1.1 	A bill for an act
1.2 	relating to transportation; appropriating money for transportation, Metropolitan 
1.3 	Council, and public safety activities and programs; providing for fund transfers, 
1.4 	contingent appropriations, and tort claims; modifying previous appropriations; 
1.5 	authorizing sale of trunk highway bonds; modifying various provisions related 
1.6 	to transportation finance and policy; providing for and modifying disposition 
1.7 	of various fees, revenues, and accounts; clarifying appropriate uses of trunk 
1.8 	highway fund; providing for mitigation of transportation construction impacts on 
1.9 	business; increasing set-aside from municipal state-aid fund for administrative 
1.10 	costs; establishing Stillwater lift bridge endowment account; regulating records 
1.11 	of commercial drivers; modifying provisions related to transit services, 
1.12 	fracture-critical bridges, passenger rail, and motor vehicle sales tax revenue 
1.13 	allocations; establishing discount transit passes pilot program; authorizing 
1.14 	Metropolitan Council to convey certain real property including the Apple Valley 
1.15 	Transit Station; establishing Design-Build Project Selection Council and pilot 
1.16 	program; adding provisions relating to bus purchases and a Mississippi River 
1.17 	crossing near St. Cloud; requiring reports;amending Minnesota Statutes 2008, 
1.18 	sections 16A.152, subdivision 2; 161.20, subdivision 3; 162.12, subdivision 2; 
1.19 	168.017, subdivision 5; 168.021, subdivision 4; 168.10, subdivision 1i; 168.29; 
1.20 	168.62, subdivision 3; 174.24, subdivisions 1a, 5, by adding a subdivision; 
1.21 	174.50, by adding a subdivision; 297B.09, subdivision 1; 473.408, by adding 
1.22 	a subdivision; Laws 2007, chapter 143, article 1, section 3, subdivision 2, 
1.23 	as amended; Laws 2008, chapter 152, article 1, sections 3, subdivision 2; 5; 
1.24 	proposing coding for new law in Minnesota Statutes, chapters 160; 165; 171; 174.
1.25 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.26 	ARTICLE 1
1.27 	TRANSPORTATION APPROPRIATIONS

1.28	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
1.29 	The amounts shown in this section summarize direct appropriations, by fund, made 
1.30 	in this article.

1.31			2010
		2011
		Total
	
1.32	General
	$
	98,385,000
	$
	95,885,000
	$
	194,270,000
	
2.1	Airports
		21,909,000
		19,659,000
		41,568,000
	
2.2	C.S.A.H.
		496,786,000
		524,478,000
		 1,021,264,000
	
2.3	M.S.A.S.
		134,003,000
		141,400,000
		275,403,000
	
2.4	Special Revenue
		49,038,000
		49,038,000
		98,076,000
	
2.5	H.U.T.D.
		9,538,000
		9,838,000
		19,376,000
	
2.6	Trunk Highway
		1,264,921,000
		1,372,687,000
		2,637,608,000
	
2.7	Total
	$
	2,074,580,000
	$
	2,212,985,000
	$
	4,287,565,000

2.8	Sec. 2. TRANSPORTATION APPROPRIATIONS.
 	
2.9 	The sums shown in the columns marked "Appropriations" are appropriated to 
2.10 	the agencies and for the purposes specified in this article.  The appropriations are from 
2.11 	the trunk highway fund, or another named fund, and are available for the fiscal years 
2.12 	indicated for each purpose.  The figures "2010" and "2011" used in this article mean that 
2.13 	the appropriations listed under them are available for the fiscal year ending June 30, 2010, 
2.14 	or June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is 
2.15 	fiscal year 2011. "The biennium" is fiscal years 2010 and 2011.  Appropriations for the 
2.16 	fiscal year ending June 30, 2009, are effective the day following final enactment.

2.17				APPROPRIATIONS
	
2.18				Available for the Year
	
2.19				Ending June 30
	
2.20					2010
		2011

2.21
2.22	Sec. 3. DEPARTMENT OF 
TRANSPORTATION

2.23	Subdivision 1.Total Appropriation
 	$
	1,848,892,000
	$
	1,987,197,000

2.24	Appropriations by Fund
	
2.25		2010
	2011
	
2.26	General
	18,191,000
	15,691,000
	
2.27	Airports
	21,859,000
	19,609,000
	
2.28	C.S.A.H.
	496,786,000
	524,478,000
	
2.29	M.S.A.S.
	134,003,000
	141,400,000
	
2.30	Trunk Highway
	1,178,053,000
	1,286,019,000
	
2.31 	The amounts that may be spent for each 
2.32 	purpose are specified in the following 
2.33 	subdivisions.

2.34	Subd.  2.Multimodal Systems

2.35	(a) Aeronautics

2.36	(1) Airport Development and Assistance
		16,548,000
		14,298,000
	
3.1 	This appropriation is from the state 
3.2 	airports fund and must be spent according 
3.3 	to Minnesota Statutes, section 360.305, 
3.4 	subdivision 4.
3.5 	Notwithstanding Minnesota Statutes, section 
3.6 	360.305, subdivision 4, paragraph (c), 
3.7 	of the appropriation in fiscal year 2010, 
3.8 	the commissioner may provide a local 
3.9 	contribution for aeronautics project elements 
3.10 	if:
3.11 	(1) federal funds are made available for the 
3.12 	project in federal fiscal year 2009 by the 
3.13 	United States Department of Transportation, 
3.14 	Federal Aviation Administration from the 
3.15 	airport improvement program under United 
3.16 	States Code, title 49, section 47101, et seq.;
3.17 	(2) the project requires a five percent match 
3.18 	from nonfederal sources; and
3.19 	(3) the airport is not classified as a key 
3.20 	system airport, as provided in Minnesota 
3.21 	Statutes, section 360.305, subdivision 3.
3.22 	Notwithstanding Minnesota Statutes, section 
3.23 	16A.28, subdivision 6, this appropriation is 
3.24 	available for five years after appropriation. 
3.25 	If the appropriation for either year is 
3.26 	insufficient, the appropriation for the other 
3.27 	year is available for it.
3.28 	If the appropriation for either year does not 
3.29 	exhaust the balance in the state airports fund, 
3.30 	the commissioner of finance, upon request 
3.31 	of the commissioner of transportation, 
3.32 	shall notify the chairs and ranking minority 
3.33 	members of the senate and house of 
3.34 	representatives committees with jurisdiction 
3.35 	over transportation finance of the amount 
4.1 	of the remainder and shall then add that 
4.2 	amount to the appropriation. The amount 
4.3 	added is appropriated for the purpose of 
4.4 	airport development and assistance and must 
4.5 	be spent according to Minnesota Statutes, 
4.6 	section 360.305, subdivision 4.

4.7	(2) Aviation Support and Services
		6,123,000
		6,123,000

4.8	Appropriations by Fund
	
4.9	Airports
	5,286,000
	5,286,000
	
4.10	Trunk Highway
	837,000
	837,000
	
4.11 	$65,000 the first year and $65,000 the second 
4.12 	year from the state airports fund are for the 
4.13 	Civil Air Patrol.

4.14	(b) Transit
		18,036,000
		15,536,000

4.15	Appropriations by Fund
	
4.16	General
	17,261,000
	14,761,000
	
4.17	Trunk Highway
	775,000
	775,000
	
4.18 	The base appropriation from the general fund 
4.19 	for fiscal years 2012 and 2013 is $17,261,000 
4.20 	for each year.
4.21 	Of these appropriations from the general 
4.22 	fund, $19,300 in each year is for the 
4.23 	administrative expenses of the Minnesota 
4.24 	Council on Transportation Access, and for 
4.25 	other costs relating to the preparation of 
4.26 	required reports, including the costs of hiring 
4.27 	a consultant, if the council is created.

4.28	(c) Commuter and Passenger Rail
		500,000
		500,000
	
4.29 	This appropriation is from the general fund 
4.30 	for (1) development of the comprehensive 
4.31 	statewide freight and passenger rail plan 
4.32 	under Minnesota Statutes, section 174.03, 
4.33 	subdivision 1b, and (2) passenger rail 
4.34 	system planning, alternatives analysis, 
5.1 	environmental analysis, design, preliminary 
5.2 	engineering, and land acquisition under 
5.3 	Minnesota Statutes, sections 174.632 to 
5.4 	174.636.

5.5	(d) Freight
		5,262,000
		5,262,000

5.6	Appropriations by Fund
	
5.7	General
	365,000
	365,000
	
5.8	Trunk Highway
	4,897,000
	4,897,000
	
5.9 	The commissioner of transportation shall 
5.10 	enter into an agreement to either forgive 
5.11 	any money due (approximately $2,851,118) 
5.12 	on loan agreements 65572 and 67106 or 
5.13 	convert the loans to grants. The loans were 
5.14 	made to the Buffalo Ridge Regional Railroad 
5.15 	Authority, which was established by Rock 
5.16 	and Nobles Counties, to enable the counties 
5.17 	to purchase and rehabilitate 41.4 miles of rail 
5.18 	line providing transportation service to the 
5.19 	counties. The agreement must ensure that all 
5.20 	terms, provisions, and conditions of the loan 
5.21 	agreements are deemed to be fully satisfied 
5.22 	and performed on the part of the railroad 
5.23 	authority and counties. If the railroad 
5.24 	authority sells all or any part of the rail line 
5.25 	that has been rehabilitated with either of the 
5.26 	loans, the railroad authority must pay the 
5.27 	net proceeds to the commissioner, up to the 
5.28 	amount loaned.

5.29	Subd. 3.State Roads

5.30	(a) Infrastructure Operations and Maintenance
		251,643,000
		245,892,000
	
5.31 	The base appropriation for fiscal years 2012 
5.32 	and 2013 is $257,395,000 for each year.

5.33	(b) Infrastructure Investment and Planning

5.34	(1) Infrastructure Investment Support
		201,461,000
		196,935,000
	
6.1 	The base appropriation for fiscal years 2012 
6.2 	and 2013 is $205,988,000 for each year.
6.3 	$266,000 the first year and $266,000 the 
6.4 	second year are available for grants to 
6.5 	metropolitan planning organizations outside 
6.6 	the seven-county metropolitan area.
6.7 	$75,000 the first year and $75,000 the 
6.8 	second year are for a transportation research 
6.9 	contingent account to finance research 
6.10 	projects that are reimbursable from the 
6.11 	federal government or from other sources. 
6.12 	If the appropriation for either year is 
6.13 	insufficient, the appropriation for the other 
6.14 	year is available for it.
6.15 	$600,000 the first year and $600,000 
6.16 	the second year are available for grants 
6.17 	for transportation studies outside the 
6.18 	metropolitan area to identify critical 
6.19 	concerns, problems, and issues. These 
6.20 	grants are available (1) to regional 
6.21 	development commissions; (2) in regions 
6.22 	where no regional development commission 
6.23 	is functioning, to joint powers boards 
6.24 	established under agreement of two or 
6.25 	more political subdivisions in the region to 
6.26 	exercise the planning functions of a regional 
6.27 	development commission; and (3) in regions 
6.28 	where no regional development commission 
6.29 	or joint powers board is functioning, to the 
6.30 	department's district office for that region.

6.31	(2) State Road Construction
		551,300,000
		598,700,000
	
6.32 	The base appropriation for fiscal years 2012 
6.33 	and 2013 is $635,000,000 for each year.
6.34 	It is estimated that these appropriations will 
6.35 	be funded as follows:

7.1	Appropriations by Fund
	
7.2
7.3	Federal Highway 
Aid
	301,100,000 
	388,500,000
	
7.4	Highway User Taxes
	250,200,000
	210,200,000
	
7.5 	The commissioner of transportation shall 
7.6 	notify the chairs and ranking minority 
7.7 	members of the senate and house of 
7.8 	representatives committees with jurisdiction 
7.9 	over transportation finance of any significant 
7.10 	events that should cause these estimates to 
7.11 	change.
7.12 	This appropriation is for the actual 
7.13 	construction, reconstruction, and 
7.14 	improvement of trunk highways, including 
7.15 	design-build contracts and consultant usage 
7.16 	to support these activities. This includes the 
7.17 	cost of actual payment to landowners for 
7.18 	lands acquired for highway rights-of-way, 
7.19 	payment to lessees, interest subsidies, and 
7.20 	relocation expenses.
7.21 	The commissioner shall expend up to 
7.22 	one-half of one percent of the federal 
7.23 	appropriations under this paragraph as grants 
7.24 	to opportunity industrialization centers and 
7.25 	other nonprofit job training centers for 
7.26 	job training programs related to highway 
7.27 	construction.
7.28 	The commissioner may transfer up to 
7.29 	$15,000,000 each year to the transportation 
7.30 	revolving loan fund.
7.31 	The commissioner may receive money 
7.32 	covering other shares of the cost of 
7.33 	partnership projects. These receipts are 
7.34 	appropriated to the commissioner for these 
7.35 	projects.

8.1	(3) Highway Debt Service
		101,170,000
		173,400,000
	
8.2 	$86,517,000 the first year and $157,304,000 
8.3 	the second year are for transfer to the state 
8.4 	bond fund. If this appropriation is insufficient 
8.5 	to make all transfers required in the year for 
8.6 	which it is made, the commissioner of finance 
8.7 	shall notify the Committee on Finance of 
8.8 	the senate and the Committee on Ways and 
8.9 	Means of the house of representatives of 
8.10 	the amount of the deficiency and shall then 
8.11 	transfer that amount under the statutory open 
8.12 	appropriation. Any excess appropriation 
8.13 	cancels to the trunk highway fund.

8.14	(c) Electronic Communications
		5,177,000
		5,177,000

8.15	Appropriations by Fund
	
8.16	General
	9,000
	9,000
	
8.17	Trunk Highway
	5,168,000
	5,168,000
	
8.18 	The general fund appropriation is to equip 
8.19 	and operate the Roosevelt signal tower for 
8.20 	Lake of the Woods weather broadcasting.

8.21	Subd.  4.Local Roads  

8.22	(a) County State Aids
		496,786,000
		524,478,000
	
8.23 	This appropriation is from the county 
8.24 	state-aid highway fund and is available until 
8.25 	spent.

8.26	(b) Municipal State Aids
		134,003,000
		141,400,000
	
8.27 	This appropriation is from the municipal 
8.28 	state-aid street fund and is available until 
8.29 	spent.

8.30	(c) State Aid Appropriation Adjustments
					
8.31 	If an appropriation for either county state 
8.32 	aids or municipal state aids does not exhaust 
8.33 	the balance in the fund from which it is 
9.1 	made in the year for which it is made, the 
9.2 	commissioner of finance, upon request of 
9.3 	the commissioner of transportation, shall 
9.4 	notify the chairs and ranking minority 
9.5 	members of the senate and house of 
9.6 	representatives committees with jurisdiction 
9.7 	over transportation finance of the amount of 
9.8 	the remainder and shall then add that amount 
9.9 	to the appropriation. The amount added is 
9.10 	appropriated for the purposes of county state 
9.11 	aids or municipal state aids, as appropriate.
9.12 	If the appropriation for either county 
9.13 	state aids or municipal state aids does 
9.14 	exhaust the balance in the fund from 
9.15 	which it is made in the year for which 
9.16 	it is made, the commissioner of finance 
9.17 	shall notify the chairs and ranking minority 
9.18 	members of the senate and house of 
9.19 	representatives committees with jurisdiction 
9.20 	over transportation finance of the amount by 
9.21 	which the appropriation exceeds the balance 
9.22 	and shall then reduce that amount from the 
9.23 	appropriation.

9.24	Subd.  5.General Support and Services 

9.25	(a) Department Support
		43,440,000
		42,449,000

9.26	Appropriations by Fund
	
9.27	Airports
	25,000
	25,000
	
9.28	Trunk Highway
	43,415,000
	42,424,000
	
9.29 	The base appropriation from the trunk 
9.30 	highway fund in fiscal years 2012 and 2013 
9.31 	is $41,907,000 for each year.

9.32	(b) Buildings
		17,443,000
		17,047,000

9.33	Appropriations by Fund
	
9.34	General
	56,000
	56,000
	
9.35	Trunk Highway
	17,387,000
	16,991,000
	
10.1 	The base appropriation from the trunk 
10.2 	highway fund in fiscal years 2012 and 2013 
10.3 	is $17,784,000 for each year.
10.4 	If the appropriation for either year is 
10.5 	insufficient, the appropriation for the other 
10.6 	year is available for it.

10.7	Subd. 6.Transfers
 					
10.8 	(a) With the approval of the commissioner of 
10.9 	finance, the commissioner of transportation 
10.10 	may transfer unencumbered balances 
10.11 	among the appropriations from the trunk 
10.12 	highway fund and the state airports fund 
10.13 	made in this section. No transfer may be 
10.14 	made from the appropriation for state road 
10.15 	construction. No transfer may be made 
10.16 	from the appropriations for debt service to 
10.17 	any other appropriation. Transfers under 
10.18 	this paragraph may not be made between 
10.19 	funds. Transfers between programs must 
10.20 	be reported immediately to the chairs and 
10.21 	ranking minority members of the senate and 
10.22 	house of representatives committees with 
10.23 	jurisdiction over transportation finance.
10.24 	(b) The commissioner of finance shall 
10.25 	transfer from the flexible account in the 
10.26 	county state-aid highway fund $8,440,000 
10.27 	the first year and $1,550,000 the second 
10.28 	year to the municipal turnback account in 
10.29 	the municipal state-aid street fund; and the 
10.30 	remainder in each year to the county turnback 
10.31 	account in the county state-aid highway fund.

10.32
10.33	Subd. 7.Use of State Road Construction 
Appropriations
 					
10.34 	Any money appropriated to the commissioner 
10.35 	of transportation for state road construction 
11.1 	for any fiscal year before fiscal year 
11.2 	2010 is available to the commissioner 
11.3 	during the biennium to the extent that the 
11.4 	commissioner spends the money on the 
11.5 	state road construction project for which the 
11.6 	money was originally encumbered during the 
11.7 	fiscal year for which it was appropriated. The 
11.8 	commissioner of transportation shall report 
11.9 	to the commissioner of finance by August 
11.10 	1, 2009, and August 1, 2010, on a form 
11.11 	the commissioner of finance provides, on 
11.12 	expenditures made during the previous fiscal 
11.13 	year that are authorized by this subdivision.
11.14 	The commissioner must allocate money 
11.15 	appropriated in this section so as to maximize 
11.16 	the use of all available federal money from 
11.17 	the American Recovery and Reinvestment 
11.18 	Act of 2009, Public Law 111-5, and to the 
11.19 	extent possible, any other federal funding.

11.20	Subd. 8.Contingent Appropriation
 					
11.21 	The commissioner of transportation, with 
11.22 	the approval of the governor and the written 
11.23 	approval of at least five members of a 
11.24 	group consisting of: (1) the members of the 
11.25 	Legislative Advisory Commission under 
11.26 	Minnesota Statutes, section 3.30; and (2) the 
11.27 	ranking minority members of the house of 
11.28 	representatives and senate committees with 
11.29 	jurisdiction over transportation finance, may 
11.30 	transfer all or part of the unappropriated 
11.31 	balance in the trunk highway fund to an 
11.32 	appropriation (1) for trunk highway design, 
11.33 	construction, or inspection in order to 
11.34 	take advantage of an unanticipated receipt 
11.35 	of income to the trunk highway fund or 
12.1 	to take advantage of federal advanced 
12.2 	construction funding, (2) for trunk highway 
12.3 	maintenance in order to meet an emergency, 
12.4 	or (3) to pay tort or environmental claims. 
12.5 	Nothing in this subdivision authorizes the 
12.6 	commissioner to increase the use of federal 
12.7 	advanced construction funding beyond 
12.8 	amounts specifically authorized. Any 
12.9 	transfer as a result of the use of federal 
12.10 	advanced construction funding must include 
12.11 	an analysis of the effects on the long-term 
12.12 	trunk highway fund balance. The amount 
12.13 	transferred is appropriated for the purpose of 
12.14 	the account to which it is transferred.

12.15	Subd. 9.Appropriations Carryforward
 					
12.16 	Notwithstanding Minnesota Statutes, section 
12.17 	16A.28, or any other law to the contrary, the 
12.18 	commissioner may carry forward to fiscal 
12.19 	years 2010 and 2011 any unexpended and 
12.20 	unencumbered operating balances from trunk 
12.21 	highway appropriations for fiscal year 2009.

12.22	Subd. 10.Use of Trunk Highway Fund
 					
12.23 	No transfer or expenditure of trunk highway 
12.24 	funds may be made for the purpose of paying 
12.25 	personnel costs incurred on behalf of the 
12.26 	Governor's Office.

12.27
12.28	Subd. 11.Disadvantaged Business Enterprise 
Program
 					
12.29 	The commissioner shall, in utilizing these 
12.30 	appropriations, comply in all respects 
12.31 	with Minnesota Statutes, section 174.03, 
12.32 	subdivision 11.

12.33	Sec. 4. METROPOLITAN COUNCIL

12.34	Subdivision 1.Total Appropriation
 	$
	72,235,000
	$
	72,235,000
	
13.1 	The appropriations in this section are from 
13.2 	the general fund.
13.3 	The amounts that may be spent for each 
13.4 	purpose are specified in the following 
13.5 	subdivisions.

13.6	Subd. 2.Bus Transit
 		66,942,000
		66,942,000
	
13.7 	This appropriation is for bus system 
13.8 	operations.
13.9 	Of this appropriation, $129,000 for fiscal 
13.10 	year 2010 and $140,000 for fiscal year 2011 
13.11 	is for transit service for disabled veterans 
13.12 	under Minnesota Statutes, section 473.408, 
13.13 	subdivision 10.
13.14 	Of this amount, $80,700 in each year is for 
13.15 	the administrative expenses of the Minnesota 
13.16 	Council on Transportation Access, and for 
13.17 	other costs relating to the preparation of 
13.18 	required reports, including the costs of hiring 
13.19 	a consultant, if the council is created.

13.20	Subd. 3.Rail Operations
 		5,293,000
		5,293,000

13.21	Sec. 5. DEPARTMENT OF PUBLIC SAFETY

13.22	Subdivision 1.Total Appropriation
 	$
	152,478,000
	$
	152,578,000

13.23	Appropriations by Fund
	
13.24		2010
	2011
	
13.25	General
	7,959,000
	7,959,000
	
13.26	Special Revenue 
	49,038,000
	49,038,000
	
13.27	H.U.T.D.
	9,413,000
	9,713,000
	
13.28	Trunk Highway
	 86,068,000
	85,868,000
	
13.29 	The amounts that may be spent for each 
13.30 	purpose are specified in the following 
13.31 	subdivisions.

13.32	Subd.  2.Administration and Related Services 

13.33	(a) Office of Communications
		434,000
		434,000

14.1	Appropriations by Fund
	
14.2	General
	41,000
	41,000
	
14.3	Trunk Highway
	393,000
	393,000

14.4	(b) Public Safety Support
		8,168,000
		8,168,000

14.5	Appropriations by Fund
	
14.6	General
	3,296,000
	3,296,000
	
14.7	H.U.T.D.
	1,366,000
	1,366,000
	
14.8	Trunk Highway
	3,506,000
	3,506,000
	
14.9 	$380,000 the first year and $380,000 the 
14.10 	second year are appropriated from the general 
14.11 	fund for payment of public safety officer 
14.12 	survivor benefits under Minnesota Statutes, 
14.13 	section 299A.44. If the appropriation for 
14.14 	either year is insufficient, the appropriation 
14.15 	for the other year is available for it.
14.16 	$1,367,000 the first year and $1,367,000 
14.17 	the second year are appropriated from the 
14.18 	general fund to be deposited in the public 
14.19 	safety officer's benefit account. This money 
14.20 	is available for reimbursements under 
14.21 	Minnesota Statutes, section 299A.465.
14.22 	$508,000 the first year and $508,000 the 
14.23 	second year are appropriated from the general 
14.24 	fund  for soft body armor reimbursements 
14.25 	under Minnesota Statutes, section 299A.38.
14.26 	$792,000 the first year and $792,000 
14.27 	the second year are appropriated from the 
14.28 	general fund for transfer by the commissioner 
14.29 	of finance to the trunk highway fund on 
14.30 	December 31, 2009, and December 31, 2010, 
14.31 	respectively, in order to reimburse the trunk 
14.32 	highway fund for expenses not related to the 
14.33 	fund. These represent amounts appropriated 
14.34 	out of the trunk highway fund for general 
15.1 	fund purposes in the administration and 
15.2 	related services program.
15.3 	$610,000 the first year and $610,000 the 
15.4 	second year are appropriated from the 
15.5 	highway user tax distribution fund for 
15.6 	transfer by the commissioner of finance to 
15.7 	the trunk highway fund on December 31, 
15.8 	2009, and December 31, 2010, respectively, 
15.9 	in order to reimburse the trunk highway 
15.10 	fund for expenses not related to the fund. 
15.11 	These represent amounts appropriated out 
15.12 	of the trunk highway fund for highway 
15.13 	user tax distribution fund purposes in the 
15.14 	administration and related services program.
15.15 	$716,000 the first year and $716,000 the 
15.16 	second year are appropriated from the 
15.17 	highway user tax distribution fund for 
15.18 	transfer by the commissioner of finance to 
15.19 	the general fund on December 31, 2009, and 
15.20 	December 31, 2010, respectively, in order to 
15.21 	reimburse the general fund for expenses not 
15.22 	related to the fund. These represent amounts 
15.23 	appropriated out of the general fund for 
15.24 	operation of the criminal justice data network 
15.25 	related to driver and motor vehicle licensing.

15.26	(c) Technical Support Services
		3,835,000
		3,835,000

15.27	Appropriations by Fund
	
15.28	General
	1,472,000
	1,472,000
	
15.29	H.U.T.D. 
	19,000
	19,000
	
15.30	Trunk Highway
	2,344,000
	2,344,000

15.31	Subd.  3.State Patrol

15.32	(a) Patrolling Highways
		71,522,000
		71,522,000

15.33	Appropriations by Fund
	
15.34	General
	37,000
	37,000
	
16.1	H.U.T.D. 
	92,000
	92,000
	
16.2	Trunk Highway
	71,393,000
	71,393,000

16.3	(b) Commercial Vehicle Enforcement
		7,996,000
		7,796,000
	
16.4 	This appropriation is from the trunk highway 
16.5 	fund.
16.6 	$800,000 the first year and $600,000 the 
16.7 	second year are for the Office of Pupil 
16.8 	Transportation Safety.

16.9	(c) Capitol Security
		3,113,000
		3,113,000
	
16.10 	This appropriation is from the general fund.
16.11 	The commissioner may not: (1) spend 
16.12 	any money from the trunk highway fund 
16.13 	for capitol security; or (2) permanently 
16.14 	transfer any state trooper from the patrolling 
16.15 	highways activity to capitol security.
16.16 	The commissioner may not transfer any 
16.17 	money: (1) appropriated for Department of 
16.18 	Public Safety administration, the patrolling of 
16.19 	highways, commercial vehicle enforcement, 
16.20 	or driver and vehicle services to capitol 
16.21 	security; or (2) from capitol security.

16.22	Subd. 4.Driver and Vehicle Services

16.23	(a) Vehicle Services
		26,909,000
		27,209,000

16.24	Appropriations by Fund
	
16.25	Special Revenue
	18,973,000
	18,973,000
	
16.26	H.U.T.D. 
	7,936,000
	8,236,000
	
16.27 	The special revenue fund appropriation is 
16.28 	from the vehicle services operating account.

16.29	(b) Driver Services
		28,712,000
		28,712,000

16.30	Appropriations by Fund
	
16.31	Special Revenue
	28,711,000
	28,711,000
	
16.32	Trunk Highway
	1,000
	1,000
	
17.1 	The special revenue fund appropriation is 
17.2 	from the driver services operating account.

17.3	Subd. 5.Traffic Safety
 		435,000
		435,000
	
17.4 	The commissioner of public safety shall 
17.5 	spend 50 percent of the money available 
17.6 	to the state under Public Law 105-206, 
17.7 	section 164, and the remaining 50 percent 
17.8 	must be transferred to the commissioner 
17.9 	of transportation for hazard elimination 
17.10 	activities under United States Code, title 23, 
17.11 	section 152.

17.12	Subd. 6.Pipeline Safety
 		1,354,000
		1,354,000
	
17.13 	This appropriation is from the pipeline safety 
17.14 	account in the special revenue fund.

17.15	Subd. 7.Use of Trunk Highway Fund
 					
17.16 	No transfer or expenditure of trunk highway 
17.17 	funds may be made for the purpose of paying 
17.18 	personnel costs incurred on behalf of the 
17.19 	Governor's Office.

17.20
17.21	Sec. 6. GENERAL CONTINGENT 
ACCOUNTS
 	$
	375,000
	$
	375,000

17.22	Appropriations by Fund
	
17.23	Trunk Highway
	200,000
	200,000
	
17.24	H.U.T.D. 
	125,000
	125,000
	
17.25	Airports
	50,000
	50,000
	
17.26 	The appropriations in this section may 
17.27 	only be spent with the approval of the 
17.28 	governor and the written approval of at least 
17.29 	five members of a group consisting of (1) 
17.30 	the members of the Legislative Advisory 
17.31 	Commission under Minnesota Statutes, 
17.32 	section 3.30, and (2) the ranking minority 
17.33 	members of the house of representatives and 
18.1 	senate committees with jurisdiction over 
18.2 	transportation finance.
18.3 	If an appropriation in this section for either 
18.4 	year is insufficient, the appropriation for the 
18.5 	other year is available for it.

18.6	Sec. 7. TORT CLAIMS
 	$
	600,000
	$
	600,000
	
18.7 	This appropriation is to the commissioner of 
18.8 	finance.
18.9 	If the appropriation for either year is 
18.10 	insufficient, the appropriation for the other 
18.11 	year is available for it.

18.12 	Sec. 8. Laws 2007, chapter 143, article 1, section 3, subdivision 2, as amended by 
18.13 	Laws 2008, chapter 363, article 11, section 10, is amended to read:

18.14	Subd. 2. Multimodal Systems

18.15	(a) Aeronautics 

18.16	(1) Airport Development and Assistance 
		20,298,000 
		5,298,000 
	
18.17 	This appropriation is from the state airports 
18.18 	fund and must be spent according to 
18.19 	Minnesota Statutes, section 360.305, 
18.20 	subdivision 4. 
18.21 	$6,000,000 the first year is a onetime 
18.22 	appropriation and does not add to the 
18.23 	base appropriations. The base for this 
18.24 	appropriation for fiscal year 2010 is 
18.25 	$14,298,000.
18.26 	Of this appropriation $200,000 the first 
18.27 	year is to the Legislative Coordinating 
18.28 	Commission for the administrative expenses 
18.29 	of the Airport Funding Advisory Task Force 
18.30 	and for other costs relating to the preparation 
18.31 	of the task force report, including the costs of 
18.32 	hiring a consultant, if needed. Any remaining 
19.1 	amount of this appropriation shall revert to 
19.2 	the state airports fund. 
19.3 	Notwithstanding Minnesota Statutes, section 
19.4 	16A.28, subdivision 6, this appropriation is 
19.5 	available for five years after appropriation. 
19.6 	If the appropriation for either year is 
19.7 	insufficient, the appropriation for the other 
19.8 	year is available for it. 

19.9	(2) Aviation Support and Services 

19.10	Appropriations by Fund 
	
19.11	Airports 
	5,184,000 
	5,286,000 
	
19.12	Trunk Highway 
	852,000 
	866,000 
	
19.13 	$65,000 the first year and $65,000 the second 
19.14 	year from the state airports fund are for the 
19.15 	Civil Air Patrol. 

19.16	(b) Transit 

19.17	Appropriations by Fund 
	
19.18
19.19	General 
	18,813,000 
	18,816,000 
 21,316,000
	
19.20	Trunk Highway 
	740,000 
	761,000 
	
19.21 	Of the appropriation in fiscal year 2009, 
19.22 	$2,500,000 may be expended for financial 
19.23 	assistance under Minnesota Statutes, section 
19.24 	174.24, notwithstanding the payment 
19.25 	schedule under Minnesota Statutes, section 
19.26 	174.24, subdivision 5.
19.27 	Notwithstanding Minnesota Statutes, section 
19.28 	16A.28, subdivision 6, this appropriation is 
19.29 	available for fiscal years 2010 and 2011.

19.30	(c) Freight 

19.31	Appropriations by Fund 
	
19.32	General 
	357,000 
	367,000 
	
19.33	Trunk Highway 
	5,028,000 
	5,158,000 

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

20.1 	Sec. 9. Laws 2008, chapter 152, article 1, section 5, is amended to read:
20.2 	Sec. 5. APPROPRIATION; TRANSPORTATION EMERGENCY RELIEF.
 20.3 	$55,000,000 in fiscal year 2008 and $77,000,000 $33,000,000 in fiscal year 2009 
20.4 	are appropriated to the commissioner of transportation from the trunk highway fund for 
20.5 	the purposes specified in the federal grants and aids related to the I-35W bridge collapse 
20.6 	on marked Interstate Highway I-35W in Minneapolis. The appropriation in fiscal year 
20.7 	2009 is available for other trunk highway construction projects. This appropriation is in 
20.8 	addition to appropriations under Laws 2007, chapter 143, article 1, section 3, and Laws 
20.9 	2007, First Special Session chapter 2, article 2, section 2.

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

20.11 	Sec. 10. METROPOLITAN LIVABLE COMMUNITIES FUND; TRANSFERS.
 20.12 	Notwithstanding Minnesota Statutes, sections 473.25 to 473.255, or any other law, 
20.13 	the Metropolitan Council may transfer to its transit operating budget in 2009, 2010, and 
20.14 	2011 money that is not committed to grant or loan awards made by the council as follows:
20.15 	(1) up to 50 percent of the revenues and amounts credited, transferred, or distributed 
20.16 	to the tax base revitalization account in 2009, 2010, and 2011, pursuant to Minnesota 
20.17 	Statutes, section 473.252;
20.18 	(2) up to 50 percent of the revenues and amounts credited, transferred, or distributed 
20.19 	to the metropolitan livable communities demonstration account in 2009, 2010, and 2011 
20.20 	pursuant to Minnesota Statutes, section 473.253; and
20.21 	(3) balances in the metropolitan livable communities fund accounts in 2009, 2010, 
20.22 	and 2011.
20.23 	The council shall use the amounts transferred to cover operating deficits for the 
20.24 	transit, paratransit, and light rail and commuter rail services provided or assisted by the 
20.25 	council under Minnesota Statutes, sections 473.371 to 473.449. If the council transfers 
20.26 	funds pursuant to this section, the council shall amend the annual distribution plan 
20.27 	described in Minnesota Statutes, section 473.25, paragraph (d), and include information 
20.28 	about the transfer in the annual report required under Minnesota Statutes, section 473.25, 
20.29 	paragraph (e).

20.30 	Sec. 11. RIGHT-OF-WAY ACQUISITION LOAN FUND; TRANSFERS.
 20.31 	Notwithstanding Minnesota Statutes, section 473.167, or any other law, the 
20.32 	Metropolitan Council may transfer to its transit operating budget in 2009, 2010, and 
20.33 	2011 up to 75 percent of the amounts levied and collected in 2009, 2010, and 2011 
20.34 	under Minnesota Statutes, section 473.167, subdivision 3. The council shall use the 
21.1 	amounts transferred to cover operating deficits for the transit, paratransit, and light rail 
21.2 	and commuter rail services provided or assisted by the council under Minnesota Statutes, 
21.3 	sections 473.371 to 473.449.

21.4 	ARTICLE 2
21.5 	TRUNK HIGHWAY BONDS

21.6 	Section 1. HIGHWAY APPROPRIATION AND BOND SALE.
 21.7 		Subdivision 1.Appropriation. $40,000,000 is appropriated from the bond 
21.8 	proceeds account in the trunk highway fund to the commissioner of transportation for 
21.9 	(1) construction of interchanges involving a trunk highway, where the interchange will 
21.10 	promote economic development, increase employment, relieve growing traffic congestion, 
21.11 	and promote traffic safety; and (2) local match for any federal grants made available to the 
21.12 	state. The amount under this paragraph must be allocated 50 percent to the department's 
21.13 	metropolitan district, and 50 percent to districts in greater Minnesota. At least $20,000,000 
21.14 	of this appropriation must be expended as provided under clause (1). This amount is in 
21.15 	addition to existing appropriations for this purpose.
21.16 		Subd. 2.Bond sale. To provide the money appropriated in subdivision 1 from the 
21.17 	bond proceeds account in the trunk highway fund, the commissioner of finance shall sell 
21.18 	and issue bonds of the state in an amount up to $40,000,000 in the manner, upon the terms, 
21.19 	and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and 
21.20 	by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts 
21.21 	requested by the commissioner of transportation. The proceeds of the bonds, except 
21.22 	accrued interest and any premium received from the sale of the bonds, must be deposited 
21.23 	in the bond proceeds account in the trunk highway fund.

21.24 	Sec. 2. EFFECTIVE DATE.
 21.25 	This article is effective the day following final enactment.

21.26 	ARTICLE 3
21.27 	TRANSPORTATION FINANCE AND POLICY

21.28 	Section 1. Minnesota Statutes 2008, section 16A.152, subdivision 2, is amended to 
21.29 	read:
21.30 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general 
21.31 	fund revenues and expenditures, the commissioner of finance determines that there will be 
21.32 	a positive unrestricted budgetary general fund balance at the close of the biennium, the 
22.1 	commissioner of finance must allocate money to the following accounts and purposes in 
22.2 	priority order:
22.3 	(1) the cash flow account established in subdivision 1 until that account reaches 
22.4 	$350,000,000;
22.5 	(2) the budget reserve account established in subdivision 1a until that account 
22.6 	reaches $653,000,000;
22.7 	(3) the amount necessary to increase the aid payment schedule for school district 
22.8 	aids and credits payments in section 127A.45 to not more than 90 percent rounded to the 
22.9 	nearest tenth of a percent without exceeding the amount available and with any remaining 
22.10 	funds deposited in the budget reserve; and
22.11 	(4) the amount necessary to restore all or a portion of the net aid reductions under 
22.12 	section 127A.441 and to reduce the property tax revenue recognition shift under section 
22.13 	123B.75, subdivision 5, paragraph (b), and Laws 2003, First Special Session chapter 9, 
22.14 	article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section 
22.15 	20, by the same amount; and
22.16 	(5) to the state airports fund, the amount necessary to restore the amount transferred 
22.17 	from the state airports fund under Laws 2008, chapter 363, article 11, section 3, 
22.18 	subdivision 5.
22.19 	(b) The amounts necessary to meet the requirements of this section are appropriated 
22.20 	from the general fund within two weeks after the forecast is released or, in the case of 
22.21 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
22.22 	schedules otherwise established in statute.
22.23 	(c) To the extent that a positive unrestricted budgetary general fund balance is 
22.24 	projected, appropriations under this section must be made before section 16A.1522 takes 
22.25 	effect.
22.26 	(d) The commissioner of finance shall certify the total dollar amount of the 
22.27 	reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. The 
22.28 	commissioner of education shall increase the aid payment percentage and reduce the 
22.29 	property tax shift percentage by these amounts and apply those reductions to the current 
22.30 	fiscal year and thereafter.

22.31 	Sec. 2. [160.165] MITIGATION OF TRANSPORTATION CONSTRUCTION 
22.32 	IMPACTS ON BUSINESS.
22.33 		Subdivision 1.Definitions. For the purposes of this section, the following terms 
22.34 	have the meanings given:
23.1 	(1) "project" means construction work to maintain, construct, reconstruct, or 
23.2 	improve a street or highway;
23.3 	(2) "substantial business impacts" means impairment of road access, parking, or 
23.4 	visibility for one or more business establishments as a result of a project, for a minimum 
23.5 	period of one month; and
23.6 	(3) "transportation authority" means the commissioner, as to trunk highways; the 
23.7 	county board, as to county state-aid highways and county highways; the town board, as to 
23.8 	town roads; and statutory or home rule charter cities, as to city streets.
23.9 		Subd. 2.Business liaison. (a) Before beginning construction work on a project, 
23.10 	a transportation authority shall identify whether the project is anticipated to include 
23.11 	substantial business impacts. For such projects, the transportation authority shall designate 
23.12 	an individual to serve as business liaison between the transportation authority and affected 
23.13 	businesses.
23.14 	(b) The business liaison shall consult with affected businesses before and 
23.15 	during construction to investigate means of mitigating project impacts to businesses. 
23.16 	The mitigation considered must include signage. The business liaison shall provide 
23.17 	information to the identified businesses before and during construction, concerning project 
23.18 	duration and timetables, lane and road closures, detours, access impacts, customer parking 
23.19 	impacts, visibility, noise, dust, vibration, and public participation opportunities.

23.20 	Sec. 3. Minnesota Statutes 2008, section 161.20, subdivision 3, is amended to read:
23.21 		Subd. 3.Trunk highway fund appropriations. The commissioner may expend 
23.22 	trunk highway funds only for trunk highway purposes. Payment of expenses related 
23.23 	to Bureau of Criminal Apprehension laboratory, Explore Minnesota Tourism kiosks, 
23.24 	Minnesota Safety Council, tort claims, driver education programs, Emergency Medical 
23.25 	Services Board, and Mississippi River Parkway Commission, and personnel costs incurred 
23.26 	on behalf of the Governor's Office do not further a highway purpose and do not aid in the 
23.27 	construction, improvement, or maintenance of the highway system.

23.28 	Sec. 4. Minnesota Statutes 2008, section 162.12, subdivision 2, is amended to read:
23.29 		Subd. 2.Administrative costs. A sum of 1-1/2 two percent shall be deducted from 
23.30 	the total available in the municipal state-aid street fund, set aside in a separate account, 
23.31 	and used for administration costs incurred by the state Transportation Department in 
23.32 	carrying out the provisions relating to the municipal state-aid street system.

23.33 	Sec. 5. [165.15] STILLWATER LIFT BRIDGE ENDOWMENT ACCOUNT.
24.1 		Subdivision 1.Account established. The Stillwater lift bridge endowment account 
24.2 	is established in the state treasury. The account may consist of appropriations made by the 
24.3 	state of Minnesota or Wisconsin and may include federal funds. The account may also 
24.4 	receive private contributions, gifts, or grants under section 16A.013. Any interest or profit 
24.5 	accruing from investment of these sums is credited to the account.
24.6 		Subd. 2.Use of funds. (a) Income derived from the investment of principal in the 
24.7 	account may be used by the commissioner of transportation for operations and routine 
24.8 	maintenance of the Stillwater lift bridge. No money from this account may be used for 
24.9 	any purposes except those described in this section, and no money from this account 
24.10 	may be transferred to any other account in the state treasury without specific legislative 
24.11 	authorization. Any money transferred from the trunk highway fund may only be used for 
24.12 	trunk highway purposes. For the purposes of this section:
24.13 	(1) "Income" is the amount of interest on debt securities and dividends on equity 
24.14 	securities. Any gains or losses from the sale of securities must be added to the principal 
24.15 	of the account.
24.16 	(2) "Routine maintenance" means activities that are predictable and repetitive, but 
24.17 	not activities that would constitute major repairs or rehabilitation.
24.18 	(b) Investment management fees incurred by the State Board of Investment are 
24.19 	eligible expenses for reimbursement from the account.
24.20 	(c) The commissioner of transportation has authority to approve or deny expenditures 
24.21 	of funds in the account.
24.22 		Subd. 3.Appropriation. Income derived from the investment of principal in the 
24.23 	account is appropriated annually to the commissioner of transportation for the purposes 
24.24 	described in this section.
24.25 		Subd. 4.Financial compliance. The commissioner of transportation shall ensure 
24.26 	that the account complies with the regulations in OMB circulars A87, Cost Principles for 
24.27 	State, Local and Indian Tribal Governments, and A122, Cost Principles for Non-Profit 
24.28 	Organizations, of the United States Office of Management and Budget (OMB).
24.29 		Subd. 5.Investment. The State Board of Investment, in consultation with the 
24.30 	commissioner of transportation, shall invest money in the account under section 11A.24.
24.31 		Subd. 6.Demolition. If the commissioner determines, in consultation with the 
24.32 	State Historic Preservation Office, that it is necessary to demolish the Stillwater lift 
24.33 	bridge, the principal in the account may be spent to pay for demolition of the bridge, and 
24.34 	is appropriated to the commissioner of transportation only for that purpose, except that 
24.35 	only funds originally contributed by the state or federal government can be used to pay 
24.36 	for demolition. Any money remaining in the account after demolition must be used to 
25.1 	pay for the preservation of other historic bridges in consultation with the State Historic 
25.2 	Preservation Office.
25.3 		Subd. 7.Audits. The account is subject to audit by the legislative auditor.
25.4 		Subd. 8.Reports required. The commissioner of transportation shall report 
25.5 	annually to the chair and ranking minority member of each legislative committee with 
25.6 	jurisdiction over transportation on the endowment account. At a minimum, the report 
25.7 	must include detailed revenue and expenditure information.

25.8 	Sec. 6. Minnesota Statutes 2008, section 168.017, subdivision 5, is amended to read:
25.9 		Subd. 5.Registration period extension for leased vehicle. (a) Notwithstanding 
25.10 	subdivisions 3 and 4, a person leasing for at least one year a vehicle registered under 
25.11 	this section may obtain an extension of the motor vehicle's registration period for the 
25.12 	unexpired portion of the lease period, for a period not to exceed 11 months beyond the 
25.13 	expiration of the registration period.
25.14 	(b) In order to obtain an extension under this subdivision a lessee must
25.15 	(1) apply to the registrar on a form the registrar prescribes;
25.16 	(2) submit to the registrar a copy of the lease;
25.17 	(3) pay an administrative fee of $5; and
25.18 	(4) pay a tax of 1/12 of the tax for the registration period being extended for each 
25.19 	month of the extension.
25.20 	(c) On an applicant's compliance with paragraph (b) the registrar shall issue the 
25.21 	applicant a license plate tab or sticker designating the new month of expiration of the 
25.22 	registration. The extended registration expires on the tenth day of the month following 
25.23 	the month designated on the tab or sticker.
25.24 	(d) All fees collected under paragraph (b), clause (3), must be deposited in the vehicle 
25.25 	services operating account under section 299A.705, subdivision 1. Taxes collected under 
25.26 	paragraph (b), clause (4), must be deposited in the highway user tax distribution fund.

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

25.29 	Sec. 7. Minnesota Statutes 2008, section 168.021, subdivision 4, is amended to read:
25.30 		Subd. 4.Fees; disposition. All fees collected from the sale of disability plates 
25.31 	under this section must be deposited in the state treasury to the credit of the highway 
25.32 	user tax distribution fund vehicle services operating account under section 299A.705, 
25.33 	subdivision 1.

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

26.3 	Sec. 8. Minnesota Statutes 2008, section 168.10, subdivision 1i, is amended to read:
26.4 		Subd. 1i.Collector plate transfer. Notwithstanding section 168.12, subdivision 1, 
26.5 	on payment of a transfer fee of $5, plates issued under this section may be transferred to 
26.6 	another vehicle owned or jointly owned by the person to whom the special plates were 
26.7 	issued or the plate may be assigned to another owner. In addition to the transfer fee a new 
26.8 	owner must pay the $25 tax and any fee required by section 168.12, subdivision 2a. The 
26.9 	$5 fee must be paid into the state treasury and credited to the highway user tax distribution 
26.10 	fund vehicle services operating account under section 299A.705, subdivision 1. License 
26.11 	plates issued under this section may not be transferred to a vehicle not eligible for the 
26.12 	collector's vehicle license plates.

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

26.15 	Sec. 9. Minnesota Statutes 2008, section 168.29, is amended to read:
26.16 	168.29 REPLACEMENT PLATES.
26.17 	(a) In the event of the defacement, loss or destruction of any number plates or 
26.18 	validation stickers, the registrar, upon receiving and filing a sworn statement of the vehicle 
26.19 	owner, setting forth the circumstances of the defacement, loss, destruction or theft of 
26.20 	the number plates or validation stickers, together with any defaced plates or stickers 
26.21 	and the payment of a fee calculated to cover the cost of replacement, shall issue a new 
26.22 	set of plates or stickers.
26.23 	(b) The registrar shall then note on the registrar's records the issue of new number 
26.24 	plates and shall proceed in such manner as the registrar may deem advisable to cancel and 
26.25 	call in the original plates so as to insure against their use on another motor vehicle.
26.26 	(c) Duplicate registration certificates plainly marked as duplicates may be issued 
26.27 	in like cases upon the payment of a $1 fee. Fees collected under this section must be 
26.28 	paid into the state treasury and credited to the highway user tax distribution fund vehicle 
26.29 	services operating account under section 299A.705, subdivision 1.

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

26.32 	Sec. 10. Minnesota Statutes 2008, section 168.62, subdivision 3, is amended to read:
27.1 		Subd. 3.Special plates or certificate; fee; proceeds to highway user fund. At the 
27.2 	same time that an owner or operator of intercity buses registers them in Minnesota and 
27.3 	obtains number plates therefor, the owner or operator shall apply for special identification 
27.4 	plates or certificates for the remainder of that fleet of intercity buses. The registrar of 
27.5 	motor vehicles shall design an appropriate plate or identification certificate for this 
27.6 	purpose which shall be issued upon the payment of a fee of $10 covering each intercity 
27.7 	bus so identified. The proceeds of such fees shall be deposited to the credit of the highway 
27.8 	user tax distribution fund vehicle services operating account under section 299A.705, 
27.9 	subdivision 1. No intercity bus shall at any time be operated in the state of Minnesota 
27.10 	without either Minnesota number plates or special identification plates or certificates 
27.11 	issued as herein provided.

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

27.14 	Sec. 11. [171.163] COMMERCIAL DRIVER'S LICENSE RECORD KEEPING.
27.15 	An agency, court, or public official in Minnesota shall not mask, defer imposition of 
27.16 	judgment, or allow an individual to enter into a diversion program that would prevent a 
27.17 	conviction for a violation of a state or local traffic control law, except a parking violation, 
27.18 	from appearing on the driving record of a holder of a commercial driver's license, when 
27.19 	the violation is committed in any type of motor vehicle, or on the driving record of an 
27.20 	individual who committed the violation in a commercial motor vehicle.

27.21 	Sec. 12. Minnesota Statutes 2008, section 174.24, subdivision 1a, is amended to read:
27.22 		Subd. 1a.Transit service needs implementation plan. The commissioner shall 
27.23 	develop a transit service needs implementation plan that contains a goal of meeting at 
27.24 	least 80 percent of unmet transit service needs in greater Minnesota by July 1, 2015, and 
27.25 	meeting at least 90 percent of unmet transit service needs in greater Minnesota by July 1, 
27.26 	2025. The plan must include, but is not limited to, the following: an analysis of ridership 
27.27 	and transit service needs throughout greater Minnesota; a calculation of unmet needs; an 
27.28 	assessment of the level and type of service required to meet unmet needs; an analysis of 
27.29 	costs and revenue options; and, a plan to reduce unmet transit service needs as specified 
27.30 	in this subdivision. The plan must specifically address special transportation service 
27.31 	ridership and needs. The plan must also provide that recipients of operating assistance 
27.32 	under this section provide fixed route public transit service without charge for disabled 
27.33 	veterans in accordance with subdivision 7. The commissioner may amend the plan as 
28.1 	necessary, and may use all or part of the 2001 greater Minnesota public transportation plan 
28.2 	created by the Minnesota Department of Transportation.

28.3 	Sec. 13. Minnesota Statutes 2008, section 174.24, subdivision 5, is amended to read:
28.4 		Subd. 5.Method of payment, operating assistance. Payments for operating 
28.5 	assistance under this section must be made in the following manner:
28.6 	(a) For payments made from the general fund:
28.7 	(1) 50 percent of the total contract amount in or before the first month of operation;
28.8 	(2) 40 percent of the total contract amount in or before the seventh month of 
28.9 	operation;
28.10 	(3) 9 percent of the total contract amount in or before the 12th month of operation; 
28.11 	and
28.12 	(4) 1 percent of the total contract amount after the final audit.
28.13 	(b) For payments made from the greater Minnesota transit account:
28.14 	(1) 50 percent of the total contract amount in or before the seventh month of 
28.15 	operation; and
28.16 	(2) 50 percent of the total contract amount in or before the 11th month of operation.

28.17 	Sec. 14. Minnesota Statutes 2008, section 174.24, is amended by adding a subdivision 
28.18 	to read:
28.19 		Subd. 7.Transit service for disabled veterans. On and after July 1, 2009, 
28.20 	an eligible recipient of operating assistance under this section, who contracts or has 
28.21 	contracted to provide fixed route public transit, shall provide fixed route public transit 
28.22 	service free of charge for veterans, as defined in section 197.447, certified as disabled. For 
28.23 	purposes of this section, "certified as disabled" means certified in writing by the United 
28.24 	States Department of Veterans Affairs or the state commissioner of veterans affairs as 
28.25 	having a permanent service-connected disability.

28.26 	Sec. 15. Minnesota Statutes 2008, section 174.50, is amended by adding a subdivision 
28.27 	to read:
28.28 		Subd. 6c.Fracture-critical bridges. (a) The commissioner may make a grant to 
28.29 	any political subdivision for replacement or rehabilitation of a fracture-critical bridge. To 
28.30 	be eligible for a grant under this subdivision, the project must produce a bridge structure:
28.31 	(1) that is no longer classified as fracture critical, by having alternate load paths; and
28.32 	(2) whose failure of a main component will not result in the collapse of the bridge.
29.1 	(b) A grant under this subdivision is subject to the procedures and criteria established 
29.2 	under subdivisions 5 and 6.

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

29.4 	Sec. 16. [174.632] PASSENGER RAIL; COMMISSIONER'S DUTIES.
29.5 	(a) The planning, design, development, construction, operation, and maintenance of 
29.6 	passenger rail track, facilities, and services are governmental functions, serve a public 
29.7 	purpose, and are a matter of public necessity.
29.8 	(b) The commissioner is responsible for all aspects of planning, designing, 
29.9 	developing, constructing, equipping, operating, and maintaining passenger rail, including 
29.10 	system planning, alternatives analysis, environmental studies, preliminary engineering, 
29.11 	final design, construction, negotiating with railroads, and developing financial and 
29.12 	operating plans.
29.13 	(c) The commissioner may enter into a memorandum of understanding or agreement 
29.14 	with a public or private entity, including a regional railroad authority, a joint powers board, 
29.15 	and a railroad, to carry out these activities.

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

29.17 	Sec. 17. [174.634] PASSENGER RAIL; FUNDING.
29.18 	(a) The commissioner may apply for funding from federal, state, regional, local, and 
29.19 	private sources to carry out the commissioner's duties in section 174.632.
29.20 	(b) Section 174.88, subdivision 2, does not apply to the commissioner's performance 
29.21 	of duties and exercise of powers under sections 174.632 to 174.636.

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

29.23 	Sec. 18. [174.636] PASSENGER RAIL; EXERCISE OF POWER.
29.24 	(a) The commissioner has all powers necessary to carry out the duties specified in 
29.25 	section 174.632. In the exercise of those powers, the commissioner may:
29.26 	(1) acquire by purchase, gift, or by eminent domain proceedings as provided by law, 
29.27 	all land and property necessary to preserve future passenger rail corridors or to construct, 
29.28 	maintain, and improve passenger rail corridors;
29.29 	(2) let all necessary contracts as provided by law; and
29.30 	(3) make agreements with and cooperate with any governmental authority or private 
29.31 	entity to carry out statutory duties related to passenger rail.
30.1 	(b) The commissioner shall consult with metropolitan planning organizations and 
30.2 	regional rail authorities in areas where passenger rail corridors are under consideration 
30.3 	to ensure that passenger rail services are integrated with existing rail and transit services 
30.4 	and other transportation facilities to provide as nearly as possible connected, efficient, 
30.5 	and integrated services.

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

30.7 	Sec. 19. Minnesota Statutes 2008, section 297B.09, subdivision 1, is amended to read:
30.8 		Subdivision 1.Deposit of revenues. (a) Money collected and received under this 
30.9 	chapter must be deposited as provided in this subdivision.
30.10 	(b) From July 1, 2007, through June 30, 2008, 38.25 percent of the money collected 
30.11 	and received must be deposited in the highway user tax distribution fund, 24 percent must 
30.12 	be deposited in the metropolitan area transit account under section 16A.88, and 1.5 percent 
30.13 	must be deposited in the greater Minnesota transit account under section 16A.88. The 
30.14 	remaining money must be deposited in the general fund. 
30.15 	(c) From July 1, 2008, through June 30, 2009, 44.25 percent of the money collected 
30.16 	and received must be deposited in the highway user tax distribution fund, 27.75 percent 
30.17 	must be deposited in the metropolitan area transit account under section 16A.88, 1.75 
30.18 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
30.19 	and the remaining money must be deposited in the general fund.
30.20 	(d) From July 1, 2009, through June 30, 2010, 50.25 percent of the money collected 
30.21 	and received must be deposited in the highway user tax distribution fund, 30 percent must 
30.22 	be deposited in the metropolitan area transit account under section 16A.88, 3.5 percent 
30.23 	must be deposited in the greater Minnesota transit account under section 16A.88, and the 
30.24 	remaining money must be deposited in the general fund.
30.25 	(d) From July 1, 2009, through June 30, 2010, 47.5 percent of the money collected 
30.26 	and received must be deposited in the highway user tax distribution fund, 30 percent 
30.27 	must be deposited in the metropolitan area transit account under section 16A.88, 3.5 
30.28 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
30.29 	and 16.25 percent must be deposited in the general fund. The remaining amount must 
30.30 	be deposited as follows:
30.31 	(1) 1.5 percent in the metropolitan area transit account, except that any amount in 
30.32 	excess of $6,000,000 must be deposited in the highway user tax distribution fund; and
30.33 	(2) 1.25 percent in the greater Minnesota transit account, except that any amount in 
30.34 	excess of $5,000,000 must be deposited in the highway user tax distribution fund.
31.1 	(e) From July 1, 2010, through June 30, 2011, 56.25 percent of the money collected 
31.2 	and received must be deposited in the highway user tax distribution fund, 33.75 percent 
31.3 	must be deposited in the metropolitan area transit account under section 16A.88, 3.75 
31.4 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
31.5 	and the remaining money must be deposited in the general fund.
31.6 	(e) From July 1, 2010, through June 30, 2011, 54.5 percent of the money collected 
31.7 	and received must be deposited in the highway user tax distribution fund, 33.75 percent 
31.8 	must be deposited in the metropolitan area transit account under section 16A.88, 3.75 
31.9 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
31.10 	and 6.25 percent must be deposited in the general fund. The remaining amount must 
31.11 	be deposited as follows:
31.12 	(1) 1.5 percent in the metropolitan area transit account, except that any amount in 
31.13 	excess of $6,750,000 must be deposited in the highway user tax distribution fund; and
31.14 	(2) 0.25 percent in the greater Minnesota transit account, except that any amount in 
31.15 	excess of $1,250,000 must be deposited in the highway user tax distribution fund.
31.16 	(f) On and after July 1, 2011, 60 percent of the money collected and received must 
31.17 	be deposited in the highway user tax distribution fund, 36 percent must be deposited in 
31.18 	the metropolitan area transit account under section 16A.88, and four percent must be 
31.19 	deposited in the greater Minnesota transit account under section 16A.88.
31.20 	(g) It is the intent of the legislature that the allocations under paragraph (f) remain 
31.21 	unchanged for fiscal year 2012 and all subsequent fiscal years.

31.22 	Sec. 20. Minnesota Statutes 2008, section 473.408, is amended by adding a subdivision 
31.23 	to read:
31.24 		Subd. 10.Transit service for disabled veterans. (a) On and after the effective 
31.25 	date of this section, the council shall provide regular route transit, as defined in section 
31.26 	473.385, subdivision 1, free of charge for veterans, as defined in section 197.447, certified 
31.27 	as disabled. For purposes of this section, "certified as disabled" means certified in writing 
31.28 	by the United States Department of Veterans Affairs or the state commissioner of veterans 
31.29 	affairs as having a permanent service-connected disability.
31.30 	(b) The requirements under this subdivision apply to operators of regular route 
31.31 	transit (1) receiving financial assistance under section 473.388, or (2) operating under 
31.32 	section 473.405, subdivision 12.

31.33 	Sec. 21. Laws 2008, chapter 152, article 1, section 3, subdivision 2, is amended to read:

31.34	Subd. 2.Multimodal Systems

32.1	(a) Transit
		0
		1,700,000
	
32.2 	This appropriation is from the general fund. 
32.3 	This is a onetime appropriation.

32.4	(b) Rail
		0
		250,000
	
32.5 	This appropriation is from the general 
32.6 	fund for a grant to the Northstar Corridor 
32.7 	Development Authority to fund advanced 
32.8 	preliminary engineering, updated 
32.9 	environmental documentation, property 
32.10 	appraisals, park-and-ride lot construction, 
32.11 	and negotiations with the railroad to extend 
32.12 	commuter rail service on the Burlington 
32.13 	Northern Santa Fe rail line between Big Lake 
32.14 	and Rice. This is a onetime appropriation 
32.15 	and is available until spent.

32.16	(c) Port Development Assistance
		0
		500,000
	
32.17 	This appropriation is from the general fund 
32.18 	for grants under Minnesota Statutes, chapter 
32.19 	457A. Any improvements made with the 
32.20 	proceeds of these grants must be publicly 
32.21 	owned. This is a onetime appropriation.

32.22 	Sec. 22. LAND USE AND PLANNING RESOURCES REPORT.
 32.23 	(a) By January 15, 2011, the Metropolitan Council shall submit a report to the chairs 
32.24 	and ranking minority members of the house of representatives and senate committees with 
32.25 	jurisdiction over transportation policy and finance. The report must identify and assess 
32.26 	the effectiveness of local level and regional level land use and transportation planning 
32.27 	strategies and processes for:
32.28 	(1) reducing air pollution;
32.29 	(2) mitigating congestion; and
32.30 	(3) reducing costs for operation, maintenance, or improvement of infrastructure.
32.31 	(b) The report must emphasize approaches that reduce or manage travel demand 
32.32 	through land use and access to transportation options.
33.1 	(c) The Metropolitan Council shall (1) identify and adapt existing information and 
33.2 	resources that are found to be applicable to Minnesota, taking into account travel and 
33.3 	demographic trends specific to the Twin Cities metropolitan area; and (2) collaborate 
33.4 	with local units of government and other stakeholders interested in development and 
33.5 	refinement of the resources.
33.6 	(d) The Metropolitan Council shall submit progress reports on development and 
33.7 	application of the land use and planning resources report to the chairs and ranking 
33.8 	minority members of the house of representatives and senate committees with jurisdiction 
33.9 	over transportation policy and finance by October 15, 2009; April 15, 2010; and October 
33.10 	15, 2010.
33.11 	(e) The Metropolitan Council may enter into a contract for up to $375,000 with the 
33.12 	Board of Regents of the University of Minnesota for the Center for Transportation Studies 
33.13 	to assist in creation of the report required under this section.

33.14 	Sec. 23. PASSENGER RAIL REPORT.
 33.15 	By February 1, 2010, the commissioner of transportation shall report to the chairs 
33.16 	and ranking minority members of the legislative committees with jurisdiction over 
33.17 	transportation policy and finance concerning the status of passenger rail in this state. 
33.18 	The report must be made electronically and made available in print only upon request. 
33.19 	The report must include a summary of the current status of passenger rail projects and 
33.20 	recommend:
33.21 	(1) a public participation process for intercity passenger rail planning;
33.22 	(2) appropriate participation and levels of review by local units of government;
33.23 	(3) future sources of funding for capital costs and operations;
33.24 	(4) definitions to distinguish passenger rail from commuter rail;
33.25 	(5) legislative changes to facilitate and improve the passenger rail planning processes 
33.26 	and operation; and
33.27 	(6) state operating subsidy mechanisms designed to create local tax equity between 
33.28 	communities served by passenger rail and communities served by commuter rail.

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

33.30 	Sec. 24. BUS PURCHASES.
 33.31 	The Metropolitan Council, in preparing bid specifications for bus purchases, shall 
33.32 	ensure that the specifications conform, to the greatest extent practicable, with products 
33.33 	that are manufactured in this state.

34.1 	Sec. 25. ST. CLOUD BRIDGE SITE.
 34.2 	The commissioner of transportation shall ensure that the economic impact on 
34.3 	existing area communities is evaluated and considered in analyzing potential alternative 
34.4 	sites and selecting potential and preferred sites for a Mississippi River crossing near St. 
34.5 	Cloud metropolitan area.

34.6 	Sec. 26. CONVEYANCE OF LAND AND BUILDINGS.
 34.7 	Notwithstanding Minnesota Statutes, section 16A.695, subdivision 3, or any other 
34.8 	law to the contrary, the Metropolitan Council shall convey the Apple Valley Transit 
34.9 	Station and the real property on which it is situated, located in Dakota County, to the 
34.10 	Minnesota Valley Transit Authority for nominal consideration, in order to carry out the 
34.11 	governmental program and public purpose for which the Apple Valley Transit Station was 
34.12 	constructed. Any subsequent conveyance of this property by the Minnesota Valley Transit 
34.13 	Authority is subject to Minnesota Statutes, section 16A.695, subdivision 3.

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

34.15 	Sec. 27. DISCOUNT TRANSIT PASSES PILOT PROGRAM.
 34.16 	(a) The Metropolitan Council shall establish a pilot program and policies to sell 
34.17 	transit fare media at a 50 percent discount to eligible charitable organizations for use by 
34.18 	homeless individuals. For the purposes of this section, "eligible charitable organization" 
34.19 	means a charitable organization described in section 501(c)(3) of the Internal Revenue 
34.20 	Code that provides services for homeless individuals, and "homeless individuals" means 
34.21 	homeless individuals or persons as defined in Minnesota Statutes, section 116L.361, 
34.22 	subdivision 5. The pilot program must include: (1) an organization located in Minneapolis 
34.23 	that provides a homeless shelter, a homeless street outreach program, and sober housing to 
34.24 	American Indian women recovering from chemical dependency; and (2) an organization 
34.25 	located in Minneapolis that provides transitional apartments for homeless families as well 
34.26 	as walk-in services for single adults, including meals and a food shelf. The pilot program 
34.27 	shall terminate March 15, 2011.
34.28 	(b) By January 15, 2011, the chair of the Metropolitan Council shall prepare and 
34.29 	submit a report to the chairs and ranking minority members of the senate and house of 
34.30 	representatives committees having jurisdiction over transportation. The chair shall prepare 
34.31 	and submit the report with existing agency staff and resources. The report must be made 
34.32 	electronically and available in print only upon request. The report on the pilot program 
34.33 	must include a list of sales made under this subdivision, including organization name and 
34.34 	the volume of fare media purchased, and costs of providing the discounted service and 
35.1 	revenue impacts in the council's transit system. The report must be prepared in consultation 
35.2 	with representatives from the charitable organizations participating in the pilot program.
35.3 	(c) Paragraphs (a) and (b) apply in the counties of Anoka, Carver, Dakota, Hennepin, 
35.4 	Ramsey, Scott, and Washington.

35.5 	EFFECTIVE DATE. This section is effective September 1, 2009.

35.6 	Sec. 28. DESIGN-BUILD PROJECT SELECTION COUNCIL.
 35.7 		Subdivision 1.Establishment of council. A Design-Build Project Selection 
35.8 	Council is established to select, evaluate, and support county and municipal transportation 
35.9 	projects on the state-aid system that are conducive to use of the design-build method of 
35.10 	contracting and to report to the legislature.
35.11 		Subd. 2.Duties of council. In order to accomplish these purposes, the council shall:
35.12 	(1) review applications for participation received by the commissioner from counties 
35.13 	and cities;
35.14 	(2) select for participation in the pilot program a maximum of 15 projects on the 
35.15 	state-aid system, no more than ten of which may be on the county state-aid highway 
35.16 	system, and no more than ten of which may be on the municipal state-aid street system;
35.17 	(3) determine that the use of design-build in the selected projects would serve the 
35.18 	public interest, after considering, at a minimum:
35.19 	(i) the extent to which the municipality can adequately define the project 
35.20 	requirements in a proposed scope of the design and construction desired;
35.21 	(ii) the time constraints for delivery of the project;
35.22 	(iii) the capability of potential contractors with the design-build method of project 
35.23 	delivery;
35.24 	(iv) the suitability of the project for use of the design-build method of project 
35.25 	delivery with respect to time, schedule, costs, and quality factors;
35.26 	(v) the capability of the municipality to manage the project, including the 
35.27 	employment of experienced personnel or outside consultants; and
35.28 	(vi) the original character of the product or the services;
35.29 	(4) periodically review and evaluate the use of design-build in the selected projects; 
35.30 	and 
35.31 	(5) assist the commissioner in preparing a report to the legislature at the conclusion 
35.32 	of the pilot program.
35.33 		Subd. 3.Membership. (a) The council is composed of the following members:
35.34 	(1) two contractors, at least one of whom represents a small contracting firm, 
35.35 	selected by the Associated General Contractors, Minnesota chapter;
36.1 	(2) two project designers selected by the American Council of Engineering 
36.2 	Companies, Minnesota chapter;
36.3 	(3) one representative of a metropolitan area county selected by the Association 
36.4 	of Minnesota Counties;
36.5 	(4) one representative of a greater Minnesota county selected by the Association 
36.6 	of Minnesota Counties;
36.7 	(5) one representative of a metropolitan area city selected by the League of 
36.8 	Minnesota Cities;
36.9 	(6) one representative of a greater Minnesota city selected by the League of 
36.10 	Minnesota Cities; and
36.11 	(7) the commissioner of transportation or a designee from the Minnesota Department 
36.12 	of Transportation Division of State Aid for Local Transportation.
36.13 	(b) All appointments required by paragraph (a) must be completed by August 
36.14 	1, 2009.
36.15 	(c) The commissioner or the commissioner's designee shall convene the first meeting 
36.16 	of the council within two weeks after the members have been appointed to the council and 
36.17 	shall serve as chair of the council.
36.18 		Subd. 4.Report to legislature. Annually, by January 15, the council shall submit 
36.19 	a report to the chairs and ranking minority members of the legislative committees with 
36.20 	jurisdiction over transportation budget and policy, and to the legislature as provided under 
36.21 	Minnesota Statutes, section 15.059. The report must summarize the design-build pilot 
36.22 	program selection process, including the number of applications considered; the proposal 
36.23 	process for each project that was selected; the contracting process for each project that was 
36.24 	completed; and project costs. The report must evaluate the process and results applying 
36.25 	the performance-based measures with which the commissioner evaluates trunk highway 
36.26 	design-build projects. The report must include any recommendations for future legislation.

36.27 	EFFECTIVE DATE. This section is effective the day following final enactment 
36.28 	and expires on October 1, 2012, or upon completion of nine design-build projects under 
36.29 	this pilot program, whichever occurs first.

36.30 	Sec. 29. DESIGN-BUILD CONTRACTING PILOT PROGRAM.
 36.31 		Subdivision 1.Definitions. The following terms have the meanings given:
36.32 	(1) "commissioner" means the commissioner of transportation;
36.33 	(2) "municipality" means a county or statutory or home rule charter city;
36.34 	(3) "design-build contract" means a single contract between a municipality and a 
36.35 	design-build company or firm to furnish the architectural or engineering and related design 
37.1 	services as well as the labor, material, supplies, equipment, and construction services for 
37.2 	the transportation project;
37.3 	(4) "design-build firm" means a proprietorship, partnership, limited liability 
37.4 	partnership, joint venture, corporation, any type of limited liability company, professional 
37.5 	corporation, or any legal entity;
37.6 	(5) "design professional" means a person who holds a license under Minnesota 
37.7 	Statutes, chapter 326B, that is required to be registered under Minnesota law;
37.8 	(6) "design-build transportation project" means the procurement of both the design 
37.9 	and construction of a transportation project in a single contract with a company or 
37.10 	companies capable of providing the necessary engineering services and construction;
37.11 	(7) "design-builder" means the design-build firm that proposes to design and build a 
37.12 	transportation project governed by the procedures of this section;
37.13 	(8) "request for proposals" or "RFP" means the document by which the municipality 
37.14 	solicits proposals from qualified design-build firms to design and construct the 
37.15 	transportation project;
37.16 	(9) "request for qualifications" or "RFQ" means a document to qualify potential 
37.17 	design-build firms; and
37.18 	(10) "responsive proposal" means a technical proposal of which no major component 
37.19 	(i) contradicts the goals of the project, (ii) materially violates an RFP requirement so as 
37.20 	to give the proposer a competitive advantage, or (iii) places conditions on a proposal 
37.21 	inconsistent with the requirements of the RFP.
37.22 		Subd. 2.Establishment of pilot program. (a) The commissioner of transportation 
37.23 	shall conduct a design-build contracting pilot program to select local transportation 
37.24 	projects for participation in the program, to conduct information sessions for engineers 
37.25 	and contractors, to support and evaluate the use of the design-build method of contracting 
37.26 	by counties and statutory and home rule charter cities in constructing, improving, and 
37.27 	maintaining streets and highways on the state-aid system, and to report to the legislature.
37.28 	(b) The selection of design-build projects under the pilot program must be as made 
37.29 	by the Design-Build Project Selection Council established in section 28.
37.30 		Subd. 3.Licensing requirements.  (a) Each design-builder shall employ, or have 
37.31 	as a partner, member, officer, coventurer, or subcontractor, a person duly licensed and 
37.32 	registered to provide the design services required to complete the project and do business 
37.33 	in the state, including the provision of sureties of sufficient amount to protect the interests 
37.34 	of the awarding municipality.
37.35 	(b) A design-builder may enter into a contract to provide professional or construction 
37.36 	services for a project that the design-builder is not licensed, registered, or qualified to 
38.1 	perform, so long as the design-builder provides those services through subcontractors with 
38.2 	duly licensed, registered, or otherwise qualified individuals in accordance with Minnesota 
38.3 	Statutes, sections 161.3410 to 161.3428.
38.4 	(c) Nothing in this section authorizing design-build contracts is intended to limit or 
38.5 	eliminate the responsibility or liability owed by a professional on a design-build project to 
38.6 	the state, municipality, or other third party under existing law.
38.7 	(d) The design service portion of a design-build contract must be considered a 
38.8 	service and not a product.
38.9 		Subd. 4.Information session for municipal engineer. After a project is selected 
38.10 	for participation in the design-build contracting pilot program, the commissioner or the 
38.11 	commissioner's designee with design-build experience shall conduct an information 
38.12 	session for the municipality's engineer for each selected project, in which issues unique 
38.13 	to design-build must be discussed, including, but not limited to, writing an RFP, project 
38.14 	oversight requirements, assessing risk, and communication with the design-build firm. 
38.15 	After participation in the information session, the municipality's engineer is qualified to 
38.16 	post the selected project, along with any future design-build project RFP in the pilot 
38.17 	program.
38.18 		Subd. 5.Technical Review Committee. During the phase one RFQ and before 
38.19 	solicitation, the municipality shall appoint a Technical Review Committee of at least 
38.20 	five individuals. The Technical Review Committee must include an individual whose 
38.21 	name and qualifications are submitted to the municipality by the Minnesota chapter of 
38.22 	the Associated General Contractors, after consultation with other commercial contractor 
38.23 	associations in the state. Members of the Technical Review Committee who are not state 
38.24 	employees are subject to the Minnesota Government Data Practices Act and Minnesota 
38.25 	Statutes, section 16C.06, to the same extent that state agencies are subject to those 
38.26 	provisions. A Technical Review Committee member may not participate in the review or 
38.27 	discussion of responses to the RFQ or RFP when a design-build firm in which the member 
38.28 	has a financial interest has responded to the RFQ or RFP. "Financial interest" includes, 
38.29 	but is not limited to, being or serving as an owner, employee, partner, limited liability 
38.30 	partner, shareholder, joint venturer, family member, officer, or director of a design-build 
38.31 	firm responding to an RFQ or RFP for a specific project, or having any other economic 
38.32 	interest in that design-build firm. The members of the Technical Review Committee must 
38.33 	be treated as municipal employees in the event of litigation resulting from any action 
38.34 	arising out of their service on the committee.
38.35 		Subd. 6.Phase one; design-build RFQ. The municipality shall prepare an RFQ, 
38.36 	which must include the following:
39.1 	(1) the minimum qualifications of design-builders necessary to meet the requirements 
39.2 	for acceptance;
39.3 	(2) a scope of work statement and schedule;
39.4 	(3) documents defining the project requirements;
39.5 	(4) the form of contract to be awarded;
39.6 	(5) the weighted selection criteria for compiling a short list and the number of firms 
39.7 	to be included in the short list, which must be at least two but not more than five;
39.8 	(6) a description of the request for proposals (RFP) requirements;
39.9 	(7) the maximum time allowed for design and construction;
39.10 	(8) the municipality's estimated cost of design and construction;
39.11 	(9) requirements for construction experience, design experience, financial, personnel, 
39.12 	and equipment resources available from potential design-builders for the project and 
39.13 	experience in other design-build transportation projects or similar projects, provided that 
39.14 	these requirements may not unduly restrict competition; and
39.15 	(10) a statement that "past performance" or "experience" or other criteria used in the 
39.16 	RFQ evaluation process does not include the exercise or assertion of a person's legal rights.
39.17 		Subd. 7.Information session for prospective design-build firms. After a 
39.18 	design-build project is advertised, any prospective design-build firm shall attend a 
39.19 	design-build information session conducted by the commissioner or the commissioner's 
39.20 	designee with design-build experience. The information must include information about 
39.21 	design-build contracts, including, but not limited to, communication with partner firms, 
39.22 	project oversight requirements, assessing risk, and communication with the municipality's 
39.23 	engineer. After participation in the information session, the design-build firm is eligible to 
39.24 	bid on the design-build project and any future design-build pilot program projects.
39.25 		Subd. 8.Evaluation. The selection team shall evaluate the design-build 
39.26 	qualifications of responding firms and shall compile a short list of no more than five 
39.27 	most highly qualified firms in accordance with qualifications criteria described in the 
39.28 	RFQ. If only one design-build firm responds to the RFQ or remains on the short list, the 
39.29 	municipality may readvertise or cancel the project as the municipality deems necessary.
39.30 		Subd. 9.Phase two; design-build RFP. The municipality shall prepare an RFP, 
39.31 	which must include:
39.32 	(1) the scope of work, including (i) performance and technical requirements, (ii) 
39.33 	conceptual design, (iii) specifications consistent with state standards and specifications, 
39.34 	and (iv) functional and operational elements for the delivery of the completed project, all 
39.35 	of which must be prepared by a registered or licensed professional engineer;
40.1 	(2) copies of the contract documents that the successful proposer will be expected to 
40.2 	sign;
40.3 	(3) the maximum time allowable for design and construction;
40.4 	(4) the road authority's estimated cost of design and construction;
40.5 	(5) the requirement that a submitted proposal be segmented into two parts, a 
40.6 	technical proposal and a price proposal;
40.7 	(6) the requirement that each proposal be in a separately sealed, clearly identified 
40.8 	package and include the date and time of the submittal deadline;
40.9 	(7) the requirement that the technical proposal include a critical path method, 
40.10 	bar schedule of the work to be performed, or similar schematic; preliminary design 
40.11 	plans and specifications; technical reports; calculations; permit requirements; applicable 
40.12 	development fees; and other data requested in the RFP;
40.13 	(8) the requirement that the price proposal contain all design, construction, 
40.14 	engineering, inspection, and construction costs of the proposed project;
40.15 	(9) the requirement that surety be submitted equal to the total amount of the proposal;
40.16 	(10) a description of the qualifications required of the design-builder and the 
40.17 	selection criteria, including the weight of each criterion and subcriterion;
40.18 	(11) the date, time, and location of the public opening of the sealed price proposals; 
40.19 	(12) the amount of, and eligibility for, a stipulated fee;
40.20 	(13) other information relevant to the project; and
40.21 	(14) a statement that "past performance," "experience," or other criteria used in the 
40.22 	RFP evaluation process does not include the exercise or assertion of a person's legal rights.
40.23 		Subd. 10.Design-build award; computation; announcement. A design-build 
40.24 	contract shall be awarded as follows:
40.25 	(a) The Technical Review Committee shall score the technical proposals of the 
40.26 	proposers selected under subdivision 8 using the selection criteria in the RFP. The 
40.27 	Technical Review Committee shall then submit a technical proposal score for each 
40.28 	design-builder to the municipality. The Technical Review Committee shall reject any 
40.29 	nonresponsive proposal, including those unable to provide sufficient surety to guarantee 
40.30 	project completion. The municipality shall review the technical proposal scores.
40.31 	(b) The commissioner or the commissioner's designee shall review the technical 
40.32 	proposal scores. The commissioner shall submit the final technical proposal scores to the 
40.33 	municipality.
40.34 	(c) The municipality shall announce the technical proposal score for each 
40.35 	design-builder and shall publicly open the sealed price proposals and shall divide each 
40.36 	design-builder's price by the technical score that the commissioner has given to it to obtain 
41.1 	an adjusted score. The design-builder selected must be that responsive and responsible 
41.2 	design-builder whose adjusted score is the lowest.
41.3 	(d) If a time factor is included with the selection criteria in the RFP package, the 
41.4 	municipality may use a value of the time factor established by the municipality as a 
41.5 	criterion in the RFP.
41.6 	(e) Unless all proposals are rejected, the municipality shall award the contract 
41.7 	to the responsive and responsible design-builder with the lowest adjusted score. The 
41.8 	municipality shall reserve the right to reject all proposals.
41.9 	(f) The municipality shall award a stipulated fee not less than two-tenths of one 
41.10 	percent of the municipality's estimated cost of design and construction to each short-listed, 
41.11 	responsible proposer who provides a responsive but unsuccessful proposal. If the 
41.12 	municipality does not award a contract, all short-listed proposers must receive the 
41.13 	stipulated fee. If the municipality cancels the contract before reviewing the technical 
41.14 	proposals, the municipality shall award each design-builder on the short list a stipulated 
41.15 	fee of not less than two-tenths of one percent of the municipality's estimated cost of 
41.16 	design and construction. The municipality shall pay the stipulated fee to each proposer 
41.17 	within 90 days after the award of the contract or the decision not to award a contract. 
41.18 	In consideration for paying the stipulated fee, the municipality may use any ideas or 
41.19 	information contained in the proposals in connection with any contract awarded for the 
41.20 	project or in connection with a subsequent procurement, without any obligation to pay 
41.21 	any additional compensation to the unsuccessful proposers. Notwithstanding the other 
41.22 	provisions of this subdivision, an unsuccessful short-list proposer may elect to waive 
41.23 	the stipulated fee. If an unsuccessful short-list proposer elects to waive the stipulated 
41.24 	fee, the municipality may not use ideas and information contained in that proposer's 
41.25 	proposal. Upon the request of the municipality, a proposer who waived a stipulated fee 
41.26 	may withdraw the waiver, in which case the municipality shall pay the stipulated fee to the 
41.27 	proposer and thereafter may use ideas and information in the proposer's proposal.
41.28 	(g) The municipality shall not limit the ability of design-builders that have submitted 
41.29 	proposals to protest a contemplated or actual award by the commissioner by, among 
41.30 	other things, unreasonably restricting the time to protest; restricting the right to seek 
41.31 	judicial review of the commissioner's actions; attempting to change the judicial standard 
41.32 	of review; or requiring the protestor to pay attorney fees for an unsuccessful, nonfrivolous 
41.33 	protest. Unless all design-builders that have submitted proposals agree to execution of 
41.34 	a contract for the project without a waiting period beforehand, the municipality shall 
41.35 	wait at least seven days after both the award of the project and public disclosure of the 
42.1 	Technical Review Committee's scoring data and the successful proposal before executing 
42.2 	a contract for the project.
42.3 		Subd. 11.Low-bid design-build process. (a) The municipality may also use 
42.4 	low-bid, design-build procedures to award a design-build contract where the scope of 
42.5 	the work can be clearly defined.
42.6 	(b) Low-bid design-build projects may require an RFQ and short-listing, and must 
42.7 	require an RFP.
42.8 	(c) Submitted proposals under this subdivision must include separately a technical 
42.9 	proposal and a price proposal. The low-bid, design-build procedures must follow a 
42.10 	two-step process for review of the responses to the RFP as follows:
42.11 	(1) the first step is the review of the technical proposal by the Technical Review 
42.12 	Committee as provided in subdivision 5. The Technical Review Committee must open 
42.13 	the technical proposal first and must determine if it complies with the requirements of the 
42.14 	RFP and is responsive. The Technical Review Committee may not perform any ranking 
42.15 	or scoring of the technical proposals; and
42.16 	(2) the second step is the determination of the low bidder based on the price 
42.17 	proposal. The municipality may not open the price proposal until the review of the 
42.18 	technical proposal is complete.
42.19 	(d) The contract award under low-bid, design-build procedures must be made to the 
42.20 	proposer whose sealed bid is responsive to the technical requirements as determined by 
42.21 	the Technical Review Committee and that is also the lowest bid.
42.22 	(e) A stipulated fee may be paid for unsuccessful bids on low-bid, design-build 
42.23 	projects only when the municipality has required an RFQ and short-listed the most highly 
42.24 	qualified responsive bidders.

42.25 	EFFECTIVE DATE. This section is effective the day following final enactment 
42.26 	and expires on October 1, 2012, or upon completion of nine design-build projects under 
42.27 	this pilot program, whichever occurs first.