and all contents 
12.15 	without charge and regardless of whether the registered owner pays incurred charges or 
12.16 	fees, transfers title, or reclaims the vehicle.
12.17 	(d) At any time before the expiration of the waiting periods provided in section 
12.18 	168B.051, a registered owner other than a registered owner described in paragraph (c) 
12.19 	has the unencumbered right to retrieve the following contents: medicine; medical-related 
12.20 	items and equipment; clothing; eyeglasses; educational materials; and legal documents, 
12.21 	including, but not limited to, a driver's license, identification, passports, insurance 
12.22 	documents, any other documents related to a pending or concluded judicial or 
12.23 	administrative proceeding, tax returns, and documents indicating receipt of or eligibility 
12.24 	for public benefit programs. This provision does not prohibit the return of other contents 
12.25 	at the discretion of the impound lot operator.
12.26 	(e) An impound lot operator is not required to return any contents to a person who is 
12.27 	not the registered owner of the impounded vehicle, other than legal documents. Legal 
12.28 	documents include, but are not limited to, driver's license, identification, passports, 
12.29 	insurance documents, any other documents related to a pending or concluded judicial or 
12.30 	administrative proceeding, and tax returns. An impound lot operator is not required to 
12.31 	return any contents to a person who is not the registered owner after the expiration of 
12.32 	the waiting periods provided in section 168B.051, or if the registered owner voluntarily 
12.33 	transfers title to the impound lot operator under section 168B.051, subdivision 2.

12.34 	Sec. 17. Minnesota Statutes 2006, section 168B.07, is amended by adding a 
12.35 	subdivision to read:
13.1 		Subd. 4.Waiver of rights. The failure of the registered owner or lienholders to 
13.2 	exercise the right to reclaim the vehicle before the expiration of the waiting periods 
13.3 	provided under section 168B.051 constitutes a waiver of all right, title, and interest in 
13.4 	the vehicle and a consent to the transfer of title to, and disposal or sale of, the vehicle 
13.5 	under section 168B.08. The failure of the registered owner to exercise the right provided 
13.6 	under subdivision 3 constitutes a waiver of all right, title, and interest in the contents and 
13.7 	a consent to the transfer of title to, and disposal or sale of, the contents under section 
13.8 	168B.08.

13.9 	Sec. 18. Minnesota Statutes 2006, section 168B.08, subdivision 1, is amended to read:
13.10 		Subdivision 1.Auction or sale. (a) If an abandoned or unauthorized vehicle and 
13.11 	contents taken into custody by a unit of government or any impound lot is not reclaimed 
13.12 	under section 168B.07, subdivision 1, it may be disposed of or sold at auction or sale when 
13.13 	eligible pursuant to sections 168B.06 and 168B.07. If the contents of an abandoned or 
13.14 	unauthorized vehicle taken into custody by a unit of government or any impound lot is not 
13.15 	reclaimed under section 168B.07, subdivision 3, it may be disposed of or sold at auction 
13.16 	or sale when eligible pursuant to sections 168B.06 and 168B.07.
13.17 	(b) The purchaser shall be given a receipt in a form prescribed by the registrar of 
13.18 	motor vehicles which shall be sufficient title to dispose of the vehicle. The receipt shall 
13.19 	also entitle the purchaser to register the vehicle and receive a certificate of title, free and 
13.20 	clear of all liens and claims of ownership. Before such a vehicle is issued a new certificate 
13.21 	of title it must receive a motor vehicle safety check.

13.22 	Sec. 19. Minnesota Statutes 2006, section 168B.087, subdivision 1, is amended to read:
13.23 		Subdivision 1.Deficiency claim. (a) The nonpublic impound lot operator has a 
13.24 	deficiency claim against the registered owner of the vehicle for the reasonable costs of 
13.25 	services provided in the towing, storage, and inspection of the vehicle minus the proceeds 
13.26 	of the sale or auction, except as provided in paragraph (c).
13.27 	(b) The claim for storage costs may not exceed the costs of:
13.28 	(1) 25 days storage, for a vehicle described in section 168B.051, subdivision 1; and 
13.29 	(2) 15 days storage, for a vehicle described in section 168B.051, subdivision 1a; and
13.30 	(3) 55 days storage, for a vehicle described in section 168B.051, subdivision 2. 
13.31 	(c) A public impound lot operator is prohibited from:
13.32 	(1) filing a deficiency claim against a registered owner whom the operator knows:
13.33 	(i) is homeless;
13.34 	(ii) receives relief based on need, as defined in section 168B.07; or
14.1 	(iii) has a household income at or below 50 percent of state median income; or
14.2 	(2) recovering a deficiency from a registered owner who demonstrates that the 
14.3 	owner, at the time the deficiency claim was filed:
14.4 	(i) was homeless;
14.5 	(ii) received relief based on need, as defined in section 168B.07; or
14.6 	(iii) had a household income at or below 50 percent of state median income.

14.7 	Sec. 20. Minnesota Statutes 2006, section 169.01, is amended by adding a subdivision 
14.8 	to read:
14.9 		Subd. 7a.Spotter truck. "Spotter truck" means a truck-tractor with a manufacturer's 
14.10 	certificate of origin "not for on road use" specification, used exclusively for staging or 
14.11 	shuttling trailers in the course of a truck freight operation or freight shipping operation.

14.12 	EFFECTIVE DATE. This section is effective the day following final enactment 
14.13 	and expires June 30, 2013.

14.14 	Sec. 21. Minnesota Statutes 2006, section 169.01, subdivision 55, is amended to read:
14.15 		Subd. 55.Implement of husbandry. "Implement of husbandry" has the meaning 
14.16 	given in section 168A.01, subdivision 8 means a self-propelled or towed vehicle designed 
14.17 	or adapted to be used exclusively for timber-harvesting, agricultural, horticultural, or 
14.18 	livestock-raising operations.

14.19 	Sec. 22. Minnesota Statutes 2006, section 169.01, subdivision 76, is amended to read:
14.20 		Subd. 76.Hazardous materials. "Hazardous materials" means those materials 
14.21 	found to be hazardous for the purposes of the federal Hazardous Materials Transportation 
14.22 	Act and that require the motor vehicle any material that has been designated as hazardous 
14.23 	under United States Code, title 49, section 5103, and is required to be placarded under 
14.24 	Code of Federal Regulations, title 49, parts 100-185 part 172, subpart F, or any quantity of 
14.25 	a material listed as a select agent or toxin in Code of Federal Regulations, title 42, part 73.

14.26 	Sec. 23. Minnesota Statutes 2006, section 169.01, is amended by adding a subdivision 
14.27 	to read:
14.28 		Subd. 93.Wireless communications device. "Wireless communications device" 
14.29 	means (1) a cellular phone, or (2) a portable electronic device that is capable of receiving 
14.30 	and transmitting data, including but not limited to text messages and e-mail, without an 
14.31 	access line for service. A wireless communications device does not include a device that 
15.1 	is permanently affixed to the vehicle, including a global positioning system or navigation 
15.2 	system.

15.3 	Sec. 24. Minnesota Statutes 2006, section 169.01, is amended by adding a subdivision 
15.4 	to read:
15.5 		Subd. 94.Medium-speed electric vehicle. "Medium-speed electric vehicle" 
15.6 	means an electrically powered four-wheeled motor vehicle, equipped with a roll cage or 
15.7 	crushproof body design, that can attain a maximum speed of 35 miles per hour on a paved 
15.8 	level surface, is fully enclosed and has at least one door for entry, has a wheelbase of 40 
15.9 	inches or greater and a wheel diameter of ten inches or greater, and except with respect to 
15.10 	maximum speed otherwise meets or exceeds regulations in Code of Federal Regulations, 
15.11 	title 49, section 571.500, and successor requirements.

15.12 	Sec. 25. Minnesota Statutes 2006, section 169.18, subdivision 1, is amended to read:
15.13 		Subdivision 1.Keep to the right. Upon all roadways of sufficient width a vehicle 
15.14 	shall be driven upon the right half of the roadway, except as follows:
15.15 	(1) when overtaking and passing another vehicle proceeding in the same direction 
15.16 	under the rules governing such movement;
15.17 	(2) when the right half of a roadway is closed to traffic while under construction 
15.18 	or repair;
15.19 	(3) upon a roadway divided into three marked lanes for traffic under the rules 
15.20 	applicable thereon;
15.21 	(4) upon a roadway designated and signposted for one-way traffic as a one-way 
15.22 	roadway; or
15.23 	(5) as necessary to comply with subdivision 11 when approaching an authorized 
15.24 	emergency vehicle parked or stopped on the roadway.; or
15.25 	(6) as necessary to comply with subdivision 12 when approaching a road 
15.26 	maintenance or construction vehicle parked or stopped on the roadway.

15.27 	Sec. 26. Minnesota Statutes 2006, section 169.18, subdivision 5, is amended to read:
15.28 		Subd. 5.Driving left of roadway center; exception. (a) No vehicle shall be driven 
15.29 	to the left side of the center of the roadway in overtaking and passing another vehicle 
15.30 	proceeding in the same direction unless such left side is clearly visible and is free of 
15.31 	oncoming traffic for a sufficient distance ahead to permit such overtaking and passing to 
15.32 	be completely made without interfering with the safe operation of any vehicle approaching 
15.33 	from the opposite direction or any vehicle overtaken. In every event the overtaking 
16.1 	vehicle must return to the right-hand side of the roadway before coming within 100 feet 
16.2 	of any vehicle approaching from the opposite direction.
16.3 	(b) Except on a one-way roadway or as provided in paragraph (c), no vehicle shall, 
16.4 	in overtaking and passing another vehicle or at any other time, be driven to the left half of 
16.5 	the roadway under the following conditions:
16.6 	(1) when approaching the crest of a grade or upon a curve in the highway where the 
16.7 	driver's view along the highway is obstructed within a distance of 700 feet;
16.8 	(2) when approaching within 100 feet of any underpass or tunnel, railroad grade 
16.9 	crossing, intersection within a city, or intersection outside of a city if the presence of the 
16.10 	intersection is marked by warning signs; or
16.11 	(3) where official signs are in place prohibiting passing, or a distinctive centerline 
16.12 	is marked, which distinctive line also so prohibits passing, as declared in the Manual on 
16.13 	Uniform Traffic Control Devices adopted by the commissioner.
16.14 	(c) Paragraph (b) does not apply to a self-propelled or towed implement of 
16.15 	husbandry that (1) is escorted at the front by a registered motor vehicle that is displaying 
16.16 	vehicular hazard warning lights visible to the front and rear in normal sunlight, and (2) 
16.17 	does not extend into the left half of the roadway to any greater extent than made necessary 
16.18 	by the total width of the right half of the roadway together with any adjacent shoulder 
16.19 	that is suitable for travel.
16.20 	(d) Paragraph (b) does not apply to a self-propelled or towed implement of 
16.21 	husbandry that is operated to the left half of the roadway if such operation is not to a 
16.22 	greater extent than is necessary to avoid collision with a parked vehicle, sign, or other 
16.23 	stationary object located on the highway right-of-way.

16.24 	Sec. 27. Minnesota Statutes 2006, section 169.18, is amended by adding a subdivision 
16.25 	to read:
16.26 		Subd. 12.Passing certain parked vehicles; citation; probable cause. (a) When 
16.27 	approaching and before passing a freeway service patrol, road maintenance, or construction 
16.28 	vehicle with its warning lights activated that is parked or otherwise stopped on or next to 
16.29 	a street or highway having two lanes in the same direction, the driver of a vehicle shall 
16.30 	safely move the vehicle to the lane farthest away from the vehicle, if it is possible to do so.
16.31 	(b) When approaching and before passing a freeway service patrol, road 
16.32 	maintenance, or construction vehicle with its warning lights activated that is parked or 
16.33 	otherwise stopped on or next to a street or highway having more than two lanes in the 
16.34 	same direction, the driver of a vehicle shall safely move the vehicle so as to leave a full 
17.1 	lane vacant between the driver and any lane in which the vehicle is completely or partially 
17.2 	parked or otherwise stopped, if it is possible to do so.
17.3 	(c) A peace officer may issue a citation to the driver of a motor vehicle if the peace 
17.4 	officer has probable cause to believe that the driver has operated the vehicle in violation of 
17.5 	this subdivision within the four-hour period following the termination of the incident.

17.6 	Sec. 28. Minnesota Statutes 2006, section 169.224, is amended to read:
17.7 	169.224 NEIGHBORHOOD AND MEDIUM-SPEED ELECTRIC VEHICLES.
17.8 		Subdivision 1.Definition. For purposes of this section, "road authority" means the 
17.9 	commissioner, as to trunk highways; the county board, as to county state-aid highways 
17.10 	and county highways; the town board, as to town roads; and the governing body of 
17.11 	a city, as to city streets. 
17.12 		Subd. 2.Required equipment. Notwithstanding any other law, a neighborhood 
17.13 	electric vehicle or a medium-speed electric vehicle may be operated on public streets and 
17.14 	highways if it meets all equipment and vehicle safety requirements in Code of Federal 
17.15 	Regulations, title 49, section 571.500, and successor requirements. 
17.16 		Subd. 3.Operation. A neighborhood electric vehicle or a medium-speed electric 
17.17 	vehicle may not be operated on a street or highway with a speed limit greater than 35 miles 
17.18 	per hour, except to make a direct crossing of that street or highway. 
17.19 		Subd. 4.Restrictions and prohibitions. (a) A road authority, including the 
17.20 	commissioner of transportation by order, may prohibit or further restrict the operation 
17.21 	of neighborhood electric vehicles and medium-speed electric vehicles on any street or 
17.22 	highway under the road authority's jurisdiction.
17.23 	(b) Neither a neighborhood electric vehicle nor a medium-speed electric vehicle may 
17.24 	not be used to take any examination to demonstrate ability to exercise control in the 
17.25 	operation of a motor vehicle as required under section 171.13.

17.26 	Sec. 29. [169.228] SPOTTER TRUCKS.
17.27 	Notwithstanding any other law, a spotter truck may be operated on public streets 
17.28 	and highways if:
17.29 	(1) the operator has a valid class A, B, or C driver's license;
17.30 	(2) the vehicle complies with the size, weight, and load restrictions under this 
17.31 	chapter;
17.32 	(3) the vehicle meets all inspection requirements under section 169.781; and
17.33 	(4) the vehicle is operated (i) within a zone of two air miles from the truck freight 
17.34 	operation or freight shipping operation where the vehicle is housed, or (ii) directly to and 
18.1 	from a repair shop, service station, or fueling station for the purpose of repair, servicing, 
18.2 	or refueling.

18.3 	EFFECTIVE DATE. This section is effective the day following final enactment 
18.4 	and expires June 30, 2013.

18.5 	Sec. 30. Minnesota Statutes 2007 Supplement, section 169.443, subdivision 9, is 
18.6 	amended to read:
18.7 		Subd. 9.Personal cellular phone call prohibition. (a) As used in this subdivision, 
18.8 	"school bus" has the meaning given in section 169.01, subdivision 6. In addition, the term 
18.9 	includes type III school buses as described in section 169.01, subdivision 6, clause (5), 
18.10 	when driven by employees or agents of school districts for transportation.
18.11 	(b) A school bus driver may not operate a school bus while communicating over, or 
18.12 	otherwise operating, a cellular phone for personal reasons, whether hand-held or hands 
18.13 	free, when the vehicle is in motion.

18.14 	EFFECTIVE DATE. This section is effective August 1, 2008, and applies to crimes 
18.15 	committed on or after that date.

18.16 	Sec. 31. [169.475] USE OF WIRELESS COMMUNICATIONS DEVICE.
18.17 		Subdivision 1.Definition. For purposes of this section, "electronic message" 
18.18 	means a self-contained piece of digital communication that is designed or intended to 
18.19 	be transmitted between physical devices. An electronic message includes, but is not 
18.20 	limited to, e-mail, a text message, an instant message, a command or request to access 
18.21 	a World Wide Web page, or other data that uses a commonly recognized electronic 
18.22 	communications protocol. An electronic message does not include voice or other data 
18.23 	transmitted as a result of making a phone call, or data transmitted automatically by a 
18.24 	wireless communications device without direct initiation by a person.
18.25 		Subd. 2.Prohibition on use. No person may operate a motor vehicle while using a 
18.26 	wireless communications device to compose, read, or send an electronic message, when 
18.27 	the vehicle is in motion or a part of traffic.
18.28 		Subd. 3.Exceptions. This section does not apply if a wireless communications 
18.29 	device is used:
18.30 	(1) solely in a voice-activated or other hands-free mode;
18.31 	(2) for making a cellular phone call;
18.32 	(3) for obtaining emergency assistance to (i) report a traffic accident, medical 
18.33 	emergency, or serious traffic hazard, or (ii) prevent a crime about to be committed; 
19.1 	(4) in the reasonable belief that a person's life or safety is in immediate danger; or
19.2 	(5) in an authorized emergency vehicle while in the performance of official duties.

19.3 	Sec. 32. Minnesota Statutes 2006, section 169.67, subdivision 3, is amended to read:
19.4 		Subd. 3.Trailer, semitrailer. (a) No trailer or semitrailer with a gross vehicle
19.5 	weight of 3,000 or more pounds, or a gross weight that exceeds the empty weight of the 
19.6 	towing vehicle, may be drawn on a highway unless it is equipped with brakes that are 
19.7 	adequate to control the movement of and to stop and hold the trailer or semitrailer. A 
19.8 	surge brake on a trailer or semitrailer meets the requirement of this paragraph for brakes 
19.9 	adequate to stop and hold the trailer or semitrailer.
19.10 	(b) No trailer or semitrailer that is required to have brakes and that has with a gross 
19.11 	vehicle weight of more than 6,000 3,000 pounds may be drawn on a highway unless it is 
19.12 	equipped with brakes that are so constructed that they are adequate to stop and hold the 
19.13 	trailer or semitrailer whenever it becomes detached from the towing vehicle.
19.14 	(c) Except as provided in paragraph (d), paragraph (a) does not apply to:
19.15 	(1) a trailer used by a farmer while transporting farm products produced on the user's 
19.16 	farm, or supplies back to the farm of the trailer's user;
19.17 	(2) a towed custom service vehicle drawn by a motor vehicle that is equipped with 
19.18 	brakes that meet the standards of subdivision 5, provided that such a towed custom service 
19.19 	vehicle that exceeds 30,000 pounds gross weight may not be drawn at a speed of more 
19.20 	than 45 miles per hour;
19.21 	(3) a trailer or semitrailer operated or used by retail dealers of implements of 
19.22 	husbandry while engaged exclusively in the delivery of implements of husbandry;
19.23 	(4) (2) a motor vehicle drawn by another motor vehicle that is equipped with brakes 
19.24 	that meet the standards of subdivision 5; and
19.25 	(5) a tank trailer of not more than 12,000 pounds gross weight owned by a distributor 
19.26 	of liquid fertilizer while engaged exclusively in transporting liquid fertilizer, or gaseous 
19.27 	fertilizer under pressure;
19.28 	(6) a trailer of not more than 12,000 pounds gross weight owned by a distributor of 
19.29 	dry fertilizer while engaged exclusively in the transportation of dry fertilizer; and
19.30 	(7) (3) a disabled vehicle while being towed to a place of repair.
19.31 	(d) Vehicles described in paragraph (c), clauses (1), (3), and (4) clause (2), may be 
19.32 	operated without complying with paragraph (a) only if the trailer or semitrailer does 
19.33 	not exceed the following gross weights:
19.34 	(1) 3,000 pounds while being drawn by a vehicle registered as a passenger 
19.35 	automobile, other than a pickup truck as defined in section  168.011, subdivision 29; 
20.1 	(2) 12,000 pounds while being drawn by any other motor vehicle except a 
20.2 	self-propelled implement of husbandry.

20.3 	Sec. 33. Minnesota Statutes 2006, section 169.781, subdivision 1, is amended to read:
20.4 		Subdivision 1.Definitions. For purposes of sections 169.781 to 169.783: 
20.5 	(a) "Commercial motor vehicle" means:
20.6 	(1) a commercial motor vehicle as defined in section 169.01, subdivision 75, 
20.7 	paragraph (a); and
20.8 	(2) each vehicle in a combination of more than 26,000 pounds.; and
20.9 	(3) a spotter truck.
20.10 	"Commercial motor vehicle" does not include (1) a school bus or Head Start bus 
20.11 	displaying a certificate under section 169.451, (2) a bus operated by the Metropolitan 
20.12 	Council or by a local transit commission created in chapter 458A, or (3) a motor vehicle  
20.13 	that is required to be placarded under Code of Federal Regulations, title 49, parts 100-185. 
20.14 	(b) "Commissioner" means the commissioner of public safety.
20.15 	(c) "Owner" means a person who owns, or has control, under a lease of more than 30 
20.16 	days' duration, of one or more commercial motor vehicles.
20.17 	(d) "Storage semitrailer" means a semitrailer that (1) is used exclusively to store 
20.18 	property at a location not on a street or highway, (2) does not contain any load when 
20.19 	moved on a street or highway, (3) is operated only during daylight hours, and (4) is marked 
20.20 	on each side of the semitrailer "storage only" in letters at least six inches high.
20.21 	(e) "Building mover vehicle" means a vehicle owned or leased by a building mover 
20.22 	as defined in section 221.81, subdivision 1, paragraph (a), and used exclusively for 
20.23 	moving buildings. 

20.24 	EFFECTIVE DATE. This section is effective the day following final enactment 
20.25 	and expires June 30, 2013.

20.26 	Sec. 34. Minnesota Statutes 2006, section 169.781, subdivision 2, is amended to read:
20.27 		Subd. 2.Inspection required. It is unlawful for a person to operate or permit 
20.28 	the operation of:
20.29 	(1) a commercial motor vehicle registered in Minnesota or a spotter truck; or
20.30 	(2) special mobile equipment as defined in section 168.011, subdivision 22, and 
20.31 	which is self-propelled, if it is mounted on a commercial motor vehicle chassis, 
20.32 	unless the vehicle displays a valid safety inspection decal issued by an inspector certified 
20.33 	by the commissioner, or the vehicle carries (1) proof that the vehicle complies with 
21.1 	federal motor vehicle inspection requirements for vehicles in interstate commerce, and 
21.2 	(2) a certificate of compliance with federal requirements issued by the commissioner 
21.3 	under subdivision 9.

21.4 	EFFECTIVE DATE. This section is effective the day following final enactment 
21.5 	and expires on June 30, 2013.

21.6 	Sec. 35. Minnesota Statutes 2006, section 169.781, subdivision 5, is amended to read:
21.7 		Subd. 5.Inspection decal; violation, penalty. (a) A person inspecting a 
21.8 	commercial motor vehicle shall issue an inspection decal for the vehicle if each inspected 
21.9 	component of the vehicle complies with federal motor carrier safety regulations. The decal 
21.10 	must state that in the month specified on the decal the vehicle was inspected and each 
21.11 	inspected component complied with federal motor carrier safety regulations. The decal is 
21.12 	valid for 12 months after the month specified on the decal. The commissioners of public 
21.13 	safety and transportation shall make decals available, at a fee of not more than $2 for each 
21.14 	decal, to persons certified to perform inspections under subdivision 3, paragraph (b).
21.15 	(b) Minnesota inspection decals may be affixed only to:
21.16 	(1) commercial motor vehicles bearing Minnesota-based license plates; or
21.17 	(2) special mobile equipment, within the meaning of subdivision 2, clause (2).
21.18 	(c) Notwithstanding paragraph (a), a person inspecting (1) a vehicle of less 
21.19 	than 57,000 pounds gross vehicle weight and registered as a farm truck, (2) a storage 
21.20 	semitrailer, or (3) a building mover vehicle must issue an inspection decal to the vehicle 
21.21 	unless the vehicle has one or more defects that would result in the vehicle being declared 
21.22 	out of service under the North American Uniform Driver, Vehicle, and Hazardous 
21.23 	Materials Out-of-Service Criteria issued by the Federal Highway Administration and the 
21.24 	Commercial Vehicle Safety Alliance. A decal issued to a vehicle described in clause (1), 
21.25 	(2), or (3) is valid for two years from the date of issuance. A decal issued to such a vehicle 
21.26 	must clearly indicate that it is valid for two years from the date of issuance.
21.27 	(d) Notwithstanding paragraph (a), a commercial motor vehicle that (1) is registered 
21.28 	as a farm truck, (2) is not operated more than 75 miles from the owner's home post office, 
21.29 	and (3) was manufactured before 1979 that has a dual transmission system, is not required 
21.30 	to comply with a requirement in an inspection standard that requires that the service brake 
21.31 	system and parking brake system be separate systems in the motor vehicle.
21.32 	(e) A person who, with the intent to defraud, falsely makes, duplicates, alters, or 
21.33 	forges a decal or other writing or thing purporting to be a Minnesota inspection decal 
21.34 	described in this subdivision is guilty of a felony. A person who, with the intent to defraud, 
22.1 	possesses a decal or other writing or thing falsely purporting to be a Minnesota inspection 
22.2 	decal described in this subdivision is guilty of a gross misdemeanor.

22.3 	Sec. 36. Minnesota Statutes 2006, section 169.79, is amended to read:
22.4 	169.79 VEHICLE REGISTRATION; DISPLAYING LICENSE PLATES.
22.5 		Subdivision 1.Registration required. No person shall operate, drive, or park a 
22.6 	motor vehicle on any highway unless the vehicle is registered in accordance with the laws 
22.7 	of this state and has the number plates or permit confirming that valid registration or 
22.8 	operating authority has been obtained, except as provided in sections 168.10 and 168.12, 
22.9 	subdivision 2f, as assigned to it by the commissioner of public safety, conspicuously 
22.10 	displayed thereon in a manner that the view of any plate or permit is not obstructed. A 
22.11 	plate issued under section 168.27 or a permit issued under chapter 168 may be displayed 
22.12 	on a vehicle in conjunction with expired registration whether or not it displays the license 
22.13 	plate to which the last registration was issued. 
22.14 		Subd. 2.Semitrailer. If the vehicle is a semitrailer, the number plate displayed must 
22.15 	be assigned to the registered owner and correlate to the certificate of title documentation 
22.16 	on file with the department and shall not display a year indicator.
22.17 		Subd. 3.Rear display of single plate. If the vehicle is a motorcycle, motor scooter, 
22.18 	motorized bicycle, motorcycle sidecar, trailer registered at greater than 3,000 pounds 
22.19 	gross vehicle weight (GVW), semitrailer, or vehicle displaying a dealer plate, then one 
22.20 	license plate must be displayed horizontally with the identifying numbers and letters 
22.21 	facing outward from the vehicle and must be mounted in the upright position on the 
22.22 	rear of the vehicle.
22.23 		Subd. 3a.Small trailer. If the vehicle is a trailer with 3,000 pounds or less GVW 
22.24 	with lifetime registration, the numbered plate or sticker must be adhered to the side of the 
22.25 	trailer frame tongue near the hitch.
22.26 		Subd. 4.Collector's vehicle. If the vehicle is (1) a collector's vehicle with a pioneer, 
22.27 	classic car, collector, or street rod license; (2) a vehicle that meets the requirements 
22.28 	of a pioneer, classic, or street rod vehicle except that the vehicle is used for general 
22.29 	transportation purposes; or (3) a vehicle that is of model year 1972 or earlier, not registered 
22.30 	under section 168.10, subdivision 1c, and is used for general transportation purposes, then 
22.31 	one plate must be displayed on the rear of the vehicle, or one plate on the front and one 
22.32 	on the rear, at the discretion of the owner. 
22.33 		Subd. 5.Truck-tractor, road-tractor, or farm truck. If the vehicle is a 
22.34 	truck-tractor, road-tractor, or farm truck, as defined in section 168.011, subdivision 17, but 
23.1 	excluding from that definition semitrailers and trailers, then one plate must be displayed 
23.2 	on the front of the vehicle. 
23.3 		Subd. 6.Other motor vehicles. If the motor vehicle is any kind of motor vehicle 
23.4 	other than those provided for in subdivisions 2 to 4, one plate must be displayed on the 
23.5 	front and one on the rear of the vehicle.
23.6 		Subd. 7.Plate fastened and visible. All plates must be (1) securely fastened so as 
23.7 	to prevent them from swinging, (2) displayed horizontally with the identifying numbers 
23.8 	and letters facing outward from the vehicle, and (3) mounted in the upright position. The 
23.9 	person driving the motor vehicle shall keep the plate legible and unobstructed and free 
23.10 	from grease, dust, or other blurring material so that the lettering is plainly visible at all 
23.11 	times. It is unlawful to cover any assigned letters and numbers or the name of the state 
23.12 	of origin of a license plate with any material whatever, including any clear or colorless 
23.13 	material that affects the plate's visibility or reflectivity.
23.14 		Subd. 8.Plate registration stickers.  As viewed facing the plates:
23.15 	(a) License plates issued to vehicles registered under section 168.017 must display 
23.16 	the month of expiration in the lower left corner as viewed facing the of each plate and the 
23.17 	year of expiration in the lower right corner as viewed facing theof each plate. 
23.18 	(b) License plates issued to vehicles registered under section 168.127 must display 
23.19 	either fleet registration validation stickers in the lower right corner as viewed facing the 
23.20 	plates of each plate or distinctive license plates, issued by the registrar, with "FLEET 
23.21 	REG" displayed on the bottom center portion of theeach plate. 
23.22 	(c) License plates issued after July 1, 2008, requiring validation must display the 
23.23 	month of expiration in the lower left corner of each plate and the year of expiration in the 
23.24 	lower right corner of the plate.
23.25 		Subd. 9.Tax-exempt vehicle marking. Vehicles displaying tax-exempt plates 
23.26 	issued under section 16B.581 or 168.012 must have vehicle markings that comply with 
23.27 	section 168.012, subdivision 1.

23.28 	Sec. 37. Minnesota Statutes 2006, section 169.801, is amended to read:
23.29 	169.801 IMPLEMENT OF HUSBANDRY.
23.30 		Subdivision 1.Exemption from size, weight, load provisions. Except as provided 
23.31 	in this section and section 169.82, the provisions of sections 169.80 to 169.88 that govern 
23.32 	size, weight, and load do not apply to:
23.33 	(1) a horse-drawn wagon while carrying a load of loose straw or hay;
23.34 	(2) a specialized vehicle resembling a low-slung trailer having a short bed or 
23.35 	platform, while transporting one or more implements of husbandry; or
24.1 	(3) an implement of husbandry while being driven or towed at a speed of not 
24.2 	more than 30 miles per hour; provided that this exemption applies to an implement of 
24.3 	husbandry owned, leased, or under the control of a farmer or implement dealer only 
24.4 	while the implement of husbandry is being operated on noninterstate roads or highways 
24.5 	within 75 miles of any farmland or implement dealership: (i) owned, leased, or operated 
24.6 	by the farmer or implement dealer and (ii) on which the farmer or implement dealer 
24.7 	regularly uses or sells or leases the implement of husbandry while operated in compliance 
24.8 	with this section.
24.9 		Subd. 2.Weight per inch of tire width restrictions. (a) An implement of 
24.10 	husbandry that is not self-propelled and is equipped with pneumatic tires may not be 
24.11 	operated on a public highway with a maximum wheel load that exceeds 600 pounds 
24.12 	per inch of tire width before August 1, 1996, and 500 pounds per inch of tire width on 
24.13 	and after August 1, 1996.
24.14 	(b) After December 31, 2009, a person operating or towing an implement of 
24.15 	husbandry on a bridge must comply with the gross weight limitations provided in section 
24.16 	169.824.
24.17 		Subd. 3.Hitches. A towed implement of husbandry must be equipped with (1) 
24.18 	safety chains that meet the requirements of section 169.82, subdivision 3, paragraph 
24.19 	(b); (2) a regulation fifth wheel and kingpin assembly approved by the commissioner of 
24.20 	public safety; or (3) a hitch pin or other hitching device with a retainer that prevents 
24.21 	accidental unhitching.
24.22 		Subd. 4.Bridge posting. Despite subdivision 2, a person operating or towing 
24.23 	an implement of husbandry must comply with a sign that limits the maximum weight 
24.24 	allowed on a bridge.
24.25 		Subd. 5.Height and width. A person operating, towing, or transporting an 
24.26 	implement of husbandry that is higher than 13 feet six inches or wider than allowed under 
24.27 	section 169.80, subdivision 2, must ensure that the operation or transportation does not 
24.28 	damage a highway structure, utility line or structure, or other fixture adjacent to or over 
24.29 	a public highway.
24.30 		Subd. 6.Speed. No person may operate or tow an implement of husbandry at 
24.31 	a speed of more than 30 miles per hour.
24.32 		Subd. 7.Driving rules. (a) An implement of husbandry may not be operated or 
24.33 	towed on an interstate highway.
24.34 	(b) An implement of husbandry may be operated or towed to the left of the center 
24.35 	of a roadway only if it is escorted at the front by a vehicle displaying hazard warning 
25.1 	lights visible in normal sunlight and the operation does not extend into the left half of the 
25.2 	roadway more than is necessary.
25.3 		Subd. 8.Lights. An implement of husbandry must be equipped with lights that 
25.4 	comply with section 169.55, subdivisions 2 and 3.
25.5 		Subd. 9.Slow moving vehicle emblem. An implement of husbandry must comply 
25.6 	with section 169.522.
25.7 		Subd. 10.Brakes. Notwithstanding section 169.67:
25.8 	(a) A self-propelled implement of husbandry must be equipped with brakes adequate 
25.9 	to control its movement and to stop and hold it and any vehicle it is towing.
25.10 	(b) A towed implement of husbandry must be equipped with brakes adequate to 
25.11 	control its movement and to stop and hold it if:
25.12 	(1) it has a gross vehicle weight of more than 24,000 pounds and was manufactured 
25.13 	and sold after January 1, 1994;
25.14 	(2) it has a gross vehicle weight of more than 12,000 pounds and is towed by a 
25.15 	vehicle other than a self-propelled implement of husbandry; or
25.16 	(3) it has a gross vehicle weight of more than 3,000 pounds and is being towed by a 
25.17 	registered passenger automobile other than a pickup truck as defined in section 168.011, 
25.18 	subdivision 29.
25.19 	(c) If a towed implement of husbandry with a gross vehicle weight of more than 
25.20 	6,000 pounds is required under paragraph (b) to have brakes, it must also have brakes 
25.21 	adequate to stop and hold it if it becomes detached from the towing vehicle.
25.22 		Subd. 11.Manure application technologies. The Department of Transportation 
25.23 	shall investigate and recommend opportunities for infrastructure adaptation to 
25.24 	accommodate the implementation of manure application technologies that lessen impacts 
25.25 	on roads and bridges.

25.26 	Sec. 38. Minnesota Statutes 2006, section 169.82, subdivision 3, is amended to read:
25.27 		Subd. 3.Hitch, chain, or cable. (a) Every trailer or semitrailer must be hitched to 
25.28 	the towing motor vehicle by a device approved by the commissioner of public safety.
25.29 	(b) Every trailer and semitrailer must be equipped with safety chains or cables 
25.30 	permanently attached to the trailer except in cases where the coupling device is a 
25.31 	regulation fifth wheel and kingpin assembly approved by the commissioner of public 
25.32 	safety. In towing, the chains or cables must be attached to the vehicles near the points of 
25.33 	bumper attachments to the chassis of each vehicle, and must be of sufficient strength to 
25.34 	control the trailer in the event of failure of the towing device. The length of chain or cable 
26.1 	must be no more than necessary to permit free turning of the vehicles. A minimum fine 
26.2 	of $25 must be imposed for a violation of this paragraph.
26.3 	(c) This subdivision does not apply to towed implements of husbandry.
26.4 	(d) No person may be charged with a violation of this section solely by reason of 
26.5 	violating a maximum speed prescribed in section 169.145 or169.67  or 169.801.

26.6 	Sec. 39. Minnesota Statutes 2006, section 169.826, subdivision 1a, is amended to read:
26.7 		Subd. 1a.Harvest season increase amount. The limitations provided in sections 
26.8 	169.822 to 169.829 are increased by ten percent from the beginning of harvest to 
26.9 	November 30 each year for the movement of sugar beets, carrots, and potatoes from the 
26.10 	field of harvest to the point of the first unloading. Transfer of the product from a farm 
26.11 	vehicle or small farm trailer, within the meaning of chapter 168, to another vehicle is not 
26.12 	considered to be the first unloading. A permit issued under section 169.86, subdivision 1, 
26.13 	paragraph (a), is required. The commissioner shall not issue permits under this subdivision 
26.14 	if to do so will result in a loss of federal highway funding to the state.

26.15 	Sec. 40. Minnesota Statutes 2006, section 169.85, subdivision 1, is amended to read:
26.16 		Subdivision 1.Driver to stop for weighing. (a) The driver of a vehicle that has 
26.17 	been lawfully stopped may be required by an officer to submit the vehicle and load to a 
26.18 	weighing by means of portable or stationary scales.
26.19 	(b) In addition, the officer may require that the vehicle be driven to the nearest 
26.20 	available scales, but only if:
26.21 	(1) the distance to the scales is no further than five miles, or if the distance from the 
26.22 	point where the vehicle is stopped to the vehicle's destination is not increased by more 
26.23 	than ten miles as a result of proceeding to the nearest available scales; and
26.24 	(2) if the vehicle is a commercial motor vehicle, no more than two other commercial 
26.25 	motor vehicles are waiting to be inspected at the scale.
26.26 	(c) Official traffic control devices as authorized by section 169.06 may be used to 
26.27 	direct the driver to the nearest scale.
26.28 	(d) When a truck weight enforcement operation is conducted by means of portable or 
26.29 	stationary scales, signs giving notice of the operation must be posted within the highway 
26.30 	right-of-way and adjacent to the roadway within two miles of the operation. The driver of 
26.31 	a truck or combination of vehicles registered for or weighing in excess of 12,000with a 
26.32 	gross vehicle weight exceeding 10,000 pounds shall proceed to the scale site and submit 
26.33 	the vehicle to weighing and inspection.

27.1 	Sec. 41. Minnesota Statutes 2006, section 169.86, is amended by adding a subdivision 
27.2 	to read:
27.3 		Subd. 8.Tow truck. A tow truck or towing vehicle, when towing a disabled or 
27.4 	damaged vehicle to a place of repair or to a place of safekeeping, may exceed the length 
27.5 	and weight limitations of this chapter, subject to a $300 annual permit fee and any other 
27.6 	conditions prescribed by the commissioner.

27.7 	Sec. 42. Minnesota Statutes 2006, section 169A.03, subdivision 23, is amended to read:
27.8 		Subd. 23.School bus. "School bus" has the meaning given in section 169.01, 
27.9 	subdivision 6. In addition, the term includes type III school buses as described in section 
27.10 	169.01, subdivision 6, clause (5), when driven by employees or agents of school districts 
27.11 	for transportation.

27.12 	EFFECTIVE DATE. This section is effective August 1, 2008, and applies to crimes 
27.13 	committed on or after that date.

27.14 	Sec. 43. Minnesota Statutes 2006, section 171.01, subdivision 35, is amended to read:
27.15 		Subd. 35.Hazardous materials. "Hazardous materials" means those materials 
27.16 	found to be hazardous for the purposes of the federal Hazardous Materials Transportation 
27.17 	Act and that require the motor vehicleany material that has been designated as hazardous 
27.18 	under United States Code, title 49, section 5103, and is required to be placarded under 
27.19 	Code of Federal Regulations, title 49, parts 100-185 part 172, subpart F, or any quantity of 
27.20 	a material listed as a select agent or toxin in Code of Federal Regulations, title 42, part 73.

27.21 	Sec. 44. Minnesota Statutes 2006, section 171.01, subdivision 46, is amended to read:
27.22 		Subd. 46.School bus. "School bus" means a motor vehicle used to transport pupils 
27.23 	to or from a school defined in section 120A.22, or to or from school-related activities, 
27.24 	by the school or a school district or by someone under an agreement with the school or a 
27.25 	school district. A school bus does not include a motor vehicle transporting children to or 
27.26 	from school for which parents or guardians receive direct compensation from a school 
27.27 	district, a motor coach operating under charter carrier authority, a transit bus providing 
27.28 	services as defined in section 174.22, subdivision 7, or a vehicle otherwise qualifying as 
27.29 	a type III vehicle under section 169.01, subdivision 6, paragraph (5), when the vehicle 
27.30 	is properly registered and insured and being driven by an employee or agent of a school 
27.31 	district for nonscheduled transportation. has the meaning given in section 169.01, 
27.32 	subdivision 6.

28.1 	Sec. 45. Minnesota Statutes 2007 Supplement, section 171.02, subdivision 2, is 
28.2 	amended to read:
28.3 		Subd. 2.Driver's license classifications, endorsements, exemptions. (a) Drivers' 
28.4 	licenses are classified according to the types of vehicles that may be driven by the holder 
28.5 	of each type or class of license. The commissioner may, as appropriate, subdivide the 
28.6 	classes listed in this subdivision and issue licenses classified accordingly.
28.7 	(b) Except as provided in paragraph (c), clauses (1) and (2), and subdivision 2a, no 
28.8 	class of license is valid to operate a motorcycle, school bus, tank vehicle, double-trailer 
28.9 	or triple-trailer combination, vehicle transporting hazardous materials, or bus, unless 
28.10 	so endorsed. There are four general classes of licenses as described in paragraphs (c) 
28.11 	through (f).
28.12 	(c) Class D drivers' licenses are valid for:
28.13 	(1) operating all farm trucks if the farm truck is:
28.14 	(i) controlled and operated by a farmer, including operation by an immediate family 
28.15 	member or an employee of the farmer;
28.16 	(ii) used to transport agricultural products, farm machinery, or farm supplies, 
28.17 	including hazardous materials, to or from a farm;
28.18 	(iii) not used in the operations of a common or contract motor carrier as governed by 
28.19 	Code of Federal Regulations, title 49, part 365; and
28.20 	(iv) used within 150 miles of the farm;
28.21 	(2) notwithstanding paragraph (b), operating an authorized emergency vehicle, 
28.22 	as defined in section 169.01, subdivision 5, whether or not in excess of 26,000 pounds 
28.23 	gross vehicle weight;
28.24 	(3) operating a recreational vehicle as defined in section 168.011, subdivision 25, 
28.25 	that is operated for personal use;
28.26 	(4) operating all single-unit vehicles except vehicles with a gross vehicle weight of 
28.27 	more than 26,000 pounds, vehicles designed to carry more than 15 passengers including 
28.28 	the driver, and vehicles that carry hazardous materials;
28.29 	(5) notwithstanding paragraph (d), operating a type A school bus or a multifunctional 
28.30 	school activity bus without a school bus endorsement if:
28.31 	(i) the bus has a gross vehicle weight of 10,000 pounds or less;
28.32 	(ii) the bus is designed to transport 15 or fewer passengers, including the driver; and
28.33 	(iii) the requirements of subdivision 2a are satisfied, as determined by the 
28.34 	commissioner;
28.35 	(6) operating any vehicle or combination of vehicles when operated by a licensed 
28.36 	peace officer while on duty; and
29.1 	(7) towing vehicles if:
29.2 	(i) the towed vehicles have a gross vehicle weight of 10,000 pounds or less; or
29.3 	(ii) the towed vehicles have a gross vehicle weight of more than 10,000 pounds and 
29.4 	the combination of vehicles has a gross vehicle weight of 26,000 pounds or less.
29.5 	(d) Class C drivers' licenses are valid for:
29.6 	(1) operating class D motor vehicles;
29.7 	(2) with a hazardous materials endorsement, transporting hazardous materials in
29.8 	operating class D vehicles to transport hazardous materials; and
29.9 	(3) with a passenger endorsement, operating buses; and 
29.10 	(3) (4) with a passenger endorsement and school bus endorsement, operating school 
29.11 	buses designed to transport 15 or fewer passengers, including the driver.
29.12 	(e) Class B drivers' licenses are valid for:
29.13 	(1) operating all class C motor vehicles, class D motor vehicles, and all other 
29.14 	single-unit motor vehicles including, with a passenger endorsement, buses; and
29.15 	(2) towing only vehicles with a gross vehicle weight of 10,000 pounds or less.
29.16 	(f) Class A drivers' licenses are valid for operating any vehicle or combination of 
29.17 	vehicles.

29.18 	Sec. 46. Minnesota Statutes 2006, section 171.02, is amended by adding a subdivision 
29.19 	to read:
29.20 		Subd. 2b.Exception for type III school bus drivers. (a) Notwithstanding 
29.21 	subdivision 2, paragraph (c), the holder of a class D driver's license, without a school bus 
29.22 	endorsement, may operate a type III school bus described in section 169.01, subdivision 6, 
29.23 	clause (5), under the conditions in paragraphs (b) through (n).
29.24 	(b) The operator is an employee of the entity that owns, leases, or contracts for 
29.25 	the school bus.
29.26 	(c) The operator's employer has adopted and implemented a policy that provides for 
29.27 	annual training and certification of the operator in:
29.28 	(1) safe operation of a type III school bus;
29.29 	(2) understanding student behavior, including issues relating to students with 
29.30 	disabilities;
29.31 	(3) encouraging orderly conduct of students on the bus and handling incidents of 
29.32 	misconduct appropriately;
29.33 	(4) knowing and understanding relevant laws, rules of the road, and local school 
29.34 	bus safety policies;
29.35 	(5) handling emergency situations;
30.1 	(6) proper use of seat belts and child safety restraints;
30.2 	(7) performance of pretrip vehicle inspections; and
30.3 	(8) safe loading and unloading of students, including, but not limited to:
30.4 	(i) utilizing a safe location for loading and unloading students at the curb, on the 
30.5 	nontraffic side of the roadway, or at off-street loading areas, driveways, yards, and other 
30.6 	areas to enable the student to avoid hazardous conditions;
30.7 	(ii) refraining from loading and unloading students in a vehicular traffic lane, on the 
30.8 	shoulder, in a designated turn lane, or a lane adjacent to a designated turn lane;
30.9 	(iii) avoiding a loading or unloading location that would require a pupil to cross a 
30.10 	road, or ensuring that the driver or an aide personally escort the pupil across the road if 
30.11 	it is not reasonably feasible to avoid such a location; and
30.12 	(iv) placing the type III school bus in "park" during loading and unloading.
30.13 	(d) A background check or background investigation of the operator has been 
30.14 	conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03
30.15 	for school district employees; section 144.057 or chapter 245C for day care employees; 
30.16 	or section 171.321, subdivision 3, for all other persons operating a type A or type III 
30.17 	school bus under this subdivision.
30.18 	(e) Operators shall submit to a physical examination as required by section 171.321, 
30.19 	subdivision 2.
30.20 	(f) The operator's employer has adopted and implemented a policy that provides 
30.21 	for mandatory drug and alcohol testing of applicants for operator positions and current 
30.22 	operators, in accordance with section 181.951, subdivisions 2, 4, and 5.
30.23 	(g) The operator's driver's license is verified annually by the entity that owns, leases, 
30.24 	or contracts for the school bus.
30.25 	(h) A person who sustains a conviction, as defined under section 609.02, of violating 
30.26 	section 169A.25, 169A.26, 169A.27, or 169A.31, or whose driver's license is revoked 
30.27 	under sections 169A.50 to 169A.53 of the implied consent law, or who is convicted of or 
30.28 	has their driver's license revoked under a similar statute or ordinance of another state, is 
30.29 	precluded from operating a type III school bus for five years from the date of conviction.
30.30 	(i) A person who has ever been convicted of a disqualifying offense as defined in 
30.31 	section 171.3215, subdivision 1, paragraph (c), may not operate a type III school bus 
30.32 	under this subdivision.
30.33 	(j) A person who sustains a conviction, as defined under section 609.02, of a moving 
30.34 	offense in violation of chapter 169 within three years of the first of three other moving 
30.35 	offenses is precluded from operating a type III school bus for one year from the date of 
30.36 	the last conviction.
31.1 	(k) An operator who sustains a conviction as described in paragraph (h), (i), or (j) 
31.2 	while employed by the entity that owns, leases, or contracts for the school bus, shall report 
31.3 	the conviction to the employer within ten days of the date of the conviction.
31.4 	(l) Students riding the type III school bus must have training required under section 
31.5 	123B.90, subdivision 2.
31.6 	(m) Documentation of meeting the requirements listed in this subdivision must 
31.7 	be maintained under separate file at the business location for each type III school bus 
31.8 	operator. The business manager, school board, governing body of a nonpublic school, or 
31.9 	any other entity that owns, leases, or contracts for the type III school bus operating under 
31.10 	this subdivision is responsible for maintaining these files for inspection.
31.11 	(n) The type III school bus must bear a current certificate of inspection issued under 
31.12 	section 169.451.
31.13 	(o) An operator employed by a school or school district, whose normal duties do 
31.14 	not include operating a type III school bus, who holds a class D driver's license without a 
31.15 	school bus endorsement, may operate a type III school bus and is exempt from paragraphs 
31.16 	(d), (e), (f), (g), and (k).

31.17 	EFFECTIVE DATE. This section is effective September 1, 2008.

31.18 	Sec. 47. Minnesota Statutes 2006, section 171.03, is amended to read:
31.19 	171.03 PERSONS EXEMPT.
31.20 	The following persons are exempt from license hereunder:
31.21 	(a) A person in the employ or service of the United States federal government is 
31.22 	exempt while driving or operating a motor vehicle owned by or leased to the United 
31.23 	States federal government.
31.24 	(b) A person in the employ or service of the United States federal government is 
31.25 	exempt from the requirement to possess a valid class A, class B, or class C commercial 
31.26 	driver's license while driving or operating for military purposes a commercial motor 
31.27 	vehicle owned by or leased to for the United States federal government if the person is:
31.28 	(1) on active duty in the U. S. Coast Guard;
31.29 	(2) on active duty in a branch of the U. S. Armed Forces, which includes the Army, 
31.30 	Air Force, Navy, and Marine Corps;
31.31 	(3) a member of a reserve component of the U. S. Armed Forces; or
31.32 	(4) on active duty in the Army National Guard or Air National Guard, which 
31.33 	includes (i) a member on full-time National Guard duty, (ii) a member undergoing 
32.1 	part-time National Guard training, and (iii) a National Guard military technician, who is a 
32.2 	civilian required to wear a military uniform.
32.3 	The exemption provided under this paragraph does not apply to a U. S. Armed Forces 
32.4 	Reserve technician.
32.5 	(c) Any person while driving or operating any farm tractor or implement of 
32.6 	husbandry temporarily on a highway is exempt. For purposes of this section, an all-terrain 
32.7 	vehicle, as defined in section 84.92, subdivision 8, an off-highway motorcycle, as defined 
32.8 	in section 84.787, subdivision 7, and an off-road vehicle, as defined in section 84.797, 
32.9 	subdivision 7, are not implements of husbandry.
32.10 	(d) A nonresident who is at least 15 years of age and who has in immediate 
32.11 	possession a valid driver's license issued to the nonresident in the home state or country 
32.12 	may operate a motor vehicle in this state only as a driver.
32.13 	(e) A nonresident who has in immediate possession a valid commercial driver's 
32.14 	license issued by a state or jurisdiction in accordance with the standards of Code of 
32.15 	Federal Regulations, title 49, part 383, and who is operating in Minnesota the class of 
32.16 	commercial motor vehicle authorized by the issuing state or jurisdiction is exempt.
32.17 	(f) Any nonresident who is at least 18 years of age, whose home state or country does 
32.18 	not require the licensing of drivers may operate a motor vehicle as a driver, but only for a 
32.19 	period of not more than 90 days in any calendar year, if the motor vehicle so operated is 
32.20 	duly registered for the current calendar year in the home state or country of the nonresident.
32.21 	(g) Any person who becomes a resident of the state of Minnesota and who has in 
32.22 	possession a valid driver's license issued to the person under and pursuant to the laws of 
32.23 	some other state or jurisdiction or by military authorities of the United States may operate 
32.24 	a motor vehicle as a driver, but only for a period of not more than 60 days after becoming 
32.25 	a resident of this state, without being required to have a Minnesota driver's license as 
32.26 	provided in this chapter.
32.27 	(h) Any person who becomes a resident of the state of Minnesota and who has in 
32.28 	possession a valid commercial driver's license issued by another state or jurisdiction in 
32.29 	accordance with the standards of Code of Federal Regulations, title 49, part 383, is exempt 
32.30 	for not more than 30 days after becoming a resident of this state.
32.31 	(i) Any person operating a snowmobile, as defined in section 84.81, is exempt.

32.32 	Sec. 48. Minnesota Statutes 2006, section 171.055, subdivision 1, is amended to read:
32.33 		Subdivision 1.Requirements for provisional license; misdemeanor. (a) The 
32.34 	department may issue a provisional license, which must be distinctive in appearance 
32.35 	from a driver's license, to an applicant who:
33.1 	(1) has reached the age of 16 years;
33.2 	(2) during the six months immediately preceding the application for the provisional 
33.3 	license has possessed an instruction permit and has incurred (i) no convictions for a 
33.4 	violation of section 169A.20, 169A.33, 169A.35, or sections 169A.50 to 169A.53, (ii) no 
33.5 	convictions for a crash-related moving violation, and (iii) no convictions for a moving 
33.6 	violation that is not crash related; 
33.7 	(3) has successfully completed a course of driver education in accordance with 
33.8 	department rules, including but not limited to 30 hours of classroom instruction and six 
33.9 	hours of behind-the-wheel driving instruction; provided that, upon request of a parent 
33.10 	or guardian, an additional four hours of behind-the-wheel driving instruction must be 
33.11 	provided during the months of December, January, and February;
33.12 	(4) completes the required application, which must be approved by (i) either parent 
33.13 	when both reside in the same household as the minor applicant or, if otherwise, then (ii) 
33.14 	the parent or spouse of the parent having custody or, in the event there is no court order 
33.15 	for custody, then (iii) the parent or spouse of the parent with whom the minor is living 
33.16 	or, if items (i) to (iii) do not apply, then (iv) the guardian having custody of the minor or, 
33.17 	in the event a person under the age of 18 has no living father, mother, or guardian, or is 
33.18 	married or otherwise legally emancipated, then (v) the applicant's adult spouse, adult close 
33.19 	family member, or adult employer; provided, that the approval required by this clause 
33.20 	contains a verification of the age of the applicant and the identity of the parent, guardian, 
33.21 	adult spouse, adult close family member, or adult employer;
33.22 	(5) presents certification a logbook or schedule certified by the person who approves 
33.23 	the application under clause (4) stating attesting that the applicant has driven a motor 
33.24 	vehicle accompanied by and under the supervision of a licensed driver at least 21 years of 
33.25 	age, for no less than 30 50 hours, at least ten of which were nighttime hours; and
33.26 	(6) pays the fee required in section 171.06, subdivision 2. 
33.27 	(b) For purposes of this section, "moving violation" has the meaning given it in 
33.28 	section 171.04, subdivision 1. 
33.29 	(c) Notwithstanding paragraph (a), clause (2), the commissioner shall not issue a 
33.30 	provisional license to a person who has ever incurred a conviction for violation of section 
33.31 	169A.20, 169A.33, or 169A.35; a violation of a provision of sections 169A.50 to 169A.53; 
33.32 	or a crash-related moving violation, and at the time of the conviction the person did not 
33.33 	possess an instruction permit. 
33.34 	(d) If a person approving the application under paragraph (a), clause (4), falsifies an 
33.35 	entry, or knows an entry is false, in a logbook or schedule certified by the person under 
33.36 	paragraph (a), clause (5), that person is guilty of a misdemeanor.

34.1 	Sec. 49. Minnesota Statutes 2006, section 171.055, subdivision 2, is amended to read:
34.2 		Subd. 2.Use of provisional license. (a) A provisional license holder may operate a 
34.3 	motor vehicle only when every occupant under the age of 18 has a seat belt or child 
34.4 	passenger restraint system properly fastened. A person who violates this paragraph is 
34.5 	subject to a fine of $25. A peace officer may not issue a citation for a violation of this 
34.6 	paragraph unless the officer lawfully stopped or detained the driver of the motor vehicle 
34.7 	for a moving violation as defined in section 171.04. The commissioner shall not record a 
34.8 	violation of this paragraph on a person's driving record.
34.9 	(b) A provisional license holder may not operate a vehicle while communicating 
34.10 	over, or otherwise operating, a cellular or wireless telephone, whether handheld or 
34.11 	hands free, when the vehicle is in motion. The provisional license holder may assert 
34.12 	as an affirmative defense that the violation was made for the sole purpose of obtaining 
34.13 	emergency assistance to prevent a crime about to be committed, or in the reasonable 
34.14 	belief that a person's life or safety was in danger. Violation of this paragraph is a petty 
34.15 	misdemeanor subject to section 169.89, subdivision 2.
34.16 	(c) For the first six months of provisional licensure, a provisional license holder may 
34.17 	not operate a motor vehicle carrying more than one passenger under the age of 20 years 
34.18 	who is not a member of the holder's immediate family. For the second six months, the 
34.19 	holder of the license may not operate a motor vehicle that is carrying more than three 
34.20 	passengers who are under the age of 20 years and who are not members of the holder's 
34.21 	immediate family. This paragraph does not apply if the provisional license holder is 
34.22 	accompanied by a parent or guardian.
34.23 	(d) For the first six months of provisional licensure, a provisional license holder who 
34.24 	is less than 18 years of age may operate a motor vehicle between the hours of midnight 
34.25 	and 5:00 a.m. only when the license holder is:
34.26 	(1) driving between the license holder's home and place of employment;
34.27 	(2) driving between the license holder's home and a school event for which the 
34.28 	school has not provided transportation;
34.29 	(3) driving for employment purposes; or
34.30 	(4) accompanied by a licensed driver or Minnesota identification card holder who is 
34.31 	at least 20 years of age.
34.32 	(e)  If the holder of a provisional license during the period of provisional licensing 
34.33 	incurs (1) a conviction for a violation of section 169A.20, 169A.33, 169A.35, or sections 
34.34 	169A.50 to 169A.53, (2) a conviction for a crash-related moving violation, or (3) more 
34.35 	than one conviction for a moving violation that is not crash related, the person may not be 
35.1 	issued a driver's license until 12 consecutive months have expired since the date of the 
35.2 	conviction or until the person reaches the age of 18 years, whichever occurs first.
35.3 	(f) For purposes of this section, "immediate family" means permanent members of 
35.4 	the same household who are related by blood, adoption, or marriage.

35.5 	Sec. 50. Minnesota Statutes 2006, section 171.0701, is amended to read:
35.6 	171.0701 DRIVER EDUCATION; ORGAN AND TISSUE DONATION
35.7 	CONTENT.
35.8 	(a) The commissioner shall adopt rules requiring a minimum of 30 minutes of 
35.9 	instruction, beginning January 1, 2007, relating to organ and tissue donations and the 
35.10 	provisions of section 171.07, subdivision 5, for persons enrolled in driver education 
35.11 	programs offered at public schools, private schools, and commercial driver training 
35.12 	schools. 
35.13 	(b) The commissioner shall adopt rules for persons enrolled in driver education 
35.14 	programs offered at public schools, private schools, and commercial driver training 
35.15 	schools, requiring inclusion in the course of instruction, by January 1, 2009, a section on 
35.16 	awareness and safe interaction with commercial motor vehicle traffic. The rules must 
35.17 	require classroom instruction and behind-the-wheel training that includes, but is not 
35.18 	limited to, truck stopping distances, proper distances for following trucks, identification of 
35.19 	truck blind spots, and avoidance of driving in truck blind spots.
35.20 	(c) The rules adopted by the commissioner under paragraph (b) are exempt from 
35.21 	the rulemaking provisions of chapter 14. The rules are subject to section 14.386, except 
35.22 	that notwithstanding paragraph (b) of section 14.386, the rules continue in effect until 
35.23 	repealed or superseded by other law or rule.

35.24 	Sec. 51. Minnesota Statutes 2006, section 171.13, is amended by adding a subdivision 
35.25 	to read:
35.26 		Subd. 1j.Driver's manual; interaction with commercial motor vehicle. The 
35.27 	commissioner shall include in each edition of the driver's manual published by the 
35.28 	department after August 1, 2008, a section that includes information on awareness and 
35.29 	safe interaction with commercial motor vehicle traffic.

35.30 	Sec. 52. Minnesota Statutes 2006, section 171.165, subdivision 2, is amended to read:
35.31 		Subd. 2.Implied consent revocation. The commissioner shall disqualify a person 
35.32 	from operating commercial motor vehicles for a revocation under section 169A.52 or a 
35.33 	statute or ordinance from another state or jurisdiction in conformity with it, in accordance 
36.1 	with for a period that is equivalent in duration under the driver disqualifications and 
36.2 	penalties in Code of Federal Regulations, title 49, part 383, subpart D, that pertain to a 
36.3 	conviction of being under the influence of alcohol or refusal to be tested.

36.4 	Sec. 53. [171.168] NOTIFICATION OF CONVICTION FOR VIOLATION BY 
36.5 	COMMERCIAL DRIVER.
36.6 	(a) Each person who operates a commercial motor vehicle, who has a commercial 
36.7 	driver's license issued by this state, and who is convicted of a criminal offense; of a serious 
36.8 	traffic violation, as defined in Code of Federal Regulations, title 49, section 383.5; or of 
36.9 	violating any other state or local law relating to motor vehicle traffic control, other than a 
36.10 	parking violation, in any type of motor vehicle in another state or jurisdiction, shall notify 
36.11 	the department's Division of Driver and Vehicle Services of the conviction. The person 
36.12 	shall notify the division within 30 days after the date that the person was convicted.
36.13 	(b) Each person who operates a commercial motor vehicle, who has a commercial 
36.14 	driver's license issued by this state, and who is convicted of violating, in any type of 
36.15 	motor vehicle, a Minnesota state or local law relating to motor vehicle traffic control, 
36.16 	other than a parking violation, shall notify the person's employer of the conviction. The 
36.17 	person shall notify the person's employer within 30 days after the date that the person was 
36.18 	convicted. If the person is not currently employed, the person shall notify the division 
36.19 	according to paragraph (a).
36.20 	(c) Notification to the division must be made in writing and contain the following 
36.21 	information:
36.22 	(1) the driver's full name; 
36.23 	(2) the driver's license number; 
36.24 	(3) the date of conviction; 
36.25 	(4) the specific criminal or other offense; serious traffic violation, as defined in Code 
36.26 	of Federal Regulations, title 49, section 383.5; and any other violation of state or local 
36.27 	law relating to motor vehicle traffic control, for which the person was convicted and 
36.28 	any suspension, revocation, or cancellation of certain driving privileges that resulted 
36.29 	from the conviction; 
36.30 	(5) an indication whether the violation was in a commercial motor vehicle; 
36.31 	(6) the location of the offense; and 
36.32 	(7) the driver's signature. 

36.33 	Sec. 54. [171.169] NOTIFICATION OF SUSPENSION OF LICENSE OF 
36.34 	COMMERCIAL DRIVER.
37.1 	Each employee, as defined in Code of Federal Regulations, title 49, section 383.5, 
37.2 	who has a Minnesota-issued driver's license suspended, revoked, or canceled by this 
37.3 	state or another state or jurisdiction, who loses the right to operate a commercial motor 
37.4 	vehicle in this state or another state or jurisdiction for any period, or who is disqualified 
37.5 	from operating a commercial motor vehicle for any period, shall notify the person's 
37.6 	employer of the suspension, revocation, cancellation, lost privilege, or disqualification. 
37.7 	The employee shall notify the employer before the end of the business day following 
37.8 	the day the employee received notice of the suspension, revocation, cancellation, lost 
37.9 	privilege, or disqualification. 

37.10 	Sec. 55. Minnesota Statutes 2006, section 171.321, subdivision 1, is amended to read:
37.11 		Subdivision 1.Endorsement. No person shall drive a school bus when transporting 
37.12 	school children to or from school or upon a school-related trip or activity without having a 
37.13 	valid class A, class B, or class C driver's license with a school bus endorsement except 
37.14 	that a person possessing a valid driver's license but not a school bus endorsement may 
37.15 	drive a vehicle with a seating capacity of ten or less persons used as a school bus but not 
37.16 	outwardly equipped or identified as a school bus type III vehicle.

37.17 	Sec. 56. Minnesota Statutes 2006, section 174.02, subdivision 2, is amended to read:
37.18 		Subd. 2.Unclassified positions. The commissioner may establish four positions in 
37.19 	the unclassified service at the deputy and commissioner, assistant commissioner, assistant 
37.20 	to commissioner, or personal secretary levels. No more than two of these positions shall 
37.21 	be at the deputy commissioner level. The commissioner shall appoint at least two deputy 
37.22 	commissioners, and one must serve as the chief engineer and be licensed as a professional 
37.23 	engineer under section 326.02.

37.24 	Sec. 57. Minnesota Statutes 2006, section 174.03, subdivision 1, is amended to read:
37.25 		Subdivision 1.Statewide transportation plan; priorities; schedule of 
37.26 	expenditures. In order to best meet the present and future transportation needs of 
37.27 	the public, to insure a strong state economy, to make most efficient use of public and 
37.28 	private funds, and to promote the more efficient use of energy and other resources for 
37.29 	transportation purposes, the commissioner shall:
37.30 	(1) three months after notification that the department is ready to commence 
37.31 	operations and prior to the drafting of the statewide transportation plan, hold public 
37.32 	hearings as may be appropriate solely for the purpose of receiving suggestions for future 
37.33 	transportation alternatives and priorities for the state. The Metropolitan Council, regional 
38.1 	development commissions, and port authorities shall appear at the hearings and submit 
38.2 	information concerning transportation-related planning undertaken and accomplished by 
38.3 	these agencies. Other political subdivisions may appear and submit such information at 
38.4 	the hearings. These hearings shall be completed no later than six months from the date of 
38.5 	the commissioner's notification;
38.6 	(2) develop, adopt, revise, and monitor a statewide transportation plan, taking into 
38.7 	account the suggestions and information submitted at the public hearings held pursuant 
38.8 	to clause (1). The plan shall incorporate all modes of transportation and provide for the 
38.9 	interconnection and coordination of different modes of transportation. The commissioner 
38.10 	shall evaluate alternative transportation programs and facilities proposed for inclusion 
38.11 	in the plan in terms of economic costs and benefits, safety aspects, impact on present 
38.12 	and planned land uses, environmental effects, energy efficiency, national transportation 
38.13 	policies and priorities, and availability of federal and other financial assistance;
38.14 	(3) based upon the statewide transportation plan, develop statewide transportation 
38.15 	priorities and schedule authorized public capital improvements and other authorized public 
38.16 	transportation expenditures pursuant to the priorities. As permitted by the federal surface 
38.17 	transportation program, the commissioner shall prioritize for funding those transportation 
38.18 	projects in the metropolitan area, as defined in section 473.121, subdivision 2, that are 
38.19 	consistent with policies included in the Metropolitan Council's metropolitan development 
38.20 	guide, transportation policy plan, and regional development framework, and that have 
38.21 	been awarded funding through the federal surface transportation program;
38.22 	(4) complete the plan and priorities required by this subdivision no later than July 
38.23 	1, 1978. Upon completion of the plan and priorities, the commissioner shall prepare 
38.24 	and periodically revise, as necessary, the schedule of authorized public transportation 
38.25 	expenditures. The plan, priorities, and schedule are exempt from the provisions of the 
38.26 	Administrative Procedure Act.

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

38.28 	Sec. 58. Minnesota Statutes 2006, section 174.24, is amended by adding a subdivision 
38.29 	to read:
38.30 		Subd. 1a.Transit service needs implementation plan. The commissioner shall 
38.31 	develop and implement a transit service needs implementation plan that contains a goal of 
38.32 	meeting at least 80 percent of unmet transit service needs in greater Minnesota by July 1, 
38.33 	2015, and meeting at least 90 percent of unmet transit service needs in greater Minnesota 
38.34 	by July 1, 2025. The plan must include, but is not limited to, the following: an analysis of 
38.35 	ridership and transit service needs throughout greater Minnesota; a calculation of unmet 
39.1 	needs; an assessment of the level and type of service required to meet unmet needs; an 
39.2 	analysis of costs and revenue options; and, a plan to reduce unmet transit service needs as 
39.3 	specified in this subdivision. The plan must specifically address special transportation 
39.4 	service ridership and needs. The commissioner may amend the plan as necessary, and 
39.5 	may use all or part of the 2001 greater Minnesota public transportation plan created by the 
39.6 	Minnesota Department of Transportation.

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

39.8 	Sec. 59. [174.247] ANNUAL TRANSIT REPORT.
39.9 	(a) By February 15 annually, the commissioner shall submit a report to the legislature 
39.10 	on transit services outside the metropolitan area. The Metropolitan Council and any 
39.11 	public transit system receiving assistance under section 174.24 shall provide assistance 
39.12 	in creating the report, as requested by the commissioner.
39.13 	(b) The report must include, at a minimum, the following:
39.14 	(1) a descriptive overview of public transit in Minnesota;
39.15 	(2) a descriptive summary of funding sources and assistance programs;
39.16 	(3) a summary of each public transit system receiving assistance under section 
39.17 	174.24;
39.18 	(4) data that identifies use of volunteers in providing transit service;
39.19 	(5) financial data that identifies operating and capital costs, and funding sources, 
39.20 	for each public transit system and for each transit system classification under section 
39.21 	174.24, subdivision 3b;
39.22 	(6) a summary of progress with the transit service needs implementation plan under 
39.23 	section 174.24, subdivision 1a, including identification of any adjustments made to the 
39.24 	plan; and
39.25 	(7) a calculation of the amounts of surplus or insufficient funds available for (i) 
39.26 	paying the state share of transit operating costs under section 174.24, subdivision 3b, and 
39.27 	(ii) following the transit service needs implementation plan.

39.28 	EFFECTIVE DATE. This section is effective August 1, 2009.

39.29 	Sec. 60. Minnesota Statutes 2006, section 221.011, is amended by adding a subdivision 
39.30 	to read:
39.31 		Subd. 50.Out-of-service order. "Out-of-service order" has the meaning given it in 
39.32 	Code of Federal Regulations, title 49, section 383.5.

40.1 	Sec. 61. Minnesota Statutes 2006, section 221.0314, subdivision 9a, is amended to 
40.2 	read:
40.3 		Subd. 9a.Hours of service exemptions. The federal regulations incorporated in 
40.4 	subdivision 9 for maximum driving and on-duty time do not apply to drivers engaged in
40.5 	the interstate or intrastate transportation of:
40.6 	(1) the interstate or intrastate transportation of agricultural commodities or 
40.7 	farm supplies, and the intrastate transportation of wholesale anhydrous ammonia, for 
40.8 	agricultural purposes in Minnesota during the planting and harvesting seasons from March 
40.9 	15 to December 15 of each year; or
40.10 	(2) the interstate or intrastate transportation of sugar beets during the harvesting 
40.11 	season for sugar beets from September 1 to May 15 of each year;
40.12 	if the transportation is limited to an area within a 100-air-mile radius from the source of 
40.13 	the commodities or the distribution point for the farm supplies.

40.14 	Sec. 62. Minnesota Statutes 2006, section 221.036, subdivision 1, is amended to read:
40.15 		Subdivision 1.Order. The commissioner may issue an order requiring violations 
40.16 	to be corrected and administratively assessing monetary penalties for a violation of 
40.17 	(1) section 221.021; (2) section 221.033, subdivision 2b; (3) section 221.151; (4) 
40.18 	section 221.171; (5) section 221.141; (6) a federal, state, or local law, regulation, rule, 
40.19 	or ordinance pertaining to railroad-highway grade crossings; or (6) (7) rules of the 
40.20 	commissioner relating to the transportation of hazardous waste, motor carrier operations, 
40.21 	insurance, or tariffs and accounting. An order must be issued as provided in this section. 

40.22 	Sec. 63. Minnesota Statutes 2006, section 221.036, subdivision 3, is amended to read:
40.23 		Subd. 3.Amount of penalty; considerations. (a) The commissioner may issue an 
40.24 	order assessing a penalty of up to $5,000 for all violations of section 221.021; 221.141; 
40.25 	221.151; or 221.171, or rules of the commissioner relating to motor carrier operations, 
40.26 	insurance, or tariffs and accounting, identified during a single inspection, audit, or 
40.27 	investigation. 
40.28 	(b) The commissioner may issue an order assessing a penalty up to a maximum of 
40.29 	$10,000 for all violations of section 221.033, subdivision 2b, identified during a single 
40.30 	inspection or audit. 
40.31 	(c) In determining the amount of a penalty, the commissioner shall consider:
40.32 	(1) the willfulness of the violation;
40.33 	(2) the gravity of the violation, including damage to humans, animals, air, water, 
40.34 	land, or other natural resources of the state;
41.1 	(3) the history of past violations, including the similarity of the most recent violation 
41.2 	and the violation to be penalized, the time elapsed since the last violation, the number of 
41.3 	previous violations, and the response of the person to the most recent violation identified;
41.4 	(4) the economic benefit gained by the person by allowing or committing the 
41.5 	violation; and
41.6 	(5) other factors as justice may require, if the commissioner specifically identifies 
41.7 	the additional factors in the commissioner's order.
41.8 	(d) The commissioner shall assess a penalty of not less than $1,000 against a driver 
41.9 	who is convicted of a violation of an out-of-service order. The commissioner shall assess 
41.10 	a penalty of not more than $10,000 against an employer who knowingly allows or requires 
41.11 	an employee to operate a commercial motor vehicle in violation of an out-of-service order.
41.12 	in accordance with Code of Federal Regulations, title 49, section 383.53 against:
41.13 	(1) a driver who is convicted of a violation of an out-of-service order; 
41.14 	(2) an employer who knowingly allows or requires an employee to operate a 
41.15 	commercial motor vehicle in violation of an out-of-service order; or
41.16 	(3) an employer who knowingly allows or requires an employee to operate a 
41.17 	commercial motor vehicle in violation of a federal, state, or local law or regulation 
41.18 	pertaining to railroad-highway grade crossings.

41.19 	Sec. 64. Minnesota Statutes 2006, section 299D.03, subdivision 1, is amended to read:
41.20 		Subdivision 1.Members, powers, and duties. (a) The commissioner is hereby 
41.21 	authorized to employ and designate a chief supervisor, a chief assistant supervisor, and 
41.22 	such assistant supervisors, sergeants and officers as are provided by law, who shall 
41.23 	comprise the Minnesota State Patrol.
41.24 	(b) The members of the Minnesota State Patrol shall have the power and authority:
41.25 	(1) as peace officers to enforce the provisions of the law relating to the protection of 
41.26 	and use of trunk highways;
41.27 	(2) at all times to direct all traffic on trunk highways in conformance with law, and in 
41.28 	the event of a fire or other emergency, or to expedite traffic or to insure safety, to direct 
41.29 	traffic on other roads as conditions may require notwithstanding the provisions of law;
41.30 	(3) to serve search warrants related to criminal motor vehicle and traffic violations 
41.31 	and arrest warrants, and legal documents anywhere in the state;
41.32 	(4) to serve orders of the commissioner of public safety or the commissioner's duly 
41.33 	authorized agents issued under the provisions of the Driver's License Law, the Safety 
41.34 	Responsibility Act, or relating to authorized brake- and light-testing stations, anywhere 
42.1 	in the state and to take possession of any license, permit, or certificate ordered to be 
42.2 	surrendered;
42.3 	(5) to inspect official brake and light adjusting stations;
42.4 	(6) to make appearances anywhere within the state for the purpose of conducting 
42.5 	traffic safety educational programs and school bus clinics;
42.6 	(7) to exercise upon all trunk highways the same powers with respect to the 
42.7 	enforcement of laws relating to crimes, as sheriffs and police officers;
42.8 	(8) to cooperate, under instructions and rules of the commissioner of public 
42.9 	safety, with all sheriffs and other police officers anywhere in the state, provided that 
42.10 	said employees shall have no power or authority in connection with strikes or industrial 
42.11 	disputes;
42.12 	(9) to assist and aid any peace officer whose life or safety is in jeopardy;
42.13 	(10) as peace officers to provide security and protection to the governor, governor 
42.14 	elect, either or both houses of the legislature, and state buildings or property in the manner 
42.15 	and to the extent determined to be necessary after consultation with the governor, or a 
42.16 	designee. Pursuant to this clause, members of the State Patrol, acting as peace officers 
42.17 	have the same powers with respect to the enforcement of laws relating to crimes, as 
42.18 	sheriffs and police officers have within their respective jurisdictions;
42.19 	(11) to inspect school buses anywhere in the state for the purposes of determining 
42.20 	compliance with vehicle equipment, pollution control, and registration requirements;
42.21 	(12) as peace officers to make arrests for public offenses committed in their presence 
42.22 	anywhere within the state. Persons arrested for violations other than traffic violations 
42.23 	shall be referred forthwith to the appropriate local law enforcement agency for further 
42.24 	investigation or disposition.; and
42.25 	(13) to enforce the North American uniform out-of-service criteria and issue 
42.26 	out-of-service orders, as defined in Code of Federal Regulations, title 49, section 383.5.
42.27 	(c) The state may contract for State Patrol members to render the services described 
42.28 	in this section in excess of their regularly scheduled duty hours and patrol members 
42.29 	rendering such services shall be compensated in such amounts, manner and under such 
42.30 	conditions as the agreement provides.
42.31 	(d) Employees thus employed and designated shall subscribe an oath.

42.32 	Sec. 65. Minnesota Statutes 2006, section 299D.06, is amended to read:
42.33 	299D.06 PATROL EMPLOYEES WHO ARE NOT TROOPERS.
42.34 	(a) Department personnel must be classified employees assigned to the Division of 
42.35 	State Patrol if they are employed to enforce:
43.1 	(1) laws relating to motor vehicle equipment; school bus equipment; drivers' 
43.2 	licenses; motor vehicle registration; motor vehicle size and weight; motor carrier 
43.3 	insurance, registration, and safety; and motor vehicle petroleum taxes;
43.4 	(2) Pollution Control Agency rules relating to motor vehicle noise abatement; and
43.5 	(3) laws relating to directing the movement of vehicles.; and
43.6 	(4) the North American uniform out-of-service criteria and issue out-of-service 
43.7 	orders, as defined in Code of Federal Regulations, title 49, section 383.5.
43.8 	(b) Employees engaged in these duties, while actually on the job during their 
43.9 	working hours only, shall have power to:
43.10 	(1) issue citations in lieu of arrest and continued detention; and
43.11 	(2) prepare notices to appear in court for violation of these laws and rules, in the 
43.12 	manner provided in section 169.91, subdivision 3. 
43.13 	(c) They shall not be armed and, except as provided in this section, shall have none 
43.14 	of the other powers and privileges reserved to peace officers including the power to 
43.15 	enforce traffic laws and regulations.

43.16 	Sec. 66. Minnesota Statutes 2006, section 473.1465, is amended by adding a 
43.17 	subdivision to read:
43.18 		Subd. 4.Special transportation service assessment. As part of its annual 
43.19 	update to the performance evaluation report under section 473.13, subdivision 1a, the 
43.20 	Metropolitan Council shall include an assessment of progress towards meeting transit 
43.21 	goals for people with disabilities. The assessment must include, but is not limited to, the 
43.22 	following: a description of proposed program enhancements; an assessment of progress; 
43.23 	identification of the estimated total number of potential and actual riders who are disabled; 
43.24 	an assessment of the level and type of service required to meet unmet ridership needs; and 
43.25 	an analysis of costs and revenue options, including a calculation of the amounts of surplus 
43.26 	or insufficient funds available for achieving paratransit needs.

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

43.28 	Sec. 67. Minnesota Statutes 2006, section 473.388, subdivision 2, is amended to read:
43.29 		Subd. 2.Replacement service; eligibility. (a) The council may provide assistance 
43.30 	under the program to a statutory or home rule charter city or town or combination thereof, 
43.31 	that:
43.32 	(a) (1) is located in the metropolitan transit taxing district;
43.33 	(b) (2) is not served by the council bus service or is served only with council bus 
43.34 	routes which begin or end within the applying city or town or combination thereof; and
44.1 	(c) (3) has fewer than four scheduled runs of council bus service during off-peak 
44.2 	hours defined in section 473.408, subdivision 1. 
44.3 	(b) Eligible cities or towns or combinations thereof may apply on behalf of a transit 
44.4 	operator with whom they propose to contract for service.
44.5 	(c) The council may not provide assistance under this section to a statutory or home 
44.6 	rule charter city or town unless the city or town,:
44.7 	(i) (1) was receiving assistance under Minnesota Statutes 1982, section 174.265 by 
44.8 	July 1, 1984,;
44.9 	(ii) (2) had submitted an application for assistance under that section by July 1, 
44.10 	1984,; or
44.11 	(iii) (3) had submitted a letter of intent to apply for assistance under that section by 
44.12 	July 1, 1984, and submits submitted an application for assistance under this section by 
44.13 	July 1, 1988. A statutory or home rule charter city or town has an additional 12-month 
44.14 	extension if it notified the former regional transit board before July 1, 1988, that the city or 
44.15 	town is in the process of completing a transportation evaluation study that includes an 
44.16 	assessment of the local transit needs of the city or town.
44.17 	(d) Nothing in this section prevents a local governmental unit from providing public 
44.18 	transit service that extends outside of the metropolitan transit taxing district.
44.19 	(e) For purposes of this subdivision, "off-peak hours" means the time from 9:00 a.m. 
44.20 	to 3:30 p.m. and 6:30 p.m. until the last bus on Monday through Friday of each week and 
44.21 	all day Saturday, Sunday, and holidays designated by the council.

44.22 	Sec. 68. Laws 2002, chapter 393, section 85, is amended to read:
44.23 	Sec. 85. DAN PATCH COMMUTER RAIL LINE; PROHIBITIONS.
 44.24 		Subdivision 1. Definition. For purposes of this section, "Dan Patch commuter rail 
44.25 	line" means the commuter rail line between Northfield and Minneapolis identified in the 
44.26 	metropolitan council's transit 2020 master plan as the Dan Patch line. 
44.27 		Subd. 2. Metropolitan council; prohibitions. The metropolitan council must not 
44.28 	take any action or spend any money for study, planning, preliminary engineering, final 
44.29 	design, or construction for the Dan Patch commuter rail line. The council must remove 
44.30 	all references, other than references for historical purposes, to the Dan Patch commuter 
44.31 	rail line from any future revisions to the council's transportation development guide and 
44.32 	the council's regional transit master plan.
44.33 		Subd. 3. Commissioner of transportation. The commissioner of transportation 
44.34 	must not expend any money for study, planning, preliminary engineering, final design, 
44.35 	or construction for the Dan Patch commuter rail line. The commissioner must remove 
45.1 	all references, other than references for historical purposes, to the Dan Patch commuter 
45.2 	rail line from any future revisions to the state transportation plan and the commissioner's 
45.3 	commuter rail system plan. 
45.4 		Subd. 4. Regional rail authorities. No regional rail authority may expend any 
45.5 	money for study, planning, preliminary engineering, final design, or construction for 
45.6 	the Dan Patch commuter rail line.

45.7 	Sec. 69. REPORT ON URBAN PARTNERSHIP AGREEMENT.
 45.8 	By January 15, 2009, and on January 15 each year through 2014, the commissioner 
45.9 	of transportation, in conjunction with the Metropolitan Council, shall report to the chairs 
45.10 	and ranking minority members of the legislative committees with jurisdiction over 
45.11 	transportation concerning the status of the state's participation in the urban partnership 
45.12 	agreement. The report must:
45.13 	(1) present the elements of congestion reduction strategies to be implemented under 
45.14 	the urban partnership agreement;
45.15 	(2) summarize average daily traffic and congestion levels on affected roadways;
45.16 	(3) summarize transit usage in affected corridors;
45.17 	(4) identify the costs of participation and the sources of funding secured or to be 
45.18 	secured;
45.19 	(5) include information on revenues and expenditures under the urban partnership 
45.20 	agreement;
45.21 	(6) summarize any user fees collected on marked Interstate Highway 35W 
45.22 	high-occupancy vehicle and dynamic shoulder lanes;
45.23 	(7) recommend any further legislative action necessary for the successful 
45.24 	implementation and operation of the urban partnership agreement; and
45.25 	(8) starting with the January 15, 2011, report and in each report thereafter, evaluate 
45.26 	strategies used within the urban partnership agreement, and develop recommendations for:
45.27 	(i) the Rush Line corridor transit way along marked Interstate Highway 35E and 
45.28 	marked Trunk Highway 35 from downtown St. Paul to Hinckley;
45.29 	(ii) the Red Rock corridor transit way between Minneapolis and Hastings via St. 
45.30 	Paul; and
45.31 	(iii) the marked Interstate Highway 94 corridor from downtown St. Paul to the 
45.32 	Minnesota-Wisconsin border.

45.33 	Sec. 70. CREDIT CARD PAYMENT STUDY; PROPOSAL.
 46.1 	(a) By February 1, 2009, the commissioner of public safety shall submit a proposal 
46.2 	to the chairs and ranking minority members of the senate and house of representatives 
46.3 	committees with jurisdiction over transportation finance. The proposal must identify a 
46.4 	method that allows the Department of Public Safety, its deputy registrars, and driver's 
46.5 	license agents to collect  by credit or debit card, motor vehicle registration taxes under 
46.6 	Minnesota Statutes, section 168.013; motor vehicle certificates of title and related 
46.7 	document fees under Minnesota Statutes, section 168A.29; motor vehicle sales tax under 
46.8 	Minnesota Statutes, sections 297B.02 and 297B.025; and, driver's license and Minnesota 
46.9 	identification card fees under Minnesota Statutes, section 171.06.
46.10 	(b) The proposal must identify the total estimated statewide cost of the processing 
46.11 	fees paid to either a vendor, financial institution, or credit card company. The proposal 
46.12 	must consider options to finance the acceptance fees through either (1) state fee increases 
46.13 	necessary to finance (i) the costs of credit and debit card processing fees paid to a 
46.14 	processing vendor, (ii) the administrative costs of the department to implement the 
46.15 	acceptance of credit and debit cards, including hardware and software costs of the 
46.16 	department, its deputy registrars, and agents, and (iii) associated ongoing administrative 
46.17 	cost increases, or (2) an agreement with a vendor that allows the addition of a convenience 
46.18 	fee to each transaction to be paid directly by customers who choose to utilize credit or 
46.19 	debit cards.
46.20 	(c) The commissioner of public safety, with the assistance of the commissioners of 
46.21 	finance and administration, shall develop a request for proposals from vendors, to be 
46.22 	issued by January 1, 2010, to implement the acceptance of credit and debit payments by 
46.23 	the Department of Public Safety, its deputy registrars, and agents. The department shall 
46.24 	consult deputy registrars and driver's license agents in developing the request for proposals.

46.25 	Sec. 71. ENGINE BRAKES; REGULATION BY MINNEAPOLIS.
 46.26 	Notwithstanding any other law or charter provision, the governing body of the city 
46.27 	of Minneapolis may by ordinance restrict or prohibit the use of an engine brake on motor 
46.28 	vehicles along Legislative Route No. 107, also known as marked Interstate Highway 394, 
46.29 	beginning at the South Penn Avenue interchange in the city of Minneapolis and thence 
46.30 	extending easterly to the terminus of marked Interstate Highway 394. Upon notification 
46.31 	to the commissioner of transportation by the city of Minneapolis, the commissioner of 
46.32 	transportation shall erect the appropriate signs, with the cost of the signs to be paid by the 
46.33 	city. For purposes of this section, "engine brake" means any device that uses the engine 
46.34 	and transmission to impede the forward motion of the motor vehicle by compression 
46.35 	of the engine.

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

47.2 	Sec. 72. ROAD CONSTRUCTION BIDS; CITY ORDINANCE.
 47.3 	Notwithstanding any other law, the commissioner of transportation shall accept the 
47.4 	low bid amount among any cancelled bids for a cooperative road construction project 
47.5 	involving a city of the first class located outside of the metropolitan area, as defined in 
47.6 	Minnesota Statutes, section 473.121, subdivision 2, if:
47.7 	(1) the bid cancellation occurred after July 1, 2007, as a result of a city ordinance 
47.8 	relating to green space setback;
47.9 	(2) the city changes the ordinance before October 1, 2008, in such a manner that a bid 
47.10 	cancellation would not occur were the same bids submitted under the revised ordinance.

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

47.12 	Sec. 73. LITTLE CROW TRANSIT WAY.
 47.13 	The commissioner of transportation and the Metropolitan Council shall reference in 
47.14 	planning or study documents any commuter rail or other transit service proposal along 
47.15 	or near marked Trunk Highway 12 between Willmar and downtown Minneapolis as the 
47.16 	Little Crow transit way.

47.17 	Sec. 74. HIGHWAY CHANGES; REPEALERS; EFFECTIVE DATES; 
47.18 	REVISOR INSTRUCTIONS.
 47.19 		Subdivision 1.Legislative Route No. 295 removed. (a) Minnesota Statutes 2006, 
47.20 	section 161.115, subdivision 226, is repealed effective the day after the commissioner of 
47.21 	transportation receives a copy of the agreement between the commissioner and the city of 
47.22 	St. Peter to transfer jurisdiction of Legislative Route No. 295 to the city of St. Peter and 
47.23 	notifies the revisor of statutes under paragraph (b).
47.24 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from 
47.25 	Minnesota Statutes when the commissioner of transportation sends notice to the revisor in 
47.26 	writing that the conditions required to transfer the route are satisfied.
47.27 		Subd. 2.Legislative Route No. 335 removed. (a) Minnesota Statutes 2006, 
47.28 	section 161.115, subdivision 266, is repealed effective the day after the commissioner of 
47.29 	transportation receives a copy of the agreement between the commissioner and the city of 
47.30 	St. Peter to transfer jurisdiction of Legislative Route No. 335 to the city of St. Peter and 
47.31 	notifies the revisor of statutes under paragraph (b).
48.1 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from 
48.2 	Minnesota Statutes when the commissioner of transportation sends notice to the revisor in 
48.3 	writing that the conditions required to transfer the route are satisfied.

48.4 	Sec. 75. JOEY'S LAW.
 48.5 	The amendment by this act to Minnesota Statutes 2006, section 171.07, subdivision 
48.6 	1, may be cited as "Joey's Law."

48.7 	Sec. 76. RIGHT-OF-WAY TRANSFERRED TO STATE RAIL BANK.
 48.8 	(a) Notwithstanding Minnesota Statutes, section 16B.281, 16B.282, 92.45, or any 
48.9 	other law to the contrary, the trunk highway right-of-way described in paragraph (b) is 
48.10 	hereby transferred to the state rail bank under Minnesota Statutes, section 222.63, being 
48.11 	a certain parcel of land located in the county of Otter Tail, state of Minnesota, being 
48.12 	more particularly described in paragraph (b).
48.13 	(b) All of Tracts A, B, and C described below:
48.14 	TRACT A
48.15 	That part of Government Lot 1 of Section 12, Township 132 North, Range 
48.16 	43 West, Otter Tail County, Minnesota, lying Northeasterly of the former 
48.17 	Southwesterly right-of-way line of the BNSF Railway Company (formerly the 
48.18 	St. Paul, Minneapolis and Manitoba Railway Company);
48.19 	TRACT B
48.20 	A strip of land 150 feet in width, being 75 feet on each side of the former 
48.21 	centerline of the BNSF Railway Company (formerly the St. Paul, Minneapolis 
48.22 	and Manitoba Railway Company) across the SW1/4NW1/4 of Section 12, 
48.23 	Township 132 North, Range 43 West, Otter Tail County, Minnesota, said strip 
48.24 	extending from the South line to the West line of said SW1/4NW1/4; together 
48.25 	with that part of said SW1/4NW1/4 adjoining and Westerly of the above 
48.26 	described strip and Easterly of the Easterly right-of-way line of said railroad 
48.27 	company as located prior to 1888;
48.28 	TRACT C
48.29 	A strip of land 100 feet in width, being 50 feet on each side of the former 
48.30 	centerline of the BNSF Railway Company (formerly the St. Paul, Minneapolis 
48.31 	and Manitoba Railway Company) across the E1/2NE1/4 of Section 11, 
48.32 	Township 132 North, Range 43 West, Otter Tail County, Minnesota, said strip 
48.33 	extending from the East to the North line of said E1/2NE1/4;
49.1 	together with that part of Tract D described below:
49.2 	TRACT D
49.3 	A strip of land 100 feet in width, being 50 feet on each side of the former 
49.4 	centerline of the BNSF Railway Company (formerly the St. Paul, Minneapolis 
49.5 	and Manitoba Railway Company) across the E1/2 of Section 2, Township 132 
49.6 	North, Range 43 West, Otter Tail County, Minnesota;
49.7 	which lies Southeasterly of a line run parallel with and distant 135 feet Southeasterly of 
49.8 	Line 1 described below:
49.9 	LINE 1.
49.10 	Beginning at a point on the North and South Quarter line of said Section 2, 
49.11 	distant 1,060.11 feet North of the South Quarter corner thereof; thence run 
49.12 	Northeasterly at an angle of 72Â°36'15" (measured from North to East) from said 
49.13 	North and South Quarter line for 1,600 feet and there terminating;
49.14 	together with all right of access, being the right of ingress to and egress from that part of 
49.15 	Tract D hereinbefore described, not acquired herein, to the above described strip.

49.16 	Sec. 77. REVISOR'S INSTRUCTION.
 49.17 	The revisor of statutes shall change the terms "type III school bus," "type III bus," and 
49.18 	"type III Head Start bus" to "type III vehicle," and the terms "type III school buses," "type 
49.19 	III buses," and "type III Head Start buses" to "type III vehicles," in Minnesota Statutes, 
49.20 	chapters 169, 169A, and 171, and in Minnesota Rules, parts 7470.1400 and 7470.1500.

49.21 	Sec. 78.  REPEALER.
 49.22 	Minnesota Statutes 2006, sections 168B.087, subdivision 2; and 169.145, are 
49.23 	repealed.

49.24 	ARTICLE 2
49.25 	RAILROAD WALKWAY SAFETY ACT

49.26 	Section 1. [219.372] WALKWAYS BY TRACK; GENERAL REQUIREMENTS; 
49.27 	DEFINITIONS.
49.28 	(a) Walkways may be surfaced with asphalt, concrete, planking, grating, native 
49.29 	material, crushed material, or similar or other nonrevenue material. When crushed 
49.30 	material is used, 100 percent of the material must be capable of passing through a 
49.31 	1-1/2-inch square sieve opening and 90 - 100 percent of the material must be capable 
49.32 	of passing through a one-inch square sieve opening; provided however, a de minimus 
50.1 	variation is not a violation of this paragraph when the rail carrier has made a good faith 
50.2 	effort to comply with the percentage requirements. Smaller crushed material may be used 
50.3 	where drainage and durability issues do not arise. Material that is three-fourths inch or 
50.4 	less must conform with standards set forth by the American Railway Engineering and 
50.5 	Maintenance of Way Association for switching lead tracks.
50.6 	(b) Walkways must have a uniform surface and must be maintained in a safe 
50.7 	condition without compromising track drainage.
50.8 	(c) Cross slopes for walkways must not exceed one inch of elevation for each eight 
50.9 	inches of horizontal length in any direction.
50.10 	(d) Walkways must be a minimum width of two feet.
50.11 	(e) Walkways within the scope of sections 219.372 to 219.378 must be kept free of 
50.12 	spilled oil, sand, posts, rocks, and other hazards or obstructions.

50.13 	Sec. 2. [219.373] NEW YARD TRACKS.
50.14 	(a) Rail carriers shall provide walkways adjacent to those portions of yard tracks 
50.15 	constructed after July 1, 2008, where rail carrier employees frequently work on the ground 
50.16 	performing switching activities.
50.17 	(b) For the purpose of this section, "frequently" means occurring at least five days 
50.18 	per week, one shift per day.

50.19 	Sec. 3. [219.374] OTHER TRACKS.
50.20 	(a) Walkways in the following segments of track must be constructed with materials 
50.21 	set forth in section 219.372 at walkways by main and secondary track switches and 
50.22 	turnouts, walkways by siding track train inspection points, walkways by tracks where 
50.23 	relief train crews frequently board or deboard trains en route, walkways by industry track 
50.24 	turnouts and spotting areas, and walkways by main track within two miles in either 
50.25 	direction of a track-side train detector, with a total walkway not less than 500 feet on 
50.26 	both sides of track.
50.27 	(b) Walkways by switch stands may have a wider apron from base of switch stand 
50.28 	area and must be maintained in a safe condition without compromising track drainage.
50.29 	(c) When the commissioner of transportation finds, after notice and hearing, that rail 
50.30 	carrier employees who frequently work adjacent to a portion of track performing switching 
50.31 	activities are exposed to safety hazards due to the lack of a walkway or to the condition of 
50.32 	a walkway constructed before July 1, 2008, the commissioner shall order the rail carrier 
50.33 	to construct a walkway adjacent to a portion of track where employees are performing 
51.1 	switching activities, or require a rail carrier to modify an existing walkway in conformance 
51.2 	with the standards set forth in section 219.373 within a reasonable period of time.
51.3 	(d) For purposes of this section, "frequently" means at least five days per week, one 
51.4 	shift per day, or any other period deemed "frequently" by the commissioner to warrant 
51.5 	an order pursuant to this section.

51.6 	Sec. 4. [219.375] EXCEPTIONS TO COMPLIANCE.
51.7 	Rail carriers are excused from complying with sections 219.372 to 219.378 during 
51.8 	maintenance activities or any period of heavy rain or snow, derailments, rock and earth 
51.9 	slides, washouts, and similar weather or seismic conditions, and during a reasonable 
51.10 	period afterwards to allow a return to compliance.

51.11 	Sec. 5. [219.376] WAIVERS.
51.12 	A rail carrier may petition the commissioner of transportation for a waiver of any 
51.13 	provision of sections 219.372 to 219.378 pursuant to section 218.041 or other applicable 
51.14 	statute.

51.15 	Sec. 6. [219.377] COMPLAINTS; ENFORCEMENT.
51.16 	(a) A formal complaint of an alleged violation of sections 219.372 to 219.378 may 
51.17 	not be filed until the filing party has attempted to address the alleged violations with the 
51.18 	rail carrier. Any complaint of an alleged violation of sections 219.372 to 219.378 must 
51.19 	contain a written statement that the filing party has made a reasonable, good faith attempt 
51.20 	to address the alleged violation with the rail carrier.
51.21 	(b) All formal complaints filed with the commissioner of transportation must be 
51.22 	resolved pursuant to procedures set forth in section 218.041 or other applicable statute.

51.23 	Sec. 7. [219.378] WALKWAY EXEMPTIONS.
51.24 	(a) Sections 219.372, paragraphs (a), (c), and (d); 219.373; and 219.374, paragraphs 
51.25 	(a) and (b), do not apply to track placed in revenue service before the effective date of 
51.26 	this section until the date and time track and supporting structure are repaired, replaced, 
51.27 	resurfaced, or as otherwise ordered by the commissioner of transportation pursuant to 
51.28 	section 219.374 to eliminate an unsafe or hazardous condition.
51.29 	(b) A small business that owns or operates any track in this state is exempt from 
51.30 	sections 219.372, paragraphs (a), (c), and (d); 219.373; 219.374, paragraphs (a) and (b); 
51.31 	219.375; and 219.376. On determining after notice and hearing that exempting a small 
51.32 	business that owns or operates any track in this state pursuant to paragraph (a) poses 
52.1 	an unreasonable threat or substantial harm to the public safety, the commissioner of 
52.2 	transportation shall order that business to eliminate any unsafe walkway condition.
52.3 	(c) As used in this section, "small business" either has the meaning given in section 
52.4 	645.445 or is a class three carrier as classified by the Federal Railroad Administration.

52.5 	Sec. 8. SHORT TITLE.
 52.6 	Sections 1 to 7 may be cited as the "Railroad Walkway Safety Act."

52.7 	Sec. 9. EFFECTIVE DATE.
 52.8 	This article is effective July 1, 2008.

52.9 	ARTICLE 3
52.10 	CHAPTER 152 CHANGES

52.11 	Section 1. Minnesota Statutes 2006, section 161.081, subdivision 3, as amended by 
52.12 	Laws 2008, chapter 152, article 6, section 4, is amended to read:
52.13 		Subd. 3. Flexible highway account; turnback other accounts. (a) The flexible 
52.14 	highway account is created in the state treasury. Money in The account commissioner
52.15 	shall be used:
52.16 	(1) annually transfer in fiscal years 2009 and year 2010, 100 percent of the excess 
52.17 	sum, as calculated in paragraph (i), and in fiscal years 2011 and thereafter, 50 percent of 
52.18 	the excess sum, as calculated in paragraph (i), for counties in the metropolitan area, as 
52.19 	defined in section 473.121, subdivision 4, but for the purposes of the calculation cities of 
52.20 	the first class will be excluded in the metropolitan area; and to the metropolitan routes 
52.21 	of regional significance account under subdivision 4; and
52.22 	(2) of expend the amount available in the flexible highway account less the amount, 
52.23 	after the transfer under clause (1), as determined by the commissioner under this section
52.24 	subdivision, for:
52.25 	(i) restoration of former trunk highways that have reverted to counties or to statutory 
52.26 	or home rule charter cities, or for trunk highways that will be restored and subsequently 
52.27 	turned back by agreement between the commissioner and the local road authority;
52.28 	(ii) safety improvements on county highways, municipal highways, streets, or town 
52.29 	roads; and
52.30 	(iii) statewide routes of regional significance.
52.31 	(b) For purposes of this subdivision, "restoration" means the level of effort required 
52.32 	to improve the route that will be turned back to an acceptable condition as determined 
53.1 	by agreement made between the commissioner and the county or city before the route 
53.2 	is turned back.
53.3 	(c) The commissioner shall review the need for funds to restore highways that have 
53.4 	been or will be turned back. The commissioner shall determine, on a biennial basis, the 
53.5 	percentage of funds in the flexible highway account to be distributed to each district, 
53.6 	and within each district the percentage to be used for each of the purposes specified in 
53.7 	paragraph (a), clause (2). Money in the account may be used for safety improvements 
53.8 	and routes of regional significance only after money is set aside to restore the identified 
53.9 	turnbacks. The commissioner shall make these determinations only after meeting and 
53.10 	holding discussions with committees selected by the statewide associations of both county 
53.11 	commissioners and municipal officials. The commissioner shall, to the extent feasible, 
53.12 	annually allocate 50 percent of the funds in the flexible highway account under paragraph 
53.13 	(a), clause (2), to the department's metropolitan district, and 50 percent to districts in 
53.14 	greater Minnesota.
53.15 	(d) Money that will be used for the restoration of trunk highways that have reverted 
53.16 	or that will revert to cities must be deposited in the municipal turnback account, which is 
53.17 	created in the state treasury.
53.18 	(e) Money that will be used for the restoration of trunk highways that have reverted 
53.19 	or that will revert to counties must be deposited in the county turnback account, which is 
53.20 	created in the state treasury.
53.21 	(f) Money that will be used for safety improvements must be deposited in the 
53.22 	highway safety improvement account, which is created in the state treasury to be used 
53.23 	as grants to statutory or home rule charter cities, towns, and counties to assist in paying 
53.24 	the costs of constructing or reconstructing city streets, county highways, or town roads 
53.25 	to reduce crashes, deaths, injuries, and property damage.
53.26 	(g) Money that will be used for statewide routes of regional significance must be 
53.27 	deposited in the statewide routes of regional significance account, which is created in 
53.28 	the state treasury, and used as grants to statutory or home rule charter cities, towns, and 
53.29 	counties to assist in paying the costs of constructing or reconstructing city streets, county 
53.30 	highways, or town roads with statewide or regional significance that have not been fully 
53.31 	funded through other state, federal, or local funding sources.
53.32 	(h) As part of each biennial budget submission to the legislature, the commissioner 
53.33 	shall describe how the money in the flexible highway account will be apportioned among 
53.34 	the county turnback account, the municipal turnback account, the trunk highway fund for 
53.35 	routes turned back to local governments by agreement, the highway safety improvement 
53.36 	account, and the statewide routes of regional significance account.
54.1 	(i) The excess sum is calculated as the sum of revenue within the flexible highway 
54.2 	account:
54.3 	(1) attributed to that portion of the gasoline excise tax rate under section 296A.07, 
54.4 	subdivision 3, in excess of 20 cents per gallon, and to that portion of the excise tax rates 
54.5 	in excess of the energy equivalent of a gasoline excise tax rate of 20 cents per gallon 
54.6 	for E85 and M85 under section 296A.07, subdivision 3, and special fuel under section 
54.7 	296A.08, subdivision 2;
54.8 	(2) attributed to a change in the passenger vehicle registration tax under section 
54.9 	168.013, imposed on or after July 1, 2008, that exceeds (i) the amount collected in fiscal 
54.10 	year 2008, multiplied by (ii) the annual average United States Consumer Price Index for 
54.11 	the calendar year previous to the current calendar year, divided by the annual average 
54.12 	United States Consumer Price Index for calendar year 2007; and
54.13 	(3) attributed to that portion of the motor vehicle sales tax revenue in excess of the 
54.14 	percentage allocated to the flexible highway account in fiscal year 2007.
54.15 	(j) For purposes of this subdivision, the United States Consumer Price Index 
54.16 	identified in paragraph (i), clause (2), is for all urban consumers, United States city 
54.17 	average, as determined by the United States Department of Labor.

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

54.19 	Sec. 2. Minnesota Statutes 2006, section 161.081, is amended by adding a subdivision 
54.20 	to read:
54.21 		Subd. 4.Metropolitan routes of regional significance account. (a) For purposes 
54.22 	of this subdivision, the following terms have the meanings given them:
54.23 	(1) "metropolitan area" has the meaning given in section 473.121, subdivision 4; and
54.24 	(2) "population" has the meaning given in section 477A.011, subdivision 3, except 
54.25 	that it excludes the three most populous cities in the metropolitan area.
54.26 	(b) The metropolitan routes of regional significance account is created in the state 
54.27 	treasury. Funds in the account are for allocation to metropolitan counties to assist in 
54.28 	paying the costs of construction, reconstruction, or maintenance of county highways with 
54.29 	statewide or regional significance that have not been fully funded through other state, 
54.30 	federal, or local funding sources.
54.31 	(c) The commissioner shall allocate funds in the account to counties in the 
54.32 	metropolitan area so that each county receives an amount proportional to the percentage 
54.33 	that its population, estimated or established by July 15 of the year prior to the current 
54.34 	calendar year, bears to the total population of the counties receiving funds under this 
54.35 	subdivision.

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

55.2 	Sec. 3. Minnesota Statutes 2006, section 161.081, is amended by adding a subdivision 
55.3 	to read:
55.4 		Subd. 5.Excess sum. (a) For purposes of this section, "excess sum" means an 
55.5 	amount calculated by the commissioner as the sum of revenue within the flexible highway 
55.6 	account:
55.7 	(1) attributed to that portion of the gasoline excise tax rate under section 296A.07, 
55.8 	subdivision 3, in excess of 20 cents per gallon, and to that portion of the excise tax rates 
55.9 	in excess of the energy equivalent of a gasoline excise tax rate of 20 cents per gallon 
55.10 	for E85 and M85 under section 296A.07, subdivision 3, and special fuel under section 
55.11 	296A.08, subdivision 2; 
55.12 	(2) attributed to a change in the passenger vehicle registration tax under section 
55.13 	168.013, imposed on or after July 1, 2008, that exceeds (i) the amount collected in fiscal 
55.14 	year 2008, multiplied by (ii) the annual average United States Consumer Price Index for 
55.15 	the calendar year previous to the current calendar year, divided by the annual average 
55.16 	United States Consumer Price Index for calendar year 2007; and 
55.17 	(3) attributed to that portion of the motor vehicle sales tax revenue in excess of the 
55.18 	percentage allocated to the flexible highway account in fiscal year 2007. 
55.19 	(b) For purposes of this subdivision, the United States Consumer Price Index 
55.20 	identified in paragraph (a), clause (2), is for all urban consumers, United States city 
55.21 	average, as determined by the United States Department of Labor.

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

55.23 	Sec. 4. Laws 2008, chapter 152, article 2, section 1, is amended to read:
55.24 	Section 1. [296A.083] DEBT SERVICE SURCHARGE. 
55.25 		Subdivision 1. Definitions. For purposes of this section, the following terms have 
55.26 	the meanings given them: 
55.27 	(1) "debt service" means the amount of principal and interest in each fiscal year 
55.28 	attributable to the trunk highway bonds authorized in this article; and 
55.29 	(2) "surcharge" means the rate imposed under this section on gasoline taxed under 
55.30 	section 296A.07, subdivision 3, clause (3), and includes a proportional rate for each type 
55.31 	of fuel taxed under sections 296A.07, subdivision 3, clauses (1) and (2), and 296A.08, 
55.32 	subdivision 2. 
55.33 		Subd. 2. Debt service forecast. On June 30, 2008, and each March 1 thereafter, the 
55.34 	commissioner of finance shall report to the commissioner of revenue on trunk highway 
56.1 	debt service. The report must include the annual amount of revenue from the surcharge 
56.2 	previously deposited in the trunk highway fund, and a forecast of the total and annual 
56.3 	amounts necessary to pay the remaining debt service. 
56.4 		Subd. 3. Surcharge rate. (a) By July 16, 2008, and each April 1 thereafter, the 
56.5 	commissioner of revenue shall calculate and publish a surcharge as provided in paragraphs 
56.6 	(b) and (c). The surcharge is imposed from August 1, 2008, through June 30, 2009, and 
56.7 	each new surcharge thereafter is imposed the following July 1 through June 30. 
56.8 	(b) For fiscal years 2009 through 2012, the commissioner shall set the surcharge as 
56.9 	specified in the following surcharge rate schedule. 

56.10	Surcharge Rate Schedule 
		
56.11
56.12	Fiscal Year 
	Rate (in cents 
per gallon) 
		
56.13	2009 
	0.5 
		
56.14	2010 
	2.1 
		
56.15	2011 
	2.5 
		
56.16	2012 
	3.0 
		
56.17 	(c) For fiscal year 2013 and thereafter, the commissioner shall set the surcharge at 
56.18 	the lesser of (1) 3.5 cents, or (2) an amount calculated so that the total proceeds from the 
56.19 	surcharge deposited in the trunk highway fund from fiscal year 2009 to the upcoming 
56.20 	fiscal year equals the total amount of debt service from fiscal years 2009 to 2039, and the 
56.21 	surcharge is rounded to the nearest 0.1 cent. 
56.22 		Subd. 4.Surcharge administration. The audit, assessment, appeal, collection, 
56.23 	enforcement, penalty, interest, refund, and administrative provisions that apply to the taxes 
56.24 	in this chapter apply to the surcharge imposed by this section.

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

56.26 	Sec. 5. Laws 2008, chapter 152, article 2, section 3, subdivision 2, is amended to read:

56.27	Subd. 2. State Road Construction
 				1,717,694,000 
	
56.28 	(a) For the actual construction, 
56.29 	reconstruction, and improvement of 
56.30 	trunk highways, including design-build 
56.31 	contracts and consultant usage to support 
56.32 	these activities. This includes the cost 
56.33 	of actual payments to landowners for 
56.34 	lands acquired for highway rights-of-way, 
56.35 	payments to lessees, interest subsidies, and 
57.1 	relocation expenses. This appropriation is in 
57.2 	the following amounts: 
57.3 	(1) $417,694,000 in fiscal year 2009, and the 
57.4 	commissioner may use up to $71,008,000 of 
57.5 	this amount for program delivery; 
57.6 	(2) $500,000,000 in fiscal year 2010, and the 
57.7 	commissioner may use up to $85,000,000 of 
57.8 	this amount for program delivery; and
57.9 	(3) $100,000,000 in each fiscal year for 
57.10 	fiscal years 2011 through 2018, and the 
57.11 	commissioner may use up to $17,000,000 of 
57.12 	the amount in each fiscal year for program 
57.13 	delivery.
57.14 	(b) Of the amount in fiscal year 2009, 
57.15 	$40,000,000 is for construction of 
57.16 	interchanges and intersections involving 
57.17 	a trunk highway, where the interchange
57.18 	or intersection will promote economic 
57.19 	development, increase employment, relieve 
57.20 	growing traffic congestion, and promote 
57.21 	traffic safety. The amount under this 
57.22 	paragraph must be allocated 50 percent to 
57.23 	the department's metropolitan district, and 50 
57.24 	percent to districts in greater Minnesota.
57.25 	(c) Of the amount in fiscal years 2009 
57.26 	and 2010, the commissioner shall use 
57.27 	$300,000,000 each year for predesign, 
57.28 	design, preliminary engineering, 
57.29 	right-of-way acquisition, reasonable 
57.30 	approaches, construction, reconstruction, 
57.31 	and maintenance of bridges in the trunk 
57.32 	highway bridge improvement program under 
57.33 	Minnesota Statutes, section 165.14.
57.34 	(d) Of the total appropriation under this 
57.35 	subdivision, the commissioner shall use at 
58.1 	least $50,000,000 for accelerating transit 
58.2 	facility improvements on or adjacent to trunk 
58.3 	highways.
58.4 	(e) Of the total appropriation under this 
58.5 	subdivision provided to the Department 
58.6 	of Transportation's district 7, excluding 
58.7 	the amount allocated to district 7 under 
58.8 	paragraph (c), the commissioner shall first 
58.9 	expend funds as necessary to accelerate all 
58.10 	projects that (1) are on a trunk highway 
58.11 	classified as a medium priority interregional 
58.12 	corridor, (2) are included in the district's 
58.13 	long-range transportation plan, but are 
58.14 	not included in the state transportation 
58.15 	improvement program or the ten-year 
58.16 	highway work plan, and (3) expand capacity 
58.17 	from a two-lane highway to a freeway 
58.18 	or expressway, as defined in Minnesota 
58.19 	Statutes, section 160.02, subdivision 19. The 
58.20 	commissioner shall establish as the highest 
58.21 	priority under this paragraph any project that 
58.22 	currently has a final environmental impact 
58.23 	statement completed. The requirement 
58.24 	under this paragraph does not change the 
58.25 	department's funding allocation process 
58.26 	or the amount otherwise allocated to each 
58.27 	transportation district.
58.28 	(f) Notwithstanding Minnesota Statutes, 
58.29 	section 16A.642, the appropriation under this 
58.30 	subdivision does not expire and may not be 
58.31 	canceled.

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

58.33 	Sec. 6. Laws 2008, chapter 152, article 3, section 1, the effective date, is amended to 
58.34 	read:

59.1 	EFFECTIVE DATE. This section is effective the day following final enactment, 
59.2 	and applies to any annual additional tax for a registration period that starts on or after 
59.3 	September 1, 2008, through August 31, 2009.

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

59.5 	Sec. 7. Laws 2008, chapter 152, article 3, section 6, is amended to read:
59.6 	Sec. 6. SPECIAL FUEL EXCISE TAX; TRANSITION PROVISION.
 59.7 	Notwithstanding Minnesota Statutes, section 296A.08, subdivision 2, before October 
59.8 	1, 2008, the special fuel excise tax is imposed at the following rates: 
59.9 	(a) Liquefied petroleum gas or propane is taxed at the rate of 16.5 cents per gallon. 
59.10 	(b) Liquefied natural gas is taxed at the rate of 13.2 cents per gallon. 
59.11 	(c) Compressed natural gas is taxed at the rate of $1.1913$1.913 per thousand 
59.12 	cubic feet; or 22 cents per gasoline equivalent. For purposes of this paragraph, "gasoline 
59.13 	equivalent," as defined by the National Conference on Weights and Measures, is 5.66
59.14 	pounds of gas. 
59.15 	(d) All other special fuel is taxed at the same rate as the gasoline excise tax as 
59.16 	specified in section 4. The tax is payable in the form and manner prescribed by the 
59.17 	commissioner. 

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

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

59.23 	Sec. 8. Laws 2008, chapter 152, article 3, section 8, is amended to read:
59.24 	Sec. 8. Minnesota Statutes 2006, section 297A.815, is amended by adding a 
59.25 	subdivision to read: 
59.26 		Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this 
59.27 	subdivision, "net revenue" means an amount equal to: 
59.28 	(1) the revenues, including interest and penalties, collected under section 297A.815, 
59.29 	during the fiscal year; less 
59.30 	(2) the estimated reduction in individual income tax receipts and the estimated 
59.31 	amount of refunds paid out under section 290.06, subdivision 34, for the fiscal year. 
60.1 	(b) On or before June 30 of each fiscal year, the commissioner of revenue shall 
60.2 	estimate the amount of the revenues and subtraction under paragraph (a) for the current 
60.3 	fiscal year. 
60.4 	(c) On or after July 1 of the subsequent fiscal year, the commissioner of finance shall 
60.5 	transfer the net revenue as estimated in paragraph (b) from the general fund, as follows: 
60.6 	(1) 50 percent to the greater Minnesota transit account; and 
60.7 	(2) 50 percent to the county state-aid highway fund. Notwithstanding any other law 
60.8 	to the contrary, the commissioner of transportation shall allocate the funds transferred 
60.9 	under this clause to the counties in the metropolitan area, as defined in section 473.121, 
60.10 	subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall 
60.11 	receive of such amount the percentage that its population, as defined in section 477A.011, 
60.12 	subdivision 3, estimated or established by July 15 of the year prior to the current calendar 
60.13 	year, bears to the total population of the counties receiving funds under this clause
60.14 	metropolitan routes of regional significance account under section 161.081, subdivision 4. 
60.15 	(d) For fiscal years 2010 and 2011, the amount under paragraph (a), clause (1), must 
60.16 	be calculated using the following percentages of the total revenues: 
60.17 	(1) for fiscal year 2010, 83.75 percent; and 
60.18 	(2) for fiscal year 2011, 93.75 percent. 

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

60.20 	Sec. 9. Laws 2008, chapter 152, article 6, section 7, is amended to read:
60.21 	Sec. 7. [398A.10] TRANSIT FUNDING. 
60.22 		Subdivision 1. Capital costs. A county regional railroad authority may not 
60.23 	contribute more than ten percent of the capital costs of a light rail transit or commuter rail 
60.24 	project. This subdivision does not apply to a light rail transit project for which a county 
60.25 	regional railroad authority commits to providing an amount greater than ten percent of 
60.26 	the capital costs, if the commitment (1) is made before October 2, 2008, (2) is made as 
60.27 	part of an application for federal funds, and (3) is adjusted by the county regional railroad 
60.28 	authority to meet the requirements of this subdivision as part of the next scheduled federal 
60.29 	funding application for the project.
60.30 		Subd. 2. Operating and maintenance costs. A county regional railroad authority 
60.31 	may not contribute any funds to pay the operating and maintenance costs for a light rail 
60.32 	transit or commuter rail project. If a county regional railroad authority is contributing 
60.33 	funds for operating and maintenance costs on a light rail transit or commuter rail project 
60.34 	on the date of the enactment of this act, the authority may continue to contribute funds 
60.35 	for these purposes until January 1, 2009. 
61.1 		Subd. 3. Application. This section only applies if a county has imposed the 
61.2 	metropolitan transportation sales and use tax under section 297A.992. 

61.3 	EFFECTIVE DATE. This section is effective the day after the metropolitan 
61.4 	transportation area sales tax is imposed under Minnesota Statutes, section 297A.992, 
61.5 	subdivision 2. This section is effective July 1, 2008.

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

61.7 	ARTICLE 4
61.8 	HOUSEHOLD GOODS MOTOR CARRIERS

61.9 	Section 1. Minnesota Statutes 2006, section 221.011, subdivision 23, is amended to 
61.10 	read:
61.11 		Subd. 23.Household goods. "Household goods" means personal effects and 
61.12 	property used or to be used by the owner in the owner's in a dwelling when the effects 
61.13 	and property are a part of the equipment or supply of the  dwelling; furniture, fixtures, 
61.14 	equipment and property of business places and institutions, public or private, when a part 
61.15 	of the stock, equipment, supplies or property of such establishments.

61.16 	Sec. 2. Minnesota Statutes 2006, section 221.011, is amended by adding a subdivision 
61.17 	to read:
61.18 		Subd. 23a.Household goods motor carrier. (a) "Household goods motor carrier" 
61.19 	means, in general, a motor carrier that, in the ordinary course of its business of providing 
61.20 	transportation of household goods within the state of Minnesota, offers some or all of 
61.21 	the following additional services:
61.22 	(1) binding and nonbinding estimates;
61.23 	(2) inventorying;
61.24 	(3) protective packing and unpacking of individual items at personal dwellings; or
61.25 	(4) loading and unloading at personal dwellings.
61.26 	(b) A household goods motor carrier does not include any motor carrier providing 
61.27 	transportation of household goods in containers or trailers that are entirely loaded and 
61.28 	unloaded by an individual other than an employee or agent of the motor carrier.

61.29 	Sec. 3. [221.0253] HOUSEHOLD GOODS MOTOR CARRIERS; 
61.30 	REGISTRATION.
62.1 		Subdivision 1.Registration required. No person may operate as a household 
62.2 	goods motor carrier unless the person has been issued a certificate of registration by 
62.3 	the commissioner.
62.4 		Subd. 2.Registration statement. A person who wishes to operate as a household 
62.5 	goods motor carrier shall file a complete and accurate registration statement with the 
62.6 	commissioner. A registration statement must be on a form provided by the commissioner 
62.7 	and include:
62.8 	(1) the registrant's name, including an assumed or fictitious name used by the 
62.9 	registrant in doing business;
62.10 	(2) the registrant's mailing address and business telephone number;
62.11 	(3) the registrant's United States Department of Transportation number;
62.12 	(4) the name, title, and telephone number of the individual who is principally 
62.13 	responsible for the operation of the registrant's transportation business;
62.14 	(5) the principal location from which the registrant conducts its transportation 
62.15 	business and where the records required by this chapter will be kept;
62.16 	(6) if different from clause (5), the location in Minnesota where the records required 
62.17 	by this chapter will be available for inspection and copying by the commissioner;
62.18 	(7) whether the registrant's business is a corporation, partnership, limited liability 
62.19 	partnership, limited liability company, sole proprietorship, or other legal form;
62.20 	(8) if the registrant is a foreign corporation authorized to transact business in 
62.21 	Minnesota, the state of incorporation and the name and address of its registered agent; and
62.22 	(9) the summary of the registrant's arbitration program, described in Code of Federal 
62.23 	Regulations, title 49, section 375.211, paragraph (b), as required under section 221.0255.
62.24 		Subd. 3.Signature required. A registration statement must be signed by a corporate 
62.25 	officer, general partner, limited liability company board member, or sole proprietor.
62.26 		Subd. 4.Registration fee. An initial fee of $200 must be paid at the time the 
62.27 	registration statement is filed with the commissioner. The commissioner shall deposit all 
62.28 	revenues received under this subdivision in the trunk highway fund.
62.29 		Subd. 5.Certificate of registration; issuance. (a) The commissioner shall issue 
62.30 	a certificate of registration to a registrant who does not have an unsatisfactory safety 
62.31 	rating with the state or United States Department of Transportation and who has met 
62.32 	the requirements of this section.
62.33 	(b) A certificate of registration must be numbered and bear an effective date.
62.34 	(c) A certificate of registration must be kept at the registrant's principal place of 
62.35 	business.
63.1 		Subd. 6.Duration. A certificate of registration is not assignable or transferable, and 
63.2 	is valid until it is suspended, revoked, or canceled.
63.3 		Subd. 7.Obligation to keep information current. A registrant shall notify the 
63.4 	commissioner in writing within 30 days of any change in the information required under 
63.5 	subdivision 2.
63.6 		Subd. 8.Suspension and cancellation of registration. (a) The commissioner shall 
63.7 	suspend or cancel the registration of a household goods motor carrier who fails to file with 
63.8 	the commissioner or maintain the insurance or bond required under section 221.141.
63.9 	(b) The commissioner shall immediately suspend the registration of a household 
63.10 	goods motor carrier who receives an unsatisfactory safety rating. Within 30 days of 
63.11 	receiving a written request from the household goods motor carrier, the commissioner 
63.12 	shall conduct one follow-up compliance audit to determine if the safety rating of the motor 
63.13 	carrier should be changed, or if the suspension should be rescinded. The commissioner 
63.14 	may conduct additional compliance reviews.
63.15 	(c) The commissioner may suspend or cancel the registration of a household goods 
63.16 	motor carrier who fails to maintain an arbitration program or comply with a binding 
63.17 	arbitration decision under section 221.0255, subdivision 1.
63.18 	(d) The commissioner shall follow the procedures under section 221.185 for any 
63.19 	suspension or cancellation under this subdivision.
63.20 	(e) A person may not operate as a household goods motor carrier while the person's 
63.21 	registration is suspended or canceled.

63.22 	Sec. 4. [221.0255] HOUSEHOLD GOODS MOTOR CARRIERS; CONSUMER 
63.23 	PROTECTION.
63.24 		Subdivision 1.Incorporation of federal regulations. (a) Code of Federal 
63.25 	Regulations, title 49, section 375.103, is incorporated by reference, except that "household 
63.26 	goods" and "household goods motor carrier" have the meanings given in section 221.011. 
63.27 	Code of Federal Regulations, title 49, sections 375.209, 375.211, 375.401, 375.403, 
63.28 	375.405, 375.407, 375.501, 375.503, 375.505, 375.603, and 375.703, are incorporated 
63.29 	by reference and apply to household goods motor carriers. Cross-references within the 
63.30 	incorporated sections to other sections or paragraphs not incorporated in this subdivision 
63.31 	are not incorporated by reference.
63.32 	(b) Sections 572.08 to 572.30 apply to the arbitration program required under Code 
63.33 	of Federal Regulations, title 49, section 375.211.
63.34 	(c) For an original estimate provided under Code of Federal Regulations, title 49, 
63.35 	sections 375.401, paragraph (a); 375.403, paragraph (a)(1); and 375.405, paragraph (b)(1), 
64.1 	a household goods motor carrier may provide an original binding or nonbinding estimate 
64.2 	to the shipper without a physical survey, if the estimate is based on (1) services to be 
64.3 	provided and (2) the anticipated number of hours and number of employees required. 
64.4 	(d) For a revised estimate provided under Code of Federal Regulations, title 49, 
64.5 	sections 375.403, paragraph (a)(6) and 375.405, paragraph (b)(7), a household goods 
64.6 	motor carrier may provide a revised binding or nonbinding estimate to the shipper based 
64.7 	on revised services to be provided and the revised anticipated number of hours and 
64.8 	number of employees required.
64.9 	(e) A household goods motor carrier's total charges to the shipper under paragraphs 
64.10 	(c) and (d) must meet the requirements under this subdivision.
64.11 		Subd. 2.Impracticable operations. (a) For purposes of this subdivision, 
64.12 	"impracticable operations" means additional services required by a household goods 
64.13 	motor carrier (1) when operating conditions and reasonably unforeseen events make 
64.14 	it physically impossible for the carrier to perform pickup or delivery with the carrier's 
64.15 	normally assigned road-haul equipment, (2) when the use of smaller equipment or 
64.16 	additional labor to complete pickup or delivery of a shipment is required, or (3) when 
64.17 	additional hours of service are required because of reasonably unpredictable changes in 
64.18 	weather or road conditions.
64.19 	(b) A household goods motor carrier may require payment of additional charges up 
64.20 	to 15 percent above a binding or nonbinding estimate for impracticable operations. The 
64.21 	specific services or unforeseeable conditions considered to be impracticable operations 
64.22 	by the carrier must be defined in writing in the carrier's binding or nonbinding estimate 
64.23 	provided to the consumer. A household goods motor carrier is not required to file the 
64.24 	contractual definitions of "impracticable operations" with the commissioner.
64.25 		Subd. 3.Cause of action. A person who is injured by a household goods motor 
64.26 	carrier due to a violation under subdivision 1, and who is unable to obtain relief due to the 
64.27 	failure of the motor carrier to maintain an arbitration program or comply with a binding 
64.28 	arbitration decision under subdivision 1, has a cause of action against the household goods 
64.29 	motor carrier. Damages may be awarded to the consumer for economic loss, including 
64.30 	damage, destruction, and loss of use of personal property, and reasonable attorney fees.
64.31 		Subd. 4.Advertising. A household goods motor carrier must include in all 
64.32 	advertisements for all services the following elements:
64.33 	(1) the name or trade name of the household goods motor carrier, as it appears on 
64.34 	the certificate of registration issued by the commissioner under section 221.0253, or the 
64.35 	name or trade name of the motor carrier under whose operating authority the advertised 
64.36 	service will originate; and
65.1 	(2) the United States Department of Transportation number of the household goods 
65.2 	motor carrier.

65.3 	Sec. 5. HOUSEHOLD GOODS MOTOR CARRIERS; EXPIRATION AND 
65.4 	CONVERSION OF PERMITS.
 65.5 		Subdivision 1.Expiration of permits. Any permit issued by the commissioner 
65.6 	before August 1, 2008, that authorizes for-hire transportation of household goods in 
65.7 	Minnesota is valid through December 31, 2008.
65.8 		Subd. 2.Conversion to registration. A holder of a permit that expires under 
65.9 	subdivision 1 who wishes to continue as a household goods motor carrier shall meet the 
65.10 	requirements of section 221.0253 before January 1, 2009. Prior to January 1, 2009, the 
65.11 	commissioner shall not charge the registration fee under section 221.0253, subdivision 
65.12 	4, for a permit holder to obtain a registration certificate.

65.13 	ARTICLE 5
65.14 	REPEAL OF OBSOLETE PERMITS AND CONFORMING CHANGES

65.15 	Section 1. Minnesota Statutes 2006, section 168.013, subdivision 1e, is amended to 
65.16 	read:
65.17 		Subd. 1e.Truck; tractor; combination; exceptions. (a) On trucks and tractors 
65.18 	except those in this chapter defined as farm trucks, on truck-tractor and semitrailer 
65.19 	combinations except those defined as farm combinations, and on commercial zone 
65.20 	vehicles, the tax based on total gross weight shall be graduated according to the Minnesota 
65.21 	base rate schedule prescribed in this subdivision, but in no event less than $120.
65.22 	Minnesota Base Rate Schedule
65.23 	Scheduled taxes include five percent
65.24 	surtax provided for in subdivision 14

65.25		TOTAL GROSS WEIGHT
			
65.26		IN POUNDS
		TAX
	
65.27		A
	0
	-
	1,500
		$ ........15 
	
65.28		B
	1,501
	-
	3,000
		20
	
65.29		C
	3,001
	-
	4,500
		25
	
65.30		D
	4,501
	-
	6,000
		35
	
65.31		E
	6,001
	-
	9,000
		45
	
65.32		F
	9,001
	-
	12,000
		70
	
65.33		G
	12,001
	-
	15,000
		105
	
65.34		H
	15,001
	-
	18,000
		145
	
65.35		I
	18,001
	-
	21,000
		190
	
66.1		J
	21,001
	-
	26,000
		270
	
66.2		K
	26,001
	-
	33,000
		360
	
66.3		L
	33,001
	-
	39,000
		475
	
66.4		M
	39,001
	-
	45,000
		595
	
66.5		N
	45,001
	-
	51,000
		715
	
66.6		O
	51,001
	-
	57,000
		865
	
66.7		P
	57,001
	-
	63,000
		1015
	
66.8		Q
	63,001
	-
	69,000
		1185
	
66.9		R
	69,001
	-
	73,280
		1325
	
66.10		S
	73,281
	-
	78,000
		1595
	
66.11		T
	78,001
	-
	81,000
		1760
	
66.12 	(b) For purposes of the Minnesota base rate schedule, for vehicles with six or more 
66.13 	axles in the "S" and "T" categories, the base rates are $1,520 and $1,620 respectively.
66.14 	(c) For each vehicle with a gross weight in excess of 81,000 pounds an additional 
66.15 	tax of $50 is imposed for each ton or fraction thereof in excess of 81,000 pounds, subject 
66.16 	to subdivision 12.
66.17 	(d) Truck-tractors except those herein defined as farm and commercial zone vehicles 
66.18 	shall be taxed in accord with the foregoing gross weight tax schedule on the basis of the 
66.19 	combined gross weight of the truck-tractor and any semitrailer or semitrailers which the 
66.20 	applicant proposes to combine with the truck-tractor.
66.21 	(e) Commercial zone trucks include only trucks, truck-tractors, and semitrailer 
66.22 	combinations which are:
66.23 	(1) used by an authorized local cartage carrier operating under a permit issued 
66.24 	under section  221.296 and whose gross transportation revenue consists of at least 60 
66.25 	percent obtained solely from local cartage carriage, and are operated solely within an area 
66.26 	composed of two contiguous cities of the first class and municipalities contiguous thereto 
66.27 	as defined by section  221.011, subdivision 17; or 
66.28 	(2) operated by an interstate carrier registered under section  221.60, or by an 
66.29 	authorized local cartage carrier or other carrier receiving operating authority under chapter 
66.30 	221, and operated solely within a zone exempt from regulation pursuant to United States 
66.31 	Code, title 49, section 13506. 
66.32 	(f) The license plates issued for commercial zone vehicles shall be plainly marked. 
66.33 	A person operating a commercial zone vehicle outside the zone or area in which its 
66.34 	operation is authorized is guilty of a misdemeanor and, in addition to the penalty therefor, 
66.35 	shall have the registration of the vehicle as a commercial zone vehicle revoked by the 
66.36 	registrar and shall be required to reregister the vehicle at 100 percent of the full annual tax 
66.37 	prescribed in the Minnesota base rate schedule, and no part of this tax shall be refunded 
66.38 	during the balance of the registration year.
67.1 	(g) On commercial zone trucks the tax shall be based on the total gross weight of the 
67.2 	vehicle and during each of the first eight years of vehicle life shall be 75 percent of the 
67.3 	Minnesota base rate schedule. During the ninth and succeeding years of vehicle life the 
67.4 	tax shall be 50 percent of the Minnesota base rate schedule.
67.5 	(h) On trucks, truck-tractors and semitrailer combinations, except those defined 
67.6 	as farm trucks and farm combinations, and except for those commercial zone vehicles 
67.7 	specifically provided for in this subdivision, the tax for each of the first eight years of 
67.8 	vehicle life shall be 100 percent of the tax imposed in the Minnesota base rate schedule, 
67.9 	and during the ninth and succeeding years of vehicle life, the tax shall be 75 percent of the 
67.10 	Minnesota base rate prescribed by this subdivision.
67.11 	(i) For the purpose of registration, trailers coupled with a truck-tractor, semitrailer 
67.12 	combination are semitrailers.

67.13 	Sec. 2. Minnesota Statutes 2006, section 174.64, subdivision 2, is amended to read:
67.14 		Subd. 2.Specific functions and powers. (a) To the extent allowed under federal 
67.15 	law or regulation, the commissioner shall further hold hearings and issue orders in cases 
67.16 	brought on the commissioner's own motion or by a third party in the following areas:
67.17 	(1) adequacy of services that carriers are providing to the public, including the 
67.18 	continuation, termination, or modification of services and facilities;
67.19 	(2) reasonableness of tariffs of rates, fares, and charges, or a part or classification 
67.20 	of a tariff; and
67.21 	(3) issuing permits.
67.22 	(b) For purposes of paragraph (a), clause (2), the commissioner may authorize 
67.23 	common carriers by rail and motor carriers for hire to file tariffs of rates, fares, and 
67.24 	charges individually or by group. Carriers participating in group ratemaking have the free 
67.25 	and unrestrained right to take independent action either before or after a determination 
67.26 	arrived at through that procedure.

67.27 	Sec. 3. Minnesota Statutes 2006, section 174.64, subdivision 4, is amended to read:
67.28 		Subd. 4.Petition, notice, and hearing. (a) With respect to those matters within 
67.29 	the commissioner's jurisdiction, the commissioner shall receive, hear, and determine all 
67.30 	petitions filed with the commissioner in accordance with the procedures established by law 
67.31 	and may hold hearings and make determinations upon the commissioner's own motion to 
67.32 	the same extent, and in every instance, in which the commissioner may do so upon petition.
67.33 	(b) Upon receiving a petition filed pursuant to section 221.121, subdivision 1, or 
67.34 	221.151, the commissioner shall give notice of the filing of the petition to representatives 
68.1 	of associations or other interested groups or persons who have registered their names 
68.2 	with the commissioner for that purpose and to whomever the commissioner deems to be 
68.3 	interested in the petition. The commissioner may grant or deny the request of the petition 
68.4 	30 days after notice of the filing has been fully given. 
68.5 	(c) If the commissioner receives a written objection and notice of intent to appear at 
68.6 	a hearing to object to the petition from any person within 20 days of the notice having been 
68.7 	fully given, the request of the petition must be granted or denied only after a contested 
68.8 	case hearing has been conducted on the petition, unless the objection is withdrawn before 
68.9 	the hearing. The commissioner may elect to hold a contested case hearing if no objections 
68.10 	to the petition are received. If a timely objection is not received, or if received and 
68.11 	withdrawn, and the request of the petition is denied without hearing, the petitioner may 
68.12 	request within 30 days of receiving the notice of denial, and must be granted, a contested 
68.13 	case hearing on the petition.

68.14 	Sec. 4. Minnesota Statutes 2006, section 174.66, is amended to read:
68.15 	174.66 CONTINUATION OF CARRIER RULES.
68.16 	(a) Orders and directives in force, issued, or promulgated under authority of chapters 
68.17 	174A, 216A, 218, 219, 221, and 222 remain and continue in force and effect until repealed, 
68.18 	modified, or superseded by duly authorized orders or directives of the commissioner of 
68.19 	transportation. To the extent allowed under federal law or regulation, rules adopted under 
68.20 	authority of the following sections are transferred to the commissioner of transportation 
68.21 	and continue in force and effect until repealed, modified, or superseded by duly authorized 
68.22 	rules of the commissioner:
68.23 	(1) section 218.041 except rules related to the form and manner of filing railroad 
68.24 	rates, railroad accounting rules, and safety rules; 
68.25 	(2) section 219.40; and
68.26 	(3) rules relating to rates or tariffs, or the granting, limiting, or modifying of permits 
68.27 	or certificates of convenience and necessity under section 221.031, subdivision 1;.
68.28 	(4) rules relating to the sale, assignment, pledge, or other transfer of a stock interest 
68.29 	in a corporation holding authority to operate as a permit carrier as prescribed in section 
68.30 	221.151, subdivision 1; 
68.31 	(5) rules relating to rates, charges, and practices under section 221.161, subdivision 
68.32 	4; and 
68.33 	(6) rules relating to rates, tariffs, or the granting, limiting, or modifying of permits 
68.34 	under sections 221.121 and 221.151.
69.1 	(b) The commissioner shall review the transferred rules, orders, and directives and, 
69.2 	when appropriate, develop and adopt new rules, orders, or directives.

69.3 	Sec. 5. Minnesota Statutes 2006, section 221.011, subdivision 8, is amended to read:
69.4 		Subd. 8.Permit. "Permit" means the license, or franchise, which may be issued to 
69.5 	motor carriers other than regular route common carriers of passengers, class I common 
69.6 	carriers, and petroleum carriers, and household goods motor carriers under the provisions 
69.7 	of this chapter, authorizing the use of the highways of Minnesota for transportation for hire.

69.8 	Sec. 6. Minnesota Statutes 2006, section 221.025, is amended to read:
69.9 	221.025 EXEMPTIONS.
69.10 	The provisions of this chapter requiring a certificate or permit to operate as a motor 
69.11 	carrier do not apply to the intrastate transportation described below:
69.12 	(1) the transportation of students to or from school or school activities in a school 
69.13 	bus inspected and certified under section 169.451 and the transportation of children or 
69.14 	parents to or from a Head Start facility or Head Start activity in a Head Start bus inspected 
69.15 	and certified under section 169.451; 
69.16 	(2) the transportation of solid waste, as defined in section 116.06, subdivision 22, 
69.17 	including recyclable materials and waste tires, except that the term "hazardous waste" has 
69.18 	the meaning given it in section 221.011, subdivision 31; 
69.19 	(3) a commuter van as defined in section 221.011, subdivision 27; 
69.20 	(4) authorized emergency vehicles as defined in section 169.01, subdivision 5, 
69.21 	including ambulances; and tow trucks equipped with proper and legal warning devices 
69.22 	when picking up and transporting (i) disabled or wrecked motor vehicles or (ii) vehicles 
69.23 	towed or transported under a towing order issued by a public employee authorized to 
69.24 	issue a towing order; 
69.25 	(5) the transportation of grain samples under conditions prescribed by the 
69.26 	commissioner;
69.27 	(6) the delivery of agricultural lime;
69.28 	(7) the transportation of dirt and sod within an area having a 50-mile radius from the 
69.29 	home post office of the person performing the transportation;
69.30 	(8) the transportation of sand, gravel, bituminous asphalt mix, concrete ready mix, 
69.31 	concrete blocks or tile and the mortar mix to be used with the concrete blocks or tile, or 
69.32 	crushed rock to or from the point of loading or a place of gathering within an area having a 
69.33 	50-mile radius from that person's home post office or a 50-mile radius from the site of 
69.34 	construction or maintenance of public roads and streets;
70.1 	(9) the transportation of pulpwood, cordwood, mining timber, poles, posts, decorator 
70.2 	evergreens, wood chips, sawdust, shavings, and bark from the place where the products 
70.3 	are produced to the point where they are to be used or shipped;
70.4 	(10) the transportation of fresh vegetables from farms to canneries or viner stations, 
70.5 	from viner stations to canneries, or from canneries to canneries during the harvesting, 
70.6 	canning, or packing season, or transporting sugar beets, wild rice, or rutabagas from the 
70.7 	field of production to the first place of delivery or unloading, including a processing 
70.8 	plant, warehouse, or railroad siding;
70.9 	(11) the transportation of property or freight, other than household goods and 
70.10 	petroleum products in bulk, entirely within the corporate limits of a city or between 
70.11 	contiguous cities except as provided in section 221.296; 
70.12 	(12) the transportation of unprocessed dairy products in bulk within an area having a 
70.13 	100-mile radius from the home post office of the person providing the transportation;
70.14 	(13) the transportation of agricultural, horticultural, dairy, livestock, or other farm 
70.15 	products within an area having a 100-mile radius from the person's home post office and 
70.16 	the carrier may transport other commodities within the 100-mile radius if the destination 
70.17 	of each haul is a farm;
70.18 	(14) the transportation of newspapers, as defined in section 331A.01, subdivision 
70.19 	5, telephone books, handbills, circulars, or pamphlets in a vehicle with a gross vehicle 
70.20 	weight of 10,000 pounds or less; and 
70.21 	(15) the transportation of potatoes from the field of production, or a storage site 
70.22 	owned or otherwise controlled by the producer, to the first place of processing.
70.23 	The exemptions provided in this section apply to a person only while the person is 
70.24 	exclusively engaged in exempt transportation.

70.25 	Sec. 7. Minnesota Statutes 2006, section 221.026, is amended to read:
70.26 	221.026 MOTOR CARRIER OF PROPERTY; EXEMPTIONS.
70.27 		Subdivision 1.Registration. No person may engage in the for-hire transportation 
70.28 	of property, other than household goods, in Minnesota unless the person has filed a 
70.29 	registration statement with the commissioner on a form the commissioner prescribes.
70.30 		Subd. 2.Exemptions from requirements. Notwithstanding any other law, a motor 
70.31 	carrier of property is exempt from sections 221.021; 221.072; 221.121; 221.122; 221.123;
70.32 	221.131; 221.132; 221.151; 221.161;221.172, subdivisions 3 to 8; and 221.185, except as 
70.33 	provided in subdivision 4; and 221.296. The exemptions in this subdivision do not apply 
70.34 	to a motor carrier of property while transporting household goods. 
71.1 		Subd. 3.Safety regulations. A motor carrier of property is subject to those federal 
71.2 	regulations incorporated by reference in section 221.0314, unless exempted from those 
71.3 	regulations by section 221.031. 
71.4 		Subd. 4.Suspension and cancellation of registration. The commissioner 
71.5 	shall suspend or cancel, following the procedures for suspension or cancellation in 
71.6 	section 221.185, the registration of a motor carrier of property who fails to file with the 
71.7 	commissioner or maintain the insurance or bond required under section 221.141. A person 
71.8 	may not engage in the for-hire transportation of property, other than household goods,
71.9 	in Minnesota while the person's registration is under suspension or cancellation under 
71.10 	this subdivision. 
71.11 		Subd. 5.Local regulation. Section 221.091 applies to registration statements 
71.12 	under this section to the same extent that it applies to certificates and permits issued by 
71.13 	the board commissioner. 

71.14 	Sec. 8. Minnesota Statutes 2006, section 221.031, subdivision 1, is amended to read:
71.15 		Subdivision 1.Powers, duties, reports, limitations. (a) This subdivision applies to 
71.16 	motor carriers engaged in intrastate commerce.
71.17 	(b) The commissioner shall prescribe rules for the operation of motor carriers, 
71.18 	including their facilities; accounts; leasing of vehicles and drivers; service; safe operation 
71.19 	of vehicles; equipment, parts, and accessories; hours of service of drivers; driver 
71.20 	qualifications; accident reporting; identification of vehicles; installation of safety devices; 
71.21 	inspection, repair, and maintenance; and proper automatic speed regulators if, in the 
71.22 	opinion of the commissioner, there is a need for the rules.
71.23 	(c) The commissioner shall direct the repair and reconstruction or replacement of 
71.24 	an inadequate or unsafe motor carrier vehicle or facility. The commissioner may require 
71.25 	the construction and maintenance or furnishing of suitable and proper freight terminals, 
71.26 	passenger depots, waiting rooms, and accommodations or shelters in a city in this state or 
71.27 	at a point on the highway traversed whichthat the commissioner, after investigation by the 
71.28 	department, may deem deems just and proper for the protection of passengers or property.
71.29 	(d) The commissioner shall require holders of household goods mover permits to file 
71.30 	annual and other reports including annual accounts of motor carriers, schedules of rates 
71.31 	and charges, or other data by motor carriers, regulate motor carriers in matters affecting 
71.32 	the relationship between them and the traveling and shipping public, and prescribe other 
71.33 	rules as may be necessary to carry out the provisions of this chapter.
71.34 	(e) A motor carrier subject to paragraph (d) but having gross revenues from for-hire 
71.35 	transportation in a calendar year of less than $200,000 may, at the discretion of the 
72.1 	commissioner, be exempted from the filing of an annual report, if instead the motor carrier 
72.2 	files an abbreviated annual report, in a form as may be prescribed by the commissioner, 
72.3 	attesting that the motor carrier's gross revenues did not exceed $200,000 in the previous 
72.4 	calendar year. Motor carrier gross revenues from for-hire transportation, for the purposes 
72.5 	of this subdivision only, do not include gross revenues received from the operation of 
72.6 	school buses as defined in section 169.01, subdivision 6. 
72.7 	(f) The commissioner shall enforce sections 169.781 to 169.783. 

72.8 	Sec. 9. Minnesota Statutes 2006, section 221.036, subdivision 1, is amended to read:
72.9 		Subdivision 1.Order. The commissioner may issue an order requiring violations 
72.10 	to be corrected and administratively assessing monetary penalties for a violation of (1) 
72.11 	section 221.021; (2) section 221.0255; (3) section 221.033, subdivision 2b; (3) section 
72.12 	221.151; (4) section 221.171; (5) (4) section 221.141; or (6) (5) rules of the commissioner 
72.13 	relating to the transportation of hazardous waste, motor carrier operations, or insurance, or 
72.14 	tariffs and accounting. An order must be issued as provided in this section. 

72.15 	Sec. 10. Minnesota Statutes 2006, section 221.036, subdivision 3, is amended to read:
72.16 		Subd. 3.Amount of penalty; considerations. (a) The commissioner may issue an 
72.17 	order assessing a penalty of up to $5,000 for all violations of section 221.021; 221.141; 
72.18 	221.151; or 221.171, or rules of the commissioner relating to motor carrier operations, 
72.19 	insurance, or tariffs and accounting,identified under subdivision 1, except for rules of the 
72.20 	commissioner relating to the transportation of hazardous waste or as otherwise provided 
72.21 	under paragraph (b), identified during a single inspection, audit, or investigation. 
72.22 	(b) The commissioner may issue an order assessing a penalty up to a maximum of 
72.23 	$10,000 for all violations of section 221.033, subdivision 2b, identified during a single 
72.24 	inspection or audit. 
72.25 	(c) In determining the amount of a penalty, the commissioner shall consider:
72.26 	(1) the willfulness of the violation;
72.27 	(2) the gravity of the violation, including damage to humans, animals, air, water, 
72.28 	land, or other natural resources of the state;
72.29 	(3) the history of past violations, including the similarity of the most recent violation 
72.30 	and the violation to be penalized, the time elapsed since the last violation, the number of 
72.31 	previous violations, and the response of the person to the most recent violation identified;
72.32 	(4) the economic benefit gained by the person by allowing or committing the 
72.33 	violation; and
73.1 	(5) other factors as justice may require, if the commissioner specifically identifies 
73.2 	the additional factors in the commissioner's order.
73.3 	(d) The commissioner shall assess a penalty of not less than $1,000 against a driver 
73.4 	who is convicted of a violation of an out-of-service order. The commissioner shall assess 
73.5 	a penalty of not more than $10,000 against an employer who knowingly allows or requires 
73.6 	an employee to operate a commercial motor vehicle in violation of an out-of-service order.

73.7 	Sec. 11. Minnesota Statutes 2006, section 221.131, is amended to read:
73.8 	221.131 CARRIER ANNUAL VEHICLE REGISTRATION; FEES, 
73.9 	IDENTIFICATION CARD FOR MOTOR CARRIERS OF PASSENGERS.
73.10 		Subdivision 1.Permit Registration renewal. Permits Certificates of registration
73.11 	issued under section 221.121 to a motor carrier of passengers under section 221.0252
73.12 	are effective for a 12-month period. A permit certificate of registration holder must
73.13 	shall renew the permit certificate annually by registration of the vehicles operated under 
73.14 	authority of that permit as required by subdivision 2 certificate. A permit certificate holder 
73.15 	has one annual renewal date encompassing all of the permits certificates held by the holder. 
73.16 		Subd. 2.Annual vehicle registration; fee. (a) This subdivision applies only to 
73.17 	holders of household goods mover permits and motor carriers of passengers.
73.18 	(b) A permit holder or motor carrier of passengers shall pay an annual registration 
73.19 	fee of $75 on each vehicle, including pickup and delivery vehicles, operated by the carrier 
73.20 	under authority of the permit or certificate of registration during the 12-month period or 
73.21 	fraction of the 12-month period. Trailers and semitrailers used by a permit certificate
73.22 	holder in combination with power units may not be counted as vehicles in the computation 
73.23 	of fees under this section if the permit holder pays the fees for power units.
73.24 	(c) (b) The commissioner shall furnish a distinguishing annual identification card for 
73.25 	each vehicle or power unit for which a fee has been paid. The identification card must 
73.26 	at all times be carried in the vehicle or power unit to which it has been assigned. An 
73.27 	identification card may be reassigned to another vehicle or power unit upon application 
73.28 	of the carrier and payment of a transfer fee of $10. An identification card issued under 
73.29 	this section is valid only for the period for which the permit or certificate of registration is 
73.30 	effective.
73.31 	(d) (c) A fee of $10 is charged for the replacement of an unexpired identification 
73.32 	card that has been lost.
73.33 	(e) (d) The proceeds of the fees collected under this subdivision must be deposited in 
73.34 	the trunk highway fund.
74.1 		Subd. 2a.Vehicle identification. The permit holder must be identified on the 
74.2 	power unit of each registered vehicle operated under the permit. Vehicles must show the 
74.3 	name or the "doing business as" name of the permit holder operating the vehicle and 
74.4 	the community and abbreviation of the state in which the permit holder maintains its 
74.5 	principal office or in which the vehicle is customarily based. If the permit holder operates 
74.6 	a leased vehicle, it may show its name and the name of the lessor on the vehicle, if the 
74.7 	lease relationship is clearly shown. If the name of a person other than the operating permit 
74.8 	holder appears on the vehicle, the words "operated by" must immediately precede the 
74.9 	name of the permit holder. The name and address must be in letters that contrast sharply in 
74.10 	color with the background, be readily legible during daylight hours from a distance of 50 
74.11 	feet while the vehicle is stationary, and be maintained in a manner that retains the legibility 
74.12 	of the markings. The name and address may be shown by use of a removable device if that 
74.13 	device meets the identification and legibility requirements of this subdivision.
74.14 		Subd. 3.Certificate carrier; annual vehicle registration. Certificated passenger 
74.15 	carriers shall pay an annual registration fee of $40 for each vehicle, including pickup 
74.16 	and delivery vehicles, operated during a calendar year. The commissioner shall issue 
74.17 	distinguishing identification cards as provided in subdivision 2.
74.18 		Subd. 4.Floater card; fee. The department may issue to carriers subject to 
74.19 	subdivision 2 or 3 special "floater" identification cards up to a maximum of five per motor 
74.20 	carrier. Floater cards may be freely transferred between vehicles that have evidence of 
74.21 	being inspected under section 221.0252, subdivision 3, paragraph (a), clause (2), within 
74.22 	the previous 12 months, or have a current Commercial Vehicle Safety Alliance decal, and 
74.23 	that are used under short-term leases by the motor carrier. The motor carrier shall pay a 
74.24 	fee of $100 for each floater card issued. 
74.25 		Subd. 5.Limitation. The provisions of this section are limited by applicable 
74.26 	federal law.

74.27 	Sec. 12. Minnesota Statutes 2006, section 221.132, is amended to read:
74.28 	221.132 PREPAID TEMPORARY VEHICLE IDENTIFICATION CARD.
74.29 	For special or extraordinary events, the commissioner may issue a prepaid 
74.30 	temporary vehicle identification card to a permit or certificate holder subject to section 
74.31 	221.131, subdivision 2or 3, for a fee of $5 per card. The card must be preprinted by the 
74.32 	commissioner with the carrier's name, address, and permit or certificate number. The card 
74.33 	may be used by the motor carrier to whom it is issued to identify a vehicle temporarily 
74.34 	added to its fleet, if the vehicle has evidence of being inspected under section 221.0252, 
74.35 	subdivision 3, paragraph (a), clause (2), within the previous 12 months, or has a current 
75.1 	Commercial Vehicle Safety Alliance decal. The card must be executed by the motor carrier 
75.2 	by dating and signing the card and describing the vehicle in which it will be carried. The 
75.3 	identification card is valid for a period of ten days from the date the motor carrier places 
75.4 	on the card when the card is executed. The card must be used within one year from the 
75.5 	date of issuance by the commissioner. The card may not be used if the permit or certificate 
75.6 	is not in full force and effect. The card may not be transferred. The commissioner may not 
75.7 	refund the cost of unused prepaid temporary vehicle identification cards. 

75.8 	Sec. 13. Minnesota Statutes 2006, section 221.141, subdivision 4, is amended to read:
75.9 		Subd. 4.Household goods mover motor carrier. A household goods mover motor 
75.10 	carrier shall maintain in effect cargo insurance or cargo bond in the amount of $50,000 
75.11 	and shall file with the commissioner a cargo certificate of insurance or cargo bond. A 
75.12 	cargo certificate of insurance must conform to Form H, Uniform Motor Cargo Certificate 
75.13 	of Insurance, described in Code of Federal Regulations, title 49, part 1023. A cargo bond 
75.14 	must conform to Form J, described in Code of Federal Regulations, title 49, part 1023. 
75.15 	Both Form H and Form J are incorporated by reference. The cargo certificate of insurance 
75.16 	or cargo bond must be issued in the full and correct name of the person, corporation, or 
75.17 	partnership to whom the household goods mover permit certificate of registration was 
75.18 	issued and whose operations are being insured.

75.19 	Sec. 14. Minnesota Statutes 2006, section 221.185, is amended to read:
75.20 	221.185 OPERATING AUTHORITY; SUSPENSION, CANCELLATION.
75.21 		Subdivision 1.Grounds Order for suspension. Despite the provisions of section 
75.22 	221.021, a household goods mover permit or a motor carrier certificate of  registration 
75.23 	issued under section 221.0251or,221.0252, or 221.0253 is suspended without a hearing, 
75.24 	by order of the commissioner, if the permit certificate holder or carrier fails to:
75.25 	(1) maintain and file with the commissioner, the insurance or bond required by 
75.26 	section 221.141 and rules adopted under that section or the carrier or permit holder fails to; 
75.27 	(2) pay annual vehicle registration fees or renew permits as required by section 
75.28 	221.131, or the permit holder or carrier fails to; or
75.29 	(3) pay an administrative penalty under section 221.036. 
75.30 		Subd. 2.Notice of suspension. (a) Failure to file and maintain insurance, renew 
75.31 	permits under section 221.131, or to pay annual vehicle registration fees or renew 
75.32 	permits under section 221.131or 221.296, or to maintain in good standing a protective 
75.33 	agent's or private detective's license required under section 221.121, subdivision 6g, or 
75.34 	221.153, subdivision 3, suspends a motor carrier's permit or certificate two days after the 
76.1 	commissioner sends notice of the suspension by certified mail, return receipt requested, to 
76.2 	the last known address of the motor carrier. 
76.3 	(b) In order to avoid permanent cancellation of the permit or certificate, the motor 
76.4 	carrier must do one of the following within 45 days from the date of suspension:
76.5 	(1) comply with the law by filing insurance or bond, renewing permits, or paying 
76.6 	vehicle registration fees; or
76.7 	(2) request a hearing before the commissioner regarding the failure to comply 
76.8 	with the law.
76.9 		Subd. 2a.Notice of suspension; effective date. The commissioner shall issue a 
76.10 	notice of suspension if one of the conditions described in subdivision 1 occurs. The notice 
76.11 	must give the reason for suspension and must be sent to the last known address of the 
76.12 	carrier by certified mail, return receipt requested. A suspension is effective two days 
76.13 	after a notice is mailed.
76.14 		Subd. 3.Suspension rescission. If the motor carrier complies with the requirements 
76.15 	of this chapter within 45 days after the date of suspension and pays the required fees, 
76.16 	including a late vehicle registration fee of $5 for each vehicle registered, the commissioner 
76.17 	shall rescind the suspension unless the carrier's registration has expired. If a registered 
76.18 	carrier fails to comply within one year of the effective date of a suspension, the carrier's 
76.19 	registration is canceled.
76.20 		Subd. 3a.Hearing. If the motor carrier requests a hearing within 45 days after the 
76.21 	date of suspension, the commissioner shall review the suspension and:
76.22 	(1) determine that the carrier has complied with the law and rescind the suspension;
76.23 	(2) for just cause, grant an extension which must not exceed 20 days; or
76.24 	(3) schedule a hearing to ascertain whether the carrier has failed to comply with the 
76.25 	law. If it is determined after the hearing that the carrier has failed to comply with the law, 
76.26 	the commissioner shall cancel the carrier's suspended permit or certificate.
76.27 		Subd. 4.Grounds for cancellation. Except as provided in subdivision 5a, failure to 
76.28 	comply with the requirements of sections section221.141and 221.296 relating to bonds 
76.29 	and insurance, 221.131 relating to permit renewal,221.131or 221.296 relating to annual 
76.30 	vehicle registration or permit renewal, 221.121, subdivision 6g, or 221.153, subdivision 3, 
76.31 	relating to protective agent or private detective licensure, or to request a hearing within 45 
76.32 	days of the date of suspension, is deemed an abandonment of the motor carrier's permit or
76.33 	certificate and the permit or certificate must be canceled by the commissioner. 
76.34 		Subd. 5.Notice of cancellation. The commissioner shall notify the motor carrier by 
76.35 	certified mail, return receipt requested, that the permit or certificate is canceled effective 
76.36 	on the date of mailing the notice of cancellation.
77.1 		Subd. 5a.Reinstatement after cancellation. A motor carrier whose permit or 
77.2 	certificate is canceled for failure to comply with sections section221.141and 221.296
77.3 	relating to bonds and insurance may ask the commissioner to review the cancellation. 
77.4 	Upon review, the commissioner shall rescind the cancellation if (1) the motor carrier 
77.5 	presents evidence showing that before the effective date of the notice of cancellation 
77.6 	issued under subdivision 5, the motor carrier had obtained and paid for the insurance 
77.7 	required by sections section221.141and 221.296, and the rules of the commissioner, and 
77.8 	(2) the commissioner is satisfied that the motor carrier has complied with the requirements 
77.9 	of sections section221.141and 221.296 and the rules of the commissioner. 
77.10 		Subd. 9.New petition. If the holder of a canceled permit or certificate seeks 
77.11 	authority to operate as a motor carrier it, the holder shall file a petition with the 
77.12 	commissioner for a permit or certificate as provided in section 221.121 or 221.296, 
77.13 	whichever is applicable. 

77.14 	Sec. 15. Minnesota Statutes 2006, section 221.221, subdivision 3, is amended to read:
77.15 		Subd. 3.Delegated powers. Representatives of the department to whom authority 
77.16 	has been delegated by the commissioner for the purpose of enforcing sections 169.781 to 
77.17 	169.783and 221.171 and the rules, orders, or directives of the commissioner adopted or 
77.18 	issued under those sections, and for no other purpose, shall have the powers conferred 
77.19 	by law upon police officers. The representatives of the department have the power to 
77.20 	inspect records, logs, freight bills, bills of lading, or other documents, which may provide 
77.21 	evidence to determine compliance with sections 169.781 to 169.783and 221.171. 

77.22 	Sec. 16. Minnesota Statutes 2006, section 221.291, subdivision 4, is amended to read:
77.23 		Subd. 4.Operating without registration or permit. A person who operates a 
77.24 	motor carrier without first registering under section 221.0251or,221.0252, or who 
77.25 	operates as a household goods mover without having obtained the necessary permit,
77.26 	221.0253 is guilty of a misdemeanor, and upon conviction shallmust be fined not less than 
77.27 	the maximum fine whichthat may be imposed for a misdemeanor for each violation. 

77.28 	Sec. 17. REVISION OF RULES.
 77.29 	The commissioner of transportation shall repeal, amend, and adopt revisions to rules 
77.30 	relating to household goods contained in Minnesota Rules, chapters 7800 and 7805, and 
77.31 	may use the expedited process for adopting rules under Minnesota Statutes, section 14.389. 

77.32 	Sec. 18. INSTRUCTION TO REVISOR.
 78.1 	The revisor of statutes shall change the phrase "sections 221.011 to 221.296" to 
78.2 	read "this chapter" where found in Minnesota Statutes, sections 221.021, subdivision 
78.3 	1; 221.022; and 221.091, subdivision 1.

78.4 	Sec. 19.  REPEALER.
 78.5 	Minnesota Statutes 2006, sections 174.65; 221.011, subdivisions 24, 25, 28, 29, 
78.6 	38, 39, 41, 44, and 45; 221.0252, subdivision 7; 221.072; 221.111; 221.121; 221.122; 
78.7 	221.123; 221.131, subdivisions 2a and 3; 221.141, subdivision 6; 221.151; 221.152; 
78.8 	221.153, subdivisions 1 and 2; 221.161; 221.171; 221.172, subdivisions 3, 4, 5, 6, 7, and 
78.9 	8; and 221.296, subdivisions 3, 4, 5, 6, 7, and 8, are repealed.