1.1 	A bill for an act
1.2 	relating to transportation; modifying provisions governing transportation policy 
1.3 	and finance, including trunk highway designation, work and contracting on trunk 
1.4 	highways, motor vehicles, motor vehicle weight limit regulations, motor vehicle 
1.5 	titles, electric-assisted bicycles and related regulations, bridge inspections, 
1.6 	special veterans license plates, pupil transportation, municipal state-aid street 
1.7 	fund eligibility and apportionment, small vehicle passenger service, driver and 
1.8 	vehicle information system, deputy registrars of motor vehicles, civilian escort 
1.9 	drivers, bicycle equipment, school buses, small business contracts, and legislative 
1.10 	reports; making contingent appropriations; setting fees; renumbering statutes; 
1.11 	making technical changes;amending Minnesota Statutes 2010, sections 160.27, 
1.12 	by adding a subdivision; 160.2715; 161.14, by adding a subdivision; 161.20, 
1.13 	subdivision 4; 161.321; 161.3212; 162.09, by adding a subdivision; 165.01; 
1.14 	165.03; 168.002, subdivisions 19, 20; 168.012, by adding a subdivision; 168.013, 
1.15 	subdivision 3, by adding a subdivision; 168.185; 168A.03, subdivision 1; 
1.16 	168A.07, subdivision 1; 169.011, subdivisions 4, 27, 44, 45; 169.06, subdivision 
1.17 	4; 169.222, subdivisions 4, 6, 7, by adding subdivisions; 169.223, subdivisions 
1.18 	1, 5; 169.72, subdivision 1; 169.86, subdivision 3b; 169.872, subdivision 1a; 
1.19 	169.98, subdivisions 1, 3; 171.01, subdivision 41; 171.02, subdivision 2b; 
1.20 	174.03, subdivision 1b; 221.091, subdivision 2; 299D.085, subdivision 1, by 
1.21 	adding a subdivision; 299D.09; 473.388, subdivisions 2, 4; 604A.21, subdivision 
1.22 	5; Minnesota Statutes 2011 Supplement, sections 168.12, subdivision 5; 168.123, 
1.23 	subdivision 1; 171.075, subdivision 1; 299A.705, subdivision 3; Laws 2009, 
1.24 	chapter 158, section 10; Laws 2011, First Special Session chapter 3, article 1, 
1.25 	section 4; proposing coding for new law in Minnesota Statutes, chapters 161; 
1.26 	171; 375; repealing Minnesota Rules, parts 8810.9000; 8810.9100; 8810.9200; 
1.27 	8810.9300; 8810.9400; 8810.9500; 8810.9600; 8810.9700.
1.28 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.29 	Section 1. Minnesota Statutes 2010, section 160.27, is amended by adding a 
1.30 	subdivision to read:
1.31 		Subd. 7a.Trunk highway; temporary sign. (a) A road authority, including a city, 
1.32 	may by permit allow temporary placement of a sign on a pedestrian bridge or overpass 
2.1 	over a trunk highway, when the pedestrian bridge or road constituting the overpass is 
2.2 	under the jurisdiction of that road authority.
2.3 	(b) A sign placed under the permit:
2.4 	(1) may not be otherwise prohibited under section 173.15, clauses (1) to (3);
2.5 	(2) may not reduce the clearance height of the bridge or overpass for vehicles 
2.6 	traveling on the trunk highway;
2.7 	(3) must be secured to the bridge or overpass in a manner that poses no safety 
2.8 	hazards; and
2.9 	(4) may be placed for no more than three consecutive days.
2.10 	(c) A road authority may issue only one temporary sign permit at a time for each 
2.11 	direction of travel under a pedestrian bridge or overpass.
2.12 	(d) A road authority that chooses to issue permits under this subdivision shall 
2.13 	establish application procedures and conditions for permit issuance. At least seven days 
2.14 	prior to issuance of a permit, the road authority shall notify the commissioner of the permit 
2.15 	application and location, and provide a detailed description of the sign. The commissioner 
2.16 	may provide recommendations to the road authority concerning the permit, but may not 
2.17 	prohibit permit issuance or sign placement.
2.18 	(e) For purposes of this subdivision, a sign includes a banner, placard, or flags.

2.19 	Sec. 2. Minnesota Statutes 2010, section 160.2715, is amended to read:
2.20 	160.2715 RIGHT-OF-WAY USE; MISDEMEANORS.
2.21 	(a) Except for the actions of the road authorities, their agents, employees, 
2.22 	contractors, and utilities in carrying out their duties imposed by law or contract, and 
2.23 	except as herein provided, it shall be unlawful to:
2.24 	(1) obstruct any highway or deposit snow or ice thereon;
2.25 	(2) plow or perform any other detrimental operation within the road right-of-way 
2.26 	except in the preparation of the land for planting permanent vegetative cover or as 
2.27 	authorized under section 160.232;
2.28 	(3) erect a fence on the right-of-way of a trunk highway, county state-aid highway, 
2.29 	county highway, or town road, except to erect a lane fence to the ends of a livestock pass;
2.30 	(4) erect or reconstruct driveway headwalls in or on the right-of-way of a highway 
2.31 	or road, except as may be allowed by permit from the road authority imposing reasonable 
2.32 	regulations as are necessary to prevent interference with the construction, maintenance, 
2.33 	and safe use of the highway or road and its appurtenances;
2.34 	(5) dig any holes in any highway, except to locate markers placed to identify 
2.35 	sectional corner positions and private boundary corners;
3.1 	(6) remove any earth, gravel, or rock from any highway;
3.2 	(7) obstruct any ditch draining any highway or drain any noisome materials into 
3.3 	any ditch;
3.4 	(8) place or maintain any building or structure within the limits of any highway;
3.5 	(9) place or maintain any advertisement within the limits of any highway, except as 
3.6 	provided in section 160.27, subdivision 7;
3.7 	(10) paint, print, place, or affix any advertisement or any object within the limits of 
3.8 	any highway, except as provided in section 160.27, subdivision 7;
3.9 	(11) deface, mar, damage, or tamper with any structure, work, material, equipment, 
3.10 	tools, signs, markers, signals, paving, guardrails, drains, or any other highway 
3.11 	appurtenance on or along any highway;
3.12 	(12) remove, injure, displace, or destroy right-of-way markers, or reference or 
3.13 	witness monuments, or markers placed to preserve section or quarter-section corners;
3.14 	(13) improperly place or fail to place warning signs and detour signs as provided by 
3.15 	law;
3.16 	(14) drive over, through, or around any barricade, fence, or obstruction erected for 
3.17 	the purpose of preventing traffic from passing over a portion of a highway closed to public 
3.18 	travel or to remove, deface, or damage any such barricade, fence, or obstruction.
3.19 	(b) Any violation of this section is a misdemeanor.

3.20 	Sec. 3. Minnesota Statutes 2010, section 161.14, is amended by adding a subdivision 
3.21 	to read:
3.22 		Subd. 70.Black and Yellow Trail. Trunk Highway signed 14 as of the effective 
3.23 	date of this section, from the border with South Dakota to the border with Wisconsin, is 
3.24 	designated as the "Black and Yellow Trail." The commissioner shall adopt a suitable 
3.25 	design to mark this highway and erect appropriate signs, subject to section 161.139.

3.26 	Sec. 4. Minnesota Statutes 2010, section 161.20, subdivision 4, is amended to read:
3.27 		Subd. 4.Debt collection. The commissioner shall make reasonable and businesslike 
3.28 	efforts to collect money owed for licenses, fines, penalties, and permit fees or arising from 
3.29 	damages to state-owned property or other causes related to the activities of the Department 
3.30 	of Transportation. Upon specific request, the commissioner of public safety shall provide 
3.31 	to the commissioner of transportation accident reports involving damage to identified 
3.32 	state-owned infrastructure. The commissioner may contract for debt collection services 
3.33 	for the purpose of collecting a money judgment or legal indebtedness. The commissioner 
3.34 	may enter into an agreement with the commissioner of public safety to use debt collection 
4.1 	services authorized by this subdivision when civil penalties relating to the use of highways 
4.2 	have been reduced to money judgment. Money received as full or partial payment shall be 
4.3 	deposited to the appropriate fund. When money is collected through contracted services, 
4.4 	the commissioner may make payment for the service from the money collected. The 
4.5 	amount necessary for payment of contractual collection costs is appropriated from the 
4.6 	fund in which money so collected is deposited.

4.7 	Sec. 5. [161.318] CONTINGENT APPROPRIATIONS; TRUNK HIGHWAY 
4.8 	SYSTEM.
4.9 		Subdivision 1.Department of Transportation. (a) If, on June 30 of an 
4.10 	odd-numbered year, legislation has not been enacted to appropriate money for the next 
4.11 	fiscal year to the commissioner of transportation for state roads, on July 1 an amount 
4.12 	sufficient to pay the costs described in this subdivision is appropriated, for the fiscal 
4.13 	year beginning on that July 1, from the trunk highway fund to the commissioner of 
4.14 	transportation.
4.15 	(b) The appropriation under paragraph (a) is for:
4.16 	(1) actual payments necessary under contracts relating to the budget activities of 
4.17 	operations and maintenance, program planning and delivery, and state road construction; 
4.18 	and
4.19 	(2) an amount necessary to pay the costs of Department of Transportation employees 
4.20 	whose work is essential to (i) the administration and performance of the contracts under 
4.21 	clause (1), including but not limited to project management, contract administration, and 
4.22 	billing administration; and (ii) the administration of available federal reimbursement of 
4.23 	expenses from the contracts under clause (1).
4.24 	(c) The amount appropriated under paragraph (a) may not exceed the total of:
4.25 	(1) unexpended funds from the amounts appropriated for the biennium ending on 
4.26 	June 30 to the commissioner for the budget activities of operations and maintenance, 
4.27 	program planning and delivery, and state road construction;
4.28 	(2) unexpended funds from any amount made available to the commissioner in 
4.29 	carryforward authority into the biennium ending on June 30 for state road construction 
4.30 	projects for which money was originally encumbered in a previous biennium; and
4.31 	(3) the amounts included in the appropriation base for the next fiscal year to the 
4.32 	commissioner for the budget activities of program planning and delivery, and agency 
4.33 	services.
4.34 	(d) Any subsequent appropriation to the commissioner of transportation, or 
4.35 	carryforward authority provided to the commissioner, for a biennium in which this 
5.1 	subdivision has been applied shall supersede and replace the funding authorized in this 
5.2 	subdivision.
5.3 	(e) This subdivision applies only to those contracts as to which funds were 
5.4 	encumbered before the July 1 appropriation date.
5.5 		Subd. 2.Minnesota Management and Budget. (a) If, on June 30 of an 
5.6 	odd-numbered year, legislation has not been enacted to appropriate money for the next 
5.7 	fiscal year to the commissioner of management and budget for central accounting, 
5.8 	procurement, payroll, and human resources functions, on July 1 an amount necessary to 
5.9 	operate those functions, solely for the purposes specified in subdivision 1, is appropriated 
5.10 	for the fiscal year beginning on that July 1 from the general fund to the commissioner of 
5.11 	management and budget. As necessary, the commissioner may transfer a portion of this 
5.12 	appropriation to other state agencies to support carrying out these functions.
5.13 	(b) Any subsequent appropriation to the commissioner of management and budget 
5.14 	for a biennium in which this subdivision has been applied shall supersede and replace 
5.15 	the funding authorized in this subdivision.

5.16 	Sec. 6. [161.3207] CONSTRUCTION MANAGER/GENERAL CONTRACTOR; 
5.17 	DEFINITIONS.
5.18 		Subdivision 1.Scope. The terms used in sections 161.3207 to 161.3209 have the 
5.19 	meanings given them in this section.
5.20 		Subd. 2.Acceptance. "Acceptance" means an action of the commissioner 
5.21 	authorizing the execution of a construction manager/general contractor contract.
5.22 		Subd. 3.Commissioner. "Commissioner" means the commissioner of 
5.23 	transportation.
5.24 		Subd. 4.Construction manager/general contractor. "Construction 
5.25 	manager/general contractor" means a proprietorship, partnership, limited liability 
5.26 	partnership, joint venture, corporation, any type of limited liability company, professional 
5.27 	corporation, or any legal entity selected by the commissioner to act as a construction 
5.28 	manager to manage the construction process, which includes but is not limited to 
5.29 	responsibility for the price, schedule, and execution of preconstruction services or the 
5.30 	workmanship of construction performed according to section 161.3209, or both.
5.31 		Subd. 5.Construction manager/general contractor contract. "Construction 
5.32 	manager/general contractor contract" means a contract for construction of a project 
5.33 	between a construction manager/general contractor and the commissioner, which 
5.34 	must include terms providing for a price, construction schedule, and workmanship of 
5.35 	the construction performed. The construction manager/general contractor contract 
6.1 	may include provisions for incremental price contracts for specific work packages, 
6.2 	additional work performed, contingencies, or other contract provisions that will allow the 
6.3 	commissioner to negotiate time and cost changes to the contract.
6.4 		Subd. 6.Past performance; experience. "Past performance" or "experience" does 
6.5 	not include the exercise or assertion of a person's legal rights.
6.6 		Subd. 7.Preconstruction services. "Preconstruction services" means all 
6.7 	non-construction-related services that a construction manager/general contractor is 
6.8 	allowed to perform before execution of a construction manager/general contractor contract 
6.9 	or work package.
6.10 		Subd. 8.Preconstruction services contract. "Preconstruction services contract" 
6.11 	means a contract under which a construction manager/general contractor is paid on the 
6.12 	basis of the actual cost to perform the work specified in the contract plus an amount for 
6.13 	overhead and profit for all preconstruction services.
6.14 		Subd. 9.Project. "Project" means any project selected by the commissioner as a 
6.15 	construction manager/general contractor project under section 161.3208.
6.16 		Subd. 10.Request for proposals; RFP. "Request for proposals" or "RFP" means 
6.17 	the document or publication soliciting proposals for a construction manager/general 
6.18 	contractor contract.
6.19 		Subd. 11.Request for qualifications; RFQ. "Request for qualifications" or "RFQ" 
6.20 	means a document or publication used to prequalify and short-list potential construction 
6.21 	managers/general contractors.
6.22 		Subd. 12.Work package. "Work package" means the scope of work for a defined 
6.23 	portion of a project. A defined portion includes construction services on any project 
6.24 	aspect, including procuring materials or services.

6.25 	EFFECTIVE DATE. This section is effective the day following final enactment and 
6.26 	expires following the acceptance of ten construction manager/general contractor contracts.

6.27 	Sec. 7. [161.3208] CONSTRUCTION MANAGER/GENERAL CONTRACTOR; 
6.28 	AUTHORITY.
6.29 		Subdivision 1.Selection authority; limitation. Notwithstanding sections 16C.25, 
6.30 	161.32, and 161.321, or any other law to the contrary, the commissioner may select a 
6.31 	construction manager/general contractor as provided in section 161.3209, and award a 
6.32 	construction manager/general contractor contract. The number of awarded contracts 
6.33 	shall not exceed four in any calendar year.
6.34 		Subd. 2.Determination. Final determination to use a construction manager/general 
6.35 	contractor contracting procedure may be made only by the commissioner.
7.1 		Subd. 3.Cancellation. The solicitation of construction manager/general contractor 
7.2 	requests for qualifications or proposals does not obligate the commissioner to enter into a 
7.3 	construction manager/general contractor contract. The commissioner may accept or reject 
7.4 	any or all responses received as a result of the request. The solicitation of proposals may 
7.5 	be canceled at any time at the commissioner's sole discretion if cancellation is considered 
7.6 	to be in the state's best interest. If the commissioner rejects all responses or cancels the 
7.7 	solicitation for proposals, the commissioner may resolicit a request for proposals using the 
7.8 	same or different requirements.
7.9 		Subd. 4.Reporting. The commissioner shall notify the chairs and ranking minority 
7.10 	members of the legislative committees with jurisdiction over transportation policy 
7.11 	and transportation finance each time the commissioner decides to use the construction 
7.12 	manager/general contractor method of procurement and explain why that method was 
7.13 	chosen.

7.14 	EFFECTIVE DATE. This section is effective the day following final enactment and 
7.15 	expires following the acceptance of ten construction manager/general contractor contracts.

7.16 	Sec. 8. [161.3209] CONSTRUCTION MANAGER/GENERAL CONTRACTOR; 
7.17 	PROCEDURES.
7.18 		Subdivision 1.Solicitation of proposals. If the commissioner determines that 
7.19 	a construction manager/general contractor method of procurement is appropriate for 
7.20 	a project, the commissioner shall establish a two-phase procedure for awarding the 
7.21 	construction manager/general contractor contract, as described in subdivisions 2 and 3.
7.22 		Subd. 2.Phase 1 - request for proposals. (a) The commissioner shall prepare 
7.23 	or have prepared an RFP for each construction manager/general contractor contract as 
7.24 	provided in this section. The RFP must contain, at a minimum, the following elements:
7.25 	(1) the minimum qualifications of the construction manager/general contractor;
7.26 	(2) the procedures for submitting proposals and the criteria for evaluation of 
7.27 	qualifications and the relative weight for each criteria;
7.28 	(3) the form of the contract to be awarded;
7.29 	(4) the scope of intended construction work;
7.30 	(5) a listing of the types of preconstruction services that will be required;
7.31 	(6) an anticipated schedule for commencing and completing the project;
7.32 	(7) any applicable budget limits for the project;
7.33 	(8) the requirements for insurance, statutorily required performance, and payment 
7.34 	bonds;
8.1 	(9) the requirements that the construction manager/general contractor provide a 
8.2 	letter from a surety or insurance company stating that the construction manager/general 
8.3 	contractor is capable of obtaining a performance bond and payment bond covering the 
8.4 	estimated contract cost;
8.5 	(10) the method for how construction manager/general contractor fees for the 
8.6 	preconstruction services contract will be negotiated;
8.7 	(11) a statement that past performance or experience does not include the exercise 
8.8 	or assertion of a person's legal rights; and
8.9 	(12) any other information desired by the commissioner.
8.10 	(b) Before receiving any responses to the RFP:
8.11 	(1) The commissioner shall appoint a technical review committee of at least five 
8.12 	individuals, of which one is a Department of Transportation manager who is also a 
8.13 	licensed professional engineer in Minnesota.
8.14 	(2) The technical review committee shall evaluate the construction manager/general 
8.15 	contractor proposals according to criteria and subcriteria published in the RFP and 
8.16 	procedures established by the commissioner. The commissioner shall, as designated in 
8.17 	the RFP, evaluate construction manager/general contractor proposals on the basis of best 
8.18 	value as defined in section 16C.05, or using the qualifications-based selection process 
8.19 	set forth in section 16C.095, except section 16C.095, subdivision 1 does not apply. If 
8.20 	the commissioner does not receive at least two proposals from construction managers, 
8.21 	the commissioner may:
8.22 	(i) solicit new proposals;
8.23 	(ii) revise the RFP and thereafter solicit new proposals using the revised RFP;
8.24 	(iii) select another allowed procurement method; or
8.25 	(iv) reject the proposals.
8.26 	(3) The technical review committee shall evaluate the responses to the request for 
8.27 	proposals and rank the construction manager/general contractor based on the predefined 
8.28 	criteria set forth in the RFP in accordance with paragraph (a), clause (2).
8.29 	(c) Unless all proposals are rejected, the commissioner shall conduct contract 
8.30 	negotiations for a preconstruction services contract with the construction manager/general 
8.31 	contractor with the highest ranking. If the construction manager/general contractor with 
8.32 	the highest ranking declines or is unable to reach an agreement, the commissioner may 
8.33 	begin contract negotiations with the next highest ranked construction manager/general 
8.34 	contractor.
8.35 	(d) Before issuing the RFP, the commissioner may elect to issue a request for 
8.36 	qualifications (RFQ) and short-list the most highly qualified construction managers/general 
9.1 	contractors. The RFQ must include the procedures for submitting statements of 
9.2 	qualification, the criteria for evaluation of qualifications, and the relative weight for each 
9.3 	criterion. The statements of qualifications must be evaluated by the technical review 
9.4 	committee.
9.5 		Subd. 3.Phase 2 - construction manager/general contractor contract. (a) Before 
9.6 	conducting any construction-related services, the commissioner shall:
9.7 	(1) conduct an independent cost estimate for the project or each work package; and
9.8 	(2) conduct contract negotiations with the construction manager/general contractor 
9.9 	to develop a construction manager/general contractor contract. This contract must include 
9.10 	a minimum construction manager/general contractor self-performing requirement of 30 
9.11 	percent of the negotiated cost. Items designated in the construction manager/general 
9.12 	contractor contract as specialty items may be subcontracted and the cost of any specialty 
9.13 	item performed under the subcontract will be deducted from the cost before computing the 
9.14 	amount of work required to be performed by the contractor.
9.15 	(b) If the construction manager/general contractor and the commissioner are unable 
9.16 	to negotiate a contract, the commissioner may use other contract procurement processes or 
9.17 	may readvertise the construction manager/general contractor contract. The construction 
9.18 	manager/general contractor may (1) bid or propose on the project if advertised under 
9.19 	section 161.32 or 161.3206 or (2) join a design-build team if advertised under sections 
9.20 	161.3410 to 161.3428.
9.21 	(c) The commissioner shall provide to all bidders or design-build teams, all data 
9.22 	shared between the commissioner and the construction manager/general contractor during 
9.23 	the contract negotiations under this subdivision.

9.24 	EFFECTIVE DATE. This section is effective the day following final enactment and 
9.25 	expires following the acceptance of ten construction manager/general contractor contracts.

9.26 	Sec. 9. Minnesota Statutes 2010, section 161.321, is amended to read:
9.27 	161.321 SMALL BUSINESS CONTRACTS.
9.28 		Subdivision 1.Definitions. For purposes of this section the following terms have 
9.29 	the meanings given them, except where the context clearly indicates a different meaning is 
9.30 	intended.
9.31 	(a) "Award" means the granting of a contract in accordance with all applicable laws 
9.32 	and rules governing competitive bidding except as otherwise provided in this section.
9.33 	(b) "Contract" means an agreement entered into between a business entity and the 
9.34 	state of Minnesota for the construction of transportation improvements.
10.1 	(c) "Subcontractor" means a business entity which enters into a legally binding 
10.2 	agreement with another business entity which is a party to a contract as defined in 
10.3 	paragraph (b).
10.4 	(d) "Targeted group business" means a business designated under section 16C.16, 
10.5 	subdivision 5.
10.6 	(e) "Veteran-owned small business" means a business designated under section 
10.7 	16C.16, subdivision 6a.
10.8 		Subd. 2.Small targeted group business, small business set-asides; contract 
10.9 	preferences. (a) The commissioner may award up to a six percent preference in the 
10.10 	amount bid for specified construction work to small targeted group businesses and 
10.11 	veteran-owned small businesses.
10.12 	(b) The commissioner may designate a contract for construction work for award only 
10.13 	to small targeted group businesses if the commissioner determines that at least three small 
10.14 	targeted group businesses are likely to bid. The commissioner may designate a contract for 
10.15 	construction work for award only to veteran-owned small businesses if the commissioner 
10.16 	determines that at least three veteran-owned small businesses are likely to bid.
10.17 	(c) The commissioner, as a condition of awarding a construction contract, may 
10.18 	set goals that require the prime contractor to subcontract a portion of the contract to 
10.19 	small targeted group businesses and veteran-owned small businesses. The commissioner 
10.20 	must establish a procedure for granting waivers from the subcontracting requirement 
10.21 	when qualified small targeted group businesses and veteran-owned small businesses 
10.22 	are not reasonably available. The commissioner may establish financial incentives for 
10.23 	prime contractors who exceed the goals for use of subcontractors and financial penalties 
10.24 	for prime contractors who fail to meet goals under this paragraph. The subcontracting 
10.25 	requirements of this paragraph do not apply to prime contractors who are small targeted 
10.26 	group businesses or veteran-owned small businesses.
10.27 	(d) (c) The commissioner may award up to a four percent preference in the amount 
10.28 	bid on procurement for specified construction work to small businesses located in an 
10.29 	economically disadvantaged area as defined in section 16C.16, subdivision 7.
10.30 		Subd. 2a.Small targeted group business; subcontracting goals. (a) The 
10.31 	commissioner, as a condition of awarding a construction contract, may set goals that 
10.32 	require the prime contractor to subcontract portions of the contract to small targeted 
10.33 	group businesses. Prime contractors must demonstrate good faith efforts to meet the 
10.34 	project goals. The commissioner shall establish a procedure for granting waivers from 
10.35 	the subcontracting requirement when qualified small targeted group businesses are not 
10.36 	reasonably available. The commissioner may establish (1) financial incentives for prime 
11.1 	contractors who exceed the goals set for the use of subcontractors under this subdivision; 
11.2 	and (2) sanctions for prime contractors who fail to make good faith efforts to meet the 
11.3 	goals set under this subdivision.
11.4 	(b) The small targeted group business subcontracting requirements of this 
11.5 	subdivision do not apply to prime contractors who are small targeted group businesses.
11.6 		Subd. 2b.Veteran-owned small business; contract preferences. (a) The 
11.7 	commissioner may award up to a six percent preference in the amount bid for specified 
11.8 	construction work to veteran-owned small businesses, except when prohibited by the 
11.9 	federal government as a condition of receiving federal funds. When a bid preference is 
11.10 	provided under this subdivision, the percentage of preference in bid amount may not be 
11.11 	less than the percentage of bid preference provided to any small targeted group business 
11.12 	under subdivision 2.
11.13 	(b) When a bid preference is provided under this subdivision, the commissioner 
11.14 	must be as inclusive as possible in specifying contracts for construction work, as well 
11.15 	as for construction-related professional and technical services, available under this bid 
11.16 	preference program for veteran-owned small businesses. The term "construction" must be 
11.17 	given broad meaning for purposes of specifying and letting contracts for veteran-owned 
11.18 	small businesses and must include, but is not limited to, preplanning, planning, and all 
11.19 	other construction-related professional and technical services.
11.20 	(c) When a bid preference is provided under this subdivision, the commissioner 
11.21 	must strive to ensure that contracts will be awarded on a proportional basis with contracts 
11.22 	awarded under subdivision 2.
11.23 	(d) The commissioner may designate a contract for construction work for award 
11.24 	only to veteran-owned small businesses, if the commissioner determines that at least three 
11.25 	veteran-owned small businesses are likely to bid.
11.26 		Subd. 2c.Veteran-owned small business; subcontracting goals. (a) The 
11.27 	commissioner, as a condition of awarding a construction contract, may set goals that 
11.28 	require the prime contractor to subcontract portions of the contract to veteran-owned small 
11.29 	businesses, except when prohibited by federal law or rule as a condition of receiving 
11.30 	federal funds. Prime contractors must demonstrate good faith efforts to meet the project 
11.31 	goals. The commissioner shall establish a procedure for granting waivers from the 
11.32 	subcontracting requirement when qualified veteran-owned small businesses are not 
11.33 	reasonably available. The commissioner may establish (1) financial incentives for prime 
11.34 	contractors who exceed the goals set for the use of subcontractors under this subdivision; 
11.35 	and (2) sanctions for prime contractors who have not been granted a waiver and fail 
11.36 	to meet goals set under this subdivision.
12.1 	(b) The subcontracting requirements of this subdivision do not apply to prime 
12.2 	contractors who are veteran-owned small businesses.
12.3 		Subd. 3.Small targeted group business subcontract awards to small businesses.
 12.4 	At least 75 percent of subcontracts awarded to small targeted group businesses must be 
12.5 	performed by the business to which the subcontract is awarded or another small targeted 
12.6 	group business. 
12.7 		Subd. 3a.Veteran-owned small business; subcontract awards. At least 75 
12.8 	percent of subcontracts awarded to veteran-owned small businesses must be performed by 
12.9 	the business to which the subcontract is awarded or another veteran-owned small business.
12.10 		Subd. 4.Contract awards, limitations. Contracts awarded pursuant to this 
12.11 	section are subject to all limitations contained in rules adopted by the commissioner 
12.12 	of administration.
12.13 		Subd. 4a.Small targeted group business; limited duration and reevaluation.
 12.14 	The commissioner shall cooperate with the commissioner of administration to periodically 
12.15 	reevaluate the targeted group businesses to determine whether there is a statistical disparity 
12.16 	between the percentage of construction contracts awarded to businesses owned by targeted 
12.17 	group members and the representation of businesses owned by targeted group members 
12.18 	among all businesses in the state in the construction category. The commissioner of 
12.19 	administration shall designate targeted groups pursuant to section 16C.16, subdivision 5.
12.20 		Subd. 5.Recourse to other businesses. If the commissioner is unable to award 
12.21 	a contract pursuant to the provisions of subdivisions 2 and 3 to 4a, the award may be 
12.22 	placed pursuant to the normal solicitation and award provisions set forth in this chapter 
12.23 	and chapter 16C.
12.24 		Subd. 6.Rules; eligibility. (a) The rules adopted by the commissioner of 
12.25 	administration to define small businesses and to set time and other eligibility requirements 
12.26 	for participation in programs under sections 16C.16 to 16C.19 apply to this section. The 
12.27 	commissioner may promulgate other rules necessary to carry out this section.
12.28 	(b) In addition to other eligibility requirements, a small targeted group business or 
12.29 	veteran-owned small business is eligible for the bid preferences under this section only for 
12.30 	eight years following the latest of:
12.31 	(1) the effective date of this section;
12.32 	(2) for a targeted group business, the date of initial certification by the commissioner 
12.33 	of administration, as provided under section 16C.19;
12.34 	(3) for a veteran-owned small business, the date of initial certification by the United 
12.35 	States Department of Veterans Affairs, as provided under section 16C.19, paragraph (d); or
13.1 	(4) for a veteran-owned small business, the release or discharge of any one of the 
13.2 	owners from military active service, as defined in section 190.05, subdivision 5, lasting for 
13.3 	a period of 179 days or longer.
13.4 		Subd. 7.Noncompetitive bids. The commissioner is encouraged to purchase 
13.5 	from small targeted group businesses and veteran-owned small businesses designated 
13.6 	under section 16C.16 when making purchases that are not subject to competitive bidding 
13.7 	procedures.
13.8 		Subd. 8.Report by commissioner Reporting. (a) The commissioner of 
13.9 	transportation shall report to the commissioner of administration on compliance with this 
13.10 	section. The information must be reported at the time and in the manner requested by the 
13.11 	commissioner of administration.
13.12 	(b) By February 1 of each even-numbered year, the commissioner of transportation 
13.13 	shall submit a report to the chairs and ranking minority members of the legislative 
13.14 	committees with jurisdiction over transportation policy and finance and veterans policy 
13.15 	and finance concerning contract awards during the preceding biennium under this section. 
13.16 	At a minimum, the report must include:
13.17 	(1) a summary of the program;
13.18 	(2) a review of the use of preferences for contracting during the preceding biennium, 
13.19 	including frequency of establishment of a preference and frequency and amount of 
13.20 	contract awards to:
13.21 	(i) small targeted group businesses; and
13.22 	(ii) veteran-owned small businesses;
13.23 	(3) a review of goals and good faith efforts to use small targeted group businesses 
13.24 	and veteran-owned small businesses in subcontracts, including analysis of methods used 
13.25 	for, and effectiveness of, good faith efforts;
13.26 	(4) a summary of any financial incentives used or sanctions imposed;
13.27 	(5) agency commentary on any perceived impediments, whether statutory, 
13.28 	administrative, or otherwise, that may be limiting the participation of small targeted 
13.29 	group businesses and veteran-owned small businesses in the agency's contract preference 
13.30 	program;
13.31 	(6) information on each reevaluation under subdivision 4a, including details on the 
13.32 	methodology for reevaluation; and
13.33 	(7) any recommendations for legislative or programmatic changes.
13.34 		Subd. 9.Veteran-owned small business; purpose. The purpose of the state 
13.35 	contracting bid preference program for veteran-owned small businesses is to facilitate 
13.36 	the healthy transition of veterans from military to civilian life, and to help compensate 
14.1 	veterans for their sacrifices including, but not limited to, their sacrifice of health and 
14.2 	time to the state and nation during their military service, as well as to enhance economic 
14.3 	development within Minnesota.

14.4 	EFFECTIVE DATE. This section is effective the day following final enactment 
14.5 	and applies to contracts let on or after July 1, 2012.

14.6 	Sec. 10. Minnesota Statutes 2010, section 161.3212, is amended to read:
14.7 	161.3212 WORKING CAPITAL FUND.
14.8 	The commissioner, to the extent allowed by other law or contract, may grant 
14.9 	available money that has been appropriated for socially or economically disadvantaged 
14.10 	business programs to a guaranty fund administered by a nonprofit organization that makes 
14.11 	or guarantees working capital loans to businesses small business concerns owned and 
14.12 	operated by socially or and economically disadvantaged persons as defined individuals. 
14.13 	"Small business concern" and "socially and economically disadvantaged individual" have 
14.14 	the meanings given them in Code of Federal Regulations, title 49, section 23.5 26.5. The 
14.15 	purpose of loans made or guaranteed by the organization must be to provide short-term 
14.16 	working capital to enable eligible businesses to be awarded contracts for goods and 
14.17 	services or for construction-related services from government agencies.
14.18 	Money contributed from a constitutionally or statutorily dedicated fund must be used 
14.19 	only for purposes consistent with the purposes of the dedicated fund.

14.20 	Sec. 11. Minnesota Statutes 2010, section 162.09, is amended by adding a subdivision 
14.21 	to read:
14.22 		Subd. 11.Additional municipal state-aid street cities. (a) For purposes of this 
14.23 	subdivision, the following terms have the meanings given them:
14.24 	(1) "local bridge project costs" means the total amount of money expended by a 
14.25 	statutory or home rule charter city that, as determined by the commissioner in consultation 
14.26 	with the city, is (i) directly attributable to, or directly resulting from, a trunk highway 
14.27 	system project to construct a new bridge over the St. Croix River in Washington County; 
14.28 	and (ii) not offset by other sources of state or federal funds; and
14.29 	(2) "state-aid eligible city" means any statutory or home rule charter city that incurs 
14.30 	local bridge project costs and has a population of more than 4,000 but less than 5,000 
14.31 	according to the most recent federal decennial census.
14.32 	(b) Notwithstanding subdivision 4, state-aid eligible city is deemed:
14.33 	(1) to have a population that is 5,000 for purposes of this chapter; and
15.1 	(2) notwithstanding section 162.13, subdivision 2, to have money needs equal to 
15.2 	the local bridge project costs for the city.
15.3 	(c) Notwithstanding section 162.13, subdivision 1, the total apportionment to a 
15.4 	state-aid eligible city, across all years in which this subdivision applies, may not exceed 
15.5 	the most recent calculation of local bridge project costs for the city.
15.6 	(d) Except as provided in paragraph (e), the requirements of paragraph (b) apply to a 
15.7 	city for 20 calendar years following the first year in which the city becomes a state-aid 
15.8 	eligible city.
15.9 	(e) This subdivision does not apply if a city has a population of 5,000 or more as 
15.10 	determined by the most recent federal decennial census or under subdivision 4.

15.11 	Sec. 12. Minnesota Statutes 2010, section 165.01, is amended to read:
15.12 	165.01 DEFINITIONS.
15.13 		Subdivision 1.Scope. For the purposes of this chapter, the terms defined in this 
15.14 	section and section 160.02 have the meanings given them.
15.15 		Subd. 2.AASHTO manual. "AASHTO manual" means the Manual for Condition 
15.16 	Evaluation of Bridges, published by the American Association of State Highway and 
15.17 	Transportation Officials. "The Manual for Bridge Evaluation," published by the American 
15.18 	Association of State Highway and Transportation Officials, is incorporated by reference.
15.19 		Subd. 3.Bridge. "Bridge" is defined as a structure, including supports erected over 
15.20 	a depression or an obstruction, such as water, a highway, or a railway, having a track or 
15.21 	passageway for carrying traffic or other moving loads, and having an opening measured 
15.22 	horizontally along the center of the roadway of ten feet or more between undercopings 
15.23 	of abutments, between spring line of arches, or between extreme ends of openings for 
15.24 	multiple boxes. Bridge also includes multiple pipes where the clear distance between 
15.25 	openings is less than one-half of the smaller contiguous opening. This definition of a 
15.26 	bridge includes only those railroad and pedestrian bridges over a public highway or street.
15.27 		Subd. 4.National Bridge Inspection Standards (NBIS). "NBIS" means standards 
15.28 	established by the Federal Highway Administration in Code of Federal Regulations, title 
15.29 	23, part 650, subpart C, incorporated by reference.

15.30 	Sec. 13. Minnesota Statutes 2010, section 165.03, is amended to read:
15.31 	165.03 STRENGTH OF BRIDGE; INSPECTION.
15.32 		Subdivision 1.Standards generally. Each bridge, including a privately owned 
15.33 	bridge, must conform to the strength, width, clearance, and safety standards imposed 
15.34 	by the commissioner for the connecting highway or street. This subdivision applies to 
16.1 	a bridge that is constructed after August 1, 1989, on any public highway or street. The 
16.2 	bridge must have sufficient strength to support with safety the maximum vehicle weights 
16.3 	allowed under sections 169.822 to 169.829 and must have the minimum width specified 
16.4 	in section 165.04, subdivision 3.
16.5 		Subd. 1a.Inspection. (a) Each bridge must be inspected annually, unless a longer 
16.6 	interval not to exceed two years 24 months for bridges or four years 48 months for bridges 
16.7 	classified as culverts is authorized by the commissioner. The commissioner's authorization 
16.8 	must be based on factors including, but not limited to, the age and condition of the 
16.9 	bridge, the rate of deterioration of the bridge, the type of structure, the susceptibility of 
16.10 	the bridge to failure, and the characteristics of traffic on the bridge. The commissioner 
16.11 	may require interim inspections at intervals of less than one year on bridges that are 
16.12 	posted, bridges subjected to extreme scour conditions, bridges subject to significant 
16.13 	substructure movement or settlement, and for other reasons as specified or inferred in the 
16.14 	AASHTO manual.
16.15 	(b) Additional requirements apply to structures meeting the NBIS definition of 
16.16 	a bridge:
16.17 	(1) Underwater structural elements must be inspected at regular intervals not to 
16.18 	exceed 60 months. The commissioner may require inspections at intervals of less than 
16.19 	60 months on certain underwater structural elements based on factors including, but not 
16.20 	limited to, construction material, the environment, age, the scour characteristics, the 
16.21 	condition rating from past inspections, and any known deficiencies.
16.22 	(2) Fracture critical members, or FCMs, must receive a hands-on fracture critical 
16.23 	inspection at intervals not to exceed 24 months. The commissioner may require 
16.24 	inspections at intervals of less than 24 months on certain FCMs based on factors including, 
16.25 	but not limited to, age, the traffic characteristics, and any known deficiencies.
16.26 	(3) The commissioner may establish criteria to determine the level and frequency of 
16.27 	these inspections. If warranted by special circumstances, the commissioner retains the 
16.28 	authority to determine the inspection type and required inspection frequency for any 
16.29 	bridge on the state inventory.
16.30 	(b) (c) The thoroughness of each inspection depends on such factors as age, traffic 
16.31 	characteristics, state of maintenance, and known deficiencies. The evaluation of these 
16.32 	factors is the responsibility of the engineer assigned the responsibility for inspection as 
16.33 	defined by rule adopted by the commissioner of transportation.
16.34 		Subd. 2.Inspection and inventory responsibilities; rules; forms. (a) The 
16.35 	commissioner of transportation will adopt the National Bridge Inspection Standards 
16.36 	(NBIS) established by the Federal Highway Administration in Code of Federal 
17.1 	Regulations, title 23, part 650, subpart C, or its successor documents for structures 
17.2 	meeting the NBIS definition of a bridge. The commissioner shall establish inspection and 
17.3 	inventory standards for structures defined as bridges by section 165.01, subdivision 3.
17.4 	(a) (b) The commissioner of transportation shall adopt official inventory and bridge 
17.5 	inspection report forms for use in making bridge inspections by the owners or highway 
17.6 	authorities specified by this subdivision. Inspections must be made at regular intervals, 
17.7 	not to exceed two years for bridges and not to exceed four years for culverts the intervals 
17.8 	outlined in subdivision 1a, by the following owner or official:
17.9 	(1) the commissioner of transportation for all bridges located wholly or partially 
17.10 	within or over the right-of-way of a state trunk highway;
17.11 	(2) the county highway engineer for all bridges located wholly or partially within or 
17.12 	over the right-of-way of any county or town road, or any street within a municipality that 
17.13 	does not have a city engineer regularly employed;
17.14 	(3) the city engineer for all bridges located wholly or partially within or over the 
17.15 	right-of-way of any street located within or along municipal limits;
17.16 	(4) the commissioner of transportation in case of a toll bridge that is used by the 
17.17 	general public and that is not inspected and certified under subdivision 6; provided, that 
17.18 	the commissioner of transportation may assess the owner for the costs of the inspection;
17.19 	(5) the owner of a bridge over a public highway or street or that carries a roadway 
17.20 	designated for public use by a public authority, if not required to be inventoried and 
17.21 	inspected under clause (1), (2), (3), or (4).
17.22 	(b) (c) The commissioner of transportation shall prescribe the standards for bridge 
17.23 	inspection and inventory by rules inspection and inventory procedures required to 
17.24 	administer the bridge inspection program in Minnesota and has the authority to establish 
17.25 	and publish standards that describe the inspection and inventory requirements to ensure 
17.26 	compliance with paragraph (a). The owner or highway authority shall inspect and 
17.27 	inventory in accordance with these standards and furnish the commissioner with such data 
17.28 	as may be necessary to maintain a central inventory.
17.29 		Subd. 3.County inventory and inspection records and reports. The county 
17.30 	engineer shall maintain a complete inventory record of all bridges as set forth in 
17.31 	subdivision 2, paragraph (a) (b), clause (2), with the inspection reports thereof, and shall 
17.32 	certify annually to the commissioner, as prescribed by the commissioner, that inspections 
17.33 	have been made at regular intervals, not to exceed two years for bridges and not to 
17.34 	exceed four years for culverts the intervals outlined in subdivision 1a. A report of the 
17.35 	inspections must be filed annually, on or before February 15 of each year, with the county 
17.36 	auditor or town clerk, or the governing body of the municipality. The report must contain 
18.1 	recommendations for the correction of or legal posting of load limits on any bridge or 
18.2 	structure that is found to be understrength or unsafe.
18.3 		Subd. 4.Municipal inventory and inspection records and reports. The 
18.4 	city engineer shall maintain a complete inventory record of all bridges as set forth in 
18.5 	subdivision 2, paragraph (a) (b), clause (3), with the inspection reports thereof, and shall 
18.6 	certify annually to the commissioner, as prescribed by the commissioner, that inspections 
18.7 	have been made at regular intervals, not to exceed two years for bridges and not to exceed 
18.8 	four years for culverts the intervals outlined in subdivision 1a. A report of the inspections 
18.9 	must be filed annually, on or before February 15 of each year, with the governing body of 
18.10 	the municipality. The report must contain recommendations for the correction of or legal 
18.11 	posting of load limits on any bridge or structure that is found to be understrength or unsafe.
18.12 		Subd. 5.Agreement. Agreements may be made among the various units of 
18.13 	governments, or between governmental units and qualified engineering personnel to 
18.14 	carry out the responsibilities for the bridge inspections and reports, as established by 
18.15 	subdivision 2.
18.16 		Subd. 6.Other bridges. The owner of a toll bridge and the owner of a bridge 
18.17 	described in subdivision 2, paragraph (a) (b), clause (5), shall certify to the commissioner, 
18.18 	as prescribed by the commissioner, that inspections of the bridge or culvert have been 
18.19 	made at regular intervals, not to exceed two years for bridges and not to exceed four years 
18.20 	for culverts the intervals outlined in subdivision 1a. The certification must be accompanied 
18.21 	by a report of the inspection. The report must contain recommendations for the correction 
18.22 	of or legal posting of load limitations if the bridge is found to be understrength or unsafe.
18.23 		Subd. 6a.Bridge load rating and posting. (a) The term "posting" means the 
18.24 	placement of regulatory signs at a bridge indicating the safe load carrying capacity of 
18.25 	the bridge.
18.26 	(b) Each structure required to be inspected by subdivision 2, paragraph (a), must be 
18.27 	load rated to determine its safe load carrying capacity, and this rating must be reported 
18.28 	on a structure inventory sheet form provided by the commissioner of transportation. A 
18.29 	structure must be rerated when it is determined that a significant change has occurred in 
18.30 	the condition of the structure or due to additional dead load placed on the structure since 
18.31 	the last load rating. Load ratings must be reviewed and the structure rerated if necessary 
18.32 	when the allowable legal load using the structure is increased. Changes in the load rating 
18.33 	of a bridge must be indicated on the structure inventory sheet form.
18.34 	(c) Where it is determined that the maximum legal load under state law exceeds 
18.35 	the load permitted on the structure under the operating rating stress level assigned, the 
18.36 	bridge must be posted. Posting signs as adopted by the commissioner shall be used for 
19.1 	the posting. The owner or highway authority shall post the bridge in accordance with the 
19.2 	posted load assigned by the commissioner.
19.3 		Subd. 7.Department of Natural Resources bridge. (a) Notwithstanding 
19.4 	subdivision 2, the commissioners of transportation and natural resources shall negotiate a 
19.5 	memorandum of understanding that governs the inspection of bridges owned, operated, 
19.6 	or maintained by the commissioner of natural resources.
19.7 	(b) The memorandum of understanding must provide for:
19.8 	(1) the inspection and inventory of bridges subject to federal law or regulations;
19.9 	(2) the frequency of inspection of bridges described in paragraph (a) subdivision 
19.10 	1a; and
19.11 	(3) who may perform inspections required under the memorandum of understanding.
19.12 		Subd. 8.Biennial report on bridge inspection quality assurance. By February 
19.13 	1 of each odd-numbered year, the commissioner shall submit a report electronically to 
19.14 	the members of the senate and house of representatives committees with jurisdiction over 
19.15 	transportation policy and finance concerning quality assurance for bridge inspections. 
19.16 	At a minimum, the report must:
19.17 	(1) summarize the bridge inspection quality assurance and quality control procedures 
19.18 	used in Minnesota;
19.19 	(2) identify any substantive changes to quality assurance and quality control 
19.20 	procedures made in the previous two years;
19.21 	(3) summarize and provide a briefing on findings from bridge inspection quality 
19.22 	reviews performed in the previous two years;
19.23 	(4) identify actions taken and planned in response to findings from bridge inspection 
19.24 	quality reviews performed in the previous two years;
19.25 	(5) summarize the results of any bridge inspection compliance review by the Federal 
19.26 	Highway Administration; and
19.27 	(6) identify actions in response to the Federal Highway Administration compliance 
19.28 	review taken by the department in order to reach full compliance.

19.29 	Sec. 14. Minnesota Statutes 2010, section 168.002, subdivision 19, is amended to read:
19.30 		Subd. 19.Motorcycle. "Motorcycle" means every motor vehicle having a seat or 
19.31 	saddle for the use of the rider and designed to travel on not more than three wheels in 
19.32 	contact with the ground, including motor scooters and bicycles with motor attached, other 
19.33 	than those vehicles defined as motorized bicycles in subdivision 20, but excluding a tractor
19.34 	has the meaning given in section 169.011, subdivision 44.

20.1 	Sec. 15. Minnesota Statutes 2010, section 168.002, subdivision 20, is amended to read:
20.2 		Subd. 20.Motorized bicycle. "Motorized bicycle" means a bicycle that is propelled 
20.3 	by an electric or a liquid fuel motor of a piston displacement capacity of 50 cubic 
20.4 	centimeters or less, and a maximum of two brake horsepower, which is capable of a 
20.5 	maximum speed of not more than 30 miles per hour on a flat surface with not more than 
20.6 	one percent grade in any direction when the motor is engaged. "Motorized bicycle" 
20.7 	includes an electric-assisted bicycle as defined in section 169.011, subdivision 27 has the 
20.8 	meaning given in section 169.011, subdivision 45.

20.9 	Sec. 16. Minnesota Statutes 2010, section 168.012, is amended by adding a subdivision 
20.10 	to read:
20.11 		Subd. 2d.Electric-assisted bicycles. Electric-assisted bicycles must not be taxed as 
20.12 	motor vehicles using the public streets and highways, and are exempt from the provisions 
20.13 	of this chapter.

20.14 	Sec. 17. Minnesota Statutes 2010, section 168.013, subdivision 3, is amended to read:
20.15 		Subd. 3.Application; cancellation; excessive gross weight forbidden. (a) The 
20.16 	applicant for all licenses based on gross weight shall state the unloaded weight of the 
20.17 	motor vehicle, trailer, or semitrailer and the maximum load the applicant proposes to carry 
20.18 	on it, the sum of which constitutes the gross weight upon which the license tax must be 
20.19 	paid. However, the declared gross weight upon which the tax is paid must not be less than 
20.20 	1-1/4 times the declared unloaded weight of the motor vehicle, trailer, or semitrailer 
20.21 	to be registered, except recreational vehicles taxed under subdivision 1g, school buses 
20.22 	taxed under subdivision 18, and tow trucks or towing vehicles defined in section 169.011, 
20.23 	subdivision 83. The gross weight of a tow truck or towing vehicle is the actual weight 
20.24 	of the tow truck or towing vehicle fully equipped, but does not include the weight of a 
20.25 	wrecked or disabled vehicle towed or drawn by the tow truck or towing vehicle.
20.26 	(b) The gross weight of a motor vehicle, trailer, or semitrailer must not exceed 
20.27 	the gross weight upon which the license tax has been paid by more than four percent or 
20.28 	1,000 pounds, whichever is greater; provided that, a vehicle transporting unfinished forest 
20.29 	products on a highway, other than a highway that is part of the system of interstate and 
20.30 	defense highways, unless a federal exemption is granted, in accordance with paragraph 
20.31 	(d)(3):
20.32 	(1) shall not exceed its gross vehicle weight upon which the license tax has been 
20.33 	paid, or gross axle weight on any axle, by more than five percent and, notwithstanding 
21.1 	other law to the contrary, is not subject to any fee, fine, or other assessment or penalty for 
21.2 	exceeding a gross vehicle or axle weight by up to five percent; and
21.3 	(2) between the dates set by the commissioner in accordance with section 169.826, 
21.4 	subdivision 1, is not subject to any provision of paragraph (d) or chapter 169 limiting 
21.5 	the gross axle weight of any individual axle unless the entire vehicle also exceeds its 
21.6 	gross vehicle weight plus its weight allowance allowed in clause (1) and plus any weight 
21.7 	allowance permitted under section 169.826, in which case the vehicle is subject to all 
21.8 	applicable penalties for excess weight violations.
21.9 	(c) The gross weight of the motor vehicle, trailer, or semitrailer for which the 
21.10 	license tax is paid must be indicated by a distinctive character on the license plate or 
21.11 	plates except as provided in subdivision 12 and the plate or plates must be kept clean 
21.12 	and clearly visible at all times.
21.13 	(d) The owner, driver, or user of a motor vehicle, trailer, or semitrailer, upon 
21.14 	conviction for transporting a gross weight in excess of the gross weight for which it was 
21.15 	registered or for operating a vehicle with an axle weight exceeding the maximum lawful 
21.16 	axle load weight, is guilty of a misdemeanor and subject to increased registration or 
21.17 	reregistration according to the following schedule:
21.18 	(1) Upon conviction for transporting a gross weight in excess of the gross weight 
21.19 	for which a motor vehicle, trailer, or semitrailer is registered by more than the allowance 
21.20 	set forth in paragraph (b) but less than 25 percent, or for operating or using a motor 
21.21 	vehicle, trailer, or semitrailer with an axle weight exceeding the maximum lawful axle 
21.22 	load as provided in sections 169.822 to 169.829 by more than the allowance set forth in 
21.23 	paragraph (b) but less than 25 percent, the owner, driver, or user of the motor vehicle, 
21.24 	trailer, or semitrailer used to commit the violation, in addition to any penalty imposed for 
21.25 	the misdemeanor, shall apply to the registrar to increase the authorized gross weight to 
21.26 	be carried on the vehicle to a weight equal to or greater than the gross weight the owner, 
21.27 	driver, or user was convicted of carrying. The increase is computed for the balance of 
21.28 	the calendar year on the basis of 1/12 of the annual tax for each month remaining in the 
21.29 	calendar year beginning with the first day of the month in which the violation occurred. 
21.30 	If the additional registration tax computed upon that weight, plus the tax already paid, 
21.31 	amounts to more than the regular tax for the maximum gross weight permitted for the 
21.32 	vehicle under sections 169.822 to 169.829, that additional amount must nevertheless be 
21.33 	paid into the highway fund, but the additional tax thus paid does not authorize or permit 
21.34 	any person to operate the vehicle with a gross weight in excess of the maximum legal 
21.35 	weight as provided by sections 169.822 to 169.829. Unless the owner within 30 days 
21.36 	after a conviction applies to increase the authorized weight and pays the additional tax 
22.1 	as provided in this section, the registrar shall revoke the registration on the vehicle and 
22.2 	demand the return of the registration card and plates issued on that registration.
22.3 	(2) Upon conviction of an owner, driver, or user of a motor vehicle, trailer, or 
22.4 	semitrailer for transporting a gross weight in excess of the gross weight for which the 
22.5 	motor vehicle, trailer, or semitrailer was registered by 25 percent or more or for operating 
22.6 	or using the vehicle or trailer with an axle weight exceeding the maximum lawful axle load 
22.7 	as provided in sections 169.822 to 169.829 by 25 percent or more, and in addition to any 
22.8 	penalty imposed for the misdemeanor, the registrar shall either (i) cancel the reciprocity 
22.9 	privileges on the vehicle involved if the vehicle is being operated under reciprocity 
22.10 	or (ii) if the vehicle is not being operated under reciprocity, cancel the certificate of 
22.11 	registration on the vehicle operated and demand the return of the registration certificate 
22.12 	and registration plates. The registrar may not cancel the registration or reciprocity 
22.13 	privileges for any vehicle found in violation of seasonal load restrictions imposed under 
22.14 	section 169.87 unless the axle weight exceeds the year-round weight limit for the highway 
22.15 	on which the violation occurred. The registrar may investigate any allegation of gross 
22.16 	weight violations and demand that the operator show cause why all future operating 
22.17 	privileges in the state should not be revoked unless the additional tax assessed is paid.
22.18 	(3) Clause (1) does not apply to the first haul of unprocessed or raw farm products 
22.19 	or unfinished forest products, when the registered gross weight is not exceeded by more 
22.20 	than ten percent. For purposes of this clause, "first haul" means (i) the first, continuous 
22.21 	transportation of unprocessed or raw farm products from the place of production or 
22.22 	on-farm storage site to any other location within 50 100 miles of the place of production or 
22.23 	on-farm storage site, or (ii) the continuous or noncontinuous transportation of unfinished 
22.24 	forest products from the place of production to the place of final processing or manufacture 
22.25 	located within 200 miles of the place of production.
22.26 	(4) When the registration on a motor vehicle, trailer, or semitrailer is revoked by the 
22.27 	registrar according to this section, the vehicle must not be operated on the highways of the 
22.28 	state until it is registered or reregistered, as the case may be, and new plates issued, and 
22.29 	the registration fee is the annual tax for the total gross weight of the vehicle at the time of 
22.30 	violation. The reregistration pursuant to this subdivision of any vehicle operating under 
22.31 	reciprocity agreements pursuant to section 168.181 or 168.187 must be at the full annual 
22.32 	registration fee without regard to the percentage of vehicle miles traveled in this state.

22.33 	Sec. 18. Minnesota Statutes 2010, section 168.013, is amended by adding a subdivision 
22.34 	to read:
23.1 		Subd. 22.Optional donation for education on anatomical gifts. As part of 
23.2 	procedures for payment of the vehicle registration tax under this section, the commissioner 
23.3 	shall allow a vehicle owner to add to the tax a $2 donation for the purposes of public 
23.4 	information and education on anatomical gifts under section 171.075, for in-person 
23.5 	transactions conducted by a deputy registrar appointed under section 168.33, subdivision 
23.6 	2. This subdivision applies to annual renewal registrations only, and does not apply to 
23.7 	registrations authorized under sections 168.053 to 168.057, 168.127, 168.187, and 168.27.

23.8 	EFFECTIVE DATE. This section is effective January 1, 2013.

23.9 	Sec. 19. Minnesota Statutes 2011 Supplement, section 168.12, subdivision 5, is 
23.10 	amended to read:
23.11 		Subd. 5.Additional fee. (a) In addition to any fee otherwise authorized or any tax 
23.12 	otherwise imposed upon any vehicle, the payment of which is required as a condition to 
23.13 	the issuance of any plate or plates, the commissioner shall impose the fee specified in 
23.14 	paragraph (b) that is calculated to cover the cost of manufacturing and issuing the plate 
23.15 	or plates, except for plates issued to disabled veterans as defined in section 168.031 and 
23.16 	plates issued pursuant to section 168.124, 168.125, or 168.27, subdivisions 16 and 17, 
23.17 	for passenger automobiles. The commissioner shall issue graphic design plates only 
23.18 	for vehicles registered pursuant to section 168.017 and recreational vehicles registered 
23.19 	pursuant to section 168.013, subdivision 1g.
23.20 	(b) Unless otherwise specified or exempted by statute, the following plate and 
23.21 	validation sticker fees apply for the original, duplicate, or replacement issuance of a 
23.22 	plate in a plate year:

23.23	License Plate
			Single
		Double
	
23.24		Regular and Disability
		$
	4.50
	$
	6.00
	
23.25		Special
		$
	8.50
	$
	10.00
	
23.26		Personalized (Replacement)
		$
	10.00
	$
	14.00
	
23.27		Collector Category
		$
	13.50
	$
	15.00
	
23.28		Emergency Vehicle Display
		$
	3.00
	$
	6.00
	
23.29		Utility Trailer Self-Adhesive
		$
	2.50
			
23.30		Vertical Motorcycle Plate
		$
	100.00
		NA
	
23.31	Stickers
						
23.32		Duplicate year
		$
	1.00
	$
	1.00
	
23.33		International Fuel Tax Agreement
		$
	2.50
			
23.34 	(c) For vehicles that require two of the categories above, the registrar shall only 
23.35 	charge the higher of the two fees and not a combined total.
24.1 	(d) As part of procedures for payment of the fee under paragraph (b), the 
24.2 	commissioner shall allow a vehicle owner to add to the fee, a $2 donation for the purposes 
24.3 	of public information and education on anatomical gifts under section 171.075.

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

24.5 	Sec. 20. Minnesota Statutes 2011 Supplement, section 168.123, subdivision 1, is 
24.6 	amended to read:
24.7 		Subdivision 1.General requirements; fees. (a) On payment of a fee of $10 for 
24.8 	each set of two plates, or for a single plate in the case of a motorcycle plate, payment of 
24.9 	the registration tax required by law, and compliance with other applicable laws relating to 
24.10 	vehicle registration and licensing, as applicable, the commissioner shall issue:
24.11 	(1) special veteran's plates to an applicant who served in the active military service 
24.12 	in a branch of the armed forces of the United States or of a nation or society allied with the 
24.13 	United States in conducting a foreign war, was discharged under honorable conditions, and 
24.14 	is a registered owner of a passenger automobile as defined in section 168.002, subdivision 
24.15 	24, recreational motor vehicle as defined in section 168.002, subdivision 27, or one-ton 
24.16 	pickup truck as defined in section 168.002, subdivision 21b, but which is not a commercial 
24.17 	motor vehicle as defined in section 169.011, subdivision 16; or
24.18 	(2) a veteran's special motorcycle plate as described in subdivision 2, paragraph (a), 
24.19 	(f), (h), (i), or (j), or another special plate designed by the commissioner to an applicant 
24.20 	who is a registered owner of a motorcycle as defined in section 168.002, subdivision 19, 
24.21 	and meets the criteria listed in this paragraph and in subdivision 2, paragraph (a), (f), (h), 
24.22 	(i), or (j). Plates issued under this clause must be the same size as regular motorcycle 
24.23 	plates. Special motorcycle license plates issued under this clause are not subject to 
24.24 	section 168.1293.
24.25 	(b) The additional fee of $10 is payable for each set of veteran's plates, is payable 
24.26 	only when the plates are issued, and is not payable in a year in which stickers are issued 
24.27 	instead of plates.
24.28 	(c) The veteran must have a certified copy of the veteran's discharge papers, 
24.29 	indicating character of discharge, at the time of application. If an applicant served in the 
24.30 	active military service in a branch of the armed forces of a nation or society allied with the 
24.31 	United States in conducting a foreign war and is unable to obtain a record of that service 
24.32 	and discharge status, the commissioner of veterans affairs may certify the applicant as 
24.33 	qualified for the veterans' plates provided under this section.
24.34 	(d) For license plates issued for one-ton trucks described in paragraph (a), clause 
24.35 	(1), the commissioner shall collect a surcharge of $5 on each $10 fee collected under 
25.1 	paragraph (a). The surcharge must be deposited in the vehicle services operating account 
25.2 	in the special revenue fund.

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

25.4 	Sec. 21. Minnesota Statutes 2010, section 168.185, is amended to read:
25.5 	168.185 USDOT NUMBERS.
25.6 	(a) Except as provided in paragraph (d), an owner of a truck or truck-tractor having 
25.7 	a gross vehicle weight of more than 10,000 pounds, as defined in section 169.011, 
25.8 	subdivision 32, shall report to the commissioner at the time of registration its USDOT 
25.9 	carrier number. A person subject to this paragraph who does not have a USDOT number 
25.10 	shall apply for the number at the time of registration by completing a form MCS-150 Motor 
25.11 	Carrier Identification Report, issued by the Federal Motor Carrier Safety Administration, 
25.12 	or comparable document as determined by the commissioner. The commissioner shall not 
25.13 	assign a USDOT carrier number to a vehicle owner who is not subject to this paragraph.
25.14 	(b) Assigned USDOT numbers must be displayed as required by section 221.031, 
25.15 	subdivision 6. The vehicle owner shall notify the commissioner if there is a change to the 
25.16 	owner's USDOT number.
25.17 	(c) If an owner fails to report or apply for a USDOT number, the commissioner shall 
25.18 	suspend the owner's registration.
25.19 	(d) This section does not apply to (1) a farm truck that (i) is not used in interstate 
25.20 	commerce or (ii) does not leave the physical boundaries of the state, (2) a vehicle that is 
25.21 	not used in intrastate commerce or interstate commerce, or (3) a vehicle that is owned 
25.22 	and used solely in the transaction of official business by the federal government, the 
25.23 	state, or any political subdivision.

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

25.25 	Sec. 22. Minnesota Statutes 2010, section 168A.03, subdivision 1, is amended to read:
25.26 		Subdivision 1.No certificate issued. The registrar shall not issue a certificate of 
25.27 	title for:
25.28 	(1) a vehicle owned by the United States;
25.29 	(2) a vehicle owned by a nonresident and not required by law to be registered in 
25.30 	this state;
25.31 	(3) a vehicle owned by a nonresident and regularly engaged in the interstate 
25.32 	transportation of persons or property for which a currently effective certificate of title 
25.33 	has been issued in another state;
26.1 	(4) a vehicle moved solely by animal power;
26.2 	(5) an implement of husbandry;
26.3 	(6) special mobile equipment;
26.4 	(7) a self-propelled wheelchair or invalid tricycle;
26.5 	(8) a trailer (i) having a gross weight of 4,000 pounds or less unless a secured party 
26.6 	holds an interest in the trailer or a certificate of title was previously issued by this state or 
26.7 	any other state or (ii) designed primarily for agricultural purposes except a recreational 
26.8 	vehicle or a manufactured home, both as defined in section 168.002, subdivisions 16 
26.9 	and 27;
26.10 	(9) a snowmobile; and
26.11 	(10) a spotter truck, as defined in section 169.011, subdivision 77; and
26.12 	(11) an electric-assisted bicycle, as defined in section 169.011, subdivision 27.

26.13 	Sec. 23. Minnesota Statutes 2010, section 168A.07, subdivision 1, is amended to read:
26.14 		Subdivision 1.Ownership at issue; certificate withheld or bond filed. In the event 
26.15 	application is made in this state for a certificate of title on a vehicle and the department is 
26.16 	not satisfied as to the ownership of the vehicle or the existence of security interests therein, 
26.17 	the vehicle may be registered but the department, subject to subdivision 1a, shall either:
26.18 	(1) withhold issuance of a certificate of title until the applicant shall present 
26.19 	documents reasonably sufficient to satisfy the department of the applicant's ownership of 
26.20 	the vehicle and as to any security interest therein; or
26.21 	(2) as a condition to issuing a certificate of title, require the applicant to file a bond
26.22 	in the form and amount provided in subdivision 1b.
26.23 		Subd. 1a.Ownership at issue; requirements for certificate issuance. (a) In the 
26.24 	event application is made in this state for a certificate of title on a vehicle with a model 
26.25 	year designated by the manufacturer of more than five years prior to the year in which 
26.26 	application is made, and the applicant is unable to establish sole ownership of the vehicle 
26.27 	because one or more owners, prior owners, or lienholders cannot be found, the department 
26.28 	shall issue a certificate of title to the applicant if the applicant submits:
26.29 	(1) the application;
26.30 	(2) a bond in the form and amount provided in subdivision 1b;
26.31 	(3) an affidavit that identifies the make, model year, and vehicle identification 
26.32 	number of the vehicle, and includes a statement that:
26.33 	(i) the applicant is an owner of the vehicle;
26.34 	(ii) the applicant has physical possession of the vehicle; and
27.1 	(iii) in attempting to transfer interest in the vehicle or obtain a certificate of title or 
27.2 	lien release, the applicant was unable after using due diligence to (A) determine the names 
27.3 	or locations of one or more owners, prior owners, or lienholders; or (B) successfully 
27.4 	contact one or more owners, prior owners, or lienholders known to the applicant; and
27.5 	(4) payment for required taxes and fees.
27.6 	(b) Unless the department has been notified of the pendency of an action to recover 
27.7 	the bond under paragraph (a), clause (2), the department shall allow it to expire at the 
27.8 	end of three years.
27.9 		Subd. 1b.Bond requirements. A bond filed under this section must be in the form 
27.10 	prescribed by the department and executed by the applicant, and either accompanied by the 
27.11 	deposit of cash or executed by a surety company authorized to do business in this state, in 
27.12 	an amount equal to 1-1/2 times the value of the vehicle as determined by the department. 
27.13 	The bond shall be conditioned to indemnify any prior owner and secured party and any 
27.14 	subsequent purchaser of the vehicle or person acquiring any security interest therein, or the 
27.15 	successor in interest of any said person, against any expense, loss, or damage, including 
27.16 	reasonable attorneys' fees, by reason of the issuance of the certificate of title to the vehicle 
27.17 	or on account of any defect in or undisclosed security interest upon the right, title and 
27.18 	interest of the applicant in and to the vehicle. Any such interested person shall have a right 
27.19 	of action to recover on such bond for any breach of its conditions, but the aggregate 
27.20 	liability of the surety to all such persons shall in no event exceed the amount of the bond. 
27.21 	Unless the department has been notified of the pendency of an action to recover on the 
27.22 	bond and if all questions as to ownership and outstanding security interests have been 
27.23 	resolved to the satisfaction of the department, such bond, and any deposit accompanying 
27.24 	it, shall be returned at the end of three years or prior thereto in the event the vehicle is no 
27.25 	longer registered in this state and the currently valid certificate of title is surrendered.

27.26 	Sec. 24. Minnesota Statutes 2010, section 169.011, subdivision 4, is amended to read:
27.27 		Subd. 4.Bicycle. "Bicycle" means every device capable of being propelled 
27.28 	solely by human power upon which any person may ride, having two tandem wheels 
27.29 	except scooters and similar devices, and including any device generally recognized as a 
27.30 	bicycle though equipped with two front or rear wheels. Bicycle does not include scooters, 
27.31 	motorized foot scooters, or similar devices.

27.32 	Sec. 25. Minnesota Statutes 2010, section 169.011, subdivision 27, is amended to read:
27.33 		Subd. 27.Electric-assisted bicycle. "Electric-assisted bicycle" means a motor 
27.34 	vehicle bicycle with two or three wheels that:
28.1 	(1) has a saddle and fully operable pedals for human propulsion;
28.2 	(2) meets the requirements:
28.3 	(i) of federal motor vehicle safety standards for a motor-driven cycle in Code of 
28.4 	Federal Regulations, title 49, sections 571.1 et seq.; or
28.5 	(ii) for bicycles under Code of Federal Regulations, title 16, part 1512, or successor 
28.6 	requirements; and
28.7 	(3) has an electric motor that (i) has a power output of not more than 1,000 watts, (ii) 
28.8 	is incapable of propelling the vehicle at a speed of more than 20 miles per hour, (iii) is 
28.9 	incapable of further increasing the speed of the device when human power alone is used 
28.10 	to propel the vehicle at a speed of more than 20 miles per hour, and (iv) disengages or 
28.11 	ceases to function when the vehicle's brakes are applied.

28.12 	Sec. 26. Minnesota Statutes 2010, section 169.011, subdivision 44, is amended to read:
28.13 		Subd. 44.Motorcycle. "Motorcycle" means every motor vehicle having a seat or 
28.14 	saddle for the use of the rider and designed to travel on not more than three wheels in 
28.15 	contact with the ground, including motor scooters and bicycles with motor attached, 
28.16 	other than those vehicles defined as. Motorcycle does not include (1)  motorized bicycles
28.17 	as defined in subdivision 45, but excluding (2) electric-assisted bicycles as defined in 
28.18 	subdivision 27, or (3) a tractor.

28.19 	Sec. 27. Minnesota Statutes 2010, section 169.011, subdivision 45, is amended to read:
28.20 		Subd. 45.Motorized bicycle. "Motorized bicycle" means a bicycle that is propelled 
28.21 	by an electric or a liquid fuel motor of a piston displacement capacity of 50 cubic 
28.22 	centimeters or less, and a maximum of two brake horsepower, which is capable of a 
28.23 	maximum speed of not more than 30 miles per hour on a flat surface with not more than 
28.24 	one percent grade in any direction when the motor is engaged. "Motorized bicycle" 
28.25 	includes does not include an electric-assisted bicycle as defined in subdivision 27.

28.26 	Sec. 28. Minnesota Statutes 2010, section 169.06, subdivision 4, is amended to read:
28.27 		Subd. 4.Obedience to traffic-control signal or flagger; presumptions. (a) The 
28.28 	driver of any vehicle shall obey the instructions of any official traffic-control device 
28.29 	applicable thereto placed in accordance with the provisions of this chapter, unless 
28.30 	otherwise directed by a police officer or by a certified overdimensional load escort driver
28.31 	flagger authorized under this subdivision, subject to the exceptions granted the driver of 
28.32 	an authorized emergency vehicle in this chapter.
29.1 	(b) No provision of this chapter for which official traffic-control devices are required 
29.2 	shall be enforced against an alleged violator if at the time and place of the alleged 
29.3 	violation an official device is not in proper position and sufficiently legible to be seen by 
29.4 	an ordinarily observant person. Whenever a particular section does not state that official 
29.5 	traffic-control devices are required, such section shall be effective even though no devices 
29.6 	are erected or in place.
29.7 	(c) Whenever official traffic-control devices are placed in position approximately 
29.8 	conforming to the requirements of this chapter, such devices shall be presumed to have 
29.9 	been so placed by the official act or direction of lawful authority, unless the contrary 
29.10 	shall be established by competent evidence.
29.11 	(d) Any official traffic-control device placed pursuant to the provisions of this 
29.12 	chapter and purporting to conform to the lawful requirements pertaining to such devices 
29.13 	shall be presumed to comply with the requirements of this chapter, unless the contrary 
29.14 	shall be established by competent evidence.
29.15 	(e) A flagger in a designated work zone may stop vehicles and hold vehicles in place 
29.16 	until it is safe for the vehicles to proceed. A person operating a motor vehicle that has 
29.17 	been stopped by a flagger in a designated work zone may proceed after stopping only on 
29.18 	instruction by the flagger.
29.19 	(f) An overdimensional load escort driver with a certificate issued under section 
29.20 	299D.085, while acting as a flagger escorting a legal overdimensional load, may stop 
29.21 	vehicles and hold vehicles in place until it is safe for the vehicles to proceed. A person 
29.22 	operating a motor vehicle that has been stopped by an escort driver acting as a flagger may 
29.23 	proceed only on instruction by the flagger or a police officer.
29.24 	(g) A person may stop and hold vehicles in place until it is safe for the vehicles to 
29.25 	proceed, if the person: (1) holds a motorcycle road guard certificate issued under section 
29.26 	171.60; (2) meets the safety and equipment standards for operating under the certificate; 
29.27 	(3) is acting as a flagger escorting a motorcycle group ride; (4) has notified each statutory 
29.28 	or home rule charter city through which the motorcycle group is proceeding; and (5) has 
29.29 	obtained consent from the chief of police, or the chief's designee, of any city of the first 
29.30 	class through which the motorcycle group is proceeding. A flagger operating as provided 
29.31 	under this paragraph may direct operators of motorcycles within a motorcycle group 
29.32 	ride or other vehicle traffic, notwithstanding any contrary indication of a traffic-control 
29.33 	device, including stop signs or traffic-control signals. A person operating a vehicle that 
29.34 	has been stopped by a flagger under this paragraph may proceed only on instruction by the 
29.35 	flagger or a police officer.

30.1 	Sec. 29. Minnesota Statutes 2010, section 169.222, subdivision 4, is amended to read:
30.2 		Subd. 4.Riding on roadway or shoulder rules. (a) Every person operating a 
30.3 	bicycle upon a roadway shall ride as close as practicable to the right-hand curb or edge of 
30.4 	the roadway except under any of the following situations:
30.5 	(1) when overtaking and passing another vehicle proceeding in the same direction;
30.6 	(2) when preparing for a left turn at an intersection or into a private road or driveway;
30.7 	(3) when reasonably necessary to avoid conditions, including fixed or moving 
30.8 	objects, vehicles, pedestrians, animals, surface hazards, or narrow width lanes, that make 
30.9 	it unsafe to continue along the right-hand curb or edge.
30.10 	(b) If a bicycle is traveling on a shoulder of a roadway, the bicycle shall travel in the 
30.11 	same direction as adjacent vehicular traffic.
30.12 	(c) Persons riding bicycles upon a roadway or shoulder shall not ride more than two 
30.13 	abreast and shall not impede the normal and reasonable movement of traffic and, on a 
30.14 	laned roadway, shall ride within a single lane.
30.15 	(d) A person operating a bicycle upon a sidewalk, or across a roadway or shoulder 
30.16 	on a crosswalk, shall yield the right-of-way to any pedestrian and shall give an audible 
30.17 	signal when necessary before overtaking and passing any pedestrian. No person shall ride 
30.18 	a bicycle upon a sidewalk within a business district unless permitted by local authorities. 
30.19 	Local authorities may prohibit the operation of bicycles on any sidewalk or crosswalk 
30.20 	under their jurisdiction.
30.21 	(e) An individual operating a bicycle or other vehicle on a bikeway shall leave a safe 
30.22 	distance when overtaking a bicycle or individual proceeding in the same direction on the 
30.23 	bikeway, and shall maintain clearance until safely past the overtaken bicycle or individual.
30.24 	(f) A person lawfully operating a bicycle on a sidewalk, or across a roadway or 
30.25 	shoulder on a crosswalk, shall have all the rights and duties applicable to a pedestrian 
30.26 	under the same circumstances.
30.27 	(g) A person may operate an electric-assisted bicycle on the shoulder of a roadway, 
30.28 	on a bikeway, or on a bicycle trail, if not otherwise prohibited.

30.29 	Sec. 30. Minnesota Statutes 2010, section 169.222, subdivision 6, is amended to read:
30.30 		Subd. 6.Bicycle equipment. (a) No person shall operate a bicycle at nighttime 
30.31 	unless the bicycle or its operator is equipped with (1) a lamp which shall emit emits
30.32 	a white light visible from a distance of at least 500 feet to the front; and with (2) a red 
30.33 	reflector of a type approved by the Department of Public Safety which is visible from all 
30.34 	distances from 100 feet to 600 feet to the rear when directly in front of lawful lower 
30.35 	beams of headlamps on a motor vehicle.
31.1 	(b) No person may operate a bicycle at any time when there is not sufficient light to 
31.2 	render persons and vehicles on the highway clearly discernible at a distance of 500 feet 
31.3 	ahead unless the bicycle or its operator is equipped with reflective surfaces that shall be 
31.4 	visible during the hours of darkness from 600 feet when viewed in front of lawful lower 
31.5 	beams of headlamps on a motor vehicle. The reflective surfaces shall include reflective 
31.6 	materials on each side of each pedal to indicate their presence from the front or the rear and 
31.7 	with a minimum of 20 square inches of reflective material on each side of the bicycle or its 
31.8 	operator. Any bicycle equipped with side reflectors as required by regulations for new 
31.9 	bicycles prescribed by the United States Consumer Product Safety Commission shall be 
31.10 	considered to meet the requirements for side reflectorization contained in this subdivision.
31.11 	(c) A bicycle may be equipped with a front lamp that emits a white flashing signal, 
31.12 	and a rear lamp that emits a red flashing signal.
31.13 	(d) A bicycle may be equipped with tires having studs, spikes, or other protuberances.
31.14 	(b) (e) No person shall operate a bicycle unless it is equipped with a brake which 
31.15 	will enable the operator to make the braked wheels skid on dry, level, clean pavement.
31.16 	(c) (f) No person shall operate upon a highway any bicycle equipped with handlebars 
31.17 	so raised that the operator must elevate the hands above the level of the shoulders in 
31.18 	order to grasp the normal steering grip area.
31.19 	(d) (g) No person shall operate upon a highway any bicycle which is of such a size 
31.20 	as to prevent the operator from stopping the bicycle, supporting it with at least one foot 
31.21 	on the highway surface and restarting in a safe manner.

31.22 	Sec. 31. Minnesota Statutes 2010, section 169.222, is amended by adding a subdivision 
31.23 	to read:
31.24 		Subd. 6a.Operator and passenger equipment. No person under the age of 18 
31.25 	shall operate or ride an electric-assisted bicycle on a street or highway without wearing 
31.26 	properly fitted and fastened headgear that (1) complies with standards established by 
31.27 	the commissioner of public safety under section 169.974, subdivision 4; or (2) meets 
31.28 	the standards under Code of Federal Regulations, title 16, part 1203, or successor 
31.29 	requirements.

31.30 	Sec. 32. Minnesota Statutes 2010, section 169.222, is amended by adding a subdivision 
31.31 	to read:
31.32 		Subd. 6b.Operator age. No person under the age of 15 shall operate an 
31.33 	electric-assisted bicycle.

32.1 	Sec. 33. Minnesota Statutes 2010, section 169.222, subdivision 7, is amended to read:
32.2 		Subd. 7.Sale with reflectors and other equipment. No person shall sell or offer for 
32.3 	sale any new bicycle unless it is equipped with reflectors and other equipment as required 
32.4 	by subdivision 6, clauses (a) and paragraphs (b) and (e) and by the applicable regulations 
32.5 	for new bicycles prescribed by the United States Consumer Product Safety Commission.

32.6 	Sec. 34. Minnesota Statutes 2010, section 169.223, subdivision 1, is amended to read:
32.7 		Subdivision 1.Safety equipment; parking. Except as otherwise provided in this 
32.8 	section, Section 169.974 relating to motorcycles is applicable to motorized bicycles,
32.9 	except as otherwise provided in this section and except that:
32.10 	(1) protective headgear includes headgear that meets the American National 
32.11 	Standard for Protective Headgear for Bicyclists, ANSI Z90.4-1984, approved by the 
32.12 	American National Standards Institute, Inc. standards under Code of Federal Regulations, 
32.13 	title 16, part 1203, or successor requirements;
32.14 	(2) a motorized bicycle equipped with a headlight and taillight meeting the 
32.15 	requirements of lighting for motorcycles may be operated during nighttime hours;
32.16 	(3) except as provided in clause (5), protective headgear is not required for operators 
32.17 	18 years of age or older; and
32.18 	(4) the provisions of section 169.222, subdivision 9, governing the parking of 
32.19 	bicycles apply to motorized bicycles;.
32.20 	(5) the operator of an electric-assisted bicycle must wear properly fitted and 
32.21 	fastened headgear that meets the American National Standard for Protective Headgear for 
32.22 	Bicyclists, ANSI Z90.4-1984, approved by the American National Standards Institute, 
32.23 	Inc., when operating the electric-assisted bicycle on a street or highway; and
32.24 	(6) eye protection devices are not required for operators of electric-assisted bicycles.

32.25 	Sec. 35. Minnesota Statutes 2010, section 169.223, subdivision 5, is amended to read:
32.26 		Subd. 5.Other operation requirements and prohibitions. (a) A person operating 
32.27 	a motorized bicycle on a roadway shall ride as close as practicable to the right-hand curb 
32.28 	or edge of the roadway except in one of the following situations:
32.29 	(1) when overtaking and passing another vehicle proceeding in the same direction;
32.30 	(2) when preparing for a left turn at an intersection or into a private road or 
32.31 	driveway; or
32.32 	(3) when reasonably necessary to avoid conditions, including fixed or moving 
32.33 	objects, vehicles, pedestrians, animals, surface hazards, or narrow width lanes, that make 
32.34 	it unsafe to continue along the right-hand curb or edge.
33.1 	(b) Persons operating motorized bicycles on a roadway may not ride more than two 
33.2 	abreast and may not impede the normal and reasonable movement of traffic. On a laned 
33.3 	roadway, a person operating a motorized bicycle shall ride within a single lane.
33.4 	(c) This section does not permit the operation of a motorized bicycle on a bicycle 
33.5 	path or bicycle lane that is reserved for the exclusive use of nonmotorized traffic.
33.6 	(d) Subject to the provisions of section 160.263, subdivision 3, a person may operate 
33.7 	an electric-assisted bicycle on a bicycle lane. A person may operate an electric-assisted 
33.8 	bicycle on the shoulder of a roadway if the electric-assisted bicycle is traveling in the same 
33.9 	direction as the adjacent vehicular traffic.

33.10 	Sec. 36. Minnesota Statutes 2010, section 169.72, subdivision 1, is amended to read:
33.11 		Subdivision 1.Solid rubber, metal, and studded tires; exceptions; permits. (a) 
33.12 	Every solid rubber tire on a vehicle shall must have rubber on its entire traction surface at 
33.13 	least one inch thick above the edge of the flange of the entire periphery.
33.14 	(b) No person shall operate or move on any highway any motor vehicle, trailer, or 
33.15 	semitrailer, having any metal tire in contact with the roadway, except in case of emergency.
33.16 	(c) Except as provided in this section, no tire on a vehicle moved on a highway shall 
33.17 	have on its periphery any block, stud, flange, cleat, or spike or any other protuberances 
33.18 	of any material other than rubber which projects beyond the tread of the traction surface 
33.19 	of the tire.
33.20 	(d) It shall be is permissible to use any of the following on highways:
33.21 	(1) implements of husbandry with tires having protuberances which will not injure 
33.22 	the highway, and;
33.23 	(2) tire chains of reasonable proportions upon any vehicle when required for safety 
33.24 	because of snow, ice, or other conditions tending to cause a vehicle to skid; and
33.25 	(3) tires on a bicycle as provided in section 169.222, subdivision 6.
33.26 	(d) (e) The commissioner and local authorities in their respective jurisdictions may, 
33.27 	in their discretion, issue special permits authorizing the operation upon a highway of 
33.28 	traction engines or tractors having movable tracks with transverse corrugations upon the 
33.29 	periphery of such movable tracks or farm tractors or other farm machinery, the operation 
33.30 	of which upon a highway would otherwise be prohibited under this chapter.

33.31 	Sec. 37. Minnesota Statutes 2010, section 169.86, subdivision 3b, is amended to read:
33.32 		Subd. 3b.Escort vehicles. The commissioner or local authority shall specify in 
33.33 	the permit:
34.1 	(1) the minimum number of escort vehicles required to escort the overdimensional 
34.2 	load; and
34.3 	(2) whether the operators of the escort vehicles must be certified licensed peace 
34.4 	officers,or may be overdimensional load escort drivers who hold a current certificate under 
34.5 	section 299D.085, or may be civilian escort drivers as provided under section 299D.085.

34.6 	EFFECTIVE DATE. This section is effective on the effective date of this 
34.7 	subdivision under Laws 2010, chapter 311, section 4.

34.8 	Sec. 38. Minnesota Statutes 2010, section 169.872, subdivision 1a, is amended to read:
34.9 		Subd. 1a.Limit on civil penalties. A civil penalty for excessive weight under 
34.10 	section 169.871 may be imposed based on a record of a shipment under this section only if 
34.11 	a state law enforcement officer or motor transportation representative (1) has inspected 
34.12 	and copied the record within 14 days of the date the shipment was received by the person 
34.13 	keeping the record, and (2) has assessed the penalty within 60 days of the date the officer 
34.14 	or representative inspected and copied the record.

34.15 	Sec. 39. Minnesota Statutes 2010, section 169.98, subdivision 1, is amended to read:
34.16 		Subdivision 1.Colors and markings. (a) Except as provided in subdivisions 2 and 
34.17 	2a, all motor vehicles which are primarily used in the enforcement of highway traffic rules 
34.18 	by the State Patrol or for general uniform patrol assignment by any municipal police 
34.19 	department or other law enforcement agency, except conservation officers, shall have 
34.20 	uniform colors and markings as provided in this subdivision. Motor vehicles of:
34.21 	(1) municipal police departments, including the University of Minnesota Police 
34.22 	Department and park police units, shall be predominantly blue, brown, green, black, 
34.23 	or white;
34.24 	(2) the State Patrol shall be predominantly maroon; and
34.25 	(3) the county sheriff's office shall be predominantly brown, black, gold,  or white.
34.26 	(b) The identity of the governmental unit operating the vehicle shall be displayed on 
34.27 	both front door panels and on the rear of the vehicle. The identity may be in the form of 
34.28 	a shield or emblem, or may be the word "police," "sheriff," or the words "State Patrol" 
34.29 	or "conservation officer," as appropriate, with letters not less than 2-1/2 inches high, 
34.30 	one-inch wide and of a three-eighths inch brush stroke. The identity shall be of a color 
34.31 	contrasting with the background color so that the motor vehicle is easily identifiable as 
34.32 	belonging to a specific type of law enforcement agency. Each vehicle shall be marked 
34.33 	with its own identifying number on the rear of the vehicle. The number shall be printed 
35.1 	in the same size and color required pursuant to this subdivision for identifying words 
35.2 	which may be displayed on the vehicle.

35.3 	Sec. 40. Minnesota Statutes 2010, section 169.98, subdivision 3, is amended to read:
35.4 		Subd. 3.Security guard vehicle. (a) All motor vehicles which are used by security 
35.5 	guards in the course of their employment may have any color other than those specified in 
35.6 	subdivision 1 for law enforcement vehicles. The identity of the security service shall be 
35.7 	displayed on the motor vehicle as required for law enforcement vehicles.
35.8 	(b) Notwithstanding subdivision 1, paragraph (a), clause (1), a security guard may 
35.9 	continue to use a motor vehicle that is predominantly black in the course of the guard's 
35.10 	employment if the vehicle was being used in this manner before August 1, 2002.
35.11 	(c) Notwithstanding subdivision 1, paragraph (a), clause (3), a security guard may 
35.12 	continue to use a motor vehicle that is predominantly gold in the course of the guard's 
35.13 	employment if the vehicle was being used in this manner before August 1, 2012.

35.14 	Sec. 41. Minnesota Statutes 2010, section 171.01, subdivision 41, is amended to read:
35.15 		Subd. 41.Motorized bicycle. "Motorized bicycle" means a bicycle that is propelled 
35.16 	by an electric or a liquid fuel motor of a piston displacement capacity of 50 cubic 
35.17 	centimeters or less, and a maximum of two brake horsepower, which is capable of a 
35.18 	maximum speed of not more than 30 miles per hour on a flat surface with not more than 
35.19 	one percent grade in any direction when the motor is engaged. "Motorized bicycle" 
35.20 	includes an electric-assisted bicycle as defined in section 169.011, subdivision 27 has the 
35.21 	meaning given in section 169.011, subdivision 45.

35.22 	Sec. 42. Minnesota Statutes 2010, section 171.02, subdivision 2b, is amended to read:
35.23 		Subd. 2b.Exception for type III vehicle drivers. (a) Notwithstanding subdivision 
35.24 	2, the holder of a class A, B, C, or D driver's license, without a school bus endorsement, 
35.25 	may operate a type III vehicle described in section 169.011, subdivision 71, paragraph (h), 
35.26 	under the conditions in paragraphs (b) through (o).
35.27 	(b) The operator is an employee of the entity that owns, leases, or contracts for 
35.28 	the school bus.
35.29 	(c) The operator's employer has adopted and implemented a policy that provides for 
35.30 	annual training and certification of the operator in:
35.31 	(1) safe operation of a type III vehicle;
35.32 	(2) understanding student behavior, including issues relating to students with 
35.33 	disabilities;
36.1 	(3) encouraging orderly conduct of students on the bus and handling incidents of 
36.2 	misconduct appropriately;
36.3 	(4) knowing and understanding relevant laws, rules of the road, and local school 
36.4 	bus safety policies;
36.5 	(5) handling emergency situations;
36.6 	(6) proper use of seat belts and child safety restraints;
36.7 	(7) performance of pretrip vehicle inspections;
36.8 	(8) safe loading and unloading of students, including, but not limited to:
36.9 	(i) utilizing a safe location for loading and unloading students at the curb, on the 
36.10 	nontraffic side of the roadway, or at off-street loading areas, driveways, yards, and other 
36.11 	areas to enable the student to avoid hazardous conditions;
36.12 	(ii) refraining from loading and unloading students in a vehicular traffic lane, on the 
36.13 	shoulder, in a designated turn lane, or a lane adjacent to a designated turn lane;
36.14 	(iii) avoiding a loading or unloading location that would require a pupil to cross a 
36.15 	road, or ensuring that the driver or an aide personally escort the pupil across the road if it 
36.16 	is not reasonably feasible to avoid such a location;
36.17 	(iv) placing the type III vehicle in "park" during loading and unloading; and
36.18 	(v) escorting a pupil across the road under item (iii) only after the motor is stopped, 
36.19 	the ignition key is removed, the brakes are set, and the vehicle is otherwise rendered 
36.20 	immobile; and
36.21 	(9) compliance with paragraph (k), concerning reporting certain convictions to the 
36.22 	employer within ten days of the date of conviction.
36.23 	(d) A background check or background investigation of the operator has been 
36.24 	conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03 
36.25 	for school district employees; section 144.057 or chapter 245C for day care employees; or 
36.26 	section 171.321, subdivision 3, for all other persons operating a type III vehicle under 
36.27 	this subdivision.
36.28 	(e) Operators shall submit to a physical examination as required by section 171.321, 
36.29 	subdivision 2.
36.30 	(f) The operator's employer requires preemployment drug testing of applicants for 
36.31 	operator positions. Current operators must comply with the employer's policy under 
36.32 	section 181.951, subdivisions 2, 4, and 5. Notwithstanding any law to the contrary, the 
36.33 	operator's employer may use a Breathalyzer or similar device to fulfill random alcohol 
36.34 	testing requirements.
36.35 	(g) The operator's driver's license is verified annually by the entity that owns, leases, 
36.36 	or contracts for the type III vehicle as required under section 171.321, subdivision 5.
37.1 	(h) A person who sustains a conviction, as defined under section 609.02, of violating 
37.2 	section 169A.25, 169A.26, 169A.27, or 169A.31, or whose driver's license is revoked 
37.3 	under sections 169A.50 to 169A.53 of the implied consent law, or who is convicted of 
37.4 	violating or whose driver's license is revoked under a similar statute or ordinance of 
37.5 	another state, is precluded from operating a type III vehicle for five years from the date 
37.6 	of conviction.
37.7 	(i) A person who has ever been convicted of a disqualifying offense as defined in 
37.8 	section 171.3215, subdivision 1, paragraph (c), may not operate a type III vehicle under 
37.9 	this subdivision.
37.10 	(j) A person who sustains a conviction, as defined under section 609.02, of a moving 
37.11 	offense in violation of chapter 169 within three years of the first of three other moving 
37.12 	offenses is precluded from operating a type III vehicle for one year from the date of 
37.13 	the last conviction.
37.14 	(k) An operator who sustains a conviction as described in paragraph (h), (i), or (j) 
37.15 	while employed by the entity that owns, leases, or contracts for the school bus, shall report 
37.16 	the conviction to the employer within ten days of the date of the conviction.
37.17 	(l) Students riding the type III vehicle must have training required under section 
37.18 	123B.90, subdivision 2.
37.19 	(m) Documentation of meeting the requirements listed in this subdivision must be 
37.20 	maintained under separate file at the business location for each type III vehicle operator. 
37.21 	The business manager, school board, governing body of a nonpublic school, or any 
37.22 	other entity that owns, leases, or contracts for the type III vehicle operating under this 
37.23 	subdivision is responsible for maintaining these files for inspection.
37.24 	(n) The type III vehicle must bear a current certificate of inspection issued under 
37.25 	section 169.451.
37.26 	(o) An employee of a school or of a school district, who is not employed for the sole 
37.27 	purpose of operating a type III vehicle, is exempt from paragraphs (e) and (f).
37.28 	(p) Notwithstanding any law to the contrary, if the testing under paragraph (f) 
37.29 	follows the testing procedures set forth for transportation workplace drug and alcohol 
37.30 	testing programs in Code of Federal Regulations, title 49, part 40, any person who is 
37.31 	also required to comply with the alcohol and controlled substances testing requirements 
37.32 	of Code of Federal Regulations, title 49, part 219, 382, or 655, is exempt from sections 
37.33 	181.950 to 181.957.

37.34 	Sec. 43. Minnesota Statutes 2011 Supplement, section 171.075, subdivision 1, is 
37.35 	amended to read:
38.1 		Subdivision 1.Anatomical gift account. An anatomical gift account is established 
38.2 	in the special revenue fund. The account consist of funds donated under sections 168.12
38.3 	168.013, subdivision 5 22, and 171.06, subdivision 2, and any other money donated, 
38.4 	allotted, transferred, or otherwise provided to the account. Money in the account is 
38.5 	annually appropriated to the commissioner for (1) grants under subdivision 2, and (2) 
38.6 	administrative expenses in implementing the donation and grant program.

38.7 	EFFECTIVE DATE. This section is effective January 1, 2013.

38.8 	Sec. 44. [171.60] MOTORCYCLE ROAD GUARD CERTIFICATE.
38.9 		Subdivision 1.Certificate required. No person may perform traffic control as a 
38.10 	motorcycle road guard as provided under chapter 169 without a valid motorcycle road 
38.11 	guard certificate issued by the commissioner.
38.12 		Subd. 2.Certification qualifications and standards; fee. Through the Minnesota 
38.13 	Motorcycle Safety Center, the commissioner of public safety shall:
38.14 	(1) establish qualifications and requirements for a person to obtain a motorcycle road 
38.15 	guard certificate under this section, which must include:
38.16 	(i) a minimum 18 years of age;
38.17 	(ii) possession of a valid driver's license; and
38.18 	(iii) successful completion of a motorcycle road guard certification course;
38.19 	(2) develop and offer, whether by the Minnesota Motorcycle Safety Center or 
38.20 	authorized agents, a motorcycle road guard certification course; and
38.21 	(3) establish safety and equipment standards for a person who operates under a 
38.22 	motorcycle road guard certificate, including but not limited to specifying requirements 
38.23 	for a reflective safety vest.
38.24 		Subd. 3.Fee. The commissioner of public safety shall assess a fee for each applicant 
38.25 	for a motorcycle road guard certificate, calculated to cover the commissioner's cost of 
38.26 	establishing and administering the program.
38.27 		Subd. 4.Penalty. A person who violates any provision of this section is guilty 
38.28 	of a petty misdemeanor.
38.29 		Subd. 5.Rulemaking. The commissioner of public safety shall adopt rules to carry 
38.30 	out the provisions of this section. Notwithstanding section 16A.1283, the rules must 
38.31 	specify the fee to be assessed under subdivision 3.

38.32 	Sec. 45. Minnesota Statutes 2010, section 174.03, subdivision 1b, is amended to read:
38.33 		Subd. 1b.Statewide freight and passenger rail plan; freight rail economic 
38.34 	development study. (a) The commissioner shall develop a comprehensive statewide 
39.1 	freight and passenger rail plan to be included and revised as a part of the statewide 
39.2 	transportation plan.
39.3 	(b) Before the initial version of the plan is adopted, the commissioner shall provide a 
39.4 	copy for review and comment to the chairs and ranking minority members of the senate 
39.5 	and house of representatives committees with jurisdiction over transportation policy and 
39.6 	finance. Notwithstanding paragraph (a), the commissioner may adopt the next revision 
39.7 	of the statewide transportation plan, scheduled to be completed in calendar year 2009, 
39.8 	prior to completion of the initial version of the comprehensive statewide freight and 
39.9 	passenger rail plan.
39.10 	(b) The commissioner, in cooperation with the commissioner of employment and 
39.11 	economic development, shall conduct a freight rail economic development study. The 
39.12 	study must assess the economic impact of freight railroads in the state and identify 
39.13 	opportunities to expand business development and enhance economic competitiveness 
39.14 	through improved utilization of freight rail options. The commissioner shall incorporate 
39.15 	findings from the study as an amendment or update to the comprehensive statewide freight 
39.16 	and passenger rail plan.
39.17 	(c) The commissioner shall provide an interim progress report by January 15, 2013, 
39.18 	and a final report by September 1, 2013, on the freight rail economic development study to 
39.19 	the chairs and ranking minority members of the legislative committees with jurisdiction 
39.20 	over transportation policy and finance and employment and economic development.  The 
39.21 	final report must include any recommended legislative initiatives.
39.22 	(d) The commissioner may expend money under section 222.50, subdivision 7, to 
39.23 	pay the costs of the study and reports under paragraphs (b) and (c).

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

39.25 	Sec. 46. Minnesota Statutes 2010, section 221.091, subdivision 2, is amended to read:
39.26 		Subd. 2.Small vehicle passenger service. (a) A city that licenses and regulates 
39.27 	small vehicle passenger service must do so by ordinance. The ordinance must, at a 
39.28 	minimum, provide for driver qualifications, insurance, vehicle safety, and periodic vehicle 
39.29 	inspections. A city that has adopted an ordinance complying with this subdivision may 
39.30 	enforce the registration requirement in section 221.021.
39.31 	(b) A person who provides small vehicle passenger service to an individual for the 
39.32 	purpose of obtaining nonemergency medical care and who receives reimbursement under 
39.33 	section 256B.0625, subdivision 17, for providing the service, must comply with the rules 
39.34 	of the commissioner adopted under section 174.30.

40.1 	Sec. 47. Minnesota Statutes 2011 Supplement, section 299A.705, subdivision 3, 
40.2 	is amended to read:
40.3 		Subd. 3.Driver and vehicle services technology account. (a) The driver and 
40.4 	vehicle services technology account is created in the special revenue fund, consisting of 
40.5 	the technology surcharge collected as specified in chapters 168, 168A, and 171; the filing 
40.6 	fee revenue collected under section 168.33, subdivision 7; and any other money otherwise 
40.7 	donated, allotted, appropriated, or legislated to this account.
40.8 	(b) Money in the account is annually appropriated to the commissioner of public 
40.9 	safety to support the research, development, deployment, and maintenance of a driver and 
40.10 	vehicle services information system, except that on or after the effective date of this 
40.11 	section, the commissioner may not expend funds from the account until the commissioner 
40.12 	has entered into at least one agreement with a private entity to develop the information 
40.13 	system.
40.14 	(c) Following completion of the deposit of filing fee revenue into the driver and 
40.15 	vehicle services technology account as provided under section 168.33, subdivision 7, the 
40.16 	commissioner shall submit a notification to the chairs and ranking minority members 
40.17 	of the legislative committees with jurisdiction over transportation policy and finance 
40.18 	concerning driver and vehicle services information system implementation, which must 
40.19 	include information on (1) total revenue deposited in the driver and vehicle services 
40.20 	technology account, with a breakdown by sources of funds; (2) total project costs incurred, 
40.21 	with a breakdown by key project components; and (3) an estimate of ongoing system 
40.22 	maintenance costs.

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

40.24 	Sec. 48. Minnesota Statutes 2010, section 299D.085, subdivision 1, is amended to read:
40.25 		Subdivision 1.Definition. For purposes of this section, the following terms have 
40.26 	the meanings given them:
40.27 	(1) "civilian escort driver" means an individual who is at least 18 years of age, 
40.28 	holds a valid driver's license for the type of vehicle being operated, and does not hold an 
40.29 	overdimensional load escort driver certificate under this section; and
40.30 	(2) "overdimensional load" is a vehicle or combination of vehicles of a size or 
40.31 	weight of vehicle or load exceeding the maximum specified in chapter 169, or otherwise 
40.32 	not in conformity with the provisions of chapter 169.

40.33 	EFFECTIVE DATE. This section is effective on the effective date of this 
40.34 	subdivision under Laws 2010, chapter 311, section 4.

41.1 	Sec. 49. Minnesota Statutes 2010, section 299D.085, is amended by adding a 
41.2 	subdivision to read:
41.3 		Subd. 2a.Civilian escort driver. (a) A civilian escort driver who meets those 
41.4 	requirements established as of January 1, 2012, to provide overdimensional load escorts 
41.5 	under Minnesota Statutes and under policies and regulations of the Department of 
41.6 	Public Safety and the Department of Transportation, is exempt from the requirements of 
41.7 	subdivisions 2, 3, and 5.
41.8 	(b) A civilian escort driver may not operate under this subdivision if the 
41.9 	overdimensional load:
41.10 	(1) extends over the centerline of a roadway; or
41.11 	(2) is routed to travel the wrong way on a road.

41.12 	EFFECTIVE DATE. This section is effective on the effective date of Minnesota 
41.13 	Statutes, section 299D.085, subdivisions 1 to 4, under Laws 2010, chapter 311, section 4.

41.14 	Sec. 50. Minnesota Statutes 2010, section 299D.09, is amended to read:
41.15 	299D.09 ESCORT SERVICE; APPROPRIATION; RECEIPTS.
41.16 	Fees charged for escort services provided by the State Patrol are annually 
41.17 	appropriated to the commissioner of public safety to administer and provide these services.
41.18 	The fees fee charged for services provided by the State Patrol with a vehicle are 
41.19 	$73.60 is $79.28 an hour in fiscal year 2008 and $75.76 an hour in fiscal year 2009 2013,
41.20 	and in fiscal year 2014 and thereafter, the fee may be reviewed and adjusted by the 
41.21 	commissioner of public safety in an amount equal to the costs of providing this service. 
41.22 	The fees fee charged for services provided without a vehicle are $54 is $59.28 an hour in 
41.23 	fiscal year 2008 and $56.16 an hour in fiscal year 2009 2013, and in fiscal year 2014 and
41.24 	thereafter, the fee may be reviewed and adjusted by the commissioner of public safety 
41.25 	in an amount equal to the costs of providing this service.
41.26 	The fees charged for State Patrol flight services are $140 an hour for a fixed wing 
41.27 	aircraft, $490 an hour for a helicopter, and $600 an hour for the Queen Air in fiscal 
41.28 	year 2012; $139.64 an hour for a fixed wing aircraft, $560.83 an hour for a helicopter, 
41.29 	and $454.84 an hour for the Queen Air in fiscal year 2013; and in fiscal year 2014 and 
41.30 	thereafter, the fees may be reviewed and adjusted by the commissioner of public safety in 
41.31 	an amount equal to the costs of providing these services.

41.32 	EFFECTIVE DATE. This section is effective July 1, 2012.

41.33 	Sec. 51. [375.771] VETERAN-OWNED SMALL BUSINESS CONTRACTS.
42.1 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
42.2 	section.
42.3 	(b) "Award" means the granting of a contract in accordance with all applicable laws 
42.4 	and rules governing competitive bidding, except as otherwise provided in this section.
42.5 	(c) "Contract" means an agreement entered into between a business entity and the 
42.6 	county for procurement of goods and services including both technical and nontechnical 
42.7 	goods and services, printing, and construction.
42.8 	(d) "County board" or "board" has the meaning given in section 375.01.
42.9 	(e) "County purchasing department" has the meaning given in section 375.72.
42.10 	(f) "Director of purchasing" has the meaning given in section 375.74.
42.11 	(g) "Subcontractor" means a business entity that enters into a legally binding 
42.12 	agreement with another business entity that is a party to a contract as defined in paragraph 
42.13 	(c).
42.14 	(h) "Veteran" has the meaning given in section 197.447.
42.15 	(i) "Veteran-owned small business" means a business designated under section 
42.16 	16C.16, subdivision 6a.
42.17 		Subd. 2.Policy; purpose; director. (a) A county board may establish a program 
42.18 	within the county in accordance with this section to provide a bid preference for 
42.19 	awarding contracts to designated veteran-owned small businesses for the procurement of 
42.20 	technical and nontechnical goods and services including, but not limited to, printing and 
42.21 	construction, broadly defined to include all phases of the construction process.
42.22 	(b) The purpose of this program is to facilitate the transition of veterans from 
42.23 	military to civilian life, and to help compensate veterans for their sacrifices including, but 
42.24 	not limited to, their sacrifice of health and time to the community, state, and nation during 
42.25 	their military service, as well as to enhance economic development throughout Minnesota.
42.26 	(c) The county board may direct the county director of purchasing, or other 
42.27 	designated official within the county purchasing department, to administer this program in 
42.28 	accordance with county policy established by the board.
42.29 		Subd. 3.Small business set-asides. (a) The county director of purchasing may 
42.30 	award up to a six percent preference in the amount bid for procurement of goods and 
42.31 	services including, but not limited to, technical and nontechnical goods and services, 
42.32 	printing, and construction to veteran-owned small businesses having their principal place 
42.33 	of business in Minnesota.
42.34 	(b) The board, as a condition of awarding a construction contract, may set goals that 
42.35 	require the prime contractor to subcontract a portion of the contract to  veteran-owned 
42.36 	small businesses. The board must establish a procedure for granting waivers from the 
43.1 	subcontracting requirement when qualified veteran-owned small businesses are not 
43.2 	reasonably available. The board may establish financial incentives for prime contractors 
43.3 	who exceed the goals for use of veteran-owned small business subcontractors and 
43.4 	financial penalties for prime contractors who fail to meet goals under this paragraph. The 
43.5 	subcontracting requirements of this paragraph do not apply to prime contractors who are 
43.6 	veteran-owned small businesses.
43.7 		Subd. 4.Awards to small businesses. At least 75 percent of subcontracts awarded 
43.8 	to veteran-owned small businesses must be performed by the business to which the 
43.9 	subcontract is awarded or another veteran-owned small business.
43.10 		Subd. 5.Awards, limitations. Contracts awarded under this section are subject to 
43.11 	all limitations adopted by the board.
43.12 		Subd. 6.Recourse to other businesses. If the director is unable to award a contract 
43.13 	under subdivisions 3 and 4, the award may be placed under normal solicitation and award 
43.14 	statutes and rules.
43.15 		Subd. 7.Noncompetitive bids. The board is encouraged to purchase from 
43.16 	veteran-owned small businesses designated under section 16C.16, subdivision 6a, when 
43.17 	making purchases that are not subject to competitive bidding procedures.
43.18 		Subd. 8.Report to board. At the request of the county board, the county treasurer 
43.19 	shall report to the board on compliance with this section. The information must be 
43.20 	reported at the time and in the manner requested by the board.

43.21 	EFFECTIVE DATE. This section is effective July 1, 2012, for contracts awarded 
43.22 	by counties on or after that date.

43.23 	Sec. 52. Minnesota Statutes 2010, section 473.388, subdivision 2, is amended to read:
43.24 		Subd. 2.Replacement service; eligibility. (a) The council may provide assistance 
43.25 	under the program to a statutory or home rule charter city or town or combination thereof, 
43.26 	that:
43.27 	(a) (1) is located in the metropolitan transit taxing district;
43.28 	(b) (2) is not served by the council bus service or is served only with council bus 
43.29 	routes which begin or end within the applying city or town or combination thereof; and
43.30 	(c) (3) has fewer than four scheduled runs of council bus service during off-peak 
43.31 	hours as defined by the Metropolitan Council.
43.32 	(b) Eligible cities or towns or combinations thereof may apply on behalf of a transit 
43.33 	operator with whom they propose to contract for service.
43.34 	The council may not provide assistance under this section to a statutory or home rule 
43.35 	charter city or town unless the city or town,
44.1 	(i) was receiving assistance under Minnesota Statutes 1982, section 174.265, by 
44.2 	July 1, 1984,
44.3 	(ii) had submitted an application for assistance under that section by July 1, 1984, or
44.4 	(iii) had submitted a letter of intent to apply for assistance under that section by July 
44.5 	1, 1984, and submits an application for assistance under this section by July 1, 1988. A 
44.6 	statutory or home rule charter city or town has an additional 12-month extension if it 
44.7 	notified the former regional transit board before July 1, 1988, that the city or town is in the 
44.8 	process of completing a transportation evaluation study that includes an assessment of 
44.9 	the local transit needs of the city or town.
44.10 	(c) The council may not provide assistance under this section unless the statutory or 
44.11 	home rule charter city or town or combination:
44.12 	(1) was receiving assistance under this section as of January 1, 2012; or
44.13 	(2) had submitted an application for assistance under this section by July 1, 2016.

44.14 	EFFECTIVE DATE. This section is effective August 1, 2012, and applies in the 
44.15 	counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

44.16 	Sec. 53. Minnesota Statutes 2010, section 473.388, subdivision 4, is amended to read:
44.17 		Subd. 4.Financial assistance. (a) The council must grant the requested financial 
44.18 	assistance if it determines that the proposed service is intended to replace the service to 
44.19 	the applying city or town or combination thereof by the council and that the proposed 
44.20 	service will meet the needs of the applicant at least as efficiently and effectively as the 
44.21 	existing service.
44.22 	(b) The minimum amount of assistance which the council must provide to a system
44.23 	under this section may not be less than the sum of the amounts calculated or determined 
44.24 	for each municipality comprising the system as follows: of the replacement service 
44.25 	municipalities as provided in paragraphs (c) and (d).
44.26 	(c) For each replacement service municipality that received assistance under this 
44.27 	section in 2011, the minimum amount of financial assistance is calculated as:
44.28 	(1) an amount equal to 3.74 percent of the total state revenues generated from the 
44.29 	taxes imposed under chapter 297B for the current fiscal year; times
44.30 	(2) the ratio of (i) the transit operating assistance grants received under this 
44.31 	subdivision by the municipality in calendar year 2001 or the tax revenues for transit 
44.32 	services levied by the municipality for taxes payable in 2001, including that portion of the 
44.33 	levy derived from the areawide pool under section 473F.08, subdivision 3, clause (a), plus 
44.34 	the portion of the municipality's aid under section 273.1398, subdivision 2, attributable 
44.35 	to the transit levy; times (2) the ratio of (i) an amount equal to 3.74 percent of the state 
45.1 	revenues generated from the taxes imposed under chapter 297B for the current fiscal 
45.2 	year to (ii) the total transit operating assistance grants received under this subdivision 
45.3 	in calendar year 2001 or the tax revenues for transit services levied by all replacement 
45.4 	service municipalities under this section for taxes payable in 2001, including that portion 
45.5 	of the levy derived from the areawide pool under section 473F.08, subdivision 3, clause 
45.6 	(a), plus the portion of homestead and agricultural credit aid under section 273.1398, 
45.7 	subdivision 2, attributable to nondebt transit levies,; times
45.8 	(3) the ratio of (i) the municipality's total taxable market value for taxes payable 
45.9 	in 2006 divided by the municipality's total taxable market value for taxes payable in 
45.10 	2001, to (ii) the total taxable market value of all property located in replacement service 
45.11 	municipalities for taxes payable in 2006 divided by the total taxable market value of all 
45.12 	property located in replacement service municipalities for taxes payable in 2001.
45.13 	(d) For each replacement service municipality that first begins receiving assistance 
45.14 	under this section after January 1, 2012, the council shall identify a minimum amount of 
45.15 	assistance. The amount must be (1) to the extent practical, commensurate with the amount 
45.16 	of assistance provided under paragraph (c); and (2) based on criteria developed by the 
45.17 	council, including the following factors: operating expenses and revenues from other 
45.18 	sources, service hours, ridership, and service performance standards.
45.19 	(c) (e) The council shall pay the amount to be provided to the recipient from the 
45.20 	funds the council receives in the metropolitan area transit account under section 16A.88.

45.21 	EFFECTIVE DATE. This section is effective August 1, 2012, and applies in the 
45.22 	counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

45.23 	Sec. 54. Minnesota Statutes 2010, section 604A.21, subdivision 5, is amended to read:
45.24 		Subd. 5.Recreational purpose. "Recreational purpose" includes, but is not 
45.25 	limited to, hunting; trapping; fishing; swimming; boating; camping; picnicking; hiking; 
45.26 	rock climbing; cave exploring; bicycling; horseback riding; firewood gathering; 
45.27 	pleasure driving, including snowmobiling and the operation of any motorized vehicle or 
45.28 	conveyance upon a road or upon or across land in any manner, including recreational trail 
45.29 	use; nature study; water skiing; winter sports; noncommercial aviation activities; and 
45.30 	viewing or enjoying historical, archaeological, scenic, or scientific sites. "Rock climbing" 
45.31 	means the climbing of a naturally exposed rock face. "Cave exploring" means the 
45.32 	planned exploration of naturally occurring cavities in rock, including passage through any 
45.33 	structures placed for the purpose of safe access, access control, or conservation, but does 
45.34 	not include the exploration of other man-made cavities such as tunnels, mines, and sewers.

46.1 	Sec. 55. Laws 2009, chapter 158, section 10, is amended to read:
46.2 	Sec. 10. EFFECTIVE DATE.
 46.3 	Sections 2 and 3 are effective August 1, 2009, and the amendments made in sections 
46.4 	2 and 3 to Minnesota Statutes, sections 169.011 and 169.045, expire July 31, 2012 2014.

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

46.6 	Sec. 56. Laws 2011, First Special Session chapter 3, article 1, section 4, is amended to 
46.7 	read:

46.8	Sec. 4. METROPOLITAN COUNCIL
 	$
	39,038,000
	$
	39,038,000
	
46.9 	This appropriation is from the general 
46.10 	fund for transit system operations under 
46.11 	Minnesota Statutes, sections 473.371 to 
46.12 	473.449.
46.13 	Of this appropriation, $140,000 in each 
46.14 	fiscal year is for transit service for disabled 
46.15 	veterans under Minnesota Statutes, section 
46.16 	473.408, subdivision 10.
46.17 	The base appropriation is $64,889,000 for 
46.18 	fiscal year 2014 and $64,970,000 for fiscal 
46.19 	year 2015.
46.20 	Notwithstanding Minnesota Statutes, section 
46.21 	473.388, subdivision 4, in each year of the 
46.22 	biennium fiscal year 2012, the Metropolitan 
46.23 	Council shall provide financial assistance to 
46.24 	transit providers under Minnesota Statutes, 
46.25 	section 473.388, in an amount that is 
46.26 	$1,650,000 less than the amount of assistance 
46.27 	that was provided to transit providers by the 
46.28 	Metropolitan Council in fiscal year 2011. 
46.29 	Funds not transferred as a result of this 
46.30 	rider are available for use by the council for 
46.31 	metropolitan transit operations.

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

47.1 	Sec. 57. LEGISLATIVE ROUTE NO. 227 REMOVED.
 47.2 	(a) Minnesota Statutes, section 161.115, subdivision 158, is repealed effective the 
47.3 	day after the commissioner of transportation receives a copy of the agreement between 
47.4 	the commissioner and the governing body of Wadena County to transfer jurisdiction of 
47.5 	Legislative Route No. 227 and notifies the revisor of statutes under paragraph (b).
47.6 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from 
47.7 	Minnesota Statutes when the commissioner of transportation sends notice to the revisor 
47.8 	electronically or in writing that the conditions required to transfer the route have been 
47.9 	satisfied.

47.10 	Sec. 58. LEGISLATIVE ROUTE NO. 258 REMOVED.
 47.11 	(a) Minnesota Statutes, section 161.115, subdivision 189, is repealed effective the 
47.12 	day after the commissioner of transportation receives a copy of the agreement between 
47.13 	the commissioner and the governing body of Brown County to transfer jurisdiction of 
47.14 	Legislative Route No. 258 and notifies the revisor of statutes under paragraph (b).
47.15 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from 
47.16 	Minnesota Statutes when the commissioner of transportation sends notice to the revisor 
47.17 	electronically or in writing that the conditions required to transfer the route have been 
47.18 	satisfied.

47.19 	Sec. 59. LEGISLATIVE ROUTE NO. 291 REMOVED.
 47.20 	(a) Minnesota Statutes, section 161.115, subdivision 222, is repealed effective the 
47.21 	day after the commissioner of transportation receives a copy of the agreement between the 
47.22 	commissioner and the governing body of the city of Hastings to transfer jurisdiction of 
47.23 	Legislative Route No. 291 and notifies the revisor of statutes under paragraph (b).
47.24 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from 
47.25 	Minnesota Statutes when the commissioner of transportation sends notice to the revisor 
47.26 	electronically or in writing that the conditions required to transfer the route have been 
47.27 	satisfied.

47.28 	Sec. 60. TRUNK HIGHWAY 47 MAINTENANCE.
 47.29 	Notwithstanding any law to the contrary, the commissioner of transportation shall 
47.30 	permit the Anoka County Board to perform routine roadway maintenance on the portion 
47.31 	of marked Trunk Highway 47 north of marked Trunk Highway 10 and located within the 
47.32 	jurisdiction of the county. For purposes of this section, "routine roadway maintenance" 
47.33 	means work on the roadway to keep it in a reasonable state of repair and functional use, 
48.1 	including but not limited to striping, erecting and maintaining traffic control devices, and 
48.2 	adding turn lanes within existing rights-of-way.

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

48.4 	Sec. 61. I-94 NOISE IMPACTS STAKEHOLDER GROUP.
 48.5 	(a) The commissioner of transportation shall establish a noise impacts stakeholder 
48.6 	group in conjunction with all trunk highway projects on marked Interstate Highway 
48.7 	94, at or near the interchange with marked Trunk Highway 280 in St. Paul, for which 
48.8 	preliminary engineering or preliminary design commences prior to January 1, 2018. 
48.9 	(b) At a minimum, membership of the stakeholder group consists of Department of 
48.10 	Transportation project team representatives and interested community stakeholders.
48.11 	(c) As part of the project development process for any project identified under 
48.12 	paragraph (a), the commissioner shall consult with the stakeholder group to provide 
48.13 	background information and data on noise impacts, review practices and evaluate options 
48.14 	for noise mitigation, and obtain recommendations from the stakeholder group for noise 
48.15 	mitigation components of the project design.

48.16 	Sec. 62. LEGISLATIVE REPORTS ON CONTRACTING.
 48.17 		Subdivision 1.Submission of reports. The commissioner shall report on experience 
48.18 	with and evaluation of the construction manager/general contractor method of contracting 
48.19 	authorized in Minnesota Statutes, sections 161.3207 to 161.3209. The reports must be 
48.20 	submitted to the chairs and ranking minority members of the legislative committees with 
48.21 	jurisdiction over transportation policy or transportation finance and in compliance with 
48.22 	Minnesota Statutes, sections 3.195 and 3.197. An interim report must be submitted 
48.23 	no later than 12 months following the commissioner's acceptance of five construction 
48.24 	manager/general contractor contracts. A final report must be submitted no later than 12 
48.25 	months following the commissioner's acceptance of ten construction manager/general 
48.26 	contractor contracts. 
48.27 		Subd. 2.Content of reports. The reports must include: (1) a description of 
48.28 	circumstances of any projects as to which construction manager/general contractor 
48.29 	requests for qualifications or requests for proposals were solicited, followed by a 
48.30 	cancellation of the solicitation; (2) a description of projects as to which construction 
48.31 	manager/general contractor method was utilized; (3) a comparison of project cost 
48.32 	estimates with final project costs, if available; and (4) evaluation of the construction 
48.33 	manager/general contractor method of procurement with respect to implications for 
48.34 	project cost, use of innovative techniques, completion time, and obtaining maximum 
49.1 	value. The final report must also include recommendations as to continued use of the 
49.2 	program and desired modifications to the program, and recommended legislation to 
49.3 	continue, discontinue, or modify the program.

49.4 	EFFECTIVE DATE. This section is effective the day following final enactment and 
49.5 	expires following the acceptance of ten construction manager/general contractor contracts.

49.6 	Sec. 63. REVISOR'S INSTRUCTION.
 49.7 	The revisor of statutes shall renumber the provisions of Minnesota Statutes listed 
49.8 	in column A to the references listed in column B. The revisor shall also make necessary 
49.9 	cross-reference changes in Minnesota Statutes consistent with the renumbering.

49.10		Column A
	Column B
	
49.11		169.011, subd. 83
	168B.011, subd. 12a
	
49.12		169.041
	168B.035
	
49.13		169.64, subd. 5
	168B.16
	
49.14		169.86, subd. 8
	168B.15
	
49.15		465.75
	168B.14
	
49.16		514.18, subd. 1a
	168B.045

49.17 	Sec. 64.  RULES REPEALER.
 49.18 	Minnesota Rules, parts 8810.9000; 8810.9100; 8810.9200; 8810.9300; 8810.9400; 
49.19 	8810.9500; 8810.9600; and 8810.9700, are repealed.

49.20 	Sec. 65. EFFECTIVE DATE.
 49.21 	Sections 28 and 44, subdivisions 1 to 4, are effective one year after publication in the 
49.22 	State Register of rules adopted under section 44, subdivision 5. Section 44, subdivision 5, 
49.23 	is effective the day following final enactment.

49.24 	Sec. 66. EFFECTIVE DATE.
 49.25 	Unless otherwise specified, this act is effective August 1, 2012.