1.1 	A bill for an act
1.2 	relating to transportation; modifying or adding provisions relating to highways, 
1.3 	motor vehicles, vehicle registration, fuel tax agreement fees, traffic regulations 
1.4 	and surcharges, vehicle parking ordinances, commercial vehicles and vehicle 
1.5 	combinations and permits, design-build construction, pupil transportation and 
1.6 	school bus drivers, drivers' licenses, driver training, motor fuels, the State Patrol, 
1.7 	transit and paratransit planning, urban partnership agreement implementation, 
1.8 	the transfer of right-of-way to state rail bank, nonmotorized transportation, 
1.9 	transportation finance, and other transportation-related programs or practices; 
1.10 	repealing surcharge for special veteran license plates; requiring studies and 
1.11 	reports; imposing penalties; appropriating money; amending Minnesota Statutes 
1.12 	2006, sections 13.72, subdivision 11; 160.02, by adding a subdivision; 161.081, 
1.13 	subdivision 3, as amended, by adding subdivisions; 161.3420, subdivisions 2, 3, 
1.14 	4; 161.3422; 161.3426, subdivisions 1, 3, 4; 162.02, by adding a subdivision; 
1.15 	163.051, subdivision 1; 168.011, subdivisions 7, 22; 168.012, subdivision 1, by 
1.16 	adding a subdivision; 168.013, by adding a subdivision; 168.021, subdivisions 
1.17 	1, 2; 168.09, subdivision 7; 168.123, subdivision 2; 168.185; 168.28; 168A.01, 
1.18 	subdivision 21; 168A.03, subdivision 1; 168A.05, subdivision 9; 168B.051, 
1.19 	subdivision 2; 168B.06, subdivisions 1, 3; 168B.07, by adding a subdivision; 
1.20 	168B.08, subdivision 1; 168B.087, subdivision 1; 168D.06; 168D.07; 169.01, 
1.21 	subdivisions 6, 31, 55, 76, by adding subdivisions; 169.18, subdivision 5; 
1.22 	169.21, by adding a subdivision; 169.224; 169.306; 169.346, subdivision 5; 
1.23 	169.435; 169.446, subdivision 2; 169.67, subdivision 3; 169.685, subdivisions 5, 
1.24 	6; 169.686, subdivisions 1, 2, by adding a subdivision; 169.781, subdivisions 
1.25 	1, 2; 169.79; 169.801; 169.82, subdivision 3; 169.826, subdivision 1a; 
1.26 	169.85, subdivision 1; 169.86, by adding a subdivision; 169.87, by adding a 
1.27 	subdivision; 169.99, by adding a subdivision; 169A.03, subdivision 23; 171.01, 
1.28 	subdivision 35; 171.02, by adding a subdivision; 171.03; 171.05, subdivision 
1.29 	2b; 171.055, subdivision 2; 171.13, subdivision 1, by adding a subdivision; 
1.30 	171.165, subdivision 2; 171.18, subdivision 1; 171.24, by adding a subdivision; 
1.31 	171.29, subdivision 1; 171.321, subdivision 5; 174.02, subdivision 2; 174.03, 
1.32 	subdivision 1; 174.24, by adding a subdivision; 221.011, by adding a subdivision; 
1.33 	221.031, subdivision 1; 221.036, subdivisions 1, 3; 221.121, subdivisions 1, 
1.34 	6a; 221.151, subdivision 1; 221.221, subdivision 2; 239.791, subdivision 10, 
1.35 	by adding a subdivision; 299A.705, subdivision 1; 299D.03, subdivision 1; 
1.36 	299D.06; 325F.6641, subdivisions 1, 2; 357.021, subdivisions 6, 7; 465.74, by 
1.37 	adding a subdivision; 473.13, subdivision 1a; 473.388, subdivision 2; 473.446, 
1.38 	subdivisions 2, 8; Minnesota Statutes 2007 Supplement, sections 169.443, 
1.39 	subdivision 9; 171.02, subdivisions 2, 2a; Laws 1976, chapter 199, section 
2.1 	14, subdivision 1, as amended; Laws 2002, chapter 393, section 85; Laws 
2.2 	2008, chapter 152, article 1, section 6; article 2, sections 1; 3, subdivision 2; 
2.3 	article 3, sections 1; 8; article 4, section 2, subdivision 1; article 6, section 7; 
2.4 	proposing coding for new law in Minnesota Statutes, chapters 160; 168; 169; 
2.5 	171; 174; repealing Minnesota Statutes 2006, sections 161.3426, subdivision 2; 
2.6 	168.123, subdivision 2a; 169.145; 169.446, subdivision 3; 221.121, subdivision 
2.7 	4; 473.4461.
2.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.9 	ARTICLE 1
2.10 	TRANSPORTATION POLICY

2.11 	Section 1. Minnesota Statutes 2006, section 13.72, subdivision 11, is amended to read:
2.12 		Subd. 11.Design-build transportation project. When the Department of 
2.13 	Transportation undertakes a design-build transportation project as defined in section 
2.14 	161.3410, subdivision 6, the statement of qualification evaluation criteria and scoring 
2.15 	methodology, statement of qualification evaluations, technical proposal evaluation criteria 
2.16 	and scoring methodology, and technical proposal evaluations, and audio recordings of 
2.17 	meetings with proposers are classified as protected nonpublic data with regard to data not 
2.18 	on individuals and as confidential data on individuals. The statement of qualification 
2.19 	evaluation criteria and scoring methodology and statement of qualification evaluations 
2.20 	are public when the Department of Transportation announces the short list of qualified 
2.21 	contractors. The technical proposal evaluation criteria, scoring methodology, and
2.22 	technical proposal evaluations, and audio recordings of meetings with proposers  are 
2.23 	public when the project is awarded.

2.24 	Sec. 2. Minnesota Statutes 2006, section 160.02, is amended by adding a subdivision 
2.25 	to read:
2.26 		Subd. 30.Dynamic shoulder lane. "Dynamic shoulder lane" means the shoulder 
2.27 	of a freeway on which the commissioner may allow the operation of vehicles during 
2.28 	certain periods.

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

2.30 	Sec. 3. [160.94] USER FEES; URBAN PARTNERSHIP AGREEMENT.
2.31 		Subdivision 1.Exception. The provisions of section 160.93 do not apply to this 
2.32 	section.
2.33 		Subd. 2.Fees authorized. To improve efficiency and provide more options to 
2.34 	individuals traveling in a trunk highway corridor, the commissioner of transportation 
2.35 	may charge user fees to owners or operators of: (1) single-occupant vehicles using 
3.1 	dynamic shoulder lanes as designated by the commissioner; and (2) any designated 
3.2 	high-occupancy vehicle lanes within the I-35W corridor. The fees may be collected using 
3.3 	electronic or other toll-collection methods and may vary in amount with the time of day 
3.4 	and level of traffic congestion within the corridor. The commissioner shall consult with 
3.5 	the Metropolitan Council and obtain necessary federal authorizations before implementing 
3.6 	user fees on a high-occupancy vehicle lane or dynamic shoulder lane. Fees under this 
3.7 	section are not subject to section 16A.1283.
3.8 		Subd. 3.I-35W high-occupancy vehicle and dynamic shoulder lane account.
 3.9 	(a) An I-35W high-occupancy vehicle and dynamic shoulder lane account is established 
3.10 	in the special revenue fund. Money collected from fees authorized under subdivision 2 
3.11 	must be deposited in the account and used as described in this subdivision. Money in the 
3.12 	account is appropriated to the commissioner.
3.13 	(b) During the first year of revenue operations, the commissioner shall use the 
3.14 	money received in that year to pay the costs of operating and administering the fee 
3.15 	collection system within the corridor, up to $1,000,000. Any remaining money must be 
3.16 	transferred to the Metropolitan Council for improvement of bus transit services within the 
3.17 	I-35W corridor including transit capital expenses.
3.18 	(c) During the second and subsequent years of revenue operations, the commissioner 
3.19 	shall use money in the account as follows:
3.20 	(1) each year, allocate the lesser amount of $1,000,000 or 75 percent of the revenues 
3.21 	for operating and administering the fee collection system within the corridor; 
3.22 	(2) transfer the remaining amount up to the amount allocated under clause (1) to 
3.23 	the Metropolitan Council for improvement of bus transit within the corridor including 
3.24 	capital expenses; and
3.25 	(3) allocate any remaining amount as follows:
3.26 	(i) 25 percent to the commissioner for operating and administering the fee collection 
3.27 	system within the corridor and for transportation improvements that are consistent with 
3.28 	the goals of the urban partnership agreement and that are located within the corridor; and
3.29 	(ii) 75 percent to the Metropolitan Council for improvement of bus transit services 
3.30 	within the corridor including transit capital expenses.
3.31 	(d) A portion of the revenues collected within the corridor must be spent for noise 
3.32 	mitigation in the corridor. The commissioner and the Metropolitan Council shall prepare a 
3.33 	plan to mitigate noise within the I-35W corridor. The plan must specify the amount of the 
3.34 	revenues collected within the corridor that will be dedicated to noise mitigation.
4.1 		Subd. 4.Exemption from rulemaking and statutory requirements. With respect 
4.2 	to this section, the commissioner is exempt from statutory rulemaking requirements, 
4.3 	including section 14.386, and from sections 160.84 to 160.92 and 161.162 to 161.167.
4.4 		Subd. 5.Prohibition. No person may operate a vehicle in a designated 
4.5 	high-occupancy vehicle lane or dynamic shoulder lane except in compliance with the 
4.6 	requirements of the commissioner. A person who violates this subdivision is guilty 
4.7 	of a petty misdemeanor and is subject to sections 169.89, subdivisions 1, 2, and 4, and 
4.8 	169.891, and any other provision of chapter 169 applicable to the commission of a petty 
4.9 	misdemeanor traffic offense.
4.10 		Subd. 6.Dynamic shoulder lanes. The commissioner may designate dynamic 
4.11 	shoulder lanes on freeways. The commissioner may operate dynamic shoulder lanes 
4.12 	as priced lanes, general purpose lanes, or as shoulders as defined in section 169.01, 
4.13 	subdivision 73, and may prescribe the conditions under which the lanes may be used by all 
4.14 	types of traffic. The commissioner shall erect signs to indicate when the lanes may be used.

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

4.16 	Sec. 4. Minnesota Statutes 2006, section 161.3420, subdivision 2, is amended to read:
4.17 		Subd. 2.Technical Review Committee. During the phase-one request for 
4.18 	qualifications (RFQ) and before solicitation, the commissioner shall appoint a Technical 
4.19 	Review Committee of at least five individuals. The Technical Review Committee must 
4.20 	include an individual whose name and qualifications are submitted to the commissioner 
4.21 	by the Minnesota chapter of the Associated General Contractors, after consultation with 
4.22 	other commercial contractor associations in the state. Members of the Technical Review 
4.23 	Committee who are not state employees are subject to the Minnesota Government Data 
4.24 	Practices Act and section 16C.06 to the same extent that state agencies are subject to those 
4.25 	provisions. The commissioner shall pay reasonable compensation to Technical Review 
4.26 	Committee members who are not public employees for their services. A minimum of 
4.27 	two state employees on the Technical Review Committee must be at the level of senior 
4.28 	administrative engineer or above. A Technical Review Committee member may not 
4.29 	participate in the review or discussion of responses to an RFQ or request for proposals 
4.30 	(RFP) when the member has a financial interest in any of the design-build firms that 
4.31 	respond to that RFQ or RFP. "Financial interest" includes, but is not limited to, being 
4.32 	or serving as an owner, employee, partner, limited liability partner, shareholder, joint 
4.33 	venturer, family member, officer, or director of a design-build firm responding to an RFQ 
4.34 	or RFP for a specific project, or having any other economic interest in that design-build 
4.35 	firm. The members of the Technical Review Committee must be treated as state employees 
5.1 	in the event of litigation resulting from any action arising out of their service on the 
5.2 	committee. The commissioner shall create an audio recording of each meeting that is 
5.3 	scheduled or described in the RFP with a proposer.

5.4 	Sec. 5. Minnesota Statutes 2006, section 161.3420, subdivision 3, is amended to read:
5.5 		Subd. 3.Contents. The commissioner shall prepare or have prepared an RFQ. The 
5.6 	RFQ must include the following:
5.7 	(1) the minimum qualifications of design-builders necessary to meet the requirements 
5.8 	for acceptance;
5.9 	(2) a scope of work statement and schedule;
5.10 	(3) documents defining the project requirements;
5.11 	(4) the form of contract to be awarded;
5.12 	(5) the weighted selection criteria for compiling a short list and the number of firms 
5.13 	to be included in the short list, which must be at least two but not more than five;
5.14 	(6) a description of the request for proposals (RFP) requirements;
5.15 	(7) the maximum time allowed for design and construction;
5.16 	(8) the commissioner's estimated cost of design and construction;
5.17 	(9) requirements for construction experience, design experience, financial, 
5.18 	personnel, and equipment resources available from potential design-builders for the 
5.19 	project and experience in other design-build transportation projects or similar projects, 
5.20 	provided that these requirements may not unduly restrict competition; and
5.21 	(10) a statement that "past performance," or "experience," or other criteria used in the 
5.22 	RFQ evaluation process  does not include the exercise or assertion of a person's legal rights.

5.23 	Sec. 6. Minnesota Statutes 2006, section 161.3420, subdivision 4, is amended to read:
5.24 		Subd. 4.Evaluation. The selection teamTechnical Review Committee shall 
5.25 	evaluate the design-build qualifications of responding firms and shall compile a short list 
5.26 	of no more than five most highly qualified firms in accordance with qualifications criteria 
5.27 	described in the request for qualifications (RFQ). If only one design-build firm responds 
5.28 	to the RFQ or remains on the short list, the commissioner may readvertise or cancel the 
5.29 	project as the commissioner deems necessary.

5.30 	Sec. 7. Minnesota Statutes 2006, section 161.3422, is amended to read:
5.31 	161.3422 RFP FOR DESIGN-BUILD.
5.32 	During phase two, the commissioner shall issue a request for proposals (RFP) to the 
5.33 	design-builders on the short list. The request must include:
6.1 	(1) the scope of work, including (i) performance and technical requirements, (ii) 
6.2 	conceptual design, (iii) specifications, and (iv) functional and operational elements for 
6.3 	the delivery of the completed project, which must be prepared by a registered or licensed 
6.4 	professional engineer;
6.5 	(2) a description of the qualifications required of the design-builder and the selection 
6.6 	criteria, including the weight or relative order, or both, of each criterion and subcriterion;
6.7 	(3) copies of the contract documents that the successful proposer will be expected to 
6.8 	sign;
6.9 	(4) the maximum time allowable for design and construction;
6.10 	(5) the road authority's estimated cost of design and construction;
6.11 	(6) the requirement that a submitted proposal be segmented into two parts, a 
6.12 	technical proposal and a price proposal;
6.13 	(7) the requirement that each proposal be in a separately sealed, clearly identified 
6.14 	package and include the date and time of the submittal deadline;
6.15 	(8) the requirement that the technical proposal include a critical path method; 
6.16 	bar schedule of the work to be performed, or similar schematic; design plans and 
6.17 	specifications; technical reports; calculations; permit requirements; applicable 
6.18 	development fees; and other data requested in the RFP;
6.19 	(9) the requirement that the price proposal contain all design, construction, 
6.20 	engineering, inspection, and construction costs of the proposed project;
6.21 	(10) the date, time, and location of the public opening of the sealed price proposals; 
6.22 	and
6.23 	(11) other information relevant to the project; and
6.24 	(12) a statement that "past performance," "experience," or other criteria used in the 
6.25 	RFP evaluation process does not include the exercise or assertion of a person's legal rights.

6.26 	Sec. 8. Minnesota Statutes 2006, section 161.3426, subdivision 1, is amended to read:
6.27 		Subdivision 1.Award; computation; announcement. Except as provided in 
6.28 	subdivision 2, a design-build contract shall be awarded as follows:
6.29 	(a) The Technical Review Committee shall score the technical proposals using the 
6.30 	selection criteria in the request for proposals (RFP). The Technical Review Committee 
6.31 	shall then submit a technical proposal score for each design-builder to the commissioner. 
6.32 	The Technical Review Committee shall reject any proposal it deems nonresponsive
6.33 	proposal.
6.34 	(b) The commissioner shall announce the technical proposal score for each 
6.35 	design-builder and shall publicly open the sealed price proposals and shall divide each 
7.1 	design-builder's price by the technical score that the Technical Review Committee has 
7.2 	given to it to obtain an adjusted score.  For a project with a value in excess of $10,000,000, 
7.3 	as stated in the RFP, the design-builder selected must be that responsive and responsible 
7.4 	design-builder whose adjusted score is the lowest score that does not exceed 120 percent 
7.5 	of the lowest price that is submitted by a responsive, responsible design-builder.
7.6 	(c) If a time factor is included with the selection criteria in the RFP package, the 
7.7 	commissioner may also adjust the bids using ashall include the value of the time factor 
7.8 	established by the commissioner as a criterion within the RFP. The value of the time 
7.9 	factor must be expressed as a value per day. The adjustment must be based on the total 
7.10 	time value. The total time value is the design-builder's total number of days to complete 
7.11 	the project multiplied by the factor. The time-adjusted price is the total time value plus the 
7.12 	bid amount. This time adjustment to the bids must be used for selection purposes only, 
7.13 	and must not affect the Department of Transportation's liquidated damages schedule or 
7.14 	incentive or disincentive program. An adjusted score must then be obtained by dividing 
7.15 	each design-builder's time-adjusted price by the score given by the technical review team. 
7.16 	The commissioner shall select the responsive and responsible design-builder whose 
7.17 	adjusted score is the lowest.
7.18 	(d) Unless all proposals are rejected, the commissioner shall award the contract 
7.19 	to the responsive and responsible design-builder with the lowest adjusted score. The 
7.20 	commissioner shall reserve the right to reject all proposals.
7.21 	(e) The commissioner shall not limit the ability of design-builders that have 
7.22 	submitted proposals to protest a contemplated or actual award by the commissioner by, 
7.23 	among other things, unreasonably restricting the time to protest, restricting the right to 
7.24 	seek judicial review of the commissioner's actions, attempting to change the judicial 
7.25 	standard of review, or attempting to shift the commissioner's costs or damages from a 
7.26 	protest to a protestor. Before executing a contract for the project, the commissioner 
7.27 	shall wait at least seven days after all of the following have occurred: the award of the 
7.28 	project; public disclosure of the Technical Review Committee's scoring data; and public 
7.29 	identification of the successful proposal.

7.30 	Sec. 9. Minnesota Statutes 2006, section 161.3426, subdivision 3, is amended to read:
7.31 		Subd. 3.Stipulated fee. The commissioner shall award a stipulated fee not less than 
7.32 	two-tenths of one percent of the department's estimated cost of design and construction 
7.33 	to each short-listed, responsible proposer who provides a responsive but unsuccessful 
7.34 	proposal. Any increases to the stipulated fee must be made only by the commissioner and 
7.35 	the reasons for those changes must be publicly announced at the time of the change. If 
8.1 	the commissioner does not award a contract, all short-listed proposers must receive the 
8.2 	stipulated fee. If the commissioner cancels the contract before reviewing the technical 
8.3 	proposals, the commissioner shall award each design-builder on the short list a stipulated 
8.4 	fee of not less than two-tenths of one percent of the commissioner's estimated cost of 
8.5 	design and construction. The commissioner shall pay the stipulated fee to each proposer 
8.6 	within 90 days after the award of the contract or the decision not to award a contract
8.7 	without conditions other than those stated in this subdivision. In consideration for paying 
8.8 	the stipulated fee, the commissioner may use any ideas or information contained in the 
8.9 	proposals in connection with any contract awarded for the project or in connection with a 
8.10 	subsequent procurement, without any obligation to pay any additional compensation to 
8.11 	the unsuccessful proposers. Notwithstanding the other provisions of this subdivision, an 
8.12 	unsuccessful short-list proposer may elect to waive the stipulated fee. If an unsuccessful 
8.13 	short-list proposer elects to waive the stipulated fee, the commissioner may not use 
8.14 	ideas and information contained in that proposer's proposal. Upon the request of the 
8.15 	commissioner, a proposer who waived a stipulated fee may withdraw the waiver, in which 
8.16 	case the commissioner shall pay the stipulated fee to the proposer and thereafter may use 
8.17 	ideas and information in the proposer's proposal.

8.18 	Sec. 10. Minnesota Statutes 2006, section 161.3426, subdivision 4, is amended to read:
8.19 		Subd. 4.Low-bid design-build process. (a) The commissioner may also use 
8.20 	low-bid, design-build procedures to award a design-build contract where the scope of 
8.21 	the work can be clearly defined.
8.22 	(b) Low-bid design-build projects may require a request for qualifications (RFQ) 
8.23 	and short-listing, and must require a request for proposals (RFP).
8.24 	(c) Submitted proposals under this subdivision must include separately a technical 
8.25 	proposal and a price proposal. The low-bid, design-build procedures must follow a 
8.26 	two-step process for review of the responses to the RFP as follows:
8.27 	(1) The first step is the review of the technical proposal by the Technical Review 
8.28 	Committee as provided in section 161.3420, subdivision 2. The Technical Review 
8.29 	Committee must open the technical proposal first and must determine if it complies with 
8.30 	the requirements of the RFP and is responsive. The Technical Review Committee shall 
8.31 	reject any nonresponsive proposal. The Technical Review Committee may not perform 
8.32 	any ranking or scoring of the technical proposals. 
8.33 	(2) The second step is the determination of the low bidder based on the price 
8.34 	proposal. The commissioner may not open the price proposal until the review of the 
8.35 	technical proposal is complete.
9.1 	(d) The contract award under low-bid, design-build procedures must be made to the 
9.2 	proposer whose sealed bid is responsive to the technical requirements as determined by 
9.3 	the Technical Review Committee and that is also the lowest bid.
9.4 	(e) A stipulated fee may be paid for unsuccessful bids on low-bid, design-build 
9.5 	projects only when the commissioner has required an RFQ and short-listed the most 
9.6 	highly qualified responsive bidders.

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

9.8 	Sec. 11. Minnesota Statutes 2006, section 162.02, is amended by adding a subdivision 
9.9 	to read:
9.10 		Subd. 3b.Insurance standards. When reviewing data and information for the 
9.11 	development of safety improvements for trunk highways and state-aid projects, the 
9.12 	commissioner of transportation may consider, among other things, the Insurance Institute 
9.13 	for Highway Safety's findings in addition to standards contained in Department of 
9.14 	Transportation manuals, American Association of State Highway and Transportation 
9.15 	Officials manual on design of highways and streets, and other applicable federal 
9.16 	publications.

9.17 	Sec. 12. Minnesota Statutes 2006, section 163.051, subdivision 1, is amended to read:
9.18 		Subdivision 1.Tax authorized. (a) Except as provided in paragraph (b), the board 
9.19 	of commissioners of each metropolitan county is authorized to levy a wheelage tax of $5 
9.20 	for the year 1972 and each subsequent year thereafter by resolution on each motor vehicle, 
9.21 	except motorcycles as defined in section 169.01, subdivision 4, whichthat is kept in such 
9.22 	county when not in operation and whichthat is subject to annual registration and taxation 
9.23 	under chapter 168. The board may provide by resolution for collection of the wheelage 
9.24 	tax by county officials or it may request that the tax be collected by the state registrar of 
9.25 	motor vehicles, and the state registrar of motor vehicles shall collect such tax on behalf 
9.26 	of the county if requested, as provided in subdivision 2. 
9.27 	(b) The following vehicles are exempt from the wheelage tax: 
9.28 	(1) motorcycles, as defined in section 169.01, subdivision 4; 
9.29 	(2) motorized bicycles, as defined in section 169.01, subdivision 4a; 
9.30 	(3) electric-assisted bicycles, as defined in section 169.01, subdivision 4b; and 
9.31 	(4) motorized foot scooters, as defined in section 169.01, subdivision 4c. 

9.32 	Sec. 13. Minnesota Statutes 2006, section 168.011, subdivision 7, is amended to read:
10.1 		Subd. 7.Passenger automobile. (a) "Passenger automobile" means any motor 
10.2 	vehicle designed and used for carrying not more than 15 individuals, including the driver.
10.3 	(b) "Passenger automobile" does not include motorcycles, motor scooters, buses,  
10.4 	school buses, or commuter vans as defined in section 168.126. Except as provided in 
10.5 	paragraph (c), clause (1), a vehicle with a gross vehicle weight rating of 9,000 to 13,000 
10.6 	pounds that is a pickup truck or a van is not a passenger automobile. 
10.7 	(c) "Passenger automobile" includes, but is not limited to:
10.8 	(1) pickup trucks and vans, including those vans designed to carry passengers, with 
10.9 	a manufacturer's nominal rated carrying capacity of one ton a vehicle that is: (i) a pickup 
10.10 	truck or a van; (ii) not used in furtherance of a commercial enterprise; and (iii) not subject 
10.11 	to state or federal regulation as a commercial motor vehicle; and
10.12 	(2) neighborhood electric vehicles, as defined in section 169.01, subdivision 91; and
10.13 	(3) medium-speed electric vehicles, as defined in section 169.01, subdivision 94.

10.14 	EFFECTIVE DATE. Paragraph (b) and paragraph (c), clause (1), are effective the 
10.15 	day following final enactment and apply to any additional tax for a registration period that 
10.16 	starts on or after March 1, 2011.

10.17 	Sec. 14. Minnesota Statutes 2006, section 168.011, subdivision 22, is amended to read:
10.18 		Subd. 22.Special mobile equipment. (a) "Special mobile equipment" means 
10.19 	every vehicle not designed or used primarily for the transportation of persons or property 
10.20 	and only incidentally operated or moved over a highway, includingexcept vehicles 
10.21 	described in paragraph (b). Special mobile equipment includes, but is not limited to: 
10.22 	ditch-digging apparatuses, moving dollies, pump hoists and other water well-drilling 
10.23 	equipment registered and licensed under chapter 103I, street-sweeping vehicles, and
10.24 	other road construction or road maintenance machinery such as asphalt spreaders, 
10.25 	bituminous mixers, bucket loaders, tractors other than truck-tractors, ditchers, leveling 
10.26 	graders, finishing machines, motor graders, road rollers, scarifiers, truck-mounted log 
10.27 	loaders, earth-moving carryalls, scrapers, power shovels, draglines, self-propelled cranes, 
10.28 	and earth-moving equipment that are used exclusively for commercial logging, and 
10.29 	self-propelled cranes. The term
10.30 	(b) "Special mobile equipment" does not include travel trailers,: (1) machinery that 
10.31 	has been temporarily or permanently mounted on a commercial motor vehicle chassis 
10.32 	that is used only to provide a service and is not able to haul goods for resale; or (2)
10.33 	dump trucks, truck-mounted transit mixers, truck-mounted feed grinders, or other motor 
10.34 	vehicles designed for the transportation of persons or property to which machinery has 
10.35 	been attached.

11.1 	EFFECTIVE DATE. This section is effective the day following final enactment and 
11.2 	applies to any additional tax for a registration period that starts on or after March 1, 2009.

11.3 	Sec. 15. Minnesota Statutes 2006, section 168.012, subdivision 1, is amended to read:
11.4 		Subdivision 1.Vehicles exempt from tax, fees, or plate display. (a) The following 
11.5 	vehicles are exempt from the provisions of this chapter requiring payment of tax and 
11.6 	registration fees, except as provided in subdivision 1c:
11.7 	(1) vehicles owned and used solely in the transaction of official business by the 
11.8 	federal government, the state, or any political subdivision;
11.9 	(2) vehicles owned and used exclusively by educational institutions and used solely 
11.10 	in the transportation of pupils to and from those institutions;
11.11 	(3) vehicles used solely in driver education programs at nonpublic high schools;
11.12 	(4) vehicles owned by nonprofit charities and used exclusively to transport disabled 
11.13 	persons for charitable, religious, or educational purposes;
11.14 	(5) vehicles owned by nonprofit charities and used exclusively for disaster response 
11.15 	and related activities;
11.16 	(6) ambulances owned by ambulance services licensed under section 144E.10, the 
11.17 	general appearance of which is unmistakable; and
11.18 	(6)(7) vehicles owned by a commercial driving school licensed under section 
11.19 	171.34, or an employee of a commercial driving school licensed under section 171.34, and 
11.20 	the vehicle is used exclusively for driver education and training.
11.21 	(b) Vehicles owned by the federal government, municipal fire apparatuses including 
11.22 	fire-suppression support vehicles, police patrols, and ambulances, the general appearance 
11.23 	of which is unmistakable, are not required to register or display number plates.
11.24 	(c) Unmarked vehicles used in general police work, liquor investigations, or arson 
11.25 	investigations, and passenger automobiles, pickup trucks, and buses owned or operated by 
11.26 	the Department of Corrections, must be registered and must display appropriate license 
11.27 	number plates, furnished by the registrar at cost. Original and renewal applications for 
11.28 	these license plates authorized for use in general police work and for use by the Department 
11.29 	of Corrections must be accompanied by a certification signed by the appropriate chief of 
11.30 	police if issued to a police vehicle, the appropriate sheriff if issued to a sheriff's vehicle, 
11.31 	the commissioner of corrections if issued to a Department of Corrections vehicle, or the 
11.32 	appropriate officer in charge if issued to a vehicle of any other law enforcement agency. 
11.33 	The certification must be on a form prescribed by the commissioner and state that the 
11.34 	vehicle will be used exclusively for a purpose authorized by this section.
12.1 	(d) Unmarked vehicles used by the Departments of Revenue and Labor and Industry, 
12.2 	fraud unit, in conducting seizures or criminal investigations must be registered and must 
12.3 	display passenger vehicle classification license number plates, furnished at cost by the 
12.4 	registrar. Original and renewal applications for these passenger vehicle license plates 
12.5 	must be accompanied by a certification signed by the commissioner of revenue or the 
12.6 	commissioner of labor and industry. The certification must be on a form prescribed by 
12.7 	the commissioner and state that the vehicles will be used exclusively for the purposes 
12.8 	authorized by this section.
12.9 	(e) Unmarked vehicles used by the Division of Disease Prevention and Control of the 
12.10 	Department of Health must be registered and must display passenger vehicle classification 
12.11 	license number plates. These plates must be furnished at cost by the registrar. Original 
12.12 	and renewal applications for these passenger vehicle license plates must be accompanied 
12.13 	by a certification signed by the commissioner of health. The certification must be on a 
12.14 	form prescribed by the commissioner and state that the vehicles will be used exclusively 
12.15 	for the official duties of the Division of Disease Prevention and Control.
12.16 	(f) Unmarked vehicles used by staff of the Gambling Control Board in gambling 
12.17 	investigations and reviews must be registered and must display passenger vehicle 
12.18 	classification license number plates. These plates must be furnished at cost by the 
12.19 	registrar. Original and renewal applications for these passenger vehicle license plates must 
12.20 	be accompanied by a certification signed by the board chair. The certification must be on a 
12.21 	form prescribed by the commissioner and state that the vehicles will be used exclusively 
12.22 	for the official duties of the Gambling Control Board.
12.23 	(g) Each state hospital and institution for persons who are mentally ill and 
12.24 	developmentally disabled may have one vehicle without the required identification on 
12.25 	the sides of the vehicle. The vehicle must be registered and must display passenger 
12.26 	vehicle classification license number plates. These plates must be furnished at cost by the 
12.27 	registrar. Original and renewal applications for these passenger vehicle license plates must 
12.28 	be accompanied by a certification signed by the hospital administrator. The certification 
12.29 	must be on a form prescribed by the commissioner and state that the vehicles will be used 
12.30 	exclusively for the official duties of the state hospital or institution.
12.31 	(h) Each county social service agency may have vehicles used for child and 
12.32 	vulnerable adult protective services without the required identification on the sides of the 
12.33 	vehicle. The vehicles must be registered and must display passenger vehicle classification 
12.34 	license number plates. These plates must be furnished at cost by the registrar. Original 
12.35 	and renewal applications for these passenger vehicle license plates must be accompanied 
12.36 	by a certification signed by the agency administrator. The certification must be on a form 
13.1 	prescribed by the commissioner and state that the vehicles will be used exclusively for the 
13.2 	official duties of the social service agency.
13.3 	(i) All other motor vehicles must be registered and display tax-exempt number 
13.4 	plates, furnished by the registrar at cost, except as provided in subdivision 1c. All vehicles 
13.5 	required to display tax-exempt number plates must have the name of the state department 
13.6 	or political subdivision, nonpublic high school operating a driver education program, or
13.7 	licensed commercial driving school, or other qualifying organization or entity, plainly 
13.8 	displayed on both sides of the vehicle; except that each state hospital and institution for 
13.9 	persons who are mentally ill and developmentally disabled may have one vehicle without 
13.10 	the required identification on the sides of the vehicle, and county social service agencies 
13.11 	may have vehicles used for child and vulnerable adult protective services without the 
13.12 	required identification on the sides of the vehicle. This identification must be in a color 
13.13 	giving contrast with that of the part of the vehicle on which it is placed and must endure 
13.14 	throughout the term of the registration. The identification must not be on a removable 
13.15 	plate or placard and must be kept clean and visible at all times; except that a removable 
13.16 	plate or placard may be utilized on vehicles leased or loaned to a political subdivision or 
13.17 	to a nonpublic high school driver education program.

13.18 	Sec. 16. Minnesota Statutes 2006, section 168.012, is amended by adding a subdivision 
13.19 	to read:
13.20 		Subd. 2c.Spotter trucks. Spotter trucks, as defined in section 169.01, subdivision 
13.21 	7a, shall not be taxed as motor vehicles using the public streets and highways, and shall be 
13.22 	exempt from the provisions of this chapter.

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

13.25 	Sec. 17. Minnesota Statutes 2006, section 168.013, is amended by adding a subdivision 
13.26 	to read:
13.27 		Subd. 1l.Concrete pumps and street-sweeping vehicles. The tax on 
13.28 	vehicle-mounted concrete pumps and street-sweeping vehicles that are not registered 
13.29 	under section 168.187 is 15 percent of the Minnesota base rate schedule. Vehicles 
13.30 	registered under this subdivision must display plates from a distinctive series.

13.31 	EFFECTIVE DATE. This section is effective the day following final enactment and 
13.32 	applies to any additional tax for a registration period that starts on or after March 1, 2009.

14.1 	Sec. 18. Minnesota Statutes 2006, section 168.021, subdivision 1, is amended to read:
14.2 		Subdivision 1.Disability plates; application. (a) When a motor vehicle registered 
14.3 	under section 168.017, a motorcycle, a truck having a manufacturer's nominal rated 
14.4 	capacity of one ton and resembling a pickup truck, or a self-propelled recreational vehicle 
14.5 	is owned or primarily operated by a permanently physically disabled person or a custodial 
14.6 	parent or guardian of a permanently physically disabled minor, the owner may apply for 
14.7 	and secure from the commissioner (1) immediately, a temporary permit valid for 30 days 
14.8 	if the applicant is eligible for the disability plates issued under this section, and (2) two 
14.9 	disability plates with attached emblems, one plate to be attached to the front, and one 
14.10 	to the rear of the motor vehicle.
14.11 	(b) The commissioner shall not issue more than one set of plates to any owner of a 
14.12 	motor vehicle at the same time unless all motor vehicles have been specifically modified 
14.13 	for and are used exclusively by a permanently physically disabled personthe state council 
14.14 	on disability approves the issuance of a second set of plates to a motor vehicle owner.
14.15 	(c) When the owner first applies for the disability plates, the owner must submit a 
14.16 	medical statement in a format approved by the commissioner under section 169.345, or 
14.17 	proof of physical disability provided for in that section.
14.18 	(d) No medical statement or proof of disability is required when an owner of a motor 
14.19 	vehicle applies for plates for one or more motor vehicles that are specially modified for 
14.20 	and used exclusively by permanently physically disabled persons.
14.21 	(e) The owner of a motor vehicle may apply for and secure (i) immediately, a permit 
14.22 	valid for 30 days, if the applicant is eligible to receive the disability plates issued under 
14.23 	this section, and (ii) a set of disability plates for a motor vehicle if:
14.24 	(1) the owner employs a permanently physically disabled person who would qualify 
14.25 	for disability plates under this section; and
14.26 	(2) the owner furnishes the motor vehicle to the physically disabled person for the 
14.27 	exclusive use of that person in the course of employment.

14.28 	Sec. 19. Minnesota Statutes 2006, section 168.021, subdivision 2, is amended to read:
14.29 		Subd. 2.Plate design; furnished by commissioner. The commissioner shall design 
14.30 	and furnish two disability plates with attached emblems to each an eligible owner. The 
14.31 	emblem must bear the internationally accepted wheelchair symbol, as designated in 
14.32 	section 16B.61, subdivision 5, approximately three inches square. The emblem must 
14.33 	be large enough to be visible plainly from a distance of 50 feet. An applicant eligible 
14.34 	for disability plates shall pay the motor vehicle registration fee authorized by sections 
14.35 	168.013 and 168.09.

15.1 	Sec. 20. Minnesota Statutes 2006, section 168.09, subdivision 7, is amended to read:
15.2 		Subd. 7.Display of temporary permit; special plates. (a) A vehicle that displays a 
15.3 	special Minnesota plate issued under section 168.021; 168.12, subdivision 2, 2a, 2b, 2c, or 
15.4 	2d; 168.123; 168.124; 168.125; 168.126; 168.128; or 168.129,chapter 168 may display a 
15.5 	temporary permit in conjunction with expired registration if:
15.6 	(1) the current registration tax and all other fees and taxes have been paid in full; and
15.7 	(2) the plate requires replacement under section 168.12, subdivision 1, paragraph 
15.8 	(d), clause (3) has been applied for.
15.9 	(b) A vehicle that is registered under section 168.10 may display a temporary permit 
15.10 	in conjunction with expired registration, with or without a registration plate, if:
15.11 	(1) the plates have been applied for and the registration tax has and other fees and 
15.12 	taxes have been paid in full, as provided for in section 168.10; and
15.13 	(2) either the vehicle is used solely as a collector vehicle while displaying the 
15.14 	temporary permit and not used for general transportation purposes or the vehicle was 
15.15 	issued a 21-day permit under section 168.092, subdivision 1.
15.16 	(c) The permit is valid for a period of 60 days. The permit must be in a format 
15.17 	prescribed by the commissioner and whenever practicable must be posted upon the 
15.18 	driver's side of the rear window on the inside of the vehicle. The permit is valid only 
15.19 	for the vehicle for which it was issued to allow a reasonable time for the new plates to 
15.20 	be manufactured and delivered to the applicant. The permit may be issued only by the 
15.21 	commissioner or by a deputy registrar under section 168.33.

15.22 	Sec. 21. Minnesota Statutes 2006, section 168.123, subdivision 2, is amended to read:
15.23 		Subd. 2.Design. The commissioner of veterans affairs shall design the emblem for 
15.24 	the veterans' special plates, subject to the approval of the commissioner, that satisfy the 
15.25 	following requirements:
15.26 	(a) For a Vietnam veteran who served after July 1, 1961, and before July 1, 1978, 
15.27 	in the active military service in a branch of the armed forces of the United States or a 
15.28 	nation or society allied with the United States the special plates must bear the inscription 
15.29 	"VIETNAM VET" and the letters "V" and "V" with the first letter directly above the 
15.30 	second letter and both letters just preceding the first numeral of the special plate number.
15.31 	(b) For a veteran stationed on the island of Oahu, Hawaii, or offshore, during the 
15.32 	attack on Pearl Harbor on December 7, 1941, the special plates must bear the inscription 
15.33 	"PEARL HARBOR SURVIVOR" and the letters "P" and "H" with the first letter directly 
15.34 	above the second letter and both letters just preceding the first numeral of the special 
15.35 	plate number.
16.1 	(c) For a veteran who served during World War I or World War II, the plates must 
16.2 	bear the inscription "WORLD WAR VET" and:
16.3 	(1) for a World War I veteran, the characters "W" and "I" with the first character 
16.4 	directly above the second character and both characters just preceding the first numeral 
16.5 	of the special plate number; or
16.6 	(2) for a World War II veteran, the characters "W" and "II" with the first character 
16.7 	directly above the second character and both characters just preceding the first numeral of 
16.8 	the special plate number.
16.9 	(d) For a veteran who served during the Korean Conflict, the special plates must 
16.10 	bear the inscription "KOREAN VET" and the letters "K" and "V" with the first letter 
16.11 	directly above the second letter and both letters just preceding the first numeral of the 
16.12 	special plate number.
16.13 	(e) For a combat wounded veteran who is a recipient of the purple heart medal, the 
16.14 	plates must bear the inscription "COMBAT WOUNDED VET" and have a facsimile on
16.15 	or an emblem of the official purple heart medal and the letters "C" over "W" with the 
16.16 	first letter directly over the second letter just preceding the first numeral of the special 
16.17 	plate number.
16.18 	(f) For a Persian Gulf War veteran, the plates must bear the inscription "GULF 
16.19 	WAR VET" and the letters "G" and "W" with the first letter directly above the second 
16.20 	letter and both letters just preceding the first numeral of the special plate number. For 
16.21 	the purposes of this section, "Persian Gulf War veteran" means a person who served on 
16.22 	active duty after August 1, 1990, in a branch of the armed forces of the United States or 
16.23 	a nation or society allied with the United States or the United Nations during Operation 
16.24 	Desert Shield, Operation Desert Storm, or other military operation in the Persian Gulf 
16.25 	area combat zone as designated in United States Presidential Executive Order No. 12744, 
16.26 	dated January 21, 1991.
16.27 	(g) For a veteran who served in the Laos War after July 1, 1961, and before July 1, 
16.28 	1978, the special plates must bear the inscription "LAOS WAR VET" and the letters "L" 
16.29 	and "V" with the first letter directly above the second letter and both letters just preceding 
16.30 	the first numeral of the special plate number.
16.31 	(h) For a veteran who is the recipient of:
16.32 	(1) the Iraq Campaign Medal, the special plates must be inscribed with a facsimile of 
16.33 	that medal and must bear the inscription "IRAQ WAR VET" directly below the special 
16.34 	plate number;
17.1 	(2) the Afghanistan Campaign Medal, the special plates must be inscribed with a 
17.2 	facsimile of that medal and must bear the inscription "AFGHAN WAR VET" directly 
17.3 	below the special plate number; or
17.4 	(3) the Global War on Terrorism Expeditionary Medal, the special plates must 
17.5 	be inscribed with a facsimile of that medal and must bear the inscription "GWOT 
17.6 	VETERAN" directly below the special plate number.
17.7 	(i) For a veteran who is the recipient of the Global War on Terrorism Service Medal, 
17.8 	the special plates must be inscribed with a facsimile of that medal and must bear the 
17.9 	inscription "GWOT VETERAN" directly below the special plate number. In addition, 
17.10 	any member of the National Guard or other military reserves who has been ordered to 
17.11 	federally funded state active service under United States Code, title 32, as defined in 
17.12 	section 190.05, subdivision 5b, and who is the recipient of the Global War on Terrorism 
17.13 	Service Medal, is eligible for the license plate described in this paragraph, irrespective of 
17.14 	whether that person qualifies as a veteran under section 197.447.
17.15 	(j) For a veteran who is a recipient of the Bronze Star medal, the plates must bear 
17.16 	the inscription "BRONZE STAR VET" and have a facsimile or an emblem of the official 
17.17 	Bronze Star medal and the letters "B" over "S" with the first letter directly over the second 
17.18 	letter just preceding the first numeral of the special plate number. 
17.19 	(k) For a veteran who is a recipient of the Silver Star medal, the plates must bear the 
17.20 	inscription "SILVER STAR VET" and have a facsimile or an emblem of the official Silver 
17.21 	Star medal and the letters "S" over "S" with the first letter directly over the second letter 
17.22 	just preceding the first numeral of the special plate number.

17.23 	Sec. 22. [168.1295] MINNESOTA SESQUICENTENNIAL SPECIAL PLATES.
17.24 		Subdivision 1.Issuance and design. Notwithstanding section 168.1293, the 
17.25 	commissioner shall issue Minnesota sesquicentennial plates or one motorcycle plate to 
17.26 	an applicant who:
17.27 	(1) is a registered owner of a passenger automobile, one-ton pickup truck, 
17.28 	motorcycle, or recreational vehicle;
17.29 	(2) pays a fee of $10 for each set of license plates;
17.30 	(3) contributes a minimum of $25 to the Minnesota Sesquicentennial Commission; 
17.31 	and
17.32 	(4) complies with this chapter and rules governing registration of motor vehicles 
17.33 	and licensing of drivers.
18.1 		Subd. 2.Novelty plates. Notwithstanding subdivision 1, the commissioner may 
18.2 	issue distinctive Minnesota Sesquicentennial novelty plates for a fee of $5 for each plate, 
18.3 	and a minimum contribution of $25 to the Minnesota Sesquicentennial Commission.
18.4 		Subd. 3.Design. After consultation with the Minnesota Sesquicentennial 
18.5 	Commission, the commissioner shall design the special plate.
18.6 		Subd. 4.Plates transfer. On payment of a transfer fee of $5, plates issued under 
18.7 	subdivision 1 may be transferred to another passenger automobile, one-ton pickup truck, 
18.8 	motorcycle, or recreational vehicle registered to the individual to whom the special 
18.9 	plates were issued.
18.10 		Subd. 5.Fees. Fees collected under subdivision 1, clause (2), or under subdivision 
18.11 	2, are credited to the vehicle services operating account in the special revenue fund.
18.12 		Subd. 6.Contributions. Contributions collected under subdivision 1, clause (3), or 
18.13 	under subdivision 2, are credited to the sesquicentennial account, which is established 
18.14 	in the special revenue fund. Money in the account is appropriated to the Minnesota 
18.15 	Sesquicentennial Commission to be used in performance of the commission's powers 
18.16 	and duties. After the commission expires, money in the account is appropriated to the 
18.17 	Capitol Area Architectural and Planning Board for restoration and renovation of the 
18.18 	Capitol Building.

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

18.20 	Sec. 23. [168.1299] AMERICAN RED CROSS SPECIAL PLATES.
18.21 		Subdivision 1.Issuance and design. Notwithstanding section 168.1293, the 
18.22 	commissioner shall issue American Red Cross plates or a single motorcycle plate to 
18.23 	an applicant who:
18.24 	(1) is a registered owner of a passenger automobile, one-ton pickup truck, 
18.25 	motorcycle, or recreational vehicle;
18.26 	(2) pays a fee of $10 for each set of license plates;
18.27 	(3) contributes a minimum of $25 to the American Red Cross disaster preparedness 
18.28 	and relief account; and
18.29 	(4) complies with this chapter and rules governing registration of motor vehicles 
18.30 	and licensing of drivers.
18.31 		Subd. 2.Design. After consultation with the Minnesota chapters of the American 
18.32 	Red Cross, the commissioner shall design the special plate.
18.33 		Subd. 3.Plates transfer. On payment of a transfer fee of $5, plates issued under this 
18.34 	section may be transferred to another passenger automobile registered to the individual 
18.35 	to whom the special plates were issued.
19.1 		Subd. 4.Fees. Fees collected under subdivision 1, clause (2), are credited to the 
19.2 	vehicle services operating account in the special revenue fund.
19.3 		Subd. 5.Contributions. Contributions collected under subdivision 1, clause (3), 
19.4 	are credited to the American Red Cross disaster preparedness and relief account, which 
19.5 	is established in the special revenue fund. Money in the account is appropriated to the 
19.6 	commissioner of public safety for a grant to the Minnesota chapters of the American Red 
19.7 	Cross to be used for disaster preparedness, education, and disaster response.

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

19.9 	Sec. 24. Minnesota Statutes 2006, section 168.185, is amended to read:
19.10 	168.185 USDOT NUMBERS.
19.11 	(a) Except as provided in paragraph (d), an owner of a truck or truck-tractor having a 
19.12 	gross vehicle weight of more than 10,000 pounds, as defined in section 169.01, subdivision 
19.13 	46, other than a farm truck that is not used in interstate commerce, shall report to the 
19.14 	registrar commissioner at the time of registration its USDOT carrier number. A person 
19.15 	subject to this paragraph who does not have a USDOT number shall apply for the number 
19.16 	at the time of registration by completing a form MCS-150 Motor Carrier Identification 
19.17 	Report, issued by the Federal Motor Carrier Safety Administration, or comparable 
19.18 	document as determined by the registrar commissioner. The registrar commissioner shall 
19.19 	not assign a USDOT carrier number to a vehicle owner who is not subject to this paragraph.
19.20 	(b) Assigned USDOT numbers need not be displayed on the outside of the 
19.21 	vehicle, but must be made available upon request of an authorized agent of the registrar
19.22 	commissioner, peace officer, other employees of the State Patrol authorized in chapter 
19.23 	299D, or employees of the Minnesota Department of Transportation. The vehicle owner 
19.24 	shall notify the registrar commissioner if there is a change to the owner's USDOT number.
19.25 	(c) If an owner fails to report or apply for a USDOT number, the registrar
19.26 	commissioner shall suspend the owner's registration.
19.27 	(d) Until October 1, 2003, paragraphs (a) to (c) do not apply to an agricultural 
19.28 	fertilizer or agricultural chemical retailer while exclusively engaged in delivering fertilizer 
19.29 	or agricultural chemicals to a farmer for on-farm use. This section does not apply to 
19.30 	(1) a farm truck that is not used in interstate commerce, (2) a vehicle that is not used 
19.31 	in intrastate commerce or interstate commerce, or (3) a vehicle that is owned and used 
19.32 	solely in the transaction of official business by the federal government, the state, or any 
19.33 	political subdivision.

20.1 	Sec. 25. Minnesota Statutes 2006, section 168.28, is amended to read:
20.2 	168.28 VEHICLES SUBJECT TO TAX; EXCEPTIONS.
20.3 	Every motor vehicle (except those exempted in section 168.012, and except those 
20.4 	which are being towed upon the streets and highways and which shall not be deemed to 
20.5 	be using the streets and highways within the meaning of this section) shall be deemed to 
20.6 	be one using the public streets and highways and hence as such subject to taxation under 
20.7 	this chapter if such motor vehicle has since April 23, 1921, used such public streets or 
20.8 	highways, or shall actually use them, or if it shall come into the possession of an owner 
20.9 	other than as a manufacturer, dealer, warehouse operator, mortgagee or pledgee. New and 
20.10 	unused motor vehicles in the possession of a dealer solely for the purpose of sale, and 
20.11 	used or secondhand motor vehicles which have not theretofore used the public streets or 
20.12 	highways of this state which are in the possession of a dealer solely for the purpose of sale 
20.13 	and which are duly listed as herein provided, shall not be deemed to be vehicles using the 
20.14 	public streets or highways. The driving or operating of a motor vehicle upon the public 
20.15 	streets or highways of this state by a motor vehicle dealer or any employee of such motor 
20.16 	vehicle dealer for demonstration purposes or for any purpose incident to the usual and 
20.17 	customary conduct and operation of the business in which licensed under section 168.27
20.18 	to engage, or solely for the purpose of moving it from points outside or within the state 
20.19 	to the place of business or storage of a licensed dealer within the state or solely for the 
20.20 	purpose of moving it from the place of business of a manufacturer, or licensed dealer 
20.21 	within the state to the place of business or residence of a purchaser outside the state, shall 
20.22 	not be deemed to be using the public streets or highways in the state within the meaning 
20.23 	of this chapter or of the Constitution of the state of Minnesota, article XIV, and shall not 
20.24 	be held to make the motor vehicle subject to taxation under this chapter as one using the 
20.25 	public streets or highways, if during such driving or moving the dealer's plates herein 
20.26 	provided for shall be duly displayed upon such vehicle. Any dealer or distributor may 
20.27 	register a motor vehicle prior to its assessment or taxation as personal property, and pay 
20.28 	the license fee and tax thereon for the full calendar year as one using the public streets and 
20.29 	highways, and thereafter such vehicle shall be deemed to be one using the public streets 
20.30 	and highways and shall not be subject to assessment or taxation as personal property 
20.31 	during the calendar year for which it is so registered, whether or not such vehicle shall 
20.32 	actually have used the streets or highways. Special mobile equipment is subject to a 
20.33 	penalty equal to the tax due under this chapter for the full registration year if it is used to 
20.34 	transport persons or property at any time using the public streets.

20.35 	Sec. 26. Minnesota Statutes 2006, section 168A.01, subdivision 21, is amended to read:
21.1 		Subd. 21.Special mobile equipment. "Special mobile equipment" means every 
21.2 	vehicle not designed or used primarily for the transportation of persons or property 
21.3 	and only incidentally operated or moved over a highway, including but not limited to: 
21.4 	ditch-digging apparatuses, well-boring apparatuses, moving dollies, sawing machines, 
21.5 	corn shellers, and road construction and maintenance machinery such as asphalt spreaders, 
21.6 	bituminous mixers, bucket loaders, tractors other than truck-tractors, ditchers, leveling 
21.7 	graders, finishing machines, motor graders, road rollers, scarifiers, earth-moving carryalls 
21.8 	and scrapers, power shovels and draglines, and self-propelled cranes and earth-moving 
21.9 	equipment. The term does not include travel trailers, dump trucks, truck-mounted transit 
21.10 	mixers, truck-mounted feed grinders, or other vehicles designed for the transportation 
21.11 	of persons or property to which machinery has been attached has the meaning given it 
21.12 	in section 168.011.

21.13 	Sec. 27. Minnesota Statutes 2006, section 168A.03, subdivision 1, is amended to read:
21.14 		Subdivision 1.No certificate issued. The registrar shall not issue a certificate of 
21.15 	title for:
21.16 	(1) a vehicle owned by the United States;
21.17 	(2) a vehicle owned by a nonresident and not required by law to be registered in 
21.18 	this state;
21.19 	(3) a vehicle owned by a nonresident and regularly engaged in the interstate 
21.20 	transportation of persons or property for which a currently effective certificate of title 
21.21 	has been issued in another state;
21.22 	(4) a vehicle moved solely by animal power;
21.23 	(5) an implement of husbandry;
21.24 	(6) special mobile equipment;
21.25 	(7) a self-propelled wheelchair or invalid tricycle;
21.26 	(8) a trailer (i) having a gross weight of 4,000 pounds or less unless a secured party 
21.27 	holds an interest in the trailer or a certificate of title was previously issued by this state or 
21.28 	any other state or (ii) designed primarily for agricultural purposes except a recreational 
21.29 	vehicle or a manufactured home, both as defined in section 168.011, subdivisions 8 and 25; 
21.30 	(9) a snowmobile; and
21.31 	(10) a spotter truck, as defined in section 169.01, subdivision 7a.

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

21.34 	Sec. 28. Minnesota Statutes 2006, section 168A.05, subdivision 9, is amended to read:
22.1 		Subd. 9.Neighborhood electric vehicle and medium-speed electric vehicles; 
22.2 	certificate required. Neighborhood electric vehicles and medium-speed electric vehicles, 
22.3 	as defined in section 169.01, subdivisionsubdivisions 91 and 94, must be titled as 
22.4 	specified in section 168A.02. The department shall not issue a title for a neighborhood 
22.5 	electric vehicle or a medium-speed electric vehicle (1) that lacks a vehicle identification 
22.6 	number, and (2) for which a manufacturer's certificate of origin clearly labeling the 
22.7 	vehicle as a neighborhood electric vehicle or similar designation has not been issued. The 
22.8 	department shall not issue a vehicle identification number to a homemade neighborhood 
22.9 	electric or low-speed vehicle or retrofitted golf cart, and such vehicles do not qualify as 
22.10 	neighborhood electric vehicles.

22.11 	Sec. 29. Minnesota Statutes 2006, section 168B.051, subdivision 2, is amended to read:
22.12 		Subd. 2.Sale after 45 days or title transfer. An(a) If an unauthorized vehicle is 
22.13 	impounded, other than by the city of Minneapolis or the city of St. Paul, the impounded 
22.14 	vehicle is eligible for disposal or sale under section 168B.08, the earlier of:
22.15 	(1) 45 days after notice to the owner, if the vehicle is determined to be an 
22.16 	unauthorized vehicle that was not impounded by the city of Minneapolis or the city of 
22.17 	St. Paul; or
22.18 	(2) the date of a voluntary written title transfer by the registered owner to the 
22.19 	impound lot operator.
22.20 	(b) A voluntary written title transfer constitutes a waiver by the registered owner of 
22.21 	any right, title, and interest in the vehicle.

22.22 	Sec. 30. Minnesota Statutes 2006, section 168B.06, subdivision 1, is amended to read:
22.23 		Subdivision 1.Contents;Waiver of right to reclaim vehicle; written notice given 
22.24 	within five days of impound. (a) When an impounded vehicle is taken into custody, the 
22.25 	unit of government or impound lot operator taking it into custody shall give written notice 
22.26 	of the taking within five days to the registered vehicle owner and any lienholders. The 
22.27 	failure of the registered owner or lienholders to exercise the right to reclaim the vehicle 
22.28 	before the expiration of the waiting periods provided under section 168B.051 constitutes a 
22.29 	waiver of all right, title, and interest in the vehicle and a consent to the transfer of title to, 
22.30 	and disposal or sale of, the vehicle under section 168B.08. The failure of the registered 
22.31 	owner to exercise the right provided under section 168B.07, subdivision 3, constitutes a 
22.32 	waiver of all right, title, and interest in the contents and a consent to the transfer of title to, 
22.33 	and disposal or sale of, the contents under section 168B.08. 
22.34 	(b) The notice shall must:
23.1 	(1) set forth the date and place of the taking,;
23.2 	(2) provide the year, make, model, and serial number of the impounded motor 
23.3 	vehicle, if such information can be reasonably obtained, and the place where the vehicle 
23.4 	is being held,;
23.5 	(2) (3) inform the owner and any lienholders of their right to reclaim the vehicle 
23.6 	under section 168B.07, and;
23.7 	(3) (4) state that failure of the owner or lienholders to:
23.8 	(i)  exercise their right to reclaim the vehicle and contents within the appropriate time 
23.9 	allowed under section 168B.051, subdivision 1, 1a, or 2, shall be deemedand under the 
23.10 	conditions set forth in section 168B.07, subdivision 1, constitutes a waiver by them of all 
23.11 	right, title, and interest in the vehicle and contents and a consent to the transfer of title to 
23.12 	and disposal or sale of the vehicle and contents pursuant to section 168B.08; or
23.13 	(ii) exercise their right to reclaim the contents of the vehicle within the appropriate 
23.14 	time allowed and under the conditions set forth in section 168B.07, subdivision 3, 
23.15 	constitutes a waiver by them of all right, title, and interest in the contents and consent to 
23.16 	sell or dispose of the contents under section 168B.08; and
23.17 	(5) state that a vehicle owner who provides to the impound lot operator 
23.18 	documentation from a government or nonprofit agency or legal aid office that the owner 
23.19 	is homeless, receives relief based on need, is eligible for legal aid services, or has a 
23.20 	household income at or below 50 percent of state median income has the unencumbered 
23.21 	right to retrieve any and all contents without charge. 

23.22 	Sec. 31. Minnesota Statutes 2006, section 168B.06, subdivision 3, is amended to read:
23.23 		Subd. 3.Unauthorized vehicle; second notice. If an unauthorized vehicle remains 
23.24 	unclaimed after 30 days from the date the notice was sent under subdivision 2, a second 
23.25 	notice shallmust be sent by certified mail, return receipt requested, to the registered owner, 
23.26 	if any, of the unauthorized vehicle and to all readily identifiable lienholders of record.

23.27 	Sec. 32. Minnesota Statutes 2006, section 168B.07, is amended by adding a 
23.28 	subdivision to read:
23.29 		Subd. 3.Retrieval of contents. (a) For purposes of this subdivision:
23.30 	(1) "contents" does not include any permanently affixed mechanical or 
23.31 	nonmechanical automobile parts; automobile body parts; or automobile accessories, 
23.32 	including audio or video players; and
23.33 	(2) "relief based on need" includes, but is not limited to, receipt of MFIP 
23.34 	and Diversionary Work Program, medical assistance, general assistance, general 
24.1 	assistance medical care, emergency general assistance, Minnesota supplemental aid, 
24.2 	MSA-emergency assistance, MinnesotaCare, Supplemental Security Income, energy 
24.3 	assistance, emergency assistance, Food Stamps, earned income tax credit, or Minnesota 
24.4 	working family tax credit.
24.5 	(b) A unit of government or impound lot operator shall establish reasonable 
24.6 	procedures for retrieval of vehicle contents, and may establish reasonable procedures to 
24.7 	protect the safety and security of the impound lot and its personnel.
24.8 	(c) At any time before the expiration of the waiting periods provided in section 
24.9 	168B.051, a registered owner who provides documentation from a government or 
24.10 	nonprofit agency or legal aid office that the registered owner is homeless, receives relief 
24.11 	based on need, is eligible for legal aid services, or has a household income at or below 50 
24.12 	percent of state median income has the unencumbered right to retrieve any and all contents 
24.13 	without charge and regardless of whether the registered owner pays incurred charges or 
24.14 	fees, transfers title, or reclaims the vehicle.
24.15 	(d) At any time before the expiration of the waiting periods provided in section 
24.16 	168B.051, a registered owner other than a registered owner described in paragraph (c) 
24.17 	has the unencumbered right to retrieve the following contents: medicine; medical-related 
24.18 	items and equipment; clothing; eyeglasses; educational materials; and legal documents, 
24.19 	including, but not limited to, a driver's license, identification, passports, insurance 
24.20 	documents, any other documents related to a pending or concluded judicial or 
24.21 	administrative proceeding, tax returns, and documents indicating receipt of or eligibility 
24.22 	for public benefit programs. This provision does not prohibit the return of other contents 
24.23 	at the discretion of the impound lot operator.
24.24 	(e) An impound lot operator is not required to return any contents to a person who is 
24.25 	not the registered owner of the impounded vehicle, other than legal documents. Legal 
24.26 	documents include, but are not limited to, driver's license, identification, passports, 
24.27 	insurance documents, any other documents related to a pending or concluded judicial or 
24.28 	administrative proceeding, and tax returns. An impound lot operator is not required to 
24.29 	return any contents to a person who is not the registered owner after the expiration of 
24.30 	the waiting periods provided in section 168B.051, or if the registered owner voluntarily 
24.31 	transfers title to the impound lot operator under section 168B.051, subdivision 2.

24.32 	Sec. 33. Minnesota Statutes 2006, section 168B.08, subdivision 1, is amended to read:
24.33 		Subdivision 1.Auction or sale. (a) If an abandoned or unauthorized vehicle and 
24.34 	contents taken into custody by a unit of government or any impound lot is not reclaimed 
24.35 	under section 168B.07, subdivision 1, it may be disposed of or sold at auction or sale when 
25.1 	eligible pursuant to sections 168B.06 and 168B.07. If the contents of an abandoned or 
25.2 	unauthorized vehicle taken into custody by a unit of government or any impound lot are 
25.3 	not reclaimed under section 168B.07, subdivision 3, they may be disposed of or sold at 
25.4 	auction or sale when eligible pursuant to sections 168B.06 and 168B.07.
25.5 	(b) The purchaser shall be given a receipt in a form prescribed by the registrar of 
25.6 	motor vehicles which shall be sufficient title to dispose of the vehicle. The receipt shall 
25.7 	also entitle the purchaser to register the vehicle and receive a certificate of title, free and 
25.8 	clear of all liens and claims of ownership. Before such a vehicle is issued a new certificate 
25.9 	of title it must receive a motor vehicle safety check.

25.10 	Sec. 34. Minnesota Statutes 2006, section 168B.087, subdivision 1, is amended to read:
25.11 		Subdivision 1.Deficiency claim. (a) The nonpublic impound lot operator has a 
25.12 	deficiency claim against the registered owner of the vehicle for the reasonable costs of 
25.13 	services provided in the towing, storage, and inspection of the vehicle minus the proceeds 
25.14 	of the sale or auction, except as provided in paragraph (c).
25.15 	(b) The claim for storage costs may not exceed the costs of:
25.16 	(1) 25 days storage, for a vehicle described in section 168B.051, subdivision 1; and 
25.17 	(2) 15 days storage, for a vehicle described in section 168B.051, subdivision 1a; and
25.18 	(3) 55 days storage, for a vehicle described in section 168B.051, subdivision 2. 
25.19 	(c) A public impound lot operator is prohibited from:
25.20 	(1) filing a deficiency claim against a registered owner whom the operator knows:
25.21 	(i) is homeless;
25.22 	(ii) receives relief based on need, as defined in section 168B.07; or
25.23 	(iii) has a household income at or below 50 percent of state median income; or
25.24 	(2) recovering a deficiency from a registered owner who demonstrates that the 
25.25 	owner, at the time the deficiency claim was filed:
25.26 	(i) was homeless;
25.27 	(ii) received relief based on need, as defined in section 168B.07; or
25.28 	(iii) had a household income at or below 50 percent of state median income.

25.29 	Sec. 35. Minnesota Statutes 2006, section 168D.06, is amended to read:
25.30 	168D.06 FUEL LICENSE FEES.
25.31 	License fees paid to the commissioner under the International Fuel Tax Agreement 
25.32 	must be deposited in the highway user tax distribution fund vehicle services operating 
25.33 	account in the special revenue fund under section 299A.705. The commissioner shall 
26.1 	charge an annual fuel license fee of $15, and an annual application filing fee of $13 for 
26.2 	quarterly reporting of fuel tax.

26.3 	Sec. 36. Minnesota Statutes 2006, section 168D.07, is amended to read:
26.4 	168D.07 FUEL DECAL FEE.
26.5 	The commissioner shall issue a decal or other identification to indicate compliance 
26.6 	with the International Fuel Tax Agreement. The commissioner shall establish a charge to 
26.7 	cover the cost of issuing the decal or other identification according to section 16A.1285, 
26.8 	subdivision 4a. Decal or other identification charges paid to the commissioner under this 
26.9 	subdivision must be deposited in the highway user tax distribution fund vehicle services 
26.10 	operating account in the special revenue fund under section 299A.705. 

26.11 	Sec. 37. Minnesota Statutes 2006, section 169.01, subdivision 6, is amended to read:
26.12 		Subd. 6.School bus. "School bus" means a motor vehicle used to transport pupils 
26.13 	to or from a school defined in section 120A.22, or to or from school-related activities, by 
26.14 	the school or a school district, or by someone under an agreement with the school or a 
26.15 	school district. A school bus does not include a motor vehicle transporting children to or 
26.16 	from school for which parents or guardians receive direct compensation from a school 
26.17 	district, a motor coach operating under charter carrier authority, a transit bus providing 
26.18 	services as defined in section 174.22, subdivision 7, a multifunction school activity bus 
26.19 	as defined by federal motor vehicle safety standards, or a vehicle otherwise qualifying 
26.20 	as a type III vehicle under paragraph (5) (6), when the vehicle is properly registered and 
26.21 	insured and being driven by an employee or agent of a school district for nonscheduled or 
26.22 	nonregular transportation. A school bus, including a multifunctional school activity bus,
26.23 	may be type A, type B, type C, or type D, or type III as follows: 
26.24 	(1) A "type A school bus" is a van conversion or bus constructed utilizing a cutaway 
26.25 	front section vehicle with a left-side driver's door. The entrance door is behind the front 
26.26 	wheels. This definition includes two classifications: type A-I, with a gross vehicle weight 
26.27 	rating (GVWR) less than or equal to 10,000 14,500 pounds or less; and type A-II, with a 
26.28 	GVWR greater than 10,000 14,500 pounds and less than or equal to 21,500 pounds.
26.29 	(2) A "type B school bus" is constructed utilizing a stripped chassis. The entrance 
26.30 	door is behind the front wheels. This definition includes two classifications: type B-I, 
26.31 	with a GVWR less than or equal to 10,000 pounds; and type B-II, with a GVWR greater 
26.32 	than 10,000 pounds.
26.33 	(3) A "type C school bus" is constructed utilizing a chassis with a hood and front 
26.34 	fender assembly. The entrance door is behind the front wheels. A type C school bus also 
27.1 	includes a cutaway truck chassis or truck chassis with cab with or without a left side door 
27.2 	and with a GVWR greater than 21,500 pounds.
27.3 	(4) A "type D school bus" is constructed utilizing a stripped chassis. The entrance 
27.4 	door is ahead of the front wheels.
27.5 	(5) A "multifunctional school activity bus" is a school bus that is in conformance 
27.6 	with the federal motor vehicle safety standards, Code of Federal Regulations, title 
27.7 	49, sections 571.3 (definitions), 571.108 (lamps, reflective devices, and associated 
27.8 	equipment), and 571.131 (school bus pedestrian safety devices) and may be painted any 
27.9 	color notwithstanding any law to the contrary, but does not include vehicles classified as 
27.10 	type III school buses according to paragraph (6).
27.11 	(6) Type III school buses and type III Head Start buses are restricted to passenger 
27.12 	cars, station wagons, vans, and buses having a maximum manufacturer's rated seating 
27.13 	capacity of ten or fewer people, including the driver, and a gross vehicle weight rating of 
27.14 	10,000 pounds or less. In this subdivision, "gross vehicle weight rating" means the value 
27.15 	specified by the manufacturer as the loaded weight of a single vehicle. A "type III school 
27.16 	bus" and "type III Head Start bus" must not be outwardly equipped and identified as a type 
27.17 	A, B, C, or D school bus or type A, B, C, or D Head Start bus. A van or bus converted to a 
27.18 	seating capacity of ten or fewer and placed in service on or after August 1, 1999, must 
27.19 	have been originally manufactured to comply with the passenger safety standards.

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

27.21 	Sec. 38. Minnesota Statutes 2006, section 169.01, is amended by adding a subdivision 
27.22 	to read:
27.23 		Subd. 7a.Spotter truck. "Spotter truck" means a truck-tractor with a manufacturer's 
27.24 	certification of origin "not for on-road use" specification, used exclusively for staging or 
27.25 	shuttling trailers in the course of a truck freight operation or freight shipping operation.

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

27.28 	Sec. 39. Minnesota Statutes 2006, section 169.01, subdivision 31, is amended to read:
27.29 		Subd. 31.Roadway. "Roadway" means that portion of a highway improved, 
27.30 	designed, or ordinarily used for vehicular travel, exclusive of the sidewalk or shoulder.
27.31 	During periods when the commissioner allows the use of dynamic shoulder lanes as 
27.32 	defined in subdivision 93, roadway includes that shoulder. In the event a highway includes 
28.1 	two or more separate roadways, the term "roadway" as used herein shall refer to any such 
28.2 	roadway separately but not to all such roadways collectively.

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

28.4 	Sec. 40. Minnesota Statutes 2006, section 169.01, subdivision 55, is amended to read:
28.5 		Subd. 55.Implement of husbandry. "Implement of husbandry" has the meaning 
28.6 	given in section 168A.01, subdivision 8 means a self-propelled or towed vehicle designed 
28.7 	or adapted to be used exclusively for timber-harvesting, agricultural, horticultural, or 
28.8 	livestock-raising operations.

28.9 	Sec. 41. Minnesota Statutes 2006, section 169.01, subdivision 76, is amended to read:
28.10 		Subd. 76.Hazardous materials. "Hazardous materials" means those materials 
28.11 	found to be hazardous for the purposes of the federal Hazardous Materials Transportation 
28.12 	Act and that require the motor vehicle any material that has been designated as hazardous 
28.13 	under United States Code, title 49, section 5103, and is required to be placarded under 
28.14 	Code of Federal Regulations, title 49, parts 100-185 part 172, subpart F, or any quantity of 
28.15 	a material listed as a select agent or toxin in Code of Federal Regulations, title 42, part 73.

28.16 	Sec. 42. Minnesota Statutes 2006, section 169.01, is amended by adding a subdivision 
28.17 	to read:
28.18 		Subd. 93.Dynamic shoulder lane. "Dynamic shoulder lane" means the shoulder 
28.19 	of a freeway on which the commissioner may allow the operation of vehicles during 
28.20 	certain periods.

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

28.22 	Sec. 43. Minnesota Statutes 2006, section 169.01, is amended by adding a subdivision 
28.23 	to read:
28.24 		Subd. 94.Medium-speed electric vehicle. "Medium-speed electric vehicle" 
28.25 	means an electrically powered four-wheeled motor vehicle, equipped with a roll cage 
28.26 	or crushproof body design, that can attain a maximum speed of 35 miles per hour on a 
28.27 	paved level surface, is fully enclosed and has at least one door for entry, has a wheelbase 
28.28 	of 40 inches or greater and a wheel diameter of ten inches or greater, and except with 
28.29 	respect to maximum speed, otherwise meets or exceeds regulations in the Code of Federal 
28.30 	Regulations, title 49, section 571.500, and successor requirements.

29.1 	Sec. 44. Minnesota Statutes 2006, section 169.18, subdivision 5, is amended to read:
29.2 		Subd. 5.Driving left of roadway center; exception. (a) No vehicle shall be driven 
29.3 	to the left side of the center of the roadway in overtaking and passing another vehicle 
29.4 	proceeding in the same direction unless such left side is clearly visible and is free of 
29.5 	oncoming traffic for a sufficient distance ahead to permit such overtaking and passing to 
29.6 	be completely made without interfering with the safe operation of any vehicle approaching 
29.7 	from the opposite direction or any vehicle overtaken. In every event the overtaking 
29.8 	vehicle must return to the right-hand side of the roadway before coming within 100 feet 
29.9 	of any vehicle approaching from the opposite direction.
29.10 	(b) Except on a one-way roadway or as provided in paragraph (c), no vehicle shall, 
29.11 	in overtaking and passing another vehicle or at any other time, be driven to the left half of 
29.12 	the roadway under the following conditions:
29.13 	(1) when approaching the crest of a grade or upon a curve in the highway where the 
29.14 	driver's view along the highway is obstructed within a distance of 700 feet;
29.15 	(2) when approaching within 100 feet of any underpass or tunnel, railroad grade 
29.16 	crossing, intersection within a city, or intersection outside of a city if the presence of the 
29.17 	intersection is marked by warning signs; or
29.18 	(3) where official signs are in place prohibiting passing, or a distinctive centerline 
29.19 	is marked, which distinctive line also so prohibits passing, as declared in the Manual on 
29.20 	Uniform Traffic Control Devices adopted by the commissioner.
29.21 	(c) Paragraph (b) does not apply to a self-propelled or towed implement of 
29.22 	husbandry that (1) is escorted at the front by a registered motor vehicle that is displaying 
29.23 	vehicular hazard warning lights visible to the front and rear in normal sunlight, and (2) 
29.24 	does not extend into the left half of the roadway to any greater extent than made necessary 
29.25 	by the total width of the right half of the roadway together with any adjacent shoulder 
29.26 	that is suitable for travel.
29.27 	(d) Paragraph (b) does not apply to a self-propelled or towed implement of 
29.28 	husbandry that is operated to the left half of the roadway if such operation is not to a 
29.29 	greater extent than is necessary to avoid collision with a parked vehicle, sign, or other 
29.30 	stationary object located on the highway right-of-way.

29.31 	Sec. 45. Minnesota Statutes 2006, section 169.21, is amended by adding a subdivision 
29.32 	to read:
29.33 		Subd. 6.Driver education curriculum. The class D curriculum, in addition to 
29.34 	driver education classroom curriculum prescribed in rules of statutes for class D motor 
30.1 	vehicles, must include instruction on the duties of a driver when encountering a bicycle, 
30.2 	other nonmotorized vehicles, or a pedestrian.

30.3 	Sec. 46. Minnesota Statutes 2006, section 169.224, is amended to read:
30.4 	169.224 NEIGHBORHOOD AND MEDIUM-SPEED ELECTRIC VEHICLES.
30.5 		Subdivision 1.Definition. For purposes of this section, "road authority" means the 
30.6 	commissioner, as to trunk highways; the county board, as to county state-aid highways 
30.7 	and county highways; the town board, as to town roads; and the governing body of 
30.8 	a city, as to city streets. 
30.9 		Subd. 2.Required equipment. Notwithstanding any other law, a neighborhood 
30.10 	electric vehicle or a medium-speed electric vehicle may be operated on public streets and 
30.11 	highways if it meets all equipment and vehicle safety requirements in Code of Federal 
30.12 	Regulations, title 49, section 571.500, and successor requirements. 
30.13 		Subd. 3.Operation. A neighborhood electric vehicle or a medium-speed electric 
30.14 	vehicle may not be operated on a street or highway with a speed limit greater than 35 miles 
30.15 	per hour, except to make a direct crossing of that street or highway. 
30.16 		Subd. 4.Restrictions and prohibitions. (a) A road authority, including the 
30.17 	commissioner of transportation by order, may prohibit or further restrict the operation 
30.18 	of neighborhood electric vehicles and medium-speed electric vehicles on any street or 
30.19 	highway under the road authority's jurisdiction.
30.20 	(b) Neither a neighborhood electric vehicle nor a medium-speed electric vehicle may 
30.21 	not be used to take any examination to demonstrate ability to exercise control in the 
30.22 	operation of a motor vehicle as required under section 171.13.

30.23 	Sec. 47. [169.228] SPOTTER TRUCKS.
30.24 	Notwithstanding any other law, a spotter truck may be operated on public streets 
30.25 	and highways if:
30.26 	(1) the operator has the appropriate class of driver's license;
30.27 	(2) the vehicle complies with the size, weight, and load restrictions under this 
30.28 	chapter;
30.29 	(3) the vehicle meets all inspection requirements under section 169.781; and
30.30 	(4) the vehicle is operated within a zone of two air miles from the truck freight 
30.31 	operation or freight shipping operation where the vehicle is housed.

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

31.1 	Sec. 48. Minnesota Statutes 2006, section 169.306, is amended to read:
31.2 	169.306 USE OF SHOULDERS BY BUSES.
31.3 	(a) The commissioner of transportation may permit the use by transit buses and 
31.4 	metro mobility buses of a shoulder of a freeway or expressway, as defined in section 
31.5 	160.02, in the seven-county metropolitan area.
31.6 	(b) If the commissioner permits the use of a freeway or expressway shoulder by 
31.7 	transit buses, the commissioner shall also permit the use on that shoulder of a bus with a 
31.8 	seating capacity of 40 passengers or more operated by a motor carrier of passengers, as 
31.9 	defined in section 221.011, subdivision 48, while operating in intrastate commerce.
31.10 	(c) Buses authorized to use the shoulder under this section may be operated on the 
31.11 	shoulder only when main line traffic speeds are less than 35 miles per hour. Drivers of 
31.12 	buses being operated on the shoulder may not exceed the speed of main line traffic by 
31.13 	more than 15 miles per hour and may never exceed 35 miles per hour. Drivers of buses 
31.14 	being operated on the shoulder must yield to merging, entering, and exiting traffic and 
31.15 	must yield to other vehicles on the shoulder. Buses operated on the shoulder must be 
31.16 	registered with the Department of Transportation.
31.17 	(d) For the purposes of this section, the term "metro mobility bus" means a motor 
31.18 	vehicle of not less than 20 feet in length engaged in providing special transportation 
31.19 	services under section 473.386 that is:
31.20 	(1) operated by the Metropolitan Council, or operated by a public or private entity 
31.21 	receiving financial assistance from the Metropolitan Council; and
31.22 	(2) authorized by the council to use freeway or expressway shoulders.
31.23 	(e) This section does not apply to the operation of buses on dynamic shoulder lanes.

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

31.25 	Sec. 49. Minnesota Statutes 2006, section 169.346, subdivision 5, is amended to read:
31.26 		Subd. 5.Local ordinance; long-term parking. A statutory or home rule charter 
31.27 	city may enact an ordinance establishing a permit program for long-term disability 
31.28 	parking. If a city enacts the ordinance, a permit program for long-term disability parking 
31.29 	must establish as a minimum:
31.30 	(1) a limitation on disability parking of a maximum of four hours during the hours of 
31.31 	enforcement, on one-hour, 90-minute, and two-hour parking meters;
31.32 	(2) a requirement for city parking lots and ramps to provide a 50 percent discount 
31.33 	on monthly fees for contracted parkers with disabilities or a 50 percent reduction in the 
32.1 	hourly rate for persons with disabilities, with appropriate vehicle identification, who park 
32.2 	in designated disability parking spaces; and
32.3 	(3) issuance of a special needs permit to an employed person with severe disability 
32.4 	for an all-day, on-street parking permit that will accommodate the person's access needs.

32.5 	Sec. 50. Minnesota Statutes 2006, section 169.435, is amended to read:
32.6 	169.435 STATE SCHOOL BUS SAFETY ADMINISTRATION OFFICE OF 
32.7 	PUPIL TRANSPORTATION SAFETY.
32.8 		Subdivision 1.Responsibility; Department of Public Safety. The Department of 
32.9 	Public Safety has the primary responsibility for school transportation safety. The Office of 
32.10 	Pupil Transportation Safety is created as a section under the Division of State Patrol. The 
32.11 	commissioner or the commissioner's designee shall serve as statedesignate a director of 
32.12 	pupil transportation according to subdivision 3.
32.13 		Subd. 3.Pupil transportation safety director. (a) The commissioner of public 
32.14 	safety or the commissioner's designee shall serve as pupil transportation safety director.
32.15 	(b) The duties of the pupil transportation safety director shall include:
32.16 	(1) overseeing all department activities related to school bus safety;
32.17 	(2) assisting in the development, interpretation, and implementation of laws and 
32.18 	policies relating to school bus safety;
32.19 	(3) supervising preparation of the School Bus Inspection Manual; and
32.20 	(4) in conjunction with the Department of Education, assisting school districts in 
32.21 	developing and implementing comprehensive transportation policies;
32.22 	(5) developing and maintaining a consistent record-keeping system to document 
32.23 	school bus inspections, out-of-service school transportation vehicles, and driver files; and
32.24 	(6) conducting periodic audits of selected school districts to determine compliance 
32.25 	with statutory requirements concerning: (i) school bus driver employee background and 
32.26 	license checks; and (ii) duty to report violations to the commissioner of public safety. 
32.27 	Audit results must be documented and retained by the Office of Pupil Transportation 
32.28 	Safety, and any statutory violations documented in the audit must be reported to the 
32.29 	commissioners of public safety and education.
32.30 		Subd. 4.Staff. In addition to the pupil transportation safety director, who must be a 
32.31 	state trooper, the Office of Pupil Transportation Safety must be staffed by a minimum of:
32.32 	(1) three state troopers, each of whom must be assigned to the metropolitan area, 
32.33 	northern Minnesota, or southern Minnesota; and
33.1 	(2) 15 school bus vehicle inspectors, one of whom must be designated chief 
33.2 	inspector. The school bus vehicle inspectors shall perform annual and spot inspections 
33.3 	of school buses and Head Start buses as required by law.

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

33.5 	Sec. 51. Minnesota Statutes 2007 Supplement, section 169.443, subdivision 9, is 
33.6 	amended to read:
33.7 		Subd. 9.Personal cellular phone call prohibition. (a) As used in this subdivision, 
33.8 	"school bus" has the meaning given in section 169.01, subdivision 6. In addition, the term 
33.9 	includes type III school buses as described in section 169.01, subdivision 6, clause (5), 
33.10 	when driven by employees or agents of school districts.
33.11 	(b) A school bus driver may not operate a school bus while communicating over, or 
33.12 	otherwise operating, a cellular phone for personal reasons, whether hand-held or hands 
33.13 	free, when the vehicle is in motion.

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

33.16 	Sec. 52. Minnesota Statutes 2006, section 169.446, subdivision 2, is amended to read:
33.17 		Subd. 2.Driver training programs. The commissioner of public safety shall 
33.18 	adopt rules requiring a minimum of 30 minutes of thorough instruction concerning 
33.19 	section 169.444 for persons enrolled in driver training programs offered at public, private 
33.20 	and parochial schools, and commercial driver training schools. The instruction must 
33.21 	encompass at least the responsibilities of drivers, the content and requirements of section 
33.22 	169.444, and the penalties for violating that section. 

33.23 	Sec. 53. Minnesota Statutes 2006, section 169.67, subdivision 3, is amended to read:
33.24 		Subd. 3.Trailer, semitrailer. (a) No trailer or semitrailer with a gross vehicle
33.25 	weight of 3,000 or more pounds, or a gross weight that exceeds the empty weight of the 
33.26 	towing vehicle, may be drawn on a highway unless it is equipped with brakes that are 
33.27 	adequate to control the movement of and to stop and hold the trailer or semitrailer. A 
33.28 	surge brake on a trailer or semitrailer meets the requirement of this paragraph for brakes 
33.29 	adequate to stop and hold the trailer or semitrailer.
33.30 	(b) No trailer or semitrailer that is required to have brakes and that haswith  a gross 
33.31 	vehicle weight of more than 6,0003,000  pounds may be drawn on a highway unless it is 
34.1 	equipped with brakes that are so constructed that they are adequate to stop and hold the 
34.2 	trailer or semitrailer whenever it becomes detached from the towing vehicle.
34.3 	(c) Except as provided in paragraph (d), paragraph (a) does not apply to:
34.4 	(1) a trailer used by a farmer while transporting farm products produced on the user's 
34.5 	farm, or supplies back to the farm of the trailer's user;
34.6 	(2) a towed custom service vehicle drawn by a motor vehicle that is equipped with 
34.7 	brakes that meet the standards of subdivision 5, provided that such a towed custom service 
34.8 	vehicle that exceeds 30,000 pounds gross weight may not be drawn at a speed of more 
34.9 	than 45 miles per hour;
34.10 	(3) a trailer or semitrailer operated or used by retail dealers of implements of 
34.11 	husbandry while engaged exclusively in the delivery of implements of husbandry;
34.12 	(4) (2) a motor vehicle drawn by another motor vehicle that is equipped with brakes 
34.13 	that meet the standards of subdivision 5; and
34.14 	(5) a tank trailer of not more than 12,000 pounds gross weight owned by a distributor 
34.15 	of liquid fertilizer while engaged exclusively in transporting liquid fertilizer, or gaseous 
34.16 	fertilizer under pressure;
34.17 	(6) a trailer of not more than 12,000 pounds gross weight owned by a distributor of 
34.18 	dry fertilizer while engaged exclusively in the transportation of dry fertilizer; and
34.19 	(7) (3) a disabled vehicle while being towed to a place of repair.
34.20 	(d) Vehicles described in paragraph (c), clauses (1), (3), and (4) clause (2), may be 
34.21 	operated without complying with paragraph (a) only if the trailer or semitrailer does 
34.22 	not exceed the following gross weights:
34.23 	(1) 3,000 pounds while being drawn by a vehicle registered as a passenger 
34.24 	automobile, other than a pickup truck as defined in section  168.011, subdivision 29; 
34.25 	(2) 12,000 pounds while being drawn by any other motor vehicle except a 
34.26 	self-propelled implement of husbandry.

34.27 	Sec. 54. Minnesota Statutes 2006, section 169.685, subdivision 5, is amended to read:
34.28 		Subd. 5.Violation; petty misdemeanor. (a) Every motor vehicle operator, when 
34.29 	transporting a child under the age of foureight on the streets and highways of this state 
34.30 	in a motor vehicle equipped with factory-installed seat belts, shall equip and install for 
34.31 	use in the motor vehicle, according to the manufacturer's instructions, a child passenger 
34.32 	restraint system meeting federal motor vehicle safety standards.
34.33 	(b) No motor vehicle operator who is operating a motor vehicle on the streets and 
34.34 	highways of this state may transport a child under the age of foureight in a seat of a motor 
34.35 	vehicle equipped with a factory-installed seat belt, unless the child is properly fastened 
35.1 	in the child passenger restraint system. Any motor vehicle operator who violates this 
35.2 	subdivision is guilty of a petty misdemeanor and may be sentenced to pay a fine of not 
35.3 	more than $50. The fine maymust be waived or the amount reduced if the motor vehicle 
35.4 	operator produces evidence that within 14 days after the date of the violation a child 
35.5 	passenger restraint system meeting federal motor vehicle safety standards was purchased 
35.6 	or obtained for the exclusive use of the operator.
35.7 	(c) The fines collected for violations of this subdivision must be deposited in the 
35.8 	state treasury and credited to a special account to be known as the Minnesota child 
35.9 	passenger restraint and education account.

35.10 	Sec. 55. Minnesota Statutes 2006, section 169.685, subdivision 6, is amended to read:
35.11 		Subd. 6.Exceptions. (a) This section does not apply to:
35.12 	(1) a person transporting a child in an emergency medical vehicle while in the 
35.13 	performance of official duties and when the physical or medical needs of the child make 
35.14 	the use of a child passenger restraint system unreasonable or when a child passenger 
35.15 	restraint system is not available; and
35.16 	(2) a peace officer transporting a child while in the performance of official duties 
35.17 	and when a child passenger restraint system is not available, provided that a seat belt 
35.18 	must be substituted; and
35.19 	(3) a person while operating a motor vehicle for hire, including a taxi, airport 
35.20 	limousine, and bus, but excluding a rented, leased, or borrowed motor vehicle.
35.21 	(b) A child passenger restraint system is not required for a child who cannot, in the 
35.22 	judgment of a licensed physician, be safely transported in a child passenger restraint 
35.23 	system because of a medical condition, body size, or physical disability. A motor vehicle 
35.24 	operator claiming exemption for a child under this paragraph must possess a typewritten 
35.25 	statement from the physician stating that the child cannot be safely transported in a child 
35.26 	passenger restraint system. The statement must give the name and birth date of the child, 
35.27 	be dated within the previous six months, and be made on the physician's letterhead or 
35.28 	contain the physician's name, address, and telephone number. A person charged with 
35.29 	violating subdivision 5 may not be convicted if the person produces the physician's 
35.30 	statement in court or in the office of the arresting officer.
35.31 	(c) A person offering a motor vehicle for rent or lease shall provide a child passenger 
35.32 	restraint device to a customer renting or leasing the motor vehicle who requests the device. 
35.33 	A reasonable rent or fee may be charged for use of the child passenger restraint device.

35.34 	Sec. 56. Minnesota Statutes 2006, section 169.686, subdivision 1, is amended to read:
36.1 		Subdivision 1.Seat belt requirement. (a) Except as provided in section 169.685, a 
36.2 	properly adjusted and fastened seat belt, including both the shoulder and lap belt when the 
36.3 	vehicle is so equipped, shall be worn by:
36.4 	(1) the driver and passengers of a passenger vehicle or, commercial motor vehicle, 
36.5 	commuter van, as defined in section 168.126, a type III school bus, a type III Head 
36.6 	Start bus, and a vehicle with a gross vehicle weight rating less than 10,000 pounds that 
36.7 	is a pickup truck or van;
36.8 	(2) a passenger riding in the front seat of a passenger vehicle or commercial motor 
36.9 	vehicle; and
36.10 	(3) a passenger riding in any seat of a passenger vehicle who is older than three 
36.11 	but younger than 11 years of age.
36.12 	(b) Except as provided in section 169.685, a person who is 15 years of age or older 
36.13 	and who violates paragraph (a), clause (1) or (2), is subject to a fine of $25. The driver 
36.14 	of the passenger vehicle or commercial motor vehicle in which the violation occurred is 
36.15 	subject to a $25 fine for a each violation of paragraph (a), clause (2) or (3), by the driver or 
36.16 	by a child of the driver passenger  under the age of 15 or any child under the age of 11. 
36.17 	A peace officer may not issue a citation for a violation of this section unless the officer 
36.18 	lawfully stopped or detained the driver of the motor vehicle for a moving violation other 
36.19 	than a violation involving motor vehicle equipment, but the court may not impose more 
36.20 	than one surcharge under section 357.021, subdivision 6, on the driver. The Department of 
36.21 	Public Safety shall not record a violation of this subdivision on a person's driving record.

36.22 	EFFECTIVE DATE. This section is effective June 9, 2008, and applies to acts 
36.23 	committed on or after that date.

36.24 	Sec. 57. Minnesota Statutes 2006, section 169.686, is amended by adding a subdivision 
36.25 	to read:
36.26 		Subd. 1a.Definitions. For the purposes of this section:
36.27 	(1) "Pickup truck" means any truck regardless of manufacturer's nominal rated 
36.28 	carrying capacity and commonly known as a pickup truck.
36.29 	(2) "Van" means any vehicle of a box-like design with no barrier or separation 
36.30 	between the operator's area and the remainder of the cargo-carrying area, or designed to 
36.31 	carry 15 passengers or less, including the driver, regardless of the manufacturer's nominal 
36.32 	rated carrying capacity.

36.33 	Sec. 58. Minnesota Statutes 2006, section 169.686, subdivision 2, is amended to read:
36.34 		Subd. 2.Seat belt exemptions. This section shall not apply to:
37.1 	(1) a person driving a passenger vehicle in reverse;
37.2 	(2) a person riding in a seatvehicle in which all the seating positions equipped with 
37.3 	safety belts are occupied by other persons in safety belts;
37.4 	(3) a person who is in possession of a written certificate from a licensed physician 
37.5 	verifying that because of medical unfitness or physical disability the person is unable 
37.6 	to wear a seat belt;
37.7 	(4) a person who is actually engaged in work that requires the person to alight from 
37.8 	and reenter a motor vehicle at frequent intervals and who, while engaged in that work, 
37.9 	does not drive or travel in that vehicle at a speed exceeding 25 miles per hour;
37.10 	(5) a rural mail carrier of the United States Postal Service while in the performance 
37.11 	of duties;
37.12 	(6) a person driving or riding in a passenger vehicle manufactured before January 1, 
37.13 	1965; and
37.14 	(7) a person driving or riding in a pickup truck, as defined in section 168.011, 
37.15 	subdivision 29, while engaged in normal farming work or activity. 

37.16 	Sec. 59. Minnesota Statutes 2006, section 169.781, subdivision 1, is amended to read:
37.17 		Subdivision 1.Definitions. For purposes of sections 169.781 to 169.783: 
37.18 	(a) "Commercial motor vehicle" means:
37.19 	(1) a commercial motor vehicle as defined in section 169.01, subdivision 75, 
37.20 	paragraph (a); and
37.21 	(2) each vehicle in a combination of more than 26,000 pounds; and
37.22 	(3) a spotter truck.
37.23 	"Commercial motor vehicle" does not include (1) a school bus or Head Start bus 
37.24 	displaying a certificate under section 169.451, (2) a bus operated by the Metropolitan 
37.25 	Council or by a local transit commission created in chapter 458A, or (3) a motor vehicle  
37.26 	that is required to be placarded under Code of Federal Regulations, title 49, parts 100-185. 
37.27 	(b) "Commissioner" means the commissioner of public safety.
37.28 	(c) "Owner" means a person who owns, or has control, under a lease of more than 30 
37.29 	days' duration, of one or more commercial motor vehicles.
37.30 	(d) "Storage semitrailer" means a semitrailer that (1) is used exclusively to store 
37.31 	property at a location not on a street or highway, (2) does not contain any load when 
37.32 	moved on a street or highway, (3) is operated only during daylight hours, and (4) is marked 
37.33 	on each side of the semitrailer "storage only" in letters at least six inches high.
38.1 	(e) "Building mover vehicle" means a vehicle owned or leased by a building mover 
38.2 	as defined in section 221.81, subdivision 1, paragraph (a), and used exclusively for 
38.3 	moving buildings. 

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

38.6 	Sec. 60. Minnesota Statutes 2006, section 169.781, subdivision 2, is amended to read:
38.7 		Subd. 2.Inspection required. It is unlawful for a person to operate or permit 
38.8 	the operation of:
38.9 	(1) a commercial motor vehicle registered in Minnesota or a spotter truck; or
38.10 	(2) special mobile equipment as defined in section 168.011, subdivision 22, and 
38.11 	which is self-propelled, if it is mounted on a commercial motor vehicle chassis, 
38.12 	unless the vehicle displays a valid safety inspection decal issued by an inspector certified 
38.13 	by the commissioner, or the vehicle carries (1) proof that the vehicle complies with 
38.14 	federal motor vehicle inspection requirements for vehicles in interstate commerce, and 
38.15 	(2) a certificate of compliance with federal requirements issued by the commissioner 
38.16 	under subdivision 9.

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

38.19 	Sec. 61. Minnesota Statutes 2006, section 169.79, is amended to read:
38.20 	169.79 VEHICLE REGISTRATION; DISPLAYING LICENSE PLATES.
38.21 		Subdivision 1.Registration required. No person shall operate, drive, or park a 
38.22 	motor vehicle on any highway unless the vehicle is registered in accordance with the laws 
38.23 	of this state and has the number plates or permit confirming that valid registration or 
38.24 	operating authority has been obtained, except as provided in sections 168.10 and 168.12, 
38.25 	subdivision 2f, as assigned to it by the commissioner of public safety, conspicuously 
38.26 	displayed thereon in a manner that the view of any plate or permit is not obstructed. A 
38.27 	plate issued under section 168.27 or a permit issued under chapter 168 may be displayed 
38.28 	on a vehicle in conjunction with expired registration whether or not it displays the license 
38.29 	plate to which the last registration was issued. 
38.30 		Subd. 2.Semitrailer. If the vehicle is a semitrailer, the number plate displayed must 
38.31 	be assigned to the registered owner and correlate to the certificate of title documentation 
38.32 	on file with the department and shall not display a year indicator.
39.1 		Subd. 3.Rear display of single plate. If the vehicle is a motorcycle, motor scooter, 
39.2 	motorized bicycle, motorcycle sidecar, trailer registered at greater than 3,000 pounds 
39.3 	gross vehicle weight (GVW), semitrailer, or vehicle displaying a dealer plate, then one 
39.4 	license plate must be displayed horizontally with the identifying numbers and letters 
39.5 	facing outward from the vehicle and must be mounted in the upright position on the 
39.6 	rear of the vehicle.
39.7 		Subd. 3a.Small trailer. If the vehicle is a trailer with 3,000 pounds or less GVW 
39.8 	with lifetime registration, the numbered plate or sticker must be adhered to the side of the 
39.9 	trailer frame tongue near the hitch.
39.10 		Subd. 4.Collector's vehicle. If the vehicle is (1) a collector's vehicle with a pioneer, 
39.11 	classic car, collector, or street rod license; (2) a vehicle that meets the requirements 
39.12 	of a pioneer, classic, or street rod vehicle except that the vehicle is used for general 
39.13 	transportation purposes; or (3) a vehicle that is of model year 1972 or earlier, not registered 
39.14 	under section 168.10, subdivision 1c, and is used for general transportation purposes, then 
39.15 	one plate must be displayed on the rear of the vehicle, or one plate on the front and one 
39.16 	on the rear, at the discretion of the owner. 
39.17 		Subd. 5.Truck-tractor, road-tractor, or farm truck. If the vehicle is a 
39.18 	truck-tractor, road-tractor, or farm truck, as defined in section 168.011, subdivision 17, but 
39.19 	excluding from that definition semitrailers and trailers, then one plate must be displayed 
39.20 	on the front of the vehicle. 
39.21 		Subd. 6.Other motor vehicles. If the motor vehicle is any kind of motor vehicle 
39.22 	other than those provided for in subdivisions 2 to 4, one plate must be displayed on the 
39.23 	front and one on the rear of the vehicle.
39.24 		Subd. 7.Plate fastened and visible. All plates must be (1) securely fastened so as 
39.25 	to prevent them from swinging, (2) displayed horizontally with the identifying numbers 
39.26 	and letters facing outward from the vehicle, and (3) mounted in the upright position. The 
39.27 	person driving the motor vehicle shall keep the plate legible and unobstructed and free 
39.28 	from grease, dust, or other blurring material so that the lettering is plainly visible at all 
39.29 	times. It is unlawful to cover any assigned letters and numbers or the name of the state 
39.30 	of origin of a license plate with any material whatever, including any clear or colorless 
39.31 	material that affects the plate's visibility or reflectivity.
39.32 		Subd. 8.Plate registration stickers.  As viewed facing the plates:
39.33 	(a) License plates issued to vehicles registered under section 168.017 must display 
39.34 	the month of expiration in the lower left corner as viewed facing the of each plate and the 
39.35 	year of expiration in the lower right corner as viewed facing theof each plate. 
40.1 	(b) License plates issued to vehicles registered under section 168.127 must display 
40.2 	either fleet registration validation stickers in the lower right corner as viewed facing the 
40.3 	plates of each plate or distinctive license plates, issued by the registrar, with "FLEET 
40.4 	REG" displayed on the bottom center portion of theeach plate. 
40.5 	(c) License plates issued after July 1, 2008, requiring validation must display the 
40.6 	month of expiration in the lower left corner of each plate and the year of expiration in the 
40.7 	lower right corner of the plate.
40.8 		Subd. 9.Tax-exempt vehicle marking. Vehicles displaying tax-exempt plates 
40.9 	issued under section 16B.581 or 168.012 must have vehicle markings that comply with 
40.10 	section 168.012, subdivision 1.

40.11 	Sec. 62. Minnesota Statutes 2006, section 169.801, is amended to read:
40.12 	169.801 IMPLEMENT OF HUSBANDRY.
40.13 		Subdivision 1.Exemption from size, weight, load provisions. Except as provided 
40.14 	in this section and section 169.82, the provisions of sections 169.80 to 169.88 that govern 
40.15 	size, weight, and load do not apply to:
40.16 	(1) a horse-drawn wagon while carrying a load of loose straw or hay;
40.17 	(2) a specialized vehicle resembling a low-slung trailer having a short bed or 
40.18 	platform, while transporting one or more implements of husbandry; or
40.19 	(3) an implement of husbandry while being driven or towed at a speed of not 
40.20 	more than 30 miles per hour; provided that this exemption applies to an implement of 
40.21 	husbandry owned, leased, or under the control of a farmer or implement dealer only 
40.22 	while the implement of husbandry is being operated on noninterstate roads or highways 
40.23 	within 75 miles of any farmland or implement dealership: (i) owned, leased, or operated 
40.24 	by the farmer or implement dealer and (ii) on which the farmer or implement dealer 
40.25 	regularly uses or sells or leases the implement of husbandry while operated in compliance 
40.26 	with this section.
40.27 		Subd. 2.Weight per inch of tire width restrictions. (a) An implement of 
40.28 	husbandry that is not self-propelled and is equipped with pneumatic tires may not be 
40.29 	operated on a public highway with a maximum wheel load that exceeds 600 pounds 
40.30 	per inch of tire width before August 1, 1996, and 500 pounds per inch of tire width on 
40.31 	and after August 1, 1996.
40.32 	(b) After December 31, 2009, a person operating or towing an implement of 
40.33 	husbandry on a bridge must comply with the gross weight limitations provided in section 
40.34 	169.824.
41.1 		Subd. 3.Hitches. A towed implement of husbandry must be equipped with (1) 
41.2 	safety chains that meet the requirements of section 169.82, subdivision 3, paragraph 
41.3 	(b); (2) a regulation fifth wheel and kingpin assembly approved by the commissioner of 
41.4 	public safety; or (3) a hitch pin or other hitching device with a retainer that prevents 
41.5 	accidental unhitching.
41.6 		Subd. 4.Bridge posting. Despite subdivision 2, a person operating or towing 
41.7 	an implement of husbandry must comply with a sign that limits the maximum weight 
41.8 	allowed on a bridge.
41.9 		Subd. 5.Height and width. A person operating, towing, or transporting an 
41.10 	implement of husbandry that is higher than 13 feet six inches or wider than allowed under 
41.11 	section 169.80, subdivision 2, must ensure that the operation or transportation does not 
41.12 	damage a highway structure, utility line or structure, or other fixture adjacent to or over 
41.13 	a public highway.
41.14 		Subd. 6.Speed. No person may operate or tow an implement of husbandry at 
41.15 	a speed of more than 30 miles per hour.
41.16 		Subd. 7.Driving rules. (a) An implement of husbandry may not be operated or 
41.17 	towed on an interstate highway.
41.18 	(b) An implement of husbandry may be operated or towed to the left of the center 
41.19 	of a roadway only if it is escorted at the front by a vehicle displaying hazard warning 
41.20 	lights visible in normal sunlight and the operation does not extend into the left half of the 
41.21 	roadway more than is necessary.
41.22 		Subd. 8.Lights. An implement of husbandry must be equipped with lights that 
41.23 	comply with section 169.55, subdivisions 2 and 3.
41.24 		Subd. 9.Slow moving vehicle emblem. An implement of husbandry must comply 
41.25 	with section 169.522.
41.26 		Subd. 10.Brakes. Notwithstanding section 169.67:
41.27 	(a) A self-propelled implement of husbandry must be equipped with brakes adequate 
41.28 	to control its movement and to stop and hold it and any vehicle it is towing.
41.29 	(b) A towed implement of husbandry must be equipped with brakes adequate to 
41.30 	control its movement and to stop and hold it if:
41.31 	(1) it has a gross vehicle weight of more than 24,000 pounds and was manufactured 
41.32 	and sold after January 1, 1994;
41.33 	(2) it has a gross vehicle weight of more than 12,000 pounds and is towed by a 
41.34 	vehicle other than a self-propelled implement of husbandry; or
42.1 	(3) it has a gross vehicle weight of more than 3,000 pounds and is being towed by a 
42.2 	registered passenger automobile other than a pickup truck as defined in section 168.011, 
42.3 	subdivision 29.
42.4 	(c) If a towed implement of husbandry with a gross vehicle weight of more than 
42.5 	6,000 pounds is required under paragraph (b) to have brakes, it must also have brakes 
42.6 	adequate to stop and hold it if it becomes detached from the towing vehicle.

42.7 	Sec. 63. Minnesota Statutes 2006, section 169.82, subdivision 3, is amended to read:
42.8 		Subd. 3.Hitch, chain, or cable. (a) Every trailer or semitrailer must be hitched to 
42.9 	the towing motor vehicle by a device approved by the commissioner of public safety.
42.10 	(b) Every trailer and semitrailer must be equipped with safety chains or cables 
42.11 	permanently attached to the trailer except in cases where the coupling device is a 
42.12 	regulation fifth wheel and kingpin assembly approved by the commissioner of public 
42.13 	safety. In towing, the chains or cables must be attached to the vehicles near the points of 
42.14 	bumper attachments to the chassis of each vehicle, and must be of sufficient strength to 
42.15 	control the trailer in the event of failure of the towing device. The length of chain or cable 
42.16 	must be no more than necessary to permit free turning of the vehicles. A minimum fine 
42.17 	of $25 must be imposed for a violation of this paragraph.
42.18 	(c) This subdivision does not apply to towed implements of husbandry.
42.19 	(d) No person may be charged with a violation of this section solely by reason of 
42.20 	violating a maximum speed prescribed in section 169.145 or169.67 or 169.801.

42.21 	Sec. 64. Minnesota Statutes 2006, section 169.826, subdivision 1a, is amended to read:
42.22 		Subd. 1a.Harvest season increase amount. The limitations provided in sections 
42.23 	169.822 to 169.829 are increased by ten percent from the beginning of harvest to 
42.24 	November 30 each year for the movement of sugar beets, carrots, and potatoes from the 
42.25 	field of harvest to the point of the first unloading. Transfer of the product from a farm 
42.26 	vehicle or small farm trailer, within the meaning of chapter 168, to another vehicle is not 
42.27 	considered to be the first unloading. A permit issued under section 169.86, subdivision 1, 
42.28 	paragraph (a), is required. The commissioner shall not issue permits under this subdivision 
42.29 	if to do so will result in a loss of federal highway funding to the state.

42.30 	Sec. 65. Minnesota Statutes 2006, section 169.85, subdivision 1, is amended to read:
42.31 		Subdivision 1.Driver to stop for weighing. (a) The driver of a vehicle that has 
42.32 	been lawfully stopped may be required by an officer to submit the vehicle and load to a 
42.33 	weighing by means of portable or stationary scales.
43.1 	(b) In addition, the officer may require that the vehicle be driven to the nearest 
43.2 	available scales, but only if:
43.3 	(1) the distance to the scales is no further than five miles, or if the distance from the 
43.4 	point where the vehicle is stopped to the vehicle's destination is not increased by more 
43.5 	than ten miles as a result of proceeding to the nearest available scales; and
43.6 	(2) if the vehicle is a commercial motor vehicle, no more than two other commercial 
43.7 	motor vehicles are waiting to be inspected at the scale.
43.8 	(c) Official traffic control devices as authorized by section 169.06 may be used to 
43.9 	direct the driver to the nearest scale.
43.10 	(d) When a truck weight enforcement operation is conducted by means of portable or 
43.11 	stationary scales, signs giving notice of the operation must be posted within the highway 
43.12 	right-of-way and adjacent to the roadway within two miles of the operation. The driver of 
43.13 	a truck or combination of vehicles registered for or weighing in excess of 12,000 with a 
43.14 	gross vehicle weight exceeding 10,000 pounds shall proceed to the scale site and submit 
43.15 	the vehicle to weighing and inspection.

43.16 	Sec. 66. Minnesota Statutes 2006, section 169.86, is amended by adding a subdivision 
43.17 	to read:
43.18 		Subd. 8.Tow truck. The commissioner may issue permits to an applicant who 
43.19 	pays a single $300 annual fee to cover all tow trucks and towing vehicles owned by the 
43.20 	applicant and meets any other conditions prescribed by the commissioner. The permit 
43.21 	authorizes the tow truck or towing vehicle, when towing a disabled or damaged vehicle to 
43.22 	a place of repair or to a place of safekeeping, to exceed the length and weight limitations 
43.23 	of this chapter. 

43.24 	Sec. 67. [169.865] SPECIAL CANOLA HAULING VEHICLE PERMITS.
43.25 		Subdivision 1.Special three-unit vehicle permit. The commissioner may issue a 
43.26 	permit for a vehicle that meets the following requirements:
43.27 	(1) is a combination of vehicles, including a truck-tractor and a semitrailer 
43.28 	drawing one additional trailer or semitrailer, and no semitrailer used in the three-vehicle 
43.29 	combination has an overall length in excess of 28-1/2 feet;
43.30 	(2) has a maximum gross vehicle weight of 105,500 pounds;
43.31 	(3) complies with the axle weight limits in section 169.824, or with the federal 
43.32 	bridge formula for axle groups not described in that section;
43.33 	(4) complies with the tire weight limits in section 169.823, or the tire manufacturers' 
43.34 	recommended load, whichever is less;
44.1 	(5) is operated only in this state on marked Trunk Highway 175 from Hallock to the 
44.2 	North Dakota border, on U.S. Highway 75 from Hallock to Donaldson, and on marked 
44.3 	Trunk Highway 11 from Donaldson to the North Dakota border; and
44.4 	(6) the seasonal weight increases authorized under section 169.826, subdivision 1, 
44.5 	do not apply.
44.6 		Subd. 2.Restrictions. Vehicles issued permits under subdivision 1 must comply 
44.7 	with the following restrictions:
44.8 	(1) the vehicle must be operated in compliance with seasonal load restrictions under 
44.9 	section 169.87;
44.10 	(2) the vehicle may not be operated on the interstate highway system or national 
44.11 	network highways; and
44.12 	(3) the vehicle may be operated on streets or highways under the control of local 
44.13 	authorities only upon the approval of the local authority; however, vehicles may have 
44.14 	reasonable access to terminals and facilities for food, fuel, repairs, and rest, and for 
44.15 	continuity of route within one mile of the national network as provided by section 169.81, 
44.16 	subdivision 3, and by the Code of Federal Regulations, title 23, part 658.19.
44.17 		Subd. 3.Permit fee; appropriation. Vehicle permits issued under subdivision 
44.18 	1 must be annual permits. The fee is $850 for each vehicle and must be deposited 
44.19 	in the trunk highway fund. An amount sufficient to administer the permit program 
44.20 	is appropriated from the trunk highway fund to the commissioner for the costs of 
44.21 	administering the permit program.

44.22 	Sec. 68. Minnesota Statutes 2006, section 169.87, is amended by adding a subdivision 
44.23 	to read:
44.24 		Subd. 7.Heating fuel vehicles. Weight restrictions imposed by the commissioner 
44.25 	under subdivisions 1 and 2 do not apply to a two-axle or three-axle vehicle that does 
44.26 	not exceed the gross weights allowed in sections 169.823 to 169.824, if the vehicle is 
44.27 	transporting heating oil or liquefied propane gas for heating use only.

44.28 	Sec. 69. Minnesota Statutes 2006, section 169.99, is amended by adding a subdivision 
44.29 	to read:
44.30 		Subd. 1c.Notice of criminal surcharge. All parts of the uniform traffic ticket must 
44.31 	give conspicuous notice of the fact that, if convicted, the person to whom it was issued 
44.32 	must pay a state imposed surcharge under section 357.021, subdivision 6, and the current 
44.33 	amount of the required surcharge.

45.1 	EFFECTIVE DATE. This section is effective July 1, 2008. However, law 
45.2 	enforcement agencies may continue to issue nonconforming tickets until the supply of 
45.3 	those tickets has been exhausted.

45.4 	Sec. 70. Minnesota Statutes 2006, section 169A.03, subdivision 23, is amended to read:
45.5 		Subd. 23.School bus. "School bus" has the meaning given in section 169.01, 
45.6 	subdivision 6. In addition, the term includes type III school buses as described in section 
45.7 	169.01, subdivision 6, clause (5), when driven by employees or agents of school districts.

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

45.10 	Sec. 71. Minnesota Statutes 2006, section 171.01, subdivision 35, is amended to read:
45.11 		Subd. 35.Hazardous materials. "Hazardous materials" means those materials 
45.12 	found to be hazardous for the purposes of the federal Hazardous Materials Transportation 
45.13 	Act and that require the motor vehicleany material that has been designated as hazardous 
45.14 	under United States Code, title 49, section 5103, and is required to be placarded under 
45.15 	Code of Federal Regulations, title 49, parts 100-185 part 172, subpart F, or any quantity of 
45.16 	a material listed as a select agent or toxin in Code of Federal Regulations, title 42, part 73.

45.17 	Sec. 72. Minnesota Statutes 2007 Supplement, section 171.02, subdivision 2, is 
45.18 	amended to read:
45.19 		Subd. 2.Driver's license classifications, endorsements, exemptions. (a) Drivers' 
45.20 	licenses are classified according to the types of vehicles that may be driven by the holder 
45.21 	of each type or class of license. The commissioner may, as appropriate, subdivide the 
45.22 	classes listed in this subdivision and issue licenses classified accordingly.
45.23 	(b) Except as provided in paragraph (c), clauses (1) and (2), and subdivision 2a, no 
45.24 	class of license is valid to operate a motorcycle, school bus, tank vehicle, double-trailer 
45.25 	or triple-trailer combination, vehicle transporting hazardous materials, or bus, unless 
45.26 	so endorsed. There are four general classes of licenses as described in paragraphs (c) 
45.27 	through (f).
45.28 	(c) Class D drivers' licenses are valid for:
45.29 	(1) operating all farm trucks if the farm truck is:
45.30 	(i) controlled and operated by a farmer, including operation by an immediate family 
45.31 	member or an employee of the farmer;
45.32 	(ii) used to transport agricultural products, farm machinery, or farm supplies, 
45.33 	including hazardous materials, to or from a farm;
46.1 	(iii) not used in the operations of a common or contract motor carrier as governed by 
46.2 	Code of Federal Regulations, title 49, part 365; and
46.3 	(iv) used within 150 miles of the farm;
46.4 	(2) notwithstanding paragraph (b), operating an authorized emergency vehicle, 
46.5 	as defined in section 169.01, subdivision 5, whether or not in excess of 26,000 pounds 
46.6 	gross vehicle weight;
46.7 	(3) operating a recreational vehicle as defined in section 168.011, subdivision 25, 
46.8 	that is operated for personal use;
46.9 	(4) operating all single-unit vehicles except vehicles with a gross vehicle weight of 
46.10 	more than 26,000 pounds, vehicles designed to carry more than 15 passengers including 
46.11 	the driver, and vehicles that carry hazardous materials;
46.12 	(5) notwithstanding paragraph (d), operating a type A A-I  school bus or, including  a 
46.13 	multifunctional school activity bus without a school bus endorsement if:
46.14 	(i) the bus has a gross vehicle weight of 10,000 pounds or less;
46.15 	(ii) the bus is designed to transport 15 or fewer passengers, including the driver; and
46.16 	(iii) (ii) the requirements of subdivision 2a are satisfied, as determined by the 
46.17 	commissioner;
46.18 	(6) operating any vehicle or combination of vehicles when operated by a licensed 
46.19 	peace officer while on duty; and
46.20 	(7) towing vehicles if:
46.21 	(i) the towed vehicles have a gross vehicle weight of 10,000 pounds or less; or
46.22 	(ii) the towed vehicles have a gross vehicle weight of more than 10,000 pounds and 
46.23 	the combination of vehicles has a gross vehicle weight of 26,000 pounds or less.
46.24 	(d) Class C drivers' licenses are valid for:
46.25 	(1) operating class D motor vehicles;
46.26 	(2) with a hazardous materials endorsement, transporting hazardous materials in
46.27 	operating class D vehicles to transport hazardous materials; and
46.28 	(3) with a passenger endorsement, operating buses; and 
46.29 	(4) with a passenger endorsement and school bus endorsement, operating school 
46.30 	buses designed to transport 15 or fewer passengers, including the driver.
46.31 	(e) Class B drivers' licenses are valid for:
46.32 	(1) operating all class C motor vehicles, class D motor vehicles, and all other 
46.33 	single-unit motor vehicles including, with a passenger endorsement, buses; and
46.34 	(2) towing only vehicles with a gross vehicle weight of 10,000 pounds or less.
46.35 	(f) Class A drivers' licenses are valid for operating any vehicle or combination of 
46.36 	vehicles.

47.1 	EFFECTIVE DATE. The amendments to paragraph (c) in this section are effective 
47.2 	retroactively to January 1, 2008.

47.3 	Sec. 73. Minnesota Statutes 2007 Supplement, section 171.02, subdivision 2a, is 
47.4 	amended to read:
47.5 		Subd. 2a.Exception for certain school bus drivers. Notwithstanding subdivision 
47.6 	2, paragraph (c), the holder of a class D driver's license, without a school bus endorsement, 
47.7 	may operate a type A school bus, including a multifunctional school activity bus,
47.8 	described in subdivision 2, paragraph (b), under the following conditions:
47.9 	(a) The operator is an employee of the entity that owns, leases, or contracts for the 
47.10 	school bus and is not solely hired to provide transportation services under this subdivision.
47.11 	(b) The operator drives the school bus only from points of origin to points of 
47.12 	destination, not including home-to-school trips to pick up or drop off students.
47.13 	(c) The operator is prohibited from using the an eight-light system. Violation of 
47.14 	this paragraph is a misdemeanor.
47.15 	(d) The operator's employer has adopted and implemented a policy that provides for 
47.16 	annual training and certification of the operator in:
47.17 	(1) safe operation of the type of school bus the operator will be driving;
47.18 	(2) understanding student behavior, including issues relating to students with 
47.19 	disabilities;
47.20 	(3) encouraging orderly conduct of students on the bus and handling incidents of 
47.21 	misconduct appropriately;
47.22 	(4) knowing and understanding relevant laws, rules of the road, and local school 
47.23 	bus safety policies;
47.24 	(5) handling emergency situations; and
47.25 	(6) safe loading and unloading of students.
47.26 	(e) A background check or background investigation of the operator has been 
47.27 	conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03
47.28 	for teachers; section 144.057 or chapter 245C for day care employees; or section 171.321, 
47.29 	subdivision 3, for all other persons operating a type A school bus vehicle under this 
47.30 	subdivision.
47.31 	(f) Operators shall submit to a physical examination as required by section 171.321, 
47.32 	subdivision 2.
47.33 	(g) The operator's driver's license is verified annually by the entity that owns, leases, 
47.34 	or contracts for the school bus vehicle.
48.1 	(h) A person who sustains a conviction, as defined under section 609.02, of violating 
48.2 	section 169A.25, 169A.26, 169A.27, 169A.31, 169A.51, or 169A.52, or a similar statute 
48.3 	or ordinance of another state is precluded from operating a school bus for five years 
48.4 	from the date of conviction.
48.5 	(i) A person who has ever been convicted of a disqualifying offense as defined in 
48.6 	section 171.3215, subdivision 1, paragraph (c), may not operate a school bus under this 
48.7 	subdivision.
48.8 	(j) A person who sustains a conviction, as defined under section 609.02, of a fourth 
48.9 	moving offense in violation of chapter 169 is precluded from operating a school bus for 
48.10 	one year from the date of the last conviction.
48.11 	(k) Students riding the school bus vehicle must have training required under section 
48.12 	123B.90, subdivision 2.
48.13 	(l) An operator must be trained in the proper use of child safety restraints as set 
48.14 	forth in the National Highway Traffic Safety Administration's "Guideline for the Safe 
48.15 	Transportation of Pre-school Age Children in School Buses," if child safety restraints are 
48.16 	used by the passengers.
48.17 	(m) Annual certification of the requirements listed in this subdivision must be 
48.18 	maintained under separate file at the business location for each operator licensed under 
48.19 	this subdivision and subdivision 2, paragraph (b), clause (5). The business manager, 
48.20 	school board, governing body of a nonpublic school, or any other entity that owns, 
48.21 	leases, or contracts for the school bus operating under this subdivision is responsible 
48.22 	for maintaining these files for inspection.
48.23 	(n) The school bus vehicle must bear a current certificate of inspection issued under 
48.24 	section 169.451.
48.25 	(o) If the word "School" appears on the front and rear of the bus, the word "School"
48.26 	must be covered by a sign that reads "Activities" when the bus is being operated under 
48.27 	authority of this subdivision.

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

48.29 	Sec. 74. Minnesota Statutes 2006, section 171.02, is amended by adding a subdivision 
48.30 	to read:
48.31 		Subd. 2b.Exception for type III school bus drivers. (a) Notwithstanding 
48.32 	subdivision 2, paragraph (c), the holder of a class D driver's license, without a school bus 
48.33 	endorsement, may operate a type III school bus described in section 169.01, subdivision 6, 
48.34 	clause (5), under the conditions in paragraphs (b) through (n).
49.1 	(b) The operator is an employee of the entity that owns, leases, or contracts for 
49.2 	the school bus.
49.3 	(c) The operator's employer has adopted and implemented a policy that provides for 
49.4 	annual training and certification of the operator in:
49.5 	(1) safe operation of a type III school bus;
49.6 	(2) understanding student behavior, including issues relating to students with 
49.7 	disabilities;
49.8 	(3) encouraging orderly conduct of students on the bus and handling incidents of 
49.9 	misconduct appropriately;
49.10 	(4) knowing and understanding relevant laws, rules of the road, and local school 
49.11 	bus safety policies;
49.12 	(5) handling emergency situations;
49.13 	(6) proper use of seat belts and child safety restraints;
49.14 	(7) performance of pretrip vehicle inspections; and
49.15 	(8) safe loading and unloading of students, including, but not limited to:
49.16 	(i) utilizing a safe location for loading and unloading students at the curb, on the 
49.17 	nontraffic side of the roadway, or at off-street loading areas, driveways, yards, and other 
49.18 	areas to enable the student to avoid hazardous conditions;
49.19 	(ii) refraining from loading and unloading students in a vehicular traffic lane, on the 
49.20 	shoulder, in a designated turn lane, or a lane adjacent to a designated turn lane;
49.21 	(iii) avoiding a loading or unloading location that would require a pupil to cross a 
49.22 	road, or ensuring that the driver or an aide personally escort the pupil across the road if 
49.23 	it is not reasonably feasible to avoid such a location; and
49.24 	(iv) placing the type III school bus in "park" during loading and unloading.
49.25 	(d) A background check or background investigation of the operator has been 
49.26 	conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03
49.27 	for school district employees; section 144.057 or chapter 245C for day care employees; 
49.28 	or section 171.321, subdivision 3, for all other persons operating a type A or type III 
49.29 	school bus under this subdivision.
49.30 	(e) Operators shall submit to a physical examination as required by section 171.321, 
49.31 	subdivision 2.
49.32 	(f) The operator's employer has adopted and implemented a policy that provides 
49.33 	for mandatory drug and alcohol testing of applicants for operator positions and current 
49.34 	operators, in accordance with section 181.951, subdivisions 2, 4, and 5.
49.35 	(g) The operator's driver's license is verified annually by the entity that owns, leases, 
49.36 	or contracts for the school bus.
50.1 	(h) A person who sustains a conviction, as defined under section 609.02, of violating 
50.2 	section 169A.25, 169A.26, 169A.27, or 169A.31, or whose driver's license is revoked 
50.3 	under sections 169A.50 to 169A.53 of the implied consent law, or who is convicted of or 
50.4 	has their driver's license revoked under a similar statute or ordinance of another state, is 
50.5 	precluded from operating a type III school bus for five years from the date of conviction.
50.6 	(i) A person who has ever been convicted of a disqualifying offense as defined in 
50.7 	section 171.3215, subdivision 1, paragraph (c), may not operate a type III school bus 
50.8 	under this subdivision.
50.9 	(j) A person who sustains a conviction, as defined under section 609.02, of a moving 
50.10 	offense in violation of chapter 169 within three years of the first of three other moving 
50.11 	offenses is precluded from operating a type III school bus for one year from the date of 
50.12 	the last conviction.
50.13 	(k) An operator who sustains a conviction as described in paragraph (h), (i), or (j) 
50.14 	while employed by the entity that owns, leases, or contracts for the school bus, shall report 
50.15 	the conviction to the employer within ten days of the date of the conviction.
50.16 	(l) Students riding the type III school bus must have training required under section 
50.17 	123B.90, subdivision 2.
50.18 	(m) Documentation of meeting the requirements listed in this subdivision must 
50.19 	be maintained under separate file at the business location for each type III school bus 
50.20 	operator. The business manager, school board, governing body of a nonpublic school, or 
50.21 	any other entity that owns, leases, or contracts for the type III school bus operating under 
50.22 	this subdivision is responsible for maintaining these files for inspection.
50.23 	(n) The type III school bus must bear a current certificate of inspection issued under 
50.24 	section 169.451.
50.25 	(o) An operator employed by a school or school district, whose normal duties do 
50.26 	not include operating a type III school bus, who holds a class D driver's license without a 
50.27 	school bus endorsement, may operate a type III school bus and is exempt from paragraphs 
50.28 	(d), (e), (f), (g), and (k).

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

50.30 	Sec. 75. Minnesota Statutes 2006, section 171.03, is amended to read:
50.31 	171.03 PERSONS EXEMPT.
50.32 	The following persons are exempt from license hereunder:
51.1 	(a) A person in the employ or service of the United States federal government is 
51.2 	exempt while driving or operating a motor vehicle owned by or leased to the United 
51.3 	States federal government.
51.4 	(b) A person in the employ or service of the United States federal government is 
51.5 	exempt from the requirement to possess a valid class A, class B, or class C commercial 
51.6 	driver's license while driving or operating for military purposes a commercial motor 
51.7 	vehicle owned by or leased to for the United States federal government if the person is:
51.8 	(1) on active duty in the U. S. Coast Guard;
51.9 	(2) on active duty in a branch of the U. S. Armed Forces, which includes the Army, 
51.10 	Air Force, Navy, and Marine Corps;
51.11 	(3) a member of a reserve component of the U. S. Armed Forces; or
51.12 	(4) on active duty in the Army National Guard or Air National Guard, which 
51.13 	includes (i) a member on full-time National Guard duty, (ii) a member undergoing 
51.14 	part-time National Guard training, and (iii) a National Guard military technician, who is a 
51.15 	civilian required to wear a military uniform.
51.16 	The exemption provided under this paragraph does not apply to a U. S. Armed Forces 
51.17 	Reserve technician.
51.18 	(c) Any person while driving or operating any farm tractor or implement of 
51.19 	husbandry temporarily on a highway is exempt. For purposes of this section, an all-terrain 
51.20 	vehicle, as defined in section 84.92, subdivision 8, an off-highway motorcycle, as defined 
51.21 	in section 84.787, subdivision 7, and an off-road vehicle, as defined in section 84.797, 
51.22 	subdivision 7, are not implements of husbandry.
51.23 	(d) A nonresident who is at least 15 years of age and who has in immediate 
51.24 	possession a valid driver's license issued to the nonresident in the home state or country 
51.25 	may operate a motor vehicle in this state only as a driver.
51.26 	(e) A nonresident who has in immediate possession a valid commercial driver's 
51.27 	license issued by a state or jurisdiction in accordance with the standards of Code of 
51.28 	Federal Regulations, title 49, part 383, and who is operating in Minnesota the class of 
51.29 	commercial motor vehicle authorized by the issuing state or jurisdiction is exempt.
51.30 	(f) Any nonresident who is at least 18 years of age, whose home state or country does 
51.31 	not require the licensing of drivers may operate a motor vehicle as a driver, but only for a 
51.32 	period of not more than 90 days in any calendar year, if the motor vehicle so operated is 
51.33 	duly registered for the current calendar year in the home state or country of the nonresident.
51.34 	(g) Any person who becomes a resident of the state of Minnesota and who has in 
51.35 	possession a valid driver's license issued to the person under and pursuant to the laws of 
51.36 	some other state or jurisdiction or by military authorities of the United States may operate 
52.1 	a motor vehicle as a driver, but only for a period of not more than 60 days after becoming 
52.2 	a resident of this state, without being required to have a Minnesota driver's license as 
52.3 	provided in this chapter.
52.4 	(h) Any person who becomes a resident of the state of Minnesota and who has in 
52.5 	possession a valid commercial driver's license issued by another state or jurisdiction in 
52.6 	accordance with the standards of Code of Federal Regulations, title 49, part 383, is exempt 
52.7 	for not more than 30 days after becoming a resident of this state.
52.8 	(i) Any person operating a snowmobile, as defined in section 84.81, is exempt.

52.9 	Sec. 76. Minnesota Statutes 2006, section 171.05, subdivision 2b, is amended to read:
52.10 		Subd. 2b.Instruction permit use by person under age 18. (a) This subdivision 
52.11 	applies to persons who have applied for and received an instruction permit under 
52.12 	subdivision 2.
52.13 	(b) The permit holder may, with the permit in possession, operate a motor vehicle, 
52.14 	but must be accompanied by and be under the supervision of a certified driver education 
52.15 	instructor, the permit holder's parent or guardian, or another licensed driver age 21 or 
52.16 	older. The supervisor must occupy the seat beside the permit holder.
52.17 	(c) The permit holder may operate a motor vehicle only when every occupant under 
52.18 	the age of 18 has a seat belt or child passenger restraint system properly fastened. A 
52.19 	person who violates this paragraph is subject to a fine of $25. A peace officer may 
52.20 	not issue a citation for a violation of this paragraph unless the officer lawfully stopped 
52.21 	or detained the driver of the motor vehicle for a moving violation as defined in section 
52.22 	171.04, subdivision 1. The commissioner shall not record a violation of this paragraph on 
52.23 	a person's driving record.
52.24 	(d) The permit holder may not operate a vehicle while communicating over, or 
52.25 	otherwise operating, a cellular or wireless telephone, whether handheld or hands free, 
52.26 	when the vehicle is in motion. The permit holder may assert as an affirmative defense that 
52.27 	the violation was made for the sole purpose of obtaining emergency assistance to prevent 
52.28 	a crime about to be committed, or in the reasonable belief that a person's life or safety 
52.29 	was in danger. Violation of this paragraph is a petty misdemeanor subject to section 
52.30 	169.89, subdivision 2.
52.31 	(e) (d) The permit holder must maintain a driving record free of convictions for 
52.32 	moving violations, as defined in section 171.04, subdivision 1, and free of convictions 
52.33 	for violation of section 169A.20, 169A.33, 169A.35, or sections 169A.50 to 169A.53. If 
52.34 	the permit holder drives a motor vehicle in violation of the law, the commissioner shall 
52.35 	suspend, cancel, or revoke the permit in accordance with the statutory section violated.

53.1 	EFFECTIVE DATE. This section is effective June 9, 2008, and applies to acts 
53.2 	committed on or after that date.

53.3 	Sec. 77. Minnesota Statutes 2006, section 171.055, subdivision 2, is amended to read:
53.4 		Subd. 2.Use of provisional license. (a) A provisional license holder may operate a 
53.5 	motor vehicle only when every occupant under the age of 18 has a seat belt or child 
53.6 	passenger restraint system properly fastened. A person who violates this paragraph is 
53.7 	subject to a fine of $25. A peace officer may not issue a citation for a violation of this 
53.8 	paragraph unless the officer lawfully stopped or detained the driver of the motor vehicle 
53.9 	for a moving violation as defined in section 171.04. The commissioner shall not record a 
53.10 	violation of this paragraph on a person's driving record.
53.11 	(b) A provisional license holder may not operate a vehicle while communicating 
53.12 	over, or otherwise operating, a cellular or wireless telephone, whether handheld or 
53.13 	hands free, when the vehicle is in motion. The provisional license holder may assert 
53.14 	as an affirmative defense that the violation was made for the sole purpose of obtaining 
53.15 	emergency assistance to prevent a crime about to be committed, or in the reasonable 
53.16 	belief that a person's life or safety was in danger. Violation of this paragraph is a petty 
53.17 	misdemeanor subject to section 169.89, subdivision 2.
53.18 	(c) (b) If the holder of a provisional license during the period of provisional licensing 
53.19 	incurs (1) a conviction for a violation of section 169A.20, 169A.33, 169A.35, or sections 
53.20 	169A.50 to 169A.53, (2) a conviction for a crash-related moving violation, or (3) more 
53.21 	than one conviction for a moving violation that is not crash related, the person may not be 
53.22 	issued a driver's license until 12 consecutive months have expired since the date of the 
53.23 	conviction or until the person reaches the age of 18 years, whichever occurs first.
53.24 	(c)  For the first six months of provisional licensure, a provisional license holder may 
53.25 	not operate a motor vehicle carrying more than one passenger under the age of 20 years 
53.26 	who is not a member of the holder's immediate family. For the second six months, the 
53.27 	holder of the license may not operate a motor vehicle that is carrying more than three 
53.28 	passengers who are under the age of 20 years and who are not members of the holder's 
53.29 	immediate family.
53.30 	(d) For the first six months of provisional licensure, a provisional license holder 
53.31 	may operate a motor vehicle between the hours of midnight and 5:00 a.m. only when 
53.32 	the license holder is:
53.33 	(1) driving between the license holder's home and place of employment;
53.34 	(2) driving between the license holder's home and a school event for which the 
53.35 	school has not provided transportation;
54.1 	(3) driving for employment purposes; or
54.2 	(4) accompanied by a licensed driver at least 25 years of age.

54.3 	EFFECTIVE DATE. The amendments to paragraph (a) are effective June 9, 2008, 
54.4 	and apply to acts committed on and after that date.

54.5 	Sec. 78. Minnesota Statutes 2006, section 171.13, subdivision 1, is amended to read:
54.6 		Subdivision 1.Examination subjects and locations; provisions for color 
54.7 	blindness, disabled veterans. Except as otherwise provided in this section, the 
54.8 	commissioner shall examine each applicant for a driver's license by such agency as the 
54.9 	commissioner directs. This examination must include a test of applicant's eyesight; ability 
54.10 	to read and understand highway signs regulating, warning, and directing traffic; knowledge 
54.11 	of traffic laws; knowledge of the effects of alcohol and drugs on a driver's ability to operate 
54.12 	a motor vehicle safely and legally, and of the legal penalties and financial consequences 
54.13 	resulting from violations of laws prohibiting the operation of a motor vehicle while under 
54.14 	the influence of alcohol or drugs; knowledge of railroad grade crossing safety; knowledge 
54.15 	of slow-moving vehicle safety; knowledge of laws relating to pupil transportation safety, 
54.16 	including the significance of school bus lights, signals, stop arm, and passing a school 
54.17 	bus; knowledge of traffic laws related to bicycles; an actual demonstration of ability to 
54.18 	exercise ordinary and reasonable control in the operation of a motor vehicle; and other 
54.19 	physical and mental examinations as the commissioner finds necessary to determine the 
54.20 	applicant's fitness to operate a motor vehicle safely upon the highways, provided, further 
54.21 	however, no driver's license shall be denied an applicant on the exclusive grounds that the 
54.22 	applicant's eyesight is deficient in color perception. Provided, however, that war veterans 
54.23 	operating motor vehicles especially equipped for disabled persons, shall, if otherwise 
54.24 	entitled to a license, be granted such license. The commissioner shall make provision for 
54.25 	giving these examinations either in the county where the applicant resides or at a place 
54.26 	adjacent thereto reasonably convenient to the applicant.

54.27 	Sec. 79. Minnesota Statutes 2006, section 171.13, is amended by adding a subdivision 
54.28 	to read:
54.29 		Subd. 1i.Pupil transportation safety. The commissioner shall include in each 
54.30 	edition of the driver's manual a section relating to pupil transportation safety laws.

54.31 	Sec. 80. Minnesota Statutes 2006, section 171.165, subdivision 2, is amended to read:
54.32 		Subd. 2.Implied consent revocation. The commissioner shall disqualify a person 
54.33 	from operating commercial motor vehicles for a revocation under section 169A.52 or a 
55.1 	statute or ordinance from another state or jurisdiction in conformity with it, in accordance 
55.2 	with for a period that is equivalent in duration under the driver disqualifications and 
55.3 	penalties in Code of Federal Regulations, title 49, part 383, subpart D, that pertain to a 
55.4 	conviction of being under the influence of alcohol or refusal to be tested.

55.5 	Sec. 81. [171.168] NOTIFICATION OF CONVICTION FOR VIOLATION BY 
55.6 	COMMERCIAL DRIVER.
55.7 	(a) Each person who operates a commercial motor vehicle, who has a commercial 
55.8 	driver's license issued by this state, and who is convicted of a criminal offense; of a serious 
55.9 	traffic violation, as defined in Code of Federal Regulations, title 49, section 383.5; or of 
55.10 	violating any other state or local law relating to motor vehicle traffic control, other than a 
55.11 	parking violation, in any type of motor vehicle in another state or jurisdiction, shall notify 
55.12 	the department's Division of Driver and Vehicle Services of the conviction. The person 
55.13 	shall notify the division within 30 days after the date that the person was convicted.
55.14 	(b) Each person who operates a commercial motor vehicle, who has a commercial 
55.15 	driver's license issued by this state, and who is convicted of violating, in any type of 
55.16 	motor vehicle, a Minnesota state or local law relating to motor vehicle traffic control, 
55.17 	other than a parking violation, shall notify the person's employer of the conviction. The 
55.18 	person shall notify the person's employer within 30 days after the date that the person was 
55.19 	convicted. If the person is not currently employed, the person shall notify the division 
55.20 	according to paragraph (a).
55.21 	(c) Notification to the division must be made in writing and contain the following 
55.22 	information:
55.23 	(1) the driver's full name; 
55.24 	(2) the driver's license number; 
55.25 	(3) the date of conviction; 
55.26 	(4) the specific criminal or other offense; serious traffic violation, as defined in Code 
55.27 	of Federal Regulations, title 49, section 383.5; and any other violation of state or local 
55.28 	law relating to motor vehicle traffic control, for which the person was convicted and 
55.29 	any suspension, revocation, or cancellation of certain driving privileges that resulted 
55.30 	from the conviction; 
55.31 	(5) an indication whether the violation was in a commercial motor vehicle; 
55.32 	(6) the location of the offense; and 
55.33 	(7) the driver's signature. 

56.1 	Sec. 82. [171.169] NOTIFICATION OF SUSPENSION OF LICENSE OF 
56.2 	COMMERCIAL DRIVER.
56.3 	Each employee, as defined in Code of Federal Regulations, title 49, section 383.5, 
56.4 	who has a Minnesota-issued driver's license suspended, revoked, or canceled by this 
56.5 	state or another state or jurisdiction, who loses the right to operate a commercial motor 
56.6 	vehicle in this state or another state or jurisdiction for any period, or who is disqualified 
56.7 	from operating a commercial motor vehicle for any period, shall notify the person's 
56.8 	employer of the suspension, revocation, cancellation, lost privilege, or disqualification. 
56.9 	The employee shall notify the employer before the end of the business day following 
56.10 	the day the employee received notice of the suspension, revocation, cancellation, lost 
56.11 	privilege, or disqualification. 

56.12 	Sec. 83. Minnesota Statutes 2006, section 171.18, subdivision 1, is amended to read:
56.13 		Subdivision 1.Offenses. (a) The commissioner may suspend the license of a driver 
56.14 	without preliminary hearing upon a showing by department records or other sufficient 
56.15 	evidence that the licensee:
56.16 	(1) has committed an offense for which mandatory revocation of license is required 
56.17 	upon conviction;
56.18 	(2) has been convicted by a court for violating a provision of chapter 169 or 
56.19 	an ordinance regulating traffic, other than a conviction for a petty misdemeanor, and 
56.20 	department records show that the violation contributed in causing an accident resulting in 
56.21 	the death or personal injury of another, or serious property damage;
56.22 	(3) is an habitually reckless or negligent driver of a motor vehicle;
56.23 	(4) is an habitual violator of the traffic laws;
56.24 	(5) is incompetent to drive a motor vehicle as determined in a judicial proceeding;
56.25 	(6) has permitted an unlawful or fraudulent use of the license;
56.26 	(7) has committed an offense in another state that, if committed in this state, would 
56.27 	be grounds for suspension;
56.28 	(8) has committed a violation of section 169.444, subdivision 2, paragraph (a), 
56.29 	within five years of a prior conviction under that section;
56.30 	(9) has committed a violation of section 171.22, except that the commissioner may 
56.31 	not suspend a person's driver's license based solely on the fact that the person possessed a 
56.32 	fictitious or fraudulently altered Minnesota identification card;
56.33 	(10) has failed to appear in court as provided in section 169.92, subdivision 4;
56.34 	(11) has failed to report a medical condition that, if reported, would have resulted in 
56.35 	cancellation of driving privileges;
57.1 	(12) has been found to have committed an offense under section 169A.33; or
57.2 	(13) has paid or attempted to pay a fee required under this chapter for a license or 
57.3 	permit by means of a dishonored check issued to the state or a driver's license agent, 
57.4 	which must be continued until the registrar determines or is informed by the agent that the 
57.5 	dishonored check has been paid in full; or
57.6 	(14) who, as owner or owners of a vehicle whose taxes or fees required under 
57.7 	chapter 168, 168A, or 297B, were due, paid or attempted to pay, or had another person pay 
57.8 	or attempt to pay, the vehicle taxes or fees required under chapter 168, 168A, or 297B, 
57.9 	by means of a dishonored personal check issued to the state or a deputy registrar, which 
57.10 	must be continued until the registrar determines or is informed by the deputy registrar that 
57.11 	the dishonored check has been paid in full.
57.12 	However, an action taken by the commissioner under clause (2) or (5) must conform to 
57.13 	the recommendation of the court when made in connection with the prosecution of the 
57.14 	licensee.
57.15 	(b) The commissioner may not suspend the driver's license of an individual under 
57.16 	paragraph (a) who was convicted of a violation of section 171.24, subdivision 1, whose 
57.17 	license was under suspension at the time solely because of the individual's failure to 
57.18 	appear in court or failure to pay a fine.

57.19 	Sec. 84. Minnesota Statutes 2006, section 171.24, is amended by adding a subdivision 
57.20 	to read:
57.21 		Subd. 1a.Driving after suspension for failure to appear or pay fines; 
57.22 	misdemeanor. A person is guilty of a misdemeanor if:
57.23 	(1) the person's driver's license or driving privilege has been suspended solely for 
57.24 	the purpose of unpaid fines or failure to appear in court;
57.25 	(2) the person has been given notice of or reasonably should know of the suspension; 
57.26 	and
57.27 	(3) the person disobeys the order by operating in this state any motor vehicle, the 
57.28 	operation of which requires a driver's license, while the person's license or privilege 
57.29 	is suspended.

57.30 	Sec. 85. Minnesota Statutes 2006, section 171.29, subdivision 1, is amended to read:
57.31 		Subdivision 1.Examination required. No person whose driver's license has been 
57.32 	revoked by reason of conviction, plea of guilty, or forfeiture of bail not vacated, under 
57.33 	section 169.791, 169.797, or171.17, or 171.172, or revoked under section 169.792
57.34 	or 169A.52 shall be issued another license unless and until that person shall have 
58.1 	successfully passed an examination as required by the commissioner of public safety. 
58.2 	This subdivision does not apply to an applicant for early reinstatement under section 
58.3 	169.792, subdivision 7a.

58.4 	Sec. 86. Minnesota Statutes 2006, section 171.321, subdivision 5, is amended to read:
58.5 		Subd. 5.Annual evaluation and license verification. (a) A school district, 
58.6 	nonpublic school, or private contractor shall provide in-service training annually to each 
58.7 	school bus driver.
58.8 	(b) A school district, nonpublic school, or private contractor shall annually verify 
58.9 	the validity of the driver's license of each employee who regularly transports students for 
58.10 	the district in a type A school bus, a type B school bus, a type C school bus, or type D 
58.11 	school bus, whether or not that bus is a multifunctional school activity bus, or regularly 
58.12 	transports students for the district in a type III vehicle with the National Driver Register 
58.13 	or with the Department of Public Safety.

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

58.15 	Sec. 87. Minnesota Statutes 2006, section 174.02, subdivision 2, is amended to read:
58.16 		Subd. 2.Unclassified positions. The commissioner may establish up to four 
58.17 	positions in the unclassified service at the deputy and assistant commissioner, assistant to 
58.18 	commissioner or personal secretary levels. No more than two of these positions shall be 
58.19 	at the deputy commissioner level. The commissioner or a deputy commissioner must be 
58.20 	licensed as a professional engineer under section 326.02, and serve as chief engineer.

58.21 	Sec. 88. Minnesota Statutes 2006, section 174.03, subdivision 1, is amended to read:
58.22 		Subdivision 1.Statewide transportation plan; priorities; schedule of 
58.23 	expenditures. In order to best meet the present and future transportation needs of 
58.24 	the public, to insure a strong state economy, to make most efficient use of public and 
58.25 	private funds, and to promote the more efficient use of energy and other resources for 
58.26 	transportation purposes, the commissioner shall:
58.27 	(1) three months after notification that the department is ready to commence 
58.28 	operations and prior to the drafting of the statewide transportation plan, hold public 
58.29 	hearings as may be appropriate solely for the purpose of receiving suggestions for future 
58.30 	transportation alternatives and priorities for the state. The Metropolitan Council, regional 
58.31 	development commissions, and port authorities shall appear at the hearings and submit 
58.32 	information concerning transportation-related planning undertaken and accomplished by 
58.33 	these agencies. Other political subdivisions may appear and submit such information at 
59.1 	the hearings. These hearings shall be completed no later than six months from the date of 
59.2 	the commissioner's notification;
59.3 	(2) develop, adopt, revise, and monitor a statewide transportation plan, taking into 
59.4 	account the suggestions and information submitted at the public hearings held pursuant 
59.5 	to clause (1). The plan shall incorporate all modes of transportation and provide for the 
59.6 	interconnection and coordination of different modes of transportation. The commissioner 
59.7 	shall evaluate alternative transportation programs and facilities proposed for inclusion 
59.8 	in the plan in terms of economic costs and benefits, safety aspects, impact on present 
59.9 	and planned land uses, environmental effects, energy efficiency, national transportation 
59.10 	policies and priorities, and availability of federal and other financial assistance;
59.11 	(3) based upon the statewide transportation plan, develop statewide transportation 
59.12 	priorities and schedule authorized public capital improvements and other authorized 
59.13 	public transportation expenditures pursuant to the priorities. As permitted by the federal 
59.14 	surface transportation program and subject to available funding, the commissioner shall 
59.15 	give serious consideration to prioritizing for funding those trunk highway projects in 
59.16 	the metropolitan area, as defined in section 473.121, subdivision 2, that are consistent 
59.17 	with policies included in the Metropolitan Council's metropolitan development guide, 
59.18 	transportation policy plan, and regional development framework, and that have been 
59.19 	awarded funding through the federal surface transportation program. In responding to an 
59.20 	unforeseen, catastrophic event affecting the state transportation system, the commissioner 
59.21 	may, upon written notification to the chairs of the senate and house of representatives 
59.22 	committees with jurisdiction over transportation policy and finance, prioritize projects 
59.23 	without regard to availability of federal funding; and
59.24 	(4) complete the plan and priorities required by this subdivision no later than July 
59.25 	1, 1978. Upon completion of the plan and priorities, the commissioner shall prepare 
59.26 	and periodically revise, as necessary, the schedule of authorized public transportation 
59.27 	expenditures. The plan, priorities, and schedule are exempt from the provisions of the 
59.28 	Administrative Procedure Act.

59.29 	EFFECTIVE DATE. This section is effective January 1, 2009.

59.30 	Sec. 89. Minnesota Statutes 2006, section 174.24, is amended by adding a subdivision 
59.31 	to read:
59.32 		Subd. 1a.Transit service needs implementation plan. The commissioner shall 
59.33 	develop a transit service needs implementation plan that contains a goal of meeting at 
59.34 	least 80 percent of unmet transit service needs in greater Minnesota by July 1, 2015, 
59.35 	and meeting at least 90 percent of unmet transit service needs in greater Minnesota by 
60.1 	July 1, 2025. The plan must include, but is not limited to, the following: an analysis of 
60.2 	ridership and transit service needs throughout greater Minnesota; a calculation of unmet 
60.3 	needs; an assessment of the level and type of service required to meet unmet needs; an 
60.4 	analysis of costs and revenue options; and, a plan to reduce unmet transit service needs as 
60.5 	specified in this subdivision. The plan must specifically address special transportation 
60.6 	service ridership and needs. The commissioner may amend the plan as necessary, and 
60.7 	may use all or part of the 2001 greater Minnesota public transportation plan created by the 
60.8 	Minnesota Department of Transportation.

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

60.10 	Sec. 90. [174.247] ANNUAL TRANSIT REPORT.
60.11 	(a) By February 15 annually, the commissioner shall submit a report to the legislature 
60.12 	on transit services outside the metropolitan area. The Metropolitan Council and any 
60.13 	public transit system receiving assistance under section 174.24 shall provide assistance 
60.14 	in creating the report, as requested by the commissioner.
60.15 	(b) The report must include, at a minimum, the following:
60.16 	(1) a descriptive overview of public transit in Minnesota;
60.17 	(2) a descriptive summary of funding sources and assistance programs;
60.18 	(3) a summary of each public transit system receiving assistance under section 
60.19 	174.24;
60.20 	(4) data that identifies use of volunteers in providing transit service;
60.21 	(5) financial data that identifies operating and capital costs, and funding sources, 
60.22 	for each public transit system and for each transit system classification under section 
60.23 	174.24, subdivision 3b;
60.24 	(6) a summary of progress with the transit service needs implementation plan under 
60.25 	section 174.24, subdivision 1a, including identification of any adjustments made to the 
60.26 	plan; and
60.27 	(7) a calculation of the amounts of surplus or insufficient funds available for (i) 
60.28 	paying the state share of transit operating costs under section 174.24, subdivision 3b, and 
60.29 	(ii) following the transit service needs implementation plan.

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

60.31 	Sec. 91. [174.37] ADVISORY COMMITTEE ON NONMOTORIZED 
60.32 	TRANSPORTATION.
61.1 		Subdivision 1.Purpose. (a) The commissioner of transportation shall establish 
61.2 	an advisory committee on nonmotorized transportation. The committee shall make 
61.3 	recommendations to the commissioner on items related to nonmotorized transportation, 
61.4 	including safety, education, and development programs. The committee shall review and 
61.5 	analyze issues and needs relating to operating nonmotorized transportation on public 
61.6 	rights-of-way, and identify solutions and goals for addressing identified issues and needs. 
61.7 	(b) For purposes of this section, "nonmotorized transportation" includes bicycling, 
61.8 	pedestrian activities, and other forms of nonmotorized transportation.
61.9 		Subd. 2.Members. The advisory committee must consist of the following members:
61.10 	(a) The commissioner of transportation shall appoint up to 18 public members, as 
61.11 	follows: one member from each of the department's seven greater Minnesota districts; 
61.12 	four members from the department's metropolitan district; and no more than seven 
61.13 	members at large. Each of the members at large must represent nonmotorized interests or 
61.14 	organizations.
61.15 	(b) The commissioners of each of the following state agencies shall appoint 
61.16 	an employee of the agency to serve as a member: administration, education, health, 
61.17 	natural resources, public safety, transportation, and pollution control. The chair of the 
61.18 	Metropolitan Council shall appoint an employee of the council to serve as a member. The 
61.19 	director of Explore Minnesota Tourism shall appoint an employee of the agency to serve 
61.20 	as a member. The division administrator of the Federal Highway Administration may 
61.21 	appoint an employee of the agency to serve as a member.
61.22 	(c) Members of the committee shall serve four-year terms.
61.23 		Subd. 3.Meetings. The commissioner of transportation's designee shall convene the 
61.24 	first meeting by January 15, 2009. The committee shall elect a chair from its membership, 
61.25 	and shall establish a meeting schedule and meet at least annually.
61.26 		Subd. 4.Reports. The committee shall issue an annual report to the commissioner 
61.27 	of transportation.
61.28 		Subd. 5.Expenses. Members of the advisory committee serve without 
61.29 	compensation, but members who are not employees of government agencies must 
61.30 	be reimbursed for expenses in the same manner and amount as authorized by the 
61.31 	commissioner's plan adopted under section 43A.18, subdivision 2. The commissioner of 
61.32 	transportation shall provide department staff support to the committee.
61.33 		Subd. 6.Expiration. Notwithstanding section 15.059, subdivision 5, the committee 
61.34 	expires June 30, 2014.

62.1 	Sec. 92. Minnesota Statutes 2006, section 221.011, is amended by adding a subdivision 
62.2 	to read:
62.3 		Subd. 50.Out-of-service order. "Out-of-service order" has the meaning given it in 
62.4 	Code of Federal Regulations, title 49, section 383.5.

62.5 	Sec. 93. Minnesota Statutes 2006, section 221.031, subdivision 1, is amended to read:
62.6 		Subdivision 1.Powers, duties, reports, limitations. (a) This subdivision applies to 
62.7 	motor carriers engaged in intrastate commerce.
62.8 	(b) The commissioner shall prescribe rules for the operation of motor carriers, 
62.9 	including their facilities; accounts; leasing of vehicles and drivers; service; safe operation 
62.10 	of vehicles; equipment, parts, and accessories; hours of service of drivers; driver 
62.11 	qualifications; accident reporting; identification of vehicles; installation of safety devices; 
62.12 	inspection, repair, and maintenance; and proper automatic speed regulators if, in the 
62.13 	opinion of the commissioner, there is a need for the rules.
62.14 	(c) The commissioner shall direct the repair and reconstruction or replacement of 
62.15 	an inadequate or unsafe motor carrier vehicle or facility. The commissioner may require 
62.16 	the construction and maintenance or furnishing of suitable and proper freight terminals, 
62.17 	passenger depots, waiting rooms, and accommodations or shelters in a city in this state or 
62.18 	at a point on the highway traversed which the commissioner, after investigation by the 
62.19 	department, may deem just and proper for the protection of passengers or property.
62.20 	(d) The commissioner shall require holders of household goods mover permits to file 
62.21 	annual and other reports including annual accounts of motor carriers, schedules of rates 
62.22 	and charges, or other data by motor carriers, regulate motor carriers in matters affecting 
62.23 	the relationship between them and the traveling and shipping public, and prescribe other 
62.24 	rules as may be necessary to carry out the provisions of this chapter.
62.25 	(e) A motor carrier subject to paragraph (d) but having gross revenues from for-hire 
62.26 	transportation in a calendar year of less than $200,000 may, at the discretion of the 
62.27 	commissioner, be exempted from the filing of an annual report, if instead the motor carrier 
62.28 	files an abbreviated annual report, in a form as may be prescribed by the commissioner, 
62.29 	attesting that the motor carrier's gross revenues did not exceed $200,000 in the previous 
62.30 	calendar year. Motor carrier gross revenues from for-hire transportation, for the purposes 
62.31 	of this subdivision only, do not include gross revenues received from the operation of 
62.32 	school buses as defined in section 169.01, subdivision 6.
62.33 	(f) The commissioner shall enforce sections 169.781 to 169.783.

62.34 	Sec. 94. Minnesota Statutes 2006, section 221.036, subdivision 1, is amended to read:
63.1 		Subdivision 1.Order. The commissioner may issue an order requiring violations 
63.2 	to be corrected and administratively assessing monetary penalties for a violation of 
63.3 	(1) section 221.021; (2) section 221.033, subdivision 2b; (3) section 221.151; (4) 
63.4 	section 221.171; (5) section 221.141; (6) a federal, state, or local law, regulation, rule, 
63.5 	or ordinance pertaining to railroad-highway grade crossings; or (6) (7) rules of the 
63.6 	commissioner relating to the transportation of hazardous waste, motor carrier operations, 
63.7 	insurance, or tariffs and accounting. An order must be issued as provided in this section. 

63.8 	Sec. 95. Minnesota Statutes 2006, section 221.036, subdivision 3, is amended to read:
63.9 		Subd. 3.Amount of penalty; considerations. (a) The commissioner may issue an 
63.10 	order assessing a penalty of up to $5,000 for all violations of section 221.021; 221.141; 
63.11 	221.151; or 221.171, or rules of the commissioner relating to motor carrier operations, 
63.12 	insurance, or tariffs and accounting, identified during a single inspection, audit, or 
63.13 	investigation. 
63.14 	(b) The commissioner may issue an order assessing a penalty up to a maximum of 
63.15 	$10,000 for all violations of section 221.033, subdivision 2b, identified during a single 
63.16 	inspection or audit. 
63.17 	(c) In determining the amount of a penalty, the commissioner shall consider:
63.18 	(1) the willfulness of the violation;
63.19 	(2) the gravity of the violation, including damage to humans, animals, air, water, 
63.20 	land, or other natural resources of the state;
63.21 	(3) the history of past violations, including the similarity of the most recent violation 
63.22 	and the violation to be penalized, the time elapsed since the last violation, the number of 
63.23 	previous violations, and the response of the person to the most recent violation identified;
63.24 	(4) the economic benefit gained by the person by allowing or committing the 
63.25 	violation; and
63.26 	(5) other factors as justice may require, if the commissioner specifically identifies 
63.27 	the additional factors in the commissioner's order.
63.28 	(d) The commissioner shall assess a penalty of not less than $1,000 against a driver 
63.29 	who is convicted of a violation of an out-of-service order. The commissioner shall assess 
63.30 	a penalty of not more than $10,000 against an employer who knowingly allows or requires 
63.31 	an employee to operate a commercial motor vehicle in violation of an out-of-service order.
63.32 	in accordance with Code of Federal Regulations, title 49, section 383.53 against:
63.33 	(1) a driver who is convicted of a violation of an out-of-service order; 
63.34 	(2) an employer who knowingly allows or requires an employee to operate a 
63.35 	commercial motor vehicle in violation of an out-of-service order; or
64.1 	(3) an employer who knowingly allows or requires an employee to operate a 
64.2 	commercial motor vehicle in violation of a federal, state, or local law or regulation 
64.3 	pertaining to railroad-highway grade crossings.

64.4 	Sec. 96. Minnesota Statutes 2006, section 221.121, subdivision 1, is amended to read:
64.5 		Subdivision 1.Petition; notice and hearing; scope. (a) A person desiring to operate 
64.6 	as a permit carrier, except as provided in subdivision 5 or section 221.296, shall file a 
64.7 	petition with the commissioner specifying the kind of permit desired, the name and address 
64.8 	of the petitioner and the names and addresses of the officers, if a corporation, and other 
64.9 	information as the commissioner may require. Letters of shipper support must be filed with 
64.10 	the petition. No person shall knowingly make a false or misleading statement in a petition. 
64.11 	(b) The commissioner, after notice to interested parties and a hearing, shall issue the 
64.12 	permit upon compliance with the laws and rules relating to it, if it finds that petitioner is 
64.13 	fit and able to conduct the proposed operations, that petitioner's vehicles meet the safety 
64.14 	standards established by the department, that the area to be served has a need for the 
64.15 	transportation services requested in the petition, and that existing permit and certificated 
64.16 	carriers in the area to be served have failed to demonstrate that they offer sufficient 
64.17 	transportation services to meet fully and adequately those needs, provided that no person 
64.18 	who holds a permit at the time sections 221.011 to 221.291 take effect may be denied 
64.19 	a renewal of the permit upon compliance with other provisions of sections 221.011 to 
64.20 	221.291. 
64.21 	(c) A permit once granted continues in full force and effect until abandoned or unless 
64.22 	suspended or revoked, subject to compliance by the permit holder with the applicable 
64.23 	provisions of law and the rules of the commissioner governing permit carriers.
64.24 	(d) No permit may be issued to a common carrier by rail permitting the common 
64.25 	carrier to operate trucks for hire within this state, nor may a common carrier by rail be 
64.26 	permitted to own, lease, operate, control, or have an interest in a permit carrier by truck, 
64.27 	either by stock ownership or otherwise, directly, indirectly, through a holding company, 
64.28 	or by stockholders or directors in common, or in any other manner. Nothing in sections 
64.29 	221.011 to 221.291 prevents the commissioner from issuing a permit to a common carrier 
64.30 	by rail authorizing the carrier to operate trucks wholly within the limits of a municipality or 
64.31 	within adjacent or contiguous municipalities or a common rate point served by the railroad 
64.32 	and only as a service supplementary to the rail service now established by the carriers. 

64.33 	Sec. 97. Minnesota Statutes 2006, section 221.121, subdivision 6a, is amended to read:
65.1 		Subd. 6a.Household goods carrier. A person who desires to hold out or to operate 
65.2 	as a carrier of household goods shall follow the procedure established in subdivision 1, 
65.3 	and shall specifically request a household goods mover permit. The permit granted by 
65.4 	the commissioner to a person who meets the criteria established in this subdivision and 
65.5 	subdivision 1 shall authorize the person to hold out and to operate as a household goods 
65.6 	mover. A person who provides or offers to provide household goods packing services 
65.7 	and who makes any arrangement directly or indirectly by lease, rental, referral, or by 
65.8 	other means to provide or to obtain drivers, vehicles, or transportation service for moving 
65.9 	household goods, must have a household goods mover permit file an application with 
65.10 	the commissioner on a form the commissioner prescribes. Notwithstanding this or any 
65.11 	other section or rule to the contrary, the commissioner must not provide public notice 
65.12 	or hearing when reviewing the application or before granting the requested operating 
65.13 	authority. All permits granted to household goods carriers must allow statewide operation. 
65.14 	Notwithstanding any geographical restrictions imposed upon a permit at the time it was 
65.15 	granted or any section or rule to the contrary, the holder of a household goods permit may 
65.16 	operate statewide.

65.17 	Sec. 98. Minnesota Statutes 2006, section 221.151, subdivision 1, is amended to read:
65.18 		Subdivision 1.Petition. (a) Permits, except livestock permits, issued under section 
65.19 	221.121 may be assigned or transferred but only upon the order of the commissioner 
65.20 	approving the transfer or assignment after notice and hearing. 
65.21 	(b) The proposed seller and buyer or lessor and lessee of a permit, except for 
65.22 	livestock carrier permits, shall file a joint notarized petition with the commissioner setting 
65.23 	forth the name and address of the parties, the identifying number of the permit, and the 
65.24 	description of the authority which the parties seek to sell or lease, a short statement of 
65.25 	the reasons for the proposed sale or lease, a statement of outstanding claims of creditors 
65.26 	which are directly attributable to the operation to be conducted under the permit, a copy of 
65.27 	the contract of sale or lease, and a financial statement with a balance sheet and an income 
65.28 	statement, if existent, of the buyer or lessee. If it appears to the commissioner, after notice 
65.29 	to interested parties and a hearing, from the contents of the petition, from the evidence 
65.30 	produced at the hearing, and from the department's records, files, and investigation that 
65.31 	the approval of the sale or lease of the permit will not adversely affect the rights of the 
65.32 	users of the service and will not have an adverse effect upon other competing carriers, 
65.33 	the commissioner may make an order granting the sale or lease. Provided, however, that 
65.34 	the commissioner shall make no order granting the sale or lease of a permit to a person 
66.1 	or corporation or association which holds a certificate or permit other than local cartage 
66.2 	carrier permit from the commissioner under this chapter or to a common carrier by rail.
66.3 	Provided further that the commissioner shall make no order approving the sale or 
66.4 	lease of a permit if the commissioner finds that the price paid for the sale or lease of a 
66.5 	permit is disproportionate to the reasonable value of the permit considering the assets and 
66.6 	goodwill involved. The commissioner shall approve the sale or lease of a permit only after 
66.7 	a finding that the transferee is fit and able to conduct the operations authorized under the 
66.8 	permit and that the vehicles the transferee proposes to use in conducting the operations 
66.9 	meet the safety standards of the commissioner. In determining the extent of the operating 
66.10 	authority to be conducted by the transferee under the sale or lease of the permit, the past 
66.11 	operations of the transferor within the two-year period immediately preceding the transfer 
66.12 	must be considered. Only such operating authority may be granted to the transferee as was 
66.13 	actually exercised by the transferor under the transferor's authority within the two-year 
66.14 	period immediately preceding the transfer as evidenced by bills of lading, company 
66.15 	records, operation records, or other relevant evidence. For purposes of determining the 
66.16 	two-year period, the date of divesting of interest or control is the date of the sale.
66.17 	(c) The commissioner shall look to the substance of the transaction rather than the 
66.18 	form. An agreement for the transfer or sale of a permit must be reported and filed with the 
66.19 	commissioner within 30 days of the agreement.
66.20 	(d) If an authority to operate as a permit carrier is held by a corporation, a sale, 
66.21 	assignment, pledge, or other transfer of the stock interest in the corporation which will 
66.22 	accomplish a substantial or material change or transfer of the majority ownership of 
66.23 	the corporation, as exercised through its stockholders, must be reported in the manner 
66.24 	prescribed in the rules of the commissioner within 30 days after the sale, assignment, 
66.25 	pledge, or other transfer of stock. The commissioner shall then make a finding whether or 
66.26 	not the stock transfer does, in fact, constitute a sale, lease, or other transfer of the permit of 
66.27 	the corporation to a new party or parties and, if they so find, then the continuance of the 
66.28 	permit issued to the corporation may only be upon the corporation's complying with the 
66.29 	standards and procedures otherwise imposed by this section.

66.30 	Sec. 99. Minnesota Statutes 2006, section 221.221, subdivision 2, is amended to read:
66.31 		Subd. 2.Enforcement powers. Transportation program specialists and hazardous 
66.32 	material program specialists of the department have the powers conferred by law upon 
66.33 	police officers, only for the purpose purposes of enforcing:
67.1 	(1) enforcing this chapter, sections 169.781 to 169.783 relating to commercial 
67.2 	vehicle inspections, and sections 168D.05 and 168D.12 relating to motor carrier licenses 
67.3 	and trip permits,;
67.4 	(2) enforcing Code of Federal Regulations, title 49, parts 40 and 382, and; 
67.5 	(3) enforcing the applicable rules, orders, or directives of the commissioner of 
67.6 	transportation and the commissioner of revenue, issued under this chapter and chapter 
67.7 	168D or 296A, but for no other purpose, have the powers conferred by law upon police 
67.8 	officers. The powers include the authority to conduct;
67.9 	(4) enforcing the North American uniform out-of-service criteria and issuing 
67.10 	out-of-service orders, as defined in Code of Federal Regulations, title 49, section 383.5; 
67.11 	and
67.12 	(5) conducting  inspections at designated highway weigh stations or under other 
67.13 	appropriate circumstances. 

67.14 	Sec. 100. Minnesota Statutes 2006, section 239.791, subdivision 10, is amended to 
67.15 	read:
67.16 		Subd. 10.Exemption for airport, marina, mooring facility, and resort. A person 
67.17 	responsible for the product may offer for sale, sell, or dispense at an airport, marina, 
67.18 	mooring facility, or resort, for use in airplanes or for purposes listed under subdivision 
67.19 	12, paragraph (a), gasoline that is not oxygenated in accordance with subdivision 1 if the 
67.20 	gasoline is unleaded premium grade as defined in section 239.751, subdivision 4. 

67.21 	Sec. 101. Minnesota Statutes 2006, section 239.791, is amended by adding a 
67.22 	subdivision to read:
67.23 		Subd. 10a.Exemption for resorts, marinas, and houseboat rental companies.
 67.24 	A person responsible for the product may offer for sale, sell, or dispense at a resort, 
67.25 	marina, or houseboat rental company gasoline that is not oxygenated in accordance 
67.26 	with subdivision 1 if the gasoline has an octane rating of 87 or higher and is delivered 
67.27 	into onsite bulk storage.

67.28 	Sec. 102. Minnesota Statutes 2006, section 299A.705, subdivision 1, is amended to 
67.29 	read:
67.30 		Subdivision 1.Vehicle services operating account. (a) The vehicle services 
67.31 	operating account is created in the special revenue fund, consisting of all money from the 
67.32 	vehicle services fees specified in chapters 168 and, 168A, and 168D, and any other money 
67.33 	otherwise donated, allotted, appropriated, or legislated to this account.
68.1 	(b) Funds appropriated are available to administer vehicle services as specified in 
68.2 	chapters 168 and, 168A, and 168D, and section 169.345, including:
68.3 	(1) designing, producing, issuing, and mailing vehicle registrations, plates, emblems, 
68.4 	and titles;
68.5 	(2) collecting title and registration taxes and fees;
68.6 	(3) transferring vehicle registration plates and titles;
68.7 	(4) maintaining vehicle records;
68.8 	(5) issuing disability certificates and plates;
68.9 	(6) licensing vehicle dealers;
68.10 	(7) appointing, monitoring, and auditing deputy registrars; and
68.11 	(8) inspecting vehicles when required by law.

68.12 	EFFECTIVE DATE. This section is effective retroactively from August 1, 2005, 
68.13 	for fees collected on or after that date.

68.14 	Sec. 103. Minnesota Statutes 2006, section 299D.03, subdivision 1, is amended to read:
68.15 		Subdivision 1.Members, powers, and duties. (a) The commissioner is hereby 
68.16 	authorized to employ and designate a chief supervisor, a chief assistant supervisor, and 
68.17 	such assistant supervisors, sergeants and officers as are provided by law, who shall 
68.18 	comprise the Minnesota State Patrol.
68.19 	(b) The members of the Minnesota State Patrol shall have the power and authority:
68.20 	(1) as peace officers to enforce the provisions of the law relating to the protection of 
68.21 	and use of trunk highways;
68.22 	(2) at all times to direct all traffic on trunk highways in conformance with law, and in 
68.23 	the event of a fire or other emergency, or to expedite traffic or to insure safety, to direct 
68.24 	traffic on other roads as conditions may require notwithstanding the provisions of law;
68.25 	(3) to serve search warrants related to criminal motor vehicle and traffic violations 
68.26 	and arrest warrants, and legal documents anywhere in the state;
68.27 	(4) to serve orders of the commissioner of public safety or the commissioner's duly 
68.28 	authorized agents issued under the provisions of the Driver's License Law, the Safety 
68.29 	Responsibility Act, or relating to authorized brake- and light-testing stations, anywhere 
68.30 	in the state and to take possession of any license, permit, or certificate ordered to be 
68.31 	surrendered;
68.32 	(5) to inspect official brake and light adjusting stations;
68.33 	(6) to make appearances anywhere within the state for the purpose of conducting 
68.34 	traffic safety educational programs and school bus clinics;
69.1 	(7) to exercise upon all trunk highways the same powers with respect to the 
69.2 	enforcement of laws relating to crimes, as sheriffs and police officers;
69.3 	(8) to cooperate, under instructions and rules of the commissioner of public 
69.4 	safety, with all sheriffs and other police officers anywhere in the state, provided that 
69.5 	said employees shall have no power or authority in connection with strikes or industrial 
69.6 	disputes;
69.7 	(9) to assist and aid any peace officer whose life or safety is in jeopardy;
69.8 	(10) as peace officers to provide security and protection to the governor, governor 
69.9 	elect, either or both houses of the legislature, and state buildings or property in the manner 
69.10 	and to the extent determined to be necessary after consultation with the governor, or a 
69.11 	designee. Pursuant to this clause, members of the State Patrol, acting as peace officers 
69.12 	have the same powers with respect to the enforcement of laws relating to crimes, as 
69.13 	sheriffs and police officers have within their respective jurisdictions;
69.14 	(11) to inspect school buses anywhere in the state for the purposes of determining 
69.15 	compliance with vehicle equipment, pollution control, and registration requirements;
69.16 	(12) as peace officers to make arrests for public offenses committed in their presence 
69.17 	anywhere within the state. Persons arrested for violations other than traffic violations 
69.18 	shall be referred forthwith to the appropriate local law enforcement agency for further 
69.19 	investigation or disposition.; and
69.20 	(13) to enforce the North American uniform out-of-service criteria and issue 
69.21 	out-of-service orders, as defined in Code of Federal Regulations, title 49, section 383.5.
69.22 	(c) The state may contract for State Patrol members to render the services described 
69.23 	in this section in excess of their regularly scheduled duty hours and patrol members 
69.24 	rendering such services shall be compensated in such amounts, manner and under such 
69.25 	conditions as the agreement provides.
69.26 	(d) Employees thus employed and designated shall subscribe an oath.

69.27 	Sec. 104. Minnesota Statutes 2006, section 299D.06, is amended to read:
69.28 	299D.06 PATROL EMPLOYEES WHO ARE NOT TROOPERS.
69.29 	(a) Department personnel must be classified employees assigned to the Division of 
69.30 	State Patrol if they are employed to enforce:
69.31 	(1) laws relating to motor vehicle equipment; school bus equipment; drivers' 
69.32 	licenses; motor vehicle registration; motor vehicle size and weight; motor carrier 
69.33 	insurance, registration, and safety; and motor vehicle petroleum taxes;
69.34 	(2) Pollution Control Agency rules relating to motor vehicle noise abatement; and
69.35 	(3) laws relating to directing the movement of vehicles; and
70.1 	(4) the North American uniform out-of-service criteria and issue out-of-service 
70.2 	orders, as defined in Code of Federal Regulations, title 49, section 383.5.
70.3 	(b) Employees engaged in these duties, while actually on the job during their 
70.4 	working hours only, shall have power to:
70.5 	(1) issue citations in lieu of arrest and continued detention; and
70.6 	(2) prepare notices to appear in court for violation of these laws and rules, in the 
70.7 	manner provided in section 169.91, subdivision 3. 
70.8 	(c) They shall not be armed and, except as provided in this section, shall have none 
70.9 	of the other powers and privileges reserved to peace officers including the power to 
70.10 	enforce traffic laws and regulations.

70.11 	Sec. 105. Minnesota Statutes 2006, section 325F.6641, subdivision 1, is amended to 
70.12 	read:
70.13 		Subdivision 1.Damage. (a) If a motor vehicle has sustained damage by collision 
70.14 	or other occurrence which exceeds 7060 percent of its actual cash value immediately 
70.15 	prior to sustaining damage, the seller must disclose that fact to the buyer, if the seller has 
70.16 	actual knowledge of the damage. The amount of damage is determined by the retail cost 
70.17 	of repairing the vehicle based on a complete written retail repair estimate or invoice, 
70.18 	exclusive of the actual cost incurred to repair, replace, or reinstall inflatable safety 
70.19 	restraints and other vehicle components that must be replaced due to the deployment 
70.20 	of the inflatable safety restraints.
70.21 	(b) The disclosure required under this subdivision must be made in writing on the 
70.22 	application for title and registration or other transfer document, in a manner prescribed 
70.23 	by the registrar of motor vehicles. The registrar shall revise the certificate of title form, 
70.24 	including the assignment by seller (transferor) and reassignment by licensed dealer 
70.25 	sections of the form, the separate application for title forms, and other transfer documents 
70.26 	to accommodate this disclosure. If the seller is a motor vehicle dealer licensed pursuant to 
70.27 	section 168.27, the disclosure required by this section must be made orally by the dealer to 
70.28 	the prospective buyer in the course of the sales presentation.
70.29 	(c) Upon transfer and application for title to a vehicle covered by this subdivision, 
70.30 	the registrar shall record the term "rebuilt" on the first Minnesota certificate of title and all 
70.31 	subsequent Minnesota certificates of title used for that vehicle.

70.32 	Sec. 106. Minnesota Statutes 2006, section 325F.6641, subdivision 2, is amended to 
70.33 	read:
71.1 		Subd. 2.Form of disclosure. The disclosure required in this section must be made 
71.2 	in substantially the following form: "To the best of my knowledge, this vehicle has ..... 
71.3 	has not ..... sustained damage, exclusive of any costs to repair, replace, or reinstall air bags 
71.4 	and other components that were replaced due to deployment of air bags, in excess of 
71.5 	70 60 percent actual cash value."

71.6 	Sec. 107. Minnesota Statutes 2006, section 357.021, subdivision 6, is amended to read:
71.7 		Subd. 6.Surcharges on criminal and traffic offenders. (a) Except as provided 
71.8 	in this paragraph, the court shall impose and the court administrator shall collect a $72 
71.9 	surcharge on every person convicted of any felony, gross misdemeanor, misdemeanor, or 
71.10 	petty misdemeanor offense, other than a violation of a law or ordinance relating to vehicle 
71.11 	parking, for which there shall be a $4 surcharge, and other than a violation of section 
71.12 	169.686, for which there shall be a $25 surcharge. In the Second Judicial District, the 
71.13 	court shall impose, and the court administrator shall collect, an additional $1 surcharge 
71.14 	on every person convicted of any felony, gross misdemeanor, misdemeanor, or petty 
71.15 	misdemeanor offense, including a violation of a law or ordinance relating to vehicle 
71.16 	parking, if the Ramsey County Board of Commissioners authorizes the $1 surcharge. The 
71.17 	surcharge shall be imposed whether or not the person is sentenced to imprisonment or the 
71.18 	sentence is stayed. The surcharge shall not be imposed when a person is convicted of a 
71.19 	petty misdemeanor for which no fine is imposed.
71.20 	(b) If the court fails to impose a surcharge as required by this subdivision, the court 
71.21 	administrator shall show the imposition of the surcharge, collect the surcharge, and 
71.22 	correct the record.
71.23 	(c) The court may not waive payment of the surcharge required under this 
71.24 	subdivision. Upon a showing of indigency or undue hardship upon the convicted person 
71.25 	or the convicted person's immediate family, the sentencing court may authorize payment 
71.26 	of the surcharge in installments.
71.27 	(d) The court administrator or other entity collecting a surcharge shall forward it 
71.28 	to the commissioner of finance.
71.29 	(e) If the convicted person is sentenced to imprisonment and has not paid the 
71.30 	surcharge before the term of imprisonment begins, the chief executive officer of the 
71.31 	correctional facility in which the convicted person is incarcerated shall collect the 
71.32 	surcharge from any earnings the inmate accrues from work performed in the facility 
71.33 	or while on conditional release. The chief executive officer shall forward the amount 
71.34 	collected to the commissioner of finance.

72.1 	EFFECTIVE DATE. This section is effective June 9, 2008, and applies to acts 
72.2 	committed on or after that date.

72.3 	Sec. 108. Minnesota Statutes 2006, section 357.021, subdivision 7, is amended to read:
72.4 		Subd. 7.Disbursement of surcharges by commissioner of finance. (a) Except 
72.5 	as provided in paragraphs (b), (c), and (d), the commissioner of finance shall disburse 
72.6 	surcharges received under subdivision 6 and section 97A.065, subdivision 2, as follows:
72.7 	(1) one percent shall be credited to the game and fish fund to provide peace officer 
72.8 	training for employees of the Department of Natural Resources who are licensed under 
72.9 	sections 626.84 to 626.863, and who possess peace officer authority for the purpose of 
72.10 	enforcing game and fish laws;
72.11 	(2) 39 percent shall be credited to the peace officers training account in the special 
72.12 	revenue fund; and
72.13 	(3) 60 percent shall be credited to the general fund.
72.14 	(b) The commissioner of finance shall credit $3 of each surcharge received under 
72.15 	subdivision 6 and section 97A.065, subdivision 2, to the general fund.
72.16 	(c) In addition to any amounts credited under paragraph (a), the commissioner 
72.17 	of finance shall credit $44 of each surcharge received under subdivision 6 and section 
72.18 	97A.065, subdivision 2, and the $4 parking surcharge, to the general fund.
72.19 	(d) If the Ramsey County Board of Commissioners authorizes imposition of 
72.20 	the additional $1 surcharge provided for in subdivision 6, paragraph (a), the court 
72.21 	administrator in the Second Judicial District shall transmit the surcharge to the 
72.22 	commissioner of finance. The $1 special surcharge is deposited in a Ramsey County 
72.23 	surcharge account in the special revenue fund and amounts in the account are appropriated 
72.24 	to the trial courts for the administration of the petty misdemeanor diversion program 
72.25 	operated by the Second Judicial District Ramsey County Violations Bureau.
72.26 	(e) Notwithstanding paragraphs (b) and (c), the commissioner of finance shall 
72.27 	disburse the entire surcharge received under subdivision 6 for violations of section 
72.28 	169.686 as provided in paragraph (a).

72.29 	EFFECTIVE DATE. This section is effective June 9, 2008, and applies to acts 
72.30 	committed on or after that date.

72.31 	Sec. 109. Minnesota Statutes 2006, section 465.74, is amended by adding a subdivision 
72.32 	to read:
72.33 		Subd. 10.Facility relocation costs. Notwithstanding any contrary provisions in 
72.34 	section 237.163, and rules adopted under that section, district heating and district cooling 
73.1 	nonprofit corporations organized under chapter 317A that are exempt organizations 
73.2 	under section 501(c)(3) of the United States Internal Revenue Code and that are public 
73.3 	right-of-way users under Minnesota Rules, chapter 7819, are eligible to receive grants 
73.4 	and federal money for costs of relocating facilities from public rights-of-way to prevent 
73.5 	interference with public light rail projects, unless eligibility would impact the project's 
73.6 	Federal Transit Authority required cost effectiveness index.

73.7 	Sec. 110. Minnesota Statutes 2006, section 473.13, subdivision 1a, is amended to read:
73.8 		Subd. 1a.Program evaluation. The budget procedure of the council must include a 
73.9 	substantive assessment and evaluation of the effectiveness of each significant program of 
73.10 	the council, with, to the extent possible, quantitative information on the status, progress, 
73.11 	costs, benefits, and effects of each program.  An assessment of progress towards meeting 
73.12 	transit goals for people with disabilities must be included, with required elements 
73.13 	including, but not limited to:
73.14 	(1) a description of proposed program enhancements;
73.15 	(2) an assessment of progress;
73.16 	(3) identification of the estimated total number of potential and actual riders who are 
73.17 	disabled;
73.18 	(4) an assessment of the level and type of service required to meet unmet ridership 
73.19 	needs; and
73.20 	(5) an analysis of costs and revenue options, including a calculation of the amounts 
73.21 	of surplus or insufficient funds available for achieving paratransit needs.
73.22 	The council shall transmit the evaluation to the legislature annually.

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

73.24 	Sec. 111. Minnesota Statutes 2006, section 473.388, subdivision 2, is amended to read:
73.25 		Subd. 2.Replacement service; eligibility.  (a) The council may provide assistance 
73.26 	under the program to a statutory or home rule charter city or town or combination thereof, 
73.27 	that:
73.28 	(a) (1) is located in the metropolitan transit taxing district;
73.29 	(b) (2) is not served by the council bus service or is served only with council bus 
73.30 	routes which begin or end within the applying city or town or combination thereof; and
73.31 	(c) (3) has fewer than four scheduled runs of council bus service during off-peak 
73.32 	hours defined in section 473.408, subdivision 1. 
74.1 	(b) Eligible cities or towns or combinations thereof may apply on behalf of a transit 
74.2 	operator with whom they propose to contract for service.
74.3 	(c) The council may not provide assistance under this section to a statutory or home 
74.4 	rule charter city or town unless the city or town,:
74.5 	(i)(1) was receiving assistance under Minnesota Statutes 1982, section 174.265 by 
74.6 	July 1, 1984,;
74.7 	(ii)(2) had submitted an application for assistance under that section by July 1, 
74.8 	1984,; or
74.9 	(iii)(3) had submitted a letter of intent to apply for assistance under that section by 
74.10 	July 1, 1984, and submits submitted an application for assistance under this section by 
74.11 	July 1, 1988. A statutory or home rule charter city or town has an additional 12-month 
74.12 	extension if it notified the former regional transit board before July 1, 1988, that the city or 
74.13 	town is in the process of completing a transportation evaluation study that includes an 
74.14 	assessment of the local transit needs of the city or town.
74.15 	(d) Nothing in this section prevents a local governmental unit from providing public 
74.16 	transit service that extends outside of the metropolitan transit taxing district.
74.17 	(e) For purposes of this subdivision, "off-peak hours" means the time from 9:00 a.m. 
74.18 	to 3:30 p.m. and 6:30 p.m. until the last bus on Monday through Friday of each week, and 
74.19 	all day Saturday, Sunday, and holidays designated by the council.

74.20 	Sec. 112. Minnesota Statutes 2006, section 473.446, subdivision 2, is amended to read:
74.21 		Subd. 2.Transit taxing district. The metropolitan transit taxing district is hereby 
74.22 	designated as that portion of the metropolitan transit area lying within the following 
74.23 	named cities, towns, or unorganized territory within the counties indicated:
74.24 	(a) Anoka County. Anoka, Blaine, Centerville, Columbia Heights, Coon Rapids, 
74.25 	Fridley, Circle Pines, Hilltop, Lexington, Lino Lakes, Spring Lake Park;
74.26 	(b) Carver County. Chanhassen, the city of Chaska;
74.27 	(c) Dakota County. Apple Valley, Burnsville, Eagan, Inver Grove Heights, Lilydale, 
74.28 	Mendota, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake, West St. Paul;
74.29 	(d) Ramsey County. All of the territory within Ramsey County;
74.30 	(e) Hennepin County. Bloomington, Brooklyn Center, Brooklyn Park, Champlin, 
74.31 	Chanhassen, Crystal, Deephaven, Eden Prairie, Edina, Excelsior, Golden Valley, 
74.32 	Greenwood, Hopkins, Long Lake, Maple Grove, Medicine Lake, Minneapolis, 
74.33 	Minnetonka, Minnetonka Beach, Mound, New Hope, Orono, Osseo, Plymouth, Richfield, 
74.34 	Robbinsdale, St. Anthony, St. Louis Park, Shorewood, Spring Park, Tonka Bay, Wayzata, 
74.35 	Woodland, the unorganized territory of Hennepin County;
75.1 	(f) Scott County. Prior Lake, Savage, Shakopee;
75.2 	(g) Washington County. Baytown, the city of Stillwater, White Bear Lake, Bayport, 
75.3 	Birchwood, Cottage Grove, Dellwood, Lake Elmo, Landfall, Mahtomedi, Newport, 
75.4 	Oakdale, Oak Park Heights, Pine Springs, St. Paul Park, Willernie, Woodbury means the 
75.5 	metropolitan area.
75.6 	The Metropolitan Council in its sole discretion may provide transit service by 
75.7 	contract beyond the boundaries of the metropolitan transit taxing district or to cities and 
75.8 	towns within the taxing district which are receiving financial assistance under section 
75.9 	473.388, upon petition therefor by an interested city, township or political subdivision 
75.10 	within the metropolitan transit area. The Metropolitan Council may establish such 
75.11 	terms and conditions as it deems necessary and advisable for providing the transit 
75.12 	service, including such combination of fares and direct payments by the petitioner as 
75.13 	will compensate the council for the full capital and operating cost of the service and the 
75.14 	related administrative activities of the council. The amount of the levy made by any 
75.15 	municipality to pay for the service shall be disregarded when calculation of levies subject 
75.16 	to limitations is made, provided that cities and towns receiving financial assistance under 
75.17 	section 473.388 shall not make a special levy under this subdivision without having first 
75.18 	exhausted the available local transit funds as defined in section 473.388. The council shall 
75.19 	not be obligated to extend service beyond the boundaries of the taxing district, or to cities 
75.20 	and towns within the taxing district which are receiving financial assistance under section 
75.21 	473.388, under any law or contract unless or until payment therefor is received. 

75.22 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
75.23 	thereafter.

75.24 	Sec. 113. Minnesota Statutes 2006, section 473.446, subdivision 8, is amended to read:
75.25 		Subd. 8.State review. The commissioner of revenue shall certify the council's levy 
75.26 	limitation under this section to the council by August 1 of the levy year. The council 
75.27 	must certify its proposed property tax levy under this section to the commissioner of 
75.28 	revenue by September 1 of the levy year. The commissioner of revenue shall annually 
75.29 	determine whether the property tax for transit purposes certified by the council for levy 
75.30 	following the adoption of its proposed budget is within the levy limitation imposed by 
75.31 	subdivisionssubdivision 1 and 1b. The commissioner shall also annually determine 
75.32 	whether the transit tax imposed on all taxable property within the metropolitan transit area 
75.33 	but outside of the metropolitan transit taxing district is within the levy limitation imposed 
75.34 	by subdivision 1a. The determination must be completed prior to September 10 of each 
75.35 	year. If current information regarding market valuation in any county is not transmitted to 
76.1 	the commissioner in a timely manner, the commissioner may estimate the current market 
76.2 	valuation within that county for purposes of making the calculations.

76.3 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
76.4 	thereafter.

76.5 	Sec. 114. Laws 1976, chapter 199, section 14, subdivision 1, as amended by Laws 
76.6 	1984, chapter 572, section 3, subdivision 1, is amended to read:
76.7 		Subdivision 1. Safety regulation study. The commissioner of transportation, with 
76.8 	the cooperation of representatives of regional and local units of government and law 
76.9 	enforcement agencies, the state trail council, the Governor's trail advisory committee, the 
76.10 	commissioner of public safety, highway user groups and associations, and cycling groups 
76.11 	and associations shall review and analyze problems relating to the operation of bicycles on 
76.12 	the public roads and ways. 
76.13 	As part of this review and analysis the commissioner shall review the Minnesota 
76.14 	motor vehicle code to identify provisions which give motorists and bicyclists inadequate 
76.15 	guidelines where such traffic conflicts or which may be inconsistent or ambiguous when 
76.16 	applied to traffic situations involving special bicycle facilities within or adjacent to public 
76.17 	streets and highways. 
76.18 	No later than January 15, 1977 the commissioner shall report the results of this 
76.19 	review and analysis and recommendations for any necessary action to the legislative 
76.20 	committees having jurisdiction over the subject. 
76.21 	Following the completion of the study the advisory committee on bicycling formed 
76.22 	by the commissioner under this subdivision shall continue to function under that name in 
76.23 	an advisory capacity to make recommendations to the commissioners of transportation and 
76.24 	public safety and the legislature on bicycle safety and bicycle education and development 
76.25 	programs.

76.26 	Sec. 115. Laws 2002, chapter 393, section 85, is amended to read:
76.27 	Sec. 85. DAN PATCH COMMUTER RAIL LINE; PROHIBITIONS.
 76.28 		Subdivision 1. Definition. For purposes of this section, "Dan Patch commuter rail 
76.29 	line" means the commuter rail line between Northfield and Minneapolis identified in the 
76.30 	metropolitan council's transit 2020 master plan as the Dan Patch line. 
76.31 		Subd. 2. Metropolitan council; prohibitions. The metropolitan council must not 
76.32 	take any action or spend any money for study, planning, preliminary engineering, final 
76.33 	design, or construction for the Dan Patch commuter rail line. The council must remove 
76.34 	all references, other than references for historical purposes, to the Dan Patch commuter 
77.1 	rail line from any future revisions to the council's transportation development guide and 
77.2 	the council's regional transit master plan.
77.3 		Subd. 3. Commissioner of transportation. The commissioner of transportation 
77.4 	must not expend any money for study, planning, preliminary engineering, final design, 
77.5 	or construction for the Dan Patch commuter rail line. The commissioner must remove 
77.6 	all references, other than references for historical purposes, to the Dan Patch commuter 
77.7 	rail line from any future revisions to the state transportation plan and the commissioner's 
77.8 	commuter rail system plan.
77.9 		Subd. 4. Regional rail authorities. No regional rail authority may expend any 
77.10 	money for study, planning, preliminary engineering, final design, or construction for 
77.11 	the Dan Patch commuter rail line.

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

77.13 	Sec. 116. LAFAYETTE BRIDGE.
 77.14 	The commissioner of transportation shall ensure that design, construction, and 
77.15 	environmental documentation of the reconstruction or improvement of the Lafayette 
77.16 	Bridge segment of U.S. Highway 52 include bridge footings that will accommodate future 
77.17 	implementation of transit.

77.18 	Sec. 117. CREATION OF PLAN, REPORTS, AND ASSESSMENTS.
 77.19 	The Department of Transportation and the Metropolitan Council shall create the 
77.20 	plan, reports, and assessments required in Minnesota Statutes, sections 174.24, subdivision 
77.21 	1a; 174.247; and 473.13, subdivision 1a, within current appropriation levels.

77.22 	Sec. 118. REPORT ON URBAN PARTNERSHIP AGREEMENT.
 77.23 	By January 15, 2009, and on January 15 each year through 2014, the commissioner 
77.24 	of transportation, in conjunction with the Metropolitan Council, shall report to the chairs 
77.25 	and ranking minority members of the legislative committees with jurisdiction over 
77.26 	transportation concerning the status of the state's participation in the urban partnership 
77.27 	agreement. The report must:
77.28 	(1) present the elements of congestion reduction strategies to be implemented under 
77.29 	the urban partnership agreement;
77.30 	(2) summarize average daily traffic and congestion levels on affected roadways;
77.31 	(3) summarize transit usage in affected corridors;
77.32 	(4) identify the costs of participation and the sources of funding secured or to be 
77.33 	secured;
78.1 	(5) include information on revenues and expenditures under the urban partnership 
78.2 	agreement;
78.3 	(6) summarize any user fees collected on I-35W high-occupancy vehicle and 
78.4 	dynamic shoulder lanes; and
78.5 	(7) recommend any further legislative action necessary for the successful 
78.6 	implementation and operation of the urban partnership agreement.

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

78.8 	Sec. 119. HIGHWAY CONSTRUCTION IN ROCHESTER.
 78.9 	(a) The commissioner of transportation shall proceed without delay to issue to the 
78.10 	city of Rochester the necessary permits that allow the city to complete the construction 
78.11 	of a new interchange at marked Trunk Highway 52 and 65th Street NW in the city of 
78.12 	Rochester. The commissioner shall review the environmental documentation prepared 
78.13 	by the city in a timely manner and shall issue the necessary construction permits without 
78.14 	delay upon the issuance of a finding of no significant impact. The entire cost of the 65th 
78.15 	Street NW interchange design, right-of-way acquisition, and construction shall be the 
78.16 	responsibility of the city of Rochester.
78.17 	(b) The entire cost of the 55th Street NW interchange design, right-of-way 
78.18 	acquisition, and construction shall be the responsibility of the state.

78.19 	Sec. 120. U.S. OPEN SPECIAL TEMPORARY PERMITS.
 78.20 		Subdivision 1.Definitions. (a) "Committee" means the 2008 U.S. Women's Open 
78.21 	Committee.
78.22 	(b) "Commissioner" means the commissioner of public safety.
78.23 		Subd. 2.Issuance and design. Notwithstanding Minnesota Statutes, section 
78.24 	168.1293, upon the request of the committee, the commissioner shall issue to the 
78.25 	committee a minimum of 250 special temporary permits for use in connection with 
78.26 	the 2008 United States Golf Association Women's Open Championship. The special 
78.27 	temporary permits must be of a design approved by the commissioner after consultation 
78.28 	with the committee. The permits may be displayed only on a passenger vehicle, the use 
78.29 	of which has been donated for the open championship by the vehicle manufacturer. The 
78.30 	permits are valid from the date of issuance until July 4, 2008.
78.31 		Subd. 3.Fees. The commissioner shall collect a fee of $10 for each pair of special 
78.32 	temporary permits issued under this section. All fees received under this section must 
78.33 	be deposited in the special revenue fund and credited to the vehicle services operating 
78.34 	account.
79.1 		Subd. 4.Application. In requesting special temporary permits under this section, 
79.2 	the committee shall provide the following information to the commissioner at least 60 
79.3 	days before the start of the period for which the permits are requested:
79.4 	(1) the dates of the period for which the permits are requested;
79.5 	(2) the name, address, and telephone number of an authorized representative of 
79.6 	the committee;
79.7 	(3) the quantity of permits requested; and 
79.8 	(4) a certification that the insurance required under Minnesota Statutes, section 
79.9 	65B.49, subdivision 3, will be provided for each vehicle for which special temporary 
79.10 	permits are provided under this section.
79.11 		Subd. 5.Liability. If a parking violation citation is issued for a violation committed 
79.12 	by a driver of a vehicle displaying special temporary permits issued under this section, 
79.13 	the committee is liable for the amount of fine, penalty assessment, late payment penalty, 
79.14 	or cost of warrants issued in connection with the violation unless, within 15 days after 
79.15 	receiving knowledge of the violation, the committee provides to the issuing authority the 
79.16 	following information to the extent available: the driver's full name; home address; local 
79.17 	address, if any; license number; and employer's name and address. If the committee 
79.18 	is relieved of liability under this subdivision, the person who committed the violation 
79.19 	remains liable for the violation.

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

79.21 	Sec. 121. ENGINE BRAKES; REGULATION BY MINNEAPOLIS.
 79.22 	Notwithstanding any other law or charter provision, the governing body of the city 
79.23 	of Minneapolis may by ordinance restrict or prohibit the use of an engine brake on motor 
79.24 	vehicles along Legislative Route No. 107, also known as marked Interstate Highway 394, 
79.25 	beginning at the South Penn Avenue interchange in the city of Minneapolis and thence 
79.26 	extending easterly to the terminus of marked Interstate Highway 394. Upon notification 
79.27 	to the commissioner of transportation by the city of Minneapolis, the commissioner of 
79.28 	transportation shall erect the appropriate signs, with the cost of the signs to be paid by the 
79.29 	city. For purposes of this section, "engine brake" means any device that uses the engine 
79.30 	and transmission to impede the forward motion of the motor vehicle by compression 
79.31 	of the engine.

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

79.33 	Sec. 122. ROAD CONSTRUCTION PROJECT CONTRACT AWARD.
 80.1 		Subdivision 1.Application. This section applies only to a cooperative road 
80.2 	construction project described as state project number 6915-129, located on Trunk 
80.3 	Highway No. 53, and certain intersecting and adjoining local roads.
80.4 		Subd. 2.Federal project funding. The commissioner of transportation shall make 
80.5 	all reasonable efforts, as promptly as possible, to obtain from the Federal Highway 
80.6 	Administration a commitment to provide federal-aid highway funding for the state and 
80.7 	local units of government involved in state project number 6915-129.
80.8 		Subd. 3.Local approval. The county of St. Louis and the cities of Duluth and 
80.9 	Hermantown shall execute all necessary documents, including cooperative construction 
80.10 	agreements.
80.11 		Subd. 4.Contract award. Upon receipt of all necessary documents signifying 
80.12 	participation of affected local government units, and receipt of assurance of federal-aid 
80.13 	highway funding for the project, the commissioner of transportation shall award a contract 
80.14 	for construction of the project to the lowest bidder among the bids that were submitted for 
80.15 	the project as described in the plans, standard specifications for construction, and special 
80.16 	provisions for state project number 6915-129 as represented in the bidding documents on 
80.17 	file in the office of the commissioner of transportation for advertisement for bids on May 
80.18 	16, 2008, and reflecting revised contract time, project staging, and modifications.
80.19 		Subd. 5.Contract execution. The lowest bidder may execute the awarded contract 
80.20 	no later than ten days after the contract is awarded. If the lowest bidder does not execute 
80.21 	the contract within ten days, and waives all claims arising out of any delays connected to 
80.22 	the award of the contract and occurring before execution of the contract, the commissioner 
80.23 	may readvertise for bids and award the contract as provided in Minnesota Statutes, 
80.24 	section 161.32.
80.25 		Subd. 6.Contract terms. The commissioner may amend the contract as provided 
80.26 	in the standard specifications for construction. The contract pay items described in the 
80.27 	awarded contract for state project number 6915-129 must retain the same unit price 
80.28 	specified in the lowest bid received on January 25, 2008, with a contract amount equal 
80.29 	to the product of the specified unit prices as bid on January 25, 2008, and the pay item 
80.30 	quantities. Pay items in the contract for state project number 6915-129 that are described 
80.31 	only in the bidding documents on file in the office of the commissioner of transportation 
80.32 	for advertisement on May 16, 2008, must be paid for as "extra work" as provided by 
80.33 	standard specification for construction number 1403.
80.34 		Subd. 7.Federal funding. The commissioner of transportation shall proceed 
80.35 	with state project number 6915-129, unless a final determination is made by the federal 
81.1 	government that costs of this project will not be reimbursed with federal-aid highway 
81.2 	funds.

81.3 	EFFECTIVE DATE. Subdivision 3 is effective the day after the governing bodies 
81.4 	of St. Louis County, the city of Duluth, and the city of Hermantown and their chief clerical 
81.5 	officers comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3. The 
81.6 	remaining subdivisions in this section are effective the day following final enactment.

81.7 	Sec. 123. HIGHWAY CHANGES; REPEALERS; EFFECTIVE DATES; 
81.8 	REVISOR INSTRUCTIONS.
 81.9 		Subdivision 1.Legislative Route No. 295 removed. (a) Minnesota Statutes, 
81.10 	section 161.115, subdivision 226, is repealed effective the day after the commissioner of 
81.11 	transportation receives a copy of the agreement between the commissioner and the city of 
81.12 	St. Peter to transfer jurisdiction of Legislative Route No. 295 to the city of St. Peter and 
81.13 	notifies the revisor of statutes under paragraph (b).
81.14 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from 
81.15 	Minnesota Statutes when the commissioner of transportation sends notice to the revisor in 
81.16 	writing that the conditions required to transfer the route are satisfied.
81.17 		Subd. 2.Legislative Route No. 335 removed. (a) Minnesota Statutes, section 
81.18 	161.115, subdivision 266, is repealed effective the day after the commissioner of 
81.19 	transportation receives a copy of the agreement between the commissioner and the city of 
81.20 	St. Peter to transfer jurisdiction of Legislative Route No. 335 to the city of St. Peter and 
81.21 	notifies the revisor of statutes under paragraph (b).
81.22 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from 
81.23 	Minnesota Statutes when the commissioner of transportation sends notice to the revisor in 
81.24 	writing that the conditions required to transfer the route are satisfied.

81.25 	Sec. 124. INFRASTRUCTURE ADAPTATIONS.
 81.26 	The commissioner of transportation shall investigate and recommend opportunities 
81.27 	for infrastructure adaptations to accommodate the implementation of manure application 
81.28 	technologies that lessen impacts on roads and bridges.

81.29 	Sec. 125. REPORT ON OFFICE OF PUPIL TRANSPORTATION SAFETY.
 81.30 	By January 15, 2009, the commissioner of pupil transportation safety and the director 
81.31 	of pupil transportation safety must report to the chairs and ranking minority members of 
81.32 	the senate and house of representatives committees with jurisdiction over transportation 
81.33 	and education policy and finance concerning the Office of Pupil Transportation Safety, 
82.1 	including adequacy of funding, staffing levels, available technology to carry out the 
82.2 	requirements of Minnesota Statutes, section 169.435, and any recommended legislation to 
82.3 	improve the ability of the pupil transportation safety director to perform statutory duties.

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

82.5 	Sec. 126. COMPLETE STREETS.
 82.6 	The commissioner of transportation, in cooperation with the Metropolitan Council 
82.7 	and representatives of counties, statutory and home rule charter cities, and towns, shall 
82.8 	study the benefits, feasibility, and cost of adopting a complete streets policy applicable to 
82.9 	plans to construct, reconstruct, and relocate streets and roads that includes the following 
82.10 	elements:
82.11 	(1) safe access for all users, including pedestrians, bicyclists, motorists, and transit 
82.12 	riders;
82.13 	(2) bicycle and pedestrian ways in urbanized areas except where bicyclists and 
82.14 	pedestrians are prohibited by law, where costs would be excessively disproportionate, and 
82.15 	where there is no need for bicycle and pedestrian ways;
82.16 	(3) paved shoulders on rural roads;
82.17 	(4) safe pedestrian travel, including for people with disabilities, on sidewalks and 
82.18 	street crossings;
82.19 	(5) utilization of the latest and best design standards; and
82.20 	(6) consistency of complete streets plan with community context.
82.21 	The commissioner shall report findings, conclusions, and recommendations to 
82.22 	the senate Transportation Budget and Policy Division and the house of representatives 
82.23 	Transportation Finance Division and Transportation and Transit Policy Subcommittee by 
82.24 	December 5, 2008.

82.25 	Sec. 127. RIGHT-OF-WAY TRANSFERRED TO STATE RAIL BANK.
 82.26 	(a) Notwithstanding Minnesota Statutes, section 16B.281, 16B.282, 92.45, or any 
82.27 	other law to the contrary, the trunk highway right-of-way described in paragraph (b) is 
82.28 	hereby transferred to the state rail bank under Minnesota Statutes, section 222.63, being 
82.29 	a certain parcel of land located in the county of Otter Tail, state of Minnesota, being 
82.30 	more particularly described in paragraph (b).
82.31 	(b) All of Tracts A, B, and C described below:
82.32 	TRACT A
83.1 	That part of Government Lot 1 of Section 12, Township 132 North, Range 
83.2 	43 West, Otter Tail County, Minnesota, lying Northeasterly of the former 
83.3 	Southwesterly right-of-way line of the BNSF Railway Company (formerly the 
83.4 	St. Paul, Minneapolis and Manitoba Railway Company);
83.5 	TRACT B
83.6 	A strip of land 150 feet in width, being 75 feet on each side of the former 
83.7 	centerline of the BNSF Railway Company (formerly the St. Paul, Minneapolis 
83.8 	and Manitoba Railway Company) across the SW1/4NW1/4 of Section 12, 
83.9 	Township 132 North, Range 43 West, Otter Tail County, Minnesota, said strip 
83.10 	extending from the South line to the West line of said SW1/4NW1/4; together 
83.11 	with that part of said SW1/4NW1/4 adjoining and Westerly of the above 
83.12 	described strip and Easterly of the Easterly right-of-way line of said railroad 
83.13 	company as located prior to 1888;
83.14 	TRACT C
83.15 	A strip of land 100 feet in width, being 50 feet on each side of the former 
83.16 	centerline of the BNSF Railway Company (formerly the St. Paul, Minneapolis 
83.17 	and Manitoba Railway Company) across the E1/2NE1/4 of Section 11, 
83.18 	Township 132 North, Range 43 West, Otter Tail County, Minnesota, said strip 
83.19 	extending from the East to the North line of said E1/2NE1/4;
83.20 	together with that part of Tract D described below:
83.21 	TRACT D
83.22 	A strip of land 100 feet in width, being 50 feet on each side of the former 
83.23 	centerline of the BNSF Railway Company (formerly the St. Paul, Minneapolis 
83.24 	and Manitoba Railway Company) across the E1/2 of Section 2, Township 132 
83.25 	North, Range 43 West, Otter Tail County, Minnesota;
83.26 	which lies Southeasterly of a line run parallel with and distant 135 feet Southeasterly of 
83.27 	Line 1 described below:
83.28 	LINE 1.
83.29 	Beginning at a point on the North and South Quarter line of said Section 2, 
83.30 	distant 1,060.11 feet North of the South Quarter corner thereof; thence run 
83.31 	Northeasterly at an angle of 72Â°36'15" (measured from North to East) from said 
83.32 	North and South Quarter line for 1,600 feet and there terminating;
83.33 	together with all right of access, being the right of ingress to and egress from that part of 
83.34 	Tract D hereinbefore described, not acquired herein, to the above described strip.

84.1 	Sec. 128. APPROPRIATION.
 84.2 	$1,000,000 is appropriated from the trunk highway fund to the commissioner 
84.3 	of public safety in fiscal year 2009 to implement and operate the Office of Pupil 
84.4 	Transportation Safety.

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

84.6 	Sec. 129.  REPEALER.
 84.7 	Minnesota Statutes 2006, sections 161.3426, subdivision 2; 168.123, subdivision 2a; 
84.8 	169.145; 169.446, subdivision 3; 221.121, subdivision 4; and 473.4461, are repealed.

84.9 	ARTICLE 2
84.10 	TRANSPORTATION DEVELOPMENT

84.11 	Section 1. Minnesota Statutes 2006, section 161.081, subdivision 3, as amended by 
84.12 	Laws 2008, chapter 152, article 6, section 4, is amended to read:
84.13 		Subd. 3. Flexible highway account; turnback other accounts. (a) The flexible 
84.14 	highway account is created in the state treasury. Money in The account commissioner
84.15 	shall be used: 
84.16 	(1) annually transfer in fiscal years 2009 and 2010 and 2011, 100 percent of the 
84.17 	excess sum, as calculated in paragraph (i), and in fiscal years 2011 2012 and thereafter, 50 
84.18 	percent of the excess sum, as calculated in paragraph (i), for counties in the metropolitan 
84.19 	area, as defined in section 473.121, subdivision 4, but for the purposes of the calculation 
84.20 	cities of the first class will be excluded in the metropolitan area; and to the metropolitan 
84.21 	routes of regional significance account under subdivision 4; and
84.22 	(2) of expend the amount available in the flexible highway account less the amount, 
84.23 	after the transfer under clause (1), as determined by the commissioner under this section
84.24 	subdivision, for: 
84.25 	(i) restoration of former trunk highways that have reverted to counties or to statutory 
84.26 	or home rule charter cities, or for trunk highways that will be restored and subsequently 
84.27 	turned back by agreement between the commissioner and the local road authority; 
84.28 	(ii) safety improvements on county highways, municipal highways, streets, or town 
84.29 	roads; and 
84.30 	(iii) statewide routes of regional significance. 
84.31 	(b) For purposes of this subdivision, "restoration" means the level of effort required 
84.32 	to improve the route that will be turned back to an acceptable condition as determined 
85.1 	by agreement made between the commissioner and the county or city before the route 
85.2 	is turned back. 
85.3 	(c) The commissioner shall review the need for funds to restore highways that have 
85.4 	been or will be turned back. The commissioner shall determine, on a biennial basis, the 
85.5 	percentage of funds in the flexible highway account to be distributed to each district, 
85.6 	and within each district the percentage to be used for each of the purposes specified in 
85.7 	paragraph (a), clause (2). Money in the account may be used for safety improvements 
85.8 	and routes of regional significance only after money is set aside to restore the identified 
85.9 	turnbacks. The commissioner shall make these determinations only after meeting and 
85.10 	holding discussions with committees selected by the statewide associations of both county 
85.11 	commissioners and municipal officials. The commissioner shall, to the extent feasible, 
85.12 	annually allocate 50 percent of the funds in the flexible highway account under paragraph 
85.13 	(a), clause (2), to the department's metropolitan district, and 50 percent to districts in 
85.14 	greater Minnesota. 
85.15 	(d) Money that will be used for the restoration of trunk highways that have reverted 
85.16 	or that will revert to cities must be deposited in the municipal turnback account, which is 
85.17 	created in the state treasury. 
85.18 	(e) Money that will be used for the restoration of trunk highways that have reverted 
85.19 	or that will revert to counties must be deposited in the county turnback account, which is 
85.20 	created in the state treasury. 
85.21 	(f) Money that will be used for safety improvements must be deposited in the 
85.22 	highway safety improvement account, which is created in the state treasury to be used 
85.23 	as grants to statutory or home rule charter cities, towns, and counties to assist in paying 
85.24 	the costs of constructing or reconstructing city streets, county highways, or town roads 
85.25 	to reduce crashes, deaths, injuries, and property damage. 
85.26 	(g) Money that will be used for statewide routes of regional significance must be 
85.27 	deposited in the statewide routes of regional significance account, which is created in 
85.28 	the state treasury, and used as grants to statutory or home rule charter cities, towns, and 
85.29 	counties to assist in paying the costs of constructing or reconstructing city streets, county 
85.30 	highways, or town roads with statewide or regional significance that have not been fully 
85.31 	funded through other state, federal, or local funding sources. 
85.32 	(h) As part of each biennial budget submission to the legislature, the commissioner 
85.33 	shall describe how the money in the flexible highway account will be apportioned among 
85.34 	the county turnback account, the municipal turnback account, the trunk highway fund for 
85.35 	routes turned back to local governments by agreement, the highway safety improvement 
85.36 	account, and the statewide routes of regional significance account. 
86.1 	(i) The excess sum is calculated as the sum of revenue within the flexible highway 
86.2 	account: 
86.3 	(1) attributed to that portion of the gasoline excise tax rate under section 296A.07, 
86.4 	subdivision 3, in excess of 20 cents per gallon, and to that portion of the excise tax rates 
86.5 	in excess of the energy equivalent of a gasoline excise tax rate of 20 cents per gallon 
86.6 	for E85 and M85 under section 296A.07, subdivision 3, and special fuel under section 
86.7 	296A.08, subdivision 2; 
86.8 	(2) attributed to a change in the passenger vehicle registration tax under section 
86.9 	168.013, imposed on or after July 1, 2008, that exceeds (i) the amount collected in fiscal 
86.10 	year 2008, multiplied by (ii) the annual average United States Consumer Price Index for 
86.11 	the calendar year previous to the current calendar year, divided by the annual average 
86.12 	United States Consumer Price Index for calendar year 2007; and 
86.13 	(3) attributed to that portion of the motor vehicle sales tax revenue in excess of the 
86.14 	percentage allocated to the flexible highway account in fiscal year 2007. 
86.15 	(j) For purposes of this subdivision, the United States Consumer Price Index 
86.16 	identified in paragraph (i), clause (2), is for all urban consumers, United States city 
86.17 	average, as determined by the United States Department of Labor. 

86.18 	Sec. 2. Minnesota Statutes 2006, section 161.081, is amended by adding a subdivision 
86.19 	to read:
86.20 		Subd. 4.Metropolitan routes of regional significance account. (a) For purposes 
86.21 	of this subdivision, the following terms have the meanings given them:
86.22 	(1) "metropolitan area" has the meaning given in section 473.121, subdivision 4; and
86.23 	(2) "population" has the meaning given in section 477A.011, subdivision 3, except 
86.24 	that it excludes the three most populous cities in the metropolitan area.
86.25 	(b) The metropolitan routes of regional significance account is created in the state 
86.26 	treasury. Funds in the account are for allocation to metropolitan counties to assist in 
86.27 	paying the costs of construction, reconstruction, or maintenance of county highways with 
86.28 	statewide or regional significance that have not been fully funded through other state, 
86.29 	federal, or local funding sources.
86.30 	(c) The commissioner shall allocate funds in the account to counties in the 
86.31 	metropolitan area so that each county receives an amount proportional to the percentage 
86.32 	that its population, estimated or established by July 15 of the year prior to the current 
86.33 	calendar year, bears to the total population of the counties receiving funds under this 
86.34 	subdivision.

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

87.1 	Sec. 3. Minnesota Statutes 2006, section 161.081, is amended by adding a subdivision 
87.2 	to read:
87.3 		Subd. 5.Excess sum. (a) For purposes of this section, "excess sum" means an 
87.4 	amount calculated by the commissioner as the sum of revenue within the flexible highway 
87.5 	account:
87.6 	(1) attributed to that portion of the gasoline excise tax rate under section 296A.07, 
87.7 	subdivision 3, in excess of 20 cents per gallon, and to that portion of the excise tax rates 
87.8 	in excess of the energy equivalent of a gasoline excise tax rate of 20 cents per gallon 
87.9 	for E85 and M85 under section 296A.07, subdivision 3, and special fuel under section 
87.10 	296A.08, subdivision 2; 
87.11 	(2) attributed to a change in the passenger vehicle registration tax under section 
87.12 	168.013, imposed on or after July 1, 2008, that exceeds (i) the amount collected in fiscal 
87.13 	year 2008, multiplied by (ii) the annual average United States Consumer Price Index for 
87.14 	the calendar year previous to the current calendar year, divided by the annual average 
87.15 	United States Consumer Price Index for calendar year 2007; and 
87.16 	(3) attributed to that portion of the motor vehicle sales tax revenue in excess of the 
87.17 	percentage allocated to the flexible highway account in fiscal year 2007. 
87.18 	(b) For purposes of this subdivision, the United States Consumer Price Index 
87.19 	identified in paragraph (a), clause (2), is for all urban consumers, United States city 
87.20 	average, as determined by the United States Department of Labor.

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

87.22 	Sec. 4. Laws 2008, chapter 152, article 1, section 6, is amended to read:
87.23 	Sec. 6. VALUE CAPTURE STUDY; APPROPRIATION.
 87.24 		Subdivision 1. Findings. The legislature finds that large public investments in state 
87.25 	transportation infrastructure, such as constructing freeway interchanges, new highways, 
87.26 	and rail transit stations, can result in surrounding private land and other property increasing 
87.27 	in value, sometimes by substantial amounts. The special assessment law, Minnesota 
87.28 	Statutes, chapter 429, provides a method for local governments to use similar private or 
87.29 	special benefits to help finance local streets, roads, and other transportation improvements. 
87.30 	However, the law does not provide the state with a similar financing mechanism and 
87.31 	the nature of a large state transportation project may suggest that alternative financing 
87.32 	mechanisms are more appropriate. 
87.33 		Subd. 2. Appropriation; study. $325,000 is appropriated from the general fund to 
87.34 	the Board of Regents of the University of Minnesota for the Center for Transportation 
87.35 	Studies to complete a study to assess the public policy implications of financing new and 
88.1 	improved transportation infrastructure in Minnesota through capturing the value of the 
88.2 	benefits created, to prepare a report on its findings, and to conduct a series of workshops. 
88.3 	This is a onetime appropriation and is available in fiscal years 2008 and, 2009, and 2010. 
88.4 		Subd. 3. Report; workshops. The Center for Transportation Studies must report its 
88.5 	preliminary findings to the legislature by March 1, 2009, and must issue its full report 
88.6 	by July 1, 2009. The Center for Transportation must also offer a series of educational 
88.7 	workshops for elected officials during the summer and fall of 2009. 

88.8 	Sec. 5. Laws 2008, chapter 152, article 2, section 1, is amended to read:
88.9 	Section 1. [296A.083] DEBT SERVICE SURCHARGE. 
88.10 		Subdivision 1. Definitions. For purposes of this section, the following terms have 
88.11 	the meanings given them: 
88.12 	(1) "debt service" means the amount of principal and interest in each fiscal year 
88.13 	attributable to the trunk highway bonds authorized in this article; and 
88.14 	(2) "surcharge" means the rate imposed under this section on gasoline taxed under 
88.15 	section 296A.07, subdivision 3, clause (3), and includes a proportional rate for each type 
88.16 	of fuel taxed under sections 296A.07, subdivision 3, clauses (1) and (2), and 296A.08, 
88.17 	subdivision 2. 
88.18 		Subd. 2. Debt service forecast. On June 30, 2008, and each March 1 thereafter, the 
88.19 	commissioner of finance shall report to the commissioner of revenue on trunk highway 
88.20 	debt service. The report must include the annual amount of revenue from the surcharge 
88.21 	previously deposited in transferred to the trunk highway fund, and a forecast of the total 
88.22 	and annual amounts necessary to pay the remaining debt service. 
88.23 		Subd. 3. Surcharge rate. (a) By July 16, 2008, and each April 1 thereafter, the 
88.24 	commissioner of revenue shall calculate and publish a surcharge as provided in paragraphs 
88.25 	(b) and (c). The surcharge is imposed from August 1, 2008, through June 30, 2009, and 
88.26 	each new surcharge thereafter is imposed the following July 1 through June 30. 
88.27 	(b) For fiscal years 2009 through 2012, the commissioner shall set the surcharge as 
88.28 	specified in the following surcharge rate schedule. 

88.29	Surcharge Rate Schedule 
		
88.30
88.31	Fiscal Year 
	Rate (in cents 
per gallon) 
		
88.32	2009 
	0.5 
		
88.33	2010 
	2.1 
		
88.34	2011 
	2.5 
		
88.35	2012 
	3.0 
		
89.1 	(c) For fiscal year 2013 and thereafter, the commissioner shall set the surcharge at 
89.2 	the lesser of (1) 3.5 cents, or (2) an amount calculated so that the total proceeds from the 
89.3 	surcharge deposited in the trunk highway fund from fiscal year 2009 to the upcoming 
89.4 	fiscal year equals the total amount of debt service from fiscal years 2009 to 2039, and the 
89.5 	surcharge is rounded to the nearest 0.1 cent. 
89.6 		Subd. 4.Surcharge administration. The audit, assessment, appeal, collection, 
89.7 	enforcement, penalty, interest, refund and administrative provisions that apply to the taxes 
89.8 	in chapter 296A apply to the surcharge imposed by this section. The surcharge is not to be 
89.9 	used in calculating the credit in section 296A.16, subdivision 5.

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

89.11 	Sec. 6. Laws 2008, chapter 152, article 2, section 3, subdivision 2, is amended to read:

89.12	Subd. 2. State Road Construction
 				1,717,694,000 
	
89.13 	(a) For the actual construction, 
89.14 	reconstruction, and improvement of 
89.15 	trunk highways, including design-build 
89.16 	contracts and consultant usage to support 
89.17 	these activities. This includes the cost 
89.18 	of actual payments to landowners for 
89.19 	lands acquired for highway rights-of-way, 
89.20 	payments to lessees, interest subsidies, and 
89.21 	relocation expenses. This appropriation is in 
89.22 	the following amounts: 
89.23 	(1) $417,694,000 in fiscal year 2009, and the 
89.24 	commissioner may use up to $71,008,000 of 
89.25 	this amount for program delivery; 
89.26 	(2) $500,000,000 in fiscal year 2010, and the 
89.27 	commissioner may use up to $85,000,000 of 
89.28 	this amount for program delivery; and 
89.29 	(3) $100,000,000 in each fiscal year for 
89.30 	fiscal years 2011 through 2018, and the 
89.31 	commissioner may use up to $17,000,000 of 
89.32 	the amount in each fiscal year for program 
89.33 	delivery. 
90.1 	(b) Of the amount in fiscal year 2009, 
90.2 	$40,000,000 is for construction of 
90.3 	interchanges and intersections involving 
90.4 	a trunk highway, where the interchange
90.5 	or intersection will promote economic 
90.6 	development, increase employment, relieve 
90.7 	growing traffic congestion, and promote 
90.8 	traffic safety. The amount under this 
90.9 	paragraph must be allocated 50 percent to 
90.10 	the department's metropolitan district, and 50 
90.11 	percent to districts in greater Minnesota. 
90.12 	(c) Of the amount in fiscal years 2009 
90.13 	and 2010, the commissioner shall use 
90.14 	$300,000,000 each year for predesign, 
90.15 	design, preliminary engineering, 
90.16 	right-of-way acquisition, reasonable 
90.17 	approaches, construction, reconstruction, 
90.18 	and maintenance of bridges in the trunk 
90.19 	highway bridge improvement program under 
90.20 	Minnesota Statutes, section 165.14. 
90.21 	(d) Of the total appropriation under this 
90.22 	subdivision, the commissioner shall use at 
90.23 	least $50,000,000 for accelerating transit 
90.24 	facility improvements on or adjacent to trunk 
90.25 	highways. 
90.26 	(e) Of the total appropriation under this 
90.27 	subdivision provided to the Department of 
90.28 	Transportation's district 7, the commissioner 
90.29 	shall first expend funds as necessary to 
90.30 	accelerate all projects that (1) are on a trunk 
90.31 	highway classified as a medium priority 
90.32 	interregional corridor, (2) are included in the 
90.33 	district's long-range transportation plan, but 
90.34 	are not included in the state transportation 
90.35 	improvement program or the ten-year 
91.1 	highway work plan, and (3) expand capacity 
91.2 	from a two-lane highway to a freeway 
91.3 	or expressway, as defined in Minnesota 
91.4 	Statutes, section 160.02, subdivision 19. The 
91.5 	commissioner shall establish as the highest 
91.6 	priority under this paragraph any project that 
91.7 	currently has a final environmental impact 
91.8 	statement completed. The requirement 
91.9 	under this paragraph does not change the 
91.10 	department's funding allocation process 
91.11 	or the amount otherwise allocated to each 
91.12 	transportation district. 

91.13 	Sec. 7. Laws 2008, chapter 152, article 3, section 1, the effective date, is amended to 
91.14 	read:

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

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

91.19 	Sec. 8. Laws 2008, chapter 152, article 3, section 8, is amended to read:
91.20 	Sec. 8. Minnesota Statutes 2006, section 297A.815, is amended by adding a 
91.21 	subdivision to read: 
91.22 		Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this 
91.23 	subdivision, "net revenue" means an amount equal to: 
91.24 	(1) the revenues, including interest and penalties, collected under section 297A.815, 
91.25 	during the fiscal year; less 
91.26 	(2) the estimated reduction in individual income tax receipts and the estimated 
91.27 	amount of refunds paid out under section 290.06, subdivision 34, for the fiscal year. 
91.28 	(b) On or before June 30 of each fiscal year, the commissioner of revenue shall 
91.29 	estimate the amount of the revenues and subtraction under paragraph (a) for the current 
91.30 	fiscal year. 
91.31 	(c) On or after July 1 of the subsequent fiscal year, the commissioner of finance shall 
91.32 	transfer the net revenue as estimated in paragraph (b) from the general fund, as follows: 
91.33 	(1) 50 percent to the greater Minnesota transit account; and 
92.1 	(2) 50 percent to the county state-aid highway fund. Notwithstanding any other law 
92.2 	to the contrary, the commissioner of transportation shall allocate the funds transferred 
92.3 	under this clause to the counties in the metropolitan area, as defined in section 473.121, 
92.4 	subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall 
92.5 	receive of such amount the percentage that its population, as defined in section 477A.011, 
92.6 	subdivision 3, estimated or established by July 15 of the year prior to the current calendar 
92.7 	year, bears to the total population of the counties receiving funds under this clause
92.8 	metropolitan routes of regional significance account under section 161.081, subdivision 4. 
92.9 	(d) For fiscal years 2010 and 2011, the amount under paragraph (a), clause (1), must 
92.10 	be calculated using the following percentages of the total revenues: 
92.11 	(1) for fiscal year 2010, 83.75 percent; and 
92.12 	(2) for fiscal year 2011, 93.75 percent. 

92.13 	Sec. 9. Laws 2008, chapter 152, article 4, section 2, subdivision 1, is amended to read:
92.14 		Subdivision 1. Definitions. For purposes of this section, the following terms have 
92.15 	the meanings given them: 
92.16 	(1) "metropolitan transportation area" means the counties participating in the joint 
92.17 	powers agreement under subdivision 3; 
92.18 	(2) "eligible county" means the county of Anoka, Carver, Dakota, Hennepin, 
92.19 	Ramsey, Scott, or Washington; 
92.20 	(3) "committee" means the Grant Evaluation and Ranking System (GEARS) 
92.21 	Committee; 
92.22 	(4) "minimum guarantee county" means any metropolitan county or eligible county 
92.23 	that is participating in the joint powers agreement under subdivision 3, whose proportion 
92.24 	of the annual sales tax revenue under this section collected within that county is less 
92.25 	than or equal to three percent; and 
92.26 	(5) "population" means the population, as defined in section 477A.011, subdivision 
92.27 	3, estimated or established by July 15 of the year prior to the calendar year in which 
92.28 	the representatives will serve on the Grant Evaluation and Ranking System Committee 
92.29 	established under subdivision 5. 

92.30 	EFFECTIVE DATE. This section is effective retroactively from the effective 
92.31 	date of Laws 2008, chapter 152, article 4, section 2, subdivision 1. This section expires 
92.32 	October 2, 2008, if the sales and use tax under subdivision 2 has not been imposed.

92.33 	Sec. 10. Laws 2008, chapter 152, article 6, section 7, is amended to read:
92.34 	Sec. 7. [398A.10] TRANSIT FUNDING.
93.1 		Subdivision 1. Capital costs. A county regional railroad authority may not 
93.2 	contribute more than ten percent of the capital costs of a light rail transit or commuter rail 
93.3 	project. This subdivision does not apply to a light rail transit project for which a county 
93.4 	regional railroad authority commits to providing an amount greater than ten percent of 
93.5 	the capital costs, if the commitment (1) is made before October 2, 2008, (2) is made as 
93.6 	part of an application for federal funds, and (3) is adjusted by the county regional railroad 
93.7 	authority to meet the requirements of this subdivision as part of the next scheduled federal 
93.8 	funding application for the project.
93.9 		Subd. 2. Operating and maintenance costs. A county regional railroad authority 
93.10 	may not contribute any funds to pay the operating and maintenance costs for a light rail 
93.11 	transit or commuter rail project. If a county regional railroad authority is contributing 
93.12 	funds for operating and maintenance costs on a light rail transit or commuter rail project 
93.13 	on the date of the enactment of this act, the authority may continue to contribute funds 
93.14 	for these purposes until January 1, 2009. 
93.15 		Subd. 3. Application. This section only applies if a county has imposed the 
93.16 	metropolitan transportation sales and use tax under section 297A.992. 

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